tv Cavuto Coast to Coast FOX Business August 16, 2019 12:00pm-2:00pm EDT
he described the communist party as evil. he would not negotiate with it. owe decided to call the tianamen square incident, pure slaughter. a brave young man on this program a few minutes ago. connell mcshane. connell: thank you, stuart, i'm connell mcshane filling in for neil on "cavuto: coast to coast." will the world's problems catch up with us, and what can the world do about its problems? we have comments from germany and china also we'll get into. if you look at polls, elizabeth warren is surging on the democratic side. president trump saying a warren
win would lead to a total meltdown especially when it comes to markets. stuart talked about hong kong. we're watching it closely. we'll have a run on the banks we'll talk about. a big weekend ahead in hong kong. we'll look live where tensions stand right now. let's get to trade, how governments are reacting to what is happening. the dow is up 275. we're ending week on up note. we have a few hours to go, still down overall for the week whether governments are aware we'll get to that in a moment. new stimulus could be helping stocks. hillary vaughn starts us off at the white house. hi, hillary. reporter: connell, president trump says the september meeting with china's trade delegation is still a go. he talked on wednesday with chinese trade officials. he is expecting a call soon with president xi. he said if china dares to
retaliate against september first tariffs he thinks the u.s. holds the ultimate retaliation or ultimate form of retaliation. >> i never said china was going to be easy but it is not tough. they want to make a deal. we just spoke to them yesterday. they want to make a deal. they want to make a deal. they have to make a deal. you know what, it would be wonderful to make a deal. i don't think we're ready to make a deal. reporter: china's announced changes to stimulate their economy by lowering real interest rates to make sure funds costs for small businesses drop by 1% this year. jpmorgan's chief economist says fresh september tariffs will test china's ability to boost its economy but protect its businesses and workers from the impact of u.s. taxes on chinese imports. trump says dragging out trade talks really hurts china more than the u.s. >> no, i think the longer the trade war goes ons the weaker
china gets, the stronger we get. we're taking in massive amounts of money, billions and billions of dollars, steve, as you know. i think longer it goes, stronger we get. i have a feeling it will be fairly short. i think it will be, china's lost millions of jobs. reporter: they say they have been actively working with china to make sure they follow through on their promise to buy more u.s. ag products and he also reiterated yesterday that he does want to put hong kong on the table to make sure china resolves that humanely before any trade deal is done. connell? connell: short term that could be a real key. hillary vaughn on the north lawn. we'll take a bigger picture world view on all of this. if you see what is happening in the world, heard it from the president a moment ago, protectionism is gaining ground. look at that there are questions out there what that does to economic growth, whether you
agree or disagree with it. at the rally president as he often does got into this, hitting back what he calls globalism. here he is. >> globalism enriches globalism foreign count is at our expense. i love our country. i'm the president of the united states of america. i'm not the president of the world. as long as i'm president, america will never bow to a foreign nation like we were for some years. connell: crowd loves that obviously. "wall street journal's" chief economic commentator greg ip though joins us from washington, says this kind of decline in globalism, greg, or globalization, whatever you want to call it is that a real risk? is that what people are looking at when we have all the recession talk this week? >> connell, you look at around the world a lot of things are bothering markets, manifestations from a same phenomena.
that cooperation make everybody richer. you heard what makes the rest of the world stronger makes us weaker, vice versa. the president and his advisor peter navarro were fairly clear this week they were trying to weaken china with their tariffs. they thought that would make the u.s. stronger. in short term that is not taken well by the markets and so on. stepping back a little bit, britain, taking a much harder line on leaving european union. italy,salvini, want to be the sole prime minister. he is very conservative, anti-immigrant, anti-eu individual. populism on the rise in argentina. for example, between our allies in japan, those countries are on the verge of a trade war alone over these ancient wounds. what i'm trying to say here, it is not just a trade war here or a tariff there. there is an overall rise in nationalism, retreat from globalization, which explains a lot of anxiety in the markets
and the economy. connell: the thing you wrote, excellent piece about this the other day in the journal, you put it in historical context which doesn't necessarily say globalization was great and everything was working we should stay with it, but when we change, when we have big changes often times they're followed by downturns. in your opening paragraph, this is really good, when assumptions how the world works are shattered, a global downturn is often the result. you talk about, in the '70s, we found out no more cheap oil. in '80s we figured out? countries actually can default. in '08 we figured out mortgages and banks were not as safe as we thought they were. >> yeah. connell: is this a transition period or are you defending, not that many people are, are you defending this global order, globalization? >> i'm trying to step back whether globalization is good or bad. you said the word transition. that is exactly right. we're going from one state of the world where we assumed there would be lower and lower trade barriers between countries, more and more freedom of capital,
movement of goods across the borders to a world no longer true. whether you like brexit or not, whether it's a good idea or not. we have to get used to the idea that britain will no longer be part of the european union. if you have large investments in supply chains, that there would be seamless, movement across the european british border you have to reevaluate. that is painful process. connell: right. again it may end up, it may not, even if it ends up okay, long term, to matter what you think in the short term like the trade argument. there is short term pain. that is your point, right? >> to use historical example. we can see it was foolish to think all american mortgages no matter how spotty were 100% safe. a stupid assumption. we should not allow our financial system to be leveraged on assumption. we see that was a dumb idea, but
transition when we went from when that was conventional wisdom to say, hey, no, that is not a good idea, that was very painful process. connell: oh, yeah. >> i'm not for a moment saying what we're facing now is anything like 2018 and 2009. a lot of leverage, propagate tore of amplifier of shocks is gone. that is not there. we have real interest rates around the world near zero and so for the. we do not have central banks by and large making matters worse but when you transition from old world, to a new world, there is a lot of friction a lot of breakage, a lot of anxiety, do not expect it to be smooth sailing. connell: as always, thank you, greg ip. interesting what we heard out of germany now, according to report from the german media is open to more deficit spending amid recession fears. the talk germany is in recession or headed into recession. we have seen yelleds in the u.s.
