tv Bulls Bears FOX Business February 12, 2019 5:00pm-6:00pm EST
back up to almost 60. keeps you on your tees. -- keeps you on your toes. >> that's right. that's your job, keep me on my toes. >> i try. >> that does it for us. bulls & bears starts right now. david: breaking news lawmakers scrambling at the moment to cinch a border funding deal that the president can sign on to all to avoid a second government shutdown. texas congressman is here to weigh in on what's on the table right now. we are so glad you could join us. this is bulls & bears. joining me on the panel today. congressional leaders urging members of their parties to sign on to a deal reached in principle last night, but the president may be the toughest sell. take a look. >> i have to study it. i'm not happy about it. it is not doing the trick, but i'm adding things to it. i don't think you're going to
see a shutdown. i wouldn't want to go to it now. if you did have it, it would be the democrats fault. >> national emergency to build a wall? >> i consider everything. i'm considering everything. david: according to reports, in this agreement, the president is getting only about a quarter of the money he had been asking for to build a wall and more than a 17% reduction in i.c.e. beds, yes, beds, it seems incredible, but there you are. joining us now texas congressman who just returned from el paso where the president spoke last night. congressman, as we know, as we just heard, the president is not happy with what he sees in this bill. do you think he will sign it anyway? >> you know, he said he was hoping not to have a shutdown. i can understand, we don't want to put people out of work. we don't want to shut the government down, but i can tell you, that the american people are fed up with open borders, with being swamped by millions of illegal aliens, many of them
criminals. 237,000 arrests of criminal aliens in the interior of the country. this is insufficient. you know, 5.7 billion for 200 miles of wall is less than 1 tenth of 1 percent of a trillion dollars plus budget, and they are going to offer 1.375, cut down on the number of beds, basically they're partially defunding the i.c.e. -- david: if i could follow up, would you then recommend the president not sign this? >> i think the president has several options on the table. i think we know there's a dod option. we know there's a national emergency option. but congress holds the purse strings. the constitution says that we control the spending in this country. and where we spend our money it shows our priorities. as republicans, we're putting out a great plan. i'm backing the -- supporting the president with his 5.7
billion. and the democrats simply, they say they give lip service that they want to, you know, secure the border, and yet, they don't come up with the deeds to do it. i think it is high time to do something that we can, whatever it takes the president to do, we need to secure this border. >> congressman, you know, we have mitch mcconnell apparently telling richard shelby to get it done. now, getting it done, is this to sign this deal which as you said falls short because republicans are still trying to sell this on the hill? >> absolutely. i think this is a shortcoming. look, i don't know what -- i guess the wish on the part of mr. mcconnell is that it all go away. but this is not going to go away. this border is a -- the situation down there -- i'm also the co-chairman of the house border security caucus as well, and having -- i visited the
border four times in the last six weeks, and i can tell you, it is a crisis. there are people dying. there are communicable diseases coming across, a healthcare professional. this is a crisis by any measure. it is a crisis. it is costing the american people in deaths and loss of property and sickness and disease. our hospitals are overwhelmed. our schools are overwhelmed. and the border is being rushed by thousands and thousands of people that are invading our country. we have loopholes where we can have people that can just step one foot in and ask for asylum, we can't stop them. we have to turn them loose with our catch and release policies which are outrageous. the american people are ready to solve this problem, and i think the president is right to do this. he's unhappy about it. i can see why. we'll see what he does. >> congressman, this is john layfield here. i don't doubt anything of what you are saying. i grew up in the great state
myself, sir, and i understand the problems we have on the border. >> yeah. >> my question, sir, is why after two years is this fight now being picked? the republicans had the house and the senate, and for two years this talk was nonexistent. this happened once the democrats got the house. what have you guys been doing for the last two years? and why is mexico not paying for this? the president said mexico is going to pay for this, not through taxes, not through drug money, not through tariffs. i don't understand why the disconnect is here and why this crisis starts now. i don't doubt the problem you have, sir. i wonder what the republicans have been doing for two years and why mexico isn't paying. >> i agree with you 100%. i said it when i was down in southern arizona the other day, looking and talking to people, angel moms and dads who have lost members of their families to criminal aliens. the situation with border patrol and i.c.e., literally having their hands tied behind their backs, not having the resources or the manpower. i'm thinking -- i asked my own colleagues who were with me, why
