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Lights hang -- a new week on Wall Street that the Martin's -- back to an airplane down what Nikki Haley did this to say it's not just about.
There's a lot of things that are affecting Americans today but what -- -- we should consider if we're about halfway through the year now that's right about that had to the big question is.
What can actually propelled this market.
Upwards and forward or is the market has thirty reached a saturation point as far as rallies go might be we're -- have a couple of our gadgetry including -- Chris Sheldon.
Have big new York Mellon and Mellon wealth management he'd be doing is just now and minutes talk a little -- about this.
-- we'll get into all those details and you're right maybe people just taking stock of the rally in where it's gotten and kind of reassessing things so.
That said -- we'll get into that we'll get -- -- the regulatory debate and the whole health care debate Peter Barnes will be on a little while also good to have that.
The dean of the Columbia university school of nursing ought to talk health care a little bit later should also welcoming new viewers we have on now Hulu which were excited beyond the last few days if you're watching it's on who remember the shows on -- every day Agassi.
-- -- -- -- -- That's why we're -- we're looking at the screen all the time.
Yeah just in case you are watching it on apple iTunes -- on Hulu the two people actually talk to US viewers do what I learned that this emailing each other.
But all of a sudden they don't actually live on any conduct -- show and that's what makes the show go round.
So if you are not watching a -- come watch -- -- tomorrow at noon eastern time this is like a time machine -- Robert Craig joins us with top story today the market is getting -- in real time that it didn't help.
Down by 200 points right now yeah it is indeed that we haven't seen a pullback -- does this telephone Tim smalls -- -- US trading at execution LC and reminding me something and it was sort of been this calm period and in everyone's sort of bracing for break up or down.
From the -- -- -- what's in your -- we haven't seen it 1% move in the market.
In about ten days it was a last time we had a period like that I mean certainly got to get back before last fall that's -- -- and so we really have some sort of a consolidation volumes for drying up it seems like it's already in the end of the dog days of August.
When we're still you know and in June with the quarter about to and that brings up another point that.
You have to watch right now a lot of fund managers are behind me they didn't -- -- this rally soon enough there's a lot of money on the sidelines you you care about that a lot -- talking three and a half trillion dollars.
-- -- media estimates out there Maryland's slots when I solve albeit a Maryland's now.
Bomb in this still may have to come in and and -- this market higher by the end of this month.
Then all bets may be -- for July and August but a lot of the money is Smart money is there are saying it wants to the end of this month -- -- -- -- help our friend from Seneca capital is on with us this morning and he not -- after the show it to that's one thing he's really watching is these many managers -- have to catch up to the S&P and show their shareholders when you get your beyond July statement that.
For the ending of the quarter ending this month.
That they did indeed have all -- winning stocks that they don't look like you know -- behind the eight ball so to speak and then.
In July and August things people start to look without the recovery is taking hold or not.
Could reassess things and make it for -- volatile sort of September October but right now I mean Nixon -- kid among many voices recently saying they expected to stay quiet people watch on oil that I mean oil back below seventy bucks right now.
-- -- that's coming down.
Which could help the consumer right now it's hurting the market because those energy stocks which were big leaders last week -- getting hit today you know the -- -- the on slumber jays and the like -- -- but there it's the integrated or the oil equipment companies.
They're all down today he had no you're right -- 6993 right now for crude oil so okay we're gonna talk to Chris held.
Thank you Robert -- about that because that's the trade when we talk about this this morning.
Our morning shows is that you have those commodities are down to dollars to bid up and stocks down -- -- -- one -- phenomenon or not that's certainly what's happening today.
Well Chris said Chris Sheldon director of investment firm Bank of New York Mellon wealth management -- -- Chris.
A great having what do you think is going on today's decision -- it's gonna seeking continue ours is sun.
It's kind of a 1 day -- morning kind of let.
Well I think this is really just an overdue reaction Tuesday the prior increase in energy prices and interest rates and so I think this is the market taking stock of where we are today.
Recognizing that we've come a very long way in the last couple months I think this is just a natural.
Poll that I don't think that we could call this what we expect in the next couple months I think it will be fairly quiet actually.
-- let's talk about some of the issues then that are on the table longer term because it seems to me and mean even if it is rather quiet -- -- big issues to debate one of which is.
The inflationary expectations in terms of what should we be more worried about is it inflation or is -- growth and over the weekend at the G-8 for example -- talking about taking stimulus away.
And now people are really starting to debate should we be worried about inflation or should we keep the stimulus keep the -- on the gas so to speak.
Because were were more worried about growth which one do you think more about.
Yeah I I think in the near term we need to keep the stimulus going we're still it weren't much better place than we were back in March I think that's part of what people have re -- back in to asset prices but.
The idea that the market in the economy can do without the stimulus is just too early for that.
-- longer concerns term concerns are about inflation but I think the market is really caught up to that view.
So near term I think people still need to be concerned about the consumer and just.
That the general weakness we've -- out there so they inflation is a longer term concern but it doesn't start tomorrow.
So how does -- figure and then with betting on emerging markets.
-- he emerging markets or something you obviously they had a very very big fall last year.
They got to such low points at the end of the year although they didn't really touch the lows in March such the United States markets.
We really do believe that the -- markets represent good opportunity for growth.
-- for it if you talk of the worst stimulus is taking effect immediately it's in many of those markets so.
Where's that typically there's -- I was -- an interesting report on Bloomberg.
Quoting Morgan Stanley analysts that it was said that the brick countries Brazil Russia India and China of course are gonna have a big meeting tomorrow in Russia.
Of all the heads of all of those countries said that in fact it should be BR I I see because he should add Indonesia into that -- Asia really the place to daily talk about emerging markets.
What Asia is the primary spot and Asia has already been very much in the spotlight that India is a place also where there had been the perceived political risk which seems to be coming down and so that's an area that were interest and in.
You mentioned Brazil but we think the broad exposure is the right way to go as opposed to very specific country exposure that that the pan Asian markets.
To us -- very very attractive even after the run up.
The values -- quite good we think.
Saying it like -- ETF may be investor should be exposed to several different.
In different variables out there and -- Yes I would say yes and and ETFs have been a very good invention to allow people exposure.
The challenges if you try to go to just one country.
We think you're missing some of the broader opportunities that we see so for our case we liked active managers where they can go in and find the good companies within.
