Housing Sector's Faltering Health

" But it has got not my laughing at my lack of sports information millennium and it was that lithium -- and -- and having. As a -- viewers have commented on my lack of sports. Background back to -- they'll -- okay though on mass. I wouldn't expect you know enough to -- my brain cloud and abuse within -- means and I. At mentioning the market though is down 39 points. Doubt and I usually hasn't -- well it is just tell us let me not think it than it does not only night and nothing in these last couple of days I think what it's telling us is it still sketchy yeah. -- economic recovery is much slower than anybody thought it was going to be revenue. Earnings reports have been great good but not great. Consumer confidence I thought was the biggest disappointment could confident that was no less jobs are still sketchy out there especially where does that tell."

" The feeling that type of thing you know the confidence of its rather than hard numbers that say. -- how do you feel like the economy is looking in as particularly you know as Robert Ray said yesterday now right now current. You know feeling is really not very good the other thing too is certainly. Less bad is no longer good anymore because you look at the housing -- depth and for months less bad. Was pretty good we are seeing a recovery in housing now all the data were getting the good. Case Shiller numbers and we'll talk about that a little later in the show but in general the housing data is less bad and that is becoming bad."

" Our new home sales are down to no one's buying new homes this -- GMC bail out number three thing actually kind of bothers me. We're bailing out GM AC for the third time so they're going back now talking about almost five point six billion dollars. And they've already got in we already have a 35 the government already has a 35 point 4% stake in this company we're gonna give it more. And yet we can't help CA ticket --"

" And the pilot I can't explain it to I can just say that once you start. You can't stop. And that's sort of the thing you what did you -- didn't you know to Tron is a bailout money for GMA CD stop now and let them fail on you say. She's -- we even do that in the first place would you just keep going and when does it stop because. In the hands are out. -- they are the guys are gonna keep bailing us out just keep bailing us out and put it in a way it's sort of the government's own doing here. They are the ones in the stress test that said you have to have this side of the capital cushion and you'll need it well how are you going to get that capital cushion -- we're going to give -- is units in the first."

" Let you know the worst part is what do we get this. Preferred stock opens the preferred stock but it would have wanted -- and the taxpayers should be getting secured debt. Given senior bonds give us something that's going to get paid back first know that -- won't end -- death lasts."

" That that's sort of the one thing right now I think -- that today that's probably bothering people more than anything is -- TE even though I'm sure nobody out there things that was unexpected. Robert -- here with this just to keep this up to date on everything that's going on today. Well a little bit less on the economic front today he'd been on the earnings front yesterday we get into really big he's in Israel today down and say we still get some housing yeah I'd say about the housing in and calls -- the the dirt."

" Or this -- was actually pretty good this morning which it. I -- a surprising out for fourth month and six but. Below some of the estimates there but we're we're still seeing a manufacturing still doing pretty well we know the car companies after cash for clunkers. While a lot of people back on line to this manufacturing is trickling down. Would -- BO orders for airplanes were down a lot a couple of months ago this very volatile number that jumps around a lot depending on these orders get booked. We did see one really good thing in there was this. And I love the title non defense capital goods excluding aircraft. Basically it's business spending Allen actually up 2% a lot of people like to look to that and that sort of goes we talked to yesterday Intel CEO saying. People are going to start buying computers again you've got a new windows seven point oh. And have a bought computers in five or six or seven years so a lot of companies are almost going to be forced. To upgrade when you look at that number two in the -- plays an important role they because at some point in time. Inventories are going to get solo I don't know what we have when that is what that number's going to be. But the going to get to the point where we at the start -- right and we're seeing a little bit of that we keep hearing about it we're running out of time but I can't really get zero."

" But at same time we didn't hear a great news from the rails the CEO of the rail companies just that -- where she spent a whole heck of a lot of stuff we're not pushing product from one place to the next night yeah."

" Yeah people to watch it with this to me as as we get any closer to Christmas FedEx and UPS because if the consumer comes back. Those guys are going to be busy -- stuff to the store shelves forget us and get to that other they're -- somebody's going to have to be governor adding stuff from the warehouses to -- question is is there anything in the warehouse. Don't wait for the after Christmas sales I guess in it could take that back Amazon also play on a straight yes and you think of all the shipping going on any US Postal Service I guess I don't know I don't know what percentage of them their shipments go via. Bomb what planet short term definitely goes for -- Folks like myself we don't always get it done -- finally matters when he yeah that it expects today as well I can't. Yeah you I guess I the next. This take him -- does nothing to shop online or only -- I'm actually -- They now. When you get to the shipping it is automatically set forth right FedEx like -- is that weight to it while -- US Postal Service you can go back and say I'll take these slow and steady set out today Postal Service yeah like overnight for tickets to -- Natalie you're buying it six months and like. Immediate tomorrow accurately -- of the wreck and that that they do that. But yet that new home sales data also very disappointed homeowners all -- getting beaten down in fact they put in a little bit of a rally but a lot of traders are watching it because it it sort of the momentum is waiting there for them moving group. There are all down pretty much across the border to this number came in and it's all about that tax credit and we talked about yesterday the you know whether or not they're -- they're talking about extending that we heard from Chris Dodd yesterday late yesterday afternoon saying there. We're planning to extend it no word on whether will be expanded that's what. Those a lot of folks who'd like discredit all people don't like incredible people who do like the credit would like to see it expanded beyond just first time. You know and these type programmers want to let a lot of the people get into this market perhaps people buying second homes or. You know higher network higher network people I was starting to run out of the first time home -- anyways right even extending this for them in the next few -- you know it's."

