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New this morning whether I was well rested as it yet until I woke up this morning and then I wasn't -- an 8:4 o'clock in the morning hello -- do.
-- back to work.
We ought to do it though we all have to work just the well I'm sure that the I know the viewers are thrilled to have you back as I mentioned my brother for one is that the and that's the reason why he watches -- with all due respect I love my activities have you but I think he's anywhere I -- you -- -- -- it was his sister but the fact that it's about let that slide.
I don't have won by buying my.
Ben Bernanke is speaking right now he's -- and it's a political circus as you might expect.
It's all right senator from Idaho senator from Massachusetts senator from Illinois -- -- -- turn.
To yell at me and -- tell him it's his fault for everything in you know it's basically which again -- we expected.
I think they're wrapping up pretty soon -- so but it bit the big story is whether or not he will be reconfirmed.
Everyone pretty much presumes he will be down last night we heard that there might be some opposition.
It's so Bernie Sanders at a independent from Vermont believe you're not coming out saying I'm not gonna vote for him.
He potentially has a little backing.
From binding -- -- there's a few out there I guess net net candidates is a lot of no planes then we're aware -- though I guess the question is all along and we knew he was up for me.
You know to be reconfirmed why now why the day before we start making noise.
-- now and at the end I guess -- I'll -- you were waiting to see if the president was would indeed nominate him for his second term and there was some question as to whether that would happen and once the president did that.
You know I think at that point in time it was a formality going through the -- I think that they were definitely -- confirm him and his second term will begin.
-- February but now you know I mean everybody can have their own opinion as to whether he has done an adequate job.
In terms of trying to get us out of this recession what he what his role wasn't in the getting -- into the recession to begin with and everybody's got -- The other own opinions about that isn't that Monday Morning Quarterback and I know it is there's a lot about things going on today's -- the markets right now we're down about ten points he has been sort of also waiting -- between positive and negative.
We got it sort of the same thing Tracy.
Good news relatively good news from on the jobs right and then relatively bad news that the guys send data came in on non manufacturing yeah.
What -- the market down that we were up to these are the day for OK not great but that pulled us down that I send them of the manufacturing numbers it's.
You know what if you're not manufacturing product that's not a positive sign going -- I think it's a reminder that this is -- still shaky economy.
And that we you know we get constantly you know that -- -- mixed data now with the economy that's in housing was -- manufacturing -- -- jobs even though the data isn't isn't necessarily so makes.
On jobs and we're probably not gonna get a whole lot of mixed data tomorrow.
When we get the nonfarm payroll Porta -- more of the same Thompson wanted to hear chief investment officer on the -- group.
It Tom thumb what first what you make of Bernanke in the job that he has done I guess the first part.
How much fault and we really put on him as far as where we are right now in the economy and what has he done to -- helped get us out.
But I think he's done a good job and in trying to get us out I don't think he should be blamed solely for getting us into the problem I question whether he's gonna stay in the job.
Even if he gets confirmed if congress strips the Fed up too much power.
And that's something that I think with -- pay attention to say you're saying congress chips that of -- -- Bernanke walks.
Why -- but yet think how realistic do you think that it's.
As of now I I think that that's better than 50% chance yet.
At the end of the I think Dutch program probably won't get through Frank's Barney -- program will that if we get some of of Dodd stuff in there could be a problem.
So that job becomes like many CEO jobs in the financial sector not exactly a -- -- and -- -- not for the money going to -- and we need somebody there.
All that really wants that job and that is going to be very good at it now because he lets face them and he's one of the smartest guys in the world period you know he says smartest guy in the room smartest.
Does a really Smart guy you need people like that in these roles and if they're not gonna pay them not gonna give them the authority responsibility that they need.
Would you think that should and -- and you need the regulatory support and if you take it away if that's the problem so little to lose next Bernanke goes who do you put it.
Who cares at that point that I'm really officially giving that you need to find out who's going to be in charge of of these new bodies.
That's that's that's the important thing if the Fed is only responsible for monetary policy.
And employment then that's pretty fat although it's not a simple -- that's a lot simpler of job.
Will either way the Fed is still going to be in charge of at sitting all of this is stimulus and all of this so liquidity that they put into the market at some point in time.
How important is whoever is going to be a Fed Chairman.
Moving forward that.
They give us some sort of a strategy because it seems like we're just they're just putting it off the -- -- at some point I'm hopeful pulled back it.
Well they started you know they've they've already stopped buying treasuries to -- so that was the first -- to -- they did -- reverse -- today.
In order to.
Test the system.
Which tells you that they're getting.
-- it at some point it's not going to be this year for sure but they're gonna gradually start to.
Take back the liquidity.
There I think they'll be the last ones to raise rates we've had Australia raised rates three times you've had Israel raise rates we've had Norway raise rates my guess is the ECB will raise rates before the -- laden.
But the and I think we get need to give the Fed more credit in terms of of announcing -- -- -- strategies than than what we're giving right now look at it really the the issue with with Bernanke and it's a serious one is that.
He is deathly afraid of the depression.
You know that was as you know that's right that's -- academic back -- And he's you know fortunately I think for the markets and probably for the economy he's going to keep interest rates low.
For a very long period of.
We had some headlines this morning that back with Ben Bernanke himself said that they -- he was confident we have the tools to withdraw that we must be ready to withdraw in a timely way.
Is the question though whether or not they have the tools.
More about do they have the political backing to do it I mean we still have a White House very involved in whether or not we exit.
Right well -- loses interest in that we had 450.
7000 -- was the number of additional employment I guess that argument -- and and it we're also having the job summit today and then do the job summit may not.
If we if you know if we think about how long you know things take the work through the system we've created a tremendous amount of of wealth.
Because of the the increase in the stock market not since March but since the beginning of the year.
We're about 34% in and we've had a lot of gains in in the bond markets as well so all of a sudden.
We have extra it.
