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.
STOCK SELLOFF, JOB CUTS FUEL NEW WORRIES POST-ELECTION
TODD SCHOENBERGER: Big government is not the answer. We went through this for the past four years, we've seen government expand over and over again and now you have the same compensation with Congress as well as with the President in the White House. Nothing is going to change. What does this mean? We're looking at Obamacare, we're looking at Dodd-Frank - heavy regulation, heavy overhead costs and companies will not go out and hire.
STEPHANE FITCH: I agree partially because I think we should be concerned about government growing out of control, but I'm not so sure I agree with his facts. First of all government grew quite a lot during the Bush years and we had pretty robust private employment expansion during those years.
JONAS MAX FERRIS: I think for the labor markets that if you define success as a low unemployment rate the government can actually deliver that in some cases and I don't think that's a good measure of success. We're going to come back in four years and say, "Now the unemployment is at six percent and big government really works well," that is not a conclusion you should draw because if you look at Japan they've been running a fiscal stimulus for twenty years now. They have an unemployment rate of five percent but with a terrible economy and a terrible stock market. Unemployment should be low, but not with artificial constant perpetual deficit spending and I think our government can lower it over the next four years, but that's not necessarily a good policy for our country, economy and the stock market.
GARY B. SMITH: In the graphic at the beginning of the segment that Caterpillar for example is one of the companies laying off jobs. You would think that Caterpillar in this environment would forecast growth and would be hiring people, but instead they are laying off people and you have a long list of companies on that. The reason is that they see a sour economy. Why do they see a sour economy? It is because government is growing bigger. Study after study has shown that as government takes over a bigger percentage of GDP which it surely will because it's going to be growing faster than perceived or forecasted GDP growth. It crowds out private investments it crowds out growth period in the economy. Slower growth means fewer jobs. The list we had in the beginning will grow longer as the weeks unfold.
TOBIN SMITH: If bigger government meant for more employment than California and France would have the most vital economies in the world. In a lot of parts in the country in the last three days I've been speaking with small business people and my conference of course drew millions, but the really exciting one was the lecture on how to keep your company below forty-nine employees and ways to structure your company so you can avoid Obamacare. I listened to the guy talk and his number one conclusion was to higher less people and everyone else said, "You know, you're right!" You can't layer on another layer and another layer to small business people. For the small business guys you can say, "Look, that's my money. I'll just have two less people and I'll make up the difference in profits by the people working harder.
NEW CALLS TO REBUILD INLAND IN WAKE OF SUPERSTORM
TOBIN SMITH: In the Netherlands for years it had horrible flooding because of their tidal surges and they went out and built a new technology to help the tidal flooding, but the second thing is that they moved people farther inland. In California where I come from you don't rebuild places on top of fault lines. You would just move people because it just makes simple sense. In particularly in these areas where you're literally two feet above the shoreline we're going to have these types of things. We need to be smart about this and we need to be fair to these families as well as the taxpayer because they say that this is a fifty billion dollar deal but this will probably be a hundred billion certainly by the time it's done.
TODD SCHOENBERGER: It is proper of the U.S. government to actually say something as far as providing warnings. You think of seatbelt rules and wearing a helmet while you're riding a motorcycle - that makes sense, but trying to tell Americans where they should or should not live you really can't do that.
JONAS MAX FERRIS: We wouldn't have rebuilt San Francisco a hundred years ago if you just played the, "It could happen again game," because it could happen again. I will say New Jersey, Connecticut and New York - these states deserve federal money. They are net positive to the government. They're the rich states that pay in so twister states can get money from the federal government. They deserve their share even if it's going to happen in another ten years to New Jersey. I do say we draw the line at houses. We already have federally subsidized flood insurance and if you don't get that then you don't deserve additional federal money from taxpayers.