Many of these different countries you you bring up the point of Indonesia.
-- Brazil -- we see opportunities in many of these different areas so if you give.
That by by buying and Ed broad based emerging market ETF one of our viewers once -- a new page -- in another way by going short -- somewhere else in the market.
Or you know is it just one like that there.
Well I mean we've got to us he did I gotta be careful to say one way bet but I think that the long side of this the currency side of the emerging markets all of these things we think will be working for us and in the temporary.
-- bounce back here in the dollar.
We don't think sustainable over a multi year so we don't think at this point that you would -- that away -- there are certain strategies where you might go short certain currencies are certain companies but.
For our case we think that the exposure to these markets and to risk assets in general still will they are powerful as well in the next couple years.
-- follow up on the dollar question real quick because Tom in North Carolina another one of our viewers are saying a moment ago that a low in writing in a moment ago of the below value of the dollar will keep oil prices high.
Obviously guys like you what you're talking Mets -- in the long term honestly what's happening today he says.
The Fed needs to tighten and that goes back -- -- Earlier question on this debate about what you should be more concerned about it's more more people calling on the Fed to be active.
On interest rates and start tightening.
Little bit sooner than some other people are comfortable with what's your take.
Yeah I I think it to tighten soon in fact I don't think we'll see that in 2009.
I think that one of the people who are saying that are looking at the reaction that's -- the bond market has had and I can understand.
The backup in yields to some degree but when you look at ten year treasury yields almost 4%.
The runup in gas prices I think that by itself.
Will be somewhat of a self correcting mechanism and so for the Fed to add on to them by tightening -- we just think it's too early.
For that step to be taken now we think there's time in 2010 and beyond.
For the Fed to pull back on the money supply when necessary we we just it is too early for that right now.
Chris you've done 50% for the year as far as the big run at 30% off the lows -- -- You know about 40% off the highs -- guess -- we -- in this mid range that might be hard to have break out of.
Well I think we're done with the easy part of couldn't call what happened this year easy to remember the first -- was still terrible here at the beginning of the year.
People who thought that we would hang on and build from there.
Mean if you you went to sleep which would have been nice and not look at the market all year you'd think it was kind of a boring year so mode most of this run -- has really just been getting back to where we were.
What we've been calling the re normalization and so I think from here what will need to happen for further gains this -- you talked about earlier people coming up from the sidelines.
Better indication of 2010 profits of GDP growth but it.
I wouldn't count that out completely and if you look at the S&P.
Up about 5%.
That's okay but it would seem to us that there's room for growth beyond 2009 but -- I don't think we're looking for substantial gains at least over the summer I think you'll probably.
Settle into this trading range we've kind of been in here for.
-- but the everybody says there are a lot of -- -- -- -- -- fallen off the cliff traders off the table are you at all so worried about going back you know something.
Coming up that would force -- to go back -- or at least near the lows of the market put -- I think it would take a very extreme events and while there certainly things out there that could cause that that's our -- -- that that's pretty unlikely.
-- -- that the biggest concern that we would think in the near term is that from the very depressed sentiment -- in March when people were afraid of everything.
We -- so far beyond doubt that what we called less bad -- the new good.
It's not gonna take just less bad numbers moving forward to really drive us up from here but -- take us back into where we were at the lows in the mid sixes on the S&P.
I think that would take a very extreme event beyond vote is our our forecast here in the near term at least.
Yeah Chris that I knew you're talking to us from Boston I'm I'm -- San Francisco earthquake pantry right and so this really big earthquake union's example before everyone gets really nervous and when he -- into rooms because.
They always want to know where the doorway and it's because that's where you should be safe and there's a big earthquake.
So that it becomes Wednesday -- get through big earthquake -- are now -- -- the doorway but they don't.
You always know where your flashlight and today I -- stages -- feeling warm mark comfortable less less -- ball.
Still using that as an investor army and they've really moved out of the doorway a little bit.
But there's still sudden this doesn't fear in the market place where you think the greatest not a fear -- and where you think -- the greatest amount of opportunity for growth.
Guy I still think there's there's there's this pervasive fear that something could cause us to go back into the -- very deep recessionary environment and spend an analogy -- think -- -- financial sector -- -- -- error.
I think it seems more -- like the application of policy of the stimulus or withdrawing it -- -- -- the -- and might we get spooked by inflation numbers we've we've got the CPI in the PP -- PPI coming up that we think will be.
Relatively well behaved but it's not current inflation now that investors -- are concerned with but.
It to the earlier point that somebody was making about the cash on the sidelines I would think normally by now in mid June and you would -- managers climbing more into this and investors getting back on the rally.
If that we're gonna happen and I think that's a result of people have really.
Been stressed tested themselves last year looking at this decline in there are some people.
I think were -- questioning.
How much they want in their exposure of their risky assets to begin -- so I think to me the risk is have we shaken the confidence of investors.
Too much -- and I don't believe that we have but I think there are some people are still looking backwards and -- not yet willing or able to look ahead.
But that's -- in the can Bank of America for example Bank of America has rallied more than 260%.
Office slowed so they had to ask that question and -- -- quote unquote riskier -- had been responsible for the markets run out.
-- -- -- -- It's your point is what are you can put more money there -- instead you put more money towards put on weight quote unquote not safe.
Investments that she thought maybe -- treasuries but now I am not sure there are so it seems like a little bit of a puzzle.
Right and every that the response for the market actually is quite rational if you say get back in March people were fearful of the depression nationalization -- the you know the list.
If that's not going to happen is the green -- seemed to confirm.
Did you re price those things that have fallen so much that war literally fearful of going out of business so that's that's why.
The riskier and lower quality things have risen to date but we need to see the market broadened beyond that and actually we are seeing some encouraging signs of broadening of participation in two to the earlier point.
That's what we need to see you for this market gains to be sustainable.
Through the rest of 2009 and into 2010.
-- talking to Chris Sheldon from my Bank of New York Mellon.
-- wealth management Boston about the markets President Obama by the way we should point out is approaching the podium at this hour in Chicago where he'll be talking.
Health care his big speech to the American Medical Association shall we -- who obviously the president now has begun speaking.
On the Fox Business network's if you like to watch the president does speak there you can do so we'll be talking health care.
-- just a few minutes with Peter Barnes & Noble the later in the show we're gonna have the dean of the Columbia university school of nursing on.