But is that because of all the liquidity -- injected in the market or is it just because the market goes through economic ups and downs and here we are.
It's it's that if he can't divorce to mean we -- we had a unusual recession because it wasn't led by consumption of lead by fear.
And then it was the banking system simply not function.
And so to you know to get out of this.
We can't look at normal tools we have to look at abnormal things and so this excess liquidity it's not just from the US globally.
So it's -- -- this is not an isolated problem but the the problem is that it's not a coordinated exit.
And that's what I think we -- we should be focusing on how do we get coordinated.
Exit because that we don't.
Then you gonna have I think a significant amount of pressure on currencies.
So the Fed is the last to move say they move in March just first.
My birthday and -- didn't and the ECB moves in January worth a year ago.
And and this morning the dollar was quite weak in the Euro was around 151 I'm not sure where it is now but once the Fed announced that they were doing the reverse repo.
The Euro started fall even -- we got back down below 151 that I think that's a good sign that if the Fed were to go earlier.
That what the current market's anticipating that would strengthen the dollar and -- take a lot of heat.
Off of China and a lot of heat off of the administration in terms reckless deficit spending and so on and so that would.
Strengthen the dollar what does that do the stock market then -- even even if he gets limited the short term because what we've seen.
Is the stock market has enjoyed games because of multinationals and weaker dollar in the energy plays it's certainly gone into that.
What is an instant turn in the dollar like you're seeing a surprise the rhetoric and they're not gonna raise a quarter point and a raise rates well what does that do alone.
Greenspan started raising rates he did not skip.
The FOMC meeting until -- got the five and a quarter -- we went from one to five and a quarter.
Bernanke is not gonna raise rates period until he sees improvement in the unemployment.
Conditions so that rate -- the fall and fall for several months before he even hits of it.
Hasn't you know raise rates in a political year how is -- raise rates before November we have a mid term elections coming up next year.
Nobody's -- want that to happen.
If they were tightening monetary policy I would agree with you but -- be doing is trying to normalize interest rates.
Zero to point 25 interest rates.
Going to point five is really not tightening and I -- -- I agree with you on that but I do think that he's gonna get pushed back it'll get pushed back but he gets beyond Jim Bunning who you referring to earlier.
I've never met -- there had never benefit German I've never seen him like the Federal Reserve Chairman effective and -- -- absolute worst.
Know when we see inflation though won't we see quickly and doesn't that mean interest rates are gonna have to start moving up very quickly and not a quarter point in the quarter point -- where.
You know two years down the road before we get up to as you said that 55 and a half 6% where where he's gonna have -- whoever the -- is -- to go up.
One point 01 quarter point.
Well there's -- that it's a much bigger debate and -- one of the things that that the Federal Reserve.
His laid on is broadening its definition of inflation to include assets yeah.
That we've already had some after that inflation.
That's what that's what happened before with housing inflation and they they didn't do anything about it so we're starting to see long term interest rates rise.
And if if there's a whiff of inflation the bond market will take care -- -- take -- they will demonstrate to the Fed that they need to take care of inflation by raising rates if not long term rates would just continue to go up and up.
And the irony of this whole thing and is that the treasuries in the process of of life -- insecurities.
At a time.
When inflation pressures could be building open and so the incremental cost going from short term debt long term that could be quite expensive for.
I'm good to see how they respected and now Salina of course you invest mustard on the best -- -- -- it what's going -- with the economy Ben Bernanke.
Speaking right now is well I love talking about all the suspects heck it's not about all that is well it's very academic on something we're gonna give you a chance clinical and -- Cavuto when we come back so don't go anywhere he's gonna be seeing right now.
But the jobs summit yet weighed in the -- -- -- -- -- -- -- forum for -- out there needs to be fair the system.
-- welcome back -- This is dot com live Cotter and burns we've got done well I don't know let's just go to Neil Cavuto right now he's in these he's gonna explain is exactly what I've got -- -- because the White House doesn't wanna call it -- -- It's not a fair Neil because the job fair everybody brings -- -- is and they actually get jobs surely some of them do at the end of the day.
So what exactly is this thing going on in either -- there's no snacks.
Well it's a party that's I -- -- they got a 130 of the best and brightest supposedly in America corporate heavyweights union heavyweights academic heavyweights.
All these sides gathered together to come with some idea to bring that -- -- to present.
Unemployment rate down a lot easier said than done guys as you know on the timing of this is a little bit body -- because there's been.
A great deal of criticism of this president that somebody efforts -- stimulus and other areas -- -- pick me -- Haven't picked up the job situation in any way shape -- -- they weren't.
So if he clearly attuned to that public sentiment is going to try to prove today that he's on top of -- that he's vigilant that he's looking at it.
That he's meeting with the best and brightest to get their points of view.
But again it's what you have to do when you leave here you have to commit to whatever you decide here and presumably.
When a lot of these corporate sites are going to be telling the president is.
Cool another regulation.
-- -- on the taxes.
And let us do our own thing not to -- -- up to a woman but it is fairly broad base there a number of economists led by Paul Krugman of the New York Times and others.
Who are gonna say it has -- an immediate need for more stimulus more spending.
That the nearly you -- 900 billion dollar package that we've already had wasn't enough.
So obviously a chasm between some of these camps.
Not -- we do we actually believe though that the White House is gonna listen I mean we've been talking about this for so long now.
The need to lower corporate tax they need to lower the payroll tax.
You need to allow us to -- compete better globally.
Is it is it -- -- do we actually think the White House generous.
-- they won't listen to you -- chorus bomber.
But but I think that they might they might listen to some of these fat -- here including.
Google's Eric Schmidt.
They might listen to these guys if it said it in a nice way.
But you raise a very good points racing because those who have been especially critical of this administration.
And some of its fiscal initiatives.
They're not here.
The -- congress is not is not international sources and in fact is that an idea and visiting groups that have been very critical.
Of this administration's.
And very very critical.
