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They look at the fact that this dot com live good to have you to finish off the week lab with customer but -- -- have anybody and -- have -- with the -- just able to do we don't -- -- today but he kept us through Atlantic -- to Friday.
And also you know speaking on how happy the -- -- put it but the idea that we lost far fewer jobs last month and lot of people thought.
Maybe this -- take away from that wouldn't talk about that in a lot of detail I understand that and that and I had to expect when we -- when -- companies they -- -- -- -- -- Did TV -- might decide if this doesn't look comfortable we could maybe that you actually -- -- the shopping on you wanna you know we're microphone problem talking just that's normally how it but it did.
And -- sorry you're right I'm OK I just like the -- to explain it since you know and what that I -- I -- making nervous for the entire.
Robert anyway it's -- -- -- could build this out to get bail -- they'll talk about that also later in the hour red -- we -- Fox Business.
Top stories gotta be jobs in the new jobs to deceive -- -- -- it did double triple take it that number to say that there was 300 somewhat thousand -- right most of 500 some -- thousand lost and that's a pretty big discrepancy that clearly we aren't the only ones right I mean you know the Labor Department you know telling us yes indeed it is the correct number.
You know we've followed double triple times to be sure and a lot of traders were sort of a little skeptical but that you have a nine point 4% unemployment rate you know that takes you back to the early eighties.
The highest since August of 83 -- a matter of fact for that household survey two different surveys -- case there's any confusion he can have be a monthly jobless claims number.
Jobs report rather a lower number of meanwhile aren't household report -- -- and that -- -- -- -- always seem to like fewer.
People are applying for its weekly jobless claims but is taking people longer to get jobs of the remaining unemployed for a longer time.
As far as the market goes though a -- win another thing to keep in mind is that wages.
The average workweek actually down to a record lows of people even they saw you know wages go up I think two pennies in the past month.
When you sort of factor in -- the less time were spent working overall.
-- in take home pay is going up less so.
While inflation remains under control you you also not getting spending arsonists some concern about the consumer spending aspect of this as well -- this is a couple things on the markets to watch and -- -- the stock market which looked like it was gonna take off on the right that came way back at the moment as we talk live.
We're up 45 points on the Dow the other part about it is Bob -- minor -- or -- well priced so yields are going to get they want to the -- the ten year which is the the benchmark and a lot of business loans your consumer loans and home equity lines of credits many mortgages.
Playoff -- this ten year notes that's why the yield is so important so when the prices fall the yield goes up to attract more buyers coming in so that -- confuse you when their prices are always on the bond yields spike up to almost 4% is right below three point 9% -- which is a dramatic rise and we saw last week.
-- we had a big move higher.
In that and that's why the a mortgage prices -- mortgage rates went so much higher according to Freddie Mac this week.
So something to keep in mind and with stocks you know just all of that was Steven Goldman he's the chief strategist of -- company -- talking about.
If stocks really before the best when you're anticipating recovery -- we've been anticipating pricing in a recovery were up 42% off the lows in March short period of time.
Going back to a World War II he says you know it if you think -- you're sort of getting to recovery phase now.
Europe gains started to trickle off a little bit -- historically it's been an 8% gain -- three months following.
Is sort of when the recession ends and then only 4% the following three months you're looking at 12% over the six months after is now.
Whether or not it's ended now we don't know obviously but the debate going on but tell you we've sort of gotten to the highs right we're right back where we were on Monday that big break -- highs -- so if you look at the S&P 500 Dallas briefly positive for the -- to people are getting to levels where.
With price standings getting less bad and I think people -- wait and see what's movement right.
To take up to the next level.
That's a good point a very good point actually because that this as much different than less bad -- thank you -- appreciate that our comments are coming -- to talk more about this about jobs.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Through the summer which is true apple all I know they have a little bit erratic and I was also -- a -- the Saturn sale to Penske the idea all these jobs are gonna be saved actually helps the satellite.
We heard that those jobs are going to be saved Lilly reported earlier this week that Hummer brand was being sold in 3000 different jobs at manufacturing plant now this isn't going to be sit in that matter not a -- average work week has shrunk a little bit.
And economist Chris well what have one of our guests here at fox business and often it has it has said that he thinks that's where you're seeing the plant closures reflected.
Is in the amount of hours the average American workers working so if that's what -- -- will be following that.
I want to -- got a mortgage Smith he's back.
-- advisory group he's joining us from San Diego good to have you Morgan at that these sad and whether or not the news that we're hearing today.
Has been priced into the market -- -- Well -- -- interest thing you know if you look at.
Historically at recessionary periods.
You know as you all know that the markets tend to be leading indicator and unemployment is -- lagging indicator.
And this is -- start to look like a historically.
Average kind of recession if you make some assumptions and in the average recessionary -- was about eighteen months if you look historically back about 1929.
And so that would put us on about -- June or so recovery out of the recession we -- market lows on march ninth.
And you know obviously the markets have come back oh well -- -- the 40% range since then.
And now you've got to slam -- lagging indicator of unemployment although you know it's it's at a 25%.
Hi that about nine point 4%.
It's still showing some improvement after -- market improvement so.
You know there's some indicators to me that this -- -- to look like a a classic recovery in the classics I don't think there's still a lot of gremlins out there right at any I'd.
I think when you look at fiscal discipline and the geographic dispersion of what's going on for example out here in California.
I really think that you know.
How the health of the states.
Locally here when we've had 18% unemployment around the inland areas of California for awhile.
A lot of issues right now with the solvency of the state of California and what's happening there.
And I think depending on how fiscally responsible states were.
In in the prior years is -- really have an impact locally so I think.
In different areas around the country are -- gonna feel things differently during the in this idea of -- a little one of the gremlins is -- governor -- -- just said -- government spending and you're again getting that as well.
It did that market ramifications of that are interesting right because it -- we insider Robert Gray about.