in the world were we unable to get this done over the last two years? it is inexcusable. we should have done this. it was a top priority. i think it is the most pressing issue our country is facing today. i'm really -- i'm so thrilled about the economy that we have. we did some great things with tax, jobs. but this is what is looming out there to be the ruination of our great republic, being overwhelmed. it is inexcusable we didn't do that. we had many opportunities. i voted for every one of them. we were aun -- we were unable to do it. >> my name is christina. you alluded it being a top priority, but not much happened in the last two years. you mentioned the purse strings. how do you feel if the president went ahead with executive order to change the language so he could bypass congress and move money around? officially it is called transfer authority, so taking money,
let's say from defense, how do you feel if he were to do something like that? >> well, i can tell you this, it is a problem. and if the president can solve it where congress can't seem to get together and get its act together and pass the necessary legislation, closing loopholes and providing resources, boots on the ground and getting this horrible problem solved, then the president needs to do something. he's got a number of options at his fingertips, and like he tells our adversaries in his foreign policy, all options are on the table. i hope that the president will use whatever option it takes to secure this border because it is an enormous threat to our nation's survival, and let me just say this, i've been in congress for four years, i have said many many times that our broken immigration and refugee programs, open borders, the
democrats obvious intransigence this trying to fix the problem are the biggest threat that this country is facing. whatever the president needs to do, i'm going to support him, if we can get this border security. >> congressman, i want to back up and take a 10,000 foot perspective. i'm going to be as objective as possible. one, it looks like to me and most of the country trump lost the first shutdown deal. on this one, it looks like he's basically going to lose it because he's going to get crumbs for the wall. every day i hear something new from the left, whether it's the green deal or aoc's tweets or who is next running for president. my take is -- and again i'm being as objective as possible, the right has lost the narrative. i'm not hearing about how great the economy. all i'm hearing about is stuff on the left, or the left won. what is the mood in the house, in the senate, on the right
regarding that? regarding the next set of elections? >> well, i can tell you, i believe the american people are seeing the head rearing of this extreme radical democrat wing of their party. radical democrats are rolling out an agenda that is absolutely anti-american, socialist, open borders, diminishing our military, foreign policy that is absolutely weak. and i don't think americans are ready for this. they want to roll back our tax cuts and jobs act. i think the contrast between the two parties has never been more apparent. am i hear to give excuses for my party for not getting this immigration thing done for the last two years? absolutely, i'm frustrated and discouraged we didn't do that. but we have -- it is so obvious, so apparent that the democratic party and their extreme radical
wing are taking america -- want to take america in a direction that i think most americans are very fearful of. david: congressman, let me bring it back to the border, if i can. >> sure. david: we keep hearing from a lot of people in new york and california that border walls don't work, that they don't stop crime, that they don't stop immigrants from coming over. r on the other hand, we hear a lot of border patrol agents that are at the border saying the walls do work. i know you were just there. can you address that? you have these studies out there saying they haven't stopped crime in places like el paso, but you hear other studies from san diego saying indeed they have. what's the bottom line on that? >> the bottom line is that the democratic line that walls are immoral or ineffective simply doesn't wash. we know where the barriers were built was san diego, yuma arizona and el paso, crime has
dropped. we have seen as much as 95% decrease in illegal crossings, drugs and human trafficking have diminished. and i was in el paso yesterday with the president. i can tell you we were being told by many democrats and reporters that the wall was not really all that effective and didn't have that much difference in el paso, the difference between juarez mexico and right across the river, el paso, i would ask this question of the democrats, if that area is so safe, why does the mayor of juarez mexico and chief of police live in el paso? that's the way it is. walls do work. they are not immoral. they are absolutely essential so we can have barrier protection to stop the huge drain on our treasury -- >> congressman, i'm going to interrupt. you have mentioned this wall. but i haven't heard anything really about changing, reforming immigration, putting it all on the left. you have them living in el paso.
