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tv   Cavuto Coast to Coast  FOX Business  October 19, 2017 12:00pm-2:00pm EDT

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my colleague neil cavuto was broadcasting. he looked better than i did. liz: much better than you. ashley: handsome devil. stuart: look at the hair. compared to what you're seeing now. and compare this is 12 noon, neil cavuto. put hill up. where is he? thank you very much indeed. neil: i enjoy that trip down memory lane with you and lou. it is like the "cocoon" club. that was awesome. let me complete the trifecta. seems like yesterday. can it happen again? we don't even know. a lot of people hone in on a day like this. market never experience ad, losing quarter of its value of the single session. the equivalent today would be the dow tumbling 5200 points. but when you step pack in time,
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you realize a couple things. i want to show you a couple things here. the things we were fixated on don't change. concepts and fears, crowds generated when big selloff on corner of wall and broad, they continue. i experienced that first-hand 30 years ago today. take a look. >> there weren't people flinging themselves off of buildings but there were near record number of people gathering outside new york city today to witness history in the making. the opportunity to see incredible drops in the dow right before their eyes. >> i want to see what it is like when it is in this condition. i wanted to see stock market anyway. >> want to see a piece of the action. neil: what they saw was program selling taken to the ultimate art form. as wall street's very biggest players, stepped in and unloaded
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multibillion-dollar blocks of shares. to the end market analysts steadfastly refusing to mention the word crash, to describe what is going on now. they like to look at it a correction that has to work itself out what they don't know, steadily worry about how far the correction has to to, how long it will take and how more people will be hurt in the process, when the market decides, if it decides to turn it self around. in new york, neil cavuto for the nightly business report. neil: i like to thank all my colleagues at nightly business report. that is very generous of them. it brings back a couple things. it was odd months later i would complete puberty. holy what the heck was deal with my voice. i sound like mickey mouse. man, oh, man. i thought i had a better toupee back then. you know the drill here. every time we experience something like this, look back in time, a lot of folks say could that kind of thing happen
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again? we always posit we'll see another big hit in the dow, not for the same reasons, the same backdrop, the -- we'll see it that is the way history goes. doesn't necessarily repeat itself. what is that line it has a habit of rhyming. what to make what happened then, could it happen again? brian wesbury. jonathan corpina. neither was alive but sharing their expertise. brian, there are so many different elements. reminded on the fact this day 30 years ago, 10-year note jumped over 10%, never bottom that high or since. >> exactly. neil: what do you make of that anomaly? >> that is one of the reasons why i don't think it will happen these days. interest rates were soaring just before the market crashed. we had this big paris accord over currencies. in fact, people still are in debate about why that happen. we do know if you bought that day at bottom, even if you
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bought before it happened, would you have made a killing in the equities markets in the next 10, 20 years. by the way, i was through puberty at that time. i actually worked, i actually working at hair -- harris bank in chicago. neil: wow. >> we were watching the market crash on the quote-tron. this little black screen. felt like you were in the apollo rock dealt. i remember walking out of the bank, taking a elevator down from the 7th floor, i don't know why it the world ended. i almost got run over by a bull. people rushing to catch the train. that is when i knew everything would be okay. if you lived in that screen you thought the world had come to an end. i can't could think we have those kinds of conditions. neil: i like to remind people, jonathan, buy on these, this is
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special circumstance. we had gotten down to 1738 on the dow on that day after 508-point hit. here we are a little north of 23,000. not a lot of people look at a 30-year time horizon on that. generally rule of thumb, you were richly rewarded sticking through the market through ups and downs over time. you can't time these things. you let me posit it through today, if you don't mind. i'm looking at market at 23,000. a young person coming up to you today, saying, jonathan, i want in on the market right now. i have never been in, but i want in. what do you tell them? >> that is a great question, neil. i hosted 30 students down from the bits school at catholic university. one of the students asked me that exactly same question. i'm getting out of college. going into business school. do i invest in the market at this time? historically over time there are
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a lot of ups and downs in the markets. there are always these opportunities. look at types of companies here, in the long run they will be here. they will be profitable. they do have the right outlook for moving forward. so, yes, we are trading at all-time highs. investors in the market wondering when i get out. some are wondering if i missed the move and do i get in. if you look at chart over last 30 years, don't have to look at 30 years, look at 11 months. we're up 25%. many entry or he canexit points but you could have money in the market. clearly jobs have gotten ther. earnings have got enbert. housing market has gotten bert. as the economy got enbetter everything risen with it. neil: we see the signs afterwards. it is easy to play monday morning quarterback, ah-ha. brian, one of the things i notice about the 87 crash.
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the wednesday, thursday, friday before, we had big hits on the dow. the dow fell close to 4%. on 15th, thursday, it actually about 2 1/2%. friday, 408 points, 4 1/2%. something was brewing. what was it? >> you know, going back to that time, we had currency agreement. we were making with the europeans and in fact this was preeuro as well, remember. so we were trying to make, it was called the plaza accord. neil: oh, sure, yeah. >> interest rates were also going up dramatically. the dollar was super strong, and that is when it sort of turned. and so there were all kinds of things going on but "brexit," we were down 6% in just a couple days. if you would have taken that as a sign that we were going to have another crash like 1987 you would have been wrong.
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in fact the market turned around after a couple of big drops after "brexit" and went straight back up again. i don't know anyone who can really time the market, neil. and that is one of the things. so, yeah, this was a huge event t was massive. neil: it really was. >> scared people, but if you look back over history, it is a blip now. neil: i'm so glad you said that. it is a blip now. jonathan, i do remember ronald reagan at that time, president at the time, he had newly appointed fed chair just taken the helm in august of that year but reagan was criticized for not being flummoxed. he shrugged his shoulders, markets will go on. he is proven right. i wonder if we get so panicked at moment, you shouldn't in a freefall, dismiss it, but take a big picture view. kind of hard to do that in middle of something, isn't it? >> right. look at president reagan. he was ultimate actor, he had to play that role at this time to
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calm the markets and to calm the investors but i think you are right. you have to take a step out of that situation we were in. as my colleague, mentioned, "brexit," we were down 6%. if there was panic in that moment, things could have gotten worse and definitely missed a lot of opportunities. look at all the major things, negative headlines we've seen in the markets last two or three years, whether terrorist attacks and fast forward to north korea and hurricanes, our market seems to absorb these negative headlines. takes a little bit of a step back, takes a little bit of a pause, continues to move higher. i think our mentality has changed in general, right? a lot of lessons were learned in '87. a lot of lessons learned in 2008, 2009. the risk parameters are much different. whether portfolio managers have risk on they take it off real quick. exchanges have collars in place, when we see large fluctuations the market, we hal we pause, take aeep breat
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neil: but tha doesn't stop tt stuff from happening. >> it doesn't. people take a step back to evaluate what is happening. neil: gentlemen, thank you. brian, i'm sorry. >> i want to real quick. sprinkle was ronald reagan's chief economist at the time and he argued strenuously, don't close the markets. there were a number of people in reagan's cabinet that wanted to close the markets and burrell won the argument. thank goodness i did. that is what a market should do is be able to clear. i'm so glad we didn't close markets that day in 1987. neil: imagine if we had. pent-up selling pressure. >> would have been a huge problem. thank burrell sprinkle for that. neil: flash back in time. >> have a good day. neil: you too. meantime president trump looking at markets today. since a lot of his critics would certainly be bashing if these markets were down, who can blame him crowing the fact they're up,
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and up appreciably since he was first elected this year since he took office, four 1000 point climbs under his stewardship. to "real clear politics" founder tom bevin, pros and cons of doing that. tom, i was thinking of ronald reagan, even though he did walk the floor of the new york stock exchange, he was very nervous about it, very anxious about it, maybe the actor will see me walking around this, this is video, film they use, at the market crashes. but that he was very much aware that what goes up will go down and, and not trying to either brag too much when the markets are up, and they were up appreciably under his presidency and jobs but he was nervous about it. should this president be careful? >> well, traditionally presidents have been careful particularly around the market because of volatility. you know, they tend to focus on bigger picture metrics like unemployment, like gdp.
