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Happy Monday -- at -- -- I'm Tracy burned to death of about 69 points right now to reason.
US September home sales existing home sales were up 10%.
And I thought this is really good news keep in mind you every year we're still down 19% so.
This -- timber vs last September still down 19% but a 10% increase is nothing to sneeze at -- actually the market pretty happy about it because let's face it.
We need this housing market to be fixed in order for the economy to turn around.
Another reason equities -- up today dollars down our dollar got killed over the weekend the G-20 nothing happened that -- basically definitely countries come together they how -- try to figure out what they're gonna do.
And what did they decide I'm absolutely nothing except that they're probably in and of giving China more power which is startling to think.
Gold up dollar down equities when the dollar goes down and that's where we are now so pretty solid -- -- We got up about seventy points human -- there ever since.
Some other stuff and use up the -- though.
Believe you're not posted a profit this for a while nobody was buying pens and pencils but there's CEO resigned and the stuff like shots of the moon what's that say about the CEO I don't know.
And of course we -- the Irish government discussing their escalating budget -- kids yeah -- exploding in.
It's real and -- everybody's but -- in the recent care.
One thing that I cared about was I noticed that Honda actually is having a recall we haven't heard from -- that -- during this whole thing with Toyota.
With everything else -- been silent apparently now that we're calling.
Believe it or not about 470000.
Honda Odyssey -- From two -- by 2007 I actually drove one of those during.
Actually during those years those that exact -- also the Acura RL -- from together by two -- seven they said that there's possible concerns a break.
In the braking system so you have any those cars you know anyone who does find out.
Course we just heard last week to -- of equaling about 740 vehicles.
Most of them are overseas but it was that Avalon here in the United States that was really gonna hit us -- doesn't -- -- -- -- Avalon and some Lexus models overseas.
And have a Honda Odyssey which I know many -- good cars at these -- Go check it out.
Let's let the markets -- now could mean bad nobody knows what that is going on and at this point I think we're like eight days and counting to these elections and the markets are probably not gonna do a lot of a lot between them.
We do get a -- read on Friday next Friday a week from this right we get another big jobs report which is going to be telling.
With his right now though is -- -- president -- -- and wealth management on Sacramento thanks for being with us Kimberly.
Thank you Tracy went what are your thoughts on the state of the state right now this market is this kind of teetering not you know all one could argue on nothing.
I I I think the markets hearing as you say I'm -- and anything that's positive it will spike at that -- and they have that radio to stay neutral.
Yeah it's very difficult to determine where the market's gonna go worth a man at the end of the -- I tell my clients in fact it's a meandering stream.
We may -- apple live maybe -- that eliminates and -- -- at the end be in the end of the year just exactly where it is today.
So Harry and the what do you do with the money then I mean that's not comforting thing we hear from my -- that hit the markets meandering.
Well you know that they need as the great news isn't that we can make money at any time with the market so it really comes -- to my clients.
You know I tell them is don't be scared be prepared and had -- get prepared well it comes down to the allocation for their portfolio.
I'm if -- retired like my pre retirees and poster carries -- my women in transition and you know and they need to have that prison preservation a principle we -- have that stable encounter that paycheck kind of an every month and then we -- -- tax efficient basis so.
You know putting that -- the other short term bond fund.
To create -- Canon will hedge against inflation and give them that stable income as well -- -- I guess is there anything to do right now some of them it's not to say that the markets are stagnating.
I think -- this stagnating for a lot now I think we've been you know.
They say range bound.
For a very long time I'm not sure what it's gonna take to get us out what's it gonna take to get that three trillion dollars in investing in come back into this market.
Yeah I I I agree with you I think we are kind of stagnation play at stage.
And -- I think we get the fat -- closures under control.
And the ad job market it under control we need to see increased jobs -- -- people want to go to work Tracy -- at all wanna be able to.
Make a contribution to society.
And they wanted to up they don't wanna be handed that they say you know teach him at T give a man -- -- -- -- day.
He can have faced -- -- what they want to be tax effects OK that's number one number two if we got to stop this foreclosure.
In California it's unbelievable hair done and that we need to stop at Brooklyn and we stabilize that we get our jobs just aren't even -- that that's going.
I think that's when the comments that come back and you know there's that kind of money on the sidelines -- -- come back into the market.
Mom is though I think many business people argued that that.
Wade didn't people want to create jobs and the way -- a -- -- ministries who want to create jobs seems to be two very different methods.
And we're talking evidence really spending more money -- -- even after this election.
Many people are worried that during this lame duck session in the past -- could be a two million dollar omnibus spending.
What happens then.
-- -- And here's -- thing this tennis and didn't really work before.
And -- -- suspected that it was pulled that about 68% of Americans believe that the stimulus didn't work before.
So that didn't work before it do you really think that this isn't more spending and get that have no work this time it's got -- putting good money after bad so.
I think that the big thing is the government did what it supposed to do in that the TARP -- okay -- it reinforced the banks.
It gave that confidence back and they paid back -- defended its existing.
Get out away again need to get out a way of our -- that you thank I got an -- We're live from small businesses especially to get out the way -- -- let's talk about those some of the places where you're trying to find value for your clients and I know that -- fever high book to market or or even micro caps -- just kind of risky.
Well they -- But you know -- -- comes back down to the allocation of portfolio in my.
