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-- this is Cris -- were still here.
We're still here in the market is a little lower this morning down this afternoon now I guess officially this afternoon 39 points right now on the -- and it was one of those kind of crazy mornings where we got some good news mood for you know premarket futures went up and some bad news and as the market open futures went down and just sort of swimming around right now trying to find spot.
I kind of consumer confidence number actually falling a little disappointing in the whole thing and I think that's kind of what's -- in this market down because it went up it popped.
And then it fell off -- a -- again and I think people were expecting September to see you know yeah I will feel a little bit better and we're not.
The other thing too we had home price data from case -- before the market open and that's two months in arrears and -- console effective July -- I think -- markets are always forward looking.
But even though we kind of play off the data but when it's two months in arrears plus this housing data from the government is always volatile they go back and change -- all the time I don't -- people -- Put too much stock into it unless it's really bad or really good and it was a sort of in line with literally was expecting -- That's kind of the consumer confidence number two like if you look at the little charge here adore Britney who did it's it's kind of flat lining for -- so it didn't -- -- say it wasn't a precipitous drop but it's still it's flat -- so we're not.
Nothing on it and you and I talked let's just today it's all about jobs and the consumers now it is.
No they're not and that's what Friday all the -- jobs per ounce bat it's huge wouldn't talk about that later on in the shill.
What we're gonna talk about.
The save -- the FDIC situation with Peter Barnes -- join us from DC.
All we're gonna talk about we talk about the public option again coming up in health care even though.
Health -- sort of put on the back burner it's still there obviously we're gonna chat about that movement.
Kathleen day from the -- that's exactly -- right all talk about is it what what kind of regulations are coming out for the banks.
And will they help consumers or will they do things more confusing.
That's really the big thing today I mean obviously health -- is there when -- -- that's and that's me every -- but the FDA see and the position of banks right now.
Is a big deal don't forget you can follow us so it through email at -- live at foxbusiness.com on Twitter.
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Search for Fox Business -- -- you listen that really makes these ladies -- you lost easily.
On I'm not lost right now we're not we're about to be found because Robert Ray is here to get us up to date on everything that we got in talking about down news yesterday was about.
Called -- the some mergers and acquisitions -- and I don't like the inaudible and economic data out today tons of economic here it comes right and we're all -- Up to Friday you Ari mentioned job given the secret away but that's -- building up to -- -- anticipation this morning case Schiller comes out.
In it is -- July number but housing is fronts -- -- we've been following so closely.
Whether -- -- people feel like their home values have stopped falling we've seen that the trend continuing to be it's getting a little bit better.
Vs a year ago well it's still declining but it's the month -- -- -- -- incremental.
Increase -- basically off the bottom if you will.
Dale vs here with a look at 13% drop for the ten city the ten biggest cities of twenty city.
It the -- captures more cities obviously it's down thirteen point 3% both slightly better.
That expectation this when he.
Break it down to the month by month things look a little bit better -- eighteen out of twenty metro areas.
Getting better on a month over month basis or come -- July vs June prices.
So they are getting back we're back at the autumn 2003 levels that you -- before then -- probably feeling better since then.
Maybe not because of both indexes down by a third from their record highs that was back in the second quarter 2006 they were.
You're still down a lot from the high but most markets are getting better the one big exception the glaring exceptions Las Vegas -- hitting new low.
The Las Vegas here we know they ever built up there we know it's been tough economic times there they're continuing to see that home prices devalued -- so that is one market to watch out for.
Cleveland of it is to me as interest in Cleveland Dallas and Denver now are getting back.
Close to where they were a year ago -- -- the three strongest markets if you Harden or yeah.
I guess that's the question that's a part of it is is how regional is that -- -- how much is Las Vegas and Florida still out in Southern California.
Dragging everything down -- -- well and how much are we -- certain pockets like northern Ohio.
Like Michigan these areas where it is Allison who never really held up well cut compared to the rest of the nation that you didn't see quite as much.
Is -- some of those homes did appreciate it's much in some markets like Cleveland vs you know they have served southern Florida so it is such as it is all local.
We had a guest on the other day was talking about how there's different blows all over the country so it's not like it's not across the board -- we can't say that.
What are the areas actually we were talking on Saturday -- your questions your money that.
Today new York New Jersey area hadn't even come close to its bottom yet weeping impervious for the most part in this area that I had prices probably still have a ways to go.
Whereas like you said Vegas probably hitting bottom Miami probably pretty close those areas like fat.
-- -- -- -- -- it interesting market you talk to it to realtors and -- -- the international.
Investor has helped keep that price -- -- -- coming in if you're using euros.
Everything's on sale we know right now the dollar hit me a pretty much record low prices so you're coming in using other currencies from -- -- country.
You know if you -- -- do you know of outpost in New York you know some people are coming NN have heard that from.
On the high end doesn't help -- the average home necessarily but it certainly puts a floor under part of the.
That's Miami I mean pick up but that's Miami that's -- -- money in Miami that's buying is all from overseas it's not even.
Americans going and buying vacation homes yet we're not there -- it's still overseas money down.
And that's part of the consumer confidence story to you talked about it.
You know it's a setback you know is it fell back from where it was August that was lower than expected we should -- August was revised higher so.
That's nice because a lot of the revisions we've seen the past six months have been lower so good to see a higher revision there but it comes in lower the expectations index slightly lower.
But it's all about jobs that -- and the folks saying -- jobs are hard to get jobs are plentiful.
They have their secure about the job all those numbers declining in September from August to really people still concerned about the job and that's.
What you see consumer spending and consumer confidence we know -- there's generally a divergence now you know they don't go hand in hand -- amusement confident does that mean they're going to buy.
But real quick just curiously looking through the the details -- -- -- major plant is what you're planning to buy you you look at.
TV sets down and a football seasons kicked off last that was a spike but.
A look back to last September -- down quite a bit.
