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tv   The Lead With Jake Tapper  CNN  August 24, 2015 1:00pm-2:01pm PDT

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believe me, there is no joy behind this applause right now, not here, not today. >> it will take a few minutes to settle the closing prices. we'll hear this bell and see the -- and we're going to see the market tick around here trying to find its footing on the close. >> i think what you saw cause displeasure, they stopped wringing the bell until it was 4:00 exactly, maybe not the enthusiasm they like toss here. we're going to settle in right now at 584 points at 4:00. that is on top of the 500-point loss we saw earlier this week. 580 points is a bad, awful, no-good day, as they would say. however, it's not 1,000 points. >> if you looked at the opening bell this morning and saw 1,000 points on the dow and looked at the close and say, wow, this is better than i thought. perspective here, a 4%, almost 4% move is a big move in one day
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and there are big fears about what happens the rest of the week. the big stocks, most-yly traded, bank of america, apple, netflix. apple in particular had an insane day. at one point it was positive, up several percent, and then down again. when you look at some of these names, you see the irrational fear, then greed, then fear again in a stock market. >> fear, greed, loss of confidence, loss of confidence in particular in china. no one really understands or feels like they understand what's happening in china. perhaps you've seen the slowdown? growth. there is that fear right now, revenue comes from overseas, so it matters. what happens in china matters, and there's great concern that the chinese have been trying so hard to manage, and they might not have the tools. >> they don't have the tools that a lot of people thought
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they had. where there's fear, you see drops like we're looking today. i'm going to go to cristina alesci. we talked about china, we talked about the fears of growth there, maybe not as far and as fast as people thought, but there are other concerns weighing down this market. what will the fed do in september? will they still raise rates like everyone thought? and oil prices, commodity prices in general, but particularly oil falling so far over the last several months. >> that's right, john. oil, as you know, is a barometer for global economic growth. right now it's tanking. that is not helping this market. also, you mentioned the fed. the fed was supposed to raise rates in september, possibly december. now there is a lot of questions, will the fed raise rates in the middle of this kind of volatility? the answer to that is that it probably will. maybe it will do it a big later
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than it had planned, but also an important question to the fed, when it does decide to raise rates, by how much and how fast? and that is really going to determine what happens to the market from there, because as you know, zero interest rates have really acted as a stimulus to this economy. once that is gone, that is going to be a real headwind for a lot of traders and investors. speaking to some of the traders on the floor today, they were very concerned about china, not just about a slowdown, but as you mentioned, whether they can truth the data coming out of that country, and we saw those issues come up in a white house press conference. a lot of those questions. i frankly had not those kinds of questions about, is china in a crisis? will we have an emerging market meltdown? i had not heard those until about last week really bubble up to the surface of mainstream discussion. these were things that professionals were talking about, but now we're seeing it
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bubble up into the mainstream discussion, which is also very disconcerting. two things we know from here for sure after having been on the floor all day. volatility is back. that means we're not going to have the kind of market that we had for the last four years, which it had a few bumps, but it was relatively on a straight shot up. secondly, investors will have to be patient with this. the market is trying to find a floor, a low price where it will hit, and those are the two things that we're going -- still is an open question. we're going to pay attention to asian trading overnight. cristina alesci, thank you so much. christine romans is still here with me. one of the reasons, lack of demand for commodities, china doesn't need it or want it as much as before. >> and we're producing a lot of it around the world. producing something at the same time, less demand from china,
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and that means the price declines. you're seeing below $40 oil, and many are seeing $30, and we even had a call from cnn money, the top analysts say $15. that's really good for gas prices and for consumer spending, it's terrible for companies in your 401(k) in the oil business, it's also bad for thinks cunning and economies who deal in oil, produce oil and need to sell into the global market. the oil crash is good for me, not so good in terms of stability for the economy. >> anything that goes down this far tend to work. i'm joined by cnn's financial analyst, rana, first of all, what a day. >> well, you know, i'm not surprised in some ways. we haven't even had a 10% correction since 2011, i think the markets knew this was coming for some time. i think the jitters you've seen in china, and the schizophrenic
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way in which policy decisions are being taken in the chinese they brewed up a debt bubble over the last few years of epic propossessions. the debt to gdp ratio in china is about 300%, more than three times what it is in the u.s., just to give you a sense of what's happening. that's now bursting. the fall jo is because of that. >> we saw josh earn zest being asked, whenever you see a drop of 1,000 points, people get nervous. so he was asked, how are things? has the president been briefed? what he essentially said is the economy is a lot better off than several years ago. is today is what happened friday, are those reasons to be
