WRKO>Audio & Video on Demand>>Full Show 6-28-16

Full Show 6-28-16

Jun 28, 2016|

Full Show 6-28-16 by The Financial Exchange

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

This is the financial exchange with Barry Armstrong and shut sun out. Sure exclusive look at business and financial news affecting your day your city your world. Stay informed and up today about the economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. At the risk of offending pet owners across the globe we ask that question. Is this in fact a dead cat bow tie her buddy Berrian truck with you here on a Tuesday in in the first thirty minutes of trading trucks ought to. Stocks trading up a couple of hundred points it was the Dow and globally we saw markets rising around the world. They saw a rebound over in Europe both on the continent as well eyes in UK markets. Which doesn't really make a whole lot of sense to me it's not a whole lot has changed since yesterday in fact nothing has changed since yesterday so. Unless you believe that everything that happened over the last two days is simply an overreaction. Today does that really make it. There is a school of thought to that perspective I talked to an economist last night he said he couldn't believe the reaction and that things are gonna take that long. The Britain is in the EU were out of the usage different perspectives on it but nonetheless markets rallying. At the opening bell. On really no news pursue a couple peace while the couple pieces of economic and Q1 gross domestic product in the United States. Going from point 8% there that'd be in the second testament. Coming in now one point one for Q1 of bad note that non I mean it's it's still within the margin of error in terms that revisions a lot of really put a whole lot of emphasis on any change at consumer confidence coming out moments ago again a soft number. In terms of its importance but he did recover reading of 98 vs 92 point four. In the month of may. And then finally. Hold prices. Rising five point 4% in twenty cities during the month of April of this according to case Shiller. Yeah I think it's boast that data is pretty much in line with what you'd expect the consumer confidence numbers especially in this one I tend to discount just because. Obviously all of that. Data is gathered before this happened and so it's you know there's there's been a dramatic shift I think in in how people are looking at things right now so. You know all in all I don't. You know none of that data suggest that you should have a 200 point rise and you know is there anything in all that stands out as saying you know oh this is you know something's different from before. Well here here's one thing that struck me was I was looking at valuations yesterday and give an example I was looking at General Motors and at the end of trading yesterday. And I think the dividend was north of 5% on behalf. And the price to earnings racial might have been like four to wonder some ridiculously. Low number and I said to myself okay. Would like think's gonna happen to General Motors over the next ten years and I think they'll do better or worse. I think actually make you pretty well they seem to be making some pretty good cars in their on and be paid five point 3%. On tax favored basis of my own that stock and pilot pay 15% tax. On the dividend at five point 3% so I'm wondering chalked if part of the buying today. Isn't these dividend investors are saying you know and I'm gonna buy dividend paying stocks because I know interest rates are never going up the Fed has no. Wherewithal to raise interest rates song gonna buy dividend paying stocks is that a possible. It's possibility I don't think that's what's happening just if you look at the areas that are being beat up the most heavily are not the areas that are typically thought of as being happy dividend payers the air areas that are heaviest today financials up one point 7%. Energy up 2.5 percent materials up 2%. You big dividend payers utilities pretty much flat for the day. Consumer heard defensive stocks like a Wal-Mart or McDonald's only up point 8% for the day. So you those areas are actually lagging. The market today. Really it almost seems like overnight for some reason you've gone from risk off the rich gone and nothing has happened you know it's and I'm sitting around looking at this trying to to make some sense out of it. And the audio I can think is that look some people are trying to buy this dip probably. I wouldn't be surprised you've got a quarter ending in two days now OK so you've got you know companies you know whether it's hedge fund whether to mutual fund whoever it is you've got hedge funds mutual funds that are saying look we've got to order to try to look good yeah. And an and I wouldn't be surprised you say you know these companies and look will make this thing look good until the end of the quarter. We have eight Friday could be really ugly and then have bought we saw something similar at the end of last year you remember iron out a little bit coming in to watch when he's at he's so and then immediately what was it like twelve straight down days they have had to start the year some and we saw that we told people it was happening. And and I wonder you're seeing something similar yeah desert. Order and good call good call I was thinking along those lines volley he you know you know. We'll know by Friday your theory is correct or just way too cynical anyway here you may Bentley left I don't know that hey I did this normally. Would have been the biggest story of the day. Volkswagen. Celek settling a fourteen point seven billion dollar lawsuit in the United States. This of course a story that's been ongoing since I'm gonna say August or September September of last year. Yet the they have announced that they have come to a settlement for the class action for all US citizens that were affected. By the 475000. Cars that effectively. They were manipulating test results on. And it's gonna be fourteen point seven billion dollars to settle those claims now keep in mind. That doesn't settle anything outside the US it doesn't actually deal with the regulations so it doesn't deal with any of that this is just to settle. With the people. Was that the EPA was yet Duckett case here do they get apportioned but I don't think these deals winning their their bribe. But I don't know to bribe when you do something like that two billion dollars to the EPA that should be money going to consumers shouldn't. Will be how well you deterrent now you know I mean I mean you need to have the ability funded yet you need to have the ability to enforce and so forth so. This is just dealing with the US and I'm gonna pull up I'm I'm working for right now the the report that came out. From Credit Suisse back in the fall because they put together. A great report that effectively detailed. All of the potential outcomes here is that they had some scenarios where. When you include all the different countries Volkswagen could end up paying you know 4050 billion dollars. I don't know it's going to be quite that high but would get fifteen just in the US now you've got the you've got to go through. Whatever the EU can figure out at this point and then you've got you know a whole lot of other cars in places like China and so forth you've got to deal with two. A wanna point out that Volkswagen will also compensate previous owners who may have sold their diesel vehicles. After the cheating scandal became known last year but at only half the rate of compensation being offered to current owners. Particularly. Attractive is the combination. Of the buyback offer and cash payment which appears to be the better option for consumers now I wanna talk about that because I. The it was unclear to me and I'm not sure I agree let's that you own a five year old books like that the diesel. That car's pretty much depreciated down to a minimal value isn't yet and you how much value does a five year old car hat tip. It depends how much how much mileage on if you're someone you'll you know feel like my dad you drive 4000 miles a year now if you get 20000 miles on it cuts and decent value if you're like me you're driving 20000 miles a year 1101000 miles different story so I think it depends on. You know who's driving the car and started. What's the better rocket like if I'm a consumer. Right they offer me say they offer me 8000 dollars cash and yet keep the car in they fix it. I don't know I don't like keep it is that's a better deal. I think it's gonna depend again it's gonna depend on you know what exactly the value of that car looks like at the end of the day if that car is heavily driven and you know you're saying look I need a new car anyways humans they would give you meet value in this and that and only get rid of the thing that sort of depend I pulled up that. The potential cost impact for BW the Credit Suisse came out back in this was an early October. The bull case scenario was to include everything when it was all said and done was going to be about 22 billion dollars. The bearish case is 87 billion it's looking like it's gonna be somewhere kind of in their base case which they outlined. At about forty to 42 billion dollar total so they don't put him out of business. Don't put him out of business but you are talking about a company that prior to this the market cap. On Volkswagen output up but I think it was somewhere around like nine year hundred billion deal effectively you know reducing that. By you know thirty to 40% which is kind of what the market price did. So what do you do you you'll one of these Volkswagen's what do you do I have to give my some my brother in law also expecting him some advice this weekend. He owns one. I think it's if it'll depend on the mileage you know bit if he's if if it's already got the point where he was actively looking for new cars over what book it takes money from VW and then you going to buy new car on your own he liked this car. You may be able to get more that he he likes it and eat I don't think you really wants to sell now. He may be better off just take its cash it. Take in the cash and around. Hey I know many of you are concerned about Brooks you're saying you saw how does it affect the American economy more specifically. How does that affect you certain aspects of the American economy are going to be hurt by the bricks that vote other areas of the American economy might be helped. In the next segment will be joined by Chad mu trait he is the chief economist of the National Association of Manufacturers. He will explain to us the impact of bricks it on the American economy from our insurer match dot com studios. Drexel vote Helmand affect your business or you personally. Get the latest throughout the day with a battering in shock on the financial exchange radio network. 2016. Has been a volatile year so far for the market and the bricks and vote has added to that volatility Titus is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review is the current uncertainty in the global market makes you uncomfortable they give me a call 803934001. In all -- your current portfolio for free that's 80393400. What the point that we'll take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in investor the last and its anti must book your appointment within the next thirty days 803934001. That's 803934001. Securities officer securities America incorporated member of the run SIPC and advisory service is up with the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are unaffiliated. If you're looking for a great deal on a new counter program you should check out the -- rewards program that leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three benefits first you get a savings rate of two point 05% annual percentage yield up to your first fifty K all agree TM fees from you and other banks will be reimbursed and you'll get 1% cash back by using your debit card on visa credit purchases just sign up for -- statement with the account direct deposit at least 1000 dollars per month and do they debit transactions per month cult leader bank right now at 8776917900. To learn more about the consumer rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume we're awards will learn zero point 10% annual percentage human savings balance member FDIC. Very strong here and I'm joined by Todd what's from the law firm Cushing and dole and we're talking about Medicaid income trust Todd if somebody has done their trust planning. What is the biggest red flag should they should be looking for in the drafting of their legal documents you know you need to do to really take a look at your documents and look for certain paragraphs that must be in there. In certain paragraphs that should not be in there for example it's OK if it's as you have the right to the income that perfectly okay but you want to make sure there is. Actually a paragraph in there that prohibits you to get the principal directly. He can get in directly but not directly and if you don't see it say you're looking for your document you say well I see that I have the right to the income. But it just doesn't say anything about my ability to get principle in other words it's silent as to principle that is probably the single biggest red flag you can have because. If you don't spell it out the State's gonna come back and say hey because you didn't deny the right to principal in the state you're probably can get. The states are doing this because their own detriment this financial pressure on sure they. And I think because there are also learning that a lot of lawyers have been practicing in this field for a very short time and are drafting these things incorrectly and the winning. And they're playing their winning went when they're drafted in correctly but the positive front is there's been a lot of cases lately sing it than winning. For this for the people. Todd what's key is making available a brand new guide is designing the perfect in come only durable global trust that's a mouthful. But if you like to get a copy of this guide call toll free 8668485699. There are operators standing by right now. To process your request. 