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-- -- -- -- -- -- -- -- -- -- Some finality of this and so for honest.
I think Kelly for this month does say you glimpse -- can you see that there is that a little lighting on right there is Fox Business mountain.
From my -- crowd.
It's special you and I have a drink little and -- special you know.
-- -- and now finally ensuring yes lucky you.
-- exactly you know a bit better than it was this morning we're on air when housing numbers broken out pretty much the end of -- we actually full -- Underneath.
101000 for a brief second came right back up was right around 10 o'clock when that.
Basically worst housing numbers you've seen in since 1995.
On new and -- all home sales came out.
You're right that was a disaster was really Katie -- the -- at that point down because he was really it was an ugly sounding number it was like last Thursday with the weekly jobs number.
That 500000 last Thursday as the ugly sounding number to get below four million on an annualized basis on these existing home sales.
That was a really ugly sounding number dropped 27%.
Right on -- July of last year.
I mean -- that's a site that says that absolute.
And so it was kind of like everybody sell sell sell and then you do I guess you the sense of there was a little bit of okay.
It's bad but.
How much punishment -- -- worse is that we really expected to be it's a little worse and yet the market sort it kind of came back a little bit.
But we were expecting four point six million we came in around three point eight so.
You're right we were expecting a little bit better but I think to your plan on settled in with look we knew it was going to be crap and we -- -- -- -- this crappy but we knew it was going to be crap.
It was basically that that first time home buyer credit that repeat home buyer credit pulled.
The dismal sales we had you know I -- the one thing and we don't really talk about was.
The Clinton duel that or or the credit.
The credit solidifies the fact that they weren't that many homes sales people out there to begin with you because it -- -- winning more people yeah -- immediately saw the fluidity if you spread out.
The the U.
Free credit expiration -- -- it wouldn't be great on the any of the months that's enemies those innocent decent before the expiration.
But but yeah I'll grant that out yet he sped out it would be like -- that sub par.
All across the book you know.
As analogous at ten months -- really sub par right and you're speaking -- loves.
One of the Rand rose today on -- company Joseph Grant Hill Randi said I asked -- -- all right well when we catch up because OK so you have despite.
At that -- game was solid cash for clunkers was spike went before expiration.
Then off the cliff after expiration but then -- ticking back up over the last few guys so my question is when did he get that ticking back up slowly starting to stair step up.
And he was saying two to three years down the road before we start this -- to see that and thousands that's that's really bad.
Now as depressed.
For a -- -- time he got to wonder how long this is gonna weigh on the economy catch 22 along the economy weighs on housing.
-- our founder of all of our financial group joins us right now from Charlotte.
Chris what do you make of housing in that particular and in what you heard today in the existing homes cell report.
Well I'll tell you what.
So much of our economy over the past -- two decades has been built around a rising housing economy.
You know people have kind of mortgage their futures on their houses and unfortunately.
The crash in the economy to crash in the housing market and now -- bad news -- tell you what it's just not favorable at all.
Unfortunately when we get bad housing numbers like what we're seeing right now or the talk of a slow down -- the potential talk of a long term slow down.
Or long term recovery I mean that's just doesn't bode very well for investors at all and we see this just as -- continued sign.
That our economy is going to maintain a very very weak position.
Maybe not that double dip recession but there's a lot of fear out there and I think this housing market this just confirms it.
-- -- not necessarily in the double dip camp -- -- certainly it -- in like you're in the flat bottom slow and steady cam.
-- -- there's got to be other things though that worry you rate we have an election coming up we have tax -- tax cuts going the way.
Does all that play into your big picture it's an area.
Sure sure when we're inviting folks the main thing that we're looking at as you know there's so many aspects to this current economy that are just really really damaging.
Hey you know if you'd mentioned we've got some elections coming up in November.
November depending on Republicans Democrats it it it will play at all on on what happens with the market.
Republicans get -- I think there's going to be a short term burst of kind of some excitement but really career realistically as we look at this.
I think long term people are gonna say can they really do anything different anything better and I think that's something we've got to look at.
The other factor we're looking at right now and -- mention it taxes.
The tax bill that's getting ready to sunset at the end of this year getting rid of those bush tax cuts.
This could potentially if it does not get resolved soon could be extremely damaging to -- very fragile economy.
Why you said I'm not necessarily in that double -- camp I'm not gonna say I'm not in that camp.
It's just right now lied -- hey you know I'm an optimist I really want the economy to perform I think there's there's some good signs out there but realistically when we have the Fed.
-- saying -- we've got in trouble you know a few weeks ago.
James Bullard who had mentioned does the that we had the potential for -- Japanese economy.
Then yesterday we had the talk of and again the slowdown of the economy.
The Fed just mentioned today the rise or the potential rise of a second or -- double dip recession.
There's a lot of fear out there.
And and the the consumers out there just they're they're not spending that the unemployment still high all of this together we're just in some trouble Chris how much do you pay attention how -- -- advise -- clients when the Fed speaks because.
As you mentioned today the Wall Street Journal report that seven of the seventeen fed governors are uncertain about stimulus moving -- -- what the -- -- do mean that uncertainty.
Has still also -- you know there -- another -- to the markets.
