WRKO>Audio & Video on Demand>>Full Show 10-13-15

Full Show 10-13-15

Oct 13, 2015|

Full Show 10-13-15 by The Financial Exchange

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

I. This is the financial exchange with Barry Armstrong. Sure streets stay on top of breaking business news and learn how to manage your money to help you towards a more secure future. And now broadcasting live from the insurer mentioned John John studios it's the financial exchange with your host. Barry Armstrong. Welcome to the financial exchange variant truck with you here on Tuesday and I'll tell you why it. The mergers just keep getting bigger by the day yesterday we reported. The merger of Dell that was early in mergers and acquisitions dal acquiring EMC. Today we are reporting on the SABMiller. And he'd be in bad. Is it a merger or is it an acquisition talks on. I would say it's more merger and anything else and it that it technically you're gonna have an acquisition here with. SABMiller. It's accepting a buyout offer from Anheuser-Busch in about 44 pounds it appears they're getting close that deal it's not not official yet right now. But it does appear they have the framework of a deal that they can at least begin to work through with a little bit more detail now. After initially rubber Anheuser-Busch had been rebuffed three times previously by SABMiller so we're talking last week about whether or not they were going to continue their pursuit. Obviously they did to this point and when you look at the purchase price of this potential deal represents nearly 50% premium on what the stock had been trading at. Prior to these merger discussions. And so it certainly is going to be a windfall. Four SEB Miller executives as well stockholder. I'll tell you who else is a big winner in that deal that is Molson Coors they have the best stock symbol known to mankind. It is T eight. That's the stocks is good for milk Molson Coors Brewing corporation. Their stock shot up twelve point 7% they're the big IR arguably they're the biggest beneficiary of this deal. What do you think they're the biggest beneficiary is cook. They're gonna have to spin off so many deals and Wilson's been picked them up and did the prices already been set they get the Mehdi discounted price that's why a stock is up. Nine dollars and 95 cents so did you make money if you owned SABMiller absolutely. If it did you make money field Altria and all these companies that were involved in the merger tree dead but I tell you what I'm not sure that Molson Coors is in the biggest winner a ball. Yet and certainly stockholders are going to do well there and if you look at just how. That stock has performed over the last three months as well. Gives you a little bit of an indication as to what people were expecting when this deal was announced because even Molson Coors you go back to the middle of September this was a stock that was trading in the high sixties now 8850 a share so significant move of about 30%. On the stock that really isn't directly involved in this deal in any way shape or form. You know you mentioned that this is a deal that will likely occur and I agree with that Thursday. Break up the negotiated in this deal track three billion. Not million a three billion dollars so if for any reason right they can't get this deal done via. In bed has to pay SEV Miller three billion dollars. Cute I'd never seen a break up the boy inaccurate exit. And that's what really points to it's another indicated that this is a deal that's going to get done simply because they don't wanna be paying three billion dollars just talk for a couple months ago GE selling their commercial lending business to Wells Fargo no news there really pressed as expected gets its pretty quiet they denounced a few months back they were exploring. A sale for that division simply wanting to get out of it in order to make themselves a little bit more nimble and Wells Fargo good place for that divisional and it's very stable very well run organization I think they'll end up doing fine there. Twitter announcing they're laying off 336. I believe it is. Engineers. They're stock up 5% on the news. Yet the stock is moving on this and let you know on not a big fan of Twitter I think that this is pretty much rearranging the deck chairs on the Titanic at this point. I I don't think that Twitter can effectively. Run itself. Profitably. With the way it's set up today the talking about doing some different things that potentially can get some additional revenue coming in. The problem is I think a lot of those things in particular lengthening what people are able to write on it as well as changing up. The Albert and algorithms for how people see news on Twitter with the figure out how to make play and it's come to the problem is both of those things get rid of what really makes the heart of Twitter and as such I think it loses a lot of its its real real traffic and then provider just because it's not going to be. What it has been to this point I think. Look I use Twitter I think it's a great service to get information today but I think it's terrible company. All right let's take a look at Eli Lilly they have halted development. Of their experimental. Cholesterol drug this is going to be a blockbuster drug it's not working out that way. Yet and this is going to result in about a ninety million dollar pretax charge but more importantly when you look at this. The move today based on this at least initially over the or rather yesterday. Based on this a raised about 7% of the company's market cap about seven billion dollars taken out simply because that had been projected. To potentially be a blockbuster drug once it finally moved through the pipeline and will is a company that has it's done well for investors over the last five years if you look at it. It has moved. All how your stocks are well but it will in particular if you look at Willie compared to some of the other ones okay. If you have really right next to Pfizer for example. Okay and it just pulling it up right now justice that we can actually take a look at and well he's up about a 120%. Buys is up about 85 over that period so brilliant particular. Had rallied pretty strongly over the last five years or so this is definitely something that is going to be concerned for them and the reason for that is they've lost their patents on a couple of older drugs that it really been pretty key ones and their pipeline. When they also grow differently they tried to develop their own drugs as opposed to most drug companies go out by companies get a ready they actually have research and development. Yet they don't do as much acquisition it's it's really a much more organic growth process for them. And this is a company that when you look at it. It is I believe you the I think it's the fifth biggest pharma manufacturer in the world behind Bristol-Myers Squibb Sana beef Pfizer. And Merck AstraZeneca is a little bit smaller than they are so this is a major company taking pretty big hit based on the the lack of development in this drug here. And I think when you look at it. It certainly is something that they're going to have to replace their pipeline in order to continue to grow the company for investors. Remains to be seen whether they can figure out what a new strategy is don't. Forward for do you drink coffee. Pretty straightforward question I know you do Tucker you're here. First hole battle in the weight when he's in the office I don't tell attackers arrived as I hear the copy but don't that's his first tasks might go to upon arriving at the office. Sharp does not drink copy he's not forget he's not gonna live as long as the to a bus talker see. The there was a study done. In England about coffee. Joba has many positive attribute to tie in a natural. Polly females which are not micro nutrients which scientists. Are increasingly attributing a role in the prevention of degenerative illnesses. Like cancer. High blood pressure and cardiovascular disease that's one reason to drink coffee. It's also believed. That people who drink two to three cups of coffee today show lower rates of diabetes. Then those who do not drink any coffee trucks already taken back. Time to enter it yeah actually I don't know if I want chapter in coffee he'd be bouts and off the walls. Pretty good. You know everywhere because I know I drank topping the gotta wake up in the morning I feel great now don't need anything to get me up in the morning I'm I'm ready to go pretty. Tucker and I need a little shot in the arm and that's who you knew exactly but let's how rural and says it's how we. That there is a report out that suggests that we are headed into a recession. In the year 2016. The 73 point five trillion dollar global economy is expected to grow. Three point 1% in the year 2015 and three point 6% in the year 2016. This according to the I am apt. However. William Ruder I think that's value prevents his name he's an economist at Citigroup. He looks at the world landscape and sees an economy performing substantially. Below potential output. Which he uses as the general benchmark for the idea of the global recession. With that in mind he said the chances of a global recession in the year 2016. Are growing. Our chief economist mr. Warren most cooler were join us in the next segment to talk about evidence that he has observed that leads him to believe. That we are headed into a global economy recession. In your 20s16 were both alert is up next on the financial exchange were producing this program from the insurer match dot com studios. Oh where. And it can also have some money get your knowledge on the right here is the financial exchange from the financial exchange radio network. Low interest rates are great for people who are borrowing money but they can create a real hardship for savers in today's low interest rate environment I consider cash to be really easy money because it isn't earning much of anything for you this is very are strong and I have good news for you to you should probably grab a pencil and paper we have found a highly rated insurance company that is offering a three year deferred annuity with an annual interest rate of one point 95%. This single premium deferred annuity will pay you one point 95%. Per year. And then at the end of three years you are free to take the money out without any surrender charges this is the best rate I've been able to find to learn more about the three year fixed annuity that earns one point 95% call my office at 1803934001. That's 803934001. Principal and interest guaranteed as long as you hold your contract troubling for the guarantee period guarantees are backed by the claims paying ability of the insurance company. Is the bull market about and many analysts think so given the high degree of volatility that exist in the stock market right now and if they are right having a sound financial plan is bound to be one of the most important issues that you wanna be on top hi this is very Armstrong I've been helping my listeners with their financial planning needs for years and I'd like to help you too if the current uncertainty on Wall Street make you uncomfortable give me a call at 8552710183. And all review your current portfolio for free that's 8552710183. The appointment will take about an hour but wouldn't you give up an hour of your day to help you make better informed decisions call me today and setup your free consultation 855271018385527101. 