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tv   Power Lunch  CNBC  December 5, 2018 1:00pm-3:00pm EST

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give rest, o christ, to your servant with your saints where sorrow and pain are no more, but a sign of life everlasting. >> you only are immortal, the creator and maker of mankind and we are mortal formed of the earth and to earth we shall be returned you are dust and to dust you
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shall return all of us go down to the dust, yet even at the grave, we make our song hallelujah, hallelujah, hallelujah >> sorrow and pain are no more >> in your hands, o merciful savior, we commend your servant george, acknowledge we humbly beseech you, a lamb of your own flock, a sinner of your own redeeming. receive george into the articles of your mercy and to the blessed rest of everlasting peace and into the glorious company of the saints in light. >> amen. >> now may the god of peace who
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brought again from the dead our lord jesus christ, great shepherd of the sheep, through the blood of the everlasting covenant, make you perfect to do his will, working in you that which is well pleasing in his sight, the blessing of god all mighty, the father, the son, and the holy spirit. beyond you and remain with you in this world in which we live this day and forever more. amen >> let us go forth in the name of christ. >> thanks be to god ♪
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you've been watching the funeral ceremony for the 44th president of the united states, george h.w. bush, at the washington national cathedral and kelly, what a celebration of his public service, his friendships, his family, his humor. >> oh -- >> and, of course, that remarkably personal moment of bush '43 recalling what he said the best father you could hope to have. >> you could tell the entire time he gave that eulogy he
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spoke confidently and rather somewhat quickly and you could tell the emotion that he was keeping inside all came out in that moment which, you know, we'll show everybody in case you missed it from earlier, but this was one of the those services you could feel so good about so many instructive points and great moments from the music, the eulogies, being able to laugh and just embrace what a life he led and who doesn't come away from watching this today and thinki need to try a littl harder, i can do a little better. >> that was a big part of the h homily keeping his legacy in your present life. as alan simpson said, humor is the universal solvent against the abrasive elements of life. we'll be hearing more about this, of course, as the remains of the president now head to joint base andrews, will depart en route to houston where he will be laid to rest in college station, texas, tomorrow
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afternoon. >> and another line, a great up with, hate corrodes the container it's in. john harwood outside the cathedral with more on what we've seen today, john >> kelly, i agree with both of you. it was a pitch-perfect sendoff for the 41st president of the united states. it kicked off at the beginning with the eulogy from jon meacham, the historian, who framed his remarks as an answer -- his entire speech was an answer to the question bush himself posed when he was weeping in the water at age 18, having been shot out of the sky as a naval aviator, why did i make it, why not my compatriots on the airplane with me? by the end, he said, that's why he was spared, because of the way he improved the lives of others, that he had a positive impact on the world, that he was
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a lion who led us as well as loved us and that's why he was spared it was a great moment. as you mentioned, alan simpson was funny, he talked about humble people in washington. he said you travel the road of humility in washington there isn't much traffic you had brian mulroney, the former prime minister of canada, about his close friendship with the president. he got choked up in describing the joy that president bush expressed in his life and the progress of his kids and grandchildren, and then the emotional crescendo as you mentioned which was george w. bush weeping as he recounted what a father that president george h.w. bush was not only george bush, but jim baker was weeping in the
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audience as you said, kelly, it was positive it was uplifting it was -- this is a moment when the country is riveted by political conflict and not feeling very good about the nature of that conflict and i think everyone, both in that church and watching around the country, wants to feel better, wants to feel good, and in this republican president who had so many close friends and colleagues who were democrats, there was something in his life for everyone to embrace and feel good about that's what avenue done today. >> to that point, john, let's bring in eamon javers. we were discussing how it's really the first presidential funeral in a social media age where things go viral, and clearly on social today the things that went viral were very much about body language between so-called political adversaries, particularly in the front row. >> absolutely, carl.
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you think of that moment when george w. bush reached across to michele obama, apparently handing her a mint as he had done which in a moment that went viral during the john mccain funeral. a call back to that moment and a friendly moment between the former first lady and the former in the i thought as i was watching this, the burden on george w. bush personally, here is someone who is deep in his own personal grief, now called to honor a father, to lead a family, to lead a city and really to send a message to the country that he once led about the proper way to grieve here and the values that he and his family have stood for. that is a lot for any one person to bear. you saw him bear it with dignity there and that emotional moment when he couldn't continue. i think as anyone who is a son or father or a member of a family, that resonates i think we can all just feel for this family and what they're going through and also the
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celebration of a life well lived at 94 years old, president george h.w. bush being driven away from the national cathedral. an astonishing moment there to watch the whole proceeding. >> there wasn't a dry around here it's a tv studio, you could have heard a pin drop after that moment 43 kind of laughing at himself as he sat down and acknowledging the emotion that he showed joining us retired air force general mash welsh, dean of the george bush school of public service and former aide to president george w. bush jane hampton cook is here with us in washington just to go back to you, so many moments, highs and lows, during the service an it's not over yet. the funeral is tomorrow and, of course, the reflections will continue, but what did you think about today? >> well, i think today just made me proud to be a citizen of a country that honors its leaders this way and awfully proud to represent an institution that
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the bush school is committed to maintaining his legacy of faithful service and all of us in texas are hurting for the family and wish we could shoulder a little bit of their burden >> jane, you know, you, of course, worked with george w. bush what do you think about the emotion he showed in that moment there? >> it washistoric. when john adams died, his john john quincy adams was president, but he didn't get to do the eulogy he was in washington, d.c. what we saw today was truly historic never happened before, for the son of a president, also a president, to eulogize his father and a president of the united states. i thought that was, you know -- president george w. bush used a quote from his father's inaugural address, that we aren't the sum of our possession, they don't measure our lives, and he went on to say we have to pass on what it means to be a loyal friend, a loving parent, and a citizen who leaves his home, his neighborhood, his town, better than he found it. that was what he said in his
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inaugural address in 1989 and how he lived his life. today we saw people honoring a citizen who left this nation better than he found it. >> some of those who gave the eulogies today talked about the planning of today, which has been in the works for a very long time. >> right. >> do you think the planning has changed or been massaged, given the kind of environment we're in now the last couple years? >> you know, probably not too much i think that the themes of loyalty, friendship, family, i think all of those were set and i think that one thing that president george h.w. bush really valued was civility i think, you know, having all of those former presidents sitting there, knowing that sometimes there was competition and adversarial nature, that was a dem straugs demonstration of what he lived out which was civility that was special about today. >> jane, it actually goes back to a moment of the past, which is watergate and you highlighted the fact that when he was leader
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of the republican party at the time, george h.w. bush was concerned that it would dissuade people from public service, including his own family and wrote about it as well. >> that's right. two weeks before he asked knicksen nixon to resign, he used the words your family loves you and i don't want you to be discouraged from public service. i want you to crank it back in at some point in your life he shared his honest thoughts about it all, but he wanted them to serve in some way at their own time what i love about this, he says public service, he didn't say i want you to be president or governor or mayor. it wasn't that pressure. it was broad they knew that their love -- his love for them was not dependent on what they achieved. it was there. >> earlier in the week we spoke with walker stapleton, second cousin to the president, now treasurer of colorado who said at one point his -- president
