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Well the funds does that come -- addict and Chris is that everything after that the show.
With -- -- that's a good sign a bad sign what that really means I haven't had hiccups come and knock some somewhere behind them ten you know they have.
They hit it last week I don't really get on that often I don't think it did everything we can't get it might get a mixing it all of it got bush contagion -- Like -- it's like what -- line.
Somebody on the whole world -- if you kind of saw what was the whole thing on the Brady Bunch in -- so Peter -- to stand on his head injury the doctor pepper wasn't that the -- for the pick ups and the doctor -- yes then on your head and injuring about yes.
Get a dot W prefer diet doctor -- you know -- -- the -- noted that much sugar in the soda tax -- I was -- -- -- -- here on sunset.
All we had Mimi Roth on the -- company -- they need those who don't know -- Roth is.
Does it would bush -- -- -- not seen not.
I was -- so the soda tax was certainly the topic of discussion what caught my eye later today did not come up.
But it does involve us than it does involve kids and things like that solo will mention that later on its most it was a fun show if you miss it I feel sorry for it.
-- to be fine life will go on we stood at his market a -- we were down more actually -- were down this morning everyone thought it gonna come and get crashed on Europe.
They pulled they've come up a little bit we get housing numbers though which I gotta tell I don't think they were so great but sales of console.
Unsold homes sales of one you know what I -- you coming into it that.
We're -- that the these pick up that we don't already.
Because of well that percent express credit which act expired on the April 30 and now that it's gone.
Ever unless it's able to get -- in and more than 50% of the sales we saw last month -- first time homebuyers which means there will rally to get that 8000 dollar credit.
And really out there what -- should know that if you don't stay in that -- 53 years -- think back.
-- not -- continues right before temple on it to pay that back that's right here here's the thing I think fifteen minutes as expected that housing dated a candidate suspect we have more -- on Wednesday lights -- data this week.
A bomb to meet soon to see if the focus shifts to -- -- -- I thought this earlier today does it should focus towards the domestic economy away from -- a little bit this week with so much data.
And how how good does that data really at the -- we're talking about housing you -- artificially inflated.
Because of of government stimulus if you will say I -- how much you really take from that to get revised GDP number later in the week.
We get two forms of consumer confidence later in the week get a consumer spending so we get a lot of stuff.
How much weights will invest is put in that data as opposed to still being worried about potential contagion over here.
And it is it all depends on the numbers straight big swing since it's flat flat nobody cares I -- -- Conrad o'clock just from.
RD -- economics and help us out of all this comment thanks for being back -- -- -- -- notes every day.
What do you think -- this market.
But I think he has an important point in the markets are really focus on economic data my greet you on the existing also stated we're still have -- -- that are supported by government programs that people really care about.
What happens once those programs are gone so.
A lot of the reports we get the speaker April reports out of the markets are gonna -- too much attention people more -- more concerned about what is may look like.
After the intensification of that the crisis in Europe and what sort of impact that has in the US so maybe next week.
The data become a little bit more and trusting -- than this week.
That last half hour trading on Friday -- exploded up finish that day up -- 125 points you know for the week we were down 4%.
But I kind of saw that it first law I thought we -- the opposite way so I was surprised that he wanted to be long over the weekend and the second thing is also a little disappointed.
Because I really wanted to flush it all out you know we talked about purging last week let's purge it.
Let's get to that the old rock solid foundation.
Has been -- -- be called a correction I didn't think we got there on Friday because we had that literally -- What we've seen since the in the late April peak I think -- was April 23 was on the market's -- We've seen about 11% pullback and on you know I I I think.
If it's based just on what's going on Europe I think that's a little bit overdone Vietnam we have Greece obviously concerns about Greece decreases to one half percent of European GDP.
If this had become more of a problem -- -- widen out some of the other countries like Portugal and Spain and I feel -- concerned but it seems like the efforts the -- that you use the ECB is sort of prevented that contain content to other countries and so.
We're really justified seeing US stock prices down 11%.
Based on concerns about 2% of European GDP.
And so I think it's the it is going to be important to see what the numbers for -- from may look like once we get the ISM next week we'll get a -- this week but.
Up to this point if we look at that the equivalent of the -- and for the Euro -- Still growing the manufacturing sector growing a little bit slower pace in May than it was in April but the services sector growing faster so -- the -- are still looking okay.
What about though with reasoning are -- selling off solely because of what's going on -- -- in Europe in general.
Is that your opinion if you you said if you think we all -- them are overreacting but are we overreacting to we have worries in this country when our economy are not so much not at least 10% queries.
-- -- in the near term I don't think we have we have -- interesting thing is that US treasury market is getting a significant boost from fiscal issues in Europe.
And we're we're actually on a similar path it's a delayed path and we'll take us longer to get to those 8090% debt to GDP in the funding issues that that -- that that will cause.
But you know it does really make sense for longer term US debt to get a big bid from from fiscal issues.
You know so I don't think that we have near term concerns on the US economy I think that the concerns in the market relate to.
To Greece issue becoming more of a wider European issue and there are also concerns about the that the funding markets we have Libor rates that are creeping higher as well.
And I think there's some concern about about banks and and funding concerns related to the banks in -- Spain -- Portugal at all.
No I would be worried if I thought that the actions haven't contained a problem if if Greece.
Went as far as defaulting for example then I I think the markets have been looked to the next.
Impaired a fiscally impaired countries Spain and Portugal and Ireland and Italy.
But with this this package.
Loan of loans.
And and government funding that the IMF and you have provided.
I would DE CB I'm not saying it's with the ECB is good policy that the ECB is coming in and buying the debt an unspecified numbers.
Of European countries I don't think that the Greece problems are going to spread.
To the other countries to the extent to which the market was concerned about may -- 323 weeks ago so.
