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Fox Business that come having technical difficulties in -- in these -- that.
Am -- my comment on the -- on this -- even when the stage and came out and stay hammering.
The pod to try and release.
Derek smalls from the pod.
-- a bass player that's basically what we had here just a few seconds ago but Brian's inside down here.
Trying to get my computer to work.
Hell I've really wanted to come on the I was -- -- it was mesh -- hat on and his headset.
Try to decent dirty words and -- work.
And I -- at a seven gone.
We have a Dow that's up about told time because it's now we're in the air from the 21 point -- -- points to anyone point I had it.
-- -- -- that just a bit NASDAQ up about fifteen you got oil basically flat gold up three.
We got home sales unexpectedly dropped I don't we can use the word unexpectedly.
Did you actually think they're gonna go.
Pretty ridiculous to think I am but the market didn't didn't react negatively to it because I think the market at the same thing right -- it was -- -- and duck.
At the same time I do think it's dismal.
That the housing market's downturn itself it's not an analyst -- -- -- not mean what's gonna happen here we just we talked about the -- mortgage modification program this morning as well continues to be a big failure and that's not a surprise either he's every month of yet more and more data on this program the more we realize that it really is not working for one reason or another.
That's 75 billion dollars that's not working it's not like you know I -- -- and I don't like it that's.
A lot a lot of money.
Well look the fact of the matter is if you don't have a job yeah you know the pay a mortgage today.
Next month or six months from now if you still don't have a job and -- that's kind of -- I actually great but I think that part of -- -- promise.
All they do it the majority of these -- notifications are drop in interest rates.
Did Jack from me my house is underwater Vienna you know getting away pain exactly still you still under -- on your house and that's the way people say yes so.
You know we gotta talk a lot about that today we talk a lot about just what's going on in general at this market -- -- is here on the deaths and -- -- pairs of financial -- good to see it in person ring.
Well thank you it's -- with the on video and I -- level lot so this great time to be here we are enjoying new York at the -- -- hot bets a little warm.
But we're Sacramento and Phoenix so we're used to -- a little bit -- know what what do you make of what's going on what the market in general right now where we what we seem to be in a pattern where it is hard to figure out what we're doing we're really not doing a whole lot of anything.
Well all these here are thought in our psychology -- -- -- reality with our clients -- -- -- -- market going sideways but in a hurry.
And we've seen that we went back to the first time we use that phrase was in January.
And that -- within a hundred point to where it was at that point so we see a lot of volatility.
A lot of movement things that are happening in the news in the first part of Bolten 09 when we -- -- this rapid escalation.
Really didn't have an impact but they are impacting now.
People have been afraid of the markets afraid of only happening again and so there's a lot of investors that are sitting on the sidelines.
A timing to about three trillion dollars on the sidelines.
And we have a lot as you said of uncertainty coming down the -- coming at a DC coming out of the markets in general.
What's gonna happen flash trading -- -- no one knows what to do so it therefore creates energy.
It that does happen and we kind of get analysis of paralysis and people think I'm not sure so I said on the sidelines.
For one of the factors that we've seen is just like in the gulf.
Oil and water don't make a very good mix any motions and investing also don't make a very good mix and this in -- -- it throws a lot of emotion into it.
Investors need to realize -- if you're investing.
And the emotion takes over it just kills your objectivity you make you irrational decisions that are usually wrong.
So slow down step back in the value of -- great and visor is more today than we've ever seen them before.
How do you view the market though because we are -- -- an unprecedented time so how do you look back and say well.
Historically PE ratios -- this sort of historically bad because you can't really look at today and say compares to any other time in history.
And I think some of the historical things -- a little -- if you're trying to relay and the Muslim and like driving licking up the rear view mirror.
There's too much.
Distractions and too many emotions that come in its you have to have a process.
We look at it is our systems internally we look at about 151000 -- -- positions every single day.
I don't look at those manly our computers doing give us the leads on what directions we do and what technical sectors are important.
And then we're taking those back to help make decisions.
The average investor doesn't have that capability yet and it is very tough for them to sit there because.
And the market's basically are created to extract as much pain as possible.
From investors and are prepared to filter out what's background noise from what's critical and vital information.
And that filtering that out and knowing it's very difficult.
-- so let's try to help them out you give -- solicit some of the stuff you like one of the things that intrigued me with Canada.
We talked about candidate not -- -- yeah.
I think seems to get a -- -- -- a lot of bad stuff doesn't it well.
It -- and it's our neighbor up here in the north that they issue is they have very strong banking systems they didn't handle that issues that we had.
And probably and then -- -- as far in the debt issues that we have.
And if you don't create the debt you don't have as big of a burden you're carrying along this baggage with us that we're carrying our country and -- have to deal with that at some point.
-- also has a huge natural resource -- button and that commodity trade there in the metals trade the energy trade.
There and a very unique position.
So we are are liking candidate -- president in in this sort -- in the similar vein if you like Canada you have to like certain aspects the United States because of the imports sold much of -- move -- -- any.
Yeah I guess if you flip it around and say so much of so many of their exploits the arts also if they're doing well then we're obviously still buying stuff.
I agree in one of the things that we're still -- right now fairly bullish on certain places in the United States and certain sectors.
What we do like his large dividend paying well capitalized corporations.
American corporations prepared.
For a depression a year or two ago that really never showed up so they've cut back they've cut spending -- piled up cash.
They've got more efficient -- more productivity is is amazing.
Investors are looking for yield there is in any interest being made any place else right.
Few times back with you I made the thought -- -- to divvy them disappointment -- and giving unit depreciation and that's what is happening and CDs and we're talk I don't belong on CD's right now if interest rates do trend that you're going to be.
