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We kind of got it back outside Chris got to make an intern -- parents not trying to defend the market.
A -- -- of the intern -- -- the city here's what I'm saying sometimes.
Sometimes you get a little bored you know it -- you out there watching you know this.
So and so that you just try and mess with the interns and it's an easy thing to do because they have no idea what is serious or not -- and -- points out Christmas years and I've areas wave.
I think it was actually it was not serious lessons.
He's given today that -- you know like I Wednesday and I can tell you what example and that means say well -- And it got -- -- that they can be Thursday Tuesday previous Sunday is long as the market is up 122 points.
Are all an act -- -- -- -- -- on.
This first of all both the intern and Bryant's desire our floor director are not small and both bigger than me so and and and I'm still that.
All up on twenty points so that's bigger than we -- -- -- that doesn't -- I was so I don't think I'll get offended by an.
So offended by it we got into the finance lead and lead and basically us at this right now also also impacted -- students would not talk about later because it's when in my movers because it is really the leader behind the whole thing.
We have you know the World Cup going on this afternoon and of course we have which annoys the crap out of me the LeBron could pick up up up up up up why is.
And why he's so badly today if it -- no I know pretty good evening on the floor but waiting for this whole LeBron.
I talk about that at length a little bit later I -- That does not and why he's in this -- the thing.
Why does it annoy you that somebody is making a good living in this country doing what they do best isn't that what capitalism is all about is LeBron James is it's an obscene living okay we'll CEOs making -- living look at some of the even some of the golden parachutes at these these CEOs have been able to bring -- home with them.
I mean LeBron James is not failing look what he's done to this Cleveland -- morbid.
Cleveland Cavaliers franchise that had maybe a two year stretch in the entire history of the franchise before he got there.
And now they're winning every -- not champion just that they're winning and they're putting themselves in position and it's all because of him.
I guess is bothering the most is how much quality time we're spending on means they've got like we just -- we just got something sent to us that -- commissioned.
In your brand into it like create a PowerPoint presentation on how much he's worth it -- inspected -- guard university's clean I mean.
We spend -- it's kind of figuring out what to do an Afghan is -- well.
I know I know but we we spent a lot of time talking about the guys since service's number and things like that -- these are things that people can't really relate to his night.
As they hand to say if an NBA superstar comes to your talent how much is that worth to your town it's an interesting -- even though it's very hard -- actually.
Put of real figure on that if he -- -- how much is it worth the economy to go if he stays in Cleveland how much is that worth the economy.
I think these are important things and why he'll want to New York you could be on the street bleeding and -- stepped right every.
I really don't know why would one come -- -- after a while and I know you want you won't step on him unless he felt when a championship any Fitzpatrick joins us right now directed investments that.
Hinsdale associates -- in Chicago one of the cities that might be vying for LeBron James.
They it is everybody talking about LeBron James there.
They are they're excited you see it's one of those things is every talking about the market -- -- That but.
It's been fairly quiet but any kind of up day like this will definitely take let's just hope it holds.
-- -- -- that's a great point yesterday we didn't hold a 170 points who actually in negative territory before.
A late session -- buying it brought us and up 57 points.
All of this is not in new trend though this is something we're seeing in it seems like traders have to be -- you -- needing to get out.
Is the ready long term money waiting to come into this market.
It's it's really been been a tough market I think people just don't have the conviction.
To really start buying and large quantities that people are nervous.
The sell off in May and June is very fresh in people's minds.
And with the low volume there just has -- -- a lot of buying power here.
So what do you mean you believe it are you holding out for earnings season to vilify it.
Well I think we are oversold I think the markets pricing in.
Fears of a double dip recession so.
I would be buying and small quantity is right now.
There are a lot of attractive.
US multinational companies that we're looking net.
So I I I -- I think it's not a bad time to start putting a little money to work.
Didier fearful of momentum just working against you because it just seems like there is maybe not.
The ultimate amount of -- out there but that it did that that sentiment is growing and it seems to be weighing on the market maybe even some I think we saw that and at seven day.
That drop in a row it's seven days in Iran.
It definitely there is not a lot of news coming out.
Definitely thoughts that this is gonna possibly go down a little bit more.
Until we until we get the earnings reports next week.
We we could be kind of range bound here but again I think we're really are a little bit oversold.
Corporate fundamentals look pretty good and I think earnings.
Will come in a little bit better than expected so I'm slowly putting some money to work and for the long term I think that.
To get in at levels that are down 10% 12% here.
I would slowly start putting putting money to work.
Yeah and to your point couldn't bounce sheets are pretty strong hopefully we'll see that their earnings season.
Does that mean you're not worried then about the so called double dip recession -- -- talking about.
You know I'm not really that worried about that I think that.
That the V shape recovery is is not happening but as I do think we are still getting growth.
And even though it is small growth its its positive so I think this is more of a bump in the road definitely housing and unemployment.
Our major issues here but I think with businesses.
Being as lean as possible and cost cutting.
There there is some room here for them to to outperform and I think we argument.
Be able to withstand some of these these fears and not have a double dip recession.
Any any particular sect as you like in the second half of 2010.
Well going back to my point -- multinationals.
-- like some of that consumer staples.
Some of companies like Coca-Cola Yum! Brands.
Companies have diverse revenue streams that can -- -- the emerging markets and go overseas.
To get additional profits.
And -- do you like technology.
And some financials some of the higher quality names and in both of those sectors.
