tv Varney Company FOX Business January 19, 2017 9:00am-12:01pm EST
with great fondness. can that camaraderie come to washington between the democrats and republicans? do don:. >> that's the bottom line and we'll see if they get it. thank you as always a pleasure. >> a great show. >> awesome time. we'll see you tomorrow. "varney & company" is next, stuart take it away. stuart: thank you very much indeed. good morning, everyone. today is the buildup to the transfer of power. it is not going to be pretty and it's not going to be friendly, either. look at this, 68 house democrats now will boycott. the snno-snow list is growing. and thousands are showing up in d.c. to disrupt the nomination. it's personal. senators warren refused to shake hands with betsy devos, the pick for secretary of education. and demonstrating against the
school of choice offered by miss devos. that's the less. donald trump received something of a hero's welcome when he made a brief stop in d.c. his cabinet picks, tom price got through it and wilbur ross looked to be confirmed. two confirmation hearings coming up, both contentious. rick perry for energy, steven mnuchin for treasure and we'll see sean spicer hold his first news conference as mr. trump's press secretary. we're seeing two worlds colliding, the left, and mr. trump's supporters. "varney & company" is about to beg
begin. ♪ >> we do politics and we certainly do money. will you look at this? that's yesterday on netflix. what you're going to see this morning and netflix is a huge run-up for the stock. they turned out terrific numbers and liz, you've got them. >> capping the best quarter for netflix, up 36%, they're now in 190 countries and they had nearly 94 million subscribers worldwide. the projection, they will have 160 million customers by 2020. stuart: please ignore that thing on the left-hand side of the screen. netflix is going to open well above $140 per share. there you go. $142 per share, up, what, 8, 9%. liz: watch this, they're beating the s&p 500. that stock is up 28%. it could have a record open. stuart: you don't very often see stocks like netflix go up
that march. shah gilani said yesterday that they need to start delivering. they gave guidance. liz: they're doing what amazon did, plowing money back in. stuart: let's bring in an investor. and scott, quickly, would you buy netflix at $142. >> gosh, you know, i love e-mack's point, this is amazon maybe five years ago, so, yes, i would, but it will pull back. remember, earnings did-- netflix did nail earnings, and the stock did come in to investors, i expect the same thing, but netflix is higher in a year. stuart: i've got that and that's what i'm listening to. more for you later. a couple of signs of what might be interpreted as economic optimism this morning. housing starts in december, up more than 11%. plus, good numbers from manufacturing, what's called the mid atlantic region. kings college business professor, i'm taking that as a
modest sign of optimism for the future. >> small signs, but you need small signs. small signs need to big thing and you want to keep that into the new year when trump takes power. >> optimism, do you agree with that? two confirmation hearings coming up. former governor of texas, rick perry, he's for energy secretary. steve mnuchin for treasury secretary. brian, i'm going back to you. this is new and coming to us, i find this astonishing, we're told by the hill newspaper and washington examiner mr. trump is considering 10% across the board spending cuts, 20% virtually across the board, staff cuts. >> yeah. stuart: and saving of $10 trillion in ten years. whoa. >> he's talking about the right numbers. you have to know that the baseline projection is that debt goes up 10 trillion dollars over the next ten years, unless you do something like this you're not going to
get the cuts we need to get the budget under control. this is going to be controversi controversial. i think both of these nominees will be asked about this, steve mnuchin and rick perry. what they have to say could move the market later. okay. now, downtown the other side, the left. the list of democrats boycotting the inauguration growing. it's now at 68 and counting, all house democrats who are not attending. clearly it's not going to be a bipartisan celebration. rich lawrie is with us this morning. i think that the democrats are out on a limb here. i think they're undermining our democratic process. i think they lose and you say? >> i think it's stupid, ineffectual and john lewis got the ball rolling. turned out he didn't attend bush's inauguration in 2000 or 2004. during his congressional
career, he went to h.w. bush's and didn't go to any other republican inaugurations. you don't want the inauguration, celebrating the peaceful transfer of power a partisan event and that's what they're making it. stuart: 68 house members, i believe almost all of them come from very safe seats. so in 2018. they doesn't have a problem, despite what they're doing now. the democrat party, however, is different because they could be slimed by this brush that they're being tarred with during this inauguration. >> i think ding the whole transition position, the democrats have been hysterical and freaking out every single day and that's not good for them. opposition parties should oppose, i don't have any problem, they opposed the obamacare appeal and oppose spending cuts, that's fine. but the idea that trump is this unique threat to our reabout you believe that requires them going outside of norms and saying the electoral college should drum p them and we're not just going to sit there one afternoon and watch an
inauguration speech, i think not only is it shameful, it hurts them. stuart: i want you to see this. we picked up on this when we saw this videotape after the confirmation hearing for betsy devos, senator elizabeth warren would not shake hands even, no, no, just a wave. walked right on by, would not shake hands. i don't think you should be doing that kind of thing. >> it's completely graceless. and if you watch the full two minute video it's more striking every single senator shakes her hand. al franken shakes her hand and elizabeth warren gives her this blowoff wave. stuart: looks good in my opinion. i want to go to chicago, our own jeff flock is there because teachers in chicago and elsewhere, i believe, are protesting the devos pick for education secretary. rick-- jeff, i'm sorry, i have to ask, why are teachers in a failing school system protesting
someone who may bring some change? >> it's about the money, stuart. permit me to give the other side of the story, this is a protest going on right now at a school in a hispanic neighborhood. this is actually a charter school which betsy devos would be for. look at it. this is a former trucker's motel that's been turned into a charter school. to them, it's about the money, it's not so much about whether it's choice or public education, it's about the amount of funding that gets devoted to it. this is a charter school, even though it's a charter school, there is already layoffs carried out here it's about the money not about the structure. stuart: wait a second, are they saying if you've got a charter school, that diverts money from public schools, the teacher union-run public schools, therefore, school choice, and charter schools are bad. is that what they're saying? >> no, they like the idea of a charter school.
this is one that's an alternative to chicago public schools, specifically for kids that have dropped out previously, that have been difficult to educate. they like this idea. they are, though, concerned about the amount of funding that they get. whether it's a charter school or the public school, this is a group that would like to see a millionaire's tax in illinois. i know you don't like the idea, but their argument is that the funding isn't there no matter what structure the school takes. stuart: okay. jeff, we hear you. rich lawrie, still with me. what do you make of this? >> the urban schools in this country are a disgrace and betsy devos spent 30 years trying to improve them. i don't know the numbers in chicago, but in detroit, half almost the adults are functionally illiterate, that's a sign of disgrace and a sign of generational failure of the school system she's trying to reform and shake up and she gets this for her trouble.
stuart: if what you're seeing in chicago is about money, the point is if you give the teachers more money, a lot of it goes to the teacher's almost bankrupt pension fund. >> and barely 25% of students are ready for college. employers can't see people with the skills out there for the jobs out there. we should be talking about education reform not protesting because it's not enough money. stuart: we've got a big day in politics and i think a big day in money as well. we've got all of these, two big and contentious hearings coming up, you'll see them. we've got a sean spicer first ever press conference as press secretary. that's coming up and you will see that. look at this, this is how the market is going to open. ever so slightly lower. i'm going to say that the trump rally at this point is on hold, but what happens after the inauguration? who knows?
i'm not going to start forecasting the stock market for you. it's just a fraction lower today. just days before leaving office, get this, attorney general loretta lynch signing a secret order directing the nsa to share secret information with foreign governments. judge napolitano on that in just a moment. [vo] quickbooks introduces jeanette.
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>> whoa, it's a full plate and we've got it full for you today. two big events in d.c. in a couple of minutes, the incoming white house press secretary sean spicer gives his first news conference. you will see it live. 9:30 eastern. two more confirmation hearings on the hill at 9:30, and energy secretary nominee, former governor of texas, rick perry, and at 10 eastern, steven mnuchin treasury secretary nominee. you'll see it all. that will be contentious. that's politics, but look at this, money, look at netflix, it's going to soar at the
opening bell today. and an all-time high for sure. over $140 a share. you really don't see that very often with a company of that size. how about tesla? they're going to open higher. about, whoa, will you look at that, $10 higher. they've got an upgrade. is that the whole story? we'll see. they're going up at the opening bell. and this just coming to us, an avalanche has buried a hotel in central italy. ashley: yeah, 100 miles west of rome. a terrible combination of heavy, heavy snow and earthquake tremors triggered a avalanche that buried this hotel. at least 30 people were inside, 20 tourists and seven staff, including children here. and they can't get to it. six, seven feet of snow. they're taking helicopters in
there and people have walked out alive. and they're hoping that the hotel retained its infrastructure. stuart: earthquakes earlier and avalanche. coming to us, this is news to me, the judge has got it for us. attorney general loretta lynch signed a secret deal days before leaving office, ordering the nsa to give spying data to other federal agencies. judge napolitano brought us the story and what is going on? >> we don't know exactly what's going on. and if our friend at the new york times didn't have a source in the justice department we probably wouldn't know about the secret order, but on background. we all know, and we understand that the nsa spies on everybody all the time. every text message, every e-mail, every phone call, all digital data that flows overwhere in the united states gathers ostensibly for
intelligence purposes to see if there are plans or plots afoot to impair the national security for the united states. not for law enforcement, not looking for evidence of crimes, which is theoretically, i disagree with this, but this is the law and the way in which they gather it. now, mrs. livonia much said you can take that data and you can give it to the fbi, you can give it to the nunl state police, you can give it to the burgen county prosecutor, to mi-6 and mi-5 to anybody who needs it. stuart: you can give it to the british secret service. >> yes, she has removed the walls around this stuff. what does this do? this allows law enforcement to bypass the fourth amendment to acquire evident of criminal behavior without a search warrant from a judge based on probable cause, which has been the law of the land in the united states of america since 1791. stuart: knowing donald trump as
you do, do you think that he would reverse this, on day one of his administration? is he opposed to this kind of dissemination of the information? >> in the many conversation i've had with him about law enforcement. he did call and endorse the type of surveillance we now undergo during the campaign, but i believe when he did, he was talking about surveillance for national security purposes, not using national security as subterfuge to acquire evidence of criminal behavior in order to avoid the fourth amendment. two virtues to the fourth amendment, one, it forces the government to focus on people who are probably guilty because of the standard in there, probable cause of crime. so i'm at home, i'm sound asleep, i'm a judge in new jersey. sheriff calls me and say three state troopers got to see you in your living room right away. i'm in a t-shirt and gym shorts, and i handwrite out a
search warrant, without me and there are hundreds of thousands of judges that do this not just me, a personal example, without me as the intermediary inserted in there by the fourth amendment, nothing would prevent them from breaking down any door they wanted and seeking anything, until now. now, they can do it electronically, thanks to mrs. lynch's secret order. stuart: and this is just something that very recently signed in secret. >> signed it on january 2nd-- january 3rd, the new york times broke it over the weekend. stuart: that's three weeks before she leaves office. >> yes. stuart: she signed what amounts to-- >> why would barack obama. stuart: yes, why? >> who freed somebody like chelsea manning and this other guy, do something like this which is a frontal assault and civil liberties? i don't understand it. stuart: it's inexplicable. >> i don't know if the reporters who questioned him in his final press conference yesterday were aware of this
because i didn't hear any question about it. stuart: it's fascinating. i'm glad you pointed this to our attention, i was ignorant of this. i can see handing information to a foreign intelligence service friendly do you, britain, israel, i know you don't agree-- ments for national security purpose not law enforcement. law enforcement is totally different. judge, we'll see you soon, sir. >> yes. stuart: one day more until donald trump because the president, 45th president of the united states. sean spicer is about to hold his news conference as mr. trump's brand new press secretary. you'll watch that unfold before your very eyes in a couple of minutes. meantime, reports that mr. trump is ready to make dramatic, and i mean dramatic cuts in government spending. whole programs could be eliminated? wow, big news day. more varney after this. at ange
that's what happened, it collapsed. at least 25 firefighters now are missing and feared dead. this is a building, it's actually a commercial garment building and very little safety measures in place. in fact, they say that clothes were stored in the stairwells. when this thing caught fire, it was a disaster waiting to happen. stuart: events of that kind can reflect badly on the government of the day. often works that way. we'll see what happens there. according to media reports, president-elect trump is ready to take an ax, i mean an ax to government spending. specifically the departments of commerce and energy, as well as the departments of transportation, justice and state. all of them subject to major cuts. look who is here. this is right up the street, grover norquist, americans for tax reform president. i think they're talking 10%
across the board spending cut, 20% across the board staff reduction saving 10 trillion in ten years. ain't going to happen, is it? >> well, some things like it can happen. the ryan budget plan is a 10% phase out of government employment. the calvert legislation, these are pieces of legislation that predate trump, buts' talking about moving in the same directio as the publicans were, would reduce the numbe of government employees and civilian employees at the pentagon by about 100,000. so, there is a willingness in the house and the senate to dramatically reduce the number of government employees through attrition, but people leave every year and as long as you don't replace them, you do end up saving hundreds of billions of dollars. stuart: look, grover, when i first heard this, i thought, this is a pipe dream. i've heard this so many times before, we're going to get rid of this, going to get rid of that. it never happens. you never ever shrink government.
