FOXBusiness.com LIVE: Poor Losing to Banks

" Foxbusiness.com live in the sense others is in for -- today the chief investment strategist at Charles Schwab -- guest host we've had -- so. May get -- TV anchor but to anchor civic. Kind of fun fun we have this great -- lined up to talk about at the end of the week a lot of different things and everybody in their Brothers -- about Michael Jackson today but there's a market and isn't that it is an economy and -- a lot to get -- we're going to try to do that. We'll get into the Michael Jackson story by the way if anybody wants to talk about it but Robert -- starts us off of the top stories so robber was sketchy -- you off the bat. We're down 52 points on the Dow today and we have big rally yesterday which as you -- I talked."

" Better earlier was under very light volume so it was and what we're looking at today buying -- wasn't as big as some people might see as well yesterday it personally come up. A lot of that though one time my benefits from Social Security. Consumer Spending was up and spending looks like it's going to be up on Michael Jackson memorabilia as you were reported -- on the Amazon denies it's going off the charts right now iTunes and -- Consumer sentiment also backed its highest since February 2008 who were sort of going back. To a more normal period when you look at consumer sentiment type numbers. -- necessarily translate to spending as we knows it can speak to that but in interestingly if you look it's a pretty widespread sell off. Why not that heavy with tech stocks doing really well they I was looking at Apple Paul met its highest in at least a year probably more than that. Google -- chief executive Eric Schmidt out saying the economic crisis is largely behind us you've got more and more people. Saying that now more CEOs going out and saying that they didn't. You have to wonder if that becomes a somewhat self fulfilling prophecy putting -- well."

" I I happen to think that there's a reasonable chance that the recession is already over an event that's as much a tactical call as anything else that's not to suggest that I think. We're off to the races again and smaller bills have been cured but I think technically in recession may be over. I think what you're seeing when you when you look at the company's level and seeing a lot intact and in industrials and materials. Any company that has a global reach is probably seeing it in pockets -- versus those that are purely domestic and you're seeing incredible surge. In growth coming out of emerging Asia particularly China and I think that is being reflected viola CEOs. That have you know vision reach into those areas."

" Those stocks are up publicly -- in the ATF's emerging markets ETF is up the China ETF is up to you are seeing a few things of green just not that needs to investigate the chips are higher again. A global story it was looking into the Intel's equality estimates which is ATF that tracks that. Chip sector itself as well and Barclays Alps raising their second half GDP outlook for the US and Europe as well so expecting BC get better of all things -- citing. Some improvement in manufacturing automobiles looks like that you're seeing a bottom and -- some fairly bullish forecast had a JD power and -- yesterday didn't really get a lot of play in the broad rally that. They're seeing sales level off their estimates are looking for improvements this month -- last month's. McKeon had made what."

" The agency it is about Barclays too is there one of the big firms and it may just be one of their economists say they'll call but. Also believes that the recession this over and points to April as the end month which I I think could be a possibility given when some of the indicators we don't know until it's in the -- anyway -- can be -- tells it like on the average span between when they have -- in the past when we get the call from the -- fifteen month so. I guess maybe that's a nice thing about having a view that the recession may be over is is. By the time we hear it."

" This is just label so right at the end of the day is the recession or doesn't really matter to you to say out of recession ended in such a point or began the."

" Out to some degree it's labels and in reality if you look back at the monster which recessions have that ended when we know that hindsight of course. It generally all it feels like is just less fat than those environments because -- leave the keys where you hit that turning point it doesn't feel great at the point where. The masses really feel good -- arguably a closer to the next recession."

" Right exactly -- it felt better in April is the market was taking off yet I don't Clark generating market taking off and make a couple of different points number one -- the Fox Business Network right now you can watch President Obama is making some comments if you want to watch that live you can see it there. There's the president speaking in Washington as as we speak here on the Internet live at number two. Robert didn't take long Lucent has her first fan Paul and Saint Louis just watching him on rukeyser the times of Ramses. Lenovo -- yeah and a lot."

" And I I was at that regular penalties on that -- you know I kind of miss that that calm voice of reason sometimes especially would have been interesting."

" To watch him over the past year in an environment like this have that calm -- every Friday -- was almost like a -- voice that's how we are fox are very common never. Only the second -- got more one more sort of lucky bingo but. -- you know -- us forward looking at every possible measure of lending between banks for the three month Libor rate fell to a record low last night. So -- what people talk about that but if you notice you look at some of the bank stocks do pretty well today and the fact Goldman and Morgan -- of posting pretty decent gains in a sell off today -- you know they're not technically banks but in the financial sector so."

" It seems there is some some easing people feeling a lot better about -- bank lending has not fair at all that poorly through this is the securitized. Part of these lending. Market that was really -- it still is this fairly ill right now okay."

" Thank you Robert appreciate ever to move on again president of obviously the bottom of your -- live in the Fox Business Network joint appearance with. Angela Merkel the Merkel the German chancellor we're going to bring in our first guest here of the program Joe Hyder joining within myself from Dawson wealth management to talk. More -- pick up this conversation. John a lot of ways about the market that we were already happening how do you see things."

" Well I would agree with. -- his comments that I think very well. We may be out of the recession and as you know it's more of a talking point than a reality. Why we believe has wealth managers were recommending to our clients who we think. The markets a good place to be again in and we've been recommending now for a few months. Time now."

" Now you know a lot of people who look at the market as a leading indicator -- view their rallies the first part of anyway reflecting that. Second derivative just the rate of change going from from bad to less fat -- that now the market is looking for actual good news I'm not quite sure where there yet but what are your thoughts."

" Well there's still a lot of pain out there obviously here in Ohio."

" We're tied closely to the auto industry."

" There's still a lot of shake out going there as well self."

" I think -- stabilization. Mode where. We we're getting some good news. You know jobless claims are up by 15000. I was just released this morning an obviously for those 15000. Additional people there's pain narron and we're seeing it now I'm seeing it and."