You know I think that there's the risk of that is as has been significantly reduced -- did the EU and IMF stepping up.
Accident what happens here what do you see happening here a short term we're okay and what we -- this financial regulation reform coming up I mean it's not like the government's backing off anytime soon.
And we -- a consumer that's pretty shaky.
Well financial regulation important -- -- -- -- -- people are nervous about you know there's been some media reports that that is likely to be significantly watered down once a guest house and I think there's.
If we were to see that that would be something the market would look look upon quite positively I think.
And on the consumer you know let's see what the employment numbers show next week he's implement over the past couple months have actually been pretty good we've seen.
Private payrolls we've got ignore the government payrolls because of the census but private payrolls for the last three months of averaged a 150000 jobs per month.
It's not enough to bring unemployment rate down but it's certainly a lot better than most of us are expecting a few months ago so.
We are starting to -- employment data improve -- that could allow the consumer spending numbers that we've seen for the past several months be more sustained.
-- the employment numbers next week will be really important as if that trend of the first 34 months of this year's is continue.
With that said about the weekly trend -- you know we c.'s meet the numbers -- -- for unfurled the longest time mainly mattered to us but certainly in the last few years have they matter a lot.
And we're seeing them grow 471000.
Last weekly number that can't really bode well for the number we didn't -- we.
-- I -- is -- very disappointing I would point out that the the jobless claims numbers haven't really done a good job we've seen some.
General improvement from the very elevated levels of last year they're still elevated.
Above levels that we would think would give us the type of pride in general numbers that we've been seeing so.
There has it does seem to be a bit of a -- -- the relationship of jobless claims and the employment data another thing that a point out if we look at these.
Multitude of employment related reports.
Within the monthly numbers that are released -- -- the household survey which is painting an even stronger picture employment conditions of the payroll data set.
The payroll that are actually a middle ground between a weaker labor market picture from initial jobless claims and a stronger -- from the house full report.
So we you know if we if we put our weight on payrolls as the markets generally do apparel picture I think is better than what we thought it would be.
And and I think next week's employment report will clearly be something that will be much more important the markets and the data this week.
Kind of -- glass half old and I I think so I -- -- in terms of where the markets are I think that that the 11% decline is in in you glasses is somewhat overdone given that it data that we've been seeing.
And even since we've seen many reports out of Europe that that are really not that bad.
-- I wouldn't be surprised to see a significant slowing in in the US economic data.
Based on concerns related to Europe so very short term this year at least I think that the economy does quite well I think we.
We face some very significant challenges in 2011 with -- with taxes and maybe do it more -- focus on US fiscal issues rather than -- but for 2010 I think we focus on the here and now the economy looks to have some some decent momentum.
-- and the stuff thank you sir my pleasure and honor the quadra senior economist -- RD -- economics telling us how he sees 2010.
And beyond and of course -- a lot of other job numbers two weeks from last Friday that's June 4.
We will get the next.
Non farm payroll report that will obviously be huge Adam Shapiro now joins us from DC let's head on down that way.
And I'm sitting president is -- to -- make a proposal.
That actually sounds like a very positive move.
In terms of cutting spending am -- wrong about this.
No you're you're right but more importantly it is Tracy over the hiccups has she she gotten control of her -- I don't know whether.
And let's look at her and you.
So I -- I was gonna scare her I was gonna scary and bring up the walk if you're upside down in your mortgage debate discussion -- the I'm pretty quickly -- -- -- sorry I need to get.
And I give it would have scared you but I didn't get -- the business at hand right job guys.
I gotta tell you that the administration is proposing something that at least it -- face value if you're -- hawking -- concerned about the huge amounts of spending going on in the United States.
Looks good devil in the details -- have hearings on this time on Wednesday.
But I gotta tell you that the late night comedians on TV you're gonna have a -- -- as they're calling it.
The unnecessary spending active 2010 and if you look at it I guess say it you know you -- say 2010 -- necessary spending I mean.
It's just opening yourself up for all kinds of -- trite but essentially what this is saying is the president.
He doesn't have a line item veto would like to have a line item veto dynamic so that I proposed to congress that they pass the unnecessary spending act when he ten if they do.
The president whenever congress passes a spending bill the president would have 45 days to say I don't like this this this -- this cut it.
He would then send this rescission list their bill.
To the congress which would look at it and say yea or day they would vote upward out on the entire thing they could not -- mandate.
They could remove stuff they like out of it but they could not -- it.
So essentially what the president would be doing is -- line item veto throwing it back to congress and then congress.
Up or down vote if you're old -- -- to remember the base closing commissions back in the 1990s that's kinda how they did it.
Either close all of these -- don't close any of them they'll be differences now congress could remove one or two of the pieces of pork.
That the president would want cut as I said earlier they could still feast on a little bit of bacon.
So that's what's being sent to congress could potentially according to the Office of Management and Budget say billions of dollars but again and -- hearings on this -- -- So I guess it's better than enabling the president to be able to add.
Spending to the bill but it's a little bit but still takes away it still gives him.
Quite a bit of power because does it sort of replaces that line item veto with a line item veto.
-- -- -- It replaces -- line item veto which doesn't exist with a line item veto but the power rests with congressmen and the president suggests that congress would still have the legislative authority to say yes or no on this.
And that you know different people coming out in favor of it Russ Feingold who is a line item -- supporters saying yep this is a good thing John Boehner.
I came out -- he actually said regarding all of this well you know we could do it right now the president was here today is the exact.
If President Obama is truly committed to fiscal responsibility -- use the authority he already has under the law to force congress to vote immediately.
On spending cuts.
Yeah we tried to get there was a conference call this try to get a figure out of oil and be what what how much would tell -- about saving.
There's one figure twenty billion could be several billion.
Nothing official as to what it would say but look it's not the start cutting -- you agree I mean -- the USA 2010 is the unnecessary spending act.