come back up a little bit, up 1.56 for what its worth. as larry glazer joins us. that is interesting, larry, germany is essentially saying we will spend a bunch of money i doesn't think they even had, to get money from people we may not be able to pay back because of negative interest rates. it's a crazy world. what do you make of it. >> if you look off in the horizon you hear footsteps of recession getting ever closer. those footsteps may be in europe right now and certain countries or industries in the u.s. affected by global trade. they are not here yet in the u.s. economy as a whole. you have to take a global flavor to the bond market. low yields proffer resistible to politicians for things like stimulus spending. in the u.s., the election cycle is only trick we haven't played is infrastructure. europe is about to do it. europe is six to 12 months ahead
of us in the cycle as you mentioned with negative interest rates in germany. the u.s. in a populist world nothing better than putting people to work with infrastructure spending, low interest rates throughout the world will enable that. i think small businesses in the u.s. have taken that cue, may have become more defensive in nature. consumer in the u.s. has not taken that clue. they have the ear pods in. not hearing global footsteps of recession. recognizing playing defense when you see what is happening in the bond market, see inverted yield curve is always a good idea, but playing defense doesn't mean playing dead for u.s. investors. connell: you think finally after how many infrastructure weeks we've had in the united states we'll get some sort of a package done? >> sure. connell: but that only means, kind of getting on germany a little bit for borrowing money they don't have, not paying it back. >> sure. connell: we're not quite where they are. we have positive interest rates, that is it still more debt and deficits here in the u.s. which i guess everybody thinks is fine or? >> sure. well, i think one of the
unfortunate aspects of having a low interest rate environment, it becomes very tempting for politicians to keep their hand in the kitty to continue to spend money they don't have. the problem it plagues future generations. what we've seen in europe, europe and japan are locked into a slow growth world where they can't get out of it. connell: we could end up there too, no? >> that is preview of the movie in the united states. recognizing, these are the best of times in the united states. we're in the longest economic expansion in u.s. history. yet we're spending money we don't have like drunken sailors in washington there is no fiscal restraint. learn from mistakes in europe, learn from mistakes in japan. don't repeat the mistakes. as we all know, everything in the election cycle, everything is fair game. it sounds great in the short run, like eating your cupcake dessert before the steak. connell: what we heard from the spot of hillary vaughn, things
are tough overseas. assault of that, we in the united states are getting stronger. >> that's right. connell: many people argue we're not getting stronger, we're not as bad as they are. where do you kind of stand on -- >> i think that is really good point. retirees in the united states are very low. they're penalized what is happening globally. they're absolutely right in that sense. negative interest rates in germany. get your arms around that in germany. have negative interest rate. who is right stock people or bond people, who is smarter, stock people or bond people. like saying who is smarter, dogs or cats. they may be right. we need to learn from history, what is happening outside the u.s. what happens in the united states. connell: does are smarter than cats. >> everybody knows that. connell: larry, have a good weekend. >> my pleasure. connell: larry glazer. these swings in the market you think this is worrisome now.
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connell: a little politics for this market rally for you. look at these numbers. elizabeth warren in our new poll surging past bernie sanders. these fox numbers came out. how would the economy fare under aggressive proposals especially warren or sanders? you put up numbers, where joe biden is. david bernstein joins us, chris wilson is also with us today. david, i'll start with you, the
thing for warren is has been as fox poll shows a steady climb. people counted her out. she will never amount to anything. she comes out with all the plans. she is up three point, five points. steadily, you know, really in second place. it looks like you can imagine a world right, biden versus warren at end of the democratic race, could you? >> absolutely that would be fairly in keeping how a lot of primary fights shake out towards the end with more liberal and more moderate candidate. elizabeth warren has been doing a really good job, look to talk to people on ground as they do, she built a good organization in iowa. that will matter a lot. coming out of iowa, there will be only a couple spots, as chris knows well from experience with ted. and in this crowded field we'll start to see it narrow down real quickly. i think she has a really good shot. bernie sanders has got to be sitting over there, i kind of field for him. he has been talking about the
issues a really long time. connell: do you think he would ever drop out, not now or drop out, david, take my voters, elizabeth? >> potentially, his support is imploding. he is not winning anything come next year. i think probably have to. you know, must be really frustrating for him to see all of his ideas being front and center, he is not one to carry them. shows you how much timing matters in politics. not 2016 anymore. connell: chris, before the last break, we played it, last night at the rally, president trump said something along the lines, you may not love me out there, kind of has a story some guy he did business with he claims, they didn't really like each other, but the guy liked hits policies at the end of the day on economy, even if he hated him, he would still vote for him. it brings up a larger point, chris, take it first, then david. for democrats if they go too far to the left that type of person, especially, who is not a huge
trump fan, but more moderate or likes his policies, that you know, it could be letting an opportunity slip by here. is that how you see it? >> i think it is smart of the business because right now, the economy is the going to be the dominant issue going into 2020. if it's a good economy, history tells us, all the academic model, shows us, models demonstrate a incumbent president is more likely to be reelected if you have a good economy. connell: can he win in economy slipping a little bit, not recession, going up against someone really far left. >> if he is going up against somebody far left isit provides a certain debrief balance. look at race after race for president if you're moving into downward economy, it makes it far more difficult for an incumbent president to be reelected. the thing about the economy, attitudes lead it to some extent. connell: right. >> consumer confidence index, you really get into a battle
back and forth. i'm old enough to remember 1992 when ever the bush campaign was critical of the national media and democrats, felt like they conspired to some extent to convince the american public was slipping. turns out the economy was slipping. you see some of that now. noticed the democrat party website, twitter account, tweeted out, statement about walmart laying off workers. i think that is sort of a dangerous impact. because that become as self-fulfilling prophecy. connell: allegation is -- trying to talk us into it, a slowdown. >> that's right. connell: or recession. david i want to talk about the democrats a little bit in context of joe biden we haven't mentioned yet. reports out there, people around him are now encouraging him to cut back on his schedule. the idea is, according to the reports they want to limit the gaffs. biden himself says i'm a gaffe machine. they think he too tired late in the day. i guess he will be 77 in
november, right? so the idea, hey, let's limit these, they could hurt him on the trail. what is happening in your view, with joe biden? >> i always think advisors who try to rein in authenticity of candidates have a real problem. this is who joe biden is. people know it about joe biden. yes, it may get him some trouble, by and large, as poll numbers reflect it hasn't really hurt him as lot of people would expected. frankly as i thought earlier on in the race. biden should be out there being who he is, one of the main assets in terms of selling himself, people find him authentic and find him refreshing. that, cut back on that would be i think the recipe to kill the campaign because that is what he has going. connell: that is what he has going. always been like this, i guess. that is the argument, chris, nothing to do with age? he has been saying stuff like this for years, i don't know. >> he is and biden team is in a
bind. they want to run a 2016 campaign and third term and party moved on. he has reduced from 23 national media interviews to nine national media interviews. joe biden is known in the democratic party, if he doesn't identify himself with voters that make up the difference in indiana, pennsylvania, wisconsin, if he doesn't do it donald trump will. connell: if he is head-to-head with president trump could be a different situation. good to see both of you. i move on to hong kong. a lot of news there. protesters are using american dollar to send a warning with china. we'll talk about that. susan li joins us live from hong kong. what a week. we'll see how we close. melissa 4:00 p.m. eastern "after the bell," for major averages looking to avoid a third straight down week which would be tough but we're up 260 points right now. we'll be right back.
