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Welcome and you survived it I did -- a blast that was in Atlanta watching mile mater Georgia Tech beat Virginia Tech they're yelling at me have a 6 o'clock team.
Two very different from the new game -- that for you to be my -- you get up.
You know you for new -- -- yet they're like ten they have a couple of Beers.
Maybe since the right Terry -- whatever and -- go to game 6 o'clock game.
You're also getting their news -- have a good six hours man to just and when it's cold.
You got a great excuse I -- you warmed -- because I got six -- until you're gonna get three and a half hours a game so I that you warmed up so yeah.
If I wasn't the only 150000 people tearing down a goal posts carrying around campus lot of fun.
That he backed up.
Aides say and I don't know what do you mean that the.
I'm -- well it's big time college football and the did you know the next cabinet talked to knows something about that even though it probably knows a little bit more about big time college basketball Robert -- -- -- the UNC.
Those all about winning national championships and final fours in basketball football still pretty good not so much -- -- a beautiful played as a beautiful and honest.
Behind trees -- I think.
At least I was never I -- don't we don't play at that level is that why I just never.
Uncle -- -- -- today even the small school like Lehigh you have Lafayette which is a big -- after bad guys.
It's still love it and is hands down the greatest experience the -- Davey O'Brien and then -- -- about it and I played football -- if you guys them.
That's -- of brilliant man mom -- Robert what's going on that -- by earnings wise because the you know yesterday we -- some housing stuff that kind of got us off to a bad start the day it's really all about earnings -- -- for bank earnings with the -- and it got us going -- right AM at bowling really setting a negative tone early in the futures are down a lot and and bowling actually.
Is coming back I mean as I came in here they're only down and -- they are well off the lows of the session they slashed their full year forecast never a good thing but it's all about the 787 dreamliner mean.
You have role of the the Sandra Smith BO funny goggles a video if you will that we keep -- on the network coverage to learn very adorable enough -- why people that you -- not funny or not they're just they're they're exceptional that she doesn't read whatever else had -- she had the -- it's.
Some of what I said first shots you know whatever I had a designer -- yes you think it's it's Sandra -- in his video.
They ought to Wear protective goggles got the -- Braylon Sandra Smith -- -- -- these I read this goggles like -- like it to fashions plus he's everywhere Boeing I didn't write down point 85%.
Now there's anybody have forecast to get that baby in the air and it -- Right now what's what's his defense is not picking up the slack for commercial -- we know commercial airplanes people who start buying them they've been putting off for canceling orders are financing only 800 million dollars worth this year there had originally planned.
To finance a billion dollars with the -- so that's that's a pretty big difference there and isn't slashing that forecast hits me hitting the bottom line basically is what it's doing all the way down to buck 55.
They -- think it would make as much as five dollars that's a huge decline there.
It is still say that -- -- gonna hit the air by the end of the year.
We'll wait and see that exactly now that have put off what 56 times already signed an out of -- -- -- -- -- so I -- -- -- that.
Pretty much everyone's saying it's high time he steps -- -- the 747 cargo plane yeah now it's also been delayed write in it RD c'mon Sid Evans had a charge on that so not a huge surprise that they missed last quarter.
And they are -- another full year revenue forecast which I find.
-- -- interesting we'll see if if that really happens to but he talked about the banks.
Get to Morgan Stanley me investment banking we talked about Goldman Sachs it is really boosting these banks because we've -- -- -- record secondary stock offerings debt offerings.
IPO market's coming back to life and these guys -- bring it to market and they are bringing home the bacon from that in fact they're number one globally.
There ahead of Goldman Sachs now more and in -- Morgan Stanley as and so they've got something to to -- more about they had didn't take on as much risk in fact they got taken to task for not being risky enough.
They did boost their -- but -- not mean we saw Goldman profited by getting really risky in the past quarter and and a half.
If you will since the market's bottom but a minute and this is one of my movers later Morgan Stanley they profited from fixed income sales and try to -- this is what we -- the -- death Goldman Sachs trading on but.
Hang them up exactly and that's what they do best and now also missing the wealth management keep in mind they're gonna get Bill Smith Barney is coming in from the city is coming into Morgan Stanley they're putting that together again -- -- management.
They -- -- you know like a trillion dollars now on and change under management evidence that got a lot of castor.
Sort of building up that business as well in not being quite as risky they're trying to be a hybrid I think between.
A Goldman and and more of a bank bank and -- mortgage exposure was cut down as far as their their write downs go real estate losses just 400 million just 400 million dollars but.
It weighed in at three straight quarters of losses to their back back in black if you will certainly AC/DC -- and months.
Wells Fargo on the other hand you know third quarter they beat revenue and earnings if you as you said if you believe the bottom lines they're ready more than doubling but.
Still lot of concern out there even after the conference call tonight you know that the consumer loans may not peak -- -- the defaults and and -- late payments may not peak until the first half of next year's it's pretty far out.
And that's one of the reasons the stock is under pressure they also say you know that.
The -- they conservatives lines may not be paid back at all.
That's also come into weigh on the stock and their their charge offs five point one billion dollars now that's up from the last quarter delta saying.
When silver lining -- bear the cost of consolidating Wachovia.
It's going to be to do is going to be less than seven point nine billion dollars and that's me a lot -- say but they'll still get them.
Cost -- Saddam through that.
We'll see but it is Wachovia those the end of the legacy loans and -- as -- -- -- -- it's killing the which Wachovia got from golden west out in California when they bought them at the peak of the market for.
Overpaying there in the pick your payment mortgages and all these exotic mortgages that are really just coming back to.
On average that's why I had this we've talked about this year with -- MacDonald.
Does not gone anyway away any time passed him these legacy loans and then just linger and hurt until they can work them out or write them -- have to write them off -- they.
That exactly rabbit thank you thank you are now for -- -- -- line was out.
Those -- at 10 o'clock and in my.
-- -- Those early exit -- now is noon yet started and I -- -- -- plot -- is the.
