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Wall to -- on air talking about health -- own house passed.
The overhaul will late last night it was probably after eleven by the and -- today were certainly the only effects of it namely -- -- hospital stocks move in.
Although commodity prices not not all that great today but.
We got a dollar rallying and -- yeah exactly this is more of the same Euro really continue to take a pounding in their four dollar denominated.
-- Commodities like oil continues -- drop now breaking below eighty dollars.
It really does have that resistance point about 83 dollars yeah because you know it's hit and instead three times now since the beginning of this year just last week -- -- again.
And now we come back down below eighty dollars submerged in this range with a little.
Hoping is really interesting though between what's going on with health care and then I heard this crazy staff this morning mark -- talked about on Barney Inco today.
How it's cheaper for some companies like Procter & Gamble to borrow money then it is for -- -- It's is unheard of that is that's just unprecedented.
It is pretty amazing and yet wonder whether that the -- that improves.
Boy doesn't improve when.
Lot of close on Capitol Hill are passing -- 940 dollar a forty billion dollar.
You know government spending bill yes ritual -- they say we'll save money.
Or reduce the deficit I'm not sure exactly how on -- that's going to work but.
They'll figure out by the way to my taxes yet over the weekend -- most of them I think my taxes and chunks.
Uneven and a former accountant like you.
-- that for you would think it would be like a hobby would be like an eagle on shooting hoops you you decided the attack it taxes when we can't but I do in chunks.
And the Alternative Minimum Tax took me longer than the entire rest of my taxes combined -- doing that stupid thing.
And if -- if not -- going to be alternative maximum tax by the way it goes from Alternative Minimum Tax alternative Max okay.
Can just one question from viewers why is still doing my hands.
But that it.
I'll put it away -- if -- did it even if I used you know Turbotax lets -- -- the go to the gyrations of putting it in and having healthy you know you just.
It's it's magic.
-- I don't believe in magic honest to -- like.
I believe it's out of my control and I want -- all to be in my room and found that if more people did their return -- they would understand it they wouldn't get that it just mathematical equation and that -- wouldn't go knocking on -- -- door saying where's my refund you would understand why wouldn't get a lot of it's really multiply this times point 26 or points to -- the state is the worst state to state -- of the worst multiply this -- point one floor.
-- point 35782.
It's ridiculous how they figure I -- not believe he still likes it there with a calculator and let's move honesty solid joins us right now -- present a solid group from that he would not see how you see you have to be done.
-- that Chris -- doesn't tax return by hand.
I'm -- -- you know I'm I'm -- I'm.
It's amazing well you know everyone's got a little something they like the abuse and I.
I the video you don't even know is that I use an -- kiss from an angle into the number as well -- -- and how much longer.
And this is accurate Annika.
What do you think about what's going on today you know we get this big monstrosity -- health care bill passed in the house last night.
And now you know would have futures indicated a lower open global -- were up thirty.
Well doesn't amaze me that's kind of the story of the market over the last year or so but.
I expected a bit of a relief rally that we're -- and -- -- we've we've got something off our chest now we're gonna sit and digested.
And the big question is going to be.
How we can afford it.
And who is it going to cost.
And I think that's the big question because we're going after out.
More than earned income long after dividends are going on capital gains to fund this thing.
And then my question is.
You know when they went back to start attacking Social Security.
The rich became those that made between 34 to 44000 a year -- I wonder who the -- he's going to be in this situation when it all breaks out.
God willing it's Chris -- in -- yeah you're right it.
Here's implied that boggles my mind because I'm with you.
We've been hearing this a lot today little bit of a relief that rally a lot of this was priced into the market up until now.
But you're point about taxing dividends interest basically unearned income at three point 8%.
A whopper to me that is a killer that's gonna prevent money from coming in the market and it's certainly going to make people.
Get creative to avoid that at the end of the day so -- -- not seeing that play out in the market yet.
We still have quite a plate we've been dealing with -- in -- number one we've got interest rates low but no banks are loaning money.
So we're -- the Stanley the economy that way.
Jobs the story is still not a good story the consumer story is still not a good story now we've got this monstrosity to deal with what it's gonna take his.
Once they define the playing field and we understand where all this is gonna come from.
Then we're going to be able to get I don't wanna -- creative but we're going to be able to look at different types of income that -- media.
Avoid this problem and and passive income is a great example of that.
A passive income doesn't create tax and Social Security benefits.
If it's typically a non issue so that might be something more people are are are looking towards in terms of offsetting the three point 83 point 9% that they're suggesting.
Yes the we get this little relief rally on the on the back of this.
Passage last night but then what do we look to next thing you know we look into housing data the manufacturing did we get this week.
-- jobs data has been in bad and problem promises to continue to -- so for the next few months aware are you looking for the catalyst to move the market higher.
There's a lot I certainly didn't I don't know that they're there if there's got to be some real good.
News and it's got to be a chunk of good news we've got to have jobs we've got to have private sector jobs.
We've got to feel like maybe the banks -- make -- loaning some money so small business can start hiring so they can start expanding.
Because I really think the movement in this economy is gonna come when small businesses hiring.
And then once people have jobs they're probably gonna take care of some better some house -- they need to take care of before they start spending and -- this economy -- so I think.
We're in for a long haul.
And then I I think there was an announcement made the cap and trades next they're gonna tackle that issue next that's going to be another layer of of bad news on top of pretty expensive news that we just recently received.
And cap and trade sends ambitious.
Can you -- explain in your notes you said that the middle classes that risk can you explain why.
Well sure every initiative that's coming out of out of -- Washington really -- on the backs of the middle class.
For example we're talking in this case about about the health care issue.
When you talk about business owners.
They're gonna feel there's the fact that that there are still laying people off the fact that that.
We've not had the new tax increase.
Schedules out yet defining where the brunt of that tax revenues gonna come from.
But it it just seems to me it feels to be like all of these initiatives are riding on the backs of the middle class.
Once you get rid of the middle class and now we're heading into an area that we don't wanna go -- and and it's gonna run out so.
