tv Bulls and Bears FOX Business July 14, 2013 1:00am-1:31am EDT
see you nex week. [applause] ♪ thanks for joining us. >>talk about a jump at the pump. gas prices back on the rise as oil keeps on surging. this coming with continuing unrest in egypt and keystone pipeline protests here. is allhis creating a pain in the gas for american drivers and the economy? hi, everyone. i'm brenda buttner. this is bulls and bears. let's get to it, the bulls and bears this week, gary smith john layfield, tracy burns along with steve murphy. welcome. okay, john, just how bad is this going to get at the pump? it's certainlyoing to get a lot worse before it gets better. when there were only four people on the earth according to genesis in the middle east, one
killed another one. the middle east has bee zscrewed up ever since. here at home we're doing nothing toelp. the left hates fossil fuels. the right thinks all we need to drill. we have no policy. we are screwing up our own system and costing our systems jobs because we don't have a national energy policy. stev ste >> see teve, do you agree? >> there's pain at the pump like every summer. most of this panel likes the guiden hand. that's what causes the prices to go up in the summer. beach chair prices go up in the summmmer. of course we need energy independence but this is just simple supply and demand. >> gary v, steve makes a point. july is a peak demand month, but last week we saw overnight gas prices go up 3 cents.
that's unprecedented. do you expect them to keep going higher? >> well, i'm going to be going to the church of the guiding hand on sunday to celebrate. yeah, i do. look, i think steve has it partly right. we normally do see more demand and of course if you believe in supply and demand that does drive prices higher. but what is going on in egypt, the unrest there, particularly not somuch that egypt being a huge supplier of oil, although it is big one of the biggest no non-opec suppliers but it has the suez canal. two, as john mentioned, our lack of energy policy -- not so much a lack of energy policy, it's the lack we want to do the things that areo obvious like the pipeline, like drillg anwar, thing that' have proven to have minimal if no environmental impact that could increase our oil supply, cheapest form of energy. yet we want to tie our own
hands. that's what's causing these prices to jump up. because the world and he in the u.s., we don't see any move toward getting those lower prices by doing the smart things. >> tracy, oil and gas prices going up. do you think that's going to hurt the economy and are they going to continue surging? >> yeah. brendayou and i both know wages aren'tgoing up so gas prices even if they inch up a little bit, if we don't see a wage ncrease, that's taking a bigger chunk of change out of my pocket. i disagree it's typical supply and demand. global demand is going to continue way more than supply. if we're not going to do the right thing in the united states. the oil is there. why can't we go get it? it's the uncertainty in this market. we follow it every day. one little blip can send gases pricesing because of the uncertainty, to john's point, there's no plan. nobody knows the future. >> jonas, you don't quite agree on the keystone pipeline issue, doou? >> well, i like pipelines over
like using trains to move oil like we saw the problems in canada just recently. that doesn't deal with the issue that we're already doing basically all we can to keep our gas pump prices as low as we can. so they might go higher with the global disruption like in egypt, but the prove of this is there is no country with cheaper gas prices that isn't an opec nation that isn't america and, moreover, compared to our reserves which are like a tenth of saudi arabia's, we're about to produce more than saudi arabia. there's no country that produces more oil compared to their reserves than america. awe the other countries produce less oil and they have more to produce. so we're doing a good job, people. >> john, take him on. >> i love jonas. he's my friend, but he's completely wrong. look, the monterrey ale might be a big porti of saudi arabia in california that takes away the california deficit. we're not sticking one drill into that. the utica shale in new york
would erase the new york deficit. we're not sticking one drill bit in that either. we have oil all over this country. we are not tracki fcking anywhe because we don't have an epa who will stand up and say, we need to do this or this to make it safe. it's all the above angs. we don't have that because we have no plan. there's been four environmental studies on the keystone pipeline. all are clean. we aren't doing it for wha reason reason. who knows? >> steve, maybe you know. >> i'm with anwar and keystone pipeline. but with fracking causing earthquakes increighing threefold you'd be careful toing that in cal kpal. >> tracy, go ahead. >> brenda, i think one piece we're missing are state taxes. this piece of the gasoline price is not going away. that will continue to go up. couple that with gasoline prices going up higher than our wages.