STEPHANE FITCH: It must be said that they are already bearing more in the fact that they've seen their homes destroyed and even if insurance covers it - the pain of losing a home is enormous. After hurricane Katrina we did hear a similar noise about not rebuilding the ninth ward. In fact, there was never a sweeping federal policy to avoid rebuilding the lower ninth ward and it's been partially rebuilt because a lot of the homeowners have privately made decisions on their own and they've said, "I don't wish to continue with this. I can't do that again." Let people make their own decisions, don't come in with any big sweeping policies, create some defenses for New York but you should not oversimplify sweeping decisions here.
GARY B. SMITH: If we allow where the government dictates where people live, where does it stop? Are they not allowed to live in the middle of the country in Tornado Alley, are they not allowed to live in California where there house can be consumed by a forest fire? I mean, really it's impossible. They government should stay out of it but the other problem is that there has to be some costs. Yes, Stephanie is right that these people have suffered badly, but people suffer badly all the time with a house fire and with a car crash - things like that. The problem is that the government is subsidizing making it, "Less costly" for them to live there. There has to be somewhat of a burden.
SOME WALMART WORKERS THREATENING TO STRIKE OVER "BLACK THURSDAY" PLANS
GARY B SMITH: Workers are welcome to strike. If they don't want to come in-then don't come in. But Walmart is right then to fire them. There are a lot of people who are looking for jobs. So they should be thankful that they have work at this time.
STEPHANE FITCH: You know, I agree in spirit. But I must say, I actually with the workers 100 percent. It's Thanksgiving. This is the one time of year when families gather together and hold hands and watch the Detroit Lions get trashed.
TODD SCHOENBERGER: You have five million Americans who have been out of work for more than 27 weeks. I'm sure they would love to have that job and probably at a lower wage. Look, you should be lucky to have this job. Who cares if you're working on Thanksgiving. So what if you have the Turkey the next day when you're off. It doesn't make any sense. Get to work Walmart people because you got a lot of people waiting in line to buy some goods.
JONAS MAX FERRIS: Workers should be thankful that they have a job. But Walmart should also be thankful that there're people who will show up-for what is essentially a low compensation package and deal with these crazy shoppers that are coming in at night and storming the place and endangering the workers. So I think the solution is to meet half way. Maybe offer some lucrative overtime from working the crazy shopper's shifts around the holidays.
TOBIN SMITH: Well, unfortunately a lot of jobs at Walmart are what we would call a low skilled job. You don't have a lot of choices with low skills. So either get higher skills or let somebody else have this job that you don't seem to care about.
GENERAC HOLDINGS INC.
TOBIN SMITH: Generac is the generator maker that allows a gas station to not have to close down because there's no power. I love them at the gas stations, I like them at people's homes, and I think it's up 100 percent over the next couple of years.
STEPHANE FITCH: I'm a bear. Company has too much debt and their earnings are projected to go down in the coming year.
GARY B SMITH: I like Apple Brenda. It's finally on sale! This stock never goes on sale. Its been crushed lately. I think it moves back up. Give it about 50 percent upside by the middle of next year.
JONAS MAX FERRIS: It has a lackluster year ahead of it.
STURM, RUGER & COMPANY (RGR)
STEPHANE FITCH: This stock makes a lovely pistol. I don't believe any of the nonsense that Obama passing gun control laws. They're going to have a lovely year or two. Up 25 percent in the year.
TODD SCHOENBERGER: Well I pre-rallied because everybody was out buying guns before the election. So if you didn't buy them three months ago, it's too late right now.
TELEDYNE TECHNOLOGIES INCORPORATED (TDY)
TODD SCHOENBERGER: Right now, thank a Veteran. It's Veterans weekend and I'm looking at the defense sector. Teledyne is one of these companies that actually has the smart software. Therefore, if we ever enter a smart war-this is the company that's going to be backing up everything. 15 percent by the fourth of July.
TOBIN SMITH: Love the veterans but I dislike this stock. I would take that Ruger gun and get rid of it.
PEPSICO, INC. (PEP)
JONAS MAX FERRIS: We might've been watching the tax increase in California. But two states made Marijuana legal and that's good for all the junk food. Up 20 percent in the year.
GARY B SMITH: Great product. Lousy stock.