they give you more information on what exactly is happening in washington. we will bring it to you here. also plenty of news from the financial world. speaking of which, political acrimony. the man he would be the president's choice for fed chairman stepping aside. why this essentially could mean a very -- another term for ben bernanke. why summers was not her first choice. why janet yellen should be the next head of the fed. five years from the financial crisis. president obama is expected to come out and tell us why things are better now. she was squarely in the middle of that meltdown. tell us if she agrees with the president. right here. ♪

dagen: so much news today. the president coming off. larry summers. the big bombshell yesterday. call the president on the phone and said were backing out. connell: that is still the big market story. he will watch washington. you're right. larry summers. dagen: what is nicole petallides watching. a big rally. >> reporter: watching how those pieces of news are market-moving events. fed contention. ultimately the market thinks that the money printing keeps on coming from the fed. jumping up 156 points for the dow jones industrials. the nasdaq composite, cora%, nasdaq composite. all of the dow components have been in the green throughout the day. the other thing that is also interesting is how this delays to bond yields, the 10-year yields.

that may move to mortgage rates. we are seeing home levels soaring. so the pieces of news and then how they relate to these markets. dagen: thank you so much. larry summers pulling himself out of the running to be the next chairman of the federal reserve. what to make of this. former governor of the federal reserve. did the person not in some way as for this? it was such a politically charged selection. i mean, he looked like the obvious number one candid. he was -- you know, he is one of the president's cronies. he has a very interesting background. people love him, hit him. could this have been avoided if he had just said from the beginning, i don't want the job. >> well, i don't know that you would expect him to say that because that is not true.

he has wanted the job for 20 years. i don't think that he would have wanted to step aside easily. dagen: what do you make of what kind of federal reserve chairman he would have been? no argument from the democrats who were not in favor of a potential nomination, he was in favor of deregulation. his policies helped create the financial crisis in the first place. then people were also concerned, at least investors, that he would be too quick to withdraw all of the stimulus that the fed has in place. >> we're going to have to the face during this next chairman termed getting away from the near zero interest rates. i mean, the fed funds rate at near zero is not as effective as people think it is. what it does is disrupts the clearing process among the

market. there is -- there is the 30 day rate. you can look out. and 90 day rate. 180 day rate. a 6-month rate command all of those rates are really determined by market appraisal. and we tried to peg the fed funds rate at this lower level. it's really quite counterproductive. dagen: what kind of job you think that janet yellen could do if she was the chairman of the fed? >> well, i think that she has the equipment or tools to do an effective job. she just does not have the long experience. stood in line for the chairmanship for 20 years. i think she may be less ready to do the bold new steps that are needed.

>> to you worried? >> look at summer's record before we go again. do you worry about such a political appointment? again, he is a loyal lieutenant to president obama. and at a time when the federal reserve is essentially propping up congress by buying all of our debt, would it be wise to pick somebody you did not have a political allegiance to the man running the country? >> i think that his allegiance to good economics overshadows his commitment to president obama. so i think that larry would have been very effective at thinking through a new strategy. and we do have to have a new strategy. dagen: we will see how it all plays out. have a terrific week. i hope to see very soon. dagen: -- connell: a lot of people on wall street talking about the fact

that it has been five years since the bankruptcy of lehman brothers which kicked off the financial crisis. dagen: outside the former home with a look back at what has changed and what is not. >> looking back a lot of this. too big to fail was the phrase five years ago. the former ceo of barclays which eventually bought lehman's north american holdings, writing in the financial times today that too big to fail is still a threat to the global economy. the steps taken so hard to prevent are insufficient. of course it was barclays that and a few days before the bankruptcy filing of lehman on september 15th 2008, barclays try to buy the north american holdings, with the u.k. regulators said no. after the bankruptcy filing, the largest in u.s. history, 600 billion in debt. bought the position. so too big to fail is still alive and well.

talk about this issue earlier this morning. going forward lehman brothers no longer exists. barclays does. connell: thank you. our next guest was front and center and washington d.c. during the art of the financial crisis. the former head of the fdic. fighting to it save main street from wall street and wall street from itself. thank you for coming on. kaj want to talk about a column that you wrote last week. it is interesting and brings up some interesting points. let me bring up what bob bowman pointed on. it's still a threat to the economy. >> i think our tools for handling large financial restitutions unavailing are tremendously improved from a we have before. a specific institution fails, you have the tools to deal with

it now. i guess i would disagree with them a little bit. but you're really don't end it too big to fail until the market perceives it is over with. you don't back up these big guys as they get in trouble again. i'm still not sure the market is convinced. connell: any one of those down the list. bankamerica, wells fargo, if one of these firms was to get in trouble you would not have to bail them out. we would not have a crisis, bottom-line. >> if it is a 1-off type of thing, now. there is authority to provide generally available systems, liquidity systems for solving institutions across the board. if you have a 1-out situation, yes, deal with it. take the holding company, put it in receivership. but the operating subsidiary under it. it can control the holding

company. the bilateral agreement that is being worked on now between the fdic and the regulators in most developed countries to recognize the authority and be able to avoid systemic disruptions. there investment bank. they had to use it if they could. connell: better than we were. i tell myself i wasn't going to do a lehman column. you ready column, but it is about lehman brothers. real people. >> i'm writing a book for yen children. the kids that dealt with it. it reminds me of the very -- the

challenge and hardship that these families went through. a lot of people lost homes and took mortgages they should not have. so traumatic for them. they lost their jobs because of the recession. that is our regulate. connell: those people. what about those people five years later. >> they are clawing their way back. when they get jobs there to be lower paying, rebuilding savings a little bit. they have a long way to go. to get into another downturn led by a system is problematic. dagen: it's interesting. will talk more about it.

