8/2/09: Financial News of the Week

" And -- show is on line. The fundamental. Turned to Richie yeah. Saturday's one before Sunday's nine -- noon on."

" This -- on how are you and I have a question for you before even -- then it's gonna rain today."

" And most of the rain is over -- good site go play golf connected terrible anyway -- doing is over and."

" But it's going to be a better I don't care and cloudy is like a good day this it's ridiculous self. Hey how are you wouldn't be what's in the -- financial news this week I'm terrific."

" And obviously it's been a delightful week now of the year today returns for the Dow is up four and a half percent."

" The S and he over 9000. And I can't help -- point out people it was down to 6400 is back over 9000. Entries nine NASDAQ is that 25%."

" Things have come back all around durable goods orders have increased in June. And so that would really signal manufacturing should expand by the end of the year. Says the economy nationally when they look at all the cities Austin retailers and manufacturers. Believe the worst is so lurk."

" And -- and I'm going forward Massachusetts's ahead of the curve correcting absolutely end of the curve."

" Three -- descent in home prices over more signs of recovery in Massachusetts. And it's across the board it's all kinds of things plus. On the housing market they feel the drop this over single family homes sales drop is over consumer confidence is -- In unemployment claims have stopped growing. On new homes Elton John and so united one after the other but basically that's now."

" The climate there weren't right now there -- two issues that I want to discuss in detail one is the fact that -- money market rates are hideously low. And people are trying to get a higher rate of return and that terrifies me now the national money market rates there's zero. Point 3%. As elusive last week's in the B charging festival what's happening right which are basically nothing. Brand new investment and indexed CDs. Balance risk and safety. And this -- the it went -- something new in the world and so what the investors seeking both safety and the hedge against inflation are snapping up a product that hasn't attracted much attention in recent years market index CDs. Unlike traditional CDs which -- present interest rates for specific term. And index CD link to one or more financial indices that is the S&P 500. Is the index. To which your CD is tide rises you capture at least a portion of their return. If the index -- you still that your original deposit. To Arafat's faults. It's. This that's that's the paragraph you're going to hear from your local. Banking represented them in all of something thing about that later. On index CDs you have to keep them for a full term 45 years none of the short term business. Are they FDIC approved the FDIC. Backed the contract. I repeat backs the contract. Not your value in the CD. If you're tied to an index in the index loses a lot of money. They don't have to give you all your money back so the FDIC is backing that contract. Not you getting all your money back. Bomb if the long term rate in the specific quarter's lower than the short term rates. Billington trying to think about this the investor doesn't collect any interest for that period. And it goes there are barriers there are knockout rates if the index rose more than 60% during the investment turned. A good thing right you wouldn't get any interest I mean there are so many twists and turns in this. Forget it. I don't want to investing in the eighties. Now they have also -- I was gonna save redefine -- by the -- and I ended readers they don't do it -- yeah either you abounds from we have some market risk or UN a CD. There's an index CD you do not want. There have been many many studies this week. All about. Financial advisers. And essentially. A their proposals. That brokers will have to -- clients' interest first is true now now they're proposing stricter standards. Full service brokers. Have been allowed to portray themselves to the public as financial advisers all without having to act in their clients' best interest which is that true hallmark of an advisory relationship. And therefore their lots of things saying every -- going to independents because of the big brokerage. They don't have to be an adviser they don't have to put your interests first. So."

