| 00:00:06 |
Unidentified Speaker, -
AMERICAN FAMILY AND WHAT IT'S WORTH.
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| 00:00:09 |
Unidentified Speaker, -
JOSEPH GAGNON. FROM THE. SENIOR FELLOW. GOOD MORNING.
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| 00:00:13 |
Echevarria, Pedro - Host
GUEST: GOOD MORNING. HOST: MOST PEOPLE SAW THE HEADLINE SAYING AMERICAN FAMILIES ARE WORTH
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| 00:00:20 |
Gagnon, Joe - Senior Fellow
ABOUT WHAT THEY WERE IN THE 1990'S.
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| 00:00:24 |
Echevarria, Pedro - Host
CAN YOU BREAK IT DOWN FOR FOLKS WATCHING? GUEST: THE BIGGEST REASON FOR THIS DECLINE IN FAMILY NET WORTH HAS BEEN THE
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| 00:00:35 |
Gagnon, Joe - Senior Fellow
DECLINE OF HOUSE VALUES IN AMERICA, BY FAR. ALSO, IF STOCK MARKETS DIFFERENT FROM 2007. HOST: AS FAR AS HOME VALUES, DOES THAT AFFECT ALL INCOMES EQUALLY?...
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| 00:00:55 |
Echevarria, Pedro - Host
RICHER PEOPLE MORE BECAUSE THEY HAVE BIGGER HOMES AND MORE STOCKS.
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| 00:01:00 |
Gagnon, Joe - Senior Fellow
PROPORTIONALLY, IT HAS AFFECTED THE MIDDLE CLASS MORE BECAUSE THEY RELY MORE ON THEIR HOME FROM YOU AND HOME VALUES FELL MORE. HOST: YOU SAID ONE PORTION...
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| 00:01:17 |
Echevarria, Pedro - Host
GUEST: IT IS SEVERAL WAYS IT. SOME PEOPLE HOLD STOCKS DIRECTLY FOR VARIOUS REASONS, BUT THEY ALSO HOLD STOCKS THROUGH MUTUAL
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| 00:01:25 |
Gagnon, Joe - Senior Fellow
FUNDS AND IF THEY HOLD STOCKS THROUGH THEIR RETIREMENT FUNDS. FOR ALL THREE REASONS, THEIR NET WORTH DECLINED BECAUSE ALL OF THEM ARE BASED ON THE STOCK...
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| 00:01:43 |
Echevarria, Pedro - Host
IN THESE NUMBERS? GUEST: IT WAS ALREADY THE CASE THAT WE DO AMERICAN FAMILIES DID NOT SAVE ENOUGH FOR RETIREMENT. THIS ONLY MAKES IT WORSE.
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| 00:01:53 |
Gagnon, Joe - Senior Fellow
SO IT IS NOT GOOD NEWS. HOST: WE ARE TALKING WITH JOSEPH GAGNON OF THE PETERSON INSTITUTE ABOUT FIGURES FROM THE FEDERAL RESERVE, TAKING A LOOK AT HOW
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| 00:02:06 |
Echevarria, Pedro - Host
AMERICAN FAMILIES ARE DOING WHEN IT COMES TO THEIR NET WORTH IT. IF YOU WANT TO ASK QUESTIONS, WE HAVE DIVIDED THE LINES DIFFERENTLY TODAY. WE HAVE...
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| 00:03:01 |
Gagnon, Joe - Senior Fellow
ECONOMY WORKS AND HOW PEOPLE BEHAVE. ONE OF CHAIRMAN BEN BERNANKE'S INTERESTS IS EDUCATION AND LOOKING AT WHAT ARE SOME AREAS WHERE THE FED COULD EDUCATE...
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| 00:03:29 |
Echevarria, Pedro - Host
ARE TYPICALLY DONE OVER SEVERAL
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| 00:03:33 |
Gagnon, Joe - Senior Fellow
MONTHS BECAUSE PEOPLE ARE CALLED TO DO INTERVIEWS AND IF THEY'RE NOT THERE, THE NICKELBACK, SO IT TAKES TIME, THOUSANDS OF INTERVIEWS. BETWEEN MAY AND...
