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It is dot com why -- week at least seem to have well another day so far at least and the down.
Right up a lot of points just about that it -- points on the Dow Jones Industrial Average -- the rally continues on wall.
I was yet on who.
Rally like it you know former quit for default are what these different -- -- and then I was out of what facts really are threatening this rally is going to be a good question we have -- our captain today absolutely -- -- -- advisors will be joining us great guest and some of the can really answer your questions about.
Real life investing is one of the -- to put it this against the Dow that you see.
On your screen right now so we will as you say see if that continues a little later -- Chuck Jaffe of MarketWatch has eight demands for the banks that are taking bailout money you heard a lot about media.
You know try to put limits on executive pay outs on a project he's at eight more ideas like that idea but I've normalcy or those ideas ideas is he out -- -- I think as well with AIG news.
You can't help but to see Nittany nation that's.
Another thing I think -- speaking of ideas -- -- from Brian Sullivan's blog is called new ideas.
I think every idea on the blogs -- -- a new one I just got off the -- on the fox does is that organs and join us later on the show because his blog today would you say it's makes you.
Think I mean you think it makes yet yet makes you really think about the connections between Washington and Wall Street and -- were also focus on Wall Street and the regulations on Wall Street will what happens what if we prediction that the regulations.
On our congressmen on our representatives and you know they get paid -- salary they have raises they hats -- -- -- perks as well so.
Maybe their pay should be tied to their performance you don't let that be interesting -- think -- has a few thoughts I had.
You're asking how would you tied to their performance would probably tell you later on this show very -- and read his blog in the -- -- are you said AIG was a big story tonight.
Last -- checked.
We'll see what people think of that story -- just -- while but we have to get proper grain here the good doctor to tell us the top news of the day in the rally continues on Wall Street what do you know -- -- -- -- It is commitment.
Yeah he didn't pick my Tar Heels to a and so I decided to happen like you fill up that record but I have not filled it out yet and -- -- -- better I feel better about it but anyway that's neither here nor there though it's not.
It will be in a couple weeks but right now we're seeing is we are seeing indeed a rally -- talking about.
It's all about the financials once again I mean we did have been the Fed Chairman Ben Bernanke on last night on sixty minutes rare interview for right head of the Federal Reserve to be on.
National TV had happened in a couple of decades.
And -- I think anything new but he was saying it two different audience holes to start talking some folks this morning traders about that it.
You know he -- sort of the same thing on Capitol Hill and we follow this on a day to day basis for people and you know sort of main street -- who he was addressing this yes he was literally sitting on May not -- -- in his hometown of Dillon South Carolina in the interview.
Nine in sort of just you know in -- more folksy manner it's a divided green -- that -- -- -- former Fed Chairman -- people -- understand him for years.
You know have -- a bite us than them we understand is crystal clear to us.
Not my fault but now but chairman Bernanke really sort of delivering this -- message that we're not going to fail.
-- -- to -- government it's gonna do whatever is necessary to make sure it happens on that would that it is today though people are saying Bernanke -- that's part of it what you people think that Barclays really -- if you look at futures particularly overnight when it came out this morning -- the fourth bank in a week.
Saying you know what.
Business is better right what is you know -- -- say Citigroup -- Bank of America we can go but certainly that stock nearly over -- in London jumping up the eighty -- here jumping up strong start to the year I think that's what they shot struck the area and you know to mussels and oysters business -- -- doing crunching some numbers.
Think it could be worth almost 800 million dollars if someone does the exchange traded funds.
That Barclays of their business here the -- the -- a lot of industry urged people all of like -- mutual fund that you can traded throughout the day it's the waiting till 4 o'clock.
In the trading to get -- now.
You know let it cool content we have really play out from Ben Bernanke at least this morning haven't heard talk that yet is what he was asked -- the banks solvent.
And he said yes yes act decisively yes yeah courses there's lots of folks out there that disagree with -- that these banks are not.
So often but when the Fed reserve chairman says they are you look at that -- -- -- Says that Nouriel Roubini was up yelling at his TV -- That there's no doubt -- know -- that and I'm sure some other zones thing you know we'll print as much money as necessary we're going to be talking about that in the next hour.
On the on the network and also you know traders -- taking this -- a lot more interesting and lastly given that we had a huge rally.
Last week because we're gonna get some more data points out this week the Fed's meeting for two days when here.
What they have to say since -- can't really lower interest rates what else are they going to be doing are they going to be announcing the long awaited.
-- you know and give that -- we're gonna buy treasuries people waiting to hear about that.
Also we're gonna you know get -- inflationary reports producer prices consumer prices later in the week Philly -- always a good market moving guy indicator of how manufacturing ten -- in the mid Atlantic area and states actually had a trading at Rydex investments and we just a few minutes ago he really would like to see.
Some bad news or or sort of negative data points -- -- see how the market reacts to that that we'll tell us.
Be the first clue whether this is just a -- balance or if we've got some solid footing if -- can shrug off.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And we solve the financial -- was taken extra leg up at the open on that those headlines they're gonna look at not abolishing it.
But making some changes easing relaxing more judgment was the way it was -- -- -- The in them and mark yeah all right Robert thanks a lot appreciate that you know we were talking about AIG which we're gonna talk about here in the poll question and you people some people saying there 02006 we talked about them or you talked about it talked this morning earlier about how big maybe people will desensitized to this worked out if there was.
Was she going to -- the sick and tired of hearing.
I ever -- say like a Larry Summers and Ben Bernanke saying how angry they are about how outrageous it is and you hear all the news.
-- reports including our own which I was frustrated -- -- -- how outraged taxpayers are and what and who's doing anything bad outings okay so to what I would become angry sit and -- -- -- and you can't question coming up here what should they do with the bonus money and that's to the question they'd be giving it back.
Honor the contracts are firing people responsible for bad.
Investments so it's you know obvious to see how people vote on this because.
It is it is kind of a legal question.
It was kind of it is a legal question -- that -- binding contracts but it's a time when we care about contracts now that we didn't whenever you.
Mortgage cram downs we're about to break certain contracts so contract -- it's become this big topic of discussion and and you know when does a contract matter vs when.
Are you able to break it and -- -- your own way.
I thought -- Gracie.
Maryland school of economics he's talking about how would the government of course keep that behind me to be out of makers yes and part of it was when they got that money they had to bring it present financial viability plan and really without saying directly part of that plan is that they had to renegotiate with the unions -- -- there is no other option they're not gonna get the money if they.
Fall apart -- the economy is going to be suffering because that's a very similar kind of argument that we got for AIG.