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connell: back with a market rally with a word on the consumer. sentiment dropping to lowest level we've seen since january. report out from the university of michigan did decline, august number at 92.1. get to hong kong, with protesters there, have a new wrinkle. look at video from earlier in the week. they have called for a massive atm withdrawal. people go to atm, take the money out, convert money to u.s. dollars. so you have that. plus here on friday a lot of people are planning for the weekend. a lot of anxiety what the weekend might bring. bring to susan li live in hong kong with the latest on all of that. susan? >> yes. so let's get to the atm drawls first, there is cap how much cash you can take at machines of 20,000 hong kong dollars. do the division, that is 1400 u.s. dollars or so we so far
have around 400, apparently, according to, those that are recorded their withdrawals in telegram channel for 1500 members of protest. 400 so far physically, posted pictures that they have pulled out their cash. will this be a big so far probably not. only $9 million. this will lead into the weekend with the on going protests now in the 11th week at this point, heading into the weekend. rally tonight in hong kong, with the central heart of hong kong. they're promoting stage for rallies this weekend. in the kowloon district we hear hundreds of thousands are expected to show up. on sunday another big one expected for central part of the city where we are. incomes financial district where you have all the famous skyscrapers. the numbers should be in hundreds of thousands according to protest leaders i spoke to
night. what about china? we've been hearing reports that they have amassed across the way in shenzhen a few miles from here? not only troops, tanks, artillery as well. speaking to protesters, are you scared of maybe heavy-handed tactics from beijing? so far none of them are. in fact people that i speak to, the experts that have historical look on hong kong, still think that that option is very remote. however, what about a xi-trump meeting? we've been hearing from president trump, hopes for a call very soon with president xi of china. hopes they will deal with the protesters here in hong kong humanely. connell, back to you. connell: that plays into the trade talks. we'll watch your coverage over the weekend. susan li live from hong kong. here in the u.s., we talked about, a lot of people say the economy is still strong here. we still have a strong stock market bouncing back from where we were earlier in the week up 270 on the dow, however a global
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story. we told you harry, accounting expert, he and his accounting team that ge was involved in a massive 139 billion-dollar accounting fraud. ceo of ge said those statements are completely false and to prove that, he bought back $2 million, almost two million dollars worth of shares that helped with the slight uptick. the latest news we're getting right now. siltcitron research. they are condemning maropolis saying he is benefiting from third party urn named hedge funds. all of this for a profit. quote from citron research, marco polo attack on ge, share of mentality is disingenuous does not pass the smell test. cintron said there is a difference between fraud and
aggressive accounting tactics. we're seeing markets higher. dow higher 268 points. nasdaq, 122. trader told me this is crazy. from august 2nd to the s&p 500, it has only dropped five points. getting a roller-coaster, getting off pretty much where you started. germany open to some deficit spending. you know, optimism right now, it is friday, people are not wearing ties here. we have to go towards some negative news we got today. that is home building numbers. you think home building would improve, given low mortgage rates. however it fell, housing starts fell in july catalysts from multifamily housing units. it could be shortages of land, as well as labor. i want to end on a positive note because it is friday.
housing permits to build homes rose to a 7-month high. connell: he did have a tie on. i was making sure you were accurate. this guy have a tie on? >> yes. he has a tie. connell: typical wall street vests. >> i know. connell: kristina, thank you. get back to these global markets. we've heard, you know, it is what stock is up. europe has the stimulus supposedly planned. headlines out of germany, at least a report earlier today. we talked about china earlier in the show. the economy slows down whoever u.s. remains strong. you have the argument do their problems eventually come here? moody's manager, bill foster is here. thanks, bill for coming in. i will get to the u.s. and recession odds which is the theme of the week in a moment. on europe, because, we'll start there, kind of work our way around. we probably should start in china. we'll start in europe.
interesting what germany said. made a big deal about negative rates. now they have a big stimulus planned. what is really going on in germany? how bad are things? >> germany is going through a slowdown. very open economy. most important economy in europe. what happens in germany matters to eurozone. they have a strong industrial command component. what happens with trade and certainly influences germany, i said we should have started in china. in china, or the u.s.-china trade war kind of drags on i assume recession odds go up big time in germany. at this point do you think they avoid recession? they have had a quarter with negative growth. >> the negative way they are feeling is due to the fact exports. they export to china, u.s., others in the eurozone. what is going on rest of the world certainly impacting germany. however, on the domestic demand side, consumption that is supporting feature of the
economy. people are spending. connell: just like here. >> similar to here, we spend a lot more. 70%. germany has bigger export base than we do. so there is a difference. they are open to what is going on around the world. fundamentally, we do not expect a recession to happen. the, the germans have the capacity, fiscal space as you're alluding to provide more stimulus, to get out of a continuing contraction. connell: okay. >> so moving forward we're in the expecting recession. connell: piece of breaking news. i would think it is related to what we're talking about. a headline just crossed. a report that president trump held a call with the ceo's of bank of america, brian moynihan had positive things to say, by the way, i believe. looking at his quotes about the markets. jpmorgan chase, jamie dimon and citigroup ceo. bank of america, jpmorgan chase, citigroup on a call, according to reuters with president trump. they're talking about the economy what happened this week,
volatility. brings us to our own economy, people talk about whether we're heading into recession, moody's, if you were on the call, telling the president, how are things? >> we don't see recession immediate horizon. slowing economy. we expect real gdp growth in the u.s. to be 2.3% this year and 1.7% next year. that is product of the fiscal stimulus from the tax cuts waning. and some headwinds from the global trade dynamics. what is really fundamental to the u.s., comparing it to germany, right? connell: yeah. >> the 70% of the u.s. economy is based on consumption. based on fact americans spend money, buy things, that is the backbone of this economy. that is still an area of strength for the u.s. labor market is strong. retail numbers came in for july. they were strong. much we also have the fed who is, you know, pretty clear. connell: going to keep cutting. >> they intend to cut as much as they need to extend the expansion. connell: banking system, in my
head because this call is going on, if he is talking to the guys at b-of-a and big banks, everything is all right with the rate structure? the stocks were hammered when they were down 800? >> this call has to do -- banks lend to the whole real economy. they should be forefront of the pulse of what is going on with manufacturing, with consumers, et cetera. makes a lot of sense to talk on a regular basis. connell: yes. stability wise everything looks to you not horrible? >> we were talking about the yield curve. connell: yes. >> this week, but also over last several weeks. i think the important thing to takeaway, it is ultimately the yield curve today isn't necessarily the same indicator in years past with regards to recession. >> what is different this time? it is never different this time. >> you talked about negative rates, we never dealt with it before. globally has pressure on term
premium which compresses long end of the curve, to the extent we haven't dealt with that. that is different dynamic. that matters -- connell: the reason this is happening. by definition. >> one of the contributing factors, right? connell: yeah. >> when you look at yield curve. expectations for short-term interest rates. that obviously is coming down with what is going on with the fed. fundamentally something else is going on. not necessarily a clear signal of recession but risk is rising. connell: that is the last point i'll make, on that risk, you guys put odds on it, 12 to 18 months off u.s. recession? if so, what are the odds? i assume whether the fed can come in and save us from anything going on in trade is really the biggest factor, give us your thoughts? >> we do not expect recession. we think the risk has risen, right? but fundamentally the fed is there to support potential downside and structure of the u.s. economy as it is today, is strong enough to weather through some of these headwinds. connell: some of these headwinds, even no china trade
deal? >> yes. but the question is, how much worse is it going to get? connell: right. >> how will the financial markets react? negative feedback loop into the real economy, right? that is real danger. tariffs are raised 25% across all imports from china. connell: right. >> u.s. goes forward with auto tariffs that is a difficult picture. connell: we have a different conversation. but for now we're not having that conversation, at least not yet. bill, good to see you. good talk. we appreciate it. as we move on, we'll talk more, any info we get on the call we obviously pass it along with the president and heads of big banks on wall street. meantime, how about whether the white house can roll out a new health care plan? that is something related or talked about. it was in new hampshire by the president last night. that was a big issue, 2018 for democrats, health care. can the republicans turn it around? we'll be back, talk about that and more with the dow up 273. or the latest phones.