83 securities are for your securities America incorporated member finger as a PC advisory services are printer securities America advisors incorporated Barry Armstrong represented if our drug advisory group in the securities America companies are unaffiliated. This is very are strong and I'm joined today by estate planning attorney Todd what's key from the law firm of Cushing in dole and with your legal exchange quick tip of the day. Today we're talking about drafting tips for your Medicaid income trusts and Todd there have been some cases. Every week but here periodically. I've read about some cases where the states are challenging. These trusts that have been drafted for asset protection purposes you know and they are in and it becoming a situation where more more people need this kind of protection. But unfortunately they're going to people who are not experts in the field and bad facts make bad law and it tends to help people that these trusts you know they. They don't work because I'm hearing about all these challenges. Folks on the Italian. They work they just need to be drafted properly and if they are. Then they're gonna work just fine. To protect your assets from these costs one of the problems is you know a poor trigger clause they might have an error clog of that deals with. You know a purpose and you have the ability to live in the community and pay all bills and use the money for a we know whenever you need. Folks don't what purpose I clauses. In these documents because it sounds like. Money can come now. Principal can come out when really it should not be that way. So I think it just comes down the fact that bad facts make bad law and please don't get your information around the water cooler you know. Don't listen to somebody that you hear somebody who says Alia. Trust don't work. These irrevocable trust to work but drafting its key Cushing and Dolan has been helping families like yours for more than thirty years and they can help your family as well. Request Todd lets these brand new guide at 8668485699. Drafting tips for your Medicaid income trust 668. Rory. 5699. If you already have a trust give it a checkup call now 8668. Rory 5699. Securities opera through securities America income member finreg SIPC and advisory services offered through securities America advisors and Gerry Armstrong represented at Armstrong advisory group in the securities American companies are unaffiliated. Olympian to read the financial and JoAnne bush got dunked on the financial exchange. These financial exchange or radio network it. Now the chief economist at Citigroup says we're going into global recession. In the year 2016. I'm not sure or not already in one at least that's worn mostly has to say. Where in most alert the author. And father of modern monetary theory joins us now on the financial exchange weren't our week in a recession already. I bearish and are we we probably are quite. We don't. We usually get revised into recession you know so are there in 20072008. A Weaver we got revised into recession. A couple of quarters Obi what we do it. No door dollar now Warren domestically here in the United States we define a recession. As two consecutive quarters with negative growth very negative Jeff. But it sounds like globally. A recession has a different definition why is that. You know that it's just academic they have different definitions of mighty mighty supplies. Nobody even have twenty different definitions for pleasure you know you've got on. The Consumer Price Index committed to a core prices in the and you guys you know the Tom Brady issue and you don't place that definition. So this is just one more aware. Who knows what they don't want sectors and recession and other sectors and all kind of recently as it it's just all off. You know one mixed. We know who you'll regret you recently came back from Spain to what is what's the with the Europe with what's the economy doing in in Europe. Well it's. If you like it stop. Getting worse. And compliments doctor. Spent 23%. And they the old Levin something let sent across Europe and they've had a little bit of a respite right because. By lowering costs and crushing wages aren't you can get people work in the 12100 euros while the they've managed to increase exports that there record trade surplus of 31. Billion Euro bought that creates. Which means at some point associated with a little bit of growth associate with that but fortunately. Which is different story although it does is make your pockets stronger until he goes away so that does not last very long transitory. And they'll be right back where they were such stopped getting worse for awhile as their exports to topic. That process itself heating it to. Get worse. Warren you know counter to that though I love it you've got strengths and housing here at least in the united you're actually out. You've got strengths and in car sales and construction spending seems to be picking up so that would seem. Powder to the argument that we're gonna go into a recession in 2016 domestically. What is your data showed do you think we're gonna go under recession here in the United States next year. Oregon again we've we've poor idea I I saw most of the talking about have been decelerating and oil. Broke back November. And indeed if you play the numbers that growth has been decelerate yet that the portraits going down and but it is like apple what is a normal. And if there was a little bit of political because it was. They get a tax advantage you're gonna expire at 215 canal it is some permits should go up and all the so that's been person's going down again so. You know we had a very minor. The car sales aren't you know I just got if you look at domestic ourselves you know they're down here. Kahan and pork are social content you keep it that the opposite that slows them as to which. You know so. What Bahrain we have cut has been port imports which is under minding our own employment and income situation. If you're the second quarter gross domestic into them. It was up all the ports up. And now GDP in GI's the same thing. You cut GDP is everything people bought GI's the money they got an assault but it is the same number I should mention for. They're they're two different ways to estimate because nobody gets a lot of numbers. This time as acute and urgent it was. The Buick in what Bill Weir cutie he was. It was reporting big adopted or funnel is speaking out in a very thoughtful parents are reported seeing. You know top 1% they'll test the key for. Do you think it Otto you. Where do you think that the Fed should have raised rates back last month when they had the chance and do you think they'll raise rates in December. I don't think it matters or output appointment growth within the greatest respect court appointed one. Fertility they've got back quicker rate is actually adds interest to compete economy supports this is your rates have been re moving interest income Q we've been removing. Hundred billion your interest into which has been contributing to the slow economy. But the right. Revenue per slow economy is either cut taxes are spent the raise interest rates paid money to people not working. To work. Give money to. Yeah for a play that output. OK so but you know that's just my personal preference I'd rather have a tax cut in interest rates. But those should be tried. You know as little. Given the weak economy I would say yeah I'd say I would help the parents that no sweepers or what get a big one tactical step. Right yeah tax cut would be nice that would help things. Yet that would. Gallagher a little bit of spike attacks about if you have particularly in extra 650 dollar amount is. Right anything any don't at this point it we are the would be of benefit. Our weren't thank you very much for your time we appreciate your product that's worn those are joining us today on the financial exchange and glee in comes back to chart we talked about it you know leave the Fed. Is out of bullets right now even if they raise rates a quarter point up and have a big effect one way or the other. No it and that's why I think that all of the hand wringing over oh you know that they can't raise it because things things are slowing down but it's a quarter of a point if the economy can't is they've become can't sustain a quarter point hike can't sustain a zero point like so it's I think that that's all just. It kind of water under the bridge at this point and when I looked at this. And when you look at what's going on in the US economy no doubt that the last three months in particular you've seen a deceleration in some of the day. Now it still is significantly ahead. Of what you're seeing in places. That are slowing much much more rapidly right now most notably China which has seen its data. Really fall apart pretty quickly over the last six months yourself. I think that when you look at it there has been a flock to quality plucked to safety in the US recently. And you know there's a couple different ways that you can interpret that. One of which is look if you're moving into safer areas typically because there's a lot of negativity on the horizon. But often you well you also conceived very good buying opportunities when there is such negative sentiment out there so. I think for any investor. That is considering either look do I use this as a buying opportunity or do I use this as a selling opportunity with this recent rally that we've had. I think you look at and say look you know I can be taking all your money and throwing it in today no matter what you don't. Make moves in that way so what ever you decide to do you wanna be doing it over the next three to four months if you're planning to hold these as long term positions or if you look to make moving get a little bit lighter today. Don't forget Cushing and Dolan is making available a guide it's called drafting tips for your Medicaid income only trust. If you Nike to receive a copy of this guide call toll free 8668485699. Learn as to whether or not the trust that you had drafted was done properly or not the phone number is 866. 8485699. Toll free 866. 8485699. You know. On this day in history the cornerstone. Of the White House was late in the year 18100 to beast precise. Who is the first president of the United States to reside in the White House. Our text number is 68680. Should you happen to know the correct answer to back question. Text us on this day in history the cornerstone of the White House was laid. In the year 18100 who was the first president to resides in the White House again our text number 68680. We giveaway prizes to the first listener. Who comes in with the correct answer. Street oil pulled back and coconut oil with the 4696. Handle on it I thought we are for these days there aren't that we're gonna get over fifteen stay there. Yeah I think when you looked at the data is a lot of it has to do with we have seen some renewed concerns about global demand and I think that's that's really been what's driving this to this point you have the oversupply. And global demand is simply not growing quickly enough. To make up for that so. What we are seen and we've talked about is where I think oil probably gonna stay in that 45 to fifty range for quite awhile. Just because I don't see real bullish case to move beyond that on the upside and the downside that you protect naturally by supply and demand. You're listening to the financial exchange from the insurer match dot com studio. Making your Smartphone even smarter Dell logo mobile lab by surging financial exchange joke in nineteen Jordan who who played Stewart this is the financial exchange radio network. Hi this is very Armstrong and if you own rental property you're gonna wanna hear about this exclusive program offered by -- your bank it's called -- rent and it's designed specifically to help landlords -- seed and deposit their rent checks electronically as opposed to having to wait for the mail call leader bank right now if you're interested in -- ranked the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and will help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for -- rent upon the execution of their league and why wouldn't you wanna do that once it's set up you never have to make another change during the -- period he -- -- -- free service if you have an account with leader bank and if not it will simply cost to a small monthly -- -- leader bank right now at eight. 87769178900. That's 8776917900. Or go to zero red dot com for more information. Member FDIC area are strong here and I'm joined by estate planning attorney Todd what's key from Cushing and Dolan. And we're talking about drafting tips for your Medicaid. Income trust to pot if somebody's done their trust planning. What's the biggest red flag. That they should be looking for in terms of the drafting of their trust documents in a bear that's a fair question because people that have these trusts are gonna say wait and IQ I can't read through this document and try to figure out what's going on. Folks you can in this regard generally it's right in the first may be paragraph two or three of your documents gonna say what you can do during your life gonna have a heading there. When you look down there I want you make sure that it says you're entitled to the income and that your not entitled to the principle at least not directly. Now that seems obvious and it would be easy to fine but what I worry about. In what I want you look for folks is. If you're reading through your trust. And you see the word income to you. But then nothing regarding principle that's called silence. As to principal. If they don't comment in the trust and prohibit the distribution of principle who you. Then there are cases where they will say that if it is not prohibited that it must be able to come out food. That is not the result you want a fine five and ten years after you don't trust so you wanna make sure that these are drafted properly and also understand how they work the do's and don'ts of the trust from an operational standpoint that's what we're offering. Very good Cushing and dole has been helping families just like cure for the last thirty years. And they can help you as well request Todd lets these brand new guide here's the phone number 8668485699. Drafting tips for your Medicaid income trust that is the name of this month guide. If you already have a trust given a check up call now 866. Or eight. 5699. That number again 8668. 