-- AIG got more money.
They did have -- have a financial viability plan that they had to cannot let C have auto workers they have changed their contracts are really.
Highly encouraged to change their contracts that we -- have any of those bonus contracts and that clean -- and -- right at the.
It's a very good example that sudden it's Peter -- brought that I get -- about a very good example so that so that we can talk about Kathy Boyle will talk about the markets and everything else and Chapin hill.
Great to see you Kathy thanks guys coming in.
-- you watch the web show from time it's something that we saw your name popping up the board now couple times more of course never.
I did actually I -- -- -- start there's this is the topic of discussion people on the border already commenting on it and that's just says it was all this anger so to speak about.
You know that the but those bonuses were handed down but it's something we should be as angry as some people are or as surprised as other people claim they are.
Well I think people are so upset with Wall Street vs main street is really which are getting in this is just more of the same.
And I you know a bit of Wall Street keeps their people by giving a bonus that's left over from the old way that the eastern partnership from the -- to take a small base yet.
And then the end of the year into the bonuses out so unfortunately that's still -- Wall Street is -- so one of the dilemmas just keep their top talent they need to pay them bonuses.
Did you feel comfortable with the top count the same top talent that was over their firm -- I didn't even know Hamas.
Staying -- to have the recovery.
Obviously not there's you know this -- something going on that needs to changed.
Whether now is the right management team to lead was led into it but you can say that about almost everybody else Bank of America Merrill.
You know Sid yeah you know you can write down the line.
You know I've AIG what -- period as a person that wrote in second guessing that's an alias.
But they say.
It will all be over by August now -- had nothing -- over meeting AIG will be over and done with this -- talking about it anymore.
Whether they're talking about the recession at -- -- a little bit about how you're gauging what's going on right now.
A little bit every covering the financial -- -- means that if I kept my when he -- -- -- I can't really -- think and where and a bull rally with -- a secular bear market.
We're only expecting this rally is a little bit further it this two scenarios.
Either we come down to 707 on the S&P in the -- at the end of the middle of this week really and then another rally back up to the flow around 790 where we think yes we get to.
And then we're looking at six tornado possibly 545.
Ford is pretty low.
Yeah it's interesting though because you -- there is this debate going on -- somebody was on the air on the opening bell -- me today making.
The argument for the stock market being this forward looking predictor and we're going to be.
You know we could be 69 months -- I think using the Bernanke argued -- at the end of the years when the recession ends in 2000 -- when the recovery comes that this.
Rally such as it is could be for real whatever that means but that you're you're much more pessimistic about the economy long term right.
I am I am I think we have 78 million baby boomers winding their way through.
We had access all the way up a lot of what drove the market in the eighty's and ninety's with the baby boomer have been moved houses and therefore the -- went up corporations paid them to move from house to house.
And -- -- just drove the market up when they doing out there and distribution -- And so they're pulling money out of the -- comes out of there -- -- one case out of the retirement accounts cure and the house is worth 304050%.
Less than what they thought it was worth.
Thanks for investment purposes they'll be they'll be much more risk averse right have been moving from stocks are high risk investments to bonds and other things especially after they've been burned at the dilemmas that they actually need to make capital back to get themselves and their positions so.
We think this thing could go on to 2014 to 2016.
-- -- way.
Now I'm just looking at Geithner Timothy Geithner along with the president are going to be speaking momentarily about her will or waiting for that to happen -- you can -- and the Fox Business Network.
How we're going to be talking Griese gets the headlines the way things are looking at right now at the text you.
-- Geithner speech which is not environments we could talk a little bit about it and it says that having to do with small business -- that there's reports that he had about some small business loans.
I'm just looking through -- that they -- while -- do that maybe you can.
Talk -- us a little bit about these fans we have -- We're gonna work -- -- this small business ideas as well from Geithner and President Obama.
You do have that the stimulus package you have questions of whether we're getting a second -- package you have tar.
And we have multiple programs so that being said then.
Or what he thinks -- work with this economy what does it need if we're -- -- making -- then this is a recipe what are -- missing what do you like well I think you have to continue.
On the shift that we're no longer industrial nation we really service economy.
And small businesses actually higher.
More than a large business especially you look at the women owned businesses.
Women owned businesses all hire more employees than fortune 500 combined at this thing which is really if -- -- -- -- to -- what happened back.
So encouraging the small business on revealed on naked through this recession -- everybody's cash flows affect it.
Everybody slow -- we hear that over and over smaller clients are clients in measuring this day vs this day last year were seeing declines.
On that day depending on what kind of this sensitive.
And patients and I think he's saying she's gonna -- this is Tim Geithner asked the bank regulators tab called for a quarterly -- -- of annual reporting for small business phones this is all about loans -- loans to small businesses.
I provision lets see I as far as the recovery -- goes a provision at nearly double that 250000 dollar in not a new capital equipment investment you can write -- in your taxes so looks like there's something like that -- for.
For any type of equipment investment you're doing so it's doubling that he can to have more on your anger tax write -- which has been a criticism as far as new budget Manges.
Let it -- up taking advantage of that tax the requirement.
Some programs to get the credit -- rolling again I'm not -- exact numbers of atmospheric appeared as.
Direct to announce that small businesses will now be able to carry back there operating loss despite instead of the usual two years nor an increase your cash -- to cash position so looks like you're doing -- things to help under this is exactly.
That is very key and also remember this -- PR campaign.
Right you know that's one thing that they've learned look at it where they've been showing up more trying to proactively get a message out because they've been on the -- -- Took a little bit ahead for not doing more for small business are under these measures to -- talking about terms of tax -- awful kind of health news -- the blood to some degree on the -- -- 50000 dollar limit which were you know what every think of having to raise taxes or -- the bush tax tax cuts expire.
That knowledge that hit people whose annual income may be over 1050000 dollars -- a family but it hit a lot.
Small business owners absolutely and remember if you suffer a lot when you're running your business when you started up you go without income for number of years right people might look back and say look at the successful business or making half million dollars in -- last year.
But how many years should they go with nothing how much of their own capital the Koran I know I -- a small business.
And you know -- you will take advantage of some these credits if it makes business that -- If you're going to make -- equipment investments and things like that and looking at what headline here saying.
The above administration's action and announce that the 21 largest banks receiving government money are going to have to report monthly.
And how much lending AG to small businesses write this -- -- Branson is that enough to have that reportedly if you're small business and you're suffering I mean.
He might be looking for alone but is that I mean that could be indicative of what's going on credit markets -- that -- judge.
