remember, never turn investment into a trade. never turn a trade into an investment. with cramer. >> i have to concede that in the environment we've seen more recently it might have had some benefit. >> i rest my case. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". >>> i'm trying to educate you. trying to get you now so you can stay in the game for the long haul. trying to be your coach, help you make money the best way i know how. >> that was easy. >> before you can make money you have to know how not to lose it. >> the house of pain. >> which is why right now i want to talk to you about protecting yourself from yourself. something that's never been more importa

remember, never turn investment into a trade. never turn a trade into an investment.tick with cramer. >> we have been on a crusade on this show. >> you were one of the first people to talk to about the uptick rule. >> the s.e.c. tossed these stocks into a virtual free fire zone. >> i have to concede that in the kinds of environment we have seen more recently, that it may have had -- good it had been in effect, it may have had some benefit. >> i rest my case. >> want to press cramer's buttons, use the "mad money" sound board today. remember this one? >> they know nothing! >> listen to all of cramer's famous sound effects at madmoney.cnbc.com. >>> i'm trying to educate you. trying to educate you now so you can stay in the game for the long haul. ♪ hallelujah >> trying to be your coach, help you make money the best way i know how. >> that was easy. >> before you can make money you have to know how not to lose it. >> the house of pain. >> which is why right now i want to talk to you about protecting yourself from yourself. something that's never been more important. you k

you know what, also how to invest.he best thing i can do is teach you how to invest like a professional and to stop making the kinds of mistakes that you'll almost never be helped with when you invest by your lonesome. i told you about keeping cash already on the sidelines, right? we got that down. now it's time to look at a crucial difference in how professionals and amateurs think about stocks. the professionals, all right, and the amateurs! when an amateur look as the a stock, he thinks, what's my upside? pros don't do that. they think, what's my downside! if you take care of the downside, the upside often takes care of itself. that means you need to spend a lot more time considering what you can lose in the stock then you can start thinking about what you can gain. i can't tell you how many times someone who owns a stock that's going down asks me how this is possible, in spite of all the great reasons to own it. they've totally failed to consider the possibility that there might be any downside to the stock. the fa

remember, never turn investment into a trade. never turn a trade into an investment.mer. you can't even tell me anything about this wine. ah, it tastes like sonoma valley... no, my friend, these grapes are very... sierra foothills... - foothills, ha. - idaho. with fields of the finest hops known to man. harvested at just the right moment, to produce the perfect balance of flavor... and refreshment. i'm sorry, you guys were saying... uh, budweisers all around. ♪ dude, you feeling the hops? i'm so feeling the hops. yeah! come on in. you're invited to the chevy open house. where getting a new vehicle is easy. because the price on the tag is the price you pay. you'll find low straightforward pricing on remaining '08 and '09 models. including eight that offer an epa-estimated 30 miles per gallon highway or better. now get an '09 cobalt xfe with an epa estimated 37 mpg hwy for under 15 thousand after all offers. go to chevy.com/openhouse for more details. >> i'm trying to educate you. trying to educate you now so you can stay in the game for the long haul. trying to be your

insurance investments. i'm here to tell you, i have never found a client that understood it, i have never found a financial planner, aka insurance agent, that understood it. and sometimes i get the fun of dealing with the legal department of those insurance company, and i never found a lawyer that understood one of those documents. so, we play games we don't understand with our nest egg. and then finally, -- and i'm guilty of this as well -- love to overcomplicate things. everytime i violate the kiss principle, keep it simple, stupid, i usually regreat it. 43 fund diversified portfolio. you'll see with three to five funds you can build a diversified portfolio that i can guarantee you will be less diversified. sophisticated market models, bathes technical analysis, that's completely worthless. my favorite, market newsletters. mark hole -- holbert did a studdie. he follows newsletters. in 1982 if you had taken $10,000 and invested it in whatever was the hot nest the news letter, do you know how much you would