Looking forward to that.
You know Chris it's interesting some of our viewers weighing in on their kind of their thoughts on the market as your commenting on it.
And -- one of them things that we haven't talked too much about the coming up on the show a lot.
Is the effect of all the government stimulus you talk about taking -- too early government stimulus and or intervention has gotten.
Good better -- different deal with the overall effect do you think of government intervention at this point.
Yeah -- is very very difficult to sort out questions of good and bad and I think sometimes when people find themselves on one side -- that.
You don't have to like the specific policies to recognize that they will have impact in two to the question on inflation.
We look at the cost of these packages -- stimulus which -- at least in the short run seem certainly to be necessary and seemed to have accomplished the goal not.
Allowing the recession to do -- into something beyond that.
But the question about how do you pay for this five years out in ten years out.
As a percentage the deficit that's what the bond market in the dollar has caught on to and so that that's a pretty pervasive fear that a lot of investors have them.
Again it's something that we're.
-- wanted to talk to our investors about but it the first thing was getting through this very difficult period at the end of last year into this year.
I'm not saying things just sort themselves out and I think people should.
Focus on that but I think the idea that that will create inflation in the next year to.
We just don't see a strong enough recovery in 2000 intend to really -- the traditional solution to pick up in that time friend.
A lot -- -- hi I'm Chris thank you so much Chris Sheldon.
They in new York Mellon appreciate having you today -- very much good that you do thank you very much Chris you know a little bit later on -- you just cellphones for.
For business -- and how how would you like paying taxes.
On that so I think an audience of -- from our -- -- we're gonna talk about it.
As we continue here to talk health care next with the president speaking at this hour in Chicago as we continue on fox this is dot com life.
The markets are down more than 200 points in we have the president speaking about.
His plans for health -- watching these headlines as they cross the wanna get straight down to Peter -- -- joining us.
From Washington DC with the latest on the president's plan Peter what really stand out to you about.
What we've heard over the last -- -- for a 48 hour.
What Jeff this is going to be an important speech forty minutes long here -- that -- I got a copy of it is about twelve pages and the president.
It's going to be making a very hard pitch to the nation's doctors there in Chicago the American Medical Association annual meeting.
To support his Health Care Reform proposals he's going this to say that.
The -- that the it's gonna stress that the country currently spends.
Way too much on health -- and gets way to little the costs are crushing businesses and families that care is expensive but that doesn't necessarily mean.
It is better is gonna talk -- about preventative medicine.
For example and -- we'll talk about his support for a public option and the health insurance market day a kind of expanded.
Medicare Medicare for everybody this is -- -- the doctors are very concerned about because.
They get whacked pretty hard on their compensation and on the reimbursements they get paid about 80% of what a private insurance company does.
And -- the president's talking about expanding that concept to let anybody really buy into it if if the hill if the congress agrees with that idea but according to an -- He will try to spell out exactly what this public option will do for patients for doctors and for the health care system as a whole.
And what it will not to not do to try to reassure them -- To -- what secondly is the public option here how do you see that added that it would fit in with our lead we -- health insurance breaking News Corp.
I didn't wit -- -- that's how how that it happened.
Well -- another -- 46 million people who do not have health insurance in the cart president is talking about using.
This public health insurance plan again a kind of an expanded Medicare plan to at least in part solve the solution of the uninsured in this country but.
This entity would in fact be in direct competition with private health insurance companies.
And the administration's made it very clear that part of the purpose of this entity.
Would be to provide competition.
For private health insurance companies well if this is a government run program -- In theory an unlimited pocket -- you know the way that this program sets prices for example for.
Heart surgery or for Medicare or for drug.
Purchases or whatever.
That could have a bigger impact on what.
Private insurers can charge that's part of the idea to try to get health care costs under control but.
If you basically have a subsidized government program.
Health insurance companies and some of their supporters are worried that this could drive.
Them out of business and this is really -- camel's nose under the tent.
For a universal single Payer health care system in this country like the Canadian or the British system which as you know have their critics.
Final thing -- -- let's go watch the speech obviously.
Is there anything that the administration appears willing to gain on maybe in his give and take negotiation with congress that.
That -- -- dead they're moving closer to getting something back.
Maybe that they were pushing harder for at the outset mr.
Well we're -- it right now or in the beginning of this process the hill is really getting into it.
Starting today we're getting some scoring from the Congressional Budget Office some potential cost and we have a key committee starting to work on this so everything that the president is saying and this is my kind of rules that cover Washington -- sent said publicly by any of the major players.
Has meant to help the tried and it is a negotiation.
So the administration is it is not shutting the door to a possible.
Compromise on this idea of a public system and that would be to put together private.
Nonprofit co ops on a regional basis around the country.
This -- the proposed by senator Kent Conrad the chairman of the Senate Budget Committee a key Democrat -- big player in the health care debate.
But he hasn't given us any details on what exactly this would be.
But the president is promising people that.
Regardless of whatever system comes up they will be able to keep their current health care plan if they get it through their employer.
And be able to keep their current doctor so you know what.
Very tricky here to as they try to navigate this on exactly what.
But a public entity whether it's a public insurance company like Medicare.
Or a public coop type of system regionally around the country it's going to be difficult -- to navigate.
You know and it went Peter was it based in New York he -- he had -- he -- everything -- would -- -- -- -- got -- Pray they get ensure that you -- it -- that way yeah I did.
-- -- -- -- Do you think we didn't go to dinner but I and then they're they're not -- -- we think and I had cans -- Red Bull you.
Fear they get you're -- to be able to cover it for so many different things -- -- -- in -- I had I get a -- inevitable one other thing is that this is very important because.
You know if you look at what Medicare is done to the insurance market for people over 65.
There are no -- they're very few companies that provide.
Health care insurance for people over 65 why.
The federal government provides that 44 seniors and as a result private companies cannot compete.
So look at what happened with Medicare and how it drove up insurance companies out of the business of insuring people.
In theirs in their later years and that's what some of these health insurance companies are worried about today.
Because hey you know there are those who argue that the free markets provide.
Incentives to get to get the -- best care to provide innovation and care and if you squeeze out the profits and you squeeze out.
Companies that the -- private sector in this process.
There are risks to the downside for that kind of system so keep that in mind.
Very good point.
