Main Street feeling Wall Street success?

Herman Cain sounds off


This is a rush transcript from "Your World," March 5, 2013. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Well, stock prices and home prices, if you think about it, they're joined at the hip, but is that hip broken?

Herman Cain knows. Herman Cain with us right now.

We got indications today that home prices continue their advance. It's a bumpy advance. It's a closer to 10 percent advance, off ridiculous lows, I know, but many are saying housing first, stocks later, much as it was housing that had the hiccup and then the stock market sell-off. The trend is going to be stock's friend.

You say not so fast.

HERMAN CAIN, CEO, THE NEW VOICE: Not so fast, kimosabe.

And here's why. They didn't report how low was low was low when they talked about the increase in high of housing. Secondly, Wall Street might be celebrating about this new high. That's a good thing. Main Street is not feeling it, Neil, because Wall Street reflects the professional investors, the professional traders, and the Dow and S&P reflects primarily the big companies.

Now, remember, large corporations have more room to tighten the belt and squeeze out more productivity. You have a lot of Main Street smaller businesses. They don't have that flexibility. And then there's two other things that I think contributes to what you are seeing. Number one, uncertainty is still high.

And the desire on the part of people who own homes to get rid of them is still high. So they're not selling off because the buyers see it as -- the buyers see it as a buyer's market. The sellers, they are just trying to get rid of a headache in some of these markets.

CAVUTO: Well, you know, markets famously climb a wall of worry. I guess the same could be said these days of housing and that you have to bounce back from a ridiculous low to start bouncing back, and maybe housing has.

CAIN: Right.

CAVUTO: And maybe housing will. And all you said about these companies, big ones included, that are trying to sort of right their ship and move forward is all true, but the averages are what the averages are, and the end result is what the end result is.

Now, no doubt this president can come out and crow about a market that has doubled under his stewardship, and from the lows of March 2009, have come roaring back. Is he right to do that? Where do you affix the credit?

CAIN: No, he is not right to do that, because, remember, the last quarter of last year had an anemic GDP growth of 0.1 percent, which was revised.

Every expectation for GDP growth in the last three years has not been met. Now the expectation by some economists is that the GDP growth is going to be 1 percent or better.

CAVUTO: All right.

CAIN: Some people are saying it's not going to hit that. So, until you can crow about how the GDP growth is now getting above 2 percent consistently, you don't have anything to crow about.

CAVUTO: We shall watch it closely.

Herman, always good seeing you, my friend.

CAIN: Thanks, Neil.

CAVUTO: Herman Cain in Hotlanta, all right.

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