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They got viewing guide you to get through these -- -- -- the Dow down 97 points.
Go and ended Friday we -- it is a lot going on unemployment claims up yet again number came in disappointing.
Came in and around for seventy -- -- you know we're on our way back to that 500000 mark again nobody wants to see that.
Challenger gray says more layoffs coming ADP was -- -- all about jobs and apparently they're not out there and not -- any time soon.
-- -- -- senator of all you look at this above board right now and where 9671.
You're praying that we're 9671.
By the end of the day tomorrow because again we're here right now at noon on Thursday.
We've got as you mention huge jobs report that all indications it's going to be disappointing on Friday morning.
And then every trader in in the world is -- not in the world because the world is not entirely close on Monday only we are every trader on the island of stock exchange.
It's gonna run for the Hamptons and we are going to be closed for three days and they're going to be opened in Europe and in -- open in Asia on Monday and all hell could break loose and there's nothing anybody could do about it here.
Right so -- that begs the question why would you all anything of this long -- that's the fear right right I mean who -- -- in Spain could shut down of the crazier things have happened.
-- -- -- -- he's with us right here on the desk chief investment officer of Bank of New York Mellon this is it is scary isn't right now.
It the market doesn't have a very good field say the least there's a tremendous amount of skepticism.
I meet with -- investors retail.
Institutional investors and there's just investors are backing capital preservation mode.
And I think investors aren't as worried about making money in the market and missing -- potential rally as they are to your point.
Going into a long weekend and and losing additional capital.
Yeah because there's a lot there's a lot that's unfortunately not unstable ground right now when we we just talked about jobs jobs are up in the air but then there's all the stuff coming at a DC.
Financial regulatory reform we don't know what that's going to be at the end health -- stay on the line people who really -- about the future.
Yeah I I think that's right I think but we have to realize that we're in an economic recovery and right now doesn't feel like it but.
Our view is that we're going to have a three to 4% growth globally and here in the US right.
But it's a recovery.
Not a strong expansion we don't get into real expansion mode until employment starts kicking and employment not kicking him because as we talked to CEOs and CFOs.
Everyone's hesitant to make big capital spending decisions higher a lot of people because of the uncertainty that you just mentioned right.
What's my tax -- going to be for the next.
My affected by cap and trade if I'm financial company what's my future you know tax situation looking like.
How does the financial reform act affect me if -- the financial -- so there's an above normal degree of uncertainty out there.
That is not only preventing investors from short of making decisions in a market that's looking increasingly better valued right.
But also CEO's and CFO saying you know before I put in place that they hiring plan let me just be a little more cautious so that's -- it's going to be sub par recovery.
I'm I'm seeing loops you know yes and we talked about another -- whether it was.
Consumer confidence and spending in things like that no one's gonna spend anything -- because they're on -- they're not confident about the market the market -- because people aren't confident.
We're seeing these loops had a break out -- -- you know well I think we have to clear up some of the some of the uncertainty right that's that's been moving overhead.
Look housing is recovering but today another report.
That came out you know pending home sales were down 30% expectation down fifteen -- today.
You have a couple of bad reports right you have the ISM report a little weaker than expected on the manufacturing side the home report none on unemployment claims a little higher than expected.
That in advance of the monthly payroll report tomorrow in advance of a long weekend.
Not surprising the market is really setting.
Let's remember the market is defined by the S&P from last march through the end of this April.
Up 80% right we've taken 1516%.
Off of that.
But we had a tremendous run.
I would argue a lot of this is -- -- of expectations.
But just got a little bit ahead of themselves given how well markets -- Performance on the spot of that real quickly because they you can also look back though to summer of 2008 we did fall 2008 before Lehman Brothers and you could say well.
We've already sort of had that -- -- -- down from where we were obviously not a 141000 on the Dow would that give you some indication of where we off -- off of the lows so.
Are we getting east -- that equilibrium where we probably should be at this point -- are using this level ways to go before we.
Well I think you know it's a time when valuation.
Is not back in the vocabulary right -- so many big picture concerns.
Employment right this is -- time I think investors should be thinking bottom up right because valuations.
Particularly of individual companies are starting to look reasonable again then we have a number for the S&P this year earnings eighty dollars and six months ago that was aggressive.
Consensus then got above and beyond that eighty dollars now what's happening is consensus is moving back down with the -- again that's that -- -- that I talked about earlier.
But at today's market we've got a market now trading at less than thirteen times earnings for this year probably around eleven times next year.
In in the context of low inflation and really low interest rates right.
That's a very reasonable valuation level for a market so I think we have to keep that in mind that there's been as as we've discussed.
A lot of concern a lot of uncertainty but we've got a market that at minimum is reasonably valued.
And within the market there are some pretty attractive opportunities and that.
Makes the case for dollar cost average your way back into this market because we talked a lot about being guilty by association.
Christie's in their off a little slogans about bath water and anxiety that you bring itself.
But that's what happens a lot of this market a lot of -- -- there's a lot of companies that are down for no reason other than the fact that.
-- happening you know but on paper right financial statement valuations they look good.
I think oil has become a bad word because look we had a tough quarter -- we had a flash crash we had an oil spill we had your back.
And isn't as an example energy stocks and anything related to oil sort of been painted with that brush -- one of those areas that I think looks pretty attractive right now.
High single digit multiples with three and 4% dividend yields aren't working you find that in companies that I think our long term secure safe crop growers.
Be -- energy any energy sector -- graded integrated energy Exxon's and never on its you know I mean for 33 to 4% dividend yields were right now there there.
