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We -- service members again come fall -- little sure we had challenger gray report that people laid off more people than expected in December.
Even though the ADP number came out a little bit better than they were expecting.
Still -- being laid off still people being laid off dad and big chunks Wal-Mart about thirteen thousand in December of and we knew that I guess Verizon about 111000.
But DC's -- all laying off people lot of post holiday retail -- time.
Especially on in the retail -- being laid off when Omnia banks also suffering a little bit today use -- you basically just.
You sort of have this on two days something's up two days some -- two -- something's up -- -- -- -- going to be like this it seems like over the last couple weeks it's gonna continue to be an.
The Toyota saga continues actually see we're hearing from secretary Ray LaHood now saying that if you have a Toyota you -- -- drive.
His job to do that to be completely honest with you mean I guess about I guess is his job.
As a transportation cemetery.
But it better be a really serious thing and percentages are talent -- -- on -- it's a tiny tiny.
-- fraction of all those eight models out there that have this recall bomb that have been involved in any accident that you can attribute to this tough call right.
It -- zoom -- on here yesterday saying that Toyota should have done that from the get go.
If -- uncomfortable which -- on the -- in the driveway it will send you a rental.
I couldn't agree what Toyota through stepped in front Palestinian we talked about it you know it likened it to lump the Tylenol scare in the early eighties.
When it like that you had several people in the Chicago area died they found that with -- -- all.
Literally like immediate police cars driving through the city Chicago on loudspeakers saying that he would not -- -- all.
Maybe this was basically Tylenol coming out and saying this is the issue.
And that was a different situation in this one and this is a situation where.
I'll be honest with you any driving one of those Toyota's it's not that that that much of a risk I honestly feel that way.
I would -- I -- what I still drive I have a sexy on the road when they're around me now.
It's like a lot of them and it is the -- kills me but could it -- when -- in front of -- and -- and accelerate -- our -- and accelerate away from the you that you're not gonna have to worry about you did tell me that I did say anything when I think what you're saying -- that is in the driveway -- We have to go away from you it's all part of the -- And I don't you just don't know why the government fueling the panic that's my point of the movie has to happen don't fuel it.
I don't want a socialist economy by any stretch because that we are seen -- very close some days but when you talk about somebody -- got three kids in the back.
Let's err on the side of course -- -- Then we let that be that individual's decision to err on the side of caution.
You know we don't easily from the government telling you that's what you need to do.
You're an adult you can figured out -- -- -- adult enough to have kids.
You can figure out when you need to have you know while back that -- for another day whether or not people should have children in general but that's OK anyway.
-- this something -- not qualified to be parents.
Yeah do you get -- -- -- fixed now but you don't feel like him to be -- don't have kids there's good reason Fort -- -- -- if it hasn't gotten it shouldn't be having.
Do you have -- channels and savers -- reason joins us right now from the queen city in Cincinnati native Richard.
I'm general Democrats are you do you agree with Tracy I had to -- you that you only said it it seems like you for every separate cities -- -- down little choppy waters right now on the market.
Yeah over the last several weeks it's become a lot more schizophrenic if you will -- mean we peaked out on January 19.
And had a really good first part of January.
Since then we've taken a little bit of a tumble here and -- does seem like that we can't really.
Get much upward momentum going at least at least not yet although we've got two good days in the books so hopefully there's more come.
Yet this is like my standard question Richard what about the volume its anemic at best we're not seen anybody come to the table to play this game just yet so.
You know whether we're up -- down it almost doesn't have a whole heck of a lot of relevance of everybody's on the sidelines.
Well you bring up an interesting point in classic technical analysis suggests that a rally without volume isn't really.
A rally that can be counted upon.
But I will say that some volume is kind of delight here.
During much of the run up off of the march lows and I think part of that he has.
Because there are still a lot of disbelief -- out there.
The -- at -- is to study sentiment in the market as an indication of where the market might be headed and what we're seeing is a continuation.
-- skeptical sentiment some pessimism out there that suggests to us that this isn't a rally.
That is certain year in the ninth inning because normally at the top of a rally you have a lot of overwhelming optimism euphoria significant volume coming at.
Lot of people buying into it so.
I would say -- not to worry so much about the volume because the price is still the the biggest indicator out of the two.
And that these dips have been dips that the investing public has bought.
And if our low was last Friday this could be another buying opportunity that can allow us to to keep making new highs and keep ratcheting this market higher.
Richard I think certainly over the next 48 hours that we're gonna see added nervousness about jobs.
-- -- and forty hours and into Friday morning.
On are you nervous about that number you think that's gonna move the market one way or another when it comes out.
Well on one hand I do think it will be and number that that will be paid close attention to so I do think it will move the markets.
But I'm in the camp that -- employment numbers are really lagging indicators.
So -- you know it's may be a continuation of this schizophrenia that I have talked about earlier.
Where you have a focus on a number.
That really is not as meaningful as sometimes the market the market makes it so I think if if the number comes in that were right around the where we expect.
I think that's going to be good.
If the employment numbers are great and it shows that things are back on track that should be a positive for the market my biggest worry is.
That we -- -- and some of those employment numbers are maybe not as good as people expect.
And that that would cause of this maybe mini correction here to to possibly continue.
And that -- -- is entirely possible.
He -- have a housing market at all I mean how worried are concerned are you that hasn't this is not look at like its climb out of this hole.
What we've had a numbers that have been all over the place with respect to housing.
And it's a very difficult possibly -- most difficult sector to predict.
Because there's not really going to be any clarity until after a few things occur on the negative side you've got the that the tax credit for homebuyers.
It's going to be expiring at the end of April.
You have a consensus.
That at some point the Fed will have to begin raising rates which will make mortgage rates go higher if mortgage rates go higher.
Generally speaking you're going to have fewer people able to qualify for mortgages and buy homes.
