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Hey welcome to fox does that come actor's -- -- -- We got a wild day on the Dow today down -- 258 points right now.
Pretty much when the market open it just has been descending ever since and we have I don't even know where to begin with we got started with Europe.
Europe Greece rally in the streets European Union officially saying that there unofficially supporting the ban on short sales so that didn't help -- -- markets open we have.
Jobless claims up again which I think -- really crappy news new -- that on to the housing numbers we got yesterday then of course we had that.
Mortgage rates are at all time lows but -- -- mean Jack is nobody's out buying -- house because they have no interest in doing so when they can just foreclose on the one -- so.
We now welcome and not minutes.
Word test in -- -- -- we could potentially closed down 10% which would be officially.
In correction mode or being the big cracks you know I don't feel so -- -- the numbers the jobs -- I -- Because of just so sick and tired of every Thursday morning saying hey this is going to be the day when we get closer look at -- hundred and you start to get that net positive and we just don't do -- we -- around 450 in this time around for 71.
It was even -- so I hated that number.
It's getting to be really annoying to me the other numbers were were bad and -- obviously but to meet.
I'm hearing more and more today he from more people -- I've heard a long time over a year.
-- building materials are really hit hard today because of all this housing last couple days.
So we use the hundred -- reduction in price the bill that bunker you've been thinking about building in your backyard and filled with oil and gold and canned goods and get it I'm hearing that more today than I've heard it a long time -- is what I mean by that.
I mean that -- there's so much that the sky is falling its all over we're done for our.
And you're more of that today than I've ever before in your -- is what -- -- I'm not flying by the bunker about all I'm saying don't -- -- they know that there are people that are and that's making me think the opposite that's making me think.
It's we're gonna get over this this too shall pass it's -- bad -- Watson a some people out there's -- people that have been skeptical we're gonna wash him out here and go down 1015%.
Whatever the case may be.
And then we're gonna pick up again.
Because we are covering but we're recovering slower than we had than some people had hoped.
Then some people that were very bullish in this market that we're buying of stocks over the last couple months after we had this big yearlong run.
They had hope that it was better -- green shoots it turned into trees now mind.
You know maybe do a little bit ahead of itself.
And I think we've been talking about the disconnect between lost in the history and -- you can see.
It's not so disconnected.
Because main street isn't that I was lineup -- -- to -- is that this rate the so called consumer and I know -- pointed out earlier that there are little signs of the consumers out there buying.
Something other than toilet paper I'm not 100% and the bipartisan you know that they've been buying cars and -- great deals right.
I mean it and having like that have -- c.'s good numbers housing numbers number contradicts though right you talk -- the materials building materials down.
Yeah all that stuff -- go Home Depot and -- saying all's well.
Well I know anything housing related other than home the wall of the -- said 2010 is going to be Chelsea FC -- -- outlook I would say as far as housing goes the FOMC income meeting minutes for the worst when you hear that -- they even say.
They've been solely all the economies moving along slowly but surely moon and then when they even say we -- stalled housing markets me that was pretty dead and done again.
Joins us once again he -- -- time it's on executive VP and G executive.
It -- executive of the investment for PNC wealth management joins us from Philly age and how -- -- -- -- -- -- -- -- Good what what do you make of today you know every just washing out a lot of the people that we're nervous here over the last few days -- -- doing that over a couple of week period until we can finally get that 10% 50% whatever that correction might be yours is something bigger and better.
I think it's within that range listening to your comments certainly today the market has a decidedly sour note to Lleyton are -- -- all the news in the -- that's out there whether it's the global growth story whether its sovereign debt.
Led by Greece.
Whether it's the news of the oil spill on the golf so there's certainly enough out there to give investors concerned.
But your point there's still a lot of positives that there and I think it really -- as to -- you think we are in a sustainable recovery.
And if that's stories in case in place then.
A market reaction correction after the move up that we had is not that not usual.
Still but I -- the big question then is are is this market in correction mode right now do you believe that it's necessary part of the recovery.
Without a doubt so we're not gonna have a bull market that does nothing but a lot all the time so we had we were up almost 70%.
From the lows -- correcting a corrective stage and that is is a healthy part -- always difficult while you're going through it.
But we don't think that that global growth story has -- -- rail here.
You saw corporate earnings off the first quarter we continued to think that will be a positive.
Analysts are raised their estimates maybe a little bit too high.
-- weren't gonna continue to see positive news out of this economy not all of it will be a bit a bit lumpy as we go through that recovery.
But -- a corrected stage is almost the box -- that not not a bad box to check off here to get a correction.
And el Al new leadership to take place.
To visit a hard to price equities -- price stock's price the S&P 500 for example because we have so much uncertainty with the global.
Economies so intertwined now more so than ever does this make it more difficult with all that -- -- be able to figure out how much to stop should cost.
Well if you look at the earnings picture and I think that is improving you saw -- money.
In an excess of 70% this -- companies in the S&P that reported in the first quarter exceeded their estimates.
Not only on earnings but also on revenues and that's the piece the key that we were looking for and that it wasn't just cost cutting delivering those those that -- earnings.
If you look at that then you have a little better chance of forecasting.
What the future will be based upon that revenue growth and earnings growth.
So it's always the valuation on the market earnings in the price is always a difficult timing tool.
But I do think you're starting to build some value here and as this -- continues and hopefully we're at the at tail end of it.
Sellers become exhausted here and you start to build some valuation.
But are there things that make you nervous about this market going forward is is you're one of them.
Is financial regulation another one or is this is part of it and we're -- you know we're gonna move forward regardless.