The one thing that really struck me though and and it's not good if you your may be in the carpeting business the -- plans to buy carpets and enough carpets are out this year Tracy or what but.
Two points out if they know Robert Karlsson so yes people are getting rods are not going wall to wall I guess you know Palin and god that you cut some -- -- Nice to see Jackie and tell him that -- -- it.
A foot that's demean it and I mean it's just everything you look at the plans to buy here and almost every major appliance cards everything.
Down I mean -- cards cash for clunkers hurt her -- -- look at refrigerators.
Vacuum cleaners united on TV sets down quite a bit wants to act if you don't have a carpet -- you have carpeting why would you need -- -- -- -- I guess they got out of hand.
Well but that doesn't help you think about -- -- Home -- that's exactly well yeah it is music -- I was thinking Home Depot Lowe's all -- you know Mohawk Industries and in because only down.
Home builder and -- -- -- other pain and updated carpet as well the way you know thanks -- -- -- Robert -- I getting us the lowdown on all the -- today back in -- I don't see you vaccinate consistency.
Let's -- out right now to Paul Nolte director of investments at Hinsdale associates Paul all looks let me get your thought on really two big pieces of economic data that Robert was talking about -- first of wall.
The the home price index in case -- and the consumer confidence report what did you make of that this morning when they came out.
The Case Shiller Index Nick Cannon confirms what we're seeing across the country that the housing is definitely regional.
But generally not that terrific the low end of the market we're seeing a little bit of pick up and that's courtesy of the government funding of 8000 dollars for new homebuyers.
The consumer confidence numbers not a surprise to us because when you take a look and retail sales -- you look at what the consumers actually doing.
There are keeping their hands in their pockets they're not spending so the consumer confidence number to us.
One of the lesser indicators.
But I'd prefer to take a look what the consumers actually doing vs what that are what are saying they're gonna do.
Yes see I'm with you and we've been talking about this it's all about what you know is the consumer gonna get out there and buy anything and that's where you start to get your top line growth.
We got some negative economic data -- so it doesn't bode well really for going forward and you mentioned -- Flying back down again.
I I don't know -- come flying back down again but I think we're certainly well ahead of the economy at this point one of the concerns and what we're starting to hear about the third and -- -- are -- some of the fourth quarter earnings.
Is not so much earnings but top line growth and something that we've talked about for the last six months it's nice that they're making earnings estimates but they're doing -- on cost cutting which is temporary.
Would really like to see sales pick up and that would indicate to us that the recovery -- more permanent so we don't see the recovery is being permanent at this point it's still somewhat fleeting.
-- also somewhat government enhanced and we're not quite sure what's gonna happen once the government decides to.
Think the I -- out of the patient if they're gonna recover on their own or -- they rip will relapse.
-- -- I was noticing today Walgreen their earnings they beat on both top and bottom line.
Are you a little skeptical about expectations now heading into third quarter earnings season the fact that.
Expectations for even top line revenue growth are so low that some of these some firms are going to be beating up on them both top and bottom this quarter.
It's gonna depend again on on what -- that's -- much expectations but what are the actual numbers you know rim was a perfect example last week they missed on both.
I'm not as concerned about expectations as I am about are they actually increasing sales vs a year ago.
Or -- sales going down than expectations we can beat.
Very poor expectations very easily.
But I'd like to see absolute growth in the in the revenue numbers.
They lower the bar fine if anybody -- jump over it you said that you would consider taking money off the table S&P but if the S&P 500 was around 1020 how come -- your magic number.
That really is is the uptrend from the July lows.
So really it's nothing more than just trying to stay with the trend of the market we've thought for a long time in the markets expensive and it continues to -- to go higher.
So we'll ride the train as long as it's moving but when it stops and in starts to head back and reversed.
Is when we wanna pull -- that at least at this point.
Marks that trend from July 2 today.
What do you make about the deals we saw yesterday I know.
Again it's still a trickle of -- -- -- activity but at least it's something Xerox Abbott labs you still have -- situation with Kraft.
-- you view this as a positive in terms of confidence if nothing else.
By a positive maybe for those few companies that are involved.
Again the buyers need to have the cash available I don't know if they're going to be able to get the loans to to make the deal go through.
And in some cases we look at it more as a problem for the buying company.
Because they're struggling to make top line growth so they're looking to expand their business.
And one way to do it obviously is through mergers so we may see some more merger activity.
We'll have to see how they're able to reconcile the businesses and if they're actually able to enhance the businesses.
That they're buying.
Pump up viewer wrote in TJ Thompson in 2010.
How do you see recovery at all the jobs are still being lost that's not a recovery.
So I guess that's a big question for everybody you know we we hear these walking Talking Heads saying that we're -- you know we're coming out of it.
And that walking talking that I've met Ben Bernanke.
That you know he said we're coming out of it and things are getting better but people are still losing jobs the jobs number on Friday could be a big disappointment.
How can we call that a recovery.
-- we call it does statistical recovery and it's not really recovery and that's one of the issues that we're having with the equity markets they diverged pretty dramatically we think from the economy.
Tom what we're seeing is a stimulus based recovery and not one that we believe a sustainable.
So we've seen economic recovery probably in the one maybe 2% GDP growth but that may be as good as it gets.
We still have an awful lot of debt overhang both on the -- on the banking side.
As well as on the individual side on the consumer side.
Until that gets taken care of it's going to be very difficult for spending to really row.
Much beyond what we have already seen and really -- -- as we mentioned before the consumers get their hands in their pocket they're really pulling back and that hasn't changed much.
Paul noticing -- all lot of sector rotation in and out particularly over the last goalies -- got to go sideways here.
But -- that this coming out of the banks going back into the banks going into cyclicals.
As a -- set do you particularly like right now.
We've been very favorable to technology and it's been very rewarding.
More certain to move a little bit of money out of the technology area we're starting to favor some of the health care areas.
Some other dude defensive areas -- a perfect example if you look at the the tape.