That the penalty for doing at a low interest rates so even those people who are such as even though people who are very risk averse right now there's still scared to death.
They've made me want to invest in cash and cash equivalents but they're getting a 1% on CDs or money market so.
Can they put their money and at Johnson and Johnson and Altria companies that pay a nice dividend are they safe there are safer there relatively well you can't use the word safe but yet.
And if not they should be done a 100% yet a little bit of balance.
If you do the research and that a great -- -- that knows how to guide you through this isn't a Lone Ranger businesses with a posse business.
And get somebody that you work with it has a great strength and and the dependability.
And they can help you point out some of those those areas and follow that guideline and there's so much information too much information that the average investor and -- And it filtering out as important.
I thought about Howard.
Investing in this stuff than we also like some of the emerging markets again how are you investing in Canada and emerging markets through funds through individual stocks and ETFs.
Where most ETF some individual stocks and out in a larger portfolio.
-- even some funds that are all on no load that we tend to like the economies of ETFs -- expenses -- solo.
And there's now so many that we can.
-- and in individual sectors to the right exactly.
Yet what we like and put them into our platforms mean.
That the information load is there.
And -- overload so many investors.
What are you dislike right now at this point were a little concerned on some of the commodity place.
They've had some -- so much run up we get a global -- There could be a faster decline and most of our clients are trying to be very risk averse with them.
And not going to heavy in that position.
The other thing that we're really telling clients to watch.
Is letting emotions get in front of -- you don't.
And be so afraid of this market you have to be cautious.
And don't be overly fearful that your not participating.
When you talk about commodities would you dislike -- oil and light and Exxon does it seems to fit in with your your model of large well cap companies that pay nice dividend.
Where you would you dislike of gold but maybe like.
A Freeport Mac Moran or something like that.
Well we've got a little bit of gold in most of our portfolios we -- then we think that we're not one that thinks that goals gonna go to 3000.
But we think there might be a couple hundred more points in there and then we'll be dialing back so will reach -- and grab those positions when we need him.
If I had to say -- are we going to be paying more for energy in ten years and we are today you know you're not in most people are.
-- I say would you rather be a buyer or seller of energy.
And we'd rather be a seller of that so there are some specific points even for our higher net worth clients were looking at some specific royalty positions.
Very creative and doing well they were so glad we had -- that a person that is always fun to be here I would just love it we're enjoying New York.
Well good keeping -- and come back again Greg Anderson found it hasn't financial group.
Here at the -- -- in person.
We get so much more talk about anti about housing we got about whether iris -- attacks BP's payouts love that you love tax talk I know you do.
I -- -- Elizabeth I -- that that didn't lose home.
Back -- -- my very my wrap them confused I'm sorry the Dow is up fourteen.
Hey you know hiking and today I think it was going to be turnaround Tuesday.
-- -- -- -- -- -- -- -- -- We have rob banks lots of them got plenty more bombs and we really think -- I have a problem with my bank you do we fight all the time well I -- no problems with my wedding banquet.
You -- -- saying well kids.
But you -- good as you have no problem there.
-- -- -- I had no -- I do very little with my bank that would literally is just you know deposit my check.
And that when it's in every now and I write a check every now and that's about it I don't do a whole lot -- -- -- -- -- -- my -- -- -- if you do the more you do the more -- there -- -- problems but I don't.
The thing is chases you go out of business anytime soon sell a lot of banks that may go out of business and build plug in joins us right now CEO -- and -- -- They're dead advisor firm.
He's also the author bail out rich -- -- good to see again.
Good morning good to see you again -- we really.
Underestimating this is a we the FDA seem more importantly underestimating the -- of the number of banks that are really in trouble right now.
Well and sadly they are down and they have to remain hopeful think about what they're rolling in the society.
They can't be heard you yell fire in a crowded theater so.
If the FDA few films -- and show how bad it really is quite frankly can become -- -- that.
-- the -- for moderation.
Sheila -- is probably the the best true love you this receipt of the FDA -- -- I think the phone doing a fantastic job.
But to answer your question -- -- understated they have 775.
Picks from the FDA if you troubled love.
Are left with now to 2600.
Parks -- that's a quote quite a discrepancy between the two.
You know bill lesson you -- here we talk about how the FDIC itself is broke.
That really hasn't changed has it.
You know it happens in fact I've gotten word from plus failure and I visited the last time we've -- did -- -- if you live.
Asking the better remembered thanks to pre pay a price on a billion dollars worth.
Of the next three years with a -- -- the banks have done it.
And -- if he is still broke.
So now there's no place next for them to go except to the treasury and -- happened to a 500 billion dollar line of credit which.
Certainly you know -- large enough to handle any of their problems.
But politically unacceptable for a moment because the American taxpayer to play no more bailout that.
You know bill you -- 7900 banks so if you're talking about 2600 out of 7900 banks that's a huge percentage.
Why isn't so largely what of these banks doing that is putting them at -- -- what have they done and is this recover.
Here's what they've done enough and some of its gonna be recoverable Fulmer is not mostly won't -- but the banking crisis people focus as you give -- earlier talk about.
Chief medical I gotta go infiltration -- the corporate the event.
Are not going to go out of business but in the United States we have now 7900.
Individually owned bank.
And some of those -- mom and pop open community banks and some of those quite frankly we're not very full open to begin with in this economic crisis that go on words what I'm the last quarter.
Well for 2500.
Period failed to show a profit left 4500.
-- Out of the total of 7900.
Failed to show a profit of 75 from that point 5%.
Haven't shown a profit in the last year.
-- for any other business -- store pizza chain or more clothing store.
The potential profitable last year I think we all know that doesn't bode well -- future.