Oil you know that's an area I don't really want -- so that's just one example of taking a look from the bottom up and say you know what.
I could be early I could be wrong for another quarter or two.
What if I truly have a timeframe that anything north of a couple quarters -- these are these tend to be good entry points if your bottom up oriented investor.
The city got burned in 2008 you know and a lot of people try to catch falling knives in the fall 2008 you know Woodstock was down 3% I love the company -- -- -- -- here next thing you know it's down 50% and they haven't made that money back yet.
-- you want to take on some risk you're one of stuff to catch in the mattress but you want something that's.
Can can ride out the storm so to speak over the next few months what areas do you look at to say yet capital preservation yes but it gives you some -- -- some upside.
I I think we're back in an environment where look on the bond side -- yield spreads also reflected.
Too much complacency and by that I mean.
All of those corporate bonds and tax free bonds that trade against treasuries.
We're trading below their ten year average spreads right that's no longer the case.
So we can now once again find tax free municipal bonds for investors in higher tax brackets.
With eight to twelve year maturities that are providing yields of three to 4%.
Tax free if you -- the within your own state.
You get the double to it now.
Most of us believe that taxes direction -- are probably moving higher and so while three to 4% doesn't sound like jaw dropper.
I think that's going to be very important anchor to windward for most investor portfolios.
And so tax free municipal bonds would be.
Would be a good -- in every state -- municipality.
Is not challenged and is not going to go bust right.
There will be more downgrades than upgrades.
But the default rate on the municipal bond market.
As a percentage of assets will remain well under 1% yet when I talked to investors when you mentioned buying.
Municipal bonds revenue bonds there's we're we're back to that period of of avoidance.
I'm from Jersey and I wouldn't -- And stick them within board's New Jersey on these days unfortunately Leo Grassley -- so much review -- if she doesn't offer officer at Bank of New York man.
We got a lot more to talk about what it's -- revenue credit card rules that come into effect today.
Jeff Flock is out of that again got eleven he's doing such great stuff.
And average action talk about some of George Washington's whiskey I read about him today the second big -- housing and jobs of the well enough what all the little one in the same -- yeah that's.
-- got -- 120 points not very good I'm Chris cutter Tracy Byrnes foxbusiness.com.
Live -- housing a big part of why we're down today and Kessler joins us once again managing director ran mortgage.
Here right up the road in the north of the seeing Andrew good to see how disappointing numbers today on housing or were they really and not not -- unexpectedly -- the -- and it was expected number.
Or I mean we had such built up demand in February march April because the tax credit expiring on April 30 to be under contract the expectation was he.
Well what happens on May first and we -- -- was going to be a sluggish month simply because.
All -- people went out and bought in February march and April so the expectation was -- wasn't going to be the best month.
Nor -- June when the numbers come out going to be anything robust.
Although we're expecting that kind of going into the summer that we think -- it'll start stabilizing as far as the purchases again in the under contract.
Probably late summer early fall and the jobs obviously gonna have a a tremendous amount to do with it -- that rolls on as this you're going.
After that happened because we have foreclosures on the rise we haven't seen the best of the prime mortgage market yet those are starting to tumble.
So we have these really low interest rates out there but no one's touching them.
And yet we have how home prices that are inevitably gonna have to fall in it in order to compete with the overabundance.
Foreclosure market -- it really all depends on what you're looking to buy if you're looking for the -- and property.
You might see some still drop in values but the lower -- stuff from the moderate stuff for a first time home buyer can still getting.
Competing with the foreclosures competing with the short sales are still hot do you still think bidding war you're still -- -- prices increase on that stuff.
Because that's your low entry into the market and as you said with a low interest rates we just had four point five day and Freddie Mac's report this week.
Which is unbelievable -- that we're talking historic lows but your borrowing at such a cheap rate that's what's gonna keep the values -- and maintaining stability.
Is that at some point time -- a spur more demand though because I keep thinking if we keep hearing from people are interest rates gonna go higher they got to go lower and the answer is.
They can't go much slower than this -- -- -- -- low numbers here or soulful people that are on the -- finally use that as an excuse to jump -- we hope.
I mean the thought is it that anytime you have rates go up and sudden period of time you all the sudden get all the people on the fence and jump right in and we haven't seen that we thought I was gonna happen April 1.
Where we thought we're gonna see you rates in the low to mid five.
Didn't happen private sector came in sort of buying a mortgage backed securities and kept rates low and we're still seeing rates under 5% now we're talking four and a half.
The big key here is homebuilders are still not building at the pace that we need as as a market.
So what you're finding is yes these foreclosures are coming on the market the shorts over coming on the market sellers are trying to sell.
But you're not having -- the new home starts that's not.
Coming into play as a was a couple years ago.
So the inventory is not you know doubling or tripling as -- was if you go back to 0607.
When builders are building any possible alike -- -- we don't want these guys yet I think that marketers to purge itself of all -- really very.
We need to have the market be stable give -- take for about a year for home -- really feel confident to start building for what we need.
Roughly we need about a million have homes built every year to meet the demand of what's coming onto the market.
As of right now they're building probably about 600000 homes which is obviously 900000 less than what you'd expect him to build -- a -- here.
So that's going to be not by.
The other homes that are being pent up for what's the deal with the extension homebuyers tax extension Omar's credit when it was bound to happen is great that it passed.
About a hundred -- 80000 people would have qualified for this if it ended June 30 but they couldn't get their paperwork done in this is really just an issue of yet everybody trying to apply for a mortgage the same time that banks could handle that they couldn't put temporary staff and by the time they got them all up and running it would have been -- over and done with.
