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tv   Making Money With Charles Payne  FOX Business  May 26, 2015 6:00pm-7:01pm EDT

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our question every weekday. and that is it for tonight's willis report. thank you for joining us. and making money with charles payne is coming up next. have a great night, and we will see you back here tomorrow. >> i'm charles payne, and you're watching making money. secret to silicon valley billion businesses also known as unicorn, how big of these companies go from 0 to millions in a flash? they fill them, the hottest ipo2015 later in the show. this matters to you about b over the next year, individual investors are going to be is he accusing to buying these hot ipos, that have already gone through the roof. now, some of them are going to be worth chasing, but a whole lot. but prap the biggest cautionary detail for investors, hot topic making 17.50 for gig net, up 122%, premium sounds great.
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not necessarily. you see geek net was once sors force, and then linux. sounds familiar; right? well, the company holds the biggest rho were not for the first day trading moo have in history. the first trade was $299, it hit $339, closed at $299, up 698% in one day. today with that big premium, it still sold for 93% less than their first day of trading. so let's see how you can find out a different fate. and everyone remembers those good go-go days. let's meet our investment pros. we've got a new face with us this afternoon. ceo of code spread founder of adventures. did you dicome close enough? >> close enough. >> so anyway strategies jim everybody knows him, president of new haul capital, hillary with us, president chief
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investment and call us matt mccall. let's do it, guys. let's gig dig into the first real, real deal. now,ton seems like every other day another company comes out with another billion dollar evaluation in the private markets. mark cuban maybe sent up the first yellow flag or flare if you will. how worried should people be? >> i don't think so i think we should learn about what happened in 2009 and the ecosystem was not ready at that time to adopt technology. now we have four of to five screens this every household, tvs, tablets, iphones and smart, you know, smartphones. you have watches. and that means there's a massive appetite in the ecosystem to actually no, your honor technology. >> yeah. i get your point because i remember when we first put in fiberoptics in our office and, you know, we were doing some things on the web. average people couldn't get it on their tv, on their computers, we were definitely
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years early. what about the some of these secrets? how do- jim and i were talking about this. explain to the audience how all of a sudden instantly get so many subscribers or have access to so many people. >> well, they identify where their clients are. instead of actually using transitional methods, like, marketing, they actually identify the river, which is constantly flowing. so, for example, airbnb, the way they were actually get the volume of lifting, they stole it from craigslist and vrbo, and all of a sudden at it a massive lifting volume, they prevened that data much better and guess what? >> is this the open secret in sole convalley, you get enough money, you you go and borrow somebody's list and you're up and running. >> the idea is adoption. for you to actually identify growth patterns. and if you don't have a growth hacker on your team, you can't even raise money.
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>> wow that's slightly amazing. now, i'm ask the market guys, and i'll start with you, hillary. now, for me, there's something unseemly about the idea that uber, for instance, and we're going to talk more detail about it, but any company can be worth let's say 500 million, then a billion then three, and 10 billion, and then by the time they go public, hey, it could be yours for $90 billion. it didn't always work that way. there was a time when people got involved a lot earlier and were able to enjoy the ramp up. >> right. but the world has changed so much as we're talking about in silicon valley with all of these early round of investors that keep raising the valuation. so you have an uber, which with 45 billion, now we're at 60 billion. and for us to make money, the only way as an individual investor, anyone will make money is if uber only comes public with maybe 3% of the value, maybe $1.8 billion so the flow -- >> i don't understand.
