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Happy hump day I said then another.
That -- crazy parents Chris got it -- like and I think that but the Dow is up -- 113 points that.
I'm pretty sure Chris cutter Alex and his that's not that you did that is happy hump day that I don't like.
It's that happy any day.
-- day I developed scientific happy -- -- 12 -- -- like that events like in the office and think.
From somebody who has a case of the Mondays you know I hate all that stuff happy Wednesday happy Friday happy Monday would have.
Good day everybody its global clock and -- a couple 113 points and your alarm clock we do it for me please -- it's.
-- today is the -- -- and twelve points right now on Nam.
If Ben Bernanke speaking this morning the market really I guess if you -- when Ben Bernanke started talking market related move anywhere the move up didn't move down.
For quite some time it really was here in the last hour that we've really seen the markets spiked up and pick up a little bit of momentum here.
Building on yesterday's strange day.
Apple 123 on the Dow and get down on the NASDAQ we analyst chip names.
That where they downgrade yesterday and yet -- they -- they drug the NASDAQ Soledad in negative territory it's really I would have a day like that but.
-- building a little bit of momentum now I'm sure the volume isn't completely anemic.
But you're an energy stocks are bouncing back that's part of this that even something Transocean.
Today so we -- will turn around.
You know some -- -- we saw yesterday said wouldn't be surprised these you know a couple days at this.
Upswing because the market and in so dramatically oversold and I'm sure I know we're gonna talk more about this and you mentioned -- Ben Bernanke being grilled yet again on the hill Q&A session on the right now.
I'm sorry I see this every time I give it got props for sitting there and not the relative bottle what are across the table to some of them -- now the question suggests that.
Any other thing too is -- he talks a lot about -- the growing.
A national debt that we have and how we've got to get this under control but I light but I don't think there's anything new and yet there's nothing new about that I know we all know yet where we're -- our economy is gonna.
Have us seriously constrained growth if we don't get our debt in check and we know that sold so I don't understand why a you made a big deal about this morning yet see it's a big deal in the Fed Chairman I guess says that but -- we've heard that from all kinds of.
Economists and economists these -- has the same thing but he needs to convince congress -- -- -- candidates congress -- -- got to stop -- -- its power cannot convince.
Mean how good how congress can't convince yeah.
Thailand -- Lines that Jack -- -- right now chief investment officer at Harris bank are up in Chicago good to see again Jack how aria.
I'm Chris banks what do you make of Ben Bernanke the last couple of days because I think yesterday in Tracy talked about the silly today yesterday or Monday night.
Was more of a short term look we're not gonna have a double dip recession we should be able to ride this thing out even though recovery is going to be looked somewhat painful.
And today is a little more long term look 510 years down the road if we don't get our deficits in order we're going to be in big trouble is that sort of how you read it.
Yeah I mean that's my sense Chris you know that the thing is -- -- the if the Fed -- is it's kind of like my little lob miniature Dachshund I mean essentially when he doesn't have much ammunition left he has to talk you know.
Aren't really about the and unfortunately there is a lot of ipodder -- and so off.
Like what the chairman has to do is talk this economy -- at the same time temper those.
You know optimistic.
-- that optimistic sentiment with.
-- -- -- a little caution.
-- things look pretty say he has got to walk in an ally in -- can't go.
Actually it surprises me is that he's actually saying we gotta do something -- we're in dire straits this is not typical talk because he has to he -- and they even said it.
The congressional panel -- today the market moves.
When he speaks he -- to be very careful.
Absolutely but at the same time and I will say I mean one of the things that.
Greenspan probably did right.
Although it wasn't as affected was acted as the conscious.
The conscience for congress I mean.
You know it's the Federal Reserve chairman's job to impress upon congress to say we need you know action in this general area we need to get.
These kinds of things in order and implore congress to take some proactive steps unfortunately.
As we've seen in -- track record congress is just not set up to make proactive decisions.
Well lets us rich -- you know little video on the -- from Washington about exactly what Ben Bernanke speaking about today Jack this market's really tough to read.
How are you reading it right now -- what signs are you looking for in terms of finding out -- -- figuring out which way the wind is blowing.
Sure Chris well.
You know of that the premise that we have is we're still mired in this secular sideways market that started in roughly 2000.
Where we're on this roller coaster up and down but and and not going very far -- that said.
That buy and hold is stills -- seriously called into question.
Unfortunately has some Monday's close we didn't break that by below what we call -- a breakdown band which is essentially a derivative.
The 200 day moving average.
And out as a result of that we are actually lightning are risk exposure in here taking.
These last couple days of gains to tried to.
You know lighten up our exposure somewhat and now you know ride through with a little more little less risk so we're not betting against the market.
But on the other hand you know given the uncertainty and given.
This this roller coaster where -- we think it's just we're better serve especially during the course of the summer.
Riding through -- slightly lower equity exposure.
Exactly what worries -- the -- is it.
What's going on here in the US and you know fiscal financial reform is it what's going on overseas what's keeping up -- -- the most these days.
Sure I would say Tracy it's it's you know really the lack of a catalyst.
You know I had really had a lot of high hopes for the employment last Friday's employment report.
Having spoken to a lot of CEOs.
I got the sense during the downturn that many.
Corporate executives had gotten rid of too many workers during 20082009.
-- -- operating.
Generally with too few too -- to work -- and that's why we're seeing productivity.
Spiked to levels that are clearly in my mind unsustainable.
And then we started seeing temp hiring really ramp up and historically.
