World credit crunch hits US heartland
Al Jazeera English
Transcript
times have changed for American farmers from when the biggest concern used to be having Cooperative weather the American Heartland is feeling the squeeze of the global financial crisis we have potatoes uh corn beans wheat and the last 10 15 years we've started raising Pumpkins this 700 Acre Farm and its owners have become victims of Market forces extending far beyond Ohio fertilizer has gone up uh three times for for myself Russia and India have a lot of people and they are demanding better food items and so they're eating a lot more meat and uh they've learned that they can produce more with with using fertilizer his father is held this Farm together ever since the Great Depression many in town know him especially at the local bank where he relies on credit to buy supplies his good reputation used to be more than enough now you got to you got to have enough collateral to cover everything uh from one end to the other and and the farmers just can't do that as Farmers they've got perishable crops to get to the stores it leaves them with little time to ponder the US government's bailout plan yes I think we're in for a recession how far it's going to go I don't know if they I don't know if they've got control of it if it's possible to get control of the immense figures that they're throwing out the these kinds of fears could have Farmers backing out of the industry as Farmers make less profits off their crops each year they have to find new and innovative ways to cope here they're calling it agricultural entertainment just so much fun these students have come to the farm not to buy potatoes but to see how far they can be launched this farming Playland was created to make up for the lack of profits but it's not helping we've been down a little bit on uh the schools saying that they can't drive this far um with the um fuel prices as financial troubles pile on even pumpkins traditional house decorations this time of year aren't selling well I tell my friends I said how would it be if your husband worked all year and you didn't make any money I mean that's what can happen on a farm potato prices have just been about the same over the last 30 years you know you don't make any more money and all of our prices have gone up and they're demanding Perfection less credit May mean fewer Farmers less food and higher prices here far from the world's Financial Centers no one is immune from the economic Whirlwind now blowing Clayton swisser Al jazer Wier Ohio
Bush: 'Economy Will Come Back'
Associated Press
Transcript
I said yesterday it's very important for the American people to know that that uh the program is uh designed to preserve free enterprise not replace free enterprise decisions we took to enhance liquidity and make sure our financial instruments are strong as a temporary decision for example when the the equity in U purchases in the banks is designed so that these shares will eventually be sold back to the government uh secondly the program is limited in other words the government will buy only a certain number of shares in individual banks these banks will be privately controlled those the liquidity measures being taken uh are structured such that the government would be a passive investor words there won't be government officials sitting on the boards of private companies uh these are Extraordinary Measures no question about it and uh they're well thought out they are necessary and I'm confident in the long run this economy will come back
Overseas Markets Slide
Associated Press
Transcript
Global Financial markets are sliding after a two-day rally to start the week most stocks in Europe and Asia are trading down amid concerns that worldwide efforts to bring confidence back to the financial system won't prevent a deep Global recession the losses follow Tuesday's drop on Wall Street Japan's DK has been the only Gainer so far closing up about 1% rallies earlier this week flowed from government action in the US and Europe to infuse leading banks with cash to fight the ongoing credit crisis now some are saying investors want to see more action now that the the government's introduced the package to ensure supply of credit we now need to ensure that demand is is supported now that'll be in in two fronts fiscal policy and interest rate policy we've seen an aspect of fiscal policy we now want to see further interest rate Cuts meanwhile us investors are dealing with key reports on retail sales and bank earnings out today John Belmont the Associated Press
Raw Video: 2nd Worst Dow Drop
Associated Press
No transcript available for this clip.