thank you. always good to have you on. dagen: unemployment at 7%. home ownership as the los has been in 18 years. so larry summers is out. the markets are now looking for a janet yellen-led fed. connell: and we are waiting on that address from the president today, supposed to happen at the white house. a lot going on obviously in washington. why we are better off five years after the financial collapse. in terms of oil. that's down. everybody has different investment objectives,

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particularly when the takeover talk began. we started to see it running up. it is a loser. now the question is the better soon may be interested are now according to a reuters report not necessarily interested in the whole thing. it may be part which certainly is not as lucrative. so you see the stock is virtually flat at $10 change. it had been higher than that. obviously pulling off of one of the nasdaq indices. that is another piece of interesting news. the big picture is who will get blackberry and not a taking the whole thing all will it just be a part? that is why you are seeing it year. dagen: thanks, nicole. connell: of the question now, as much as possible.

so are we better off now than we were five years ago? financial crisis time. charles is here. >> the collective. you know, some interesting points. a couple of times you said things that i kind of felt, well , too big to fail. we have the tools of improving. that still doesn't get to the essential question. second quarter. make a lot of money. took bank of america out of the dow jones last week. keeping the banks alive and solvent, but not doing anything for main street. dagen: well, she said that the four largest financial institutions are 30% big then there were.

much bigger. it may have the tools to do with them. their still way too large. if elected individuals, and unemployment rate. people are dropping out of the workforce. a labor force participation rate that is the lowest it has been in 30 years. thirty years. the people who benefit from that house buying on foreigners to a large extent. i don't see what has trickle-down. >> a one year cd. and getting a quarter of a percent. dagen: the people who did not take risk got screwed a nest of getting it. he did take risk. savers. >> this is an economy you, trying to get people to spend money they don't have people lost and a half trillion

dollars. some of it wasn't. business has been pretty smart about this, but the government, a larger and larger role. that ultimately goes back to a taxpayer. whatever it is, that human part of it they still feel completely left out. until they buy into the solution, whenever that might be, we won't have a solution, i don't think. connell: waiting for the presidents at the bottom of the screen. no night -- know better, no summers. he will return to to be the next head of the fed? charlie gasparino will join us. dagen: can you count him out? i mentioned briefly, the massachusetts senator, her thoughts on who the next federal reserve chief should be. taking a look at a world currency. how they're holding up against the dollar today.

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♪ dagen: we keep watching markets here for you. it triple digit gains. larry summers said i am withdrawing my name from consideration as the next federal reserve chief. connell: investors place their bets on somebody else. >> president obama does not confide in me with these things. i talked to wall street and executives the talk to the white house. the overwhelming consensus right now is that janet yellen will be the next treasury secretary. i will point out that president obama god probably going to give it 210 baena -- excuse me, the next fed chairman. he had his druthers he would

give it to the former treasury secretary to mitigate who does not want it. and geithner id as but -- is advising obama. here's the interesting twist. one of his favorites is a former vice chairman, as janet yellen is now coming out of the fed. so this thing has not totally worked out yet. the consensus is usually right, not that it will happen. clearly the consensus became that larry summers was the favorite. initially it was yellen. and then obviously politics intervened in terms of -- i think the biggest problem with larry summers is that he was a route for the deregulation during the clinton years, helped with the final nail in the coffin of glass sigell which allow banks like to emerge and put risk-taking parts of the bank together with a guarantee, a company guarantee deposit institution. a lot of people think that is an issue with the financial crisis. he left government and a lot of work for the government, made a

lot of money giving speeches. that did not sit well with democrats, and i don't think the republicans are going to throw a lifeline. that ended it for him. the reason why the markets are awful, larry summers is someone who people think is more independent, meaning he will be more likely to taper faster and stop printing money. and that -- the stock market has been moving in tandem. essentially buying assets from banks. they actually give the bank's money. that is seen as a positive for stocks. it is leading the economy and a way to keep increasing the money supply. i will say this. think we are overplaying that because the bottom line is that they both have to deal with a very weak economy. to taper in a major way would be -- a lot of people think it would be suicidal. i think they're both doing the same thing. you know, a lot of times what is the -- what is the herd mentality, for the last sort of

six months has been larry summers is bad for the market, janet yellen good for the market because it would taper faster. larry summers is out, janet yellen seems to be in command centers give the markets. this is a wall street consensus. talking to ceos and people of that caliber. the overwhelming consensus from them is that what they're hearing coming out of washington is that it is janet yellen is to lose. that does not mean that it will happen. this is a present it is not want to be forced into things. if you look at it on paper, janet yellen is very, very qualified on paper. and that is a big thing. it is going to be hard to say no to potentially the first woman fed chair woman, the first fed chairman or chairwoman of the fed that is highly, highly qualified, what you agree with the politics and policies are not. so i think that is where we are right now. connell: good stuff. the recall as interesting as well. all over this throughout the

day. dagen: a rare bird. way to go. well done. president obama expected to come out and just moments to talk about the 5-year anniversary of the financial crisis. connell: we will stay on top of that. of course the big story, the naval yard shooting spree will see the president comes out while that is still under investigation. there is a market. markets up. individual stocks they're doing great today. ♪