that's the bottom line. >> gary v, it will have an impact on the economy, don't you think? >> absolutely. you know, i want to get back to the point that jonas was making. you know, while we're doing relatively better than other countries, look, i don't want to compare ourselves to our countries because we can do a lot better rig here. we've shown that with a combination of coal, natural gas, oil, shale, oil that we have. we would not need to import one more barrel of oil for the next 500 yeyears. why we're not going down that path when we can lower prices even more, be energy independent and by the way create ton more jobs is baffling to me. >> 500 years? >> ye we have 500 years worth of oil. >> i hope you have your scuba gear ready. you're going to be swimming mr water. >> gary v, i want to ask you. the oil market is going up but so is the stock market. that doesn't often happen. do you think that's because of the head of the fedaying that
easy money is not going to ease up anytime soon? >> well, brenda, i misspoke. i'm not going sunday to the church of the invisible handment i'm going to the church of ben bernanke. he's my idol. i think e whole thing is silly. i think whenever bernanke speaks about, there's not going to be any taper, we're going to continue to flood the money, see what happens to the market. this is a fed market. we're ignoring news that we heard on friday about u.p.s. about a slowing economy, same news we heard from fedex. instead, the market keeps going up like it has rocket propel ant behind it. i'm not fighting it. believe me, i'm loving it. but i think it's on fumes. >> what do you think, john? >> i think gary is right. look, the u.s. is the only place that is a safe harbor for your money. the u.s. markets are probably under valued because of what gary v is say, the fed giving crack cocaine to the markets right now. if interest rates go up, just a hair, it's two x in emerging
markets. even in rates if they go up, still the best place for your money. >> you know, say what you want about it, that's why it's the most hated rally in history becausno one likes the way it's going up. but it is going up a people just need to take advantage of it because even when they start to taper, it's going to be so slow and you're not goingo feel it immediately. andet at least your 401(k) ride this one out. jonas, about 30 seconds. where is the economy headed? >> there's no position -- because our pump prices are lower than japan and europe. we produce so much oil. we actually make a lot of money from rising oil prices. we're sitting pretty with $100 oil and could have the best stock market in the world for the next year. >> that's got to be the last word. thanks, guys. the irs is good at collecting your money. time to take some of it back, republans pushing to slash 300 bucks from the tax man's budget after all the targeting and waste. and democrats, well, they're
the internatiol brotherhood of electrical workers just joining the backlash launching an ad against it. forget the hypocrisy. gary b., you say unions actually have it right this time? >> well, you know, brenda, you know i'm bias and alws a big fan of unions. it goes without saying i'd be speaking up for them. but in this se i've always been kind of opposed to unions because they'rkind of self-centered and always focused on themselves. but that is the american way. and in this case they do have it right for one reason. they just want to keep the plans they have, however ludicrous and idiotic and gold-plated they are. that's their cice. but with obama care you can't do that. you don't have a choice. he clearly said you'll be able to keep your health plans. the unions say, wait a second, he can't keep our health plans. in this case, they have it right. >> jonas, do youink so,. >> trying to pay these health care bills, why companies are
being run into a lot of trouble because -- so these plans are cadillac plans. they had to get caught. i was looking at the white paper by the union about what their griefs are, and they don't like that lower employees are going to have to basically go into crumbier health care. we need a race to the botm from the high end of health care. this is one of the good effects. i'm ooanti-union and pro-obama. >> unions used to support obama care. now many of them don't, steve. what does that tell you about the health care law? >> it doesn't tell me anything about the health care law because there's one good thing about the health care law, and that is that it provides everybody with access to affordable health insurance. but no supporters of it -- >> we're never going back to something else. but let me say this, it does say our health care system is totally wacky and the health care law will bake that in. the new law keeps most of that. we spend more of our gdp than other countries. we nee a single payor system.
th's what the unions used to be for. now they need to be for. >> even the unions, soon enough the girl xoults will come out and say this is a joke and a half half. >> i said get rid of it and have a single payor system. that's what it shows us. >> obama care is wrong on so many levels, and even the unions now get that. the state exchanges are not going to work. they pushed off the employer mandate. is tre still an individual mandate? nobody knows. even pelosi herself says we have to read the darn thing. nobody knows and it's confusing everyone, even his most loyal followers. john, i know you're not one of the most loyal followers, but what do you think about ts? >> free pizza, right? this was sold as this is going to be free insurance, everybody is ing to happy, we're all going to sit around and sing couple dkumbay kumbaya. you'll be able to keep your existing insurance. surprise, surprise, those are
wrong. this was passed in a completely partisan mannejust to get it done and you're starting to see the ramifications of it. it's created so ill will. no health care will be done. 24 of 50 states have opted out of the medicaid because they simply cannot afford it. this thing is an absolute disaster. >> gary b., time to flatline it for good? >> exactly. jonas and steve made kind of the same point, this whole, well, we need this, it should be this. who are they to decide? not those two. but who is government to decide what we need? >> yeah, because -- >> like the almighty hand has decided, you should eat more vegetables, you should exercise more. was there a human cry for this obama care? no. in fact, it's widely hated. that's why not only should the employer mandate go, the rest of it should go and we should try to edge back toward a free market system. why is there a walmart of health care out there?
