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Hi heavy Wednesday welcome -- and live the market is down a little bit today even know we got some good news last night from young brand that's this.
Parents of restaurants like K -- C I mean.
-- affiliate at Taco Bell and that all that I'm not -- -- we were just talking about why people actually.
That's all I'm sorry -- say -- but nevertheless the numbers when you break them down.
Talking no sales -- racquet sales were down in the United States but China up 11%.
-- its tiny very Kentucky fried chicken loaded with that boggles my mind -- Shouldn't bother you -- you remember in pulp fiction the Royale with cheese but after that it.
OK well here's what happens -- fast food restaurants that do it right like mcdonalds and like yum.
You go into China are you going to France says it was a case of the -- makes it with cheese and you.
Segment that population and you figure out that tastes and the customs of the local -- -- and tailor your menu -- that so look what we -- here in the bucket of extra -- might not be what they're ordering.
In Beijing and Shanghai.
I think it's just an irony for women all over America because we are always told to follow the Asian diet to get really really thin and you can't sing.
If they might be -- you might not be eating chicken and you know might be Kentucky Fries bestsellers -- -- -- I finished they're being in the -- the grill you can type I think as the grill now -- driving up which is almost sacrilege but that's that's a great job by yum.
-- able to do it overseas.
-- American brand -- to take it over there really targeted to the local population and young blue numbers away last night after hours.
We have a lot of earnings today already Monsanto before out before that the bell today.
Being earnings expectations cost of doing very well overseas as well at a family dobbs Family Dollar write the dollar to build and also beating expectations as you might expect the national -- -- up lately -- have so we almost have.
The market down right now by the late 44 points it's not too far off its session lows.
You have a market reacting not too favorably to beats in in I sort of look at and say OK is this proof positive now on the day that.
Earnings season begins that expectations are too low and that even though we're gonna see is steady.
Flow of beating on these expectations is not really gonna matter as.
I don't think these are true beats and Dan greenhouse -- military back is here.
To hopefully support my theory because I don't think their QB Dan because there has there's no top line.
At least domestic growth the means so we're not seeing.
Sales at least for -- for -- in the United States will.
-- -- you're touching on the the main theme of this earnings season which is that many people myself included believe that it's about time to start seeing.
Some top line growth that's not to say that we can have equity appreciation.
We're bottom line growth without it but certainly it's at the point where the economy expanded in the third quarter -- -- -- that was a school where retail sales were better than expected on the backs of government stimulus and you would hope to see that this be the quarter in which revenues at its top line growth -- And you haven't really seen that to a convincing degree yet and -- if you drilled out -- specific fashion as you noted that we are talking about before.
Growth here in the United States in these international companies is severely lagging growth overseas and the example used was -- where growth in China was up sales in China were up 11%.
You look at -- today international sales and I'm virtually every metric excluding currency including currency were up overseas were down in the United States or at least -- up.
In the United States and that's.
Going forward an important thing for retail investors to take away in a general sense in that.
-- diversification no longer means industrials and materials and staples and now means the US and China and India and Brazil do you like a heavyweight -- Of all overseas and maybe even I'm I don't necessarily mean developing countries but just the sheer fact of what we saw out of Australia yesterday morning.
No they never even when the recession there they continue to grow.
On that opportunities overseas he got American companies multinationals and mcdonalds of the look at those of the world whatever they're gonna benefit from a weaker dollar gonna benefit from some of these other economies that are growing at a more rapid pace in the United States and is that -- you want to be overweight right now.
Well far be it for me to make a broad generalization like that because that the thing with investing of course is that it's very personal -- depends on your own situation you're on economics on tolerance for risk.
I would say certainly that at a minimum you need considerable exposure.
To overseas markets and that is to say again China Brazil India Western Europe you know where wherever you feel comfortable -- -- -- -- coming from at the same time you can invest you know here in the United States as you mentioned in companies like.
Caterpillar or McDonald's that do.
A lot of business -- not primarily overseas.
And that in terms of the weaker dollar works of their benefit when they bring their euros or there that you want back here in the United States.
And that's probably why then we've seen Tiffany's actually -- analysts upgrading Tiffany's over the last couple days again that's -- overseas compartment of that.
Does that mean -- that companies that strictly.
Sell products here in the United States probably won't come out with good numbers this season.
I don't want to -- Blanket.
That to be the case but I think from an investing standpoint you have to be concerned about domestic companies that sell domestically.
And even more so you have to be concerned about domestic companies that have exposure to the consumer.
Cause any which way -- because any which way you slice it the consumer here in the United States remains weak and consumer spending is tepid at best irrespective of the one month spike that you saw on the backs of government stimulus cash for clunkers.
What do you make of the weak dollar right now you know we sort of had this.
Last year there was I don't know if it was a flight to safety -- the case can be when we had a fear of collapse -- on the dollar got stronger but by and large over the long hall of dollars and weakening.
Continues to weaken this year what do you make of where we stand now on what we're gonna go I think from a technical standpoint if you take a look at the chart of the dollar index that is the trade weighted dollar against them at least six currencies it at a very crucial level here in terms of breaking down it's about having six and change if you break through -- -- from a technical standpoint technicians would tell you that -- it's clear sailing down to seventy.
That very well may be the case at the same time -- -- probably make a case for some near term strength in the dollar to take the other side of the trade here.
You know if if traditionally or theoretically if you were to see growth return here in the United States even in the medium term.
Enough to it to warn investors bringing their dollar and they're -- currencies over here.
Capital flows returned to and I think you could see a modest depreciation of the dollar I think -- you know I'm not the only one making that case on the we're certainly in the minority -- but in the longer term.
You know with the depreciation of the dollar has been something that we've seen it's been slow it's been steady for several years now and as long as it continues in that manner from a freaking out standpoint.
