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-- -- -- and live I'm Tracy Byrnes in Gaza that eighteen points consider restarting the day up with a report from ADP that jobs actually.
Dipped in September we -- 39000.
Lower than they expected that's not good.
Keep in mind eighty ADP's jobs report are awful payroll checks right -- ADP check.
Comes from the ADP payroll system that they have it's mostly small and medium size companies.
Your big large companies that we're gonna hear from on Friday generally don't use GDP to process their payroll checks so.
They're not really included in this so this is more of a sign of what happened to our small and midsize companies and clearly.
Now -- -- a -- happened they weren't iron like they were supposed to be so so much for all that fantastic government intervention half.
Believe it back.
Costs -- on the other -- fourth quarter net profit up 16%.
-- -- Japanese big bucks -- -- Realtors.
Retailers these days or read reach them now on the move on.
Fourth quarter earnings up net sales and membership fees outweigh believe -- -- higher costs cost good great yes spinach and it seems -- say -- all the time.
I don't think it's for the that they get harmed by any shot you can go in a cost on to spend like twenty bucks on a bag of chips in debt.
You got invited to gun -- bag and a big jars in jars in jars in the -- and -- He's really did you -- exposed deceiving at the end of the day but that lets you got to be prepared to spend.
Fitch cut Ireland's debt rating I know you law upset wondering what are they gonna do.
Talk about behind me belong that's to -- And finally we got CD thing it's gonna sell one point six billion in meets our retail card assets -- This is -- -- -- back and forth and back and we're not making -- better for anybody suggest denying you credit card bill the end of the day.
We're -- more about the markets they're not doing a lot at least there that's something.
But we gotta talk about.
The economy and what we're doing and how it.
We are affected by in our companies are being affected by and so thrilled.
They Kim Schaefer CEO of great wolf lodge is here with us now for a ton of reasons because present -- she was the first female CEO to be on undercover boss.
Fabulous show but second.
Great wolf lodge resorts I think is it like a big piece of Americana.
I know you were just some -- digging down comics scene.
-- you're in the heartland of America.
And yet you're.
So we we think it is is it because I can drive you and I don't have to get on the plane and I can come for one night and have a fantastic time and go home.
I think that has allowed to do -- that we are all about the ramifications and it's always ban that if you can provide -- -- that's convenient and it's quality.
And real close to their home.
It really is about not giving up that family vacation but maybe find an alternative than -- as expansive as sitting on a -- going someplace for a week.
What's it like I mean -- Years.
There's so much going.
Full disclosure my kids and -- -- -- floods for 34 years now we've probably go to two sometimes three times a year.
Because of that reason I can put -- in the car were there in an hour.
We have -- 24 hours.
And we come home right.
And as I mentioned they dubbed it better than Disney World because it's just less exhausting for them to their's no plane -- snow hole total you know -- one night.
Is that is that I think we you seen -- change in that that people are saying you know what this is better.
I think everybody is looking for.
What can we do as a family we don't have a lot of time parents don't want take time off of of war and they may not have the the money.
So for us.
The it is all about providing them with -- amazing experience you get two days of play for one night day you just can't -- that.
No you cannot -- you expanding.
There's no magic quest.
-- creative kingdoms develops magic Chris -- -- creative kingdoms.
We -- a majority interest in income in our creative kingdoms.
Companies really a lot of opportunity in that of themselves with their patents and what they can do from a technology -- they're all about play.
And so for us we've had them in our resorts over the last four years and it's definitely our number one amenity outside of the water park.
Couldn't really give you something to do when you -- dry off and you know take a break from that you can just wander around -- -- play this game and it's it's really engaging.
Buffett an online version so when you leave the lodging still go home and experiences that at home as well -- now.
He's so and so for people -- so -- understand you get a -- in the kids basically -- around in their wizards and they have to solve all these go on these -- and slay dragons and it's the greatest thing in your right they're just walking around the hotel.
The miners still young but I guess says they get bigger you can kind of let him go outside to a little bit of a break for the parents as well it's very nice that -- they can -- and a lot of that I have a drink they can just relax and the older kids can definitely go out because.
It's all contained.
-- within that the core base before the -- so this in my experience that it seems to heal well.
-- legal right you know you go you play the restaurants everything's just all I find very coordinate -- story time.
So why -- did you decide to do a show like undercover boss.
I think that you might want to make your company better I've been around for fourteen years -- and the CEO for the last two years.
And you oil is wanna look to say is -- -- we should be doing that we're not is -- way to maker company better I think anytime you think it's as good as they get.
Think that's when you know you run into problems so for me it's all about how -- -- become even -- Than we were and spending time with the employees were interacting with the gas that was just a double bonus.
And you did some you did all of it.
The guest services which god blessed because I get out alive and I hear people like I could never do that is actually make you check in the end did that he -- the restaurant even -- to -- -- dead.
And it's higher -- -- of the time I was.
Waitress in college -- that was the one job that I thought for sure that I would just separated right into.
And you just forget that your on your feet.
You know you're always kind of on stage if you will because you're always put on that smile and -- in the -- well really I was so pleased and and pleasantly surprised with.
Is that they were going to be -- -- -- -- -- and -- -- to personalize the experience for the gap.