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those metrics that aren't necessarily as volatile. but trump is not traditional. we know this. he is not afraid to wade right in to take credit for the bump in the markets. neil: tell you something, tom, i know the way this goes, i'm not being a apologist for him at all but he won't get a lot of bounce for that. again we would bash him if this was melting under his watch. i was reading the press 30 years ago after today where a lot of this was being blamed on the reagan administration. that it set up this frothy atmosphere. i do remember seeing a lot of stories like that. i know very different times. so how does a president handle that? i mean he is using this as sort of ammunition. you want to keep this going, you get my tax cuts through. and already his treasury secretary said as much. they don't go through, the markets are going to take a hit. what do you think of that strategy? >> it's risky. for most normal people you would
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say, well, that is not necessarily, it is not traditional and it's a little risky. trump is proven he is not averse to risk. he will go in to use whatever arguments he can to try to get this thing done. you're right. look, the markets have been up. he can take credit for that. the downside is, markets will go down eventually. he will get blamed or it. to your point he will get blamed whether he takes credit for it going up or not. neil: herbert hoover, had a wonderful first year, in roaring '20s, everything then fell out of bed. he most remembered for the crash under his watch and bringing in fdr not too many years later, so you got to be careful, right? >> you do have to be careful, but again donald trump throughout this point candidacy as president, first year in office now, he hasn't suffered for some of the more traditional things other politicians suffered for. that might be another reason he
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is willing to take the risk, go out there and take credit for the markets and use markets as leverage for his policy agenda. neil: what i worry about though, be careful what you wish for. let's say you're telling people get tax cuts through, treasury secretary is saying don't get tax cuts through there will be a big market hit. presuming you do get the tax cuts through, markets keep running on, what if they don't? there is videotape. despite all of that, markets fall, crash, weight of time, nine years into bull market, the correction is thousands of points? >> two things about that, neil. one is the political dynamic is to unique in history. republicans are basically sticking with trump. democrats hate him, they will blame him no matter. what independents are iffy in the middle. even if markets go down, deflect, not take a hit necessarily politically for that.
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on other hand his re-election is all about where the economy is. it will all be decided whether he is able to deliver on promise he made to middle-class americans to increase their wages, increase growth and productivity. so he will be judged on the economy. certainly the stock market will be part of that. neil: tom, very good catching up with you. tom bevan, can't even alive for the '87 crash. thank you very much, my friend. meantime, the president is saying right now he thinks votes are there for a budget. that is important, as you know, that budget greases the skids for a tax cut vote we're told is still doable this year. of course everything has to be timed like a swiss clock here. but very optimistic, the president he has votes for that, paving way for tax cuts which his own treasury secretary has said they don't come through, then, watch out. more after this. copd makes it hard to breathe.
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neil: all right. the big news right now, something that has pared some of the losses on the dow, i'm not saying this is exclusively the reason but the president indicating a few moments ago he thinks he has votes for a budget deal. in other words that votes are there in the senate to pass budget laying groundwork for tax cuts. you know how important that is for financial community.
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adam shapiro with latest on capitol hill. hey, adam. reporter: the president can rest assured. publicly there is one no vote, senator rand paul. we're moving towards the vote later tonight. we expect sometime around 9:00 p.m., senate will finish debating and voting on amendments to the 2018 budget resolution, then move to the final vote. want to show you tweet the president put out this morning, which he said republicans are going for big budget approval today. first step towards massive tax cuts. i think we have the votes but who knows. remember thad cochran, there was concern he wouldn't be back for the vote. he is back in washington, d.c. even some people on the fence of other issues, susan collins, lisa murkowski, they are yes on budget resolution. so has bob corker and so has john mccain. corker said getting to tax reform by the end of the year, that might be difficult. as we take a look at senate floor right now, as senators go
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back and forth between debating, eventually voting on amendments, it is important we expect the resolution to pass sometime around midnight tonight, maybe a bit earlier. here is what mitch mcconnell had to say why we need to do this now. >> passing this budget is critical to getting tax reform done so we can strengthen our economy after years staffing nation under the previous administration. >> there is no magical growth fairy, no unicorns, no kind of growth fairies that are going to somehow spring to life if this tax cut plan becomes law. reporter: that was senator ron wyden. he is the ranking member on the senate finance committee, because, the finance committee that will actually, when it gets its chance have a piece of legislation for tax reform that they will mark up. so we are headed toward the vote. first step is the budget resolution. neil, back to you. neil: adam, where is the president getting that?
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confidence thing here or people telling him votes are there. reporter: people are telling him the votes are there because you have only one public no. neil: gotcha. adam shapiro, to former hhs deputy secretary on something else the president has been talking about, that he will not sign this measure or support it on the part of the republicans and democrats, at least forged by a republican and a democrat, that would shore up these exchanges and more to the point, insurance companies for a couple of years, to help fund those who can't afford health insurance for at least the next couple years. what do you think of that? because some interpreted that as reversal on part of the president. looked like he was signing on to it, now not. it seems to be dead. what do you think? >> i don't think it is fully dead yet. they talk about dead and dead-dead. maybe it can be revived by the growth fairy senator wyden was talking about. this is all part of a negotiating ploy. they're trying to get as much leverage as they can and a
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framing device. president was against a insurance bailout. he wants to make sure when they put together that does include these csrs, cost sharing reductions, be -- subsidies for insurance companies, that it can't be framed as bailout for insurance companies. neil: but it would be. csrs are not deemed to be bailout funds but they are allowing insurance companies to provide coverage they wouldn't be able to provide out that funding? >> yeah. that is how they would frame it. that is funds allow being them to provide this coverage but it is not a bailout per se. neil, they hone in on this because it's a often a question of rhetoric. we have basic parameters of a deal but it is the specifics that will be hammered out in this back and forth the past couple days. neil: i've been noticing in little wonky world, i've been following the insurance stocks, they were hit hard when the
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president was first bashing them and then came back a little bit when it looked like the president would sign on a deal that would temporarily continue this funding but their fortunes seemed to rise and fall based on that. should they? or is it a given that democrats and republicans just don't have the means to back away from that? >> you know, neil, if you had purchased some kind of a index funds that just did health insurers on day before the affordable care act was passed back in 2010, you would have done great. neil: absolutely. >> insurers know how to make money given what rules are. the problem we don't know what rules are. the problem is you might get cost sharing reductions and now the government says we're taking it away so the lack of certainty is often a problem but once the rules are figured out the insurance companies are good knowing how to deal with it once that exists. neil: do you know if the president left these guys at ate altar? he originally told lamar
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alexander of tennessee, i like what you're doing, that he cooked this up with patty murray of washington state, do you know if he pulled a 180 or do you know? >> i don't know for sure. it is hard to predict. there are countervailing forces that this is only way getting a bipartisan deal, a large percentage and get republicans on something like this. if you talk about repeal, it has to be repeal only. you're betwixt and between. neil: great read. former hhs secretary. quick peek on the dow. on this day 30 years ago, very different than today. market had been coming off of triple triple-digit losses largely on the trump talk that he believes votes are there for a budget deal. that would set the stage for a vote on thewa tax deal. more afternc this.
