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PRESIDENT MEETING WITH BIG CEOS ON JOBS, BUT SMALL CEOS HIRE MORE
Tobin Smith: The policy of dealing with big business is not the right one because they don't create the jobs. Two out of three jobs, since 1990 has been created by small business, beyond that, the startups, the health of the economy are the new startups and with the alphabet soup from Obama care to EPA, etc, startups are down 20 percent in the new cycle and that's a tragedy for our economy, and that's a tragedy for jobs. We have to eliminate that alphabet soup and guess what, we'll create some jobs, the small people will.
Caroline Heldman: Well, I don't think it's an either/or. I think you need to target both small businesses and President Obama which he already has, right, with the hiring incentives for each new hire. It did help, actually, it did spur some growth earlier in the year, remember when small business was adding more jobs than big business and I think that the Obama administration is smart to target big business, if you want to look at economies; they're going to hire more people if you can incentivize big companies. He needs to incentivize, and I know that Eric Bolling has a great idea. Bringing the 3 trillion dollars stock piled back to the United States. There are plans on the table to do this with big business and if the Obama administration can incentivize, more bang for the buck going after big business and small, but I think he needs to go after both.
Eric Bolling: Well, I'll get to that in one second. Because of things like Obama care, there not sure where the health care costs are going and here is the problem. I don't think it's either one, its manufacturing, the big business and small businesses, manufacturing has crawled to a standstill in America and we have two numbers this week that showed that manufacturing is dropping, if not stopping completely and we need to get manufacturing back, going, and one way I've pointed out, with Caroline on another show, bring back the $3 trillion that are being held by U.S. corporations and banks, overseas, and bring it back tax-free, but require 25 percent of that money, to be used for hiring and/or buying new equipment and that will spur hiring and also spur investments in their own businesses every company would do it.
Gary B. Smith: Exactly not, Brenda. And you know, I had agreed with Caroline until, on her notion that he should be talking to everyone, until, quite frankly, I saw what the big business dunces came up with the startling ways, hire more construction workers, and promote travel and tourism. As a former corporate drone myself, I can tell you that these guys never met a payroll, never had to fire people unless they got a form from HR. They never had to start a business from the ground up. They never had to deal with paying for things on a credit card. And what Obama should do, in order to know what small businesses are facing, are exactly the things that Toby implied. They should have a guy that had a thousand pizzerias, a guy who started up a dry cleaner; they know what small businesses are facing in terms of regulations, taxes, health care. These guys, from American Express, the emperor's clothes, they have no idea what's going on.
Jonas Max Ferris: Big corporations are swimming in cash because they're run well, unlike many small businesses, and they haven't hired as many people because they're very efficient. Most big business in America have higher profit margins because smaller businesses have more problems. Big businesses, to get more to the specific point, you need to talk to government and they've been coddling small businesses throughout this whole regulatory trend and I'll give you perfect examples when they go out to banks and they give special higher regulations to bigger banks and with the health care thing, small businesses with less than like 25 employees get a credit to hire people, and you don't get that if you're general electric, so they're actually harder on larger businesses and they need to be hard because they're the ones who actually export more in many cases, the dollar gets weak, we need them. Let's not be beating on the big business.
WORRIES GROW COMPANIES WILL CONTROL HOW WE USE OUR GADGETS
Jonas Max Ferris: This is patently offensive for a lot of reasons. First of all, a terrible idea for Apple it's going to make the consumer who is really their customer, not the concert promoter or the artist, think that this is just not cool this product that they have this kind of power over my behavior and second of all, there is a lot of products on the market used illegally, radar detectors, among many and we don't want those products, either off the market, the next step or preventing us from using them. It's like Gestapo in our products and it's bad that people break copy right laws and illegal copy stuff, but there are ways to solve that problem that aren't having the product limit how you can use it. I think it's a bad idea both for the company and our rights.
