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tv   Forbes on FOX  FOX Business  February 10, 2013 9:00am-9:30am EST

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>> charles: just in time for valentine's day, suite heart stocks for sweet profits. what do you have. >> american express, if you saw my bill you would understand why. it's the type of value play that is really working well. broke out great this week. >> charles: you like that one? >> i do but i find it concerning that americans use their credit card less. >> charles: what do you like? >> vanguard dividend paying,
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dividend payers have been a star recently as companies give cash back that will continue. >> charles: what else do you have for us? >> i like the israel etf. israel with all the threats and all the dangers is booming, the economy is tech center of the whole world. i like that i believe jews are capable people. >> charles: i love those israeli companies. guys this is was a fun show. everyone, thanks for watching. forbes on fox is next. here is dave asmun. >> forget gridlock in washington. hitting us in our wallets. we are being hitting by real gridlock on the road.
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>> dave: a new report showing the average driver stuck in traffic is wasting a whopping $1880 a year. how do they want to fix it? with billions more with infrastructure spending wosmt it work or only be a waste of time. welcome to forbes on fox. let's go with steve forbes and our panel. we got a full house today. steve, you say slam the brakes on ts plan, why? >> because government involved is going to be a waste. you look at other infrastructure fed ex and ups and railroads got out the way, great infrastructure, let's have the private equity involved, public-partnerships private partnerships and you get more for less. you get bloated wages and more bang for the buck by bringing in free market. >> dave: what is wrong with the free market taking the place of
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government boondoggles? >> for one thing it is not happening quickly enough. we have a serious problem that all of us should agree to. there are certain things like roadways that you cannot give a monopoly to a private company. >> dave: it's a public monopoly? >> don't you feel better with all of us own the government having control over the roadway than one private company. >> dave: i've seen so many of those public projects with guys sitting around. they take five times as long as private project. rick has a point on infrastructure. it is crumbling. listen to what ray lahood pitched this infrastructure plan. >> i don't think you would be turning off people in america because they know america is one big pothole right now. >> dave: there are a lot of potholes? >> i agree.
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what happened with the last infrastructure spending in the surplus spend. guess how much highways got? a big, fat zero. in new jersey it was sent on highway ramps to nowhere. >> dave: there are road to nowheres in new hampshire. >> that one ended up in a concrete wall. the scan village, population less than 200, they got a $15 million airport. why not newark or las vegas. it's a big pork barrel project where the states spend the money and they get to a monopoly on this money. >> dave: i am thinking of the big dig in boston and terribly corrupt. scheduled for $2 billion and ended up costing $15 billion. new york has a second avenue
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subway system they have been building for 40 years. do we need more of this? >> we don't necessarily need more of this. going a back to steve's point, public private partnership, it takes a certain amount of money and spending from the government actually i think we need to be spending money on infrastructure maybe more smart than the examples. if you look at infrastructure spending when it is done correctly it gives you a bang for a buck. it can create economic and job growth. countless studies a recent one from the san francisco federal reserve that show this. down the road you see less air pollution and less health care. >> dave: so many times you see delays on projects and corruption where local contractors try to get as much as they can out of the government. is that ever going to change? >> no, it's not going to change. when rick unger says we have an
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emergency, i worry about my taxes going up. if we want better roads and less traffic it is easy. bid it on these road building to private motivated entities. you will see innovation and prices for the times that you drive those roads. it's through market forces, don't hand it to the government. >> dave: rich, we had an ice rink in central park. it's a beautiful place. the city government was working on it for years and cost overruns and finally donald trump stepped in and said, hey, look, give it to me i'll do it in six months at half the cost. he did it even faster than that. doesn't steve have a point that private sector should be linda in author these things? >> steve makes a great point. i understand rick's impulse here. if you go back to the 1930s, a
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lot of public works projects were accomplished and did pretty well. you have things like the golden gate bridge four years. now it takes seven years to build an access road to the golden gate bridge. we have extraordinary stopping power from environmental groups, public work unions have slowed down everything. it just doesn't work like liberals want it to work anymore. we have to do a private mechanism. >> dave: let me throw a bone in rick's direction. we have an incredible highway system in the united states. that was done in the 1950s. can't we replicate that when it comes to bridges? >> if we couldn't do it under president obama in 2009 when they were spending hundreds of billions of dollars, the answer is no. the regulatory morass is insurmountable and politics play a role. we waste hundreds of billions of
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dollars on mass transit. it has a role in certain parts of the country but tens of billions that could have been used for real infrastructure. >> dave: so there may have been a time when massive projects, there is too many regs to make it efficient. >> i don't see the private market stepping up to do the job. wait a minute, this country is turning into a third world nation. our infrastructure is truly crumbling. >> they are using private contractors and there are questions at that level. we have an oil and gas boom. our infrastructure at that level is poor. there is a bottleneck at the refineries. we're going to need more than pipelines to make that part of the economy. >> dave: rick has a point when he goes after monopolies but the worst is the government. all the private sector competition and that leads to corruption, no? >> i think you can point to
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that, but you can point to positive examples where infrastructure spending has done good. salt lake city is a good example. and also one of the strongest job rate growths. the transportation has a direct link to that. >> utah is low tax republican state. come on. >> it is. >> new york and san francisco and chicago with the corruption and the public employee unions, forget it. >> dave: how many of these light rail programs to fuel efficiency very few, right? >> i come from southern california and they are never used at all. when we talk about infrastructure, yes, we have an impressive national highway system, but the unseen is how much more cheaply it would be built today if we left this to private profit motivated