485699. I hate paying taxes I really hate paying taxes earlier than I need to the only exception is if I can pay a lower tax free today in order to avoid a higher tax rate later -- everybody this is very Armstrong and it galls me when I see the way that our government waste the money we pay in taxes here's an idea how would you feel about paying taxes on your diary income today and the possible reduced rate in order to avoid paying taxes five years from now at what I suspect could be a much higher tax rate I'm talking about Iraq fiery conversion Roth conversions are not appropriate for everybody but I'm offering a free guide about Roth conversions that is a must read 8559821594. This is a must read guide if you're considering a rock irate conversion 8559821594. Call now 559821594. -- suffered -- securities America incorporated member and SIPC -- advisory services are with -- securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are unaffiliated representatives of securities America do not offer tax advice always seek the advice of a tax professional mortgage rates are still at an all time low and it makes sense to take advantage of these -- -- -- refinancing or buying a new home leader bank is a local bank is one of the largest mortgage lenders in New England with very competitive rates as they're experienced staff about mortgage financing options and get a very competitive -- term fixed rate for your home whether refinancing or buying a new home work with the leader bank calling 776917900. Or -- leader bank dot com leader bank -- over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts in mortgage financing deal with a local bank today and call 8776917900. Or email -- loans at leader bank dot com visit leader banks were all your home buying a refinancing -- 8776917900. That's 8776917908776917. -- 900 or visit leader bank. Dot com member Jesse equal housing lender got a son exit your portfolio that matters. At the information you need to know right here on local and it's getting enough financially getting radio network. Our trivia question was who was the first president to reside in the white house of course the answer. John Adams he's the first person and mark from Falmouth had the incidents take no more of our travel mugs today so congratulations to mark. You know the job market is the funny market to to look at you wheat we. Went through the jobs report uses a week or two ago when I grew both on the whole disappointed by it. But then I read a story like this when chuck labor shortage. Pictures home builders and there is a shortage of trades people have talked about this in the past I thought this might happen is as early as five years ago. But there is it. Demonstrable. Shortage of labor and of of guys that can build homes well. In and what's interesting though is that even though there aren't enough people in that industry right now to really keep up with demand. You certainly have enough men that are really not doing anything right now in order to actually fill those jobs and let me give recent data on this because in the last ten years. One of the biggest ships that we've seen in this state is actually from 2000 to 2012. Okay 2002 and 2012. Women who were in the 25 to 54 age bracket which is really that strips out people in college or people potentially considering retirement. That's 75% of them have been in the workforce throughout that time now okay you go back to 2002 though. That 93%. Of men were in the workforce then. Today it's only 88%. 65%. Of men in that 45 to 54 bracket. Drop out of the work. I have this theory. What's is there. Yeah and it's actually I'm I'm researching right now but it appears the Federal Reserve has been doing research. On. Drug addiction and alcoholism. In the impact on labor participation depth and Beers if it actually bearers consideration. And the the research indicates that. The reason that LPR the labor participation rate young that group of people. Is so low yup is that many of them are drug addicts and alcoholics at a much higher rates today. Then it would have been that fifty years ago. Yeah I mean I don't have access that data think anecdotally it makes sense with what I've seen in terms of you've seen a huge uptick. In terms of prescription drugs heroin and things like that that are really debilitating. And prevent people from going to work oftentimes we talk a lot about functional alcoholics and we know that that can be thing. But there're that many functional heroine addict and it's that's not something that you see it's much more debilitating in a lot of cases and unfortunately we've seen things such as. You know you know heroin prescription drugs become such a big problem in this country in the last ten years that I wouldn't doubt it. If that's something that absolutely. Is playing a factor. Let me give you a couple of stats related to the story Texas builder they're called castle rock communities. They now need 155. Days to complete a house. They used to be able to build a house in a 115. Days rights and they've gone from 115 to 155 and and then there was an analysis that was done by the associated general contractors of America. And they found that the number of jobless workers. With construction experience dropped last month to the lowest September level since 2000. This is a development that the trade group attributes to a dearth of available workers mean naturally important and Debbie you look at that. That's a stat when you considerate. You know because you can get into it like you could go to work as a labor. Without skills and that's where I'm putting these two together and saying okay you've got. Pretty good paying unskilled labor. And and the work is there and then Ike and I come back to the fact that. The labor participation rate among that truck troubled group 2554. Yeah is much lower five points lower than it should be. Just on the male side I gotta tell you I. I can't prove it yet but I am researching this in I'm not gonna give it up until I've I've done my research. But I wouldn't be surprised at all if it's related to drug addiction and maybe it's alcoholism but I think it's probably drug. I think that that some of it when you talk about a 5% drop the Oca. If you're looking at bat population you're talking about essentially that's a group of around eighty million people that those those males in the workforce and so when you're looking at that. 5% drop there you're talking about four of you know almost over around four million people. And I think that addiction is probably a certain part of it obscures what the other the other pieces that are really playing into actually are because. What I find so interesting is that you're not seeing that drop. For women. That right did the participation rate for women is the exact same and and I. I can't believe that men and women are getting addicted at such different rates and so I wonder who what is the difference that is causing Ben to drop out of the workforce while women continue to participate at the same rate dated previously and that's that's something that I think is going to be he really unlocking. Where where we go is a country there because. In order to get back to healthy employment you need whether it's on the male side or on the on the female side. You need those four million people back in the workforce at some point and we know what it cannot handle workforce they're drag. Write to zero wouldn't if they're not on the work for the Republicans as well or here's the use the other option. And this is something that you have to consider is well is there a bigger underground economy that's not being tracked by this are there more people. That are simply off the the roles of employment and not being counted there that are involved in on the unit it is simply do jobs under the table and so forth but again you would expect to see that difference across both men men and women. And you're not seeing that that's. It Tucker if you had a gas. Well let me ask you when you go to Starbucks who you are now ordering your copy in your sandwich on your guy ahead of time. Is there a lot of people doing that can you tell when you walk into this so far no it's still pretty secret which I hope it stays that way because I'm in an hour court now and everybody standing in line still desires of the Wall Street is telling us. It Wall Street Journal did some research on this. On line and her mobile orders represented 20%. Of Starbucks US sales huge mob. He we talked about Cumberland farms yesterday. They've got 45000. Customers using that app for the ten cent discount. Other retailers other food retailers to police the one talking about today but chipotle. Is trying to do the same thing now I think they're gonna have a little bit difficulty with this because as Harry member with a chipotle. You kind of walk through the lines right in your point 21 I guess you do that. Yeah all you do is just have a checkbox for lettuce checkbox for mediums also hot salsa and so forth and personally I would love it because at any time that I've gone to which Poland last year. While the food. But if you try to go anywhere really between like eleven and one. You're waiting death dean twenty minutes I mean you know sometimes longer yeah it's it's a huge line you sometimes seeing lines like forty to fifty people. And they have not chipotle. This is the knock on him. Has not done a good job with their mobile app that you have no at a rating and iTunes rating of two and a half stars switches. That you know if your chipotle you want and need think about you cut out that whole cashier right so. Like you like it Tucker you're satisfied customer of star burst yet. But Starbucks as a stockholder Starbucks unhappy because you no longer have to talk to that twelve dollar an hour cashier yeah exactly right. That you know you don't out I would love I don't know if they gonna do this but what I would love is if they combine this with like a drive through so you don't even need to go win it is the drive through window for picking I don't to listeners of Tripoli have dried out or not they don't know but like. Think about how great that would be you don't even need to go in and like walked you talked to say look here's my order book and you give the order number they just give it to you. Mean honestly national that would be outstanding mcdonalds be the first one to do that yeah at chipotle. Needs to get into this this this is this is where the fast food and fast casual is going. And Starbucks been a leader here I mean look they've done a great job building out their platform I think they're doing innovative things I think they're building that in the direction that most people want to be going. And chipotle I think I take this on at this point I think it makes on a sensible. I would certainly be more inclined to go to a Tripoli where they had I don't I don't anymore is that they hired the same guy yeah pirated Starbucks guy picked to be at the CIO. At Starbucks. So how long does take it to build an eighteen months two years I've been quicker than I but you'll see nine to twelve. I think by the end of next year you'll see it is that that is the knock on chipotle. In my Starbucks started done technologies they're now it's it's much easier to implement it Opel members from the Starbucks team or they'll get. They'll get this thing up in I would say nine to twelve months the long end of the Specter. Gold coal means there's only one bank in all of New England where he can walk into any one of their branches and buy gold coin if you wanna sober when they sell those as well. They also will give you an authenticity. Certificate when you buy a gold coin I think that's very important because. A CEO these ads on television or even hear them on the radio say. I don't think I would give somebody my credit card number and then hope that they may only a gold point. Gold coin that's it it's a big investment gold is trading right now 1165. Announced so I'm not doing that through the mail thank you very much. If you wanna buy gold points in person and in a bank go to leader bank. In you can buy gold pointy by 110 of an ounce gold point you can buy American Eagle gold coins even by Kruger and gold points. At any leader bank branch now if you don't know where their branches are just go to leader bank dot com or call the gonna talk to somebody in person about it. Their vote number is 8776917900. That's 8776917. B 900. I met somebody the other day chuck. And they opened up the leader bank account they threw a 100000 bucks into the leader bank account yet and then what they did was when gold prices dropped they would call leader and say. By visa by me ten points today yet to 101 out and points and then I'll pick them up on Thursday that that's how they are doing the trick is they didn't live right around the corner from leader bank that but they are down in the Boston area. Periodically so they are just pick up their coins when they're in. So you can do that if he'd like to learn more about the only bank where you can buy gold coins either over the phone or in the branch. Go to leader bank dot com or call them told free. 8776917900. That's 877. 