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at least a little concerned? >>s in u.s. economy, the underlying story hasn't changed. there's still slow-and-steady job growth. it's an okay recovery, but two things are different now. china has slowed precipitously. china makes up about three times the amount of the global economy, as it did ten years ago. so it's a much bigger deal when china slows down, about 30% of u.s. corporate profits come from emerging marge, namely china. so that's a big deal. the other thing is this constraints what the fed might be able to do with interest rates. that's brings up what i think is a key point. we're hearing the echos of the 2008 crisis. when u.s. companies and consumers deleveraged, it didn't disappear. it went to china and went to governments who picked up all the spending to get the global economy back on track. they're out of ammo. the fed will be raising rates soon, probably not quickly, but there's no more money left, no more ammo left to do the
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monetary and fiscal stimulus we had right after 2008. >> without the ammo here in the u.s. and without the trust that china can pick it up, it's a bad cocktail. rana foroohar, thank you so much. joining miss is alison kosikosik you've been here all day with these traders. what a day. down 1,000, then up another 800, then down where we are right now. >> this is why they make thor neck braces for days like this, when you go thus they roller coaster movers, talking to some of the traders, when they saw the opening bell and the dow drop, there was shock. traders told me you could hear the noise level in this -- on this exchange -- >> and stephen through a lot. they are genuinely surprised. this was oh, my god. >> one told me he was about to pass on the when he sauce this
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number go so low. this wasn't expected. the sell-off was expected, but not something like this. it went through the roller coaster moves. there is still more to fall, at least according to some of these traders. >> not the end of it yet, what do you mean by that? >> you can't expect more selling tomorrow, or maybe china will come out and make some sort of bold move. maybe the fed will say, we're not going to tighten or raise rates. those kinds of things could add some calm to the market, but until you see some sort of drastic move made by the chinese government or even the fed, what this market is looking for is some sort of something, some sort of climactic event to sort of put a stop to the sets that we see, to the bloomshe had. we were down about that you, so the people here old enough to
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remember that, as bad as it is now, it could be a heck of a lot worse. >> keep in mind we saw the dow drop over 1,000 points, many believe that was a knee-jerk reaction based on what be saw happen in stocks in china. that was really a shock to the market here. so what we're going to want to watch is tonight when the asian markets open, let's see if we see more follow-through, more selling. if china does something drastic, it could finally put a stop to it. >> thank you. four-plus hours until the asian markets open. we're here on the exchange, we've talked about the global set adjustment what about me? what about you? what about your 401(k)? what should you be doing now? doing tonight before the asian markets open? we'll discuss that, coming up next.
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all right. john berman on the stokes. is the market closed just a few minutes ago. it sounds bad, but not as bad as it could have been, not as bad as it looked in the ten first minutes of trading, when the market dropped 1,000 points in ten minutes, it's never done it that badly, that quickly in the history of the steam. joining us to talk about what this means for you, what this means for your investments, your retirement, your 529s, i'm joined by the and diane swank at mesereau, also joined by chief business correspondent, christine romans. diane, let me start with you. you're sitting at home right now, seeing 588 points down on monday. on friday it was down 500 points. if you're like me, i want to try
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to fix this. what do you do? >> i don't know how to fix it. if i could wave a magic wand, i certainly would. we know that employment is up, prices at the pumper plummeting, all except in my backyard in chicago where we have refining problems. we also know the housing market is picking up. that's what happens to the overwhelming majority of households. this is really hard. i won't discount that, but we are moving into this storm with some tailwinds that will leave us battered, but not beaten as we get through it. >> mark zandy, we've been expecting the federal reserve to very close to raising the interest rates, which would signal that we could get back to a normal monetary policy. is that on hold now? is it wise to raise interest rates when we've seen this kind of turmoil? >> before i answer that
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question, let me answer john's question about what you should do. and my answer is -- nothing. because if you're invested in the stock market, you should have a horizon of four to five years, you should look through the ups and downs. the market goes up, it goes down, it goes all around. if your horizon is at least four to five years, you should look completely through this and do nothing. >> you know, mark, i always say if you're looking for your 401(k) log-in on a day like today, you shouldn't be looking at it. >> don't look. don't look. >> i don't look at it today. >> that's it. does the fed raise rates? >> yeah, okay. so odds are much lower today than they say a week ago before it all -- that the fed is going to start to raise interest rates, but you know, i think the story is still being written here. if what we have seen is what's going to happen, down 10% as a