Steve real quick what do you like -- -- -- it sounds like -- -- and relatively cautious until we see some improvement it's in this economic data so what are you like over the next few months into the sectors.
Well -- still like the transportation of energy sector and specifically.
They get paid for transporting natural gas and oil.
We don't have to worry about the commodity price and it pays it pays a good income.
So we're getting paid to wait while we have a rebound in the economy and I think when the economy rebounds this is a sector that's fairness it's gonna -- -- because that increased.
Transportation of gas through the pipelines is gonna show in terms of revenue.
So I think it's a it's a good place to be for retirees.
It's a good inflation -- ahead of inflation and that's something else we want to keep our eye on when we take a look at core inflation.
And pick up the housing numbers I think core inflation -- higher than than what we're being told so.
I think it's a good played -- to stay ahead of that.
-- thanks so much for being with us.
You bet thank you have a great day you too steep sell out president of the -- -- and Baton Rouge, Louisiana background -- -- I mean -- -- today.
But it looks -- That's a province that's all right though they have 1111 act tell us what pusher I.
-- you'll come I was -- a lot of people aside about 730.
Tiger Woods two interviews one on the Golf Channel one on ESPN.
Mom didn't really say much -- one I mean I -- one of the comments that he made.
On the interview with Tom and all the on ESPN last night was interesting Thomas about the reception he thought he was gonna get from the crowd said he did it was making a nervous.
At the masters he certainly hope that he got a few claps here and I did see he will still get a few -- but by and large that it does still get more claps.
I think this is generally -- polite crowd.
Didn't say much in terms of the UN or the accident or what happen or even about his treatment.
You know did acknowledge that he had he going to -- made a lot of mistakes he'd heard a lot of people.
Honestly what is a couple of just inside stories about this number one CBS passed on the interview opportunities that why they didn't like being told a -- was only going to be five minutes tiger's people said it's only going to be five you can ask whatever you want.
But no more than five.
And also the timing of it.
I mean this -- It's 730 that was right at the end -- -- -- Texas -- game -- this -- bread and -- for CBS March -- letting their feeling was if he's dictating how long -- he's -- -- be exactly what time we're -- -- the interview doesn't really fit with -- and even though you know they're the ones -- -- -- -- the masters and benefit the most front.
I also thought the tiger's people said.
Hit it cannot here any sooner than 7:30 eastern time which would would have put in an hour and a half after.
The end of golf coverage for that data transitions championship the PGA event.
On that day was scheduled to go off there at 6 o'clock.
They -- an hour and a half weather delay.
-- -- putting in the final putt to win that -- -- -- -- all the golf fans are watching tiger.
On ESPN so.
It was sort of let you know we tried as best they didn't really worked out one a couple of things Ari Fleischer has apparently gotten and we talked about Ari Fleischer -- Apparently tiger got Smart and said look this is looking like a PR spin I need to get rid of Ari Fleischer so reports -- that Fleischer is off the tiger team.
And the second thing of interest to his.
And Bob raised him from the daily news that she brought this up here in New York.
Always provided the second thing to your plea -- -- -- -- want to -- really cannot replace our perhaps doesn't want it to seem like a PR spin every time he gets up there and talks even though it has seemed that way sheriff.
If you wanted to -- like it's from the heart.
You know it's very carefully by the way what he wore yesterday there in this thing.
Captain golf shirt like he known those Souter and then he's ready to play golf he wants offer.
He wants to make that known and yet they do is ESPN on Thursday and Friday three and a half hours of coverage.
Bomb they don't know whether they're gonna show tiger.
In his entirety live a piece of tiger because tiger the masters controls this in the masters may say.
Tiger you -- off early in the day.
And therefore once ESPN -- -- coverage.
They may be there -- only be four or five holes left for tiger play alive.
So that's going to be really existing disease the and adjust their time based on what the masters so.
It's the masters prerogative to tee off tiger whenever they want and they've shown in the past.
He'll do whatever they want.
Now some purpose.
And yet again I don't watch golf it's like watching paint -- to me but why -- Do -- will people and Jackson that consume too respectful sport Pete do you think really man -- -- and saying hey what was she like.
Not many had a -- very field.
More acting like Bethpage black here on long I'll get a public course yeah they'd be all over say can Rangers exactly.
But not not of the -- the national I gotta think quick break much more on the health care situation.
Coming up as well -- is gonna join us to talk about that Atlanta -- second -- -- eighties.
Down at the stock exchange also Jonathan Overland from chapel hill north still house then obviously very subject exactly just -- -- on -- Welcome back to -- foxbusiness.com.
Live Chris cutter Tracy Byrnes doctor Jonathan noble and -- joins us right now he's just a professor of social medicine and health policy.
At the University of North Carolina Chapel Hill that's doctor as a Ph.D.
doctor not -- wanna make -- everybody knows.
As -- I get started here doctor welcome to the show.
Thank you for having okayed this bill passes last night -- ultimately get done.
Well I think one of the reasons it got done -- Democrats remember what happened in 1994.
When they didn't pass Health Care Reform and Republicans took over both houses of congress for the first time in forty years -- I think in part it was really fear of failure.
Okay I'm not sure what appears to be cheering about the -- DC we have -- well there's nothing bipartisan about this bill right.
You have a lot of Democrats that had pretty much said it's not really what I want to vote for but -- being basically strong armed by house speaker so I gotta go along with this.
So I don't know who I'm not sure who -- if you.
One in this whole situation.
Well you know the American political system really forces compromises and concessions they are right.
It's not the legislation that really anybody would have drawn -- -- there ideal on the other and I think there is good reason to -- that's it really is gonna help.
Tens of millions of Americans who don't have access to health insurance get insurance and we should remember that most of the uninsured are working Americans.
Donovan who is this bill -- then.
Well I think in part it's gonna hurt the insurance industry.
And in the following sense now they are gonna get more customers and I don't like getting more customers.
But it's really gonna subject the insurance industry to -- type of regulation from the federal government that they haven't.