8668485699. That's legal exchange showed dot com if you wanna download the article. Or call poll free. And get your copy of this brand new guide on durable global trust. 8668485699. Securities are securities America member and SIPC advisory services are securities America advisors. Are represented Armstrong advisory group and securities American companies that. Only this there at the charts graphs and numbers all day and just listen to us it's the financial exchange with Barry Armstrong and chuck signed up on the financial exchange radio Ned. Now the decision must be accepted and the process of implementing the decision in the best possible way must now begin turning to our economy it's clear that market so volatile there are some companies considering their investments. And we know this is going to be far from playing say. However we should take confidence from the fact that Britain is ready to confront what the future holds for us from a position of strength. That is debatable we are joined now by Chad who trade he's the chief economist for the National Association of Manufacturers. Chad thank you very much for joining us on the financial exchange today good morning. So Chad you know I think as Americans we're concerned about how. Bricks that impact this we've all seen significant losses in our portfolios and our 401K plans. But what I'd like to ask you is how does the bricks that affect the overall US economy in terms of our GDP. Well in them the one thing that it does most of the just at the level on certainty. I think when you talked to a lot of manufacturing business leaders they RT had a number of addicts on the played it as you know having. That we we've been long overdue for tax reform and for. Regulations hitting us in the face then nothing in the big the big challenge is that manufacturing activity has been relatively stagnant over the last year now you add to that. That there's a global challenge the global headwinds. And I think that you know if you if Europe a manufacturer and looking to add new workers to do more capital spending is just one more thing that you have to consider what you're looking at. Implant that you can make it. Now the United States is the world's number two manufacturer. Are there are differences in the there are significant differences in our manufacturing sectors some things. Are not getting. But we could lose manufacturing degree increase value of the US dollar could we not. We don't Nadal has been a pretty significant adequately over the last year and a half the appreciated. Almost 19%. And the middle of twenty fourteen. Artist obviously. They continued to add to that I think certainly if you're talking to our business leader and they're selling against the UK your predictions are or or or European or Canadian manufacturer. That that certainly is huge cost of bit disadvantage to come up a lot. Fighting which is continuing to add to the overall challenge in terms of of looking at those and it was more current he had went. Is there anything in any room here and I just have a theory more than anything that would might eat French. Companies say you know what. We're not gonna do business with the British even though. It's we're gonna look outside of a Great Britain for some of our manufactured goods because Great Britain I think was what the number twelve or thirteen manufacturer globally. Petraeus and they all they also are fifth largest trading partners so it's important market for a. It's important for us for trade that we could we pick up business from the rest of the EU as a result of this. I think I think the key and keep in mind that the uncertainty with regard to Europe as well mean the of the big challenges is this at the beginning it was slippery slope and I think. The politics over the next few weeks is going to be trying to get to minimize the damage here here France or Germany. And sprint Brody you but you can itself I think it's just simply a matter of moving on and and trying to ticket their house in order. At at the end of the day you know I think we have to keep in mind that yes we had the vote last last Thursday but nothing really has changed whisper right now the UK is part of Europe all of that the point. Changing pretty quickly and I think that the key thing to look for over the coming weeks and months is. How does that process unfold. It is there a situation like you're describing and hopefully that continues to be accessed between the UK and France and Germany. And it's more important from the US perspective hoping that we can continue to back system. I would think that. The eurozone is is pretty important to to China it isn't today is in Europe the big consumer of Chinese products for the biggest consumer. It is and certainly I think that as China have continued to slow you've seen a lot of effects from that particularly in Europe. Europe depends on China much more closely than we do we even. Do you expect that the US interest rates will go down we've seen the ten year treasury go from. Arrow 230 last year down to I think it's about 146 today. What's what is the EU what is your anticipated impact on domestic interest rates specifically. The US ten year treasury. Well I think it but the first thing that just the facts of obviously the Fed had hoped to start normalizing rates I think that there was content but underage rate and its June meeting that didn't happen. That's probably the practical probably take the July increase off the table and maybe even September although that's probably where the betting money would be right now. And so I think we were just seeing happening with interest rates is that that the US that the fate in the safe haven and you beat a lot of money flowing into. US securities US bonds in the last in the last few days and that's pushed up interest rates or level. But what historic lows in terms of mortgage rates. Popular thought we'd be here right now and at a large part of that is just that that uncertainty that's out there. And I think the key thing will be how does that shake out of the next few weeks and days. And what does that do in terms but when it starts to it and we'll get to normalizing rates this year will push off and Detroit seventeen. Has this impacted your GDP estimate for 2017. Page like he if you were say your running 2%. Or two and a half percent for seventeen are you now looking at a insane left price gonna be half a point to one point lower. I think it probably shaved off a couple. Couple tenths of a percentage point off of my forecast right now wouldn't I wouldn't say that it's it's overly dramatic yeah I would they have been under 4%. We're still looking at roughly 2% a little bit less able this year and next year right now. Very good Chad thank you very much for your time we appreciate it. Chad mu trait chief economist National Association of Manufacturers and chuck like everything else it depends on what side of the trade bureau right. If you've got a four and a half percent mortgage you're probably looking at this insane while honey we just saved we can refinance since it 400 dollar amount. Yeah I'd say it's certainly there are certain people who are going to be able to benefit due to the situation at the happier right now manufactures no not really one of them unfortunately that is an area that I think is going to continue to feel some pain right now because of the stronger dollar it is going to continue to make US goods less competitive abroad in that situation that they've been in for the last year and a half now. Every 10%. Of an increase. Of the lead in the value of the US dollar impacts our GDP in Korea is its. It's it's remarkable the impact that it has so if you're in the manufacturing sector right if you're exporting goods what this is a killer. It is but the other thing to keep in mind and it's this is why it's not a simple. The solution it's it's not a simple problem answer. If you are someone just you know regular average Joseph who goes to work every day make some money in and get tries to figure what to do with it. It made your cost of living may actually go down in the short term because of the stronger US dollar because it's cheaper to import goods because it is cheaper but it to buy goods with that stronger dollar so it's you know it's not as simple as they are strong dollar is just bad because there are some benefits to our as well and okay prices it's you know that there are a number of different benefits that people pick up but. It's kind it is given tape here and I think that when. You look at it kind of in you know. And you sum up all the different effects you know it's probably a slightly positive effect you have that stronger dollar even though it's not good for manufacturing. Americans driver American drivers to regain their appetite for gas guzzlers so time so much for the hybrids and big time in this. Buried I gotta tell you you're talking about a room moving to electric cars and this is a study that shows from Edmunds dot com. It's 75% of people who have traded in a hybrid or electric car have replaced it with an all gassed very disciplined very disciplined sorry to hear. You know you know what it's an. 2030 years area Armstrong friend sent. But the story about lift hiring and emanate banker Tucker you remember right floated the story. I started my own drummer again. About Ford and Hoover member of that yes it was going to buy Ford right. You think they're gonna pilot now. Now I think GM might buy. That's would be a higher lift tires and I an investment thing. Now lift this haven't a tough time and by the way might my rumor is confirmed in the Wall Street Journal today. But there is speculation which rumors that. The car companies get together with these technology companies work we'll talk about lift in GM. When we return. To the financial exchange from our insurer match dot com he. Making your Smartphone even smarter. Don't go mobile lab by surging financial exchange joke in nineteen Jordan who. Who played stores this is the financial exchange radio network. Understanding how to build a well rounded investment portfolio is one of the keys to being able to withstand market fluctuations that means you need an advisor who can create a global investment strategy that includes the international market many products made in Japan and across Europe are extremely popular in the United States particularly those from the auto and electronics industry it may also be beneficial to consider foreign nations diversified low cost index fund or one of its exchange traded funds if you're advisor hasn't discussed the value that exists within the international markets been called the Armstrong advisory group at 803934001. And I. Ask for our free guide on investing in international sectors that 803934001. Your suffered securities America incorporated members and SIPC and advisory service and suffer through securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated and investor cannot invest directly in an index past performance is no guarantee of future results. If you've been thinking about starting obviously cleaning process think about this what would you do if you spend money working with an attorney to put your -- clean -- place only to find out that when it comes time to go into the nursing home your trust wasn't designed properly -- -- five years to protect your assets from the nursing home and you need to make sure that you are wasting your time -- your money on legal documents that don't work Todd let's keep from the law firm of Cushing in Dolan has written a brand new article called designing the perfect income only irrevocable trust that contains language that must be included in your trust and the language that absolutely must not be there coma now for your free copy and then give your own trusted check up at 8668485699. Cushion in Dolan has been helping families protect their assets for more than thirty years let their experts help your family 8668485699. 