we have an investment in israel. we have investment in india. optimistically, when there are great opportunities with technology that is transferable outside of this country and in the mobile arena -- outside the united states, the market is bigger. that is where we spend a lot more time outside the border. >> you have spent a lot of your career in investment and i.t. you lived in china for a few years working on investment. how does the chinese market compared to the u.s. market? >> that is a conversation that could take hours. i spent quite a bit of time in the united states doing investments as well as overseas. i was the cfo of global internet services for one of the largest telecommunications companies in asia. i did a lot of joint ventures for them in china. i think the entrepreneurial spirit in china is starting to evolve. it was still primarily in the manufacturing and low technology a few decades ago. i see the trend starting to shift. quite a bit more are now into software and the high-tech investing. there is always a bit of competiti

so we have seven partners on the investment side, and all we do is do i.t. investments. and by i.t., it incorporates anything from digital media, for example, which is why we're here all the way to mobile and telecommunications, semiconductor materials, software and the whole gamut. >> host: is it fair to say that most i.t. venture capitalists are based out in california? is it rare to find one here in the washington area? >> guest: well, obviously, the mecca is silicon valley, but we are seeing pockets of growth elsewhere in the country, you know, boston is a fairly big market. and this region is actually quite, quite in terms of a talent and the ideas are quite prolific primarily because we have a lot of government labs, so there are a lot of talents in the research and labs here. plus there is a lot of great universities here like the university of maryland school of engineering and virginia tech, you know. so we do get to see quite a lot of young entrepreneurs. >> host: so what do you look for when you may be recommending an investment in i.t.? >> guest: well, right

you can bequeath investments and wealth but also knowledge from one generation to the next. if you're teaching your children and having those conversations you can increase the likelihood they'll be able to increase their investments and equities in stock. >> great information. ryan, barb, thank you both for being with us today. >> thank you. >>> from low unemployment to great school systems to below average crime the small towns on "money magazine's" best places to live have a lot to offer. we'll tell you where they are next. >>> it's that time of year again. time for "money" magazine's list of the best places to live. did your town make the list? let's find out. the senior writer is here to give us their picks. okay. your magazine has been doing this list for 25 years. you're really experts at picking the towns that have great jobs, great places to live, lots of opportunities for families. at the top of your list is a little town called lewisville, colorado. right? >> that's right. lewisville, colorado is between denver and boulder, so in the rocky mountains. >> beautiful.

and...why you may want to think twice before investing your retirement all in company stock...why it could pose a risk to your retirement security....it's all ahead on this edition of first business. don't look now but the march to may rally is under significant pressure welcome in glad you're along for the ride. the selling of u.s. stocks in july taking the s&p 500 down to levels we haven't seen since april even as oil prices collapsed almost $20 from their highs. on thursday is gonna be interesting to see how the market reacts to alcoa's earnings the company reported another big loss for the second quarter more than four to $50 million loss in most market experts would say that even though alcoa is a big bet component there are more important companies to watch like ge and some transportation stocks. but we need more uncertainty and stories about computer hacking and government agency was size even the new art stock exchange impacting public access. federal regulatory officials say they are ready to open up debate over imposing limits on oil speculators... but industry insiders say

we need investment in colombia. the only way for my country to prosper and overcome poverty and to include in this [unintelligible] the rate of embezzlement has passed from our administration -- investment has gone up to 28%. during this year, in the middle of this economic crisis, during the first quarter, we had an investment rate of 25%. falling direct investment, it was in between $500 million, $1 billion, up $1.5 billion. during the last years, we had 6.5, $10,000,000,000.563999176. -- we had more than $10 billion. this year, we have more than $3 billion. we have had an increase of 16%. in the comparison with international trade, our economy has performed this year comparatively well in the capacity to attract foreign direct investment. we have introduced many structural settlor reforms but every day we consider that we need to adjust our framework to advance with new reforms. it is necessary to have a clear goal. what do you want to reach? where is the place you want your country to arrive in? at the same time

