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Live Chris Cotter and Sandra Smith it's my pleasure to be joined by Sanders gotten any Hawaiian.
It very well thank you I finally got that they are you really happy to be here what time you get up and -- I -- this more and then I -- this week so.
That's using what makes her pretty early wake up call ice guy get a pretty early too -- I had to be really but for me I literally.
It's it's like down to the second.
The want to come in the door.
No I I do yes I would make up all right.
I've that I put out of the barrel very -- -- thin -- it is -- like you it's like a dusting for me in it I do myself.
Yes I put my own makeup on and it takes about two minutes I know what it's like for you all in all yeah you'll get the chair yeah curlers on and you're here you're literally sitting there.
Well I think like an hour and a half -- you.
Yeah no I'm not an hour and half a mile an hour for it it I -- -- on the times you're yeah I know little -- and all that stuff off the.
-- the yeah that's an extra hours sleep that's neither here -- there.
Hey wait a minute when I'm 44 points right now -- -- is better than we were now revealed it's still not great -- what's crazy is we had -- -- a couple of economic reports out this morning and jobless claims numbers that everybody was watching before the bell even rang.
And the number was bigger -- economists have been looking for so there's still a lot of signs that.
Companies are hiring right now the jobs markets not improving at least not as quickly as some had hoped or anticipated.
And so that's weighing on stocks for now meanwhile got this hearing going on and Capitol Hill.
BP CEO Tony Hayward.
There but they're -- a recess right now they're they were expected them to restart that hearing again with a Q&A.
At noon so that's something we're.
Content -- -- we -- obviously BP shares all day long and we'll see what happens with that -- gonna join us for the -- what is happening like that right now let's -- -- they're -- you -- left some -- -- they were right -- even -- actually within the -- on the day which is pretty good considering.
We've been down roughly 38 sixty points -- -- the day.
Actually the -- shares are up more than a percent right now I'm hearing goes on so.
Will continue to watch that but we want to bring in Bill Stone chief investment strategist at PNC wealth management we -- can take on all of this is expertise.
-- bill what are you watching the markets right now.
You know I think it's really like a lot of people is -- really watching for signs that.
Whether or not the global economic recovery is going to continue and I think that's the primary driver of what's going on the market I did.
Before we get too far away from I want to mention that I'm wearing no makeup right.
I -- -- hey -- you regret what -- thank you you outlets are -- you don't want and -- may fifth month.
So what -- horrible but let's do this before we move on any further than.
What do you think your BP -- -- -- talking about the whole energy space -- what do you think about BP specifically at this level.
You know it's a really tough place to be you know you're just out there with tons of headline risk.
We don't necessarily -- in and it's hard to get a handle you know and you've heard all this before on ultimate liabilities you know when you're dealing with some other companies you could say.
You know like let's -- -- -- when you dealt with their Vioxx said at least she could get your hands around.
Well they stopped giving it the patients Seattle you know a certain number pace -- the deal with.
This is a -- that just continues to spew oil you can't say how long it'll be it's -- -- hopefully when the relief wells -- -- -- -- I've gone on all that way.
Toss still the odds are that they don't have our -- forced into some sort of bankruptcy etc.
You know they have a lot of cash flow have a lot of liquidity on the balance sheet.
But you know it it's a difficult situation it's tough for us to say -- we'd have any interest in in you know bottom fishing on and at the moment.
-- -- so belliard stance on BP shares if you own and then should you continue to all of them at this point.
You know I think you can I don't think that the the danger is necessarily there I would say.
In our actively managed accounts we don't own any BP at the moment.
You know I think people got to take into account at what cost they have on it again don't seat at the moment we we we put the probability -- that they won't.
Have to do some sort of bankruptcy item but you know and fortunately like I mentioned you've got -- these.
This while car out there and and frankly what you're seeing on TV today.
The politics involved and it may get -- very difficult situation.
Unfortunately a lot of us do on BP shares -- there we once -- -- that we do not know when it comes to our retirement accounts and 401K is X cataract.
Eight million people around the globe have exposure to BP shares set obviously it will continue to watch BP.
In the long term I know that your major concern is filled the debt crisis over in your opinion -- a lot of us get exhausted about talking to this day in day out.
You know its simplest and the market down all -- its debt concerns overseas.
But really is that still the main focus for the equity markets right now.
You know I think it is the overriding focus here today is of course and so were saying that is not necessarily but part of that is because.
Some of that focus is that the the Spanish bond auction went off rather well so.
-- on days when when that it works out you don't need to worry about it.
Today instead as you talked about earlier we got some domestic numbers that claims particularly.
That didn't make anybody feel really good and I think that's what you're seeing today.
What do you make of earnings season coming up might not talk to one person that says that it's going to be disappointing so therefore expectations are going up it's going to be tougher to make those right.
You know I think it's -- yes and I'll I'll I'll agree in the sense that I don't think it's going to be disappointing.
I think expectations are beautiful.
Primarily consensus estimate as the -- are that will hold steady with first quarter.
Which -- and even in.
It's a you know maybe a weakening of global economic growth against still growth -- coming off of the kind of -- we -- in the first quarter should be -- You know maybe you take some some headwinds in four acts.
And foreign exchange but I don't think that's gonna kill it so.
Yeah I mean I don't think that expectations aren't necessarily going -- I think the good news is as opposed the last two quarters.
When you had the markets you know frankly sky rocketing ahead of earnings season you've had as we all know pretty difficult time in the markets.