I think what makes me nervous is the uncertainty that's out there.
Financial regulation probably -- the -- -- so until some of that is we adopted a looks like they'll be resolved here shortly.
-- that you can start to make some some plans around that.
And there is a great deal of uncertainty I think the actions that the it European banks.
Union took that last week.
Prevents the contagion.
In your but it doesn't solve the growth story that will let persist for some period of time.
So I do think they'd -- we did it reduce some of the risk of -- the sovereign debt issue but we still have an issue is having easier and -- Start to I'm promote growth again which will be probably some time off.
Gym yesterday the FOMC minutes they predicted unemployment to be between nine point one -- nine point 5% by year end 2010.
The Tracy mentioned -- the separation of main street and Wall Street.
-- -- if you're -- it sounds like you believe that's gonna continue because of where nine and a half percent by December 2010 that's really bad news.
What we do believe that we're in a sustainable recovery but it's -- recovery that's probably -- half the rate that we would normally expect coming out of the deterioration in the recession that we act.
But the economy is clearly beginning to -- jobs again you'll be at a rate that's less than what that we've seen in the past coming out of recession of the of this that.
And what will be counter intuitive as we're gonna add jobs.
But be in unemployment rate will stay stubbornly high as those discouraged workers come into the workforce.
So you're gonna start to see.
Job growth in the in the two to 300000.
Jobs per month.
But the unemployment rate will stay stubbornly high and that long seen.
And to make sense to look to many people.
Could kind of what we rent one of the -- you like where the materials and industrials are you still happy there.
What if you do believe that -- any any in a recovery than those sectors that are exposed to that recovery materials.
Industrials and technology though is that we'll get the added benefit of capital spending.
What will -- will benefit as we come out of this that recession into recovery.
Jim a lot of companies that did business in Europe or do business in Europe.
-- perform very well over the last year so are you cutting back on looking at those live tonight he's the well McDonald's caterpillar names like that.
But those -- the certainly exposed to global growth that may have some you know -- strong earnings growth going forward but we've still look at that I global recovery.
And I think what you're also seeing here is out of this this this rebound.
I have performed I think we're gonna start to see the higher quality companies do better here -- -- to see that change in leadership of the last couple weeks.
Tim thanks so much for being with us today.
You bet my pleasure Jim -- get executive vice president and managing executive of investments at PNC wealth management -- Philly.
Joins us actually did I just sent to -- out -- you know what that's going out this market.
We left us here.
He about global economy and razor thin ice of massive debt run up by leading countries in -- spending no means to pay.
True it's true.
Doesn't mean the stock market won't go up I think does that signal last year because it was going up -- now.
I don't it's coming -- terrorists well yeah that's what that's the -- -- -- -- -- pricing now for where we should be you know yesterday who company yes it's it's gonna.
That curve won't look like -- V it's going to be more like gay.
A lot of -- -- that symbol of course and terrible math.
But it's going to be basically flat out are you re pricing -- it's going to be flat out from here 101200.
On the Dow we you know taken a -- for the next -- up.
The question and nobody knows the -- we did.
Much -- they love you and I do I would not be sitting here next to you.
It's what -- I appreciate your instinct that means -- may actually.
You antibody that you can't see experience all the I will Brian Sullivan's island Eric Schmidt -- -- we'll be right back.
We did that -- down.
Birmingham Alabama I really am not the one that should be saying Birmingham Alabama probably should be you mcdonalds you found -- little -- outcomes with us now to talk about what's.
Said I John -- something about eliminating these interchange fees.
Good thing bad thing give us -- scoop on what's going on.
Well it depends on who you are whether it's going to be good -- bad in different you know.
They are he's in that case speech from the credit car company's the credit card companies usually figure out a way to get whatever we do walk so they're not taking it from.
Store you're probably -- became premier consumer stuff.
I I I guess it just depends on Welker.
-- you are weaker outlook.
John what exactly are these interchange fees are they're multiple different tranches of fees that are charged because.
You could charge somebody less than a penny a fee every time and and still make a bundle on -- with all these transactions to what what exactly -- to interchangeable feet well.
Interchange fee is basically just be -- be.
Retailer pays back to the two credit card company for the right to take those cars it's usually somewhere between one Q percent.
And it's really just another way that a credit card company makes money would.
OK so -- -- Yeah hey hey that's well if -- reviews this.
They've done it before in Australia what happened in Australia.
Was -- when the unity he was reduced its turnaround that started talking at our annual fees to the consumer originally -- that we were programs.
They started -- the -- revolves around reducing that 0% loans and stuff like that they were given -- -- One another the credit card companies figure out a way to get the money that they want you reduce it warm spot they're gonna get another -- John senator Dick Durbin has proposed this amendment that's an ability if you do you feel that.
Our senators are aware of the fact that book will what you're doing this a credit card companies or other companies eventually those costs are passed on -- the consumer and you really.
And in many cases -- net net zero sum game for consumers.
Yes that's the way I feel about it I think it's a lot of grandstanding.
You know it it makes them -- more appears he's great.
Knights in shining armor you know it's really a zero sum game if they don't get it from one place they're gonna go get another.
This is not out -- out of the ordinary though right this -- happen before there's been legislation passed before and hasn't worked in other places.
Well we're -- -- that this case study -- Australia I say they try to do in Australia.
And saying well the credit card companies that hey we we've lost a billion dollars in the first year that you guys enacted this.
And now we're gonna do things to try to get that billion dollars back.
Or losing -- things that they didn't start don't make it through work programs they raise the annual fees.
