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But -- foxbusiness.com live Tracy Byrnes Chris got -- -- -- that at Dow's down about thirty points we get a lot of information actually this morning we got.
Residential sales not so great we got oil supplies war lay -- came in is until -- We got of course the aftermath of health care going on -- manufacturing them are pretty good pretty within its sewer with it's it's -- a dividend for the first time I have not I know that some.
Starbucks has really been ever since mr.
Schultz came back there to take over at the Helm -- -- -- that growth.
In checked in more than just going crazy they cleaned up right they would try to be all things all people and I -- this Christmas is you can't do that so they got rid of rankled extraneous garbage that cleaned up the should be station can that was a big -- when actually they were -- and please go.
Now it's coffee.
Couples announces its settlement they know it's edited it and it's still morning coffee though it's still way too many shies away extra -- that -- too much stuff.
They should have two lines some some on did you have two lines with the -- and line.
One for all the truth he crap and the other for coffee.
I want coffee large medium small coffee did you get all the other stuff over here yet but just coffee.
No I'm Dunkin' Donuts what might I drink it look I drink -- Duncan donuts Starbucks.
Green room coffee whatever the case should be about and find anything with caffeine and I'll drink it but Mike the and so -- you wait in line and he's dispersants and -- cream on there and and good pumpkin something or rather do one line for those people can -- you -- line for coffee drinkers and.
I'm not a Starbucks girl that's why I asked and we'll -- under bush Starbucks -- Dunkin' Donuts is what to do right now appears to me.
We also had particles.
Rating Moody's cut Portugal's debt rating this morning that's really how this day started off.
And we see the market is still slightly affected by that mean we're down we're in this concern still what's going on European Union.
Things are not well Greece is certainly not going away anytime soon.
We are bouncing a little bit right now yeah we're in worse shape about an hour ago and we're kind of hanging in -- -- -- Thelma joins us right now partner and Deerfield financial advisors out of Indianapolis and Dick Hamas Cuba -- it appears like.
Begin a mixed bag -- this seemingly every day in the market just sort of hangs in there we had our first triple digit day yesterday since the beginning of the month -- we haven't.
We have and he didn't barely -- the down day in two weeks.
Well -- for the market's concern you would expect this good about solo movements -- -- -- look.
People are feeling better about where things are going people are looking a little bit more positive the numbers and certainly gotten better.
So I think you're gonna have some.
Reasonable results over this period of time.
-- -- -- talk about a housing because we're hitting so many mixed messages on housing.
-- new homes bell and -- Beazer Homes reported in contact again fell to a record low in February.
But yeah we got housing permits up.
Residential contractors those stocks -- actually doing okay Linares have a nice day some of them are doing okay today so.
There's this huge -- going on in the housing market where do we stand as far as you're concerned there.
-- fired -- just address the market here the market here is so we've been getting better I mean.
The difference between Indianapolis is from where I am is is that we don't have any great ups and downs like the coasts where you are.
I mean you had huge swings up and down in the -- right now people trying to decide which way it's gonna go.
But from the perspective as far as new home sales here they were up 23% list this past month and so it looks pretty good in the midwest.
Take -- -- -- -- -- you really focused on earnings and jobs jobs there are moving anyway I think most people are are resigned as fact that we're gonna get.
Unemployment around 10% real unemployment around 17% moving forward.
What about earnings and we just -- -- get done with this earnings season and now looking forward to next earnings season beginning expectations going up in April.
Well certainly -- -- into this year are a whole lot better I mean they're looking at expectations are estimated earnings in the eighties.
If that -- you expect the market to continue to go up maybe in the thirteen hundreds though.
We start missing those -- projections.
And that's all possibility.
Then your regular is certainly -- -- to -- the market move at all in fact it'll move sideways or a little bit down a bit.
If I look at this your odds are pretty cautiously optimistic would be either way I would put it -- here.
If we go until further result is tax increases thought their canoe thought -- kind of things.
That I have a feeling they're -- -- gonna see the market move at all in fact we we might.
Who backed down mixture of Europe there.
So let's talk about that -- Health Care Reform long term to your point taxes will go up to pay for this.
What does that mean then we get a sideways market for a couple years or as you said do we go back down.
Well I think figure goes to the market actually -- producing you're this year but then -- always starts increases with the -- -- -- there's just one.
You got all the bush.
Tax cuts going away.
A couple of games going back off personal income tax -- back up that's all gonna.
Depressed feeling as far as the market is concerned and so.
You loyalists should get earnings continue to be good -- you'll seeing this market make a correction at some point in time.
Any other ugly thing of course and that we always have to think about its inflation.
And at some point -- that will rear its ugly head and right now government -- -- you'll probably that they want to inflation so the question is can they control.
You know what you make -- that -- Ben Bernanke obviously has a very tough task ahead of me -- -- walking a tight rope.
Over the next few months what's your prediction as to when we start to see it when a sudden moves and how drastically they move.
But I don't think you see any drastic moves this year in fact I think the long term projections for this year is concern is that.
You you might get a little bit but not a whole lot I think -- moves that will come will come.
Next year is if we're looking at the market and if they're the earnings continued to improve.
Then the economy continues to approve you won't see those phrases -- to lecture.
And and as they come they -- come pretty quickly but there's going to be a lot of political pressure on mr.
Two keep the rates low and they'll probably keep going -- to along.
And what I will rest of the world play into this we talk about how Portugal was downgraded this morning.
Grease you're saying was a bit overblown.
I mean things aren't done out there though Germany's got to be thrown into this then of course the UK has the issues of its own so.
How did that play out as well.
Well you got the whole European market -- -- got a problem as far as -- -- things are concerned we're going to look at the rest of the world.
As far as the emerging markets concerned you're looking -- in the incentive is certainly doing better.
There economies are or doing a whole lot better than have been the others so the biggest issue is the European market is for -- this thing is concerned and you know it becomes a question of which one balances the other one off I mean I don't think you're gonna have -- problem as far as.
Greece's conservative think bill bell about.
The question is who use them have a good domino -- -- some of the other one's kind of do the same thing.