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even if the float is shawl, the market cap, though, would be the same. >> but it's -- >> if it went public at 90 billion, it would still be, you know, someone's going to pay up for this thing. >> right. because you always have some people that are going to invest in ipos. all over the world that you have interest. but when it comes to uber, it's very interesting. there are plenty of aerobes out there. there are so many companies like uber, but uber did exactly what robert is saying, which is take the client and the customers and figure out ways to convert everyone to themselves and get scales. >> you know, they talked about more screens at home. >> right. home. >> the pods, the markets, so you're making a very good point that there's so much rounds of advancing, the valuation is shooting up before it goes public. but the fact is i also say a lot of mistakes and a lot of companies are probably never should have gone public in the original crash. they went public because because they put a.com in their name,
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they're not going to be able to go public. >> so you're better vetted. >> yeah. they're better vetted, but look at facebook. people who could have gotten -- bought it in the open market when it went public actually would have done pretty well. so it doesn't take ought outta all the value, but it does take out a lot of it i guess. >> chris wrote an article on shoppify last week. >> yeah. >> of course essie has been a disaster. >> horrible. >> i don't know anyone who bought it at the day of the high. >> yeah. why does one and work one doesn't? >> well, essie is a portal where you can buy things, you can only buy what they have at the moment. shoppify is a platform that let's small medium-sized businesses put their wears on the web. so is enabling and one is a portal. i compare it to groupon. it really just depends what they have at the moment. >> right. so they're limitations. >> yeah. >> and, by the way, they put
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on themselves, but that's the internal problem. all right. so here's the thing, matt. you've got all these private sector companies. if something went wrong, if one of these companies couldn't raise money and there was a panic in the private market, how would it affect the public market. >> i don't think it will be much effective. maybe one short one off, maybe some effective companies niche sector. but if you look at the valuations of just the publicly traded companies, the nasdaq is less than 20. we're not the at double evaluations, they may be at bubble valuations and a lot of people agree with mark, but when it comes to very public market, it's liquid. we determine the public the hedge if you understand determine of the value of the company. so i'm not as concerned, with private ones,. >> right. gerri: astronomical evaluations. >> it's very problematic when there's a new billion dollar company out there. already, guys, we do have some news reports out there. the irs got taxed, fees used in online service to gain access information from over
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100,000 taxpayers. i'm not sure if you'll get a refund, but the irs says they will be notifying those affected by the breach. second a federal appeals court just struck down an order for 5 million illegal immigrants. now, the order has been under temporary hold since february up to 26 states filing a lawsuit saying it was unconstitutional. and new york city uber drivers converting to cabs. can it be stopped and here's a big question? should it be stopped? we'll be right back
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. >> all right. guys, got to blow the whistle, let's open up the playbook, announcing there hasn't been anything
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this disruptive since maybe the atomic bomb. i mean we're talking today, there were protesters in mexico city. hundreds of black cars also showed up to protest, uber in london, where it used to take two years to get a taxi driver, remember everyone wanted to become a taxi driver. in new york, the limousine commission decided to go on the offense instead of the defense. here in the city this year over 14,000 for uber, a little bit more for 1,750 for yellow cabs. now, it's louring up to two years old, so far they have taken the bait. they say very fine in the process. we'll see. the ultimate unicorn is like a bull in a china shop. the big question is can it be stopped. and should the government intervene. let's talk about this, guys, because we hear speculation around the country and in different places. governments have actually intervened. so we know there's always going to be winners coming out
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of the private sector. we know that uber right now in my mind has become ubiquitous, so what are some of areas that some of the other areas that you think are really prone targets right now with respect to these private companies, these unicorns, these big time tech startups. and you mention airbnb to the hotel is there any. >> well, think so think about car rentals. we have to wait two hours to get a car after we land and our flight may be 30 penitentiaries. so you're not seeing problem-solving solutions that that are adopting themselves and that's really where -- it's not about monetizing noise, it's about solving problems. >> here's the thing though, mat, i mean i don't know. i lost track of all the countries that uber is band from, but should government step in at this point and, you know -- or just let the creative disruption process take it's place. >> you know, i love the creative disruption, i think
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this country that needs right now to move to the next lovely deny our dominance, so i think we have to let that go. that being said, there has to be some regulation, whatever they have over the taxi companies, should be put on uber as well, you can't let it run wild. so keep it the same but don't put any regulation on. >> it used to take two years to learn the streets of london. when you were a -- >> forget, london. might have been new york where the cab drivers are asking me how do i get to where i have to go. >> come on that's a huge problem. it's a service is industry. up the better service,. >> it doesn't mean the uber driver knows how to get there . >> but they have an apple powered gps device. >> they gave you there's. >> they're not knowing where they're going. >> the fact is at night the black cars aren't working. why isn't the this is years ago, they're making so much money they don't have to work late night shifts, so they had the small cars, the taxi service, so i think uber is solving a true problem.
