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The CIT news we've tried our icon coming in potentially gonna save this guy eaten a manufacturer actually beating -- -- its own expectations -- just updated a month ago and that's stocks -- -- actually newspapers some signs of life here a lot of concern about that industry over the past year they're up today -- -- regional bank.
Doing OK on earnings but they're still settings -- a lot of Catholic concerns about consumer loans going boards Hasbro's surprised me.
Transformers should have been the biggest surprise there but you've got a future in eye catching but that's what the toy stocks are not doing that great Mattel didn't do that great the other -- barbie's got competition out there now but has president transformers GI Joseph and the -- stuff so they're sort of getting a lot of the -- I think that's what they're winning the -- times.
Well and if Mattel about switching -- -- let's get and if -- keeps making Barbie look like -- look at.
Who's gonna -- -- -- -- mean you can buy her for your little girl.
I think we are moving on out to Chicago time that windmill president of the minus button willow wouldn't we have -- talent rich.
Oh barrels and Richardson down in -- -- -- -- the hot news.
How how can I possibly want to skip over you know that is totally my -- -- how are you.
Good guys that's going on thanks for have merely -- avenue rates why did you sleep this weekend he's still -- -- -- I actually didn't but the reason I didn't is because Major League Baseball decided to start its game at 8 o'clock very -- on Saturday night and -- -- ready to keep us up -- right.
The idea -- decided to keep me up two innings later -- -- spot and then you know 107.
Game over I mean it was a great result but as they watch the whole thing of course -- -- yet they load the bases don't get it done you take off this is gonna end badly but at least it.
We once it's all yet no -- so good good results and you know little little more clutch hitting an extra innings would be nice don't think it anyway -- -- And according to my my eight year old baseball brilliant child.
He claimed that because the winds were so strong there should have been more hits out to the outfield that that the winds -- actually so strongly stadium pushing them back.
I had to go anywhere -- I'm so overblown and yeah they were brilliant so yeah so -- out.
-- -- -- -- -- Terminator on tape but some trying to -- punch yesterday and the jets they can catch like anything else that's different story here to talk about Ben Bernanke have.
I am I am Ben Bernanke giving a speech in Santa Barbara California earlier today and they basic point of this it was about the Asian economy.
Saying that although Asian economies looked worse in pretty weak in the beginning of the year they've come back they should provide a pretty decent recovery.
Bernanke really talking about when that recovery does happen we're going to go back to probably trade imbalance is significant trade imbalances that he's saying look.
-- Asian consumers need to consume more of their goods.
US consumers need to save more and stop buying so much from Asian economies pretty much that the breakdown of Ben Bernanke's speech.
But no monetary -- talk whatsoever.
They're very little and and that's that's a huge problem there -- trees utility in the two issues related then that sort of a spur this problem one is it's a labor costs are so cheap in Asian economies.
Most Asian economies and the other side of that yes -- -- you talk about the value of Chinese currency compared even though we talk so much about how much weaker the dollar is getting I'd still nowhere near the level.
I of course lower dollar helps our exports but it's still it's still huge problem huge disparity between countries like China and the United States and no plan to strengthen the dollar anywhere in that text either.
Not no nothing there and you're not really hearing all that much to be you know at least last administration the Bush Administration while the dollar continued to get weaker and weaker.
Throughout the Bush Administration you at least heard.
The talk about then having a strong dollar policy the question was what what what is the strong dollar policy but they -- in this administration it's just support for the dollar.
-- and not much beyond that -- I think the administration to a certain extent.
Looks -- at a smaller dollar to try to help with those trade imbalances but but again at the cost of what.
It's interesting that need -- address anything really especially after parents came out this weekend with that big articles trying.
It's high time we start moving interest rates around and yet -- -- ever let's get out of emergency.
You know -- right now in and he and yet still we didn't hear anything from him about that today -- -- remains guarded especially with -- interest rates and you start to see some unwinding we got a New York fed announcement about an hour before.
Chairman Bernanke started to speak about unwinding some of the stimulus but it's really.
Nothing is significant is raising interest rates and I think Bernanke right now.
Feels that the economy is not strong -- footing where he can actually go and begin -- the FOMC can go and begin start to to start to residential.
Merit again always good that you're covering this stuff right and I'm -- I didn't sleep much this weekend but it was clearly for good costs.
Well you know and had Iran not hit that home run I would have -- a lot different but in the market and we think that -- idealistic game starts a lot earlier this afternoon now now I had to be a little warmer to.
Now that's great that's great but I know -- -- you do pretty long cold weather itself it's not -- that California sunshine it's -- makes it too easy for them.
-- anything too easy but you know two more games that's -- -- -- -- -- anybody thank you so much for joining us that they actually have.
At that site at all confused now now -- now -- now we're going.
Out to -- -- is how -- -- -- not Manchester Tom windmill president in my head is but and Tom how are you.
Fine thank you and I jumped the gun -- needed to -- them come over excited about talking about this.
I to the Midas fund have been around for a while you've been bungled for a long time now what do you see and out there that -- in university yours.
Well I think -- gonna come back and I'm very positive role for US investors the play we.
Just heard rich talking about the the Bernanke comments about perhaps though a lower dollar that means higher savings rates for US investors.
And lower consumption for US consumers that's just that another way of saying perhaps a lower standard of living.
-- way to preserve value when the dollar's depreciation is to put in the hard assets such as goal and that's where -- going to be positioned itself going forward.
So where are you do you positioning having are you buying bullion futures big the -- -- ETF what are you putting into the fund right now and and why would investors.
-- -- go to buy into a mutual funds just buying it directly themselves.
Well a couple of reasons if you buy bullion there's usually a very big spread between the bid in the -- and nearby in small lots -- institutionally can really get clip right there that's hard to make money on the Dick and there's the near to medium term.
A nice thing about mutual funds it is my this is that in addition to -- positive.
Tax rate vs say the NE TF.
-- -- investment mining companies they can only get the appreciation of gold itself but the the value of management they can pick out if you have a good season quality management team which we look for minus.
And growth through developing a project felt the pop -- the positive and have very attractive.
Internal rates of returns that means higher returns for my -- when shareholders.
