possible. to push. the. trigger a proxy. strike

. before the government is expected. to washington. good afternoon and welcome to capital account i'm lauren mr here in washington d.c. these are 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 iraq a lives the regin middleton is back from traveling the world and he found some places that stand to cash in and he'll reveal the pockets of optimism. that

it's an island paradise we're going proceed to the opportunity if you can be found . that's ahead 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. seized survey what was so much focus on apple 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 m.f. global witnesses were back on the hill today reportedly with evidence showing some of the firms employees were aware of the shortfall in customer accounts days before the firm imploded those star witness edith o'brien did this. i need by some consul i respect some of the current. accounts to show. 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 than 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 than 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 euro crisis doomsdayers because of research comment from citi group chief economist smells trouble for 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 at 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'll 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 while 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 reggie middleton of course is entrepreneurial investor he's also back from agu dhabi with some hope for us so reggie you can talk 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 aboud dobby the u.a.e. is uniquely positioned to take advantage of some of this euro doom and gloom how and why. well there are two says every trade i'm still i wouldn't call it. perspective. you know he thought of a care you should expect to come back down your point as it is those he goes. alleging are sitting in bed. and they're sort of best for such as myself for the doom and gloom i expect support to be thrown in the air and then repeat their for

you know four or five minutes but as the ball comes down. think of this in trade when there's a significant loss to be taken as a game going to set up a trait to expect significant losses to be taken in the city back and this is in full agreement of my perspective you know spain has its comeuppance coming. close to go so region is rife with performing over price as it's not about the market set up and that's just a small portion of spain's problems. but such as a country such as spain greece portugal italy etc do have significant assets of value then they will most likely have to consider selling off the problem is usually many other significant a lot of players want to see but those players who have some diversification and are not hoping for the same economic cycle as they profit the e.u. nations have the opportunity to take advantage and you could see

a shifting of the guard. abu dhabi and some of the arab nations are perfect examples of their fortunes and i guess to the boom and bust and we'll see about its credit bubbles etc. as these nations get in trouble and especially the more socialist nations work force. to build up their banks over leverage. toxic assets. i would suggest was from 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 being written to reconcile the banks not to be going to banking industry right now because i don't feel bad for the streets being cleaned up a lot of the players read aloud the banks collapse or start running the banks. the same employees in the same message so you can solve the problem but the banks to make it skittish banks have significant have a very distinct senator if you take

a look at wall street not to for right now. they hire and peaks throwing bottles in the fire and tossed around brooms with relatively little planning so if you can take advantage of that mentality when he can in trouble and he starts off that sets a new way of cutting bonuses significantly cutting. compensation. you can take advantage of that mentality i get a good opportunity there is a better. it's 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 or our viewers i'm sure they will appreciate it so just you know we had a guest on the show yesterday who had just been a new guy both before the bust and after it and said that the general trend though is that the region is moving on up that 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 from what i observed for the weekend after i was there. is an economic engine very. rich city. which region of the u.a.e. and they have the wherewithal to be able to buy here credit goes to. dubai was overheated commercial real estate as was much of the world i would advocate doesn't go that mild dubai has a lot of economic activity most major u.s. corporations have. many of the european corporations as well and the way that. they have partnerships where you have to proceed with. in order to do business which is and which in the local companies that do some diversification but do but

doesn't have the oil. reserves that i would obviously this. is. more grounded city. as it goes to profit the most from the potential plus in europe and the e.u. and potentially even china. and china story that they somehow put. their way out of the bust what they did was they created a credit bubble with. not performing as it's so the united states they just a few years behind the curve ok so you think it's a hard landing that's coming speaking of aboud dobby and all that money and power and 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 not as much that we see that with europe going to china as well. yeah well it's happened has happened to us look at. morgan stanley quite a few of the u.s. banks. from asia and from the middle east i don't think we're adequate to. compensate for this again i would advise my clients and i think we seek out those would be interested in such advice it's a cherry pick yes it's. you will see more that in the future but the r.b.s. r.b.s. is it the way people feel about a british taxpayer in my opinion it's a field to which. the institution is still not positioned to.

do much better in the. future i just don't see it it's a good bet. it was very clear over two years ago that the greeks were the fourth on their bit bed you know with a two year leeway. so we have the same old same business mentality i personally would not invest in the bank so that's i think one of the few if you care if you use it is that a lot of favors preferred stock yeah right ok and you know you mentioned that the r.b.s. deal and getting hit by cars such as spain you also ask more broadly what happens when liquidity start capital deprived over leveraged banks fail to roll over underwater e.u. mortgage get 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 out of. well the base case scenario

is mild if there is a serious about nuclear winter a commercial real estate in europe and elsewhere well there has not filed that sounds bad. well it's a mild nuclear but it's a nuclear fall it's a. real speed is driven. primarily by. the. standard bearers of liquid in front of the banks the banks are all over the ridge the banks are not collapsing in the bailouts and they're basically wards of the state and so being in that condition real estate has to follow closely. it's just no way around it those with capital for that are going to do deals without having excessive leverage have the opportunity to cherry pick income producing assets when the time comes that time is right now. and when that time comes you have to look strictly as encompassing opportunities and not the end. of the

portfolio you know in a week before bad news first time good news for others right i want you to sit right there when we get back i want to talk about apple but we have to go to break for a minute without martha entrepreneurial investor and also still ahead banking can be a risky business but who takes more risk exactly male or female executives we'll give you our two cents for the first closing market numbers.