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the consumer is better off today. >> to your point, if there wasn't a problem, uber wouldn't be around. >> i agree with you. >> that's a great point because you've been even in market, you all about the market, those medallians went up every single year and they were air got an to every point. >> but uber is just a first step. we're talking about driverless and to be driverless truck. and the truck industry is just scared right now because they're already announcing driverless trucks. so technology is changing the paradigm of the industries, and we have to accept. >> you know, when we start our show, i mentioned that you guys -- your company went public last week; right? >> correct. yes. >> my friend told me about it, my stock -- you went from $5 ipo -- you traded up to $39 maybe is the high? and now you're at $34. tell us what you did and why this stock should be up this much? because you went the ipo route
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instead of saying in a private side. >> yeah. and it has a little bit to do with the financial partners you into the public market. and at the same time there are people recognizing what it is. there's no enterprise solution right now in the market. >> does that mean in laymen's terms. you were saying with respect to your relationship with apple, mac computers and how does it work? >> well, think about it. it's, like, right now if i'm an enterprise and, you know, it doesn't matter if it's wells fargo and i want to employ maximum solutions within my enterprise, i have to worry about data security access, file management, and there's currently no off the shelf solution like microsoft has with the inclines, for example. and what we do, we created these solutions for mac. . >> are you the only ones with it. >> we're the only ones that are working stable and fortune 500 companies that fully adopted our solution. >> and now that you're public, do you feel like this was the right move for you? >> this was perfect move for us because it allows us now to
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roll up companies be it allows to us grow and have the headroom that we need to actually scale because we came from hawaii. with a palm tree. [laughter] >> that's so interesting because your company went public and you're going to take that money and grow and be invest it into new technologies and buying other companies. the problem with so many of these ipos, charles, is that these companies are going public, that might not is going right be back. >> adventure capitalist. it's an exit are strategy, it's the whole fourth place invest in your future. >> that's why i was saying obviously there's a need for it, and we're not talking about reverse take over, reverse ipo, it's a pretty well known name. >> correct. >> and what you're doing secondary seeing howl its done. >> let's see. there's a lot of things coming up. there's -- obviously a lot of information perspective. so i'm not allowed to disclose it. >> i've got you. >> you know, it's just, again, you go from 5 to $39, we just
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did the cautionary tail with linux, but this is different. >> this is different because we validated the technology from hawaii. you have professional -- >> are you profitable yet? >> we're on the cusp. >> but why would you price it at $5? if it's in less than one week you're trading at $39, and there's some type of miss prying of, the ipo in this day of age, something seems wrong to me. >> well, usually when that happens, they blame the investment banker. >> yeah. the banker. >> i mean shake shack quadrupled. >> i mean there are a lot of stories out there for businesses that are solving problems, not story stocks. >> right. i just wanted to see this market come back where there are more 5 millraces, crowd funding is not going to do it. i think all of these things that are -- and why didn't you go a different route. >> well, you have to
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understand when you look at a vc market in silicon valley, it's an idea state. you have to put the money at $25 million evaluation. that doesn't matter if you're one of these big guys, if a guy comes to you and say i have this idea, they have to put it at a $25 million evaluation. that means the market is destroyed because the investors basically destroyed the vc market. so the angel investors are already doing -- >> so there's a level that's missing. >> correct. >> that was there and i think that's hurting america because there are a lot of great companies, potentially great companies that needs just $5 million. >> you've go on at it. >> we've got a payne 101 for you, you guys are curious about shorting, going short. especially when we were off 230 points today. we'll explain it all to you when we come back this allergy season,
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. >> hello and welcome back. hey, i want to read an e-mail i got from one of my subscribers. late last week you said in your morning commentary you had an up coming earnings chart that lists short ratio, could you explain that and what numbers are positive and negative? sorry to be so uninformed. well, david, that's not uninformed. that's a great question. for the most part, here's the deal with shorts. shorts are professional investors that are considered well armed because they've got a lot of information and a lot of time they've got a lot of patients. now, essentially when you short a stock, and this is just shorting 101. you borrow it from the firm,