Temp hiring has been a just a remarkable.
Predecessor of permanent hiring and unfortunately this time around it doesn't seem that way and so.
You know in many respects it seems like were kind of mirroring.
Her mimicking the economies of Japan and Europe.
Where there's just a lot of temp hiring these sort of permanent temp.
And to me that's not a you know as as -- solid recovery as I'd like to see.
-- -- one last thing you like -- particular now S&P down about 12% from our.
Late April highs any any -- particular segment -- war you know the basket -- -- you look at that right now because of this fullback.
Sure we do like US large cap probably our favors favorite sector in the world right now and our preference is to play.
Emerging market economic growth.
Hear from this country selling -- data economies so you know things like industrials.
Even some consumer discretionary.
You know could be a decent play here still in the last -- large cap arena.
Jack thanks so much for sharing your thoughts with us as Alice.
Haven't seen as an officer at Harris private bank not -- that Jack how projects -- focused on the markets right now come into us from Chicago with the Blackhawks.
Literally one game away from wasting would stand -- -- aware of all this aren't you -- silent up.
-- think it didn't -- lately it.
Chicago Blackhawks right now up three games to two in their Stanley Cup finals series against the Philadelphia Flyers and I do have to say this.
To all my Philly fans including.
One -- -- is on the show all the time flyers.
What last won the Stanley Cup in 1970 fives are not too bad the Blackhawks had -- since 1962.
All but they've been in the finals six times.
And lost the last six finals they've been in since they live up yet flies look I've been really good.
But not quite good enough you know like season this year so -- -- -- rich kids and joins us.
Now right now but I do know about that -- ads and joins us in DC right now about Ben Bernanke how -- -- rich.
-- good night and Bernanke's a Blackhawks fan I just talked about it while also he he had to get out of there if he's trying to get out of -- -- let's not live plant is really -- -- -- -- -- -- Right it really is the he said -- and six to begin with so good good job on his part -- You know it's if this is one of those things -- he has to go away knowing.
This is gonna take him a long time whenever he takes Q and a's got to know that everybody's gonna throw something -- and in those questions aren't going to be.
One sentence questions either.
Now I typically what they are as you'll hear you get five minutes for questions for each lawmaker to lawmaker will take about four and a half minutes -- and leave them with a little bit of time to -- Really what what turned out to be four and -- half minute statement but he's he's got to catch a plane at 1230.
You'll hear this from the Treasury Secretary and the Fed Chairman you know they they give a time limit on these -- -- -- one round.
Five minutes each it's progressing nicely the Fed chair.
Talking a lot about debt and deficits today yeah you again brings with him another warning of the US federal deficit in the federal deficit picture.
He says that congress needs to act it needs to put -- plan in place and for any more fiscal.
Stimulus or spending that the government wants to do he recommends that.
-- congress put exit strategy for all this fiscal support in place if it does plan on doing any more spending.
Which I -- Landon you know important things you actually reported this morning at ten -- -- stuck with when the embargo was lifted was that.
He's very concerned about health care spending.
And yet we agenda through this whole Health Care Reform and he's still very worried about it.
Right that's stuck at a -- -- -- I was looking at -- I side you know the rising health care costs in congress needs to deal that.
We all thought the congress had dealt with them when they are all the health care system and you -- did the beginning of of this year last year so.
That's something that I I I think -- can get a phone call from the administration on because that has -- one of their points.
That this is something that will lower health care costs in the long term not only to help families and businesses but to help the federal government.
Bernanke making a statement today that -- says otherwise the federal government still needs to tackle rising health care costs.
You know -- we've certainly heard from the -- of the Kansas City fed -- over the last few months.
Being the only dissension in the Fed in terms of wanting to raise rates -- getting louder and louder what was the tone.
From Bernanke today about that if anything.
It's amazing you can tell you it's something about the economy in the times we live in the Fed Chairman.
I don't think -- faced one question on interest rates may have missile doing that I hit a that we haven't heard too much.
Interest -- talk in the position and of Bernanke has been.
We want to wait till the recovery really takes hold -- what we've heard from him today a before they raise interest rates and what we heard from Ben Bernanke today.
Was that we can expect a moderate recovery over the next few years.
And that unemployment is going to come down slowly over the next few years so it doesn't seem like he's he's looking at eighty.
Extreme V shape recovery here.
Yet very encouraging parents.
Let that let you don't walk down that how my -- that simple.
-- flyers -- just because don't make everyone in the black on settlements is -- my.
-- -- and no one's 1961.
To -- you would I would think would bring.
They my daughters they are you know.
Tip your hat hat it -- hockey is that's evidence I knew that you think that got I knew what you -- and limit them.
-- On the back us.
Back side his right that's kind of the Dow -- up eleven points -- we had big -- since last night actually the biggest of 2010 thus far.
And it was -- not that it was ladies' night.
-- -- and the fee and bank.
Out of sorts -- even setting.
Good to real relaxed now I love that he's -- them having to me and -- -- isn't it little since the Bennett he's probably better you know if it.
-- -- god is here bound to have political lack author political mentioned look you won now what to discuss last night's well it was it was them -- It was ideal Super Duper Tuesday there were twelve states voting and it was ladies night I mean there was.
Big winners in Arkansas in the -- in California and in almost in South Carolina.
Others are there's a runoff in South Carolina -- women won the majority of the big races yesterday.
Separate say anything to -- weren't that well despite having it can't.
This probably is probably.
