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morgan brennan, jon fortt at the north korea stock exchange joining us, former chairman of cnn with us, and fast company's editor and chief good morning, guys good to see you both tesla will lead the hour, announcing formation of a special committee this morning to evaluate ceo elon musk's proposal to take the company private. musk taking to twitter again last night saying he's excited to work with the likes of silver lake and goldman as financial advisers for a potential deal. all of this follows report out of "new york times" that tesla's board was caught off guard by musk's funding secured tweet last week. they go into additional detail about the saudis and in the time's words, haven't taken the steps you need to take necessarily if you were going to start to embark on a deal of this size. what's most important here right now given that 50,000 headlines in 24 hours. >> it is hard to distill it down to the thing most important. i think for my point of view,

i'm watching to see if we get an actual comment out of goldman. so far they haven't commented on musk's tweet sounds like silver lake is saying the relationship is informal, they're advising but no contractual relationship is achieved, no money change d hands. i am watching to see how much substance there is to this tweet as a follow to the original tweet that started it all. we're still trying to see how much substance there was to tweet one. >> got an a k if people are looking for that walter again, he doesn't play by the general rules, that's part of his cult status, part of his visionary status what rules need to apply to him and has he broken any of them? >> the first rule that needs to apply, he has to have a board of directors that's informed when he's putting something out like that it is good that the board of directors formed a special committee.

this is why you have boards of directors. you think of taking the company private, announce you're hiring goldman, sachs or that the saudi sovereign wealth fund you have been talking to for the past two weeks, you need some governance structures there, and his approach is one of his charms. why he's successful. but a board has to be there to say we're going to enforce some good governance here >> it seems like it is not necessarily so much an issue of twitter being bad, it's a fine method for distributing information quickly. elon musk seems to have a premature proclamation problem maybe there's a medication for that i wonder, stephanie, if there are lessons for everybody that's not elon musk in this, ceos, founders, how they use twitter my sense is he might get away with something here because of his visionary status that others would not.

>> i mean, i think that yes, the lesson is that this is a medium for better or for worse that somehow does encourage people to make those proclamations before they had a chance to think and be measured. not just the case with elon musk there are lots of others that use the platform indiscriminately i think that what i will say is i don't think that corporate america or global corporat environment has a twitter problem, per se. i can count on one hand the number of ceos i feel are using twitter in a way that is inappropriate or that their boards aren't aware of or where it is clearly not a joke you look at someone like the ceo of a public company, aaron levy, he has a twitter feed that's funny. the board is well aware of what he is doing. it is clearest not trying to move markets or slam

competitors. >> some facebook executives have gotten in trouble on twitter >> those are the handful >> walter, going back to the special committee announced by tesla. a board of nine people, the special committee has three. the press release says that committee has full power and authority of board of directors to take any and all actions on behalf of the board of directors as deems necessary to evaluate and negotiate a potential private transaction. what do you think of that? >> that's fine that's why a board would set up a special committee. i do think you have to look at why you would want to go private. you can see why the saudis would want it, they'rie diversifying their economy, they want tesla you have to see what's in the interest of the tesla shareholders and quickly, getting back to twitchy twitter happy ceos, it happened in the white house,

too. twitter is not per se a bad platform, nor is a telephone a bad technology but when you use it without thinking or when you use it in ways that can blind siside your staff or board of directors, that's a bit of a problem, and twitter does kind of encourage you to get up early in the morning or stay up late on a saturday night and get a bit twitchy, twitter fingered. >> stephanie, if we look at tesla and think about what investors should do, assuming you're accredited and have the option to be in the company as a private company, do you think there are dangers, especially given the fact that the key person in the company isn't necessarily bound by convention in being less liquid, being in a private company instead of public >> sure, there are a lot of