" And are privately held companies that that we advice to as well."

" We see that is certainly the job picture is very very tough still shell and the other thing is and one of our viewers just brought that up on the comment -- chatter -- amp. We talked about all the factors that needs to be a sign of a bottoming process but what about things that are still out there -- wants to know for example in the second went on this as well about commercial real estate. For this for months that we should be very very worried how worried are you."

" I think it's a concern Tom. But we keep hearing about it and we first started talking about it people thought it was the next bubble to burst."

" I don't see that occurring. It and hang out there. I think all we're really seeing is."

" As jobless. Claims continue to rise but obviously in the last bad fashion as as you're suggesting before."

" Com companies are going to have to start hiring back lean inventories are extremely low and as the economy begins to. To pick up I think picked up companies -- we're going to have to start hiring in a fairly. Rapid rate to keep up and build their inventories back -- And that's you know when you see that that's when the pain for the average. Consumer out there will be over."

" I thought we talked about the last time you were on as a -- the united ME group like -- said Joe we've been talking for months about hey guys should really be worried about commercial real lost innocence. The deal for most of the industry's next shoe to drop and that you could."

" I think this issue -- right now and and it is they look now larger piece of the banking system in terms of exposure right then residential but. That's partly because we've had so much carnage -- residential if that's the -- the numbers work. There's a couple of mitigating factors no one is just that the difference between the expectations -- reality and I think a lot as -- the bill today expectations whether it's. Sort of emotional expectations about the market. Or actual write down assumptions for the banking system. You also have the term asset backed lending facility that is now brought brought -- reached into a commercial mortgage backed securities not only future ones but legacy -- so there's a little bit more of a cushion there that didn't exist when sub prime strips -- started imploding right."

" I want to get just thoughts in just a moment on some investments is the specific investment ideas what have you -- Listen to answer this first from -- rodents that it let me get this straight for months to a from all hands on deck emergency Q. All too big to fail must be saved two were out of the recession which is what I'm not as obviously responding to a comment you just made in. Doesn't sound like necessarily buys its -- and don't look I may."

" I wrote a piece in January of 2008 saying that not a recession have become a month before it turned out to be the right thing it wasn't. Really impressions on my part it was just understanding what. The NBER looks at what state what they measure when they're making their call -- to end. The leading indicators in the last two months as the biggest consecutive two month jump since November December of 2001 which is right out of the recession ended in October. We've now had the four week average of unemployment claims rolled down by now 42000. Every recession of the past thirty years has been over at the point we go from 40000. To better than that. We've we've had a bad turn in any ratio of coincident to lagging indicators which is an alternate leading index -- has a very good track record of timing recession and disaster but again this should not be confused with every life goes on opportunism it's just looking at. Recessions tend and when you get that turn not when it becomes very clear that everything is fine again I just think we have that turn. No one should expect it to feel good and not only that I could be very wrong about that view but. Looking at the actual indicates trying to look at them objectively start to turn the -- channel and they have turned in a manner very similar. To what has happened in the month in the past that the recession has been declared."

" at -- turn up hope that answers -- questions Josef sound reasonable do you do you disagree. No I I agree with -- I mean the pain is not over. At this point and no one knows for sure I mean. If if we all head -- crystal ball nobody would demand in the stock market. As of August of last year September's solid -- it but it certainly indicates. That the worst is over from our viewpoint you when we look tax perks like Liz. As wealth managers. We're seeing kind of a consensus building that they are better times ahead. First for the markets have we seen over the last couple months and ultimately force. With the consumer. And it appears based on those consumer confidence numbers. That people are feeling more comfortable. About where the economy's -- and very useful start spending money. And not on particularly on large purchases like autos again."

" And like -- wanted to spend a few moments actually. Talking -- with you about you know for a specific areas of the market that you do like we talked about commercial real estate earlier but just to go back to conducting a little bit. You've been venturing into re still real estate investment trust from what I understand me make that case to a system -- maybe. People watching want to think about --"

" Well we. We recommended to our fire out and pastors a few years ago to lighten up on real estate. Where little girlie man -- and bike. This time we believe real estate is then soles for souls. And they're still perils out there particularly in the commercial real estate area but we think for small allocations and a portfolio. That reach makes sense because of their high yields and we think there's real value there at this point foreign investors who once again. What we're really talking about this allocations in the three yeah."

" To 7%. Range and an overall portfolio one more making those recommendations."

" Connolly got an interesting email here from. DT you never know at the magnolia village seems like the market has gone higher purely due to peer pressure to invest cash I think -- I think that's a very big part of that I think. What we've seen certainly during at least some of the phase of the 40% rally we've got off the march ninth lows. Was a bit of the -- image of capitulation that you get when people are panicking out right so you think about what happened last year a lot of money managers professional investors -- underperform the market last year. Very difficult not to have a weak year. Russia went all the cash at beginning of the year but they fast forwarded to this year and sensibly if you're holding a lot of cash a year and no weight. You at least had tolerable conversations with clients because you have that on 80% in treasuries. Passport to this year you get a market that is starting to run away. And the cash you're holding is turning next to nothing in yields -- so it becomes return free risks and I think that the risk then becomes ultimate performance source the career risk. So I think you did see a lot of kind of capitulation and I don't want this train running away not -- saying I'm not going to miss this and it. -- sort of force yourself back and I I wasn't quite unquestionably some of."

" That's a good point out under -- it did admit to peer pressure on Joe do you do you think everybody's -- and it's I'd better also."

" college -- Peer pressure or you know green we all -- we all we all hate to see that train pulling out of the station and there's certainly some of that people bailed. Tom back in the fall they. Capitulated to the market couldn't stand it anymore. And down and got back in one they saw those returns. In the market and they learning you know less than a point in their money market."

" It's. Looking at some other questions that go back to his realistic again that realistic is oversold one of our viewers brought -- the -- remember market strategists saying the things same thing about tech stocks. In the summer 2000. It's true people -- I mean that it and we we talked the other day on the show about what the next bubble would be if there's going to be another bubble do you think about that type Sarah."