-- I'm actually looking forward to maybe getting a little you know brighter news because -- actually have real data to work with.
In some corporations talking about what they're seeing in -- and you know real business situations.
You know I know one thing that actually I was sitting on and a new segment that I have on the Fox Business that -- called the tree yesterday.
Is that we're looking at some crucial levels in the major stock market indexes.
In particular the S&P 500 closed above its 200 day moving average the past couple of days.
A lot of folks are looking at that is and saying hey this could possibly be a break -- to the upside from this range that we've been trading and if that's the case in our opinion on that but if that's the case we are breaking out of that range.
What are some sectors that we should be looking at to lead us out Eric says read that break out.
-- really our three favorite sectors right now our technology.
Consumer discretionary and industrials and I think.
The I can't say anymore that it's it's purely that it's the cyclicals -- we don't like all the cyclical sectors.
But I would say that that's part of it is you're you're seeing -- all three of those certainly benefit from the global economic recovery so it kind of goes to our initial thesis that.
The market pretty much what will make it go up or what will help it continue to move higher.
Is that people get their head around the fact that the global economic recovery is not ending.
And these particular sectors had some good.
Leverage to -- Well like what like apparel like any some of these guys -- that got really beaten down under in -- session can you point any.
Ali you know within our -- -- -- -- consumer discretionary couple names we happen to like if you want individual stocks.
We like Limited Brands.
That's one where apparel and -- of the international comes into in the sense that it's actually -- great opportunity for them they have.
Relative to the size of their brands they have a relatively small penetration internationally so there -- some real opportunities there great free cash flow generator.
Another one again able for domestic and international.
Growth opportunity Starbucks.
We think they have phenomenal opportunities overseas also.
And and not just.
Also just getting their business restarted -- were.
I guess I'll -- -- get their core business which we think they've gotten stabilize and turned around in the United States to.
Bill -- thanks for joining us.
Thanks thanks -- Stone out of Philadelphia PNC wealth management.
Chief investment some -- -- some good advice that was very timely advice absolutely -- You -- the player on -- thing did catch my son about.
So we've all got these bank -- so we've opened some of the -- -- for several.
I'll probably eight you have one that's considered a free checking account and -- all over the place you see almost every bank advertising is from chase through.
I don't know Wachovia and checking accounts.
While that may be changing the banks and me and he's free.
Because of the fact that there's new regulations and the banks about overdraft fees a lot of the ability that these banks had to really.
Don't get -- zap you with some of these fees -- have been taken away from the incident make up for that lost revenue.
-- they may be introducing new -- I'm really basic services will remain free checking so Bank of America is one that is possibly gonna have to.
-- -- made that free checking account but to avoid -- -- Customers would have to maintain certain -- and you know sometimes checking accounts you meet them they're just have cut the check at three adults and sometimes they go down incident.
Near zero you know well if that's the case you might -- incurring fees as a result of that Chris -- is just part of what's going on based on the fact that the government stepped and new regulations on these banks it brought down a revenues for the banks which were really counting on some of those overdraft fees -- that are -- for their revenues does -- -- -- -- -- now the retail customer is gonna get hit.
Because of the -- regulations I.
With those who are who are less responsible because those fees.
I've never had to incur any excess bank fees and yes I've been fortunate that I haven't lost my -- well I think that -- I have lost my job couple times.
In my lifetime but I've never had to deal with that because I've always managed.
Very very closely and very responsibly.
Submitted but now.
You're not gonna have free checking -- so now I'm going to have to pay for those who were not able to manage their accounts response -- There's always two sides to every story though in the banks do have to make money and according to this paper.
Banks incur expensive about 250 to 300 dollars a year for each of these free checking accounts is about 200 million of these free check in out that there.
It does cost them money.
It was OK before when they were able you know.
And trying to think about the other word either rob you with these you know overdraft fees -- beat you over the head with -- overdraft stick is that sort of -- we -- that you -- -- like that but you -- and it and it doesn't cost them to maintain these accounts.
Thank you have to make money -- out there in a position where they have to make this decision.
Give you a free -- -- know outlook cooler at that when you sign up for it.
And that thing about it was to -- before it would bring it back when did you get you make money by putting money in -- money market accounts.
You -- the every time you get paid.
I would just take all of that money and put into a money market account -- -- -- -- to -- a -- -- -- -- -- you -- -- online the only -- -- What you're saying is that -- also that at as a result of this change in making -- not free.
May be that way -- cut back on savings in the United States.
It might the certainly did back in the day when you -- more than.
You know one point 1% -- your money market account and -- a -- housing when we come back it's been awful.
Is an absolutely dreadful numbers -- be getting at a housing lately including yesterday and we did talk about that.
A lot as long as -- as well as a lot of this stuff every jets as a list of we'll be back this hill Chris -- Sandra Smith.
Come with us about BP obviously a lot we can -- thought about it here on the show throughout the rest that day on the fox does that work all day long and let's continue that discussion let's talk about.
The brand that is BP Robert Pastor caught joins us now president of founder of brand keys here in studio welcome of the show Robert thanks very much.
What you know I think we think about the brand of BP -- how.
Actually done a pretty good job over the last few years painting themselves as a green energy company you I remember all the discussion in the commercials and whatnot.
You could have a worse thing happened to your brain yet they've had over the last couple.
It's that you could have done this and -- view for me.
That's absolutely true I mean they spent ten years.