" Very interesting mortgage demand started to drop about four weeks ago. That is exactly in line you know most we'll tell you that takes about 1212 weeks to close the deal -- start to finish when you buy a home. She's still a mortgage demand drop right around the time people said yeah well I'm not going to qualify for the credit at this point so come back and elect."

" And also with the September if you had too in the September to buy you are going to get -- under the exact as you were just saying so that's the September numbers really starting to reflect this lack of lead time if you will that -- the huge amount paperwork done. Thanks man good to see and hear about them is always the show on housing and durable goods on his I've fallen in advance that you didn't get a little bit extra at your holiday they think that is the -- managements got an eye on you. You don't place right. Body go to that's you can be -- cracked Don Bertrand joins us right now from Scottsdale VP -- trust. Arizona and jock Don what's good about. Bubble would be talking about here is anything less bad is no longer good anymore it seems that way with housing numbers. And beyond all hoping we're not going to get that -- was some of the other numbers that we getting consumer confidence in retail manufacturing. As we progress through what we opens the recovery."

" do good morning thanks for having me you know by -- I think you're right I think you know what I was this was into it it really comes down to whether or not the consumer is deal way. Rights of the consumers 70% of the economy that the consumer. A -- doesn't spend this holiday season. You know we're wolf we'll see I mean but that that that could be really troubling sign. What are your thoughts about this holiday season coming up that you think it's going to be as bad as what we've what we've heard we've heard it's going to be pretty done that. I don't think it's going to be great and and it's hard to get there. With the realization that unemployment -- nine point eight and possibly going to 1010%. Or higher so it's hard to get. It I don't know need to that's just me -- it's hard to get to a point where you rethinking people are going to spend a lot of money on big ticket items or or spend a lot of money at all. And you know people will go out and spend certainly they will go out and get but they'll do it carefully and then he'll be very they'll probably be pretty frugal so."

" Right so we'll see the same Meyers the wal marts and targets of the world the low -- deals. People using -- to get good deals one thing though that. I know you've noted in your notes three trillion dollar still on the side in money market it's not coming back anytime soon we actually saw about -- but increased a little bit yesterday. He still very nervous about this market and consumer confidence numbers are perfect example of it so. I can't imagine we have a great holiday season what do you airports see it then going forward say first happen next year."

" You know although obviously the S&P and -- are up 60% or just about 60% now. We'll we're cautiously optimistic you folks are talking about earnings and and they have been good not great but good. So earnings. You know who remains strong going into the end of the year than than we could have another leg up. But but it remains to be seen so yeah we're cautiously optimistic was still pretty defensive in our. Portfolio allocation -- you know and a moderate portfolio we only have about 40% in stocks we still we have a very strong waiting in in bonds. In alternatives. Commodities particularly. What kind of I'm -- short term and long term what do you halting short term is short term very low duration short term bonds. You know and they give -- like -- I international arms as well. Yeah we like global we'd like we like global and we like we like emerging market bonds as well shore Don especially would do. Lanza of sight in love with a theme of the week of a weak dollar is that that's that's one place perhaps two to edge a little bit."

" When you look at the big number tamale GDP number obviously can be revised is the first the tent for third quarter but. You think that's going to be a market mover."

" It could be an aid could be in the if if if GDP is higher than expected. I know. Forecasts have been around the 3% range. But if it's higher than that than short and then eat the market could really move. Goldman reduced by the way it's thought about the GDP next -- two point 7% so there's already live in a concern heading in that number --"

" I've had a little bit."

" Well there's been a lot of talk about that in in a note that this that a raging debate about inflation versus deflation. You know you've got to believe that inflation is going to be an issue at some point so yeah we like -- very much. Then do we like other short term low duration bonds. It is well but but it so we liked it very much. We we still think that there -- good value -- with -- inflation in mind at some point you know not probably in the immediate future but a couple of years down the road inflation is absolutely going to be a problem."

" So what other sectors on the domestic front here in the United States stocks in the US that you are holding these days."

" Well you were ass in alligators so we we. You know we we we obviously large cap growth has done very well technology is done very well we think that those are that's an area that's. Probably going to continue to do well. But we don't we don't try to make sector that's that's not to something we -- You can holding a dividend stocks these days I -- a lot yeah how about returning to the dividend place. Sure yet -- we -- like dividend paying stocks -- much. And in also logged in I talked to -- little bit earlier about commodities in and if you managed futures and also in this is going to raise a couple of eyebrows but we still think. For new money going into the market if people want to be. You put a little bit of money in in real estate maybe now is not a bad time. Given all of the terrible headlines and in concern about about commercial real estate. Maybe knows not a bad time just it to to put a little bit of money to work in that. What do you think where they think oil's gone. I think it's personally I think it's gotta go higher. You know so it's around 78 right now -- eight to eighty and I don't want to make it called the -- I think it's going higher probably going somewhere 85200."

" I Don banks to appreciate it. Thanks thanks for having me divert trivial -- wolf first in look that well first Arizona in Arizona law places an. I was dating since no right now actually because it's snowing. In northern Arizona in Colorado and Wyoming right now. Western Nebraska may begin the foot of snow on the front range. Another man not just a little bit about what's going on Bob and Nebraska let us know Allah Allah I do and out there. It's digging out from the foot of snow. You light snow do you hate snow did a wild guess you hate snow -- can't stand it. At Santa what you get is still stay at you in the northeast I am I raised refused that refuse to go on the floor."

" My entire family there's like 65 people are within twenty miles of each other if I move they couldn't Italian hacks on me -- like I wake up when they have an -- falls -- annoying is that harmful -- My arm will follow ups and I happen and I just can't -- and I won't miss it we'll we'll -- yeah."

