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-- Had Tracy thanks Chris got a happy Wednesday market's up 32 points.
When -- talk -- time's person of the year person of the year not man of the year for some reason person of the year Ben Bernanke and of course though.
Throughout the year at time also put out a list of all the people that we will cost and there's this bunch of people that disappeared last year on a Soupy Sales.
-- the sensor so unbelievable drama that's always my favorite part long.
Oscar night and those things when -- -- the retrospective and kind of go back and they show everybody that.
On a pass when I was I was fighting for things do.
To see who gets the biggest applause AFL there's -- not Johnny come lately that it's the biggest applause there was somebody that was famous very recently and we all wonderful and and -- did great -- -- years ago.
People are saying -- it -- on the MTV generation back and applaud that but we.
Amy Farrah Fawcett Ted Kennedy -- -- -- a -- a lot of people that we lost mr.
Fossett by the lady pass the label is due date before Michael accident report saying if you -- time to -- under Michael Jackson note to self thumb if she got I don't know I mean.
-- I know all of that it via an NIC.
EC should it.
Police she was hot and Charlie's angels and everyone had a poster of her on the -- -- mile -- my brother had it on the set everybody -- them element row in the seventies and you know this certainly it's over the -- -- -- story that comes.
-- that that was just an -- shot that wasn't part of the photo session that she was therefore it was just some random shot and it became her most famous.
If you had to pick the ten most famous pictures of women I think it in history -- -- pretty close wouldn't it and that -- that there with the -- certain.
And certainly the the the subway the air coming up and -- -- hold it down the -- icon on.
As you guys you mentioned 35 points of -- positive today making up for yesterday's loss and luckily we didn't lose to more than yesterday we were sailing downward.
Before a final half hour rally -- -- save the day yesterday and we've been up about this much all day today.
You got -- economic data earlier in the day on CPI inflation actually Charles Brady.
Is very nice enough here to send out a note that says hey you mind the Fed.
They look at CPI and PPI that their favorite.
Inflation is really a year over year change in core personal consumption expenditures so.
-- certainly Ben Bernanke will talk later on today.
Nice to me the comment earlier that if if Ben Bernanke laughs at himself for being named time man of the year the stock market -- 300 points just because Ben Bernanke left and -- that was my accent human being right I.
-- I can be crazy let me what you got in November housing starts up.
The higher energy prices actually lifting stocks but again you know with all of rationed thing -- -- book our military acts here that we could talk about it with him to.
Still a concern right your CPI number you take out energy really happens so it at a gas prices that is -- energy food stuff like that so is that really.
Are we concerned about -- -- are we so are we seeing a little.
Well commodity prices influence 40% of the CPI in many different ways that was at nine -- for the month.
So we have condition and inflation is a process it's not an event if you look at inflation expectations.
The legislature and the five year tips today -- 2% for the first time since last year and the ten year tip also the highest level since last year.
Gold of course making its big move.
The dog obviously being depressed all the seeds are being -- for inflation and it just a matter of to what degree it's not a matter of of if.
So it's a matter of what degree what do you think that now you are you thinking Bernanke which who.
Almost certainly will say the same thing today as he said last week as he said last month.
Inflation is not a concern of -- You know -- short term interest rates are gonna stay near zero and they're more concerned with again trying to prop up this economy will we hear anything different today in what do you think.
Well unfortunately I don't think we will hear anything different you know I think we should hear something different let's compare a year ago.
Now they cut rates from 1% to the range of zero to a quarter so let's see what's happened over the past year.
The dollars down about 70%.
Gold of about 30% yes and -- a 30%.
We were pricing in.
2% over the next five years.
Oil prices are up from mid thirties to over seventy this year -- index is up twenty plus percent.
We've cut job losses from 600000 a year ago to 111000 now.
Why -- rates below zero I don't know.
Other then the Fed's desire to keep the yield curve steep to -- the banking sector.
So they can earn their way out of these problems but if the world's biggest economy after this past year still -- rates at zero.
Then we have other proms and I'm not aware up.
Even bears on the US economy for awhile now and in my theory with this whole thing still comes back to this -- your election in November could date.
Doing so would they do anything before this election -- is that all about.
Wait getting reelected and then moving stuff around well -- still a lot of time between now and next November so there is some room for them to do something.
In today's statement for example people talk about -- you know we've -- extended period.
-- leave that in its matter wouldn't -- that he leave an exceptionally low.
That's the big -- rest of the fans even if there is exceptionally -- right in my opinion because.
They can -- to 1% over the next 34 meetings and -- we'll still be dramatically low right one is extremely accommodative.
So the Fed dug themselves in this whole like cutting to zero.
And I think they're making it worse the longer the week.
In somewhat normalizing it last December there was an emergency.
The emergence he's not there the fire is out and even though I'd perfectly knowledge that if -- still very uncertain times but.
Does the benefit of zero interest rates outweigh the costs today.
Is a low cost of money the cure to what ails us and I'm of the opinion no.
But it's not right -- I mean this low -- of money what is it doing it's allowing the banks to borrow from each other.
And then banks go invest this money somewhere else it's not like they're putting it back in the market at all.
Right I make the argument that if they actually raise the Fed Funds rate.
Well banks would be just taken the free money -- mortgage backed secured -- buying treasuries they being.
More -- to say you know what.
I'm not getting a free money from the Fred I need to go out and -- to try to get some higher -- -- so the Fed thinks they're doing the right thing I think they're doing the wrong thing and I was mocking.
The person -- -- time today because.
To me -- -- Greenspan the arsonist.
And then Bernanke then goes to get the fire truck puts -- -- -- everyone thinks he's a hero know him and Greenspan with the fire by this ridiculous monetary policy that.
Created in my opinion.
The entire credible.
You think that the market the market is separate from the economy and -- it's pretty obvious from what we've seen we've had such great growth in the S&P 500 since last march at the economy really has not -- -- is actually just started.
Getting positive GDP growth.
Are we yeah.
Gonna see that catch up is the market gotta say you know what -- too many -- too fast let's catch up with this market that you say is gonna continue to be sluggish and most economists think -- and it's going to be slow for the next couple years.