Moving from a pretty generic.
Positioning positioning themselves.
As the the green come.
-- let's face it beyond petroleum and it exactly right and it worked.
And the brand positioning these days has become a surrogate -- -- value.
It goes beyond what they just.
Serve up every day in terms of products and services.
And people believed.
We track this kind of thing we've been doing you know for fourteen years now.
They were middle of the pack.
And in 2001 which was a year after the introduce new brand repositioning.
They -- number war.
And they've been number one.
In the sense.
How do you compare BP's response to the -- this bill we're talking about today in the gulf.
To that of -- treatment of Valdez.
Well you know you're talking about two different brands.
The truth is is that BP probably was more responsible in terms of how they reacted which is hard for a lot of it -- to believe right now well I remember the Exxon Valdez disaster but having said that.
The difficulty was is that Exxon didn't position themselves is the global savior who -- the -- the environment.
BP just had much further to fall.
Once once they trip and you're also talking about.
The situation now we -- brands they know people talk about.
How the the consumers control the brands but they've got more information I mean they just.
No this these things immediately.
And admitted that some disaster like this happens it.
Do you shouldn't have some pictures on our screen right now and it's a little hard to imagine that BP at -- that's positioned itself as this clean energy company.
It's hard to imagine these images leaving the minds of consumers.
When they think of BP.
Well that's exactly right -- -- and the difficulty uses.
Besides all the PR disaster over the past sixty days or so.
The fact is is that the decision regarding France's for -- more emotional than it is rational mountain and you just can't battled those kinds.
Of pictures -- oil slicked pelicans.
It just reaches out and has people turn around and hate the company.
No matter what they're trying to do to amuse me situation known brands are worth something tangible there -- that.
A money and NBP that brand has been around for a long time I'm sure it's worth.
Probably billions of dollars.
You can it be salvaged but it is still with that will be worth that at some point time in the future.
Well it is you know in the United States we have a difficult time separating out Brandon company value and the fact is is that issue are.
The brand isn't worth what it was.
Two months ago.
And the difficulty that they are going to face is -- Do -- position.
The company mean they just can't go back and say here we are we made a mistake but we -- still the environment here oil company know what's -- believe.
-- the BP branded a quantifiable.
And you put in an odd dollar value on it.
Billions you talking billions of dollars is -- do you think it's.
-- it it can it be repaired will -- No it won't in the customers consumers have.
Particularly loyal customers.
There's something called the -- six.
Which means that -- six time as.
More willing to give a brand that's in trouble the benefit of the baton.
But that well of forgiveness.
Isn't bottomless and the fact is is that over the years people have been looking at BP.
They had the the oil problem up in Alaska they had the disaster.
Down in Texas.
They have pulled the way.
On a worldwide basis from the development of energy beyond petroleum over the past decade and people have been watching that.
So it made it tougher to turn around and go well will forgive them the entity will exists but it's gonna have to be -- position.
I got ten seconds.
-- your most recent pole because Littleton gave -- index -- second last BP is less the fact that their foreign companies.
Do people look at that and now that's much more a factor now than it was two months ago you -- and personalities gel and having thrown in.
Then the next great Robert thank you so much the very wealthy are -- call president -- brand keys.
Let's average gets it right now he's in DC monitoring what's happening down there -- CEO Tony Hayward was speaking today in front of congress so rich what's going on right now.
Pretty exciting hearing so far today -- had a protestor handcuffed.
We've had charges levied against the administration the administration has responded charges levied against BP.
And lawmakers charging one another with all sorts of things that we even heard one -- say in fact the worst environmental disaster is not is still.
So we're a bit of a break right now BP CEO Tony Hayward -- given his opening statement.
He says that this is a tragic events he says BP -- a strong company.
I think it will work to clean this up so after this break -- they -- because they had to take a series of votes over in the capital which is across the street.
The wrapping that up right now we expect this -- to get started where the real question and answer begins in just a few minutes.
That surprise surprise rich play in politics talking about cigarettes I know that very early on.
Congressman said it was shameful the way the administration coerced to BP if -- will into accepting this so.
Are you telling us that there is a lot of politics being played besides what you -- -- and what you gonna do to fix this thing.
Right and in fact the White House response that I briefly mentioned in the beginning we just started talking I was talking about that congressman Barton.
He was saying that twenty billion dollar fund was a slush fund and -- -- strong armed BP was.
By the administration yesterday it was a shameful display with a White House fired back.
Saying it's shameful congressman Barton has more concern for big corporation and the fishermen and those that have been affected by this disaster itself.
It's this this thing it's a sensitive subject and it's it's wide reaching around Washington.
Then of course the White House is gonna attach itself to the fishermen in the people of the gulf.
No matter what thanks rich thanks threats.
I've got my Richardson on down in DC let's take it down -- near where the people -- struggling the most.
Down in myrtle grove Louisiana Jeff Flock has been there he is there right now.
And Jeff we saw some really really horrific pictures that she was sending us earlier this morning -- -- showing them.
On the -- we get it certainly looks like things are.
It may be are -- getting worse down there in your area.
Here's the thing about it and I do I think you get the right word here the right to adjective there.
-- it comes and it goes it comes in waves.
I mean we went down and Eric Terry at bay which is where those pictures were shot.
And that some.
Some would say that's ground zero right now because they.
The oil has gotten into Derek -- -- it's a huge day between grand isle and Venice.
And to look at the thickness of that oil we got out I was gonna try to find my your -- that I wore -- Nvidia.
