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.
FLURRY OF BAD ECONOMIC REPORTS SPARK FEARS OF NEW RECESSION
Eric Bolling: Unfortunately I think we are heading into a double dip recession. I thought we were recovering. The jobs report was atrocious, 54,000 Jobs. You take 12,000 jobs away because it's a revision from the month before, 42,000 Jobs. That means one job was created for 350 Americans out of work. The job market, the biggest market in the economy,. The other big market the housing market. The housing market can't recover. It's on the heels with the highest foreclosures on record. It can't recover until the job market recovers. Who cares what the stock market is doing the economy is in a dip right now.
Gary B. Smith: As an investor and trader I always am concerned with what the stock market is doing. First of all there's no direct link between unemployment and housing, mainly because housing prices have been going up for decade upon decade. The only link between them going down and unemployment going up has been for the past three or four years or so. But there is also a link on the flip side to how people feel about the economy and getting back to your point Brenda, the stock market. That has been going up except for the past few weeks or so. There is some goodness there. I am not convinced that we are going into a double recession. It is two consecutive quarters of negative GDP. I don't think we are there yet. Worse, though, because of the administration's medaling you might have a few more five or six more years of this sideways malaise that wears you completely out.
Jehmu Greene: Have you ever heard of that term; get your panties out of a bunch. I think some people need that advice. It is not all doom and gloom. Slow growth is still growth after all. I think the talk of a double dip recession is unnecessarily alarmist. We need to look at what has happened over the past 15 months. There has been consistent job growth in the private sector. Over 2.1 Million jobs have been added to the economy. Clearly high gasoline prices the vehicle supply disruption in Japan the severe weather we have been affecting these numbers that came out, and there not good, but not going to cause a double dip. What needs to happen is sacrifice with investment?
Tobin Smith: Have you ever heard of the term putting lipstick on a pig? We have a lot of things holding growth back. I don't think we go into a double dip simply because we have the Federal Reserve, if you follow the stock market and follow what's on the economy, they will do whatever it takes. This idea of a Quantitative Easing is going happen. Why is it going to happen? We don't have enough private sector job creation. There is still too much uncertainty. There is not enough demand.
Jonas Max Ferris: We have tax cuts over extended and you are seeing lousy job figures come out this week. We have had five weeks in a row the market sliding down 5 percent. We are running out I think the double dip will be caused not from taxes not from governments doing this or that I think it will be housing. Housing which recently started falling again. That is the worst you have seen. if we go to lower prices another 10-20 percent down nationally. That will go to a double dip recession. It will affect the stock market and so on and so on.
NON-UNION IL DISTRICT PAYS TEACHERS SIX FIGURES; TEST SCORES JUMP
Tobin Smith: You are paying for performance with good teachers, your also firing bad teachers. All of the successful systems in the United States have done this. We have hundreds have done two things extremely well. They have created a culture that has parents and kids involved and teachers involved and pays for performance, number one. Number two, they fire the bad teachers. Every system that is failing does not fire the losing teachers.
Jehmu Greene: Paying teachers more is exactly what unions have been trying to do forever. Paying teachers more is what should be the norm. Bad teachers are the exception, clearly the district we are talking about where we are looking at $100,000 salaries for these teachers in Illinois that has great scores coming in that is also a really elite district. If you look at who is behind fighting to make sure low teacher pay is a serious issue that's taken seriously it is the unions it is the National Education Association. They have been doing that since the early 20th century. They will continue to do that.
Gary B. Smith: I don't think the answer is necessarily paying teachers more. I think its paying teachers fairly. I think that's the point Jehmu misses. Of course unions are after higher wages for salaries for teachers. That's the whole point of being a union they are a monopoly. That's the only thing they are after. Any union wants all pay as high as possible with responsibility to be as little as possible. That gets back to the point Toby made. It's hard to fire a teacher whether it's a New York school district or Montgomery County. They are not as accountable as in the private sector or the non-unionized sector. So the two things are at odds.
Eric Bolling: If they bring test scores up great. I have been saying this for years get rid of the unions pay for performance. The problem with the unions is it guarantee's for job with or without performance. Last in, first out, and tenure. You get rid of those two things the only way to do is that is break the unions, you do those and you have probably a successful school system.
Jonas Max Ferris: I hesitate to recommend a system that will lead to higher property taxes because that's what it will lead to. Unions they try to create a situation that is secure but secure jobs pensions, healthcare it doesn't lead dynamic work force. You won't get fired but you will have higher performing teachers if you have a higher pay scale and you fire just the same. It means a higher payroll like a private company and means property taxes are going to go up. It will be a higher performing school kids will learn more but its higher payroll. If you don't have kids and you have a house you're not going to like it.
OBAMA COMMERCE SECY IS ADVOCATE FOR GREEN ENERGY
Gary B. Smith: I worry about his past; he has clearly been on the government doll. The problem is when government gets the money they generally spend it. Infectively and inefficiently it's better spent in the private sector where you know money has been spent where you want it to go then where the government spends it. Here you are spending money where the government thinks it's going to go. We have tried that in the 70s with Sin fuels and high speed rail and cockamamie stuff it never works.
Jehmu Greene: I think that his green past is an addition to his resume that we should be cheering for. Clearly a lot of the growth of our economy looking forward is going to depend on a clean energy economy. I think his resume brings a lot to that. We also have to look at the 20-years he spent at Edison and his work on the boards of Disney and Boeing. I can't think of a better person to help reach the President's goal of doubling our exports.
Eric Bolling: Let's talk about his founding of the Natural Resource Defense Coalition. This man may be almost an eco-terrorist. I will call him a radical activist. He says we should be off all oil and gas in 20-years. This is a guy that will run the commerce department? This whole administration has invested in green and green only. In addition, gas prices doubled since Obama.
Jonas Max Ferris: First of all we are going to be off oil in 30 years anyway because we are going to run out of it. I thought we liked guys that ran companies. He ran a huge power company which is great. I think it's good to have an environmental person as long as they don't try to pick winners, ethanol all of this stuff.
Tobin Smith: He is from a regulated industry. What he knows to do is work congress work regulatory side and secondarily we have all of the independence we need. With natural gas in the United States we could cover every car and house in the world yet we don't choose to do it.
Jonas Max Ferris: (PSC) PowerShares Small Cap
Gary B. Smith: Goldman Sachs (GS)
Tobin Smith: Delta Airlines (DAL)
Eric Bolling: Sunoco (SUN)