tv The Willis Report FOX Business May 11, 2013 5:00am-6:01am EDT
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good job next. gerri: hello, everyone, i am gerri willis. tonight on "the willis report." business and real estate. we have the best places to buy in the best places to make money. also, a new warning about the market. investors borrowing more against their stock portfolio. in a florida teacher is fired for revealing a little too much. is it legal? we are on the case on "the willis report" ♪ ♪ ♪ speak to our top story tonight is the business of real estate. whether you're buying or selling or even just stayi put.
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we have the best advice around. conditions for buying and selling are better now than in years. in some cases like arming rates, things have never been better when it comes to mortgage rates. we'll show you how to profit from it. with me now is one alexander. monte moore, president of the more group and nashville and josh altman in los angeles. josh, arting with you we have a red-hot market in some areas? the latest numrs show prices up 9.3% in the biggest cities. how long can this continue? >> well, hopefully very long. i have to tell you that the market is on fire. the high-end market, breaking records right and left. you have affordable housing in places liksilverlake and clover -- culver city and los angeles. but can you close fast enough and are you ready to compete. nicole: monty, is it like that
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in nashville. what is going on in tennessee? >> it's a great market. those kind of numbers and that connectivity, the last 22 months in a row we have seen continued steady growth and we are 27% higher this month than this time last year. nicole: gerri: this is like a red-hot candle. the most expensive house was sold in miami in the entire history. some $47 million for one house. how is miami doing? florida was a mass. is it coming back? there's the house he sold. >> there it is. the miami market is on fire. we are talking about miami real estate. we have all of the whole world's wealth out here trying to buy these hzel properties. we have broken this year alone
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the highest price for a condomium in florida history for $34 million. the highest recorded sale price per foot on condominiums as well as single-family homes. gerri: ice on your notes, all of these different projects in miami. we should say 20 or 30 condo projects under construction right now. it is amazing. >> over 120 projects going on in the area as we speak. gerri: okay, over to you, how to do i buy a? tell me about strategy. people know the market is on fire but they don't know how to play it. >> told you this last time i was on the air, the key is a good broker, a strong broker that has extensive knowledge on inventory and is able to market quickly. quite frankly, if you're not ready to go, the deal is going to go. gerri: it occurs to me that people are having to face a lot of buyers have 100% of the money that they need to buy a house. we have read stories and you can
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tell me this if this is true that some realtors hold back the best properties for the all cash offers. is that true? >> timothy is a lot nicer to deal with. we don't have that kind of stuff to deal with. gerri: my mother lived in knoxville for a long time. >> do see people holding their properties for all cash offers? >> typically in today's environment, yes, most of the buyers are cash buyers. what you need to understand is that miami was one of the hardest hit markets during the recession. since then, we have grown tremendously. e of the hottest destinations in the world, what you're seeing the buyers that have been on the sidelines for the past four years are all running to purchase property and paying pay cash. so it's not really a boom that's going on. gerri: i can think of another red-hot market.
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and that is in los angeles. is it possible that there is a bubble building and some of these markets right now are prices are maybe a little too high and it is because inventories are tight? >> i don't really think so. there's been alot of people sitting on the sidelines for the last four years. they are ready to borrow buy a house. i'm buying houses now, with a lack of inventory, the cheap money, it's a great time to buy. the difference is that people can afford it now as opposed to what it was five years ago. gerri: i'm going to tell your story here as well. you sold the most expensive house in california. 20 mlion for one-bedroom house. that's great stuff. over to you, monty, you are in a normal market like a lot of our viewers are in. what kinds of things should people be remembering right now? let's talk about the flip side of the equation, people who really want to sell right now. >> it's becong more of a
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sellers market. i don't know if these guys can comprehend or even imagine. my medium price is $185,000. if you think about this, those are awesome numbers that we are talking about. did anybodin the country can afford to live in nashville and from the absolute best places to live. nicole: i think you guys all have great markets. warren, over to you. a lot of people are used using equity in eir own homes to grow the real estate portfolio, can he do that now? are the banks at all working with people to help them buy real estate? >> they say that they are. it's pretty tough in today's climate. but if you can if it's within your means, go for it. gerri: or the banks working with people? >> yes, they are. you don't need to overleveraged yourself. that's what happened last tme. be happy where you are, get a great house for geochemistry
