tv Bulls Bears FOX Business January 5, 2019 11:00am-12:00pm EST
i'll see you next week. [ woman vocalizing ] >> david: wall street cheering and i trifecta of good news with the dow jones sword and the best performance with a jones report in 16 years. high, everybody "bulls & bears" and glad you can join us david asman joining me on the panel, gary b smith, kevin kelly and jack. stocks getting a big dynamite job report this morning, blowing away expectations, but then when stratospheric after the fed chair strongly suggested great heights would be hold on for a while. there was confirmation that there will be a meeting between
u.s. and china trade reps on monday. the president celebrating these market movers at the white house this afternoon. >> 312,000 jobs was a tremendous number. and obviously, having an impact on the stock market. the economy is very good and remember that from the time of my election, the stock market has gone up very close to 30%. and that is with all of the things that are happening and there are a lot of things happening. we have a massive trade negotiation going on with china, president chee involved and so am i. we are dealing at the highest level so we are doing very well. >> david: there are a lot of if's here but if we get a deal with china and if the fed puts great heights on pause, how high will these markets go, again, what do you think? >> i tell you what, david, i think we could actually go back to the old eyes. we have just come at the price
action today was incredible. incredibly bad if you are embarrassed, but the two biggest stumbling blocks and we have a lot of them from brexit to the molar investigation and the government shut down but the two biggest i think everyone would agree, the fed and china we heard good words from powell on the fed and an interview with the cleveland fed president. she was a little bit dovish this morning. and of course, if china happens, you have two huge hurdles. i think the market could work back to all highs. >> david: the market if the economy wasn't going well right now, it wouldn't really matter so much the trade talks with china, but what we saw was job numbers. i think was really encouraging. and how is it encouraging to investors going forward? given that a couple of other worries on the horizon if we see progress on the trade. >> if you already have comforting words they are from
the feds so how big will we ris, single digits, maybe 10% in the coming year. >> i think the jobs report could not be overstated. i mean it was not just better than expected but wildly better than expected and followed on the heels have nfib small business group report that also suggested that hiring was continuing. so i don't think we will see in january all that good momentum went away. also, what i was most encouraged about was unemployment rate went up. what does that mean? that means a lot of people coming off of the sidelines. that is what this country needs. we need all of people who have not been employed to come back in the labor force. that is happening. we talked about that happening and how it's actually in the numbers. >> i think it is important to note we are talking a day where we get good numbers the market rebound but yesterday it was designated off of weak pmi numbers. the worst situation is, we are looking back at jobs numbers before shutdown. listen, there was great holiday
season too but before that, but the problem is the new orders index is forward-looking indicator. that was actually pretty bad. it almost touched, flatlined, on the expansionary scale. so my situation is this:the fed got vindicated with the job numbers and the wages, the wages number was up better than expected right at 3.2% when it was expected to be 3%. that is great. and so the feds hike in december vindicated it. what is going to happen, we will have seasonably weak first quarter gdp next quarter gdp expected to decrease from the 4.2 pc -- ford .2% to 4.7% and that is where the rubber will ht the road and we will see what wn with this economy due to fiscal. >> david: kevin, that is great stuff but one thing i love about what happened with the jobs
number today, it also killed this notion that the economy is on a sugar high. sugar high the government hands out cash with the obama administration and gw bush did that come up with these changes to the trump economy deregulation, tax cuts are here to stay. companies continuing to perform very well. >> and they are giving some of the money back. >> kevin: david, here is the thing i want to build on something seasonally adjusted be he's absolutely right. and i think it's all the jobs numbers i came in seasonably adjusted, not seasonably adjust about the progress numbers adjusted upwards. so the economy even looking back was stronger going forward. i think the other thing to remember is, people saw the apple stuff, oh, my gosh, china, china, china. we might talk about that later but the thing to remember this economy has great bones to it. liz alluded to it, jack alluded to it. this economy is in good shape.