how are you investing, then? where do i want to be invested to really take advantage of what you're expecting to be a market that has real legs in terms of this rally? >> i'm looking at those sectors that have been going through the most pain. primarily right now we're adding to our health care companies. we think health care is under a cloud because of the things going on in washington. people aren't clear exactly what's going to happen and how congress is going to deal with the reform. so health care, there's a lot of opportunity, a lot of missed price securities. we also like the housing related companies. companies that provide all kinds of products for homes as well as the actual real estate services companies, which we think have a lot of opportunity for the future. so we really are building our positions in those areas that have been a tremendous weakness. >> you mentioned something about earnings. while we have seen a lot of strong earnings coming out, a lot of the reason for the better than expected numb

we are investing now, public investment, to make sure that we help back up the economy, get through this recession to make sure that the recession is shorter and shallower than it would otherwise be. and that means backing out businesses. it means protecting people's jobs. it means helping the unemployed and it means ensuring that people don't face repossession. and we are taking the action, and he wants to concentrate on numbers because he wants to avoid facing up to the fact that they have got proposals to cut public investment now exactly when -- mr. speaker, they have proposals to cut public investment this year just when the economy needs it most. and i understand that the shadow chancellor has revealed last week that he spends 40% of his time thinking about economics, it's amazing that he spends 40% of his time thinking about doing absolutely nothing. >> perhaps the leader of the house could spend 100% of the next minute trying to answer the question. [laughter] >> that she was asked about what the prime minister meant by a 0% rise. is it not now clear that every single word of the

and having invested accordingly, china invests 9%. india, 5% and rising. here, in america, we spend less than 2% of g.d.p. if it is true, that a civilization is measured by the quality of its roads, then we soon face a reckoning. if we are not careful, we will fall behind. we can continue to be a nation that mainly consumes, or we can try to move back to being a nation that invests and produces. and to do so, we need a 21st sentry national infrastructure policy that makes us more energy efficient, reduces our reliance on foreign oil. that means constructing smart power grids, designing buildings that consume less energy, making alternative fuels accessible and making public transportation systems more efficient. all of which will create new markets, for new jobs. and jobs that cannot be outsourced. for these reasons and many more, it's time to prioritize, but we need to be smart about it. simply throwing money and resources at the problem willy nilly will not pay the dividends we seek. in this moment of peril and possibility, to paraphrase a beloved presid

have you double catalysts there for that sort of an investment. >> how are you investing today? can you give us a breakdown? >> what we do have some emerging market exposure but i also manage a china fund. we're very buttish on china because they've had very positive economic numbers since bottoming last october and think that they'll continue to exhibit strong growth numbers going forward. >> more brave news this time on yahoo!. the numbers are out in terms of quarterly numbers. the estimate was an 8 cents a share profit. estimate on revenue is $1.1 billion. jim goldman it, looks like these numbers are better than specced. what can you tell news. >> so far these numbers are better than expected. let's get right to it here. the estimate as you said was eight cents a share. yahoo! reporting ten cents a share beating estimates by two cents a share on net revenue of $1.36 billion excluding the company's traffic acquisition cost. the apples to apples estimate there is $1.15 billion. operating cash no, this is yahoo!'s wave talking about ibada. comes up a little light. 3 $5 million v

introduced in the budget to stimulate new investment in what we are seeking to do is an investment led recovery. the capital spending we have real-- reallocated, walleck falls in 2010/11 is vital to doing that and we will continue to back private investment in our country and these are the figures i want to make clear to the house. >> as chair of the party of the high group by become deeply concerned about the iran facing trial by the revolutionary court on the 11th of july on unsubstantiated charges with no evidence offered against them for good will the prime minister be willing to meet with me and representatives in britain to underline his and i hope our collective support of the fundamental principles of fairness and tolerance in the treatment of these and all ba'hi's in awe iran? >> mr. speaker these are difficult issues he raises and i'm sure the whole house will share my deep disappointment of the recent behavior of the iranian regime. his appointment to the manner in which legitimate demonstrations have been subverse, a disappointment to the freedoms of the iranian people and

