tv Cavuto on Business FOX News January 28, 2012 10:30am-11:00am EST
15 mers. >> brenda: guys, toby, what do you think about it. >> i don't know what he said. but downward dog on that. >> brenda: you just don't like jonas. >> i love jonas, i just don't know what he said. >> brenda: cavuto on business next. >> the president wants companies to bring jobs home and now one of the ceo's of a big company tells the president to have a reality check. a jobs plan that has at least one major ceo scratching his head. the president wants to penalize companies for creating jobs overseas by taking away tax breaks, something a big boss talked about this week. >> think about it. caterpillar escorted 20 billion dollars of goods to 2011 all by american hands and american workers, all over the world and in order to to that, we have to create jobs in all the countries that we export to to be able to sell there. why is caterpillar bad if we
create a new job in india or china, to receive u.s. exports? >> it makes no sense to me. >> we want to drag the exports we can from the united states and concentrate on the consumers outside, contractors, customers outside the u.s. that we possibly and we're going to need to create jobs over there to do that. >> and matt, was this plan actually cost us jobs here in america? >> i think it will. i think the problem the president has, he forgets we're in the midst of a global economy. and caterpillar, a large portion of sales from overseas and that's fine. what you have to do in this environment. what the president couldn't comprehend. you have to have employees overseas to continue the growth. and without them overseas, they're not bringing in the profits that they reported in the last quarter and the money that the companies are making, based in the u.s. and they're bringing it back and putting
it into plant machinery in the united states and create jobs here in the united states at the same time. >> ben, i think, not only are they bringing the money back, but pleading with the president to give us a break, we've got a trillion and a halfover overseas we'd love to bring back, but the point is you penalize the corporations, it doesn't help america get any jobs. >> it doesn't help any of the investments and they're the retirement plans of workers and the president has a fundamental confusion, he thinks investor means billionaire and someone with a silk top hat. investor means retirement work, working on the assembly line, behind the counter, the bank teller, all his other her life and those are the stock holders and they benefit if more jobs shipped overseas, allow more in america. and we want to have jobs in america and we want american retirees to pay their bills, too, so, that's the fundamental between healthy investors, which is pensioners or help the people who are
union boss sns. >> i've got to tell you, dagen, the rhetoric is higher and higher, and you hear it all the time and you hear it all the time. the president takes out the whooping sticks and the insourcing things he's talking about. you might buy them both, but some of the the best companies, makes them less competitive. he has to do something, the unemployment rate is still at 8 and a half percent and spending hasn't changed the eacquisition. . what are you going do do. talk tough and carrying the biggest stick. and the president wants a way back machine, wants to go way back to the 1950's and failed to acknowledge that as a growing developed nation, we're a nation as we were in ideas, in intellectual property and in creating things, not necessarily making them. and that's the grim reality people never admit. >> and dagen brings up a fantastic point. the president talks about the
wages, and for most workers, it's impossible in in day and age, and also in a global economy. >> that's a good point. and you know, i'm for closing the loophole, i don't think it will make much impact at all and people who think that the tax codes are what caused jobs to go overseas? are probably also the same people who think that baldness is caused by wearing your hat too tight. it's just-- >>, but we're not talking about the people. we're talking about the president of the united states. when cat the pillar released earnings. in was a letter, not to anyone else in the world, but to one person and when the ceo of caterpillar talked about free markets and free trade, he's begging the president, please don't go down it this road. >> and he doesn't need tax breaks to do the things he's doing, and caterpillar and apple and nike are going to keep moving the low skilled jobs over to tie chunk, and people are happy to do it for a buck an hour and what's important, they're keeping the good jobs, engineers, the managers, the directors, they're keeping those in illinois, oregon and
california where they as long and that's what we should be celebrating. >> the dirty secret. those jobs, we doesn't have enough people here that can do that, that's the sad thing. >> exactly right. >> and we have a million, maybe 2 million jobs, and signs, technology, engineering, math and going begging and more kids overseas are going to see the education and so we're stuck with the president's-- we're keeping the low paying jobs here at artificially high wages. >> and to further your point. and the president, as he said, the americans are not qualified for the jobs and you can push all you want, but i think he's barking up the wrong free. he should be educating the people in the work force, and retraining the people on the unemployment line for the jobs available in the united states. >> go ahead, ben. >> i'm sorry, dagen, it's questionable whether retraining works and i talk to business groups and they say
the number one problem is i finding skilled machinists and tool and die makers and those people are in short, short supply. >> we actually have a very skilled auto industry and you see output increasing from the foreign automakers because of the currency translation and the skilled flexible work force in this country and the president is not going to talk about with 8 1/2 unemployment. >> the letter i referenced today, is the illinois governor, but, i want to get back to you on this thing. you know, i've been saying all along, it feels like the president has been playing political chess, but economic chuckers and our economy is it just too fragile to keep it going? >> well, i don't know, we saw pretty positive report today. the growth in the last quarter, was pretty close to 3%. >> come on. >> i think you guys are all wishing that we had clinton's economy back and i understand why. >> and i take the reagan recovery, too though, i take the reagan recovery, too, 8,