Yeah and I'm all about it if you are gonna political world -- and I'm.
-- much right.
-- 100% convinced that's what people should be.
-- -- -- all their money into you right now but the mutual fund world is the way to do it and to your point Tom is especially you go out by that.
You know block a gold.
You actually get a vampire tax rate when you sell it at the end of the day that long term tax rates are not nearly as beneficial as they are when -- on a mutual fund or the -- stocks as you say things like that.
-- a great way to play it.
Didn't Morris are giving your final one star and I mean I've got to believe that had a lot to do with the risk factor of the commodities.
Which race you're right they they become on his world the -- world is a very volatile world and so -- go up and down we're currently way up this.
You're I think over 7% year to date vs the -- return about 1819%.
So it's positive there but with that also means we go up is that we go down so.
We suggest to investors that they consider maybe a five to 10% allocation to hard assets on such as -- Because a lot of people cannot deal with the volatility a smaller part of your portfolio means he can sleep at night and that support for long term investing success.
Are you all gold all the time argued invest in the other hard assets -- her.
Platinum palladium I mean as -- all the.
Play away got.
We will look at them all silver is has had a great run this year -- about 50%.
I think the sleeper medal right now that minus hit some facets to this platinum platinum is.
Is way down usually trades at about 095%.
Premium to gold it's now.
Just -- that 3% over both the least expected to go higher if the economy does recover.
And there's more demand for platinum for auto catalytic converters and other men engines than we think.
-- president go higher plus the fact it has an average cost of production not.
200 dollars and outs to -- 2000 dollars an ounce and so.
We think that platinum will naturally rise just because the marginal our producers will go out of business plan and we'll we'll go back into a deficit of prices will go up.
-- a lot of -- that silver and actually some -- in and set asked.
Where DC silver play out in all this you know a year from now two years from now it seems to -- underrated metal as well.
It's an underrated metal it's considered -- little brother the problem with silver in my judgment is that it's a byproduct of a lot of -- now productions as copper zinc and so forth.
And when the economy's -- going mines produce a lot of silver and that just continue to produce it because these other prices are high and that means access Silverstone to market so.
I wouldn't advise silver at these levels had a nice recovery ideologues and two and under performing -- such as gold up only about 18%.
And and -- look at platinum very strongly right now.
-- -- underperforming but nonetheless you were still near record high territory here folks who you rushed in you know in the early 1980s.
-- similar situation here you did you get a date -- some of the workforce and a holding for very long time.
What do you say to investors you know were skeptical about whether or not you golds at or near peak right now and -- may be headed much lower.
Well rob there's is a lot of skepticism I noticed that the newsletter writers so on the whole alert kind of in the -- position on gold.
And if you look at past.
Market fluctuations women newsletter writers are -- it's usually get time to get and I think there's a wall of worry about -- you know interestingly.
You mention the 1980s period.
If you are inflation adjusted peak in the gold price back in 1980 to today to be about 2400 dollars an ounce or really not anywhere near the highs that were set in 1980s.
You know interestingly were talking about.
Know the beginning of the the Bush Administration -- a few minutes before and that is.
They did the dollar has come down about thirty per excuse me it's about.
30% decline in value for -- ten years ago.
There's an ongoing decline in the value of the dollar.
And this inflation adjusted approach to -- very important -- for -- can come in because it it tends to preserve value and other assets are declining.
It's in no load mutual fund minimum investment is a thousand dollars can you do -- monthly.
Addition of into the funds.
Oh yes we do we have a hundred dollars a month program and we.
Suggest that for most investors because then they're not worried about investing in a market high and it keeps them going month in month out.
That's a great way to -- -- discipline of savings and that's her Bernanke's talking about but now you're saving in an asset.
The presumably will keep its its appreciation no matter what currency were talking about.
Can -- ask about the turnover rate it's pretty high it's about a 130%.
According to Morningstar.
We -- number if you're just buying gold.
Well it is a very volatile market and the interesting thing about -- this time is that we can actually borrow money and leverage which we do -- that.
-- this is -- -- -- the fun and at certain points to rethink the stocks have been way oversold the way they were the fourth quarter last year we -- Take on a little bit of leverage and we tried to ride through the market volatility.
And in order to do that what we do is we employee turnover will we'll take a big position.
When these things spiked up as they do to try to roll into more value oriented types of holdings from -- this time.
Quickly I know we got to -- in a few seconds we got talk about oil if we're going to be talking about the commodities where do you see oil going through -- list.
Well 78 dollars a barrel we think it's little bit too high a kind of interesting -- need to sell oil go along platinum because.
Oil has depends on none -- -- very vibrant economy.
Platinum is saying that the economy is is -- -- be on its back for a while I think it's probably somewhere in the middle that case so I'm a little bit worried about they.
Whether -- can sustain these price levels.
And -- you talk about everyone you -- getting bearish on gold and everyone's very bearish on the dollar to that's very crowded trade.
Are you worried that maybe the dollar -- the other way and then you -- go.
Old -- beach begins to lose a little luster so to speak -- -- I think you're right there's been a lot of volatility going forward.
The longer term picture though is that there's a huge amount historically.
Massive -- -- money -- one point two trillion dollars that's not going away anytime soon.
And I think this monetary.
Target of 25 basis points zeros mean the dollars is to go lower -- raise its rates.
Big big thing that is important for the US economy get on its back is -- lower dollar that means more manufacturing more exporting.
And a lower dollar means typically a higher gold prize.
Come on -- you -- from Manchester, New Hampshire.
Thanks so much yeah.
They went way up there with granite state yeah -- pick it.
-- -- -- -- Thank you so much experience I found all this stuff and again I think that if you gonna go this about do it to have funds check out morningstar's ratings on all these things because itself.
It's good stuff morning -- is it just plethora of information when it comes -- mutual funds and they you know and it's no load that's it looking for a low fees.
Save yourself -- exactly right gonna take a quick break but we'll be right back on foxbusiness.com -- to put us.
Hey welcome back to Fox Business -- okay so another the plethora of news this weekend always market related.
But I got to tell you we'll run my actor at all with that -- -- -- are sold.
