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But at fox news's fax com live -- he -- this kind of shaking his head irony it's okay it's what it's what he does market is -- 150 points on the -- that is it -- -- -- -- -- it was a lot -- earlier today actually so 150s it's actually good thing.
We're definitely well below that.
101000 mark that a lot of people liked the liked us hovering app for awhile we got a lot going on and you know talked and if -- -- repeatedly get treated -- as to why this market's down we have certainly Euro zone issues again.
We heard from Spain overnight actually this main index the -- was down a lot again.
Spain of course have a debt issues as well -- still going on.
You're still of course being a focus of attention there is it crazy old north Koreans they -- -- -- -- -- last night.
We heard from them and back -- we got financial reform gone on is it gonna happen what you gonna do to financial stocks.
-- indication number which wasn't so good either home prices are down yet again in that.
Of the twenty regions they tack six were actually -- -- -- down the most down by about four.
Yeah that makes sense San Diego up the most right is that they are up get up 14% -- -- -- -- -- -- but that's you know consumer confidence number we got -- really -- -- so that the conference board but.
I just think -- that -- doesn't matter I mean unless these numbers come in ridiculously high.
I just think we're in this selling -- -- we're not going to get done selling and so we've reached a bottom you know we reached a bottom march 2009 and then -- -- in financial Armageddon at that point time.
I don't think we're gonna -- -- pricing and financial Armageddon but.
I think we're pricing in future -- hardship based on what's going on in Europe right now.
And as he -- and had talked to a lot of guests today that are gonna have an opinion one way or another about it but that's ready we're doing.
We thought we were gonna have slow growth coming out of this recession and we are but I think it's what people are seeing it now being slower than we originally thought that we thought even two months ago.
I heard some of this morning say that the market is showing very similar signs to.
Late 2007 do you think that -- and not to say that the banks are now all out and it's going to be awful again but just that whole.
-- coming apart the -- it probably will at some point just completely rip apart.
Well then -- head philosophic get a few favorite thing about late 2007.
We had a pretty steady rebound in the early part of 2008 really leading -- -- the summer of 2008 late summer 2008.
That's when we started to get a little jittery and then of course in September we know the bottom fell out.
But we -- -- we had a nice little rebound in the first part of 2008.
Following what really was the beginning of the recession.
-- -- -- joins us right now president of the smaller group joins us from bad news Louisiana.
Steve what do you make of the absolute although almost you know.
It's been ridiculous and -- how much we've been up and down how much volatility and need to drop eighty points on the Dow on fifteen minutes yesterday at the close.
Have you had -- you stomach this market.
I think we've got a lot of fundamentals that did darn -- being that we.
Starting last October there was big talk of the new bull market the new bull market -- -- -- was jumping on the bandwagon.
And really if you if you talk to people and I talked to people all over the country on a regular basis.
You didn't feel that that there was really any confidence in there that the market was being traded up.
And we peaked at over 111000 and then it's is just Katie bar the door.
Fact I was saying earlier that I thought the 111000 mark was going to be the new 101000 but.
We can't get out of 101000 it's just it's scary times and were very tightly integrated as the world economy.
What worries you the most though is it inflation is it financial reform here at home is -- the Euro -- What keeps up that night them or is it all of it.
It it's -- -- side I just feel that there's so many different components to this in in here in this country.
We as a people don't have any real place to hang our hat we've got so many things up in the air.
Nothing is nothing has come full circle none of these initiatives that that are out there.
I believe truly that if they could've passed cap and trade.
They would have done it by now which -- would have been another disaster so were still looking at the very aggressive policy.
Schedule for this administration.
We're just lucky in my opinion that these other things are popping up slowing it down a little bit but I I really again is of people I think we don't see any firm -- thing.
Will that be a turning point in your mind -- mean if if enough seats -- gain by.
Next to do in this election cycle I mean is that when you might say you know what I think it myself and a lot of those immediate -- Do you know yes in the united -- into a political conversation but unfortunately politicize every single bit of the economy and everything else going on from jobs you name it.
Yes I think of November comes out strong.
I think we will get a surge of confidence.
And we're back in the control.
I think capitalism.
May be gets to rear its head again.
Perhaps we'll get into.
Into some old policies back when Reagan was here that that really spur the economy to get get moving.
And perhaps will be thought of as a as a strong country again.
-- -- -- it's cracked me up because we generally always ask our market guess what they like and dislike and you're on -- dislikes list it's the market at the home of the big old blanket statement.
Does that -- in -- -- in cash.
If were in cash were staying there written.
If we were in the market we have pulled out.
What we've gone in two.
Mid caps we've also gone into some hard assets.
I think we need to wait this out zero return is not acceptable so we'd like to generate some income.
And -- we could generate some income.
In in a written.
In an area that doesn't have a lot of volatility that we're pretty happy.
I liken it more today though and they'll be getting to a point where it -- -- you're gonna start nibbling a little bit because predict close to 50% from the drop going back to April 23 so.
You -- like the price.
-- on some of these stocks.
Well you know you.
If you like them last year they looked intractable look -- we -- today.
If it's my clients are between the ages of 55 and in 65 typically getting -- -- retired or retired.
And there's three things they want predictability.
Some type of of of consistency.
And right now boredom -- and that the excitement spend too much.
If we would've listened to all the Talking Heads back in October and plowed into the market we'd be down another 10% right now.
After we got annihilated 40%.
-- I'm just not sold on the market right now I we've got tax reform coming -- now whether it hits in 2011 or not.
As anybody's guess but I think it probably will.
That's gonna take a good -- and I GDP again in my opinion and so.
Income generating assets.
If we're looking at this initiative with -- global warming and alternative energy things of that nature then.