" Fact I think you could argue that that Treasury's became a bit of a bubble if the the the implosion of that bubble -- letting the air out probably happens. And a little slower wage because as we. Are in this era of private sector -- leveraging there's just a natural inherent demand for. Savings and -- treasuries have probably doesn't mean you stick opinion in all the air comes out at once and in terms of how much money had flown into. That the safety of of treasuries such that at the ninety day treasury bill yield went into negative territory the end of last year. On the right people were willing to repay money to have the money -- yeah that was not a sustainable -- and I think you could argue. That we had a bubble but again that's not likely to have this dramatic pop like some of these other --"

" A -- it was and we didn't think you'd have the real estate bubble after the attack on the decreed that simply don't work and Africa you know easy money brings bubbles was what -- on that you get all the you know from your point of view as well in the sand is right -- a lot of people sent treasurys was a bubble. Or is one of -- one that you know sort of divert what what how do you view that. Tech too realistic to what's next if anything."

" Well one thing no matter what air war and whether we're sitting in 2009. -- we're back to."

" The year 2000. Human nature does not change. Would hope fear and and greed driving so many so many investors. Com is just human nature. We're always looking to avoid that next fall ball I do agree that the Treasury's a lot of that air's been let out of the balloon already on treasuries. Just to reiterate her point I mean you looked at treasuries depending on. Where you learn the maturity curve. -- rates of return. You know 1520%. Treasuries last year so now people are moving back out of that."

" Back in the common bonds as well as the equity markets but it's from. It's more of that rather than up top it's more of the air just being slowly relaxed out of that balloon in my opinion."

" She was and your point one of the questions yeah emerging market question what yet but outside point because it's from DJ chads chads there that's that's a pretty sweet sentiment did they had no question I don't want to imagine what he liked almost built to meet these. Definitely so what they would then I don't think of emerging markets versus the US said Joe what are your thoughts on emerging market."

" Like real estate I think -- I'm a proponent of emerging markets I think there's real opportunity. Particularly in the Asian emerging markets as you were discussing earlier. On the show their growth rates are much faster. Then those in the United States. But you have a great deal more risk including political risk in those emerging markets so."

" I think it's opportunity. Melissa. What if a great deal of volatility so you have to be prepared for never roller coaster ride when you go into the emerging market."

" Okay fair enough Joe we're going to thank you for your time today for coming on for so offer us along with this show Bob talk again okay Joe -- How often does docile thank you very much grade and was evaluated and on and on just a couple of these subjects before we get toward next subject emerging markets was one Joe gave us his thoughts what yet you know."

" I think emerging markets represented by the big source of growth for the global economy particularly emerging Asia and China but it had -- good point you you have to look beyond just. State percentage of global GDP tied to these areas you have to look at stability and liquidity and volatility in all those things I wouldn't necessarily. Apply percentages in terms of percentage of market cap the percentage of global GDP figure out portfolio I think you have to discount that. Given the dramatic level of volatility associated with those asset classes for saint domestic stuff."

" Enough Mike in New York has -- most recent question there about Muni bonds he talked about treasuries and the possibility of a bubble about municipal."

" We've had an outperform on municipals. Texan and high grade investments over treasuries so it has been argued to move some money out of treasuries in today's other."

" It seems to make sense right I mean and in the tips treasury inflation protected securities we've talked about about because everybody knew. Cousins seem to think inflation's going to happen it's just amount of money."

" Happens I -- I don't think it's a near term risk that it may be a long term risk but it you know. The expectations. For inflation right now are so low for an extended period of time that it is a pretty good heads to the extent you have a view that it's going up them."

" Are accurate enough and guys keep the questions coming in we'll get to them you know it adamantly throughout the show on what was then went on. The investment questions credit cards a lot of people think speed connections to drop the the mean maybe that's a big problem we should really be picking -- For the rest of the year we're going to talk about it next right here foxbusiness.com. Are married to Michelle you don't see it live at noon eastern time every -- at foxbusiness.com. On places like Hulu or as a podcast on iTunes and -- hands -- education just joining us from Charles Schwab chief investment strategist is filling in for -- today who we fire now. And -- but it but it gave you believe you've been on TV for years been I had an anchor that's good we may have thought about the -- still. We're going to -- going to bring in now we're meant tell from the MarketWatch Wall Street Journal digital network to talk about the credit card industry and the losses that are hitting. Cut and consumers we've had you don't -- its interest in all the new legislation that's been put forth of course on this that's one thing people are talking about. But what should consumers be thinking about from your reporting for the rest of the year credit cards."

" Well consumers. Might want to start making sure that there that -- spending within their means and we could see. Before the legislation takes effect which will be in February we could see some higher interest rates -- even seeing that someone. And we've also been seen issuers. -- lowering credit limits."

" Guessing that as well that's it. Was an -- and kind of you junior dual -- feel free to jump in with questions also but you you obviously look at this -- and because it says there is this new legislation that's supposed to help consumers so that the rates don't fly up and running up. What should we be thinking about reliant."

" I'd like to see the help go to not only consumers but I think there isn't -- need to allow the credit card companies. To make. Judgment calls on the risk levels of there and customer and if there is a potential defaults -- delinquencies have that flexibility so I think. -- you you need actually to be transparent and honest and open with the consumer and make sure it's fair. But we only get ourselves back into the same problem if we restrict the ability for the lenders. To to make adjustments based on the credit risk of the used to."

" Right what do think of that -- and what what are you hearing again from the companies and I'm from the other side than on on on those types of issues."

" And bakery it's it's going to be tougher for them net debt going forward to re price risks. Because of specific parts of the new law which will prevent them from doing so. For instance on some of its existing balance. A -- can't read -- price necessarily that unless the person sixties late. And that actually if the person pays on time for six months them. Going to have to revert to deal of rate says it's definitely going to be trickier than an hour and."

