Gold: Is it Really a Safe Haven?

" But the fact of the dot com I'm the one."

" I know you Yankee fan we never leave that be an I think you just have to be -- you mean you gotta be you have to be not a whole. No I have to be anything."

" They -- that because the hometowns."

" there than that's on -- and even that fans have to be somewhat happy that we won this -- the -- I have to be happy at all they can be miserable that I have been met and admit you Phillies -- the Yankees were going to --"

" Q you won't. Why -- the decision hasn't."

" Because they hate the Yankees they want -- it isn't it with -- and 162. -- Yankee -- said he was it it's a waste I don't negative emotions and I yankees satellite some of the players."

" The organization from. Well that's something else but in general -- utterly hate the Yankees but not a fan of that I had to be excited that they won the World Series. But he cited my team won the Texas Rangers the Rangers are perfect because they're always in second place they never. And I told him always of football and hockey and because by the time the mid September rolls around done for baseball that's that if."

" Larry you actually getting your energy level like -- and then you got excited and we would want you to do that what do you think about. You singing happy about the whole town went -- I could care less of the Yankees will be at the end of the USS New Yorker here it's much more excited about that now. More excited -- cool as well the ship was made from steel from the World Trade Center I love that I think that's the cool."

" I -- much more excited about that I'm much more upset about the fact about the 154 points right now I'm more excited over -- 154 points today and I am about the Yankees when that was. I'm not getting what I don't care I do not. Care I care about as much as -- Nebraska case I promise you get a lot more about what the Huskers are doing this weekend. This is about with the Yankees did last night at McRae is here do you care -- hindsight I. And so full of it right the camel there. I was just -- about the start college basketball CIO I know here in the world economy and I do I love the Yankees in fact I going back when I was kid and there was a it would never -- hometown teams did get to what's the Braves in the sort of had somewhat of an affinity for them even as they were terrible back and then that. Ignored data North Carolina by the name of Jim Catfish Hunter on the mound for the Yankees and -- cat and my dad was a fan so. I grew up -- the yanks I cat which made the eighties and early ninety's painful it fine the Braves in the Yankees might even in the ninety's and this decade nuts about you know it's not. About the the -- is. Much like the Red Sox did for so many years. And the cubs do now the -- revel in the fact that they don't win I mean every what would they talk about the Nazis if they want when the Red Sox -- finally back in 2004 they said. Fonality -- can't revel in misery right met fans actually sort of it almost I'm not gonna say they enjoy it but it gives them. You know added bones to that offseason misery right now this tunnel something else to talk to doctor Freud about they did in this room. And it's almost like they they did it sadistic it's almost -- Mr. ball. They just aren't just. -- and prayers tomorrow by the way. And it is very core I -- last time should be a lot of thought I could have heroes you did mention the the USS New York is here dots so I don't a little bit later on the show let's sort of it's an economic data though. August productivity numbers VS and jobless numbers this morning yes and that the trend looks better I mean it's still not a great numbering 512000. People filing for -- implement a huge number out there were fewer than expected so we're we are seeing the trend coming down -- obviously economists traders and investors. Let's face it every American would love to see that number lower. The prior which provides live up the four week moving average committed continuing claims going down but the really the number that doesn't get talked about the much as the extended benefits and there it's up over a 100000. This -- there's still a lot of people update and you have. Five and a quarter million. Which is -- and another number living on the continuing claims he studies of people extended benefits congress. Looking to extend benefits even furthers that just tells you that and people are seeing jobs coming back any -- soon and we have a big jobs number tomorrow everyone's really looking that they're thinking you know again transmitting -- takes a long time we've talked about on the show how it's expected to take even longer to see the jobs combatant did after the last recession right you know I was gonna say it's -- the net V shaped recession what I feel like with the some numbers a while back in six months after the hide in the initial jobless claims. You really get a dramatic drop off an initial jobless claims -- the V right there you know start hiring right way to bring that they they cut too much Palestine to produce and now -- hire. And we're not getting announced more like that check mart if -- ends the day right it is still going down but not. Seeing it does not."

" The big drop -- nobody seeing need to."

" How much knowledge while people you had -- can still stuck blood out of them and still get them to work -- which is what we're seeing in product -- you just summed up the productivity efforts right there I mean people cut to the vote more quickly this time around we've seen in past recessions and that's part of it in their finding that. -- output per hour worked is up that we nine point 5% the biggest jump in six years in the third course of people are doing more with less. And getting by because they're not seeing the demand to have to boost. Output even higher which means it would have to bring back in more employees and our our expand."

" In some case I want -- wants to hear this we -- seriously taking medicine now and we will come out of this leaner and meaner and much more productive clearly based what's happening."

" That's that's for sure and in you looking within this you know like what look at. Hours worked down 5% of people not working as long people into watching that. Tomorrow that number -- it tonight -- record low 33 hours a week and mean you know it's worse than France right there and cried which is another story -- And the like you get your higher up -- cotton have gone hourly compensation knows that you have to look at -- and hourly compensation was up three point 8% you back out inflation it's only at two tenths of a percent but. It's going in the right direction minutes of yeah it's a meager gain but it's still a gain do you want to see gains there US the hours worked rising. Particularly tomorrow when you look at that. Important. I'm Robert good to see you guys Robert Craig he's up to date on -- what's going next and act exactly many I didn't Randolph thanks gone celebrate. I hate going to go to the -- com know they'll be working."

" The robber William Roberts did not mean he's you know I don't."

" that are lawyers Robert you're gonna go to the parade enjoyed Kara and loads of time and time again."

