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Happy Monday -- foxbusiness.com live -- brands and Shapiro and for the ailing unfortunately Chris potter.
Under the weather center and drank too much saying I couldn't get -- that Monday morning telling Chris Conner -- Or maybe you know he's bragging about record bench -- for himself and.
And endured the morning as well actually and now -- got a big I don't I don't know I don't know either way out of that but ailing.
-- better Chris especially since I had to do the morning hit some very early.
-- so what do you think what's gone on and so Friday we start talking about elements acts.
We got Goldman Sachs going all weekend long analyst Rick and in part -- Texas its recent Tuesday big question now I guess is who's next -- -- that's an easy one.
Because it wasn't as Goldman that was doing it yet Deutsche Bank doing this in the Wall Street Journal talked about this but if you're listening tonight can I plug -- what it.
You know the first question asked at that as -- -- press conference the phone right with this guy name Adam from fox.
And in that question I ST I can't answer that aren't yet ready right -- that question that was.
Broadcast on a competing financial network asked specifically about go to bank.
And certain other financial institutions on Wall Street as they were all -- -- has produced crazy about this whole thing coming we don't get caught up in the languages -- CDO as tightly structured investment -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And I told you after building -- house to go sell it to somebody right I've bought insurance but don't tell them that's all that Goldman is accused of doing I don't want to minimize it.
That's the fraud charge but I listen as some people say that.
Goldman is being charged with fraud because they too bought insurance.
Against these CEOs that they were selling worldwide and that's not fraudulent that's I think that's not -- not neither is it fraudulent or illegal now.
We can discuss whether you it's -- I think the -- -- clients but that's not the issue here.
I guess the big question is can -- be are they going to make an attempt to use Coleman the example.
And bring them down and you know given -- whenever albeit -- -- -- make an attempt to bring the -- down is it.
Is -- the SEC trying to get a little brand equity back.
SEC two things happen Friday one thing that everyone it got no attention at 2 o'clock when we were all talking about Goldman.
The FCC is needed in a report that they released at 2 o'clock that they absolutely blew it on Allen Stanford finally -- -- -- They do in 1997.
The guy was running a Ponzi scheme and they did nothing to stop it and that what that seems you recurring story with the SEC but.
Speaking of recurring stories we got black dashing Webster in London god love them from continuing to report the volcano that no one can nationally -- even name.
Yes and yeah I know all the bad that's sick and I thought this weekend I would make -- valid attempt and then I act -- noticeably so I'm not in an attack now.
So let's go so do you like -- play.
Yeah go ahead except if we could -- yeah.
I have no idea what I did see a pronounced around it somewhere but I attempted Clinton sounded like I was you know sneezing that's what I that was -- -- ahead -- -- my throat you know.
So what's gonna actually I access it so -- expect yeah yeah some of the show.
A glimmer of hope pricing and Adam get this off the five days of being in the shadow of that volcanic ash cloud reports now say the UK airports could open tomorrow beginning up in Scotland at 7 AM.
In the morning local time eventually Heathrow and Gatwick by 6 PM tomorrow local time we shall see and is understood the UK airports.
We'll then be allowed to conduct operations 24 hours a day until the flight situation returns to normal.
Looked -- and also has been given permission to fly fifty passenger planes into German airports -- would definitely seeing.
Things start to move part of the reason for this is the improvement in Iceland's volcano may be just cooling off a little bit maybe.
Reports say the latest eruptions from the volcano appears to contain more steam in less slash some of the -- and -- the substance sounds like parliament behind me.
Giving hope that perhaps perhaps the cloud will easily dissipate the -- flu have been some signs of progress elsewhere in Europe guys Austria.
And you're excited about this -- -- -- its airspace and was -- partially openings at many airports including in Germany Italy some regional airports in France is all good news.
There's going to be a while the oldest -- some business people stranded around the world today.
The British government since -- the royal navy three royal navy ships are being sent to France.
And Spain it's a Spanish armada -- again.
To bring back as many stranded brits as possible British you know he's not happy says the shut down costing the carry up to twenty million pounds -- -- now -- the -- To give -- some compensation BA chief Willie Walsh saying -- -- while both the EU and national government should provide financial compensation.
For the closure of airspace and -- the arguing against.
And finally in love this calling it pay European embarrassment and -- European -- the International Air Transport Association says.
That European comptroller's office absolutely no risk assessment no consultation no coordination and were civil.
No leadership so now the finger pointing begins -- -- -- that volcano.
Out there seems to be quieting down a little bit but you know what mother nature it could suddenly erupt again and we can be back where we started let's hope not for those -- People trapped -- you have a flight coming up in the future.
-- actually this is scary name.
I -- got to let you go but would you get on the plane that.
Are you know want.
Yes I probably would to be honest with the NBA and -- console and -- frontal -- -- test flights.
This weekend you know literally just flying off right through this cloud find hardly any damage -- -- Now apparently the the material coming out of the volcanoes that 6000 feet as opposed to going up to 55000 feet and -- -- -- that's a lot -- is so I would fly once and -- -- company a green light and this plan to have maybe the EU compensate the airlines they could have maybe Greece could.
Finance the bonds on the right.
Hit it -- I was hoping I -- -- -- it well actually I'm I'm not sure I'll get on the plane that you're more than welcome to come here.
-- that I'll pack my bags -- -- on my -- excellent thanks to cover all the sports and one of these days I -- and while you're at had to say the name of this volcano.
Ashley Webster out in London following.
Following actions conform to that just -- -- that I we're -- go out to us again back on Skype Kenny -- grip of potential patent on the and joins us now we -- talk about this market Adam and I started earlier talking about what Goldman Sachs.
Is doing to this market -- -- you see do you see this as a blip or do you see this as you know somewhat.
Damaging going forward.
Citizen is short term noise and you would come a long -- since the low.
When number 111000.
