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Everybody am Lawrence cement -- welcome to FB and live we -- joined now by Matt McCall the president depends the national group and Liz peek at -- the foxnews.com.
And the Financial Times thank you it is five years since then official start of -- financial crisis with the collapse of Lehman Brothers and the question -- and I know there's no easy answer here are we better off economically he's speaking now and then in September of 2000 any -- where he -- -- begin.
No I don't -- -- even close to being where we should be you said religiously the unemployment rate.
No populist -- we'll came up from 10% to seven point 3% with the -- in the latest reading but yet keep -- -- -- -- people given up looking for jobs.
We still have.
The number actually took back all the people of lost or given up I started looking for jobs we're close at 1011% unemployment -- The fact that the government spend trillions of dollars to get out of this collapse that happened five years ago there were still only right here.
Barely growing -- 2% unemployment a disaster.
Now things are better and you ask Americans to -- -- -- and economies actually less stable now than I was five years ago.
I -- that's I I would agree totally there's ninety million people who were outside the workforce terribly you wanted to find that that's bigger than the country of Germany and has to put that in perspective so.
That that really suggests an enormous amount of capacity that's not being used I think the other side of the coin is what -- we done.
Structurally to make sure this doesn't happen again are we and -- more -- are we on more solid footing now than we were back then.
And I think again a lot of -- -- rules and regulations and changes that were proposed.
To make sure this never really happened again.
Really have not gone anywhere they haven't been resolved they haven't been adopted so we're still very fragile.
And if you look at too big to sell it seems like the banks have only gotten better I spoke to Keith -- a little bit earlier and he was a former director of the National Economic Council.
Between a seven and a nine so he really helped steal quit the fiscal crisis you know -- as it happened.
And he says too big bell has not been solved in some ways -- less risk because of higher capital standards but in other ways were more at risk because this.
Greater concentration of things to do great.
Yeah I agree disagree but that the point is the next bubble that we have -- the next financial collapse.
He's not going to be the -- -- we had five years ago it's going to be from instruments and derivatives that we've never heard of yet that are being created a backroom.
And that's a -- the government yes.
Definitely change these rules and regulations to fight what's happened to pass instead of looking forward soon as they spend it again billions of Linden dollars trying to figure out what happened -- fix that.
Everybody who's pretty damn mess is moved on -- ready so by the time that's what happens.
So the -- continually chasing their tails up as far as too -- -- fell short of the banks are still big.
The -- and I knew these letters as they were in the past and that things wanna make money to banks wonderland what's holding back the banks in creating this problem is the government in my mind they're they're they're Prius problem with the banks.
And and I also think you have this huge shadow banking.
System that is has really yet to be addressed and that's probably where the vulnerability is right now because I read the higher.
Credit standards the higher the reserves standards that the banks are implementing has actually made our banking system I think pretty safe and certainly better than most of the other countries that we're competing with.
But in the shadow banking thing that sort of other other entities that are lending money.
Are not as regulated and there's not as much oversight and we don't really know what the right -- Jones voting yes are there.
It but back to your point I I heard Henry Paulson speak last week.
And he made this declarative statement which I think is totally true that every crisis comes from some well intended.
But ultimately not controllable government policy this one was housing OK but and then interestingly the next day the New York Times ran a big story on.
The ethanol credits and how those have become a big sort of market -- themselves they are not gonna -- -- crisis.
But it is a completely typical example of the government putting in place something where the unexpected consequences.
Are totally outside -- Like you weren't afraid immediately on -- on hands it's a crisis I want talk about housing -- president when he speaks politely.
-- the recovery in housing market.
As where we've made progress by the years later -- pockets where yes the housing market healthy normal again.
Well real estate is local obviously -- I think the housing market is back to normal.
Normal no I think.
Move relative also because where we were before the house market crash which was around -- 2005 than six that was a normal life those prices won't we'll probably never -- prices in our lifetime.
The same time a couple years ago the bottom wasn't normal either so we're getting closer to normal no we're still way off the highs and -- I got him we got so hard in this and housing market that.
What's a blip on the screen if you look at prices where -- come back from from the bottom so now he's gonna -- that and and most people will believe it.
Exactly if you actually trying to sell -- home right now they're not really because they cannot solo home closed at a price they sold it at.
And that's even with artificially keeping mortgage rates slowly keeping interest rates -- -- the -- did.
Everything he could get this housing market moving and is still there.
An inventory is a huge problem right now -- -- not enough of it that is what inflating prices and in some instances and part of the inventory problem is the confidence problem on behalf of the builders I just want to put up the Fox News -- -- a little bit earlier.
On president Obama's handling of the economy 60%.
Disapprove so this is yet another poll we keep seeing poll after poll after poll.
For the average American does not feel safer and does not feel more comfortable now than we did in 2000.
And actually I think.
Well most interesting thing on housing that's happening right now as.
I was listening to -- on -- -- -- on the radio.
Advertising how we can show you how to -- your homes you know how we can Everett and pattern of you've heard this thing people are out there already taking advantage of these sort of -- low.
Mortgage rates and speculating in and people standing we've seen this picture before right.
The Fed -- -- is you know talking taper.
And mortgage rates have backed up and interestingly now all of a sudden purchase contracts though they -- up year -- year they are beginning to -- so.
You know I I -- housing for sure is better I -- off the lows product prices are -- the markets are healing.
But I think it will be very interesting to see if mortgage rates continue to backup on the thirty year mortgage whether in fact this demand is gonna continue.
And we can and the -- that -- your thoughts on.
The president's thoughts himself on the auto sector he's -- -- -- -- at Kansas City manufacturing plant later this week.
He's gonna say we -- insurer late -- not the city that is your thoughts on the on -- covering.
Well when his lackeys came out -- -- left there this morning put out in a touting how good they've done the last five years how they see the auto industry.
The music got a history Jim went bankrupt and yeah.
You can save it we -- because this taxpayer money right having -- I -- -- saying that they actually made money off -- broke even worse case scenario.
Lost billions of dollars and Chrysler and lost about ten to twelve million dollars and GM depending on where they sell all this GM's stock that they have that's a double again from 36 of the mid seventies just to get back to break even which isn't happening I don't I don't auto stocks but it's not happening so.
He's gonna tell this recovery and if you look at the numbers it's a flat out -- I mean I hate to use this word but he's an economic more he just does not his economic team -- clearly thought he'd come what I want I mean it's pretty simple look the numbers are we lost money on it just admit it.
We lost money they've got history in your mind but we lost -- Democrats believe that there has -- -- -- thank you so much and I think everybody for joining us have a today.
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