8668485699. Or download the guide on our website that legally -- show dot com that's legal exchange showed dot com. If you're looking for a great deal on a new counter program you should check out the zoo rewards program that leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three benefits urge you get a savings rate of two point 05% annual percentage yield up to your first fifty K. All of your ATM fees from these and other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for these statement with the account direct deposit at least 1000 dollars per month and do they debit transactions per month cult leader bank right now at 8776917900. To learn more about the zoo rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards will learn zero point 10% annual percentage yield on savings balance member FDIC. I am very Armstrong from the financial exchange and I told you about leader bank many times I've taken advantage of some of their super offers and appear to tell you about another one you're offering a tremendous deal for a small business loan this offer is only good for a limited time so if you own a small business and you're looking to make improvements this is a deal that you should really pay attention to you can secure a four year loan and fixed rate of three point 99% with absolutely no closing cost alone can be up to 50000 dollar and leader bank promises a two week turnaround in under ready for decision that's a four year loan at a fixed rate of three point 99% this is a tremendous offer but it's only available for a limited time right now 8776917900. That's 8776917. -- 900 and you can lock in to this great offer 8776917900. Or visit them online at leader bank dot com. Member FDIC equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Hi this is Marc bureau CEO and ensure match and proud sponsor of the financial exchange with Barry Armstrong like Barry we know that to build a solid family plan that includes financial stability and legal flexibility unique to have all your ducks in a row that's why at the insurer matching agency our goal is to provide you with multiple quotes from the top rated insurance carriers will help you pieced together the most comprehensive and affordable plan to protect your family calls today 844 and 99 match that's 84499. Match and let us review your current auto and home insurance policies to help you decide if there's something better out there for you. Cold right now and also receive our spring insurance guide for free guide includes checklists for both your car in your home to help you determine if adjustments are necessary to close any gaps in your coverage culture match today any four or 99 match to make sure you're prepared for the road ahead that number again is 84499. And AT CH or visit us online and ensure a match dot com. It's the financial exchange at your fingertips. Well. Yeah. Thanks 686. AB it's the financial exchange on the financial exchange radio network. Time for trivia from the swollen and I'd give this is a five. On the scale of one to ten. Terms of difficulty. What is the name of the treaty that marked the end of World War I. First listener with the correct answer wins a prize or text number is 686. CD. What is the name of the treaty that marked the end of World War I or let's go back arguably the worst treaty ever written by the way. Well it really in our liberal or directly to world war Ian thank different now. That the peripheral law that they they really they wrote a and he wrote it and that's the latest. And lift tires emanate banker. Catalyst partners. And I was fascinated by the story because he finally got to look under the hood of the technology company that's privately held lift is a privately held. Competitor to uber the last guy Jewish and that I saw new bride believers around seventy billion dollars. This one it makes it look based on GM's investment which occurred in the spring or in the winter this year. At TP invested 500 million dollars cash and they got a 10% interest in the company. Yeah right they're valuing the company effectively right now at five to six billion dollar range somewhere in that ball park and you know I think it does raise some questions we've we've. Talked a lot in the last month about a Hoover's been going out and rate raising a boatload of cash they raised was coast like five billion dollars now 515. Billion you glad that's total total right but the only having a three and a half from Saudi Arabia rubilian from a forget where they're going out and doing that the credit line of something to do. So you know this is a different approach I think it was over they may have simply been trying to take advantage of the market and I think there's going to be real weakness in VC money that's available the next couple years because I think you start seeing a lot of these tech unicorn. Starting to die out I think there's going to be. Eight calling of the herd in tack. Over the next couple years I think that. Lift appears to be taking a different approaching look instead of trying to raise money. Why don't we try to position ourselves as an asset that can be quiet. With a deep pocketed partner like General Motors that already owns a big chunk of the company. Yet I think it's it's an interesting. Option for the I don't know if if I'm GM and GM right now is about a 41 billion dollar company by market cap. I don't know how much I want to be spending on the left and it's not because I don't think that is a company. That offers a number of good platforms that think they have an awful lot that they do right. I just wonder if they may be able to get them at a discount a year from now. At the I think there's going to be a lot of thinning out in this space and I think that you're going to see evaluations. Heavily. Heavily depressed only to your players in the United States knows what it means make when you think about this specifically you know. Well depends how you look at what they're trying to do if you're looking at it just in terms of ride sharing. The answer is yes but if you look at some of the other side platforms that they've been trying to build out in terms of food delivery. Product delivery and so forth all of a sudden you get to Amazon you eat you get to a number of different companies that compete there. And that's why you know with a lot of those businesses that have looked archive barriers to entry there are not you know there are a lot of companies that are trying to do this. And you may see some of these companies that look might have pretty good businesses but that just can't actually deal with increased competition and I wonder if that might be one of them. And if someone might be able to acquire the more cheaply next year. Well and and I think issue for lifting is movers got that you know that bank roll of cash up. And they can go into the city and undercut list making billion insane. We're gonna lose money on these rides and pay our drivers a little bit more than lift lift doesn't have. As an unlimited supply of cash. No fortunately for them. And in the issue that I think Cooper runs into at some point is you and in this is where kind of this again employee contractor relationship I think. Is really gonna come to the forefront at some point you probably start to get antitrust concerns. And yes they need competitive I just wonder though it again I think. I I you know floated out my wrist dead serious that I think there's something going on between Ford and Hoover. And I think the same thing now is is being somewhat validated by this conversation between General Motors and left. Well I think. What's what's going on here I think there's a possibility that GM may up at stake here in some fashion I think that you may see some other companies potentially grab a piece is well. I don't think that Hoover in four and have any type of deeper partnership that's coming in the next year and I just. Gives you look at it and I just I don't see who were being able to pull that off in still remain solve. And that'll 860 ask why would GM by a fleet service when they just got out of selling fleet vehicles. This is different that you win 82 of the new fleet well and if you look at the deals that the strike pattern if you look at the financial arrangements though. But I've looked at the that the cost and that they are able to recover when they sell via one of their GM cars to a driver. Very profitable they sell it at full price in the finance and high interest rates because the people that. Are looking for this chock typically don't have the financial wherewithal to blog by car. Yeah if not only are they getting a free car they're getting a job. And this is I also think GM realizing look fleet sales in the long run when he talked about rental cars rental cars have been impacted by these very Serbs asked. And so because of that GM I think it's march say look we're in a pivot away from kind of what the past is and high margin in this is where we wanted to go as high margin. It is scalable there is you know you don't have to do a whole lot of work there and they your readiness act in and then you're ready when the car's driver school and you're also you're getting people in gear ecosystem right away they're going to and you're looking for a rental car. It's okay what's best hurt budget Avis depending at whatever whatever the best deal is but if someone's already using your service year like this if if you have that in because they're leasing a car for me right. They were already in your egos. Well let's let's say your your go to school right and your your go to grad school and you're studying for your MBA. Or you go to law school and you got a lot of down time he can't afford car right is this a great way to go out get a car for free I think it it is a huge opportunity for people that situation you get a car for free you worked 2030 hours a week to make some cash on top of getting the free car. And you're paying for the card GM likes the deal if your paying for the higher car and very high margin basis. What do mentions something on behalf of Cushing and dole and this is the last week. Where you can Colleen and receive their free guide it's called designing the perfect income only durable global trust. Now I can tell you who has been calling in for these guides it's anybody who does not have long term care insurance if you do not have long term care insurance. This is a must read on behalf of Cushing and dole and that's a law firm that created the guide the phone number is 866. 8485699. That's toll free 8668485699. The name of the guy is designing the perfect income only terrible will trust. Perfectly suited for anybody who does not repeat does not old long term care insurance but number one last time. 8668485699. Mitch products buying a company called hardware for one point one billion dollars I believe park where is the New England based company. They're based out of Framingham mass choose my own hometown my dad. It's a medical op heart wears a medical device maker that is being acquired here by Medtronic to against specializes in medical device is here it's gonna be a 58 dollars. In cash per share offering 93%. Premium over Hart where's final closing price on Friday. It's a stock that followed pretty significantly about 60% over the last year so somewhat. I don't wanna see bail out but somewhat of a you know positive. Move for them here but still leaving them significantly below. Their 52 week high of 94 dollars a share so. Getting some value back there but you have to look at this and say look Medtronic is probably getting quite a bargain on these assets compared to years. Yup that sure and then of course sad to announce that legendary. Coach basketball coach pat summit dying at age 64 years old. She was quite the basketball coach at university shoes the one coach it was used as it gets that could give UConn a run for their money. Will she was pitched to that Tennessee program was UConn before UConn existed and you know you have to say you'll get you know her track record. And what she was able to do there and you put that up against just about any coach in any sport and yes she's right up there at the top of the list not only in terms of what she was able to do on the court but the things that she did in order to grow the game of women's basketball. I think you know you you talk about what you did there. Absolutely a huge huge you know. Only sixty dead warriors or. 64. Young you know in it was only a couple of years ago that they announced that she had early onset dementia and I guess just went downhill. More quickly than I think most people imagine him really awful. Couple that people correcting us saying hey did GM does not give you free car we recognize that they sell the cars to drivers. They can't afford to buy one or don't have the credit to buy one otherwise. They put a chip in the cars to track the way there that GM program works is they put a computer chip in the car. You're looking for work and you live being in general we live in Hartford and you you you you need a car but you probably don't work ten hours a week. Maybe 2015 hours we just pay for the car up. Driving for lift but then beyond that you're making a wage did depending on your success you've later tips on top of that. But that might point that I was trying to convey news. GM is charging at very high profit margin on those lease deals are those purchase deals would have you called that it actually. Formally known as a lease deal that it's very profitable for the company. Oh very much in that instance much better in the sweet deals that they used to do it hurts and with Avis or even when they used to sell. Cars to police fleets and things like that so that was my point on the lift arrangement I think it's a brilliant strategy on the part of General Motors. Up next we will be joined by Michael Robinson from the Motley Fool looks like we have to stocks to discuss with Micah from our insurer match dot com studios. The people of England have spoken and the US markets overreacting. How would affect you going forward stay tuned to Barry Armstrong and chunks out of for all the latest right here on the financial exchange radio network. 