They eliminated 0% intro loans that people -- students do.
And and -- pick -- a billion dollars.
You'll want to John I was noticing that a partisan -- was that it gives stores the right I guess.
To give discounts to customers are paying with cash in with that with a debit cards and what checks I didn't realize that that there was a rule in place -- -- law and place preventing.
-- tell us from doing that.
Yes they do the credit card companies -- constant -- you can't.
Do that -- -- if you're gonna accept our car and and pays interchange fees can't kick back some evidence to the consumer.
Critic of blowing then tell us what low cards dot com and does what -- -- -- site.
-- guards on contract every credit card.
In the United States and there's the race in one place interest rates in one place so people can shop among all the cars and they'll have to guess.
But make -- something in the mail whether or not that's the best interest rate they get they go to our site.
Look at all 15100 credit cards in the nation and decide which women will then every help I.
Think there should be something that I -- -- my children off the credit card mailing list because my that's why I'm mark credit card -- still.
Well thanks John.
McDonald who found a local -- dot com check it out -- dogs get credit card offers one points and they did they did.
Pretty ridiculous let's have a system right now Brian Sullivan is there world traveler -- -- domestically right now probably a lot easier dealing with our travel agency.
Until the flying from New York this -- -- go out there for the Google developers conference and -- is speaking did Eric Schmidt Google's CEO Brian.
But there are a lot of other developers and a lot of things going on there aren't there.
Well first of what day in time is.
I know the of so I think I saw they come on Europeans -- -- it's actually the numbers here guys -- Google developers conference really staggering.
Upstairs there's not a lot of people here right now because they're all upstairs -- keynote is going lawyers -- is going to be speaking or is speaking as we speak.
Upstairs and really it is been a lot of pot shots.
At apple -- they've been bashing the iPhone really for the lack of flash Adobe Flash the lack multiple applications running at the same time -- an iPhone you know what I'm talking about but.
The numbers here are our bigger than I thought they would be guys in fact.
Just a few minutes ago I ran down the head of android which is Google's.
Mobile platforms -- that there are 100000.
Android phones activated every day.
100000 android phones activated every day.
Applications built by 180000.
Developers have a good chunk of those developers by the way.
All right here as you noted thanks to the -- plug later on today right around about 1045.
This time 1:45 eastern time we're going to be sitting down with the CEO of -- Eric -- gonna ask you about -- we're gonna ask you about the global markets have been asking about.
Privacy concerns about a lot of that.
The guys I want to show you I want to show you some cool stuff because a lot of listen while we do -- these Smartphones -- and if your kids our message here only -- play games mostly right and but there's a lot of product -- a lot of productivity stuff here as well things that the business men and women.
Would like to use I think it's one of the cooler products company called date of this thank you very much -- out I'd be.
And this is.
Using -- you know you open up Microsoft Word and excel -- on your little phone and it's a pain doesn't look good -- format right you're on the road you gotta bust out your laptop at the airport lounge like George Clooney.
So show us this cool product and how we can be more productive work smarter using a mobile phone.
-- to overdo it in that would make -- chronicled documents to go and lets you view and edit Microsoft Word excel and PowerPoint files on here.
-- -- That's one of the more popular applications in the market as you mentioned the -- an 80000 developers and I applications currently in the top ten paid apps so we're very excited about that.
So we're done today they're showing our latest version -- adding new features.
This themselves for.
Get excel spreadsheet that's a bigger screen guys obviously is running off -- -- mobile phone and it -- of the charts can also chart graph and you kind of you know we like pretty pictures and colors don't deserve to league -- -- actually update your -- on the go sit here editing expense report for example.
You can update the values and regulators totals and then even see the charts right on the phone CC for us no you -- meals and entertainment for Tracy Chris back in Europe would be higher and be the highest.
That's -- travel Patrick.
Travel for me is off the chart right now so I you know meals and it is I'm not I'm not eating habits and so Tracy so tracing Chris here's a -- that's cool to Tracy went -- your kids get their credit cards they open up that credit card in your name.
You can apply that you -- -- and they're spending on your Google book.
And then -- -- you can actually think that got him back to your computer and maintain a 100% of the format.
Does less work we take a little bit we like that.
78 a lot about what I thought the office to your android.
-- paid apps very cool -- actress can't -- the credit iPhone as well.
Everybody knew the throw the phone at the credit card -- the -- sharpen it up and cut the credit card and athletic.
But -- not just about fun and games yeah there are a lot of very cool productivity enhancement apps.
And -- the thing I like about being out here guys is I know it's tough day in the market right markets are down -- a lot of fear out there.
There's a lot of optimism here you know all these guys that is needed is always companies around us.
They are building applications and we're gonna run tomorrow there's a lot of optimism that companies are hiring -- quick quickly guys I know I'm I'm blather on about washing it.
One critical thing a pickle ball technologies.
Look at -- put on -- board.
Awesome -- where the jobs mean a lot of them are here.
Outstanding Bryant thanks man that's great stuff look at -- 145.
Hour time with the eighty on the fox is that what you got.
Eric Schmidt the CEO of Google it and put it that right.
And I that's going to be good seven by the way I guide had that is cool that there's a lot of optimism as people hiring obviously look at the future.
The one thing -- you think back to the the dotcom bubble bursting it was because there's a web site for everything everybody everybody's website is going to be huge.
What about that for cats because this guy mentioning is that is one of the top ten and if you're not in the top ten you're one of the other yields.
Apps that isn't in the top ten.