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connell: the news is breaking in washington, d.c. today. the appearance from president

obama moved inside. the president has been briefed on the other big story on the right side of your screen. fox news confirming two shooters involved. we will bring you that when it begins. no word or not on whether or not the president's remarks will be delayed. anyway, on top of both of those stories, new developments. nicole: their outlook is a little weaker than expected. they recently had a summer plan.

the big picture is the numbers are not leading expert patients. some may have had is rising value. that is something that will hit their bottom line. dagen: connell: peter barnes is with us now from d.c. peter: jannette yellin appears to be the front runner. on friday, a moderate democrat

of montana became the fourth democrat. he feared summers would be weak on big bank regulation. it became clear that he would have a very tough time winning confirmation. elizabeth warren is also on the committee. she said she wants yellin. she has really good judgment. janet is one of those people who gets out and builds consensus among people.

i think there are a lot of good decisions because of that. peter: the president is considering don called. he may be looking at the predecessor. there is now the possibility that the president could ask ben bernanke to stay on longer. who knows. the president, he was getting a lot of pressure. he did not like being told what to do. that is what has been reported. connell: let's go to ron christie. would you like to be fed chair?

>> no. i have enough stress in my life. no thank you. i think it was a very difficult position for the president. you had democrats indicate that they would not support it. >> you talk about how it was handled. i think he recognized that there was a ground swell of democrats that would come out in opposition.

they will not be nearly as controversial as i am. a lot of the perspective we have on all of this is a wall street perspective. is it an obvious political choice? >> he is being told now that summers is out, you have to take

yellin. >> i think that peter has reported exactly spot on. i would not rule it out. connell: wow. always good to see you. >> it is a pleasure. dagen: i think they call it a sensitive builder. you are looking at a live shot at where the president will be standing moments from now. connell: former fed vice chair will join adam shapiro and lori rothman.

that is 1:00 p.m. eastern. first, here in the markets, we know that stocks are way up. here is the yield on the ten year period ♪ ♪

♪ >> i am jo ling kent with your fox business brief.

investor output increased by four tenths of 1% last month. the rise was the most in six months. chrysler could file documents for an ipo this week. the gap in employment rates is now the widest on record. an annual income than $150,000. families earning less than $20,000 have a 21% jobless rate. that is the latest from the fox business network. giving you the power to prosper. ♪ you know throughout history,

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sitting right near a record high. dagen: cheryl casone has a look back and a look forward. cheryl: good morning. we are in downtown manhattan. five years ago, we watched the dow lose about 4.5% of its value. the administration made the decision to let lehman brothers go. coming up at noon eastern time, we will be taking a look back. we will be joined by -- at the time, she was in the white house with president bush.

also, we will be joined by the brookings institution. why is it important to look back at what happened? you watch these markets rallying. you have a market that is again rising and pushing all time highs. the s&p is 34% higher as well. we will take a look back and a look forward. connell: we will see you at the top of the hour.

dagen: i thought it started when the home prices peaked. connell: that is when i bought my house. there is no genius involved here. dagen: president obama just moments away from giving this speech on how far we have come. connell: rich edson is standing by a head of of that.

we are waiting for the president to take stage five years after the financial crisis, the president took bold political action to save the system he has gotten plenty of criticism on the results of his economic plan over the last five years. if it were not for the president's policies, we would be seeing better growth. he is catching criticism. they should be doing more when it comes to dodd-frank regulation. pushes by liberals to change things about the tax code.

most of the profits are going to the top 1%. the rest of the folks are left out in the cold. those who have had the mortgages restructured, written down portions of it to stay in their homes. they will continue that theme at the white house. back to you. connell: thank you very much. dagen: go to gm. connell: they did get a bailout. good point.

nicole: watching shares of apple. a name that we follow so closely. down nearly $10 today. it is now the plastic back with the multi covers. overall, apple is still under pressure. it certainly has underperformed this market this year. people who bought it at 500 or 600 or 700 are a little disappointed. back to you. connell: still waiting on the president.

he is going to talk about the five-year anniversary of the lehman brothers bankruptcy. dagen: we will bring you that live coming up. ♪ peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the networknd services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar

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♪ connell: still waiting on the president. dagen: jeff flock is live in chicago with the very latest. jeff: we always try to show something that is riveting. that is what is going on at the case company.

we always try to tell you an interesting story. take a look at these cases. these are the old-school metal cases. >> we were thinking it was time to take a risk. these cases, which now, largely, in a lot of ways have been replaced by plastic cases. we have customers that can customize it to their logo and colors.

we have clients from china that by here. the amazing reason for that is the chinese can do it for less money. our quality is better. a little bit of an uptick. dagen: you include the automakers. how does it feel to have a market rally? connell: sandra smith is at the cme with the latest.

you have stock futures that opened last night up across the board. traders are taking note of the record high levels. we have been doing triple digit gains on a whim. you are less than a percentage point away from the all-time high. they are watching a lot of those key levels. nicole was saying earlier that is giving a boost. gold prices, they are up $11.

they are not liking the reason why the stock market is where it is. they just do not like the business. back to you. connell: still awaiting president obama to speak at washington in any moment. dagen: we will bring that to you live when that happens. ♪. ♪