risks. some of the accredited investors are sophisticated, they're in private and public vehicles. i don't worry about those individuals being able to assess whether or not this is a good route for them i think it is the retail investor who, you know, quite honestly is not schooled in what it means to be a holder of a private company that i would worry about. >> that's what i wonder about. >> for me what's so interesting, and this is, i want to bring up an analogy to another ceo that walter knows really well if if elon is so concerned about managing earnings on a quarter to quarter basis, i think he is in a great position to take a lesson from jeff bezos who has done a great job of telling the street, communicating that this is a long term game, from quarter to quarter, earnings are going to potentially fall and you may see spikes in earnings if any ceo out there has the ability to rally his investor

base, to get his investors to recognize this is a different kind of company, there's going to be ups and downs and we need to weather this as a public company together, it would be elon. >> a good point, especially on a week where david wells is leaving netflix, had to walk investors through all kinds of ups and downs regarding changes in business model and cash burn, same issues that elon struggles with and yet the street, i don't know i mean arguably to your point has a better sense of calm about changes that happen on a quarter by quarter basis the thing said about bezos, he is a visionary but amazing at operating at scale i wonder if the verdict is still out on elon's ability to work at scale. >> well, absolutely. jeff bezos has a vision, he also has a discipline of looking to the long term, but he also knows how to execute he gets products out of the door and there's a discipline that comes whether it is netflix or

amazon from having public investment, from having david wells have to explain to the street what's happening with netflix earnings, and for elon musk to say i don't want that discipline any morre is a littl disconcerting, he is somebody as a company and person could probably use that discipline >> bezos doesn't even do his own earnings calls, he manages to communicate all of that with his biceps >> he has been more active on twitter lately, too. >> walter, stephanie, we have been talking about tesla for a few days now you always add something new thanks, guys good to see you. >> thank you. when we return, home depot out with a big beat on earnings and revenue while upping four year guidance on the back of strong growth in comps a deeper dive into the results

coming up. first, let's check where we stand in the markets the dow is up 123 points s & p and nasdaq are higher. more "squawk alley" to come. this wi-fi is fast.

i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back take a look at markets right now. broad based rally, the dow up about 126 points uncertainty over possibility of a currency crisis in turkey has lessened a bit of relief the lira bouncing back a bit

this morning what can you expect the rest of the year thank you for joining us >> great to see you. >> gabrielle, i'll start with you. we've seen some relief in terms of the plunge in the lira. how concerned are you about pain in turkey spreading to other parts of the world. >> i'm not sure we're done with the pain in turkish assets nothing has fundamentally changed. turkey has a lot of external vulnerabilities and not adequate response to shore up sentiment i think this comes back for turkey itself. to your question how we should be concerned with other emerging markets, a lot of them are better positioned. when you consider impact on developed markets, more muted impact >> and yet we have data that

much of it was softer than expected from china overnight. china risk here? >> i don't think china now is a real risk. certainly a risk in terms of heated trade negotiations and what not, the things we have been putting on the back burner for a little while going back to what gabrielle said, you look back to history i think in 1997 we underestimated what the impact of thailand would be it is so small it doesn't have much effect globally yet what happened was it did spread, it spread to indonesia and hong kong and korea. and then we had other problems in russia and latin america. gee, that sounds fairly similar to today. >> what's going on with the lira, do you think it is similar to what went on in thailand? >> from an economic perspective, our feeling is that no, it is probably more country specific rather than something that could end up being ex-around the globe

it sounds similar to what people were saying in july of 1997 the market hit a new all-time high august 3rd and another high in early december, only to fall 11%, and the emerging markets when all was said and done were down more than 50%. >> if i could take the other side of the argument, i would find that during the late '90s we had a lot of external vulnerabilities in a lot of emerging market countries. it was a lot of growth with foreign debt and foreign inflows and find comfort in the fact that as a lot of em countries improved those vulnerabilities, it is tough to find the turkey example. it is only a couple, not even a full handful of em countries that are this vulnerable at this time. >> we weren't coming off a decade of qe, entering a period of rising rates and global inter connectedness. it is different.