They wouldn't make it a quarter up like that can you let's talk now about the fact that we haven't even really gotten to the bulk of their commercial real estate market.
You know downturn we haven't seen that bottom.
They have these new you know extend and pretend regulations can you talk a little bit about those.
Certainly here in the old days when problems happen they happen -- there were relatively immediate and the impact was relatively informal Palmer -- -- Well last October with the regulators may have to change you know whether there was a crack one or -- and park when will remain to be thing.
But they actually have to you know condoned -- not.
Downgrading won't commercial real estate loans of long if there quote unquote hole.
That the cost more fun they will be able to pace we've been cases for the collateral.
May have been actually reduced by as much as 40%.
The FDIC and the other regulators alleging that they carried along at a hundred -- thousand dollars.
What that has done and if you just -- the whole raft going through the snake not to emerge help the other brand well you and I know gravity -- gravity.
It's coming it's only -- question wanna.
Can the larger banks absorb some of these smaller banks does it make sense for them if they do -- that relieves some of that stress on the FDIC in the next couple years.
If it can't end ended with a marginal cases -- well most of the big banks as we did mention are not in great shape themselves and helpful.
Some mergers of opportunity of course they will exploit them they could be anything situation and that will relieve the FBI -- from the problem.
But quite frankly many of the banks that are likely to -- the next year and we -- Kennedy to feel so far this year and a 140 -- -- -- -- Many of them are going to be on location torn franchise areas were big bad thing.
I really don't wanna be -- and -- Cheyenne Wyoming and.
You very much.
Yeah oh yeah well the wonderful town by the yeah it is -- thank you had -- maybe -- for bank -- If -- -- that it remains and when it comes to this -- thank you so much for being on us again.
You're very welcome good you Bill Martin C apartment and a prizes that debt advisor and the other bail out Rich's last time he was here too he was at.
Did this banking conference in a -- slightly right and everybody felling it's terrible as much as I love bill -- but the website is defeatist www.
Next bank to fail dot com that the but it hit the ballot that next bank to succeed if it wouldn't -- the majority of them -- -- -- the -- -- that would say that he's here.
Ex CEO and it killed themselves.
One -- -- the bill but want to -- tell me please.
In front and -- here's why.
This caught my eye because I told you.
I am slow illegal and over the -- to the iPad side and all three -- I haven't practiced yet.
But I am certainly in the campaign can be convinced but apparently three million of you already where.
They sold three million iPods in just any -- any after the thing was introduced in the US.
-- three million iPad that was sold actually yesterday that means more have been sold today so that well over the three million mark.
-- my stock is up almost a 100% over the last few weeks but.
It's not a cheap device and -- -- on the board an hour chat earlier said I can't pay my mortgage but I gotta go buy an iPad.
And that's it's it's that's what we're doing right we're broke everywhere else.
And yet apple keeps doing it again and again -- you know there are 111000.
New iPad apps just for the iPad not to mention the other 225000.
That are available that probably -- work with the iPad.
These things craziness.
Do you know that but we're not broke and that's why people have enough money to buy ipads that sort of the point.
That people ten bucks right look at -- -- can't specify how to for the most basic multi go to with a three G above that won the center's center.
You go higher legal eagle -- of the update.
Didn't go for many people of 500 dollars now -- and -- -- -- too easily tablet that definitely caught him for something but that's -- don't think people can't afford to do it nowadays.
Not everybody does not affect the great majority of us can pay a mortgage we can pay our -- Glass half.
Full right here by the way it's not so great for Amazon.com.
And for Barnes & Noble there a price war right now -- -- Dropping the price of the Kindle down if you bought in 2007 when -- first the united they get on my plate right now about a 189 dollars the Nokia has been reduced to a 190 dollars next month borders is coming out -- their -- it's gonna sell for a 150 dollars so.
You know like you knew this is gonna -- -- the Amazon announced at the -- I was gonna -- the target yet Clinton is that is gonna reduce the price point they get a higher volume sale and if they basically just change your business model with some more of them.
For less we have those -- shorter smaller market.
And we're gonna make more money because we're gonna sell -- that's -- more.
But titles I books magazines.
People like me who waited in any good now we got our pick of the litter and I guarantee that -- -- gonna come down eventually telling me NEC but that but then as soon as an iPad comes down apple comes up with something else that's even cooler and.
You don't like the coolest thing.
In the second coolest the outcome was well so I'm comfortable enough with having the second coolest thing Chris -- I went take a break the coolest dude is going to be here on the comeback -- On the second coolest don't think this -- the president he's.
The -- foxbusiness.com live Chris got a Tracy Byrnes you added -- twenty.
Three point now that Chris cutter is the karma then it -- work movement has long since we started.
He -- makes fun of me because I am a tax dork but -- start looking at you and the man.
And this whole BP pay out thing intrigues me Adam -- here talking about taxing compensation payouts.
But for people that well they want some money at a BP he got Feinberg here in you know we talked me into my -- university -- and then.
If you get a claim get a few -- file a claim and you get some money from BP -- think you gotta pay taxes.
The big question we've been asking and called the Ways and Means Committee Sander Levin now charge.
They could pass legislation or cracked down on the ire -- say look.
Give these people an exemption because they've been through a catastrophic experience.
And it's kind of like community you don't beat -- -- -- someone -- -- down.
On the other hand.
If if this had it happen they would have to pay income on the -- they would have be taxed on the income there.
So if I'm a stripper and I earned money shrimp and I'd pay income tax well now I'm not earning money -- But I still got the income supposedly through the claims process and that's the government right now looking -- But here's thing here's why I think they will do the exemption yes -- alien being is because these people will not get that paid back.
My -- and on the not exactly so they did that paid fifty cents on the dollar of their claim.