And I've mentioned this before I like the transportation of natural gas it seems to me that.
That's the slant that's been taken especially when you look look here in Louisiana we've got this oil spill.
It's gonna wipe out the economy in Louisiana.
Another issue with the federal government we want to sit -- examine all these ways of stemming the flow of oil and in my opinion try anything that works and try it now.
So I think that natural gas will be an opportunity.
To look at in a large scale basis coming down the road so.
We're ahead of -- recovery clearly right now.
If we recover we'll start using more natural gas and -- we get paid for that great right now he's a good dividend.
And I'm talking about specifically the pipelines Newton while they're paying good dividends they've got some some potentially nice tax benefit.
Say -- -- to chris' point earlier we're about 11% off our highs back in April.
You saying you have clients that are retiring soon got to be pretty jittery through all this.
It's it's really.
I do a lot of public speaking and I always test the waters in my first question is are we feeling more prosperous.
That's why I'm amazed this consumer confidence.
Poll is up again I I'm not seeing -- New York I was there -- couple weeks ago.
I'm not seeing -- in Chicago I'm not seeing it in Louisiana.
In fact people are still losing jobs and those are getting -- retired that they are scared to death.
There's another concern and that's when they start tinkering with Social Security what's gonna happen then.
It's it's it is scary out there in the real world it's scary yes and the markets not the -- not be -- moved by the retail investor it's it's the institutions.
-- amen to that there's that big disconnect between Wall Street and main street against -- thank you so much for being with us today.
Sure Steve Sullivan president of the -- group data back Louisiana.
I make it down and one of these days haven't you been to Louisiana -- to admonish both.
Sorry go to Louisiana in July.
And drive for a little while in drive and -- -- in Louisiana in July you know just as night falls coming on.
You be smack in the bugs this Eisenberg was just gonna say why I would argue that it's amazing it's amazing how things are so different them but that's that account -- they sometimes gets to -- -- and easy and oftentimes you -- the superdome in Canada and the wolves where they've had.
As many syllables as any other city certainly Los Angeles and Miami and Tampa.
Would immediately claimed that in about a night matchup on that but.
Today the 2014 suitable announced is going to be made and the odds on favorite is New York now there's a big debate -- Well yes OK yes Jersey's clean -- Jersey.
Aaron Rutherford New Jersey.
That you -- successful in New Jersey but instead they're building a beautiful.
Okay -- that being said the New York.
Is this is not a very big deal for me -- when it comes -- Atlanta as it has twice once on an ice storm.
As a big dilemma Detroit it was a big Oakland dealers on a big deal New York is just another event and -- evidence all the.
-- it's why I've heard this I read this story I wouldn't whiny here it's bloody cold in January I would want to get on the and the got the -- -- the beta and I don't go out.
You're not from Green Bay, Wisconsin and I'm not saying that the -- as an enemy this or mobile what I am saying.
Is that when you're from these towns.
People don't come to New York in January or early February would have an accusing people do come here.
I -- the thought process it's so cold and miserable here on February 3 -- whenever this game is going to be.
No one's gonna come to New York are you kidding me if you're from Cincinnati or Cleveland or Saint Louis and you're going consumable.
The -- the new York New York's a great destination of late does not for New York president -- you don't think there is just.
Dirty snow you -- you whether you're coming well I don't know that you voted Jersey in the dead of winter and you're not dangers is nowhere to stay out that you're staying in new York and good.
There's a lot of people hotels but look hung black eye of the -- you're completely misunderstanding the suitable have you ever been -- suitable.
Okay if I were ever island let go warm.
While you would because you live in the general vicinity of New York.
But if you live in this city like Saint Louis.
And all -- said he had an opportunity and eight go to the civil do you go to New York.
You don't care if it's January February August whenever -- New York cannot come to New York.
Everybody a million people here for it.
And I think they're gonna get slightly 3 o'clock this afternoon they should.
Make the announcement.
Woody Johnson owner of the jets he's going to be on squabble with David as -- later on tonight in the Fox Business that would exclusive -- you're gonna wanna check that out.
7 o'clock -- we'll talk all about the decision an -- -- New -- the odds on favorite you know going up against Tampa and Miami -- -- had as I said a million symbols.
They got these great things and you're going to be fun and I think the NFL and the fans will like -- you're gonna come to New York you're gonna stadiums in east throughout the average person if you will -- -- -- -- brand us.
-- -- -- -- -- -- -- -- -- -- We're down a 149.
We'll and that it should go to Miami and we're still talking about the welcome back -- -- -- -- -- live -- earns its product.
Left the car was working already were only -- 142 points.
The Super -- if you go to Miami that being said we're actually Webster is outside actually not my question.
It's warm out actually it is not.
It is very global though thankfully and in the -- right now -- talking about these markets.
Then I scolded because we have the famous from -- down here in the financial district that we should be looking at the back into the -- right now let's talk about what's happened so far.
With these yeah I'll leave it right there I think you get the picture is up about what's been going on so far in -- or overnight all of the major markets dropping like -- rock down 3% a possible.
A lot of this up because -- rising political tensions between north and South Korea the kospi composite in -- -- dropping more than 3% same story on the Nikkei in Tokyo in hanged Hong Kong the Hang Seng also down.
Three and a half percent then we go over to Europe.
The same story -- the markets down across the bull that is the same old problem concerns about the banking system the widening debt crises the Euro.
Now down -- near a four year low at 122 against the US dollar the British pound also dropping.
-- my -- -- -- libel rate -- sounds very boring this is the rate that banks charge each other to lend money.
Hitting a ten month high today -- point 536%.
What does that mean to everybody at home.
