Page 11 - Gary B News Today : Breaking News, Live Updates & Top Stories | Vimarsana

People were disenfranchised and if they come back into the labor market because they see it's improving they'll put upward presence on the unemployment rate. but people are buying stuff and they're going to be optimistic developing new products and weigh in on that. and is it going to go back to levels it was in the '90s anytime soon? no. and look, when you see a company layoff over a thousand people like motorola, you don't read about the thousands of people also hiring in other divisions. the layoffs get the attention and doesn't mean the economy is falling apart necessarily. >> brenda: but ...

Helped propel it, but i think that's really the main driver. i think that's still there. i think we're going to go a lot higher. >> brenda: you know, stephen, usually when the small investor get in and try to catch the bull, it's time for a correction, or the markets start heading the other way. which way do you think it's going? >> i think that's what we call the wall of worry. gary b makes such a good point, compare the stock market today to four years ago, bond yields are so much lower, they're so awful, really, and you look at p.e.'s on stocks, meanwhile. >> brenda: the price tag basically...

All-time high and people should feel really good, right? why don't they feel so good? well, you know the people who own stock is a relatively small part of the world. gas prices are higher. home prices are 020, 30% off and we have twice as many, ten times as many people on food stamps and debt per gdp is twice as, and this is a lower high, if you will. you have to put the rest of the macroeconomic stuff in a picture and this is not as exciting as it was in 2007. >> brenda: you must know about lower highs. >> yeah. >> brenda: okay. gary b, what do you think? where is this market going? >> well,...

There's a lot of of hard work and patience by the american people who had to wait too long for this. >> brenda: gary b, i always heard that men were responsible for all the pain of childbirth. (laughter) >> a different perspective, brenda. >> brenda: we are on cable, but, all right. gary b, are spending cuts responsible for this rally? >> i think so. certainly this week. you know, a lot of times we talk about things on the show that, you know, maybe a little bit inside baseball. maybe a little bit a wall street centric or capitol hill, but in this case sequester-- there's not a person out ther...

Taxes are at historic lows for about 16% of gdp. domestic discretionary spending is lower than it's been since 1962. so, you cannot cut your way-- spending cut your way out of this problem. if you want to attack the debt and deficit you have to have a combination of the two otherwise the math doesn't add up. >> brenda: gary b, let's do the math what the ending of the payroll tax holiday has done so far. is that evidence perhaps that we can't hike taxes more? >> well, i think you just saw it, brenda, with what's happening at wal-mart. they clearly stated that you know, that's their constituency...