And it'll loyal.
Because we backed him obviously it's toxic cleanup site my -- But the thickness and -- the -- it's sort of like.
Looks like you know we have is that your skin is melted off your body kind of it's it's just an incredible.
Picture to see that and you know that the impact of what that does to the the grasses.
I mean it kills those grasses and those grasses are all that's holding the the ground there erosion takes that away and basically.
Pieces of Louisiana having them the maps are gonna need to be re written after the -- on the maps of Louisiana and the IU has a lot of ground just -- system.
It's an -- there that.
You know it.
-- -- if you get in the right.
Direction from the win the right around that Cruz area it's not -- bad thing if you might think is it as a you know refinery might -- here -- some of the things you smell there.
Immediate states it is the tactile.
When you -- battle and you see how thick that is.
You know I've never seen crude oil other than -- and -- gusher somewhere but nothing that looks like this and it's just.
Hey -- and you know everything I live down in Louisiana for several years and I know that this time a year.
It when it all those folks whether you live right there ordering your coming in from other areas Louisiana.
-- hadn't air this summer they've got -- out there.
Whether things ran out of there is the year end.
-- -- know they're not pretty efficient from the water and you what the restaurants look like.
I mean -- our our people out and about or they just not leaving their -- The people the tourist piece of that and as you know grand -- I don't know if you ever -- -- spring -- -- when you're.
-- -- -- -- -- -- -- But.
The that the tourist piece of grand dial is just gone away from the -- camps people aren't coming -- -- -- camps here.
And -- so you know what that's like for those who don't you know -- I don't Sandra does.
If you look out but -- -- see those houses out there but -- camps.
But they're actually houses that are oftentimes up on.
-- -- because obviously the by -- was what the -- -- is and they're very self contained there you know you have your own water that they collect Rainwater.
And those camps out there which is as you say a big part of the tourist.
Piece of this economy.
That has just completely dried up and some of the fishermen to get jobs.
Helping out BP that the oil rig workers.
Are are being hired by BP to help clean up.
So that's OK but the -- pieces is really you know.
You know Jeff I mean it that you hear about 30000 people down there you hear about all the bullets that are going to be.
Out there is giving -- what not you've been there now.
For over a month on and off has it increased the number of people working that we see just this exponential growth in terms of people coming down there whether it's ship's personnel what not to get.
This thing taking care up.
From the start exponential growth yes there are more people I would still say that the the organization of -- I mean some people said you know as much as people criticize the government.
You may need the government and they have a national National Guard army like.
-- Come on this is what it needs because if if I'm able to go out.
And you know stumble around and find oil but it's thick as it is and was this morning and no one's claiming that.
There's a need for more troops.
And I you know they've got a lot of troops but a lot of guys that operate these -- like these these boats here.
BP is I have a lot of these guys who have gotten a serve and that what they do is they string that absorbent boom and they try to -- up oil but.
Doesn't pick up very much what they need is real -- people that would have skippers that can really go ahead suck a lot of this stuff up because it's in its.
And more boots on the ground again -- -- up there with a coffee.
-- across the -- -- -- you know and that the and then it's -- -- into barrel on a boat I mean.
We need hands.
And coordination so that if done properly.
And I haven't seven to have President Obama authorized seventeen hours in National Guard troops did get deployed to the area -- but.
Isn't that we've only seen a small fraction of that number even been deployed to the shores and -- -- Or are hiding war you know.
-- -- -- -- I see what I see -- there are a number of troops but they're not really engaged in the in so much in the cleanup activity they are more.
You know run and make security and I mean here's a big compound -- you see -- there's a bunch of boom over there.
This compound is being you know -- managed by -- National Guard and that sort of thing so they're doing those kind of I mean to me -- more people actually do instead -- -- National Guard but you -- people actually.
Like I was this morning.
Pick up the.
And get -- that a lot of -- -- I heard you say an -- on the Fox Business that we're Jack you said Tony Hayward the BP SC EO he need need to do what you just did.
And you -- to put pressure on the president we think though what in what waiters on and get in there and get appealed for an.
What this isn't what's happening because otherwise you get the feeling that they're looking at this from the chopper a plane are -- read -- on the -- like us.
I know and that's the scary way to go again about it because I've been here five times now and that's the first time I actually waited through it not tell yet.
The perspective that you get on that and you know I don't know that if somebody doesn't want a picture of themselves.
You know scoop it up.
-- -- I mean I don't Tony Tony Hayward doesn't want that -- -- the president doesn't want to picture to meet that would that would say maybe that's the I don't want to impugn the motives.
What to meet that would say hey come here -- it.
I understand it's.
And I think.
Just speaking from my own personal experience I think it's a very different picture that you get from the beach picking up -- tar ball on occasion announcing some occasional you know stuff.
Then wading through thick.
Bunches of oil with dead animals and birds and and fish that's a very different perspective.
Jeff thank you so much for the hardware thanks for staying with this little bit longer today as well Oscars thanks Sandra and I just happy to do if rockets down in a -- a -- in this -- -- I -- what he said.
About the early in the conversation you had with Jeff about in getting Tony.
Down there Tony -- down there.
In a Hazmat suit I said when he first -- -- that TV commercial to PR move about hey we care about this were true -- -- we're gonna make it right.
I'm hearing talk from you wanna see you down there picking up the -- I wanna see you want TV.