-- -- -- -- -- -- -- of -- that apparently now -- -- -- Tucson Arizona David shepherd financial advisor at retirement financial services.
Did an ally you I think for having me thanks -- MS so nice and warm out there I won't get into uncle that typically end here in the studio instead we're gonna jump right to the markets and what's going on in what you're seeing from -- -- side of the country.
-- -- I think the biggest thing you know this rally has been great it's been a phenomenal run.
But IAM concerned right now we've come a long ways we've come a long ways really quickly.
And so I think you know I'm not sure how much farther this has to go.
Let me ask you David about housing yesterday we sort of got.
A little bit of a sobering report in terms of up.
Ill -- Spitzer is of the what was it done yet permits yesterday they came and lot of support as existing home sales I don't think on Friday.
But still maybe a sign that this rebound -- housing is slowing down a little bit do you buy that and how important do you make the housing data that we get now over the next couple months.
Or what I think is really interesting is I don't think a lot of the information a lot of the economic data points that have come out have been spectacular.
I think they've been better then the worst but they're still recessionary beaten and I think more importantly its interest in to watch.
How the market reacts to any given new cycle so right now we seem to be in a time where.
The market is is sort of shrugging off the bad news and really just loving the great news and that's it's this is the market climbing the wall of worry that we hear so much about.
But you know the market can be a manic depressive and it can change -- just like that so.
They -- the caution.
Is that that I urge is what happens when the market changes its move towards the news I mean a couple months ago.
Yeah it -- -- -- it -- trade in this market on the news wound out something that Chris and I talked about.
It's it like a day -- market out there we get reports in the morning and that's -- which we trade on the based.
For the rest of the day the day closes we come in fresh based on -- report we got after closer in the morning the next day and that's how we treat.
It's very difficult place to be for the long term investor if you follow these gyrations day today.
I don't see this changing any time soon we have this over reactive market when do you see that going away -- are focusing on fundamentals again.
You know that's that's a real tough question I'm not sure what the answer is.
I think the idea -- you mention the long term investor a lot of times people associate long term investing with buying and holding.
And I think that's something that's going to be really difficult in the next.
In the foreseeable future so.
The approach that we prefer to take as we prefer to take a tactical proactive approach.
And we want to identify trends and follow them as best we can.
And you know one of the things that we really look at that that you can get a feel for if you if you use.
Technical analysis along with fundamental analysis.
Is what is the risk level of the current market.
-- -- if you're if you're golfing if you're out on the golf course and you're teeing off on a 400 yard hole.
Are you gonna get out here you're nine iron or you're gonna get -- -- driver.
And and I use that as an example -- -- trying to turn -- how to identify her arrest for me right.
But -- you know are we on our we fifty yards.
From -- -- and the winds are based are we on the green putting you're not gonna get out your driver if we're on the green because you're gonna end up on the other hole you're gonna cost -- -- and it's the same thing with investing.
We need to exercise caution.
And and take into account where the risk levels are at especially in a market like this as volatile and I would say as moody is this market -- So it sounds to me like David you're you're recommending a very conservative approach -- mean does that mean that you like certain sectors moving forward in terms of picking.
Equities do you like.
Do you like cash and -- even -- the situation where inflation has got to be coming soon at some point time.
Do you still like you -- know large cash position right now.
Yeah well actually act you know what -- what I'm saying is that I recommend it.
Caution that's not to say that now is necessarily the time to be extremely conservative but.
We just need to take into account buying and holding and hoping may not be the best thing and we need to be more -- proactive so.
There are times like the last couple months where it has been beneficial.
To be a little bit more aggressive so things that I like now things that are firm likes now.
We like mid -- we like small cap as opposed to large gap we like both domestic and foreign you know.
For an inherently has a little bit more risk associated with it in US stocks.
But when the dollars depreciating like it is you get a lot more bang for your buck in the foreign markets than you do domestic.
It lets talk more about the housing market and how I've I've believed -- we believe that you got to fix this housing market to get us out of this at all on -- paying enough attention to it is this tax credit this solution.
I mean yesterday someone what are the viewers wrote in and said it's -- -- cash for clunkers.
All over again so it's a quick fix goes away we're back to square one we already saw mortgage applications dropped because the -- going away -- on November 30 so.
Is it a quick fix is it necessary what do we do to get out -- housing slump.
Something is necessary I'd I think you're right this is a quick fix I watched your show yesterday morning and I was listening to your comments on that and I think it's too small it's too little.
And I agree with you it needs to be bigger.
I was I I'm not sure exactly.
Just so Chris knows I was someone arguing with Peter Barnes that he should marks down to Washington and demanded bigger credit for all income people can hear what you say but it -- to play devil's advocate today David.
Don't we need -- allow all the housing market defined its own bottom a true bottom.
And not synthetic we continue to prop it up so it -- it falls off a cliff at some point time in the future.
Yeah I think so but but what about all the money that's being spent out there and not on the housing market on all that.
The bailouts and all the different programs that are going on I would rather see that money directed to what I think is a a big part of this recessionary problem and that is the housing market its its its prices it's foreclosures.
And you've got to address that problem so I think I think you have a good point Chris.
But I think if there's going to be money being spent anyway is certain it is better spent fixing the housing -- well.
And bailing out the banks agreed that you get to the argument and Jay wrote in and said we gotta keep the government out of everything I mean we have to stop this whole notion that the government gives handouts.
And continues to do this in order to help things out maybe the government should -- back off ticket tax credit back -- it comes to its natural love.
Yeah I that would be real tough right now out of you because like like Chris was just saying it's it's propped up the market.
And if you take out a way you know maybe it maybe you could make the argument that it shouldn't have been done to begin went.
That's a tough call I'm not gonna make that call but if you take it away now.
I think you end up compound in the problem but it's it's a real tough situation but I think if there's going to be money that's going to be spent.
It should be spent on the tax credit and we should increase that and maybe take away some of the income limitations.
And why why can it not be for all buyers why does it have to be the first time home buyer.
How carving out -- -- house at what the market like in Tucson these days.