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the encouraged him to go into public service one day and then he said, that was a pretty heady message for a 6-year-old, which is how old i was at the time i generale, i'm curious, what degree does the school push the mission of public service and does today accentuate that >> well, the bush school of government and public service is the only college in the country that has public service in its title. 70% of our graduates go into public service and have since the school opened 21 years ago our students choose us as a graduate school because they want to serve. it's a pretty special place because his dna is in the school >> general, is there an evident now to shape public service in one mode or another? it's an old-fashioned concept. these days were often more concerned about the swamp of washington it doesn't have to be washington oriented, does it? >> not at all. in fact, about half of our students go on to public service
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in the community level, state, county, city governments some serve just in their families the idea of public service in president bush's view started at home and extended all the way to your nation. i think that's wonderful about the students we have here. some want to be a city manager of texas, some want to be president of the united states >> jane, what is it about the -- we are now seeing george w. and his wife back on the national stage and any thoughts to you? when we left them as the public in office, it was now 12 years ago almost so what are we seeing as they re-emerge today? >> i think we're seeing a family that wants to give a proper sendoff to their loved one and to someone who meant so much to so many people they didn't want this to be about politics there were no political jabs today. they wanted it to be honoring to their loved one who happened to
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be president of the united states >> john harwood, that's a good point. we talked to sara this morning who said that, you know, mccain's funeral was not that long ago, three or four months, and some said maybe it was too political, that today was not going to be anything nearly as political as that event. >> that's right. and george h.w. bush wouldn't have wanted that what you had was a celebration of the qualities that the 41st president had. people can listen to those qualities and draw their own contrasts with the current occupant in the white house but this is all in the positive. a president who served a cause greater than him service, cared about others, very much focused on not only public service and the issues that he was pursuing, but the human beings he was dealing with and the personal touch he applied to thousands of
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notes and kindnesses he showed people, all of those things they are not unique to george h.w. bush, he was quite an exemplar of those qualities people appreciated them then and now. >> here's the moment from the end of the eulogy where he couldn't quite keep his emotions in check any longer. >> we're going to miss you, your decency, sincerity and kind soul will stay with us forever. through our tears, let us know the blessings of knowing and loving you, a great and noble man, the best father a son or daughter could have, and in our grief by the smile knowing that dad is hugging robin and holding mom's hand again >> such a powerful moment there, robin being the daughter they lost at the age of 3 to
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leukemia, george's sister, and i don't know, jane, if you saw any moments like that from this man, george w. bush, in the past? >> you know, i do remember him getting emotional and i remember him talking about robin. i remember him talking about getting in the car when he was 6 years old and thinks he sees her in the car he's like -- his mom saying no, she's gone that loss impacted every member of that family i think it's just appropriate for them to, you know, have that resolution and i think that that's weighing on them as well. just -- i was attracted to their family when i was at texas a&m when the bush school opened. that's how i got into the bush world. i was planning the opening ceremony for the bush school and my husband said, you know, maybe we should go into government instead of education and off to austin and ended up working for governor george w. bush. george h.w. bush changed my life in a way i never expected.
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i'm here today because of him, living in this area. he gave so much to his country and yet his message was just so simple -- loyalty, civility, honor. he really believed that public service was noble and george washington was that way too. there's a lot in common between those two. they have the same name. they served 200 years apart exactly, number 1 and 41 but they both really valued civility and honor and those qualities that i think just make this president special >> it's hard not to think the line in "hamilton" we're going to teach them how to say good-bye, which is clearly what bush family has done today general, jane brings up loyalty and as we look at special mission 41 right there on one last trip, back to texas and that loyalty to texas, and the different flavor i guess you can
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say that we're going to see tomorrow versus the sort of institutions and traditions of d.c. today >> yea he's coming home tomorrow, carl. you will see in the funeral in houston that he's surrounded by friends and so is his family i guarantee you when he gets to college station, texas a&m university and to the bush school and library, that he'll be embraced. we can't wait to get him home. >> don't expect many dry eyes tomorrow as well. >> carl? >> john. >> i was struck as you and kelly showed that image of george w. bush being overcome with emotion at the end of his remarks by how human their relationship was george w. bush idolized his father, but he idolized him as a man, as a father, as a patriot, not necessarily as a politician. he fashioned himself more like
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ronald reagan than like his father as an ideological matter. he considered himself more of a movement conservative where george h.w. bush was more of a [ inaudible ] which led him to the bipartisan era he had. even though he served as the national leader of the republican party he wasn't an ideological guy, he was a practical guy. that underscores the depth of emotion that george w. bush was coming from. that was father to son it was very powerful to see that on the -- for the entire world to see. >> i thought you had another correction >> no. not at all >> you've been our fact checker today, john. >> i was curious, jane did you expect more mentions of ronald reagan today. we didn't really hear a lot. >> i didn't. i actually didn't think about it
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really you know, i look at ronald reagan and when i study him and when i've looked at his memoirs, you can see that political philosophy of less government, lower taxes, you're right, george w. bush adopted some of that, not so much from his father's style in that way, but when you look at george h.w. bush it's not what he was presen presenting, but he wanted to show you how he would lead reagan was about what i'm going to do, george h.w. bush was about how i'm going to do it. >> it's a good point and i wonder if this in a way is the bush family -- george h.w. bush certainly coming out from beneath the shadow of ronald reagan >> yeah. i think fundamentally he was a good and decent man, which made him good at every job he did and a great husband and father and great grandfather. i believe he was a remarkable
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patriot. most of all i think he was a spectacular role model that's who he was and how he will be remembered we've seen it in the coverage of everything for the last five days and we saw it again in the funeral service today. >> jane, generale, thank you so much for sharing your thoughts today on this important day. barbara franklin joins us this afternoon, long-time bush family friend, former u.s. commerce secretary under president george h.w. bush. thank you for your time. >> glad to see you >> i don't -- i'm not sure if you can hear me, but we were struck, at least on set today, by how much policy got woven into the eulogies, especially from the likes of the former canadian prime minister. >> barbara might still be mingling on her way out of the service. >> some of the cell phone connections might be troublesome today. i will pose the question to you,
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regarding the sper personinterp relationships when it comes to foreign affairs, mulroney had a couple good lines on that front. >> the bit about the head of state of iceland droning on while president h.w. bush was taking notes, really had been flattered by the fact that bush was taking notes during his remarks but he was taking notes during everyone's remarks. we haukds about the coalition they put together in the first gulf war he talked about transnational cooperation on issues like acid rain where the president pushed through the clean air act amendments that innovated and brought about cap and trade for acid rain and solved the problem. he talked about their negotiations on nafta which produced a lasting achievement for north america and for the economy of the united states,
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notwithstanding the rhetoric you hear about that as a damaging thing economically to the united states, it has had some negative impacts on some workers, no doubt about it, but as a whole, that has been positive for the economy of the united states and the evidence of that is that president trump was such a harsh critic of nafta has now negotiated a new deal with canada and mexico that substantially resembles the old one, updated and made more modern >> john, as you're talking, a reminder to our viewers to what you're looking at. this is joint base andrews we're awaiting the bush family's arrival. the guests will include leadership from the united states secret service, members of the personal detail, some members of points of light, the organization that encourages voluntarism, staff from the desert storm memorial and former white house and camp david staff. >> i was waiting for mulroney's
