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Bulls & Bears
This past week's Bulls & Bears: Gary B. Smith, Exemplar Capital managing partner; Pat Dorsey, Morningstar.com director of stock research; Scott Bleier, HybridInvestors.com president; Tobin Smith, ChangeWave Research editor; Joe Battipaglia, Stifel Nicolaus market strategist, private client group; and Peter Schiff, Euro Pacific Capital president and author of "Crash Proof: How to Profit From the Coming Economic Collapse."
Trading Pit: Dems Di$$ Economy: Are They Right Or Wrong?
Democrats dissing the economy, warning you how bad it is out there. But do the numbers tell another story?
Gary B.: It's a great economy! Unemployment is low and household net worth continues to grow. Things are pretty great for the economy.
Peter: The Democrats are wrong: the economy is even worse then they think! In this case numbers do lie. To get a 3.9 percent rise in GDP the government assumed that inflation rose at an annualized rate of only .8 percent, less then 1 percent a year. The actual inflation is much higher than that. In 2000, the average American earned 70 percent more than the average Canadian. Now we earn about the same. A year from now the average Canadian will probably earn twenty-percent more than the average American. This is not a record high our economy is a mess.
Tobin: Homeowner cash flow is higher that it has ever been and employment rates are high.
Scott: The economy has been very good. Granted there are some issues now in the financial world, and the Democrats are certainly going to seize on that. It's politics you have to expect it.
Pat: There are good arguments on both sides. It's going to get a little ugly. When bubbles deflate the bottom is always worse then you thinks it's going to be.
Joe: The Democrats will raise taxes using surcharges on the very people who create jobs and spend money. They want to regulate parts of our economy that don't need regulation. If spending is curtailed on the federal level, there is no need to change the tax code.
$3 Gas at the Pump: Will Holiday Shopping Suffer?
Scott: It will. Gas prices have stayed very quiet while oil has shot up to $95 a barrel. There is this magic number at three dollars. Above $3 the consumer gets hurt, below they're ok.
Gary B.: The consumer won't let the price of gas effect their holiday shopping.
Peter: It's hard to say that high gas prices will impact American's ability to borrow by this holiday season. But if things continue at this pace there may not be that much holiday shopping in future years.
Tobin: There are a couple of things here. People are actually driving less. And refinery production is up at 92 percent. The price will come back because people are driving less and buying smaller cars.
Joe: In the near term more disposable income will be spent on gasoline and heating oil. This will eat into disposable spending elsewhere.
Stock X-Change: Buzz Stocks!
Stocks creating a bigger buzz than the blockbuster 'Bee Movie'