tv MONEY With Melissa Francis FOX Business March 26, 2013 5:00pm-6:02pm EDT
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's liv well into their 90s. and that's a great thing. but even though we'reiving longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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david: time to go "off the desk", a store in australia is charging people just for looking. five bucks for browsing to stop showrooming. they will return the fee if they buy something. liz: fighting back. "money" with melissa francis is next. melissa: i'm melissa francis and here's "who made money today". investors who thought cyprus concerns would be a one day blip. bulls are back in the driver's seat. surging home prices and strong manufacturing data sparked a rally on wall street. the s&p 500 just missed hitting its all-time high. that could mean more money tomorrow. if you owned netflix shares you made money today. a top on lift upgraded netflix shares stocks to outperform. they said they could expand their subscriber base.
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pacific crest raising the price target to 225 bucks wow! surging 6% on the news. the man making hands down the most money today, pedro quezada. i don't think he cares right now because he collected $330 million in the powerball jackpot. the 44-year-old immigrant is feeling pure joy. he promises to help a lot of people with his winnings. me. even when they say it's not it is always about money melissa: so our top story tonight. cyprus may have a bailout but cracks in the european union may be growing by the day. cypriot banks remained closed until thursday, that's what they say anyway, a angry residents stormed the streets in protest. is there any light at the end. kun nell? fox news's greg palkot
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reporting from cyprus. greg, what is the mood on the ground right now? >> melissa, i got to tell you the mood here in cyprus is not good. the folks here are still short of funds. now if the banks do reopen on thursday and officials here said that in fact that was not a done deal, sip bring rots will be without banking for nearly two weeks -- cypriots. atms limit to withdrawals still, if they have cash, to 100 euros, $130 billion equivalent. reason for this delay according to officials today, they want to have restrictions in place to try to prevent a run on banks here. it could still happen. now, throughout this city today, there were protests. we saw several thousand students out on the streets. they are worried about their future. austerity moves which all are a part of this bailout plan worked out between cyprus and the european union, could mean a slowdown in this economy and increase
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in the unemployment. also, folks were marching on the central bank here today. people are simply worried about their money. they're concerned as are a lot of people elsewhere, about a controversial aspect of this bailout plan. that is the approach of seizing assets from private bank accounts to help pay for a government rescue. eu officials today were claiming that this tactic was unique but analysts and markets are not too sure. more uncertainty in the global markets. back to you, melissa. melissa: boy you can say that again. thanks so much for that report. the bailout's brutal toll is being felt across cyprus and nothing is tougher than the closure of all the country's banks since the beginning of last week. can you imagine that? earlier today, fox business's nicole petallides asked her cousin who lives in cyprus about it. take a listen. >> what happens when the banks do open?
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>> it likely to be chaos and it will be mad rush to the banks. i'm sure everybody will want to get to the banks to get their money. we're afraid even, there is talks that the systems might crash because after 10 days of being closed the amount of work that needs to be go through the system, of all the banks. so we really don't know what will happen on thursday. >> right. >> if the banks do finally open. melissa: that is amazing. despite all the across in cyprus it doesn't seem like there is any stopping of the u.s. markets. the s&p 500 is practically a rounding error away from its all-time closing high. the dow set a fresh record high. the europe's latest mess can't bring the bulls to a halt you have to wonder what will. money panel is here to break it down. scott martin, chief strategist at you sited advisors. harry dent. and jock otter is editor of barrons.com.