This extension does not -- any new people that would have qualified already you can't go under contract today and apply -- this how to the other Contra for April 30.
Now they're just taking that the deadline of June 30 and moving it to September 30 allowing people some flexibility of closing.
In the coming months so think -- operative.
I mean this extension now also goes to the point of why.
Home prices to continue to -- a lot of the sales we saw recently.
We're foreclosures and short sales and the paperwork on that -- disasters.
What actually a lot more time it's all those people need to close their deals in order to get it done they needed that extra time I thought it was a reasonable extension for them.
But just adds to the case that we'll probably gonna C a a drop further in most home prices.
-- I'm on the belief that I believe it'll be level I don't see a significant drop in certain local markets you might -- -- 5% but I don't see double digit drop -- anywhere around the country.
Unless there's an isolated situation that something happens and obviously it's gonna drop -- is looking at the national picture I don't seen major drops coming.
Because you have so many things -- stabilized rates are low.
Home affordability is all time -- -- all these indicators that are allowing people to -- by.
A great deals separate -- Well that again that's the key that if something major happens -- and everything's off another big thing that happened with the extension of the home credit with the flood insurance.
Government passed out at the national home flood insurance has been extended to September 30 because that was nowhere to be found over the past month does not expire at the end of may.
It's going retro to may 31 that anybody was looking for flood insurance.
Who couldn't close -- along the past month is now going to be able to close those loans and be able to get it don't follow through things always tell him thank you have.
-- Kessler coming down into the city managing director of -- mortgage getting as -- -- and housing numbers today.
Not so good but as through San.
A two unexpected even -- they were for the month of may.
Peter Barnes joins us right now from DC with yet.
Another pressing issue for the administration is that they didn't have enough on their -- Peter now it's all about immigration reform isn't it.
The president's the Energizer -- yeah here try you know taking helped by immigration reform now and yet another speech on this issue this -- -- gotten Health Care Reform done now they're wrapping up financial regulation reform.
-- -- Odds are they're not going to be able to get this through congress any time this year as you know it's very difficult particularly going into an election -- to take on such a heavy.
Controversial hot button issue like immigration reform particularly when unemployment is still hovering around 10% -- people are out of work looking for jobs in the not really.
Interested in having new workers come in you know it legally or illegally through some well through some reform process legally.
Most folks looking at this as more of a political speech.
That helped by the president's stay out front -- the issue he won the Hispanic vote overwhelmingly.
In the last election -- Hispanics.
Breaking for the democrats' big time and going into the mid terms wants to make sure that he is.
Still pro immigration reform a big issue for Hispanic voters come come going into November.
I mean Peter he said -- up its political speech you know what you wanna get a political -- -- talk to people about their jobs and have them and that's all we care about.
Seems simulate threat like this little kid with ADD doesn't know what the focus on -- did everything.
Well you know -- the guy and they get -- to -- he said right at the top of his speech.
Just because you know we've got all these difficult issues and I've got a full agenda doesn't mean we shouldn't try to give it a push and sure.
Go ahead but the reality is is that.
It's going to be very difficult for our -- the senate in particular in the house you know -- -- you -- do whatever it wants it has the number has the members to do it.
There is some Republican support for doing something but in the senate.
It's just that the clock is running out there very busy it's are going to be hard for them to get anything done and the lead.
A supporter of the immigration reform effort for Republicans Lindsey Graham of South Carolina.
Decided to back out of that effort after the democratic leader Harry Reid said that he was going to push.
I think that which issue ahead of that one and so -- Lindsey -- on strike and without him -- not gonna get anything through the senate this year.
I don't know -- -- remember Peter this -- I mean you can't get ahead -- out every night -- peninsula and it's not so do.
It really is yeah and and you know a lot of this is being stoked up by that new immigration reform law in Arizona that's very -- at a controversial at the very top law.
So so the president needs to get out -- wants try to get out ahead of that as well the administration is very concerned.
That because Washington has not been able to get its act together on this for the last decade.
That now the states are taking this into their own hands and they're gonna end up with a patchwork system that's that's probably gonna cause more problems than that than it solved.
So he's he's if that's obviously driving a lot of -- of attention.
To this issue driving a lot of the debate towards -- issue majority of voters support this Arizona law according to the polls so the president at least test tube.
You don't look like he's he's trying to get something done and I think he does want to get something done but it it just the politics ever gonna make it difficult for this year.
Thanks now thanks Peter thanks to you there OK guys if if DC on this and want -- gonna make a quick on this is that.
Doesn't want to alienate Latino voting base and you think about the others to that are going to be running in mid term elections is right around the corner they really don't wanna -- -- Right now there's gonna alienate that base and the president at least has a couple of years.
Where he's thinking something is going to get done for those in this midterm election it's it's right -- on the court it's more about what you -- in what you do now.
Have you seen the ads that with.
The Arizona governor standing in front of that sign that they have seen -- -- Dangerous territory so it's disgraceful.
Really is -- so some see something has to be done and you have likely.
Peter would you say a majority of the voters.
Agree with the Arizona bill right which is which is you know -- -- that says something right there but you have a very small.
Pocket of very.
You know influential and and dedicated voter base that lets you know voter base that they're there for the most part didn't go in one direction do you lose that.
Very you know concentrate a pocket.
On questions they have the answers will obviously be -- coming -- what else by Iraq decides that senate.
Believe it or not.
Have the decent and inflation over the last ten years so your dollar in 2000 is now worth about a dollar 27 today so.
Pack of gum was a buck.