Had before I think there's a chance that it's going to hurt some of those Democrats from this swing districts that John McCain won.
When they run for reelection in 2010 and there's no doubt that Americans who make more money are gonna pay more for the -- So what happens in November you know we have Dennis Kucinich you -- -- -- an Air Force One and somehow miraculously changed his vote.
The -- -- that will eventually come out you gotta believe we have all these other deals Louisiana purchase Fella who aren't Prescott has good deal we have all the stuff going on.
Will this at the end of the day affect the balls in November.
You know my crystal ball is pretty cloudy if the election were next week there's no doubt the Democrats would use a lot of seats in the house.
And quite a few seats in the senate and that is for reasons having to do with things other than health care the economy disaffection with Washington and anger out there and so forth.
But you know in November is a long time away and I think for Democrats the choice with sets that we go to the electorate having spent a year on health care.
And having shown that we can't govern and failed to get legislation through quarter we try -- the end of the day to pass something they chose door number two.
-- -- what do you make of the reconciliation peace because.
Ali this is -- a second piece that is yet to pass it's gonna go to the senate.
And from my understanding the senate may have as many as twenty different changes to that piece before sending it back to the house what do you think comes out of that reconciliation.
Well you know I learned most my political science off from graduate school but from schoolhouse rock and a and -- version of how -- bill becomes law this wasn't.
In there you're right there is a lot of drama last with this reconciliation.
All of us have gone and I sort of civics lesson that is painful and ongoing the last couple weeks and that's I think ultimately.
The reconciliation process will go through there -- going to be some bumps in the road but having come this far I think the Democrats in the senate we'll get it done.
How much of how the arm drugs -- had to -- this their great.
Additions in this reconciliation peace and I was hitting people probably didn't even want.
This an initial legislation to be passed how much more is going to be thrown on top with a reconciliation -- -- think people are very familiar with what's in there.
Now -- I don't think so.
We know the reconciliation bill really improve some of the problems you all -- mentioning before so it gets rid of that special deal for Nebraska to get more Medicaid money.
It pushes back.
The tax on high expense health care plans all the way to 2018.
To this bill admittedly is very imperfect I think the reconciliation bill smooth itself the edges a little bit.
Stuck in an interview on us today.
Thanks so much Tommy John Madden Donna Hanover Lander assistant professor of social medicine health policy at the university Chapel Hill thanks again said.
Are we getting it down to the floor near second -- company -- -- -- wind to give us the scoop on what's going on these health care stocks and call what's going on.
It's pretty interesting to watch the health care stocks -- an animal health industry overall trade secrets.
As the stocks are moving higher the sentiment here on Wall -- it's a different picture had a heated debate.
A short time ago here to my -- of -- of course looking at the fiscal impact that we that we actually won't feel for the years to come but the immediate.
Certainly the reaction right now immediately is a lot of up -- the health care sector health related stocks.
Are outperforming the entire market for the most part -- the number two performing sector.
You're seeing Merck for example with its gain contributing more than five points in the Dow Jones Industrial Average that -- -- in the top three performers as far as point contributors and that's.
Great news for them using hospital stocks hitting 52 week highs.
So really need the drugs were talking at the hospital allowed the -- all of these these kinds of companies that basically potentially -- all the new.
Insured people celebrating and business and money and have that long now that means that health insurance are a little bit of a mixed bag Epstein and -- for example moving higher again.
But names like I Humana and also country -- pulling back a little bit of course we know now.
That these health insurers won't be able to deny those with preexisting condition so.
That might put some pressure on them are now for the most part we -- -- -- -- up Aaron despite there's a lot of movement on.
Yeah that's certainly what we're seeing.
The goal thanks -- Recordings of that was going on on the floor and -- because there are political opinions out there obviously for you can't argue with the fact that at least short term.
The stock market is don't know -- Wall Street.
Has separated itself a mainstream.
And you do you agree with that and mean it just seems like we've had why do you know jobs -- -- how we're so the bottom of the housing and you were up 70% over the last year.
Well I think Washington is trying very hard and we've been talking about -- -- -- -- pushing the market on purpose.
She -- short term rate while she's living for today today the deal is done they don't -- -- think about it anymore so they can move on and try to make some money off the deal.
-- today but not everybody is gonna struggle.
Because of this legislation that should fear was -- -- -- at the desk is also some winners.
In this whole thing well that's you know it would Tracy vs say removing the uncertainty is the key to this whole thing and what we're gonna talk about basically I have placed a phone call -- quoted in the New York Times today so I I you know.
Great minds why not go to great mind less fun Leiter who is the director of health care strategy is military back and he said exactly what you just -- and I spoke to him about two hours ago he said.
They've removed uncertainty right now the question is company fourteen little uncertain the return -- -- the positives right now you're an investor looking to buy either pharmaceutical stock.
Or health insurance company stock right now the reason it's a good play for you.
Is that won the uncertainty has been removed but the question now is will the Democrats remain to you know maintain control congress.
Because if they don't that -- he's making are -- you might see you know new changes to these laws that confronts her in the back end.
How successful will all of this be well we can't answer that question now.
But he says we're gonna get a real quick indication if this is going to start working this year.
Has ninety days from the moment that the president -- this bill into law they're gonna create the do high risk pools and the masters.
This is key to figure and if you want to be a long term player.
With health care stopped his bottom line -- -- is that yet it's gonna play all right for now.
But you -- be moving from the insurance companies potentially the high risk clients those who have very serious illnesses into these high risk pools.
The question becomes -- 2014 to the government continue to pay for the high risk pools or to those people down the road have to come back into the private system or do you mandate the private system.
The high risk clients because it's too expensive yeah that's the uncertainty down the road but long term he likes he said they like the United Healthcare and Humana as far as the insurance companies and from the -- -- that.
They like Merck and and of artists and mr.
-- and it simply.
They see that it's not gonna have that much impact they expect over time you know profits in the pharmaceutical industry to grow by about 2%.