Thank you -- okay thanks thanks guys here vitamins.
-- -- and then there if that is true okay I think it's admirable.
Peter has it covered so many different ways I don't retention knows that rich I mean you're down there and bureau with that appear -- Peter as everything you could ever need -- want right.
Now I wanted to get to this bonds is offices like a fortress I mean seriously there is enough stuff -- keeping human being alive for about six years.
So you know any time they were worried about an event here we just we all have and we don't have actually an escape -- we have a route that takes us to Peter's office and.
-- -- -- -- -- Okay yeah yeah that's everything they could be honest indicated this from our RDC -- -- now caught on fire ever down there we know where to go First -- what.
Yeah yeah but you guys wanna -- like a -- you know lived for a year yourself.
Obama last night on -- he prints every document he's ever touched that oh my god only about I think there's a good.
Scoops and anybody in this network Peter you're gonna get all the full yeah it hit it that this is that this actually works quickly with let's talk more about that I didn't happen -- -- -- Actually have a story that you're getting would you rather play this week let the president get some help here he -- right -- and -- more financial regulation.
Yeah that's right that'll come out on Wednesday in many of those details that stuff we've been reporting on for the last three weeks or so most of it focuses on.
Systemic risk regulator -- resolution authority.
-- perhaps a consumer product regulator that's under the administration wants to push.
We're not expecting that many more details to come out on Wednesday the president will outline his plan a public speech.
And any -- that over to congress and it's up to congress to fill in and write the details so.
This is the administration's plan it's Treasury's plan they'll send that over to congress and then you know folks on Capitol Hill fight this out over the summer.
That should be a fun summer right so it's -- it's they had.
Well I mean.
Couple I get -- -- health care and this is so all along ways to go on all this but.
You know bring bring us up to speed to the best you cannot on on both sides of the issue and and -- -- how it's likely to proceed time -- Right you know and and the issue is of course affected every single point that the administration's going to propose -- folks.
On one side saying that they want to do it differently on the other side saying today opposing it right now.
The industry the financial services industry.
For the most part they still see the details on this but there for a systemic risk regulator -- resolution authority.
They do not want -- consumer product regulator for financial products that something.
That there against the insurance industry right now is fighting it out with.
State insurance regulators -- -- they're all over the map on that one right now you won't even see probably a proposal on insurance regulation on Wednesday.
Just because they haven't moved toward anything yet there's so much disagreement on it.
The hill -- it's going to be kind of messy up on the hill because.
Democrats don't completely agree -- what the administration's going to do you have some disagreements with that chairman Barney Frank of house financial services.
He's going to be involved in writing this senate banking committee chairman Chris Dodd.
Is going to be writing much of this and remember.
-- is going to be chairing the health services committee -- Senator Ted Kennedy is out so he's gonna have both things to -- while he's done here this summer.
And then you have Republicans who have their whole other financial regulation overhaul that they proposed last week.
So it's going to be pretty messy as they move towards it -- a lot of fog here on Capitol Hill would probably win this thing gets passed it won't have all that much teeth to it.
Biggest -- -- think Burton had this the average investor out there as far as these regulations go is it for the consumer protection component what do you think -- and I suspect.
I think it's.
The way that you're going to get here is probably investors will most likely have more information about a product they invested I think the credit rating agencies are gonna take a bit of a hit here.
They're going to be required to release more methodology.
More information about the products -- it was credit rating agencies among so many other folks who really slipped up here and and led to the financial collapse so.
And I think you're gonna have more information as an investor and it's just a matter of when you realign regulatory agencies.
Will they work will there be more duplication or is -- going to be another hole created somewhere else.
There's -- that we don't see yet so this is going to be an evolving piece of legislation.
To be a lot of criticism on on all sizes and if they can actually pass something that they all agreed to.
There's a real fear out there that media won't have the teeth that it needs -- that's.
-- the last point I'll make rich with you is that I think it's interesting that you you set -- twice that it may not have the teeth to it.
Does that mean that you know we've people who even had a summer show this morning people.
Wall Street folks come on screaming and yelling saying we can't have more regulation this is gonna really cut off growth this is the last thing we need novice.
That this might not be -- is.
You know -- might not be as as crazy some people think it's going to be.
I think that's right and especially when you haven't exposed in congress every point by point folks are really -- -- can can work on opponents of this when when you have.
A point by point regulation system like this is that you can go off and pick off each one individually consumer product regular let's see what happens to back because the industry is really opposed to that.
You see right now that the insurance industry -- get together.
On a -- to have federal regulation so we don't even see that in the proposal yet we may not actually get that that might be just punted down the field so.
When you -- and -- process like this it just opens it up for so much debate that can be a healthy thing.
But when you have so many folks giving their point of view that could really watered down -- you have a lot of folks are worried about the heavy -- of regulation.
But at the end of this process she just may have so many folks looking to do something here that it gets picked up a look at what happened with executive compensation.
-- -- the administration saying we're gonna come down hard and executive compensation.
They released their guidelines last week and you have chairman Barney Frank saying this doesn't go far enough -- all so it did that.
Is something that could be expected here doesn't mean it will go that way but it might.
Good points race thank you so much for that appreciate it it's not an easy things I've read these regulations so.
Cadets at the spectators off the threat I'd gotten yeah well -- -- -- tomorrow.
That's classic celebrated.
-- nominally a hard right.
The dean of the Columbia school of nursing coming up on health care and next the taxman is coming in your -- So go -- views on this.
As we continue foxbusiness.com.
-- We're bound for.
Yeah on one device.
Fifth for a well we should've played a minute before kind of personal phone I use my personal one more to be honest I -- the reverse -- -- forward my workflow on some my person.
This isn't a wallpaper -- that is his new idea but I have read that potentially you're.
You could be taxed for having work phone because the IRS says that you actually will use your work -- We're personally youths not nodding yes it's just a little bit -- I don't know re -- -- is joining us from his chief economist.
At the small -- and entrepreneurship council.
Great what do you what do you make of this I have that -- every -- actually get taxed if we have a workbook -- -- -- -- didn't want.
Brady goes back to in 1989 law that says you get taxed on any time use your work phone for personal calls and so -- But now there there and in Washington but he wants him looking for more and more revenue wherever they cans and and the IRS has stepped up and mouton is looking for tougher enforcement on this -- yes you could wind up.