Men -- you have a horse of a different color.
-- what's your lawns and view on health care.
-- -- out 34 years out and then beyond how bad though will this -- for our economy if that at all.
I think in the long run that they probably underestimated the cost as they always do.
When you go out when this thing really -- -- after 2014.
You're gonna but detrimental effect to our economy I don't know how else it's going to be they've always has underestimated costs.
I'm sure they have on this we'll also -- they talk about the amount of money is coming in well it's stolen -- -- -- couple years because the tax.
-- that we pay to win before the cost -- they have prepared go -- and further review rule out the worst is going to be.
Doomsday happened who -- thanks so much ambient well -- Certainly a little bit of a downtown -- it's nothing we don't that we haven't heard before Dick plumber thanks -- being with us partner different financial advisors Alan Indianapolis.
We're having -- the market is get a little bit better and -- -- Certainly not around here.
-- and wanna hear the opposite -- the -- of the about the better instantly and not the father -- other words it's gonna yet unfortunately that was set up -- look closer at all food nonetheless fast food a lot of burgers and one not -- yeah you know I noticed.
That's today down at the Wendy's here on the move -- can be tunnels underneath Rockefeller Center.
They actually had big huge sticker numbers that they put next all the burgers they literally had kept the menus of the way they had it you know all the bubble.
In and they just said -- we got to put -- caloric numbers up there.
Let's just take these big block letters in black and numbers and stick them up there as to how many hundreds of calories each sandwich has and -- that they -- they -- block -- half of the sandwich and think of the photographers and make a living -- make -- -- -- -- so beautiful and -- Now there are -- is completely destroyed.
And that -- -- photographers here to think so because of the new Health Care Reform is that why we're changing these numbers.
They're getting ahead of -- here because under the new health -- restaurants that have more than twenty locations which is obviously any fast food restaurant.
-- they've got to put solid at the display -- calorie counts right next to each individual food -- you know they have to be very clear as to what.
Food item has what calorie attached to it although they also had to make it very clear its distinct statement concerning suggested.
Daily caloric intake so this is how many calories it has and I take some -- that's a quote but it by the letter of the law they had to tell you how much.
How bad -- is can compare to what you should be having had yet so as a percentage maybe if -- told -- he thinks that that's what it sounds like Symbian.
It's a lot of stuff and I think that let me tell them because then you have big Mac 100%.
And that's what it's gonna -- right.
That's pretty much all you can eat all day long I've been like from -- -- -- -- is it just calories I guess is another pieces and help me it sounds like he's just calories but still.
The idea to have the percentage of how many calories you should have no idea -- and will it deter you if you know how many calories are in some Donald got no.
And -- it will it will have absolutely no it no effect on the -- debate and you're right I know big and it -- up counters until -- horse.
In in half a day I already know this and I yet I still order -- -- its over thousand.
-- I think it's right at a thousand -- a little of a 1000000.
How I still alive how might still here well if you downtown to other meals there's that and he could work well what do balance out what I have they -- And for dinner -- -- that's me and we'll figure that one out and I think a break when we come back we had a lot what are yet to doctor Bob is -- we've continued to.
Economy began evacuating -- -- -- later Jeff Flock is that in San Francisco he'll join us as well not -- -- -- -- had to make a little money -- going to.
-- bowl oh yeah that's important.
Welcome back we're talking about no free commonality -- stories got him.
Cannot -- this year and he's telling us about his Starbucks experience.
Some of them are good some of them are not so good I think that's what it comes down sit down to run on -- -- -- I honestly think that you you know you shouldn't -- and experience that I should sometimes if you had an express line.
But that's just coffee the coffee is really good.
And it's not over price I don't think for how good -- misery we just haven't express line we don't have to deal with all the other stuff that the so for someone there is just shoot a sub and obviously -- you give us all the outlets and on did you go -- we can't just sit there for a little while at the interview that quiet the driving.
Has the drive through hasn't really taken off on so long -- It takes to -- and I know that some around I've been missed.
-- before saying there's none near me there are some that.
But it it looks not a coffee drive through -- a Starbucks drive through and that's the difference in the Starbucks -- through has too many other things going on and it takes too long you just feel that people want convenience and that they don't have it to -- -- is doing some.
Right there right now they curtail -- growth a little bit there menus and they've sort of will Whittle it down a little more than manageable menu took on the food item.
And they're doing or did -- do it right I mean just announced a dividend say it's a lot better it is a lot better and I think and -- back at the Helm has really helped them as well.
Leadership leadership on and here's the other thing at the end of the day and this is not just to Starbucks story but I think it's something to think about corporate America sitting in so much cash they've got to do something with what are they.
What did well maybe start paying dividends publicity we have -- and they do we have an uptick in mergers and acquisitions.
-- and Leo that we haven't seen the employment -- but if you think about it theoretically.
And they can they can upgrade technology maybe do some of that that some -- -- some dividends insult but but my point is all that stuff basically pretty good for the stock market and the pick pick -- -- you want to put it and it of the fact that they're gonna have to put it somewhere.
I think supply and we still haven't seen top line growth so are they holding onto that cash because there are still unsure at I think I would I would say we haven't seen as much top line growth as we need to but we're we're seeing some signs of a but I would agree with Tracy not enough.
Part of it is corporate America is is that one of the drivers of top line revenue I mean that's the oxymoron it's like my gosh you're so do all this -- and start spending it would see some top line revenue growth.
I think we will see a little more top line revenue growth coming from outside the US so our exporters I think they'll continue to do.
Very well I think actually the global economy.
Probably surprises on the high side I think we're focused on all the wrong issues I think the focus on Greece and contagion is gonna most investors are gonna take their eye off the ball.
And miss the rest of the story there -- I don't think there's.
Going to be near the contagion -- people think it's it's.
Appears to think it's nothing doing -- what there's a reason why we call those other countries picks.
Yell it's their budget deficit.
I mean it's Portugal Italy Ireland it -- Spain and this is nothing new to anyone -- -- and we knew this was a train late wreck waiting to happen I just don't see that contagion because.
Can think about this.