It means something because that rate -- mean that it will be more expensive.
-- consumers' credit card rates are pegged to the libel rate.
Some -- those arms the adjustable rate mortgages so only will this seems to be a repeat of what we saw eighteen months ago banks starting to hoard cash perhaps.
Worried about how they going to be generating money -- probable -- this guys we have.
Banking regulation the EU wants to put a new attack some banks to help fund and insurance program but future bailouts for banks right now these the -- seeing just seeming to be just a little bit more on -- so what do investors do.
Well they sell and run for the hills apparently.
Yeah they come down on Wall Street you -- a loaded two hours behind you right now lastly but hey I was watching these markets this morning -- Watson in need get all the banks Japanese banks were down.
It seems to be at basically across the board the banks in every country -- up and this morning down kept getting crashed and so this is a worldwide -- It is certainly -- world wide phenomenon and let's not tell a kid ourselves back eighteen months ago but certainly back when Lehman Brothers went bust in September of 08.
It was then we realize how interconnected the world is with regard to the banking system so what happens in Europe does have an impact elsewhere there's no doubt about it.
And I just get this feeling with the -- rate going up -- of banks again is starting to get nervousness starting to hang on to cash.
It's exactly what you don't want when you want economies to grow.
Yet thanks actually we appreciate it and that's actually -- -- -- and -- Bowling Green at the financial district here in New York just a couple blocks away from Wall Street.
On -- probably announce talk probably -- rather by John Brown once again see Marcus said -- Euro Pacific Capital making his way to this side.
And upon once again good to see John good to see you Chris clear Andres is you don't -- just that generally now I.
I've been in the camp that.
The United States is not Europe particularly Southern Europe we're just not the -- yes we're spending money left and right yes we have tremendous fiscal deficits.
Why I understand that that's how we're similar in a very dissimilar.
History of I don't know -- you wanna call it work ethic to whatever the case may be.
But I just think -- that dissimilar from Greece and we never will be you seem to think that we might be more similar than then and different.
-- one similarity is being the constant devaluation of the US dollar.
In real time is -- us -- against other currencies and of course not it's because people are -- about other currencies the US -- very strong.
And that's why they're live all right is rising because people are realizing how many do I want to get out of some other currencies like the into the dollar into the big ship.
-- -- -- Where actually maybe the big ship is sinking to -- maybe you want to be on the dry land which is code and Silva.
But I want to get into the -- and that full banks in London must jogging more and more for dollars so the Libor rate is rising.
When respect that but you're right I'm America has a tremendous work ethic.
And until the lost.
Five years those America used to send sell -- goods.
Not just based on price but on the whole product makes -- quality -- goods the office sales service and -- You just take one major exporter for example buying -- I'm in great -- tremendous quality and great off to sell settlers in that's changed that -- when it's changing I mean -- unfortunately.
Like it -- not -- becoming socialism.
The socialist and apple people -- designed -- won't depend on the government I don't want to do -- myself Highlander.
What -- size but for more money.
When to capitalism says work harder for very much more money eaten and -- -- that's changing Saturday in the United States and so there is a similarity.
America as well behind -- but -- day in the same direction look at our debt structure.
-- -- Britain has the -- worst.
Government debt ratios in the world and America is a -- was to be so well that with the -- bad people of course.
-- never allowed to mentioned -- that United Kingdom and the United States may.
Made -- -- credit ratings.
What's changed since you -- last year because when you -- last year you were here right before the elections in the UK.
What's changed overseas it is is -- same story in the UK are.
Well I -- ended in elections in the United Kingdom and what we got that was basically a non resolved.
No party won I mean and they voted against everybody read it.
Do the conservatives on the -- leader a pretty liberal minded they're not really conservative Cameron is suddenly not an imitation of Margaret Thatcher.
And so he was very prepared to lean further to the left and then socialists and -- -- to the liberals.
And make a coalition with -- -- so keen.
To be prime minister that he's giving way on almost every key conservative.
Mandate and that's very -- because it means that Britain too is heading to and further towards socialism despite the fact that Gordon Brown the great seriousness was -- -- the election fresh.
Well you know you it's funny you know it's you mentioned the fact that the Russian to the dollar is akin to passengers on the Titanic streaming towards the stern of the ship.
As it began sinking.
Two of the -- But I among my question then is right it's a big old ship the US is big -- can this thing turned quickly.
Mid term elections -- -- in -- of November we get more toward a conservative government where.
This spending will stop or at least slow down a little bit can you reverse this course.
Well a big ship takes a -- to turn it.
But if they have -- real power and the propellers you can turn it.
And real pop for America and -- in the old days it was spending now it's going to be hope a new idea for America.
To really go for entrepreneurs and I think -- that and therefore you have to see massive cuts in government spending massive reductions in taxation.
And things -- added this is a solo thing that would -- -- America and I'm petite body is -- the grassroots actually wanted.
And so a government that came in to do it would be a hero to grass roots and would be very very successful that would be the -- That putting power on and so you can -- the big ship.
Are we getting anything like this in the UK any of that grassroots.
Like Tea Party has a small hear other people in the UK they're saying.
We want to make tough decisions and tough sacrifices.
Yes you arm what's fascinating it's -- an -- you popsicle the united kingdom independence spot on in Italy anyway.
-- well they it's hard for anybody to get in on the first Boston -- bases as you got about 40% of the vote.
But in the proportional representation which is for the European Parliament we have 14%.
Of the British seats.
And so it's beginning to get representation.
And that is a posse and is basically the equivalent in the united kingdom of the Tea Party in the United States.
But you say that -- you know these changes.
BA get European nations basically turning down all the necessary measures -- and they say they're going to agree to them but we know at the end of the day it's not gonna happen.