I think front cure earnings and economic improvement standpoint we've discounted a lot of good stuff in 2010.
I think that has influence the market has -- this -- NASA money printing by the fact.
And this kerosene that they thrown on the fire.
If today he basically leaves a statement on change sounds a little more optimistic on.
The economy still sounds very dovish on inflation and says that Richard stay exceptionally low for -- cemetery well -- keep ongoing because he's -- -- the -- is like.
I'm going to be.
Easy yet for longer and mom's gonna throw more kerosene on the fire by kerosene eventually burns out though doesn't it -- and and and it's always connect and badly by.
Since -- policy can still bearish on the the US equity market you're still pretty bullish overseas -- of -- bought and bullish on the reflation safer for the year because I think commodity price of commodities and gold in particular isn't the best way to protect yourself with us.
Money printing regime that we have.
And companies that are exposed to overseas markets the overseas markets have.
Much greater performance than the US market has -- in my opinion less risk because of the look lower -- what else could they have yourself for -- Well in in the short term it gets more difficult because the dollar has begun to to balance and and I thought that the David Bernanke actually talked about the dollar and its influence on commodity prices and inflation.
The dollar quite a -- that day and then you had a bunch of foreign countries coming out expressing their concern with the weaker dollar so I do think the dollar could catch a bid for the next couple of months.
Which would put a lid on this reflation trade.
The rest of the market is it celebrating.
The improving economy but we also have to understand improving economy doesn't happen in a vacuum can happen with higher interest rates and -- -- -- over leveraged economy deal with higher.
Threats here great to see you thanks for stopping by thinking if I have -- -- -- -- -- -- in the woods hit it always good to see him always great insights holiday -- not true test is gonna join -- we come back gonna talk -- when my favorite guys talked about the entire industry's got it down and get give it to you when we come back.
The -- of the homeless millions of tons less.
Welcome back to foxbusiness.com -- and burns housing starts earlier today.
All -- off.
But maybe not up as much as we expected -- Kessler is here director of sales.
And managing director ran mortgage is always good to see it.
You could definitely could see why would you make an announcement today October was it a disaster it's October was way down -- November of actually way up until we're we're actually seeing over the forecasters is exactly what we're looking for.
I'm mid -- has been since November 2008 so this is a great sign in this is really caused because.
The tax credit low interest rates I mean if that we keep going back -- that there's ever a time to buy.
We're look back at history -- the delicate it's a great sign if you're in the market but it's not necessarily great sign as a true sign the economy right because it is being propped up artificially in -- 100% -- artificially being propped up however were looking for stabilization that's always looking for now for months on end and even the past couple years.
2010 going to be the year stabilization.
I believe because of all the artificial you know propping up its gonna get -- right it's gonna right the ship we're seeing low interest rates.
We're seeing the government do everything they possibly can keep people from you know buying houses and looking -- hopefully stabilization and how you got from house is stabilizing if it's also want to take it away right pulled punch -- away at party.
We go back to where everywhere you potentially could see rates start to rise very quickly we'll talk potentially you're going to see rates -- got struck quickly got a question that's -- on the rates go up.
At that we're hoping that housing confidence is back because again the biggest fear for anybody -- either owned a home for the past couple years -- how much -- my house gonna drop.
Biggest fear for somebody buying houses in my mind at the right time if I'd buy today is -- a drop another 10%.
If I -- waited six months -- river might be.
I think what's gonna happen is over the next quarter the next couple months you have -- people are gonna realize the market stabilized.
And people to have more confidence the ones that are selling are gonna realize you know this do -- prices -- gonna drop much more.
-- buyer and realize you know what the inventory it's on the market it's gonna kind of -- off camera starts seeing you know people hold on rather than you know the fire so it's in the past couple years.
Let's begin -- away really getting down to six months and again that's our number split.
Now starts are going out -- we're building new homes and is that -- -- add to the degree that we still need to Whittle them without question what we're seeing is is the gluttony of the pipeline at these huge banks had is starting to dwindle.
You're distressed sales or foreclosures or short sales are -- come off the books.
We're anticipating possibly another wave of foreclosures if they don't do something with the modifications that's the big if for 2010.
You have a a huge amount of people right now that are either unemployed or have.
Been -- sides were working sixty hour work weeks are now working 35 hour work weeks of the monthly income coming into the household.
Has significantly dropped.
Those people don't wanna get away from their house they want to keep the roof -- -- -- the question of -- that but you need principle we -- you need a -- -- on the principle not on the interest rates in order to actually make a difference but then.
That makes a difference to the consumer right my principal is readjusted.
But on -- -- side then the books.
Those books start to take hits we're gonna see more bank -- then.
-- any modifications -- on the side the ledgers of the X the biggest thing you need -- and I believe in the principle reduction for the consumer but it's bigger payment reductions.
It wing into the situation we're talking comfortably afford the mortgage payment who did comfortably afford -- -- -- -- over there working full time when they're working the forty hour work we can now only have we all part time job.
If we can right the ship and again you're always delaying the inevitable I'm not saying this is fix its collapse for all time.
But if you can corrected for two to five years you're going to be in another cycle will say is cyclical it's gonna go up it's gonna go down.
But the key is over time you're looking at a chart that steady.
Rises as opposed to major fluctuations -- you might have a stock marketer or commodities market.
I know -- -- a credit card loans but yesterday Bank of America.
JPMorgan Chase all came -- -- said.
November charge offs were bad is 13% for Bank of America.
So on one side you have the president talking about lending more money and that's credit cards that student loans that is mortgages.
On the other hand you have banks saying -- nonperforming assets are still really high.
When will we need in the get out.
He's very very careful I mean it's it's scary to think but I think the president's talking -- Wall Street was talking couple years ago when they said gimme gimme gimme and they were.
Talking about these crazy mortgages -- date has won the feed.
Their funds well president's kind of in the same boat -- put your money out there put your money up -- the banks are being cautious because they've lived that they just lived it.