We didn't bail them out we didn't bail Greece out -- get but it -- -- you wanna be built up by the United States not by Germany.
I mean look at the provisions Germany's putting in the right now drastic budget cuts of meat we put all these strings -- -- -- -- people -- and guess what we forget where the strings are real change behavior in this country.
I think the single best thing that ever happened to Spain Portugal Italy K -- and Ireland is what's going on in Greece today because I think they will get fiscal religion.
And we hope so that hey I'd like to see us get fiscal religion -- by what's happened here over the last.
72 hours certainly doesn't seem like that's where we're headed -- it -- but it does it doesn't but here's one thing that I -- very important for investors realized.
Legislation is written in pencil not -- and it this is still work in progress.
And I think this thing as -- of all over the next couple years and that I think it's actually.
A positive for the market in a very ironic way that -- the one thing that I think the investors hate more anything else is on certainly.
Even the people who didn't want Health Care Reform project I'm just sick of the discussion about just tell me what it is put it in place.
Animal -- -- learned to deal with that -- that it.
The point I'm Daryn it has nothing and you have attorneys general wanting to appeal this you have a potentially turnover in congress in November that we'll try to get rid of this thing.
I mean I just think about all the money we're spending.
-- -- -- -- I I three right -- -- I.
-- -- that's what's it it is still work in progress social we have one piece that's.
Basically defined but the other piece he'll continue to evolve.
And with any piece of legislation it's the implementation.
And and no one's focus on that was the report earlier -- -- -- get my point is this so the calorie intake so what's the font size we legislate for -- didn't didn't do that yet have you got an insulin means that this thing is going to be a work in progress but I.
Don't nearly think it's going to be as bad as what the headlines -- But at some points and we have to pay for -- the sentiment is -- at least we know it's what it's there and maybe it's not as bad as we -- it could be so despite some health care stocks but at some point in time.
And the way how much you believe he's going to -- it's gonna caught the ball I would agree and we're not done too because that now next on the calendar is financial services reform so that that's another random.
I I think what would you look at the most serious problems we have is a country that would say this for our country for stock market for our economy all goes back to do that exact same thing.
It's the deficit its deficit it's -- deficit we've got to get a handle on that to me.
It's like it's one thing to save us from the hundred year flood once every hundred years but you can't do it every week and we're on the path of doing that every week so.
I think there's going to be a sea change in congress in November whether it's Democrat vs Republican I'm not sure about that -- more focused on the issue of the fiscal conservative nature.
All of that next congress it's going to be put in place.
They will get an -- for from their constituents when they go back home and try to get reelected this congressional year so.
I think that the reality is that we're in trouble financial -- look at our budget deficit it now is projected to be 10% of our economy and move -- -- -- investing outside the United States.
Our benchmark -- 5%.
So in other words of any country has a budget deficit 5% of GDP or higher red lights go off.
-- ten right.
I needs to think about what that's saying now not.
I'm not saying we're gonna get -- there's a lot of other elements -- but this is a wake up call for this country we have got to get our fiscal hides.
And it's down to three or four and that's where they -- their benchmark but so what happens then you know we have.
As you're saying what all this spending.
We're hoping we -- the congress in November but will really -- to the end the day it made a deal where they get comfortable they get it right and Air Force One.
I went back to where he started.
Nick -- if they change their vote yeah I.
I think we -- this -- we still have that problem with us here's what I think helped offset it that cost the capitals basically zero even when rates eventually back up I think it's a spike in a -- -- I don't think the Fed Funds rates going to 5%.
What that means for our budget deficit is don't look at just a number look at the cost to carry that number and congress basically is giving a free pass of the cost of caring that that's one of the reasons why this country hasn't collapsed with a high debt burden.
I think the other thing that's gonna overlay on top of that is finally all the stimulus that's been put in place not just in this country.
But around the world is gonna help pull our economy out of that we are not gonna lead this global recovery the rest of the world's -- -- -- with them.
Taking our exports and taken us to the next level so what I think is gonna happen is the cost to carry the debt stays low and then our tax receipts won't block -- that -- what countries are you relying on the -- -- see emerging markets a man who clearly meaning here's -- think we kind of know it's well -- China's part of that that I would tell it don't underestimate is that that the Chinese is that this political savvy because.
I bet there are big cash economy too so it's not just their headline number it's a number that doesn't get captured -- -- to say they probably have the largest legal underground cash economy simply because technology hasn't caught up with them so I'm good at two or 3% on top of anything they're doing but two things happen with emerging markets and that -- -- people think about one was in December and that was emerging market economies now account for majority of the world's economy.
That's never happened before so somehow they passed the developed world that that that that trend -- -- that a change and also when you look at.
Emerging market consumers they -- past US consumers in terms of global consumption so.
I know we think we're -- big deal but these emerging market consumers they're consuming more around the world that we are so that's the story -- It's going to have its ups and downs but this is this is a game changer.
For me and they've got to start paying attention to their caloric intake you know.
How -- it would mandate that they -- attention look at.
Put the font -- a -- you can Nike and that's what -- make -- look like I can get through it nothing between minister ordered study of always talking menu -- It helped that brain waves and -- it's sad to see it done as good decided well I -- -- director of the Hartford joining us and we enjoy it when he does.
Income that well actually stay here for second eminent journalists have been a little bit but -- mean.
A lot of stuff to -- through right now I mean if you're an investor in this marketplace is really hard to get a handle on which direction we're going and but you know.
Doctor -- -- we're -- it's 121000 -- thirteen thousand on the Dow again by the end of this year we're gonna have a very solid final nine months of this year I think our market.
You'd like to -- volume but don't fight the tape right up to get to thirteen thousand and easy without climbed thirteen 1013 thousand urine and a lot of people aren't -- and that's a good thing.
Let it out on the thank you don't or won't he need her done that's I think that's it's they have -- -- after that you have a good one what do you do nothing.
Sorry I am.
I am Irish I am a potato -- -- you know.
You are so -- don't -- go out there and we -- a bit of celebrating they had six to show -- you because you are -- saint -- for ten minutes -- and go home.
