agree with senator elizabeth warren whether students should be able to borrow from the government at the same interest rate as banks? kelly on facebook said we all should be able to. not just students. david: we have got a lot of responses. more to come. see you tomorrow. >> i'm adam shapiro in for melissa francis. here's "who made money today". anyone that owns shares in tesla motors and its ceo, eel lon musk. tesla crushed first-quarter earnings expectations and posted its first quarterly profit in its 10-year history. the stock skyrocketed more than 24%. hitting a record high. elon musk owns 33 million shares. which means he made $449 million today. also making money, investors in green mountain coffee roasters. it is one of the most heavily shorted stocks in the market but the company reported strong fiscal second-quarter earnings and is expanding its partnership with starbucks. that stock surged nearly 28% on the news. but losing money today,

it's a secret, victoria secret. april same-store sales grew less than half of what analysts expected. unsees noneably cold weather last month is being blamed for a short fall in hemlines and demand. shares of victoria secret's parent company, l brands fell more than 2%. even when they say it's not it is always about money adam: hello, everybody, our top story tonight, a radical new proposal for interest rates on student loan debt. massachusetts senator elizabeth warren wants to give students a big break and let them pay the same interest rate that the federal reserve charges banks. it is less than 1%. now that is generating a lot of reaction because staggering student loan debt is actually taking a toll on our whole economy. it prevents the younger generation from contributing more but when it comes to

the interest, how low can we go? let's take it to our money power panel to break it down. fox business correspondent rich edson who has been covering the story. alex pollack, former the and ceo of the federal home loan bank of chicago. and ann johnson director of campus progress. we welcome all of you. let's start with rich. we understand the need for this. the average student with $20,300 is behind 1% or delinquent on their loans. but is the news so dire that we have to act quickly, rich? >> for several reasons, adam. folks coming out of college right now their prospects are not as good as they were a few years ago paying loans back because they have a job. when you look at federal stafford loans, they're at 3.4%. they're set to double in july. there is a lot of movement in washington, d.c. when it comes to student loan rates. adam: alex, your first reaction to this it sounded kind of ridiculous. the interest ate that the

federal reserve charge as bank when they come to the discount window, what, .75 basis points is a lot different than a student is paying on a loan. why is it different? >> well, you have to distinguish between what's relevant and irrelevant. the comparison between the two rates student loans and fed rates is irrelevant. fed rates are overnight rates with zero losses because they're fully collateralized. student loans are 15 or 20 or 25 year loans which huge defaults and heavy losses. so, the compare the two is not at all interesting. if you were serious and you wanted to know what the rate on a student loan would be, you build it up. you start, what does it cost the government to finance say 20 years, 2, 2.5%. what does it cost to service the loan, 1 to 1 1/2%. what are the losses going to be going forward? 20 plus percent default

rates on life of loan. and you add all that up and especially on loans which are --. adam: you calculated a rate that you could set in stone. ann, he is bringing up a point -- >> that is the only logical way to do it. adam: i will let you say that is the only logical way. i think a lot of people will disagree. ann, you actually pointed out that the federal government makes billions of dollars off student loans currently. why? wouldn't you want a baseline zero sum to keep interest rates low? >> yeah. so the federal government actually does make billions of dollars every year loaning money to students the government borrows money at 2% interest rate and loans it out to students at 3.4% as was mentioned earlier. it is set to double on july 1st to 6.8%. and so the government is actually making billions of dollars off lending money to students. we obviously think that is wrong. students should be an investment we're making. we should make sure students can afford to go to college, get a degree and contribute to the economy in the long

term. adam: so, alex, you think young people who have college loan debt will have some kind of a force to try to push congress in elizabeth warren's direction? or do you think this thing is dead on arrival? >> my guess is it is dead on arrival. we have to add in a lot of other expenses, particularly the expense of heavy defaults on loans which are not underwritten. a more serious thing to do would be to look at the whole structure of student loans and i have a recommendation for everybody to look at. it is called an immodest proposal. by richard george who is the head of one of the major student loan servicing companies. that lays out a fundamental reform proposal for shifting around the way we handle financing higher education from making what are really subprime loans with the consequent losses and bad experience to a much more rationale system. adam: rich, i haven't