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>> every major democrat running for president support as massive government takeover of health care that would raid medicare and destroy the private health insurance plans of millions of american families that they love. the individual mandate is gone, the most unpopular part of obamacare. we almost have obamacare gone. we're close. connell: on top of comments from last night a top trump health care officialing saying white house is actively working on a obamacare replacement plan. health care expert and attorney brian row telejoins us. while they get it done on gop side? recent past, before the break, 2018 this was a big issue for the democrats. they said, well you only have a plan to get rid of it, you don't have a plan to replace it so what is next? >> hey, connell, what i can tell you is, remember the movie "jaws," chief brodie realizes he need as bigger boat for the
shark? what the president an his folks are realizing obamacare, for those in sector work in deteriorating costing a lot of money in states expanding medicaid. there is lot of folks getting medicaid that should not be getting that in ohio. remember the lawsuit the court of texas upheldthe that lawsuit is going through the appellate court. it may hit the supreme court in june next year. that lawsuit would gut obamacare in its entirety. the president and his folks no, they can't go into general election without a option on the table without preserving something people like. connell: that is my point, gut in it is entirety the timing of gutting happens before the election what happens to real people? you have to have something to plug in there. what would be a plan to come up to counter that. >> connell what everyone seems
to agree with, we make health care as complicated as a rubic's cube with roulette table on it in this country, folks like preexisting conditions being covered. they don't want to be rated as a preexisting condition. that is something the republicans can put on table now. the president supported that. they like having their children up to age 26 be covered. those are two popular components of the affordable care act. the republicans can get that out there and should get that out there. connell: does the math work, brian? does math work on all that? if you're not forcing people to take health care, maybe the math doesn't work, paying for all that stuff, maybe it does. have you run the numbers? >> yeah. connell, great question, because the math works on those two components. what people don't understand about the affordable care act, what i was talking about on the front end, the medicaid expansion, its with never meant, medicaid for supposed to be for the most impoverished, disabled, elderly poor. we lit it up, men, able-bodied
men without families, making $65,000 a year on medicaid. that is not what we can afford. connell: good explanation, brian. we'll follow it politically see if they come up with if anything. brian on health care. story breaking in new york city today, police department looking to question a man in what was a scare a pressure cooker bomb scare in the lower part of manhattan earlier part of today. apparently they're questioning someone on that. we will have details on it coming up for you. don't go away. there's a company that's talked to even more real people
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concerns were raised before the hack took place. that is in on the capital one story. arizona's republican senator martha mcsally is making a push to make domestic terrorism a federal crime. here is what she said. >> we need domestic terrorism, where somebody is using similar tactics to terrorize a population based on their hatred towards a particular group. it lines up with the way we codify international terrorism. connell: former fbi special agent thomas baker. thomas, would this prevent, every time you propose something like this, whether it does anything to prevent future attacks, act as a deterrent? >> connell, it is very understandable that the senator and other people are responding to this cry to do something after we have these tragedies. everybody wants to do something, but quite frankly, creating a new law, a new federal statute
might not be the answer. connell: what is the answer? there has been all kinds of talk -- >> currently, fbi, other federal agencies, they have a lot of tools in their kit to address domestic take rich the same way they address international terrorism. the fbi has been addressing domestic terrorism for half a century. we always carefully do it within the bounds of the constitution with the bill of rights always in mind. and, the danger of making a law, just, banning domestic terrorism has such, is there is danger you could drift into the area, looking at what people think, what they advocate, who they associate with. there is enough criminal statutes on the books right now, good tools, that the fbi has, other federal agencies, state and local work effectively with. connell: kind of, infringing on
civil rights issue for you? go too far, be careful what you wish for type of thing? >> well that is the danger. you start looking what people are advocating. the focus has always been, director wray has spoken to congress about this, assistant director in charge of counterterrorism, the focus on the fbi is on people that advocate violent acts or undertake violent acts this goes back to the '50s, and the '60s, we the fbi undertook great work against the ku klux klan for instance. they were conspiring to deprive other americans of sill rights. that was a violation then, this is a violation today. connell: get your thoughts, we had a little scare here, turned out to be nothing in new york city, nothing dangerous at least, we have a new picture with the police describing as a person of interest in the scare in the subways, involving
pressure cookers, three devices abandoned in new york city subway stations. pressure cookers left there, may have been left by the person, calling it person of interest in the case they put up. the question now, if it is this person, tom, what was the goal here? trying to scare someone? maybe a device wouldn't work? those are types of things they're looking into, right? >> there is phenomenon with terrorism. we see it particularly with international terrorism. john miller in new york has spoken to it in the past, some groups do dry runs. they want to see law enforcement, government, how they respond, tactics they do in responding removing devices, in the area. john miller, people in the police department, fbi in new york that is the back of their mind this could have been a dry run to test reaction, learn the reaction of law law
enforcement. connell: that is interesting point. john miller was there at news conference. they look how they respond to test themselves? >> sure. connell: thank you. good analysis. hadn't thought of that particular side of it, as we move back to what we're talking about all day long, rebound in the market. we'll talk about the rebound up and down, all around. up 275 on the dow. nasdaq doing the best in percentage terms, 1.6% advance for technology stocks at that mostly make up that index. and the questions are still out there about the global economy. how much is it slowing? whether there is recession? or whether investors went too far too fast earlier in the week. we'll be right back. truecar is great for finding new cars.
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we'll see. a key fed player says we have the ammo to survive a slowdown. we will talk about that. to politics. are joe biden's blunders hurting him with the bundlers? they are supposed to be giving him all the money. we will tell you where the money is going. then the question of whether greenland is for sale. that has come uppe, believe it not, and whether we're buying. hour two starts right now. connell: there it is. market rally, we are rebounding today. we heard about the stimulus plans, china making the announcement, germany saying they will have one ready to go if and when it's necessary. supposedly. according to a report over there. so that's helping i believe markets. we are up 280 on the dow. still set to end the week to the downside after the crazy volatility we had earlier in the week. trade uncertainty and recession
fears leading to all that. the st. louis fed president, though, some interesting comments on this network, james bullard telling fox business he's not exactly worried. let's listen. >> i think we can get through the global slowdown but i think things will stabilize and you will have a good run over the next couple of years. connell: the former chair, former fed chair janet yellen saying don't read too much into all this talk of an inverted yield curve. >> i wouldn't really urge this, on this occasion it may be a less good signal, and the reason for that is that there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term
yields. connell: we welcome our panel. dan schafer, here with us today. dan giltrud joins us alongside political college professor. what a week, right? dan, you can start us off. we will work our way down on some of the comments you just heard. that's the big debate about whether we will be all right here or are on our way to a big recession. where do you stand? >> i think that we are going to be okay. i actually agree with the commentary we heard. i think the fundamentals of our economy remain strong and quite frankly, i think the market overreacted this week. i don't think there was a real basis for that type of drop. yes, there are concerns about trade with china but we have had those concerns before. this process is going to be going on for quite some time. the inverted yield curve, i mean, that lasted, what, a day and everybody reacted to it. now we've gone back more into what it should look like.
