tv Countdown to the Closing Bell With Liz Claman FOX Business October 15, 2015 3:00pm-4:01pm EDT
do you believe what she says? trish: i don't believe it. of course, i don't believe what any politician says, right. that's part of the challenge she faces right now. this flip-flopping issue, we saw it with mitt romney, voters didn't trust him. that's the issue that hillary clinton is going to face in this election cycle. how much do you trust her? liz claman, over to you. liz: trish thank you, live from washington, d.c., u.s. stocks on track to snap a two-day losing streak. the dow, the s&p and the nasdaq are all higher for the week and trading above key psychological levels today. look at dow above 17,000. the s&p 500 above 2,000. that coupled with initial jobless claims have come out today, always thursday every week, fell to a four decade low. that is good news. we got positive earnings from citigroup, the street seems happy with that data. the markets, however, aren't showing it, but high anxiety
swirling in the nation's capital. hours ago, the treasury sending a flare up into the sky over congress. government is going to run out of money two days sooner than we originally thought. that creating fears of another government shutdown and default on the debt which has never happened in the history of the united states of america. treasury secretary jack lew breaking the news today in a letter to congress telling our nation's leaders they have only 18 days to raise the so-called debt ceiling. the new date, november 3rd. that date taking on more significance, it is five days after the house is expected to vote on the new speaker replacement for john boehner, but there's no name floated for sure right now. a leadership position that the house gop doesn't even have a candidate for at this moment. i talked to jack lew today about the debt ceiling move and much, much more in a fox business exclusive interview. that's why we're here in washington, d.c. today.
the interview coming up at 4:00 p.m. eastern. you need to hear what could possibly happen to your social security checks. your medicare reimbursements, veterans checks and defaulting on the debt possibly? all that coming up at 4:00 p.m. eastern. meanwhile, one 2016 presidential candidate has a fix for the nation's debt problem. ohio governor john kasich rolling out plan to balance the budget. something he helped do when he was the house budget chairman during the clinton administration. arguably the most experienced in doing something like that. fox business anchor bret baier to break down the action plan, it balances the budget in eight years while cutting taxes and reforming entitlements. and the long war gets longer as president obama shifts on how many troops to keep in afghanistan. we have general bob scales with the situation report. we're live with less than an hour to the closing bell. a lot going on this.
is a really important location to be at. glad you are with us. let's start the "countdown." . liz: breaking news, we've got oil on a slippery slope, and it is moving downward. nymex crude falling for a fourth day in a row, the longest losing streak in 2 1/2 months after the eia, the energy administration reported a much bigger supply build of 7.65 million barrels versus the expected 2.85 million barrels. more supply, the price goes down. we are oversupplied. there's a glut. now we need to get to this, we are more quickly than expected approaching the debt ceiling. that's when the government runs out of cash to pay bills and obligations. treasury secretary, this is a little history for you, throughout the years have called it doomsday. what is the worst-case scenario? well, the worst-case scenario is that the u.s. government defaults on debt interest
payments. many republicans say the only way we should raise the debt ceiling is to pair it or couple it with spending cuts. you know that's actually been done occasionally over the years, but most years to avoid massive turbulence automatically raised without conditions, no strings attached. but now coming more quickly than expected. treasury secretary jack lew penned a letter to congress this morning. he said that the debt ceiling will be hit november 3rd. it was just october 1st he said we hit it november 5th, the previous estimate. why the increase? he warned the u.s. government would not be able to meet most obligations without the debt ceiling moved higher and only congress can do that. he writes, the government makes approximately 80 million payments a month. can you imagine having 80 million bills? 80 million payments including social security, veterans benefits, military salaries, medicare reimbursements, many others in the absence of congressional action treasury
would be unable to satisfy all of these obligations for the first time in the history of the united states. how serious is this? i'm joined by former congressman heath hookstra along with donald maren, former member of the president's council of economic adviser. don, the ceo yesterday, and they're bipartisan, correct? >> nonpartisan. liz: nonpartisan. in the best of days, they don't care which side, they're telling what they feel is the truth. they completely validated what treasury secretary lew is saying, we're going to hit this thing and better raise it or there could be serious dislocations, do you believe that's true? >> absolutely. the fuel light started flashing in march when we hit the debt limit. jack lew is telling you we're running on fumes. in the first half of november we run out of money. we won't be able to pay our bills. social security beneficiaries,