The regimes at the -- right now changed over because a lot of them are no longer there that were going through the last period of these crazy mortgages so I think you're you're looking yet.
The government warning to put more money into the economy the banks are being a little resistant as they should be.
Because we just came out of this huge issue with the foreclosures and and the crazy mind they were lending over the past couple years.
-- you know in your in your notes three million people currently renting a fully qualified and have assets to buy.
Iraq the what do they do it if it is it they don't want the deck as we scared them so much and to have only then did the key thing is confidence in that anyone who's potentially looking in the housing market right now has the thought of her head.
Is now the time.
Is it three months from now -- -- six -- -- -- two years now when is the best time to buy.
So you have all these people sitting in the corner saying you know I've got the money saved up I've got the -- I've got people have got everything.
-- say the debt and I think what you're gonna happen is as supplies are dwindling and let's that we get to six months and maybe we get lucky we -- -- a five month.
I think you're gonna start seeing people getting away pressure.
From there you know I think it -- the minute that thirty year starts to go -- the minute -- here and straight starts and that's.
How often their only problem with Dodd is it's not an edge I think it's gonna be going from five to five recorder 6% in a matter of a week and out how critical it -- -- -- if the government -- -- stopped buying mortgage backed securities okay now we're talking -- free open market for unite to look they are investors to the by the mortgage back securities.
Once they they have the fire sell -- sell the stuff.
So -- gotta buy the yields that are going to be offered.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You've got to believe this a lot of net going to be apply.
Well that's my thinking I mean did you think that you're obviously director of sales are right out there every day -- pounding the pavement did you.
Did you anticipate the government extending the first time -- do you anticipate that happening well and.
Here here's my forecast that I actually putting together a new report called -- a report out every Monday specifically referencing this exact topic.
I didn't believe the race for going to be this low for as long as they were but I did believe the housing credit was going to stay I think this is it come April 30 you have to -- under contract come June 30 you have to close.
That will not be extended.
The big question is how longer they keep these rates low for an -- in December to keep -- for awhile.
I believe probably the beginning of the second quarter and the first quarter of this upcoming year is when we're searching the rates go up.
But -- you would ask me six months ago I would probably figured January February but I was always on the beginning of 2010 now -- bags you know how much the Fed is going to.
Continue doing that -- little.
So despite the fact that you are a sales director and didn't let me start to feel a little -- -- this guy wants to sell houses.
You are telling people now he probably will not find a better opportunity to buy again I'd I could I go by the numbers yet -- at if you were to go for the past 3040 years you're not gonna -- housing affordability as low as it is not currency rates as -- is look.
I'm in the business the self I completely get that but it -- analytically look at the actual numbers that they are what they are and you're never had a situation where the government literally giving you money.
To buy housing units and eventually get into Alfredo -- the government paying you.
To take that mortgage and by the now -- -- the government is being idiotic and someone should take advantage of -- so you can write me a home for Christmas this year even I forget.
I'm and I can't get -- to -- SE thank you very much.
And let us all right now yet to tell me what caught your I did start sounding stuff I started to tell you because it did catch my -- would always catches my eye is the background on -- as we know Ben Bernanke chosen as person of the year.
By the time magazines like time magazine.
They left for Soledad it was on -- -- so this morning and it literally just wrote in -- -- had a banner and it was.
Also was Bernanke chosen as person of the year I thought what does this moment like Federal Reserve and guard mag I will let America west yeah -- -- it out economics illustrated I don't let's talk.
A surprise but that that's a big honor beat and -- It used to be it's not quite as well yeah I think it lost its.
It's -- -- was that one year it was like.
You that's an absolute disgrace -- it was weird round magazines that that we don't -- -- be can't -- remaining and the I think -- were trying to be controversial when India and they weren't controversial all they couldn't -- they facilities that you and look at.
But -- -- the runners up now the same -- brighter.
He deserves that I think yeah it Pelosi number three.
Oh I'm so sick of her and her over done Botox.
-- -- and now this city is just as vague as you but that's terrible as Chinese -- potentially -- It was one year -- as someone like that's very -- here.
Number one that first runner at general Stanley McChrystal leading the Afghan mission god love them I think he should -- it but what line and I.
-- bull by the way he's fastest man on the planet by far I mean kind of ridiculous.
Would interest me -- the list of who else mattered for instance Glenn Beck number two on the list of people who -- in 2009.
As of course is A-Rod.
The Twitter guys.
Tiger made the list no surprise at -- at.
-- -- -- again not -- -- ready that's what it's about what we did some industry and said it's about someone who is newsworthy and I should that that was really should be any different in the main list than enemy -- well I guess he's an idol had potential.
They couldn't meet it.
-- -- Gosselin on the list.
Most of the people that died though I think that's the -- again those are generally tend to be more important Farrah Fawcett I still send them out -- Cronkite.
I know -- and a -- around the world I would rather you switch those lists around I'm with you Michael Jackson.
Ted Kennedy we talked about Frank McCourt.
-- -- -- -- Natasha Richardson if you remember that was and -- this is Adam terrible.
William Sapphire -- -- very.
And again Soupy Sales -- sales that is it's depressing I know so we lost a lot of really important and we beat Arthur.
The beat we lost a lot of great people last year golden girls in the top of that all that other list.
Jon and Kate Gosselin can't just -- quickly people who made it in the past don't forget bottle was on the list one year and that one year it was the world com account in the FBI agent and the Enron exactly.
All that brought down all Latin and their -- -- magazine Rudy Giuliani was once as well person of the year Obama we got an -- joining us right now I don't exhilarating for time magazine is a more important things the usual -- -- -- those joins -- he wrote the -- -- and onyx and chill on this could have thrown out to you here.
You make a recommendation in this book not to buy gifts for her friends and loved ones is telling.
If I'm wrong and then explain your position on this one.
-- no it's not quite right I didn't say go ahead and buy your friends and loved ones because those are the folks you actually know what they like to you do okay dad dad is this.
You don't normally I only buy stuff for myself if I find something that's worth the price.
So normally spending creates a lot of satisfaction.
