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.
FISCAL CRISIS IN FOCUS AS PRESIDENTIAL CAMPAIGN HEATS UP
CHARLES PAYNE: I thought Bowles-Simpson was a great launching pad. To Ryan's point it really wasn't serious in respect to social security, medical spending and spending caps. If we adhere to spending caps we wouldn't be in this position in the first place. I take his point, although I think it would've been a good starting point for everyone to say, "Let's start with this and then go from there."
BEN STEIN: We've gotten ourselves into such a deep hole that everyone wants to avoid taxes, but we can't avoid it. Yes, they've got cap entitlements but they're going to have to raise taxes. We don't want to do it and we have to.
CHARLIE GASPARINO: We don't have to raise taxes right now. It would be a dumb thing to raise taxes right now in the middle of what looks like a double dip recession. If you look at the numbers, the latest GDP numbers and consumer spending the numbers look bad.
DAGEN MCDOWELL: I think what Paul Ryan says does ring true. Obamacare in the Bowles-Simpson panel and what they were putting together was completely off the table. Medicare, don't touch it. Medicaid, don't touch it. If fact, Paul Ryan did work with Alice Rivlin on something similar to what he proposed on Medicare and it was left out of the final proposal. If you're going to tackle it, tackle it all at once because then you have to worry about the setup of tax reform and we do end up raising tax revenue but they end up not doing anything about the looming true monsters that are on the horizon for the country.
ADAM LASHINKSY: I think you put Paul Ryan in the hot seat and he inadequately squirmed out of it. Look, if you're in a boat and the boat is sinking and someone hands you a bucket you don't say, "Oh, no thank you. I don't need that bucket because I'm trying to get a bucket over here." You take the bucket, you start bailing and then you work on the problem after that.
NEW WORRIES FOR ECONOMY AS CEOs ARE WAY OF HIRING
CHARLIE GASPARINO: I've criticized them a lot but I'm telling you that printing money right now is necessary to prevent us from going into a double dip.
CHARLES PAYNE: When you ask these CEO's what the problem is they will point specifically to the administration. Listen, if you think this war on success is bad right now a second term in my mind would be devastating because I sincerely believe that the administration is going to go after profits generated overseas before they're brought back. I think they're going to reach over and take those profits and put it in an infrastructure bank. I think this notion of taxing publicly trading companies that their profits belong to the public domain - of course the CEO's are frightened. You have thirty-eight czars out there, you've got the EPA running amuck, and the national labor and relations board - of course they're afraid and intimidated. By the way, did you see the economic data this week?
DAGEN MCDOWELL: Durable goods orders however you look at it were awful. They plunged down thirteen percent over the last month. Economic growth in the second quarter was abysmal. Housing still looks very shaky and you name it, CEOs are worried about it. Health care costs, the health care law and looming tax increases unless Congress actually works.
BEN STEIN: I don't know if we're going to have a double dip but I don't see a vigorous recovery except in housing. In some parts of the country it is extremely vigorous, but I think we may just be in a situation like we were in the late thirty's in which we have very slow economic progress or none at all and we are just in a prolonged period of slowdown. I don't see what's going to end it frankly.
ADAM LASHINKSY: It's clearly true with regard to housing that when things get better we feel better even if they're not up to the same level where they were before. We see this with autos too. We're still not back to where we were with autos, but it feels good when there is progress. The stock market is also doing very well and that makes people feel good.
REPORT: AIRFARES IN U.S INCLUDE 17 DIFFERENT GOV'T TAXES, FEES
BEN STEIN: Unfortunately, they're going to get higher. Airlines are generally speaking not always losing money to afford higher prices.
CHARLES PAYNE: They have to meet compliance costs, tax protectionism, full fare advertising cancellation accommodation and all of these mean more for the flier.
CHARLIE GASPARINO: It's a crummy business and we need to do compliance. One plane goes down and you cut compliance cost and you're in big trouble.
DAGEN MCDOWELL: Flying is not a right in this country and if you have to pay more so be it, and if you don't like it then don't fly.
ADAM LASHINKSY: As a frequent flier I'm willing to pay for compliance and this is a terrible business. It's not a terrible business because of government deregulation, it's because it's a terrible business.
CHARLES' TRIPLE STOCK PLAY
CHARLES PAYNE: (JOY), (KORS) and (GT)
ADAM LASHINSKY: The only one I'm going to pick on is Michael Kors. I think stocks like these are risky.
BEN STEIN: I first bought (JOY) in 1962 when I was in high school and a lot of its work is moving around coal in various forms. I don't think it's a booming business right now.