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there for the next five years. that's going to be the best option. no need to overleverad and by this and that. you can always leaves out are property of force comes to worse, especially when payments are low if you walk and now. gerri: we have about 5 million houses for the year, which is back to a more normal time and real estate market. you think we will continue to ve cycles? are we going to even out and have a steady marketplace? >> i think the winners have made it difficult enough that we're going to see a steady increase. i don't think we're in a bubble whatsoever. i think we will continually see this growth, people are tired of sitting back and waiting and wondering what the economy is going to do. now we are seeing the action take place in middle tennessee. on a consistent gradual basis and a healthy tend. gerri: 3.4% of the country, it is time to go by. i want to see the reels they do
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well. thank you for coming on. great job to all three of yo. an all-star panel tonight. thank you so muh. gerri: we want to know what you think. here's our question toght. is your home worth more now than before the meltdown? wauconda gerriwillis.com, but on the ght-hand side of the screen i will share the results of the at the end of the show. we have more coming up. how splitting his back. how'd he do that? and before you stick up for sale sign outside your house, we have the best renovation for inside your house to a value. the capital one cash rewards card
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gerri: welcome back to the daylong coverage to the business of real estate. a quick code ofpaint or gutting your entire kitchen, it can remodel your home's value. with more on this we have kiersten bakker. welcome back to the show, it's always good to you and. >> always good to be here. gerri: you know from variants what are of the best interior renovations to do on your home? >> well, the best is what is going to be the thing that gives the best first impression. we know that it kitchen and bath, but you have to hope buyers from the get-go. it's an emotional thing that you are looking for. so as always, very important. >> here's an interesting fact. homeowners spending but more on
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renovations in the year before. they're going o spend even more. does that make it more difficult to get done or easier? >> i think that the good contractors are available and working with good homeowners. it's a really good time to get that done. 53% of homeowners really think that that is going to happen. but you have to pick the right people, you have to make the right choices. so invest in the right place in your house. >> i completely agree. we are doing it ourselves. my favorite room in the house, let's face it, this is critical to buyers. they want to do the right thing. is it still all about granite countertops and they build bridges? >> i think it has a lot to do with top-notch energy efficient appliances. i'm not soure that it's about granite. i think we are seeing alternative choices, green choices, organic choices, things that are going to function and hold up over time comes they
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that is going to be timeless is a really great way to go these days. and then the functionality of it, how many people can you fit in our? it's been such a ghering place. so do have a place for people to set and enjoy while you are preparing dinner and what are the cabinets during? that is an expensive part of the kitchen. if they are closing and jamming your figures come it may be time to replace the cabinets. gerri: you said work triangle. tell us about that. >> working triangle between the oven refrigerator in the thing, how you navigate back, if you're having to go all the way across the kitchen, even if it is the wrong direction on the bridge, the swing on the fridge door, it's really important to make sure that you are checking how this is working.
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>> one of the things you said, when we started here, is that it's all about the first impression. what about the entryway. >> buyers make up their mind about a house from the moment that they pull up to the driveway if they really like it. just based on how the front dor fits, what the landscaping is light, if it's been well maintaed. even if you haven't maintained your house. start doing it before you put it on the market and make sure that it's clutter free. so you want to make sure the get rid of all those things. >> okay. allowing the buyer to see themselves walking througont doy walking through the front door. >> i have heard some realtors say that. you know, it brings you into
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that house. one of the things that i want you to address, because i think this is really important, some people make improvements and spend a lot of money on things and getting absolutely no bang for their buck. what are the improvements that will return the money when you sell that house when. >> there is no question that updating your kitchen and bath are really safe that in terms of a good return for your money. good landscaping is a good return for your money. the easy things that are tangible that some homeowners can do themselves, which is painting, that will be a great return on your money. as soon as you're out of your comfort ne, unprofessional work quality that doesn't like it was done well, that is actually going to degrade the value of your house. so soon as you're out of your comfort zone, it's time to bring in a professional and ay them to get it done. gerri: okay,, so, so i have the triangle and are neutralized and a making sure that everything is upgraded to the best ability that i have possible. kiersten, thank you for coming on. it was great to use.