" question and you know we we talk a lot about what the cut card companies are going to have to do to adjust to a more. Stringent consumer here. But what C exposure you know we were talking before you came on about the global economy in the rest of the world know what is exposure to the card companies is that. Is that a source of growth outside the United States given the constraints on growth inside the United States."

" Well defended depends how big their international footprint is. But the truth is that the entire world is suffering right -- The global economy is not in the British aid. And so it certainly did the car companies are going to have a tough time in the US because of -- an economy in and that's true abroad as well."

" That's interest thinks I mean it that at the end of the day though that and we talked about this a moment ago that the the legislation they're putting forward is supposed to help consumers but -- the credit card I mean I guess the big question is will the credit card companies find a way to make a profit. Without him defeating the purpose that's supposed to help the -- did they raise fees."

" Right pull back on some of the rewards that a lot of these cards offer is that is that on of that that tricks that they can bring in to make it more profitable for them. But it'll save me that depends on whom you ask them some consumer advocates are worried that. -- going powered car companies are definitely going to figure out some new tricks and traps and this legislation is really just a starting point. That more will need to be done in the future. But the card companies at this point are still just trying to keep up with all of the changes because they're going to have to do some implementations. Kyrgyzstan. In fact one of the implementations. Calls it better. She's the advancement instead of rates the rate increases will be going into effect even sooner than the rest the legislation those will be going to have to think in just about a month. So Philip say."

" Not before much younger I I also think that the bigger question -- over every time we do credit -- story just about every time we end up talking about this is just. The changing world or the new world in terms of how people Americans. Deal with credit and how much they're willing to borrow and what their attitudes are and how it may be different that was five or ten years ago. How much of that are you picking up it the people that. Or going from credit and debit or from plastic to cash in just changing their behavior completely."

" Isn't saying just this morning actually. A new report came out on consumer sentiment and in that report consumers said that in fact they are trying to pay down debt. And they are trying to hold back their spending and so it's scenes that the economy has gone through such a -- time that consumers really are shocked. And maybe they really will be. Holding back sending at least for a few years and even though. That's not really great they GDP and for consumption. In the long run them and might be healthier that -- where are living a little bit more with an army in. Let's put it I don't want -- issues it's been discussed is that because of the the leniency on the part of banks right now. To work out mortgages that there seems to be a trend toward people focusing now on paying off their credit card debt particularly as it frees up. Money for them to spend we're just on day to day living expenses not to glad I'm spending spree. And letting the mortgage takes second base simply because they know that there is a little bit more willingness. And there is the gift of time that comes as a result of the crisis where it is -- are you seeing that much. Yes a few sources have told me that this is something that we are seeing occurring in this is a reversal in the past. People are more focused on and making sure to hit their mortgage payment. But this is something that they're doing more of now because. Well especially if they've lost value on their they just. Don't really see is much the necessity -- much the point as making sure that their credit card is paid because that that's their lifeline for a lot of people."

" It is our Andrea thank you good story and thanks for coming on the show we'll I'll we'll talk to again -- mintel. We see on MarketWatch Wall Street Journal digital network you know one of the things this and we were showing what we're having conversations and the stock charts of the credit card companies. How do you look at those companies on it you know does that we operating in the new environment which we just talked about where they've got to figure out how to manage their costs and make profit."

" Well let me let me give me. Tremendously huge caveat I don't cut into negative -- right at all. What things that that we do is at at -- we have Schwab equity ratings of the trade stocks. In a very easy way to understand ABC idea. And that is advisable back to to school. And -- we found you know we get a lot of questions about. Near term things that are happening that could potentially affect. And industry and might -- be you know changing the quantitative model that derives these ratings as a result of that. Interestingly in in this this speaks more broadly we have found that trying to make an adjustment to a quantitative model that looks at things like momentum and risk and valuation. You don't. End up helping the performance of those ratings -- trying to tweak around these models because of the short term industry fundamentals because. The reality is that it is still the case it would ultimately drives a stock or arguably an industry or sector even market overall to outperform and underperform it's not so much the fundamentals. But what those fundamentals are relative to expectations. Right it was easiest just buying the company with the best fundamentals then you know. You can all calculated to be an easy thing it's not that these."

" That's what we talk about second in this and other broader topic but in the second half of the year and that its Q3 Q for the cops that I start to get better much better for companies are -- is that that you can make the case then. For Europe. You know higher stock market from here based on that right or is that already priced in people's life."

" Think summit and we we did get a valuation pop obviously off the lows of march but I think is we start to get greater visibility into. The latter part of 2010 earnings in 2011 particularly as you said because the comparisons get much easier we then start to -- bring valuation back down. Because of the denominator the starts to have movement in the right direction now the increase in valuation is mostly beat beat beat it -- because the."

" Some of our viewers are -- shooting in some questions were to take a quick breaking get done to his Fidel. But to actually talk about this Michael Jackson story which everybody's talking about but you know real quick in terms of sectors here's. She -- would you like these names homer in Springfield trivia column my homework. Anything did you feel overdue for a rebound. We I want that's overdue."

" Well I you know again we still have tech materials industrials and they'd been a bit the momentum sectors I think you're gonna get pockets where you get a little bit of a growth scare. No there's no question you're going to see some -- and things like utilities and consumer Staples we just don't think those. Pats are in sustainable upward trend at this."

" Okay fair enough we have a lot more still to come including you're never going to believe what kind of -- you can download on your iPhone can talk about you can hear about the story did you by the way. -- little bit little but racing to cut back on the coming up good how much your body just he's going to talk to us about that and we're going to talk about the story everybody's talking about Michael Jackson life. From California -- just a moment boxes of them. The music Michael Jackson fans really OK I admit I really wasn't that a huge fan although I think thriller was my."

