tv Situation Room With Wolf Blitzer CNN February 5, 2018 2:00pm-3:00pm PST
thanks to the panel. be sure to follow me online or tweet the show at the lead. wolf blitzer is as you would expect him to be, in "the situation room." breaking news. free fall. the worst single day loss in history. president trump has been claiming credit for it. so what he's saying about the record sell-off. president trump goes after democrats, slamming some of them as unamerican and treasonous. and labeling others as leakers and liars, along with some former intelligence. dooling documents. the house intelligence committee is about to vote on releasing
the democrat rebuttal. will the president approve its release? and provoking north korea. heading to south korea for the winter games on a mission to keep kim jong-un's propaganda in check. we want to welcome our viewers in the united states and around the world. i'm wolf blitzer. you're in "the situation room." the dow jones industrial average suffering its worst one day loss in history, losing more than 1,100 points and now down more than 1,800 in the last two trading sessions. the dramatic drop follows the record rise which president trump has repeatedly touted as a
result of his policies. from the house judiciary committee, she is about to join us live. let's begin with business correspondent richard. and covering the financial markets and the economy for years. first of all, what caused this dramatic 1,100 point drop today after the 666-point plummet on friday? >> continuing worries about interest rates, inflation, wage growth, and the future direction of the fed. which is also somewhat ironic considering it was the new chair's first day on the job. we saw that on friday as a result of the jobs report showing wages going up. and now everybody is asking just how quickly will interest rates go up and what the effect on that would be. now, wolf, does any of that
justify an 8% drop in the market since its all time high? no. except the way the market has risen to such dizzying heights. with the new ways of trading, this is inevitable. you will see volatility. so we saw the volatility index rise some 70 odd%. this volatility is back. >> the worst sent day point drop in the history of the markets. not necessarily the worst single day percentage drop by far. is this just a blip or does wall street fear this could be the beginning of a truly significant slide? >> as the saying goes, what goes up must go down. we have been anticipating a correction. at its peak, it has gone up 30% since he was inaugurated. remember, the stock market a forward looking indicator. there has been a lot of
anticipation with the tax cut. it was implemented. a lot of the stocks. 30 stocks. remember, wall street does not equal major street. while it may be confusing to say there's good news, wages going up on friday. that's not necessarily great news for wall street. we're starting to see the federal reserve speak more freely about raising interest rates and keeping inflation in check. the federal reserve has two mandates. keeping inflation in check is that keeping the unemployment rate down. during the financial crisis ten years ago, the federal reserve lowered interest rates to where they are right now. the economy, have been, has recovered. we've seen growth throughout the world really. the federal reserve needs more tools. if we have another financial crisis, they won't have anything to combat it with.
>> so the concern about inflation, is that a serious concern? >> richard was right to attribute the volatility to electronic trading which is why you see the huge drops within just a matter of minutes. but there is concern about the if he had raise go rates. you get used to a good thing, a 43 party. the federal reserve having interest rates at zero. you will see wallace reacting in ways we've seen today. and over the last week. we've been in the need in anticipating some sort of market correction. >> what are your two most important takeaways for your viewers right now? both those who do have money in the stock market and those who do not. >> if you don't need to do anything, don't. you're in this and it will play out. hopefully if you're in your older years, you've been
balancing more toward bonds. they had a good day. the yield went down. the price went up. the takeaway is simple. if you don't need to sell, don't. ride it out. this is a market for speculators, for momentum players. it is not a market that you play with once it is on fire like today. >> we're going to keep on top of this breaking story. thank you. also breaking this hour, some truly remarkable attacks on democrats by president trump using words like treasonous and unamerican. the president is truly lashing out at democratic members of the house and senate. >> the president is due to arrive from an event in ohio today. we'll see if he has any comments about this deep dive in the dow
today. you're right. the president has been continuing this barrage of attacks on the russia investigation and the democratic party. this time he's taking aim at adam schiff who wants to release his own memo on the russia probe. schiff would like to respond to the controversial memo that was declassified by the president last week but it is not at all clear that mr. trump will let that happen. he was praising the nunes memo and calling democrats treasonous. >> with the factory workers in ohio, president trump was turning the screws on his critics. >> did we catch them in the act or what? oh, did we catch them in the act. they are very embarrassed. they never thought they were going to get caught. we caught them.