you gave that example because maybe everybody wants to live the american dream and the economy, but i feel like there could be more talk around the actual immigration plan that's in the united states to improve the entrance of new people, quality people to fulfill the 7.3 million job openings that we have just announced today. >> there's no question that the american dream is a huge enticement for people all around the world. we're the beacon of hope and freedom and liberty around the world. and so it's -- it's no wonder that people want to come into the united states. but we are a nation of laws. we cannot have our border rushed by invaders from other countries that want to come in. many want to get on our generous welfare system and simply just get into america and utilize our generous services. we have to have people that are going to be assimilated into the american dream that love america, that want to come in, become americans, that don't burn our flags and fly their
former nation's flag if it was so great, then why do you want to leave? so i can tell you, that it is a situation where americans absolutely have to have secure borders, and whatever our president, whatever it takes, the congress needs to -- if they refuse to act, and again, i'm not trying to make excuses for the last two years, but we were unable to do that, but we absolutely have to have secure borders. david: congressman, great to have you here. please come back and see us again. appreciate it. >> thank you, david. david: thank you very much. we were talking about the green new deal. the president bashing that deal last night. how many democrat lawmakers actually support it? we may have that answer soon enough. >> so called green new deal, it sounds like a high school term paper that got a low mark.
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>> i have noted with great interest the green new deal. and we're going to be voting on that in the senate, will give everybody an opportunity to go on record and see how they feel about the green new deal. david: senate majority leader mitch mcconnell throwing down the gauntlet on the green new deal. every senator will now have to go on the record. seems like he was reading the "wall street journal" editorial page today because they urge members of congress to do exactly that. joining us now from the "wall street journal" editorial page. it looks like mcconnell took your advice, what do republicans gain from getting democrats on the record about this? >> so the green new deal is an extraordinarily radical program. this is a government takeover of
huge swaths of the economy. it is about as far left as you can get. i think it is important to know, for voters in particular, whether or not their representatives support something quite that radical. >> jillian, it is gary smith here. my question is this, i think it's smart that mcconnell's going to raise this as an issue and put it out there. i'm going to give you the other perspective though, if i was on the left, i agree with everything that you said, it is a lot of government overreach, it is unaffordable, probably not what americans want, but how did they combat with what i'm sure the left will come back with is this is just -- it is not a blueprint. it is set of aspirations, if you will, and at least -- this is the left saying -- at least we're thinking about the future. we're thinking about the future for our grandchildren. how do they combat that because that's the take i would bring up. >> yeah, well, i don't think this is a particularly moderate plan in any way.
it is not a long-term plan. it is looking at doing something radical and immediate. i mean, if you look at the clean power plan even, this goes much further than that. so i definitely don't think that this is a temporary or long-term sort of viewpoint. i think also if you look at what they are proposing, i mean, it is sweeping. they are talking about getting rid of air travel. they are talking about new building upgrades for every building in america. this is something that's going to affect certainly businesses, but i also think we have to look at the effect of renewable energy and how expensive it is on poor people. this is something that's going to drive up energy bills for everyone. >> it's funny because this is essentially a litmus test, based off of the editorial page, a litmus test to see who is going to vote for this, who is going to show that they truly are progressive. i feel like socialism is really now become something on the forefront. do you feel that we need to take this seriously, the radical left, maybe it's not so radical
and fringe anymore considering especially the younger demographic that is entering the voting sphere? >> yeah, i think it's interesting that socialism isn't really a dirty word anymore. >> exactly >> the same way it was four, six years ago. >> yeah. >> but again, i think it is important for progressives to go on the record about this because i'm concerned about the effect on the poor. i remember being just out of college and sharing an apartment with two girls who were earning minimum wage, and we would actually like dabble over whether we turn on the air-conditioning or not. i remember sitting -- because that is expensive. they are talking about a social justice agenda -- >> they are also talking about taxes too. wouldn't that say hey we're supporting the lower and middle income family as well. >> they are talking literally about trillions of dollars. >> i did the math. they have said it is going to cost over 40 trillion dollars over the next ten years. >> yeah. >> think about it, the entire
budget for the u.s. is 4 trillion dollars, that's medicare, social security, etc., defense, you name it; right? have they done the math and figured out changing the entire power grid in the u.s. and how much it will cost? that bill will be paid by taxes eventually. >> if you look at ocasio cortez's statement, if every billionaire went in on this and every business went in on this, even that wouldn't be enough. i think it's important to be honest with voters and taxpay s taxpayers. this is not something that the 1% can pay for. this is something that everyone will pay for. it is a takeover, enormous part of our economy. >> enormous. >> from the tax haven, for those that are watching out there in the irs, i pay full u.s. taxes, so it is not working out very well for me. i want to ask you about taxes. bill gates was recently on a pod cast. this is what he had to say. >> i've heard about it a lot over the past few weeks now.