" Instead Peter Barnes. In DC executive pay all the rage now and in our nation's capital Peter I did see some of this some. Kenneth Feinberg. You know talking about this on Capitol Hill just a little for this the start of the show. All -- it never really heard him speak before and easy to me is very convincing Andy and he knows how to speak to look. The common man which we got a problem with with. Some of our government officials sometimes when they get up there on Capitol Hill."

" Guy is a bit of a show open up the area seems to like the limelight and but he had has taken his job very seriously no question about it dot. But -- since one of those positions the pace car that seems to be up pretty thankless it even though he's. It's gotten up there -- talk about how he's cut the cash salaries for the top 125 out of work got a 136 executives at the seven companies. That got exceptional bailouts the AIG's. Citigroup Bank of America GM Chrysler Jimmy -- Chrysler financial. Cut the cash compensation from 2008. By 90% cut the total compensation including stock bonuses and other compensation by 50%. From 2008 levels but that in some cases some of these executives are still going to make. Millions of dollars. More about thirty of them well he approved salaries potentially for at 2009 up more than five million. Up to ten million in a couple of instances and that got some members of the house oversight committee. Were often running this morning and saying well how can you. You know say that you're cutting compensation at these companies. On the one hand to try to rein this in it took to rein in excessive compensation and on the and you know on the other hand. He's he was he said listen I've got a tough balancing act here and I know I have to keep. Certain key people at some of these companies and compensate them well in order to to AA and sent them give them incentives. To make profits and thus. Repay the taxpayers some points out it was not the easiest job and he made that clear this morning in -- seems to be it seems to be carrying. But back out holding up some of these closing counter punching pretty well."

" Appearance seems to me again like the problem was always think cash bonus. The one time at the end of the year we get this multi multi million dollar bonus package and not the salary of people upset about the cash salary. But a lot of good things are going for like 250000. A year to 450000. A year in salary. Let something like that so the salary still isn't the big bomb. It's how bad bonus is stretched out may be over a couple of years instead of one -- that that is what he's really trying to attack isn't that."

" That that's right he said he's trying to reduce the amount of cash executives get in general. Particularly guaranteed cash payments like those year end cash bonuses. And then convert that and in fact he said he renegotiated a bunch of existing contracts with some of the necessity in these executives. And employees to get them to get them it two. Well. That generally do a -- the model would be a a decent cash salary. But that they -- but overall over time potentially lots of about compensation hair. But structured in long term deferred stock rewards of some kind so he has what he calls salary stock which they can start cashing in after two years and then. Third in year to its third -- three and a third in your four. And then he has kind of the stock option. Bonuses at at the very end that's contingent upon each company. Repaying their TARP money."

" Peter what's the threat that this is going to believe into other industries that are doing well. You know the government the oil companies start reporting profits again we're gonna start hearing that they are making too much money. That insurance could very well benefit from -- who knows what kind of health care package and -- basically any company that starts to make excessive amounts of money could very well be on the radar screen couldn't."

" Yeah absolutely. And the -- more and more contained to companies that might get some kind of government assistance that I don't think the energy industry. Is in that position right now but but Feinberg did say that he hopes that his rulings in his decisions. And his model for paying executives will be used. As a model throughout corporate America that the idea being that you hide the long term. Compensation and rewards for executives to the long term performance of the company and you stop this insanity. You know paying as some of these people if tens of millions of dollars. For short term transactions like got you know trading in sales and then what a -- with the underlying assets and investments that look fine today but them. Could blow up five years from now so. He he he is hoping. That this will become a model for corporate America and voluntarily voluntarily that the government is not going to have been forced companies to do it yeah."

" I'm April Peter and that's what this is it's the same -- things here."

" Okay guys thanks anger going down DC yeah yeah we can only hope. That cannot be forced by the government has not going to happen now -- you know I've got to take a break when we come back. We got bought housing coming up on Gomorrah look Elisa O'Donnell get until about."

" That's that's good. -- really good."

" Welcome back to foxbusiness.com I don't forget to download. The very cool -- you can watch -- no matter where you are. Chris where. In I don't know Mongolian. Mongolian is that. Having numbers today new home sales down today very disappointing actually -- heading this year this -- headings property group to talk more about it you're based in. Men and which we have to get doing a bit but we think overall of what's going on with housing -- we at noon we get good numbers existing sales not so bad. New home sales that."

" You know I happen to not be huge fan of these macro numbers. I think that there is no housing market per say there are a plethora of housing marker at markets. Micro markets across the country so that's why we're being inundated with all of this confusing data. --"

" So to see numbers come out yesterday where new home sales in August were up 1% when they anticipated point 7% -- And then to see. You know that the home sales numbers go down three point 6% today when they were anticipating two point 6%. Is incredibly confusing. To the buying and selling public out there."

" talk about. The all the hundreds of different markets though that did the lenders treated as if it's hundreds of different markets because there's still ultimately beholding to a federal government number one. And the material that that that. General economic environment is typically one of on the macro level than on the micro level would you agree with that from the lenders perspective -- Wells Fargo and Bank of America."

" Yeah I think that that you know having my expertise being in Manhattan."

" I would tell you that. The lenders looking it at an all of the area is exactly the same is a negative. But it is in fact the case yeah they are look they do look at these markets pretty pretty similarly."

" We did see though you know yesterday existing home sales. Improved except Las Vegas Cleveland and Charlotte mean these areas of the country are still really hurting I don't think Miami's doing a whole heck of a lot better. Although we did see an increase in San Francisco the for the most part California still hurting so what does that say for the overall trend then well."