medicare doctors, veteran, someone won't be paid on time. liz: when congress says and particularly perhaps the freedom caucus or far right of congress says, you know what, we want this paired with certain cuts. what do you say to that? >> the politics of these things are often just raised automatically because most of the decisions have already been made. this is money we owe, not something that will affect new spending decisions. occasionally overtime linked to policies to rein in spending or raise revenues, and really the challenge is how do you build a political coalition so enough members of congress are not willing to vote yea and whether that will require significant changes or not. liz: you are sitting next to a man that michigan, republican, did you vote to raise the debt limit. >> i'm sure i voted to raise the debt limit on occasion, probably a couple times i voted against it. typically what will be happen is a paring of things that come
together. that is frequently the case over the last years, it's one of the leverage points that congress, especially republican congress has with a democratic president. liz: this president and this treasury secretary have in the past said no negotiation. raise this thing cleanly and deal with the budget on a different day. that's not what the debt ceiling is for. it's to pay obligations that congress voted upon and put in a budget already. >> that's an interesting comment, but what you now have is they need an omnibus bill to fund the government. they're going to reach that point later this month. they've got the debt ceiling, they have lots of. haven't passed any appropriations bills. this is the time when you see policy changes. this is the leverage that congress has to influence that and make it happen. >> don's been in a different position, do you think it's fair to use that as leverage? i think the american public doesn't have a great grasp what it would feel like to hit the debt ceiling.
what would it feel like to the average person right now is. >> russian roulette. treasury has 80 million bills to pay and it's going to have process, possibly random, possibly thought through who gets paid and who doesn't. there are families or businesses or states that are owed money for the federal government or expecting it. if we don't raise the debt limit, they are not going to get the money and be delayed. the spending obligation doesn't go away, social security beneficiaries still deserve their money, but might get it a week or two weeks late. liz: can you give me an honest answer, can we prioritize, pay the bill, interest on the actual debt, if you default, here's what happens, folks, you lose your credit rating, you get downgraded. we got so close. >> already downgraded. liz: 2011, s&p downgraded us by a notch. that never happened. we survived. >> the prioritization debate there are two computer systems, one for paying the debts, one for everything else.
most people think that the treasury secretary would move heaven and earth to keep paying the debt. if you default on that you have real problems. we had a taste of that in 1979, accidentally defaulted on small piece of the debt as part of a debt limit showdown. interest rates skyrocketed. not a place you want to go. liz: not a place you want to go, what happened then? dick gephardt put in the gephardt rule, from 79-85 we hit the debt ceiling. you're a republican from michigan, do you believe this congress are being a little too intransigent or stand with them to ask for more cuts to be pare paired with the debt ceiling hike. >> you can't put the blame on one group and not the other. the bottom line is for much of this president's term in office they haven't been able to build the relationship between the
president and house republicans and senate republicans to actually get things done. i'm a republican, you're right, from michigan. best time i had in washington was when newt gingrich was our speaker and bill clinton was president because they loved the art of politics. they loved the negotiations, they loved getting to a deal. they loved compromise, what politics is all about, and today those are all bad words. >> i understand when you say it's not just a democrat or republican thing but democrats vote to raise the debt limit. republicans are the ones who are a bit more stuck in the mud about it for what they feel are very important reasons. who will the public blame if we see a government shutdown or default? >> history has proven that clearly. they will blame house republicans for that, and they'll hold the house republicans accountable. i hope we don't get to that, you know, they've got 18 days to work through the process and get to an agreement. it would be best for the economy, best for the country
if america actually saw washington get something done and not continue to be dysfunctional. liz: i really appreciate both of you coming on, it's a great perspective, representative hoekstra, former, good to see you, and donald marron, former cbo chief. appreciate it. >> thank you. liz: as we watch all of this, we need to remind you you're going to get it straight from the horse's mouth. i sit down on a fox business exclusive on a crucial day, he sent the letter to congress. secretary jack lew of the treasury. i ask him, do you have plans to devalue what is a very strong dollar, which we know from companies like walmart yesterday, it's affecting earnings negatively. walmart is not the only one. wait until you hear what he says about that, the debt ceiling, jack lew the only network he agreed to sit down with today. please sit down for the exclusive interview top of the hour on "after the bell."
president obama backing down on a drawdown. the long war in afghanistan no closer to conclusion. we have general bob scales assessing the president's latest military maneuver. live from washington, d.c. "countdown to the closing bell" is coming right back, and we've got a pretty decent rally. dow industrials up 176 points. s&p jumping by 24.
