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 managing partner; Pat Dorsey, Morningstar.com director of stock research; Eric Bolling, FOX Business Network; Tobin Smith, ChangeWave Research editor; Matthew McCall, Penn Financial Group president, and Larry Winget, author of "People Are Idiots and I Can Prove It."
Dow Soars Nearly 500 Points on Obama's Treasury Pick
A money man rally? Stocks soaring on news that President-elect Obama's picked Timothy Geithner to lead the treasury. Is he the best guy for free markets?
Tobin Smith: The choice of Timothy Geithner for treasury secretary shows Obama is a free trader. Geithner was the guy who put the people in the room at Bear Stearns and said "fix it." He has solved problems, he's a free trader, and he surfs! Geithner has been in the fire many times before. He is calm and he has the right demeanor for the job. The cost of capital is about two to three times more expensive than six months ago. The big gorilla Geithner will have to deal with is the high cost of capital.
Gary B. Smith: I think the Geithner pick is a bad one. I'd like to see someone that isn't some "brainiac" that has never worked a day in his life. He's book smart, not street smart. I'd rather have Joe the Plumber or his ilk in charge. This guy will meddle with the markets and screw things up. Friday's rally was really just a bear market rally.
Pat Dorsey: Geithner was heavily involved in the Asian financial crisis of 1997, and he has been involved in bailouts before. He's a solid pick, except for the fact that he miscalculated and was instrumental in letting Lehman Brothers fail. But on balance, he's a good pick and a free trader.
Eric Bolling: Financial stocks largely did not rally on the Geithner news. A lot of it is because Citigroup can't find its way out of the forest. It's unclear how much of a role he had in letting Lehman fail. The only major criticism of him would be he let Lehman fail, and then supported the $700 billion bailout. He changed the rules in the middle of the game.
Matt McCall: The market was looking for a reason to rally; Obama gave it to them. It's a short-term fix against uncertainty, but longer term I don't think he (Geithner) is into the concept of free markets, and it'll hurt.
Bailout Tab Costing Each American Household $15,000
$15,000… That's how much it costs each household for $1.7 trillion in corporate bailouts so far this year. Would we better off getting that money ourselves instead?
Matt McCall: The corporations are idiots. Give this bailout money to Americans and let them spend. The money will trickle into the economy and create its own stimulus instead of giving it to fat cats.
Gary B. Smith: Just handing out money to Americans isn't a good idea. A much better solution is cutting taxes. It creates greater incentive to work more, earn more, and the government can pump those greater tax revenues back into the economy.
Larry Winget: Giving the bailout money straight to the American people is a great idea. Consumer confidence is down, and we've lost confidence in our government. Give the people back their money, and with that $15,000 they'll have more confidence and feel in control of their tax dollars. Retail will do better, credit card companies will get payments, and people will pay their mortgages or even save a little. If we have to choose between giving the money to corporations or the people, I'd give it to the people.
Tobin Smith: Right now, consumer prices are deflationary. The smart idea is to hold onto cash, not spend it.
Eric Bolling: We are in the depression stage of grief. Anything that comes out now makes the market go down. When main street and Wall Street throw in the towel, then you can step in and start buying. Until then stay out.
Pat Dorsey: Didn't we try an economic stimulus six months ago? The statistics show around ¾ of the money was saved or used to pay down debt, not to spend and stimulate the economy. If you want to stimulate the economy, this is not the way to do it.
Is Holiday Shopping Your Patriotic Duty?