" Look I think that this didn't areas that you sit with the exception of Cleveland probably but Las Vegas Miami. Other areas like that where there was such as development boom mean an insane amount of development in a very short period of time. There were not and there was not a a population to absorb that product -- sell now that the market has turned the other way. You know prices have to come down I mean in Vegas sin and parts of Arizona prices are down 50% or more. If you go on to YouTube on any given day in and Google housing auction. You'll see frightening. Frightening auctions."

" Where the the auctioneers standing there trying to get people to bid on places that are down -- we've -- 80% Detroit was I'd just this week Detroit they had an option and they aren't like 10000 dollar homes they couldn't sell yes you know mean -- Perfectly good houses so they just there's that much. The only we got the new home sales today. And you save you some -- that doesn't necessarily body that much we have so much inventory on a national basis. Don't we have to work through all of that before we can expect any new homes to really start moving. In should we had neck and socialization a new home builders are really going to struggle for awhile well I think that what we're seeing right I mean there's been a bump in new home building in the last six months but I think what we're seeing right now. Now is the results of government meddling and I think I'll hunt up how to get smacked around a little bit in this city for setting that but I will tell you -- that."

" Eat out the 8000 dollar tax credit all of that stuff is propping up a -- that needs to be left alone. Now like we need to see what's going to happen with the market. And until all of that stuff goes away we're not going to lenders aren't lending -- I'm speaking specifically about New York City. But more than 50% of the transactions in my company. Our cash transactions. People who are paying you know an average price of a Manhattan apartments one point four million dollar they Americans. Some of them are Americans some of them are anti investors who are buying. Visit in the city but many of them are from China Europe. And and if not your average home buyers in the know I'd stay up. A little in China they think America's for sale right ridicule and a good reason yeah exactly exactly do you what do you see going forward for this area because. We said before that this area hasn't really hit rock bottom that everyone's expecting to see. Yet what I think what we're seeing right now is a bit of a -- dead cat bounce. There has been an unbelievable amount of activity. Through the summer our summer market here in Manhattan was. What are traditional spring market would be like it was very busy much more active but when I say very busy that's relative. You know when people say that the big question that they ask a real estate agent is how's the market. Well that's a relative question based on the first six months of 2009. The market is on fire in Manhattan. Based on the previous ten years it's horrible and so it really depends on. Who you're asking what neighborhood their expertise is -- that -- from here down. I think we're going to see another five to 10% decline in prices before. We see some stabilization. And then I think what you're going to see. It's funny when I hear myself say this out -- with whom I've seen him say what what's going on but. I think you'll see stabilization for protracted period of time. I don't believe that there's so much pent up demand that you're going to see an immediate spike in prices and."

" They're concerned about reworking some of these mortgages and you allowed to talk about that next year a lot of these arms come due. And now on the sudden those rates are going to jump up because people's credit scores are down a little bit more in the rate environment just isn't as friendly as it was four or five years ago how big of a concern is that."

" You know I think it's a concern I have. For from my psychological well being I try not to go there -- but. I think it is a concern I happen to believe that based on their current administration's track record."

" There will be some involvement to make sure that it's not as big of an issue as it could be."

" Giving it quickly -- we -- do you think it should be should this credit be extended. No absolutely not mislead analytic and absolutely absolutely not -- this matter I think that -- founder of the headings property group I am. This anti all this these giveaways especially when you just give Italy a few people."

" Doug thanks gonna say yeah thank you. On the market movers -- I do market right now is down 54 points for the love -- we were only down about twenty -- than a second ago I look up and now we're already down fifteen him."

" I under the -- you know a lot of stuff is moving -- down how a group one of them adult education company. Check this out the SEC launched an inquiry into the way Apollo recognizes its revenue that is never good never good at an auditor that and I will. Groundout by accountants here -- week's 24 -- Apollo says though that they shifted revenue recognition from weekly to daily. Yes he's looking into -- this news of course is overshadowing the fact that they be. On there earnings -- today. Medicine love Level 3 Communications it's down it was down almost 10% earlier I remember following the stock for years. 56 years ago it was the hot stock. Communication services but they got a coal mining. His thing. It can be -- solve the Paris yeah since since they got in the coal mining and trying to -- third quarter look slide in revenue damn they are cast a positive SI guess that's somethin'. Military Panera Bread that you have in the."

" I had an -- everything at the soup bolts of the bull yeah."

" I have read they can dig out the middleman with the children is that -- percent apparently a lot of people behind the red bulls they -- recorded record revenue growth. Number two Unisys another service tech. The office services to commercial on the government. Swung to third quarter profit they haven't seen that -- revenues were down because exchange rates and number one. Because it's my favorite. Coffee. I love -- I'm Dylan never had before about Peet's Coffee I'd buy it so good about it just pains it's like got a nice clean the gun not too sharp I don't drink Starbucks now. Hit 52 week I have to Stephen Douglas raised it to abide and then it was hell else buys stock. By the copies what Stiefel is based saint -- accompanied. I actually like Starbucks. Do and I like got chocolate nuts -- both the -- chock -- and us -- I switched to which he's not an accident that -- doesn't make any sense thoughtful about it is I just like -- east -- will be inside the -- politically from the sixties remember and I -- I don't remember -- I was only alive for six months in the sixties so I had my my memory doesn't really. You know land in the column I remember the whole campaign I think I don't believe you have to now you can't bring that up experiencing. -- and -- that -- and I think I think -- actually --"

" And indymac I know you weren't alive in the sixties he had -- lesbian date on. GMAC is going to be alive into the 2006. These in the 2160s. Because they never have to make any money. All -- have to do is go out here and put their hands out S and the government will give them money."