" It's going to be fun you gotta go and you know with having fun again it is claimed then. Now -- Google's headquarters live I Italian I don't know I don't I can live."

" Yeah there's got to ask you this question there's ice the market Coca-Cola and we had. What a lot of people play -- the world's greatest cafeteria there any any selection you can possibly have a want I'm hearing that I've got something to rival that."

" Oh yes we're here at the Googleplex in the cafeteria you can feel these people showing up for breakfast let me rival what you have Coca-Cola. And that would be. Free Kenya rival -- and I think here is -- if they can eat whatever they want and they can. Yet whatever they want and offering to show your group of bats in their begin their very healthy but this just one -- nineteen cafeterias. And cafes all around Google and everyone's excited here to -- fox business and got unprecedented access they really haven't. But people women running around this area. In the past this is the first time but let me bring you back around this -- Peterson turnaround come follow me to make your own waffles Tracy. Excellent. Here if somebody doing that right now and -- at."

" Making -- laugh -- yeah. I'll let you can't we can't work."

" Now Chris wants lucky charms right here on the left arms for friends of I knew how to right now let -- help but let's cafes in. And the lifestyle here let's walk back out again this is something you guys that is just one of many things that they do you that they really want to make. Be a very positive atmosphere. Personally I think it's because they want people to stay here all the time worker that and they do so by offering all kinds of things that they keep them healthy. Over here they have the -- Who have their own vegetable garden check this out my goodness they make the fresh vegetables here I now hello. And they've they've got all of their vegetables -- all of the growing connection. And then what the -- do is they cut their herbs and their spices in their vegetables. And then they make the lunches and breakfasts and dinners with a keeping people healthy here you guys and all very freshen. Silicon Valley I know I now wouldn't you just love this I've been hearing you know in New York -- running around desperately running them down sixth avenue to get whatever we can have a -- our."

" well Liz yeah its offer shouldn't have veterans who might question what would have been done in terms and studies I guess obviously they've done plenty. That would that would help them this is very effective -- not only retention but also in making our employees more efficient while they're here."

" There's so much competition in Silicon Valley for the top minds and so of course they want people to feel that. This is the best place to work so employee retention you hit it right on the button very important. Something else they do they've got five doctors on staff they're very big on looking at health care in keeping people healthy. And it's all free so you can go to any one of the doctors and they'll probably do you know. Not going to do thoracic surgery on you but they'll definitely. Make sure you know that they are immunized and people get the flu clarity asked if they have the H1N1 virus Google's no different from the rest of us they don't have it here yet. But they are waiting for -- that things like that but that gets to be kind of a more creative atmosphere where you can bring your pets to work they encouraged that. And around here in the area you see people riding to work and bicycles you know and they also have free bikes on campus. Because it's such a huge sprawling campus. You can grab a bite. And then zip over to another building if you need to. And but that's all free chill but the question about a hundred shuttles. Are afraid that pick people up from work. All the way from Santa Cruz. Back up to Silicon Valley so I mean this is just one of these places where they want to make it as easy and comfortable as possible. For you to work here a social thing over here repeat what I wanted to show you this pertains to bringing your pets to work. I noticed this and I thought what if this thing flapping around."

" One doggie bags and I've got about your look -- look at -- As a lot of life walking through and it's not gorgeous but who has been doing this much since its inception they have been on the forefront of taking care of their employees and I remember -- this years ago. Google was the number one with direct impact then it was just a bad food -- tables. I mean now they clearly gotten so much bigger and better but. You gotta believe I mean you know some of the notes we got from you they -- they let you take tango and belly dancing lessons as well and -- you know yeah I. Yeah he got a good way better here than in my house."

" I every -- they've got all kinds of ethnic dancing classes that you can take everything for free. But they also get people excited about working here as part of teams dodge ball lessons for example. I -- to tell you -- the amenities that I was most fascinated by. Cotter they have heated toilet seats."

" Okay now group."

" It's the you know how I play out on a -- on the -- so I would enjoy that is greatly Liz. --"

" I don't have that in out."

" That's wonderful thanks --"

" We want sitter and in the bathroom I just want to say one thing yeah you reading material in the bathrooms -- the -- isn't enough money. How to write accessible fast and maintain animal HTML. --"

" A lot yet that would be perfect and he's brilliant and thank goodness -- the great -- de Brito known. Banks -- made an -- it. -- view California scene reporting from the bathroom during the that would be going too far I crisis hit I mean that you realize that's really."

" Almost some -- the markets so Ross said he is here principled Douglas -- and associates and yet give us his take on what's happening right now and -- how are dead the decision. Com all right now we -- it's funny this week. Vowed Tuesday to get all this emanate activity with Warren Buffett and we end up down on the day yesterday. -- 150 points up -- would have any negative. News did word from the Fed was what we expected and we lost all that just about about the day. I -- a hard time reading these markets."

" Well I think short term when you're you're. You did the dollar being the way it is you go on a macro traders playing the dollar playing other hard currencies and then also playing assets so you see a lot of index fund movement which is causing the market to really move I think. The earnings season that we're seeing was pretty much built in -- new warnings were going to be better that the key was that morning when a disappointment I think we're going to really bad selves so. We've come to a point where going forward. You have to look specifically as to where you want to be in the market what we've had the last six months is just coming back to some type of normalcy. Because after financial Armageddon and now you've come to okay companies are still viable companies that we -- price to go out of business are no longer going out of business but the next key is. How -- these companies just like how we good GDP in the next couple years -- going to be one to 2% if you're invested in companies which ones you want to be in. And the ones that today on the earnings calls last week when a reporter talking about growth in the opportunity not just cutting costs but the ones have been rewarded real quick though. He's just mentioned GDP of one to 2% for the next two years that's what we would expect given -- given what you've seen. In terms of the liquidity that we have. It's it's so easy to get money but it's not. They in the sense that if you want to borrow companies that don't have good credit can't do it -- can individuals. And those that used to borrow in the past just another capability or the ability to do it as employment stays. There at unemployment at 10% and you guys are talking about it before. One of the things you really have to look at this to see where is that growth going to come from and unfortunately it's until you know we pay off our -- we're not going to have a."