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typical garden variety stock market, many of them over the year, in a week or two if the market sets in, there will be no effect on the economy, and the fed will go -- now, i don't know what's going to happen. in the next week or two, if things keep going south, then yeah, they're not going to raise rates in september. we don't know that. at this point, this feels like a garden variety kind of correction to me. >> you guys are all financial people, all so freaking calm right now. i'm going the market dropped 1,000 points in the last two days. >> we're watching the chinese markets. >> this is really good advice. i'm glad they're listening to you, but diane, the glass hamp empty heerp, at least when it comes to china. these are now serious concerns, the confidence you now see from investors, and what we're being told by china, if their economy is really growing, as fast as we
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though, if they can really handle the economic blip, is it something that might last more than a day or two, diane? >> i do think it's something, i think the fed is now taking september off the table, but we said fed president lockhart talk about, and he still wants a rate hike this year, even if just in the last calendar days of the year. that said, there's a lot of turmoil out there, a lot of uncertainly. the fed compounded that by being wishy-washy in what they're thinking about in the most recent statements. the china situation, what's important about it, this is a big consumers market. they don't even need a hard landing. they can still be growing 5 to 6%, that means we're not selling the cars, consumers electronics to them. they're the consumer of last resort now. they're not going to be that. >> diane, mark, christine
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romans, thanks for walking us through this, holding our hand. coming up next, joe biden, a step closer perhaps for running for president for real? and jeb bush heading to the border? what does donald trump think about that? stay with us. ♪ irresistible moments deserve irresistibles treats. new from meow mix with real salmon chicken or tuna. the only treat cats ask for by name. super poligrip holds your dentures tightly in place. so you never have to hold back. laugh loud. live loud. super poligrip. get strong all day hold.
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welcome back to "the lead." john berman live from the new york stock exchange, where there'sing a tumultuous day down here, the market down 580 points. that's bad. also in our world lead, signs
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that north and south korea are pulling back from the brink of war. there is a new deal with the two hated enemies. we're also learning just how close new york new york might have come to firing a missile and how serious the u.s. took the possibility of an all-out war there on the peninsula. cnn pentagon correspondent barbara starr broke the store. she has the details. >> john, we now know much more about why the united states has been so worried since the weekend. young north koreans signing up to join the military as tensions rose over the weekend. >> translator: we, the young generation, are waiting to wipe out the united states. >> reporter: now there is a peace agreement. >> it was a very sense several days. >> reporter: cnn has learned just hose worried top u.s. commanders were that north korean threats of military action were getting real.
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>> we do have a counter-provocation plan to deal with these situation, situation short of all-out war. >> reporter: when the u.s. saw the key units, u.s. commanders took the rare step over the weekend of ordering an immediate review of the war plan to defend the south. >> anytime the north koreans start playing games like this, you've got to take is seriously. you dough know what their next step will be. >> u.s. intelligence satellite imagery and electronic signals show disturbing north korean military movements, including activation of some air defense radars that might be able to detect incoming aircraft. deployment of additional artillery pieces near the dmz. the concern, north korean artillery could hit population centers such's sowell in the south. signs of a potential preparation for a scud missile launch and dozens of warships and
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submarines headed out to sea. >> now it's up to the north to act and not simply just make assurances with respect to their own military activities there on the border. >> reporter: u.s. officials tell cnn they had two major worries -- first, the north koreans took the unusual step of giving a specific deadline for threatening to attack the south if it did not stop the speaker propaganda broadcasts. and second, that the south korean government was considering military retaliation in addition to artillery shells it lobbed as an empty field there at the dmz after the soldiers were hurt in a mine attack from the north. now, u.s. officials are telling me that they also pressed the south koreans to try to work with the north to try to get them to de-escalate the situation. the hope is obviously this peace agreement will last. john? >> barbara starr at the
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york stock exchange, not a happy place this afternoon. the dow losing more than 500 points, this after it lost mar than 500 points on friday. this is now officially a market correction, down more than 10% off of the high, and the traders we have suppose to on the floor tonight, they're simply not sure it's over just yet. so we're keeping an eye on that closely. new details emerging about the five meros who stopped a terror attack. now we're learning another man who jumped into action also has u.s. connections.