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>> i was hoping you could get a flight from miami to new york tonight. >> to new york, it's coming in tonight. >> i'm trying to get a flight tonight for tonight to miami. >> dave: not just the fashion istas, making work calls hours offer after clocking out. chicago police want overtime pay for that. if they win this case could reverberate nationwide as other workers look to do the same thing. rich you say no way to extra pay why not? >> it's just ridiculous. in a 24/7 world wo people would have that kind of complaint. it comes with the job with every other kind of job. in the private sector, if you ask for a raise or in this case overtime, you should do your
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fundamental job and chicago that leading the country in the murder rate, 700 murders on track for this year and they have the gall to ask for money for emails? >> dave: i don't think you agree? >> i more or less do. i don't care how this case goes. it will be fun to watch but i think it will be interesting. do the police department, do they want their emails vetted in court. that will be interesting. i agree with rich in the private sector, you work overtime and you do extra work in the hope that in the future, you are going to be rewarded whereas unions are focused on doing less and getting paid more. i find that contrast very evident. >> dave: you have a lot of family members in public service firemen, but you are not sympathetic on this one? >> for a legal matter, written
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contract and written policy says if i want overtime you have to ask for it. case closed. though should ask for it basically right on the job. so the fact that they are suing to get it is confusing. these are the guys -- listen i have a lot of friends in law enforcement. maybe the guys should pay back for all the donut breaks they take. we know there is a lot of abuse in the system where basically file for disability right before retirement to double barrel the money they can get in retirement >> dave: let's expand this a little bit. we don't want to focus on one community here because there are a lot of people complaining that workers are asking for extra pay for stuff that used to be considered that. the wonderful superbowl ad and first 40 hours before the end of tuesday night. that used to be the work ethic we were used to here? >> yeah, i love that commercial, but i saw myself asking the
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question paul harvey would have said the same thing if he had seen today's agriculture. billions in government subsidies and all that. every generation, when i was a kid i worked hard. people work hard. we work harder in america than any industrialized nation. >> dave: we do and there are still a lot of those farmers and lots of people are putting in extra time. steve, i think back to the doctors who used to be on call all the time. it's pretty hard, but it's hard to get a doctor on call. nowadays, everybody wants extra money? >> you can see what it did to education where teachers did struck go down the blackboard after work and -- scrubbing down the blackboard after work. how about focusing on the job itself and people would gladly
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pay you more if they were getting value. >> dave: adjudicate we pay more or not? >> i am all for paying overtime as long as the same employees get under time on the job. if you take an email, you get docked. you order pizza you get docked. you have facebook, you get dock. i think facebook could be worth $300 billion a year. [ laughter ] >> dave: always with a little side pocket. why is eric bolling at the post office? find out what she delivering and how it could save billions to taxpayers. and another multibillion dollar bailout may be coming for the mortgage industry. mortgage industry. is it time to get government t
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>>. >> dave: deja-vu, a report that shows housing administration mortgages made by private lenders facing a whopping $6.3 billion shortfall and housing experts are warning that a taxpayer bailout is imminent. you say it's time to get washington out of this? >> why is it not called theft when the federal government takes my hard-earned dollars. i don't own a house and gives it someone else that wants to own
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someone. if i rob my neighbor the police will put me in jail but not seen as theft or crime when people will vote for politicians that will take from me so people can own houses. >> dave: it's not like the programs are smashing success. every time when the government gets into these programs, it seems to be a failure? >> you can argue that pointed with the more recent programs. i hate to be the bearer of bad news. if you want to take uncle sam mortgage industry. between fannie mae and freddie mac and fha those three entities underwry all of the home loans. as long as the americans want a 30-year fixed you are going to have uncle sam in the picture. >> dave: that means a disaster on s on the way. fha insured about 740,000 loans that were in foreclosure, about
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10% of the one trillion dollars of the mortgages may be in trouble? >> that may be an understatement. the government will throw them out of business because the government guarantees of fannie and freddie and fha, government is not around we don't have a market. privatize them and break it up you will get a private market and in terms of government, governments hurt the housing market. we have dozen countries that have higher ownership than we do. >> dave: when the government tries to fix the mortgages it fails 40% of those mortgages that have been reconstructed are now in foreclosure again? >> you are probably right. i think john is too hard on some of these government insurances. don't end them. let's put a $50,000 cap on things like mortgage insurance.
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let's put a cap on deposit insurance. $50,000 cap on crop insurance. >> i'm for a simpler approach. steve makes it simple, take it out of the hands of the government. it s it too late to do that? >> this was doomed to fail for a long time because fha loans typically require a lower down payment than non-fha loans, so the lenders are giving loans to people that are going to default and be repaid by taxpayers. this is scheme by federal government to redistribute wealth from higher earning people that pay higher taxes to lower income people. that is all the is. >> dave: one of problems is we have so many federal agencies involved. we nationalize fannie and freddie. as i mentioned all these programs that the treasury
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department started. how do you untangle the bureaucracy? >> you let them expire and privatize fannie and freddie and hfa and -- fha. politicians will raise it that is what you see with deposit insurance. you have to get them out, period. >> dave: if that happens, will there be people whose loans are in the process of modification who are kind of stuck in the middle, who fall in the middle? >> i think this whole process, it would have to take years and years to happen. what worries me probably the most as far as fha is concerned, what it does to first time home buyers that has been a huge part of this market. so i do think we should look like 3 1/2% down payment but there is place. >> dave: you get the last word. already, we told you cold, hard
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