people tend to diminish that we see all the blocks and hurdles in front of it. >> david: you say we've done away with the notion of a sugar high. i will go along with that but some people will look and say, this is trump faith healing of the economy. some say will be obama and expansion. and i think this will go on but what remains to be seen, this big tax cut we had to. when you borrow a trillion and a half dollars at the top of an expansion when you should be paying down some of your dad, do we get our money's worth? >> david: the tax revenues at an all-time high, jack. it's not likely added to the deficit, the tax cuts help economic growth -- that raised incomes tax at an all-time high. >> the population grows and the economy expands but i don't know yet. that will pay with themselves, >> david: they already have. >> it was a pretty big step down
in tax rates so i think that overcomes the inevitability of higher tax revenues but the answer is there will be an argument not only about whether the growth will continue but also about what corporations are doing with the money they got from the tax cuts. this will be a big tax talk ths year with antibusiness measures that they are interested in passing. one of the things, the dividends were up substantially last year. particularly the fourth quarter. that is helpful to people. people, retirees and so forth, cash in their pocket. so not all share buybacks but interesting to see what corporate investment looks like in the fourth quarter and going forward. >> david: i'm going to disagree with something jack said. jack alluded or made the inference that this is some collective pool of money that is out there. we have to decide, oh, can the government spend it better or private? what is the biggest bang for the buck? check come i totally disagree with that.
people are in the money, corporations are on the money and it should be the governments job to keep as little of that money as possible. so from a hold on one second so the real argument should be can the government skinny down and i agree we have not had that talk about skinning down the government. the bang for the buck i hit that argument. >> jack: this is not a pile of money we collected from but flat out borrowing and we are going back to trillion dollar deficit. >> we let more of the people have their money and with good use of it. >> jack: they will pay it back with interest, trillion dollar deficit at the top of economic expansion. i'm just saying that is not normally the way we do things. >> the administration -- >> we should cut down on government spending so the people can keep more of their money. bingo. they are previous administration, there was secular stagnation, and that was, there was no hopes we could grow 3%, 4% gdp and guess what happened. sound fiscal policy took hold
and we so that we can print 4% gdp numbers on a quarterly basis. that is the most important thing to take away from this administration. regardless of the house going democratic, as long as we continue to deploy the policies right now, deregulation as well as the tax cuts, i think we are starting to see the play out in the economy and the members. >> david: the other thing that came out of the jobs reports, wages. terrific news, it doesn't look like that big of a bump but more than expected. employment 1% higher than expected. it is good news when people are making more money. that is why the president and a lot of other people got so fed up with the fed suggesting that, oh, bad wages go up too much because that increases inflation, no, not necessarily. you don't hurt the economy because america got a raise, do you? >> no, by the way inflation is zilch in the fourth quarter.
the truth is the real increase in wages is going to be very substantial. i think we should talk about chairman powell because as you said, and accelerant on the market rises today. common. and i would just say, it seems to me people are being, you know this person of every word is idiotic because what he said today, what he said before. they will look at the data, just as janet yellen did during her tenure and they will be flexible. that came as great news at the end of the day -- >> i know. i actually out for the production they will not raise rates this year. but then you are sort of betting on a bad economy so i don't know. >> i am interested on checks take. >> david: i want to go back to the point of inflation because it is a good one. liz said there is none out there. i absolutely agree. you look at apple for example, apple can no longer afford to raise prices. they have these expensive phones out there.
china, for example, the main undercut by these cheap phones. my gosh, if apple can't raise prices out there, who can? >> so getting back to the fed to come i'm interested to get jack's take on this because chairman powell was talking about the balance sheet and how they actually may stop or hold some of their bond buying programs. we have seen the effects it is taking in the short end of the curb, right? people once in a to sit on to your cash and not tenure cash. jack, what was your take on his comments when it came to the balance sheet? >> jack: look come i think he's making the right to move on taking this conservative approach to rates right now. my concern is, we do have to thread the needle a little bit going forward. when we talk about the economy going gangbusters come at some point, the economy goes so gangbusters you talk about raising rates again. really, we haven't on through this experience before we have come off of zero. we have raised rates, but when investors have been stalled so
long zero two may be at some point, we want to be looking at the 10-year treasury pushing 4%. why in the mid-twos come i don't know, reason enough for concern right they are. when you get to three and half, pushing 4% on these rates, i wonder whether russia will take money off of the table. speed to the mxp when we haven't come up zero interest rates, but we have had much stronger growth rate then we have now and seen inflation come down. that is why mr. powell has a backward view thinking it is inevitable that you will have hiring flesh -- inflation and stronger growth 7.4% growth in 1984 and inflation was coming down dramatically. so you can have strong growth and lower inflation. but the problem with the fed comeau worried about inflation so if you consistently look at their minutes or listen to their speech, they are worried about asset bubbles. the bottom program financially suppressed volatility in the marketplace.
