Market to. Economist ben stein on whether they are smart to sit it out. Ben great to see you, thanks for coming in. What do you think of jamie dimons worries . Its an awfully long time prior to the Great Recession that we had a genuine financial crisis. I cant remember a genuine financial crisis in the post war period. There were many genuine financial crises in the hundred years before. That hes the great expert. Hes the head of a very, very, very large bank. The one everyone respects. I dont see where the crisis is coming from. If you see what he said to the stockholders, theres likely to be one and likely to be a giant earthquake that levels los angeles, too. So theres i dont think theres any cause for worry about it whatsoever. David youre making me feel a lot better. Here is the gist of what he was saying, he said basically there are so many rules and regulation right now, we cant sort out all that is doddfrank the financial regs, and whenever you have more regulation it slows up whatever process the regulations are applied to. So if we do, when we do eventually get into a crisis, its going to slow up our ability to react to it. Well i have two answers to. That doddfrank is incredibly confusing, like everything that comes out of obamas world incredibly confusing. Thats a real problem. No doubt the banks are more solid. No doubt they are shored up against a crisis. Thats one thing. Second thing is weve learned a gigantic lesson than the last crisis, that is that the federal government can stop the crisis any time. At any time the treasury secretary and mr. Bernanke could have stopped that crisis from happening saying we are not going to let large banks fail. Were not going to let lehman fail, Goldman Sachs fail, any big banks fail. Boom. Thats the end of the crisis. They should have learned that by now. If they havent learned that were in trouble and im very, very worried about people who say that there should be a restraint on government help to banks. Government help to banks kept us from having another great depression, so lets back off of that idea. David before we back off completely even banks that are poorly run . Some say the best thing that could have happened to citibank is it got it wasnt bailed out by the feds and was allowed to sort of break up as it should have been because it had grown too large, you disagree . I disagree with the idea that there should be any of the slightest glimmer of possibility that a large bank could fail. Or even a medium sized bank. That is where you get financial crises. The failure of the bank in 1931 was the proximate cause of the great depression. We cannot let there be any thought, possibility in man or womans mind that there can be a failure of a giant bank. We cannot let that happen. Thats where depression come from. Lets not let that be on the table. As for sorting out the regulations of doddfrank some clever bureaucrat wink, wink can figure that out. David lets talk about stocks americans have been burned several times in the past ten years. First in the dot com crash and of course, in the late 2000s. So do you think that americans are spooked for good on the stock market . Is it a terrible mistake theyre staying out of the stock market . Well, first of all most americans dont have money to invest. David thats a good point. Majority of americans are living paycheck to paycheck with a small minority of appreciable amounts to put in the stock market. Those who do should put it in the stock market. Warren buffett has the ultimate genius thing to say you should be partners with people who own great businesses. If you were to buy the dow 30 or the s p 500 or mr. Buffetts wonderful company, Berkshire Hathaway, you are essentially make yourself a Business Partner with some of the smartest most capable people in the world. Why anyone would not do that . I dont know. Why buy rental property if you can buy part of Berkshire Hathaway. Rental property is a lot of fun why not be part of Berkshire Hathaway instead . David rental property can be a hell of a headache. Incredible unbelievable ive had rental properties absolute nightmare but there are many people who are stronger mentally and physically than i am and make huge amounts of money from it. Im not one of them. Just buy into the s p 500 or the dow 30 or Berkshire Hathaway and youre a partner in great businesses. David i would argue that there are other people smarter than you mentally. I disagree with you entirely. Lots, lots. David ben stein reporting from hollywood, thank you, ben. Appreciate it. David some lower income workers say if widening wage gap is reason enough to stay out of stocks and liberals are blaming the rich for inequality, former bogota, new jersey mayor says it is the Federal Reserve driving that disparity. How so, steve . Weve heard Hillary Clinton talking about income inequality barack obama ad nauseum talked about the widening income gap as has Elizabeth Warren and everyone else. And they like to blame this on the rich getting richer and the poor getting poorer. They are right, but its not free market capitalism, the failed policies of Federal Reserve system that has kept Interest Rates at these ridiculously low levels for seven years in a row. Claiming that this is going to help the poor. But in reality, what it has done is inspired corporations to invest low cost capital into merger, acquisitions, corporate buybacks or equipment rather than labor. David the corporate buybacks bother me most. They