Clunkier Than We Thought?

" Again we'll let you know about Twitter will try to hop onto the bed and right now be bad the market to relatively -- had a big jobs report tomorrow an anomaly the markets are."

" Yeah and then then he added jobs report today that was a little better than expected as far as the number of first time claims last week continuing claims go up a little bit. But this is one of those things that even city by city -- you go around the country and that jobless rate continues to go up in almost every measure."

" Said that as a good point it seems also that it's getting. Had a little bit more like it's a regional stories can't we can talk about this economy as in this in these sweeping ways that we have a some of these data point. -- Tom Powell is the chief executive. At ELP. I capital he's doing his talk more about the markets and everything else -- think about that we are you seeing from different investment opportunities in the region to region is it really isn't this just one story for this economy. Or like they point out really. You know from case to case."

" Good morning -- it is absolutely. Real estate and other investments are micro market. Opportunity. For jobless claims are sparse data on national level we are starting to see some recovery in certain markets. But overall. Now's the time to be looking for the investments may not be the time to act on the investments but it's definitely -- look where investment in Iraq. Probably near the second -- let us into this -- housing and housing is probably with Fannie Mae Freddie Mac and -- financing available with entry level housing shooting up. With lots starting to be absorbed and there's nothing in the back so there's probably a good opportunity for a number of master's in actually some of the worst markets are Southern California -- a recovery. Vegas may be a ways off Florida Florida has some opportunities. You're going to see Texas probably stabilize."

" When you go to these markets and you're looking for opportunities you're talking about investing in. Real estate or in companies in the stock market that are involved in home building or those sectors."

" I think -- look at both I think -- with alternative investments she needs to take me a line item approach to it and say what is of value today. And that's the reset we have to look at instead of saying on a global basis we need to do a reset of our minds and say. Does this make sense so are there certain builders that fundamentally have enough cash and enough opportunity. Then that's a good investment do they have the right strategy to make money then that's the right investments are being in the right markets and that's the right investment. Let's take a global approach and say oh we're headed towards the recovery of the stock market booming now's the time the vast. That's partly what got us in the challenge without the the discipline to him to research each specific investment."

" You know with some of our viewers are weighing in saying -- that they don't expect tomorrow's jobs report to show anything good in fact the Wall Street really didn't expect that as well as we expect the unemployment rate to go up but we don't know how high necessarily -- I do you think the market soaring price that then the unemployment situation more than 10% even get if he gets close to let's say 11% unemployment has a market already. You know taken that it and spit that out."

" I I think the market has been put in reasonable numbers I think what the market is not ready for as any surprises. Confidence has to return to the marketplace for continue to grow. Confidence in the capital markets to start doing investment. Right now this is kind of a tenuous point of moving up. -- market may be overvalued from a standpoint of what her earnings truly going to be. -- business owners around the country they're still looking at who and where do they still cut they don't see -- right away."

" And we are talking about that this -- this is why consumer confidence went down again. This is why you're still seeing people worried in this spending numbers we had we actually showed they were down you take out the rising cost of fuel. People are really confident yet even though people are trying to say that what we're reaching the bottom of the market is getting it better. The average person I don't know is really convinced yet."

" But you know they they see their neighbor the that has lost their job they're concerned their employer is coming back and saying we're going to take a 10% cut you're gonna less vacation time we're going to expect more out of you. With less pay and that's what they're seen on a case by case basis yes the news is coming up from the government insane. You know hope everything's getting better you need to feel confident but just like that giving a shot in the -- said Hussein the reality as. Our lives. Need to be reset we need to take a look and say okay pare down our debt. Either refinance a mortgage modify the mortgage get into a new rental whatever it is that's on a case by case -- basis. And the consumers are continuously. Optimistic -- what I see."

" Yes interesting point in the last journal today. And I want to bring that up as most talked to little bit about overhang out of Washington. The Wall Street Journal says that it although retailers' sales numbers are down you know people are still shopping at places like Ross and TJ max. But it would they think is that elicited a government programs and sentenced to buy homes for example I've. And sentencing by the cars the cash for clunkers program that that actually could be taking discretionary spending away from other items. In the economy say do you we -- a lot of strengthen the consumer discretionary sector regardless of this especially in this little bit about recovery since -- bear market rally that we've seen so what are your thoughts on that."

" It was that I and I'd agree it it's not the people aren't spending money of course people are spending money it's they're being more cautious about what they're spending money on. There was an interest in -- in our local paper today about the cash for clunkers that it's actually hitting a local repair shop. And one of our -- senators said oh that's sour grapes because they're just not benefiting from it. Well when did they get their government handouts and that's where a lot of the businesses are looking at this -- okay people are down. Our our reset in their spending habits they're not necessarily shopping at the high end stores they've dropped to a target if they were shopping at a Nordstrom's but. Does the shopping is still happening it's how do we make money in that type of an economy what are the right investments to be making. And it's really looking at the consumer confidence if confidence is not there capital -- returned to the market and if capital -- return of the market we have no growth."

" You know today's debate here is Jeff from Baltimore has a question he -- why do we rely on these consumer confidence surveys so much how many people do they really sample. How about try to price the market based on fundamentals unemployment that -- housing value is down what do you -- to --"

" Jeff what I think you're absolutely right I think that the consumer confidence helps lead. The politicians to say okay what money do we need to release today to trying get more votes and and and that's probably pretty pessimistic view of it. Funnel the cash for -- is truly bad in my opinion it it say okay -- market segment are we going to throw money at today to trying to get people to feel better. The fundamentals are there in certain ways the American population. We have a good work -- the people that have been laid off. Many of them have found new jobs they're. Perhaps under employed but they are doing activities to be productive and as United States gets into a productive mode we have better investments."

