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Bulls & Bears
Is Market Excited or Worried About President-Elect Obama?
Gary B. Smith, Exemplar Capital: The market is down about 7 percent since Obama won the election. Obama's rhetoric indicates it will be a bad time for big businesses, especially if you are making outstanding profit like ExxonMobil. Spreading the wealth will apply to businesses, affect their profitability, and thus be reflected in their stock prices.
Tobin Smith, Changewave Research: Over the next 72 days, we are going to hear a lot of news about what Obama will and will not do as president. Obama will not be able to do anything about unemployment potentially rising to 8 percent. He can't do anything about the additional trillion dollar write offs from bad loans, etc. The market is trying to price this in first. This past week showed the reality of how rough the economy is.
Marc Lamont Hill, PH.D., Temple University: There is some doubt and anxiety about who and what Barack Obama will be in the eyes of the corporate community. Also, there is some gap between what Obama said and the realities he faces. Obama will be good for big business and help the automotive industry and provide a tax plan that will not cripple the rich. Obama has said America's future can't be put on hold because of the financial crisis. But he hasn't been clear about how he will get the money to push forward certain new social programs while continuing to lower taxes.
Eric Bolling, Fox Business Network: Wall Street wants to see Obama select a treasury secretary that can handle the job, understand the toxicity that brought the market down, and provide stimulus to give hope to the market. The market is in dire need of hope. Paul Volcker would be a good choice for treasury secretary, the market would like him. Anyone else the market will see as a negative.
Pat Dorsey, Morningstar.com: We can't know what the market thinks about President-elect Obama with only three days of market action. Candidates campaign in black and white and govern in shades of gray. Obama will have to get things done, and this requires compromise and dealing with the economic reality we're in. Some of Obama's proposals won't get done because we don't have the money.
Obama and Pelosi Want More Stimulus: Will It Help or Hurt Economy?
Gary B. Smith: A new economic stimulus package will not work. After the last stimulus package, the market has gone down 30 percent, unemployment skyrocketed. Consumer spending, which in theory should be affected positively by a stimulus, is at a 30-year low.
Marc Lamont Hill: The proposed new stimulus package will help the average Joe with day-to-day life, including unemployment benefits, extended food stamps, developing infrastructure. People need this stuff.
Tobin Smith: President-elect Obama has talked about prioritizing infrastructure and capital investments that would be very good job stimulants. When in a severe recession, a physical stimulus from the government will work as long as you get the funds out and create jobs. Sending checks to people doesn't create one job.
Eric Bolling: When George W. Bush signed the original stimulus package earlier this year, he said it was a one time event. The government setting a precedent to send out checks to people every time there's an economic downturn is a bad idea.
Pat Dorsey: The government should put checks in people’s pockets. But it could create jobs that rebuild electricity infrastructure, for example. Infrastructure investment benefits the country for years to come in a way that spending at Best Buy doesn't. However, it cannot be earmarked or part of pork barrel legislation. That won't do any good.
Are Americans Looking for a Free Ride From Obama Presidency?
Eric Bolling: We should not start handing out any stimulus money to any industry that is a dinosaur. We should not become a nation of moochers. It's a bad path.
Marc Lamont Hill: People can get help through a check in the mail or government funded structural reform. Just sending a check in the mail is not good. But if people need help paying for gas, then a tax cut will make that possible.
Tobin Smith: The notion of the government taking of us is not how America became great. It is entrepreneurship with the encouragement of government that allowed America to become what it is.
Gary B. Smith: 40-percent of the population doesn't pay taxes. That's 40 percent of the vote that is locked in for Obama. But no government official is smarter than the market. Government cannot create jobs better than private capital can.