or ally well today there was an arrest but it wasn't the man who pulled the trigger it was the new black panther party member that offered that bounty hunter no more it's on our website. but that's going to do it print out we'll see you right back here and have our. it's a. good

afternoon and welcome to capital account i'm lauren mr here in washington d.c. these your headlines for march twenty eighth two thousand and twelve to europe where spain is more likely to be headed for a troika debt restructuring that's what a citi group analysis is saying at least now we've talked a lot about who loses in what our guest calls the lips the ready middleton is back from traveling the world and he's found some places that stand to cash and he'll reveal the pockets of optimism. the world isn't on the paradise would run proceed into the opportunity can be found. that the head will give you the details and apple nation you could say we live in one half of all u.s. households own at least one apple product that's according to a c m d c's survey that was so much focus on our poll not just by consumers but markets in general are people missing the bigger tech picture we step away from the herd we ask you to as

well and look at the bigger picture and what this means for entrepreneurs meanwhile get out your popcorn or maybe a stiff drink and the global witnesses were back on the hill today reportedly with evidence showing some of the firm's employees were aware of the short ball in customer accounts days before the firm imploded those star witness edith o'brien did this. i mean by some consul i respect some of the current. face of constitutional law. and that was actually arguably more valuable than what anyone else had to say we'll tell you when let's get to today's capital account. now before i get to our guest today let me just give you a repack out of this m.f.

global hearing because it's going on right now on the hill when we went on air with the house financial services oversight committee and executives from m.f. global who basically are saying nothing you saw edith o'brien the assistant treasurer plead the fifth which was actually more valuable as one lawmaker even said then what other m.f. global executives were saying which was basically oh yeah it's bad that the money of customers is missing we know that's wrong but was a my responsibility i don't remember anything suddenly they all have amnesia this is the c.f.o. the general counsel the another executive as well one lawmaker said it reminded him of hearings back in the day when he had enron executives in front of him so tomorrow on the show we will have a founding member of the commodity customer coalition and the global customer also a fund manager who saw his account vaporized ok he's one of the victims and he was

consulting with congress on the hearing he'll be here to debrief us tomorrow hopefully he will have a lot more valuable insight to give us that any of the executives claimed to have there before congress today now moving on let's get to today let's step away from the herd to see what everyone may be missing from apple cheerleaders to crisis doomsdayers because the research comment from citigroup chief economist smells trouble first spain says reportedly the risk of a spanish debt restructuring is higher now than it's been since the beginning of the crisis and that spain looks like a target of some kind of troika program this year that's what they're predicting now spain is the fifth largest country economy in europe so obviously a commensurate concern and on the ground not only can we expect a general strike in the country on thursday protesting high and unemployment and changes to labor laws reportedly. a look what else national sex strike you don't

see that every day spain's high class hookers refuse to sleep with bankers until they open up credit lines to cash strapped families wow talk about getting all sectors now europe's crisis spells doom and gloom for many countries citizens investors a lot of which we've covered on this show quite frequently now but we focus a lot on the damage let's not forget there may be some bright spots ok and leave it to contrary and bad ass reggie middleton to find them middleton of course is entrepreneurial investor he's also back from aboud dobby with some hope for us so reggie you come out not only with good stories but with hope which is something that we don't get to talk about a lot on this show every day so let's step away from that kind of europe doom and gloom scenario which we've talked a lot about because you're back from your trip and you say that hey you know jobby the u.a.e.

is uniquely positioned to take advantage of some of this euro doom and gloom how and why. well good to says. i'm still i wouldn't call it doom and gloom. like reality you know he threw a ball in a fair and should expect to come back down there point it is yeah those who are alleging are sitting in bed. and this sort of such as myself as a groom or expects a boy to be thrown in the air and they were there for you know four or five minutes . as a ball comes down. the tree and when there's a significant loss to be taken as a game usually on the other side of the trade i still expect significant losses to be taken this city back and this is in full agreement with my perspective you know spain has it's come up it's coming. closer bill sort of region is rife with not performing overpriced assets up to market etc and that's just portion of bustin

