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Well it comes to turning a profit -- history tells us.
To be bad right we take a look at the business of sit in this hour things we know aren't good voice but we -- anyways.
Like -- and and smoke and eat in fast food reading too -- celebrity gossip you know.
Stuff that makes life -- the right car.
We -- these so called sin stocks Casey not professor in the willing George program -- -- university joins us now from Florida.
Now preventing -- studying the performance of these stats and you say there's actually an opportunity here that a lot of people miss at least since stocks or move that.
Many first verify -- and stocks are a picket since stocks are stocks.
Socially controversial product.
They have a model.
To profit from.
People is addictive.
And sinful behaviors that example is our.
Alcohol about cold gaming.
Filed -- And the most reason for the adult services.
Do not approve of them because they.
Take advantage of witnessing human nature.
And the do not conform to social standards.
And we did a study.
The look over.
300 since stocks.
Across 21 countries over thirty -- year time period.
And stocks we -- who -- in the sixteen district just mentioned.
I have reached the stock in the sector.
Has previews of 19%.
A year return.
When the -- made 8%.
Well a lot of another way that the fact that I'm not giving up my advice right I'm not smoke or not give it up.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- site it's it's it's I got left is that part of -- -- Exactly.
This is the reason why people.
Nation this -- stocks so thin industries.
When you lose a job.
In -- stop smoking.
And he may drink a little bit more.
And -- then.
Even now you have time more time to spend at local bars and even gamble a little bit to escape.
Now all in stocks though it well though because some of them he has -- -- -- tobacco stocks drink -- alcohol related stocks have done very well in this recession.
But some -- haven't performed very well -- are starting to show cracks right.
Exactly now -- -- -- the recession.
But the consumption pat and I just nation.
Well hope to delay.
Office's stock cern turning down -- the reception.
Many business cycle is in the 37 -- -- we look at.
And -- we found have reached this -- stocks led the recession about seven months into recession.
And on the other hand they tends to need.
Six -- all of the bottom -- the market.
And just give you some perspective.
For the last 37 years the stocks like gaming stocks and weapons stocks.
They have learned something like 30% a year on average.
Go back -- and Biotech stocks they or making.
Plenty over 20% the -- even just adult services and alcohol -- they were making it even hiking.
See you got good stocks -- like yeah GO Reynolds.
Pack even -- those are all doing fairly well holding on pretty much through all this.
He also on the -- the we are just -- coming out of -- Very significant recession.
Okay and this is one very special case.
And while we found is they tends to.
In general that these type of stock tends to -- Slowly react recession and it come into coming out recession quickly than average stock car ever.
This is historically.
Large reception a recession we just -- experience.
And and kind of all -- off your -- for the last.
Two years cities last year pretty much all the stocks this is or virtue lawyer which stocks.
Dole went down was the market.
I love it in a lot a lot of people who -- cut back even on their students unfortunately.
But he studies -- Goodwin and it shows that over time these stocks do fare pretty well and -- teaching and so then you know.
That idea as young yet -- after but the message that you semis Casey not investor in the room in the garage program at Stetson University.
What is the most well known that this in sectors in the market is the tobacco sector which we just -- done.
Despite a drop in sales -- in the US they've actually seen growth internationally.
Our next guest is -- senior vice president public affairs for the second largest tobacco company in the US -- -- Reynolds American.
Thank you so much for being with us.
Rob -- and senior VP public affairs at Reynolds joins us now okay so are the first big question is.
Had you you haven't seen any pull back at all during this recession.
I got to believe you might have even seen an increase.
Well when you talk about a a pullback I think it is fair to say -- 2009.
What the challenging you're four.
The industry like a lot of others.
Not only -- we have the economic.
The environment but we thought in April live here a extremely significant increase in the federal excise act you can it's actually both 250%.
Increase on the cigarette side.
So we -- CAA declined in the cigarette category volume in 2009.
Of almost 9%.
In volume terms.
On the other hand.
The -- side of the industry we've.
Continue to see growth historically we've been roughly a five to 7% increase in and that part of the business and and that but when you think that you -- slope left.
Yelling like -- smoke I thought our White Mountain and from new categories like news.
That have recently.
What about some advertising I know it's always been a hot topic about what you can and cannot -- and there have been some changes even in the last year that affected things like smokeless tobacco.
-- -- How do you keep up with that because -- -- you have to change your strategy almost in this strategy.
-- we don't view it that way -- -- we obviously over the years have seen a lot of changes in terms of the regulatory environment and of course.
Last year we actually.
Came under FDA regulation.
But -- -- from a marketing perspective.
Really it's it's about how is that that we can most efficiently.