Stocks Fall 733 Points on Economic Woes
Associated Press
Transcript
[Music] agonized investors sent stocks plunging once again Wednesday two disheartening reports convinced Wall Street that a recession if not already here is inevitable you know we're we're going into bad Economic Times the first report released shortly before the start of trading showed retail sales plunging by 1.2% in September almost double the drop analysts expected later in the day A onew Punch from the Federal Reserve added to the selloff the fed's release of the beige book showed the tight credit condition were hurting businesses across the country I think the credit markets have seen some relief but very slight relief they're still looking toward the difference between the liore rate and the FED funds rate uh indicating that banks are still very cautious about lending to one another about the same time fed chairman Ben Bernan backed up that report in an address to the economic Club of New York credit markets will take some time to unfreeze and with the economies of our trading partners slowing our export sales which have been a source of strength very probably will slow as well stocks quickly tumbled following that statement and accelerated in the last hour of trading wiping out most of Monday's record games the Dow Jones Industrial Average plunged 733 points to close at 8578 Brader indexes also were pummeled the S&P 500 closed down 90 points at 98 and the NASDAQ dropped 151 to end the day at 1628 investors apparently have come to believe that Monday's response to the government's plan plan to invest $250 billion in Banks was overdone and that much more needs to be done to revive the economy Mark hamr the Associated Press
Stocks Fall As Retail Sales Show Steep Drop
Associated Press
Transcript
wall street is heading for a lower session wednesday a report on retail sales showed a worse than expected drop of 1.2 percent for september the biggest decline in two years good news is that oil prices are down and that usually means that consumer confidence goes up so as liquidity slowly returns to the credit market people may not be afraid to spend the dow closed down 76 points tuesday a day after one of its biggest rallies in history that was monday when it gained 936 points as investors were happy about the government's plan to use 250 billion dollars to recapitalize many of the country's biggest banks but many analysts say that won't save the country from years of bad mortgage loans that are going sour and that a recession may be inevitable after multiple days of losing sessions last week the dow is now trading 34 below what it was a year ago when it was above 14 000. worldwide most of the major stock indexes were down except for the nikkei which closed up ted shaffrey the associated press wall street
Dow falls 733 on retail slump; JP Morgan profit drops 84%
CBS
Transcript
a string of negative news sent the markets into a nose dive a Federal Reserve report shows the economy has slowed and leaders warn it's not going to bounce back anytime soon the Dow Jones Industrial Average fell 733 points its second largest Point loss ever it is now once again below 9,000 the NASDAQ dropped nearly 151 points a big reason investors sold retail sales suffered their biggest drop in 3 years sales fell 1.2% in September almost double what analysts expected for Wall Street it was sobering news because consumer spending accounts for 2third of all US economic activity bad mortgage Investments sent profits at JP Morgan Chase tumbling 84% in the third quarter Wall Street actually expected it to be worse and high fuel costs hit two Airlines hard in the third quarter in just one year Delta Airlines went from a $220 million profit to a $50 million loss and earnings at American Airlines dropped 00 $30 million it's a much different story at cocacola where the biggest US drink maker reported a 14% profit increase last quarter the company was helped by improving sales overseas at the New York Stock Exchange I'm Alexis christopherus
Notebook: Gas
CBS
Transcript
it's ironic in an Atlanta moriset kind of way that gas prices are down now that the summer travel months are behind us a USA Today poll from earlier in the year found that a third of Americans cancel vacations because of pain at the pump but in the past few days gas station managers couldn't change those signs fast enough the prices are dropping quickly back to below $3 a gallon in many areas crude oil which makes up a big chunk of the price of gas has fallen 44% since the spring not to be the black fly in your chardonay but cheaper gas is a bit of a mixed blessing it means demand is down and people are spending less some economists say it's a harbinger of a coming recession and possibly more job losses if that's true those $4 gallons we bemon might have been a good thing that's either ironic or just the law of supply and demand economics that's a page from my notebook I'm Kitty kurick CBS News
Paulson On Economic Rescue
CBS
Transcript