Reason being it's all about pipeline it's not about the new taxes they're going to be paying in fees and so we -- didn't shoot 32 additional 32 million additional people and if it's not gonna affect the bottom line of these insurance companies and it just affects our bottom line right as it is -- -- additional expenses on us that through the fees that the high risk and potentially the way of the -- of the high risk pools.
He pointed out there's this arcane bizarre thing in there remember -- administration wanted a -- panel.
To determine how much premiums to go up yelling get the apple what they did give.
To the secretary of health and human services.
He's the authority to come up with a formula to make sure that the insurance companies paying roughly it's I think it's 80% of the premiums going back into the group health care in 85% of the individual.
-- luckily that's what it is right now.
Yeah but for that but what that mr.
-- letter referred to as some of the the the bad players.
They -- down at about 60% so those profit margins for some of the third party players about it.
You know start get squeezed I was still thinking short term now they've got the short term health care act.
I'm in long term it could be.
-- in the half a glass business -- he he's saying that short term it's a good place.
I definitely think he's thinking short term I got -- -- -- they've got -- and a -- -- -- -- -- we -- investors have priced in the worst case scenario.
And it did not happen that would have been single Payer plan then that whole thing it didn't happen so now things are likely to get better for health -- investors.
He thinks over the next year you know if you're -- to replenishment and.
And on Friday with Aetna and Cigna and some of these others going up and just continued today that you write about it being short term because if congress turns over in November you gonna have -- -- running on the notion of repeal and we're going back and then have that then -- the uncertainties right back.
And in the next red flag to if you if you do decide to buy and hold some of these stocks is going to be the and it's funny 13 January 1 point fourteen.
You want to watch in -- you can start measuring this within ninety days of Obama President Obama signing the legislation.
You can start measuring the numbers of people going to that high risk pool.
The -- is -- be if you're playing insurance stocks.
Watch that number of -- clientele going to the pools and is a growing greater than the expectations housing knew about it because it I was gonna have to figure out if we can't.
-- those high risk -- 12014.
It's gonna be putting the pinch on the private insurance companies.
To do this track and that that you know dictated that that's the unknown at this point but starting in ninety days you can start measuring its working.
And I would think -- it out a whole lot being discussed continually being discussed about cost control we still haven't don't talk a whole lot about that so much more about the insurance people controlling cost quality medical device makers would still be very good play in this whole.
But they also -- you know -- they're gonna have some new fees you have to pay taxes -- I on on the devices themselves.
Well one other thing you know we need to keep talking a lot about that you said 32 million it's actually did depends which expert you ask about twenty million new private insurance customers.
Twenty million coming into it to what you and I would call that OK and that the managed care and -- of what happens the other twelve.
They -- and the government that the Medicaid the system okay but.
But we did did the private insurance situation when you have all of these people coming in we keep talking about you can't deny coverage now on pre existing -- But they don't happen.
You don't cap how much you can charge someone with preexisting -- -- a neighbor of mine used to live next to order in Cleveland.
She is -- cancer survive she's not twelve years in remission.
But she pays out of her own pocket right now 121000 dollars a year just for insurance -- -- and cover the medicines she needs which has been in remission for years and years.
Well there's no cap on -- a private insurance company could charge -- going forward so potentially what -- someone like her.
If she -- seemed to this becomes too expensive in the private type you know into the high risk pool.
But if so many people like her going to the high risk pool and it can't be funded approximately.
Does congress enact new mandates on the private side -- -- you have to cap how much you can charge the high risk.
Cline NA and that that's -- -- answer here is that bad that congress and put an.
And that's -- I mean that's a no brainer to me that will absolutely have to and that and that is the question if you're about to buy stock today.
Thinking this is good play in the short term but if you don't have an exit point.
You had to -- one.
But it's -- fourteen Israeli attack my -- tying shirt combo it's thank you as opposed to out loud orange thing I'm so I was just.
I want to thank you but he Janice thank you -- later.
I just real quick -- so obviously there's some stock winners in this whole thing.
And -- one of our viewers though mid grade point as a business owner -- approximately fifty employees and hear the numbers.
That fifty employee very import yeah I -- will soon have under fifty employees.
To avoid the man 49.
I -- -- hiring here I'm telling you that is a big deal.
And right above those right above that fifty mark because what we see what do we see so far we've -- people.
Cutting employees because they realize it could be more productive now they have the business risk of hiring somebody else the you know maybe -- it won't work out and has severance costs and these other things down the road maybe I'll wait.
So in addition to the business risk now they have the government risk of these 151000 IRS employees that are beyond there are no down their throats.
About whether or not there doing this properly you know this gonna say -- -- that doesn't know -- not hiring anybody.
This big Gary's point is exactly why this is a jobs killer.
And its -- -- one key and I won't go into the equation because I am a jerk and was up figuring this out last night.
We're -- close to 2000 dollars.
-- probably at least 21 people if you're 51 employees and you're not giving them -- -- the right amount of coverage right.
You look at about 2000 times 21 because that's that crazy number they used.
As a -- I mean look and it is coming in London is our -- and making profit then yeah I -- fired two people to Gary.
And we got to take a grateful as we go to break him and ask you a few of -- -- this -- what I want you doing my alternative minimum taxes last night that's.
And I'm here is paying good tax from recent program.
Bottom spot -- -- -- live trees weren't -- -- -- Dow -- up about 38 points and believe it or not on any health care news which everyone thought coming in today based on the futures market was going to be down.
But we're certainly seen some hospital stocks rally because -- -- this.
And and it didn't even talk about it you know -- uncertainties out for awhile for awhile -- -- more certainty it ended this is not done by an -- assets Julio worst case scenario is priced in and I guess what we've seen is he's seen some bouncing off certainly see it from pharma names.
But the other thing -- is we've seen a lot of -- -- is really picking up -- over the last couple weeks -- Teva Pharmaceutical and some of those and yet they -- in the supposedly one of -- losers and yes exactly that bad actually it is surprising to me because I agree with -- they should -- almost be dammed -- right but that's not the case and we -- we've seen so -- -- what else -- -- in this market though -- -- up 37 points I now -- I have to point -- First -- -- we talk about -- -- -- all the time like it's the sun -- -- well it's pretty -- -- rain is coming to an end.