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>> what about the split though? that split between the parties? >> i don't think that surprises anybody. we're trying to stay out of politics. that's not, we're not looking into politics. we're looking to do is continue to give people focused on football. neil: our connell mcshane getting very nasty with the nfl commissioner. what is the problem here? >> nasty, all right. we talked before the news conference that roger goodell about how politicized this national anthem issue has become. i wanted to get to that with him. they're in politics, no matter what they want to do. the numbers from gallup came out, football's popularity is going down. there is a political split which i thought was interesting. neil: this didn't adjust the split. >> more republicans leaving identified as pro football fans, not college by the way, college remains constant. pro football fans, that might
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speak what is happening with the national anthem controversy. i was asking mr. goodell about the business impact, what they plan to do. he didn't answer hardly any questions. neil: he was offended i think the most by yours. >> he looked that way but i'm used to it. john mayer a of the new york giants said we had businesses hurting. we know these are important social issues, we have to take the shot against our business. the fact that their business is hurting, they know that, there are two sides to this they think if they give in too much to one side or the other, why they're trying to find the happy medium, they will get hit legally, maybe just in the media but they're going to get hit. neil: lawrence jones with us, "the blaze" host. they're between a rock and hard place on this one. i don't know where this goes, do you? what's next? >> neil, i would first comment on the notion that it has become
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political. i believe, especially professional sports have always been political. i started with integration of black athletes, in these leagues, and so there is always been some type of stance when it comes to social issues from athletes. the problem is now americans are seeing this whole anthem debate as being anti-american and i see that is where the split is. you say where do we go from here? i believe the only resolve to this issue is getting the president in a room and athletes in a room, that are passionate about social injustice. if you get both -- neil: didn't mean to jump on you. the president meeting with puerto rico governor on aid, everything else and maybe this very issue. >> -- over last couple weeks, i can tell you are a hard-working governor. it's a tough situation. so much has to be rebuilt, even from before. the difference between texas and florida and various places is
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we're looking at designs of a new power plant, the big electrical plant, many different designs and concepts which of course is very unusual, because it was in pretty rough shape prior. now it is even in rougher shape. with that being said i think we've done a really great job and we had tremendous cooperates from the governor. and we are getting there, and people are really seeing the effort that has been put into puerto rico. it has been a very, very difficult situation for many people, i will say that. especially the island nature. if you look getting food there, we did. the distribution was very difficult because the roads were blocked. even people of puerto rico couldn't get to their food in many cases because of the distribution centers and roads were in really horrific shape because of the storm. and sometimes because of before the storm. but with that being said, step by step it is taken care of. i say we have a wonderful, and people of puerto rico have a
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wonderful representative with respect to themselves in this governor. this governor has worked as hard as anybody i've seen, and, getting done. so i want to just thank you for all your help. thank you very much. >> thank you. thank you, mr. president. thank you for setting this opportunity. you know, it's catastrophic situation in puerto rico as you know. it is only time two category 4, category 5 hurricanes passed a jurisdiction in the united states but certainly working in a united front, we are going to beat this we know we will build better than before. today is an example, mr. president. i don't think in the history of puerto rico we have had the opportunity to sit with members of your cabinet, decision-makers, not only talk about what we've done, but also the path forward, to establish our commitment to treat the
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citizens of puerto rico, proud u.s. citizens of puerto rico equally. while there has been a lot done, and i want to thank you personally, mr. president, you answered our call for the prehurricane emergency declaration. declared puerto rico a disaster very, very quickly, verbal request, because we didn't have electricity at moment. you gave us waiver a and b for fema. and staunch communication with all of your members now. we recognize that a lot of things have been done but a lot has still has to be done. so we're, we're hopeful that with this meetings that we're going to have, we'll talk about the immediate needs for puerto rico, what we need to do to get out of life-sustaining phase. what we need to do to stablize pour rico. of course what we need to build puerto rico better than before. i'm confident with your
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commitment, with your support, mr. president, with your team's support, we will be able to come out of this in the long haul, together with puerto rico, give the u.s. citizens of puerto rico the adequate resources. treat us the same as citizens in texas and florida and elsewhere. we will come out of this stronger. we will make that innovating, mr. president. i know you are a proponent of public/private partnerships and i think there is an opportunity here to leverage growth in the energy sector and to be innovative, not only rebuild what we had in the past, but also with the aid of the federal government and with the private sector, rebuild a much more modern, much stronger platform, not only have puerto rico have energy, but actually be a model of sustainable energy and growth towards the future. those are aspirations i think we can talk about that in the education sector, in the health care sector. those are all of our aspirations. we're confident within this
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group we'll answer those important short-term needs but talking about long road ahead, working together with your administration. again i want to thank you on behalf of the people of puerto rico for your leadership, for your team's leadership and for having a commitment to stay with the people of puerto rico, with the u.s. citizens of puerto rico here for the long haul. to not just put things back together again, but rebuild them as it should be. >> thank you, governor. one of the things we have done, delivered to the island massive numbers of generators for electricity because with the power plants down, in such bad shape, we had to find some way to get, especially for hospitals and certain other areas. we have, i don't know if it is record numbers but got to be pretty close, record numbers of generators, so we have electric in the most important locations, and step by step bringing it back. but you can't really bring electric back until you rebuild the power plant. that is different level of
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subject. with that i will say that i have given my blessing to congress and congress is working with you and your representatives on coming up with a plan, a payment plan, and how it is all going to be funded because, you are talking about some substantial numbers and i guess you knew that. you were talking about rebuilding the electric plant before the hurricane. you've been wanting to do that for a long time. maybe this is a reason we can do it. we'll help you and all do it together. i will say this the people of puerto rico are amazing, incredible people, the spirit they have, the strength they have, what they have gone through. many were isolated in areas where there were no roads, there were no bridges. the bridges were wiped out. it is incredible to watch the spirit they have and they did it with grace. they did it with a smile in many cases. it was something beautiful to watch. please extend all of our warmest regards and, we're with you. >> thank you so much.
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>> thank you very much. reporter: mr. president, last week you suggested there was a limit to federal emergency involvement in response to the part -- puerto rico hurricanes, not just the recovery but rebuilding of puerto rico? what do you say reports of widespread corruption of local officials with emergency supplies and the fbi -- >> i'm working closely with the government on that because there has been corruption on the island. we can't have that we're sending supplies, tremendous amounts of food, water, and everything, i know your folks are working on that hard. but we just can't have it. when it comes to texas as an example, you know how smooth it has been, it is operating like a well-oiled machine. they are going well and people are working very hard. in puerto rico they are working hard too. we got some of those reports on
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local basis. i think the governor will be able to do something about that. >> of course, sir. if you want i can brief you what we're doing. we got some reports food was getting from fema or private sector, not-for-profits to different municipalities and not being distributed appropriately. we did three things. we got national guard to go to municipalities to help logistics. in some cases it was not knowing how to execute. number two, we had auditors from the treasury department so we have accountability, what food goes in and what goes out to the to the people of puerto rico. very importantly we had our department of justice go and investigating whether there has been mismanagement of food because it is unacceptable. as i stated the first day -- >> by the way not by federal. this is local talking about. just so we understand. brock is here and tom is here. i think they have done an incredible but we're talking on local basis. i think john that was your
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question also. reporter: it was. >> right. we are following up on that. as i stated the first day, if there is a public official that is purposely mishandling the food that should go to the people of puerto rico, there will be some hell to pay. reporter: mr. president, amount of time to commit federal resources? >> i would say that anywhere we have to go. at some point fema has to leave. puerto rico is more difficult circumstance, as you understand, jon. at some point we have to leave various locations we're in. we were in louisiana, and they have done a fantastic job. they were sort of grazed but lake charles and various areas were head pretty hard. it was a grazing hit. we worked there. they have taken over and been fantastic and texas, florida, it has been incredible to watch. it really been incredible to watch how quickly things are coming together. but at a certain time, fema and
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first-responders the by the way, military, we have close to 18,000 people in puerto rico right now. we move ad hospital ship, i believe largest in the world that is there now. you don't want to use it if you can have the local hospitals, that is better in many ways but we have tremendous assets in puerto rico. no, at some point, no matter where it is, whether it is texas or whether it is florida, you know, it ends but i can say in the case of texas and the case of florida, in the case of louisiana, some areas also got grazed, they have been been incredible with the response and in some cases some areas are already back. in this case it is more difficult situation but i think the governor understands, fema, military, first-responders can not be there forever, and, no matter where you go, they can not be there forever.