are you telling me, this time it's different? this time you can actually do it, really? >> two reasons, one is, we've developed a modern republican party in the house and the senate that's actually walked through this and repeatedly in the house voted for the ryan budget plan, which includes the 10% drop in employment. so in a congressman was worried it would hurt him in election, they've all been elected and reelected having stated they want today down size the government 10% at a minimum, in terms of employment. stuart: why am i only hearing about this now? it was reported in, i think the washington examiner and then in the hill. it came as a bolt out of the blue to me this morning. i would have thought this would have been a major plank in mr. trump's platform from way back. >> i know he's talked about trying to save money, but what right now you've got trump who ran for president and made a bunch of speeches about what he wants to do. he's now introduced to congressmen and senators who say you do know i've got a bill
that is very much like that. bills that congressmen and senators pushed for year, certainly not obama and certainly not clinton and sadly not bush, they weren't willing to make the decisions, trump said i'm open. a lot of guys who have had legislation, the calvert legislation to down size the civilian employment at the pentagon, which ryan endorsed before he was speaker and was a sponsor of is something that's likely to pass. stuart: you're the guy very much at the center of the tax debate. i wonder if you can tell us, when do we get tax reform legislation through the congress, signed by president trump. when do we get it? i'm hearing there's a delay and not happening until july or even august. what say you? >> no, i think it will pass by july, but it will be out there written down with trump and the house on the same page in the next 100 days. you have the trump plan and the house plan and they have been
moving towards each other for the the last eight months. trump did not have full expensing in his first bill and now he does. the republicans were at 25% corporate rate, now they're down to 20. the house has moved towards trump, trump has moved towards them and it's beginning to look like we have an agreement there. i think the senate, also, will find itself very comfortable with the dramatic rate reductions, individual, business, and self-employed, that both trump campaigned on and the house republicans have been supporting for quite some time. stuart: music to our ears. grover norquist. >> good stuff. stuart: it is, isn't it? they're concentrating on the left whining away and pretty good news on taxing cuts and spending-- >> that's why they're whining. these two stories are connected. stuart: that's right. grover, big day coming, we appreciate you being here.
we've got trump tower, that is-- that's a file video, that's not live, it's not just recent, that's sonny purdue, former governor of georgia, i think, yes, the former governor of georgia, officially nominated to be the agriculture secretary of the united states of america, that's just happened. bang! it's 9:30, the market is open and that's how we usually starts things up, bang, boom! here we go! i want to see netflix. liz: 143 about. stuart: netflix. ashley: 142. stuart: 142, $143 per share that's netflix, the stock of the day and it's going straight up this morning. let's-- all-time high for netflix. let's be clear here. they just turned in a stunning financial result. liz, am i right in saying that profits are up. the number of subscribers is . liz: that's correct. stuart: they're up on all fronts, bacally.
liz: the best quarter ever and capping the best year ever, so now you see the price targets being raised across the board, the number of wall street shops. they now have nearly 94 million customers. they added 7 million in the last quarter and doubled their performance in the third quarter. you know, netflix is moving higher on the theory that wall street is for giving it. it's the amazon model, plow the profits back into the bottom line. it's high cash burn. now they're moving into 190 countries. ashley: yeah, they added 5 million international subscribers. stuart: that's huge. ashley: blew past the estimates and room to move. stuart: scott come back with us, a market watcher. you were mentioning netflix earlier and we knew it was going to open sharply higher and asked if you would buy it at $142 per share. for the benefit of viewers just joining us, tell us, would you buy it at $142 a share? >> i'm going to wait for it to come back to me.
last quarter netflix did the same thing, they blew by estimates and came back as an investor a couple weeks later and i think that's the moral of the story. i love netflix going forward. i think you will have a chance to get it cheaper. stuart: scott, while we've got you here, it looks like the trump rally has stalled, gang busters ter the november 8 election and stalled just before christmas right below the 20,000 level. after the inauguration, what do we get? a selloff or another leg up for the rally? what's your opinion? >> i believe the market's going to base out here, stuart. let's call it about dow 19,700, 19,500. i think your point with mr. norquist was astute. the worry is with regards to tax policy. it feels like trump is softening maybe exactly what his tough talk was on tax reform, therefore, if there's any doubt that something doesn't get through or there's this tax reform in two pieces,
which has been talked about, steve moore talked about that yesterday on cavuto, which i hate to mention other shows on your perfect show. the market is reacting to what the tax policy could be if it's softer than what trump promised after he was president-elect. stuart: i think you've got it right. >> the policy uncertainty is driving the market side ways and i think you'll continue to see this. as policy pass and forward movement, i think you'll see the markets respond. stuart: we were hoping the first thing mr. trump would do is cut taxes, just do that. that's what ronald reagan did back in 1981 as i recall. but he didn't do that, he's gone for reforming and repealing obamacare first and going to have to spend time doing that. that's got some investors a little worried. you could many back in again, rich. about what grover norquist was saying. maybe july we'll get the tax cut bill signed, what say you? >> i think july is optimistic. if they can do it by july, that
would be a victory. it's a complex beast and you have so much special interest and business groups that care about this or that provision. if they can do it by july, it's a good schedule. stuart: it's more likely to be later, i can read between the lines. >> that's what happens, you set the deadline on capitol hill and you miss it, if you're close to it, that's good. stuart: what our viewers are looking at is the podi sean spicer will be appearing. the press secretary for mr. trump. i'm not sure he'll move the market. what he could do is tell us which executive orders mr. trump will sign and repeal immediately as he takes office. that could affect the markets. stuart: of course, mr. mnuchin, he could also-- treasury, his confirmation begins at 10:00 today. he could move the market. we know what he's going to say
in his opening statement. he's going to say the following, pushing a pro growth tax plan. he wants to slash the out of control government bureaucracy. he wants a trade policy that puts america first, and he wants to unleash american energy. now, we knew all of that, but he's going to repeat it at 10:00 this morning and then the democrats are going to have a go at him. and that could move the market. what do you say? >> mnuchin has always been my dark horse for a cabinet nominee that might have more trouble than people expect. the democrats are going to try to make the mortgage stuff into a massive scandal. at the least, it's difficult to understand and when you're in a position and explaining, you're kind of losing and he'll have a lot to explain. stuart: my problem for that, it's looking for dirt as opposed to criticizing the policy that he's going to bring in. >> exactly. and he's a policy question mark. the important part of the hearing is where does he stand on the issues, tax, trades, and markets are going to look at those answers and respond to that. stuart: look at financials on your screen moments ago,
they've come down recently and that's because reformer, dodd-frank, in itself financial reform, will be way out until the fall of this year. bankers were hoping for reform quickly. ashley: everyone wants to be head of the line. stuart: so, bearing that in mind, scott martin, come back in again, please. you're not putting your money into financials, are you, if dodd-frank is delayed? >> i am, i think it's an opportunity to buy the banks? why? it's the interest rate curve. the interest rate curve is starting to be favorable for banks. banks have been in the doldrums because interest rates are low, rates are up since the election, the trajectory is up for interest rates and i like the banks especially on pullbacks this week. stuart: what i'm looking at the corner of the screen, netflix, very much the stock of the day, one of the big name technology companies which has come so
far, so fast along with the amazons of this recalled would, googles, microsofts, they've all done so terribly well in the last 18 months and now netflix soaring 6% at $141 per share. we're going to get more money pouring back in and you're not a market watcher. will et me ask you the question. i want to know. are we going to see more money coming back to amazon and success on-line? >> i think that scott's plan was great on netflix jumping out and pulling back. they're coming back and amazons, doing it well and this is very much a competitive battle and why the upside for netflix. liz: there's a broader issue, we were a tick away from dow 20,000 and whether we have to conversation again and will we surpass dow 20,000? >> csx a railroad operation. ashley: leading the way.
stuart: it's up big, big today. nicole, tell me what's going on with csx. nicole: a new high for csx. it's soaring roughly 17% right now and it's taking up the transportation index and the dow is not up 1/10 of 1 is-- 1%. and that index is over 1%. there's news that hunter harrison, a railroad veteran a partner from canadian pacific is attempting to shake up everything going on over at csx. in fact, the activist investor, which is ridge, they have over a billion dollars reportedly now to invest in csx and shake this one up. so, with this news, you can see both stocks of higher and the railroads taking it. >> when do you ever see a railroad guy, you know. ashley: old school. stuart: yeah, old school. as old as i am.
i remember the day, ladies and gentlemen, when boxcar loas were an indicator of the state of the economy. ashley: yes. stuart: none of you people on that screen know what boxcars-- >> boxcar willy. stuart: i do. [laughter] and we're waiting for sean spicer's press conference to begin and waiting for rick perry's hearing as energy secretary. they've gone right now. he said he wanted to abolish-- >> he's going to repudiate. yes, you need the energy department. they have a budget two third overseeing the nuclear stock piem. a fearsome arsenal that we've got and he'll put some daylight between himself ap president-elect trump, i think, yes, some of climate change is man made. stuart: fascinating. i will bet a lot of money that the panel interviewing
mr. perry will come up with this from the new york times. now, you can't read it very well, but that's a huge headline across the screen there. ashley: yes. stuart: it says for third year the earth in 2016 set heat record. threat to society and nature is rising. scale of shift startles scientists. liz: this will come as rick perry will come, yes, i'm for building the keystone pipeline. remember, thousands of miles of pipeline was constructed under obamas two terms. stuart: i think we're going to hear about this global warming, rich lawrie. >> on global warming. stuart: is it a hoax? >> i think the cabinet nominees have come up with a politically defenseful that the planet is warming, it's a complex phenomenon. there's a man made element, we don't know how much, and make those on cost effective and all
of these that obama adopted would have almost zero effect on the earth's temperature 80 years from now, it's symbolism. ashley: china and india, what are they do? >> and they can do whatever they want until 2030 and then try-- >> when our emissions begin to go down naturally, that's when we'll make sure our emissions are declining. worthless assurances. liz: and china was applaud in davos. ashley: they choke the globe. stuart: scott martin, market watcher, do you have any opinion on climate change? >> i just thought i'd throw that out. >> i do know one thing, if you go over to china, it's tough to breathe there and i'll tell you what's interesting, if you look at the energy stocks, stuart, since the election and as we've approached the hearings, they start to behave better. under president obama, the energy stocks were under pressure. if you're an investor maybe
looking at a new sector for your portfolio. i'd look at energy. and rick perry is home to the basin where two months ago they found billions of barrels of oil hidden under the ground that the u.s. can live on for many, many, many decades. stuart: today, as we grill the potential energy secretary, i have to tell you that energy stocks are up 7% just since the election. so, investors approve of mr. trump's energy policy and those stocks are going up. oil stocks at the moment of fractionally down. i want to draw your attention to this, we may have moved the market, i don't want to take credit. ashley: why not? >> we may have moved the market. as of now, amazon is up $4. facebook is up at 128. microsoft, thank you very much indeed, is up 18 cents. and we have apple, actually, is virtually dead flat, but the big name technology stocks, look at them, they're back in business. facebook 128.