Of the year.
I haven't had to do I not not a comedian I'll keep my day job you know drinking coffee back.
But they actually -- about this they are opening themselves up if for anything all kinds of ridicule with just the name of the bill.
By could be you know if you're worried about -- this could be a step in the right direction.
This decline Groundhog Day.
Groundhog Day -- that -- same thing dividend.
I knew ahead in this -- -- block to block it out so it is -- that gets rid of it up source.
-- -- -- Like hey Tracy White it correctly wasn't Ronald Reagan tried to get a line item veto passed in the 1980s yet but -- Paris that worked out well and then there was and there was legislation.
By the way -- which essentially would have allowed this kind of thing but the Supreme Court struck it down in 1998.
What OMB is saying is the difference between this and a line item veto is with a line item veto the president says nope nope nope and that's that.
We did the -- the president says no no no please remove and congress can either say yeah we'll remove it or.
Thanks -- -- -- that in June period down in DC.
Granting the president yeah or.
-- -- -- legislation how he's gonna says more worthless legislation might add.
Bomb because of the power ultimately lies with congress anyways -- -- -- and went on.
I don't mind telling I don't gonna tell you that things my -- I suppose were were part of what climactic -- and I actually had them.
I'm -- this might be first inning.
-- the prices are now 28 dollars now this is why it caught my -- because -- -- come back aboard should we say Shrek or should we not see checked fortunately for.
So if 3-D sorry -- that movie ticket prices close to twenty ninth hearing -- -- at nineteen dollars as a matter of fact at the 3-D IMAX theaters.
Now again we Madonna and civic association we not they had something they saw the third one they said the second one was lame they went down the rat I don't even happen.
-- twenty dollars four -- -- eighty bucks just to get in the door I -- what popcorn I haven't done anything yet.
I you -- looking at a 150 dollar tab now just to go to a movie that at this point.
Witness the rumors out that check for sucks so I'm kind of an Oxford check back here a -- what did you.
I mean that you're you're exactly right to get that up to twenty dollars.
Well now -- eighty dollars for the tickets and they just -- seventy dollars for popcorn he's in he's in if you if you like them if you're one of the cool mothers which sometimes I'm I just can't say I'm sorry I and the Tebow who hides in -- bag rings in.
But if you get your kid the popcorn Minnesota and the -- that candy you let me finish my preparers apartments -- You look at had another twenty bucks -- at least when Iran's post where I.
Law it's you -- it's stupid money.
For a film that's not even good will that's that's your fault and he paid for a film that isn't any good.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I would not presume anything -- Murphy is done in the last two decades would be funny and today Beverly Hills cop the original that's probably where it ends.
Honestly answer all it did I think it is I'm thinking.
Doctor Doolittle was a funny up clumps that very average he honestly do you think about there where I thought about it it would not accept.
At southern hills not -- drunk drive it to live performance is very good as far as films that will stop after that -- it.
-- -- -- -- -- -- I -- that -- this is dot com live Chris cutter Tracy Byrnes with you I'm still time -- got a good anywhere from moving and we keep looking.
And I -- a -- it's -- expensive -- -- -- know a good.
Anywhere humiliated China even if I lined up not Eddie Murphy hey rich how are you.
And this debate has reached the shores of China so.
I'm you know he's -- are Buckley was a better.
Character played by America in the -- -- -- -- so hopefully Chinese officials will address that tomorrow and everything it -- -- Eddie Murphy.
It was probably it -- but we got shot I don't know if he gets like ten no better sticks on satellite.
There's a lot more important things this is -- yeah this is probably third on the Geithner and us Secretary Clinton and the folks there in China behind what's going on in Korea right now.
And the that currency issue I would imagine probably right.
Right yeah its sovereign debt and it's currency and its buckwheat and it got hit anything -- to kind of let.
If it -- seriously currency has has really been the issue at least for exporters in the United States and and certainly for lawmakers who have seen -- number they're exporting jobs come over here in China.
Though companies like Wal-Mart target certainly aren't complaining when they can take cheap goods items from China and then sell them -- -- there are industries.
They -- gain in there are industries that lose out from China having a currency that's that's been pegged to the dollar and really hasn't risen.
In a few years so that's something the Treasury Secretary Tim Geithner has been pressing today -- Chinese president said.
He will allow perhaps a mechanism.
To move forward when it comes to an appreciation -- Chinese currency didn't signal a time didn't signal an amount that perhaps the currency be allowed to.
To rise in Treasury Secretary Tim Geithner is really giving states the Chinese to allow the currency to appreciate beyond that.
Both China United States had complaints of one another about allowing.
Businesses in China to operate in the United States.
Businesses from the United States operating here in China exporters.
Exporting goods from the United States -- -- China so those are issues that were discussed as well today they're not looking in the next couple of days.
Come up with answers to all of these problems are meeting again.
In the G-20 next month and will continue discussions there another thing we're also looking at guys is the Chinese -- really hit the Americans really hard.
On the debt problem one in the US to get the fiscal deficits in order.
And that's something Treasury Secretary Geithner at least publicly didn't have much -- say on it kicking the -- that fiscal debt commission the president's point in.
-- and have much authority.
It's here interviewing -- junior secretary Tim Geithner later on today right actually I I don't know where you are -- the time zone goes.
What time is it by you because everytime I see you it's dark keyboard thing you're up like all night long work and perhaps.
Yeah -- sell its -- actually Wednesday so yeah.
On Wednesday and that's what it's Tuesday it's Tuesday it's in order to their Lotto numbers call me a letter.
Yet what -- being with -- secretary Tim Geithner and about twelve hours and then around 5:30.
Tuesday eastern daylight time.
Is when that interview will air so looking forward to speaking with the Treasury Secretary.