And is so those things are headwinds for the market.
On the other side you've got some numbers recently this week even that have shown that things that may be turning around a little bit but I see this as being a recovery.
That's going to be one of -- fits and starts it's gonna take up a lot longer I think that a lot of people.
Think it to really have the housing industry get back and get back on its feet.
-- -- with that said you like any sectors in particular any particular equities within those sectors.
I would say the Internet is.
One of our favorite sectors right now -- technology led us on the way up from the march lows of the NASDAQ Composite outperformed both the S&P 500.
And the Dow Jones Industrial Average and with in the technology sector.
Internet would get better than that the overall.
It's software hardware and in and other technology area so.
Internet I think is is an area where we see continued strong earnings we see continued strong price action a couple of stocks I do like in that area are Amazon.
And Netflix both of those companies have come out and they said that their businesses or are doing fantastic another one might be Expedia dot com.
Those three probably are my favorites in that sector.
Have -- -- quickly before we have to run inflation does it worry you at all and we're pumping money into this month economy and yet we're not -- -- it.
That's true and I would say that there's a difference there between the short term -- in the long term view.
In the long term view I say that there has to be some impact from all of the funds that are going it.
We've kind of got the biggest punch bowl we've ever had out there with respect to interest rates and the stimulus that the -- and federal government has provided.
So at some point.
You know we're going to be we're going to be drunk you know -- someone's gonna have to remove that punch bowl but in the short term the numbers really haven't supported.
Higher inflation we've seen PPI number CPI numbers.
The employment cost -- next none of which are showing right now.
That we have any worries on the horizon I think that means.
That the Fed probably won't be prompted to raise interest rates until after the November elections -- about -- elections Richard Richard sparks senior equity got out of shape -- investment research.
At Cincinnati thanks -- -- left.
Thank you very much for having me.
I was that a lot that an -- all that's their collections -- it is and it's about playing politics with the heat do you know this is total side anytime I say Cincinnati I cannot help but think that he can't beat Cincinnati and -- money isn't all.
-- -- thank you tell -- these flights and Lonnie Anderson for me for sure.
Venus might Venus fly trap they either one of the I -- are -- saying I think about Cincinnati clearly isn't that no we had this especially.
Don't you people put it on -- something out there and we -- is beginning.
-- went back we'll talk about his -- I can't yet we are working.
I think we'll see the point of the matter is that we'll we'll get into this a little bit later on we got to move on well into the zone when yes you're assuming that is this.
On the government is telling you that -- the park your car it is issue and it should be you telling yourself yes I believe my -- -- of the drive.
No I want to put the car and what did you say -- -- rentals.
Well first I said oil track made a great point saying tell -- -- one car family and unless you're supplying us with a -- you can't tell me to park my car and if the government is telling you can't drive it in the government would supply you with the rental at the taxpayer expense -- where we're heading with this.
While -- -- -- -- -- you what really say earlier four legs good two X man that's right -- -- back at universal health and author of Health Care Reform that makes sense that argument they're just makes sense you're a guy that's gonna.
That can't make it a little play for about -- -- the fact all right today congressman Rangel said you know -- -- in favor of -- bipartisan.
Agreement on health care and that was nice yeah.
He believes that a negotiated -- can be done that's great if he's sincere about it can we have an agreement that both sides of the aisle agree upon obviously going to be able to get to that point.
Well I would -- would tort reform.
If the Democrats want to.
Tell the rest of us that this serious they would have a thought reform.
Program they don't have tort reform and not touching it so if they don't touch there.
People and it seems like to -- that thing that makes the most sense it does and it's in my book.
His trial lawyers.
The biggest contributors to the Democratic Party at trial lawyers so they put them on the side well if you wanna put your things on the side others -- put -- things on the side and know we can come together unless.
World and you know put our put it and put in the pot.
And that's -- we're -- right now we're not gonna get the most important part.
So what are we gonna get well.
One of the things that I.
Thought this summer when I wrote the book was -- the public option was not something that made a lot of sense.
And that I was hoping that the people of America wouldn't go for and it did and they -- And then there was the Massachusetts -- -- a big favor.
And it shows that the average guy knows what's going on when he pays attention they did not want the government to have a public option which would have.
The insurance companies and a couple of steps which is what I said and there -- people who want that they don't want the government.
To run the whole milk if so how do we ensure everybody then if we don't have that option needed to deploy the cooperative plan worked.
I'm not for cooperatives -- you know I think there's been a lot of this direction in terms of various names they don't talk about single Payer public option.
Collapse it's all the same government will ultimately -- ago when the government runs something when they compete with you.
At some point you're gone and the governments there so.
The thing to focus on is if you will call.
Conversation was or 47 million uninsured then people talked about.
Fifty million uninsured and a country like America can't afford to have fifty million uninsured people but wait -- minute.
The the president then made a speech and all of a sudden thirty million became the number so 20000001 away I was pretty good I think that if you would.
The congress would allow us to buy across state lines have insurance companies.
Compete across state lines -- there was -- twelve million people would buy policies so and I have been thirty.
Minus love it down eighteen.
And what I would -- if you took 75000.
Has an income break.
And you said make those people mandate or something those people buying insurance like they have to have car insurance that's nine would now down to nine.
I mean -- a way to slice this thing and I would hope that's the way it goes incrementally work on the problem don't take the best system in the world and throw it out.
But -- you're saying keep the system he says keep the current system let's pare down what we have let's figure out who really is uninsured right your I think appoints a good one -- number is bloated.
And then and then -- -- then we start from scratch we start overwhelmed -- or what about tort reform what about medical at all like getting electronic medical records -- like that.
When I -- tort reform when you see it on the table.
Seriously being discussed then you'll know that Charlie Rangel and the other people are talking seriously about how we deal with the problem let's talk about tort reform for a minute.