the backdrop is different. >> the qe argument goes into the fact that for awhile investors were rushing into emerging markets, a bit indiscriminately. it is important to see the painful process we're seeing now, where the more fragile economies, handful of countries that we find as examples are seeing premiums go up and seeing investors demand a higher price for investing in them. it is a good thing to see there's some discrimination happening. >> i wonder what your explanation is for pressure on india's culture today. is that any worry of contagion or sort of a little move in sympathy >> if i were an expert on india, i could probably come up with a good answer. i will just say i pass >> gabrielle, any ideas? >> so i do think there's a little bit of worry around emerging markets as a whole, india, big net oil importer,

higher oil prices made inflation go up in india, have worsened a little the external vulnerabilities, do we expect india to turn into a turkey situation? absolutely not >> how should investors be positioned given the conversation we're having. >> they should be vigilant to the possibility of further concerns about emerging markets, but i'm standing as a bull with a lower case b looking for 6% growth in the coming year. >> gabrielle >> important to consider the rearview mirror, the trend was u.s. outperformance relative to the rest of the world, full of problems and headlines when we look forward, we find that opportunities are international and include emerging markets into that basket. >> thanks for joining us today. >> thank you shares of home depot jumping this morning after the retailer posted a beat on both the top and bottom lines they're firmly higher at the moment courtney reagan is back at hq

with details. >> home depot's second quarter is the highers earnings in sales history, beating on both those, leading to increased employer expectations, even though the second half is a harder compare than what we saw in the first half for the company global comparable sales were 8%, well above expectations. u.s. comps, 8.1% strongest in 9 quarters. may was the strongest month. comps more than 10.5%. as spring sprung, they were able to get seasonal sales that it lost in the first quarter from bad weather. called it record sales in the garden business specifically home depot says all departments but one had mid to high single digits comps lighting, the only category or department to see sales fall that was from led price inflation largely. sales topping growth for do it

yourselfers, big ticket items makeup 20% of their total sales. online sales increased 26%, and conversion is higher 47% of all online orders are picked up in stores. a pretty big number. still, shares were lower, then higher it is not atypical when home depot beats by a men ee or more, shares are lower 40% or more by end of the session and higher 60% of the time they say the inventory home shortage is causing price appreciation in the u.s. and they say home affordability remains at a comfortable level overall, compared to what we've seen historically. there are inflationary pressures from rising raw material costs, transition costs and tariff costs. home depot says it is managing, noting tariffs for washing machines is 25 basis points of

cost per share >> depot is giving us a lot to work with the last couple times, including today. when we come back, why our next guest says amazon's advertising business is set to be the most profitable in a few years. and later, staying on top of the turkey story and market spillover. a live report from istanbul as european markets close in about ten minutes. dows just off the highs, up 90 you always pay your insurance on time.

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amazon shares are on the rise today, up nearly 1% up more than 60% so far this year they expect amazon's advertising business to double revenue by 2020, even surpassing web services profit by 2021. joining us now, the analyst behind that note, michael olson, senior research analyst at piper jaffray. i want to ask you how you think

about amazon's advertising business when i look at it, it is mostly focused on advertising stuff that's on amazon already so in a way is it making the supplier pay for discoverability? >> that's a great way to put it. amazon is already an e-commerce powerhouse and leader in cloud computing but now the world's largest product search engine. more people search for products on amazon than google or anywhere else. and it is really parsing through all of the thousands and thousands of products on the site if you look at one of the examples used in research, we did a search for 4ktvs, and 4,000 results came up. you basically have to pay amazon to be on a sponsored listing or banner ad. >> here's a problem potentially, seems like amazon is already

pushing the third party retailers on its site to use its logistics operation to take advantage of prime and pay them for various different services if they also then have to pay to get their product discovered, will that eventually drive some of them at least to tasks growing off amazon's platform because they're paying taxes to stay on? >> well, i think that's a good question however, i think we're at a point where amazon's reached an escape velocity, and it is hard as a product manufacturer or seller, third party seller to move to a different platform it is going to be very challenging. we think that it is a tax that product manufacturers have to pay. as a result of it from advertising perspective, will generate $8 billion of ad revenue for amazon this year >> mike, we've seen growing pains and quality control issues