Gift giving is really different -- set out to spend fifty dollars on you since I don't know what you like and much more do you have I could spend fifty dollars and buy something worth nothing to you.
That's the problem with gifted and I've done a lot of surveys over the years and I found that people value the stuff they received as -- 20% less per dollar spent.
-- the stuff they buy for themselves.
We spent about 65 billion US each year on holiday gift so about 20% times that are thirteen billion is just missing satisfaction.
'cause of other people buying stuff for us.
OK so by your friends and loved ones -- -- you because you know what they want.
And -- they'll use it they'll enjoy it and -- get the words out of it if you buy things for -- people that you don't know.
They won't use it they'll return it may be what ends up doing is hurting the economy -- the that's the basis of the book right.
That's right although my view about what hurting the economy means is spending money without producing satisfaction after all the reason consumers -- stuff.
Is to get some satisfaction out of it if we spend 65 billion and -- not enough satisfaction out of it -- that hurts the economy in the sense of -- buyers.
You know -- always win because they sell stuff.
But we'd like to have buyers win two in the sense of getting stuff they actually want.
I understand your point about the returned merchandise actually that that is that they heard.
Two books across the country Iraqi People are returning things they returned and damaged the inventory then is not -- -- reusable.
It's a huge hit.
-- the same time though.
Did the business angle out of this there's a generosity angle to all this -- -- this season of giving this season of being kind to people the season of saying thank you for all your help this year.
So what is supposed to do.
Extend your hand and give a call -- and be done.
Well I do agree that there is a joy of giving and that's why -- can't just say don't give.
-- I want people to go ahead and give when they know what people want and when they don't they should maybe give differently because again if they don't give it all they've missed out on that joy.
Although I should say I don't think that the joy of giving justifies getting bad gifts.
You know I spent fifty -- something worth only thirty -- without some kind of a loser of the transaction you might say it's okay because I get thirty more enjoy out of that but wait a minute if I also got some joy out of giving you something you actually wanted.
Well we could produce more satisfaction so joy of -- important it means we should go ahead and keep giving intelligent ways but it doesn't justify giving things that people don't want.
Phil is this.
It just an American Phnom you that he's sort of -- -- -- worldwide as well.
Yeah I was surprised to see that not only is -- not alone so if you look across all the major industrialized countries there's a giant December spending spike and almost every country the only exceptions -- Israel to China and Korea.
Israel does have a spending you know holiday spending activity but in different.
Parts of the year.
But not only are we not alone -- frankly we're kind of small compared to many countries the size of that spending -- in December relative to the -- surrounded.
We're about twentieth on a list of major economies.
So that you know the good news is that you know we're not alone a lot of folks are involved in major commercialization of Christmas but the bad news is that when identifies a 65 billion spending issue in the US is -- 145.
Billion around the world.
And 20% of that is 25 billion and missing satisfaction worldwide every.
-- sea -- -- I have this theory that it.
The holiday season really should be only for kids under like the thirteen fourteen after that no -- need or deserve to get this is really all about kids this time here everyone else to get the obligatory thank you I appreciate it and just be nice to each other all year long.
At the same time though us going out and spending like idiots for this holiday buying things that don't matter just about anybody.
Is a huge -- the economy at the end of the day and even -- the net returns.
They still are in the positive based on that stupid things -- -- You know -- he's spending is important my view is so let's have a spending but let's get some satisfaction out of it so you know again keep giving to the kids.
For folks who don't know what to do you know gift cards they're not imaginative but they do allow the recipient to choose what they want and they're and they're really really high -- most wanted to gifts that keep spending high and they pretty satisfaction sort of somewhat attractive.
It would be nice if they're unspent balances were given to charity instead of -- ending up with retailers.
But you know we'll say it may -- world peace what happened -- I held on both my gift card advocate icing makes signs I think only gift card should be given.
Hit tickets to a lot of people agree with you and some people say they're terribly impersonal and I agree it's probably not the right gift for your spouse.
But I think in those situations where you have to give something that you have no idea what to -- its way better than giving something useless and does it you know to keep spending.
Still love you unable to put a dollar figure because he talk about the joy of giving that's an intangible.
Awe as is this stressed that some people fielder and -- holiday season and the lack of productivity during the month of December because they're so worried about Christmas.
And the holidays in general -- to go to put dollar figures on those intangibles.
I really haven't I can tell you though there's a big and not only is their big spending -- that is a big bulge in the time spent shopping not surprisingly in December.
And 80% of that bulge his women in the US.
So you know the question is is this enjoyable or is that a burden I'll let you know -- the viewers decide for themselves but I suspect there are other costs of this besides just getting stuff that we don't.
One look at it is the cooking bolts to my goodness Christmas cookies man I'm sorry there's -- -- as well so thank you so much for being with us.
Thank you thank you Jill -- wild -- up that's an X com corner my mother.
Is the real quick little story related is a Sunday school teacher.
And she had all the kids around and she told -- he was trying to teach them lessons and if it is better to receive -- to give and it she caught herself afterwards -- -- -- -- -- -- -- wrong.
Think all those kids now for the rest of their lives that does -- in in -- Brazen in their mind if they are all day that you have to give back that stood up and find the setting and -- it's too late now -- once you once you start talking to you know.
Six and seven year old you teach him a lesson like that.
Editor received -- to give it that Josh has deliberately at daybreak will be right -- -- when he gets about the fun.
-- back foxbusiness.com.
Live Tracy Byrnes Chris -- it's about 1230 on the East Coast 930 on the West Coast.
You know we had to speak Intel.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So they could be potentially you know releasing song is about is that if we get any information we'll let you know what's gone on.
In the current.
Attract all Taylor -- my guy the most recent 2010.
Inductees into the rock and roll hall of fame where announced.
And here are the five that are going to be going in Alabama.
In this you know reason.
The question defined rock and rule for me please -- -- come on they aren't they -- I'm just sick.
That was going in Genesis sure flyer for a ballot hall of Famer.
Jimmy Cliff now here's another one Jimmy Cliff and his -- -- I love Jimmy Cliff in the early seventies but again rock and roll the next one is the Holly's.
