Neil Cavuto was joined by John "Bradshaw" Layfield, WWE Wrestler and author of Have More Money Now; Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; Ben Stein, economist; Price Headley, investment strategist at BigTrends.com; and Dan Colarusso, deputy business editor at the New York Post.
If Arnold Wins, Will Wall Street?
Neil Cavuto: Despite recent allegations surrounding Arnold Schwarzenegger (search), some of the latest polls show Californians may still be planning to kick out their governor this Tuesday, and vote in Arnold! So, if he does win, will Wall Street win too?
John "Bradshaw" Layfield: Absolutely. Regarding these new allegations that have come out, you're electing a governor not a pope. Gray Davis has shown himself to be absolutely inept as a leader. They have a worse credit rating than Latvia. Something has to change. You've lost about two hundred thousand jobs out of Silicon Valley alone. We're having to import things that should be made here in America. Arnold has said he will make California a business friendly state. And he's got one of the greatest investors, Warren Buffett, on his advisory committee.
Gregg Hymowitz: I don't think it's going to make a bit of difference whether Arnold wins or Gray Davis serves out the rest of his term. There has to be some tough choices made here and one of the things they have to do here is raise taxes. It's not going to be a popular thing but there's going to be some serious issues. I don't think it will have any effect on the market either way.
Ben Stein: I think people are looking forward to a change. Gray Davis has been a complete incompetent. I hate to say this but I agree with Gregg that any change Arnold makes to the business climate will be marginal. It is not really going to effect the semiconductor industry or the high tech industry very much. If we get a rebound, I think it will coincide with Arnold's governorship but I don't think it will be because of Arnold's governorship.
Jim Rogers: I happen to agree. Arnold will make marginal differences. The best he can do is make it a more business friendly state. The State is $38 billion in the hole and no matter what he does it will still be $38 billion in the hole.
Neil Cavuto: The idea is that hopefully he won't have it $38 billion in the hole for very long.
Jim Rogers: If he can cut spending dramatically, and it would have to be very dramatically, it's not going to help the state economy. And it's not going to effect the stock market at all.
Ben Stein: Silicon Valley was booming and it went into a cyclical dip. That's coming back and Arnold doesn't have much to do with that.
Gregg Hymowitz: The problem is also the procedure. It took a million dollars to get enough petitions to get this recall done. What is going to stop another million dollars being spent on another recall by a wealthy Democrat to get Arnold recalled? The process is what bothers people. I don't know Gray Davis that well but he was dealt a very difficult set of cards.
Jim Rogers: Wait a minute. He hasn't been dealt a difficult set of cards. He's been governor for five or six years now. He's the one who played the hand and ruined the state.
Gregg Hymowitz: Jim, I don't think there is a state in the union that is economically sound right now and part of that is because of the national economy. All of these states spent way too much money and none of them put away rainy day funds.
Neil Cavuto: Yes, but California exceeds all of those states put together.
Ben Stein: Gray Davis's contempt for the law was the real problem. During the electricity crisis, he set up structures that would've turned us into a socialist state. Regulating electricity and not even allowing judicial review of his own hand picked regulators. That was arrogance on a huge scale.
Neil Cavuto: Bradshaw, you're arguing that if Arnold gets in he can change this whole dynamic?
John "Bradshaw" Layfield: In three days, we have the chance to change the head guy. That's all you can change at this point. You can't change the gridlock in Congress. You can't change the $10 billion accruing every single year in debt. Gray Davis didn't see the internet bubble coming, and a lot of people didn't. But he hasn't done anything to correct it.
Jim Rogers: If spending went back to where it was three or four years ago before Davis starting raising spending through the roof, the state would be okay. He raised the spending, he spent all the money. He caused the problem.
More for Your Money
Neil Cavuto: This Thursday marks the one year anniversary for what appears to be the stock market bottom after the bubble burst. Since October 9, 2002, the Dow is up 31 percent and the Nasdaq is up 69 percent. Price, where do stocks go from here?