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>> if i may briefly add to that, that is importance of short-term and long-term packages that will be in congress, right? we will need some resources. of course fema is there for the initial response. there is some rebuilding to go through. so that is why, we're thankful to the president for supporting these petitions so we can get resources, liquidity, to kick-start the economy. of course the long-term rebuilding process. this is very important. you know, president has been clear on stating that you know, no u.s. citizen will be left behind. we will be working. this is the way we work towards making better america and better puerto rico. [shouting questions] >> you have areas in puerto rico where we literally had to, and still have, but it is getting less and less, delivering food and supplies by helicopter because the roads have been
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wiped out and bridges are wiped out and there is no way to get there except by helicopter. those are difficult situations. we're working with the governor and folks on getting it taken care of but we're literally delivering supplies dropped by helicopter with that being said i have to also say our military and first-responders and brock long and fema and tom, the job they have done has been incredible, but we are delivering very essential supplies by helicopter. there is no way to get to areas on the island. the folks have done an incredible job. brock, would you like to say something? >> every day we continue and focus is on restoring essential services. we stablized a lot of emergency power needs of hospitals and we're starting to work and focus with the governor rebuilding power grids going forward and water treatment, wastewater, roadway systems. we'll continue to support the governor. we're looking at trying so
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specifically restore the essential power, or essential functions to six major municipalities within puerto rico that service 80% of the population, starting there, working our way out. so the traditional recovery is going to require a solution far greater than what fema typically puts down. why we're here today working with governor rosello and the president and all cabinet members to figure out what best way forward for all the solution. >> there has never been a situation where power and energy has been so devastated, never, where you don't have a power plant. power plants, don't fix them up, we're not just putting a pole up in the street like in texas you put up poles and florida you had a lot of underground wire which is great, and would be great if you had underground wire in case of these storms but never has been a situation where the energy and power has been
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totally destroyed and part of the problem it was pretty well destroyed before the storm. we're working together to get that back up, but also to make it long-term. i think, they were working on long terming it prior to the storm. so now they are really working on it. >> and that is port of the mitigation strategy. i can't stress enough how important it is we keep this for the long haul. that we work together so that we can make sure we don't just put things back again as they were but that we make them better than before and i think that is the critical -- it is better for all u.s. citizens this happens. i think puerto rico again, looking at long term, recognizing we're still at emergency phase, this could allow puerto rico to be a showcase in terms of energy production and other by way of mitigating and innovating. reporter: mr. president, between one and 10, how would you grade the white house response? >> i would say it's a 10. i would say it is probably the
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most difficult, when you talk about relief, when you talk about search, when you talk about all of the different levels, even when you talk about lives saved, you look at the number. this was, i think it was worse than katrina, in many ways, worse than anything people have ever seen. they got hit by a category 4, grazed but grazed about you know, big portion of the island but it was grazed. the rest of it hit florida as you know. that was bad. but then they got hit dead center, if you look at those maps, by category 5, nobody has ever heard of a five hitting land. usually by that time it has dissipated. it hit right through and kept to a five. it hit right through the middle of the island, right through the middle of puerto rico. there has never been anything like that. i give ourselves a 10. i think that, locally, i really
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think locally they have, in this gentleman great leadership. i have to tell you it's a tough job but, we have provided so much, so fast. we were actually there before the storm hit. which were there before the first one, before the category 4 hit. brock and the military and a lot of people were there before the storm. we had the coast guard waiting for the storm, just outside of the storm and following the storm in. many lives saved. the coast guard in texas save 16,000 lives. the coast guard is incredible, incredible the job they have done. all the armed forces what they have done is army, navy, the marines, the air force, all of the goods dropped in, helicopters that were not meant for this purpose, all of sudden they are delivering food and services. i would give a 10. i would say locally, and i understand locally, a person
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loses his or her or their house, and then they can't go to work. if you lose your house, it is hard to be a policeman for the day. you're trying to have your family live frankly. this is what happens. so many people. you read that they had no truck drivers in puerto rico. well they have a lot of truck drivers in puerto rico but many of them lost their houses. so they had to be with their family. so we would have military driving trucks. they're not supposed to be driving trucks, it is not their aptitude. some of them didn't know how to drive trucks, they learned very quickly, they are smart. military many cases driving trucks. it is not the people's fault. they lost their house, they were devastated. i think we did a fantastic job. we are being given credit. it is very nice that the gentleman who worked for bill clinton when he was president, gave us an a-plus, that included puerto rico, gave us an a-plus. i thought that was really very
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nice. i really believe he is correct. we have done a really great job. texas again, really very far along. florida very far along. puerto rico is a different kind of situation because it needs over so much infrastructure. over time that will happen. reporter: [inaudible] >> we're not talking about that now. you will get me into trouble with that question, right? we'll hold that one, we hold that one, mike for a later time. reporter: [speaking spanish] >> then you can interpret. >> [speaking spanish]
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[speaking spanish]
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so i will say brief version in english. >> i like it better in spanish. that was beautiful. >> i like it too. my job as a governor is to state what the facts are, number one, and to establish robust expectations for the people of puerto rico. and for the u.s. citizens in puerto rico. the facts are, every petition we have made to the president of, the president of the united states, until this moment it, has been answered. it has been answered. the reality is, that we still need to do a lot more for the people of puerto rico. that is why we're meeting here. this is not over. not over by a long shot. it is the president's commitment to work with u.s. citizens of puerto rico, to treat us equally, on this event. to make sure that those 250,000 that have lost their homes, get equal treatment. that we can start restoring the more than 42 roads that have been destroyed in puerto rico.
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that we can lift up our energy grid. that is something that needs to start happening now and i petitioned the corporation of engineers, i petitioned fema and our power authority to work together so we can be aggressive and we can get results for the people of puerto rico to restoring energy as soon as possible while keeping an eye on having the opportunity to have a better system for puerto rico. you know, mr. president, the united states has been characterized for taking extraordinary measures and at extraordinary times. these are extraordinary times in puerto rico. therefore these are extraordinary times in the united states. [shouting questions] >> i think we'll be successful tonight. it will be possibly sometime in the morning, maybe sooner. i think we have votes for the budget, which will be phase one
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of our massive tax cuts and reform. i think we'll be successful tonight with respect to the budget. you know, can count votes better than most people. but i think we have the votes. i frankly think we have votes for tax cuts which will follow fairly shortly thereafter. so, we will see what happens. but i will tell you, our country needs tax cuts. these are examples, when you look what we went through with texas, florida, louisiana, and puerto rico and virgin islands. look at, you know, we need, we need growth. we need people who are going to be pouring into our country, and we have that now, we're starting to have that. we're starting to have that even on the prospect of tax cuts. we have companies, you saw last week, car company, massive improvements and expansions, and some cases brand new plants, they're coming in. fox -- foxconn, as you know, they make apple iphones and
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more. they will build a fantastic plant, in the state of wisconsin. hopefully it will be there. we've been showing that land. it's a beautiful piece of land. i hope they like it. that will be one of the biggest in the country. i think apple is going to be building very, very big plants. people are starting to say, hey, this is where we want to be. many stock market hit all-time high. we hit it 49 times, mike. we're really doing well. but we can do something very, very spectacular if we're given the tax cuts. we're one of the highest taxed nations in the world. you look at our taxes compared to other competitive nations or competitor nations. because nothing is competitive with this. i'm a little biased but that is the way it is. but you look how high we pay and how much we pay and our companies, they leave because the taxes are so high. if we get this done, it will be historic. it will be bigger than any plan, ever, you know, ever approved or
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ever. it will be the biggest tax cuts in the history of our country. and i can tell you, we have tremendous support for this. so, the budget is going probably fairly late tonight. it will be working late tonight. could be one of those morning calls you watch television at 3:00 in the morning. it could be sooner than that. i think we have votes. right after the budget we start with the vote as you know on tax cuts. i think we're in very good shape. reporter: mr. president, who will pay for infrastructure recovery in puerto rico? >> we'll be working with systems, dealing with congress. we'll be coming before, meaning far before any existing debt that is on the island. as you know the island has massive debt, we talk about the electrical facilities. i think they have nine billion in debt. any debt that is putting in will be coming before that debt. we want to make sure we put in debt and that debt is absolutely protected. in addition to that we're
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providing tremendous relief and services right now. and we'll continue to provide that for a period of time. and then a new group will come in. and the new group will be more building oriented when things are perfect. but we do have to come before the existing debt. they have, i guess, by some counts $120 billion if you add everything. probably about 120 billion. certainly any money put in by people, whether public or private, they're going to want to come in first position. that very important. i think the governor understands that. i would imagine pretty much everyone understands that in puerto rico. reporter:-bondholders? >> we're helping a lot. this is costing a lot, having people marks having military, and first-responders and we're doing that because we have a obligation to puerto rico, to and to humanity. we have an obligation to ourselves. we want to continue to do great job on that.