-- we appreciate you sharing your thoughts with us and good luck to you in Chicago although I know nothing about basketball -- not gone there.
I thought I thought it and you'll -- find out well any Fitzpatrick director investment at Hinsdale associates.
I would say that news that -- I had to pay attention during that and a whole Michael Jordan thing gentlemen -- and yet -- that I got got that that's pretty much where my basketball career.
-- -- Michael Jordan that's part of why don't I wouldn't go there if I was LeBron James.
-- shuttle already has Michael Jordan Scottie Pippen in the six rings.
When you gonna add to that legacy and plus if you lead Cleveland to go to Chicago.
You're going to be the most hated man the second most hated man in Cleveland history the Art Modell moved the grounds the Baltimore is number one with a bullet.
The bottom you know but who do you want -- that's for your family's from that's your hometown Saint Martin from New York.
What about -- -- New York the knicks have enough you know.
Figure heads -- -- -- done diddly proved since 1973.
And the idea you had -- Alito bit -- -- win -- championship.
We got a break when we come back I guess it later on the still -- out more about LeBron James in that situation we're getting closer and closer he's gonna have a 9 o'clock show.
That would and tomorrow night rates -- tells he ways to go.
It's easier but a lot more on this market up 120 points well.
The fact that still marketable 125 points after finishing up 57 -- is that the seven straight days to the downside.
To the good here the -- -- -- half after our July 4 holiday Chris cutter Tracy Byrnes with you Peter -- C joins us right now economics professor.
At the University of Maryland Peter -- -- good to see again.
Are hotter than -- in Washington you're probably gonna fry an -- on my forehead and a lot of just fine but -- -- good Friday night here for a head though last February based on now what's going -- this administration and I'm guessing your thoughts on that haven't changed much.
-- -- did you see the president's big just before the hour.
I mean it was -- it hits.
Export -- shows no concept of the scope gravity consequences.
All the solution of the huge trade deficit that is keeping this economy from recovering.
It's that dumb simple and he says for the first part is kind of but it's the United States government has never -- war.
I'd guess he wasn't old enough to remember Ron brown and Mickey Kantor in the Clinton administration doing the same thing.
I would like to know whether Tim Geithner and company has one single new idea to get -- spell.
Okay well that's -- thing right they don't seem to based on what you're hearing what mode right so what does that leave and leave us.
It -- again and again -- this so called double.
We had no ammo left there's -- money in the coffers.
We have ammunition but it's not money.
I did that you print that the Fed or that you spend in Washington there are three legs to macro policy the other one -- the exchange rate.
But this guy goes over there and begs and -- for China to do something.
The trade deficit with China is 250 billion dollars.
You cut that -- happening here.
And -- provide enormous stimulus the US manufacturing and then in turn to other segments of the economy is simply can't grow your way out of the trade deficit.
By doubling exports because the things you need to do to double exports also require you to double imports.
And that would make the trade deficit worse and things even worse than they are now with regard to its tax on growth.
You know for example a free trade agreement with Korea do you think that's going to be one way -- gonna let him more bar stuff but they're not gonna demand that we let in more of.
And these policies that is enumerated are that very same policies of George Bush.
Peter how the -- -- don't -- Peter.
How do we strong on the Chinese.
When there are there are bankers essentially -- throw -- We'll think about what they do every day every day they go into the market and they they print -- in the basement of their Central Bank invite dollars.
And turn those dollars into treasury securities if they don't turn those ballots into treasury securities.
Those dollars go out of circulation.
The -- can print new dollars and by the same treasury securities they are my terrorizing our debt -- we could monitor writes our debt for ourselves this is a giant shell game.
I have said this over and over again get out.
There is -- CBS affiliate not to mention another network don't beat up on me here in town that's had me on the radio talk about had talked about this numerous times.
And they've asked the Treasury Department.
To come over a repeal me.
But you know the Treasury Department does it or person to US CR they call them and -- all currencies the treasury department's problem there is a yellow straight as why -- the sidelines and it.
FL football game running right.
Tim got -- back the fact is that these things can be dealt with wake up and attacks on Dolly on conversion.
That would essentially raise the price of Chinese imports to what they would be.
If the currency was correctly value we still import lots of stuff because of their labor cost advantage but we -- import lots of stuff that we're not supposed to.
And that would bring them to the table.
And -- it doesn't link in the table we'll take those revenues and subsidize their exports into China.
If we can't you know to complain escaped with that is essentially what they're doing with their currency manipulation.
-- the treasury is listening out.
Anybody over there can -- back.
Well I understand it I think that's why oh why can't they joke I think they don't we have a -- problem in the White House.
Let me tell you Larry Summers understated -- -- Ben Bernanke's textbook on macroeconomics.
The -- -- model is right there.
If you fixed exchange rates in the way that you do.
You notre monetary policy calling him up and if you look I thought I thought he had an incident what's -- that's not I'm not doing it what -- and I think I'm.
Think that that.
I think they -- that argument that you just made I don't think Obama really understands how central banking or money works.
He's setting the policy and people like Geithner and Bernanke and others basically.
Wrapped their minds around those thoughts to make it work.
For example you read the names manufacturing policy.
It looks like the work a sophomore -- -- green industries to be the future so all of a sudden say we're gonna focus everything in that direction you sure reflections of that in today's -- the reality is.
Green industries are not gonna replace all the jobs that -- lost for very long time.
Do you really think we're gonna create five million jobs in alternative energy sources -- that we had to worry eighteen months into the skies administration we should have a million half of those.