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thanks for being here. scott, first of all, we heard nicole petallides's sister there, that is what a lot of people are feeling like in cyprus. they haven't been able to get at their money. it is hard to imagine what this would be like. what do you think happens and what is the impact on the market or do traders here do not care? >> melissa, probably what nicole's cousin said, absolute chaos and fear of systems going down that really screws things up to put i professionally. here is the thing, you noted it, is liquidity. we can't have these liquidity events or liquidity starvation in 2008 because it totally leads to mispricing of markets. but to your question what that does here? i don't think that much. the cyprus issue is a one-off issue. they have a different economy and certainly a different banking system than even other countries in europe. so you're not going to see this kind of same result happen in italy, spain, france or portugal, number one. number two the markets here
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are operating on their own assumption rates will be low. money has to go somewhere to find return and that is being so. that's why i think they will keep going up. melissa: harry, is it a positive for the market because it makes u.s. markets look that much more safe and attractive? >> it does in the short term but we, the markets should be worrying about europe. europe is in what i call a demographic plateau. we've already been in a downturn. they fall off a cliff in couple years. if they're in this much trouble and cyprus, yes, it's small, but a big symptom what is happening there. here is what happens when individual countries don't have printing presses. the fed here creates a trillion dollars a year to push up bank reserves, push up markets with no demand for austerity, places like cyprus are having to pay the bill through depositers or bondholders or something. so they're feeling more austerity in europe than we are. that's the difference. our markets go up until there is bad news. i don't think our markets will go up much more. there is very strong recess
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stance at 1600 on the s&p 500 just above here. melissa: jack, putting it all together what i've heard so far, maybe our markets look great in the short term because everything is falling apart in europe and we go up for a little while and somewhere down the road we pay the piper but traders don't care about that in the near term. >> i think the next domino is banks in weaker countries, greece, spain, ireland, portugal. if we see a rush on those banks that could start a contagion that could come over here. if they could ton taken this to cyprus, it is not scary to our markets immediately. i think cyprus will remain in the eurozone. it will become kind of a false member. money can't really get in or get out. so this could be the beginning of the end. eurozone. not this year, not next year, but 20 years from now we could say cyprus was the first step. melissa: scott, harry made an interesting point. he said we're sitting right at a resistance point here. do you believe that? does it feel like that or
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feel like it is going higher here. >> no, i actually diseye agree with him. i don't see resistance because we're at rounding error. you have to look at couple things. harry mentions the generational falloff. we have different periods of credit availability. there is all kinds of liquidity in the world and markets. look at money markets. look at 401(k)s still on the sideline yet to come in and chase stocks. interest rates, back in the day when we talk about stuff harry said, okay, the market is at a high, interest rates have not been this low. therefore people will go out of bonds. they will go into stocks. they will buy dividends because they need the return. even pension funds are doing it. melissa: harry, what do you think about that. if you pile on everything scott said and fed will keep doing their trick and propelling market higher i'm not sure there is recities stance. >> here is what is happening here. taking 2 trillion dollars a year. one trillion in fiscal deficits or stimulus and trillion in qe just to keep our economy growing at 2%.
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you're spending 2 trillion to create 300 billion in gdp growth. that is a really bad deal. now the assumption by the fed and economists is, well, things are going to get back to normal. demographics tracks very well long term, baby boom generation has peaked in their spending. we're focusing on spending a weak economy, not just investment and demographics will get worse and worse into 2020. so the fed will have to stimulate more to keep this 2%. at some point -- >> consumer is doing fine!. melissa: jack, settle the argument. what do you think? >> we'll see. we'll see. melissa: what about scott or harry? >> there is lot of indicators beyond resistance we could see a pullback. market is doing well for a really long time. you're starting to see volumes fall off even while the market goes off. that is a bad sign technically. the other reason we could see a pullback, i agree in the longer term i don't see what will pull the market back. i think s&p is one of the better neighborhoods, better houses in a bad
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neighborhood. melissa: time will tell. thanks for all three of you coming on. stocks are not only thing shining brightly. u.s. housing prices soared in january, hitting levels not seen since june 2006. big investors, may be to thank. they're gobbling up real estate and renting out properties almost faster than they can keep up with demand. is this real reason behind the housing come back? here to break it all down, christopher thornberg from beacon economics and real estate attorney steven meister. welcome to both of you and thanks for coming on. christopher, i will start with you. what do you think of all the housing numbers we've been seeing lately? they look really good. is it for real? >> it is for real. it is real when you think about housing, the cost of housing particularly given the low interest rates, housing is incredibly affordable right now. yes, lots of investors are jumping in, because they're jumping in, think about rents today. rents are about 10, 12% higher than they were back in 2006 where home prices are 40% lower. you add that up, you have is