markets overseas are mixed this morning Japan's nikay Rose 1% but Hong Kong's hangsang was down 5% and London London's footsie is down 3% investors are concerned about plans to rescue Global Financial markets CBS News senior White House correspondent Bill plant sat down this morning with treasury secretary Henry Paulson good morning we're here with Secretary of the Treasury Henry pson this morning Mr secretary welcome Bill good to be here the Democrats in Congress are calling for another stimulus Bill the economy went into the tank after the checks went out the last time would another stimulus help Bill I'm focused on one thing and one thing only which is stabilizing the financial system restoring confidence in the financial system that will do more for the economy than any single thing you get Bank lending going again supporting businesses supporting jobs supporting consumers that's what we need to do Mr secretary it took a while for you to get into Lending money to the banks after this bill was passed in fact Britain took the lead why did it take you so long why were you reluctant Bill let me say the bill was passed a couple weeks ago I I I don't imagine we could have moved any quicker and we have from the very beginning uh been focusing on Capital to the banks getting Capital to the banks either through illiquid assets or or injecting capital I think as the facts have changed it's pretty clear that that the taxpayers money will go further if we uh if we uh in inject Capital into the banking system uh through uh purchasing shares I think that's the right way to go and as the facts have changed we've moved very quickly I I don't think any country's moved quicker than we have we've had nine major Banks sign up for it already there's a lot of uh feeling out there that Wall Street is going to benefit more than Main Street we have a poll that says 2third of the people in our survey think that this is for Wall Street and you're a former Goldman Sachs executive and Goldman Sachs is one of the firms that is being had Capital injected how do you how do you answer your critics well I I would say first of all the Regulators were the ones that picked the firms that were going to have the capital injected into but to step back further the way I answer that that question is to say this is only about the American people only about Main Street the the path we're taking is making sure that the healthy banks have plenty of capital so that they're going to be Lending we're going to have confidence in the system but if if that doesn't work the way it should work the people that are going to pay the cost are going to be those in in Main Street Mr secretary thank you very much for being with us Julie [Music]
World Markets Bounce Back
CBS
Transcript
talk in Tokyo is of a turnaround as stock soared more than 14% Clos for a holiday Monday it was Japan's first chance to join an international surge on stocks markets across Asia kept climbing in response to International efforts to rescue the world's crippled Financial system this crisis demonstrates Beyond doubt that a global Capital Market requires much stronger Global cooperation and supervision Britain LED European countries in pledging trillions of dollarss to buy stock in battered Banks and protecting consumer Cash America is following a similar plan using $250 billion to buy stock in the country's bigger Banks and with confidence and determination we will return our economies to the path of growth and prosperity the Extreme Measures may have headed off a complete Global Market meltdown for now but analysts warn that fears of a severe economic downturn are far from over let's hope that we know it's going to be very painful but let's hope it's very short banks are still skittish about lending money to one another freezing credit to companies and consumers the global financial crisis has entered into a new dangerous and damaging phase one which goes to the real economy growth and jobs but with the markets on the rebound there's hope it may help the global economy turn around too Charlie dager of CBS News London okay
What is recession?
CNN
Transcript
OK, it may not get so bad that Britain's queen will be flipping burgers, as in this altered photo making the email rounds, but Britain is likely in recession already. How do we know? Well, we don't yet, since a recession is generally said to be two consecutive quarters of negative growth, something government number crunchers figure out after the fact. Famously, the National Bureau of Economic Research decides when it's a recession, and in the past it has decided that they've had a recession after the recession has actually finished. But to many, the technical definition is irrelevant. Definition of recession, not enough money to buy the good things in life. Not having any money to spend on the things I want. When shops start to shutter, no one's got any money. There you go, there's a simple definition for you. So who is in recession? Well. Officially, it's France, Ireland, Denmark, Singapore and New Zealand. And that doesn't equate to a global recession. But that fear is why stock markets have plummeted from the highs of last year. We've got a recession already in the United States. There's a risk of a world recession. That means demand's dropping sharply. Actually, the U.S. is not technically in recession either. Don't tell the candidates. In this economy, raising taxes is as sure as possible. And the U.S. is not technically in recession either.
What to buy?
