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He's here he's really not well.
I for the last 48 hours have said that you -- drunk in the background and it lots of noise I -- Zain -- major hangover from Saturday we were all.
Speculating on where you Wear -- -- and how much fun you're having.
He's got -- series here -- -- I know I actually I I -- wind of your little you're -- you did.
Yes and that that's it's gonna it's gonna rear its ugly head on Israel on how did you shortest I'm -- it is hard -- -- -- when you said I'm not well.
Did you mean sort of like to a mental standpoint I mean he really sick and now -- -- any -- that I did okay good.
Bad enough to bring -- like -- later.
Think fairly and a nurse feedback to help if you -- and and I were flat withheld until flat the marketed speak no I'm not even flat.
I'm here I'm full of energy and the market is not you know reciprocating right now.
And -- did you -- Apple blew it out of the park Yahoo! -- the wasn't great but it wasn't awful ads ad revenues sales are down right.
When didn't regional banks have stability I mean -- really killed and.
Stanley great quarter -- tell you McDonald's had a great quarter two.
Nothing nothing all like I said earlier and I I firmly believe this now as we get about halfway through earnings season.
Beating expectations is now the expectation you know -- and now all the sudden you've got again -- -- you know what.
What we've been talking a lot over the last month is actually true.
Expectations are way too low and comparisons as we know are very bad gone back to 2009.
So it's going to be easy.
When these companies to show you over year big gains in in income.
Year over year gains in revenue which were received for the most part.
And then beating expectations pretty much across the board.
That's why they did this sort of there's -- new paradigm there's a new thought that you really gonna have to blow it out of the water like a Morgan Stanley did this morning in order to have movement in the.
Stop but I think that's not any -- right they didn't below it at Atlanta.
They missed expectations writes -- -- and then I'm pretty -- I mean yes and sales and revenue was down but -- -- across the board everybody.
So I think he kicked out of the green saw.
I thought it was -- they were decent numbers market apparently could care less NASDAQ is even down and the NASDAQ was supposed to be what was will -- -- -- -- -- -- -- -- -- -- President Chapin hill advisors.
In that notorious.
Bear and why it has such as she has -- -- -- -- is this market confounding you were talking before we went on the edited to posting doesn't seem equal flow at this market -- Now it's a very frustrating market for those of us have been cautious you know early on Wall Street is another word for wrong.
And you're sticking with your strategy do you think at some point in time -- we have that correction.
That we've been waiting for you if you if you're missing.
On the outside.
Yeah I mean how much higher could this market go on the S&P could go to 127013.
Twenty and that means they're gonna push it up one more time.
Could there be a 10% correction in -- absolutely.
You know we started off and earnings last week great.
The last two earnings season on the nineteenth the corrections article October and January 10 through very steep correction you know three days -- -- -- -- -- -- you know boom.
So that's what can have a look what happened on Friday with the Goldman is it opens up.
And boom thanks sacked -- 348%.
You didn't have a chance to get short you don't have a chance protect yourself.
-- late firing got in because drought in the market check out -- shots gotta buy stocks.
And getting and it's been very -- to find a safe area that gives some outside builds in gives you some downside protection but you know.
The one thing Chris and I've been saying all times is -- kids non reactive -- good news bad news we're not doing anything and one would argue that that's actually good time.
That is a sign that we're recovering was it's not this erratic movement -- you know we certainly not gonna see those 700 point jumps anymore.
That may -- slow and -- actually is a good thing he.
Well but it's been in one direction -- that's the problem we've gotten you know how many days without a 1% correction until Friday it was 43 out of my dear -- something ridiculous and just -- go straight up.
You know so corrections are healthy and pullbacks are healthy.
Right now it's trading -- reason Morgan Stanley blew down -- blew it out and banks taking more in it blew it out and -- -- train yes they have cheap cheap cheap money.
Government goes -- go for a boys you know push it up and that's what they're doing 7% of volumes high frequency trading.
Some reels are doing pretty well those signs Bancshares in a couple of others hundreds and Huntington Bancshares -- lower.
-- so what does that tell us about the lending environment well.
Smaller banks to get a little closer their clientele they don't have a -- of -- jumped in their mortgage you know in their portfolio.
They didn't they don't have prop -- that don't have things he gave them exposure so they can do mom and pop business but when I'm worried about this you know the number of banks Rory -- this year.
Is tracking a much higher percentage than last year in the FDIC's -- broke.
So I still think all the problems are not gone and if it is the small bank has exposure to major real estate have to be cautious -- of the golden news didn't bring this market down.
What's gonna what's gonna make it correct.
It's impossible tell who I two weeks ago I could've sold -- SC she was gonna investigate you know -- -- we think it's really some out of the way.
The way something it could be Greece -- -- -- Greece Portugal and look at the debt level they -- hundred billion dollars up to.
An 8% level who would have thought Iceland have a volcano that shut -- all the flights and right you know -- aesthetics -- -- goes UPS business we need to FedEx something along and we couldn't do it.
They sent by email.
You know so in all of a sudden boom -- -- -- on what is do the airlines nobody's paying attention that last week.
Iceland was not news and for awhile and only going to shut down the -- sucks to look up why merger news.
Right so it's irrational in my opinion you know and how much -- they push it up you go back to the depression you look at periods like this -- GDP.
Percentage debt is huge the number food stamps going up -- -- number of people on unemployment and under employed I know multiple people that are at work for multiple years.
And -- consulting so what's -- revenue relative to what they were earning a you know household debt still very high.
Part of the reason consumer.
Credit protection and -- better is because people -- their mortgages right so we still have a huge foreclosure shoe to fall.
So -- a lot of things to worry about but not if you listen cheerleaders you know most -- is just push push push.
Things are better things are better every time we think we're wrong we look at our client base somebody came in last night and I have a Tenet.
They've always gotten X amount of dollars they bring it lowered it by 15% still no takers in we have multiple people like that with no tenants in their buildings.
-- you think that this disconnect and then we talk about -- -- Wall Street and main street.