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>> always good. i love real estate. gerri: i did too. we are on the same page. >> later in the show, a warning for investors. the levels of margin debt reaching new highs. next, we answer the question how do you do that. we have some us your tips on getting the most bang for your buck when flipping a house. from peter pasternack there he is righthere. don't go away. at od, whatever business you're in, that's the business we're in
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gerri: buying your home, selling it for profit. the worst crisis in 80 years. flipping a home could boost your bottom line big-time. how do you do that? joining me now is peter pasternack, host of the show flip this house. before we get to e housing, can you tell me that the safe thing to do right now? because this cld be a bubble economy and housing. >> well, thank you for having me on the sho. you know, the thing about this
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is that so many people see things on tv like our show, and they think it's easy. they see 45 minutes and then looking house is a 12 week process. if you realize the difficulty and the challenge is to know what you're doing, yes, you can make money. but it is not forhe light of heart and people who don't know what they are doing. gerri: were the biggest mistakes people make when they try this r the first time. >> i think the fst mistake they make is that they forget this is a business. and just like any business, if you don't make money, you' going to be out of business. so one of the difficulties most pele have when they flip homes they think it is their own personal resident with a two try to flip. there might be 10 things you need to put in a house. but when youare flipping, you
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may only put five things. you have to make sure your house is competitive so that when people look at your house versus someone else's money will stand out. but you don't want to put too much in there. everything else are you putting comes out of the bottom line. gerri: real estate is local. it makes sense to think a the area you are doing the same. are their cities and towns and metropolitan areas that are best for flipping a map. >> well, let me say this. many are transitional neighborhoods. you want the biggest between your renovated an older home. those are found in you transitional neighborhood. so regardless of what cityou are in, those are where you want to start and those are the top ideas. gerri: what you mean by transitional? >> those are some areas there habeen work done we have east
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atlanta, we have grant park. gerri: i'm not entirely confident how many times flippers are successful? >> i would say nominee. just like any business, it's important to make sure that you are teaming up with people who have maybe done it before, and getting good advice, building a strong team, which includes your realtor, your contractor, and absolutely your lender. gerri: it takes a villa. thank you for coming on the show. it was a pleasure speaking to.
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gerri: all right, so what are the best places to do this? the answer is tonight's top five. the first one is omaha nebraska is number five. clippers made more than $7,100,0 in profits in 2011 the volume more than doubled. we do not come in number four is washington dc. demand for houses is rising in the tions capital, leading to nearly 2000 homes slipped. number three is oxnard, california. one inevery 52 homes is in foreclosure there and that makes them ripe for flipping. number two is arizona. gross profits for house flippers in this area to $87,000. the number one city to put the house in is new york city. really? house flippersre making profits of more than $118,000. coming up, wouldou want your child taught in school by a bikini model?
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it must be friday. we are showing women in bikinis. and more investors are borrowing against their portfolios to buy more stuff. what should you do hat? looking out for you and your money coming up next it's as simple as this. at bny mellon, our business is investments. managing them, moving them, makinghem work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. instment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon.
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you will lose 3 sets of keys 4 cell phones 7 socks and 6 weeks of sleep but one thing you don't want to lose is any more teeth. if you wear a partial, you are almost twice alikely to lose your supporting teeth. new poligrip and polident for partials 'seal and protect' helps minimize stress, which may damage supporting teeth, by stabilizing your partial. and 'clean and otect' kills odor-causing bacteria. care for your parti. help protect your natural teeth. how you doing? my name is steve. my family's lived in this neighborhood for years.
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recently, things got so tight we had to go to our local food bank for help. i lost lot of sleep worrying about what the neighbors might think. that is, until i saw them there, too. how'd i do, steve? a little stiff. you could have done a little better. what? come on. you know, i have an academy award. yeah, but not for playing me. announcer: play a role in ending hunger. visit feedingamerica.org/hunger and find your local food bank. >> this is "the willireport" with gerri willis. >> with stocks hitting new highs, the headlines on wall street hasn't been this good in years. behind the headlines, there is a troubling new development. take a look at this one from "the wall street journal" this morning. they are borrowing against their portfolios as the market goes
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up, investors are leveraging up with it. borrowing against the kings in their portfolio this newfound love of leverage comes with investors to help us break it down your here is the president of amg capital. hillary come welcome back. >> i find this kind of troubling. call me cazy, but is this a sign of a great bull market or we are coming to the end and it's all going to blow up women. >> it can be a fine. it means that at some point, it is long-term iequities and across the bow of the board. they are borrowing against the money that they have in their
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stock accounts. gerri: does this tell you they can't get money from lenders are banks? >> i read about a person who did renovation on his house. >> first of all, it's anywhere from 1% to 3.5%, maybe 4% to borrow part of your portfolio. you have a dollar, but you borrow $2instant. i know people that don't want to sell the underlying stock because they ain't that they are stalking the gp.