Senior we -- -- Secretary Clinton leading the delegation here in the US allegations about 200 officials strong as a pretty strong US president at a time guys in the US -- China growing.
It's about 12:25.
AM and there's a construction crew.
Putting building up right across the street for myself and -- done on of the neighbors and.
Playing well I'm guessing they're not getting double time -- labor union wages for doing that either rich thanks man if don't think so -- -- got to gets -- Beijing of course as you mentioned going to be speaking with such interceptors on Geithner.
Later on and it's very important in this the whole -- situation the currency situation some economists needs to do think that that's the most important thing.
That this administration can do in terms of helping our economy get that situation straight -- get our trade.
-- -- worked out with China and get a -- we can just trusts and understand what's going on over there.
There have been -- -- chairman of the board of mortgage success source here -- the embassy again very good thank you what do you make note certain we got big week for house are so -- I would today.
You can you make heads or tails out of this existing home sales number today given the fact that we have so much you know government stimulus involved in that number are you waiting until the summer.
Boy you have to really cattle that left.
Kind of but at several event here because people rushed to get in before.
The tax credits expired you got interest rates that are this is this is an unbelievable -- should be a lot higher we've got so much.
Noise in this in the rates right now with situation in Europe creating.
A flood of dollars both domestic and abroad coming into the bond market and -- that's filtering into mortgage backed securities.
Which -- pushed rates now.
Below 5% you know you just heard what we don't have our our debt structure here in the US in order rates should be a lot higher here that we talk about China as well.
The you really want to it to.
Of those dollars coming back here is the purchasing of securities including.
Treasuries a lot of that in treasuries and mortgage backed securities which helps keep our rates slow do we really want to.
Decouple that's -- by a little bit less of that yes sure that allows there.
You want to float a little bit more independently but that means that we be paying a higher rate of interest on that stuff too so we got to be careful we wish wish for there.
So let's not what's the state of the -- in housing market because the way I mean.
Where we -- we get these statistics.
Mortgage applications are down inventories are up okay short rates are low but.
-- want to get involved in this process could they just believe they can't get the money so even if the rate rates could be 2% if I'm scared to go into bank and -- for a mortgage that does me no good does -- To be scared of it's just like common sense Connell and it's like old fashioned lending to continue qualify for a loan.
Can you pay the darn loan back -- have reasonably good credit will then yeah you can get a mortgage and can come up with a down payment.
Of in most cases three and a half percent which is an FHA loan.
Yeah you can get a mortgage so.
It's a common sense.
So right when billion we are we actually are where we're people come on and I hear this whole -- you can't -- -- he can't he can't get the crazy landing -- he had.
No income verification.
Yet you can't get those anymore those clog up the -- -- hundred LTV look you can't get that but reasonable lending standards which is healthy which is a good thing.
Absolutely you can get that now state of the housing market.
What it's it's one -- OK this is a market that first off you could drive fifty miles in one direction housing market fifty miles and another.
It's gonna be two different marketplaces sand states are going to have a tough time still because.
They were over inflated they're still groping for a bottom they don't know where the bottom isn't any time you have that's a tough time.
If it's gonna go house by house -- the market's going to be very dependent on can you get a good deal on this home.
If you have the time.
To be in this home for seven years ten years you'll probably be able to get a good deal on this home.
And realize that if you're looking to buy a home now flip it in six months and say -- -- one of one of making a windfall.
That's a dangerous game to play but if you're going to be looking to purchase -- home and lived there for a long time raise a family there or spent a lot of time that.
Chances and it's a very good time low rate environment to do yourself -- just.
The saints it's business -- -- gonna lead us out a little bit and getting to be leading indicators was Las Vegas because they've gone so far down.
Bounces up and NBC it.
Well you know that that's a tough call to me because -- depends on the on the economy of those individual states you know is is you know when you talk about Arizona when you talk about Florida when you talk about Nevada when you talk about.
That the economies of those individual states and there.
There employment situations they're gonna be different and and some of them are gonna gonna gonna have different -- developments.
-- -- gonna deaths earlier or later than others.
It's it's hard to say there's also greater problems with inventory foreclosures and some of those states compared to others I think it's a very individual -- it's always been really local.
So you have to look at these opportunities and I think that that's what it is I think the real estate market right now is.
It's a market of opportunity yeah and if you look at it and say it's going to be trying blanket all on one.
It could be a mistake if you look at it as individual you -- careful picker of these opportunities you could be very handsomely reward.
Did it help or hurt the situation.
But -- government tried to step in and and and stabilize the situation so if you took a look -- -- symbol the market's kind of in triage.
Tried to help it stabilize but I think the government had a lot to do to put us in this situation and it was really stupid for the government facilities everybody should be a homeowner right.
And that was a long time coming a lot of decades of -- our goal is total homeownership was just really foolish.
And had to try and say that that's our goal and to push.
Higher and higher.
Loan to values higher and higher.
Credit acceptance ratios was just foolish and that put us into this crazy spiral and you know I know that mortgage professionals get a black guy.
But the truth of the matter is while there were certainly bad actors a lot of the mortgage professionals.
Really -- a tough spot because they were handed products that credit rating agencies would still somehow to this today I don't know how they have speed skated here this thing.
I think illicitly -- whether they're probably hide in some quarters they have they still haven't found out I knew that we are the ones that caused the bulk of this problem.
-- -- all bless this thing it's that this is all AAA right so now the mortgage for special has this piece of favorites is OK I can give me this mortgage customers is I want it.
Everybody wants this off because they think the house is gonna go up 30000 dollars next month right so I want the mortgage because I wanna make this rich windfall that everybody else is making.
And it's again this mortgage if the mortgage professionals at what I don't think he should have it.
That person can go to jail for discrimination right and if they give a -- and now they're the bad guy and now they're getting over regulated.