6917900. Coming up next we're gonna be joined by Sean O Reilly. From the Motley Fool will be taking a look lift to stocks that we're going to be taking a look at. This is a good opportunity for you to grab your pen and paper you're listening to the financial exchange from the insurer match dot com studios. He worked hard to make your money. This is that children can teach you how to make your money and work through you he's the financial exchange with Barry Armstrong on the financial exchange radio network. I hate paying taxes I really hate paying taxes earlier than I need to the only exception is if I can pay a lower tax rate today in order to avoid a higher tax rate later hi everybody this is very Armstrong and it galls me when I see the way that our government waste the money we pay in taxes here's an idea how would you feel about paying taxes on your fiery income today and he possible reduced rate in order to avoid paying tax is five years from now at what I suspect could be a much higher tax rate I'm talking about a Roth higher rate conversion Roth conversions are not appropriate for everybody but I'm offering a free guide about Roth conversions that is a must read 8559821594. This is a must read guide if you are considering a Roth fiery conversion 8559821594. Call now 559821594. Securities offered to securities America incorporated member and as I can see an advisory services are for your securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities American companies are unaffiliated representatives of securities America do not offer tax advice always seek the advice of a tax professional. Did you know that solar system on your roof is cheaper than continuing to buy power from the utility Boston Sorkin show you how to unlock the financial power in your home or business by harnessing the natural power of the sun Boston solar is the number one rated residential solar company in Massachusetts and a leader in providing a affordable energy solutions to homeowners throughout New England with constantly rising electric rates Boston solar empower you to take control of your utility bills and increase your energy independence call 8559799446. Today to receive a free solar analysis of your home and learn how you can start generating positive cash flow now that 8559799446. Boston solar can work with youth to maximize solar incentive income and all federal and state tax credit Boston solar Smart sustainable saving you money call Boston sort today for your free solar analysis 8559799446. That number again is 8559799446. Perry are strong here and we're joined by G-8 to ease the vice president and leader bank and we're talking about Small Business Administration holds this is a very important topic because of lending season this year you wanna be ready you want to expand your business leader bank has capital to lend out. And we're gonna talk about what they're doing and what they're making available to consumers paid OJ. Great very thanks for having me absolutely SBA loans and small business landing is certainly a topic. About discussion right now right what can use the money for you can use really for any business mean dad will help your business expand new trucks improve new trucks view about kitchen equipment remodeling re modeling you know expanding into new office computers computers servers whenever may be Kenya uses the line of credit sure -- fourth and those rainy day fighting they could do lack credit yeah absolutely so you know we find a lot of professional services Berg's. They won't have a line of credit because maybe schools calorie went there sure. Manage cash flow payroll etc. so. Well we're offering these a special right now at three point 99%. Fixed rate for four years there's no closing costs with loans up to 150000. Dollars could you minimum credit score of 700 from an application processor is a very quake we will give you a response within ten days from complete debt outstanding and we've had a lot of success with it and most importantly we've helped a lot of small businesses and way more people and grow their business. Good deal. Folks if you're interested leader bank has a SBA term loan and it has an interest rate on three point 99% its fixed for four years and it's a four year amber to station the minimum credit score is 700 in order to call by call leader bank at 8776917. B 900 that's 8776917900. You can go to their website which is leader bank dot com but it's easier just call and talk to a human being 8776917900. Word from Dario. Lol I'm sorry Jean Armstrong. Is the financial exchange radio network and. Earlier we are talking about addiction issues and Gary impact on the labor participation rate. For workers between 25 and 54 I about text message from 617 that I am compelled to read. As a building contractor who's employed hundreds of people in the Greater Boston area over the last 25 years. I can assure you that 13 of those involved in construction have addiction or abuse issues. Heroin I'm sad to say. That many addicts are holding down jobs. Some quite well for years until they physically implode and chuck I am speculating I have no evidence of this but I and dedicated to doing the research. I think what we're going to learn based on the research that we conduct is that addiction issues are why you have such a low level participation. A young among young men ages 25 to 54. And we'll find out. You know we're gonna have to do a little bit more research there we're gonna take gay quick segue now over. To what to do some stock talking we're joined today by show auto Riley from the Motley Fool. And Sean appreciate you coming on us. Good morning Boston in good fairy morning no apparent shock. Very good to have beyond John and couple different stocks in the energy sector. Place that's been beaten up really pretty strongly over the last had a year to wait and look I'm just trying to make everyone feel good on a Tuesday here but. Well what can you tell us about first and foremost Kinder Morgan is a company that had made a major acquisition of one of there. Companies last year buying up there limited partnership. What can you tell us about this company and where they're go. Well there was part believer not of the Enron higher. And round about 1999 seat belt and they do you know kind of part of wave of government warned that in trading in cooking the books and Tony energy infrastructure. And applicant a more. Com they are one of the larger energy infrastructure company that you got sodium natural gas pipeline the do pipeline. Herbal product pipeline. In the corporate headquarters cafeteria bought them. Com it's back to me yeah I was up early BO com but that Betty. It but it's been beaten up because it technically tied oil gas it is it straight right now lot. They you know at that kind of like the oral monopoly puppet that situation a move that stuff across the country they make their profit and not that it did great that. We'll talk to me a little bit about that because well when I'm sitting here looking at it today the dividend yield on it is currently about 6%. How much of that is tied to the price of oil vs simply how much oil moving through there. Hero we've not yet they don't make a barker superb barrel oil moved the their pipeline and they make about whether oil of that 4800. So White Sox sold off so badly. Wall Street selling. The news that Dolan and well I. Our delicate believe that you know you gotta particularly high at 45 of thirty new market cap of seventy billion you'll experts that. Even we have. You know the dividend payment on eaten up you know get her to record everything. And they're most recently completed quarter second quarter of this year they have free cash flow 200 million dollars or. The dividend. I hate it that. Keep the Wall Street drugs debut album about water. When you look at this company and let let's talk about this because obviously energy prices have remained low so far this year there's not really a whole lot of optimism they're going to be going up next year. Is this a capital appreciation play over the next year and a half or is this more collected dividend while things potter along. This and collect at 6% yield look at real bite in the in a 3% treasury world. Am. You know what better to write them get back up there won't realize about Wall Street realizes. Aid they actually do make money and or at the height of the property well not making a lot money. Yeah art and don't get back up. Let's move on that talk about a different side of the energy industry and the company National Oilwell Varco. This is a much more involved in the exploration and production is that correct. It is they need based league long very shortly design manufacture and sell equipment and components used Bible and app. Exploration and production companies do. You bit weak finish well in and get a lot. I felt scary right now I'm. Only the or because companies are cutting you know hundreds and hundreds of billions of dollars. Other urgent but a Purdue opened you know down the palm. City that. Well that that app down here important work however com ID. They are. Littered the bat in the like they everybody knows that they promote it technology. In this kind of be effective. Moving out ripple over downturn. On the 119 billion dollar backlog for the market segment that it 7% of the revenue last year it was rigged system. And it got a nine billion dollar backlog ripped down a little bit but. Everybody knows that the app and and it downturn eagle began at bat you mean. Is this the type the company I'm looking at him today market caps about fifteen billion only got just about thirty seconds it is the type of company that could be an acquisition candidate. It would not put. Surprised me we don't see a lot of acquisitions added they are the dominant person that if you were to make an activist and you're like Halliburton it would not be surprised. There are good we'll Sean appreciate you coming on here and I enjoy the rest today all right. Absolutely Sean O'Reilly from Motley Fool kickers on those if you wanna look Mathieu sells for Kinder Morgan it is KM hi. Board National Oilwell Varco it is and OV. They you know at some point right yet the call the bottom for energy prices near the difficulty is a lot of people lost a lot of money in those stocks. During the last fourteen months. But the other thing you got to remember is that the bottom may also be the top for awhile so you may just be potter along this range for the foreseeable future your pay and paid 6% the putter though. Better expenses in cash right now and that's the perspective on a lot of people yeah aren't any say okay. At a early Carol my share price does it to a certain degree or go and and look you and I both know all so. First oil may not go out tomorrow may not go up next week next year it's going it's costing it forty for the rest of our lives we know that and I. I hope people are taken that into consideration when they're out there buying a car. They wanna thank you for tuning in to this hour of the financial exchange. You can like us on FaceBook where the financial exchange on FaceBook and we are producing the show from our insurer match dot com studios. If you've been thinking about starting the estate planning process think about this what would you do if you spend money working with an attorney to put your estate plan in place only to find out there when it comes time to go into the nursing home your trust wasn't drafted properly. It takes five years to protect your assets from the nursing home and you need to make sure that you aren't wasting your time in your money on legal documents that don't work Todd let's keep from the law firm of Cushing and Dolan has written a brand new article called drafting tips for your Medicaid income trust it contains the language that must be included in your trust and the language that absolutely must not be there Como for your free copy and give your own trust that check out. At 8668485699. Pushing him Dolan has been helping families protect their assets were more than thirty years let their experts help your family 8668485699866848569. Noting that number again is 8668485699. Mortgage rates are still within. All time low and make sense to take advantage of these rates -- -- refinancing or buying a new moment leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rates ask they're experienced staff about mortgage financing options and get a very competitive low term fixed rate for your home whether refinancing or buying a new home work with leader bank calling 776917900. Or visit leader bench dot com leader banks went over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts in mortgage financing deal with a local bank today and call 8776917900. Or email us at loans at leader bank dot com visit leader banks for all your home buying -- refinancing needs 8776917. B 900 that's 8776917908776917900. Or visit leader banks dot com member of Jesse equal housing lender. Did you know that solar system on your roof is cheaper than continuing to buy power from the utility Boston Sorkin show you how to unlock the financial power in your home or business by harnessing the natural power of the sun Boston solar is the number one rated residential solar company in Massachusetts and a leader in providing. Affordable energy solutions to homeowners throughout New England with constantly rising electric rates Boston solar empower you to take control of your utility bills and increase your energy independence call 8559799446. Today to receive a free solar analysis of your home and learn how you can start generating positive cash flow now that 8559799446. Boston solar can work with you to maximize solar incentive income and all federal and state tax credits Boston solar Smart sustainable saving you money call Boston solar today for your free solar analysis 8559799. Before proceeding for rate of return on your savings account my guesses it's not very much. Leader bank has a new innovative program called so Obama Xoom or rewards account in Jake to a leak vice president of leader bank is here to tell us all about it. So this is a pride we're very excited about these calls that reward to get it checked he accounted companion savings account. It's really simple as long as you qualify by doing three behaviors you get three benefits the primary benefit is you get a savings rate of 2.0 5%. Your first 50000 dollars in addition to get all your ATM fees that you're charged other things even if you're in Hawaii exactly reimbursed and finally you get 1% cash back on using your debit card on visa credit purchases so there's a lot of benefits into qualifies pretty simple he needs to bring you statements so save a little money on postage and paper. Have direct deposit of at least 500 dollars a month okay and do a debit transactions per month while. So essentially always use it like a real account you can qualify in the rewards are outstanding speed and a lot of success with that in a lot of happy customers are right it. He's two point 05%. Annual percentage yield on balances up to 50000 dollars. The phone number to learn more about the zoo but rewards account is 8776917900. And as a matter of fact if you go to leader bank dot com they have a full description on how this program works as a tiny little seeker can openly count on line. 8776917. B 900 earned two point 05%. Annual percentage yield. All in your resume book rewards account available exclusively. From leader bank 8776917900. Leader bank dot com or call them all free 8776917900. Hi I'm Joan Lunden and if you're worried about your parent Carol Loveland living alone like I was. And you are reliable senior care information. And call a place for mom. The nation's largest senior living referral service you'll get free information on assisted living and alzheimer's care nursing homes. Even important financial information. They had obviously researched every place not just given me names. They found me a place for which she could afford and it was magnificent. We're now very confident that she's safe and they just helped every scrap of who. Can't thank them. So if you're struggling to. Find reliable senior living information call plays for mom. This is a free service and you can trust them to help you. If you are struggling to find reliable senior living information for your mom or dad didn't call or go online to get the free help you need during this turbulent time call now pay 804677530. 