He ain't heavy he's my brother and I and that's.
And the stooges now again you -- with the stooges on in with the U pop I don't know about the stooges so this is my point.
Yeah I've got a list of others that I think are more deserving and some of these on this list I'm.
Pomp and -- that list if you gonna put in Jimmy Cliff LL cool.
25 years after your first.
Recording was put out that's when you become eligible let the at least fifty private equity 500 voters so well yeah not qualify me as well as the first few days off like this Jimmy Cliff gets it -- -- -- is not light -- really.
But wait what about -- it -- ever.
They'll have what what.
-- -- Well is is Jimmy Cliff rock and roll is apple rock and roll Abbott is not a lot on roll nominee yes my point exactly.
Three after which he did great solo things is more Moroccan rule and -- mr.
Obama you've got L cool.
Can't -- it even if this is a bad day and -- musically no not kiss musically but as a rock and roll band.
That the rock band it's all about being a rock star.
-- star actually I was unaware this is their first year this is their first your husband.
Been eligible for a couple of US that I thought Obama got the Chicago if you -- -- there Chicago has to be considered rush and Def -- all eligible this year all I think should be.
Yeah there was some of those again Holly's I love these heavy -- heavy he's my brother I could hit all day long -- it to you whether it in the next break.
But I don't think they deserve it more than these other.
Such -- -- Def -- actually one of my favorite bands grown up and we could argue this whole de Carlo.
-- -- -- -- -- -- Amazed member of the general Allen lost his arm Def Leppard and around the grounds on the hysteria to where -- what's on speaking it is there it is market is there it's going on right now we're up 33 points with moving this market.
Wouldn't quite call it missed Eric's if I think that -- It's little slow down the street.
Beer is the lady I guess when you don't have a job you drink Boston Beer company -- an -- and is the -- Sam Adams.
Raise its 2009 earnings guidance for the second time in two months and improved very operations lower energy and commodity costs Susan about that.
I Nvidia -- an idiot because they are up because Intel is down so the US free Federal Trade Commission is suing Intel.
This came out earlier this morning alleging that the chipmaker has -- illegally used its dominant position to stifle competition now of course all the competitors are saying.
Go get them Nvidia being one of them in the stock is -- -- is up today because of that Nvidia actually coming out saying they applaud the FTC's.
Actions against -- Number of course not any we've been talking about housing -- them so this is why I picked it they're -- to report quarterly results after the bell the stock is up ahead of earnings.
Number two little company little company did -- media -- kind of like just the name needn't.
-- media makes you giggle it's gonna sell 60% of its online gambling software business this is a big online gambling.
So the presented by Internet but yes still megas gaming online gambling a lot of people -- down in DC.
A -- in particular some Pete poker players trying to legalize online gambling town eventually will be able to revenue sit -- -- love up it's I don't buy it and here's my little lab tech for you good -- -- -- pharmaceuticals.
Was up like 60%.
-- Again I'm very positive preliminary -- results for their hepatitis hepatitis C treatment 60%.
I don't know why not like why not sell this.
And that's (%expletive) you at 60% and Larry said legalize it legalize online gambling gag that's actually show we should we should -- a whole show on whether or not that's worth it and -- -- revenue is out there.
It is a huge moneymaker if they do legalize it I guess the question is how do you prove that.
They're not you know have underage kids gambling -- -- went -- how do you stop people from gambling their homes legalize.
Lot of things that that that's the question legalize marijuana -- legalized gambling you legalize other things that could generate tax -- realize that it's all about money Leo and have their joins us right now president national association of online investors -- our money.
He's got a few ideas that can make you a little bit of money.
-- -- -- I'm doing well thank you very much -- and what what do you make of this market right now first of all we're our what we seem to be just in a holding pattern we can't break out of -- this tight range in the S&P 500 UCS freaking out anytime soon.
Well actually don't.
Think it's just too much uncertainty in the market for people wouldn't commit one way or the other I really don't expect any.
Significant changes until perhaps February of this year -- that could either be.
-- fairly steep.
Decline or it the market could continue to go up is just too uncertain right now.
So -- -- -- you interviewing casts are you.
Taken some small that's.
Want to -- some small boats I think there are some interesting stock plays out there and I likes specific DTL -- as well.
Yes so let's talk about that one -- -- to get an attempt out at me with your vanguard emerging markets ETF.
Everyone's still love in the emerging markets these this is just seems to be a play that's not -- -- Well that's because we've got.
We've got emerging market countries that have projected -- growth rates from 78910%.
Whereas the growth rate -- in the US for next year's they're expected be two point 6%.
So you've got the advantage.
Going for higher returns -- -- diversifying away from US -- so -- a couple that -- so there.
But that I still think it's got legs as far as -- -- come up 60% this year as I can I think it can go -- EEN is another -- yet that's for emerging markets for how investors take which which ETN.
To go within a situation like this we're -- have multiple ones that look like you know they may give -- the same exact at the risk profile.
Most DT us track the an index and both the -- and BT -- tracked the Morgan Stanley emerging market index.
What you gotta look for is as the fees in the vanguard is point 2% I think he yemen's abouts.
Point 72% so what does that they -- the same thing -- pay more for the for the honor.
Yeah and then that's pretty notorious for keeping their -- really -- Welcome another winning your picks -- -- a third of all cell phones have Qualcomm chips that's pretty big selling point.
That's a pretty big selling point minutes gonna get.
The -- stone look better it's like you say about 13 of cellphones -- have.
Have Qualcomm chips but as we move forward to the 3M network which is next generation network that requires higher bandwidth.
3M is going to be in just about all of those phones they have so many patents.
They have so much technology that is built for the the three -- generation.
As that population expands and it's going to explode very soon.
I think -- -- perfectly to -- and take advantage of them.
-- actually had a friend who went to school with -- that is Ph.D.
and -- you can never figure out how under the go to school for seven years -- get a Ph.D.
and antennas but.
You like a company that dumb answer -- it's true you will you believe that people can actually make money on May on a lot of cell phone -- accompanied on you.
