Buffett's $44B Bet

" Happy Election Day welcome to Fox Business laugh at did you vote. Would you ask everybody believes that you vote machinists thickness is -- I didn't vote already. And I'm I'm I'm sad to say it was the only person act how may be the only person may act up at 8:30 this morning."

" Well most people -- at 830 know I don't know I don't know I don't work for six hours that anything I. Like break my after lunch. The robot to break whenever I'm kitty bosses are listening on -- angry I can't say that."

" I was a little bizarre and very easy wake up go wow. It is time."

" Of that. Because I'm Betty because any of them. I'm -- would you bet that it's going to be great -- because here's why you can't afford to live in New Jersey the property taxes out of control for someone should get out there."

" And vote for change I think there's apathy and having you don't believe in change and we see that now exactly a year. Since the presidential election last year and he was out or going to see change nothing change -- politicians. One group of politicians sends -- to have politicians they say change and you never get change."

" That's sad that I have to move where am I going to go. -- must go to Alabama."

" Switzerland's. Spaghetti and I'm not going to."

" Yes I did my good in those countries I'm not going to those countries I'm gonna blow some well I think the data were not that I am and not have to pay."

" Three quarters of my paycheck to property. 01 half Babel was brunette. All we add to that community."

" Nearby -- the market is 51 points down also waiting again like meeting yesterday really SA were up 100. Down a bond before he finished up 75. Today we were down the you premarket trading we are down a lot polymer Europe's lead got kind of scary there for allow. Believe we -- start okay we've just sort of been hanging around this minus. Thirty minus fifty minus sixty all day long."

" Gold on fire again. So is his little flight to safety of people concerned is this it's getting a dollar was up the morale was up well you know earlier in the day so what are you know what are we saying we saw yesterday we pulled back yesterday after being up a time and there's still these worries about whether the economy's. Get any better."

" And we got earnings today from you know some companies have looked pretty good when it's not a lot that's about the the course today we also got -- Warren Buffett of Berkshire Hathaway announcing he's it has been 44 billion dollars to buy a a railroad company that already -- a big chunk of an. Burlington northern Santa phase of talk at length about that yet."

" big deal it's and it's one of the biggest deals that -- Warren Buffett has been involved in -- biggest one he's he's ever done great list -- will be interviewing Warren -- at 3 PM on Fox Business Network clears you gotta check that out -- thinking and eastern he and then last night after the -- we had blackened -- connect the blackened and and I still haven't we -- gone on that's something but --"

" Today about how important that was going to be in the market moving forward that that these companies solve value and that they they saw they could unlock value. In making these deals a couple of things you want to be aware of and there are all the top stories going on right now on Fox Business -- consummate she'd check it out additional forty talked about. Johnson & Johnson they're going to cut somewhere between 16400. Jobs take out the story on foxbusiness.com. Ken sweet actually wrote it it a mile talks about the fact that he we are they need to make up of a one point seven billion dollars by the end of 2011. So. A big part of it is cutting jobs."

" And it's funny in reading about it. They had it's almost like -- they haven't done a major restructurings since 2007. That's only two years ago -- makes it sound like it's been so long since they had to cut. Three or 4% of the workforce two years ago now the coming right back again cutting an additional 7% of the workforce by the end of 2000 when can I say I'm sorry. Again this affect in New Jersey residents get involved and it California property taxes government illusion that. -- that you really need to move to Sweden with Tom what else are we talking about on foxnews.com. And not dye my hair that's what we're talking about. -- below the shares is not -- very -- also on the web if they can't manufacture and I'd love this because if you remember in the 2004 elections there was some controversy. Because the CEO at the time with a big bush supporter yeah they also had a boating business. Which they've since sold money losing but became very controversial because the CEO was a big bush supporter in the 2004 elections. His system being used to -- votes. So it makes you say. -- and nevertheless the shares are down very -- third quarter earnings. No surprise the ATM's although I tell you what I am a little surprised because it's him -- like three bucks these days."

" Goes right in the pocket of the bankers and mountain so concerned about title in the -- that's I imagine it's very good these very difficult to separate yourself from other. ATM machine makers who had a unique one ATM machine better than anything else I have been charged exorbitant amount for possibly can say."

" Even -- CEO during the elections shouldn't just kept his mouth so. One of those times where you just say I'm going to guess political views to myself that use my voting machines and be happy Philadelphia in the marketplace sounds you know again okay the third story on foxbusiness.com."

" That we look at that today. Viacom. 15% jump in third quarter earnings citing too big movies and you know it just goes to show you. -- action packed thriller with a lot of machines and explosions and stuff like that and you make a lot of money transformers. And GI Joe the rise of the cobra -- On the big time money for Viacom and that helped them with this big quarter. And they really haven't transformers is gone the dvd -- I didn't -- commercial ads that are just now going to dvd and that's where as we know. The residual earnings stream really kicks in."

" Doesn't -- any good now."

" Transformer is good for you held. If you like action and cool special effects that's what's good for GI Joe probably the same thing but unless the basis adding G the GI -- film I was going to -- total residuals. When they start selling product come holiday season not that that's. Sounds like it is going to be identical to bring back the old -- today GI -- night. I don't remember exactly and it yet when those things in the back we've pushed it. And he had like a conga come fu grip or something I don't remember exactly what it was that is different than they have now. It was -- a -- about a man anybody knows of talking about that they had Six Million Dollar Man ultimately. Remove part of his arm and -- they would have a lot of I can why can't I if you looked at the why and and it would be like a magnifying."