9-- >> good. >> grosse pointe woods numbers, but again, the point is, if we're talking about the economy and do it by penalizing successful people, successful companies, i don't see how the equation adds up ben. >> gdp. you make it found like obama isn't talking about education and he emphasize. . i don't know how, but he'd like to see americans get more opportunity to get the high end training that ben was talking about earlier. >> final word to ben. >> it's interesting, the young americans, they have lots of middle age people to do the jobs. when they refitire, it's going to be a big, big problem. >> did you see this, apple making a billion dollars every week last quarter and president obama had steve jobs widow at the state of the union. those profits are good. but washington looking at the
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>> we're live from america's news headquarters, i'm jamie colby. divers found a 17th body today on the wrecked cruise ship off the coast of italy and italians say there are still people missing. they attempted to extract the fuel on the ship around 4200 people were on board when the costa concordia ran aground, rather, more than two weeks ago and there's also new outrage today over twitter's plan. users worldwide threatening to boycott after the decision to block or relove tweets in specific countries and critics
argue it's against free speech. and the protest in egypt and social networking played a roam. now back to cavuto on business, i'll see you 30 minutes away. >> oh, so, cute. such a-- >> did you see that, kermit? >> yes, i did. >> that's how you treat a lady. >> i know, i can't get up though, i'm permanently stuck here. now who else has been stuck in his seat. neil cavuto, he's going out on on fox business covering the g.o.p. primaries and he's back with the the best in the business, covering the florida primary results on tuesday night and the other financial network, they're going to be selling exercise equipment. he kicks it off at 7:55 p.m. eastern until it's over. now, let's do this one time for neil, guys. if you don't get fbn-- >> demand it. >> all right. what if i told that record low interest rates are bad for the
housing market? hear me out. they threatened to keep the rates near zero through 2014. been that low since 2008 and guess what? new home sales getting hammered every year since 2008. as long as they're staying in the basement, home sales be staying with nem them. >> the interest rates are low and mortgage rates are at or near historic lows and suddenly driving anybody to buy the home. by the the fed saying they are he' keeping the interest rates low for two years, scares me as an american and home owner that things are not getting better. they're concerned where the economy is going and if i believe that, and home prices are going to be lower two years from now, at the same time. mortgage rates may be lower at the same time. what was-- >> number one. >> mortgage rates aren't going to get any lower because you already have record low mortgage rates. >> from last year. >> no, i saw treasury rates would continue going down. that being said. the only thing it does, causing people to wait.
if they get the same mortgage rate a year from now, they'll wait. reverse that, they he can't say that higher interest rates will be good for the the housing market. because if they-- >> it tells us the economy is getting better and home prices are moving up and people rush in and wait until they see things start picking up. >> help us out here, it seems the feds say that rates aren't going anywhere, if i'm a would-be buyer, where is my sense of urgency? >> there's no sense of urgency, unless you have a home. if you want a home. today is an ideal time to get a home and completely counter intuitive and not correct. the low interest rates and home buying, we have low interest rates because there's low business activity. and flagged business activity. but we have another problem. banks won't lend. try getting a mortgage. it's incredibly, unbelievably difficult to get a mortgage out of a bank, they're very, very cautious and they make you jump through hoops and
make it very, very difficult it get the low interest rates and those are up there on the board, when you walk into the bank, and try getting one. >> i've got to say, ben, americans as consumers in general got very smart and we saw that over the christmas holiday. people knew exactly where to shop, and got the business deal possible. you think they could be sophisticated enough. i'm in the driver's seat and i want to own a people eventually and i don't have to go out tomorrow and do it? >> i think that's possible, i think what we're seeing is an outbreak of irrationality and patience. you talked about the low pace of home sales, that's a sign that people are happy to hang on to their homes, if they have to move. they're leasing them out. probably at a positive cash flow thanks to the low interest rates that we discussed and home sales activities is about where it was in the '90s and we had a healthy housing market. i'm sorry, we've got to wait this out and i think the low interest rates are not going
to lift housing. . i think that high interest rates are choking you to death. >> let me say something, there's no better investment. if you worry about inflation, then going out and borrowing money at a fixed rate for the long run and buying assets that will appreciate, what people have got to be thinking about. >> there's a tremendous psychological value in owning your own home and the difference between owning your own home and having a landlord push you around is night and day. >> and ben, if we own 32 of them like you do, a great psychological boost. >> it's not 32, but it's too many. but i think, i tell you what, we have to pay a little attention to the home owners in germany only 40% of people live in homes that they actually own and i recently came back from germany, a lovely place and i don't see graffiti everywhere and society falling in on i am itself. we could go with a lower rate and it will be fine. >> you he see it naturally and people are renting it. >> and a great psychological
point. that this is confidence. what we saw, nobody has confidence in the housing market and things are good a couple of years, until that confidence comes back. >> and because they're all-- >> and do you connect home ownership rates with graffiti on walls? that's a connection. >> we're all-- >> i think people do that. >> we're drunk during the housing market and no jello shots are going to get us to belly up to the bar. >> that's the perfect way to talk about the housing market. and up next, stick it fork in it because these two are done. heidi and seal. ♪ [ nadine ] buzzzz, bzzzz, bzzzz, bzzzz, you know, typical alarm clock. i am so glad to get rid of it. just to be able to wake up in the morning on your own.