How do you get people to to know about -- wrap the -- into it and whatnot don't get a feeling that if you have an iPhone and yet one of these who follows manages so many thousands of apps out there you get overwhelmed by it.
I don't have a phone with that allows me to get -- so I yeah I.
If you trust me on the Obama just gonna look at but I do think that to your point about how the -- worked it seemed to work for a while -- seem to be enough to sustain it.
And I think great Brian is a great point there's something about Silicon Valley where optimism is always there and in the market that remember last year we -- out there at the market fell.
We were out there again for a conference yet they still have that optimism going so god -- and it's the incubator.
Incubators of our country and then.
Question -- Speaking of incubators.
That he slams and fast food restaurants are kind of like incubators they incubator my usually Mike Berger Mike -- -- -- -- a couple hours until I'm ready you get.
All -- notice something today that just you know.
A lit up my world.
With all the bad news mortgages jobs.
Everything this morning was just in a nightmare and then on the sudden lo and behold I sat -- Yes other than that.
Bomb -- I'm -- that Yum! Brands which is of course the parent for KFC.
Has decided that the double down.
Should not be for a limited time only that is going to be -- permanent fixture on the KFC menu thank god.
Much -- -- to sell that it is.
-- what is that.
What is that that is -- chicken sandwich without upon.
Essentially that the two pieces of chicken pot makes the bond it's fried chicken all the I'm right its fried chicken hash brown -- it doesn't taste like -- rounds you got that season Mac and you got -- on top of it.
That makes the one held a lunch sandwich right there KFC and they're gonna so they're ten millions.
Double down it was just the other day it seems that they were announcing this ten million of them already later this month.
And added that they're gonna keep -- -- And I.
It's something that's called the army club they're not the double down -- -- what you're doing -- so clearly understand something else -- there's a website called.
He -- version of the double down.
And put it head to head as far as health lies though there's the match.
The real double down 11190 calories that's according to city -- with by the way doesn't believe the official count that -- KFC puts out there I don't let either.
My accident and -- 86 grams of fat.
I don't know what that is saturated fat the V again which includes two tablespoons of media days with -- gets mayonnaise Smart bacon.
And follow your heart Monterey Jack none of which is real -- or real bacon or real mayonnaise comes at 785 calories it's still 69 grams of fat.
-- much of that 69 lives is not saturated fat that's got to be you know the -- that's better for you.
You have saturated fat without animal fat you just couldn't do.
You're going down I would go down the real stuff then this it's like yeah 400 calorie -- doubt the real stuff I actually visited KFC -- -- a few moments ago that they were renovating in New York for research purposes -- -- for research purposes.
And come they were so.
Upset that they couldn't serve me a you know and I wanted to -- out because they were they're renovating distort it but.
Both they I didn't talent level was -- -- doesn't Wear it with a famous TV star Tracy Byrnes hear a little while.
I just said I wanna get one of those and they were fifth they'll be so bad about it we're going a mile and it's will be doled out the entire prison.
-- the question but if you're renovating and you can't make assailants how is your store open.
But -- it's open because they said look we're going to be ready in and a half hour but I wasn't I wasn't I could wait a half I had to be on the act so there's a couple of other things.
We have a Twitter account and by the way not mark Lugo saying I think foods like -- should be -- It's a disgrace what fast food is not only due to the US but worldwide.
The guys that did not make and you -- it in Detroit you can go in and either you don't have to eat you going to fast food places -- -- salads I fruit cups.
Think it's a disgrace I think it's nasty but it's not it's a choice who we all should have a choice and if -- choose not to go to fast food restaurants.
-- put them out of business it's much like me salivating at dairy queen when I built my blizzard.
And then -- iphones -- I master my children I have mastered the art a blizzard making bought phenomenal.
Let me just say this real quick real quick about that the Twitter comment I have made that made the point that in a lot of poor neighborhoods in this country it's balled out fast food restaurant as they have have options.
United in what we need to do -- from the start trying to make healthier food.
Less expensive in general and I think that would go a long way that's it's I'm done Toby Smith is gonna join us on the other side.
-- -- we were loud voices.
We -- so it's a good day for Kobe goes down seventy -- 270 points -- vice.
What about foxbusiness.com live Cotter and -- -- a market that's down 275.
Points in Tracy's gonna tell us some of the -- is obviously there are a lot of them.
On a day like today.
Well there's a lot down so I tried to find some.
The big shout out to the financial stocks -- as the big -- Bank of America's the one -- -- but there's all this uncertainty in the US senate again passes financial regulation of warmth.
All we keep hearing from all the opponents we -- it is that uncertainties biggest part of probably have.
Weighing on the bank stocks they're all down.
Citigroup Goldman Sachs of course Goldman Sachs is down what 137.
-- 130 and then how.
Morgan Stanley JPMorgan all down Bank of America -- being one of the bigger us bank stocks down but -- Group up.
Actually all the educational for profit educational stocks are up today FBR capital markets gave them a little plus they said that.
Game full employment seems to be well.
Not so much in the cards anymore people are gonna continue to go back to school.
This is a good way to do it so a follow up to ride we saw them up from the -- -- day basically the day started with these stocks up.
And it was word from FBI wants the jobless numbers came out -- -- -- -- those of you seen any graduation rates -- -- Phoenix and some of those are really really low.
Graduation rates it's somewhat makes sense to me because he's he sang happy -- apparently taken a class elect -- -- you don't want it.
-- -- Networks that fiscal third quarter loss narrowed believe it or not -- a telecommunications equipment maker.