I don't know how much time -- Tort reform is in 28 states caps on noneconomic damages malpractice.
Taxes for example putter didn't.
Reduction and doctor premiums.
The estimate is if that went across the country that'd be around fifty billion dollars and a the other estimate is PWC.
Very -- firm very reputable said they figure there's 200 billion dollars annually in unneeded testing.
The total cost for years 2.3 trillion dollars that's 10%.
That could be saved immediately if you had tort reform if doctors were not concerned about being sued.
That as much then that you could save all of this money that would go a long way towards reducing -- course that we're talking.
We have a lot to talk with you about the unfortunate don't have much time today but we -- had become that -- -- -- actually what you're.
Please let them wrap this thing up is is obviously is not going -- You can't write in Pakistan those are people here -- saying this summer help -- -- -- defile.
Good Allen Miller CEO of universal healthy to ease of course that the author of Health Care Reform that makes sense and we appreciate him joining us today to help us -- makes cents.
And a all of us because it doesn't it doesn't and -- -- notion that Charlie Rangel wants anything by a person is so much.
I'm with a -- nonpublic area well make it happen when -- -- movies.
Coming up a little bit later on in the show as well before we do I would like to know from you what caught your -- at least -- May you thought that's gonna pick up my life story from yesterday and I almost did I know -- not want to I want to here's another story that incense is made out -- credit cards -- mortgage payments which one do you pay first that's the new question apparently more and more people are paying their credit -- -- -- first.
And letting their mortgages go delinquent that it wasn't like this at first person through was really scared and wanted to hit it what do they had to keep my house.
Credit cards can go by the wayside but now joins me this why because well.
You neighbors walking away from his house.
People just get you know we've loaned me some are getting lonely not -- -- -- -- it just seems to be like no one cares anymore -- don't seem to be is you know.
Forthcoming as far as.
For closing on your home trying to were taken there's times he investigated but.
You go into a weird thing credit card I mean for many people that means it can buy boot -- and -- in your car.
So now all the some of partisan changed dramatically expands like that you need your credit card to be somewhat timely even if you make the minimum payment.
And so that's we're seeing some Nevis does not for bode well -- the housing market this means that the recovery.
In the garage there is no recovery.
And we at least to -- in the housing market -- -- -- Also just props to our in house economist mark Lieberman for pointing out I guess you missed this earlier today I -- -- company -- for the banks it's more beneficial.
To pay down the credit card because the banks like man even though the critical of mine at a higher interest -- not been paid down it doesn't really matter.
The houses are at least secured so even if the hole was worth less than the mortgage that's a great.
You know eighty cents a dollar seventy cents fifty cents a on the dollar whereas a credit card is completely unsecured loan.
You'll get nothing back if -- -- politicize.
And I fair enough but you can't buy groceries with your house with McDonald's now in your mortgage with your credit card.
And that's probably happening we can you do that.
You know you can save up cash you tickets to vans and credit card -- police cash advance that's different though than just pain with a time settle factor into the dating decided if -- -- Canadian -- -- and I think smack in the it's like I'm going to have long -- from Britain meaning that's why it's getting what it's that's about -- People are using.
That credit card limits to pay off their mortgage that you know we should have done in this country is number one.
And loan to value ratios like the legal limits like Denmark or Fran Hartman gotten where you don't allow a 100% no doubt loans.
And also you have full recourse for the banks to kick your other assets -- -- gonna walk away from your mortgage.
-- -- We have another country 800 I want us to turn into Europe but I'm saying let's actually get them eighty pillow under -- let's just get some common sense internal lending law.
It's just used to be from the lenders -- not I was in banking not too long -- And we never had anything you know 80% loan to value that's what we did and you can do 100% it was -- it was unheard up.
I -- that you guys who win this whole mortgage crisis the housing crash happened everything blew up and then -- took an X ray to what really happened.
I was stunned I was stunned -- the reckless negligent behavior of Americans in this country I was actually.
You know -- -- really kind of mortified about what people got away with sick when the wreck you know good -- hard working tax paying.
Americans are doing the right thing and paying their mortgages on time paying their tuition on time.
Then you see these guys these people out there doing that I just cannot believe that I am not sure I would it was a really brought Eileen -- legislate taken happy pills -- little too much no one ever thought.
-- housing would come -- yet right now the government spending it's you know to get us out of it sort of like you know drinking Scotch to cure a hangover right.
So there are.
I think that works as they're urban prep Oliver for you -- will it -- for you -- all right.
Good hard working tax paying Americans.
It's okay you are Elian AIG should people really be upset about this -- -- announcing bonuses.
Com it's not a huge number when you compare it to across the board to some of these other -- -- -- -- -- a.
Good question good issue.
You know basically -- saying to their workers look.
If you don't accept the bonus cuts and -- gonna get a bonus up on their kind of a little yet what we're talking about it the financial products division that came up with this crazy.
What are called credit to -- no default swaps.
Whereby they made -- really bad bets on all sorts of asset backed securities.
That they did not have the cash cushion at AIG to support that distance at all so the taxpayer effectively became a credit default -- the form of insurance contract that they.
You -- AK was supposed to pay out on those that that's on those asset backed securities that they went belly up.
They didn't have the money do that today for the diarrhea hair and yeah companies like Goldman Sachs and Deutsche bank and that he'd exactly 100 at a taxpayer became an act actively AIG's credit default swap -- now be any chance.
-- Getting word exit will fit -- -- -- at credit default swap is right knee buying fire insurance in your house and cross my fingers and house -- a plan that's so it's again all part of the bubble that we.
Confidence game yes you yes.
Basically put it that was so what they're doing out -- is it going to cut the bonus pool for the the product of its fast parts division.
But -- took a shadow still under intense investigation he ran that unit he was over in London.