76 year old that clients prefer a we're not gonna have a 100% -- -- -- micro -- -- high but market.
But -- -- 3% might be appropriate for her portfolio.
So that high -- to market really is gonna add that pitted three percentage points above and beyond the small cap and large cap in the act and that Arenas if you really -- Trying caption that dimension the market he kind of over what I did was I over allocate -- that dimension.
So my -- get that kind of return.
What do you client saying you know are they nervous are they they feel like is elated and this somehow -- they just feel like we're in some of this.
I think people there -- there isn't there is definitely nervousness out there it -- cautious optimism right now.
But and you know they're they're not share -- the next she's gonna drop in January or after the election.
So we -- -- get that confidence back and once we get that confidence back I think money will flow back quickly.
But that means that you need to be allocated now in the market says that when that money -- -- back you're able to capture that as -- in the market.
But you know -- It's earning season right and we -- we're hearing yet believe there now weren't some darn good news from the companies that reporting.
-- BS and 500 companies that reported something like 80% would be estimates.
And something like 64%.
Be on top line growth to -- so that is worse Alan stuff again.
There's some kind of big -- happening out there and yet.
The consumers not -- at optimism at all.
Yeah I -- think we feel that I think part of that is you know people -- waiting for the elections to come through as well.
And you know -- -- space that some people are -- and out there and I think what we need to do is no exercise -- right about it sounds honest leadership.
In there and be able to then change some of these rules and navy.
Suspend attacks with -- being 08 continue with the tax bush kept her -- so that we can create that growth.
And the increase in yet get that uncertainty eight after the market because that's what's keeping us from -- has -- -- -- -- certainly right Kim quickly I know it on a lot of time where do you see this market by the end of the year than we have potentially -- -- -- what have worked ourselves through a lame duck congress.
How -- we end New Year's Eve.
You know that says that the date had been called but I think that we're gonna and hopefully I had.
The higher than we are -- -- -- -- game began this year.
But that in my -- it really doesn't matter because were properly allocated for them for their goals.
So that's the key is really how are you allocated.
Capture the market.
And then continued business is about long term -- this is not short term speculation fair enough but you can't I can't believe that your -- -- you're in a -- holds the position anymore I mean I got a great year here is revisiting almost daily.
Oh yeah it's my whole situation and it is it is -- in a properly allocated situation can answer it's an -- person's ability to take -- and stay in a market.
Right right and I got to believe that the -- -- risk has diminished so greatly over the years.
On my -- and and a real -- return on portfolios is napping.
That we've seen in the last fifteen years you know it's it's it's not going to be there as much in the next probably fifteen yes and that pitchers and in those of us that -- right through those boom days you.
You take you 2% these days and you like after Harry.
Wasn't like this that I keep.
-- -- -- the way here and did that that is constantly is -- visiting and reallocate and rebalancing your portfolio.
Capturing just hit a three percentage points all the time.
That's gonna build and present preserved -- -- and then dump that lofty -- yeah baby steps right.
Can block -- absolutely be with us thank you.
Good -- out there in San Francisco it is messed my former -- used to say that baseball was a game of inches right.
So I suppose that I have to think your portfolio these days he convinces Libby that -- -- that's that Kim is essentially saying right.
It baby steps live at ten can't be looking for like that 15% gain at least to have.
But we have to talk more about what's happening to our small businesses what's happening to businesses.
All this week on Fox Business -- we're talking about the war on business.
Basically -- -- parent it's scenes that policies put in place tax code tax will rates.
All our anti business and Shapiro's with a straight -- -- to prove that point.
-- down California right now out in west Los Angeles.
What's going on out there at -- at a cement company.
Now -- I have to tell you I know the difference between cement and concrete and I know you know why I know.
I don't know why you know other than how many people assortment of with the -- from here.
Asked -- something along those lines.
But I know the different -- the country and I would tell you -- isn't binder.
Congaree is the hard product and that after he had what are.
At the final product.
Cemented cement cement is an ingredient in concrete is the final product is like a -- grave grave mistake it it's like -- -- Lotta Waltz -- they when they call concrete cement.
Well I got -- Grammy say that it's tough -- gonna see me looking like a reject from the Village People at a cement factory but we are here.
-- for Atlanta and one of the reasons we're here used to be Catalina Pacific -- -- -- Portland today.
Is this is a facility they're there worldwide and they they know best -- How regulation and taxation.
Can have unintended and negative consequences on business and joining us discuss that.
Is the vice president of engineering for cal Portland Steve Regis and Steve we appreciate it -- -- businessmen that's wanted to ask you.
We talked about an hour ago about the regulatory environment.
And what people I think I always assumed that the people who work in the regulatory agencies have a knowledge of your business to the the businesses which they regulate.
Having come out of those businesses they used to be the case right but it's not the case now.
And that was the case so maybe a decade ago but nowadays very very few people in the agency have any industrial experience and and indeed there -- there almost they have an antipathy towards industry.
And that's important because they might have an educated background they might have a degree in engineering or industry.
But they don't have the real world experience and you're telling me that they almost have a negative.
Attitude towards your business.
Yeah I'm more than almost have a negative attitude they they really do they.
They really don't seem to want us there and and we have to go -- for so many different permits and every time it's a battle and.