Again I'm not saying that every mortgage professional was an Angel we know there are a lot opportunist bad -- okay.
But there's a lot of blame to be spread around here and unfortunately it's all -- point to do.
One area Colby and over regulated one area what about foreclosures last week boy -- we have some terrible news on foreclosures a look at the housing market from the other side not those trying to buy a house -- those trying to stay in a house.
How much where's that gonna get it is that shadow inventory really -- yell is that really gonna.
Rear its ugly head later if it's there it's not -- rear its ugly head in one.
Because here's what happens if you're the bank.
You can't afford to put these things on the market so if you're sitting in a foreclosure now believe it or not.
It's almost kind of in -- in a weird way a good thing for you as the bank can't afford to foreclose and take the loss what that does is on its books it affects its capital ratios.
So what the bank account I have to do -- kick the can down the road a little bit and -- It's easier for us to take the monthly payment losses in little bite sized chunks.
Because we can take that against earnings and survive that way a little bit.
And bide our time kick the can down the road hope the housing market comes back but it puts a big big losses on these things.
It'll hurt our capital ratios and then when we got to do well then we got to try and figure out how to sell off loans because -- we have exceeded our capital ratios give back depositors money.
It's an ugly situation so it makes it tricky.
-- quickly talk about rock of -- you produce.
Rock of -- great show five Tony -- nominations you just open didn't.
We just opened in Toronto so cool what we're going on tour thank you for bringing that up we're very very excited about it and you know you brought up going distract him and going to the movies.
-- for probably.
Similar price of that and to take you kids had a great time.
-- I don't know -- similar price of that well you always feel this is just no attention to first.
We've we've got some great -- yeah.
And -- yeah yeah you get a ticket or even -- the -- -- go you go there and you know if you mentioned boxing get a great deal pension fox elements -- bury.
I've OK I like that.
I didn't wagons mortgage success -- and of course -- to have the -- let me -- thank thank you can thank you -- I'm sure you guys make me come back tossed hand it's -- how to make money -- -- there were only down six feet.
About that for being in glass half full vehement.
But does that -- -- -- -- is kind of really down nine points on the Dow right now could be hours it was a -- ours and we start this morning.
-- -- -- -- go with us this morning he's here is now.
-- It's isn't it markets hit me.
-- heads or tails of let alone money does not -- -- -- control.
Yeah it's it's hard.
In some ways though you look back on it like what we look back on this three months six months forensic Cali we should have been buying right there because you know in retrospect we always kind of do that.
But where -- and I had to die of the stuff.
Right in the midst of it is very very hard you know the tough job for me right now -- his.
Holding people's hands and letting us know -- all some really good quality names.
You know you gonna be okay.
Discipline it's about discipline right now Charles hang with a -- wanna get you've you've budget that you need basic about the -- that and I.
I'm talking that tells rises up fix it and that's because -- happens at the play by ability itself with moving.
Atlanta now -- didn't -- -- my Shrek theme I went with DreamWorks Animation Shrek.
-- after this is the fourth installment was miserable and of course the stock in Downey came in its -- one point three million.
Sales will fell below expectations on the -- -- -- -- to stop that down with it.
High expectations on.
Really tough to sell that well let's double the floor I know so many films and blowing them out you know hit and -- apart in -- you deal with the fourth one in the summer that's full of sequels and editing and he's tough to meet expectations.
-- -- come panicky was avatar and things like that I mean I think you're expecting that that the viewer wants all this media stuff but -- that make a good movie you can't just have a donkey coming.
Citigroup big mover today Goldman Sachs made some changes -- that the ratings and -- financial stocks city got an upgrade.
Big one actually.
And a lot of the others -- cut so Citigroup was raised to buy from neutral but Wells Fargo cut -- America but the insurers as well so.
But analysts movements come at a Goldman Sachs today moved those stocks Sprint Nextel.
We SP 500 leader.
Gold attacks against upgraded back believe -- -- not to a buy from neutral.
Predicting that the customer -- issues get better for the simple reason well there's your -- includes.
If they had and I saw as a reason to buy the -- how exactly.
Out of 6% earlier.
-- restaurants up about 10% earlier this is Rainforest Cafe.
The chart house -- action and then man -- scrabble those places the chief executive.
In them -- the company so current.
I think that's do you get a little premium on the amendment but what about 20000 share one point four billion I think that's pretty cool that -- cheap CEO thinks that we'll invite.
An Odyssey Healthcare is going to be purchased has agreed -- Gentiva Health Services agreed to acquire Odyssey Healthcare.
For about a billion dollars -- -- actually creates the largest US home health and hospice provider which is huge going forward actually.
I'm not think that -- -- with 27.
I -- stock was above 276.
Years ago that's a decent.
Moon does a very bearish market movers because we went from being down eight points to be -- 25 points -- attending -- don't want the -- knows it's in the -- -- -- this up nice today that's an.
Really know it's a good deal on that when that require examined first yes great point.
It's also -- -- like right now -- daylight today so hard to be able to pick -- because we're just all over the place.
Yeah you gotta either be two things you you have to be an investor or really really extremely -- we know most people aren't that nimble.
Fill -- the markets oversold until and then you know you can look for some of these quality names I.
It's China sticking out to me today because it is extremely oversold.
I think that market may come back a little bit.
And just think -- just some incredible names out -- it just.
You know it -- the exact moment when they're gonna turn -- that we're gonna break out.
Now you hear talk a bit of a double dip coming again -- not so sure that's gonna happen but you know we know really talked you know we talked about a lot of Friday.
That mass layoff report on Friday yes.
And that was scary stuff that you know we we we saw some the worst Summers going back to September July of last year.
Yeah that that kind of stuff does make you wonder.
-- what where exactly we are with the economy.
You Arab Roubini was on Imus this morning's on the green room.