But they did see a large number of new customers and -- -- higher margins and that's all good and Advance Auto Parts again people working on their yeah -- right fiscal first quarter profit grew 17% on higher same store sales.
This to me totally they got -- dichotomy -- what that auto numbers that we've been here that there is -- sixteen million cars between twelve.
I know people who make and the ones I have left a lot.
I hear you but at the same time that's the that's more millions of cars on the road that will event elements that he has some I don't know -- if you don't think the dealer you you know -- they decided to oil change at those places and -- Play that well -- -- up almost 8% actually which is a big move today and we -- president -- air China -- -- I love this name because to me it's like.
A religious tech company but it's not -- tech gave wireless communication technology obviously Chinese company up what 5%.
Posted first quarter results it's a research and development phone -- cell phones solutions out in China.
And pretty much the only knock and a really nice stated that Tobin Smith joined is -- And always good to have you on so we'll do it enough he's the founder and chief investment strategist for change waves joins us -- -- Why does why don't come back in the woods yeah.
-- I know.
You can't say that I.
Well -- yeah.
It was our notes any and I know I don't know is still there you know is at Indy and -- -- -- is that the new company is he knows weaves or take a lot of.
A lot of stuff -- we did it change wave and -- -- -- -- -- get my -- next that yeah.
Think that is an epic.
I tell the Catholic holiday market when that we're down 280 points on the Dow.
Well you know.
If -- CDs -- to say -- you have to look inside a little bit -- if this was really up up flight up here.
Do we would have gold you know -- all about the currency will go down all right so this is -- liquidity move.
This is this is for the people who were really long and it was a short term investors now that we're long what leverage.
I had that -- -- you know are getting forced selling and that's what you -- and that's what you see -- up that flight 330 you know these times are very important.
10 o'clock in the morning that's when the first margins selling happens 230 another time 330 the last time and so on -- -- liquidation days.
This is about.
You know if the GM -- trade get me to -- out.
I'd get me out of step by that I have winners and -- -- the other thing would make sense that you would see the NASDAQ down more than Dow Jones won't notice what it is.
That people are selling the winners to get the cash to make sure -- market accounts are right.
Will test you know that -- for a low that 1066 bottom of the -- during our little flash crash.
I'm at at and -- at I would just encourage you to look at the 210 day moving average.
The media what are -- -- out there could bring that up on the S&P 500 that is really the line in the sand guys for eight a bull market.
We're having a real first correction here Europe is obviously -- catalyst to this.
But you know -- -- bull market you wanna have some corrections is it gives you a chance.
To buy the really good quality stuff on -- but -- a well the 200 day moving average -- in the 210.
It took that day is actually the best because essentially everybody looks at the 200 day average.
-- related to 210 if you go back over the last 5060 years.
That's sort of a line in the sand and typically that correction you'll -- -- a little bit below -- And and and that in a bit at a -- market it will you know really not snap right back so that's what's what I'm looking the most are you buying anything right now you still waiting until we get to some of these technical numbers that you look at that.
Well I you know I think fifth don't principally we sold a bunch of apple which we'd like but at 270 dollars it was about 90% of our target -- -- -- I'd like to redeploy that money I guess that's the correct way to say it -- I'd like to redeploy and apple you know below 225.
Where you know 231 -- changed today so we're getting close.
That the bottom -- -- not take a look at another thing Chris.
Oil you know if you go to Cushing Oklahoma today there's no place to start any -- -- oil they're completely filled up.
Now the last night we were at that stage where essentially there was no no more room to -- store oil.
It was about 62 dollar oil well I would say sort of sixty to -- oil.
-- -- moving average those all things that sort of finding their feet right here.
-- rights until what do you -- at then you know tech is selling off everything looks like Armageddon might have a there's got to be some bright spots out there.
Ali a look at that there's a lot of secular growth -- other stuff that's growing.
Not tied to the economy.
You know one of the big transformations.
Next big things we -- -- to -- He is -- This tax -- into the mobile Internet now.
The mobile Internet you know I think you all you know -- follow -- pretty close to you guys report -- a -- is growing five times faster than the desktop Internet.
-- -- That's all gonna be driven on wireless.
Brought down -- wireless mobile broadband wireless fixed -- bad.
There's a small smaller cap company 150 million dollar market company we -- China tells CH TL.
This is a company that's building 29 city network in China the largest 29 cities are currently building twelve cities now.
-- -- Wireless broadband for eight to ten dollars a month.
In China that the other competitors in the space is only three other ones -- Really can't even offer that would are offering is his DSL you know -- -- 128 K 256 K.
Are these guys are development stage they're there they're -- about eight to nine million dollars in revenue month right now it will be yet according to our numbers two billion in revenues.
In the next by 2011.
That -- of growth is gonna happen whether the Euro goes up down or those who want goes ever -- by the way.
It's another play because all the revenues and in China it's a play on the Chinese currency going up in value which we very much state is going to be happening over the next six to twelve months.
Told him anything scary we've heard a tons of just not -- not very good economic data at all plus the situation you have -- really -- anywhere you might be re pricing as opposed to just taking a little bit of correction here.
Look at I -- is very scared about European banks that hold a lot of -- Greek debt but Spanish debt Portuguese debt.
So the place that you know we're so if you look at where we're -- -- a lot we're still sort European banks.
Just about -- the larger the bank -- edited to be sorted and and they have not re price.
For not only.
The pigs you know Portugal Ireland.
Greece Spain etc.
and in Italy but also be -- the European that the -- European and eastern European countries.
That have -- all of their debt in euros in -- and you look at you don't Albania you look at that you know Czechoslovakia etc.