maybe we should just tax folks like you, 70% marginal tax rate and that that money should be used to build infrastructure and services like this. does that appeal to you? do you think that's just ridiculous? do you think what you are doing on sort of the private fi -- private philanthropy end is more effective? >> you should look at the irs statistics, 20% rate. it is a misfocus if you focus on that, you are missing the picture. >> what bill gates was saying that when you are trying tax income from the super rich they have ways of sheltering income. his idea was to tax assets more importantly. this wealth inequality that's happening right now, the push to tax the wealthy seems to be gaining steam, and there's really nobody out there who is going to defend the wealthy. it is not something that people tend -- it is not a hill people die on. where does this go from here with this tax? are people going to have their
assets taxed? the upper income taxed? where do you think this leads? >> it is being marketed as tax the rich. any time you are talking something where it's in the multiple trillions, we are talking about a middle class tax increase. we're talking about an increased burden on low income people. i think it is really disingenuous to puch it that -- to pitch it that way. it is a great talking point but the math doesn't work out. david: even if you are looking at green policies, part of the green deal were these supertrains, high speed supertrains that were going to replace planes ten years from now, in fact, governor newsom from california just announced that he is canning this 77 billion dollars high speed rail that they had for california because it was -- it cost too much. so the bottom line is i'm for what works. the high speed rail doesn't work. a lot of the things in this green deal don't work. isn't that the best way to combat it? >> yeah, absolutely. you can look at the germany precedent here. i think they tried something that's not quite this radical,
but it's similar. it's hurt their energy stability. it's hurt the stability of their grid. and they've ended up falling back on coal. so if you look at the united states, we've got this great natural gas portfolio. that's a cleaner form of energy, and you've seen emissions go down significantly since 2005. so i think that works pretty well. david: jillian congratulations for having a plan, a blueprint that is now being followed by the people inside the beltway. thank you for joining us. >> thank you. david: new york governor democrat andrew cuomo meeting with the president at the white house this afternoon. we will tell you what he's asking for and whether or not he's likely to get it. i hear it in the background and she's watching too, saying
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open to talking about changing the provision, but i don't want him to. i want governor cuomo to sweat so maybe eventually he will have to lower our taxes. >> it is not going to happen because the republicans in the senate have already drawn the line and said it's not going to happen. and let's be honest, a rarity in politics, andrew cuomo knows that this trip to the white house is just theatrics. he's doing this to nullify his big contributors that live in the mansions and pay the property taxes but the fact is the president won't do this because his party won't let him. this unlimited deduction for state and local taxes was virtually a subsidy for the spend spend-aholic democrats. well, the party is over. >> betsy, this is john layfield. this seems insane to me. this is a giveback to the 1%.