-- it I'm not an expert but it's it's still tough it's getting there.
Statement but let's talk everywhere still and I think in our area we haven't seen the lows David shepherd out Tucson Arizona.
Financial advisor would return in financial services thanks so much for sharing your thoughts and get up early to be with us.
Hey thanks -- lot for having me.
Yes thank you you know -- good thing too I mean you Dublin government involvement take on involvement out of -- -- the do you mean the Fed as well in terms of what they've been able to do.
Adding liquidity in the market place.
And you that they continue to talk about where it's not time for us to pull that back -- used you think boy.
Pull it all back in right now -- -- let the market -- the true market.
Falter on -- only think about the Great Depression this is one of the things that.
Melanie let the time was running things basically said -- not sat back sat on his hands.
And I don't yield purport to be greatest going to the Great Depression -- I'm sure Ben Bernanke you asked -- would say that was one of the biggest mistakes.
That was made at that point time was not stepping in soon enough and allowing the -- -- completely fallen without having some type of government about the -- that is not all.
We don't know what -- true bottom is we're gonna see your true bottom eventually -- what's the exit strategy and now you have the government.
With their sticky fingers in everything look what's happening -- dictating compensation now they're going to be controlling what you Wear to work soon enough Chris.
I don't know we had to take a break but you need the government's -- -- go.
Who control and will what I would alert and Yost put a stop to this right now from stuff.
Twelve point three points on the day on the Dow welcome back Chris -- and Tracy -- don't forget you can email Alison at the end live at foxbusiness.com follows.
On Twitter at at the end lighting download our podcast -- insert for fox business and we're also available on Hulu.
Search for Fox Business that was good on your part -- up thank you -- -- banjo from not Dow Jones & Co.
is here -- to continue our discussion.
On markets and specifically -- to look into up.
Internationally you know we heard.
Before about -- it would be in certain people's they'll David's asset mix he's maybe looking more internationally.
I think that is certainly Smart way to go in terms of adding more maybe to your asset allocation how much.
Are you looking at turning from the domestic scene.
The international scene well essentially these people it's a huge shift in the way Americans are thinking on the -- people at 708090%.
Even -- a 100%.
In US domestic stocks and bonds -- whatnot.
Now people are having a mind shift their sang I the US isn't.
The area for growth anymore so let's look at where that growth and it's so you've got brick -- to -- emerging market funds.
And that huge flows of money are going into this.
But what's interesting to me especially with financial advisors with all due respect to them.
And that expertise have to supposedly changed along with -- and the question always I have is does it.
It Kenya if you're one -- shopping you hung rushing on -- you know front door and said hi my financial advisor.
And the start managing your money -- -- my expertise in the domestic United States and now the -- brick countries and place today how to argue that.
I it's a huge.
-- for financial advisors have until I was have to -- not only on top of the market but on top of everything they've got a handle.
Sometimes terrible planning for their -- they have to handle everything for their clients.
So they really have to do some due diligence on looking to.
You know where this money is going getting educated and it in these types of markets and finding out where the growth this because it's not just a domestic US world anymore it's huge world.
And investors who aren't going out there are gonna really -- Yeah I think to -- you would what you're finding.
And and -- -- question is are you finding that it did focuses more on.
American companies that are doing business overseas we certainly saw with Caterpillar's earnings earlier in the week doing very well in the Far East and -- today.
The recession may still be going on in this country in Europe -- -- looking the at a bit by selling tool our customers in the Far East is that sort of a focus whatever you.
And eighty cents those amazing sense -- -- afraid it then invest in companies the big ones GE caterpillar those that -- -- You know build off this weak dollar have great profits abroad and -- still for the US investor in the financial visor might not know so much about.
Investing in saint ETF a -- -- or something like that they can stick with the companies the blue chip companies they know that -- national yet because I think even for people like us.
-- in this every day it's still to me very mind boggling about what goes on behind the borders of some of those companies.
I was come back to China China doesn't have audited financial straits we just get whatever they give us that could be anything but we talked about that -- talked about -- so we have these big companies that ever was O.
Countries excuse me that everyone's always talking about getting in.
And yet we get it right with -- -- the big picture I mean everyone's been talking about China the past few.
The past year sell at that -- gonna lead -- the I've recession China's and it will lead the global global world other session that's where -- that's with a big money -- so but then there's always that excessive.
The risks that we take when you're -- in that's emerging markets and that's what has been in the past keeping these US investors a little afraid.
It is the risk and that he up and downs of the market but look at the US stock market you have no idea -- -- you know Chad comment from one of our -- -- as the fall the US capital flows out of this country how we ever get back on our own feet.
So it is almost the patriotic gang -- is certainly not gonna sell somebody they make less money.
For your retirement but be more patriotic but if you can find a way to do that certainly.
That might be something to consider -- we talk about the fact that we're no longer manufacturing country.
No -- no longer manufacturing economy a big part of that is.
Foreign companies are coming in here to the states building airplanes you're selling their products here but still that money all.
Only goes off to some point plan branding and there's -- -- she mind to what I was saying earlier that.
You're not -- a US citizen anymore and if that's the way you think -- your portfolio might not really be able to capture growth.
That's existing outside.
That's what do I think it's important for people to do as much homework if they can -- I think Morningstar dot com this.
I think one of the best out there and analyzes mutual funds I think if people are trying to dive into these overseas.
Countries if you're not doing it through -- McDonald's or Coca-Cola or even caterpillar and caterpillar more global and domestic anyway these days but.
Do so by Donald says I guess but do mutual fund and go on Morningstar will rate them and give you much better idea where investing money I NE TF -- huge emerging market each yes.
Huge inflows last week was the biggest of 2009.
And because they've seen since they've -- been recording since 2001 and so.
He can't -- I -- it easier for -- -- for the individual investor for that financial advisor who.
Might not have that kind of exposure -- good -- thanks for joining I think -- -- can Dow Jones & Co.
Com what we're still up on the day so very positive here -- 32 points on the Dow S&P just.