-- needs its investors probably looking for a reason to -- I mean obviously SEC charges that are pretty serious that any -- -- is gonna come out tomorrow earnings.
So we're gonna look at that and then you know it's going to be a long period of time before this gets settled out whether they settle or you know it goes the full alliance it's it's a reason the -- In market that's been -- -- -- little -- -- in the short -- so that's -- our -- that -- -- right now.
Yeah for now but what what what what are you looking forward as to when you might wanna get back in because look Goldman Sachs will survive whatever is gonna happen and have -- earnings tomorrow we know that -- Bonuses of what five point four billion.
There's going to be financial regulatory reform this could all be politics about that but -- developers and investors to might trigger point to jump back on.
I would probably be -- indeed gotten cash on the sidelines and you're looking to get -- -- you might wanna put put some men.
For us we don't really play any individual -- -- -- the individual accompaniment we like this after you see that financial services is really been one of the leading sectors and that's what.
How we played we -- -- they're really not the individual issues.
I mean this is gonna market and you know you have I want to assure you wanted to kind of bottom dips and here's an opportunity where -- was -- 13% for -- on Friday.
I think anytime -- -- look back and you probably see that that might have been -- buying opportunity.
That -- gonna -- -- that.
Yet because it got -- -- what wanted to five at one point.
I think I'm -- -- okay so.
He sees you witness sectors -- -- talk about ETS we're talking about -- the financial sector and the excel left is that that that's what exactly.
-- -- -- Or.
You know the ET there's a couple of idiots out there or the you know there are mutual funds that sector funds that we use both of them depending on the count -- So that's that's a good way to do it I mean an indirect way a lot of your values.
Small cap value mid cap value a lot of those have the banking in there because they just got destroyed -- those unless you know in the downturn 27 and in 2000 -- today so.
That's that's an interactive to wait like financials and you've seen it hasn't -- the sectors that Atlanta the last two months.
What about the other banks that are being investigated they haven't been named officially by the SEC but we all know the difference Merrill -- -- -- Doesn't exist anymore you know from that -- let them.
Merrill did these CBOs.
Deutsche Bank was doing these he has Morgan Stanley is doing this kind of stuff.
-- -- he's he's gonna go after them and might that create a buying opportunity for me with those financials.
I mean it's -- a little.
In terms of the SEC imminent they're trying to save face a little bit -- me like you said that earlier they came out Friday and they admitted they knew about Stanford since late ninety's.
Mister Madoff and his Stanford.
You know inferiority years later and now you know he's got to show that they had done some things so.
-- -- I'm -- -- -- -- -- You have the whole issue about -- and Freddie Mac and Fannie may mean how much they contribute see this whole downturn.
I mean there's a lot of fingers -- point but if you're in the investor you're on the sidelines maybe.
Sitting in money market doesn't -- You know we're gonna -- -- with tears your investments and this is marked that he got and -- didn't listen to all the -- the last years you made a lot of money and that's who we really try to focus is not focus on the noise -- just look at what's happening in the market.
And there's opportunities to make money in this market right now.
Kenny can you talk about emerging markets at all I mean again it seems that you like that the ET FEM.
We turn China India -- -- and you know what do you like more allergy just like all of them at this point.
I don't either look.
More volatile and then the domestic markets.
And yards and also.
The currency situation but those those economies this country's.
I mean they didn't go as far down in terms of the financial crisis in terms of GDP and I mean on the recovery they're gonna recover -- better than -- -- in terms of growth that you see better growth that's countries -- what you're gonna see here the US.
-- obviously it's a place that we put money it is more volatile it's a riskier investment.
But he didn't you -- -- your heat through your years there's been tremendous gains and in some of those areas yeah and we try to participate when you know it's only upside.
That there's risk involved and in those markets but that's order you know it it then those -- and parts of investment you know -- that we've allocating money to.
And I know we got to run the quickly Kenny this second you don't like -- -- saying health care Biotech interesting.
Pilot friends -- -- -- and utilities have Biotech.
-- Ever since -- The obamacare got past he's actually just seen it that -- -- really just can't -- -- flat so.
Oh lead whether investors were anticipating -- that he really just rotated Matt you know to financial services.
Small had -- He just it -- like the money's gone away from that and and we can't follow price movement we're we're more of a trend follower and and that's really falling into the bottom of our rankings.
Safety thing -- health care.
And then really the bottom wrong bear market funds and so much says but right now it you know they're kind of the bottom -- the rankings you know we don't allocate money to where you know the money's going away from.
Bonds again in the short term bonds there's not really been a whole lot -- I mean it's a flight to safety -- that they did pretty well Friday but.
Now that that's kind of what we're seeing right now -- landscape.
Thank you for sharing insights and I can't tell you this whole sky things really working for us lately and he made it through the entire interview we didn't.
They improve the technology on its -- good yeah.
That's the -- is pretty neat sound there back and look at the management candy thank you being on us thank Kenny thank you.
What about Skype but she's at home.
Well it's great and it's free that's the that's the rumor that actually taught me.
My husband dot com I'm Casey learns.
Adam Shapiro in her again Chris codified into the -- -- exactly what's wrong with them.
I'm going with a rough Saturday night -- rough Saturday night -- -- Sunday morning.
Angle right it's -- Forgotten again I am thinking streak and I think he was.
Researching something at a book fell on his foot accident that -- that that's it that's manually.
Or it could -- have like this time a year people get allergy thing going to get a bit of a cold they don't wanna infect their car.
Clearly there has high and I don't wanna -- it ill babies at the hospital.
Maybe we would know -- -- president of Mount Sinai Medical Center is here with that I don't think my work.
Those -- with you at -- hospital -- even if I knew I couldn't tie day I have to they -- well I.
Here you're here to talk about you've got this new partnership is it is that correct -- -- health care conducting.
Great experiment -- General Electric were working on lay out wanted to kind project with them where we will begin the track movement of patients supplies equipment to the medical center.