For -- -- 181300.
Dollars -- see now apparently this.
Mop of a mess over there was -- hit elvis' hair that he got that -- Came off his head when he went to the army in 1958 so we went in on and they always showed on -- isn't like your regular guys right.
To blows really this is elvis' hair.
Now there was a -- that kept all this stuff together this was one of over 200 items this guy had.
They -- ended up in Chicago and he got 181300.
And one how do you prove -- since we've got suspicious minds -- -- very nice.
To know the but we -- think it's a good fun.
He had also had a red ultra suede shirt.
Old closer -- -- not really silly is that like other -- -- like they.
Sham wow stuff if -- nevertheless that was explodes expected to go for about 4000 dollars it went for wait for it.
I get that there are Elvis fans out there and there are I get that everybody you know pays homage -- -- -- counted.
No doubt it's out of Graceland seeing it -- I know lots of people in -- building you that 34 -- for an ultra suites there.
Again what recession what recession look out and it meant that and I think this is craziness -- want to be speaking literally.
-- -- All right.
Right now going to Chicago I am at my.
My country implement them today Kerry Keating managing director -- -- is with that out in Chicago.
How is the windy city today -- It's a nice.
Kind of crisp fall day today beautiful day and that's something -- for some reason yeah.
All right so where we're -- and -- -- we're talking credit markets here.
And you're seeing signs of -- of where.
They are are definitely where -- that well is there is.
There's certainly a lot of problems still out there without question but there are signs of life.
It in our practice we talked to the bankers every day particularly in the midwest the middle market bankers.
The ones who -- lending money to you know my mom and pop businesses that are out there today.
And what I hear from those bankers -- some optimism that I haven't heard for a couple years.
The last couple years have been a negative feedback loop and it's been you know just hang on survive.
Don't look the bank go under and will pray for better days.
But we're seeing a change in in the the attitude if you will.
Major banks here in Chicago.
But wouldn't say across the board because -- -- all -- -- statement but certainly the vast majority of them have told me that their plans for next year.
Include hiring significant amounts of new bankers to develop business.
One of the banks here major bank in town.
Plans -- -- 27 new commercial wonders for next year.
But Terry -- -- 1210 to fifteen.
Ours is gonna ask you -- are -- you're there you're talking.
Mostly did the bigger sort of like regional or national banks -- -- here speaking about some of the sort of smaller many credit union types here.
That are you.
Becoming more willing to -- I I would say both Andy and -- across most sectors the one factor that's there it continues to be depressed and I think will be.
Is the commercial real estate sector option generally lagged the other sectors but.
Both you know on the consumer front and -- commercial front.
There's a sense amongst the bankers that you know we know we still have problems to deal with but we have some sense of what the size and dimension those problems are.
We've marshaled some resources to deal of them.
And so you know that that's great let's continue to focus on that but meanwhile.
We're in the budget season were sort of talk about our budgets for 2010.
And at the prevailing thinking seems to be.
Let's get back to the business of lending are we gonna go back to the levels that we had in 20052006.
You know just about anybody to get along of course now.
But we have to get back to putting earning assets on the banks the banks balance sheets have shrunk.
They've they've -- reduce the outstanding loans.
To pre 2006 levels right and -- -- -- it they've been putting them the money on deposit.
With the Federal Reserve.
-- Terry or not only -- -- from the federal.
From the banks here like today BB NT out of North Carolina saying that there -- putting aside even more money they're concerned about a lot of the loans going bad not being able to collect on them.
You look at the data from the Fed -- pulled out from last Friday's here you've got cash tax assets of more than doubled since that the TARP program a year ago.
But you look at -- commercial industrial -- down 9% on the week down 227%.
Since TARP came out.
We're not really seeing the numbers bearing out at -- at least in any.
Measurable way right now.
You consumer loans were up as a slight tick -- three billion dollars.
We could -- week -- that's -- that's nothing when you think about the entire Federal Reserve System here.
So I'm I'm just wondering too who run these loans being given -- in -- it might the most sterling credit rated.
It's -- v.s out there.
Well certainly you know if it had to have football almost sterling -- -- to get along the -- but what we're really talking about here.
Chris is 2010.
You know the floodgates have an open 2009.
Most -- institutions have said you know what it it's a wash -- the right off figuratively and and literally.
And done so we're not thinking so much about 2009 but we're talking about the plans for 2010 and we're starting to gear up.
For a change and -- -- you know economic signs that are being reported so increasing signs of stability perhaps even some growth in some sectors.
Notwithstanding the problems that you decided you're absolutely right there certainly are a lot of loans -- that are still on the books that are suspects.
So it's primary -- -- -- -- its image in sectors can you just back have a second -- which sectors you're saying.
The the most severe a green light signs yeah I think our viewers would like to know -- where.
People are able -- to access lines here.
Well you know could do a lot of what we see is general manufacturing general manufacturing.
Has been an absolute doldrums and in in some sectors have just been killed.
But they've stabilized they're starting to see some uptick in increase in the orders.
As both inventories refill and there's some -- anticipation that the consumers.
Will slowly here is slowly get back to spending and our economy is 70% driven by consumer consumption.
So has the consumers.
Begin to spend then that feedback goes through the system.
-- I understand what we're saying here's some -- 2009 as a watch Republican at 2010.
And I hate -- it but a lot of people think talk is -- because I've been hearing as well from people banks in particular.
We're gonna start lending again we're gonna start but we haven't actually seen it happen and to your point -- could consumers in order for consumers to get off their butt and start spending and they need a -- to do it.
You know if I wanna put that extension -- my house I can't do it unless somebody gives -- a lot of they're not give me alone the whole thing comes to a dead halt so.
We need to start C I mean it's almost like someone just needs to take the first step indicted some -- -- needs and make that first loan once it goes okay and nobody defaults on it.
The rest of the banks will follow but I feel like until then it just really guarded and -- -- holding onto their caches robber pointed out.
It they absolutely are we knew wouldn't you know that cash held by banks of the Fed has gone up nine -- them it in the last year.
So you know extraordinarily.
But again for 2010 they can't sit on that cash -- have to get connected to to doing it and as they say numerous banks have told me very specifically.