Health Care Reform plan that sifting through the capital so they got very critical and all of a sudden they didn't get an invite.
Now -- you wonder if there's a quid pro quo there but let's just say it is not exactly a fair and balanced summit here crap -- on site.
The -- real quick are we expecting any deliverables.
Anything out of this other then.
A photo op and I you know and I think your -- -- look at the end of the day and we'll get to work on it afterward we expect -- concrete.
Well I told let's talk about homework -- we're we're we're quite literally you come up with some key bullet points -- you're going to commit yourself to do.
-- but besides that.
Now but you know Chris and -- a weird way there is some value to having all of these types together anyway for one thing.
There's a sort of a warm glow that extends after they leave the white -- they're not as quick to criticize the president afterwards or at least not as soon.
So there is a little bit of value in them believe it or not PR.
You know -- little -- isn't my day.
There is and I -- but the president is going to be doing this White House to main street tour that kicks off -- Allentown Pennsylvania tomorrow there is a chance to say you see I met with these guys are talking to them on talking the U.
This administration does not want to do order order or act like -- -- said.
-- in the prior president it fairly or not is this that that guy -- that it's not we're not out of touch where we're we're feeling the pain we're on top of that.
We've got all these ideas were working with the best and brightest to get their ideas.
So be -- we'll -- -- quickly and I gotta go any small business representation handling.
We all know that that's where the bulk of our jobs come from.
We you know it's it -- c.'s sense or just get my notes here Tracy not a lot I was going to do this guest lists and it.
There's very little of that now they've had small businesses -- -- that is gatherings at the White House before so I guess they can kind of say -- we.
Was I address that but I'm really not any you can argue today -- up -- -- -- not exactly small town it's a pretty big town -- -- they have it but yeah.
Outside of that -- a smattering of those types.
Yeah -- and that actually so that's comes back to our result.
Are they really listening and maybe this is just a big -- by now moment.
But -- -- weren't combed by a moment though that would be negating -- -- wouldn't know because yeah.
Get no because this event -- yeah -- got here now are you are gonna get top notch interviews with top notch.
-- -- I don't try to sneak into the White House -- the bad press some don't do it it hits in body I had intended the owner Neil Cavuto in DC getting that today on the jobs forum mangling -- Thanks there is not a job summit until you at some point time and people already getting tired -- -- time meetings.
He tired of people saying -- at -- White House at the end of it all -- we're working mercy were talking we're meeting.
Do talk do.
Yeah just made two amazing points that I think we all have -- -- the chamber of commerce comes out with a list of all the stuff they've been doing wrong they don't get an invite you.
It will be seem to see how on the CEOs and labor union leaders in Iraq in the there and -- there was anything.
At the end of this summit Chris Edwards right now director tax policy studies -- -- institute joins us right now from Boston and Chris.
All what is your take on the -- jobs -- -- that is going on right now at the White House and the deliverables or will be -- might come out of this thing when it's all -- don't.
I think -- -- focus for a couple reasons one is we shouldn't be having a jobs summit we should be having -- long term growth summit.
If the private sector economy was kicking into gear.
Into a long term growth cycle the job to take care of themselves.
We shouldn't be trying to micromanage.
The economy with 3000 dollar tax credits.
For -- we should be focusing on long term growth.
Secondly I mean that the short term focus of this administration I think is remarkable.
They are doing things in the short run that sort.
Gives a short term -- -- the economy but damages long run growth.
We should be asking are there policies that can help in the short run.
In the long run and I think they are as you've often talked about lower corporate tax rates I think would give a big boost in both the short and the long run.
Yeah and that's have just an act that.
If we're gonna talk long term and how we can better compete globally corporate tax should be on the top of the list.
What about the payroll tax -- we you know will there be discussion about potentially decreasing the payroll tax one help our small businesses.
I think that the -- way to do it.
You know I think the corporate tax is more important I I think globalization.
Has put the corporate tax under more pressure than any other.
-- new KPMG survey came -- a few weeks ago.
Of over a hundred countries not just the OECD.
And -- of the top hundred countries in the world the United States is tied with the third highest rate with Japan and -- That's crazy.
So you know I think ultimately -- workers -- and help with jobs if we allow our businesses to be more profitable.
And Chris are only one of the few if not the only country in the world -- -- on worldwide income.
So that's a double whammy we have this high corporate tax rate plus -- worldwide income is taxed as well so you that -- does not let -- There aren't.
A lot of countries in Europe like the Netherlands and France.
They don't really care what the foreign subsidiaries of their countries do and that ultimately benefits.
Other get the business back home so just consider say DuPont.
They right now they invest in their Brazilian factory that helped DuPont workers back in the United States because it generates exports from DuPont US -- to the new Brazilian.
Unfortunately united states tax law punishes that say DuPont Brazilian facility.
Which which backfires I think in terms of domestic jobs and production.
Chris the White House has been cleared to state that the goal of this forum is not to create jobs directly even more to discuss it.
Doesn't this administration.
Given where we are on the political calendar with the elections coming up don't they have to give us something.
I think we've we've talked about things -- anything you just name it we talked about ad nauseam.
-- don't the people -- right see that unemployment rate dropping its gonna be again 10% plus tomorrow when we get the monthly report.
The waiting to see action from the white house on something.
Yeah I you don't I think it's weird about the jobs summit and and with Christina Romer op -- yesterday.
I guess the Washington Post with that at White House economists don't seem to know what they wanted to do and that is different from the Bush Administration.
The Bush Administration had some very top notch.
Experts like Glenn Hubbard and Greg thank you they knew exactly what they want to do they wanted to cut dividend taxes they want to cut capital gains taxes they're academic expertise.
Bomb pointed the way to you know good good good economic reforms.
But Christina Romer are another administration economists right now they seem to be confused and they don't really seem to know what they want to do which is amazing it's.
It actually is but unfortunately foreboding.
Of what's gonna come out of this meeting today -- let me ask you this Chris before we wrap.