so what happens? equal and opposite reaction. we have increased volatility and trade above 20 on the vix. that is what is happening in the marketplace. >> david: thank you very much come a matter of national security despite acknowledging productive meeting with democrat leaders. president trump says he has prepared for the shutdown to carry on for months, possibly years if a deal can't be reached on the border wall. how close both sides cotton? a live report from capitol hill in moments i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?
successful meeting with democrats today. they kind of hinted at that the democrats but you warrant the end can be a while away. listen. >> the shutdown could go on for months or even a year or longer. did you say that in is that you're -- >> i did come i did, sir, absolutely said that. i am prepared. >> david: wow, christina shut -- following the shutdown and wrangling, that is incredible at the president owning not only the shutdown but suggesting to go a year or more? >> it is funny because i saw the viewers already responding to previous report saying hey, no big deal only a partial shutdown but yes, it is a big deal. it is affecting 8,000 people and all the tourists that come to washington. but the latest argument that is going on right now or debate is whether the president can declare a national emergency in order to fund this wall. the issue with that, they are looking at the funding that is within the department of homeland security. can they take that money and
reallocated to a wall? it is a transfer unconstitutional because you need house and senate appropriations to say yes to it. but if they find money within the military construction budget, there could be an avenue to build the wall. that whole area is murky at the moment but nonetheless, lawmakers on capitol hill obviously working hard to overcoming the shutdown impact. earlier today, you had nancy pelosi saying yes, she is willing to negotiate but she needs to open up government first, listen in. >> we all recognize, we recognize, the democratic side that we cannot really resolve this until we open up government. we have made that very clear to the president. >> you see, you have nancy pelosi saying open to border security, but then republican kevin brady saying in order to have open security, you need a wall. listen in.
>> i know the democrats are hung up calling it a wall but i don't care if they call it gender neutral palisade or a linear monument to climate change. in truth, we need more resources for border security. >> congress set to adjourn only on tuesday which means the government shutdown partial shutdown could continue all the way until wednesday which would make it 18 days. pretty much the second-longest that we are talking about a partial shutdown? >> christina, liz, there is a group meeting over the weekend. and no one is really talking very much about that, but tell us about the people who are in that room. i know it is kushner and who else from the white house? >> you have, there is a huge list and i'm sorry don't have all the names because i'm focusing on the lawmakers here, but the problem is we are not getting a lot of details from who is a part of this working group. they are sent to me on saturday. there is not everybody involved.
i know chuck schumer has not given details as to what this working group really needs. that is the confusing part. so i don't have all the details for you. >> second question for you in the press conference is dock on the table as sort of not a bargaining chip but as something that could also be resolved in the president didn't seem to want to go there but what is your sense about whether that is part of the conversation? >> it is part of the conversation according to democrats here, especially of considering nancy pelosi because she is getting a lot of air time right now. she has said adamantly the past 24 hours and i've been listening to her interviews, walking around here doing 60 minutes, cbs and all that stuff, no money will go to at this wall. however, the talk of daca comes up quite a bit. what will you do with these immigrants and the united states already? it seems that can be a bargaining chip but too soon to say because she so adamant about not even a dollar going to the wall. >> david: one of the biggest issues i have with this partial
shutdown is it is actually impeding the free markets that we actually have learned that the sec will furlough workers who are going to be having registration statements go effective for a lot of ipos, technology companies. so i'm actually curious to see if gary b things will impact the market and could take a toll on some potential returns going forward given the fact they are not going to have corporate -- capital markets flowing. >> i tell you what, kevin i was not aware of that so that's a good find on the sec step but will it affect the market? i don't think so. even the sec being involved, but it is just a small part of business growth these days. i mean, at the margins, yeah, but you know what i think people inoculated to a government shutdown right now. i will flip over to christina. what is the move washington is there a sense of urgency or a
sense on both sides, well, we will wait it out to see what the other side and if the other side cracks? >> that is a good question because i thought about it this morning i live in new york city and in d.c. the city is incredibly clean still to this moment. you have tourist upset that can't go to museums however i went to the museum today and ity has gone there and the only museum that is open because you have to pay to get in. the mood seems to be that people are still going about their day as if not a federal worker. it is not really affecting them just yet. there is a lot of talk how it can affect various departments. think the travel department and think the airport, can't get ebay or a fight and you will see the employees go lower if the morale because forced to work without pay. and i know everybody brings up national parks and toilets blocked and all that but it will start to affect the morale not only here but a lot of government workers across the country. i don't think we can discount