We are going to be -- lenders to our staff for next year.
We're looking at significant.
Budgets for increased lending for the coming year.
I'm you know exactly.
You know who's gonna get those loans it's certainly going to be people who had -- you know better track record.
A you know and in credit statistics.
But -- -- the economy levels out the bankers themselves are more optimistic things are going to be better as opposed to worse in 2009 it was a question.
How much worse can get.
And I don't want to make any -- that now we have this sense that maybe maybe things are starting to turn a little bit so maybe it's okay.
If I start to extend credit on a cautionary basis and it will be cautionary for some time it's gonna take a long time.
For us to get the fifteen million people who are out of work back to work.
Yeah absolutely and I think you're you're hitting on the nail on the head there with time may have heard that from so many you know market strategists also folks on the credit side as you're talking about there it's funny of one of -- Viewers writing in saying in the banks willing to lend but for some reason it would be certain of being paid back this time it.
Yeah are you seeing -- stricter you know loan covenants out there -- is it you know are that the if for folks who are getting the loans.
They haven't had to put up more collateral you know everybody out yeah we're giving up up -- -- -- -- -- There haven't put up more collateral you have -- a morbid of a down payment it's our way I I -- I've been referring to that's kind of a back to the future it's about a ten to ten year back to the future.
If you go back 1015 years ago and think what -- the terms that.
That you get bank loans whether -- -- consumer whether you're a business -- sort of back in that environment again in terms of rate in terms and that's not necessarily a bad thing.
You know when you look at the -- the many bad loans that were made over the last couple years clearly rate terms were inappropriate.
So the reality is going back to -- more conservative terms in the long run.
He's a good thing for the system and it's in it's good for us to get back to that -- is because -- that at those levels.
Based can safely make the -- -- -- willing to make -- Not I if you -- the standings the went way at -- sure now you know what completely percent to one of my house wares at the wrong asking people to -- Then that's the way it was always done -- -- you know.
It worked for a lot of years so we don't know why shouldn't it work again and it and it certainly will but it you know you -- you had mentioned I think this time.
You know time is the factor here.
And I'm not talking about a quick rebound you know don't think that you know for Christmas you're going to be a political -- and you know completely leverage yourself up but as we get into 2010.
Time as we get in 2011.
There's definitely been a change in the feedback loop and and and how people are thinking about their businesses.
Even at Amherst partners -- we advise businesses.
70% of what we've done over the last the couple years has been turned around restructuring work.
But I tell you the agreement surety of the assignments that we're talking about now and -- -- are coming in -- is inquiries to us.
A really growth oriented.
You know it's a it's a growth strategy here it's a can you help me with a joint venture there.
Client recently called me asked me to to assist them with the refinancing.
So we're talking about different things.
Yeah I'm used to by -- a -- that's good news and then at least there's a light at the end of this proverbial painful tunnel.
Terry Keating managing your -- -- Amherst partners will be waiting for it we got that back and point again I think -- -- -- on -- That's right that's.
An interesting the -- please do thanks for having me on.
-- a USA you know there's a bull market everywhere there's a bear market -- -- and that's that's a DT use on the telling you more about that coming up in the human.
-- -- Hey -- look back to at -- -- that dot com live I'm Robert Gray with Tracy Byrnes hear that well.
It tells you about your big tease your bared teeth is a bear market ever Oxley where it is it it's coming up in a little while and if it's a fun when -- -- my.
Probably Conyers to -- -- may be involved we'll figure that it's.
Hey guys by the way in -- you're probably watching this streaming live right now which you also -- Twitter.
An -- and live also download the podcast on iTunes apple reporting after the balance yeah exactly there right.
Talking about the market here apple shares have been lower we'll check on a minute in a couple of minutes right now we're gonna check in on and the cold and the -- Down in the heartland.
Payment on our Doctor King being out.
I'm my own an iPod it's paying guy he's been on subway line and I I am paying five -- -- right I I I just rallied today.
This is unbelievable by the way I'm thinking this is the nail biter right -- them waiting for your bear market -- OK well let it take a look at what's going on with -- market.
The Dow Jones Industrial Average up 100 points new -- again sitting at 101100.
This is then let's.
But that's certainly it's a little by little the little engine that could and it really surprises traders.
Day in and day out as the momentum just needs to be outside and that's what they focus on they often look at the momentum now they know they're well aware.
We're in the top spot -- the economy there's still watching that thanks very closely unemployment still near that 10% level many of them -- tend to.
-- be comfortable ten point 2% anything higher than that -- really.
Baffled this market that's certainly up to that point they're pretty comfortable they know what to expect so as a result they just keep climbing higher they feel like.
They know what to expect and they just keep looking -- and that's why this market.
Continues to run to the upside they really are looking for the momentum here.
And -- -- -- for the fourth quarter and then 2010 as far as had gone by the way I've got to keep an -- I'm caterpillars to -- up big winner on the Dow Jones Industrial Average.
Accounting for nearly twenty points.
Of our game today so that's certainly been on the upside in the -- in the Dow stocks are higher every one of the -- enough about.
1% respectively as well as the transportation index up.
So far it's a very nice day here on Wall Street -- These are -- up 500.
Million -- here and chases taking admit they're earning one -- one and -- but a lot of painful but you gotta do -- and that.
28% of the S&P 500 companies reporting we've had bits and pieces of news names like.
And had to throw it and get mad all coming out with the -- and the news and -- With this idea with Carl Icahn they are stepping in helping with their -- so those -- -- different pieces of news that we're watching certainly.
But does the banking index is one group that seems to be lacking miss this one that we are seeing -- I don't wanna call at a rally -- always careful to use the word rally.
But the banking indexes in downside while we are seeing some strength in the retailer's from the outside.
And that's what's gone on here tacking on another game the Dow sitting at 101100.
Making new my opinion over the years so.
Certainly as nice to be able to stand there report 52 week high or new -- -- those -- Cutting jobs and cutting jobs and that was a tough time that we like figuring -- I felt it thank you just stand here I know we're certainly not the top of the market where we work but.
They -- in a better place that we where six.