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| 00:03:53 |
Echevarria, Pedro - Host
HAPPENED FROM. 2010 TO FROM. GUEST: THERE'S GOOD-- 2010 TO THE PRESENT. GUEST: THERE'S GOOD NEWS, THE STOCK MARKET HAS COME
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| 00:04:08 |
Gagnon, Joe - Senior Fellow
BACK, MORE THAN HALFWAY BACK TO
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| 00:04:11 |
Gagnon, Joe - Senior Fellow
WORD WAS IN 2007 AT THE PEAK. SO THAT IS GOOD NEWS. IT HAS FALLEN IN THE PAST TWO WEEKS AND ALMOST GOT BACK TO WHERE IT WAS AND IS BACK AGAIN. HOUSING...
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| 00:04:45 |
Echevarria, Pedro - Host
ARE MORE WELL-OFF, YOU PROBABLY DO BETTER BECAUSE OF STOCKS.
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| 00:04:49 |
Gagnon, Joe - Senior Fellow
HOST: BWITH WINDOWS THE NEXT SNAPSHOT GET COMPILED, WE WOULD SEE RESULTS THREE YEARS FROM NOW? GUEST: THAT MEANS DOING A SURVEY A YEAR FROM
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| 00:05:01 |
Echevarria, Pedro - Host
NOW AND THEN IT TAKES THEM ALMOST TWO YEARS OR A YEAR-AND-A-HALF, BASICALLY, TO
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| 00:05:07 |
Gagnon, Joe - Senior Fellow
GO OVER EVERYTHING. HOST: AS FAR AS WHO DISSEMINATES INFORMATION IN WASHINGTON, WHO USES IT AND WHO COULD USE IT THE MOST AND HOW DOES IT AFFECT
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| 00:05:17 |
Echevarria, Pedro - Host
POLICY? GUEST: ONE OF THE BIGGEST AREAS WHER -- WOULD BE TAX POLICY.
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| 00:05:27 |
Gagnon, Joe - Senior Fellow
WANT TO SEE IF THERE'S A LOT OF INEQUALITY AND MAY BE CHANGING THE TAX SYSTEM IT. HOST: ONE OF THE FIGURES SAID IN 2007 THE MEDIAN U.S. FAMILY INCOME...
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| 00:05:44 |
Echevarria, Pedro - Host
IT COMES TO 2010, THAT FIGURE DROPS TO $45,000.8007,800. GUEST: MEDIAN IS THE LEVEL AT WHICH HALF THE INCOME HAVE MORE INCOME THAN YOU AND HALF THE PEOPLE...
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| 00:06:06 |
Gagnon, Joe - Senior Fellow
OF PEOPLE BECAME UNEMPLOYED AND DROPPED TO SOME VERY LOW NUMBERS. THAT BROUGHT DOWN THE MEDIAN. THESE ARE ADJUSTED FOR INFLATION. THOSE ARE THE FACTORS....
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| 00:06:35 |
Echevarria, Pedro - Host
CITY, MAKING BETWEEN $50,000.100000 DOLLARS. GOOD MORNING. CALLER: YOU MENTIONED THAT TAXATION BEEN ADJUSTED MIGHT BE AN APPROPRIATE
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| 00:06:50 |
CALLER, -
WAY OF DEALING WITH THE PROBLEM. IT SEEMS THAT THE GENERAL FEELING IS BASED ON THE IDEA THAT IF YOU INCREASE TAXATION, IT WOULD INCREASE PRODUCTION. I...
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| 00:07:53 |
Gagnon, Joe - Senior Fellow
OUT. THEY DO FIND EVIDENCE FOR SUCH A -- A CURVE. THESE RESULTS SUGGEST THAT TAXES WOULD HAVE TO BE MUCH HIGHER THAN THEY ARE NOW TO AFFECT PRODUCTION,...
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| 00:08:50 |
Echevarria, Pedro - Host
A NURSE ANESTHETIST. I USED TO MAKE $45,000.
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| 00:08:59 |
CALLER, -
UNDER THE REPUBLICAN PLAN DRAINING ALL THE MONEY OUT OF MY 401K PLAN AND WITH TAXES, I WOULD BE MAKING ABOUT $42,000, MEANING MY SON WILL NOT ABLE TO...
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| 00:09:55 |
Echevarria, Pedro - Host
AWAY MONEY FOR MY SON'S COLLEGE, HIS MEDICAL COLLEGE.
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| 00:10:01 |
Gagnon, Joe - Senior Fellow
I HAVE TO CUT DOWN ON FOOD, CUT DOWN ON FUEL USAGE, AND I HAVE TO PLAN ON PUTTING A MUCH LARGER PORTION OF MY INCOME TO MY MORTGAGE, WHICH I EVENTUALLY...