" And the radical of those of -- woman until the same thing happens with --"

" you have Viacom right now being on an eclectic basic science and presented at 57 cents that's on stocks. Up about three quarters of 1% and by the way that was written by Matt Egan who -- suffering and right now. That is a Mets fan so here's the deal with the Yankees -- Phillies in the World Series is a jets fan and it just got --"

" The second time this year killing of dolphins really -- note that Viacom the parent of MTV and Comedy Central and what is and to be doing these days is a -- is fodder for another show it might be an."

" Thumb but when I'm part of the MTV generation who are going to move on I'm going to talk markets and Jeff Mortimer is here with a senior vice president client astronaut. MTV generational Islam and daring art can you and I guess. Are we MTV generation. That's. I was in the I guess it depends on exactly what you're I think I'm jutting up at the very end of gen -- I think I am but I might be mistaken I don't know I think I."

" The first video video kill the radio -- we were teenagers."

" None. Young act now you're younger. We adjust here and the cost I don't know one question why do you and -- you guys tell us Jeff what do you make of by the actions today and yesterday. You know you sort of struggle that ended in positive territory yesterday in this morning it looked like he could open up really dead but we're we're sort of you know -- in and I saw features is just as you mentioned futures down about a hundred Dow points earlier this morning pre open as Asia was down. Asia and Europe -- significantly. So I I think come. Perhaps the market by a long long term construct on market I think in the short run I think we mean pull back of that. I think a correction of five to 10% is healthy. We've been spoiled by this move since March ninth that has been almost straight up. And healthy markets also pause then and as you get to the Fed releasing. An announcement tomorrow and you get too low labor report coming out Friday. The market may again digest you know how long the Fed will stay at zero and now we'll get another print on the employment. You know employer unemployment rate and see if that takes unfortunately and a double digits and I think the market in coming. May begin -- do you see that as a psychological number if you do get to 10% because of me. Nine point nine versus 10% and everybody knows is really more than. I think the market yet. Most experts have said that we will that we will going to double digits so I don't know if it's a psychological and how much markets aren't discounted to me it's just it's another number it's another ten -- I agree with you but she got fed funds futures pricing. Presuming that we're not going to see rates moved to mimic that their earliest grades so. Really we're looking at what kind of language they're going to assess -- that may move that may move that the futures market's been very reluctant to price in. A hike any time sooner than that. As language changes in the Fed's statement those teachers -- quickly they do move around those futures -- quickly discounted a different future."

" we and as you said we -- unemployment going up so this pullback. Is it natural or is it just that we get ahead of ourselves. And there was too much momentum and Bob we have to take a step back and start to analyze these fundamentals properly again."

" 64000 dollar question I I think I do not think we got too far ahead of ourselves I look at that. The correction or above the bear market that. That have a Dow fall to 6500 as an overreaction. We went to the precipice we looked over markets reflected that. Therefore I think a lot of the snap back just going back to me we didn't fall off a cliff. And so if you say 2000 or 2503000. Dow points are just to come back from the cliff in the year up you know five or 10% from there they. Should look at the world war more. That it wasn't such of the vote for the markets -- UV but instead was more more rational because it was so irrational -- the loan office."

" So much money on the sidelines and I didn't know that it even got to talk about unions -- yes and so we're expecting it we still I think of people especially with schools action today. A lot of concern out there. So okay so you guys are launching these noon ETFs with no fees in December and understands an ATF. You can trade throughout the day like a stock for a and most ETFs charged a cook a -- every time you make that trade much like you make -- stop treatment and you are not Charles Schwab now. Launching ETF that don't have this week."

" For Schwab clients in Schwab accounts if they trade on line. If if you have another brokerage account and you trade ETF you would -- you would pay commission member Schwab clients there's no commission. -- I was gonna say what separates these ETFs what areas are you win because -- such a popular way to invest because -- you know the basket -- a little -- risk of having to -- stock -- you just don't know. Exactly what's going on and really does at this point but how do you separate years from some in the iShares ETFs that are out there -- one. So what we have done is these are not. -- TT yes were not playing some niche of some market or some sector and these are broad based broad market exposure. -- US and international that we launched today. How how we are differentiating ourselves is on our fees. These are indexed product they become a lot of ties and therefore the lowest expense ratio tends to Wynton and we price them seven of our seven -- of the ETFs for four others will launch in December of this year. Are the lowest cost of the TS in their categories so. And with the free commission for Schwab clients again trading on line I would think that's what begins to differentiate you from others. Most of the TF sold all you care about the new TTFs in the GOP in the silver and everything else. Those some have been successful summit not Schwab is going to tend not to play and that's basis going to come with court. With core competency with with core product. Where most of our clients' money is so we want to give them product where they feel most comfortable that's still give me an example you have -- indexed with the S&P 500 area and not quite -- to -- using Dow Jones is our next provider so it would be the 750 largest companies traded in the US players are large cap. The small cap is the next 1750. Companies traded and you. We have a broad market which is the top 2500 companies traded in the US by ranked by Dow Jones. Our internationalist by foot sea area next provider of the largest the next provider outside of the US. And it covers 90% of the market cap of the developed world is that is that he -- that -- that true."

" So let's talk about why would own knees as opposed to a mutual fund and the biggest difference then is because there's no fees. When I treatment mutual funds so then that the big difference here is I entry throughout today."