-- -- sure it is said that nice thing for us we work specifically with investors that are about 55 to 75 years old and so they're historically going to be a very conservative in this investor population.
Now how does the Fed affects somebody like that we always look at what the Fed says -- we take it with a grain of salt.
While the Fed is going to let us know their feelings they're not always going to be.
If it's bad news or not always gonna be as up -- as we need him to be -- so when the Fed does come out with some bad news.
That's actually where we begin to not necessarily ducking cover but we look for strategies in positions and things to do.
That are going to be a little bit more defensive rather than than looking for the economy to do anything in the next number of years.
Snow is an about face -- his last finally heard from the Fed we thought maybe they need -- we did it now -- realize they know nothing still.
And then -- here in you know where you know what's your one great play right now.
-- my one -- I've got so many great plays and now I'm just Kenya.
-- the one great play there there's actually several one of the areas that we really find compelling but it's also specific investor that need.
To look at these areas would be in some of the -- of privately traded reits.
Again working with retirees their biggest concern right now is going to be regularity of income not necessarily return.
Or growth on their capital.
Privately place streets allow some of that the trade off as we have to watch out for liquidity you know obviously you don't put too much of your money in any one thing.
But -- the real world there's really two compelling areas one would be the area apartments.
And the other would be the area of health care trusts.
Both of those right now have a demographic that's actually.
Pretty strong supporting supporting those two areas for consistency of return.
You know on a monthly quarterly here.
Yearly basis for our retired investors great stuff Chris thank you sir thanks thank you very much for so -- founder and -- -- our financial group joining us.
And Charlotte you know we mentioned housing needs to -- that actually -- is gonna join us on the other gonna talk about this.
Existing home sales report that was really borderline disastrous and he's that you might even call -- disastrous.
This morning we will talk about that -- it's affecting the markets right now to the tune of 83 points to the downside we'll be right back.
Welcome back foxbusiness.com live -- -- Chris -- Dow -- now only down 77 points.
We'll take it it is as -- -- -- its way back up may be as could -- you pointed out earlier -- in markets to settlements and -- Look we knew it was going to be crappy list his economic does -- ready but as severe -- here I didn't dive more in today's and yeah you know -- of -- -- -- -- Adam is that big inventory is now twelve and half months -- That's the key is animated take away from here is let you jump ahead and I'll let let there -- no no no no look at that's the relevant thing here.
Tom what do we exactly from the National Association of Realtors press release because they tried to spin this thing is like -- -- but everything's okay.
And Lawrence in does that a lot -- I love is going to be for you what to tell you about because some rough month inventory I mean and a healthy world threats around seven -- not exactly so.
Total housing inventory ended July increased 2.5 percent.
23 point nine million existing homes available -- Which represented twelve point five months' supply at the current -- pace up from eight point nine month supply in June.
Runs world inventories still twelve point 9% below the record of four point five million in July the link to this saying it's still below the record but.
They did a couple of things that are going on right here.
Distressed home sales are unchanged.
Right foreclosures are unchanged accounting for 32% of transactions in July.
This the market still being flooded we.
Properties which are going into foreclosure being abandoned by their owners and that's driving down prices side despite then they they say that the median existing home price actually went up 282600.
This too much inventory out there.
One quick quote from -- and he's the they had the chief economist for the National Association of Realtors.
He said quote a pause period from home sales is likely last through September that's in the press release he said on fox business and 11 AM that's going to be two to three months I mean.
-- the time to sell was the summer is -- that is the big sales time right and so said this probably is gonna change -- tell if it does change until January.
Then the way they're trying to spin it.
Which is really interesting is and I'm gonna read again exactly from the -- Even with sales pausing for a few months annual sales are expected to reach 500002010.
Because of healthy activity in the first half of the year.
The healthy activity in the first half the -- was dare I don't know if -- call a healthy but it was there because there's a tax credit.
Tax -- gone so.
Do you have knife like -- we talk about the annualized units of five million units how do you get there -- way to get back there again when that's already done.
And as Tracy was talking about -- -- about in the last segment that spike is now on the downside of that spike.
And we're not gonna get the cash for clunkers where we're OK we -- -- -- my -- -- -- kind of enjoy that you might but I haven't talked to anybody yet that says yeah that's gonna happen at the edited -- -- -- in the beginning to doesn't -- what -- -- we you know some analysts were -- these numbers saying is that it's not so much -- -- despite having to drop as a drop in the drop.
Is that we pulled forward sales forward that would've taken place because of the tax credit -- we rob from Peter to paper yeah.
Yeah we're talking earlier don't have much to rob from to begin with -- great example is -- first time homebuyers purchased.
Represented 30% of the total sales this time around last month nearly 43% doesn't apply that they were also in the mid forties -- -- -- about like.
100% of all first time home buyers came out and maybe get a tax credit it wasn't that much to begin with so they're pulling from -- Or to pay below what however this stupid saying goes from an interview and any Peter leaders I'm ready for right the idea that the any visitation and I was a boy so an -- money and a tax credit to bump a couple of sales.
We're not -- And -- that number I don't know -- they'll have a good.
