neil: j.p. morgan paying more than $900 million fines but who gets the money? welcome, everybody. i am neil cavuto. i can almost picture in a bunch of bureaucrats gathered around to divide the spoils after hitting j.p. morgan chase with fines they are carving up salute 300 billion for the office of the comptroller of a currency 200 million for the federal reserve another 200 million of the sec and another 200 million of what i think our asinine ackerman's -- acronyms to take whatever they can get

the regardless of your feelings what are these agencies going to do with the many? help investors or help themselves? history suggests they're not about making investors will especially no investor was hurt they are doing fine the regulators that should have caught this to make a whale of a killing off of this just as they have off of every pound of flesh that they have only gotten themselves it is amazing those that demand a vigil accountability do not care about the city and themselves. then assessing this -- the things that pile of the debt to the stupid taxpayers that are offered financial advice

we have david yasmin. where is this money going? >> as you describe the situation will we have complained a lot about overtime, like the federal regulatory agencies are bounty hunters they get money to track down the elected wrongdoer's so you have to wonder why is it like firms like j.p. morgan and settle the cases? it can spend as much as it once now it is even more money but i understand the reason for penalties. they lost billions of dollars the people hurt or at jpmorgan so what is the purpose of a penalty? neil: that makes it too much sense. >> but he is at the heart of

the message that what is wrong with everything that somehow everybody should be protected from the government for anything that goes wrong even if they don't lose the of money as a big corporation. but sometimes things will go wrong somebody will screw up and lose money idled think those bureaucrats are the ones will figure out how to do a better than the geniuses that a big investment bank. neil: we have cover this for a long time if i had a dime for every fine i would have millions of times. [laughter] i don't know where the money goes i can understand the argument by after bertie made off to make them whole but they're still standing in line someone has that money. who? >> it is a curious situation

like federal prosecutors are paid if they bring back the guilty verdict it is a strange, i have never seen anything quite like this to give superpowers to the regulatory agencies in many cases not even in wrongdoing but a shakedown. >> is to feed the bureaucracy itself one thing it has done we have not even talked about that financial consumer protection agency that elizabeth warren created they decide how much their own budget is in accountable to nobody but the new entities were created under dodd/frank don't have to fill those -- now they have to fill those. neil: and justify the existence then it is like a politician with the laws and rules and regulations.

>> we get back to the agency's to put somebody in jail if they break the law. you don't want to have been in charge to make in insurance company more efficient because those people know more about it. >> here is my frustration but these companies do have an idea not to lose money. neil: also a government that doesn't even know the concept. >> i don't get the purpose of these kinds of lines. they may not have lost money but it took a big hit with a reputation those said to lose many companies are not in business to lose money for the shareholders. >> but losing a customer if the world finds out

eventually lose customers that has a much stronger very fact -- effected. neil: and simmons were committed it was under the guise of a government that was supposedly watching. >> i am in favor of going after fraud but i don't think that is what is taking place is just stupidity on the part of jpmorgan there is a big difference to defraud your shareholders. neil: will pledge. i speak for these gentlemen we're not apologist but what we say is if you find someone told us what you do with the many how you propose this will happen again? does this just the winter will lock box that is not there? in to assume this is not the last look at the politicians

up to the bar including elizabeth warren who promises a day of reckoning is one fellow who did not become the big apple mayor who will go after those in the york also no wonder businesses are giving up on the politicians too much static but too little sense? here we go again. >> here we go again what is happening here is crazy the government is slapping the hand that feeds them. they do not generate on their own any revenue they come from taxpayers and what have we created? there is a tone of class envy, class warfare as politicians find they can score political points by creating a scapegoat by

jpmorgan were corporations or wealthy individuals. what is happening is they are finding the government taking a vintage of scapegoats. neil: i have no financial interest in the company but i will say that the government was the entity encouraging them to lend more so they overdid it over packaging risky loans and shaw occupies they cannot pay them back so the government says you over did it so they tighten up then this continues. you cannot blame the financial institutions to have that shocked look on

their face. what you want? >> yes u.k. and that is what the government has done. they are the scapegoats that is what happened. >> since when can the government pick winners and losers? this country has always been built on capitalism and fairness to create opportunities for business to succeed but it is the marketplace that determines winners and losers, not politicians. neil: that the pay attention the bad guy is the culprit less people work -- look back at us? >> the government does not want to put their hand up to say this is our fault but to a certain extent it is a major faults of the government's that has created the financial doldrums with the economy we

grow at 2.5%. until we can start growing this economy at a much more reasonable pace, and so we can start creating jobs we will be with these programs for some time but it is the policy of taxation and regulation that has kept us your -- hear. neil: now there is a concerted effort of local officials in a new york to target does that trend were you? >> sure. the only way we will get out of the financial doldrums is to let corporations create wealth the way they did eight years ago. >> even when they hear the president speak.

i think they have given up that we will keep getting creamed we will be deferential but not big fans >> clearly there is a lot of truth to that statement. he will not be supported by those of large business but that is what is happening with the government. neil: thank you very much. never getting serious about spending cuts they are still complaining about sequestration and. the cold hard cash.