Reach our our consumers and while some of the much points as we call them.
Have a -- over the years at the end of the day it's about ensuring that we've got position in a message that is simple focus then.
Relevant to our consumers and I think that that's really really.
Speaking of regulation rob let's talk about these states.
And how other travel and -- the cigarette tax is probably come and it might even come -- -- federal level who knows but as a country are cigarette tax is on the very low end.
You got countries that -- -- you know imposing a 90% tax on cigarettes.
We're probably going to see something like this it whether it's at a federal level most likely at a state level -- were you going down the line.
-- as I already mentioned we've already seen it very significant increase in the excise levels but at the federal.
It was again close to a 150%.
Increase in the federal excise tax on cigarettes and of course we -- -- activity on on the state level as well.
One thing I'd like to point out here is that.
Smokers and about the users in general.
Tend to -- lower income.
And so we're talking about.
People that are already struggling to the greater extent than that these types of taxes hit them especially -- very much regrets has been in nature.
With that said though -- I think you know we got -- portfolio in place what we call our quote about the strategy.
That if that fit that about whatever the the opportunities -- or whatever the environment -- so in the case of -- -- brand like Pall mall which very much stand for a value.
Longer laughing cigarette butt and up honest value consumers are really resonate through and I think accounts for the significant growth we've seen on a -- like that now the number -- filling in brand in the industry.
A friend like grizzlies in and moist -- again represented an honest value.
That -- -- future growth number one brand in the in the category so I think those are examples of when you've got -- -- about those -- a portfolio -- accommodate.
Regardless of what the external environment looks like.
Rob for giving it an analogy.
I think this works.
While a lot of the beer companies came up with the nonalcoholic beer for example because it ever was always on top and whether -- from the health industry -- -- regulatory issues.
I don't think there's a real alternative for particularly smokeless tobacco out there that is really -- -- is that something that the tobacco industry is looking into so that.
You know when the -- is all the world is on your shoulders and analysts say and don't use smokeless tobacco -- than that doctors are saying that those lawyers -- say that you can say well.
We have an alternative here for you I don't think there's a viable one there are you working to produce one.
Well I you know I I think it you know at the end of the day we wanna go back to ensure that we have it dialogue and of course federal regulation back allowed that they have that opportunity to have this kind of discussion.
Directly with with the agency.
We certainly do believe in the principle of informed choice and you know between.
Cigarettes and smokeless products we we do think there's a lot to discuss there.
I will note that very recently Reynolds American acquired political nick -- -- which has the produce.
-- can replace -- products that in in Sweden and Denmark.
Very hurt early days -- on that front but you know overall we are really looking forward -- the opportunity to be working with.
The FDA on these types of questions.
Rob thank you so much free time we appreciate.
All right thank you rob Dunn and senior VP public affairs at Reynolds American incorporated.
He's -- -- the argument with a cigarette tax.
And I and I just cut you off is regressive many won't make that argument that it's.
The federal level they just -- it up last that last spring and now the state level as you said they're gonna look for revenue as well and they have the ability to do that also I can fast food.
Really be diet friendly the Taco Bell -- just the latest of fresco menu we talk to the man who started it all at the subway diet that's right Jared.
Joins us when we come back.
Hey welcome back OK from apple -- that McDonald's which by the reverend good to have fresco menu to talk about fast food has been -- into this -- -- game.
-- -- trend can be traced back to one man who -- -- says -- -- now joining us from Miami this subway diet spokesman Jack.
-- and Jeff -- CEO of subway franchise advertising.
In Fairfield Connecticut yeah yeah.
I'm actually really -- you -- you gotta tell everyone quickly how it started could you really you weren't just in college in you're like.
I gotta -- -- -- sat out.
-- you know is 425 pounds back in 1998.
I had a sixty inch waist and now is obviously needing to make some major major changes in my life in the college kid -- went to Indiana university at that point in.
Actually happen to live next door to a Subway Restaurants.
In literally after many many years of failed -- of losing late night walked -- that subway restaurant and picked up nutritional brochure.
Added up the fat grams and calories up outlook that -- that they had.
And it's sort of send myself you know maybe a priority system twice today this could be a way to actually help him in some way and sure enough.
Started -- -- -- -- that's for lunch every day.
But -- veggie sandwich as for dinner in the evening but no mayonnaise of course -- -- and she's just kept a low fat low calorie and after back -- the -- chips in and a diet soft drink and -- years' time was able to drop about 245 pounds total.
But what's your -- horrendous to begin -- Oh yes before this -- -- you're talking I was eating over you know 101000 calories today probably it was never what they got a supersize it with how big could it supersize so.
