tv Bulls and Bears FOX News July 28, 2012 10:00am-10:30am EDT
sequestration, but you have to do this and the tax cuts in the context of raising the debt ceiling, it's going to be a lame duck from hell come, after the presidential election and that's just the the reality. >> toby? >> i don't know how to respond to lame duck from hell. it's pretty simple here, 10% of the consumers, you know, consumer 70% of our economy, are the ones who are responsible for 40% of the discretionary spending, if you take a dollar away from that group, the top 10% of the earningsers, $4 out of the economy and that math is not considered here, we sort of think like this all happens in a laboratory, but the fact of the matter is, you take $4 out, and your we're on the race for recession right now. and everybody that i follow and we use say we're on this track, do you this, we're on recession. >> and jonas, the economy is barely crawling, you really can't say it's growing right now. but do you think that renewing
the tax cuts for everyone at the cost of raising the deficit is the right thing to do? >> first of all, we have end the economy crawling along and don't know how much at this point. we can't afford to extend these to any group. the mish-mash, and even if they go away and this cliff happens next year and the forced spending cuts don't end up either, we'll still be running a deficit even with the high tax rates, which means we're still in the stimulus program. the worst case is the stimulus program and no plan to actually close the deficit, you know, substantially with either tax increases and spending cuts anyway, so, i don't think it's as bad as it is and i don't think any group deserves a major break in this clip to worry about, we're all in it together at this point. we could use a small tax break. >> and basically, isn't it considered, wouldn't it be considered a tax like by the very people who would not be
getting it? and wouldn't, and they're the ones creating the jobs? >> i agree, and look it, we're approaching the fiscal cliff and i think the administration misses the point here, we should be talking about tax reform, not raising tax rates. and you know, read the moment of truth, the simpson bowles plan, we get it. we need to lower, flatten the tax, broaden the base and a step further and introduce corporate taxes to make us more competitive around the world. >> well, all of those things may be, you know, on your wish list, right now, what we're facing, gary b, is that that fiscal cliff everyone is talking about, that at the end of this year, we do not-- if we do not-- the tax cuts expire and we're going to have huge spending cuts as well. >> well, exactly, brenda. aim note worried about the spending cuts, i mean, you know, all the better, jonas talked about the stimulus program, especially saying the government is paying out more than we're taking in, yeah,
let's fix na part, too, with a bigger cut, but getting back to that tax, brenda, it's not just, don't forget the bush tax cuts going away, capital gains are going to go up. we have the obamacare health taxes coming in, and you know, the left argues, let's go back to the clinton tax rates, yes, that's fine, but we're going way past that with these additional taxes for crying out loud. and that's, that's contributed not only to the uncertainty, it's created to people not spending now, because they know they're going to have to pay out a lot more to the the government next year. >> jonas, how does that uncertainty figure into your thinking on this? >> well, i think there is certainty, they're fot going to do anything and we're going to have a certain tax regime, that we had relatively certain, what's uncertainly, extending it six months a year, for this group, that group. that's not a tax plan every year it gets pushed along, the amt pushed along, they've got to get a new regime going these cuts we can't afford,
let's be honest, we're not going to do the spending cuts enough to pay for it, we've got to let something happen. i think we'll be in a sounder position, which is what we're going to let this run, if it happens. >> is the time now when the economy is really showing signs of getting worse? >> no, and the reason is, i mean, you know, jonases is right in that the perfect world, we'll have all the stuff happen, but we've got to take the biggest things right now and make sure we don't screw them up. number one you issue, plus the payroll tax ends, tax extension, we would take it into another recession and then all of our hands are tied. >> chris? >> here is the problem, having worked up there, you know, i-- yeah, no joke. >> behind you? >> and they are not going to come to an agreement, i'm convinced. >> no, really? >> and best case scenario-- >> news. >> and in an election year, don't expect them to-- >> no, i'm not talking--
i'm talking post election, none of this is going to be decided before the election, i'm talking before the lame duck, it will be pushed off into the next session of congress and then the problem here, what we have right now, is we have political leaders who do not want to face the reality. the reality is we've got to have additional revenues, and do that by raising taxes or tax reform and the notion that somehow the fiscal problems of this country bases, and the scope of the debt and the deficits are going to keep on growing, we're going to ignore them? i mean, it's a fantasy that this is not going to come back and haunt us some day, it's going to be a disaster, we're not happy in two years, three years or four, but it will happen. >> gary b? >> yes, and i agree, these deficits, but no one, a, keeps-- they just assume that government spends, oh, okay, that we have to keep growing, yes, let's fix the deficit, but let's fix it between the government. and the tax-- >> look at this, you have the republicans agreed to it and
in terms of the defense cuts and now saying we can't have defense cuts. >> defense represents one of the largest, actually the largest chunk of the defense budget in terms of one lump sum. if you don't want to cut that, where do you find the money. >> and 10% of the deficit. >> and okay, okay, guys, that's got to be the last word, thanks. something flying under radar this week about the health care law. and sending small businesses running to call the doctor. and neil cavuto and his crew answering that call at the bottom of the hour, up next, we punt on the pipelines and now look, who is coming for canada's oil. china. is this threatening to pump up prices here even more? ♪ i want to win ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ breathes deeply ] ♪ so clear, so bright
