we're going on to cavuto on we're going on to cavuto on business. captioned by closed captioning services, inc. >> you bail, you're out. woe to politicians who spend, the voters the world over are spent and does the former prime minister know it and this german chancellor feel it and does this utah senator appreciate it and stumbling out the door california governor belatedly see the magnitude of it. don't look now, my friend, but the spending spiral has the voter rage going viral. welcome everybody i'm neil cavuto and fox on top of voters fed up. here, there, everywhere. forget whether this is an anti-incumbent way, is it really an anti-bailout of any sort way? to ben stein and dagen mcdowell and adam, and charles payne

says, damn right it is, charles, wow. >> that's right, the way the votes have gone, excellent for the taxpayer. great news. listen, i can hear the bugles, can you hear the hooves of the horses coming and the cavalry is around the corner. you don't hear it. >> neil: got to take-- >> the voters are saying enough already, enough. >> i don't hear it either. >> all of you guys in for the ear marks, all of you guys who voted for obama care and the bailouts. all you've done, you sank our future. all you've done is sell us down the road for near term comfort. by the way for votes you thought you were going to get, but you're not. >> neil: charles is going to come back later and he keeps hearing red rum, what do you make of it. >> i think that charles is absolutely right. we began to touch on it this week on this very program and ultimately, this movement, and this country is what's going to save the u.s. from becoming a greece. becoming a portugal. becoming a spain. if the vote,send a message and send people to washington who will stop the spending and cut

spending. and get our financial house in order, that this is the direction that we're moving in that could ultimately save the u.s. >> neil: you know what's fascinating about this? even in the case of senator bennett in utah. very conservative chap by almost all measures except when it came to voting for tarp and a couple of these bailouts. then he was persona nongrata even in his own party and this is a trend that we've seen again and again in this country outside this country. what's going on? >> well, if it is a trend it's a very dangerous and frightening trend because some of the bailouts were incredibly important. the auto company bailout was vital. the bailout of the big banks was vital and we got most if not all of the money back with a little bit of profit in some cases and the idea that all bailouts are bad is an extremely dangerous and foolish idea. and of course, the yidea that w all want to cut spending is sensible. where are you going to cut it. it proves impossible to cut.

even a reagan couldn't cut it. where are they going to cut it. if they don't cut it, they're going to raise taxes. we'ren ott pathway to being a socialist country, but i don't think there's any way out of it thankly. >> neil: adam. >> ben is right the voters are behaving irresponsibly. you take a gordon brown, an unpopular politician for a variety of the reasons. the fact of the matter it, he did the right thing, he saved the british economy in the near term when it-- >> we don't know that, we don't know that at all. i know you and ben admire and say that these bailouts are justified and proved pressing, but we don't know that in the case of gordon brown has a separate issues talking to voters in his country. that's another issue. we don't know whether that's so brave. >> neil, what would have happened if all the big wall street and city of london banks had failed.

what do you think the condition of the country would be now? >> you keep perpetuating this what-if scenario because we don't know. >> to another point, okay, they didn't fail, what's happened? 10% unemployment, 40 million americans on food stamps. yeah, the banks are in business, and making money for the banks. the average person got nothing tore taxpayer money. we could have framed this so much better at one point we had 23 trillion dollar to back stop banks. if what if would have back stopped regular americans with that money. >> charles, here-- >> here is the deal, charles. >> well. >> go ahead, adam. >> it's great for democracy that the voters toss these people out, that's our right. the guys and gals who come in next are going to be faced with the same exact problems and they're going to come at it with some of the same exact solutions. >> hopefully they'll have the guts to take a different route. >> we'll see in the coming weeks-- >> should we toss them out, fine. >> in the coming weeks we can