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| 00:10:31 |
Gagnon, Joe - Senior Fellow
DON'T KNOW WHAT TO SAY. I AM ONLY HERE TO TALK ABOUT THE POLL ONE THING THE ADMINISTRATION IS TRYING TO DO -- I WISH THEY WOULD DO MORE AND I WISH CONGRESS...
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| 00:11:45 |
Echevarria, Pedro - Host
GUEST: IF YOU COME FROM FORD OR ONE OF THE STATES HARDEST HIT BY THE HOUSING CRASH, THEN YOU ARE MORE AFFECTED.
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| 00:11:56 |
Gagnon, Joe - Senior Fellow
THE STOCK MARKET AFFECTS EVERYONE ROUGHLY EQUALLY. -- IF YOU COME FROM FLORIDA OR ONE OF THE STATES HARDEST HIT. FLORIDA AND NEVADA. HOST: THIS IS FROM...
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| 00:12:25 |
Echevarria, Pedro - Host
AND HARTFORD -- GUEST: I HAVE LONG ARGUED THAT THERE SHOULD HAVE BEEN MORE ACTION, MORE STIMULUS, BECAUSE WHAT WE KNOW NOW IS THE STIMULUS --
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| 00:12:42 |
Gagnon, Joe - Senior Fellow
STIMULUS WAS SPLIT OVER MANY YEARS AND BASICALLY OFFSET ALL THE CUTTING THAT WAS GOING ON AT THE STATE LEVEL. SO THERE WAS ALMOST NO STABILITY. WE REALLY...
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| 00:14:03 |
Echevarria, Pedro - Host
GUEST: THEY ARE MEETING NEXT WEEK AND MAY ADD MORE TO THAT
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| 00:14:10 |
Gagnon, Joe - Senior Fellow
PROGRAM. IT IS LIKELY THERE WILL DO THAT IN A SMALL WAY. THEY ARE DOING A MODERATE AMOUNT OF PURCHASES EVERY MONTH. I THINK IT WILL EXTEND IT TWO OR...
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| 00:15:26 |
Echevarria, Pedro - Host
OVER $100,000. CALLER: 1 COMMENT ABOUT THE STIMULUS. HE THINKS WE SHOULD HAVE MORE STIMULUS.
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| 00:15:38 |
CALLER, -
ONE PROBLEM WAS THE STIMULUS. THE GOVERNMENT SHOULD ALLOW MORE INSTITUTIONS TO FAIL. YOU WOULD HAVE YOU COMPANIES START UP AND YOU WOULD NOT HAVE THE...
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| 00:16:53 |
Echevarria, Pedro - Host
HOST: TELL US ABOUT YOUR FAMILY SITUATION COMPARED TO FIVE
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| 00:16:58 |
CALLER, -
YEARS AGO. CALLER: WE ARE BY
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| 00:17:02 |
Echevarria, Pedro - Host
NO MEANS -- I WOULD NOT SAY WHERE THE UPPER MIDDLE CLASS. WE'RE SLIGHTLY ABOVE MIDDLE CLASS.
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| 00:17:12 |
CALLER, -
OUR HOUSE DROPPED IN VALUE IN $180,000 AND IT WAS ONLY VALUED AT ABOUT $500,000. IT IS CLIMBING $4,000, $5,000 A YEAR. WE HAVE A 401(K) AND THAT ALSO...
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| 00:18:12 |
Gagnon, Joe - Senior Fellow
FIRST POINT, IF WE LET MORE COMPANIES AND BANKS AND COMPANIES FAIL THEN THAT MAKES MORE ROOM FOR NEW START- UPS. WE TRY TO -- THAT WAS HERBERT HOOVER'S...
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| 00:19:41 |
Echevarria, Pedro - Host
IS WHY CAN WE BRING THE JOBS BACK CAREGIVING THE CORPORATIONS A DECENT PERCENTAGE
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| 00:19:49 |
CALLER, -
RATE COMPARED TO THE OTHER COUNTRIES? I THINK MOST OF THE COMPANIES IN THE U.S. WOULD LOVE TO BE BACK MANUFACTURING AT HOME. WHY CAN WE GIVE THEM A 20%...