We -- talking this facility -- -- if you wanted to replicate this facility between the federal and state had a different permit it permits you got to get their 67 different.
Regulatory agencies that you have to deal with -- why would you even attempted.
Well when we think that California is still going to grow and we would we would still attempted and slug our way through it.
That it would take a long time.
And yet you attended this in Arizona.
And it took you almost eleven years to do it by the time you finally got it up and running you -- your market was gone.
That's right it it took this -- -- years to try to permit a cement plant in outside of Tucson Arizona.
And unfortunately by the time we finally got the permit we were unable to do the construction.
Because of that the kinds of regulations and the tax policies at least in the California that you face are you losing business -- to foreign competitors.
Yes we compete in cement especially we compete in -- worldwide market we compete directly with China and Mexico.
And we're definitely feeling the effects of those imports now are you are you.
In your competition of them are you losing ground because they have such less expensive workforce or is it for other reasons.
Well it's really not the labor costs -- -- but energy and and especially -- -- regulatory that the capital investment required to build a plant.
On the currency exchange as a factor there's just there's just so many factors and they all favor the importance.
And they favor the -- let me ask you this -- -- about taxes just hearing California.
The corporate income tax in California's almost 9% it's higher than other states hey and people on the other side of this argument would say but there's so -- tax credits -- businesses get that it drops the overall effect of the tax code what would you say to those people.
That the tax the tax rate is very high there are some credits but they're very specialized and -- aimed -- favored industries that the the legislation picks winners and losers and and and heavy industry is is a loser that they bit.
And it's as a result it chases jobs out of -- -- they need this state has 2.2 million unemployed roughly an unemployment rate of twelve and a half percent.
You see that picture changing do you see the regulatory environment of the tax structure here changing to make California inviting for business.
Now we we wish we did but we don't that but -- -- taxes and are all the different fees those agencies to talk about each one of them has their own fee structure.
And so you're not only filing applications are spending time working with the the people who work for those agencies -- you're paying some pretty high fees to -- and.
And in fact where's the tax code has to be passed by the legislature here in California the fees come through the agency without any kind of they almost taxation without representation -- -- any real representation.
That's right and then those -- can be very.
And let's talk about those fees -- was an article over the weekend here which said look California's total tax burden on business is really no greater than.
What you wouldn't find in many other states but you pointed out that's not accurate.
Now it's not it if it really it.
And in part that article showed it showed -- total tax revenue coming down but of course the industry has been leaving the states of course tax revenues going to come down.
But the article completely ignored the impact of the fee structure and and much of what we pay the state is incorrect please.
And I'm gonna wrap it up -- throwback to Tracy but that was one thing to that happens as business -- the state is the tax -- and spending doesn't change gets shifted.
To the residents to the people who may not be in business but those those revenues still have to be maintained unless there's cuts and has been no cutting.
Eventually it will be transferred there but right now the states just running a huge deficit.
Steve Regis thank you for joining us the throwback to you Tracy but if you have any questions -- -- -- as Steve I've got a mirror right now.
I mean look he's got he went from 3000 employees to 600 he's.
Company gross two billion now makes -- fourth and that you almost wonder why why keep doing this if you're getting so much pushed back.
We'll just sell the thing and start overall I think you know -- it's just simulate the -- to this guy almost not worth it.
Well other companies don't they get Japanese firm actually -- -- -- percent of the shares of the company but the question was.
Is it really worth it to be in business and given all of the head when you guys face I mean you're the number of -- you had few years back is now drew drastically lower than what you staff.
Based on these -- issues.
That's a good question but.
We I actually love what we do it's a great company the people are great and we're we're really in it in it to win it so to speak but it's -- it's a tremendous company would provide a great product.
And you win it though if if the rules of the game stacked against him that they're certainly stacked against us and but we continue to to distract smarter way through.
Deep -- see anything -- on ask.
Now the back I mean you know -- there -- hasn't exactly David and Goliath it's almost like me they don't want him to win.
And god bless -- for saying I want it I'm in it to win it I love what I do.
We need more people like that out there play in the fight but it.
The stack the odds are set up against him and I find that just to be so disheartening Adam.
You know any you know it was really interesting to me in my discussions with Steve is this this.
You know we talk about mining regulation we talk about and regulation for that for this kind of industry.
And you would assume and sometimes and you assume you make you know the old adage -- I've got -- that I thought I -- -- you would assume you would assume that the regulators would be from the industry that they would have.
Hands on experience so that they could understand.
Yes -- textbook regulation with the application in the real world but what we're finding according to -- -- That's not the case anymore yet people who have very advanced degrees in engineering or in industry but they haven't actually had to apply what they've learned in the field and that creates.
It seems -- a similar story as -- Go south of the beltway but maybe that's just me and Shapiro thank you -- he's wonderful and got left over by in the fight.
I love you for being out there and you're damned good at art at -- Half.
Thank you very much not my normal environment but I presume they did it YMCA press any time now.
-- you don't want to -- me dad still duke.
-- and -- out in California it sounds stories that are just honest and true an unfortunate quite frankly because caddies patty say a lack of wind.
When unfortunately the government trying to just keep kicking it now on it's it's.
Disheartening -- known good word I can think of we take a break the -- up 55 points still we pulled back a little bit but again we did existing home sales numbers dollars down that's why equities are out.