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dennis: and the rally continues. cheryl: hello, everyone. i am cheryl lehman brothers collapsing. we will have a full hour for

you. five years after that crash, market soaring today. larry summers exit consideration as fed chief. plus, obama's take on the fed crisis. we will take you live to the white house. cheryl: we will be talking to two people that were in the white house. you know her well. she is a host on the fox news channel. at that time, she was the press secretary at the white house. we will also be talking with a woman that was with brookings. first, today's markets. what a day. he has no interest in being the

chairman of the federal reserve. nicole petallides is right behind me right now inside the new york stock exchange covering what is one heck of a rally today. you are absolutely right. the dow is up 161 points. pushing session highs for the day. it is not just one area. it really stems from a couple of things. we began to believe that the fed will print money. you see the treasury yields. we are watching the ten year.

mortgage rates, overall, will be better and more desirable. the homebuilders are jumping. right now, the dow is up almost 151 points. that is the latest here on wall street. >> it is really pushing down the energy complex across the board right now. this is one market that is not excited that larry summers is leaving. oil and rbob is down. heating oil is also down. we did get a little bit of a pop. they can forget about the fact that we will have more than what we thought on friday. we all know that the odds -- janet yellen is happy. at least that is the initial flag.

we are also seeing natural gas. we had all the storms in the gulf of mexico taper off. we are still going up on reports . dagen: phil flynn, thank you. thank you, nicole petallides. i am outside the new york stock exchange. many in this country that that this economy and financial system as we know would collapse. lehman brothers going into bankruptcy. i am joined right now by two people that were at the white house with president bush. both of you, welcome.

>> president bush was gathering all of the information from his advisers on the policy side. it was not just that day. it helps to focus the mind go back. they said okay. i want to know, what do you think will happen if we do not go forward with this plan. both of them said it is our estimation that it could be worse than the great depression. president bush said okay. i will give you my decision soon. he went into the oval office.

that is when he made the decision. it was go time. it was very difficult to get the legislation passed. having been there and watching him, his biggest concern for people like my mom and dad. this country is in crisis. p6 what did you say to the president? >> we were worried about the moral hazards. when you say did you not want to do it, of course we did not want to do it.

we had to think about what was the downside of not doing anything. we deal with it on a systemwide basis. we made sure that they were guaranteed. that is not an easy thing to do. as you look back, it actually work. cheryl: they go to $22 billion on profit with that.

you had to sell the american people. probably both of you had to sell this to congress. what was that like? >> this is probably the most unpopular decision that president bush made. i think it was the right decision to make. by then, i had an ounce many unpopular decisions. i was a pro at it. the collaboration and the ability for all of us to work together. to try to explain to the american people why it was necessary. it was very difficult. i had a great team to try to help me.

you still see paulson all the time. do you find that your memories have changed or do you think that you still remember those days? >> this was not the kind of experience that one has often in a lifetime. it was traumatic. it was also memorable in the sense that we did something that was helpful to the country. when i talk to hank, our accounts are pretty similar. >> from everybody's angle, you have pictures. you have to read everything. you have members of congress who have wrote down their memoirs.

you hope that it never happens again in america. it is very and struck him to know what is going on. cheryl: this was the end of president pushes term at the time. >> right before the general election. cheryl: i remember john mccain coming back. he faced his fellow republicans and democrats. all were opposed of this at the time. >> we did not have the support of our natural constituency. president bush decided that rather than letting them fail, he just was not going to do that. none of these steps were easy. we hated doing all of them.

the downside of the alternative was just worse. cheryl: i get to see you every day. >> it was one of the worst meetings i have ever seen. cheryl: thank you both for joining me downtown here in new york city. we look back at five years. we will be talking about it throughout the hour. both of us will. back to the studio for now. dennis: good stuff. thanks a lot, cheryl casone.

i have concluded that any process would be acrimonious and would not serve the interests of the federal reserve. let's bring in our all and elizabeth macdonald and charles payne. this has got to be crushing a worldwide rally. charles: this market did not want him in charge. it is not about whether or not he would have tapered. you have a guy who is not going to be dependable down the line. he said he would communicate better than greenspan.

dennis: the issue is not that summers was a hawk, it is that summers can be a jerk. >> i have seen the headline constantly throughout the media. it should be about companies forward guidance. it is economic -- this has got to stop. cheryl: the fear of it itself is the bigger problem. >> enough already.

the markets have always, you know, recalibrated and adjusted. the short-term rate is what is key now. the fed will telegraph it. cheryl: charles, what bothers me about this is i thought the markets were finally adjusted to the idea. now, we see the markets up. they are hopeful again that the throttle back is not coming. charles: i think the fed, whatever they will do, more or less made up their mind. by the way, i happen to believe that they will start to taper. >> may be still continue to buy mortgage-backed securities.

charles: i want to say so what. charles: the more they taper -- >> the economy really is better. >> that is a great question. cheryl: will we get down to that 6.5% unemployment rate? is that the job rate that we really want? with larry summers versus janet yellen, janet yellen is more of an inflation hawk that people realize. she is saying that she will not lose the fred's credibility. charles: we still have four hours left.