that. >> david: can anyone explain to me, why are democrats so dug in on this issue? i get why the president is dug in, he had them cheering, the crowd cheering build a wall. you are blue in the face, mr. president most people here illegally flew in on tourist visas and overstayed their welcome and a wall will not fix the problem, doesn't matter. he had the crowd cheering and he wants the wall, i get that. the democrat has not voiced a moral objection. and if they squander it, $5 billion which is relatively small in the scheme of the u.s. budget, why are they so dug in and they can't find room to compromise for something they want? >> i think it is a good question. it is interesting part for the court for the democrats. you remember not a single democrat voting for the tax cut that went through that made american businesses competitive on a global scale. we had one of the highest tax rates in the world. it was cheaper for ford company to invest in the united states that american companies to invest in the united states. jack come i don't understand why
you are surprised were trying to figure out where the democrats are coming from. this is political bluster from them. >> jack: one of the things that is happening frankly for the democrats, they have to deal with reality. the reality a share of california shot by illegal immigrant. they reality is there are terrace coming across the border. i know jack you want to believe people fly and but a lot of people walk over the border. they need to be stopped. i think they are arguing for the constituents but on the other hand, christina i wonder if you sense movement from democrats at all. some people are saying if nancy pelosi gives an inch to the present on this, she will get hit back hard by the left-wing of the parties. changing it all. speed >> christina: she will get hit back hard because they have been vocal about it but to kevins point about why are they making, no moral argument. if you think how the party as i hold the democratic party as a whole trying to place themselves
as being more physically responsible, so complaint so far of the g.o.p. spending so much o i feel like it is a shift in a t you have the democrats saying we need more fiscally responsible hints that the fact the democrats trying to pay-as-you-go, pay-as-you-go program for every bit of spending you have to have the opposite effect in terms of cuts or anything. so i feel that is the democratic party showing, hey, look we can be fiscally responsible and more so than the republicans. >> david: christina, thank you very much, good stuff appreciated. the president with apple setbacks and what he says could have saved the company billions. that is next.
(sfx: stage doors opening) i thought he was with you? no jack! (sfx: piano plays "twinkle twinkle little star" tommy? (sfx: audience laughing) go get him! don't stop. keep playing. (sfx: pianist playing masterful duet) here we go here's the fun part did you do this? great job! (sfx: audience applause)
>> david: apple makes a product in china. i told tim cook who is a friend of mine who i like a lot, make your product in the united states. build those big beautiful plants that goes on for miles it seems. build those plants in the united states. i like that even better. apple makes its products in china. china is the biggest beneficiary of apple, more than is. >> squarely on tim cook's shoulders today, and in fact, cook admitted in his investor later earlier this week, he did not proceed the magnitude of the economic deceleration particularly in greater china so tim click to blame for apple's decline or is it the result of a
trade war? what do you think. >> it is neither one. the cycle for smartphone, you don't need one every couple of years. i got a couple of new iphones recently myself, my wife and i would love to tell you they change my life. there is no difference. my other phone three years old and no difference. you can wait. the next big upgrade cycle 5g but until then this phone is expensive. the president might would wish some day he would open a company called trump smartphones. we could see him put his wisdom into action like he did with trump university at the trump casinos. something tells me tim cook is the right guy to decide how to allocate capital in that business right now. >> you know, basically i think it's tim cook's fault not because of china, not because of the iphones, but because the failure to innovate. listen, the biggest issue they are having here, they are relying on one product and we have heard about an apple core, apple tv could possibly, may be
new earbuds. we haven't seen anything move the needle, listen, didn't come out with ipad, iphone but i need to see innovation from his company to see revenue grow. china is this scapegoat here. and that is where it lies. before i think that is actually, sorry, i think that is actually pretty accurate. there are new products for the services business touted as the future of the company but the problem i have with that, those are not proprietary businesses and nothing like the ending position they have in phones and ipads and so forth. so i think that is a much harder place to gain those big margins. when apple made the decision to increase revenues to price increases, huge problem. >> david: i'm going to disagree there were little with kevin. first of all, if you president's remarks, the phones are not manufactured in china. the phones are assembled in china. the manufacturing for an
iphone comes from about 40 different countries. corning right here in the u.s. makes the class that covers the iphone. the chips are made all over the world. so that is kind of a silly argument to be honest with you. second of all, back to kevin's point, blames it on cook. here, the blame on cook is acknowledging in public even if he knew it, that he was not aware that china had such a big impact. he put in if you know that as ceo, you don't say stuff like that. third, the failure to innovate, yeah, i sort of agree and one part, but you're as wary disagree, kevin. a company that is built its life on these products. just like ibm did in the 60s, a big mainframe company. it is very, very difficult to take the cash cow and simply say, we will infest other resources and other places. i think apple has tried to do that and transition to a services company.