play out at facebook and alphabet's google. is there evidence or data to suggest that amazon hasn't been able to leverage this and take market share from them in terms of advertising >> hard to say at this point i think it has to have happened to some degree it's really hard to parse out what product search market share looks like there's no question that amazon has taken some product search market share from facebook and google but at this point there's also a lot of share taken from off line channels it is a mix of both. >> i wonder when facebook talks about advertising, comes down to the ad load, how many ads can be in front of the user before the user starts to deteriorate does amazon have limits like that >> they would. you don't want to do a product as much as i mentioned before, one of the examples we had was 4 k tvs and have the screen be

responsible sword listing. there has to be organic results. there has to be a point they reach saturation for ad load as you mentioned, but we're quite a ways away from that at this point. >> all right thank you, mike olson. seems like the growth possibilities for amazon don't dry up very quickly. >> thank you meantime, european markets are closing mostly lower even as concerns ease over turkey's economic woes. the lira rallied 5% from all time lows against the dollar as erdogan called for boycott of u.s. made electronics. german gdp numbers are higher than expected, driven by higher household and state spending uk unemployment hit a 43 year low in the three months to june, despite rather tepid wage growth pound spiked initially before pairing gains against the dollar back to turkey, front and center for investors

back to willem marx on the continued currency crisis. >> reporter: we've had remarkable comments from president erdogan and from his son-in-law, finance and economics minister here. he's been talking to a crowd of supporters in the capital of ankara and saying it is dollar is no longer taken seriously as a credible currency. his father-in-law the other day talking about the enemies within and without and making reference to the trump tower on friday, focused on tariffs on steel and aluminum it was seen as being responsible for the turkey slide and seems like a move to weaken the currency take a listen to what erdogan said about the fact that turkey is along countries like china

and russia when it comes to sanctions. >> translator: it is clear that the economic very is global. the united states has not only targeted our country but has economically targeted countries from china to russia, from iran to europe, right next door, canada they have been targeted. >> reporter: talking to a range of people both in the financial world, market traders and those that own businesses, and there's a huge amount of uncertainty about what the future will hold. one man said he can't tell me what will happen tomorrow, let alone in a month's time. another one i was on the phone to saying it could get worse for the lira and for the wider general economy here in turkey in terms of action, everyone wants to see taken, it is about interest rates at central bank, something we haven't seen happen only measures over this week were to prop up liquidity for

local banks, guys. >> we have been speaking about the financial impact of turkey the other big key piece of this from a geopolitical standpoint is the military and security implications of what's happening there now. just from sheer geographical standpoint, turkey is a key ally within the nato construct. has there been any talk within turkey or among our allies in europe about how all of this effects security >> reporter: well, mr. erdogan himself has been incredibly critical of the united states and president trump in particular the last couple days, talking about being stabbed in the back by an ally. clearly that relationship forged through nato initially is now clearly under a bit of pressure. in terms of the crucial role played in this part of the world, there's a huge thing in intellect for all efforts against the islamic state in iraq and syria with u.s. war

planes flying out of there for the last few years in terms of relationship with europe, we heard merkel talk about need for independent central bank, but we also heard from one of her major ministers, economic minister saying that these sanctions from president trump's administration instituted on turkey were unfair and illegal. that's very much echoing talking points we heard from erdogan the son-in-law that thanked the economic minister for making those comments >> thank you willem marx in turkey. let's get a news update from sue herera good morning, sue. >> good morning, carl and everyone here's what's happening. mcdonald's investing $6 billion in a nationwide restaurant makeover among the changes, redesigned dining rooms, digital self order kiosks and digital menu boards west virginia house of delegates voted to impeach all four of that state's supreme