Something like that although you know UK you could spin this and an anti incumbent year in which you have -- you know small percentage of women holding office.
That if voters are looking for something new he might as well try women because the -- strewn about his fifth.
The theory you know and none Whitman in California.
To the women of business backgrounds to women who is sort of self made women if you will what does that say about that stated maybe politics in this country in general.
Well I think what -- it was mostly is that you can still spend an awful lot of your own money and buy a C.
I mean Meg Whitman spent nearly eighty dollars for every vote she gotten so it's and -- just an extraordinary amount of money and and Carly Fiorina.
The damsel try and -- them back on that won't date for the fall elections and in it and try and focus on hey it's not just about lying low flow it's about the best candidate that's right in more often and I've -- -- strategy fails though you can look at New York City -- Michael Bloomberg who's bought three elections in a row or you know you look in New Jersey Jon Corzine was successful.
In both the senate in in in this first governor's race.
So you know perhaps -- can happen although that's you know.
That is the one thing that will happen in the fall campaign is that that will be held against them.
But it's like it -- It's expensive went -- and it's not even the real one yeah not very efficient sir -- -- -- -- you think I mean not meg -- got to go out against your branches of its reckless -- million dollars most of -- they -- out of pocket.
Could see -- afford to spend and other -- and is it worth it at the end of the day.
It's probably worth that the earth is willing to be governor -- -- be very interest rate is probably one of the more interesting races because you've got Jerry Brown who was governor.
-- a generation ago for two terms he's he's a very interest in politician.
He has run the exact opposite campaign he has not been on television at all he's holding all his resources back.
He's been raising a lot of money but he realizes he's gonna go against Meg Whitman and he's got to save his resources until until when -- matter.
What does this platform all about because -- interest -- as you mention he has been governor before a completely different generation California was a completely different state when he was governor now.
Yes some of the same issues of the immigration and things like that but he's got this fiscal.
Issue that -- hanging over his head will he cut spending will he be able to make the necessary cuts.
Well I think -- can anyone govern California is probably the bigger question you know Arnold Schwarzenegger is there of the most unpopular governor in the nation right now.
Mainly due to the fact that this is you know very large economy in and of itself.
And it's just cratered in the last few years and -- -- the question is can you have a system in which there's.
You -- you have to vote on taxes so often in California and can you really allow those.
Decisions up to the people all the time to allow the governor -- government actually function and it's a very it's a very tough call.
-- and I think he sits -- and that's pretty key.
The governor tutored as a creator as well because he came in and they all do right -- coming gangbusters.
And he came in any any sort of moderate along the way just eventually I think users' hands of parents -- -- -- -- And we see it Governor Christie new -- coming gangbusters we talked earlier to Rick -- running New York State.
They are like full steam ahead and it's a matter of keeping that momentum and once -- in house that's that's our thing and it.
What the tough thing when it's all bad choices once you get there yeah.
You know it's -- at this point particularly given the economic situations the -- assault cutting cutting spending programs that are popular or raising taxes which is never popular.
The situation Nevada Sharon angles Tea Party here.
She wins the Republican side she's gonna go up against Harry Reid.
And I think the Democrats probably feel like she's the most beatable all the other candidates in this isn't the only -- -- we have the situation we have some -- all right.
Winning the primary and then maybe the people on the left say -- we'll get the middle vote and -- win.
Senator Reid is probably the lucky as politician in America today after that win if you look back -- just a few weeks ago when Rand Paul no surprise one -- Kentucky.
You know the very far very far right position and spent days days trying to explain himself and his positions Sharon angle in Nevada.
Makes him look like a moderate she is she is she is very much out of the mainstream so read got a very big victory yesterday.
Can you talk about blanch Lincoln's wind and what that means I mean because.
That could also mean a vote for financial -- on Wall Street as well.
Well that's what everybody it was very -- heading into yesterday's primary you have both the labor unions supporting bill halter who has her challenger.
And -- -- probably most Wall Street banks supporting bill halter because.
Did they realize that the only reason this derivatives proposal still in the Wall Street reform legislation.
Is because she was up four reelection while.
She's not only show up for reelection she's the democratic nominee now.
She goes into a very tough race but it's going to be very hard for senators who would like her to win or any of the Democrats to drop that provision right now so.
It's probably not a good day for banks although you never know with legislation.
The -- -- she could lose to mean that was -- -- and the battle for the democratic.
You know nomination.
So John -- that's the GOP that's who she's going to be -- going against.
Where is the middle stand in that state because you had.
Labor unions going against her they're obviously not going to support her November I wouldn't think they would support -- they may not vote Republican but they won't support her.
Is a vote.
If they do supporter does the middle and go away from her because they're voting anti union you know a lot of different things in play there.
There are a lot of different things in play and it was a very -- her winning was a big surprise last night because.
Usually in -- -- situations incumbents did not fare well if incumbents are forced -- -- run -- they don't farewell so this kind of how to grant cut against the grain.
It went differently and one of the big factors in Arkansas.
Might have been Bill Clinton.
Who came in -- still very popular in his home state who came in and campaigned vigorously for Blanche Lincoln.
And he made have made the difference is so when you look towards the general election he will be an even tougher fight for senator Lincoln.
But will Bill Clinton play a factor -- this is as well.
And we got to wrap -- quickly Carly Fiorina.
-- -- -- offense can should be -- Barbara Boxer well I think Democrats also won their favored candidate in that race because she was running against Tom Campbell who is a much more moderate.