" And it certainly true if -- talked and that being cemented in stone and then in the government's architecture that GM. Falters basically what's going on mrs. GM AC. It's turning to the governor once again for the third time. Forum for handouts two point eight billion dollars to five point six billion dollars. Remember this is a private bank has not publicly traded and what's going on -- GM AC supports GM because most of the car buyers go to GM AC to get a loan to go back into GM to buy when their cars to Macy's also supported Chrysler as well. But the problem is is that look you know not only are -- getting. You know more TARP money potentially they also are bank. Right fanatic get a kick it up the Federal Reserve of the discount window they get the FDA CD guaranteed debt there are threats from for two point 99 billion dollars. And -- FDIC guarantees. But the question is does where does this and this is the company that posted nearly twelve billion dollars in losses over the last six quarters and is trying to rollover. More than thirty billion dollars in debt right now and it's having trouble doing that because nobody in the markets want investment and and the private bank that's on that government --"

" Machines I -- put that when the stress test came out they were one of what was it ten banks that I needed short not help but those of the of those nineteen that the government identified ten that need to shore up their capital position now would they failed a stress test and the others were able to go out into the the Bharatiya markets and and it bringing back capital. They were the only ones that weren't able to do."

" That's right they're the only ones that have come back to the government since the spring stress tests and asked for more government money so. You know the question is when will they taxpayers see their money back and if it all works out the way -- it potentially is headed in that isn't that big mid GM AC gets five point eight billion dollars more on top of that. Twelve point five billion dollars -- got taxpayer money. How much money who will be with taxpayer giving GM and -- say it's it's looking towards a little bit higher than 68 billion dollars in gang. Remember the last time that. -- GM General Motors have a sixty billion dollar market cap was in 1999. So we are already way under water and and both these."

" Company here's my thing lives we get we taxpayers get preferred stock added steel. -- Maybe we deserve more than that -- we should be getting some senior bonds something that'll get paid back first it's my appliance is being goes belly up it isn't arts. Senator makes is hoping worth a little bit more to us as opposed to just we're throwing money away to -- question that."

" In other bondholders really got drilled in the restructuring of GM remember that -- bondholders were just saying. -- forget it we're looking to the union as a preference stakeholder here and the union and the government now owns you know basically GM so. And then you have GM -- so. So the question is how to get your money back how to make these businesses viable again to get return on the capital that would put an end and the chances of me now you know."

" We sell fifteen million cars a year and does not protect enough when moving all the time that's I think we're not going to do that I read nine million right now."

" When nine million for a long time right after federal and -- that we have to get at least doubled to ten and a half million dollars so until we do that we're not going to get that annual run when we do that but you went on that market cap. -- is -- we're never going to see that kind of market cap again I mean and so that's what's his that's what this debt hinging on and therefore it is."

" Up in smoke -- do we have alternatives and he is your alternative to for another bank to buy then. You know well."

" That's I'm thinking I don't know what the altered when you aren't if things when you look at their balance sheet okay they've got a hundred more than a 167. Billion dollars in debt."

" And that -- top network have only 26 billion dollars you know. And Easter that all the fever like intangibles and goodwill that you know about it comes down to nine billion I'm not worth anything -- levered up worsen Bear Stearns was at the height of the bubble so."

" I think is anathema to stop the show we're dumping money into this loser company GM AC and yet independent CIT. Still what wet written decision -- their real."

" Danger flash point now for the government is is that you may see set up an Internet bank called allied back. And they were pulling a lot of deposits to fill the balance -- holes that Jimmy C essentially."

" You -- is supposed to ring fence -- I think they do ring -- them but."

" It's good way of shoring up and telling -- investing world that -- they've got a solid balance and we have a deposit taking bank well but I banks begin AC bank Internet bank was doing there were often very very high deposit rates to pull in that money that angered the FDIC the FDA field with the forget it we're not going to guarantee your dad. That the Jimmy CNN world that pain right there and that's why they have to go back and try to get more money."

" Out of out of government on top of that more about."

" The more about serious issue right now is rolling over the massive debt."

" I guess who -- you may not the answer is say in addition Mayo trash as -- good question. You know about the nonperforming auto loans on their balance she's because we talk a lot about. The bad mortgages on these banks have we gotten the point where the unemployment rate is causal and so many of these car loans to go into the fall."

" This is a great question it's an email around -- that you know I was trying to take a look at that break down because again -- the private companies that they don't have to that issue public statements but rather public financial statements so. You know bid nonperforming loans overall is are rising so dumb and a thickening the mix there because say it started rest cap remember arrests capped. Was their mortgage operation that fell into the drink over in few years ago. Let's cap also has pulled GM AC's. Financial statements the financial results down rest cap also wondered deep into subprime. So bad that those -- and build the blacks with samples of a failing. I US auto market where consumers are not buying these cars and the failing housing markets are pulling down G and they say when a disaster."

" Where we go with somebody asked how -- may -- to have good well. From a lot from acquisitions tell them that in and and you know it's typical R&D operation at this -- I guess I'm."

" Thanks to --"

" And it make you write downs and that too about the way they should be that's impaired and -- have to live at 10000 expression it should be impaired if you guys and amortization and impairment write down. -- have you is this okay."

" Well below the Latin night we -- think that break and any did -- down. The Austin as a woman."

" Going to go it attacked us you know -- up up up up up."

" I look back button in the south common Ladd Tracie burns Chris -- don't forget to go download your the -- or -- you can watch us."