2016. Has been a volatile year so far for the market and the bricks that vote has added to that volatility hi this is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review -- the current uncertainty in the global market makes you uncomfortable that give me a call 803934001. In all -- reviewed your current portfolio for free that's 803934001. The appointment will take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in investor the last and its anti must book your appointment within the next thirty days 803934001. That's 803934001. Security officer securities America incorporated member camera SIPC and advisory services officer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Understanding how to build a well rounded investment portfolio was one of the keys to being able to withstand the market fluctuations. That means you need an advisor who can create a global investment strategy that includes the international markets many products made in Japan and across Europe are extremely popular in the US particularly those from the auto industry in the electronics industry that may also be beneficial to consider a foreign nations diversified low cost index fund or one of its exchange traded funds if -- advisor hasn't discussed the value that exists within the international markets Colby Armstrong advisory group at 803934001. And ask for our free guide on investing in the international sector that's 803934001. Securities are printer securities America incorporated member finreg SIPC and advisory services offered through securities America companies incorporated Armstrong advisory group in the securities America companies are non affiliated and investor cannot invest directly in an index past performance is no guarantee of future results. Hi everybody very Armstrong here from the financial exchange and I'm joined by. And leader bank has an exclusive. Program. For those of you who are landlords if your Cora collecting rent from 110 and 401 tenets. Zero it might be something you want to look into Jake talk to us about your how long has it been around. We've been offerings he ran for almost two years now two years and his have been successful it's been extremely successful we've. Offered his product to really target are lame horse were still collecting checks and pay perform in this day and age. And the purpose of zero needs to really bring everything on the line between electronic but more importantly. How did he said it and forget it so what's a landlord has their tenants that up. Really there's nothing that needs to be done until the leases over. The rent is automatically drafted from the Tenet's account he knew he choose the date of the month does it always the first of the month or could it be that there there. That's a sign attendant on the fifteenth to be the fifteenth of every month yup absolutely Chilean courts that's the initial date. Whatever day of the month that is. It will be the same date every month of the collective how much does it cost the landlord to set this all so it's absolutely free if filling in our banks with us OK so if your idea landlord you have your bank account leader saying you get this is you rent service for we get for free. That's you have a bank account elsewhere will still provide a service for small monthly charge. And if you ever decide to move your bank relationship over waive the fees that's pretty pretty simple it's pretty cheap. And it's a great product are landlords are absolutely love it love it all right it's called see rent and the website for his WWW does he rent dot net. Or you can call leader bank at 8776917900. To learn more 8776917900. Collect your rent electronically makes an awful lot of sense to me the phone number again 8776917900. Or visit. Zero rent dot net. Stock tips stocked with Gary Armstrong and shuts Ghana it's the financial exchange on the financial exchange radio network. This segment of the financial exchanges brought to you by Seacrest. If your landlord take advantage of 03 fully automatic online rent collection tool. That is free for landlords and tenants. Sign up and have written checks deposited directly into your account call 877. 6917. B 900 or visit Z rent dot net it is now time for stock topped. It's certainly as we are joined by Mike Robinson from the Motley Fool Mike and thanks for joining us tonight. Mike let's talk first about SBB financial group by this is the holding company that owns silicon valley bank. And can you explain to our listeners a little bit about what they do and how they. You know exactly where their niches in financial services. Sure yet so and it it it's really no different and dignity to the basket they have a lot of commercial credit and they have some checking accounts mostly for commercial businesses. It over it very plain Vanilla in the in terms of the day to day operations but what made that you eat. If it's focused on and growing it silicon Alley. Companies that are early in the white Michael Gregory quickly. Typical intact and is but in all of two are they have services. Include capital all the line in the checking in dating sites that have accounts for venture capital and private equity companies and they need in the professional network of the type the company's. I think what's interesting about this company and especially if it is model it's focusing on those kind of a league ruling could it have opted to do Perry Kurt overtime to grow app that. Much quicker than a normal bank. This year it is that expect to grow up 20%. I it's after based deeper and and my ass over the last five years company for the annual. I and I think right now the great content to be divided company it's been what would happen after that happened optical after the date but. Even more so what happened at the moment but with that dot. Now is this a company a look at it it's a little over four billion dollars in market cap is this a company that is. A it essentially gave regional bank in that they are geographically limited or does their specialists Asian intact give them more geographic footprint. But I'll show you that this would that at the latter of their excellent base intact allow them to grow. A bit with their bye. And that's a lot of them that octave crops. Across the country it even crossed both oh. But what they do to. Where one equity. But took more traditional bank would put up an opposite and made it into that geographic region in hopes of attracting business. They wait to grow with their because they know client. Which may eighty we baited by that it would already developed the very relationship. We note clot moved to the East Coast or even anti Europe it will the satellite off it. Between those it would require a and I think if you look at the date not I liked it better round 14 I but I'd be a treating about one point refile it even more now. Especially when it's expected to grow old at that. Very good market thanks again for your time today. Mike Robinson from the Motley Fool talking about SBB financial group parent company of silicon valley bank the ticker on that. Is SI VEB. All right let's take a look at to pull this story crossed by wire this morning. And they're launching. Q3. Or Q4. Of fifteen was down a lot. Q. One of sixteen was down and now I'm learning that April sales were down 22 per or 26%. Yet company that has had some trouble getting people back in stores and I think part of it is due to increased competition and also the fact that look once you go you know you eat it used to be you might have got its toll to three times a week for something. And what you go you know maybe a couple weeks couple months with out it due to the scares they had back last fall. You may realize. You know what. Found something else that I like better than people actually don't alienate your loyal customer and that's what they did they did and they are under unveiling a short term loyalty program it's gonna last for about three months it's going to be called. Chip tropea which is probably the dumbest name in the history that's already a program. Chip tropea. I'm as a matter of fact I eat I convinced my wife we're gonna go chip utopia I mean to. A chocolate cookies on my my life right higher going there for lunch today but you can't Sam went into. If you yeah I went to Tokyo look at Austin yeah gets them how does that work specifically duo how many burritos and they have they have an island they haven't clarified everything I believe it'll probably be somewhere in the range of ten burritos and every one burial Armstrong launched. And so pretty much you'll be able to get you somewhere in the ballpark you know you buy timber is you get one free yeah. No I go to chipotle ten times in three months now I don't. College students would assure that he used. And that's what I went to one that was around an audience right now. V if you go to Lowe's where they meet their parents who you have to find techsters where did hipster hangout Brooklyn's Brighton. Does that. Somerville. A lot of it is days isn't that you know that there triple is not hip anymore it's not note chipotle is late bury six years ago Napster's. If it's not. So who's their market who's their target market the coming out with a scoop on our list. Program loyalty program. Who is the target market for chipotle excites me at this point Tucker what is it kind somewhat kind of been you know mid twenties to early thirties now really hipster at this point we just kind of you know somebody thinks they're kind of yeah yeah but not really. 0860 saying it's buy four get one free order he has some inside information. That would be a heck of the deal I see a lot of high schoolers when I go or like people were just getting in the call it's like that each group I see a lot of that's not a parent with kids will be kids you know kids that are you know like that six in ten years old have surprised yeah I would think that the six year old would would likes to food yes you. I think you get like one individual taco some commodities and fewer special stuff or kids just like you know every other place for a once as I got sick at chipotle never going back. Jim joke is just. Not a good name mean it's got to be like. And you gotta be. Let me let me let me brainstorm on this one missed some easy enemy apparently easy game. The burrito bullets or something like quite get over that like through subtly. Says he had ten breeders' he had a 50% discount on your next ambulance that's worth it. That's worth it to Shea Tuesday. All right well thank you very much for tuning in to the first hour of the financial exchange with chuck is not a talker Silva. And Barry Armstrong from our insurer match dot com studio. If you're casual observer of the stock market we have an interest in that diversified portfolio please pay close attention to the following message understanding how to build a well rounded investment portfolio is one of the keys to being able to withstand market fluctuations that means you need an advisor who can create a global investment strategy that includes the international markets Japan is one of the world's most developed nations and it's a leading manufacturer of highly visible products that are top performers in their industry if you're advisor hasn't spoken to you about the value of international investing then called the Armstrong advisory group at 803934001. And ask for our free guide on investing in the international sector that's 803934001. Dirty suffered through securities America incorporated member of camera SIPC and advisory services offered through securities American companies incorporated Armstrong advisory group in the securities American companies are not affiliated an investor cannot invest directly in an index past performance is no guarantee of future results. Find your favorite news photos and sports updates on your phone when HP mobile from the Associated Press AP mobile where the news gets its news hi I am very Armstrong from the financial exchange and I told you about leader bank many times I've taken advantage of some of their super offers and I'm here to tell you about another one you're offering a Trammell. And just deal for small business loan this offer is only good for a limited time so if you own a small business and you're looking to make improvements this is the deal that you should really pay attention to you can secure a four year loan and fixed rate of three point 99% with absolutely no closing cost alone can be up to 50000 dollars and leader bank promises a two week turnaround in under ready for decision that's a four year loan at a fixed rate of three point 99% this is a tremendous offer but it's only available for a limited time call right now 8776917900. That's 8776917900. And you can lock in to this great offer 8776917900. Or visit them online at leader bank dot com. Member FDIC equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Hi this is Marc bureau CEO of ensure match and proud sponsor of the financial exchange with Barry Armstrong like Barry we know that to build a solid family plan that includes