" I think one to 2% makes perfect sense I think that's -- GDP should have a in this -- quarter but it was camouflaged by cash for -- in the first time homebuyers credit to you pull that out and we probably would have been at that exact number absolutely talk about the fact that. If this market price for each of robust recovery or is it just gonna be slow and steady because. Yeah unemployment probably get 10% right you have no exit strategy from the government yet whatsoever and yet we saw that stimulus money that they are supposedly going to spend next year."

" Right so you've gone that's the way are you going to actually see the market move and it's going to be specific within the market it's not going to be the index -- because there's going to be pretty knicks game. You're gonna look -- GDP returns going for the next couple years. Where it's going to be used look at companies that have the upturn -- not just to grow inside in the US but outside. Companies that are going to sell their products. Internationally but we like the US companies that you know you said you were -- cola you know companies like that. That half and you look at the top line growth even if you get 45% top line growth you're gonna get six cumbersome bottom line with a three point 0% dividend -- And that's the that's the side of the consumer staple that's the necessity needs of people and abide -- Colgate to coax European -- you know -- things like that. But if you if you want to play is stopped strategy on that we also want to come up companies that are coming out of this they grow top line that. That have a product a product lines that can really grow as opposed to just being you know. GDP -- growth. We see more money coming off the sidelines. -- getting into equities and that is that kind of driving us here over the last six months well fortunately unfortunately you're seeing money move in and we see this from our investors think I don't want to -- point 2% sitting in -- yet. And so you're -- huge amount of flow into bonds and actually the right time to buy bonds was really in March through the last you know couple months now anymore but because you see that. All of a sudden it's run you know rising tides lifting all boats and I think one of the things to fear is that as soon as the markets start discounting rates going up. And remember the -- not -- control long term rates it can't control on from race. Sick you're going to see money and come out especially for those people and pension funds retired funds. They're going to say I need more dividends -- needed and that that's that's the one side that you have to watch -- but. All this is priced into the market one of the things that was differ is different now versus what happened in October November. Nobody expected that to happen right we knew about commercial real estate we know about the ability of the consumer not to -- it's what we don't know. And how fast certain things can happen but if you have an orderly pattern of dollar going down rates going up I think you're okay."

" Before we go to break what's left and that we don't know are we know. Financials the finances of the banks are they still a big enigma by I think you still have some huge you look at the Bank of America as a Wells Fargo in there and and how much of the real estate has really been renowned but again I think that's kind of -- in. People they're not getting of the book value premiums that they were in the past. What is being priced in is god forbid we have some other financial institution or some other from. Blow up in a way that we can expect IE fraud or something or you know something happens overseas. No that's been built in because because it's such an unknown it is it is such an unknown but."

" You know I think citizen not a place that I don't know what to do with -- almost ignore right."

" And and you ignore it and then you get the short term fluctuations in no way where people are just looking for data points all the time and and you can you can. Drive yourself crazy just looking at data dating."

" For comment today there are checking principal at Douglas C lane and associates and I got us former yeah grad. Yes we -- moment double gold in them that -- yanks yeah I am glad you really -- home."

" My -- went talk about precious metals gold incumbent."

" So -- unbeatable when."

" Just let everybody knows a press conference going on right now involving the -- angry that the insider trading case which might -- that right now on now Fox Business. Life that is stuck on scene down there -- right there in the corner so that's what that is when you see that right now -- is a little later on in the show but that's the --"

" Adam Shapiro about love and his cover in this thing had top to bottom sound very good on and he will keep us posted all day long on that."

" Dan Dan -- joins us right now manager of the US -- precious metals and minerals fun to talk about gold Dan are you gold -- not right now. I don't know that gold we've been positive on them at all -- yearly salary you know clips that -- made last march. I we still are constructive on it I don't know medical bug. There's many. Wildly bullish people out there I don't wouldn't put us in that camp. Are you afraid when you hear or not afraid that you you'll gold 2000 announces that kind of make it stick a little bit when you hear that."

" Sticker price below harsh to some people but -- does seem like there's a lot of head winds that would come into gold 2000. It's via large increase in the scrap supply. And physical ran up that high side just don't see that you had. The do you face me head winds I don't know if you -- get there and then near term you may get their longer term. And people justification. Of that was -- high inflation adjusted distant hold water for me."

" And did -- behind this run up I mean we're look -- it gold 2000 recent shirts by the like gold 2000. She's got you know black people blaming India India comes in 200 trillion. Gold. -- from the -- that is that the reason that future is expected actually China to be that big buyer turns out to the India is it India -- that or do we blame the dollar do we blame the deficit I mean. What's the rationale behind this is it just -- that the market is you know as we were just talking about flat line."