The treasury market today and the idea or not just today but this week in the idea of people the pricing in more of kind of an inflationary trade in the the market is coming back now and and what's gonna happen -- to rates have to go up in their already started to go the market based rates higher.
-- how closely do you watch that what do you make of it.
Well we think it's really important for investors and really when you look at what's key for us we look at kind of more long term money -- short term money.
Long term we really be we've done research on -- equities have been really good -- against inflation.
But for your short term money they don't just -- -- cash what do you do.
And it's important to make a distinction between CPI in what the dollars -- for example after three years in the late eighties.
You know we are talking about inflation but really CPI was about 3%.
And the dollar devalued.
Maybe about a 43%.
So everyone's talking now about commodities as a hedge against inflation.
But what if inflation.
Remains relatively calm at about 3% in the dollar devalues what do you do.
Well you know there's a good high correlation with commodities and from -- inflation you could look at.
Local dollar denominated.
Bonds and things like that so.
If you want to make sure you define what the issue is whether or not it's inflation.
Or or -- or the dollar you're worried about.
Well and her mentally also got to define what issue is -- to be allowed to happen right in some ways and mean in do you expect the Federal Reserve to allow an inflationary environment to occur we've been talking about that all week you were trying to figure out.
If the Fed is more concerned about that or is it about growth and how Bernanke can -- this whole thing which also all factor investment strategy I would think.
Right and I think what you have this competing.
Keep competing strategies that there -- -- competing motivate yours.
I think potentially there's an argument to be made that.
Within increased debt you'd wanna pay that off with the lower value dollars in the future which would mean inflation would be a good thing -- paying off the -- in the future.
And then you've got -- you've got to balance that with having fiscally responsible growth out there we're giving you -- arraignment and a little bit so the bottom line -- for our investors.
Will look don't make any server bets on where things are -- make sure -- hedged appropriately diversified appropriately and and and strategy is going to be really critical in the near future.
Has your strategy change -- the last six months.
Over the last six months now but I would tell you what -- we have investment committee internally every Monday.
And what's really on our minds now is what to do.
For our clients with short term money with regard to.
That the dollar and in others huddle saying out there that says.
You know they the rat markets can stay irrational longer.
Then you can say solvent and what -- we try to put our our our clients in a position where they don't have to sell.
There that are long term assets when things get bad like now and and that's where we focus on this these short term assets kind of cash reserve -- talking about.
And that's where we're looking at what do we do.
With regard to inflation.
And any kind of issues that are happening with the dollar so that those -- the critical areas such a good question.
And -- they're tough to -- doesn't tough issue street to figure out I would think that I mean just because a lot to change here and in the short term now.
Here yeah exactly and you're never gonna be able to sit here and say OK I've got it all figured out -- the best thing you can do is is say look.
Let's look at things historically and let's make sure we're not making too many bets either way and where we're hedging.
Our our portfolio is appropriately so the class a couple of examples of that and in you know a -- one -- -- -- the other that you put on recently because of something you've noticed in the last.
And a few weeks few months.
OK and -- -- But what we haven't made bets are hedges that we don't make a lot of tactical short term shifts but we're we're looking -- from a long term perspective -- How do we protect our clients kind of short to medium term money money.
And what we're looking at right now is whether or not commodities -- really have a good place in the portfolio as a separate allocation.
Problem is -- commodities they're very volatile love our clients have made the money there that they're going on out to to hit the home runs.
The other issue is.
Potential that we want to look at is an election if there is a devaluation of dollar how can we protect ourselves -- international equities are dead.
And local dollar denominated bonds are good which funds and international equities is there have led -- -- rather it's.
You know you could make a case for for Asian kind of the Asian market because it seems to me.
From the numbers that I've seen that -- where.
Some manufacturing is picking up right now is potentially leading indicator the recovery.
As Asia so that's -- that's another.
That the thing -- unity you know you have to worry about is.
On the dollar side.
If you feel that the United States -- are gonna have a leader recovery vs the EU.
Then that maybe the -- not gonna -- as much so there again you know it's all these variables you don't want him make quick changes that are gonna have unintended consequences for him.
-- to give unattended consequences we been talking all week about.
-- of the debt and the government spending that goes along with that and you know that being a necessary element of the recovery and then the crisis -- -- in vs.
Getting way too far ahead of ourselves in creating problems down the line I -- where you come along on that philosophical argument.
And I guess at the end of the day sometimes it doesn't matter where you are because you have to make investment decisions based on reality but what do you what do think what's happening in the country generally speaking.
Well in the country philosophically personally.
I think what we're shifting too as more of more socialism you know I've.
I don't know about you but I've never really seen it's an area where the government has has done.
Good job coming into a private.
An environment in and doing things more effectively than than entrepreneurs hand in you know that worries me.
I think what we're seeing in San Diego I'm not so sure these unemployment numbers really -- -- reflect.
The impact of small businesses.
And its interest thing I was at -- San Diego venture group meeting -- a couple weeks go on green energy lot of small businesses there.
Lot of grade on two murderers looking for money for helpful -- great ideas.
Gentlemen -- -- from Washington -- hitters there's a lot of money out here for you but nobody knew how to get it and they weren't getting it so.
There's some gremlins out there and it's it will see how things are gonna work -- -- you make a good point.
We we can't stick our head in the stands that we got to find some intelligence solutions.
From investments in point and we we've we think we've got some good ideas.
Irate at Morgan thank you so much for joining us from San Diego affiliate there out there than is here on the East Coast that I -- should have any -- it's June gloom out here yeah it's Latinos megabit -- think you can appreciate it -- -- and so it's raining here that we realize that Miami has accident on the board -- their personal finance gremlins are.
It's interesting to see we were -- to gremlins over on the market taxes credit cards parking tickets.
Yes I'll among the top one on the gremlins at my job there if you've read about this point green ones we do whether on our show between five and seven Kansas -- -- are almost.
Think it back I -- that a Fox News Channel fans would have noticed that because they were probably watching the launch are able they have on the at this point -- their show on the phone comes channel.