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comments to say it turns out the president had been writing a letter to someone, not that he had been actually taking such copious notes during the proceedings of that meeting, just another window into his personality. tillman is with us, the houston rockets owner and long-time family friend of the bush family always good to have you with us. what reflections can you share with us today? >> it was a wonderful service and to see all the presidents and i think george w. hit on his dad, you know, just perfect. he was a very loyal, loyal guy he made his friends his friends. i've always said this about both the bushes, they didn't do what the polls told them to do. they did what they thought was the right thing to do. when he said, you know, read my lips, no new taxes, but then the
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right thing to do for the country was to raise taxes, he did it it probably cost him his presidency george w. was the same way people in houston love these they were just two more people in houston you would see them everywhere in the last 25 years. they didn't act like i can't go to this or this. barbara would sit and workout and see george in my restaurants or other restaurants he had a pretty good secret service detail with him, but houston is really proud and we're looking forward to the service in houston tomorrow morning. >> tillman, we were discussing earlier their connection to all kinds of sports, going back to his early days, his captain at yale, obviously the rangers, but they're going to make a showing upon arrival tomorrow. >> right as a matter of fact, today when they land in houston, at 4:30,
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you know, he wanted, you know, representatives from all three of the major sports teams, the astros, the rockets and the texans, and you're going to see a good turnout at the joint base at 4:30 central, 5:30 eastern, which will be interesting. he loved his houston sports teams, and, you know, in the early years after he came back to houston, he was at them all the time and, of course, the last few years, you know, it isn't happen quite as often. >> tillman, i was wondering about that, upon seeing the teams will be greeting his body, that was something he specifically asked for >> it was specifically one thing, you know, that he ended up doing and it wasn't always about him, is they want presidents to plan their funeral, to get exactly what they want, and this is 100% something that he asked for and they had the timing of this thing down and it was a known
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fact -- i was told about this a month ago, that, you know, we're going to want the sports teams and when he arrives back i know a lot of teams and you will see a lot of greats from old greats from all the different teams welcome him when he gets back to houston this afternoon. >> we also understood there was a dinner last night where coach k. and other luminaries from the sports world were in attendance and there's probably a lot of qualities that he would draw from excellent leadership in the coaching side of things, or maybe he was just a passionate fan. i mean what do you think appealed so much to him about sports >> you know, i think, you know, what you just said is that coaching is a very strategic move for every game and every play and i think that h.w. was a very strategic person. i mean, you still got to look at his career an see from the house of representatives to the, you know, head of the cia to ambassador to china, head of the
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united nation to vice president to president, this gentleman was very calculated and even though he lost some early elections back in the '60s and '70s, persistence, persistence, is just like athletics where you have to stay on it to be good. i think that he loved meeting with coaches and loved meeting with players and meeting with the owners i think he definitely paralleled his life if he wouldn't have been a politician, he would have probably been a great basketball or football coach. >> tillman, i know you worked on the haiti fund, an effort between bill clinton and bush. i was struck today, everyone showing pictures of the colorful socks that the president used to wear one of them is a pair of socks consist clinton's picture on it, just speaks to the level of his ability to reach across the alleluia even after some bruising elections.
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>> absolutely. you know, it's amazing and what happened was when 43 was president, that's when he asked bill clinton and h.w. to raise money for the tsunami that hit indonesia. this just kind of speaks for him. he called me because he knew i had been friends with bill clinton and had gone back with the bushes for years, he said hey, tillman, will you go to the library with me in little rock so we can shoot this commercial today and have lunch with bill because i really don't know him. you have to understand, you know, republican and democrat, that's the enemy who beat you. >> we understand. >> and we go up there that day and bill was in a meeting for about 20 minutes so him and i walked around the library. the last person people expected to see was george hfrmgts w.
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bush walking around the library, meet my friend from houston with me, nobody could give a darn about me, but we had lunch and shot the commercial and bill sent back some barbecue from the favorite barbecue place to meet us at the plane and trinkets from us at the plane he got on the plane and he goes, gosh, i really like that guy and so we get back to houston and then the following week the two of them go to indonesia on air force one, one of the big planes i talked to him when he got back he just could not believe how nice bill was. that's truly where the friendship started the picture i believe y'all are showing right now was when the three of us raised money for hurricane ike that just devastated the galveston county area we raised a bunch of money for that together. that's on the beach in galveston, texas where that picture was taken. these two guys raised a lot of money for a lot of causes.
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bill clinton truly became one of his best friends you know, obama was in town last week staying at my hotel speaking at baker institute. i talked to obama and he was on his way to see president bush and give him a pair of socks i think he got his last pair of socks from president obama last week it was truly i think a week ago today, matter of fact, a week ago today that about this time i saw obama and he was on his way to see president bush and bring him some socks that's just a little insight. >> exactly the ice breaker between presidents clinton and george h.w. bush was when there was one bed on the plane and clinton said you take it, i'll sleep sitting up they were going back and forth about that it tells you about the two of them they did apparently become quite
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close. >> that's a true story 100%. bush said no, you're the last president and you beat my butt clinton said, no, you're the elder statesmen. but that is both of those guys, having known them both truly, truly, you know, it was almost like bush was shocked when i said, you know, president clinton loves the country and what he thinks about it. he doesn't have to have somebody whisper something in his ear, he knows it all it's really great that these two people put country ahead of everything and said we're going to have a great friendship >> yeah. no, i was going to say we really appreciate you calling and sharing your reflections and telling us a little bit more about what we'll see tomorrow in houston or even this afternoon when they arrive thank you so much. >> thank you, guys. >> the co-founder of carlisle
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group, you've been involved in politics here going back to the beginning of your own career what are you reflections on george h.w. bush today >> well, president bush was a very good friend of mine he affiliated as an advisor to my firm about 20 plus years ago. i travelled the world with him i realized relatively quickly why people liked him so much i had been working in the carter white house, so i hadn't spent a lot of time with president bush before but when he affiliated with our firm, i got to know him and jim baker much better. i realized that jim baker was an extraordinary individual and george h.w. bush was probably the nicest person i'd ever met in my entire life. he was not only an outstanding president, but such a gracious person, so kind. i developed this close relationship with him and really spent many years traveling with him in parts of the world. everywhere i went it would be kuwait or asia or the middle east, he was well-respected. i couldn't find anybody that
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didn't like him. i could see why. he was gracious, charming, funny, great sense of humor, and cared about other people more than he cared about himself. i just regret that he couldn't have seen this service, because he would have enjoyed it, no doubt. >> as you're talking, getting some pictures of the advanced team arriving at joint base andrews. we still await the bush family's arrival. to your point, it was the journal that said he was a gentleman growing cruder by the year dan quayle said he was as ideal as anyone in our lifetime. that was a theme that got repeat again and again today. i'll ask you a question that will be asked in the days to come, what's the half life of that message in washington does it survive? >> obviously we all hope the half life would be quite long. the half life of things like this probably isn't as long as we would like. we don't know.
