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tv   Cavuto Coast to Coast  FOX Business  September 15, 2023 12:00pm-1:00pm EDT

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florence; italy? ashley, have you had a chance to think it throw? what did you have? ashley: i have not. one of my favorite suggests and i would know but no clue. go with naples, no. 1. stuart: so will i. i'm very flair with naples, florida. we are right. the answer is indeed nap les, i. well done, ashley. well done, indeed. have a great weekend and we'll see you next week. time is almost up for me, but i'm going to give you one last look at the market because this selloff, i wonder if it gathers some steam in the afternoon. never know quite how we'll close at the moment we're down half a percent on the dow. the level is $34,725. it's down 182 points. what a day. time's up for va "varney & co.". hold on, in five seconds you're going to see, wait for it, wait for it, we're getting real close, coast-to-coast starts
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now. neil: day one and the strike is on, hard to say how long united auto workers do this but the last one four years ago went on 40 days, cost general motors $3 million. this time a lot more could be striking and a lot more could be at stake. welcome, everybody. i am neil cavuto. in detroit with more on both sides still stuck. what's the latest? >> we are the michigan assembly plant that makes the bronco, arranger and the raptor. workers are picketing. this is one of three plants shut down. us a lantus plant they are
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picketing, and general motors plant picketing in missouri. this is pete hatseo. they put proposals forward. >> the 2-tiered system to change. >> reporter: you want people to get paid for wages right away? >> it would be a progression, so they have a quicker progression. they need to totally eliminate that. >> reporter: i want to play this soundbite, the status of
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the negotiations right now. >> you get the first real counterproposal late last night. we had discussions and been in active negotiations at the gm tableland international union but the first response we got was last night. i'm extremely frustrated and disappointed. they need to get this resolved. >> they get a real counteroffer, hours before the strike and barely budgeted that initial demands, sound like this is going to be a prolonged strike if you are not moving from initial demands. >> they had time. the president gave them time and gave them a deadline and they didn't meet the deadline. here we are on strike. >> reporter: you are picketing here but there are a lot of plants still running right now. is targeting only three plants
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at each of the detroit automakers really going to hurt the automakers? >> i am sure this put the ball back in their court for one. i am sure with my president, if something doesn't come to an agreement, more plants would be to follow i suspect. >> reporter: i want to ask about president biden. the uaw has not endorsed him yet. >> we have to see what our president says about that with all that is going on, inflation and stuff like that. that would be up to the leadership, what they want to do. >> reporter: do you support the president given he wants to transition to evs and there's been a lot of high inflation?
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>> evs are coming, we know that. we support it. but, i mean, we are not set up for it yet. that would determine that factor also. >> reporter: you don't seem sold. i will leave it at that. just to set the scene, what we've seen in the last 10 minutes or so, semi-trucks trying to pull in the factory. you hear the honks of support but as they pool in, they don't let them go without yelling scab at them. they think they are crossing the picket line and are not pleased with it. we continue to follow the situation in michigan and those other plants workers are walking out of today. neil: grady trimble on michigan, targeting other plants in michigan, a targeted strike. which emphasize it is limited
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to 12,700 strikers, not all 146,000. there's a different strategy to keep automakers guessing what could be next and who could be next and the better part of that would be to reenter talks and resolve this quickly, see how that goes. the president is due to make remarks on this. he has been friendly to labor, and labor to him but as we heard a second before, it's not a given on the uaw announcing support for any presidential candidate but at the same state, they committed to the democratic nominee, that was then, this is now. let's get the implications on this from market strategist, what people fear is the price of goods go up and dealerships are seeing that happen now. it could be more costly after a
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strike. >> inflation inflation inflation, creates a conundrum for the fed. you start talking in the previous report, 5 million impact for a 10 day strike, that would drag away -- the resolution to this accelerating for inflation whatever the resolution is. 20% to 40%, this accounts for 3% to 4% gdp. this is a problem for the fed and energy prices. neil: someone has to pay for that. we want workers to get what they deserve. when the teamsters struck a deal with what is going on with ups, it could translate, higher prices for packaged goods, with
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more generous packages for pilots and gets past the room. >> keeps getting bigger for inflationary pressures. we were going to have september or november to remember with another rate hike because they were going to -- the cpi and ppi data is still showing inflation. i think they could. oil prices up 40%. that is going to come into the economy again and feed into that fear of the fed that inflation would be a skala rate -- reaccelerate. keeping the fed higher longer. neil: is that weighing on the markets today. >> a big day led by a tech ipo that's really important. >> those were bullish but you
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are coming back to reality but investors have been dead wrong especially investment banks, we don't think there's going to be a recession. i read an op-ed a few weeks ago. it is not about do we have another recession. i'm in the soft landing camp. if you look up and filing activity, it continued unabated and that's the future driver of economic growth. neil: in other words a preview. >> earnings drive the economy. before you have a prophet you have to have a product, got to have a patent behind it. neil: breaking news in new york city, a dustup concerning the market crisis, particularly in
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roosevelt hotel around the corner, alexis mcadams is following that closely. i think things have calmed down but what is going on? >> we ended up being in the middle of everything. in my shoulder is the roosevelt hotel which there has been so much chaos with long lines of migrants and that came to a head earlier. this is the video we shot a short time ago things turned out of hand here but congress members including alexandria ocasio cortez came in with members of the congressional hispanic caucus to check out the roosevelt hotel, the surge shows no sign of slowing down. counter protesters showed up, a dozen, things got really loud, we couldn't hear anything, aoc and other caucus members were saying, i was trying to listen to it.