And poor Brian Kilmeade is that's it got all wet because he got tackled -- lingerie models like the horrible form of Israelis -- -- again.
They whipped that you thought to Frisco -- Morris is coming up a little bit later talk about the Palm Pre weekend of the funds from baseline let's.
Yeah -- that's happening.
You're supposed to -- While also ahead Jeff Flock on the GM bankruptcy and much more red ink.
This is not.
Jeff Flock is standing by fresh -- -- the latest news coming out of the auto sector and Jeff has been a busy week for you and -- finishing up with a very busy Friday.
Hard -- the lingerie models very but we can't at least offer the sale of Saturn.
I am baby does sale of Hummer would be a more.
Well today -- little -- 82.
Alias sale of Saturn and the way no sense is good news.
Good -- I know it's it's a web you know you can pretty much to me one.
Well we'll find out -- -- speed up.
-- -- -- -- -- -- -- -- -- -- -- -- -- The sale -- Saturn.
I -- digress Roger Penske is one guy who knows how to run an auto company you know his to Penske Automotive Group in Q1.
Made about sixteen million dollars even other sales were down 31% so.
You know Penske automotive is about 300 plus dealerships.
Around the world regulators and he's got about a 150 dealerships in in England.
As well as about the same number here in this country so Penske really -- -- giant I mean he really raced cars themselves are -- himself.
See his teams have won the Indy 515.
Times this -- knows what he's doing.
He buys Saturn the -- price is not disclosed -- that they will retain the dealership network that's about three -- fifty dealers and all of the jobs well not all of maybe with thirteen thousand jobs that people make saturns and sell.
So I got to believe this is a win win.
For GM for Saturn for everybody really animated -- -- models to -- Other cracks you know Saturn was -- at eight cars -- broke the mold I mean they were they didn't actually have developed this thing.
Outside of the regular GM -- his -- all sorts Samoa mom you know -- so if they brought in lingerie models I -- it would be only the latest wave yet the latest innovation.
You know I had a friend -- alleges that anecdote at one and I came on -- -- -- lingerie model in my I don't gotten that if you get her number or her name.
The reason why every app is because.
Her family only -- saturns for.
Her and her sisters as they reached that age to drive a car and the reason why the grandfather did this is that he said -- -- the car.
Made in the USA and that's why -- -- and -- it and it is interesting is because of that left he had to a -- -- that a -- you have aren't necessarily see it reject it it is.
Is it the network it's Saturday actually -- the Saturn is still gonna be made.
Origin is then the network the dealership network which it what's really valuable -- Penske.
Well Penske I think won them both having some of the other buyers just one of the dealership network but I think GM wanted to sell to somebody who was gonna actually continue to make saturns.
And GM will continue to make Saturn.
There's two other ones that they're gonna make an addition of the view -- forget the other 20 the aura.
And the outlook those three will be made on a contract basis GM will make the vehicles and Penske and the Saturn dealership network will sell them.
And you know talk about your your luxury model grandfather.
He was Smart because it turns out that.
80% of the you know -- sold about four million vehicles since it started 1990.
About 80% of those are still.
On the on the road they have tremendous.
Resale -- well that's what you resale value but they have had tremendous longevity.
So -- I really don't Nancy I like Florida is ignoring both of your lines -- lines and saying she -- -- -- very similar to you mean by Saturn for the same reason show.
They go I'm just saying we can you know hundred miles out of it all to get.
Seems like you get it to the time is no -- Jeff about Hummer to see how things are there.
Well there is a there's a slight snag the -- the apparently -- this is not something I've confirmed with anybody GM.
But there is a report that apparently in a couple of a Chinese publications.
That there's a problem with government approval of this obviously you know talked about the government -- in the US well.
In China it's even worse.
And they're concerned that perhaps the company that is buying this is a heavy equipment manufacturing firm in China.
He doesn't have the resources to do that so there's some concern about that a source at GM -- told me today that.
They are still pretty confident they can get it done and if they don't they have another buyer in the wings so maybe -- can live on May be.
Forever and ever hey Jeff thanks man I was always had a little bit more -- I'm gonna keep it to myself the best thing.
Yeah -- my bad days like this laughing behind the camera and a partisan.
Bob is visiting his dad he's in London -- -- his dad works -- for the CME and he went over for short this trying clear his head.
And -- after me you working with -- progress for so -- -- and in Detroit -- carpet.
Think they're planning -- have a good weekend by the iPad next week always -- one that was never that was great wasn't it was it's completely and totally your fault my.
Bring up Monterey modifying but all tackling Brian tell -- did that was live on television this morning -- and it.
Well I never relevant I felt.
It wasn't but it was it was it was a good segment on television this morning I think I don't know why I brought them.
-- it's raining out they did that in the rain they did the segment in the rain and we're having Clayton on an I was the FOX & Friends are and I -- it all comes together there was a reason for.
You should see it by the way going to be missed it on the Internet was great -- a while that was involved -- that mean like -- it.
Embarrassment this executive director of New York State commission on state asset -- -- -- -- to talk about none of these issues but it.
-- I -- Afghanistan and that.
Very nice save every -- -- that former exhibits.
That's part of the reason -- Is on is to talk a little bit and this place into our coverage we've had a -- this is a week of quote unquote red -- week we've been talking about what the government spending their money on that particular tuchman infrastructure and what have you.
And in New York State this public private partnership that's been put together and is right along those lines tell us about that proposal at least for this public private partnership.
Elect it governor Paterson announced this this Monday.
Something quite historic that you at a New York State -- Put together state asset -- invasion -- Basically end point of entry for the private sector.
So then your -- can advance innovative forms of infrastructure to save billions of dollars in terms of the way that we.
Silver project so.
What did this or is it -- -- this is it's kind of like.
One should the government actually acting like he's being elected in likening infrastructure error.
-- -- Even explain it but it seems confident complicate release mentioned public private partnerships but it's just -- their -- waited to funnel money and to get directly -- projects and to get some of from the private sector.