And there's nothing necessarily want to that the same time no country in the history of the universe has prospered with the declining currency and that's the overriding thing.
And actually I wanna get to that the first -- to say Harold -- in and said well said Dan there is no one size fits all portfolio we all at different levels of -- so.
Kudos to Dan from that on.
-- should people in this environment be putting money where you are you in the camp.
Well I know you can't be one -- one size fits all what are you in the -- -- all right right now wherever we are down 19691.
The with a run up we've had since March are you in the camp of -- -- be a little more cautious now are still wanna put.
Money let me say two quick things first the -- point -- thank you very much -- writing is straight and he very well maybe -- I don't know -- seems like a nice guy but.
Long story short.
Lots of people who come on these television shows and say you have to be long here.
Oftentimes there -- mutual fund managers are long only managers are people who benefit.
From having people continuing -- in the market IE and paid to.
To advise people on what I observe things to be so I have no material benefit from my clients or people who listen to me being -- -- being out of the market I just try to be.
As objective as I can it.
Now getting -- your point when I -- in here I think the case can be made at that over the course of the next six months or so until about the middle of 2010.
There are pockets of the of the of the stock market and the economy in which investing will meet you attractive awards.
At the same time with a sixty or 55% rally in the S&P already having occurred.
You can pretty safely say that the bulk of the easy money has been made and if you look historically -- these types of rallies.
They don't -- you know from the bottom they don't go up.
Total 100% or 90% -- 120% and we're ready 60% of the way that so that's not to say that there is an additional appreciation ahead of us sixty you don't -- 60% in the -- -- a 500%.
But with a 60% rally in the bag you can no longer just arbitrarily start buying asset if you look at the fixed income market for instance of treasury -- ten year treasuries got the 320.
-- the spreads on investment grade bonds and even high yield bonds of compressed considerably.
Over the course of the year and this was more left the so called easy money so why believe that there are places to invest the technology sector the consumer staples -- -- -- -- negative correlation.
I like -- pairing of trades of the sector which stocks and sectors.
You have to be a lot more careful than you did.
Six months ago.
A lot of the viewers are totally agree with me saying that that's what I'm saying is correct say they doubt that said 2000 worried I wanna go back to the dollar US said that.
It's been declining for awhile now so as long as it's not.
You know at a crazy dropped -- -- not entirely worried but you know yesterday we had Jim Rogers -- saying.
How much longer is China gonna keep buying our debt if you keeps you know how how much longer can we say we're gonna pay back and we never knew.
How much longer -- -- dollar decline in as you say.
Our country continue to prosper and -- -- have to be some.
A little little worrying you there -- I.
Let me be clear.
I am more than when I say a slow and steady decline and this was overriding theme of Tony presenting my my predecessor.
That as long as the decline is slow and study there's no reason to freak out at the same time we can have the conversation.
About all -- and steady decline being a problem that I totally convinced that if the dollar index which again this is about 76 went to 66 or 56.
Thus implying huge gains for the Euro and such.
That is -- is a big problem because again no country has historically prospered while the currency was depreciating.
With respect to your point about -- -- That was an argument being made.
In November and December and January February march and April may and June July and August and September when in the Chinese -- stop.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Inflation 1215%.
That hasn't materialized yet you look with a treasury auctions we're gonna get another 1 today at 1 o'clock the ten year a reopening of the ten year -- Demand has been.
Very strong did you the treasury has continuously been able to bring its debt to market at favorable rates now.
Should judge Jim -- point an important point.
The caveat to what I just said you've started to see rotation.
In terms of reducing duration what I mean by that they have a overseas governments have apparently.
Started to start started to become more interest -- two year.
And three year debt instruments as opposed to -- -- -- -- cart assets and now -- -- -- general announcing -- absolutely and so this is an ongoing theme that you're seeing play out it is not -- is not -- there will not -- also collapse of the dollar which benefits nobody in the world let me be clear about that everyone is scared to death of a steep decline in the dollar.
But it is an ongoing trend and something that only a return of fiscal sanity.
And growth here in the United States will will bring about the strength -- all day and I got ten seconds we'll keep you up at night what's the one thing you worry about.
-- six the movie is looks -- very scary.
I thought I can't play and what did inflation coming not many times and that does -- keep the -- and a decision thank you -- -- house from military today joining us and getting us the lowdown on the markets which by the way down 37 and -- points -- -- talk about.
Throughout the rest of the show we're gonna talk about what I mean it's not about the about the residue of about health -- of course.
We got a new little gadget for you to maybe keep track of your health and develop prevention although prevention today we're gonna talk about banks -- bank grain.
At the center credit cards I think fitness center responsible lending will be here to talk about your getting.
Consistently raped by your credit card and long gold.
We'll be right back.
Hey welcome back to Fox Business live it is about 1213 on the East Coast the warning to those of you out on the West Coast watch and the Dow down about 37 points right now in the.
The board -- and we're all we're talking about golf.
It's here at home so credible uncle and we're talking about going -- candidate and yet all we were talking about gold until now now only once we're done about god and thankfully David Morgan is here founder of silver and investor dot com that's what I'm saying right silver high an investor dot com in -- people wanna check it out.
David we got gold prices I mean clearly you're cooking you gotta be somewhat optimistic about gold at this level.
-- -- -- this talk about bird 1000 itself that -- pretty consistently stripped down once your recent audit.
And on an inflation adjusted price we're not even nearly all time high speed fifty and generous -- first 1980 at that time he could keep prices today's dollars about -- 300 dollars so.
I think you've got a long way to go -- -- you think 2000.
I don't think 2000 I don't think it's day after tomorrow but I think eventually you -- -- -- -- -- yes.