I just hang out ray Hennessy as much as -- can and that's.
-- -- hysterectomy are so used to being angry at banks and angry.
Com I'm not either.
A lot of people are.
OK but today at the headline -- about that today the headline would make people angry but if you really looked into would you shouldn't be angry the banks for taking advantage of a tax loophole right isn't at all JPMorgan is doing with this yeah.
In this saying let's do a little.
The band around illogical digging on this and then figure out where this started and what we're talking about essentially is a sweetheart.
Backdoor bailout right and you know we -- we tirade of late blood pressure up but we -- that bailouts we have to include this in here.
What happened was in the Armageddon days of the -- of 2008.
-- who led Wells Fargo was fight with Citigroup to buy Wachovia.
And -- Wachovia bought that failed golden west's mom and pop shop now I'm very wrong helping -- that's right pick a payment loans where nobody you know.
Police say Iran payment terms and that proved to be Kryptonite and blew up that and what walk of these books so well Citigroup put a particular and.
Merger you know price tag on Wachovia -- -- asked Wells Fargo came back with fifteen billion dollars so.
What happened there Henry Paulson.
That the treasury at the time Treasury Secretary.
Put in place they're real sweet and chasing -- -- this being attacks pro.
-- sweetheart tax break that let.
Basically Wells Fargo buyout Wachovia and use that loan losses Travis and lousy loans to shelters there to lower their tax bill which is unprecedented.
So -- at that time an estimated 74 billion dollars.
Of a black hole in you know -- -- books so you know.
So now we see.
The government's stimulus.
Picked up on -- jumped on the bandwagon and then extended a similar kind of a tax break.
Two other companies so you know basically what that means is is that you couldn't these companies -- lower their tax bill -- to the IRS.
-- sheltering their income by using losses on the -- so.
Now we -- JPMorgan using it according to the Wall Street Journal when we see a whole range of different companies not just the banks so we see.
Homebuilders right we ceiling are we see not -- few homes received the bond insurers MBIA and -- you know they made.
They've -- had a really bad business model you know insuring.
Bonds and we see you know Legg Mason is seen dale is even big jeweler -- DC have median and GIC investment.
-- -- -- here as well we have a retailer let me just get a win than it is -- that's right.
And borders bookstore jumping on the bandwagon but lists to be clear this is something that congress wrote this rule.
Congress -- -- these dumb rules they don't think about them and JPMorgan is just.
Essentially followed the rules are allowing them to do because they're allowed to take their losses back basically five years instead it's -- Yes that's right and you know what apple was enough -- it again this this is done.
Dating back to that -- catastrophic days of the fall you know the argument there was this really was to help the banks right to get the banks start to picking off -- acquiring.
Failing banks you know.
And the idea being that you know we're not gonna put these loan losses onto the FDIC.
We had a protecting FDIC to that was great read if Casey -- brought it turns out that the taxpayer -- remains the capital nomination for everything and it looks at the damage on there is -- -- -- for JPMorgan on an estimated that the joint committee on taxation.
Estimates of 33 billion dollar that's nice and that and the promise that I every bit on the revenues to dish that kind of money excuse -- -- big break paid for by taxpayer -- And hang out and are they did actually have the audacity to go and tried to.
Force them to use that money in certain ways one point four coming back to JPMorgan.
Are they -- -- -- say now okay we'll find you shouldn't get this you don't deserve it but if you do get the money you should allocated here here in here -- that's a question.
I mean I you see a time and again -- Obama administration.
Saying things such as do more in the way of blown out of the connections right and Citigroup.
Vikram Pandit pony ride up and Saddam had to do that that would help falcons and they say they're gonna give it to some of the bondholders.
I am not sure.
But -- it just mandating that I mean they're all big apart is JPMorgan got yes give it to the -- because they're settling a class action lawsuit that Islam will.
Basically Washington -- assault when a fire sale price nice bondholders say holy -- how you are from what you more than the price tag that you guys set on us so they are anything you write some and that apparently reportedly some of that -- tax -- to pay.
It helped that what -- Islamabad.
-- -- -- -- He Mac thanks set us straight on appreciate it open and connected and very outspoken that JPMorgan -- and it didn't really get that congress consider what they're doing they'll get mad at a C it -- -- got to take a break but we have to.
Stop calling me they're tax nerds that they're adding people you know hate -- my company keeps him in the cattle call next.
Down 27 points on -- market right now fosters dot com live Cotter and burns Tracy won't you please tell you let's move in this market 27 points -- Well since you have to post the caloric intake of food maybe that's why sonics down sonic down 8% of restaurants.
-- revenue dropped by more than analysts anticipated.
Unexpected fiscal lost loss for the fiscal second quarter I've said this before the lines at the sonic by -- -- I don't understand it because they did actually pretty good business model they haven't grown too quickly to contain them.
As a -- and you items so I don't know I don't think it's -- expensive but there.
Yeah I don't attracted to -- sign up and Adobe SpinRite Adobe Systems fiscal first quarter profit down 18% on lower margins.
But second revenues the second quarter revenue above expectations you know that goes -- we just talked about the home builders hit a 52 week I just -- first quarter loss narrowed.
As their margins in orders surged and we talked about housing permits the other builders were up -- -- halting all have a nice day.
Sprint is your fox safety and an S&P 500 leader today.
Up 5% so they unveiled their first US phone that's gonna try to like play in the WiMax gamble.
The evo I think I'm saying that -- need though.
-- -- An MF global -- 52 week high today why could the former governor of New Jersey got us into that -- is now running the place.
If sergeant making teachers losses commodity special taking the company to the moon that's that they think inside their drinking some kind of Corzine -- down there.
Maybe they'll union maybe that's what it is Corzine was of course in some element is guy in charge of like my son's allowance right now and yet he's mind -- -- -- -- -- -- -- this president -- financial group.
I -- good how are you doing pretty good -- it's.
But he got there by the way just to quickly and we'll shop work you know just.
And I'm sure that's what's good Lucy you would you didn't have to take in high school that I did get a thing metals I have -- -- did -- -- determined hurt.
-- a -- clock.