traditional wood by investing directly in equities. when you so much the bottom line is that we need to keep it simple. you can keep it simple and educate yourself the right thing to do understand. and you so much the author of the only guide to alternative investors. still to come lesser known movie titles opening this weekend at theatres...could it mean the end of this summer's blockbusters? but first...ira epstein of the linn group joins us from the c- m-e group...ira it is scenes like the bulls are squarely in the car receipts when it comes to the stock market and the question i want to know is how long is the right going to let's push pork instead of the easter parade this is the earnings parade and this goes on until that earnings season is over until we get the numbers and. thank you so much ira back with ira after the break. atinum sweet corn -- 8 ears for just $2 with your club card. safeway just lowered the price of summer. more or back everybody ira epstein of the lynn group runs up front as see any group and will top four s

investment-led recovery.pital spending that we have 2008, 200'2009, to '9 and is vital to doing that and we will continue to bank private investment in our country and these are the figures i want to make clear to the house. >> as chair of your party the hyde group i've become deeply concerned about by trial in a revolutionary court with no evidence being offered against them. will the prime minister be willing to meet with me to underline his and i hope our collective support for the fundamental principles of fairness and tolerance in the treatment of these and of all of those in iran? >> mr. speaker, these are very difficult issues that he raises and i'm sure the whole house will share my concern with the recent behavior of the iranian regime in which legitimate demonstrations are suppressed and the freedoms of the iranian people, people due to stand before a closed court on the 11th of july, disappointment that the iranian government has expelled two of our diplomats and detained several of our embassy sta

if you are continuing to informs in banks -- invest in banks every week, give some thoughts to investinggood banks, not the bad ones. >> thank you for your advice. i appreciate it. >> mr. paulsen, you're recognized for 5 minutes. >> thank you, mr. chairman. mr. allison, you mentioned you could not comment on some of the existing negotiations and discussions you're having with some of the banks given they're trying to buy back some of the warrants they have outstanding. >> yes, sir. >> i've had some questions come back to folks i'm working with, but you also mentioned in your testimony that if treasury and these firms or these banks cannot agree on a fair market value for these warrants, that the warrants would be sold by treasury on a public auction, correct? >> yes, sir. >> is there a timeline on that public auction of when that would be? is there a time frame that would be put in place when the auction would actually take place? are there guidelines, stipulations you can share? >> yes, sir. thank you for the question. we're actually working hard on those guidelines now. they're not yet

bush as well as michael yoshikami, president and chief investment strategist with yc investment adviser. gentlemen, good to have you on the program. tony, let me kick this off with you and ask you about what you feel the economy is telling us. we've got a stream of earnings out after the bell and of course there is some disappointment because we're not necessarily seeing those green shoots in all areas of the economy that a lot of people would like to see. what's your sense second half of the year? >> it's really been pretty much of a mixed picture for the earnings. strong companies are generally doing well, but my question is how high can a dead cat bounce? i think that's really what we're looking at. we stepped back from the abyss on the economy. i think there's a little bit of the euphoria for that. and some money that was on the sidelines is coming in. so there's money to make in the short term. there are lots of drags going forward. >> going into the second half of the year, we've got a number of proposals coming out of the obama administration. do you think that's going to have a

you may have missed the investment opportunity of a lifetime. >> we have a waiting list of people to rent and buy. >>reporter: this man thinks he didn't. he purchased 250 homes in detroit betting the motor city will rise, again. >> when we find a nice street, we buy all the available inventory on the street. >> why is this a good place to put your money to work? >> it's a gd question. i get asked it a lot. we are buying homes in that range and we are able to offer them at better prices. since everyone is going to need a place to live, we are offering value. >> his company invested between $10,000 and $20,000 a home. they have been able to flip it for a 30% -- it's far from a safe bet. home values are down 45% from their peek in 2005. >> this house, since we acquired it has been broken into. i didn't know that until a minute ago when we walked in the kitchen. >> really. >> someone has kicked in the door. >> reporter: you have seen a home that's foreclosured and in shambles and in the process of getting fixed up. here is the finished project. for this to work out, you have to get someo