How much of this how much -- this -- that we're seeing recently is a function of law.
-- -- the secret talks that are not so secret between the Arab nations Japan Russia.
Brazil France and the others about.
The -- the nomination of oil including a baskets which includes gold denominated oil.
Usually some impetus to move the market further yesterday.
There's some question about the reliability of -- peace it was in the totally out.
Or she's be an independent.
And I'm not sure that it's factual or not actually there's -- -- on the website who secures a look at that actually it's very -- -- to both sides and actually got the author of that article from the independent.
-- his case.
So what's outlook overall for these hard medals I mean we got silver we have platinum titanium is in the mix to what should people be looking at these days.
-- that I do believe that the commodity sector is a long -- bull market like Jimmy Rogers believes.
I also believe that the metals primarily the precious metals -- top tier of the entire commodity sector.
Because both those medals silver and gold have been money throughout the ages.
Whenever you have a dollar decline Michael witnessing and it's a global base currency really since this reserve currency.
I think it's no trouble longer term that we can't get through it.
But that is.
The yields higher prices the long term because basically silver and gold are the only thing that you can -- investor.
Outside of the system -- will preserve your wealth.
Silver also has industrial uses a mean and it it because of that may be all things being equal.
And then you look at the performance of both children -- deal like -- right now because of where it is relative to gold in the fact that it does have diseases.
Absolutely it's that's what got us our company our company on the NYSE and that's -- baskets -- little room.
Shares because the industrial component -- about 54% of the market better than -- -- -- markets over.
Is industrial usage so that constantly -- regardless of the economy so early when things slow down there's less -- but overall -- consistent.
And then on top of that you have -- doesn't demand either good times or bad times -- got a pretty good -- for silver I think it's underdog role in -- boulder.
As a way to play this do you like the ETFs GLD and -- -- V.
To play these two is a way to get an investment that you -- buying -- -- stock exchange yet the same time as the underlying.
As its value.
Why are we consistent here I think as long as you got the physical metal that you need for your personal.
Well being or sleeping at night so to speak and if you want to move into the into the -- is -- your choice.
I think they've done more good for the what -- -- -- you know the medals as an investment vehicle than anything else that's come along to our.
Did I got a question from a reader he's wondering about Russia's depletion of palladium palladium also -- hot metal these days so what happens in that instance.
Who can shoot him -- the fierce battles on the planet.
And we've already seen palladium go from the 200 -- over 211100.
Dollars one time.
Recently that's a very thin marketed very tight market certainly if Russia does play a very big influence -- there all the other major palladium markets in Montana the Stillwater mine.
So are movies because who -- really good markets the price move around a great deal but certainly this thesis is correct.
And Russia's going to not producing a mouse it certainly.
-- you'll higher prices actually.
We dollar -- stronger commodities gold oil is up we've seen almost -- direct inverse correlation here but the best you can even though you go back.
However far back you -- -- go will that continue.
And at some point time does that correlation break down a little bit in your mind.
Well broken down in the -- I mean it China had a paper money system eight times and it -- at times I think eventually.
There's going to be some type of yeah you know maybe god -- for the queen Victoria and they're gonna come up some type books replacement for the dollar.
What we've seen that the mainstream press us articles written in the independent -- -- so I think it's longer term.
Also believe it but this is the dollar decline rather -- I don't think there's going to be hard crashing the dollar nobody wants edit you previous guest said.
But there's too much -- interest on a global basis for the dollar to maintain some kind of strain.
Regardless of the overall premise that it is gonna decline -- -- David we have a new record today for gold 1049.
Dollars and seventy cents this is a new record this seems to be on -- care.
Kwame skeptical Kwame -- nervous investor but I know you know worried that this is just.
Pop -- -- a lot of momentum trading on this you think there's any backing to this.
Okay proposal how it's it's a normal lives at all.
-- Eric Holder to show so we probably I would agree with you I think we can see maybe 1062 or so.
Of that commercial interest which really are correct.
Most of the time in the futures markets because markets these are the producers the message was short bull market right now I do believe we're probably minister summed -- correctional -- to slow the house -- -- we don't know yet but are they didn't when you're gonna short term basis we'll probably getting overbought here.
You know they say that when.
-- cab driver or your mom and they like that's an -- by gold that's when you know it's over I -- -- think we're getting close -- people lot of people are talking about owning gold.
Q my -- that are with me as far as where we are right now and -- -- that -- -- somewhat bearish at this juncture.
Yeah he also -- tonne of TV commercials are better at every time he tendency -- you got somebody else.
We want to buy your -- just put in an envelope senate does we'll send you Jack you'll get there a couple of weeks that also makes me nervous because then if you think boy everybody.
Is his way to bearish on this thing in and gold.
Let me if I'm wrong given gold has a tendency swing fairly violently up or down in and have some pretty steep cliffs and -- not -- them out wrong on that.
Lose the that's pretty good ball -- so personal and really fast massive volatility there's so much -- much smaller markets so.
Good luck let's -- show.
But the nine elevenths situation -- -- -- gold surged 7% to one day and silver surged 11% the same day.
If you go back about two weeks after the 9/11 silver settled back down to -- started -- go off if they golf or 5% so these medals can't move rather rapidly depending on the circumstances.
It was much more flexible it's over is that they do both -- rather rapidly structure.
-- to tell everyone.
Arts when he anchors here data McDowell didn't send her gold in.
You know and got ended -- just to see how much they would give her back and I think she ended up with like 25 cents on the dollar.
So be very careful and very we area that step out there.
Middle school programs are not your benefit however -- -- doesn't actually broken that if you don't want you know what to do that certainly can -- you know what you're not gonna get local press laboratory.
My accent is bad enough and I did.
Spitzer I guess thanks David we appreciate it good to Syria.