You know I had a mentally change a lot of the way -- -- -- as well.
Jeff did you contacted and shared contact you did you find out that he was losing all this wave via subway -- -- they've relationship begin.
And we move forward from that point.
Well this kind of interest -- because subway had ate sandwiches with six grams of fat or less but we really.
Didn't have a way to communicated to the to the public that they can relate to.
And the friend and jeers came back from being away from school wrote an article for the Indiana University paper could barely recognize Jarrett got picked up by the Associated Press -- -- Men's Health Magazine.
And our ad agency actually read the article and so we gotta find this guy and see if he if he did this with subway sandwiches so guy flies to Indiana.
Goes to the subway says have you heard anything about this guy the last the way the guys together -- -- he ought to be here in about fifteen minutes.
And -- shot up fifteen minutes later they talked.
And they -- plane ticket to go do a commercial because this was right around the holidays and they knew that if you didn't get the health message out by you know early January it was you have to wait another year.
And rest is history.
-- -- a single mother with three kids I will not do fast food but we do subway my kids love it we do the drive through and let me tell you what I've noticed is that.
Now you can't walk into the store without notice in the caloric intake of just about everything it's on the napkins.
Everyone is noticing it.
Ever is concerned I guess is what I'm trying to say so -- going forward now are -- continue this big push of where the healthy ones.
After first bless you for being a good -- we appreciate that thank -- and it.
You know what when -- -- you look at all the things you try to solve for -- whether it's health care costs driven by childhood obesity of these people diabetes etc.
It's health is going to be a growing need and concern and we're well positioned where the leaders we get credit with the consumers because we're really credible it's not kind of a fads that we just started doing.
It's been -- -- -- for over a decade -- to our business so we absolutely think it's gonna grow and we love where we sit.
-- -- there's a lot of pressure on you right to cut not your spokesperson you know you're.
Even if you.
Goal off the payroll at -- -- subway you're still going to be the spokesperson for life essentially sell.
Do you feel that pressure you recently put on forty -- he kind of got off the wagon.
Well you know I'm 32 now I'm you know it's it's tough for obvious if anyone knows -- you as you age metabolism slows down a little bit.
You know I got a little bit to relax I guess last year but.
You know jump right back on the honest the authority subway quite a bit more gotten -- in -- -- get my way back down and I'm actually this year only am I going to you know -- my fighting weight but I'm actually starting to -- trained to complete.
The ING New York City Marathon later this fall so excited about them hoping and raise some money for my foundation which is that your foundation to fight -- -- the on the way.
And you know hopefully this gets an inspiration and -- -- people who say hey you know what -- -- guy can complete a marathon.
I shouldn't get up the count myself in things are getting healthier and of course incorporated subway sandwich is in the life as well.
Okay -- when he thing about the competition now now we got Taco Bell it's.
Taco Bell healthy I can't even say it's -- -- in the same -- -- -- gonna cut corporate gonna come down on me I now but it.
We think about this he -- a little phenomenon here.
And actually you know it is it's good for us -- it's good for of the population when more people provide healthy alternatives.
But we know it's just for most of them it's kind of a secondary afterthought trying to jump on the bandwagon for -- -- really is at the core in the heart of what we do so -- I think you know the more competition the better.
Jeff how how difficult -- -- to really believe -- provide.
-- -- Choice that is also tasty and also good value and it's got to be a big challenge to be able to incorporate all those things because that's what you gonna do to get people to keep coming back because like you said.
You get Taco Bell you've got you know all the other -- certainly all the other fast food places are starting to jump on the stand right competition.
Kelly it is getting tougher -- what's great about our concept though is it's all about choice and customization and we've always had of -- plethora of vegetables you can choose from fresh Brad.
She's if you want it not if you don't want it.
Sauces that range from -- -- vinegar with no calories to -- if that's what you want.
So ours is all about the ability to kind of -- the -- what you want you can do over two million combinations in the -- -- never get bored.
-- we actually met -- I've -- -- if if they -- valid.
OK got news for a five dollar -- is not only staying.
This weekend we're back doing that at -- sub for five dollars any regular sub for five dollars to show appreciation to our fans of subway.
She can go Lyndon and I get wherever you want.
-- be a limited time program but this will be the third year in a row that we've done any sub and then once that promotion is over we still will provide.
-- a multiple -- for a dollar for five dollars.
-- -- typically about eight per store that you can choose from and that's just part of our core business -- fact they're actually now three years into it the fault line five dollar follow on in and of itself is a four billion dollar brand.