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we'll continue doing it. at some point there will have to be reconstruction. the biggest thing is the power plants. but there will have to be, it is pretty bad you have to say power plants almost coming before bridges you you have power plants that are needed. you have bridges that are needed and you have roadways that are needed. that is something you don't see when you go into areas hit by hurricanes or disasters of almost any kind. reporter: [inaudible] >> excuse me? reporter: [inaudible] >> it's a very, very good question, actually. as you know much of the electric is done by generators -- brought to the island in massive numbers as i said before. the plant itself will take a while, we have to build a brand new plant or essentially do renovation so large it will be like a brand new plant. one or the other. we're looking at both right now.
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there has never been a case where power plants were gone. you can't just fix the polls. -- the poles. there has never . reporter: how do you rate the white house's response? >> as i said, the president honored all of our petitions and this is still ongoing. we expect that will continue. we're being very diligent, giving all of the data. and what we want to do, i want to circle this. this is a storm-centric approach to what happens. there was a massive devastation and catastrophe in puerto rico, and our response should be to that, and that's why, you know, the first responder effort was there, that's why the stabilization effort is there. that's why we set some very aggressive milestones to restore energy in puerto rico, to have about 30% of the energy
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by the end of the month, by the middle of next month, about 50% and so on. because we want to make sure that people have that knowledge of where we're going to go, that they can stay in puerto rico and be part of the rebuilding process. what keeps -- what's going to keep the people there, what's going to keep this going is knowing that we have the backing of the white house and knowing that we're going to have the backing of congress so that we can have the resources appropriate to attend to the storm and then be smart about it, be innovative and restore puerto rico to a better position than before. leveraging other stakeholders. private stakeholders, not for profits, people who want to innovate. this is our opportunity to showcase that puerto rico, u.s. citizens of puerto rico can come out of this catastrophe stronger than ever before. >> governor, i want to ask you a question, for the spirit of the people that worked so hard and so long like tom and like
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brock and like so many others, did the united states, did our government, when we came in, did we do a great job? military, first responders, fema. did we do a great job? >> you responded immediately, sir, and you did so. tom and brock, they have been on the phone with me essentially every day since the disaster. we recognize that there are some logistical limitations that we have in puerto rico. we didn't have the force open for a couple of days. didn't have the airports working full capacity, until about a day or two ago, so that was always a limiting step. but if you consider we've gone, even with the obstacles, gone about 15,000 d.o.d. personnel in puerto rico. 2,000 fema personnel. hhs and others. the response is there. do we need do a lot more? of course, we do, and i think everybody over here recognizes
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there's a lot of work to be done in puerto rico. with your leadership sir, and with everybody here, we're committed to achieving that in the long run. reporter: brock, in the last 50 days, put this in the context of america. from the virgin islands to california, we've been working in 20 different states, disasters in 20 different states. in the last 50 days, under the president's administration, we've registered close to four million americans for individual assistance. that's more than katrina, rita, wilma and sandy combined. it's been a tremendous effort. reporter: mr. president, this is actually bigger than anything we've seen. >> and yet i think our response is better than anyone has ever seen, and again we were given an a+ for the man who did it for the clinton administration. while i don't know him, i would like to thank him for what he
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said. reporter: the government loan not a government grant? >> talking about combinations of both. we're talking about potentially combinations much both. reporter: any thoughts on president bush's speech? >> i didn't see it. i didn't see it. reporter: sir, you talked about the health care plan as a good short-term solution and you seemed to back off on your speech in the heritage foundation and you opposed it? >> no, i like people working on plan at all time. i think ultimately block grants with the way to go, you block out money to the states, you get better health care, for less money, it will be more specific. a state is a smaller government and can take better care of its people, especially when you have well-run states. when you have governors that do a great job, and states that do a great job. if you look at florida, maine,
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maine really was very much anxious to do that. various states. kentucky. various states really wanted that block grant money, and for the most part, i think we have the vote for that. there will be a transition period, so anything they're working on will be short-term, it will be absolutely short-term because ultimately it will be -- it's going to be repeal and replace. so i have great respect, as you know, for both of the senators that you mentioned, and if they can come up with a short-term solution. what i did say is i don't want the insurance companies making any more money because -- than they have to, because you look at the stock prices of the insurance companies from the time of the creation of obamacare, with 300 and 400% and more than that, increases in their stock, they made a fortune off obamacare. the people that need obamacare are decimated. premiums are up, 40, 50, 60% in
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some cases over 100%. in the case of alaska, premiums are up over 200%. so anything they're working on is a short-term meaning. one year to two years max, because i think we have the votes or we're certainly within one vote, and when you're within one vote, we're able to get a vote. senator corker as an example, i have such respect for him because he's not feeling great. i can tell you that. and he got on a plane in order to vote for the budget, and i have great respect for that man. i think it's incredible. but votes are very fragile. we found that out. we've seen that. i've learned that. i thought we had it the last time and somebody came out of the blue and voted against it. now we start the process all over again, but the block grant, the concept of blocking it out, block grants to the states, that's what people want, and that's what the
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states want, and that's especially what the well-run states want because they will have health care that's so good, far better than anybody's even ever thought. so, again, i respect very much the two senators you're talking about. i love that they're working on it. i want them to be careful with respect to the insurance companies. insurance companies are extremely good at making money, extremely talented at making money, and i want them to be careful with that. we'll probably like a very short-term solution until we hit the block grants, until that all kicks in. in other words, it doesn't just kick in the following day. there's a transition period. and if they can do something like that, i'm open to it, but i don't want it to be at the expense of the people. i want to take care of our people, i don't want to take care of our insurance companies. they've been very well taken care of over the last number of year, believe me. okay, thank you very much,
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everybody. thank you. thank you very much. >> uranium is a big subject. if the mainstream media would cover the uranium scandal and that russia has 20% of a uranium for whatever reason and a lot of people understand what those reasons may be, i think that's your russia story. that's your real russia story. not a story where they talk about collusion, and there was none, it was a hoax. your real russia story is uranium, and how they got all of that uranium. vast percentage of what we have. that is, to me, one of the big stories of the decade, not just now, of the decade. the problem is that the mainstream media does not want to cover that story because that affects people that they protect. so they don't like covering that story. but the big story is uranium
