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HERMAN CAIN'S 999 PLAN: IS IT BETTER THAN WHAT WE HAVE RIGHT NOW?
WAYNE ROGERS: Well it's simple, as you said, it's simple, it's clear, the public can understand it, that's one of the things that Herman is very good at is that he lays it out in a very simple term that everybody can understand. Now, maybe it's not nine, nine, nine; maybe he's got the digits wrong. Ten, ten, ten would be easier for all of us. Maybe it's nine, nine, five. It's some number, but whatever it is, it's a succinct number, it's a finite number, and it's easier for everyone to understand, and secondly, it gets rid of the congress getting in there and lobbying. They can't start messing around with it because it's set and that would be a great thing. They'll never pass it, but it's a great thing.
JONATHAN HOENIG: Well, that would actually be in my view a positive thing Cheryl, because it's actually a tax cut, and thus a growth stimulant for the country in general. I mean Cain's plan is so fundamentally better than the whole arbitrary hodge-podge of politically motivated tax law we have now. As Wayne pointed out, it's flat; everyone can understand it. Why is tax law the only law that I actually needed to hire a lawyer to even explain it to me. More importantly, it's flat; it treats everyone the same. It's not the progressive tax code we have now that hurts high income earners and redistributes wealth-come. It treats everyone the same; it's flat. It's a great start for this country and it would totally re-energize the economy.
SUSAN OCHS: No I don't and if you look at some of the independent analyses that have been done they all are saying it's anywhere from 200 billion to 500 billion a year short. Which means we're either going to add significantly to our long term deficit, or he's planning massive, sort of unrealistic spending cuts in the short term.
TRACY BYRNES: Well you know what Cheryl? It's fair. No one wants to talk about that because under Herman Cain's plan lower income people will actually have to pay something. Right now, over 40 percent of them don't pay any federal income tax. Under Herman Cain's tax they will, so that I think is why we're getting a little pushback, but everyone's been hollering about fair share; this is fair. Look, it might not be perfect, but at least he's talking about it. He is the only one out on the campaign trail who's talking about true tax reform. That is what's halting job growth in this economy right now, and whether he's got the right plan, I don't know, but he's certainly got the right idea.
JOHN LAYFIELD: Well you have to understand, Mark Zandi, no offense to him, very much benefits from being with the administration's side. That being said, small businesses are paying this high corporate income tax rate. They're the ones that pay the highest corporate income tax rate in the world. Because of the loopholes, there's a 72 thousand page-plus, IRS system right now that has been adding on loophole after loophole; all legal, but that benefits big business. Small businesses are the ones stuck with this huge tax bill. If we could take it down to some flat level. Wayne's right, it may not be nine, maybe it's 15, maybe it's 20, but if we could take it down we would spur hiring in this country.
MANY AMERICANS WILL DO ANYTHING FOR A JOB WHILE MANY JOBLESS PROTEST ON WALL STREET: WHO SHOULD AMERICA PAY MORE ATTENTION TO?
TRACY BYRNES: I mean, the fact that we put this kid on TV, who clearly doesn't even know what she's talking about, if that was my child I would smack that kid six ways till Tuesday, because you know what? Everybody's looking for a handout these days and they don't deserve it. Nobody deserves anything, you earn your own way in this world, and the kicker Cheryl, is that kid is probably in college and her parents have to work on Wall Street to pay the darn tuition that she doesn't seem to care about.
JOHN LAYFIELD: I mean this is class warfare run amuck. This is encouraged by the politicians and the reason is you look at this going back to Hamilton and Jefferson; this is what FDR did with the Pecora Commission. This nothing new; when you're ratings are as low as this politicians' groups are, you've got to find somebody and it's pretty much mass murderers and Wall Street are the only guys less than our politicians right now, but people have to understand; where does this divide come from? With low interest rates that this administration, this Fed have started, it benefits the rich, it benefits the banks, it kills the poor, they can't get credit. You could have mortgage rates at one percent. They don't have the money to put money down for a new home. Bailing out the banks; the corporate tax rate, it all is making this divide bigger and bigger, but instead they're trying to pass the buck; let's blame it on the rich guys. These guys need to understand, policies in D.C. have caused this problem.