They've done bits and pieces of this and other hospitals around the world before but this is the first time really that they brought the technology together.
With their rocket scientists up -- there around I was search center to create a whole new model for managing patient flow.
And it's critically important for hospice -- north -- and house was like -- son in New York.
The match isn't very successful hospital you have you move a lot of people what is it that you hope to gain from office well I think that down.
You know one of the things that you realize in New York -- a little different in other parts of the country when little different back in the sense that we operated very high levels of occupancy it's pretty commonplace for hospitals in New York to run it.
85 to 90% not see me most are -- -- most of the time.
And that's during normal conditions outside during flu season -- some of their extraordinary event.
I'm around the country hospitals typically operated -- -- levels much lower than that.
But we would.
Believe that with the changes in health reform insurance reform and the like that the operating margin -- these hospitals and be under considerable pressure so they tour they'll look for ways.
To better use their capacity.
Move and -- 32 million people coming on line potentially -- all right gonna go to hospital but he got in some of them and went up and I'm sure there's going to be a lot of new demand absolutely and it will affect the rest of the country the way we think in New York we've been kind of leaders in this regard dealing with high levels -- buttons and we are successful but one of the ways we remain that way is to be able to manage patient flow.
Clinical outcome patient safety in a very crowded environment.
I think the best analogy I can use for use the airline industry.
If you look back.
Let's say ten years ago the average job the average capacity -- -- on an airplane was something like fifty -- 60%.
I'll post deregulation when the airline industry became much more competitive you saw levels alive she's 85869%.
Which is about where it is today.
Now airlines have figured out.
Putting aside lost baggage and passenger complaints getting stuck on the -- still things we care about.
Airlines in fact have been able to figure out ways to manage those levels of plot -- -- demand that was successfully.
And of course now the FAA has just announced a whole new generation of ways in which to make that even more efficient with landing slots and control planes as they approach final -- But -- I gotta take my blanket on the plane -- -- it's not gonna get you back here let him make any money I -- is that you know what I think he'll get by that point.
With the hospitals are we or is it is it going to be tight with these new -- well it's it's always I think health care.
Operates at a very and operating margin of all the talk about the rise -- health care costs and expense associated with health -- the reality is -- most hospitals in most parts of the country.
Even those that are considered the most successful they operate with a very thin operating margins.
So in fact we have to be even more efficient and more effective in managing our capacity than ever before and that's not gonna change.
It isn't just the fact for instance one of the people writing and actually pointed out with the airlines to the reason there they're perhaps being more efficient as they've removed planes.
From the system so it you know you've got more people are the same about people flying on fewer jets.
Think I think whenever possible saint Vincent's and New York City is closing those are people are gonna have to go somewhere and I'm curious what what what GE health -- is doing.
He's what they do when if you check into the hospital of you know under this program do they put something in you were on you that's like homing device that.
Yeah electronically monitor yet everything that happens is.
Well no it monitors your location so we know for example that if we have patience was scheduled to go to radiology for diagnostic tester and patience.
This allows us to knowledge sort of control board where these patients -- that moment in time -- -- in their room waiting to be transported I think in -- in fact they waiting.
I'm in radiology for the procedures and again.
But the reason this is important is -- we can't find any individual patient any point in time we do that.
All the hospitals do -- so that we can constantly model and project demand and capacity -- key points in the political process during the day.
And there are some unexpected consequences by the way in this technology I think -- that is the being able to account for all of your patients all at once is useful.
In the event of a mass casualty event in the event of some sort of an internal or external disaster.
So they're a bunch of other collateral benefits to it but fundamentally it's designed to allow us to make projections.
And predictions around demand for service at any moment in time.
In that week and moving forward in -- moving forward in time.
I'm -- for example.
And you go -- -- it's not perfect analogy but I think is pretty close.
If American Airlines decides today that they're gonna -- service flights between the new York and -- and London.
New flight -- time -- scheduled.
They don't wait until they've sold all the tickets sold the plane and taken off from JFK to figure out whether they have a landing slot they have sufficient capacity in the terminal.
Where they have enough baggage handlers on the other end to deal to unload that plane and satisfy the customers they've planned all that in advance.
We will -- positions all the time -- Vincent's hospital struggling normal -- shortly when that happens at places unexpected new demand on the system.
Now were pretty good added we sit down with you know spill is just -- objections but the fact is we don't have.
Benefit of the kind of sophisticated technology and modeling systems that this GE program will bring to be -- Gee does this already for lots of other components of their business what they're doing is applying this technology in this intelligence to health -- and the -- of patients and I think.
Did back in the passing thought of his men had quoted me a putting tip of my -- -- -- -- no I think I think my.
I'm curious is this of the system it's not -- just following the patient but I guess the system has some kind of algorithm it is something that tells you the administrator.
Okay we're gonna have a surge of people who need X rays over in this.
Portion of the hospitals that the Pentagon doubts are up I think that it's easy to get sort of hung up on what sounds like razzle -- part of the project that is our idea device radio frequency identification doesn't that they had -- that the patient has on -- -- -- so that's.
That's not new technology that's been around for a long time and there's nothing all that special about it.
-- they've made some improvements and that the devices himself cost about twenty dollars an -- kind of affordable that you can distribute -- -- patients and expect a loss rate of certain amount.
The other technical breakthrough is room and bad level location so we now not only know the -- the patient is on this particular nursing unit.
We know the -- and as bad as opposed to in the hall as opposed to a treatment room.
So that level of specificity is actually sort of a breakthrough and -- -- -- with wait times to two in -- making absolutely active -- to go back to question here's the real breakthrough this is what makes this worth pursuing its the its intelligent devices in the modeling that's behind us now.
So we've always had system for managing your schedule we've always had systems for managing patient transport.
And like every other hospital we've always had system for keeping track of which patients in which -- who's waiting for about an emergency room.