forgotten about you, i want to come back to you in a second. i want to ask ann a quick question. isn't there perverse incentive if we keep interest rate loans to incentivize people to take out loans to get head indicated? not that being educated is not a bad thing but kind of fields you need to repay the loan because they don't pay what they need. nothing against art history, if you come out of college with 50 or 60 grand in debt to pay back. isn't this the thing we want to avoid? >> well, look, i think americans know a higher education is a pathway to the middle class. they know that it is really important to get a degree to get a good job. college is a way to get a degree and get a good job and a middle class life. when you look at students who are trying to access higher education they don't have a lot of options. tuition has gone up over 1,000% over the last 30 years. students are filling the gap with borrowing. and i agree that the whole system needs to be looked at. we need to figure out why it

is that we're financing education through debt and figure out, are there better ways to do this? can we control costs? can we hold colleges and universities accountable? can we make sure students have access to pell grants and other federal programs. most importantly can we keep tuition down and support state and local funding. adam: rich, is anybody other than elizabeth waddressing the f student loan debt from the vantage point that ann pointed out? >> sure, congressional democrats, republican pubs and even the white house. what will not map on capitol hill this federal reserve proposal, too political, on capitol hill, what a shock. what you've got like most likely 10-year treasury mark plus a certain percentage point. so on the for republicans this month they will vote on a bill that would set student loan rates whatever 10-year treasury is going for plus 2.5 basis points. that is somewhat what the white house is doing numbers a little bit different. that is about where it looks like it is going.

adam: alex, you were about to weigh in, what do you think? >> well, that's an attempt to do what i was talking about which is build up what the rate has to be from its economic fundamentals and we need to do that in addition to doing the more fundamental look at how the whole system works, including reducing costs, giving colleges, serious skin in the game. because they're just like mortgage brokers who take the money and don't have to worry what happens next. matching the financing to the kind of education you're getting. there are a lot of serious steps you can take. adam: okay. >> but grandstanding about the fed is not one of them. adam: all right. alex pollack, ann johnson and rich edson, all in washington, d.c. we appreciate you joining us today to discuss an issue i think hits a lot of people in the united states. you don't have to have student loan debt to know somebody or be part of a family that is dealing with it. everybody, thank you. >> thank you. adam: next on "money," is jamie dimon the victim of a

witch-hunt run amok? calpers now wants to strip the bankhead of his chairmanship of jpmorgan and the bank may be a target of enforcement action by the feds. we've got all the latest for you on that. plus, forget ohio or north dakota. frack this. illinois could be the center of the next hot fracking boom if regulations don't make it go bust first. don't go anywhere. we have more "money" coming up. ♪ .

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♪ . adam: to quote the famous line, it ain't easy being jamie dimon right now. jpmorgan shareholders are going to vote on whether or not to strip him of his chairmanship. it is a nonbinding vote but the california state pension fund, calpers, is jumping on the bandwagon. it is the latest group to push for the ceo chairman role to be split. the hits keep coming. jpmorgan says the federal energy regulatory commission is going after them for alleged manipulation of energy markets in michigan began and california. as we came on, the

california attorney general filed suit against jpmorgan for fraudulent debt collection. you have to ask is this the final nail in chairman dimon ace coffin or is this a witch-hunt? we have fred tecce and georgetown businessman. gentlemen, thanks for joining me. let's start with fred tecce. is it a witch-hunt? when you split the championship from the ceo rule companies don't always do so well. some wind up getting hurt? >> it is interesting, adam, when you go on a witch-hunt you need to look for witches. i'm not sure splitting chairmanship and ceo position will satisfy federal regulators. as former federal prosecutor, i don't care how many people are driving the ship. what i really care about what positions, procedures, practices that you have in place to insure regulatory compliance. so, from the fed's perspective, i don't see where this gets you. you don't have really have a

dog in that fight. adam: all right. professor angel, perhaps you can address that issue. there are studies when companies go down this road and majority of the companies in the s&p 500 don't do this. there has to be a reason why they don't? >> the academic research is inconclusive. it sound great in theory to split the roles but in practice the people are more important than the job description. if you have, a good lead director, if you have a independent lead director doing their job it is as good or better than having a separate chairman who, if they're not a good chairman, you're better off with a good lead director. adam: professor when i consider the possibility much jpmorgan chase doing this, i think about citigroup. they did it and they operate in that manner and we've saved their, you know, rear ends as taxpayers. is that a fair comparison? >> no. again i think the people are more important than the job descriptions. it is who do you have in the

