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-- live studio with a very special guest Gerri Willis is here.
Of her very -- upon the -- this report I thought I o'clock if -- live in them.
And -- -- -- covered it all the committee com that the economy people's personal situations from very unique angle and you look at these numbers.
-- the durable goods report yesterday it was existing home sales we talk about -- on sales but really who cares it's like 10% of the entire housing market.
And they're just telling us what individuals at home already you know they have their personal situation is bad and in many instances -- You know it's -- it's hard to overstate.
The psychological impact of having the value of your home plummet by 30% in some markets as much as 50%.
We saw historic numbers yesterday down plummeting down I think for a lot of Americans that's really disturbing see the durable goods numbers today also a disappointment.
Yeah let's talk a little bit about -- after the news that we've had on.
How that president's program for revitalizing the housing market is going and let me tell you is not yeah it's not right -- and her baby nobody is driving the car 75% of the people who have been in the program are falling out they can't make the payment why.
Because -- loan to value ratio is almost 65%.
-- -- -- -- You know where it should be to be a third it should be 33%.
It's not happening.
And I heard -- talking to Neil Cavuto.
Earlier this morning and he said something really Smart he said Americans aren't stupid.
If you're gonna give -- hand out if you're gonna get some kind of tax credit out there.
Not gonna move until you give them another goodie they get hooked on these special benefits these tax credits.
These you know loans.
With special rates and you know they don't -- -- play -- gonna give them a little incentive.
That seems like then you probably get that sense do so much consumer reporting her dad you know people aren't going to buy unless they have an extra.
Incentive to do it in Kenya and edit and some point -- -- to cut off which they have now and then that's leaving people.
Bomb it is sure they're not buying -- -- things suggesting is that.
Even who has not government incentives.
And -- and is driven by incentives but you have the lowest interest rates you're ever gonna have been in the market and people are still not -- because they expect that to go lower they expect -- the the prices to even go lower.
In many cases lately -- spiral that's how that gets -- ugly expectations that prices will decline and decline and decline.
He had this conversation the marketplace right now how do we heal the housing market what do we do.
Bill Gross of Pimco is saying nationalize market.
And we have a national market right now.
Fannie Mae Freddie Mac CNN behind.
We've already got incredible involvement of the federal government in the housing market I don't know how you make it any more public -- -- for the government trying to do something to rework mortgages -- -- -- people's payments is to keep more people from walking away the calls a quarter of people with mortgages on their homes are under water.
And that is the great unknown is that do you get in increasing spiral.
Downward where people are just giving up their hands and giving up their homes very.
For many people that there's a moral obligation to pay it but for many there is not even in commercial real estate UC.
Buyers walking away from these huge property.
You know what's interesting about that is we took a look at the people who walk away increasingly -- people at the very high in the very wealthy and the broad middle class less likely to walk away they feel more an obligation to pay off that day he believed that I mean the broad middle we have to make sure these people can hang on to their houses.
Somehow we have to make this economy feel.
More robust we have to encourage small business to hire we have to stop passing new regulatory regimes for every industry from soup to nuts.
And get back to what we really do that.
You heard any good ideas by the way on small business because that has been a big topic last couple of years but you heard anything you think would actually work well.
Let's -- -- it -- not yet come to know we've had this program out there to give money to the banks to lend to small business that when you talk to small business they say.
-- alone you know why because I don't have a lot of business coming in my front door -- To -- you saw -- recent government survey about -- in this country that small business when he came -- with the availability of credit improved.
For the first time in a number of years but the demand is just knocked out so lenders can't -- and what's more the way they -- this whole thing it's like a mini target rate is a giveaway to banks.
Ultimately -- small business but I think that there could be a disconnect there -- worry a lot about that idea that program I'm not sure it's gonna work.
For small business operators just like for big business operators I have to I think you have to think about.
What is the mood the climate.
Are you encouraging people to grow and expand or with a myriad of programs like Health Care Reform are you encouraging people not to hire and not to -- Some think we just cut -- saw this kind of what we got into with -- little bit if we cut it all off maybe and the expectation of the help wasn't there anymore.
We think suddenly get better or would go through a very difficult time and and bottom out I mean it's it's difficult to know what's -- not a we've kind of dug the hole so deeper or tried to Phillip and it in this way -- -- some.
Or -- it's not just the help it's not just the tax credits is not just the federal programs that -- -- that are the problem it's also the idea that we're gonna -- new regulatory regimes that every week it's gonna be another industry that we're gonna assault.
If you pull that back if you reassure industry.
Things are gonna stay pretty much status quo that alone would get some confidence to bend his -- The Orioles but there might they don't it's not act don't expect -- power to do that no but don't expect those in power to write that.
Because this this was their big broad agenda whether it was health care whether it's financial regulation.
And whether it might mean energy policy down the road and they're not gonna roll it -- so the damage has been done and we'll continue to be done on the economy is that the could.
Collision well didn't and that's what's gonna be interesting in the November elections because I don't think that program they should call it that.
You know idea of re regulating and changing all industries was really up front in the election when we were figuring out who the next president was going to be I don't think it was clear.
From Obama that he intended to rewrite front to back regulations for all of corporate America and I think now we're getting the idea all they want -- change.
And I think that's what Americans -- so disturbed.
Regulatory reform in fairness was born out of the financial crisis which was just kind of developing towards the end of that.
-- -- -- the only thing we're talking about here we're talking about remaking the energy markets to let me.
It seems like it seeps threw -- I mean there's no end to this re -- of the rules for business.
In terms of good thing is that everybody -- with the individuals or businesses they need clear tax policy we don't have it now and will we really haven't even.
Next month or -- months from now that's a great question I wish I could answer that one because.
You know taxes are fundamental understanding what you're gonna oh is critical to planning your business to planning your personal life for goodness sakes and there's so much.
There's so much confusion there's so much lack of clarity about what's gonna happen by the end of the November elections what comes in December.
We just don't know.
The -- may see a twelve and a lot of these issues is that Mickey come.
-- -- -- wink it's Wednesday night and Sunday in the idea that we're not gonna have anything necessarily resolved in the near future and on any number of issues.
Is that we could sit here and talk about what should we do while we should do this -- we're not going to mean -- and we could hope for a there's going to be some sort of an across the board tax cut the we're not gonna happen and those things are going to.
-- on that filibuster we have to get Jerry -- -- do you.
You get -- -- on the net I'm sure you can do actually IBM Willis report be there well said -- let them.
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