The smidgen below that 11100 number as though a lot of people looking at that's the above 101000 as you'd see on the Dow all the could drive this morning Tracy you know -- -- -- I don't mind -- thought goodness expressed them and will affect a -- -- an interactive did a survey of the most stressed cities in the US.
I'd like to name my town in New Jersey but I won't because need to -- of stress but that's a -- you would think would be New York.
It wasn't my guess.
Do you -- now Obama yes I guess Chicago.
-- -- -- know there was another report that was similar to that one.
It wasn't the most stress city it was the most Warner read city I had a different report and that was also a Chicago -- hasn't attracted basically says that should cut people got up the worst.
Work life balance.
They can't seem to figure out they seem to -- two months we can't take a break.
Houston number two Boston number three LA forced San -- -- number five that is the most shocking thing in the.
LA -- -- -- I guess that the road rage in traffic and it plays -- -- but San Diego they Y ago San Diego is the weather is perfect all year long that's still laid back Southern California.
What do they have to be stressed that.
They're never -- the -- the San Diego it's the most relaxed city -- Big city had a guy never mentioned awaiting -- New York fell.
It doesn't deal with New -- economy to say it's let's cut a part of that is the weather.
It's windy makes -- and it's brutal yet.
I'll residents got a he's like miserable for the next six months came out right after I think it's exactly after Halloween October 31 from the next day it's your -- in horrible shape.
Our New York.
We're not really stressed yet there are a lot of people who are miserable and angry when it's almost like they revel in being miserable and angry isn't -- -- -- to release.
Many years now aren't -- that we work hard play hard here -- Can you argue that.
Yeah that's I think that goes hand and with my point is that we seemed a lot of times New Yorkers seem stressed to those who come in from the outside but having a big part of that is just the fact that.
That's the way people enjoy being.
They enjoy being that high strong you know hit them hard.
And move on and it doesn't bother them you know drop a few F bombs here in there it's just a regular part of their day happens -- we can't -- pleasant seventeen.
Seventeen Washington DC twelve and he believes -- -- in the United States.
It's got to be somewhere it's not in California it's not -- It's only Carmel California where everybody and rich is simply can't write another worry about -- Harris and he's -- -- big cities decent cities ready on Denver Colorado.
-- time I would think that but now Miami.
News that's been asking where is little on the -- is really stress free.
Why would you want to Wear heels on the beach which is sinking and we're here for the bar on the beach and saint Anna -- you can do and that.
There's -- it's I guess tell you right that that does make sense Miami -- guess what.
That's what my -- because we -- seventeen -- and LA I mean San Diego five minute oops yeah I guess I don't know like a lot about it somebody -- Minnesota and I think Minneapolis was actually on it was actually as a city that's not very stressed right now.
Forever but not on the top five Chicago Houston Boston LA San Diego and.
And Diego that's unbelievable like a -- aren't well how many go figure -- in the -- figure out why that is I take a break christened -- -- hit quite.
I later we got movers clay.
Some -- friend's here he's our.
Our resident -- viewed.
We'll be right back.
I'm like -- politics and music.
And I got caught -- That's been that I'm glad -- -- -- got a market is up thirty about thirty points right now we're still over that and that you know that.
101000 mark the UNC we're 101072.
We've not -- this -- slow and steady the last couple days were put them back and forth Christie in this.
-- of a lot of action on you got high notes by about where it was when I left my Mother's Day yet midnight yesterday this pretty much where we rounding to even know we got some good.
Numbers from some good company struggled through my -- real fast because we -- wouldn't come off beyond those numbers.
Young hit a 52 week high playing off the third quarter results of that they reported profit more than tripled year over year.
It's pretty good in everyone.
Right the company -- I still am but that's beside the point.
I mean again I mean I know yes -- -- -- search advertising was down still.
Revenue numbers were flat year over year Carol Bartz -- lover new CEO what the third CO they've had a in four years so.
I'm very optimistic she sold interest in that -- in the Chinese Internet retailer clamped down on costs I mean he never revenue came -- at one point 13 billion it's.
You got divorced now I just walked in the -- you gotta -- Versailles.
-- -- -- -- -- mean I think she might be the right person for the job but they have a big hill to climb she still says.
We're not Google we were different from Google were going to be different from Google the and I months I still think it would -- so.
That's that's just what else that's fair SanDisk another 52 week high.
Came flying in and it swung to third quarter profit on strong product sales and margins we like to hear that this is the Flash Memory maker -- -- little -- -- you couldn't.
Prove they're seeing improving and -- fundamentals that means good stuff going forward.
But I like -- -- strong product -- that means people are buying stuff.
Morgan -- we talked about before with Robert -- posted third quarter profit after three quarters of losses.
This is a second largest investment bank and of course they benefited as we talked about from investment banking and their fixed income sales and trading which again.
Means there's on the -- a lot like Goldman Sachs even number two is -- Texas -- auto parts.
Supplier we've been seeing these companies -- really well -- people marching in their cars they're fixing them.
Even though I I came in but the -- gas in my -- so go figure.
But their margin strengthen profit was up 58%.
Most of their aftermarket auto parts of that I actually.
Beat expectations and they gave good sales what has gone vote yes then.
I'm a funny -- chip we talked about their chip here last week they were on fire that -- again they entered into the strategic partnership.
With -- diabetes research institute to combine efforts so the stock was up 36% earlier today.
Again these lab -- got -- level.
A -- or you gotta Tatum.
Exactly one day eleven the next day eight -- a good 36%.
Not gonna say that -- that mean you know what you you you be careful this is your -- look at that right now here it's 34% easier lottery -- stocks and if you -- a couple extra dollars and play in the lap and then and then do you cash in that lottery ticket when it's up 36% I think you.
And not be prudence might say you do up forty points on the Dow right now pretty good day Clayton Morris is here -- the FOX & Friends Weekend.
I see you've been you were you were fooling around on the that you can't help -- count on you just it is fiction that you cannot stop and I'm going to rehab for this.