You know they were trying to get into the -- pact of let's make it real quick if they were there and say -- were -- for a break we've been in the water park.
It was more of this conversation and and and relax.
Atmosphere around them.
In the same thing in the water park whatever that -- needed.
You know it was all personalized to them so I was just I was so pleased that these these young players are taken it upon themselves to -- that -- It's been seeing you say that could that's something that I noticed these are young kids many of them in college or even if you know could be younger I suppose right right and they were all sweet and very helpful and very good even to -- little -- and -- OK so would you take out of this who was -- stuff that you said hey we got to fix this well.
Front desk was obviously one of those issues it wasn't necessarily a big surprise when everybody shows up at the same time and you get even a hundred of those rounds check in at the same time.
You're gonna have a bottleneck.
But the process.
We've -- all these cool things to do it and it doesn't really need electronic wrist band so that you can use it to charge to -- Roman.
But it takes time to get everybody what they need in the family.
And give it all set out so we doesn't have to work that we have to do on the front desk checked -- But I think that what I took away is seen over the last couple years have been very focused on the gas and -- their reaction to the economy and how might be affecting them.
It's time to look at what we can do to engage our employees.
We want to be efficiently wanna be effective and maybe wanna do things a little bit better than we think that we're doing them now.
Let's talk to be employed and let's have that open dialogue with them that was I had my biggest take -- -- really progressive way to look at attended there are some.
Companies in the forefront that are doing that if employees happy basically the customer's right right OK see you have your thirteenth park opening.
We have twelve open and we announced that we're going to do on new project in Garden Grove, California.
-- about mile and a half from from Disneyland this brave right is it is it is afraid it is a growing sector.
In that area in general is is growing and Disney's been huge expansion there so we believe it's a really nice opportunity to reach those folks in the California market.
And the international market that are coming in for a visit to experience a great -- So I guess in a way you benefit from the people that come to Disney absolute -- it spillover that that's right.
Athlete you look at what the -- to the area whether it's Williamsburg Virginia.
You look at you know a Mason Ohio -- are there.
Already kind of coming to those locations but we want to be able to bring them back for that second and third visit so we may come in the summer to go the amusement park.
We can come back in the winter as well.
Because if it's a well -- destination path.
Yes and so that's an easy drive.
A new name for us coming and New York City or anyone who is New York City area the Poconos it's just perfect that's right it's an out maybe an hour and twenty from here now from -- home.
I'm telling you I'm I'm I'm your advertising campaign -- -- let me over there is a building that has tons of two great wolf we -- -- then I'm okay so what happens next do we keep expanding.
We we do keep expanding -- really focus on license -- management model because we're really the only ones who are focused on this type indoor water park entertainment concept.
And -- process time to leverage that expertise and have other owners.
Get into the grey wolf family and so it's really more now about going out and being you know sales company and -- really helping people.
-- -- -- Their own great wolf lodge and then we'll manage and licensed all of our systems.
Interesting seeing -- do you still though have visit all twelve properties.
Out of my possession at its heart it it it is hard it's not my main job anymore but really it is such an inspiration to go to the properties.
And spend time with and it reminds you why we do we do for our guests every single day so.
That's definitely my -- gimme my New Year's resolution is to get out a little bit morning -- get analysts much.
I love the water yes revenue slide that three of our lives does including the pocono.
Double barrel -- my understanding of the fans have high.
Heard that the last time we were there they had just opened it and they.
-- running for 24 hours to make the -- -- -- world record death to the daily and we did Davy got there should say they set it down so Agassi could.
Breast al-Qaeda particularly to David -- come -- anybody -- -- -- need to break after that.
Split so let's cute -- simply acts this delightful idea that these kids the little girls get -- and -- in the ice in the same time.
-- kids -- actually an inspiration for my daughter.
When she was thirteen 1230 love go to -- but I don't want her to be -- an environment our had to be quiet and -- rain.
But in this on environments so we have -- and in all of the great -- just.
It's been a huge hit a great amenity.
And we just open our first one up at the Mall of America in Minneapolis.
To kind of bring man as a new add on amenity outside of the lives -- there's no water park attached to -- on no water park attached that one is strictly -- you know kids come and they did.
They get pampered -- a -- it's really a celebration for her birthday is for good grades where you know just just doing something wonderful.
And you know the biggest surprises them.
Love to take -- granddaughter and -- such a nice opportunity for them -- spend time and do something together.
I believe that while the first time I didn't took my kids in the great what did great wolf I had to drag my mother their grandmother.
Because we were separated we had to split up -- what little -- a little.
They -- my mom came the whole thing so it is it's fun for all I can attest to that can -- CEO of great allowed -- -- -- thank you so much for being with us -- -- Great great great job on undercover boss -- good for you for doing it had a lot of fun yeah and it just says a lot about.
How much care about the company love -- think it's great way to take a break I'm telling you.
Take a family we.
Didn't what you will -- to bond out of order slightly beating seeded Blake -- -- -- black that your on the two big.
Your little -- money your -- and see things getting down.
Since nothing like whether it.
Welcome back at the end -- I'm Tracy -- I -- around the -- enforcement.
We're slightly the Beagle is concerned.
-- and a can't could you got doubt it's twenty points and agreed to start it sure does look like degree -- John's little but.