Obama wearing a -- -- an Internet campaign promise and actually -- they had their replacing -- good jobs with one alternative energy capsule actually in the -- not even that it's one out of ten -- replace -- -- look at that lives numbers today.
Look at that private.
Sector jobs are creating it's not -- that that's the problem you really when I was a boy in New York City.
We still have horses on the streets.
For a long time all technologies and new technologies exist in parallel.
We are going to be doing all -- industrial things in the global economy for a long time before things like batteries electric cars solar cells replace.
And things of that nature Iraq.
We have to have a chunk of that all we are simply going to go the way of ancient Rome.
That's so why did he didn't predict flag out and run for office and we are going to campaign for you professor Peter breezy down and University of Maryland thank you -- as well if get all fired up for us stay cool fair.
This is normal for Peter and we know that that's that's flat and -- our guys see -- soon.
I know we did -- Dare I even ask what -- your -- all tell you bomb that was actually a modesty and -- festival.
-- I ran where eight years cleric recently said look we -- gonna start.
Anti western style hair cuts within the country.
Is that the modesty in -- festival which is awesome movie just like one not slow the us festival in law Okaloosa.
In my modesty and LB EI LEI.
-- festival yes that's -- but it's a festival.
What -- we celebrated celebrating the fact that we are going to you do away with western influences in I ran.
So -- -- -- with no ties.
Obviously skimpy clothing on women daytime notice the suns' hands on women a bigtime no no.
In western style -- including mullets.
Mullets like that one right there I would.
And buried under the jail and in Wendy Parker by the way would come with me my prom -- She does it should be a separate jail though and of the bush a full on the bush it would be a crime rate.
Now they are celebrating the fact that they wanna cover themselves and had to -- that's exactly writes this cleric said quote.
Many women who do not dress modestly modestly lead young -- -- and spread adultery society which increases earthquakes.
That is a quote.
This is what we are up against folks.
That could and we're we're stuck here at -- -- and so what you say it we're gonna swing and it at a summit in a minute talk with the Iranians -- we gonna talk sense.
We're not gonna there's no sense because we're just gonna cause earthquakes.
And that's you know you never -- anything -- of that yet they break and you wish I had that kind of power.
-- -- -- -- -- By that Moline I'd like -- -- guys there when it calls -- I've been -- Tracy -- Dow still up 127 points were holding onto it.
It is hot here in New York City it is actually really beautiful though out and Sun Valley right now where Adam Shapiro is.
Tech and media -- are all out there as well for the annual mogul best when he eighth annual isn't it Adam.
-- tell us what's -- on it looks gorgeous out there.
It is gorgeous you know got cut a beautiful piece of creation and -- it Sun Valley and no earthquakes Tracy people -- dressing appropriately here so.
Police a lot of CEOs.
Very casual not in the kind of world where you would -- -- and this is the kind of place.
Where they might say they're not -- any deals there is deal making going on with -- talking about it years ago.
That I kept city's sole killer struck the deal to sell this ABC to Disney.
Now the question is will does the perhaps be looking to sell ABC we're gonna talk about that -- -- elicited some of the people who we have videotapes coming in.
Who are attending some of the conferences and seminars this -- if -- Katzenberg.
Bobby Cody -- of Rupert and when he Murdoch what we would know them -- -- Ron Myers Charlie Rose Tom Brokaw.
Bob Iger Don Graham.
Washington Post you know -- as we tried some music perhaps.
So there's a lot of talk that there aren't -- many deals being done but then yesterday yet had.
Driving off to get a cup of coffee with Eric Schmidt from Google.
And people wondering if maybe the you know the fisticuffs of the contention -- the competitive friendly competitive business nature between those two companies might be trying to strike -- deal -- the things are talking about today.
Entertainment in the digital age old Bob Iger would know a lot about that the CEO president of Walt Disney.
And -- -- ABC essentially the parent company what does the parent company of ABC talk to us is he's going and first he said -- I -- we asked him what about an ABC being sold to somebody he said.
And this is a quote from -- I'm not here to make a deal OK so he says he's not making any deals right now that was the ABC issue he was named to the president's export commission that was announced this morning.
He talked about the role of exports and imports and he doesn't think financial regulation moving through congress left too much impact on.
His business but that's I think every one you and I can relate to is this whole transition into new immediate effect that will be watching TV shows and all kinds of movies on not just TVs but on ipads and on droids on cellphones and I.
Asked him specifically.
Will it ABC or perhaps other media companies content producers be looking at exclusive deals.
-- say just apple that you could only watch that programming on their device and here's what he told us.
I think you'll see some limited exclusively.
-- certain circumstances but I think -- I can't speak for the other companies -- from our perspective we're looking for.
And under the most effective circumstances which is which means reaching people.
In easy to use.
Environments -- good navigation and also environments where we can.
Create value -- monitor us.
And of course they will be talking today seven are underway right now the impact of the health -- legislation.
Tomorrow they're going to be tight about women in technology in fact -- Monica Crowley.
Will be here they're also going to talk tomorrow about Europe the seminar is titled -- -- today.
Which wanna talk what they really mean what the talking about there's going to be Greece and Spain and European debt they did talk about social Internet and you know -- Facebook's of the world and social networking.
That on Friday they have a seminar on global risk.
That's been a headline of late hasn't it especially with people getting a little worried about what's happening.
With this alleged worldwide recovery and on Saturday -- big question mark General David Petraeus.
