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tv   Cavuto Coast to Coast  FOX Business  June 7, 2024 12:00pm-1:00pm EDT

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brickley asked what color are sunsets on mars? the choices are red, green, blue, and yellow. i will say red because mars is the red planet. what have you got? ashley: i thought was a trick question, there's no sunset on mars but i will go with number 4, yellow. stuart: a trick question possibly? lauren: you said i can't pick red. the answer is blue. totally not blue. it's brown. stuart: at all has to do with the light spectrum and what particles are in the atmosphere, the atmosphere on mars is filled with fine dust. the way refracts light makes the sunset appear blue. now i know. i thought it was a trick question. great week. thanks for everything. coast-to-coast starts now. ashley: roaring kitty speaks.
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a roaring market kind of shrugs recovering both. perfectly, come on. what did you think of that connection. cat got your tongue here? okay. i'm neil cavuto. that's it, no more analogies like that. one is considered a poster child for the fraud people market and the other unemployment market there could be testing the ball market, we screened, you decide. what is each say about the other. to bull's-eye american ingenuity funds adam johnson, gary, first off, the war on kitty is streaming right now but for much of this hour, it is the first time in three years he has done so. last time, it just ignited a wave of interest. what about now? >> i can't tell you how much
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this irritates me, i worry about the investors and traders that don't learn any lesson and the lesson is when the music stops and this dies down, the stocks go back to where they come from, millions of dollars lost and overnight the company diluted their shares 25% and lowered their numbers and people warned me after hours for being crushed. the last time the stock dropped 90%, amazingly they are going after amc which only dropped 99%, the emotion of greed continues to stand out and it is just amazing to watch. i don't care what you have to say. it goes by the wayside because it should be evident, all he's doing is using his followers to make himself flush with a lot of money at he's done a good
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job the last couple weeks. ashley: someone is a fuddy-duddy. i'm looking at this. don't know if morgan stanley's e*trade unit has taken him off that site but there were reports that obviously this guy has a big effect on the markets, was -- might appear reagan good, no such truth to the accusations thus far but they could fall back as of this hour they've not done yet. what do you make of the whole phenomenon bringing up the whole meme thing all over again? >> as far as a brokerage firm saying they want him off the platform that's because they don't want to be found liable should he be found to be manipulated. 's human ability to? he's talking his book which is what i do when i say i like this stock because he's doing nothing more than that but this whole crazy meme thing takes on
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a whole different color and gary and i are absolutely on the same page. i wouldn't touch any of these, this is not responsible investing as we learned from the non-earnings report with game stock, revenues down 30%, they don't have any profits, no fundamental reason to own a business. not even a good business. who actually walks into a store and buys computer stuff? you don't need them fundamentally. ashley: the last go around, that was part of the problem, traditional type of businesses, game stop to your point that had enormous short position and guys like gail that came along to counter that and a lot of big hedge funds and others who were big shorting behemoths saying enough. it has been treated, don't know if this is an accurate description as david and goliath, that guy is the david and you represent the goliaths?
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>> i represent all investors and traders, to protect capital at all costs when things are swirling around them and the biggest money is lost when people get crazy after big moves. i watched last night on twitter which is now x people popping the champagne corks because this guy decided to do live stream where the stock went from 35 to 64 last night and people are buying in the aftermarket and already down 40% to 45% is we go to the live stream. based on the fundamentals, that is what is most important when all is said and done in the music stops, this is a lot lower from here. i don't know if whatever his name is can pull a rabbit out of his hat to save the day. i urge i'll investors the three words i talk about in my radio show, pick your poison and you
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better know your poison. fundamentals count in the long run. in the short run, i thousand today for all i know. all i know, when the music stops, it's going back to where it came from. ashley: neil: as you pointed out, it's a free market and there are momentum traders and some who don't go back to fundamentals but run up something or run down something or stocks tank, they are free to do that. it is when you manipulate it to the point but some firms fear that that's a jump off for some people but we always get back to fundamentals but you could say the same now that fundamentals support what's going on in technology as you and i discussed, you could make a credible case that it's very different from the internet boom in the 90s or 2000s where
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there were a lot of companies doubling and tripling that didn't make so much as a penny, different in this environment but your thoughts on that. >> we talk about nvidia every day. trades around 35 times earnings, give me some context, the s&p trades around 21 times earnings so nvidia is worth forward earnings but nvidia is growing earning somewhere from 75 to 100% on a forward basis based on estimates so i should be willing to pay 35 times earnings of the company is 90%. microsoft -- neil: game stop has been halted by now. it's obviously very volatile. market conditions usually do that but you are not saying what's going on with stocks like that and nvidia are night