Really shouldn't be there I was I look at my portfolio and I say okay I've got to bank they're doing very well I've got.
-- C -- doing very well I've got consumer staple and Johnson & Johnson doing well what a lot of worry about the food stamps and the housing and everything I got these companies that are poised to do very well even in a downturn.
Sure go back and look at what they did in 2008 look at what they did in 2002.
Nothing worked in 2002 -- a choice of -- thirteen on international.
They get 32 on small caps and that was after two years of a correction.
Look at 2018 valued in protecting nothing protect him cash and being short -- being the work.
Bonds and protect his that a credit crisis still is your theory then the reason for the disconnect because these big banks got such cheap money and they just traded that I mean why not right you -- on the government for freeing them make coupled percentages on the -- absolutely so that's the reason really for that I do big market disconnect absolutely I think it's just pushing pushing pushing.
Look at valuation levels you know look at what's really happened will we see with a very -- practice we have.
You know people aren't originally a very wealthy people everybody's worried whether the kids coming home to -- and kids not getting any job so we're gonna by the apartment for them are gonna help them.
Two people worried about their budgets people having twins thing can't afford the nanny.
It is so -- we've got all kinds of issues you need two incomes working many people don't have two people working and they need it but all the real others.
Responsibilities for women tons of the real their numbers are in the housing in the jobs numbers over the last several years a lot of the growth.
In the go go days was actually real voters being added on that might pay for the private to school tuition might have played for the asking home gone that -- -- gone.
I've got about thirty seconds here if people want to stay in the market.
But they do they are concerned what what would you tell him to do what -- what -- you put your money that the safest but you still want to play.
Well the drugs have not moved we do pay dividends the problem with some of the things like utilities.
Is they generally haven't participated but they do to sit on the down -- so I would -- -- but -- San if you go -- Unemotional predetermined.
Don't chase returns don't chase it getting in with a predetermined stop loss and -- the discipline.
Kathy thanks for coming in and bring -- all backed reality yeah.
-- -- there -- guys check this have you on the margins to bring us all back down because it's hard sometimes as in -- his movement I know Kathy Boyle president to even know advisors and turbulence there's going to be here.
I wouldn't take a break the market is down a whopping three points I know I'm reactive like us excellent.
But -- boxes dot com live Tracy Byrnes Chris cutters back in half member waiting days to ask this question.
I'll tell you we'll call my you know I've been out the last couple of days.
And it's so I -- make up for lost time someone tell you what caught my eye on Monday in Tuesday.
Let's slow it Monday music -- Monday.
-- didn't Shapiro and for the ailing unfortunately Chris potter.
Under the weather does that mean drank too much saying I couldn't get add that Monday morning telling just not certain.
I'm not I'm not crazy parents Adam Shapiro in her again Chris potter but the -- -- exactly what's wrong with them.
I'm going with a rough Saturday night.
That's good stuff -- I don't see how all I -- -- aliens Valhalla was what Saturday night.
Really really well and it's because your resistance -- in -- to begin with Sunday you wake up with the -- It looks continued this that is the heartland money here's a comment Tuesday.
-- -- little hotter still sick still sick.
And heard my area -- moderates.
And -- at night.
-- -- -- -- -- -- -- Get all it takes is a really long time and yeah Troy and I had the same name.
At -- table.
Back to foxbusiness.com live Robert Gray and for an ailing Chris -- along with Tracy Byrnes.
Ailing we used the word lightly well -- Rosen Gail and her entail giving up -- can't get you know it.
I didn't realize it was that bad -- -- that's roles work yesterday.
Browser being consistent with -- yeah I mean guys and I wasn't -- the table I was under the bus you threw me under that you hear all this out affects it wasn't just me though they were based on the audio guy so yeah.
Everybody is all right thanks guys I really appreciate it and I'm really owe me big time.
That that's -- mile over the last couple days.
Hopefully today we'll bring something a little bit more positive insincere I mean come on look at me -- them on the mess in Iraq and find known as well and -- love.
This year I was just Robert -- -- -- is former SEC attorney maybe you can represent me in the case.
Racing Concord defamation over the last couple days -- -- on the Robert good to see we wanna talk a little bit about.
What's going on with Ed -- Goldman Sachs in the SEC I think there's a lot of confusion I guess if you go to marketwatch.com.
Really like the first fifteen headlines are all about this story and it's all the different angle seems like -- a million different angles of the story what's really what what's really going out.
Yeah it really does there seems to be a lot of different takes by experts in the area also.
At the heart of the case is really the SEC's claim against Goldman Sachs that they just failed to disclose to the buyers of these CDOs that John Paulson had a hand in selecting the portfolio.
Paulson was -- short seller at the time so.
The theory is that Goldman Sachs designed a product that was essentially designed to fail that was gonna go down and they never disclose that to the bank.
And Goldman's response was -- of course the bank is a sophisticated investor and they knew there was a short position on the other side.
And they have the opportunity to do their own analysis on these securities so it is a close question I think the SEC is gonna have some some questions to answer when they go to court on this.
Right because -- it didn't go down.
All the long investors were doing the happy dance so what's your theory then on the holes in this case could say we're hearing the SEC's case is weak.
Yeah I would agree with that I mean I'm I think there's not a case there but certainly we've just seen the complaint the SEC hasn't had to come out yet with all the evidence in support of its -- Newton but at the Goldman Sachs conference call yesterday they made the point that not only was John Paulson involved in selecting the portfolio.
But I -- -- chairman bank that was the buyer also had some input here.
And it's almost like a -- where both parties are betting one is going -- -- in the market's gonna go while the other saying it's gonna go down and they come to an agreement on what the securities are in this portfolio.
There's a legal concept -- reality that the SEC has to me to show that these facts are really important to the buyers and that's where they might get tripped up Bob is a very tough to show -- reality when Coleman actually lost money on the deal need to pay fifteen million dollars.
By Paulson to set up these securities themselves but they -- they lose money on the long side.
As opposed the short side.