It has been this number with a happy -- I -- -- twelve and a half month supply because he had he had troubling for the last year that's at all with commanders at every week we've been coming every month when you say you know what supplies getting close to six months that's great that's what we want six months of not necessarily cut and -- -- back and it's gonna keep growing by the way I mean the year fall there isn't a beautiful selling season -- -- no I -- this spring and summer -- -- -- it's gonna keep growing potentially lead but the other issue that that gets compounded here.
He's if you've got a job offer in another city but you can't sell your home you don't go out.
So it today it's at the domino effect that stalls the economy but it.
He's going and going out of when I wanted to make this morning I'm glad they sit there they being likened the brokers of the world and say it's a final opportunity.
Well this time opportunity did you sell your house death and you can score -- -- -- -- -- -- Let us know if it was an accident had it ready the percentage people who buying cash yet and ends in their -- -- 90%.
You that you represented 19% I believe -- -- -- the market by market somewhat like we thought about south lawyer that cash is the buyers it's tremendous at a junior gambit to you know for the be careful and be careful in South Florida and be careful in Nevada I'm not Americans buying American property for -- -- Look it's not primary back to the greenback I'm I don't ever come from Brazil disappointment.
That's -- -- -- -- get us.
And then -- and I -- Yes I'm the senate -- investors are buying a property that's what's.
No but Cliff Floyd in -- they'll fly out properties and it raises the via prices because demand is going -- the -- coming -- -- Or Saudi or into -- -- demand is picking up so.
The neighbor's house is worth more the guy down my street houses -- I -- they hear about aren't about hasn't been kind.
If one is gonna let that the only thing the -- is going to be -- as you know.
Middle finger salute many really -- that so let my try to go there but a real quick though you know coming down the pike if you're looking forward -- for the housing market pick up.
They're going to be tackling Fannie and Freddie -- in the next congress and you really think that's the kind of atmosphere -- -- let's go buy a house.
It's going to be tough stats thanks did.
That's apparently -- as of the date on the existing home sales -- from the National Association of Realtors but some meals were talking about the -- over the last few days.
This whole situation go on a golf right now where you have Kenneth Feinberg now.
Drawing lines in the sand if you will maybe be tougher.
On those who wish to file claims against the -- and -- what we originally thought might happen -- -- this job from our -- -- and it's not -- not easy also he got to know there's a lot of fraud here's the thing.
Senior joins us -- special -- school matters a governor Crist down in Florida Steve welcome to the -- Thank you thank you good to be here -- real quickly -- just sort of paying out the two or three biggest issues right now that we're having because I think most people -- -- country would say.
If Ken Feinberg is being tough as long as he's being thorough.
I don't necessarily have a problem with being tough he's gonna prevent fraud and he's got -- those who deserved to be paid.
No question about it I mean there's going to be fraudulent claims as abuse and every system Ken Feinberg has a great track record 9/11 Virginia Tech he's not.
-- -- -- kid on the block he'll do very well -- that in that regard.
What troubles me most was the initial.
Outline of what the idea was that is a twenty billion dollar fund which wouldn't be capped another movie in essence of the damages exceed the twenty billion dollars.
He will be replenished by the wrongdoers.
That seems to have gone away.
Aspect that wouldn't just now getting which seems to be Ken Feinberg nuance is that there may be finale with the claims.
In essence if you make a claim for a long term loss you walk away with a release being signed in your legal rights extinguished.
Those are two aspects that we weren't clear on and certainly I was convinced it was the other way around there would be no cap and the legal system would remain intact.
Right because what he's saying is if -- coming -- me.
For money and I pay you -- you cannot then go back and try to sue BP again basically saying you're double dipping.
But what really Tracy what that what that what that.
Creates is a problem for us here in Florida because as you know there's a great debate now you know mother nature didn't really take care of this oil spill.
There's still oil plumes out in the Gulf of Mexico -- the the the determination of damages is the most troubling aspect -- mean how he asked for something when you don't really know what it is so.
There's a premature aspect of this -- as a state of Florida do not know fully what our damages are therefore we really can't seek.
Permanent damages and a sense of finality does that make sense.
-- -- any other part about that is an immunity -- the environmental.
The extent of the environmental damages because he just never seen anything like this before.
You also don't know the extent geographically in my understanding is now.
You know you might have somebody in.
Whether it's Clearwater Florida whatever -- KCB a hotel owner who says look I was gonna have.
Our convention here I lost vacationers because they lump everything in with Florida and said I'm not going to Florida at all even though.
I'm miles and hundreds of miles away from with a still might impact this to -- very difficult for Feinberg to determine.
Well I don't think Feinberg really is equipped or or ready to make that determination because that has to do with proximate cause then as you pointed out.
It's much easier black and white oil on the beach hotel suffers hotel gets -- Beach in Clearwater -- Naples Florida has a convention book.
The people that are gonna -- convention tell the hotel we're moving our site to California because we don't want the perception of our conventioneers to be blighted.
By -- potential contaminated seafood.
Potential oil on the beach or tar balls so we're gonna move our our convention.
That loss is clearly caused by the spill is that a Feinberg -- lost I doubt it not from what I'm hearing so.
-- and in the bigger aspect with regard to the state of Florida is there is no geographic impact.
If the panhandle tax revenue diminishes it will affect all taxpayers throughout the state of Florida.