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and day. making the comparison, that's not what's going on now. >> no. my point is i can look at nvidia and make a strong fundamental case, they're making a chip that's faster than any other chip in the world by multiple times. it's more efficient chip that uses less electricity, it's the heart and soul of artificial intelligence, one of the biggest memes we've seen in a long time. there are fundamental reasons and looking at valuation and get comfortable with the valuation. on game stop there's no valuation, no earnings, sales are falling. look at amc theaters, i took a look at it. i was curious, is there fundamental backstop and i realized they don't own the real estate there theaters are. they just went to real estate a couple hours at a time so there's no fundamental backstop, no reason to own amc
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or game stop whereas you look at a company like nvidia and its. it, we focus on trying to find legitimate companies doing the right thing like responsible management, that's not the case with the memes. game stop has been halted and it should be halted, you couldn't pay me to do that. julie: guys are so boring. a lot of talk with smart guys looking at the bigger picture. see what happens. i want to pick your brain momentarily. in the meantime, picking through a jobs report that looks pretty strong, there are some wrinkles. edward lawrence, an expert at this, where they are doing the same. >> the president in normandy and paris or in france, he released a statement saying the great american comeback continues, that statement goes on to say i'm fighting corporate greed and calling on corporations with record
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profits to lower prices as target and walmart have for grocery prices, i'm fighting to make rent more affordable, building more homes. he says there's more work to be done. the president has been making this point for 2 and a half years, the jobs report surprised everyone. this chart shows the federal reserve, more people spending more, average hourly wages, 4.1% year-over-year, pointing afresh on inflation. the fed chairman says this environment is not consistent with the 2% inflation target. >> i'm not concerned about that at all. inflation has been moderating and you're never going to hear me say more wages in workers pockets a bad thing. what we have seen under president biden, the way to build a strong economy is make sure workers do well. >> reporter: the acting labor secretary, when you look at jobs in may, healthcare sector
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relies heavily on government money, government creating get 43,000 jobs a day, the second largest sector for job creation. that means tax money created 43,000 government jobs per month over the last three months. >> government has been propping things up with the massive amount of government spending increasing deficit and debt. inflation is going to continue to stay higher. >> reporter: the federal reserve members i spoke with in this environment see rates being higher longer staying where they are, no rate cuts anytime soon. diane: love talking to karl rove, don't know if you saw him yesterday on fox news looking back at dj. he proved he has as big a hard
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as he has a huge brain, outstanding in that perspective. i was thinking about your appearance on fox talking about sacrifice. we have slipped from the. i don't blame politicians or to point fingers but arguing over a lot of things, we had a mission 80 years ago and we wandered from that mission and our response to it. >> we were in a moment of grave crisis for the world, fighting on three front against nazism in europe, italy with mussolini and in the pacific with the japanese. i will say this. i wrote a piece of the wall street journal based on a speech i gave last summer in which i reminded people vote we
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have been here before. our politics have been broken before and we have recovered from them in the 60s and 70s when the country was divided over the question of race, an unpopular war in southeast asia, we were deeply divided is a country in the 1930s. the golden age, politics make today look like we are sitting around the fire doing marshmallows together. we've been here before. we've got to have confidence that the american people newly and better their political leaders and get it and i think the moment is here and coming. may not happen in this president election with two candidates who are deeply unpopular with the majority of americans but political figures are starting get the message they are needing to do better. >> part of the greatest generation, my dad used to tell me, talking over him, never quite heard the do more part. in all seriousness one of the messages you get from that
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generation could apply to the way you react to wall street or strong up on craziness or political developments, step back, step back. there's not a lot of stepping back going on right now. a lot of firing up. no right or wrong answer on this but i am wondering, the greatest generation, we share their dna. it's not as if it is not in us to be and do better. >> reporter: we are americans. those teenagers who assaulted those beaches on june 6, 1944, were typical americans and we are all typical americans, the wretched refuse, discards of the world who came here and given an opportunity to dream big, work hard and achieve what we wanted to. it is in our dna. we need to dwell on it. last night i had a young member of congress in my living room talking about the greatest generation, august pflueger, who himself is a veteran and
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this, his message to the people in this room was we understand you want us to work together. is part of a group called for our country, veterans, democrats and republicans who agreed to meet on a regular basis and try to find at least one thing a year they can do to together and they realize that is a start but they understand they need to start because they don't want us to be needlessly divided and at each other's throats which i commend him for having that spirit. ashley: i enjoy our political discussions. that stopped me in my tracks. great seeing you again. one of the reminders carl touched on on the focus we had 80 years ago, the focus on still another character who is trying to do in a different way what mussolini and hitler and
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others are doing, it's happening in ukraine with vladimir putin. more aid coming, the president promised it. let's just say bickering over that is far from resolved after this. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts.