" First sent to tell you my my my sister's going to be freaking out and -- she's just off camera here she is that a visiting from Naples Florida. I did we not. -- every move. To you that -- IBM and c'mon and do if you went on I didn't I -- even remember it but I mean we use to our brother and the two of us we used to. They'll have -- and put the like beta tape in the V I guess that I had that we could do. Every single move to that thriller video so yeah everywhere huge fans is more than just he -- to listen it was what I shocking things we got actually got the news from my assistant last night she scooped everybody. Really and that -- and we littler closer to insiders are both our blackberries we're checking we're checking -- times and just Colwin fox and everybody said cardiac arrest and but but I don't remember who had at first but."

" I update and I actually think kinsey in terms of reporting it had to death first and got it right. And you don't we have fox if that -- here have been were reluctant to going to go with until we knew -- slightly isn't sure but since he was right and got it and think about a quarter to six. Eastern time and then you know and just thought I was active -- only a few minutes -- terrible stuff anyway at least canals -- west coast correspondent you can pick up the story from out there. In terms of what people are thinking about and Louise joins us now live who --"

" Hey Connell well what people are thinking about I guess is what exactly was his cause of death which now obviously it's a question not by the that. And that an autopsy is going on and we should have a results in the next couple of Alice. Old -- if the toxicology report is replied at that could be weeks before we know I have. So in the meantime we else what about his financial state he was about to -- box on that fifty constancy in London. And backed by the company -- EG live who already put between twenty and thirty million dollars in today's concert. They given Michael Jackson at ten million dollar at vons. Which we don't know where that went towards the 100000. Dollar amount. Rants on this property behind me in the exclusive -- measles which is squeezed between Belli yeah and Beverly Hills. We know -- that Michael Jackson was between four and 500 million dollars in days. He took in about twenty million dollars a year about was standing well above that every yeah. IE he -- he's steady you career we know he and about 500 million dollars and then on top of that. Several hundreds of millions more from he is music collection which of course include The Beatles catalogue. So now we Oscar you know he was riddled with little -- during his life. And it's likely that they'll be immortal six to come in his did."

" And I guess that's true so what does happen now from the best here understanding released all that debt."

" Well you know I think the question is that -- he's finances have always been complicated. Even down to the point where we don't really know if he still lines up half of that music catalog because he did. Re structure a deal reassign me because he was in such financial stocks rise. Sony music. Basically facilitated. A 300 million dollar line with banks. And and what we don't know where -- his portion of the music catalogue which -- fifty the same way that that was reduced somewhat during that deal. And and meaningful way to what his payments -- on the HD live concert Sino AG. Was hiking and about 450 million dollars. From it for an extensive three and a half he would tiller worldwide -- on top of these London Constance. Now on -- EG live is looking at retaining the 85 million also in ticket sales. Two it was a sold out onto us. -- of people who bought tickets not to mention. The cost of the production and as I say between twenty and eighty million dollars that went into that."

" I almost wonder if they'll do some sort of you know. And benefit. Remembrance of the they have the dates already -- for those conference. Interest -- Pacific put that together all right Louise thanks very much you appreciate I want to talk a little bit now about his finances Tom in North Carolina makes a good I think a very good point. We should talk about Michael Jackson's lack of financial education. -- entertainers and pro athletes and -- it that I say yeah."

" Everybody and we believe it Schwab right now has such a huge push. On financial education and chuck Schwab -- founder and chairman. Is chairman of the president's advisory report on financial education and I think. Literacy in in the finances is so important week we get an interesting survey recently that found the 95%. Of survey respondents it was pretty wide. Felt that it should be taught high school. Now I couldn't agree with that more quickly and it's not really taught -- classes are -- budgeting and credit cards and compound interest the fact that we're not teaching our children this is really mine are. Classes would you do and what would you swear to start. I think you start with the basics you start at the high school level at least and you start with the basics -- you know most kids who get some sort of allowance and and the idea of savings and and compounding of interest in the way -- credit card works and all of those real basic things have a set up a budget -- we don't teach at."

" I mean it's way -- Michael Jackson obviously there were issues there in a million issues there but the the idea of that he went through this group probably the most successful recording recording artist of all time. Then he makes what is by all that's a shrewd business move on buying this catalog and Paul McCartney made up it may not agree with that but he bought spices catalog with The Beatles. Rights to it everything else how can it how could Michael Jackson -- all of that have gone broke how could he be hundreds of millions of dollars in debt."

" Who knows that there's there's a sad irony given that the crisis we are are still working our way out of was a debt crisis and and now we have this very unfortunate. Poster child in some ways for for that debt problem and aren't sad story it's it's."

" I've been saying at all there's a sad story and somebody and so many different ways in the personal stuff and and everything else all right we're going to continue your foxbusiness.com live we talk a lot about bailouts on the show and on this network in general. And our next guest says for all the financial industry bailout that you've seen in one year the financial industry's got more money. Then poor countries got in 49 years what that means and what we need to do about it next on foxbusiness.com."

" Okay."

" Among those insiders today kids just joining us from Charles Schwab chief investment strategist disliking TV. Anchoring more and more. This. The achievements achievements that she's going to move off towards I sent my sister that -- a bump out of the Senate to back up Apple but it's a much more you. So -- that's one of the piece of slow -- Anita -- as the North American coordinator for the UN millennium campaign and is that a fair kind of -- I did for the story -- coming in here is what you guys have looked at. The -- campaign is that. And obviously you're dealing with the with with poor countries try to get aid to these people who need it is that this financial industry bailout is more one year than almost fifty years."

" It is indeed it's about sat ten times larger in the fifth year since the world's been giving overseas development assistance the total is about two trillion dollars. And that pails in comparison today eighteen trillion dollars which was found over the course of the year to help recapitalize banks. And -- stimulate the financial system again. Until we're saying is that you know in times of this with the world economic crisis. Facing that largest downturn since the Great Depression meant that it's ironic come that we say that those resources can't be found to help the poorest countries from kind of overnight. About eighteen trillion dollars with content to help."