And our property evaluation W top that I heard the other her other saying you talk about buying homes.
Have some of those foreign investors come to the panhandle I understand there's a lot of condos for sale.
Yeah I had no joke.
OK but so now let's talk about at -- you should actually be filing for one of these claims.
-- three years right from the spill to get your -- -- doesn't make the most sense to wait this out.
Even though I understand so many businesses need the money today you just don't know the extent and you didn't -- right now.
Well Tracy on the trial -- as you know and one of the things we always cautioned clients it with regard to settlement.
Is to make sure there's a full awareness of what the extent of the -- -- our cause there's only a one shot deal -- and one of the things I worry about his feel for the people -- don't have the luxury of waiting the people who have lost their jobs of their livelihood in the -- small business owners.
They got the following and got -- file now with regard this -- and what we -- and then we -- with the White House and talk with our congressional -- great addition.
We -- the idea that there be a dialogue for a sovereign fund.
That is this coastal states.
Claiming not in competition with -- mom and pop stakeholders.
But climbing as a sovereign because the effect in the impact is far different than those of the individuals.
-- -- thank you so much fear inside very juicy stuff wanted to keep our eyes on it.
Our hands are full -- -- believe I'm sure.
They use these -- -- -- show special counsel on you'll still matters to -- very -- down there in Florida obviously it got there and -- a primary elections going on as well in Florida among.
-- just so people know so emergency payments must be submitted through November 23 and you do have three years to file for a lump sum final damage payment.
It's important that people do with it was to do but you know at some on the boards just -- it's it's interesting that they're trying to convince you.
If you take this deal it's it's better then going after BP and you you know what you just don't know and it's unfair just to make a statement -- and navy is.
And the united way about your legal fees not to worry about waiting years to be paid -- Soledad -- with -- ending decades of someone's and you get your money up -- and as you said these -- businesses that are operating.
You know one month to month basis they got to make payments everyone's been saying look I gotta make payments on my bullet from a warehouse -- a -- now you have the opportunity to do that.
-- -- -- -- -- -- -- Either rolling the dice -- older guys that the environmental impact won't be worse.
Then you than you think it is and then Ken Feinberg of the BP thinks it is in wanting the payments.
Thinking of the environments.
Time -- dry -- well -- -- the environment -- to the environment and Central America South America.
These coffee producing nations are adding weather issues and it's causing the price of coffee Ohio we're seeing this -- -- commodities everywhere weeks.
Is going to the same thing with the wildfires in the droughts in Russia.
We future -- -- -- highs but coffee hit thirteen year highs yesterday before settling -- by the end of the day.
And in Tracy really dropping today down 7%.
Which is this the highest one day drop the largest one day drop for coffee futures going back to march of 2008.
Yes soft commodities all alive place well because just -- -- it's up to 30% run up an anti -- 34% this year and I think he is.
Well you know maybe things aren't so bad with the Brazilian crop maybe it'll be okay -- sell off taking profits because they saw it.
With wheat and corn in 2008 and India ethanol boondoggle corn -- -- cliff.
Sugar last year all the terrorists and it really showed -- go to the room and assure shortage -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But it just goes to show you we've already had JM Smucker with folders speaking of Russia Moscow and -- and and I grabbed a with a Maxwell house raising their prices for coffee isn't coffee on the shelves Starbucks last week saying -- -- an Ohio you've nailed it and pass that on other guns -- though do you think it's.
It was sort -- plastic does it mean that just gonna present love them so that they could just completely addicted you are.
Yes but the man is in -- lasted for coffee.
Like it is for gasoline and maybe analogy to some is that we paid more than four dollars a gallon for gasoline we pay more than four dollars and young we -- -- more than four -- we pay four -- prevent the for coffee right so we would pave the coffees -- -- -- gasoline does and we will pay it no matter what.
Although some clubs a club that could actually run your car on gasoline right now I need those every morning so there is yours -- thought -- -- -- be careful and and you can play.
And the -- shares -- might be wrong on that.
In the morning and loving being here half if you think it's just now only like the the -- at daybreak the unit that.
On the back -- the dot com live trees -- -- got a Dow is inching down a little bit now we're down at 93 points again it was all of those having numbers.
Pathetic collapse somebody used earlier today either way it's bad and I got a.
Believe president of the fall further because of all -- all but expectations and failing to meet expectations are already really low expectations on housing data certainly means a market -- -- and that's -- we're getting what's what's actually selling off and a Smart.
Yeah we need a higher bit I don't -- to Alexandria but in a lot of fast moving down and acted.
-- and we talked about this earlier CRH.
Is an I was building materials firm.
Man reporters -- -- 7% drop in first half problem for the first half.
This just plays into our housing market basically globally housing is just a disaster.
So this is the Irish luck of the Irish market fell about 6% today on this all those Irish stocks builder stocks -- It is spread into UK all last overseas markets not doing well on this news and obviously we're not doing well here -- either building materials like -- I was just gonna make a comment like and I thought that would be sent -- Deon minor -- okay that's why -- this and I -- -- -- Many strikes -- down 10% today in fiscal first quarter earnings didn't -- 87%.
Following year earlier but revenue surprisingly -- and -- weakness for the deep.
And they my hands with those earlier I know that could be part of this.