" Trade throughout the day. Again. Most mutual funds again if you -- it indexed mutual fund yes you also pay tend to pay lo -- these are passive products if you want to try to beat the market these are these are not free these -- You can trade throughout the day and never looks censorship yes so and also -- submission ETFs are designed. Because and -- want to get too deep but because of the eighty -- has managed. It's it trades in and out of in kind shares and so when when -- sale takes place actually shares of distribute out of the fund to the marketplace. That that that the shareholders and sells and he kept you not realize. Realized gains you you pass a tax efficient vehicle on -- but when you get a dividend distribution from NE TF it goes into a different accounts -- there isn't taxable you can't have that reinvested. Into the ATF. I I we are just I'm just I'm the manager of these yet I'm not sure about the the taxis but I believe that is correct the dividends that that each effort throw off would be taxable right just as it would be if you don't stop right and and so. They cannot be you have to somehow get that money back -- cannot automatically have your dividends reinvested into need that's correct and you can't and mutual fund yes mutual fund distributes because of meat it knows the net asset value at which you will buy that that the open end mutual fund. On a closed and an RE TF which trades throughout the day. Where would that money be arrested who would trade at first therefore you have to treat yourself to."

" Jeff can of the Washington they go to your website Schwab dot com to find out of the details about each -- if you are running an ad campaign look in your Wall Street Journal their articles we major a press release yesterday so. Certainly check it out but Schwab dot com as a great place to start Jeff -- thank you very much thank you Chris -- is -- can't chief investment officer shot from investment management in town from San Francisco and the slowdown on the -- means yes always always a good way to invest because. Let me -- it takes away you having to go in and picked the stock. And put all your eggs in that basket -- you know even if you buy five or six stocks is still not that respect you as much as you are as it combines the -- waited."

" I agree although I worry sometimes she ruled hold ETFs no they had the option to trade throughout the day. That's that they they afford to have as opposed to thinking rationally and waiting and it's bright and."

" And also the other ones that are. Double and triple inverse ETFs also get a lot of people in trouble is they reset in the days of aids and aren't -- a hard time that you want to pulled it from more than one day you life have a hard time making money on that we have a very volatile market like the -- exceptionally love it definitely expected by the I think Brittany got back about one operative at the way in one -- And his big bet on the US economy those are his words to."

" I have it today -- both. Then -- tonight at capitol please do image especially here in Jersey get -- but a guy. And also make sure you download a great apps for your -- you can watch us. I don't know why you're in the voting Booth waiting until well."

" And it's -- agree feature on there as well you can put the stocks -- you want to follow and you can put you know alerts on there as well so when it's not it's a certain price up down and alerts you. Go ahead make the move or vote. Down vote won't really if you vote if you do get sick."

" Seminole high and I had to let it go I'm -- I -- ran this campaign action by Jesse says thank goodness talking about. Warren Buffett's big big deal. Berkshire Hathaway attic again making big news yeah fourth largest in any deal in the -- the big one in terms of price -- big one in terms of timing. And big run in terms of who's doing it obviously Berkshire Hathaway island ad run by. Warren Buffett making a big plane the railroad sector buying the rest of the shares that he already didn't own in Burlington northern. That's stock is up an offer prices around hundred bucks a pop and sent the stock is up near about a hundred bucks. -- Make an argument for the fact that we're going to see an economic recovery happening as a result we're gonna get my goods imported we're going to need to ship stuff -- round and that stuff is an of course need to go. On not on rails then it there's an energy play to and Burlington northern -- a lot of coal around and you can see you know coal prices have come down but we're going to see. Coal prices go up as we -- more pressure on commodities and perhaps and we start to pick up on demanding conception and energy. So there's that energy sort of related play and then now last but not least there's justice and he's a value investor and things. Are cheaper now yeah believes that this one is another person not well Brett thinks it militants in northern out. Still has produced about 10% of their actions and unite statements in this isn't. The dance place on both sides here I think especially I mean god only knows it's not with cap and trade but. He's got is he's got his hands and able all pieces of rain and as you know this isn't the first time -- honesty he actually has his hands in a bunch of different energy related properties he's. Involved in in that he actually owns a stake in Union Pacific railroad as well so. He's thinking of that on energy and it's happening directly in -- happening indirectly as -- and isn't pretty good track record and so we hear of yet another data point to make him think that we're going to see commodity prices energy start to pick up and demand starts up a sign."

" Somebody would pay 44 billion dollars -- of railway private when he still owns a chunk of Union Pacific Norfolk Southern and heavy into the competition as well so that's kind of strange to look at that the look at one and wonder why he would do that because. There's a little cannibalism and days early has been and any."

" I'd say that right he has no interest in buying the others right he's not interested in buying it so you wonder whether or not he's going to start to pull out of the other states and that he denies. Them more. Singling focus on this pure play acquisition in cancer as opposed to being kind of a minority investments on to other places."

" You know its also funny real quick about the coal shipping coal around the country you've got very fuel efficient. Mode of transportation in trains and yet he's moving around coal which is seen as a very dirty. Energy source and you know the anti cap and trade the anti Obama clean energy deal but yet so much of our electricity is still there."

" Right bode well let me say dirty with coal is actually the processing it's a plant and and and and kind of the processing of of cool it's not it can mean there's a such a thing as clean coal technology and people are investing in and maybe that's. How he's also getting involved there is that -- close cheap and that's the biggest Indiana she let there ways to make it -- and maybe he's going in on that -- We should mention again -- reclaim his interviewing -- Oracle of Omaha 3 PM this afternoon on Fox Business Network summation to an incident went into the theater. -- money thanks and we appreciate it. -- boat yet."