Having to pay.
On any calls or use.
Your your work device again that's what we're talking -- -- -- the rescue question here because the one where they iris here's and so what better come after them because they're -- The 1989 law should we have heard of that before.
Most business owners have heard of it and some of it have some many of them can go through the end of glorious summer.
-- -- -- yes that's something we're going to the laborious process of paying taxes on yes but it's it's so updated its its preposterous and there's at a time when the cellphone industry was completely different and the -- -- -- -- -- -- -- -- -- -- -- -- -- The costs you not with a small business group and whenever you look at rules and regulations they always fall heavier on small businesses and they do a larger firms so what you're gonna have is again.
With tax compliance -- that the small firms are gonna get hit hard.
-- -- -- -- -- -- Do violence that -- let's say it worked for small business and I try to work on with that business.
Do I get hit and a small business get tickets on businesses paying taxes all along remind myself on New Year's Wimbledon.
Do keep track there there there -- unless you decide that you give you provide evidence saying I've never use my workflow for personal use them fine.
But otherwise they have to track.
All the minutes they have to go through this process of tracking what you're doing with your found and then when they calculate whatever personal usage you had you'll pay.
I mean you you you that'll be subjected to tell you it is not a maybe nobody will.
Bob -- -- -- our viewers bring up the point that we retirement in 1989 law.
How do you force this to mean this is going to be it and we we could talk in the it's an interesting kind of discussion people probably so I don't -- -- be taxed.
-- -- and -- pay this thing -- the IRS is coming up now with of course new and innovative ways that they can you know.
Businesses pay this tax -- individuals pay this tax and that's what they're trying to -- -- -- put up these proposals that people can comment on by the way up until September.
There is they'll just say -- -- flapping 25% this part is it's personal 75% of its work and they have some other options as well.
We want to be a -- Results of this is that all of a sudden what we're doing here everybody's like what -- you mean what's this tax and this is a silly tax.
It's gonna give some impetus I think to repealing the -- -- worried about it from small business perspective possessed people you think you get hammered actually that the committee when you look at all the data who gets hit hardest with new rules and regulations business small business that would get him out of the -- capsule.
But did that it doesn't give a conversation right here personal signs personal business that you use the phone when your your work phone diet for the next feel great because you're using it for work I mean if you just can't put out.
Then there's my fill loophole and that's what you can't use -- you can if you keep track of all that you can do and actually get it.
I -- can you imagine all the text messaging and it's my emails acampora yeah.
Got tax on them and I think you keep the country.
Process he passed the slow to repeal last year and it's that's so it's going to be a big initiatives it'll be -- -- see what happens with let's bring in our good friend Al Lewis to the conversations and Doug Jones.
Our columnist out of Denver and raised about we'll talk about this for a few minutes -- Intel.
I cattle hi Jana not yet.
I didn't know there was a lot like this -- here I am with my work paid -- And I'm supposed to keep track -- -- my mom calls what my sources call when everybody calls I got a question for the IRS.
If my mom calls me on my cell phone from work.
But she's got a good story idea.
Nancy as a good sales -- believe.
Is that a business com -- you know look what huddle I want that.
You know the fact of the matter is the IRS put this out for comments he said look we've got the slotted so complicated no one understands -- so let's just open it up.
For -- -- in the comments -- be that he should repeal the law.
They're getting enough of our money just with Dolly excise taxes.
Just you know like sending out did still leads the bandwidth so these companies can even exists and yet they have -- nickel and -- us that worked for for phone calls and you know what -- I'm -- my weekend minutes free weekend minutes what's the value of that how to -- you know pay taxes on free weekend minutes that come with this bomb.
And if -- can make telephone companies utilities right and then they could just kind of bond.
He had been in here I'm.
Legal advice on how to be there definitely as well as them.
And Bob and Michelle Obama's ultimate.
Sure it's -- -- also they opened up for comment which have been whether it's a silly what we open up our show for comment.
Every day and it's funny comments coming in miss and it's interesting just.
I like this and I think that lawyers go for the deepest pocket Q is that these are irrelevant would that -- funny like the bankers got the worst cellphone -- Nobody else they're going to never use their phones are busier trading in the light.
But that day because -- -- your income because relevant I think it's something -- reading it -- you -- opened the door that's part of the problem here we're seeing a lot of and it criticism from our viewers spent.
It's your point me how would you keep track of it and should you be taxed more than -- networks and Burger King for example are less -- got.
Works -- Wall Street I don't know.
Love assist the funny part of this is this a -- that week.
-- sorted out by now I mean this has already been on the books since 1989.
Nobody's doing it.
The IRS is so desperate for -- raise money that they're looking at every little thing about some 23 year old researcher was.
-- around one day in the archives and that I'll look back in 1989 we pass this -- how -- nobody pays a cell phone tax.
And you know the answer is because nobody's gonna -- all those -- and -- -- -- -- that there's ever really going to be a fair way to do this the day out of this find something else attacks I think.
Let let you know on the other hand -- I don't know how that's yes that's -- -- -- candidate -- how -- like how how to -- a breathing taxi Hollywood just charge this for the air right a lot of FiOS.
On the other side of the coin it would be kind of cool if every time somebody was on the phone had -- -- a tax because you know you -- -- on the street you can't even tell.
The insane people from the people.
I -- on the cell phones that mark.
And yet you know here you -- a chain or -- people are screaming at the cellphone completely unaware of others around and and maybe maybe if we tax.
We we might be a marked ten of society right there be fewer car crashes -- either -- Your parents paying attention to their kids.
My kids actually paying attention in school instead of text and you tell your.
I think he didn't even yeah.
We haven't even -- It's scary part of it somebody's sitting down yeah I think.
Or in congress hanging not a bad idea about what lessons -- to submit what you -- it really what our businesses do they'll break and that's that mean it seems that.
You don't -- around the underestimate him that's especially when you're really -- three million small that you just trying to make it.
Thanks -- you have to pay attention -- unfortunately have to pay attention all these rules and make sure you're implying as best you can so that's.
Then I think -- is why.
The attention it's getting now that people even in congress are gonna say this is tennis period maybe we should repeal this -- so we'll see what happens -- -- hundreds.
All right let's talk -- happy hearing that a couple of to small business issues in general mean how do I think things are going that we've had a number segments and Russia's.