amazon 811 per share, 40 bucks from the record high, but up, up, up recently. >> stuart, when do i get a chance to move the market. can i do anything to move the market? [laughter] >> how do you do it. stuart: that camera. you imply the biggest name in american technology has a way to go. and maybe they've got more to go. speak into that camera. >> buy view stocks. >> now, confab. liz: you said con-flab. stuart: confab. ashley: that's another meeting. stuart: and he said they're not carrying their weight. >> expanding access to capital, a equitable tax system where
everyone pays their share. i said to you last night the top 1% is not carrying their weight. stuart: oh, like a fed flag to a bull! >> this is the exact conversation we've had the past eight years. it's given up 2% growth. we've got to talk about something else, not about 1% carrying their weight. it's unleashing for everyone. we've got to stop talking about that. stuart: i'm sick and tired of pay your fair share. liz: that's the flab and conflab. stuart: rich lawrie, your chance to move the market. income inequality, i don't think it's a really big deal for how the world makes progress. do you? >> right, a free society is always going to be unequal, one. and two, you look at the american tax and spending system, it's highly geared toward redistribution and we're probably going to see more of
that in the trump tax reform, or even more low and middle income people will be taken off the tax roles and the top 1, 5, 10% pays an enormous percentage. liz: 85% or 90%, anywhere of the federal tax revenues. stuart: as you mentioned there, i'm talking now about what steve mnuchin will tell the hearing. he's pushing for a pro growth tax plan in which every income group will receive a tax cut and low income americans will pay no taxes at all. >> right. stuart: that's interesting. >> right, you know, one thing i think is fascinating in this hearing, is what do they say about the dollar? because it's been the traditional policy of the u.s. government and treasury secretaries always to say, even if they don't mean it, we want a stronger dollar. u of m interest the other day in wall street journal talking down the dollar, which is extraordinary. so, what will mnuchin say about that. liz: he means in light of manufacturing jobs that a
stronger dollar would hurt manufacturing jobs. stuart: rich is right, if mnuchin says something about the dollar and he'll probably be asked about it. that would move the market. liz: and tim geitner moved the market, when he said the dollar should be in a basket when he was a nominee. stuart: an arch lieftist, george soros,'s partnering with mastercard to help migrants, what's the story? >> i don't know, i don't have it. stuart: do you have it? >> i don't. i can tell you about the avalanche, about the building collapse in iran. stuart: no, it's mastercard and soros, i'm looking for this. liz: the company on varney and company set free to roam free just like animals. stuart: and netflix is up $7 at $140 per share. that's where we are. i'm waiting for sean spicer to appear. there's an empty podium on screens across the country ap
yet to appear. liz: what is he going to discuss? because elizabeth warren and covering this, too, is going to go full bore at mnuchin hard and indymac. he bought for 1.6 billion and sold it and he would say what about foreclosures, the way you ran is was brutal, dishonest you you drove people out of their homes and say loan modifications, and how many did you seize. ashley: she's not going to shake his hand, i tell you that. stuart: is that enough to unravel and derail steven mnuchin at treasury. is it enough for a single republican in the senate or house to say no, we won't have it. >> no, he's going to say i didn't create the bad loans, i bought the company and tried to rescue it, it was the worst failure, one of the worst that no bank would touch it. are we going to rehash the old policy chestnuts of the government being responsible
for the housing crisis as well? trying to fix income inequality by giving everybody a house, barney frank, let's roll the dice with fannie and freddie and that's going to come up with indymac. ashl: they've got thing, the democrs, all they can do is smear as they can, bring up as much perceived conflict of interest and parse these, all they can do. stuart: what i saw yesterday was a lot of dirt being thrown at the nominees, not much of it really sticking and then, a rather weak response from senator charles schumer, who held a news conference and he simply condemned the nominees as just billionaires and bankers. that's a rather weak and thin read on which to base your opposition, billionaires and bankers. >> off camera, you're saying you think all of these guys could get through. i think you could be right. usually you lose one or two, normal attrition, it's possible
all the guys could get through. the exception, the one most vulnerable is looking like rex tillerson. rubio could vote, and corker said he would report him to the floor anyway and might be a way to get around rubio's opposition if he does that way. stuart: what mr. senator mccain, he might oppose. >> then you need to look at mccain, rubio and graham on the floor. >> tillerson i thought was an underwhelming performance, but i didn't see anything there that necessitated defeating him. if he did, it would be a thermal nuclear act at the relationship between congressional republicans and trump administration, i don't believe it's worth it. stuart: i don't believe that republicans would go so far to reject secretary of state. number one guy after president and vice-president. we've received the two minutes warning, takes you back to the nuclear days, does it not?
the two minute warning is in two minutes' time sean spicer, president-elect trump's new press secretary will begin his first ever press conference at that podium, the one you're looking at right now. a couple of minutes away from that. let me set the stage for what else we've got going here. two probably very contentious hearings, one has already started, that is for rick perry, former governor of texas, nominated to be the energy secretary under mr. trump,nd soon president trump. that's going to be contentious. at one point rick perry want today abolish the energy department which he is nominated to run. and that as the energy hearings, headline, for third year, the earth in 2016 set heat record, threat to society and nature rising. scale of shifts startles scientists.
drama, the way i read it. ashley: wow. stuart: there's another hearing which is supposed to start at 10:00 eastern and there is mr. spicer, we're listening right now. >> for a long time, i wasn't sure i was going to be able to get through today so i brought a special guest with me, it's my distinct honor to introduce the head of the transition team, our next vice-president mike pence. [applaus [applause] >> thank you, thank you, sean. and good morning. it is a momentous day before a historic day and i'm pleased to have a chance to report to the american people and to all of you, and the progress that we have made at the president-elect's direction, preparing a team that will be ready to serve the american people and make america great again on day one. i'm grateful to be with all of you today.
before i give you a brief summary, let me first express our thoughts and prayers on behalf of the president-elect and myself. president bush and barbara are on the hearts of every american. this morning, we understand they had a good night last night and we encourage every american to remember president bush and his wonderful wife barbara in their prayers. 72 days ago, we elected donald trump to be the 45th president of the united states of america. 71 days ago donald trump set an ambitious schedule prior to this inauguration and he asked me to chair the transition effort. and i was-- i was grateful and honored to be given the opportunity to do just that. when we took over, i was impressed, frankly, th the work that gornorhrtie and the transition team had done prior to the election, more than 170 interviews had already
been done prior to election day and i'm please today report as of this morning's announcement, secretary of agriculture, all 21 cabinet have been named, 27 that require the consent of the senate and 536 beachhead team members that will be reporting for duty at agencies following the inauguration, bright and early on monday morning. there are many people, many people to thank in this regard and i'm really here just to do that. there is a memorandum that will be in your possession by the end of this briefing, that i'll be conveying to the president-elect today to give him a full report on the transition efforts and the progress that we've made, but allow me to give you a couple of top lines. in addition to the hundreds of interviews and meetings that the president-elect has conducted in the course of this transition, i'm pleased to report that the political
appointment team has conducted more than 170 interviews prior to the election, more than 200 people since the election have sat down with what we call our tiger teams for full vetting and full review. i'm happy to say the interests of the american people in this administration has been overwhelming more than 86,000 resume's have been submitted to transition and over 4,000 candidate referrals on the evening of the inauguration, our beachhead teams are ready to land in the administration. and legislative affairs more than 90 volunteers to create and execute a confirmation strategy to support the 27 publicly announced senate confirmed nominees, designees attended so for more than 370 visits with senators and will continue to work very, very closely to support their efforts as they move toward confirmation. there's been work on agency
action, as i mentioned. policy implementation has also been very brisk in the course of this transition. specifically we focused at the president-elect's direction on a day one, a day 100 and a day 200 acon plan, for keeping our word to the american people and putting the president-elect's promise into practice. 14 policy implementation teams, tracked team and additionally 90 experts in an advisory capacity as we formulated executive action and legislative policy to pursue the goals of this administration. in addition to that, we've been listening. we established through the course of the transition the office of nationwide engagement, one for short. they've been listening, 21 listening sessions through january, and 22 business days,
met with and heard top policy issues and concerns from more than 1200 organizations, associations, and various interests and entities. that's an obviously lot of people to thank and more details that you'll see in the memorandum that i'll be conveying to the president-elect today, but let me begin by expressing my appreciation first and foremost to president barack obama and vice-president joe biden. the cooperation that the outgoing administration has extended in this transition effort would make every american proud. and i know the president-elect has expressed his appreciation, not just for the hospitality, but for the collaboration of this administration in supporting our team's transition efforts and i would reiterate that today. stuart: forgive me for breaking into vice-president pence right there. vice-president elect pence. we've got a development here at the hearing for rick perry, former governor of texas in line to be the next energy secretary. fireworks, mockery and contempt
already for mr. perry. do we have. liz: the ranking member said, in case you have forgotten you've called for the abolishment of this agency and you appear to have reconsidered. that was opening statement direct at rick perry. stuart: it's not a question, haven't gotten to that part. it's an opening statement. ashley: mocking him. stuart: anything else on what she said. liz: working on it right now. stuart: it sounded dramatic to me that she was going after him, arch, sarcastic fashion. liz: because, remember, he said in the 2011, that was one of the cabinet positions he wanted to abolish entirely. stuart: right. liz: he couldn't remember the name of it. he remembered commerce and education and he went, oh, energy, that will likely come up as well. stuart: if case you've forgotten, this was an agency that you wanted to abolish, i see you've reconsidered. stuart: there's room for that
in politics and nothing wrong with that and besides that's what democracy is, there's nothing wrong with that, is there rich? >> no, basically what they're trying to do, try to embarrass him, go after this and climate change we discussed earlier, they'll go after the idea we saw in the new york times piece on perry this morning that he supposedly didn't know that the energy department had a lot of responsibility for nuclear weapons and they'll punch him and have some fun. stuart: on the left-hand side of your screen, that's steven mnuchin, center screen, has the red tie on, walking into the hearing room. shortly he will sit down, he will be introduced by some of his colleagues, very favorably, of course, then he makes an opening statement and then you'll start to see some questions about his financial dealings in the past, 'cause he's a very well-known figure in the world of money. he'll be questioned about that. and he'll also be questioned about his tax cuts, and what effect that would have on the deficit. in fact, brian bremburg,
economics professor is with us. i think the cutting questions will come about the deficit. >> absolutely, because the projections here are so dire over the next decade. if you look at where deficits are going, more than a trillion dollars within eight years, we simply cannot have that and mnuchin is at the helm of trying to solve that. you'll see questions and again, i think that's what markets are going to pay attention to because that's a big deal when it comes to interest rates and all sorts of policy possibilities. stuart: he is going to say he wants a pro growth tax plan, slash out of control bureaucracy and america first trade policy and unleash american energy and in his opening words. steven mnuchin is the spearhead for donald trump's economic policy and charging forward with tax cuts and deregulation. >> he's going to have the details. that's what markets are watching. how exactly do you want to do this and where do you want operate first.
what do you think about debt, deficit, strong dollar. these are the questions. stuart: if the democrats put a glove on steven mnuchin, unsettled, unlikely, if that were were to happen, the market would react. >> yes. stuart: we have with us jamie, co-owner, i think, of the los angeles dodgers. welcome to the program. >> thank you. stuart: you're with us because you know steve mnuchin and know him well. >> that's correct. stuart: he's got to be a tough guy and a tough guy if he makes it to the treasury. you know him well, is he a tough guy? >> well, i think i would call him incredibly focused and i would call him driven to effectuate change and i think he will absolutely do what you say which is to spearhead donald trump's policies. stuart: have you worked with him closely? >> i have worked with him in a couple of capacities. i've worked with him both when he took over as finance chair for the president-elect and i
was fortunate enough to be one of the presidential co-trustees and a state co-chair and i've worked with steven in a public capacity on a board in los angeles, california. >> his appearance at this hearing is a lot-- is a tv appearance, essentially, and a good tv appearance means you're personable, you're able to project a nice personality. do you think he can do that? >> well, i think first and foremost, he's going to focus on the agenda and really talk about substantial matters. and if that means he'll have a good personality, that's great. but i think this is business and it's the country's combis r-- business and the president-elect's business and he's here to make sure that change is effectuated. stuart: i want to break in for a second. sean spicer is about to start answering questions, the new press secretary for mr. trump
now at his news conference and taking questions, let's listen, please. >> so, the president-elect continues to make edits and additions to his inaugural address. we will have further updates for you on that, but i know it was asked yesterday in the speech-- it's going to be a very personal and sincere statement about his vision for the country. he will discuss what it means to be an american, the challenges that we face, as members of the middle class, they face. he'll talk about infrastructure and education, our manufacturing base. i think it's going to be less of an agenda and more of a philosophical document, a vision of where he sees the country. the proper role of government, the role of citizens so, look forward to that. tomorrow, with respect to the action on capitol hill as the vice-president elect was mentioni mentioning, the nominees go up to capitol hill impress with that the president-elect chosen.
senator scott pruitt, he is the best choice for the epa. will help restore the epa to it is lawful mission. wilbur ross, will help turn the country around. john thune said his business know how will make him a great commerce secretary. senator marco rubio of florida, that governor nikki haley will stand up for american values at the u.n. dr. tom price is something americans can work toward a patient-centered health care. today we have more activity on capitol hill. energy secretary nominee rick perry and treasury secretary steven mnuchin will be up there testifying. no one understands the intersection of the american economy and american energy industry than former governor rick perry of texas. he is well-known to the senate and to the american people. there is a great deal of reform coming to washington. nothing sends the message stronger thanom nating a leader like rick perry taking the helm
will do. 30 years of finance. steve mnuchin is dedicated team builder and excellent communicator. these quality will serve him well as he works with congress and administration to hammer out a tax package that will spur growth, and lou americans to compete on a global basis. i mentioned yesterday we'll have further staff announcements on the commission staff, the special assistants, deputy assistants to the president. we'll release some of the non-commissioned support staff as well. this morning, the as the vice president elect noted we officially filled the cabinet with the announcement of son any purdue as the next secretary of agriculture. a knew more staff announcements and personnel notes i want to get through. we will announce, dab kern is the remain at white house as deputy assistant to the president and secretary of white house military office. he has been serving in acting
role in the obama administration. stuart: we'll go back to mr. spicer starting to take questions. he is doing housekeeping work at the moment. on the right-hand side of the screen, steve mnuchin, trump's pick to be secretary of treasury of united states. at some point he will be introduced and will make his opening statement. we know exactly what he will be saying. we have with us, jae mccord who worked closely with mr. mnuchin. treated his role as a movie producer. i don't think there are many treasury secretaries in the united states who have ever been movie producers but mr. mnuchin was. i believe he produced of a have tore. do you know him -- of "avatar,"o you know him as movie producer or a money guy. >> i know him as money guy. i'm not an actress yet. i live near hollywood so there is hope. stuart: is he fish gent guy? he is good negotiator?