CNN
Transcript
If you sold before last week's disastrous sell-off, you may have a pile of cash and are wondering whether it's time to buy back in. Sector picking may be one approach. But most of Europe's main sectors, be it telecoms, energy, autos, pharmaceuticals or certainly banks, are all down a third or more since markets started to falter in June of last year. I think what you have to do is almost take a top-down approach and so identify what sectors have got a plausible story going into quarter four this year and then mostly into 2009. And then once you've identified the sector and buy all the rhymes and reasons as to why they have pricing power, then go and look at who dominates. Pope likes food and chemicals and is decidedly negative on autos, just one sector that has been hurt by fears of global recession. While pharmaceuticals have suffered heavily from an onslaught by manufacturers of generic drugs. Much of the energy in Europe's indices has come from, well, energy stocks. They had bucked the trend of a slowing market while the price of oil was soaring. That fear of global recession has now been a problem. The US has now pushed oil down near 13-month lows. Globally, the stocks in the energy sector are now down more than 40% this year. Really you want to invest in the oil companies because either they've got a very good total return or you think that the oil price is going to rise and they have a specific advantage with regards to new projects coming on stream. So I don't think it's a blank check with regards to looking at the oil sector. I think you have to be very careful with the names that you pick. The latest turmoil has led to a host of bank takeovers. But M&A has grown to a halt without bank financing. If banks can start to provide the fuel for takeovers in other sectors, watch out. Banks would be foolish to walk away from the deal if they could see it makes good sense to the business model and is going to have a pretty quick impact upon the bottom line. At a time of such volatility and no guarantee shares won't sink further, analysts say going with big and bad. The
Bolstering Banks - NYTimes.com/video
The New York Times
Transcript
[Music] on Tuesday President Bush and treasury secretary Henry pson announced that the government would inject up to $250 billion into the nation's banking system this is part of the $700 billion program that the Congress just recently approved to help the financial system um at first nine large financial institutions will get money Banks like City Group Wells Fargo Goldman Sachs Morgan Stanley and so forth eventually the money will also be distributed to smaller Banks uh the way to think about it is that a bank would use the $250 billion as capital and they could borrow more money against that from the private market so that $250 billion could essentially turn into $2.5 trillion doar of actual lending ability for for the banks because they usually are able to borrow 10 times as much as they have Capital this afternoon credit markets U look like they were improving a little bit but investors and analysts said that you know the the Improvement so far has been very modest the hope is that as this money becomes available to the banks and the banks start using it and putting it to work that uh interest rates would come down for for some of the kinds of loans that uh we become used to having um you the 30-year fixed rate mortgage loan in recent weeks has been around 6% or more um you know conceivably if this plan works as it's supposed to those rates could come down you know those rates have been as low as five and a half or 5% um in recent years analysts said that the $250 billion injection should certainly help prevent a financial meltdown of the kinds we've saw after Leman Brothers declared bankruptcy in September but they also note that it's unlikely to avert an economic recession it's unlikely to prevent further job losses and will cly have more corporate failures um in the next few months
Bronx Residents Respond to the Bailout - NYTimes.com/video
The New York Times
Transcript
I'm Jim nowi I'm a columnist with the New York Times we're on Longwood Avenue in the South Bronx the South Bronx is one of the poorest congressional districts in the country earlier this week Jose Serrano the congressman from this neighborhood voted against the $700 billion Wall Street bailout we spoke to some of the people in this neighborhood about what they thought you think we ought to give them $700 billion no I think you should give it to you know people gave it to everybody else we can bail each other around then we could put it back into the economy and we wouldn't be having the problem that we're having I don't see where uh uh the change however it go is going to affect me as an individual or as part of the community you know it's Corporate America doing what Corporate America does you know that's all it is no organized crime basically it's the new organized crime yeah ain't nothing new about it ain't nothing new about it we not going to see none of that not one red scent no you know whichever way it go whatever way it go we ain't going to feel it we ain't going to see it you know and if we do feel it it's going to be negatively a few of us might lose a few more jobs you know but we ain't going to feel nothing you know positive about it um I'm thinking on a personal level that it may trickle down um and eventually my boss may lose his job and you know a company made and then my old 401K I'm hoping nothing will happen there so I have some concern but um I think at this point we have no choice I have spoken to people that that they were here and the depression you know many years back and they had told me you know what people used to go online with tickets you know to buy food you think we might be facing something like that again and I think it's it's going to happen again it's going to happen again I mean if things don't change you know it's going to happen again again