[laughter] dennis: thank you very much charles payne and elizabeth macdonald. cheryl: that was a very great discussion. it has been a heck of a five years. we will be talking more and more about where we are now. how do these two gentlemen feel about the markets? marty mosby will be joining me at 1230 eastern time. he is taking a big bet on one of them. we will get the reaction to the news breaking yesterday that larry summers will not be indeed trying to get the federal

chairman. the markets today, markets love it as well. cheryl: just remember, that was september 08. you could have bought then. we have much more coming on that top story. markets surging. summer is out. we will be right back. ♪ when we made our commitment to the gulf, bp had two big goals:

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dennis: the news conference just wrapping up in washington, d.c. officials were given a briefing. then think great performing at least for our wounded in the shooting. one of those wounded was a d.c. metro police officer.

one gunman has been confirmed dead. there is a possibility that two gunmen are at large. let's get to stocks now and head to the floor of the new york stock exchange. nicole: 15,000.548. great day on wall street for the bowls out there. let's take a look at some of the financials on this. much better pictures at this point. not only are they doing great today, but also the major market averages. they really have been a group that have performed so

beautifully. nicole: i will come see you in person in just a few moments. we have this incredible market rally. the decision to implement the tarp program. troubled asset relief program. did you know that almost a lot of that money, not all of that money was actually used. we gained. all of these banks i will show you actually repaid their money. first it was citigroup. that was repaid eventually. jpmorgan chase $25 billion.

also remember morgan stanley taking $10 billion. it was also the automakers. not just president bush, the president obama as well decided we need to give money to the automakers. now, the government telling us that they believe that they will not get back that entire stake in general motors. about $1.3 billion that they most likely will not get. i do want to remind our viewers, we are waiting on president barack obama.

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♪ cheryl: breaking news it's 25

minutes past the hour. officials in washington d.c. just did a briefing on a mass shooting at the washington navy yard. d.c. mayor confirming at least four wounded in the shooting with an unknown number of fatalities. according to d.c. police chief one of those wounded was a d.c. metro police officer. one gunman has been confirmed dead with the possibility of two others. the washington d.c. police chief says the officer has been shot in a gunfight with the navy yard share. one sugar dead, and additional shares may be at large, at least 12 people have been shot, and several more confirmed dead. a report that president obama has been receiving frequent briefings. it is still not known exactly what happened inside the navy yard. in other news officials and got up to hear from 1200 people now that phone service is being restored following devastating floods. governor john hick and move reportedly says more than a dozen helicopters will be

searching today for residents who have been cut off by their high water. emergency officials say four people i confirmed dead. that is your it to one minute. back to you. dennis: thank you very much. president obama minutes away from delivering a speech on this, the fifth anniversary of the financial crisis. rich is live at the white house. >> reporter: good afternoon. president obama already about 45 minutes late, not exactly out of the ordinary for this white house. considering what happened this morning in the d.c. area, president obama, according to the white house has been briefed on the shooting at the washington navy yard, a government facility, a military facility, and one that is not all that far from the white house. i continue to see the president make the walk from the west wing to the eisenhower executive office building will you -- where he will run deliver remarks in the fifth anniversary . they will say the president took exceptional, bold, and politically difficult action to

help save the economy five years ago. already reaping the benefits in the form of job growth. the economic rescues, especially when it comes to the automotive industry, better than anyone anticipated. the economy needs more work. remains in very good shape and is in a better spot than they could have thought. more needs to be done to undo that, one would be to have a prolonged debt ceiling fight. the president and the white house continue the line saying they're refused to negotiate over the debt ceiling, something republicans say their fused said do unless they get a cat or structural reform. the president is getting criticism from conservatives on his economic record is said the government has gotten too big. that is actually stopping or slowing economic growth. on the other side you have liberals to say that the economic benefits have gone to wall street, car companies, but you are not seeing that moved down to the economic benefit when it comes to the middle-class. the administration will try to fight that. a number of folks from

middle-class families in have benefited from the year end tax deal. attempts from the government to refinance. that has been a theme for the administration. they barely do an economic event without mentioning. the other issue a number of liberals had. the administration is moving too slowly when it comes to implementing dodd-frank. to that the administration says there will push regulators to get the rule out by the end of this year. this was supposed to happen 45 or 50 minutes ago. again waiting for the president of the united states remarks on the fifth anniversary of the financial crisis. back to you. dennis: we are going to extend a little bit. it seems like the president on any other day, the mere news from the fallout from lawrence summers taking herself out of consideration, a single event

breaking enough story as it is. are you expecting the president to say anything regarding that search and likely candid it's when he makes remarks today on the 5-year meltdown? >> what he has said in the past is that it is one of the most single important decisions, economic decisions that he can make, the appointment of the next chairman of the federal reserve if, in fact, there will be in next chairman and ben bernanke does not desire to stay on and the president does not appoint him. it is an interesting take. they have long said that they have an extreme amount of respect. yesterday you saw the statement from the president saying that he had so much to do with the response from the financial crisis. the president holds him in very high regard. for him to be out of the running noting that it will be a difficult process to get him through the u.s. senate confirmation process. from here you have a number of liberals calling for janet yellen to be in that spot, not necessarily knocking summers,

but by saying that she should, in fact, be the pick, the president has had some issues. he will talk about this today. it might be janet yellen, it might not. not sure if you will make remarks about that. you don't hear that much directly from the president's other than it will be in the fall and that the president is still making his decision. cheryl: you know, cheryl casone here. one of the things that the market is watching today. the financial crisis. when you have someone, the belief on the street, the rally today, the fact that they believe that he is somebody that would have done that a lot faster. and nothing that is a fair enough assessment that he would have been potentially more negative. is that factored in?