Caroline Heldman: I don't like this idea either and would agree that it's going to potentially tarnish the brand, Apple being a kind of creative, free, youthful image and this along with the tracking, it sounds a little Darth Vader and big brother and my big concern, it would restrict activities that are not illegal, I'm going to a concert tonight and I want to do a face-to-face and talk with someone in the concert venue, I'm not going to be able to do that and record my friend whose birthday party we're celebrating. That doesn't make sense and it really doesn't look good for Apple.
Tobin Smith: First off, this is the 58 to 60 billion dollar a year issue, piracy, we've raised an entire generation of people on Napster, which almost killed the music industry because everybody, including the makeup artist I was just talking to said you know, I can't stand paying for music, I've never paid for music in my life. There is a reason why they're doing it guess what, if Apple doesn't do this one little piece, in Broadway, you know, they jam the signals for your phone for many years, because of this problem and let them take the one piece that does not enable piracy, not going to change anybody's life and it's going to help to fight the piracy battle.
Jonas Max Ferris: Why should you be able to set your cruise control to 80 miles an hour, it's not legal anywhere in America and it's endangering other people.
Gary B. Smith: Well, maybe for the first time ever, I agree with Jonas. I can't believe it. I'm going to have to do a sanity check, but Jonas is right and summed it up in the first five seconds, it's offensive, it is offensive. And my biggest concern, Apple is doing to the corporate cronies, concert promoters, because they have a link in with the music. I understand the dollar thing. What prevents the government, my concern, going to an auto manufacturers, hey, if the cars go over 65 miles an hour, stop the accelerator, once you get into the slippery slope of restricting as Jonas so eloquently put, how products are used, hey, wait, maybe we could crack down on this and maybe make people eat vegetables and do this and that, that's what i don't like about it.
Eric Bolling: Look, if you don't like it, Gary, Jonas, doctor, and then don't buy the darned product. Let the market punish Apple, it's not the government's job to punish Apple. Get government out of the markets and consumer will tell us what we want and don't want. Frankly, Jonas, if you were so concerned about your 80 mile an hour cruise control on your Vespa, you wouldn't buy the darn thing and go somewhere else.
FANNIE/ FREDDIE PAYING REALTORS $1,200 PER FORCLOSED HOME SOLD
Gary B. Smith: It's absolutely insanity. You look at the list of programs that the government has had from the mortgage interest deduction to the low interest loan, to the whole Fannie and Freddie debacle, the reason we got into this crisis, which started with the Fannie and Freddie trying to push people into houses. We have the great mechanism or clearing up the housing mess. It's called the market. Let it operate. The government has learned nothing by involving themselves and now it's going to get worse.
Tobin Smith: I agree for all of your points except the last point. This is like an auto or car dealer that's got way too much inventory. They've got to get rid of it. Put it on sale. This is a marketing mechanism. Forget about the stupid things they did in the past and this is actually the only good idea they've had. This is going to help them clear out not homes that would have been sold anyway, but foreclosed homes that we, the consumer, the taxpayers, own, and we need to incentivize buyers to buy them.
Eric Bolling: I think that Fannie and Freddie owe us 200 billion and pay us back this before playing around again, like Gary says with the free market. Let the free market clear the market. We don't need $1,200 incentives anymore than we need $7,000 first time home buyers.
Caroline Heldman: A quicker way to do it, it incentivizes for the home owner and the real estate agent who is perhaps not moving a home because the cut is much lower, because it's been out for a while, it's not as attractive and I would disagree what's got us into the mess and important to note that two-thirds of subprime loan holders qualified for prime loans so it was predatory lend that go got us into this.
Jonas Max Ferris: I'm going to tell this, and a Cadillac, if they sell a lot of stuff. We own the properties and it's important to keep that in mind. Fannie and Freddie, already possessed the homes and they've got maintenance, taxes, condo fees, all kinds of garbage we're paying for, and you've got to move the inventory, yes, and by the way, these programs are great if you're looking to buy a primary house, there's slew of these properties and they'll pay your closing costs.
Gary B. Smith: (UUP)
Jonas Max Ferris: Vanguard Financial (VHF)
Tobin Smith: United Continental Airlines (UAL)
Eric Bolling: Safeway (SWY)