we need investment in colombia. it is the only way for my country to prosper, to overcome poverty and to improve conditions. the rate of in puzzlement has passed during our administration from 12 to 14%. we have had 24, 25, 28. even in the middle of this economic crisis, during the first quarter, we had an investment rate of 25%. foreign direct investment. in the past it was between 500,000,001.5 billion. during the last years, we have had 8.5, 6.5,, large years 10 billion, 564 million. this year, until june the fifth, we had 3,333,000,000. we have had a degree-- decrease of 60%, but in comparison with the international trade, our economy has performed a gr compatibly well in the capacity to attract foreign direct investment. we have introduced many structures of reform, but every day we consider that we need to adjust our framework to advance with new reforms. it is necessary to have a clear goal. what do you want to reach? what is the place that you want your country to arrive in? is it a desire to have the clarit

he's gary motyl chief investment officer at templeton global equity. >> susie: just a few years ago, everyone was jumping on the ethanol bandwagon, but gasoline prices dropped and credit costs soared. now, ethanol is being back- burner. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for friday, july 17. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. >> susie: good evening, everyone. the economy is impressive again. that's what president obama's top economic adviser lawrence >>> go higher in the months ahead but says that doesn't mean the stimulus effort has failed. instead, he believes the policy helped saved the economy. >>. >> if we were at the brink of catastrophe at the beginning of the year, we've walked some substantial distance back from the abyss. >> susie: but a major part of the administration's agenda could pose new economic challenges: healthcare reform. late today, president obama said his healthcare overhaul cannot add to the

your highest profile investments have been the three billion dollar stake you invested in blackstone and then the five billion dollars stake in morgan stanley. in retrospect, do you regret that? >>xiqing: no, why should i? >>friedman: because of the nature of prices, they have come down... >>xiqing: prices go up and down, but we still believe these are very good institutions and through the past year and a half, through our dealing with them, we met a lot of them, they are very professional firmsand we cooperate very well. >>friedman: is this a time to be more cautious or more courageous as a sovereign wealth fund? >>xiqing: as a sovereign wealth fund... for us, we are a much longer term investors, so it is very difficult to set any particular period of time, like we need to be more greedy or we need to be more cautious. no, we are looking at things in a much longer term. of course we cannot see 50 years, but we look at things 5-10 years. so for any particular talk of time, it doesn't really matter as much. >>friedman: what is your feeling about the euro versus the dollar over of the

we have some real estate investments in russia, starr international has investment in a bank.ots of investments and feel pretty comfortable. >> how does the environment feel to you in the u.s.? do you think we've turned a corner on the economy? commercial real estate is still a question mark out there. >> i'm very concerned with the economy. look, i don't see any evidence that we've -- that we have turned the corner. i think unemployment will continue to rise. and that's very, very concerning. i feel so bad for those people who are unemployed. millions of unemployed people. and i don't see big ipos, none of that, is taking place. so the economy's got a long ways to go, from what i can see. commercial real estate is in a tank. don't see any evidence that that's turned a corner. and so i think we have a ways to go. look, government involvement in business, deciding who the directors are, what their compensation is going to be, what they can and can't do, that's not the american way. we were a free enterprise country. yes, there are some -- there were some difficulty. we can deal

and ther than being new investments, they ardeeper investments to joint ventures that ty have already set up or thin the value chain: mponent manufacturers or suppliers. >> reporter:his positive outlook reston the governme's continued auto industry sport plus, at the operional level, maintaining low wages. he at lifan, xu yanping works ni hours a day with an hour off for nch, six days a week. holidays amount to 16 days p year. her monthly take he pay is $190. in new chinaan assembly line couple wou be hard pressed to y an apartment or own a car. >> ( translated ): ihe's an engineer or in managemt, i think we could afford e. if hhas the same salary as me, i'm afraid wcouldn't. >> reporter: the u.s. au unions may sdder at this hard reality but, for the b brands that build in china,t's their liline. although theovernment is efctively driving growth and the nsumer class is expanding, shop-floor wage hikes uld slam on the brakes. and china's communist party, won't let th happen. which promising news for those link or linking-up with china. take the case of lifan: april, mr. yin paia.i.g. a