It's technology -- I don't you have one we had this counsels -- what is wrong with you at this -- If that's what they sent me -- It is it because you're you're now Blackberry person because there are really two camps there are Blackberry in their iPhone users and Blackberry people.
Almost like the PC people on those commercial right where there's still business -- -- -- to steamy email -- to be text and that's all and are you an iPhone person.
I'm not yet but the only reason why I'm not as because here in the city I found that Verizon were so much better than AT&T if Verizon came out tomorrow and said they went out here in the -- -- I get it tomorrow.
Oh I eighteenth -- and awful and the city.
Why don't you just certain pockets which is not very good but also a lot of leagues you have the of the nails song I like -- keyboard and have announced I do like them like that you like the keyboard you know.
Don't you know I while I watch as he walked in the hall sometimes she will be texting should be walking -- -- and walking into walls and you know watch out.
And she might have more problems using that if you use in an iPhone through.
Right not actually not that that won't be but it's it's the walls but it in all seriousness.
Site -- on.
Then that's it gets a key point though because a lot of these new Google phones and android phones that we're gonna see Molly to manufactures are gonna have a QWERTY keyboards because a lot of people said that.
That was one thing with the palm free if people -- -- -- but we've looked at studies now we see that that is that is not as big of a deal to people when the first generation iPhone came out two years ago we were seeing people complaining about the stickiness of hitting those keys it was not as responsive you type a letter and take a few seconds to pop up it was a little GAT.
-- corrected all of that and so they found that people who have switched from a Blackberry to an iPhone have not had those same problems.
All right your -- you never come back.
Well I mean -- something else comes out I'm excited about some of these different android devices I mean I looked at and also windows six point five mobile.
We saw on the HTC.
HD -- device which only releasing overseas right now a lot of us scratching our heads and wondering why this could be the flagship device for windows -- I can see here in the United States at least for awhile.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Awesome they're great but again it's all comes down -- user experience of the iTunes store and that's why people don't buy a phone for the camera.
We've seen these Droid commercials rolled out in the past few days and one of things are picking on is.
You know I don't how -- -- making for the iPhone I don't have a five megapixel camera and the Droid does I can take pictures in low light.
People aren't buying a phone for the camera now.
They didn't buy the first generation iPhone when it because of its camera and you megapixel camera no one cared.
They -- -- iPhone experience they wanted to be able to jump into the iTunes store have access to the media very simply.
These are the devices can't -- that yet.
And what do we do it apple because every quarter they do seem to give us great numbers they did this past quarter as well.
Well where's the growth gonna come from all we still going to expect Steven Jobs to come out there every year at the that is conference and say.
We've got an unbelievable new product that everybody has the bottom they just seem to be able to do that how long can they keep that up.
-- listen to quarterly earnings call the other day we hear that Steve Jobs -- we've got a lot of great products in the pipeline for 2010 so then one of the questions that was asked of Tim Cook was.
There there -- margins on air -- airfreight and now they're going to be spending this holiday season everyone says -- during the holidays of course you're gonna spend a lot on air freight which is no but this is different.
We're expecting to spend a lot more on -- so what does that mean for November is going to be a larger product a larger TV size in product perhaps apple TV that'll cost more to.
Fly around the world for the holidays.
An early 2010 perhaps this mythical Apple Tablet we keep hearing about and this has a lot of people excited a lot of insider saying look we're gonna see this device early 2010.
That could change could be huge here you know could absolutely be game changer.
But I that's nice of them -- people like me who I'm still -- Boring PC.
User in my house the word is luddite nobody can find that an inning.
-- millions of Blackberry I got an -- and I feel like them in the dark ages.
But the -- if Michael iPhone I got I feel like angled away with it I got exchange -- systems at home that we got to get Max at home and I'm now waiting could this little thing that's supposed to be coming out.
Will be cheaper smaller.
And much more efficient use of space in my house and now I won't do anything until I hear about this.
Are you said about the new line -- we saw this week I mean this is -- had a number people you know he's saying I'm finally switching I was waiting in line next -- switching and one of the great things about the user experience is going to those apple stores and they make the switching so easy for people.
Microsoft trying to answer that with her own stores that they're just want -- whether or not they can.
They had that same experience terribly interesting but.
I don't know this was a gateway drug for me use and an iPhone once you start experiencing.
The OS-X operating system on the iPhone.
And you start seeing how easy it can be.
Then you start to buy one for your parents do other things -- -- using an iPhone -- 75.
He's had trouble all -- other phones except the iPhone he's -- -- text on a regular basis.
So you look at the ease of use then you might wanna start gravitating towards a -- in your home I mean not.
Here's what I did this -- I we -- though is that yet -- did the switch from the PC user the older and stayed.
Blackberry whatever the case may be -- the iPhone is great but then once you get into apple.
Every time you -- they come out with something that's slightly different.
Maybe it's not compatible with old equipment that used the use -- -- a -- charger.
Whether it's an old you know music player allow the BB iPods -- -- -- live pot you put it in your your your music player you're speaker system that doesn't recharge it like it used to.
I think wow there's a lot of there doesn't it.
It does because you're constantly well it doesn't it doesn't because apple people well let's be honest as an apple do we kind of -- they don't yeah I thank.
They don't mind spending the money for the upgrade every year -- and so docking station annoys a lot of people if the docking station is not compatible or doesn't charge but a lot of those these things -- third party made as well beaten a lot of those other you know docking stations that play music.
Sell the upgrade it.
You know people are willing to shell out that -- That happened in me this Christmas I bought the Littleton nanos for my kids yeah MA will.
Play they would not charge.
And I have Bose speaker -- and would not -- and yet my dinosaur mini.
Yes I do have -- I've -- iPod mini.
Yeah -- -- the existence now iPod I don't even know what that is if it if it.
I don't know how to hook up that product name look -- and many if Brady it's mainly it's the size of his -- exactly halted immediately to that and bounds and it hit charge is in my post that amount story.
The new ones -- not that frustrated me.
I'm curious though about the numbers did you guys -- that you guys are so invested in the stock numbers looking at a good jumping up from 1881.