Did -- -- his number got to talk to sit back and I.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- To his point we're looking at -- thirteen trillion dollar national back right we got.
-- budget deficit trillion I mean you name it the numbers are huge and we're not stopping and so things keep going he's -- get where he say in.
Not gonna -- out pretty for the next yeah.
-- -- so you have got -- jealous.
This guy because he gets to make a prediction and if it comes true five years later he's a hero you know I think I must have got -- work -- like every 24 hours yeah that's that's what -- Yeah several good -- -- yes I know the market housing market is gonna blow the deadly puts that's what the cast -- get anyway.
Doom and gloom is to a certain extend to be hard to ignore that I think that's what people have to fill -- it didn't you know I think we we we.
You know when you talk about this -- buying his own company CEO.
One of the things I didn't see this whole time is inside of -- -- I mean that's that's kind of weird you know does courses hold a rally had no volume -- conviction that we saw quickly came down because they're there weren't any.
The buyers and ran it were really fleeting and though they were in it to make money derided trend as soon as a trend look like it's gonna break.
They disappeared so that kind of vulnerability is scary.
You know Joey Atlanta wrote this it's sort of goes along with what people been doing over the last the -- -- -- planning for the worst relating to Euro debt.
And -- pressure in other words.
People buying treasuries I mean give putting their money there or gold with gold to had a bad week last week -- -- -- back up today but that's people.
And getting rid of all risk in doing what is that -- -- your match.
Seriously that's got bow yes remember -- irrational exuberance speech that was 2006.
The market was irrational for another four years not trying to pinpoint win the disaster is gonna come.
You know we need -- type thing -- wouldn't -- -- in the hip.
And so on people to say I want to just park it.
And I saw how many people -- -- -- last year because of the same mentality I mean.
For February march a lesser people sold fifty billion dollars with equities they sold well they should have been buying.
The top and me we're not talked about this before that -- -- money you and I slowly come back with so much of that is still on the sidelines they're gonna miss it again -- nervous -- they're gonna miss again that you're.
-- -- -- -- -- diversified right now -- divest our subscribers -- 20% cash.
We had asked the S trade on which was a huge when I sold it early last week sorted Wednesday took profits.
We do have the X that's -- is it played and again another plate 22 volatility in fear.
But I've I've asked him to be 20% -- cash.
Hold the quality stuff we've got a lot of stuff that -- -- that gets us you know smaller things most of the tech stocks are still up pretty good but.
I'm looking -- my weakness I just don't know win I just don't want and I don't wanna be early especially when you build an individual we have a minute let you guys who rely on three names today goes over defied an F.
5 Networks networking data storage.
I just think this is a company it's got its act together and now all of that taxpayers be by now -- -- Well while I.
I would you know someone has a role for one K I would put -- forward to tune in have a look -- the -- tomorrow you know I don't know.
An -- -- wireless and you listen.
We know you let the wireless base in the interest of time I want to hop to Dover court this is an interesting one -- because it's.
May -- industrial so you still making a play on -- country on global.
Still while still on the on a rebound in in the country in other words in and I -- is I'm I'm conflicted a little bit because we talk about mass layoffs a lot of hours into manufacturing.
But still I think it have been if we can get.
That's the only area -- that I see.
And I have seen these guys executing a little bit better again remember it that's -- -- people pulled back for a couple years so a lot of these companies have held back a major purchases.
Of some of these things some of these fluid control products and these engineering to control systems that this this is stuff so like the computer industry were large corporations.
Have not make purchases and in this area in a long time we'll.
And suing when people -- -- companies announced layoffs.
On a small money they can use for capital equipment down the road -- Productivity miracle drug you know what that temple equipment thing I'm telling Chris when you see that go up I think that's the ultimate -- -- we see -- significantly yeah.
Have been seeing actually capex spending increase slightly slightly.
Live at that time Nancy -- I'm -- -- all right how do you motivate your prediction come back five years absolutely years later from them brag about it and guys at the time bad I.
-- And national government.
Jealousy does this -- -- to.
Okay not just see that's his picks and it's more about social life well we'll talk about that live.
But when a lot of things loaded -- -- the equipment will be right back them.
Yes and I'm not now.
Back Fox Business back on line treatments this Qaeda were down 32 points that's better isn't it there was no no it's worse it's worse -- I love of his -- we tax saving for retirement these days because who had no is that it do it.
You know we don't want to live in refrigerator box they got to save some than but it does seem -- had a what do you say because the numbers are staggering.
Thankfully Steve -- is here with us consultant with Mercer and author of recession.
Your retirement savings.
It's hard -- -- calculators on the web and you putting your current lifestyle.
But you know did you really thinking doing the -- -- that number comes up like four million trillion dollars that you need to see between now retirement.
And Tracy that's right today it is hard.
But that's where at least do the numbers a lot of people don't even do the numbers and so they have no clue.
As to what commemorative right and tell -- the first thing you do is say is -- -- on the calculators and do a number.
Then you start after start thinking about all right I don't have the 1000000 dollars what am I gonna do.
One of the things that you know it's it's not a part of your ten sets the retirement security but it it would -- be the eleventh one thing you always hear this -- start.
Right away because that's the one thing you know college kids 20/20 three years old.
First time it really ever had some money.
They feel all all all put some money whether it's in an IRA whether it's in my 401K whatever the case may be later and I'm sure you would tell -- we've heard so many times.
-- even if it's a little bit put some -- I couldn't agree more enact some -- -- my daughter who's here.
She's saving about 20% of -- pay -- 23 years old and she is listening to dead thank you.
But what would you recommend though -- 1% -- is a little.
Instead congratulations -- that's a little bit more than probably most can put him and what would you say this is -- this is at least with you should.
You if you're starting in your twenties or thirties and -- could -- five or 10% of your pay.
You'll be really set by time you get to your fifties or sixties.