It is absolutely the bottleneck right now in.
And cellphone usage -- says cellphones become little computers we've got to bandwidth problem that is.
Actually really starting to affect sales of cell phones people people simply can't get through the -- Data band with requirements are so hard.
-- you talk about American tower -- is AMT actually the stock actually is very pretty it's a very pretty nice sorrow over the last over the at this last year.
You still think it's going to keep that.
Pretty trend up -- Well I I don't see -- -- -- I just mentioned that the the self form band width is really starting to choke right now.
Well one of the ways that you get rid of this bottleneck is put up more cell -- -- that's let him see.
That's -- American tower does and you know that don't have to do a lot of research and development.
Honestly simply have to duplicate what they've already got so it's fairly.
Low cost -- but -- that the demand is incredible putting up -- cellphone -- like putting up a little oil well it's simply -- data mining.
And it and you get tax break.
You know you get a tax break as well.
Yeah well at my house.
But at the no contact -- and your -- Its debt.
He also you can Quanta Services TW -- we've been talking a lot about Smart grid lately and things like that I imagine that that any investment you make in a power company.
You're gonna have to deal with not only Smart -- certainly clean energy in it as well right.
At that yes.
I've looked very carefully clean energy investments.
And whether it's wind solar powered -- -- etc.
see they're all bumping up against one thing and that is.
The power grid the power -- the United States is.
Is deteriorating and it needs to be fixed so for any of the screen technology to actually take off we've got to have a power grid system that's updated and works and that is what meant to does.
But really -- the largest builder of high voltage electricity lines.
And I think they're looking to get their position to get a big -- the government stimulus mountain.
Women -- -- pigs or any cell phone world energy type world is that what you're focusing your interest -- I mean any consumer staples on your watch lists in the discretionary is are they dead for -- while.
Well I wouldn't say that what when you're asked to pick the top stocks -- -- interested in yeah you've got to leave some off.
I think in the year coming happens to be very uncertain when things we got -- follows where it is government going.
Money going to it's going to the renewable power and as opposed to an obvious play like solar wind -- -- -- let's play one that they all rely on and that is the power grid and that's the services seems to be the major player there at six.
All the money rightly -- -- -- -- -- that a president of the national association of online thank you so much for being with us today.
-- -- -- -- -- -- -- -- -- -- he CNN tennis known to tell you another -- does that add to wrap this whole story up.
Was actually -- worked -- -- the same -- with this guy and my brother and I tailgating Georgia Georgia Tech -- biggest rivalry game of the year -- if he walks -- with his backpack and says what -- you guys doing out here.
What are we doing out here would tell -- for the biggest game of the year what do you do and all my way to the lab.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Fifty times more money that both of -- -- together right now designing antennas of course we're gonna break we'll talk about money he makes.
But I don't.
I'm -- about business dot com live Tracy Byrnes -- -- about 1240 on the East Coast 940 on the West Coast good morning -- of about thirty points right so we're talking all the time about all this.
Stuff and -- -- -- -- don't understand it.
Thankfully -- -- -- here chairman of the NI CPA's national CPA financial literacy commission.
Big push to get people to start to understand and the push actually begins when they're little doesn't it.
Absolutely what we've learned is that young people today.
Really don't have a grasp of basic financial literacy basic how to make basic financial decisions so we're pushing it back now into the schools and two younger people.
To get financial education involved earlier that when they -- -- adults and they get their first job and they have to make life decisions they have some.
Background to make sound financial decisions.
Jordan isn't the problem with schools at the same problem and everybody has these days it's money.
I mean their budgets are being cut.
Reading writing and Rick arithmetic disorderly let's get down -- the core of what we do and trying to do that.
Art is being cut physical education is being cut where's the funding and -- come to add something to the curriculum on top of the basic reading writing that they which by the way we're not a very good job of anyway.
It's a good question and I'm not sure there needs to be in addition to it down.
Money is basic arithmetic.
There's a way to build in sound financial decisions into the basic arithmetic as part of the math curriculum we have they have curriculum that was developed called feed the pig for queens.
Which was developed for fourth to sixth graders and it builds in basic math reading writing and other skills that financial literacy is getting layered on top.
Without having to be completely separate initiative.
I think it's a great idea and I do think that kids should start to understand it more and more I was a -- I had my NBA in accounting so I am one of you.
And I think more and more actually then think once you're done with the kids you work on high school and college and I really believe there should be -- -- More for kids just to get their degree in accounting because you understand so much more you don't have -- -- one.
Everything she get a degree in accounting and you -- and the put a pocket protector that's what he tells me it's not true.
You can you just -- to understand so much more and that could actually help them pull economy.
I would agree and I didn't -- my pocket protector home today just for that really tell me.
Don't tell me -- bad.
Only good I don't and that's I think it's very important the -- -- -- and accounting are fundamentals that can be useful for personal.
Finances and the basis for small businesses had a lot of what we do in everyday life has a basis and accounting Simon agreed there.
It did the -- -- to -- that I took you know classes in high -- and holding an age myself here shorthand.
In the business class I -- -- an accounting where you do NT counts and that that I that that doesn't help in real life.
Let let's just face it back at -- -- he counts at home.
Is there a way to sort of take -- away from the hard core accounting where if you wanted to be an accountant and you have to you know do GAAP statements yes.
And take it to personal budgeting and things like that because I think I would -- more interest in high school.
Had been -- like that as opposed to -- -- counts and ledgers and all that stuff.
Absolutely and you know basic financial literacy talks about.
Budgeting saving how making decisions today will impact.
Time value of money.
Basic financial concepts that have a basis in mathematics that you can really make changes today CNN -- for instance if we teach kids today that you know they get allowance -- Money from -- -- whatever they take two dollars out of that and put it away how long does take that to become ten dollars and a hundred dollars and what can they do with that.
And how interest works and savings and asked you layered on top of it and it doesn't happen to be the T accounts that you hate.
But -- think it went and it -- just rode in with the same thing a lot of this starts at home.