-- Wasn't put there issue -- -- -- for not knowing and it's it was they acquisition that made an acquisition in the defense was part of that acquisition in the wasn't grades so that.
And it wasn't wearing Bradley in the challenger was gonna go through of them soap -- from.
Down 10% nevertheless big lots though down was down again and this is -- -- met the day quite frankly because.
Net their net jumped 37%.
Second quarter earnings up margins are better and they raise earnings forecast for the year we talk about dollar tree last week I think it was.
They rocketed all these low and stores are doing great stocks down them.
Don't move you think these -- it's a case of love valuation.
Well I think they've been talked up for lung and brain -- that's it's propped up -- people see the market in general as overvalued.
And so these high flyers they also want to take a little profits off the tables probably case.
-- that you there was a -- to earnings to its outlook for -- Burger King.
I'm gonna -- and nine fake it I don't know anything about Burger King except that they make apple Fries it's the whopper if it's not the big Mac it's a -- in the -- yeah that's why I confuse -- -- It's like one -- flame broiled one is fried.
In the can you honestly I think one is on the -- and enable this step by both of them before they given to you when you're a good drive -- that you get that this excellent remarks in those -- What you insults the lead him.
And that creates it was an angry ticket receipt -- urging -- on Donald's.
I believe I still breaking the earnings -- two cents revenues actually were a little light.
Now they -- that worldwide convertible sales were actually -- -- a bit North American sales were down one point 5% they're saying they're seeing it's challenging consumer environment.
And I say that.
Garbage because Malcolm McDonald's as soon know we will have what she counts -- what's what's challenging obviously is the menu.
Yeah look it's -- -- challenging environment the other burger places.
-- well I did none of the burger battle and it's the I think if you look at -- stock chart of McDonald's and very few they're going in opposite direction and same exact opposite directions over the last couple years -- shark that have a look at same store sales.
Last month McDonald's same store sales globally up and in this -- up 5%.
So what is it what is it -- because McDonald's is doing coffee really happy to explain that.
McDonald's is doing all the other things.
That is the very -- let's make it -- to say whether it's these -- these.
All these things McDonald's has a leg up Brett this McDonald's is still better than everybody else and breakfast the everyone's trying to get a break as he was a subway trying to get -- -- through the last six -- yes that's very everybody wants breakfast the beverages.
And Burger King.
You know that they're just the Burger King actually the new whopper bar the trying to get back into burgers and say look we -- -- better than everybody else that's what we're focusing on McDonald's isn't the McDonald's -- going so far.
OK two things one that wasn't run up to big lots earnings hence the sell off today and to the Burger King McDonald's charts are comedy -- like this until.
And the -- slowly accurately.
-- Burger -- dips McDonald's goes up.
I immediately think it was a library -- is -- today is that is that think he is they've just gone down too far.
Meaning they're not that bad compared to McDonald's they're worse there's no doubt about it but maybe they're not this bad and that's what -- get notable.
Interesting about again I kind of thing that's a lame excuse and finally diamond management technology can -- this really caught my -- -- 30% today.
-- house Coopers is gonna buy it in.
They just we've been seeing a lot of consolidation in the console thing.
Industry and this is just more of it I remember when I was with I was with Ernst and young another one of the big firms.
And we had consulting arms and no one can actually think.
That would consultant known me included everybody's a consultant right you know right I mean most days I suppose I'm a consultant that I make breakfast -- him.
All my one thing you can talk about -- housing depressed me know that a lot of other elements of the economy depressed.
Travels actually held up pretty well -- this -- travels really held up well Jeff Flock joins us right now.
From -- Chicago the nerve center for Orbitz -- how does -- able to do this in such a difficult.
Economic and I'm good to have so much success.
Well I tell -- -- Like you know people like bargains when times are tough onion and you know orbits.
Is school you're clear bargain.
This is the nerve center or richer looking at this is the air traffic control center here -- And end all be on the glass in the shaded area over the areas -- -- -- I like to think of it is the nerve centers you're looking at where this with the systems doing all this sort of thing.
Now our viewers may know Janine from previous experience here on the Fox Business -- -- -- is the senior.
Senior travel -- -- national editor Chris -- runs this air traffic control your former air traffic control you yes I -- and -- orbit a lot a stress.
But let's stress didn't depending on whether it's crazy travel season or not.
Coming what's on the board appear to anyone -- -- looking at on this that border here.
On this screen you're looking at the air traffic on the -- That -- the country where we -- real time playing absolutely that is.
We'll take a look over here look at.
-- new York and Newark and Philadelphia man holy -- You'd you'd get a busy icici get some rain and and we hadn't.
Travel when problems if there was a storm system moved through yesterday and -- -- the remnants affecting travelers today.
First ever live pictures by the way inside the -- orbits.
Nerve center but what people really want to know about his where the bargains out -- where are they went well for heading into late great week.
-- just week and a half away.
We're seeing that nine of the ten top destinations which are all American cities by the way everyone staying here domestically -- the holiday weekend.
I -- the top ten cities.
A hotel rates are under 250 dollars per night on average so we're seeing that they're fantastic hotel rates out there for the holiday weekend not so much your true.
Not so much on the air side and that's where we're seeing that travelers are really looking to the hotel bargains how to make up for that difference.
