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'Steve Crowley’s American Scene' host Steve Crowley, 'StreetTalk Live' host Lance Roberts and FinishRich.com founder David Bach on the market enviro...
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So I know you -- -- now what is the biggest personal finance issue in the entire country right now.
Is -- the roaring stock market the housing market both are doing well but what about jobs what about the economy.
Joining me now three of the country's best personal finance experts from TV and radio we have.
Lance Roberts host of street talk live Steve -- late.
Posted Steve Crowley's American scene and well known to the national TV audience David -- the founder of finish rich dot com -- I'll start with you and your right here on set with me.
How was pretty -- American animal in question you wanna know right now is he's -- it in the stock market that's what I'm hearing you know the market -- -- -- doubled in four years.
That's MPs at a five year high but you know a lot of people -- it if you went out on the street right now and asked five people have a stock market is doing they tell EO.
Not so well that's and that's not absolutely amazing because we have just live from four years has been unprecedented.
So if you didn't want -- you've been investing -- -- -- -- your account is now an all time high.
So I think a lot of people are waking up north I how I missing something happened late and should I didn't know everything Internap.
Quickly look at -- -- if you'd have -- all amazing and bonds he'll take on my importance Oxley but you've got -- have one about mare and we're seeing a rotation on M.
-- aren't taking place plants steel what are your viewers telling you what do they care about where they worried about.
Well they're worried about their jobs right now -- -- -- worried about the economy going forward and more importantly.
There -- there really worried about a lot of the issues coming down from Washington terms of the fiscal -- this debt ceiling debate issue we just kind of keep postponing the reality that we've got to start dealing with our debts at some point.
But -- an interesting point about the stock market because.
Here it is split is bottom Preston we've have 100% moves in the markets historically many many times but don't forget.
Most investors are just getting back even to where they were five years ago which they've lost five years of their retirement savings by any of the what -- we can't get more of his time.
And I we investors have lost so much time.
Thank you just what's gone they've lost confidence I mean -- You relatively confident stats on people who believe in this market believe in the stock market think they're being treated fairly.
People want to get out forty what are people saying the F.
There are.
Lot of people get out and 2008 more come back you know I see a bull market Jerry has long in the -- right now -- -- three point eight years is the average where there.
A lot of people are very concerns about April and may there's going to be a correction here.
What people are really concerned about a my show we devote about two days a week too early.
Is hotter and higher interest rates -- -- you get that five to -- percent interest they're always today doing different people.
-- almost feel that they are unaware of how to do it but it is available.
-- a little -- another topic and this is breaking news today and I thought it would be perfect for you guys.
Money market funds now this is a favorite tool of many investors a place to park money we consider it liquid accessible safe place to be.
The federal government is trying to make it even more accessible and -- -- they say.
Now the industry is saying.
Are right if you want to change the rules on us what we suggest is -- 1%.
Redemption fee good idea or bad David.
Well.
Offers -- -- have a what's really but the real core issue here is government doesn't wanna be in the business of backing money market council -- talk about the -- value -- -- -- And when that broke that became a huge crisis the government stepping back in our economy government and have -- wanna be in the business of backing money market funds so what the government is saying is.
Guys if you worried about redemption issues -- let's have a 12 or 3%.
Cushion.
In terms of redemption dollars or -- So you call -- had -- cushion Lance I call it I've padding your pocket with my money if I want to get my money -- -- this product really excel.
-- it's what do you say.
Well.
Well two things first of all we have to define what a money market account really is a money market account is a bank product.
That it was back by a long time go by FDIC insurance money market funds.
As -- security -- these are short term bonds that fluctuate daily thing with -- with -- market movements and so so there's a very different issue between these.
And the end and end is he's absolutely right about fact the government what doesn't -- -- be backing a potential issue that's gonna crop up and and next financial.
You have to sell -- must add that contributed to the unraveling of the economy see how do you -- -- -- place.
Not -- redemption fees and -- -- area know that in the course well yeah at the bottom line is path I don't with a money market account.
Listen you're going backwards OK that's the story the bottom line is with inflation taxes probably -- 234% a year the value of your money is going down and that's what Americans are really concerned about is the erosion of the dollar.
And less spending -- less spending power over the next five years.
Let's talk about I'm happy for just dissect and -- about it you know -- -- on this first housing.
How -- housing you know what's not to love the private housing is coming up all over the country.
And as a reason for that interest rates at age 65.
Year low banks aren't lending money got first time homebuyers back in the market.
Buying properties at 3040% discounts.
Strong across countries and you get stronger is very good for the economy and everything we see an economy right now as a result of homes being rebuilt construction aero inventory all positive for real slats what do you say -- Let's talk about a little bit of reality here.
In order to get this recovery we spent roughly about thirty trillion dollars of bailing out -- -- -- mortgages bailing out banks.
Home tax credits and Cedric Cedric -- -- look the housing recovery is good no mistake about that.
But let's not confuse an organic housing recovery.
With a one it's been driven by tons of artificial enters its taxpayer dollars is pushing these all the -- so.
It's not sustainable if you begin to take away if the Fed starts to extract value buying bonds and so present interest rates.
If interest rates move up -- watching what's you know you'll see a decline in housing I'm not that look it's just justify I think you're Clara.
I think what you're saying -- -- yeah what do you that.
Well I think all over the country property taxes and insurance are going up Jerry's -- look at the ancillary costs.
I don't believe we're really coming up that far in the recovery -- -- at the bottom may be moving up when I talk to realtors and I talked to them all the time.
They tell me the buying has come from Canadians Europeans South America.
And me and people are everywhere -- -- can't sell dope my I don't they're -- campaign arranged by disclosure.
-- you ever fantastic you -- I like this analyst just keep this panel highlight of the other day I'm man -- man irate and I love.
Thank you are.