" Well big great thing about gold -- a lot of choices to to pick on if you wanted to choose which one is driving the price higher. About a month ago we saw a new catalyst come and what's broken through via. 1030 which was the -- from -- away. Was Australian bank raised our rates a quarter. And that really put some pressure on the dollars people start worrying about other central banks raising rates and -- and hurting a dollar that pushed history that 1030. I know a little bit higher from there then two days ago as you mentioned the Indian buying the 200 tons from -- I am half. That was cat the second catalyst to pushes higher and now we're trying to challenge the 1100 mark. And they're raising that was critical is as you said most people expected China to buy nickel -- and it had India can then as another buyer. That just -- creates demand in the market also I think it helped to reinforce people's feelings -- central banks are going back to buying gold. When gold headed slow Central Bank spent a lot of time selling gold. And added pressure to back to live in 200 several years ago. Now that the central banks are back in a market that puts a positive fortunate you take it from there they need and that worries about the dollar worries about deficits. Currency debasement. All the end quantitative easy easing that's taking place there there's a lot of confluence is out there. That can impact the gold price going Ford -- other reasons were constructive on it. Okay so about it then as far as an investment strategy right now you like -- metal itself with a metals any precious metal you like the miners. We we invest prime principally in the and the miners themselves are fine owns only mining stats. People can't go through ways of looking gold weakened by the go directly. Even by the gold ATF or even by the mining stocks that benefit the mining stocks is with the operating leverage. You can get it you know two to three times movie and it in the gold price will -- hired as Luna gold price 1%. -- two to 3% typically in the mining stocks. Now we haven't seen that last cup -- Week Jackson over the last six weeks that's what the temple make your -- CXG it better leverage in the mining -- especially for the upside. And push needed unit on the downside as well."

" Dig into the other -- as well in everyone's I was asking about silver platinum. You know platinum used very heavily in the auto industry of course auto industry suffering right now -- do you stay away from platinum because of that. Copper of course used in a myriad of things."

" Although housing and housing is getting crashed."

" It placed on the precious metals copper is a base metal. We look principally at the precious metals which includes a platinum group metals and silver. Platinum does have a large exposure on to the auto market because the auto catalyst. That market also is interesting because it's kind of always got when there's only if you. Companies that control the platinum market so it has a very nice pricing structure when the markets working. Which you do have to worry about the auto sales in those have bottomed out to going forward the outlook for platinum should be improving. On the other side silver silver is a much higher industrial metal it's mind a lot of base metal mines -- has looked poly metallic. Component must whose minds and Avalon last nickel. So a lot of times there's a lot of other. Elements that -- consumer prices other than just it being a precious metals itself. So it doesn't turn out to be quite as good proxy a lot of people argued to poor man's goal but because of those influence it doesn't turn out quite that way. Currently we have about 7% of our fund and platinum and about 7% and Silverstein --"

" The poor man's colds and -- summer. Though not silver mean that it looks so I am really so that's helped or I am back at -- And the thinking of for the -- thanks Stanley appreciated. Thank you Dan -- and -- cities on with the USA precious metal and minerals fun yes like nickel what I'm wearing."

" You know if Mordecai married platinum would be up but because of weddings the wars in line for disaster around and then -- I I."

" I just ads saying there's a core -- speaking of disasters. Will call my died today -- coming with that you know what. On contracts in this country."

" Basically I'm with the paper they're written on Halloween glad that I definitely blogger of bush illegal in the Blogosphere right now the wires -- Verizon Wireless is going to double their early termination -- You go to Verizon you buy a fall in the Blackberry and you pay a lot less money forty excited three year deal we all know this because Verizon has the -- rim. For that phone they got paid more than what you're paying Verizon for that phone and that the subsidize that. I'll buy you making sure you paid and every month for two years well nearly termination he did a double its like 350 dollars at first -- every ten months it throughout every month the drops down ten dollars. Here's the point. Don't sign a two year contract unless you plan on living up to that two year contracts rights."

" There."

" I think he has hit with that -- I got caught with Verizon what I moved from one part of town to another and Verizon didn't travel with me and I had to fight -- and now we get out of that you know he didn't travel didn't work it worked in one part of town and then when I moved I got no service. So where you think I have lived in like the -- isn't that the hopeful but isn't that the port of looking at the man."

" I didn't because Verizon on the map that's not going after that."

" We'll sign when your contract I don't why it was I didn't think I was going to move you."

" Will you buy a house and you don't think you're gonna move on the -- you've got to move on is going to leave it you take it. I get another house of -- add up and if you'd like me and my ugly divorce I want to I don't I don't know how I. Shell out into the -- of on the -- activity right now. That would if they break eminent thought that the ones we'll break say this intimacy mean surely -- the link."

" The red back."

" That Latin. Everyday I can't just and I can get it down though that great cats you can watch us on your iPod end it. Wouldn't cut it to -- quite gotten way out there. Speaking spot foxbusiness.com. There's some great stories on the site today actually and I found it very funny when what did you find."

" I would not nearly as funny and we were actually -- it a little bit the little while ago press conference going on right now here in lower Manhattan at the southern district court. Fourteen additional people -- charges stallion -- insider trading. An investigation. Made -- professionals of the law firm above ropes and grade and shot and shot -- a group so. It's really expanding right now in in actually. You know. Many people are former employees at the shot filled group but the thing about it is is on now we're talking about lawyers being involved with 20/20 million dollar insider trading. Situation and we know about rise rot are hot damn are rotten that I get that right are trapped and that's tough. Mom blatantly in Dallas expanding considerably in the -- this is -- it's going to get in the clients. Attorney for -- lineage and all that stuff so. It's going to take some turns going to be pretty interest in this the other places of."

" That's -- it it's scary when you hear that the treasurer at one company is giving insider -- information to another so that someone could make trades up what's going on. I mean that's just bad."