What's happening right Ellis -- -- -- -- and -- -- alone can -- -- increasing airline credit when my client is asking about a large line he has available in the as part of the -- down in the -- -- million in cash the F refuse to -- it down.
I actually told him not to because what we're afraid of the city pays part of -- -- they might shrink his availability count really and so that's one of the things were really concerned about so we're looking at clients making real hard decisions about.
You know employees going four days a week.
You know pay four or five days work or every other week taking a day off.
Should they can keep people employed because the other thing you don't want to do is take your staff down so low and when business starts coming in you don't have the staff ready to take advantage of them.
What is frozen mean by the way mean that there were times during this whole crisis back in the fall when.
I think he could've argued that it was frozen solid like almost nothing was happening inside these credit markets -- -- under the impression that some of that has started to thaw out a little bit and improve but you used the word frozen again.
Do you literally mean frozen -- just mean it's difficult still for people to get -- -- other part pockets of the credit market.
That are improving and -- expect programs like tell for example of it to improve that even more.
Well I think what you see in any credit market is if you have good credit rating of good cash flow it's easy to get a lot.
-- right unfortunately those people are okay -- and they always had already is yes your problem is that most people don't wanna face reality you don't face your business continued decline.
He sort of just give very anxious just for that person does that the portfolio -- -- -- And so you really worry about it but you don't really take action -- you don't want more debt.
So when you go to the bank generally -- sales are down your receivables are lagging longer.
I don't payables are -- coming in this quickly.
And so those are the kinds of things and once the banks seized those sorts of flags -- -- get very nervous than you should want collateral.
That a viewer write in that they can't afford to hire people for their business right now and also that.
We should believe and probably a small business owner -- -- in that position.
This is an interesting question we talked about you know solving have problem with with more spending and so one of the guests -- -- right inching into the government's forcing now housing loans in -- that refinancing mortgage modifications.
Now -- -- business loans and create another bubble is that something we should be worried about pre -- I don't think we have to worry that a bubble in in debt I think the bubble -- for the treasury market actually as we have a ton of money on the sidelines.
But they trillion dollars so that's why this market rally last week took.
-- that strength is because you have just a teeny bit of that cash coming in a push things out but.
I don't think the debt market -- say I do think the deficit is -- to very many people.
And the comments from China's premier this weekend that we are -- debtor nation at this point in Daytona.
Yet I also feel that -- -- back -- but we talk about this last week a lot and updated -- resolve the -- or not to buy them outside the cut back on the amount of treasures that by the Chinese.
-- -- deep trouble.
Right we grew very -- not just and the Japanese and others but if they had the largest home right that the Chinese were cut back we would would -- wonder they if you know you wonder the bluffing or that.
But but at the same time they're not getting much return certainly a much treasuries and and there they've been -- if they're serious about being worried about the future the United States economy everything up.
You know that they start to pull back then you have this cascading effect then you're really talking about.
Crisis right around absolutely and the other thing to remember is the US consumers that personal savings rate goes up it just comes right out of spending.
And so that it Goldman actually thinks is going up to 8% from 5% where it is now or maybe at -- corporate somebody's -- 8% to write another increase.
But the consumer -- -- at 7% of GDP in the US.
It's something like 37%.
Of world to -- And China does not could soon.
And they package that they are doing is really geared towards infrastructure not towards their own consumers so.
You know they have they want to point fingers apart and this is you know everybody the blame game but there's no other country that take their place.
Just thinking about -- on the brings a -- records -- about debt -- you mentioned your baby boomer argument already which is you know this that kind of the longer term.
Our argument for the changing dynamics of the country but in the short term it in terms of mortgages which we we've coming -- away from talking about.
You pointed out on the streets of the notes here that that we have a lot of these all days.
That are that are coming up for -- -- I mean we've almost forgotten about the quote unquote sub -- problem and about the arms in the adjustable rate mortgages that are.
That are re setting but you think there's another downturn and all that.
So I absolutely do these all -- five years ago the peak on issuance was 04 -- 06.
People got five -- arm -- yeah rates were so attractive even now we have clients refinancing for 55 your arms -- four point 75 because they don't wanna pay that five and change.
First saw the -- jumbos anymore.
So nothing above five -- change of six and change depending on your state so if you have a million dollar mortgage you're in trouble.
You have to pay down 400 or sports and change in order to get a mortgage these alternate people were somebody who had -- and their credit record.
If somebody has since lost a job -- -- -- credit card debt has increased then you might not be able to get.
What's the timing and as I think I've seen -- charter in this before but what's the timing on those resets and when it really becomes a problem five years is 04 -- 06 cell phone nine to eleven so abnormal and -- like he really June is when you start seeing a lot of that may reset and the foreclosure rates on the ones already being -- -- much much higher than other.
Areas of mortgage market.
Now I want him to kind of -- -- with a couple other things coming from our viewers Regina says at this point small businesses don't need or want to borrow any more money they want client in cash flow instead.
To kinda says that small business -- not -- -- on this climate we're gonna cut back.
Instead to this is -- this the reaction from small businesses.
I Chevy -- is the credit markets are not present a problem lies and demand investors and small businessmen and obviously small business women.
Our Friday by the lack of clarity from the Obama administration -- various plans to deal with the financial crisis do you think that adding it at all to have a feeling on.
Everybody's afraid of what next year and the year after my -- remember you have this baby -- owned businesses as well.
If they don't have a clear succession plan or they thought they had a succession plan and suddenly their partner.
Does not have the cash to buy them out -- sales are down in the metric that they agreed on.
It's gone so yeah you know multiple areas of this must remember that self employment tax is going to continue that he -- taxes for 13%.
They used to stop just a little over a 100000.
Since you've been in the top bracket you could -- -- 50% tax -- that you think -- anymore attacks has as well.
-- for small businesses -- for everybody is -- I think I've heard stories of doctors saying I want taking more patience because for every nickel I make over 250.
And given 60% to the company.
Let's be clear about that it's not it's not if for example if you go from 250 to 270000 dollars is not that 270000.
Dollars that you're getting.
A more higher taxes on -- that 20000 dollars that but if you're 50008 I think that's really.
Wouldn't it had been a good job explaining that myself included and so I -- discussion as we get back on the right it's a marginal bracket which an exit scaled the end okay did you gonna get that 39 half for quite a bit of that and come right and then your state and local.
And then you've got to 13%.
But it does not want out and -- -- the podium there with the president obviously decided to launch is happening live now on the Fox Business Network you know you're there.
Saying about small businesses and -- the announcement that we've been talking about -- by the way Kathy thanks so much for coming -- you're great as always.
When we come back and do it again.