And much more moderate Republican -- appeals to the mainstream in order for her to do as well as she did in the primary yesterday she ran very far to the right.
On issues like climate change and immigration and and things like that.
Taken real quick few seconds are more people in a vote this fall than we've seen in a long time community in your opinion on what people come to the polls.
When you look at the enthusiasm gap right now -- -- more Republicans probably will be voting this fall.
It's really remains to be seen if more Democrats will vote -- in the normal mid term cycle.
The Democrats realize that there their big hope.
In preventing a possible Republican takeover of the house and senate is to actually get.
Their supporters out there get those first time voters who came out to vote for Barack Obama in 2008.
If they can succeed in doing that then all bets are off but we still got a -- Leo many months before the election.
That's going to be tough though because many of those voters -- -- matter now very disheartened absolutely.
Thanks stating it thank you so perhaps they got -- founder of political wire author political -- book you won.
Now what im gonna have him back.
Next fall or maybe even before next fall -- -- again and again it was great great stuff thanks are -- it's a quick break when we come back Sandra Smith.
It's gonna tell us -- you can sell.
But tell people you sold six of them and try -- that you are people.
Fire your player.
Back -- -- that live trees average cost -- death and eighteen points.
Chris isn't -- to -- the open you are nests that sprint had early and thankfully Santa Smith is here and help us sort through it.
Talk time battery and I calculate a Muslim rush.
How do you make such a bad mistake -- -- it happened pretty bad mistake -- Sprint's got the HTC.
It's pretty much a big competitor to the iPhone -- to give you an idea.
But it's they're big phone.
And they came out and said hey record sales for this thing on day one that got on the launch of the phone.
They -- the sales were six times the better there's the device.
Six times better than the sand sun and instinct phone that sprint had -- that was put out that Samsung put out that way is.
Record sales there and they said it was two times as strong as a sales of the Palm Pre.
Launch -- -- of those numbers -- found a great and then if it.
Not really so they issued a statement.
Essentially saying we inadvertently fired in the comparison.
This is -- there were saying that sales on day one or three times that of the first three days of the sales of the instinct in the Palm Pre.
They said the actual total number of sales of the -- device on the -- -- with inline with the Samsung.
Instinct and the Palm Pre was so still could stay out we're not taking away from that they're weighing way I've stated -- do you make of the statement that -- that's inexcusable analysts pretty bad and as sprint has its own forecasters have put out numbers.
And then when they -- the sales they were selling -- that shelves but they weren't putting as many in stores.
So the big word and all the excitement came from the fact there's lines around and did you -- -- door at some of these stories they were selling out of them they simply weren't stocking is Manning.
So based on it was almost like based on the fervor they made the calculations.
-- destinations in their head without actually.
You know do in the -- and I intend to give you an idea just how.
The number wise how off they work.
When we say in line at the sales of those other other devices about a 150000.
Were sold -- And the inflated number that they originally put that was between 215300000.
Cynical -- Hey -- with this this is a book page one on day one when the vote comes out that's that it's on page one -- -- on everybody -- huge.
Is it records allies is today page eleven kind of in the back -- -- -- -- -- always good outside guys that is.
Well you know and that in the the statement is very much that I mean you can see it on their website they came out in all they did -- they made -- -- it to the original.
Statement black line out celebrating the sales and they said.
This is I -- -- we in inadvertently aired in the comparison is they're exact words.
I mean they -- we don't want to take away from the fact that these were still some pretty strong numbers and that this device.
Is a big competitor to other Smartphones out there but if you're.
If you're an investor and you're looking at those original numbers you might have been a little bit disappointed with the overstate although the stock -- and welts from -- comparatively.
And it got hurt and hit for a long time if that's the thing it's sort of balance of that little -- -- That's what that's why it's you know the to be sure is that it's not -- away from the fact that.
Companies fill out -- I want and and and had some big numbers and human hair on me yeah but those errors they can't let it happen again no way she could -- -- well.
It is still people still believe in numbers that -- they can now that they're not blow it out of the water next -- act they sent a thank you have finished that out almost went on with Sprint's evo.
Bomb Washington with -- -- Smart -- were higher 120 points from the great.
I'm -- again.
Actually up fiscal second quarter loss narrowed.
Because some part your write downs but the company's revenue jumped.
Because of its recent buy of Nortel assets the all helped and it of course -- -- analysts' expectations and you know.
Apple's app that's good -- I picked for you had a Grand Slam breakfast Danny's.
Yeah not got upgraded finally announced that they're getting bigger isn't Israeli -- in and Phelps.
The an analyst at felt felt that this is all good thing felt felt that you get back.
Raised it to a buy from hold periods tonight -- proactive nature of management.
I would be encouraged by the pro active nature if they continue to give free breakfasts on I was in February 14 -- -- that numerous.
Oh and oh my birthday and birthday you can go get a free breakfast car.
American -- all private equity lender actually extended its debt exchange offer.
To June ninth this extended day it was going so well that was good news and market was up 11%.
At SI international this is -- chip equipment maker.
Coming priced more shares.
And the market was very encouraged by the pricing of the shares they came out three dollars and five cents so.
Market react instinctively stuck up fourteen Newton and finally Rewards Network I like this.
The ticker is dying because it's you get rewards for eating at -- restaurants -- 6000 restaurants in this whole.
We'll see -- -- you know the infamous.
Wal-Mart yet that.
Equity group investments in -- and -- that I write on and not axiom that simple no when my thinking thinking about private equity investor fund whenever.