" Bad form any woman who gets pregnant knows. The body becomes this amorphous blob that you don't really know what to do with them today and just for -- just for a morning and this is this me -- reason why. I'm not going to have to worry about that but go ahead -- would have -- morning every -- because you gotta be patient because it happened I know -- your future whoever's and I understand I tell you myself pregnant woman hits these periods where she doesn't -- energy inputs that pregnant clothes look ridiculous then and so this woman god love her pregnant -- at the time came up with. Band to help your pants stay on. I know that sounds really goofy but it's actually. It's I wish I had had this. Because you end up wearing sweats for a period of time. When you're in that in between and you -- just lobbing -- of people look at it like -- at the gym every day yet everyday she gets bigger and bigger the -- build pants there it's a big elastic band around your stomach to -- it's almost like you know --"

" The little paper clip thing convincing others like sweats while the band is like a big belt cities like made it fashionable let me ask you this when you're pregnant. -- didn't bother you that people would come up just bringing in people with -- and on the stomach because I was thinking that before it but."

" You can't touch it you can just touch a stranger can have their pregnant or not you kids go to somebody put."

" An -- you know what's very strange because it is strict it it was weird to me at first now I'm a mother acting like have a right to tempt everyone's -- really yeah. Likely the Buddha belly just like given all the want to hear the heartbeat don't want to make sure everything's okay -- my old little check with the break I -- another -- is making twenty million dollars in revenue is expected to six years after she wants that's in the it's right there -- and that's what. --"

" Finding that niche in going with -- for the people make an enemy in this inflatable seat belt afford today did you see that that's against you Simmons Megan and instead of that when heated seats at Google. That at home yeah. You don't and it's cold winters up in northeast Peter Barnes joins us right now from DC."

" And Peter armed -- we've heard an awful lot about Fannie Mae and Freddie Mac and about although the bail -- there do we have a no one on the horizon here. Yeah the Federal Housing Administration to be next on the list but it's not sure if it's you know. Around the corner or few years down the road. But. What's going on here is why we're talking about this today as we have a little bit of kind of in the beltway intrigue about this because the FHA. As an annual report. Audit that it releases every year. And yesterday it had scheduled a press conference to release that report. And then. At the last minute the night before last cancel. This press conference we've got of course everybody talking. About whether or not this report would show the FHA and a heck of a lot more trouble then one. FHA critic has has testified to congress about. Ed Pinto is a former chief credit officer for the a four Fannie Mae. And he told congress back in October that based on his analysis and his metrics. That it. That FHA was losing. Just a ton of money you know the -- it. If it only requires. About 3% down for mortgages and as a result. You know a lot of a lot -- mortgages have gone bad in this financial crisis in this recession. It's delinquencies and increase its foreclosures have increased and as a result he's predict projecting. That -- that the FHA will eventually need a bailout of over fifty billion dollars. And so than some of the cancellation of this press conference yesterday has got people. Thinking that. Could be worse now is that. The FHA says that it that it's it's just. Asking an outside actuary that was running some of the numbers. Says that some of those numbers in the report might have been inaccurate so it asked the actuary to go back. And scrub them again and and that's what's caused the delay yeah I'm sure there enacted agreements face that we haven't seen an accurate number to come out of Washington years. Bob what is DC event maybe maybe this one's still accurate -- admitted that the problem."

" I -- that is the problem now you say eventually will need to bail out of the most people out there thinking should bail outs are behind us or at least we're working our way through the bailout is just -- we talking about. Months to years down the road before somebody says guess what guys we look at that slush fund and take fifty billion dollars that."

" Yeah well Ed pent up thanks to this could happen in two to three years it may not be imminent it up and -- of course fair and balanced as we always are the FHA says for its part that it has thirty billion dollars in cash. Ready to handle unexpected losses additional losses here it's the cracking down on fraud which has been a big problem at the FHA it's also improving its lending standards. It's underwriting standards to make sure that that writes better loans. And it says that its growth in revenues will help to mitigate the situation improve its financial. Its financial position. -- the FHA because life you know regular banks and mortgage lending companies have pat our our our behalf. -- pulled the end here they're not lending as much the FHA has really stepped up a lot of people had to turn to the FHA to get who. Who loans because of it because it guarantees those loans against -- against default. It now has more than 25%. Of the market. For more for mortgages and so. It's provided a critical role in helping to stabilize. The the housing market a lot of people out there. Would not have gotten a mortgage had it not been for the FHA so it it's an important agency but it's in trouble."

" and that is exactly my point they would not have got a -- maybe they shouldn't have gotten a mortgage and here we are with this whole big circular mess all over again. I'm surprised they could not get this its seems so logical you know stepped out of the way and let the markets just work themselves through this."

" Well you know and then let's not a policy level. Tracy you're usually you know listen you're spot on have a very good point. But we're talking politics here okay now we know that at at the politics -- I -- that and how it. Politicians want the FHA to continue to ensure these mortgages to help their constituents. Get that get loans and so so it's caught like Fannie and Freddie -- its exact same situation all over again these are. Entities that get that have political influence are influenced by politicians who want them to. Do certain things and of course a lot of folks out there say hey we have to do more to help the housing market because we don't get a recovery in housing we're not going to get an economic recovery so. You know. Pick your poison yeah exactly thanks Peter."

" Cuba thanks thanks for covering this stuff infuriates me at all why doesn't the it appears so controlled I would be look at countdown."

" So under control before it's the same thing else I don't know what the -- soaring people getting the contracts that they can't afford to stay and that's buying a house that you cannot afford it's the same exact story just. They're on different levels but you know. People living of the above and beyond their means and thinking that it. It's not only expected they're entitled to do that they're entitled to a cellphone which ever one they want -- I'm entitled to entitled to bigger better house."