The government gives in their -- tax break tax break everybody goes home happy the other thing you might start seeing is -- attorney start you know the wheels going if you get paid out and as an annuity annuity payments -- tax -- So maybe person it a personal injury claim we'll get paid out that way and we could see some commitment -- -- and.
Perhaps it's -- this hopefully billion dollar fund is it even to cover the personal entry stuff I -- video that is that it is designed.
-- that this is what's so mind -- mental thing there's no clarification the IR -- senator Mary Landrieu from -- was in touch with her office this morning.
They did respond pretty quickly and as she met with the IRS on Friday.
Everyone is saying.
What are the rules give us some clarification and the IRS we were in -- for them this morning and you you know it's -- need to get up at ten and start working one taken out for -- and lamented about.
They've not responded.
They don't have that the clarification and but it.
But I think it is it's it's pretty clear to me it's it's going it's counted as income right now less tenable as law is changed and does -- but it's going to be -- they did it for content political reasons I think everything and for the fact that they're not gonna get the full pay out but here's an aggregate for the -- the other issues here's the other issue it.
I don't know that's my point I don't know I -- Feinberg pick out.
Just give it an analogy it's a weak -- but it gives -- some guidance on this.
Look at the Madoff for the Stanford cases the trustee in that case is -- like mr.
Feinberg designed to.
Protect assets and then pay out what is affordable to those who have -- mr.
Feinberg does not together assets has got twenty billion over the next handling it -- into possibly more.
Into into -- this escrow account.
But he's got he can't just write -- flanked and and they've got to look at all of the quiet and then.
-- the one thing to that -- -- looked at here you know we we called Mississippi Haley barbour's office no issue there Mississippi has an income tax and there's no movement within the legislature Mississippi.
To create exemption for people in Mississippi who might be hurt by the coastal Louisiana.
-- we we have good relationship with the governor Riley's office have a call -- them to see if there is I'm sorry Alabama.
To see if there is any movement had to create an exemption for the the people who are losing income there they haven't decided yet Louisiana the hardest hit state.
Government handles office they don't have any guidance on this we've called that are we is -- -- -- Honestly myself in third person is kind of -- -- I called.
The department revenue in Louisiana and they you know things -- -- and south sometimes and mail mostly called governor general's office whale will see we'll get back here.
I don't think this is its interest thing.
On the top of the radar -- That's what I have -- not -- -- but you know what do you make it great and county to Madoff this happened with -- I followed I've reported on the whole tax implications of the Madoff thing and they didn't it.
-- -- -- time so these poor people extended.
Then they had to wait and go back and they were.
-- -- there were some changes in the IRS for not only Madoff victims but there were changes that they're allowing them to claim.
Losses going back.
Keep remind people about I mean keep in mind that congress has to make this just not wire like that but the key there is that when there is political will and political pressure -- -- -- that it is so the thing to watch if you're one of these people of what is that fourteen million people along just these four states in the coach better than Beckham as if you want these people.
You want to watch he's out of Michigan Sander Levin's office he is chairman of the Ways and Means Committee.
That's who you need to pressure you can pressure merry land lack of pressure senators go after car Karl Sander Levin.
Ways and Means Committee in the house they have authority over taxation and -- -- -- pressure on this -- thanks -- you -- guys had a real good.
Somebody's gotta be taxed.
Miserly BP just yeah yellows as well let's just close up the -- BB but you to your point if you don't get paid on a percent got to get paid on 28%.
I just think -- documents just keep everything until they figured out don't worry they will do the right thing -- worried about claims were worried about.
Well and here's why we've been talking a lot about.
BP and the UK -- tensions in the UK in hell so many people in Great Britain are gonna suffer.
Because BP stock is suffering will we may have people in this country suffering.
And David John joins us right now he's senior research fell in retirement security and financial markets -- -- Heritage Foundation David thanks for joining us.
Thanks for having me right BP at one point times we've got a little bit but one point Diana lost 47% of its value market cap it with -- -- to the tune of about ninety billion dollars.
That's affecting a lot of people in the UK but it's also affect.
A lot of people here in the states isn't it.
It is affecting a fair number of people I mean if we look at the major public pension funds they've lost about one point four billion dollars in value.
Since the BP stocks started to slide.
The biggest thing though is that most pension funds -- actually hold BP's stock because it pays.
A very decent dividends as much as 5% based on the historical value of the stock.
And if that dividend is suspended as it has been at least for one quarter.
That obviously cost them a fair amount of.
And what's interesting that dividend as a result has people phoning it in mutual funds as well so you have mutual funds we'll wait for one case holders all getting hit because this I think.
Many people on BP and they don't even.
-- That's very true however most retirement funds and most mutual funds are extremely diversified.
So for instance if we just look at the major public pension funds in the United States.
They have somewhere in the neighborhood of 2.4 trillion dollars in assets.
The biggest holding.
BP's stock is actually by calpers the California.
They had about 600 million dollars worth at the earlier stock valuation.
But then again they've got 210 billion dollars in assets so it's a very small proportion.
So this is something that hurts and it definitely will affect the in com.
A number of mutual funds and a number of pension funds and the like.
But unlike the UK where BP pays an average of one dollar out of every seven dollars in dividend income.
In the US this is going to be a very tiny percentage it's not even -- to be in the neighborhood of 1% or something along that line so this is really we think about it.
This is a big part of why there's so much political pressure coming from the UK.
About absolutely because it affects so many of their people in such a profound way right.
Absolutely I mean this is a huge problem for.
The UK and of course the new UK government and they have a press over there that's out fairly hyperventilating.
On anything that they possibly can.
And they've been seeing this as an attack on the UK itself.