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and how russia got 20% of our uranium, and frankly, it's a disgrace. it's a disgrace. and it's a disgrace that the fake news won't cover it. it's so sad. thank you very much, everybody. reporter: do you have proof in the dossier? do you have proof? neil: all right, thought he would have added more there. cautiously leave these things because you never know. that was sort of a wide eyed press conference, to talk with the governor of puerto rico, he made reference about the russian uranium story, suffice it to say, backhanded means of going after and buying influence into the united states, all the way the to clinton foundation and russian proceeds that ended up in the clinton foundation as hillary clinton was secretary of state. a story the president argues the mainstream media has by and large ignored at the expense of focusing on allegations of russian collusion in the last election, and whether that
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ultimately bought the presidency. again. this back and forth on this and whether the story dealt in anything is the president's guess, the president making clear he thinks the media has been disproportionately unfair on that. blake burman, the president saying he's confident that the votes are there for a budget vote and that would pave the way for a tax cut vote. your thoughts? reporter: yeah, and the president saying, as we expecting that this vote could happen either tonight or into the wee hours of the morning, depending how the senate schedule goes. the president sent out a tweet talking about this budget vote, and he said who knows? his words were who knows if there are the votes. the president was asked point-blank whether or not senate republicans, and this is squarely on senate republicans at this point. if they have the vote which would allow them to then take the next step to move onto tax reform. it was a little bit of reversal from this morning as the
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president appeared confident that senate republicans have the numbers. listen here. >> i think we'll be successful tonight. it will be possibly sometime in the morning, maybe sooner. i think we have the votes for the budget, which will be phase one of our massive tax cuts and reform. but i think we'll be successful tonight with respect to the budget. reporter: and the president went onto say frankly, i think we have the votes to get tax cuts after that. this was a wide-ranging, you're right, neil, you can't call it a press conference, with the select members of the media. the pool spray, but remarkable considering this went for some 35 minutes, and what you almost just saw there, neil, was the meeting between the president and the governor of puerto rico just kind of unfolding there in the oval office for all of us to kind of peer into and listen to. there was a lot of criticism at the beginning that the administration wasn't responding fast enough, and some criticisms afterwards that the administration wasn't
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treating puerto ricans like they were the citizens of texas and florida. the president pushing back on the notion with the puerto rican governor by his side. by the way, neil, also at the white house later today, an interview between the president and janet yellen as the fed chair nomination comes soon. neil: is there any thought that she could be reappointed? >> reporter: keep in mind, he slammed her on the campaign trail. >> i know. and she had zingers toward him. reporter: yeah, the argument was janet yellen is a political arm of barack obama and hillary clinton. neil: right. reporter: and should be ashamed of herself. if you told me we'd be standing in october with the president talking about respect now twice for janet yellen. he said it the other day and last week, you probably get good odds on. that will she get it? on the one hand, keep rates low. president is a low-rate person. on the other, this is a chance for the president to potentially nominate a republican in the fed chair post. down to five, he'll make his announcement before he leaves for asia. neil: blake, good to see you,
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thank you very much. a quick peek at corner of wall and broad, the dow down 30 points, well off triple-digit losses on this day. we look back 30 years ago when we had a freefall in the market. the equivalent of 5,000+ points if we get it. none of my guests were alive then, including steve leeb, lizzie mcdonald, and fbn senior editor. he and lizzie go at it. who's the biggest brainiac of them all. charlie, i end it with you and your thoughts on this. i know there are a lot of comparisons. one thing that struck me is the 10-year note on that day was over 10% and it has never been that high since. interesting. >> tumbled down to around a little over, i think it was just over 9%. tumble of 200 basis points as the investors stumbled into
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treasuries in the sell-off. we're at a point, looking at 2.3, 2.4%. neil: on that basis alone, you can't have something like that happening. rates are so low. you would argue that's part of a bubble there, right? >> that's fueled the latest stock market surge that many are calling a bubble. neil: i encourage any and all freely to interrupt. lizzie, what do you think? >> it could happen again, by the way. the market had run up that time, and basically iran and the u.s. started shooting at each other. neil: that's right. >> iran was shooting at u.s. ships off of kuwait, then reagan official, james baker made comments about the value of the dollar, that he wanted the value of the dollar to go down versus the german mark. and what did it is fear, elaine who called the crash on october 12 in 1987, the slide started october 14th of that year.
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she said it was fear. we have computer fears now more than ever before. it was primal gut-wrenching fear is why the market crashed. 15 months later, the dow did retrace in 1987. neil: that's right. you're right, we finished the day a little north of 1700. look at the dow now, over 23,000. >> you had nicholas brady saying we got to do more market regulation. alan greenspan was the guy who said dial back on market regulation for now. see what happens. neil: he provided a lot of market liquidity. >> right, he had been, neil, he earned his spurs. neil: i think i talked to you that day. >> we may have. we may have. it's very possible. but the big difference is greenspan that day was actually out of town. he knew that there was a little bit of chaos on wall street and he got off the plane on that day and said how did the dow
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do? and someone said down 532. i think that was the number. that's not so bad, 532. no, mr. chairman, 532! >> the wednesday the week before we fell almost 4%, the next day 2.5%, the day after that 4.6%. were they ready for something big? >> the friday, the first triple-digit loss. neil: that's right, that's right. >> first triple digit move. >> friday was a tip-off. honestly, i do remember so clearly that weekend, and i said something is going to happen. they were horrible that monday. >> storm in london. blackouts, the asian market started to sell-off. australia, spain, the uk. today we have computerized trading. neil: did that accelerate it? >> no. >> i think it was the accelerant. neil: portfolio insurance, we come up with creative ways to avoid something but invariably get it. >> it was portfolio insurance
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jo explain what that was. >> buying futures and it just kept feeding on itself. neil: because everyone was trying to leave at the same time. >> and basically despite greenspan and everything else, what saved the day, may have held the whole shebang, goldman sachs, willingness to buy futures and call options, i'm not sure which. neil: a lot of big companies, peter lynch famously was buying stock later that week. ibm buying its own shares. >> intel. neil: right. so you see acts of bravery like that with willetts falling. ronald reagan had an interesting reaction to this that he didn't have a reaction to this. in other words, he didn't panic. >> that's interesting. >> channel 7 that weekend saying what crash? the markets are up or down a little bit for the year. >> because the market from january to august and took out 500. the economy, the u.s. economy was growing about 7.6% that
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year. so the economy was -- no, the economy was growing. >> maybe nominal growth. neil: were the fundamentals okay? >> fundamentals were fine. neil: i'm not yelling. >> i'm sorry, i'm sorry, neil. >> i'm kidding, kidding. fundamentals were fine. the argument is officials at the time in 29, the fundamentals are fine. when i hear fundamentals are fine, interest rates are low, i know history doesn't repeat, but as you remindly, lizzie, it rhymes, that something else could be the catalyst. is there something you worry about? >> interest rates going up. north korea and also -- neil: that would be a black swan development. >> we have more fragmented market than ever before. we have a dozen trading exchanges, 30 off exchanges, dark pools and only 20% of trading on the nyse. neil: the new york stock exchange. >> one big difference is that in 1987 -- a couple of big differences, 1987, a crash was a very foreign event.