borrow for nothing. They use the real cash in order to buy their own stock which boosts the stock price and leaves them with a debt. Not to create jobs. You see the socalled david or research and development. Seven years of a socalled majority has gone to benefit the rich. We want to see Economic Growth but across the board. Jobs are not created. David political question for you, though its very difficult to talk to the average voter about what the Federal Reserve does. I spent years i havent figured out everything how the Federal Reserve works. Does it have any political resonance at all . I believe it does. Monetary policy should be at forefront of the political david how . I like to argue with you, even on television on a business channel its difficult to talk about Monetary Policy. There was a time when Monetary Policy was the number one issue in president ial campaigns. 1896, 1900 1904, 1952, Dwight Eisenhower ran on the ability to convert money to gold. David true. They understand Economic Growth. David let me interrupt you, anybody out there capable of doing that . Capable of talk about Monetary Policy in a way that has political resonance. They should be talking about true Economic Growth which everyone benefits from the recovery. The poor get richer, the middle class gets richer and the rich get richer. They drive this home. Thats how they drive a president ial race. Neil american principles in action, you are the Monetary Policy director. Not difficult to see why. Steve thank you very much good to see you. Thank you. David the New York Times back president obamas plan to force Financial Advisers to act solely in the interest of clients saying and im quoting, this is the New York Times to our money guys, John Layfield and dave manning. John layfield tell me you are not in agreement with the Editorial Board of the New York Times and in agreement with more government regulations. David what . You always regulate the people that are the small percentage that are doing bad things. There are great Financial Advisers out here but the system is a catch22. The way these guys make money is by churn of stocks, thats how a lot abuse the system and also pushing their own funds, their own mutual funds so they have annuity and get fees hidden in there. These guys need to make money. The problem is you have a small percentage that are used car salesman that should decriminalize these actions. David the problem with what john is saying in the New York Times. Never thought i would put john and the New York Times in the same sentence. Me either we have a government that always overregulates always overregulates and the way they are going manage this, and by the way, theyve been given more authority to do this by the doddfrank law which is a mess in and of itself we talked to ben stein about this. Chances are theyre going to overregulate in a way thats going hurt the Financial Community no . Yeah, if you look at this, what it puts us on the road to is essentially the nationalization of the entire management of the Retirement Funds and private Retirement Funds that everyone has. What it does effectively is push everybody into index funds and say if you want to earn higher returns on Retirement Funds you cant its not an option anymore. Everybody has to be in index funds and revert to the market. What that means is you dont need private intervention saying were going to have Social Security here and were going to have the index funds that are managing the market. But theres no choice. If you want to do better or have young employees as i do, and theyre interested in return and less worried about the security of it tough you cant do it. Nothing you can do about it. David index funds are fine when the indexes are going up 11, 12, 20, 30 as they have in the past three years because weve had the crazy policy from the Federal Reserve. Thats not going to continue every year. Were not going to continue to get indexes that are up double digits, right . No its certainly not going to continue every year. In 0810 you would be unhappy with the index fund. The problem you have is index fund has small fees. The Financial Advisers dont just advise you where to put your money they advise you how to handle Household Budget and debt. They deserve to get paid for this. They dont charge a fee, so they get a fee somewhere, and thats the problem right there. David but the problem with the government getting involved and telling these guys how to operate is you have a, quote uniform standard. Thats what the sec is going to put forth. One size fits all, sounds a lot like obamacare and all the other programs. One size does not fit all, dave . One size does not fit all. If somebody said, look i think the way to beat market is i believe the market is hugely overvalued and going to go way, way down, i dont want to be anywhere near the market and index funds, i want to be out entirely. Ive got fundamentally a short strategy and so thats how i want to manage your fund. You cant. It says tough. You are linked to the market and you get the downdrafts you get killed. But the Obama Administration loves so much to extend its long and rather ignorant arm into the financial regulatory arena and will screw it up. David all right, guys, i knew i was going to disagree with john. I didnt want to insult him. I love him and want to be invited to his location in bermuda. I hope i succeeded. You are always welcome here david. David thank you very much john. Dave, good