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hurry, ends sunday! know better sleep with sleep number. . liz: with 44 minutes left until the closing bell. look at the dow jones industrials. possibly snapping a two-day losing streak. the dow up 190 points, high of the session, 196. what do we like about this? we have a better number from citigroup which i mentioned at the top of the show and the usual belief we might not see an interest rate tightening this year. you never know which day that's a good news piece of news or bad news, investors and traders are strange. investors are pausing and pressing the pause button on the stock, everyone loves to love or loves to hate. netflix, a big momentum stock dropping 8.5% at this hour. shocking the street after the bell yesterday reporting weaker
than expected subscriber growth last quarter. the companblamed it on the numbers on the switch to chip-based credit cards of all things but says long-term, netflix growth story remains the same. they're doing creative things coming up with original programming, watching netflix right now. another setback in president obama's efforts to untangled u.s. from more than a decade of war in afghanistan. the president had to scrap the plan to withdraw the majority of u.s. troops from afghanistan totally. that's changed to combat the growing threat of the taliban which recently reared its ugly head. 5500 troops will remain in afghanistan in 2017. just to give you perspective right now, there are 9800 troops in the country at the moment. fox news white house correspondent kevin corke outside the without right now, and this is causing waves definitely, kevin? >> reporter: no question about
it, liz, the white house will push back obviously. he came into office and moved it down from 100 grand to 10 grand. that's great movement, great progress and they will ultimately end up leaving office with as you point out 5500 american forces remaining in and around afghanistan. but keep this in mind, as we look at that number, recognize this important statistic. they wanted to leave about 1000 troops around kabul, that won't happen because of conditions on the ground. senator john mccain among the many talking about this today, he is saying in a statement, quote, 5500 troops will only be adequate to conduct either the counterterrorism or the train and advise mission but not both. our military commanders have said that both are critical to prevent afghanistan from spiraling into chaos. i ask white house press secretary josh earnest about that today and said in particular, what does the president say to supporters very much against this long war
continuing now 14 years out. here's what he had to say, liz. >> what did the president say to them about once again, despite his best intentions, not being able to deliver? >> i think the president would say he has delivered. and making progress in afghanistan and making the united states of america and our citizens safer. >> reporter: okay. he said progress there, right? but i don't recall the president saying in a campaign promise i promise progress in afghanistan. he said i promise to end the wars in afghanistan and iraq. again, to be fair, they have made progress but not an end and i should point this out quickly, liz, because conditions on the ground continue to deteriorate, you have the taliban very active to say nothing of isis and other groups, doesn't look like it's going to end any time soon. liz: kevin, you and i have been in news for a long time. how many times have we heard anchors whether it was peter
jennings back in the day, dan rather, tom brokaw, starting with a newscast on another stumbling block to the road to peace in the middle east. a very tough situation. kevin, thank you very much. here is 30-year army veteran and fox news military analyst general bob scales who has real opinions on this. okay, it's one thing to say i'm pulling everybody out by such and such a date. then have you people on both sides saying you've got to stay there because if you leave, you pull out the and you having destabilize things, what do you think? >> there's an old saying in the military call ground troops. the enemy has a vote and facts on the ground dictate politics at the end of the day, and several things have happened in the last year. one is a terrible performance of the afghans in kunduz city over two months. secondly, all of a sudden isis is in afghanistan and killing other afghans as well as going after government forces, and the third thing, most important, little inside
baseball for you, the campaign season in iraq ends in october because of the snows and begins in april. and worst message can you send to the enemy and friends alike at the very time the taliban starts to ramp up the war, we pack up in our airplanes and fly home. what a terrible psychological blow that would be to the region. for those three reasons, the president very reluctantly has decided to dial it back, keep troops in the region for the foreseeable future. liz: okay, is it a decision you as a military man understand what the president's doing? >> i do, i do. remember, liz, we call it the long war for a reason. liz: 14 years now. >> but you know it could go another 10. who knows? the enemy has a vote. at the end of the day it's the taliban and the relationship with afghanistan, they're going to determine whether or not we go or statement the good news is the american effort is
limited to advise and assist killing bad guys is technical supports, logistics, communications, command and control, after 13 years of war, the afghanistan army hasn't gotten down right yet >> we were talking about the debt ceiling, we're supposed to hit it november 3rd. that's 15 days away. this is absolutely crazy at this point. or 18 days. as a military guy who depends on funding, do you feel congress should raise the debt limit? >> i just don't think there's any choice. my goodness, you know what this is going to cost? this alone will cost 14 billion dollars. by the way, that's above and beyond a very restricted defense budget of 550 billion dollars. we have an army going down 13% in two years and been asked to do the additional missions not only here but in the rest of the middle east? and the army's driving around in 40-year-old equipment.
