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- Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company.
He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."
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Peter
Larry, A great percentage of what the U.S. has in assets and stock/bonds is NOT OWNED by PATRIOTIC DOLLARS. Foreign dollars look at the US as a profit and loss statement.....sorry to burst the patriotic dollar bubble. The rest of the world and any investor knows that the US Consumer's Debt/Asset ratio is HORRIFIC. They know the consumer can't just "home equity line of credit" their way out of this recession. The rest of the world knows what those river to grand canyon line graphs of US treasury to obligatory debt looks like. They know this will produce inflation that makes Carter's years of inflation look like a walk in the park. They know this will have a direct effect on the consumer, which will have a direct effect on business, which will have a direct effect on the stock market. The rest of the world and investors know that the govt is not doing anything to help with real stimulation of the economy (and I not talking about a rebate check here and there), they realize that we are just trying to inflate our way out of the problem. The rest of the world knows that the govt is not doing anything to help business succeed, which in turns hurts jobs, which in turn hurts the consumer. Your analogy of a traffic jam is way off base. Let me give you another analogy. There is a bus that is soooo big and it is sitting in the middle of a four way intersection. The four streets leading up the the intersection is called the free market. The bus is called the govt. That bus has been allowed to get bigger and bigger and is causing the free market to not work properly. We have continued to allow businesses for years to run abroad because the risks/reward proposition for businesses has been getting less attractive due to increased legal constraints, union demands and taxes (Everything that weighs down businesses). But let me guess, your probably writing this from Wall Street where you would like me to do the patriotic thing and prop up your stock. No thanks, not until you give me a good business reason that has some assemblence of predictability to give me confidence to invest in the stock market. Proping up a bad investment is not patriotic at all. p.s. I am sitting back taking nice breaths and relaxing.....I cashed out of the market fully 3 months ago. p.s.s. All I am waiting for is a president to give me incentive to come back in by not just saying, but DOING those simple old fashioned things: Getting rid of Capital Gains Tax Actually lower Business and Individual Tax Actually balancing the federal budget Putting caps on punitive damages so on....so forth Ya know, things that give me a reason to believe that business will become strong again in the US and that the consumer will have more personal dough to buy stuff (That little thing that keeps the stock market up in the first place). Ron Paul, for the love of God, please run and give me an option to vote. You are the GOLD Standard of common sense.
larry borman
Most people have very little knowledge of what is going on in the world economy. Even the experts are puzzled as what to do. Some like to compare the proposed actions taken on by our government and the governments of Western Europe and Japan as bandages. More like a temporary fix or too little too late. The over reaction of investors only help to create a self full filling prophecy. These investors need to take a deep breath, step back and realize they are making matters much worse. Think of the current problem as a traffic jam on the highway. This traffic jam was caused by a collision blocking the travel lanes. It’s important to help the victims (home owners, 401k’s) along with the parties that created this accident, (Wall Street, Banks, etc...).. They must be taken off the highway to allow the traffic to flow. The debris from their reck will continue to block traffic long after the casualties have been taken to the hospital. It will most likely take a long time for the tow trucks to reach the seen of the accident due to the back log of traffic. Cars will overheat, run out of gas; more collisions may accor as people loose there composure in the traffic. Traffic must be redirected around the accident until the road has been cleared. This must be done as fast as possible. This is the only way to prevent additional blockages, cars out of gas, overheating, etc… We can point the finger at who or what caused this problem after traffic flow has been restored. The most efficient way to get things going is not to panic. Leave your investments where they were prior to this problem. This is a very patriotic thing to do in face of the currant economic situation. However it’s the right thing to do. We need our government leaders to restore faith in our system. Ask yourself, what can I do to help or prevent further damage. It’s time to put politics and greed aside and restore the faith we have in our nation.
Glenn
Cody, Great to hear Hayek mentioned on the roundtable last night with you, David, and Liz. Levity: Lower interest rates, more credit, and more regulation will fix symptoms of low interest rates, easy credit, and government intervention Anger: TB changing the top she wore this morning Paranoia: My wife will read this
Bill_in_NYC
Wow G.P. That was not a very intelligent comment to begin with. Let's put that situation to the test... I own a home and pay my mortgage on time every month. My neighbor doesn't pay his so the gov't comes in and lowers his payment by $500 a month so he can stay there. I think, "Why should I keep paying my mortgage on time? I can stop paying and my mortgage payment will drop by $500." You want to talk about a wave, pardon, a tsunami of delinquent mortgages flooding the country. You just thought of the best way ever to have every home in America behind on their mortgage. Yay!! Then the gov't can own everything! Yay!! Communism! Yay!! How about instead, people who don't pay their mortgage lose their house. The house is then repossessed and sold at a realistic price and people like me and Cody who rent can now afford to buy. Yay!! A realistic, capitialist, free market, AMERICAN solution! Yay!!
G.P.
cody, how about a real revolution. you won't like it as a renter but let's get the economy on track. instead of bbying up dead cmo's and cdo's let's bring them to life. no loan modifacation. take down all the wamu, contrywide ect down, put up federal govt '09. mr smith what can you pay a month to stay in your home? 500,1000, whatever. ok we will pay your existing mortgage OFF. the money you owe comes out to 1% 2% 3% whatever. ok mr. smith stay in hs home the govt makes money on anything over 1.5% fed funds rate. now the dead assets show a flow of funds, speeds as a mortgage trader i can look at them, they now have value instead of winging out 20 cents 40 cents ect that the mr. paulson wants to pay. the homeower stays in his home owes the money BUT can pay it. the govt is the largest land owner already. if citi gets 100b of the 700 bil they are not obligated to lend it out, money is sttull frozen. with the new loans mr. smith still meets his the money borrowed. but instead of the fed owning dead assest wher mr. smith still won't pay and be in foreclosure. he still can't get a new refi he has no money. no 401k and the banks won't lend. make the dead assets show life, mr. smith is in his home and we won't need another bailout package. PAY OFF THE OLD MORTGAGES NOT MODIFY. cdo's and cmo's come to life. money flows and the banks have competion with the govt if they ever get back into the lending game again. even at 5% mortgae rate mr. smith cannot refi, he cannot afford it. G.P.