Technology -- are down health care issues generally flat to up a little bit.
And every time that we've had -- selloff in the markets.
That's really been the rotation investors go to the more defensive names.
When we get the big rallies -- we've had yesterday they go to the more high beta names the technology in some of the financials.
So if we're looking at a pullback in the marketplace or -- flat market.
Over the next couple months we do want to be in the more defensive names like health care in the consumer stocks.
Well real quick because we have to -- you just sit you in your notes and that you thought treasurys were still hot that overseas are still looking at our debt is I mean that's that's a good thing can we sustain that.
A big question really don't know but his -- and again it is that the treasury market is making -- Different economic called in the equity market if you look at the treasury market the treasury market is basically saying.
That the economic recovery is not going to be sustainable and so they're willing to accept one to 2%.
Interest rates on uncertain and paper that's when I get as far as its days.
Absolutely thank you so much -- Think you.
And now we jump down to the the master of Walt lawmakers.
Have IRS data last -- What's gone on down there today it's quiet day vanity -- Lawmakers.
That the path that you read about it he read more in the -- You want me elected I will not serve out yet -- -- both -- Sunday Peter.
Hey guys we got this confirmation today of this FDIC plan to shore up its deposit insurance fund they FDIC.
Asking the banks to pony up 45 billion dollars.
Two by prepaying.
Basically the next three years worth -- premiums that they would go anyway.
-- to the deposit and sure it's fun this is a cash flow issue as you know the FDIC -- had to take over a 120 banks.
So far in this financial crisis between this year than last year and this year the deposit insurance fund.
Then which was about fifty billion before the crisis began is now down to ten billion.
So they have to replenish -- they have 400 banks on their watch list their problem bank watch list not all those will fail.
But they expect more failures.
In the months ahead before.
The economy starts to recover and the banks are are fully.
Stable here so today.
The there's a thirty day comment period but at the end of that that period -- -- he is going to go forward of this.
And the banking industry today.
Signing off on this on this proposal ready to do it says that hey -- you know we got over a trillion dollars in cash out there we can afford to.
-- three 45 billion.
Not a problem and the FDIC is leaving the door open if it should need more money beyond that to borrowing on its treasury credit line.
Which is that I currently -- a hundred billion but could be on an emergency basis -- or the 500 billion so.
That's the latest.
Peter real quick is this a case where all -- this is it before going to the banks I mean this is not the first time -- -- -- he has gone back and said a special assessment.
Is this going to be it if they need any more one more dollar.
They'll use the -- treasury facility.
Yes that there there and we ask the question we asked the other aspect questioned the staff we ask that question the chairman Bair.
They say that they believe all that this.
45 billion will cover expected losses expected.
Insurance to cover these deposits.
That if necessary they will look at capping that -- credit line.
-- -- -- the door open thanks Peter we appreciate it OK okay guys thank you -- give us the lowdown on the FDIC I'm pretty conversation.
Course I know the answer that question but I just want dialogue here between Peter and -- you and I you know that's what we -- on the.
At about anything but it's unfortunate that I I up again -- become this.
Pessimistic skeptic but I don't believe -- I think that comes out of Washington and no I don't either sell you know what it remains to be seeing you just hope and pray that that will be enough and certainly for the banks that they won't go to the banks for another dollar the company next Kathleen day is gonna jealous about that she's in the center responsible lending -- -- -- -- -- -- -- -- -- here.
-- about the foxbusiness.com.
Live Cotter and burns we were just in DC talking to a Barnes.
-- -- here bonds go back out to DC right now Kathleen day joins us from the Center for Responsible Lending Kathleen welcome the show that -- Thank you.
All right now yesterday Peter had a couple of really big stacks of paper this was and one of them was the the Barney Frank both proposal for the creation of this consumer financial protection agency.
You obviously support the yes we do absolutely but why why is this 100% necessary -- Well all it's gonna do is consolidate.
Authority that's already out there but it has not been used which is why we ended up with a sub prime mortgage crisis why.
I credit card policies got -- -- hand an overdraft practices are making people hopping mad.
You need the current bank regulators spelled on the job they they face they fell -- they didn't.
Take into consideration consumer protections.
And what's happened is if you if you ignore consumer protections you're really undermine undermining the engine of the community of the young economy.
Individual's account for seven out of every ten dollar spending economy -- you can't -- people on the overdraft fees alone seven -- tens of billions about a year go to these.
Overdraft -- Be money better spent on unproductive goods and services -- even on savings for retirement I mean.
It's just it's not if it's not a good thing for the economy when you have all these abusive.
Predatory financial -- OK I want to get to that a bit but first the ball.
Who's to say that this new regulatory agency will succeed where the others failed in the -- Well couple things first of all everyone will have to be governed by -- we know more regulatory shopping right now.
Banks FDIC insured institutions who go around shopping for the most lenient regulated the way teenager -- -- -- place parents off each other -- let them.
I take the power and drive drunk -- which is the equivalent in this case.
What you have is one place where everyone would have to -- all financial service products would be.
Regulated supervised equally and you this it would be an agency that could actually if it's done correctly and actually has some -- Could nip problems in the but when there is irresponsible practices that.
Are obviously going to cause problems down the -- we end.
It would allow states.
Once again -- would restore the power of states to go in and also protect their citizens when they see something cropping up and not just have to wait for the -- from Washington.
This -- arsenic a cold rallying the people that already exist sounds to me like there's no way we were not going to create more layers.
And again -- I come back to my.
Auditing days sarbanes Oxley the first thing that comes to mind we tried to fix -- problem behind the eight ball regulation was created after.
The events happened and created more of -- -- and I don't know that it except I didn't -- that.
-- I think I pleaded not consolidating thing I know I -- -- I agree with you but it was just more regulation created.
To fix a problem that happened already and I worry that we're working behind the people here.
Did some good things from that.
Legislation but that's a different topic on this one you're taking what is already scattered through several agencies and the 'cause there was this regulatory arbitrage people shopping for the most lenient parents.