is he purposeful? is he forceful? what kind of guy is he? >> i think he is remarkably direct, tells it like it is whether you want to hear it or not. he is incredibly intelligent. i think he is driven. so he will be on a mission to get things accomplished. stuart: you say he is very direct, looks you in the eye, tells you no, you can't have it, is that kind of guy? >> or yes you can and here is maybe and here is how you want it. stuart: what is the role in the transition team. are you formal role or advisor? >> no, my formal role is to support the again today the president-elect. stuart: are you coming to new york or washington, d.c., and do that? >> and leave sunny la? stuart: yes. >> i don't know about that. i don't know about that. stuart: wait, southern california is about as liberal as it can possibly get. what are you doing there? >> what am i doing there? that is what everyone is living
there asking me, what am i doing here. kind of remarkable. stuart: do you get some hostility? >> a little. stuart: i'm halfway joking here. >> i know. stuart: some of us, we do get some hostility on occasion. i guess you get yours? >> i think that's absolutely true. and you know, he is our president-elect. tomorrow he will be our president, and i couldn't be more proud. stuart: jamie, thank you very much for being with us today. you've added a lot to our knowledge of mr. mnuchin and we appreciate it. thanks very much. >> thank you for having me. stuart: yes, ma'am. we'll see you again soon. who is -- maria bartiromo? can i see her? yes, there you are. you're in d.c., are you not? >>es, stuart. it's really exciting here. the buzz is rising because today is really the day that the big events begin as far as the welcome celebration as well of course dinner tonight and swearing-in ceremony tomorrow.
stuart: i want you to take the temperature of the political debate going on at the moment. as i see it, mr. trump is emerging as confident. he is actively going to do something, and he received a nice welcome in d.c. when he appeared last night for a couple of dinners. i think the trump side of the equation seems to be positive and encouraging. on the left, i see a lot of whining because they didn't win the election. 68 democrats not going to the inauguration, and there are various other -- there is an attempt to disrupt the inauguration as well. how do you read this balance here in politics? >> you know what, stu? i don't think there is much of a balance. i think most people think 68 democrats are simply crybabies and they do not want to get their head around that donald trump will be the 45th president of the united states. even earlier today on the morning show i had on senator joe manchin. i know that joe manchin is pretty much independent in the
middle even though he is democrat, a conservative democrat but he too said it is so ridiculous see these people not showing up for the inauguration. the fact is, what john lewis said was also ridiculous because we all know that donald trump won this election fair and square and he is legitimate and a legitimate next president of the united states. so, i think a lot of people are looking at those democrats and saying you know what? this is going to come out and blow up in their faces. people are thinking they look silly. they're not honoring what is tradition of our great country, that is the peaceful transfer of power. so i think that, there is a lot of excitement in the air. i mean clearly the people who are here, the guests of donald trump and the people who have supported donald trump, obviously they are very excited. i went to, i got a chance to go to the new trump international hotel yesterday. it was buzzing. iisbsolutely gorgeous. a lot of people there were certainly,ery optistic about
donald trump. but even when i run into democrats like joe manchin today, many others are saying it is a new day in washington and, yes, there is a pocket of people who don't get it, don't want to get it. they're going to have a rude awakening in the next four years. they will have to deal with this president because there is new sheriff in town, bottom line. stuart: i want to throw this at you, because it emerged this morning in "the hill" and in the "washington examiner," this talk about president trump would cut 10% across the board, government spending, 10% cut like that. 20% reduction in staff across the federal government. saving $10 trillion in 10 years. i mean hearing about this kind of cost-cutting and staff cutting for many, many years in government but i never see it actually happen. this is new to you, just like it is new to me. you think he can actually do that, maria? >> stuart, i think he he made a promise to the country during the campaign he wanted to
make government smaller. he also made a promise he would approach things like tax reform the way a business person does. you look at his cabinet. he has all business people. what is most important to business people when looking at the balance sheet and when looking at managing or tens of hundred of thousands of employees, the costs. they will take costs out of the government. maybe some of the areas i was reading about, surprising. cut funding to the commerce department. cut funding elsewhere. he has to do this in order to pay for tax cuts, stu. i think he is going to do it. stuart: hold on, maria. i want to go back to sean spicer. he is taking questions from the assembled media. let's listen in. >> he is committed to not just day one but day two, day three of enacting an agenda of real change and i think you're going to see that in the days and weeks to come. what he is trying to do insure proper sequencing. staff is continuing to meet with him about that. you see activity, both tomorrow,
over the weekend and monday, tuesday, wednesday. it will be a robust not just day one but i think first week, first month, probably first term. >> do you know how many tomorrow's orders are to be processed? >> i don't want to go there yet. i think t president-elect is searching through which ones he wants to deal with tomorrow, versus monday or tuesday. we'll get a readout going forward. there is a work in progress. there is a lot to be done. yeah? >> i would like to know if we are going to the white house press corps are going to still work at west wing? >> i think that has been asked and answered, as you can tell by today. there is tremendous interest, frankly unprecedented interest in covering this president, demand and enthusiasm to understand the agenda he has and what he is going to be doing is frankly unprecedented. we have tried to be a accommodating looked at additional room space. as we announced previously we'll
continue, we'll host the first meeting in the james brady briefing room. it will be a little cramped i imagine. that is where we hold the first couple briefings for now. i hope that answers. stuart: that is donald trump's plane. in 26 hours, he will become the 45th president of the united states of america, and at that point, you start to follow the man at every single turn. he spent last night as trump tower, new york city, jumped into his motorcade, went out to laguardia airport and went on to that plane. i can't see it very clearly. i was told it was a military plane. looks awful like a trump plane. but i can't see this distance. nonetheless. that is the tarmac. that is laguardia. shortly he takes off. he goes to andrews air force base in d.c. where he starts the process of moving towards his inauguration at 12 noon tomorrow. judge napolitano is with me. what do you think? the. >> it is dramatic.
it is exciting. you're describing it in a very dramatic way. stuart: it is exciting! this man is about the become the next president of the united states of america. here he comes. this is fascinating. >> before he walks out on to the platform tomorrow, he will sign the oath of office. that is the instrument which confers the presidency. what we watch, when the chief justice administers the oath, is just a ceremony and it is of no legal import. it is the signature which causes him to receive the power. stuart: is that in the constitution? no, it's not. >> it is in the statutes interpreting the constitution. so he has to sign that. stuart: just making fun of you, judge. you're all right. hey, maria, we have a sense of real excitement here. i think you probably do too because, look, i'm a newly-minted american citizen, this is my first inauguration i ever commented on as a citizen. i see mr. trump's plane on the tarmac at laguardia, getting ready to come down where you are
in d.c. it is exciting, what is wrong with that? >> it really is exciting. it is exciting first of all because it is an incredible moment to sea the peaceful transfer of power. it is also exciting to think about his policies, stu. you and i have been talking throughout the campaign he has been focused on one priority, that is economic growth. that of course and national security. to see the incoming administration focus so much zeroing in on economic growth through tax cuts, through regulation reform, cutbacks in regulation, through tapping into the energy space, that's very exciting because for the first time in a long time, you will see a whole host of new opportunity for americans with jobs and growth. stuart: you don't think i could get excited about tax cuts? yes, i can get excited about that, big time. >> not a surprise. stuart: we're following mr. trump moment to moment. you see him -- there's the plane at laguardia airport, panning across the runaway. has he tweeted, liz?
liz: he tweeted first of all donald trump didn't divide the country, it was divide adlong time stated today by franklin graham. here is tweet by donald trump. getting ready to leave for washington, d.c., the journey begins and i will be working and fighting very hard to make it a great journey for the american people. i have no doubt we will together, in all capital letters he writes, make america great again. stuart: you don't need people like me to commentate on what is going on. listen to mr. trump's tweets. he will be tweeting all the way down to the washington, d.c. left-hand side of the screen, sean spicer, new mess secretary of mr. trump holding a press conference f there is real news from the press conference we'll certainly bring it to you. bottom of the screen the mnuchin hearing is underway. we have not yet heard from mr. mnuchin. we have charles hurt. charles, what i've seen so far, it doesn't look to me like a
single one of mr. trump's nominees for the cabinet will be defeated, will be rejected. how do you see it? >> i have to say i think i probably agree with you. coming into this there was talk that jeff sessions or rex tillerson, any one of these people, all this talk about what lightning rods they were and they were certainly going down in defeat but watching their performances in those confirmation hearings and watching just sort of questions that were asked of them, they, you know, they handled themselves perfectly. the sessions, the jeff sessions hearing, i think that whoever donald trump picks to be for the supreme court ought to take jeff sessions's hearing and watch it 1000 times before their own confirmation hearing because he did such a fine job of dealing with hostile questions, dealing with democrats on committee. i agree with you, but at end of the day, i don't see how any of these people, there is talk that mnuchin will be blocked.
i don't know how they are able to do that. stuart: you would have to convert a couple of republicans to say no to mr. mnuchin or any of the others before any of them would be rejected. i want to talk about the mood for a second. until very recently, literally until this morning the left dominated with a negative mood. they don't attend the inauguration. they will disrupt the inauguration. they're complaining about this, that and the other. i think the mood is now changing. mr. trump is on his way. sean spicer is pontificating from his podium. the hearings are underway. it looks like they're all going to be accepted. maybe i'm grasping after straws here but i think is a change of mood. i want you to confirm it for me, charles hurt, am i right. >> mood confirmed. it has been 36 years, perhaps longer, since an incoming administration so diametrically opposed to previous administration. it will be fireworks from day
one because of that divergent views these two presidents have held and so there is a lot of shock around here. a lot of people still scratching their heads. they can't figure it out, refusing to accept it. the thing i find so despicable about 68, how many democrats refuse to go to the inauguration, is that so many of those people made their bones fighting for civil right, fighting for voter rights and here they are basically rejecting the notion of self-governance, rejecting the notion that people are, that americans elect our leaders. despicable. stuart: sean spicer referred to something that you referred to. he is talking about the confirmation hearings. he is saying the questions to the nominee have had no substance or policy bearing. it has been rather disappointing, that is according to sean spicer, speaking for the president. he said that is not in the
country's best interests. go ahead, charles. >> the other problem, democrats so powerless and so roundly beaten, they're left to basically grandstand and try to make, you know, make a political issue out of some of these candidates because they're not going to be able to stop them. i think actually that makes them look even more ridiculous, such as grilling jim mattis about how you're going to make the military more, whatever. stuart: asking wilbur ross about the sea level in florida. i mean, that is a little obscure. >> exactly. stuart: hold on a second, charles. ashley: to that very point, the steve mnuchin hearing just getting underway. senator orrin hatch, republican from utah picked up on that and chastised his fellow members on the senate finance committee saying look, my colleagues are content to unfairly and in some cases maliciously malign more or less every nominee before they can assume their post. i hope that is not true of this
committee. i fear it is. stuart: so far, judge, judge napolitano is here, you've been watching these hearings. i think mr. spicer is right in his comment. it has not been about substance or policy. it is about chucking some dirt around. >> for political reasons. they have two political goals, either pry loose some republicans to make it a numerical contest or energize the base at home. this nonsense about the sea level rising and falling, some of the things senator franken saiyesterday clearly were intended to energize the base back home. they will not pry lose any republicans and not rattle the nominee. i can't imagine any other purpose. liz: fireworks out of the mnuchin hearing, senator ron wyden den, tom democrat on the committee, questioning about the mnuchin rule. back in november, mr. mnuchin said no absolute tax cuts for upper class. he said in an interview.