we caught they will. so much fun. like the great sleuth. >> sounding at one point like democratic strongman saying that the democrats were not applauding him enough saying that was treasonous. >> they were like death. and unamerican. unamerican. somebody said treasonous. why not? can we call that treason? why not? i mean, they certainly didn't seem to love our country very much. >> president began by blasting the ranking democrat on the house intelligence committee adam schiff who is pushing to release his own memo sglang the fbi wanted to conduct surveillance on aides suspected of being in contact with the russians. trump said schiff is one of the biggest liars and leakers in washington.
schiff followed back accusing the president of tweeting false smears. the president didn't say whether he would declassify the memo with you he praised nunes saying he may someday be recognized as a great american hero for what he has exposed and had to endure. nunes spent part of the morning diminishing the role of george papadopoulos who was cited as part of the surveillance. >> if he was such a major figure, why didn't you get a warrant on him? if he was such a mental figure, you had nothing on him. he lied. as far as we can tell, never even had met with the president. >> but that's not true. as has been widely reported, he sat down with the president during the campaign. even fellow republicans are pushing back on it saying that
he's been vindicated. >> the memo has nothing to do with it. >> not to me. >> as for schiff -- >> the president will use the same mechanisms to go over that document just like the republican miami. he will take the same care. >> the president said he wanted to release the memo before he had even read it. back in ohio, the president was could n congratulating himself. >> there was nobody kneeling at the beginning of the super bowl. >> that after he was bragging about how he doesn't brag. >> i'm nonbraggadocious. >> one thing president was not bragging about was the stock market which was plummeting as
he was speaking about in ohio. you can see over at joint base andrews, the president is arriving back at his trip. there he is, back from his triple talking about his tax cut policies. within thing he was not talking about was the stock market and the way it had been roaring. the president, we should point out. he is keeping his eye on the financial markets. according to white house officials. a major correction on the stock market would not be welcomed where the president has said repeatedly, the healthy stock market was the result of his economic policies. this white house has been riding this wave ever sense the president came into office. down on wall street. and of course, the waves do crash. >> to be precise, the president spoke about the economy for about 45 minutes in cincinnati and never mentioned the stock
market dropped at all? is that right? >> reporter: he did not reference the stock market diving, no. he did not mention the dow diving during his remarks today. and that's why we're waiting to find out what he has to say about it. this is a very historic day on wall street. the president, on down to the white house press secretary in briefing after briefing, the president has been mentioning in news conference after news conference, they've been 200ing the performance of the stock market. a lot of people saying well, people aren't invested and perhaps their 401 kmpbls aren't as big as what people are dealing with in manhattan with their very large portfolios. so some have wondered whether there was a disconnect at the white house in terms of touting
of what was hooping wall street. that's why we're waiting outside on the south lawn to see if the president has some comment on it. what the president has to say about these markets moving would >> all right. thanks very much. now to capitol hill where the house intelligence committee is expected to vote soon on releasing a democratic memo defending the fbi against republican allegations. it used surveillance laws to target the trump campaign. let's go to manu. the white house won't commit to releasing. at least not yet. >> the house intelligence now meeting behind closed doors to decide whether or not to vote to release this democratic memo provides a rebuttal to that nunes memo there last week. a point by point rebuttal. roughly ten pages in sxlenlth several members going into the
meeting made it clear that they'll vote yes to release the memo and there will be enough votes to send this to president trump's desk. and then you'll have five days to decide whether or not to object to the release or allow it. this comes after last week's vote saying they had just been presented with it instead of allowing the house to review it in a classified setting. now they're ready to send it to be reviewed publicly pending the president's approval. now this comes as some members are raise go concerns about some of the president's remarks including criticisms of adam schiff. one person said this moments ago. >> you didn't like how he attacked schiff? >> no. it is unhelpful and uncalled for. this name calling has got to
stop. or else he has to be original. little again? with marco, okay, it was a good burn. but he's got to be more imaginative. if he's going to continue and he shouldn't. just kiddingest should not. but use better ones. >> so some discomfort from one republican member about the president's attacks against adam schiff. she also made it clear that she would support the release of the democratic memo as other republican does, going into this meeting. so wolf, the ultimate question is what the white house will do if the president agrees to allow this. or redakts this information that will kick the issue back to the house intelligence committee. so that's an open question about what they would do if the president decided he would not allow it to be released in full or in part. if the committee would have to