New Yorkers Brace For Recession
VOA News
Transcript
On the surface, everything is the same. Yellow taxis ply the streets of Manhattan. Buses and subways run and the lights of Time Square are bright. Downtown, tourists still photograph themselves next to the statue of a bull, a symbol of Wall Street prosperity. But New Yorkers from all walks of life say they're on edge. Everybody is very quiet, waiting. The feeling is of waiting. Professor of real estate Rosemary Scandlin notes that every Wall Street job supported as many as three jobs in other industries and it's felt immediately in the restaurants in the city. Taxi drivers and and limo drivers will feel the impact. Driver for hire Jose says he's already having a hard time finding customers. Oh, way you go in the street the gas very expensive. There's no money in the street. He says he's worried about how he will pay for his children's college tuition. On the other side of the East River, Manhattan hedge fund manager Patrick D'Angelo also says the mood is anxious. We're in trouble and right now we need to avoid a depression. D'Angelo says while recession would be painful, it could be managed. A depression on the other hand, which is something that we're very we're faced with in a very real way, scares me because there's nothing any of us can do. And a depression tends to last a lot longer than a recession would last. Fitness trainer Isiah Truman works with many Wall Street traders and bankers at a gym in Manhattan. A lot of them have been saying to me that this is the worst thing they've ever seen in their lives and it's going to get a lot worse before it gets better. And um and the average person really has no idea uh this is what they're saying to me of what is coming down the pipe. I get the feeling that they don't have a clue. They're just sort of playing it day by day. My sense is most people don't have a clue. I'm obsessed with the news programming. I watch it like endlessly. And even then, you still really don't get a a good sense of what is to come. Saudia Davis owns a cleaning business in Brooklyn that's losing clients who can't afford to pay for house cleaning anymore. We actually even have seen an increase in people um that work on Wall Street that's now looking for any job and they're willing to even clean as part of that. So, it's been really interesting. Ramsay Shabur is one of the lucky ones who still has a good banking job, one that pays enough to support his family on Manhattan's Upper East Side. But he says everyone in the industry feels insecure and still reeling from the wave of collapses. Basically wondering every day when you go, what's going to happen? and what's going to which uh uh other institution is going to fall apart if there's another institution that's going to fall apart. So you have this kind of uh stunned period and at the same time this kind of disbelief and at the same time it's like what's next. She says he and his wife have tried to come up with a fallback plan but they do not want to leave New York where She says a simple walk among iconic sites and people from everywhere is an instant cure for gloom. And despite the harder times and budget cuts ahead, city leaders promise that keeping New York's streets beautiful and safe will remain a top priority. Carolyn Weaver, VA News, New York.
US To Buy Up To $250 Billion in Bank Stocks
VOA News
Transcript
stock markets in Europe and Asia Advanced for a second straight day Tuesday after Wall Street rallied from its worst week ever trading was brisk at the New York Stock Exchange but the market lost ground as investors took profits still confidence appeared to be returning to financial markets after the US government announced plans to buy shares in private Banks treasury secretary Henry pson said although government ownership is objectionable to some the alternative is far worse today we are taking decisive actions to protect the US economy we regret having to take these actions today's actions are not what we ever wanteded to do but today's actions are what we must do to restore confidence in our financial system the $250 billion allocated to buy Preferred Bank shares would come from the bush administration's Financial rescue package nine US banks are initially taking part but pson says government conditions will apply institutions that sell shares to the government will accept restrictions on executive compensation including a clawback provision and a ban on Golden parachutes During the period the treasury holds Equity issued through this program the US plan follows similar actions by European governments which recently pledged about $2 trillion to rescue their own Banks like the European plan president bch said the initiative will help th Frozen credit markets and encourage Banks to start lending again this new capital will help healthy Banks continue making loans to businesses and consumers and this new capital will help struggling Banks fill the hole created by losses during the financial crisis so they can resume lending and help spur job creation and economic growth although most investors welcomed the plan some were cautious New York Trader Alan valdis says markets could remain volatile for some time you know in 29 9 after the crash we had rallies in 87 after the crash we had rallies only for them to implode and come back down so Traders aren't buying this 100% yet besides injecting billions of dollars into US Banks the initiative also provides guarantees for new debts as well as expanded deposit protection for small business accounts the government is also encouraging Banks to work with homeowners to reduce the number of foreclosures Mill arga vaa News I
Domestic Debate - Economic Plan: Why is your economic pla...