What this does is bring all those sources of information all the data feeds together.
In -- central master modeling board to blouse to know at that moment in time who was we're waiting for what what bottlenecks are beginning to occur.
And how to best manage those.
But most importantly not only does it help us manage this moment to moment day to day.
It allows to make predictions.
You know so today feels like a typical day in April with respect the number of patients that are waiting for -- -- -- -- in the virtual and so forth.
But we were to model the effect of say the closure of a local hospital mildly effective are successful recruitment of -- -- -- Model the effect -- geez what a H1N1 -- appears in the fall.
What will the demand looked like -- it allows us to do things that are fairly common in other industries.
Sophisticated industries but not -- -- and help them and out later this and other hospitals are just she does that worry that tests were an alpha site we're developing it together we're partners and and and building this program.
I think -- has some pretty ambitious expectations about being able to roll -- -- globally.
-- they think for example that although only about 5% of the hospitals in the country have the kinds of occupancy levels that you have a New York.
They believe the market more broadly are those hospitals and operated -- -- occupancy.
But well through health reform insurance reform really an ongoing economic pressures have to find ways to manage as he airlines did.
With fewer planes fewer -- less space fewer nursing units.
And in fact more efficient use of staff how does this whole reform headed -- Buying a whole reform that was passed it's going to be a positive for you isn't it isn't a negative.
How did the hospital industry view this right now well I think that job.
That's probably difficult to answer because I suspect that people across the country of different ways for academic medical centers -- those in New York.
Opportunity those New York State -- we have fairly generous Medicaid coverage today.
On it's probably more of a threat than a benefit there are some things in there to provide interest in incentives for some opportunities to do -- to an -- and things like the so called innovation zones.
But other aspects of it actually just -- frankly economically threatening.
The reduction in so called disproportionate share payments where that through a Medicare Medicaid payments we receive a certain amount of money today for patience -- -- uninsured.
There aren't as many uninsured patients who don't qualify for Medicaid New York is elsewhere so that's going to be sort of a direct -- direct economic hit.
And -- are you modeling and curious because we have to have them and -- was within ninety days the president signing legislation the the pools set up insurance pools for.
The high risk folk.
That -- closer to that now than we were when he signed the bill are you guys expecting a surge of people who you know because they are high risk they're not in his good health there's other people.
No I think what happens in New York a lot we turn nobody away so patients like that typically wind up in emergency rooms in New York City hospitals and they wind up getting -- it may not be.
They care that you I would want in terms of emphasis on prevention and access to -- primary care doctor early on and so forth.
But -- not turned away they get care so I don't think that you know we're not expecting this big Russian demand in the inpatient side.
What we're gonna see the crunch I think is that with the ongoing emphasis on primary care and prevention we're gonna see a demand for primary care physicians that can't be -- they're not out there.
And it will take quite some time frankly for the the educational process to -- to -- Mean you got combatant project is working.
I would say those who want to -- edgy stuff that it has not found that eighteen dollars a share -- saving -- -- late right I think it's very promising we'll report it.
And keeping president of Mount Sinai Medical Center right at street thank you so much my -- -- -- -- but I think that's really adjusting and I do think that maybe they should make products for children.
It just the moment with a little via the call total lease program.
I granted a break and and I want to hear what quite -- -- we get back.
We'll be right back.
I'm Adam Shapiro in for Chris Carter who I like to call Jimmy Neutron -- the -- things.
He's under the weather today -- now and oh yeah I got separated at birth.
So yeah I can't believe in the market that stand the Dow at least down sixteen points and and a bunch of stocks are moving.
Sum up some down big loser today though is com Morgan Keegan actually.
Tests read you went to make regulatory filings and saying they're not seen any new.
Evidence whatsoever that -- is going to be taken over your number of weeks ago -- and there are a lot of excitement block.
Stock went up.
That's backed down it was -- homes.
Citigroup of course didn't talk about it if fox fifty -- -- SP 500 leader today they posted first quarter profit more than doubled from a year earlier.
And -- saying they saw increased revenues is stepping back into the but after that fourth quarter pick up -- -- -- You know we heard from the CEO that.
All all all shiny and well again we'll see -- you take 45 billion -- -- Payer dollars and all will be able to it will actually so please feel free to send.
Washington banking up RBC raised its rating on the company stock to outperform.
It was set to perform outperform stock moves we know that happens.
-- pharmaceutical a cadence I should say pharmaceutical plans to filing an application to the US FDA.
For an intravenous pain -- that it has.
It's up and that was why I was curious about Biotech earlier when our earlier guess that he.
Thought they were done these -- next move they -- but intravenous pain is in diseases -- -- -- We do Blackberry brand name go.
And general and corn out -- CEO group agreed to acquire it if Quayle the prison operator.
-- -- it will acquire its rival.
For 385 million plus the assumption of debt on that so Cornell is up almost -- was over 32% when I left my best.
Prison operators -- prison numbers but be careful of prison operators I'd be careful with prison security guards.
Due -- -- prison security guard that that you know what that Abby on the list of what not to do.
I thought I got that insanity is here with us joining us to -- -- -- what that -- going.
Thanks -- -- so what's the latest on this whole golden.
I didn't know what to call it.
Went -- -- -- Morgan Stanley Deutsche bank and all the rest of them get dragged into it.
Right well that's obviously the biggest question that everybody's trying to figure out including Morgan Stanley and Deutsche Bank share Greg -- Greg -- is that is the trader who is at the -- a lot of these trades.
I took a close look at a lot of the to which it deals in the past few days and there are clear similarities to some the things that happened.
-- Goldman but there's also some big differences.
So this is going to be a matter of that the devil's in the details and then.
One thing with this case with Goldman as -- -- and emails that were pretty -- did so I imagine there's some SEC guys going through.
Emails of these banks and trying.
