Also in this playlist...
This transcript is automatically generated
Hey happy Tuesday -- -- glad I'm Tracy Byrnes you Dow's down 33 points right now.
At one point though they are liars he could see that little -- green and when we were showing you the Dow it popped up America's -- that US wholesale inventories rose.
About one point 4% now what does that mean -- means that if inventories are up and you were stocking up that means companies have been.
Thought that somebody's gonna mound by the stuff Sunday -- they're stocking up on product they therefore presume that they're gonna sell something down the road so as a result the market.
The -- up for little bit but not so much.
Along the same lines -- shopping -- research actually researchers are seeing are potentially presuming that there's going to be jump an online holiday sales as much as 16%.
-- -- minus -- a small percentage of you can believe this of shopping occurs online people still go to the brick and mortar store.
It doesn't -- me because I don't mean whose job anymore I -- everything online but that's because I have like fourteen minutes left to get like all my extraneous errands done and if I can click away.
It's not have been and so but they're saying that consumers are showing a willingness to spend this money and they expect that online holiday sales will be up 16%.
You know don't forget we talk about -- yesterday free shipping dot org.
Deliver papers shipping when you order things on lines of the art in order certainly don't pay to have the stuff shipped.
Will there that Chevron's gonna buy atlas energy for 3.2 billion dollars so we got a little and they activity going on in the energy sector all the energy stocks are up.
At least they were our markets turned a bit.
Dean Foods on the other hand profit has dipped -- 51%.
As Cris Carter said on -- Earlier it means that no one is buying Sergey.
-- does -- -- sausage known as buying sausage and they're saying that their milk.
Division is suffering as well and well you're seeing inflated milk prices maybe people aren't buying -- moment now.
It is just doll correlated in the now.
I think that being said -- Dow's down to 38 points from neglect to rich Edson right now Dan in DC covering.
And again -- this all the talk about rich.
We're on the brink right now aren't we.
Well at some point early next year we're going to hit our fourteen point three trillion dollar debt ceiling so there are really two things going on here there's first of all.
You've got to raise the debt ceiling you don't raise the debt ceiling you've got to -- two to three weeks maybe a month the treasury can move some money around.
Pull some money out of pension funds ask some unspent federal agencies to give their unspent money -- navy game and I know you're sending my debit.
Back and really going on for month after that you've got problems paying your bills you may not even be able to service your debt which would mean a US default possibly.
That something that the US has never done before so there's a fight on Capitol Hill first off about that and also.
About earmarks boils down to at least on the senate side Tea Party supported candidates like Jim -- or Tea Party favorite really he -- -- in office Tea Party came out.
And -- our leader Mitch McConnell McConnell wants your -- to remain he says it's something that the congress can do.
To direct spending as opposed to just giving the money.
And letting them decide how to spend it so there's the earmark fight in the house Republicans want to pass an earmark moratorium.
Not an earmark -- justice.
Indefinite or definite period of time that they would.
Not use earmarks -- pledge not to use your marks and possibly allow that.
Two to go back into effect some point later there's also a discussion Tracy.
About military spending and that's really you talking about 60700.
Billion dollars a year in just military spending it's something that many Republicans have defended.
Many Democrats have said that we've got to do something about bringing that down and there are other Republicans who sided with them.
And that's an interest in case especially in this fight take a list.
Well that we're gonna have a very interesting intra Republican Party fight over defense you get incoming senators like Rand Paul.
Who just yesterday.
On the weekend TV shows said that he wants to cut defense.
Other Republicans -- our defense talks and don't wanna cut defense at all.
So what does this all mean Tracey -- well we're gonna have a spending showdown because all indications point to the Republican House.
They're gonna have to pass an increase in the debt ceiling.
With about sixty more Republicans many of them Tea Party favorites or those who ran against increasing spending and then what are the first votes have been taken the first two it reminds.
May be to increase the federal debt limit so they're gonna want something an exchange from Democrats in the senate.
Democrats in the house and from the Obama administration.
Possibly that could be promises of spending cuts down the line.
But this is a fight -- just beginning to shape up here you've got the earmarks you've got the debt ceiling and you've got a Republican House a democratic senate.
And a democratic president.
It's going to be fun maybe.
For -- it it's it's confusing -- I mean I'm confused because.
It seems very simple right you're saying right.
-- blown -- through that -- of so everybody else cut spending and it's so it shouldn't -- be one place it shouldn't just be okay we're gonna cut military we can't cut everything.
And that's kind of where we are right so.
I don't understand even why this is an issue with these guys how come they don't just wake up and say we gotta do this we cannot keep printing money.
Politically it's such a difficult thing for many of these Republicans because many of these Republicans ran on a strong national defense and nobody wants to see their opponent -- in -- advertisement saying.
That in a time where we have international terrorist looking to send printer cartridge bombs to churches and synagogues in Chicago that we're cutting back defense spending.
On the second point you know you look at across the board.
Even if you look at the Republican pledge one of the criticism from small government and deficit groups with here here in Washington.
About the Republican pledge to America is it really didn't mention anything about entitlement spending.
I talk about the stimulus plan 816.
To 840 something billion dollars.