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most people at that time had not seen the 1929 crash. neil: you're right. >> they had not been alive. so market crashing, that was something no one saw as a possibility. neil: everyone saw this presaging a recession that would last for years, what do you worry about most, charlie? >> what prompted the crash in '87 was the illusion that risks were hedged. neil: no such thing. >> when it comes it's ugly. and right now, there is some concern that we could -- there's belief that hedging through futures and options like that encourage excess banking. neil: margin against some. >> margin debt is very high right now. >> you think it could happen again at this magnitude? >> right now we have circuit breakers in place. neil: it wouldn't stop it? >> wouldn't stop it, no. >> the most frightening event you want to focus on over the past couple of years that gives
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me pause is at the beginning of 2016. we were doing fine. this economy was starting to grow, et cetera, yet we had the worst ever january we have ever had including 1930. and the cause was china. they had a crash in their currency. they had a crash in their market. back in 1987, we were the entire world. neil: it could happen again? >> yes, it could definitely. neil: how soon? >> i pray not. i mean if i could predict. neil: next week? week after? months? >> someone could hack into our systems right now. we're vulnerable. neil: how soon? >> it could happen, if it does happen, maybe next year in the first half. >> i think it could happen again. i don't know when. neil: thank you very much, because i don't know either. all i know is if you step back from the charts and these guys are the expert, the one in my office they keep of the dow from the beginning of last century, it goes up. the closer you get. jagged edges but invariably
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goes up and grows up, too. i'm getting nasty e-mails from people looking at coverage years ago saying not only did you not go through puberty, you haven't gotten smarter. can you believe that? more after this. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent
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. >> we believe everyone should stand for the national anthem. that's an important part of our policy. it's also an important part of our game that we all take great pride in, and it's also important for us to honor our flag and to our country, and we think our fans expect us to do that. neil: all right, roger goodell, nfl owners want players to stand for the anthem. they're not going to force them to do that. what is the result of this powwow in the big apple? to sportscaster and legend warner wolf. warner, nothing changed or did it? >> no, big joke. weak. goodell, weak. owners, weak. i thought i was watching dr. adam corey. neil: what's going to happen? obviously, walking a thin line, i understand that. but nothing is really changed, the players opt out, there is not punishment for it. the fans are ticked off and i imagine the ratings continue to
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slide. >> here's the deal, here's the way i look at it, neil, you're right. let me say, first of all, in the by laws of the nfl, there's already a written policy that says the players should stand during the anthem and the flag. so why not enforce the policy? and you know what? if they don't, then you know what, dock them one game's pay for every game they don't. after you enforce the policy, and then if they still refuse, that's breach of contract. owners, they really don't care about the fans because there's always going to be fans going to the game. until the sponsors say oh, we're losing the ratings, not going to pay the same fees, then the nfl will do something about it. that's the thing. neil: i'm wondering if behind the scenes in the meetings, the owners were trying to do some basic, you know, ross perot
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charts to show this is the revenue we have now, down from last year, this is what we're projecting next year, all of us share in the revenue, including you guys, it's not going to be as much revenue. do some of the players who continue to neil the anthem out care? are some of them paid so much right now that whatever revenue they lose isn't consequential and they don't care? >> no, they don't care, and i don't think they get it. you know what? you are going to have the players during the off-season, february, march, april, june, july, go with a police officer, be with them, and see what it's like to put their lives on the day every day for $50,000 instead of average of 2 1/2 million. they would have a different view, and again, i've said this before. 75% of the nfl players are african-american, and deservedly show at their positions, but instead of
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zeroing in on the small percentage of police brutality in this country, what about the black on black lives, if that matters. 700 people murdered in chicago! how about that! they don't say anything. what about domestic abuse, which is high among professional athletes and college athletes? they say nothing about it. they just zero in on this one thing, and i'll tell you, to me, it's like -- it really is disgusting. these guys are overpaid entertainers and they don't get it. they just don't get it. neil: well, the numbers, whatever their passion on either side, are not going their way. warner wolf, thank you very much, good seeing you. >> thank you. neil: barack obama, remember him? on the campaign trail in new jersey. first time, first campaign sort of activity on the part of the former president. what joe piscopo makes of that coming to his state. after this.
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our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online,
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but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground.
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. reporter: welcome back to cavuto "coast-to-coast," i'm nicole petallides on the floor of the new york stock exchange after a record-setting close yesterday above 23,000, down 25 because of apple. a couple of pieces of news causing apple to sell off, now down over 4 bucks at $155 and change. the first is there was a snag in china. watch, the cellular service was cut off abruptly without explanation in china. that caused concern. coupled with the fact that there have been reports of slashing as the production of the iphone 8 because the 7 is outselling the 8. oh a sell-off there for apple weighing on the dow jones industrial average, and then there is ebay which is down 1.5%, coming out with quarterly numbers and the forecast which noting that costs are weighing
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on their forecast, and also some comments from morgan stanley that the company needs to spend in order to grow and lowering its price target by a buck to $33 so with that downgrade to morgan stanley that weighed on ebay. right now down 27 points, neil? neil: all right, nicole, thank you very much. president obama by the way is going to be something for a democratic gubernatorial candidates in new jersey and virginia, the only states having gubernatorial elections next month. i was watching, or part of the new jersey gubernatorial debate, there was also a baseball game going on, but, but, i was watching this, and i'm telling you, i don't care where you stand politically but on pure yucks alone, i was missing joe piscopo in the debate. it went well, they are fine people. i'm sure either would make a fine governor in the garden state. joseph is here with me now. the president could kind of grease the skids for
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mr. murphy, at least in new jersey, i imagine the democratic candidate up by a little bit in virginia. so is this a test of barack obama's juice here or understood that the democrats have good chances in both states as it is? >> you know i said early on, very tough for the republicans to win, in jersey, we always do the opposite. in jersey we don't care, we're not impressed with anybody. it doesn't make any difference that the president is coming to town, nobody cares with, due respect to president obama. he is a rock star. neil: chris christie overcame it the last two elections, right? now they're campaigning against him, right? >> well, yeah. there is no specifics on the progressive side. kim guadagno did a great job, she has points and issues about property taxes, the other side, there was nothing, but they bring in the big guns, nobody cares, when donald j. trump had for president, who did they
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have? when hillary was there, who did they have? madonna was there, lady gaga. who did trump have? he and scott baio. that was it. [laughter] >> everybody went piscopo and bayo? that's all you bring me. neil: you didn't fool jersey you know what's going to happen, let's say the democrat wins in both elections, people say this is an agenda on president trump and be worried republicans, what do you think of that? >> that's what i love about new jersey, when i tell you nobody cares, it has nothing to do with that. if donald trump came to town does, that make any difference? we are not impressed with anybody. bruce springsteen, one of the greatest rock icons of all time. neil: a great human being. >> he's a great humanitarian. but he walks down the street and people say bruce, how are you. hey, man, hour you?
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>> fans bump into you -- out of my way! >> don't make eye contact. neil: joe, let me ask you, i know i joke but i do mean it. a lot of people were seriously looking at you to run, and you opted not to, for whatever reasons, it's personal, that's fine. with all your suck didn't want to take the financial hit, i can understand that. looking at it, do you regret that? like when you see -- and i know there are some things you are passionate about, you are big on answering questions directly, you are very fast on your feet. let's say the debate we were treated to last night was not of that caliber. what do you think? >> yeah, honestly, yeah, i really, really wanted to go, in i wanted to go in as independent too to have fun, because i know the issues, but i stepped down for lieutenant governor guadagno who is a great gal. she's a formidable candidate with respect to phil murphy on the other side. one day, it's in me, i don't know what it is.
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if you have the ability to help people and then don't care what the political community thinks, but you care what the people think, and that's what we got to do do. neil: you see turning back to a democratic governor, nationally this represents a tie die. >> you can't track jersey nationally. no. neil: virginia too, i'm throwing that into the mix. >> jersey is on its own, we don't care. you are so funny. i'm a corporate guy, doit morning show, we did a business breakfast. and your girl called. we're cost effective which translates to very cheap. they go, mr. piscopo, mr. cavuto would like to send a car? where would you like to send it? holiday inn. no, no, holiday inn express! it keeps you humble, man, you know what? it's all about humility and understanding and being cost effective like that, so i would
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like to -- neil: camera looking, that's the debate last night. >> i know, but the yankee game was on. neil: the yankee game was on. >> it was all about the yankees yesterday. neil: we can hope people were watching the yankee game. we'll have a lot more including a read on the dow down 28 points. is the president the guy who got this market off the map. we were down triple digits. not now. what's going on. we think we know! after this.