Can do it against him right and Kathy Boyle and the way people handle that but I think -- thing that's right people asking questions I'm sure you can if you want to show.
Our thanks again Kathy appreciate that very much -- so the president Treasury Secretary speaking the Dow's up.
By a hundred points right now 7324.
The talk is about small business today by the lot of those.
Bright a lot of people are angry about the say -- bonuses as and I think you from the point earlier this question of -- and we do about a half -- contract law.
And what have you but because you know what that people are angry because they look at this and they just say this is -- it's just -- -- I -- People -- getting completely great taking billions of dollars in aid and giving out.
The millions of dollars in bonuses and the problem is at the -- -- this is why the Fed chips so worked up about this it's not just decide this righteous anger that I could be part of that but -- the real reason.
It seems to me that he's is angry about this is he says he knows he's gonna have to go back -- in the administration to the American people say.
We need to bail out such and such XY and -- And he knows that these types of stories hurt his case to try it more difficult -- -- time of political will on the last on sixty minutes anyway.
Chuck Jaffe is with us from MarketWatch now this should be great segment -- -- by the way our own good friends -- -- later in the show.
To talk about his blog the Robert and a good joke earlier and Brian block and finish -- this year.
You talk about eight demands the banks have or we should have consumers for banks that are getting bailed out by the way chuck good to see you thanks for coming on.
The web with us -- really appreciate it.
So well thanks for having me you know the issue here is that you know people want -- -- reserves and AIG and everybody else you -- -- put these limits on how much money they can make that you have eight other ideas sort of wrote for them.
Don't let our viewers weigh in May be asked if -- questions were over the case may be number one on your -- was protect consumers against unexpected interest rate.
Charges so what's that people hike it up your rates.
Well got act as walls of this right now you may have a credit card and you say okay well.
I'd sign up for this card because it's got 7% rate or 9% rate etc.
And it does but there's in the fine print is basically buried the fact that they can change your rate.
At any time for any reason.
Okay right okay let's say is that by a term that's good for you -- is a good for the lenders it's obviously good for the lenders now but truth is.
That come July of 2010.
That rule actually goes away that will be much more constricted by what about what they can do how much they can raise things when they can raise them what the terms and conditions are going to be.
-- there are rules that the Fed is put in place but those rules don't going to -- in place until one attack.
Very simply if you're taking bailout money you should have to right now conform to that -- I mean come -- at some point.
You have to actually act like a reasonable corporate citizen.
What is it reasonable corporate citizen -- Well.
It's separate from everything that does the bailout money it for me in this case and it's about banks in particular because.
Get a back to saying we're in trouble we need help while consumers are saying we're in trouble we need help but Anthony.
Again I didn't look at at the -- things and say hey you have to.
Do away with the late fees are you have to make it that all ATM fees go away.
Believe that they can have a reasonable model one people are gonna pay for convenience or people -- are going to do other things but I think that they have to be reasonable.
In the way they treat consumers -- starter with number one but if you went down towards the bottom of that list.
You know I don't believe you operating making you should be charging people fees when you don't give them any money.
I can't -- technicalities.
That silly right but let's take a step.
Further let's take a step further who were some of the people we're going to be checking their balance they're going to be some of the consumers that are going.
Did that check clear is that money there hey maybe I'm having something direct deposited.
They may not even be looking for the purpose -- I need to take -- -- be looking at is my long got a clear as whatever.
What you're talking about folks who you know if they checked and oh by the way their balance is -- negative fourteen dollars that would negative fifteen and he's right.
If you're heading out Teradata cuts when -- telling -- that he's not a ridiculous that.
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He's the idea -- just talked about a couple these already you -- the the ATM fees on the -- there are few more stop to cycle billing specifically what a balance is paid off yet.
-- the way charges to recognize and occasionally you call it -- people -- a little bit behind and hitting the pavement in on time.
No switching back and forth between vick's off -- between fixed and variable rates on -- credit card out of balance check out or overdraft charges should be reasonable.
And then you mentioned the eight -- is a few more here so.
The U -- I think to the credit card one right it's fixed and variable rate that's something that get -- worked up you don't wanna switch back and -- -- doesn't cut because.
What happens when they switch if you sign up for a fixed rate right what it behooves banks to offer fixed rates.
Basically is when we're in an environment where rates are dropping.
So if you get an offer today for a fixed rate presumably means the bank thinks that rates are going down to the -- -- to do that so what happens when the rates are going up.
They changed and and take your facts straight -- -- we're changing the terms on you know.
It's now going to be a variable rate.
They shouldn't be able to have it both ways.
If if they want to say hey times are good for fixed -- that give -- fixed rate cards.
-- live with the consequences.
It even more -- talked about the rate changes to me there's a difference when we start talking about fixed and variable because for a lot of people.
Thanks -- all I -- fixed rate card because that I can basically treat it like a law.
They give trying to do some debt reduction -- -- -- consolidation.
And take all my money sent over here that I was a video and I know that if I paid off at this rate it's going to be gone in a certain time of my great -- OK and then all of a sudden.
Check which I sat there for saying they think Mac brings up a good point he did they have they have to be -- responsibility and the part of the bar as well read the fine print.
You know -- -- -- saying that idea arm our money vs their money's kind of a mute point at this time and you know I I had a credit card bill I'd be changed -- I didn't I didn't realize the due date change but.
It was on my statement if everything was in -- of course that was kind of a get -- like a bait and switch right that.
It was on the paper statement -- is -- paper everything electronically so.
Eagle and I -- I hit the radar and you know I it was but it will live at my fault that it might be -- my fault it's -- I'm not.
I'm not suggesting that that you're taking away all responsibility from consumers when I say.
I'd like -- late charges have appeared late charges because for example.
If we are not yet if you're watching this right now and your bank happens you're your credit card -- happening today.
And when we're done here today you go off and get some lunch and you make your credit card payment due today at two all one.
Okay -- you make it on the line to -- one.
The fact it was made it 201 instead of 2 o'clock on most systems is -- mean you're gonna pay about 39 dollars in late fees to right.
That's a minute.
Yeah take -- a minute now you can -- all you -- been responsible and got it done I'm telling you that the bank is taking our money and it is our money.
For it and it needs help that at some point -- to say hey look we need to understand for consumers oh by the way if you're -- by 2448.
Hours whatever it is.
It's a five dollar late -- and when it crosses the 2448 hour threshold that -- the full service charge I got no problems.
-- if -- -- that it really let the other thing.
It's funny like his -- to.
Doug -- -- -- finish at not all about responsibility.