President you're a mortgage on your -- of the tackles but yet.
-- were refinanced in euros at that was the year though crashing they're finally getting some really look for a while they're they're thousand dollar a month.
You know of -- thousand our -- -- 2000 euros a month simply because of that ship will the eastern European companies with the the dollar coming down you are coming down sorry.
Are actually is certainly going to be in a better position here so I I I I'm not scared of those moments here it is European banks that -- all this means that it's the former Czechoslovakia.
And it's the former change wave now with NBC.
And be a nice -- -- as well as all of but I'll tell you went back and pop up.
I'm coming back -- here every Friday you know that I I just.
I just try to be in the presence of Tracy -- to Cyprus.
I could see it that every day -- -- and let me tell us that.
How -- I love that -- Told -- that -- end the B team we're glad he has a chance to a chat with us.
From east and he's actually been NBC for awhile -- get something that and he's got a good look gallons do good things we take a -- that would Jeff Flock.
But it's not -- Indy investing in Indy films the love that.
-- -- -- -- Dot com live trees burns Chris -- the Dow is down 274 points oil is a little bit of -- freefall.
It is down to about 66000 -- that we haven't seen that he.
Forever and ever it feels like Tillman was talking about 62 dollars a barrel and I thought that's never gonna hit that low -- me about low blood attended stops trading today.
-- Yeah that's kind of scary out of translators translate into your commute so that's we're not to jump flattens engine need.
No lie I was thinking you -- in Switzerland I was excited for you Jeff you're talking about small businesses.
Every Saturday didn't -- and I to sit on and we talked -- small business -- The FDA says the credit crunch is past that garbage these people cannot get loans Jeff Flock.
There you go -- that so what we're trying to you know suss out today -- you you can get it right on the head when you talk about the people are calling in.
But you know if you do look at SBA.
Actually recent survey found 91% of small business owners -- are getting the credit they need or don't need additional credit so we thought let's look -- the main street.
Let's talk to somebody.
Like Bob and -- And as Dan come on over to Dan has to be a jewelry store in town -- -- -- fine unnerved.
Fine -- -- Yes we're located -- -- zero in on him.
Being proper isn't profitable and plugging away with a political should be assigned to the -- -- -- -- profitability to and you run what.
He -- fine Jewelers in Geneva we've been here for over thirty years and again.
Profitable and been a long time now the government now oil or the congress.
House financial services committee just past small business lending fund act thirty billion dollars.
TARP money that will go to small medium sized banks to land to guys like you.
Do you need money.
Right fabulous I think that's absolutely great idea because that's what drives our economy the innovation and the creativity of small businesses.
-- solidarity when the business struggles it comes together and it's our economies -- You guys are a position to -- Q do you -- funds right now TV do you have a problem with one we always need funds we don't really have a problem with lending because I've been in it long enough that I'm pretty well set good relationship -- -- -- profitable -- Yes and have a good banker and it's worked hopeful the any new TARP monies will actually make it to the small businesses that needed which you don't think it has that.
No I don't.
Lets us see what's -- -- some small business here let's take a look at side because I think somebody was set out before you open that door let's wait 12.
Grams is hiring Tracy if you things don't go all the television industry and there you go.
Perhaps you -- it's been around -- -- Bob comes in.
You know -- -- -- to main street and you hear it on the phone on the weekends to just come out here and the you know kind of looking at what will remove this car and here's all the trades that -- -- -- maybe move that -- a little bit so we could be back through there.
But it's -- we're gonna -- -- what's this I've seen him only pearl.
He's gonna get them and the you know that that the economy right now it's the stock market take this downturn we hear about the problems with Greece in the debt.
Are you worried though that as more TARP funds flow out.
Anywhere but the debt becomes an issue.
That that eventually chokes off -- -- kind of recover.
Well I hope.
You know it's it's one of those crystal -- -- just don't have any control over it seems.
Small guy like me -- it doesn't affect me except when it trickles down but I feel it affects my customers most of all.
-- -- -- -- -- -- How do you feel about the economy in general right now I mean has this been that -- -- recovery and mature business what.
Yes I we've seen it we've seen more of -- amen total up.
-- feeling amongst our customers amongst others were coming in on a daily basis I think people are are finally starting to feel a little.
A little better about the whole economy and what's going and what did you -- that you -- killing any kind of choking though with this whole.
Do you know European debt crisis -- -- the consequent downturn and in the stock market.
I think it's uncertainty more than choking people -- on certain people are trying to be conservative trying to.
Hold and and that make any rash decisions.
Just let's see what goes -- let's see what happens in the next few years.
-- these kind of businesses jewelry and to some extent to ice cream and buy chocolate.
I mean -- this is stuff that is discretionary you don't know this is not bread and milk.
This is stuff that you know you need to have a few dollars and to make a choice to go and and spent money on so.
-- very important of these guys.
And you know where we go with lending a small business I think is largely determine where we go with the economy.
Discretionary unless of course you're -- Fox Business Network crew they're doing a story he then you get all you you could possibly -- -- in the -- right yet.
And you know I'll tell you the beat that that the Dutch chocolate consider -- -- up against Dutch dark chocolate with bitter chips from -- my god yup.
-- to -- -- I was let's get into it then we'll let you dig into it then thanks Jeff thank you have.
Thanks guys Jeff Flock by the way coining the phrase that case today holy crow.
I -- -- on both couldn't contain himself.
When he was looking at some of the chocolate that is that it I mean.
This is what our countries based on a small office as.