ceo's position and who do you have as lead director. that is more important. adam: so, what do you think of jamie dimon, professor angel? do you think he should lose the claimship role and just concentrate on being ceo? >> i haven't figured out how i will vote my shares yet but i think you need to look at the big picture. he led the bank through the financial crisis. it is a large bank. they reported record profits last year. yes there have been a lot of scandals a lot of problems but would they be any worse with somebody else at the helm? i don't know. adam: let me go back to you, mr. tease see. from the very simple point. i will play devil's advocate here, under jamie dimon's watch several filings by the occ consent orders the bank agreed they do not have the proper controls in more money laundering. they're not complying with the bank secrecy act. they have had problems with loan processing before they got slapped today by the california attorney general. they have had all kinds of problems under his watch. shouldn't he suffer the consequences? even said in the shareholder letter in

april, may wrau -- mea culpa i take responsibility for this. what is the consequences of this. >> everyone knows that captain smith went down with the titanic. everyone knows the president, ceo, they run the show and are ultimately responsible. but again, from a prosecutor's perspective and standpoint, irrespective whether or not he holds one position, he holds a combined position, the decisionmakers, the people with the ultimate authority, have to make the decision. whether it is in one place or two people or four people as to whether or not as a corporate culture you're going to put the safeguards, practices and procedures in place to make sure that you're complying with the law. if you don't you're going to get letters from this from the fbrc you will get letters like this from the securities & exchange commission. sooner or later you will get a grand jury subpoena from some knot nosed prosecutor like me who wants to make a big name for themselves. adam: they're getting that. >> of course they will get that eventually. my point is this, either he

makes the decision they will straighten up and fly right, i don't care what his titles are what he does that, or he gets replaced and either one people or two people make that decision and fix the problem. adam: professor, you're a shareholder. as a shareholder you said you haven't decided what would be best in this. this is non-binding vote we should point out. what are concerns from shareholders about these continual problems with that particular bank? >> well there is the cockroach story. you see one cockroach you worry about how many more are there. now, jamie dimon has led the company through the financial crisis and, you know, jpmorgan chase has done a whole lot better than a lot of other banks during that period. you know, since you look at his overall record, they have done better than a lot of others. now, any large organization is as large as jpmorgan chase is going to have a certain amount of problems. the question is, the old ann landers are we better off with him or without him? if we put somebody else in there would they do a better

job? i doubt it. adam: that is the question that shareholderr are going to be considering on the 21st of this month. again a nonbinding vote but it will make headlines whatever they decide to do. fred tecce and james angel, thanks for joining us this evening on money. >> thanks for having me. adam: coming up fracking could be illinois's financial savior, but of course there are some roadblocks in the form of regulations and they're getting in the way. has nothing been learned from the experience ii new york and kal for? -- california? we'll drill down for some answers. plus, 400 million tweets go out every day. is the next big investing opportunity buried in the noise? companies scramble to discover a new gold mine for stock investors. we'll give you details how you can get in on out it. do you ever have too much money? ♪

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♪ . adam: we've got an example of money making the headlines. first we brought you this. >> california's monterey shale has about as much oil as they have in north dakota. so that's another state that could be a major oil producer. let's not forget by the way, melissa, despite what is going on in north dakota, which is a fantastic story, bigger story in the last five years texas has doubled their output of oil. adam: and then just a few days after that, we see this. a tale of two oil states ed tomorrow appears in the "wall street journal.". interesting, well-done, melissa francis and "money" team. southern illinois is looking at getting in on the fracking action. it is on the verge of a possible oil boom as local lawmakers drill down on regulations. so is illinois the next center of the fracking boom? joining us steve moore, you