but it is very difficult and they are being nibbled out with just like ibm was on the mainframes, nibbled at by cheaper iphones. heck, david as we discover the other day still has an iphone 1. [laughter] >> david: it's only about eight to were three. but there is one point and this is to your second point, gary. the fact is the ceo of a company supposed to be ahead of the market and supposed to have proprietary information about what is happening sales of the company all around the world. it seem like tim cook was behind the market here. and to admit that he didn't know, that he was surprised that there was as much slow down in china as there was, he should be ahead of the market. in fact, the market saw this coming but tim cook didn't. >> liz: by the way it seems like in november, he was given pretty good reports on what chinese sales look like. i don't know what happened they are, but there was some major disconnect in terms of
information. >> apple will live to fight another day. the reason is, because, really sticky and going nowhere. like those phones come i have eight years with my kids pictures with apple somewhere. i will not switch to another manufacturer and eventually the customers upgrade. even david -- >> david: you can buy mine for cheap right now. [laughter] >> just so you know it is important to note it is a utility company, 80% of operating systems on mobile devices are android and apple 20% of those and refused to compromise margins. they increase the price of their phones. guess what, price is going the complete opposite way. about the number for producer in china trying to get more march and share their why? china will have 400 million people in the middle class by 2020. >> david: when you have many of people caring around iphone d upgrade a million dollars.
high as 60 or 70%. that doesn't mean all $2 million are taxed at extremely high rate, but it means as you climb up this ladder, you should be contributing more. the only has ever been radical for the change of this country. abraham lincoln made the radical decision in emancipation proclamation and franklin delano roosevelt made the radical decision to embarked on establishing programs like social security. that is radical. >> do you call yourself a radical? >> if that is what radical means, call me a radical. >> david: john kennedy made radical decision to cut rates. alexandria cortez, detailing just how she plans to pay for her multitrillion dollar environmental economic agenda known as the green new deal by increasing the top federal tax rate to 70%. so what do you think that would due to the economy? >> david to come in a word it
would kill it. but i will get back to that. a few takeaways i solve the whole interview. this is a woman not to be trifled with. she has a ton of charisma. the republican party better find an answer. someone that knows social media is young, attractive, energetic. now -- ♪ >> as per the message, she's talking about tax rates back 40, 50 years ago when a ton of loopholes. people could get by with paying 65% tax because effectively still only pay 25%. but the bottom line in getting back to my point, will it kill the economy? yes. people want to earn more money and they want to be very, very wealthy and they want the fruits for those rewards to say, you know what, you work hard but at the end we will take away most of your money. there goes the incentive to innovate and there goes the bill gates of the world
et cetera, et cetera. >> by the way this has been tried in numerous countries particularly europe. what happens you put extremely high tax rate tippy top earners whatever that means and they go to another country. that is a very obvious outcome. but what i think is interesting, she wants to use these monies to pay for the green revolution that she is behind it. and i think that is because she is beginning to find out that the green revolution using more and more green energy is a tremendous tax on the american people generally or would be an american text but also, in particular on those who pay more of their income out for energy and heat and so forth which is low income americans. >> david: why is this woman such a fascination among republicans? >> because she says stuff like this. >> david: she has been in congress for 5 minutes. she is the junior of the people there and here she is talking with anderson cooper and the whole country talking about her so obviously she has enthusiasm. you talk about her being way, way forward to the left but let
me tell you something on some issues she's not so far left from ordinary middle of the country. most people out there want something to be done about health care taxes, and most people want a higher minimum wage. >> do you think most people are socialist in america? >> david: i don't think most people are socialist but most people are hurting and want a square or deal than they are getting now. i and i will be the first one to tell you, 70% is not the number you lead off with. that is not the right number on taxes. >> can i answer jack's question why republicans occupied with her, republicans a similar situation that the democrats have with trump syndrome, -- they know that if this is implemented it would kill the economy and do terrible things and they are fascinated by it. she can implement 100% taxes and it wouldn't pay for these programs. the truth of the matter, she
knows this would never happen. she says these things and gets tons of followers, tons of press and we gobble it up but this would never be implemented. >> david: not only that, so anti, the most liberal of democrats like john f. kennedy who is the biggest tax cutters. i will quote john f. kennedy, gary i know you will love this, the soundest way to raise revenue is to cut tax rates. that is john f. kennedy. i wonder if she knows that background of him. >> liz: no. >> gary: i totally agree, but your is my point. she is very much like jfk. jfk was a very young president. i don't recall, he might be the youngest ever. he was photogenic. he had energy. he was good-looking. this has all the things in the package here. the problem is, i go back to my point. the republican party does not have an easy counter to that argument is when she said, we want the wealthy to pay more if their fair share of taxes.