-- we're in a bigger hole because we bailed them -- and that clearly didn't work.
That is exactly what's happening and it's happening in Britain -- Had a six billion dollar cut in public expenditure but the day before they'd raise the tax thresholds -- cost them seventeen billion.
-- then there's still madame would crack.
And it's a political problem because the politicians are so used to spending a slight -- Who's used to eating getting on adopt this afternoon I know I should but it's agony keep -- on the dot many teams show good jump in the evening but it.
But it's not working right now we spent a trillion not visit trillion dollar.
Package basically on the table for.
Greece because his misspent.
I mean that the -- he has as it is to cutting government spending and the trillion dollars in American and Britain and -- should be used to reduce tax.
Not to just give money away it should be reducing taxation and that's the real incentive.
Because the people who want to work hard appreciate the lack of tax where there's a business and individual.
People that you just solve a lot of trillion dollars to it they say it's been a week's time where's the next trillion.
And so what's happening in Greece is -- a paper -- papered over the problem.
The problem is still that and the Euro is fundamentally flawed in two major respects.
One is that despite the -- differing economies they've got a one size fits all of them someone in the disparate economists and that's the common.
And commonly recognized throwing the other but the one that's not widely recognized as the fact that the -- like the European Union.
Was conceived and pushed on people by stealth.
And therefore people have -- and it was not any non democratic and anti democratic and -- now you've -- in key countries like Germany.
Where the European Union is now becoming very unpopular and the and so they will not support that politicians who want to start.
Getting the Euro under control and increasing -- getting to get out of Europe to cement the error.
Real quickly I got about five seconds where -- -- -- -- with the Euro local against the dollar what do you think it goes how much lower level I don't know how much lower yeah that's like -- to me which.
Padraic cat -- to move when he gets -- this event.
I can get all of this I have this habit of saying yeah 110 yeah if -- -- -- -- -- -- are buying euros they have to lose my body.
Somebody the Euro -- has to come -- well it would be hidden in the rescue for Greece.
That's and turned it percent of -- was real money and rest is just guarantees in total first we have Stuart Varney who actually lives are now John Brown the Anglo influence here on this network today if somebody.
I'm glad for it.
I yeah I've -- this is important so I think we can't talk about it but we have to go to break thanks John good to see you thank you paparazzi markets that is.
Euro Pacific Capital good to see him as always -- I think with great market down 117 league and a little bit of fluid since we started the -- so we.
Hope we can stop and -- -- -- let me go back.
Look back that's -- dot com live -- -- this pattern still talking about really worked up I can't because it's a very important and John was so great because you can speak in real terms of many people speak over everyone's -- And I don't talk to him for hours I guess we have to go to Peter Barnes though because he campaigns not I can speak to the masses like myself.
And -- -- -- spending package Peter that I love that -- on this the job another job creation bill.
This is good.
Well that's right Tracy I thought I -- mine at -- British accent is now.
-- didn't want to -- and take it straight right I'll do my best -- yeah I possibly can't but I that two bills that congress is looking at this week.
One of them is a war supplemental bill 59 million dollars that would.
The war in Afghanistan and in Iraq but there's also.
Billion dollar -- a stimulus jobs you know tax bill there as well so.
Scott was just trying to push through.
250 billion dollars in spending this week before it heads off for the Memorial Day holiday -- some of the items that they are looking at are the so called doc fix in Medicare you know they were there some.
For project there some plan cuts and in enough payments to doctors to fix that would be about sixty billion the war supplemental is 58 point eight.
And a extending unemployment benefits to the end of the year.
Through the election by the way would cost about 47 billion.
There are some.
What they call offsets here in the real world we call those tax increases and three of those tax agrees is one of -- more tax so called carried interest the profit and private equity deals that would raise about nineteen.
Billion dollars then they want to close some tax loopholes they call these loopholes on.
On the international profits from US companies that would raise.
See here about seventeen or eighteen billion and then because of the oil spilled on the golf -- increasing quadrupling the taxes that fund the oil spill trust fund.
Four clean up so net net.
It's about fifty billion dollars in in new taxes offsets and and that's analysts are looking at I think that's -- these two packages will add altogether about 200 billion to the deficit over ten years.
Peter -- it just the proof or -- -- 200 billion dollar bill like that and it seems almost like they're planning on doing this over lunch.
Now they've been doing working on this while everything else has been going on and some of this has had some congressional hearings they've they've been looking at at some of these provisions and -- these tax Extenders for example I ever imagine -- tax increases but -- budget provisions -- -- such as the R&D tax credit extending that through twenty -- build America -- part of the stimulus package would get four billion.
Credits alternative minimum -- tax credits 2.3 biodiesel.
Biodiesel credits about a billion dollars so there are some.
Tax Extenders and here that are that benefit there tax cuts basically at that and tax breaks they don't work on the -- for some time other than some of these other provisions -- also had hearings but.
Because the clock is ticking down here particularly in the senate some of the stuff that's just been.
You know percolating out there is finally getting acted on.
All the respect I mean this is -- this is stupid bill because they didn't say let's extend -- everything we had that expired on December 31 pretty much.
And they should have done it back at the beginning of the year because now what they're saying is well it's retroactive to Jan one.
Help people when you try to plan and it's like happy years gone -- Well part of it is is that I'm calling this stealth stimulus and they don't want to do another 850 billion dollar stimulus bill but we know they're gonna Stanford's horribly unemployment.
Benefits -- a hundred billion dollars a year they want to extend -- that this bill would extend that.
The cobra benefit you know the ability -- by your health insurance coverage for your company if you've been laid off.