financial stability and legal flexibility unique to have all your ducks in a row that's why at the insurer matching agency our goal is to provide you with multiple quotes from the top rated insurance carriers will help you pieced together the most comprehensive and affordable plan to protect your family calls today 844 and 99 match that's 84499. Match and let us review your current auto and home insurance policies to help you decide if there's something better out there for you. Cold right now and also receive our spring insurance guide for free guide includes checklists for both your car in your home to help you determine if adjustments are now. Talking about Medicaid income trust Todd if somebody has done their trust planning what is the biggest red flag that they should be looking for in the drafting of their legal documents you know you need to do to really take a look at your documents and look for certain paragraphs that must be in there. In certain paragraphs that should not be in there for example it's OK if it's as you have the right to the income that perfectly okay. What you wanna make sure there is actually a pair graphic in there that prohibit you to get the principal directly. He can get him directly but not directly and if you don't see it they are looking for your document you say well I see that I have the right to the income. But it just doesn't say anything about my ability to get principle in other words it's silent as to principle that is probably the single biggest red flag you can have because. If you don't spell it out the State's gonna come back and say hey because you didn't deny the rights to principal and the state you're probably can get. The states are doing this because they're under tremendous financial pressure on sure they. And I think because there are also learning that a lot of lawyers have been practicing in this field for very short time and are drafting these things incorrectly and the winning. And they're playing their winning went when they're drafted in correctly but the positive front is there's been a lot of cases lately saying it then winning. For the us for the people. Todd what's key is making available a brand new guide it's designing the perfect in come only durable global trust that's a mouthful. But if you'd like to get a copy of this guide call toll free 8668485699. There are operators standing by right now. To process your request. 866. 8485699. That's legal exchange showed dot com if you wanna download the article or call poll free. And get your copy of this brand new guide on durable global trust 8668485699. It's not too late to get a great grade and whole mortgage leader bank specializes in a wide variety of purchase and refinance loans that some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing co lead 776917900. That's 8776917900. Or visible leader banks dot com member FDIC's equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Hi I'm at a London and appear 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 assistant living and alzheimer's care nursing homes. Even important financial information. They had obviously researched every place not just given meanings. They tell me a place for which you could afford and it was magnificent. We are now very confident that she's safe and they just helped every step of who. And 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 that we help you need during this turbulent time call now 804677530. 8046775. There Pat Boone here with a word about banks' safety you think your money in the bank is safe. Don't bank on it a generation ago bank account felt secure and they paid interest this encourage the virtue of thrift. Saving but today. Bank accounts paid virtually nothing. And shifted from lower risk. The 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 hear this. And that's just the first of nineteen risks explained in a new 32 page white paper entitled don't bank on. Still think you're bank depositors eight. Yet this vital new white paper now call toll free 8051960. To 71 that's 8051960. To 71. Whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buy your gold locally it just makes sense give leader banker called them learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency not guaranteed by the bank and may go down in value leader back a step ahead. Fight your favorite news photos and sports updates on your phone when HP mobile from the Associated Press AP mobile where the news gets its news. This is the financial exchange with the very Armstrong and show Oksana. You're exclusive look good business and financial news affecting your day your city your world. It's stay informed and up today about economic and market. Drugs plus breaking business news. And now the funding to exchange with the very Armstrong and shocks. On Friday and Monday the stock market retrenched to a great degree who had collectively in the S&P 500 would lose about 5% correction. Connect to date period of time it is not uncommon UC dramatic swing to the downside. To see what is. Referred to now like the phrase that is referred to as the dead cat bounce was stocks rebound and at the opening bell today. Stocks were up a couple hundred points there up a 133. Points so this rally shot. That had been up as much is two to twenty on the down. Given a little bit of ground back and you know it's again I have I have some real questions as to whether or not this is going to be able to hold up just because taking a look at the last couple days. You know this was a market that had a significant sell off on a high volume two OK and I want to take a look at the S&P 500 because. Volume something that's important when we're discussing moves in the market because let's say there's one share of stock that traded in the course of the day okay. If the market moves based on that it's not nearly as significant as it removed the same amount. I'm a hundred times that ball so in the example of the S&P OK average volume over the last six months or so. Thought about two and a half billion shares per day I don't have the exact number but I am a Bible it is based on what I see here. On Friday when he had the big sell off. You're up around four and a half billion shares and yesterday when you had another sell off you were north of three billion shares so. UN high volume on both of those days you know that's not something that typically suggest you suddenly gonna just bounced back. And pickle that back up and ourselves in Britain votes today yup that's it up. We we didn't mean it would now think they can't even do that right and it Marion that's an option at this point. Well they've they've they technically could but you invalidate the entire vote that just happened pretty much you do that I mean if you know I was talking about it with someone yesterday solicit that you did have a revote OK let's say that remain ended up winning. Do you go to two out of three right back with what is this the best of seven series I mean how how are you gonna go with this I think look I disagree with what the British people did now. But look you've got a mandate for what to do now you got to follow through and do that. Mike here's a question I have for you and it relates to interest rates. I believe there's a consensus now that interest rates are gonna remain low for an extended period of time before the vote. We were looking at low interest rates through the end of twenty ET that coming out of the Federal Reserve right there are in there might be one rate hike in the next three years. Now my gosh I I don't know if you ever get another rate hike again I mean that's how dire things are looking. Doesn't that push investors into dividend paying stocks I know myself I'm looking at it saying. Two is why would I owned a money market account or whatnot why would I old. Money in CDs and seeks a Alter safe investments other than if I had to pay for say a wedding or something like that yup but. Like why would you why would you hold these ultra safe investments when you go out by dividend paying stocks through dividends of anywhere from tech tune of 5% does not come. Wasn't mentioned it does depend on what your time frame is if you're looking at this and saying okay. If I'm planning for 101520. Years down the road book I certainly don't want to go out and take all your money put it in today. But he started dollar cost averaging program for the next six to twelve months that something. That can make sense for in talking about expectations are low interest rates let's talk about you know what's being priced in right now. At this point there's a 0% chance price by the market that there is a hike by the Fed in July yup a 0% chance in September. A 0% chance. In November. Eight seventeen point 1% chance in December which I think might be overstating then how I have a chance there is. And a seventeen point 1% chance in February you know with this is effectively taken any rate hike off the table. For the next six to nine months. You know remind you can just buy it say you don't wanna buy individual stock you're you're too much work you don't wanna do the research. You by the S&P 500 and the dividend on just an ETF and the S&P 500 is north of 2% and the dividend in the return if you will. On the ten year treasury note is one point 47%. So it means over the next ten years you're gonna earn one point 47%. On your money can buy the ten year treasury. He evade taxes on that it ordinary income tax rates which can be as high as 43%. Well and in beyond that if you're willing to take a little bit more risky go on by NE TF that international dividend fund and you know you've got one here that I'm looking at I DV. That has a yield of five point 72% right now so it's you know there's there's a lot more risk when you do that but there's things to consider and in this yearlong term though I mean. You know that there's things to consider when you look out there and I'm not saying it's right for every one because again if you're short term investor you you can't try to time the market because he will you know more often than not end up hurting yourself there but if you're looking and saying look for the next fifteen to twenty years and I started dollar cost averaging program. Over the next year. You know look it's it's not necessarily a bad time to do that recognize that the market may go down in the short term and you may find some cheaper values to violent. Tucker Silva on his game bringing each story to a spike Kia. Is recalling 29 million dollar chests and dressers. After six children were killed when the furniture toppled over and fell on them holy smokes up a lot dressers to. Know that more. People die from. Furniture tipping over on and any given year that shark attacks I did not know you can't know. More and Arafat and more people die and it's it's usually children who wanted to pull it over now more children and in people die from heat orders are tipping over than the shark attack passage it. The climb up the brewers as the drawers service that yep and they got I think it's like a latter is something that's what you are going on around you you look at a lot of odd dressers now they've got the wall mounts there the there's entirely is offering by the way yeah so it's. And it's it's it's widely known that you know this is something that happens and part of baby proofing your home is. Is July deal with this but in a lot of cases you know people simply may not have been aware in this and that and so like you how many did you save is that they were called. On nine. Did you imagine the the egg and I think we need to just reiterate our boycott of Nike. We are we're boycotting anything Swedish because the lobsters right turn out the only adult go to IKEA look at got killed children. They killed six children but their dress and there we go there there there there radio generated very rapidly. FaceBook and I this is creepy. FaceBook is tracking your phone's location. And using it to recommend friends. Mark Zuckerberg I mean. That guy knows more about us. That didn't in the NSA. Will he get to report on you every night at nine AI it's pretty boring report but it what should triple play again again went home. I mean ice cream yeah it's and this is an unusual for FaceBook by. So it's it's an usual and that they are used winter games ever one goes. So when you go on to Google for example OK if you were to go and Google something if you were to Google. Restaurants okay. It knows your location and if it filters your search results based on where you are this is just filtering a different type of thing now is does come off little creepy. Yeah but this is location based search has been one of the great innovations of the last ten years because you don't get restaurant recommendations for Austin, Texas when you're in California. Have you guys noticed Tucker he notices when you getting your car my. If you're going see your own home it's it's 3 o'clock in the afternoon you're going home after day's work break that there's a text message that shows up on your phones saying. Traffic to get it field is normal Fidel actually have noticed that and then I noticed the city every day when I'm when I'm leaving work and knows that I'm going home. And then the other thing it notices. Is on Fridays if I normally says I normally go to Connecticut and Friday socialists don't what that time is to go there yep. It even knows that at play tennis on Saturday and Sunday mornings and he'll tell me how long it's gonna take me to get to the tennis court. Now as that apple is a cool maps that's its Google. No that's apple maps that has that typically pushing out those notification if that happens now and it's. See what where they're trying to go with it and what the holy Grail is for marketers. Is a situation where let's say you're trying to drive home on Thursday now OK up and it says you've got heavy traffic a twenty minute trip is now sixty minutes stop by to Poland. Here's a coupon for two polar combined waited out that's that's where marketers and work companies want to take that technology and it is Smart. You wonder about how interest it's gonna get to be a lot of people may be able to turn it off at a certain level rate but. It it's incredibly Smart or something where you know they detect that you know based on your movement that you walking on the street outside of Macy's paste up animation is now we've got 10% off if you come in in the next twenty minutes. Our next guest is gonna be talking to us about China. How to pronounces the entire Steve sank as spanky Steve spanky here's the chief investment strategist for Q point. He's in Boston to speak to a group. But doctor skate he served as White House advisor in the Nixon Carter. Reagan and bush administrations. And he also served in the US treasury he's gonna talk to us about China. He thinks that that is the greatest risk to investment portfolios going forward that's our next topic from our insurer match dot com studios. For the most complete and comprehensive coverage on the brakes and vote and how it affects us here at home can do right here with Barry Armstrong and chuck stuff. On the financial exchange radio network. 