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| 00:21:30 |
Gagnon, Joe - Senior Fellow
HIGHER THAN THAT IN GERMANY AND JAPAN. OURS IS NEAR THE HIGH END. I DO NOT KNOW ANYONE WHO THINKS THAT IS THE MAIN ISSUE. I THINK THAT I WOULD LIKE...
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| 00:23:14 |
Echevarria, Pedro - Host
SAYING. I HAVE
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| 00:23:17 |
CALLER, -
SIGNIFICANT INVESTMENTS. THERE'S TOO MUCH STUPID MONEY CHASING STUPID MONEY. WHY CAN ANYBODY TIE THAT INTO THE IDEA THAT THERE IS SIMPLY -- THE TAX RATE...
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| 00:24:36 |
Echevarria, Pedro - Host
IS BASED ON INVESTMENTS? I'M CURRENTLY 50% IN STOCKS.
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| 00:24:42 |
CALLER, -
QUITE A BIT OF IT. HOST: THANK YOU, CALLER. GUEST: ONE POINT I AM IN
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| 00:24:54 |
Echevarria, Pedro - Host
AGREEMENT WITH YOU -- I DO NOT BELIEVE THE REASONS FOR HAVING DIFFERENT
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| 00:25:00 |
Gagnon, Joe - Senior Fellow
TAX RATES ARE VERY STRONG. THE REASONS ARE A BIT STRONGER. IT MAKES FOR A CONVOLUTED TAX CODE. IT LEADS TO A EMPLOYMENT OF ARMIES OF LAWYERS AND ACCOUNTANTS....
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| 00:26:17 |
Echevarria, Pedro - Host
PROBLEMS. PEOPLE DO NOT WANT TO SPEND.
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| 00:26:23 |
Gagnon, Joe - Senior Fellow
THE FEDERAL RESERVE HAS LOWERED INTEREST RATES SUPER LOW. THAT IS WHAT IT TAKES TO GET PEOPLE TO SPEND MORE. THE FED IS TRYING TO HELP PEOPLE TEMPORARILY....
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| 00:27:15 |
Echevarria, Pedro - Host
COMMENTS AND A QUESTION. I WORK FOR
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| 00:27:19 |
CALLER, -
FORTUNE 50. IF YOU LOWER THE TAX RATES, CORPORATIONS WILL BRING JOBS BACK TO THIS COUNTRY. OUR COMPANY IS OUTSOURCING BECAUSE THE LABOR IN THESE OTHER...
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| 00:28:47 |
Gagnon, Joe - Senior Fellow
I AGREE ABOUT DEMAND MORE IMPORTANT THAN TAX CUTS. TAX RATE ISSUES ARE MORE OF WHAT IS BEST FOR THE ECONOMY IN THE LONG RUN. I THINK THERE WOULD HELP...
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| 00:30:49 |
Echevarria, Pedro - Host
THIS POINT, I THINK GREECE IS NOT THE MOST IMPORTANT THING IS GOING ON IN EUROPE.
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| 00:30:56 |
Gagnon, Joe - Senior Fellow
I THINK IT IS ALMOST A GIVEN THEY'LL HAVE TO DEFAULT ON THEIR DEBT ENTIRELY AND POSSIBLY LEAVE THE EURO AREA. THEY COULD POSSIBLY DEFAULTS AND STAY IN...
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| 00:32:07 |
Echevarria, Pedro - Host
HOST:CALLER: I FALL INTO THE SECOND CATEGORY. FAILURE TO ENFORCE OUR IMMIGRATION LAWS.
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| 00:32:16 |
Echevarria, Pedro - Host
LET'S GO TO THE GLOBALIZATION AND THE STIMULUS. GLOBALIZATION OF OUR COMPANIES, TAKING JOBS OVERSEAS AND EVERYBODY IS SAYING, LET'S BRING THEM BACK....
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| 00:33:47 |
Echevarria, Pedro - Host
ON THE OVERSEAS
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| 00:33:52 |
Gagnon, Joe - Senior Fellow
COMPETITION, WE ARE IN AGREEMENT. DOZENS OF COUNTRIES ARE STAND -- SPENDING OVER A TRILLION DOLLARS EVERY YEAR BASICALLY TO AVOID BUYING OUR EXPORTS...