You know find out what they nude -- -- -- With the Goldman case let's just keep it simple it's a it's a clear cut case according the FCC a fraud it simple.
You you sold something to an investor in misled them into the creation of the investment as well as.
The rating -- the value of the investment but shouldn't the people on the other side the banks which purchased the abacus.
CDO that Goldman was talking.
-- they have known that what they were buying was a synthetic CD -- -- so somebody was betting it would lose value they should've gone into it knowing this was -- to at least.
That that the other side of the trade wanted it to fall.
Yes you definitely assume that I think everybody in these deals knew that there -- somebody on the other side.
It's a question of I think how stupid were -- You know but what think what the SEC is alleging is that.
Goldman was essentially up he's skating the role of Paulson and company the big hedge fund that was shorting these deals.
To the clients.
-- when you when you read this complaint it in which it outlines.
Getting this other intermediary ACA -- Two.
The creator of the tower at the CBS they tree they pay the bonds that we're going into the studio right but Paulson according to the SEC and in some reporting that we've done.
Had a lot of influence into what was put in to those deals.
But it wasn't like his -- at an enemy to good job that wasn't like his word was taken as cold he initially initially said I -- 123.
Columns from mortgages in there.
They cut the list down they get -- down very very low grade California Arizona Nevada Florida.
But they went back and forth it wasn't like they just took Paulson at his word and said.
Here are gonna create a product exactly the way you you want -- we work with you so.
Yeah I mean.
I don't know I feel like there's there's definitely a case for Goldman -- you know hello and I -- -- a fun.
-- you know buyer beware it's it's not cut and dried.
I think that what the SEC's need is is gonna need to claim is that there -- material misrepresentations.
Made to the clients that there were very substantial.
About what this deal was.
These -- overseas clients mostly.
And you know I I mean I agree it's.
When you when you figure out what these things are it's a want for just like -- a stock units -- stock.
And the person who's going -- the stock.
Is doesn't always know who's on the other side and I -- Doesn't even -- all -- -- to know is that it could somehow trying to make.
By the by PGE know what's gonna tell me who's out there short.
Wright episode in less but -- these synthetic CDOs and and that not not defending Goldman Sachs but you said it earlier you know they should have been pretty Smart people.
Let -- let it go for a rough analogy let's say take dog doing put it inside Tiffany box then -- -- it.
The guys over at one of the German banks have royal bank -- -- I think you know who is expose this stuff.
He never opened the lid of the Tiffany box to see what was in there and they have responsibility to do that as well as.
Back to that be an initial point when you're buying a synthetic CDO you know that it's created.
From credit default swaps which means someone's shortened -- expected to blow up.
Right yeah I mean what in what I think to me this does is it opens up this culture on Wall Street that really.
Proliferated in the years leading up to the to the the bust them where you you -- -- that Goldman Sachs.
These guys these guys knew exactly what was going on they're very Smart they knew these things were toxic.
And when you look at the emails in this complaint these guys are very aware of what was going on in in a lot of other banks and I think it.
Beyond the you know the legal questions it raises a lot of moral questions about what.
What is Wall Street doing -- of a peddling these toxic deals to clients and I think it's in in the future.
A lot of people are going to be you know from more skeptical of the kind of things that are coming out of.
Wall Street isn't they they do.
I mean as we speak.
They're downtown right now creating the next you know product to make money off that they that's -- to upgrade from a shareholder Goldman Sachs I want them to get back to work didn't create new things to make money.
Yes but should they be selling assets of people that they know are going to be you know virtually worthless or they think -- going to be.
Virtually worthless because I've talked to a lot of trade like in in the bond world at this period of time late 2006 -- 2007.
People really knew they could see the writing on the wall they knew the game was over.
And what this abacus deal was was just one way to keep it going to the.
I mean is anybody infuriated that as we sit here and talk about Goldman all of this stuff.
We have yet to start the discussion about S&P and Moody's which had a ready.
The CD of the synthetic CEO and say to those foolish investors who never lifted the Tiffany box.
It's all good it's all triple -- winning clearly it was not.
Because I am -- right now right well no let's not doing.
Hillary I know that and I about it in the court of public perceptions right and I didn't say that Charles Payne said that earlier but.
It's all about Goldman being evil evil plus -- thanks so let's come on down on the ability -- You know that that the Frankenstein monsters that the rating agencies I mean that -- is should be -- running up to the okay.
And that it's it's harder to understand that I don't know -- you gotta keep us posted and you gotta come back and keep talking about this kid sister is -- on the way.
Now it's only getting bigger lenders Scott Patterson reporter with the Wall Street Journal if I am building so we we will be able to grab and quick.
But you're right about the rating agencies because we'll -- -- talking about the role they.
Played in all of this and they were being paid by the Goldman Sachs the -- in the Morgan Stanley's of the world and everybody that -- That was their -- you have to pay them and then they -- your stuff and in 2007 you remember they said we're gonna raise the standard by which we -- this stuff and then Wall Street flooded you know they're they flooded the pipeline to get rid of the stuff they knew would never pass the ratings that this victory.
Yes and but.
I think it's easier for somebody at home.
To say it was big bad evil Goldman Sachs as opposed to S&P Moody's and millions and the S&P and -- does have a grace here.
-- -- -- -- -- -- Nice -- thank you very much when.
Look at Bill Clinton who outspent.
When is the woman who -- -- have Argentines yes -- Well if I picked it up from her selections -- kind of like the Goldman Sachs laying out these are they RMBS as you can pick for -- error.
You know there has its mortgage backed securities joke but it's not a that it was not a sub prime time that's definitely not a -- it wasn't like that you're -- responsibility selection which I think he's a great point yeah.
-- -- -- -- -- -- Well we have sort of just containing on the being there I mean you were talking about the Goldman deal and in what is what else is anyone else talking about right now would sort of who's next and and take a look at -- and our colleagues -- the -- -- laying it out nicely and and talking to traders everyone sort of looking around.