Remember one other thing we both and I don't want to -- a -- -- about one other thing with responsibility here.
When they change the terms on you.
You can look through into the terms changed I do not want to agree with this I don't want this to happen.
You could basically -- to cancel my card and keep the -- terms.
What what's happening -- this credit environment is that credit card issuers will -- We're gonna make the terms really -- on people who would rather not have its customers right.
So they they change the terms you know maybe can't go out and get that nice deal that you had before you can't go out borrow.
And you're they're basically trying to push you out they considered you a bad risk.
I'm sure that you should have to face that if you can't pay the bills and all those other things that's a different story.
But it we're talking about for a lot of people they're paying their bills they're just you know not -- fast enough for what have you that the bank feels it's making a lot of money.
Yeah I think the only the only argument that people are gonna make -- the same when they make when we use check the they example putting limits on how much banks can pay their employees is it people say well you know what at this point in time when we actually want to be able to have these institutions that we're giving bailout money.
-- and you know.
Come out of this that's the whole point of bailing them out -- ought to be to put it too many limits on how they do their business in another words.
Putting restrictions that might take longer to achieve desired effect which is essentially to bail them -- -- -- the money.
You're you're absolutely right and for about 200 years most of the banks in this country made their money by banking.
And over the last ten years they spent a lot more of their time worrying about how -- could make their money -- on fees.
Fees and banking they're not the same day.
If you're gonna make your money by being a banker -- a banker.
You -- -- like I write a -- find the people the land to.
Go out do your due diligence don't go -- and make loans that you shouldn't be making in the first place don't give money to people who have shown bad credit records the -- this -- The whole lot of that don't go out try to say hey you know.
We can take our -- if we put up 39 dollar late the on this -- -- -- -- we can string this out enough we're gonna make money in fees and banks that made billions and billions of dollars in fees.
And oh by the way when you've got consumers if it's a huge spiral.
And so part of my feeling is just that the banks it's not a big bear tremendous responsibility but -- their trouble enough.
That they're gonna wind up taking TARP money that they're gonna wind up taking relief money they need to be in the situation but -- that we want to help this problem -- for everybody.
And if you take people who are maybe that average family with 80101000.
And credit card debt which is the average now is about 95 -- I -- If you take that average family.
And you keep socket on fees and what have you you're finding ways to make it harder for that family to get out of -- which oh by the way isn't good for anybody -- -- now and now that -- -- seem to own the same the same byproduct they would just what I check at the president speaking right now he is through this wire cut across its relevant to our conversation because.
He says that he ordered Tim Geithner his President Obama to quote.
Pursue every legal avenue to keep taxpayer -- AIG.
From doling out millions of dollars in bonuses and he goes on to say it is isn't just a matter of dollars and cents it's about our fundamental values.
And that seems to kind of typed our conversation.
I today as well which you say listen if the taxpayers -- invest in these companies -- these companies are trying to kind of cut us in every corner -- counter intuitive and we're still kind of in this.
And is big -- together.
-- -- -- -- -- -- -- -- that business like these these guys have been operating their business this way in this model.
A case they've gotten themselves into trouble but at what music kind of do it seems that we -- cross that fine line between.
You know hey we're all this together and we need to kind of worked together on it and this is the value we need to share with one another.
And said you know just competition and if you don't like a certain reports credit card and you don't need -- credit.
If it's for starters.
Most of this is becoming business the first couple points I made in this column.
Are all going to be part of the rules that backs have to operate by by twenty -- they bargained price -- -- If you're an analyst you've already priced it into their projections of what might happen to the stock when the rules go and apply.
So since we consider this and that was Ben Bernanke said that these rules were fabulous for consumers since we think this is good but somebody explain to me why.
You can take our money now you can deal with this is business in 2010 but you can't deal with -- now.
It has not even a system change or something that we're saying how there's this big onerous cost that comes.
A lot of this is ordinary business and the secondary -- -- again I didn't make it that you can't go off and get paid I didn't say -- you shouldn't pursue collections.
You know punitive interest rates are bad for everybody.
So when you get a situation where they -- somebody and on a off on you know you can get a balance transfer its side twelve months for 4%.
And when the guy is the daylight the rate goes to 22%.
That's not helping anybody now and again if you -- -- say five days late.
I got no problem that the -- shouldn't be five days late but.
You know dead that that there there is late and there's really light and I don't want people he -- say let's create a standard that oh by the way.
That late -- If if the curriculum -- you say look for the first if you're late in the first 72 hours you know it's 58 box.
I've talked to people who believe it would be a wash and here's why you have when you get the 39 dollar lightning.
Almost every issue -- -- -- that for you like once every six months so in other words you get one hoops every six months behind.
If you got -- that you're gonna call they're gonna spend time on it.
With -- Phone people deal with you checking account then trying to sell -- new product in the whole works all right you don't -- -- with the eight dollar -- you wouldn't do it.
You'd say I made a mistake there's my eight box everything that I -- Now that's friends and if it says step what do people think it over a couple more questions for checked just hang out all right we wanna check the markets real quick just keep up people up to date on what's going on that we'll come back to you.
My favorite username gentle lover has weighed in with making the point that.
It chuck it would agree with chuck and if and only Ethier getting talked.
Bonds which is his whole point -- -- -- is worth pointing out here he's not saying to do this to everybody is that people take via.
The the highlight that I hate when I had a -- dollar charge on my credit card because of the due date changed the I got on the phone.
Anyway that they did but it with a headache and you know again it wasn't like I had missed the date it was they moved and you have a kind of -- people.
Let's think for that reason it's taken like I guess I could facilitate when an -- producer and I mean he just.
-- -- -- what the scene that really is.
The call penalties another -- -- -- at the New York Stock Exchange and on the markets are behind.
I know I'm.
That any friend and a lot of and that wind analog -- I actually sent a dollar cap and that doesn't value a -- and it's getting down and they are making it until I got an and that -- planning -- -- -- -- I didn't when he -- points here on Wall Street the financial leaning that way and I'd like they're also talking about the fact that the usual.
The lightning bolt in the market and really that's what we're seeing.
And you know last week obviously we heard from the CEO the Bank of America JPMorgan and sitting and talking positively sounding optimistic not profitable in January February looking good for 2009.
That rhetoric obviously brought optimism and the green our -- -- on Wall -- last week and now this week.
Obviously we've heard from Ben Bernanke talking positively and that has given and -- in the market.
Couple that was what we heard from Compaq and there aren't really talking about the fact Barclays and HSBC both coming out and apple and when our financial that -- -- the -- Talking confidently -- and seeing closing higher as well.