Of his equity group investors he -- -- -- -- meaning outstanding shares of Rewards Network so it's he offered a 36 premium actually to Tuesday's close.
But the rewards program is really cool they have well.
Over 101000 restaurants its participating in some shape or form but still -- it.
He said that he wants is done sooner rather than later so the stock was about -- up that 36%.
I have cynical I'm glad to -- so I don't really know but I would think that if you did and -- wrapped up these points -- -- -- you know every now and then think -- through it.
Of business though is you got to deal with that customer on one and you got to deal with the establishments the restaurants on the other and you got to make everybody happy I grilled stuff.
-- David -- is here with this presidency investment officer -- and company capital management good to see -- Revere well what do you make it -- now we're 123 yesterday up honored eleven -- today.
-- each of finding a footing here maybe not yet.
I don't think so I think that there are plenty of problems both domestically and also internationally that are going to.
Continue to rise up over the next few months weeks.
And that those full actually the market substantially lower.
Still we have our fine Ben Bernanke in front of congress yet again talking about debt it's going to be scary you think we're gonna see anything -- You know I think in America and the world this in the middle of the debt crisis and were probably in the bottom of the first inning on that.
If you look at the United States you have both a federal debt crisis.
Municipal debt crisis and in an agency debt crisis.
The interesting thing is is that.
The corporations and individuals in this country are doing a very very good job working their -- down it's really a -- problem that we have right now.
I noticed that in your picks.
Government -- bigger government kind of put your money in safer plays one of them is AS GR American servicemen tell me little -- down well.
This is -- company that provides prison dentistry in prison health care and basically.
They can come into prison systems both on the municipal and state level.
And take over that part of the prison and cut cost.
The municipality or the state by up to 40% and so with the fiscal crisis that we're seeing form both states municipalities.
The fact that you could save.
40% -- prison dentistry.
Is a fairly substantial savings the other thing is is that this is a fifteen billion dollar market.
-- and it's a business that basically is a duopoly there's a company called American service group which is publicly traded -- a company called C a -- which is private.
And they control a big percentage of the market.
But only about one point eight billion of -- fifteen billion dollar market is privatized so there's a lot of opportunity for growth and.
Out of it that's a tremendous idea Bernie Madoff he.
You can't I -- iShares silver trust ETF as opposed to gold which is what everybody else is picking these days how come.
Well because right now silvers and a very -- ratio are very high ratio in terms of silver to gold.
It's at the top end of that range.
Well gold is seen primarily as some monetary -- so -- has -- -- monetary usually in an investor and mutual fund long.
In the global economy does bounce back.
That's going to -- to me and force over as an industrial commodity.
Tracy had always said that you more more vociferously than me that the big -- of gold could be the worst stock.
At some points on in the future and to your point at least silver and platinum some of these other metals can be used for -- Itanium Itanium is exactly right.
Everybody's looking for a way to play this disaster in the gulf there's got to be that would be in the greatest -- always opportunity in Phoenix always rises you found a way.
Well one of the sites we really like is Hornbeck offshore symbols HUS.
Guys provide -- to go to offshore oil rigs -- men and equipment supplies.
To those rigs.
The majors have invested tens of billions of dollars in the gulf.
You know they're not gonna like those averaged just fall into the sea you've got to have people who supplied those of those people have to have supplies.
This is a company that basically does so it's a great way to play the golf while still being.
You know fairly.
Have these companies gotten it is well because we talked about I'm not gonna say it -- and so the cliche out there but.
You know the cliche that has some way to do -- with the bath water.
And a lot of other companies she says she shouldn't have -- thought he had good guilty by association of these stocks got hit another another bargain.
Yeah I think that there are some some bargains out there but I think you have to.
Really be careful because there -- some bargains out there but there are also some land mines out there.
We have to tell you David we got and yet.
Reader wrote in based on -- American service group in said that -- glad are murderers rapists and thieves are being well taken care of actually let it.
-- -- I don't have a problem with that but -- to your point there are a lot of fuel that would care about that and for those who do we have services let us not just -- if you go right and he did it provide other service it provides -- service that let their -- David thank you so much of him.
Thank you thank you David -- president chief investment officer of Korman and -- management.
-- looking at it for Texas.
That's and that's a place that's a great place down -- and thanks to come see anything.
But that's a quick break take a break -- I I think well I know you do.
Particularly for the violent criminals that -- and her children.
Come on -- -- -- -- dot com live about just 97 points right now through given a little bit of a back.
But still a very positive day you know yes you -- talking about.
Movies in toys associated with movies it's big business.
There are a lot of other licensing opportunities out there and Ira -- joins us right now founder and president -- in communications he's out in Las Vegas the international licensing expo Ira how are you.
I'm good thank you brought -- in this morning and both start at the movies because it seems the meal like that's about as big of a a growing segment as there is out there for licensing between.
Gains to -- -- you name it it's all about the big blockbuster movies these days.
Well it is always about the picked off blockbuster movies the tent -- that there's studios want shooter.
To rush out and see.
These days sometimes the marketing is actually more interesting than some of the movie yes.
Not not a usual.
One of the interesting things that we've seen this year is that if you look at.
The five big sequel movies this summer.
Toy Story 3 Shrek.
Sex in the city Iron Man and to what the next twilight movie.
All of them have the same marketing partners that they had a couple of years ago for their last movies and so not only of the movie sequels so -- the brand partners who were helping them to advertise them.
And then you get into the licensed merchandise and actually last year with a soft here for that it was a tough here in the video game business overall.