And Goldman did say -- lost about a hundred million dollars on this trade and they've really been making a lot of that in their press releases and also their conference calls but.
I'm not really convinced that that's really gonna win the date for Goldman Sachs under the securities laws is really no exemption.
For fraud if the broker lost money on the trade.
The SEC and I think ultimately the court is really just gonna focus on the facts no word these material omissions and -- the importance of the investor.
Whether Goldman made -- lost money is really not -- that come down too much at the end of the day.
You know we saw the market sell off on.
Friday I guess was when the vote came out and everyone realized that the vote was not unanimous three to.
And -- we pulled back a little bit.
And Coleman's got this -- -- a reason the government hires from Goldman and not the other way around they got major legal team what's gonna happen they pay a fine and we're done.
Well that's going to be the question Goldman Sachs has said the SEC hasn't even opened up a dialogue yet in terms of what the SEC might be looking at in terms of a fine.
So it's hard for Goldman to speculate what might be expected.
But -- that three to two vote was really pretty shocking prom in enforcement contacts the commission always refers to be unanimous and especially -- a major case like Goldman and here we had a clear party line vote with the two Republicans dissenting and that's just gonna add fuel to the fire about whether this is a really a politically motivated case and what impact this is gonna have ultimately on financial reform.
Goldman Sachs first others may be to follow I mean is this a message from the SEC is this is the sign that.
All we're taking a little bit of a different -- a year from now on it from here on out.
I think there's no question -- the SEC is definitely putting on a new public face they have a new enforcement director Robert Khatami who came in under chairwoman Shapiro.
And the SEC is really making a lot of efforts to say there's a new sheriff on the block here this is a shot across the bowel Wall Street they picked Goldman Sachs to be.
The first case on -- sub prime mom enforcement cases so.
I think the SEC is really trying to recover from all the criticism they received and made off -- on other cases that they missed and now with a new team in place are saying we're taking a new tougher.
More aggressive approach to fraud right -- brand equity back right.
You know we've been talking about his financial reform and the timing of this whole thing comes out in the heels of at all.
What's gonna happen now is financial reform a sure thing.
-- it's hard to say it's a sure thing I think ultimately it at the end of the data will be financial reform act of question really is how far will those reforms go.
Will derivatives trading -- severely restricted or even -- banks or will there be more trading a lab with more disclosure -- certainly the SEC's fraud case helps the Democrat side of the debate because they're pushing for increased transparency more restrictions and -- CC's case really shone a light into a dark corner of Wall Street previously these CDOs were really not very well understood not very regulated.
And I think it only helps the Democrats in terms of pushing for greater financial reform.
-- were you struck by Goldman's response -- -- they really -- they obviously feel like they've got a pretty good case here in the fact that they kind of came out swinging today.
They absolutely did and Goldman is really departed from the traditional way a major company would handle an SEC case like this normally the -- -- fire the employee.
Try to work out a settlement with the SEC and Goldman has taken a very aggressive tactic called the SEC's case unfounded both in law in fact there.
They came out swinging and it looks for every -- purpose that they're gonna litigate this in court which.
Is very unusual and it'll be -- -- see what happens.
We surprise the FCC didn't go to -- first and try and settle I mean I guess this.
SEC wanted a PR they wanted this to come out in the open but isn't it more of the new one to where they would give Goldman the opportunity to settle for making an announcement like that in a Friday.
Yeah there's no question this is a very substantial departure from the norm has an attorney I represent people in SEC investigations and almost without exceptionally SEC gives people the opportunity this -- before hand and now this is just a major I guess PR coup for the SEC by not giving Goldman that opportunity.
And it's it's very rare that they release the vote count as well as we don't usually -- with the SE.
Voting if it is under -- unusual to hear what the SEC's vote count as an enforcement actions.
Often times in his new policies or rules are coming out the vote count is released and those can be a bit more contentious but.
Enforcement proceedings are usually quite guarded the other investigations they're non public getting.
It's unusual for the public to learn about what the split like this and what that commissioners voted on -- anomaly.
At the firm -- and hi I'm Robert -- former SEC attorney thank you sir thank you could be good to see you again I think palm really been talking a lot about what's when all of this -- volcano.
Are -- in Iceland Allen has impacted.
Not only feel the airlines that certainly commerce.
In Europe need billions and billions of dollars one point seven billion dollars just the airlines will be tend to forget the human tall as -- what this is doing all those folks stranded one of them being.
Our very own law and -- she joins us right now on the phone.
-- -- are extraordinarily.
Travelers stuck in London how I alarm.
Hi grant -- so kind song.
How are those fish and chips you've had them what -- twelve days in a row.
Yeah exactly exactly.
Mind -- it.
-- where -- I mean why is stuck there did you go to London tell everybody what you travel -- why you were traveling there in the first place.
Sure well I needed a break when you guys that I'm like -- I -- -- people on -- and I am at a grand here went Monday and and then carry it.
And came back -- Monday and I'm Harry on the Eurostar did it -- that light and what -- nasty it.
And really didn't know what was going on -- flight not someone carrying a paper and thought it like a national enquirer.
Or some kind of hate her because I thought I had app cloud and these crazy headlines and that's how I found out.
Lauren how is the communication been I guess initially from the airlines.
And then even from -- Regular media -- outlets there in terms of what you're supposed to do.
Big question and I think airlines idiotic in my experience I've had.
Really good communication -- that I fortunately have not had to put down the airport I had a late that day.
I think notified of my -- can't bully and a day at a time you bill and calling out and talking dammit actually enable you get -- -- and each time when they're back.
That as far as I'm in media coverage out here.
Beyond your -- and then there's still kind of the defense does no one really knows what is going on or what's gonna happen -- I mean -- most reliable patent.
Add in that match which is like he air navigation services provider -- he had a head giving -- Pretty regular at eight every few hours -- that's what we've been relying on.
Grow we have talked to Matt McAuliffe also stuck out there he's in Denmark notes imports if you could cycle get a beer but I'm.
But you know -- out there and business so -- -- could write all the soft as the cost of doing business out there but you.