Of course given the what was that -- soccer team -- are now focusing on something else and but even so that this has been a major political problem.
That they didn't and -- so right because.
50% of all dividends distributed the UK come from BP and shout now all these people that rely on this dividend are not getting it at least for a quarter what does that do.
That doesn't hurt an already ailing economy out there.
It does hurt an already ailing economy and their government has just issued a new budget which will show massive tax increases and massive spending cuts.
And that's going to affect the value the stock market and that's going to affect their pension plans also.
The UK it's a situation where they have.
So far and -- that's changing very rapidly.
A large proportion of their retirees receiving their traditional pensions which means.
That they have to have money coming in or those pensions are gonna becomes even more underfunded -- they are now so this is a major crisis for the UK.
For the US it's really not that big a deal.
It is massive losses say compared to your and my income.
But compared to the bottom assets that these major pension funds have it's really not too much for them -- And of course when it comes down to it BP stock may rebound.
If there is a major takeover bid or something along that line and of course that's.
Possible David thank you so much for the info we appreciate -- as always.
Sure it's fun thanks -- that David John -- reason -- The retirement security at The Heritage Foundation joining us from DC but.
You know it's something -- -- or should do listen while he's gone figure out what funds -- in your mutual you file okay.
And look at the top ten holdings in -- you'd be surprised the overlap you have yeah you know the big funds like -- fidelity vanguard -- reprise their big dividend income funds.
All BP in the top -- the other thing is we all -- Most likely a little bit of BP here in the hasn't -- flowing casing if you -- a little bit of -- you're still hurting yourself by.
Hurting BP which is a decision you might want to make and you might say look I -- -- BP even if I do hurt my own 401K plan.
-- -- -- -- right is that as much in our notes we see that this Ohio.
Retirement plan is -- back.
Maybe they see a buying opportunity and then in New Jersey California and lots invested in these -- about I mean we bought at the wrong time that's -- -- sell their -- Well we're going to be I'd have to -- in -- -- Didn't -- -- is on the is that it's they would move this market higher plane that.
How about Fox's dot com live trees difference is -- I open my big -- and instant karma and now it's -- gone.
-- -- But that's OK we have time we have a whole lot laden to get back look at that chart -- -- -- sliding down the northern slope of the matter once since you mentioned anti -- All right so we're up two points anyway -- move in the market at two points what is an.
It but it was the first -- I got to hit it down and waits waits I'll tell you live -- call and the reason I chose Patriot Coal.
They should at a mine in West Virginia.
And it's eating into profits and think this is very good thing now is because the roof collapse this is the Harris mine.
But it's going to totally into profits next year so bad an -- feel for the people in Virginia because that's got to -- west Virginia Tech.
Because that's got to be affecting jobs at -- last thing they need.
-- picked Walgreens for you also that almost 6%.
Fiscal third quarter earnings fell 11%.
Believe it -- not hurt by the elimination.
Of the health Carol due to health care overhaul costs what is certain citizen earnings come out.
Ever want to -- to -- these big whopping hits to adjust going forward then my health care and for the taxes that they're -- We're gonna start to see it we see -- Walgreens number profit was short of analysts' expectations as listening for ourselves and he's but he's one time hits we want to admit that we talked about.
Steelcase is a furniture -- office furniture maker recorded a big charge again.
Related to the government's Health Care Reform legislation eleven point four million dollar charge.
Margins improved to cost cutting things like that I -- another one that would let me say this is this is gonna be you're gonna hear this every night.
So they should be one time charges but he tell you should there they they may not be you know as they may say this could be -- -- tax liability.
Moving forward and then into quarters they Sammy made a mistake it wasn't enough now -- to add.
Only if there are big legal changes if there are it.
Changes in the rules -- could change again and those don't necessarily have to come true I mean they're taking charges now but it actually benefit earnings in the end because they're -- they may say you know what.
It doesn't cost -- you know fifteen million dollars is really going in costs is non.
The tax -- called an accrual.
And that basically means they have to put the money aside yeah it's like they got some good money -- forbid this is what I know I have to -- that I restaurants know you have that money aside okay.
There's no -- from that time my house anymore got.
Lincare Holdings as a respiratory products company they actually raised to a five from all the Deutsche bank and they said they're stuck -- -- cash quarterly dividend.
Showing little confidence in the company's future.
We'll didn't have these companies have a lot of cash on hand them what they're gonna do -- we talked about it this morning on morning company.
You know -- whoever wasn't as -- this was arguing of these companies have all these these billions of dollars in cash on hand what are they doing with -- -- the hiring people know and the reason -- they're not because -- just mentioned they're scared to -- about.
Health costs are going to be moving forward if they bring on 101000 more people these large companies.
The last thing you want to do is spend 101000 dollars on new hires and then because of tax considerations and additional health care costs.
You let the let those 101000 people go right at the -- and that's really expensive so what are you do well you say the best way to attract investors is that.
Initiate a stock buyback is to pay higher dividend you know.
What's interesting is actually I read a story article and -- -- O magazine.
There's CFO magazine.
And here comes -- dorks -- he's something and I out this long notion of cash on hand as is going to be a thing of the past because.
We cut as much as we can that we hired as much as -- can it not act now you can -- actually tapping into -- has to pay the bills.
So we'll see the cash on hand -- -- Obama you Jefferies.
Posted a fiscal second quarter profit beat beat analysts' expectations.
And their chairman said that -- investment banks and NA and strategic advisory businesses are show picked up.
It has nothing to do with cash by the way -- -- billions cash on hand and activity.
You kill me for this entire segment by the way because of the CFO magazine.
I can't continue as the laughter that iPad and I know is if a -- -- -- -- magazine for everything and everybody out there you know he left -- -- yes this.