" Yeah yeah. Managing director Morgan Keegan Arthur Hatfield. Joins us right now and Arthur wants to talk a little more about this deal this Richard at that we deal with Burlington northern out their welcome -- the show first of all. Thank you for -- enemy he asked you about what you think about the deal is just first life."

" I think it's a great deal deal for Burlington northern shareholders on they're getting a great price he's paying a healthy premium. Even on peak earnings that they generated last year so there's a great deal for them and probably will be a very good deal for him in the long run as a business that. It is you say moves a lot of the products that move around this country it also generates a lot of cash and and it's a business that fits this kind of value investing cash flow generation business that -- benefit him for a long time to come."

" You know he's not taken on ten billion dollars in Burlington this debt as well so these. He's not totally risk free in this deal do you really believe that this isn't -- bet on economic recovery or is this just. Warren Buffett may be having something up his sleeve that we don't know about."

" Now I I think he's making as he said. A big bet on America in the long term and I and I think that's a good bet. You know we will have an economic recovery I can't tell you when it's going to occur probably not this year maybe start to slowly see it next year. But he is a very long term investors so he's not making of that over the next twelve months. He's making a better over the next five to ten years I don't think there's anything. The surprising or he knows anything. Here he unique to this company I think he's -- saw an opportunity. With the valuation that the company had right now that to basically buy this company. At the trough for the economy and getting great value that he will. He will reap the benefits and his shareholders of Berkshire Hathaway will reap the benefits of over the next five to ten years with regards to the debt the ten billion. Railroads -- severely under leverage that there's really not a lot of risk of their ability to fund that that over time. They said they generate for tremendous amounts hundreds of millions of dollars a year in free cash their ability to fund that dad is is is pretty. Low risk at this point in time."

" I think what you make of his saw holdings and some of the other railroads studied -- divest Daryn and concentrate solely you would Burlington northern -- moving forward."

" Well it's hard to get into the mind of mister -- I'm sure his announcement today was a surprise a lot of people I think that's more contingent on. What the the Justice Department wants him to do with regards to and I trust issues there there may be some concerns about him. And the positions he has another railroads in the possibility that if he -- too much of all the railroads that you can have them. Anticompetitive. Issues create there little -- up over time so I wouldn't be surprised if we saw him divest those holdings."

" Are you follow many of the transportation stocks. Besides Burlington CSX. Nor full Union Pacific. What is seen in the sector as a -- are you seeing any signs of recovery coming out of these companies."

" And not really we're we're say in the economy bottom out you know we're seeing very. Easy comparisons of volumes last year so looks like things are getting a little bit better but. Basically they flattened out here we're still down. Close to seventeen to 1818%. On volumes with regards to where they were two years ago. So we're not seeing a real healthy recovery at this point I think if you look at inventories that looks like. Kind of they've been work down to a sustainable level at current GDP. And until we get a real kind of healthy pick up an industrial production. And a more sustainable pick up in GDP and always that third quarter was one good number of what we need that for several quarters to see. Freight volumes pick up in at this point in time. It's fair to say that we see in the economy bottom and it's basic amount or we're not really seeing growth takeoff at this point in time."

" Yes that's what it's all things very instinct. Art -- in -- the transportation stocks thanks for being with us on such short notice based on this you know breaking news today. Thank you thanks so we go from there rails to the autos -- I have my old theory on the what's going to happen with the auto industry the first -- going to shout out to. Bill this neck as senior editor at Edmunds dot com. -- of course have been under a little heat lately thanks to the White House the first week -- talk about these auto numbers and what you're expecting. From the auto industry today. Look hi can you -- yes yes I can't thank you okay also what do you expecting out of the auto numbers today."

" Well I think we're going to see at least us something of a minor -- BS -- today but generally yeah we're looking for an industry sucks -- compared to last month and -- will be the first time this year. That will be. You know over the ten million seasonally adjusted rate of sales mark. Without the cash for car -- it would be the first month that will be airing at ten million mark this year."

" And do we get to be continued -- to be selected a continuous. Uptick such insane recovery November December ended 2010. Because that ten to ten and a half million is really. The very bottom of -- that these automotive manufactures have to stay in in order to stay solvent Toyota GM and Chrysler are right about that."

" Yeah that's great press question Chris I think right now what what won't be difficult maybe your body getting in but once this weather in November and December will all sort of at least continue this mildly encouraging -- not traditionally had in the history of news in -- car businesses is that there's the dark marks the winner November December January. Are not historically good months for car sales so it's it's. Quite likely that -- November and December of eighty down from this figure if that's the case and it's difficult to what to generate you know what might be. Charges momentum might think in the market right now are sales people."

" Neither is no case for an improving auto industry anytime soon right you got cash for congress. God GM sixty day guarantee overs so they stalled sales from 30 we just talked about how we're anticipating higher unemployment and -- ten. Credits not loosening anytime soon so -- sick kids for this industry go I -- white -- have been dismal opening."

" I think -- great Tracy I think any kind of -- an -- slaughtering one probably your best. As everybody knows -- automobiles and the second largest household -- it it's -- me you know and -- of buying -- house itself and I -- for people without jobs you know -- they still fear losing their jobs you're not going to see people feel very -- that I think about buying cars and -- in 2000 and -- it is this the ultimate -- pigeons and robust sort of me that you know turnaround situations. In the foreseeable -- right."

" Bill looks like -- okay based on what we heard from them yesterday certainly we're expecting a little better things from GM today. Chrysler this evening going in the wrong direction even with all the help that they've gotten. While we're going to hear from Sergio march the only later on the week about his five year plan do you expect to hear anything that would that would impress you. From marching on."