What do you want to hear at -- meeting today.
While I mean I'd love the Obama administration to make an about face on the corporate income tax but.
You know -- against all these sort of narrow tax credits.
That that they want to add to the tax code.
I I think it you know it takes away.
From you know that the need for serious longer term reforms.
You know I'm not expecting anything other than you know PR to come out of this meeting.
You know again I think the focus that's -- long term growth appeared not to short term stimulus I mean he -- wanting -- people keep forgetting.
-- everyone talks about how only 200 billion dollars of the stimulus package.
Has been spent so far and that may be one reason why unemployment rate -- has gone up so much.
But the fact is that it from the keynesian theory total stimulus this year and last year is one point five trillion dollars that the amount of the budget deficit.
That's the largest spending stimulus -- world history and here's where we are so I think administration economists have to really rethink the basic keynesian spending theory that they've been following it doesn't seem to have work.
Now and the problem is that just means that our tax rates will unfortunately keep going up Chris Edwards director of tax policies at Cato Institute thanks for joining us.
Thank you thank goodness we're gonna go to break but we have Chris back when they just talk about how we're -- overhaul the tax code and I know you probably think that day off but I X company.
I will be here you accounts look that tax -- -- directly.
Welcome back markets down about five points right now we've just been hovering around -- all day long as we're getting some good news and bad news its request will be -- This seems to be that way.
-- with the economic data that we're getting -- -- the big jobs report tomorrow though that'll of course move it a great deal on you know what's not happening today I don't know if you're Goldman Sachs is taking there.
Whole executive compensation thing right to the shareholders which is interesting because.
A lot of people out there and get proxies in the mail they get the information from the stock that they own and they just throw it right away a lot of you'll feel like you know.
I'm not call icon I'm not some big whale I don't know hundred share 500 that is now I don't think so that idolize my voice can't be heard rob Kerney freelance reporter joins us right now and rob.
Did a little researchers wrote a piece on five ways that these small investor can use the Internet actually make sure their voices heard -- don't rob.
I Chris I did good I found me on yes right so.
Just does -- say that this mom that's has a lot of options online.
They could start -- -- want the companies themselves put out some of them like to now I've IR blogs -- the -- one is called Dell's shares.
There -- -- if you have a complaint about that compensation and -- like that you can put it right to the officers who were on the blog.
There's another cycle moxie vote dot com quite interesting they really simplify that proxy voting process.
Like you said you get all this information in the mail it's confusing all these different codes.
They try to make it just one click process.
That's taking -- value you already have a group of shareholders from company called on two technologies.
Who are merging them with Google and there on that side they're trying to rally support.
For a better offer than that what -- -- Yeah slightly to the site.
Here's my question with that.
You millions of shareholders for some of these be a large cap companies.
How to -- think that my blog is going to be red -- I think that -- -- -- email.
How on earth could I be confident that our money get a response from somebody that cares about what I'm saying.
Well there are precedents.
There's a Geico Eric Jackson back in 2007.
This guy out fewer than 100 Yahoo!'s shares.
But if you saw that there were problems -- Yahoo! competing with Google.
And he put up on his blog which at the time what didn't have very much traffic at all.
He put together nine points where Yahoo! could improve.
Well next thing you know -- buying up things on YouTube he's getting up to 9000 hits on on its -- to testimonials.
He becomes the public face -- really of this broader ground -- Yahoo! shareholders looking for improvement.
And next thing you know he's speaking out -- annual meeting.
He's getting some response from the company there while the protest vote.
Obviously there was more to that.
That Eric Jackson but a week up to that annual meeting 2007.
As the chief executive of Yahoo! Terry -- will step down so.
They're definitely -- presents -- people who have made their voice heard using the Internet I.
I think that robbed the bigger point with all this is if nothing else people -- the opportunity get more involved.
I'm still skeptical that their voice will be heard but I do think people should make an attempt in shouldn't quit.
And give up and say you know what my voice is too little Palestinian near me at a minimum let's start watching shareholder meetings let's watch with these guys have to say we -- watched.
Bob let's yesterday we could from GM talk we could've seen a lot of things.
Thankfully the web is there for us so if nothing else it's helping educate us a little.
That's right I'm in Intel pioneer -- for major corporations day.
Actually allowed online shareholders to participate and -- annual meeting.
So you can definitely.
Watch -- meetings -- and sometimes even participate.
Attic gathers their side -- share owners got -- Which allow you to petition their congressman.
By filling out a quick ten play.
You -- certainly.
Tried to get your message across.
-- you know 87%.
Of small shareholders retail shareholders don't even vote their proxy so.
At least -- the proxy is becoming easier to do that.
Who now -- map.
I -- we appreciate it rob -- small investor bigger -- -- -- lazy and it is getting it of the individual shareholders more influence in the border and thank you sir.
Rob Curran is a freelance reporter at a Dallas -- is hey we are only down five points right now Tracy that means that the karma.
-- I don't know what happened when I wasn't here -- I don't -- hair on saying is that we started down nine and now we're down five so four points better on the Dow is better than a sharp stick in the -- even -- 400 down with still.
Ebitda shots taken the I'd had that terrible phrase my -- home I -- you're saying -- -- -- my dad phrases but something's moving this market.
And anti -- -- -- And I'm still pondering whether or not this small shareholder has -- -- -- outlook about I'm not confident I want you want -- loser and I have to and the reason it stuck out to me Sigma Designs because the semiconductor designer and even relying on -- to carry Ashton they missed fiscal third quarter loss.
On costs related to -- latest acquisition lower sales missed estimates stuck with -- about 12% before.
Bank of America of course we start talking about this last night they agreed to repay 45 billion dollars first to seven -- I.
We've seen a timetable that you see a timetable at this and I didn't really do I think batteries when he billion dollars an immediate solution.
Immediately immediately think like write -- check I immediately and over immediately can take on Manny what we don't have of the warrants -- I know there's all that there's still it's it's out there but nevertheless they said they were gonna do it.