Out there for personal reasons.
Certainly by no means you need to be specific but you clearly -- -- don't think it dip into your own pocket to pay for all the extra stuff aren't you.
-- I've been lucky again that I didn't Ing at the art and with my friends now I haven't had -- -- -- I have had Q black and get a little bit Q my.
My eight it out out -- that I would like I.
Again I can't really complain I'm a lot better -- and most people are -- are in my situation.
And you're away from months to which this certainly is no reason to complain Long Island -- It's as well we can't be nearly as bad as well you know that can't stop -- captain -- who.
-- -- -- Great night we'll see -- -- Obama get back here quickly.
Armani and she just called -- -- do with the shows she works on yeah from London.
So doesn't this now become a work trip.
It's always think Canada is -- and you -- out.
Sending you should beyond this massive rally -- -- -- to talk about the call we just had actually that when you tell you something that's more aware of the -- -- nevermind.
I get -- in that.
All right so we get too quick break and we come back Robert Gray he's gonna join us to talk a little about IPO was -- -- heating up.
For a -- -- who talks and come back.
-- the ultimate act.
Foxbusiness.com live Cotter and burns.
We are down four points.
We do something here I mean just give me something.
Do you -- movie in one direction.
I don't care from down 44 points just give me something here Tracy and tell me what's moving this market a very little bit.
I'm not getting anything -- -- -- don't want 44 points on the downside you write him stupid me to say that I think if that wasn't there without.
Knowing your -- leader today first quarter profit dropped less than people feared.
15% -- higher margins revenues slid because well fewer -- airline deliveries who knows it's gonna happen going forward.
But revenue estimates -- reiterated going follower and sucks about 4% in dreamliner fourth quarter delivery right.
You believe that I got a bridge to -- so -- apple up.
-- box safety leader today -- talk about it apple they blew it out of the park there's not one number you can dispute that wasn't a blow -- the iPod itself.
Yeah -- let you know we're down to tad yeah from the -- standpoint but from an iPod revenue standpoint they were up -- to be telling more of the iPod Touch more expensive.
Fiscal second quarter profit up 90%.
Kimberly you could say though -- like that and they said that and and a Mac sales that kills me to 33% increase on Mac sales people are still -- those computers they called the halo effect by everything.
Huntington Bancshares -- Chris mentioned earlier some of the regional banks up Huntington one of them.
Keybank is well what else we mention.
I was on announced the wedding night and -- -- up.
He had great numbers yet.
All because a lower credit losses through.
Here's your Biotech of the day but I know but they do women's health treatments for cancer things like that they have they received -- second patent on a drug for breast cancer treatment.
And number one that big move today in cyber source it's up almost 32% actually Charles Lee mentioned earlier on Barney encoded -- to -- -- -- is buying it.
For two billion dollars.
They are -- -- electronic payment security system to online merchants.
And -- talk about target earlier swell and target had a bunch of theft.
Payment credit card -- -- back yes so.
-- -- -- And in my good play on that see -- BS all right Robert -- view this.
Robert usually very good sign for the markets we have a lot of IPO activity and I and any activity in general that we haven't seen much of it I've been hearing.
That there's more of it on the way yeah I still have yet to see -- we have yet to see it will have to wait and see if there's any up proof in the -- tonight.
Seven companies -- seven -- -- go public tonight we have one.
Already this week so it could be the busiest weeks since December of 07 of course just before the window slammed shut him and the whole credit crunch really -- hold so.
Seven in a day haven't seen that since December of 2006.
December I use -- -- of the year they're trying to push everything out the door and a lot of times as art the best of deals either it's kind of the leftovers.
-- if you will trying to -- about December.
Talking to some folks in the IPO market who either buy shares themselves or -- -- -- negotiate and then find buyers for some of the deal say.
You know there's nothing that really jumps out and grabs you there's no visa and here you just talked about which was one of the biggest -- he has a couple of years ago I.
There's nothing that jumps out at you a couple of and that might tell networks is one of Willis -- -- first look at the list and talk about what they -- -- McIntyre about who may do well it may not.
Alan Harris science is up from your old stomping grounds there Chris settled Alpharetta Georgia the outskirts of Atlanta cannot.
Below 100 million dollar deal are coming from Credit Suisse -- this interest in biosciences alternative.
There -- there are also looking to raise about ninety million Diana boxed software.
To -- speech so this is one that that analysts like about a 160 million dollars.
Excel trusted to real estate investment trust played aired the -- when the bigger -- 170 million Morgan Stanley and the lead underwriter there.
Global geo physical services.
They've cut this deal now to try and find some buyers to entice people to comment.
It's -- now about a two and a million dollar deal on the oil and gas services seismic energy hard to reach energy play here and hyperion it to.
The entry into this kind of a market that's a lot of capital expenses.
-- tell networks had just mentioned them networking gear for small medium enterprise market.
-- bubble because the big boys Cisco there and that SPS commerce.
Chain management software there and it's a smaller got 43 million Michael's 210 million might tell.
I took -- have been home so we will do.
Basically provides IPO data for hedge funds and mutual funds -- Morningstar.
Odds are not my -- morning notes that -- from windows dot com.
It's really say that they have an -- list investor Leslie you've got a lot of the heavy hitters looking -- my -- which is being brought to market by.
-- they Merrill Lynch.
And obviously they have the network in there with a whole thundering herd get it out to folks don't expect to do pretty well -- -- box he says does spoken for pretty well but.
Again we have to say that.
The market's interest did but not in any kind of exuberant pace which we've talked about the show a lot -- individual investors not really.
Jumping into that market to buy existing stock much less news shares that are coming out so a lot of skepticism.
From -- and others as to whether or not -- will be a lot of buyers won't wanna see if -- if all of these guys can go and be do they have to cut the prices disease might come out above the range him.
But what I mean could we all remember stories of people got burned when they had to have palm IPO shares.
-- that was does my the last hot IPO that I can think of that people just couldn't get their hands -- -- on the -- as -- that was pretty decent reasonably critical but that.