William -- I mean because again you do the calculations.
And the numbers are so big it's almost daunting to the point we just say I'm never gonna hit that number some -- enough.
And a lot of people have their reaction and it's understandable but we don't have any thing you'll have zero dollars fat and so.
One -- people need to think about is having a different concept of retirement.
What our parents our grandparents they didn't work at all -- cruises that play golf they basically play for twenty or thirty years.
That's not gonna happen for my generation or my daughter's generation we're going to have to work in some way shape or form.
And so that's where encourage people do -- start thinking about work that you really want to do.
In your later years the right amount of work to work your butt off to work too hard.
Do the kind of work you like to do and if you can do that you could actually do -- -- seven easier easier ninety's I've met lots of people are doing that and they're thriving.
You know I saw a couple things you ten steps to be -- -- one of -- -- take care of your health.
And another one was develop a robust social portfolio.
Which I have done but I would think that that has been to the detriment of my health did that and -- social port 25 -- they that.
Any -- -- what I don't understand the social portfolio what does that mean a robust social put forward.
That's really important in your later years you know when you're younger you've got lots of friends and that's good but when you get older.
Your friends are dying.
Women become -- that's a typical issue.
The more social -- you have more friends and family who were there -- interact with take care -- you.
-- you if you talk about problems.
There are a lot of studies that actually shows such people have the network are living longer -- -- here.
They've got power for reasons for getting up in the morning and that becomes really important when did you and your seventies and -- -- nine.
-- and attends that it's not just about financial well being it's about physical well being as well and sort of how -- -- -- together.
If you just look at the financial solutions you're gonna come up short as you talked about it requires millions of dollars.
And so you need to have solutions beyond the financial any difference.
Maybe you share housing golden girls can come back.
That we've talked about that show and I was funny at the time vaccine that's a realistic solution for lots of people on their sixties and seventies.
I think really I love though the notion of almost reinventing yourself later on -- crew that you want to do your entire life do it now.
Didn't think think along those terms right.
Anything I think that's really important is to you know to what you're saying we're seeing a lot more of these that assisted living communities where they have all the stuff going on.
He keeps your brain young as well -- -- these people but that being said.
I'm healthier I'm so so -- a little longer snipe at him for more years of life so that's just -- means my dollar has the last not much longer so what do I do it.
Well he you got back to reinventing yourself.
And that really is the key because if you're going to be not working and not have a -- -- for twenty or thirty years that's a lot of money.
Yeah so yeah I did OK I'm not gonna.
Not work for twenty or thirty years and so I do need to reinvent myself.
And -- like to think about it -- -- think about when you are graduating from college.
Not all these options available to -- And so the -- of the world was -- your footsteps.
-- -- -- -- -- Well not you're in your fifties or sixties and early in the same boat there lots of options but you've got a whole lifetime experience mountain and so.
Why not reinvent yourself and that reinvention herself actually keep you alive and keep your brain active you'll have money coming in it's actually the way to go.
Because we just can't live on financial resources alone for -- twenty or thirty year period we've got to have some money coming in on wages.
Earlier today on -- company were talking about Oprah Winfrey now hiring you know her own sort of personal teens manage her wealth.
So her time and this is a taking care of -- she can afford a higher professional team I -- what are your -- with.
To build a professional team all -- -- -- and Oprah Winfrey can afford to go out there and build a dream team around again set for a time.
And you're exactly right but we really don't need a dream team like Oprah Winfrey's you know.
My -- most Americans can use mutual funds.
That's a great way to get low cost professional money management experience -- find -- good tax person.
Coach where -- it's a trainer or nurse practitioner doctor.
Those are all people ought -- include in your team then.
But insurance agent that you trust.
That's a big part because you'll meet some kind of insurance to those are the kinds of folks some talk about.
I think that.
It's because of where we are with the market it's down it scares people about much more what do you telling people these days.
We -- but a lot of volatility in the market they're scared -- -- housing bills that probably dipped into their 401K to help pay their mortgage.
-- clearly gonna say it's never too late star.
You're right -- members who -- at the start and actually you can think of widows of the market's down stocks are on sale.
And so it's a hard thing to convince yourself to buy when the markets down that's actually the right time but.
But the other thing to pay attention to is.
If you just stay invested.
And hang in there for the long term have a investor's point of view a twenty or thirty your point of view rather than the next day -- -- -- next -- point of view.
It comes back and acts have seen analyses I've performed one myself is that.
People who -- in a balanced.
Allocation between stocks and bonds are almost back to where they were before the -- Steve good to see that I was scared Steve -- consultant with Mercer he's also the author of recession proof your retirement years simple it's -- planning strategies that work through thick or thin.
Golden girls to like conceded I love that idea you dig in Sandra Smith taking the way I -- Arthur and Betty White.
When -- -- watch that candidate light went -- you knew every one and he wanted to -- the senate seat you have vessel black to with a bad.
But for small business spotlight right now let's go to shot -- an owner of cafe how bottom I joins us from Los.
Even though he is in New York here that's true it was hard -- -- John.
I'm feeling good how you -- good apple how's that new -- doing in LA.
Not bad not bad I missed the game last night so it -- sad about that I was on the plane getting out here but.
Glad to be in -- layups on my yankees.
-- -- a bad that this is a concept that you started here in New York to restaurants here in new York and you bring it out to the West Coast.
People ask us all the time we're actually involving conversations what does that mean to be green was -- need to be echo friendly will you have a concept that seems to be working don't -- Luckily yes very much so I mean we started maybe a little bit ahead of the curve in Brooklyn and then things really picked up there and when we -- in Brooklyn which -- have a solar powered restaurant and luckily it's an outdoor spot and so the solar panels you can actually see from the street.
And we wanna put them up there was kind of a peak and other environmentalists and it just started coming -- -- with other -- -- information.