And he's still under you know FBI and SEC scrutiny so and it's also got some lawsuits against the -- weather and a cut in half from a hundred many million.
So -- 200 people remaining in that division that's about 500000.
A piece -- still sweet.
When you -- -- up against you know Bank of America averages 400000.
Of course by the way this'll change because of headcount.
In each of these companies but I've also got -- you know Goldman Sachs is still around sticking around 500000.
JPMorgan Chase if you work very good about 378000.
Morgan Stanley they're gonna get about 235000.
So again vetoed it depends -- the -- -- company.
But is still 500000.
Is kind of great it is that we're gonna AIG -- basically the funk division.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Stock based -- There's a fight behind the scenes about -- what I'm hearing what I've put calls out.
So you know he went on -- at that pays -- went on the Airways who went on ABC today and said.
You know look we are working really hard we are not getting out maneuvered by the Republicans on this and he's saying because -- Bonus contracts.
Will back in 2007.
And they're old bonus contracts and so they had to adhere to contract the fact that he's getting 45 million out of a 168 million.
That was paid out last year is he's gradually pulling that back and that's something because again you know they -- had court -- on their hands.
I don't think I need to lose Republicans and Democrats in the future that one boy doesn't seem like it's B one out by the other party -- I don't know why this bothers me way more than -- sacks.
Bonuses and I think it's because they haven't given the money back.
And so they've given nineteen million that they've you know the employees of that division they're they're supposed to -- -- 45 million out of a 168 million permanent big knocks you back in the last year in the headlines about that went.
If we're getting at the rapes and -- last year until that yeah yeah so we are trying to some kind of -- -- back but yet not all of it.
That was the other stick you know Goldman Sachs say what you want begin back before they paid out there agreed to -- retirement given that the TARP money yet the -- -- the bothers me the most you know what defer these bonuses until the monies give back then.
I -- -- in contact cola -- machine and they deserve it now has a different way to make him I don't know I just I feel like it's a awful -- are right now on I get that.
I really do it on the first person and it's your contract -- the thing is is that AIG they've got this this balance sheet right.
Of all of these -- and they're cutting and a half at around 900.
Billion it was.
-- if that's the latest ballad she's like it's 8901 point eight.
Wherever it was yeah I took -- huge.
And so they you know keep those people in their seats to do the job that's the -- against him.
Yeah that's what he never -- right owners that you deputies -- there -- Us -- -- not be so patient as they unwind.
These bad debts aren't we mean it isn't a mom that is in six months it is even a year you're gonna have to wait and wait and wait for the taxpayers you paid back all this money.
Yeah -- and I say I do know this for a fact that if AIG player walks away from that contract.
Then the other side of the party -- side of the trade.
Gets to say the contract to the -- is Null and void and gets to pull taxpayer money out of the Yankees -- so that's -- they gotta keep those people that's like a hundred million dollar hospital and had then been busy night there.
You -- some are as Smart person I know -- you don't believe that there are Smart enough -- stuff.
Ewing Chris could go into edgy right now and unwind these -- I couldn't issue couldn't -- -- it.
It's -- -- -- that they agree but it's written into the contract that's why didn't you know the people I know that if I have to say thank you good to -- don't drink Ken Feinberg is always going to be -- Cavuto tonight -- you don't want to miss that here on the Fox Business now check in that's collapsing details all of this -- that all of this I thought -- something else if they will have some Smart -- well.
-- -- -- -- back above this is dot com -- we are suffering through a down day on Wall Street down 54 on the Dow Jones Industrial Average this of course.
After enjoying the best two day rally we've seen in three months so -- choppy.
Time for sure choppy month really looking back over the last you know you can go back three weeks on the marketing we've been all over the place and volume has been bearish -- been not great in either direction but on days and we that -- -- has been more.
Then on days -- -- finished the -- higher so that's certainly is not a very good sign.
-- obviously there's some things moving this market go to the downside when you got.
There's -- -- actually but you know I had -- incumbent on the numbers like in this opening you can.
You can cut -- these numbers anyway you lock it his best game since down to luck -- -- -- any -- yet and I think he didn't say anyway no -- -- at the end of the day that there was definitely -- I know that I've listed in a hundred times today.
You could placing them at an accountant I took a billion statistics class didn't can make any number look pretty.
And the government must do -- -- with the lead I gotta go I'm on foot in my -- a little bit could.
Pull up Polo Ralph Lauren is not my loser and I actually yeah.
It's a loser -- at what you gonna scoop graphics but you got your your I think everybody's got together with some fiscal third quarter earnings rose.
Above or sustenance they said that department stores remain -- ago and they said that there Asia Pacific division is going to weigh on their earnings going.
All were beaten -- sacks and -- it's down about 9%.
Ralph -- actually was -- is the silent.
In the retail space I was thought that was -- solid it's a life.
A cool as well anyways you -- -- you how cool is.
The crew you know he usually is all laid that you -- -- -- numbers -- you like him seriously -- -- -- I got sheets I would like -- Honda no surprise benefiting from the fact that Toyota is not.
Honda raises forecast for the year after cost cutting contributed to -- strong quarterly profit.
In the last year and a -- Cost cutting but nevertheless I'm yeah -- back here.
Something on the fan.
-- -- pharmaceuticals.
Of these and idealism 90% of its well that's essentially attempts and I had a better when few US Food and Drug Administration giving marketing approval.
To -- injection it has for condition that affects connective tissue beneath it.
Skin on your -- Who -- really gets -- And I unexpectedly.
Marks the launch of the drug stocks that it's -- What is often -- fans and the sweaty palm I don't know actually -- hand I don't know I think Botox and I hit my can one.
-- I -- I love Acme Packet.
Because I HM exactly you think gov.
That would -- -- coyote and road Larry Larry Redman.