That's why fear the added I -- -- -- I have been.
He was always the -- teachers that were always and again I'm sure we have a shop teacher obviously on the avenue is definitely shot -- chat right now.
If that happens there's always a little something new law with a -- -- and I'll hopefully -- -- -- well almost insane and I'm gonna say his name on and I want to say is -- -- -- I ended their winning.
You know off a little off I don't know what he did you do -- necessarily anything PO incriminating he just he might have.
Good and I know what's going on now with your portfolio of these is -- -- like -- -- -- a lot of buying actually you are.
Yeah by about some more stocks yesterday this market looks really strong -- listen doctor -- -- let the mark throughout the next nine months I have to agree with and -- -- you have to be buying into this market.
-- -- -- -- Because that what Chris and you don't like -- -- Because you have fundamental reason to believe it's going to continue to do so.
Or because of -- Other reasons that I don't know.
Both momentum -- that you cannot fight the tape I mean I know a -- it was short right now I -- -- every day eventually -- you're gonna be right we may run out of money before -- happens when you squeeze before you realize that you are usually I guess -- and then we -- we -- -- -- afternoon which -- -- -- up but fundamentally it is still attractive on a long term basis I find it hard if you're going to invest in the stock market large enough -- now when are you going to -- When he's at 33 like it was ten years ago forty by now it's at sixteen.
What right did you worry you worry that there's so much fun on unemployment states have -- global issues yeah.
And -- -- most individual investors have only experience that one falling off the cliff nowadays and -- in 2000 or 2002000.
Namely the full 2008 when we completely fell off a cliff.
And that was a punch in the gut to so many people I think people we're never gonna happen again so I think that's where a lot of people arms -- -- away.
And people will not get back in until we hit highs and and probably time -- cell that's on everybody's gonna rush back and unfortunately that's -- the individual investor typically struggles to make money in the stock market.
They make emotional decisions so your mind right now what do you find the most stuff commence today Biotech and he wouldn't -- time out water stocks Monday was world water a day and actually the entire chapter in my book on water.
-- it's a great long term commodity.
880 million people deny access to clean water which is mind blowing.
Two point seven B fifty million people around the world do not have proper sanitation facilities on the portrait sure what.
Prop percentage facility may be -- That's two point seven billion people in the -- well it wasn't what I.
Trying to -- but the thing is that there isn't this statistic that children under five years old there's one dying I think once every five minutes.
Due to water.
Water busier waterborne diseases so the big thing going for next couple of years next -- few decades it's -- -- is clean water and infrastructure behind us clean water.
Now is thirty TF that you can invest in that kind of gives you.
Was delivery systems purification all a nice well rounded put Helen nice set up in heaven will -- yet to have powershares.
Thank you -- could -- not just wondering.
At a massive infrastructure utilities around the world -- -- -- large holdings when the stocks that I don't own over the past Veolia Environment largest water company world based out of France.
And the company division over there where they actually set up water utilities in China for -- -- rural areas to build all the infrastructure.
So that's a type of investment would look at you believe in this team.
And it's a low -- not going to be rich overnight investing in this and long term.
I think it's a commodity that we take for granted here and we pay for five dollars for bottled water where people are struggling to even get a typically want up.
-- -- know what a story for awhile ago in its hat you know leg kick that ATF is certainly up over the last year -- you it's.
The story's not done those are your concerns now I think it's a long term store and it's well off the highs and he's probably still fifty or 60% off the highs and right to -- it in 2008.
But it's a it's a long term story I once I think it's the mainstream and we talked about a lot about from people but hasn't the mainstream yet.
What's it does I think you conceded the stock actually prop up -- in the bigger firms are covering it.
But I think if you -- -- think of mega trends long term seems this is one of them I think will outperform the market going for closer to FL last pumps valves things like that so this is the -- -- to a deliver.
The -- didn't -- makes -- that statistic.
35 trillion dollars expected to be spent on infrastructure next twenty years globally.
There's CEOs talking about that they're expanding now to Brazil that is open new branch in China so they're looking at emerging -- so this is docile place on emerging market.
Also here United States and developed countries think about new York community is constantly water pipes blowing everywhere barrel is replacing it that it put these -- and they're meant to be there about forty to fifty years a lot and then there's seventy to eighty year dozens of the replacement is going to be going on continually seeking to see -- -- do really well as far as that's concerned -- and this is -- -- manufacturing sector that.
Yet seen in fact -- we durable goods not so -- like all that kind of -- this is a somewhat of a plan.
Kind of play on stimulus to you know get the you know that in China the stimulus -- a lot of money into infrastructure.
-- -- -- put some money too as well so it's -- it's a it's a broad long term.
Pretty conservative play -- battling you're not going to be in you know I had a big volatility won the last tech -- if you.
Blind now you're gonna buy -- -- take a little bit of of the retreat to see you're just gonna keep finding -- 457%.
Down here over the next couple weeks leading into.
Earnings season you're just gonna keep buying right I'm like yeah I mean I'd like that to pull back and let them pull back the -- of -- this week is because we haven't had a pullback and an immediate -- to the market.
And -- but a lot of individual stocks look really good right now I -- but until Biotech yesterday I bought into -- networking company yesterday Wi-Fi.
I mean there's a lot of good stories out there that stocks are still trading a nice valuations thinking that they -- That is -- call.
And financial eleven we had a -- learning -- for a couple days nab deposits holding shop teacher and athletic and they've both sort of insult a little next time bring that wouldn't fish that you -- me that you may legally anyway plus they.
Iron and it was a matter whatever I wouldn't.
That they ran the clock that never work Jeff Flock failed shop when he was in tenth grade easy and I highly guys Alaska -- tonight yeah that anybody got a amber yeah.
-- We got -- he's got -- dignity did you -- but notice how.
Welcome back -- foxbusiness.com live we're still discussing shot and I did have to Jeff Flock in San Francisco -- I know.
Willingly take shabby probably rocket.
Chris here seem to think he might even -- it I'm guessing yes.
I had made a magazine rack for my mother which still -- which is still hot guy when she kept it all these years that's -- so I -- duct tape and but my trump -- -- and I.