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all i could hear was people yelling close the border and yelling for the white house to do more but the whole point of this is people are sick and tired of having dozens of migrants in front of apartment buildings, hundreds on street corners, thousands coming in by the month and they want answers. they think the government is all pointing fingers at each other and no one is doing anything to help the voters so what better point to have than to come here when congress members trying to make a point during the press conference and take over so they got the microphone. anyone carrying the press conference live heard the counter protesters message so that is what we saw live and it did slow down. nypd did their best, didn't make any arrests. migrants living and staying at the roosevelt hotel worry yelling at the counter protesters so things got definitely heated and i think it is because overall people are fed up.
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neil: i did catch ocasio cortez, they expected a different reception. how did they handle it when it didn't turn out to be nearly as friendly a crowd as they might have envisioned? >> they did say we are not going to be bullied. we will protect the american dream. than the noise got louder and louder and they said thanks for coming and then left. it wrapped up quicker than they thought and they thought they would have a warmer reception. we didn't see counter protesters lined up at the roosevelt hotel waiting for them to come out so they were caught by surprise when a dozen people came walking up with their signs saying close the border. they were caught off guard and did their best to get the message out but it was definitely drowned out a bit. neil: i caught it, how smooth and full you were reminding one of the protesters just to put in perspective a bunch it
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indicated that. alexis mcadams, you are looking at the roosevelt room at the white house, the president will be coming out shortly to update us how things are going with the uaw. i want to squeeze in kelly o'grady following a trend that is aggravating things for strikers and the auto companies themselves, higher gas prices, what can you tell us? >> you were talking with guests, fuel prices are rising and it is hurting whether you are a business or not. let me illustrate what is happening, the national average for a gallon of gas is $3.86, higher than we were a year ago. in california, 386 would be a treat, we are at an average of 552 and the gas station madison: jumped $0.20 since i started my workday this one,
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you are seeing diesel prices at $4.54, $0.45 higher than july particularly problematic because trump -- trucks run on diesel and transferred 70% of the goods, normally prices go down, you get cheaper but oriole has topped $90 a gallon. yesterday, first time we've seen that since november. in the water, in the skies, and marine and jet fuel prices saw 4.3% increase versus last month, all that is translating to higher inflation, energy was behind the higher-than-expected cpi up 5. 6% but if you carve out gas, 10.6% spike so it is a problem not just for consumers but businesses as well whether you are a construction worker or farmer, i talked to a soybean farmer out of iowa who says the
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crunch could be a bigger hit to the industry. >> major fluctuations and fuel costs could have a big impact on the bottom line. costs are rising, margins shrinking, some farmers, a little earlier than they wanted to. >> reporter: the president yesterday said he will do his best to bring gas prices down but we are at $6 a gallon at this station. i hope it happens sometime soon. neil: the president will address this. >> president biden: i have been in touch with both parties since this began over the past few weeks. others have seen record profits including the last few years, extraordinary skill and sacrifices. those record profits have not
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been shared fairly in my view with those workers just as the treasury department released a report pointing out dealing with how unions are good for union workers and nonunion workers for the overall economy. unions raise incomes, increase home ownership, increase retirement savings, increase access to critical benefits like childcare and reduce any quality, all of which strengthen our economy for all workers. unions raise standards across workplaces and entire industries pushing up wages and strengthening benefits for everyone. that is why strong unions are critical to a growing economy from the middle out, bottom up, not the top down. that is especially true as we transition to clean energy future which we are in the process of doing. i believe the transition should be fair and when/when.