Let's say it really could've been in the red -- accept a little bit about what the market thinks this ADP report.
If he comes out and says.
Less tiring than we thought 39000 us as a matter of fact so pleases me it means are small and mid size companies on hiring like we were hoping they would if not a great -- The other angle though here is that the ADP report is generally way off the government report that comes out on Friday nights for that exact reason that eighty.
The government report is much more large companies includes government jobs as well so we're looking at different spectrum but nevertheless.
People like this.
It would be much better for eighty.
As -- mentioned earlier we had Costco fourth quarter net profit of 16%.
They said net sales and membership dues all up people still doing and people still -- big box because in the end of the day you do see it.
Yeah about 52 wells to a -- house -- to save money in this 52 roles.
And so that being said we take are 1819 points and we're very happy about it.
We got up now about how we decide this continue will.
Waste of money coming out of our government and this many would say is the most egregious example of mall.
Did series here at taxpayer tax practitioner.
With us here before new friend -- fox.
-- a piece of the White House is putting solar panels.
On the White House that's correct I've -- now.
This is not the first time this has happened Jimmy Carter did this in nineteen -- nine he put 32 solar panels on.
Ron Reagan for some reason have -- -- nevertheless why are people making such a big deal out of this.
Well it's a statements about the greening of America unfortunately.
Is very expensive to actually deal.
It's not so much these solar panels that will be -- -- for the White House it's the procurement process in other words the method that the White House will go about.
Having the individuals make their bids -- the ultimate installation.
It is they have labyrinth of bureaucracy where applications.
Will be submitted -- that will be reviewed by bureaucrats and bounce back and sent up in other words they are going to.
Spend taxpayer dollars as fast as the treasury can print it.
And that's the issue also these solar -- that's correct it should be just let somebody donate them to the White House rather than charging the taxpayer.
Potentially a million dollars 42500.
I don't but then that causes the fine line -- you donate them you giving the White House something are you expecting something in return had you picked the company that donates them.
I mean that's just -- sticky is -- -- Though that may very well -- but nevertheless we need financial accountability.
From the white house on down now's not the time to continue to waste taxpayer dollars even under the guise of greening America.
Well only on the that the guise of greeting America's turn and greening America has turned into -- of the joke these days.
Let's talk about these panels -- where they're actually meet they're not even made here in the US side.
Well that's a fact a lot of the components are actually made in China where there is no EPA.
In fact they may cause more problems than they cure.
So -- people feel very good about it we have solar panels who knows what the real long term effects to the environment are and it's also the cost of carry.
Bringing these things over in the whole nine yards.
So then why don't we get our energy secretary Steven she is saying.
The White House is a symbol of freedom and democracy should also be a symbol of America's commitment to clean energy future.
You know well that is politicizing.
An issue that is being hotly contested right now.
There is -- segment of our population that is anti oil at all costs.
And that -- segments interestingly enough feels we don't pay enough taxes I feel differently we pay more than enough we have to insist they stop wasting these.
Let's talk about taxes in general though because you're taxpayers practitioner you have your own -- firm.
All this nonsense is actually creating business for you.
That is very true -- compliance for instance getting back to these green credits right a lot of people don't realize that when they take advantage of that's.
It actually lowers their cost basis so they will be paying for this not only the cost of installation.
But on the sale of the property they will have a tax liability.
That they would not otherwise have.
So all -- glitters is not gold.
Well it's all about paying.
Just deferring or paying Peter Barton from -- they've fallen over the seeing is right I get the credit now but it -- my basis for went for later on so that doesn't help me in the end.
It really seems to be about placating certain special interest groups.
In this case call of the green -- -- what you well.
It is deleterious to our economy right now we already pay enough taxes we need our tax dollars spent more efficiently and effectively.
How are you planning right now if that we don't know what's happening we don't know what's happening whether these credits are being extended though I think they were actually part of that.
They come up into -- eleven if I'm not mistaken the green.
Credits I believe some actually will stay in effect until 26 -- -- -- right but then there are other things that expired in 2009 and we still -- out -- being extended for -- Can you deducts a sales tax vs -- and local and -- it right things like that.
I -- I doing how are you preparing your clients for eighth 2010 filing season.
Well we don't do tax returns what we do is we represent people when -- -- ready to challenge.
I go as far as preparation each case is different person have to already be in trouble with the federal government of the state.
Are you finding that's up.
Yes most certainly -- is it because the -- is cracking down because there and it making -- collect tax revenue will there is increased enforcement for sure.
But there are individuals who repeatedly were doing things perhaps they were not supposed today.
Either unintentionally or deliberately.
-- now because of the increased scrutiny they're being called to the carpet on the business is increasing.
-- we talked about the spent so are you seeing more and more is it.
Is it obvious stuff that this -- it's scandalous.
We are we seeing taxpayers just really try to pull the wool over the actress' -- because there's just so mad at them and -- almost trying to screw them.
I think that's a very small percentage.
A very small percentage indeed most people.
Want to do the right thing it's not a lot of the regulations.
And summer very convoluted.
Additional -- most people who -- running their own small -- midsize businesses that.
Really preoccupied majority of their time just staying afloat meeting payroll and that is one aspect of the business that's not all laugh so what -- the majority of your cases these days.
It is a challenge particularly.
Payroll withholding it's a very.