-- was a little -- Weird yeah I kept doing what.
-- Geithner acts getting a guy literally say you keep dug deep -- trunk.
I could wind up out there yeah.
I went -- I'm -- luckily you're not talking about Scheyer did.
Go -- -- that's where Nancy Pelosi wants to put all the health care as CEO necessarily -- -- Nancy Pelosi is district here this morning ramps at Bob zooms around here we could see the look.
We golden gate off they are behind us the other thing about this one and is that it's a hot head of medical tech and innovation.
Got Marc watts with me who is the CEO we'll see change L but had to -- spell that mark SEE.
Sea change helping you attribute the cool thing -- you've seen the change coming in terms of Health Care Reform and -- structured -- launch of a new insurance company based.
Almost literally on health care.
Yes we we recognize that the traditional way of doing things wasn't working and so we incorporated a lot of what's in the health reform bill.
In our plan designs and let me show you what this plan -- about you we know the kind of plant that we got -- boxing -- many people do.
In terms of health care but let's let's put -- the sea change health.
A plan and you'll see what it offers that the current plans to -- for example.
The plant starts with a typical -- each wanting in other words you pay that company pays -- and you pay 20% of your doctor's visits.
There's a third 200 dollar maximum out of pocket.
But if you had your plan and you do your annual doctor visit.
You do bio metric which is a blood draws with that's correct we look for things like cholesterol Mac team and how -- -- -- to kinda get the heads up.
And you to a personal health record you essentially incentivize people to take care of themselves and you'll then pay.
A more rich benefit.
Right will move the person from an 82 money to a 1000 Cohen -- that you pay a 100% correct we -- -- out of pocket by a thousand dollars.
And then we also fun day help for the senate account with 200 dollars for single 400 for family -- what does that -- cover the health certificate.
They can use it for whatever they want -- classes.
Vision but really it's focused on helping cover any out of pocket medical expense that might that they might occur.
Interest and so your hole and and why does this make sense for you and why are other people to write it well traditional insurance focuses only on the 20% that is the -- And then the 80% of the population that quote -- left alone.
We want everyone to see their doctor and recognize and identify if -- are problems.
Start taking better care of themselves.
So that's is that they don't get to that 20% of acute care which caught -- pile of money you tell me the difference between catching for example.
It's just the different stages of field.
Right so -- -- example type two diabetes stage one insurance company spent about 6000 dollars a year and that.
If you -- state history diabetes or stage four you're anywhere from sixteen to 20000 dollars a year so you can keep that stage one person out.
Well -- -- state want to start with but accurate statement keep them in stage one don't let that progress -- you're save a month.
We're saving money in the whole industry's save money and why the hell is the insurance industry not doing this -- used to work at united health care right.
Well the traditional model it's just been really brought up around only really focus on people who had camp striker.
Cracked constructive answer -- and turn into a train wreck and then the assumption is the rest are healthy.
So we can let them do what we get away this Health Care Reform -- an adequate job of addressing these issues as the bill that was passed some -- sent it to there are some aspects that need to be improved.
We take a crack that.
Interest -- look at an opportunity guys out here in the media in the Bay Area which is hot -- of medical tech as well as new innovations and insurance.
Thank you -- great work yeah and it -- is go to Jeff left.
I can get used to this I think.
There's about still to beat us Nolan could Chicago -- yeah.
I think Sarah thanks.
-- the sand Fred you know that's -- Wear pink -- get away with it you're just getting yourself and so much trouble -- -- first it was the duct -- in the trunk of the car and out of pink shirt and got a little nothing derogatory but -- duct -- in your trunk I -- that everybody -- -- it you -- do surgery -- duct -- According them an LLC have duct tape in -- paper clip you can't just deal with duct tape here you -- have them other tools and -- -- -- right.
And it and I can take your -- out is one thing that we are going to see some jabs and just in a lot of cases.
Are the potential winners and ways of winning with this legislation because the legislation is here.
It is gonna change is doctor Bob told us earlier it's written in pencil so we'll change but the fact of the matter is it is here it is not going away and we're gonna have to figure out a way to deal with it.
Chris we just saw with you Matt -- telling us about JPMorgan -- in the tax loophole and taken it.
There's going to be hundreds of them in this Health Care Reform and people are gonna.
Make money via its it's -- it wouldn't be an Asian and east.
We're -- -- be OK -- it -- and I like get I'm not saying it's good I'm not saying we're even going in a positive direction with a passer and that's and I would have voted -- had a vote.
But I am saying that we will have to deal with it I would I would want my 500 -- -- kind of whatever that was.
We are gonna have to deal -- I think we will do with -- in another -- we look we -- we're Americans you want to -- real safe we do that you can do that right now can we talk to share analysts say right now Fort Lauderdale attorney and author of foreclosure nation I -- -- -- gonna show.
Hey hey -- -- -- -- -- -- -- foreclosure nation -- that does not sound very promising.
-- guessing here a little concerned.
Just by the nature of the the -- that the title of your book about what we are seeing here in the next a few months next couple years.
Yeah well the book is actually optimistic and so might -- cannot become a foreclosure nation.
The goal is not -- and Ali Ali okay -- and I'll be heading in that direction we aren't gonna become a foreclosed upon nations.
You know that's a good question and very timely now -- -- you know we had a couple of really interesting statistics come out this past week.
We're looking at home prices which came out this week and the home prices which we know plummeted last year.
We saw a little bit increase in the last couple months are headed down a little bit again.
Not as quickly as before but we had a 6% decrease in home prices last -- last month during the month of February.
We saw existing home sales also go down which is unusual because normally in a regular market when prices go down the sales will go up and even people want to buy and that's not what's happening.
So it's some interesting stuff looks like we're headed for a little bit of a debt.
I have a feeling it's gonna last a while.
OK but you get re multi track saying that in 2009 -- two point eight million not properties lost to foreclosure did they expect.
Four point five million to go into foreclosure in 2010 that doesn't sound very promising.
-- -- Bad numbers for as far as foreclosures -- and you know -- Tracy is the foreclosures obviously that are driving these existing home sales and the numbers.