" In the little Hummer would how thankful that out of his nowhere -- that's -- down he gonna ask you -- yeah. That's actually and satellite put will push them and all the little -- I've really aren't. I that I sell former Vermont. Chris something must -- something did catch my guided damn I love history on big -- history about the story and and today's the eightieth anniversary of the great of of the crash of 1929 now it's -- it. It really wasn't the start of it the started it was actually the Thursday before when things started to get out of control then Monday black Monday. In black Tuesday two days combined the stock market went thumb on the Dow 1306. Two -- 199. By November 13 so accelerated when all -- down about two weeks later. And then but interestingly enough you can draw of really good parallel to what happened. At the -- nine the beginning of 1930 to last six months here it recovered 96% of what it lost. By Easter the following year like who don't realize that. That by Easter of 1930. We were almost a right where we were before the crash and of course all the banks started failing and that caused the Great Depression. And the Fed tightens instead of loosening. Monetary policy and that completely -- that that's why we had it. This time around that original panic. Bernanke jumped in and basically just turn on the fire hose if you will pour liquidity and -- that we can't repeat this and the threat although many will argue in the history books will be the ones that determined. Whether or not it's an apples to apples compare that's correct I mean obviously if it only happens twice in my history of our you know financial economy yet you'd think immediately -- a trend."

" Yeah exactly but that being said we're going to move on to bill Lucy author of retire in a weekend. People are worried about retirement based on the Chris said we could very well me flat line for a while who knows what's going to happen with this current. Market situation that we have three when he telling people that a lot of people have stopped contributing to their well okay they certainly got stopped the masses -- on the corporate side and and I read -- that that over 53% of people have less than 25000. Dollar seat assignment that is really bad -- that's the."

" Average figure when you're taking into account people that are in their 20s30s and forties only up into their sixties. I think that you know right now people need to continue to work because their ability to earn an income is actually -- greatest asset. But that being said there are still plenty of people have been saving for 234 decades every single pay period. They have accumulated six or seven figures and are financially prepared to retire so shouldn't harp on the bed is as funny good news out there to."

" There is the it's almost like timing it right though if he retired four years ago you were in great shape now we we you BC was commercials all outside of their actions a lot of truth to that -- now I've -- go back to work. Or maybe even reevaluate how -- are you seeing a lot of that nowadays were people are saying it's not just about either pension which is rare these days -- 401K. And then do some other things."

" Alien I think this is the thing is that there's usually some sort of a triggering event to whether it's a dollar amount -- so for example my portfolio had half a 100000750 million."

" Then I can retire because I'll be okay or the other one I -- on 55 I'm 596060. To 65 a hit an age and then I'm ready to retire."

" I think people really need to rethink that because one of the biggest mistake -- that people actually are retiring and what they really want is just to break. I mean I did research return a weekend 5000 boomers and the vast majority are just tired of waking up at 6 o'clock on Monday morning to the alarm clock."

" They're really just need certainly a respite so."

" the continually telling people now is a great time to talk with your employers about a phased retirement. And imagine if you go from a five day were -- down to a four -- work Republican extra seven or eight weeks worth of vacation per year and for a lot of people that's exactly what they want and what they need an."

" Employees now these days especially need to break don't want to have to pay that kind of got very well that's the whole -- so you can say -- although 80% of time for 80% of -- save the company money but this'll be Tina -- employees at a win win for everybody you know. But the whole notion of retiring I think it's changed and people need to rethink it -- you know all these calculators on the web you know you put in all these things and you -- much. You need to retire and inevitably has come up with like ten could zillion dollars and -- perfect major issues right for yeah its very frightening yet on how other people's really think about what they need in retirement well he."

" Here's what this group is -- mean everybody thinks there's some magic number out there and the magic number doesn't exist because everybody has their own number."

" And if she retired at the end of you know last year and he's he's so your portfolio -- twenty or 30% one -- numbers not the number anymore but you're still retired but the reality is."

" You know we have no idea what the government's going to do with tax rates we have no idea what inflation's going to be we have no idea it would do what return we're going to --"

" At retirement is based upon assumptions. So that's -- you really need to put yourself in the best position. Fundamental things diversify your portfolio mature properly allocated and if like forty different countries large caps small cap both value midcap. All sorts of different types of bonds I think the most important thing for people that are retiring nowadays because so many people don't have a traditional pension plan. Is that they need to make sure that they -- they can create their own pension plans so have they do that. They want to have anywhere from say two to five years were -- anticipated would brawls in a real safe money source."

" Are we going to see companies starting to add that now it's back I'm I'm fund Dillon my -- a job because just. Most people have taken money -- their 401K and I was going to -- that you next because he seems to think that people have not have stopped contributing and they're not come back."

" Yeah well the interesting thing is is that wind when companies started decreasing and or eliminating the company match about a year ago a lot of people some well Obama going to get the match I'm not going to put any money. Dumb move they need to definitely saved money because that that's really going to be the key to building wealth and I talk about five rules the automatic rule is making sure you have money. From every single paycheck put into your retirement -- And if you don't have the company retirement plan you have a deducted automatically from your checking -- every month. You have to build a month the build -- automatically you do stop busting my shots I've been donated every single check that out. Well war over in the I can't next well well let me address that point because here's the thing you hear a lot of advisors saying he should invest 101520%. Of your income into your 401K. Most people can't be that so I say this -- 1% can you do one -- this issue one bill and I then you're -- until the end. The other thing if you get a 3% raise save 1% spend the other two that we -- increasing your wealth. Anderson a living the same time."

" While they out bank I don't know see up at an entire weekend that baby boomers guide to making work -- Yet take a break we do you know -- can make it you know we'll talk about W so going to read we've -- that -- anti Obama time WR. On the boat that was it means."

" Look at foxbusiness.com. Live in market is down about forty points we've been holding in the zone alzheimer's non. We have four nights 45 minutes after news and good morning and the west coast would be nine point -- out there."

" Thanks for joining us do it can be colleges."