That needs to be extended as well but their take they're doing it in little chunks here because going into the election they don't want -- big headline.
Number that says you don't 3040500.
Billion dollars because people are.
Tired of the spending tired -- deficits and -- tired of ballots.
But 250 billion.
As well that's just lines.
And the court got this thank you in the same place -- -- well now.
They well that a little later -- thank you so much OK guys.
The divides that -- -- this small a small little 250 -- if you believe that announcement of fifty billion dollars like under the radar screen really small -- -- -- just has not to worry about them getting upset about overspending but he's right I mean that's out that's not being presented in the dispute that -- times and the -- that's exactly what they -- -- -- -- down a little bit since he started the show down -- -- two points on the Dow NASDAQ also bleeding a little -- right now let's send it down of the NASDAQ once in -- joins us right now.
Law and we had a bunch of names yesterday actually doing fairly well even though we would sell an awfully in the day and apple for example.
Some of these tech names were doing well and today boy they have really gotten hit hard it seems that whenever.
The S&P is down a bit in the Dallas down a bit the NASDAQ is down more and vice -- when we go to the -- about today.
Santa all about -- about at this hour Chris and I -- nice to see you got out.
-- lower right -- -- -- announced that the good news is we are off session lows but still taking a look at the NASDAQ down about one point 7% that's about a 37.
-- declined Dow S&P 500 also down by about one point 7% so the Lawson CR parallel looking at the NASDAQ in particular for the month of many it's down in -- double digits down 14%.
From the April highs of the market.
And -- take a look at the volume there one point two billion shares very heavy for this time -- day.
They didn't mention of that decline is -- breadth of the market the -- advancing issues in the number of declining issues.
And -- for every one stock trading higher today we have seen twelve NASDAQ stocks trade lower so a very very deep.
Decline in terms of the front of the market right now we are seeing some winners in a big winner of the day is accompanied hold Neurocrine Biosciences.
It's up about 32% right now trading on heavy -- for the stock about six million shares.
Had changed hands basically last night -- got some positive results based on a drug trial that reduces pelvic pain.
In winning it also got an upgrade to overweight today at Piper Jaffray.
So we are seeing a green arrow and nice rare event here at the NASDAQ today finger -- scientists.
One company moving into the downside the big loser of the day.
It's a trucking company Arkansas best is down 16% of course that the decline like that it is that.
A 52 week low today basically.
Arkansas that's largest union came out incident will not accept a wage -- bad news for a company that really trying to.
Reduce its overhead so that's a bad news -- Arkansas that -- sat down 16%.
Well SI systems this is huge -- today for this stuff -- -- right now is 19%.
-- what they sat typically trade at the end of the day so heavy buying here it's up about 4% so there's another green out for you.
Basically what I system -- air cargo and equipment that that looks into the -- gauge on airplanes and is aimed at three million dollar packed today with two major global airlines.
To provide their equipment to help not and we don't know how it is.
At the airports these days so good news for let -- We're talking about indicating christened the big cats -- -- the apples and rules that we.
Usually look at mostly -- all to the downside today even down and -- found that one and a half percent right now.
But he did unveiled their new streak that's what they're calling it that streak tablet.
It senate deal being in the US late summer and it's -- earlier in the UK early summer.
But basically it's gonna run run on the Google operating system.
Google shares also down by about 1% -- that's paralleling -- declined -- Intel down 1% very tight range and E*Trade down 4% final one for ten reverse stock split.
That did seeing sacking -- and Tracy back -- It -- out thank you very much to cover the market how much to say that -- but I want to point out of -- made the point about the advantage of the decliners on the NASDAQ he got it in the -- the same on the -- see you got.
About 9% advancing numbers is 90%.
And yet just a few you know bright spots out there you know -- -- denies data announce a new product and the and no win situation -- then that Dell streak it's going to be sort of between a between a Smartphone and the the apple iPad.
But we're Brothers earlier I mean there can be no news today -- -- still wouldn't miss this still news because nobody and thinks that welcomed into anything -- right and it's it's kind of a crowded space you've taken on apple which is the big juggernaut all right let's say quick break when we come back.
More to come to.
When it gets him when I think.
That yeah we'll be back whether.
Welcome back foxbusiness.com.
Live burns and -- with few hey you know what it's been -- really troubling time.
For individuals out there in this recession but it's also been of hard time for small businesses is certainly talk a lot about large corporate -- struggling but small businesses really struggling a lot let's go to Bob Wheeler right now partnered founder of -- there are also known as the business doctors and they are here to help you appear small business hey Bob how are you.
Pretty good thank you.
All right what is it that the business doctors do to help these small businesses fifty million to a hundred million dollars in revenue stay afloat through these tough times.
I think the most important thing is.
Take a look at the company to see if it's viable.
If it's viable doesn't have the capital and able to get from here or there and it's as business plan.
Sometimes business doctors -- -- turn around consultants on.
By definition we are supposed to turn around company so.
Hopefully when that happens you gotten bad the -- you've gotten involved and I'm lousy situation to begin -- But what does that mean and I find you I mean.
Do I get to a point where.
I'm broke I have no marketing plan -- can't stomach product you know -- can't give -- away and that point of total desperation before I shut the doors I call you.
-- that and I wish you one.
Normal normally what happens is we got a phone call.
What is close to being too late not quite too late though.
We can normally -- -- help a company.
Take a look at his marketing plan strategy.
Take a look at its.
Ability to raise capital.
Try to get the banks to.
Worked with our clients and sometime one case we got them to extend.
About 24 million dollars in debt.
For about a three year period.
Is a big part of this the fact that a lot of these that that the company just don't know what to do these Smart companies they don't have an inexperienced.
