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>> even into this area that hasn't become available to us.

the high collectible skype products we used to carry they are no longer in the state of indiana. that has changed, that's a huge ticket for us. but our customers weren't coming into this area whatsoever. same thing about madam alexander, there aren't as many collectors for those lines. >> sorry to interrupt you. we've got a delay on the line. sorry if our viewers don't think i'm interrupting you. you downsized your store to lower your cost, you're doing these things that you can do. do you think that you're a sustainable level, you're above water now because you downsized. could you keep this as a sustainable trend, keep this going for many, many years or do you see this lower price pressure from the big box squeezing you out? >> i have to do two things to

keep us ahead of the game. one is i have to keep my internet more user friendly, appealing to our community is who keeps us in business. when we can get online and find out when we're having special events if they could react to measure internet site, i need to react to that and make it more user friendly. that's one way i can compete. secondly, i just have to get the word out and be as many events in this area as i can and bring -- invite people new and old all the time into the store. that's what's going to keep me afloat. make it a happy place. >> and there are people, there are people who will come in. there are still people who will say despite the convenience and the priet advantage of the internet -- being price advantage of the internet i like the convenience of the store. >> they can come in have it wrapped complimentary and be on their way to the party.

that's our advantage to the internet of course. >> i'm sure your advantages are hard won, sounds like you get it well enough, and we're going to be interviewing you ten years and keep in touch until then. >> that's so nice. thank you very much. >> if you happen to be in carmel, indiana, go to kilt and caboodle. it sounds like a wonderful business. what it marines for retailers, director of consumer research at thomson reuters, retailers know that there's no action like talking to a shopkeeper. >> how they're dplaig their merchandise and -- displaying their merchandise, 2013 was an uneventful year as far as fashion and that of course hurt the apparel stores. however i was there this week and i noticed for the spring we

could have some items that could help the apparel stores. >> what's your sense of these numbers that you have seen? in the last 24 hours, we have seen conflicting messages, some things look soft and yet cars and appliances and you know household expensive goods are doing well. it's a weird schizophrenic consumer. >> well, the consumer is definitely shopping. they're just shifting their behavior. what they're doing is buying the big ticket items. what we find is the home values go up and when the home values go up they feel more confident stepping them -- extending themselves. they feel like they have more money, credit, for the back to school season, teenagers faced the highest unemployment rate since the beatles and parents use their credit cards to fund their spending. >> there's still some insecurity among the consumers.

even two years after prices and economy started to rise, gas prices are up because of syria worries and employment numbers weren't as strong and i'm worried about these interest rates, the consumer is still staying flexible. >> you hit on unemployment which is very key. that's the one key economic indicator that consumers feel very well. if they see that high number they are going to put their hands in their pockets and stop spending. but to shop for value, teenagers are trading, no longer going to abercrombie, or aero postale. instead of department stores they are going to tgx and ross. >> they are shifting spending habits. overall the economy should still be okay? >> should still be okay. in fact we're going to see the third quarter going to be a

little bit slow compared to a year ago and we are going osee an improvement in the fourth quarter for the holiday season, especially for amazon and netflix . significant gratification, where can they buy it cheaper can they buy it on amazon for significantly less. that's why these retailers are doing so el with. >> that's why taneen was doing so well. thank you for coming. >> thank you for having me. >> i wanted to explain an unhappy anniversary. five years ago lehman brothers collapsed. setting forth the great recession. a man who has managed to move on to better days. plus i'll tell you what this cone and the federal reserve have in common.

[[voiceover]] every day, events sweep across our country. and with them, a storm of views. how can you fully understand the impact unless you've heard angles you hadn't considered? antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. including yours. >> just to be able to defend the title for once will be awesome, and i've done so well here the past few times i've played, getting to the semis or finals. it's been really, really exciting. i'm happy that i've been able to

consistently do well here. >> australian cricket captain michael clarke led his team to victory against england, scoring his first tonne. england were bowled out for 227 in pursuit of australia score of 315/7. >> and now take a look at this young man who has more than a few expectations to live up to. this is argen tendulkar son of sachi, in his father the highest run scorer.