C-SPAN
Transcript
another Very Bad Day on Wall Street as both of you know both of you proposed new plans this week to address the uh economic crisis Senator McCain you proposed a $52 billion plan that includes new tax cuts on capital gains tax breaks for seniors white offs for stock losses among other things Senator Obama you proposed $60 billion in tax cuts for middle inome and lower income people more tax breaks to create jobs new spending for public Works projects to create create jobs I will ask both of you why is your plan better than his Senator McCain you go first well let let me say Bob thank you and thanks to HRA and by the way uh our beloved Nancy Reagan is in the hospital tonight our thoughts and prayers are going with you it's good to see you again Senator Obama uh Americans are hurting right now and they're angry they're hurting and they're angry they're in innocent victims of greed and excess on Wall Street and as well as Washington DC and they're angry and they have every reason to be angry and they want this country to go in a New Direction and there elements of my proposal that you just outlined which I won't repeat but we also have to have a short-term fix in my view and long-term fixes let me just talk to you about one of the short-term fixes the Catalyst for this housing crisis was the vny and Freddy May that caused subprime lending situation that now caused the housing market in America to collapse I am convinced that until we reverse this continued decline in home ownership and put a floor under it and so that people have not only the hope and belief they can stay in their homes and realize the American dream but that value will come up now we have ocated $750 billion let's take 300 of that billion and go in and buy those home loan mortgages and negotiate with those people in their homes 11 million homes or more so that they can afford to pay the mortgage stay in their home now I know the criticism of this what about the the citizen that stayed in their homes that that uh that paid their mortgage payments it doesn't help that person in their home if the if the next door neighbor's house is abandoned and so we've got to reverse this we ought to put the homeowners first and I am disappointed that secretary Paulson and others have not made that their first priority all right Senator Obama well uh first of all I want to thank hop hopster University and the people of New York for hosting us tonight and it's wonderful to join Senator McCain again and thank you Bob uh I think everybody understands at this point that we are experiencing the worst financial crisis since the Great Depression R and uh the financial rescue plan that Senator McCain and I supported uh is a important First Step uh and I pushed for some core principles making sure the taxpayers can get their money back uh if they're putting money up making sure that CEOs are not enriching themselves through this process and I think that it's going to take some time uh to work itself out but what we haven't yet seen is a rescue package for the middle class because the fundamentals of the economy were weak even before uh this latest crisis so I've proposed four specific things that I think can help number one let's focus on jobs I want to end the tax breaks for companies that are shipping jobs overseas and provide a tax credit for every company that's creating a job right here in America number two Let's help families right away by providing them a tax cut a middle class tax cut for people making less than $200,000 and let's allow them to access their IRA a accounts without penalty if they're experiencing a crisis uh now Senator McKay and I agree uh with your idea that we've got to help homeowners that's why we included in the financial package a a proposal to get uh homeowners in a position where they can renegotiate their mortgages I disagree with Senator McCain in how to do it because the way Senator McCain has designed his plan it could be a giveaway to Banks if we're buying full price for mortgages that now are worth a lot less and we don't want to waste taxpayer money and we've got to get the financial uh uh package working much quicker than it's been working last point I want to make though uh we've got some long-term challenges in this economy that have to be dealt with we've got to fix our energy policy that's giving our wealth away we've got to fix our Health Care system and we've got to invest in our education system for every young person to be able to learn all right and would you like to ask him a question uh no uh I would like to mention that a couple of days ago Senator Obama was out in Ohio and he had an encounter with a guy who's a plumber name is Joe werzberger uh Joe wants to buy the business that he's been in for all these years work 10 12 hours a day and he wanted to buy the business but he looked at your tax plan and he saw that he was going to