" Big people getting on an outside of the comes out getting it people get a little tired -- about all of the movement in the cash for clunkers hear the bailout here -- health care reform is -- little government fatigue and all of this process."

" I think there's not only fatigue I think they're starting to be mistrust. At a larger level which is not necessarily bad the people should mistrust our government and make sure that we have. A watchdog over that government and are there are watchdog services out there but the people don't pay attention that they pay attention to the simple sound bites. How we need to pay attention to what the government is doing and understand how it affects us not just today not just in the short run but in the long run. We have to have that reset all overall as a as a country and say. These are fundamentals these are what got us to this this opulent life that we live and this is what we need to do to carry that into the future."

" What you know pay as you say we should. Maybe not he said we should not trust our government this is democracy we elected this government some of us voted yes some of us voted no. We'll -- we selected them in power Christina Romer came out today economic advisor in the White House she says that the recovery act is working the president going to do everything he can do to make sure that the economy. Stays up and running you Rhode. This book standing in the rain about how to survive this economic crisis. Still these specific had a we do at this is what the Washington is saying they are they elect officials and they're going to be either for the next couple years so. So glad you don't miss stressing out she doesn't make us survive the crisis."

" The -- Jenna mistrust in the government is not a negative statements. The government mistrust us the people in general mistrust us by putting. Regulatory agencies it doesn't say every business person goes in the business or refinance is a bad person it says we're gonna put checks and balances and there. Not trusting says is kind of -- it even the old Ronald Reagan trust but verify we need to see what's happening with the government and say okay. I do believe their intentions are good but what are their actions and does that does that resolve into something that is beneficial. To the country. Based on fundamentals or is it simply. An attack to get the confidence level up and get -- votes and and I don't know I don't have the answer to that I'm saying that's what I mean by mistrust. By what we need to do. Each of us as individuals how special talents and in my book I talk about. Take those talents look around and see how you provide the greatest good to the greatest number of people. And when we do that. That's the economic engine behind the United States. When we do an album we have that reset we start producing we start bringing out new products we bring out new ideas and our country grows so -- not about the government."

" You know what you started great conversation are a lot of viewers are out weighing in on that time you're coming just after reading you got -- hot August nights out there. He did go to bed I have been yes OK just wondering you guys know got his nights right that they got. Antique car show out there -- we're going into our next segment about cash for clunkers out. Yet I'm president I wish I would stop I was out there had seen that but I appreciate talking to misdemeanors -- talk against him. Thank you Dave thank you -- all right time county executive at ELP capital have you been so hot August night -- not in the hey it's really that the coolest car old car show out there anyways. Vacation -- he'd sometimes."

" where I used to be opened a New England there will be you go by and like McDonald's on Sunday and then these all these anti --"

" As badly as we get we get it because I've been but has fancy cars and family right those are not the catch up on this program -- hope -- I don't Trinidad where they talk more about that program -- moment rich -- sense coming up next."

" Very rich Edson joining us sat down and DC for the latest on the cash. For -- program. We don't think there's any of those anti car's going to be turned -- rich."

" Not depends on the gas mileage that's on a definition of antique but I don't think so."

" Okay. So -- what I mean what's going on today we even hearing is more money going through the program is money actually there are ready. And where where we go on from here."

" We'll get it today the Senate has two big pieces of legislation it wants to of two big issues and that's take care today the first. Is what they expect to be judge Sonia Sotomayor going to the Supreme Court the have to vote on that today and in the second half of that. -- take a couple of amendment votes and -- move on finally. To vote whether to take two billion dollars from the stimulus plan and send that over to cash for clunkers they are expected to do that late this evening and then it like."

" The house today are out of town. Are you out of county -- that -- that's it we sat opposite. Humor -- I'll see you tomorrow I'll be here tomorrow at -- yeah. I had nobody is a Cessna. It did it's -- overall the tone down everything that had -- bad or washing their hands of a lot of these issues at me. Im not washing their hands of the issues but looks like we're moving from. Wednesday's the next said that that nomination is you you said for cities Sotomayor. I becoming official now an official approval by by by congress now headed to the president the money for their cash for clunkers -- remains out there. Kind of drifting. Wondering what's going to happen after recess."

" I mean legislatively. They're going to get these two things done they know they wanted to get it done this week because if they didn't they'd be left hanging for three to four weeks until these guys get back. After Labor Day you know now they go home and they work on messaging and you've seen all that's happened with the house on health care. He -- some of these folks are holding town hall meetings. Whether they're plants are not people shouting questions. And and are genuinely angry slot people are genuinely angry. About what Democrats are trying to do for health care so there's this fight going on here. It's already started with the house it will begin with the Senate. When these folks go back to their home states they go back to their home districts. And they're going to continue to hold these town hall meetings. Democrats will message and they'll say look we're going to reduce costs have got a great plan we're going to finish our work we get back. And opponents in many of whom are are are genuine people who have genuine concerns about this type stuff. Are going to continue to hit on that will will be seen that all throughout August."

" Back to this I don't know rich when it comes to -- so compromised that. The president wishes he says he wants to have Republicans don't go without looking if you -- do there are three key Republicans he's meeting with today he's meeting with this gang of six. How much of a shot that they have for the GOP to have a say in this process."

" The let me let me give you let's start from the very basic -- right now the Senate six or this gang of six it has three Republicans on it. That's on the Senate Finance Committee. So far they've made some progress but they have plenty of work to do to come up with a compromise version. Of justice and the senate finance bill that the senate finance bill would have to go up against the other committee to help committee they've already passed a bill. And there's a good chance that those bills will be reconciled and that they'll be some other deals made but. Maybe those deals won't be enough to keep those Republicans on let's just say that senate finance bill does come out the winner against the help bill and that's not a guarantee. Then it would have to go up against the house version. Of the bill so it's looking more and more you look at the long term wrote in this process. It's looking less and less likely that in the end they're going to be very -- many Republicans supporting this. So public."