>> it could happen. definitely more of an unknown quantity. cheryl: okay. we have president barack obama coming out right now. making comments about the 5-year anniversary of the leaning collapse. >> here at the washington navy yard. that is part of why our even today was delayed. i have been briefed by my team on the situation. we still don't know all the facts, but we do know that several people have been shot and some of been killed. so we are confronting yet another mass shootings. today it happened on a military installation in our nation's capital. it is a shooting that targeted military and civilian personnel. these are men and women who were going to work, doing their job, protecting all of us. they're patriots, and then know the dangers of serving abroad.

they faced and a mass of violence that would not have expected at home. we offer our gratitude to the navy in local law enforcement, federal authorities, and the doctors who have responded with skill and bravery. i have made it clear to my team of what the investigation to be seamless so that federal and local authorities are working together. and as this investigation moves forward we will do everything in our power to make sure whoever carried out this cowardly act is held responsible. in the meantime we send our thoughts and prayers to all at the navy yard you have been touched. we thank them for their service. we stand with the families of those who have been harmed. there will need our love and support. as we learn more about their courageous americans to die today, their lives, families, patriotism, we will honor their service to the nation they

helped to make great. obviously we are going to be investigating the early what happened, as we do so many of these shootings sadly that have happened. do everything that we can to try to prevent them. now, in recent weeks much of our attention has been focused on the events in syria. the horrible use of chemical weapons on s in people including children, the need for a firm response from the international community and over the weekend we took an important step in that direction toward moving syrian chemical weapons under international control so that they can be destroyed. we are not there yet, but if properly implemented this agreement could end the threat that these weapons pose not only to the syrian people, but to the world. i want to be clear, though, even as we have dealt with the situation in syria, we continue

to focus on my number one priority since the day i took office. making sure we recover from the worst economic crisis of our lifetimes and rebuilding our economy so that it works for everybody who is willing to work hard everybody who is willing to take care responsibility for their lives has a chance to get ahead. it was five years ago this week that the financial crisis rocked wall street and sent to an economy already into recession. it is hard to remember everything that happened. but in a matter of a frightening few days and weeks some of the largest investment banks in the world failed, stock markets plunged, banks stopped lending to families and small businesses , our auto industry, the heartbeat of america

manufacturing was flat line. by the time i took office the economy was shrinking by an annual rate of more than 8%. our businesses were shedding 800,000 jobs each month. it was a perfect storm that would route millions of americans of jobs and homes and savings that they had worked a lifetime to build. and it also laid bare the long erosion of the middle class that for more than a decade has had to work harder and harder just to keep up. in fact most americans who have known economic hardship these past several years don't think about the collapse of lehman brothers when they think about the recession. instead they recall the day they got they got a bunch of the pink slip or the day that a bank took away their home. the day they get sick but did

not have health insurance of the day they had to set their daughter or son down and tell him or her that they could not afford to send their child back to college the next semester. and so those are the stories that guided everything we have done. it is what in those earliest days of the crisis caused us to act so quickly to arrest the downward spiral and put a floor under the fall. we put people to work repairing roads and bridges, to keep teachers in our classrooms, our first responders on the streets we held responsible home owners modify their mortgages so that more of them could keep their homes. we helped jump-start the flow of credit to help more small businesses keep their doors open . we save the american auto industry. as we work to stabilize the economy and get it growing and creating jobs again, we also started pushing back against the

trends that have been battering the middle-class for decades. we took on a broken health care system, and tested new american technologist and our addiction to foreign oil. put in place tough new rules on big banks, rules that we need to finalize before the end of the year, by the way, to make sure the job is done, and we put in new protections that crackdown on the worst practices of mortgage lenders and credit-card companies. we also change the tax code that was too skewed in favor of the wealthiest americans. we locked in tax cuts for 90 percent of americans. we asked those of the top to pay a little bit more. so if you add it all up over the last three and a half years of businesses have added seven and a half million new jobs. the unemployment rate has gone down. housing market is ceiling. financial system is safer. we sell more goods made in america than the rest of our

history. generate more renewable energy than ever before, produce more natural gas than anybody. health care costs are growing at the slowest rate in 50 years. just two weeks from now millions of americans to have been locked out of buying health insurance just because they had a preexisting condition, had been sick or could not afford it are finally going to have a chance to buy quality, affordable health care on the private marketplace. what all this means is we have cleared away the rubble from the financial crisis and begun to lay a new foundation for economic growth and prosperity. in our personal lives i think a lot of us understand that people have tightened their belts, shed debt, refocused on the things that matter. all of this happened because ultimately the resilience and grit of the american people. we should be proud of that. on this 5-year anniversary we should take note of how far

we've come from where we were five years ago. but that is not the end of the story. as any middle-class family will tell you or anyone who is striving to get in the middle class, we are not yet where we need to be. and that is where we have to focus on. all of the remaining work that needs to be done to strengthen this economy, we need to grow faster, when need more good paying jobs. we need more broadbased prosperity, more ladders of opportunity for people who are currently poor but want to get into the middle class. even though our businesses are creating new jobs and have broken record profits, the top 1 percent of americans took home 20 percent of the nation's income last year while the average worker is not seeing a race at all. in fact, that understates the