Comcast of course in the news agreed to statements majority ownership -- NBC universal from GE is very good for Comcast they want more contact.
-- to all and added the wings of the peacock network to let them and in peacock and in fifth LP peacocks have wings like that that they fly thirty billion dollar B all.
Right now number two I -- to Pier 1 Imports but this is really because we got -- -- seems -- that.
-- vast majority reporting today November same store sales to be able missed Costco BJ's Macy's target Abercrombie Fitch next.
And -- it exceeded.
Pier one now held by -- Asked to be because of expectation.
Is he's the only reason expectations are so good -- -- zero hair and liquor.
That's the thing in the I thought here one is one of those Q what has been just desperately hanging on here for years -- On and yet I -- obviously expected but you know -- -- he's maybe not as bad as we saw so.
-- be Coles came in with positive seems herself and Limited Brands once again -- -- -- brands.
The parent of Victoria's Secret.
Polls -- tonight.
Am coals Limited Brands -- you have a little bit of a disappointment from Aeropostale though right yes absolutely -- that's unusual that an event sound calls.
Nannies and wicker.
I'd I guess bullets Cole's what's called -- that.
Very actually get everything else there -- know what -- -- to get your pennies in your -- And you're -- -- I was I -- this is a plastic company.
They're being bought -- eaten 191.
Million dollar cash stock deal.
-- cited as NA activity stuck with a late forty eat all you have to have.
One of those I want him.
Fairly -- when you were gone one day I forget what what my stock was -- seat I think it was a Chinese -- touting his favorite -- -- they're doing -- picked it because it was a 40% of it is the -- immigrants actually got to the -- of at least 40% CU on -- -- -- -- one is still around it's still around I questioning -- -- -- -- -- just hit it -- -- -- -- -- so maybe that's what it is.
Don't -- have to stores and you've got a same store sales got to be on fire so far behind on the show it's crazy guy mark Travis he -- -- You need a loan of I don't intrepid capital funds -- of intrepid capital fund.
Significant retail numbers out right now and a lot of them -- this appointees is a case where our expectations rose it would over the last couple months even.
I think you're absolutely right in here want I think they've kind of been on death's door so we've looked at that at one point not type of business -- -- this point.
You know I think we do have a retailer that we -- actually -- -- the same store comps and you talk about shoes and underwear where -- come out earlier.
For us it's dogs and and drain pipes I saw that unless you know I think PetSmart is an example of retailers actually had positive same store comps.
Cuts come up what I would consider a -- strategy -- they've slowed down their same store sales growth and generate more cash and got about back in place.
You know Americans unlike people in Indonesia Central America will take better care their dogs and cats and they will themselves -- You -- -- -- they -- dolls and Indonesia and China.
But down so anyway they've offered.
Other services -- -- services and on they've slowed their same store sales growth.
I mean -- -- the new stores to save less than -- hundred this year how much of what they do as a -- -- -- because there's so anchors and strip malls and things like data -- you know maybe the secondary stores that well we haven't looked at that way you know if you look at their balance -- it's really just operating -- so we -- Syria really debt free there's like 240 million dollars in cash and shares last eloquent that 26 all right so.
You may have a little room to work here before we thank them.
Private market value which is really what's is determined for crosses when we were by -- -- can we get a dollar for sixty cents.
Right now on the way to prices are Lleyton 2009.
I think that we're seeing a lot of 85 and I -- dollars so.
You know they're they're not giving things away like they were this time last year and from my perspective.
But is that the -- -- you also have central garden -- on your list you know.
We're not spending money on ourselves on our kids and I I know people that are some nice to that we'll tell and I would personally take my kids.
And -- but I have to say I don't -- is done I don't.
And and really people kill themselves for their dogs sure so is -- They kill themselves regardless if they think they're guarding him if anything -- -- that -- enjoy the fact that it point.
Well I think.
The way that we've come to some of these names central garden and a great example is we also do -- you'll fixed income analysis has certainly come component of intrepid capital fund.
We started looking at that particular credit.
And you know this time last year how you'll press -- 2000 basis points over the ten year treasury today there 600.
We were able to acquire that central garden -- which is a 2012.
Credibly with -- -- not percent coupon in the high fifties.
Today the -- -- you know wanna want.
Which to me it's interesting that you have a triple C credit.
Traded at 101.
And he is the S&P analysts have -- all of them are the markets have wrong I -- analyst at all.
I'm because they've they've brought down -- turns and leverage adaptive -- off pretty significantly with their free cash flow we've -- only couple minutes left to go but you've got Constellation Brands prestige brands in Canada as well as.
In top flight takes it's possible -- one to -- those well Osama prestige that goes back to not mind my -- thing.
One of their biggest products is common and that spic and span.
There come a virtual home brand company on everything from clear score -- for those -- it -- -- of H1N1.
-- -- for you know -- are doing their nails and home.
And down you know again we look at the credit and we like to equity inequities probably an 8000 dollar bid worth ten today it's -- you know -- last on chemed.
Which is -- native title -- what you will recognize the other drain name Roto-Rooter.
Which he posted on a day after Thanksgiving going to being Black Friday is also the biggest thing for -- played on the -- so.
As wondrous talent it's amazing how the public and an expert you become in a different fields you definitely hear of life I think because it's personal care right we're not gonna give up on that we're not gonna get -- and our pets and Constellation Brands when I got some drink it -- -- -- I guess I got news story when I have a plumbing problem how my wife and so can we wait to get paid.
Right right right hip hooray.
You know she she's gonna fix the drain -- the same for whatever so now are these long term plays are they short term although it.
That's -- same thing we've always invest in things that people need news.
Consistent cash generators typically less levered balance sheets.
-- and then in -- -- comes out of our portfolio of there the other levered to the four times stepped in but I'll become an interest charges pretty handling they're not.