Hotly contested issue individuals who were treated as independent contractors.
The federal government now determines that they were actually employees.
That is a big deal to an employer but is that.
Are you winning.
It's a mixed bag okay comes on the back because then that's the -- saying you know we're we're cracking down his we need to Chris.
We need tax revenue and written this looks Fuzzy.
He's an employee not an independent contractor -- -- so.
And some of these cases winning may be.
Avoiding a penalty.
Previously and then having this individual treated as an employee from this point forward basis and -- -- -- Did it always good to have you thank you.
Good stuff going on at their David silly of his own firm.
46 year old mother -- four wait 46 year old Marine Corps that yes mom 47 now.
How -- and -- -- or four years.
Well done well -- David thanks for being thank you for having me.
I taxes are gonna continue to be an issue we're gonna be instant in -- -- talk about them around here's that's exit I have a soft spot form since I was a former Ernst and younger.
People are going to be paying out out there was -- soon enough and as a result I can't imagine how anybody can go shopping.
Kristen Benz got lover is here with us president of -- and blonde and Phoenix what are these days -- -- -- -- back in studio.
-- Garland then -- now they're not some and now we're scared to death about our taxes go announce -- that knows what other kind of these ends up on -- -- it's aware of what's retail lookalike.
You know I'm a little cautiously.
Optimistic which is you know I'm usually pretty bare -- so I think things are slowly.
Getting better but again you have to pick your spots.
It's all about bargain shopping and that goes for stocks as well as recap.
And you know it's a very much of it's a bifurcated market say the super high end is doing well air -- -- killing it LVMH is killing it.
And then on the lower and you have Costco like you said family dollar and you know discount retailers that are -- -- well.
Cost kind of -- I confuses me because as I was joking or half joking half serious -- gotta be willing to spend a fair amount of money to get there so.
It's not like I can go to Wal-Mart and for a buck thirty you buy you know a case -- soda.
I have to going to Costco and be willing to spend a certain amount of money.
You out could be upwards of a hundred dollars in order to come home with my savings.
Exactly but remember Tracy it's all about perceived value him so it's kind of like it -- that I mind track itself when you got to ask you think you know I need.
I really need the extra large box of -- -- cracker that's gonna last me five years -- now that is of value to me.
So it's all about tricking yourself and tricking the consumer not -- of course but is you know it's the perceived value of the consumer.
Yeah and also remember her.
International growth is the new black so all of these stocks it there's nothing else -- to say in an analyst says international growth you should start reason if you -- -- And that's a great point actually because apparently.
Internationally they too need 52 -- into a paper in their house at one time I don't what is about I better grab this we public safety thing but at least I had that I losing lately and making me nervous.
And their knowledge and ornamental river in my house like this -- they handled it got I have fat I don't I can't tell -- -- I -- got an -- I don't.
Who would use their own T shirts to -- themselves half days.
Okay let's talk about -- out there -- You know but my son you know in these employees and could -- I am now okay let's talk about how the weather plays into all this because I love that we always say that was it was a -- -- -- Rachel is still -- rain you can get to -- still.
Exactly well you know it's so funny out here in Phoenix.
You're hearing a lot and you're gonna hear this tomorrow the same store sales at the weather played into it was too hot in September in Arizona it's always freaking hot so people still -- here.
So that doesn't really you know bode well with me and whenever retailers complain about the lab where you really -- start looking at their business.
You know companies I love right now look at Macy's -- doing this amazing low poll.
Shopping -- be really focusing on their local consumer and you know they're actually shocking paying attention to their local consumers.
And when you do that.
People comment when you place -- that -- played your audience.
You know retailers will will profit from that so that's something to pay attention to -- -- one of those kind of file this under.
But it's working.
You know what's interesting is you what I am gonna probably go into Macy's now because every time you come on.
You like -- Macy's.
And I humbling -- -- It's a local -- little little local Macy's and I just don't ever think to go in the place but let me I know I have to ask me you can -- -- they thread discount cards actually I mean.
-- -- -- -- -- -- -- -- Yeah what else you should do speaking of discounts I was in Neiman Marcus last week.
They handed me a fifty dollar gift card when I walk in the door when's the last time that ever -- laugh our.
Yeah so remember it's all about being aggressive.
All of -- bargain shopping shopping and then to that point when retailers like -- unions are doing -- Then you have to watch stores like TJ Maxx and rocks because whenever middle -- it's like -- -- you start getting better.
Or Neiman Marcus get aggressive you're gonna have less of those brand name goods and up on the -- So that's just kind of a little inverse relationship to keep your eyes peeled for a good point -- about content content is like on fire these days how's that playing in -- The -- and all the all cotton yeah all that cotton it's -- a fifteen year high and that's something you really have to pay attention to it's kind of like you know I do working retail thing that we like to talk about but it you know gold going up gotten going up.
But definitely you know that's gonna cost retailers more so whenever cost retailers want to -- that good.
And yet it's you know you're gonna end up paying for it so you're gonna see costs rising -- -- I -- have fun out there.
Yeah man but really I don't talk about you stock picks we already so it's -- me -- You know I loved yes I want my Guess jeans and today I am like -- I'm still huge -- -- The Crocs you've got to explain singing I still have any -- I -- you -- it and I.