Up over ten years it's a pretty big costs it pails in comparison.
To what the obligations the federal government has both for Medicare social security and Medicaid health spending.
I mean you're talking about tens of trillions of dollars.
Over the next few decades over the next couple of generations.
And that's something the Democrats and Republicans some are beginning to throw out ideas.
But there has been this defensive entitlement programs.
On the Republican side not wanting to raise taxes to pay for benefits on the democratic side not wanting to cut back.
Any of the benefits for seniors even if it is 253040.
Years down the road.
So there's an enormous fight and there are these sacred cows in government the military industrial complex.
President Eisenhower was talking about that in 19591960.
So here we are still fifty years later.
And we haven't gotten control of that and entitlement spending continues to be a problem that -- blows the stimulus spending out of the water.
You glad it if -- states because it's all -- favors at the end of the day right so here here's another run for office and here's my platform how many can also security.
I'm gonna kill Medicare make -- kill -- not off.
I'm not cut military spending he's I think we -- to defend his country regardless of what it takes and then one on the money left over -- and here's an idea how many get rid of Pelosi just yet.
As -- my platform.
I would say that the policies yet argument may how -- this.
Actually believe it or not the jet was in response to another AB took about all this expenses in response to September 11.
Congressional leaders she's she's right now until she hands the gavel over presumptive leader John Boehner.
She's third line the president of the United States and god help us that's another security and we are not -- -- again you look across this.
And a lot of these lawmakers and and a lot of their constituents.
You know they look across the board and they say okay.
I want you to cut why can't we balance the budget but you know.
Don't touch my Medicare and don't exactly as -- security and don't let this program I don't touch that program so.
You know there -- so many voters out there who look across and see you can cut somebody else's program but don't touch mine.
And it's -- very typical environment especially.
You know congressman are out raising money they -- for reelection every two years.
They -- constantly trying to -- people happy and what we have now is the ultimate compromise because we had Republicans.
Unwilling to have taxes matched the level of spending that they had in the last decade and you have Democrats.
Who are unwilling to have spending matched the level of taxes so and last one of the parties -- this chain or you have something we're taxes go up and spending goes down.
I mean -- can you imagine the political firestorm if you raise people's taxes and cut their benefits.
Good -- -- reelected.
In a joke but to -- and you don't -- it cut taxes and cut spending.
You know the in the we'd see horses fly again and unicorn to come out and flowers and -- and then Saddam ever -- right so.
You're right it's almost like his political stalemate look pretty much firmer because no one's gonna give into this.
And it's important and I think it's unfair to a lot of families especially this time a year when you're -- and you look at it the money comes in.
Yeah holiday spending coming on the scene I can't -- a little Johnny the stuff he wants because I don't have it.
And yet Pelosi seems to find the extra cash to fly across the country.
-- and and we knew it and especially if we forget about holiday time you know it we're getting to the point now it's November and a couple of months people are gonna have to start pulling out there.
W two and W four forms and looking out.
How much money they -- to the federal government how much money they expect to get back.
And they don't even know what they're tax rates are going to be -- in -- IRS right now.
Is is getting ready to publish withholding tables that have the bush tax cuts completely expired because that's the law they've been given.
So you know.
What congress does in the next couple of months when it because it comes to spending and when it comes to taxes.
And it really all plays into this entire pie and and you have lawmakers who who it's it's very tough.
To make a tough decision and it and it sounds silly now does -- I got when they get here you know they want to defend social security and they want to keep low taxes.
You know there's a finite amount of money out there and eventually.
You can't spend sixteen trillion dollars in deficit spending and expect that that can be sustained.
It's not gonna happen I know it's hard it's just frustrating that -- -- in this.
I'm an M throw you out there than rich -- -- for you on the next ballot.
Anderson is -- she's laughing she's not laughing she's she's encouraging you Susan I think it's funny moves slowly make -- that is -- the Bull Moose Party any kind of revive it.
Instead in I had an idea -- stands out of a New -- these.
And I'm glad as I said it there -- -- and I Levy -- DC thanks so much for Thomason.
And breaking news that our debt is going to hit fourteen point 32 million -- the surveillance here at -- -- morning.
-- Smith is here that said Simpson sat on this the doom and gloom that we were just talking about not could be forgotten rich Edson.
Either way not the amazing political report IVF but not on the F funnyman but I -- -- -- -- with -- in Washington DC and he's an -- -- He's the every man and centers and more importantly.
That's why -- -- that's.
That rounds up -- -- exactly why he's a Renaissance man because most of us are women and Renaissance could have something.
Snooki not include our association -- -- doctors about what's going on and in her specialty world and the commodities corner I mean to me.
I've been saying there's food inflation storm weren't you sell me on looney tunes it's mainly because you're hasn't seen inside a supermarket in I'm going on think that Blair's.
And it's a great point you'll have to look at the commodities markets you'll have to look at the -- -- in the grocery store stocks and whether prices going up or down.
He does -- -- at the grocery -- you don't immigration threat people watching go to the grocery store you've probably already noticed.
These price increases whether it's in the dairy -- the meat -- -- read out.
-- picture this cereal aisle I mean the price of these greens they're hitting multi -- highs there op again today.