it is coming from a democratic governor who may be running for president. the world's in a paradox universe right now. it certainly appears. >> you have a good nose for hypocrisy. that's exactly what it is. the democratic party doesn't know what it is right now. we've got aoc and elizabeth warren saying we want more equality. we want social justy. and -- social justice and then we have a congresswoman and governor cuomo begging to restore this tax break which only hopes the very rich. >> isn't this just the free market working? people are going to a state that's fully funded as far as schools and police, no state income tax, isn't this the free market movement though that people are trying to mitigate? >> clearly people are losing new york state in droves. new york lost more residents than any other state in the nation because it is tax hell. >> well, okay, the point was, yes, you know, the state and
local taxes may have been capped, but i think originally in the tax plan under trump he wanted to extend capital gains and basically you could, you know, the alternative minimum tax was also talked about as well. he wanted to make it more, shall we say, equitable for those that are the high earners. >> well, the fact is -- >> but he couldn't get it through. that's the problem. >> the final tax plan is more what we call progressive, harder on the rich. most of the breaks went to people lower down on the spectrum. so there is something hypocritical as was just pointed out about these democrats going with their tin cup in hand to get these tax breaks back for the rich. >> right, because they could have had it originally, and they didn't want to pass it. whose fault is it at the end of the day? >> yeah, i think you were right when you were saying he's going there pretty much showing that he's making a big deal. >> this is nothing more. >> for the other side to provide context, some might say hey but those who make $500,000 or more
saw their tax rate drop to 37% which definitely would offset the reduction in the salt that we're see right now. >> it's 631 billion. if you remove the cap, you'd lose 631 billion dollars, and taxpayers all over the country, david, would have to make up for that. and i refuse. [laughter] >> emphatic. [laughter] >> yeah, but let me give you the flip side, betsy. is there any indication that the salt and kind of the cancellation of the allowing the mortgage interest deduction is actually hurting the economy. i mean, it is the rich that are spending a lot. i have noticed in the high end housing market, per the mortgage interest, i think it is hurting there too. i understand your arguments about not wanting to tilt towards the rich. i'm worried it is the rich that are spending the money. and i'm worried that the overall economic impact is negative.
>> i don't think that it's having an impact on investment in plant and equipment, for example. but let me point out that, that it is having something of an impact on housing prices in communities like greenwich, connecticut, because that additional after-tax burden now paying those huge property taxes, with after-tax dollars is just costing many many people more money, and they are moving to florida and other places instead. >> betsy, you were former lieutenant governor of new york. >> i confess. >> you know that andy cuomo right now is looking at the numbers. he's faced with a budget that is about to explode because a lot of the rich -- >> [inaudible]. >> and even cuomo himself who has never been a friend of the wealthy in any way is now saying we need the wealthy. we want the wealthy people because he knows they pay the most -- >> he's talking out of one side of his mouth and in the next
speech he will support aoc and saying the democratic party helps the little guy. don't be bamboozled. david: in other words we're going to go bust. >> the answer is not to make these taxes deductible. it is to lower the taxes and control the spending. that was the original -- david: betsy, thank you very much for being here. >> do you find there are more new yorkers moving to bermuda? >> not bermuda because they have a consumption tax here so it makes up for a lack of income tax, not like florida or texas. david: keep it local, florida and texas. could the president be changing his tone on an up coming tariff deadline with china? what he said that had markets soaring today. all money managers might seem the same, but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions
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done, i could see myself letting that slide for a little while. david: stocks soaring on those comments from president trump earlier today easing up a little on china, suggesting that the march 1st deadline for increasing tariffs may be postponed if the negotiations are going well. stocks thought this was a good sign for trade talks. so is it? >> that's exactly what investors thought today. i was at the new york stock exchange all day and nobody was talking about the shutdown. they were talking about the possibility of president trump, you know, putting a pause on these tariff increases, and they were very excited about that, which is why many tried to get in today because they believe he will make a comment about it on thursday or friday. later on this week, saying that this is going to be pushback. if you look at other companies, the parent company of gucci, released their earnings saying that the strength in the chinese consumer is still there. starbucks saying that they are going long china because they really do see some value in the market over there. so yes, we talked about the economy, but seems like people still believe that things can work out >> that's offset, though, by
