Craig R. Smith tells FOX's Neil Cavuto Wall St. says no!
Jan. 17, 2008
Author and Swiss America CEO was a guest of FOX NEWS "Your World with Neil Cavuto" today discussing Fed Chairman Ben Bernanke's comments to Congress urging a $100B government stimulus package.
Neil: Wall St. does not want the government involved in stimulating the economy and Mr. Smith thinks today's 300 point sell-off on the Dow proves it!
CRS: I think the market clearly said they do not want the government involved. It reminded me of "American Idol" as some in Congress proved their incompetence by their questions. One Congresswoman did not even know Chairman Bernanke's professional background!
Neil: You think the markets fell based on what the Fed, the President and the Congress want to do because it will make a bad situation worse?
CRS: Yes, that's exactly the signal the market is sending. When was the last time you can remember the government doing anything that is "timely, targeted and temporary"?
To think that these politicians can fix a $12 trillion economy is laughable. If you believe in a free market you must agree that the best thing we can do is to get the government off our backs, out of our pocketbook and away from our kids.
The market needs to work off some of these excesses and subprime mess. Merrill Lynch took a big write down and two years from now it will be forgotten.
Neil: Are we looking at a bear market in stocks right now?
CRS: I'm not sure yet, by Mid-February we will know for sure whether we are entering a short or long-term bear market. The markets are looking for confidence right now, not manipulation. Manipulation is what got us into the mess we're in right now.
Neil: Thank You
Related Story: Bernanke Backs Quick Fiscal Stimulus -Reuters, 1-17-08