In the -- thanks so much down on the my old stomping grounds apartment -- found -- -- -- you know and we're sort of getting to where 52 week highs of 52 week highs here because it's all about comparisons right and insane with -- -- a year ago we noted -- -- -- serious decline.
And Syria where I should send a better place it comparatively but what -- remains to receive the fundamentals bear that out.
I granted in greenhouse and had a note this morning of military back and he noted that just about 80% of the companies that reported the bottom line -- -- on they were gonna do up.
-- we got anywhere from 5060%.
Beating on top line or revenue Brenda and again I think -- -- was expected.
I think it's still bummer -- you think it's -- -- Think the revenue numbers actually pretty good you think.
Yeah I really would like to seen I would have liked -- -- like we're gonna talk about a company a couple of minutes that there revenue is expected to jump a lot.
They're an anomaly though they aren't they are big goal anomaly -- probably and and I think it what -- -- but yeah I took him to go -- what move in this morning big losers are Fannie and Freddie Mac.
They're getting clobbered today they -- and about fifteen and 12% respectively earlier.
A key -- woods said their common -- was worthless my answer to that is.
Yeah like the -- -- it offends me that anybody still holds these years.
Some like like an option for some people like you know I guess they light at the lottery to be take a shot.
I have bro I have but we -- talking about this earlier third quarter profit was up eight point 8% again been on the bottom line.
But -- real concerns about inventory -- times.
Movie times -- -- -- but concerns that addresses this comes up to two things right can't get the credit to make a threat that manufactured goods and every -- just been really nearly.
Stingy line in about.
We just talked about the -- else talking with our own in house economist mark Lieberman before I came on about these numbers and showing -- how that.
The numbers keep going down and people are not being able I'd be able to to borrow to replace him with CIT group.
I don't want to steal your thunder but.
Still but 89 days there and -- they they give VM the manufacturers say you know front people money -- they can.
Then by two years to sell to the stores in the so they really are important in retail as we come into their most important time of the season.
That companies teetering on bankruptcy right now.
Right and -- -- -- and so I believe that they were removed from the equation the banks aren't.
Making loans where's the money come from just heard this weekend on not your questions your money we had a small business woman on she's making issues.
She can't get the money to me and you -- to make more issues to meet the demands of her sales she had a -- of it's what you want Bernanke get the product out there and as you noted CIT up 12%.
Today because we heard that billionaire -- -- Might underwrite get in there about six billion dollars in secured loans to help them out they need that time actually take them.
I thought it was funny he sees no reason why the current board still continues to run the company -- mother just called them.
It's his biggest creditor to say he's putting his money where his mouth -- he's he's he's -- already and he wants to get out with.
Some you know some money back.
Any welcomed there because if they go bankrupt and he's gonna get very much back to me but at this and again this is another company comments shareholders -- and -- I don't get navy -- kind of saved the day and you make some money maybe and finally got -- comedy -- -- PC at.
Little affiliate of sprint on fire today actually hitting a 52 week high.
Sprint Nextel agreed to acquire the affiliate now this is one of the last remaining major independent players for sprint they -- -- big legal battle.
Suspect sent the bite -- 426 million dollar deal and the legal battle they've been cheaper than the wires.
But -- the and so that's that's what's moving this morning in -- around.
1230 East Coast nine parity on the West Coast but you know what else is moving -- apple.
To stock was down this morning.
And hit fell to 185 and a half -- at 18879.
Now so it's doing you turn it's moving higher.
George Stahl from Dow Jones he's assisting managing editor so kind to join us in and talk about apple really mention that I mean it it seems -- so ubiquitous I mean -- -- -- a matter -- -- down.
For the exchange -- nine I've got my iPhone here I'm I'm hooked and now -- was.
Talking you know -- does.
A radio host out in California this morning and AM we are discussing how -- how do we get by before you know apps and be able to go online at your fingertips and apple has really.
Harnessed this technology better than anyone.
Thus far that's silly -- apple leverages the fact that -- does -- create the software but also creates the hardware.
And by -- that together they they form a better Smartphone or better a lot laptop.
Then then the PC makers who then use Microsoft software to power their machines.
-- and so you know you look at the we talked about the -- estimates you know they're expected to have 13% year career earnings growth 17% revenue growth so I mean.
Pretty impressive and they had pretty decent numbers considering.
The state economy last year in the third quarter you know what you consider.
-- Lehman debacle AIG you know -- the whole list goes on the market tanking he with a -- puts everything in the I think they did pretty well.
Last year and it -- -- -- suggesting those numbers you're suggesting is -- the street is expecting.
And and I would I would argue that most investors are expecting apple to blow by with the street is expecting it would be disappointed if he's just a marginal beat they're expecting a big beat one average Apple's per share earnings tends to beat the street estimates -- 20%.
Because they also in throughout history global yeah I think that's -- they -- I guess they come out very low estimates good you know guidance going forward they do this almost on purpose but.
Last year and they sold six point nine million iphones during this quarter.
Totally blew that out of the water is this story now about the iPhone could be used to be that the real story with apple with its Mac.
What telling us but the iPod brought him back from.
The iPod did a great film never really took over at the Mac the Mac was in big money maker is it still -- -- Mac or is it.
-- -- I think it is is absolutely I thought it is the iPhone right now is about 20% of the company's revenue.
But that's because -- under the current accounting rules.
Apple -- first of revenue that they sell each iPhone over two years filling for the contract with AT&T exactly exactly so.
Because of that it's it diminishes the impact of the iPhone in the company's results play it very much -- apple -- an iPhone story and will be cell.
For the next year or -- Continuing because of the fact that I've always considered the market leader with consumers in the Smart.
Why don't have 1 so I am I am.
If you like a dinosaur in this conversation it's -- -- I'm going to put it well I was just gonna say so now the story it it -- -- what used to be.
You buy a Mac and then you buy all the ancillary products to go along with your -- But the story now -- -- by the iPhone.
And you vital the other stuff as ancillary to the phone so if I Columbine iPhone odds are very good I might also switch over to a Mac at home.
I guess that's the -- There's a halo effect -- definite halo effect with apple.
Where if you get they can -- you -- on one product.