" Yeah that could -- my deep chuckles when my favorite cars like ever. Let me ask you -- seven at the American car dealers niece on Disney's actually have a future or is Nissan the next to go down."

" I'll know I think Nissan -- future yeah I think yes you know they they -- seem to well like every a lot of other car companies every -- only -- a lot of our companies seem to have been caught you know little bit unaware spy but what happened with our meats by -- consumer tastes shifted. Q you know smaller cars and working -- bars and doss yeah they're working on an answer for that idea they have a pretty highly touted electric car. That they planned introduced some limited market next year. They're going to get more deeply into -- I think a company that knows how to shift gears they just need to get the gearbox fold -- up to the wheels first."

" And I -- well we appreciate it thanks them -- this Nicholas senior editor from Edmunds dot com let's check in with him later obviously as. No this is one of those things that very important October to be such huge month for them."

" They don't and Smith we we don't talk enough about the bar and autos because we don't care because we're not without taxpayer dollars invest in them I -- but -- to me to -- Come on come all but about it. Million. I didn't I just think it's hard on the other --"

" A lot of a lot of cars out there that are ugly for modeling definitely -- don't talk about before and automotive manufactures the only Kia built a huge plant in Georgia -- hired a ton of people in their hiring more right now they're sifting through 43000. Applications. That they received for this new -- I mean. Yes -- based. But is unlikely -- with plants here in the states -- and now has thousands of American."

" But we had -- gasoline here is our. Auto expert here at fox saying that can't come along way it is a much better car than what it used to -- the -- center that Sunday's well. Dominant position but would you buy a Hyundai."

" I might. I might. All right we got to move I don't know I don't know cause I live in the city he's facing a show me around the fact that and we come back then got to get yeah -- had a there -- a lot of monopoly but one."

" I welcome back to the -- pattern burns with you thanks for tuning in Nam were down right now 4048. Points on the Dallas is really -- with what we've been. All day Tracy some stocks and move -- some are moving down what caught -- right today in terms of the five movies of the day."

" Energizer Holdings mean because anything the energizer bunny isn't anything that doesn't money when you say has all the of course that announcement think -- the fourth quarter earnings down from price here because of job -- charges you know -- outcome is cutting jobs we don't think about the eight. The complimentary charges that come with laying people off. They got smacked by the basically people are buying batteries. Which blows my mind because it from I don't day without batteries in my house and goes in a panic mode because some electronic toy doesn't work. Energizer also though Schick razors -- I did not know that it's interesting they won the title one bump into one -- Gillette. And so they're gonna carry him and so and it -- down on the flip side I got a bunch that are living up. Synchronize technologies this isn't e-commerce transaction site so they've got great great customers lakes Cingular Vonage Verizon. Seen big increases e-commerce business as a -- stock at a really nice bump up 10% last I -- number three we talked about this before Peet's Coffee. Peet's Coffee at 52 week high was upgraded by Stiefel Nicholas. And actually the coughing has gotten really great grades if you would from consumer reports of the stock the companies doing very well they're going to buy. Dijjer coffee for about 213 million so what this is -- common not just the looks. Now they don't have the franchises like Starbucks and they're on the franchise it's not a beat him in the food stores. They'll beat them and -- homes up like people at home I went up by us are not see that's my question is where's the growth coming from and if you tell me that's Johnston hall grocery stores things like that open. You know if it's not it's good coffee had to have it all might not -- I'm sure it's good it's good time. But here's the other two movies though we talked about ready Black & Decker. Stanley Works announced they were going to buy this -- last night after -- about four point five billion dollar deal to acquire Black & Decker. Basically create a more powerful tool giant I know that it's somebody's testosterone that allies eleven. And that's when you say tools to say Stanley Black & Decker all three of them get an out yet they'll hammer and so on and on one not. -- I don't go near Home Depot for that exact reason and none of your big -- today S&P 500 leader is Burlington northern we didn't you know -- in the field adept with -- are Warren Buffett coming in. Bind their remaining 77 point 4%. Paying -- Gaza share taken on ten billion dollars worth of debt and again. Burlington northern still supplies Simpson of the country's electricity I think that's important point that we yeah. You know it's just don't really think about you don't you don't you think it's a Coldplay and."

" It is also cool place to prevent -- cold the way. Articles played as a -- play. Com by the -- mutual funds and how all of us not almost but the great majority of us me included lazy sack that I am. I just yeah I set my 401K -- and diversified. In mutual funds. And that's it won't touch it I don't look at it and I know it's all about more than that some of the units can tell me that I'm the total moron forgot that in -- that I. Me. And that magazine deputy managing director Dow Jones investment banker and he does going to tell me that there are certain things I need to keep my eye on when it comes -- mutual funds. And needed check on a regular basis that's a -- Tellme isn't."

" Yes I think the most good thing that you need to see is the book the fine print -- spot be able to pick up the phone and actually find out. When do these -- change in what state has a lot of things a lot of them in the fine print. And what we have discovered in this very. Sort of unveiling court case in the Supreme Court is that a group of investors have actually sued. The for the board and the manages all of this particular fund because they have been there will be all the charged compared to the big institutions pension funds."

" this happens yes I can I can name many mutual fund companies that have done this where they charge a little guys like me knew more than they charge institutional accidentally but. With all due respect to the little guys we could in theory go one Morningstar and figure this out it's right therefore."

" Yes and no I think it is very easy to find out what the basic constructionist. What you cannot find out as the quality of service because reminded the fee structure depends on the quality of service and that's been content area because to be very honest with you."