It didn't the friends the friends is gone you know that one day pop of whatever it was at one point 67%.
-- now we're -- needy ten.
Financial seem to be still though this sector that -- in the market the most.
-- got you know what.
What's -- mansion to see come back a lot of the private equity deals we've seen a few coming back here and there.
I Toys -- Us in the pipeline that's when that a lot of analysts are you talking about.
Waiting to see it come back and it what's interesting to me is that.
They've been putting out their same store sales and and quarterly numbers recently -- there was a period right after they went private they didn't release this and our nation.
Everyone wants to see what happen -- -- they're not showing -- Bucs apparently it was a pretty bad Christmas the first year they went private but since then.
They have it's like -- numbers out as they get better and better -- like they're trying to you know butter people up enough to bring -- public great stuff Robert thanks them are guy's Robert Gray he's giving us the lowdown on IPOs.
And we might see coming up here shortly hopefully it's not just a blip.
It's actually more of a trend because it is true.
IPO activity is gonna increase although I've yet to really see it.
And as we that we heard from a bunch Palau.
You know in some way from Paulson in -- John Paulson eaten hedge -- -- of course is caught up in this whole Goldman Sachs suit.
They've recently stepped back and said we're not going public so a lot of us that the way to make is just not the right timing because you want that pop on the first day.
That makes a stop all the more sexy all the more reason -- -- to go out -- buying it when you have that first -- -- Certainly has the momentum gives you some him right out of the gate Marlins for his -- view it as founder and CEO of he'd build its e-commerce -- -- company has filed a little retail right now following him on the right thank you are -- all right retail in general.
He has been picking up we certainly have seen at the consumer CC back the online retail side where do you see that going right.
Yeah we just of the -- -- men's javelin with a survey measuring consumer confidence and that but thought the -- We found that from Q2 people are going to spend 7% more than Q1.
People seem to like on the chopping quite a bit and it's easy for them to open 24 -- seven you get good deals and a comparison shopping.
They have quite frankly -- election only -- united that this story F twenty's you can look at online and look at 2000 of them and that's all benefits for consumers that when people like to shop online.
-- second quarter and it is because the summer's coming and everybody wants and stuff is it because -- you know.
Spring is in the air is because I don't want to drive.
Well you know you have two big events in people's lives mothers say -- Father's Day which helps people spend.
That's part of the dynamics -- of people are recovering from the recession last year and people are starting what we're seeing wallets are trying to open up again.
So we have multiple dynamics of the same time partly people are spending more -- you have seasonal issues with mothers and fathers -- And the summer's coming of people start buying stuff to renovate their house that I thought -- Before we get in the specifically.
What you -- he -- our people in general becoming more comfortable because.
-- but also on this table and in our viewers -- online anyways I mean they're comfortable with it but there's still large percentage of the population that.
Probably remains uncomfortable to shopping online -- people becoming more and more comfortable.
He really it's it's only things we measure quite a bit and you know people are getting more comfortable buying -- line.
But one of the things -- are -- still one of the biggest issue was shopping online security yeah payments.
When it comes to giving you credit card or bank account information on the lab people get nervous than just -- like doing that.
As worried -- it comes and we we allow people to shop online without giving any financial information of the check out.
So security is a big thing it's one of the barriers that that essentially is going to scale -- e-commerce so tell us more about that -- so that.
Your company basically.
Blocks all my information and allows though the payment to go -- yesterday -- is a way to shop on line that's pretty used money that you have stuff using credit card.
The most -- form -- you're shopping with your email -- -- providing any financial information of the -- -- so.
Credit card numbers bank account information Social Security virus less than any of that you don't you don't have to give and -- that information out.
Use let's say you're shopping -- one of the sites offer -- bill -- here -- that Kmart buy dot com -- in Iraq.
You know we tend to go after him -- the large retailers so you you go to the payment -- you fill the card with a payment page.
You get a bill from me -- me a log into your bank you paid the only thing when you pay your phone bill electric bill.
See -- you know you trust your bank you like the security if you think you you pushing money from your bank -- -- -- Marshall.
She shopping with you emailing your shopping from money that you have as opposed to think abortion -- then -- -- -- this account somehow you have to have money in the account so you you go to pay -- AT&T bill for example you -- -- -- -- concept.
He logged in to online banking you pay you bill me.
-- you paying for money that you have.
You have to have the -- and I think.
-- but it isn't like eat it isn't like up PayPal you have to have money in your rebuilding Iraqi -- to have and you're checking account.
That's -- and this is where your money as he uses for day to day living you can use it to pay bills online you're accessing that money to pay the -- So you know -- that -- access -- my checking account not the merchant it's actually did bank the pacs are and fascinating transaction I'm moving money from the bank to me to the martian.
But it's the year you logging into your bank and you paying the -- -- just a -- back like credit cards is a merchant then paying you Barack.
-- we we we charged 1% percent 1% herself or what what is your growth in the over the last couple years all we've been I mean this is a great market to the end of the world famous as as you mentioned site resources it's just been acquired by visa.
In the world of Davis is changing so rapidly we've been going through tripling the -- number of sites that -- a moment.
And it's the macro dynamics you know there's there's there's a shift in appetite away from credit instruments to cash and cash like and so and so we we benefit from that.
So I did get deals on silent with your vendors do you have to approach them -- -- -- but part of signing up new buildings resource deals from our vendors our exclusive -- -- if you go to -- bodybuilding dot com.
You'll see all kinds of offers from -- free shipping ten dollars off.
There's 1% cash back -- every transactions also read the link to this part of the deal whether you shop with cash UV pay for my if you have.
But he also get good deals from the marshals on the off beat them great discounts -- Are you so are you thinking though that maybe that growth might become restrained a little bit because you said you target large retail.
There is there is -- little finite universe there.
People aren't using credit as much now -- in three and four years they might revert back to using credit cards.
It do you -- are you looking at other ways that you could you generate growth in the next 3456 years well you know the.
There's a shift an appetite now on people wanna pay for money that they have so you think that that -- is.