Sports video games to actually very well but the entertainment stuff with softer.
And you didn't have the kind of blockbuster films that were propelling that.
Nonetheless she had Disney that was very strong and -- probably accounts for about half 55%.
Of all the entertainment character licensing in the U latch.
We were talking about this earlier yesterday I didn't Nokia the new guy on the blocking IUE Manson a bunch of sequels -- -- -- -- -- that have been out there and say what you want about -- -- secret it is drives sales and marks the month.
-- how come you got and -- knew that was a license and you know I'm so lucky and I wanna go -- I don't know what's what is she like some parents Jenkins yeah -- I've she's not she's a known character but.
How did -- in his business.
It it's tough right now because the retailers are really the ones who -- controlling that.
Because they're saying no we're only gonna take something that we really know about and we want to see a proven track record.
Which is why for example last year you didn't have a lot of avatar merchandise -- -- and it did okay.
But a lot of people were caught off guard because nobody expected that film to be as huge as it was going to be.
-- as it turned out to be.
And the retailers -- gonna take a chance on something that they just didn't know was was gonna work or not they're trying to manage their inventories really carefully.
So you've got to probably start not at Wal-Mart or target which is where you ultimately want to be but you probably -- -- start someplace like hot topic.
Nice smaller boutique that.
Kind of specialty -- that that spinning and get you some exposure to.
A more rarefied audience if you will and when it works there then you roll it out to the big guys.
-- what's the big story with the World Cup starts this weekend it's the biggest what do you know and the world it only happens once every four years of they'll marketers -- again they've got to capitalize on having -- do that this year.
Well they better be there already.
I just -- some -- this morning that I think 97% of the tickets are sold.
Which is great -- that I think a 136000.
Were sold in the US.
Or to folks from the US.
So if you wanted to get into the merchandising on that it's going to be tough this year -- typically get at something like that which is a big event.
Most of the merchandise that is sold is souvenir and it's sold in the country where it takes place and you're dealing in in an economy where you know a third of the tickets did get -- in South Africa.
You know that feel like you know 1000003 I think -- -- were sold locally.
But you don't have the kind of economy that can support.
Real high priced tickets and high priced merchandise.
On the souvenirs so you're going to be selling to the folks -- -- there.
I think you'll also see as as particular teams do really well.
That national pride will will translate locally in those countries but again that's not typically where most of the sales are most of the sales are done.
On site as souvenirs you know.
Can you talk about the trends -- seeing at the -- mean.
What's happening how -- social media playing into the picture these days.
Social media is what's giving everybody a chance to talk about things even before it happens and as it happens.
One of the best examples like I can think of is is is actually restaurant reviews.
We're you know it used to be that you could take.
Take two or three months and work out the bugs when you open a new restaurant and now people are sort of twittering and and for swearing in whatever about.
Every -- they -- as soon as they get there and the restaurant is open for you know three hours well the same thing happens with movies.
It used to be that word of mouth with something that took at least overnight until you call somebody in the morning.
Now you've got it instantly and they're gonna show up to the midnight showing if you said it's really good and if not you killed movie within hours.
IRobot nothing -- -- reading about.
We got a lot of retailers that have gone out of business here in this recession yet to name sort of lives on -- the one I think about -- Circuit City.
Circuit City goes the way -- the name lives on in and -- if somebody has that as an online property right now is is this a popular thing now.
It's happening a lot you've got sharper image you've got Linens 'n Things you've got Bombay company.
That people are buying up that intellectual property as it's known in in the licensing business.
And they're exploiting -- in other ways and some of them are working quite well.
You're you're going to see I think more of that and not just with retail brands.
But as some of the large consumer products companies look back into there.
False and archives and -- brands that they're not doing anything with anyone they're gonna sell that off to somebody else to exploit and in different ways -- it might not be what the core product was originally.
But they're gonna take it into new directions.
Did -- kids rule this whole industry and the -- you know.
Happy -- my kids had to have it we got -- tenth anniversary coming up that is huge in my house there's a lot like that.
Really if it weren't for the kids -- to be buying the stuff.
Well it's kids it's collectibles that the adult stage you know when you're gonna talk about the doors that it's going to be at an older demographic.
Although the kids are into music terror.
You know and the kids -- propel a lot of it.
Certainly you know the Disney stuff in the Nickelodeon stuff.
That's where -- all of that is is certainly coming from -- and but you've also got collectibles market you know you look at something like NASCAR for example.
And and most of their shelter and die cast cars and they're not going to kids it's not like Mattel Hot Wheels that it's a different kind of business.
And -- those collectibles that's a big business NASCAR accounts for about 8% of sports merchandise sold in the US.
How much city's sports leagues like NASCAR I know the NFL does -- ridiculous amount of licensing business -- -- how much today rely on that kind of income.
To stay afloat is that becoming a larger percentage -- small percentage of what they need to move forward.
Hey here's what goes on in licensing licensing.
We generally talk about the retail sales revenue deal though.
You know you have to -- calculation to get to what that income really is.
For a lead but we would talk about.
Major League Baseball is actually the largest licensing program and it's close to three billion dollars NFL it's not far behind it.
The NBA is about two point six billion.
And again that's retail sales -- sort have to backtrack.
Is it keeping them afloat -- is better raise revenue stream yes and is -- a great revenue stream compared to.
What goes into investing in it because really the manufacturers are taking most of the risk.
And when they're doing licensing business because they're the ones were maintaining the inventory during the product development paying royalties.