I'm not just on the weaker dollar Tracy but there is also US Department of Agriculture report out this morning that showed.
That this crop although it is historically pretty big for corn and beans and wheat.
If it's not as big as all those economists originally projected.
So that price -- of all these commodities are skyrocketing again.
That would normally send prices lower but they're still -- the fact that the crops so big but it wasn't as big as it comes originally projected.
To wake Tracey there's all kinds of stuff going on this marker -- -- I was actually got off the phone.
I'm an LSU grad -- and it and I frequently called down to the agricultural department down there.
And they grow all the greens now -- -- not as much as in the Illinois Indiana area but what they do girl out of -- cotton and we Bob and are not cotton prices for its sixth straight day today the price of cotton is reaching a record to limit up in today's trading session.
Never seen this before in the cotton market and not only that there's.
Tons of hedge fund in large speculator interest why -- why why why is short it's.
There's a shortage and bit there's a depletion of the overall inventories.
We export a lot of cotton out of out of the United States he goes to China goes to India caused all these places all over the world.
-- mainly we grow cotton in states like Texas Louisiana Mississippi.
That's -- he just pitched to me.
The fact -- we're seeing we are seeing grain prices that multi year highs but cotton prices that record highs.
-- -- farmers you know scratching their their head thinking through the -- next year when I wanna plant cotton.
Hi there hi -- -- you have.
A farmers contemplating whether or not they want to plant cotton to read the benefits of those high prices and then there goes the grain prices up again because they're not sure it's is that lumpy is not exactly.
Really unbelievable story can develop -- so -- options market on -- soon enough.
It's really really expensive to -- -- to buy a teacher only given if you are already up pains -- announces that the other raising prices.
I've VF corporation the maker Wrangler jeans and -- and choose North Face a figure -- raising prices anybody out there -- as cotton and their materials.
Liz Claiborne you think that the high ends on affected.
Liz Claiborne Carty said that they're gonna start to try to use different materials to avoid using as much -- -- -- polyester.
And other acrylic fabric now please and -- -- -- for adolescents -- second although it isn't it almost like.
They got you.
Because you need to buy clothes and an underwear did not do it right and looked at me -- kind you're not gonna -- around your waist so.
You're stuck paying these prices you're already paying these prices and we talk about cotton it.
And that's the one thing you and I -- but this class that we talked about commodity prices how every time we get those inflation numbers.
They strip out the ever volatile food and -- it is too volatile and it doesn't give us a real idea of where inflation is.
We ask ourselves why any -- bowling -- why would you do that.
We're affected every day by the food that we eat in the clothes that we where.
These are the prices that -- on a day to day basis so that's why we pay more for -- teacher took her underwear.
Prices are party -- going up there and clothing companies haven't raised their prices yet.
Are saying we're probably going to have to you.
Food prices -- -- said you're seeing prices go up at the grocery well guess what across the board.
In and Fed Chairman Ben Bernanke did warn of this -- -- still says inflation's not an overall threat.
He did say that this is going to be a threat to the bottom line of major corporations I was just looking at the prices -- General Mills Kellogg.
On a day -- grain prices are soaring the stocks of those companies are down this raises their input costs and then I looked at the stocks of the grocery stores Kroger save way.
Their stocks are down today to use it didn't.
When we talk about the greens it's not just looking at the price of corn wheat cotton -- -- all of us and it affects all the bottom lines.
So many come the last time you were when we talked about beef sugar all that's I was saying it's just up that I serve every night for dinner steak sugar corn hit.
Should more sugar but it's all back up rate and and the worst part about it is they're making big federal decisions decisions on how much -- -- -- -- back in the economy.
Based on a student calculation that doesn't include the stuff that we use every day so.
Basically you're referencing the latest round of -- -- be re praying all this money devalued our dollar and raising the prices at the consumer level on a very immediate basis.
Some are arguing that it might be short term short lived may -- those prices only have to go up a little bit to meet these rising prices.
Not so fast we continue to see the price of these commodities rise you better bet you're gonna continue to pay more for your eggs or milk -- -- -- -- at the grocery store.
-- beautiful -- it's QE2.
Lower dollar to may have this story I mean Tracy -- -- leaving out the fact that places like China India are consuming happy for the first time.
A lot of families are coming into the cities they're buying apartments are buying cars as -- the price these commodities are also going up as a result of emerging markets -- man.
Little -- the story today that we're talking about the weaker dollar and an -- weather concerns in Texas I mean there's a bigger.
Global bullish picture for the you know that little piece that bothers me the most through this whole thing is that cola calculation the cost of living adjustment calculation again does not include this stuff off and it's -- seniors that are getting -- right because they don't get a cost of living adjustment -- they're arguing.
Now they might get a little 250 dollar check to appease them all -- they deny racial security because of cost of living adjustment because -- Stuff is not and the USDA authority put out their estimate for years the average grocery bill for the average American in this country.
It is going to go -- by the end of read all parents had and the whole page secondly -- and called it.
You know the funny part is out of the US stocks these grocery stores today although more down today because they -- they -- raising the prices to the consumer all prices are going up.