And we've talked to Barney harper do you see your -- so on the business network last hour talked him again here shortly coming up.
You're big pushes hotels right now because you actually make more money and -- we do we do and that's not only do we make a lot of money in the -- -- That's for consumers are really finding the bargains right now is in hotels and this whole concept of -- came.
You know -- that they say welcome to get the get a better deal.
I'm suspicious of that always why should I not be suspicious of that what's the secret to why that's a better deal.
It's a better deal looking at the package but you're airfare hotel and even your car rental together the package we're able to give you better prices because.
For example the hotels have access inventory they need to sell -- hotel room so they're willing to give -- -- discounted rate.
When that package together and you don't see just how discount at those particular hotel -- -- -- no I think they've got a rock bottom price they don't want you to know that you're actually getting it for less than I don't want to know just how are below their rack rate they're going.
To give you that rate for so you're able to get a fantastic deal.
I packaging this together were you only see the total price.
-- and that very interest and guys that you know I didn't really get why that was the case but that sort of makes some sense to me.
You have a lot you don't -- -- think -- -- at a flea -- hotel there Jeff Flock.
Hey listen I I guess I'd like to stay at motel -- -- but -- don't even listed on orbit that's where I would stay if I had my way it would -- like you know something where.
Where Tony Perkins has got to commend them you know -- in the shower take place.
He walk up motel is just.
Bond fond childhood memories re walking -- and your cards right outside and you smell the fumes at night from the other people are in that fat.
Jeff yeah -- put.
Quarters of the -- -- back then it was Nichols in the bed and that that would vibrate that sort of thing that.
Apart back there tonight mother low Canadian meaning I don't know was the -- -- the our parents cyberspace I gotta go Jeff Flock -- of its headquarters.
Of -- -- everybody thank you and me.
You -- go to Chicago and now and I'm gonna -- my composure because.
We're talking it.
Steve -- consumer finance media director and -- bankruptcies are up.
Now -- -- -- when these numbers broke this week.
Vacancy numbers -- out but -- consumer bankruptcies in particular are on the rise what's going on.
Well people are having problems and -- if you've lost your job and you can't pay your medical bills is as a function of having lost your job your gonna have problems.
Steve I see all the time commercials lawyers saying bankruptcy no problem it's a grade option.
Played really seems I -- sleazy business in the end it just doesn't to me it seems they let it -- I'm guessing bankruptcy.
Is not all walk in the -- good day at the amusement park it can't be that -- -- an option.
It really depends and it's not something you want to enter into lightly that's for sure -- tell people to consult with an attorney.
The offers that you see on TV could be -- -- -- so.
It can be a great option for someone to start over if they've really dug themselves a hole but at the same time you have to realize that coming out of the bankruptcy.
It's going to be difficult to purchase a home to even to get credit get a credit card so you have to think about those things.
Right so we have as of June 30 year -- -- -- by seven million bankruptcies is up 20%.
Year over year and two -- by the bankruptcy rules were changed in the notion was to make filing for bankruptcy.
Harder -- I'm wondering what happened in the you know our people does that much more willing to go through the methodical steps to file -- is -- Well I mean you do have to jump through quite a few -- typically have to see some sort of -- advisor before you are able to start the process.
You know one of the upsides is you can't file for bankruptcy for several years if you filed previously so we're -- -- that sort of repeats.
Process but it's.
People in many cases simply feel that they don't have an option and they want to be able to start over they want to be able to some day.
You know by new home for the family and if they can put those past -- and and past failures to manage their credit history in a positive -- behind them than they can do it.
The -- he's a former -- she knows all doubts after seven Chapter Eleven chapter thirteen.
What is the everyday person like myself need to know about these different chapters now they would work in so personal bankruptcy filing.
Shares so -- a chapter thirteen.
Would allow you to potentially retain your home.
Which -- chapter seven typically would not so if you're able to you -- in arrears the the past due balances and your mortgage as well as make new payments you know that's the -- option you're looking for.
And it's also it also remains on your credit history for a period of seven years -- a chapter seven remains up for ten years so.
That's -- the basics associated with the different types.
You know what I think what's changed is this stigmata and surrounding bankruptcy.
When we were kids if anybody filed for bankruptcy it was has touched nobody -- really -- is like the -- -- was bringing -- rolls down the street and everybody was helping now.
These days it's cocktail conversation and people are quite proud of the fact that they filed and they have a clean slate in the server again.
Right and you know I mean I think that many of us know someone who's been in that boat and did you know they're not necessarily bad people they just.
For whatever reason found themselves in a hole that they believe they were not able dig out of and this did allow them to put all of those past.
Credit obligations that they were unable to fulfill behind them.
And start fresh and you know I personally know a couple people and and they made a clean start and they're moving forward their lives be invited her -- -- -- -- -- is the option it is is the in my only way out.
Well why needed -- and before filing to make -- -- got all my ducks in a row.
Well he had the first thing you want his you know his consult an attorney you know ideally do not respond to some sort of television -- -- at 10 o'clock at night get a referral from someone.
Then you know what you're getting into.
You know you're gonna need all your financial records in order again need all of you know your credit card records.