So it's great income for the -- -- and they're gonna continue pursuing -- some of the things they're doing.
Going after the women's market and and if you look back over the last 010 years.
Major League Baseball NBA.
NFL all tried to get more into the women's market -- have been.
More or less successful right now -- -- pretty successful at it they're developing lines that are more sophisticated they're doing things together with Victoria's Secret -- -- with a Milan know is very active out there.
So there's a lot going on that that people can tap into.
That's very cheering -- Yankee stuff from the -- secret now how about that I have great stuff yeah thanks so much.
Thank you very much for having me and he's I -- fact founder and president of -- communications Alan Las Vegas talking all things.
You know it's -- -- radicalism is forcing is is the -- it's the Nikes of the world that make the field.
The NFL as you say -- you can -- that logo on their pay -- this much charges logo giants logo whatever.
But it's the manufacture and also when you think about the World Cup he said they don't know where it's been US Germany.
France Japan and South Korea.
Places where you have this huge population anyways.
You go to South Africa.
Yet people are coming in buying tickets but you don't have that.
Home -- base -- that you don't think you can I mean you can start sounds like a wolf right now that are stamped at the World Cup announcements on a question I -- you go to now.
-- Amazon through an Amazon or any any website you get all kinds of what's up stuff for -- I'll tell you across Iraq.
All Taylor caught my -- Look -- X it's this is tough decision to talk about this because it is charity.
In the gates foundation Bill Gates and his wife Melinda put a lot of money out there for charity honey honey you do you base that is the red kind of ridiculous story.
There -- putting ten million dollars in prizes up to the first -- second help Haitians send and receive money through their cell phones.
In this sort of struck me.
Patients itself on the -- just poor people in general me over the last four years they've committed nearly 500 million dollars globally to get poor people.
Mobile access to financial services.
You know I look it.
Look at this look at this.
These people need homes they have cell phones -- there even any cell phone towers in Haiti right now.
It just strikes me that this is the I don't know the thrust of charity to me it seems like have a food and how about.
Buildings that erupts.
The earthquake code maybe that might be something that kind of take a look at so again I hate -- kinda.
That's golf -- charity because charity is charity and it is going to people down there and eighty and they do have a completely -- banking system.
By the way because of this disease it's a disaster but you know this is a disaster that had no place to live their living intense I just can't believe that they would have cell phones and it.
That you all these poor people and the of the continent of Africa have cell phones.
You know those cellphone towers that they have that they make them look like pine trees have you seen those really bad pine trees they have those on the Serengeti -- -- that one tree out there ally and -- underneath that tree and it looks like a cell -- tally of cellphone towers all over the place in very poor communities in Africa I guess and they need to do their banking.
You know that I -- he eats and they don't have freedom and deal rebels are trying to kill.
-- -- -- -- And then move on that's that's that would -- -- -- I mean hey you know that no IKEA after it's break time please help me at every level had talked to Michael Woodward that it would hate coming up.
I'm going to.
But that's not this is dot com live -- difference this kind of doubts about a 107.
When -- -- -- and -- -- I think you just be happy you take this as I was saying -- -- to someone earlier in the day that was seeing.
Or yesterday after yesterday's close.
We almost all expect to see a couple of days people come back a little trying to make some money in this and then who knows what happens after that.
You know we had the in this is all in eight after 450 points to the downside.
Over two day period one of those days being Friday and of course -- -- the jobs report on Friday it was not.
Great by really any stretch of the imagination.
There aren't a whole lot of jobs out there our next guest is gonna talk about that maybe some that are out there for college kids after Michael.
What -- doctor woody present Miami based consulting firm human capital integrated joins us right now doctor -- how are you.
I'm good Chris how are you still wasn't a great jobs report on Friday.
Yeah a lot of college kids that eight have this summer that they've got to find some part time work four and -- Are just graduating is well on entering the workforce what's it looking like for these youngsters.
You know Chris is pretty rough you know let's remember that.
The Great Recession is fundamentally.
Change the employment landscape in this country -- we've got fifty million people unemployed right now.
We've got seven million people who have been out of work for six months or longer.
And these numbers are actually up from this time last year so -- -- to get to the college kids segment when you look at.
That report the twenty to 24 year old segment.
Candidate they have an unemployment rate of 15%.
So it's definitely rough out there and I think that speaks to a jobless recovery.
What do these kids do then -- -- they just got out this have for years in college the parents spent but loads of money.
Now what do we do I mean I can't I can go flip burgers although I'm at work.
Yeah yeah I think the challenges right now is you got to start thinking differently that the new economy is no longer about.
Chasing opportunities it's about creating opportunities.
And that means for these young kids coming out they got to remember this is a buyer's market for employers.
If they have the pick of the litter and so.
His kids -- not only facing 15% unemployment Justin in their age group.
But they're also facing you know those who -- -- -- them unemployed who are also competing with them then so they got to find ways to be very creative.
They're gonna have to step back they got to check your ego at the door to be honest because some of the opportunities they are hoping for aren't going to be there.
-- going to be about being creative and it really taking an entrepreneurial mindset.
And yet some of -- -- involved volunteering.
Taking on internships.
Because the reality -- you know -- here.
If you're one of those people who have been out of work for for six months or longer you have time.
And you gotta start thinking about how to use that time in dual track while you're looking for the opportunity you want.
Take some time and and volunteers look for internships.
And also be in perspective and think about how do you differentiate yourself from her because you don't wanna get caught her.