Hope there isn't the only one that was not.
And they just know that they had its turf like in elastic demand I mean people shop whole foods they barely look at the tech and -- -- -- And then did jerks like me -- try to connect you -- then I'm defeated and.
I know I guess I love it -- you the greatest figure out you know you study accident.
-- is down 32 point hasn't really -- and we get back when you talk about that in my favorite things in the whole wide world.
Cool chic hotels.
We'll be back.
Looking at the -- live -- Tracy -- -- Dow down 35 points we talk about how wholesale inventories actually were up a bit -- could see the green on the screen.
It popped a little in anticipation but since this -- was pretty much dead on what's gone on right now.
Commodity prices going up your stocks are getting killed I don't care what anybody says there is inflation out there walked down the Alley supermarket and -- -- cry.
Whitney even if you -- a coupon she suspended a load of money it's gone up and it's not in the dumb calculations that the -- and in DC so someone has to -- them up.
There's inflation out there.
I -- make a poster and send it down.
It's not about more fun way more fun things -- -- -- coming up a lot of people talking about traveling these days interestingly enough through this whole thing the travel industry.
Did not -- Britain really as bad as people thought it would.
Thankfully Breck Eisner is here with us right now he's the CEO of Morgans Hotel Group you arguably -- are these the founder of the boutique hotel.
Creator and am pleased to see continuing leader -- hotels.
-- panicked parents you know if you go to -- timeline personal you have a long history in this business they do.
I didn't realize the Waldorf is part of your resume and it's it is was one -- the as a general manager of hotels.
The Waldorf who is the paradigm of the art yeah people exposition -- -- -- into the hotel business.
To be honest yes I love taking care of people really -- This is a business that excites me every day.
And just making people happy and offer and that that was little.
Bar so it and that is softest -- on the planet when people just can't get home at night because that's where they'd rather be.
We have an opportunity and hospitality to provide.
A place that you can make home for the night.
In Morgan's case.
We make it.
Very interest team and we tell a story.
-- the cancer with us so there's this whole notion of -- -- it just seems some of them there's -- against -- here in Manhattan Morgan's welts and Hudson.
Soon to be -- John and SoHo which we'll talk about.
And then of course -- infamous Delano in Miami.
You manage the short club.
Now we're test at the -- in London Boston us.
We're in London San Francisco the Clifton.
And since Angeles Los Angeles -- -- on which is also what I stay I have to say I stayed in a lot of these hotels and they all have that same.
Fabulous feel to them how to how did you created.
It to each each hotel.
Starts from the premise that were telling this story.
We want our guests to feel that when the doors open in the lobby.
It there really curtains party and our guests -- players walking onto a stage where they are the players and where the audience.
And that's exactly how did that the Delano.
When you walk into the Delano those he hadn't -- velvet drapes practically just as seen that there wasn't as well as they opened right up and you do feel like that.
It's too we want to -- Delano -- you're walking into a three act play him.
You -- creates the experience.
Our customers are.
Or more into the experience for not just selling accommodation.
It's -- is that is that what's.
Allowed to hold -- through this because your stock price as a matter of fact I looked over the last years at 99%.
-- is your competitors.
If you can call them competitors the Hyatt Marriott other hotels -- half of that.
Well where so many brands protecting big brands.
They're going for sameness in an absolute consistency.
Our first check mark is originality.
We're going for that where the un cola if you will.
-- that revenue per room.
This -- most recent quarter was up 10%.
And ebitda was up 25%.
So even in this time you're stilts you're selling -- you're looking -- -- but we are led by New York.
And it -- an interest in London.
London was actually.
You know when you look at the it's compressed supply there's an extremely high barriers to new supply and in the in the west and in particular.
And it is Neil Diamond said the higher the top the longer the drop.
-- have the top was not as high in London so the drop wasn't as great.
But London was the leading edge of our recovery.
Followed right by new York and New York has proven itself once again to be the deepest.
Broadest market on the planet -- is combat like a freight train.
It's amazing to me though although I will say if I am a visitor to New York.
I'm staying at when he tells I'm not -- to -- I can get the Marriott just about anywhere else he could almost understand that but to me the fact that.
You have three year old -- and now opening a fourth.
Just in town.
This is a -- it's close to a sea change for us as you'll find this is a -- -- and and sorry and so our first downtown hotel.
And it's right and that lovely cobble stone avenue Crosby street.
It'll have a marvelous restaurant atmosphere a food and beverage atmosphere.
Called imperial nine.
From straight from Montauk at the -- lives Sam tell that.
And for the first time in -- perhaps the first time in New York.
We'll have Dave -- fish the fish you order at night we'll have been swimming in the morning straight from the east in the Long Island.
Benjamin Ortiz is the designer of that there's a -- on down in Miami it's and you made a decision to get off the main strip in Miami's Biscayne Bay.
It's a hotel resident though can you explain that -- why go into that well first of all.
We've never been hesitant to go into places where no one else is quite gotten there.
When you think about it when we went fourteen years ago to South Beach.
It would give it.
It was urban blight right here -- there was nothing there we became the icon because we chose to go where no one else went.
We've done the same thing to go to the inner coastal we think it's time.