804677530. Pat Boone here was the word about bank safety you think your money in the bank is safe. Don't own bank Garnet a generation ago bank account felt secure and they paid interest. This encourage the virtue of thrift savings but today. Bank accounts paid virtually nothing. And that shifted from lower risk to high risk. For example did you know your money deposited in most US banks could be subject to limited withdrawal. And even confiscated by existing executive orders who voted him best. And that's just the first of nineteen risks explained in a new 32 page white paper entitled don't bank on it. Still think you're bank deposits Ers they. Yet this vital new white paper now. Call toll free 8051960. To 71 that's 805196271. Hi this is very Armstrong in if you own rental property you're gonna wanna hear about this exclusive program offered by leader bank it's called Z rent and it's designed specifically to help landlords received and deposit their rent checks electronically as opposed to having to wait for the mail call leader bank right now if you're interested in Z rent the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and we'll help you avoid the hassle of waiting to get it checked. Many landlords are suggesting that tenants sign up for zero and upon the execution of their lease and why wouldn't you wanna do that once it's set up you never have to make another change during the lease period that he renters a free service if you have an account with leader bank and if not it will simply cost too small monthly fee call leader bank right now at 8776917900. That's 8776917900. Or go to zero red dot com for more information member FDIC. The financial exchange is brought to you by Hartford funds where they believe in human centric investing because no matter how far technology advances investors will always beat humans first. Yeah. And this is the financial exchange we've Barry Armstrong. From Wall Street and third street stay on top of breaking business news and learn how to manage your money to help you towards a more secure future and now broadcasting live from the insurer mentions I've come studios it's the financial exchange with your host. Valerie Armstrong. Today. One of those days sharp when the trend is your friend. Market up across the border in Italian at 5:30 this morning at 6:30 this morning at 7:30 this morning mark it was down across the board. Market has moved up over the open today moving up now. That 26 points on the doubt three points on the S&P 1569. On the NASDAQ. Treasuries across the board on longer term treasuries are selling off. Shorter term treasury still seeing some buying activity suggesting that the Fed may be raising rates later than expected pretty is bigger party. Is that what's happening to you us unorthodox but it I just think the US I mean I I just I have to attribute this money flown into the United States acted bureau. I I think that's definitely a portion of it I think when you look at and pretty much put just about every other market overnight. The one that I exceed its in positive territory as Shanghai which addressed about spores second row. Everything else. Pretty much down overnight so I think that in order to sustain its you'd like did you know you good to see the mark this market continue to movement that would really suggest something different going on. See some earnings we got to see simmering Jimmie Johnson & Johnson reportedly beat. But in grow and read you know that's the thing that's the problem for five years and that's been. We have seen some companies last five years continue to miss that but they can't beat edit our original lie in pleaser at pac employees wanna get paid. You know well I think there's some truth workers are fine I told you guys that workers are gonna start to get paid in the last half of this year. And they are we now we know we didn't see last month last on the wage growth numbers it is knows Aaron is an open I think I just think it's different I think the economy has changed because so many people that are working independently. Were you would call gig economy yeah it this I don't know a lot of Cologne. And and keep my dad is not measured Tucker makes it more money playing draft things that he does work me and the mind then. If that's your fault that yes. Everybody got these really good at drafting of death when a lessening of that should make us I was in a privately got a fifteenth time in 96 bucks. Profit correct yet Tucker was in coming to work today. Think some guys like Don well I've been have a horrible years I borrow money go toward their money why and I hit ten and ultimately. House poker game yes it was ten dollars ahead so you walk away with their first place and 962 place for. On Syria want in all last Landler beyond bells touchdowns immigrants and thank you. They news out of you'll be happy to hear this Tucker that pilgrim nuclear plant is gonna close. Already happening. Live down kind of 600 jobs now excellent job a lot of money lot of jobs ten million dollars. Out of local economy. I mean I know somebody who works for them and they're going to be effected by this it's not gonna close right away they're gonna closed down by 2019 illiterate. Yet Jimmy keep in mind in nuclear power plant doesn't just closed in a weaker among the takes a while to actually shut it down make sure that everything is done by the book. But this does appear that this 43 year old power plant is going to be pretty much near the end of its life right now. Are they required to disassembled that I wonder like is the 72 sabathia. Yet you look at it yeah I was seven the yes 72 was built. In terms of you mean just the overall plant around them in the core obviously they're gonna take out and they're gonna dispose no I want to. They like if they tear down the physical plant and what do they do with the eternity in to a park I guess I just wonder what they. The with their obligation is it's owned by Entergy right. Yeah I'm not mean it opened want to live on and you via nuclear power plant you know I mean obviously they can plant corn. I don't know if it can play quarterback makes permitted to be yet the Plymouth marijuana for Selena is by then marijuana will be legalized in Massachusetts a gritty always straighten it glows in the dark. There's another old nuke in in Connecticut near where he I spent some time on the weekends in Waterford Connecticut. There's one called millstone it's about the same age and wonder if they're gonna close there's also the my girlfriend's family they have a place up in the near the one out there the the big nuke up there as well he did they announce they're closing down that when I know they extended the operating license on actually. And you they just extended the Plymouth one at a biggie granted Plymouth and of the twenty years and other senior analyst. If it can't go in twenty years there's a lot of skepticism. When they granted plummet and of the twenty year license this is within the last 24 months a number of people and yet. No this one was the its oats the Seabrook nuclear power plant and they applied to have their license extended. And pretty much they extended the license. And it's it it's there's there's major issues the plant to showing all kinds of degradation in concrete and everything to their continuing operated them and they haven't really figured out any type of long term solution at this point so every time I go there and I kind of look randomly. Not quite. Perfect anymore it has no it's it's it's a nerve wracking being right next to a nuclear power plant that has been you've been holed. Is not structurally sound yeah we've just been told all's well. But Tennessee now this they say look there's like this concretely degrading around the plant there's like all Qaeda and actions going on yeah. You see as old and in their built in the seventies and with old technology Edison this one know this war was knew this was 1990. And it has problems. This was 1990. All right. Yeah big news here for those of you who are buying Christmas presents for. Teenagers and college students electric skateboards. Have been legalized in California. Now these aren't the the hover boards and back to the future unfortunately because those would be. Amazing to see but yet keep in mind that this was this was a band that had dated back to 1977. And it would lover because they had once or gas power they wanted to keep gas powered. Think about how nuts you have to being California to say no we don't want gas powered skateboard is going to artistry. But now they're gonna legalize electric skateboards. This is actually like. If you're buying a present. For a college kid or high school kid this would be good Christmas present the place of fun games feel like a big Truckee could put some fun games about it I'm in the I don't know I looked that up how much is electric gate for cost 800 bucks. 170. Dollar that's our. You buy when a target for 170 about what kind of range to get on the the A it's a you know what I almost want one of these. You try is this your midlife crisis it might be I might be man play better than a Ferrari in a exactly down 170 dollars you'd probably hurt yourself. I would definitely there or in the gotta hurt yourself playing tennis against an eighty year old man chef chef option that's the secret exposed the talent but you know. On important message here. On top on old grab a pencil. Paper. Debt multiyear guaranteed annuity. You can get a three year guaranteed annuity at one point 95%. Or five year guaranteed annuity at 2.5 5%. Let's see the art tax deferred writes enough to pay any taxes on the interest that you earned. In your earning more interest than what you probably earning now I don't know if he had any accounts that are paying more than one point 95%. You have to have at least 101000 dollars in order to invest in a multiyear guaranteed annuity. Again the interest rate for a three year annuity is one point 95% interest rate for a five year duty is to. Point 55%. For more office call for more information call my office at 1803934001. Net. 803934001. Check your earnings for interest now. If you have three year money it's paying one point 95% if you have five year money. If they're paying you 2.5 5% 1803934001. Their operators standing by right now. To help you open an account. 101000 dollars is the minimum investment required 80393. 