People went easy on that portion consumer protections took a backseat.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know I mean it really you need someone to say hello guys let's take the keys away when.
It is summer driving.
But you need the government to do that where does the responsibility fall on people like Chris and I -- go and get loans and take out credit -- And if I -- overdraft -- thank you and he protected you can't be protected from someone preying on -- -- -- and they purposely mislead you they don't look even the former secretary of hot when he came here and and bought a house.
Under the bush -- he said you know I'm a lawyer I -- hot I don't understand everything I signed.
Look I I haven't and yes I am I have the -- I don't understand it every document I -- I have to quit my job and do nothing but read my phone bill my cable bill.
My -- my credit card -- don't have time you shouldn't have to sit there and going with a suit of armor and a little too ready to battle you should have something should be some presumption that there's a certain level playing field and I'm not come if they artists involved in something that your -- yeah -- the by an aquarius and -- and and hit the blows -- -- -- as well you should have figured that out anticipated that.
Yeah regulations that we -- regulations and people final polls around them and so all we're doing is just creating more ways for this and -- I that's -- this is there.
They said you know -- -- is going to be something dedicated to something so when loopholes are found that are inappropriate he can get them in the by.
And it -- the power to -- -- you know picking State's attorney at state attorneys general who can raise their hand and say.
I hope we see something bad can you have more cops on the beat it's not -- wolf it's more oversight it's making sure people aren't running red white that's what it's akin to not put up what might.
It's deadly let me ask you this though I certainly understand.
About misleading language.
The ability of banks changing in mid stream it'll go the way that their policies and this and that but -- I don't understand.
The overdraft fees that you speak of on determining what's fair and what's not fair based on how much it cost the bank and it shouldn't see there's nothing confusing about overdraft fees if you overdraft.
Oh yeah yeah like let's listen if you do -- you're charged defeat period there and I think you don't think we'll let you have got the what -- thought I'd ask you go get a hotel room.
Yeah do you know that they'll block off more than what you're actually paying for -- People that.
If you musical act like all the rabbit.
But -- do you think I don't know that I -- -- I was on it was either CNN here.
It's part of that's another that's a bad person without problems and really they do that -- -- and not everyone knows that not and I think you go and you and also the most people don't know that the banks have software that actually.
-- Back your purchases to maximize the number of overdraft charges they conspired that's ridiculous -- -- -- about -- really isn't just because someone didn't read the fine print so you know cancer is.
Don't you find rich really big bowl -- sending -- like hey how can I think every time yeah and now at.
Yet that's not an answer all the time it should not be an answer so if I put a big sign and he's saying I'm that it you know -- if I disclosed yet I'm gonna punch in the -- -- -- the bases that make it all right they did it.
That's like something yeah obviously people have to take responsibility -- but these are abusive products.
Which I there's just no excuse.
It obviously if you know -- in a hundred out here how you -- how was about to check but you said and you better get a hamburger.
And you didn't realize that when you bought my eyes with a gas they put a hold on for 5060 dollars your student your elderly person -- fixed income and you go and you buy I have -- -- and it it it bears no relationship to the cost that the bank -- -- to -- -- but then I zero I can't the banks why can't LA say.
Why not why should -- automatically and all you.
Why not have.
Why why is that why is that are relevant here Kathleen if I'm producing a widget.
Why should I have to sell that widget for an amount that is -- only a simple only give me a certain margin.
Why symbol Leo it's up that's up to the free market to determine what margin I should be able to get -- allegedly not -- I -- love it -- Most of all is -- -- -- whoever wants you have once you have FDIC insurance taxpayers are on the line.
And they need someone who will -- at the table on behalf of consumers and taxpayers it's not completely free market once you had FDAC insurance.
-- something to that system you have said these are pocketbook issues that are so essential that people it's not just like making a -- -- and it's gonna cost livelihood it's gonna cost the consumer more money that was in the Longman.
Now -- -- brought it -- streamline it and well you can't possibly -- -- be more expensive than the current bail out.
I for one.
At Rick I don't want him at paper that's my grandchildren gonna be paying for this and so are you or your -- -- -- I would rather nipping things in the -- to begin with.
That is efficient he would streamline things make it more efficient and stop these things before they get out of.
To the problem with this is that they allowed you can't possibly lacrosse final witness Kathleen is these credit companies banks credit card companies -- case may be.
They're going to supply less pro yet because it's going to be more expensive for them to supply this credit and that -- event.
Do no light at the toilet and I can't do that credit -- it irresponsible lending had dried up credit you're actually gonna have responsible credit once they start and -- but I have that -- this story Kathleen I mean I get that the banks handed out money and myself got its first credit application when he was too.
I get that that's just wrong but at the same time that back but at the same time.
It is up to need to know that I have had cats and that limit I have a balance due every month if I don't.
The god does not and yeah now and I know your credit card companies credit card companies have been changing the due date if you don't get it in I I had -- my aunt -- -- they said that I paid they tried to dean you live in may be because they paid early I paid before 3 o'clock gonna -- day.
I mean isn't what they remove it right away they it didn't.
You shouldn't have to jump on one -- while patting your hat and -- your stomach.
To figure out when your beauty is a lot of people -- didn't change -- -- you know why they changed I did he -- what they think.
A week leading -- but we gave you completely different beginning collision insurance -- insurance on my credit enhancement act differently -- the benefit we give you policies we give you one benefit but he -- to take another way how thick client less credit is gonna come to the consumer and that's the last thing now I -- -- I predict that -- yeah.
If you are speaking on behalf of the industry would tell -- Did exactly the argument -- sub prime lenders used for fourteen years to keep the Federal Reserve from writing the rules they should have written fourteen years ago which would have saved taxpayers in this country trillions of dollars while I'm I've -- and I have no idea.
Let's -- into sub continent yeah.
Fact that not scared -- this -- -- created for specific reason I was one of them.