-- -- The back at the and I countries -- -- your -- of about 55 points right now again we got good existing home sales numbers a 10% month over month keep in mind still down.
This September -- -- last September.
From this time last year I don't thing that's very good.
The market -- taken in London that it could markets is these were looking for anything springboard and that.
Apparently though that's not -- we'll have a lot dollars down -- when he meaning over the weekend twenty countries get together figure out what to do and they basically come out with a big old picture.
Maybe some cops.
And then they come.
Not -- -- -- so acts.
Group because you know we don't need any settled these days.
-- -- -- haven't businesses are being affected by what's going on -- in this whole war on business.
These states are late.
Catastrophic these days California.
I keep saying we should -- to stop -- -- and that way because I don't know how to solve it unless you bail it out.
Elizabeth McDonald might have a better answer for me because everyone in California now is setting the -- now she's -- -- -- center in New York City.
Talking about the -- fiscal collapse of our feet.
In -- you know -- -- I do I'm very -- put out a report recently saying that it's gonna take a it's -- trillion with a -- dollars to save our states.
Yeah I mean that Barkley is due to the pension.
-- -- pension shortfalls so.
Basically the states could be the next big systemic risk to the US economy and we're down here economist button would gathering.
That we've got a lot of Washington DC powerhouse is lava along with a lot of wall streeters here.
Listening in and what what happened today this -- that panel discussion for today Tracy won't happen if the state.
Collapsed and so.
The question we're asking here fox -- this is why -- they kind of having.
This panel now we know that only nine states that have a triple -- rating member at the rest through that double layer lower.
And so we know is he noted there's a trillion dollars in unfunded liabilities current government pension.
Up plans and we know tooth Tracy that -- federal government stimulus money.
Is set to run out by 2012.
In other words over 2009 and 2010.
About 30% to 40% of the budget shortfalls for the state was actually back filled by stimulus money.
So with about two and 91 billion dollar for -- for those two years.
But Tracy for fiscal 2012 we're still sitting massive shortfalls and -- of a 134 billion dollars.
So the question is.
What would happen if one of the states.
Really fell into dire straits and had a collapse would they have to revert to go so far as it would it would oppose -- constitutional crisis.
With the federal government have to say you US state are verdicts were territory.
With the US government if they have provide federal aid.
In the event of a collapse get to remove the governor of the state and much like they removed -- the government removed as CEO.
A General Motors and -- to answer a lot of these questions I'm really happy to get to you.
Janet technical issues one of the probably the top notch -- derivatives experts in the country.
Well known as structured finance circles well known on Wall Street well known in Washington she's -- a lot of top DC policy makers.
And she's gonna listen -- to the conference but she's here with us now to answer some of these questions -- Trace of it like to do with.
If you've got a question toss it to me don't give it to the -- but my first question is to Janet what do you think they're having this panel now on what would happen.
If this state collapse and -- what's going on -- -- here we've got former US treasury secretary Robert Rubin.
We have Laura Tyson with the top economic -- in the Clinton administration.
Job Josh Bolten also big DC policymakers they're all in -- here on a panel talking about.
Any real time.
How how they would advising US president that the state did collapse of Janet why the first question why have this panel -- -- think.
You know I don't know why they chose this particular timing other than we do have states that are in fiscal trouble I'm from one of them Illinois.
Found California spent a hot topic and what -- seeing now with the states has a lot of income analyst them.
Because they are -- -- cash even on the local level you see them cutting down and -- are not increasing the police force.
We've seen that in California as well where basically the citizens are told you know in -- you've got something like -- and break it in your home don't expect a response from police department.
You know -- some of these states also many of them actually by law have to have a balanced budget we haven't seen that really happened -- a lot of -- -- -- past that.
But Janet if you -- on a panel that had to advise the president.
A US present that a state collapsed there was a fiscal crisis nobody wanted by the State's unity bonds won't be the first thing -- tell that US president to do.
That's a good question.
I don't know that they're gonna let -- get to that level because.
First divide everything that's been done has been -- game changer and surprise throughout this financial crisis -- we've been bailing people out.
And if it's an individual state they need find ways to funny funnel money through the back door to that -- with QE2 or some other -- they have.
In doing that already right yes they have been doing that yet but isn't that constitutional problem and ensuring that US state that rumored to -- terror wondering any remove the governor like you're removed GM CEO one what did you think that should happen.
One would think is on the state level -- you going to be seeing is the face of course cutting back on some things they're gonna leave their unfunded pension liabilities are trying to do hail -- to try to get you know and some semblance of that.
In Illinois and our officials -- just simply been lying about the budget -- about the numbers that's the way they chose to go.
In California saw them doing things like scripts to some of their employees take.
But I don't think it's right exactly what went on -- on an island news mentions -- so in -- incidents several federal statesman on the -- can't fault.
Do we really think there's anybody in there and -- some municipalities municipalities well you know do -- does anything ever really think the state is on the verge of collapse.
I don't know what the people on that -- think because first -- why would you choose that particular panel.
Bob -- you want him advising the government on anything he was at Citigroup where he said he had no clue what was going on -- Citigroup was falling down behind -- -- He was on a panel with felons -- -- foods seem to kiss up to all of these CDOs by the way.