Must -- block -- -- up there I don't get it.
Okay and here is the name as -- faster you cannot confuse light teenage product or if liking a product with the company.
I know it's hard yeah I know -- final voyage of the retail company that someone is gonna go buy the products.
But somebody -- a -- take another look.
Somebody does and it's not just me.
You need to go and out of Salem so yeah I haven't seen one you need to gut -- -- to go out there making a really Q rain bit they're making cute little -- expert -- I'm talent yet many prominent watch anti stink.
Anti fun gift and talent and they float in the poll which is important for me I plan.
Right yeah I mean look everywhere and certainly to -- and we'll wait but but what you're saying is.
Somebody it is buying them and that he's somebody here is buying them.
Somebody is buying them they have great management they've revamped their distribution.
Take another look at this -- I'm -- -- It's not I'm -- I'm -- wrong all along because it has been doing well all along.
This another one that I really like is -- A pet.
-- he has lots stairway -- and you'll remember back in the Alley McBeal days remember when they had the most awesome students for women yeah see you know it.
You're like in your play with equality suit and the best teeny black pants out there -- remember -- -- of course.
And they -- expensive and they -- stated it was a great fit it was this week that it was an athletic bank now.
-- -- It's condone using out of me because I am I'm very confused I'm a -- girl eyewear to a fair amount of it lately though.
There's this old can guard as seeing crap going on and then there's like this hooker biker thing going on Napster where you where the -- a biker thing that's supposed to hooker biker.
-- throw my off hours back.
But even in my off hours and instead -- -- -- it so I did you an idea.
But I feel about a lot of companies that one company that I will say and I know -- -- it -- -- sort of found its way -- did not.
You know I have a -- for the bad boyfriend I have a love hate relationship with its stock they cannot fix themselves and right now.
You know -- every season it's like everybody happy everybody in white shirts everybody in some things of this -- it's black pants.
Let me tell you something.
If you're like me and most women we got about twenty pairs of black pants -- our cause that.
You got the light weight once he got the -- ones you got the fat ones you got ballet you know sexy ones ugly ones.
You don't need more black pants and -- -- -- -- -- and and an environment like this -- key to being merchant is.
What you -- in my closet that I don't already half.
And big gaps coming -- -- with black pants who thought about one -- OK -- I -- invest in some retail stocks let's just ended this do you invest in the ETF.
Or are you still stock specific like going to the mall and start looking -- all the stores and see who's busy I mean is that the way -- do this.
You know if one more person tell me that you know their wife pulled -- the parking lot of target was packed.
-- they saw a lot of shopping bags at the mall I mean.
I'm a fundamentalist when I come to re search -- actually in the malls but I look at a lot of different stuff I wouldn't buy it ETF right now -- -- I would definitely pick your spots.
And the thing is looking at lululemon and you know I talk about this every time I come on SNL kind of it's an Al liar but it's a -- it's really taking but right now -- -- just came out with a new heat brand called the Veba.
So they're doing you know cradle to the great marketing and that's something to pay attention to you but it's so parents -- that 98 bucks for yoga pants are you kidding me and people are buying him.
Goes back to the Crocs theory people are buying them to take a second -- sometimes it doesn't mean the -- that's -- is necessarily doing.
Doing well look at Abercrombie you know I'm hearing they're probably gonna make our -- tomorrow but but they're buying counsel their margins -- -- economic sense it's crazy you got -- really pick your spots here.
Well he got -- -- keep listening Kristen Benz as it's got to do.
Growing and -- back and set Christian then Fred I -- and it sounds good line out in Phoenix tissue twins we'll see you again soon grow thanks for coming -- -- stop.
He got at.
I retail I'm sorry it's -- it confuses me it just does but what -- Lionel and I'm -- I'm -- time I whenever.
I let's not about.
Corporate ethics now because it's something that apparently this country.
-- many will say this country Wall Street is lacking Jay -- -- here with us right now.
What -- stand these days isn't getting better I mean after all this we're slowly inching our way out of the recession are you -- to see.
Corporate ethics may -- come back as well.
Well what I think was happening as you know we need to come back down to the roots as to what investors are waiting for.
What they're looking at in terms of what's important to won't.
And then how does that translate into corporate behavior.
A lot of what's happening is that that is not happening so we have a situation where.
The Wall Street is an imposing upon.
The business is certain financial requirements.
Without the other part of it without the stewardship part of it without the the the other part -- you really can't see but also represents a significant risk.
To that investor so I believe we are getting better although you know there are quite a few companies out there there are taking that risk and -- which is unfortunate.
Some and -- -- said that the corporate ethics was an oxymoron.
That is the way.
It is perceived to be -- what does Wall Street corporate America have to do.
To drop that because it's it's going to take a lot.
Yeah -- aren't all that is an oxymoron you know it is is food and try to maniac you gotta have ethics as your foundation as -- base and and this is what you've got to do.
You not only have to focus on your financial performance as a company.
You have got to take a look at this thing from -- -- talent point of view we've got to look at.
Customer satisfaction and employee satisfaction you got to take a look at it from from an overall.
Type of of of an environment and and type of of -- approach in order for this -- to work so corporate.
Performance corporate behavior.
Is not something that it's by gone it is something that is.
-- to be happening now it is something that is essential in order to stay in business it is something that I believe.