I would have never -- -- a -- house from my three children when I got separated if it weren't for the sub prime market is created for teachers and veterans and people like myself.
And unfortunately it was have you -- want to tell you why didn't hurt me and it was abuse it was abuse and you know what all the abuses.
They were brought to everyone's attention years and years ago you know at the excuses.
All my gosh you can't put in protections for consumers.
What's the sub prime market became subverted by people who were really bad -- bad subprime.
It didn't begin as a bad thing you -- right that.
Became a bad thing -- instead of letting that regulators do their jobs and say this is not good very bad for consumers but eventually it will to appeal the economy which -- did.
Instead it was an all my goodness now you're gonna drive credit drive credit it was the same scare tactic that it's the same -- industries using -- this will not eat in the drive credit.
Kathleen -- Jack this was fun.
I had a -- yeah it's deadly.
I -- -- Kathleen thank you very much Kathleen day from the center for responsible and we'll see you next time we have to have her on again.
All -- that we think that was out stand -- I am I'm I.
That the question is.
I don't think from you from our perspective -- the question is whether we need to have this agency I.
And I think this agency will be good it's just how.
The cool they report to is -- important you know in in also.
How much power do they have to determine like I said how much of bank charges for this -- that for me I believe as long as it's in plain English.
Then I believe that the consumers should say this bank out like that overdraft fees too much I wanna go to this think they should have the ability to do that the government shouldn't tell every bank.
That's an unfair -- you need to lower that -- because if you're telling the bank how to.
How -- price risk is basically what you're doing the bank will withdraw in bold to say you know what and that's not price sign up and -- can often accurate.
That's what I'm saying we're gonna have less credit out there and one of our viewers wrote in the seventh worst word you want to hear is hi I'm from the government here to help Ronald Reagan said it.
Not read the comments nobody thinks this is a good idea and -- avenues that are Smart.
And they don't think he's a good idea either get more government regulation more -- more everything it just me -- -- So are you saying you don't want this agency which you want the -- whoever it is.
Two did do a better job is that what you're saying better regulation not more regulation.
I really just think just right out nicely and BP -- like today we got this little teaching.
-- get a -- with your credit card statement get a teaching with your bank means everything -- that was used by.
Mark my kids use flash carts.
That she'd -- by the -- is huge into the mountains -- actually I'll reiterate it and you can email us at -- live at foxbusiness.com.
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And we are also available on Hulu.
Because we should -- that you know will do do it a little weekly roundup attack yet don't forget you can -- here any time as well on -- foxbusiness.com.
Live get into the conversation we're going to be with you every day as we have been.
We haven't but we've been here on Fox Business Network with you every day.
Over the last few months and we continue do that.
Welcome back to -- -- on about 32 points right now -- -- day yesterday rebounds in the last three days of last week -- -- but we have some stocks particularly they gave us some earnings earlier in the day that are doing pretty well right now.
We should caveat yes and I say -- I was really the good of the lowest -- -- July 10 -- -- final blow off of the Jewish holidays so that was that was part that we Saturday actually with.
Earnings from two companies.
Walgreens one of them.
-- cost closes doors not opening new stores like hold back on their whole you know let's get it up their policies and came in with some decent numbers.
They just sort of surprisingly he -- you probably -- gestures in the as much as I as a mother of three and that's certainly we hadn't really you know.
And the best is now I can get -- could and you can liking LP the beats talent that you really not a you know get a -- so I.
I -- -- who have it's night you know last last resort that kids need something in an area I've tried water juice and all that got to get milk.
Making it each stallion get you know on top of your medication on that so it's become like this little one stop shop around.
This city tread water and juice in serial.
What's the matter with you.
I can only do milk and cereal that's -- fact tried to eatery interior I can't believe her kids and their magic kids.
Gatorade and a serial.
-- -- -- I mean knows the electoral lights -- the -- better -- with no but let's also talk about how we get into it and it will click on -- -- -- most of the law obviously be on the top line now earlier in the show that we had Paul -- join us and he said look.
My concern with expectations right now.
Beating expectations even if you do on the top line doesn't really concern me that much it's really year over year comparisons and you're still down.
Pretty significantly year over year but.
Hey if you -- on the top line that's been where the issue has been less of -- -- The year is relatively pathetic because it was so bad -- quarter fourth quarter even more so.
Gannett newspaper publisher also moving today this is the parent of USA today again this is a little bit of -- amazement to me.
Newspapers doing OK but when the bars very low but fortunately an occasion you can beat it.
We also had Mead Johnson Nutrition shares -- up over 7% actually they announced that they were.
One other sites.
For powder blending packaging facility was selected and they had this new facility coming up so they're they're doing a lot of things with that the big one today CIT shares.
About little merger with indymac CIT shares on fire those those stock though has been down.
Pursued the season and that's not let this -- 10% bump clout helped by the stock has fun.
But we have some movers today considering we're down thirty points and will continue to have more to.
Earnings are starting and we'll start to see more and more that but really pay attention of the numbers you wanna be looking for that top line growth and that's -- not.
All right that's a look at the market again down twenty about 29 points right now on the -- -- to -- taking a little bit of a breather but also just have to wrap this up when nothing Paulson -- in the show is.
Anytime particularly in certain sectors like tech we see a pull back.
He's jumping in I think that's it's becoming more and more of a common theme the pull back the last three days of last week Monday get a -- -- activity.
Perfect excuse me jump in and buy a little bit a stock and that's what we've seen some money on the sideline going to work.
-- right when what you thought about healthcare -- -- we didn't yesterday about having that health care when we do that doctor Margaret looked -- and joins us right now medical director of synergy health here in studio -- Michelle -- -- Right now where do we stand because -- over the last abilities we haven't talked much about health -- although it seems to that reared its ugly head a little bit today.
Where do we stand with this are we any closer -- in your -- getting anything done to getting some sort of consensus.