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i would always say about him, i always wondered what it was like to meet someone like the founding fathers, what were these people like? they all had flaws, they all had human weaknesses we never met them. but i always thought that george h.w. bush would have been a perfect founding father. if we ever had another constitutional convention he would be the kind of person we would send to it he had so many good qualities. he cared about the people, he knew about the government. he wanted the government to be bipartisan he was the least partisan president i've ever met. while he had to be clearly a republican in many ways to get elected, as president he governed with a democratic congress and did quite a good job. imagining today how much legislation you can get if you're a president of one party and congress is controlled by another party. he got a lot done with a democratic house and senate. >> but is that -- that's to your point, is that enough to inspire a new generation of young
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politicians, or is the tide of hyperpartisanship just too much to swim against, at least right now? >> well, it's always the case that people think that what happened the last year or two or three will happen in the next one or two or three years. the world changes and we don't know what will happen. i do hope that things will change and will be more bipartisan very often when you go back and look at history, you see when congress and the white house are controlled by different parties you do actually have more bipartisan action. let's hope something more bipartisan will happen in the coming years i would say that one of my -- yes, go ahead. >> go ahead. >> one of my fondest memories with president bush was preparing for his 80th birthday party. he was going to jump out of a plane as you know. he wanted to practice. he invited me to go down to ft. bragg. in the end he had the courage to do it, i didn't do it. he had such a joy for life that
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i very rarely have seen anybody who enjoyed life as much as george h.w. bush his family, his athletic competitions he would have, his friendships around the world there was nothing like that. i really have never met anybody quite with all the qualities that he brought to the presidency and to friendship. >> i've got to say, i'm not sure i have the courage to go skydiving either if i was going with a former president, david, i might feel a little bit more comfortable. if something went wrong, people would take extra precautions if i'm with him, right? didn't that give you some comfort? >> well, he had more courage than i did, no doubt about that. he did a great job that day, when he did do it on his 80th birthday, gorbachev was there in texas and george h.w. bush wanted to go by himself but he had to do a tandem because of the secret service and so forth he was quite an individual i never imagined i could meet
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who will be as impressive a person in so many different respects and a friend who was writing letters all the time as i said the other day at a kennedy center event, i asked him to be a favor for me a week before he died he did it. he was obviously not in great shape. i asked him to write a letter about something and he did you know, i always will be grateful for my friendship with george h.w. bush >> before we let you go, as you think about his legacy from a policy standpoint, whether that is upholding various institutions in power structures within washington, obviously the budget deficit, taxes, china, what do you think rings loudest? at least in the world we're now living in. >> well, i think his legacy will always be relating to what happened in kuwait what he put together there is something that we haven't seen since, really. and that was quite a presidential series of actions that will stand the test of
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time i think overseeing the collapse of the cold war and the soviet union is also quite something that will be remembered for a long time. and the way he helped unite germany i think is quite important as well. his decision to increase taxes or allow it to be increased is a bipartisan action and a selfless action i think we could all learn from he realized probably he wouldn't get reelected if he agreed to increase taxes, but he thought it was the right thing for the country. he was not reelected in large part because of that. >> so we've talked about the courage of skydiving the courage of potentially ending your run at a second term how about the simple courage -- i read the anecdote, i think his secret service advisors and even his wife, we advise you to go. to heck of it, i'm going he was advanced in years at that point as well. we talk about courage and sometimes we've seen it with him especially during times of war
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and that sort of thing it applies day-to-day, doesn't it >> he had the courage to cry he had the courage to act in ways that were more human than presidents are expected to act he had the courage that a good human would do sometimes we don't expect our presidents to do the kind of things he was willing to do. before he was president, while he was president and after he was president, his post presidency was successful as well. >> today's guest list is testament to that fact here's the arrival of the bush family at joint base andrews one last thing, david, when we talk about legacy, you know, he was asked about this all the time one said i've banned the l word, meaning legacy let history sort out what you got right and what you got wrong.