no, the day eventually can you pay us now or pay us later. my view is that as the middle east falls apart, as the president's policy begins to fail, sadly the only solution is to ramp up our game and get on with it and that, as you know, costs money. liz: yes, it does. general bob scales, great to have you. >> thank you, liz. liz: nice to you have in person here. >> great to see you. liz: we're always talking via remote. i need to come to d.c. more often. schmooze a little bit. thank you very much, the closing bell ringing in 37 minutes. charlie gasparino with two stories everyone is talking about. first will walmart and the new york stock exchange face investor fury and action over yesterday's mishandling of the largest retailer's disastrous earnings that has terrible timing when released? and bill ackman made billions on risky investments but will his latest bet who
will take the oval office next year, will that pay off? charlie breaks it, coming up next. and tesla rolls out auto pilot software allowing model s owners to simply let go of the steering wheel. but is american and american roads ready for it? tell us why you think the nation is or is not ready for self-driving vehicles, autopilot. general scales is going to follow me on twitter after the show. look at the dow, now at session highs again, up 205 points. don't go away. awe believe active management can protect capital long term.
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apparently yes, and it's getting a ton of attention, and we're looking at what they're talking about. today, the excitement and anxiety are running high not just in washington, d.c., but as tesla rolls out autopilot software. what does this do? it makes update to the only thing standing between model s owners and putting steering and changing lanes in their rearview mirror. so you just sit back and eat your power bar and drink your coffee and do your eye liner. oh, i speak from experience. tesla stock, take a look, trading up one third, is that one-third of a percent? yeah, 1.63%. walmart is falling further today, following the company's historic loss yesterday. the stock experienced biggest loss in 27 years, and now some investors are saying they're actually maybe grounds for
legal action as to what triggered that. fox business senior correspondent charlie gasparino here with the exclusive story, and let's just for a moment explain to people who might not have been around yesterday, walmart dumped bad news on the markets. >> at 10:30 a.m., approximately 10:30, tell the markets they're going to have a really bad 2017. a couple of details. the markets tanked. let's go through what happened before that. this is where the market is interesting as a potential investor lawsuit, class-action lawsuit. on tuesday, walmart meets with the new york stock exchange and talking about investor conference. it happened at the new york stock exchange wednesday. and they alert them what they're going to say, walmart and the new york stock exchange. decide not to halt the stock, why would you halt the stock? simple reason, up to the give all investors the opportunity to sell or not sell when all the information is coming out. not just to people at conference. walmart, the new york stock
exchange don't want to halt the stock, they don't say anything about it, don't tell them to preannounce, nothing. the ceo goes on cnbc, crickets, largely crickets, people buy the stock after cnbc. liz: why, charlie? they thought he was giving good news on a business network, right? >> yeah, they thought whatever he was going to announce would mirror what he told cnbc, and they didn't realize the cnbc reporters didn't push enough what he might announce. that doesn't matter. people bought the stock and bingo you have this issue where he comes out with blockbuster news about 2017 being a lousy year for walmart, for all the reasons that's in the press today, and the stock craters more than 10%. i believe today is an upday in the market. the last i looked at walmart, it's down again. liz: down more than a percent, and one thing, charlie, on a day the broader market is rocketing higher. >> right.