If it's been what it I can't imagine this -- -- stating.
Even COO magazine and it would be more excited and CFO the navy chief investment -- maybe you know chief information officer CIO magazine would be absolute worst -- -- boy.
CFO would do is just above that now yeah I am elect the party that won him out he went back over here the group of C -- -- -- music.
Let's see if magazine last night -- -- all all -- you I stop reading magazines once by the way.
Of the sporting news went to glossy that was it for me periodicals and completely done when the sport is like a newspaper.
That was so full -- front to back it before we had the Internet you can just you just.
You wait for that once it got -- just memorize it covered cup because that every stat in every sport and as it is here now with a glossy.
This is like -- that you Sports Illustrated it's a girlie -- what I am based.
I that what -- you are high up -- -- -- my -- league baseball is the -- is one of the few things on this planet that's actually cooler than CFO magazine that -- on the Lake -- crunchers are offering LeBron jeans.
The maximum contract under fronts here of league rules that's 16100 dollars a month.
The brightest -- -- player -- offered by Miami based book as if you remembered them Michael Jordan played for the Birmingham -- that's an independent league team and about Bo Jackson -- gentle boy Jackson played Major League Baseball and NFL though no -- you know.
Back he knows everything.
That was the point of the point of this is that it.
You have an Ohio minor league team in my -- if you do whatever they want.
Offering LeBron James a contract so that he will stay in Ohio now they say look not -- -- -- -- 16100 dollars a month of -- and contract.
But we're gonna let you have a host family in.
Lake in Lake Erie area there so he doesn't the drive all the way from Akron you know where he lives there and -- -- yes.
You live in somebody's house is a host them like an exchange student.
LeBron James living there.
-- -- -- The luxury suite in the stadium.
On June 30 that's cavaliers that's LeBron James day everybody is gonna -- -- -- in the brawn James gets in for free if your name is LeBron.
That's what -- -- -- gains being as LeBron on the table in northern Ohio evening and in the broad.
-- -- -- they can over the next couple months there's certainly going to be now the other thing is.
They're renaming the part LeBron James field it's normally all pro -- stadiums are now LeBron James -- who didn't put it mildly Beasley can do whatever they can't connect to say -- randomized.
Asinine things -- ever you know LeBron James becomes a free agent the next -- what if he stays in place for the Cleveland Cavaliers because of this you know I want I want to live in -- my basement I want I want -- gold moved to Cleveland now so I can be the host family -- for -- -- expect the other compounds in the morning and by the way LeBron James is -- -- -- -- interest in that sixty dollars month he's gonna make sixteen billion dollars -- -- Sandra Smith is here with -- you love that story don't.
Segway is what I come and -- -- are always has seen him.
Just that a lot yet to see you could -- and you know I actually got close I saw Michael Jordan played baseball.
Well it for the Birmingham Barons -- whole Michael Jordan play for the white.
Having never played for the White Sox played spring training you -- -- training for the -- -- and he never never suited up and ask you play for the White Sox definitely that.
But we did actually played one game you have one at -- or something.
On a couple of games well cannot pregnancy and that he was not -- -- bully it's absolutely awful.
If you get a pass when you're one of about sat behind several -- -- awful like like I rise in the CNET -- today.
Basketball now golf -- You know he does right now by the way Michael Jordan that he owns a motorcycle racing team.
That's cool again he did not do no wrong in Chicago I suspect now actually not neither can you Sandra yeah you're big it's got you -- I do very well I I did Jordan.
Who until Quenneville as a coach of the Chicago Blackhawks and Ryan Sanders -- -- -- -- -- -- and -- -- your idea that then India then also what's going on with the.
OK so we are investigating.
The risk trade so to speak so.
Hey good -- it -- -- everybody is that.
You know you look at pension funds today.
For the most part undervalued.
Right and we are more than -- way past the halfway through the year.
And all of sudden anybody and he's pension fund -- -- and they have to look at this and say hey we've got to make up for the somehow you've got to start taking on risk.
Whether your retail investor and institutional investor because of all the uncertainty that debt crisis the unknowns at what they were recovering economy.
So many people have just been -- -- -- I mean.
We've seen a lot of that -- play out in the US dollars US dollars and arguably very very strong and what happened was yesterday we had the announcement.
China's announcement on any one.
Allowing -- value be more flexible obviously that would be good for big multinational companies the stock market rally.
Question is whether or not the effects of that announcement will actually -- and of course everybody Wall Street comes out the note today Credit Agricole said.
The realization that China will probably only -- that you won.
Recover gradually it's gonna have a slow impact we're not gonna see it however.
That's safe trade the dollar trade we saw the dollar selloff we saw the Euro gain.
We -- demand for treasuries weekend which obviously that's the safer play.
That did indeed -- in what we -- we saw a rally in things like oil.
Commodities in general.
-- -- CRB index which is a collection of all the medals the energy's.
I even soft commodities like the greens agricultural commodities had a five week high yesterday on an announcement and is continuing on and today.
So there is an appetite for risk out there.
And hasn't been being put to work.
But perhaps the China announced that was a catalyst for some of those players to step in and -- -- -- these riskier assets.
We heard from the head of fixed income trading over -- Morgan Keegan.
He said that announcement by China yesterday has caused some investors to abandon safe haven trade.
And take up with the lower in class assets as she puts it like equities and corporate bonds.
And over in the credit they say.
-- the stimulus for investor risk appetite at the right time -- We have seen rallies and -- look at oil out for -- fifth six straight trading day yesterday that continues to go however you look at something like gold where that's traditionally safe haven for investors.
Alternative to the USI or what ever.