" the worlds of banking system -- is so so this is -- I want to. I'm asked a question but let me preface it by that I had to the unbelievably great pleasure of getting to spend some time with pot now. About a year and a half ago we had him speak -- one of -- conferences and both beforehand one and one in what he was speaking tour group he talked a lot about the nature of -- in what is needed and that. Date in particular a lot of these poor countries. Want less in terms of handouts and more in terms of opportunity to use their own. Entrepreneurial spirit to grow whether it's through micro loans so what is your perspective on. Straight aid versus just giving them the conditions to establish their own growth organic growth. It's a combination of both."

" And so its development assistance as a a helping hand as opposed to hand out -- It's increasing my access to trade so that those emerging economies. Can bring their goods to market in a fair and equitable way and it's canceling debt for those poorest countries so that they don't have this. Kind of cycle of indebtedness and they can actually use those resources that are available to them. To -- you know help stimulate stimulate their own economy and provide resources. I think there to their own people and one of the things that on -- works on he and helped start the one campaign here in the United States. Which has done just such an easy job without raising awareness and attention in doing Abbott can see in terms of -- helping to stop global poverty and we work very closely with him at the UN millennium campaign. And what an RR. The sole job is to work in support of them millennium development goals right and what they are it's it was a historic promise that was made at the United Nations in 2000 by all world's leaders. Coming together to say that they wanted to fight. Extreme poverty hunger illiteracy. And power women fight disease and protect the environment all -- 35. And the interesting thing now is this partnership this idea with -- bit which is -- and final poll. That both rich and poor countries need to work together so -- is an important part of it but it is not the only solution is certainly not a durable and lasting solution."

" You know I'm not and I can't name drop on on fortunately -- and although I think I'm gonna see you two in September. That said I have talked to and met Jeffrey Sachs at Columbia and I'm actually reading. One his book on poverty right now and one of the things that surprised me -- struck me about it and you know you can probably add to this. Is that the cost seemed daunting when we think about them. But when you when you put it in terms of how much it would actually need to be increased by country it's not as crazy like we we if we just a little bit more we can make a lot of but to make a lot of difference to --"

" Exactly it's about 25 to thirty billion dollars a year -- it in addition you know every year to help achieve the millennium development goals. And that's spread out by all the developed countries -- that's not only the burden of the United States alone. And that would have a tremendous impact and that's why we we gave this time the study tape to show that out of all of the development assistance it's only two trillion. And again you know 20/20 five billion -- pails in comparison when you think now this week we think in trillion dollars now. I'm so it's really not that much and again it's a question of political will."

" And it is a tough time for imagine you're really mean that you made the point about the financial industry. That we can talk a little bit more about that and comparison between whether we should have done that are not. Versus what we're doing for developing countries but the fact is we did do it and other countries have done that we've spent that money already so that leaves less for you right. It's tough."

" It is -- and increasingly now countries are saying that they don't have the resources that they had previously to gifted the developing world -- and the poorest and most vulnerable. But at the same time you know they are breaking their promises even in the -- times in in their early you know 2000 so. You know it's it's it's yes times are tougher but at the same time what we're trying to say it. You know 50000 people die a day of preventable causes. So you know we don't have the luxury of saying it will wait until the economy is -- and we really need to do something now to help the poorest and most vulnerable because they are being hit on so many levels you know the developed countries and emerging markets have really taken the lead in re starting -- the economy and and bolstering the international financial institutions but at the same time a real urgent. Demand is there to help the poorest and most vulnerable so that they don't slide back further into poverty and we know what can happen with that income to. Disease you know knowing knowing no boundaries put potential political unrest so to really important that we find the resources. To help support the animals will be a lot of help coming on the private sector side in terms of philanthropy thinking of things like that gates foundation right you're talking about multi multi billion dollar foundations. Certainly helps and awareness what about the actual dollars it's it's done so much in terms if raising attention and and and that -- showing people that they can have an individual impact as well see you have people like gates you know. Giving in changing changing their jobs attaining your job in in giving his life now to helping tech to improve that access to it to health and reduce poverty. But on individual level people are saying you know for ten dollars I can I add -- net. Which is then given -- to a refugee camp in Africa and somebody is using that at night so they don't get malaria and and potentially you know dot from those causes and so it's. Kind of the question of of the biggest you know the government's doing it -- doing it and then it's as individuals helping and one of the things that the crisis is showing that we can't do business as usual. And so there has been it's called them. Innovative financing for development and it's a partnership with the private sector with the technology sector with no -- Philanthropist all of them -- coming together to work to have innovative solutions. At the same time though we also say that ultimately it's the responsibility of governments. To ensure that those resources are are both Marshall spends and then and then used well."

" Now I know we need to do more that's the case being made in and that's it always is -- and there's more to do here but how much progress has already been made one of our viewers brought up the point that a lot of this debt has already been forgiven has it. And you know how on how much further do we have to go on what you citizens major initiative forgiven. Some of these developing countries death."

" On the well yeah a certain percentage has has been given -- pay down the debt that the challenge now. It sounds so at the G-20 summit in London about one point one trillion dollars. Was announced in terms of help helping stimulate the international economy. Of that about fifty billion -- set aside for the poorest and most vulnerable countries that concern is snacks. On in addition to development assistance it's going to be new debt which is issued to those countries to credit creating a new cycle of indebtedness about something that were urging not to happen. Because those -- and most vulnerable countries just can't afford it to have that occur. But in terms of what what the successes of other developments over or is the past you know decade or so. And it's been tremendous -- in terms of the that now like 88% of children actually go to school one point four billion people have access to clean water that 400 million people were lifted out of poverty. And it's really because there was this concerted global effort to head to achieve the goals the challenge now is because last year there was a -- food. And -- fuel crisis so. And that now comes on the heels that are trading the financial crisis. So it's at the stories now in 2009 is that it's really troubling time for the world as a whole but then for the poorest and most vulnerable. And now he's got to figure last hour week they came not something like a billion people now are going to go hungry. And that's just it's it's it's yeah it's really sad. And it's something that we just again we don't have the luxury kind of waiting not to see if things change. Right now at the UN there's a big meeting I'm going on about the impact of the financial crisis on developing countries and ambassador Susan Rice is they're representing the United States. President Obama will go to Italy high in two weeks time tick -- at the G-8 summit. And he's expected to come to introduce a major initiative on food security so those are real ways in which the United States on government is is working in support -- the goals. President Bush previous administration did so much shop for Africa in terms of HIV aids in and malaria listings. So you know I think sending the United States has been pushing -- toward."