Who may be next after Goldman because they certainly weren't the only ones out there we've had analysts on talking about it I've talked to guys about it and and that -- it did tend to bubble up a lot of Deutsche Bank UBS Merrill Lynch which is now on by Bank of America.
Really telling today.
Sitting here comes out with great earnings no one was expecting it to be that -- but one of the first things they say is we're not involved in the -- tax investigation -- -- -- quick to distance themselves.
If they held the -- as they held this stuff on you know that's -- they got into some -- trouble they were all to get off what they are holding its you know they were the taken the brunt and the -- they are quick to distance themselves and be looking out to see who welcomed us as we weren't involved but.
Those are the guys to watch right now and and really interesting to lay -- out -- to -- the journal saying that John Paulson that name again and helping them also.
To create -- Frankenstein monster there another studio that they bet on it was called static residential or start was the nickname there.
Did you make against say they did nothing wrong all participants had had heard not just Paulson but.
They got to pick a bunch of the -- they would like to have in there and then for debate sort of selected the ones that we're not ultimately going to make it.
And there are -- similar situations reported at Maryland UBS so.
It seems to be people were involved.
In the process not just the brokers here and you talk about trying to.
Make an analogy with the stock it's difficult though because.
We don't get just to go and talk to DNC -- -- you include these businesses in the stock and don't include these so that's what makes it's so complex is that you've got.
Yeah hundreds or thousands of these mortgage back securities you're gonna pick and choose a few of them and then created history of the tracks just.
Those -- anti analyst.
And in Elijah Cummings in all those and -- his cronies down you know are starting announces to say hey here's our investigating these banks play ID in.
Because of the -- sold insurance essentially -- undecided remember yankees stopped stop selling credit default passes but they work -- but whether they may also be a beneficiary of this one of the reasons MBIA jumped up on Friday is because they -- a lot of these and if there's fraud is found.
In some reason -- have lawsuits pending against Merrill Lynch and others if -- fraud is found they'll be off the hook so they could they have for insuring -- that the blew up it went bad so.
They may not have to pay off on that.
On the other hand let let let's.
Follow that logic so let's AIG is off the hook for potentially billions.
He dollars and these proposals NEA is -- Goldman -- cut almost 29 it was thirteen billion from the TARP funds but for the seven billion.
Could we be creating another financial crisis because of Goldman -- to return this money if the big Wall Street firms at the start return -- on -- return it and I'll landlord out I mean.
Frank what happens that I mean to say they do is do they go back and we -- The money they paid out as well -- -- and my fastball -- Could be a -- we -- that word in a while but yet could be a call back and what's also -- one of the reasons we saw the market teetering on Friday it's good to see though it's giving back some ground now but.
As a whole confidence because -- seen confidentially coming back in the of the financial system you've got the today.
City making money again people are you feeling a little bit better about investing here you know but yeah US investors and investors abroad and then suddenly.
Crisis of confidence something we can ill afford.
But you know what I mean considering and you -- JPMorgan had great numbers out.
We -- a market that's OK and he's holding on fairly well considering many people are saying that this is just blown out skies open.
That said is and you know you do need to pull back.
The wall if you on and let's let us see exactly you know what's going on there for all to see and you know thus far doesn't look you know a lot of the analysts and traders and maybe -- little -- -- is -- -- Wall -- They seem to think Goldman has a very good case it made they may lose in the court of public opinion.
But may ultimately win in court there but at what cost you can cost them.
Lots of cash in May call the future clients would you provide for the company that that says it doesn't trade against you but in essence and -- also calls.
Some of the Lloyd Blankfein or others their job.
We'll see Charlie Gasparino it was on -- -- this morning saying that he things within the next year or so.
We may see Lloyd Blankfein stepped down just for that alone for the public opinion PR.
Just to clean of -- They can go to God's work.
And that obviously was doing below that there are other ways to go walking in the fields of the -- as our left -- McDonald can help her blog.
As a great -- I -- we're gonna go do God's work and take a break and Robert keep bombing because it's.
Coming factory here a -- area yes thanks I -- That we had back Dow down just about eleven points and very close to fall below 111000.
Do -- -- come -- in fact that this outcome hi Tracy burns and Shapira hanging out today Chris -- is.
Feeling under the weather unfortunately market is down about ten Dow's down about ten points right now considering all that's been going on all of the talk and -- -- Goldman Sachs.
I think it could be a lot worse but -- and we also have strong earnings and this going to be strong earnings season -- certainly and -- -- that was city today although if you believe the numbers.
And yet there's that but we know JPMorgan had pretty.
Got a little mixed mixed message going on the market right now I -- tell me what -- I think I.
I -- -- plug in -- did catch my -- when I did the interview with Eddie George he's now he's on our talking on its website today foxbusiness.com.
And at the very top economics.
-- George for those who aren't familiar he's a Heisman Trophy winner he -- all kinds of football record when he played for the Tennessee Titans just amazing guy running back.
And -- I got to interview him and he talked very openly about something that football fans will not be happy about he absolutely believes there will be.
A player lockout in 2011 so he's expecting lockout and when eleven.
You know -- -- the contract is going to be done.
And why and I didn't say that -- well -- for a couple of reasons one that the the owners it is a business he talks.
Not favorably about the NFL he says things about the NFL not in a in a bad way he says look he got you just got to understand the reality.
It is a business they cannot afford each owner operates differently.
So they cannot afford to pay the players what they're paying them.
And so that needs to be brought in check of it he says that's what's gonna happen and when eleven an analog.
So they'll walk out because they will -- -- Paid what they thought they don't get locked out the owners are gonna say sorry guys and I think it was last time anybody on the floor -- -- time we had one of these it was in the ninety's.
Yeah and you get you get the you know.
Second string third string players that comment from Canada that and then -- and they basically -- -- with nothing.