That investors should demand as part of the return on investment capitalist part of the terrible or working terms as -- -- all -- financial criteria that -- used to.
-- know some of the stroke and Steve man you set out here you can't buy ethics.
And they don't get -- Cummings don't get -- and that's very sure you know what you think is buying me and say.
Cool -- big -- in the park for breast cancer and that makes me this fabulous Philanthropic company or.
You know -- how many give you pizza party because I care so much about my employees that it doesn't do it.
No it doesn't -- you cannot -- ethic -- start for the culture that's foundation only based it starts with with integrity.
It starts with a promise to be the best and and do it and an ethical way you know it it.
If you focused specifically on the finances which is typically where we find the issues company's focus only on the finances and -- arrests of the of the -- corporate responsibilities.
That causes an imbalance in the model and when you have an imbalance in the model.
Then you have tendencies that are not conducive to business and they are not appreciated by the stockholders.
OK so let's talk about though the way Wall Street works and he lost his focus on financial performance right.
So sometimes he's got new guys new and if it is ethical or unethical maybe have -- part of the equation.
Well that's the problem it's not part of the equation and you are correct it -- and it should be.
You know -- we should behave this way.
Should take a look at the financials.
Should take a look at what else the organization is is performing it's doing how the business is being conducted.
It's just as important as the business itself.
And as soon as Wall Street.
Commit commensurate with with holding people accountable for their investments for example when I buy stock I'm -- ownership -- -- that particular company.
Right and assault.
If I owned that company and that company behaves in a way that's not ethical or or it doesn't fall on the integrity lines.
Then I should be held accountable as well because I am part owner.
Until that happens.
Then the likelihood.
That companies are going to.
Switched their -- is is going to be very low I got ten there are some very great companies have figured out it perfect balance between.
-- -- -- -- Yeah I would say you know if you look at.
And Johnson & Johnson.
And the recalls you know you got do what you gotta do.
-- got to do the right thing and and and if you have a product that was painted -- you have a product that.
That's not going to affect that's going affected the population in general and you on up to it.
And you make it happen and you make -- change how as a very high critical well above BP recently because of all of everything that's happening -- VP in my opinion.
It started to do the right thing now dating do the right thing before but now they're starting to the right thing to start to realize that production.
It's not the end.
The end is production in conduct in conjunction with distortions that they have -- -- -- follow in terms of being a great -- -- its corporate citizen.
You know though.
It seems so logical -- and somehow gets lost along the way and I want to be like.
Surely -- -- in here and say it starts at home it starts with the way you are raised.
If you raised to be an ethical person you got you hope that that translates along the way but something happens and we've seen it -- make movies out of it.
Gordon Gekko be the first to tell you that ethics can go to pot when it comes to business.
And somehow that gets translated -- completely overrun by the guy who tries to do good.
While -- slowly you know an organization is really an entity in the entities made up of out of all of quite a few.
I identities and itself -- it's almost like a multi multiple personalities.
And so what happens is that you get group think so what happens is that -- external expectations especially Wall Street.
When they are -- into an organization.
Any internal organization tends to react to that and they tend to forget.
That there is a base there is a way to actually perform business in a way that's ethical its -- with high integrity and that's gonna still meet the bill.
Satisfy their customers and also meet their commitments you know as do what you say say what you do -- that -- will be met as well.
And importantly citizen lab Lawrence small business because these are mom and pop shops that.
Many times -- immigrants they do the right thing they're not look at -- screen they just want to make you mad because then you come back.
And that's been like a little common theme on this chat and that's been going on simultaneously while we're talking and you -- read I need not come back.
I won't patronize you again you know you got a client for life if you do right by me if you -- I'm gone so.
You know you're you hit it right on the -- it's not the problem.
Is how you go about fixing the problem.
If if everybody has problems every organization has a problem -- how you go about fixing that problem.
It makes a big big difference whether US a client will come back or even as an investor if you're gonna if you're gonna take a chance at a particular company.
Yes you know you right and prime example you noted Johnson & Johnson.
-- Tylenol pulled up the self fix it -- already on the other hand we couldn't figure out what the heck was going on and Toyota sales have not picked up since.
Jay Rodriguez thank you so much -- of sparked as quick conversation on our board's corporate ethics console -- and this is that we can talk about all day and like I said.
I think it starts at home but I'm Laura -- -- -- comeback against -- there.
Thank you very much crazy but thank you for -- -- I I am gonna take a break because I promise of lower Ingles and I can't get beyond that now but really fun right.
Teaching kids to be good they grew up to be good sometimes along the way -- I can figure out.
You Dow flat actually was a little bit read at one point let's get it back up.
We take -- -- we got to come back and talk about oil should you be investing in oil that's going on there should be put your money back -- still and done with gold but we gotta talk about it.
And of course -- -- Webb -- getting davis' report from Baghdad.
We will be right back.
Welcome back at the -- live -- Tracy -- you Dallas flat right now it is falling a bit and on the figure out why I think you before the show's over because it as it was different different -- -- at one point two.
-- -- We got a ton about these commodities -- I gotta tell you if it's confused a lot of us -- included because.
Back in the day back.
Ten of fifteen years ago when I was a little Porter at thestreet.com.
-- wind up.