He is scheduled to address the attendees but of course is new responsibilities.
In Afghanistan may keep him from being here.
But the elite are here this is the place for the elite need to eat me eat well they drink well as well I think he -- they think well as well but I getting back to the more important issue.
Bob Iger and ABC how about a deal let's make a deal he says he's not here to make a deal Rupert Murdoch has me here by the way tried asked him a few questions.
About MySpace and recreating MySpace to compete with FaceBook hopefully we'll be talking with him about that in the coming days Tracy.
It's jets out of the media -- -- Sun Valley all week long with a -- reports from you throughout the rest of the week thanks -- I told you talk more about LeBron James.
-- cliff Caplan is here once again president van Wagner sports and entertainment.
Of course a former executive in the NBA's well there's a lot of fanfare and for good reason not only because LeBron James but Dwyane Wade.
Bosh this is the biggest free -- bonanza we've maybe ever seen in India.
It's -- I think that's really the the big story that's emerging during NBA free agency right now so much.
Hype and attention has been focused on on LeBron what I've been focus on is the conversation is going 67 players deep -- for the NBA.
To be top of mind and so top of mind.
A few weeks past the conclusion of the finals is is great for the NBA it's great for the teams that are pitching and we've all these athletes.
And again I keep coming back to -- so many people are talking as much about LeBron is they're talking about.
Bausch and the other players in free agency class through -- why this sudden emergence of all these free agents yeah -- -- it's a unique.
Combination of things that have been taking place.
We have these superstar athletes that emerged a few years ago.
And their contracts lines and such a way that they were all becoming free agents right now so when these athletes come out of high school or college and go into the NBA for the first time.
You don't know who exactly is gonna become the superstar you've got a pretty good feeling.
But all of a sudden there was a group of these 5678.
Athletes that became phenomenal talents and their contracts for staggered in such a way.
That this is the season that they can look moved to other team.
It's you know when you talk about that -- the financial impact per city gates had a really hard to determine because you -- A Chicago says over the life of this contract LeBron could be mean three billion dollar economic impact -- -- got -- and others say it is the knicks finally make the playoffs if they win a championship it would be sixty million dollars.
Is it to the economic and.
It's tough and it's almost impossible come up with with a precise number I kind of look at this I would liken it will a ripple effect in the -- it starts with the impact on the team itself.
And you look at the revenues for this team they'll be positively significantly positively impacted sponsorship season ticket sales luxury suites.
Then you go out beyond the team the broadcast rights holders for the teams that are televising or putting the games on radio then beyond that.
The businesses in the area and that more probably beyond that.
Tourism people coming in to watch a superstar and -- athlete like LeBron it's got a very significant and -- were -- ripple effect.
From a financial standpoint the other thing is the sense of pride that a community also has with having.
An elite athlete.
Like LeBron just like Chicago had with Michael Jordan the eighty's and ninety's.
And then if that team can be lucky enough to win a championship again that additional pride that the city has of having championed.
In their -- -- are relevant right -- comes down to -- decision.
So if you're on the ground right now and you're making the decision to wanna I mean shouldn't it be weighing that deep to mention he has been -- very heavily right now.
Yeah I don't think we'll.
Bronze earning potential or joint venture with Nike or any other organization.
Is impacted in any way.
Whatsoever by what city goes to.
LeBron is a transcendent figure in sports and entertainment he's a national figure.
He's an international figure his earning potential in no way will be limited based upon what city got -- -- -- if he and it doesn't win.
Yet even if you choose the team that doesn't win -- athlete.
He's he's the face of the NBA right now.
Anybody that wants to do business with LeBron is going to be able to get in touch with a bronze LeBron can get in touch with them.
I think while LeBron will be sizing up the economics of the deal and the city that he goes so I think he's just as much right now sizing up his chances to win a championship.
LeBron has been an MVP in the -- in the lead athlete an all star every single year he's played the one thing LeBron hasn't gone.
On the court is when a championship and for an athlete like LeBron.
Just like with Michael Jordan that is the key thing for him right now.
What do you make of his entrepreneurial skills and -- you talk about the joint venture with Nike certainly we've seen him in so many ads.
But now is sort of taking it to the next level.
Tweeting that he's gonna have a special on ESP and tomorrow night one hour long special and he basically.
Called up the most powerful name in sports media the end of said I wanna have a special primetime tomorrow night you guys in and they said where and that's pretty powerful stuff -- It's -- it's an incredible statement a testament to the position that LeBron has in the sports and entertainment world.
He is a very unique person I won't -- see -- say athlete he's a very unique person.
He's got the gift I think he's what yet his life in segments right now there's the professional playing career part of his club.
His his life -- and I think he's looking -- beyond that he's I think he's developed a relationship with Warren -- over the course of the year.
And he's he's a guy who's tapping into great brain power because I think it's been one of his stated goals he wants to be the first athlete billionaire.
And again going back Michael Jordan Michael Jordan parlayed a great professional playing career he owns an NBA team right now I think LeBron is looking at things the same way.
And -- -- necessarily have to be limited to just sports but it can be a variety of different business ventures and he's in the unique position.
But he can reach out all these people and tap into their thinking.
You said it comes down to one thing charisma.
I mean people person right that's basically what you're saying I'm G-7 do you -- -- as like.
The next generation Michael Jordan.
Yes very definitely he's he's a unique personality he's the person who play just as well on an ESPN sports center interview as he can on Oprah.