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president hollande honored spencer stone, alec skarlatos, and college student anthony sadler. not only did they and a british man subdue a subject, but spencer stone helped to save mark, a french-american profe professor, who was shot in the neck. the suspect had enough, and now they're digging into his past to try to determine if he had links to terrorist groups. martin? >> reporter: it really was a remarkable day here in paris. it was one of those days for three americans, three days ago, they couldn't possibly have imagined. dramatic cell phone video captures. the heavily, bloodied and restrained. >> hi intentions were pretty
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clear. alec skarlatos, spencer stone and stay tuned anthony sadler, are credited with thwarting a deadly attack, along with british passenger chris norman. the group tackled and hog-tied the gunman with neckties while passengers recovered. >> checked on him. >> i had the tray table over my head and i thought, am i next? >> he told his afteria that it could have been much worse. >> you should not be alive at all, and he saved every person's life on that train, including the man who was shot in the neck. >> reporter: according to europe one, that man is french-american mark gugulian, an author a mu size seen here on social media, who was teaching english in paris. in an interview, he told a station that he helped before
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collapsing telling her i'm hit, i'm hit. the three americans and the brit were awarded the highest honor. >> translator: you risked your lives to defend an idea, an idea of liberty and freedom. >> the alleged attack or a ayoub ailing ka sani. he's we had known to hard-line alarmist groups. and he was heavily armed, a pistol and box cutter, all of which his attorney says he found in a pattern. he also told a newspaper that he only wanted to extort money from the passengers and nothing else. saying the suggestion of terrorism, quote, makes him almost laugh. for the passengers aboard that train on friday, the risk was all too real. >> at that time it was either do something or die.
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>> reporter: scar lot toss and stone, they're expected to next gotten to germany, where stone is going to undergo more mel treatment for the injuries he suffered. that will take place at a u.s. military institution. the suspect tomorrow could have an appearance tomorrow in court. either way we are expecting to learn what charges will be if charged against him. >> martin savidge, thanks so much. mr. chairman, thank you so much for being with us. the suspect in custody, counter-terrorism experts point out his name had come up in all sorts of databases. they had that i eyes on him in france, at least, if not other countries as well. they're not concerned if he had any connection to isis. is this someone that the u.s. knew about? did the u.s. have any knowledge about possible isis connections?
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>> can't go to what we knew. i will tell you three european countries had intelligence flags on this individual as a potential terrorist. it's been identified after the fact that he flew from berlin into istanbul and then into syria, presumably to train with isis, and then returned back into europe. this shows you how wide open and vulnerable europe is to foreign fighter travel going through the region, training and then coming back. the fact that three of these european countries had flags on this individual, yet he was ability to travel so freely without being impeded or being flagged or stopped or detained, i think that illustrates how dangerous it is in europe, the threat of a foreign fighter traveling to isis and syria, coming back. >> well, a jammed gun, you know, in a half dozen and american other hero are are all that kept him between a terror attack in
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the lives of many people lost right there. what does is it having your eye on someone being on a list in these foreign countries if you can still get on a train with a lot of guns in an attempt to kill people? >> i'm so proud of our american heroes, and what they did to stop this terrorist event which could have been very lethal. i think the real problem, john, is the flights in and out of istanbul. i was there in the airport last april to do an inspection of the screening that's done. they will tell you they're either not notify by their european partners about travel of suspected terrorists into istanbul and then into syriaia, and then vice versa, the wrurn route, this guys should have had flags all over him in his flights, in his travel back and forth, and for some reason he fell through the cracks. i think that's where, with good intelligence, you stop this type of event.
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>> are european -- are our european allies dropping the ball right now, mr. chairman? >> i wouldn't say dropping the ball. i was over there last april after i went to the middle east, the region, istanbul. we talked about these security gaps, the vulnerability that they have, the idea that they don't screen every passenger has a watch list, and we believe this individual was on a watch list, yet for whatever -- the eu parliament is now changing the law, they had told me, where eu citizens will nowly screened, but they haven't passed that legislation yet. i think it's desperately needed. if anything comes out of this event in a positive way, it will get to have the eu parliament pass the support legislation. >> right, about you we're talking about trainings in europe. you and i know millions of people travel in flans, germany, netherlands, all over that continent on trainings with no screening at all.