decide in a full house, to decide later this week. in a matter of moments to send this to the president's zpeks allow the declassification of the memo which rebuts the memo as something vindicated from the russia probe. >> we anticipate members. we'll have live coverage of that following this important meeting of the house intelligence committee. thank you very much. the congresswoman is joining us. thanks so much for joining us. ? thank you. >> a lot to go through. let me start with the plumpl go stock market. are you worried this could be a sign of bigger problems? >> i hope not. ask me about the constitution or technology. i would be better suited to
answer. >> let's talk about the president in ohio, he said democrats are attending a state of the union address. he said the democrats with treasonous for not applauding enough. >> i think that is that a athleticic and bizarre. i guess he thinks he is the use and if we don't applaud him, it has something to do with america. i went to the state of the union because bits the presidency. i did not vote for donald trump and i usually don't agree with him. but that doesn't mean that you should engage in wild applause for things that are false, a lot of what he said was untrue, or misguided. so it is a weird comment he's make go, i think. >> i wonder if the presidnt houngs treason is defined
against him. >> giving them aid and comfort. no person should be convicted of treason unless on the testimony of two witnesses to the same overt act or confession in open court. clearly, treason is a very specific crime. the punishment can be the death penalty. >> i don't think i'm worried about getting the death penalty for not clapping. let me put it that way. ? your come eegss are preparing to vote whether to send a democrat i can memo which is expected to claim, alleging surveillance abuses by the department of justice and the fbi. there's no way fong they'll
declassify. what if anything, for democrats and republicans who want it released, what can they do if the president chooses not to make it public? >> well, any member of the house can trays issue and they can release it. adam schiff did say that he wanted to make sure the law enforcement community had cleared the memo before it was released. of course, the major piece of it was classified. when the memo was released, that secret was blown. so having red the memo, it is copiously footnoted and very thorough. i'm not sure any of it would be kept from the public given the
republican memo was already released. >> the president clearly believes the nunes memo vindicated his xlams the russia investigation is a home. >> i think this is a side show in many respects. i think my colleague trey gowdy mentioned it yesterday. this has nothing to do with the russia probe mr. mueller is engaging in. i think it is of interest that the fisa court found not once but four times carter page was an agent of a foreign power. that's pretty significant. and of course, he was earlier an adviser to the trump campaign for foreign policy. that's not becoming but it is not really the russia probe that mr. mueller is engage in the so far as i'm aware. >> thank you for joining us.
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run by a friend of jim comey, had filed a foya to be able to get access to the internal investigations and they showed people frankly stunned at the fact that james comey was fired as he was by president trump. if you remember, the white house, sarah sanders, the president himself, all said that comey was fired because he lost the confidence and support of rank and file agents inside the fbi. the picture we get from these documents is the opposite. one thing we have is a quote from one of the e-mails that was obtained by law fair. from a special agent in charge of the phoenix office and he says, we all felt the pain associated with the loss of a leader who was fully engaged and took great pride in the organization and our employees. simply stated, director comey will be missed. far from losing confidence from among the troops at the fbi, what we're seeing in these
e-mails, over 100 pages, is people putting together books of letters from employees to be able to send to james comey because of the way this was handled. it certainly doesn't portray what sarah sanders said, even in her press conference, that she heard from, internally, inside the fbi. support for the president's actions. that's far from what these internal documents show us. right after the firing of comey, he set up this idea of doing a photo op. a speech at the fbi headquarters and it was scrapped. what they got was a sense this would not be welcome. >> and he was watching tv which was humiliating on this program. >> we'll get a lot more on this. thank you very much. evan perez, our justice correspondent. will the intelligence committee allow the democratic memo to be made public?
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our specialists. wasn't just today. 1175-point drop. on friday it dropped 666 points. more than 1,800 point dropped in the two last trading days. >> and a remind per wall street does not equal main street west got another positive jobs report. 88 straight days of jobs growth. wages finally started to go up. the logic being that people who have their wages go up, they'll be more likely to spend money. and then you see the federal reserve coming back and raise go interest rates. that's why we're seeing the big sell-off. we've had interest rates near zero. it was going to end at some point. a lot of it had been in anticipation of the tax cut. at its peak it was up 30% since
the president was inaugurated. we could have expected a market correction. we're seeing it now. the question is, how long will it continue? if it does continue for a number of days, will it have an impact on consumer confidence? >> there was no mention of the drop in the stock market. he didn't say anything as he was walking back in. they just put out a statement, the white house. and let me put it on the screen. the president's focus was on the long term fundamentals which remain exceptionally strong. the tax cuts and regulatory reforms will further enhance the u.s. economy and continue to increase prosperity for the american people. >> we were just talking about, remember john mccain said the fundamentals of our economy are strong and that got him in a lot of trouble when he was running for president.
