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.
PRESIDENT OBAMA SAYS JUST A BLIP IN ROAD TO RECOVERY, NOT A DOUBLE-DIP
Todd Schoenberger: We are headed for a double-dip, Cheryl, because when you start looking at the economic data from everything with housing, durable goods, jobs, you name it, we're headed for that double-dip. We're not there yet, but we will be by the fourth quarter of this year.
Jonathan Hoenig: Well, I don't know if you want to call it a double-dip, Cheryl, but the economy isn't strong. Look at housing, look at jobs, look at all the areas the government has spent so much time- and unfortunately- money trying to better, but in my opinion has only made it worse. Now, we don't only have the weak economy, but we've also got the bills coming. If I'm putting money to work right now it's going to Singapore, and it's going to faster growing parts of the world.
Christian Dorsey: The official dating of a recession is something that has a lot of complex factors that go into it, and officially we've been in recovery for the last two years. Yet, for most people, it feels like the recession has just continued. So, for the average American, especially those who have been unemployed or know people who are unemployed, are experiencing stagnating wages this really feels like a recession. So, our conversation about whether a double-dip is upon us is largely irrelevant to those people who are already feeling great pain from this very stagnating economy. And, it's very clear evidence in my mind that more needs to be done to increase jobs and to grow wages.
Tracy Byrnes: Christian's right, nobody's cares about the textbook definition of when a recession starts or begins, what inflation is, what we know is we're struggling to make ends meet and it's really expensive to buy food for our family. So that's all you need to tell me, and anybody else out there these days. You know why the President's not worried about a double-dip? Because he darn well knows they're going to just infuse more money into this economy. Call it whatever you want, call it QE3 in drag, because that's what I've been calling it, because it's never going to be a QE3. The QuiDity will be pumped in, and all will be well in President Obama's world.
John Layfield: Reagan had the opportunity to increase the federal government, to increase the deficit to create jobs. Bill Clinton had the black swan of internet coming along that helped create jobs. There is no job creation on the horizon right now. McKinsey Report came out Friday saying we would have to create twenty-one million jobs by 2020 just to keep up with population. Their estimate is that we're going to be at 9 percent unemployment through the rest of this decade; that is 9 more years because there is no job creation on the horizon. Unless you have something like a Boone Pickens plan that creates this new economy, nothing is being done because housing and unemployment are the biggest drags in this economy, that's not going to change.
ANTHONY WEINER ADMITS TO SCANDAL BUT WILL REMAIN IN OFFICE -- DOES THIS EPITOMIZE WHAT'S WRONG WITH D.C.?
Tracy Byrnes: D.C. has gone full-blown, egomaniacal. Take the private sector CEO Mark Hurd from Hewlett Packard. The guy admitted to inaccurate expense reports and a week later he resigned. He did something wrong. He stepped down. Why? Because he had an ethics clause just like we do. Instead, the poor taxpayer has to pay for ethics committee meetings to see if our politicians are right or wrong. These guys are creeps. They're putting pictures out there. They're doing whatever they're doing. They're wrong! Get them out!
John Layfield: But, they've always been held by a different standard. We have to have an ethics committee to show this guy's a creep? What else do you need to know? Look, I agree with Tracy, but this has been going on for quite some time. I think if King David could have sent a nasty text to Bathsheba, he probably would have done it, but the problem is, you don't have wise politicians making stupid decisions. That's gone on since the beginning of time. We have stupid politicians making stupid decisions. The problem in D.C. right now is so much bigger than a few nasty pictures being sent over twitter.
Todd Schoenberger: That's right and there is zero accountability when you look at D.C. right now and this is a great example of that. You have somebody who's out there actually going through this process, and we have to have an ethics committee investigation, and now you're going to have all of these other subcommittees talking about it. How are they supposed to get their job done in D.C., when they're busy doing this kind of stuff? They have way too much time on their hands.
Christian Dorsey: We can just go back the last two years; Eric Massa, Chris Lee. He's the latest in the pantheon of political perverts. It seems like a lot of them are from New York, so I don't know exactly what's going on there, but listen, what Representative Weiner is alleged to have done is not criminal, and if the voters of New York want to see him leave, they can fire him in the next election. Or, if they feel strongly about it, they can recall him now. That private sector analogy doesn't even work.