saw from the "wall street journal's" editorial board. thank you for joining us. and ronald duncan from the university of illinois. all of you welcome. let me start with you, mr. duncan, i imagine that the issue being debated in illinois is fracking and economic boom versus potential environmental consequences is that accuratee >> that would be fairly accurate, adam. the constituents we work with on a daily basis really see this with guarded optimism. they're very much concerned about their environment. they're very much concerned about the impact on the their local way of life in their communities e local unitsf government. they're intently concerned what this is going to mean to them. the upside obviously in our part of the state we are, we're looking for this economic development. we, you know, some of our counties specifically targeted in this area lead the state in unemployment, underemployment, a whole host of negative indicators. again we're very much interested in what could be developing for us here. adam: and steve, i mean

nobody doubts the economic potential of fracking. north dakota has surpassed california in oil production? >> that's right. and alaska. adam: and alaska. that speaks volumes there. what do you say to the people who have concerns about potential harm to the environment? >> well, i'm not an environmental expert. in texas where he have they been doing fracking now for five years and are getting rich off it. by the way, adam, the average oil and gas job in texas pays $100,000 a year. so the workers are getting rich off this the people on the land are geeting rich off this in illinois, i know some of those areas where they're talking about doing more fracking. they're very economically depressed area. people can get really, rich, really rich off this really, really quickly. this is great segment you're doing, adam. this is the issue not only in illinois but so many states. california is having big debate whether we should do fracking or not. of course, new york where you are, it has become a

major, major issue. a lot of areas in upstate new york would love to see fracking but the state banned it. it is becoming a big political issue and in capitals all over the country. adam: but let me ask you this. is the industry harming itself? they protect the chemicals, don't identify chemicals they're using. they protect through trade secret legislation. >> yeah. adam: there have been epa studies which would have found the potential to have contaminated water. they are not conclusive but those epa studies got killed because of pressure from the industry. isn't the industry harming itself when it does this, no transparency? >> look, this industry does a terrible job of a, defending itself and really talking about, what fracking is. by the way fracking has been going on for 50 years in this country. it is not actually new. what is new the technology has gotten so much better. and actually a lot of the, when you see water contamination, a lot of types that is the old wells, adam. not the wells they're drilling now. so, look, people are getting

rich off this. it is a multi, multi, you know, billion, potentially trillion dollar industry. we can do fracking and we can do the environmental protection you're quite right is very much-needed. adam: mr. duncan, i'm curious, one. issues in texas they face is lack of water to actually go forward with fracking. does southern illinois have the water resources in order to go forward with fracking? i know we're depleting, the talk which fir. is there water enough to go forward? >> you know, adam, that's a great question and i think there's still debate out there on that. i can tell you in the community meetings that we've been of having throughout southern illinois, the entire community and economic development team with the university of illinois extension, this issue comes up paramount. surface water resources, aquifer resource, not only utilization of water, on order of two million gallons of water to frack a well each time it is fractured

and then perhaps maybe 10 or 15 fractures on each well, you're looking significant amount of water. we're blessed with being kind of at the confluence of two major rivers, the ohio and mississippi. so there is the potential to have water resources available. but the real question comes at what cost? what is it going to cost to do that? what happens to that water, once it is used? adam: right. >> a lot of concern around the back flow of water that comes out of these wells, how that is disposed of and how it is injected back into the ground and ramifications that holds for us. adam: i will give you the last word, but mr. duncan, thank you. >> one quick thing to that. now interesting farm groups are challenging fracking because they're competing for the water resources. so it's a great issue that you brought up about, you know, everybody competing for the water resources and how is that going to play out. adam: all right. ronald duncan, nation very much for joining us. steve moore, saw you couple weeks ago on the hbo show. you held your own.

i was cheering for you. >> tough audience. adam: time for today's fuel gauge report. rbob gasoline futures rallied to a one-mont high. solid u.s. economic data and the prospect of growing gasoline demand helped fuel the gain. gasoline futures are up for five of the last six sessions. apache corp will sell off $4 billion worth of oil assets by the end of the year. this is part of apache's plan to lower its debt and raise its stocks price. investors responded postively to the news. apache shares jumped 5%. senate republicans boycotted a confirmation vote for the president obama's nominee. eight republicans on the environmental committee are completely unsatisfied with gina mccarthy's on answers in a handful of issues. they want greater clarification on mccarthy before allowing a vote to proceed. adam: next on "money", twitter sparked a hash crash

for the stock. the race is to make money off its 400 million tweets per day. how one company is trying to do that and find a break-through investors want so much. "piles of money" coming up. ♪ . ♪ [ agent smith ] i've found software that intrigues me.