Actually that isn't -- -- if we're gonna profit more than doubled on -- elves we like that and marginal these elegant do you get like the rocky it's Connecticut dynamite and -- -- -- -- comes in the packet it's an Internet security coming but the best is in the know cut in the old days back Monday when we looked -- the yellow pages.
You wanted to be a day a -- Inspect their great great committed -- and perhaps -- happened three days at.
I expect another line here do your big -- Home Diagnostics actually detect but this early today after battening the course and -- -- -- -- -- you -- a guy.
They make it diabetes.
They made diabetes testing supplies and then -- bought.
Exactly by -- -- local -- for about 215 million.
And this is Charles was make this a job money is saying this is it's another case of an American company -- -- -- Chinese company.
And they're there you go -- to act that's great -- and he talks about that off and we did have a problem remember back in the early eighties late early ninety's ladies.
With a few that -- Japanese bank meanwhile real estate that I.
I'm -- I'm not -- -- -- in every building in the United States didn't quite happen but that the most news I think there are out.
By and large well but -- got seven debt issues these days that you know.
It's so it makes our dollar -- good.
-- on -- here president and chief investment officer of RI -- investment advisors he's from the south.
It's always nice to bring in somebody from -- Dixie from Savannah Georgia.
Com what do you make of this market here really choppy the last a couple of weeks of hard to really you know get -- -- when when -- Actually Chris I think.
For investors if you think in terms of investors right now.
They're getting going to have -- protect my assets maintain my lifestyle mode as opposed to the recovery that you seen in the last six to eight months.
In stock prices in anticipation.
Of -- recovery in 2010.
-- their worries being developed at this point in time is that recovery for real.
Jobs numbers this morning from making.
But it's still negative men and we're still losing jobs so you have to really question whether this coverage coming in place.
I think that's what investors are struggling a little bit with here right now they're also struggling with that inflation vs deflation -- area.
On the deflation -- side early in the day.
I heard you talking about real state mostly lows.
And our firm we like to take things in a simple rules for complex issues.
The simple rule here is real estate started this bubble real -- propelled this bubble the ability of a consumer can use an ATM real -- card.
In rising home prices successfully promoted all the consumption which promoted the growth from 2004 through 2007 and eight.
What really worries us in that real estate sector is the all day.
And they are -- stats that are going to begin in May and June this year.
-- substantially as big as the sub prime resets that put this in the throes of the 2000 crisis.
I think Bernanke and Geithner -- well aware of what the problem yes I think that was probably some impetus of why Geithner gave us some nice Christmas they present to the taxpayer.
Guaranteeing all of Fannie Mae and Freddie Mac's liabilities for the next three years because he's well aware of this real -- problems so in the short term.
You have a real definitive worry of deflation affecting the balance sheets and we continued this deleveraging process and whether this recoveries for real.
So you're from.
Not Wall Street area right Savannah to me takes me back in the night garden of good and I've never been made to go out -- -- -- -- -- we -- -- -- a wonderful place.
We have we hear very Manhattan centric all we talk about as Wall Street what people down there I think do they think Wall Street is at a bloody mind robber barons and right are they -- do they ignore us and just worry about their plantations and walk around with them.
That he did not give -- not welcome and it -- is terrorism -- really long time.
Do that because I -- -- -- I don't think they I don't.
I think investments in the south very different from the northeastern -- of the west of the midwest.
The word worry we have the most is it appears Wall Street -- moved to Pennsylvania happen.
And every time we turn around a video and it and we we had new regulatory -- -- That is making it very difficult to make any forecast in the equity marketplace.
Because when -- traditional -- stepped out a year ago and became a player.
And now you -- regulatory change after regulatory change.
You cannot forecast with any degree of actress TVS and 15% S&P is financial the financial stocks.
Every day we see another piece of legislation attacking the financial -- become a popular thing to do.
Let's go get all these greedy bankers -- -- as our -- president prices today.
The real problem -- the -- if they're gonna do they get away with it was the regulatory.
Environment that broke down the didn't enforce the rules that were in place.
So he did that worry of what is the president and what is congress going to do next is a big concern in the southeast is I think it is everywhere.
I think the leading thing there right now is the health care of him.
And like it or not she going to get up.
And when you get -- health care package to me it looks like Medicare the seventies all the -- you don't have thirty million new people.
Who -- going to be paying into this health care system as opposed to -- you care so what does that mean for hospitals big pharma that type of stuff.
It was a windfall in the seventies and a lot of money.
Is it this time around we'll have to wait and see.
Sounds like look at your notes cliff do you view what -- -- you believe in the W shaped recovery here that we've got another double dip.
You certainly are bedding down patches -- -- you like gold you like a big gains stocks multinationals.
Paid good dividends sounds like you're trying to get -- -- -- You have to be defensive this is a time for defense not offense.
We look at the S&P right now fair value based on our earnings projections somewhere between 875 and 925.
So with these levels you you got a little bit of an over valuation problem that's been promoted I think.
From my Bernanke's our policy -- colleges and zero interest rate policy.
As long as circus in place in the dollar carry trade takes place you gonna continue having the speculation in the commodity play issue in the -- to -- some.
Little -- of all -- speculation US stocks because.
You risk appetite.
Increases when you've got to zero interest -- for your savings it forces people to put that -- some point.
How would you know holding cash today is the most painful investment choice you can night.
It might be the right choice given you won't like for the next opportunity but clearly holding -- puts the African -- and -- predicament.
If you're retiree Foundation's.
People that need cash flow to Latin.
And it doesn't help that they're gonna cut back on deductions for the wealthy and tax rates are going up and all that.
-- fishing knows you still like some health care stock she still like five or even though got hammered today Newton -- stuff like that how come.
Know what the next new new things going today.
I think the next new thing is clearly going to be in bioengineering.