i just think it was an overreaction. connell: that's kind of the debate. you can pick up on this, about whether the troubles overseas which most people acknowledge are real troubles, in certain countries end up hitting us, so where are you? >> i'm from the technical side of it and the fundamental side, because i'm a trader. i look at what's going on. i find it's very ironic the federal reserve over the last four weeks has been doing reverse repurchase agreements with banks, taking money out of the banking system. there's a correlation with the stock market and when they do this. they haven't done it today. if you look on the fed website, the st. louis fed, zero today. look at the market. there's something strange going on that the fed doesn't know what's going on. i just played that clip. he has no clue what's going on. you can look at his face, the way his posture was, he's saying things just to say things. they don't know what to say. the fact of -- connell: we know what they are going to do. they are going to keep cutting rates. >> i'm not sure about that. connell: really? >> with respect to dan, the yield curve thing which i have talked about for three or four
years, it's been slowly narrowing, the fact of the matter is it's different than it was in 2006, because the yield curve at current rates with the 30-year making new historical lows, below 2%, and the ten-year at 1.5%, we haven't seen these low rates with an inverted yield curve before. this is signaling to us the global economy, that's why germany had to make a comment this morning, that there's something bigger coming, and they can't control it. that's the velocity of money. people are not spending, people are not making money and people are looking for bargains and that's causing prices to decline in the marketplace for goods. that's big. connell: all these arguments out there about what this means for president trump, it's kind of obvious. the economy turns south, that's his best issue, and that would hurt him politically. that's not exactly breaking news. the hope from the president's point of view, he talked about this week he hopes everything holds up, the consumer will be all right. fact is, we don't know. >> we don't know. i would say there are positive signs for the economy.
consumer confidence and spending being one of them which is a driving force for the u.s. economy. the issue of the inverted curve is of course, it is always 11 months preceded a downturn but every time you get one doesn't mean there's a downturn. so you have to look at what is some more complicated than just the headlines. in terms of trump, of course, you are absolutely right, you look at the fox news poll just out, he has always done better when the economy, any incumbent president does better when the economy is good. the problem for trump is that is where he is above water. everything else, he is under water. connell: that's true. every other issue, reason i bring it up, i want to play part of what he had to say last night. these rallies, always a little different than white house event, but he plays it up but he made this case a number of times, kind of this warning better be careful if i don't win, you guys are all in trouble. here's the president. >> you have no choice but to vote for me, because your 401(k)s down the tubes, everything's going to be down
the tubes. so whether you love me or hate me, you got to vote for me. connell: whatever. so the thing is, it's funny obviously but it's interesting also, because we were talking about it earlier, this argument where there are some people like that, right, that look at the president and say he's making me money, i heard that a lot from wall street type people, i don't love the guy but he's making me money. those are the people he's talking about. >> right. but put it this way. give or take, there will probably be 60 million people who will not agree with what he said and will not vote for president trump. connell: they wouldn't vote for him if he cured cancer. >> you have the people who love trump, you have the people who hate trump, then you have the people in the middle. those people in the middle are going to decide this election. connell: on the economy, don't you think? >> i agree. i think the economy is the major issue. that's why president trump has to be really really careful about how he's handling china,
how the stock market is doing, and i think ultimately, and we have some time before the election, but i think ultimately, the president, everything is going to override his decisions. my re-election, the economy, they go together. connell: you cut a deal with china, does that solve everything tomorrow or is it not that simple? >> i don't think it's that simple that it solves everything. i think there are a lot of people in the administration even who are hoping that he does cut a deal. this has been a commitment of president trump's long before he ran for office so i'm not so sure he's going to do that. i would just say the clip you just played, that is the major message for donald trump. he's both there recognizing that people don't like the tweeting and the comments, but yet people are very happy about the economy under trump and he wants to make the message you elect a democrat, this economy falls through, hence -- connell: 100%. we will talk about this later. that's why it depends who the democrats nominate because it's
going to be a binary choice. >> he would like it to be hillary clinton again. connell: he would probably like it to be warren or somebody far left. >> i don't know. she's running a good campaign. maybe sanders. connell: she's going up in the polls and he's going down in the polls. you have a different view on this? >> i always do. connell: i knew you would. it's probably based on something that's happening in the markets or whatever. >> not just the markets but history. connell: okay. >> there are times when presidents can get re-elected in a bad economy if there's a military action. we are now in -- connell: bring us a whole wag the dog type of thing? >> no, not wag the dog. listen, it could be. who knows these days, what's going on. the fact of the matter is the world is becoming more unstable. as the world becomes more unstable, even if the economy is going down, people are going to look for safety. they will look for safety in a leader. you don't normally change a leader historically during times of conflict. connell: george bush senior was up to whatever, 80% or 90% after the gulf war. everybody loved, then when the
economy tanked, then that did override that. >> he also said about taxes. so there were some other issues involved there. but the country, not just the country, connell, it's the world. there's a world issue going on, there's too much conflict. look what's going on in hong kong right now. look what's going on in europe right now. look what's going on in the middle east right now. i mean, you are getting a lot of things at the same time which could cause a problem which people will say you know what, i don't want to change my current president because i don't want to have somebody new while conflicts are accelerating. connell: what do you think of that? >> yeah, absolutely, historically, you want somebody who is going to protect the country and there would be a rally around the flag and rally around the president should there god forbid a crisis. the danger for trump right now is he still is under water when you are asked questions about who is the best to lead us in terms of turmoil and crisis, military and otherwise.
that's a problem for him. he's got to adjust that. if he can't, if the economy tanks, and let's face it, 80% of the time an incumbent is re-elected so it's on his side. connell: and a strong economy, especially. >> there is also these other issues about the way he speaks which turns people off. but in accounting, it's called substance over form. you got to look at the substance of what he's saying, not the way he's delivering it. connell: that's the whole thing, i think. that's what we were talking about. that's the whole point. if the market holds up and the economy holds up, people will ignore those other things. i think the president is pretty much acknowledging that last night. >> i think he is. it's very tough to beat an incumbent president in general. now you throw in a strong economy and it really becomes difficult and with all the things going on around the world, it really puts trump in a position to say the things he's saying. what's your alternative? you know, if you look at the democratic bench, is anybody really generating excitement
right now? i mean, donald trump pre-election was having these rallies and people were showing up in droves. we don't see that particularly happening on the democratic side. i assume the closest would be bernie sanders. connell: he's falling in the polls. the internals of the polls, we will take a break in a second, just a quick word on this, i think it was interesting, in the internals of the fox poll it didn't show the democratic voters want some sort of big change. it wasn't a change election for them. it was something along the lines of we want to go back to quote, unquote, normal. biden is apparently leading. >> they want to beat donald trump and i will tell you big problems with suburban women. do not discount them. many people don't mind the rhetoric. suburban women do. republicans realize that. that's a big problem if he loses them. connell: i want to get that break. you will stay here for the hong kong story. among other things we heard jackie chan getting caught up in the protests over picking sides. details on that and what might
happen this weekend are coming up. then don't miss us 4:00 this afternoon. melissa joins me "after the bell" and we will see how this crazy volatile week ends on wall street. we are up in the stock market more than 1% across the board. we'll be right back. let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm?