Help with those projects is that is that sort this -- -- that -- it.
That the public have.
Partnerships come in so many different forms and we've seen in Chicago and in Indiana.
They've taken the form.
You know asset monetization where the private sector comes in.
And leases an -- for a long long time and takes over he catamaran that's about -- private IK OB.
-- -- like the Indiana -- road is that like yeah we're not we're not talking about it on an approach that governor Paterson is recommending is really saying let's look at what the private sector as well let's go with the public sectors month.
Find a way to appropriately allocate the risks in the right and the public sectors taking far too much risk.
In terms of the construction delivery it's infrastructure that you had a stimulus -- can -- guys this stimulus money is just.
Scratches the -- in terms and -- distraction.
We had in New York State didn't excuse -- we had -- -- -- hundred billion dollars.
-- her -- -- and construction ups and down from the stimulus and we only had about three billion dollars without a bit like a quarter of the entire stimulus if you get it at all that money.
So what is the point -- did he -- an example of a project that this would.
Even if this is hypothetical on how this would work with states within an accident ridge there yet nothing like that that in our report we have we actually identify about 26 specific projects.
Totaling about thirty billion dollars that could be fast tracked many -- many of the pilot projects from transportation and energy to school construction.
There on that there's plated four construction right now but we believe that they can this -- could save a tremendous amount of money by how -- realize.
Come into the how much of the thirty billion would you do would you be of the safety -- came in in terms of of the thirty -- -- many of these projects are not human Damon have a chance of being undertaken without a public private partnership others -- And bridge recommendations that we put forward that state has back.
15100 efficient bridges and -- saying that scary it's scary.
-- can and we're saying that you can fast -- the delivery of these bridges by.
Putting together public private partnerships.
Let's say you're a figure that the State -- New York you know I'm I'm a private party -- -- -- jump in and help build a -- elected bid for this work.
How would we how would we go about building this bridge so it would.
-- we're saying is for instance there's that there's a bridge in them Brooklyn.
That caveat go break him and -- being this bad really values you know about a billion dollar bridge and it needs to be replaced -- and it's in desperate need of replacement in the -- -- he is looking to replace in about five years.
And we wanna move that.
And we think that by.
Turning over in the construction -- the delivery read that schedule that the private sector saying the private sector and give us a fixed price.
That we can pay you -- price over time over twenty years we'll make -- cent price.
Have an availability pain.
Is when it's -- and so.
You would enter into an concession agreement with the private sector.
What's the level of interest from.
Private sector firms are under you know bidders for -- -- and -- -- -- thing right now is that you know while.
Interest is -- -- other.
Area -- for investment in Fisher -- continues to attract huge amount of interest from.
-- -- private sector you you pension funds that are looking desperately right now are stable asset they must think they get pretty good returns on.
They do it's it generates inflation protected returns and -- stable.
It's a stable investment with a long duration which is exactly the pension funds mean now yeah that's insisting.
How that united did it's I'm -- it -- when the Indiana toll road that there's a lot of debate about how much of this.
How much how much of this we should privatize vs keep the public -- you're saying combined the -- seems to be the best model at if you looked at all of those things public.
Pride bit -- public private pet he manages it who are watt from doing the hybrid.
From getting a hybrid is that you transfer of the right wrist today.
Public sector heir to the private sector that should be they they take on the -- And -- schedule and and you know making sure that that.
This state isn't paying the costs of the changes in petroleum and steel and other price fluctuations.
And down you know right now it deals such as Indiana and its patents way.
Those types of up massive upfront.
Payments to states for basically.
The monetization of an -- that they're not saying -- -- on the market just because.
That type of structure.
Is looking what was short what's wrong with that one to support if it's transferring revenue rest and revenue risk is trickier to -- right now and they they.
Require a significant amount more debt is.
Those to the out ready to let out right probably half a percent -- so Indiana week in our report that -- before we believe that this state over the long run that this approach.
You know looking at long term savings.
And changing the way that we deliver infrastructure to be you know delivered faster cheaper and with greater performance -- -- to taxpayers that.
Anyone thinks its -- -- -- have been we've talked all week as this that we've been doing this coverage of the federal budget deficit and what -- in the spending goes along with that is that.
You wonder if more money or more percentage of the stimulus should have been allocated to infrastructure because the spending there is immediate in a lot of ways -- fish quote unquote shovel ready on the jobs are.
Then theoretically temporary which was the whole point of all this -- when you looked at what -- -- federal government is kicked and you think they did enough.
On a percentage basis of the stimulus vs the -- the money that they allocated to other areas and he could he said just scratches the surface of the needs.
I -- like -- -- we are very brief on New York for this announcement regarding put it all toward our stimulus funds in record time but all the federal stimulus but did you teach have we gotten in New York all the money we're going to get from the federal government on stimulus believe me -- met our timetable I believe for the first phase and not all out the door.
But does it all we've we've and we've put it your record time are what you could use more but it sounds like if you just growl at them sending -- needs are -- that's -- President Obama is proposing to create an infrastructure bank.
As secretary of transportation here we're about that a little while he's come out and expressed support for public private partnerships recognizing that the federal government can't fund our massive all of our massive infrastructure -- philosophy humbled because the deficits are running they're good through the roof that -- It's just ended like this and it I'll give you up a great example of why and and the way that we.
You know public -- partnerships can really -- plan.
His mentioning before that some of the costs on our projects are just going through the -- because of -- -- inflationary costs of construction says that statement that the near State Department transportation five year budget after construction.
He's about eighteen billion dollars and in the first two years.
Four billion dollars to see in -- just by inflationary -- and all of those costs could be shifted.
To the private sector through a public private partnership and private sectors.
Motivation for being part in this is and they get to keep portion of the -- -- that they deliver faster.
Under budget and they get to keep a portion of the -- whereas in the current approach.
-- -- It's got to be catch -- -- I mean in other words the private sector did say every reason this hasn't been done and analyze Smart enough they wanna get into -- have a partnership yet fit to -- innovation and efficiency and in the current.