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after-hours. its april same-store sales climbed 7%. that is compared to a 2% decline in april last year. it also gave a big boost to its guidance for its first-quarter earnings. but caution, tweeting on the street may damage your wallet. twitter seems to be plagued by hackers and problems. a rogue tweet on a hacked account managed to tip the stock market $136 billion in a matter of minutes. the company's social market analysis says the system could have flagged and prevented the problem all together. so is the coast clear? how do investors filter out what is real and not real on twitter and make some money while doing that? with us to talk about all this, scott martin, chief strategist at united market advisors. and fox business correspondent jeff flock. thank you all for joining us. jeff, let me start with you. what are they doing? how can you look at all these tweets and have enough time to figure out the direction of the market? >> what they do, adam,

called stock market analytics. i spent the day at the company today. they do is make a dictionary of key words and phrases that are either positive or negative. they look at all 400 million tweets a day. they filter out guys that don't know anything. they just look at tweets from financial professionals and key people. when they hit one of these positive or negative phrases they assign a value to it. and then they look and can see is this stock trending positive or negative in the twitters very -- twitterverse. it often leads in advance of a move positive or negative in the stock. seems like a great program. adam: i heard one much your reports. they have 2,000 clients they sell it to the professional clients, hedge funds at $5,000 a pop a month, is that accurate?. >> yeah. do the math on that. they have 2,000 clients. you do the math that's a lot of dough. why don't you use the information for yourself. adam: hello. >> we can make more money selling it. adam: i will take a shot at it. i will let lance roberts take a shot at that first.

lance, sounds like a good idea. at the end. die most hedge funds, clients of this, fail to a perform at a rate comparable to the s&p 500. last year return of hedge funds was it 6%? the s&p was 13.4%. year-to-date some of the biggest funds, green light capital, 5.78%. paulson ad advantage, 4.6%. pergings -- pershing square 4.6%. sounds like a gimmick, tweeting analysis. what do you think? >> i think we need to take a step backwards from all this, the average investor people watching your show right now, they're not sitting home with high frequency trading algorithms and computers sitting on the floor of the new york stock exchange or right next door to it an analyzing this data in milliseconds. we need to kind of think about actually reviewing how our markets actually work. you know over the last few years, the flash crashes that we've had, a lot of the volatility in the markets, are driven by the fact that, you know, the bulk of the trading that happens now is

run by computers, by algorthymic trading, high frequency trading. i'm not so sure in the markets that we have today, that is really a fair place for investors in general. i think this is why you're seeing so many individual investors kind of give up and walk away because they just can't win at the game. adam: scott, he raises a very good point. we've seen retail investors, just look at the volume in stocks, and you can see retail investors are really not there to the tune or level that the high frequency trading crowd is there. how do you respond to that? >> no, i think he is absolutely right. i feel like lance read my notes because that is the thing, adam. i just, you know, he's right though. if you're sitting at home, the individual investor at home that is trying to pick off pennies in say amazon or apple you're in the wrong game because by the time you hit the number, the button to make that trade, thousands of computers have made that trade. the moral of the story though is, just like the hash crash and flash crash years before it was a blip.

if you look at the flash crash in 2010, the market was up after the next couple weeks. the individual investor if you're playing at home i would say ignore this stuff. it is fun to watch it but don't get caught up in it. adam: jeff, i want to ask you a quick question. i think it is great that people can make quick money. what the gentlemen have done with the formula, fine, they can have a it. what how does that play in true investing? it sound like a casino instead of a i'm going to invest in a company to see what happens. they're in and out. they're not investing. they're gaming. >> well, yeah, i don't know if i would call it gaming. i think it has to be a piece of the puzzle, a piece of the puzzle in terms how you make your investment decisions. if you do in fact trade with mora pidty maybe this helps you. maybe this helps with you making money, not losing money. as you guys know one bad trade can sometimes screw your whole day up. adam: ask mr. paulson that question.