Now to doubt when it and it's decent look there aren't bunch of products and things out there that are actually cheaper today and I thought this is interesting -- dot com.
But this little list together of stuff that's actually cheaper today than it was ten years ago.
One of the things it when I was -- The -- Wal-Mart stock but late in the stock market on that this -- that I found interesting was.
A mortgage for instance a Georgia got another thirty year fixed mortgage your you do the whole pay -- ten years ago it was over 600 grand today.
With our current rates as we just saying historical lows at about 456000.
That's a big -- and a big difference.
Airfare this -- this -- about all the time these guys have priced themselves out of the business.
Your average ticket was about 318 dollars ten years ago with inflation it should be around 400 and yet.
It's the exact same price.
Yeah and this is one thing people complain about the airlines tooth and nail their nickel and dime and us.
But to actually -- it is up about 21% -- says they have not kept up with -- actually taking care of you.
When it comes the pricing yes.
Even not a big Mac is cheaper today than it was -- -- -- I've that's interesting -- -- -- obesity rates and himself but you know it really is you know is greater menu options at these fast food restaurants so.
It's not only about going in and ordering a big Mac and Fries now you have so many other options and more expensive options salads and -- like that mean I go to -- easier so Lofton that everybody knows me there and the manager was sure to give me a -- supplier for the new sounds.
-- -- you don't have what it is yet.
No well and give flyer for the new any salad avenues out yet -- themselves -- came due and it.
Actually I -- -- -- I can't let editing equipment I was a Harley-Davidson sports there.
Hot hot little cute little bike.
Was about 5600.
Dollars in 2000 it should be seven grand today.
A little bit off it's like.
High success -- well that's the U -- you said why it's less today you just call it it's a hot little.
Bite you little -- I think it hasn't it's -- -- it's -- Harley-Davidson it's not it's not -- cute little like it would be the -- again if I had to get -- and that's your problem so there are things that are -- today -- as much as we complain galactic packed -- of the little sports there.
-- that they take.
I'm polite and play it and you feel good and Google Wal-Mart -- incredibly popular.
-- -- -- -- first time ever percent -- Wal-Mart I now I am well 124 points he's that a lot was talking about like we have Steve Jobs.
It was video evidence -- we're gonna talk about very real estate commercial real statement -- back.
Markets stabilizing the lower but right about a 125 points now which is -- basically where we have been -- -- the first hour of trading day there as you can see on the graph.
Traces something's moving its lowest kind of a scary game is -- big jobs number tomorrow and of course long weekend so you gotta wonder who's gonna wanna stay long over that weekend but.
You know move the market long way to this Bulls and Bears every day in somebody's making money -- or who's losing.
Love them -- going on -- Arena Pharmaceuticals actually was is whether -- -- -- five.
Up -- -- today Arena Pharmaceuticals.
Signed a deal with a Japanese company to.
Market their obesity drug here in the states and that stacks up almost 6%.
Smith & Wesson now this got wonder if it's up for the right.
Fiscal -- a profit.
Probably not fell 64%.
Overhead expenses acquisition related costs killed them but the beat expectations you can believe -- 64% drop.
The expectations so Smith and Lindsey Smith & Wesson.
4% today as don't know them.
-- -- -- And popped -- we mention this last week that they were thing to put himself on the block the stock went up on the -- up again today because it's official look for signs sales in the ground.
-- is an -- brakes and clutches in transmissions and all things that I think about.
They are gonna try to sell themselves they hired people to go out search for buyer then it -- -- believe it or not as well.
Now green equity investors reported a nine point 5% stake in the company.
And they've alluded to the fact that they too would like to take that whole thing that they say it's undervalued markets not -- not and then we'll be done about initiating Newton unappreciated we want to take Brad and stocks about 12% believe it or not.
And Christopher & Banks and this -- threw me for a loop.
Because it's clothing for women.
I didn't know whole heck -- a lot about it so I looked out.
Stock is up 21% first quarter earnings increased sharply believe it or not they have sales growth better -- than you name it they got it going on.
It's close for.
Like Christopher & Banks -- them like -- about the company with -- -- what it sounds like it sounds like.
Close the librarians okay my right on that my -- and -- is -- about my close on the I'm I'm an insult you you can.
I said it it's down to Christopher & Banks and selling a place where strippers -- ago.
Think of solutions and awareness Saturday night I figured out written note to hassles actress for doing it well though if you start searching.
Don't put -- I promise -- we talk about commercials that was to have right now Michael Torres joins -- CEO and portfolio manager at analog take capital of the West Coast San Francisco Michael welcome Michelle.
Might be with you you know we talk an awful lot about residential real estate on the shall we really don't talk about the commercial market as much.
And I think people are are a little fearful.
That this might be the other shoe to drop although it hasn't dropped yet I think people had been waiting for it to this point time are you optimistic about the recovery prospects in commercial real state.
I sure am I mean we're three years off for the peaked back in 2007.
And -- commercial real states clearly a supply and demand game which a little different than residential.
And right now we've obviously had the financial crisis.
Create the vacancies in the properties and now -- of about.
The economy recovering and taking up the existing vacancy.
I'm excited about it.
Before we get to your next because I thought -- some of them are really interesting.
Many commercial properties are held by community the loan to help my community banks.
Community banks are struggling these days these guys start to the -- I -- that could really kill.
These banks we're hearing that community properties are holding a lot a community banks holding a lot of these loans you don't worry about the -- on these loans all going forward.
Again in the commercial real estate area we've been focusing on the publicly traded companies today.
They hold much larger assets that the community banks.