A proud it's the traditional procurement -- for construction.
There is no incentive for -- efficiency because of the public sectors -- virtually all the ranks right.
You know the thing is and and I wonder if this is this is probably not an action to -- maybe not true in this case that.
The problem we hear on public private partnerships in the financial sector for example is -- a lot of the private entities.
Funds and hedge funds and then on to whatever the case may be other investment -- -- just don't in this environment one initially work with government.
They you know they that that's -- that's an authorization and what have added do you run into that at all in infrastructure.
Not at all interest in doing well from the commission process we need an aggressive effort to reach out to the private sector we -- and your quest for participation.
To the private sector and we got.
-- -- 120 proposals for ideas and sell.
An economic troubles that we -- -- then and -- muddling through right now the private sector.
Really sees the potential infrastructure and the stimulants.
And this you know that the the funding that.
President Obama put forward congress it's just exposed -- -- even greener so I think that's why you're seeing more and more pension funds coming forward and now our -- -- parents trying to pool together their capital.
To investors and mark on the leading -- kind of on the cutting edge of this are you talking to others said you know I'm sure -- you know it being in I think in New York is -- that they approached the Governor -- -- put forward in terms of creating transparent approach.
To that public private partnerships -- hope and an entry point.
For private sector animation.
Is is on the cutting -- I I don't think that there are very many other states have looked it.
Public pat partnership since -- its approach -- -- now from Canada and from the UK.
I read that in Montreal for example they did this and the highway project that saved 750 million dollars which sounds great but they must've spent something also so I'm just wondering -- How much political momentum is gonna be for something like this because as you're gonna say it from your position understandably -- -- all we saved X amount of millions of dollars.
But how much did you -- and in an environment where were already running deficits can you get this done political of these projects are in the projects are.
Going to go for infrastructure funding is going to spend the DOT has a capital budgets and -- this is and that is taking the money that we are planning to spend.
Museum more -- so you can get morning wildfire well -- did that you're gonna just take what's already been allocated.
Department transportation but you think you -- more projects done this and we -- -- up -- that right so what would sleeping create more jobs.
It's an economic benefits of it and it -- protect the public the public think people's republic workers' right if there even if they're -- I mean how does that work mended their underwear and LA -- working for the government act essentially but yeah government would be financed through -- through private and -- some extent yet.
Rob and the funds that are involved in the so that the big pension funds -- gives an idea if it wants.
California calpers calpers health and pension fund teachers.
There have have both looked at directing investing directly.
Into infrastructure in Dallas.
I -- with the firefighters in Dallas.
They invested recently on 10% of their mind.
In in north Texas the way.
And what's the timetable on all of this now in New York with an excellent math and governor pat Patterson announced the creation of the sport on Monday this came off the heels of this state academic physician -- -- -- The board is in the process of being created.
And down viewers can continue reaching out.
I'm gonna get talk about it and people seemed a lot of our viewers were commenting on the at the time you know when we -- talking some -- -- sounds like a pretty decent idea or at least well thought out so.
Keep us updated and well on that and -- -- -- nice to get that opportunity and thanks for coming and we appreciate it so we'll see what happens there infrastructure wise.
In New York okay we have a lot more to do here ally enough foxbusiness.com live you're gonna meet the creator shuffle board game believe it or not you.
Ever got to capitalize in the -- one way shape or form so they made a board game around -- -- the game so waiting to see that and also.
This weekend people get a chance to -- the new Palm Pre the phone if you haven't seen it yet you wanna compared to the iPhone the Blackberry and everything else you will see it to stay -- The foxbusiness.com on.
-- -- -- a -- be that the market is up a little bit today were newsroom live -- 1234 New York lead quick update on stocks up by 53 points.
On the doubt -- -- jobs lost and we thought there would be last month that's probably helping to lead to that.
That certainly was an upside surprise even though the unemployment rate itself one -- so that's what the markets are thinking about.
And we'll keep you updated on what's happening there now let me -- -- of the big things happening this weekend from the point of view of pomp.
Is is introducing its new phone which really the company it's been called a lot of things hail Mary pass last ditch effort all this type stuff.
But analysts that we've spoken to -- pretty excited about the Palm Pre and the capability of it in terms of competing.
With Apple's iPhone the Blackberry the the phone from Google.
And what have you the android so we thought -- On a Friday let's look at this thing Clayton Morris from FOX & Friends is here -- -- -- back in a -- but it was nothing against -- she she was having trouble with technology over that wall of either did you give her head.
No I just left to walk by a couple of different -- we're talking earlier by the way she got mad at me for -- it up about the last segment on fox inference that there.
It felt pretty cold and decency kill me around the with.
The -- and I see it.
I was there with our camera photographing every -- every moment -- -- -- if you didn't see you get you to jump on over at some point and you can watch the after the show show on -- you can also catch the segment its online.
Lingerie football right lingerie football team yeah I got a wanted to problem does she have what I had -- leads bought.
I since he got he got hit hard by one of these bottles he's try to run I don't think he's expecting that no I haven't seen it since then but he got like this shoulder credible lingerie model is any wrong with that -- was able shake it off to his credit.
And and he turned around the other way but then it took two of them to bring him down.
And then to make matters worse or better -- -- point of view he rolls over on top of both of these lingerie models and yet well don't jump to the -- this ultra yeah Geraldo thought he just won the World Series he jumps on the -- half -- And he was so pumped for it looks -- -- yet we were talking about this all morning of course comes out tomorrow and officially from from -- which -- Camera guys.
Over there on one you know what you know by the way -- -- -- -- one animals -- -- gonna love this is going to be here.
On the back okay it will doesn't really honestly it's -- that's on the back of industry vision in an Allison MI co -- loves loves using my iPhone -- -- -- She uses it to check and see if he has any you know any different -- -- -- sort of touch internship yeah I hope she.
Little known fact -- camera is a very regular watcher of fox this is dot com.