To have that sense that atmosphere that we offer at the sunset bar that goes with our -- -- -- sure sure club.
Or the lewd or -- scene had to -- about.
Which is status now.
-- -- -- started with this whole notion that Madonna was a part of it which turns out she just owned a piece of the restaurant.
But it's the -- -- took off and it still actually it is the place to be on the -- -- work when you have the chocolate two doors down are you competing with yourself.
If there's there's two different at the spheres.
Actually as the -- is Delano has matured.
So has -- return guests.
In fact when we -- did Delano to.
Three years ago now.
We found we needed to add accommodations that work.
As good for families as individuals because the original hip crowd that came to Delano.
They're married they have children now back and they're coming back it's a bit younger crowd -- short club and a bit quieter crowd Mondrian and and the inner coastal.
That that has to be my next stop so what's next for you because you're on a chair I mean it was almost what it's a hotel a year basically if you go through the timeline.
We think particularly as you know with with prevailing winds that are back.
We think now is the time to look for compelling new growth opportunities.
Started really with their own backyard we want more in New York.
We want more in Los Angeles.
We think there's room for opportunities domestically and Chicago and our big target Washington DC NN end.
-- extended a bit further.
International opportunities we've -- brand defining assets in London weather Sanderson and Steve Martin's lane at London's -- West and that's that have been brought that experience that unique experience that we never wanted to be considered -- -- -- customers thought we were a chain.
It's stuff coming right.
We want to be -- it would that he can he's that he's going to go to the European continent.
Into the Middle East and South America you've redone restaurants in the opening your they've consistently reinventing.
Had to have go to cut back on prices and having had to be a little bit more Jenner and generous -- -- As we came through this this you know.
Of the six times -- full economic cycles have been through and business.
This was clearly the worst.
We like other hotel companies emerged leaner and meaner.
I think we've gone from -- more is more focused to a less is more.
Less is more being more focused and we think we'd rather dedicate staff people to serve our guests than having multitudes of managers.
Hovering over our staff watching.
-- message that has his work much better for us but at the same time we've reevaluated.
What makes this famous and what makes this famous is our lobby scene and nightlife and we looked at royal -- right here in new York and said this needs to be people -- sloppy.
Where one could order food if you wish and a good example we -- of last summer.
Last night we had the world premiere for King's Speech and tonight.
A short story long.
Will have its premiere party as well the scene will be rocket.
It's funny because I just got -- now saying that it's.
Reopening re brand new 44.
You do you gonna do this with all of them because you did with Hudson.
Oh yes when we did good units of Hudson.
That was the gymnasium.
And track of the -- women's athletic club in the 1920s.
At one time -- was going to become a ballroom.
We don't do -- yeah we do -- -- we did good units.
As the hippest events base at Columbus Circle to bring that crowd up from that was edgy downtown locations.
To have just as strong Iraq in time at Hudson as they would another -- -- going down there February 2011 is Valentine's Day after his -- today.
Again and Benjamin Ortiz is designing -- them on -- SoHo.
It's got he got this day and I must say that it.
The prices are reasonable.
It's now is it's if anyone is planning the trip to New York.
Do it now because prices are just going up behind us -- -- you booking a for the holidays evidence that this Korea that's been cited anonymous isn't.
The shopping season's going to be fabulous this year.
Good for you.
And I and I will say -- -- so my favorite I had been -- -- -- tell them on Leon LA they're all fabulous wonderful if you get a chance.
Go to one -- -- thanks so much for being thank you.
Great to be with you.
Bringing you right back to me -- -- as we speak.
I think in Miami and warm weather I got to go out this image is -- right -- because Adam Levin is out there talking about.
Adam -- really gonna do credit check on me when I go to get a.
Very high percentage of employers do it some do it for everybody some do it for only people that will be in certain positions.
But more and more employers have been doing it.
More and more states are thinking about banning it.
Because people who have been negatively impacted by the economy.
Could get hurt on the credit report so all of a sudden it's a double whammy is it not only get hurt.
But it hurt your credit it that it hurts your -- It -- these in my writes it means you have a right to do it.
Employers have right to ask.
You certainly have a right to say -- I'll give you consent to look at my credit report at all but if you do.
That's almost like being pulled over on a potential deal -- and refusing a breathalyzer.
But you know the outcome may not be so positive.
So basically am stuck -- you tell me I'm hitting a rock and a hard place.
I don't really you know my credit but it -- -- I don't really have a.
-- I want this job.
Pretty much if -- applying for a job you have to kind of let them take a look at what they want to look at.
The argument is they're taking a leap of faith.
In terms of deciding whether or not they want you to come work for them just as much as you're -- little -- That you want to work for them and a lot of people feel that a credit report does have an awful lot of information that gives insight into how you.
Manage your life.
Unfortunately in the economy we're in if you were terminated because a company downsized it had nothing to do with -- -- And it's spilled over into your ability to pay bills you're being very unfairly impacted.
People now know.
That credit reports play a role and as a result it's important for you to know as much as you can.
And be as prepared as you can read your credit report because it's your reputation all asset I -- -- and you need to make sure you report is as good as it can be.