Could -- finance the -- community bank assets are really.
Properties strip -- small duplex is a very different market.
Then what you have the ability to buy only a publicly traded real -- company.
It is separation isn't -- different wells and what you're saying we had a lowly community led by probably -- gonna go down.
And you got the big guys that -- more backing to them.
Without question I mean you know he talked about that company's.
We've seen about 35 billion dollars for the new equity raised for commercial real -- -- last twelve months that's.
Might you talk about publicly traded -- In in just made a point that it's two separate worlds are we talking about two separate worlds with the reads that than a lot of other equities that are that are -- and right now because there's so much nervousness about corporate America even with the prospect of good earnings coming up this season I mean are you looking at reads in a completely separate way.
Well I think again real estate is supply and demand.
Equation that you need to look at we've obviously.
Had our challenges down 73%.
-- back in 2007.
And there was a question of how would you refinance the debt because he's our capital intensive companies.
And what you're sorry to see is that.
Corporations have downsized OK it's in the form a vacancy today.
But as businesses start to get the earnings power hire back.
Employees that creates demand we're not building new supply.
Which is a great equation for owners of -- -- -- We're gonna listen to your picks now I'm an attempt -- -- -- -- properties its favorite it's probably the one that most people know.
When I didn't know -- 70% of their portfolios of properties here in Manhattan as well as DC.
You got the whole financial community you know especially here in Manhattan and -- did -- just did a piece recently saying.
They've had to come office space they might shut down certain things because of financial regulatory reform does that play into the equation -- here for you.
Yes it it sure does I mean you know Boston properties was.
And owner on in a park avenue 399 park.
They did lose women they've successfully back filled the space again part of what you have is -- wanna be.
In good located assets with strong owners I think that's really important that.
You know -- and probably is clearly one of the strongest owners and you know talking about another -- -- -- -- -- -- that's all sinners.
Where it's located -- -- -- properties are located really struck me lost in DC.
Baltimore where we're actually seeing pretty good residential real estate market in a very it did decent jobs market comparatively.
In a real state is a location -- game when you look at the company's you can look at these footprints sauls a great example.
A regional player -- in the right place.
You know they've obviously.
Brought assaults a -- what he brought down the leverage and now -- question back filling that space there about 93% occupied there's upside.
Talk about national health -- properties this whole space is very interesting to me because you have this is basically.
Senior housing long term care facilities.
You know are boomers are living longer are they're still there I got -- Atlanta upside here.
Yeah I think we don't you just.
Articulated really part of the thesis and just.
Part of thesis where what's interesting to us about NHP is that they have been aggressive moving into the medical office building space.
And so they are getting office locations close to hospitals.
And so you're getting that kind of more commercial real -- characteristics.
Which are -- upward moving leases.
Relative to the long term leases -- sale lease backs in the nursing home where.
That that's it's a booming area Michael thanks so much for sharing your thoughts with us.
Great thanks be with you.
-- are dancing with my hands CEO and a parliamentary act say capital beat some very interesting ones who don't understand them now could they have a different.
Tax structure makes -- -- have to distributes that everything.
You get a dividend from -- -- it's sometimes taxed differently depending so little.
Little complicated the same time and you get access to -- he's saying he's not property -- Well -- and.
And also be -- think very volatile too as he said.
-- having two very capital intensive of these since it was Wellesley you have to eat your -- -- to watch the debt.
Your point though is a good when we don't talk enough about commercial real -- and there are still angry because many people think that.
We're through it and I I'm not sure I'm convinced it's also not as.
Part of everybody's everyday lives as residential real thing Odyssey everybody has a -- -- -- you renting.
Most people own so everybody has a home.
But the great majority of people do anyways but that nobody really realizes what goes into the shopping centers the offices where you work and whatnot.
And -- that's a part of our lives stooges who don't really equated that there's there's decent deals -- Spoke to someone recently -- a little small business he got space from Citigroup because they were shut stepped down they had to get out at least is that they gave my whole arm.
The they like the conferencing equipment you name ultimately yeah just not you know what -- -- and -- You know we're gonna talk about next having getting in my mail I'm getting inundated.
From credit card companies but I from banks about -- this is how we're gonna change.
If you want to change your overdraft protection -- here or go online do this and that so banks have been setting up for.
This day this is the big day wouldn't talk to somebody about that when we come back.
Look back foxnews.com hi Chris cutter Tracy -- were up a little bit more than we certainly -- down I think about a 125 was our love the Dow is now that about 95.
I guess it's better than it continual dissents.
We -- talk about Chris is getting all these things and now a lot of you were getting things in the now from cracker company about the rules that are changing -- talking about them for awhile now on today's big day.
Jerry -- others here credit advisor at credit dot com to hash it all out okay.
Most important thing people need to know as of today.
Well -- -- your debit card not your credit kind if you having debit card associated with your checking account and you don't happen overdraft line of credit set up you're giving you a choice.
If you spend more money than is in your account to have the choice you can either opt in and make sure that purchase goes through -- aren't embarrassed that the cash register with -- -- -- -- theater overdraft fee usually about 35 to forty bucks.
If you if you don't opt in and by default you opt out.
That they will decline may have purchase at the cash register that interestingly we surveyed consumers recently credit found about half the little women have said.
I want to update I don't wanna be embarrassed at the cash register.
That overdraft fees -- cat now.
The overdraft fee is not capital you know they've got congress as well the Fed has recently capped -- late fees on credit cards but not a debit card so could be any amount it could also be multiple debit card -- -- there if an alternative most banks lets you set up an overdraft line of credit.
