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tv   Your World With Neil Cavuto  FOX News  January 20, 2016 1:00pm-2:01pm PST

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and the hostages were finally headed home. 35 years ago today. well, of this day the markets are the very big story. and when news breaks out in the markets, we turn to this man. >> thank you very much. as you've been reporting, it could have been a lot worse. i know you're looking at a number like that and saying my god, 246 points, we're just drip, drip, dripping away. and we are. but that's the good news on a day we had been down north of 560 points. and we were staring in the face of a potential bear market. that's when the dow slides or any market slides 20% from its highs. we're well into correction territory, down 12%. these are hardly numbers to brag about but like i say they're editor than they could have been. a big plunge in oil. the reason, look at nap we've not seen that in the better part of 13 years. now to gerri willis with what's going on. >> a big turnaround late in the
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day. then of course we turned again to the negative. but let me tell you, when i sat down to report this story earlier today there were 30 dow stocks and all of them were in the red. every single one of them. now we've seen a turnaround. take a look at the dow now, down 247. it had been down as much as 565 points. i don't know when i would have been happy to say 247 down is good, but today is the day after what we've seen in the markets. of course energy leading the way, as we know. that sector has been down as much as 4.7% and we continue to watch it closely as oil prices continue their lows. one stock in focus today, ibm, has all day long been a poor performer. that company has announced their 15th straight quarter of year over year revenue declines. they did that last night. that stock still paying the price. financials also down today. taking it on the chin. look at that. all of them suffering. as we continue to see worries, concerns about the pace of economic growth as we go forward. that's been the steady drumbeat.
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the questions about traders. we're also seeing technology up. you look at some of these stocks, apple, cisco. these are companies that have international audiences for their products. they're selling all over the world. so if there's concerns about the economy, those companies are concerned and worried. neil, back to you. >>geri, thank you very much. we should point out as well we make a big deal bear market correction. suffice it to say we have not gone beyond corrections in the five times or so we've punctuated them over the course of this now, what, eight-year bull market, seven-year bull market. a lot of folks say that we're going to follow the likes of china and japan. they're now in bear market territory. and they say we'll look at the components within those averages. they are well into bear market territory themselves even if the averages are not. so what happens here? we go to market watcher scott martin and gary b. smith. gary, what do you think? >> well, i think we go down from here. i think that gerri pretty much summed it up, and i think her
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key point there was the rest of the world is kind of in economic dismay. i don't see how you can grow, even maintain 3% growth, which by the way the fed doesn't even think we can maintain now. if china is pulling back. they have their slowest growth in what, the last nine years or so. i mean, you look at that, you look at metrics like what goldman sachs is forecasting for s&p earnings, minus 7% growth. you look at retail spending. i think all the signs there are for a bear market. >> you know, scott, you've got to wonder at our worst levels today the dow had lost 2,000 points on this still relatively young year. we were staring at a bear market type of retreat. we pulled back. but only in this kind of market can we say a 250-point loss is a relief. what do you make of it? >> only in this kind of market, neil, can you go out for lunch and come back and see 500 points back the other way. and i like to use what i call a