There aren't too many athletes or entertainers that and play in both worlds out there but for a guy.
Who's incredibly gifted.
Lives the life that he does he comes across as likable he's got charisma.
And he comes across as a relatively well rooted well -- person.
We'll find out in about 1235.
Hours or so -- ends up where do you think he finally end.
Yeah idea going back to last -- and even throughout the course of the spring.
I felt that he's child of Ohio.
You grew -- down the road.
From Cleveland and Akron I think at the end of the day -- in the stay with the cavaliers I think it means something to LeBron to bring a championship to his home state to his home city.
And I think that's playing heavily into his thinking right now let alone the fact that the cavaliers can offer him more money.
The other team and -- And I know we have to go but -- to your point they have to bring somebody -- on form right -- -- Scottie -- that's right he needs Scottie -- and they'll work on that -- -- I suppose -- all the work on that through trades he got them to the finals a couple of years ago but -- -- -- put him over the -- -- got to -- -- -- supporting -- -- And he's also spent his whole life watching how his neighbors in northern Ohio -- hated Art Modell for moving the browns.
To Baltimore he doesn't want to be that one -- just below Art Modell in terms most hated Heidi you know hot.
I take great -- -- this -- let's have Kaplan president van Wagner sports entertainment.
And giving us is in input and insight into LeBron James situation and I take a break -- -- up even more now 144 point solid.
We'll stay with move in this market -- On the back -- -- dot com live -- holding -- -- up a little -- it's almost 140 points right now.
Chris -- Tracy -- -- talk before the break about LeBron and where he's going and why were obsessed with it and since we are.
Brady and doing a little -- opens totally unofficial -- think he's gonna and we've been talking about the heat in during the break Miami Heat I think and that's the way I -- wild card IDC go to lectures -- It probably will not do that there on the outside looking in Miami Chicago Cleveland.
New York are your top four -- I say in Miami Chicago Cleveland New York yet that I.
Jersey outside looking in LA clippers still possibility I thought that would be neat to have Colby on one side of town.
And on the other side of town vying for you know supremacy within the cities like he's less worse give us your thoughts but just let us know what you think where you think you'll finally -- -- we'll find out.
Tomorrow sometime I'm guessing at like 959.
Because he's got that one hour special -- the whole first half of the show talking about his legacy -- second half of the show we'll have people there.
You know roundtable discussion in -- very and you'll say.
This is where I'm going to put -- what's your -- Jim -- I think he stays in Cleveland.
Yeah I think that's him.
Because his mom's probably there have -- with the stick by him other than a 143 points to the upside is really -- right now.
All my don't think that's probably number one his choice but -- -- it's probably I was -- all mom what's moving the market higher -- -- -- mother.
For a second -- at Family Dollar Stores down in the surprises me because it's a dollar and people are buying this stuff touring the whole recession.
First up -- the -- quarter earnings actually increased 19% you know but.
They got -- -- it's slower growth.
Coming in under expectations going forward and then -- for the stock is down the numbers were good sensor sales were up five and a half percent this is problematic.
-- by the way earning season begins next Monday officially right right Alcoa -- we're gonna see a lot of this.
Still doing very well but expectations moving up for -- family dollar and saying you know what second half never gonna have some headwind and then people and assaults on.
And it's heads -- their -- and let's face straight and we'll see that a lot -- Dollar Thrifty Automotive Group on the other hand though.
Upkeep of good forecast believe it or not they gave an upbeat second quarter guidance good projections sending it lower -- -- for the rest of the year.
They reduce their rental income.
But below expectations even still sucks up -- half percent and serious cracks me Africa's depending it's like that it's and come on now but nevertheless the stock -- -- six and a half percent because -- increase in subscriber base by 6%.
I get on -- -- -- she hasn't mentioned earlier and leading the financials today S&P 500 leader reported second quarter profit well above.
It's an institutional money management firm in their -- seeing revenue trends improve all good.
And the next list we talked about this earlier on Barney they provide memory subsystems.
I believe or not -- selected the company for their data recovering retention systems.
And the stock is up 21%.
Even though it was selected by Dell.
Well whatever that went on percent if you know -- -- they're happy about it.
Thank you so much -- -- on it.
In the market talented and is on the desk -- right now reaches record.
Catalysts investors -- to see -- continue to be here where are we see this is one thing we talk about all the time here mainly because we're in the media business so -- -- advertising dollars.
Where is he going where's it coming from and we still find that that people are having a hard time monetize and some of the web sites out there is this still a problem for a lot of these companies finding ways to make money.
Yeah they -- revenue opportunity on the Internet is is smaller than it is in traditional media and that's one of the things that the people who -- traditional media.
Tend to have a problem with is that it's it's not as good business and it's a better it's and it's a very good product for the people buying advertising.
It's it's more targeted.
It's more efficient so it cheaper.
Which is good for people buying advertising but -- -- problem for for an immediate business Patricia needed.
Why -- am I paying for advertising these days when.
I have Twitter and FaceBook have so much stuff for free why would anybody especially start put money into this kind.
Because you can target the exact demographic.
Type of person you're looking for you can target.
What -- shop for previously called behavioral advertising.
There a lot of different ways of the Internet allows you to target.
In a way that you can't do with the traditional advertising -- which is more broad -- So a lot of dollars are -- actually migrating that way is not just following the eyeballs.
People are people like the product better as a way to reach their target audience.
So we have -- revenue streams coming into these online companies.