he is being questioned by what he means by that because it is at odds with tax proposals by mr. trump in congress. stuart: what was that? liz: no absolute tax cuts for the trump administration for high income households. stuart: that is what he said? liz: said it back in an interview in november. mr. mnuchin said that. stuart: maria bartiromo come in please, what that is all about? >> stuart, he said that to me as well when he came on the show, when they first named him as treasury secretary. the bottom line is this. right now there are a lot of loopholes, you know, they're going to be taking away those loopholes. they want to keep one child credit in place but for the most part, carried interest or all of the loopholes for hedge fund managers, that high earners take advantage of, will be stripped away. when you take those out, you are going to see fractional tax cut but still talking about the highest earning, paying a fair share. not looking to have the highest
earners, the rich, pay you know, get away with murder here, at all. i think the fact they're stripping away all of these loopholes is how you get to no tax cut for the highest earners. i want to say one thing to add on conversation on the set, pushback for democrats. they have to be very careful because they will lose credibility if they keep piling on to every single nominee. to hear bernie sanders talking to scott pruitt with this hostile tone and elizabeth warren speaking to betsy devos as well as speaking to all of them actually with this hostile and negative tone, people are just saying rolling their eye, you know what? if they push everybody and challenge everybody the way they are, and are so nasty aut it, then i dot trust them. they lose credibility on everybody. it is a different situation bringing up substantial things to the american people but don't come out with your dukes up think that people are going to
trust the way you're approaching it. stuart: fair point, maria, and i want to pick up on what you just said because i saw videotape early this morning after the betsy devos hearing, she will, or nominated to be the education secretary, after her hearing senator elizabeth warren vigorously opposed to betsy devos, she refused to shake hands with her. >> how ridiculous. stuart: that was petty, petulent. ashley: classless. stuart: and very, personal insult. charles hurt, come into this please. i thought that was ridiculous. >> it really was. i think maria is exactly right. democrats run the realistic of overplaying their hand here. also, during the devos hearing, at one point the whole thing devolved into a squabbling match among senators how many questions, who got to ask. they just looked so ridiculous. and then. >> right. >> over here half mile down the road you have donald trump going
into 1600 pennsylvania avenue, with a plan, with a very clear agenda, and all that just makes him look better and better more they hear that stuff. >> right. so optics look so bad. stu, how about the content? how about that betsy devos is for school choice. she is watching out for the children. who is elizabeth warren watching out for? the unions. stuart: how about this, there are demonstrations across the country today, largely in failing school districts against school choice, represented by miss devos. i find that absolutely incredible. the schools are failing but you get out on the streets and you protest someone who so going to change things. liz: minority parent want charter schools. they line up for it. should be pointed out democrats who are boycotting the inauguration, about four out of 10 of them, estimated come from states that trump won. so these congressman have to be very careful. stuart: nobody from the senate
is boycotting inauguration. all shorts -- senators will be there. >> these 68 share the nonsensical view of the first of them, john lewis, that donald trump will not be legitimate lawful president. or are they boycotting because they're disappointed that he won? stuart: rick perry, who is nominee for energy secretary, he has just taken the oath. he has just said he regrets suggesting that he would like to do away with the energy department. >> sorry to hear him say that. stuart: charles? >> i said, oops. stuart: that's cruel. that is cruel. listen in for a moment. listen to rick perry. i believe he is now answering questions. >> been one not only think outside of the box, do some things that people might not necessarily have associated with a republican governor but to do
it in a way that both sides of the aisle and people who really don't much give a tinkers damn about either political party but want to see results and that is what i will commit to you to find those results that will have a positive impact on your citizens of alaska and of this country. >> i appreciate that commitment, and i would commend to you that we can be that living laboratory. as wonderful as our national labs are -- stuart: this is very interesting because rick perry has just made two very important points which will probably insure his confirmation. number one, he says he regrets saying i want to get rid of the energy department. that is softening of his approach towards government. got it. second one, he says that global warming, climate change is partly the result of human
activity. that is a real pullback from any conception it is a hoax. charles hurt, you heard what mr. perry has got to say. >> it will be very interesting. as i said all along, there will be a lot of things conservatives don't like and a lot of things liberals don't like but a lot of things both sides do like about a ump administration. stuart: chart hurt, i know you have to run. thanks very much for being with us. important day. appreciate it, charles hurt. >> you bet. stuart: maria, you heard what rick perry said. that is interesting softening of the position of climate change. he is saying climate change exists and partly the result of human activity. i have not heard that from someone like rick perry before. maria. >> yeah, you're right. it's true, and i think that, you know, rick perry is doing what he can to be practical and that is what you've heard from a number of trump's nominees. they're practical.
they have been around the world. they have approached business in a practical way, and i think that is what you're going to hear. that is what you continue tohea. i'm impressed perry saying that actually, almost like an olive branch to make sure the other side knows, we're not 100% away from each other. we can approach things together. let's try it. stuart: at one point mr. trump did say it was a hoax. ashley: right. stuart: so now you have scott pruitt going to the epa and rick perry going to energy, both softening that. ashley: perry says, yes, he believes some of this global change, climate change is caused by human activity. he went on to say now the job is to figure out how to deal with it, but it doesn't jeopardize productivity in the united states. >> there is nothing wrong with disagreeing. stuart: sean spicer, listen in, please. >> look, a, as i said earlier, we'll have update on the schedule of the president-elect is still working with the team to decide how he wants to sequence these things.
but i would refer you back to the video again. he laid out very clearly what his top priorities are going to be. it should be no surprise to anybody, immigration, job creation, manufacturing, tax reform are all at the top of that list and so frankly a question of sequencing. right now he is committed to getting those things done and we're working on the timing. sikh miller. >> thank thank you, sean. in terms of the campaign again -- stuart: on right-hand side of the screen, that is laguardia airport. we're it waiting for mr. trump's plane to take off. that is the plane he is on, the one in the center of your screen. i suspect they will not some form of line to taxi out. ashley: he will get clearance. stuart: what did you say he -- okay. let me correct myself here. he is not on that plane. he hasn't left trump tower yet. we'll know when he does leave trump tower because there will be one gigantic motorcade.
>> we've been staring at an empty plane for an hour? stuart: stop it, judge. trying to do decent commentary. i said earlier we follow the president-elect moment to moment. i neglected to say he hasn't left trump tower. there you can see the motorcade getting ready to parade through manhattan and taking him down to washington, d.c. lots going on obviously. mr. trump is preparing to go down to the nation's capitol. sean spicer holding his first news conference. so far he has said, he is very disappointed at democrats hot are going after cabinet nominees, not on the grounds of policy, not on any substantial grounds but just looking for dirt. mr. spicer says he is disappointed at that. at bottom of your screens the mnuchin hearing is underway. that is kevin mack cart think,
congressman kevin mccarthy introducing mr. mnuchin. when you introduce a candidate like this, you're essentially saying how good they are. ashley: you're talking them up. stuart: exactly. >> 2 1/2 minutes to make the introduction. liz: what is really interesting, what would donald trump do first thing on his own monday morning? here is a list. he could suspend immigration from terror-prone regions. this list comes from the "new york times." this is what trump could do on his own. he could leave the trans-pacific partnership. label china a currency manipulator. freeze federal hiring on his own. could rescind obama's actions on guns. he could roll back environmental regulations. again he could basically impose on tariffs on companies moving overseas. last part he might need congress. ashley: what does he do in the afternoon? liz: exactly. >> well he told me, he told me two days ago he expected to be signing two hundred orders on monday. stuart: let me interrupt here becausejudge napolitano had a second time with mr. trump, when
was it, day before yesterday? >> yes. tuesday of this week. stuart: tuesday of this week. at that point he said, yeah signing them. >> yes. lizzie's lift is superb and that is probably the areas where they're going to go. president obama really exercised discretion that congress has given him decidedly in one direction. on guns, president obama says, if you sell two guns in a year you're a dealer. if you're a dealer, the regulations impose upon you, if you're selling a gun to nephew or next door neighbor, perfectly laudable. if you become a dealer, regulations most onerous in the federal government. president trump can resigned that. amount of pollutants in the area before federal regulations are triggered lowering the parts per billion. he can lower parts per billion
and save millions of dollars with the stroke of a pen. liz: could see dow 20,000 on monday. >> as long as it happens between 9:00 a.m. and noon. stuart: maria, come on please. i know you have got to go soon. elizabeth here just made a comment, are we going to see 20,000 right after the inauguration. why don't you answer that one? >> no, we back on 20,000? look, stuart, i think right now we have entered what is called a show me market. right now we really need to see some evidence that in fact we are going to see progress on the tax reform. we are going to see progress on the roll back of regulations. i have no doubt that we will see the progress but market need as little more at this point, given what we've seen since election day. that is why i think you're seeing back and fill in this market, monday, i don't know about monday. i will say this. thre was a saying going around trading desks last couple weeks, by the election, sell the inauguration. i'm not saying there is going to be a significant selloff but i
am saying people are waiting for more evidence, and that's what we want to see. we may very well see it with some of these executive orders on monday. so we are going to see certainly him talking tax reform. you know, grover norquist told me yesterday, that he thinks we see tax reform happen, stu, in the first six months. that should be huge for the markets. stuart: told us that this morning as well. july by the tax cuts. >> yeah. stuart: maria, thanks very much for being with us. we'll see you bright and early 6:00 tomorrow, is that right or 5:00 tomorrow? >> tomorrow we'll be at 5:00 a.m. stuart, right here from this position. stuart: lucky, lucky, maria bartiromo. seriously wish i was there. >> thank you, stuart. stuart: we'll be watching. see you then. right hand side of your screen, new york's finest all getting ready to line up and take the president-elect to laguardia airport. ashley: kind of cool with motorcycle cops. stuart: new york city's mayor not exactly given his blessing to mr. trump. liz: leading a protest tonight.
stuart: leading a big protest against him tonight outside one of the trump hotels in new york city. police motorcycles out right, i guess you say, about 24 of them all together. ashley: i think it would be cool to drive one of those bikes ahead of the presidential motorcade. wouldn't that be cool? stt: taking the president-elect his way to his inauguration. that's something. at this point in the process, we in the media start to follow every move mr. trump makes. he is about to make the move from trump to you irto laguardia. then on down to d.c., and the rest will be history, starting in about 25 hours if i'm not mistaken. ashley: oh, the lights are on. stuart: they're moving. okay. now that means, what? ashley: i don't know. stuart: that means they're moving. that is what it means. ashley: and they have gone. stuart: not the full extent of the motorcade, believe me, folks. if you ever seen a presidential motorcade, it is gigantic. everything stops, away they go.
liz: wonder if he has the water salute like last time? stuart: we'll see. there is a lot of going on, jeb hensarling, bottom half of your screen, introducing steve mnuchin who is the treasury secretary nominee. sean spicer just finished his first-ever news conference for press secretary donald trump. he just walked away from the podium. there was no news from there, other than mr. spicer's criticism of democrats for delaying some of the nominees in their hearings, and also focusing on dirt rather than substance and policy. mr. mnuchin is about to start with his opening statement. his opening remarks. we'll not take it in full but we do know what he is going to say. he is just about to thank a few people for introducing him. when he makes his statement, he will say the following. he is pushing a pro-growth tax
plan. number two, he will slash the out of control bureaucracy of the government. three, he will introduce a america first trade policy four, unleash american energy, and this has received very little substance, coverage thus far, he will rein in the country's out of control debt. i think democrats interviewing him now will focus on that how do you lower the debt, control the don't if you're cutting taxes vigorously? they will zero in on that. on the right-hand side of the screen the motorcade is assembled for the trip to laguardia. judge napolitano any news from the legal department. >> i don't know how he will cut
do that -- liz: what is mnuchin rule about limiting tax cuts for high income brackets? mnuchin commented in past limiting mortgage interest deduction for the upper brackets but preserving the charitable donation deductions. stuart: what deductions are done away with? liz: that's correct. stuart: so wealthier people pay more even though their tax rates are lower? >> sounds like this administration wants you to pay more in taxes. stuart: hold on a second. i'm ignoring -- listen in, please. >> i have the time, please. >> this is outrageous. >> i don't know about outrageous i think a little pinprick of humor might help this committee from time to time which i engage n i appreciate the gentleman's contribution with regards to the agriculture committee. he is a good member of the committee. we work together on the ethics committee. i'm sorry if i have, you know,
incurred your wrath, sir. we'll be all right. the pass-through things on tax reform -- >> mr. chairman, we have many colleagues waiting. >> fine, i'm done. >> mr. mnuchin we would take your statement at this point. >> thank you very much. chairman hatch, ranking member wyden -- stuart: you saw part of this. one senator jokingly suggested that mr. mnuchin should take a valium on the grounds that he is going to need it. another senator said, that is outrageous. what kind of a suggestion is that? there was some degree of backwards and forwards. there was a little humor shall we say, not always taken in the right way. now mr. mnuchin is starting his opening statement. now we know what he is going to say. so we're not going toun tis in full. i will paraphrase if i may. here is what he is going to say. he is pushing a pro-growth tax plan, slashing bureaucracy, and america first trade policy,
unleash american energy, rein in the country's out of control debt. now, judge napolitano, i don't think you have any problems with any of that, or do you? >> no, i don't have any problems with any of that but again these are proposals he is going to make and they're going to have to be negotiated with a republican leadership in congress. these are not things that the president can do on his own. stuart: okay. liz: that was senator roberts saying that to senator widen you may need a valium. stuart: senator widen. liz: wyden didn't like it. stuart: wyden is the ranking democrat on committee. he didn't like it. liz: nasty start to the opening of the hearing. stuart: nasty start to the opening. he doesn't appear perturbed, seems to do just fine. i should tell you as his confirmation hearing just begins, steven mnuchin, the dow jones industrial average is down 17 points. you could pretty much say the stock market is on
hold and been pretty much on hold since week before christmas. they are waiting to see what mr. trump will do in the first 100 days. will he get a tax cut? will he deregulate? what can he do immediately which would change the course of the economy? ashley: and move the markets. stuart: and move the markets. so if the questioning is particularly aggressive, looks like it gets under his skin, if it penetrates his armor, you may say the market take a hit. >> i'm wondering how aggressive donald trump will be in the executive orders? fdr signed an executive ordera% banning ownership of gold. until his people told him you couldn't do this. only congress can do this two weeks later he signed an order. >> nine years later after many sleepless nights, i was put in charge of mortgages, u.s. government bonds, munition pap
securities. several years after that i worked for future secretary of the treasury hank paulson as the firm's chief information officer. in that role i oversaw 5000 people and a one billion dollar budget. while at goldman sachs i learned the importance of the the financial markets providing liquidity, capital to business, governments and consumers. a few years later i decided to leave goldman sachs to build an investment business. after working briefly at esl investments i started my own investment business, dune capital management. throughout my career my commitment was to my clients an shareholders for whom i worked tirelessly to get the best results. 30 years later, my commitment is now to the american people for whom i will work tirelessly by helping to grow our economy, and create jobs.