He is talking about his administration doing enough for small business should more be done should we just let it go as it is and what issues you thinking about right now.
-- -- -- That we've created more problems -- we've solved with a lot of with the stimulus measure that would happen and the massive government I mean really unprecedented government intervention in the economy so I think.
We're causing more problems -- solving and when you look at small businesses.
The key is to raise capital they need capital -- to get up and to grow.
I'm not seeing much here and in terms of unproductive things -- that -- that we need to be looking at things like.
You know allowing expensing for capital expense for all businesses from right and get a temporary -- -- that for for small firms.
Reducing capital gains taxes and -- boosting incentives in the private sector to can't rely on government I -- government is gonna.
Start crowding out and we're we're talking a lot today we're gonna talk more about adamant about health care because of the -- the president's making a speech in Chicago.
That's another huge issue for small businesses to run the costs are really going up and a lot of people -- -- -- tell especially small business owners that we're having a real tough time managing this.
What can be done differently there.
It's it's -- huge issue for small business holy cross where the question is which -- do you do if you think he answers more government -- intervention then -- -- you probably pretty happy with where things are going right now.
We've always argued that we need more competition and choice in the system so things like -- health savings accounts are good options for a lot of businesses.
Making that you need could have some reforms from congress make the health care marketplace nationwide not state by state -- you have some choices appear in the state.
With a regulatory costs are off the charts we can't afford it then you can buy your health care coverage somewhere else out.
I'm really quick again as we continue to watch the president speak about health care -- thoughts on this where when this conversation about.
That the public it's you know public.
With the -- adolescent opportunity -- possibility of a threat to public assistance to compete with the private.
At what and -- so that's you.
As we've been watching.
While watching his speech is the conversation overall.
I think it's going to be very difficult for anybody to establish a single Payer system I mean that's just not what America's all about.
Our health care system is made up well used to be more the sisters of charity -- charity organizations running hospitals.
The private sector always had a place -- it.
And then of course the government always has a place in health care I mean whether it's Medicaid Medicare whether it's the fact that they have a VA system.
The government's involved in health care so we should just quit pretending like it's not and ideally that's a balance in -- -- to be achieved.
Between you know these three parts of this system and I don't know whether we're gonna achieve -- or not but but the other thing is that health care costs are out of control but they don't need.
Define some way.
To get him out of control I -- out let's talk about -- you put these federal bureaucrats in charge and will really have skyrocketing health care costs what guess what you know the private sector bureaucrats.
Have had -- had had their time I mean this is -- on on a long time.
And I got to tell you of the healthcare Payer system.
It's just as big a mask is -- that was run by you know the Soviet Union in this country so I I don't know where all the -- up it's incredibly complicated.
And -- -- a baby boom generation is just getting older.
And you know probably sicker and there are going to be utilizing the system -- more and it's really headed for disaster they don't start doing something now satellites.
What you said earlier you disagree with that well you know one of the things talk -- on the other products that is that it's not just the privacy and private sector has to deal with an enormous number of mandates and regulations and taxes.
And all those things have been -- increasing over the years.
And that's been a major impetus in terms of driving up costs that you can't just say -- the private sectors had its chance and then he had to find another way the private sector is burdened with.
That's not what I said -- I said there's a place for the private sector -- you know the idea that the private sector is gonna take over the health care system.
And everything is going to be fine is a little delusional when you think about all regulations that you just mentioned and the fact that you know the government's one of the largest consumers of health -- so.
It sounds out like when you're up there and make -- as a play -- Public private competition that they're talking about your I would that it sounds like.
Well yeah absolutely I think there's a place where.
Charity organizations to be involved I would.
One of the things that I saw happen in health care system -- -- so you don't churches and charity organizations.
Selling their hospitals to the private system I don't know that that's served anybody well I think that there that you you.
We need to have all of these players involved in the market -- I would never say that we shouldn't have private.
Health care we absolutely need it and you know what there's always going to be private health care because there's always going to be people.
We're willing to pay more to get out of the government system which at times cannot provide all the services that you need.
And that's -- -- but it is -- rumored when we're on the path towards where I think President Obama and many in congress would like to take us in terms socialized medicine single player Payer plan.
Let's remember what happens in those countries that have those it's you know we we did the mayor.
-- a long waiting lines.
You know you have to -- if you get certain types of cancer that they did you know government bureaucrat doesn't seem to be that serious -- -- I mean that's the type -- system that we're talking about here.
That were pointing towards and I think it's really dangerous the closer we get to that.
-- -- -- -- -- -- -- -- real well could last more then I'd get a -- -- on time but Del Monte glassware and Andy -- to go away swept -- can't.
We have problems with this system until you -- point -- all kinds of deficits in the private system as well I'm talking to a guy.
Recently he went to India to go get some treatment -- just because it was cheaper and better there.
And you know he made a little vacation out of it is well so I mean yes you can point.
To problems -- any health care system and they all have problems.
What we really need to decide is what this balance needs to be.
Between you know charity the private sector in the public sector that's that's my view of it and they don't do have problem.
Problems but I would argue we still of the best system.
That the rest of the world -- with its problems I think we some of the best that's a good point array and day out thank you very much very very happy -- your perspective we're going to be watching your hand yourself and usage.
Didn't hit Japanese -- -- excited -- read it really does yeah.
And I am I out thank you very much check out out of this exact yet to tennis articles because you think if -- -- every.
He is always fun to talk to good guys are right and I'm great thanks again for coming and saying okay we're gonna talk about a couple that -- here financial literacy we've done a lot on this show about financial literacy because you think it's really not a financial literacy -- get let's -- exactly.
You're so that we understand what's going on -- -- me some other people do is we'll get -- that but next up.
Health care discussion with the dean of the Columbia university school of nursing at foxbusiness.com.
Get back to healthcare -- just a moment -- matches have been really quick as we watch the news headlines from around the world were really watching this election.
And what's happening in Iran and I'm just looking at some headlines -- Dow Jones -- about a -- erupting.
Act at at a rally and running in opposition rally -- K rod apparently it is according to do it looks like he says -- prices -- Dow Jones that a riot police have clashed with protesters at a mass rally in Tehran.
And continue watches for -- because again this is a very important election on Oak Creek and they admire her morning survived the interesting point that.
I had that idea -- was that he is a little bit more.
Lenient or tigers and -- Mary -- and policy but she said you know.