court justices one retired after the impeachment process, the other three face a trial in the state senate over the use of $3 million in state funds spent to renovate their offices move over, australia austria claims the world's most liveable country vienna has taken the top spot, compiled by the economist's intelligence unit. the last seven years, they consider 30 factors in 5 categories, including stability, health care, culture, environment, education, and infrastructure and caught on surveillance a bear wandered into a connecticut liquor store yesterday. this is crazy bruce's discount liquor, located in bristol, connecticut. it walked through the automatic doors into the vestibule quick thinking employees hooked latches on the second set of doors so it couldn't get in.

did you see that unsuspecting customer, he walked through without noticing that nearby bear he was quickly ushered inside. the bear ran off, nobody was hurt no word what the bear was looking for. that's the news update this hour back downtown to you guys. morgan, i will send it back to you. >> that's how you know the market rally has been going on a long time, when the actual bears are driven to drink. >> boom! >> absolutely. that's a good one, jon i'm going to use that if i do that story again >> all right after the break, why tesla's board was caught off guard on musk's tweet on taking the company private. but first, bitcoin falling before lseoss. more "squawk alley" after the break. from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

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committee about the going private deal the meaning behind the original tweets, gene munster joins us. the odds maker on whether a deal will happen. and phil lebeau. gene, walk us through what you see happening here >> i think we are on a slow road, call it three to nine

months to tesla going private. if we're going to put the problemability on it, today it is about two-thirds. call it 65%. that's up from where it was a week ago, just after this when we thought it was more or less 50/50. effectively what's happened is each of the past two days, we have gotten more pieces that this in fact is something that tesla is going to aggressively pursue, which is important but also some of the big unknowns we have a little more visibility, you talked about it yesterday in saudi funds and where they potentially could get funding behind it. the big picture is twofold first that tesla will perform better as a private company. i think investors recognize that and second, i think whether public or private, the value of the story is going to be increasing over time >> gene, when you have reports that the sec is now questioning or probing the company, does

that throw any cold water on potential deal making? >> it doesn't. we're not legal experts on the topic. but people that we talked to, we believe that some of the language used is most in question around funding secured is vague enough that there's no legal risk there separately, the means of communication has been well established, that they can use twitter. and last, should they notify nasdaq the answer is absolutely i expect a fine will be levied against tesla, a small fine. below $50,000 is my guess, in terms of not notifying nasdaq about this pending news because it is a black eye for nasdaq if you put all of that together, there's no legal risk of elon musk being exited from the company or going to jail this is a small housekeeping risk in terms of how they

communicated and made an error in how they communicated to nasdaq >> phil lebeau, it hasn't been long since there were headlines that tesla was asking some suppliers for refunds. now there's this move by elon musk arguing that perhaps tesla should be taken private. how is this move likely to effect, if at all, tesla's supply chain, its relationship with suppliers, efforts to get more profitable in the near term >> i think they're separate from each other, jon. whatever tesla is doing on the operation side of the business, for the most part will be fairly insulated from the board room drama, if you will, and whether or not this is a public or private company. having said that, there is an aspect of the operations of tesla that could impact the decisions of the board or major shareholders in the future, and it comes down to the performance of the company relative to

profitability, relative to raising capital, relative to cash burn. let's make some assumptions. assume they do fantastic in the next six months. elon musk would say look, with the operation side of the company is doing great, this is the way we should go forward on the flip side, what happens if they do not perform up to expectations what happens if tesla has to do a bigger capital raise than previously expected. will shareholders sit there and say i'm not sure if this is the right move going private now it could have impact in terms of board room drama impacting the operation side, i don't think that's likely to happen >> fwegene, if you have the saus coming for the deal, what it means with cfius and regulators, given the fact that lawmakers are making that board stronger what do you think? >> so we have to look at the math it starts at 82 billion enterprise value