i'm eager to share with you why i believe i will serve well as america's next secretary of the treasury but first, i want to correct the record about my involvement with indymac bank. since i was first nominated to serve as treasury secretary i have been maligned at taking advantage of other's hardship in order to earn a buck. nothing can be further than the truth. during the summer of 2008 i saw the devastation that was caused by the housing crisis. when i watched people line up to get their life savings out of indymac bank. it was the middle of the financial crisis, and despite the global panic, i saw a way to save the bank. i applied for a banking charter, and submitted a bid to the fdic for indymac. on december 31st, right
before midnight we signed a binding agreement with the fdic. they later confirmed that our bid was almost a billion dollars higher than the next best bid. we were willing to invest $1.6 billion into the most costly bank failure ever to the fdic deposit fund. we did this because we believed in our ability to rebuild and create a successful regional bank. we believed in the recovery for the american economy. let me be clear. my group had nothing to do with the creation of the risky loans in the indymac loan portfolios. when we bought the bank, we assumed these bad loans, which had been originated by previous management. some of those individuals had to answer to federal authorities for their bad lending decisions. we invested $1.6 billion into a failing financial institution
when most investors were running for the hills. we renamed the business one west bank and saved thousands of jobs. we developed a prospering community banking franchise in southern california as most banks were pulling back. over the next two years we bought two more struggling banks from the fdic. first fed of santa monica and la jolla bank, both through competitive bidding. combined we had almost 70 branches and built a robust lending business especially for small and medium-sized businesses. as chairman of the bank, i met with hundreds of business people from all walks of life who were seeking loans to grow their business and prosper. like many banks at the time indymac and its reverse mortgage division, financial freedom, was unstable due to the large amount of distressed credit mortgages in its portfolios.
we bought indymac, these legacy loans were included in the purchase. the responsibility landed on me to clean up the mess others made but we inherited. we worked very hard to help homeowners remain in their homes through modifications wherever possible. ultimately one west over 100,000 loan modifications to delinquent borrowers to try to help them out of a bad situation. i am proud of the fact that loan modifications started at indymac under the leadership of the fdic. however the fdic loan modification program did not work for everyone. when the fdicook over indymac they estimated more than half of the foreclosures would not meet their test for a loan modification, and they demanded many policy conditions. extend assistance to sympathetic borrowers by establishing affordable and sustainable
payments, by borrowers, increase the net present value of cash flows to the owner of the loan, and stablize housing markets. my group had to adhere to servicing agreements that limited our ability to make loan modifications that could have helped more borrowers. in the press it has been said i ran a for closure machine. this is not an accurate description of my role at one west bank. on the contrary, i was committed to loan modifications intended to stop foreclosures. i ran a loan modification machine. when we could do loan modifications we did @hem but many times the fdic, fannie mae, freddie mac, and bank trustees imposed strict rules governing the process of these loans. i am proud to be able to say that our bank was able to do over 100,000 loan modifications that allowed people the
opportunity to stay in their homes. unfortunately not all of the homes were able to be saved through these programs and despite my best efforts, some were sadly subject to for closure. so sincere was my concern over this, that in 2010 i instructed my lawyers to sue hsbc as trustee of the securitized loans to allow us to do loan modifications on loans in mortgage trusts that oversaw. which won on summary judgment and were consequently allowed to do more loan modifications and keep more americans in their homes. similarly, in 2015, when hud issued mortgagee letter 2015-11, i wrote hud and asked them to change the policy so we didn't have to foreclose on senior citizens that were behind small amounts of money on taxes and
insurance. i was so troubled by this, that i discussed it with our primary regulator, the office of the controller of the currency. unfortunately hud did not agree and we were forced to foreclose on senior citizens, even if they only owed one dollar. not complying with these hud policies would have subjected the bank to penalties and losses from hud. despite our inability to save every home from foreclosure, i'm proud of the fact that one west bank was only one of 14 banks able to complete the independent foreclosure review that was conducted by the occ. everyone of the 175,000 borrowers that were in the foreclosure process during 2009 and 2010, were able to have an independent review of their loan. we had a very low error rate,
and independent government reviews routinely showed we had the most effective loan modifications of any bank. if we had not bought indymac bank, the bank would likely have been broken up and sold in pieces to private investors where the outcome for consumers could have been much more bleak. overall i helped many homeowners stay in their homes and escape financial ruin through my management of one west bank. my experience confirmed that we must identify and eliminate unwise and burdensome policies which contributed to the disasterous outcomes that came in the wake of the financial collapse. many americans are still suffering from the disasterous ripple effects that the 2008 crisis had on our nation. faithfully insuring this does not happen again, means
supporting careful oversight of a financial system which prioritizes needs of every day americans over the wishes of financial institutions or the federal government. i felt great empathy for the millions of hard-working american families who lost their homes because the system failed them. if confirmed as treasury secretary, i will work diligently and passionately for the american people so that we never see anything like the meltdown of 2008 ever again. i was deeply honored when donald trump asked me to join his campaign as finance chairman. i had the opportunity to travel with him and hear first-hand from heart-working americans about their concerns for the american economy. over the last year i visited over 50 cities in 26 states.
i remember attending my first rally with him in indianapolis. it was an unforgettable experience. as we arrived into the stadium packed with 20,000 people, i saw the excitement that people had for a trump presidency. on our trip to flint, michigan, i went with the president-elect to visit the water treatment facilities and saw first-hand the crumbling pipes and the devastation caused by that lead-tainted water. we met with water engineers and saw the impact it had on that community, and the families that lived there. across the country on my travels with the president-elect, we heard the pained and heartbreaking stories of americans who had lost their jobs to workers in foreign countries. we heard concerns of people and small business, burdened by high taxes, just trying to make ends meet. in my meetings with you over the last month, you shared concerns
of your constituents. like farmers who worry about the death tax wiping out the family farms, or workers who are nervous about whether their retirement accounts will be safe from ruin. one of the greatest reasons i was drawn to president-elect trump's campaign was, it was predicated on a commitment to stimulating prosperity for americans of all background, whether they lived in the inner city of detroit, rural north carolina, the coal country of ohio, or west virginia, or any place in between. i share theresident-elect's goalof economically empowering every citizen. wewill not rest in our mission until that is a reality. among the president-elect's signature issues in this campaign reviving trade policies that put the american worker first. i will enforce trade policies that keep our currency strong on the world exchanges and create and protect american jobs.
we will also make america the best place for companies to do business. sensible regulation is a necessity for healthy markets, however i saw first-hand how regulatory excess can inhibit lending by financial institutions, resulting in a lack of access to capital for small businesses and entrepreneurs. alexander hamilton remarked that wealth of a nation may be promoted by quote, multiplying the objects of enterprise. hamilton knew the unique value of entrepreneurial activity to a thriving economy. from our nation's earliest days, american business had been the greatest repository of ingenuity and entrepreneurial spirit in the world. we need to unloge that power to generate jobs and create abundance for americans of all backgrounds. we will work diligently to limit
regulations, lower taxes on hard-working americans and small business, and get the engine of economic growth firing on all cylinders again. in this age of unprecedented online attacks, we must also be vigilant about cybersecurity. if confirmed as secretary of the treasury, i will use my expertise in technology to protect americans information at the irs and keep our financial architecture safe from malicious attacks. i will use the treasury department's office of terrorism and financial intelligence to stop the financing of terrorism. i will partner with other government agencies and our shared goal of allowing our financial markets to operate free from digital and physical threats. if i am confirmed as treasury secretary, i promise i will work hard with is committee, all members of congress, and the
administration to put forth policies that will help american families reach and maintain prosperity. we will make america great again. thank you, and i look forward to answering your questions. >> thank you, mr. mnuchin. thank you, mr. mnuchin, we appreciate your comments. i have some obligatory questions i ask all nominees, we do on this committee. first, is there anything you're aware of -- stuart: what you saw there was mr. mnuchin explaining what may be a major line of attack against him. sometime ago he took control of something called indymac bank, which had a huge portfolio of very weak mortgages. ashley: leading subprime mortgage lender. liz: no doc. stuart: he moved in with a high bid to buy it. he tried to straight own out the mortgages within indymac bank. he offered 100,000 loan
modifications. not all of them worked but the government would not allow him as head of indymac bank to offer more generous terms. ashley: right. stuart: the result was, some people were forced out of their homes even though they owed only one dollar. ashley: ridiculous. stuart: but the government would not allow them to stay because of rules they had imposed on mr. mnuchin. that is his side of the story. later on you are going to see some of these elderly people who were indeed forced out of their homes. ashley: yes. stuart: they will attempt to put the blame on mr. mnuchin. we have just heard his side of the story. it will get into fireworks later when the democrats have a go at him on that issue. have i explained this -- >> you have explained it fairly and simply. liz: how rotten the situation was at indymac, $12.8 billion mortgage portfolio. they couldn't even sell it for 600 million. no bank wanted to touch it. he bought it for 1.6 billion.
he inherited 175,000 forecloses. >> if democrats try to attribute to him condemnation for mistakes made by prior management, they will really, really undermined their own credibility. liz: as ashley pointed out there was robo-signing issue. >> robo-signingre ndefensible. liz: to get peopleo foreclose rapidly. >> robo-signing, documents signed by machine or human beings out reading them or serving notice on the people. stuart: i want to bring in carol roth. frequent commentate or on this program. explain -- we heard what mr. mnuchin did whether he was heads of indymac bank. you know this guy. were you satisfied for his explanation of this problem? >> i absolutely was. i think, stuart, this is one of
donald trump's most underrated picks. certainly there has been a lot of emotion around the financial crisis and what's happened to individuals but you have to go back in time and remember, that what was going on on a macrobasis at at that point in time where he came in he was really a savior. not only did he save potentially the taxpayers hundreds of millions of dollars in fdic funds that didn't have to be paid out, but think about the jobs that he saved, the communities that he impacted where lending was still able to continue to occur. he really at the time, really came in as a savior because this was a very risky bet. now we're trying to go back in history, say, oy, look at these individual situations, which certainly are unfortunate but in the grand scheme of things, he took on a lot of risk, and he did something, and he did it really well in a way where
current management really had failed across the board. so i was pleased with the way that he communicated it and i said, when we look ahead into the future, i think that people are going to realize he is a really, really solid pick here. stuart: carol, thank you. john lonski, economist, is with me now. john, this is steven mnuchin. he is going to propose a pro-growth tax plan, slashing out out of control bureaucracy, american first trade policy, unleashing american energy an reining in the country's out of control debt. i'm sure you approve of that? stuart: the democrats will throw this dirt about indymac right at
him. >> i think the democrats will have to look hard for this type of dirt. all these problems occurred i want to go back to the hearing. >> a foreign investor tied to a foreign government invests in trump's business, should the committee examine this transaction? >> yes, i think that would be appropriate. i apologize if i didn't answer the specifics on your terrorism -- >> i'm searching for specifics in order to be able to assess your qualifications. >> i believe there are important sanctions as it relates to iran and other countries. i would enforce those and even
courage the president to use additional sanctions when appropriate. i understand there are sanction programs. i will use that and work with the national security group to a maximum required by law. >> we didn't mare what you will do to fight isis. we didn't get specifics on medicare. now let's hear about this most current question with respect to the committee on foreign investment. what would you do if you were dealing with president trump's business? >> i would deal with president trump's business no differently than i would with any business and i would take my role as chair of that committee very seriously. previous secretaries have not enforced some of these things
necessarily as much as they should have in protecting the american workers and american technology. this is one of the most important jobs i would have. >> the president is not like everybody else. he's the commander-in-chief and foreign involvement in this business could compromise national security. i will reflect on that answer as well. you ran a helping fund for a few years starting in 2004 and i have been trying to get my arms around the mnuchin web of bank accounts and shell companies. they were in the cayman islands and anguilla. how many emmyees did you have in anguilla. >> we didn't have customers that resided in anguilla. >> did you have a office there?