4001. All right here's your second trivia question of the day. Prior to Washington DC which city served as the nation's capital. If you know the answer to that question text us 68680. Is our text number first listener with the correct answer wins a prize. We prior to Washington DC which city served as the nation's capital again our text number is 68680. Up next we're gonna be joined by Hiawatha bray from the Boston Globe. Hiawatha is. Now he's commiserate and as to why we can't seem to keep a big tech company. In Massachusetts. It will be joined by Hiawatha bray from the Boston Globe in our next segment you're listening to the financial exchange from the insurer match dot com studios. Financial news business news in what it means he knew all right here on the financial exchange with Barry are stronger financially. Radio network. Low interest rates are great for people who are borrowing money but they can create a real hardship for savers in today's low interest rate environment I consider cash to be really easy money because it isn't earning much of anything for you this is very Armstrong and I have good news for you -- should probably grab a pencil and paper we have found a highly rated insurance company that is offering a three year deferred annuity with a -- annual interest rate of one point 95%. This single premium deferred annuity. We'll pay you one point 95%. Per year. And then at the end of three years you are free to take the money out without any surrender charges this is the best read I've been able to find to learn more about the three year fixed annuity veterans one point 95% call my office at 1803934001. That's 803934001. Principal and interest are guaranteed as long as you hold your contract troubling for the guarantee period guarantees are backed by the claims paying ability of the insurance company. Did you know that solar system on your roof is among the most meaningful investments you can make in your home Boston -- can show you how to unlock the financial power in your home or business by harnessing the natural power of the sun Austin solar is the number one rated residential solar company in Massachusetts and a leader in providing affordable energy solutions to homeowners throughout New England with constantly rising electric rates Boston's or empowers you to take control of your utility bills and increase your energy independence call 8559799446. Today to receive a free solar analysis of your home and learn how you can start generating positive cash flow now that's 8559799446. Boston solar can work with you to maximize solar incentive income and all federal and state tax credits Boston solar Smart sustainable saving you money call Boston solar today for your free solar analysis 8559799446. That number 8559799446. Mortgage rates are still at an all time low makes sense to take advantage of these great with the your refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rate ask their experience staff about mortgage financing options and get a very competitive low term fixed rate for your home whether refinancing or buying a new home work with leader bank. Calling 776917900. Or visit leader bank does come leader bank went over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts and mortgage financing deal with the local bank today and call 8776917900. Or email Ed loans at leader bank dot com visit leader thanks for all your home buying and refinancing needs 8776917. B 900 that's 8776917. B 908776917900. Or visible leader bank dot com member of the equal housing lender. If you've been thinking about starting estate planning process think about this what would you do if you spend money working with an attorney to put your estate plan in place only to find out there when it comes time to go into the nursing home your trust wasn't drafted properly and it takes five years to protect your lessons from the nursing home and you need to make sure that you aren't wasting your time in your money on legal documents that don't work Todd let's keep from the law firm of Cushing and Dolan has written a brand new article called drafting tips for your Medicaid income trust it contains the language that must be included in your trust and the language that absolutely must not be there Como for your free copy and give your own trust that check up at 8668485699. Cushing in Dolan has been helping families protect their assets were more than thirty years let their experts help your family 8668485699866848569. Noting that number again is 8668485699. The and do you want to learn how they always work together. Financially and on the financial exchange radio network. Philadelphia was the capital of the United States prior to Washington DC chalks up. And the winner and that was heal from long meadow take over teacher today. You know I read the Boston Globe today and I ran Hiawatha raise article regarding Ian C. And I felt like I was taking a walk down memory lane Hiawatha welcome to the two exchange aria. Yeah you you brought up companies that I had thought and it just re recites them digital equipment. Dated general Wang labs digital equipment was the second largest employer in the world behind idea back in the day hearing. Well I think you mean second largest computer company get yeah yeah they work at it it's amazing how far. Frankly we followed it and it is pretty yeah why is. Everybody knows there's the question everybody wrote it because a lot of younger people may not know the story. Because it's a fascinating tale of a failure to understand the significance of new technology. What happened of course was in the 1980 he began to see the rise of the personal computer digital and wiring and all these other guys this whole. Already companies and deliberate often. It there technology formed a mini computer it was a reaction to the BI BM mainframes and built an entire room became public computers or about the size or refrigerator. And could perform really high quality computing really well and we'll much cheaper and they were. Successful in the sixties the 70s80s. Along come the personal computer. And famously. Founder of digital equipment and it can also lead. Nobody really want personal computers there's a limit it and didn't really clinic after. It was an astonishing moment when this massive new technology came along and most of the big companies in the Boston area rug. Meanwhile on the West Coast where a lot of this was originated from and we were on the and they just jumped all of companies like Intel making the chips. Microsoft Bill Gates dropped are we didn't Albuquerque or this software company. Which eventually end up in Seattle and they make billions off of it and here we are stuck in what becomes a. The logical backwater and company's high. Right why is that Iowa and why are new englanders in yankees. So resistant to this new technology is your right you think about the company and Dell Dell was started in a dorm room at Harvard. Absolutely and that's fascinating thing but the very fact. What they're doing now moving well in the opposite direction so that Michael Dell is that guy who don't get it realizes that the world has changed. He starts at a time when the personal computer is this. Beginning of leaders really hugely profitable but at the end. The date back many years now the personal computer has become a generic commodity there's just not much but alienated. Until he completely reinventing the company to become a major enterprise computing and server that company. Or medium to large businesses and EMC is a critical part of it. But it choking get that it is a world changing we can't keep doing things the way we used to. Or an area companies they didn't get it back in the eighties and nineties it was well into the nineties and the company just started to stop because they didn't get. And in the meantime even now we don't see enough investment in the kinds of companies. That the network that next wave the Internet company I mean the classic story of FaceBook and headed here at Harvard University. But they couldn't get funding in this area. But most of Silicon Valley. And I think we should be their headquarters are based but we're not. Right right we have the we have the talent we have that you know you think about the education capital of the world I've often said this but is there any city. In the world that has better educational institutions in the city. Quote. Local car that the number one X. Export the Boston area of the brain. We export brains around what were brilliant. And and and the extent that that's a good day. But it's an and by the way it has to be emphasized that we are not lagging an every go to look at what's going on in I don't really and health sciences. We're dominated the world of that field proved that fact and it happened here. But that's an area of investment where it seemed that local investors and the government all get. And are pushing match. Very hard whereas in the case of a digital they just let it get away and it's not coming back. I mean we're never again going to be competitive so what about that is not happening unfortunately. Right back in the eighties one could argue that we were. Oh yeah well. It was no I don't think we could ever completely. Beaten them out the complete at a critical mass there. And I don't think we could ever completely but we could've been like say Austin, Texas we're dealt we couldn't add two or three you least substantial major companies here. Another one that recently or about Michael. Well the early Internet portal could have been like there's no reason why that couldn't happen but it didn't. And we could and woke of one or two major Internet companies are two major computer company could happen it has been. Now you're right you're used to it SAU Iowa though when I read your articles like locking down memory lane. Yeah thank you very much we appreciate your time. Oh great that's Hiawatha break from the Boston Globe and you know I think a lot. People are still sitting duties EU you pointed out yesterday chocolate EMC has 60000. Employees globally at 101000. Just in Massachusetts. Yet some major local employer and so I think that when you look at this. And look you look at delta and they're not allowed to announce that they're having any lay offs or anything right now just it would have some implications as far as dollar and everybody it's being pointed out you know what's coming with this type of leveraged buy and it's it's unfortunate to see. Just because you know that means that a lot of qualified a lot of Smart people are going to be seeing job loss and and that the one fortunate thing is that. At least this is an industry that is showing growth in other areas and those types of people though. You OK I T that that the qualifications they're they're gonna have no trouble moving into other jobs it's it's. This is not like manufacturing where you're just offshoring it completely. Is a case where look you'll bought a Smart people who may be able to say look we can join some of these other startups around Boston eat you do have. Bosses have been good at keeping big tech companies but there is a buried and I get a vaccine. In Kendall Square right now and you look at some of the companies coming out there and start to get some pretty interesting things that are happening. Via a lot of people in and we're getting text messages today in emails yesterday. Regarding EMC employees and their stock options. One could argue. That the VMware. Component to this deal is undervalued. Well you could end and this is interesting when you look at how Jackie you're gonna need structure in I mean it's. EMC. Stockholders are gonna pay. A fair bit attacks. Well it and here's what's interesting about this is that a lot of people were hoping that VMware. Was going to be outright acquired in this deal instead of simply having yhency state taken over. By dale and so when you look at this what's gonna happen as the people that are seeing that that stake acquired. Are essentially going to end up with what's called tracking stock now if -- a VMware shareholder here's what's happened to you in the last two days since this was announced stock is gone from 78 dollars a share down under the around the 72 right now actually today down another 3% down below 71 and so you look at this and I think a lot of people associated with VMware probably sitting there saying. Our stock was trading at ninety dollars a share back into it in July of this year. What are what are we doing lake and in an avenue of recourse that's the worst part about it you know them as a company EMC owns 80% of the company exactly who they're sitting there saying well look the for the rest of us who were just holding VMware stock we can't do anything actually and it and so they're sitting there saying. Well now we've seen a 25% loss in market cap over the last. Yeah a couple months we're not really seen anything that we can get out of this deal it doesn't necessarily opened up a ton of new opportunities for us. Why are we due up and. Pretty loudly in May not be the greatest thing for B and our Carol knows if you really could be atop a tough deal for them to small and the market is telling us they're not entirely confident this deal as an adult. Because EMC shares are trading at 2797. Shared the bid was 33000. I think that's the total bid when you factor in some of the tracking stock and so were so that's why I think you're actually seeing it pretty fairly represented here. Because keep in mind what you're going to receive UB 2405. In cash per share yup and then some of that VMware tracking stock it's really filtered into this that's how you get to that total share. Here's a trivia question for you. During which war was the White House set on fire by British soldiers. We already learned that the began construction on the White House in the year 18100 in that John Adams was the first president to live in the White House. But during which war was the White House set on fire. By British soldiers are text number is 68680. Should you happen to note the correct answer to that question. First listener with the correct answer will win a prize. Our text number 686 city during which war was the White House and on fire by British soldiers. You're listening to the financial exchange from the insurer match dot com studios when we come back. We'll be taking a look at oil prices and the UAW health care trust. You've got Barry Armstrong stuff