apple saying that iphone sales fell some 20% in the previous quarter. but i say, you know, what's a deal look like? what does a china u.s. deal look like? well it is what president trump says it looks like, at this point, when he's introducing wiggle room, i think that's pretty much saying we will go past the march 1st deadline with more time to negotiate. i think that's positive for the markets. >> yeah, i think the market wants to go up here. we have had great corporate earnings. earnings came around 19% growth. they were supposed to come in at 7.8% growth so far this quarter. that's over double what was projected because of the slowdown that was projected which is not happening yet. we have full employment. we have wage growth. we have a lot of great things going on in this economy. i think this market wants to go up. they just want any deal. i don't think president trump is going to get what he wants. if you take, for example, what tesla got in china, where they got ownership of the company, that deals a lot with intellectual property theft. china is not going to admit that they are stealing intellectual property but you can get around that by dealing with company
ownership. the president may get a deal he will be able to sign off on. i think he's going to postpone it, though, march 1st, that's good for the market. >> first of all i agree with you, john, that it seems that the market wants to go up. my concern is that it's been almost straight up over what 15% now straight up since the end of 2018. but the fact is if you like the market, you should be buying regardless of what happens to the china deal, as we've discussed on this show, in the past, even if every single dollar is collected of the new taxes, the new tariffs, the amount, the effect on the combined gdps is .02%. we're going to look back a year from now and not see any effect, if there's a trade deal or there's not a trade deal. we're not going to solve the intellectual property area as john illudes to, so i think -- my point is whether this happens or it doesn't happen, if you're
bullish on the market, buy, and if you don't like the market, stay out. but don't base what you're going to do on what happens with china. >> unless you're a short-term investor. i think you are spot on, gary, because i did speak to a lot of guys today who were talking about that. you take brexit and china out of the mix, the only major concern going forward is there going to be a continued global growth and how will that affect the u.s.? another interesting point bank of america merrill lynch published a report stating there's so much cash on hand. one trader told me watch, people will read the headlines, get into the market, all the people with cash on the side lines will take that cash because they will feel like they are missing out and they are going to further add into the markets so we should a rally in the coming weeks or months. this is all hyperbole. david: despite what you say about gucci, there are a lot of companies that are noting a significant slowdown in china. and -- >> apple, caterpillar -- david: exactly, i would just
wonder if that's going to turn around with this deal. a lot of their slowdown is not only internal, stuff that they've been doing wrong, like the government taking over more private companies, but also europe. europe is not buying as much. we have become sort of the sole buyer. so is china going to pull out of this even if we get a deal? >> pull out of the deal? david: no, pull out of the slowdown that they are in middle of. >> i think it is probably one lever, but they have internal problems of their own. i mean, they are overly leveraged to the max. i mean 260, 280 percent of gdp, and, yes, a lot of that is internal domestic debt. that's the good news, but having to spend money out of it is going to be tough. david: we have to move on. whole foods reversing course on pricing. is amazon losing the battle to make whole foods more affordable? this isn't just any moving day.
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david: is whole paycheck making a comeback? remember that title for whole foods? it was bought by amazon two years ago. it announced it is going to be raising prices again, saying, quote, like all grocers, whole foods has experienced increased costs from suppliers due to materials, labor and transportation. now, we've absorbed much of the inflation, many prices have also decreased, and we continue to expand a number of promotions we
offer to give our customers better value. so gang, despite all these promises, is amazon losing the battle to make whole foods more affordable? >> well, david, i don't -- probably too soon to tell. i can tell you this, i have a lot of background in the supermarket area, and it is a brutal business. i grew up with companies like food fare that are long gone, amp, acme, even juggernauts like food lion ran into problems. here's the reason why, the supermarket grocery area is a very complex yet very low margin business. you just can't go in and science it out and automatically because you have great metrics reduce prices. the margins are already low. i don't know if amazon can do it because they are smart in one area doesn't mean you are going
to be smart in the supermarket area. there are a lot of competitors that have come up against the krogers and some others of the world that have fallen because they think they were smarter. i'm not sure they can solve it. i'm not sure solving whole foods making them into a different company is the right way to go anyway. >> i agree with you on that. i think the margin issue is something that that amazon shareholders which i'm one of them always thought would happen. i bought wal-mart a few years ago when they made an acquisition and they got the ceo to come on board. if wal-mart wants to compete with amazon, they have distribution centers all over north america. amazon is buying distribution centers not just supermarkets so they can have same day delivery. this is much more important to amazon as a distribution -- just as important as it is a supermarket. i think they are doing fine in north america. this is a blip.