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connell: in the midst of the market rally, we stay on politics with elizabeth warren and this fox poll, really, she's been gaining steam. not just that poll but a number of polls over the last few weeks. and you know, with the economy losing steam, is that part of it? it's tough to tell. but the far left policies she's been proposing at least in the primary process have been, you know, there's a lot of support there. there's a debate over how warren would handle a lot of the issues that we talk about here, china trade and other things.
let's get to axios. kate lynn, we have two dans and a jeanne with us in case you hear some voices. but we were talking about it amongst ourselves, it's kind of surprised a lot of people how elizabeth warren kind of steadily moves up in the polls. next thing you know, she's firmly now, at least in the fox poll, in second place. >> right. i think that she is the a alternative to senator bernie sanders where they are both liberal candidates. i think she's really captured the imaginations of a lot of left voters on the far left, or on the left side of the party. so i think as she puts out more plans and shows herself to be versatile and a strong debater, i think that a lot of voters have migrated over to warren and you know, i think she is rising so i think she could be a real threat to joe biden as time goes on. connell: that's a question.
you think this comes down to biden/warren? everybody except for hickenlooper is still on the stage now. you see a one-on-one at the end of this? >> i really do. i think if kamala harris, you probably know better, if she does not survive california, she is done. i think similarly, if joe biden falters or cory booker falters in south carolina, i think they have a real problem on their hands. i do see elizabeth warren just steadily rising and has run a really great campaign, which i think may be a danger for democrats long run. connell: biden still has that advantage. he has a pretty good advantage over someone like senator warren, right? >> it's important to note biden's polling has been about steady. it's not that his numbers are going down while warren's are going up. she's taking primary voters from other candidates. only time will tell. connell: people wonder if he's trump '16 on the other side. numbers wise, i mean. >> i have seen that. i think the thing about biden is that first, he's been around
forever. people understand, being gaffe-prone is kind of his thing. people already knew that. the other thing is biden is, i think, kind of firm in people's heads, where he could go wrong is he's the best alternative to trump. if he proves to be too gaffe-prone or can't keep up or is too old, the obvious kind of attacks we are hearing about biden, maybe that could shake him. in people's minds right now, he's the democrats' strongest choice. even if they like another candidate better, some voters just aren't going to switch over. connell: the whole gaffe-prone thing is interesting. that's why we only book dan schafer early in the day. he's the same as biden. >> you know what, bernie sanders is a little older. connell: his aides were telling him oh, take it easy later in the day, you are more likely to slip up. [ speaking simultaneously ] >> can i jump in on this? elizabeth warren has come on
strong but because the economy is not doing as good as everybody's claiming it is, people are worried and biden is the safety. they already know him. they know the obama policies. they feel he will continue some of that. to bring somebody new in might be difficult. connell: good point. if you think about it, all these democrats have been accused, it started with bill maher but other people said they're rooting for recession, right, and if that's what it is, a slowing economy, maybe you shouldn't be out loud rooting against your country but the political side of it, biden would be the guy that would be more likely to benefit from that, don't you think, because the other policies are so out there that these middle of the road voters may fwhoont to go as far left as certainly bernie sanders or elizabeth warren. >> i think if the economy starts going poorly, the candidate that that hurts the most is president trump. that's his greatest liability heading into 2020.
he's been able to say look what i have done, the economy is great but if that narrative is no longer true, that's a big problem for him. there is something to the fact biden is a known entity. things progressively got better under president obama and biden is strongly associated with obama. just the fact that biden is more middle of the road, kind of a safety, comforting candidate for a lot of moderate democrat voters but also potentially independent voters. i think that could -- connell: i guess -- >> i don't think it's just a matter of he's gaffe-prone. i think what's happening here is he just looks tired. i think -- connell: another word for old. he's 77 in november. we joke around about it but it's a legit issue. >> bernie doesn't look anywhere near as tired. what i'm saying is joe biden looks tired out there on the campaign trail. now you got donald trump calling him lazy joe constantly. connell: sleepy joe. >> sorry. lazy, sleepy. connell: whatever.
>> but it fits the bill. and what happens is people are watching joe biden and the gaffes come out and he looks tired -- connell: but the other point, we were talking about a down economy, what if it isn't? what if the market comes back, is biden the best bet for the democrats in a strong economy? whether the idea is like now you got to run against trump's personality. >> if there's a strong economy, i don't think any of the democrats quite frankly have a chance. >> i will just say, biden, let's not forget, he's run twice and lost. that is a big problem for him. he lost because he does not campaign well at the top of the ticket. i say that with all due respect to him. we are seeing that now. connell: to prove how long he's been around, one of those races was 1988. >> i wasn't even alive. connell: one other thing. >> if the economy does go down, i don't think trump's going to
have an issue with it. i'm different on this. because he will pinpoint as to what the causes were that didn't allow his policies to go through. connell: he will blame it on the fed. >> he will start there. then he will maneuver to whoever blocked his policies. connell: might be you by the time he's done. kate lynn, good to see you. thank you. we move on to a little on student debt, with the students so strapped for cash, how does that affect housing which we have new numbers on today? back in just a moment here. -driverless cars... -all ground personnel...
where we go from here, especially with china, if china is making its own chips and these companies can't rely on china as much. ray wong joins us from constellation research. we have done these stories forever. that's why i wanted to talk to you today about nvidia. that's a pretty good number last night because everybody has been saying watch china with these chip makers but here's nvidia apparently doing pretty well. what do you think? >> it's wonderful. you look at nvidia, they have a specialized chip used for artificial intelligence, autonomous vehicles, gaming, and they've got a cool niche that's hard to beat which is why everybody is coming after that. they had a bit of a miss. people have been worried about them with the china situation and broadly across the board. the semiconductor issue with china is a huge issue, especially given the fact that china's focused on made in 2025 which means they want to do 60% of domestic production. connell: you would rather be some of these other names. where do you stand on all that
decoupling stuff? which is basically to say in the future, forget trade deals and all that kind of thing. we could be going in two separate universes where instead of china buying stuff from us, especially chips, they just say we are going to do our own thing, you guys do your thing, we will do ours, make our own chips. that would really obviously hurt these chip companies. you think that's where we're headed? >> i actually don't. i think china is behind about seven to ten years in this market. it's a $200 billion market, where they are importing u.s. technology whether it's chip manufacturing, whether it's the precision tools that are required, whether it's some of the stuff that's happening in the fabs but there are a couple generations behind. what they are trying to do is steal i.p. to get there. i really think that's the challenge. the trade deal actually creating some very interesting situations where china manufacturing is moving to taiwan, moving back to indonesia, going to vietnam, and what that's doing is actually causing panic to china, because that may set them back another seven to ten years. it's actually, if you look at the counterpoint, it might be
better this way because that means china will be dependent for a lot longer. connell: they have to keep buying, your point, they will have to keep buying from the u.s. companies that they buy from. that business is not going away. it's not at risk. >> it won't be at risk if manufacturing starts leading. they have had several programs where they have been trying to bring in companies like tsmc, umc, bring them into china, learn from them but the manufacturers, they have been really good about keeping their trade secrets, much tighter than what china was hoping because they typically want that i.p. transfer when they get there. this departure right now is causing people to leave and also scuttled a lot of the plans to actually build fabs in china. connell: thanks, ray. always good to see you. thanks for your point of view on all this. just a quick thought on that. when i was in china, that was a big issue, these koeshcompanies others, huawei, will start
making their own chips. what do you think? >> from a fundamentals point of view, the stocks earnings the last two quarters have been less than they were the previous year's two quarters. it's pretty rich, two times s&p earnings. this happened before the tariffs started coming in, the slowdown in the chip industry. full disclosure, i'm short the chip stocks. i have to disclose that. i think this run the chips have had is overrun and that the competition is going to come in and with the trade talks with china, like you said, i think ray's right on the money, i don't think it's favorable for the chip companies, the competition occurs in that fashion. connell: we will move on. we are up 300 on the dow. we will talk more about china but from a different point of view. the military supposedly there is building up a military type police force on the border. shenzhen right on the border with hong kong. will they intervene and maybe think about doing so as early as this weekend? there are huge protests planned both for tomorrow and sunday. we will have an update after this.