i think he is hoist on his own petard here. the reporters at the white house are saying that he had been advised by outside advisers, don't keep talking about the stock market as a barometer of how well the economy is doing. except that he continued to do that. if you see a decline, the president has to find a way to explain and it the democrats will jump at this. they're going to say, this is an overheated economy that you didn't need a big corporate tax cut in the first place to do an economy that was already percolating pretty well. and as a result, the worry is inflation and this will be a long-term problem because of the president's tax cuts. so they'll take this and run with it. >> the verb you' visual was pre.
he was 200 touting the economy. you saw the dow dropping for 300, then 500, then 800. it dropped at one point, 15 hundred points before settling a drop of 1175. >> he was watching live and if i'm not mistaken, the 1500 was in the middle of his speech. any president would be aware of that dooflt to how much cable television he could not seems. live or via tape. live by the dow, die by the dow. when you make claims like if hillary clinton had won, the stock market would be down 50%, and you say things like we're adding trillions of dollars, look at the stock market. i think the quote from the white house is not wrong. as noted, there are some good strong fundamentals here.
when you have a president who, every time the dow goes up, see? but then when it goes down, you get more blame for it. >> i was going to say something else to keep in mind, today is the first day of the new fed chair jerome powell. could not ventionally, the president and the federal reserve are very independent of each of other and the president typically does not walk into the if he had's territory. so it will be interesting to see if there is any pressure. subtly or aggressively from his self-appointed, self-picked. >> as the president was speaking with the economy, he was complaining with during his state of the union address before the joint session of congress, democrats weren't applaud go enough. they were sitting on their hands. >> even on positive news, really positive news like that, they
were like death and unamerican. unamerican. somebody said treasonous. i guess, why not? can we call that treason? why not? >> how damage spg for the president of the united states to call democratic lawmakers treasonous and unamerican? >> strong rhetoric in our politics is nothing new. there comes a point when it is so toxic between politicians that you have to take a step back and ask yourself whether or not they can effectvely govern. i think with regard to politicians, we've already gotten to that point. what really bothers me right now is it is not just about strong rhetoric. our democratic institutions have been pulled into the mud slippinging. the president talked about it being nazis. when you have that toxic
rhetoric, it is going to take as you while to recover from that. so i think it is a dangerous thing and it has a negative effect. everybody stand by. we'll take a quick break and restoop conversation after this. 1, 2, 3, push! easy! easy! easy! (horn honking) alright! alright! we've all got places to go! we've all got places to go! washington crossing the delaware turnpike? surprising. what's not surprising? how much money sean saved by switching to geico. big man with a horn. fifteen minutes could save you fifteen percent or more. if you have moderate to severe or psoriatic arthritis, little things can be a big deal. that's why there's otezla. otezla is not an injection or a cream. it's a pill that treats differently.
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about the lack of applause. >> i'm not sure why anyone is surprised. and yet at the same time it's not normal. we've seen the same behavior from the other side of the aisle with other presidents. we've seen speakers say of the opposing party they don't want the president to be successful. this is unfortunately, the partisanship we've seen throughout the past 20, 30 years and it is growing even more so. so for the president to seem surprised or calling it treason us on. it is not very presidential to say the least. >> partisanship isn't treasonous. dissent isn't treasonous. i know his defenders will say he
was joking. you need to lighten up. i don't think it is funny to joke about treason equalling people not applauding for you when you think it is appropriate for them to applaud. think back to president obama's state of the unions when he touted the affordable care act. bringing many more people to the insurance rolls. lots of returns did not stand for that. why not? because they didn't believe the way -- they weren't against more people being covered. they didn't believe the way in which he did it was appropriate. that the government should have done it. the difference is president obama didn't say, you were all treasonous and unamerican for doing it. whether he is joking or not is totally beside the point. >> the word treasonous has suddenly erupted. we leader about it a few weeks ago when steve bannon in michael wolff's book is quoted as talking about the meeting at trump tower with trump jr. and
the gang as treasonous. and he ended up having to apologize for that and take it back. but he called that treasonous. now, the obvious reason he said that is because they were meeting with russians. so, but the president is saying that the democrats are treasonous for sitting on their hands? so it is just ridiculous. the fact the president would even say it. by the way, we're not paying attention to the other word. unmerge. unamerican. how is it unamerican to decide not to applaud something? >> the concerning thing is not necessarily that he said it, i think he believes, he views himself as the country. donald trump is the -- so if you don't cheer for donald trump, you're not cheering for the country which of course is not, that equation is never true with any president. >> listen, i agree with what's
being said. treason is a crime. for the president to accuse the democrats, i don't think anyone should take that lightly. >> it is happen during a time of ward. you aid the end me. you're treasonous. all right. everybody stand by. there's more brews. your insurance company won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance.