we've asked the walmart ceo and the new york stock exchange why they didn't halt the stock? we're not getting good answers from them. i've been speaking to investors and analysts all day today. they say it's highly likely they're going to get sued on a class-action, not being forthcoming with investors. here's the rub, if they halted the stocks right? say you halted at the open, right? you know news is pending that's going to come out that can move the stock, and you know when you announce that news everybody gets it at once, right? what really happened the other day is they made the announcement inside this investor conference, and people might have been covering it. might have been reporters covering it. but the people in the conference, the investors got first dib on the news. you as the average investor get screwed, not the professional trader. if you look at the post-enron loss, sarbanes/oxley, there is all sorts of stuff about the
disclosure of information, windily and kindly to investors. liz: 22 billion dollars clipped off the market cap. can i shift to bill ackman? our favorite billionaire to watch and discuss because he's always giving us some very interesting perspectives and news. what is it today? >> not a market perspective today. bill ackman in a conference in new york city. the mfa, managed funds association conference this morning, he point-blank said he believes mike bloomberg will run for president in 2017. this is his prediction. he thinks that bloomberg will run as an independent. he believes he's going to make this announcement sometime in the first quarter of 2017. so sometime next year -- liz: you're talking 16, 2016. >> 16, right, right, right. liz: there ain't no presidential election in 17.
>> where is my head these days? liz: it's okay, i've got your back. >> thank you, he's going to announce it sometime next year in the first quarter, and by the way, the banner is right so i don't have to go nuts when i leave the set. liz: charlie, thank you. >> he didn't say how he knows this. and make two points here. bloomberg has no comment. we asked ackman's spokesman for a comment, no comment. i spoke to someone who speaks to mike, mr. bloomberg regularly and hasn't heard anything. this may be ackman wanting to draft bloomberg. liz: okay. i want to draft you. how about that? >> i want to draft you. good luck with the interview today. liz: thank you very much, 4:00 p.m. eastern, jack lew, the treasury secretary on a huge news day coming right out of treasury. it matter to your money 4:00 p.m. eastern. closing bell 26 minutes away, we have a rocking and rolling market. the russell up 21 points, the nasdaq pretty much at session highs.
s&p blasting through ceilings right and left. up 28 points. one 2016 has a plan to balance the budget, and he's done it before. this guy has experience. fox news's bret baier, he's not the one balancing the budget but he's here to dissect ohio governor's john kasich plan. nothing came out of the last five days of who they're going to put forth as the house speaker. we are live in the center of washington, d.c. "countdown to the closing bell" coming right back. [ male announcer ] some come here
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ohio governor john kasich rolling out the first major policy plan from his campaign tackling what he rested his reputation on, balancing the budget, he said the action plan would balance the budget in eight years partly by cutting taxes and reforming entitlement programs. he helped craft the last balanced federal budget as the house budget chairman nearly two decades ago, listen. >> i went to a meeting the other way where they said we could do it by 2030. too long. too much debt. within the first 100 days we will have that plan to balance the budget in eight years and to keep it balanced, i will start the process to amend our constitution to require washington to balance its budget every single year like states and like families in america. liz: joined now by fox news's anchor bret baier, he is
polling only 1%, and a lot of people on the street say i like kasich, he has a legit massey about him. why the discrepancy. >> welcome to washington by the way. liz: thank you for letting me here. >> it's our set, collective. >> some of the candidates are having success in new hampshire for example, or in iowa. one of the early states, but nationally, not really taking off. he didn't have a great debate last debate in california. he does have obviously the resume, as you talked about, the experience, and has a lot of time balancing a budget, not only on capitol hill but in ohio. i think that's translating on the trail, but not really nationally. liz: when you saw what he's rolled out here and says he can balance the budget in eight years by doing a couple of things, and everybody talks about slicing and dicing some of the spending and the entitlement programs, did it look like a plan that could get passed through a congress?