To one particular package that'll work for everybody involved.
I think the public and is absolutely essential.
And that's in his what they're talking about today public option the public option definitely why do you see that as -- essential.
You don't buy it by its very nature the commercial major medical suppliers have to look might mainly short term.
They -- short term profits to the quarterly report their shareholders to Wall Street the public plan.
By its nature has to look at the long term not just a short term it has to invest a lot more -- primary care preventive care.
In order to make long term cost feasible yeah the commercial carriers really are not tied -- that.
At the same time though.
I've never seen a government agency that is driven by it and profit by having to make a profit whether its quarterly.
Annually ten year profit forecast whatever the case may be it doesn't matter lose money would just pour more government money into it.
Isn't that the -- what the public option that we'll end up costing so much more than we think it's going to cost right now and it doesn't matter whether it's you know eat it fit right in being profitable just breaking even.
Well it's supposed to be self supporting it supposed to be and if that they look at -- that that I look for Social Security to be self supporting as well.
Well if this isn't the commercial carriers are gonna win the game with a baucus plan doesn't include a public option when I checked.
But I guess the question again comes down to what we were just talking about with the FDIC.
Do we need the government in our health care do we need the government making decisions you know part of baucus plan is that no one can be denied coverage.
-- This is under Obama's -- you know forcing everyone to have some sort of coverage.
If this right or is this again what Ronald Reagan said I am from the government I'm here to help -- went to -- want that in my living room every day.
You have to have everyone coverage.
Because without that those who are reasonably well.
I had been put off buying insurance until they start getting sick says that the pool of money in any insurance plan -- that kind.
Is going to be top loaded with a very sick people.
It isn't again.
My problem I wanna pay more if I want awaits on the hill and unfortunately I'm gonna have to god forbid we -- after that.
Mortgage the house do things like that because I didn't have insurance is my problem but it is that you may not get insurance at that point and it and it might have a right.
If that -- all of our problem because not going to be turned the way that -- that's the whole point is that he is and that's it.
Your kids you think we're gonna say now you don't have insurance we're gonna take carrier we -- eliminated Medicare for all that.
The -- that's not working either the way to.
Isn't -- back to -- I don't understand what we're not trying to fix that first.
Before we dive -- and take on all this these new big very expensive projects -- not actually have.
Because a lot of people who are being enrolled now in Medicaid.
Are those who have landed in the hospital with no money no insurance and they're being enrolled at that time in some way to -- reimburse hospitals.
For their expenditures but -- -- it doesn't really cover.
10% of your health care premium goes to covering the uninsured and we're already paying for those people.
And I think it's time to really share the benefits as well as sharing the pain.
We talk a lot about insurance private public.
I don't think we talked enough about the practice itself.
During this whole entire process both from a preventative standpoint what we're doing to stay healthy becoming healthier nation.
And -- -- what the doctors are doing in terms of you know maybe providing service that isn't 100% necessary -- I recently went to the doctor.
And I just got all these tests for things that -- completely unnecessary -- test.
You know had a cough and I got as the test and I got a bill later for it it just seems to me when I was.
Sorry because well -- -- in -- -- never caught by I I had a club quite a cold the love of god I did not have asthma but -- you know me.
Really expensive test to tell me I didn't have -- Well here intelligent guy when you say like -- -- this test -- in the I didn't realize what was going on you know -- -- a -- why do you live at.
-- when I guess.
Have to make that decision mean is that it if they ask you do you want to have a -- you know an angiogram.
You want to have this do you wanna have that.
How why -- whether I want to have that -- need that.
I think he could ask if the package does it without your permission that's assault and battery.
I never thought I think.
I think from both sides of the table -- abuse and one and yes we have a lot of doctors that requiring -- putting things through just to get paid out by insurance.
And the other hand we have a lot of patients.
Unlike Chris who -- all the tests done I want to head to -- make sure there's nothing wrong with me want to think -- meant to you name it -- it -- walk out of there -- no that I have a clean bill help.
So we have abuse going on on both sides but again should not full on my lap if I want all those tests.
I want to be tested for asthma and you know.
Hanging -- -- that's my problem my bill.
OK that I think it's a dialogue between you -- your primary care doctor.
And that's what's really vital.
They have a long lasting relationship with that doctor says that number one you can really concentrate on prevention.
And every -- that you got an open and a conversation we can say why don't need that or doctor do you think that maybe second -- would be useful.
Yeah that's it that that to -- -- to win that's very time consuming and very expensive but long term it's save a lot of money.
Do we need to concentrate more on prevention the -- outside of a conversation with a doctor is an education in schools.
It's got to start at the family level and enhances that would diet has a solid exercise access -- you know.
The -- lifestyle need.
As a nation we're we're getting fatter it's a fact I mean we -- we are so obese what is in the third.
But we're a third of a third of us are obese and -- the most obese nation in the world isn't that true absolutely so what how was this possible.
We should have the best health you know we should have the best food -- eat here in the United States and we don't we don't take care of ourselves how we change that mindset.
Well I think prevention is actually at the center of -- health care.
And that's why again I think that a public option that looks at the long term costs and benefits and takes into consideration the fact that.
It's -- -- costs may be higher because of prevention.
Mean I think that that part of the health care plan is key and that will compete with the insurance company that's not in the bill -- no prevention talking in the select reading -- -- Well I bet you don't -- Really decent scrap Peter Barnes came on with those stocks those -- trees that were killed yesterday in the woods and woods who unfortunately but they shot out of -- I don't know how to write that up and preventing an editorial reform and fix Medicare and Medicaid there and that but had -- right after the show prevention are that.
But in the law.
How do you -- that -- you can't write -- mentioned a lot you can provide funding for example.
There is a clinic in the South Bronx.
Pediatric clinic -- -- of that pediatric clinic.
Took a small grant and while these -- -- -- sitting in the waiting room for hours waiting for their children to be seen as set up nutrition classes he -- at the small kitchen.