2016. Has been a volatile year so far for the market and the bricks -- vote has added to that volatility hi this is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review of the current uncertainty in the global market makes you uncomfortable that give me a call 803934001. In all reviewed your current portfolio for free that's 803934001. The appointment will take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in investor the last that's anti must book your appointment within the next thirty days 803934001. That's 803934001. Security officer securities America incorporated member camera SIPC and advisory services up with the securities America advisors incorporated Barry Armstrong were presented at Armstrong advisory group in the securities America companies are unaffiliated. If you've been thinking about starting obviously cleaning process think about this what would you do if you spend money working with an attorney to put your -- clean -- place only to find out that when it comes time to go into the nursing home your trust wasn't designed properly it takes five years to protect your assets from the nursing home and you need to make sure that you are wasting your time -- your money on legal documents that don't work Todd -- -- from the law firm of Cushing and Dolan has written a brand new article called designing the perfect income only irrevocable trust that contains language that must be included in your trust and the language that absolutely must not be there coma now for your free copy and give your -- -- the check up at 8668485699. Cushion in Dolan has been helping families protect their assets for more than thirty years let their experts help your family 8668485699. That's 8668485699. Or download the guide on our website had legal exchange -- dot com that's legal exchange showed. I've come. Hi this is more bureau CEO of insure a match and proud sponsor of the financial exchange with Barry Armstrong you more likely used one of the major travel sites to book hotel rooms rental cars or airline tickets they're great one stop shopping sites that are convenient and helpful. Well insure a match the same thing except we provide you with multiple insurance quotes from the top rated insurance carriers to help you shop in one place for all your insurance needs all us today at 84499. Match that's 84499. Match let us review your current auto or home insurance policy and see if we can find you a better deal. Even if you're comfortable with the policy you have it's always a good idea to get a second opinion you may be surprised with what you find all right now and we'll send you our spring insurance guide for free. Complete with checklists for your home and cars that guy we'll help you decide if you need to make any adjustments to your coverage call us at 84499. Match the next 84499. MM AT CH or visit us online and ensure a match dot com. If you're looking for a great deal on a new counter program you should check out the -- rewards program that leader bank is now offering it's a checking account along with the companion savings account and as long as you qualify you'll receive three benefits first you get a savings rate of two point 05% annual percentage yield up to your first fifty K all agree TM fees from use in other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for these statement with the account direct deposit at least 1000 dollars per month and do eight debit transactions per month cult leader bank right now at 8776917900. To learn more about the -- rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards will learn zero point 10% annual percentage -- savings balance. Member FDIC. Business news financial news and what it means to do its own right here on the financial exchange with Barry Armstrong and chuck saga on the financial exchange radio network. We're back in were talking about China we're going to be we our joint. By doctors he Stephens Yankee he is the chief investment strategist for Q point or talk about China just as a way of background though. The doctor served as White House advisor in the Nixon Carter Reagan and bush administrations. And he also served in the US treasurer. Joining us now is doctor Stephens Yankee heist doctor Mario. Hey good morning I'm fine. By the Buick. We're glad to have you guys have talked to us about Chinese seem to feel that that is the greatest risk. Two investment portfolios. Around the world why is that would what is what is your concern over China. Well it went when we look at what it and the greatest impact on US markets that it's sort of comes down to port thing. One is US economy. Second it euros down third is oil price for the that. What does China. And and the first to look like they're relatively good day shape right now notwithstanding the yet been voted in Britain acts that these. European Union. But China is the one that is step most vulnerable. And most likely to be yeah this sort of destruction. What is the mosques in China doctor. Well there there there's a couple of things one is China has an incredible amount. Debt. Debt as a percentage error of the spot that there is back ordered that beepers that. Certainly not a government debt outstanding. And virtually all that China is government debt that is joining app on the side in the economy. In the United States is it about 100. Europe it's eight I percent and and the ability to continue to turn over read it that it is becoming increasingly difficult and China. Which of course increased pressure on their government it to do different things edited and it will cost the sort and it is there content. We we also see what that China is doing where they're creating new territory yeah. Putting sane about little outcropping of rock that. And building airstrips. To impede. Transportation. Through the stat amnesty that amnesty as if you like though. Eight is the loot at about five trillion dollars. And international trade annually. And China's. We get a better control. And that has a direct impact on the US economy and US financial market. China has also been very working very hard in you have. Global stage and he should lower its current. Getting it included in the international monetary but. Reserve currency unit called this special drawing right they just launched. This past weekend in new Asia infrastructure investment bank. Which United States is not part of the all of our allies are. And seeking to make gay its currency. Eight tradable reserved current in the world which of course makes the more expensive US student does that. As well. And that there's there's this whole question that we face elections. You know in the presidential campaign cycle in the United States right now. Well focused on protectionism. And protecting US economy from China production. And at the end of the day that that just creates. Uncertainties. Reactions. Likely retaliation. I mean I haven't China as well and you know it just the simple thing being the currency that the relationship between. At a China and had a Russia. Both coup both of them have actually choose whether to cry that the US. To let all those things together and you see what it. Happen in China what they would like to do they're they're focused on diminish in dispatcher at wellbeing economically the United States. And we rate that is a very hot apparel. And one that we like spirit air only because it has. That greatest opportunity. To let. Maximum damage I'm US on the US economy US financial market. Doctor two questions for the first one I wanna go back to what you were talking about with regards to the levels of debt in China. And specifically do we have any indication as to how much of that debt. May be bad at that point and what the scale of that is compared to some of the previous crises we've seen. Yes the this state owned industries in China duties these old ban. Infrastructure. Production companies go by the government. That have have become unproductive. Real correct. On their overall economic growth because of management while productivity. But still that their apartment knew what keep those folks and Boyd for political stability. That debt owed by those companies is is largely bad debt. That it it can't afford it so should try to just test you roll it over. It can. Did they're banking. And ultimately they need to deal with. And it ended this it is again. And got it. One additional question that I have where that's the somewhat tied to that is. We know that obviously China has been. Effectively manipulating its currency over. Really the last decade pretty significantly in order to try to keep it in a stable range with the US dollar what effect is that having now with what they are trying to do in terms of how much longer can they keep it up based on the reserves they have left for foreign exchange. Well China you've you've noticed. Last group at one of the things that that triggered the US stock market sell off last supper what does that. China booting it currency lower to make it cheaper. Against the US dollar so that the US. China and good being. Traded to the United States are now more competitive. With. Alternatives with US made goods we. Good mate and other countries because they're cheaper they're lesser extent in the United States. China has continued to try to move it in that direction. As it tried to build an economy. And dampened some of the economic slowdown that we see going on which. At the expense. US and and other international producers. We expect that will continue. Thank you very much for your time doctor appreciate your joining us on the financial exchange today. Doctor Stephen spanky he's chief investment strategist for Q point I've got to believe technology your opinion on this but. I've got to believe the situation in Europe just makes China that much more purpose. I think so just because you figure that Europe is another major trading partner of China for exports they'd be export more to Europe than they do to the United States and in this you know raises some pretty serious questions there and the problem is that all of a sudden you start you know not having the same size orders that he did previously go nobody slipped into recession meaning the is that the consensus now that Europe goes into recession. I don't know back consensus but it's my belief Great Britain anyway it's we knew we need is there anyway for great pride to avoid I think that the EU was more risk in Great Britain. ID he. All these European Union countries they're gonna start he'd do canceling conventions canceling meetings that are held in great partners were to relocate those different. Why would you have your view any of your EU meetings why would you why would you start shifting money out of London immediately. London is the financial capital of Europe and they just lost that. Well I think that's why you won't see a shift immediately is because he its he can't simply moved out overnight. It all they did take a long time like those operations that it's gonna take years to move it I mean you you're talking probably a decade. In in order to get anything meaningful done is because I Lanka yes yes but. Financial operations of that size and scale now don't move quickly just because there's so much risk involve an inning. Growth isn't gonna occur there like let's say you know we're gonna hire another thousand analysts' mean out of retirement Great Britain we'll depends what you're talking about because again when we talk about what's happened here. You CAA much weaker pound you may have more