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an obvious arbitrage situation. investors see, all the reason in the world, buy homes or rent them out because they can make good money doing that. of course if they're buying the stuff and renting it out, home prices go up. return tall prices will come back down. it will get us to a more normal equal librium. that is completely understandable and first start of healing process in our market? >> steven, do you agree with that? blackstone, jumping into the business, purchasing 20,000 homes since early last year. $100 million of homes per week what they're doing in order to rent them out. >> with that kind of institutional capital flowing into single family homes which is unprecedented by the way in u.s. history, courts went in as loans in the past but never went in ownership form as it is now, you are seeing a bottom setting and, as christopher said and it is for real because all this money is
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just being poured into housing. what i would say, i think consistent with commission fer's comments is, if you look where housing even with the huge gains just released by case-shiller you're back at 2003 levels. whereas, rents are up, at least at their height or past their height. so you have this wide disparity between housing prices and rental prices and coupled with that, you have these unprecedented low mortgage rates or borrowing rates for the institutional investors. so you do get this arbitrage and you have investors buying up the house. >> but, christopher, that doesn't mean renting is necessarily expensive. just because it's, it's at a level, at a higher level on comparative basis to where it was in the past, maybe the levels were just off in the past. doesn't mean that owning a home is necessarily a great deal going forward? >> well, again, actually, again from a historical standpoint obviously you want to get away from the
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middle part of the last decade. even if you go back over the last 45 years, cost of apartment relative to cost of owning a house is all-time high. renting is expensive. it is expensive, think about all the foreclosures over last few years, it created literally about six million new households all in rental housing. that was way too much of a shock to demand for the existing supply to handle. so rents are at relatively high levels. so, again from a long-term standpoint it is expensive to rent right now. melissa: i don't know. i'm not sure that is the right metric. i don't want to get too bogged down in this. if you look at same size place you could live in and compare what does it cost you to borrow the money and buy the house versus what does it cost you to rent it, that is the way you compare the two things. not on historical basis. who cares about history? i want to live in this place right now. what does it cost me to rent it versus what it costs for me to buy it. a lot of time you're banking on home prices going up going forward. i don't think people are
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banking on that any longer. >> but again --. melissa: hang on. go ahead. finish your thought. >> no. okay. i was just going to say actually again if you look at what these investors are buying and what they're paying for and what their monthly costs of ownership are compared to what they're renting it out for, these are good transactions. they're getting cap rate of nine or 10 on a lot of these properties. look around the real estate industry today. you will be hard-pressed to find those kind of returns in any other class of property. melissa: steven, for average person watching this and wants to make money of course that is what this show is all about, do you buy a dilapidated home to rent it out, buy a home and live in it and or better off being a renter? who do you want to be in this scenario. >> right now it will be very tough to compete with the professional intuesdayal investors swarming this actions. one of the important effects, melissa, we haven't mentioned psychological effect on own occupants. there is pent-up demand. new houses are formed.
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a couple gets married and they're afraid in '08, '09, 10, 11. they rent out of fear, not out of an economic decision on which is the better, which is cheaper. melissa: what is wrong with that? there is no problem with that. >> there is nothing wrong with that but i'm saying in addition to the institutional investors by creating a bottom it unlocks pent-up demand away from institutional investors so there's a double benefit to the market from these institutional investors. is going up? think housing you wouldn't buy. i. >> i think housing is going up. i think there are long term structural problems that may be beyond the scope what we're discussing right now that could whom to haunt us in the future in housing. melissa: hmmm. >> but i think for the short term, even medium term i think housing looks good. >>: you want to be a buyer. thanks for coming on. we appreciate your time. next on "money", stockton, california, versus wall street creditors. a courtroom battle could have drastic consequences for struggling cities and
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counties across the country. details on that next. plus, forget durable goods orders or housing. want to know how the economy is really doing? take a look at the repo industry. it is the economic indicator that no one is talking about. very interesting. we're going to explain that one. much more "money" coming up. ♪ . ♪ your finances can't manage themselves, but that doesn't mean they won't try. bring all your finances togeth with the help of the one person who can, a certified financial planner professional. cfp -- let's make a plan.
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♪ . melissa: so it's wall street creditors versus the city of stockton, california. a high stakes legal battle is underway over stockton's $312 million debt to bond insurers and calpers. rather than rein in its out of control pension costs, stockton is trying to wipe out the creditors. the case's outcome has huge implications or cities and counties across the country. joining us with more is the founding partner with ginsberg mack clear group and former spokesperson for california governor arnold schwarzenegger. aaron, welcome back to the show. this is huge. are you surprised by this turn of events?