Refute David Morgan founders silver investor dot com I don't know wouldn't date -- did that just to see it was it can't take all my goal and I very much schools -- went out she bought some things that she paid retail and then she turned it and.
And they sent it back into the flat on and that she opened the envelope to see what she got and it was I think -- -- like twenty presence on the college expenses.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I don't come out of her gold nugget ring you know these that -- -- that.
Eighties and all the words that gold nugget -- machines I'm sure I could probably come up like a thousand dollars worth of -- bad -- -- change a question.
T ball that was real thing about that.
That's up and that wasn't really real gold was it in around mister t.'s back maybe at first it wasn't when he -- big time.
After the Rockingham and that a minus -- tax.
Research or got to take a break thanks to that -- in the break what I.
A lot more on this team an -- on health care and we've got to talk about it curry station.
And -- do you think these -- he sent me season people off.
It is looming threats.
But he's still look for another gold rush.
You know going in the hills of Colorado and California panning for gold that ever done that -- panned for gold.
We spent hours sifting through silt to try and find that you tiny little exciting was that golden it's like pyrite personally -- and I -- why would anybody do that.
It's like being nature you know in the outdoors added -- that.
Adds that in heels who could really step in the stream in heels on Iraqi -- -- the maneuver Alitalia afloat against stock exchange -- at Allegiant penalties joins us right now.
Nicole you want a -- person who are are you more -- -- when it comes time to jewelry and really don't.
Doing it -- but you love with which direction you go their gold platinum you Wear pearls what does it all -- Let's say who sit complain.
I would take that long.
You'll find what I'm not want on it.
I mean why complain -- capable is beautiful girls are being involved and stand.
I I actually love Hillary and I think that they'll never have enough.
That will -- you should I don't know I think.
That didn't include a golden novel opens and its CEO.
I mean why not any copper mine actually sell jewelry and he had you know he felt like hoop -- and and that he needed to explain to his clients why -- gold fluctuate the way it does.
Why these simple goal hearings aren't lucky they are because you know people who thought he'd been cooler there in -- does that none this night wearing black.
That -- is look still don't pay any illness.
I can -- market was down thirty employees good today.
Threatening and 9700.
And it look at the the big -- I -- composite.
Moving back and forth back at fourteen positive and negative territory the other indices moved into the green for a short time.
Back in the red but certainly this is one of those sideways action days.
Did you have pulled the commodity itself.
-- -- the -- getting that right now it.
For a -- out -- both stocks are higher but certainly.
Not like yesterday yesterday that was built back up 6% whereas now they're gaining half a percent -- 1%.
-- that the momentum for gold.
Has slowed down -- felt in the green on the last BankAmerica has been leading the Dow Jones Industrial Average now we have it narrowed down to K note to possible to get your place.
Ken Lewis that you -- thinking of the financial getting -- JPMorgan and the greens Goldman Sachs hit new 52 week high today.
Approaching 190s for the financial.
Well retailers doing well on the field off the off court.
Obligated retail sales numbers and today after the power Powell -- -- the unofficial official start of earnings season that was certainly winning the battle we want the more summer like -- Franklin the Franklin company saying that he's baffled.
This market where this and then run up that we had had.
Where to put the money I think and the -- of the sentiment of all the haters that we talked to no clear direction as to which way this market goes because you have.
The fund managers -- the -- -- fund managers.
-- -- money and they're sitting there they don't wanna take it out take the capital gains that they have.
They may felt far you don't want to -- any further rally it seems that they don't wanna commit more capital of Baghdad this week and you know I think a lot of it will depend on -- -- to -- We'll be getting Goldman and Bank of America and JPMorgan -- That would be something very interesting to follow as well.
-- and can -- me tremendously when a guy like Jeff Frankel was pretty much called a lot of what we've seen best art doesn't know what to do that doesn't bode well for the -- at home.
It gets confused and didn't know what ails us -- -- don't know what to do.
I think I think that people are very much in the weight because of the traders are waiting -- -- I mean I would say that but they invite their client did you wait and see.
Wait -- -- which -- this good way to -- digest these earnings as they come in regarding media group.
The jobs number that I have that number -- -- some good news there to have gotten some of our economic reports I think a lot of it now will be contingent upon.
The third quarter numbers and how they fare in the financials in particular.
Which everybody is really waiting to see some.
Some better numbers and that certainly what we are focusing on at this time.
The dollar is the other part of it -- -- -- you know some of the major trading captain and certainly that's certainly in Maine that dean over the last 48 hours people -- -- They're a little bit stupid so they're not cool and felt that marriage because they don't know what they're -- what it.
Real value and you know the dollar continues to hold back so that's something that's also an underlying situation that we're watching as well.
Article thanks for the update would challenge you later and call and you let you know and this holiday season he'll take yeah -- -- could play.
-- -- -- Again thanks Nicole -- penalties out of -- stock exchange were down 33.
Point 86 points right now on the Dow Jones talk a little bit about executive pay right now Don Dell's founder and president the delves group.
From Chicago Don welcome to show.
Thank you very much -- what do you make of the latest report on these are can find birds.
A plan to -- we already have -- bonuses in check now wants to say salary.
Cash salary and turn it into.
Stock options for the longer term for these executives at these seven companies receiving exceptional assistance what do you make of that plan.
Well we understand it -- it's been reported as just salary plus stock that you get to keep after say five years.
And basically that's just paid to stick around its -- keep your feet under your desk.
-- my -- remuneration for respiration and there's -- pay for performance involved and that's there's no pay.
Two it didn't -- advise anybody to actually turned his -- around.
-- it isn't but if he turned the company around and you realize stock appreciation and after the five years mean isn't that the incentive.
That that its offer short term heavy risk taking.