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| 00:34:52 |
Echevarria, Pedro - Host
CALLER: THERE IS NO BENEFIT FROM HAVING THOSE PEOPLE COME IN. ALL THEY DO IS DRIVE DOWN
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| 00:35:02 |
CALLER, -
THE WAGES OF THE WORKERS HERE BECAUSE THEY WORK FOR PRACTICALLY NOTHING. THE GUY WHO CALLED AT THE BEGINNING FROM FLORIDA WHO CLAIM TO BE A NURSE MAKING...
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| 00:35:48 |
Echevarria, Pedro - Host
HOST: ARE YOU DOING BETTER THAN FIVE YEARS AGO?
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| 00:35:53 |
CALLER, -
CALLER: YES. IT IS A MATTER OF MANAGING YOUR MONEY
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| 00:35:59 |
Echevarria, Pedro - Host
BETTER.
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| 00:36:01 |
CALLER, -
WE HAVE MARKET ENCOURAGEMENT TO DO THAT. PEOPLE ARE HAVING TO CUT BACK AND IT IS PROBABLY A HEALTHY THING. THAT WOULD BE NICE IF THE ECONOMY COULD...
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| 00:36:32 |
Echevarria, Pedro - Host
DISTINGUISH BETWEEN PERSONAL FINANCES AND THE OVERALL FINANCES OF THE ECONOMY. PEOPLE
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| 00:36:38 |
Gagnon, Joe - Senior Fellow
HAVE NOT SAVED ENOUGH. THAT WAS THE PROBLEM ALL ALONG. SAVING RATES HAVE GONE UP, AND THAT IS GOOD. THE TIMING IS NOT THE BEST BECAUSE YOU WANT THE SAVING...
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| 00:38:02 |
Echevarria, Pedro - Host
FOR THEM. WE WANT
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| 00:38:05 |
Gagnon, Joe - Senior Fellow
THAT IN A CONTEXT WHERE THEY START SAVING DOWN THE ROAD. I THINK IT IS BETTER THAT HOUSEHOLDS CHANGED THEIR BEHAVIOR NOW. SAVE MORE NOW. HOST: FOR THOSE...
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| 00:38:28 |
Echevarria, Pedro - Host
ON, SIR. CALLER: IF THE LADY WHO JUST CALLED, SHE WAS TALKING ABOUT MAKING ALL THAT MONEY.
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| 00:38:38 |
CALLER, -
I AM RETIRED. I NEVER MADE $100,000. I WAS MAKING MONEY TO JUST KEEP MY FAMILY GOING. THAT IS WHAT I HAVE TO LIVE OFF OF, BUT SOCIAL SECURITY. THAT IS...
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| 00:40:14 |
Echevarria, Pedro - Host
I WORKED HARD. HOST: WHAT IS THE VALUE
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| 00:40:19 |
CALLER, -
OF YOUR HOME? CALLER: PROBABLY A COUPLE OF HUNDRED THOUSAND DOLLARS.
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| 00:40:26 |
Echevarria, Pedro - Host
GUEST: HIS OBSERVATIONS ARE VALID.
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| 00:40:32 |
CALLER, -
HOST: MICHAEL, OVER $100,000.
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| 00:40:37 |
Gagnon, Joe - Senior Fellow
CALLER: GOOD MORNING.
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| 00:40:42 |
Echevarria, Pedro - Host
ISN'T IT TRUE --
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| 00:40:46 |
CALLER, -
PRIOR TO THE 1990 'S, SOME ECONOMIC CONDITIONS IS WHAT CAUSED ARTIFICIALLY INFLATED VALUES, PARTICULARLY REAL ESTATE IN THE 1990 'S. NOW THE VALUES HAVE...
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| 00:41:30 |
Gagnon, Joe - Senior Fellow
WHAT MATTERS IS THE INSTRUMENT YOU GET FROM LIVING IN YOUR HOUSE AND SO YOU DON'T HAVE TO PAY RENT AND. IF YOU DO WANT TO MOVE OR PASS SOME MONEY ON TO...
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| 00:42:12 |
Echevarria, Pedro - Host
GUEST: I THINK YOU'LL SEE SOME RECOVERY. 2007 WAS KIND OF A PEAK.
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| 00:42:23 |
Gagnon, Joe - Senior Fellow
I DON'T THINK HOUSES WILL GO ALL THE WAY BACK LIKE THAT. WE'LL SEE SOME RECOVERY. WHETHER THE GOVERNMENT PROGRAMS PUSHED HOUSE PRICES UP TOO MUCH. NOT...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.