So put that together and we've taken off -- -- Pretty good this as far as immediate action but.
In light of the fact that they're going to be doing something but the traders seemed to be added noting that it's not anything right away now.
And OPEC not cutting that we're seeing here and that's what we're watching it like optimistic rhetoric that's -- the tone has changed from Washington.
Any person who's been watching Washington since the beginning Jack since January -- seen the tone changing.
And has -- some optimism but really you know.
Really about dead cat bounce and -- last week.
It was a funny line net profit -- and instead of the cat dead -- alive.
That was that was a moment and -- noting that you just weren't just holding on to the game that we didn't quickly sell off here.
They don't like that because Bennett Bill Clinton -- -- the -- was saying hey it's not just that can't happen.
So we'll see if you know not not to say that this was the bottom -- You know getting in buying like crazy I mean you can't -- -- this kind of an either but at least it's and it and it shows some optimism in the psychology in the market.
Obviously as well now is such an important factor here.
That he had in mind that element that you see here the observations from the floor and nickel we're gonna try to look at that we'll screen that Yemen Yemen to -- again at all.
Yeah the heat shield and -- out my -- you know rapid fitness -- I see that Jim and Jennifer how long time I remember last yeah did.
Matt -- at best male candidates.
Paul -- -- but chuck -- with -- for MarketWatch -- got a moment that thanks for all the time shot put just you know.
Request a final thoughts and I was gonna say.
I didn't get fact that instead Jenna -- -- I really don't have a question a broader question check because your article said that it would get a lot of I reactions to it but as we do all these bailouts and all these different forms.
Who do you think in Washington is really looking out for the consumer.
No one thanks chuck for -- I mean that's a plot that.
The bottom the bottom line and this is it should be the Federal Trade Commission add.
The problem is that as a general rule the FTC.
When it comes to actually enforcing things has virtually no power.
Right so so as a result I don't really believe there are too many people who are looking out for the consumer that the idea.
Is as several people of apparently noted that.
You know if you allow them to do business and business is going well that that sort of takes care of the consumer.
Organically and I don't entirely disagree with that but when you're watching.
Dubbed bailouts and everything else that are going on.
I believe they're saying we need to go off.
And make this happen to say business and all by the way the consumers an afterthought if -- thought about writing about him that's it entirely white.
I felt that if you're taken bailout money we.
I am not a corporate executive but here's what I'm reasonably certain about my skills if you gave me a hundred billion dollars to manage.
I would realize.
That fifty billion was missing before actually 75 billion was gone.
You know battle and that's kind of I don't think they should have known something somewhere along the lines that's an -- -- and so many different things should yeah.
So in this case I just.
If somebody needs to look out for the consumer they're not doing it and -- -- get it doesn't need to be overly.
Heavy handed -- right -- we're gonna go often.
And outrageously protect the consumer but it's the other side -- it it's it's the basics of Washington say.
We know that we're doing one thing to help big business and oh by the way in everything we do.
If it if the consumers paying for that's what can we do to make life easier for that consumer without necessarily disrupting business that's.
One of the things I really believe if you go look at my suggestions not a single one of them would disrupt business and the banking business it wouldn't really stop on.
From collecting most of the fees and the income they get.
Good enough chuck thanks again for all the time we appreciate it looks like a lot of people did have some thoughts on on the -- we consider marketwatch.com thanks again Chuck -- for joining us.
Today now -- -- -- -- up and above Eddie what's the link pay to performance or well -- members of congress existing idea.
Worried -- the congress is our elected officials -- -- -- look out for Ashton I think the consumer.
You know maybe we should certain anymore because right out fifth biggest ever -- outraged no -- Lot of help.
That's for sure -- first -- rich -- because the AIG -- a big one today that's we've got all the started with the stuff talking about how much people are getting paid and what they deserve rich right what's the latest on this.
What are we call this morning bonus boondoggle.
I think -- what has turned -- boondoggle Hart what's the latest on AIG rich.
Openly about about the AIG bonuses as we kind of all -- coming down the -- but actually to see that they -- Specifically paid out yesterday 165 million dollars worth of -- they're still hundreds of millions more to pay.
And these bonuses that AIG is contractually obligated to go ahead and and do.
There's a lot of value would imagine outrage and as a real populist sentiment here in Washington DC it goes really all the way up from the president.
All the way down to congress you're going to get more AIG hearings -- one coming up on Wednesday.
Legally though the administration and AIG's lawyers have looked at the situation when it comes to these financial retention bonus the bonus bonanza.
And that 450 million dollar they've been talking about to the financial products unit.
-- -- contractually obligated to pay those bonuses -- there they're in a real tough spot right now but again physically stopped too many folks on Capitol Hill from teeing off.
Yeah that's a good point for sure I mean eight we all thought come in again and then line however just put in a letter actually if -- From it and it -- a great.
-- yes haven't had a chance to read the whole thing yet have you rich this then -- -- -- lettered everybody.
I haven't seen Andrew Cuomo's letter I have jingle about mr.
-- -- sent to the Treasury Secretary -- what.
I'm sorry did it -- literally came out right now so unless you had -- telepathy then proceeded.
And it's right here yeah I hearing being at but -- I can -- baby gotta do it says yeah it's about 4 PM today once a list of certain rationales behind this -- -- -- subpoena people.
That's almost anticipate if -- got a lesson here is right almost like Ghana had slightly advanced copy that's interesting to redirect -- that.
Well you know when you listen to the ration out the -- Ellis is really two fold your first -- a legal rationale which the administration today -- you've kind of gone over but the second part would -- really saying here and this is from a a source pretty close the company was pretty much -- Fox Business -- These are the folks in the financial products division they pretty much got us into this mess and they're the ones who were going to know how to -- the situation.
And how to get us out of the mess they say this it is an -- began to falter other companies came out trying to poach their best talents and they felt they had to pay these bonuses but again.
You're talking about 450.
Billion dollars worth the million dollars -- the bonuses to 400 folks.
Who work of that financial products division that's the division -- was over leverage and ensured all those mortgage backed securities ended up being an awful awful bad.
And then 600 million bonuses on top of that -- a company wide.
She -- about more than a billion dollars of bonuses recently being in the process to be paid out right now it's a lot of money for a company 80% on by the taxpayer.
-- greater extent.
Rich has been on a solemn day so resolutely continue to follow you and everyone -- -- got to put it up there about his which is report yesterday.
On Twitter because that -- has been -- you know on -- thank you very much thank.
Yeah that's we know Bryant's hear Brian could see up by the way to -- the -- -- not -- -- that was actually helpful.