exports coming out of the UK actually. Up next are talking about for a one K plans from our insurer match dot com student. You've got to barrier and stronger financial exchange from the financial exchange radio network. If you're looking for a great deal on a new counter program you should check out the -- rewards program to leader bank is now offering -- -- checking account along with the companion savings account and as long as you qualify you'll receive three benefit at first you get a savings rate of two point 05% annual percentage yield up to your first fifty K all of your ATM fees from you some other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for the statement with the account direct deposit at least 1000 dollars per month and do they debit transactions per month cult leader bank right now at 8776917900. To learn more about the -- rewards program at 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume we're awards will learn zero point 10% annual percentage yield on savings balance member FDIC. Hi everybody very are strong here from the financial exchange and I'm joined by Jake too who's a senior vice president. At leader bank. SBA loans. Boy they've been around for awhile but not everybody takes advantage of them and very few people know how they work. They Sperry yes we we to a lot of small business lending its leader bank. Where preferred SBA lender which really means we can maker decisions in house you can quickly within a couple weeks. So we've been very active because a lot of small businesses have been growing in this economy so for example we have a special right now. Which is small business loans up to 50000 dollars were offering a fixed rate of three point 99%. Fixed for four years and no closing cost. It's been a very popular product but more importantly we're really helping small businesses who need to grow and expand their business. There's a lot of uses for the small business loans and give you a couple of examples. So we recently helped the restaurant in Cambridge that was doing so well they actually need to expand in the space next to work. We help them local law firm. Who needed a line of credit to help expand its business sure we help today on local trucking company by a couple of new trucks because they're expanding it so there's a lot of different uses there's usually no limitations on and is longs for a good corporate use but it's 50000 dollars you pay it back over four years he has an interest rate is three point 99%. Exactly. With no closing costs it's a pretty attractive program and it's our way to kind of work with the local community and build small business relationships. Very good folks that's digitally from leader bank if you wanna learn more about SBA loans. Call them all free 8776917900. Three point 99% to pay it back over four years. 8776917900. Porphyry. 8776917900. Or check them out online at leader bank dot com. Understanding how to build a well rounded investment portfolio is one of the keys to being able to withstand market fluctuations that means you need an advisor who can create a global investment strategy that includes the international market many products made in Japan and across Europe are extremely popular in the United States particularly those from the auto and electronics industry it may also be beneficial to consider a foreign nations diversified low cost index fund wore one of its exchange traded funds if you're advisor hasn't discussed the value that exists within the international markets been called the Armstrong advisory group at 803934001. And ask for free guide on investing in international sectors that's 803934001. Securities offered to securities America incorporated member finreg SIPC and advisory services suffer through securities American companies incorporated Armstrong advisory group in the securities American companies are not affiliated and investor cannot invest directly in an index past performance is no guarantee of future results. Hi this is Marc bureau CEO of insurer match and proud sponsor of the financial exchange with Barry Armstrong you more likely use one of the major travels likes to book hotel rooms rental cars or airline tickets they're great one stop shopping sites that are convenient and helpful. Well and share matching the same thing except we provide you with multiple insurance quotes from the top rated insurance carriers to help you shop in one place for all your insurance needs all us today at 84499. Match that's 84499. Match let us review your current auto or home insurance policy and see if we can find you a better deal. Even if you're comfortable with the policies you have it's always a good idea to get a second opinion you may be surprised with what you find all right now and we'll send you our spring insurance guide for free. Complete with checklist for your home and cars. The guy we'll help you decide if you need to make any adjustments to your coverage call us at 84499. Match that 84499. And they. TCH or visit us online and ensure a match dot com. Get your thoughts and questions seeing instantly checks the financial exchange at 68680. This is the financial exchange on the financial exchange radio network. This segment of the financial exchanges brought you in part by the New England firearms academy. If you've ever thought about owning a gun and are concerned for your personal safety or that of your family you can register today for basic. Firearm safety class you can earn your firearms permit. Or your multi state license there conveniently located about four seasons guns in Woburn Massachusetts. You can call it John or Brian. At 7817906462. Or visit and eat firearms dot com for more information. And now it's time for trivia. What was the name of the British ocean liner that was sunk by a German U boat. On May seventh of 1915. For questioning what I respect question. Yeah that was gonna say that's the hardest party everybody knows the answer they can't validate got to spell right if you don't already get enough. 68680 what was the name of the British ocean liner. That was sunk by a German U boat on May seventh of 1950. Chocolat stellar review. If you would be so kind of 41 K plans winking you start taking money out of a 401K plan and when must you start taking money 401K. Yes a 401K plans you are able to take money out without paying that additional 10% penalty at age 59 and a half. So once you get passed that threshold he can pull money out of there you still pay regular income taxes don't pay state income tax but you no longer have to pay that 10% penalty that's after age 59 and half. If you remain active in that plan you don't actually have to start pulling money out of that plant until he retires he can go beyond age seventy and he's still an apt pointing out as long as active okay. If you do retire and if that plan is no longer active in terms of you no longer working no longer contributing to a then at that point okay once you hit age seventy and a half you start having to take money and how come I have to take out. Well the first year what they do is on the government takes all of your 401K and I area since. Add it all up in divides by 27 point four why they picked that number well they call it a life expectancy factor. Okay in reality I mean that's means it's just so clear at seventy they think he could live. Another 27 your book the life expectancy. Factor it's not based on your actual life expectancy but it's you know it's it's based on OK here's how much we think you should be able to take out an order to home most of the money out by the time. So the first year you take out a little bit less than 4% that the second year. They divide the total by 26 perhaps we take out a little bit more than and that process continues all the way through retirement until. You get to 815. And when you get there that's what I call winning. You'll only you have to take out actually over 50% of what's left in 815. They make you take out a little over 51% now worry about it when they get there. What happens to somebody if they forget to take their required minimum withdrawal what's the penalty there is a penalty and it's a pretty steep penalty that's associated with that effectively. What that penalty is is 50% of the amount that you were required to take out so let's say that he had an IRA. And you're required distribution was 2000 dollars UI and you forgot you've got a thousand dollar penalty use okay. Now you do have some flexibility in the first year based on your birthday you can play around potentially take to a one year depending on your tax situation but you're gonna wanna talk to your tax got to see if that's something that makes sense warrior how. Forgiving with the IRS be let's say you were in the hospital. And if the ended December and you just. You're too sick to take it out or you forgot to take it out because of an illness being the IRS to lay off the hook. I've seen it go both ways depending on the severity of the illness in certain situations you know I've seen cases where people about heart attacks and strokes and you know they've said OK just you know getting in on you after January to force. You know there's a case where people of gunning for. You know that that I had the flu and garrison there'll going well okay two million other people out fluent got there aren't these and on time so you know it depends on the severity there. I'll tell your custodians. In advance OK okay could you tell so you had your your money invested at fidelity did you tell fidelity. Hey no matter what happens on November 1 fell to send me my guarantee you'd actually get. Yet you can set that a beacon and a monthly that's probably right and that's what I advised most people typically do just so you don't have to worry about it. It's a look once a year take out whatever is needed if you take out more before hand and say look I don't need to do this you can cancel it obviously. But. It would have that set up because it's an easy thing to do and it just keeps you from getting in trouble that you don't need to worry. On Monday yesterday the Bridgeport based parent of people's united bank said that they will. Yeah a bigger than you think it's they're buying Suffolk County National Bank. And effectively. There adding 28 branches there 2.3 billion dollars in assets one point eight billion in deposits. That is all going to be added in two. People's united bank at this point that acquisition is going to add to some other ones that they have made in the last five years they also bought. Bank of Smith town in 2010 with 57 branches. And you know they've been able to really build up pretty good footprint. On Long Island shall continue that here and people's united. Is built up a pretty big big operation at this point it got 400 branches about 39 billion dollars and assets may have to. It is that bank it's tough for banks operate in smaller standalone yep with the regulatory yeah with a lot of the new regulatory. The new regulations that have come on board. Effectively they haven't scaled them properly to account for smaller banks and so you have a situation where he had all these big banks that you know effectively caused a lot of trouble at ten years ago and penalized if you are in the small you know it's there's talk about relies it is not too big to fail right there wasn't there talk about trying to help the smaller banks financing it has been talk they have actually done anything yet and in any ashamed to say it. It would benefit them and it would inspire competition right in this is an area where you and I've disagreed on the big banks you saying that there over regulate I sometimes and I think that the smaller ones are the more egregious issues I think I agree I think that big banks kinda deserved what they get. I think the small ones up punishments that continue. Until was it the until or Oliver is a cut at at at at at at. Event Rhode Island. Working out a deal with ocean state job lot ocean state job lot had been. Thinking about moving to Pennsylvania as I understand it. Yeah they've been thinking about moving but instead they're going to be undergoing a 49 million dollar expansion. In quonset business park and they're gonna be getting almost eight million dollars in incentives. In in tax breaks from the state. When it's all said and done here they're expected at about a 125 jobs here so if you look at you know the cost the state on a per job basis not awful actually you know you not talking about you know tens of millions of dollars go near it certainly. Is is somewhat costly to taxpayers but again you know you keep in a hundred point five more jobs in the state of Rhode Island. Guys have been into an ocean state assure them and editorials on down those steps. They're very eclectic if I owe you find all kinds it's amazing what you see when you walk through it it's actually really good for pantry items like rice or something like that looked at I find it really three dollars cheaper than a stop shop. I'd like you're just a shock the rugs in in Korea or everywhere around. The final yards furniture fair share. They get they got it all there. You guys are gonna need a more expensive TV evidently if you play PS four and Xbox. Ones with what's the deal with that is. They're gonna be rolling out some new devices actually the next iteration of their op PlayStation four