You know that -- I got angry I think most Americans would say I don't care about what you're saying I want to see you do get out there and how would we haven't really seen any pictures of him really bought up the sleeves and get his hands thirty I -- that's.
Probably not the best PR decision for him to do that but I think about for Arab political public.
Reasons we we do I see that we do all right I think we have to take a break we do we'll be right back and say let's move in this market from little a little bit -- 49 to vs.
Center we have talked that those of.
Welcome back everybody aimed we're down about fifty points from the Dow right now in -- how difficult it is to move on from the BP subject it's just very very difficult the stock is actually BP's stock is actually trading higher today.
But of course that's after a big move from the company's suspending its dividend.
Also agreeing to abide by what the administration asked them to do set aside twenty billion dollars and an escrow fund.
For the victims of this bill and meanwhile we've got some stocks to watch as we're down fifty points that out Chris -- -- say what stocks and move in this market right now let's start with Winnebago.
080 apparently you know.
Stuart -- always says that the greatest investment is -- is a nice home.
And -- -- I think he meant a nice mobile homes we could take it to any nice neighborhood because Winnebago -- selling a lot more mobile homes anywhere a year ago doubled.
They're shipments of mobile homes from a year ago Winnebago is up ten and a half percent on the day a grand a year ago was a -- decade multi decade low -- through Wednesday.
-- bank what are they -- is a great indication of what's happening in the economy it Muni kids I mean that and to all of sudden say in Winnebago is that -- themselves they said.
People want and people want to start going not again they wanna start traveling again in about motor homes I mean it's or -- Renting vacation homes -- they don't have time shares now they have win a big knows what it's not people trading down out of their houses with the like about Schmidt.
Bomb but Winnebago but he is -- also baby baby boomer play.
And you think about it everybody retiring in and they need to get there when the -- so WGS open you're gonna get about ten F percent you know it felt.
Pop up camper and -- that our five lazy boy is another time and -- -- I'm gonna get one of those soon -- what football all day long LZB.
They're not counting on selling a whole lot of them later on this you know granted lazy boys and all kinds of furniture but.
Fourth quarter profit yesterday nice but really cautious outlook for the upcoming year they got slaughtered yesterday down 70% down another 2%.
Today but still well off their 52 week lows so this -- was was done for when we hit bottoms there and march that got -- behind.
DeLia traders got lazy lazy boy -- just decided not to trade but -- they've been lately but -- last abilities terrible.
Cowboy apple of course why why not it's it's -- and has that.
Another -- but record -- hit an all time record high earlier today it's come back off -- a little bit up one and a half percent apple is so these you do anything wrong.
They're they're trying to control the universe they have a diabolical plan I think rule the world -- you.
Kroger is my next pick.
-- this strange earnings down 14% lower margins and as we know grocery stores and margins are about that -- -- lower if you really -- and publicly beat expectations so stock was up 4% a -- They also yet they had pretty good same store sales figures and they also reiterated their 2010 forecast saying and it's gonna happen -- husband is pretty good report from Kroger.
And then finally BP got to give -- BP report as Sander was saying before it up slightly on the day up yesterday and reversed course yesterday after that twenty billion dollar.
Escrow account was funded because I guess people said.
It takes away some of the uncertainty of -- hole.
To me the biggest cloud of uncertainty hanging over them is the total amount to me we still don't know it's not -- could be forty billion dollars.
Just because they set aside twenty billion dollars is an -- and they wanted to set us.
And I literally remember that I'm not talking about the worth of their assets in all everything that the company has -- cash on the Buxton the last reporting period BP showed only seven.
Billion dollars in cash so.
They don't don't have a lot of cash on hand right now on him.
You going to on BP it was about 56 is not a million shares a little while the was at the start of our show trigger of a hundred million GDP bonds -- by the way are coming back in fashion.
-- what -- would what you'll BP a sponsor the pan out -- going to be huge because this just to ensure their -- a couple -- the right a couple of days ago.
The cost of that went way up so -- doesn't tell you know you could -- -- dig that up if you want otherwise W samba.
How is not there -- the credit defaults swap spreads the insurance -- actually into that to buy insurance on those corporate bonds yet they've been they've got -- that they dropped after the announcement yesterday that.
But huge volume the biggest ever in BP bonds -- that.
-- proceeded joins us right now -- talk about housing it has not been good the head of William -- incorporated -- at the turnaround management company real estate firm.
Billy -- we just a terrible -- I mean we know we look at these pieces of economic data that come out on a weekly basis and manufacturing date has been great jobs data has been bad.
All along win over the last couple months housing data is kind of joined that.
Well it well it hasn't hit nine.
Said we hit 97 levels again so you have to remember that we.
It with a huge recession the overbuilding in housing has gotten greater and greater -- it takes longer and longer -- to recover -- and so.
You know the the over -- and I occurred from out of 2206.
Is gonna probably take this thirteen.
And another thing you got to remember about all this national housing data.
Is that they throw it -- -- and they don't talk about real segments because there are segments that are way overbuilt like.
Nevada are in Florida -- in Phoenix you know and and then there are areas where you could build something today like New York City which hasn't -- new construction starts and you do that the man yup and you have metro area.
Chicago metro -- LA -- -- just real quick with that said is it true then that.
This certain pockets of the country that had been hurt the sand states is even find them right are the ones that are really dragging down all of these numbers -- well you got to remember what happened was the national homebuilders just as soon as the banks were little open the floodgates.