It's Carl Levin's report which will be the report to watch -- -- to -- And you know when we're elevenths report out of that deficit commission and you know it senator Levin senator Levin has had a report right he's gonna have a report on -- kind of fiscal crisis and that will buy -- -- Email accounts be a better place can -- And I think that that I -- ever being so honest but it should be told.
Where where isn't a new -- -- here what happens what happens to states like California and in Illinois.
And quite frankly my announcing new Jersey's close New York is close.
Unless you a lot of these states and throw them out to see we are bears -- and it almost seems like there's no option but to bail them out.
Yeah I think it's and it's rare is that official government resolved to really right size a lot of these states.
And it seems like you know the easy option has just bail them out and is that we ever had it.
Right truth yet.
Well if if the past is any indication they might be bailing out states which isn't a great idea is that.
It seems as if there have been a lot of things done.
That seemed to go beyond the authority of what you thought was actually parts extraordinary is no ordinary right exactly and the states -- taxing -- they're supposed to be looking to -- taxing power and try to rein in their budgets when.
When when the worst case scenario occurred if you -- -- how we've gotten to the situation.
We had the bond insurers ailing.
Andes where insurers to ensure the municipal bonds and the various states.
So the State's gotten very lax in their budgets because they said well we've got this bond insurance which -- its AAA fire and wind and the bond insurers fail because they bought a lot of phony products from Wall Street right.
They insured them for a fraction of what they should have been -- -- editor collapse and then they collapsed and by the way.
Citigroup was one of the banks that was okay pumping out funny securitizations.
-- Now that you've been terrific it's so good to have you on the show thank you send -- your -- Tracey that had a tough back to the ruining them.
-- be monitoring events and news breaking items throughout that day.
I'm gonna keep you posted on what's going on here but would gather -- kind of -- down here in New York City -- -- you -- and -- is terrific I mean.
Like I said she was being blunt and honest and you gotta love that.
She is the straight -- -- yeah.
And now -- a little club.
Okay I'm -- downtown including -- senator at the button would conference.
Economist magazine houses every year they get a panel people together to solve the world problems and as.
-- is guest pointed out Janet top comically.
-- -- that panel was properly chosen but those reports.
We got about the rich -- now because we're still talking about this whole war on business in the unions.
Mineola argue a part of the reason we're in this position in the first place.
Ray reached between the pensions -- we pay these guys one could argue the auto industry came crashing down because of the unions and mean.
Many analysts say unions hit a six -- -- Tuesday.
And even if you look at whether the unions have won or lost during the Obama administration that's a question that we decided to take a look into trees you over the past two years.
Have unions done well or have they -- cheap considering they do donate to Democrats are big supporters of the Obama administration -- look at what the headline.
I -- -- the unions were pushing it was the employee free choice act card check makes it very easy or much easier.
For unions to organize in the workplace that's still languishing.
In congress and when you consider what's going to happen on Tuesday there will likely be fewer Democrats in the house and the senate therefore.
There's probably much less of a chance that this proposal actually makes it through congress so.
The Obama administration will likely go through without having passed the employee free choice at least in its first term.
Where there's a second term and have a possibility but when you look at some of the other things that have happened over the last couple of years -- you mentioned.
Chrysler -- yet.
-- Chrysler and GM were bailed out by the Obama administration saved thousands of union jobs and on top of that.
Unions were given a significant ownership stake in both companies so in that case you can look at and say -- did pretty well in the stimulus plan.
Millions of dollars billions of dollars went to help.
Keep union teacher jobs and other private or public sector union employee jobs.
Much of the stimulus plan -- keep teachers in the classroom in and a lot of other union workers.
When they really didn't have to give back anything as far as pensions -- benefits they just went.
To keep those folks on the payroll as is there is the I TC tires decision with the Obama administration.
But at 35% tariff on Chinese tires that was the -- -- or certainly help the union decision.
And when you look at the National Labor Relations Board Craig Becker who has done a lot of work for the SE I U and the AFL CIO.
He has been nominated is on the board of the national labor relations for the NLRB does a lot -- -- Employee -- union disputes and so having him.
Is on the NLRB is certainly.
A a big voice for unions on a very high profile.
Board federal government -- here in in DC -- in the United States -- You know it's you can see what ever in -- about the mean -- it.
When no one is of -- -- of these unions anymore.
You know created for very specific purpose but things could change times have changed he got to -- the answer to all this is just.
-- A -- -- it's a it's a good question it's.
Actually would you consider what's happened to the American workforce over you so much of our manufacturing work is gone overseas unions don't -- up.
Anywhere near the percentage of filed work I Americans as they did it in years past -- unions will argue that.
You know they're there to fight for their constituent you look at the teacher's union they've certainly done a good job.
For teachers you look at other unions unions have done a fantastic job looking out for the rights of their workers and making sure they're workers get a pretty good deal however.
Some of the other consequences of it when you have a special public sector union employees.
You know those are taxpayers paying that money and so you know it gets into this really sticky argument whether it's good for the nation.
To have labor user or whether labor unions are actually.
Hurting public coffers it and it's it's something that's got to play out in this election and will continue to play out and elections after this.
You know -- rich and you you're dead on because.
Part of the -- my guess is that the unions are big political backers -- They have pocket books that are.
Fairly deep even -- of their participation as -- as you pointed out we still have money to give to these campaigns I guess is as long as we continue to -- solid.