And the way our bodies are treated over the next twenty years by the health care industry.
It reminds -- in 1974 to 81 I came on Wall Street 81.
At that time nobody was -- things were in the doldrums but it was during that time there was a guy named Bill Gates created Microsoft.
And -- jobs creating Appleton we had no idea in the next thirty years what the impact of that was going to be.
I think in the next thirty years the big -- news going to be pharmaceuticals and bioengineering.
How we -- tissues in our bodies how we remain healthier for long periods of time.
And I think big pharma is in the position you mentioned the acquisition earlier was an HP IX I think -- assembled it popped up.
That's going to come warm water -- across these big well capitalized pharmaceutical companies again sit back.
Let the developing content companies take the risk you are indeed let the private equity take the risk is opposed him doing the aren't they.
And then simply make the acquisition so it's a matter of the strong get stronger over a period of time six months.
You may not mean that we might suffer you know Lipitor coming off the -- in the Arab fighters.
But long term you can't deny that these -- the behemoths of the industry.
And they understand global distribution.
Like no one else -- good to see you thanks for stuff and vice Chris thanks for fans -- -- -- and I cut cut come visit me at the plantation.
Good dog president CI AL law.
-- investment advisors it is that there are no plans a conflict -- and arms and things like that that.
-- Well -- with Clinton you -- maniacal and.
-- behind in the environment.
And I talk movies and -- them.
Dot com live Tracy Byrnes Chris got a 12:40 AM East Coast 940 on the west good morning to all of you out there market -- about 33 points a little better than when we started -- -- -- -- -- -- is kicking -- Don't forget you can download that fabulous app on your iPhone so that you can watch us in.
Right and -- -- -- and Savannah Georgia.
Los Angeles ago at a beautiful I wanna Wear corset if I go down there when those big old you -- where there are listed and not immediately get away and 81 of those things -- like you have to you need help to go to about the whiskers OK yes essentially a metal mesh yet.
The student and I think I wanna carry a little weird things on him and I'm.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- And company of fox.
I had a very good quarter yesterday after the felony not only that I had to rebound instead -- -- -- advertising sales -- -- of you know that's a really big deal.
You got -- is about payments for television stations.
And really this past quarter which is fiscal second quarter from his quote doesn't even include avatar -- talk about two billion plus at the box office.
Hitting in the second half of fiscal year 2010.
And does so you know.
-- -- -- there.
Optimism about the next six months has gone up and we're talking about operating it income in the low 20% range.
As opposed to in the lower.
Double digit range from like 101112% range so.
Much better for news quote moving forward Time Warner Cable as well today what Time -- of course I should say -- have a great -- this morning since the media companies.
Reporting some pretty decent numbers move and -- That's a good sign an ad revenues coming back then -- that's something and it's it's you know.
It's a little things we have left a lot like that were entertaining ourselves another big step is god -- -- Being vacations big houses big cars.
And -- TV movies and certainly Sony Pictures enjoying.
This past week when.
The academy of art and sciences -- the nominations for the Oscars because eighteen.
Oscar nominations for Sony Pictures right now John -- executive producer Yahoo! movies joins us right now and Sean would you agree with us that conversation at chase and I were just having it looks like.
Things are looking pretty pretty good for the movie houses right now -- -- twentieth century fox and avatar please Sony Pictures with all the Oscars -- -- like a pretty good time right now.
Is you know it's always a big time for a -- the different studios the of this is that it's all about the fanfare it's all about you know celebrating everything that just that this happened over the last year so.
And I everyone's always always pretty geared up and you know course -- this year ten nominees for best picture.
Because a lot of three with a lot to be excited about why is that if that is what is labor in that particular that's just the money making deal like ten instead of five.
United is it's it's for the audience you know presumably it's supposed to be for us the people you announce that we.
We can kind of locked into the couple movies that we we did see that we did love over the past years don't feel like it's just.
-- about smaller movie -- which in is.
Sort of just beautiful as far as a tactic because you know does it does it also kind of demean the level yet of being an Academy Award nominee in and edited -- it because you know.
That's at 110 yeah I thought it was -- five movies now as an extension of kidney fifteen mixing on the make moving astronaut.
You toll could I would you know from -- two and did you cannot ever ever ever ever read the script but you that you're going to be eligible -- mean.
That's -- it's a good that it hasn't heard him.
-- -- -- -- -- We'll take it does have some cash though right even like here's -- low budget movie the minute it says it was an Oscar nominee.
It's it puts it a very different level.
A toll -- -- you start including a from the business aspect you know there's dvd sales and then there's.
Re release in theaters and which has happened customarily of the last few years you know when movies like slum dog millionaire and and there will be blood -- No Country for Old Men -- no I'd really initially quite small audiences but they -- able to you know have to -- market -- and and then really make some money on them you know but but in the history you know of of Oscar time he used to be that.
Well the academy just shows that however number of the great movies per year it's Oprah -- 1939 lot of great movies that you're in a wizard of -- and and gone with the wind leading the way and you know there were ten movies there but they kind of just -- whatever the best movies were so it's.
I guess they could say -- harking back a bit -- tradition you know -- -- to defend the move even further.
But but clearly this is trying to draw you know it's that weakening audience when you watch the show and that last year was like third worst.
Ratings and -- the last twenty years or something like that and you know -- -- -- trying to boost that TV you know the selling those ads for.
Lot of money on the show.
John back in 1999 neglect in the way back machine and I -- -- Georgia Tech quarterback -- Hamilton was robbed -- the Heisman Trophy by Ron -- because it was a career achievement award.
Mom -- said -- that in as a preview -- awful lot no and don't you know god why does this happen with the Academy Awards is loving that artists in this supporting act thirty -- Stanley -- you know it's on you -- something about him and his role in the lovely bones.