And -- You know you gonna be put in a situation where you're going to be under the microscope so yet to be prepared to answer some tough questions.
But at the end of that process you should be -- and better position than during the -- He got assets from a you know all different places and I and I hate this.
Used the words shelter but the for going into bankruptcy are there ways to protect things as opposed to just having everything be pulled into this.
There are ways again here for years advisor and an eternity higher for the -- -- should be able to advise you about that.
You know typically people.
As it relates to things like credit cards which you've been delinquent on for 306090 or more days you want those included because you don't want them to be.
Reflected as unpaid or you know as delinquents is moving forward so most people want to include most of those things -- alone as you know probably.
Cannot be included in bankruptcies -- you gonna continue to have to make payments on the student loan that's a positive thing because it helps that a -- a track record of payment history for you after the bankruptcy.
Which is critical because if you want and then be able to apply for credit card you have to show that coming out of bankruptcy.
You're able to make that sort of installment payment month after month after month so that's that could be a positive thing for someone.
-- that's good information thank you -- very pertinent this time that's for sure.
Okay thanks thanks -- gas consumer finance media director at transit union so obviously if you.
Good -- first of all work with your creditors I mean call call as much as it might be a pain in the neck called them and see if it because they will work media.
The last thing they want is for -- to go to bankruptcy.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I.
I had that I asked people out there in cyberspace than they filed for bankruptcy and -- responded back that you know Abe Lincoln did.
He's right in Lincoln did declare bankruptcy at one point and look what happened there then so.
-- can Wear down I and I will have more open mind about it as a Paul -- sustained.
Don't know who are second.
In the five part series on Hurricane Katrina five years later comes up next you don't want to miss -- we're talking real estate and loans will be right back.
Five years since Hurricane Katrina came ashore in New Orleans and we are -- doing a series here on.
Fox does not come alive five years is is far too large series New Orleans.
Five years later in Jordan who -- -- -- association of realtors joins us right now.
Joseph I read an article -- newspaper last spring in -- said that.
The -- loans real estate market is much healthier than in the rest of the country.
Explain how that could possibly big.
Well I think the thing that you see with New Orleans is first off our tourism has almost completely recovered.
We have other sustainable industries bill all -- -- market hopefully that'll continue at the port.
And of course the infrastructure of New Orleans is still being rebuilt -- -- tremendous fashion.
Submerged roads new bridges.
In -- course all of that funding helps us remain viable.
So what is what's the state of the state down there are you seeing activity are you seeing people come down and pick up houses again condos.
Yes absolutely I think the joke is every time we seem to get our wheels rolling something else happens the oil spill the you know in end of the first time homebuyers tax credit.
But we have a healthy market our prices have really kept per square foot to remain pretty solid and we're happy.
-- there's definitely a slower market I think that's part of the national economy.
But we're way down the list on foreclosures and Mario's in short sales.
So I'll and -- we have a great market.
So you obviously probably -- -- had a lot of new homes to be sold because he had so many homes that were condemned and -- not down because of the flooding and whatnot.
It is that the case and what is that a part of what was so attracted about it was at did just that old almost from the ashes right or you know rises up new neighborhoods.
Absolutely I mean it you know I think what we're starting to see is finally a leveling off -- -- to believe that the returning home owners have reached their peak.
And so now it's pretty much what -- market used to be pre Katrina some people move and in some people moving out that some people moving up.
But no there's a tremendous amount a new stock fully renovated.
A lot of people abide vacant lots because there's so many of those -- building their own homes.
So -- in that respect I think it's a great great place to come and and you have a choice of a lot of different.
Opportunities to own -- home.
But what about the financing of all this -- people be able to get loans -- are they showing up with cash how are people paying.
Thankfully you know loans are under 5% right now in your residential market and people are.
Pretty much being able to get loans insurance is once again readily available that was always a difficult.
-- for a buyer to two overcome.
So all -- -- it's it's pretty much business as usual as far as acquiring money.
There isn't a lot more stringent C by the lenders as to your credit -- You know they've added new guidelines they rerun your credit report five days before the sale that just -- little tightening up but.
If you know if he should own a home you can own a home.
Still attacking government assistant special government assistance is available from -- looking to buy homes in the war on the way it on the flip side of that well along with that.
Our home builder government assistance to say look -- we're gonna support you going into these neighborhoods in rebuilding.
Well the most government -- we're saying really FHA is really an attractive program.
They have a lot of different methods of financing there's a 203 K.
That it gives you the ability to acquire the property and renovated.
They have guidelines that are who you know helpful for.
Entry level people and people with less than perfect credit.
And that's in that respect to government is very helpful.
Just -- intervening and sharing your thoughts with us today my pleasure thanks for having me Joseph -- new Marlins and -- about an association of realtors.
Part two in our five part series and now in New Orleans is rebuilding itself fighters they can't believe it's five years ago I say exactly where was women -- -- -- in palm.
With -- -- -- whole world let's ballpark it was.
To those unemployed.
Anyway the analyst told employed -- been fired from radio station.
So I was I was an influence.
That's like five or six months you can look at that -- you go to my info go to break we'll be right back.
The all -- the -- with a sports is going on her back down 96 points right now we were looking OK as you can see just a lot of red.