Is all for a lot for the next ten years spoken that's -- -- up again so we we're concentrating on having more marshals off pretty -- that's the primary -- And there's going to be adjacent markets that we go after so for example feel Havilland banking.
You can walk and we're selling 5000 locations we can -- and person you can bet all my son and -- -- -- my idea yes.
These are all you know adjacent areas we campaigns on the transaction.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I'm so over that worry attract -- people out on the street find out that is basically said for years and was gonna steal them is -- -- off.
Clinton a break we'll be right back Gerri -- this -- and talk about political.
-- Lessons from Tracy here's.
When you're putting stuff -- your storage bin.
-- unit put everything good what you might need even even the the most remote chance -- you wouldn't need this.
Put that in the last -- get it first everything you need a senior storage unit is in the back.
Not only do you say they gets weird as I say -- let's not only is it in your storage units in the very back corner of your storage unit.
But the odds right I know that the way everything came off the moving truck -- the things that I would need an -- forward that's our goal with sacks in the news is a lot lately Gerri Willis who is.
Talk about how angry Goldman Sachs must be if they don't a lot of money to politicians and a lot to Democrats and not really getting much from an -- I beg to differ so.
I had a good luck and and it -- I.
A lot of money they -- got -- -- -- all that matters let's take a look at dad political giving to Barack Obama 2008.
Who was the number 11 Wall Street -- it was Goldman Sachs giving almost a million bucks.
-- gave 700000 came in at number six number seven JPMorgan number seventeen Morgan Stanley and you know how this works you know you've got to get -- as a packets very young Ricky.
I'm sure the doors were wide open it would be even higher.
-- might question lies pistol without a lot of money from TARP they really got bailed out here yes they paid it back we'll look at -- return that they get on their money so.
Let's take a look at this show for every dollar that Goldman donated.
They got back 101052.
Dollars that's pretty darn good that is -- fantastic.
Way to do -- that TARP return.
That's what they get for every dollar they gave -- political contributions to Barack Obama and the rumors I just showed you.
They got back 101052.
Dollars in TARP -- That's pretty good that does.
-- hold on a second when outlet that so they got that TARP money.
But that was a loan that they repaid.
Within -- interest but they really really needed it and it was coming from nobody else.
Nobody else but coming up but -- you're saying so it could it's probably a little it's probably less than 101000 a buck.
It's probably my life.
With interest ten it's sort sort of what I'm saying now I think some people a little bit with Goldman Sachs is.
-- didn't need the money they were forced to take the money.
They eventually took that money and that's not the only thing they got you know treasury did blown out -- of folks.
And more short driveway and big moments -- that make no mistake I always think household income NBA how you can't see the TARP was a big fat positive.
44 banks like Goldman now I love -- actually said they didn't need it but right.
Not if I'm not I'm not saying it wasn't a positive for them I just don't I don't like it -- won a dollar given a dollar -- for dollar I don't know if I can equate one vs the other.
Well as you know we are we are taken some liberties here I'll give you that that's absolutely true -- I think you've got you know look I'm making some broad sweeping generalizations here.
Wall Street gets heavily.
Washington -- -- very good reason because they get too big to fail out of it and that's the kind of paycheck that you can't buy and.
Where could even argue the numbers higher because they're -- interest -- loans so they get these loans in the government.
Even up their trading desks with -- -- right right -- this money out making -- would even if it's 21 over.
-- the government's given them cheap money right now there's no doubt about that and I definitely benefiting so you can even argue it's bigger what about the do you think that Goldman Sachs -- they give a million dollars to the Obama campaign do you think they're thinking though that.
This administration is gonna come down heavy on the banks as they have here over the last the I would even say six months and with financial regulatory reform.
With the with you know the Volcker Rule him with just hammering them with everything with the latest SEC alligator.
You know how this works that played both sides of the fence they give money to Democrats they give money to Republicans -- -- expected is that you know I'm doing a favor for you you're gonna think of me.
Fondly when it -- regardless of regularly value but the but the reality here is that the administration is now -- a lot of political trouble and they need to make up some ground and I think that you know as we've seen I think the Wall Street firms are gonna take it on the chance.
Do they deserve it hasn't -- a flood the question is are we doing the right thing for -- system.
And that's what really I mean they lost their biggest cheerleader Jamie -- consistently very true disheartened by this whole situation and you know what you gotta wonder if going forward.
People are gonna people meaning companies companies are gonna think differently about giving money because -- -- they get more amenable to global leader Harry Reid got 33000 dollars to from Goldman and Goldman Paxson individual executive says that's not enough and neither does send my address to Goldman that you get money back but I.
I got up a theory I -- and I went well -- My pleasure Gerri Willis getting as of the date on what's going on with these -- Goldman could hardly get out of -- that's that they maybe you can help them -- just saying look.
You see if -- Lloyd Blankfein you got some things you put your storage hide just come to me for some advice I can tell you because of all the wrong things I've done.
In terms of putting stuff in -- my storage pod.
He would -- Lloyd Blankfein does not and even have a clue as to what much a new little storage pond is all about T I am just so beneath him he would know what to do Giuliani did not knowing what to do.
Jordan's here thank god Jordan and mean senior manager of the tax department of amp are safe for me policy and -- anorexia.
Good to have you thanks for having me most most people don't know what's doing apparently no one did the right thing last year but -- we had no money right.
Well with the SE PA we get a Harris poll.
Campbell we saw was we're trying to measure people saving habits what we saw over the last year about 50% of the people little bit more.
-- had some trouble saving this year but the good news is that means almost half the people were able to save this year despite the economic environment we're faced with and we're viewing that as positive news you know one of the things I thought -- was look at your numbers.
6% of people who aren't savings aren't saving would like to I thought that number was extremely low I would have thought it would have been more than 6%.
That because I -- thought the great majority would have said look I'd like to -- I just can't but it's only 6% of the 54% that offensive.
You know -- number that I focus on a 60% of the people we spoke to whether it was in the -- amounts.
-- category that recognize that saving is part of a lifestyle.