-- my kids get an allowance and I am at I stole -- from Dave Ramsey I'm not that this will break my people a dollar goes sticks shirts.
A dollar supposed to go on their bank and then they get the remainder to keep themselves they'll get that much clearance and -- left and a whole heck of a lot but nevertheless it lot of this have to start at home right because these kids are bombarded with.
Let's see through a hot Christmas I want an iPod and I want I need the new iPhone because on the friends haven't -- you trying to teach these kids to budget and meanwhile they're asking for our.
More expensive toys and we.
I agree with you in a good way to get -- family involved is on our web -- feed the -- dot org there's a family financial goal.
And it's you print out it looks like a little pig and you take -- to a coffee can and the family comes up with a savings goal whether it's a movie night pizza night.
Buying a new dvd whatever it is and everyone in the family has to contribute that -- -- school whether it's the dollar from their allowance that they have to put away and mom and dad puts in a few more dollars.
And then what they say is if we need a hundred dollars -- -- -- ten how much do we have to say it left the new building basic math you build and saving habits.
And when it's something that you can see mom and dad -- -- something that everyone can do together.
And -- you experience the tangible reward of that pizza night ice cream whatever it may be like that I really you really start to see the benefit it's a good way to get the whole family involved and to be honest as a parent of two young children.
-- that need help saving -- so we can just a reminder in the practice.
That does that feed the -- spot for the guys like trying to get all the money that fell out of the bag of money truck -- -- that thinks it is -- anyway yeah I think -- if you go to a wedding in the summertime -- to go to a wedding in the summertime and a -- but -- -- would be -- so into -- that out -- we'll get to the soup which kept the -- pocket protector with -- I'll -- that -- -- obviously see -- and some -- when -- out there as well.
How does this benefit accounting firms that that's an acidic.
In our viewers and there are a lot of cynical view is that we have.
Would say it is the way to really put a lot of almost stimulus money into the pockets of accounting firm's ability going all -- schools and say you know -- it's.
Now we -- now we're gonna help you guys would teach you and we're gonna get paid that is that.
Absolutely not -- -- absolutely ridiculous the financial literacy efforts -- -- -- CPA has been behind -- 360 financial literacy and now feed the pig which is an offshoot of that.
Is our way of giving back something you know we have a very.
-- standpoint as a trusted advisor and it's our responsibility give something back and to help.
-- the next generation of savers the next generation of leaders that are gonna develop businesses.
And if the economy and people a whole are doing better we do better plus there's an element of giving something back which is important to us as a profession.
Jordan how has the profession fair -- this whole thing I mean are we seeing.
More people -- coming into the accounting field are they leaving what did the whole Enron fiasco scare them off or are.
I know for a while there was a big push for forensic accountants and what's the stated -- Of the job market these fees for accounts I think it's like everything else that.
-- runs in cycles after the Enron and that dot com.
-- where there was money to be made everywhere else.
You know accounting wasn't as -- people see is pocket protectors and -- -- of people didn't want to.
Go into that and and work long hours and hard hours to get ahead we're starting to see stabilize again -- we have a lot more people -- like everybody else you know the state of the economy has an impact.
Well I'm glad you like a calendar.
Accountant cowgirls and yeah I guess -- -- -- accountants.
-- -- good to be good okay.
You -- my at least twelve.
And if you could be one of them at daybreak when I've been good to see by the way Jordan thank you very much aren't that long I only would that -- with prominent.
You mean I think this thing out and save this summer decided instead -- -- -- -- mom and -- spent a lot of money you're right they need to -- tennis and women.
What is -- -- everything else next feel -- -- at home.
You know that -- -- and it.
What about the foxbusiness.com.
Live Tracy Byrnes Chris -- ten to one here on the East Coast -- -- down at the NASDAQ covering.
This Intel story for us.
So what's the latest Sabina I know there was a call at one to be getting any information that had a decline 1212 on -- and none.
Yes out -- well we got some and it.
Some color we an Intel made a formal statement.
Earlier on today it on -- call it didn't really deviate much from that statement though it did give us a couple of bites of information.
To relate to you including that Intel believes it has not violated and a lot.
That they case against it is misguided that is going to spend millions many millions of dollars.
Wasn't able to quantify -- going it is going to spend and legal costs defending.
Eight -- all of this is of course in relation to an FDC allegation this morning that suit they came -- -- Intel engages.
And these so called threat and -- award saying that it threatens.
Apparently it it started incense.
That PC makers this threat as a negative connotation do but in cents.
The PC makers -- -- -- and Hewlett-Packard.
To work exclusively and only with Intel and as a result -- gets better pricing.
And -- sense these PC makers from working with its competitors and the list goes on and on.
Should money this in this.
It's just seems like I may be wrong but you -- you've been down -- the NASDAQ so often.
It -- let me get stuff like this all the time maybe not this serious -- maybe not this big of a deal from the FTC but it seems like.
This is a topic that is of conversation.
Every three or four weeks or so yeah.
Well it's not that it happens all the time but it happens to the Intel's and then Microsoft's of the world.
The biggest players with the biggest markets in market share.
Tend to get more highly scrutinized and Intel has an 80% market share of chips in -- industry.
And that's a result antitrust regulators are and why not just in the United States but in over an international stores as well.
-- but -- microscope on the company a little bit more closely in the EU levied a fine of a billion and a half dollars over the summer and various other agencies.
Across the world not just in the EU outside and that also looking at my Chris.
Intel and its practices.
So this is I guess it it's -- in this sense it happens to the big big big big he admits but it's not that comment because this is pretty serious business.
She might reasonably you document and -- talk to them all the times they have any legs.
I -- listen if you look at the stock price today it's only down one point 6% but he a look at its rivals AND Nvidia these stocks are up 5% so.
Missile of -- it -- -- that makes the message here and what people are saying is is that this is not and it really.
Have any impact on Intel's market share and that in -- Intel really isn't going to -- -- making a lot of concessions that the FTC is looking for.
That -- said if it doesn't make any sort of concession this intended this.