>> we did not have an office myself there. >> so you just had a post office box. yes or no, did you just have a post office box. >> hopefully the other senators will defer some type so i can answer this question for you. >> i think you should go ahead an answer it right now. it's a legitimate question. you go ahead and answer it. >> i like all other helping funds and many, many private equity fund set up offshore entities that primarily intended to accommodate non-profits and pensions that want to invest through these off-shore entities. as it relates to my own tax situation. these were taxed as u. s-corporations or u.s. partnerships. in no way did i use them in avoid u.s. taxes. they were merely as an
accommodation to pension funds and non-profit institutions and a small number of foreign investors. as treasury secretary if i'm confirmed i would look at these rules and make sure. i think you did a good job in stopping one of the abuse of offshore deferred fees. but i would diligently look at these things and i assure you i paid all my taxes as was required. >> we'll come back to this question of offshore deals commonly called blockers. i'm troubled about this question of how you are going to unrig the system if you have got a record of taking advantage of tax shelters that in effect have zero% tax rate. >> mr. mnuchin, as you can see, you will get questions like this. and what was legal at the time still being criticized. but i'm sure you have heard of allegations that you profited
from predatory -- stuart: on the right-hand side of the screen we are following president-elect trump on a moment end to moment end basis. in 25 hours he will be president of the united states. he's about to get on to the plane at la guardia airport. his motorcade made its way in record type. he went out of mid-town manhattan up the f.d.r. drive. it took about 20 minutes. anybody else, it takes a bit longer, shall we say. he's about to step out of the motorcade and get into that plane that will take him down to washington, d.c. >> what about the tsa? >> i'm told it's a military plane. he is flying to andrews air force base. that's what's going on here.
we are building up to the inauguration that takes place in 24 hours and 53 minutes. we are counting down to the moment when donald trump becomes the 45th president of the united states. that man on the left is spearheading mr. trump's economic policy. tax cuts, deregulation, change, trade. that's the spearhead guy. so the democrats are going all out to throw dirt on hip so semite not be confirmed. they tried to associate him with offshore accounts which are tax-free. and that's what's going on right now. we'll go back to the mnuchin hearing because he's just fielding a question. >> did one west have any program that was successful in
preventing foreclosures on helping struggling homeowners? or could more have been done by the administration? >> thanks for that question. that is an important issue. when we did the indymac deal with the f.d.i.c., we committed to the loan modification program. it was after that that the obama administration came with hamp. we had no obligation to do hamp. we could have continued to do the fdic loan modifications. we volunteerly went into that program. the hamp loan modification program was a very prescriptive program including following net present value calculations determined by the treasury models to see which was better
foreclosing on a home or providing a loan modification. to the extent the net present value was higher on foreclosing we had to follow the hamp rules where we would have been penalized if we had not proceeded with foreclosures. >> these were not you're rules? >> no, they were rules driven under the obama administration under hamp. >> there is wide agreement that the tax laws are too complicated. gray -- creating a tax gap overt else owed compared to what is paid. to your credit, mr. mnuchin, you talked about your desire to
simplify the tax code. imglad you are talking about that because i agree with you. my question to you is how to address this problem. do you have any suggestions for how to make the internal revenue code less complex or keep it from getting more complicated, and would you recommend a moratorium on tax regulations, and should the tax laws try to raise revenue for the government and stop trying to achieve societal goals? >> i agree with you completely. one of the things, it's been a great honor to travel with the president-elect and i have been a chief architect of his economic plan. we've believe a critical issue is creating economic growth. and taxes -- passing tax reform is a big part of that. we believe the tax modification
and fewer deductions are critical. you mentioned the tax gap. it's something i have been reading about and studying and am particularly interested in. i was interested in the irs numbers. the irs head count has gone down almost 30% the last number of years. i don't think there is any other government agency that has gone down 30%, and especially for an agency that collects revenues, this is something i'm concerned about. perhaps the irs started with way too many people. but i'm concerned about the staffing of the irs. that's an important part of fixing the tax gavel and i'm concerned about the lack of first-rate technology at the irs. the issue of making sure we protect the american public's privacy when they give information to the irs. cyber security around that and
customer service for the hard-working americans that are paying taxes. >> senator grassley, you are next. >> like i told you when we met in my office, i don't have any gotcha questions. so the first statement i want to make, i don't expect you to answer unless you have some misunderstanding of our position discussed in my office. pro-growth tax reform will and priority for you. as part of any tax reform proposal it will be important that fad squat transition rules are included to provide a smooth transition for businesses that may be unpredictably negatively impacted as we discussed in our
meting congress has effectively put in place transition rules for some alternative energy including wind, the production tax credit is currently scheduled to phase out over the next few years, ending in 2020. based upon our conversation, i believe we are in agreement that you would support the current phase out as part of any tax reform proposal. question two, i have been a strong proponent of the irs private debt collection program as has been senator schumer. in 2015 congress updated the private debt collection program. stuart: what we are watching now is senator grass are you, republican, iowa, asking rather friendly the questions of steve hundred chicago --
questions of steve mnuchin who may well be the treasury secretary of the united states. he was involved in indymac in 2008-2009. i will bring in nigel farage. i think you just flew in. i want to know what kind of a mood you see as you just fly in to d.c. it looks kind of sour to us in new york with all these preparations to disrupt the inauguration. but you are no stranger to a sour mood, are you, sir? >> well, of course we still have political figures in the united kingdom who don't think it referendum result to leave the european union happened. these guys just don't get it. so i have seen it growing in the
united kingdom. in american there are some people irreconcilable to the shock of donald trump winning this election, including news networks who you are in competition with. stuart: this is new to us. the whole election process up until last year was an extraordinary event. you were witness to trump in some of this campaign speeches. now we learn the left can't accept its defeat. can't understand why it was defeated. why don't you set them straight. you tell the left in america why they lost. >> because people were sick to death of a career political class working hand in glove with big business, with big banks, in their own interests, who completely lost touch with ordinary people their hopes and
aspirations. i think it's a phenomenon we have seen in britain and america. we have had enough being led by people who are so hamstrung by political correctness they dare not discuss the issues we talk about at their dinner tables. what happened in 2016 was a seriously good kicking, and i think in europe this year there may be a few more of those as well. stuart: as i understand, after the brexit vote, there was some:pullback of public opinion. people saying what have we done? do you think that will happen in america? people saying what have we done? >> no, i don't. one thing trump was elected on was bringing back jobs and growth to america. how remarkable before he becomes president you have jobs being
created. this guy will do what he says, and i think his popularity rating is going to go through the roof. stu were what's this about a possible trade deal between britain and the united states? it's been mooted in the press and talked about. is this a real possibility, nigel? >> a lot of the people around trump want this to happen. there is a lot of cross investment between britain and america. we could put together a trade deal on goods and financial services, too, that would be mutually beneficial, good for growth, good more jobs. i'm told by the bureaucrats in brussels and civil servants in london that it takes five years or seven years or 10 years to do a trade deal. i think with this trump administration it could be done and dusted in 12 months.
stuart: i'm going back to the hearing room. we'll listen in briefly. >> last night additions to your recent financial disclosures. i haven't had a lot of time to take a look at it. we just received it last night. you faid to include your position as director of cayman islands corporation and shell corporations and holding companies. nearly $100 million in real estate including $906,556 in artwork held by your children. as treasury secretary as we go into tax reform. would you support closing tax loopholes in the tax code that
extremely wealthy people use such as yourself could use to avoid paying taxes? we heard about the cayman islands for years and the buildings that have had thousands of copies that used it as addresses? would you be willing to close those loopholes? >> i appreciated the opportunity to meet with you, and i traveled to your state many times and have great admiration for your state. the president-elect had a significant economic speech in detroit and we have been focused on time in your state. so i appreciate everything you have done there. let me just comment -- i realize last night you did get a memo on changes to my senate questionnaire, so thank you for giving me the opportunity to comment on that. i think as you can all appreciate, filling out these
government forms is complicated. there are self things i expected in this job including having to sell everything. but the amount of paperwork filling out the forms for even me who is experienced in business, it was quite a job. we submitted a preliminary questionnaire prior to us having the 278 for finished and prior to signing the agreement with the ethics office. so let me first say any oversight, it was unintentional. you did mention that there was $100 million ofle real estate. i was advised by my lawyer that we didn't need to dclose that on the questionnaire because it didn't need to be disclosed on the 278. th was confusion about the complexity. we worked tirelessly with the committee staff and i want to thank all the staff. i know they worked very, very
long hours. as i said, they were extremely thorough. we delivered over 5,000 panels and i can assure you they read those 5,000 panels. when i had the opportunity to meet with the staff with my lawyers and accountants we answered some very specific questions. >> mr. mnuchin i don't want to interrupt. i have limited time. i appreciate the additional information. but my question goes to what you were actually disclosing. particularly the cayman islands. did you use the cayman islands corporation to avoid paying taxes? would you support closing tax loopholes wealthy people have used in the cayman islands to avoid paying taxes? >> i did not use a cayman islands entity to avoid taxes for myself. i paid u.s. taxes on all that
income. there was no benefit to me from the cayman entity. it was set up to accommodate non-profit and pension funds that want to invest through offshore. >> so you helped others avoid paying taxes. >> i'm not going to make a comment -- they followed the law. because i have experience as a hedge fund manager, i am committed to tax simplification. i think it makes no sense that we would encourage helping fund managers to set up entities in the cayman islands where as you point out, i didn't have any physical people. there are people who set up offshore businesses and you heard of inversions and those types of things perfectly legal and hurt the american workers. in the hedge fund world these are set up to make the jt wants rich and i would love to work
with the i.r. to close these tax issues that make no sense and make sure we are collecting the proper amount of taxes. i would support changing the tax laws to make sure they are simpler and more effective, yes. >> mr. mnuchin, i appreciate your being here and willingness to go through this. stuart: i want to just refer back for a second here. there has been a little hostile questioning of mr. mnuchin on the issue of offshore and tax avoidance, and on the issue of the indymac bank during the financial crisis. i'll make the judgment that thus far they haven't laid a glove on hip. they haven't brought up something that would make any republican on the committee say you are not good enough. we are going to reject you. carol roth is with me.
am i right? no glove laid on him yet. what do you say? >> not only no glove. but he has been so charming and so sharp sit would be hard for anybody to find a flaw in the way he's presenting the information. he's saying i understand what's going on. and i think it needs to be changed and it needs to be simplified. i think he's doing absolutely flawlessly. >> the regulatory framework is clumsy, poorly conceived, needs to be streamlined. likewise for taxes. do that, we'll have a more productive economy and more jobs. stuart: they haven't nailed him on avoidance of tax. >> he knows far more about this than any of his questioners, and he's making that obvious in an inoffensive way. >> the only hot button was the foreclosure machine when he
bought indymac for $1.6 billion. >> that's because of the way the regulations were designed. liz -- liz: mnuchin said what would have happened in i hadn't bought indymac. he said private investors would have carved it you have and more people would have been out of their homes. stuart: when that was first raised the dow jones average went down. it didn't go down that much. it was down about 50 points. i think some investors thought maybe there was some dirt on mnuchin. but since his performance in responding to the charges, the market has come back. liz: the real excitement with senator roberts saying take a
valium and chill out. elizabeth warren tweeted back, pat roberts, you want him to take a valium? maybe more people should be outraged at bankers who steal people's homes. >> i'm not so sure that even appeals to her base. stuart: steal people's homes. how far off the marking you get, for heavens sake. that is a military plane. mr. trump goes washington. he doesn't stand in line while everybody else goes to washington, d.c. andrews air force base, he will be there very shortly.
i don't know where he spends tonight. where he spends tonight i do in the -- i do not know. but he will be in washington, d.c. >> he can stay in blair house or the former post office building hotel that he created. stuart: here he goes. i have a sense of history being made, and i'm so glad we can follow it moment by moment. you look at what's going not market. you look at what's going on in d.c. this is really -- this to me is particularly exciting. as everybody knows. i became citizen last year and i voted last year itoesn't matter who i voted for. that's irrelevant. i'm in a position where i could sit back, watch history being made, and comment on it as it is being made.
it's a rare privilege. >> as close as i am sitting to you, the joy is coming forth. stuart: here is a serious question. where else in the world could anyone go with an obvious foreign accent -- and i have got a foreign accent and i can't lose it. where else can you go on national television and tell the local people, here's what's happening in your society and you are an obvious foreigner. >> you speak american english far better than 90% of us do. >> it's such a charming a sent. stuart: our viewers can't hear everything coming into my ear. one of my producers said i speak english better than some of his uncles. >> that producers is from new jersey and has an italian last
name and that's true. stuart: i want to say thank you to our viewers and listeners for staying with an obvious foreigner. mr. trump's plane is banking as it heads out to washington, d.c. we are down 30 points on the dow. mr. mnuchin is testifying. >> capital llc, our master fund, and not to get into the knew aunts of this. but when one runs an onshore and offshore fund. you keep the assets in a master fund. because we set up the master fund in anguila i was required to change dune capital partners to become a foreign entity.
but let me just comment. >> no, i'm runningut of time. i have got to get to the question. >> sorry. >> if the question is, both of those were for a tax consequence located in the caymans as well as anguila. so the question is, you said you have support tax reform. do you support closing those kind of tax avoidance provisions. >> the anguila and cayman islands-type tax avoidance in the tax code. >> when i did move it, i had to eave ply to the irs. and the irs approved it as a foreign eligible entity to be taxed as a u.s. partnership. so from my standpoint it made no difference to me whether it was located in delaware. i'm giving a slightly longer answer.
i apologize it's a complicated issue. the short answer is yes as i have said before. i think i would work with the irs and with congress as i said. it makes no sense, okay? that we have all these requirements to set up these offshore entities which again didn't benefit me, but did benefit certain non-profits and mentioned. we should address the issues for non-profits and mentions and understand why they need to invest through these offshore funds. i wouldn't want to do anything detrimental to the pension holders or non-profits. but i would commit to work with your office and make sure we fix the system. >> all right. we talked about indy bank yesterday, and become one west. and you said you have bought
when you acquired indy bank, the portfolio of reverse mortgages. and to your credit, you said that once it became one west, that you did not sell any more reverse mortgages. yet you as the ceo -- i want you to comment on the fact that of the reverse mortgages that you acquired from indy bank, some of the folks wer not treated very well. i mentioned to you yesterday a 90-year-old lakeland woman was foreclosed on because of a 27 cent payment error. i did not mention two others. foreclosing on an 80-year-old orange park, florida woman that
your bank claimed didn't live in the home when in fact she did. and she happened to have the foreclosure papers served on her in the home that the bank said she didn't live in. another example, a married couple in their 50s trying to make the best of everything, they asked for a loan modification of west bank and then which they were eligible for, and instead, they were foreclosed on. explain to the committee if you would -- and i think you are an earnest, well-intentioned person, but you are sitting there as a ceo and this stuff is happening that is very unfair to little people. why? >> first all, senator, gone, thank you for taking the didn't to meet with me, i appreciated that and the time to speak about these important issues.