Our biggest threats right now are foreclosures driven by negative equity and driven by unemployment we had about 300000 foreclosure filings last month.
And it's a serious issue.
This adverse feedback -- -- being created by.
An estimated fifteen million people who -- under water is now bringing in not only people who remember -- started as a sub prime crisis.
Then it became more defaults in the prime mortgages but now all of us even if we didn't participate in the bubble are being drawn into this because our homes are underwater.
And Americans are having to decide do I stay or do I -- How do we survive a double dip in this housing though with unemployment numbers -- is a real unemployment around 17%.
How we survived again.
A rash of foreclosures and people losing their homes at this point time.
Good question and you know not only talking Chris about unemployment we're also talking about under -- -- Because about 60% of the people who are getting help under the government's making homes affordable plan are reporting.
A lack of incoming as their reason for having to default under the loans.
But you know in terms of what to do the government has really looked at about five different buckets of solution so far they kept the interest rates low which is a great idea.
They -- a lot of stuff on the secondary mortgage markets to keep that credit flowing which actually a lot of that is winding down this month.
We've got all of the things that this GSEs have been doing being -- Freddie Mac.
And it would get the tax credit which seems to have not worked and we got -- making -- affordable plan which frankly you know President Obama -- there was some good thought behind that but it's time to admit it didn't work and just move on.
Some thinking about you know today we hear that Bank of America was going to go in.
Modified Princeton -- could open -- around these interest -- accusation modifications have done Jack.
Going in the end of the heart of the matter modifying principle is -- -- -- Yet what what do you really think I'm -- at the bit at I think I personally have a big.
Probably principal write downs I think -- had -- been a lot of talk in government recently about what's American and what the American model and un American I think principal write downs are.
Incredibly un American.
You know the problem like I -- this is negative equity which is the same thing as the deficits and ended deficiencies iron on mortgages so if someone's going to sell their home in a short sale.
What happens with the difference between what they're getting for their home and what they owe the bank that's the deficiency and it's really clogging up the system.
There's but I think twenty million people who are expected to be in that situation I don't think the answer is writing down the principle but we do need to come up with solutions.
To keep people in their homes -- -- upside down but can afford to stay there in other words to motivate them to do the right thing.
And then we need to come up with solutions and here's the hard part.
For people who just should not be in the homes it.
-- a lot of close to that bump on why you don't think -- -- be written down is it a moral issue that you signed on the dotted line and you're responsible for this loan.
Two things number one is it's a private contract -- -- contract with a bank it.
Yeah I think I did have a problem with that any -- -- we're forgetting that perspective I mean if we remember about five years ago when a lot of people were sitting at the closing table signing your papers.
If you had said to someone and you know what if the market crashes in this turned out to be a bad investment.
Don't worry about it because we'll just write -- the principle if we would've been shocked me and now the fact that this is actually a discussion.
Puts a little bit of fear in me in terms of the perspective that people are just forgetting about but the second reason is.
Every time we've done something so far this crisis we don't have to address existing problems but the problem keeps changing as we do it.
So -- write down principal today and a lot of these homes are expected and again this is becoming a regional problem so here in Florida or California it's a bigger issue than in North Dakota.
But according to write down principal today the problem is filling -- we may need to write down that principle again in six months because the prices are gonna go down another 10%.
And what about all those people who aren't actually thinking about.
Walking away or defaulting now who find out hey they're free money let me jump on board which is exactly what happened with the government's.
Making homes affordable can't modifications.
Every Tom Dick and Harry -- heard that there neighbors were getting modifications in these things spread around and everyone got online for those modifications.
They're just not eligible it wasn't meant for them.
And we cause more problems with the moral hazard than what really something.
Sherry what's your -- -- your gut feeling I'm just government involvement in general and housing and we've got this tax the taxpayers that credit I should say expiring in April.
Probably still have other programs -- short selling program on the -- we've got a lot of other area.
You'll intrusions by the government does that come within the next 456 months a year -- they finally get up and say look let's find a natural bottom.
There's no way if you look at the time lines on a lot of this is no way -- because of this problem.
So we've got to look at short term solutions and -- -- got to look at long term solutions.
Which will also I hope integrate a lot of the ideology of what's behind these programs and government involvement in the first place.
But if you look at the debt now that the GSEs have.
If you look at a lot of -- loss share agreement that when the FDIC goes in and takes over bank and -- the bank gets to.
Their assets there -- was under these -- share agreements with all these agreements and dollar amounts.
Indicated very very long term run I mean the big 1215 years from now for the unwinding.
If you even look at the negative equity that -- -- hire other people they have in our homes -- the equity that we lost thirteen trillion dollars worth of value.
It's gonna take a long time for that to regain so we're looking -- at least five or ten years out.
For a lot of Americans to recover people who have lost their homes will need ten years for the foreclosure to come off their credit report on the twenty years for these deficiency judgments to go away there's still going to be obligated them money and may -- sued -- -- collection didn't have many years down the wrong timeframe you're certainly one of the hardest hit areas of our country -- Ellison Fort Lauderdale attorney and author of foreclosure nation thank you so -- -- -- on us.
Thanks guys mention the stuff for a New England them.
Com -- -- -- -- come back with her listeners really bothers me here we go from some -- that I just loved like metal work and woodworking shop.
I -- more rules about our cars.
Debit cards credit cards.
And now gift cards come on.
We'll get back to the showdown just fifteen points that's finish -- -- -- -- it's also good karma that's what you get some times and trust is dot com life.
-- burns -- -- tunnel caught Iran.
We are us what we spend thrifts I'm sorry and I you know I understand it -- and the economy but.
Let me start -- Spain so there's a study how America spends study done by this money site called -- that they got their -- dad it's government data from -- so if there's some legitimacy to this.
They claim that the average American household in 2009 spent -- -- 37782.
Dollars this is not including rent or mortgage payments so this is.
Shopping the average person spent about 8700 odds on shopping food drink.
Just getting around gas prices things like that your house and pentagon came and things like that.