>> the company released a statement. in the statement they said yes it has to do inflation contracts expiring but they alluded to other discounts. that's an avenue we should talk about. those discounts primarily concern prime members. when you continue to give prime members discounts, it can encourage more people who walk into whole foods to get a prime membership. you don't want to feel left out. i don't have a prime membership. i go in and i'm like darn i can't get the 10% off the avocados again this week. i don't go very often because i find it expensive. i think this is an opportunity for them to improve their margins because whole foods was expensive before amazon came in and gather more prime members. >> you like avocados? [laughter] >> you are so stereotyping, the millennial on the panel. >> i have never met anybody who likes avocados. it is something new to me. >> what? david: have you never had guacamole? we should have begun this segment with this. i didn't know there was any controversy there at all.
go ahead. >> the next would be does this help other grocers? what does that mean for wal-mart which by the way attracts a lot of foot traffic into their stores because of groceries. that's the point. they actually don't make that much money off their groceries but if they are in the store, maybe they will pick something else up in the aisles. david: my problem is service, the founder of whole foods, a big libertarian by the way, he gave a lot of incentives to the workers to do the most efficient job they did. we used to love going in there because the service was so great. that's fallen by the wayside now. >> exactly. david: i think if they brought -- you are the expert on this, gary, if they brought john mackey back in to remanage the employees, maybe that would help, what do you think? >> absolutely. look, when you change the focus -- people didn't go to whole foods to get lower prices. they knew the prices were going to be higher. they went there for getting things that you could not get elsewhere, and as you point out,
the service. when you go in there and try to compete with the krogers and the safeways of the world, now you're playing their game. and that's not whole foods game, and it's a mistake, i think, if amazon goes that route. david: all right. let's hope they hire john mackey back again. thank, gang. more americans are behind on their car payments than ever before. how this could affect the economy and the markets. that's coming next. woman: friction points, those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. but by going out in the field, and meeting management, suppliers, competitors. in the end, it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers.
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>> i think it's a red flag. we have a lot of red flags. we have a student loan debt bomb that's going to explode in the near future. we have brexit, we have a trade war, and we have a very good economy that was growing at 3% which was not predicted. that's what's so hard about handicapping the market. >> the best indicator today that i saw was the gallup poll that shows the confidence in personal finances in the u.s. people expect their personal finances to be better 12 months from now. there is a tight labor market taking place with more jobs available than there are people who can work. >> the stats for this survey
showed the folks not paying the car loans are usually under the age of 30 and also have student loans. the younger people who can't afford their student loans and can't afford their car payments, and it will come back to us. >> people who are overly confident are whistling past the graveyard. there is another survey out that says people have more credit card debt than they have emergency savings. so any blip in their own personal economy is a disastern and this car loan data is one more straw on the camel's back which i pray does not break. david: i think at any time in an economy you can point out the details and say this is terrible, this is terrible. but if the economy is growing, if you have a growing economy it
fixes all sorts of problems. once the economy begins to slow up any one individual problem could sink the ship. gang, thank you very much. this show was okay. that does it for "bulls and bears." >> i'm not happy about it. it's not doing the trick. but i'm adding things to it. i'll add whatever i have to add. it's all going to happen where we are going to build a beautiful big strong wall that won't let criminals and traffickers and drug dealers and drugs into our country. >> we are urging the president to sign it. the president should not make the same mistake he made a couple months ago when there was a bipartisan agreement and he wouldn't sign it. >> the president will never sign a bill to reduce bed space for violent offenders. you