" Family or not I understand I understand at the same time -- let. Third to curb wolf sometimes you don't know what to do so many of the -- living."

" Fortunate that that happens you eat where Americans -- we have so much ingenuity you worked your way through that figure out a way to survive it despite the you don't get bailed out. --"

" On I had to be the grim reaper here and disappoint everyone of our viewers that sort of sinister was going to just before the break and she's not yet think. Back at. The -- Smith isn't going to join us now -- was."

" You off about eighty stats and the kind of did that yesterday with -- that torment that I made fun of I didn't mean to -- stats were dead on right and openness and the -- like you by the way that's as martyrs Einstein annually is it up but it was put it on somebody and they're attacking. Comparing yankees that's the market."

" I mean not to won't let me suspend my entire day perusing stats baseball stats football yeah."

" Yeah it's it's a consensus of the market and create -- anything and everything that's what I did but what do you say yes today. Yesterday's win means the market will be up high."

" 10% but if they would laws that would amendment up 13% so all -- Yankee fans on Wall Street celebrating that we've just lost 3% in your portfolio -- here. Same thing fox sports and government hapless Boston they would have been -- the management says it it it is for several stocks today though was active movers and shakers and I don't. I think -- points."

" Yet we have a bunch of big losers today and CBS being one of them you know became -- better than expected earnings but the reported that some they got some big client losses in -- pharmaceutical benefits business. And that's scary gong -- you aren't signed on and mark so the stock was down 22% earlier whole foods as well down fiscal fourth quarter earnings disordered. Revenue up people who are still shop -- so much for the CEOs editorial on health care reform right I gave it to boycott the joint but unfortunately they did not give agree forecast --"

" That's the kiss of death right now and don't -- last quarter CBS earnings expectations last quarter great yeah you're over your comps were terrible anyways what are you going to do next what."

" As I was better just to set."

" Well yeah we talked about this yesterday I'll have to I don't have to be honest -- was at some point that -- had to pay the piper you know you're gonna get to the end of a quarter -- of the following quarter you have to really disappoint people -- disappointed American Eagle -- the teens are much older than terrible numbers that it. His store for October all the same stores even Aeropostale was not nearly as good as we thought there are going to be maybe just flying so highly of."

" Yeah I don't think I did I drink and team of pickles so -- I -- who's known. But welcome not so bad but yet the little peanuts like mind children's place up. That's because suckers like me -- buy anything for their kids Bellini he's -- in the teens and teens actually had to go spend apparently they're not doing anymore but children's place. Smaller than expected drop in same store sales it was less bad so they nevertheless and they did okay so that stock is up but American Eagle Outfitters. Down big winner today actually when he bigger movers today. Is IMS health is a health care Data Co. And they've agreed to be acquired by private equity firms so they are going take themselves private four point two billion dollars in cash one billion dollar debt assumption. As part that -- socks on fire but obviously will be for long because they're going to I that you missed that boat you're not making graduating -- rock god did you we got today not okay."

" you speaking of boats how awesome that's right there the USS New Yorkers dots here in the city. What an absolute gorgeous ship this is it's been in town now for a few days got here on Monday they've got the a ceremony on Saturday. -- and that we are very proud to be joined right now by else lieutenant Melissa proud. From that ship welcome to show you that ship is gorgeous stunning and really is confident. -- now you've got the ceremony on Saturday you will what we see in terms of bug dignitaries and people here -- that."

" And there's a lot of visitors and guests in India attending the event. The list is long to launch of its anti excellent."

" We -- former mayor Giuliani there this morning with FOX & Friends at FOX & Friends who live there this morning our sister news sister channel had their show there. The governor was there there's so much that you know between the Yankees winning sorry and this independent -- encountered so much New York pride. This is a billion dollar ship that was created with the steal from the world trade sweetener that is correct is very cool yeah did you request to be on because my understanding is a lot of people have requested especially people from my area. Requested to be on the ship incident --"

" I'm really from -- Okay though when the orders came up I think this opportunity mean just to to charge and."

" And a lot of people did write this I something like thirteen yeah. People are from the New York area is meant --"

" Really cool with tempo what is the the purpose of the ship does this. Transport ship it it carries -- since aviation okay -- takes the navy marine corps team."

" Across whoever needs to -- globally."

" And to fatten."

" But lose that power shorts half of the commission on Saturday but it vocal and active service for quite some time penalties for training purposes right train decrees being trained. To make sure the mission is done correctly so."

" What's interesting I think is that this is scheduled to be built before 9/11. So in theory should have been built without the seal from the World Trade Center tonight and Sunday rain date we figured it plans and everything in order to incorporate that into the boat."

" Right that was the slammer. Governor governor Pataki who I initiated that effort."

" Let's shift going to be remaining years thru Veteran's Day correct here in the order to people."

" You know board the ship and tore it or did they just have to watch from from a distance at the dock journal of public visiting is you know it is occurring www. USS and wine dot org. Provides all the information in regards to -- times and stuff but it's it's a great ship and you know people. No it's not just the -- and -- the New York it's also you know in the nation is moving ahead from nine elevenths."

" Here in town near -- I don't stomping ground when he did you hear."

" Well I was at the Yankees game last night thanks very here."

" handed -- today show you on the Jumbotron on TV because -- was Indiana I think -- visit -- I've seen on TV so. It's it's great how long -- been in ten years so ten years of peso -- did you notice a difference. Bomb in the attitude of people towards servicemen and women. After 9/11 in the aftermath."