-- -- -- do hope that we units those small town like that Lake Geneva Illinois yeah you and this is the old school bankers bomb that know who those you know small business owners were known for years and you know there's a little bit more of handshake deal as opposed to our new underwriting standards won't allow -- -- -- that loan so at least you opens it you hope that happens it's and I say that.
-- that's we have heard that we've heard that you better shot get in the door to the top even -- -- about getting alone but at the end today signed an.
-- dale -- Ressa joins us right he's CEO of a very.
-- -- company's founder institute he joins us from Mountain View California right now but dale welcome to the show.
Penetrates the maker has the over and we were just talking or very -- solve and at the at the that Google developers conference -- -- it's just a -- on the corner from where you are.
-- It is still seems to be much like there wasn't dot com days backfield 1012 years ago.
All -- a great entrepreneurial spirit in the tech space in your company is sort of tries to continue to build that up don't you.
Yeah our our goal.
Is to help entrepreneur has launched their dream business.
The founder institute which -- on this four month training and apprenticeship program for entrepreneurs.
Each week we get three top startup CEOs from the area.
To come and and share their experiences building a successful.
Then the enrolled -- go out and are given company building assignments that.
Help them to realize their dream our our goal was the institute.
Is to help 1000.
Companies -- launched each and every year.
So I haven't read part of this and it I'm you know I'm onto the I want an apprenticeship I -- part of program -- -- -- it.
Hopefully you have an idea and you have the passion and desire to get going.
Once you do you just go to the -- institute dot com you apply.
We take a few hundred applications per each location that we operate.
We then give you screaming past.
And if you pass your hand it's very simple and then you join a group of peers all of whom are working -- down there.
To build their dream businesses and I tell you -- as a guy who started eight companies.
It's so important.
To have here is -- working with the U.
To try and figure out what's going on because a lot of times you don't realize that you hiring challenges the challenges and incorporating.
Now -- along with thirty or fifty other people.
Doing the exact same thing at the exact same time -- if you were prominent employer difficulty.
With -- corporation.
-- just lean over.
Ask someone for how.
And boom they'll tell you what they've done to deal with the same issue and you can share notes in secrets.
I dale I imagine if you enroll in the program your very your very highly motivated individually you want to -- it.
-- I noticed in your four month long program you have an attrition rate of 50% that's higher than Navy SEALs for crying out loud.
Why is that so why.
Well you know -- some would say attrition is good at the end of the day we want to graduate people.
Who are serious.
About starting companies so -- a couple of couple different things happen.
Creating -- business is hard work and a lot of people don't realize exactly how much hard work is so they come into the program they start getting going.
They're excited and then they realize wow you know this is an eighty hour per week commitment once you know I quit my job and get going full time so maybe that's not right for me and that's okay.
The other thing is that it's difficult to come up with a good idea.
The top CEOs.
For startups in the world are putting you through the paces on your idea -- critiquing your business model that carrying apart the details.
And if your idea doesn't stand up to scrutiny.
A lot of people have to go back to the drawing board so what we actually say is hey if you're not ready leave the program now and you can come back for free.
In the next semester when your further along in your ideas -- today.
Dale we gotta run but quickly you're in that venture capitalist world are you seeing a change -- turn at all I use and obesity -- -- cast for so long.
Are they finally using it are they still -- mountainside.
DC is for the most part are sitting on the sidelines within the last year about 50% of all venture capital firms.
Have disappear they've they've essentially gone out of business they may have a shingles still off.
Because they're managing existing.
Deals that they did -- while back but they're not making your investment but there's been a sea change you're getting a lot of former entrepreneurs.
A lot of venture capitalists that still have money in reserve.
Going after earlier stage deals so.
Quite frankly you know I I would say that 2010.
Is the year of the Angel.
Angel investors are individuals wealthy individuals -- former entrepreneurs that are making investments in young companies.
And I'd say it's also the year of early stage investing -- so.
It might be one of the best times in history to start a company because a lot of people are putting money in.
Right when you launch and that is where all the action is today.
You saw a day -- tips for making it work if you are a on -- in north.
The website -- founder institute dot com if you -- -- check out the formal apprenticeship program I've been forward slash courses thanks to dale great stuff.
Thank you Dan thank you dale -- he is the founder of the CEO rather and the founder of the founder institute.
-- makes sense I wanted to I mean he's made some great points -- because now is the perfect time people need to understand that didn't you can get space for for cheap you products for.
You know when your private -- products on -- and then -- so much you can do as a precaution people should get out there because as we just talked to Jeff Flock that's what makes his company ground.
And serving eleven cities right now the founder institute hoping not to grow it even more.
There aren't gonna take a break back with more when it's not about films we've got a lot lately and I enjoy that.
If the golf.
Welcome back but this is dot com live market's down have Dow at least down almost 300 points were down 293.
I know from our executive producer for Barney -- saying that -- did days so heavy people are trading so much clearly they're selling.
That Ameritrade TD Ameritrade.
Customers have a tough time -- -- -- I -- a look now -- cost 300 we're down 304 on the Dow.
I think that's organized right now -- and -- again amount will be -- done get this over with -- on oil still down though.
More than 4050 cents.
People are -- -- was say -- sort of shifting money from you know one asset class to the next inning going from stocks.
Two Indy films mean maybe that's where they're making their -- investment I don't think they were in stocks I mean we were in.
Not bonds funds and -- -- we're gonna get that you're a little bit because it's a very interest the investment vehicle where you look.
Can invest an independent films and you're guaranteed to get them on the silver screen -- before we talk about that faces again tells all caught her -- that marketplace.