Because -- -- you know strawberry got -- about nine things at once again just before I came on to check out.
The letter so that is interest and the human well that it will see what happens that they -- your blog is why you're here to talk about it.
We said you need your money depict -- who's gonna -- the NCAA as it is posted.
Yes I actually thought I knew you could do that so I think I brought my bracket sources we -- -- we're gonna -- the follower feline final.
Memphis Tigers -- Pittsburgh Panthers Memphis.
NCAA national champion that's a good logic like that that'll work meant to say I've been wrong I was dead last month last -- particulate.
Got randomly picked it off some earlier that -- What was my final four Wake Forest -- buy that was might.
Does my day in La bodega madame -- effort degas did -- -- a -- -- -- wait fourteen game and then you can UConn.
Pitt and UNC LSU UConn did -- odds are duke and UNC isn't UConn duke Robert great Anaconda do you have any.
Well internally at UC Santa Barbara and athletes.
-- San Francisco State in a thrilling final humor really around.
Great big -- -- as has the size of the windpipe that.
Sorry -- it -- -- I'm trying I'm getting past these brackets issue for issue -- New Hampshire we Hampshire I was waiting as well at their picks now.
-- if you had a very interesting idea.
At that at that if per day if we're gonna happen for example on sample mr.
-- IG and going after them their bonus structure and their payments.
-- -- for some other group of people congress perhaps how to thinking that.
It's never gonna I have had people write again.
They say well this is why it won't work and I appreciate people -- at a -- right now and and then it purely -- satire yeah it doesn't ever happen I mean I was an inevitable move this weekend you know it's Saturday on my computer like door.
And thousand of the mood I thought okay Barney Frank.
Andrew Cuomo want to start telling Wall Street how they can pay their employees based on long term performance right.
Sort of using the outrage -- the Yankees you guys just did.
Why not do this congress right congress right now makes -- make senators and congressmen and women make -- 669000.
Party leaders and speaker get a little more because that's that.
So why not do this we take the average GDP growth over the last 45 years which would be just over 2% right we're about 4% some -- Camels bringing their base -- down 200000.
And get a pay cut but don't work congressman -- -- to take money into your pockets.
For every 1%.
Over GDP and -- round up because we're generous.
We'll give you an extra fifty honor Rambo so I -- we could be decided it.
It is congress gets paid.
Based on how the overall US economy does if we get GDP growth of 4% to get their base -- -- hundred -- that's like 5000 for each 1% of Bob that's of the may.
Books -- America votes if now below that.
No bonus why not tight congressional -- performance it's funny because I think about I actually reminds me of a little bit this this big push now for merit pay -- for teachers.
So you think about they're trying to -- the metrics to do it somebody's congressional leaders that are pushing hard for that they would say with their own pay.
Part let's try this performance as well but the problem it is tough to measure performance does not GDP -- of blood but you're trying to link each congressional members -- beautiful together.
That there that they are -- collectively contributed to the GDP it.
-- economic policies that what it but what you're going to get us policy for martial Art -- the consumer does.
I don't but if you're the minority party for example you may have voted against every single thing you know you may.
Republican now and all the everything that passes is is put -- I don't presently.
Advantage -- you know I didn't have my granted he's that they would find a way to change the way GDP is calculus.
But they learned through the rules are faring very I think -- -- -- -- well -- -- think -- so eager to tell us -- -- you know Wall Street you know the private -- how they're -- -- be -- I don't we tell them.
-- where their boss how they're going to be about someone else laziness is listen we do tell them how they're going to be paid because we vote for them.
Well we tell me because they're gonna update that I agree either you're gonna get picked binary right either get voted in get -- -- you don't.
But let's be realistic I mean you know it again because it is buying -- reading comments -- to win seventy some percent of elections.
Very few people have the power and the money to even put their names on a baton.
So part of my thing is if we -- -- -- I think I wrote we have two years of contraction in GDP you're automatically.
From running for reelection no -- because it -- -- -- at your job.
It would actually introduced.
You don't actually.
Money for the first time as a motivation run for congress to -- -- Get rich WW what -- the -- in congress are.
I'm glad they don't care and then some 160 gravity field does not mean that's our most of rich and tenacity they have a hard job -- I believe that you.
I hate me for this.
-- it probably -- much money based on the type and extent doing what they're doing right so give them an incentive everybody wants to take back all these Wall Street payments right.
What people don't realize what Wall Street as most of payments we call bonus.
-- -- secretaries and you know they're they're not that's -- people get paid.
I think commission is a better term.
The Wall Street it even if it's -- -- does bring up a good point because again going back in discussions beginning in the show we have all these conversations and now having DW conversations all the time about -- is.
And more companies getting more taxpayer money at everyone's angry about and -- -- an angry group of Americans now about all these things but it doesn't seem.
That there is one group of people that really -- that she is making things change.
Well and it's interesting too because you've got New York attorney general Andrew Cuomo who's now put himself for the Munich share.
We had that look back and and -- he's really continuing that Eliot Spitzer starts right which is using things like the Martin act this obscure 1926 law.
To go laughter white collar crime because.
White collar crime is -- the -- right you can find banks find corporations and you could take money from them.
Really just transfer of wealth right you take money from a corporation and put it back into the State's -- senate to do that enough to get on TV of the actually become governor when.
I know is and I'm looking at the URPG's website over the weekend and you know it's a lot about you know sort of white collar crime and health -- task force.
What about going inside the ball right you know what games.
Drug lords Middle -- problems in Mexico.
You know you don't ever since Spitzer came in what we hear about is sort of white collar crime.
Going after the deep pockets.
We haven't had you know sort of you know -- perp walk.
Both high level games right under -- -- -- -- about you know is a good time to be a high level gangster I don't know.
But we don't we don't hear about these big time arrests -- what they're arresting him and publicizing it.
But it just seems like all the sudden do you think you disagree with the prior to that is that what you're saying.
It is for me yes I'll say that OK and I'm not saying that these firms if you're doing wrong and they're breaking laws -- -- -- -- thing.
Right PG is the chief law -- Chief prosecutor.
If they're breaking laws yet we should go after.
But you know Rudy Giuliani.
-- -- thing was going after the mob -- after criminals from making New York City safer.
As mayor both -- -- right.
It seems like Spitzer since Spitzer federal prosecutor and federal US -- -- -- US attorney thanks -- Going after criminals.
-- not saying that there may be hasn't been crimes.
On Wall Street I don't know fairness I don't know on the Wall Street in the eight.