You know it's got a good balance -- all that stuff but at the same time the picture just seems to darken over the next few years it relies almost completely on subsidies.
And those -- being slashed -- and Germany.
Where -- up solar has about 65% of its revenue companies you mean to say that the pictures being darkened here when you're talking about -- solar stock that's not good.
You like that yeah I love that did you mean then.
Okay good on those good -- operator you can parent.
Means the little box.
So well although I would say this first quarter fourth quarter earnings more than quadrupled thing else not about expectations for -- -- was still climbing out of this recession folks but the profit was down.
Now that's some for the backwards story than what we've been hearing.
They hadn't -- -- from the margins on the and so yes the times they absolutely templates does the latest on an island so did you know about -- whom he might from the decline.
You -- I know these things no I'm not and why did you know I'm not in the and it's easy to.
Yeah I guess anybody regulated today when he -- about these hospital operators.
You've ever held services Molina Healthcare are everybody's up today there among the top gainers after the house passed the Senate's overall -- Williams-Sonoma we talked about this earlier in the day.
Fiscal fourth quarter earnings soared they actually beat their own forecasts.
He hit a 52 week high today to.
High end I'm more high end it is but would you mind this is again I I -- on me now moving even -- do -- but you're not buying this is a target.
You -- and pottery barn and Williams-Sonoma and places like that that to me that's you know high and is doing well that it lane.
Sonoma to they do like sampling for could be part of it -- -- in the side dish CNX gases that today's announced consul energy.
Is down but consol announced plans to -- the remaining 17%.
Of CNX gas.
They're kickers are very similar so it's a little bit confusing console buying CNX gas.
Million CNX gas way up.
Finally under market -- Down Charles Payne is here it's a house of -- -- a -- -- Wall Street strategies now we have the entire company here on the desk is in the world 44 points now this is close to a session high.
And it is -- -- you know it's better than a sharp stick in the eye but clearly more so now that healthcare is gonna be rationed because you get a sharp stick in the game at the wait in line.
You know again that actually taking care of nowadays -- -- might cause a little bit more money tolerated come get.
What do you make an out of -- -- just relief rally short term today tomorrow whenever an -- back down back on.
Are there 1 o'clock I think really -- a large role in it -- now listen you know could have been worse it could have the public option and that could had a commission where the president could dictate premiums and they I think also that a lot of people you know another -- you might think it's cynical but another viewpoint could be.
That this might lead to even more of a massive shift in November and didn't you know with respect to to the elections in May -- the street likes the idea of that as well.
I hope you're right then then -- see your point earlier this morning on -- company.
Does the bottom illustration strike while the giants top because people that this is not -- that way of thinking our thinking -- pleased with just continue to push off legislation as long as he can.
Right I think whatever else that that then it's near and dear it is hard you've got to go forward right now although.
You can see that a lot of these lawmakers you know I think in the last week -- he spoke to almost eighty of them.
You know and that the pressure was immense the the deal cutting I mean there's no way they can go through that again on something like let's -- a cap and turn.
-- when you gotta believe though that all this is gonna calm now.
Between now -- November.
You just -- every backroom deal that rice field and I keep bringing up Dennis Kucinich but man someone -- so vehemently against the yen takes one ride on Air Force One and although -- we got to vote.
I know my -- -- him -- you know you get.
30000 feet in the sky no one's around.
President looks him and I -- and I'm on the same page should I do I want a public option as well we don't take this that we can never get to what we've both ultimately want.
You know Governor Huckabee made a great point on our show on Saturday and he said.
Use the speaker of the house that this is your speaker and his whom you worked for she decides your committee placements all -- stuff and he was basically like -- -- yeah campus look now speaker.
Well unfortunately I don't I don't -- -- subscribe to that so much because a lot of these guys it's going to be irrelevant.
What other retired yet -- -- they're gonna be well I mean that's and to me that's the tough thing and that's what I've what bothered me a lot when Nancy Pelosi was she.
She's telling everyone else to fall on -- sword but the fact this -- secure in her position she's not going to be money on office but a lot of people who did fall on the sword will pay a price in November.
Well -- there's always money to be made I mean even you know on a day like today that it seems like a pretty dark day in -- For capitalism infer the the constitution and whatnot there's money to be made in Charles you're gonna.
Help us find a little I'm definitely gonna try I get three sought -- I think mister minister reported any -- that -- -- about the amount of so go to split.
So -- the stock is up on the split but it just again that that they've been -- the street on earnings.
The earnings estimates continue to rise really rapidly.
For the stock and you know I think it's around thirty -- I think the stock this year 37 -- you can really hit that number gushan CEO Alan seagate and that -- been through a lot of they held him there though men anyway and now you know what now than -- real sweet spot this hard this stuff.
This right all the information that we did you know you there's just no place to put this stuff and that's why this is stuff pot and cloud computing it's hot it's hot again not mean you can't have a situation at a chart and edit it sexist and ethnic -- and give you an example of fiscal year eleven consensus three dollars and 47 cents three months ago it was two dollars and 41 -- That's amazing how -- that's gone up in the street normally doesn't keep track now.
We're gonna -- says the market is up on an indoor and that they have Armageddon -- that woman to figure the -- theme on the last night dinner with his -- bella.
This is the part that was spun off from this is just the newspaper company you know that TV stations and all others -- -- separate now to separate company.
So you know you say well newspapers in this environment we always thought computers high tech networking.
Is certainly -- less than half -- book value.
You know it's it's a contrarian play but -- it works out in out down here I think someone can make about 2040% and -- and the thought process is not that it won't be gobbled up by a bigger.
News organization that its knees.
That was spun off originally because smaller -- -- of this singular entity would be able to perform better -- that that might that weight stays.
Well I think they did so for for shareholders a lot of -- we have a role that we have something like this stuck in the company of people have a negative perception of the -- does well it's an anchor on the stock yeah I think they -- -- split him up.