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technical indicator, i guess, or maybe an impression indicator, which is how many people do you walk around seeing throwing up in the street so to speak and getting really sick about that 2,000-point number? and frankly today was one of those days. not to say the market's going to go up the rest of the year or go up tomorrow, but the fact is bottoms are put in when you have days like this. when you sit there at home and just can't take it anymore. and so you have to look for days like this as ways to be constructive. ways to look around and see that other things are working like gold, like the u.s. dollar, like high-quality bonds, like even those of our u.s. treasury department, believe it or not. that stuff that you should have in your portfolio if this volatility is bothersome. >> but i always look at this kind of stuff, gary b., and you have a lot of average folks out with their investments and guide them, especially when they get nervous. a lot of folks are seeing this thing, you know, they even tell me, neil, i'm not invested in markets but i sure as heck don't want to be. and a lot of them for capital preservation, i don't want to lose any money, i don't care if i make a lot of money-i don't
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want to lose a lot of money, which could explain why bonds and treasuries are such a draw, even if you don't draw much money off of them. is that the new posture of investor now? >> yeah. i think there's still a lot of people out there who are scared from 2008. i started late '80s trading. i've kind of been -- >> was that the 1980s? >> it was me, wyatt earp, doc holiday. >> i wonder. >> i think if you're the average investor out there you look at your portfolio and go do i like what's in there? do i use gm? do i use procter & gamble every day? you say yeah, i do. then you close it up and you just -- you do nothing at this point. >> do we need china to do something? there was some regret early on when we started this that china
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hadn't done more to goose their markets and i'm thinking to myself it's a good thing they didn't. they just stopped. put everything down. but these are markets that when they have their tantrums, expect that kind of relief. >> which is a scary thought. that's a scary i guess conditioned response. and i'll tell you what. to your question, neil, i would tell china don't do anything. get out of the way. chinese government, people's bank of china, stay out of it. let the market do what they do, let sellers do what they do. that's going to make the markets a lot more efficient, a lot more trusted. i think the getting out of the way, has been tough, but we need to get out of it. >> thank you very much, gentlemen. scott and gary. now to that oil plunge. another big factor in all of this because oil has been slip-sliding away. these are levels that defy the imagination. that is a big reason why you're seeing those lower gas prices at the pump. but it comes with mixed blessings as trader scott will
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no doubt remind us. good to have you back. what do you make of what's going on with oil? and how low is low? >> it's already bad enough as it is as $27, $28 a barrel and everybody wants to call a bottom. it doesn't matter. 27's bad, 22's bad, 18's bad. they're all really bad. but at the end of the day when we have oil being downgraded, we have the world bank telling us the world gdp is going lower, we've got our atlanta fed revising our fourth quarter gdp lower, what's happening in china and their bad gdp numbers over there, we already have an oversupply. we're going to need the demand side to pick up. but when we're continually lowering gdps across the world that's lowering demand. >> hasn't that been a factor for a while? i'm just wondering if the market woke up to that reality, that it's not exactly within been a case of economies around the world, our own included, firing on all cylinders. we're just the tallest midget in the room because we're at least growing. so i'm wondering what prompted all of this. >> well, what prompted all of this is we have seen china
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weaken as of late number one but number two i would say the ill-advised rate hike in december when we raised rates on the back of putting more people back to service sector sxwrobz losing manufacturing jobs rather than taking a look at inflation. and we don't have any inflation because of what's happening with oil. so why would you raise rates into the teeth of a recession when ultimately at the end of the day the world's not doing well, we need to spur on demand, we don't spur on demand by raising interest rates. so that's another problem. and the strong dollar really is the umbrella over everything. and that will ultimately be the problem of 2016. >> well, you've been pretty good on a lot of these twists and turns. you and i were chatting earlier today on fox business, which scott you can tell your friends if they don't get they should demand. but enough about us. the one thing i thought was intriguing was this sense of orderly panic for want of a better term. nothing like i've got a feel of during the 1987 stock market rout. nothing like we got during the meltdown. i'm sure there are people panicking. i don't dismiss that.