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connell: mentioned in the context of hong kong, the actor jackie chan apparently facing backlash for calling the protests quote, sad and depressing. which is kind of interesting because it brings up this question about how much public support there is for these protesters in the streets of hong kong as we head into an important weekend. china says it may be ready to intervene if needed, and that's the question for the fox news military analyst who joins us
now. all right. colonel, we can talk about the public support. we have a reporter there, talking to her about that as well. for the most part, the people are still supportive of the protests even if they are disruptive of day-to-day life but how do you see this playing out? it seems like sxi jinping, the president of china, has a decision to make in terms of do i want to look quote unquote weak in some people's eyes or do i want to risk the fact that the world's going to think i overreacted by moving in? how do you think he handles it? >> xi jinping doesn't care about anybody's opinion except his military and intelligence community that have a lot of control there. the hong kong police, their training and numbers have been overwhelmed by a very successful organization that is rioting. china is behind the eight ball right now, having the airport closed down as many days, and the number of people that are out there, i bet -- my bet is china has got advance teams already in hong kong because
they are going to have to come in and get this riot under control from an economic standpoint alone. and we and the rest of the world, like all other riots we have seen in china or the middle east, won't be able to do a thing. connell: what about the risk, at least the public perception risk that the whole world is watching, it will be on live television and 1989 all over again? obviously xi jinping recognizes that. how does he play both sides there, if he does move in with the military? >> go back on tiananmen square, what was the effect? the world gets upset with news stories but to change what china is doing or russia or any other country -- connell: it's toxic to deal with china after that. now we are in this environment where we are in a trade back and forth, i just thought logically the president of china would look at that and be like well, i'm going against the u.s. here, i don't want the whole world against me if i go too far.
>> he's already got billions and billions of dollars on tariffs from this administration. there's little more -- it didn't affect our economy or theirs in '89. my issue is, it's very very difficult for another country, certainly the u.s., to affect what's happening in places like hong kong or to change what china is inevitably going to have to do. they will get it under control with just massive amounts of soldiers and maybe tanks. it's not a pretty sight in hong kong. they are losing some independence but right now the rioters are winning and china can't thaft to happen. connell: i will squeeze in a question on afghanistan in a minute. you guys want to jump in on the hong kong? >> i had a quick question. i have heard there's a possibility that the chinese government may send in citizens to do the work of the military, to try to go up against the protesters. in other words, either pay or somehow get volunteers in there
to do the work of the military so they don't have to directly confront the protesters. connell: talking about another movement? >> a countermovement, if you will. do you see any signs of that, colonel? >> okay. the answer is the way they do that is they take uniforms off the soldiers and put civilian clothes are. they already infiltrated in. we had a couple instances of it. china is very very active in something like this, as would be russia, as we would be. but they wouldn't have to pay civilians. just take uniforms off the soldiers and put them in civilian clothes. any intelligence community, and their national police, put them in civilian clothes. connell: we saw reports of something like that the other day. >> this is dan schafer. isn't it in the treaty that when the british left hong kong to the chinese, that the head of the hong kong, whoever is head of hong kong has to ask china for help and if china goes in
without the asking for the help, what does that message send to the world? >> the message sent to the world that china's a repressive reg e regime. the world has very little control of it and yes, you're right about that, but china in my opinion won't care. neither would russia or any other country. china is going to do what they want to do. again, economic pressure, we are already doing. there's not a chance we are going to do any kind of military pressure. this hong kong thing has been hanging over or heads for a long time. connell: i think this is the 11th straight weekend of protests in hong kong. i mentioned that i wanted to squeeze in a question on afghanistan. that's because president trump has this meeting this afternoon with some military officials on a potential deal with the taliban. what's your thought on what should and might happen there? >> we had an incident called 9/11 and we went in to war on a
thing called the war on terror. we have lost that sight. we've got 17,000 soldiers still in afghanistan. pull them all, leave 1,000 special forces type people and kill terrorists and break up a terrorist network. the taliban has taken 45% of that country back. that war should be done. but we still need to fight the war on terror and we can do that with a much smaller force. they don't have to be living in afghanistan but to me, there's no more argument about afghanistan or iraq. we've got to go back to the basics of killing terrorists in the war on terror. connell: colonel hunt, always good to see you. thank you for coming on. really appreciate it. all right. in a moment, we talk about an economic slowdown. forget about that for a moment. big money going in to fast cars and who better to have a live look than jeff flock. jeff? reporter: not only fast cars, but good investments. you know, this is a corvette.
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connell: we will get jeff flock's cool story out there as car collectors are eyeing up luxury cars. that may be some sort of proof that high-end buyers are still moving despite fears of an economic slowdown. looks like fun stuff in pebble beach. what do you see? reporter: sometimes this is insulated, i think. i tell you, we are in the gooding & company tent. this is one of five auctions to be held at the concord in pebble beach. it's like eye candy. i don't know what to say. david gooding is the president and founder of gooding & company. money still is coming into this. >> oh, yeah, definitely.
we have more registered bidders this weekend than we have ever had before at our auction. this is our 16th year here. reporter: incredible. everything, here is a ferrari and this is a 2014, over $2 million this will go at auction. the corvette is maybe $750,000 but somebody bought it in 1963 for five grand. >> yeah, well, that can show you how great an investment these cars can be. that's a very very special corvette. reporter: i was going to say. that's why the dollars are so high. this is open to a range of not only investors, but collectors, because hey, andy, come on over, if you can, for a second. want to show you the cadillacs. i used to say this is the cadillac of that. cadillacs, not so much anymore. these are 1949 vintage cadillacs. you can get into these for a hundred grand. >> yeah. yeah. our estimate on all of them is under $100,000 but yeah, there's a trio of three of them and they are all from 1949.
