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Bulls & Bears | Cavuto on Business | Forbes on FOX | Cashin' In
Bulls & Bears
This past week's Bulls & Bears: Eric Bolling, FOX Business Network; Scott Bleier, HybridInvestors.com president; Tobin Smith, ChangeWave Research; Gary B. Smith, Exemplar Capital managing partner, and Ephren Taylor, City Capital CEO.
Gas Prices at Record Highs: Rip-Off or Bargain?
What terrible timing. Gas hits a record high -- another one! The national average now very close to four bucks a gallon. This, as millions of us hit the road today on one of the busiest travel weekends of the year. So why is someone here saying gas is "cheap!"?
Eric Bolling: Gas is cheap! Against everything else. A gallon of ice cream, $8.99, a gallon of a vente Starbucks latte, $23.99, a gallon of printer ink $8,000! In the U.S. a gallon of regular gas costs on average $3.91. In Italy a gallon is $8, Norway $9, in Turkey $10. Forget about absolute price. Let's talk about how it feels. Right now if you were to buy 1,000 gallons of gas, that represents about 9 percent of your per capita income. Twenty years ago, it represented 13 percent. So it is actually getting cheaper because our incomes are getting better.
Gary B Smith: People don't think about ice cream or printer ink on a daily basis. They think about bread, milk and things like that. I knocked back to the lowest octane my car could stand, so you know things are getting serious out there. Everyone is looking at gasoline! This is an emotional issue, not an economic one.
Ephren Taylor: The average American consumer is feeling nothing cheap about the price of gasoline right now. I have talked to families who are spending $600 to $700 a month just to get to work in fuel costs. That's a big chunk of money coming out of the household for gas.
Scott Bleier: You don't need a Starbucks latte you need gasoline! As far as the other countries are concerned, they are funding socialized health care with gas taxes. In the United States we don't have that. The fact is that gas is ridiculously expensive.
Tobin Smith: America was built on cheap oil and unlimited hydrocarbons. But we weren't competing with the other countries. The other countries were asleep for about 100 years, but they are awake now. Compared to the countries we are competing with, our prices are very low. Economies in Europe are growing 3 or 4 percent and they are paying $9 a gallon. What we are going to do is substitute. We are going to stop doing things, change the size of our cars, consolidate, and that is not bad.
Stop Crazy Spending by Congress to Start New Bull Market?
So what is the one thing President Bush wants to do before leaving office? Neil asked him in an exclusive chat on the White House lawn:
(BEGIN VIDEO CLIP)
Neil Cavuto: This is your defining issue for the remaining months?
President Bush: No, fiscal conservatism is one of my defining issues for the remaining months. I am deeply disappointed in the Congress on the farm bill. You know, I vetoed the farm bill because, first of all, farm prices are high. And our agricultural sector is doing fine economically, which is good for America. And the idea of paying non-farmers' taxpayers money to farm up to, you know, over $500,000 or so, makes no sense to me.
(END VIDEO CLIP)
Brenda Buttner: No sense to the president, and costing you a lot of cents. Try 300 billion bucks of your money. The same week congress pushes that farm bill -- look what happened to stocks -- talk about a harvest of minus signs! So, is the wild spending in D.C. hurting stocks on Wall Street?
Tobin Smith: Spending from the government is not what is killing us. It's what we are spending it on. The president is right. The idea of this type of farm bill is insane. What is going to kill the stock market is if we start taxing capital the way the democrats are proposing!
Eric Bolling: The president was right to veto! We are spending about $100 billion on things like crop insurance. Corn and rice is up one hundred percent. We are taking farmable acres off of the market and that's not good!