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but i get back to my line then, it's an orderly panic. what do you make of that? >> it is an orderly panic. and like i said, i think earlier, we talked about this today, the average joe on the street had a problem. he couldn't believe we were at all-time record highs in the stock market. but his own economic situation at home was on maybe all-time record lows. those two things didn't jibe. the reason why it's orderly is bays think a lot of people expected this. however, there's going to come a point where it goes beyond expectations, and we've already moved from a mental idea of buy the dips. this year is sell the rallies. today might be one of those chances you get to sell something that bounced back 300. but at the end of the day a lot of folks were thinking you can't have stocks with all-time highs and my own economic situation at all-time lows. something's got to give. >> yeah. they usually align at some point. scott, always a pleasure, my friend. thank you. >> thank you. >> all right. scott shellady. stocks are in this panic year. we're in the eighth year of a two-term president's administration where things are
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slipping out of bed here. we had that same experience with george bush. in a way you think about it, we had in the last year of bill clinton when the internet boom went bust and then we snuck into a recession. what's going to happen now in the remaining months of this fellow's administration? chris christie on all of that and the fallout and frank luntz on who's gaining and losing in the political fallout. ♪
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look at the good side. it could have been worse. 249-point hit to the dow could have been worse. could have been more than double that, which it was. but it wasn't. and in the end, whether we came back or not, john mccain saying earlier today he holds the president responsible for this market plunge. he thinks the american people will as well. that if it occurs under his watch, good or bad, the president either takes a bow or, well, takes the hit. and that was of course the same john mccain who was looking back in october 2008 when he suspe suspended his campaign amid all the market shocks then. many say that doomed his presidential bid because the whole world, financial and otherwise, was going kablooey. political fallout this time around and by the way i'm not saying it's going to be this time around, but if it were, what would be the fallout? pollster frank luntz, one of the best reads of this sort of stuff i know. frank, what do you think? >> well, it's certainly going to
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matter in the next two weeks because we're right up to iowa and new hampshire and the candidates are going to have to demonstrate that they have not just a command of the economy for today but they understand the concern and anxiety that the average shareholder has. neil, more than half of americans own shares. that means more than half of americans have seen their retirement savings drop by more than 10%. and that's the number that i always look for. anything under 10% is not relevant to the average american because the number's too small. once you cross the 10% drop, then they truly start to pay attention. if it gets to 15%, then people may actually start to change their votes. right now there are two candidates who benefit. on the republican side i do think donald trump benefits because i've seen all the polling. a plurality of americans think that he understands the economy better than any of the other republican candidates. he certainly can talk about the role that china has played in this since it has been instrumental. and on the democratic side hillary clinton actually benefits because she's the person who can say look, i've
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had the experience, i've done it as a u.s. senator, secretary of state. she's going to bear more of the responsibility in the long term. but in the short term with anxiety at a new high she is the one who would benefit from the market coming apart. >> i just wonder for the incumbent party to hold on to the white house it's an uphill climb, right? whether she's up to that task or not. the fact of the matter is if the world seems to be unraveling or a bull market, which just gets old, like old bull markets do. its recovery, 74, 75 months old. is over. would be the natural weight of recovery. then it's exceeded that. then she's in trouble anyway, isn't she? >> you used the word recovery. the average american doesn't see a recovery. the average american is still further behind today than they were in 2008. the average american doesn't have the retirement savings, doesn't have a projection of having more money in the future. >> i understand that, frank. but wouldn't that have materialized in polls where in one-on-one contests she's not getting blown out. at least against many she leads. i guess what i'm asking is
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unless this really accelerates democrats are going to come back and say, well, bad as things are now, they even said as much yesterday, we are up appreciably from where we were when we took office. >> exactly. and she will not be held accountable. also, remember, this is still nine months away. that the economic collapse happened in late september six weeks before the election. we are nine months. that is a lifetime. so the markets are going to go up and down between now and then. there's going to be a foreign policy crisis. there's going to be an economic crisis between now and then. you can't make that judgment. what you have to focus on is the impact that it has on iowa, which is small businesses. new hampshire, which is a little bit more corporate, and south carolina, which really is a wild card that we don't really know. but in the end -- and i'm going to make this projection public. i do think in the end bernie sanders does win in iowa and new hampshire and the reason why is that democrats believe that of all these ups and downs it's economic insecurity and income
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inequality that matters most. the very thing that would defeat the democrats in november, which is a bernie sanders candidacy, is going to help him in those two early states. >> i know markets don't have quite the pull they used to or as many individuals in the past are participating. but they do see these events. they do watch shows like this. they do catch up with their friends, see how they're doing. do you think that casts a paul on democrats beyond what's happening in markets or do they step back and say, well, you know, i can remember republicans in a meltdown, a pox on both their houses? is it a jump ball? >> in this case the key voters are the independents. and the independents cannot participate in iowa. they can participate in new hampshire. and everyone can participate in south carolina. and independents will look at the democrats and say you know what? we went through the same thing with the republicans. we threw them out. i think it hurts the democratic party in the end. but let's focus on those swing voters. because in the end they determine who gets the majority. >> thank you, my friend.