financial exchange. From the financial exchange radio network. Mortgage rates are still at an all time low makes sense to take advantage of these rates when you're refinancing or buying in new moment leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rates ask they're experienced staff about mortgage financing options and get a very competitive low term fixed rate for your home whether refinancing or buying a new home work with -- leader bank calling 776917900. Or visit leader bank dot com leader bank went over one billion dollars last year to homeowners in the Commonwealth of Massachusetts there's a true experts in mortgage finance deal with a local bank today and call 8776917900. Or email -- loans as a leader bank dot com visit leader thanks for all your home buying a refinancing needs 8776917. B 900 that's 8776917908776917900. Or visit leader bank dot com member -- -- -- equal housing lender. Our our strong here and I'm joined today by estate planning attorney Todd let's be. From the law firm Cushing and old with your legal exchange quick tip of the day product got a tie the average person that I talked to anyway does not know whether their trust documents are right or wrong. They need to rely on an attorney when you're looking what if one of our listeners is looking for an estate planning attorney to do advance planning. What should they look for in terms of education and the structure. You know and and that's really great question because we're talking about drafting these documents and making sure their right then where do you begin you begin by picking the lawyer that you know can do this so it's not always easy but let me give you like four bullets at the you can look for they should have an oil oil and then tax that's a masters and legal letters and taxation you'll see that right on the part of their law degree. Right on top of that law degree an annual fine that folks right on their cart you should always ask for a flat fee or ask how much is gonna cost and it better be a flat fees right not as otherwise they can just run up the clock run up the meter and boy can cost an awful lot of money you leave they're more worried about what cost and otherwise and you and you were very got questions your your freaked out policy gee what does this cap via what does this. Mean yeah yeah exactly exactly. And an hour also asked them for how often do you much of your time do you spend in this field are in the answer folks should be 100%. Of the time. This is all they should do. And lastly make sure when you leave the explanation you got was clear you don't leave walking out of there wondering more about what you know more confusing when you came. That's the deal. Good advice make sure they are an expert make sure it's all they do estate planning called Cushing handle and now 8668485699. There are offering a new guide that will provide you with the drafting tips for your Medicaid income trust. 8668485699. Is the number to dial. That's porphyry. 8668485699. Low interest rates are great for people who were borrowing money but they can create a real hardship for savers in today's low interest rate environment I consider cash to be really easy money because it isn't earning much of anything for you this is very Armstrong and I have good news for you to you should probably grab a pencil and paper we have found a highly rated insurance company that is offering a three year deferred annuity with an annual interest rate of one point 95%. This single premium deferred annuity. We'll pay you one point 95%. Per year. And then at the end a three years you are free to take the money out without any surrender charges this is the best read I've been able to find to learn more about the three year fixed annuity that earns one point 95% call my office at 1803934001. That's 803934001. Principal and interest guaranteed as long as you hold your contract troubling to the guarantee period guarantees are backed by the claims paying ability of the insurance company. Hi this is very Armstrong and if you own rental property you're gonna wanna hear about this inclusive program offered by leader bank it's called -- rent and it's designed specifically to help landlords receipt and deposit their rent checks electronically as opposed to having to wait for the mail call leader bank right now if you're interested in -- -- the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and will help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for zero and upon the execution of their -- and why wouldn't you wanna do that once it's set up you never have to make another change during the lease period that he -- -- -- free service if you have an account with -- bank and if not it will simply cost too small monthly -- call leader bank right now at 87769178900. That's 8776917900. Or go to -- red dot com for more information member FDIC. They knew the trouble reading all those financial publications. And for the financially. On the plane mentioned that your usual radio network. Well it was the war of 1812. Where the British soldiers burned the White House to the ground. And we had quit a few answers there but this first one and was actually keep from north Springfield Vermont taking hold a T shirt today. We've seen fluctuations in the price of oil in the past actually today chuck we started off the show and it was at 46 dollars a barrel yet today it's a sport now it's at 48. Dollars a barrel just a short period of time later. So it's gone from 46 to 48 in in an hour less than an hour. The IAEA the International Energy Agency sees the oil market remaining over supplied. Through the end of 2016. That would indicate that oil prices should stay low. For another her feet. Dean months yet does he got demand still increasing on a worldwide scale by about one point two million barrels a day next year. That's down from their earlier prediction of about while one point four million barrels per day so. I think when you look at this it continues to make the case that the demand is simply not going to be. What people expected and as a result look we've had a ton drop in the sky on we have an oversupply and their date there is a absolutely problem there. And it's largely due to demand should demand is not growing as quickly as projected up if we're getting more oil than we thought is a demand issue. And that is something that does not appear to be going away any time soon and that's part of the reason why I say look. This kind of you know this this kind of a cap on oil prices just because we have this demand problem where it's not grown as quickly as people expected. You know if you own a business one of your major expense items is what you're paying for insurance think about all the insurance is that you buy you buy health insurance for your employees. You by dental insurance for your employees you buy workers' compensation insurance to pay into the state and unemployment insurance fund. You've got insurance on all your cars and trucks got insurance on your office space and he just the list goes on and on. Yeah when was the last time. That you as the CEO of your business took a long hard look. At your pain for all those insurance coverages. I went through this exercise. And we saved thousands of dollars by calling insure a match to get information about how we can better manage. Our insurance costs that's right not hundreds of dollars. Thousands of dollars were saved my company by calling insurance in short match. You can call them as well their phone number is 8773245024. I would like to ask you this question. What is your total expenditure on insurance is my guess is it's probably your number two or three. Item write your salaries are probably the highest expense and they have. Then it might be rent but right after rent it's probably insurance and it might be insurance before rent Z two or three would be my guest. Call insure a match to get a better handle on you what you're paying for all your different insurance is out there. 877324502. For their mind churns company they can be your insurance companies well 877. 3245024. Is your number to dial. The UAW. Health care trust has a twenty billion dollar shortfall. And chalk it this is unlike. The state. Trust funds that are running out of money it's unlike the Social Security disability trust fund. This is running out of money because this is a private union trust fund. I don't know how they recover from this. Well I I think it's pretty easy for them to recover you know in terms of if you if you look at this. The the trust fund is still 74% on earth so it still funded at a pretty high level. And that's well within the margin that if you have decent performance you can easily make that up simply because if your performance exceeds the discount rate. You close that gap pretty quickly and that's that's what happened when you're hasn't. Well if it doesn't it if what if it does everything falls apart but not the Nazis pension plans though while in the problems I have is that they've got a declining workforce. Not the problem they have is that they get poor performance that now and and that's just like any doubt you're any doubt years and as he pension plans become more underfunded because it's not performing. In accordance with the 68%. That most men typically want to receive so if you have a year like this where see you're not concerned about this not at all. Notes at 74% funded isn't bad at all is keep mind this planned before this year. Was 93% fund it gets bad performance and some additional liabilities this year this is I don't think this is a big deal at all. There's no anybody looking for work Tucker in your friends look at her job possibly. Peers said he a shortage of forensic pathologists. I don't think there aren't perfect test though that they don't wanna do I don't think south of new doc straight game these are guys that do I top cities and neither since a shortage of them particularly. In rural areas but it's not a surprise but there's a short. And Tucker you may say they're not interested but let me tell you. The average medical examiner makes a 185000. Dollars a year can be average pathologist. Makes about 335000. A year from so I think you might have more friends who are interested I mean emotionally he's drafting is all I. And they don't need it but. It's it's not a bad gig to get into the big ticket guys take the jobs well that's the problem that's the problem is when you look at it. And first of all there aren't many of these jobs anyway okay inside the US there's only about 500 practicing board certified forensic pathologists at this is not. One of those jobs that you list as the fastest growing job in America there are tens of thousands of these jobs available. A very narrow field. OK but the problem is they do once they do want more people going into this field and they can't get the right they can't they don't pay enough. You know pain they pay pretty well. Not enough evidently it went 335000. Isn't enough the problem is they're up against these other special you look at you know ways of what some of the surge that pulled out of there in big area. Opulence were. Performing autopsy hole the odd. But it's cause and they probably can buy the insurance claims are being denied insurance claims process. I mean it's it's it's not a small problem but it it comes down to as always right isn't always about the money. Pay more money usually as you get more dot usually is. Can't make the working more exciting. Do you remember the patriots pre Tom Brady the old army and a pure physics how do you use it well I don't remember the pre drew bullets so I don't either I don't remember when they re use they were really I don't know says there are complete laughingstock. Back in the when I moved here and moved to Boston in 1990 prior to that as the jets and that was not easy. When the time being it still isn't. It Dan was terrible. But when I moved here in 1998 were terrible. And they were terrible for quite awhile until. Parcells came in in Bledsoe and and then weave and Bob Kraft is the one looking for and you don't want you to Andrea idol I believe I believe Bob Kraft is the single reason why that franchise turned round you know I believe he got lucky and somebody drafted Tom Brady. That that's the single reason that the franchise turned around but. Here's how to tell if your NFL team is out of this is in today's Wall Street Journal without those cute if you're a dolphins fan. Your NFL team is out of the deaths under a year if if you wake up in Sunday mornings now feel worse than Monday morning's. You're NFL team is out of it. If your fantasy team now is the second most depressing team in your life. If you think you're here you're probably an idea. You know of any team that has a bad and it fell to make me think about it. There's a lot of teams with perfect records of. The one that I like best here's the 71 on the list you quite certain that your old timers team could be the current team. That would be the dolphins right the the the seventy and also mr. dolphins might actually come out victorious right if they played they they would have a chance actually I mean the niners actually could probably do that too. It's some of the Ron Amadon Joseph Montana teams they could probably take on the team make a comeback and oh yeah. Did they win it and I hunt and how they know they lost factory loaded the giant they