Will open up the door to its competitor so -- it makes any sort of changes it has a positive impact on competitors but how.
And how wide and far it extends and it changes that -- gonna happen they are yet to be determined.
I think the more market -- being sort of reaction could come if the FTC doesn't facts have some sort of settlement to levies charges against.
Bonnie thanks good to see guys thanks to -- Shibani -- down at the NASDAQ and he is the latest on Intel what's going on -- -- -- -- to deal with the socket that's what I initially saw this morning it's not -- didn't move all that much -- -- is pretty serious though because the first place was -- glance over I said.
Okay FTC this is that another one of those things threaten lawsuits -- IC's all time.
But I guess it could be pretty -- but.
But this stuff takes forever to do you know it's still right in the -- we just heard today to -- European Commission finally settled at Microsoft over their whole browser antitrust case has been going on forever now so.
This is a story thank got for -- initially covering for awhile.
Right you don't have forever you only have two weeks to buy a Christmas presents and lands you an office here editor in chief of PC mag dot com is gonna tell you what you should -- what you shouldn't buys.
This is great stuff and you go from.
-- you talk about cell phones TVs.
To even from operating systems -- were just talking about what Microsoft you know what to -- But the by now I'm never throwing out your notes by the right on that list.
I am ready for this list let's first of all he does some things here bilateral -- -- -- wanna go through all these at one time or whether you wanna do and as we go.
In each individual mortgages so walk through -- -- -- generally what they do here is like trying to explain the things that you should avoid in the -- categories you send things you might consider and then the things that you should buy.
Yeah I started with that -- quarters because it's still -- hot item and I'm telling people.
Don't buy -- quarters that use tape.
Most consumers is too difficult to get the video off of those -- Cortes today am recommending the pocket cam quarters as the Kodak Z I eight.
This is a high death -- -- it shoots it up to 1080.
It shoots onto an SD card it has a little cable you can point it might into computer.
Dead simple to get it onto your computer with friends 179 dollars also a lot cheaper than what -- -- for a tape of the cam -- Also.
I'm a little concerned about people buying some of the known name brands there's a lot of them coming out in this some of them out there already is like the -- cooler.
It's called the cool -- it's like one of these no name brand ones that doesn't have some of the features doesn't necessarily connect to a major book retailer.
Does not wireless so of course what I'm recommending.
Is the Amazon Kindle.
The the Barnes & Noble look as good as well but it's not available right now Sony has the -- also good.
But the one of the great things about this in addition to being able to read this on this great screen is that.
You can download books wherever you -- are.
You finish something illegal I'd really love this -- I wanna read another book now.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And then we've moved to another area that's of course also very popular we have MP3 players now I am recommending that people do not get -- name brand one trick pony MP3 players that do just playing music.
That's not always a very old school.
Good luck giving matching a teenager they may just throw it back at you -- it's like the iPod nano.
-- -- actually does a fair amount about -- actually does more.
It plays movies it plays movies right I'm talking about she plunging at a Toys 'R' Us.
Yet you've got to be really careful because there's some.
Where all -- -- the little screen you know it is playing music but what they expect -- they expect interaction she got the iPod Touch which does everything and by the way is also being sold by apple.
As a gaming platform you also have something -- -- sort of -- maybe by it's the Microsoft Zune.
This is the Zune HD and this has a touch screen is interactivity I have no idea what the screen is gone dark on me made the kind of added that -- other it is.
To touch screen interactivity.
HD radio so it does a lot of different things.
290 and -- for the most of for a 32 gigabyte model you can also get -- like 129150.
Us old model with eight gigabyte I was.
I'm surprised to see this on -- me this because when it first -- and it got hammered nobody -- -- is it is the second generation they look at the -- -- -- now it's gorgeous gorgeous touch screen it's -- it works well.
You know and it's for anybody who doesn't want to live in the iTunes environment it's a great choice of real quickly on that -- that always concerns me.
For example the Droid phone you know on the on the Verizon -- about wanting to do -- its first generation.
Oh yeah definitely a first generation that makes so many changes -- -- next generation -- this is very true but you know what.
Phones Smartphones -- really unknown quantity and that many of them are variations on the theme -- -- they don't have know how to build QWERTY keyboards and don't have know how to build touch screens they don't know how to work with the networks.
We have an -- applications so.
The Droid is.
Part of a generation of android based phones basically and I will say that the Motorola Droid is the best Smartphone on the Verizon network -- now.
So that's a good that's obviously good gift for somebody who's on the Verizon network if that's what you want.
You know the feature phones so that don't do much again.
And by the cameras as well you've got the camera's ability about Cameron writes -- a lot like cellphones Smartphones a gazillion.
She's from aren't there well the thing about about.
Cameras now is that -- -- a lot of gimmicks come out.
There's there's for example a camera from -- -- that was built in projector that's really cool except that it's kind of -- gimmick.
Most people are going to use it makes the camera fatter makes it bigger heavier more expensive.
There's you know this also one with 3-D from Fuji which in some 3-D.
I'm trying to shoot -- and -- spy -- -- -- cameras on phones getting so much better they are getting better but they still they don't compared to this and I want to show this might need be by this is a Samsung dual view.
The only reason I put on maybe is that it has kind of a gimmick.
It has a screen on the front don't know if you consider that I can be and yeah me it makes it more expensive it also stores to -- -- -- card but here's what it's for.
You anywhere now be -- that.
-- -- -- -- -- I -- I -- yeah.
Well now you can rein yourself so so that's my husband thought I would bet dollars but yet that's not -- that's -- When he wrote recommended the one you recommended was -- Canon PowerShot virtually.
Any model of the Canon PowerShot.
Because they make excellent cameras the images are great.
Every year Canon wins on service and reliability report they win an award from -- leaders -- -- -- back -- these products -- -- long time and it's you win the award.
That was saying go to PC mag dot com the article is what not to buy in 2009.
Good to see if that's -- this and bring you.
My -- -- was researching that are easily passed out all those goodies and yes there's not you just I.
I get them the FM camera jostling gangster today I've got to take a break we -- we really exhibit that.
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