>> prepare yourself, the federal reserve is having a two day meeting. it may affect your life. i'll tell you why.

ben bernanke and the fed has been buying tens of billions of dollars of bonds to prop up the economy and keep interest rates low. investors will find out they are pulling back just a bit. that's where this cone comes in. this is where we are, the fed is putting in $85 billion a month into the economy and they're probably or may announce that they're going to start to put less and less and less in. that's how the financial world is describing how the fed is going to do by gradually reducing or tapering the amount of buys. you're going to see these numbers all over the newspapers, just tell you what this refers to. as the fed tariffs, interest rates will likely go higher. 4.five, 7% is what i layered, it was just 3.5 a few months ago. bond buying is likely to go

higher, that's why next week's fed meeting, don't worry, i won't make you read it, i'll let you know about the decisions accrue to make about buying or selling the home. the fed's interests in propping up the economy came about because of the great recession, that followed the housing market and that collapse land because of the collapse of lehman brothers. that happened five years ago. the effects of that housing collapse are being felt by many americans. maybe by you. one of those people is martin spalding, who invested in rental property with his father and lost on it. martin, thanks for being with us, your story is this story of this housing collapse. you were living if a louse in florida, you made some money when you sold it. you invested in property in pontiac, michigan. tell me the rest of that story. >> yeah, well you know, it was a story that's pretty common i think, among the investment community.

we purchased some houses in pontiac, michigan and i'd say the 2005 time frame, fixed them up, got loans on them, and just watched the value slowly go down over time. unfortunately, we ended up having a house with a loan of approximately $180,000, and consume -- $180,000 on a house and ended up having to go into -- not in foreclosure but we short-sold by about $50,000 on that same house. quite a dramatic drop. michigan was hit very hard and pontiac probably worst than most -- worse than most places. i was lucky to be -- >> this was something your dad had been involved in, this wasn't new to you, this idea of investigation in homes? >> this was something my father did full-time, this was his job,

and throughout the -- early 2000s and pretty much he stopped doing it because of the collapse of the housing market. so i invested with him, but my -- you know i kept my full time job as an engineer. and so i was just more of a partner, rather than a full time investor. >> so that's the other side of the story, you're an engineer which has always consistently ranked one of the best things to be at all anywhere on this planet. so the good news is your job is in demand so you're earning a good wage, i assume? >> yes, i was -- i'm pretty lucky. the depression, the recession didn't really affect me as much. my -- actually we were probably worse off as the bubble was on the upswing in my area of work. and now things have actually improved since 2007. so i -- in that respect i've been luck yu and grateful for

that of course. >> like so many americans you're okay but you're pretty closely related to someone who lost their livelihood out of that whole thing, your dad. >> yes, my father, he had a dozen or more investment properties up in michigan and basically similar stories for all of them. i was only involved with two of those so those personally affected me. but i was pretty lucky in that regard because i did own my house in florida, and i bought in 2001, and sold in 2007, so i kind of had the reverse of the story there. i had the nice return on my -- my -- yeah. >> good to talk to you martin, thank you for shairk your story. it's five years later and we have to put a human face on these things and otherwise it is statistics and stories. and you're one of the stories of the recession. martin spalding joining us from atlanta.

all right how do you make a home loan with your sun or daughter without risking your relationship with them? that story straight ahead on real money.

why some critics say the school is setting the kids up for failure.