let me first say to the extent we made any errors or we ever foreclosed on anybody, i completely understand that the hardship that created. we did go through an independent foreclosure review and unfortunately there were some issues. very, very low rates relative to everybody else. there were some issues and we paid money to those people to make them whole. and i earnestly feel terrible for any mistakes at the bank. let me comment on also that once a week i chaired an internal committee that dealt with customer complaints. so any complaint that went to our regulators, that went to a senator, went to a member of the house or went tohat we calle the -- came through those,e had a special group of people that reviewed every single one of those complaints, responded to all of your offices and
responded directly to the borrower. we also routinely had the occ come in and monitor and test us and go through all those complaints. it was a very, very big concern because as you can imagine from the fdic and occ when we took over indymac the number of complaints spiked dramatically. as i shared with you, the reverse mort game business was not something we wanted to buy, that we agreed to bied bias part of an over all solution. we tried to create a regional bank and that business had no part of it. there were a billion and a half reverse north ages the bank owned. there were $20 billion reverse mort gainings that we didn't own, that we serviced for third parties. the majority of those third parties were hud guaranteed
mortgages. i think there are significant issues with the hud program. one i mentioned is the problem with taxes and insurance. if there is a shortage on taxes or insurance because somebody outlives their expectancy, hud forced us to foreclose. there is another problem called the non-borrower spouse where if the spouse wasn't on the mort game at the time, that you would have to foreclose on the spouse. if i'm confirmed i would look forward to discussing this with dr. carson and hope he will seriously consider look at these things. these are government guaranteed programs where we are foreclosing on senior citizens. and i can assure you nothing was more painstaking to me in the whole place. and i will tell you, i can't talk about specific loans because of privacy.
but there are certain things that were in the press, and the most troubling loan we had was to the octomom. and we worked very, very hard. that was a terrible situation and we worked very, very hard to move her to. >> the home that they could afford. but i can assure you that as chairman of the bank i took these issues seriously. not to say we didn't have certain mistakes. there were mistakes. we regret those mistakes. we had hundreds of thousands of delinquent loans. when you talk about loan modifications, banks are highly inincentivized to make loan modifications. foreclosing is a terrible thing to do, but it's also costly to
the bank. we believed in loan modifications and we were financially up season toughizedo do them. stuart: i don't think they have gotten very far because mr. mnuchin's responses have been direct and to the point and making a complicated situation understandable. >> if you look at his answers, you can read into it problems with huge bureaucracies. people lost their homes even though they owed only a dollar on their mort gaining. liz: he gave a show itout to the irs. he said what other agency has
seen a 30% reduction and they have to collect taxes. stuart: have they laid a glove on him that will bring a republican member of the committee to vote against him? >> he's making it clear that the difficulties stem from the bureaucracy. i want to tie this back to donald trump. this is an insightful pick from hip. steve mnuchin didn't have a big name. he wasn't gary cohen who was the ceo of goldman. he had been at goldman but he wasn't a big-name pick. people had to do research to understand who steve mnuchin was. what we are learn is is what a
strong and insightful pick that was from donald trump. and very sort of off the beaten path. not the person you thought would have been chosen for treasury secretary. >> at this point chances of mnuchin being rejected look slim to non. >> he's giving answers longer than they would like which diminishes their ability for follow-up questions. he explains things so quell. he's acquitting himself so nicely that they haven't laid a glove on him. liz: senator pat robert set the tone when he joked with senator wyden. stuart: it was a moment of
levity. it was humorous. >> i have got a valium pill here you have might want to take before the second round. just a suggestion. >> just another suggestion? we have a lot of colleagues waiting. if you can be brief it would be helpful. >> i'm going to be very brief. mr. mnuchin from the distinguished ranking member's remarks i understand you were in charge of the great recession, banks -- >> mr. chairman, i hope that that comment about valium doesn't set the tone for 017 in this committee. i like senator robert, but i can't quite believe he would say that to a distinguished senator. >> i said that to the president of the united states at one time. >> perhaps you did. but i would hope it doesn't set the tone.
>> order, please. order. >> it's outrageous. >> i think just a little opinion prick of humor might help this committee from time to time which i even gang in. i appreciate the gentleman's comment on the agriculture committee. i'm sorry if i have, you know, incurred your wrath, sir. so we'll be all right. to pass through things on tax reform. >> we have many colleagues waiting. >> i am done. stuart: that was not the end of it, because we had a tweet from senator elizabeth warren on that valium thing. liz were senator elizabeth warren went after senator pat roberts who said take a chill
pill. really, he should take a valium? maybe more senators should be outraged by bankers who tale people's homes. stuart: senator elizabeth warren says people steal people's homes. >> she has no credibility because they are comments are so extreme and fruitless to this proceeding. unlikely to persuade republicans not to vote for hip. she is just sending a message to her people at home. liz: elizabeth warren also bought foreclosed homes and bought properties to flip them. she bought them out of foreclosure and flipped them to make a profit. stuart: are you stealing
someone's home if you buy it at a depressed price? >> in the mind of elizabeth warren it does. stuart: elizabeth warren would not shake hand with mrs. devos after her hearing. i'm not going t say. where are we? we have got the hearing going on. we haven't had any news from the hearing involving rick perry of texas who wants to be the energy secretary. we have not heard any comments except he did walk back some of his more extreme comments earlier. a couple years ago he said he would like to see the end, the
abolition of the energy department. he also said that global warming climate change is real, and that mankind, human beings are at least partly responsible for it. that goats right up against the statement from mr. trump who said it was a hoax. so there is a walking back, some softening of the position here. orin hatch is defending mr. mnuchin. listen to that, please. >> that unit has been sanctioned by the sec for selling assets that quote harmed investors. i want say as part of the committees bipartisan vetting process, mr. mnuchin in good faith submitted answers to committee questionnaires and other materials that were later modified. to meet demands of some of my democratic colleagues, the disclosures now include
financial information that is usually kept confidential. such as the value of personal residences. the committee appreciates mr. mnuchin's efforts to work through the multiple and complicated requests for information which is by any reasonable measure an exhaustive vetting process. but let's be fair here. >> just so we are clear, the bipartisan staff called out these offshore investments of democrats and republicans to secretary lu and others. that's the reason people even knew that mr. mnuchin hadn't filled these forms of out properly. the american people deserve to know about mr. mnuchin's offshore investments even though they had been disclosed
properly. but our track record is calling out republicans and democrats. >> that's the purpose of it. but let's be fair about it. >> thank you for being willing to serve and go through this process. i want to thank you for meeting with me in my office and going through many of the accounting functions and initiatives that you will can managing. i don't ask those in these kinds of meetings because i noticed it puts the audience to sleep. but they are very important. and i was impressed with your answers. i'm impressed with your private -- >> i said we hadn't heard much news coming out of the hearing for nominee to the energy department secretary. his hearing is going on just a couple hundred yards down the room from mr. mnuchins. $stuff has been coming out of that hearing. and we put together a series of sound bites so you know what's
going on. roll that tape. >> my past statements made five years ago about abolishing the department of energy do not reflect my current thinking. after being briefed on so many of the vital function of the department of energy, i regret recommending its elimination. >> it's hard to see how we can pursue an all of the above strategy if so much of the department's all of the above catch up business are eliminated. do you have support these cuts? , yes or no. >> senator, maybe they will have the same experience i had and forget they said that. >> we are counting on you. we are count on you to educate the incoming president. moving on. stuart: those moments of levity from rick perry at the energy department. i thought the headline in
today's "new york times" would have been brought up, you can't see it very well. but youan see it's a big headline going all the way across here. i will read it to you. for the third year the earth in 2016 set heat record. threat to society and nature is rising. scale of shift startles scientists. >> is that an editorial? >> no, that's a newspaper report. baistles's the energy secretary and he deal with the fossil fuel and he's from texas. if i thought they would have brought you have this "new york times" headline. by the way, the stock market had a virtual no reaction whatsoever. carol roth is with me still. i noticed this. we have been in these hearings for an hour, hour and a half and the market hasn't moved.
came down a little bit when it looked like it might have dirt on mr. mnuchin. came right back you have again pitch suspect the market is on hold until we find out what mr. trump can do for the economy in his first 100 days. what do you have say? >> i think you are dead on as usual, stuart. i think right now with the inauguration pending tomorrow, that the market wants to see what are these big picture issues donald trump is going to tackle first as he takes the presidency. and obviously he has a whole laundry list of things that he can do and he can tackle. and many of those things affect the stock market. things like repay the yaiption of cash from overseas. changes to tax laws. so on and so forth. i think the market is going to be on pause until they get a better sense of what that is. although we know that the market doesn't like uncertainty and with donald trump even when we
get a little bit of a sense of what he might do, there is still a little bit of uncertainty. i imagine we would have a lot of back and forth over the coming years. stuart: what is the single most important thing donald trump could do and have passed through congress that would help that stock market? >> regulatory and corporate tax reform. it's very important. and again reformulating dead re- reformulating dodd-frank. and especially small businesses. you don't have to pay any money for that. stu rrp will we get the market to go up again? >> . i don't care -- >> i can jump in if you think,
if they change the tax rate what that means in terms of the extra dollars dropping to the bottom line, that adds value to the stock market. so if that is on the table going to happen, that should be positive for the stock market. >> i think it's a 14% gain? common stock. getting that through could be important. stuart: judge, i'm going to ask you an accounting question. let's suppose we get a tax reform bill it goes through congress in july it's signed by president trump in july of this year. at what point do people get more back on their paycheck? is it that july in is it august? >> it would be april 15 of the following year is the soonest they could get cash back because
of the reduction. april 15 of 208. >> let's go back to the hearing. talking about bringing cash back here. >> the debt and how we are going to handle that. but again it gets into those number any enough so i will sub. >> a lot of my time as governor, i think how to create a nurturing environment for job creation and preservation. i will talk about that in a moment. some of my colleagues raised appropriating with tax havens. you mentioned the irs. several times in the past couple years john koskinen sat where you have sit. it's a position he was selected to serve.
it's a five-year term. he's in his 70s. he took this job because he was asked to do this for his country. he's one of the finest public servants i know. there was an attempt to impeach him in the house of representatives which was lunacy. we give the irs less money than they need. they don't have the people or technology they need. for every dollar we invest in the irs we get $4 back and i have seen estimates as much as $10. we are interested in raising revenues and not having to raise taxes, that's a good place to start. i was encouraged by what you have had to say. your take on the cfpd. worth keeping? just real quick. >> that's a complicated issue. but yes, okay? the biggest issue i have with
the cfpb. i don't believe they should be funded out of profits from the federal reserve. i think they should be funds out of an approach yaition process. >> when i think of that job creation, job preservation, there are a lot of components to it. among them are research, making sure they are doing a good job protecting intellectual property. simple tax code, common sense regulation. affordable healthcare. find ways to get better results for less money. stuart: i am going to repeat what i said three times previously. it doesn't seem the questioning is getting to the candidate, mr. mnuchin. he doesn't seem to have any scars on his back because of what's put at him. he dealt with all the scandal that h bee thrown at him
whether it's the indymac bank or tax avoidance. he has come out with solid pleasant answers. >> donald trump to the surprise of many showing wisdom. stuart: you are an economist -- >> i brought in a lot of private equity, hedge fund people who were big supporters monetarily of hillary clinton and the democrats. they are now happy donald trump is in. stuart: i don't want to ignore it. on the bottom right-hand corner of your screen, netflix stock is up well over%. now, that had wall street and
many, many investors is a big story. a lot of the money that went into stocks the past year, year and a half went into big-name technology companies. the am zons, googles and microsofts of this world also went into netflix it's unusual to see that kind of gain for a stock of that size. a company of that size. >> it's all about subscriber growth. 94 million people on netflix. and the forecast was very encouraging as well. >> donald trump has had two superb weeks with respect to the confirmation hearings of he single one of his nominees. none has stumbled. none has faltered. mr. public chin -- mr. mnuchin e of that. can you think of any
confirmation hearing that did not go in favor of the nominee? would you buy netflix at $140 a share? >> it's not my type of stock. i tend to be a long-term or yntd investor. i have the main street long-term philosophy. but i think it many a well-run company and i wouldn't bet against it either. stuart: i want to thank everybody who helped me out in the commentary. we have had quite a morning. there are two hearings going on. one on the left-hand side of your screen for mr. mnuchin who is the nominee to be the treasury secretary. down the hill there is a hearing for mr. rick perry who is the