Think the question is valuing them I think that's the other issue what we've seen is -- some money -- money can't commit we can't find ways to bring money in.
But how do we know how to value these companies when everything changes so rapidly -- FaceBook with -- certainly is not worth what we thought it was.
What's MySpace would be it certainly isn't worth what we originally thought it was how do you value these companies invest in the knowing how much the work yet.
Very hard and they're they're very ethical businesses that can -- very quickly follow very quickly so traditionally.
A lot of the businesses have been.
Overvalued particularly the private companies and if you look at public companies they actually don't -- crazy multiples.
-- typically traded at.
Traditional media multiples of the good guys really to -- the private company to venture backed companies that you're seeing it bought for.
Very very high prices and and value very high levels like you -- the FaceBook.
It's it's it's when you actually have actual metrics in cash -- to be valued off of that you start coming down -- a little bit.
Service is -- -- these deals.
So can you explain a little bit about how -- What it -- you guys do.
Yeah we we invest in growth sectors in the economy so it's.
That a lot of Internet related businesses both on the services side software side.
As well as on the digital media side.
We -- -- target areas that we think are our have a lot of growth ahead of them for the next five to ten years.
And invest in either buying other companies doing consolidating companies or just backing management -- to -- in -- and -- marketing -- -- -- There is stimulus money to be had out there is certainly thought about broadband we've even heard over the last week the president coming out and saying what was it 700.
-- in that range of new money be put to is expanding broadband.
That obviously plays a big role in the what you look at it doesn't.
Gasoline guys in and there's a lot opportunity.
Expanding broadband to rural areas both.
Wireless and wired fiber optic.
Deployments as well.
And yet in a lot of investment than he's been in urban areas to mignon though with your your -- -- perfect coverage and and people are now using more more -- so it's -- big is big wave investment that continues to need to happen.
Is some of that investment and waiting to find out what the government is gonna do because ill -- that's a big part of it is well private -- -- -- -- -- -- on the sudden -- dealing with a government contract over here that.
Makes mine you know.
It's just not very competitive.
Yet there's a lot of that where -- particularly in the rural areas where sometimes is not economical to invest.
-- a traditional base straight up basis and Yemeni government help to really really do that so I think there's a lot of people going after that money.
We've seen that a lot most people don't get it is very very hard to get the money -- it says very small subset but actually get so where I have to.
We think a lot of opportunity -- Internet both in software as a service.
In digital media in marketing services.
And also you can see in health care as well another big growth area economy.
Especially into chris' point they're gonna invest and computer rising medical records and things like that goes down -- -- just there to thank you so much for being -- -- -- -- I hadn't thought and research director catalyst investors.
Thank you -- Thank you still 132 points on the Dow right now.
You know it's.
It's one of those things were you looking to hold that he didn't holding SA -- 170 earlier in the day.
We actually dropped in negative territory.
In the last hour Charles Payne this morning actually made a very good point consumer credit numbers came out late yesterday was one of those -- and economic data that we sort of overlooked.
Because we all thought the four -- week -- short week short trading week there isn't a whole lot of economic data.
Given what we saw last week was a big week -- get that comes out buying starts the end up 57 points on the -- we continue that today.
We started out the day that would downgrades from JPMorgan on that credit card companies right Visa Mastercard.
And got -- one and just yesterday they upgraded Goldman Sachs so Tom Brady or senior editor and I -- gone back we're talking about this a little is that a fact is that kind of -- -- -- -- downgrade on the consumer.
And as somewhat of an upgrade on the big banks you downgrading the visa and MasterCard wife is what we're paying for bills dealing with -- down and when I isn't.
So what does that mean we're just not -- That's the big thing the MasterCard and visa what's track action story right there right you're looking at the more you use that card the more money it is.
Four those two Standard and -- also warning as well Sandra Smith is with -- -- here on the desk in I guess you know.
Standard imports still carries a lot of weight so when they give you some advice on what to do with your money people pay attention -- -- Catfish today right now there is stating sort of the obvious but a lot of people aussies that do follow -- -- what they suggest you do.
They are saying.
Decrease your equity exposure increase your bond exposure not by much.
But right now -- -- before they were suggesting that you have the stock exposure 45% years portfolio.
They're saying -- that to 40%.
But bump up your bond exposure from what -- -- originally suggesting for 21 -- ten from 25% to 30% so.
Simple math there they just want you to be a little bit safer as we head into what they're saying is it looming bear market.
Not hard to predict that right now when you look at where we are in the S&P 500 obviously that's the broader gauge of the market more stocks means more reliable.
S&P 500 down 16%.
Happy days back in April when we were rally after rally to rally we had a -- 1217 S&P 500 back in April.
We're down just shy 16% since then few more percent -- -- bear market territory by definition it's a 20% pullback.
From those recent highs so it's within striking distance but -- not just saying that they're also saying we can go even lower from there we could see 883.
In the S&P 500 as we head into the fall months but the little to be sure here -- Don't think that it's all doom and gloom don't completely get out your equity positions based on that.
The strategists and analysts over S&P are saying that they expect.
The market to finish up this S&P 500 finished up 1190s.
I told you this -- on Friday.
I'll let us down at Chicago Mercantile Exchange ended 17% jump from where we are today by the way sending off they told you guys on Friday when I was down on the -- -- Chicago.
Was I talked to a financial analyst at eighty yen.
Who sagging obviously there's a lot of things being -- out there but he did tell us.
That often times after three day weekends you see a reversal in the trend in the market yeah.