Sure she might have missed -- -- we put -- on our comment board also so people can look at it there but it so this is a new.
On -- as you are pointing out this is like there hail Mary pass because if they don't do this well.
Then it could mean trouble for the company which by the way really invented the hand held market they pioneered everyone had been -- the Palm Pilot.
And so a lot of -- a lot of people wanted to be able to use her old home.
Legacy apps that they -- from their Palm Pilot you can do that on this phone.
One of the great things about this is you can run multiple processes so right now some scrolling through I've got a number of pages open here that you can see.
Let's just pull up pandora which is music streaming service -- This is a good example of how this works pull this up.
Learn a little bit about that a little eighties music.
I turned down a little bit.
But let's -- wanna just continue to keep streaming music on a jump over to email friend pop -- email.
This is actually phone call and make a phone call text someone I can do that all while all of this is running now -- major battery life down my battery life drain pretty quickly when I was running multiple things.
It does right now -- -- on the I followed the -- the big takeaways all the can't do that on the iPhone at the -- that you could play a song on iTunes then just switch over another program you just have to get out of the first.
But this is this is much more well for people who multitask you can feel more you bring up at a slightly different point that's a native iTunes is.
I'm sorry -- produce.
But content to hear.
The -- pod of course is playing on the phone yet.
Dead that pandora is streaming Internet on here so actually connected to the Internet streaming music then if you're jumping over you're also able to surf the Internet.
Use the camera do other things.
Com while this is all open all these processes are running the same time -- here's this skepticism and all of us -- is ever it's just ridiculous excited about this site like I said coming in to talk to some analysts this this is a great product from -- they've needed it -- you -- the stock price for what it's worth you run through the roof.
Still they're going up against apple on Apple's -- to come out with another iPhone here not so long from now can they really compete from what you've seen well here's the difference and I just -- this openness is.
What people don't like about the -- they don't -- the iPhone of course doesn't have a keyboard now so.
If you want to have that tactile feeling almost like a Blackberry having the keyboard this is a big deal however a lot of analysts inclusion and myself included if I consider myself an analyst.
After playing -- it.
I don't like the keyboard very much you get fat fingers -- -- gotten fat fingers in its it's not as responsive as the a Blackberry it's a little it's a little weird on some of them.
You know some of the -- but if you've never used it before you want all of those features that -- used to having with an iPhone in one device -- -- -- -- I think it's a quality product but Monday the new iPhone is expected to be announced.
So we're expected to see -- new life for.
That one is gonna have looking over comments this event is -- questions for the same time now -- that video.
Crushed that -- boss in Georgia.
That this is -- and I'm very interested the following question is what took themselves and that's that's that's the best question of all crush the boss yes I've asked that same question we saw this at CES you and I saw this -- -- yes they should have been released if if Paul were released this -- April.
This could have been a huge thing for them I think.
It -- it was a huge mistake on their part to release it on Saturday two days later apple is -- -- there announced -- Apple's ready for the bomb.
People want to know does this kill the iPhone three G.
No in fact the iPhone three G it's.
Probably a better device built in this that's really means they're in trouble when -- -- -- exactly that's the current iPhone that you and I both have yes on Monday with a new and I'm hearing rumors this morning that it could be called iPhone video.
That could be the new name for the iPhone because it's gonna have video in my iPhone video Jonathan wants to know about pricing terms of how it's tracing its 299 dollars -- here's another here's another misstep I think.
It's 299 dollars with a hundred dollar mail in rebate who got to -- -- a -- -- who doesn't mail in rebates.
-- we know and I think the people forget them you're right people leave them alone -- Imagine that this morning that's actually -- you she really likes it I won't be because an idea like spreads are at the other.
She had never used sprint friends -- -- -- -- I don't know that to be true based they've had a hard time that I had children and yours and not just the call dropping but the customer service was the worst I get back -- -- and move you're Kenneth Allen -- and what that is -- just hit the -- the home button on the bottom there -- that's sick and having made that.
-- and it opens up fewer home -- ICU.
I and it's really easy to use and I liked -- he had actually better than my regular Blackberry you do Helio -- even -- it's not just talk about how -- this it is but it's it's going to be -- -- -- and I have the -- the other in your Blackberry despite this one well you know you may be on to something from a marketing perspective here in May become a -- women more for women and -- -- No but look at the back flip it open when you flip it open in the look at the back what's on the back of the top.
Amir did I not say the general public demeanor you did you hit it you know so well.
Hey you know but I guess saying -- economic times in the field and do your report.
You know have near -- kind of let it you can kind of look at the Blackberry and it's an area retailers.
You know I -- is you play right into our coverage they don't look at all co host -- that's -- her.
Let's go next and he said I'm curious about when you talked about -- in this maybe -- -- -- for them this could be the thing.
You know I sort of disagree with some of the things analysts have been saying that this is -- last gasp because there's such a small company right.
And you guys are steeped in the business side of this so much more than I am but as a small right off the charts of that when you aren't you certainly know the numbers and as a smaller company didn't even play in the same sandbox is apple.
Or Microsoft they're not even then it -- -- so.
For this to be a success for them.
They'll need a few 100000 people to jump ship or state and extend their contracts for spread you write this energy at home run for that is -- just as -- point and also the market for cellphones may be pretty saturated regular old cell phones but the market for Smartphones still possibly to grow you I think I mean not.
We all have these phones but there are certain pursue a much higher percentage of people that now have a cellphone but don't have a Smartphone yet right and then you know those people might go -- that might not heard apple -- Maybe there's I wonder if there's enough for everybody here -- how big is it compared.
And that is sick of looking at it here and I can't get calendar and I got there I'm going to yeah whatever you get your -- here.
Yeah I have a tracking you guys what -- it's smaller it's three point one inches to a smaller than the iPhone smaller and finally I don't think it yeah he did he's got a lot of -- stuff on here.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well in the second that we we what's more important that's not I don't really you know physically she is here it's my second now.