" It got you know yeah did that well Rick thank you very -- trade says I need a chart yeah. -- an -- all out drug and -- a bad thing that it was sort of slow -- going to now granted that's an an easel and irate with the IC CN big semis. I says we're going to move on -- attacked Mike Wilson he's executive vice president. Automotive recyclers association advocate Mike -- is we're talking more about the cash for clunkers program and we got talking yesterday about the actual environmental impact. I have this program because -- no intention is to become more fuel efficient as a nation. What what is your assessment of the environmental impact."

" But -- it okay as far as our association we've been up on Capitol Hill called. Past ten months trying to. Bring home the point on environmental effects this on legislation. As automotive recyclers. We are dedicated to view removal and and reuse of automotive parts. When you recycling green -- use it you save a lot of energy my values instead of having to produce a new part. How we don't believe that was really factored into the equation. An hour and we're looking at a lot of -- engines from the program. Being destroyed. Those engines could have gone to low income folks that aren't going to qualify. -- have the funds -- to buy new cars and it."

" I really think this straight in many ways you Jeff Flock was talking about that -- a few weeks ago about actually that the dealers have to destroy the engines before they actually get them -- the whole car. What what what disappointed that."

" What that decision was made at that the Department of Transportation admits. They were concerned about fraud and that occurred in the German program. They wanted to go up thus far up the food chain on these vehicles to to make sure that that that the possibility of problems caught off. It's not something that -- we were pushing for not something we agree to that I can understand. Why folks had gotten it decided to do that. This program was mandated that DOT put this out in thirty days. And on the thirtieth day. And had to be a system in place to address these vehicles now coming into the dealer -- and it was."

" Fifty fair because the Friday it it seems a little bit unclear to me so where they just did today happens yeah I am -- engine says that dead they can't resell the cars is that is the engine. Being completely destroyed the evidence that the car and fact with a concrete that was turned and."

" The end and have to be made inoperable at the dealership and that requires them to put -- sodium silly came into the engine Enron and tell locks up at that point. It can be transferred to a professional automotive recycler of scrap processor and then may have. Six months to pull off the other part other than me and the engine and resell those parts."

" walked us through this I turned in a car on my clutch cargos that dealer I get my new hybrid whatever. What happens to they may be disable the engine and then the cargoes to wear and then what exactly happens to this."

" Of the delegates to decide. -- he has possession of the trade in vehicle. What he's going to do he has seven days once he receives his money back from. The government. To go ahead and get that to a certified disposal facility. What has happened and that in the first week is -- been a couple hiccups so we have not as far as an industry receive a lot of these vehicles because. The guild has been very nervous because of the EPA fuel efficiency numbers have changed some of that qualifying vehicles along with me. The concern of funds -- Actually paying now the deal is back for some of these deals that have been done over the first week so the deal has been hold on to these these vehicles. Way to make sure that that money and it hand from uncle Sam. Now we'll start transferring those vehicles there's a new requirement based on amendment passed with passed last weekend by -- up. That the deal lasts seven days once they get paid. They get these students disposal facility once they get to a disposal facility. On the floors will be recovered from those vehicles that freon will be taken out the Mercury switches from the hood and -- will be taken out. And then it as far as our energy goes if we get these vehicles. We will sat down take a valuable parts off of them. Put them up in the inventory at six months are. We will have to be we are required to. -- that vehicle and then sent -- onto the shredder. You know the -- only got -- that's only four years old five years old is not that bad and it's only a 4000 miles doesn't matter. Yeah we don't know exactly what the vehicles that are coming in and now are not what the range is -- over here in spot that tax back and forth on that. There are some ones that we wouldn't think would have come in under the program again the most that the the consumer's gonna get this 4500 dollars for that trade and so anything above a trade in value of say 4500 is probably not going to be put into the program by the of the auto dealer anything below that will. Probably come into that process. Again there are a lot of good vehicles being turned and saw one of our members up in the Chicago land area. City receive it at 2001. Jaguar comes word that I -- yeah some of these things. -- NSA earlier yeah yeah here earlier question yeah entirely question get an idea on the on antique car lobby. The antique car body got into a 25 year restrictions so they need to be over five years cannot be put in under this program makers there are a lot of money."

" Eight I hate this sit -- personal love mine and love those old cars and that the -- had seven might they go you -- that 68. Camaro and Michael rides that I don't think he's for -- it and get credit. I think that it really becoming a part of American history -- we see with our automakers I -- there was an article in the Washington Post yesterday an editorial. I was talking about the fact that even if it's on refrigerators for example you take. Your old refrigerator you turn in for more fuel efficient refrigerator you get -- a washer and dryer. I bet. It actually creates more of an environmental problem because you normally are upgrading to -- larger items. And the destruction are recycling. These smaller item or your your order right and takes a lot of energy as it is Tom was laying in on our board was saying listen they cash for clunkers program is that is a net zero. For the environment what's your -- assessment is it a net zero or is this an improvement and not an improvement -- aware -- it."

" Fall. I said there's any improvement has got to be brought in miniscule again as we were. Hop on -- Capitol Hill early on this year I wish we knew that the focus on environmental facts because we were touting what are initially does. We think that there would be a lot better opportunity. To get that energy efficiency. Improve how how my -- specifically to get more efficient ways ways into the system. Well -- industry -- on average is 85 million barrels. Energy savings per year by using recycled parts instead of adding to produce new parts. If you look at the collision repair sector. That uses 11% recycled parts if you have consumers out there in America. Telling their insurance company -- their collision repair facilities to use. Recycled parts instead of new parts because every other part on that vehicle isn't it. It is used for. You can you know double or triple that UC's. That's going to produce a huge amount energy saving mother just the use of those parts and that that does and that's starts without even one dollar of the federal government. Putting that towards a program."