problems but such as a country such as spain greece portugal italy and cetera do have significant assets of value that they will most likely have to consider selling off the problem is usually we have a significant a lot of players are in the same boat but those players who have some diversification and are not hooked into the same economic cycle as the prophet you nations have the opportunity to take advantage and you can see a shifting of the guard. abu dhabi and some of the arab nations are perfect examples where their fortunes are not necessarily tied to the poor person because the markets created bubbles etc and as these nations get in trouble and especially not socialist nations what i'm forced by mandate go up their banks over leveraged. toxic assets. i would suggest was for my actual

clients to take a look at buying assets off. what is normally what has been done in the past with the us crisis is that since records are there it's not a big on the banking industry right now because of the spheres being cleaned up a lot of the players said allowed the banks to collapse to running prevents the same applies in the same message so you don't solve the problem but instead the kids. significant have a very distinct if you take a look at wall street. for. the higher peaks throwing bottles in the fire and. planning so if you take advantage of that mentality but he can trouble and he starts facets. of couldn't bonuses in the. compensation yeah you can take advantage themselves and there you go i go to

a good opportunity there is metals commodities etc ok and reggie before we move away from abu dhabi which obviously you touched upon you were just there i've got a great photo of you in front of some amazing looking palace if we can bring that up and show our our viewers some sure they will appreciate it so just you know we had a guest on the show yesterday who had just been to dubai both before the bust and after it and said that the general trend though is that the region is moving up an up it's on the expanse you're just back give us some insight give us some juicy tidbits i mean gold toilet seats investment opportunities whatever take us there to your fact finding mission. ok for whatever observe them. for everything i have that was there. i would be his economic engine the rich city. rich region of the u.a.e. and they had the wherewithal to be able to buy their credit goes. to buy it was

overheated commercials the good thing is was much of the world became seven billion dollars and. dubai has a lot of economic activity most of the major u.s. corporations have. cooperation as well and. they have problem ships where you have to proceed with local companies in order to business which is in which companies that do some diversification but doesn't have the oil. reserves that i would have because it would be. around it sitting here with potential chemical petrodollars has the ability to profit the most from the potential in europe and the e.u. and potentially even china. china story.

out of the bust. before so the united states just a few years behind the curve ok so you think it's a hard landing that's coming speaking of aba dobby and all that money and power you pulled out a headline that i'll be dobby royals are involved in r.b.s. talks this is of course the eighty three percent british taxpayer own banks and i'll be dobby could end up with a stake of more than a third my question is this part of a continuing trend we've seen where developed economies and our banks get so laden with debt that they need bail out they need help they need capital and they go to some of these emerging markets for that that are more cash rich have massive foreign reserves that we've seen that with europe going to china as well. yeah well it's happened as happened to us from look at. quite a few of the us. from asia and from the middle east i don't

think the turns were. compensate for this again i would advise my clients and actually going to. be interested in such advice is a yes it's. you will see more that in the future. but yes r.b.s. is a. taxpayer in my opinion feel bad for the situation and the institution. position to. do much better in the. medium term future just to see. if you follow the book. it was very clear over two years ago that the greeks were going before to make it now despite bad. yeah so we have the same old same business mentality a person will not invest in the bank so that's if you get one of the deals you care

about such as a lot of favors preferred stock yeah right ok and you know you mentioned the r.b.s. deal and getting hit by such as spain you also ask more broadly what happens when liquidity starved capital deprived over leveraged banks fail to roll over underwater mortgage debt we mentioned the spanish housing that continues to fall and you believe well too i just have a minute left but what do you think the impact of that is going to be. well the base case scenario is if there is a sense of. europe and the up there was a very. bad. well it's a mild. it's a nuclear fall that's a. critical part of it and the. standard bearers of. the banks all over the rich. and they're basically the wards of the state and

so being in that condition real estate has to follow closely. just the way out it goes with capital. deals without having to rely excessive leverage cherry picking income producing assets when the time comes that time is right now not now ok when that time comes you have to look for. opportunities and not. as powerful you know ok you know in a week before bad news for some good news for others right you want you to see it right there when we get back i want to talk about apple but we have to go to break for a minute. entrepreneurial investor and also still ahead banking can be a risky business but who takes more risk exactly male or female executives will give you our two cents but first your closing market numbers.