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for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. but it doesn't usually work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decisions. that's health in numbers. unitedhealthcare. neil: if not for sequester more may have lived that is what the mayor argued right after the shootings in his city because staffing was

compromised. of the former bush and reagan treasury offical, david this is what is problematic. whatever your views if we still fight over $55 billion debt to cut in a multibillion-dollar economy in one you have to do more meaningful cuts it will never happen in. >> that's right. it is a dodge we have $1 trillion spending problem and they still find about 55 billion. >> right now we are not spending problem the democrats have taken the view that it should spend more it is a pure

confrontation on that ground for people to fight this in public to say the majority of americans want some restraint and a bond that to make the message goes through. >> one that was particularly brilliant is that you counter the view cutting spending will lead to a recession choking the funds of the private sector but the public contrary to mainstream media reports have not happened in a choke the private sector? >> look at greece where it has disintegrated into they would be in a much better

position today. neil: you are you by hiking taxes that was stingy in the private sector and compound the problem. >> people say they don't want austerity because our hurts grows but what they've been is the austerity of the higher value added tax. >> neither current cuts for the future cuts if he were the private sector we have come later version that businesses are not investing because the government spends so much at many so that is the point of that restraint so the private sector has room for growth -- for growth.

neil: he says raising the debt limit is not the same? >> there is a problem the way the law is written hurts fiscal conservatives it was written as a concept to give washington more depth -- the whole purpose is to raise more debt they wrote it with the rule for one so swimming upstream to use the debt limit to block obamacare is very hard to do. neil: ises zero sum game? to make the president won't except that so what i think needs to be done is republicans need to put for dave made use of restraints including the debt as the fed issues massive amounts of debt that is not counted right now.

a and several other things. neil: you argued one of your pieces that people fear the debt will be downgraded but if they work and have talks to resolve this problem that will not happen? >> there needs to be a negotiation with the president discusses ways to restrain government does not want to do that. neil: but the shutdown is not the automatic trigger for the default? >> if you are not to with me that you are for the default neil: what happens when you can make payments? >> usually they say if you don't make payment on the debt that is a separate computer in washington there is no risk of that. the reality is a government shutdown will not play well for republicans.

it would be a better strategy to put several things on the menu to get the president to come to the table to think about ways to restrain government. neil: the being health care off? >> can be on their also include the debt with the massive trading of the deficit. get the president called. neil: you makeweight too much sense. he makes you think just because we extend the debt limit doesn't mean we push the limit will all for raising the credit line makes you think he is losing his mind. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement.

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>> in the world or other financial network support

you to tears this monday n new neil cavuto purveyors on prime-time tv. we will never be the same. a new and improved cavuto. neil: coming monday. many have you thought those people outside were not for you. >> yes they were. in the meantime raises but don't worry because increasing the debt limit does not mean we increase our debt technically he is right just like when it raises your credit line from 20,000 from 25,000 you have not spent that money but they figure you will and generally you do. generally it does all the time. it will happen again this time it risks the solvency

playing a more serious game. to the president's comments what did you think? >> this is the disingenuous commentary coming out of washington the idea to raise the debt limit was allowed to the government to increase their spending so they would increase the limit without using a credit neil: that congress appropriates -- appropriates there spending. >> but it does increase the debt that the government takes on. neil: you just blow it off or shut the government down? >> bring both sides together to see a reduction. neil: they hate each other. >> true. then have the shutdown until we have reasonable long-term solution.

>> i like the scope but the problem is it doesn't stop you for borrowing money or accruing debt that is a problem if you use the credit cards give babies the car and use my credit card we're not raising the credit limit but i still should not least the car that was the problem and until you address that opening night your credit card bill is not a solution. we have to address the core issue if they use it as a tool to give the minority party power than the solution to raise it means and not to make it keep going up keystone or obamacare will not stop. >> did you recognize you cannot afford the car and the company does not raise the limit did you return the car. i cannot afford it. >> that is the solution what

do we do. neil: why would you ever lease anything? [laughter] >> we have to say these of the cuts to not keep raising but if you do this i would raise that. neil: what do we do if we go to the brink? that was said the fact doeth years back. not so much who was doing what but no one was doing anything that chicanery was continuing with the kabuki theater dance. your point is what do we have to lose? >> more a reflection we will do the same issue every year we have to go through the shutdown and forcible sides -- force both sides.