They were building out in the boon booties and I was in a place called -- collect sickle California on the border of Mexico in the middle of nowhere.
I saw -- 101000 housing units built.
I don't think one and a thousand more occupied and this was in the -- -- -- -- five.
And so is gonna -- a long time to absorb the stuff that shouldn't have been built in the first place.
I think we gonna see in the in the good areas and I of course on the New York metro guy so I feel -- -- about this market.
On I think -- gonna see people and we are already starting to stick our toe in the water you know as as any recovery.
You know if that if somebody gets bit by -- -- on the beach in every resident -- -- needs to keep telling everybody watches and then if they didn't get bit by a shark.
If he'd gone a little further so I think.
That there's certainly opportunities out there land is an all time low.
So I'm -- believer that now's a good time actually pick up land.
Get yourself in planning mode if you're starting next year you're delivering in thirteen.
I think he could do okay as long -- in those metro areas.
The vacation areas and the sand states -- you say.
Not sure about.
We don't really have an accurate picture of the housing market -- -- now because we just came off of the expiration of that new homebuyers tax cut.
Which really helped pretty up the picture that I met for the housing market people are starting to talk about -- an uptrend -- -- really think that this is a real picture in fact.
In -- make it -- Make might make me think that it's even more bleak the UN and kids it's -- it's gonna drop off now.
This is like water that you can't see many -- that's why you really want them going very slowly and carefully.
On the this servicers you have to remember -- not for closing anymore.
And if you go to a sheriff's sale -- they were selling 90% of the homes that were listed as sheriff's sale.
If you go to the Bergen county sheriff's office -- a sheriff's office this selling only five or 10%.
The other in 1995%.
Are -- banks and then slowly dribbled out now from -- gambling not the worst idea because.
That -- -- the housing units on the market that once you gonna kill the market.
So the good news is.
That they're not.
Flooding the market the bad news is that make it and make it take longer and like anything they usually big government big companies move -- pendulum too fast and too wide.
So I do think we'll -- see some leveling soon.
We're -- is -- crazy growth but I do think that in the metro areas where people are really working and has immigration coming in population growth.
And just the cycle life because people get married if kids they got to move eventually so I think you'll see some growth.
In absorption happen I don't see pricing growth.
You say you notes there's a new -- involves smarter projects from builders what do you mean by that.
I -- socially responsible building you know what people get about real estate development is you're leaving a physical structure for a long long time on this earth.
And there were too many people building things that -- should have never been built.
And and when I'm -- -- about is that that make mansion that's 5000 feet.
That has a side yard that's about that big and another one right next to it so and that was a product of builders getting greedy by -- and as much housing on the land as they could.
And I just think we have to return -- more socially responsible.
Environment the building where -- not China -- every square foot house in every unit on every piece of.
We -- -- and do you think of the big mansion do you think that now people are gonna go back to what they need and not necessarily bigger is better and unfortunately.
I think that in about five years you will see.
Everybody forget about this -- remember 1990 was identical to where we are now 2000.
Okay not that was going on the world was over okay.
Hey there -- and setters at a government figured out how to make the banks -- able to borrow money from them -- members -- -- bad there isn't as much money the banks can get along for.
That the government isn't the -- Big inning blown out and builders are always gonna take it.
And then what happens is when prices get -- -- more more you try to -- more more housing on it but we will be back exactly the 2006 again.
Actually did you have like a taste boom more like people's tastes just like rapidly gets -- we -- and I prettier owns rather than these.
I just finished -- -- -- building this morning that was by some.
You crazy design I said you know what let's make a break.
Let's make it normal.
I think that people are gonna return.
Two more traditional housing types doing great stuff but he can't and -- -- great coverage on BP keep it up for those people on the go back to Australia -- -- -- thank you know actually do it really proceed ahead of William proceed incorporated.
Real estate firm by the way some great info.
An answer to you for that that BP's five year note do 12013.
-- fell to I yelled at seven point 771%.
But it had gone near 10% would blanket distressed near -- -- yeah.
On that note we're gonna go to break we'll be right back with.
Much much more we'll call my eyes was important -- that's what every other day.
We're talking does this it was on all kinds of ways to invest your money these days as whether it's in BP bonds BP -- lots of other.
Commodities they're different things you can put -- different ways and put your money away for the future.
The mattress if -- -- so inclined to begin it's probably not highly recommended by many people in the financial industry but the mattress sometimes does work.
-- there's another way of doing units -- sports memorabilia Michael Dellucci vice president of operations at sports memorabilia dot com joins us from Miami might -- -- Here -- Democrats it's very tough to to a -- investments these days because it's so much volatility whatever the case may be.
How has the sports memorabilia business been doing -- over the last couple months by a couple years rather.
It's been doing pretty good -- in the last couple years there's there's a lot of sports players that have.
-- really excel hits and it's a great achievements got the World Cup.
Some big time athletes getting paid big time salaries.
These investments will will hold their value over time.
We got guys like rush -- now though in in in the World Cup yet guys like LeBron James and basketball.
There memorabilia is worth a lot had to hold value.
So it's almost like you're saying that sportsmen -- memorabilia.
Is in -- -- There's always demanded doesn't matter how the economy's doing.
Yeah I mean if you if you look back historically and went back to -- you know America was and there world -- sports is kind of what held a lot of the country together baseball.
In they said -- baseball go on and I it is a little bit elastic yet.
Now I am personally.
Michael A Chicago down and I just got -- reading on Chicago Blackhawks.