on the same day president trump called democrats unamerican and treasonous for not applauding his state of the union address, the vice president, mike pence, is on his way to south korea right now to represent the united states during the winter olympic games. the vice president also intends to emphasize the trump administration's hard-line attitude toward north korea. brian todd has more now on the vice president's plans. what are you hearing, brian? >> we're told by white house officials tonight that vice president pence is going to be on a mission to continue the trump administration's strategy of applying maximum pressure on kim jong-un and that pence is going to be doing that even while he's at the opening ceremonies. at the same time, secretary of state rex tillerson isn't entirely ruling out a possible meeting with north korean officials at the sidelines of the olympics. all of this collectively tonight could be making south korean official is much more nervous
about the prospects of an incident-free olympics with north korean athletes taking part. as kim jong-un prepares to send his skaters, female hockey players and skiers to the winter olympics, are signs tonight of growing tension on the korean peninsula. >> i think the south korean government is highly anxious and very nervous right now because they just want to have smooth olympics and there's a lot thrown into the mix. >> reporter: vice president mike pence will be at the olympic opening ceremonies in south korea on a mission, u.s. officials say, to keep kim jong-un's regime from capitalizing on kim's decision to send north korean athletes to the games. white house officials tell cnn that at every opportunity while he's there, pence will point out the repression of kim's regime, to keep the regime from hijacking the olympic message with, quote, propaganda. to hit home that point, pence will have a special guest with him during the opening ceremonies, fred warmbier, whose
son ougtto died after being released from north korean captivity last year. south korean officials have so far not commented on pence's planned messaging at the games. >> they're not going to really like the fact the vice president is coming from otto warmbier's father. i don't think south koreans are going to be too happy about that or they cannot say that out loud to the americans. >> adding to that tension, diplomatic sources tell cnn north korea will show off dozens of missiles on thursday as the games kick off, missiles capable of hitting the u.s. it's an attempt, sources tell cnn, to, quote, scare the hell out of the americans. analysts say as sanctions start to pinch kim, he may soon have to choose between paying for his nuclear and missile programs and buying off north korea's elites who help keep him in power. >> one thing that might well happen, and this is what happened under his father, is those resources shift away from the party and towards the
military. so the generals are kept in luxury and they are able to continue their military programs, but the party begins to wither because the resources simply aren't available. >> how are we going to know when sanctions are really pinching kim jong-un? analysts say look for signs that his elites are no longer flaunting tvs, the cars, the other luxury items that they have gotten in the past. that may be a sign that they're actually not getting those items. also when the prices of north korean corn and rice start to go up inside north korea and the value of north korean currency goes down on the black market, those will be signs that kim jong-un is really feeling the pain of sanctions. we can look for some of those signs in the coming months, wolf. >> thank you very much. there's more breaking news. stocks take a record dive on wall street, losing more than 1,100 points, so what's behind the historic loss? time to bask... in low prices!
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call, visit, or go to xfnitymobile.com. happening now, breaking news. nosedive, the dow plunges more than 1,100 points at the closing bell. a historic one-day loss, even as the president was out touting the strong economy. is this a short-term correction or possibly the start of a massive longer term sell-off. treasonous, that's the stunning term the president is using to attack democrats tonight. he's picking new fights over his opponents' reaction to his state of the union address as well as the russia investigation. pushing back. the house intelligence committee is deciding right now whether to release the democrats' rebuttal to a gop memo alleging fbi misconduct in the russia probe. even if l