I would integrate -- states' rights so these states that spent the most money top 57 number five.
This interest me because.
Tax would -- -- -- -- -- -- and that's serious happened down.
And I as oil money and might well they have more disposable cash maybe you can argue because they don't have state tax behavior have been at Texas legacy legacy like Dallas.
They've -- of those country western stores you go to that place you're walking and it was a big belt buckle a pair of boots on and a hat but you can't go you can't go and it did these stores and douse them violent stuff I would never -- -- He wouldn't -- about Chelsea model I can continue.
You toes in the -- us California number four.
Doesn't surprise me.
Number three OYT believe it or not they spent a load of money 46000.
Over 46000 dollars a year in Hawaii.
Yeah we come to DC no surprise -- about 49000 dollars a year now this is on stuff other than your rent your mortgage number one -- -- -- Connecticut again.
-- -- after it came -- this -- Ali did bad.
And then thousand dollars New York was in the top ten New Jersey was not -- now we surprised that -- let me just quickly -- the city's number one spending city Austin.
Austin Scott still San Jose Arlington Virginia and -- Texas now that five -- is spending.
Number one no surprise to tricky area.
And Cleveland and then.
Toledo Toledo yet only easy does feel completely real easy and -- -- simple living -- I guess I guess but we spend a fair amount of money but I thought it was interesting that we spent.
Over or almost 8700 dollars just on -- -- shopping.
One -- -- Connecticut people spent.
Dollars just on eating out.
Connecticut people you can't read what I meant I know residents of Connecticut spent over 25000 that's a tough -- -- now because.
It utility average person it's really hard to identify the average person in terms -- their spending -- because there's such -- big divide between.
The haves and the have nots when they are still ahead of say a rich family spending 37000 dollars -- here is like nothing.
You know but.
Other families -- -- but shouldn't you don't agree that well but.
But you see that and that -- in states doesn't mean you see Connecticut has loads of money to spend -- Boise Idaho does not I'm lazy I don't.
1000 ID -- the city's two unions are about Austin you talk about what was it San Jose season high tech.
College towns what have you a lot of and you know.
A high tech companies and things like that's legacy the -- would be total spending in Austin 67000.
Dollars a year again -- rent or mortgage payments in this.
Senate right six a sixty and I sent Adam Levin is here chairman and -- sign of credit dot com.
Adam we have yet another wave here on this card bill and I don't really like it just he's hitting it takes away another level of personal responsibility away from us we're being told if you companies are being told retailers.
You have to take you know gift cards for five years you can't put extra -- -- charge fees even.
Units in the past that he put it on the back of the card or whatnot don't you agree this is taking personal responsibility away from us again.
Now this -- this -- I know I mean I think that gift card personal store one got the money you have the money.
And -- I think it almost like the tape in Mission Impossible in five seconds this is self destruct and you've got a gift card.
And sometimes people forget they have the money's been spent -- at the store.
Now you say to yourself if the consumer doesn't go in and the money dissolves.
What does that do for anybody.
But if the money is still there and consumer can go and and buy something.
They're buying something creating a demand as a result of the demand the item that they purchase has to be replaced which helps in terms of manufacturing things like that.
I don't find that a bad I don't buy that is this more than that it's not well okay.
You blunt about the history seeing this more -- -- -- has beaten the banks pushing back saying look we can't look this revenue to they use this card.
I can't show this money that you're seeing the store already had.
I want to do that let's -- along a little bit.
I go back the fact of the matter is that the consumer is it good I -- summer I had been a bank accounting is not my issue were all suffering through all the fees we've been.
Been slaughtered night because a bank account so the fact is the money's been paid.
It's -- -- have a cart it's five years the problem must gift cards -- nobody knows what the what the what the deal is you by the gift card you give it to somebody did this is great.
They have it.
And because of the fees between an activity -- and all the rest of the fees you can have a gift card by the time you use it isn't worth anything anyway -- the second thing.
If you have a gift card and you go into a specific store or mall where a series of -- there's probably a high likelihood that in addition to using the gift card.
You're gonna suddenly get acquisition -- case and you're gonna -- more.
So in the end you're actually stimulating demand on two fronts.
Having real products move as opposed to money that just evaporates you -- and having the opportunity for more merchants to sell more -- why they got you in the store.
It's a good point too because he he had a fifty dollar banana republic card you never -- -- and spend exactly fifty dollars.
Is he thinking well what -- always been 56 dollars if you don't plan on buying any TLC just simply this the act of using that card forces you to spend a little bit more than that -- -- with the people in Connecticut for instance and plastic using lots of gift card -- -- on food that's especially so loses with this room.
The institutions that would be charging fees on these and these cards would lose.
Because they're not getting the fees there there -- not getting the -- or they're not forcing you to spend more to end up in the same place.
Not I have faith that these institutions.
Are sitting there right now coming up with new and innovative ways to create more -- that's so we've been talking about -- -- -- as -- and people always find a way to defeat new -- these -- punishable by laws are -- put another way around and Smart people at the Clinton term credit and -- clips are gonna have both so this goes into effect August 22 in his eyes when he -- So for those of you who have gift cards right now they are not protected by this segment of the card act.
Spend your gift card.
Now yeah now he had an office protected or not they -- Ellen wouldn't mean it was -- to do it after August when he sets a gift card I got before August 22 I'm good I think you're good.
But -- but it's -- question of whether you are good.
Very good compared it to the gift that keeps on giving today issuers in the -- you've got to give it to use that card and so if you get a gift card.
-- you give a gift card inspire the person who receives it to spend it right no actually get it spend that rat advice Adam thank you sir.
-- spending if I don't let -- and he's of course the typical kind of credit that coming visits about once a month and straighten us out all the rules keep changing I know.
So as the market -- -- not changing for the better right now down about 24 points that's about right where it was yeah he's actually -- better than we were right we started to show still down on a day though.
Trying to build on the momentum we had yesterday the trouble.
-- -- -- -- A lot of things today.
We have to take the hand of paper clip dubbed it alone does no good shop class watch out for jobs teachers though -- -- -- -- come.
Those things that we have been.
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