lost by gathering giants won on last minute drive. So you guys play drafting so time is there can you guys buying. Tutor for us old guys that one play only a couple names remind them who can work on an owner of a couple guys up because I was watching and football on Sunday with my niece and nephew. And they're both playing drafting their big moments in time talking trash and stuff like that rate had no idea I know I was playing that I lost I. A day I had terrible picks and I think. There's a generation us. That would like again a draft kings tutor. Yeah if deaths possibly like we can fix them up I think. Yeah yeah it's heaping a little intimidating so we can definitely trying to at some tutor in her you know. We have to take a break but when we come back or be joined by Patricia Cohen. From the New York Times talking about for profit colleges. There's a big story is gonna really ticked you just got to grind your skiers as they say on Family Guy. For profit colleges is our next topic on the financial exchange. You radio they can enrich your life and help your portfolio. Oh it's a financial exchange we Barry Armstrong on the financial exchange radio network. I hate paying taxes are you really hate paying taxes earlier than I need to the only exception is if I can pay a lower tax free today in order to avoid a higher tax rate later hi everybody this is very Armstrong and it galls me when I see the way that our government waste the money we pay in taxes here's an idea how would you feel about paying taxes on your hiring income today at a possible reduced rate in order to avoid paying tax is five years from now at what I suspect could be a much higher tax rate I'm talking about a Roth higher rate conversion Roth conversions are not appropriate for everybody but I'm offering a free guide about Roth conversions that is a must read 8559821594. This is a must read guide if you're considering a rock irate conversion 8559821594. Call now 559821594. Securities offers you securities America incorporated member and as I can see an advisory services are for your securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are unaffiliated representatives of securities America do not offer tax advice always seek the advice of a tax professional. This is very Armstrong and I'd like to talk to today about SBA -- if you're small business looking to expand or improve your infrastructure you need to take advantage of this great deal from leader bank for a limited time your business can get an SBA -- a three point 99% annual percentage rate with no closing costs on loans up to a 150000. Dollars and that rate is locked in for four years you need to have a credit rating of 700 and they'll give you an answer within ten days of receiving your completed application -- season is here and -- bank has the capital to lend out so if you've got a small business this is the number you need to call 8776917900. That's 8776917900. Take advantage of this great offer from leader bank a four year fixed rate loan at three point 99%. Annual percentage rate with no closing cost loans up to a 150000. Dollars and you'll hear from them within ten days of receiving your application 8776917900. -- right now 8776917. -- 900 member FDIC. Did you know that a solar system on your roof could eliminate your electric bill Boston Sorkin show you how to lock the financial power in your home or business by harnessing the natural power of the sun Boston solar is the number one rated residential solar company in Massachusetts Andy leader in providing. Affordable energy solutions to homeowners throughout New England with constantly rising electric rates Boston sort empowers you to take control of your utility bills and increase your energy independence call 8559799446. Today to receive a free solar analysis of your hole and learn how you can start generating positive cash flow now that's 8559799446. Boston solar can work with you to maximize solar incentive income and all federal and state tax credits Boston solar Smart sustainable saving you money called Boston soared today for your free solar analysis 8559799446. That number 8559799446. Mortgage rates are still at an all time low makes sense to take advantage of these rates with a you're refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders and New England with very competitive rates -- they're experienced staff about mortgage financing options and get a very competitive low term fixed rate for your home whether refinancing or buying a new home work with leader bank calling 776917900. Or visit leader bank dot com leader bank went over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts and mortgage financing deal with the local bank today and call 8776917900. Or email us bad loans at leader banks dot com visit leader banks were all your home buying a refinancing needs 8776917. B 900 that's 8776917908776917. B 900 or visit leader bank dot com member of the equal housing lender. Barry Armstrong knows ahead. It's good to use you know Barry Armstrong. Is here is the financial exchange on the financial exchange your own work. Our guest is Patricia Cohen from the New York Times headline for the article is for profit colleges accused of fraud still receive US funds. Hi patty how are you. I did think you would tell did you post this article that. I think yesterday at about 4 o'clock. In the afternoon. OK I missed it yet and that's right NC yesterday I caught it. And you know tonight read the first pair after our audience and then we talk about it. When the Obama administration agreed this summer to erase the federal loan debt of some former students at Corinthian Colleges are for profit school. That filed for bankruptcy in the face of charges of widespread fraud. Education officials promised to protect students from massive. Or from abuse of colleges and safeguard the interest of taxpayers. That's the first paragraph but the story goes on to say patty that they haven't done any of that habit. Well I I don't think expert that they haven't been any that they they have. Moved very forcefully. Cute. Crackdown. On a lot of the worst abuses that did that for profit college industry and in fact. The enrollment has gone down significantly. Significantly. In the past couple of years as a result of it. The problem. The Education Department faces. Is that there's hundreds of schools that are either being too that are investigated by state prosecutors across the country. That have repeatedly failed. Education Department regulatory standard. But the but the problem for the Education Department is. That they don't necessarily have the authority. To get cut off line you know with Al kind of the group. Positive or conviction in court and act where the difficulty lies on the one hand. They have a colleges that say hey you're on a week's time you know we haven't been convicted of anything and yet. You are threatening to take. Takeaways money that we need to serve and on the other hand you have. Advocate and education expert Rick saying look. Yeah we know we have a lot of evidence. That these guys are not acting properly and are taking advantage of vulnerable dividend and yet there's still raking in millions of dollars and so it is good and very. Millions or billions billions right. Yeah. Yeah education management corporation. There were under investigation. Rate in twelve states right and leased the well yet they got one point two billion dollars in the last twelve months. Right exactly so it if you really be the Education Department and I think they do. Genuinely. Want to kind of crackdown on these abuses. But on the other hand they they are. You know did they do have their authority is. Somewhat limited and meanwhile. You know an important point you make is that even the power that they do you have to crack down there. Republicans and Democrats in congress are actually trying to repeal a roll back those power. So. You know it's been very effective and forceful lobby. That work for this for profit industry. Patty another question that I have is when one of these they'll rules is essentially that. These schools can't receive more than 90% of their revenue from the federal government. But money that comes from the Pentagon's tuition assistance brought them as well as the GI bill. Does it count towards that I was that cross. And that's it seems like this the exact Davis who they tend to target veterans specifically the out of right. You're absolutely correct and in fact one of the things that I mentioned in the article is that very recently in fact it Defense Department actually barred. University of Phoenix his commercial you see on TV all the time you from the won at either receiving tuition assistance. Per any money for active duty military members and also even from recruiting. On military bases of the department of maybe university is appealing that decision. But. You know. Defense Department has the legal authority to do that but certainly in terms that they ruled that you know the accounting rule if it that giant loophole here aptly cracked. So pat you've been studying this problem for quite awhile yet any suggested solutions. Well I mean part of that you don't need an and part of the problem is that there are several levels that would to could be attacked and mean one assignment stand for in congress that. It's it's very powerful lobbying organization like a lot of congress. Members on both sides are even trying to repeal of non. You don't and you. Are you leaving in a position to pay back these enormous loans that you're taking out you know and you get a topic in gonna pay day right so there is on. The one hand there is. And you know congress what. What our legislators could do is to make more effective rules secondly are they. Accreditation board. Corinthians for example which is the example in the leave the one that has gotten the most attention authority on bankrupt they are credited to the eighty. Navigating went bankrupt. Right why did they still there accreditation if they did not if they were not accredited it would not even be eligible to get federal aid. On they also point gap that data security channels which has definitely become more aggressive. On the other hand sometimes they do makes settlements which are firm you know relatively given the size of the company's. Very small amount also. Often in the company is not made any wrongdoing. Though didn't. The educate and Education Department officials. At this date actually. Good on there I'll write more aggressively to shut down these colleges and operating. So many levels at which the problem could be addressed and you know there in fairness. Certainly the Obama administration has definitely taken to move very aggressively. In in the last three of four years due. At this problem. But a side of how you know kind of quietly and mr. on the industry is that. You know we we are still being immersed turn on any TV station and you can see these calmer. You sure can't all right thank you very much patty and a after Rhonda appreciate your time. Keep up the good work that's patty Cohen from the New York Times and you know we knew read that story tracking you read that. EMS Ali is that the name EMC education management corporation. In they've got a lot of accusations against them but they still processed one point two billion dollars worth of loans that's our money I hope people understand that is our taxpayer money. Going to that corporation. And what bothers me the most about this 11 of our listeners nail this he was texting and he said look the money could go to legitimate schools and programs but instead it's going to these schools that in you know my feelings on for profit education I think it is one of the worst industries in America I think it has misled more so many people. In a turning over both years out of their lives as well as future earnings is in terms of what they have to pay back from those loans it's awful. There's a school that advertises. That you know we'll train you in criminal justice or. When nobody goes to the school ends up being a cop in the end up being security guards lead candidate you don't need to go to school to become a security guard yeah there's another school. That has 84%. Graduation rate that's a law school in California. Let me just it goes through case after case after case in what's frustrating about it. Is you know this is going on is the the the government knows it's still going on but we keep given money. Every week worst right now today one of those schools is getting taxpayer money that and it's and and that and that student will default on. And in the worst part is it's almost you know in a lot of cases students say a wolf I can get federal money press it must be a legitimate program also because look the government wouldn't certify a pro they would give money to a program that isn't capable. When in fact that's exactly what's happening. David doused turned down it's down appointed this pop that trading right now what do thank you all for tuning in to the financial exchange today term exotic and very Armstrong signing off. You've been listening to us from our insurer match dot com studios. Security suffered through securities America and remember finreg SIPC and advisory service offering to securities America advisors our countdown representative I'm trying advisory group in the securities America companies are unaffiliated.