Shareholders who do well but don't be surprised -- shareholders -- pretty good with a bit.
This company has only three newspapers left the right shot listen to -- and web -- right the Delis and -- morning news the Providence journal that enhanced web sites right.
My day innovative start charging they're gonna have to do have to try -- and he but and perhaps seem to think it'll work and yeah doing that everybody has the Wall Street Journal either ran out so that national -- you -- -- -- cloudy morning news now that that well I think any little -- you might.
You know within them that's that's going to be the trick though but at least we know that they've cut their costs that it should be Hartman and and profits that they can get a few handful of people to -- again.
Any -- a stock is trading at less than 50% book value this some inherent problem to use them some -- that your risk -- well.
Anything this week you looking forward particularly we got done we -- existing homes he got new homes he got.
So manufacturing data coming our way obviously we could just avoid gaining particular all of this stuff really a look at and then on Friday we've got the Michigan sentiment numbers not it's not as influential as the one that comes from the conference board -- it's something -- -- -- pretty closely.
Having that we destructive of the disconnect between them Wall Street and main street and the housing not showing any signs of upswing at all at all it's just it really is amazing and you know I tell you what now that this health care thing -- -- -- the way and people started again focus on the reality of the life because.
It's not gonna change many people's lives today.
You know the home buyer tax credit has not worked in lieu and you know -- -- -- had a spike in the fall but since then we haven't seen any follow through the winner and I know this home by a the housing data is very erratic.
From month to month and I know a couple months in arrears but still if that proves itself out.
Then it -- he isn't that sort of the detriment of the Obama administration say -- these these this policy of falsely propping up these bubbles isn't going to work we've got to let them completely collapse.
-- -- -- know -- I -- from a stock market -- -- the good news is that expectations are so low on you know all of the stuff but you're right look at the home making making homes affordable.
No that was -- -- -- it's this he's got to wonder I mean you know it's gonna expire April 30 will be extended.
Extended cash for clunkers.
They might they know they might -- -- I'm not sure why by then I think it's pretty much gonna be seen and it's not working now.
Isn't what you mean argue that spring sales coming up -- lap steel last February the snowstorms in February exactly Charles -- -- see in our guys thank the morning -- be right back don't go anywhere.
In this upcoming live trees brings -- -- So as I keep questioning the ethics in Washington DC -- it is appropriate that our next guest starts.
Explains to us being about the most ethical companies on Wall Street Alex bring them founder of -- this -- down in Phoenix is with us now.
How does one determine.
What companies are ethical and which ones are not.
That's a great question that -- started this number years ago -- are creating database on companies and there ethical cultures their compliance systems -- risk systems.
And and and relationship with the communities and -- that we now have a very large database and frankly.
The ones that -- highest on what we -- an ethics quotient.
Are the ones that end up at the top of our left by industry as the most ethical when we release our rankings every year.
I notice that -- had seven pieces that go into this ethics coalition of seven broad categories I should -- should say.
Fuel is really quickly for us.
Sure I mean what you haven't the -- -- that -- that starts with compliance right you have to have a company that's committed to paying a lot we have that you can start driving the culture.
Within the company a much more transparent internal culture which actually contributes to innovation which is one of the other components that we look at.
We also look at the corporate governance and look at their corporate social responsibility programs as well.
Citizen includes transparency.
And all that I was just like -- -- -- -- kidnapped me and I have real that I believe the companies that need.
Your list are exceptionally transparent.
They are very transparent and they're really ahead of the curve because as you talked about.
With the government getting more involved with the regulations and so forth that.
All companies -- -- gonna have to expect to be more transparent about.
How how they're making their money you know when the big issues are looking forward on is going to be a tax issue for example a lot of -- -- against our community under scrutiny for that.
And compliance -- we've heard a lot today about the Health Care Reform bill.
In there is 300 million dollars and enhanced enforcement for example where the government's going to be looking for comments or break in the loss so the best companies are really -- ahead of the curve.
-- the best risk systems and being very transparent about it.
Alex three banks none of which are based in the United States I think that probably goes right along the lines are thinking of our viewers.
You have rabobank that's the mind.
Standard -- bank in the UK and Westpac Banking quote from Australia but no American banks and there.
You know and that's not new.
We are not there hasn't been -- American bank on -- for the last three years we've been disappointed but they haven't made the list and we noticed when we put up a list two years ago before the financial crisis.
The top rated banks actually survive the crisis -- they weren't taking that big but big bailouts and down portraits on the lower rated companies.
What's interesting to me that was your top three or aerospace companies.
Paris Rockwell on the aerospace -- all up on top 12 and three how come.
What we look at it by industries so there's three aerospace companies and in and aerospace and defense industry to look at other industries as well we're always looking for Tracy.
It's who's the best within their industry.
So break it down across 35 industry so we do have good representation from -- -- space has.
Also other industry and really good mix of smaller companies but a lot of really big companies as well General Electric and next Google.
-- a whole foods which is kind of interesting -- on there and Starbucks as well so Cisco Systems still a -- put a lot of really big companies still.
You know why there's a lot of really big companies is because those companies have generally with the exception Google have a very long operating history Eden and we've -- -- for example that GGE has really shown leadership over the last ten years of emphasizing globally.
Other compliance ethics and risk systems and drive a culture of ethics.
Really first to prevent.
You know any kind of material violations -- law but then going beyond that they really feel that it contributes to their culture.
And they realize they can attract better employees they can attract better management.
Talent you can see it it -- felt out of you know Jack Welsh and how he ran his -- succession plan.
Very transparent open corporate governance system there and it and then they're seeing benefits all across the board.
Including -- up to win more customers because of their reputation.
You know the Campbell's soups in the General Mills -- surprise -- what jumped out at me though -- Xerox.
Xerox has been through so much litigation over the last years and yet.
Here they are and is it because the ball that that -- like I will tell you anything you want.
You know it that certainly contributing factor which you find some of the best cultures are born -- -- crisis and you can't change the culture overnight on the time.