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the platforms and trainings are wide open. you don't even need a ticket in some cases. >> i think there's two issues, one the security on the train itself, which is very hard. you need the vigilance of the passengers. the other one is how free it is to travel across europe country to country, almost like within the united states, you don't get checked for documentation going from, say, you know, new york to washington, d.c. same thing in what they call the provinces, basically the european countries, you can travel very freely without any check of documentation, and i -- i think they're going to look at toughening up these standards over there. >> mr. chairman mike mccaul, thank you. >> thank you very much, john. is joe biden about to jump into the 2016 race? a democratic source is now
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not the other way around. john berman in for jake tapper. today i'm down at the new york stock exchange, where we saw financial tremors, the market losing more than 580 points, but our politics lead today -- political tremors. over the weekend joe biden sought done with senator elizabeth warren. sources say the biden camp is leaning towards doing it, and by doing it, i mean making a go at the white house and challenging hillary clinton. the phrase from the vice president, that would be a big plankin' deal. joe johns is at the white house. >> reporter: the vice president's office saying officially no decision has been
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made, any speculation to the contrary would be false. still he got high praise today in the briefing room with no endorsement. joe biden arrived with a lot on his mind, his weekly lunch with the president any oval office taking on new meaning, with speculation swirling. >> everything is pretty interested to find out, what decision the vice president will make. the president has indicated his view that the decision to add joe biden to the ticket as hi running mate was the smartest decision he had ever made in politics. >> reporter: a democratic source tells cnn that the vice president is now leaning more towards running for president than against it. the buzz about a possible biden candidacy has intensified after his secret meeting with influential senator elizabeth warren this weekend.
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>> she's a leading voice in our party, and i'm not surprised that joe biden and others would seek her counsel. >> reporter: so as far as the senator has refused to endorse hillary clinton. >> i don't think anybody's been anointed. i want to see all of the presidential candidates lay where they stand on key is it issues. >> reporter: clinton has battles trust issues. >> reporter: did you wipe the server. >> what, like with a closest other something? >> reporter: the latest poll has 53% of people having an unfavorable view of clinton. bernie sanders seeing the numbers as helping hem. >> i think the evidence is clear, we are gaining, and the polls seem to indicate that her support seems to be receding. >> reporter: biden would face hurdles. in the last few weeks, he's been
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talking to advisers and supporters about whether a run is realistic. biden has been told he need to making a decision by october 1st. as for hillary clinton she is expected to go out to ohio and minnesota this week. john, back to you. >> intrigue in august, joe johns, thank you so much. also in politics, look who is taking a page out of donald trump's playbook. jeb bush heads to the u.s./mexico border. what did he have to say new about his republican rival? that's next. super poligrip seals out more food particles. so your food won't get stuck. and you can enjoy every single bite. eat loud. live loud. super poligrip. seals out more food. hiking brought us togetherdom hikers. but that's not the only thing that keeps us coming back. here's to friends who reach for better.
