What's Up On Wall Street - Jeff Cox, CNBC.com
Jan 18, 2013|
What's Up On Wall Street - Jeff Cox, CNBC.com
Transcript - will not be 100% accurate
1005 and the stock market is in positive territory the S&P. 500 up three points. The Dow up 38 points and NASDAQ up eleven. Ten year treasury note at 186 gold down nine dollars an ounce at 1673. Oil prices up a dollar a barrel at 95 dollars and 32 cents that's not good news. One thing you might be wondering wire stocks rallying today while it's predominantly based on two pieces of economic data they came out this morning. At 8:30 eastern time and I apologize for not reporting this number earlier. The jobless claims number came in at 335000. That was a very bullish number came to the numbers 37000. Less than last week and housing starts were up 12%. And 954000. So. Those two pieces of economic data the Dow futures were up about ten points before that data was released at 830. Immediately after that was released -- futures went up by about thirty point so we're sitting here with the Dow up about 38 points as we speak. Our guest now is Jeff Cox from CNBC Jeff good morning and welcome to the exchange. Want very I don't they have to. And great doing a great idea I love it any time unemployment goes down housing starts are up in the stock market's up it's all good right. Well I yeah I guess so I mean that stated. You know the markets kind of continuing on its merry way it is being propelled by a lot of money out of that. And the innocence of it refusal to get rattled by facilities headwinds that are coming out of Washington back at best couple things. It might want to just keep in mind our even the government -- That that the folks who produced this statistics together themselves. Said that these things might be subject to some. -- this from seasonal factors some things that two you know might to. Might might cause you know we'd revisit these first if you give massage a little bush and the other Philly Fed number came about just a couple of minutes ago to what it was really. Really ugly it was like a minus five point aired yet -- minus five point six there's reduced. Because at a minus side. Wouldn't buy despite point eight and expectations were plus five point 62 so that kind of shows you you know that that there's some money even this as far as the recovery goes and you know kind of not out of the woods yet I guess yeah. Jeff I wanted to talk to about this story in the -- in India Wall Street Journal I think you guys are covering it CNBC as well. The headline is is deceiving because in the headlines says mortgage rules aid homeowners. And I gotta say this is Dodd-Frank -- is this is something past several years ago. Tom talked to our audience about these new mortgage rules that are going to be released today. And how they allegedly. Are going to heed homeowners and I got I I was shocked when I saw the rule Wall Street Journal reporting it in this capacity 'cause I don't think this is good for homeowners. Yeah so to deal with this is is that these -- -- targeted towards the mortgage servicers these are like you know that it that the big banks into the kind of people that you pick -- these loans from the banks in the they they take Saturday or you know kind of at that more than that content company like nation star and act kind of the area who. Go out and special they specialize in delinquent -- expect and so basically what it does -- it lays down some some ground work. Forward for their roles that they have to fall 01 when they're dealing with their customers they can't be pursuing. Foreclosures while working with them to do modifications for one thing they also require them to you know provide better disclosures. In that kind of stuff and prompt payment crediting him correction of errors and that kind of thing that these companies aren't really frankly be doing anyway. And it'll go effect until 2014. For some reason that I'm not clear on myself. And it's you know it it it's just sort of you know one of these cut a window dressing sort of things to its amicus. Feel -- that these this new bureaucracy that we -- the Consumer Financial Protection Bureau it's out there on the job. Here's my problem -- -- you see here's the -- the flip side to a break it in Massachusetts has done the same things locally here they've said well before you -- you have to offer the person. Loan modification. Well -- what does that do to contract law you know like. You use you signed for mortgage you say okay I'll I wanna borrow 300000 dollar from -- bought by this house I'll pay you an interest rate of 3% for the next thirty years. And then you know for whatever reason you lose your job you have fallen hard times you can't make your payment now the banks are required to renegotiate debt. -- with the. Yeah you know. I I can't -- the big key word that you just used there is required in now and certificate you know it it it it's one thing. Food bank decides to say you know hey this is our best interest because we don't want to take on this. This property is probably worth a lot less than the customer rose we're going to be stuck with that dog of the property we want to renegotiate. With what would -- -- with with our customer right I think that that's fine I think you know what when -- starts you know. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- All all of the rules got thrown out for you know AIG in and everybody else you got bailed out to build out so you know why should we throw the rules as far as the consumers. Now let you know I guess you have to take both side look at both sides of the argument that what occurs to me is if on the mortgage company right -- number originating that -- And I know that every time somebody goes delinquent I have to renegotiate and and give them loan modification. I'm going to pass on a higher rate to the good people wanted to make the good people pay more work to subsidize the bad people. The army the united into the big belt on period in and I think that that's one of the you know that there's that big dangers here -- so it's. It it's kind of -- -- -- two sides of the same sort of -- Point it. I always get worried when I hear because when they say -- when you read or headline like this it's as mortgage rules aid homeowners with that means is I'm here I'm from the government and I'm here to help. I bet that's never good Jeff. Yeah yeah -- always have probably ever actually work out a post -- upon later today if you know if if if all the stuff there's also hunky -- and why won't the bed sort tickets for the office that it that the panel that -- kind of ties in. Would would -- whole thing of you know whether -- this economy you're going to be able in the bill to run on its own and I had -- I'd I would say that the answer that question is. If we've got it up but it does via our lifetime. All right well. Jeff I want to thank you for joining us and appreciate parents are. Jeff Cox CNBC you get pageant AME with it would be -- doing. Greatly with the government is to this is Dodd-Frank. Chris Dodd Barney Frank both by the way retired right they're they're out of David -- is out of the senate. Parties out of the house behind -- device not a and this is with me the gave us this is their parting gift in the gift is this. If you borrow money from the bank. The banks are now required. To offer you loan modification. If you were late on your payments they can't for close anymore without offering you loan modifications. I think it's a mistake. Because it adds cost to the bank so what it's going to do is for your EU there you wanna go out by her house in the next five years. You are going to be subsidizing. The people that don't. Paid their bills as senator bill -- right Europe you've got that great 800 credit score you pay your bills on a timely basis. You're going to be penalized in your gonna subsidize the deadbeats -- tells me that I would be better served. And by worked under the table. In the states and went out bought a house didn't paid -- Now that mean item I and maybe if I'm married and illegal there and had a kid geez I mean heck but I don't forget that there's a life.