watch pennsylvania and arlen specter and his race for the democratic nomination or blanch lincoln in arkansas and just as telling would be in kentucky, grant paul. >> neil: to a general point, know whether or not the bailouts are justified or not. and adam, not to argue this as much to see the voter rage is palpable about this. i'm just wondering then, where do we go from here? and ben to your point about whether politicians, you know, revisit this sort of stuff anyway, that they can't cut spending so invariably it's going to mean we're up against a rock and a hard place and more to come. >> higher taxes, but bailouts are not always a bad idea. the stimulus plan. >> neil: they're always a bad idea, ben, always, always, a bad idea, always, always, always. >> and to answer the question or friend charles put about hoof beats pounding in the rain. if we would not have had the

bailouts to the banks, we could have had a depression with unemployment at 25%. >> neil: and fact of the matter is, once estarted the process, the voters, who aren't too dumb worldwide, what you do for one, you do for others, extend from banks to auto industry to the mortgage industry, to anyone who's having difficulty, buying a home to anyone who's having difficulty securing a college loan and they see where this leads and they say, why did you even start the process. >> it leads to a thing called greece, portugal or spain. >> no. >> invariably and people know that. >> and ben-- >> i want to remind you all about something. arnold schwarzenegger came into office on a tax revolt, the voters threw the last guy out. >> neil: true. >> because they didn't like his increased taxes. arnold came in and said, oh, my gosh, i've got to raise tacks, too, and term limited out, so it's not a matter of throwing him out. it's extremely unpopular and a new election in california faced with the same problem.

the voters don't want to face up to this, neil. they yus want to be angry. >> oh, man, come on, they want to be angry? >> ben. >> i don't know if they want to be. >> they don't want to be angry, rightfully angry, but to ben's point. ben it's a sad state if we can't figure out how to cut the entitlements. >> we can't, we can't. >> or start one or two new wundz. >> totally agree with you, i was not a supporter of the health care bill. the fact is we need to spend an awful lot of money to keep our government going and we're going to have to raise taxes. we didn't have 0 cut taxes, we're in a fine fiscal footing. bush should not have cut taxes and go back to the tax situation before bush i think we could get it straightened out. >> neil: i love you dearly, ben. but i know charles is hearing bugles, i don't know what you're hearing. >> hoof beats e whatever. with enemies like los angeles and san francisco and now the united nations, ear arizona's

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>> live from america's news headquarters, i'm kelly wright. money matters tops lawmakers' mind today. president obama pushing congress to pass financial overhaul legislation. in his weekly address, mr. obama says the sweeping rule changes would empower and protect consumers. >> with reform we'll make our financial system more transparent by bringing the kind of complex back-room deals that

helped trigger this crisis into the light of day. >> meanwhile, republicans blasting the democrats on their economic policy saying they just want to continue spending money we don't have and what to do it without a budget. >> the fewer sacrifices washington makes now, the more americans will be asked to give up later in the form of massive job killing tax hikes. this is a recipe for economic disaster and it has to change. >> i'm kelly wright, now we take you back to cavuto on business >> when crack pots crackdown on arizona cracking down. even if it means a broke city like los angeles with the financial times and the state. san francisco all public business with the state and now even the united nations, the united nations citing human rights abuses, in the state, such is the state of fast moving events, arizonaens getting real

about an illegal immigration programs getting worse. and the united nations? >> this is a height of hipocracy which i never thought i'd see in my entire lifetime. the united nations very largely a gang of murderers, cut throats, genocidal tyrants judging arizona, behaving by an incredibly polite, legal, law abiding constitutional way of doing business, they have not said we're going to stop everyone on the street and see if he has papers. what they've said if a person is arrested or stopped for some other crime we'll check on his immigration status. there's nothing wrong with that the an at all and the idea that san francisco and l.a. the lunatic centers of the world, take it from me i've lived in los angeles 34 years and i assure you it's true, and i'm one of them, the idea of us judging arizona that has an illegal alien problem beyond what we can even imagine in california, it's laughable and