" And manager can easily say look at charging these guys lower fees because they're doing X amount of business and yet Todd junior high fees because of this point his. I can go back and forth the key here is the -- the conflict of interest between. The manners of a fond of the board of directors that's exactly do they we see in companies he. Who -- the board of directors in many cases I'm not able to protect the field of interest."

" It's exactly this -- situation."

" we pay he essentially if you -- employee got a 401K you're paying somebody to manage your 401K that's her and then. They're using. Mutual funds that are. In many cases actively managed by somebody else that you got always people managing yet that's why you feel that you feel like you don't have to go on the on the web says another call anybody. Fidelity's taking care of it -- Fidelity as Pimco funds in this and that and -- and their managers are taking care of it and that's why. I'm paying fees and I'm fine with that as long as they give me return I think that's what most people feel."

" The thing is I think that -- what it's come into the spotlight is because that people are also charging fees for many assets that should have gone down so think about it. If you haven't made any money. The -- still paying fees them but the question is -- and what what can probably come out of over the coming months is that if in particular mutual fund. Has long been able to beat the benchmark index all forget forget that even as amenable to deliver. The cause of the times why shouldn't take much to be chops and I think that the the question that in August. And the Kaye in the court going forward."

" But this case and I remember it was from 2004. And prior to this no one questioned because they were making money yet. So no one looked at any statements I mean this is -- much you know. Days double a lover against -- we are again everyone's getting all fired up its act the boards for not paying attention shareholders who so you know to chris' point. He and his stuff wolf we'll hand our stuff up you pay for that service you made its choice you happen to choose so mark. They didn't make -- money that's your head."

" That's that's a good of the nation and the reason why we have to discuss this today is because in the -- spend the court."

" The one of the job that she said look let the market. Defined yet on the -- up."

" There was one job action movies as and the said wait a minute haven't always seen -- actually does not."

" Define what is -- and in many cases actually."

" The Pullman action has to suffer so that's the reason why because of the disagreement on the bench and that's what we have in this case and."

" That isn't the same and you know I invest in in this Lehman Brothers stock and they -- making risky bets this is it bearish I mean -- synonymous there's the same thing going on I needed that with Lehman I -- they can do the right job. They didn't again does not fall on the -- of the shareholder."

" Indeed of the thing and the only difference is that when investing in Lehman's other other. Institution he could easily have taken money away quickly put it overnight somewhere else but if you are. If investments for -- of the counts is on the breakup fees tunnels have been. -- you move your money away it takes a bit of time to confine the light on how often miniatures of poker he -- him once affections distant enough."

" This Odyssey the supreme court's going to come down a decision at some point time involving this but it does sound like. More clarity is needed not to notice of with a customer -- will this be a part of the other financial regulation that's going on capital right now with a set to be something that is and you look at some."

" But no dissidents have been bought about said amendment given the fact that we are going through a phase of that. In this -- like something look at it and let's -- this laws the laws that you have to live and guides and took on these. It dates back to 1970. At a time when people call that free market capitalism will protect investor. Unfortunately it doesn't so I think it's time after forty years that we do need to believe isn't just laws these laws that -- have some even more confidence -- what -- have --"

" And now I do think a little bit of the blame has to fall on the shoulder of the fund its. Holder because you've got to read the documents even if you do what you do in the and you just click away on your company's website and by a bunch of funds you gotta read this stuff because what the stuff comes -- now doesn't it. It does. And now you know."

" It comes in the mail but the fee structure odd stuff doesn't -- comes in the mail is this is this is what do you the value of your holdings were last quoted as to what it is this quarter. Each one of your holdings this is the percentage that's grown or has gone down over -- years I have exits show up at your house."

" Of these funds and in my mind -- throw out. -- time do you think -- they're -- this."

" resolve this pending real because -- tickets as noted several miles because what's happened is that some of our -- cases and look cool actually has basically. Voted in favor of the manages -- the positive that'll happen in -- one investors that they were able to get to hear me. And the Supreme Court. -- the Supreme Court took a few who -- favour of the small investors than we do have an elaborate process that'll unveil. -- to be dumping of the rules but if they used not I doubt it."

" With the Vietnamese but he -- do use them is basically open and shut case. This one investor and have to face the same music that is simple enough tortillas."

" I'm done the job thanks -- banking I've done not of course deputy managing director Dow Jones investor banker getting as of today."

" On -- Iowa it with me for the makes a great point now because it's the politically right thing to do now is to look out for the best interest of the little guy and so something will happen whether it should or shouldn't."

" another story he of these little guys CIT has been providing finance have a little guys all over the country to talk about the impact -- CIT's bankruptcy will have on. The clothing industry and the subsequent retail and."

" Donuts and Bob -- and Bob it's CIT plausible and gathers a lot so we'll get fat and more are we come back. Foxbusiness.com. Live it's Election Day if I haven't mentioned that yet you should probably go out and vote. You really should it's the thing to do a thing to do let your voice be heard don't let your vote go wasted. Make a difference and if you're living in Jersey you know what I'm saying they feel the pains -- you personally property taxes to count me. All right so I don't put my -- today could be until today."

" What -- yours you'll call my two things first of law and want to comment on what John Gault wrote down one of our viewers electric cars are comical you might guess Colorado and solidified my cold dead hands. When I walked out of my apartment today. I saw on 73 and 73 street in Manhattan. A brand new Dodge Challenger I might not like dodges you -- like this city commandos but it's an American muscle car. But they're going to keep by the way and I said. And just doesn't fit in the north but it is beautiful available plug this unenviable."