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for autoworkers and auto companies. i also believe the contract agreement must lead to vibrant, made in america future that promotes good, strong, middle-class jobs, uaw remains at the heart of the economy and big 3 companies continue to lead in innovation and leadership, last night after negotiations broke down, the targeted strike at a few big 30 plants. let's be clear. no one wants a strike but i respect workers rights to use their options under collective bargaining and i understand workers frustration, autoworkers sacrificed so much to keep the industry alive and strong especially the economic crisis in the pandemic. with a fair share of the benefits they help create for enterprise. i appreciate the parties working around the clock when i
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first called the first day of the negotiation, to work this out. companies have made some significant offers. record corporate profits me record contracts. let me say again, record corporate profits which they have should be shared by record corporate profits which they have should be shared by record co just as we are building an economy of the future we need labor agreements for the future. it is my hope the parties can return to the negotiation table before the agreement, to continue our engagement, i'm dispatching to members of my team to detroit, acting labor secretary julie issue and white house senior advisor james sperling. reaching the contract. the bottom line, they deserve a contract, that sustains of them in the middle class.
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>> when were you involved in negotiations? neil: i think the president, who he aligns himself, workers named to the auto companies. it is not to insinuate that the auto companies haven't made a generous offer as the strike kicks off targeting all the big three companies right now. as things stand, they have offered a 20% pay raise below the 35% pay raise, has been pushing, repeatedly saying that is down 40% wage hike. something that can to what was orchestrated with ups a few weeks back about where this goes is anyone's guess.
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i will put this strike in perspective, not all one hundred 36,000 autoworkers are participating, more like under 13,000 hit pickett lines at key plant in michigan and ohio and missouri, part of the uaw strategy to pinpoint areas to keep companies guessing. that strategy and what to make of it, what do you think of how this is going? >> it is very early. they went on strike at midnight and they are not going to do any negotiating today. may be they would come to the table if there is a new offer but got a new offer last night and didn't spend any more time thinking about that. he did -- spoke live at 10:00 and out on the picket line at 12:05. when he's ready to come back to the table i think they can get to a deal pretty soon but there are a lot of hurt feelings,
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desire to strike, pent up energy getting released. neil: when they talk about the offers they were considering, 20%, maybe a little more, they also want a better job protection, smaller, lighter work week. what's the biggest sticking point? >> of the uaw has come down, wage demands, 46% over four years to 36. they can come to the 30s and automakers get to the 20s they can reach a number ups like and get a deal people would agree to that workers would agree to but sean is asking for the four day work week and asking return of pensions, those are both non-start is with automakers,
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every executive would get fired if they agreed to either of those. the retiree benefits and sent automakers into bankruptcy in the first place so they are not going to repeat those mistakes. neil: the president plays a role. his view is the auto companies are doing as well as they are because workers deserve something but it is not as if these auto companies are on all cylinders. what did you make and what do you make of the president's are all in this, his close to unions, unions close to him, that relationship is frayed somewhat about how do you see it? >> it's interesting. i covered several rounds of uaw negotiations, we never had a president inject himself into the talks, president biden is more of a pro labor union identified president than any we have had in my lifetime, may be that is part of why can i
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he's close to the automakers, close to labor, it's a tough one for him, you never want to see family fighting and that is the situation he is in. neil: it might be a weird comparison. he's also friendly with environmental groups, the same groups that have been pushing, talking the president of the united states, for clean energy, electric vehicles and the rest. we been chatting with them the last couple days, they think that is part of the problem, they see the inexorable direction we are going in, some expressed concern it's too fast fast, too much, the president is in a box with two important constituencies. >> democratic presidents of long had this problem. the labor side wants to make big gas guzzling suvs and
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pickups, they don't care they are gas guzzling but want them to be big and profitable so it keeps them working and they get nice profit sharing checks. at the same time they have a lot of environmental groups who want to smaller cars, more fuel-efficient see, the big push is for battery cars. i would push back on the president's analysis of industry economics. automakers and dealers have been making record profits the last few years, workers have had -- manufacturers have had a role and that but a lot of it is the fact there is a huge shortage of vehicles, we didn't have enough chips, couldn't run factories in the first part of covid, scarcity made the vehicles expensive. they can pool back on marketing costs and profits were through the roof. that something that is not going to continue and it will get worse because they are pushing into evs and they are several years from evds being profitable. stuart: if you know your stuff i appreciate that.