They'll pay for nothing but keep in mind that the -- the owners according to Eddie George have all the control because they saw the TV contracts -- -- cash coming.
So what happens if I have a contacting me it -- me to pay for that contract expires that contract over.
I mean the players the kind of story they have individual contracts different story but is that this is that the -- -- -- salary capsule thing and I let it expired.
The but one other thing -- he talks about -- here's this great football player -- And he talks about how his career came to an anti figure to be with parades the whole thing.
You sit on -- couch waiting for an offer from another team which never came -- for the -- he does about how he recreated tough guys got an MBA from the Kellogg school.
He's no lightweight when it comes to business you gonna wanna watch this.
Well and that's on the web site on the web -- right now live by -- us it.
A has so I can tell you mine was totally it's totally frivolous but important nevertheless because if the headline reads and this just catches your -- Kids could overdose from Rick -- laced candy.
So initially I'm thinking you know back at skills in my house with nicotine on them well no that's not it.
But -- -- in 2009 RJ Reynolds.
Launched camel or Arabs.
-- Joe Camel was gone by the way but -- -- or -- camel or -- or does solvable nicotine.
Pellets flavored with cinnamon or mint.
The -- I guess I hope you.
-- that it right.
Say some really have parents that leave there camel forms out on the table and will Johnny comes buying takes a couple has that ever happened and Johnny Mac and I'm not feeling very good after that it has not and what they're saying is it has not it hasn't yet but -- -- it could and it can be very detrimental to care.
Hello Amir I could fall on the planet two and could be detrimental to kids as well but it hasn't happened yet in our lifetime.
But I had recklessness that that Clinton's record my mind that much more.
Because it's these blowout headlines and not you unfortunately I cannot forgive me I'm way Andy -- -- -- fourteen kids died from it routinely skills.
Not one if and when no one is -- -- I don't know any and it doesn't think the parents would have liked -- responsible enough to leave the -- -- -- -- is on the.
One would think but then again.
You know what I'm busy mother I get it completely you leave a -- out next thing -- -- kidding kidding I'm -- Rejecting his -- and DC before I get myself in trouble rich.
We're dog into how we're talking knives and -- -- -- -- appear you're talking taxes welcoming us we have all gonna.
It is it's kind of the next big thing here we're talking about Wall Street regulatory reform act in this congress and the president -- gonna have to figure out a way.
To close our budget deficits -- budget gaps as you remember the chairman Ben Bernanke came out last week -- that we be hitting our national debt.
That a 100% of GDP may be even more by the year twenty twice so we've got to do something congress is aware of it president's aware of -- question now is.
What are we going to do with former fed chair Paul Volcker who works with the administration as an advisor.
Almost floated the idea he said that the idea of a value added tax was not as toxic as it has once -- and then it.
Probably needs to be on the table going forward all of the administration is pushed back strongly just now saying that.
Is not being proposed by the administration or considered by the administration.
Than the question becomes how do you raise all that money and that's for the conversations all about here in Washington.
But the vat.
I think you would have legs if you were talking -- back in place.
The income tax that we have right now but we're not talking about that we're talking about.
The -- in addition to -- you know total cumbersome tax system we have right now.
Right and when you think about of that value added tax it's a complicated sales tax -- its.
All the way down the purchasing line in the end the consumer has to pay for -- it's really high sales tax and it's not exactly as blatant as an income tax when it comes out of your paycheck.
The problem there of course as you said Tracy becomes when you added on to the current income tax system so.
There are plenty of conservatives out there and a number of folks who do support the idea of -- consumption tax -- if it's just a consumption tax that we had not top.
Of an income tax that's the worst possible scenario for them.
There it is anybody talking about maybe some kind of what you just said just plain old simple consumption tax as opposed to -- that formula.
Yet you know the problem -- -- did you talking about it just a broad based overhaul of the tax system and we're so reliant on income tax is anything seen as a consumption tax.
You're going to get a lot of push back.
From the left what they call progressive taxes those that charge you more based on how much you make over regressive tax that's what.
That's what liberals Paula consumption based tax because it charges everyone the same percentage no matter what they -- So that's kind of a different direction in whatever -- would like to go I think the income tax system would certainly say.
And I don't think the consumption to actually gets anywhere on top of an income -- as you saw the senate and what's called a sense of the senate.
Vote that they took at the end of last week pretty much -- really have a binding power it just sends a signal from the senate that got more than eighty senators to jump on board say no way to of that.
And you know someone just wrote in and said adding in a carbon tax your potentially your sin taxes were still talking about tax on sugar and nicotine laced skills and whatever the heck else is out there so.
I don't know how this flies in public opinion I mean you're you know you're basically saying we need a -- -- everywhere every step you -- Have a rich -- you know -- what Volker.
When he proposed of that -- what he's saying is look America you can do this which got to pay for it and -- not gonna pay for it and you got to cut this that you wanted to.
And that essentially right just thrown it down on the table.
They did I -- he's just saying look if you want to consider waited to raise all this money I mean we have about 34 trillion dollars each year that we spend.
As a federal government that only goes up so if you wanna continue getting Social Security checks if you want to continue -- Medicare and Medicaid system the way that it currently operates.
We're gonna have to pay for the problem is what needs to be done.
By the two most politically unpopular things you -- do you the first is either raise taxes and probably a combination of raising taxes.
And cutting spending and cutting benefits for Americans so trying to accomplish both things at the same time politically is nearly impossible it's going to be tough.
-- -- zantop of this because this is looney tunes and if they start -- and my nicotine -- scandals.
-- sin City Hall.
I just need you know that bridge and then he -- nicotine scandals industry will certainly be out on the mall picked up.
Protest -- -- hey anybody else will be.
-- I think -- -- -- -- so much for joining us good series thanks guys.