Commodities went down to me was there is still inverse relationship then there's nothing lingers about it now and there's nothing obvious about it now everything is his movie -- and we don't even know why it's move in these days it used to be well infrastructures up.
Silver titanium will go up but that's not why these days and there's political influence.
Beyond belief in all -- -- we gotta talk about this Stephen Levy is -- CIO.
And -- chairman of -- capital management.
I I'm not -- heavy consultant -- can -- -- I don't even a way to begin.
Gold keeps hitting these.
-- Okay we'll look Tracy first of all yes gold is hitting tax.
But you really have a synchronized move in a lot of money in most commodities -- you're guessed that I'd just heard you -- wonderful interview few minutes.
The retail woman from a California has talked about cotton hitting a fifteen year high yes.
And -- without hitting a fifteen year high obviously you heard the rest of her conversation.
Because retail is so good in this country my question is how bad retail list.
Cotton hitting a fifteen year -- in mediocre at best -- they don't compute.
Industrial commodity prices which don't include gold don't include oil.
Are hitting all time highs as we speak.
All time highs these include things like hell -- scrap metals etc.
even -- why that why.
Because the developing world is developing very very fast and we're living right now in a zero sum game.
And we are swimming upstream.
He used to use this is not a good deal less then -- -- is nothing to do with the US the US -- now.
With unemployment at nine and a half nine point 6% close to 10%.
Is facing record high commodity prices.
This is impacting markets it's impacting you might you go -- -- fill up your -- -- car and now people have gotten used a three dollar gasoline.
You go back ten or twelve years ago and you tell people at that the US -- Ky US unemployment rate is going to be nine point 6% in the decade.
You tell people that housing starts in the US are going to be.
Half a million.
What do you think copper and oil will be under -- those conditions and I'll tell you what they'll say because -- -- that -- top.
Commodity and other that they don't have paid for and confederate they all thought about the same thing copper seventy cents.
It's close to four dollars.
Oil twenty dollars it's close -- eighty and are expected to over eighty dollar 8080 right I think so what's happening here is that we hit probably the worst decade.
Since the Second World War I think since before the Second World War since the great great Great Depression.
Yet because of the strain.
In developing the economy it's not you're talking about an economy -- multi trillion dollars namely China -- growing somewhere between eight to 10%.
That's unheard -- in the history of capitalism.
They need all these commodity anymore I get it I don't why they -- cut -- first I don't believe anything that comes out of China because the numbers I mean why I don't like you have to believe though.
You don't have to believe anything that comes out of Canada GDP numbers or anything else -- -- It can't -- with right now the price of copper.
Other guys that because of housing starts in the united -- know I I great.
It's housing over there and its house in India and Indian housing in Russia and that'll make sense to me OK even -- someone asked about -- about -- How about this -- is out before I saw him.
In his outperform -- by probably sixty percentage points over the past twelve months.
Copper is outperform gold silver is outperform gold.
So many different c'mon I have bumpers on the section story I get an infrastructure story well it's how easy it is zero -- story.
What's good for a -- is terrible for us.
Because when pin goes up and cotton goes up that the head -- that the tax we did a bit of the envelope calculation Tracy.
Very simple minded calculation and we -- how -- median income today in this country stand.
-- ten years ago.
Now we know that the economy's been lousy over these past ten years but when they calculate median income.
They don't calculate the fact that oil prices have gone up despite no change in oil demand.
That's a big -- oil prices have gone up more fault you know they would drive an -- No we're not.
We're consuming right now but -- and a half million barrels of -- on the day we may or may not be driving a little bit more I'm talking about total consumption tax on nineteen and a half million barrels a day that's about what we were consuming ten years ago.
So we have not driven demand it's not demand -- -- -- this is that -- exit slapping us in the face we're not buying more beautiful outfits like you have bought.
Yet cotton prices are driving close prices up that's attacks on the US right now we're facing massive head winds.
Median incomes in this country and we can start that -- to begin with.
I mean -- what anyone tells you fifty grand is not a lot of money -- that median incomes have gone down.
By about 10%.
Over the past decade that the massive head when I great but -- -- saying then that the reason for the headwind is because.
These commodities from overseas the demand is higher overseas and that's pushing the price I think we as a result.
Are are the beneficiaries of this higher prices because -- and other benefit here all -- bad where we are.
Unfortunately being -- right because we're getting until he's growing nation -- getting killed.
It's zero sum game -- but what my point -- is.
In a weird way that makes sense it does make perfect -- -- -- hoping that makes no sense flood doesn't make sense because that what are.
Are we doing in this country unemployment nine and a half nine point 6%.
What do you think the Fed is going to do at the next meeting.
That bid that they have in spite of record high commodity prices you -- public money -- yes so they're gonna start buying bonds something that they've never done other than recently.
And to think if you had told anybody -- go back -- my ten years ago.
We've reached major points of inflection we are hundreds of miles from Kansas right now hundreds and hundreds of miles from completely new world.
Is right let me know yet -- does that he didn't know where he has to keep cool -- from the wizard Abbas.
As far as thick skulls where we are right now you tell somebody is -- doesn't have a break -- down the right right you can get edit and edit yeah.
That is absolutely true but that's another topic we're not talking about -- here where we're talking about the world in general.
And just a total failure to get it.