" Mike what about there's been a lot of criticism by people who don't want this program that. That this is just benefiting the auto industry and that people who don't want to buy a new car don't have the ability right out of my new car and not getting any benefit from this. What about your industry you're getting all this new influx of inventory is this -- benefiting -- like."

" Plus. I think it's it's too. Soon to say since these vehicles aren't coming and."

" But I I I look at the basic economics 101 supply and demand. If you take out you know once these two billion is probably pass this afternoon you're looking at 750000. Engines that are going to be taken out of commerce. Those engines were bought and that would there are number once I should point that out probably 3035%. Of Fed -- where specifically is this do you sell these items."

" These items we've got two segments of our industry we got a self service sector. What are the general public comes down with their own tools pull these parts also vehicle come to -- pay for it take it home put it on to their vehicle. The full service sector of our industry. And is typically get there vehicles from total loss claims that company and -- salvage auction. And then our members along with folks unfortunately from the general public can come in almost total loss vehicles and then on on we get those products and we dismantle. Twenty to forty. Parts half of those vehicles put an end inventory in Anselm back to the insurance company collision repair facilities in repair. Vehicles -- good candidate I imagine that's right -- is mostly domestic sales. As far as I know they are. Industry today is global weak or an international association we have members and fourteen other countries in the US. Parcells are going out in containers left and right out of this country. Every day the Internet has made our industry. Doesn't -- And it's just amazing the growth in our industry over the last one earlier -- scrap metal -- it comes back says his new blackberries he thought that says every. Yeah but -- but there are also part yeah parts that are going overseas and actually hold vehicles going. To Mexico Central America and then over to Eastern Europe where the the labor costs are so much lower and so are members of -- a lot of product over the last five or ten years based on those. Vehicles going out of the country now that is also raise."

" I hate crime I know how his eyes of those parts and they can be tough some times said I'd do great great service my can be appreciated recommended that you and see some of the stuff yeah you're head you're all right you are you know it's about me now it's about me miss -- we'd love to have you. Love that it might my -- an executive vice president automotive recyclers association really great insight Mike thanks so much. I think you. I Berkett eyes begin being on scene Jeff Flock has that definitely the op corner market and -- and -- yet here we go -- exactly here we got there. I think I'm heading I'm."

" Sentinel Bob wants to destroy a clunker today that's what he wants to go ahead but that it would give back shotgun fire away. Got a American made cars they're not easy to break these days there you go. Clunkers but they the the clunker that has been so successful we got somebody cars to destroy here. That car dealers are running short. -- inventory comic -- good friend of ours riverfront Chrysler Jeep and dodge out here in north Aurora and it which is an auto mall -- you have been -- delivery of new cars and swing. Since the end of April. I mean full truckload full colors right you know after the bankruptcy a lot of the cars that were in the pipeline when they went down the -- went down. They -- now but nine of them. But I haven't had the big influx of 304050 new cars and I was going to say yeah and you're ready for you need -- to ensure that we we see a lot of clunker Syria got the Ford F 150s and all the rest but you've got -- look at. Were clunkers for new cars almost we've got to get -- we've done 29 deals and then done in my opinion a wonderful job. You know with everything -- have a great and yet we have to have you here and Jenna is -- is and Dave here is that is that the catch as we walk over here we see. Not enough new cars. These guys haven't gotten a delivery and a while meanwhile Toyoda. Nissan. Honda. Those guys did not shut your plants down my Chrysler didn't like GM did bother went bankruptcy they've got a lot of inventory so. They actually start. At a position of strength here that may be one of the reasons they're actually outselling. The US automakers because they just have more inventory is still God's."

" When I was also has talked Jeff that this might actually just be putting sales ahead like maybe it's only gonna buy car in six months now that are going to try to buy it now and maybe this doesn't really -- the car companies right away anyway you hearing. That's for many of these little -- in."

" Yeah you don't tend to think that's not so much true because a lot of the cars that we get in terms according to ask. Let me ask all that because he's obviously get a better sense of that I have but I talked a lot of dealers to. That that that the criticism appalled that people. You know are just buying cars sooner than they would have these -- pull throughs this stuff my sense of it is at least -- People wouldn't have bought a new car anyway right that is correct these these are primarily. Used car buyers in my opinion that it had a cart for awhile. Today that the current prologue that they have actually bought a used car into a big turn their clunker of a bomb wrecked it certainly about going to take another shot down. Yeah they've they've done. Primarily these are used car buyers and and to turn fire from the use card to a new car that -- stuff that's what you don't know and that's the whole point of trying to keep everybody in business. -- American cars tougher than you thought -- Jana. He thought Bob was big and strong you -- they --"

" They are cruel man -- yeah. Yeah -- ever really thought that about god jacked up towards my mouth and that you are our viewers are really. Our fear is asking if he'd -- not -- equally harvested the American cards then Bob likes."

" You know that's a very good point Bob do you beat up on all the -- it clears this an American Japanese thing but this is an American thing actually -- love the Japanese. -- as the Japanese I."

" It might be interesting get it it would be a very good at cathartic therapy session for. All of those frustrated by the economy forget that bringing these conquers sin is just happy marriage. His brain people and eleven smashed some windows you know."

" That is a great idea -- you know I believe we found these windows are hard to smash though you might even get more frustration. Bob let's try to brick home with a brick earlier I -- talk -- if I had yeah. I think that's going to draw blood on them so different about this thing. -- you'll probably want to work but I think it's tougher than you bet that isn't Pablo."

" Oh isn't about it marriage got training this city they remind viewers CBS and it it tough guy right immediate."

" He is a tough guys in marathon training and now he's gonna actually run that -- whole what do you do without -- Obama."