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you sell it and hope that the stock will go down. you sell it at 100, it goes down to 50, and you buy it. now, when i see a number, and i'm not sure what the magic number is, but when i see double digits, like, 10% or more, i feel like wall street banking on the stock whatever it is crashing. now, often these short approximations the higher they are, they put a lot of pressure on companies, but also these short positions are just looking to destroy the company even when their information is wrong. so what i try to do is when i'm long with a stock, and i get profitable. i normally it sell it faster than i normally would. right now the top 21 most shorted stocks, so you can see the shorts are really, really tough and it's really dangerous to bet against these guys. it's tough. when the market it's shaky and
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people are in these particularly these high flying stocks, they get nervous, and they should. i'm going to ask you, you're annual publically traded. what would and you do how would you handle it once the shore, okay. i'm going to go after this company. >> as a ceo, i'm going to focus on growing the business because a real business doesn't have to worry about shorts. >> really? but i don't know figure with that because especially if you get one of these big in the guys that go on these vendett vendettas and they hire experts, they're not betting the stock goes down. they're trying to make these companies go out of business. >> they're destroying these companies and these are big companies that don't have problems and a lot of times you can't recover from the -- rake away half their market cap. so i don't think you need to be concerned with i agree with you. long term the businesses is correct and you continue to do it and you continue to make profits, you'll get over it, but some of the companies can't make it through and that's the problem. >> i understand and the market
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has created a virtual world. >> yes. >> and the visual world doesn't care about that, it just cares about the marginal profit. >> and also there's an opportunity per squeeze. >> uh-huh. >> so i wouldn't want to short a stock if i saw a very large position. >> right. >> because if my information is rong whereby i'm going to get caught on the wrong side of that bet. >> right. and on shake shack, the theory there because it's no way the evaluation on shake shack could ever be justified, but the concept there is it really has to do with the short and the shorts are being squeezed -- >> although they had a day in the sun today. and i think ultimately the smart shorts ultimately win in the long run, but they do get this thing where they want to just destroy a company. i've always joked that, you know, i know people have shorted a stock at $10 and they're still shorting at 50 cents. like, give me a break. have made never satisfied. they really believe that these companies should go out of business and that's why you get these short squeeze. when you get them and i mentioned those 21 top shorts,
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there are a few other names that are 52 week highs and the shorts are losing their shirt. but i've got it tell you it's really tough. well, congratulations. much success. we wanted to bring in someone who is going through the process, and i really think you helped out our viewers tonight. >> thank you. >> memorial day may have just passed, but it seems like the summer, they began a long time ago. so is is the market taking a breather or is something synagogue ongoing here. we're going to talk about a big down today. stick around and we'll figure it all out for you today super poligrip seals out more food particles. so your food won't get stuck, and you can enjoy every single bite. eat loud, live loud, super poligrip.
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♪ charles: all right, guys. if this market feels lackluster, that's because it has been. okay. in fact, as we entered in today's sessions, we
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had the third longest streak. this is crazy. you know, and then, of course, the market today gets hit. so is this a sign that maybe it's time to ease up a little bit? time to get out? now, while every bull market is different, from a historical basis, it wouldn't be surprising if we had more time here. this is your current bull market. right now -- actually i should have reversed though. usually they'll go up to eight and a half years. we're at 6.2 years from the bottom. if we just were to go with history, we got some ways to go. remember, bull markets don't end on a whimper like we have today. everything about this market has been different. maybe the crash could be indifferent. i don't think so. let's find out what the panel has to say. of course, every time the market dips a little bit or moves sideways or the volume vanishes. people get nervous. could that be the
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catalyst to taking us lower. >> we talk a lot about the fed. i think we all recognize the fed will be raising rates. and yellen, the number two most powerful person, fisher are trying to calm people down. it will be light. it won't be until later this year. housing performance. housing is a big driver. they perform new home sales. up almost 7%. i want to warn people. doldrums don't mean you'll always pop. it means a move in either direction. charles: there's a calm before the storm. >> yes. charles: i read the economic news differently. i thought it was pretty good. durable goods, we had the last month rise. this month higher than expected. and fisher, i thought was the guy who set us in motion to be down. maybe we're so afraid of the fed raising rates, it felt pretty firm that we would get action this year. >> what stanley fisher said was that rates will go up. (?)