nauseating. >> well, l.a.'s not-- they're a collection of lunatics that are also broke, ben and laughable that-- >> if i were in l.a. i would soon be entertaining, doing business with ahmadnejad, let alone-- >> they should be thankful for every dime, cent that comes into that city and jeopardizing potentially businesses coming into los angeles directed from arizona. just looking at a couple of the airlines. >> neil: adam, you feel guilty, don't you? >> well, i'm just amused that ben got to the takes one to know one line before anybody got a chance to use it on him. this is a free country and we get to say what we think about what other people do and there's no consequences for doing it. >> neil: there is a consequence for doing it. you're telling the taxpayers in los angeles and san francisco who i think are in such desperate straits now i meant it when i said they entertained doing business with ahmadnejad to balance the books because

they desperately need the dough, you're wiping off and wiping out business ties with a very important partner that neighbors you, not a good move. >> you know what, neil, i've made the point on the show repeatedly about represented democracy. i like it when our represented leaders make a statement on our behalf. they say we don't like the way our neighboring state is behaving and we're not going to do business with them. if you don't like what i'm saying on your behalf, by the way, fire me, i like that. i really like that. >> neil: what are they doing wrong, adam. what are they doing wrong. what's arizona doing wrong? >> their tone is offensive to people of hispanic origin and that's something that we could have an honest depate about, but that's the way the people who are protesting against this feel about it. >> tone and action are two different things, they're accusing the people of arizona of actually doing something and targeting these people. and that's not happened. they're wrong, they're upset about the law, that's it. >> neil: charles. >> i think it's kind of scary we're going to assume the law is going to be implemented in a

racist manner. i don't know what it says about this country and the idea that the u.n. will weigh in. i mean, their ultimate goal is to see america disintegrate anyway, they love-- >> it's the same u.n. who gave a pass on moammar gadhafi and the incident of a plane that went down in christmas time in 1988 and then goes after arizona. but leaving all of that aside i'm wondering what message it sends when people who are supposedly railing about the law, like our attorney general, clearly admit and in questioning this past week, they haven't read the law. this isn't a 2000 page law. it's a 16 page law up on our website, i've read it and the extent of my legal experience old perry mason and i-- >> can i, may i ask something. >> neil: go ahead, ben. >> i speak all the time at meetings in arizona, which everybody's trying to cancel now. the people working for us are hispanics, setting the tables, clearing the tables, making up the beds, taking care of the hotels, they're the people who are going to lose their jobs,

it's not going to be some billionaire liberal in brentwood, los angeles, that's going to lose his job. it's going to be some hispanic immigrant who is going to lose his job. >> or a dirt bag crook who's at the u.n. >> neil: that should go over well. we're going to see angry boards, and forgive dr. kumar's bedside money. dna tests, she plans to say i'll do medical. gold prices soaring, your taxes following? we do the connecting.

>> why gold could be-- an

>> everywhere i turn people are talking about gold prices. why gold? >> gold, i should invest in gold. >> that's the sound of security. >> that's the sound of gold! [laughter] >> and remember, it's never been worth zero (laughter) . >> neil: i do not feel bad because this is my future, folks, that's going to be me in a few years, either that or opening a chuck e cheese, but regardless, i do not knock the gold commercials. those gold commercials wherever you go and everyone is listening, say what you will a run for a safety of gold around the world sending price toss record highs this past week and now well up over $1200 the

ounce. adam you say it's a warning sign of higher taxes to come? >> well, it's a sure sign that higher taxes are going to come, but that's the sort of second subject. the first subject is the fact that we know that we have massive budget deficits in the united states among many other places and we know that eventually will lead to inflation and when you know inflation is coming, gold is a good buy. i mean, charles, we have democrats in the white house and republicans in the white house or congress, we're going to have higher taxes in this country, and by the way. >> neil: maybe the night to quality or-- >> i think the fear thing, i think this goes way beyond taxes, adam. really, over the last year, china has bought a ton of gold. india bought a ton of gold and the last couple of months, wealthy europeans are buying tons of gold and they say, you know what, the western economies are falling off a cliff. we don't want that money. >> we should hope for a mega bubble in gold. 5,000 an ounce, we have the largest gold reserve 8,000 tons of gold we could pay off our