" Don't -- that's terrible he's gone but at least it's a tough guy. Yes and you okay thank you yeah."

" It is very -- step that we actually get any of that again but actually break something let us now. Jeff Flock in Berlin Wall and the dealer lot they were all -- his composite. First this your first experience with Jeff Flock. Limited radio good."

" And Saturday and he looked and blood yeah mr. Yang can't walk around on the radio as well yeah that's that he loves to roll -- of conflict fix up this our viewers love --"

" I don't work -- here's a little bit no pun intended there in the cash for bankers that. When I think you were talking about like yesterday where the reading. Companies out there and what needs to happen to create better financial security for all of but we're going to continue that conversation. In this moment. Very we're about halfway through right now markets are still in negative territory Dow's down about thirty points -- really kind of -- conversation we're having yesterday about the rating companies and how. How I -- feel about what's going on with these rating companies and with government involvement to make them better change the way that they're actually doing some of their business. Remember the rating companies provide a ratings show. Investors to better in charge of our 401 -- are we also can view them and and find out just how could have -- safe. And investment should be that's that's the premise very simply put."

" In congress -- some extreme changes or radical changes based on what happened in the lead up to last year's big market collapse."

" Imagine not just politicians backing but investors to. A dairy farms is the principal funds at risk solution he's a former Moody's executives seeking give us an inside perspective on exactly what's going on. And -- would just pick up canary what do you think with the -- and that we talk we've talked a couple of weeks ago really. What what do the development down and -- conversation down there what you saw yesterday what's your big takeaway."

" Well it's a very complicated problem and they're trying to find a solution I think. I think you're talking about the senate banking committee. Hearings yesterday on this on the proposals. And I. It sounded as if the administration doesn't want to push too hard and and some in congress want to push a little harder on reforming the industry and the other and so many different issues that are. You know. At stake here that it's it's really a continent that it's a complicated how hard -- well. You know what -- want what do you want from that that you would better ratings right you what you want that are ready."

" Everybody it is their rating companies the whole premise and then overall do you think that's been destroyed that was going on -- we ever trust them really again."

" You know they have a hard. Road ahead do we establish their reputations and that's that's going to be part of it how. How can you. Recover from what's happened thousands of downgrades of securities that were who were supposedly safe that that turned out not to be to say. You know that -- number of issues that let me just go -- I think the main issues -- one is is that the concentrated industry structure I think that bothers some people -- too large firms -- one. So so called tiebreaker firm. Even though they're ten and our -- firms that are recognized by the SEC today to do ratings really they're still only two to three firms started -- two to three. Moody's S&P and the fish and then another seven firms that really -- you know art and -- at a -- they're not that relevant not had a discussion and all the other problem is that those to. Three major firms charge issuers for ratings it's a there's a conflict of interest there and so. You know how we -- you know deal with that conflict of interest happy about how. You do when -- further for as long as you -- mean they've they've they've they're wall supposedly in place to people believe there is a wall. At the analysts level and you you are generally. Isolated from these discussions with the issuers and you're not really aware of of the fees that particular company that anyone in my wildest somebody get -- when you kind of know if your company's big you know the the pricing scheduling you know they must be paying a lot right so it's it's not a big secret. But down the dirt are generally is no pressure and then I can say this from my experience at Moody's there was no pressure at all on an analyst at least in the company -- side to. You know. Generate revenues for the firm -- you're responsible for the rating if you get the rating right that's number one."

" Well it. When you were involved at at Moody's. Did you feel comfortable as David asking about the readings that were out there did you feel comfortable -- your family. -- this information or putting out there is the right information well."

" Dan Ireland -- county I don't know the ratings I believed in the ratings that I was. Responsible for which was you know accent wasn't rating any particular from that was an and the credit policy area overseeing practices in the fundamental side which is the company's. -- financial institutions and sovereigns -- finance area. You know there. There was really no basis to have much concern because there was no transparency around really what these things -- that were being rated in the first place. You know what the methods are being used that that too was a bit of a secret you know so so you really didn't know you know you come on faith that my colleagues there were doing a good job and so I. I know that I was in a position or really. -- the resource that the start raising flags and say you know right you know -- something's wrong over here. Particularly in you know there are BS series the CBO's there in the SIVs that -- a lot of these exotic structures that were being rated. That were fairly new complicated and opaque."

" That elite even in Dayton -- agreement that that you know we worked for the same company but we were different branches it is Fox News radio. -- Fox Business Network so we generally got to know what's going on but of the inner workings of no had a car -- I don't know who refused -- And revenues and yeah. What happens and then when he heard the cards right -- me agnico great as it is how far it could be disaster we just don't know what's really going on with a bit -- kind of extended members of the family. So you're going over some points that you dot we're importing is couple others."

" Her son of would be. Rating firms don't compete on quality of their ratings there's no -- for equality that's another thing we don't really know how to judge the quality of a rating -- the firms themselves to their own performance studies it's. It's just that kind of bizarre it's like grating themselves maybe. In -- down husband sort of thing he did it might be another way to do that right the other is over reliance on ratings by users and done people. You know starting with the government who've been trying ratings and regulations and and certify these firms. People at all levels within the investment community rely on ratings and perhaps over -- I think administration and others in what we got to stop that over reliance."

" Oh yes her viewers are weighing in right now and saying okay this is all -- good to have this conversation but what -- things that the rating companies proved time and time again. It that you can't trust anybody but yourself and you're responsible finding your own information. Is it is -- information the rating companies have access to our analysis. That that we ourselves are not privy to."