" You know where that is why I mean I know now where it is because the Philadelphia area it's okay plywood but that is in Iraq is -- some -- money -- something you should know about it is that that is where doctors got ten hours of it coming at the best."

" You know yeah."

" The fact that -- like this you know adding that rocky -- yeah by the steps that rocky ran up ineffective."

" I'm sorry achievement in that we we don't where Philadelphia is Cabrini College. It's in the northeastern suburbs of the town -- a data Pennsylvania the beautiful town radner Pennsylvania --"

" Got to that is actually very beautiful beautiful area for sure. All right now we're going to talk about -- month one things that you've been talking about is how retailers are going green and this is. -- very important because as people start to think this way. And retailers are continuing in the marketplace trends separate themselves I would think this would be one way other than price and selection that they can do that."

" exactly and a lot of the retailers are jumping on this this bandwagon of going green and most recently CVS and target."

" Our. Offering incentives for their customers they do use reusable bags."

" Still it. But president cost here is they're not -- have to put out money now to basically get the benefit of this leader -- you seen a lot of companies willing to do that."

" Yeah well target actually did some research and frothing at the purposes. Between giving incentives for the reusable bags. Or using the disposable bags it was pretty much -- watch. So fraud -- the purposes it's really not cost to them that much more money to offer the incentive. -- are using their reusable bags."

" Pat and they -- they've done -- they're testing our thoughts about. Charging for the reusable bags even if it's a nominal amounts. At least enough to what people see value in that bag the I bought it -- use it every time I -- even if you charge a dollar -- at least people will say. Look we paid for these bags so I'm going to use them."

" Yes I and that that's always an issue where. To show that there's value to a you have the consumers. Pay for something but ultimately."

" What CVS and target -- a mother we Taj are saying hey. Want to give you incentive for use in these reusable bags. And it's been it's been looked upon from the consumers as a very."

" Very good gesture as far as being environmentally sensitive by these retailers."

" And that. You know we may see other retailers jump on this bandwagon. In the 800 pound gorilla in retail space is Wal-Mart and so I'm planning on on seeing something from them in the near future."

" just -- people understand is CVS. You get attack on your bagging slightly when you come in an actor Sharon a man uses. You get a dollar basically dollar back I had CBS card you have no idea of at that lover Denny got shot give money back after awhile it's it's I think it's terrific target. Is giving our customers five cents up their bill for every reusable -- they -- especially in you know in today's environment people take anything making get back. And that seems that these product these. That it's working in these places. The companies know. Going to see any kind of return from this any time soon."

" Well farm -- public relations perspective it looks very good for these retailers. They're getting their customers and instead of from intensive purposes of using these reusable bags."

" And there's been a lot of political pressure."

" On these -- About these disposable bags now."

" They're not good for the environment they really don't break down that quickly -- they are plastic."

" So between. The the financial Tenet giving -- the customers. And the positive public relations and marketing aspects. Really make sense for for these retailers did do it."

" And data customers saying we'd rather shop that at an organization that's. Considered green than those that are not so I think it's a smart move on their part fraud that the purpose is really nominal as far as the fees from them -- test."

" just real quickly one of our viewers Tom from upstate New York City is only one green retailers. Should be looking for this holiday season. Are you seeing a lot of that web what we like to do that it might be way to separated in the marketplace but we just that we can't concentrate on that right now we're barely trying to stay afloat."

" Bob there there are retailers and in this economy they're actually doing very well."

" If you look at the wal marts of the world you look at the Best Buy shoes you look at the dollar store chains. They actually are doing very well in this economy and."

" Quite frankly they're the ones that can afford these initiatives though the idea that retailers are saying. You know we can't afford to do this because things are tight well. They probably could quite frankly some of them."

" Well hopefully it had betrayed their -- doing it I mean there's a registers out of that area and doing it well."

" That that that's right traded -- whole foods targets CBS."

" The -- giant supermarket. Change this is a trend this is a long if you go to other areas of the -- is New York in Asia reusable bags are very conduct and dive. It's very and if you look at the new. If -- look at the new Wal-Mart commercials I just saw 1 this morning. They had all the shoppers in these new Wal-Mart commercials are using reusable Wal-Mart bad you can't totally confident that I dispose of."

" let me just say that doctor Scott -- professor at business professor at Cabrini College in Philadelphia. Knowing and that rocky steps now but in beautiful northeast thank you so much for joining us today."

" Thank you thank you got to test all right done we go to break right now hat I've got some rough night and we are. Baseline an aside I am but things get you with -- let them."

" But the back to foxbusiness.com. Cutter burns we got -- I'm Chicago wrote."

" What we used to pick up dog poop if everyone gets rid of the plastic -- my little musical with compulsory use a book that they have reusable diapers right. Back in the -- of a say back in the day would come full circle. Okay reusable beverage will never ever come back again my trust me and that's I don't -- like a disposable ones."

" I just fine on the other than that look like your editing."

" Last night was the premier of this is it Michael Jackson. People that love -- this is cut from eighty hours of film based on the rehearsals and it's a very generalized statement."

" That that people loved it some people probably led to some people probably do but go ahead."

" Liz Taylor and it was the best moments all of this error yeah. Taylor on -- Michael Jackson Libby no please. Yeah Michael Jackson he gonna say it was merely adding this -- those parallel time that. Sony could Sony's Columbia Pictures bought the movie rights from AIG the promoter for sixty million dollar -- he's going to comment when he ten. I think this thing is going to be a money making machine. I don't care what you say -- make money no doubt I don't know what you say about the guys what it did whenever he's got a brilliant. Catalogue of music my kids now."