And what that means is that there recognizing that it's part of the everyday habits it's things that you have to do differently -- -- every day it's not -- issue long range.
Big moves it sure every day habits it sure.
Bring your lunch instead of spending ten or twelve dollars and buying it out.
It's having 25 dollars -- a hundred dollars whatever may be from each paycheck automatically put into a separate account that they recognize that it every day changes that they need to make right.
But to chris' point they recognize it could but only 6% of them actually want to do it it's like me recognizing I shouldn't eat that slice of pizza bomb that haven't anyway.
I hear what you're saying.
And what we're trying to advocates who are 360 financial literacy program is that people in all stages -- need to move up from that.
Recognizing president doing and we're trying to promote them doing that.
-- is a question we -- the fly F I've never been a really good savor my whole life.
Mom had a late start means the -- need to get a get a plan of action and what it did he give you -- -- say hey it's never too late you can start -- First thing I recommend everyone do is make a budget understand where your money got a -- -- you sat down and put on a piece of paper.
How much you're spending on entertainment dining out and then you actually look you credit card receipts you bank statements and all that those numbers are gonna -- exactly.
So there's a little bit -- homework involved it's really understanding where's your money going.
And how can -- allocate that differently whether it is you know bringing in.
Dinner and a dvd instead of going out to dinner and a movie.
And things like that that can really add up over time -- notion of paying yourself first really does still -- doesn't absolutely and I'm glad you said that.
By paying yourself first we want people to do is say look.
I'm gonna write that check to my savings account first and then I'm gonna figure out what I have less to spend then I'm gonna pay my bills and I'm gonna do all my of the things that I have to do because if you wait to save what's left at the end of the day.
It always seems to be less than if he started out at the beginning.
-- are we -- a complete shift in mindset with the consumer nowadays where they're spending.
Less -- the credit card then more of all along using cash.
Using checks and using cash in the money that they have -- out debit cards is -- that we're seeing now and we're gonna continue to see that.
From here on out.
I think people more cognizant of if they use their credit card.
That that bill still comes due at the end of the month and it's not as easy to just let that run up to -- -- is not as cheap as he used to be in terms of getting a raise getting a bonus finding employment so I think we are seeing a shift a little bit of a shift and I think the shift is more so in.
Saving for things before we buy them then so much using cash for plastic I think it's just been monitoring get back to basics from what our grandparents used to do which was I wanna buy something I have to say -- I can't Biden and figure out how to pay for -- that just doesn't work.
You know if you're not -- reason people stopped giving to their 401 -- last year was that their employers stopped matching.
You know they stopped so that notion was well I'm not gonna get and that's why I mean why bother and we seen -- matches come back and loan commitments.
We're starting to see some of that come back and I would argue that if you're not getting the match from your employer it's even more important to contribute to your retirement account it's even more important to put something away especially.
If you on the younger end a dollar now can really grow over time and our website 360 financial literacy -- award.
Has tips and resource is -- -- can use to figure out how much would a dollar from in my thirties I put a dollar away now how much would that be when I'm sixty and it has these tools for each life cycle.
Whether you're just joining the workforce -- near retirement she can really start to play with the numbers and look at it and say you know I better get started it's never too soon.
It well I think he was hitting a lot of people see.
The -- savings vehicles right now -- money market accounts and things.
Giving it's no return I mean it's basically like healing muscle putting your mattress you gonna get the same kind of return.
It are people educated enough right now -- all the different options that they have up there you think he would to sort of blown away by -- that they'd they'd almost rather put it in their mattress.
I think that people are still -- little concerned and the the stigma of what happened in the financial markets and with the banks over the last couple years though still wailed people.
But even if you're just gonna put -- your mattress it's important to save that dollar rather than spend it so we can get people to make those decisions to save.
Then we can focus on where they should be saving that money.
During your message out man you're good you -- -- -- Ayman senior manager of the tax department of amber.
Say again policy there is an image see it check -- the website 360 financial literacy dot org by Tracy and I are already matched -- if you haven't been yet.
-- disillusioned when we come back.
The -- of match dot com.
Is gonna join us don't go anyway that is something -- me kind of.
Chris Cotter in Tracy burns Tracy once you please tell me what -- your life isn't -- 100 dollar bill.
A -- that's it that's a coma not sit.
I about it.
The first and last time illiteracy it could -- -- yeah exactly it's a good decade a decade that's ten years of -- aren't.
To come up within three new security features -- this -- money's going.
Some of all these people had to come up with this thing.
So there's three new security features on them and I'm gonna read -- you it's the new portrait watermark of Ben Franklin.
It is the security -- red and the color shifting.
Number 100 that's -- there's the blue -- threatening CNN you -- -- new money.
Dot -- to get more details on this thing it's coming out February 10 of 2011.
-- approximately six point five billion.
Older designs already of the older design one hundreds already in circulation and -- of course remain fine.
But next February the news this noon.
100 dollar bill that took ten terrorists -- and well designed much money do you say they spend on that did you say it would not say no -- lot I oh yeah.
Yeah ten years is -- and you -- that's going to be a lot of wind up paying all these people well that just goes to get him up where art and sport Howell expense of counterfeiting is.
In our society it was that important that they spend ten years figuring out how to prevent.
Counterfeiters -- for one -- within the ten years the counterfeiters came up with something else.
They're one step ahead of -- there because the -- do you think business I know I'm headed -- -- -- -- steal from you we will see but again like I says -- why I suck at stealing the very interest in the cockpit not made that statement.
That's -- treatment brave front I'm not an -- I got this feeling green and the truth is all over my face which is why.
I would be horrible.
At match dot com.
No you'd be great idea are ideally bring a lot as you earlier he's the sealed hearings that are wrong access Greg should be perfect because she would be honest when would you put that together -- -- -- -- one -- -- -- -- -- -- -- -- -- -- -- -- And but that would be if somebody behind -- we -- -- that what you've got to do.
Crime doesn't pan match dot com -- now you've got to be on estimates that it's the best way to have success how are things going on match dot com things are great things are great we've had that with had a great run.