" I think it's always been the same. You know being from New York you know where. A melting pot of sort of that's the navy is so really chilly I really didn't see much of a difference and I joined right before 9/11 so. And New York always welcomes the military in married based. Norfolk Virginia so you are home firm nice little lungs and yes you get back often. I tried to unmolested as it was in March so it sees fit family and friends country -- one giant."

" I'm glad you got to the games and it brings all play together thank you for certain think you can look at crowd from the USS New York right got to get out and saved for the commissioning ceremony on Saturday that is like I said. Much more honored that lieutenant -- here than it would have been had. -- being here. Okay. Honest I think that's the honest to god truth -- New York cry all night right now we're going to take a break. You know when -- Yankee fan -- not stick with us I'm not got to the scene -- the that a lot more to talk about seeing you assess the right and I think if -- and --"

" I might do it kind of bill."

" This thicket. Is collapsing on the east."

" First -- business phone like yeah. Kerry is serious presidency of SB council that's the a small business and entrepreneurship council didn't seem. -- to be here as always you know thought okay now we have been talking a lot about all the not so much in the last couple of days about the health care announcements we have been. But obviously small businesses going to affect everybody wants a small business in a profound way. Looking at the bills right now and Allison sent it. Is there anything that you view is a positive right now for small business and we're talking about well I."

" I I do have to say that we're we're we're really concerned about those bills just in terms. The primary reason for our health care reform is that from our perspective we thought it was to lower costs -- own business owners. And we don't see either of these bills lowering costs for small business owners. The house bill we're extremely concerned. That there are no mechanisms in place to lower costs for small business owners in fact. Some of the financing will be on the backs of small business both in terms of the surtax. Of course is an employer mandate -- pay or play mandate on small business owners. Looking even the public option the CBO's. You know said that the cost of the public option plan is is more than what businesses can find him attractive market place show. Right now it doesn't look good from the small business and Republicans put out a plan as well now what do you think of back and I mean it it does that make any difference you think it has some of the components that we really like in terms of not being able to. Buy health insurance and nationwide. Basis. You pulling for small business owners in fact the CBO. Just came out with a report that said that you'd like he's sixteen. That the Republican plan would actually lower costs for small business owners and small group market. By seven to 10% felt. We're getting there I mean that is what small business owners want affordability at lower costs and and a choice of a more plants in the marketplace."

" Why does the presidency to be waving the small business flagged it but we seem to be going on different tracks here we hear that all the time. And he's at rallies and people are cheering and get the same time we hear from the CBO we hear from you -- from so many small business owners that. This is not going to work is really going to hurt snack I."

" Yeah just because the president says something doesn't mean it's it's that way look at we we want to support the president we want economic recovery -- small business owners there are going to be at the forefront. This recovery both in terms of creating jobs in terms of innovation on the economic activity and that that they'll be responsible for for getting us out of this economy. But yes I mean he's he's wrapped himself in the small business plan he's had a bench at the White House is small business owners. But yet the policies that he's pushing that he's supporting he's endorsing. That this for example the house health care bill. Will be very harmful for small business owners so there there is definitely a disconnect in terms of what he says -- four versus the policies. That he's -- well."

" We're seeing with the loans that -- he's been saying all along trying to loosen up well. Lending for small businesses in all the small businesses are saying is we can't get loans you know show me the money where is it. And yet all we hear is that. That's you know something they're pushing through so I think these small business owners are really kind of just -- it done with the top right."

" Right and I and and and in fact it in these policies -- that he's supporting you're pushing against themselves on the one hand. He's trying to push out more SBA loans and and -- you -- economy gets better lending is not going to get better so we have to we have to get the fundamentals right first. But then the tax increases in the house so for example the five point 4% surtax. On entrepreneurs. And smaller enterprise and you know that make 500000 or one million dollar from -- and that's the sweet spot we feel in our economy dose of the businesses that we need to be encouraging. Those are the ones that need this capital and that the government is going to be taking from Canada fund health and what."

" percentage that you that's the council uses as the number of jobs. About that members clubs -- employee number of people in this country what's the percentage rent out a bit like 80% well it's just over it's just over it's about 60% of about 60% that they create."

" Between seven and and you know create debate in terms of job creation we need them. You know we need to provide more incentives need to encourage some more to create jobs not cut jobs man and that's what. That's what people are looking for in the country right now is jobs jobs jobs jobs. And unfortunately these the health care plans both in terms that punitive nature of the tax increases the employer mandates. Be perpetually -- to carry on employers. Again sucks you know this private capital the oxygen that they need in order to grow and create jobs so. Very disconcerting and there is the disconnect but but I think small business owners calling their house members calling your senators they're making a different."

" It's not always seen -- grassroots certainly make a little better than they are signed last election and Karen Kerrigan. President and CEO of CB council thank you so much all my pleasure good to see him. We'll be right back."

" Welcome back foxbusiness.com -- don't forget you can damn -- that very cool act on your phone and watch sat up everywhere. Just watch me give us something watch this -- innocent in the Birmingham Alabama. They're going to Birmingham Alabama. -- LY get them."