" And in that company's side corporates and institutions are generally not maybe a little bit -- everything that they have. That they need to do their job should be already published by the company -- either an SEC filings are or otherwise uncertainly in the US out outside the US with -- a little different. In the structured finance area. No you it did these things are very complicated in and there are a lot of moving parts there's thousands sometimes thousands of underlying assets within a securitization. I'm so most investors are not going to have access and if that information so that's another thing people equation and we need increased transparency. Across the board transparency on the underlying transaction the details so that people can make their own opinions. And and also as a trance transparency around the ratings and their methods that you know how they assessing it and and if those are published and widely used and people can. Look at those and do their own analysis and come up with a conclusion what."

" About who -- from here the government wanted to further regulate their ratings. How does it do that and how does it then punish somebody in some company for putting a rating on -- well that was a bad rating how to how does the government know that how would they figure that out."

" Well it's it's you're right it's you know firfer -- for years and years of -- I think post war till about two years ago they had a pretty enviable track record. On average they got it right higher rated institutions defaulted. Lower frequency than than lower rated institutions but just because one company blows up he can't say they got it wrong something could've just been. Now. Out of whack with that particular firm something maybe they could control pork but on average they can get it right so it takes a large -- to know. Whether or not they do a good job another and let me go to one other candidates on the table here and then as the legal risks. That the that the rating firms are things facing I mean we know calpers as as filed a lawsuit against the major firms that they're literally dozens of other. Lawsuits out there and you know this is I think this is where the solution of the problem. May take place this in the courts not by. Acts of congress not by you know anything to the rating firms are going to do but rather what is determined and in the course because this this movie has some very serious issues end up with a complicated."

" Eight in principle I think in today's -- without the great point about how do you. How do you punish people you know. There's analysts on Wall Street that say okay we think this company's gonna have this earnings -- this revenue and they can be hung every single time shredded apart is sending your taking them for legally wrong I think the candidate if they're wrong because they're being paid or her creditors somehow the process is corrupted that's different than than simply didn't look at courts have the tools necessary to they have interests. Standing because it did this not out."

" This -- very Supreme Court because it's a First Amendment is -- at that they're using they're saying look you know we're we're essentially part of the press work we're expressing an opinion and whether or not it's. Resolved you know at a lower court or -- out there what with that that's where they go I I can't say for sure that done it. It could go either -- the longer they could -- long right in and it could get ugly teeth and palate and well I mean."

" They like in the agencies are due credit companies these companies are are changed forever and that way."

" Could be if you know a court decision that that enough that if they don't have the financial resources to -- stand. The claim some of the kinds of put against them I mean it could it could damage them financially and enemy to say look it's too risky to be in the ratings business."

" That movie that I believe it was isn't there you're safe I and that's our greatness. Yeah. Does have a get out of here before I -- really appreciated their lives have become by the his heart talk about from the inside. I mean everybody hazard he's not habits in diet well thank you and a pleasure to visit the long road we expect to see back on the -- sometimes -- with the Kathleen Kennedy. Thank you very appreciate it very much I we're going to -- catch fish -- switch gears again -- only time. Why don't want to tell them I enemies who had you can shift now -- to. Sydney hay he worked on Middle -- guys didn't let you guys have to elect to electorate electorate as I -- bloggers here this time that's a good. Case in point will be back with all of that more. But right Jonathan Reid is the CEO at ego it. Talon -- do I have that right Jonathan you joining has spread my hot."

" Phoenix Arizona. That's right -- he could -- okay so what exactly is it good Saudi. I -- company that's focused primarily on developing electric transportation solutions. And providing the infrastructure for electric transportation. And electric vehicles."

" the electric vehicles. President Obama has been pushing for. Of course a new kind of cars that change that he wants for the future for the economy. These electric cars were starting to see them actually involved Nissan is gonna to be putting one out in 2010. And you're going to work specifically with Nissan on this and and then people who are going to use these electric cars correct."

" Absolutely we're going to be working with -- Nissan but we're also going to be building out electric infrastructure in five different markets. And this electric infrastructure will be usable by. Any of the yeah electric vehicles that come out we know that GM is is launching. Chrysler is launching -- launch an electric vehicles and then there's a host of other players from overseas that are. Bringing them electric vehicle so they're really the time has come for electric vehicles in their. Going to be very much a part of our landscape."

" Yeah we hear about all the different an invasion on the alternative energy cited as seen by the different automakers really battling it out -- Latin. I'm the one hand to make sure that they have the best innovation out there on the other hand not innovate so wildly that they can't participate in infrastructure -- actually -- writing or. Parts like batteries that are out there so. You think goading each automaker if they go to each company and and try to try to have a relationship with each of them would do they come to you how does that work."

" Whether they're coming to us which is a wonderful position the end. This we recently got a grant yesterday for 99 point eight million from the in the stimulus program that that validates -- technology world leader in fast charging. Which will allow vehicles to be charged in the intended twenty minutes. Why you're getting a lot today or or or picking up your prescription drug store. So the vehicle manufacturers are coming to us and the great thing is that this time around on electric vehicles there is a standard is station. So that all the vehicles are going to be using the same plugs in the same outlets. So that infrastructure put in anywhere in the country is going to be able to be used uniformly style vehicle manufacturers."

" We have and it's a good question here from one of our chatters who said what about plug in cars we talk about interchangeable batteries exactly how is this going to work and how far can these cars go before I have to find another station plugged my car -- pardon go again."

" Well currently the the Nissan vehicles going to have a range -- about a hundred miles. But we see battery technology really taking off over the next two years in part from the stimulus program that's that's pushing American battery makers. But just in the general growth of the battery so that a hundred miles to. 2200 miles is going to be an easy lead. And -- if you put that in into proper reference. Most Americans it in 90% of Americans drive less and forty miles that day -- their vehicles so. Most Americans are going to run out of range with a hundred mile range vehicle. And then build an outer regions."

" if I want to have a car that I can go somewhere else only locally and we cannot and FM two cars one that I do. To drive to work for the other one if I want to know hundred miles. I don't know."