it tips you off to a bad stock that there's a lot of negative talk about. you say gee, hedge that position, do i want to sell the stock early. adam: lance, would you follow this kind of a, it seems like, you know, medieval voodoo to me. especially if since if i was a really smart guy i would come up with a algorithm that would launch twitter tweets, influence that algorithm, so i could do what i want to make money off it. couldn't you do that? >> that is the whole thing. this is the fool's game, whatever you come out with, somebody will come out with something that will take advantage of it. let's go back to what the question really was here. can individual investors invest and make money and individual investors, remember, the average american, they're savers. they're not investors. and they're not in this game to pick off a few pennies here and there. if i'm buying a stock because i believe in the company and the fundamentals are strong, what do i care whether the stock misses earnings by a penny or makes earnings by a penny if i'm

investing in the stock for a long-term investment and i'm buying value? none of this matters to me. but what does matter, here is where it is important, we have margin debt now back at record levels, back to where we were in 2007. the problem comes in when something like the flash crash occurs, that starts triggering margin calls and then you cause a collapse in the market that happens so quickly, that individuals can't react to hedge off or to sell or to get out of the market. that is what we saw happen in 2008. we've got exactly the same scenario set up now. all we need is a catalyst. adam: scott, are you worried they call it a black swan event but some unforeseen event is going to trigger some kind of a massive sell off? computers would react so fast that nobody would be able to make heads or tails before we drop precipitously in the market? >> that is potentially true and probably due to happen, right? seems that stuff happens every few years. but adam, i kind of disagree

with lance. going back to 2011, that flash crash the market was up next couple weeks and next couple quarters. that was the biggest bull run, right we've had in the last three or four years. i don't know, adam. i think people should not worry about that. i hope if it does happen we have cash on the sidelines to use to start going in and buying. >> if you have cash on the sidelines earning no interest thanks to the federal reserve. on that i get the last word and fat word. how's that? all three of you thank you for joining us. we'll watch this. we'll tweet about it. how's that? up next you don't have to buy a house to get in on the real estate recovery. a top expert gives a under the radar plan how to play it without taking a out a second mortgage. this is something legitimate you have to hear about. no high frequency trading here. at the end of the day it is all about money. ♪ . (annouer) scottrade knows our clients trade and invest their own way.

with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ottrade. voted "besinvestment services company." welcome to the new buffalo... whe new york state is investing one billllion dollars to attract and grow business... where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get to grow or start your business, visit thenewny.com we replaced people th a machine.ner,

what? customers didn't like it. so why do banks do it? hello? hello?! ifr bank doesn't leyou talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

♪ . adam: we keep talking about the housing recovery but is it real or not? tomorrow fox business is throughout the day but here on "money" we want to give you a little head start now. re -- real estate investment

trusts or reits may make your eyes glaze over. they make my eyes glaze over because i don't understand them. my next guest says it is a great way to get in without make needing a mortgage and you may be missing out on some easy money and pretty safe dividends. brad thomas joins us right now. he is managing director of capital markets realty out of georgia. >> right. adam: you also have a newsletter. >> i do. adam: that explains reits for people like me who don't get it. very simply, what is in maybe, 25 seconds, what is a reit and how do i get in on it? >> sure. adam, reits by law must pay out 90% of the taxable income in the form of dividends. i use the word must. use another word, forced. they're forced to pay out dividends. that is perhaps the only sector today where dividend are such reliable forms of income in the form of dividends. adam: essentially what a reit is, it is commingling of several hundreds, maybe thousands of different properties from different companies and it's, it's the

physical property, the land and the building and either the rent or the money kicked off from that is going to the reit then is paid out in dividends? >> sure. reits were formed in 1960 as a way for the average american to invest in brick-and-mortar real estate. a pretty simple model. you are buying rent checks which are converted to dividends which investors love today. adam: last segment i had fun talking about hedge funds and billionaires. green light capital, david einhorn, april, up 5.7%. paulson advantage plus he had several funds doing much better, 3.4%. er pershing square, bill ackman up 4.6% this year. how would a reit compare to that kind of return? >> you can't compare. reits by far are the most amazing asset factor. reits today return 15% of total return out of all 143 equity reits today. there are amazing returns. when you drill down some other sectors there are