In trying to hold off the banks trying to stay solvent for -- that little while longer to kind of get over the hump.
A lot of companies have knowing that they don't have a clue what to do yeah all of a sudden they've they're -- makes a phone call.
They go see the banker friend.
Then there's a problem.
Well and usually that's when.
Usually that's when we're one of two or three consultants.
Recommended to help the company.
Well -- I open.
I hope people keep got -- -- use we can keep the doors open and small are small businesses run and Bob Wheeler partner and founder really riven.
In Philadelphia thank you for below -- there.
You know there's certain places actually that are really great for small businesses in -- certain that it -- downright crappy and Rick Newman is here with us chief business correspondent for US news and world report.
And sorted things that we've heard a lot -- we recession we're doing our Saturday show -- a small business.
It's come down -- -- it comes down incentives and -- in this Cheney I don't go anywhere I don't need to keep myself especially from a occupy nor I have that.
Take me anywhere you want spirit so -- kinda.
If you can -- afford to move where they had to right right places aren't a lot of people can't -- well officially testing data from this from the Kauffman Foundation which is a nonprofit that promotes entrepreneurship.
They -- a state by state ranking at an annual report in the -- -- his interest thing.
The top of their list for that for the states where they were the most new businesses created in 2009 as a percentage of population.
Montana Texas Idaho and Georgia are near the top of that -- you -- you wouldn't think about you wouldn't think of those.
Places as hot beds for entrepreneurship.
And it's it's not entirely clear why that's happening but these tend to be places did not get hammered.
In a recession and they had to have something that is drawing businesses there so for example Oklahoma I think the energy sector probably -- a lot to do that still pretty strong.
Montana has some mining and some energy to taxes energy again Idaho is -- tech companies and everything associated with that from higher -- places like California.
An interest only on this list.
Also some of the stands sand states that did get higher hammered from during a recession with the housing bust so.
Arizona Florida California Nevada -- above average is well.
And that's probably because unemployment is so high in those places that people who just can't find a job are around starting new businesses.
That -- -- that I noticed Julio Texas.
Has two things we talk about it all the time with Texas corporate tax -- a structure.
And also the fact that -- you've got Boston area that a lot of universities and I think that probably helps a little too ready.
I think so.
But at the real question is to what extent are -- The interesting thing in 2009 there was there was a surge in new businesses now you would think -- that that's not that surprising.
But it went up a lot higher than expected highest in fourteen years -- hire -- create new business creation and after the 2001 recession.
And I think the real question is if a lot of these people are what you call action on Chuck -- or necessity act -- just doing this because they don't have any other choice not those -- is -- last thing that's really the question that we know that about half of all businesses fail.
So if that rate stays the same but they're actually more new businesses being started that's good news because you know most jobs most new jobs don't come from fortune 500 companies.
They come from small and medium size businesses we need a lot of them.
-- -- tomatoes that California is so high because -- there are no tax purchasing their whatsoever.
All round individual state -- you get killed Texas makes sense because.
They put it likely work for free right they don't tax anything you do wonder why people stay in California sometimes they even make it seemed put everybody -- -- complains about being in California you can pastors and people -- question right everything's expensive tolls are taxes and yet we -- -- -- life.
-- and when you think California for these purposes I don't think we're thinking Southern California I think we're thinking Silicon Valley in the whole mentality.
That goes with not just big companies -- get venture capital but cut you know smaller companies -- just have that by.
I mean you know one of the things that researchers know is that they're just does tend to be more entrepreneurship in the west.
As if it's a legacy of the spirit of adventure.
You know that you know begin with Lewis and Clark and everybody who headed west to -- it's still out there to some extent.
Last place was Mississippi.
Yeah and eaten in Mississippi is last place on -- home.
Just about every single ranking guys seemed to see these to hit -- -- -- let me let's go to dot net amid an odd but there is you know what I want with -- reason.
Well here let the first of all let's say it was Michigan wasn't in last -- I usually Michigan is at the bottom of your right Mississippi -- the bottom five here again this is in terms of news new business started per 100000 people Mississippi.
Nebraska Pennsylvania Alabama Minnesota South Carolina.
I think that sort of common theme among these these states is these these states are not high growth states to start with.
I think if you're an entrepreneur if you have an entrepreneurial mentality -- from the states you might might go someplace else because you you need to be surrounded by the infrastructure.
For new businesses.
Five people who will find new business is very important.
You know and we know that regional banks are having -- really hard -- now that's that's where a lot of the landing comes from for new businesses.
I think you just -- to be working with people you want to form a business with people -- kind of have the same mindset as you.
So I think those tend to be just lower growth states that generally don't you know don't have those types of economies.
But surprising -- about -- you know.
It's his whole notion of going west we still see all the -- many of the venture capital firms out west right.
Continue go with a money -- to -- point you -- think that in this day and age you don't have to do that I could be in Jersey you can find me.
He was there it's still something about that face to face I got to be I gotta be there.
I think there is an lets also keep in mind that most new businesses we're not talking about they're not.
DC funded there and these are often mom and pop shops in these -- I think -- really noticed yet to -- it's really interesting what when we figure out what's really going on what we learned that we I think probably.
Bodies -- Internet businesses.
I mean you can start -- big business from your home.
The question is is that -- is that in terms of the overall economy is that really turning out to be a reasonable substitute.
For jobs -- people used to have a big companies what will there be meaningful job creation of some of those web businesses or are these students turn out to be things that people just do for a little while.
Until they can go back into a -- company and work for somebody else.
There does seem to be a fairly high percentage of changed and gone back in 2007 that's where that this study mentioned to -- in a lot of cases West Virginia 100%.
Increase right you know and some of these other states New Mexico why New Mexico 56%.