One quarter that -- sort of break the -- out of the quarter by quarter mentality.
While there is some argument that that the other stock -- would go up so they would make money on the stock going up.
But if the stock price doesn't go off for a performs poorly it.
There's still get to keep the stock if it's not this is not taking advantage.
The incentives in the capitalist system.
If it wouldn't be worth it if somebody could actually turn around General Motors or -- helps some of these yeah they're they're very cut coming very very.
Difficult situations they're in terrible shape we -- very talented people to -- and with a lot of creativity and a lot of renovation and help turn them around I don't have any problem Sony makes a lot of money if they can do that.
Right and I think that's a man that was what party your point is that there's no motivation.
To -- to make money if -- pay is capped.
But I will say this.
Based on history.
These companies will figure out ways around this I mean who's kidding -- -- every regulation DC makes Wall Street Smart enough to find a way around it and find the one loophole that's gonna make their money at the end of the day.
There may be throw but my concern is that if this pay -- -- like does that you know we're not gonna attract the best and the brightest we're gonna attract.
Who are given didn't have the incentive to do what needs to be done it this is a very difficult for the challenges.
And we need great people to do it -- and I again.
If we spend.
Whatever it is a hundred million dollars for.
Fired -- Why he's not done a hundred million dollars for a great executive team to come in and really do great things that this company.
It's -- I don't know problem with that said all along my favorite list of stats of all time on the stats guy and sports -- -- guy in 1980.
The average CEO of large companies in America made 42 times what the average worker made.
It was 364.
Times -- as much worse than that in 2005 and it was by the worst.
Don isn't it -- hand here isn't it out of whack and we lost our.
Our sense of reality today how much this sea suite executives are being paid.
Vs the rest of America.
Yes we -- out.
That's there's no question that executive pay has gotten out of control.
And that we went way too far in one direction the terms -- giving people.
Huge incentives to take too much -- that is true.
But this plan if it's what it's been reported goes -- 180 degrees in the other direction so there's no pay for performance.
And there's some ground in the middle where we actually can set goals for -- for these executive teams the government could set goals.
There will describe how the companies will be turned around returning to profitability great -- -- great products and for that I think we should be willing to pay people.
They approve the new CEO of AIG's pay packets.
Ten point five million annual pay package plus four million in stock options for our Robert Benton -- -- to come in and do exactly what you're saying.
-- -- Smart man.
And to think this company that was approved what -- coming on the other side there I mean hey hey did the worst of the law and yet we're given this guy very very nice salary.
You know we were given -- very very nice salary and very very nice stock and again I would tell you there's no particular and -- of and that.
Is getting -- up a lot of money.
That he's gonna get regardless of other company performs and I have a real serious problem with that.
Buy dot how do we incentivized then the new CEO of Bank of America Ken Lewis is going to be replaced year end -- CEOs gonna come in.
How do we put together a package if it isn't.
You know it's a just stock that's gonna sit there for five years whatever the case may be what is the incentive for that person that -- Bank of America around.
Well let's put some stock and some cash.
On some actual real goals.
This you know this isn't rocket -- we're talking about returning our company to profitability.
Returning a sound balance sheet getting a stock to perform at a reasonable rate.
I think we can define -- -- for these organizations.
And -- some money to that success.
That the money can be out there -- three to five years but there's got to be some significant potential upside -- -- some real goals that define success for these organizations.
And -- that the money money money.
Pay me -- at the end of the year if I do my job dump Amy I don't but -- me if I do I mean that's how this system.
Has risen from the ranks at Phoenix came out of -- at all because of the money that was winning at the end of the tunnel and now you're not going to be there.
The -- this is a capitalist system people work for money people are harder for more money people take breaths.
We started putting a bad name on the word rest.
In you risk as essential to the functioning capitalist system it's essential to turning these companies around.
Risk creativity innovation that's got to be done in the right amounts in the right direction.
But I don't think we should be -- -- afraid to pay people to take risks in the right direction.
And do creative things good that war would be required to turn this -- around.
Don thanks a lot so we appreciate it good talking within.
-- -- thank you -- Don -- hitting us up to date on what's going -- pays -- Kenneth Feinberg and his ideas -- of course founder and president of -- analyst Elizabeth -- seriously saying something and some states are -- is gonna go through on this the end of that about it quietly -- to be very -- to see what happens.
When they weren't a quick break we'll get back we're gonna talk about those overdraft fees that you charge of the union -- -- it happens.
Welcome back to foxbusiness.com.
Live just wanna make the point here.
-- Jay wanted to know this can't see have a picture of the kernel or the chairman on the bucket when you get a bucket of chicken is it.
Now in a white suit and the little little little skinny bone -- time around his neck the -- by the way was a real person and he wasn't a -- life.
Like with you know the eagle on the show on the shoulder pads or what have you but he.
That the colonel Lincoln sucked I guess is it is a term of respect I think -- and he was -- -- when he -- -- the original -- very very secretive -- -- -- -- but I don't know if you get a bucket of chicken and chairman Mao was on the bucket with them might -- and I doubt that happens.
Kathleen -- from the Center for Responsible Lending and they.
Whether you think the chairman is on the bucket of chicken KFC -- that in your realm of understanding.
Bank overdrafts though that is what you know about and that's what we're gonna talk about.
At a hand aren't they right now in terms but just the dollar amount but it -- how banks or administrator in these overdrafts on day.
Right -- that's really that's the issue here.
We think that these things should people when they don't have enough money in their account and they're using their debit card it should be denied at the point of of the transaction that the ATM machine and a point of sale.
And at at the very least people should be asked at that point and they want to continue in their foreign car.
What the bank's -- -- feed but in fact is an interest.