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that's what the markets heard. it will be coasta costly to refinance for everyone out there. >> come on. >> okay. but that was a catalyst. but that doesn't mean the market is going down. i don't think there's a catalyst that will bring us down. we have to wait until the next earning season. we have gdp that's going to be revived. >> revised lower. to a negative number more than likely. >> look, we've had so many economic indicators to your point that have missed expectations. these housing numbers we're getting now, we knew they would get better once the winter weather fell by the wayside. i'm not surprised by that. what's the real speed of the economy? we won't know until this rubber band snaps back a little bit. we need the may and june data. >> the state of the economy is lackluster and slow. everyone watching the show says, you can tweet me now and confirm this. we hear it's bad out there. people are complaining. small businesses have fewer employees. no one feels great about
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this. the speed of the recovery, i think is really lackluster at best. >> i know. but unfortunately the speed that we have, 2%, is exactly what the market has needed as far as the stock market is concerned. it's kept the fed at bay. the numbers you mentioned went up and down all over the place. it's exactly what the stock market needs. i don't care if they raise rates. they'll not do anything until the beginning of next year. let's get the sell-off out of the way. >> one reason is it's an election year next year. the second thing is it's the follow throug-through. how big is the next rate? >> first and foremost, i wish rates didn't exist. i'm being honest about that. i feel like their work has been so inconsequential. if they raised rates --
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what would they do? right now, they have very little credibility, the federal reserve. they have to go back 20 basis points and lowering them again. >> that would be a disaster. >> absolutely. charles: the small amount of credibility they have would be gone. >> and there's no bullets either. that's also what's gone. you have the credibility and the bullets aren't there to be able to really do that. yes, that could be what could weigh on the market. and you do that in the face of quantitative easing, increasing -- >> let me ask all of you guys though, this sort of bull market, then today's pullback, does that make anyone somewhat nervous? more nervous they were than two weeks ago, jim? >> i think oil, and it's been quiet. that makes me more concerned. as they talk about saudi ramping up its own production. we know our own us frackers can turn it back on. charles: you mean saudi arabia pumping out more? >> keeping the levels high. i worry about a market
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down in the price of oil, which we know actually costs more -- the benefit to the consumer does not outweigh the damage it does to the market. charles: strong dollar was the catalyst. strong particularly against the yen. one week it's too strong. next week it's too weak. will hurt main street. >> there's no doubt the dollar will be strong yeayear-over-year the second quarter. all the excuses about the dollars, they will be here. charles: you covered the shorts today. did you cover all your shorts? >> i did not. charles: all right. leave it right there. all right, catch "strange inheritance." friday, 9:00 p.m. jamie colby meets a family who inherits a landmark on the highway to las vegas. decrepit thermometer next to a once lucrative restaurant. a roadside attraction. alligator and crocodile ranch 9:00 p.m. right here on fox business. parents sending your kids to college, how
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about after they graduate they come back home and camp out with you. overwhelmingly, the majority of you are okay with it. i want to hear from the moms and dads with 12th graders like me. @cvpayne. i'll be right back. ♪
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♪ charles: hey, i don't know if you had this conversation with your kid. they're going to college. 68% of them say they after you to support they believe back. most of you say let them go. let me they halet them go.
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>> and now, it's time for "upon further review." [laughter] charles: hey, you know what. we feed them, clothe them, 68% of our college-bound kids expect you to do the post college kids. 60% of parents say they want to support their kids. kenny said, yeah, i have
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a big house. why not, let's save money. hilary, "upon further review," i guess this is the new norm. go to college and come back and bring the wife and kids with you while you're at it. hilary: that's the reality today. in a perfect world, theoretically, the kids should not come back. they should go out there and make their own way in the world. they will make them more independent and more aggressive in the work force. >> i know you had one of those blue-collar dads. she just said in the perfect world. get out there. do what you can do. >> i think we have to change the reality. my father, with his summer job, he could pay for his tuition. my mother went to a public university. it has so changed. student loans as you talk about, are feeding the rally or the appreciation of college degrees. we need to rethink the whole process. we have to talk about financial literacy. do you understand if you go to the college of your choice, you might
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be up to $50,000 in debt. how are we as a family, how are you as a family going to cover it? >> they should do that before they sign off the loans. i understand that i'll never be able to pay this thing back, but i want to be a poet. >> are you saying they should understand personal responsibility? come on. charles: at some point yes. i read this later. how we even got summer vacation. they had to work the farms. they pulled them out of school because that was the harvest time. we're talking about personal responsibility throughout our entire childhood. now, you know what, you may catch on to this thing. >> i try to find this study from 20 years ago. thirty years ago. i couldn't find it. because i believe that it's probably the same thing. as a parent, you had the empty nest, feeling your kids are leaving. you're feeling old. you want your kids to come back. take care of them. i moved out of my family. first to move. my mom didn't want her to go, the last one. making the bedroom nice for her. they like that i think.