" I'm into it I gotta tell you know I would think the movie after musicians -- this is it would be about Kenny lobbyists and not about Michael Jack but that's what I think about."

" It's not a mortgage this is it felt like you know. Went on so this sick it's that -- it was supposed to be this is it this so that show the celebration and La mode. Wrong with celebrating traveling. Along the dvd in 30. Hits you on the spot."

" Ryan Clark -- here the senior VP and general manager of fly dot com and Brian -- you did tell us that we want to go anywhere this holiday season. You better start making plans and her."

" What a difference a year makes I'm telling you for Thanksgiving you need to book now and for Christmas you need to book before Thanksgiving. Why. Last year the economy tanks not a lot of thought confidence in the economy and there were a lot of deals a lot of seats still left over very close in two. That travel -- than this year it's very very different people are a little bit more confident cautious but little bit more confidence in the economy. The airlines continue to have airplanes parked in the desert they haven't brought them back and as a result. People are booking the seats that exist. Not a lot of seats left for -- things get even for non peak I was gonna say this by an even a it yet the September a child from Austin Texas the Memphis you would think. That flight is a Sunday morning flight from. From Austin in Memphis would not be packed every single seat on that plane was full of when he don't have a lot of airplanes around is not a lot of seats left for those who want to travel. Are there any good times to travel I mean we look at like. We till January if you want to take that holiday trip or go early November -- there's two stories here for the Thanksgiving holiday you can find deals. The peak days of -- Wednesday going outbound and Sunday -- her that some airlines are tacking on extra -- they all travel on those high Dayton mayors are very very high we're seen six -- 700 dollar fares return. For a lot of those peak day flights but what we want to see people do it flat accomplishing a lot of their interest in things for example flight Tuesday collecting early. And come back on Saturday you can save yourself a 150 to 200 dollars. If you fly to return on Friday you can save 300 to 350. Dollars and the deals are out there. What about -- places to go say I forget about going home not forget about it you're already going home on Thanksgiving and for Christmas or new years. Calm and ready beach destinations or is he destinations anything -- they're actually still deals right now she. What used to be this vacation is now people -- domestic so there are a lot of trips domestically we're still seeing the typical Los Angeles. New York Las Vegas is still very hot from the west coast were seen a lot of Hawaii. As well but we're not -- exotic trips that you might have seen it passed so what can tell us what makes -- dot -- different from all the other. Book a flight Expedia is out there sure a lot of comments and airfare search engine go to fly dot com. Putting yours start city in your destination airport and -- dates and will give you real time fares for the flights that you were looking for. We search airlines we search online travel agencies we searched airfare consolidators. Especially for international trips that can be very very interest and you can find some great fares. Then we help you figure out where to book those those flights were not a booking engine and that was an -- question -- the flight -- is not the best booking agent for that particular we are going to help you figure out where to book -- Hotels anything like that is there any LC guys who isn't just strictly fine and and right now we're homing skills it's a new site were honed her skills on the air side. Now we hope and expect to get into the hotel hop package cars screens as a monster earlier this year we did in February -- in the midst of it all away and a perfect -- online -- I actually a great time it's such a confusing situation where people are very confused when they try to book airfare. And we found we think -- deliver a very on cluttered very clean it here."

" Yeah either tell me like what -- what display economic have to pay six bucks for a cookie this I will repeat 'til I die I. Baggage fees all that's up to like get all that information. When I come here."

" You're gonna get the base fares in the -- fees and we can also show you eventually will be able to show all of those baggage fees and taxes and when it. Most of building the product out. But it's it's it's definitely the trend that's where airlines are going just add this season in travelers really need to educate themselves on what this these are good speaking of those fees -- it a little bit smoking years and you don't have all those built in your site yet. But you probably know a little bit about a -- Southwest Airlines a big commercial. -- ad push going on right now that bag is free that bag is straight talk about the banks of pretty. But are their fares a little bit more because the bags are free and it is this sort of the thing that they're doing now. Southwest is still low fare carrier they're still they're pushing very nice product they've taken different tact than everybody else. The other airlines -- affect most airlines are still struggling financially and they found an outlet where they can charge fees. On the observation I see is that travelers are confused in and."

" Little concerned about what these fees are because they don't know what they are up for sick. They just pile all the fees into one flat cost less than they used to do right. Or at this noon notion of nickel and -- doesn't that outraged the consumer much more than just say hey let's 400 bucks."

" What I see is that travelers still focus on the core price. They are most interested in what the lowest prices the core prices in the market. They learn either later or will accept later a slightly higher fees for. Piece of meal on board or baggage -- the airport or a hotel -- with a book or we're here we're trying to get on the Internet. That's great stuff fear and expand this to cars you said and -- hotel package is the others everything. Actually the influence of Brian thanks for joining surrogate thank -- guidelines these."

" EVP general manager fly dot com check it out if you wanna. Travels invent this holiday season. Can't go to flight outcome right now -- figure out where the lowest there is because they're sitting in the book are you going going gone home and gone home for Thanksgiving that's exactly right on not for Christmas though I will be here while -- else is -- I'm gonna go home for Thanksgiving Georgia Tech Georgia got to see on the water play. All and then I'm off this with them them of that no I'm kidding about that. She's easy practically down that fault we don't but a lot of people that we don't have a lot of people do they get her ducking. -- had to -- up and now that is that that is a that the Turkey. With a chicken stuffed in it and then -- ducks -- did net -- And you put the whole thing in a big pan of Greece. He had not yet after Duncan you -- that I have that -- on a terror done in Turkey duck chicken or duck in. You're going to -- that we are going to eat that all the essence coming up we have I got -- I hear me lasagna. Please think we're caught on its -- negative article that's okay. It was for the businesses and the."