problem. most of the gains have gone to the top one-tenth of 1%. so in many ways the trends that have taken all of the past few decades of a winner-take-all economy where if you do better and better weather everyone else just treads water will lose ground, those have been made worse by the recession. that is where we should be focused on. that's what i'm focused on. that is where i know the americans standing beside me as well as all of you out there are focused on. if congress begins another budget debate, that is what congress should be focused on. how do we grow the economy, create better jobs, increase wages and income, increase opportunity for those who have been left out. how do we create a better

retirement security. that is what we should be focused on. the stakes for are middle-class and everyone who is fighting to get into the middle class could not be higher. in today's hyper competitive world we have to make the investments necessary to attract good jobs that pay good wages and offer high standards of living. and although ultimately our success will depend on all the innovation and hard work of our private sector, all that great and resilience of the american people, government is going to have a critical role in making sure we have an education system that prepares our children and workers for a global economy. the budget congress passes will determine whether we can hire more workers to upgrade our communication and transportation networks or find the kind of research and development that has always kept america on the cutting edge. so what happens here in

washington makes a difference. what happens on capitol hill is going to help determine not only the pace of our growth but the quality of jobs, the equality of opportunity for this generation and future generations. the problem is at the moment republicans in congress don't seem to be focused on how to grow the economy and build a middle-class. i say at the moment because i am still hoping that a light bulb goes off here. so far the budget ideas involved primarily even deeper cuts to education ven deeper cuts that would cut america's scientific research and development. even deeper cuts to america's

infrastructure investment, rose to our bridges, schools, energy grid. these are not the policies that would grow the economy faster. they're not the policies that would help grow the middle class. in fact, they do the opposite. up until now republicans have argued that these cuts are necessary in the name of fiscal responsibility. our deficits are not falling at the fastest rate since the end of world war ii. i want to repeat that. our deficits are going down faster than any time since before i was born. by the end of this year -- [applause] by the end of this year we will of cut our deficits by more than half since i took office. that does not mean that we don't still have some long-term fiscal

challenges, primarily because the population is getting older and they're using more health care services. so we still have some changes we have to make. there is not a government agency or program out there that still cannot be streamlined, become more customer friendly, more efficient. i do believe that we should cut out programs we don't need. we need to fix ones that are not working the way they're supposed to or have outlived their initial mission. we have to make government faster and more efficient, but that is not what is being proposed by the republican budgets. instead of making necessary changes with a scalpel, so far at least republicans have chosen to leave in place the so-called sequester cuts that have cost jobs, armed growth, hurting our

military readiness, and top independent economists say this has been a big drag on our recovery this year. our economy is not growing as fast as it should come and we are not creating as many jobs as we should because of a sequester is in place. that is not my opinion but the opinion of independent economists. the sequester makes it harder to do what is required to boost wages for american workers. the economy is still slack. so if republicans want the economy to grow faster, create more jobs faster they should want to get rid of it. is irresponsible to keep it in place. and if congress is serious about wanting to grow the economy faster and create jobs faster the first order of business must be to pass a sensible budget

that replaces the sequester with a balanced plan that is both fiscally sound and finds investments like education and basic research and infrastructure that we need to grow. this is not asking too much. congress, the most fundamental job as passing a budget. and congress needs to get it done without triggering another crisis, without shutting down the government or, worse, threatening not to pay this country's bills. after all the progress that we have made of his last four and a half years, the idea of reversing the progress because of an unwillingness to compromise our because of some ideological agenda is the height of irresponsibility. it is now with the american people need right now. these folks standing behind me,

people who are small business owners, people who almost lost their home, young people trying to get a college education, and all of them went through really tough times during the recession in part because of the steps that we took and primarily because of their courage and determination and hard work there in a better place now. the last thing they're looking for is for us to go back to the same kind of crisis situations that we have had in the past. the single most important thing we can do to prevent that is for congress to pass a budget without trauma that puts us on a sound path for growth, jobs, better wages, better incomes. look, it has never been easy to get 535 people here in

washington to agree on anything. and budget battles and debates, those are as old as the republic. it is even harder when you have divided government. right now you have republicans to join the house of representatives, democrats controlling the senate, a democrat in the white house. so this is always going to be tough. having said that, i cannot remember a time when one faction of one party promises economic chaos if it cannot get 100 percent of what it wants. that has never happened before. but that is what is happening right now. you have some republicans in the house of representatives who are promising to shut down the government at the end of this month if they cannot shut down the affordable care act. and if that scheme does not work someone suggested that it won't pay the very bills that congress

has already run out which would cause americans to default on its debt for the first time in our history. and would create massive economic turmoil, inches rates on ordinary people would shoot up. those kind of actions as a kind of actions that we don't need. the last time the same crew threatened this course of action back in 20:00:11 a.m. even the mere suggestion of default slow economic growth. everybody here remembers that. it was not that one area. keep in mind initially though argument was we will do this because we want to reduce our debt. that does not seem to be the focus. now is on obamacare so let's put this in perspective. the affordable care act has been a long for three and a half years now. it passed both houses of

congress. the supreme court ruled it constitutional. it was an issue in last year's election, and a candid and call for repeal lost. [applause] republicans in the house have tried to repeal or sabotage it about 40 times. they failed every time. meanwhile, the law has already helped millions of americans. young people who are able to stay on their parents' plan until the age of 26. seniors who are getting additional discounts on prescription drugs. ordinary families and small businesses are getting rebates from insurance companies because now insurance companies have to actually spend money on people's care instead of on administrative costs and ceo buses. a lot of the horror stories that were predicted about how this

was going to a sheet rates way up and there will be death panels and all that stuff, none of this happened. in two weeks the affordable care act will help millions more people. and there's no serious evidence that the long, which has helped to keep down the rise in health care costs to the lowest level in 50 years is holding back economic growth. so repealing the affordable care act, making sure that 30 million people don't get health insurance and people with pre-existing conditions continue to be locked at of health insurance market is not an agenda for economic growth. it's not going to need an economist says that is the number one priority in terms of boosting joy of -- growth in jobs in this country, and is not as serious economist.