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. neil: all right. this is the race how it's shaping up in virginia. the gubernatorial race right now. the democrat has a comfortable lead over gillaspie. in the other state, we're having a gubernatorial contest, the only other one. the read on all of this with larry sabato, best-selling author and the uva center for politics director and svengali.
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looking at it, larry, what is your read if the democrats pick up wins in both states, buoyed by president obama, you know, campaigning for each of them today. what do you think? >> my advice to people is not to overinterpret these off, off-year elections, take the virginia race, ralph northam is favored. you can argue about the margin over republican ed gillaspie, it's not impossible, we all remember last november, right? but let's say that the democrats win virginia, they are certain to win new jersey, look at virginia. what does it mean? well, i went back to the 1960s all the way to the present, and i plotted who won, which party won and looked to the next year's midterm elections, and you know what, neil? half of the time the outcome of the virginia race predicted the outcome or the direction of the midterm elections and half of
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the time it didn't predict the midterm elections, so any coin in your pocket is as good as any pundit. quote me on that, neil. neil: so let's wonder about how, obviously, democrats have a good night in the two states, the democrats are going to crow and say this is a statement, a verdict on donald trump. they're going to try to convey frustration out there and what happens when they do that. what do you make of that? >> trump is a factor. you can't deny he's having some impact, and certainly in virginia where popularity is the 30s. virginia is the competitive race. look the winning party always overdoes it, that's is their right if they win a key race, but let's remember, new jersey is pretty strongly democratic. yes, chris christie won twice, the norm is to elect democrats. in virginia, it's competitive but virginia leans democratic. i can't believe i'm saying
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this, i grew up when virginia was one party democratic conservative, and then became solidly republican, but it's changed again. population has changed. it's now a lean democratic state. the only southern state that hillary clinton won last year. neil: do you get a sense, though, that in a year where you would think that republicans would be in some trouble given the low poll numbers donald trump isn't getting that they should be worried, that is democrats, because they're not raising nearly enough money, and republicans are, and what's more, they're having a devil of a time fielding a clear consensus now, not only on candidates to run next year, but candidates to run two years after that for president. i mean could this be a floodgate. >> well, neil, here at center the for politics, we counted a mere 32 democrats who are either running or clearly looking at running. neil: wow. >> just 32. now each one of them has a one
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in 32 chance of being the nominee. i don't think there's any clear favorite. if you got in, i'd probably make you the favorite, neil. neil: it's incredible. that point is true what you're saying, there are quite a few, a record number interested in running for the democratic presidential nomination. >> yeah, it's amazing number and that gives them lots of opportunities to slice themselves to ribbons. let's be honest and look at even what's happening in the democratic national committee with some of the members of the committee getting tossed out for one reason or another. this is still a faction ridden party. it's the clinton establishment faction versus the bernie sanders insurgent faction. of course the republicans are divided between the establishment and what you might call the bannon-trump revolutionary party. i guess both of our parties are badly split, maybe we'll get four party nominations in 2020, that would be exciting.
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neil: our old haunt, italy. larry, thank you. good seeing you. larry sabato. >> great, thank you, neil. neil: what won't cities do to get amazon to put up stakes in those cities? the effort to do just that, that sometimes borders on demeaning. six in the morning.
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she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. or a little internet machine?
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. neil: all right, the president is meeting with janet yellen today. we're learning from the vice president at least that he favors john taylor for the next fed chair. gerri willis examines that short list and how it's looking right now. what do you have? reporter: that's right, neil, and the candidates are -- number one, gary cohn, that's the current national economic council director and former goldman sachs executive. as you know his criticism of the president on his handling of the charlottesville crisis thought to make his nomination unlikely. two, current federal reserve member jerome powell said to have the support of treasury secretary steve mnuchin and favorite gradual approach to winding down the fed's crisis era stimulus programs. number three, stanford economist john taylor, very critical of the fed's easy money policy. advocated the fed use a mathematical formula, he
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advised republican candidate mitt romney and bid for the presidency and as you said pence is a fan. four, former fed board member served as adviser to president george w. bush, favored by mainstream republicans and considered a shrewd political operator. and last but certainly not least, janet yellen served three years as fed chief and incumbency has benefits, according to the "wall street journal." new presidents nominated the sitting fed chief for another term even if he was from the opposing party. don't think there is not disagreement on taxes, health care, republicans are far apart. neil? neil: the republicans argue on janet yellen's behalf, keep the good times going. they don't own a party label on that. thank you very much. >> you're welcome. neil: cities that want to bid on amazon's second
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headquarters. at first i thought they were saluting the mets or thinking they were in the playoffs which they're not. deirdre bolton following all. this seems like a massive nationwide suckup. reporter: exactly right. you are not alone saying what's with the orange? honestly one mayoral candidate for the fine city of new york said like pretty lights isn't going to do this. what needs to be done is what the new jersey governor chris christie is doing by saying, hey, would you like a $7 billion tax break? we can accommodate you if you come to newark. a lot of people saying new york can light up whatever buildings it wants to light up in orange, there were snarkier comments, i'm not sure people are getting orange is the amazon color, they are thinking the city is festive for halloween. neil: what exactly is going on? >> exactly. neil: has amazon tipped its hand. >> only a list of things they're looking for.
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metro area with more than a million people. this is why everybody wants it. there are going to be 50,000 jobs created over the next 15 to 17 years. so this is why every single city is saying, we want to be part of this. right? so amazon has said they need talent, they need a workforce, a million people. want to be near international airport. they need a good mass transit system, but aside from the guidelines, they haven't offered too many other ones, smaller places have been doing creative things. tucson, arizona built like a 20 foot sized cactus and sent it to the seattle headquarters. you have a place in georgia saying, you know what? forget the name of this town, we will rename our town. you have a lot of big efforts. i actually have to tip my hat to the new jersey governor chris christie, it's a business, right? so this is all fun, but $7 billion in tax credits may move the needle. neil: that is tangible here.
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in amazon's case, people argue tax credits the company that makes a gazillion dollars a second. they're going do you need the breaks? all companies need them. microsoft gets them, apple gets them. they all get them, right? >> it's a matter of which city with the idea, 50,000 jobs, right? in the day we keep talking about, jobs, jobs, jobs, people are saying that amazon has a moral imperative to choose a place that has been downtrodden, which is part of the newark, new jersey pledge. neil: newark could have more of an edge that people think, it would desperately need it more than the other locales. >> people point out it never really recuperated after the riots in the late 60s and been suffering since and had a hard time finding footing. a lot of corruption as well. neil: when are we going to know? >> i guess before midnight. we're going to be like -- i'll let you know, i'll send you with a mets sticker.
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neil: she's already volunteered to work until midnight. we're down about 20 point, donald trump with talk of a deal imminent on a budget. all of this on the 30th anniversary of the 1987 crash. deirdre was not alive for that. i was. can i tell you this much, the conditions then, conditions now couldn't are more poles apart. people always remind you, history might not repeat yourself but it does rhyme, some of the rhymes, after this. the smart ones look to fidelity to find them. we give you research and data-visualization tools to help identify potential opportunities. so, you can do it this way... or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just $4.95 per online u.s. equity trade. fidelity. open an account today. ♪ . . . .
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neil: it is the chart of the day. this is big lesson of the chart of the day, 30 years after we were free-falling on wall street. if you had invested then you would have gone up. that is the history of the dow up over 100 years. big gyrations within that chart. if you step back and look at it, trish regan, up, and away she foes. trish: moral of the story, do not bet against the dow, do not bet against america. neil: very true. trish: president trump said he and republican party have the votes to pass the budget, paving the way for massive tax cuts. the senate is ready to vote on the 2018 budget hours from now. i'm trish regan. welcome to "the intelligence report." markets down 23 points. still nice to see above the 23,000 level.

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