Daily -- You comparatively this is one of -- most watch it not been most watched Stanley Cup.
On the record I'm wondering what the trend is there in hockey are you also seeing that same sort of pick up in sales of memorabilia for hockey.
For sure absolutely I was actually in Chicago when Blackhawks won it was great and I'm right away as soon as has seen as the Blackhawks won.
There are teams signed by clustered again.
Bob left and right between the week prior to that Tuesday night to.
The week after we're still selling -- -- Blackhawks series that are going -- Around -- thousand dollars plus -- now so.
You're willing to spend on it especially the die hard fans that haven't seen the Blackhawks in the plants along time Patrick Kane -- let's Colin.
Yes -- the thing about that Michael though is -- in the state power I mean if you're buying it as an investment.
I -- -- -- the about the World Cup the lookup comes around every four years and people in this country get all excited about the World Cup and then after a few months it's forget about it.
You know -- Clint Dempsey sign soccer ball.
Somebody might pay a lot more -- what today than anybody would on the market in three months.
Yeah it's not just necessarily need the US resident settled got to pay for -- have a worldwide market.
A lot of our business comes from overseas.
-- -- in the UK so it's not necessarily that the US is losing interest -- it -- -- I mean everybody around the world -- soccer all the time.
So it will hold rugby World Cup -- would having four years.
Let -- between -- -- -- -- it on the US side I would say so much for the international memorabilia market.
How about pricing power I mean you might see the same demand and you might not of who lost much of that however have you had to lower prices to keep people interested.
While a lot of folks just a lot of work and struggling right now.
It's a little bit tougher with memorabilia because you have the asking price of the athlete.
So if the athlete is asking X and I can't really drop your price because you'll be either be losing money.
-- you're not -- to you know make the profits need to stand business especially because in all world you know we're not having.
Can stand out there and -- for autographs and take -- back and salamanders are paying these athletes to sit down and facility actual contractual signings let's.
That's all -- doing what a cool thing is scenery affiliate our sports memorabilia like how a big price tag items that the whole interest thing.
I personally anything game -- we have a lot of Alex Rodriguez game these items so he goes and it's a Grand Slam.
That items coming directly one of our partners and it's on sports memorabilia dot com the next day.
See you find out -- -- -- -- -- items if you don't necessarily want to pay for any regular signed picture or oversized football and item that's using the -- -- -- an -- It helps that the consumers feel a bit more connected to their -- athletes.
Michael in a way you're a betting man because if you have a basketball let's say it's signed by LeBron James.
You're thinking that the value of this ball might be more if he signs with New York.
Then if he signs -- Miami -- -- you're you're you're kind of looking into the future and sit and and projecting aren't you a little bit.
Oh yeah definitely.
Investing in LeBron James aren't they right now we're probably a great idea because chances are he's gonna go to a bigger market.
Just simply because the money's there.
We're hoping a New York -- Chicago and when they do go to those markets demand increases a lot so he goes -- our New York market where you have a time memorabilia buyers.
His supplies -- the start decreasing and then he you know there.
He doesn't sign as much as it is a busy guy it's tough to get these guys to sit down and so the -- they sign unless there is -- price increases.
-- -- one of A-Rod balls -- the game I could contact you and you would sell it for me.
You can contact does that help authenticated.
You have to provide us really detailed information had been done about what I wanna hear about that.
-- -- -- -- -- -- -- -- -- -- -- It's standard catches one -- hay -- home run balls.
She's gonna be on yes -- about two and -- -- -- -- gotta keep the cameras on bear little Billy plenty of video evidence of that and I.
He heard neither is more valuable and there's more value and a sports memorabilia.
Object if I caught it -- if I was at that game I can't personally have been going on not mean not to speak out against your business certain things that you go -- -- and I.
Haven't gone on the website -- a ball that was hit at some game and I was -- in there.
Yeah I mean if you.
I guy or are girl who has memorabilia -- -- -- -- -- game room or whatnot.
And you're busy business person you don't have time to go around and catch balls at baseball -- wanna go on -- sports memorabilia dot com saying.
You know call one of our agents that want this this -- this I -- have a great room.
And they outfitted and and that's there it kind of you know.
Retreat I believe at this Michael this is sort of a teaser for what caught my eye coming up an athlete runs afoul.
All -- the yeah yeah.
Our has something happened and then put it particularly in retirement.
-- can actually help sometimes does that always to the detriment of their memorabilia.
That's a question it depends on the athlete it depends what they've achieved it depends what they've done whether they have.
Whether it it was a moral standard.
Take Tiger Woods for example.
His memorabilia still sells.
You're your stock and get them the market that -- blanking on mother's vying for their son.
Girlfriends vying for their boyfriends.
You do lose that market but diehard golf fans who appreciate.
Tiger's plane will still be buying it still -- that I.
I don't know articles that where that renowned did that will be titled -- US open we shall see how tiger and they think he's the comeback he -- -- That for you Michael Michael who Lindsay VP of operations take -- -- sports memorabilia dot com thanks Michael thanks Michael thanks guys appreciate it.
-- really needs to come back he needs to kick some Phil Mickelson let's he will but not this weekend's vote.
Even though you boy loves that course what caught -- -- All of -- title called my -- -- what we doing a sixteen years ago today that would be June 17 1994.
You really -- -- know I want -- exactly what you are doing and thirteenth 1990 and seventies and seventeenth.