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>> certainly not surprised that cities are going bankrupt because of their pension cost. >> right. >> the state is heading in the same distribution. we talked about this several times, melissa. we're spending more every year on pensions and retiree health costs and less on wages. i'm not surprised about this. melissa: dealing with it to wipe out the creditors to leave their pensions intact. the implication of that is that, no municipality will ever be able to borrow money again. if this is the way you choose to go, how do you borrow money in the future? >> well, there is couple of points to be fair, stockton has done number of things to cut back. they increase taxes and cut back on services. people are paying more in taxes for less out of the government. they renegotiated contracts with the unions of the they have cut retiree health care costs. they have cut pension costs for new employees. stockton has done a lot of itself to try to fix it. one thing they're not doing renegotiating trying to cut a deal with calpers which is the pension fund. as it stands now everybody
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will have to take a haircut and feel a lot of pain exempt for the pension fund and calpers. i'm not sure that is fair. melissa: stockton's city manager says calpers has first dib on the money they have, because, quote, if word got out that we were pursuing a different retirement plan, i run the risk of a mass exodus of my employees. seriously? i mean that is what he is concerned about? all of employers would leave? you say they're trying to cut costs and cut services. maybe employees leaving would be a big help. >> they still have double-digit unemployment. still going down. and still a good job for somebody. i'm not sure i agree with that. i'm not a city manager. i understand his point. the fear they have i suspect is with vallejo in california went through, we'll cut everything except for pensions because we're scared to death of calpers. san bernardino, in southern part of the state they're going into bankruptcy. they took a different tack. we'll let the courts figure this out of the calpers or the bondholders, they're all the same boat. court will figure out who is first in line, not us.
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melissa: picking up on that point because san bernardino has done the opposite thing, they have been stalled because the judge, the courts have taken a long time to try and make a decision there. what do you think is going to happen in that situation and how does that sort of bear on everything else? >> predicting this is really difficult. it does not happen. such a unique situation where a municipality declares bankruptcy. so i don't think anybody can predict this with any kind of certainty. we understand that calpers is very powerful. what they told the cities you can try not to pay us. you will end up spending a lot more in legal fees when we take to you court to get our money. frustrating thing, the citizens of stockton and all other cities, tax pay, employees, they have all felt the pain. bondholders will feel the pain of these bad decisions politicians made. i think it is only fair that calpers share that pain. melissa: i don't want to leave california without mentioning alameda county. everyone is talking about it is rewarding the country
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administrator, i don't know how to say her name, she is getting $423,000 a year for the rest of her life. how is this going on in the same state? what could she possibly be doing for the county of alameda that she deserves this kind of pay. have you heard about this? are these guys heading for bankruptcy in the future. if she could live long enough to earn $9 million if she has average lifespan of a woman out there. i mean what do you think about that situation? >> it is incredible. you can pick up the paper almost any day and see the same kind of story. you know, six figures for public employees all across the state. getting paid a lot of money. tell you, melissa. the wages are not as big of a problem. optically it looks bad and is bad. the big problem is pensions and health care benefits guaranty for life. that is putting cities in debt. that is the same path california is headed down.
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if we don't take seriously pension retirees health care, we'll be the same as stockton. melissa: amazing. aaron, thanks for coming on. >> thank you. melissa: want real story how the economy is doing, look no further than repo companies. why the growing pain could mean big gains for the recovery. that's next. plus, tweeting an liking on facebook, it is really awesome, right? is it actually worth anything to a business? one company says it has cracked the code on the financial mystery and the ceo joins us with details that i'm not sure i agree. coming up, do you ever have too much money? ♪ . dry mouth may start off as an irritant.
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like the oral rinse...the sprays have enzymes in them. the whole formulationjust. it leaves the mouth feeling fresh. if i'm happy with the results and my patients are happy with the results, i don't need to look any farther. how old is the oldest person you've known? we gave people a stker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and tt's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the moneyou need to enjoy all of these years. ♪ ♪ . melissa: auto repo companies are floundering after
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flourishing during the recession. for example, the number of repossessions steadily dropped from 2009 when they reached 1.9 million. last year they were down to 1.3 million. is bad news for the repo industry the ultimate sign of an economic recovery and is it here to stay? joining me is the owner of an auto repoet ompany, express results. seth rose. thanks for coming on the show. >> sure. melissa: our viewers want to know who is making money today, how they can possibly make money tomorrow. fortunately for you, if your business is hurting it is good news for a lot of other people? is the repo business suffering right now? >> the repo business has been hurt from what i've seen an economic up swing. you know, we, we were doing very well in 2008, 2009, 2010. melissa: when everybody had expensive cars that they had bought because times were good and all of a sudden the bottom had fallen out and they were not paying for them. >> times were great. at that point they overextended themselves. at that time they lost their
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employments and made it difficult to ray pay them and as a result of repo business was booming. >> auto repossessions fell 27% last year. do you see that trend continuing. >> absolutely. melissa: meanwhile your cost haves gone up? >> yeah, our expenses have gone skyrocketing. fuel has gone up. insurance premiums have gone up. just all around expenses keep climbing. melissa: what do you do in this kind of situation? you have to find a way to make money? are you in other businesses? >> i have several businesses. five different ones. most resolve around the automobile industry, but we, are trying to hold our own. we lowered our overhead and, is used to have seven trucks and much larger facility. now we lowered that in order to hold out until all the smoke clears. melissa: you know, i thought it was interesting to try to get a chrims inside your business. there are shows bit. obviously people are fascinated by it. what do you get paid per car on average? >> it varies. could be as little as $250. as much as $450.