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frank luntz. we're showing a lot of down stocks. i do want to remind you today that interest rates slipped. people were putting their money in bonds, treasury notes, that sort of thing. and the more money you put in bonds the lower the interest rate gets. for a while today i think it closed today for a ten-year note under 2%. again, if you're refinancing a mortgage or trying to take out one, your ship has come in. like i said before on fox business, that could be a very healthy development in and of itself. because your ship has come in. and i'm not chipping in. i'm not. more after this. ♪ (cell phone rings) where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it's personal this time... if you're a mom, you call at the worst time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do.
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all right. well, the senate rejecting a bill or at least approving by a wide margin, breaking through a
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filibuster, to tighten refugee restrictions. this idea we wanted to make sure anyone we're accepting into this country from syria was adequately screened. mike emmanuel now from capitol hill. i don't know where this goes now but you tell me. >> well, neil, the vote was 55-43. it needed 60 votes to proceed. republicans argue this bill made sense to make sure the right screening procedures are in place. >> it apparently is the policy of this administration to do nothing about that. and that's wrong. we need to i think regain the public's confidence in our immigration system, that we mean what we say what we mean when it comes to our immigration law. >> democrats argued refugees from syria and iraq are not our enemies, isis is our enemy. republicans countered by saying boosting confidence in our nation's vetting process is critical for our citizens just as it is critical for every refugee that needs our help. democrats seem to want to bring 2016 presidential politics to the senate floor. they pushed for votes on amendments on donald trump's
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call for banning muslims from entering the country. the senate's top democrat sounds preoccupied about donald trump. >> this bill is just another step in the absolute wrong direction. the direction of don trump. democrats are committed to opposing the hateful views of trump and his republican enablers. >> i should note the three senate republicans running for president, cruz, rubio, and paul, all voted in favor but it was not enough. neil? >> thank you very much, mike. herman cain joining me right now. out with a great new book "the right problems: what the president, congress, and every candidate should be working on." on this problem what did they do in. >> the democrats continue to try to make this into hate, and it's not. they just said they wanted to kill the bill. they don't give a valid reason as to why. this is pandering, pure and simple. and every time harry reid stands up on the floor or he stands up
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and says trump and hate, that is just deception to the american people. that's all it is. >> do you think the republicans, though, are adequately expressing that? a couple of dates, some are very good at this. others not so much. >> the republicans need to do a better job of expressing what's in that bill that makes it good. we didn't hear anything of that in emanuel's debate. we don't ever hear any of that. the republicans say we want to tighten it up. that's all it is. we don't know what. >> but harry reid says republicans are anti- not only illegal immigrant, they're ant yi legal immigrant. >> because that's the way harry reid and the democrats -- >> what do they do? how do they explain it? >> they want to say specifically we want to add this, specifically we want to add this. because protecting the security of the united states of america is not hatred. it's just being practical. and the democrats know that a lot of people aren't hearing the right message. >> as a successful businessman
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but you were a presidential candidate, you're looking at these markets. do you think everything is going to shake out? >> i predicted at the end of last year that we were going to see a recession this year for the following reasons. number one, i believe that the administration has been overly optimistic about what the gdp is going to be. they were predicting there was going to be a 2.1% gdp and some change. they're already starting to walk it back. it's going to be lower. secondly, they didn't anticipate the volatility of the market because of china and particularly oil. i believe that the abundance of oil is one of the big drivers in the volatility we're seeing in the market. so i happen to believe it is heading the right way because the numbers they put out every week about unemployment are phony. the numbers they put out every month about unemployment are phony. and they're not counting and they're deceiving people. >> well, they're the same number, the same data, but they accentuate -- >> same numbers and the same calculations. so it's to be expected. >> let me ask you about who
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addresses that. a lot of people say it was proven in the latest debate. donald trump says, well, the way we deal with china is proof positive we don't have our act together, wee always on defense. i'm paraphrasing here. but he was open to slapping tariffs on them. but that our posture should be offense, not defense. >> start with replacing the tax code. and this little book i've just published called "the right problems." >> it's very effective when you do that. >> i talked about that -- >> it's not enough that we show a full screen of your book. >> no, no. but start with the biggest problem they all ought to be talking about. you don't hear this. trump was the first one to declare what his tax code replacement would be. and then in the follow-up debate they want to put it out there. >> who has the best tax code to you? >> i think that at this particular point ted cruz has the best because of the flat tax with some variations. i happen to think donald trump has a good one. i'd rank it a 7 out of 10 with 10 being the pure flat tax.