, so i'm going to invest in a house, so people bought houses. and then certain of those in congress, not the least of which is barney frank, who is head of prestigious committee of the house of representatives right now, encouraged the fannie mae and freddie mac to make loans to poor people, so that they could have a piece of the pie, they could have a part of the american dream, they could own their own home. so with that encouragement from washington and from the administration as well, people began to apply for loans. now, remember, that these houses that may be sold for $200,000 are now worth $400,000 and some have sold that sold for $400,000 are worth $800,000 and the banker thinks that's a pretty good investment, i can make a loan on it, it's going up in value. now loans were marketed by mortgage companies, who had an incentive to place loans. they got paid a commission on the basis of the loans that they put out. so the more loans they had in the market, the more money they made. now, the smart money guys decided that they could enhance t

security with space values, investment resource and responsibility. ..

and as a result we've made investments or had investment positions in companies like netflix, shutterfly, virgin mobile, etc. we have a portfolio probably of ant 15 companies that we're -- about 15companys that we're actively managing. sphwhrs why would best bayh an interest? netflix? >> guest: sure. first of all, these are minority investments, but part of the reason why we do that is because if you look at our business, it's really dependent upon technology life cycles, so the more we can encourage the adoption of new technologies, new services, the better it is for our core business because we feel that we can exhale execute on that -- exhale execute on that from a retail perspective. and a lot of times there's a lot of vested interest in place that don't necessarily want to see new things come into play earlier than maybe they're ready for or the rest of the ecosystem could be ready for, so we want to act as a catalyst for new technologies that benefit consumers in a way that provides new value. >> host: so what is a product that we might see on the shelves of best buy that your best

made serious errs in their investment decisions and somebody br the consequenc. do not think they are so important for the financl ctor economy that the neral taxpayer ought tbe bearing the consequences. >> reporte but it won't just be.i.t.'s creditors and clnts who suffer from the company's coapse. c.i. is a major corporate suorter of the arts ranking in e top 10 in new york city. erika miller, "nightly busess report," nework. >> paul:all street got off to a sl start but ended with a late day rally. not much change in the ely going as t broader market shrugged offhe looming failure of c.i. group and strong results from j.p. morg chase. wel have more on those chase earnings ia moment. at noontime the dow was ne points higher, then big techlogy stocks powered higher ahead of google and i.m.'s after the bell results. and that gave the re of the market a solid late li. the w jones industrial average closed up 95.61 t 8,711.82. the nasdaq gaine22.13 to 1,885.03. the s&p 500 ro 8.06 to 940.74. in the bond market, the 10 yr note re 11/32 to 96-10/32 putting the yield 3

so we should be investing in more and r&d, but we need to be concerned about those investments just staying in the laboratory. we need to get them more quickly out into the private sector and sheep the market and provide concessionary financing so that we can use these technologies to reduce greenhouse gas emissions and keep our economy competitive. i think we are in violent agreement here that we can do things to improve the environmental stewardship while improving security that gives access to some of montana's resources. >> one final very quickly -- >> i wasn't quite say anything but i can't help it. [laughter] one area where we have actually put the technology in the field where it isn't an r&d and one area where it's not the government that has caused the reduction in the productivity of the natural resource, but the private sector because of the natural forces of the private-sector is natural gas. we've had a huge -- and your slide show a huge reduction in natural gas. it has nothing to do with the government. it has everything to do with the fact we have been good at implementing r&

how are you investing today?>> i ran the portfolio before i became because i'm always astounded under bad news situations the market seems to rebound. our value fund is trading about 10 1/2 times next year's earnings. that's a very low valuation. the average dividend yield of the companies we own is about 4 1/4. the tax treatment of dividends is favorable. 10 1/2 times earn wgz a 4% dividend yield for value stocks a little bit higher for the s&p. a lot of bad news, which dan may be implying-s baked into the valuation. >> nice. >> back to valuation you could look at u.s. steel and say that's trading at one-time sales which we own. or missal -- sorry, one time. that seems like a reasonably good point in terms of valuation. >> we look at amat. similar price to sales metric. i think it's a little too early. many of these companies over longer periods of time never earn any money. they did over the last five years. you look at ford. they've never earned any money. maybe in '03, '04, '05. since then they haven't earned