that's the $420 take out price separately before that we did similar math that projects it is probably 25 to $30 billion, need to come up to bring tesla private. so the reason why i mention that is that elon musk, it is unlikely he is going to want a larger shareholder than 20%. he is at 22% which implies 16 billion coming from the saudis. that would be 20%. it would be a nonvoting control. my understanding of cfius, that becomes an issue if there's control at stake in this it would be clearly noncontrol where it gets dicey is if he can't get other financing, to get to the 27 billion or so. if he is unable to do that and needs to rely more on the saudis, that could trip something where it ends up being a majority and causes cfius to

step in. i think it is unlikely that happens though >> phil, there's been reporting in the past week about tesla's discussions with softbank a couple years ago in which control was an issue if gene's game three plays out, likely to be an issue in the short term. >> correct correct. i think gene properly lays it out there. how much control, if there is any control, will the saudis be seeking or ultimately would a deal require in order to get their backing. i think he's right if it comes in it is a nonvoting aspect and we're putting up 15, $16 billion and there's going to be other backers as well, i think that cfius is a far lower hurdle for them to overcome. i think that's at the end of the day the metric we're looking for in the months ahead. >> going to be an interesting three to six, nine months if you

buy gene's theory. we'll see what happened. thanks, guys now let's get to dom chu at headquarters with breaking news on ic match. >> we're watching shares of both companies, very linked iac is the controlling shareholder. shares for match are lower, just off the worst levels of the day. this is because of a lawsuit being filed by a group of founders, current executives and early employees of tinder which is now owned by match group. this group describes how iac match, that team allegedly robbed tinder employees by manipulating financial information, undermining tinder's valuation, unlawfully stripping away tinder stock options. this is what the lawsuit is alleging we're in the process of reaching out for any kind of comment from iac or match group the statement from plaintiff group goes on to say that in essence what happened is iac match may have allegedly covered

up some of the potential financial figures that could have entitled certain employees and founders to more financial compensation in the event tinder became more successful in its time under match group these allegations are being put forth in a press release and lawsuit. we'll continue to monitor. those shares are moving because of this particular motion and we are contacting those guys for comment. back to you. >> dom chu, thank you. coming up, a peek at the new spacex craft watching the note yield knocking on 290. when rates move up, flight to safety is in the rearview mirror the big number13, 04 1304%. what does that mean? after the break.

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scott walker, here's what's coming up top of the hour. new information where fund managers think stocks are likely to head next the question is do our traders agree. "new york times" says the tesla board was blindsided by elon musk's tweet about going private. star author bill cohen tells us what the next chapter in this drama is likely to be. both nigerian brothers are with us. that's at noon eastern >> double trouble. spacex showing off the new

capsule alongside astronauts the first to ride it elon musk space company saying a mock up with four cushion seats, tilted toward a touch-screen that will display progress in flight and a look at the real thing is what they gave us under construction on the rocket floor. the president and ceo saying the business opportunity will, quote, not be a losing proposition for spacex, but that safety is the primary concern, especially since spacex will do what's never been done before, they will fuel the rocket while people are on board before liftoff. >> we would never propose it, had we thought that it was a less safe way to go. the vehicle has more margin. when we load fuel close to liftoff, the straunlastronauts e protected, they're in their seats, protected by the launch system and the heat shield between the dragon and rocket.

>> that's a result of nasa's commercial crew program which includes rival boeing. each one contracts from nasa in 2014 to send astronauts from u.s. soil to the space station the timelines have slipped, spacex targeting april for a manned test flight boeing, mid 2019 as for the first astronauts to ride dragon, one of them piloted the final flight of the space shuttle program, he hopes he will get an hour to look out the window that's something he said wasn't possible on past missions. >> this issue on fueling wlihile they're in the capsule sounds dangerous to me. rocket fuel right beneath you. why is that beneficial for the mission itself >> this has been a topic of debate the last several years. nasa basically gave the okay for

spacex to do this. the company as we heard says for them, the margin is better by doing it that way. but the astronauts themselves also commented on this at this event. they said they put their faith proper protocols and safety decisions nasa makes so they will go along with this. >> as we head to break, take a look at shir shares of square surging to a high. surpass surpassed venmo for the first time ever. about 6 billion beyond twitter i believe. huhostl ahead. don't go away. this wi-fi is fast.