Gold selling off someone just today we're but but industrial metals like copper where you might see large demand from China is seeing that sort of -- No interest in going about pensions being down we have a quarter and coming up right -- -- June 30 mutual funds to.
Way to hedge funds rate all these people all these big -- at the show some decent numbers we have a potentially inching weekly -- with that -- is.
Put on the restraint like you're saying -- get that final number -- if you're not getting -- returns from fixed income he's got to start looking into the equities markets and that's it.
Who a lot of the nursing I actually just got the phone with a trader sitting over you yes I should would you agree.
That we're seeing that -- come back.
And that folks won't be just going to -- bonds they're gonna start.
Bison that -- this is absolutely unique says.
So many had been waiting -- mistake and now they're having to start to get in and the pension funds of course undervalued that got to do something and make up.
They've got to put something effort for the quarter and -- in his right.
Question don't a lot of these funds buy stocks at quarter end to show.
They're investors that they have these great stocks on the books and then as soon as the quarter turned out they just sell off yet exactly and -- -- the -- window dressings that does indeed happen I've moved Chelsea Sandra thanks.
Including Michael Jordan tell the world why -- Michael Jordan that he played the -- out of Cleveland science.
Then what I see in the ballpark spring training that you find so I was a kid -- sometimes they'll they'll plea -- -- any game.
And at -- yeah site in Chicago and I can tell you this outlook and -- back -- you we'll figure it all out will be back.
They look back foxbusiness.com.
Live -- -- and burns.
To get out.
That if you lift the Jordan thing we're all waiting on his -- I already knew the joy in the event of the year -- outlook clear the air it's very cost.
Will that Michael Jordan was wearing a White Sox uniform plays spring training game with the Chicago White Sox at what is the new Kaminsky -- there.
Because they always play a couple of spring training games at the stadium they come up from Florida or from Arizona put a couple of games.
At the stadium in the city right before the regular season starts -- she did see him play but he was -- White Sox uniform but he was not playing in an actual 160 I.
I mean when you so much better now that I know that you know I know I -- yeah and I'm gonna feel better -- I borrow your greatest cup you see if -- Covered covered through it.
Eric gave them joins us right now founder of happening the environmental movement that -- if you would drink.
-- -- water rather than bottled water could see thanks for having me.
I know we live in the city the best tap water in America that you don't realize that but it is it is -- not knowledge of the best but in blind taste test 75% of the time people choose tap water over bottled water is better tasting now that doesn't happen everywhere though because I don't know it doesn't.
I -- I'm in Atlanta.
-- we took -- from the Chattahoochee River which filthy.
And I and I -- -- -- -- The candidature and Boulder, Colorado when you drink tap water from all the -- like little drinking habits and everything -- if it doesn't where -- you live.
You can access the EPA has a database you can access how clean your drinking water is in more cases than not the EPA's regulations the way that they regulate.
The water is much more stringent than what the FDA does the FDA is who does the bottled water.
Only only if across the state wants and doesn't nobody's regulating bottled -- -- you think -- -- these pristine mountains and waterfalls that you're not you're buying the same stuff.
Let's first talk about the Canadian Intel's got out of bottles that the bottom themselves are not good -- -- but what are general right yeah comes out much faucet you.
I'm Kelly aren't that bad taste it's not at the end of they get hurt me is -- money why how who know there's all sorts.
Things you do wanna avoid and they you put -- -- you that you get water out of -- -- You know what the water quality is in the town you live and you have a filter it's not gonna hurt you want -- it's only going to be great for it and why not put -- thought -- itself filters.
-- but but why not I'll put.
Here's the thing is.
-- -- this country 28.
Billion Bob sweep.
Those -- seventy million barrels of oil to make those bottles that's enough just getting perspective to fuel a million cars for a year.
It to get to give us 22 and a half times.
Of carbon dioxide into the act why don't you think -- -- at first I was eight you know we use what about I have kids.
I was trying for awhile to carry it down around and refill them for them it's a convenience thing note to grab a lot will look.
You know what and in my -- my own stuff -- -- -- -- from any web site that you want.
Why not just get a reason why it's -- is that plastic finally keeping feeling and that's a bad idea by the way you leave that plastic out in the I did not say I don't do that.
I ask that you -- yet -- I -- I.
You get all the -- for maybe.
Book without do you recycle these plastic balls I recycle them.
All -- country.
This country recycles 30% and 7% -- up in the -- -- It cost us an enormous amount of money clean up and that's the ones that don't go into -- dumps to sit in there for a thousand years.
Why did you do this what why did you take on this it's a cause.
Yet it -- I was angry I mean my daughter.
Tied announcing bought my bottles look very -- -- to there's.
She told me what the issues -- -- you know what I'm not asking you stop driving your car to turn your air conditioner down to be a big environmental everything tap water make out one little change not much you can do -- the planet that's debt.
So what your car -- saving the planet we're saving yourself some money it seemed to -- -- a fortune if you put if you buy bottled water.
And drink the recommended daily.
8888 glasses a day you're gonna spend about 15100 dollars a year.
If you like you -- -- from -- and spent about three box and I can save some money into some good for the environment.
It is an absolute utter waste that we consume bottled water in this kind you know hey did you I refill them every night whatever bottles -- I try to use -- -- few times weren't as bad that was meant they had it -- here's the thing is that those bottles.
It -- to date on the bottle.
They're allowed to they're allowed to sit it it in the grocery store for two years -- they have to be rotated not gotten rid of rotate it.
What if it -- if those.
Low water bottles came on a truck that sat out in the sun.
And things -- into your water because the trucks sat in -- -- of the water sat in the dock and nobody's regulating because across state lines no one.
I don't know it doesn't sound very safe and then when you get -- it's happening.