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i assume you think history will treat him certainly more kindly than voters did in '92 >> well, as we know, some people who were not reelected or didn't have as much of a presidency as they might have preferred were treated much better in history for example, harry truman. i think george herbert walker bush will be in that category. in the four years he was president, what he accomplished is an enormous amount. you could say he accomplished as much in four years as some accomplished in eight years. he didn't like to brag about himself. he wouldn't do that. he didn't like the word legacy, but he did take pride in the country, great pride what his son did as president but he didn't like to talk about what he did. >> thank you for sharing your thoughts for us today. obviously a busy day for all we'll see you soon, i hope >> thank you. >> watching these live pictures now from joint base andrews, we are expecting a brief ceremony here as it is really the
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president's last few moments here in washington, d.c. before the remains move on to houston. >> that's true this is special mission 41 air force one renamed for that when he arrives in houston it will be all about engine 41. he was a trained fan and he will have a special union pacific railcar that takes him from houston to texas a&m which is the presidential library, the burial grounds where barbara and robin now lie. >> you watch these pictures here, take a moment to talk to barbara franklin, long time bush family friend. former u.s. secretary under president bush thank you for joining us. >> delighted it's been a very emotional morning, for sure. >> it has. and we'll continue to be here as we see the hearse doors open here at joint base andrews
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so many narratives and threads going through the guests we've talked to, the eulogies at the cathedral. what's important to you? >> well, it all came out, i think, who he was as a leader and clearly leadership counts. it's one of the things i've lunched fr lun learned from him and quality of character, that came out in a whole lot of different ways i thought it was a very befitting appropriate emotional, but he would have liked it, service. i'm just honored to have served with him and to have known him and is barbara bush for 40 years. it started when i was a young white house staffer, and that would have been the nixon white house. he was the ambassador to the u.n. that's where i met them both we became friends over the years. i feel that he was a great
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example for me in so many ways, and you've heard a lot of it about his character, about his kindness, his courage, his humor all of that was really true. i totally cherish all the times that i've spent with him and with them. and particularly at ken kennebunkport looking out that sea and wall of rocks, just perfectly wonderful. i'm tearing up just talking to you about that as i was this morning after the president bush 43 spoke. that was really touching they all -- everything was perfect. the music was perfect. the -- those who spoke did exactly -- and said exactly the right things, everyone who was there wanted to be there
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it's just -- it just was wonderful. i was sitting almost behind angela merkel. i was glad that germany got mentioned. it would not have happened, that reunification without president bush one thing he did was to send me to china to restart commercial relations with that country aftthat would have been in '92 -- >> barbara i apologize for the interruption let's listen in as the casket is removed from the hearse at joint base andrews ♪ ♪
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>> you're watching george w. bush and the rest of the family and those who will be traveling to houston joining us is allen simpson, the former senator of wyoming and
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the fabulous eulogist of president george h.w. bush what a fantastic job you did i read you said there was emotion emotion in preparing your remarks, but the emotion we felt was the appreciation of your sharing the stories for us for some light moments as well let's go back and play one of those sound bites -- well, we'll skip that for you. let's get it right from you as you join us here with more reflections on how you thought that all went today. >> well, it was a powerful thing. it was a great honor for me. you know, i was holding myself up very well until george -- until they reported that my pal, jim baker, went in and actually handled the -- you know, rubbed the feet of the president while he was lying there in his last hours of life. that was when i -- the tears
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flew he was a delicious guy there was nobody ever like him i was privileged to share his friendship for over 50 some years. and then there were a couple of little gems there that george lived by and i did, too. it's called hatred corrodes the container it's carried in. good to remember that one. the other one is humor is the universal solvent against the abrasive elements of life. they ought to learn this around this joint >> we've been repeating those lines all afternoon, senator people are taking those quotes from you it's all over social media people wonder if you're targeting those words at a certain constituency in washington today, or it was a reflection of the president's life -- >> it's the reflection of the president's life there's too much targeting going on around this place life is not really all chaos and 24/7 news.
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it really isn't. it's called silence and meditation and reflection and for god's sakes, it's clarity. it's not confusion you know, you've got to sort out the crap be a good thing for them to start doing. that's good for the world. >> we have a moment we'd like to share with viewers let's take a listen. >> it required the critical ingredient called revenue. translated into the word taxes translated into the words read my lips. and a group went to george and said, look, we can get this package done, but we must have some revenue he said -- and i'll never forget it -- he said what i've said on that subject sure puts a hell of a lot of heat on me. >> senator, that's the crux of it, isn't it he knew he'd take the heat but
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thought it was the right thing to do? >> sure it was he was thinking of the country instead of his party that's what he was doing that's what he was doing, he was -- that's the way he was he knew what a critical thing it was. boy, i tell you, it couldn't have been anymore -- i mean, you know, but it went over to the house and the guys that were at the conclave at andrews air base voted against it they said they were for it when they were there and then they voted against it that leaves you hanging and he never felt a bit of bitterness towards those people i would have felt a shred of it. >> one of the biggest laughs you got was when you were describing -- you were taking your lumps in washington he took you to camp david. his approval was in the 93% range and yours was in the .93% range. >> that's right. >> what an incredible tale of personal loyalty over political loyalty. >> yeah, and i said to him, you
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know, i'm not unmindful of what you're doing here, pal your buddy is laying in the weeds and here are you taking us up to camp david you know, this is big. he said i don't want to hear anymore about that he said there were guys on my staff who said i shouldn't do this, but this is about friendship and loyalty that's george bush that was >> senator, there are people who look at the remarks today, hear the stories, reflect on the character of the president and to the anecdote to james baker rubbing his feet, are we losing an entire generation of great men? >> just a second, excuse me. i'm talking about my wife, not somebody else. go ahead. >> i wonder how much of this, his demeanor, his great, him being a gentleman, doing the right thing, do you think that passes with his generation
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is there -- as he would have said plenty of reason for hope in washington? >> well, i don't know. you know, washington is a reflection of america. america is a reflection of washington i always say that wherever you are and whatever you do, about 15% of the people you deal with every day and your business or whatever your church or whatever you're doing, about 15% are screwballs, light weights and boobs. you wouldn't want those people not represented in congress. >> finally, senator, you got mentioned in the president's eulogy as well let's take a quick listen to that. >> he could tease and needle but never out of malice. he placed great value on a good joke that's why he chose simpson to speak. >> now, wait a minute, senator,
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was that too big a laugh line for your liking? >> i'm still chuckling it was well worthwhile it was really a beautiful, you know -- george w., you know, i knew him when he said to people, you know, dad didn't always agree with me. let me tell you, he drove george and barbara crazy. i happened to be watching all that take place, too, that was back in those years. his mother and father were a great force for good and look what he did. he's a most marvelous young man at 60 something. yeah, he -- it was a good thing to have those former presidents there. i know them all. i've worked with clinton, i don't know trump well, but i worked with jimmy carter he was my first president i
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served and barack obama. you know, it was very special. i said, you know, those people in the front row know the slings and arrows so it goes it's a strange place maybe there was something in the aura or air that would seep down into the body of america but it's still nice to be kind and decent and you can still be tough and honorpartisan god knows i am down at the bottom of the bowels and your gut, you've got to have manners and you've got to have love and that's tough for people to even admit in these times. they don't know what love is when you say love your neighbor as yourself, boy, your neighbor ain't getting much some of the guys i've met. >> senator, we love the way you bring it state and a message that we all needed to hear today. thank you for taking a couple minutes. thank you very much. >> and they played going home.
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god, i'm sitting in the car and they're playing going home god, almighty. that must have been -- not a dry eye in the house, anyway >> extra tissues today thank you, senator. >> okay. thank you very much. >> thank you so much >> senator allen simpson. >> joining us now is the former s.e.c. chairman under president george h.w. bush a tough act to follow, admittedly, thank you for joining us and, man, has anything not been said at this point >> certainly senator simpson was right about not a dry eye in the house. i ran through my kleenex supply and most everybody around me did, too it's hard to say good bye. we take joy in his life and accomplishments, but it's hard to say good bye. >> would you have shared -- could you share any stories with us you might have, if you had the opportunity there at the eulogy >> well, i thought the whole
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ceremony was -- the best word to describe it -- majestic. the eulogies were terrific and caught so many aspects of the president's character. and personality, his sense of humor. i thought president george w.'s line of he loved a good joke and that's why he put simpson on the program was one of the best lines in terms of laughs and, you know, maybe it seems in congress for people to be saying funny things but george h.w. bush was a funny guy. he loved jokes he loved seeing the humor in life whether it was great accomplishments and good times or bad, he instinctually knew that humor helped us all get through the challenge ks we fac.