Now 200 are hot hot Paul lets me down nearly touching an all time high in terms of the numbers so.
A lot of people are thinking I've seen analysts across the board of the last couple of days say it's frothing with -- -- -- is getting ahead of itself a little bit here maybe maybe wait -- takes a little bit appalled that I had to that's an all time high right there up up over 3% on the day is it that what is -- debt dominant.
All over Microsoft for example in the PC world in terms of bringing people over more people convert because they do have a huge opportunity -- PC market.
They only have such a small -- -- so much room for growth there the problem though Microsoft is they're not hardware manufactures and so they rely on the software but we did see over in the UK we've already seen Amazon orders for Windows 7 which of course launches on the 22 pre orders.
Outselling Harry Potter for the first time this -- broke all records on Amazon UK's website for for pre orders of Windows 7 so.
Their margins aren't as -- am I wrong I mean they have their their software developer they make software they want you to buy that CD -- in your computer.
It goes to show you how bad this the was this that was so bad anybody has -- now is is clamoring for Windows 7 got a 140%.
Year to date before we go what other products you like -- -- you're you're tech person -- what else do I need to have since now and I have the right product well.
It what you don't looking at some of the holiday obviously some of some of the best gifts for the holidays and yesterday of course -- the big Barnes & Noble.
Will it take on this is of course the Kindle will take on the Kindle at the holiday season they're trying to get it out big question will be in time for Black Friday I think that's going to be a really exciting device because you'll be able to go into a Barnes & Noble store.
Hands on with -- which you cannot do with the Kindle you have to order it.
And very often among the subway if someone comes up to -- -- -- -- -- -- can -- -- it they -- it actually feel what it's like to have a Barnes & Noble store we can go and play with it.
That's pretty exciting I think.
Are going to be huge from Asus some some idea Hewlett-Packard -- we're gonna see some -- tonight featuring Windows 7 I think those are going to be some of the big.
Big I think my kids that -- actually.
And then nano Apple's nano with a video that was released last month.
Early in September is going to be huge this college.
Good to see Clayton thanks -- you guys think they -- from a FOX & Friends Weekend I was expecting a whole.
In my stockings from you now all of a sudden it's looking up and you get your kids.
What do you net.
We're gonna break I'm sorry -- can be generous to an apple made me.
When that work -- -- -- What other that would like everything's -- gift cards.
I've made it very clear to everybody that knows me do not buy me anything but it's unique gift card what you have to -- What if they -- because this thing.
What they were gonna buy you.
Anything positive you are now you're telling everybody is saying hey by the way on the buy anything other than a gift card you have to buy me one of those.
Government holidays -- breath and I act.
I'm glad Latvia Ares hear president and CEO -- don't consulting and stamping and taught them about the gift card business come holiday season and you're not seeing -- -- a very good gift card.
Season coming up are you.
Well actually seeing the holiday season in total being down this year and -- cards as well declining.
From last year probably four -- 5% in their number reasons for that but we definitely see that category although it's done well certainly in the last 45 years and a little bit of a decline this year.
Yeah I think that's -- -- that it's even more of a decline this year than we saw.
Last year -- -- predicting just the holiday season in general to be a decline.
Two straight years I remember last year was a disaster that's certainly can't be good news for retailers hoping for at least a little bit of a rebound.
Now that's right in fact when we get our analysis.
We look at all the variables you can imagine in terms of either the -- to drive holiday spending and when we realize that we were gonna be forecasting a negative.
A year on top of last -- which is also negative we actually went back and look to see if that ever happened before you were right it's never happened before I'm not since the the bureau statistics has been keeping track of holiday spending since the mid sixties so.
You know the number one driver -- unemployment -- we have seventeen million people unemployed another nine under employed.
That is going to be just one of the biggest drivers this year for keeping things flatter frankly down.
Look -- you think things with gift cards one.
And -- putting fifty dollars on gift card -- -- I could probably -- get that sweater on sale somewhere from 35 even thirty dollars so I save myself money.
But for the stores they can't look at its revenue so this real incentive for them to sell gift cards right because they can't look the revenue.
Until the person comes in to actually use the cart.
Now you're exactly right the revenue doesn't get recognized until it's being used and and you know that the two aspects of the card that we're very important was number one it created foot traffic for the buyer of the card.
You go and you purchased the card and you might look around into a little bit of shopping and and it created foot traffic on the other way other -- when the person came in redeem the card.
-- but both both of those patterns are down a little bit and one of the reasons for that is is the move.
That many retailers are doing to go online so you can in -- actively by the card online you can actually email that to somebody.
And then they can go and purchase online so when you've taken a foot traffic element away from it it's gonna have an impact for the retailers but but no you're right that -- gone down.
The other aspect of it that's changed this year -- we think the overall value of the purchase of each card will also be lower so we've we've seen that -- picking up this year.
Todd also from -- says that statistical.
Proof -- standpoint.
How many of these cards go on use -- -- that a lot of people look at that and say well it's a benefit for the retailer right if you sell a -- it and nobody redeem the card.
Now that's right interestingly couple things on that one is they.
We think it's about four to 5% the number does change every year in -- tip of a little bit difficult to track.
But it's in single digit percents but that's a lot when you when you're talking about a 25 billion dollar category.
Now there's some legislation.
That's it it's being proposed out there that wants to put.
Limits on or extend the limits on the expiration dates for these cards as to as much as five years.
-- but the retailers they got today absorb -- cuts both ways because while it's good to extend.
That at some level in and provide some consumer.
Address some consumer concerns the problem is now they think -- the actual number of unused could go higher because.
If nothing else and an expiration date -- around the corner is a good motivation to use it then.
But -- a lot of these cards to if you don't use an after -- at a time they decrease in value.
I know I think I can think of a few different companies that did that that if you after you're you're -- in the car it was.
You know they -- five dollars -- drop what are they doing to prevent that kind of stuff because that's also a deterrent and wanting to give a gift card.