>> it is a bad thing not to pay your debt. neil: but it is when you make good on social security or medicare payments that is an obligation to. >> that is accruing so that is accruing regardless we know those people many. we have to stop accruing the medicare, social security. neil: that is a long-term problem if we don't address that we will never solve the. >> the underlying structural issue that no one wants to take responsibility for. if we do have a government shutdown to force our representatives to make the difficult choice. neil: no, no, no. we will not do that. >> if they choose not to raise it is is still slightly better because you have borrowed too much? there is one thing worse

than artificially not raising the limit. >> what is the long term solution? >> we cannot borrow money. >> that we have the ability to print we will never default we should give you $1 trillion to buy one loaf of bread we can give you those the beckett can get worse. neil: on monday will get better because what i can tell you is we will come up for solutions of all the problems in the hit of the. every night. rather than be bound part of the new reconfigured is in the guarded the five years fly by with the oil pipelinesh ?

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a better opportunity for your business, a better legacy to leave the world. we have always believed in this pursuit, striving to bring insight to every investment, and integrity to every plan. we are morgan stanley. and we're ready to work for you. neil: still stuck in park. >> the keystone xl is still under deliberation. all the questions regarding they are understood. >> but potentially what are the dangers? >> allowing it to be built it would be in the nation's

interest. >> with the oil pipeline coming down from canada that is not a jobs plan. neil: where do get that number? the keystone pipeline is still waiting but from the chamber of commerce can i ask you that we're is he getting that? >> it is hard to explain with those 50 jobs you don't need many people to watch a pipeline but he doesn't say all of the manufacturing jobs the real jobs he is looking to create he is ignoring them.

neil: then your argument even now five years after the fact going without this thing maybe we don't need it and you say what? >> it will create 40,000 jobs during construction that is where labor supports this and $5 billion of state property taxes sam the governor supports it and $5 billion of investment by business supports it and by the way, 70 percent of the american public supported. 2.the phrase of the prime minister of canada is a no-brainer so why haven't we already done this? neil: he has made clear we will find someone who does and the chinese is that of failed stretch or a real possibility? >> the demand for oil around the world will go up and we

better start being more self-sufficient here at home the premier has been cleared dedicated to helping her citizens issue plus a full faith and credit behind them a $500 million on the table to help this will move to the east coast of canada now they are moving in they will not wait. we have the car are installed and they are starting to go. neil: waiting for a way to comment this is the best that we can do. >> the state department's goal has always been to conduct it in the right way as part of the review be looking enumeration in responding to public comments. of think anyone would fault them for rushing this but what the thing five years after the fact it is like

syria of steroids. >>. >> they degenerated 15,000 pages of analysis and answered every question. neil: bigger than the health care bill. >> field hearings come in washington hearings, and meetings, comments, what else is there to know? every governor is on board the public is on board. the safest pipeline we will ever build. wateree waiting for? i guess we listen to the fringe groups and are opposed to people having affordable energy? i think america would be really offended by that. neil: the more i hear of the middle east the more i think about that here.

this puts the big symbol up there for the investment community is america open for business? we cannot do something this commonsensical what else will we do it is important to get this right. neil: thank you. five years ago the markets were in the middle of a free-fall. how many never got out? thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

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points the dow jones industrial average we have seen the market correct 20%. >> a lot of panic and fear nobody is comfortable they're comfortable to sell stocks. neil: remember that? one after another who would ever envision now rocketing? after someone in addition that the rate we were going. the rethinking of these reminders now that they do not at me that investors should. but sometimes it takes so long time. >> we're clearly better than we were so it is a great

learning experience but for investors that is a unique time with a 50% decline it was more focused on the nasdaq and the internet stocks it was far reaching an end people panicked you use that as an extreme level of fear it would emotions get involved people lofted act in ways that were irrational and people make bad decisions. if you were in a cave do extremely well over that time frame and now of course, the biggest concern is a big recovery like we have had with the low volatility with a 10%

decline now they are sold into complacency which is the opposite so now it feels good to invest is when you need to be careful. to help keep your emotions in check and for a lot of people. neil: but what do you tell the clients? that i just have to root get out. how soon do you need the money? so the better part of valor is get out? but generally in the experience 2001, and they denied it is weighted out to your point to a 2008 to do very well but the estimate french saying it cannot get

over. >> the market already reflects your worst fears. by the time you went to do something it reflects what you're thinking unless it gets worse it is already priced in with people expect to have been. to price and the collapse of the banking system this is my refill to such incredible lowe's. >> with the world coming to an end the smart money is already active. because if i do now is not the time today's hearing exactly the way i was. it can be anywhere from 20 or 50% so we're right on the button.

and talking down the market the whole way up that maybe it is different issue get invested. timing matters you should work to carry mushes instead in the way to talk to off the ledge. that is the job of a good advisor. neil: he is right with every single crash we just wait and called down. now i can understand why. what is yet to? i am telling you.