and Xbox one now. The PlayStation one is code named PlayStation four and EO. And it's going to be able to work on for Kate TVs which have significantly higher resolution and your current HD standard does. But he did need to buy new TV in order to get the maximum benefit so they'll work on the lower quality systems now. But you're also you're not getting the maximum benefit if you are operating on anti Syrian need new to me. I just don't get the new device it's as simple as that I haven't played a new video game and probably seven or eight years now. It's been a while I'm still run in my original my super Nintendo from 1993. Still play that all the time. And I still have my original Nintendo he says I'm old fashioned I have my original Nintendo that my mom gave to my dad as a birthday present when I was born. And that's from like 1980 since. Remember those that we go Super Mario Brothers I've got the original styles still work second still plates it's outstanding and there's only two buttons you need to press it was not a doubt AD depth and they are any cars start. There's no well there's no. Stock market rally is really diminished we Europe 220 points in the first hour of trading were now only up 123. In the Dow. And the S&P is up seventeen points. No major news nasdaq's up more than nasdaq's up one point 3%. Yeah in NASDAQ has rallied a little bit more strongly today you are seeing tech as one of the high performers are particular companies like Amazon up nearly 2% today ten year treasuries at 145 track. That type of move so when you see a market rallying but treasuries are not selling off and people are moving at a safe money. Typically is time to because. And it could mean I'd say if if you're thinking about refinancing I would call your broker today your mortgage broker your lender. And say look I wanna refinance and give them a target rate. And you might hit that target rate in about two weeks the banks are gonna wait for these rates to remain low for two weeks before they start lending on the up next were to be joined by Heather had from the Wall Street Journal here's the first paragraph a for article. US regulators are pushing stricter rules for stores that accept food stamps. Ultimately determining which retailers Wein and lose the billions of tax Payer dollars at stake you'll be amazed to learn. How much money is spent on food stamps in grocery stores that's our next topic from our insurer match dot com studios. The markets appeared to be chaos. Keep it right here for all the latest market news on the financial exchange radio network 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 state -- in place only to find out that when it comes time to go into the nursing home -- trust wasn't designed properly it takes five years to protect your assets from the nursing home and you need to make sure that you weren't wasting your time in your money on legal documents that don't work Todd let's keep from the law -- of -- Dolan has written a brand new article told designing the perfect income only irrevocable trust that contains language that must be included in your trust and the language -- absolutely must not be there coma now for your free copy and then give your own -- check up at 8668485699. Cushion in Dolan has been helping families protect their assets for more than thirty years let their experts help your family 8668485699. That's 8668485699. Or download the guide on our website had legal exchange showed dot com that's legal exchange -- dot com. 2016. Has been a volatile year so far for the market and the bricks and vote has added to that volatility hi this is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review is the current uncertainty in the global market makes you uncomfortable than give me a call 803934001. In all reviewed your current portfolio for free that's 803934001. The appointment will take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in investor the last and its anti must book your appointment within the next thirty days 803934001. That's 803934001. Security officer securities America incorporated member camera SIPC and advisory services offers you securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are unaffiliated. Time for banks that pays you with liter maximum reward accounts in 1% cash back with a debit purchases and an extra 10% back when you use your card and featured businesses to qualify for these and other awards using statements direct deposit 1000 dollars and make a debit transactions each month. To learn more call 8776917. To 900 or visit leader bank dot com minimum to open and earn annual percentage yield ten dollars mass prison until late fees may reduce earnings rate subject to change without notice member of the NC leader bank a step ahead. This is a special announcement for landlords chasing down league rent payments and making trips to the bank to deposit checks take a hassle out of -- today with zero and leader banks all mine rent collection tool he went automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more when -- rent your payments for each unit to receive regularly on the same day every month tenants pay nothing in the first six months or free throw landlords visit WWW does he rent dot net to learn more or call 7816418691. If you're casual observer of the stock market we have an interest in net diversified portfolio please pay close attention to the following message understanding how to build a well rounded investment portfolio is one of the keys to being able to withstand market fluctuations that means you need an advisor who can create a global investment strategy that includes the international markets Japan is one of the world's most developed nations and it's a leading manufacturer of highly visible products that are top performers in the air industry if you're advisor hasn't spoken to you about the value of international investing then called the Armstrong advisory group at 803934001. And ask for our free guide on investing in the international sector that's 8039340012. Dirty suffered through securities America incorporated member of the rough SIPC and advisory services are for the securities America companies incorporated Armstrong advisory group in the securities American companies are not affiliated and investor cannot invest directly in an index past performance is no guarantee of future results. Securities are securities America ink member PC advisory services operative securities America advisors. On represented Armstrong advisory group in the securities American companies that. Barry and then chuck. Phillips hey this is the financial exchange radio network. The food stamp this this is a 74. Billion dollar industry. It's called the supplemental. Nutrition assistance program of course it's administered by the US department of agriculture. And we're now joined by Heather had. From the Wall Street Journal to talk about that very program I had to hurry you. So can you talk to us about the changes that are going to occur with food stamps between now and the end of the year. Church that this that the proposed all we're actually quite yet if it's it and come to pass but the government his psyche that is pushing to. Is to adopt these sweeping rules changes which would be another. Most of extensive changes to how the program is administered by pressures and other retailers and decades to food stamps. Terry been around fifty years you know we. The things that. Lower income folks used to supplement to their cushy purchased is there and publicly choose things that are. How different. To bring home or prepare for their families but what the federal government. And let congressional leaders. Had agreed. And found was that. Increasing imagines these dollars looking spent two and you know convenience stores. Liquor stores offer. For liquor obviously but in. Historical didn't have a real variety of fresh food and credit which is that the federal government really want to encourage. So these rules or proposed earlier this year. And lit. Really increased the amount of produce the meet the fresh meat. Gary. That he stored in have to stop to be able to qualify for the program and accept the dollars which is like you said is that really important. Income that's easy. Beheaded as it does it change what they're allowed to buy because the are they still gonna be allowed to buy booze with their food stamps which. He's not supposed to be able to Betty you've seen documented cases undoubtedly were people are using the. Well I I can't really comment on. You know that that doesn't. Focus. But what. That is focusing on which they think it's also not a property that we can't win. If for example there used to we have reached. It selling. Peak the whole piece that for a complete which would be prepared at home. Is golf parties that put its stamp. But they have found is some retailers will have that cold. People buy it with their food stamps detergent dollar to heated up and then people just basically it has like fast food to go off. This is what they don't want they want incurred unit prepare for the both the prepared. Credit for the problem. The other thing they're I would do is. Change. Palo people who get the package and like who were macaroni achieve. There. They're concerned that the main items. Really aren't as healthy I think that they want. The result of changes in in terms. Days you can buy. Like it chicken noodle soup of many different ingredients they're not really sure you know it. It is mostly healthy for you or not these are on the proposed rule but yeah. Does this have to go through congress. Org source is that the president went fourteen farm bill. To congress disagree. And and she group's Liggett agreed it was time to reform the program. Bed they're eating more healthy food that was part of the program and encouraging people to buy that food so they came to a compromise that still do. To increase its summer the requirement through the perishable goods led the federal rules. You know what they were released earlier this year they were vastly expanded bats but members of congress were concerned about though there. Amendment. In this the houses have lit. Basically triple a.'s funding for the additional rules beyond what was that recently agreed upon in 2014 and those. Bills could be voted on. As part of the appropriation process that we would it would have to be otherwise if if they're not voted on. You know that the USDA will take comment it's a lot about comment as to comply imagine on the rules. He'll take that into account and then naval unveiled. The finals. Later this year. Very get very you know I know Heather thank you very much for joining us we appreciate. Petr hadn't Wall Street Journal talking about change is coming to the food stamp program as sort of brought a couple of stats that I garnered yet from the article. 45 million people receiving snapped benefits last year. Average benefit was 126. Dollars and 83 cents per month. That's up from three million people in the year 1969. When the benefits were 42 dollars a month and that 42 chuck was adjusted for inflation. Yeah I mean it in general. The issue that I have with this you start getting to the point where it's like. How do you make these calls on what is okay in what is while we used to do a check back in the eighties I worked and anger for star. And somebody was using food stamps they have a book of food stamps I'm not saying a problem with that I'm saying saying that this store is okay in that sport is. And you know knew if if the stores selling food they don't sell everything that you want you're gonna say look you can't accept this just if you don't you know a 7-Eleven doesn't have the scale to be able to do that the rules used to be prepared foods you couldn't buy. I can roast rotisserie chicken. Way I used to work in Iraq a grocery stores somebody tried to check out your catcher Uga or same thing right with the same thing that if you tried to check out with a prepared meals like potato salad what it would buy into that it would be rejected right there on the on the what's the register right. So I a lot of stores but that's why I guess where I start to look at it is you know were were trying to micromanage this program to the point where. You say look how much are we spending just trying to micromanage the program and make sure that ever wins it can be on here so much abuse of shocked oh I'm not saying that there's not abusive but I'm just saying. I don't know this is the best solution fort saying that this stores simply can't you know except them in anyway. I perform I have no problem if you have a store. You keep your eyes food stamps he should have to go to our growth restore in only by. On prepared. Fresh foods eagle home in the and you prepare should be of the eagle by KFC year's subway here where it in there we're about to chips. Nope it's just not help liking you buy so not help but who doesn't know what's healthy like this we're talking about my own man in line. I used the the it would its tax dollars being spent this is chaired its well being going out I don't think we should be giving it to people for we we we've seen. Numbers of stories as relates to food stamp use thanks for joining into the financial exchange today chuck is not a Tucker Silva and bury our strong. From our insurer match dot com Steve.