He has women participating in in producing healthy.
Inexpensive -- she's.
Teaching about healthy snacks mean from her grant is for children from zero to 36 months so yeah I think that's part of what a public plan this.
All right really quickly.
Bob in Nebraska you -- he writes how do you know they have those tests where unnecessary maybe they suspected something.
Maybe they thought it was yeah.
Say Iraq today you'll have a right wing like like I said what do lineup Unita -- with a yeah I might add as much you can grow and asthma and anything might happen.
I know I don't I that they quick break when it continues talk about the public option with -- rich Edson he joins us from DC.
Coming up next here -- second sees Christmas as it.
-- you know one of them.
Hey welcome back at the end I'm gonna head down -- -- -- -- in in DC also reading pages and me.
And document more public option and stuff.
And and listening to hours and hours of debate so it's not my office is the hot spot and if the -- -- savior right now I -- it.
You know right now senators are debating -- the finance committee whether to include a public option to the only bill that does not have a public option Senate Finance Committee bill.
Before they break for lunch we're going to get a public option vote after lunch were supposed to get another public option though there to two bills right now.
That would add a public option on -- this.
-- -- Republicans get -- to offer their amendments that's who we sit right now on the Senate Finance Committee remember the four other bills.
All contain a public option.
-- -- Anything any idea on timing of this I mean look I get.
I hate to sound you know.
Press a little bit on this but obviously I can't believe we're still -- -- you know every day it's almost like what's new today hey the public option team back up -- -- up.
Is there we know what people are talking about -- this and that we -- I was inching our way toward.
One bill however think it might be that we can all look at and say yes networks are we know -- -- close and where we can go two weeks ago.
You -- man that so they call it sausage making every time -- they get together try to write a bill like this mean they're looking to overhaul.
The health care system so it's moving it is moving it's moving incrementally toward a conclusion whether it's a conclusion that results in changing the health care system what -- just goes away.
And dice and so what you have here is the house standing by.
Waiting some want to see what the senate is doing they want to make sure.
That House Speaker Nancy Pelosi does it make some of her more conservative vulnerable Democrats put up a more difficult vote.
For absolutely no reason assistants into looking right now to see what the Senate's going to do the Senate Finance Committee -- this week or probably maybe even into next week.
We'll finally produce its bill they'll merge that with the health committee bill and then they'll vote on the senate floor and they'll try to.
Somehow find a way to get sixty votes to pass this that after that.
The house is gonna merge its bills together and try to get something -- but we're definitely moving into October on this one now.
Yeah but you know.
With all due respect to them because I know they can't find their way to the bathroom some of them down there let them take their time.
If they truly are trying to overhaul the entire system.
It's needed project you know I mean yeah you know they should take their time to -- -- Valentine's Day present let's just do it right and that's the part that bothers me rich is that.
It's a mad dash to finish this quickly because Obama -- -- I mean.
Of course he wanted it done in August so here we are but.
What I don't understand the -- understand why we got to push this through so -- I think the rush especially for the administration as you look at the poll numbers and and the president was almost a profit on this one beforehand he -- we don't get this done quickly the longer these proposals are out there.
The more people are going to hate it because it's easier to kill legislation -- it is to pass legislation it's so easy to get an early down the tracks because there's so much you can point out true or not.
Ought to get people not to like this proposal much -- any proposal.
And so that's what's -- you look at the latest Rasmussen Reports 41%.
Support the Democrats initiatives 56%.
Oppose the Democrats initiatives you can only imagine.
Idealists and the president's gonna get worse from here.
-- -- Thanks -- we appreciate Richardson in DC keeping -- up to -- and I'm sure we'll talk with you on the same subject probably tomorrow and I think after I forget to set but somebody described it as if -- fish out of water the longer it sits there the more it stinks.
The particular -- their legislation I'm sure it is yet and I like it -- -- -- not New Jersey.
-- that about that.
-- move on we should definitely -- But that is are we have to move on to Aaron Norris president founder of the Norris group we gotta be talking about -- We'll update you are -- California that -- of real estate what are you seeing out there these days.
On the money into the Bruce Norris Deron is my son we're seeing a market that's the -- will be a little bit under artificial.
There's a lot of bank owned properties that are not showing up on the marketplace so right now we have very short inventory.
We have multiple offers on everything it's kinda giving the indication that were really having a market improving.
But underneath all that we have record number of defaults that should be producing record bank owned inventory.
And so -- that that's not a correct.
Broussard we screwed your name up there -- look a day older than 26 though I'm sure you're gonna say so that's why -- It went quick yeah that quietly got this confused.
Yet -- real -- What you know -- sent that that isn't right.
You know every month that -- -- -- every month every week I -- to -- -- what appears to be glowing in positive news on the housing front.
Are you buying the data we're getting from the government -- in including today's.
Case Shiller home price index -- eighteen of the twenty markets saw an increase and it's all kind of hunky dory and where we're heading our on our way back.
It's his artificial date thing I've ever seen -- and here's why you have a median price increase you're -- for closing on a more expensive -- The sub prime loans -- the lower loans and price.
Now you're now you're more often or closing on -- arms.
An option arm for a 100000 dollars more per loan.
It's completely artificial Europe for closing on a more expensive -- -- the medium graphic -- OK Bruce we have to talk about what you think will get better but first I have a question from a viewer oil -- essentially seven.
Want to know what you think the impact of the commercial real estate collapse.
Will have on the -- on the residential market because we -- know -- at least we've been hearing.
That the commercial real estate market is due to come tumbling down.
I'm sure -- group commercial real estate market is going to get hammered quite a bit.
You have a lot of unemployment you have migration out of California.
-- the commercial industry is definitely gonna take a hit.
I commercials really more affected by residential -- vice Versa.
So residential goes first.
Unemployment then -- -- creeping up that Hertz commercial the commercial is the -- of the two.
Commercial really of the commercial real estate downturn.