While we appreciate you guys stop the dominoes yet Jeff thanks Jared you're in Miami now you got there for the Super -- I'm guessing you've got all kinds of big -- -- that I go to -- Well I am -- -- from Indianapolis you can imagine obstacles.
Cannot be more excited be down here and hopefully we're gonna get the the big victory -- -- I I guess I didn't see this -- there thanks a lot.
Najaf network delivery.
Well yeah you have to come got that are not calorie I -- -- got -- -- -- -- definitely CEO subway because advertising and Jared -- of course spokesperson visibly thank you gentlemen.
Thank you ever think all right greed.
For lack of a better -- Adulthood.
He said that I'll.
Go all riding -- yeah.
How about real movies like because sleepless in Seattle and whatnot and -- had a good test anyway.
-- I could get a good as we come back on the green.
What -- -- -- is good.
How it seems as.
And cuts through and captures the essence of the evolutionary spirit Gordon gecko that was 1987 of course from Wall Street.
One Wall Street to -- come -- out 20th Century Fox put out.
The movie's going to be great and we -- -- -- looks it's got to be fantastic and another Gordon tech all right well we've seen and on Wall Street Ponzi schemes we've seen.
How we see it every day we've seen in just the last week.
Hundreds of millions of dollars in bonuses being doled out.
Greed apparently isn't going anywhere.
-- Mac is here with us to talk about greed on Wall Street -- green around the country in general -- part of the evolutionary good I am just merely quoting Gordon -- pints in the eighties of course -- All that win but one could argue that greed is an important part of capitals I'd rather watch sleepless in Seattle -- -- and mind.
Thank you so what is it about read that upset and not that stupid Wall Street movie -- -- tech lost.
Second -- and and an address to the godfather well wolf go to the second one and -- -- -- -- believes that the darling tell us greed.
Why is still around why does it continue to look at -- never on legislate out of existence corruption.
-- outlaw Washington races to do that.
You know so.
You know -- -- look at what happened with.
The crackdown on corporate bonus -- right.
The they have analysts very.
LB hand -- commissions and washed and saying are we gotta give it put it to shareholders -- -- the vote with non binding.
Right this so this is all -- force of a goose feather.
Got to Washington and you know and in the run up.
To the bubble.
Goldman Sachs Bear Stearns Lehman Brothers Merrill Lynch Morgan Stanley and -- about 310.
Billion dollars from 02.
A lot of money.
About -- -- McCain and legislators adamant that what do you legislated out of exist because I'm really not let's say I'm John -- it either way -- do you want -- you just can't get some policy isn't that you know Larry -- -- that -- -- speech I didn't think that's what capitalism -- -- I think that's what humanity is all about you know what it's about -- So what are -- -- crony capitalism it's about not capitalists and keep people muddy the waters here.
Can't credit capitalism is not capitalism.
I ain't so to what form of capitalism do we want interview that -- Chinese officials saying we see capitalism with socialist kind of in -- flavors -- it here in America China official in China's.
So you know.
What do you -- -- kind of capitalism where we beat the smoking wreck the companies behind them and you and I every -- taxpayer -- to bail amount we've become their capital cushions now.
-- -- -- at Bank of England official guys just -- with an interesting.
And he's talking about how if the company's during the day the bubble had just set aside 10% less.
And at seventh and got 10% they're gonna -- pay and bonuses and put in the capital right.
They would say fifty billion pounds over in England no that's about equal to their rescue and a 118 billion here in the United States which is about what -- may cost.
You know taxpayers we don't know yet what the final tally -- -- -- But they just set aside that amount and we cut their bonus pay by about 10% and were more prudent with their capital cushions we would have not turned into their capital cushion.
Based on the numbers you gave us during those over you know those but years ago was what drove them to keep making money so they.
Were pushed by greed.
The stock market went we all benefited fantasy but anyway we've been -- -- -- almost in the because it also that's what drove him to take risks that were unnecessary so it went to a.
Angels went too far -- -- It went too far because look -- guys down on Wall Street and it's been ever of us who are about as crooked as Beckett cork -- okay.
And we -- what kills me is a look at what this crisis is about is similar to the crisis and I hate that drug personalities analogies that -- -- Nine elevenths a colossal failure failure of imagination.
In these securities exchange commission -- commission needed to know their history and that is the bucket shops of the turn of the twentieth century where he had -- speculative trades.
Being carried buckets down to the Wall Street the nickel -- copper cornering at a market which led to the in -- they have the Federal Reserve Bank being established in 1913 I mean this is economic Wall Street history that the market regulator somehow forgot.
And somehow forgot that this would he would come up and again and again and again he -- the -- core commission.