" Sponsorship well I don't -- too cynical when I will announce assurance that in the sound. Mention that social social are all that. Larger percentage of financial advisers forgery -- first certainly the -- selling you. And annuities and won what nine. That's right but most of those are brokers and do not have a fiduciary. Responsibility for the present and money market. Now I received a phone calls along these lines. If from my local Bank of America represented and they said this phone call is notification. To you now as we all now. Bank of America had severe losses and taking Merrill Lynch. This call to me said Susan Kaplan near valued customer. And this is your notification. That from now -- banking representative. Will be a broker for Merrill Lynch and I said. So you mean someone's gonna trying to hustle investments with my banking account Allman and now we're giving you the best of both -- right. In this is you personally called you actually make you get an tape I cannot wait for the call from my bank. Because I've gotten now a tape recording is there and I wouldn't take it. This this thing it terrifies me about this is. The fact that they made this human call -- I think you have to legally lip and penetrated. Illegally let them -- illegally let them know the Dodgers investment advice good. On the thing that scares me is that this is some kind of notification. Clearly in the nice -- like is that. Delve into office and I securities division has been all over a lot of things and I'm sure there are aware of this as well. But you know he does have -- give him give him crap I think it is a very did you of trying to protect the people of -- consumers -- Because my fear is this was the notification. So that then. Win. Merrill Lynch adviser calls and says this is your Bank of America representative. That then they don't have to say it then. That is the only reason they go through the trouble of making this call to -- saying this is you notification. And my fear isn't -- of you out there my fear is for your grandmother. This was used to kill me from the Mac yes it is this and their four. Hustled them into an investment that is not a bank investment that is not FDIC insured that is a very different. Set of rules and set of investment."

" The biggest point there is a lot especially older people not are not only but especially older people tend if they hear it's. From the back then they think it's they think it is like FDIC insured like -- yeah checking account that's the that's the biggest problem people assume that. And that's when the and then if they find out the bad news when they lose money. The other issue end and my disclosure we'll have too late because then lifted the car. So little -- the American -- right now go again. I'll I'll think you're right -- best fit it on second thought don't."

" Texas natives are flocking to confess their students to the IRS. As you know lest it be talked about the fact that if you have a foreign bank account even for as little as less than 10000 dollars. The IRS is coming after you. Wealthy taxpayers have inundated the iris in recent weeks with the quest to come clean for path to activation -- the government crackdown. On undeclared income from overseas accounts the volume has been so great that Wednesday the IRS issued to streamline three page form. Protect ticket tax -- seeking entry into the temporary voluntary disclosure program. A lot of these really. It came up in the hide under the bushes fears that you know you know run to Switzerland if if this country."

" Quick question because. I understand with the government's doing out to people should be. Breaking the law but. The fact that they made is this preliminary agreement UBS that switch -- I think it's excellent yeah gonna release like 10000. Pieces of information and -- laws say. This stuff is private I think that's totally wrong and I the US government is is."

" He's go way over the line what do you think. I think that you I don't have anything you -- yes UBS's had a lot of trouble. And that's why there divulging this -- that probably -- Slippery slope I -- but. But the reality is that the real reality is to hold accounts in Switzerland you know. EU not only don't earn anything their fees are exorbitant right you paid really to have them money there's -- gonna make any."

" Profit basically a gigantic. And safety deposit box but nobody can know what's there and -- else they can Noah and his -- or privacy in this world."

" Well I think that's accurate than I and I think it's going away more and more and more -- I don't go out in time I don't like that. Not not that they not the government gives I have to think but I'm just saying I think I think frankly if it at the consumers were more open arms about most people don't pay attention. Unemployment continues to be a real problem on. Everywhere. In more and more people have been calling me about getting at home. Jobs to at least begin that way whether it wildly continue to look. On essentially. There are ways he can get at home jobs that you have to be prepared on to really spend some. Money in time retraining in upgrading your credentials so it's appropriate for four -- going to do. To emphasize the value can bring to the company now rather than your time away. Recount pastoral work its successes. In specific terms that as if they happened yesterday. -- thing happened twenty years ago. Network in depth asking for critiques of your -- main interview skills from other people -- now there -- many more of these networking groups that never were before. If asked to explain your career break briefly and in positive terms than movement. But the bottom line is there -- many many web sites I won't read any because than now. But you -- wondering what they learn. But but Google renowned being aren't credible search engines all you have to do his work at home. Played in -- get these sites and so there are still valid ones out there and I have a number of clients doing them. And earning 5060000. Dollars a year once again don't email link up Rick about it. And that's that's."

" Thanks for downloading and listening to the money show with a -- Come back coffins Boston's -- evolution but these 69 WTKK. It is fun line and on them."