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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; and Mike Papantonio, radio talk show host.
Obama's Plan to Create 600,000 Government Jobs: Good or Bad for Job Market?
Eric Bolling, FOX Business Network: When has a stimulus package ever worked? Creating six hundred thousand new government jobs is basically one massive entitlement program. It'd be a bad idea for the government. Give Americans the opportunity to earn more money; don't just give it to them.
Tobin Smith, Chagewave Research: Most of these jobs are not going to be "government" jobs but government contractors, hired from the private sector. This is something you do when your back is against the wall. It'll spawn real jobs for real companies.
Mike Papantonio, radio talk show host: This plan helps improve the efficiency of the economy. The CIA, Department of Transportation, FDA, etc. are all stretched very thin. We need more government jobs. It's all entitlement to conservatives until they say we have to stop immigration and want to hire border patrol agents. They're all for that.
Matt McCall, Penn Financial Group: Look at the numbers here. Say you pay these 600,000 new government employees one hundred thousand a year — that's $60 billion. Who's paying for that? We are — the tax payers. It's a terrible idea.
Gary B. Smith, Exemplar Capital: A similar plan was implemented by FDR and it failed miserably. It barely budged the employment needle. You're taking money from the private sector over to the public sector. This should be an issue for the markets to decide, not government. It's an inefficient way to stimulate the economy.
Homebuilders Ask for $150 Billion 'Bailout': Should You Pay for It?
Gary B. Smith: I'm absolutely incredulous on this issue. The original TARP objective was to unclog the plumbing in terms of the credit crisis. We've moved so far away from that. It's now a bailout for anyone who may have made a bad decision.
Mike Papantonio: Home builders are basically asking for the government not to waste the next $350B in TARP money on the banking industry to free up credit. Instead, the home builders are asking the government to help put men to work and use piled up inventories to build new homes.
Matt McCall: We need to get rid of the inventory out there right now. Home builders had a boom for 10 years, and they got greedy like everybody else. They made bad business decisions, and don't deserve to get bailed out.
Eric Bolling: Don't send money to homebuilders. There's too much inventory out there already. Spending the money on mortgage mitigation would be a much better use of TARP money.
Tobin Smith: Failure takes the money from the people who make mistakes to the people who don't make mistakes. Giving money to home builders would be like giving a guy in AA a week's vacation in Las Vegas.
"Burris Circus" In Senate: Is Congress Wasting Your Money?
Matt McCall: Congress is a waste of money. They wait for trouble to come to them. They are not going out after the issues.
Mike Papantonio: Republican congresses have blown huge amounts of money on frivolous things every time they've been in power. It's not just a Democratic thing.
Gary B. Smith: We created this mess. Congress is good at one thing: gaining power. They're not interested in solving problems, but just saving their congressional seat.