In the -- again speculative trades against speculative IPO set aside for favored you know government officials and Wall Street executives so.
It's it's not a -- we're not you know it's sort of forget our history.
Don't forget to keep that vision intact where you you have you know big people with the -- a fall.
And the foresight to know and the history to know that this can happen again and to watch out.
You know I talked about this morning on bonding company.
How do we determine -- -- who's in the middle class whose wealthy who attacks who not to tax we think about we're talking about taxing families and make.
280000 dollars a year or more.
And yet in the last week I've seen.
-- Tom Cruise buying a 33 million dollar house -- and spending six million dollars to renovate I saw this guy behind is walking and sculpture for a 106 million dollars.
If you can afford to buy a walking in sculpture for a 106 million dollars you can afford to pay more in taxes so that's one thing but on the other hand you say -- that -- punishing somebody.
For earning enough money to buy a 160 million dollars -- execute what you're talking about it speaks to the human spirit and you know and we thought for example with the Martha Stewart.
And chronic scandal and that is -- something with human beings they just can't get let that last tree -- They just can't let that last -- him.
Attempt at getting you know I'm more money end Adewale that's at all on that actually you know -- -- extra 5000 -- whatever the hair -- will be.
That they can get out of somebody -- selling their house.
You know war in order or some stock -- so some way to work recorder some -- they can work -- -- it -- in the human psyche that that is about and -- it is an agency it's on so many people would say I'll never become that -- yet it does happen you know actually happens with a series and they -- you can never be too rich content.
Because it's just in you to just he I mean it's never enough and when is enough that's right.
That's right and and that's when he got it I think that Wall Street a lot people -- a lot of soul searching I think this collapse really altered.
I think it fundamentally altered how people you know.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I don't wanna turn yellow jaundice but I don't mind being cynical mean that as long as I don't turn yellow jaundice that.
-- and it's very yellow from eating all the yellow peeps.
The yellow number five Penelope -- appears -- a job of governance and emotional needs that is yellow -- box office certainly they've taken now they did you still can't take you up maybe thanking him being a -- and I kept it clean and green -- know -- -- ultra easy birdie -- -- lowered -- idea that we didn't -- or not.
What are we can't we do agreed we did smoking we got -- not about drinking and Amylin L again.
-- -- -- All right welcome back America.
Obsession with celebrity -- created does star magazine's us magazine certainly created web sites and and TV shows like CNZ and even enabled.
A group of kids from the northeast to become instant stars.
Like Snooki and the situation and jwoww IRL -- -- love the Jim Moran president 20/20 assessment joins us right now from Dallas to discuss the obsession.
With the celebrity.
It Jim has it gone too far just in the last three or four years it has exploded.
It has exploded and you know we don't have a lot of longitudinal data but with the rise of technology.
Celebrity worship has gotten worse there's just so much information that we can get at our fingertips that this is just unprecedented.
Welcome any blame Twitter and FaceBook as well right Shaquille O'Neal tweets that he's got some rest on the place is -- Everyone's following each other and the craziest part of -- is that.
Think you -- but we wanted you all -- so it's a little bit of like her.
These celebrities themselves think that it's important that I -- you know that they I know that there at this restaurants are the celebrities creating this as well.
-- they are but they're responding to what they think the public wants.
And the public does want to feel connected to celebrities we want information about their personal life not just their professional accomplishments.
And we're in a weird situation here -- celebrities are now in competition with everyday people exactly reality TV YouTube.
Families and friends so now they're having to up their game just to get our attention.
Yet that was -- it in my next question that the idea of a celebrity has changed -- you know I think.
The Paris Hilton's -- the world certainly had a lot to do think he will be famous all of a sudden just for being famous not for doing anything.
That was spectacular or special.
Exactly set -- has been sort of -- nowadays you used to have to be different from everybody else to get attention and he looked up to.
Nowadays it's just whoever has the microphone and they are so many opportunities to have the microphone.
I think -- -- so over the top why are we so obsessed with knowing that Shaquille O'Neal is that some steak house.
I'll go first I'm not upset that -- -- where he's yeah yeah there.
But but people are -- that's because you know celebrities they still so much site.
The logical need in us.
They help -- 68 from problems they entertain us but we also start thinking that we have a relationship.
We start feeling that they are friends and a lot of ways for many people.
They replace real families and friends that people having their lives so they're building a psychological need and while I may -- unusual to most of us.
Our research suggests about a third of the general population.
Has this unusual attachment to celebrities and I think it's just gonna get worse.
How well we talking about other health risks associated with this I mean aside from just the fact that hey.
Yeah I mean I tell somebody get a life but and -- and -- and get a -- and -- serious -- that.