-- being charged on what amounts to alone when your overdraft discovered it's really alone -- -- API is some.
Consumers can compares to -- But incidents -- overdraft if I overdraft it's my fault.
I'm I didn't have enough money my -- I go to buy something.
I extensively should be charged a fee if I want that transaction to go through so they're not if you -- if you want to.
To go through that's a big -- and -- questioned the fact is most people are enrolled automatically.
In these accounts they.
And they don't understand that the terms of it they'd be there automatically rolls and then they learn that that's what's happened.
And some banks won't -- two.
Get it cheaper -- they don't tell the people up front that they can get a cheaper.
Less expensive alternative way to cover -- over -- So so -- of the banks and rolling them yet in the fact is your financial institution should not be at every turn.
-- -- rolling you automatically in the most expensive options they should be.
Thank you you're the customer here are your options and here's what they costs and this is -- cheaper alternative they should not be rolling people automatically and and and a -- in the back with software that automatically triggers as the maximum number of overdrafts.
My question is that's just -- I know we're talking about we talk about small -- Or -- not at all because I think.
This is a big complaint about -- -- -- that when you sign a document for one thing you know you suddenly realized I it is small print but it.
-- -- -- -- -- But it it's a whole long list of things they -- suddenly.
Somewhere embedded in there you have agreed with that signature that you are by opening your account that you're gonna have this.
The most expensive.
And why why why tell me why should you a fee if they do cover the -- why would they counted as of yet not -- -- interest -- They just don't -- to have to tell people what an outrageous triple quadruple digit interest rate is being charged as a possible one point one.
Issue that I have is.
Requiring that overdraft fees the quote reasonable and proportional to the actual cost of the financial institution.
It's to me I thought should we require Exxon to charge.
Gas prices -- down that are reasonable and proportionate to the actual cost of explore laughingly -- drilling and refining.
The -- now but actually see at times when oil prices spiked up and there have actually been government investigations.
But both sides of the aisle into -- bad.
You know everyone knows everything price gouging and reasonable -- return.
And for something is essential as your bank account or transportation.
It is reasonable to expect that that these charges should be reasonable and not eight and first of all.
Again they should be stated is an interest right.
And it should bear some relationship.
To the company's cost of providing it let me Kathleen didn't -- out -- person on a fixed income.
Is is buying something for a few dollars and is charged thirty what I -- 39 dollars listen.
If they can't understand fine print I understand -- elderly person might not read through an entire document before signing it.
No one's forcing you to use a debit card use cash keep your cash Johnny -- cash.
They'll use a credit card that's the thing a bank should be able to charge whatever they want if you don't like using -- America go down the street is BBC you don't like and a.
Can't put down the street -- at all offered you can't go down the street I -- -- I've heard this for years.
For -- can't get on the street and find someone who offers an alternative to be really hard to get -- -- -- -- in the mail about -- and competitive now wait now wait in the last year there is a major bank who has suddenly decided to do the right thing and does decline at the point of sale.
When someone is going to go over the I again this is something that banks claimed they for years they couldn't do.
Out and now suddenly there -- -- in large bank was doing the right thing and you notice.
In recent weeks a lot of banks -- -- and -- we're gonna run and our policies over it may -- they were a little onerous and not going to mean even they are admitting it.
Although we don't think what they've -- is.
I knocked it it's not enough it comes too late and it's only coming because the spotlight is on -- We'll -- -- zoning -- on they were pushed into that direction I do agree with you mean I think it's good at Bank of America's coming -- saying -- there's sand.
And there's sort of the of some of these banks are propping themselves up and separate themselves and that.
They -- -- bank and Citibank that does is doing the right thing but.
And then I had to sign on as well reason it's free market -- you know -- It would hate it when it marketed that they actually declined that the point of sale -- -- -- the answer here Kathleen what's the answer because the the other day we talked about the consumer financial protection agency to -- -- So will pull over everybody and impressive I wasn't -- well over -- -- well that's -- would you consider.
And you can't you have got up at a red light so that other people that is I don't run into people and heard some -- I look at swooping.
Asking you then what's the answer to all this bank these bank overdraft fees that are potentially.
Being -- of people of ought to -- without them knowing is it this Center for Responsible Lending getting involved is it more rules and regulations over these banks.
What do you propose is that really what we week.
Think that that bank should go back to what they did is most banks -- as recently as 2004.
And do what this major bank is doing in decline at the point of sale.
If -- over drafting because don't forget debit cards were supposed to be a cash -- supposed to be.
This league the -- a real time transaction CU you should be denied it all are if it at the very least.
Given the chance to opt out and not be charged with me.
That's only are you shouldn't be enrolled automatically you should be ask if you want it.
I you should be denied at the point of sale.
And at an award given the option what do you want to continue.
That just seems there that there be the reason banks don't wanna do that is they know and our survey show that most people.
Would decline this service at that price they said they say that they want.
We'll -- five dollars is a big hit but banks collected about 2.4 billion dollars in.
Teens in 2008 you had a tough fight here to come down and clamped down on them and all that with all that money that they will pretend that you're.
-- -- -- might say yeah I'm just saying they sell my my -- and he's not an audience kind of circular and any minute to capitalist society and they could charge essentially whatever they want to chris' point if I'm not happy about it.
I go somewhere outs and these guys -- make an amount he thanks much like the airline to make it up fees with baggage charge -- I step.
When we got to tell you don't -- lose yet.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I -- -- when it's a quick break right or not into a market moves you're not.
We think that -- -- OK let's do that because there are plenty of them right now we're down 37 points on the -- we've got -- going up we've got -- going down when you look at.
Very sick I love these little -- you know these Biotech companies jumped 37% earlier today actually -- they got an exclusive license to patents.
Four this glucose sensing microchip for diabetes patients stocks on -- terror today.