here is that so much. with. money. with the rifles occupy wall street protesters are coming out of their winter hibernation. with plans to review demonstrations six months. wealthy british soil. markets. find out what's really happening to the global economy with much stronger no holds barred look at the global financial headlines tune into

cars a report on. the official g.o.p. creation choices one called talk from the. video on demand. costs or as history now with the palm of your. machine. all right welcome back let's switch gears because we don't often get to talk about apple or a specific industry like tac but our guest has a very interesting perspective so we are going to find out more about it because half of all u.s. households own at least one apple product that's according to c.m.d.

sees all america economic survey and i have to admit that we fall into that category most of us on my team we have our i phones and it's not just consumers it's investors apple is of course a darling of investors and to see a meteorite rise that seen the company's market cap move above that five hundred billion dollar mark which is a threshold reserve for very few companies according to the m.p.c. it's the only one that's above that threshold now but. is there a catch is there something the herd is missing there always is and leave it to reggie middleton to point it out so let's bring him back in here and find out what it is so reggie you follow apple you always find that kind of missing piece that people are not looking at my question for you we get it everyone's of cessed with apple but in focusing on this is the herd missing anything or a bigger trend or maybe where should the smart money be looking now. ok well. the herd is i mean to begin with apple is

a phenomenal company i mean you've done very well. management has executed significant very. early they've also managed to take advantage of their competitors bomblet apple's biggest products or the result of the previous leader industry leaders basically becoming complacent before the i pod apple was a computer company they actually had to name the computer. they started out as a premium product vendor and then microsoft came in and created an operating system and open it up to all vendors therefore dropping margins support hardware software margins and that put up a significant disadvantage when apple was selling computer for three thousand dollars microsoft made a comparable computing computer of similar capability for a thousand dollars over a hundred this eventually put happened through a. bankruptcy and the recent history steve jobs came back he created the

lottery mantra let me have what it was he reinvented category such as the work he wrote is the i pod. but as a digital piece. media machine he created the app store he me invented retail music music to reinvent it. he goes and music in the same thing with i from again he took standard product ok he made it sexy very well and then he told me talk about it and he said that i pad. users i pad many who are not tech confuse us actually think that apple created the tablet computer going to message you know my source but since it's not seen i mean to put because microsoft was in effect a monopolist. they did not improve the product for years. c.s.a.

the result is that. it looks at c. and we do some functionality made it easy to use for the problem. of history but this happens in cycles. and is at risk of complex accompanied despite the fact that natural very very well. executed as well and that's why the crown from apple and from i.b.m. . so you're saying someone can take apple's crown this is the time that that could happen possibly yes if you take a look at apple is doing very well they're almost doing too well the products and gross margins on i phone the roughly seventy three percent of the i pad there were about fifty six percent but not just an i pad. which is open for operating since inception the reason is the average selling price has been going down but the average cost of production has been going up at the same time significant

competition is growing it's a market if you take a look at the i pad now the most recent i pad which is a media broadly is still not as capable as the most capable android tablet which is that the same for this but still people go crazy over the i pad regular want to get in here because we just have a minute there's an important part of this i want to ask you about because you say the big trend is that everything is most move towards mobile devices and mobile. computing so what does that mean for entrepreneur or is a lot of entrepreneurial people watch this show what's in it for them. well. in a nutshell yes and so the history again in a nutshell business right. for the most important small business really i would have a store front ok and then the next. paradigm shift was to have a business card and after that it was to have a website well. most small business should be looking for now said to have a mobile. computing network. so from.