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it was part of his life and appropriately was part of the ceremony. >> can you help us understand what the conversations were like upon arrival today, say, at the cathedr cathedral? what were people saying person to person? >> well, first of all, we all got here very early. we were reporting for our motorcade between 7:00 and 8:30 in the morning so most of us, because of all the security, got into the cathedral very early so there was a period of three hours or two and a half, three hours where people are -- have found their seats and then nothing's happening yet. and so that period of time is somewhat of a large reunion. people walking around the church and seeing friends and people from all over the world. some of them we haven't seen in a long time, so you reconnect with people you served with.
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and i think the common denominator was people sharing stories about 41 and about our times together and it -- that part of it is happy. i mean, we were -- everyone in that cathedral and across the country is sad, but on the other hand, really resolved to take joy in his life and his accomplishments and what he stood for and hope that we can pass that along to future generations. i know all of us, when i served at the s.e.c. and i worked starting in 1982 in the white house when he was vice president and through his first year in the west wing, first year of his presidency before going to the s.e.c. and i know, all of us felt that we were an extension of the president's goals, of his personality, and of his hopes
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and dreams for america i remember vividly the night before he was inaugurated, a group of the senior staff and him telling us point blank face to face, now, i wasn't elected to be president of the republicans. i was elected to be president o every american he wanted all of us on the staff to be sure that we looked for the best ideas in the country, not the best ideas in the republican party that was who he was. a broad thinker, proud -- so proud to be an american. completely inclusive and wanting to find the best way forward so that people all over the country could prosper and be safe and that we could all enjoy the blessings of this great country. >> we're seeing -- >> in our own way -- >> yep, preparing to take off. go ahead
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we're reminding of the legacy, including the legacy you had at the s.e.c., you licensedthe most etfs. >> etfs. we tried to -- reflecting again, the president's background, he was not at all hesitant to say if people break the law they should be held accountable i never had any problem from him on being tough on enforcement where people are lying and cheating and stealing other people's money they should go to jail or other sanctions so on the one hand, he was very supportive of good strong law enforcement. coupled with that, he was equally a believer that overly broad regulation, you know, paperwork, mickey mouse, no offense to mickey, but overly broad regulation hurts everybody. it doesn't help control crime, it doesn't help build a good
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economy. it doesn't make the market more efficient. so you ought to constantly be reassessing which regulations are working and which ones don't. so i remember very early in my tenure, we passed a rule 144a that decontrolled registration for privately placed debt securities to large investors and allows those securities to be traded amongst life insurance companies, other large sophisticated investors. there's probably been a couple trillion dollars of 144a securities issued more cheaply since then and not a person has suffered you know, you can couple deregulation, thoughtful deregulation and he was all about thoughtful reducing of regulation and coupling it with knowing what the core standards are and being sure you accomplish them. >> indeed. indeed richard, thank you so much appreciate your insights very
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much today we see special mission 41 take off and the 41st president says good bye to washington one last time >> and thank you for joining us here for cnbc special coverage all day today as you watch that plane take off into the sky. >> look for arrivals around 4:15 p.m. local time in houston. they actually will do a low flyover over the presidential library before arriving at ellington. and then, of course, tomorrow he'll make his way on that train named for him, a union pacific train, with the locomotive number 4141 that will carry his body to college station where he will be buried alongside his wife of 73 years, barbara, and, of course, their first daughter, robin. that concludes cnbc's special coverage of the state funeral of president george h.w. bush live from washington, d.c.
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a special edition of fast money with melissa lee starts after this i am a family man.
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i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.
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a special edition of fast money starts right now live at the nasdaq markets, i'm melissa lee. our mission this afternoon, to get you ready for trading tomorrow this after yesterday's wild ride that saw the dow down 800 points, adding to the panic we've seen in the past couple of months the dow has fallen 7% from the high, the nasdaq is down 12% the fear factor for the market is the fed the fed releasing the beige boo moments ago. >> and the change in the beige book, the collection of analysts from the 12 districts, they said the economy grew optimism has waned let's look at what's behind that waning optimism. tariff is one thing, rising
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interest rates is another. labor market constraints is a third one. in fact, wage growth is toward the higher side of modest to moderate according to the beige book and tariff induced cost increases were said to be spreading more broadly the beige book mentioning the word tariff 39 times you can see that's in decline. we've been counting this for most of this year. still an elevated number of tariff mentions compared to the beginning of the year, but down just a little bit. price increases were at a modest pace, the fed follows that carefully. several districts noted they saw falling oil prices on the other side of that, districts noticed rising freight costs and housing costs continued to rise. there is backup in this report here for some of the concern in the markets or in the bond market for the economy it's the first time i remember really seeing it in quite a few beige books going back now. >> how does this sync up with what the market may be expecting
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later this month in terms of one hike and maybe a more dovish stance in the statement? >> it's all in the outlook i'll be very interested in the ism report and of course we'll get productivity and trade and the adp number to see how -- jobs can be a lagging indicator. you want to watch that we'll get the jobs number on friday expectations can be important, but they're not necessarily determinative. we'll see. but certainly i'd rather have people hopeful for the future than not if they're buying today and not hopeful for tomorrow, i'll take that, too. >> steve, thank you. how are we setting up, given that we're expecting the jobs number on friday how are we setting up for trade? >> if anything, if the fed is in dovish camp i think it backs up that logic i think the fed has pretty much told you -- i think the fed has pretty much told you that maybe
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now they're not going to be as hawkish going into next year december is a done deal. i think they move three times, but the market is probably priced in twice. i'm not certain by the way that this sell off was on the back of the fed. i think there's other things going on ism and jobs on friday is going to be a pretty big deal. >> the isms that were out of europe this morning, the industrial data, the pmis continue to deteriorate. europe's a problem when you think about where we are -- i would argue once again i'll say it at 5:00 p.m. and the early bird special here, growth scare is much worse than inflation scare. i'd rather have a fed involved because they're worried about the economy overheating than the fed backing off an economy that is rapidly deaccelerating. we had global growth at 4.3%, it's now 3%. these are things for the market to be concerned about. bad news is bad news for me. i don't think you should be
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heartened that the beige book is weak. >> are you in the growth scare camp are we witnessing a growth scare? >> well, it sure seems to me -- steve talked about a lot of different things, one of them being tariffs, he mentioned it 39 different times i think that's the overwhelming aspect of this market in front of us right now. that's also connected to a lot of the movement weave se saw ony and tuesday. the accelerated move yesterday, and i think a lot of that is more tied to the tariffs i'm with you i think we do get this move. i think it's a done deal in terms of december. going forward, three i think is aggressive but they're going to be data dependent. that's what they tell us if that's the case, maybe it's two, maybe it's three. >> tariffs were mentioned 39 times in the beige book. overnight from china we did get pretty positive commentary from the chinese government saying they were optimistic, that the