Really nothing to about the heard it said its largest right now it is the season now the aspect to this is well.
If you're one of state.
I don't know -- bodies kids maybe taking European vacation for six months -- -- -- dad's money and then come back with that -- -- suggestion look at a different time -- Yeah I -- -- Stewart look like.
So be careful to make sure I don't recommend that is that it get any calls from him but you know.
Here's the thing that -- pushing really hard and an and then pushing in my new book do you plan isn't telling people to take accountability for themselves young or old or old because.
Here's the reality is that jobs just aren't there like he used to be seen at the start thinking about how to like differentiate myself how -- look inward first.
Before I go out and start doing all the -- local stuff because what I'm finding in people I'm talking to.
Is they're spending their time you re right -- -- resonate going to job fairs getting on the job boards online and you know what.
So is everybody else what you gotta do is step back and think about how -- differentiate myself well I bring in ten people.
How to live look at respectively and -- -- you know my training in psychology site attendance -- the introspection.
But it's a way for you to step back and think about.
How to like put forth a brand package that's different than those other people and how to light projected.
So that when people look at me they know that I bring something different to the table and most importantly.
You -- -- -- your past and recruiters your family your friends your colleagues those people that know about you.
You gotta make sure that you planned and there had those little talking points even the annoying talking points that you guys have to deal with from politicians are left right.
They can be effective in sticking in your mind and if those are stuck in the minds of your friends family or like I say your -- -- recruiters.
You know when opportunities come up they'll think you know it Tracy would be great person to talk to let me let me connect to a her.
What about the high school kids like who is right now be tougher for them right cat because in yeah yeah -- -- taken their jobs who aren't even got unemployed.
People but we're just so does that will do anything so.
I think it did work as.
Right Tracy you know you're right because the sixteen and nineteen year old segment has a 26% unemployment.
And we got to remember there in that group.
Is that you know the jobs they're going after using like now -- -- summer they may be seasonal or they're going to be.
Working for restaurants hotels.
You know -- servers waiters or you -- working on fishing boats down on the gulf right.
What they're facing is we got to remember that.
You know the new economy in what's happened with the great -- also affected small business so.
You may have a lot of small business owners that are still in business but their revenues are down.
And so they're not able to hire the seasonal help like they used to -- open for those kids it's particularly tough.
And I think for them again it's you know looking your parents leverage relationships think about who are the people that -- you know.
-- -- -- want to talk to him and say hey dad who you don't get help me out getting an internship or finding some kind of opportunity incentive.
Maybe doing that overseas vacation.
It definitely a question for you do you think -- minimum wage hurts or helps the situation.
You know right now I.
I think that the fact is that the jobs just aren't they here.
I don't know if you're changing minimum wage is really good impact what's going on immediately -- I think you could argue to -- You know economic point but.
The reality is is that the jobs aren't there and we need to find a -- to bring them back because like is said the numbers are actually up slightly from the year ago.
What about speaks to it -- jobless recovery.
So I -- what about the but about the change in health care where everyone's focusing on internships in that intensive set to be -- -- you that the pay a penalty in this and that seems to me like.
These students need -- the get their foot feet -- the door.
And now ladies companies that offer lessons from -- DC -- coming down the road.
Yeah I think that's a great point that that could be very dangerous because you know there is a lot of value in unpaid internships even though I know it can be tough for the kids swallow.
And having to do it and you know it sometimes you take an internship and then -- you take a side job.
You are you take a -- job to pay your way to getting in that to work as if Crist getting in the door is critical and yet there are a lot of ways to get in the door and right Alec has said it so much about how do you create opportunity for yourself.
You've got to find out where are the people that have the opportunities are jobs -- I want how to like get to know them.
Whether it's professional associations whether it's internships and.
There's a great site called internships dot com out there now you know and there's a lot of opportunities ways to go.
You know leverage your relationships and really be open about looking at the different opportunities you have because kids that I -- -- it.
You know -- odds are usually they didn't realize the people that they know because they're relying heavily on their social media.
It's not just that look at the friends and people you don't remember you always know more people than you realize you -- And don't be -- -- to go out and ask.
Ask for help I tell people what you're looking.
Or just a follow up on chris' point do you think that this new Health Care Reform in this whole notion this mandate that small business set to pay wanted fifty employees is part of the reason there's no jobs.
I don't know right now that's the reason that it gets kind of early to tell but the reality is that.
-- whenever you start putting a lot of regulation on small businesses think you really got to be very careful because.
In an economy like this they're barely scraping by you know and I think the more burden you put on them the more challenge they're gonna have.
In generating revenue and let's face to you know when you see a lot of uptick in the stock market -- he has talked about.
Yet there's a disconnect between you know the unemployment numbers and what's going on a Wall Street that's because.
It's not that companies are doing batter if they're cutting overhead.
And that's what's gonna happen when you've got small business if you're hitting them with more taxes and penalties they're gonna cut overhead by reducing the number of staff and that's gonna hurt especially.
Young kids it's.
Doctor Michael Woodward human capital integrated -- there.
Thank you guys so much -- thought there would be good to see him.
You know a when he first started the business he -- and music label in the he told the wash cars and -- all that kind of stuff and that's what he did I mean look.
You're you're just getting out of college you twenty years old you're nineteen years old do you do anything and he and I.
I under I would do anything.
Well and I filed -- -- -- I still have.
Believe you know marks -- -- cubicles from hours of filing.
Does that kind of points and plants not agreed on that screen and that we'll see in my and one and --
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