>> friday, september 13th, turned out to be a lucky end to a very strong week for the stock market. the dow jones industrial average jumped 3% for the week to end at 15,376, its biggest weekly gain in nine months. and yes, i know, i told you earlier this week that the dow only has 30 stocks that doesn't matter very much in the grand scheme of things but it's a sign that the investors are not too worried about the federal reserve cutting back on its stimulus plan. the s&p 500 a bigger and better measure rose 2% a little bit less, biggest weekly gain in two months. the home buyers get help from loved ones when purchasing their first homes, but major battles if the borrower has got trouble in paying back the home loan to the family member. good news, formal intrafamily loans.

taste stacy tisdale has the story. >> get it in writing, get it in writing, get it in writing. >> that's the most important bit of information, that's what she and husband jason did last year. their first child sylvan was on the way and the couple needed a place to liver. >> we were listen in a cabin out in the woods, that had -- it was a beautiful cabin but it had had wood floors and bunches of stairs things that children would be table with. >> ingrid and jason did not have enough for a down payment or the credit they needed to get a mortgage from a bank. that's when ingrid's mother kathleen suggested the couple buy a rental property that her late husband left her. she thought a fair price inform her daughter to pay. >> i wanted to do it in a way that would be helpful to them

but wouldn't hurt me in terms of not losing income from the house, and that kind of thing. >> kathleen, ingrid and jason entered into an intrafamily mortgage. enter rick kalor, says having a formal mortgage can keep harmony between a parent and a child. >> they know clearly what the deal is. there is no misunderstanding, there's no verbal agreement it's all documented and signed. >> from a financial standpoint who would you not recommend intrafamily lending to? >> i would not recommend intrafamily relationship where you have a poor relationship with the family or the borrower, i wouldn't recommend it if the borrower isn't responsible, i wouldn't recommend it if this is not going to be treated as a business loan. >> kathleen reported that the most important factor in her decision to make the loan was that

ingeary and jason was a good credit risk. >> i have seen them work as a team very, very well. i have seen them choose to live on a limited budget and manage it well. >> you need someone to mediate and structure the transaction, register the paperwork and collect the monthly mortgage payment. kathleen's got it ranged by a third party. >> i have a third party. if you have a mediate if things should go sour you have that mediator where it's not a screaming match, a grudge match. >> and it's something adult about doing the deal, it isn't a gift, it's a business transaction in a way that both parties benefit. >> the irs also benefits. you have to pay interest in loans over $10,000. the interest rate is 3.82% over

ten years. >> national family mortgage is a company that has structured over 100 million worth of family loans over the past ten years. >> the irs requires that the lender must report earning an interest rate on the loan and an index the irs determines. whether the lender intends to collect that interest from the borrower or not. >> if you ran into trouble, were going to have a month where you had trouble making your payment, would you take the penalties or would you say mom i need help? >> no, i would take the penalties. in this case it is very important for jason and i to feel like we're not taking advantage of the family relationship. >> a mutually respect that -- the mutual respect that helps keep the house the family and the dreams for the future all in perspective. stacy

tisdale, south dakota. >> even with intrafamily mortgages it pays to get along with the family. national family mortgage ceo tells us that families structure their loan that the monthly payment is 1%, and once again that was one cute baby. don't forget our question for today, do you expect to be financially better in a year from now? tweet us@aj money.com. friday the 13th, a day of bad luck and superstition. apparently many people refuse to fly, or act on a stock tip when it's friday the 13th. what are they scared of? bad things happening to them. after all, in october 1989 the stock market witnessed a mini crash. but guess what, this friday

the 13th closed with the biggest gain of the year so far. you know what's scary, not jason from the friday the 13th horror movie franchise. i was scared the first time but after that, not so much. what's scarier than this is when our elected officials mess with our economic recovery with partisan grandstanding just when things are getting better in this economy. they are already playing roughshod with our recovery with these scorched earth debates about fiscal cliff and sequester. stupid things with student names. then again, that makes me sound superstitious. that's our show today. thank you for joining us. next it's the 1% i'm shining a light on. the guy who went from the 99% to the 1%.

>> signs of progress over syria's chemical weapons. the white house says it maybach a u.n. resolution without the threat of force. ♪ ♪ >> talks between the u.s. and russia are entering a third day gentleman neave actual the diplomats say it's a pivotal moment. hello, i am elizabeth the other top stories. a ceasefire between separatists rebels and the philippines military collapses only hours after it came forth. riot police move in to end a three-week sit-in protest by teachers in mexico city. d