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and i happen to think what ben carson put on the table is also a good tax code. marco rubio still talks about tax reform, and i keep trying o' -- >> but he still leaves the top tax rate at -- >> that's right. that's why i've been trying to get the message to him, senator rubio, talk replacement -- >> you want to hold up your book again? >> no. >> it's upside down. just kidding. i got you. herman cain, thank you very much, my friend. we have chris christie weighing in on some of the things that herman pointed out, and we also have a preview of what the president's final year in office -- seven years ago today he came into office. we've got one year to go. and just in case you think, well, these executive orders are going to go away now the supreme court's taking some scrutiny on at least one of them, think again. your path to retirement... may not always be clear. but at t. rowe price, we can help guide your retirement savings. for over 75 years, investors have relied on our disciplined approach to find long term value. so wherever your retirement journey takes you, we can help you reach your goals.
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john kasich just said my opponents are like satan, i am the prince of light and hope. i don't think he was talking about chris christie. but christie is looking like a hopeful pick for a lot of folks in both states. after this.
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all right. attorney general loretta lynch on capitol hill today. the president of course talking about the need to get guns under control. so executive orders will still be the rule for the last year of the president's office. he has one year to go today. greta van zest ren anchor of "on the record" on how much we can expect. even with i think greta catching you with the supreme court saying it's going to look into this whole immigration move on his part. i don't think he's dialing the executive action thing down, is he? >> i don't think he is.
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and the attorney general of the united states is merely carrying his water on capitol hill. just think about it, neil. everybody wants the violence to end. no one wants to see another death on our streets. but we have more than 300 million guns already in this country, more people -- we have more guns than people. so why putting these restrictions on the president thinks is somehow going to be nb effective means to stop the violence i don't know. but he's going to use executive orders. he has the authority to use executive orders. whether this one's constitutional or not will be tested in the courts. he has not used executive orders incidentally as much as much as? other presidents before him, including other republican presidents. but for some reason he thinks putting more restrictions on guns, even though we have over 300 million on the streets -- and neil, i practiced criminal defense work in d.c. when we had the toughest gun controls ever in this nation at the time and my clients could always get guns. it didn't matter. >> so on this executive order whether it's this -- i'm not a
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lawyer. you are. but i see from this he's going to keep doing it and let the courts sort it out. maybe long after he's out of office, right? >> oh, it will be sorted out long after he's out of office. and right now there's a hint that maybe the supreme court is questioning how much authority he has to do things he's doing. we've get got yesterday the immigration case you mentioned in the supreme court. they want briefed on whether he's essentially abrogated his responsibility to enforce immigration laws, which was sort of weird that the supreme court says yes, we'll take your case, which was a win for the president since he lost down below. they said we'll take your case. but while you're at it, we want to know about this. and that was an unusual directive for the supreme court, answer this question. we'll find out how he answers this. the other side will respond and they'll decide by the end of june which will fall right in the midst of the convention. >> you mentioned george bush. and you're right. he did have more orders per se. but the argument i hear from very smart lawyers like yourself is that the president's have been more sweeping. that barack obama's have been more sweeping in their nature.
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is that true? >> that might be true. but look, he's trying trying to solve a problem by putting more restrictions on people buying guns. but the fact is that the guns are already out there. so he's really not meeting what's the real problem. there are so many other facets that go into this. but another restriction making someone go through another hoop. if that would stop the violence in the schools or on the streets i'd be all for it. but the fact that we have over 300 million guns out there, it's so easy to buy them on the black market. are we really sort of spinning our wheels going in the wrong direction of trying to do this? and he certainly is annoying people who want to exercise their second amendment rights and have their guns. >> thank you very much, greta. keep up on this legal thing. you're getting places. greta van susteren -- >> i'm learning. >> "on the record" with greta van susteren. up next chris christie. talk about a guy who knows the law inside and out. former cop, attorney.