a desktop for you for yourself. to get that mobile app reggie i'm sorry we're out of time running up against the end of the show i gotta go i appreciate you being on you always have so much insight i need a mobile app or my show that sounds expensive i have to look into it though thanks so much i was regimentals an entrepreneurial investor ok. all right before we go let's wrap up with some loose change i had to shannon per usual to talk about this ok women they don't seem to put up with any kind of funny

business any risky business as managers in the fashion industry according to this famous portrayal you could call it. i don't understand why it's through this difficult to control point when i'm so sorry and i actually can turn your incompetence do not interest me charles simonyi i'm going to. be for the brazilian layout. what about banking a new good is being research reports as a higher proportion of female executives on bank boards leads to a more risky conduct of business authors say the main reason is that women executives tend to be significantly less experienced their male counterparts and a lack of experience drives risk taking now the biggest bank i should mention has one woman on it six person board findings are based on an analysis of a german bank executives team from ninety four to two thousand and ten dimitri what is in their pool women that are ruining business in the risk takers ok the number of women are so disproportionately small in this industry compared to men that i

can't help but think this is just some kind of a red herring to keep them out there's so you would think so it's saying in a bad way not in a way that it's good they're saying that obama is bad to have on your board but i don't believe it though i don't know i mean it's true that some of the biggest like walls that will just tear your face off are when i work on wall street there's no question about look i'm sorry if i send you one that works on wall street look at the. top the taxpayer space across this country i'm pretty sure they're all men. of your head office think your wall of water while i worry about anyone ripping my head off as long as they don't rob our country and so far i haven't seen any women do that or it will look i'm not agree with you all right. but i mean you use a good standard in here. basically the report was written by three so that just goes to show c. i don't know if that necessarily matters because i believe that anybody can execute

analysis or objective reporting in a way that's probably fair i just don't believe or buy these results of a risk taking is good women can think. it's reality and then haunt women and men around women want her then kill everything in sight and destroy the enemy you can have a nice story there's nothing to bring back let's move on speaking of destroying some cheaters are having their chances of cheating destroyed oh look. so you may have heard about the twenty students from long island dimitri do you know these guys because this is your. they were charged with participating in a scheme in which teenagers hired other people to take the s.a.t. college entrance exam for them. how incredibly easy it is to cheat the system there is absolutely no security in place whatsoever to prevent criminal impersonation like we see here from happening until now students will have to

submit their headshots in advance with their test application for the s.a.t.'s or a c.t.'s and a photo will be printed on the admission ticket it's supposed to rule out cheating or you think i think i don't care because the s.a.t.'s are a joke and their bias. people first of all that it's worth smart is the racially they're actually bias the fact people of different races have a hard time doing well this is because culturally they have there and it's made for white people a gun and if you think white americans there's no early on these have nor do i actually actually i didn't but one of the dumbest people some of the most people i've met are people that they were most of these because intelligence my view is a combination of actual intelligence over or under i don't know how you do the fraction basically you have that you have a kind of crazy thing is a combination of us more your process where you think you are and you know what it is because of these and the well the good are smart and they deserve something sorry success is actually going to be proven in the rest of life i guess if you

score me something was that i got a very good test i don't care long. it's wrong with your. bush and i want to win i'll get my life. by bringing you the rules were you to get this thing doesn't resonate you know my vote on please stop endorsing cheating on this show shannon honestly i just don't think that this is going to do away with cheating and when i took the test it was a giant college lecture hall there were so many people in there there's no way they're going to be able to check every and verify every single picture you can give you can look at what you have if you go to the bench or choose me the best going to do that all the system is built to reward cheaters why we put people out to cheat we should be encouraging i don't know if you see as much as no no no we use it in a way to get ahead. american and more ok to rob and steal ok no it's there may be no way to get ahead in america the conventional ways to make sure but i really don't think that we should stop having people aspire to change that and i think

it's grown thoroughly a sucker cheek tzschirner some cash course they're not and that obviously done but it has over a number of your drivel that's it i'm just getting to me for your we love you that's all we have time for thanks for tuning in do not forget that tomorrow we will have a founding member of the commodity customer coalition also an m.f. global customer who thought his account quote unquote vaporize yeah right he is going to recap everything that we didn't hear today and his hearing because basically executives said nothing and in the meanwhile don't forget to follow me on twitter at warren lester give us feedback on the show it you tube dot com slash capital account and from everyone here thanks for watching and have a great night. you know sometimes you see a story and it seems so whole a plea you think you understand it and then you glimpse something else you fear so

you saw the part of it and realized everything you thought you knew you don't know i'm sorry welcome to the big picture.