Decrease it seems like deal that's a pretty large number -- -- just the 300 I.
And I wish we here in the researchers do caution and they say you know.
Some of this of these -- for some of the smaller states samples are fairly small so you can get sort of over -- exaggerated results.
You know I think it again to go by have a lot to do with what's happening with employers in those states and what are people doing to survive the recession.
There's also no real clear cut.
You know but it -- agrarian economies right doesn't matter I -- you've got some on here.
Fairly high up an old did some very -- you know Nebraska second from the bottom certainly you would consider that an agrarian economy south Dakota's well in the top ten.
There's no real you don't.
Most of -- and since we're talking rates of growth in some cases I mean I think a lot of times it's just they just weren't that many entrepreneurs -- start with.
And again we're talking about you know can be dry cleaners.
And maybe it maybe these are people who are saying I can reach -- I can use the web to reach customers not just in South Dakota.
But anywhere I wanna sell -- jam more my life you know flour products or whatever it is I happen to be selling embroidery.
-- -- -- business does it appeal to you at all like tech bubble because it does to me a little bit.
I don't think so -- there's I think there's it feels like there's an element of desperation to it.
In I mean India it what we also know it's a small businesses have been getting crushed during a recession.
They can't get loans I mean that's the biggest problem right and you know small businesses tend to be ones that are on the margin they don't have a lot of cash sitting there to ride out you know two years of and have a brutal recession.
So they've been getting crushed.
Which means it's very surprising that there been this many new business is created and you know I think it would be great news if if some of these last and this is where a lot of the new jobs come from because we don't know where -- Come from this point -- my mind I think big companies don't want higher I think they like being extremely productive I think -- -- a little more skittish about the future then.
And the CEOs like to admit I think they'd much rather try to become efficient with technology.
Instead of increase production by hiring people you are hearing CES so this is really important even companies are hiring five or seven people.
Really important you know some very optimistic and that he's and in these numbers will be -- next year well it's a bubble in terms of new business creations.
And you know what do we know about bubbles -- But I you know no question about you know we're all straining to see good news in the economy should be nice if this were really lasting good news I think we've just done.
Thanks very thanks Erica thanks guys.
Brigham and chief business correspondent the US news and world report joining us as he does from time to time and we're happy for -- to a quick break when we come back.
And it's -- -- save money -- We need that out of daylight to -- only to have any -- -- -- I'm now on the patent related there's nothing.
-- I'm still laughing about Mississippi I shouldn't laugh about it and -- Mississippi's in the bottom five in education.
There in the bottom five over the top five rather in terms of obesity per capita.
Bottom of this list from Rick Newman and his feel bad about that and the city is a great state.
I love Mississippi in mind and -- -- the -- -- -- -- sudden sitting self made this 91 and love it edition make up for -- bubble quite right yet simple back.
You kissing up with something.
-- -- right so.
You would thing.
I'm desperate to get -- back on the planes you would think they'd be giving it away not so much they got they're charging higher airfares now what's interesting is it's not just the -- -- -- that this is the I have to tell you the song goes -- -- a thousand times.
-- -- about 9% are going to be up about 9% this summer compared to last as it that's how bad enough.
This surcharges are gonna -- -- -- letting but.
I think you said it.
-- everywhere I have.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And fees I mean you name it that damned cookie on the plane that used to be seven dollars and 87 with a surcharge now it's just.
A control okay.
Here's the thing.
Two things first of all air travel unlike just about everything else we spend money on has really not increase in terms of our class.
Being in years.
Second thing is there isn't any elasticity of demand here.
Despite healthy long time to honor her glove -- a -- I thought if he's very easy if you don't like the surcharges.
Live take the train ride your bike you know you and I to get on one of those tandem bikes you know regular funding out of that right -- I think.
As airlines parent around -- airlines they did this to themselves and now they're screwing us and here's what they did.
They -- -- tit for tat -- price war and they not their prices down so low.
And then they make money wouldn't even in the running electric on there is no way to commitment yet to say now we've all -- very spoiled.
Know you want to fly home to Atlanta currently -- 99 dollars or whatever it and they can't they just cannot possibly survive it yeah so that when -- -- you -- -- 99 dollars they need to make it up somehow some way.
Synonym because I got my took.
What's it could just gonna pay more to fly period and the story I mean I actually know somebody in Atlanta was -- appointments -- New York but.
It especially here it was.
300 dollars they get to -- guess at 300 dollars and tell you something you get the ticket you're not gonna spend much less than 300 -- -- of those days of 220 dollar tickets.
-- not sit well that's.
And it's unfortunate his worst wild act in the -- Florida -- 120 dollars you cannot do that anymore what is yeah go have.
Like I was seven this is this is a great.
-- into Peter -- who joins us once again CEO of military dot com.
Ahead because he's here to tell us how to save money on anything and everything I'm guessing that flight and say don't plot we'll -- that -- percent of its Cisco and you wake of the -- of -- -- yet.
700 plus all of her no no question -- -- is just it's the facts right the fact that he could still probably dig around here to find -- cheaper fare but.
We're going to be paying more to fly every flight I've been traveling the last two weeks is -- -- -- them.
-- -- now there are some ways you can save money on other things though you're paying more for your flight so we know that.
But maybe I don't know your cable bill cable bills are -- one thing cable or satellite there's a lot of ways to save money you're probably.
Paying for packages and channels that you don't even watch and you don't even -- in the that's Stefan -- -- from concessions.
Every single month it literally is just for me it's -- some cost but I don't worry about it because that -- I'd I'd need cable so badly.
-- pay anything forward after the bill comes.
