Sequestration's impact on average Americans
Will you notice automatic spending cuts?
- Duration 4:56
- Date Mar 4, 2013
Will you notice automatic spending cuts?
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-- bit about Washington.
Not everybody is buying it and they're not sweating the arrival of the automatic spending cuts while politicians.
In Washington it's certainly been sounding the alarm over economic -- gloom.
Wall Street is really barely notice CNET.
Because you may have noticed the stock market close yesterday near its record high so what's the deal what does this really -- average American.
Trivia -- let's stop Scott gamble whose founder of helped save my dollars dot com good to see it -- the -- -- look -- hyperbole hysteria exaggeration is endemic in Washington DC.
And if anybody understands that it's Wall Street you can smell manure a mile away and it's -- -- right out of Washington DC and they're not buying.
They're not buying it and also Washington lost its power to move the markets I mean.
You -- banks are doing a lot better than they were four years ago we think back to September 2008.
With the TARP program that was the Troubled Asset Relief Program the 700 billion dollar bow out.
You know that was when Wall Street was on its knees the future of it live in the hands of the government and we're just not there anymore talk -- over the banks are doing better.
And so -- we only saw four banks fell in 2013 were small banks and if you look at the area of the government.
That Wall Street really cares about it to Federal Reserve.
I don't know Ben Bernanke the Fed Chairman isn't gonna do anything drastic in the near future it's gonna keep buying bonds and keep interest rates low so what's driving up Wall Street to near record high it is.
Well look we're seeing.
Lot of great economic data out there mean we had a terrible GDP report in the fourth quarter of 2012 ensure that the economy actually shrunk by -- for percent.
That number with -- last week.
To show the opposite about -- rolled out -- -- -- -- -- still not where we need to end it's not a Reagan recovery of a robust five and 6% in an unemployment dropping down to 6%.
But it's a start we also saw consumer sentiment increased about a percentage point.
In February we also seeing Americans take a little bit more credit card debt which might seem like a negative sign but at least it shows that there -- a little less risk averse.
And they're safe enough to take constant that in this kind of talked me not auto sales in real -- -- auto sales are doing great we saw.
American automakers are about to sell about fifteen and a half million cars to see that's about a million more than they did last year.
And we're seeing that fueled by the housing market which is heating up in many areas across the country we saw.
Housing jump about 30% over the past year.
And we're also seeing credit for auto loans loosen up and get -- interest rate on the auto -- about three to 5% very affordable.
And it overseeing a lot of the other economic.
Outputs in this country really do better and that's what's causing these these auto companies it is much better what do you think -- means to the -- Yeah you know look at your garment worker.
You're going to be affected whether to furlough.
Or a layoff but for the private sector I don't see these suppressed or causing much trauma -- -- he gets a drop in the bucket compared to what we spend.
Every year in this country I think no American should be more concerned about the fact that personal income dropped.
Three point 6% from December to January at a big deal also we -- we had the payroll tax holiday expire so Americans are giving up another 2%.
Of their paycheck but I think if there's anything that Americans have learned over the past four years it's how to make -- with less something the government hasn't mastered looked -- -- spending has jumped 184%.
In the first two years of office.
Since President Obama took the oath of office.
And there doesn't seem to be any sign that it's really any meaningful way -- going in the opposite direction shouldn't that be a drag.
On the economy and in turn on Wall Street.
Well it is but when you look at.
The amount of people that -- our debt we're still better off than the rest of the world and what's happening is it sort of is vicious cycle where people continue to buy our debt.
And that exacerbates the problems with this interesting dynamic but we're seeing a lot of Americans turn their heads away from the -- -- watching you know the president just got a 650 billion dollar tax increase and yet again today he's -- -- War doesn't.
That affect Wall Street.
Well it does but you know you gotta figure that.
-- -- Wall Street thinks he'll never get well the Republicans want.
Don't want any tax increase in the Democrats are saying look we need a balanced approach I think you know.
Folks on wall -- saying look.
The Democrats are gonna do what they're gonna do we just need to focus on continuing the growth and and worry about taxes when that -- John Boehner said the other day.
New revenue forget about it's over.
Don't even talk about it's not gonna happen he won't allow it.
Wall Street jumped up immediately I think they like that at.
Sort of tongue from this guy John -- right there.
And they did and we -- we saw all the indices up on Friday just about it that was about a hundred points side it's on October 2007 -- OK some winning for the nosedive on Scott yeah I mean it always -- there and it's got candidacy thank you could see you haven't.