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all depends on the bank and, how much --. melissa: you get a call from a bank, can you get this car and here is where we think it is and what we'll pay you? give me the fair joe and how does it work -- scenario. >> we contracts with lending companies, financial institution. a car lot with anybody with a lien on particular car. they hire us to repossess it. new york state law is other states the customer is allowed to get the car back and reinstate the loan. if they don't, it goes off to the auction and it is sold. melissa: is it dangerous? what is the craziest thing that happened. >> i've been shot at twice. melissa: wow, shot at? >> shot at. melissa: did they think you were stealing the car and mad at you were repossessing it. one knew exactly what as happening. this business given the way things are going? would you shut down?
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>> i will tread water. we have seen it change. hurricane sandy certainly helped. melissa: info hope that things turn bad. >> bad luck is my good luck. melissa: thank you for coming on. we appreciate your time. next on "money," i'd love to tweet and hit the light button on facebook, but is it worth it? what does it mean? one company figures out a way for business to cash in. that ceo joins us coming up next. even guys who went to top schools can sometimes have problems meeting the perfect woman. a new online dating company is making waves across this enormous industry that is generating a lot of cash. the founder joins us. piles of "money" coming up. ♪ [ale announcer ] how can power conmption in china,
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boeing will not conduct certification demonstration flight with safety officials and will test proposed fixes to the dream liner lithium ion batteries under normal flight conditions. they have yet to set a date, but if successful it will be a big step toward giving the 787 back in service. ever wonder how much your facebook like work twitter tweet is worth? like so many people i love twitter, but it is hard to imagine that they have a value. a technology has been developed to determine exactly that, and it could have big dent it -- big benefits. it welcome back to the show. this is what everyone wonders. it's like 10,000 people over a billion people walk into a room and scream at the same time. but is the value? >> as shocking as it is there is actually about you. billions of likes.
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at the end of the day, it turns into -- melissa: can you quantify it? if someone tells me i am an author. i have a book. >> a lot of things that take money to get published and pushed out there and will work successfully. certain patterns that worked really well. it getting a like is worthless. giving a follower can be worthless, but getting your customers to advocate for you. that is extremely valuable. it. melissa: if they like it or something like that? >> instead of you talking over and over again, getting this attention, but if you look to people who consume the product, that -- melissa: that makes sense. have you quantify that? is that with a certain number of
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dollars? >> about 30,000. we see that there are about a dollar. melissa: howdy, but that? >> we look at the edge of the shin and how it turns in the customers that have revenue tied into it. melissa: any product revenue? across industry? >> hugely depending upon mature doing and what products you have . at about the same price. $2 per advocacy action. so every time it happens. >> interesting. you get someone like coca-cola. that's a lot. 687,000 the total were followers. chatter about the products, little. they did not see any statistical relationship between buzz and sale. melissa: --
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>> having 602 million followers make to the biggest in the game but does not translate into money. the campaigns he people said it see there pride on shows which translates into money. yes, they could not see value. melissa: if they have buys out there, that is what e are all after. isn't that what you said, people talking about your products on twitter and facebook? >> someone saying a like you as a brand, actually engaging in sharing the story, that is what translate into money. so i like it does not do as much good as people who are on your behalf sharing your experience. melissa: who would go online and say i just have a diet coke and it was fantastic. what person goes out there and shares their experiences as i love coke. and then sitting there reading them.