Well sort of yes you know a few years ago -- -- the term that was thrown out called celebrity -- syndrome.
And my research team was blamed for that term but I never introduced -- I never said that celebrity worship -- some medical condition.
But that being said.
Taken too far just like anything else celebrity -- candy and addiction and it can take over people's lives in ways that.
Causes serious problem so in many ways you.
People do need to keep it in to check because they can get out of control very easily.
Gonna get worse though I mean because as you're saying celebrities need our attention.
And now you there they have products to pitch to your right I mean there's a reason that women around the -- -- -- -- it's all because of sex in the city.
Well it is and remember celebrities don't just reach us through the yet TV they reaches through the Internet through radio through the print.
They're often trying to impact our everyday decisions from voting to consumer products.
So celebrities are all around us are probably the easiest to obtain drug that we -- -- United States.
Tim -- president -- when he assessment from Dallas thank you for being with us and I I my pleasure do not really care where Shaquille O'Neal eats dinner and then narrowly last.
-- I don't now that the and -- you don't now I have I have no interest at all in any celebrity's.
We at all period -- can thank you Jim thank you so much.
-- according -- gambling now it is rumored to be the next great revenue generator and many people argue it can be if they legalize it.
Online gambling in particular can be such a huge revenue -- our next -- seems to think so.
Professor John King is professor of business and legal policy at the University of Illinois joins us on the phone right now professor thanks for being with us.
I like we're having -- right yellow -- Yeah it's going to be icy all over the place isn't it -- John the next these next few days.
Now why do you think it's -- would be so bad if gambling were legalized because I'm thinking.
Are you did you take the mafia element out you take all a lot of the criminal element out -- -- -- it's all out on the table rights.
These issues have been coming up for years and years and they'll go back in the 1990s we had.
US national gable did expect conditions it is basically that that there are a lot of negatives associated with this -- that concert with three dollars.
For the taxpayers.
Every one dollar and Democrats.
And now we've got Barney Frank and the house financial services committee.
Proposing that next speculative bubble they weren't satisfied with being largely responsible for the sub prime crisis.
Now they're proposing he regulating.
What was -- gonna regulate it.
It -- on the Internet right well let the National Commission says -- got a prohibitive.
It doesn't lock you can't regulate it and we just have a new red flag reports -- the university got bought 3000 pages brief audience.
Which doesn't say -- that that's even worse.
And we had seven years of congressional hearings on this -- what we passed the 2006.
Unlawful Internet gambling enforcement act.
-- which gave increased enforcement authority to the banking industry US Justice Department in other enforcement -- mechanisms.
But so are you know people professionals like any duke.
Police Blair alliance spokesperson she testified in rent -- house judicial hearing on the online gambling she is -- it.
This could actually be it fairly decent revenue raiser par states as well mean since you haven't poker community behind us.
Well -- -- Okur is not the name of the game here.
What we're talking about is gambling at every -- yes.
It every living room edit every school that's been in young people are short -- with gambling addiction rate that the older generation that is evident.
The national gambling impact study commissioned the new 2000 nut behind united states international -- -- report.
Hundreds of pages on this here's a testimony from the Justice Department and otherwise.
But it just doesn't work it's going to create huge social and economic costs.
So that's where your costs having to that was my next question is the cost in regulating now if it becomes legal was the -- -- after the fact.
Almost from a health standpoint trying to get these people are addicted to gambling off gambling or out of financial difficulty because of the -- they've had.
Yeah good point suddenly the national gambling impact study commission which had a lot of pro gambling people -- looting members from casinos.
Indicated that you can't regulate this Internet gambling -- have to prohibited and keep the probation and quite.
And that's because.
The -- mechanisms for getting a round.
The -- that we already had -- our.
I didn't work work hard and entrepreneurial groups that are already trying to work what's going on here we're really not that we're we're we're not talking about poker.
We're talking about electronic -- like that's 90% of the revenues have.
We're talking about here -- -- seeing reports on sixty minutes and elsewhere what people are being cheated in Internet like.
If only to remember -- official position of the Justice Department as well the FBI.
The gambling on the Internet is illegal it would hit cyberspace is illegal and are over thirty countries that also have dance on gambling in cyberspace gambling on the Internet.
Because they recognize what we're talking about it is it is true.
The great one -- not a bad finish your thoughts are.
Now you UH -- -- -- point about the -- is going on Spencer Bachus.
The ranking member of the house financial services committee in complained about a 100 million dollar lobbying day campaign.
Yet this legalized darkness of the illegal activity 100 billion dollars coming -- If people also -- they ask people what -- gamble ought to ask.