" pulled a muscle car. Alleged drinks gasoline as -- electricity. Not any more about -- gauges in the darn thing is a shift and a gas pedal and -- that's all there isn't that. There's cars coming out."

" They'll but I totally believe that that I said that an American sports striking --"

" It was my second my first with a -- or Bonneville Bible really caught my guy was it's all about. We'll courses and the big cause you can't really that -- to go through your first of all accident."

" All right World Series you know with the Phillies and Yankee gas yesterday's Philadelphia -- when the series is 321 yankees were leading yeah Montana wrapped up. The choir mistakenly ran a three quarter page ad for Macy's. Check it out. Congratulating. The Philadelphia Phillies for winning their second consecutive build cities. Failing Macy's that said look if they win run this ad the next day and somebody made a mistake within trailing 31 in the series to run this said now people in Philly. Art she thought about this because bad luck it's bad karma -- to celebrate winning when you haven't won much less when you're down 31 so sure Macy's is really. Not very happy about this bad PR move now that you know in three quarter that's expensive -- by the way."

" What happened time and time again in New York Post is made mistakes like this for the right now before things that I know I know -- is there enough trouble as it is they couldn't sell -- letter to."

" In the end he's frozen Alaska papers I have a hard enough time selling ads they can't afford you know hammered yet angers some of their that are customers like I'm sure Macy's is as far as -- does. I was who -- again."

" Right we're going to go out to op on Skype levees will stay in real salt Broder founder and director of liquid capitalist out there in cyberspace he saw how -- Doing great thank you good seeking there's look at. Preacher it's gotta check."

" Outstanding united CIT. -- declare their bankruptcy over the weekend. Not a surprise to you have a getting a surprise to anybody out there and how does this impact. Manufactured in your mind in the clothing industry. And the distributors in the clothing industry retailers across the board the -- Dunkin' Donuts earlier. Just across the board what do you think the end game is there."

" Well I think that. CIA people by having the bankruptcy is really all you have a part of the story it's a prepackaged reorganization. And my understanding is that CIT is continually people whose support funding it's. To expect very quiet that is. The industry that with the capital operates -- so why don't expect that very -- it and you see I guess. Are -- important -- experience. Shortages of capital."

" that is really adds to your point this is this a quickie restructuring. They an an important that we do prepackaged bankruptcies is to get it done. Quick and -- Lisa that less people are interrupted -- companies are interrupted CIT though. Have got some legal hoops to go through they need the approval of the FDIC if they're going to start to use deposits out of -- top bank in order to get this thing up and running again and make it seamless. You think that's going to beat. You know a simple approval on the FDIC's part."

" Why I can't speak for the FDIC bet but I did note that as part of its prepackaged proposal. That -- yet he has the support. All the bits death toll -- At least -- significant ones and -- the investment community. So I expect that. Or regular -- at schools get there are people so small that the school the school funds to. Small and medium businesses that really do need those."

" You get in this entire market value would would there be enough do you think it's CIT completely disappeared. To -- the Bank of America's the world BMI mounds of the world the others could come and step in. And take the place of CIT and fill the void that would be left behind in this debate in factoring point eight to small business operations -- they do."

" Why -- I can really only that's because the factory -- and to. There's no question that CIT group to disappear. The age gap. In the division of equity. Services to schools. And be very helpful. Anybody there that certainly in the short period to step -- CIT is the -- won't factory. States. And that it would be difficult. She's the -- will question the."

" So what are your recommendations -- little businesses out there that rely on CIT for factoring burden lending for things like that. They and that -- there might be bumps in the road over the next couple months so this is ironed out what should they be doing should they be looking elsewhere for options right now."

" Well I would expect that existing CIT clients I get hurt or are being -- and I would I would think as in most other areas. Panic is -- you're gonna do anybody any good at these deputies. Or being funded we understand. The relationships. -- It's small. Small medium size businesses he basically two points that is. -- Facilities with -- the fact that this is that I would expect that they. Especially the small world who would best -- Local decision makers would be of -- to -- it. So really. Exclusively CIT call -- its work all their own small businesses who went to war decision makers won't put."

" Right and we've been seeing unfortunately there are small businesses are struggling a bit to get loans but I tell you what I thought we will be following this story for awhile this prepackaged bankruptcy although it's supposed to be quick will no doubt. He takes some time so thank you so much for sharing your thoughts with us. Thank you things all the goods sold out of founder and director of liquid capital."

" Talk a lot of the Apple iPhone and all of these applications our own path that is very important that you download the Fox Business that I -- But there are some other ones out there as well when you talk to somebody who has a great idea and putting it wanted to into effect right now for the real estate market if you're out there looking for a home."

" And now this actually could be one of the reasons I might buy and break down and by Exxon finally well I'm up by economists. I'm close one thing it. That."

" For the back to Fox Business -- have -- Chris Cotter. And Tracy Byrnes watching last is what we do it and the brakes in the very short breaks and really analyze them in much of any book business around and laugh. They have got to powers were throwing things around the studio if that's that's coming shuttle will start and next week on the we're talking about the Apple iPhone a lot. One thing how it's not selling a whole lot of in China and that would disappoint the fact that they've just -- that over the last couple days and for various reasons it that there's this fervor and you think. If you're wrapped around the block in Munich Germany in Tokyo Japan in Beijing -- wrapped around the city to get this we went --"

" How about this before this -- I didn't. This should've been what caught my eye today it's not about it should have been the fact that they're actually selling more. -- the black market then they are like we only because it's more expensive to get them legally than it is on the black market which. I don't know we're going to talk about one for the black market -- just another exciting new -- on the iPhone went -- your eyes and them. Quickly. As a space hotel opening 32 so if you're making vacation plans you could go to spends. My initial reaction is are you kidding me but then you go further and you read galactic sweet -- resort. Says it will cost four point four million dollars. Negroes were all doing well these days you know. Three -- this is what it includes three nights plus an eight week training course I yes. -- these stupid rich and you don't know what to do yourself and you probably as a kid wanted to go. This space this might be something to do with your four point four million I mean I could think of at least. I thousand other things that you can better deal with that for."

