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Motley Fool Hidden Gems Investing

Motley Fool Money: 10.30.2009

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 30 October 2009

⏱️ 18 minutes

🧾️ Download transcript

Summary

The economy grows more than expected in the third quarter.  Edmunds.com kicks the tires on the Cash for Clunkers program. Amazon.com, Target, and Wal-mart begin rationing deeply discounted books. And McDonald’s says goodbye to Iceland. In this installment of Motley Fool Money, we give our take on the week’s business news, debate the relative merits of Chunky candy, and share three stocks on our radar. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Welcome to Motley Fool's Money. I'm Chris Elton. I'm joined by Motley Fool's Senior

0:08.3

Analyst Seth Jason, James Early, and Shen and Zermy. Guys, happy Friday. Happy Halloween!

0:13.3

Happy Halloween indeed. On today's show, the book-selling war is heating up. Warren Buffett

0:18.5

wins a beauty contest, and people in Iceland are now going to have to go a hell of a lot

0:22.8

farther to find a Big Mac. Can you say, Big Mac? Absolutely. It's a podcast. All that

0:28.5

plus, as always, we'll share three stock ideas, but we begin with the Big Mac grow. GDP grew

0:34.1

at an annual rate of 3.5% last quarter, the first positive quarterly growth in a year,

0:39.9

durable goods, and residential real estate helped fuel the growth. Shannon, you've seen the numbers.

0:46.0

What does it mean for investors? Well, you know, Chris, I like to compare the economic reports

0:50.0

to Weekend at Bernie's too. Was that film perhaps better than expected? Sure, was it still

0:54.4

lousy? No doubt. Jobless claims, horrific spending and income, both down. The Federal Reserve

1:00.8

pulling the plug on the Treasury Purchase Program, which is going to cause mortgage rates to

1:04.6

float up. That's all, you know, better than expected. Perhaps, still bad news. I have to disagree

1:09.6

with Shannon. And here's why. That's not the thing from Weekend at Bernie's, which is why this

1:17.5

is a great metaphor. It's because of the propping up a dead thing. That one on it. Sure, sure, sure.

1:22.7

Durable goods orders housing. Does this wait a minute? That's all government money flowing

1:27.7

into prop this up. The real test of the economy is going to be what happens when all of this

1:33.9

government large ass runs out. And we've got savings still up. We've got incomes down. We have

1:40.5

got spending down and consumer confidence down. Those things all go together on employment is going

1:46.0

to continue to rise for a while. It's going to be a while before anybody feels like the economy

1:50.7

has turned the corner. James, I have to totally agree. I mean, we may be out of the recession

1:55.8

technically speaking, but don't be on my leg and tell me it's raining. I mean, if I were a company

...

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