debt with it. if we get a mega bubble that would be great. >> neil: all of my costume jewelry will not be-- >> you say. >> neil: what does that reflect to you? >> i think that it's speck laying, actually. if it's anything, it might be fear, but the fear money is also going into our u.s. treasuries, that bothers me because it delays the day of reckoning for us. our rates are low, it's easy for us to borrow, still, that's not sending the right message to washington. washington can keep spending until it sees fit because it's easy to borrow now, later not so much. >> well, the idea that you can predict anything based on a speculative bubble in a commodity is sort of comical. i mean, commodities predict absolutely nothing and the fact we have the large budget deficits probably means we're going to have inflation, but japan has been running enormous deficits now for over a decade and they have no inflation whatsoever so the link between

deficits and inflation proven to be more ten use. but gold prices are driven mostly by speculation and we saw gold-- i bought gold as a young idiot probably the same age you are now, adam. when in the late '70s, 970 an ounce went to about 280 and during a period of inflation. >> neil: it was never worth zero. >> ibm has never been worth zero either. >> you can't say by the way that commodities pricing predicts nothing, ben. i mean shall the movement in agriculture, commodities and oil commodities, even though there was speculation, that was-- >> i will weigh in on that 'cause they've had uses. gold has virtually no industrial use period, it produces no income. agriculture and things we use like oil are very different. >> but normally gold was running, platinum and palladium were running up the sides. >> that's right. >> it's speculative bubble. >> and prices, historically does

not track consumer prices. >> it is speculation, ben, not speculation about making money, speculation that something is awfully wrong with the systems. >> i think it's speculation. >> and the deficits, but i think that people think that this is it, how you look at greece, spain, portugal, eventually going to happen here and it's going to come home to roost ap we might as well be prepared. >> neil: we were told and you never know what's right with this, ben. we were told a lot of the smart money guys were it cannily hoarding it in asia. i don't know if it's true one of the driving rumors behind-- >> that's the commodities dealers always tell you. >> neil: fine, fine. >> always tell you. >> neil: but this has been not a flippant affair. >> i think that the dealers are speculating in it and traders are speculating in it and may turn out or or may not turn out

to-- >> i think you're bitter over your '70s experience. >> i'm not i actually have gold, but i don't think it has predictive value. >> neil: did you follow up with the gold purchase because of the gold commercials on our network. >> no, i'm hoping i should get one of those gold commercials (laughter) >> i keep thinking if you can't-- >> you could make some money, ben. >> if you can't trust g gordon liddy, who can you trust (laughter) >> pretty much shall pretty much, hold it over the candle and wish, baby, wish. and the rush to buy gold is a mainly sign of uncertainty, now we're about to tell you the stock to buy to keep your money safe when everything really does hit the fan. .

safety stocks to help keep your money steady in these very shaky times. charles, what do you got? >> i like flor, a lot of weakness but it's a good defensive play and a stock that should do well when the global economy comes back. >> that would follow that, right? >> yeah. >> ben, what do you think of that? >> fluor, it's recommended by jim kraemer and it has had a little bounce off that. but it's a play, it is a play on the world recovery. but so is everything else. >> can i change my pick? [ laughter ] >> yep. >> i'm just joking. >> i was thinking ahmadinejad wasn't quotable? adam, what do you got? >> if you believe inflation

is coming then you own a tip, and it should be part of everybody's portfolio. small, but still there. >> tips are one of the easiest smartest ways to counteract it. >> you don't get a whole lot of bang for the buck there. >> all the stuff, the gold, tips, defensive measures. we did the sds two weeks ago and this is defensive. people should look for good stocks in weakness in my opinion. >> ben? >> i don't think you can pick stocks unless your first name is warren and i think you might as well buy the index of the largest capitalization stock stocks. >> or unless your name is charles. >> unless your name is charles. if there is a global recovery, it will do really, really well. >> charles? >> the spdr is okay, but no one will get rich. i think the average person watching the show needs something of an edge, but i suggest putting elbow grease in it. >> do stock