DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.
Bulls & Bears | Cavuto on Business | Forbes on FOX | Cashin' In
Bulls & Bears
This past week's Bulls & Bears: Gary B. Smith, Exemplar Capital; Scott Bleier, HybridInvestors.com president; Tobin Smith, ChangeWave Research; Eric Bolling, Fox Business News; and Marc Lamont Hill, Ph.D., Temple University.
Trading Pit: Will Dems' New Energy Plan Push Gas Prices Higher?
Gary B. Smith: Well, it points out again how stupid the Democrats are. Let's just use Exxon as an example. Forget the fact they (Exxon) make less per dollar revenue than Google or Microsoft. Let's forget the fact that from 2002 to 2006 they paid more in taxes than they earned in the U.S. The fact of the matter is when we tried a windfall profit tax in the 1980's, it led to shorter oil supplies.
Marc Lamont Hill: The gas tax holiday works. It can take some of the ridiculously obscene profits these companies are making and distribute it to poor people. Even if gas prices don't drop dramatically, we can provide aid to people who are at the lower end of the social rung of the ladder.
Eric Bolling: Here is how they (the Democrats) are going to fix the high price of gas. Number one, they are going to give a gas tax holiday. And John McCain wants to do that as well. He's wrong as well because that is going to increase demand. Number two is a tax on oil companies. If I am an oil company, here is what I do: I explore, I produce and I pay taxes. If I have to pay more taxes, I am going to explore and produce less, and that will drive down production. Demand up and production down, that is just economics 101.
Tobin Smith: I feel like we are in a time warp! It is not like we have gotten any smarter in 20-30 years. We are going to solve a problem by disincentivizing production and incentivizing demand. They are attempting to disincentivize demand.
Scott Bleier: It is not just a democratic problem. It is both parties' problems. Haven't we learned our lesson in 30-35 years? This is the greatest transfer of wealth out of this country that we have ever faced, these high oil prices. We are sending money everywhere. We are making everybody rich and it is coming out of our pockets. It is time to bring it home. It is time to drill here. It is time to take our assets and use them here.
Fallout From Burma Cyclones: Food Rationing in U.S.?
Eric Bolling: Yes! Rice went to $25 per hundred pounds, and then it backed off. Sam's Club was limiting purchasers. This time the cyclone may wipe out 600,000 tons of rice at a time when shortages are sprouting up. From 2001 to now we have half the supply of rice in the world. I went out on the street a couple of days and I paid $5.79 for a bag of rice. Then I went into Food Emporium and paid $13.65 for the same bag of rice. I asked the manager why, and he said "I ran out of low-priced inventory". So since her had to pay more for his inventory, we are all going to be paying a whole lot more.
Marc Lamont Hill: Eric and I agree on this. The American people are scared. So they are importing food in large amounts and that is going to drive certain people out of the market. We have to ration the food to make sure there is enough for everybody.
Scott Bleier: Absolutely not! You can buy all the rice you want at a given price. If you begin to ration, you will create shortages. Rice will come off the shelves and people will hoard. That is exactly what you do not want. Let the markets take care of it. There is plenty of rice if you pay the right price. There are food stamps and government aid for some people. If you ration, that's how you eliminate supply and encourage hoarding.
Stock X-Change: Bolling's Best Buys
Click here to watch this segment in its entirety
Marvel (MVL )
Vale Do Rio (RIO )
iShares MSCI Emerging Markets (EEM )
Research in Motion (RIMM )