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as we were just saying, for fact of the bar matter is this is the first day of the strike. it is different from 2019 with virtually all auto workers marked out, this one is very targeted, focusing on 12,700 workers targeting these three plants in michigan, missouri, there are 146,000 members and also there is no saying who is next, what is next, that is by design, understandings this would get the auto companies nervous. they might be nervous but gm and ford, we already put generous offers on the table but there's a lot we can do and can't do. we hear that on both sides but both sides are not even close. ♪
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>> we did a large pivot, the sulfide in the cloud, we are not an easy company to look at. long in terms of the investment, product development. what i spent my time focusing on in 5 to 10 years, in this era of ai, growth and opportunities. neil: the stock continues to advance, the single best
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initial public offering of the year. it is well off its highs of earlier today, 10%, now up to 21/3% gain. it is well north of the $60 billion valuation and successful to get insta cart to move up its offered price from the $26 or $28 range a $20 range to 20, $30 range, we will see how that goes. gary, what do you make of the different environment or we assume it is a different environment for ipos. >> it's good news going forward. the next decade or two, the biggest winning stocks will come from initial public offerings that happen every decade. my biggest worry, wall street is making you pay $2 when they bring it out so i'm a little worried about this one,
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valuation is not as bad as rivian which had valuation of gm and ford even though they had no sales. 100 times earnings, 25 times sales down year-over-year. the cyclical industry, he thinks big growth ahead they will need big growth ahead and hope it happens. neil: they are in a chip design area, a lot of these iphones are out there so we will see on that. if you don't mind stepping back, the buyer beware part which is always timely, we forget facebook. it came out the gate strong and then started tumbling precipitously. it didn't reroute and get its footing until later. what is the lesson? >> patients. everybody has this idea we've
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got to jump over ipos. i remember in 99, some of them were up 5 fold. you need to know what the company will do and what it is about and don't pay $2 for a one dollar bill. take a step back and recognize is the company growing big? compared to other companies in the industry, other semiconductors. and come up with a number. for me it is 50% higher than it should be but welcome to wall street. wall street's job is get the most possible, they did a good job and hopefully it works out. we are in a cyclical industry, probably more wary than jumping over this yet. neil: i was reading walter isaacson's book on elon musk, i forgot his stock debuted 40%,
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markets were tanking, a lot of people said this is generous, no way of making money, like we know where that went but one thing i notice, that was not a focus of isaacson, the way we divvy up the goodies, favorite clients that delve into them. the firms that dig into them, they don't democratize this process. it remains the same bastian of key players. it has not altered that. >> it has not changed, the investment banks. they get the strongest of ipos. it's not going to be a good one.
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this has been going on since i got into the business. we have to treat the people who bring most to the table the best so that is not going to change and it won't change going get forward. i bring up rivian, i couldn't believe they could bring that out and bring it to of valuation of gm ford even though they had no sales it was doomed to be destroyed eventually just to get back to the norm. not saying this is the same but do some homework and don't just jump on top of the things or get 15% haircut pretty quickly. neil: word of warning we should all here. thank you, the dow down 178 points. we will see how long that lasts. keeping up-to-date on politics,
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neil: alexandria ocasio cortez, representing the new york city area. it has gone bad to worse. the president of the united states, andrew yang, the former democrat presidential candidate, what he makes of this. what did you make of this? the heated exchange around it escalated here. a lot of people saying this is getting worse, far worse.