" to drive -- really probably. It decelerated when you when you went through it love them. You know what actually happened just gonna say probably not unlike account I ever happened and then there's a lot of similarities between north Jersey daycare and southern big here all copyrighted by the way that's wonder. Lots of big -- a big hair. Gwen Stefani of no doubt right yeah I got crazy not. It's crazy blonde sex is -- cute little kid who is he he's got funky little duties they do anyway she still paying -- If you don't believe this. The video game publisher Activision blizzard over the use up their likeness of the bands likeness. On the new bands hero products she thinks that they're making it out to look -- And it is characters and yeah China looks like. It's your seat saying that they're making they're -- to seem to be some big old virtual carry involved while the other members of the band I'd say she did he. -- Am I going to do when you go solo. C'mon OK there's that old enough to many in this day needs I think I you would think like you saying you take anything you can get. Not to mention you -- hold a noon. -- generation of kids now who are listening to stuff alive and don't remember no doubt from the the early days no offense but don't speak. I don't you know I mean much like I said my kids are learning music that they would never ever learned that the work for her. Dance -- guitar -- another version of it now."

" That got paid though that's the thing I mean. You're there lightness is very important and certainly their music is everything to them and and -- get paid for along the way -- is the way it works. I think ambulances got. Chill out. TJ Mahony is here in one of the most chill guys I know TJ Mahony co-founder of flip T dot com is that he's actually going to tell us. How we can chill out on a budget. -- Maybe someplace warm right you got a few destinations -- wants us."

" Well. From my perspective. When we look at the automotive industry -- nice little -- with cars for clunker. Financial services -- council -- safer with type. But for the personal travel with a swimming in the that this is vacation Reynolds we're finding that people running out to other people's homes Robinson hotels. It's offering huge cost savings across the country."

" And that's when things you guys do that that is what you do -- dot com but what if somebody's just used to staying in hotels and maybe they're little leery of running somebody else's home. I mean how would you put -- disable it you gotta save a lot of money and it's really easy to do."

" Absolutely so wolf first and foremost the economic savings tend to be the biggest traction. We recently interviewed several hundred people who -- for for Q -- 58% of them felt like pick up between 40% savings. Versus had to stay in the hotel. But within that what they find. To be the most attractive as a larger kitchen. Finding out more personal space and when it comes to the you know the predictability over what -- get at a hotel. The fact is if you look at -- and you look at the general customer satisfaction over 90% of people. Actually recommend that home the statement so the satisfaction that people have staying with vacation home actually far exceed the hotel."

" I thought about what this is -- key pretty much matches people together so. Not sure why am I don't want to come vacation in Jersey but if they did I put my house on. Break ends and then. You can go find one in I don't know Birmingham Alabama and and I could go rent there for a period of time presuming somebody is a part of your system."

" it's not a whole exchange. It's there are people who own second homes and they don't utilized very often and so -- make -- available for a so if you -- your place you have to spare that person's house so Jersey -- actually. Relatively large vacation rental market and so if you owned a home. What would happen if people contact -- coming for. December won't. If someone did a bad record June checked -- we can you say quit I'm running for 1500 dollars. You would talk to them you'd you'd figure out how to change the keys they come in. And that's the exchange at the very person -- change there's actually cost savings on the traveler side. The owner of the home actually -- how do you make money. We actually charge people to advertise on our side so we feature over a 100000 homes throughout the world. Until there's a small fee in order to advertise your home and that's it we just simply help people put a marketplace we help travelers find homes and whatever definition. And it's not just petition accomplishment and cities we actually hundreds of listings in New York City. San Francisco Boston concerts really emergency as great alternative lodging experience. That forced people more space more cost savings. In you know we're seeing this trend of you know we -- that for the parents vacation yet wolf what's happening is people are driving to their destination to regional. -- markets like Killington Vermont announced known. Big bear California. What's happening is that this human events and launching this actually. -- year over year increases in those markets -- people are driving term -- vacation -- are very popular alternative. Whereas fly to destinations such as Aspen Colorado who really struggle. And so if you didn't have you know a nice ski vacation look at your regional market you'll find a lot of vacation -- A lot of times you talked the owner of the property management will actually put in with -- Packages -- had just with the just like the hotel it. Because people with their personal people with -- influences your home. You want them to enjoy your time so it's just great kind of communal here here happy you know."

" and what I'm finding given the the current environment you finding that. There was a slowdown in the spring with bookings and then on the -- many innocent people signal and I can take a vacation like you say can drive at least they get. Now I can't go to Hawaii anymore there may be making go down the shores and and you find more than now."

" in the regional markets we've actually seen your your increases in interest fly to destinations like Hawaii -- had more trouble. But what we. But beyond what we what we're seeing on the traveler's side. That people willing to rent out their homes is actually increasing so -- hot spots now. -- the hot spots are in the northeast. Killington. Killington Vermont is okay for the northeast of travelers and Tahoe and big bear California for California. People are kind of deciding not to fly to you time not to kept Colorado and so they're driving to -- that are driving the Tahoe. So that's forcing a lot of interest crop up right now. And of course. Vancouver. With the winner -- base and whistler where there's a lot of new homes being lifted and a lot of people looking for accommodation."

" The great city as well how far advanced say you want to tasty vacation liabilities hotspots who helped finance the need to get on board on this. Yet all that's that's a great question -- straight answer because the Paxton bomb. You can get the best deals by looking for an advance our last minute. Where people tend to be in the middle. What shall get as you know. But by being about sixty days at a time you'll get a good selection of homes -- you might not get -- get a good deal. But ultimately if you wait for the last minute you'll get a deal that you might not have the best selection."

" I'm in turn around on it I'm in Miami Beach looking for a Condo for the kids tonight. Don't prices are decent locations good."

" all outstanding -- good for you flip -- dot com TJ Mahony thanks and we appreciate it thank you send down -- wrote. I'll -- this news about wrapping up for a scalpel 170 not wait a minute we did it again we did hire at the -- I -- that the open of likely. Really mad at a lot today. Some things -- We'll see you tomorrow night live in the city -- me ark yes."