the easy counter of the outcome of the top 1% pay 40% of the federal income taxes. they were is your counter argument. it is simple, no one is saying that energy on the right. >> you were talking about loopholes but a complicated tax, 74,000 pages printed by the irs. there will be loopholes. the rich won't pay that. it is a matter of fact. either they will find loopholes or to what liz said and leave the country talking about climbing the ladder. people will stop climbing the ladder. >> david: the one thing we did not accomplish with the tax cuts is simplification. it was promised and really there was no follow-through on that. more credence to what she said, again, great discussion thank you very much. 200-year-old restaurant in boston survive wars, depression but could not survive the big hike in the minimum wage. we will tell you more about that coming up next i am a family man.
>> david: durgin-park a boston restaurant started in 1827. it is closing now and the owner is blaming the state of massachusetts. the owner citing recently passed $15 minimum wage played a major role in the shutting down of the institution. so will more business as close as more states hike the minimum wages here? what do you think? >> i think the answer is yes, cortez, we talked about her, listen the restaurant she used to work out here in the bronx closed because of the minimum wage. so maybe she can figure that conundrum. but i think it is more to note that as a small business owner, not only do you pay people's wages but a lot of benefits. there is a lot of costs going up for employers, not just the
minimum wage. >> nice job working in oac. [laughter] look, businesses have the restaurant down 30% in the last five years. this is not the minimum wage. people don't want to go for big fred flintstone cut the beef and it's not bringing in the customer. minimum wage this year $11 in boston to $12. if you own a business and can't pay your workers $11 an hour, i'm not sure you have a profitable enterprise to begin with. what happens, people pay these low wages, $8 an hour, something crazy like that, their workers go right over to jackson uh, they start reaching into the hands into my pocket for federal tax dollars to pop up their wages. why should i pay the payroll build which mark these companies can pay it. >> mxp for this is a serious problem in our country that people who work hard full-time t always make enough to feed their family and republicans are talking about democrats are talking about.
i don't think personally of federal minimum wage go up gigantic lay which democrats have talked about makes any sense at all. every reason region has different cost and should not have the same minimum wage. i agree with you durgin-park is a place we all went to, we all loved it and it is probably a little tired would be my guess. but having said that, i think the states where you have jumps in minimum wage, it does force people out of business no question about it. >> david: it absolutely does. i disagree with jack though in one regard about the restaurants in particular are not being able to afford it if they are not a profitable business. restaurant business is a brutal, low margin business. it is not just the minimum wage they are paying for. oftentimes, health care, employees not showing up, it is efficiency in the restaurant, there is a whole list of things that go along with it. will restaurants and other businesses go out of business
because of it? yes, or nothing will happen. in my local sam's in vero beach, last year about twice as many cashiers as there was this year. the reason? it is all automated check out now. i tell you what, i see no one complaining they stamp their stuff, pay with a credit card and march on out. >> jack: the other part to make and check i don't know if you worked as a waiter, i worked as a waiter flintstone meet restaurants and you don't make your money from the wage. you make your money from the tips. it is the tips and frankly i was making a lot more than most people making minimum wage even though my actual wage was below that. so there are alternatives. not all jobs provide tips. some of those may be like liz said deserve tips. they said i was not handsome enough. good for you. not surprised that david gave great customer service and got good tips. >> david: thank you, guys we
will leave it at that. more first-time home buyers journeying to the bank of mom and dad. is this raising a red flag for the housing market overall? details are next it's been a long time since andrew dusted off his dancing shoes. luckily denture breath will be the least of his worries. because he uses polident 4 in 1 cleaning system to kill 99.99% of odor causing bacteria. polident. clean. fresh. and confident.