And we're kinda -- that was you come back might be a short term trend that we're seeing right now.
As -- have a couple days -- rallies but he did say often people go home and sentiment changes just a bit.
People who had been selling come back -- this are buying.
After the long weekend so how do you finalized in keeping totally counterintuitive I mean I it's me it.
Based on where we are based on the fact that so much -- in bond funds already they're recommending they -- basically you can't make any money that's really -- solo by Italian car all the costs and -- you -- and hash -- out.
They have to -- more money and equities you got people selling yen and at the bottom.
I mean I don't know I just to me it's seems fits well and that's where so that's where we'll look at other strategist Credit Suisse.
Actually came out -- -- in Barron's over the weekend at fair value in the S&P 500.
Today by the -- were trading at 1041 to put this in perspective fair value is 1050 just about where we are now.
Contend that the 1150.
Anything below there which we are today.
They are recommending declines by defensive.
Stocks -- that's your Kimberly-Clark -- Johnson and Johnson's.
By -- senior Frito is as good as I mean that's that's where they say to be -- while were under fair value heading into what could be.
A sell -- here in the in the fall months but it does sound off.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But I -- 667.
We -- halted if we -- my thing is 667 was that was pricing in financial Armageddon.
That's march of 2009 financial -- 83.
Is sort you know we are we getting close isn't Armageddon anymore.
Is it because if you start -- -- attacking technicals and you want us to look at your support levels and the S&P 500.
They're saying support will not be found in the SP -- we hit 950.
But why do we look at support levels because of the market falls through there -- selling will exacerbate and get worse so they use them a bottoming out level of 883 I mean it's only reasonable that they.
-- -- number out there where this who wouldn't be where we bottom up lubricants and your point.
Very very low volume in summer could swing it's just that exactly and that's what all the guys in the -- saying -- -- lot of doom and gloom out there saying hey a lot of the problems even people come back from their summer vacations.
The problems by European debt concerns a problem about the slowing.
Global recovery bill still.
Be there and then when people come back and there's nothing better the selling will continue and things got worse out but again -- Does it say it's gonna get worse into the fall months are also saying that things are -- shape up and get.
Smith thank you go out thanks for being with us thanks for the trade well done by the -- and -- items coming up in Iowa where eighty C Jeff -- orange -- out on his silence Allison a mile long one of those weeks.
At least another -- -- was like him and like treacherous conditions early but it isn't enough.
-- -- -- -- -- -- -- If if if if if that.
Todd and burns 146.
A during the break it's it's phenomenally is dividing coming violate you don't want parting company used to watching -- -- when he 2:11 o'clock on the -- is that we have a lot of fun again during that show producer.
We do and he takes it very well and he's he's very easy to bust chops on.
Jeff Flock joins us right now we're having a funny him because he's been down the Gulf Coast the last literally two months today.
You're out of the water and what -- got rough out there did the weather is not cooperating with anybody down.
It's been tough ever since the tropical storm turned into a hurricane and you know that that really it's they hadn't stopped and you know what it's -- -- they're sort of interesting to see this up close and personal.
-- and but the water level -- what's pushing water up into the up into the marshlands.
And you know if you look -- water it's almost right to the edge there at the top of the dock here when we first came here was maybe a quarter -- down itself.
It what that's what happens when you get wind that.
In this area of the country you get water pushed up into the marshes is what happens -- -- game that was to a lesser extent.
Here when you get this kind of activity now here's the other thing it's push -- push -- oil now -- -- -- places like.
What's called barely carry a path that but we've got some pictures we were out here this morning we want to see how rough things where water -- decision.
The rough conditions we found.
Globs of oil and are not big but you know what what's happened is because of the rough seas it's broken the oil up from you know big slicks.
And it's now in these tiny little balls in the water.
But you know they either -- -- G old -- they wind up you know what tar balls somewhere.
And it's headed into the -- so.
Not good not good at all.
-- what are -- waiting on now are we is -- the next one coming up is that we worry about.
It would be.
What -- what they're that is it's a tropical wave now just come off the Yucatan.
I just saw some of the latest tracking on it.
Not clear that it's going to become a tropical system and if it doesn't get any stronger it's not gonna kick the waves up any worse than they -- so.
The prognosis is that it'll get a little bit better as we go on here provided I think doesn't testify that given that about a I think it's a 40% chance.
Intensification right now our potential becoming a tropical system so hopefully that backwards that's -- -- near -- but that's the problem.
-- system still kick up the way it still push the water.
And you still get these problems.
Just think -- you freaking me out this morning saying that conditions were treacherous and you do not need to get on live -- I was scared -- you pull water.
-- Jersey I never opened Barney get day if -- remember that back what is deposition that day.
I try to get rid of that this year -- but there you -- And here vehicle Chris off here's the slicker -- -- -- only cost me 275.
Dollars and -- it's a really good -- better value.
Possibly having had that thanks thanks Jeff thank you they cited government be staying.
I've got these safe.
It was terrible this morning I was really scared actually when when he said he was interviewed the report just.
They believe does there are no hurricane's waves or oils balls out San Francisco right now Schwartz set it loose with CEO of Bill Swancutt dot com.
One of the coolest sites out there thank you so much your being with us -- you know we've been hearing a lot lately that.
Delinquencies are down people are paying their bills even now bankruptcies might be up year -- year they're coming down on a month to month basis.
Are people started take charge of their lives.