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this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. >> live from america's news headquarters, i'm anna kooiman, developing this morning, an oil spill in wisconsin shutting down part of the main pipeline delivering canadian oil to
refineries in the united states. happened near grand marsh. they're moving the investigators in, according to reports an estimated 1200 barrels of oil already leaked and no word on the cause, nearly two years to the day since the same company, enbridge, had another oil spill on another part of its network. overseas, new reports of nonstop fighting in syria, rebel leaders say the country's largest city is under a constant attack. all while soldiers are firing guns from helicopters. the rebels claim this offensive is not targeting strategic locations, instead. soldiers are firing randomly to cause a sense of terror. i'm anna kooiman, back to bulls and bears. >> our keystone loss, chinese gain? they're buying an oil company for 15 billion bucks, but chuck schumer is trying to block the deal over what he
calls u.s. security concerns, this after he helped to block the keystone oil pipeline deal and not only is the oil blockade why canada is turning to china and why prices are so high in the u.s. and toby, that someone is you. >> well, i admire mr. schumer on blocking, what they're blocking is our ability to take this massive resource and bring it into the united states, lowering our prices. guess what, call it the china move. the chinese look at us and throw their hands up and say, these idiots are going to block it, and we're in. we're not going to just buy this, this is the beginning and a lot of stuff in the gulf, but this oil is going to be double or tripled out of the money they ask from the pipeline from alberta to british columbia to china, and call it the china pipeline. >> and gary b, is that going to raise some prices, do you think, in the end? >> oh, absolutely, brenda, oil is supply and demand and the
thing that's baffling to me, i think every administration back to the truman administration has said, you know, we have to be oil independent, we have to at least get off the-- our dependency on the middle east. you have a country in canada, our closest allies for the last who knows you how long, has the second biggest oil reserves behind only saudi america and venezuela, and yet, we could build a pipeline there and be at least in partnership with them and instead we're squandering money on the silly green projects that have gone nowhere. it's baffling to me why we're doing this. >> jonas, why do we care if a foreign company is buying another foreign oil company? >> i don't. i mean, there's going to be a lot of deals we'll lose to the chinese. that government runs a totally different rule set, doing deals with cuba, we are neat going to and oil is going to hit the market somewhere and maybe in china.
i don't think that putting the oil to our refineries, will laurie our price. >> is sure, it will. we don't allow this because trans canada, coming into america and seizing ranchers land by eminent domain and they want to buy that land. >> they seized three ranches. >> and they've taken it away and that's how the chinese government operates, that's not how to works in america. >> well, chris, do we need the keystone oil pipeline or is china -- is china basically doing what we should be doing? >> well, i mean, i think from a national interest perspective, the smart thing probably would have been to have adopted the keystone pipeline from a jobs perspective and from an economic perspective. that doesn't diminish, i think, the valid environmental concerns that many people have the party had. i think we could have figured out a way to work around them and not necessarily have gone the road that we have. i think it's going be to be built, that's one question.
the other question in terms of the impact of oil prices i think we're completing it. we can build it, but living in fantasy land once we build it and oil starts flowing that gas price also drop immediately. it's a global commodity, a lot of external factors. >> it's not a global commodity, it's shipped right to china-- rights now you can buy oil $65 a barrel, canadian crude that's in the united states. you tell me that's not lowering the price? absolutely. >> air not going to actually tell me that just-- >> i'm sorry, i've got to get dave in here, too. and do you think it will pump up prices? >> and the administration punted on this two years ago, the pipeline should have happened two years ago, but the president fought hard to delay and block this pipeline, and china gets it, i don't understand why the administration doesn't. >> they do the get it. >> go ahead, chris. >> well, i mean, i was going to say that the notion that somehow oil prices are going to just drop because of the
pipeline being built. there are external factors going into oil prices, if there's a middle east crisis, the oil prices are going to skyrocket whether the pipeline is built. i would have built it for the jobs reasons, forget about the oil prices. >> we have an economy starved for jobs right now starved, this could add tens of thousands of jobs around the united states, perhaps 100,000 or more, it's a no-brainer. >> but quick here, chinese look at this game and laugh, these idiots could take almost 2 million barrels a day, and more in the the united states, no, we'll take it and we'll take not just 2 million, it's 4 million and they're going to just jump this business up like crazy. >> bottom line, gary b, the china play here, what's it going to do? >> well, look, brenda, it's not going to be good for us, it's going to be good for them and you know, it gets back to really this whole incremental, the negative as the administration likes to pose