Yeah there's it's and it's a great point there's a gift card association that's been put together by some of the preeminent retailers including Home Depot and best buy and others.
And one of the one of the things they want to do is address things like that also fees associated with using the card.
And other related things because they they want to address consumer concerns one of the issues they came up really for the first time in a big way last year.
Was that some of the stores sharper image Circuit City even restaurants had actually gone out of business.
And and -- consumer was left with the useless card which was obviously a very significant negative so there's that this association groups working to address those issues.
Todd -- you look individually at any particular companies that might have.
The right game plan going into this holiday season whether it's an Amazon in -- online whether it's eBay.
Obviously -- line use things say anything like that that you see as a growing trend this season.
Yet there are a lot of issue -- a lot of opportunities I think that it's interesting to watch this category as a -- as a product category emerging evolve like it.
Like a traditional maturing category of product.
Online as you mentioned eBay people are reselling.
Their cards online.
And and and you may have heard of that with the eBay.
There are actually are companies who are facilitating the use of people buying medical cards another word you can you can provide a medical gift card for somebody that can actually process through -- We think that's creative.
There's also bundling of gift -- -- two or three or four people can get together and purchase a much larger item from somebody or at least provide a much larger gift card.
So we are seeing companies continue to get innovative.
And and obviously it still continues to be.
An important category although.
Again in the holiday spending.
In the holiday spending will be about 450 billion dollars this distillery a small -- that's large but it's still smaller percentage of the total -- I don't I'll say it again to that three people that would actually give me give -- -- -- gift.
Well let me Yang and president CEO -- some consulting thank you so much -- -- and honest -- cut -- -- thanks so much thanks.
It's going to be interesting.
There's a lot at -- there's -- no -- given gift card because you can find the same product probably on sale for cheaper I understand that what how about the.
It's like American Express -- cards are great because you can use in any anywhere within American expresses it is he's right or or like Amazon Amazon the great gift card.
Because again Amazon isn't going anywhere and you can buy whatever you want -- and that's -- much about.
It at the expiration on those if caller asked Libya but even for the kids are things we asked for toys -- -- -- and we put the kind of pile and then like any illegal use one -- two so here -- you it's a great idea because it's kind of a gift that -- -- -- -- you get whatever they want -- seem to multiply.
-- -- -- do you think it's going to -- a great as a guy in the shopping is a nightmare.
For anybody anything gift cards.
Look fabulous for his -- -- -- -- asked if Obama is gonna control cards now.
The legislation and -- -- legislate that house and the senate and back to -- -- back dissent and we're gonna talk every single senator and representative here on fox business.
-- -- -- -- clay.
The caught my -- this morning actually has nothing to do -- business.
Mom has a lot to do -- music or lack thereof billboard's top ten singles chart I notice that today Britney Spears.
Debuted at number one with the -- had not heard this song -- I'm sure it's awful.
On number two of them looked but the -- that we put -- let's look at number five on the on the edge sharp by the way it was run this town -- Rihanna and Kanye West's.
Number four what you say Jason did -- rule low number three.
Bob Miley Cyrus party in the US -- you heard this song I have not -- -- god number two down and show this is Jay Sean featuring.
Lil Wayne this is one of a great.
Snow jobs in music featuring they love to do that that never heard Jay Sean but wants to put featuring Lil Wayne and there I -- -- -- -- -- will wings on it.
If any if any member of the cash money crew was on and I got to hear it and then of course number one Britney Spears there with the -- had not heard the song yet as I said.
Premieres at number one you -- if you could guess that right.
And actually -- and that's why this fall might -- yes.
All the -- -- But the did taxation.
The knowing that I'm going to be did tax out of the while -- for the next thirty years my life but that's what scares me you know I wanna move to Switzerland this.
Because I got this this is these -- the songs that people listen to do.
This is what the future of our country the youth of America -- listen this is their top five.
They're -- to -- someone's gonna take care of us when we need Social Security are older age like this.
A -- but the 110 degrees in the studio that.
-- break a sweat we got to get -- here we come back we got a lot more to talk about.
I think -- -- -- 2004 as a mother today if you gonna break.
Couple of comments from viewers after that last little tirade ones that -- you said it youth yes I am not a part of that demographic.
And and that somebody else bottom Nebraska.
I grew -- listening to Hendrix Joplin -- zeppelin.
You -- nobody on that list that resembled any of the ones on your list so to shame -- my half of them are dead.
-- -- -- -- -- -- -- Oxides in the late sixties and early seventy's they met an early -- that is for sure -- got to move on William La Jeunesse joins us right now.
From LA gonna talk a little bit hated talking about health insurance for years.
William years yet seem that way our car insurance now comes to deploy an actor becomes a -- conversation hasn't.
-- the question is what can mandatory auto insurance teach us about the potential.
Success of mandatory health insurance and here's what we know.
Even though in you can go to jail.
You can lose your car you can lose your license you can get heavily find.
On average nationwide 16% of drivers carry no auto insurance.
From Massachusetts where most people have insurance to New Mexico.
Where one in three drivers don't carry insurance.
Part of it does relate to penalty system for the penalties.
Generally speaking the more compliance you get however.
In this health care bill as were.
Looking at in the baucus bill they reduced the fine from 950 dollars maximum per person.
Down to 250.
In the first year the bill and it only goes to a maximum 750.
So economically many people are going to make the decision number one it doesn't make sense for me take a young person.
Who's 25 years old we had them make make calls here about getting it a policy.
With a 5000 dollar deductible would still run them about a hundred dollars a month.
They're gonna go a fine for 200 bucks that's that's it that's no brainer I'm not gonna get the insurance.
So so auto insurance teaches us number one some people are dead -- they're not gonna by the insurance no matter what number two you have people who.
You know they don't wanna stand in line so unless the health insurance is free they're not gonna do it.
Francis in the -- chip program there's about four to five million children who qualify.
For free medical care but their parents don't bother to go stand line of thought the paperwork to get it.
And then find that finally affordability is an issue.
When unemployment rate goes up the number of people who drop their car insurance goes down what's it gonna tell us a during a recession when the government is already broke.