Or they might let you have money transfer from your savings -- checking you'll still the -- for that but it's not going to be that 3540 bucks.
That you could pay if you let this standard overdraft go through.
I start -- overdraft fees -- bang and it left tonight does that affect my credit at the end of -- down.
It does not affect your credit because debit cards are not report to the credit bureaus so there's no impact on your credit history but -- your bank account yeah we'll share.
And it can also end up in -- -- credit bureau called Texas which is a credit bureau that monitors -- checking account activity.
And if you get in Texas -- some of -- negative record it's hard to open a checking account that many financial -- It was great.
Question -- like yeah you're welcome bill and it -- -- with that now.
Statements have to be more transparent and this is really subjective isn't it -- -- How do you know what one person stands as understandable and another person is totally confused -- Well it is that is in this -- -- credit cards in this case.
The Fed has set out some guidelines -- really good news is now they have to tell you how much it's gonna cost and how long it will take to pay off your balance if you just make minimum payment.
I don't you -- to your credit card statement -- times -- thirty years and you know you have thousands of dollars in interest yet they also show you what the payment would be if you need to pay off that -- -- -- -- that count in three years -- left.
And that's a really good tool for consumers to say -- help that numbers too high.
I got to reach out for help.
Actually got one recently it was three and seven years dramatic difference in it right it certainly gives you pause if you do read it.
Yeah I agree with Chris I mean.
-- unique transparent is somebody knocks on my door and says this is what you need to know out of your statement that's transparently when he gets up in the mail on this 4000 people in the on -- meaning my kids.
You don't read anything.
So transparency is really tough to define.
Well the good thing with this debit card overdraft changes that if you do nothing that you won't be up to the end so basically you could have a purchase turned down at the cash register -- hopefully have a back up.
Payment method you can -- -- credit Carter.
A different have a -- in cash and and -- your purchase that way choke off of it.
You know now the only commercials were seeing more of than gold commercials by the free credits.
And the evidence -- they Avant hasn't all little guy.
Whether it's the pirates singing about it what not to read and everybody's free free free but they're not really free -- -- Well usually those services are going to charge you something for your credit score is now if the financial regulatory reform bill passes -- it stands right now.
And consumers will start getting some of free credit scores how all the time but if you were denied credit for something basing your credit score you have a -- increase costs for credit based on your credit score.
You will get a free copy of your credit score along with that notice right now you get the notice that you get a free copy of your credit report written but.
I'll have people say you know I see the data but I don't know what it means how -- -- -- -- -- and fortunately most lenders use the cycle of course if you do it turned out and -- become -- and you'll probably see a cycle school.
Taught at and not let -- how often should check that.
I think you check your credit report every year for -- here.
Your credit score opted and we do have a free to a credit that -- truly free content you're part of it all right well he did it.
Because if they step on it that you don't want on the kids alone how to get it -- -- people who -- processes many.
Terry and I thank you so much credit either credit dot com go everybody over the holiday weekend could you got nothing better do good check that's going.
I react to the general -- for this part of the show since we started rich Edson.
George Washington's whiskey out and about an available again I read -- story I loved it.
I'm so glad you're on what's going on you taste it.
I've read the employee handbook.
They tasted -- but I have heard.
That it's awfully harsh has quite a kick.
To it it's actually cleared right here wow this is 85 dollars for 375 milliliters back in 7099.
You could get a gallon.
For six cents but -- the story is that a general Washington came back from being president.
He started distilling he was quite successful at the distillery burnt down and -- fourteenth they've rebuilt it it's right behind us and now they are making it.
Brand new whiskey with an old recipe I'm here with Steve they sure Steve how close is this procedure to what we -- seen 799.
It's very very -- to -- they were doing we have the same old equipment designed peel away and we follow the same procedures and recipe that Washington did and what's this recipe like -- attempted to make bottle this -- -- about two weeks to do a hundred gallons.
You keep in mind and 799 Washington's been -- 111000 -- they can imagine the work here for those people and and so what we're looking -- here is it is a replica of what is it pretty close to what the general would have -- had he walked here in 799.
Yes it is it's based on archaeology we did seven years of archaeology and rebuilt on the same footprints so everything you -- -- place in the exact same spot Steve thank you very much -- -- You know you gotta think about general Washington known as the father of our nation -- phenomenal general an athlete a land surveyor.
And he was also quite.
That is amazing -- you know it.
It's ironic here you are looking very comfortable out there in the -- with a bottle listing your hand today usually -- see -- in the White House.
The -- construct single aisle behind you and that's when you really need a bottle whiskey.
That's right lie again.
Because of the employ him -- -- -- -- there isn't whiskey at the White House that there is.
But it's -- I think it does a lot calmer than.
I would know nothing about it but I will tell you this is a much calmer and much more beautiful day than all the construction.
That we often get at the White House and we did speak to general Washington so and and areas that there is enough but enough of that stuff you might think that you know.
I think -- banks writes.
Thanks guys yeah except that you know what I -- is that's just data Mount -- talking about your drive with the -- of the -- Get any time -- I need somebody needed gift for somebody who wasn't sure it was risky no question that's.
85 dollars -- -- of kind of bottles are benefit mount Vernon's education and -- Also helps the benefit because in that -- and I even -- question getting into an alcoholic.
Estimate was key question please what's price differential between George Washington and the stuff -- drink.
And it wolf it's 85 dollars for that -- he had -- a that's a significant price increase them.
And an old crow -- -- you have the middle of the -- in the ground area nearly maker's -- or something like that but yet but more expensive.