A solid voice around the candidate -- go anywhere.
-- they're big spenders you know they're one of the many big spenders one of the many big special interest we hear so much about special interest and a lot of it of course is -- different.
-- sectors of business.
DC as do labor unions and you're seeing on an ad spending in this election cycle as well.
But -- your great unions -- -- -- Okay thanks Casey from the jury's still out on CNN -- right -- -- elections are going to be used out presents in down in DC.
Although he's originally from -- Alleviate that threat that's as right.
We love -- love.
I and you know we got up about some good stuff now because people out there are out there are making money it.
Are -- doing good things are live -- living the dream actually I think Michael -- living the dream he's director here with us on set.
I mean I guess right now best known for her American idiot.
Must be thrilled this is of course the show based on -- green -- album which is so great but there's a litany of things you've done many of which I've seen.
She doesn't do you get a Tony nomination for direction of the -- modern Millie but they -- ended up winning for that right.
Won best musical for that I -- view from the bridge -- Anthony.
Look -- and Brittany Murphy you also won for that.
You can win.
But you keep winning and what did you think he's you started -- as an actor yeah what made you say you know item I'm not so good on states and.
-- behind him think -- was pretty bad ugly iron now was not a good actor I wasn't and you knew it.
You know after while you sort of pick up on that when you don't get hybrid.
That bill is pretty clear yet need to kind of -- now that they were so pathetic.
Exactly -- I match but I do.
OK so you're you're behind the scenes and I say I'm going to be -- and that's right and then well -- I was very lucky and I had some very good breaks directed at a very early production.
Angels in America part to mean at NYU and that led to the national tour.
Of angels in America and that I think that really put me.
On the map and started you know -- developing different kinds of projects and they do they worked -- -- -- you -- you have.
If it -- saying I wanna do this project I wanna direct the spread what do people say I have this fabulous project and we want you with a little.
Bit of both really.
-- came to me through my dear friend Dick Scanlon who wrote it.
And spring awakening came to me just the right airplane you have while -- with the -- came to me American idiot was my idea.
It was -- because you started out a small states we started out in Berkeley right.
In Berkeley an elephant restaurant right exactly and before the show even open and they knew is he being hit extended via the performances and then what they said you know what we just got to take with -- we got to go big with it yeah you know what happened was you know.
You have this feeling sometimes when you do a show.
And it starts to sell really well and the audience responds in this giant -- you've expanded your extend.
And you get the feeling make -- what this actually could.
Sustain a big run in a big Broadway theater and it most certainly has amassing -- sentencing yet but you know like I now I have to get there there.
-- what's changed over the years because.
Used to be going to the theater was you know we got all dressed up we went it was like this big events -- -- team.
And a little into the theater and then there doesn't -- -- -- went right and so what's changed or people coming back did you feel that recession or what is America.
It's American -- -- the kind of show that.
-- -- -- It's not necessarily recession proof what what's different about American idiot is that it isn't just your typical theater Goer who's coming we get -- Green Day fans in there.
We get music fans that we get a lot of young people so suddenly the demographic.
Has shifted a little and I think.
One of the things is that the tipping point for what theater goers.
Traditionally -- has changed they're more people who grew up with rock music now than ever before right.
So suddenly you're seeing shows like.
Like American idiot -- and like spring awakening.
Where the music that's in the show is the kind of music that the kids are listening to -- radio.
Rock of ages -- -- is definitely here last week he said the same thing.
In he used to be I'm.
To say you're going to musical and I was like family after -- name and I can't listen to that everything I mean I could I kind of that.
That they need it shows like systems -- -- concert that is the break and much like that yet because there's a live band onstage and that's the best part about it I think.
-- very it's very vibrant that way.
Response and it in in a way that's a little bit different from your typical Broadway audience what made you want to do this you know I listen to the record a lot and I loved it.
And I started to love it in the same way that I used to love listening to a chorus line in the or West Side Story when I was a kid you know -- you listen records.
And you did -- show tunes yes.
This started to sound like spoken like a really good -- -- and.
Is it because it was said really written because for instance I remember seeing Tommy -- not realizing that.
That's pinball wizard out that whole album census does this -- story right rate and -- it was almost like chapters in the story who is it is it almost the same.
It is very much the same way I started to hear the story and it right it's it's one small -- not small story but -- some of the story of one person on the record.
And it's just Billie Joseph Armstrong -- singing that.
But I started to imagine what would -- be like if you took that one story and made multiple stories out of that.
That's me that's it it boggles my mind because it's against his icy -- one -- -- some days like well there's people around actually have to talk to them.
And then yet you can see beyond -- put music to it.
Since so what's different now though I mean.
-- the fact that I'm demanding more out of you that person in the audience things have to be different technology and you name it must be different to produce a show these.
It's very different it's more expensive.
First of all everything's gone up.
And and so it's suddenly.
A show with nineteen people in that.
Costs a lot more to run -- -- -- well there's.
The rent of the theater has gone up.
That the pay scale has gone up but you know the cost of -- has -- -- But you can't raise the ticket prices too much where you start to really price it out.
Of the realm of -- you know at at -- if it keeps going this way we're going to be we're gonna end up doing a one big Broadway Show for one.
We're really rich person for one night and not -- yet.