And I understand -- but you may appoint and people on the -- had been making -- -- point that.
If you're laid off -- inevitably stuff happens -- so -- being penalized because I lost my job -- -- economies in the toilet.
Yeah -- DI -- it goes on.
-- missed a mortgage payment and that by the way the kiss of -- -- mortgage payment it's like a black mark on your credit report for what seems like an eternity.
-- -- -- -- -- -- Less -- I totally agree and there are just as there are some banks that -- relational in terms of granting credit to consumers.
There are a number of employers who don't care about the credit report very much more interested in knowing you.
And looking at UN analyzing you but also remember war on the subject of credit reports.
The it is come out that at least 70% of human resource department scan the Internet.
Looking for evidence of whether you've been responsible or irresponsible in what you post and where you posed.
And just as important.
As being sort of up to date on your credit report you need to be up to date on where you are -- line and the kinds of things you do.
And the fact that one day something you do could come back -- you.
Yeah I -- it is all the time thank god there were no camera phones while I was in college.
So let's talk about now this -- may 2010 credit dot com -- survey that you did.
And it says that 50%.
Agreed that they should be and they -- this practice.
That's more than -- -- No question.
More than the majority agree there should be a ban the problem is though that states have been very slow to act.
And as a result we're we're faced with the reality.
And reality is.
An awful lot of employers are gonna look at your report.
Whether it's fair or not it's reality unfortunately we're living in a very harsh time right now when it comes to that.
So knowing that.
Go to annual credit report dot com where you can get a free copy of your credit report once a year from any of the three credit reporting agencies.
In addition to which under federal law if you're unemployed and going to be looking for a job within the next sixty days.
You're entitled to a free copy of your credit report to see what it says.
Just as you are entitled in the event you receive an adverse action which means you were turned down for credit.
Or you lose a job coming in your credit report you're entitled to a free copy the credit report as well so look at it.
With you see certain things like foreclosures.
Liens judgments not a lot you can do about it.
What you can do is be prepared to explain it to the employer.
If you see other things like wild spending that needs to be brought down there are certain things you can do in your credit report to bring it down.
And change the way it looks.
Gotta be legal -- be accurate but you can.
And and you should.
But think of it this way their gonna see it.
You need to know what's on it it is very responsible for you wouldn't know what before they know it so you're in a position to either make it better.
Or explain it in a way that they'll understand it and they feel like you're being -- I understand I say you want to get ahead of it but at the same time you know it.
Stuff happens and also take a lot of time to get the stuff -- reports of that -- Probably good advice -- get on this now even if you're not -- job.
Get a copy clean it up so that you prepared -- -- for a mortgage and job anything.
Can you konduz so quickly about the difference between your actual report and your score because there and there are different you get -- report -- lists everything and then I have the score at the end of the day.
Write the score is based on really five elements it's based on your spending pattern.
The amount of credit that you actually use the length of your credit history the mix of your credit accounts and how many inquiries on your account.
Which when you go to get credit and they poll to determine whether or not they want to give you credit.
That's considered -- hard -- that's an inquiry employers are not allowed nor do they look at credit scores.
That's an urban myth.
They only look at your credit reports you don't have to worry about the score.
You just have to worry about how your credit report looks to an employer how you can best explain.
Can you say that again so they -- in theory your employer is not supposed to look at your score.
Just know they're there doesn't go line by line and make a judgment based on what they -- That is correct they do not in fact the reports they order.
-- the way they the relationships they have with the reporting agencies the reports they order don't even have a credit scores are up.
There are there are employment related credit reports that are different.
So they don't look at them they don't see them they're really not entitled to them they don't care about them.
What may what may make you interest -- to a lender doesn't necessarily make you interesting to an employer.
And that's what I was gonna say Simon I could have a 700 credit score but I still could have an employer that things on the bum because -- Stop at Macy's or some like that windows right it could be arbitrary.
-- -- -- the truth of the matter is that a lot of this is arbitrary but there are certain things that are you know clear red flags.
And and that's why if you want to put in the economic environment we're in right now there -- an awful lot of people that are giving serious consideration to what we call strategic defaults.
Which is where you just simply walk away from your house because is under water and then you start and that.
Yeah I know I know what you need to do now in addition to every other.
Piece of the valuation that you do you now have to add into the mix.
That if -- prospective employer sees a foreclosure on your credit report.
That is gonna make you much less attractive to them.
So if you -- evaluating and frankly I don't think you should evaluated but if you're evaluating strategic default.
You have to also think about the fact they can kill you in terms of getting a job.
Why aren't you just erase sunshine Adam -- -- yeah I tell idea I tell you I love the sun is shining in San Francisco because man.
You -- big big club black cloud over my day here.
I think I bonds.
I'm sorry it is sad you name it that's part of our human -- and -- its credit reports being part of an employment and I like -- yes I'm going away with that I think it's wrong not.
I agree with -- I agree with you except there may be certain job categories.
Where you're talking about somebody who's going to be involved in managing money.
Form or or making decisions relative to credit.
Or -- dealing with anything that's very sensitive in the financial area.
Where you may want in addition to a criminal background check which I think frankly is even more important a criminal background check -- you.