pay much higher taxes you were going to put him in a higher tax bracket which was going to increase his taxes which was going to cause him not to be able to employ people which Joe was trying to realize the American dream now senat Obama talks about the very very rich Joe I want to tell you I'll not only help that you buy that business that you worked your whole life for and be able and I'll keep your taxes low and I'll provide available and affordable health care for you and your employees and I will not have I will not stand for a a tax increase on small business income 50% of small business income tax is RA it taxes are paid by small businesses that's 16 million jobs in America and what you want to do to Joe the plumber and man more like him is have their taxes increased and not be able to realize the American dream of owning their own business that's what Joe believes the he's been watching some ads of Senator McCain let me tell you what I'm actually going to do um uh I think tax policy is a major difference between Senator McCain and myself uh and we both want to cut taxes the difference is who we want to cut taxes for now Senator McCain the centerpiece of his economic proposal is to provide $200 billion in additional tax breaks to some of the wealthiest corporations in America uh Exon Mobile and other oil companies for example would get an additional $4 billion in tax breaks what I've said is I want to provide a tax cut for 95% of working Americans 95% if you make more if you make less than A4 million dollar a year then you will not see your income tax go up your capital gains tax go up your payroll tax not one dime and 95% of Working Families 95% of you out there will get a tax cut in fact uh independent studies have looked at our respective plans and have concluded that I provide three times the amount of tax relief to middle class families than Senator McCain does now the conversation I had with Joe the plumber uh what I essentially said to him was 5 years ago when you weren't in a position to buy your business you needed a tax cut then and what I want to do is to make sure that the plumber the nurse the firefighter the teacher the young entrepreneur who doesn't yet have money I want to give them a tax break now and that requires us to make some important choices last point I'll make about small businesses not only uh do 98% of small businesses make less than $250,000 but I also want to give them additional tax breaks because they are the drivers of the economy they produce the most jobs you know what Senator Obama ended up his conversation with Joe the plumber we need to spread the wealth around in other words we're going to take Joe's money give it to Senator Obama and let him spread the wealth around I want Joe the plumber to spread that wealth around you told him me want to spread the the wealth around the whole premise behind Senator Obama's plans are class Warfare let's spread the wealth around I want small businesses and by the way the small businesses that we're talking about that would receive an increase in their taxes right now who why would you want to increase anybody's taxes right now why would you want to do that anyone anyone in America when we have such a tough time when these small business people like Joe the plumber are going to create jobs unless you take that money from him and spread the wealth around I'm not going to we're not going to do that my Administration if I can answer the question uh number one uh I want to cut taxes for 95% of Americans now it is true that my friend and supporter Warren Buffett for example could afford to pay a little more in taxes talk about in order to give in order to give additional tax cuts to Joe the plumber before he was at the point where he could make $250,000 I think Exon Mobile which made $12 billion record profits over the last several quarters they can afford to pay a little more so that ordinary families who are hurting out there they they're trying to figure out how they're going to afford food how they're going to save for their kids college education they need a break so look nobody likes taxes I would prefer that none of us had to play taxes including myself but ultimately we've got to pay for the core Investments that make this economy strong and nobody likes taxes let's not raise anybody's taxes a little the fact is that businesses in America today are paying the second highest tax rate of anywhere in the world our tax rates for business in America is 35% Ireland it's 11% where are companies going to go where they can create jobs and where they can do best in business we need to cut the business tax rate in America we need to encourage business now of all times in America we need to cut people's taxes we need to encourage business create jobs not spread the wealth around all right let let's go to another topic it's related so if you have other things you want to