10/25/2009 Money Show Financial News Of The Week

" She eyed Susan Kaplan. On. We are very happy to have -- back for a number of reasons including the fact she gets a to do a a fall. Financial news of the week which I know people who's been -- exactly right and you've been gone for two weeks so we knew is I -- we miss it."

" Basically things have really been strengthening in the economy. You're today it is now almost 14% of the S&P 500 is up nineteen point I'm almost 20% and the NASDAQ is up 36%. The technology portion of the economy has really been coming back."

" Incredibly strongly. And -- I just I have to interject this the the news media in general which we've both been very critical when it comes to financial news coverage and we're all went. Actually ballistic when the market was down to 13400. And since it's come back. The only time that they made a big deal about it is when was about to hit 10000 which is which is the -- it's great that it did but it's just it's just the number. But other that they haven't -- and then say in the marked come back the market's coming back when it goes down it's like the world the world is coming to an end."

" Not only have they not been saying the market's coming back the market's coming back but they've been saying well September the worst month of so there. The worst month of all cross over 10000. It's going to be a double dog. Dead yet I think I think 25 absurd to think 25% of this recession. Is due to the -- it is like self fulfilling prophets prophesy from from the -- absolutely right. Om basically for the third quarter profits were are infinitely better than anyone. Thought. As of right now 40% of the S&P 500 companies have reported. And earnings. Are better than they thought the weak trade dollar in the weak dollar. Everyone is concerned about but in terms of having been in Europe. There are hysterical. Because our exports. Are doing so swimmingly well and our imports have really cutbacks -- for our economy. Is has been varies of a strengthening. And and frankly in Europe there are very concerned that the Euro over the dollar. Is prohibiting us from a big customer from buying things. There's also go to -- actually played it and and what he's going travelling like you did exactly our favor in addition to that you know everyone's talking about the debt and how. And now they shouldn't have helped all of the banks they shouldn't have helped AIG they shouldn't have the government shouldn't have done what they did he knows of are staggering debt. There's a very good studies done. Internationally. And to the government debt as a percentage of GDP gross domestic product. Off for the United States is about 5050. For Britain. Is that the death as a percentage of their hold GDP. 70%. France 77%. Germany 80%. Italy won fifteen. In Japan that president that and -- loser Ramallah. 200."

" Russa doesn't surprise you're -- barest of the war as a -- all right -- an image in the ninety's and they still haven't recovered I was saying yesterday how. The one thing the government has done it is is basically. To be the credit markets back from the abyss and the United States even with the problem Graham we're still the strongest economy in the world."

" Exactly right and Bernanke. A student of the depression -- has correctly done the opposite of what was -- then and then this to really help. So. In the world of rising national that's Japan's economy is really in trouble."

" I was talking about this yesterday was that bush or was -- Obama who. -- burn burn it -- Bernanke there's frankly I think that's the smartest thing has been done. Relative to helping the economy in the last two years."

" Interestingly enough I think it was bush yeah yeah that's what I thought. And I indeed it -- it predates I Obama's on the Niger and that. And that is -- very very smart smart choice and his heart on the sales of existing homes. Up nine point 4%. So so little by little the housing market is coming back. And all of these. And are helping us. Consumers have cut borrowing by twelve billion dollars in August some voluntary -- voluntary and talked about that too. That the credit card companies have really cut back in no credit card banks. On in terms of lending and although that's incredibly frustrating. Economically. We've got less personal debt than we did in in August by twelve billion dollar."

" As it really helps we've talked about that's the so relying and that's actually have apparel through -- relying you're talking about which is a lot of businesses that do become too bloated now it's painful very painful but the fact that the this recession is slow because a lot of businesses are taking the time to to take get leaner and -- Ultimately in the long and I think that make the overall and we're talking 234 years down the road are all over long period time and they'll make the economy better. Businesses will be leaner and meaner and people will have more savings which you and I always talk about is too low."

" It bodes very well floor anymore I mean stream. Economic strength like field days before there was so much -- personally in business which means the -- won't be as high but the -- won't be as low which is which is a lot better. Part of the bomb ugliness of the credit cards that are. Never -- happy topic for us anyway is that a lot of people in terms of reestablishing. Their debt we tell them to. To really go in for a prepaid cards debit cards things like that. But they have really raise the rates and policies and so you have to even if you want to establish a credit. And by a prepaid card believe it or not even -- putting in all the money up front the fees can be staggering. Absolutely staggering and on some of them. Mom for a very little. Amount on the card. They -- monthly charge is about thirty dollars a month with twin you don't have money you can't absolutely afford that so. In any credit card as nauseating as that may be you have to read all the small different you have to find and there's an easy solution that which is -- getting it together secured credit card which virtually anybody can get and the charges for those may be a hundred bucks a year. Which is a lot thirty bucks a month we're talking an 85600. -- here it's a big difference. There's a big headline today in that 65. And up looking for work -- that the jobless rate is soaring among older workers a lot of older workers. In losing a huge amount of their 401K. Things like that are trying to go back to work in the jobs aren't there. Those who are instead who have not left. Bomb are also hurting employment for young people around trying to commend. But the real message with this is that first of all it's much harder to get a position because. Health care costs are rapidly becoming a huge factor. Like it or not -- being hired. And if you're over 65 years old Nolan want to on their health care plan no matter how big the company is. So the real message most of all. Do not stepped off that conveyor belt and -- you are. Absolutely sure you can afford it because to go back is becoming increasingly. More impossible transfers are you very end the matter and you can never go back. And earn as effortlessly the money that you can -- when you've been doing something for 102030 years and want."

" It's a small. The solution. If you if you will put in some cases if you go back to companies they looked at -- work as an independent contractor. You have to pay me any -- benefits that's I'm a middle ground and sometimes accompanies a wealth -- got lots of of experience. If we can take them on as independent contract we have to put -- on on the health care if you it's not amused is what jab at least if you have a job so to speak."

" That you're absolutely right or part time you don't get the benefit yes but you world but you have a job. On it may do you really time to rethink your health benefit choices. Whatever you do with your health benefits during the current open enrollment season for 2010 is a good chance it won't be what you did last year. Time honored evergreen option defaulting to your current plan may simply no longer be an option -- the employer -- and offers that plan or the terms may be so radically different. You may no longer wanted. This is becoming a huge issue nationally but for individual businesses headlines of sit across the board that for businesses. Health care plan no health care plan that rise in expense to the business is going to be 15%. Many businesses are simply not taking and in part of dropping down and and making them the business more efficient are cutting the health plan that you currently have so. Don't assume your health care plan is staying the same because that probably is not -- 69 --"