There may be some some interest in an -- and even the states that are banning the use of credit reports.
In the job evaluation process do acknowledge.
That there are some categories where it won't be banned because it really.
I don't know -- What I do know that love having you here Adam Levin credit dot com -- in San Francisco where the sun is shining even resent the dark clouds are way.
But in the greatest comeback.
I got Taylor is something I learned a lot of things there and -- that happens -- -- you re -- -- on the 39 point hasn't really moved.
Is -- because this -- -- the -- earlier.
Dollar down commodities.
In the food.
Commodities industries are getting killed we're into it -- budgets -- here we get back.
Talking to -- like she always does my girl you're back.
I'm not -- -- today this is essential to -- Michael Mike -- thinks.
FBI live Tracy -- Dow down 36 points hasn't really moved since we started this typically happens around lunchtime you -- overseas markets close -- around now those he could have activity.
Meg and -- and though we don't many of the traders are out there but other than excellence -- -- than Florida in your sex scenes looks at bowling -- right about now.
It's -- he's with us -- -- so we just talk and I had the other day the lesson she -- she had Blake how much 5000 nonpolitical and.
And then about 7000 let me -- sort and a thinking by the way out anybody that I announce a Google local yellow -- -- -- this pretty much free -- Seattle well it is good it's different though I mean the last -- -- remembered -- -- did the exact same thing but they're scaling it back this year so last year whenever you hit the airports anywhere in the airport and then on the plane.
You actually got free Wi-Fi that's not the case is here Google -- -- extending it to.
They go go Wi-Fi Internet service and any misuse on the airlines -- and it was really -- -- video handing out with.
Snacks and pillows so they go to an air act that -- -- -- -- sit down -- -- NN has been -- because you don't see that coming out in the past -- -- is now -- -- the little -- and doctor -- -- fighting -- -- added and a so yeah yeah.
You get one added a little -- at least through the holidays and it's free Wi-Fi it's gonna happen on that three airlines and to -- -- version.
An air -- and -- -- and Aronson of paying six or nine dollars to get your access to your Wi-Fi.
And get it for free courtesy of goodwill and they're not doing this -- of the goodness of their heart of -- And they go to Wi-Fi really hasn't gotten a lot of traction and so a lot of it is is driving consumer awareness and giving him an opportune needed tested -- And the holidays the -- a good time because everyone's in the skies traveling going here and there.
Making it a lot of people need to step in the airport delays stuff like that is there a time limit like -- just beyond it like for the twelve hours on delayed because that's that's my average -- -- -- -- only in the -- so as long as they're flat as long as your flight is that's how long habit.
Then that's what I said they're cutting it back from the airport because last year -- happened snowstorms there and giving people Wi-Fi friendly days.
When people are stuck in snowstorms -- -- sent -- -- It doesn't make sense to me like from -- marketing standpoint.
You should -- on your product when I'm stuck in the airport -- yes absolutely right -- as opposed to making me cough up more but that being saying you're standard Smartphone can get access to be -- basic things like email -- after you don't have to have a Wi-Fi access it's really for people who are really really really -- need to open -- -- laptop and get high -- staff.
That's something else that's that's not that's usually not and then the people who are will not accessibility stand -- race is Google grasping for straws here -- I mean is -- like.
Once you to use its Internet service when -- on the plane.
Percent of them are you getting on the plane is -- -- season in some fortunately Healy median Helton.
In and a I -- -- I just told me yesterday that meeting at seats together and we got middle seats in right behind one another and and east of the -- I recommend a little Tylenol for you and -- -- meantime is stiff drink at the same panel from being you know.
Nobody should be coherent kind of played you know one thing committed -- Tonight Jozy you're great thank you so -- That's -- not actually give free Wi-Fi.
I let's not we have some -- -- businesses and even trying to focus on that around here were gonna do more bit.
-- Thompson is here with us right now CEO of -- -- say that right that's right.
OK and we got apparatus in front of you right now explain to everyone first of -- what since he is.
Well since he is a safer better way to enjoy the fragrance in the scented -- she get rid of the Wiki here the so it light -- fire the flame safe for kids and pets.
And it worked for the libel.
Elaine angle he got a black -- a lightbulb -- the waxing and it releases the fragrance we have eighty different fragrances.
Lots of different Warner's.
-- -- do with the wax in the I had clean it out eventually I just melts out.
If I'm out right there when the fragrance is gone to dump it out and you have put in the bar so -- so why start this why do this.
You I do -- 2004 my wife and I were 700000 dollars in debt I suggested bankruptcy and she said no way.
God -- assistant.
So it's a real swing for the fence and swing really hard and so we were looking for a product that would can revitalize the business that we had we can I interrupt question -- She didn't want her name in the paper she didn't feel like she contributed to the problems I mean it was my business that was failing -- Because and I said this before I feel like today it's almost concept conversation says I went through bankruptcy almost like it's -- back in the day.
-- you well you head to head low even let anyone know you were gone through bankruptcy much like I'm sure your -- thought the time it was embarrassing.
Well and I'm grateful that she.
Had a swing for the fences that -- go bankrupt and because -- we we were looking for something that could be a home run and I was at home show in Salt Lake.