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i don't know if that's changing too much. i think parents want them there. >> you went from having a lot of kids so they could support you in your senior days to now actually supporting your kids through your senior days. charles: that's a first world problem. the greatest birthrates are in the poorest countries in the world. you have to have a lot of kids. hopefully one will make it through and pull the rest up with them. look what's happening with europe and japan and here. all this slowing up of family formation, household formation, it slows the economy up. >> it slows the economy up. it slows the collectable tax base. someone has to pay for this debt we're racking up. >> do we really need college at all? no, we shouldn't. it's almost like an extortion. you have to go through college in order to get x jobs. why do cops have to have a college degree. >> the problem is it's
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what a high school degree used to be. >> except you have to pay big money. charles: i think it's the transition part that everyone is having a problem with. ask payne speed round. tweet me. i'm @cvpayne. we'll be right back. ♪ you total your brand new car.
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♪ charles: all right, guys. time to answer your questions about the market, industries, strategy, we're here for you. it was a rough day. a lot of people want to know. hank said, i own micron, cvs. any thoughts? doing well with others,
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but i loss with the first two. micron, i must admit has been a major disappointment. so has cvs. i think they'll come back. the one on that list that worries me is micron. look at that chart. it's ugly, ugly. they've had miscues. one of the classic stocks. when it goes up, it goes up. when it comes down, it comes down. i would not be in a rush to add onto this one. matt: i would add here. huge support. so if you add, add here. if you close below 25, this is a huge leg down. i'd get out of it. fundamentally it looks attractive, technically i totally support it. >> anybody else on micron? >> on the semiconductor industry in general, the pricing is so competitive. micron can't necessarily compete. charles: that's always been the thing. you never want to invest them. when they get hot, they get hot. joey, what do you think f boeing here?
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will the bullish economic data help it go higher? i always say the numbers are 25, 20, and i forgot what else. but over the next ten years, $5 trillion in planes will be sold around the world. occasional hiccups. one competitor. boeing is finally firing on all cylinders. i would hold blind for the next five years. >> i very much agree. best in class. don't think air travel is going to be reduced any time soon. they're one of the two dominant players. >> last week, we had domestic airline carriers complaining about airlines people never heard of. arabian airlines coming into the markets. there are routes going around the world, people couldn't pick on the map. but it's lucrative. >> i agree. you know, these numbers are very volatile month to month. you have to look at the
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long-term trend. >> tony, what's wrong with nsc. this railroad has been in free fall. should i hold or sell? >> it's been in free for fall. most of these guys hit hard. (?) i generally like rails. i'm in kansas city southern. i hate to see you sell it and regret it a year ago. if that's the kind of investor you are, hold it. if you're shorter than that, look for something to buy on any current weakness. depends on who you are. trader or investor. matt: i would hold on to it. 20% off its all-time high. it's okay for sectors every few years to pull back 20%. it's actually healthy. i like it here. >> but the fundamentals of the business really did change in the railroads with coal decreasing. charles: they made up a lot with gas. frac sand. if the economy does have a pulse, they could do well. what i do love about the railroads, the barrier
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to entry is pretty hard. you can't start one tomorrow. california dreaming, get this. $500 million for one la home. you talk about a speck house. thirty car garage. a monaco style casino. you want to buy it? tweet me. half and half. is this a sign of the top of politicians licking their chops? politics of envy. tweet me @cvpayne. ♪
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meufn♪ charles: don't look now, but the mcmansion is back. i'm talking about back, big time. in fact, after peaking, you see right around here in that third quarter of 2013, you know, the size of homes started to go down. look at this bad boy. the gargantuan homes have soared to all-time highs. even in my neighborhood, i love it, it's all the
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rage to take two houses, smaller kind of houses and make them into one big house. so i kind of like it. i think it enhances the value of my house. the question is, can this go too far? in los angeles, now in miami, building is the mother of all spec houses. up 30 car garage. not 30,000. and a monaco style casino. the home and guest home gawker calls obscene. $500 million is the price tag. i think it's excessive. and it's the kind of thing that will work in the hands of those who preach against class warfare. even if a foreigner buys this thing, you can tell it will be a monstrosity in more ways than one. $500 million. what do you think, matt? matt: i love this. one, it's an 8500 nightclub. girls, you coming home with me. i have my own nightclub.