Had imagined dropped ticket prices and all we have you have got definitely during on the September which is notoriously very.
A difficult month even shows that a sellout.
Consistently like -- You can use other box office receipts go down there in September so at that point you do you -- a lot of shows doing special offers its -- -- I guess as a consumer -- -- attend September's at that time January and February are generally good to for the same reason.
I really haven't thought you had a holiday it will add everything up to you like the week after New Year's and then it tends to fall off into -- again until about valentines isn't it starts to pick up again.
Because I would I got to believe you'll see some sort of pick up between now and the end of the -- yes right the holidays you'd stereo if it starts ramping up for us in Australia.
-- it and locals or tourists -- boat is it mostly tourists I have to say.
Because what happens is like in the summer all the kids are in town and they all come -- when school starts again that's when you see it's -- starts to drop off.
But then as the holidays come in the long weekends and get a lot of use an influx of tourists come into the city.
And that's one of the shows they really -- so what's it take any you use it to anything I wanna do this you know they'll find money.
Right -- mean it's almost like.
Mean you know.
Charity and knocking on the door -- a little saying he got as the enemy it can be I was really look at two very good producers Tom Holtz.
Who was in the the great actor and -- wonderful producer and I were middlemen and they were both the lead producers on spring awakening so I brought them in early.
To this process and in fact Tom is the one who got me.
To have the meeting with Billie Joseph Armstrong in the first place.
So I have that I had some great support supposedly being at the start up business and you go -- -- capitalists and you just keep things -- -- what that's exactly however show its re never now it's almost every shows its own little business and the thing that's shifting him way to look at it right.
Tell us about American song look at I know that's why you're here.
Yeah there's -- wonderful program called.
On the American songbook project.
And what they do is they promote.
The the sort of legacy of the great.
Great American songs.
In the the schools in the Tri-State area Broadway.
-- -- on its Broadway songs but it it transcends that I think that go with it it's all about the history of songwriting.
So you've got Gershwin and Cole Porter Irving Berlin and -- and -- hand and did the great songwriters that and it's that'll.
And and then we're goes all the way up into popular songs -- for someone like me.
Like I see the trajectory from Irving Berlin to Billie Joseph Armstrong.
And as much as it's very cool to see all of the the young people who are really into rock come to see a Broadway Show yet.
By the same token it's very cool to bring.
The great classic American songs into the schools because you there really is a history there and a legacy -- to curriculum.
Yup that's very -- I -- -- for a team that's when I was in grams yep I said I saw that production when I was in high school that that 1977.
-- rank that in Houston grand opera in my mind blowing to -- Move and let him spend a piece of the having events yeah that Saturday November 6 seventh through eleven -- at the Edison ballroom and now -- -- to come dressed as your favorite song yet.
Yes if it's really fun I think the idea is that you you know you put on a costume and it's close enough to Halloween I think says sort of makes sense and if extending the -- like constant thing a little bit longer.
And so you dress up and it's -- kind of like name you try to guess what's on.
Somebody is draft.
It's kind of -- if it's kind of a.
I have to think yeah what would you do something finally -- I think that I have seen him like.
A billion time right within two billion -- lately I dreamed a dream team thing maybe.
How would you do that and that's okay we're happy.
That Reagan think about it I but -- -- we have -- events November 67 to eleven it's American samba project.
At the Edison ballroom anyone could go -- wouldn't yeah.
Online there's a website yet American song book project or right that's right yeah.
Check it out and everyone has to go see American idiot myself included yes I -- -- that in there get there but go go get out there and -- support the arts.
Michael Mann thanks so much using him pleasure thank wild wild ride you've been on -- -- -- the Dow -- -- 49 points right now we'll be right.
It's good that it's.
Welcome back at BMI I'm taking -- together at fifty points.
We got existing home sales earlier that's kind of what we're right -- right now.
I didn't tell you this website swap -- -- dot com blows my mind because -- -- believe that people actually do this which is why.
And so -- that's got us here with us right now executive vice president of operations of swap -- -- I heard about this awhile ago I actually had a -- a friend that did it.
Any slot -- -- -- in like a really hot car because.
He was at a time where people couldn't afford to pay their -- -- -- Yes Tracy thank you for having me today so -- -- works.
Essentially saw police dot com is a marketplace where people can come to get out of an automotive lease or take over an automotive lease.
I have let's just say I got then.
I Lamborghini or Chicago during a day because it was -- and I could afford it -- -- least bit and you being released the -- that this is a hypothetical.
And now I can't afford anymore so I put it on swap believes dot com -- -- -- -- that.
Well you'd come to our web site which of course is open 24 hours a day and go through a short processed.
To list the major details about the labor -- -- Basically a little bit of contact information for yourself information about the vehicle and of course the highlights of the the at least as well.
Once you get -- and saw police which is a very easy process and can be damages -- -- within just a few minutes.
We would have thousands of viewers coming to our site every day looking for -- is the takeover it would be our goal -- police dot com.
To find somebody interested in taking over the remaining terms of that -- police.
Let's talk about this all I do all the person does is pick up the payments rate they don't have to do any of the upfront -- that I had to pay they just pick up the payments of vice corner real good monthly payment.
The person on the other and went.
That's absolutely correct and we have a normal start up fees right okay so what happens now with title and insurance.