reporter: so a range of investment. >> the coupe deville we estimate at 50 to 80, and these are 80 to 110 or 120. reporter: i can almost afford, if we didn't live in a house anymore, i can almost afford one of those. hey, andy, before we get away, david, can you come up this way? i want to talk about the real high dollars. follow me up here. i know we are running out of time. i want to show you the car that will probably go for the most at auction. that is this ferrari. 1958, the year of my birth. can you make it all the way? no. anyway, we will stay here. i think andy can get a shot of it. that is how many? connell: andy pulled the wire out there. poor andy. andy is pulling the camera, next thing you know. that's a good-looking ferrari. >> maybe andy went in the
ferrari. connell: yeah. andy said forget it, i'm going to take the car. we will come back with the panel. we got a bunch of other stuff to talk about. among the items out there, the internet is going crazy over this. president trump wants to buy greenland, right. we will talk about that and some other stories out there in the market as well. we are up 285. hope jeff and andy are okay. we'll be right back. ♪ ♪ ♪ introducing the all-new chevy silverado. with fifty industry-firsts. it's the strongest, most advanced silverado ever.
connell: mortgage rates are at multi-year lows. we have been talking about rates in general this week. 3.6 on your 30-year fixed rate mortgage. how about younger people now that are saddled with different types of debt, mostly student debt? can they even take advantage of the cheaper mortgages? one of the topics we are back here in the next few minutes with our panel. dan schafer here today along
with jeanne and dan. thanks, guys. good hour, talking about all these issues. if you are a young person, dan, presumably you would in many cases have a lot of debt and you wonder whether they can keep borrowing. what do you think of this issue? >> i think again, it's one of the big problems the markets are telling us. these young people today are not just saddled with the college debt, but consumer debt and the fact that this health care program is awful. i remember mine in 2010 and now you have a higher premium, higher coinsurance, higher deductibl deductibles. they are still paying a lot of it out of pocket. connell: especially people in their 20s for the first time having to deal with that. >> not only that, they saw what happened in 2007, '08, '09 and '10 to their parents. they're like wait a minute, i'm not going to buy a house and be stuck with something at high prices that could decline dramatically over the years, and they want to be more downtown, more where -- they don't have cars so they want to be near
public transportation. i know in my town, demand for real estate is high downtown. whereas the homes up country, they can't sell. big issue. connell: you're just not relating to middle america with greenwich issues. >> bottom line is when you are talking about a single family home, for example, for a millenial, it's just not that great of an investment. think about it. because if you can't afford to buy in a place like new york city, you are buying somewhere else, how much appreciation are you really going to get from that investment? meantime you are paying real estate taxes, paying your mortgage interest down and all those other costs, it literally becomes a money pit. connell: you are better off renting? >> better off renting or what i tell young people, take a look at buying something like a two-family house, where you can get some rental income to offset those costs. connell: okay. >> i think that's really the best way to go if you want to buy a home when you are a young person. connell: interesting. because people are affected, dan brought this up a little bit, by
their experiences and i think that '08 really is something that affects a lot of people's mindsets in terms of whether they are willing to take on debt or whether they are willing, whatever it is, especially you know, even if they are in middle school, it's an event that people remember because it was so shocking to many people's families. >> so devastating to so many families. i spend my life working with young people and they carry the largest debt in the country. so the students coming in as freshmen this year, 20 million students going to college in a few weeks or right now, they will leave with debt ranging from $100,000 to $250,000 on top of what dan mentioned, the consumer debt. then we right here are in a very expensive market, but markets are expensive across the country. they are getting entry level jobs at best when they leave college. you can't expect these young people to make it like that. connell: you have an argument when someone says to you why is it worth it to go to any school? you are paying all this money
and that's become a legitimate issue. >> it's become a legitimate issue. the data shows that you are able to make more money over your lifetime with a college degree still than without, but the cost is absolutely a reason and we will see that the democrats are talking both about the cost of college and health care, and republicans have to get in on that as well because if young people start voting, if in larger numbers, they can change. the millenials are the largest voting bloc in the country. connell: i will make one of the greatest transitions of all time. forget buying a house. how about buying a country? there's a report out, i don't know whether or not it's true, but there's a report out president trump has talked to his aides, said he would be interested in just buying greenland. people looked at it, i guess it came out in the "journal" last night, what is this, but turns out if we did try this, all these politicians have come out because greenland is affiliated with denmark, oh, it's not for sale, but if we did try this, apparently it wouldn't be the first time we tried to buy this country. this was an offer back in the '40s.
>> yeah. this is not the first time. everything has a price. everything is for sale. like we talked earlier, the virgin islands were purchased. connell: the virgin islands were purchased apparently 1917 for $25 million. let me look that up to make sure. that's what it was. >> in the early part of our country's awakening, we bought from france, through the louisiana purchase. connell: that worked out. >> and alaska. that was a great deal. from russia. >> anything is possible in this world. strategically, greenland could be an opportunity. again, i don't think it's going to happen. i don't know if this story's true. could be the new trumpland instead of greenland. connell: you think he would put his name on. >> and dan will buy a hotel there. connell: dan wants to hunker down somewhere. he thinks the world's going to end. this could be your place. your canned goods. >> the world is getting warmer so it's not as cold there anymore. connell: another angle. did you just laugh at this when you saw it?
>> well, i laughed at first, then i tried to dive a little deeper and say is this really a possibility. let's face it, donald trump can't just go out and buy a country. but the reality of it is, could you really get congress on board if there was a price on the table and you know, say let's buy a country, could you really get everybody on board to do this? connell: if neil was here he would bring up the debt and deficit issue. >> it's not a big deal. connell: depending how much we get it. the virgin islands, denmark sold the danish west indies time to the united states in 1917 and the price was $25 million. i don't know what your best offer is on greenland. i would assume it will be a lot more than that. >> everything is negotiable. the basis is greenland is costing denmark money. the point is if we can relieve them of that -- connell: before we leave, what
costs more, the brooklyn nets or greenland, do you think? >> the brooklyn nets. the nets. connell: the alibaba guy is buying it. a russian billionaire owned the brooklyn nets basketball team. the price tag is $2.35 billion. highest ever for a sports franchise. these sports franchises, basically because of the tv deals -- >> better than countries. connell: they go up. look what jerry jones paid for the cowboys years ago, worth $5 billion now. or steinbrenner for the yankees. anyway, thank you, guys. great stuff. thanks for joining us. great hour. we continue to watch these markets. we are in rally mode on a friday. looks like we will end it on an up note. we will talk more about it. up nearly 300 points on the dow jones industrial average. we'll be right back.
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on surrounding trade, but stock like a lot of other stocks doing pretty well. 4:00, melissa joins me for "after the bell" with steve forbes. we have a bounce-back rally, charles payne, over to you. charles: deer best day in seven months. no one would have thought that. it could be a consequential session. we'll see you later today. i'm charles payne this is making money. stocks are trading higher after a real wild ride on wall street. try saying that three times fast. there could be a truce coming. if so i think the market takes off. we'll ask our guests what they're buying. we'll go live to hong kong as protesters holding a massive, power to the people rally, as chinese police are scene conducting drills in riot gear over the border in shenzhen.