Write a check Reilly's show to get off fighting me because they have a guy work homered for directly at the it is exactly it's work to expand its work that's like you don't want to sit home and watch but I understand for most people I think it's what's the bill highly paid to get out of the way and move on they don't think about.
If it's a 125 dollar bill it could be a 115.
And that's -- to add up if you do that on all your bills and so there's a lot of things that you save money one.
Is how many rooms coming TDs you have are you really watching TV and I guess -- -- the need an HD DVR I logged on to charging every single DVR and every room in the house.
If you only watch each -- -- Raj and season's over counsel for the next nine months no me for a.
They're little things they about the depth we have -- plans are always changing you gotta pay attention this -- a better deal out there for you right now.
Most you'll just -- sign -- years ago and Lexus that just paid ability month.
No not at Sinai to Eminem and I do try to get fifty believe it or not and -- -- again as somebody who can finally understand.
And the one channel I want is in a package of like 100 other channels that happened.
So I end up paying almost more than I started.
Yes figuring out which channel -- -- which packages the hardest thing.
-- you typically have at least two or three choices to satellite providers DirecTV DISH Network.
And no one or possibly two cable network provider depending where you live in the country.
And it is a -- packages and the platinum is a super platinum.
Who I can't they get a sports you let up not liking sports it would save you so much money because the sports packages -- crazy expensive.
-- no need to do about it right but this is well this is why you just -- it but -- -- to get you know the Denver bronco game right here in New York.
NFL ticket right you that -- -- -- right.
Billion you do mean if you wanna have they got to pay a lot of money for that if you -- -- have the hockey won the basketball on the baseball all of those.
You've got to pay -- yeah 40% of love most your cable bill is related to the cost of sports channel are we heading more in that direction Alameda we -- ended the direction of all -- which we've talked about ad links here because of all the problems with the cable providers and the networks and cells what are we heading in that direction all that save us money.
I I don't think it's gonna happen.
So I think.
You know they're negotiating five -- ten -- contracts with cable company most of the content providers.
And that's going to be hard you know the best thing that you can do is against sit down and figure out.
What is this stations that I actually watch -- the channels -- actually watch how many rooms you know what's important.
And then figure out plans so that's the things that we -- should duck do we need it it to be fair mean in the standings can just watch on my computer if I -- -- you know let out Hulu -- C Netflix is a lot of content online but it's not everything so it depends on what's important to.
Also you -- be stuck to your TV to your laptop for your computer not the -- -- TV yet.
-- high definition isn't really there yet.
So a lot of people around plugging.
It's gonna be small about 1% of the population today it'll get bigger.
But dumplings going to be hard for all the constantly I'd like to watch it we also see a lot tons of commercials here -- -- city Time Warner Cable.
About bundles and that's all they ever talk about a future.
TV years computer in your landline phone on one bottle and sits on the money do you really not politics so about fifteen point percentage will be triple -- what is typically Colton but a lot of times you're better off using a wireless phone and not even having a home.
I and so they don't really factored things like that in.
-- Internet DSL -- cable again it's gonna be based on how much bandwidth when you downloading and streaming content.
You just need a small little package for DSL or -- bigger package for cable.
It's not always the case a lot from splitting those things up for concede much more money.
-- -- -- you know that's that's listen it's much like me go to Costco and needing.
To have 45 a little -- -- on its civic you don't need a candidate do you need all the stuff.
Well you would do all of the family and all the kids using that -- paper you're gonna musically out of you it's not coming in on the use of nuclear storage and not -- you're gonna use it as -- -- about it but what -- do you watch.
Everything you needed to watch right here no.
I think with more channels and -- the problem.
But to deal one of the problems I have is I -- -- that I really -- understand -- bill.
I get a bill and I I think I'm pain.
89 dollars for -- -- right now Sibley 89 dollars that's cool plus two dollars -- 5785325.
In my time in the bill comes it's 125 BD guys help people understand what you're paying for gas and what you can eliminate.
Without getting snow on your TV the next time -- if it's all about all right sitting get.
What you should be paying for right.
With -- only using X amount of -- channels pay for those channels.
In the -- -- awfully the most confusing part yeah help you figure out which bundles.
How about specific child so I did I put my bills online -- get on the phone some I don't use our web site you basically just tell us how you use your TV.
So how many rooms you have if you need each deal one count on one room you need -- on the other.
You need HBO you need to watch.
Specific show like entourage or -- It anything into the -- and will find the channels from the -- does that fit and you have a database of all the different cable systems Agassi you know Cablevision -- time one -- is Comcast have nine providers in the system today which covered by 80% of accomplishment well to get everybody in there but it's.
It's it's amazing you know that is over billion.
Yet off but let's say I'm signed up for something and then you find me a better deal -- -- cancellation season suffered yes so where we factor in things like contract termination fees as well.
A lot of times you are in -- year contract -- one -- contract you just have to pay attention or other things that we're looking at is promotions -- they send you this -- hits fifty dollars a month.
But it's only get them for sixty minutes yet -- contract so we -- at was average cost of this -- going to be over the course -- you -- -- this service comes our way at the end of the month right so it is that he already know that those lines of tomorrow launches tomorrow case we look forward to -- -- -- dot com over a million customers in over a billion dollars unidentified city so it is worth the trip.
To the website that is for sure thanks Peter thanks dinner -- CEO of those three dot com we'll tell with the I don't -- -- I had in war and -- my election.
If you one person you can't watch them all the same time feeling really tank unit.
It's a little picture in picture thing on Georgia -- -- -- -- but you know when -- the remote control on the show and I can't picture it like three games going on in one day one know like I have a harder time is paying attention of the huge screen -- -- much less analyst.
I'm confused for having.
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