if you are continuing to invest in banks every week give thought to investing in the good banks not the bad ones. >> thank you for your advice. i appreciate it. >> mr. paulson, you're recognized for five minutes. >> mr. allison, you mentioned in your testimony that you could not comment on some of the existing negotiations and discussions you're having with some of the banks given that they're trying to buy back soft of the warrants they have outstanding. i have questions about another set of rules that apply to them. but you also mentioned in your testimony that if treasury or the firms can not agree on a fair market value for these warrants that the warrants would be sold in a public auction, correct? >> yes, sir. >> is there a time line on that public auction of when that would be? is there a time frame that would be put in place when the auction would actually take place? are there guidelines or stipulations you can share? >> yes, sir. thank you for the question. we're working hard own those guidelines now. they're not yet completed. when they are, we will provide more information.

and make money and i look at stock investing lies and bond investing lies and lies about alternative investments, so i don't have any one favorite. i will taupe you about lie number 21 because i think it is a big one and that is diversification has been held up by modern finance theory and all of wall street, as the reason why -- and how you ought to invest, how assets are valued, how risk is valued, and it is this foundation of the capital asset pricing model. the foundation of all modern finance and i think it is wrong. i think it is wrong. i don't think you end up saving money by diversifying. and i'll tell you why. a german pension fund who tries to diversify in germany ends upholding three or 5% of his assets in california mortgages. he's never been to california. he's never read the mortgage. after the crash he tried to find the mortgage to read it and nobody has it. the investment bank doesn't have it. nobody knows where it is filed. the judge threw out his lien case and he says you don't have a lien if you can't find the security and so what happens was, this german pension f

-russia economic or investment ties. those have been limited in the past mainly because russia's main economic focus has always been on europe. to the extent they're trying to move away from that it's on asia. investors by and large have made decision investment in russ not so much gauging th relationship between washington an moscow as looking as limiting factors within russia, whic are cons about rul of law or political risk. and those conditions still obtain. so strategically, yeah, there's opportunities. economically i don't see much brewing. >> you make a lot of good points here. let me ask you about oil and what's going on. the oil story and the dollar story. do you think the u.s. is going to be able to get more out of its relationship when it comes to oil in russia? russia and china seems to be teaming up a lot more than people expected recently. they're doing a deal in terms of oil. and certainly when president medvedev spoke to us he mentioned china very favorably a number of times. >> yeah, think theirect mplem

he suddenly it if you were bound to invest it in place to invest as and when stocks they've been a lagger run well and it's interesting for the last few days while the stock market in general has not made much headway bank stocks have come to the floor of one mexican bank stocks are bought kept abreast of market at the some interesting numbers are taking place now. today we have the first upwind and s&p index that is the index that tracks health prices since may of 2006. we are starting to see housing activity upheld start to move higher we have new-home sales yesterday was the first of movie was up 11% we also had inventoried of rundowns passed a broad on top of that when you think about that is the main asset class is residential real- estate. i want to talk about some more equal and that real quickly gdp for the second quarter estimate for the second quarter coming friday and there's no room to disappoint with the but especially given how much investors have bid up this market. would you think? i don't think there's really too much of an expectation is - 2 or something like that we may

and most people that invest money, all 26 of them, invest in cash. >> so you wound up with over $100,000? >> closer to 250, yeah. >> in six months? >> in three weeks. >> you're good. >> i told you that before. >> it sounds unbelievable. but the feds confirm it. and for someone this good, it was almost too easy to steal the identity of an old high school chum in seattle. >> i go to the funeral home. again, i'm in my uniform. i say, i'm so and so and looking up the death of my friend. she goes back to the back and brings a book with the funeral and who attended and his mom's name and maiden name and his social security number and everything. and now i have all the information that i need. and now i go to the public safety building and get a birth certificate. and now i go to north seattle community college and register for classes and get the student id card. and now i take that and i go to the seattle public schools and i get steve's transcripts. and i go to the department of motor vehicles and i get i.d. >> now you're steve? >> now i'm steve. >>> coming up -- people will call you a preda