We'll take a longer time to come back -- the residential market they're both.
Really in their early innings if you will end of this of this downturn.
The bank owned inventory for both residential and commercial is gonna get considerably worse before it gets better.
So -- with that being said Bruce how much -- banks even right now holding non of that inventory and not dumping it on the market.
For fear that we're gonna have just a huge downturn in prices because we're gonna have a glut of supplies that -- is that a phenomena that's already taking place.
Well you know I think it's.
It's a little different than that I actually think the banks probably -- less inventory.
Then they did a year ago what is significantly different is the -- number of homes.
There are over a year behind that they have anything begun -- the foreclosure process home.
We've estimated that there are some 300000.
Foreclosures behind in California.
So you have a default rate that's gone from five point three to nine point 7%.
In a twelve month period end somehow.
Foreclosures owned by the bank have gone down as have had trustee sales.
So we calculated that there's 300000 homes that -- Falling way behind that it will eventually be foreclosures.
But the banks are just not for closing on them for whatever reason.
Look at the banks don't want to own real estate it's a big bloody pain in the neck for them what happen going forward Bruce.
We got the government -- an -- -- it's sticky fingers in every day -- This is the theme of the day the government involved in just about everything gonna come -- and -- -- my closet next.
So we will take a while yet we got the government coming in what does the government need to do.
Obama claiming he's gonna earmark more money to the housing market should we see an extension of that first time homebuyers credit extended to everybody increase the amount what do you think it's gonna take.
To make this better.
I think I have a very good solution telling -- get the credit.
May get a -- down loan and here's why -- -- there's two gigantic groups of people.
They need financing that aren't going to get financed any time soon.
It's politically unacceptable to increase financing to the investor.
And the people that are in foreclosure there was an estimate there's going to be seven million homes -- you're -- people those families will not qualify for a new loan for a long time.
Whether you -- -- -- back or not.
You can hear my suggestion make the new -- put nothing down make them qualify.
In if they.
Don't make their payments.
Let alone be taken over by anybody that has money to take over the payment it's a program that used to exist FHA simple assumption.
They send in their money make the payments out.
And the next owner owns the property the bank does not get their property back.
And that's that that would be helpful solution you have to create households that are capable of -- property.
And right now even -- the 8000 dollar inducement there's honestly not enough people that have the down payment.
So he expanded the no down you pick the perfect time to take that risk.
Because the prices are so -- in the interest rates are so low the payments would be X would be acceptable to the next buyer.
-- -- and welcome to -- bruise that's it we got wrong but that smells a little bit about.
Probably gotten this good pickle in the first place in town that's exactly I -- that would be the response here my -- my answer I'll get there you don't put the ball.
Go ahead -- lips.
Let's say that the person defaulted.
That -- if it's being able to be taken over by anybody else.
Without all -- then they would have skin in the game they would make the long current.
If you had to go to trustee sale let the opening bid to be just the back payments.
That help would get purchased by an investor.
Nearly a 100% of the time it would never be an Oreo.
And you would have gotten financing to the investor and to the person in foreclosure and they created them bigger market for the housing.
Financing if you don't do that what we're trying to do was create owner occupants.
That will be able to buy -- -- they granted the time that cost expense to the taxpayer and it's a big mistake.
-- Bruce we appreciate it thanks always say hello he is on for us all right okay director's -- -- -- founder of the -- -- housing we I think that break we come back though.
We'll talk a little electricity.
Wireless electricity to all around this do you feel it I just -- The hair -- things like that the old days and -- and I do -- that billions.
Look back and in my about wireless electricity.
It's just an oxymoron doesn't it but thankfully not -- in consumer technology trends expert -- -- Yeah.
-- -- -- wireless electricity.
Looked up at that.
It sounds like science fiction doesn't sound like yeah I saw the movie district nine and it sounds like something that was in that movie.
Would you actually probably seen versions of this around your house a few years ago or something if you had an electric toothbrush you put it a little charger with no wires it would charge overnight.
That's a very rudimentary form at -- but we're moving away -- into the future now.
With the ability to take things like yourself voting your laptop and placed on a common -- charging area and they're gonna have a little -- built into them.
And then those devices we'll talk to about having to actually plug them into the wall separately to have you know who would like to get rid of this metal wires in their house going to the wall outlets -- in your car.
That's the first step to be able to put devices so it's looking like a pad and have -- charge of going forward.
In the next five years or so they're gonna be able to send us electricity over the air sealed basically have a wireless living room and what that means -- you could design a house.
Perhaps certain oils and their walls and you could be sitting in middle of the room with your TV your -- In the the power goes through the air -- genetically just like earth has a magnetic field they can trip -- the electricity in the magnetism.
And then back into electricity on the other end of the device this is real stuff coming up the next few year -- -- and Bill Gates.
Will any of us be a little for this next few years are we talking about fifty years eighty years down the road.
No actually beat beat beat most promising technology is called back genetically coupled residents it's that in better from MIT and assistant professor there and -- this.
He's been working -- for a few years and he says within the next five you're just gonna be commonplace -- a common price point is it's not going to be pie in the sky.
Expensive actually the concept is quite simple when you take him from a physics standpoint it was just fine tuning some of the boiling and things that was complicated but once that's done.
The mechanism itself is not expensive to -- so what's.
Outside my house look like actually inside academic TV in the center of the room what's the outside looked like -- -- from a telephone poles in the -- balloons stuck in the -- at -- -- -- -- -- for quite.
There yet because that would be sitting very high voltage greater distances but right now we're talking technology it's considered fifty to a hundred feet within your house but power normal appliances that's what we're headed.
But the first -- like I said we're gonna see within you know the story products out now starting to hit the market where you can take it.
Your mobile -- or something and place it on a pad if it has a special toilet with.
I didn't -- Yeah have a great day thank you so much -- grew -- -- past.
I would definitely -- it out I'd be happy with less -- I'm sure you would we all would make flu season.
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