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>> a lot of emotion, a lot of frustration. this is a national issue. one of the numbers i keep hearing is new york city is going to spend $12 billion on migrants and there are one hundred thousand of them, one hundred $20,000 ahead. we should say to other parts of the country, if you are willing to take migrant or their family or host in, we could bring $30,000 ahead. one of the problems is new york city's cost structure is so much higher than the rest of the country. there should be a national solution. neil: are we rewarding illegal behavior? no matter how you slice it, people shouldn't come into the country the way they came into this country are treated differently than those calling all the rules getting into this country, but on 1 billion, we allow an from all over the world, each and every year under democratic and
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republicans. >> we need to do a better job managing our borders, having our arms around who's making their way into the country. there are a lot of folks who immigrated here and are undocumented. people are looking, saying wait a minute, why are the recent migrants getting better treatment than folks who have been here a long time? i am a realist. you want to acknowledge the fact that people are here and the question, what do we do to try to make it so there is not a continuous flow in because of your systems allow for that people take advantage. neil: i get the sense there's a fed up on the right and the left, you can blame president biden, talk about the border, or the intractable nature of politics today, facing another
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potential government shutdown, i am wondering is there another way? people not keen on a rematch between president biden and donald trump for whatever reason, they seem to want to feel out a third-party way and that's where your name has come up working with no labels and other groups. how do you feel about that? >> 2 thirds of americans don't want the biden/trump rematch. in a country of 330 million, these are the people you would choose. a lot of viewers see business leaders and ceos all day long. i suggest a lot of us would take any number of ceos business leaders over either biden or trump. at a minimum you wouldn't be worried about their physical or mental acuity a lot of the time. we have a 2-party system and
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the question is how do we modernize? i'm the cochair of the party working to do that every day and we are getting tons of new energy because the dysfunction is clear to see. neil: i enjoyed talking to you when you were running for president but we are up against independent third-party guys, they don't have a chance. people, i will pull the lever if they think they can win but in the end, placing my vote. how do you handle that point of view? >> in the current system they are not entirely wrong, the last election about an independent presidential candidate, what happens if a prominent independent runs, are you going to run for president? my response is apparently i've
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got another 40 years. the reality is if someone does run in the system you're more likely to empower the person who is most poor opposite of your self. neil: who would you extract votes from? it will only hurt the democratic candidate and hand the election to the republicans? that's the wisdom as much as there is confusion over all of a sudden having a democrat running in that, extracting votes from republicans. >> i am a numbers guy. my support would skew, it would increase the chances of donald trump winning which is not something i would do. one of the reasons we have to look at this clearly is you have biden and trump, two unappealing candidate to may be
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the nominees, cornell west running in the green party, there's a real chance rfk junior, with independent or libertarian and persistent rumors, manchin may run as well. you may have four five candidates, trying to suppress independent parties aside from the big ones. neil: joe manchin could take votes from anybody. andrew yang, democratic presidential candidate, much more. back to jackie deangelis with what they have in 30 minutes. jackie: the autoworkers have spoken and the uaw may be turning on prounion president. the last hope in school choice for those who are desperate, homeschooling, the government wants to control that too at the top of the hour, but first more coast-to-coast after this.
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neil: so many homes but people can't take advantage because interest rates are so high. my next guest has a way of cutting the burden down but assuming the person, the house you are trying to get. here to explain it is rome founder and ceo. so what is interesting here is you were pitching the idea of assuming someone else's mortgage. not everyone has a mortgage. you are focusing on those with lower rate ones. it depends on the size. >> largely today we are focusing on homeowners with mortgage rates below 4%. there were millions of these homes that originated in the housing market, rates run 2% in 2020, 7.5% and this led to the
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single largest dislocation because one hundred million people have been priced out so our company, we help homebuyers wind back the clock and purchase a home with mortgage as low as 2%. neil: how do you find them? >> why is the number popular? if you were looking in atlanta, use the keyword search function, five homes but you will actually find hundreds. so with rome.com, you see hundreds of homes eligible for that and we carry aided these as the best homes for homebuyers, the interest rate on those homes, ca home with 3% mortgage, 40 k to get it.
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lauren: 1 about your number? >> 1% of sales price and the reason for that is help coordinate the entire process, to find the home to purchase and manage the transaction. sometimes folks ask me why isn't this more popular. adam: a good many of them are close to being paid off. it is for the buyer making up the difference. >> 2020-21, many are fully paid off. buyer puts down similar to that of a conventional mortgage, 15 or 20%. there is millions of them. adam: say someone has 100,000
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left on their mortgage but the house costs 800,000. >> those are not displayed, those are not part of it. we don't focus on those homes. the only homes we recommend are those that have a value ratio. neil: is 50% or more. where do you see this going? >> we want to extend the benefit of home ownership. i met a lot of folks in the last year, interest rates went up. they stop payments go up. millions of americans, they got smaller and smaller and smaller. we want to give all those folks a chance. neil: that could address supplies. a lot of these homeowners want to get out there and find someone who wants to get in.
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>> sellers off of the sidelines, you're a veteran out there or fha home loan. let us know what your property address is and your interest rate and what you are thinking about and get you personalized marketing assets. your home is the only home in the neighborhood that comes with 2% mortgage. neil: keep us posted on this. the founder and ceo again. okay. we've got the dow down one hundred 89 points. having nothing to do, we are going to focus on interest rates and what happened on that front after this. ♪
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neil: don't want you to forget hurricane lee, a storm expected to strike nova scotia, canada, expected to make landfall as soon as tomorrow morning. it could bring three feed of storm surge. we will keep on top of that as will my colleagues and friends

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