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talks were successful. >> but the president faced him. >> the tariff ban? >> yeah, and it sounds like a little disappointing but then they have to play a game here. i think what's important here, i was looking at guy's rss feed, you might look -- >> sure i do. >> did you see that the nebraska farm bureau said the tariffs have cost their farmers a billion dollars. one of the things that stuck out is optimism wanes when businesses start losing money and they don't know where it's going to end, it means they buy less tractors, they hire less hands. they have a hard time forecasting. that's what's going on as we lap these tax cuts year over year. i think the tariffs are sucking out any tailwind that we had. >> that's what the earnings season gave us that was what we got as we went through the earnings season. once we got through the first couple of weeks, everything seemed to be related to what
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you're saying. they don't have clarity. when you don't have clarity, that's a problem people want to hear what do you really think is going to happen, but they can't forecast that that's been the problem for quite a while and it hasn't been resolved. >> it submarines the outlet for eps. remember that same kid in karate kid when they said sweep the leg. what tariffs are doing is they're sweeping the leg of the global economy everybody expected we're going to continue to see this fiscal policy dynamic hard at work helping earnings companies aren't spending, they're on hold right now. if the economy continues to slow -- and we're hearing this from guests who come on the show and markets will become a major factor. >> finally we have investment banks being a little bit more bearish when it comes to their outlets for 2019 when you have jp morgan saying cash is king, you have bank of
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america saying they start bearish stocks it's really starting to crescendo here. >> it's interesting, going into this week, last week, i thought that, again, president trump would come out of this weekend with a framework for a deal. we're great friends. a lot of that actually did happen and monday you saw the rally never in my wildest dreams did i think he would submarine this rally with the tariff man tweet. it's very hard to handicap so it goes back to this. what are the real headwinds the market is facing i think it's definitely tariffs. you're trying to deal with something in 90 days with the chinese that's taken 20 years to framework out. i don't know how that gets done. >> back to the stock market, it has a maga problem despite the fact -- >> that's caught it. >> i guess. >> it's the only major equity index, maga is up.
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these are three of the biggest companies in the world if you think about as wehead into 2019 -- now those companies don't have a huge tariff issue, but it corporate spending, we obviously know advertising is cyclical apple has their own issues that could be tariff related. if those stocks give it up, what else do we have? >> i don't think we have a maga problem. >> we have a problem because they're -- >> do you know what i mean -- >> people are talking about apple like they're going out of business you can't tell me it's a hot stock right now. >> split it up. >> i'm done. >> come on, give me something. bring it. >> you're missing a major point. most of the stocks in most of these indices are down tremendously they're trading like we're about to have a recession at some point in 2019. if those other names follow suit and they lag 18 month performance you'll have a stock market in the u.s. that is down considerably from where it is
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now. >> there was a point in which the industrial stocks were leading the market down financials were underperforming, but qqq has been where the performance is. i think those four stocks which were holding up the market, i think they failed. it's not even about when maga gives ground, i think it has i think we're seeing what that does to the market. >> our next guest has the correction let's bring in jeff mills, great to have you with us. how much more further to go? >> look, i think when you think about yesterday, just putting aside what the cause was and you think about what's likely to happen in the near term, even on the good days we've seen within the correction, i think we're operating within that operational phase. monday, the market was up over 1% decliners on the nyse, three to one. these are areas we would look to to tick the box on the technical
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side to say okay we're ready to see a momentum shift i guess it's not that surprising to me to see yield curve inversion lead to a one day panic. our particular point of view is it's not a good timing tool. you go back throughout history, you have to acknowledge the fact that the yield curve inverted. you're not going to be able to time the market based on that. i went back and looked at tw and fives. you saw an inversion november of '05, october of '98 and december of '88 in all three of these periods it was 18-24 months before the market peaked. >> how doia g you get set up fo 2019 is cash looking like a viable option here? >> it's a viable option more so than it was before, clearly. rates have gone up quite a bit i'll break my own rulehere a little bit using interest rates to kind of justify where valuations are when you look out over the long
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term it's not such a good idea typically starting in the lowest interest rates regimes, actually returns over the next ten years are not very good. in the near term, i think low interest rates could perpetuate valuations where they are right now. i think the way to quaintiquantk at the equity risk premium subtract the ten year treasury year, you're at 260 basis points 12 month forward returns look generally good when we're at these levels so in that regard i think we could have some room to run in the short term. >> someone might be thinking we're just at 3.75% not too long ago and that's when problems started happening. it feels like we're boxed in if that pain point was 3.25%, i mean, that's not much of a runway. >> i take what tim said as it relates to you don't necessarily
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want the fed to have to back off because they can't raise rates honestly, that's been the case if you look at the correlation between stocks and interest rates, it's only turned negative three times over the past 20 years. it was '99, '06 and '14. not necessarily the greatest environments for markets although we didn't go into negative territory, we approached negative territory. you're getting to a point where interest rates started to look like it was rising to a level that was restrictive to business activity and the market was reacting to that part of our thesis is that the fed needs to back off a little bit if we want to see the market rise next year. >> it's interesting. i'm not a student of history like you are in terms of the yield curve. in this case, the ten year -- instead of the front end of the curve catching up to the back, the back is being reverted down to two, which i don't know if that's happened historically, but it's happened at a quick pace is that a harbinger for bad things >> a lot of people -- i saw headlines yesterday, it's like rates are falling because it's a growth scare
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maybe. you have to remember there was negative short positions in the ten year futures markets i think part of the swiftness of the move yesterday was an unwinding of really extreme positioning. that's number one. we also do a decomposition of the ten year back at pnc you can break the ten year treasury yield into inflation expectations, the term premium growth expectations. it's not perfect but it's still trending higher typically you'll see a significant rollover there when the fixed income market is actually signaling a problem in growth we haven't seen that yet. >> how do you position your portfolio in this environment? >> i think if you go back to the building blocks of asset allocation, just start there i think there's been a shift to value. people assume we've crossed the line of demarcation and the growth trade is dead i don't think that's the case. we're at somewhat of an unusual point in the business cycle for growth to hand the baton off to value in a really consistent way.
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typically we think economic growth is going to slow next year earnings growth is going to slow next year. most often than not, people are willing to pay for growth in that environment typically you see value accelerate off the bottom in a recovery we're not at that stage yet. when you think about large versus small, it's a cycle argument if you look at the fundamentals, valuation is better, and for small caps, 30% of companies aren't earning money debt ratios are worse. i think you want to be selective in small cap for sure. >> talk about the value, let's drill deeper into that financials could be argued to have extreme value in the industrial change. there's very good value. what do you like because the environment we're talking about, especially the implications for the yield curve, many banks are at record earnings we're deal ing with a peak auto cycle, we're hearing from the rails, what do you want to do?