Do you have situations like this that he -- woods where somebody wins it simply out of you know.
Because of what they send out their career -- so -- this one movie.
I'd love to defend the academy and say no that never happens but.
But today it really does the united says like you mentioned happens in sports a little bit -- it definitely happens with the Academy Awards you know -- you mentioned Stanley Tucci who's had a now fantastic career and you know he had actually another fantastic role last year was again once again -- Meryl Streep in Julie and Julia.
But this in this nominations for the lovely bones like you mentioned but also Jeff Bridges.
-- for for crazy heart which was was actually a movie that barely released theatrically.
You know it is a powerful performance but he's been nominated four times.
And he he pretty much looks like the favorite in the -- the best actor category.
-- -- was.
Awesome in Julie and Julia I -- -- -- it's my only film on the list that I did -- so I had to make a comment about it Titanic and I'm talking about telling what do you think's gonna win best picture is an avatar.
Avatar has the obvious that has the momentum it's interesting because you know avatars -- all this momentum through the you know the early part of the the awards season whereas something like up in the air.
-- -- the George Clooney -- and -- you know there's several supporting actress nominees I mean I you know best records in all the main categories but.
It was clearly there were no there was no competition back -- -- September October you shortly after the Toronto film doesn't -- Up in the -- was going to win but -- now avatars have tons of momentum but as does the Hurt Locker you know they both got nine nominations.
And and they're both sort of war themed.
And as is in glorious bastards so I think it's gonna come down to -- any of those three out of the ten that when it depends on now what the academy likes for their brand of war movie I think this here.
And is Sandra Bullock -- lock.
She is unless Meryl Streep.
Slips in there for another one of those career achievement type thing the media she does have two Academy -- have -- for sixteen.
Nomination now could instantly -- and and -- went -- -- help me.
I don't know tellers product I don't know double dip no knives in a -- 14 I was Kramer vs Kramer and and when you're own you're totally right actually she -- -- for devil wears Prada political I've got to.
Was -- lifetime not.
I thought that was a lifetime -- when she got that one actually so ID in the I'd be surprised if you wanna get even though she was amazing in that movie.
Richard who's a breakout star what what's the name that maybe if -- hadn't seen all these movies from that night -- what we're gonna remember.
I think you know I'm in the in the actress category -- might be.
So they don't go with either standing or or -- it might be one of the young stars so is it might be Gabby -- -- and she's the she's actually the star -- listen and it totally unknown -- came she came out of absolutely nowhere the director Lee Daniels.
Found this girl decided all right -- on the give us the world -- -- she is such -- it.
A strong powerful -- especially for -- first time -- -- motion picture actress Susan and -- man to be issues such great sincerity you know an interview where you get you get so tonight's and I spewing from her and she's.
He would actually thought that she must be exactly like the character -- -- to have nailed it so much in her first try.
But but they're -- just kind of Bally girlish and you know how that -- -- pull off like this this sad tale of you know Harlem urban girl so up.
She may be one of the names remembers you may -- -- looking forward.
I -- -- I love this stuff.
And I I will be the first person to say that the only reason I lots.
For the dresses and I'm not I'm -- to see it honestly.
Thank you so much John thanks a lot guys builds on that given time the year is okay is we'll end executive producer of Yahoo! what's your -- us from LA.
-- -- first woman to say Eddie George Clooney's very underrated actor a lot of people you know it still considered -- -- community -- -- and he's a fantastic actor.
In the Michael Clayton he's blue new ways performances as -- it was seen that movie OKC go see them -- for me.
But I like him for best actor in I -- really hard I think for avatar and been on the movie side so I think up in the -- -- them -- believe and seen him.
-- -- -- -- -- -- -- -- -- -- We had to break we're back and.
Hi welcome back that's been is that countries -- is Chris -- It's a legend in -- and you're right now and the reason he's a legend is he shows up on our Saturday show remotely all the time someone what Chris has hit him when -- -- go -- And packs there started mint dot com mint dot com fabulous personal finance site help you get your life together.
People in their twenties and thirties in my -- and and then into it just a direct -- you know overnight.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- At into -- he -- said you're the youngest exact play like at two billion years probably buy ahead ten or fifteen years yeah I've gone.
It's going well they give me a lot of latitude and we've started to integrate to -- -- technology across the whole company how is that just in general from being acquired.
By it by you know this is the year company comes in a very well known name -- into it how's that been for you kinda get that -- him.
Well so far it's been really good we're certainly -- a a lot of uses over from Turbotax they have point four million users there.
So our growth has been really accelerating we're thinking about internationalize it which you can't do in your small company we just had 35 people -- -- the resources to think about that.
And then -- will be doing something with online banks in the future.
We can't talk about what's going on -- Internet but one of the things that we -- why we always loved having you on was consumer so practical in the infancy and worked at your apartment.
Nearly hired anyone kept costs down didn't live extravagantly.
Do you think that's why you've been -- needed because you were pushing yourself beyond your means.
Yeah you know in Silicon Valley I lived on about 30000 dollars a year in silicon -- is probably as expensive as Manhattan to live in I put 50000 dollars my own money into the company in the beginning I was like half my life savings.
Didn't give myself a salary for the first year paid people about 30000 dollars a year when the going rate was a 100000 dollars.
Just by convincing them that it was a good idea that if they took one or 2% in this company.
That they would make more in the end.
And it turns out they did.
I have news into it but from what I know on into its -- booking bookkeeping.
-- had as you are product feeding with what they do and how does bringing people of from the into it makes sense.
At some the general manager of the personal finance division and -- into -- so quicken is the most well known product probably it into it and now under my teams -- commands ten million people use that product.
So we're taking in technology putting in the quicken taking quick and technology putting it means to be able to use your finances.
On the PC on Mac mobile online in a very seamless way whether you're just starting out.