Long duration high high yield names that most people associate how you Newton -- And inequities are we you know as I like to say -- businesses that make things that people need -- news you know highlighted underwear a minute ago Victoria's Secret obviously with their.
The show this will be -- You know great business -- we've been passed owner of limited.
Where we can this guy cash flow get a higher valuation -- of a break up that's where we wanna -- you know.
Mark great stuff thanks -- by Alabama -- -- my Travis giving us his.
It's all good sense his picks -- oh he's gonna need to.
Club club do plumbing manager of the intrepid capital fund CEO of infinity capital -- -- -- -- -- -- -- that -- -- influence of lending activity.
On it is it is facing is -- -- -- statement break when we come back a lot of more interesting stuff to get to including TVs we got a lot of here in the studio.
And thought that somebody can tell you what you need to get for your home.
But I -- foxbusiness.com live where we pick -- words.
Why not why not do it don't forget you can download the -- -- for your iphones you can watch us in.
In since day one of the greatest cities in America really is expensive -- -- -- surprisingly it was very -- -- -- And I was trying to teach Robert grant the last companies also don't forget I want Cablevision channel 106.
You can watch -- all the time now in the new York New Jersey area that's very exciting plot out my family actually believes I have a job up until now was -- but at the we go to Kansas.
Tom came -- CEO co-founder of fiduciary benchmarks and former CEO of JPMorgan's retirement plan services.
I gotta tell you I thought I would think can't -- last night it was so windy I was like -- in the house while my house is gonna blow away it was crazy weather here last night.
-- got a -- retirement and here's my big question.
Are we -- people to death with all these numbers because no matter where you turn nobody is prepared for retirement these days.
Well Tracy I don't think that nobody's prepared.
But I do think there are a lot of individuals that don't know if they're prepared.
And the reason we built retirement readiness index -- -- benchmarks was to be a catalyst to help people understand that question how much money am I gonna need to retire.
It's it's a very very key question in fact it's the key metric in our industry.
But -- do you know yet.
By the way that you know is to basically.
Ask your plan administrator they had the tools available for you to be -- to -- a couple simple things.
One -- have -- how much you're gonna new retirement.
There's a great study for man consulting in Georgia State University gets updated about every two years it's actually an outgrowth of the original Reagan commission on pension policy back in the eighties.
But they basically say that -- 20000 dollar employee -- about 94% of their income to retire.
A 60000 dollar employees about 78% they come.
So once you know what you need and some simple math math to figure out what you gonna happen and of course you've got -- include -- securing those numbers as well so it's not a daunting a task -- -- think.
And we built for -- -- this -- to make that -- a little bit easier.
You built this index by surveying for lack of -- -- -- 21000.
Companies I imagine.
21000 companies gives you a pretty good a pretty broad.
Base to work golf clubs -- it study most.
Did large companies in the in the in the country if not all -- -- creek well -- 21000 companies represent about 33 million participants and about two point one trillion in assets if it's a huge segment marketplace.
And you know I don't want to make sure that we're very clear this is the first step in the retirement readiness index we use publicly available information to build these ratings.
So we went to the airline industry occupation -- from the Bureau of Labor Statistics where the forestry industry -- the telecommunications.
We pulled average age an average wage and then we did the calculations for the average participant in each of those plans and again that's the average participant.
Nobody's average so that the question that we're trying to -- people understand is.
And my average and how am I doing compared to that.
-- -- so here's my question them.
If I did it at forty.
Is the number gonna be different if I do it again at sixty and I lifestyle.
God willing will improve and change over the next twenty years so the number's going to be very different so I start planning today.
I still could come sure.
If you know I I start to take on I am Mercedes in.
Golf course in I don't know what what you do when -- sixty but that's into doing a -- you have more expenses.
How do you just this thing or do you have to adjusted as you go along.
Tracy that is a great question in fact what the -- consulting is as determine is that.
People who make more money actually do spend more of it.
Well which of course is good for the economy -- so as you spend more money you're gonna need to replace the -- retirement.
So indeed you need to adjust your index constantly look at what you're going to need to what you going to have and it's a constant conversation it's not a set it and forget it type of environment.
-- and it's absolutely correct.
Given now your analysis -- -- you've done so much up you know it would between 1000 companies are you finding that.
People in similar industries are similarly prepared for retirement or you finding that it's all across the board.
Chris is very surprising.
Some of the surprising things that we thought there's great variation.
Outside of industries so you have some industries that look that that -- -- 73%.
In some that are well in -- -- -- hundred.
And then even when you look inside of an industry.
There'll be companies that have a retirement readiness -- that's very high.
And some that are very low so it there's great variation -- side of the industry and there's very great variation by company.
But let's talk about what happened recently in the market tanked so planning you can take your planning and throughout the wind out your mother's coming to live with -- no matter what she tries to do right now.
So great and what happens then win when things like that.
Have to play into the factors do they not.
Paul Tracy they actually do play into the factors.
And there's actually eight different major variables that impact retirement outcome but the two that are the most important.
Is the age you retired in that age you start to prepare for a -- and got touched briefly -- the age to retire.
For all of us are normal retirement age of Social Security -- 67.
And for every month that you retire before the age of 67.
Your retirement benefit is reduced by one half of 1% from Social Security.
So if you retire at 62.
Which is a full sixteen months ahead of 67.
You're Social Security benefit -- reduced by 30%.
In addition you won't have as many years to make contributions.
So Tracy while the markets are important.
No doubt about that.
What's more important the two most important variables as your actual retirement age and he -- start preparing the market -- smooth it out sell itself out over time.
But you really have to understand what your goal is you got to start working for that towards that goal right away.
And that's assuming that Social Security doesn't become completely.
-- -- -- By the time I retire and that I've got nothing there and about how much I've put in Tom thanks to appreciate it.
Thanks so much time on an -- of course CEO and co-founder fiduciary -- -- diplomacy of JPMorgan retirement plan services getting -- today.