Bound to stay at home moms -- struggling to get their business off the ground.
And I saw a product that had potential.
And like I did with many products that -- home -- heard it can get wife Tess and -- like this -- Most of -- she did.
And it will highlight or more we had a pile of dead product and so we started working with with the ladies -- had -- -- and the asked this we wanna by the company so we in any money in their company -- just getting started that we made an arrangement that's worked out quite well.
-- bought this little bitty company at the time.
How do you take a weekly -- -- candle on the road and make it and because you that -- making money.
There were doing okay.
And -- considering great -- were her yet last year slant is an eight million and I that was last year this year we should come closest not be 400 million.
-- that's something.
So there's three keys to the success I think one it was a product in coming up with a product that.
You know took something that everybody loves -- scented candles and made -- safer alternative better price by.
But marrying a product to the proper distribution channels key -- we chose direct selling home party model.
And just like Tupperware Tupperware party yes -- parties via the so this is an experiential product.
And home party was the place where you could experience it and it also.
Is a place where variety became relevant in retail -- it's too small to really get the variety necessary to -- Customize what you want so let me just I guess is -- -- -- -- to -- can't really do that it's difficult to get you can't experience frank and there's its shelf space is too expensive to.
Have the same variety you can offer in home -- to how many different sense now.
It 86 and then we we bring back favorites.
From time to time with a favorite.
But the will discontinue about -- -- -- every season.
And -- sometimes it's just for seasonal reasons and sometimes it's because it's not very popular but those are extremely popular to somebody.
You know you -- do you know million plus customers everybody's gonna like something.
And so -- -- -- like something so.
We will bring back favorites will go online let them vote on which ones we bring back commodities -- these are warmer -- -- how many different -- us.
-- -- -- -- -- About fifty in our normal line but we also have collegiate warmer so good he is it like for -- yeah about over twenty different Italy -- -- -- We don't yet.
Exciting so here's what you gotta do now that he's got to let us know.
We -- the -- I was away the colors are I mean customers onetime Qaeda held -- -- the -- new colors one -- we're gonna be good.
Pink and purple or something.
OK so you got fifty different.
The farmers 86 different cents give or take nephew that come back -- -- -- you got over a million people use in this thing and it's all from.
-- parties yet so so is it the -- system look much like.
I host a party I get a discount -- -- the threat for like this all the other parties out there.
Well there's there's that a couple of key differences to the way we do things first.
We pay a commission to our consultants rather than let them take a discount -- front.
And what that allows them to do.
Is -- make real money so.
What normally happens if you get a discount when your friends and neighbors want to buy it you know I got this for fifty dollars -- get -- you for 65 give me a little bit.
If you charge retail upfront the 400 dollars.
And pay commission in the back then it becomes a real business it's not you know buying club where it's not a process where where people -- just in it too.
Consume the product break we want people actually making money actually selling product to people outside of particular organization -- Hank -- from -- We're doing our best -- fear.
You know like pink cadillacs the some very important part because notice.
I think you need a color you can't be pink -- one point cars made sense but I'd rather somebody make 500 bucks and pick their own car.
How -- I don't find out what about getting -- -- in this and selling this.
-- we have about 90000 active consultants.
And well in the United States there's a website and you can locate a consultant through our web site.
Can't order it online today don't wanna deal with a -- and if I don't wanna go -- can order no we don't sell any product affect except through our articles yet.
She got you can go online and buy it which up to my from a consultant that's fine that's his home run for the concise and because I go online all ideas -- -- -- is -- -- to make me -- As you -- -- to make you coffee but you know she's an interval part of that process.
She has her own website -- use that to market going to social media with it is it mostly women.
It's mostly women but there's quite a few men and they're they're coming on strong and what's interesting is there are husbands.
Who have lost jobs who are coming.
Into the business to support their wives and turning it into a couple career somehow helping helping her she started first -- did you feel this recession.
You know I think companies got to deal cards that they were dealt.
NN tough economy it's easy get space to -- and people to -- And when the economy's good -- -- disposable income so yeah I mean either way the business needs -- so when you're growing.
It's -- gotta you -- Communist North America and fine you know I was much overhead.
You got -- banks face well he is we -- to manufacture so we have manufacturing facility here we have to distribution centers one in Lexington Kentucky won in meridian Idaho so.
Transportation back and forth lot of logistics and product yet.
The legal -- -- I think I mean -- -- -- -- you felt it had a price point quickly before we -- Thirty dollars for the warmer.
-- the -- -- five dollars by -- stated dollar her by three save a dollar buy five get one free.
And the smaller whether there's three different sides of warmer as these are two of our size is 3045.
Makes nice like if I presume expecting how -- -- to be about half of -- sales in the fourth quarter.
-- good for you for doing this good variety burn off island look what happened.
This is -- story I like to hear famous only he's -- there that and it's it's sixty dot com if I want dot com become so it's SE ENTSY.
Dot com that's right.
Right you were going to be and -- -- -- do some makes demands -- season.
The Dow down 35 -- like I said didn't move -- is still a little reliance women in and they have not -- have a great day -- seamer.
Filter by section