Maybe not so it'll be interesting it's going to be interesting watching that what happens -- the election regardless -- in public I've arrests so it'd be interesting to watch how that develops that I'm.
Speaking of unrest.
The health care debate in general has a lot of people I what I thought of you earlier on our common board.
If you ever had to go without health care because I know I have.
And -- -- and it was it's more expensive than the other can get it right client and it was always.
Trouble I was freelancing for a long -- as a journalist that a lot of -- get out -- -- -- small business and otherwise and it's -- I still in this should be a great guests -- can also maybe answer some questions give us some perspective from the inside.
The health industry and that is that Mary my lingered is that my very favorite I think the great -- -- she's indeed it cloudy.
Mercy school of nursing my -- -- For graduate school of journalism -- journalism got me it's not all coming together here.
He'd give me some perspective from me from the inside from senate actually providing care.
After that challenges.
Of the system we have right now.
And what you can see is maybe a potential.
Positive coming from at and from the fronts from Washington I guess.
I think the good plan that the president's putting forth has a lot of promise not only for those are already insured but for those who are not.
We struggled for many.
Many years really since Medicare and Medicaid and 65 there was a -- opportunity then to get universal coverage and we miss that opportunity.
But today I think everything is right we know the costs are unsustainable and -- as clinicians working in the field.
What we're finding is that patients.
Are -- -- who are likely to live beyond an acute episode that might have been very disabling or even.
Good accustomed to -- many many years ago -- -- chronic illness is probably the most important.
Issue were struggling left.
Chronic illness takes a lot more than acute medical interventions it takes.
Yeah a lot of counseling a lot of support -- -- support changing one's way of life.
And that kind of an environment where we have -- -- more chronic illness with more and more.
Need for care and very little reimbursement for.
We also know that many chronic illnesses and many acute illnesses.
Could be prevented with early access to care and prevention.
And prevention costs money yeah if we don't have it in the plan people who will not be able to actually you just.
This guy that is especially for the headline across from President Obama as you're watching him speak and -- -- -- Fox Business Network that was when the -- that -- my -- about at least give us defensive.
About our treatment still meeting they have to do more preventive care what -- you do something like.
You know educate people in schools about better.
Better Adam gave me health care overall are better -- -- just aren't there -- exercise -- -- -- it seems like it might be different routes despite just putting a plan in place said.
That could potentially -- Solve this problem -- there are many you know many there -- many illnesses that they are not symptom improvement right high blood pressure is not -- -- And yet it's one of the biggest killers in American.
And for Americans -- -- if high blood pressure could be detected early.
And patients could be.
He helped to understand that even though.
They aren't feeling any -- -- -- high blood pressure they must keep taking their medications.
They must go -- nutrition guidelines they have to reduce all they have to keep their weight down.
And when you have a and -- a disease that is not symptomatic it's very very difficult for patients understand there's a -- and they must follow.
That kind of prevention takes counseling.
Takes time from provider people aren't accessing -- because they don't feel -- need for right you don't need to that the doctor -- radio.
-- your ideas about starting and in schools is crucial.
But it's not enough.
The other thing that's missing really is that patients are not -- -- aware.
And many providers are not that either about the value of evidence.
Evidence based practice is you know -- It's in every everything you read these days but it means is that care is determined by the research that underpins that.
In one of the most telling areas where evidence based practice first came to -- says.
Was there was me about twenty years ago an overwhelming.
Evidence -- back surgery for back pain then and then how large study was done that showed.
And -- and rest we're probably more affected.
In many cases since surgery.
And cheaper and cheaper who came with a bit less.
Did disability thereafter.
So -- sitting behind practice he's going to make things.
And better outcome.
That goes to the president's plan which is being pitched as an idea of saving costs not raising -- long term but let me ask about some of the policy.
Good positions that are involved in this in the debate that's happening in Washington for background you're familiar with that you worked in 1993 right on -- to some extent of the president Clinton's plan at the time yes -- so you mean you know the back and forth on this and we're back to some of those old arguments again effect on our comment board viewers are.
Commenting live as we speak and have been throughout the program there's a lot of people saying.
We can't afford this right now.
That's one complaint the other one as well if the government gets involved and and -- who brought this up earlier I think coming here.
Well what do they know about running something like this would rather leave it in private hands as a whole public private debate what he citizens.
We can't afford not to do it right now from the -- -- just escalating so so rapidly we have government systems we have the VA we have Medicare and Medicaid.
One of the options it was in -- 93.
Clinton health care plan which is.
Resurfaced with a different name on it that these cooperatives which is a wonderful way for people to be able to access care and -- low premium because if if -- large pool of people.
Then one -- liar who needs a transplant or something very very expensive doesn't raise everybody's premium because the pool is big enough.
So we have these cooperatives as a private sector.
Option for people I think it'll be -- Very attractive.
And they won't feel that there you know having -- health care.
Number yeah I think they think that they promised that this public credit I did that it's hard to understand health care is -- -- -- Tough today conversational speaking unless you can make -- really personal waiting and his personal problem Maria personally ailment.
That he did it is similar to looking at the way of private and public school system are set up it in the ideal world with the -- up and running.
Is that it is that way to look at it because then it becomes a question of which facility private or public it's the best equipment where the students get the most attention where they get the best teachers my -- he's in the public school systems is a great teacher.
But you know -- she's talked yourself that -- -- teachers are lost to.
Private schools because they can be compensated better and just overall better working environment and the government can provide.
It seems like a lot of times that it would look at how good at -- same sort of issues arise if if this type of program is up and running is that anyone who could -- talk to say it again -- men and somebody -- -- medical industry -- be more attractive.
The better doctors to better treatment to be with a private.
And private health insurance or be able to provide here -- patients with private health insurance because he would have.
You know better facilities are better equipment where the government.
Just based on what we've seen it I'm done being able to divide it fun to resource is -- not -- -- -- from.
I think it's somewhat different and the announcing of public and private school ovals I think in health care what we're looking for is a standard of care.
It would be indistinguishable.
Whatever -- was painful it's possible I do think it's possible I think the most and important way we can do that.
Is by getting prevention involved and you can't do -- that universal health care and and whoever the Payer is shouldn't make that much difference.
-- -- a problem incentive though to some extent but if there's if there's a public private split what's mindset as a business -- to to provide health care and of the government's gonna pick it up they're still trying to figure that balance it seems.