Got a -- flash a flash are gonna put that up -- foxbusiness.com I think people can see your body can email us at the -- will let me -- -- -- screen resolution offense.
And will be done.
C'mon -- on well it's a little slow this is who have a little bugs that I had actually the other night and it.
-- -- which camera injury I think -- human side.
Pact I think to -- there that's a good shot me.
You -- you could you not to FBI modify the system come into the aboard.
See -- you do that I.
I feel like I do I really like it and if I wasn't an iPhone -- just don't think it's an iPhone killer it's a really good phone it's -- really really well made -- how much it actually talking.
It sounds great speakers fantastic also which is impressive speaker I think actually is a better speaker than the iPhone -- yeah.
-- could -- that that's because children got a guy he can play us out.
Yeah it's a I asked earlier freak accident that you can play that song means the songs out loud why talk on the phone rep says multiple applications -- that we -- The soundtrack for.
-- tickets directly what seems a little deranged.
This -- got a it's -- it's she always wanted to -- all right.
-- -- -- Like hey I think I learned that that Humphrey were just talking about it because Apple iPhone and apple excite great product that does it work for me.
But -- I like you -- I like the keyboard up at a cost of -- having to tax the pictures it's definitely I don't like that and if I had to have a quick enough.
And I now.
I think I -- that cleaning everything you think it comes on he gives me a list of things to shop where I -- I.
I have to they knew -- -- new pump free play the computer spot.
Banana nut but you need to get a netbook and -- it I didn't get the designer netbook with that this that the designer fabric on top.
White who was OK if you spend money but if the government can spending money like this -- we got man's -- -- I have been looking into that this week so Gary das joins us at a DC.
OMB watch where he is the -- and executive.
Director thank -- -- for coming out we appreciated we've been talking all week long about.
The federal budget deficit and I wonder what you can.
Kind of bring to the table here in terms more red -- coverage and where we're going what worries you most at this point if anything.
Well with regard to the Recovery Act I think we want to know.
Is the money actually achieving what it's supposed to do which is help create jobs than to sustain those jobs and to reinvest in our communities.
Is it so far I mean what of what looks to me what to -- plus and minus what are some of the what are some of the things that have been done right -- that stimulus package so far who will work through that and I'm sure there's some things that are -- that haven't worked out yet.
What's remarkable how fast they've put money out the door you know you -- spent about 44 billion dollars.
Most of that's going to entitlement programs things like Medicaid unemployment insurance rebates for Social Security food stamps.
But money is about ready to go out the door on transportation projects and education projects and host of other kinds of spending that will help -- hopefully stimulate the economy.
That's all the good stuff that's added benefit that yes they have -- move quicker than people thought they would in some cases -- -- that's if that's what it was and that's that's and well I think that the questionable part is how can we track what how the month where the money is going and how it's being used.
And that's the key piece the president promised us that we were tracking every dime that is spent.
We created government created a very powerful web site called recovery Jacko.
But if you visit it's pretty much a steel site right now -- here's a new things being added all the time.
And we really want to be able to put in if you will your zip code or in the name of your state and see how much money is gone and what went to.
Right at that I actually we retirement asserted that we are talking about recovery -- got yesterday on the -- I obviously do you try to use it as much.
This is like the best bet that I can think of it try to keep track ball this site was on it yesterday and on an average.
Every week -- two -- just see what's going on here but.
What could be done more what to its.
Be done in addition to that -- what should be adding to it in there's things I guess that are missing out on your point.
Well we're we're.
If you will the administration is driving 120 miles an hour car that can only go -- hundred miles an hour.
And yet -- need to be going 200 miles an hour this is happening so fast.
And they've got to trying catch up.
It seems to me that there are host the policy issues here one of the most important issues is who is going to have to report about how the money is being spent.
The money is going down largely to states right now the state make give it to a city.
But then the city gives it to a host of other contractors and we'll never know who they are at this point.
And -- the government says that everyone who touches the money has to report.
And that's the real issue at this point.
If they all report if everyone reports that touches the money.
And they report to some central place we can really track who's getting how much money and what are they doing.
-- -- the thing we wanted to stop is the waste fraud and abuse right.
So we want to make sure that the mayor's brother lies in getting the money for -- you -- that brother in law is getting it it's for a good purpose.
We can't do that right now under the current -- set up that's -- that's been structured.
I guess it's one thing that I mention there's a lot of things to get you there at the wrap up -- -- really click here but I saw that you.
Became part of did that organization and advocacy organization back in 1983.
Which is often where are comparisons are made from this recession back in 19818283.
Period I think you've been in this at this a long time any advice to the folks out there that didn't want to get and Bob I don't know how to get involved with and I know helping this process along.
Well I I am part of a coalition called the coalition for -- -- recovery.
And if you just say that word coalition for an accountable recovery and put.
Dot org you can go to web site where there's information and you can collect more information about what you can do.
Great I can't think -- that I had.
Great I I just I do think that the public has a responsibility.
And a role to play at the local level to make sure the money is spent right.
And this is where state web sites also come into play every state in the country now has a Recovery Act website some -- better than others.
But all of -- have you can track in many of them who's getting how much money.
This is a real opportunity to make sure -- -- We are really doing this right right the issue isn't just waste fraud abuse issue should be that we want quality of programs want to make sure that money is really being used.
To properly investing in our economy.
And properly create the jobs to sustain the jobs that are available we would also want to know what kind of jobs are being created.
Are they low paying -- they have benefits.
That kind of information requires collecting the right kind of data in order to know whether or not the programs are really achieving what they're supposed to -- This sounds great we're really talking about.
What Gary would have to wrap it up -- the -- they -- -- -- -- -- time that we would like to talk to again.
In the future because Jack mister a lot of our viewers really can relate to your cause and will want to get involved so Gary thank you very much what what I negligent if he soon.
All right -- good stuff out there that's an interesting conversation that we've been having and I think you were even over fox newsman Sam Darren mentioned this earlier but this this proposal that -- DC.