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of course governor of new jersey. and now a presidential candidate who is percolating oddly enough in two states, not just new hampshire. we'll explore that after this. you're late for work.
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see car insurance in a whole new light. liberty mutual insurance. big sell-off on wall street today. a lot of folks worry that it could be 2008 all over again. we remember that election year very well when the market fell out of bed and what looked like a potentially winnable election for john mccain just fell away, period. way early in the year but i wanted to get into this a little bit with chris christie, the presidential candidate. the governor of my fine state of new jersey. governor, good to have you. >> good to be here, neil. thanks for having me. >> what do you make of what's been happening on wall street? i know you probably don't follow it tick for tick, movement by movement. but a lot of folks are saying it has that meltdown feel and they're worried we could be staring at something pretty bad. what about you? >> well, neil, i think the problem is that we haven't had the kind of economic growth to underpin the growth we've had in
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the stock market over time. so what we need is a new president who understands that lower taxes and lower regulation will help to bring greater economic growth to our country, underpin those corporate earnings and a little bit more and help the folks on main street. i'm not ready to declare it an absolute emergency yet, but i do think this has been coming for a while, which is why i've been arguing against what the federal reserve's been doing and others because if we do have another crisis there's very few tools they have left in the toolbox. >> you're right about that. one of the things that has come up, governor, as the markets have been sliding away is how disproportionately banking stocks have done. i don't want to get too nerdy here. i'll save that for fox business. which if you don't get, governor, you should demand. one of the things that's come up is look, if they're on the ropes again, we're going to have to rescue them. we're not going to let a bank of america or citigroup go. would you if you were president faced with that position -- what would you do? >> neil, i've got to tell you
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the truth, i think they've had their one rescue. they should have learned their lessons from what happened in 2008. and as president i would not be looking to rescue these banks. there's got to be some penalties involved here. i understand these are difficult decisions. but the fact is we've gone through this once before. it cost the american people hundreds of billions of dollars for the mistakes made by the banks, by fannie mae and freddie mac. and you know, we can't be doing that. i know there are some candidates in this race who believe that we should, but i'm not one of them. >> reason why they say we should is that it would boomerang on you, sir, that all of a sudden you're telling a lot of depositors who might get federal insurance for whatever deposit limits are in effect, but all their investments would go kablooey. >> well, listen, you know, neil, each has to be assessed at the time. but i don't think we should be signaling to the federal government that you can conduct yourself in any way you want and if there are no penalties for that conduct. we've gone through this once before.
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we've seen it happen once before. and i don't think we can let it happen again. >> you know, i was thinking of you knowing we were going to be chatting today, governor. i'm looking at a donald trump and sarah palin on the stump together. a lot of people surprised she passed over ted cruz. bottom line, the whole race is confusing. how do you break through that huddle? >> i think the way you break through that huddle is to be the person who shows the voters that you've been the one that has fought the real fights over the years. the fact is when you look at -- and you know this in new jersey. taking on the teachers unions to make sure we reform teacher tenure. taking on the unions in terms of their pensions and benefits. taking on the special interests in new jersey who wanted to ruin our economy to have a radical environmentalist policy. standing up and fighting those fights that needed to be fought. that's the kind of person we need in washington, d.c. not someone who just talks about it but someone who's actually
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done it, fought a democratic legislature and vetoed more tax increases now than any governor in american history according to americans for tax reform. and so the fact is those are the things we need to be doing and having a president do. the way i break through is to show people i've actually done it. you don't have to take a risk on me. i'm not a first term united states senator who's never run anything before. i'm not someone who's never been involved in government. i am someone who's been a chief prosecutor for seven years and a governor of a very difficult state to governor for six years. >> i look at poll numbers in new hampshire and they vary all over the map. you're polling pretty well. certainly up infrom where you were. but out of the blue comes john kasich who's been telling people my opponents are like satan, i am the prince of light and hope. of course he's just zinging here. but i noticed a pac sympathetic with him has an ad out referring to you -- it's not an ad, i should say, it's actually a direct mailing if i understand, governor. his budget is in balance. his credit rating is dropping. his economy is failing. it goes on to say chris christie, tough talk, weak record. that's from john kasich. what did you make of that?