SUSAN OCHS: Well I was going to go down there wearing a TARP alumni t-shirt and see what kind of response I got, but the interesting thing about this protest is that it is poorly organized, they have no agenda, there are no demands that they're really articulating clearly, and yet, it has sort of cropped up in other cities around the country, and the common thread here is frustration. They're expressing a frustration that I think a lot of Americans are feeling. It's the same kind of quiet frustration that you see in those job seekers that are posting on craigslist. The normal channels aren't working and people don't know what to do about it. It's the sense of I don't know where else to go
JONATHAN HOENIG: Of course! Job seekers are totally, diametrically opposed to these Wall Street occupiers, in their own words, sleeping out in public parks, private parks, hundreds arrested blocking traffic, and actually Susan you're wrong they're making demands; free healthcare and debt forgiveness. Job seekers, those folks posting on craigslist, they're not occupiers, they're not making demands, they're looking to trade, they're looking to actually engage in capitalism to offer a value for another value. That's what capitalists do; these occupiers are a mob, and unfortunately you see it breaking up in other cities. It's tremendously fearful because they operate by intimidation and force, that's their modus operandi.
WAYNE ROGERS: They are not the evil doers. The evil doers are the congress that created this. No, seriously they created too big to fail. Not too big to fail, too big to exist. That's the problem. So you've got massive banks doing things that people don't understand, and these people in the streets don't understand. These are not job seekers, these are activists who are, you are rightfully saying, just exercising frustration against the system and not understanding the system. They have no idea that the free market is the foundation of Western civilization. They wouldn't be able to go see plays and write books and do all of those things if they didn't have some sense that this is how we created Western civilization. That's what should be supported.
COURTS TELLING STATES NOT TO CUT ENTITLEMENTS
TRACY BYRNES: Cheryl, entitlement spending is the biggest drag on this country right now. No the courts are not helping. Truth is, they should stay the heck out of it. When are they going to take their medicine with this stuff, and you know what? It all comes down to politics because again politicians need votes, seniors vote, and these entitlement payments are going to keep going out the door until we figure out a way to change the system.
WAYNE ROGERS: Well the court case turned on a technical thing about notice. When notice was given and whether notice should have been given before. So I understand that, but the subsidy part of this, Tracy's right, this should be done in the legislature. The legislature has got to cut these things. They've got to do it; they all know you can't just keep spending this way forever, so they're going to do it and somebody's going to get hurt. Nobody wants to get hurt, but somebody has to get hurt a little bit on this and everybody's got to give a little. So this has to come to pass; she's right, and the legislature is the place to do it.
SUSAN OCHS: You know if I were the governor of a state with 11.2 percent unemployment though, I would probably think twice about how quickly I was going to move 40 thousand people off the welfare rolls and try to push them into a job market that is so slack right now that they're going to have a lot of trouble getting jobs. So, you know you understand that you have to make cuts that's absolutely right; every governor's facing that problem, but you know what, they're might be some other ways to do that.
JOHN LAYFIELD: We are doing fine. Look, we have a state that has pretty much stayed, we have a few problems with deficit, but has pretty much stayed within its means, and that is what the federal government is not encouraging right now. You look at this jobs bill. All this is, is a reelection bill. You're going to hire teachers, you're going to hire firefighters, you're going to hire police, and you're going to tax those evil oil companies and rich people. You're going to hire them until after the next election, then the states are going to have to let them go to be able to pay for this over the next 10 years. The stimulus bill, this new jobs bill, all this is, is to make states stop firing people and keep entitlements to prevent civil unrest.
JONATHAN HOENIG: It's just so tragic Cheryl, how entitlement breeds dependency. You know, here, in Greece, and everywhere else in the world wherever they're created. Of course, once they're created, however small they are, and this is a relatively small dollar amount, they're almost impossible to get rid of, of course because people say I'm entitled to it; I have a right to it. Of course, no one, not even a suffering person in Michigan has a right to other people's cash, right to other people's value of their lives, so it's the philosophy that needs to change, and it should start in Michigan tomorrow.
WHAT DO I NEED TO KNOW?
TRACY BYRNES: You know, we should all take time and reflect on Steve Jobs' life. He came from humble beginnings, created one of the greatest companies in the world, created all these jobs; something to emulate, and the irony here though Cheryl is all those protesters on Wall Street are carrying around iphones. What the heck are you protesting?
WAYNE ROGERS: Well if you're looking for yield, and there are guarantees in certain REIT's. Look at CYS. It's giving a yield above 17 percent.
JOHN LAYFIELD: Last year on this show I got laughed at for predicting that the Texas Rangers would go to the World Series. They're going back to the World Series. ESPN's a cash cow, they're going to benefit. Disney's the stock to buy.
JONATHAN HOENIG: Well, like the occupy Wall Street crowd Cheryl, I am also fighting the Fed, but my vigilantism is selling treasury bonds short. Check out DTYS. This is an exchange trade and note that will rise as the 10 year yield rises, as interest rates go up.