We can't get out of our own way with this market.
On the and we just cannot seem to find anything positive and I got to be honest.
Housing today was one thing GDP on Friday is another.
And the monthly jobs -- for the next Friday is another.
Well when I'm not just because everybody notes can be of -- I -- -- the -- as it is the last it can be revised down and it was gonna go with the predictions of GDP now for.
The next year and that those -- -- -- be revised down -- gonna say -- 2011.
We're gonna see growth that 2.2 percent in anyone's gonna freak out he could be really bad.
-- to -- the jobs on Friday Adobe prophetic could be really that.
Also -- his -- last -- as some our sort exactly yeah exactly very -- volume in half and -- -- the last -- and it will tell him look I they finally goes to see that a year ago with the with the depth of our beloved Michael Jackson -- -- eleven pages that.
Pop icon died about a year ago and to mark the anniversary if you could believe this this is why this caught my -- Big coming out of video game in November it's -- the experience.
PlayStation and the DS even have it.
And they deemed helps you learn his moves so it helps you learn how to move on duels we'll handle all of his moves some of them okay thank you.
-- the but really -- game and you compress really people -- -- -- and they come month.
England and buy it by the Jackson right now and I think acted as if that's not enough there's an album of unreleased material due in November and -- circus so -- show.
I am not an iMac and up.
And -- -- Millen joins us right now -- retirement investor services at the Principal Financial Group in Des Moines, Iowa look -- to Syria.
Good to see you almost thought about you ten best companies for employee financial security.
For the ninth straight year you guys put out this list.
-- Hollywood about what it's about -- how you would get on this list of the ten best companies.
In this list is is all of.
-- recognizing small to medium size companies who do an exceptional job of providing employee benefits to help their -- achieve financial security.
And -- it's very unique that we are recognizing kind of that small to medium size companies so anyone can nominate a company.
That could be one of their -- employees it could be one of the leaders of the company could be their financial advisor.
This year we received over 600 nominations for the list.
And we go through -- rigorous judging process whittled that down to what we feel the ten best companies for -- financial security.
I don't let me get to the grand grand finale and who is on the list talk about some of the trends that you saw among the top ten.
Some of the trends that we're seeing is definitely companies.
They're really -- embraced for -- financial security.
One of the things that they do is that they they take a look at employee benefits as a strategic investment for their organization so it's kind of transition from the HR department.
To more of a corporate strategic initiative and they'll look at it as an investment that pays off over time.
That's number one the second thing we've seen is that wellness programs are definitely on the rise and so you see companies getting a lot more creative in terms of how to -- -- wellness program.
To benefit their employees and there's some great examples of that.
And I would say let -- couple other things that are emerging are.
Just ongoing communication with employees I think every one of the companies on the list provide some sort of one on one guidance for their employees as -- relates to their benefit programs.
So there's a lot of good things a lot of creativity even in the face the adversity that these companies -- seen -- the last couple years.
I would say any deal would just obvious category here the voluntary turnover for these companies is it has got to be much slower.
Then the national average.
That that's a that's a great question great point Chris the that the voluntary turnover for companies on the ten best list.
It's actually -- 7%.
And if you look at companies less than a thousand employees nationwide the numbers about 24%.
So I think when companies take a look at the investment there making it benefits him one of the -- they get is lower turnover rate.
Which as we emerge out of this recession and the job market starts to heat back up these companies are very well positioned.
To not only attract new people but to retain the quality employees that they have on board today.
Because that's -- -- -- listen now these companies have employees ranging from 49 to 750.
Pretty much represented dammit who came in number one.
Well there is no there is no numerical ranking -- either on the -- you're not.
And and the companies really range I think the diversity of the organizations is pretty impressive.
So you go from a company that makes energy bars.
There's an insurance company there's a credit union there's an adhesives manufacturer there's a private.
College prep school in Florida.
So there there's -- there's great diversity in terms of the in terms of the other companies made the last.
I didn't notice the bulls school in Jacksonville Florida that's the press we talk about by the way.
Most famous salaam.
If you don't know Dez White the former Georgia Tech receiver one of the best of all time that's -- -- -- all -- -- -- and I look really stupid to know.
Here's the point how does a school get on -- list.
Well that school in particular I know because I was there last week they were nominated by other financial advisor.
And this one the other things that you'll find with these organizations.
Is they all seek the the the guidance the expertise.
Of outside professionals so for the -- school for example as a gentleman by the name of -- -- with a firm called the -- group.
And and he works with them on their employee benefit programs and he knows what a great job they do.
In terms of providing for their employees they provide a dollar for dollar match from the first 10% of an employees pay.
They put into their retirement plan.
So so gave actually nominated.
Nominated the -- school and that's pretty typical.
Luke we gotta run I -- Clif bar and companies on the list and right without going out and where there and just -- Clif bars all day long.
We live in a -- vice president of retirement investment services that has the financial group thanks to -- -- -- -- Great thank you do you -- I was leading medical course that you're in my nose on one of the benefits I mean that is the benefit.
-- -- -- -- on -- they'll find -- school is that in an insurance company and whether or do you use the and then I thought the number one was the American Immigration Lawyers Association because I want to be like -- Content they can't -- employees.
Thanks -- watching -- one.
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