>> i think of the plans that is the most realistic. you have -- you have a scenario where there's a caucus here that the freedom caucus and others who have a real different view of things, and he would have to figure out a way to talk their language to get something like that through. he is pretty good at working on all sides. the question is could he steer this congress the way he led the charge for a balanced budget the last time he was here. liz: when we look at presidential candidates and most who have spoken out about the debt ceiling which we're about to hit november 3rd according to the treasury department. you know marco rubio voted twice against raising the debt ceiling, you have the carly fiorina and the john kasichs who say don't mess around with the debt ceiling, you can figure out a budget later but you've got to raise it. how important is that to voters right now? >> important in this
environment, in the republican caucus, the conservatives who have a lot of sway in iowa, in south carolina, in places like that, there is this sense that something has to happen. there has to be some pushback by republicans to what they feel is a runaway administration on a lot of issues. so using the debt ceiling as a leverage for something else, they feel is okay. others say don't even fool with it, it's not good for the economy. liz: before we let you go as you prepare for your show, governor scott walker who dropped out of the race was on record saying donald trump could well be the gop nominee. your thoughts? >> listen, you look at every poll, liz, he's not going down. he's sustaining or going up. he seems to be dialing back rhetoric in recent days, i don't know if that will stay the same. clearly he's going to be around for voting, and if he doesn't make a big stumble between now and then, he could have a
chance. liz: very interesting, thank you so much for joining us on our collective set here in washington, d.c. bret, thank you. >> and i'll see you later. liz: special report, i'm going be on with bret as a guest. fox news 6:00 p.m. eastern. closing bell, 16 minutes away, the dow was up 197 points, just off the highs, 219 points. the end of the fantasy? both the department of justice and the fbi are now investigating what apparently are darker realities of fantasy sports teams and betting. what will it mean for the booming and blooming multibillion dollar industry? we're going to break that down next. we're live from washington, d.c. "countdown to the closing bell" is coming right back. again, just now 14 minutes before that closing bell rings.
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. liz: you've got to point to the financial sector that's fueling this run. we had better-than-expected numbers from citigroup, so that is pushing the dow jones industrials now back up closer to session highs. we are up 210 points. we have a good nasdaq number, up 80 points. the decent percentage gain, there look at the dow up 210. the high of the session, 219. anything can happen in the next 11 minutes. the s&p is above the critical 2000 level, so what's leading the way? head to ashley webster. ashley, down at the new york stock exchange, i mentioned the financials, it's got to be a powerhouse. >> reporter: that's the driver, liz, interesting, maybe we're back into the bad news is good news situation, we found out that inflation, what inflation, remains suppressed. consumer price is up 2%.
another reason for the fed not to raise rates. there are the financials for you. goldman up 3%. citigroup reported this morning, doing just fine, thank you very much, up 4%. b of a up 3.5 and wells fargo up 2%. this is the sector leading the charge higher as you said, liz, the dow up 200 points, keeping an eye on netflix after the bell yesterday, got a weak third quarter report. didn't get the number of subscribers in the u.s. they wanted. that stock taking it on the chin today, down almost 8.5%. though a majority of analysts like the stock. what about nike, came out of the blocks flying, world's largest sportswear maker hitting an all-time high. they say revenue is set to move much higher, up by 63% by the year 2020, and look at that, up more than 2%. hitting an all-time high. as you n n n minutes before the closing bell.
still up over 200 points. can we hang onto it? that's the question. liz: and a shoutout to mcdonald's which hit an all-time high. >> another all-time high. liz: adding again to that, right, ash? >> all about the breakfast, all day! >> it's the hash browns, only at some locations, ashley, thank you, ashley webster. nine minutes away, can we hold these gains? we are watching it tick-by-tick, and, of course, the question will they or won't they in 2015? investors becoming less and less convinced. we could see a rate hike by year end. but what will a delay cost to your portfolio? we have had a lot of fed heads speaking today, one of them made some very important announcements. we're going to break it down next, coming up 4:00 p.m., "after the bell," my exclusive secretary jack lew on a day where he has told congress speed it up, folks, we're about to hit the debt ceiling, two
days sooner than originally thought. we're going to cover everything from thoughts about the impending debt ceiling deadline to the new face of the $10 bill. oh, wait a minute. don't get too upset. is there hope? is there a survival chance for alexander hamilton on the 10? you don't want to miss it. i've got it.