All or whether you have very complicated finance I have made so are you telling me then that.
Your program can look at how somebody manages their finances and says I you can save money by doing this -- you'd be better off putting your money here are making -- in this area.
Yeah we actually have this thing we caught our waist to save engine and it takes a look at all of your spending all of your balances all of your interest rates and says.
You know you really -- to move to a high yield account -- -- really got to use this broker because it's going to be cheaper or you really got to roll over here for -- -- -- -- paying too many fees zero could.
Contribute to and hiring instead against you know help.
So much because like you know like I never look at my flow and -- I never look at all that stuff.
I'm too busy doing nothing.
Black kids -- you I didn't find appropriate to do with more.
Explain to people out that it's easy that they really -- you can import from your bank you can import most of the information -- to just sit there and that's right there's no data entry required we sync up with 8000 banks today so it'll cover every bank that you've got we've actually got 161000 banks coming online in a couple of months to recover.
Even the tiniest credit unions in western Iowa.
And it just sucks in all of your information from your credit card your bank accounts -- brokerages even your mortgage or student loans.
Categorized it shows you how much you spend on gas and groceries army times he went to Starbucks that.
You spend more on clothes than you did not rent and other problem areas let's -- a budget.
Investment performance all that that he felt very and he found the people there are a little.
Afraid of sharing information they did that their information -- get out if you put all in the one place.
And you have banks and access kind of going all over the place -- people scared about that.
A lot of people ask that question.
So it's a read only system so we have -- data security of course even if somebody broke in they wouldn't be able to see your account numbers or credit card numbers that would be -- -- any money.
So it's completely safe.
-- -- There's an integration isn't gonna go away and we in integrating into into -- right now and eventually.
-- the -- meant -- him.
Yet while it'll prompt people think in the bill that's what we're come into -- is when they the idea position.
He'll be -- from the makers of quicken but -- is got a really strong brand name particularly among this sort of twenty to forty crowd -- -- has like an 85% awareness here in the US for adults with a strong brand name.
Going international it's it's hard to say which would be better so for right now it'll be in from the makers of quick -- -- because that's a decent point you know you say -- and you're like -- my -- -- as -- But I mean it's like -- hit you know so I can expect to see it being a tough call -- with -- -- to give up with the equipment.
You do you know -- went -- it much you.
Twenties and thirties that I'm sure -- -- a lot of data what have you found from your customers about savings had its spending habits.
Tom just over the last you know short while you we've been in this yeah.
Well first off the recession is actually good for us every time the stock market would take a -- -- see our user.
Growth just -- I'm about 90% of our users say -- actually change their spending habits simply by seeing where their money is going probably for the first time finals at the fees that they didn't they were paying.
Magazine subscriptions from five years ago going to an address they.
They no longer live that.
A full 40% of them actually cut back on restaurant spending which for people in their twenties and thirties tends to be highest sort of discretionary area that's easiest cut back on cook more.
Go out last.
-- gonna keep replaces him in the in the -- answer is absolutely and I see huge expense so what's changed in your world I mean are you seeing now clearly you you're living more comfortable but are you seeing.
Bigger better projects moving on -- the what's the next step.
Yeah you know that the great thing is -- into it you have the resources of a ten billion dollar company whereas before we were 35 person start up.
So all the sudden I see.
Bout -- the should be worldwide.
Every adult in the free world or in the whole world needs to manage their money how much is coming in how much is going out where can I save more and so it may take.
23 years four years before that happens but it's something I'm really excited about but -- still -- very.
Yet have the basic product that helps you budget pulls in all of your hear information that the intent is for that remain free.
We make our money only if we can help our -- save money by making -- suggestion for a better savings account for broker where you pay fewer fees or trading costs that sort of thing.
Aaron and you obviously you know you thought you find mint dot com.
You probably got paid immense buying into it for the product what you can just walk away gods who was he lots and they went fish for the rest of -- I don't want Mikey go and you've got to be obviously driven to -- now that's a -- that your company it is but it's part of a bigger company.
It's got to be a different -- the wake up that first morning and say well I work for really big company now not for myself.
Now you know it's and that's it's a really personal sort of question but I think the thing that I I like most I'm I'm an engineer and inventor first and foremost primarily.
I just like to build things and all the sudden you get to build in a bigger sandbox you get to build.
International -- to help the small business division quick books division or the online banking division or integrate with tax.
The amount of money that we can say people I want to get to a point where we can say people thousand dollars a year just by using our software.
It's ten million users -- be saving people more than like the gross domestic product of Iceland or.
And Bob open and it would be tremendous.
To have that kind of impact on the world.
With a piece of software that you know came from right up here at critical mass so if I go do my tax return on Turbotax is here -- Tennessee.
Hey going to try and then trying to bring you stuff over -- if you will cross contamination there you will so -- -- two -- we'll see that that crossover was the first one is it'll say.
-- -- contribute to an IRA this year 85% of people.
Or qualify for and -- a traditional IRA.
Where -- contribute 4000 dollars.
You're gonna get that'll come straight off of your taxable income you can increase your tax refund or -- -- taxes by -- thousand it's like getting a 25% return.
Instantly so you'll see that suggestion made -- go -- and and savings engine.
And the next one is the average refund is about 2700 dollars it's the biggest are unaccounted for savings if you will for an American household.
And so meant to make suggestions put that into a high yield savings account and -- -- start investing or build up your emergency fund and here's the advice and here's the best places to get the past interest rates and tax -- -- Thank you very -- Pennsylvania.
Then perhaps your insulin VPN I -- dot com founder and the what's the what's the real quick -- the equipment mint dot com thank you wanted to make -- Oil is quick hit some dead -- amendments -- it I MI LE one and a plan that doesn't get a refund and then -- -- second asking any questions to get everything is getting.
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