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all right. john berman in for jake tapper today. i'm down at the new york stock exchange, where it was a brutal day. the dow lost more than 580 points, this after it lost 500 points on friday. people down here shaking their
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heads. you can bet it will be a big political issue in the days and weeks ahead. up until this point, immigration has been really the largest issue in the republican primary. donald trump went down to the mexican border, and guess who went there today? jeb bush. in our polo sandoval went there, too. he faced some questions from reporters? >> that's right, john. there were plenty of politics at play here in south texas, with the last hour, jeb bush walked into the restaurant only about six miles from the u.s./mexican border. he almost immediately start to do bash his policy and started pitching his own. >> jeb bush using his visit to south texas to highlights the differences between his immigration plan and donald trump's. >> his proposal is unrealistic. it will cost hundreds of billions, it will violate people's civil liberties. >> reporter: last month he flew
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his signature plane down to laredo, texas, toured the dividing line between the u.s. and mexico in the midst of a media frenzy. >> we have a tremendous danger on the borders. >> reporter: he's noodles his fellow gop candidate. >> i was down on the border, it's rough, tough stuff. this is not love, this is other things going on. i think he'll probably be able to figure that out, maybe. >> reporter: while they both melt with local officials, the similarities end there. a look at the actual border approximately six miles south of his stop. campaign officials say bush has visited the border before and is familiar with the issues. today's stop in south texas amid rising tensions between the gop rivals with bush tweeting last week -- his marvive inconsisten inconsistency, the plan does not reflect our nation's values. trump later responded. >> jeb bush very weak on
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immigration, wants to let people come in. >> reporter: for all the back-and-forth, the two do have substantial issues. >> i think that people born in this country ought to be american citizens. >> you don't walk over the border and all of a sudden have another american citizen. it doesn't work that way. >> i've talked to the southwest governors, no one thinking we should be building a fence as the solution to security. >> i will build a great, great wall on our southern border, and i will have mexico pay for that wall. >> reporter: and how to deal with the 11 million undocumented immigrants already in the united states. >> the simple fact is there is no plan to desupport 11 million people. we should give them a path to legal status. >> they came over illegally. some are wonderful people, and they've been here for a while. they've got to go out. >> reporter: i did continue to press bush on the controversial use of the word "anchor baby" to
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describe children being born to undocumented immigrant parents in the united states. he said that really what he was referring to was the fraudulent practice of certain individuals intentionally having their children in the united states so as to benefit from this issue here of birthright citizen ship. bush heads to colorado for yet another campaign event. now joining us donald trump former senior adviser, roger stone, and former campaign manager for hillary clinton back in 2008, patty solis doyle. let me start with you, roger. jeb bush wants more of that vote. how is what donald trump is doing, by pushing this immigration plan, pushing this wall, pushing the mass
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deportation of 11 million people, how does that get more than 27% of the louisiana tino vote? >> most of those here -- donald trump will offer hispanic voters, the same thing he offers all voters, economic opportunity, job growth, the chance to restore the wealth of the american dream. in this particular case, donald trump is much closer to the politics of the republican party. jeb has been all over the lot here, he's been for amnesty, then he disavowed his own book. let's face it, his real proposal is the status quo. latly, let me say trump is a builder. when he says he will build a wall, he's quite serious. as ronald reagan says, a country that cannot secure its borders is not a country. >> patty, you watch this from the democratic side, and donald trump is giving jeb bush something of an opportunity at least when it comes to the general election, if he's lucky
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to get there. jeb bush can seem fredlier to the middle on immigration that this donald trump. is this a risk for tto the demo down the line? >> i think he's losing that opportunity. i think he went to the border to try to take back control of this immigration discussion. as you noted, for any republican to within in a national election, they're going to have to peel away from that coalition that barack obama built in 2008 and really maximized in 2012. up to now, jeb bush was the best shot as winning some of those hispanic votes. now that he's gotten down in the mud with donald trump, and yew the terms like anchor babies, he's kind of blowing that opportunity. >> i have about a minute and a half left. this subject is too important to ignore, joe biden meets with elizabeth warren. we are in a biden moment right
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here, patty. you think he's going to do it? you think he can? >> i don't know if he's going to do it. i would have loved to have been a fly on the wall with the lunch between president obama and joe biden. >> roger stone, let me ask you, you know optics. the president had lunch with joe biden today. his press secretary said very nice stuff from the podium about him. is that kind of not quite an endorsement, but certainly not saying don't run? >> i would have liked to have been a fly on the wall with the meeting with senator warren. she stands between joe biden and a bid, she would be a much better candidate. but the last time joe biden ran for president, he got 1% in the iowa caucuses and had to drop out. >> roger stone, patty solis-doyle, thank you so much for being with me, despite what happened to both of your 401(k)s today. it was nice of you to give us the time. time for me to turn you over to wolf blitzer, who's in "the
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situation room." wolf? \s happening now, breaking news. stunning slide, the dow drops 1,000 points at the start of the day, climbs back, but plunges again. is china sending world markets into a tailspin? what does it mean for your money? terror on a train. three americans are honored for stopping a gunman and prevents a massacre. there are now new worries of sympathizers out there are getting ready, and they're eyeing some very soft targets. brink of war, the first time, tension leads the u.s. to break out the war plan. north korea launched a worrisome military buildup. why was the communist regime rocking out to a european heavy-metal band? and is joe biden jumping in? from a private lunch date to hints from a lectern, there are new indications that the vice president is