I was the day before my dad's birthday -- making a -- birthday cake that you learn.
That work could not you know what exactly what you're doing exactly where you were on this day in 1994.
Let me let me give you hit this might help the help jog your memory.
White bronco driving down highway instant yes no -- okay so we're just thought this is what Columbine high exactly.
Sixteen years ago today.
June 17 1994 this scene played itself out on the freeways around Los Angeles.
And it changed television forever.
And you know how it is because even though the real world on MTV really introduced us to reality TV this is what made it popular this is what.
Created that unquestionable thirst I couldn't the American public -- -- and all train wreck reality TV you couldn't.
Honestly elect all that then I'll live court yes -- -- -- -- television.
I would be giving away a lot just give me a little bit then it could be hit even middle school six.
I feel like oh my god I ask you we wanted to see you wanted to see -- you're so she's off that there was actually a court TV because you want to see 92 and Al.
You wanted to see you want to watch MTU else's -- coming out.
You can hear the golden girls.
That's gonna wrap really got to go take a break you just ruin the whole thing.
We'll be right back.
-- It's the but his lab and they given you a middle school plan.
Beverly Hills nine -- militants votes I thought.
Being preempted by the OJ Simpson case Don and and -- Jacqueline Adler joins us right now it's Father's Day in three days and that Sunday I got -- two days to -- -- dads who stopped here all right.
That went out there from the red envelope joins -- -- you give you the expert he's gonna help was out last minute ideas that would act.
How are you have allowed Hamas fighters that are dying now and the why we're looking at your site and we love -- few items.
She is I -- -- -- sand was so excited about the bureau holes.
What you do your anger and hate -- I'm just saying he might really come in handy.
What a Jack and I went to the red envelope website the first thing I think it could be -- -- the guys that -- walk around you guys of the you know glass bottle -- in the there on his belt right Nicole.
You know not only if that a conversation piece but it's a functional -- -- -- ground grilling up some very very you can have a beer on your leg right.
I'll reach out for that from my father but I what does -- and -- -- When it -- in the forty ounce modular -- is the twelve ounce.
That doesn't explain idea you know it's not just for men it's deadly for women and -- -- -- in Louisiana we lack F -- -- -- -- -- -- -- -- -- -- -- Jacqueline what makes the web site red envelope such a great place to go for this the type of give TV situation we got last minute you got your dad is sometimes very hard to -- -- I absolutely love -- dot com really is the online shopping destination.
For unique and customizable against and it's.
Not too late to charter -- time for Father's Day if you got a red M but dot com and place -- order by Friday at 9 PM.
Eastern standard time you can go get your item delivered in time for Father's Day -- -- other I know last minute shoppers other -- -- -- -- Ulster.
I'll move like ours and popular idea that I'm seeing something about a golf ball -- really.
I love the golf ball cleaner this the perfect gift to -- the dad who love golf or really any avid golfer whether it's your father and not.
Graham -- or even your Abbas.
What is there really unique item and that cleans your golf -- like you're on the green and not near cleaning station and let this get because -- how dad.
-- I was really are supporting his passion that he is 2995.
So great value you know and I can't help improve his game which is priceless to any avid golfer.
It's a great points and you would never need that because she never gets a golf ball -- you're dirty it's always in the short grass from -- and I bank credit every step.
I also saw that you have they'll cuff links are usually pretty easy to get your dad but you've got specific type of coupling that it makes will be unique -- -- -- -- -- About that many is -- -- -- stamp cuff links are really the perfect yet to get dad.
From the entire -- -- say thank you for being hard superhero.
US postage stamps.
That are -- look comic book cover art.
So what -- About this item is you can choose -- superhero personality really resonates -- that that whether it.
Baton and and had determined based in -- That's Harmon's Superman are the responsibility of Spider-Man there's really if superhero and everything of that -- how much.
He can't start -- 8995.
And they may -- cold.
-- -- -- -- -- -- -- -- -- You know what the my dad and as a superhero.
My dad I guess you have to be dot -- from back to the future that would be my dad as a scenario as he did at the inventing stuff all the time -- -- that custom -- I love that I have this thing or every there is for sure in my wedding.
-- -- -- Our dads love music and some of our fathers are from seventies some of them are from the sixties but -- always find something music related.
Your -- he got some a perfect idea don't you.
I've -- is either either recycled LP coasters on their side bar and get to get.
It comes to set at six recycled out he is and not one set of fixes the same as another south.
-- can get anyone brown Bruce Springsteen -- say Barry Manilow.
Jacqueline that is great stuff Jacqueline Adler from red ball below check it -- Thank you Jacqueline.
Thanks seven thanks much for having me Father's Day not as saying give up -- up yes.
Yeah I don't have this.
My dad's birthday is tomorrow -- from the eighteen you get double with a double -- don't you know can you give one get they did -- is.
Have never really figured I think it it different every year do you think it's bad.
For that we don't give our parents tips on.
Muslim cause they would be in cars and call -- taught him if we're living in the same city hasn't my other roses as -- -- -- -- -- to dinner and whatnot but.
That's nice tool we have I have seven nieces and nephews and as of next week about an eight.
Is that keeping track of their birthdays and -- from presence for although that is just too much dad and I literally this I'm not I would have -- full time job.
Of buying presents.
Because buying all my Brothers and sisters and parents chances and that's just something nice that works -- -- got -- we do have to go.
-- -- you did something nice for me today I behind -- thank you had done it we'll see him.
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