all right welcome back let's switch gears because we don't often get to talk about apple or a specific industry like tech 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 it's seen

a meteorite rise that seen a company's market cap move above that five hundred billion dollars mark which is a threshold reserve for very few companies according to see 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 middletons have pointed out so let's bring him back in here and find out what it is so ready 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 obsessed 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 out. well. the herd is i mean to begin with apple is a phenomenal company i mean done very well. management has executed significant very excellently people also managed to take advantage of their competitors number of 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 make up a computer. they started out as a premium product vendor and then microsoft came in and created an operating system and open up to all vendors therefore dropping margins support hardware software margins and that put up a significant disadvantage but apple computer fifty thousand dollars microsoft made a compatible computer of similar capability for a thousand dollars to eight hundred this eventually put it happened to a certain bankruptcy. history steve jobs came back he created the lottery mantra let me add to what it was he invented categories such as the what he bet is the i pod. but as a digital. media machine he created the app store he

reinvented retail and music because they can reinvent it. he goes and music in the same thing. again he took a standard product ok he made it sexy got him out of a very well and then he got the took around it and same thing with i pad users i pad many were not confuse us i actually think that apple created the tablet computer and this is you know much less percent since ninety nine to put because microsoft was in effect from the mouth of this. they did not improve the product for what it's hears. the result is that. they actually reduce the functionality it looks at c. and we get some functionality easy to use and more reliable for the common user history but this happens in cycles. and apple is at risk of

completes a company despite the fact that i'm sure it's very very well. executed as well and that's the crown from apple and from i.b.m. . so you're saying someone could take out those crown this is the time that that could happen possibly yes if you take a look at it apple is doing very well but almost doing too well the approximate across margins on i phone the roughly seventy three percent on the i pad there were about fifty six percent margins on i pad. which is open for up and since inception the reason is the average selling price has been going down but the average cost of production has been going up and at the same time significant competition is going through the market if you take a look at the i pad now the most recent i pad which is a media darling is still not as capable as the most capable android tablet which is that concern for this but still people go crazy over the i pad read you 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 moved to move towards mobile devices and mobile . computing so what does that mean for entrepreneur has a lot of entrepreneurial people watch this show what's in it for them. well. in a nutshell yeah so the history again in a nutshell business is right. for the most important thing out. of the store front ok and then the next class the paradigm shift was a business card enough to bet it was a website well. maybe small small business should be looking for now it's actually have a mobile most confusing solution. it's so for. you that i mean for yourself. yeah so you got to get that mobile app with 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 for 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 stand in her 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. understand my purpose was to confirm the point. and i actually do you can turn your incompetence do not interest

me and i'm not going to girl she sent me for the brazilian like now. what about banking i knew going to 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 than male counterparts and a lack of experience drives risk taking other buddhist bank i should mention has one woman on its person board and 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 of 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. so you wouldn't think so it's saying in a bad way not in a way that it's good they're saying to their i don't know bomb that is bad to have

on your board but i don't believe it though i don't i mean it's true that some of the biggest like walls that will just tear your face off the work on wall street there's no question about it is and one that works on wall street look at it i know we're going to be ripped off the taxpayers face across this country i'm pretty sure they're all men my check will rip your head off of your wallet while i'm angry 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 might agree with you but. to get 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 groups like. this reality men women or

men around these papers we want to hear and 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 neck you know as they were charged with participating in a scheme in which teenagers hired other people to take the s.a.t.'s 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 i.p.c. here from happening until now students will have to submit their head shots in advance with their test application for the s.a.t.'s or a.t.t. then the photo will be printed on the admission ticket it's a post to rule out cheating or you think i think that i don't care because the

s.a.t.'s are a joke and they're bias. people first of all diets or smart there are a few hairs the racially they're actually bias the fact people of different races have a hard time doing well this is because culturally they have and it's great for white people going to if you can what america is there's not really on these to have neural action actually i didn't put one of the dumbest people of burma people i've met are people that they wanted to use because intelligence in 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 nor your process where you think you are and you know what it is because of these and the well look at their smart and they deserve something sorry success is actually going to be proven in the rest of life i guess if you score me some of us and i'm not even thirst i don't care launching all kinds of wrong with your. bush and the war when i'll come live by. the rules we're going to get this leaf doesn't read me your head was on please stop

indorsing cheating on this show shannon i mostly i just don't think that this is going to do away with the cheating i mean 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 look this is what you have to do the banks are the best going to do that all the system is built to work here's why we put people out to cheat we should be encouraged to use it as much as no no we use it in a way to get ahead. american more ok to rob and steal ok know it's there may be no way to get ahead in america the conventional ways to meet you but i really don't think that we should stop having people aspire to change that and i think it's proserpina circuitry sure is going to course here not. done but over enough of your drivel that's it i'm just getting to 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 saw his account quote unquote vaporize you are right he is going to recap everything that we didn't hear today in his hearing because basically executives said nothing and in the meanwhile don't forget to follow me on twitter at warren lister give us feedback on the show you tube dot com slash capital account and from everyone here thanks for watching and have a great night. from . the home.