That leads Giuliani did did the -- thing right I mean wasn't it anyway after all right Giuliani so after the -- I don't bouncing everywhere throughout the eighties -- Wall Street guys let's take on a broader point not a priority is all the sudden now it seems like Fiji is what is according to the -- -- -- -- working with.
The New York attorney -- working with Barney Frank.
Who's the house financial services committee chairman.
And some sort of got this double push on Wall Street I'm not saying that we don't deserve some investigation I'm simply saying.
That it seems like may be some of the priorities.
-- -- a little bit out of Lackey and we look what's happening in Mexico we look at the border all the -- -- happen.
We do -- about that I don't know don't hear it if it rhetoric you know we have.
-- in sync Wall Street is new I mean they aren't villains Heidi well maybe they are the new lot but that's great question having -- -- -- new look.
Right that's a great question I don't know I mean how I wonder how that would go down a big drug master -- -- walkers have been like that it.
And then the attorney general would be accused -- taking is I have to ball.
Well listen what we do what we -- it was easy -- -- very few people go to jail so whats the outcome.
Right Spitzer did this you go up to these -- Wall Street research.
There -- Spitzer had a goal of trying to democratize Wall Street research by going after the investment banks who use analysts to PH road shows and sell IPOs right okay.
The only thing that came -- that two things came of that -- Wall Street researchers basically gone he didn't democratize it he limiting.
They're very few independent research firms left analysts are getting laid off several.
And he got a few hundred million or billion.
From these firms she basically yeah I did the first may be charged too much in fees I guess what you do -- taking money from one person and getting it back to the state.
Sort of got the circular flow of money money's like energy yeah it's never really created.
Just sort of moved around.
I'm just I'm just saying you know that there there seems to have been -- -- -- the last decade some high level criminal prosecution for violent crime.
And maybe too much of a push leave it to congress leave it to the FC CI.
We're gonna you'll say yes he did talk about this all week if we had to you know that was -- Bryant did it but -- -- -- of -- Wall Street firms that aren't big they're easy to make villains because a lot of money still.
They do and is just and and what.
You know and to totally exonerate them from what happened in the last few years is not fair either you would agree with that or right or wrong.
Me to totally say -- Wall Street Europe the hook up with its -- but whose Wall Street I know I don't I don't see this coming -- -- that fact in all these people financial services -- evil now.
Right people that -- -- It's that.
I don't know that -- today -- -- -- against her show actually was telling me that he's getting out of his car about a month ago.
Some guy -- street said you're going down Wall Street boys like that.
This had nothing you can -- cell phone company.
You're -- -- that he got to have a little is a pretty successful guy.
And you know he got -- might some random guy in the street right here midtown Manhattan that's I mean if that's the first thing you look -- first thing you learn in law school.
It is -- -- people and a it almost seems like what were too focused on the money and not enough on it and I think that's preventing the behavior right here.
-- thankful for anti -- and ethical questioning that's true you found people that that have the -- and I think if you have money Peter barn just.
Thanks -- I appreciate it from what you -- -- blog or website we'll think of it when I'm watching it.
The Charlotte Chicago I -- -- -- the nasty comments -- -- believe you guys you can -- should have -- and well it's actually you did get people worked up which is fine that's the whole point of the show.
People a lot of comments here and schizophrenic -- Brian and I think they'll have -- how to prevent a little flavor and resolution.
What's Barnes -- About I'm sure -- -- -- -- Geithner and and the president right with a small business thing over at the White House which it is an Auburn helping and we are watching a little bit of an earlier so they made their puzzle.
And it's it never gives -- -- -- actually I wanna start off with AIG because the president here calling AIG out on this 165.
Million dollars of bonus payments yesterday saying quote this is a corporation that finds itself -- financial distress.
Due to recklessness and greed.
Under these circumstances hard to understand how derivative traders at AIG warranted any bonuses.
Much less than a 165 million an extra -- how they justify this outrage to the taxpayers who are keeping the company afloat.
And -- added that he's having Treasury Secretary Geithner try to use quote leverage it to use the leverage.
From the it.
Government's investment in AIG to pursue every legal avenue to block these bonuses and make the American.
Taxpayers -- here -- -- the president is in the bully pulpit just now to -- try to -- -- get AIG to.
Get these traders and London to maybe renegotiate these deals I don't know it's going to be you know like we said we've talked about these are contracts.
Enough if you got a contract.
That don't need to get back three million bucks.
I don't know that might be a little hard yet on this on the small business assistance the cornerstone of the small business program announced by the president and the Treasury Secretary is.
He is up to fifteen billion dollars in TARP funding.
To buy loans backed up by these Small Business Administration.
These are securitized loans the market for -- small business loans.
Has locked up nearly half of -- business small business loans are funded through securitization through banks.
Taking small business -- packaging them up and selling them to investors are the pension funds are the sort of private equity funds and that kind of thing.
-- that market's been shut down for the administration hoped that this fifteen up to fifteen billion.
Well help get lending going again particularly at community banks around the country.
Yes it's a state if you brought it to come back -- for second.
You brought up that the idea that the presence is in the bullet -- because that might be the only -- he has right not to not to make -- -- -- because that's a fairly powerful -- -- for president to -- -- Sometimes if you talk enough about it you the president changes -- be right.
There actually right and that is one of the principal tools.
That that a president -- -- the bully pulpit and the president obviously.
-- taking time out of a specific discussion of the specific announcement about the small businesses -- small businesses and small business lending.
Going out of his way to take a shot at AIG -- Well see the the president saying that the Treasury Secretary continues to talk two way AIG CEO Edward Liddy.
About these about these bonuses and these contracts but you know from everything we read.
Yesterday from the letters between -- from nobody to what -- secretary Geithner.
These contracts look pretty pretty solid 22 -- I don't know what they can do they get back and renegotiate and that's that would be the easiest Peter.
-- disk drive admitted here watching the -- and we're asking our viewers what you AIG IA IG do it it's bonus money either give it back to taxpayer -- the people responsible.
Under its contract says -- three options what do you think based on your reporting that could actually be done.
Well the one thing that could be done is that the company has said that you know it.
Basically saying -- it can't.
Renegotiate these contracts are cut these payments down and it does hope to cut them down by.
30% for 2009 but it's saying it may do that.
The threw well attrition through people leaving through the sales of some of these London operations.
Right not necessarily saying it's gonna cut them.
By just going -- and changing contracts.
But they that the company saying.
Suggesting that it will pay back.
This bonus money to the government one way or another -- -- -- All right -- -- CL -- plays out thanks Peter as always we appreciate it Peter Barnes at the White House hey guys and thanks everybody.
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