Maybe that's what that's my -- I would think so that -- so that would -- -- like a thirty dollar bottle of -- vs the 85 -- -- even less than thirty make.
That that break right.
And I think that was.
Jeff Flock to join us on his -- And Kristen -- it does -- -- back.
That's -- I'm excited he's back to talk about -- -- with you not if I'm learning this if things work and that will be proud.
-- -- -- -- -- -- Well somebody who's.
Going to be able to buy an awful lot of those bottles and expect her good Watson was he LeBron James free agency starts today although he's been recorded by a bunch it seems to be a little while before he signs deal.
Mom I just wanna clarify actually this morning -- -- company I misspoke.
I say makes a lot less money than he actually makes he makes about me fifteen point seven million dollars this year -- outside the -- that extension a few years back.
It is money accelerated.
So -- made -- -- -- -- around five million dollars the first year of his deal but it has accelerated since then how much can -- -- -- does he stand to make.
If you resize the Cleveland you will reassign under the Larry Bird claws now what that says if -- -- -- like the Celtic and -- of labor and what they did back then was they said look if the other veteran that means this much to your team he's been there for as long as Larry Bird -- with the Celtics.
Will let you sign him for more money than the salary cap would allow also became the Larry Bird.
A clause would labor exception.
And so that's really your premier and here yet you've been around long enough money.
You have been around since they won't so what Cleveland did do they can -- for six years.
Wore -- an average of 22 million dollars per year about.
And other teams can -- for five years for an average of about.
Nineteen to twenty million dollars -- and that's your -- about nineteen million dollars a year for five years with 22 million dollars a year.
For six years that that's about what he can get paid.
-- -- that's too much.
You know I've got this is hoping discussing how to act but that doesn't count.
Endorsements he makes about 28 to 35 million dollars a year -- -- So -- connect.
This guy's got his deal with Nike which hit it right some little joint venture that we were talking about earlier and everyone -- this -- -- He needs to win in order for him to sell -- right I get that much where will he win more.
Well I -- a great idea for how -- -- this is the teams are Cleveland Chicago Miami new York New Jersey.
Let's see what it -- joke and -- Alfredsson -- then they won't be alone a what if you went to the clippers LA.
You have -- on one side of town yet LeBron on the other and a pretty good supporting cast there was serious kind of letter until they and they would play each other more times and then than they have than they ever do now.
Because it would -- be in the same division.
The West Coast it's great for the Chinese market and when talks about LeBron how important is it with Nike in China.
I think it would be great.
My personal beating -- take a little less money but you'd be -- LA and he wouldn't be second fiddle -- -- either first of all he's younger and LeBron is not second filled anybody in the in Pakistan this is.
-- -- -- say why would come to new York and be lake with.
With -- Euro will be good and other big names when you can just -- -- Cleveland.
Well that's the other thing too and that's respond that's why I think he's physically.
And it's either Cleveland -- Chicago I think he's physically.
He's gonna make a lot of money either -- Jeff Flock joins us right now they give a lot of money is always money talk about tourism right now and a jet and without question.
There are people losing money in the tourism business down the Gulf Coast I guess the real question is how much are they lose.
It's clear people losing money particularly -- folks in New Orleans.
They're kind of caught between rock and a hard place little bit because.
You know they want to send them it's number one that this city is still open they're doing fancy camera -- editor at.
-- advocates you know you get down in the French Quarter to get here -- -- the French didn't see these folks this cafe du -- here which perhaps exceed.
They they don't want to send a message that the world is closed for.
Oil spill look at these guys they got another thing is there to show -- that your wife powdered sugar there.
It's gonna -- I -- -- major sugar rush before you're done by the very doping case are you folks from out of town meddling.
We're from -- from Toronto.
And I don't -- -- did you can cancel your trip because of the oil spill that none of them and I drove him that that's.
You didn't give any thought to -- no matter -- Still open for business and you know there'd been something that people say -- hear reports that there's oil in the streets and all the rest.
They want to make sure that they send a message that north is open at the same time I think there are legitimately.
But businesses that have lost money.
But you know Ken Feinberg was saying yesterday that the claims administrator.
Committee hearing -- Capitol Hill.
That some of these -- -- -- not be contents of you know if you're in Florida somewhere you don't have oil on the beach but some people cancel their reservations.
That may just have to be you know tell -- so.
On -- little idea how it shakes out -- both sides that's going to have because he could have broad on the other side of that.
It would be very difficult to man.
-- and a lot of good.
-- -- play it in it's difficult anyway because.
I think he got fishermen for example and end just to be straight up and honest with you some of these fishermen and lobster and that ultimately shrimpers and and the craft guys.
They don't necessarily.
All of them report all of their -- -- -- taxes that's just a flat out truth.
And so when you go to try and prove that hey -- -- you know X number dollars last year.
And you can file a claim for that you may.
And not be able to prove that so now is it fair to pay those people words that I've heard -- didn't say we'll GE C didn't pay taxes and banging.
And then that money is still being made here in New Orleans there -- -- needs to be made all.
I can't then prepare how much do.
You're the star and the wedeman.
Look at our -- we've been talking this Fella who were just talking about we're talking about the the oil spill compensation so anyway.
You don't want to fill has money to back out there you go oh yeah thank you so my step black man on.
Well tourism is yeah.
-- people are having issues good lord.
I -- actually is a story that intrigues me we're going out to Edward Levine president of -- university.
On their success believe -- -- not a pleasing graduates high jobs this is an amazing little story so are welcome to -- Thanks so much good to be here OK so first.