And then -- get again back to the retail section FBR raises its price tag target on Talbots tablets off to the races we talked about Costco earlier.
Fiscal fourth quarter earnings down 6%.
We got weak sales kills me but they beat estimates of the stock is up.
Helena -- I love this this is like that company that makes curling irons well yeah I'm an awesome.
Well people are -- there's fun these days are -- her -- hair.
Because apparently stopped doing very well up 8% in the quarter earnings to.
-- -- on the -- But again this is lower overhead and cost cutting but nevertheless it's its fiscal second quarter earnings were up 50%.
And finally check out AirTran it's getting clobbered today because it is offering.
-- it's trying to get some debt financing any time -- it comes to market to raise money they get clobbered.
With stock it's delusion debt financing it just makes people worry.
What you gonna do with the money said screw things up yet again -- -- down 18% again when they're trying to sell that.
That nevertheless -- we're -- thirty some percent we have some decent stocks that were.
Rock and Rome's morning.
By Wednesday could break me come back Adam Shapiro is gonna join -- talk a -- -- Amazon Amazon's cutting the price of the Kindle and I don't -- -- It will buy it and -- -- -- pretty new product from.
Who already -- the price.
-- hailed from Ohio best comment of the day where is lost it on silent about the -- Hey welcome back to FBN live into this level Christians yes me to -- -- -- start talking about curling -- Adam Shapiro here now to talk about the Kindle and how it's lowering its price -- I -- -- flooring to is it really such a thing about mixing I'm gonna keep shrinking like the president handled in this it's it's up about 3% today -- low price of the -- this is this.
Ever coming down and it periodically grown up table -- -- -- in -- a up.
They need to lower the price yes they do a lot to do and that there's a catch here OK we've got to -- that -- talking about her first there's the Kindle that you and I would by the United States -- was 299 dollars it's -- 259 dollars and they're competing with Sony.
The Sony Reader you can get.
You get any reader from a 199 dollars at -- 300 dollars so they've had to fight against Sony and Sony is also selling your readers worldwide.
They also announcing an Amazon today he got the 259 can they get in the states -- get through to 79.
You Kindle with the international access.
So so here's the hypothetical let's -- about the 259 dollar Kindle.
And you live in buffalo and then you cross -- -- -- called the freedom bridge and -- -- in Canada you Kindle will work.
If you've already downloaded stuff.
But -- you have the the newspaper option and you wanna read the new York times of the New York Post or whatever while working Canada.
You need the international options that's 279 that'll work.
At any time for the -- -- this well off for -- with the Internet this is the crux of the matter here.
When -- -- this screens of VHS -- beta Max how we had a beta Max and he does my dad told Super Bowl tickets and we had a beta Max big mistake.
But that isn't this the sort of -- at some point on we gotta get some type of content standards station across the platforms because.
You've you've got all these commonalities -- come out today do we need some -- -- -- standardized -- Now now in making it lets -- do that.
In the digital world now you don't I don't think you need standardization in the in the world because look.
Digital numbers that the ones and zeros what I'm doing is the chair of privately that -- blood on the digital world please sir can I have another.
You know in the digital world.
You know but what why -- -- -- sensation standardized when you read it.
The choice is would that the functionality which wanna use -- it.
With the Kindle right now you get 200000 English language book should get 85 magazines.
-- -- the Europeans are really coming on happy there there's this thing called the cooler over in the UK -- which sells for less than the Kindle and you know it is it's all about how many books can get downloaded.
What kind of newspapers can get it's a good -- world wakes up and I calculate.
-- box my aunt who asked not an exit yet out of a wild one -- -- -- my thought is of course you want and everybody there.
Of people basically you know business travelers and things like that that this would appeal to but for twenty dollars the one or two times a year you go to Europe it's worth it.
-- I could do it -- Canada Mexico but here's the other part to get.
You want to be able to read say and I kept ID and not when I was on the -- in on the -- show a talk about how you silent in Madrid at one point and el -- is one of the papers of their big paper.
You can get help -- -- on the -- but only the English language edition.
So you would think -- I thought.
It -- I get international edition Nike go to Spain one day and I can read -- -- in Spanish no.
Only the English language version.
A foreign language newspaper so they're still developing the software that's going to allow you to read did the foreign language papers in the actual native language.
They won't by the way Amazon will not say how many of the -- they've sold since -- percent of the Myers.
Haven't they won't say who's buying on and what I want to know you know if -- was an option for nor out there I'd want to know.
What are people actually accessing on the Kendall what are they buying what titles are they buying what they downloading and -- papers and -- by.
That kind of stuff can be very valuable pocono and Amazon is building this database on its users and what they actually username.
And that's can be very valuable to them in the future.
I'd say you I read an article earlier that -- still not seeing it on the subways and some dancing like no I don't think so would I pick it all the time -- you know what I see on menus and I don't think this is this.
-- -- -- He's that I think it's as I listen like tight.
I love books I like looking at you know at home delivered.
Political the bookshelf that all the books on -- and -- on behalf Booker.
I only do -- however -- if I don't like the -- -- get halfway and to heck with it felt like seeing it's up there right.
With the -- you don't get that that you know was.
The things darn cool and we loved action yet we do I mean I was thinking this is the magic number two and I had I have a source on the make tough case that I talk to every day.
And I I told this person about -- -- -- on the Kindle.
And this source said to me you know the drop in the price it's getting tempting I can't resist -- -- So I think a lot of people they think that price -- -- -- 260 bucks on dinner -- our citizenry -- That's as that's has made -- -- beats a little -- -- -- -- You hear talk about ready to talk about the orange crop and I got a tough thing that happened I gotta tell you I think you come on it's it will be an interesting purchase it probably -- I've got deeper job -- the -- -- even more analyst Pat White.