neulasta onpro is designed to deliver neulasta the day after chemo and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home ask your doctor about neulasta onpro. pay no more than $5 per dose with copay card. >> david: rising home prices are sending first-time home buyers to the bank of mom and dad to berate you know that
bank more than 26% of mortgage borrowers use fha loans are now tapping the relatives for help with down payments. now, turning to parents for loans is new but up 20% from 2011. so is this another red flag for the housing market? what do you think? >> david to come i don't think it is but just the opposite. a couple of years ago, when we moved to florida, my daughter just bought a home in boston. had to get a mortgage. getting a mortgage is a complete household. so people are turning to their parents. a lot of them sitting on a ton of home equity and getting a loan or whatever, i think it is actually smart thing to do. i hope it reforms the whole mortgage industry. >> david: 's pretty tough coming up with a down payment with a house prices. there is an affordability problem let's just say. our prices going up? i visited with the chief of blackstone sportsmen big homeowner come i guess you could
say. what is next for house prices? i think really the upside here, a lot of it is in but i'm not concerned about price is falling. and it is highly unusual historically speaking for house prices to fall like they did during the great recession. so what you would think, even if the appreciation cools off, a flattening wall of inflation to catch up. that is right. before actually the housing crisis brought on because every model in the world some nationwide housing prices would never go down because they never had gone down. in a synchronized way. i don't think that will happen. either, although don't roll it out. i think this change in terms of mom and dad being more important is a little bit like gary said, reforming of the market. there were so many players in the business willing to throw cash at first-time homeowners, people with poor credit scores. that is how we got into trouble. so those people are not there anymore and guess what, people turning to their families which
frankly i know the data suggest people are more able to walk away from loans from their parents. i would sort of dispute that. i think those must be emergency measures, but i think basically, this is a good thing this is happening. >> i think what we are missing about the story, we have an entire generation that has mortgage middle-class future because indebted by student debt. that they can't get out of. and i think that is probably one of the worst thing -- things we are having right now not only te student debt but also health insurance that they have to pay into which cost more than what they are actually receiving. that is why we saw tons of earlier generation not go into obamacare. so the problem we have is not necessarily the housing market. the problem is we have a generation saddled with debt. >> david: you have a problem with regulations. the forms that you now have to fill out because of all the extra regulations after the 2009 recession came in or just really
kind of scary. if you get a loan directly from your parents or a friend or a distant relative, you don't have to go through a lot of that me mess. >> pages of forms. >> david: you also have to have a job, demonstrated the ability to repay what you owe and really you have to come up with a small down payment as low as 3.5%. >> david: i am selling a house, selling my parents house, the house i grew up in. i had to sign 64 page document with home agency that is helping me sell this house. and that is on the seller side. on the buyer side, a whole new set of forms. maybe you need extra regulation but not as much as we have had to periods before that is the miracle of having a crisis, you know, nothing does better than a crisis for generating regulations. that is where we are and by the way there is movement to roll some of that stuff back and make sense t to do that.
>> regulations increase cost. >> liz: yeah, they do. >> david: de regulations increase business. thank you, everybody. have a great weekend and that does it for bulls and bears and we will see you next time. - [narrator] the following is a paid presentation for lifelock with norton, paid for by lifelock. - look around, so many of us are on our phones and laptops. we're on public wifi shopping online, filling out forms and applications. in the connected world we live in, our personal information is everywhere. we enter our names, birthdays, passwords, social security numbers, all online. what happens if that information gets in the hands of identity thieves? - i started getting phone calls from credit collection companies. "you've opened an account here and here and here." they wanted payment, payment for things that i did not do. - [narrator] your information is in a lot of places, your protection should be too.