>> we will not go back to an economy weakened by outsourcing and debt and phony financial problems and banks made huge bets with bonuses with other people's money. i will not go back where wall street is allowed to play by its own set of rules. >> if there's any doubt. and you say we're going to have to pay for it. >> we are, we're all going to pay because the more he cracks down the more the white house cracks down on finance and banking, the harder for us to get a loan. you only have one of dodd frank being written and the financial industry doesn't know what's in that. he was the big moneymaker from
real estate and insurance and took in 42 billion more than any other candidate and right now, mitt romney is the leader and the democrats are taking in one quarter of the money doled out by the industry and three quarters for republicans. >> three quarters of people on wall street say, this is too much. in fact, matt. on neil, leon cooper and barry sternwick legendary guys and they sort of said the same thing, that the rhetoric is too harass and got to tone it down. in fact, why don't you take a listen. >> i've wrote to the president and i was alarmed over his dialog, okay? that creating elements of class warfare, it's unnecessary. >> you talk about trust, and you think the nation's businesses and investors are sitting on their cash, because they don't trust the administration. >> well, i think that says it all. they don't trust this
administration. and we hear from everyone, not just wall street, but especially wall street. i mean, wasn't wall street the administration that really hammered them. more than any administration out there and what is hurt by, i think, more than big companies, i think the president really, when he speaks to the-- he wants the populous, and the big companies and he hurt the companies like you and i, and the smaller guys out there have to pay twice as much for regulation and compliance and that's one person i can hire to make sure the books are right. because the president thinks he's going after the big guy, but it's a populous view to go after wall street. >> ben, what do you think, you've seen different strategies and approaches and you're mixed sometimes when it comes to wall street. is the president right. >> they're playing by the rules, and not one indicted over the mortgage problems and wall street was playing by perfectly legal rules and the guy who was enforcing the rules on wall street was mr. geithner, who is now
mr. obama's secretary of the treasure and if anyone should be taken to the wood shed: and they're cultural liberals and in the final analysis he'll get plenty from wall street. i don't know why they're saying they're operating by their own rules. >> if anyone is taken out to the wood shed. it seems like people can't buy a house, only thing you can buy right now is a car and other than that money is the not flowing into the country. >> that's true. i don't know if you can blame that on obama's angry rhetoric over wall street. by the way, i don't think that they're happy with romney, embarrassed wall street with a 15% tax rate he paid on-- >> oh, give me a break, give me a break. >> let's talk about that. >> i 'm going to take you to the wood shed for changing the
subject. >> and the president's-- >> come on, come on, i think you've got to-- >> you guys are living in sort of a fantasy land, if you don't mind my saying, the president kissing wall street's butt is not going to make the economy better, i'm sorry, otherwise have a terrific economy and that's all it took. >> now what's scary, the housing market and the mortgage market is the federal government, fha and freddie and fannie and guess what, we're on the hook for it again. >> and i think it is and we've got to leave is there. and my thanks to dagen as usual, we appreciate it. >> up next, stocks to start 2012. and our gang says they have it for the rest of the year. total access - to everything. from idea to research to trade. including financials, indicators and real-time streaming quotes. whether you check your investments every day or every minute, our app can take them from thought to trade. at scottrade, seven-dollar trades are just the start.
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is the next big thing in the next few years. >> you like that one. >> not too small. $117 stock is going to lose money this year. >> what do you like? >> intele. they will sell the chips to the cloud computing companies. len times earnings. and utily for the 21st century. and you like intele. >> it is a well known company . and i don't think anybody should be without it unless you are buying intexes. you should not be without intele. >> what do you like? >> as usual. berkshire hath away. they are a bargain and still have the smartest guy in the world running the company. it was hampered last year and doing better lately. when the business picks up it will do well. >> mat, you like this one. >> i