They're gonna expand their reach -- -- and and what we've seen so far this earnings period is that the consumer spending has held up.
That's what it's also last week when it reported its earnings.
IBM on the other hand when -- report its earnings said.
We were still not seen the corporate buyer after yet so for more indications that the spending that's going this technology -- consumer related and that that's the case that stuff we -- event.
An apple guy and you talk about the -- -- me and I got a note from Piper Jaffray to the last twelve quarters -- -- about three years worth.
Apple has guided revenue an average of 4% below the estimates on the street and earnings per share 12% below so.
When these numbers come out it's always fascinating you people who trade after hours -- always do you wanna give them a disclaimer warning be careful because.
It's a -- -- these numbers come out the forecasters solo.
Almost immediately see the stock drop -- it it can drop 1012% in the next day open up much higher than those levels.
-- did the industry as a little game with apple where they will take a look at Apple's guidance and just just immediately throw 20% -- -- you can't go by the numbers of that and I wasn't -- yet to do some math to figure out how that fits in with where that person that investor or the -- this would.
I have argued for a while now that apple is not a story of the consumer because.
The consumer could be broke camp -- mortgage can't these kids and is still online for that next I and along line and another on last night in cold rain no issues you name it they're still out there waiting for this thing.
So going -- -- I mean.
Do we do we worry that they're not going to continue to make that kind of product anymore are we just completely -- Apple's -- Kill us with something brand new every single time at.
And as I suggested the iPhone has still has some links to it so that's going to -- apple for the next couple quarters.
Did the -- get I don't know -- an -- now but the big expectation surrounding apple is is this tablet that we've been hearing about for an up or personal many quarters now.
It's going to be some type of product that's in between -- Any -- the iPhone and and the iMac computer it's going to be a hand held tablet like little big -- app netbook and a little out of the lead -- -- touch screen maintenance stuff and -- -- -- -- -- -- more Kindle and others have -- -- there's that they are not only known as a bunch of guesses out there seeing some pictures like they -- but we don't know if it's apple or someone out exactly exactly -- a lot of those secrecy surrounding -- -- that is probably going to be the next big driver.
Four for apple wind speed this steam comes the iPhone but as essential to the iPhone has -- -- orders left I can't buy anything.
Steve Jobs health at all through this.
There I think there's there's some obviously some legitimate concerns this group regards Steve Jobs out and but I think a lot of that premium that was an Apple Stock has been taken out over the past year with his medical leave and return.
So I think it would be the premium that you see in Apple's stock is more of belief in the company and less because of Steve Jobs certainly if something were to happen.
The stock would retreat a little bit but I think for the most part the premium that that apple used to get because of Steve Jobs is out the stuff.
To -- -- hidden stories here is in AT&T tends to benefit a -- decent amount of the from the exclusive contract.
Obviously when you see Verizon is able to get -- on -- next year there's some of the rivers eighteen tees up about when a 3% but to me.
The hidden gem here that's not getting a lot of of -- from analysts and investors is the App Store.
Mean once you've got the -- your hands they're still they can make more money -- of view and more money then.
99 cents per download on iTunes which they did with the iPod here you've got five and ten dollar in in some cases maybe even more games and applications.
And they're -- billions of aids and to me this is just like you -- ringing the register every time -- -- to Apple's getting a cut.
From everyone out right and we -- games -- one of the hottest sellers in games tend to be the paid ones vs the free apps that you can get out there absolutely and it dared.
Not only though is it a revenue stream for apple which it is.
But it's it's a product differentiator because no other Smartphone.
Has the apps behind it that the iPhone does.
It's it's what separates the iPhone from the Blackberry.
From from the Nokia models from the Microsoft miles and from the Google model so far is that -- they do not have the App Store to did to that.
A lot I can -- it right here that's it if we -- Well at these guys aren't exactly the most updated did it and in all fairness to Research in Motion but you know don't let -- -- Your son see the the app which on my wife absolutely loves that you can manage your fantasy football team in real time on.
-- That's bad news again quickly before we go up.
To me it's it it's been a little bit of the PR disaster -- -- Steve Jobs being one and then they come out and just said.
We get a sense a mile long with brilliant people waiting.
Just come down it'll be okay and they haven't set that.
It's tough to read into into why apple does -- things -- that.
But did -- the company was in -- -- -- tough spot because she had the personal health of somebody.
That four for personal reasons -- not want his help.
Case to be known publicly and and the company respecting that.
Backed off that certainly though given the the prestige -- jobs brings to the job to his job.
-- there was a cry for apple to be more forthcoming with information about him and it.
But the company at the was it difficult spot trying to balance -- they need to tell the public and also respecting Steve's privacy.
Gagged a great comment here from the board I mean what about a range and we've seen that with palm.
Yeah they're able to access and iTunes you know but the although they had today and disconnected but.
What about a range of particularly you know if if Steve Jobs is no longer at the Helm at some point you he maybe he is fit the personality that's holding it together even though the company can still function.
Maybe people aren't is drawn to work there and stay there if he's not at the Helm me at this dynamic force behind it that you those I think a great.
You know comment here that maybe some competitors Microsoft Research in Motion -- must all -- -- camping at the bit to get it definitely.
-- it leaves fox rye.
Thanks -- yeah.
I think that.
Wait what you saw when when jobs was out what you saw a couple people really step up to play wit which is the it which is said Tim -- computer Schiller who really became.
You played more of a prominent -- especially being out in front of the company.
And and they're -- -- I think that helped to reassure.
The street and investors that apple would be in good hands should should Steve had to leave his job -- -- I had to drop my Blackberry with a few more times afford well I am more than another way to -- that the new black various ministers IT you know.
Gives the green light yeah -- -- -- -- sauces or any of my dad dad and in fact thanks so much for them.
Have originated quick break and hopefully when we come back as world -- -- -- -- hear about.
Roberts think ericsson's we'll be right.
-- back to Fox Business live -- is quarter to one -- on the East Coast.
That would mean quarter to ten on the West Coast good morning out there.
-- -- Has something that Clinton -- -- listed yet you're -- coaching you don't have to wake up early for us but we appreciate it -- not -- better.