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>> well, john -- that sounds a heck of a lot more like satan than the prince of light and hope. listen, i've known john for a long time, and i've been around when his colleagues talk about him. i've heard john called a lot of things. the prince of light and hope has never been one of them. and so the fact is john wants to hide. he wants to let the super pac who's running most of his campaign in new hampshire do all thinks dirty work, and he wants to come out and act like, you know, he's some angel. >> well, do you have a super pac? that's what super pacs do, right? >> i do. but if you look at what our super pac has done, it's been relentlessly positive for our record and our vision for america's future. and as john was getting no traction in new hampshire, he decided to go negative against me, against jeb bush, and others. that's his choice. >> but it must work, governor. >> the prince of light and hope -- >> i'm sorry, we can characterize it one way or the a. it must work because ever since donald trump went after ted cruz as to whether he's really a natural-born citizen or whether people get along with him, i think he said he's hated on capitol hill, he couldn't get
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deals done. you instead of taken a different tack of being the energizer bunny and working and working and working. i think in one piece i read, governor, you said of yourself, i'm like a fungus, i grow on people. george will said that must be working because in iowa as well your favorability number has shot up from 51% to 29%. or to 51% from 29%. similar-type gains in new hampshire. doesn't always translate into the poll support. but what do you make of that and what you can build on that? >> what it will translate into is votes, neil. if people like and you they believe new they're much more apt to be willing to vote for you. i'll tell what you we found out. we're knocking on thousands of doors in new hampshire. thousands and thousands every weekend. and we're finding that still close to 60% of the people who we encounter at these doors are saying they're undecided. so with a little less than three weeks to go new hampshire voters are still deciding. any of the polls, even the ones
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that i'm doing very well in, i don't take any solace in that. and that's why the energizer bunny's going to keep going. i'm just going to keep working. i'm here in new hampshire for the next six days. i'll take an afternoon off to pick up some clean clothes in mendham, new jersey. and then i'll head out to iowa for another six days. and from iowa directly back here for the last eight days of the campaign. so we're going to keep working hard, and i think you're going to see results in both iowa and new hampshire that reflect the fact that people really are starting to believe in this campaign and believe they need someone with experience sitting behind the desk in the oval office. >> mendham, new jersey. i've heard of that. we're practically neighbors. governor, let me ask you a little bit about something that's got attention. earlier this week you kind of zinged michelle obama on this whole school lunch thing saying at a campaign stop, i think you were in iowa, she wants to give her opinions, that's fine. but using the government to mandate her point of view on what people should be eating every day is none of her
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business. explain. >> well, listen, i just don't think that the first lady of the united states should be dictating what kids -- choices kids can make for eating at schools. i think those decisions are best made by parents. and let the parents decide what their children should be eating or not eating. this is the nanny state where government gets involved in make every one of these decisions. i don't think they should be involved in that. i think i should be able to decide along with mary pat what our children eat for lunch at school every day. if we don't like what the school's offering, we can send lunch in with them. but that should be our decision. i shouldn't have michelle obama deciding what patrick christie or bridget christie each for lunch at del barton or at the villa walsh academy. it should be decided by me and mary pat -- >> well, those are private schools too. those are private schools too. but let me ask you a little bit, at the same time this is going on you pocket veto which means you essentially never took it up a bill that would have made recess mandatory in new jersey elementary school. my kids want to know why you did that. >> because i think their
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teachers should be able to decide and their administrators should be able to decide whether or not they have recess in any particular day. another thing about that bill, neil, was that it mandated outdoor recess. well, you know, on a day like today in new jersey i don't know that we're going to want to have outdoor recess and the kids are going to want to have outdoor recess but the state government would mandate it. this is crazy government run amok. what are we doing? all the other problems we have to deal with, my legislature is worried about recess for kindergartners in fifth grade. part of my job as governor is to veto the stupid bills. that was a stupid bill and i vetoed it. >> let me know next time how you feel about that measure. talking about mary pat and how as a married couple also you handle disagreements. this was in the "new york times," at least they picked up on it. you go to some party with your wife, it invariably happens every married couple something happens at party. the great moment is when you get in the car and go -- you have it out. so by the time you're home it's all washed out. would you want to do that in front of a new jersey state