We're gonna have to subsidize.
More and more people with higher and higher subsidies as they will then need subsidize health insurance.
-- it's what we now.
William -- wanting real quick how much kill bit of this is in this is a huge topic -- health insurance.
Illegal aliens look at -- let's face it New Mexico has -- -- has a much much higher population illegal aliens than Massachusetts maybe that's a big part of as well they don't want.
Know that -- get insurance they got to come out of the woodwork and say look I'm here illegally.
That's true it in in in there in California 18% of the people don't have insurance.
But it's clearly there -- much more than just the illegal alien problem who are not buying insurance.
Now you know how -- how although the federal health care bill that we finally see deals with that.
Which if it does say no.
You know that's it that's.
That's a tough one because you're right if you -- they're gonna still -- -- At the emergency room and -- still get care meaning meaning that our government will not do what it takes to.
To to to ensure compliance which is if you get gangrene you lose your foot.
But I mean you know that's it.
In both health insurance issues and car insurance issues it comes to a lot of it comes down to illegal immigrants if we took care of that problem and might -- a lot of the problems.
Along the way it.
William I know we got to run William -- -- out in LA thank you so much for covering -- this for you and the debate will continue I'm sure.
Veterans have thankfully and I I tell you.
I think that's part of from that -- that they recession show on how to how to take care of immigrants.
Instead of gonna go out to -- Howard out San Francisco CEO practice.
In Iraq now I am.
And you know you were very good writes a tell us about us.
What's your product is doing especially with H1N1 it is basically helping physicians figure out who is most susceptible to H the H1N1 -- Exactly what what the product is on a broad scope is that the right now with the federal mandate for all physicians to adopt electronic health records.
So this means when you go into the office.
The doctor needs to -- -- look.
Chart down what happened to you feel -- send electronic prescriptions.
-- labs electronically.
And also report back to the government on.
On all this data so we provide the service but what's unique about practice fusion is that it's totally free.
Another unique attribute is that we're totally but based in the cloud so.
We recently signed partnership with Salesforce.com.
They're an investor in practice fusion.
And what we're doing is we have all of our data all of our patient data I'm in sales forces cloud in what this means is that.
We have the ability to look across all of our patients within one shot -- report analyzing that data and also the ability -- share that data.
-- around health and human services yes go ahead go ahead with the health and human services to ons are -- health and human services a few weeks ago released the criteria for.
Patients that were high risk for H1N1 we -- in our database armed.
Pulled out all the patients that were high risk and then made that data available to the doctors and all position using the system now has to do.
Is basically run a report.
It shows all the high risk patients -- -- that report to the CDC and they give him the vaccinations at no cost to basically -- -- patience and and given the vaccination.
But I guess people's -- one of their greatest concerns about medical records being available online is privacy it mean but I.
Maybe want your doctor to see your medical records -- -- don't want anybody else to see him out there how these sort of become batted that fear from -- That's a great question so there is there -- security on multiple different levels within a practice a practice can only see on their own data much like when you log in to Gmail you'll only see your email.
And you don't see anyone else's and vice Versa.
Now -- on that and a most practices have their records in paper today.
In -- paper format and what that means is that there you know some could break into the practice and steal that -- someone could be looking for your chart and there's no audit trail.
Of what you who's been looking at your chart.
Now our infrastructure is world class is fully compliant.
And what that means is that.
Whenever someone touches your chart there's an audit trail on -- we're behind Cisco firewalls and redundancy and -- -- through.
You know we have practices that.
Catch on fire you know or -- have catastrophic failure and the next day they're able to access their records via practice -- so it's a security issue.
As well as and availability issued and having it in you know cloud environment solves both of those problems inherently.
It's still a big issue no privacy because I mean you know we put a credit cards online all the time we put our dresses out there -- we put a lot of information on the web.
Is that we have people file their tax returns now via the web is it still -- as big of a concern.
It's still live because in this is the reason why Ryan.
I don't want people we'll listen to me.
If people look at my credit card number that's fine as long as they don't use it if they use it it's against -- law I don't want -- even to look at my medical records.
If I haven't given them permission to first look at my medical records.
So we -- thought on so.
It's it's definitely caramel and our entire model on this very important to the positions it's very important to the patients as well.
Now what's interesting movie industry health care in general on the IT side arm is just you know a decade behind.
The rest of other industries as a whole so.
What's really happening my pain in the marketplace -- New you bake on line for example that that was a really you pragmatic example -- -- salesforce for example has all their data -- -- so my point is is that a lot of industries have really.
I'm pave the way for us to build -- you know bring this into a cloud based environment.
There's a lot of security in place people.
From a consumer standpoint are very comfortable with online banking on companies like mint dot com and all the way up to you Wells Fargo and Bank of America so.
The net is is that it's a huge concern it's Paramount in our model but.
On the industry's at a point in my opinion and technology as well where the data is is one it's safe but two it's also much safer than it would be in a paper environment.
And now I bank online I filed my -- tonight -- I would much rather god forbid you know have to go to the emergency room that might have to be able to pull everything up electronically.
And we talked about also how this is it cost savings for health care are you doing anything -- you talk to anyone about.
You know making it better known to people the results of having medical records online and the cost efficiencies of it.
I'm absolutely it's and that's our core competency so back to your example making the data available that's really in my opinion what the administration's after with the stimulus bill with incentivizing doctors to adopt.
This technology so.
It is about a 195000.
Deaths a year due to medical errors and that's really because the day is not available so let's say you come to me and I'm your primary care physician and I send you to.
Two specialists -- so you have I have been wrong before it.
And we we got to -- -- a few minutes but I and a few seconds but I mean I think that it's a great point you gotta get keep the word out there Ryan Howard CEO practice fusion.
Thanks so much.
They think you got -- with much guys have a great idea thanks Ryan.
-- -- what's the big deal.
I'm scared about that advocates say you know I don't want to -- 10 o'clock in the morning are scared of do nothing -- -- started consuming.
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