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And tonight's market masters and let me turn if I may first to you James I mean this.
Doesn't have a chance in the world of having any real the American proposal I know -- who is actually going back to -- -- -- -- But that there was only slightly to be less problematic about the president's and the.
The the president's housing proposal.
I I don't.
I and there are some things that you knew administratively to change this program but ultimately got that's exciting you know yes six I would weaken administratively change -- auctioned at.
It's almost as good as the solution yeah you know -- they'll be able to talk about for a few days and -- -- -- talk about student loans up pretty soon but they're basically what you have to -- with a lot of these things is who pays more -- -- it's -- be investors then and ultimately future borrowers because you see mortgage backed securities falling today with the news that the the government is that gonna make them less valuable and that that's not a the bund markets.
So it's already a brilliant.
Brilliant response to a brilliant plan out of Washington mark.
Well I'm I'm afraid it's once again government only influenced not having any appreciation for how the markets are gonna react.
Without the it's gonna treat not only how to solve the solution but those who are left holding the stick on the other end which is -- bond holders in our taxpayers.
Because at the end of the day this program is corrected only for those mortgages that are provided to by Fannie Mae and Freddie Mac which at the end of the day.
Is gonna mean that we as taxpayers are going to be what the ones shouldering the burden of any of this refinancing activity that's going to be.
Taking place -- where are the triple digit IQ's.
I know there yeah it's a question of the ratio in Washington DC and and Wall Street the but my lord -- -- -- an analyst for crying out loud for Merrill Lynch declaring that there'll be a downgrade.
As if He was unaware of the impact of the last downgrade by a bastion of geniuses.
At Standard and Poor's.
I mean and the impact on the market which was to make I guess the direct causal relationship was to make US debt more attractive to investors.
What what is going on these kinds of proposals out of Washington these kinds -- room and Asians and proclamations by people who obviously don't.
Brow -- key.
Who struggle sometimes with the reality that confronts us.
Well as you said early on I think it's a campaign effort where politicians the minute they get elected are already campaigning for their next job and more about the genius Robert Merrill Lynch.
Well I mean I think you know what He said it was basically probably at least for a actually accurate which is to say sort of -- -- I think it's only my directional accurate -- and see if we get a -- on this and then I think that there is there any -- in the country who was unaware that this country has significant that the problems -- that is there any -- in the country who also doesn't realize that our debt markets are still the most secure in the world.
I guess I would -- what you need it.
Well yeah I don't think you need a triple digit IQ to figure that out Iraq's oil jumped out there as well -- if if it doesn't.
Well no I mean and apparently are elected officials don't seem to possess what because at the end of the day they continue to fumble with what to do and in the meantime our deficit continues to grow.
And what about our Seoul around part of man and woman sitting at home watching you right now Ted.
Trying to figure out what to do that got a 401K they've got real estate so you know that has been at the very least eroded in value.
Uncertain about security of their jobs -- -- about.
What in will -- world.
Well I think I think this is a huge dilemma for all of us spoke both the grade on washed if you will and those of us who Citi round the table.
It's a lack of confidence it's a lack of direction it is very very difficult -- know what to do here.
That's why there's -- -- I haven't we don't see the public at all in the in the -- in all respect I mean in all due respect.
The -- with the -- We've got and as situation talked about the on Washington and those of us around this table well you know what we're all washing in this country that much we still got going for us -- still American citizens.
We don't have anyone talking it seems to me intelligently on Wall Street or in Washington.
And I want to throw this out for your written just for your reaction.
Why isn't somebody to about a change in business practices in this country.
Corporate America actually changing the way it does business how why isn't somebody talk about the way we change the way we do business.
In our schools what is somebody talk honestly about what we do with unions and what is their role because the role there in is that making a with a sense.
Why don't we stop with the nonsense out of -- mean.
Why don't we have a national media that says when a president makes -- sort of in my opinion.
Unfortunate comments and proposals the markets -- sufficient vote.
But what is going on here no one's talking honestly about what to do and no one's talking about a vision of the country.
-- -- -- I think on the first question is question of business practices I mean I I think you're of this story -- current situation is an American business is doing very well in -- tough environment.
They've got very -- there but it really the only good glass is half full the only really positive thing right now is.
Corporate earnings and both.
Big and small companies have become very efficient they're setting a lot of cash.
There waiting for that leadership you're talking about and and we need to see that turn and of course we have a chance over the next year to decide who want -- -- leadership mark.
Well I think the other issue as well as you said -- we haven't recognized the very structural issues that have been problematic for this country.
Then it's not just a recent phenomenon of the last ten years there's there's been no new net job creation -- country.
Wage growth is basically stagnated over the last seven years.
And it's because we're -- a global world and our businesses or manufacturing other countries all in search of low cost to capital.
But the problem is that it doesn't help the US real economy in the fact that you've mentioned earlier on that there's basically fifteen million underemployed Americans out there today.
We need to be doing things to bring the skill sets of those people to the world that we exist in -- so we can in fact repatriate.
Those manufacturing plants and other technologies back here at home and employ American.
Well we've been exporting jobs and said the Clinton administration and we -- pretty good at exporting jobs out of this country and I think.
And soybeans and waste and scrap well.
It and we need to bring those and we need to bring those jobs back we need to get those trillions of dollars and corporate profits -- -- -- North -- -- get him back in the country -- to work here.
Absolutely -- -- more about I have to say we're out of time and thank you very much we appreciate.
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