i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops.

oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. whole lot of cash on the sidelines. there's just, there's no way where you can just say i just trust everything that's going on that concerns me put aside tariffs and what the president is doing he's got his reasons but when you just, i just think we borrowed from the future to kind of pump up the current market and as much as rick santelli gets upset b about quantitative easing and cheap money, i think borrowing from the future and the debt is just as big a problem if not more so. >> that is dallas mavericks owner, mark cuban on the halftime report yesterday talking about his cash on the sidelines. while bringing our own rick

santelli into the conversation let's get to the cme now for his response rick >> joyou know, i'd glad they played this. didn't catch it yesterday. i'm like to thank him. he's a great american and i couldn't agree more that how we leave our fiscal house, what order it's in for future generations is crucial i also appreciate him putting my name in the same sentence as qe is not a good thing. negative interest rates aren't good things, central banksers thinking they're superman or wonderful woman aren't good things either. but i think we could separate these two issues there's an immediacy an immediacy about the 16 trillion all these central banks have thrown in to hold up or subsidize the global economy whether through managed interest rates, purchases of corporates or stocks or sovereign securities there's an immediacy to that

as we try to normalize what happened in turkey or what's going on in the emerging markets. all of that is something that's happen ng ting in the here and . with respect to deficits, they'll get you in the end, but the reel real deal and i'm reminded of it anybody who has some extra time when i'm done, i believe it was the end of june 2010 i did stop spending, stop spending, stop spending. i screamed it veins were popping out of my neck the reason i did that is because this country does not have a tax problem. it's not that we don't collect enough in taxes. it's that we are just flippant with coming up with great potential ideas and throwing money at them with no perseverance to managing money or keeping our finances in order or not outspending our means that's the issue we have what i was going to talk about today fits right in with this. senator sanders and the notion

of free medicare, we had a guest on today and i understand that it's probably not going to be reality anytime soon, but it is creeping into the public consciousness. you know how much debate there was for the 230 billion tax cut and that number may be high, it may be low, i just kind of picked it out of the most recent research 230 billion, okay? well, it would cost over 3 trillion a year for medicare for all. which means it's 1304% larger. don't hear much sidewalki isqui that see, the issue is we throw money at all our problems. we don't fix anything an find religion education is a great place to start. throwing more money at something doesn't fix it might make the public's view on it or the way they're laser beamed on to it go away for a while, but the problems don't go away even things like infrastructure spending, we need it but lot of states don't ever

budget for it and if they do, they put it into other areas that need plugging up. we need to stop spending and get our house in order that's how we control deficits and i agree with you, mark cuban. >> wow back to you. good one, rick coming up on fiscal 19, it's going to be a big pifotoc r debate "squawk alley" continues in a couple of minutes. don't go away. part a that's your hospital coverage, part b is all the doctor stuff... the most important thing to know? medicare doesn't pay for everything. and guess what that means... yep...you're on the hook for the rest. that's why it's important to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. a plan like this helps pay for some of what medicare doesn't. so you could end up paying less out of your own pocket. that's nice. and these are the only medicare supplement plans endorsed by aarp. selected for meeting their high standards of quality and service.

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what a day and it's only tuesday. let les get to scott wapner and the half >> welcome to the halftime report our top trade this hour, back to reality. after four straight declines for stocks, markets rallying again new numbers now showing investors p are betting big on new highs. here to debate, joe, jim, steve, the brothers najarian are here as well. we begin with stocks bouncing back even as some remain focused on what's happening overseas even with those concerns, it hasn't changeded the bullish sent m joe, the sentiment coming from the fund manager survey. biggest over