and i understand i will never convince some republicans about the merits of obamacare. i understand that. and i'm more than willing to work with them where they have specific suggestions where they can show it will make our health care system work better. initially this was like repeal and replace. the replace thing has kind of got off to the wayside. now it's just repealed. the larger point i that we have been through these last five years, after all the work of americans like those standing behind me have done, to be back from the depths of a crisis, some of these folks really sold -- so beholden to one extreme wing of the party they're willing to take the entire economy just because they cannot get their way on this issue. i they're really willing to hurt people just to score political points to mac i hope not.

but in case there is any confusion, i will not negotiate over whether or not america keeps its word and meets its obligations. i will not negotiate over the full faith and credit of the united states. this country has worked too hard for too long to dig out of a crisis just to see their elected representatives here in washington for because another crisis. let's stop the threats, stop the political posturing, keep our government open, pay our bills on time, pass a budget, work together to do with the american people sent us here to do, create jobs, grow our economy, expand opportunity. that is what we need to do. [applause]

and as far as the budget goes, it is time for responsible republicans who share these goals, and there are a number of folks out there who are decent folks. i have some disagreements with them on some issues, but genuinely they want to see the economy grow and what was best for the american people. it is time foes republicans to step up, and they have faced -- decide what they want to prioritize originally they said their one a deficit reduction. deficits are falling fast. the only way to make further long-term process on deficit reduction that does not slow growth is with a balanced program that includes closing perhaps -- tax loopholes at the expense of the middle-class. as the only way to do it. [applause] they said that they wanted the entitlement reform. but their leaders have not put

forward medic, or social security ideas. i have put forward ideas for sensible reforms to medicare and security and have not gotten a lot of feedback yet. they said that they won a tax reform. this was just a few months ago. this will be one of our top priorities, tax reform. six weeks ago i put forward a plan that serious people in both parties should be able to support, i deal that lowers the corporate tax rate from businesses and manufacturers, simplifies it for small business owners as long as we use of the money and we save to invest in the infrastructure are businesses need to create more big jobs and good wages for middle-class folks who work at these businesses. my position is that folks in this town want a grand -- grand bargain, how about one for middle-class jobs. so i put forward ideas for tax

reform. have not heard back from them yet. congress has a couple of weeks to get this done. if they are focused on what the american people care about, faster growth, more jobs, better future for our kids, i am confident it will happen. and once we're done with the budget let's focus on the other things that we know can make a difference for middle-class families laurin the cost of college, finishing the job of veneration reform, taking up the work of tax reform to make the system fair and promoting more investment in the united states. if we follow the strategy i am laying out for our entire economy and if washington will act with the same urgency and common purpose that we felt five years ago our economy will be stronger. a year from now, five years from now, a decade from now. that is my priority.

all these folks standing behind me and everybody out there that is listening, that is my priority. i have run my last election. my only interest at this point is making sure the economy is moving the way that it needs to so that we have the kind of broad based growth that has always been the hallmark of this country. as long as i have the privilege of serving as president i will spend every moment of every day i have left fighting to restore security and opportunity for a middle-class and to give everyone who works hard a chance to get ahead. thank you, everybody. god bless you, nablus' america. [applause] >> president barack obama talking about not just the five-year anniversary of the collapse of women, but the economy today and that congress has a debt ceiling debate they coming up and he is hoping that congress will work together, but taking this opportunity. as we looked five years ago, the

markets today rallying on the fact that larry summers is not going to be pursuing the chairman of the fed. now, i do want to bring in three gentlemen that have been monitoring the president's comments with me. of course seaport's security, also with me as well. really quick, i want to ask you. the president is saying that we have a long way to go five years later. do you agree? >> adelle think we should make short shrift of how look far we have come. here we are on the s&p 500. gdp could be higher, but it is the highest it has ever been. let's not lose sight of how far we have come. cheryl: do you agree or disagree? >> we are about halfway. we have dealt with the credit. recession. now we see a need to see is economic growth. higher interest rates, loan

growth. again, looking for the growth side of this recovery. we have been through the trouble spot. cheryl: you like the banks, bank of america. i know you have been watching the financial sector from an investment perspective. the trading perspective. the dow is up 34% in changed from where we were five years ago today. even more so if you take out the lows of 2009. do you feel good about where the market is right now? >> clearly if we could do a deal over, when it be nice? in those days people were scared to death. wall street typically when it holds a fire sale everyone is afraid to come. the market, the performance of the market has been remarkable when you think where we were during that time from and where we are today. whether it is justified are not, of course, that is in the eyes of the beholder. i would say that the pieces are in place. cheryl: all right. i want to thank you for joining me