But over 510 years you can really have a dramatic impact on -- business we're seeing it firsthand at -- as well.
I mean that's an organization which was -- -- dire distress just 56 years ago before they brought in the former head of Boeing.
-- I also notice you're looking at your list it is the world's most ethical companies get a great majority of them.
-- base of the United States that just because a great majority of the companies are based in the United States or is -- reason for that.
Well first off I mean if you look if you look at our economy we've we've still work despite the rise of China and so forth we've still -- the global GDP is there's no great surprise there.
But second actually -- -- United States.
Has had -- a leadership role.
On compliance and ethics large part because they've been the first people -- the first country to aggressively enforce.
Anti corruption standard for example -- the foreign corrupt practices act introduced in 1976.
Now being aggressively enforced by Department of Justice.
And so these cabbies are well ahead of the curve of realizing that they need to root out corruption and compete on real business merits competitive advantages.
As opposed to bribing.
Two win deals and that that message is not become a global of other companies yet.
Now -- Alex this you just and you made my point over and over again why China is not on this list -- all because well they don't know what their financial statements they don't have internal systems that we know of and their corporate governance is as you said.
That's correct them and it -- Obviously if it.
-- it's a pretty strong statement -- seeing you're seeing China even in the news just today.
Rio Tinto has had major lawsuit where -- and employees arrested.
In China under -- -- investigation.
And Rio Tinto -- well you know what -- employees in China as an international company could have broken the law while they did about face today and they said well actually -- turns out our employees were accepting bribes.
So -- just highlights that the difficulty even of an international very well respect the corporation trying to do business in China.
I can still get tripped up if it's the wild west over there.
Great stuff thanks sounds we appreciate it thank god.
Thank you Palestinian foundered at this here in the world's most ethical companies I didn't think it was interesting -- only thing we only three Italian banks there they're only three banks.
And none of them based in the United States but now why I have -- list of one -- -- is from China.
That doesn't surprise anybody plus -- Americans face a fat again working for fish heads and rice.
-- in the -- that break we'll be right back.
-- the practices dot com -- Sanderson is here we're talking about flowers and could tonight.
Neither of us are horticultural majors play at all it's worth it -- -- to -- and I just feel I know nothing about flowers except that they died -- -- -- have -- -- a sign of life and knowing.
And it was my responsibility.
Now they've believe it or not anybody ever planted bulbs for spring time hey free lifter on their -- they just want to watch I'm sorry sir thank you and I can allow everybody living creature aside for my own children nobody should be rare because I mean I mean I can't keep things alive we -- -- -- talked to about it.
-- -- -- it I want fire officer observed for almost right -- -- -- -- -- and you have a big silver bowl with bulls and related growing.
Plans on your desk until I just wondered what you are growing there it seemed to me like I was a little -- -- -- who was a -- it seemed like something like that.
I've searched all over the opry out of Manhattan for the people and I used to grow them all the time tonight I even my parents house still has -- coming up on the -- it and kind of but.
So I ordered them from Denmark.
And what kind of an experiment and I had actress that landed -- in -- beautiful little things that are at Texas we hear about different.
Anyway and this -- that I was.
-- you -- you talk about another great business yet this actually really interesting story and I've been looking more and more into what situations applied to what we're seeing Horry here's what's happening -- You look back through the reception or over the course for the rest session.
There's a bunch of companies that completely fell by the wayside went away and shut their doors and -- Torre gone.
Circuit City might come to mind USA were brick and mortar.
But here's -- -- that's happening is now some companies that had cash on hand.
Willing to take risks they bought those brains.
Sat on -- and now that were recovering.
They're now putting those -- back out there whether or not -- exactly the same companies that's being called into question -- An example of this is Systemax and -- publicly traded companies by the way Systemax its best known for parent company of tiger direct dot com.
Which is obviously -- by Internet computer part six that are not that it bought the rights to -- If she called and deceased store -- and at this changed and that was.
CompUSA and Circuit City then CompUSA but for thirty million bucks Circuit City but for fourteen million bucks and that was in 2008 and 2009.
Now the economy is recovering they've been putting some trials out there comp USA they tried -- in Florida opening -- CompUSA stores.
He's very successful now they're opening stores in Chicago and Houston.
Now they're talking about open Circuit City Stores they've already open if you.
Think circuit city's -- -- mistaken you might have seen the Circuit City in your neighborhood close its doors.
But they're still on line there you go there's the website and there -- that you've seen as bricks and more tourists Systemax this company bought these names they bought the -- -- name during a recession.
For what the cause of the CEO of the company -- of the bargain of the century she has these solid gains.
Nothing that's alpha -- that the name.
Bought that means and now he's reviving the stores as people start to buy more electronic chatter I hear you but -- little -- -- G.
Genius and he Circuit City went away for a reason because people didn't like shopping there are sold BCS Circuit City -- and you may not draw that distinction all -- is a completely did this is my father's Circuit City why would you -- when you hate shopping there before.
And that's the biggest point that spring brought up in this story today just that's how Smart your host Chris -- and here yeah but that's the biggest point.
Did Circuit City bailed -- as a direct result of the recession.
Or was it is not the right business model and is it carrying that stigma with it now -- as this company Systemax tries to launch.
An open stores -- wet -- and is doing very well.
So this could be heard -- proved to be a case where people weren't shopping and meeting happening money best -- had the service that have people coming -- the Ohio.
Getting -- is that it's not -- -- is that what you're seeing is -- they closed -- they close one by me if they're opening him up somewhere else.
He might have not have the memory the experience of -- I had -- -- service.
This area like that have ever had went to begin with said -- -- it's a brand new -- there is Circuit City.
Let's condition not to mention -- as somebody who wants the cheapest price I behind me you know circuit city's open now online an -- able to put the bargains out there.
But I was gonna say Richard -- -- had a Systemax he said the current recession hurts.
But also -- out creates opportunities that would not have existed otherwise -- just a prime example of some companies.
-- -- starting to -- not gotten him note the economy has not of this recession.
They were very strategic and bought very low they -- both -- -- brand names CompUSA and does Circuit City for less than fifty million dollar.