" you're at the millennium campaign -- can I ask you about the UN general little bits are viewers are brought it up I'm not surprised because they -- and we've talked about this issue in the past in the UN gets a bad name I mean. It has over the last decade or so really been kind of beaten up on certain political issues and -- good friend just anecdotally works and development. The UN is working in Africa now understood to get that there are there are some great. Work that is done in certain areas that doesn't get talked about. But is it difficult for you sometimes to do your job because people say I want to give money UN they're only going to squander that attitude that's out there."

" I think and -- especially now because of the financial crisis and this notion that you know either it's the G-8 two or -- money which is responsible for you know responding to the crisis. And now you have the G1 92 which is the United Nations which is kind of the more. Equitable -- to discuss these. These issues at the same time and it's that the UN because it everyone has a voice sometimes is typical to have get your -- it and actually. That they reached that. But I do think I you know we we focus a lot on UN in terms of peace and security. But the UN as any that providing development -- assistance and and a framework for discussion. Is is indispensable. And I think increasingly now as Americans we're we're seeing. That we are a united sat world and country cut and we have to all work together. Because these are global problems requiring global solutions and the UN as a really good format -- To have that resolution."

" Okay -- to thank you gotta make this -- won the last thing on the touch I was this comparison is we started with that by comparison the Wall Street on what you would. Jump in with that listen to any degree that we we we spent all the money on this elephant and a you're just making the point about. But didn't you could you could argue pain we have to spend this money so the good that the developed countries are in good shape so that they can help out."

" Well one of the things that we realize and I think it's going to be a long time before we're able to look back and say. This was should have been right about the should've let you know some of these companies failed a so a lot of unanswered question you won't get answers for quite some time. But you -- this was more than just the US crisis it was a global crisis and we're now dealing with the fingers into the emerging world to a potential currency crises so. It is not hard to argue that to some degree we needed to to try to solve this problem men and bed up so now it's been with a lot of money. Yes but yet this was a global financial crisis has not to see US crisis."

" Okay I need it thank you very much for coming in again and you'll keep us updated on the on the campaign I will thank -- much and if you -- information you can go to our website which is endemic poverty 35. Dot org and 35 is when we hope to achieve the millennium development also look at I hope so too good luck good luck with everything will put that up on our -- so people can see it Anita Sharma thank you very much UN's them when he campaign. Okay we -- these bar codes in our lives and you believe how long you've been using for. They -- 35 years -- guess we're going to have this story of the bar code coming up next and the apps that you won't believe that are available for on your life. That's the story -- the city for your foxbusiness.com life. A similar take a brief break -- for second catch her breath about some of the comments coming -- you noticed and we retirement with the need to. That President Bush there is you know that was just left office. She was giving him credit for some of the work he's done and Africans not what you think about when you think about President Bush -- maybe we should not get."

" 01 of the one of the things that that almost certainly have that conversation is he said look you know there's so there's a lot I would criticize that the president was president the time I. Not on message city's troubled aid to Africa during his time in office so -- you know most people regardless of what side of the political while they sit on get him pretty high marks for that --"

" What -- Africa you absolutely so that that is an interesting point and that was don't want one of our viewers brought them up. Okay Bob Sanders is here VP had advance data capture and we were saying just a moment ago that when he noticed the 35 and a -- 35 anniversary of the bar code. So happy anniversary darker than you brought some props with. I did I did it's what's the first item Barco was ever used it was actually a Wrigley side chewing gum juicy fruit it was so stands. 35 years ago today. In a Troy Ohio. More supermarket. And it was kind of a seminal event if you consider in the ensuing years -- bar code has really transcended our lives. Has become a staple and has been adopted -- and a wide array of industries on a global basis we could use it everywhere."

" And I assume it's used as much on the inserted the."

" But also for inventory management to right absolutely in fact that's one of the greatest benefits that can be gained through the technology. Is keeping track of your inventory throughout the supply chain. And enables businesses of all types tell -- to supply chain which provides."

" You know better profitability that are operational efficiencies which I think we'll probably -- we know we've had a record breaking plunge in inventories and I think it's because we've gone from answered just in case inventory management and now just in time through. Technology like this so I guess I would wonder what wait what do you think you can get an equally powerful pop. Because of this lean inventory management when demand comes back."

" Yeah I mean certainly."

" The technology. Helps in the lean manufacturing. Environment. You know I think you -- to continue to see further gains better productivity. Available through us through the technology across that array of industries. What's next on the front mean how are things improving right now in terms of how this whole. Industry changes. What we're seeing further and further adoption of the technology we're seeing the technology evolve life. In fact brought a couple of props here to give you an idea that radar gun on the -- and I like the original essay is is the original here Motorola. Through its acquisition of Symbol Technologies has been one of the pioneers. In bar code scanning for over thirty years one of the most significant. Inventions was the first hand held laser scanner. Prior to that you know when this like Harrison. That was and not 1983 -- so this is circa 1983. This really allowed bar coding to transcend just retail grocery and get into all different industries that were that were familiar -- And so what was stated we are -- early 1980s. Basically to box of electronics. Come through the wonders of five semiconductors has been able to -- into a device that's that's small. Which is actually much more powerful. Much less expensive. That's enabled it to be adopted by. Really the masses and that's one of the areas that we're seeing going forward he wears sparkling continue to grow it's not just fortune 500 companies. It's even the smallest and cities are being able to take advances in technology. And get the productivity benefits so that will continue to seek growing. We're also seeing. It changes in the market itself so this is your classic UPC bar code yeah. What we're moving to a two dimensional wore coats basically what they enable you to do is include much more information. And that too is where we're seeing the technology get into areas that it hasn't been before breakfast no long or my tethered to this as a pointer to UC -- zoo one GC."