Yeah I talked it's better that he would break up the unless it was true so look -- -- What come Iowa -- you know bull market everywhere and you heard you know all the pundits on over the past year talking about it well you know -- inaudible Mark Ellis and disputed the -- say -- there's a bear market.
Somewhere as well and and sometimes well there's a beer market here I think we have that maybe some picture.
After the guy affiliate WL EK fox out in Wisconsin -- Wisconsin grocery shoppers in Hayward.
Got a little bit of a surprise when they went back to the beer I'll.
The film was bear there 125 pounds in marketplace -- in Hayward Wisconsin he climbed twelve feet coupled to a shelf in the beer cooler.
We hung -- after about an hour until Chris -- made in -- Get in the cool -- got in the cooler.
I was hanging out in the -- Apparently didn't didn't drinking -- -- others.
On the -- guessed it -- -- -- -- form -- I mean when they -- allies in the amount but didn't hurt anyone just a straight to the beer cooler heading getting it.
What credit they have electric doors they open he just Waltz right into the supermarket.
-- -- Epic battle -- similar go to 7-Eleven -- and looking all around me concern me and I'm wondering if the camera guy in had -- open -- just in case to.
The road to -- be without having good TV -- Now open again -- Beers at down hung out there.
-- health -- Miami LC that every -- when you go and a pick expect I think you have a.
-- a lesson I think that the -- back I would.
I'm really quiet I don't -- -- he had you know it's incredulous over here let -- have picked -- -- was the last night into Saturday.
But anyway yeah I'm sorry pathetic -- they we we we digress here.
As we tended to attend this in the fund that's been added here and -- and Diana which are so -- -- -- Christmas here to bail us out it's not.
They I had had to go and actually Dunkin' Donuts maybe it's about transition that you know -- group.
It landed about contend that there are -- dollars small breweries around a celebratory back delaying her and because of this yankees right.
So a huge story we've been talk about yet you for a long time and huge lender to small midsize businesses.
And they're trying to restructure.
Out of bankruptcy but they are virtually bankrupt right -- so this is it.
Up threat to our US economy our economy is very dependent on getting a small this is getting loans from this company.
Basically can leaving it can't -- right now so what the company is done to attract more bond holder's support.
They have sweetened it this.
Essentially this debt exchange that they've been trying to do they've been sweetening the debt exchange plan.
And meanwhile Carl Icahn.
Who says he's the biggest creditor of the company.
It slamming the whole proposal I mean hardcore -- saying that proposal proposal by the C a keyboard.
And so what he's doing is he's going after -- now tried -- -- also you know get -- get the board on his side and.
I'm afraid is that about this is your -- I -- -- -- that I had most of those people probably nobody in the eight.
Intensive to jump -- when he has a significant stake.
Whether it's credit card or stock and the local yes he's very well I think that the board should not be running this company my book called imagine he wants -- he wants to -- -- -- straining every single board members actually.
So he's extending a six billion he's offering to extend a six billion dollar lifeline.
So the company is looking at the sweetened that exchange offer insane that's ridiculous.
Incompetent and unconscionable.
Any of these saying see you later to the whole thing.
So remember also that interest in turn the stories that Jeffrey -- the CE CIT group.
While -- -- trying to avoid bankruptcy while trying to restructure out of bankruptcy now got a six billion dollar lifeline from -- being proposed by Carl -- its biggest creditor.
And meanwhile the leadership walking -- the -- and I hear him.
I mean it is just a mass in the sitting -- six billion dollars.
In -- and what they're trying to do as they're trying to exchange that debt that's it that's due in the near term but that -- -- -- in the near term -- trying to exchange that.
And make it do we later out without all this that they're sitting on is due in the next couple of years -- -- doesn't help the people.
The sort of leapfrogged -- -- people who were a hole in a different route they would be at a disadvantage then -- Selena.
-- -- Calls right it's a done deal why would I hate this deal -- it get old I can't basically telling me.
I oh you know next to -- to pay next year but I want to push it off and -- -- over the next couple.
When you don't believe this companies -- -- -- in the lights on tomorrow right exactly and so -- you know he's saying he wrote a letter to the board an angry letter at that.
He -- a lot of the board and basically he's commenting on it saying.
I will save myself.
A creditor of this company a 115.
Million dollars in fees if I just extend the 69 box yeah.
And found a better outcome than most likely than they would get from bankruptcy.
So -- he has a vested interest here but he also does have a point I mean you know the board and everyone has ever seen this thing going.
All the way down there once for saw the credit got to maybe they did maybe ultimately would have -- a lot of people that.
And don't -- up yet.
That ended as actually keep forgetting to make this point that don't forget that we will we -- will now -- a percent of this company if this goes through I mean they -- received.
Government bailout funds and it'll.
But I don't think it's well mean I think we it's important for people understand how important this company is of all.
-- TARP bailouts we've been hearing about all along this one is really important to our.
Especially middle market small and businesses in -- not just for the mere fact that -- people who get their loans from CIT group can't get their loans from CIT group a new Dunkin' Donuts franchise take a -- another guy and you want.
It's not just that if the psychology of the small business owner right now and knowing that there's that -- that this company's on the brink of back.
Thank -- this sort of -- brings back in the market machinations that sort of at its best or worst and now you look at it but.
You've got someone has a vested interest in any seize the assets CEO who is really depreciated a -- and he's going to step -- And step up if you will try and get this thing back on its feet as opposed to seeking a bill.
It's saving grace at this point in the other -- -- -- slamming CIT -- at the same time.
They're trying to get it they're trying to get the bond holders to sign off on this plan to restructure.
If they do indeed fall into bankruptcy let's just obscene admit -- who are we to judge that but that's you know everybody out there is looking at this thing.
All right got nine got -- right dead on about the psychology and we hear it on Saturdays only talk to these small business people they.
I was actually we were just talk about this they may have -- I mean they have sales now they had demand for their product.
They can't get the money to make and manufacture the product and -- they've been big getting clobbered -- and of course we don't know 80% of our.
Jobs come from small businesses and so this might call it -- might end -- being our.