A for a national infrastructure development bank we were talking this kind of goes and discuss -- -- -- earlier and infrastructure and Eric lackeys and research director at the campaign for America's future he's with this in DC to talk about.
That we understand that you know members of congress to put this forward.
I'm not sure they -- understand exactly what it is still in what they want to deal with this infrastructure development banks have gotten tell us.
Well let's start the beginning America is.
Falling apart we're falling apart and we're falling behind.
Our roads are potholes are -- revenues are over well -- a gynecologist.
-- it give -- second here as much as we would like to start the beginning and I don't mean this in the bad way shape or form but.
I you know we know that -- -- we talked about it we know that the so they wanna do exactly what about that and those problems because Sam -- some pride in here -- she was here earlier she outlined a great job -- telling us.
How much work we need to do with our roads and bridges and everything else the -- that this development bank do.
And she and she might have gotten as far as and how are we going to pay for -- to this development bank is it cool for payment so the notion this and think bank.
Is that the government's pay in the federal government puts in the fundamental seed money state and local governments put an additional money.
This is then that seed money think of it -- like.
You know in the old days deposit on -- house -- you put 10% down.
And the bank comes up with -- -- the federal state local governments put in the seed money.
Private investors investors can -- be attracted to get in on this this this action.
And it becomes a large pool of investment money.
Where's the additional money all right and -- lowered spending in the stimulus so I mean it is their politically for this.
There and in this is new money -- notice the leverage because notice that the that governments are putting in some money.
And that the private sector is putting an additional money the Recovery Act is all federal money if not statement not local in this and most importantly it's not private.
Now the other change here is exactly how was the money spent and the accountability question.
So the money goes into a pot and then you have the expert commission members appointed by congress presidential.
Did you -- your superiors saying it may say expert commission members -- and -- one person -- return time.
It becomes that.
Lob it more -- bureaucracy it believed his bailed out all these banks I think this is a fascinating idea.
And really -- is it happening time is now the time cannot physically be -- -- your bank does it need to be bailed out just like obvious that they.
This is why it needs to be carefully put together more carefully put together -- some of the past stuff has done so we can't let our anger about how badly things were done in the past.
Prevent us from doing new things in the future all we can do is look forward and go ahead weapon can we do -- -- I just question that can we afford it now I'm in putting you in my guess is a deficit.
The investment deficit is seeking us our roads are pot holder trains are slow -- our broad -- The investment deficit is seeking us this is long range equivalent -- deadly -- we going to help us even more in the next few years now.
The investment deficit on this long term physical infrastructure is seeking us now.
The fiscal deficit is a -- But when you're like -- like any other household.
You have to buy -- in order to do what about the depth right now out of operating since your long range deficits your house your trains your cars.
-- finds them on a long time horizon it is not pays you go.
Pays you go -- gets us into trouble here -- Boys Don't -- your house as you go see you buy your -- over time he's raised taxes this.
With that there there could well be what needs to raise revenue public revenue in that way one of the nice things about the bank is -- attracts private sector money.
There is and there are estimates of 40500.
Billions of private sector -- just looking into investment in this kind of a thing and that's airlift called the itching to get in.
But they don't have a mechanism to do it so that we had to -- a public private partnership -- the answer -- you know with with a different.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Serious problems of transparency and accountability.
That's why this bank will be built around transparency accountability.
Who's getting the money how is it being used and that you can call that bureaucracy if you want okay got dropped -- diseases have somebody give -- -- check Dalembert isn't working.
And I know arm -- -- -- -- -- thanks for coming on and -- I would have a little more time -- explain it but does Sam did so earlier so pretty good discussion.
It will look talking to Eric thank you your -- -- all right panel will hear an elaborate -- my Calgary and I know and I point this.
It's an update any kind of government spending if it's a -- -- in a little we're gonna show -- would I have fun.
Yet with these bailouts.
Promise -- I think what makes peanuts is why I -- -- thank god the show's almost over this is no offense our next guest.
I'm sick of talking to people from Washington -- you can't have a conversation I can't -- we can have a conversation on television.
That's my problem I hate talking points don't like to use them and if you can't have a conversation will you answer questions they'll come up.
I think that's cannot come money that -- that you get up and absolute -- not about point of view I don't care but have I asked the question I expected answered.
You take that to heart.
After our next guests I have enough -- -- I have an ally since just it's okay all right let me.
I extend -- the card games not gonna happen here this -- this is going to be fun.
Sheri and -- So people.
Aren't -- journey so why would you talk about.
And and listening to it and we promise that you need to Darlington and -- really now I don't know about if I'm glad you ended -- games that came out.
-- finance period for all of us in America -- -- to start we you can't -- at the beginning I've just come up.
It came up my husband's an architect.
And that business was very slow like everyone in the industry you're from Florida -- -- from Florida so we got hit very very hard.
And we have a lot of free time on -- hands up on small mom.
And we were having family dinner one night we were trying to explain to the kids with the bailout was about just how their kids I -- eleven in the ten and -- -- To hit half -- -- heart might and I.
Thank you -- -- it.
So we're trying to explain to them and we always have family game night and we were like wow that would be -- really cool idea.
So that's how bail -- the game was born because we have family game night and it's he won't even let you obviously it's a great idea can you want them to learn right you want and they'll know exactly what's going on but how does the game has to get work and when you lose you as an.
-- -- Did the object is to you start out as a solvent bank you're one of the banks you might be liquidation Brothers are greedy investors of America and -- it's basically -- on.
The current events that are going on in the object is when you get to the end to have the greatest amount of debt and then you get a bail -- and win the game.
And they know -- you know is the online and we -- guys got us on Twitter.
And it's a where's my bail out well America here surveil and you can play it again and again it costs less than taking your kids of movies from my -- hot.
Costs thirty point 99 and where you buy out our web -- right now www.
Bail out the game dot com.
And that we've had.
Great response -- -- so we're very --
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