it. they always say, shoot, even if we open you anwar tomorrow it's not going to reduce oil prices, they have the attitude, yes, things that happen tomorrow are not going to reduce the price at the pump today, but it's all of these things, it's anwar, it's off shore drilling. >> all of the above. >> the pipeline. >> yes, let's keep doing that incrementally and eventually, yes, price also come down and-- >> okay, that's got to be the last word. thanks, guys. so, the golden arches going for gold with a new healthy olympic menu, but someone here says, mickey d's is caving to the food police. and that will be an mcbummer for investors everywhere. so anyway, i've been to a lot of places. you know, i've helped a lot of people save a lot of money. but today...( sfx: loud noise of large metal object hitting the ground) things have been a little strange. (sfx: sound of piano smashing)
>> mcdonald's, mccaving? after taking heat from olympic officials, the long time olympic sponsor now hot on a new health push. rolling out an olympic menu with things like organic melt and veggie wraps and dave, you say it mccave to the food police could take a bite out of profits for lots of investors, how so? >> i' tell you, if mcdonald's is doing this to maintain visibility at the olympics, should be dumping the stock. i hope this is not the reason it's being done. the company has been struggling under the new ceo and it hasn't gone well so far this year. and we'll have to see if it works out. if it's secular trend and changing maybe i'll endorse it, i don't know if investors will. >> gary b, aren't they listening to the food police, but what people want, a
demographic trend for healthier food. >> on the one hand, yes, per dave's point, if they're caving and structuring their menu to be politically correct, that's bad. but in this case, i give companies like mcdonald's, starbucks, wall street, credit for being, quite frankly, a lot smarter than the government. they're doing this to make more money, i think, and give them higher visibility. look, when i walk into mcdonald's, if the mcrib has vanished and the quarterer pounder. >> no way! >> then i'm going to start worrying. >> don't say that, can't, and we need the quarter pounder, toby, go. >> and look it, this is-- >> the business strategy, liberal agenda, call it what it is, that's not the profit making decision, that's the reactionary deal, and i would be worried that mcdonald's shareholders as well. >> do you think that investors have to be worried about the food police, chris? >> i don't think they need to be worried about the food police. i mean, listen, i think that
mcdonald's an offering healthy food is a good thing. the only thing that upsets me, where were they when i was in high school and college and i'd eaten healthier i would have had more dates. >> you don't take a girl to mcdonald's for a date. >> i was in college couldn't afford anything, but mcdonald's. >> buddy (laughter) >> jonas, have you ever been in an mcdonald's. >> look at this. >> i know, look at that, and you know what? they should dtdz they're waste, money on the sponsorship and started in the 70's, made sense. and virginia slims used to sponsor tennis, and that's the way that it's going. stop wasting money. get out of sports sponsorship, and i'm sure they'll be out five years. >> unless they're eating concerts. >> we've learned a lot about you, chris. thanks so much and thanks for
sharing that with us and joining us today. >> one stock getting hammered in the news last week, it's about to head 25% higher by next year. the name next, and then at&t announcing plans for a huge stock buyback. usually, that's a good sign. so, why is someone here saying, it could be bad for jobs? looking for dividend-paying stocks for your portfolio? with the fidelity stock screener, you can try strategies from independent experts and see wh criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer?
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>> predictions. we've got gary b on the hot seat again. >> brenda, the economy has flat lined, but health care at least, is growing. i like johnson & johnson, i think it's up 50% over the next 24 months. >> toby, bull or bear? >> that's a sick prediction and i don't mean good. >> okay, dave, your prediction. >> boeing is on the runway ready to take off. i look for secular trends and can tell you as a commercial pilot, fuel costs a big concern for the airlines, 787 handles that problem, every
airline's going to want this, want this aircraft. >> jonas bull or bear. >> too sluggish globally. >> jonas your prediction. >> my power bill alone is going to make con edison, a year because the heatwave is not going answer way, anywhere, especially northeast. we've been feeling that. >> what do you think. >> that's going to last about a couple of months, been there, done that, a great stock, but has a stock chart that looks like a growth stock, not going there be, 4%. >> toby your prediction. >> at&t a going to be buying it back, good for thais buying it back, but bad for the equipment. that can be going to equipment or jobs, unfortunately more the next six months and trying to get predictability. >> at&t stock. >> i think up 20%. >> gary b, bull or bear? >> i like verizon better if you're going in that space. >> and for the economy, yes or no, bull or bear? >> vaguely bullish.
>> neil now. >> ♪ >> follow the money and follow history all the way to the layoffs? i'm neil cavuto, 101 days until the election, and the economy grew 1 1/2% in the latest quarter, the slowest pay for nearly a year, and some other numbers are also worth crunching. in nine of the past ten presidential elections the candidate leading in the gallup poll with 108 days left in the race has won that race. the man leading in that poll right now, neither. it's neither. what's this adding up to, to ben stein, charles payne, dagen mcdowell, along with julian epstein and charlie gasperino.
>> mitt is start to go come on strong with in the money category. when obama was raising more money than hillary, who, what, how. they're saying it's bush's fault, tsunami's fault. did you know that tom cruise and katie holmes broke up? and everything under the sun and they're not buying it. >> you know, if not for obama, that marriage would be okay. what do you make of that, ben stein, not the katie holmes-- >> i studied a lot of years at universities, i had no idea na tom cruise had an affect on the stock market. i want to thank charles for that. i think it's a close race and i don't think that romney is a particularly exciting candidate, but people are disgusted with the fact that mr. obama promised so much and delivered nothing, nothing. >> julian, the