" Up writing and hold it up a little bit so we didn't know you -- I. I have a did not question and so little -- when when somebody is -- something it doesn't go through you know they keep trying and trying and then they end up putting the number in manually. Right the new -- I -- have -- okay always -- first of course but the other one doesn't have a number so. It's they're sort of yeah he's -- you guarantee that there's never malfunctioned what happened."

" Well it is a very small chance of very very small chance -- you want to theory and so it's sticky query what happens at in these two dimensional codes there's something called error correction and I'm sure would -- you guys adapted into the bits and -- of it. But unlike these bar codes we can actually reconstruct the fears that if there's a problem with that or cut because you're coding data both in that in the vertical and horizontal. Pieces of the code -- watch that one better why are we changing that -- again. Well this want to -- much more information -- classical UPC bar code is really like a license -- on your on your core -- it's meaningless and -- database that retrieves information about the code. This -- stands alone. This could actually is the database so it's opened up whole array of new applications in industries like forma health care. Financial services side -- to -- just couple. Top item one of some our viewers always know more than I do about just that every type -- and I think Tom in North Carolina bar coding expert. But he was asking about the two types of bar -- before you brought up that must be exactly what you're referring to was nothing else there on that front right and I'm sure that's what he's asking I think that's how -- what's. -- RFID. There are -- radio frequency identification. Is another technology and what a data capture technology think of it as a talking bar code is the simplest way to phrase it. This requires me to basically get a line of sight and read that code in some fashion. DR ID tag is basically using radio waves though -- so I interrogated."

" It sends back a signal via radio waves the benefits RFID again online site."

" And I can actually. Read multiple items near simultaneously I don't have to line up of Clark of skin with -- good point Anthony -- RFID -- pointed structured as our FY is starting to become popular health care. All the help did you and this is on our health care debate where we're trying to figure I as we -- elect I was going to ask the question about whether -- cuts come into play as we -- bluntly as we look to move health care into electronic. Record capsule to both both bar coded as well as our idea I think we'll have a plight. -- hype machine."

" After seeing applications and full with the healthcare today just around that let's administration."

" So ensuring that assists patients in the hospital. Are in fact getting the right medication in the right dosage at the right time to seriously it did was introduced might have on our -- what we -- carry around a card that has all our info on it -- just in the -- when you go to the hospitals that -- wolf. A lot of hospitals today when you step in when you when -- admitted you'll get a bracelet yeah. A month most of those bracelets are now being bar coded so they are identifying you as an individual."

" And then the medication that's being dispensed this -- the bar code on it as well so what's getting you behind your bracelet. Scanning the the madness. You know quick check can be made that in fact you are getting the right medication at the right time in the right tells me -- I think medical records as well. Getting away from a lot of the paper. Did you tossing out as quickly as possible I think is going to streamline the processes can reduce overall."

" In one place. I wonder if that's fair enough you know there was that similar concerns when the bar code while first came into into being people were concerned about stuff."

" A privacy it's this Big Brother watching what I'm purchasing."

" You know I think over time people realize first of all the technology really can't be used in that fashion inseparable it's it's it's really about efficiencies."

" I think RFID has had some similar. Concerns but I think at the end of the day it's going to prove to be much like the bar code there's really not much you can glean from and RFID tag on -- medical record."

" Are on on. Bracelet. Or on hang today get -- and -- All right Bob thank you very much for the -- good story 35 years from now all right so thanks a lot for coming in on or let -- bar -- is still -- sales overall still here -- senate ethics at this restricting all right Bob thanks a lot. All right we so we're going to talk about the and the after the day so to speak on the iPhone I have an iPhone but I do not have this apt. One of the main reasons is because. Well my wife and I have both of iphones and so we share iTunes so if I get a map. She's going to get a check -- automatically right so if you can find out what the -- we're talking about -- she's not going to want to get this or find out that I -- Apple for the first time has now come out with adult themed acts apparently. Essentially. After pornography. On Apple. And that's what you're trying to download -- now what's your body's going to come here that's what I'm saying I'm avoiding downloading at least until we -- next time I talk about this. You know a kind of reminds me of the story though is that there's like. -- like 50000 acts right that Apple's made available and -- close you've been following it but the palm. Prius coming how many they've hardly any acts but does he meant what you said he's -- and -- that -- but I."

" I have an I touch and write my son has never had a night -- I touch. Got a hold of it and within thirty seconds have downloaded like fifteen apps on deceived and it's a yes like they just inherent."

" so what's so funny out of I have a four year old that that knows exactly that means we literally didn't tell her how to use anything until you know shall bring up the pictures and she's going like this for the fingers. How did you know that it did it she goes like this and switches from an expert in everything. She knows exactly had to do it Soledad it's funny that I think the Apple iPhone and alibi -- they were me kind of with kids in my I think they were there pretty -- pretty smart that way. What anyway so that was who -- kinda -- body and that that's no big deal anyway. That's the kind of apps are looking at did you have fun I. I have funds a comeback can do it again sometime Mittal -- to take Fridays off -- you can come back every front back up and leave people without one piece of investing advice for the rest of the year."

" You know have a plan I think we take too many investors trying to wing it they'd they'd jump in full. But with both feet especially with things are going well and they don't have that the bigger picture in mind to have a plan and then try to be discipline around that."

" Okay and was anti in case you missed part of the show live -- and talk a lot about her investment strategy at the beginning to show you can see the whole thing. On Hulu and well to give Apple and iTunes has podcasts so we will see you on Monday. But another edition of foxbusiness.com -- general will be back was only joking and we'll see Lucent as a guest I'm sure -- thanks again I."