is that investment going to save us? >> horses feel pain, too. joe biden is an idiot he ought to on the fox business payroll for the quotes he gives us. they will borrow $10 trillion and the healthcare bill which is another trillion or two on top of that. they will quadruple debt as a share of g.d.p. they are driving us into bankruptcy. people are running from the doll dollar. david: these numbers don't add up, do they? >> they create more deficit. but my gosh a net deficit? obama and biden show up at the end of the party and get blamed for the hangover. this is preposterous. look at the spending you had for years. homeland security, our sad war in iraq. farm subsidy. medicare drug bill. all of them make up the deficit. obama spending is 7%. as mike said, it is is an investment. and the company is companies do it all the time. a company going into receivership will borrow more to restructure. this is borrowing to restructure. not wasteful spending. david: the rocco comment is because of the way mike is dressed. i think he looks terrific. get a pi

and having invested accordingly, china invests 9%. india, 5% and rising. here, in america, we spend less than 2% of g.d.p. if it is true, that a civilization is measured by the quality of its roads, then we soon face a reckoning. if we are not careful, we will fall behind. we can continue to be a nation that mainly consumes, or we can try to move back to being a nation that invests and produces. and to do so, we need a 21st sentry national infrastructure policy that makes us more energy efficient, reduces our reliance on foreign oil. that means constructing smart power grids, designing buildings that consume less energy, making alternative fuels accessible and making public transportation systems more efficient. all of which will create new markets, for new jobs. and jobs that cannot be outsourced. for these reasons and many more, it's time to prioritize, but we need to be smart about it. simply throwing money and resources at the problem willy nilly will not pay the dividends we seek. in this moment of peril and possibility, to paraphrase a beloved presid

now ariel investments that long ago. and as you're looking now at the landscape, wall street still a lack of diversity there, you say where are the young leaders today in the business community, in the african-american business community? >> well, i think some of the up-and-coming leaders, the number one person i think about is don thompson. he's the president of mcdonald's usa, in charge of all the mcdonald's in the united states. i'm fortunate to be on the board of directors, and i've watched him closely and see that he has an enormous potential, a dynamic leader, and he's bringing along a lot of other leaders. mcdonald's has this great culture of bringing in great diverse leaders. >> let's talk a little about the markets as well. and you are a chicago bull at heart, and you're bullish on the markets. what are you looking at right now in a good day today? what are you focused on? what sectors are you focused on right now? >> we're continuing to believe the media sector's going to be a great place for us. we think that

investments in technology.ollowing through on partnerships like we did, like we just did in qatar a few weeks ago. tightening the belt obviously as a lot of companies have done here. and really also a renewed focus on the issuers. i think particularly in this environment, maria, there's a real chance to think about the issuers and be their advocate and speak with one voice on their behalf as a lot of policies come out of washington. you'll start to see us run some ads this weekend about what we call the currency of trust and how do we restore trust in the system, and i think a lot of times that advocacy also takes the form of partnerships. i know you're going to help us this fall with global entrepreneurship week. >> big entrepreneurship week which i know that i'm moderate be -- >> you're going to help us out with that, and we're going to do some sponsorship with the kaufman foundation and viacom. we're going to run some contests for -- i call it the search for creative capitalists. go with viacom from universi

is it time to invest this? >> absolutely to invest. it you're making a great chunk of change you're young. let's also think about iras. a traditional ira, regardless of your income next year, you can convert that to a roth. max it out at $5,000. >> caller: that sounds good to me. >> here's the thing, definitely don't pay down that mortgage. no need to put more money into that. build in a ira up. take total tax advantages of that and keep contributing to it. >> caller: i'll be sure to do that. i sure appreciate it. >> thank you so much. tom, i got an e-mail from mandy in illinois. here's what she's asking us, i have close to $110,000 in cash i'm afraid to invest anywhere. now i've lost a lot of money with both downturn and now have only $45,000 invested in my ira. i work in the i.t. industry and would like to retire comfortably at 63. where should i put my money? >> mandy rs has great real estate but she has this liquid, a single mom. she needs to get this money going to work. >> there's no question about it. it's the deer in the headli