You have a 100% graduation is that true.
No we don't have a 100%.
Graduation rate from every student that starts but we have an extraordinary graduate rate where.
In very high percentage of students who start with -- us ultimately graduate and the cool thing about that is there.
Vast majority are graduating within two and a half years just ten quarters or we like to say 500.
Days of education I.
Graduated five and a half years Edward and I did not have a job waiting for me when I got my degree in hand select.
What makes that your school so much different then the other you know that traditional state schools.
And makes you so successful.
Great question well.
We do is we start from the very beginning of the education.
On making that connection between the student the skills both soft and hard feels that that's student needs and the definition of those skills by employers we take.
Very seriously making that connection between employers and the outcome our students are -- yet and the education that we provide while -- in and -- it.
-- -- believe that that's what most universities do right especially the kids that are enrolled in the business programs -- I know your computer science program you can do in two and a half years and come out with a bachelor's degree that is geared towards getting -- job.
I believe that's -- goal of -- most universities.
Most most universities all universities are about education.
Some -- about educating.
Around theory we're -- about educating around the practical skills and we like to be measured me like those outcomes to be clearly measured.
And we like to talk.
Have to incoming students in currently enrolled students about what's going to happen at the end of their education and that is.
That we all of a clear goal it's stepping out of new month having to work three offers for really cool jobs that launch you into a career -- -- don't know.
Yes -- yet sorry.
I was a segment of the academia plays some too much too great of a role.
In some of these other colleges and and isn't about preparing you for what you gonna do when you leave the schools.
They have companies got involved with you at Newmont it's it's sort of tell you -- this is what we wants.
This is what we're looking for.
Exactly we can't do it with out those companies that are.
Intensely and -- in.
Being in line to recruit are students so our secret sauces that.
We have employer projects on quarter every quarter and for the last three quarters of their education.
Our students are working on real life projects projects that were assigned by IBM or Nike.
Were you today and their building.
For both companies what's what's cool about that is.
The employees of those companies get the look over the shoulder of the students and it's like a ten week interview.
Each of those quarters is exposure for a student to a company and accompany the student and they can make their own match and that's how.
We get these outstanding placement rates.
You're doing it about 250 students right now seen as small student body.
So are these kids videos buried directed I mean I know I had no idea what I wanted to do in college.
I was an arts liberal arts major error that was my junior I still didn't have a -- -- I guess this isn't.
Different group tickets.
It's -- -- you went to high school with with kids like this -- these are people who are very interested in technology.
And are less interested.
In the amenities surrounding.
Because they want to focus on me efficient path.
To that placement so you know you.
The college experiences there were surrounded by -- group beautiful mountains were right in Europe a vibrant city.
But they -- intense focuses on.
That love of technology and making that connection with that -- player so they're willing to work hard for two and a half years.
And they get a tremendous return on that investment of time.
Correct me if I'm wrong here Edward geographically located in Salt Lake City streets and -- 250 students.
Tuition -- correct 72000.
Dollars for the entire degree why don't you have 250000.
Students it seems like this is a no brainer for a lot of kids coming at a high school.
If it really is it's a great program and we are growing it and you know it's right now we have two degree offerings at the bachelor's degree level we're going to be adding two more.
That the program is growing and we don't aspire to 250000.
But this is definitely a -- model for education that's working for.
People on both ends the student the employer and our employees are having great time.
It -- in corporate America before you came here he works for designed products company -- you weren't there hands on.
Has how has that helped.
You create this program for these kids.
Well new lot university -- like other higher education institutions I've been involved with is all about.
Serving the student obviously the student comes first.
You have to wrap that student concerning the commercial package and make sure everything makes sense so.
My prior experience.
With building companies -- growing.
Organizations has been useful.
But what makes this stand out is the equality of the product that's really a wonderful thing to be around.
It seems like that 72000 dollars for the entire agrees is inexpensive and -- you -- your private school so you're not getting taxpayer money.
How how do you make ends meet with -- with what seems to me like it's 70000 dollars to learn that these students not a lot of money.
It is an end there is say.
There's an element to you know mention which is our scholarship program there are some scholarships that reduce -- and you 2000.
That 72000 it's over ten quarters.
Our students apply for -- -- and are awarded earned.
Financial -- from various sources.
It is an economical program but you know it's it's still a significant amount of money it's an investment in their future.
And you know moms and dads we all know your other.
Other guests of talked about some of the things going on -- America through that put pressure on all of us so.
Coming up with that is a very focused effort -- and we thought we find it's a great value -- for students but it requires that we manage Newmont efficiently and keep focused on.
Our our core strategy which is all about making that connection between.
The student in the perspective employer.
Set quickly we only have a few seconds but that what's your ideal candidate what does SATs what's his GPS -- -- hello happy yes what don't.
What's a perfect kid that comes in look like.
The perfect kid is that kid who has -- and declared interest in technology has got a little bit of experience.
Has that GPA in this.
In the three zone.
And what I'm sorry was here the question about that SAT scores.
As SAT scores we look at SAT in DCT.
So we're most focused on math somebody in.
-- -- 56700.
Range on the FCC's in their twenties.
-- could set them on the web site right now it's Newmont dot edu correct.
Newmont dot edu were easy to find in -- so uninteresting.
Interest and supporting material there for anybody interest that.
Edward thank you so much for sharing your story -- Levine president of -- university.
Way to go to Matthews the fastest time now and -- -- -- that though you and I'll be spending a 70000 dollars on the ski slopes solicited.
-- -- Married place.
-- wins and solace from -- -- -- -- --
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