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her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. the stock market does. in fact, most people don't find them all that exciting.
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>> president biden: i apologize for the weeks of not knowing what would happen in terms of funding. we had trouble getting the bill we had to pass through some of our very conservative members who were holding it up but we got it done finally. neil: the president a moaning the aid package ukraine is finally getting, blaming republicans for the fact that it was delayed, the back-and-forth on this, in a foreign country, don't know if that's cutting edge. doesn't with my next guest, jodi arrington. house budget committee chair, house ways and means committee memory, important figure there. people come down on this but i didn't think that was appropriate of a sitting us president talking to the leader of another country about our
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political problems that might or might not come it didn't seem the place to do it. >> i agree. it is a continual posture of weakness to our adversaries and allies who are counting on us. it was unnecessary in my other comment which would no doubt sound political but it is substantive and a real concern. should apologize to the american people for not putting the resources and attention to the invasion at the southern border ran not just invasion of ukraine by our common enemy russia and maybe even to our children because we didn't pay for it and they will inherit the whirlwind of a $35 trillion national debt and the other one, if we are going to do these things, and i think there's a security interest for
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our country to support ukraine in the right way we know end game. we can't have endless drawdowns and a lot of discretion to this precedent when we don't even know the desired goals of where we can find a peace agreement and that is critical to being responsible as stewards of america's interest. neil: a lot to talk about to the border but maybe the president, continue to give more aid, more aid is coming, we've given you more than any nato country and all the other countries combined and leave it at that but we dipped into areas that maybe weren't wise. the president did make clear not only today but yesterday, that ukraine is dealing with what soldiers were dealing with all those years ago and russia
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is the new totalitarian state that wants to revisit what happened 80 years ago. what did you make of that? >> it is true, we should unite as an alliance of freedom loving countries against tyranny, those alliances are important, the world is getting more dangerous. we can't go it alone. we need europe to take ownership as we provide support to ukraine so i think there were positive things to his speech, he referenced, he quoted ronald reagan, so that is all good. i think there's a lot of discretionary moneys in the ukraine package. for reasons i mentioned earlier and reasons i'm going to tell
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you in a minute, i didn't support it. i think there's also questions about the competency post afghanistan on decisions that are being made when you get discretion to this particular commander-in-chief number one. number 2, i feel there's a hyperpartisanship in the decision model of the white house whether it is the recent executive order on the border or student loan forgiveness that will cost another trillion dollars to taxpayers in the future, our children, and even saying here, ukraine, here's some more weapons, ammunition to be aggressive in defense of your sovereign country but withholding from israel munitions and weapons and putting prohibitions on them defending themselves against the attacks of terrorists. i have concerns about competency and hyper political
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nature of decision-making. lauren: you speak your mind, that's a texas thing i understand. thank you very much. lucas tomlinson is following other developments, hunter biden, the court case continues, the prosecution is done. >> the defense is called its first witnesses, two gentlemen where the gun store where hunter bought the handgun at the center of this trial but the most important thing moments ago. naomi biden, hunter's eldest daughter took the stand to testify in 2018 when hunter bought the handgun, the cleanest and clearest he had ever been, the prosecution saying it's different. roll the tape. earlier we saw naomi and james biden, the president's brother both entering the courthouse here. we also heard from da witness,
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here's james biden walking the courthouse this morning, he is expected to testify as well. whether or not hunter was on drugs at the time he made the purchase of that 38 caliber roof are for, has been testimony according to prosecution that he was on drugs, coming through hunter's text messages as proof and earlier the defense called two men from the gun store, jason turner ran the background check, the owner of the gun shop, try to poke holes in the case to say hunter filled out. it is not clear if hunter biden who flew to normandy witnessed the testimony, she's back on a plane and fly back to europe. whether hunter takes the stand
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is no evidence of that. one interesting stat according to pew research report the odds are not in hunter's favor. only 1% of federal criminal defendants have been acquitted. they didn't have a president for a father but we heard president biden say he has no plans to pardon his son. neil: guy who's influential in meme stocks getting the process going, when it comes to game stop, they not done much, the stock is getting clobbered today after a big run up yesterday that late in the day, bottom line, he's enormously influential in this arena but for shareholders and a lot of meme stocks, it's more like he calls himself a roaring kitty but more out, losing money after this.