And now they're putting out these trials so -- CompUSA stores are opening -- Chicago and Houston.
Like I said -- he made a run this in Florida and it's been successful -- Point -- and I think I think it's a -- flowers but no.
And probably probably just as competitive recent issues -- -- because again I do not have a green you -- you don't have.
How -- I have nothing -- they need water they don't even need dirt.
Did you notice did you notice that no there's no there -- no that's another -- there's no yeah.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The home and garden with -- -- Sandra.
-- you know -- yeah.
I could afford to learn because otherwise I end up killing plants and I have no -- backside of my house armed.
-- we have to go down to DC where apparently there is department that said Brian Kelly editor of US news and world report him.
Did -- great study on teens.
And the safest states for young drivers I found this fascinating because well I'm from New Jersey and we made the list.
Let me ask this first and foremost.
Texting phone calls all that stuff I mean kids are doing this we more than adults are they not.
As they are you know this is a new phenomenon really just -- the last year it's become particularly to texting piece of it.
And it's one of the factors that we -- that we've looked at a variety of ways that.
Some states do better than others in terms of laws and and you know the condition of the roads.
But certainly texting is is one of the new things some new -- are coming on the states that have a couple of seem to do a little bit better.
In the states that don't but I think it's gonna take us awhile to figure this one out yeah.
Brian you mentioned the methodology and you know a lot of different factors that go into it.
The condition the roads -- there -- things like that would you have a city -- in the country I mean what was the methodology behind.
Fight finding Theo and incomparable across all fifty states.
Right we first you have to understand teen driving.
Accidents -- -- is the number one cause of death for sixteen to nineteen year old.
So it's a real problem and we -- you know -- we take a systematic way of trying to understand some states do better than others.
And you can make fifty state comparisons on on the factors that we use.
That the kind of laws that states -- you know can you drive when you're sixteen or can you drive when your fourteen year you have to wait did.
I get a full license when you're eighteen a big factor in some cases can you drive at night.
Some states don't -- kids.
Drive with with other you know teenagers in the car.
Obviously you texting is a big deal cellphone use.
Things like the condition of the roads is is actually a pretty important factor.
So you can do fifty state comparisons we've we've we've crunched together about eighteen different factors and come up with -- ranking.
Good number one NY.
Well number one interestingly is his Washington DC which is something of an aberration because it's we listed as a state -- -- city.
They do have some very tough loss -- I live in DC I have kids who've grown up and learn to drive here.
And he's he's really tough you get -- you get a partial license when you're sixteen.
You have to drive an adult you can't have anybody in the car you can't drive after 9 o'clock.
So they're they're really pretty tough about it they also the advantage you know people drive -- -- that for increasingly California's number two play drive in California.
On but there are some pretty good laws there some decent enforcement people you know if you look at again as a percentage of the population lots of people drive -- the fatality rates are lower.
So states like Maryland do very well you -- New Jersey Rangers actually does have some pretty tough wasn't it shows that they youthful look.
Kids on the road -- they can do reasonably well have a lot of respect and -- the worst state -- South Dakota.
Trying to explain that to us.
Well you know he's you -- see this with a lot of western states the more rural states they let kids drive at a really early age.
Then on the -- they are not as good about enforcing a lot of drinking and driving laws there.
You have big long stretches of road you know kid who was driving a tractor and suddenly driving a pickup truck with a couple Beers that's -- a problem waiting to happen.
So it's not.
Completely consistent but you do see that a lot of these more western -- think -- just a lot more lax about this and unfortunately resulted what did teenage.
Brian you said that car crashes -- the leading cause of death among teens today.
Are -- is it drunk driving is it texting phones what is there -- common denominator in the car crashes.
No combination clearly alcohol plays a role.
But a lot of it is distracted driving.
You know driving at night.
Six kids in the car you know.
You know that the CD player -- -- and I thought.
It's it's all the things that we worry about when we're parents as I do.
We just try to find some ways that we could we you know we -- bring this down -- statistics but.
Behind it -- other stories as you suggest that physicians -- -- you know some terrible tragedies.
-- -- -- US news.com forward slash teen drivers by the way the -- to have that right Brian.
Yes we've got it we have it on our magazine this month newsstands and also our website -- news.com.
A lot of data you can push around look and see how your state did out compares we've we've -- a lot of detail and things you can do about it you know there are things that parents can do.
There's actually some technological fixes you know you've you've.
There's no big movement to try to make cars cell phone free zones.
There -- some technical devices you can use to -- the phone off so.
I think this is really just becoming an emerging field where people becoming aware of the problem.
Our -- obviously with the US news behind it.
All stayed behind it and are you finding that lawmakers are listening to what you have to say and and paying attention of these findings.
They are listening you know -- to Allstate was was our sponsor on this and Allstate for a long time has been very involved in.
Safe driving campaigns there's there's a federal law that they support.
On which would creating this sort of a national licensing standard.
On the to deal -- in congress right now a lot of people.
You know it's controversial because a lot of states say wait a minute we want the federal government telling us.
You know how to -- -- we'll -- -- driving driver license wasn't -- in the news of the movement on the other side so I think we're gonna see.
Some real could be very likely this session in congress on that law.
Frank quickly examined a few seconds dude.
Let -- forcing kids to take defensive driving courses and things like that make a difference at the end of the day.
It does you know parents are are the number one.
You know source here for information for kids and and when they take.
Or role both you know by their own behavior and by.
You know modeling with their kids driving with -- kids getting them out there with.
Defensive driving courses whether -- the teacher or sometimes and you know it's better to have somebody else teach your kids can.
That it does absolutely play a role parents are by far and away number one -- -- people have to realize they can't rely on the on the government to fix their problem here I.
And thanks so much look at nonetheless -- said he in US news.com.
Forward slash teen drivers check it out I -- that's good stuff thanks Brian.
Thank you Brian Kelly editor at US news and world report in DC -- it -- in the safest teen drivers in the country that visit where are we are done we'll see tomorrow.
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