Stocks clamor for more stimulus
Will Federal Reserve respond?
- Duration 8:47
- Date Jun 9, 2012
Will Federal Reserve respond?
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More stimulus not some of these guys but from that guy.
This week was all of Taliban stock's shooting higher -- week on hopes that Federal Reserve chief Ben Bernanke we just saw would offer -- stimulus.
When he offered no hints stocks fell back.
So the so called Smart money says the economy needs more stimulus but summit Forbes say that'll only make the economy worse so -- right.
Hi everybody I'm David Asman here -- that Forbes flips us.
-- native Elizabeth MacDonald recover Morgan Brandon and mark strategy so -- stated that we need more state -- David stimulus is what killed the recovery.
Investment in plant and equipment has strong for two consecutive quarters in this country.
Go back to 2010.
Vice President Biden said that and a month now we're gonna start creating between 750000.
Jobs per month.
We've created on average since then a 188000.
Jobs president Obama said back then that.
The economy was gonna grow at three point 8% in 2011.
Guess what he was off by more than 50% at one point 5% -- -- -- it is true that Federal Reserve over the past four years even before President Obama came -- -- Paris printed about 2.5.
Trillion dollars doesn't seem to have helped much.
No but part of I think it is as we just haven't stimulated the economy enough I mean look at the original bailouts that occurred.
And -- we should have put you know probably.
Double or triple that amount of money into the economy and what are largely what we've done is avert a Great Depression here David if -- put more money into the economy I think the economy would be growing a lot -- Wow what GMAC doubling that would be five trillion dollars if -- if the Fed it burn it up Thabet.
I I don't know it sounds like what Mike is say if if you try -- it does work maybe you should try something different analysts and if this were the Soviet Union would still exist and Greece -- superpower.
So here's the issue I mean he's president was funny that's actually saying.
Look we went the other well -- we did us -- we -- Smart spending we this mark cutting.
I've heard government look what happened in our economy the -- -- off we're up by 4% and unemployment.
Is down even Ben Bernanke is saying look at I can't stimulate any more by the way it's hurting savers in this country.
Facing microscopic deposit.
Rates Rick -- do we need more stimulus or not.
You know I gave -- I was watching the tape of last week's show because I for one can't get enough of Elizabeth MacDonald.
What did you do.
And and all of you were talking about how the most important thing is that we have jobs and we have jobs now.
So don't you know that this week the University of Chicago business school.
Releases -- survey of economist and what do those economists say.
Of them agreed.
That the stimulus not only created an enormous number of jobs it's saved us a little -- -- much worse economy.
That's better than four out of five -- of course the stimulus made a difference and mark is right we needed more.
But Victoria the first dollars and an economist who got us into this mess I've made it puts us some of those I -- yeah don't have the answers going.
I think I think we should be asking dentists to wreck I actually looked at something earlier this week -- that -- that economists can't three because.
The funky thing about stimulus -- you apply multiplier.
You do all these odd sort of -- to keep things to figure out -- it worked.
And the bottom line is an American people are probably smarter and they now.
If you do stimulus if you pump money into the system we'd pay for it later hardworking Americans pay for it later.
Either in the form of higher taxes or you're just punishing savers the money they have in the bank isn't worth what it used me and then -- Answer Morgan doesn't cheap money which is essentially what happens when Ben Bernanke prints -- it makes the money in our -- worth -- doesn't cheap money also make it easier for politicians.
To spend on credit and that's no good.
But I think as in the case of what -- shut could.
I and the -- the matter is Bernanke did come out this week and did -- lead to the fact that with some of the cuts we have coming later this year we could run the risk of another recession.
So I don't -- -- could be kicking the can down the road.
By continuing to spend -- adding more stimulus are arguing about stimulus but it shouldn't matter if I do think we need it.
And going back to some of those reports I think a lot of reports in the last couple months that show that stimulus that was actually indeed effective.
That up through 2010 it didn't maintain our add 3.3 million jobs and so and that -- Candiotti I don't -- that I'm here.
That's our OK I'm back -- -- I sort of big story troubled out by the White House is that they are creating jobs no we have net job losses since the president took office yes is because of -- really bad crisis I can bet that it's also because of bad economic policies.
Coming out of Washington DC and we're throwing money at Mal investment meaning bad companies for example GM has been still destroying shareholder capital for decades companies like Citigroup which has gotten three bailout since the early let Morgan get her word and Goteborg.
-- every wanna say about that look at the GDP rate we had a lackluster GDP rate for the last two financial quarters.
And a big reason for that was because we've seen government spending cut down severely and that's the opposite of a stimulant and that -- ordinarily music.
I'm proud of languages that Wall Street -- -- -- these stimulus whether it's whether -- says stimulus from the federal government or stimulus from the -- planning your body -- absolutely because where they gonna do with the money they're not gonna buy bonds that are yielding one and a half percent what are they gonna do it in my gonna -- the money into stocks that's -- every time the Fed Chairman talks about the stimulus stock prices go up but that doesn't mean a real economy's getting better.
By the president's own calculation and what he -- said David -- stimulus has -- remember back after he's elected he said.
Pushed through my stimulus and we'll get the unemployment rate below 8% it hasn't happened -- -- and gave -- president and the Federal Reserve both say that it's a good thing -- get these interest.
Print money -- that interest rates are very low.
But the Gallup poll just -- a survey out showing that a lot of people don't like low interest rates particularly folks thinking of retiring.
13 of all those folks think he retirees say they're probably gonna have to wait longer because they're not making money -- their savings because interest rates are too low so.
Low interest rates don't help everybody -- I I don't disagree at all David it's very difficult for people on retirement.
To exist when interest rates are -- but what.
Yeah it's amazing for the first time since I can recall 50% -- -- has a right Morgan mark and I are actually all together on this.
You -- have to face this realistically it's not an either or situation in the real world.
Of course you need stimulus in difficult times that doesn't mean that we can't keep our Ryan Howard gonna solve our deficit problem that.
We have to.
But we'll -- visiting my.
We have this -- ansari that is competitively absurd mindless spending propping up zombie companies it is not based sector hang onto the senate -- the economy that need restructuring.
We're throwing him on the run down a rat holes in papering over problems we're not solving the underlying problems in the economy and that's -- threatening -- -- -- -- got.
Well let's go to handwriting is on the hill I hear us government land now.
Not all enzymes make your final point Marco and I.
My final point is is look at Europe look what's happened there they have cut back fiscal restraint 11% unemployment we have 8% unemployment stimulus.
We spend more we bring unemployment down further of course that we raise taxes we're going to go into the global recession before Victoria one of the problems with -- by the way is that they were raising tag that's exactly what is Sarkozy the last exactly as president that he -- tax rates.
As in order to balance the books and dancing are already good about doing here all Victoria Garnett -- It blows my mind that you're suggesting Europe as a model for the U let's hear it makes absolutely no sense I'm saying is a model and what went land -- our money.
Curious how it's immoral war went last job creation people won't change their -- They won't Arnold yeah I just sits there -- ten giant -- anybody has -- -- Europe is a model of what went wrong right -- -- a variety you don't stimulate your right if you don't stimulate you cut back and here's how you stimulate stack up but that's I think we're all in agreement that we should have growth the question Michael -- and -- how you stimulate whether you stimulate.
With more government involvement or -- back to the Clinton Era when they came out of the recession from the bush -- years and from the Reagan era when they came out of the Carter recession they cut spending relative to the size of the economy and the economy -- because the private sector had more -- -- -- that's got to -- the last word and -- got the -- -- -- by -- goes into.