-- -- title you know get I don't what -- -- an insurance.
Well you're correct you don't get a title at least put all the paperwork would actually be handled by the leasing company itself who holds the -- on the Lamborghini.
Is our goal -- -- -- -- again to match -- the person who wants out with the person who once in and make sure that both parties go through the proper procedures.
That it -- set forth by the leasing company to make it a proper lease transfer.
So losing tummies -- cool things that you're handing off -- -- if I don't break up my least now I get totally penalized.
The vast majority of leasing companies actually have a process in place to do at least transfer in one of the main.
Things -- sloppily -- -- the tables helping find people are interested in taking those lease terms off your hands.
An image guided him -- I come into the say he with a can't -- releases anymore and that basically.
Felt they were gonna have a lot of load of cash going forward and now they don't.
-- that's definitely a good chunk of the people that we see presently have listed their leases was sloppily -- com.
That motivation is change from several years ago before the economy was who was moving southward.
And back at that point it was a lot of people wanting to look just simply look for a different car had the desire to get into a new vehicle.
It's definitely much more need based more specifically financially he -- just noted.
Yet that look at that -- at least I'm sick my flat to three years I couldn't possibly think about owning -- and and a clock -- require girls to an extent but based on the cars -- drive.
When our economy -- definitely ringing with so about it I am a Fella here.
I get a bunch of cars in my lap I wanna get them out there can I bring them here so late in hopes that you'll find some of the -- them.
Actually we do have some programs for dealerships as well and we permit them to lose their leases on our site.
And really sloppily since positioned itself.
As the world's largest automotive lease marketplace what do you wanna take over release or originate only southern new vehicle we can help -- We did target audiences -- mostly like young kids are you -- like.
All age groups come to the table.
We see all age groups come to the table there's definitely some more specific demographics in terms of leasing.
Those individuals and understand the benefits of automotive -- is short term nature.
Lower cash flows always having a vehicle under warranty to name just a few.
Yeah I can imagine so and -- that leads me to my next question.
There's got to be a -- games out there had to wait no I mean you could tell me your -- -- scene and I get its eleventh.
Well we actually have several.
Safety measures that we put in place -- swap police that com.
I'm number one we have a vehicle inspection company that we can have any.
Email report of a particular vehicle within two to three business days anywhere in the United States.
Additionally so longs you stay within the policies and procedures.
As set forth by your leasing company.
Everything should go very smoothly.
OK so tell me this.
Approximately how many people do you get to the site daily.
Approximate 101000 people -- Now I think and coming lease transactions than you do.
I don't I check that per month per year basis.
How were on track to do in the neighborhood just seven to 7500.
Lease transfers this year.
You know -- you you are serving a purpose right here helping someone who can afford that little Mercedes -- anymore and get out and move on without.
What's the plan -- going forward is it just to continue to expand.
Swap -- -- and get people nothing more to the site.
I actually collaborate on your last point OPEC and essentially -- we actually creating win win situation not only are we helping out individual getting out of that Mercedes that you noted in your hypothetical situation but we're also helping the person on the other side of the equation.
Get into a lease was very little up front.
Money and -- shorter commitment something that they cannot duplicate necessarily at a dealership level so we we believe it to be a win win proposition.
Now in terms of what that person may do next you've got out of their Mercedes that's really after them would like to see them back as a buyer on the other side of the equation -- -- -- com.
And of course the short term nature from them on the -- side of the cycle.
Means that we do you see a lot of repeat business.
That I -- I -- let you go -- you first conceptualize this idea or maybe it was that you per say but the idea was conceptualize in 1997.
That's a -- that's it's really long time ago.
Actually I am not.
When he conceptualize swap police.
Our firms actually owned -- the same ownership as a large automotive group of Cincinnati Ohio.
And the idea was actually conceived on the showroom floor as a result of people coming in to.
The -- -- groups dealerships and being stuck in leases which basically kept them from buying new cars that day.
-- isn't that interesting -- is need based.
You write now walking into the ocean tomorrow -- -- that I was and we drive and that is that what I'm driving and when I'm stuck for another two years.
That's absolutely -- that idea -- police was born.
So what next just continue to get the word out there are there any -- have bigger plans for swap -- We actually have that broken down our strategy three fold -- -- number one we want to.
Continue to grow our staff in an effort to not only help that clients that we presently have -- help the clients of regaining every day.
We're we always -- evaluating and testing different marketing strategies to get the word out there.
As efficiently as possible and thirdly we want to work even closer with the different leasing companies in order to make the process better for -- -- our clients as well.
-- that's good -- I appreciate you being with us and -- this story is like I said to say intrigued me I didn't I don't just anything and so I was nervous about the whole thing.
I think it's pretty darn cool -- all executive vice president of operations at swap -- dot com.
Check it out YouTube can drive a two seater Mercedes.
Thanks Scott thank you Tracy.
Have employed you boys are now again we -- existing home sales up 10% month up from in September.
Since October August excuse me that's better than not than I suppose don't forget still down 19% Europe -- year I don't think that's much better.
Which we know the government is investigating foreclosure process that will probably drag on for a little bit.
Eight days away from the big election will be keeping you covered here state -- -- Fox Business though we're going to be covering this whole foreclosure mess and the markets for the rest of the day.
I'm done see them.
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