" It's it's where that's part of what we do is we're building up the infrastructure of public charge stations that would allow you recharge intended -- minutes so that. For instance in between Tucson and Phoenix will be putting -- points. In in fast food locations in malls so that you can stop. Have a quick bite recharge and carry on down so down the freeway with the right."

" Infrastructure -- wants to know how do you charge for the energy the -- uses when -- apply again in a public place we think about you know when we talk about each of us use electricity in the great here in New York City. It seems that we have a race there is that is digitally re Irish and afraid the please be with our housing bill but he thanked."

" Well surprise surprise it might be very well be free because we envision AA and infrastructure were retailers. Are going to pay for that electricity -- between sixty and and a dollar twenty. To have you come to their retail locations so there is a very good chance that that while will ultimately pay for you could be plugging in at retail locations for free to --"

" I couldn't -- five dollars for a latte adds -- that I could maybe buy in my dad my through our very cheaper than you can write that that I went back. McDonald it ever did the very interesting idea though because. -- Edmonton pay it down at the American consumer likes to shock you gotta go some place is so if you're gonna get copy anyways why not. Good cop who shot this -- nobody free energy for your car into -- coffee and miles. Did you -- Yes but that our coffee and 55 dollar coffee fifty miles we'll give you I have Big Apple -- it says Thomas asking again on the on the board about the infrastructure. IA and a lot of the a lot of folks are weighing in on that how far away at me what's really the timeline for this because just a couple of years ago we're talking about -- where we're -- and we -- ethanol stations and then of course -- the talk of the town to -- there could be hiding -- stations so are we going to have all these different options and and how --"

" I don't we're going to have infrastructure on the ground and vehicles on the ground by fourth quarter of next year. -- we're rolling out 5000 vehicles and 12750. Charge stations which is the largest. Vehicle and infrastructure rollout in the history. For electric vehicles and the one thing you have to remember is electricity is the lifeblood of civilization. You're never that far from it essentially what we're doing is extending it well built Saudi infrastructure the electric grid. To be available for -- use in in in vehicles so it's not as capital intensive. As it is to build out and ethanol or eighty. Hydrogen infrastructure so. Degree is ready for it is to find anything in."

" Three years Americans love the volt and they love the Nissan and all of a sudden all these electric cars around -- it's fine. Right on --"

" Through it will be. -- will be fine -- we work with as much as we work with the vehicle manufacturers were working with them electric utilities around the nation. To help them get ready we're consultants foreign a number of the major utilities both in this country. And in other countries so we're reaching out then and we are the the experts in in -- building. TV micro climates and and helping people figure out what's necessary for building chart infrastructures. How much -- and it Nissan by the way. -- of one of our that Nissan. The Nissan is expected to be at the same price point as a Prius."

" You know I didn't -- hair that's a different part of the countries is going to be uneven."

" I think it's going to be uneven let's face it -- somebody that wants to drive 400 miles until his -- up to the lake. Electric transportation's not necessarily going to be for him. But cities where you have. Reasonable commute places like Portland and Seattle. On east east coast of the Florida city -- beaten down the eastern -- Where the drive ranges and that that great they're going to be quickly adapt and and especially commuter. Type of situations the question Jonathan what -- I didn't try to jam. And I were a lot of electricity. Why do you have custody that. Well idea that you're going to do the same thing you do when you're on how to get satellite LLC out of -- Oddly enough we're in discussions -- trip. How about helping them yet. So that it its credit it it is going to be the ubiquitous. Charge stations electric cars are going to be very much a part of the solution not the entire solution but part of the solution and -- We're here putting that infrastructure in."

" Final thought here what what about jobs and we know Arizona has been hit heavily with the housing market there and everywhere really had that in what are you hiring. And wait are you looking to expand."

" Aware absolutely where we expect to add 750 new jobs over the next year to two to three years. On top of that the the Nissan program. For electric vehicles -- another 5000 jobs. So while we were very much jobs driven. And see that that the infrastructure installation. Maintenance is going to be a really had a green a job bank -- green industry that's not going to be one time industry. But it's great we're going to be training people on how to install these and and and how to maintain electric vehicles how to maintain the trying to."

" Good actually did it -- into recruit I mean I do go to places that -- the auto workers are laid off is that is that the type of training her. Our train employee that you what are you looking for someone with different training that needs to get something little."

" We're absolutely looking for for a skilled. Vehicle technicians for skilled electricians. And engineers have all sorts so we're we're reaching out nationwide."

" Had a -- are you know -- you know where he sends his resume. -- be -- very passionate about you're gonna work I wear away at what age."

" WWW. WW WE totality dot com we have a careers page I would love you get prison."

" It's all right well -- okay keep its date of fleet week have a match here. That's going to be offset by diet and read and appreciated again I would pay check he would be seeing sounds very interesting and it's really lighting up our our common for a here's we appreciate. -- having -- on today. Thanks guys thanks -- Did you -- electric car."

" I don't know the series that worried about I'm kind of -- I get behind something in and all of a sudden there's an accident had not."

" And you -- that he does -- me these guys they had it would look for different right."

" Like the car -- and."

" The gently look. Yeah I'm not that jacket okay I've come out. Good Friday yeah we'll hit the market we're going to talk to CMO a -- coming up next."

" had been shot the (%expletive) today with some looks at some products nearly just talking about. Electric cars go what's progress other things that you can actually got invited to sit maybe sooner than that yeah it'll -- that lawsuit I'd definitely get ahead to demonic completed duplicative but I think especially cool I think Jack Paisley is good axiom -- he's joining us right now -- sitting next to him. It you know woman she's from laptop magazine off to a surprised you're -- kind of talk about this all together guys because. You know we have -- the next big thing that's out there suggest could actually guys that had been in one part of its business and historic part."