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>> in value i think you'll continue to struggle because of that i'm not sure that rates are snapping back higher i don't know that we'll see a steepening in the yield curve. i would be cautious in some of those areas like banks that are going to be levered to that type of environment when you think about how things tend to roll in the later innings of the cycle, tech still tends to be well i know we've seen a rotation into healthcare. healthcare does tend to do well. we're focusing our effort in those areas and not really making a big push into value. >> jeff, great to seeyou, than you. >> thanks. >> pete, you like healthcare >> tech, healthcare. i mean, music to my ears obviously the financials have been a struggle. we know how much -- because tim mentioned it, you've got record numbers across the board yet -- >> wouldn't you let go of that trade? >> i haven't seen a reason yet to. >> is it going to be a lot -- >> it would take a lot to get me shaken i think some are better opportunities. once again -- i will tell you
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this, in terms of the sell off we saw yesterday, i think there are multiple factors that are much more outside of the market itself than within the market itself. >> what do you mean by that? >> the combination of algorithms, which i think was huge on top of that, and i know you'll disagree with me. >> they're killing ge and -- >> ge was already dead algorithms didn't kill them. you're talking about algorithms that are now in some cases 80% at times in terms of volume. i mean, that says a lot. also, the up tick rule if you just go back and look when they took that out, it's changed how the markets trade, particularly the down side the -- >> didn't they do this for the last seven years, we literally -- >> to the upside there's no doubt that there are -- >> i don't know why you think this is a massive structural sort of thing. i'll just tell you this, when i look at names like ge and
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goldman and deutsche bank i see a lot of investors i think it's lazy. if i go back and look in 1999 or 2000 before things topped or '06, '07 before things topped, everything that was a real problem that made 52 week lows every day was idiosyncratic. >> but there has to be a -- >> are you -- >> yeah, it's called what we just had we just had that 3.25% on the ten year and then everything went crazy, right? the dollars started to go up and then crude -- >> so i'm not sure i disagree with what you're saying. i think ge and deutsche bank have issues that are their own and they're years and possibly decades in the making. there's two scenarios that don't look terribly good this reminds me of late summer 2011 by the way, this is exactly what
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we've done all fall. we've had three daw doraw downs then you bottomed into the new year before you gave markets to rally. it looks like we could be there again, too. >> coming up, we're just getting news out of facebook, the social media giant is supporting sheryl sandberg when it comes to the george soros scandal we'll bring you the details next. mary barra is heading to the hill today to meet with lawmakers after cutting job and closing plants here in the u.s oil ending the day lower as opec gets ready for a big meeting tomorrow a top technicians says we're heading for an energy breakout we've got all the details. we're live in times square, much more ahead on this very special fast money comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget.
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we've got a news alert on facebook we're live in los angeles with more on that julia? >> facebook has sent a letter to george soros' foundation, the letter backing sheryl sandberg's research into soros saying she was being truthful th we have a copy of the letter it's written by facebook's general counsel on behalf of the company's board. he writes we take issues with several points you raise saying that sandberg's question into whether soros had shorted facebook stock was entirely appropriate given her role as coo. facebook has repeat lade aedly n responsibility to identify to this threat. referencing russian manipulation of the election.
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they note they've created an independent election council they're saying it's not fair to say that facebook has, quote, failed to take responsibility. responding to criticisms by gas par -- of the open society foundation saying they do believe that facebook's services help people. really refuting many of those attacks. you see facebook shares now down over 2%. back over to you. >> did you read this as a defense of sheryl sandberg in that you think the board stands behind her as coo? >> it certainly appears so in this letter. this was a scientific defense of sandberg sandberg has faced so much criticism recently for how this whole issue of definers went down this was a firm that was hired by people who were under her, under the communications team that was used to share information about george soros and attack facebook's critics. the issue here is that she said
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she didn't know anything specific about the hiring of definers then it came out she actually had asked her team to look into whether soros had shorted facebook shares. so there was this sort of back and forth, did she know and was she unclear about that did she not know what they're trying to say here is that while it was -- she did ask her staff to look into it that was appropriate and it was separate from the firm that was already doing the work on soros and his organization. >> julia, thank you. here's a question for you guys, facebook stock has not traded too well this year. that's being generous. let's say you gedt a headline, sheryl sandberg is out, how is it received? >> you look at the two names, and i think that would not knock people down. eventually does that maybe work for them maybe. in the short term the sellers
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come out easily to push this down at least 10%, 15%. >> i think change is needed there. i think the market has already pushed somebody out. i think there are trust issues let's be clear, my opinion, the company hasn't really acknowledged or taken any of the blame for a lot of the things that have happened in the past they can't acknowledge the future they can't even identify some of the costs and services to their business and the impact they'll have that's the problem that's why it's a cheap multiple, that's why it will stay a cheap multiple. >> i could have guessed what tim was going to say. >> yeah. >> but i pose the same question to you, guy, because the problem is perception even, just the -- let's say there's not even a real problem -- of corporate governance. >> i say 25% that's probably exactly right. sports -- you like sports analogies. >> love sports analogies. >> we have time today because we're going to like, 7:00.
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facebook for years was playing offense. and they were doing it extraordinarily well now they're forced to play defense and that is very difficult in this environment because everybody's coming after them so tim's been on this for a while. how do you buy the stock i thought last quarter, i thought that quarter and the comments it made was good enough to have put it in the bottom for about a day and a half it looked that way. here we are right back down. to answer your question, i think $125. >> what quarter are we in in the facebook business in terms of their issues >> listen, she asks the questions around here, all right? >> am i here did i have to come in today? >> no. no >> i want to keep it going. >> i thought your initial reaction is a good one it would signify there's bigger issues they need to keep this stuff compartmentalized. it wasn't more than maybe a year
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ago where her name was being bandied around as like, uber needed a new ceo it's a shame because she probably is a rock star ceo sort of candidate, but that's on the back burner for now. >> all right, still ahead we'll have much more on yesterday's market sell off and answer your tweets about how to manage your portfolio. send us your questions on twitter. oil is edging higher today etg pec gets ready for its meintomorrow all the details right after this california phones offers free specialized phones... like cordless phones.
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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program visit right now or call during business hours. the dow is now fallen 7% from the highs, s&p 500 down 8% and the nasdaq down 12% and a big fear factor for the market, the fed. it released the beige book minutes moments ago. let's get to bob who is standing by to break all this down. >> the important thing is for once it's not necessarily about the fed. this is really about fear of growth here and lack of growth tim

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