>> jonas? >> they have these giant plalan because the governmentarved out all these breaks. first of all, the government is it behind a lot of the health care plans with the unions but there's a tax break where they can write off a tax-free perk. >> i don't think there should be that. >> if we went to the free market, no tax break, no cadillac health care plans. they'd be complaining because one way or another the $30,000 health care plan will go away in the future. this is one y to do it, messy, complicated. >> how is it going to go away when at the end the day you have all the entitlement programs in place. nobody is talking about. everybody deserves to be taken care of in this country but this is not the way to do it. it is going to put us into bankruptcy. we spent so much money implement being the darn thing, now we'll spend so much trying to abolish it. when really if somebody would have put some thought in this, we'd be okay. why eating more greens has
i actually like vegetables because they're prepared right. >> the president telling a group of kids he loves his veggies but his push to get kids to like them, too, is back firing. one indiana school district losing $300,000 because of the government's lunch program. kids just aren't buying the stuff,s and they would rather go
hungry. this coming after a new york school district is scrapping those healthy meals after it lost 100 grand. tracy, more proof this nanny state just isn't working. >> oh, brenda, you're a parent. you know you can't force a kid to eat anything if he doesn't want to do it without bribing him with cash on the side. look, the portions are so small, the defensive line on the high school football team is going hungry and the kids that got the kids threw it out. it became a total waste of money and time. it isn't the way to get our kids to eat better. maybe we should tell the people on food stamps to force them to buy healthier food for kids. school lunches isn't the way to do it. >> steve, do we need a nanny state when it comes to kids. >> we certainly do. we need it or we'll go bankrupt in the not too dista future. a third of all medicare costs are projected to be from
obesity, largely preventable and caused by childhood obesisity. excuse me, a third of the cost will be from diabetes, which is largely preventable, it's from obesity. we have the second highest level of childhood obesity in the world. a good nanny is hard to find. a school is a good way to start. >> gary b., you're a dad. you know all about feeding kids. what do you think about this plan? >> well, let's stipulate that steve's facts on obesity are right. what galls me is that mrs. obama thinks that it's her problem to solve. it is not her problem to solve. it is the parents' problem to solve. it's parents that let their kids be obese. why is the federal government mucking around in what local school districts do? again, are they the all-knowing, all-seeing being that can determine what should be on the kids' plates? when i grew up, darn it, i liked
cheeseburgers and tator tots. it was good enough for me and it should be good enough today. >> and you walked to school both ways in the school uphill. john, what do you think? >> steve is right about one thing. diabetes is a problem. we have the fattest, laziest kids in the world right here in america. and the problem that we have is not going to be solved by trying to feed them vegetables. it just simply isn't going to work. look, educate them on diabetes. educate them on obesity. ban sodas and candy from the school. but you can't try to make them eat vegetables. i hate vegetables. i'm a fairly healthy person. get away. >> i know jonas loves vegetables because he's the skinny guy among us. go ahead. >> fortunately because of the food lobby we call pizza a vegetable at the school. >> it's not? >> technically it's not. >> i've seen you hit the cookie strike. inow you don't eat vegetables. >> i agree with steve's point about obesity. i think most doctors would be for this food plan, even though the -- by the way, the kids dot like it. the kids don't like math.
we won't take away math because they don't like it. it's public school. they're going on a free ride. they should have to eat what they don't want. and the bottom line is, it's healthier and we're paying for it. it's not the nanny state like when the new york mayor says, you can't serve soda this big. this is tax-funded food. we get to call the shots with the food. >> but so is yoga and being a vegan. but i don't want our high schools being yoga vegans. >> that's our last word. and we thank steve for joining us. up next, a boeing 787 catches fire. why someone here says it won't be a nightmare for the maker of the dreamliner. and walmart standing up ñá@@"d @
predictions! gary b. >> brenda, despite the latest 787 mishap, boeing is going to be absolutely fine. the stock is up 25%. >> john, bul or bear on that? >> wait a while. be. >> they have a 5.5% yield, 20% up in a year. >> jonas? >> bear. >> jonas? >> okay, they raised the minimum wage in d.c. there will be beneficiaries, but walmart knd handle it. they had to close plans for three stores. >> jn, bull or bear? >> bear. >> tracy, twinkies will be
available nationwide on monday. mrs. obama will be thrilled! guess what my kids are havetion for lunch next week. >> absolutely. there's nobody on a bear on twinkies. >> neil, take it away! fox on top of an irs budget that is now over the top as the fight for jond the top because if w can't cut a few billion from an caught targeting conservative and caught spending money on this, what can we cut? i'm neil cavuto. let's start chopping. republicans want to chop a budget for irs. and democrats won't ha anything to do with it. >> what do we want to do, go around and give people a tin cup and give money to pay for police, firefighters, government, capitol building? how do they expect to