" That's what it in zero gravity fields don't really worked out so well see probably -- without the -- FaceBook where where Lance Bass and Richard Bronson and bowling going to say when they you know -- these multi gazillion dollar that's -- on the space maybe that's where Jim Morrison is right now. Meeting that's where helplessly as -- now maybe that's where we should go. 180 wow I'd like those that's. Going to be where the kids and I go for Christmas Jennifer Levine -- the threat -- record and partnerships that smarter agent she's an adult but at. I -- some -- this effort because I would be looking for a home soon. In you've developed an act that allows people essentially when you're driving or. The old school way of trying to find a house that you like his. Drive -- neighborhoods look for for sale sign you go out and you call the real liar and you you called a realtor you come home we have a stack of flyers and that's when you called realtor. You develop and happier iPhone essentially for any Smartphone that you can just. Punching a neighborhood and see all the homes in the area and all the real stage right."

" Exactly smarter agent invented an application that allows you to search all the homes for sale from -- touch of a button on yourself on -- it's not just the iPhone not even just Smartphone -- but I don't have to -- found that they -- on 95% of the cell -- out there as long as -- to have the data plan and we used GPS enabled devices that they don't have GPS -- not -- area they want to search they can also search -- address city zip -- community -- number. And just like that the consumer get that instant information are looking for from the -- they always have sent. So do you do you just. Compile all the listings or do you have to -- realtors have to get in touch with you to get their information on this product. Well we are national company so we have a national version of the application. But we don't so -- market smarter agent if -- agents and brokers that are giving out their branded version of the application which right now have. And you use every one and a half minutes the brokers and agents. And for the way it works is they become partners with brokers and agents across the United States between then and there vendors as a vendor with them and -- and the last and we take all the listings and the panel left Mobil for anything that allowed to be publicly to. -- multiple listing service properties are with us on the Catholic it's online your website right now so I would just. I have to download this on to my phone so I have to go on the web on my phone and download it and download it. Break to myself -- that's one way you can download at the other and easier entry point is via text code like if you text at 88 triple 78 right from your cell phone. The get a text message back with a link to download the application right here phone so we work with filters to provide them there on specific text code. Like -- and -- Florida if you Tex Watson to a triple 78 he'll download the Watson and branded version of the application. And be able to search all the properties that day service and their analysts regions it's that sounds."

" Like done the you have a hard time. Finding a common platform because you're dealing with all these different agents in any particular market right and it just sounds to me like. How do you do it okay well we can do it this way with you -- how to you do things -- you does does that make sense to you."

" I understand what you're saying that if something that -- smarter agent apart on what we do is we have created a platform that works. I'm consistently across all the devices and carriers -- make it possible for someone to download an application to their -- are the same way that they downloaded to their iPhone. The user experience is the same it just uses the functionality that's on the razor versus the functionality that's on the I have to be agent specific let's just say I'm looking in. Tallahassee I want to buy a home in Tallahassee do I get all the MLS listings for Tallahassee. That's what happens if you download the national version of the application in your searching in Tallahassee you'll be able to see. All the areas that we have access to -- molasses if you're working with a particular agents. You'd only be able to -- areas that they service as an agent her analyst rules and regulations you can only show properties that you act as a realtor for."

" Capital Florida and its college town lot of jobs probably open up those who -- there apartments -- now fun looking for a home though. It isn't a visual part of it is well on -- I think if I look on you're on my phone and I see all the different locations in terms of -- that's fine but. This is a beautiful street this street has cars on blocks on it you know from the south that's run from you see -- now and then this is beautiful. You know what this is next to a house that's you know these junk. Don't need to see that as much as anything."

" We'll definitely for the great thing about the application is -- the black. Think -- I think each littlest things we have -- A limited number of pictures so whatever the analyst provides we'll have -- Limited number pictures you can see inside the interior features exterior features there's an interactive map that you can use he may be on one street and there could be a house for sale matching her -- search criteria two streets over. Up at -- while applications like that all of the school at it until the school districts that you're searching and yes you can get in touch with the realtor right there from your phone essentially right but that's the great thing -- the branded application that realtors can give out to their clients and potential clients it's their -- their logo is their colors. And when the consumer finds the property their interest and they simply hit call deceit within the application and it puts the call right in touch with a -- they're working for the -- quickly make money. We are making month. Already Jamaican money I don't know and that they had personality is Henry get it given the website that they -- get on this stuff and I can visit www. Smarter agent dot com there's information on there that -- have block -- download or we can and turn yourself in number and send it to yourself."

" Jennifer Levine out of strategic partnerships at smarter agent check it out there in the market the buyouts. Tracy might be he's getting a Smartphone first in a car for the level heat before the younger. Yeah next week. Not as a candidate Obama. It's good. We'll see let everybody thanks for watching today -- market is down only 34 points. So as is almost always the case it's in better shape now the show is over that was when we started. Now that showed how you can go well. Once again do it."