Joseph Varney flying coast.
Your best investment is a -- -- some very nice area.
Five most popular -- spots for vacation homes right now some in the market to buy a home mortgage rates low well under 5% estimated time to do -- second home as we've done an easy second out.
Home away real estate dot com home away this attack comes -- let's say they read the top five.
Most popular places I'll start from vital work down -- -- -- number one.
-- seven -- -- you got universal SeaWorld does need all everything right there.
Actually their lesson from the top I'll go with them early -- is number one -- South Carolina.
Poconos now and I don't know what it is about the Poconos I think about that and lives in those commercials with the champagne glass and just I don't know in this and that I just hadn't expected -- North Carolina man and follow gorgeous smoky blue ridge right greatly with Carolina great -- national park -- -- -- spring California that -- -- nice week nice and -- Orlando so if you're in the market for a home he got the pass on the side.
Go get that you can scoop up some really fun properties weird earlier on crane -- you that you can go to Miami -- -- a Condo for lake.
You know synagogues and what are you asking was that -- some cash though because it got fat cats -- interesting in a Miami.
Here if you go -- -- home for foreclosure you go to the courthouse in -- on the steps.
You -- come -- which -- percent right there -- got it handed to them and then you have sixty to sixty days I think it is to come up with a bounce -- thirty days to come up with a bounce.
-- go to the court asking you 5% cash on the spot you know -- bound by the next that.
By the -- so you -- you basically don't go to the courthouse unless you have the cash to buy this thing within 24 hours so.
You you got the 5% down -- -- -- say look I -- a cigarette boat.
Coming in you know of the for the into the keys in -- marathon -- -- the rest of the money for you tomorrow have a thing.
All right let's move on wait Bradley sealed -- -- but everything on that you feel me on that -- Some people -- cash in in some ways the other ways if you have business models in which they generate cash.
-- has one in which generates so hopefully a lot of cash for his investors CEO of the need as -- -- how are you.
Very good thank you for having me today.
This program is a program where it if I filed an investor I can invest an independent films without having to do it individually and each film -- each film maker right and it it guarantees -- at the -- -- -- make a silver screen somewhere right.
Indeed indeed we've pioneered the manage risk approach to independent film investing.
And every film that investors review.
Have six key elements that allow them to really have a greater chance of succeeding in the market place.
And it's having 24/7 professional development and production.
Recognizable talent start to finish financing for every aspect of the project.
And as well.
Each of the investors who receives guaranteed theatrical distribution.
Throughout the United States and we have a -- insularity distribution with Vivendi entertainment.
And then as well each project has.
Eight and all of the investors because of their ultimately the distributor in the end the -- best executive producer.
They get first dollar gross revenues so there are always the first to be paid.
Last what a deal yeah -- no why do this you're attack you -- -- -- -- in the tech arena for awhile right.
So you must -- utilized a see you must've seen some sort of you know dollar -- being being the -- I get in this business -- is that why -- made the transition.
Well actually we were transitioning out of our fund and I wanted to make independent film investments.
And as I get it deep dive going through the research of the industry I realize that the most persistent problem.
Was that more than 95%.
Of the films produced independently.
We're never distributed.
So devised a solution set for this and that's where they Genesis of the indians' past came for a what -- -- minimum requirements in terms of investing.
These the group of community investors we work -- it.
Are individuals and -- wealth managers that Federer on individual basis they need to be either an accredited and or qualified investor.
And the minimums for investment.
Go all the way down to 50000 dollars so that they can diversify their portfolio.
In this particular area assets.
-- -- -- -- -- -- -- -- No we haven't we just released our first film the beginning of the year.
We have a very exciting project that's releasing next fall that were working on right now.
And it's really key to this industry and really any any investment portfolio.
We stress that every investor when they originally come to us that they need to invest in two.
Three to five different feature films because while we can manage and mitigate the vast majority of risk.
That exist in the marketplace.
There's a subjective aspect at the end of the day that we can't completely mitigate away.
Thank you less to become a member of any vests.
And you pay a membership fee that way does that that you can pick and choose it what investments he wants to make the other advisory board that advises these investors -- That you know more about the filmmaker etc.
Indeed we have a complete independent film studio.
Run by a top tier individual mark Burton -- an academy nominated producer.
And he runs this studio as a separate entity.
And individuals when they look at a project they're going to be able to see you know literally every detail the project.
All the way through casting announcements so that they're able to understand what that look and feel of the projects going to be.
Who the director is going to be where will be shot and what more importantly what are the target markets what are the markets we're going after.
Who were bringing this project to an end does that make sense you know are they likely to want to buy this.
And go to local Cineplex and see the film hopefully again and again.
-- I love they've given us and I love the sport in the indie film industry.
Wait Bradley CEO of Indy best out from LA -- -- thanks again -- Thank you very much I think it's -- Think they were that is critical I'm a big anything and -- hoping he's make a little bit of the more of a comeback it just seems like now everything we talk about movies we're talking about the big blockbusters are talking about.
You know I need to get the funding and they deal -- becoming not only PG third it's not PG think it's sort of like more -- -- G.
You know phenomenon right now a lot of kids -- moving into the summer a lot of these movies -- kid related films.
While the Pentagon as -- famine -- we got -- about this market that.
We -- down on the street -- downgrade of putting -- -- standard 42 points on the Dow right now now he got the S&P down about forty points NASDAQ down 93.
Boiled down no comment today but hey -- -- -- today we can't take responsibility for the right.
This doesn't pass today it is necessary -- this kind of right.
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