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Is the free market telling Washington to keep staying out of their way and they'll get the job done?
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Job creation so -- stocks roaring.
As the government does.
Gridlock putting -- -- in a deep marine is so is the free market telling Washington keeps staying out of our way and and we'll get the job done.
Hi everyone I'm Brenda but this -- Bulls and Bears let's get dragged to it.
Movement here this week -- -- Tobin Smith Jonas Max Ferris along with Bob froehlich and Susan -- welcome everybody.
So Bob the government finally doing nothing is helping free markets -- something.
I.
I certainly think it -- -- think about -- -- no new stimulus we certainly haven't had new tax on the rich so I think conceptually something's happening here I think we're finally figuring out we need to have slowing stimulus not growing stimulus we need to cut taxes not.
All the sudden won a high taxes and most importantly we have to start challenging all these regulations not.
Coming up -- new regulations but I think the most important thing Brenda is.
We need less government employees not more government employees we do that we'll have more days like today -- stocks take off and employment takes off.
Well Susan isn't what the government is not doing or what it did.
Well that's exactly right Brenda you look at you know this stimulus that we put in place in 2009 if you look at the payroll tax cut -- can say oh let's -- is not working they failed.
In fact they -- -- we're seeing about it but now these programs don't take place overnight you know you don't see the impact right away and you're really seeing tremendous growth coming out of what we're really actually good sound reasons -- -- -- policies and -- -- -- idea that.
The governor is not helping support the economy right now I mean if fed has become so much liquidity today into -- market you know it's not an IV drip so -- -- -- very supported market right.
Now we do have a low interest rates we do have stocks run in -- -- Gary B is that because the governments do and some are because it's not.
Well I think it made because it's not doing something and died you know -- -- is right system makes some valid.
Points but she's alternately unfortunately wrong.
Saying they were holograms and for that that was -- listed as I recall.
Talk quite tell them.
I -- our governor is bigger than make a why is to bring down unemployment and if that is the way we're grating the stimulus the you have to give it an app.
On the flip side is studies have shown that government and then sources in his right helps to a certain extent until it gets to about 20%.
A GD pay anything over that.
Government acts as a drag on the economy drag on.
Employment that's what we're start missing now -- -- -- government's share of GDP is well over 20% about 2425%.
And it's going to increase we all know that -- for even just for interest payments.
Alone so.
This over stimulus that you're seeing.
The effects are going to be felt negatively for years.
Well -- that's kind of in.
Is is this really added an end and an impact of stimulus I mean some of that money that was spent to -- haven't impacted net.
Yet the entire housing market is being supported by housing stimulus -- -- forget the government did a lot in tax cuts even recently with the payroll tax cuts.
But you could argue is to blame the government must not wish to much for gridlock if they don't do anything -- to start going up very quickly the first apparel and all the bush tax to go away so.
You -- wanna compromise of like a little bit of doing stuff but not too much because of what we have seen this week with the -- good -- -- with the stock market the last few weeks.
Is it would probably don't need a whole lot more government to Gary's point you want the government to pick up the slack when the -- -- good week but the content is coming back right now.
And the government can slowly get out of the way now there were out of -- recession.
And I think it's worth noting that we had a lot of stuff in the bad parts -- -- all brilliant stuff but at this point we don't need a whole another round of anything necessarily.
Business I'll tell -- business cycle now gosh it's called it old fashioned person here but you know what.
-- the business cycle is demand -- group becomes lower that's where recession comes from and people stop buying stuff and that creates ultimately pent up demand.
And we are starting to get to that self reinforcing.
Point that's exactly -- to derbies point that you want to be stepping out because in essence.
The idea of government providing some stimulus early -- in a recession is so they can step out and it will be a shorter want.
I still -- and and I'm confused by how the government has decided that they -- to manage the business cycle and that receptions and all the good things yes the good things that come from recession.
Are not allowed to do it and what we needed more it was time and and now we're starting to see the -- of -- time there's a cycle works.
But don't forget you know -- And Gary you know we started in 2010.
That we -- starting to see member those famous Green -- every -- -- here comes a recovery we're gonna have summer of recovery.
And it -- instead agreed -- -- and -- -- -- clean slate is a stock market now right exactly.
Right but I'm saying that we started -- -- is that what we door on the Green -- -- a couple years ago and they thought OK here comes here comes our primary and it petered out just as quickly so I think that.
Before we get to abolish you remember that -- GDP forecasts for this year are you know.
Roughly two and a half percent on a good day so we're not sort of you know busting the doors down Jeff and I don't think it's that time to take our foot off the -- -- as well.
Was may have put -- the -- that the automobile sales superb example of the business cycle.
I've bite but did you -- cars get all people need to replace -- -- -- it felt that they couldn't wait they bought that we saw this cycle come up you're gonna see this a lot of industries here as a bizarre to expand.
But I you know I'm not afraid you -- -- off the cliff yet.
Well -- well today.
Just a thought they're going are gonna say the unfortunate part is we won't be taken the -- off against just because we now have been bad at such a high baseline.
Social Security keeps rising Medicare.
Interest payments even the defense budget much they talk -- bringing -- down is going up so unfortunately.
We could jump.
A car right now -- the gas pedal is it okay this -- got on the bottle.
That are done I.
Bob what do you say it's hasn't had no gas pedal you know that the stimulus has some -- -- Well why don't believe it has I mean I think what is this Toby is exactly right -- -- Corporate its corporate spending is coming back because earnings of coming back the pent up demand with people there are now spending on -- the whole thing of saying that interest rates at zero is is to help our economy that that that's one sided interest rates are zero because we have the largest budget deficit since the great depression and you gotta keep rates low because we can't afford rates of Ohio it has nothing to do with stimulating our economy.
Isn't happy to do a lot of ugly in mortgage securities -- people -- refinancing would have 3% and that's the government doing that's you can did -- your brought their rate low in the fortune five part that's really the governor you can just had the free market doing that.
This order say before being in the bottom -- if the government.
As the hot fired more people state federal local than in any recession I can remember the actual number of people let go from these jobs leave you for private sector job creation.
And reducing government mostly on the state -- ghetto you see a lot of that allows you to complain.
Is a very important that point Gary -- government where we're not just talking at the federal government on the -- and the local level we have seen.
Huge layoffs because they have to meet a budget.
Well -- we've seen huge layoffs but remember -- for the longest time.
For impact -- few years -- the recession the lowest unemployment rate could be found in the government sector so now even though it sounds -- -- in all my gosh all these government employees are being laid off.
The -- coming out did the same pathetic employment levels that the rest of the economy has been saying.
I guess the point is the trend here.
Isn't -- -- -- -- But look at where we're gonna have use your Peterson is we have other it issues and it's it'll be outside influences but.
The good news I think we've -- time off for a -- is is it didn't leave the -- -- -- it goes seven was based 40% on a barrage on housing and it should have been built mortgages etc.
What we're rebuilding our economy now -- it is real stuff.
And and not you know mirage type like FaceBook -- up at like crazy.
But I don't know -- replied -- -- know.
These are manufacturing coming back -- your right exactly right at radar we're seeing some good real progress in certain a lot of -- -- is not against she makes excellent.
Look.
-- it right there.
In some nice tell -- this is -- -- at that account that -- all right.