On the that -- retirement index.
And of course some of the website is that -- -- be that fiduciary benchmarks dot com.
If you wanna check it out stat it's interesting and it you know that also -- to -- is an interesting variable that -- including Social Security.
In the calculation -- 25 years when I can start collecting all right -- now.
TV that I can see either at the end of Fox News on.
Is a good TV.
I like doing a thing on -- David I'm not sure if you're exactly right on that side Paulson from best buy is why do this our viewer wants a free TV that's why that's also very good TV.
I'm not real good -- on.
Guessing the folks at best -- I'm giving away too many free TV's site this -- TVs are still hot item flat screens plasmas.
But I think what.
Out of the market I'm still confused -- simplify this process so people when they want in a best buy.
They don't see -- fifty TVs on the wall and just get completely overwhelmed.
Play action we are right there are a lot of options to choose from quite a lot and the options I hate to tie it but they're only gonna get more and more expansive as the years go on as the technology gets better and better.
But I can break it down pretty simply this three.
Go to technologies.
That are going to be around for a long time.
One is -- LCD TV LCD is kind of the basic.
Entry level sort of all around TV that starts that usually starting -- -- 150 dollars and -- have high end models going past.
You know 4005000.
Dollars for high end stuff.
LCD TVs yet plasma TVs which are going to be sort of high end.
Home theater sort of real buff -- TV's you know and what's new this year that's never been out before and best buy circuit carrier LE DTVs when you're awesome ultra thin.
On only about a inch and a half thick.
High -- TVs that are that are really did an awesome picture.
You know that I have TVs in my house that are his.
Deep and wide as thick and deep as they are your fifth two of the guys still there it's new because that's why I'm in the market easing Canada met in my house because I have -- -- this -- I watched TV incessantly and yet I still -- TV because I've not been able to get my hands around.
Whether I should get you know an LCD -- LEV plasma they look into the always worries me is -- -- iPhone effect.
Since you don't buy an iPhone.
Apple comes -- another one that's technologically superior is there a concern or should you be worried -- I wanna spend all this money on a beautiful 46 inch.
Plasma TV and then next month is going to be technological breakthrough becomes obsolete.
Well I mean I think the big concern if your TV consumer is not so much the the technology going obsolete.
But it's asking yourself the question am I getting good value in the purchase that I'm making.
So it might be that you're looking to get the biggest TV for the lowest price point -- number like this that you might be a home Peter -- like yourself the watches a lot of television.
And you want something with all bells and whistles and the quality.
So let's talk about that now let's just say I want -- Being big -- is it better to go with a -- -- an LED vs an LCD if all you're -- for its size.
It -- -- the -- -- and I look emphasize that there Tracy -- in -- new media -- minutes -- not connected -- -- -- is is its size is the biggest thing then.
I mean plasma is.
Is always going to be one of the best options if you -- looking for best quality in terms of an -- that's our biggest size.
Plasma started forty inches whereas LCDs for example start around five inches in -- once he can't get a -- that small.
The only thing you can get a plasma and isn't isn't a big team Dayton.
They're gonna give you the best it's gonna give you the best picture quality overall it's gonna give need -- true deepest black collar.
Which if you're a real theater -- or -- or -- like science fiction movie watcher -- game player.
You're gonna appreciate that you're getting at the true black color supposed to win that synthesized by like darker color so -- going to be when your best -- for big TV -- best.
But if you're in a room that gets a lot of natural -- for example.
Or if you have to view it if you've got a big room and you have a lot of people who watch a dvd got -- you have from different angles that plays a big role in -- boards of both those two factors play a big -- don't think.
For sure I mean plasma then the screen itself is made of glass so any time if suddenly have complete plastered everywhere and so I -- advise anyone to buy a plasma TV unless they are watching -- dark room.
So if you're a bright room like -- the kitchen or upstairs to Larry and stuff like that.
You don't wanna get a -- you wanna get an LCD because that has Amanda finish on the screens you're not gonna get the glare and then and plasma is going to be good for all viewing angles LCD does kind of if you have a living room the kind of curves around.
LCD will -- will be little bit dimmer when you go off of the size.
OK so now it sounds like for general purpose.
This uses usage -- exit LCDs -- LCD is sort of the most all around personal TV per dollar of that you have some favorites.
Yeah we have LCDs that start at like -- -- only about a 150 dollars we still have yet at best buy an exclusive TV just -- or die next are private label brand.
That's 299 dollars it's the Black Friday price since it's still good you can still walk into a storm by tonight.
Minus -- pretty much as I heard.
Pretty good things about that file -- into a best buy.
I'm looking at these TVs they all look the same to me honestly unless you really have a trained how can you figure out whether this one looks better than that one of -- looks better.
And he knew what the technical specs have people -- -- -- 1080.
I've heard what the megahertz lately that's another big buzz word that's come around -- at 240 whatever the case to be anyone that expects the top three or four that he will need to look at and say okay this is high end vs maybe a little bit less.
There are couple big ones that you got to look at one -- -- the resolution though there's there's two sort of standards right now -- 720.
And 1080 1080.
Resolution you're gonna get that when you watch Blu-ray movies when you play Xbox three play PlayStation -- When you're watching standard definition keyboard or even high definition cable that only broadcast -- -- -- -- -- so again you wanna if if that's -- you're doing 720.
Blu-ray video games than the hurts.
-- refers to the that sort of smoothness of the picture.
Blowing TVs are going to be sixty -- what will happen on allowing TV especially LCD is when you're watching sports or action movies.
You'll see some war.
If you get TVs that are there 120 Hertz or now I have 240 -- you'll see -- night and day difference when you're watching high definition sort of fast pace that things like sports and.
Action -- do you behind megahertz if you are into all that yet per share.
So in theory you can get as seven to any resolution with a high megahertz.
Is that that it's -- it's suffered a fine because typically date it if they're gonna get behind resolution they're -- gonna give you high and you know that hurts the we have Eritrea so they've been there they don't try to you know stand in it that they go all -- nothing.