-- that if he had -- would be find is people come courtside but advised civilization to a -- gotten credit.
We find that 67% of people are going Gerstein actually paying off their -- each month.
Art paying off their credit card balances the -- 25% off from a year ago the wrong about forty -- are people who are doing that before.
The turning point was around November when.
-- -- more people paying off their dad actually increased.
More than a number of people actually carrying about a month month and.
Short are we seeing a difference in the way people are using plastic.
Debit cards vs credit cards to different types of credit cards.
-- -- -- -- think a lot more people are moving to data a little bit easier to manage your spend when you're using a debit card.
It is our special one of the fastest growing payments humans.
We also are seeing a lot more people assigned to pay off their balances because -- fair allocation law.
You can actually -- the exactly how long it's gonna take for you pay off depending on how much you pay off.
A lot of these got introduced with a -- car back and I think factories causing them to.
How can their payments to the right card -- will want bounces onto the low interest card.
Traveling in a cool things about the site is that you can put your information in an can help you figure out you know -- -- paying too much for your wireless service -- -- you can find a better interest -- and on your savings account.
Is -- -- -- that you can track what people are looking for the most these days is it.
Credit card interest rates is it wireless bills.
I was literally I think we do track exactly what -- -- demolished and most people would actually being little more responsible about their bills.
Wireless bills happens to be one of them most -- partial -- web site.
TV and cable services are also very popular.
-- of credit cards and -- -- talked earlier I think.
More people are now looking for a war was based credit cards because there are actually paying off their balances than then that -- based on low interest car.
Speaking of rewards based credit cards you know will a big news over last weekend about how.
Move there their rewards based credit cards from Bank of America Barclays and they told all the customers -- got to use your points.
By the end of August -- they're going to.
The NFL not stay with Bank of America while -- Bank of America not want to stay with the NFL seems like a marriage made haven't.
As -- and I think a lot of these things are driven by a lot of regulatory environment in the alas.
As -- is what what it is what is necessary for BankAmerica -- Look at that -- portfolio.
So if you look at all the people that NFL cards.
There are being held by people on the alas they might have a certain credit profile.
That -- America is less comfortable at -- Barclays might be willing to take on.
A lot of this might have to do with a portfolio that actually -- present for either company.
So you're saying is three people who put their information in and use it.
Are you making money in this permit.
Absolutely I think we make money when -- -- -- customers money and almost everybody.
The needs to be doing a lot more of that right now.
To every time we help someone actually find a better deal with either the current card -- phones TV plans.
The retailers -- and make a purchase from but the better plan oftentimes.
Gives those revenues so what -- quite well.
Are you finding that it obviously.
People are getting fewer and fewer offers in the mail for credit cards.
But he finding that if you need.
Consumer credit it's more available now than maybe it was a year ago or a year and a half ago obese does it still is still need to thought.
It did it still needs to buy I think a lot of the things we're seeing right now is their credit is a little more hard to get today.
I doubted never be as easy to get as it was a couple years ago.
Probably spent a month on the little -- too much for the last.
And probably come back more of the firm -- its stock quite there yet but it's getting a lot better now that was the year ago.
-- up quickly just about savings rates out there.
You people put money into savings accounts and it's like this anemic little rate these -- are you seeing -- get better at all.
Absolutely I think we do see a lot more people saving more now than they did before.
We actually do have an application allows you to forgot exactly ways you put your money if you had any money to put away.
We golf course recommend that if you have a credit card balance the best place to do to put your money is on -- cart cart policy should pay it off as much as you can.
And not put money in -- thing that -- But if you do not have claimed that it does not have an -- design and it credit cards that indictment might make sense to put money -- a way to finish the count.
And we do see the things that actually coming up.
That you are such -- thank you so much for joining us so is that it's elegant.
Sealed bill shrink dot com and beautiful San Francisco and a couple minutes left you know it's also clear on.
Now flattening of course -- will but I'll laugh and a loving way loving man in black and season because prince caught my time.
Now I have to tell -- obviously I I don't know -- real name anymore because wasn't -- that a sign didn't take -- -- that's right you're right changes name to just this time as a sign it right onions are it will -- declared on our.
-- -- -- -- That's it done basically what.
What's interesting about this is he back in the day when -- -- first artists embrace the way.
He put his albums out there I think he made his announcement that he was a symbol on the web today.
Okay now he's saying it's done watching in my music app referring.
Why should I put it out there I get up that you can look at pass an app for free and you digital and you get -- point.
Now at the point but you've gone and he said this to that and UK's deli near this -- where this rate was MTV newsroom picked it up and you go through the comments and they were all like.
Say what you want -- it is what it is basically they were saying you know -- your music out that we're not listening to it.
And that's been decided yet while the other says -- is I mean listen to any -- of course ER.
And united a little red Corvette I could listen to that don't what was that -- Little red -- was 1983.
Quote I think that's the burning acres is the partying -- partying like it's 1999.
When -- out that came out that that's great but again that has nothing to do it hey I'm gonna stop.
The Internet -- not only help.
But no one's listening to him he's irrelevant now he was -- In the eighties he isn't anymore.
And said that he's dead anyway so it doesn't matter or better yet another comment was he needs to die.
So that we start listening to his music that is a little bit harsh it's -- a lot of it.
-- -- -- -- -- And I still say that all the craziness.
Fine -- These great musician and I have not taken that would ever happen is they'll split -- on the terms that.
That hot zone that was apple now is somebody else -- -- you today.
-- -- You know.
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