If they're being treated fairly and regulating the slot machines as well electronic gambling that's going on already.
Well people like gable are they being treated fairly we have to have congressional hearing on consumer product safety Bobby rush's committee need to hold hearings on the.
So are clearly happy you know our congressional leaders are seeing dollar signs they -- they can make money up for this that's why I think they're pushing this to go forward as well.
There -- arguments he made that it's a little.
Little like socialism you're basically telling me I can't make a decision myself to make wise decisions about gambling so you're just gonna prohibit it from the altogether.
Go go ahead.
In the end does do here around the table type of -- what we're talking cable game.
Nobody cares about that we're talking about electronic gambling which 90% of the revenues of the world was thought -- -- they're talking about.
Enabling on the Internet.
This -- -- the crack cocaine greeting the Olympic gamblers because they have -- addicted gamblers in a doubling its like drug addiction.
Bankruptcies are up eighteen to 42% and areas which have this type of deal -- crime goes up 10% per year the taxpayer -- -- Daschle -- we expect study commission.
The new united states international -- -- report.
-- -- -- -- Only thing I could make a whole lot of money if -- work.
Simply say that this will work right other player lobbyists out there that hundred billion dollars -- a comment on this illegal activity.
I'm there are several others academics make a lot of money arguing the other side of the issue but we don't because the that the national statistics -- national reports indicate this didn't go to work.
It be great it would work yeah I'll tell you what what -- work.
Is that if you lower back to the video game clinching -- we have the electronic slot machines you would be dumping another hundred million dollars.
Into the economy -- you 300 million to half a trillion dollars in economic multiplier effect that would be pump priming the economy.
Gambling shrinks the economy it takes money out of the consumer -- yeah -- need and we see people spending money on consumer goods I didn't tell you know the economy.
-- -- -- -- money at a -- -- in college I decided that was clear I thank you professor Ken good to say.
-- professor John can business and legal policy because at the University of Illinois when we come back drinking.
-- from us this Bob.
-- welcome back.
Connor and burns are talking about old saying in this hour and I make money from it there's a lot of money money money be made out there Peter Christy joins us right now CEO.
Of disgust that's distilled spirits.
Our council of the United States wanted to show Peter.
And glad to be -- it's it's pronounced discus.
And I assure you it's no -- of it's done in moderation.
Nice thank you very much for that's a discus is how it's pronounced the Akron and -- tell me -- and through the liquor industry in general has done in this recession.
We've done all right.
You know we have two elements the on premise side which is the restaurants that -- hotel's side.
And that's taken a bit of a beating as you know the hospitality industries probably lost 300000.
But the oft promised the package store side.
Has made up for.
And that side.
Has had the volume is gone up.
As the 21 and older population has grown.
So we've held our own.
Particularly considering that this been a very tough recession.
Drinking habits changed are we doing -- different things now.
Well I think it's more at two things one is I think first -- -- it's more where you're drinking.
There's definitely been I gravitate and away from eating out.
And when you when you're not eating out when you're not paying for that luxury then you're not drinking out.
So more of that has gravitated to home.
So we've definitely seen a return.
To the home bar to folks getting more and making.
Their own cocktails and that's not a bad thing we think it's it's good it did it enhances that.
Sophistication and romance of of the cocktail.
The other thing is there has been a little bit of trading down -- no surprise we've certainly seen that in everything from.
From automobiles to food.
Folks are not quite as much into the luxury items as they work so they're not quite as much into the super premium.
I will say this.
We think we -- just a little bit of a turn around now so that's goodness.
Is there is is their values -- some value in the middle area there because -- for awhile.
Everybody wanted to get the most expensive -- a -- all wanted top shelf.
Is there -- -- a big push now in the industry to find that middle area where you can have a very high quality product but also a good price.
Well I think that's one of the Smart things about this industry.
I it is well positioned.
To meet a variety of pocket books and a variety of taste.
And there had been some folks who have kind of -- down mean from the super premium to the premium and there's still.
Very good products.
At that level and that has certainly -- the industry I'm moving forward -- a little bit.
Despite this very tough recession.
What is this celebrity world done for the industry could -- get.
And I mention sex in the city earlier and mentioned it again and it cosmic -- is hot again right.
Pete and we need is vodka -- John -- -- so -- you know in great makes vodka that cool skull.
-- all that done if it had to have help the industry.
Well I think different marketing themes have evolved around celebrities.
We we certainly saw that a little bit with cognac.
And that seemed to help them.
We've seen you know certain kind of movie movie placements and TV placements -- there's no question it.
A sex in the city.