You think you think Sony although Sony by the way Sony if you're watching -- -- -- my phone calls and my emails why you letting Amazon have been getting all there we'll obviously.
-- -- -- -- -- -- -- -- -- -- -- But dropped the -- Hey welcome back to Fox Business lagged it is we get that Axl at like seven minutes and that the mountain West Coast good morning to those you on the East Coast Taiwanese coast according to the US on the West Coast.
I we're talking about fitness now it's -- talk about all day long so.
Thankfully -- -- CEO of -- health and wellness is here to talk about this great new product.
They're basically tracks what you do you tell us about it.
Thank you very much for me over here Paul Phillips back live there's the program the solution that is making -- physically more active.
And a program is about three components.
It's about the device the -- contractually or activity.
Translated into calories.
The second part of the solution is -- to put it into your PC and it transfers all debate.
To your PC and they can get disability or all the activity that you've done over debate in by our by mean it.
And the third part which is the fun part -- -- personal coaching.
That support you to meet their goals and objectives.
Excuse reporting we -- with him.
You hate lazy bum get -- -- but other couch.
It didn't miss that ended at exactly.
I did not Clinton if it comes to the it direction that you want as a customer we -- coach.
So we leave the coaching part very much functional -- Interaction that are -- where we want how much of some of them like eventually them are basically on their own.
And I really competes with was the -- Because the monitor also shows you -- today by the hour how far you are in your calorie activity do community and we -- great for the day.
At any point in time this field for.
-- -- don't have time to really set forth and put out I'm gonna go to the gym for an hour and a half this day the gym for an hour and a half on this day five days a week whatever the case may be.
Does this give you the suggestion that says okay we've looked at what you've done over the last two weeks based on that.
You could really make an improvement.
In your lifestyle by making a little change here or a little change there which -- will whatever you did last Tuesday when you walk the extra on the -- to -- -- back.
Do they have three days a week and that'll make a huge change -- is it sort of been letting what people say that citizens say.
I can't change my life I don't want to completely change my -- -- of the -- of tweak it a little bit to make it much better.
Yes that's exactly what -- life is about night -- is about making every step count every single movement every small adjustment to your daily life.
He's making a difference and we see that it works because only -- the time if you make these small adjustments you actually have a sustainable solution to become more active.
So we really enjoy and should support people going to the gym.
Having work out take a run.
The next -- that there are many hours on the day that people are sedentary.
-- -- and we really want to give the feasibility and the encouragement.
To step up.
And effectively move throughout the day.
C send people regular emails all day long telling them about their privacy just keeping in front of their mind actually.
That you've been sitting too long get up and move.
Yet it's all based on.
The behavioral change methodology that is built into our -- -- some solutions.
And applicable to -- actually helps you to make small steps at a time.
So we -- don't -- if they issue on a daily hourly minute by minute basis skip moving into this and this we give you the advice -- time to make small changes.
And exchanges are.
Take about a couple of -- -- -- for your colleagues go out for doing lunch take a phone call by walking.
Many of us use mobile phones there's no reasonable to walk.
While you make a -- and stand up meetings -- -- meetings take a look less time because people get to -- point drew quick and and and that'll helps to burn to a television to make a more active.
This is part of you know a new venture the new wellness solutions of -- is coming out with and did you get corporate buying for this because I could see.
Today -- healthy health care.
-- the departments but you know human resource departments of large companies.
Getting this for all their employees and -- the cup competitions and things like that using this and -- had talks with about that.
Yes we have in the last three months engaged to his.
-- companies in the US.
And we get an enormous -- reforms we have about -- of the fortune 500 companies probably in the trial.
-- -- -- And over areas and to -- -- the and and -- positive about it and we have some companies that are moving up to the next step which is actually deploy that into their senior management teams.
Because it's all about the change in their culture and strategy to become.
More active and more healthier and they see bill moos has been the physical activity as being the -- -- us how much does this cost.
That is it for the first four months four individual who -- it's -- and I'm bureau including the amount handle it include the coaching.
Than divides and access to -- -- -- -- -- and after that Istanbul from -- the envelope amongst equals 233 cents the day.
For your -- Program solution to become a more active person and to work on the well -- term and short from health and fitness.
Cost of the stamp and -- they get it from the let's say yes from web sites and nine and for the first four months ten dollars a month after.
And they can get from the lips and if we should -- we should start to look at the end live contest.
-- -- -- -- as soon.
-- Chad when our viewers asks can you make a shock collar for people before they go and vote -- It has to be the next thing you -- -- as far as will be good for our health moving forward prevention.
Thanks Erik the decision temperament and how CEO of -- health and wellness again website if you go to Philips dot com forward slash direct -- that's one word or.
That need to be -- -- -- life dot Philips dot com.
In uncle from the.
I would be -- -- know how little I moved during the day you know I better than -- out why worked out I've worked out hard really to solid hour and and the rest of my day becomes.
Really -- you you see what the you don't realize you're chasing after kids all day long and that's got to keep your heart rate up while effective -- I don't taste anymore I just you know make my microphone can get it this -- this.
But that's enough to put the fear of god into the kids they don't might go -- Yet -- to see god all markets down 24 points right now.
So we've really sort of been snubbed skating along here about down 2030 points all day long do you -- the flight back -- the -- really order the downside a lot of earnings and really gets started tonight without color.
Just gonna lose money but that officially gets us going forth.
Fourth -- fourth quarter loss in a row from Alcoa probably and the -- -- ever to sit on the sidelines wait and see at this point so maybe what they wait to see that's like CIA not paying to -- you know top line growth and then I don't know what hold onto your money until we.
We figure you.
It was senior class have a great day for them -- one.
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