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trooper? so it happens if you seethe, you're staring at each other and you usually go into her closet, i guess you're referring to mary pat's closet, to fight it out. which begged the question, governor, whether you have ever had arguments in front of state troopers or staff members. >> no. i mean, we really try not to do that, neil. it's an incredible invasion of privacy when, you know, the state police who are doing their job to keep you safe are -- >> but they hear everything, right? they hear and watch everything you're doing, right? >> they do. and so that's why one of the deals mary pat and i made -- and the comment i made was about two things. first we made a deal with each other not to argue in front of our children. now, i grew up in a household where my parents argued with each other a lot in front of us. >> my parents had a different -- no, my parents' vow was we have to argue in front of our children. >> well, it seems like i had the same kind of parents you had, neil. and so mary pat and i made that
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judgment. that -- and then when you add the state police into the mix and staff around all the time, you need a little privacy every once in a while. because every married couple -- we'll be married 30 years in march. >> congratulations. >> but every married couple has arguments or disagreements. we go to the furthest point in the house wherefrom where the kids' bedrooms are. mary pat's closet. we need to have an argument, it stashts the starts there wins all the argum doesn't she? >> of course she does, because she's right. >> your thought on this race in new hampshire, more specifically, governor, one, two or three or you're out? >> we'll see who else is one or two or three or where we end up. i've got to do very well in new hampshire. i've invested in a lot of time and energy, so we're going to do well. i think we're going to be in those spots that you talked about and we're going to work very hard to make sure we get there i feel very good about where we are, neil. and being on your program to
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talk about it certainly makes things even better up here in new hampshire so thank you for that opportunity. >> thank you very much. we hope to have your wife on tomorrow to talk about this arguing thing. but until then, governor chris christie. we have a lot more.
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all right. who better than karl rove to engage the political fallout from a market that's been free-falling. the question is how long it will free fall. >> god if i know. well we're off to a bad start. it's been a long, as you know, a long market. long modest anemic upbeat market here in the last -- >> you could argue we're due, anyway. >> but you know i do think there's so much overhang on the economy. regulatory overhang. concern about taxes, concern about the election.
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the regulations, financial regulations that are in place. all of this is exacting a cost. and it's slowing down the economy and now we're more likely to be affected by things outside our borders, like the slowdown in china and the slowdown in europe. >> a lot of times we see presidents in their eighth year of office. it's problematic. those who have benefitted for bill clinton we know in retrospect, the economy was slowing in the recession, the internet boom and bust. what is it? >> well it's just a natural cycle of the economy, just happens to coincide sometimes with the final years that a president is in office. and you know, the ability of a president to affect things is much less in the eighth year than it is in any other year they're in office. the whole political system of congress is going someplace else. >> and it's hard for a party to get a third term. >> george bush senior got it?
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>> the only time in the modern era where the white house has been held for eight years by -- >> who is the beneficiary of a market panic -- who say i'm your prescription. >> generally the party it's whoever the nominee ends up being if they can make a convincing case that they know what they're going to do about it. you know, as i just finished writing a book about the 1896 election. we were in a great depression. the biggest until 1929. but the democratic nominee, despite the democrats have a presidency. he escaped responsibility for it. >> that's what this process is about. we'ring about to get our first sample of where the voters vote in iowa. but it's, we have a long way to go in this process. >> the book is a great read. you know it's a great read when even liberals are saying man, that's a great read. then they spit it out. i'm kidding.
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love the book and it is a great book it makes you think. you all know the guy who came after him. he gets a lot of press and praise. leave it to karl to say hello. a lot more on the political fallout on all of this from the markets, tomorrow.
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hi, i'm sarah palin. with kimberly guilfoyle, juan williams, eric bolling and she free-bases pixie stix, it's dana perino and "the five." it was an announcement so big every network led with it yup, sarah palin secret email server contained more highly classified info than previously thought. sorry did i say sarah palin? i meant hillary clinton. maybe if it were sara, everybody would have led with it dozens of emails contained classified information. ranging from confidential to top secret from quote special access programs. unquote, dana. in sum, hillary broke at least

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