Did a great deal for the cosmopolitan.
And for vodka and general picture.
We were talking about it with tobacco earlier at what -- the impact been on taxes because states need revenue.
Those municipalities everybody needs revenue these days and certainly they'll they'll look towards the alcohol industry I would imagine that but for some of that revenue.
Well you're absolutely right oh they do and it's kind of -- -- if you if you look over the last 89 years now we've seen about thirty serious threats a year.
Last year that ballooned up to what I would call forty very serious threats.
They were actually -- 120.
Separate bills tax bills.
-- that we had to fight back and I'm.
Very pleased to say that most legislators get it.
That it is not an alcohol tax -- -- hospitality tax.
If you tax the alcohol industry you're taxing hospitality industry.
And that is gonna continue to put people out of work in the restaurant hotel and tourism business.
And interestingly enough.
Out of that 120 we only lost six of notes and any effect was was immediate and dramatic and the Massachusetts.
And passed a sales tax on top of their state excise and federal excise taxes and immediately business started to gravitate.
To New Hampshire.
Passed an additional state tax.
That was on tap on top of -- -- county tax on the Chicago attacks and Chicago continues to suffer in the hospitality industry.
But the good news is is that.
The economic arguments that we've been able to make.
About the importance of the hospitality.
To jobs in this country has resonated almost everywhere and that's the danger on concerned about in 2010.
Right be a grave mistake.
For state legislators to.
Gravitate to see if they can whack another.
Peace attack especially -- -- spirits and care -- -- spirits is taxed more than beer man and three times as much.
And they're gonna make their case -- Peterson keep fighting the good -- you're crazy CEO of discus Distilled Spirits Council of the United States thanks to be with us act.
Happy to be here thank you -- As we make our way -- the seven deadly sins it's time to take a look at vanity.
The rise of the Internet has given way to the demise of privacy wouldn't.
Meaning there actually while sites like FaceBook MySpace and Twitter great for communication also provide an avenue for self promotion and yes I'll say it over -- there.
So social networking helping to read a culture of narcissus.
Let's ask CNET -- That's -- ER not this is an -- she is also professor at San Diego state university and she joins us via Skype.
Jeanne thanks for being with us omelet yes and I said earlier yeah -- tweet about how he can dinner won't play.
-- Right yeah that happened tweets that happened now is -- -- for breakfast and I are you know what trivial thing that I -- Yes you know.
Most people on these sites are not necessarily going to be that -- but if you spent any time on Twitter or -- -- -- state.
You notice there's a minority of people who do you seemed a really want a lot of attention.
And they post all the time -- the captain emphasized -- certain parts of their personalities.
Where it's always about how -- and I -- picture and it looks hot really hear your name at the party with a cool.
Now the other part about this though is some people I -- -- on FaceBook you're not on -- but haven't you -- you tweet.
I'm a lawyer.
Okay but here's the thing.
And it from a professional standpoint we are encouraged to do that I think many people are also if you were getting in the day and age -- -- encouraged to be out there amongst the people all the time.
Yes yes that's the interesting -- have to strike because.
You know when you talk about nurses says -- One of the first questions I always get.
Games but don't people have to be narcissistic in order to be successful in this increasingly competitive world.
And I think is yes you you have to self promote and you have to know -- and T your abhorrent and do all those things.
On the other hand if he can get Q much -- -- annoying and then nobody likes -- and that's not gonna work out I'll record in the long run for success.
So -- I avoid becoming annoying I mean you know in this increasingly have earned a narcissistic world had -- Weis say to myself all right I don't wanna be that person.
But yet still -- he'll be out there a little bit.
Right so you know I actually think I think that you're theme here is it's quite get to speak about the seven deadly cents and tried to avoid -- -- I -- interstate you're -- -- he had the seven deadly sins are all related Q nurses and sounds so pride and gluttony and Everest and all of Lindsay you've been talking that.
I come along with that personality -- So you really have to do is just find that that balance there and try hates you -- promote.
You know -- it's honest and -- -- way that doesn't overdo it right in and dust.
Really be able to be more successful because you heard telling people it's -- -- but you're also.
Not coming across as overly narcissistic and -- center.
But it's a lot diminishing returns I mean you -- this in economics class -- the more you put out there that too many people to may be able to follow people bragging about how many followers they have.
You gonna get to where you say I'm not even going on Twitter anymore.
-- -- -- -- -- -- -- -- -- -- -- swing the author of the Norris this is an epidemic and professor city of state university speaking the seven deadly sins I'm about ready to commit one sloth.
I watching everyone.
We'll see you next week -- a missile off the -- -- doesn't.
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