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Bulls & Bears
This past week's Bulls & Bears: Gary B. Smith, Exemplar Capital; Tobin Smith, ChangeWave Research; Eric Bolling, FOX Business News; Matt McCall, Penn Financial Group; Marc Lamont Hill, PhD, Temple University.
Trading Pit: McCain vs. Obama: Best Commander in Chief for the Economy?
Matt: It's McCain. First off, he wants to cut the corporate tax by 10 percent to 25 percent. This will allow U.S. and foreign-based companies to stay here (or think about moving their headquarters here). It would also spur more growth of the corporations that employ the middle-class that is struggling on incomes taxes, McCain wants to keep the Bush tax cuts and lower rates on dividends and capital gains. This will give investors an incentive to remain in the stock market and not punish the top earners in the US that pay the majority of our taxes that fund our government. McCain's plan has a long-term vision that will get us through the current economic crisis and have the country on solid ground for years to come. Obama on the other hand will tell the people whatever they want to hear and react to short-term trends in the economy. That is what got us in the situation we are in – McCain has the long-term vision.
Eric: McCain wins by default. I think neither he nor Obama have a handle on how to fix the economic ills. But McCain's stance on taxes (not raising them) and spending (a freeze) trumps Obama's tax the wealthy and spread that wealth borders socialism. We are a nation built on free markets, not socialistic ideology and government.
Gary B: Obama would be terrible for the economy. Here are five reasons why:
1. He's basically against free trade.
2. He's pro-union (an industry killer no matter what industry.)
3. He wants windfall profits taxes on oil.
4. He wants to raise taxes on small businesses.
5. He wants to raise the minimum wage, thereby driving up costs and killing even more businesses.
Tobin: If "redistribution of wealth" was the most successful economic system, then Norway or Sweden would be the world's strongest economies. Since that is not the case, I'll stick with free market capitalism.
Sarah Palin's Plan for More Drilling in America or the Dems' Plan to Ban More Drilling in Amerca: Which Is Better for Your Wallet?
Matt: It's the Palin plan! Here's why: A report out of the EIA (Energy Information Administration) this week suggests that oil wells may be running dry in the future. This will ultimately be the end result if we do not begin to drill now! The issue with drilling is that politicians believe we do not need to drill with oil in the $60s because they take a short-term view of the situation. Palin is spot on by pushing drilling whether oil is $150 or $60 – she is thinking long-term.
Gary B: The cheapest, most cost efficient energy source is oil. It makes sense to increase the supply, thereby further lowering the price. In addition, it's what the market wants, NOT want the government decides we should have.
Bolling: Given that oil was just near $150 and gas was just $4.we better start exploring now for the future energy needs of our economy. The U.S. exports hundreds of billion of dollars to governments that dislike us. That could be money and jobs here if we drilled domestic wells rather that buy foreign oil.
Tobin: Unless the oil market sees an aggressive offshore drilling policy from the U.S. we will see oil $100 in 2010 just as the US economy would be coming out of its 24 month recession—which would kill the recovery in the U.S.
The best time to start drilling for oil is when drilling costs have come down - like now. If we wait for oil to get back to >$100 pricing to "reconsider our reconsideration" of offshore oil drilling, we go back into recession in 2010.