" Because kind of transition is a very over the best way out of anything and I'm getting it get its recently and we had a digital camera we not only did the film but of nineteen 7576. We invented digital camera we just didn't come out with a right away we took a little while. But yeah yeah. Well we may agree we don't know who waited too long we -- no later than we -- we should -- we're doing right now. There were coming house rule innovative products and those on hand HD video cameras Richard brought here today -- yeah. This is what about when I think you've been reviewing them as well yeah. Absolutely absolutely no time -- nominates an HD video camera that's the New York ZIA -- out today. Shoots up to ten hours of video 1080 seven's warning shoots are still as well. Can upload it right your FaceBook YouTube accounts got to USP or issues of the ten hours of video in fact. Something -- we're here we're Brothers and sisters and Fox Network are actually using this to do some of their field reports. That also takes a bomb a microphone as well so that's one of the new -- we built a new product."

" So how does that that that. Didn't seem to -- their -- for example that the flip cam that was not if you prepare him around right here have bee flip ultra HP which is 200 dollars new on the market. And in a way they are similar they're both pocket cam -- to shoot in HD. But they take different approaches the -- series is their motto is basically less is more -- Italy should -- one resolution in this case 720 Ph.D. There is no memory card slot so all the memories already built and and it doesn't take still photos where it's Kodak is really going after scare Warren tech savvy customer I think people who really love their technology people who love the idea of using their memory cards and cramming in as much memory it's possible people who love the idea of taking still photos. There's even a close at motel coupons state they declare I -- they got -- give it -- to let -- use it."

" Where -- high quality which is what you want and it's got both the media cart and the US food network cost 279 Dorsey going to get all the features a lot more. Lot a lot sleeker look very lightweight I'm sure you'd say. Floodlight and you mean your phone itself and I just got my -- and I guess they iPhone three G dipped. And it's an affectionate little lighter -- little thicker and instigator proctor give us or you're worried carried a lot of folks who carried just like that and you know criminalist there are so it's a really kind of a nice feature. Brought down market in less than five months during intermission of their very innovative really cool to be able to do. And a lot more improvements from that -- version that and you've reviewed another movie itself customers said he put a microphone. You know taxable we don't go wire to wire microphone to it and so we built the Koran and -- can't -- it -- you can't absolutely yeah. Really putting it on you know good how. Yeah at all properly done wherever we -- all the law however -- It's really physical I think it is a very cool products three hours sitting at a roadblock in the -- you know when I campaign and ask you because -- of -- to -- not Palin hi my wife doesn't want to carry around a phones and cameras too much too much we think is having a baby right. So we have this and has the Cameron has that down as the video feature. How do you do. Do you with casual consumers who don't necessarily know -- lot depends on what kind of equality you want should not going to get equality awful lot of those fallen so we do have some -- megapixel camera phones we do -- in China and other parts of the world I would Motorola this has -- five megapixel camera. Right on the still camera right there on the video she get a little bit of both and most people are going to be okay with that. If you're going to want to give -- quality and you want to have more mobile feature you can do it on -- cellphone it is not going to hell did you have far away. Yeah I think we can elect to take care of good Kodak moments we thank you you've got some special moments we want to make sure that son -- daughter or ridiculously -- Jack okay. We want to make sure that you -- of those fiction Jackie and I'm going to want fuzzy pictures there."

" Yeah parents are. It has the cool factor is Kodak really good people still -- like you can global something it's a verb it could happen like that before -- can come back. I think -- into -- relevancy to a younger audience. I think so I think it is -- huge strides in this market it's one pure digital pioneered the Kodak paid an incident took a lot market share and made itself very popular and I think it's because. The products are not only easy to use and very portable but also have this great combination of features including as -- said he still photography. -- a Kodak moment you badly needed it is there that no matter."

" Not a lot of a lot of folks have been saying with a product that we've we've come out what we've really got our Mo -- back which has been cynical but W look at the difference between the products -- mean. You know some of the products you might look at -- look like they've been built by Soviet. Shoppers haven't admitted it's not quite the same this is a very slowly grow it looked to look good feel holds well there's a lot of factors that we put into -- we really -- the customers and we hear from a mother's son -- Twitter or FaceBook or over the these folks should act to listen tell us what they like and don't like ultimate one of the biggest things we put in this was an image stabilization because when you're after holding that right. So we've put some image stabilization they and that's not available a lot of other products and that's really cool to have it's a big big plus when your. When your when your caption a special moment even a video. Felt like him around and wear out our website at look I I wore yellow everything underneath my clothes because we we we used to -- your job there have been a lot of."

" Real quick -- just what is that would have been retail situation like out there though because we do have consumers pulling back and India -- by these electronics today buying these technologies here rabid cat from but it's not something."

" we yeah we said in the second half is going to be the second is going to be where it's at and we think that most retailers -- that's what we're hearing from the retailers themselves. And I've talked to very judges. He's the CMO at Best Buy talk to Stephen -- at at Wal-Mart these guys are telling us stay the second perhaps going to come on we believe list. And it got price points you know 13948. You know battery operated frame 179 foot HD video can be used in 2000 dollars for a few years ago. -- people coming back."

" Good how are we getting get every -- is -- one of these is an expert in any mountain -- in that direction."

" salaries and I always think that Christopher. Always 'cause you always want the next best thing and here -- just that your your example that she's an example that I want the next best thing. So yeah we're going to tomorrow -- 67 months for income was so no because you have to if that's what should demand for the this at least 1080."

" Yeah. Every different -- got a lot -- hi guys thanks for actually tracks that gotta run that. And I pay cut a moment please thinks Palin is talking about it we're version of the we appreciate that you as well."

" Not imagine that -- really good. Thanks for thinking so nice guys -- have tomorrow we're gonna back again Bible right very -- joining us right so."