to see you as well. Thank you very much. Forget Financial Advisers ask a caddie for your next stock tip according to fox business golf index, golf stocks are beating the s p 500 ever since march. So if youre watching the golf masters take note. Conservatives running and hiding. The one place in america where if youre not in line with liberal politics can actually cost you your job. The report youll only hear tonight. Imagine inheriting a winery even though you are not old enough to drink. One boys amazing story on strange inheritance at 9 00 p. M. Only on fbn. People ship all kinds of things. But what if that thing is a few hundred thousand doses of flu vaccine. That need to be kept at 41 degrees. While being shipped to a country where its 90 degrees. In the shade. Sound hard . Yeah. Does that mean people in laos shouldnt get their vaccine . We didnt think so. From figuring it out to getting it done, were here to help. Congratulations. Youre down with crestor. Yes when diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Crestor is not for people with Liver Disease or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. These could be signs of serious side effects. Im down with crestor make your move. Ask your doctor about crestor. David is Silicon Valley discriminating against conservatives . Republican tech workers reportedly tightlipped on voicing political views because theyre afraid of losing their jobs. National journals Rebecca Nelson broke the story wide open. Fascinating piece. Are conservatives afraid to speak their minds in Silicon Valley . They definitely are the ones that i talk to. Theyre worried about the stigma that is associated with being a republican. Silicon valley has long been this bastion of liberalism. No republican president ial nominee has won any county in the bay area since 1988. President obama won 84 of the vote in San Francisco in 2012. Its long been you know, theres liberal supremacy and theyre worried to speak their minds. David what do they think is going to happen if they do . Severe repercussions on extreme ends. The zillow ceo it was found out he donated to the proposition 8 forum. He had to resign after just two weeks. On another end of the spectrum theyre worried that their colleagues wont like them which could result in being passed over for a promotion. One person heard if someone is a republican resume is off the list. David wow i noted one particular quote where somebody said getting your point across just isnt worth it. Its not worth it for the salary, its not worth it for getting promoted and possibly could get them fired. Exactly. Theyre just concerned that they could get fired. They dont want to speak their mind even if they have these strong held convictions. David lets remember that Silicon Valley relies on the capitalist system to exist in the first place, and then to grow. I mean capitalism is at the root of Silicon Valley. Its the thing that makes it exist, the air which they breathe the oxygen is capitalism and coming to bear in the issue of regulating the internet. Some were in favor of the fcc take more action on the internet, now perhaps a conservative view of stopping reg regulation is more accompanying the way they live, no . Some people describe themselves as more libertarian, they really agree with the Mainstream Republican Party on these fiscal issues but theyre worried about being associated with this gop mainstream on social issues, and so they might they go for somebody like rand paul who is clearly more libertarian . Right, exactly. You see peter thiel who is the billionaire cofounder of paypal, he has expressed interest in rand paul. He gave to ted cruzs 2012 senate campaign. Ron paul hes a big supporter of. You see that a little more openly too. David thank you very much everybody should read that Rebecca Nelson from national journal. Interesting piece. Thank you for having me. David swiss america trading chairman says the anticonservative sentiment is coming straight from the white house. Craig, how so . David, you dont have to look very far to see how much mr. Obama has embraced republicans who are conservative. I mean clearly it has been a very, very hostile environment for conservatives and republicans over the last six years and quite frankly i think that Silicon Valley is following suit, and what fascinates me about it david, and you said it just a moment ago free market capitalism which is the bedrock of conservatism, keeping the government out of your business is giving these guys the ability to grow and create huge amounts of wealth huge amounts of productivity and i think guys like Larry Roberts or jcr or vanderveer bush, who is basically the father of Silicon Valley, were anything from liberal. They were conceived as a universalist minister for petes sakes. I find it fascinating once the liberal progressives get their bills they become totally intolerant about conservatives totally intolerant about republicans. David to tell you the truth, craig, its happened on the east coast it happens a lot on wall street where, millionaire and billionaire bankers become quite liberal after theyve made their money. Let me just say most 20 somethings are not making a Million Dollars in Silicon Valley. A lot of them are living at home because they cant afford a place of their own. Wont the message for millennials eventually the reality of policies that dont work catch up with politicians and its not because Young Millennials like republicans, its ju