-- real quick is there a sweet spot in terms of a television size that sort of is the most popular makes the most sense right now that everybody is going for as opposed needed to big or or too small means there's sort of was one little area.
Well I can tell you that but from what we see there are a lot of customers -- coming to best buy that there are not necessarily making their first flat screen per -- they're actually purchasing maybe their second third fourth or beyond.
So really -- I hate to say that there's no one suites by I can't generalize like that I would say that.
Based on the TV that you need you like a city -- -- -- -- -- -- -- you -- -- one for your kitchen a minute you want for the bathroom or to.
That first sort of home -- purchase -- we're in an area but the -- -- -- -- -- that's best for you based on the size of the room and based on what you look at -- they're.
Fourth -- TV -- what recession.
NetApp well he that is continuing to this is thank you -- that's that's load on CDs from best buy only come back we'll talk to somebody knows little about something that.
How much energy it takes -- -- run these TV some a whole lot some of them not so much.
We're getting into us heard and renewable energy.
And my brain and energy in general one of those power companies in America CEO joins us.
Hi -- -- foxbusiness.com.
On the East Coast nine to five in the West -- good morning to all you out there we had a market that's up about WellPoint is a big difference from when we start -- whole -- of -- can't really out we got this market back up its positive.
We're talking TVs were talking energy so we have to move on to -- -- CEO of Florida power and light now.
-- -- part -- -- largest renewable energy provider in the US that accurate sent.
That's right you spent eleven billion dollars on renewable energy.
-- -- Primarily wind and solar we are the biggest wind energy producer in the United States we have over 7500.
Megawatts of wind energy.
And we're investing about two billion dollars a year and win.
But we also have the largest solar plants in the world out in the Mojave Desert in the building three.
Big solar plants in the and that in Florida we just -- President Obama down few weeks ago the commission what's the largest photovoltaic plant in the nation.
I -- I've heard stories about how the Chinese are building solar farms the size of Rhode Island and things like that -- we're talking about.
Window farms from.
Oklahoma or north Texas all the way up to Montana -- this is this legitimate it in fifty years a hundred years.
Do you see something like that happening more with the renewable energy like solar and wind.
Really becomes a viable alternative.
I think without a doubt and it's pretty viable today is we produce more electricity.
With just with -- wind farms alone that are or largest nuclear plant and and that's just one company do as comparison but.
Just -- a couple points of interest.
The north and South Dakota.
There's not win crossing those two states alone to power half of the United States.
And ninety square mile.
Area in -- since Nevada or Arizona could power all of the United States needs for electricity.
It's been but at the expense though it -- probably is is it right now a little bit -- -- cost prohibited.
Look at it backed -- of the scale community when oil is six dollars a barrel or at ten dollars a barrel of the case to be in in in years.
At that point I'm wanna become what the American public say that's it now we need to do it because they I just can't afford it anymore.
Well wind energy is coming way down in in price.
Twenty years ago it cost us maybe twenty -- kilowatt hour to produce power with wind.
There's places in the United States that we're now producing it for under three cents a kilowatt hour just -- negative.
A good example solar is still more expensive but it's prices are coming down.
As more people investing in in solar and then.
You also have to look at the -- a cost of fossil fuels room -- you know cost of climate change.
In those costs today and clearly with renewables it's an infinite supply of power and there's no carbon emissions there's no other -- going into the atmosphere.
What did you think of although it's.
News that came out about climate change they falsified emails things like that is this are we -- is global warming happening do.
Does this need to happen sooner rather than later.
If the vast majority sciences scientists still believe global warming is happening anybody who's really studied this has known.
There's still debate over how fast this is happening how severe is going to be that's what this whole climate gate is -- it's not whether it's.
Real or not real if it's real it's happening and we need to do something about it.
You -- for half million customer accounts he did in 2008 some enemies obviously grown.
-- are these are people willing to pay a little bit more.
To have cleaner energy and I guess that's the question and needs to be -- all around the country right now -- willing to -- a little more in tough economic times.
For cleaner energy because that's really what it is right now meeting on long and at least right now.
Without a doubt that the challenge and and that's why -- whatever we do with climate we have to do it in a gradual basis if if you tell me you know price is going to go up.
Twenty or 30% -- might view there's going to be a giant backlash by peoples but.
Keep in mind there's a hidden cost what we're doing today in and that's going to be of a price that our children and our grandchildren -- so we have to keep that in perspective but.
As -- said the cost of these technologies coming down and oh by the way.
We can address climate change with nuclear power and you know the cheapest power we produce.
In our fleet -- I'd say most Mike pierce -- is the power from our nuclear power plants there's no emissions whatsoever from those nuclear power plant so yeah we can still do this without.
Having cost go to the sky and without wrecking our economy.
Is this so so what is there one way to go.
Or is it going to be a combination of all of them wind solar nuclear we -- and -- all three or will we just.
Do you think there's one path that we're gonna end up taking.
They're there clearly is no silver bullet to this we have to use every.
-- and our -- to mix my metaphors if you will but what we do need is we need a national energy policy.
But because utilities like mine are ready to invest.
Were ready to take action -- -- clear policy it makes it very very hard to do.
-- quickly on the state level as well are you talking about separate policy.
-- that's what I'm asking a guy do you need policy well the state level as well as the national.
We do but I think the national policy.
Really dominates and at the national level what we really need is we need a price on carbon we need to put a cap on carbon.
We need a renewable portfolio standard of thirty states that have -- today.
-- we need -- to be part of the mix and the third thing is we need transmission the biggest issue with renewables today is that we.
Don't have the transmission to take it from where we have lots of wind in the midwest -- -- the sun in the southwest and get it where people live.
And we need an interstate.
I voices from the fuel for electron.
Lou thank you so much for being with us blu -- CEO -- -- power and light.
The great day everybody markets -- and now.
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