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[thunder rumbles] ♪ ♪ ♪ ♪
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the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ stuart: game starters halted right now. this is not a large picture but we are getting roaring kitty extreme for the first time in
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30 years he's done so. he did announce yesterday he had a $382 million position in game stock and i believe that extended to some colleagues, bottom line we are watching closely as kelly o'grady has the latest on what this screen might be telling us. lydia: the quote that stuck out for me is no real game plan here, just popping on and i can tell you as a viewer who was awaiting the live stream, that's an apt description. 25 minutes late. comments on the live stream are pretty brutal of saying this is a hoax, i will sell my shares and everyone was wondering is this a hoax or was he just fashionably late? 12:25 he came on, had a disclaimer that amounted to invest at your own risk. we got to see roaring kitty, a
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bandage get up, this is all for show. his hair is longer than it was, very happy vibes but 615,000 people watching now, ticked up to 615,000 and he hasn't given us a little bit more than that. he's warming up the scene. he doesn't have a game plan. right now he seems to be warming up. i don't have anything more for use on that but i'm watching out of the corner of my eye encase anything pops. he's tracking the stock, it looks like, as he's talking, even asking am i even allowed to say what's going on with the stock, the regulators are investigating him but it feels like roaring kitty just popped on right now and is giving his followers the hope, the boom they were looking for.
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ashley: i'm sure he'd is aware there looking at him and investigating him. i don't want to misstate what you said but putting it out there, be careful and all that, don't blame or credit me one way or the other but he knows he is a force. >> reporter: it was interesting when he first posted the live stream yesterday that he was going to do this at 12 p.m. today, all of a certain of yours later updated with his very long disclaimer to your point that invest at your own risk, these are recommendations which i'm not telling you to buy or sell. i'm not guaranteeing there's going to be a profit or loss here but i can tell you he just poured beer on the live stream, seems to be it is 5:00 somewhere. it is friday. to your point, i think he's being very careful because he doesn't know that the regulators are watching along
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with you and me. ashley: thank you for helping us out on this. with adam johnson, we are not going to talk about roaring kitty, we are going to talk about roaring nvidia. in video. after close today, it splits 10 to 1, stock trades in and out of $1200 a share, get shareholders ten shares for each share if it maintains this, stock splits are dicey or anything like that, down $3 trillion market so adam johnson, does it make a difference to you when split becomes reality? >> doesn't make a difference to me but it does to a lot of investors, a few of my subscribers emailed me this morning and asked if they should buy it today or wait until monday.
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probably today because it will be one tenth the price. doesn't change the valuation because they are issuing more shares which is why they cut the price down so valuation is the same but it is psychologically easier for people to think about buying a $120 stock. neil: what about you? gary:i would rather not have big stocks looks like this. it ends up trading differently. the big story here, there's going to be 25 billion shares outstanding on a company aware a lot of s&p companies aren't even worth $25 billion. what an amazing story, what great wealth creation. let's hope it continues. it's my number one stock position. when you have 200% sales growth over three or four quarters in a row and 400% earnings growth, you earn your keep and again, it helps the smaller investor, they feel they can buy more
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shares but doesn't change the market dynamic one shred. neil: doesn't have the allure that it used to but you can argue that it increases demand for the stock because it's not a $1,200 stock but one hundred dollars stock, that in and of itself could be. for your stock. >> it could be and that could be why it's trading up the past couple weeks since that announcement. what's fascinating, bank of america look to what happened to stocks after stock splits and they found on average stocks that do a split of at least 5 to one or more and this is 10 to 1, those stocks tend to rally an average of 25% over the subsequent 12 months as opposed 12% for the rest of the market. in other words it was fascinating. it really does speak to the
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point that you bring in marginal buyers, people sake, sure, i can buy $120 stock, there's something to it but as i think you probably realize from gary and i, we are approaching this as fundamental investors looking at earnings growth, sales growth, margins etc. . the price of the stock doesn't mean as much as what's happening inside the company. neil: people get greedy when things are going, the technology going? >> the percentage of technology versus the market is in record territory even out doing the late 90s. that doesn't mean it doesn't keep going. what you have right now, i don't think you can underestimate it, there's a bunch of companies that are just, category killers, that are just doing amazing things.
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amazon with $650 billion revenue. we know about apple and their ecosystem and now i have been trying to study ai, what it is about, i'm 10% on the way, great things are going on with these companies that are just dominating forces and it's tough to get those businesses to compete and they keep growing and growing and growing. eventually they will hit a wall but i don't think we are there yet. we are closer, just an amazing story at an amazing time, great productivity gains by great companies run by great people. neil: have a safe weekend, good weekend, profitable weekend, that takes effect after the close of trading today. we are keeping an eye on the pricing thing in the big apple, the governor saying it's going away. tolls a lot of folks were worried about, with something else. new tax.