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this is the complete honesty. it makes me want to go home and work. it gives me something to shoot for. maybe not this big. who is buying this? what did they do to get there? >> i worry about the heating bill, i have to be honest. it's fantastic someone can afford this. maybe a little over the top for the average person? i think so, yeah. charles: to matt's point, when i first started on wall street, i made 13,000 a year. the one thing i bought every month was architectural digest. it was always one of the things that drove me. but i worry the flip side of this, oh, look at this, how can someone have a half a billion dollar house and other people are poor. i think the politicians -- elizabeth warren would jump all over this. >> this is really crazy. this is really ridiculous. charles: well, you own a jet. >> but to get one place to another, okay. charles: to matt's point, you may be at home.
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it's midnight. i don't want to go to the club. i'll open my own. >> this asking price is more than two times the second highest asking price in this area, the beverly hills home. thirty-seven homes, i was reading, they're actually down. in beverly hills, down almost 37. down 27%. here's the largest asking price, not just the largest, but by 2x. meanwhile, a lot of 5 million-dollar homes are selling off. charles: here's another thing for politicians to understand and people at home, the 1% of the 1% are the ones that are making all the money. don't be angry at the plumber making $600,000 with five employees. marching owners. impact of this deal. timewarner cable. >> cablevision has been on fire the last couple of weeks. i just think it's underlying that there will be a lot more m&a under many sectors. health care, biotech.
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>> i think matt is right on the m&a side. i would prefer to see deals like verizon, aol. comcast buying universal. get that remote around them. i think that's a better deal. charles: these are two companies sort of like, they float along longer, their model is under tremendous amount of strain. >> you have to wonder, in some way this was a merger of desperation because content is leaving. >> i want more competition in that market than less. they always talk about these consolidations. they'll be better for the consumer. this is not better for the consumer. >> they're worried about directv. a lot to worry about. >> a lot of competition. over the top service. charles: in the cable area. competition to cable as the business model. within the cable area. the first communication they put out, this will give us more competition. they're worried that maybe the federal government won't allow this to go through. we talked a little earlier in the show. i want to talk about the threats leading into the market.
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strong dollar spiking. particularly against the yen. spooked a lot of people. talk about a rate hike, spooked a lot of people. gdp revision. friday. which, hilary, are you most concerned about? >> i'm concerned most about earnings. you have to have an economy buzzing along in order to have the stock market continue to rise. charles: you need an economy for the earnings at some point. >> i mentioned earlier. i was talking about oil. hilary, i thought you and i would be bffs because of greece. >> i did mention greece. >> just enough so they won't make their 1.6 billion old payment to the imf. charles: we have to give scottie a shotout. she was pounding the table on greece. she tweeted matt personally. matt: what time did she get up to do that? i'm worried that a normal healthy pullback can turn into a bigger pullback. it can scare everyone. >> this is a flip from the last time i was
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here. i'm actually pretty optimistic. i have to be honest with you. the noise we heard from yellen is noise. it's short-term. i'm losing the opportunity on pullbacks. charles: you cover all your shorts, let us know. thank you for watching us. every night 6:00 p.m. can't watch it. dvr it. now, lou dobbs. lou: good evening, everybody. i'm lou dobbs. iraq shia militias are launching a major operation trying to retake the city of ramadi. their operation comes two days after defense secretary ash carter questioned the iraqi's military commitment saying they had, quote, in will to fight in ramadi. we take the islamic state advance tonight. we'll be talking with roger scales. also, a record-breaking night of violence in the beleaguered and poorly served city of ba

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