Mean you had you fund your operations and you keep this thing going and you grow and we really want that we we still from day 13 years ago we sold water bottles -- what are our bottles and and the -- happening became very visual -- in Hollywood it just happened.
And people like Cameron Diaz would least the snapshot hang our -- around all the time.
Everybody was talking about bottled water at the time we took off sales of the water bottles off.
To have financed the entire organization so it's that bottom this is one this is one -- you can see anything you want it happening dot com but again.
God if you go to my site don't get educated on Kelly by -- anywhere by whatever you want.
Get an education you get an education I bet you will not be drinking bottled water as much to do.
How much is that before we go how much is what -- -- 995.
And it's happening dot com I got it right here happening that is when I hear.
But that's not well yes it is that's a BP A for -- very well would be PH say that that's actually excellent plastic that's been in the plastic you're drinking out of that I'm coming up -- not magazine plastic bulk up its excellent plastic thank god.
A disabled drinking BT BT classic and -- Pete any free.
Thank you Chad thank you for us thanks and I love highlight the bottle says think global -- -- local -- -- Eric yeah -- -- you're bound to have happening dot com check it out.
We're gonna go through something as simple as drinking water -- yeah.
Very similar to it is very similar something -- Reckless drinking water from this bottle right here to somebody is complexes cloud computing -- -- water I understand cloud computing no idea -- I have a right about that and see if I mean it's I don't know I think Ross is gonna help chief marketing officer and a VP of product management at Mosley are you doing Ross.
I'm doing fine thank you -- are you today very good first the ball just explain to people if you can as quickly as simply as you can.
What really is cloud computing.
Other than how example -- I don't know what you're saying.
Well we're in Seattle -- our heads are always.
No cloud computing refers to.
Accessing services over the Internet so some things that you may have done on your computer before.
You are actually now doing over the Internet and -- you know one of the ones that I would explain to people is -- now a lot of people use email be that from you know.
From Google with their Gmail or Microsoft with their -- now that's a form -- cloud computing.
You're you're having information that you care about stored by -- service provider up on the Internet.
And you're using their email service to access that.
It's about the one that most people use without ever thinking -- it as cloud computing but there are many others.
And -- Mozy doesn't your company doesn't grab me if I'm wrong you.
You're protecting that data that is moving back and forth between these computers if -- if we use the email analogy.
You're you're you're putting that data somewhere you're taking -- at a -- -- you're -- it somewhere right.
Well we're actually taking it off of your PC or your device and -- storing it for you.
Up -- one of our secure data centers.
And you know the reason behind that is that with the explosion of digital information people about all these digital photos of weddings and babies and perhaps yes they have digital documents and -- they want to keep that stuff.
In fact they want to keep it pretty much as long as they -- they want to keep it forever.
But that machine that they're keeping it on its not gonna live forever they're gonna have it for a few years and then need to make the process of transitioning to the next one.
And sometime heaven forbid but it does happen these machines break you know there's actually more hard disk crashes in a year in the US.
Then there are car crashes in the US -- -- year.
What we do is they hate that information is important to you we're gonna provide you an automated way to protect it.
And what we will do is just in the background we will take the information that you specify.
On your computer and we will save it for you up on the Internet in case you ever needed at another.
-- still -- I for instance use Shutterfly.
-- them back up my gas anymore I don't do anything I just -- sole reliance on this site so this site I got to believe.
Would use a product like yours or would use.
Right to back up all their data so that it doesn't disappear into -- who knows where.
Well there and another example of a cloud computing service and one that people use through photographs and there are others like it.
And and some people have a combination they may put some things up on -- shutter fly or service like that.
For sharing with family members.
But a lot of the other stuff they just sucks straight onto their computer and and so what were really doing is trying to back up that that local device you have.
And what's happening is a lot of times people have you know devices that they're taking with them they have their netbook they have their laptop.
They have a number of devices and so they may have data scattered across the number of these devices that we're trying to say okay.
You need to have that information saved in so we'll do that for you.
It Stuart Varney one of our close on another show won't even let his good friends Tracy and I onto his property.
What makes anybody think that he's gonna allow.
You guys into his computer -- -- people have to be concerned about.
Letting somebody into -- -- -- their private lives right.
Well you know privacy is a factor and security -- -- factor and we take both of those very very seriously.
And so what are the important things for people to know with a service like this.
Is that we do to protect their privacy and their security.
There's a couple very tangible ways we do that.
First the data that we take from their computer and we saved.
We actually encrypt that information before it ever leaves the computer.
So as it's coming -- -- it's not in a readable format it's an -- in scripted format so that it is safe from prying eyes.
Secondly we -- -- in a very secure data center this is -- something that's available publicly on the Internet just for anyone to go browser do a Google search on.
This is only available to you.
By having very secure data centers and by encrypting the data we keep that information very private even though it's available for the U.
In case something happens to that device.
Plus can you talk about cost now let's -- I want -- do this how much is gonna cost me every month.
Well that depends up on whether you're a home user a business we have Mozy home product and we have a -- pro product for businesses.
-- Mozy home for -- for your home gets about five dollars a month four dollars and 95 cents a month four of that data that you store on your home PC.
If you're a business then it depends on if it's for here you're -- sitting on your desk or your server in the corner.
Where your machine on your -- it's 395 a month.
Plus fifty cents a gigabyte at -- a gigabyte is a lot.
Yes in part let me quickly can we got ten seconds Mozy dot -- right.
Mozy dot com is the place to go out rat's rock stopped out chief marketing officer -- -- black man -- -- -- Thank you so much -- -- that we get -- Dow up six points.
And we we learned that Michael Jordan did not think that they only knew that.
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