Market plunge sparks new recession fears

Dow suffers biggest one-day point loss since August 2011

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Summer Selloff: Dow Suffers Biggest One-Day Point Loss Since August 2011

Gary B. Smith: A week ago you and I were sitting in New York talking about the economy and I was worried about it. There are a couple things going on. One, I think the market always tells a story and it tells a story about what may happen in the future. We saw the worst weekly decline, Dagen, since October 2008. We all remember 2008. It was horrible. I think we have the underpinnings of something that could be worse. You know, we have seen wages stagnant for like 30 years now. We've seen housing still not back to its old levels. Demand for oil has dried up because economies across the globe are not growing, and labor participation rate is at an all-time low. Add those things up and I think you have some serious storm clouds ahead.

John Layfield: Yeah. And the government has done nothing to help this economy. There's so much gridlock in Washington, D.C., on both sides that you don't have an immigration plan, a tax plan, you don't have any type of national energy plan. So there's nothing that opens up jobs in America. I disagree somewhat with my friend Gary. I think what's happening right now is the second largest economy in the world, china, is slowing down. You're seeing a reprising of stock markets around the world. You look at china. Goes from 7 percent to 5 percent. You say that's not much. Still going to 5 percent. That's incredible. But that is a 30 percent decline. If you look at this in a historical context, look at the S&P, 500 in 1995, 20 years ago, a four time increase in 2000. It includes two big dips, a 1,500 to 1,000 twice during the housing crisis and also during the financial crisis. Ronald Reagan over simplified it saying markets go up, markets go down, but this is a correction long overdue.

Lisa Boothe: Well, potentially. Look, we've also had incredibly uneven economic growth as well. I think what's been happening here is the Federal Reserve has been propping up the stock market and there's no historical evidence to support that we can perpetually do this. I think if you couple that really with, you know, these regulations that we've seen under president Obama and this regulatory state, as I said, we could potentially be heading for a breakdown

Chuck Rocha: You know, it's weeks like this that remind me my papa was a pretty wise man keeping his money in a cigar box. We're creating about 200 jobs a month, unemployment is down from 10 percent to 5 percent and foreclosures are at a ten-year low. Obviously I'm a political consultant and this is not my forte, but looking at the 401(k) investment for everyday Americans, whether you're a small business man like me or a mom and pop, most of your wealth outside of your home is tied into the stock market, it brings real concern to me. I think it is somewhat of a correction, but I think there has to be a big change or we'll constantly see the ebb and flows the wrong way in my opinion.

Donald Trump Calling to End Birthright Citizenship

John Layfield: It's harder than a yes-or-no answer. Yes, I agree for the most part. Look, this came out of the 14th amendment. It's an embarrassment to our country that we even need the 13th, 14th, 15th amendment to tell people it's not okay to own other people. Children of slaves were given citizenship. That should not have happened. It's not meant to cover something like what's going on now. There's two different points here. 400,000 Babies are born to undocumented people in the United States every single year. It costs billions of dollars. A lot of those people have been here 10 to 20 years. That is not the problem. The problem is the one who is get pregnant and come to our country and have that baby specifically so that baby becomes a U.S. citizen. There are distinctions. The latter part I disagree with and it's a serious problem we need to stop.

Chuck Rocha: Let me give you the Mexican redneck version of this where I come from. There's no black or white. We have to fix our broken immigration system. Undocumented workers bring in $13 billion of revenue to our economy. We have a system that needs to be fixed. Chamber of Commerce, organized groups saying let's fix this thing. Donald Trump is throwing red meat to the right of the right and it's smart politics because he wants to win the nomination. We should look at these people as people. They aspire to be Americans. They want to be here. They want to pay taxes. But let's give them their shot.

Lisa Boothe: No doubt that illegal immigration is costing our country money. The average illegal immigrant has a tenth grade education and poorly educated households, whether they're native, U.S. citizens or illegal immigrants end up taking more from benefits than they end up paying in taxes. So there's no doubt about that. Politically speaking I think that it is probably stronger ground for republicans to look at things like securing our borders, looking that you're actually utilizing the laws that are on the books and de-funding sanctuary cities and looking at things like that than looking towards ending birthright citizenship.

Gary B. Smith: I agree Dagen. I think we need to divide up into two separate category, one, the economic impact and two the morality or sense of right or wrong impact. I disagree with Lisa a little bit. There's been plenty of studies shown, lining up with Chuck's point, the children of the illegal immigrants and the illegal immigrants themselves contribute more via payroll taxes, sales taxes, et cetera, than they take out of the economy. On the flip side, Donald Trump points out I believe we spend almost $50 billion a year on education. Now, the other part, though, that I think galls people a little bit is you're at the line on the ride at the amusement park. You've been waiting there for 20 minutes. Someone comes to the front of the line and cuts in. Is it a big impact on you? No. You have to wait an extra ten seconds. But it galls you a little bit that you put in the effort. I think that's how people in the United States feel now. We put in the effort, we lived here, grew up here, did everything right; now these people are coming over the border and taking what we developed. That I think is the issue as chuck so rightly points out we need to fix.

Some States Looking to Tax Users for Streaming Video

Lisa Boothe: Absolutely. This better not happen before the next season of "House of Cards" or I'll be upset. Your end up hurting online businesses and it stifles the economy. This is a bad thing.

Chuck Rocha: A lot of us who spend time at work doing research or watching a lot of John Layfield rapping videos; we all do it and might as well admit to it. Tax that. As long as the rich guy is taxed the same amount I'm taxed, tax us all. Then you can reduce other taxes that are not fair for anybody. If you want to tax me a lit bill at a time, bring it on.

John Layfield: I agree with chuck, which is not bad, but I agree on the tax. It's not fair to tax DVDs, shows, movies and not tax something online. It's not a fair competition. I hate myself for saying this but you need to tax it.

Gary B. Smith: I would never publicly say that I hate john, but I do disagree with him and I agree with Lisa on this. Look, if you want to hurt an industry, we basically in the united states, we're reduced to two industries that we can really be proud of, the Internet and entertainment out in Hollywood. Take the Internet. We have the greatest innovation there. Uber, Netflix, Google, for crying out loud, we tear envy of the world. Now these governments because they're addicted to the revenue flow that they lost, they want to go in and tax, i.e., Hurt these industries. You want to see what regulation taxes do. Look no further than the coal industry. Basically the government's trying to shut down the coal industry with their regulations and their taxes. That's what's going to happen to the Internet innovation we've seen.

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