Jonathan Hoenig: The point is that Weiner himself holds CEO as criminals. Weiner supported the 2002 Sarbanes Oxley Bill, which holds CEO's, who sign off on statements that are untrue, as criminals. Here's a guy who gave blatantly false interviews to every media outlook day after day after day, telling lie after lie after lie. By his own standard, he should be held as a criminal. So, I don't know where you get off saying he did nothing wrong. I mean this is his own standard. Warren Buffett said it best. It takes 20 years to build a reputation and five minutes to ruin it. He's ruined it.
NEW STUDY SHOWS YOUNG ADULTS GET SELF-ESTEEM BOOST BY RACKING UP DEBT: IS D.C. TO BLAME FOR SETTING BAD EXAMPLE?
Tracy Byrnes: They won't stop anytime soon and look what they're doing to these kids. Let's expand the earned income tax credit so they qualify. Expand food stamps so we have more people on it than ever in the Obama administration. No one is embarrassed to file for bankruptcy anymore Cheryl. There's just no sense of I should do this and take care of myself. 14 trillion dollars in debt; we throw that number around all the time and nobody seems to care. We're sending an awful message to our young people.
Jonathan Hoenig: I think this is BS, Cheryl, honestly. Maybe they feel better about having a credit card or the ability to take on debt, but self-esteem comes from thinking rationally; from thinking objectively, long-term. You don't do that by acting, as you alluded to, like our government has. By spending money now, and hoping that someone else picks up the tab down the way. People feel rational and empowered when they know they are acting in their own self-interest. Running up a big bill with no one to pay for it is not in anyone's self-interest.
Christian Dorsey: Well in most cases, their student loan debt, that's a useful investment for the future, but if you're looking for someone to blame about this lackadaisical view of running up credit card bills, blame credit card companies will give a credit card to anybody with a pulse regardless of your ability to pay. There are documented issues of minors receiving credit card offers. It's an unbelievable situation where people who have not worked for the ability to have the privilege of owning and using a credit card are able to get one without any strings attached. The biggest issue I think that government needs to be worried about in terms of sending a message to kids is not raising the debt ceiling and in other words not spending money you have no intention of repaying down the road.
John Layfield: It's very simple. Don't buy a boat! It's that simple. If you can't afford a boat, don't buy one. You can't blame it on the banker; you can't blame it on the credit card company. Don't buy a boat. You want to know why they feel better? They live in houses they can't afford; they drive cars they can't afford; they have toys that they can't afford. They come home and see all of this stuff and they don't have a way to pay for it. That's why they feel so much better living in debt, because they come home and see all these toys and think, boy they're mine. They're not yours! They're the banks and you're going to lose them eventually.
WHAT DO I NEED TO KNOW?
Tracy Byrnes: I love how everyone thinks that raising taxes brings in money. The Chicago Mercantile Exchange is saying we might be out of here. They're thinking about moving headquarters. Corporate tax is at nine and a half percent. Personal income taxes in Illinois are up 66 percent. That's crazy! They might leave because of it.
Jonathan Hoenig: It would be a terrible, terrible tragedy for the city, but it's not uncommon in the state. Earlier in the year Caterpillar was talking about leaving Illinois because of taxes. So of course it would have a tremendously devastating impact on the local economy. That's what happens when taxes are raised.
I'm taking a look at platinum. Platinum is up. It is the most precious of precious metals, but still nowhere near the all-time, inflation adjusted high north of 26 bucks an ounce. It's about eighteen-hundred today. So check out PGM as one. Now, don't go all Montana militia. Don't make it an all or none. Make it one part of your portfolio and not the only part.
John Layfield: Give Lebron James a dollar, he gives you 75 cents back because he doesn't give anybody the fourth quarter. Averaging less than two points in the series because they forgot the Dallas Mavs are ri-Dirk-ulous. Buy some Texas champagne and get ready for the party Dallas!
Todd Schoenberger: Strauss-Kahn, Tiger Woods, Schwarzenegger and now the Weiner. Sex sells! If you look at Weiner's laundry it goes through the roof. Buy Limited Brands for Victoria's Secret.