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CRITICS: LABOR BOARD'S NEW PRO-UNION RULE WILL COST JOBS
GARY B. SMITH: The various proposals put a dagger in the heart of jobs. Anything that is pro-union by definition is going to raise wages. What happens when you get with mandated higher wages? Unemployment amongst teens now is 24 percent. You get companies like Boeing to lower the cost by going to South Carolina, and next step is companies like Boeing going overseas and that will cripple the job market and that's the way we are going if we continue to follow the direction that the NLRB is setting.
STEVE MURPHY: If you shorten the period before an election is held, workers will be more productive because you are eliminating a work place controversy. Gary is demonstrating what the employers are looking for and business is looking for is an opportunity to distort the outcome of the elections, when he said more unionization. He believes that a shorter period means more unionization which by definition means that the system is totally unfair.
TOBIN SMITH: This is trying to stack the deck for unions and they are only left in the capital intensive markets. Not only do these proposed rules shorten the time for elections, but it doesn't shorten the time for the union. You can spend six months working the whole deal and the actual election can come down to less than 10 days. The other thing, they are changing the way you define a bargaining unit. The bargaining unit is the entire group of people that work at a company. In this law, they wanted to take it down to two people. Two people can create a start a unionization of anything. That is preposterous.
JONAS MAX FERRIS: There is less relations then you would think. Let's assume that everything went to high union rates for companies. You know, there are companies that have 70 percent unionization rates and Japan and they have higher unionization rates than American. It might lower unemployment and that seems good for the economy. However, as Gary said, it raises labor cost and time and half for overtime. That leads the company to hire more people. They limit hours and then you can't use someone 60 hours, you got to hire more people. No one can work more than 30 hours and you need to hire more people and lower the unemployment rate in a very inefficient bad way.
ERIC BOLLING: Look at the NLRB. It is supposed to be bipartisan and have an independent board. It is not, its 3 to1 pro-labor and last guy was put on, Craig Becker, he swayed it 3 to 1 and this is as close to card check as they can get. They pushed it to the point where you walk in the door and say, ‘you want to be in the union, don't you?' They are closing the gap and if it fell, so did all of the other measures in congress.
WHITE HOUSE TAPS EMERGENCY OIL STOCKPILE AS GAS PRICES FALL
ERIC BOLLING: There is a political emergency for President Obama with all of the bad things going on in the economy. Manufacturing and consumer confidence are low so he releases oil. Think about it for a second. This is the Strategic Petroleum Reserve that is in place for disruption emergencies, there is none of that Libya is offline because we are bombing Libya. When every Libya's offline Saudi Arabia is already making up, so this has nothing to do with the SPR which is supply disruptions.
STEVE MURPHY: This is what the SPR was created for. Remember the Libyan oil is the highest quality oil. This is part of an international effort, not Barack Obama and his political advisors deciding to do this.
TOBIN SMITH: The other countries are having such wonderful political climates and this would not be helpful. The issue is that when we have a strategy that allows us to take care of the bumps in the road. This is a band-aid. My lord, we are replacing all of the oil from one good off shore well here in light sweet crude. Instead of having a plan, what we do, the expedient band-aid, and to Eric's point had nothing to do with the disruption.
JONAS MAX FERRIS: Technically it is not being used right, but they are running out of economic stimulus ideas and they can't spend more and you have all of the oil in the salt mines. There is plenty of oil but it is up to almost $100 a barrel and it has been working the last few days and oil prices have plunged. If we get in a serious emergency in a few weeks this is going to seem really stupid that we were using this just because we don't like $4.00 gas. But, economic stimulus is smart because it will drive the price down during a weak economy.
GARY B. SMITH: There is an emergency it is a political emergency. Obama himself running for president in 2008 said the SPR should open it up if there is a major catastrophe. His poll numbers stink. Instead of doing the right thing and opening up the gulf for more drilling, that would immediately supplement the loss of oil to Libya, he does the politically correct thing. It is idiotic. But I can understand when your poll numbers are going in the ditch this is the thing to do.
REPORT: HEALTH CARE LAW GLITCH GIVES MIDDLE CLASS AMERICANS ACCESS TO MEDICAID
TOBIN SMITH: Oh my gosh, as a matter of fact if this was not intentional, you could strike it in a day. But they have not. It was purely intentional and part of 21,000 pages and 118 new bureaucracies that were set up. They knew this was part of the process if you ask anyone who was involved in that horrific process.
ERIC BOLLING: It is a bunch of garbage. 2,700 pages in this bill there is a lot of places to hide, and I'm sure there will be a lot more we will find and I can't imagine how much that's going to cost.
GARY B. SMITH: I can take a stab at it. Look at Medicare, 50 billion worth of fraud a year. You think that will be that much fraud? No. They have figured out everything. Unfortunately, if a private company loses that much money, they go out of business.
STEVE MURPHY: We can't afford the health care system. We spent 18 percent and our European competitors spent 9 percent. We are not competitive with those countries and jump to the chase, we need universal health care.
JONAS MAX FERRIS: The problem here is that you can retire at 62 and some Social Security benefits, remove that problem and this goes away. This plan is going to cost more than they said and I doubt this is going to somehow lead to a half trillion dollars. You're talking about someone having to go on Medicaid at age 62 and that is someone with no assets.
TOBIN SMITH: (HXL) Hexcel Corp.
JONAS MAX FERRIS: Time Warner (TWX)
GARY B. SMITH: General Mills (GIS)
ERIC BOLLING: ProShares Ultrashort Dow30 (DXD)