Take it seriously everyone is saying on the boards flat flat tax flat tax flat tax well it certainly would make things that the bottom line is we have to pay for what we want if we're not going to raise taxes that we got to cut we -- -- -- -- -- and we're not that you belong in the wrong direction and not raise my taxes unless you commit to stop spending to -- -- -- I -- your Jersey get that tax billion that's done in New York with excellent it's huge.
-- it's it's awful you know city stay.
Counting everything federal everybody ready to ours just acting as.
-- I take a break right back.
Welcome back to Fox Business outcome might Tracy -- Adam Shapiro in for Chris cutter seek me out actually you have.
Helped with the karma Chris and I always say it's the karma that it's the market -- and here you are.
We -- almost two points shy of flat.
I thought it would it take her little eight points and run it and -- twelve movies.
And that engineer and I have a few issues with this message that is John Phillips executive producer at Yahoo! movies out in Los Angeles.
Because we are well old yeah you've seen movies in the east about the -- bond.
Maybe I'm weird science where where are these film series feel wears the earth -- I guys -- -- the the hundred movies to see before you die you know sort of an ominous title but I mean -- -- to get your priorities in line right it's sort of like it.
A popcorn bucket list of the -- of just the last twenty years.
A lot of love for the movies and -- -- Now the other that it doesn't -- in my time as well you know I'm a huge John Hughes fan and I you know but these things that this.
They're they're already even guys like movies that were four girls that John Hughes made them.
-- in this case though I mean we just start we started 1990 we had that we had a kind of simplified is because last year we did like an all time great.
And the all time great list didn't.
We we figured a lot of those movies had to kind of stand the test of time -- give a lot of love -- -- movies of there were more recess so that I we were determined to do added it says 99 -- and I.
Yeah yeah I went to the live shot and then not let -- -- a percent boogie nights I think was one of these underrated films that I thought -- Reynolds deserve the caveat or not but it was amazing you know Julianne Moore.
Incredible film -- you guys -- on what was the criteria did you throw a dart at a board or.
-- some some of deaths that that that must -- the -- way to do it but they united and we we had a whole room of of experts you know we had some film school grads we had you know different pop culture experts we had -- -- men and women alike and and there was a lot of opinions is the labor intensive.
Exercise here but by the labor of love -- this is one of our favorite editorial features on the side because that we.
-- when we really get to to kind of stretch our legs and in -- show awful we know about movies so it ends of being.
What we we tried to achieve is a really well balanced lists like these aren't going to be all your favorite movies.
These aren't going to be any -- these weren't necessarily all of any of our individual -- favorite movies but this is a list of movies you should see in some -- this is like you need to soak in a movie.
Maybe something like got spent sense elephant for me.
I saw one time very impact the movie but it's not something I really wanted to revisit is a very gives a -- cat tale told in a dark.
Well and the and the list is it there's some -- very happy to get those on the top clearly in misery.
I mean that haltingly she broke his ankles my brother and I say that we're gonna do that -- they get the light -- -- I -- let's walk down the I'll assume -- both Beauty and the Beast but why only come ion mom.
A while they had the it's you know it's its own little ecological statement -- -- nine and the in.
-- the sort of the first half that movie there there is no dialogue and that impact.
I you know I for one was completely captivated -- you watching this.
It's funny little robot screwed around you know this now this is for god forsaken planet and if you're case.
There was there was very intently from that very present and then of course you know I had its own commentary on how humans are -- however many years in the future -- I -- know the crazy floating of the convoy.
You've done voice over because I just hear it when I'm listening to it's like I'm I see myself in the movie theater either.
He was a man she was a woman together they were a man and a woman Cinemax presents you know did you ever did I got -- in the world would men and women.
Haven't felt a pop up you've done that before haven't you have you got.
You I've dabbled I've dabbled paper -- -- also on the list pulp fiction one of my favorites there's something about Mary.
Fight club I loved.
-- some good movies you forget actually that there were some great movies over the last twenty years.
So what's next what what's the next list that we're compiling because what a great job you have by the way.
Movies to get drunk -- the -- That's actually a great category none of them gonna put that -- you'll know -- because that's the fund category and there is what we're finding is that it's nearly limitless what we can do you know we're we're actually gonna get.
Extra kind of cerebral we're gonna do -- documentaries there's no one's really done that before going all that's kind of documentaries list because you know those of documentaries are becoming.
The stores are being told in that in a more cinematic fashion news not just about like stuff you might see in school.
You know that the directors are using in some some elements of.
Did give us his take on -- when you mention documentaries and -- talking about that cinematic you know story telling that was one from the sixties and it's called not the day after may be called the day after it's an English film.
About you know nuclear needed disaster and all -- and they used no special effects or anything in the thing it's frightening it's it's terrifying -- -- -- -- I actually I haven't seen that but to sell again they've -- -- you've started our list thank you didn't manually later on clutching it to just sit there.
-- -- -- We had time apple what do you think of the current movies that are out mean this whole 3-D trend that we -- continue with this is this where we're going as far as movies.
As long as people go and see and pay more money to do them then I assure you -- -- -- in case in point right.
The clash of the titans they've reworked -- they saw what avatar did.
Course Alice in Wonderland kind of followed suit you know people paying you know their Ford whatever to seven dollars extra.
And you know clash of the titans with reworked and six and six to eight weeks that just a little inflection of 3-D.
And you know so long as -- where they -- on the list we got a viewer wants to know -- to -- the list.
Well they should go to movies dot Yahoo.com.
It's it's it's all over the place there obviously it's it's one of our favorite features that were really kind of blow it out and if you should check it out printed -- on your fridge do your Netflix thing.
Tell you all these movies are worth -- -- Go see goodfellas person -- most John Phillips we love having -- come back with a new list any time.
I love it all right -- will executive producer of Yahoo! movies John Phillips that we act we really have ten seconds left the market is almost flat.
Thanks -- -- attention Janice my pleasure Chris cutter feel better for the vast.
Have a great day and.
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