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awe believe active management can protect capital long term. active management can tap global insights. active management can seek to outperform. that's the power of active management. liz: if you think you're making good investment buying treasury bills. here's a question. are investor literally giving away their money for free? treasury bills sold at interest rate of zero since the financial crisis topped one trillion dollars this summer and grew again this week with auctions for three-month and one-month t-bills. why do investors feel they have no option and they just want to park their money there? joining me greg valliere, and stephen whiting, citi private bank global chief investment strategist. greg, doesn't seem to make a lot
of sense but is that how worried investors are they will say, here, zero percent, i can just park my money there? >> i think you're right, liz, great to see you. there is so much anxiety. could there be debt ceiling crisis? could there be a government shutdown? has the economy hit a pothole? with all anxiety people are willing to invest with virtually no return. liz: i suppose parking under mattress is not an option, stephen? there are other options. buying into a stock with a 3% dividend yield. i hesitate to say walmart. yesterday it tanked and cheaper than it was yesterday and day before. >> bear in mind what you said about t-bills. this is institutional issue. liquidity buffers institutional investors are required to v you can look at many institutions can't hold stacks of green paper. this is substantial issue while the federal funds rate is zero. this is not something many
individual investors go after. liz: okay, then when we talk about treasurys though, is that your recommendation? that money is better placed somewhere else than zero percent treasurys? >> we're neutral weight on treasurys, 10-year, 30-year. these are among the highest yields investors anywhere in the world can find. it is not appealing as a stand-alone asset. if you look back to the 10% correction we had in october for example, of last year, you had a 10% return in 30-year debt over same period. it is a risk hedge. it has value in a portfolio. we're otherwise underweight in most debt in the world and generally overweight equities. liz: greg, uncertainty and indecisiveness some of it pushed whether intentional by the federal reserve, today bill dudley of the new york fed coming out and saying, i still believe unless we get horrific
u.s. data, those weren't his words, those were mine, if we get decent data between now and end of the year we should see rate tightening. are they just saying that? what is your assessment with your expertise, greg? >> it is just maddening you want to take dramamine. up down, we might tighten might not want to tighten. the fed has done a terrible job communicating. i'm usually a defender of the fed. think they confuse people with one day another number comes out. there is endless debate will they, won't they, we overanalyze every economic number, this will continue until mid-december. the fed is negative in the story us. because it is not clear. liz: steven, do you think congress pushes it to the last second about the debt ceiling situation? again 4:00 p.m. eastern, you will get a lot more clarity we hope from treasury secretary jack lew. that is when we have our exclusive sit-down.
you on wall street have different opinion hitting debt ceiling. in the past most of you guys i interview say, let's go up here and not fool around and sabotage our own country. is that your feeling? others say wait a minute, we have to find religion when it comes to being physically more responsible? >> it is modus operandi to run up to the last seconds. markets view u.s. default whether obligations or prioritizing interest payments or what have you, as potential real financial disaster, something that would provide huge restraint on the u.s. economy even if there were no technical default even though a short period. markets generally don't believe it will happen and they have been proven right. important to note, whatever the politics and whatever is needed fiscally you have to keep credibility for u.s. debt integrity. liz: we have to keep credibility because closing bell is about to ring.
thank you so much. i want to send it back to the new york. "countdown to the closing bell" is done. david, melissa, take it from here. david: you will stay close. melissa: liz, we will have your exclusive interview with treasury secretary jack lew coming up. david: the president backpedaling on his plans to withdraw troops in afghanistan. did he cry uncle with a wrestling match in the pentagon? [closing bell rings] dow closing up well over 1%, 218 as it settles. here is what is happening with all the various stocks today. melissa: here is where we end the day on major indices. look at nasdaq, up 1.8%. david: wow. melissa: almost 2% on the day. crude oil bouncing back. gold higher as well. david: while markets wait for tomorrow, here is everything you need to know right now. joining me with a big exclusive interview with treasury secretary jack lew our own liz claman. liz?