I kind of just caught the fever and has been snowballing since that.
What is some things that you do to be.
Eco friendly now.
My understanding you get like power blender with a -- can that you drive a car that's powered by excess cooking while at -- -- -- They're not a 100% to one of the things I think that we're doing that makes -- special and it's kind of infectious.
Is that we're really kind of fun we're trying to do the right thing but the same time so trying to have a good time.
And I think that's one of the beauties of of the restaurants in new York and that's what trying to bring out here to Malibu.
-- for instance like Ivan -- I love big old American cause always had -- environment forgot about riding around in a big gas -- 1970 Cadillac convertible.
Wasn't a good look some look -- I do and and I I got in 1965 Lincoln Continental kind of like the one they use on -- to -- But that's I re converted -- -- -- on the front trial from the restaurant system that you did he waste product it cost me money to get -- -- I'm not get thirty miles of the gallon running it.
With -- that's the big question because it whether it's you know.
Fueling a restaurant a 65 Lincoln Continental or trying to provide powered through Las Vegas Louis thought about how expensive this is going to be too expensive.
What is your experience in terms of the cost for -- -- -- -- convert your restaurant your car and everything else to be able to run on.
Solar power and things like that.
There's no question that some of these initiatives -- very expense especially up front in the beginning.
Luckily I'm in a position where I can really look at it for five years out six years out.
And hope for the payoff when it comes down will it make sense to me yes it well I'm look at to work -- have a longer paradigm.
That a lot of other people were just renting a place they don't own it it might be a little bit harder but for me.
Let's talk to a always thinking bottom line bottom line that's the expense is also something good about riding around in a car that smells like French -- -- you're going down the street making people smile she knowingly doing the right thing so.
There is value in that there's no question to it.
I love that OK say you're in Brooklyn out here in New York.
Is that if you plan to come to Manhattan.
No I mean I'm in Manhattan -- well I started in Manhattan then open up -- and I was with a -- that.
Yet -- of the stadium and hit a bad I don't decide exactly Brooklyn a guy sit still well.
What's -- play an expansion plan that we can keep going with this.
I hope so.
Yet please everybody not -- expand try to make it big I really feel like.
Like we're doing because it is fun because people -- have a good time it's much easier capture hearts and minds that way -- kind of like stand over them smelling like Pachulia and a lab -- telling people how they how they should -- people don't really wanna hear that.
They -- they eat a meal work good value.
Kind of a mid level restaurant for some people Islam leading ethnic food other people -- where you take your date on a Friday night.
But everybody comes -- then they feel comfortable.
And then they start understanding other things that we're doing and it -- it just makes them excited and makes a wanna go and tried to do other things at least maybe think about things and a different way.
So on we talk to branch has done it before it's me this is right for franchising have you thought about that it on him.
You know do you think that -- on the line.
-- would -- my choice really was to open up more locations in New York ordered try to come up to the West Coast and try to become a national brand so.
Please spread the word for me.
Want to -- that kind of that thing could have let it may happen.
They -- and obviously converting an active -- obviously finding a 65 -- got out but then converting it.
To run not -- French soil is probably pretty difficult -- -- something that's really easy.
That anybody wants any type of an establishment whether it's a restaurant a store you know home with something that they can do to be a little bit more environmentally friendly.
Well I think some of the things that you can do like I mean the most obvious it just changing your light bulbs that alone I mean we're solar -- really lucky to do that but especially that -- -- in New York where it's hard to elect.
Call up your landlord be like I think you should install solar panels on the -- he's going to be like.
Yeah right sure.
But -- -- does -- mean that you can't go -- by the compact fluorescent put them in your home and it really makes a huge difference.
And I think I think the other thing that people should realize is that sometimes they feel like.
All about -- do the right there on the become an environmentalist I have to lose some fun in my life it's gonna be too expensive it's going to be -- some.
And I think what we're trying to show with knowledge doesn't need to be out at all but I'm cruising around in a big -- caught having a lot of fun.
And people about why -- -- like that and you explain it to me like that's crazy and it gets kind of makes them happy.
And Nam so I think there's things that a lot of people can do in small ways just by changing little things that do to recycle.
To do a -- it's not really big deal -- -- and actually make you feel good if you're doing it.
Shot it you seem to have fun -- -- and I know you're very charitable and Philanthropic you sit on the board for the Greenwich Village youth council he wrote it children's book and but she also did this have banning girls count on there and I presume the profits go to.
Absolutely I would expect it should it greens can be sexy Sheila and no I haven't abandoned -- -- It's all of that though it's mostly the women who have either worked in a restaurant previously are working there now it was an idea we all came up with your like all that's doing it sounds like fun so we try to get everybody involved and go shoot it.
Saw it seems like it'll be it but the navy and as tough -- sell.
In Brooklyn as it would be -- any city in America city you do in Brooklyn it seems to like Malibu in -- and Southern California.
It would be a fait accompli that -- succeed.
-- -- you feel that way the -- improving yourself in the toughest proving ground of all time.
If you take this thing nationally.
I think so I mean frankly -- to his right you know you make it day make it anywhere I really think that's the truth.
And there is something too about Brooklyn I think it's really unique and was a great place were to happen.
It's actually one out of three people that are in Brooklyn were born somewhere else -- Literally the whole world is in New York in -- in Brooklyn especially all the one place.
And went downtown Brooklyn so we're near the mall the DMV so there's a reason almost everybody who lives in Brooklyn have to go downtown and you can't miss the big green fences that says have that I'll.
Well here and go slow hoping you and you typically get out of the ages I'm telling you think franchises there -- an owner of cafe -- -- -- on LA.
But -- Brooklyn again new Yorker at heart and makes you realize that thing.
There can't say that I did that media -- -- outpost as well I wanna that'll -- and you.
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