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>> they become extremely viral because of the community. melissa: and know what you're saying. people go on twitter and say i read the book. there he doesn't work for every type of business. >> it works at different levels. but in case of the story, seeing those moments trends -- you want to encourage customers. sorry. he did not prime the pump. someone he talks about that and
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how great that activity is. get that to be a bigger success. melissa: that is a good night good for people who have a business. give your customers to talk about it in a positive way by asking them. and then that translates into dollars. i like it. the takeaway. thank you for coming on. here's our "money" question of the day. what do you think you're like sort tweets are worse? we want to hear from more of you follow me on twitter. i did laugh that so many of their responses. next on "money," a fresh twist to the booming on-line dating world. man getting a shot with the woman of their potential dreams. and the founder of sparkology joins us and how it is shaking up this enormous multi-billion dollar online dating industry next. at the end of the day it's all about . ♪ investor. yeah, i'm a serious investor
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$1 billion dating industry by storm. sparkology is what happens when higher education leads the online dating world. male members are only considered it their alma maters one of the nation's top 60 universities, and then they have to pay money to yet introduced a female members. so how does a standstill last? think joining me now in a fox business exclusive, founder of sparkology. thank you for coming on the show. what gave you the idea? >> i was always a hopeless romantic. melissa: not terribly romantic saying that the guy has to be from the top 16 universities. he will pay to get on. >> the reason why guys pay to start conversations, if you look at the dating sites, guys spam, a spin -- send as many messages as they get into as many girls as they can, but that's terrible and so since guys have to pay
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the start a conversation, we stop spam. women appreciate that it. melissa: are you growing, making money. >> we became cash flow positive this past summer now just over one year-end. first wedding is coming a bit too weeks. it's a very exciting year. melissa: we wanted to do this segment because your premises kind of funny, and we were having a good time, but 22 million people out there in the u.s. on the internet trying today. this is a huge industry and a huge moneymaker. this is becoming one of those things where maybe it isn't the best to be the biggest. possibly like television you want to specialize to try and honan and really capture in each >> finally consumers are wising up. having a site with 20 million users just is not great because you have to sift through 20 million profiles. if you have a great pool of wonderful candid it's in the community where people are invited in in the sense of responsibility, there is an
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attraction. so the people are getting smarter and joining sites where they can actually meet the candidates that they want to. melissa: to be taught about in the future, you can only grow this business so much because maybe you don't want to be as big as you possibly can. is there any other nation have thought about getting into? >> well, the vision is always quality. we will never be as big as a mass-market side, but we can take this model to other cities. d.c., san francisco, boston, l.a. we will grow that way. melissa: a couple of people, maybe i don't necessarily want to go with the harvard guy or from one of the top 60. maybe they aren't the best pick. >> it's not elitist. at this point it is harvard, and why you. any school that you can think of quality wises on our side. melissa: think you for coming
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on. coming up on "money," should the cost of your airline ticket be determined by your weight? a new proposal would bring a tax to the friendly skies. details coming up. you can never have too much "money." ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us.
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we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ governor of getting it done. you know how to dance...
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but. melissa: it is time for a little fun with "spare change." we are joined by monica crowley and david asman. >> it is good to see you. >> thank you for having us be one first up, the 17-year-old from london just became a millionaire by selling his newsreader you application to yahoo!. it summarizes articles. we definitely picked the wrong careers, right? >> this kid was a prodigy. he started writing software. this is the one that caught yahoo by surprise. >> let me just mention what this was. he did something called face
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mood that determined their mood by their facebook account. this guy is a genius. >> that is amazing. now, he is taking time off from school. he said they are going to spend some time working for yahoo. melissa: my somewhat like galago camp. this is amazing. >> and economics scholar in norway says by reducing the weight of an airplane by 2 pounds, a piece would be set where underway passengers would be cheaper tickets.
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>> monica would get free tickets. >> there so many problems with this. you have to get in four hours early. melissa: could you imagine him winning you in front of everyone else? where they have the luggage scale and they force you to hop on it and show everyone your weight two this is a free market world. this is the reason that people -- this is their life. this is the perfect way to the world works. everything will be judged on the basis of money. but you're right, the lawyers would have a field day. melissa: the fact the matter is that's why they where he your luggage. >> a lot of it is tied to the cost of fuel. which is on the global oil market. if they are charging you less or more, you know that would never end up that way. because your bills would always go up based on the price of your
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weight. melissa: disputes are not developed a madman. whenever you get a craving for pizza, push the button and it sends a pizza order. what do you think? >> i would have to put in a pie on my refrigerator. >> pizza delivery innovation is coming from dubai. come on. >> there is only one place that does this. and i'm sure they have a huge delivery bill. you have to order it three days before you want to. melissa: good joke, i love it. now in moscow, in order to avoid traffic jams, russia's rich are
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hiring rides in plush eminences for $200 per hour. now the police are cracking down with random checks. what you think about this? david, you were talking about this society. >> we were talking about a libertarian society before. in norway, russia is pure wild west out. bottom line come he can't live like that. i know people who live in russia >> the traffic is so bad. especially in moscow. when you're dealing with something like an ambulance or a fire truck or a police car, something that is a public service vehicle, people's lives are at stake.
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