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we want to talk about how this can rebound against you. >> okay, when youthink about spiral downwards. let say something happens, it's a very tenuous situation, and our currency, the u.s. currency keeps getting put up against the japanese yen. all of a sudden the market starts to go down and it's going to sudden say to the individual investor, we are just going to sell the stock. and then the brokerage goes itself in knots when you have these stocks, especially wh the big list with the big fast money, it's also being forced to sell. >> is complete in a bad way.
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>> like honeywell and others that hit a new high today. when the market goes down, everything goes down. and things go down much faster than they go out. so the rule is to be careful and weight. >> thank you for coming on. it's always great to see you. gerri: markets ending, but stil solid gains. about 15% this year. the commodities, the dollar is strengthening. and the post office says it lost nearly $2 billion over the last three months. >> and here is a big-ticket item
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like a lawnmower and home appliances. in order to qualify, customers must have a monthly income of at least a thousand dollars and a valid social security nmber. the irs apologizes. they say they are sorry for conservative local gups with the word tea party or patriot in their names. the head of the uniosaid it was initiated by workers in cincinnaai and it was very wrong. that is wild and this is rt of the top stories on fox news.com. president obama and his ocus on jobs and theconomy, spending the day in texas, pushing his government agenda. as lou dobbs pointed out last night, he may have picked the wrong place to press his case. you governor rick perry and senator ted cruz give the perft example of what republicans are doing right.
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>> the national unemployment rate is 7.5%. so he goes to texas where it is 6.4%. i don't know who is talking to the president, who h his ear, but that doesn't make a lot of sense. another problem for the president is thatexas has a right to work sate. as wright work labor laws, no state income tax. when it comes to education, texas has the nation's fourth highest high school graduation week. 86% of texas students graduate. gerri: i have to tell you that a lot of good things come out of texas. >> you are right. well, the president, to me it is just utterly crazy. because texas is booming and he should be down there listening to those folks instead of preaching to them. we are following the president
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again in his defense of obamacare. gun violence that is, law enforcement, the denver police department, newtown, connecticut families. gun control. now he is using women t tap obamacare. you know what women really think about that. gerri: i certainly do. gerri: what is on your show tonight? >> the president of cold where -- coldwell banker. and what his outlook is for the industry nation. it is certainly important to our prosperity. and cody wilson. he has an online blueprint and
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we will talk about what makes an anarchy as to exactly what the government tells them to her. gerri: still on for the record, lewis from texas. this sunday is mother's day. fothe president is a perfect opportunity to campaign. mr. obama is promoting the benefits of obamacare as we just talked about. senate republicans point out that women actually face a-train whack from obamacare. and women are staying single longer because obamacare taxes are higher for married women. and you could lose some subsidies if you are wealthy. number two is that you may be able to keep your children on your plan longer, but it's going to cost you.
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they could changee finally, women make uptwo thirds of the medicaid roster. maybe for father's day weekend of this document. next, we have this question. is it legal? a teacher fired for opposing in a bikini as part of an outside modeling gig. our legal panel breaks it down coming up next. 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. 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,
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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. ♪ to enjoy alat od,hese years. whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. very logical thinker. (laughs) i'm telling you right now, the girl back at home would absolutely not have taken a zip line in the jungle. (screams)
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so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action viagra. talk to your doctor. no child is a lost cause. because stable loving family can help any child succeed. i don't think i'm a lost cause. i'm just a kid. if you agree, find out how you can help. at youth villages.org gerri: a florida woman second job as koster her teaching job.
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this woman was fired up for modelingn a bikin care to weigh in is an employment law attorney. lis wiehl, what you say? >> i think this is outrageous. >> from their perspective, there is absolutely nothing that should be a reason for firing someone. just because she is teacher. gerri: the students are looking at these pictures, and they are supposed to go to class the next day and have respect for her?
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>> she wasn't on the internet when she started teaching. >> why did she change her name? >> that remains to be seen because she is a public employee. shcould have due process rights. however, more importantly, for the reticular issue again, it isn't anything that any child or parent would not see if they walked out right. >> this is a code of activex. by virtue of their leadership capacity, teachers are held to a higher morals than it intercommunity.