Little guardian Angel you know mid -- that is sort of a test case right -- They're denied a second round of -- TARP bailout funds and here you have someone you know market player coming in at that -- up right it's it's back to basics.
But we've been talking -- -- -- in the past and I basically the united talking about.
-- Carl Icahn.
You know loudly proclaiming against all that's.
Still CIT is expected to file this amendment today.
The bonds -- for the month.
Sandy Smith will be all -- it.
Yeah any other -- quick question what about shareholders someone's asking on the -- great question I mean again as it is starting to look like an option here at this level where they go into bankruptcy or not.
Went for an all shareholders percent over here -- the stock here.
You know -- a dollar when he period.
They ended this stock by the way is up 12% -- -- -- end up benefiting the -- -- saying Watson -- just saying you know this -- -- doesn't -- doesn't look good for shareholders right now -- I tell you play goes through it.
It should in theory.
Keep the F.
-- exchange offer is completed common shareholders today won't about 2.5 percent -- -- -- That helps them.
Again show the fact that on the -- the dollar hitting it fit I'd be volatile thirty happen it's around a dollar thirty it's up about nine point 8%.
It's a lottery that's the thing -- -- sign off on this there's still no guarantee that they lack of -- bankruptcy right actually just doesn't look at.
Yeah again it's it's it's an option -- it should be money you're willing to lose it I mean.
Generally bright stopping violence it but it's something like this where there's an event waiting because -- -- is -- gonna get the month data and supported this study out.
I we're gonna take a break I'm gonna continue to sing that song from Naples otherwise and I like the -- -- had a -- kicked in their window about that that would have been -- -- -- -- -- it.
-- have and the whole animal segment coming up.
At that I'm from Jersey at anybody him.
Plus a lot of Carolina.
Welcome back to foxbusiness.com.
Live I'm Robert -- with.
Tracy -- -- treating -- nothing about animals.
-- -- -- -- -- All right well we're gonna leave the animals behind now we're gonna move right along -- -- that founder of Xenia helped dot com she's that kind of to join us in studio today to talk about.
Virtual assistants now you we talk about outsourcing and things tell us a little bit about your business plan and how.
Z help dot com works and in -- -- Clients are.
Let me tell you live up to that a little bit about myself for -- us an entrepreneur Lauren I've been.
Involved in different ventures.
Ever since I was 21 pretty much after -- after I graduated college.
And my my main thing always was funding and I think that's that's the same thing that that every one -- -- goes through right you have all these ideas you don't have the enough money and you do not want to go by the banks and you know get credit cards and sometimes you just don't you cannot even get -- much of the credit line.
To help you you know open up an office and keep 34 employees just sometimes just doing that is going to -- up.
You know pretty much all that -- -- That money you can actually allocate in market that you can actually promoting your product.
-- That the main thing behind this is.
To actually help people like myself and other entrepreneur or -- the half the idea but they do not have that much help that that little push that they need.
To make it or break it's actually make it a success.
On the business breasts while I originally I was like -- I could totally use of personal assistant I really couldn't be something for me but it's not so I needed business.
And then some high hook up with your system and what do you do for me.
You don't really have to be a business actually can just be yourself and you can have a personal assistant just for yourself as I don't imagine I mean a.
Olympic -- -- -- and they can do edit things but actually you know it and I think in other than -- being there physically so -- what does -- what does he helped -- and how does that help -- -- marketing and things -- Kathy -- let's say if anything that can be done -- that includes tele marketing that includes.
Payroll that include its.
Answering your phone calls that includes.
SEL web development and nothing else other than presently being there.
If they they they can take.
Take -- -- very Miller yes yes so you have a staff people yes how many people you haven't played we currently have about 75 people.
And -- have the same person every time yes seven person that's assigned to me and does that mean you go out you'll -- Information from me you'll do all that kinda stuff.
Everything that you need it's all on how you want -- some people -- let's say if you don't like you know being bothered 6 AM they'll they'll do it accordingly if let's say if you want them to starts.
At 6 PM and go till -- 6 AM they'll do that if you want them to I mean it's it's really up to you and how you want to delicate there at your service for forty hours a week.
So how do how do you if you're going to -- sign on here a couple of concerns jumped to my mind.
How do you know did the qualifications of them since you're -- them not my business and secondly.
What about privacy concerns.
They're all actually in fingerprint offices so just I mean just to get to the office there actually and one in one office they're not just you know.
Working from home and cannot -- without winning everything is secure a 100% everything is backed up as well sunny data that you have you don't have to -- the risk off.
Off often lose a gift or a point to be compromised so it's not a true virtual office could all your staff is in one place.
And and the reason why we half that is for the security do I ever get to meet the person I work -- That they actually based -- and India.
So if you ever go there if they ever come here.
To write it to get on get on the phone with these people look at you gotta have some general for the people yes yes well they're gonna keep your daily report and again it's all up to you whether you would like to have it you know at 6 AM there they can call you at 6 AM.
You can call them any time I mean they had US -- numbers but for a thousand dollars a month right that's the -- yes full time.
What -- what am I getting -- for a thousand dollar your your basically getting college graduates or -- BA's.
That's your discretion you can have them let's say if you have a business idea.
And you want them to market at let's say the the biggest thing that we entrepreneur -- have is.
We have an idea and we need to market it needs to be sold -- weather weeds its selling business to business.
A -- or whether it's selling to people.
So I -- I'm -- go ahead.
Well then you'll get on the phone with say suppliers and call out he'll get on the phone yet saying don't let -- -- -- that all stores and try to get my -- in the stores wolf first the the first thing that they're gonna do is actually sit down with you and get a get a get get down more to.
What -- would like let's say if you have T shirts.
What do you like what you have currently do you have currently a database off off people that that you'd like to call are you approaching businesses are you approaching.
Shops what what exactly businesses are you approaching.
And then actually gonna start working and actually compiling the whole database for you and then it's up to you whether you want them to start calling them -- -- it -- out of.
But it's ZZC.
How EEE helped dot com.
We went over a little bit because that was just -- -- yeah thank I locked down relax.
Have a great pleasure weighs probably back tomorrow that will be talking more wild -- I'm -- That there.
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