From the beginning from the beginning all started you know maybe in 2008 I don't know but that's another discussion.
Right now you -- -- you ask an economist.
Ten years ago industrial commodity prices.
Worldwide -- hit all time highs yet all time highs are gonna -- -- 80% in the let's say twelve or 1518 month period I don't know exactly how much.
Do you think under these conditions that quantitative easing did you see.
They called a man with a white coats and have you taken away for even saying such a thing but here we are.
Debasing our currency -- -- our currency in the face of record high commodity prices Stephen.
We have -- you come back.
When there's so much to talk about an interesting world but it's not the same it's not the -- And the LA if I can just say one thing you have got lifelong Democrat I gave up on -- idea I'm effective but I -- to say this on fox you know.
Good that the it is the Internet and things I can't let anyone really threw me okay.
We hit it crying need.
To develop infrastructure in this country yes absolutely yes billion dollar indeed I mean there's nothing wrong with the government investing I have no problem with that -- you get a return on investment.
We come in and you have 800 billion dollars that you throw away if we have put that 800 billion dollars into renewable energy.
You know we would be having a totally -- For each candidate Tracy continue are now let's see it melted like that we can with -- -- an end -- end -- -- and we got another candidate.
-- flying monkeys and I'm not afraid to use them getting beaten.
We're gonna break -- in Seattle and in recent chairman of the capital management thank you so much as three feet actually we're going right out to actually in Baghdad who accused listening must think I'm a total whack job what we've been talking about The Wizard of Oz asked.
And I guess that's kind of what's going on out there that you know -- wizard has come.
Attempting to help.
-- -- -- -- Well -- very good question I already know you elect job Tracy so don't worry about the capitalist.
Let's talk about what's going on -- a lot of money is being poured into this country how much 718.
Billion dollars when you travel around.
He wants to ask yourself when editing -- what was the tax paying getting out of this.
But the UN -- UN ambassadors or accidentally you know what it's important for us strategically for the US in this region it would also create trade opportunities and on and on and on but the fact remains this is -- Syria -- country that has a long way to go we talked about it yesterday Tracy but you know crime is still a big headache here -- corruption is widespread.
So much as part of the culture certainly on the government level.
Pay backs and kickbacks and anything else you want to say is just a part of life here.
Money tends to disappear -- still looking for some money that was -- -- full reconstruction.
From oil -- they don't know where the money went so as you can see it's all very chaotic.
At the same time the US Commerce Department says hey come on US companies come on on here and invest so it's somewhat of a tough sell but there is the belief that the potential and Iraqis tremendous debate -- -- -- a question is can they bring stability to this region what is the future right now it's still remains in limbo.
-- even over two days actually been there for more than that now what -- -- what surprised you the most being over there.
Well you know we actually got a -- -- to go out into the streets and actually look around and look at the stalls that are open and the markets and on the -- physical looks very normal but so in reality it -- Many of the people it just kind of scratching out an existence right now we get some costs compares.
You know like half a dozen -- about eighty US cents two pounds of Orange is about a dollar twenty things like that the food prices are bad.
But what I'm surprised about is just the complete chaos of the place to be honest you get one -- on the US embassy compound which I understand.
But once you get out into the real Baghdad it's just chaos out -- -- it's just a series of checkpoints every street you go down.
He got Iraqi police or Iraqi -- Military stopping you and it's -- very tense because you're not quite sure all.
You can be go through two of identical checkpoints one you fine and then the second one you'll not so it's it's a very inconvenient way to do life and I find -- absolutely exhausting and I don't have to live here but.
Everywhere else also one -- -- really surprised me I think Tracy who wants to question is.
Whoever got the concrete.
Contract for Iraq made out like a -- huge concrete walls on each side of every street and they were actually there to protect from bomb -- so that's kind of a reality check.
But it is chaos they.
They have traffic lights of the US apparently put in two years ago which everyone delightfully -- So you just fly through a lot of red lights and it's just drive the car quickly and straight -- your direction and hope no hits yet.
Kind of like Roman actually but anyway.
You know the -- Come with -- and leaving Sicilian mafia comment in there wasn't there actually went there not green -- McConnell is.
-- -- -- And when they did I mean really.
Actually you're awesome and you know what the next sentence in traffic coming over the judge rising -- -- -- thank my lucky stars that I have to go through fourteen checkpoints -- just to get over it right I mean we we take our lives for granted.
Yeah you really do and it's a yeah I wish someone I wish everyone who complains back in the United States or elsewhere.
Could come here and live here for a weakening go back they'll have a whole new appreciation.
How easy their life is that you actually right all right -- you make my job really easy button can you get home like super safe and come back fast always.
We'll be coming home safe and soon I promise you'll see you next Monday.
I could act as US and around Baghdad he's been doing some amazing stuff out there yes so the next time something -- used to (%expletive) you off on the way to work on the way home.
Thing about all those checkpoints around Baghdad and how those poor people live.
We -- a Dow that's down about three points right now we're we -- given back the little little gains we have holding onto -- -- today's Wednesday big jobs report on Friday ADP number not so great.
We'll see what happens between now and then hey -- fun today.
I love that we worked in The Wizard of Oz and I called -- -- floor angles does rehashing the seventies very off Dow's down six -- have a great day esteem.
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