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>> yes, a lot of people hae this. it just means that she has to be held, not just on her worktime, but being in a way that students are going to be looking at her, saying that that is not the way it should be. gerri: so let's say she says i'm thinking about doing some extracurricular modeling area that it's going to be in a bikini. do you think you should do that? >> it is planned for the worst, hope for the best, but absolutely tell her not to. >> however, since she had done it, all right, since it's really nothing that is in the sense of her weing a bikini, she wasn't at a strip club, she was in pole dancing, something about
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everyday life. >> you're making my point, with which is going to the school and sent to the school, is this okay. is it's okay with the code of ethics. >> would you defend her f she wanted to sue the school? >> well, first of all, it would end up on several her. if she had due process rights, they would have to really bring her up on charges. in that particular case they would have to show that this is something that isn't appropriate. and the bottom line again is that yes, it could come up to bat. but if you area tenured teacher and she's a good teacher, there's nothing that says she's problem performer,. >> are twitter feed was 50% one-way and 50% another. some of them said he would see a woman dressed like that on the beach and others would say, i
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don't want that woman teaching my kids. >> she's getting paid money, it is different if she's on the beach and the kid happens to walk by and se her. >> if we were in the 1940s in the 1950s, yes. but in this modern ra some could think that. >> the actual point that i have again is by actually placing her in the front page on this particular program, i think that one really has to look at the motives. school year is over and they put the spotlight on it. >> i don't see how you can attribute that. it is inappropriate for the kids, we really want you having
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taking classes with reading and writing and arithmetic to thank you for coming on. gerri: i feel so old-fashioned. [laughter] okay, onto the stay in business. in 1962, the incredible hulk came out. a combination of frankenstein and doctor jekkll and mr. hyde. it kept turning the whole green because of such popularity. then they released the number one box office release, the incredible hulk film grossing 260 million worldwide. it is worth $19,000 and it was issued today, may 10, 51 years
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ago. next, something that every woman needs. statement jewelry. you won't want to miss these withhe spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? [ crows ] but maybe the problem isn'isn't your lawn. introducing the all-wheel-ive mower from husqvarna. we engineered its uniquerive system and dual transmission to handle hills&
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launches storyline back in 1998. his collecti is featured at luxury retailers all over the place. bergdorf goodman, saks fifth avenue, his unique designs including opera, lady gaga, carrie underwood, he matthew >> you are a very young man. you have a lot of success really quickly being in these major sports. how did you break through? >> i was actually very lucky. when i visited new york, she was nice enough to call me when i worked at bergdorf goodman. gerri: i am wearing a gorgeous bracelet right here that matches my dress or you have a number of bags here. tell me a little bit about tm. >> all of thh bags have stones and sapphires.
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>> this is the hot thing right now. is the demand high? >> it is mor and more important for people to have statement pieces in conversation. >> i just had on a bracelet that oph wore once. >> tell me about the materials. >> bobo was wearing this on the cover of her magazine. >> i think this is cool. >> that is enamel. gerri: what are your inspirations here? so your family collects arts and antiques. in what looks like a variety of influences here. can you tell me about that? >> a draw my inspiration from my everyday life when i wk around cities. antiques, picture frames, i like to try to match the various time.
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and become a little bit more modern. >> you don't sound like somebody who is an isn't international jewelry designer, but you are. what have you learned about the industry and about demand in the marketplace? we are talking about asia, a 30 think the best market is for this? >> if you have a unique product, the number one thing says remain true to your voice. >> you say remain true to your voice and it's interesting because you're actually from kentucky. i don't hear a bit of your accent. >> my parents are from california. >> like how i wear the story, what is your recommendation? what y tell them? should they were something simple to accent a special piece like this?
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>> i think that if you h a statement piece like that, you can wear a nice pair of earrings. i'm a big advocate for stacking bangles ke these, and that drives a lot of texture to the rest. >> that is what we are looking for. >> we wish you much future success. thank you for showing us her beautiful tori, it is just a. we will be right right back with my "two cents more" and the answero the question of our day. is your home worth more now than [ man ] on december 17, 1903, the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪
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is clawing its way back up >> is about the same here but it should be getting better soon in louisville. 19 percent said yes but 81 percent said no. finally housing may be the silver lining in this economy. another recession or t the removal of major housing tax breaks could delay the recovery but the potential is offset the not easy if i learned anything looking at the issue for the better part of a lasting years getting a good deal requires your homework and unafraid to peel back players to investigate it takes a strong stomach to negotiate but the payoff could be big also th a price that is opportunisc and that is just of the opportunity that is what the market offers. my guess is many years from now we will scratch our heads wondering why we did not get into the house
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market when we have the opportunity. that is it for tonight. thank you for joining us. do not forget to dpr the show. have a great night. neil: we are celebrating the deficits come and is not as big as we thought. only inwashington. only in washington can they celebrated us a visit that is no longer a trillion dollars. welcome, i am no curto. when it gets down to $700 billion or so, you think the you hit the jackpot, sort of likethe guy 700 pounds loses
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