Cindy but did that did that's it I mean they've got to figure out something that doesn't dis incentivize private.
Employers to provide health care to the employees don't think.
You picked on a very interesting.
Peace because if if all of a sudden healthcare benefits are tax employer -- -- right which is that there will be a cascade right people leaving.
It in an unsustainable way into an untested system that hasn't been built yet right.
So I think the incremental -- don't tax -- especially if -- I think it's it's incremental what we need to do and I think the president starting out right he's seen half of 635.
Billion going to be from revenues it's going to be taxing very very high income people's health care.
Costs and the second will be from savings in Medicare and Medicaid and it's very important understand.
Then we shouldn't be talking about those savings in terms of fraud and abuse clinicians.
And they care about -- patients are making a license decisions they can they don't have enough evidence to face about it.
And we don't have enough providers who primary care I spoke with the -- man Friday.
Not just -- audiences our president has today but I've spoke with the education committee.
We need to build a primary care resource in this country for -- have universal access because we don't have enough primary care providers.
Nurse practitioners can be and very important part of that country we don't have enough physicians -- primary care so we're gonna build a system.
We have to build in a way that doesn't it disincentive.
The incentivized to private -- right now -- and I think the president understands that he I think he's -- -- Andy he's doing the right thing.
He's he's gonna move the system forwards that the trillion and it's going to quotes cost in ten years he's gonna save us money.
Watch the debate script a happy by the way it's headed your perspectives -- All right -- Monday here's the dean of the Columbia university school of nursing we continue on -- this is dot com obviously see President Obama speaking about this issue in Chicago today.
Talking about financial literacy not a big issue and how how we should teach children.
About money this month.
-- -- -- -- -- -- -- Hey Karl that's up its active healthcare financial literacy taxing on your cellphone.
Markets again back to their -- lawlessness and may rather be illiterate today -- one another and maybe that's known to slow the -- on instinct right.
Looks like better as we get we're following out of this this developing story in Iraq where it looks like.
That's one protester was shot dead and several other wounded in this Iran rally -- again hundreds of thousands of people by -- -- abstinence.
And looks -- got that news photographer telling.
He says -- -- -- -- really good -- come yet you get it from coming coming -- -- here because there are a lot of people on the ground that happened between getting -- information.
They are somebody's taken a camera which -- happy -- -- it's very tough in that country to get real accurate information out of it anyway there's a big debate.
-- make some but I should say happening on Wednesday to promote as we were saying.
Financial literacy John Bryant is the founder of what it's called operation hope he joins us had a DC to explain what's going on John good to see you thanks for coming -- They got some big speakers on tap here will be trying to accomplish.
Well before we get -- of that is losing the debate you just head on health care whom the number one call the divorce road network -- a divorce in America today it's money Brighton in the number one reason that people would divorce.
If health care.
So it's it's it's it's an amazing how under undergirding sort of almost everything that that good that happened in our society is what I call the language of money.
Which when we don't wanna talk about it people are ashamed to admit they don't understand if you -- Talk about sex.
Love unfortunately and money but yeah this topic here -- We'll not any particular order of course yeah.
When I was little this this global summit this happening right here in DC and specifically where we're hosting it in anacostia.
At the art still bring dignity to this great community but it's it's just we just that we just had a beautiful facility that happened to be in anacostia we -- -- do it there were Fed Chairman Ben Bernanke will speak first in the morning.
Then we have FB IC chair Sheila Bair.
We will have.
Valerie Jarrett assistant to the president the White House civil rights icon Andrew Young.
And 65 speakers from six confidence.
And ten countries and over 800 delegates all.
Descending on Washington DC instantly and a caution to talk about.
Making this a business case.
Did think it was so what's the one thing you'd like people to take away -- probably not just one.
But what our schools missing what our children not learning in terms and it's not just children obviously but it starts there not learning about money that they should be.
Well because we're not learning about money our arguments that it -- some cases kid -- does not work.
In other words.
You know nobody wants a mortgage I mean nobody woke up in the -- -- a -- I want you when those beautiful sub prime mortgages were a lot of points and interest yes I mean people people wanted to become -- homeowners sometimes too much so we bought too much house.
The apple with a payment novel was the interest rate.
You never -- with a payment is and there's an interest rate attacks.
This is the middle class -- is not a poor person's crisis we all know somebody got in the too much financial.
By -- by not being financially literate.
But in in schools is very interesting the -- -- -- about -- the mortars and -- become a homeowner nobody -- the Carlo on the one inefficient automobile.
Kids don't really want an education -- -- you academically what what education can get them so you have a 30% dropout rate amongst all kids.
In this country in an information age and the knowledge economy that's that economic -- -- -- for the child and it's a competitive issue for our country.
But you have 50% dropout rate amongst urban inner city young people and that is not acceptable I think -- -- the dropping out of high school.
Because they don't believe education is relevant to their future.
And the way you make education relevant to their -- -- -- show them how to proceed how to do well and even how to get rich legally.
The financial literacy free enterprise and -- of -- ownership opportunity.
And if you've got a public record.
And I assume you mean you don't mean by public record.
You can't get a job it.
On any bank or corporation and you can't -- the background and about -- brilliant remark which you can't become an entrepreneur or self employment project and that's the really the foundation of America.
Is the power the idea we got -- within its crisis would reach.
-- a -- virtues and values is nothing more -- private capital and other than Portugal have been right so we've got to make -- -- -- good capitalism and fair enterprise.
And -- teaching people -- language of money starting.
When they're very young so they're not exchange.
This sounds like you just got to get a lot of there will be watching on Wednesday.
John thanks so much for coming out today to add to preview that's -- get an idea what they can expect from Ben Bernanke Sheila -- Andrew Young.
-- operation hope and the financial literacy initiative -- DC thanks we just an extra hour if you want to -- -- the maximum that.
I'll go back to -- bad break.
Operation hope -- -- -- -- by the way that you guys to guess nonprofit next time on John we'll talk a little bit about what it means to set up a nonprofit like that picture unfortunately hit.
And at times today that -- -- That's it for today anyway given a lot but I guess it white race -- literacy center left.
Then anyway jacket again I'm an -- on Hulu and we'll be back at noon tomorrow foxbusiness.com.
Free throw line.
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