incredible opportunities. adam: there isn't a reit market. where do you go to buy a reit? where do you find a reit? where do you go to research a reit? >> i like it to be my newsletter and website perhaps. there are certainly a variety of places you can research reits. "wall street journal." number of publication. >> how do i buy one? how do i get? >> call up your stockbroker. any fidelity account or money market account. they're publicly-traded securities so the average investor can own the stocks. adam: the name of the newsletter and if people want to find it on line. >> the intelligent reit advisor, play on words, ben graham, intelligent investor. adam: some investors if you follow benjamin graham they're looking for yield of 4%. do reits do that on quarterly basis? >> sure. you have to remember reits pay out dividends and there is also growth. dividends and growth is total return. on average, reits pay 3, 3.1% dividends on average. however some of the sectors, for example, health care

which is a very hot second or stand alone or triple net sector pays 4% in terms of dividends. add to that the total return component, that is amazing story. triple net reits are paying average 30% total return. that is dividend plus growth. there are amazing opportunities in the space. adam: brad thomas, thanks for joining you, my eyes are less glazed. something we all need to take a look at. have a good day. >> thank you. adam: coming up, imagine owning john lennon's ferrari. the '60s music legend, ferrari is about to hit the block. can we take up a collection? i would look good. what it will cost to get lennon's instant karma? you never have too much money. ♪ .

welcome to the new buflo... where new york state is investing one billion dollars to attract and grow business... where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to t new buffalo. welcome to the new buffalo. welcome to the new bfalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow or start your business, visit thenewny.com how old is the oldest person you've known? we gave peop a sticker and had them show us.

we learned a lot of us have known someone who's lived well into their0s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

when. >> it is time for some fun with a "spare change" we are joined by julie and david. the ugliest sports car ever produced 1965 ferrari up for auction expected to go between 155,000 and $220,000. it may be a good idea to get it because the car maker ferrari is cutting

production and they just announced they are limiting sales of new cars going forward to keep them being exclusive. julie? deal like that john lennon for rory and what about keeping it exclusive? >> how much more exclusive can you get? i will say not everybody can drive a ferrari like you and i. >> i will not contribute for you to have one. i would not take this out of bet. >>. [laughter] first of all, john lennon o.and steve mcqueen had a 1963 ferrari that wintu point* 3 million so i think a hundred 55,000 is a good price. >> and chevy impala? >> maybe the chevrolet vega. [laughter] something we will bb using students created this at

umass and hearst the black box for human beings to carry around and it continues the records on a day and one day video clear surrounding environment plus the audio can be used as evidence in court if you are is some kinn of dispute. is this the next big celebrity accessory? brand celaeno already has there's. >> is in their prohibition of recording without their knowledge and using it in court? >> it is the providence or jealous boyfriend or girlfriend. to record everything. >> this is already happening in cleveland hospital is required to take advantage of lower health care to be monitored already for lower prices. >> let's move on to bad news

for mark suffered at&t is now selling the phone -- facebook phone at $0.99 a evidently it was a total flop at $99. they figure it is a giveaway. >> i feel all that the teenagers are like yesterday's like facebook has too many people you don't want to talk to. [laughter] >> i think eventually zucker berg will find the right formula. idle think it is this obviously they are giving it away. i don't think it succeeded i don't think this will be a success but facebook will be because shepard is another steve jobs there are not too many people like him around the.

of some people say there is something different and he really has a golden touch and eventually they will find a way to market it. >> i am with julie i need to know what people are doing. i don't think it will go away. >> i don't care about your inquiry birds. [laughter] speaking of people but relented go there but are you the american idle san? all four judges have been fired mariah carey, make demonized comment keith durbin and randy jackson apparently mariah carey was making 80 million. i would replace them with lindsay lohan because she is a train wreck. [laughter]

ozzie osborn, madonna she is so caddie and retraction everybody i like carrot top top, slave the slaves and kathy griffin. >> you are going for the trade back i think americans like the nice people you can get along with. adele, lady gaga and jennifer had sent remember she came in second not. >> they are getting red of the contract rethink our parents could afford sir john mccarthy? >> he doesn't have to worry about money at this point*. >> if you want to hang out and judge people?

american idol we are related to news corporation. that is all the money we have today the oil report is up next. >> hello everybody. tonight, a case of karate capitalism leaving homeowners out in a cold while people are not getting the money they are owed. we have the pros and cons to the disability insurance and which of the major airlines is best for frequent fliers? we're on the case. "the willis report." gerri: we have all that and more by first the top story tonight, lisn