-- we we just completed a survey which was really -- that the desire to sort of quantify exactly where we are both Mac dot com and and the online dating industry generally.
And you know we've always known instinctively anecdotally how big it's becoming -- just through meeting people and and having experiences.
-- what I -- -- very comprehensive study and it it was really quite.
Startling which is.
-- it online dating has now become sort of the the third most popular way for people who are getting married to have -- their spouses in America.
-- one in six new marriages are between people who -- on an online dating site.
And a fifteen years ago Obama didn't even exist so you've got this thing that's existed for thousands and thousands of years -- -- people coming together and and forming these relationships.
And something you know that so knew his come on taken such a prominent role in in all that.
And within that category match dot com has has been by far the biggest but.
In general I think -- Petition to be society's changed so much over the last twenty years people work longer hours they move more they get married later.
They're more single people who -- older and those traditional ways you know family hometowns.
College whatever we're used to serve really meet your spouse.
It's become harder for most people are not online dating and match dot com particular really stepped in sort of fill that void.
So my initial -- -- -- -- so it was what's the divorce re.
But I did you didn't listen I'll let you -- believe I was finished and I'm addicted traditional way and my national flag and say so I suppose you know the odds are OK what I.
I think they're equal on what you're that.
They are we we we've got -- -- -- I think the finger remember is it online dating is sort of a misnomer it's online meeting like you you meet somebody online and then.
After that moment you're just two people who were at a restaurant and a bar whatever you either hit it offer you doubt right now so I don't think there's this notion that.
Once these relationships are formed their fundamentally different than other relationships -- -- form.
What you meet someone at a party where you meet someone online you then have to get to know each other and it takes.
Months to decide whether you're right for each other I don't really think fit dating is fundamentally different it's meeting that's that's really been changed -- -- mind it.
I was just -- that our camera and found this -- you -- My speculative -- hits the same cameraman last Amazon -- -- I think that outlets and my brother this is no I got engaged.
Two weeks ago yeah disseminated about -- to December now two weeks ago that throughout this is Sicilian skeptic in me because I have to tell the truth at all times and will be awful thief.
I don't believe anybody else in the world so when you think that little profiles -- I know that there are -- Legitimate.
I think you don't know 100%.
I think people unfortunately -- to people and all contacts of that meeting and dating and.
You know you meet someone at a bar and they tell you acts they may be telling it not be telling -- the truth.
But I think the reality is that over time people realize that wind doesn't actually help them -- I didn't see why.
Really -- you lying.
Yeah of course he lied look -- -- up I don't.
-- -- So this is a crowded space immediate and -- you guys all spend millions of dollars advertising and yet we're all over the place yet how do you get an advantage.
G in this space why I think.
Is that they're really two things it did drive.
Positive online -- -- -- is sort of the technology.
The product the other is the people that you have on the site so you can have the best group of people in the world but if you don't have the right tools and experience -- sort of meet them it doesn't help.
And and vice Versa which as you can have the best technology in the world that if you don't.
We have been literally over a 150 people who were just dedicated technology and product never -- hundreds of people in customer service and all this week out we have the best product.
And we have the biggest community.
Of people in and and -- -- so I think it's just a fundamentally differ experience -- match.
And it's you know borne out in the fact that.
We -- to more -- that twice as many relationships twice as many marriages setters are nearest competitor.
It's it's through frankly -- a lot of work and they really are different experiences OK so there's a fee.
And you pay me a track and you get on any do you -- and god willing -- tell the truth and then and so all you're doing is bringing people together.
We're what we're doing these were helping people find like minded people.
It may not he's sort of technology terms it's -- friction less.
You know easy you don't have to get all dressed up and got -- bar and spend thirty dollars on drinks and hope that you meet somebody.
You know it's very convenient way to find people that you have interest in you you -- -- you communicate you form a connection.
And then you go meet in real life and if you haven't format connection you don't.
And I think it it.
It's literally about five dollars a week you know is if it costs and if you think about what single people spend on being single.
It's really you know it's a it's a very small price to pay for that sort of extra option you know it's not the answer.
I would recommend anybody to simply online date and an assumed that that's going to be the ticket to their happiness but it's.
One of the things that that single people should do it's it really works for lots and lots of people.
Obviously you guys drilled down your numbers defined everything I mean the end do you have numbers -- that.
How many dates -- each member typically goes on how many dates it takes for them to find the one relationship etc.
you know you -- here.
Industrywide one in six marriages but how many dates does each typical member have to go long before they find either.
We're -- actually get there it's actually it's from.
But we have those that summer I frankly don't know the -- come on the stats so I'll let them but the reality is that it's been pretty heavy distribution.
Mean there's some people unfortunately who who use a site that don't actually use that but the people who use it but it's actually very good.
Because effectively as I said.
You end up -- -- bad dates and it's not like the blind date because you get to sort of spend time you know on the person getting on the figuring out what you have connection.
The success rate went to blind date is actually pretty good and up.
There's some that we have from the thing that.
Over 50% of the people who got married from some of the -- and online dating -- that that person within the first 45 months I don't remember I guess.
So -- so -- it's it it saves a lot of time.
You know -- had not not that -- in that state time to -- People are busy.
And so you know you may if you make it out three times a month is a single person on sort of a social event that's pretty -- But you may not get a -- out of that offer two or three months.
-- in addition to do all that you can be on line you can find people you like you can go out with them without having to sort of make that big investment in in everything outside I'm a super skeptic but a year ago this summer I just tons of people use it and it's -- -- for lots of people.
It is -- cameras for example what is what's next had a baby.
-- -- -- think -- make that next step and you've got the technology and it only got ten seconds of added I think look I figure out he has.
The technology is changing every day every two weeks match dot com changes that's why we've got a 150 people who are out there you're.
You've got mobile you've got everything.
Video everything else is coming and ongoing I don't think it'll ever so check it out yeah dot com now have the drag race could -- all right thank you guys spent a -- -- cnn.com.
-- We're up six points.
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