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last four years, student debt, president biden has a laminated student loan debt alone almost $16 billion for people saddled with student loan debt. neil: who is paying for that? who is -- who is paying the debt relief? who is doing it? >> nobody is paying for it. this is interest, not the principal. the principal was paid a long time ago. $60,000, paid back $200,000. neil: i understand. bottom line you can argue about interest rates but he was wrong that no one is paying this. he's right about that part of it, no one is paying for this and that means everyone is paying for this. it added to the debt. senior vice president, senior policy director for the committee for responsible federal budget.
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obviously welcome news for those who are getting some of this forgiven but we are all being charged for that, that's the bottom line. >> i'm happy for the folks who are getting student debt relief but that means higher inflation at higher interest rates. that higher prices at the grocery store, higher mortgage rates, less wage growth over time, businesses can't invest as much and it is higher interest on the next cohort of student debt. diane: tell people this was a sleeper issue for many but we have a lot piled onto the debt, $34 trillion in debt, doesn't make a difference, this kind of stuff does and when you tell people we are just paying for it with more debt, that opens the gate for other stuff. it has been open for some time now. both parties views, it's going out of control on this and
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makes it ironic the supreme court is ruling you can't do it and he is doing it. what do you make of it? >> there is actually 12 different debt cancellation policies, this administration cancels $1 trillion of student debt total. think about interest rates, mortgage is 7%. deficits, in the area of people are facing the actual cost of borrowing at the federal level. neil: we were ash near 0. hard to claw that money back. the fact is it is done and set a precedent.
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>> a lot of it is not out the door yet. the power of the hearse and implementing the rules. this president in particular, he's going to cancel the debt. it's inside the intent of the law. neil: i want to go to the gentleman who has been following this closely in the new york metropolitan area, the director of research at the empire center for public policy. everyone is focusing on governor hochul's decision to put on the pricing plan lifting tolls for some getting into new york, $15 for truckers and the like, $37 or more depending again, put that all off but replacing it with some kind of tax hike that is not clarified
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but does seem to be coming. >> behind this is the new york city subway system, together they have the highest construction costs of any -- the state of new york to contend with that was going to tax drivers in lower manhattan where congestion pricing scheme is done the right way. this is one size approach charging people the same. you had this plan to collect $1 billion a year from drivers so you could spend $15 billion on upgrades to the system and the fundamental problem was albany and new york city didn't want to confront underlying factors or talk about what the new york times found was the most
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expensive subway tunnel on the planet. albany had a painful, $1 billion congestion pricing approach. the governor pulled the plug and that. how do you keep funding this inexpensive system without the dedicated money come from drivers? proposals have ranged from a new tax on businesses from new york city to just having the state of new york give one billion dollars a year to the mta. the problem with the last approach is the state of new york doesn't have an extra billion dollars a year. budget gaps in every fiscal year for the foreseeable future. neil: they don't talk about it that much. thank you. we will see where this goes. you might have heard the belmont horse race is now in saratoga this year. that's where you will find kelly. >> reporter: all eyes are on mystic dan this year. we caught up with his trainer
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20 i always wanted to cover big horserace like the kentucky derby or the belmont stakes management always tells me you can't wear a hat so i get pushed aside but it is okay because kelly is one to rely on who looks great in hats and that's a big thing and that race is tomorrow. >> that's right. a lot of happened a lot of money. the first for the belmont stakes of $2 million, there will be 23 races across these
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four days totaling $9.7 million which we are in saratoga springs at the historic saratoga race course which is a switch from what we usually see, this race is held and we switched it up, those major renovations, the location change means the test of champions which is the same for being the longest leg of the triple crown is shorter than in a typical year. this season will be the same length as the kentucky derby. we caught up with kenny mcpeak who trains the kentucky derby winner, mystic damage the horse also came in the second at the preakness. mystic dan is looking to make another splash tomorrow. what i found fascinating is his connection to this 3-year-old horse, he helped breed him but has been part of mystic dan's journey from the start. >> mystic dan's horse, easy horse to be around, quiet,
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smart. they had to alter the distance but he's going to like the speed of the racetrack as opposed to baltimore and will be an exciting race. >> reporter: baltimore is where preakness was. you can watch this on fox's for exports, post time is at 6:40, no triple crown contender this year but all eyes are on mystic dan, 5 to one odds and the favorite sierra leone at 9-to-5. i will show you my new friend mango. mango is a pony but you wouldn't know by how large he is. i looked at him and thought this is not a pony, this is a horse. i look on how to make my ponytail as luscious as his so the question is who wore it better? neil: i don't know. i just don't know. i wish we had more time.

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