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neil: they said in college she was temperamental and billions of dollars later unpredictable for the republican in new jersey governor crist christie now with a stein with the nancy pelosi. the sector berg is pretty good to playable sides. >> we do know he has

something up his sleeve it with a five-year university do you realize zuckerberg was of the 24 years old when the market crashed already has more many in more play than we will ever see which is an amazing fact. he is skilled know why is he making frequent trips to washington? >> i think it has to do if he is big on immigration reform. into get back more from here but there is more to web. and then watching too long they think bill gates acknowledged that he cultivated ties period early in his career made at have felt run into the resistance that he did. >> i think that is it and realized smart is very skilled and he thinks a lot

but when he realized they are not republicans or democrats unplayable sides but he has grown up but this did frustration is not business friendly. so they're being held hostage right now and decker berg sees that happening. some aviation place size of the republicans alike can get my a high skilled workers to work for me now that the expense of those coming over the mexican border also back in the spring facebook join google to sue the federal government they're very upset of the nsa and fisa. neil: maybe he protests too much but time and time again we realize there happily provided the information

that they wanted and we begin to wonder if this is just his part to show what to say i am concerned and i am on my customer and shareholder side? >> i give credit because he does what others do not instead of separating himself to not interacted he realizes to play you need to have washington in your back pocket. %->> but i wonder if he still has on his sneakers. >> you have to take stock ain't life grand?

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we're making it. >> 800 million overnight for endgame felicitate to interactive software gray and theft auto making more money in one day than any game anywhere, at more than despite all the violins are because of all the violence? what do you think of this? >> not just violence it is good. i am old enough to remember coleco vision expensive going back 1984 it has come a long way. today video games like movies in better than that

in the tradition of "star wars" full ivars sinn entertain is so not surprising that not all games are violent even as some city they are big business. >> just looking at the genre who is the leader? >> costing 60 million to produce during 3,940,000,000 in one day they will do 23 million i think it is a great franchise. another violent realistic game call of duty those are perfectly primed. >> it doesn't say anything about the because they can put down for what is a game.

>> during the great depression many people found escapism that the great movie houses to escape their troubles now today even $100 with hours and hours worth of play? they may be terribly violent but people enjoy them and those that played them will not be violent. there is a lot of escapism that people enjoy and it is cheap entertainment. >> is entertaining and liquor that never go even during a recession. the game is violent but remember we played a soldier and cowboy they do the exact same thing it is very realistic i take it is exactly what kids have done since the very beginning of time.

neil: there is a little bit more blood and guts. >> allot more realistic aspect. >> what would you know about make-believe violence? come on. [laughter] >> you are so lucky he is not in that room with you. >> at least in my opinion price line hit $1,000 per share that is berkshire hathaway league because there are not too many stocks and over $1,000 but there are thousands of travel sites is william shatner the key? >> this is like $1,000 in in

the head end revived through the wonderful marketing campaign and has $1.6 in earnings over the trading 18 times earnings but they bought to a other companies in europe and asia respectively. >> the reason is it probably should have gone away but they did a reverse stock split in 2003 and the company was left for dead thanks to the innovation and william shatner they have prospered but it has been a tough road for the long-term holders even now it is just back to where it was when add the ipo in 1989 -- 1989. neil: they are fading fast now thoroughly and

outsmarted by betty else now blackberry lays off 40 percent of the workers. who is the next to black perry? >> i think it is the state of new york it is a financial injun delicate the municipal bond funds they have done terribly this year so if i have to shore so anything unfortunately it would be the state of the york. >> i think blackberry they came back and most don't doing a wonderful job back yah hoo they have a wonderful future but apple and samsung have to go over the market once you go that direction you rarely ever turnaround.

neil: i just wonder there at the top of the heap not that long ago for gannett. >> everyone is foldable and in a free market nobody is on top and blackberry is the best example coming down to leadership and innovation they can bring the new technologies if your locale far they, they will be it is up to the innovators to make that happen. the love we have tomorrow. all charges dropped remember being dragged through the press? tomorrow he tells us.

here end of the year the former house majority leader is prepared. >> bring it on the age of innovation when everybody has access to a global market radius flourish. >> want to go to mars? is this a good idea? >> plastic guns to making your own home. >> politicians are threatened by the money they cannot control. >> the first digital currency. >> zero things that could transform life as we know it. transformation nation. tonight.