anthony scaramucci. we have coverage all day long on fox business. "varney & company" begins now, stuart, have a good show. over to you. stuart: thanks, maria. when there's a big market selloff, mondays are often the darkest of days, and today is no exception. good morning, everyone, it's a tough day. if you have money in the stock market, watch out below. the dow may be down 670-odd points when trading starts. it dropped over a thousand last week. this ranks up there with 1987 and 2009. china is the trigger, another drop there and fear that beijing may have lost control of the market and any economy that relies on oil revenues is in deep, deep trouble. watch this action unfold. watch it here. "varney & company" is about to begin.

♪ this is appointing to how things open in a half hour. down, way down. this is dow jones industrial average futures. it's a look how things are going to work out 29 minutes from now. we're going to be down around 675, that's a significant 4% drop, it's huge. look at the price of oil. fresh 6 1/2 year low, 39.03. now at $38 again. and that, go en, is a huge selloff, but i want to trigger right at the start and get into the drop in china. look at these declines in asia. starting with the shanghai at the top down, 8 1/2%. hang-sang index, hong kong, japan down 4% and south korea 2%. mary kissel is right here.

all right, china, there are reports-- there's speculation that the government in beijing has lost control and that's scary. >> well, i don't know about that, stuart. look, china may have been the trigger for a reality check for the markets. what has happened over the last six years, you had very low interest rates that let governments all over the world and china were particularly big spenders, several times what happened in the united states. the low interest rates let government spend and borrow and tax and in the united states, huge regulations on the productive parts of our economy, on the coal sector, on the elk had sector, on the financial sector, for hadden profit education sector and we needed one trigger event for investors to wake up and say, wait a second, where is the growth here? there's no growth. when you talk about inflation, well, we had inflation, it was called asset inflation with the low interest rates and people went into stocks, they went into commercial property and i think what you're seeing today is investigators, because of china, stopped and they said, wait a second, where is the growth?

>> china is the bursting bubble. >> that's right. china is the bursting bubble. >> without a doubt. you've got retail investors and you've talked about this, stuart, the markets in shanghai, they're mom and pop retail investors, mom and pop, they don't base their bets on the market on what's going on in the economy, they base it on what's going on with the government. stuart: that's right. >> when they know that the government is out of options what to do to prop up the economy, that's where we see the huge selloff. >> 8le 0% of the shanghai market is owned by the small retailer. >> that's right, but remember, ping was never a reformer, the first thing he did when he came into office was consolidate his power and made it harder for foreigners to update and transfer. he devalued the currency and encouraged stock market speculation and the low government borrowing continued. that economy and that growth wasn't based on real supply

side reform. stuart: he is the emporer, the chinese emporer with no clothes. that's what happened. ashley: that's right. stuart: of course, their problem now becomes our problem. we're going to open down, 670 points after 1,000 point drop last week, 15 is the first, the handle, it's going to be the handle right there. look at the price of oil. it's still below $40 a barrel. it's falling. it's 38.99. come in from london, former shell oil, john hofmeister. how much lower? >> nobody knows, that's the answer and frankly, it's out of our hands now. it's out of the hands of the industry, it's really into the hands of the traders, the traders will do what they do. the perception a glut is much bigger than the reality of the glut. every day, stuart, we need 91, 92 million barrels of oil to keep the world going, even in

the face of the reductions that we're seeing in the economy in china. 92 million barrels a day, that's a lot of oil, and it would only take a couple of days to eat up all of the surplus that's out there and we could see the lower the bottom, the bigger the bounce. >> okay. the price coming back. >> okay. right now, it's $38 a barrel, 38.90. let me ask you this, you used to run shell oil. you know a thing or two about petroleum economies. what's the effect of petroleum economies from russia to saudi arabia to venezuela to nigeria. presumably they're in terrible shape because of this? >> well, i think that there's a strategy here going on with saudi arabia, making sure that iran and russia pay a huge price for the way in which they are meddling in the middle east. and i really believe that is the case. but meanwhile, as an oil executive, the first thing you do, you just cut costs. you just don't spend what you

don't have to spend. and take it out, if it continues, out of the three-year, four-year, five-year time frame and if it's further you stop development in the later part of the decades. you retrench and pull it back in so you can survive as a company on the lower price levels. that means layoffs and canceled projects and supply chain is pressured for price reductions and that means everybody suffers, except, stuart, the consumer. the consumer has a field day. stuart: and we've often got bark backward and forward, i think that $2 by the end of the year. you've got 20 seconds left. you still disagree with me about the price of gas for the end of the year? >> i think we will see $2 i agree with you there. but don't be surprised if by november, december, we're looking at spiking prices.

stuart: john, i will be astonished in i see spiking prices in november and december. i pay off on the dealt debt. nicole petallides, i'm looking at a loss of almost 700 points. nicole: unbelievable. last week over 6% on the nasdaq. there was a hope that there would be a turn around today. the traders said on friday as they were walking out the door, they were going to look for china. what are we seeing, 8 1/2% selloff the worst we've seen since 2007. so that being said. they're coming in here this morning, preparing for an opening of down 4%. they're watching, by the way, the circuit breakers. if we're down 1100 points basically, then you have a halt of the entire market, let's hope we don't get to that point. but, there are some people who are saying, hey, you liked apple at 130, you must love it at 105. there are people that are going to put money to work this week

and there are people, one of the traders said i'm hedged on both sides. there's a waited and see mowed and those looking for where they're doing some tickets. not surprised to see it go down. >> we'll be back to you very, very soon. i'm looking for people who think that apple at $98 a share is a good deal. i'm looking for people who think that. ashley: this environment it's tough to jump in, but-- >> yes, takes a strong stomach. but if you look at a little history, i was actually on the edge 1987 stock market crash and went down 20 odd%. do you realize the dow industrials closed that year higher on the year after that crash of october 19th. that took place. >> the thing is investors have relied on the fed in the obamacare a to come in and to buy. every time the fed said, oh, we are a standing pat, the markets would go up, but that's not true anymore, stuart. stuart: it's not possible any longer. ashley: no. >> they were relying on an artifical boost to the markets.

the fed may not raise rates the next time around, that's not a good sign, that's a sign of weakness, so this may continue for a while. stuart: down 719 points, looks like. 722 as we get closer to the open of trading which is at 9:30, that is what, 21 minutes away from now. again, i'm looking to see if people jump in at some point for what they think is a bargain. ashley: the other point to consider here, is how much electronic high frequency trading playing into this. are there programs out there, you hit a key level, a sell button? in the old days it wasn't quite like this. we're seeing gathering momentum. and i think a lot of this is electronic trading. stuart: it acquires is internal momentum of its own and pushing it down. at that point sooner or later, some people say apple 90 od dollars a share is a bargain, get this thing, please.

down 717 as we speak. the price of oil, that's another thing that leads us down, and it's down today. $38 per barrel. it's historic action on the markets, yes, indeed it is and now, donald trump. he was on fox and friends this morning. listen to what he said about hedge fund managers. >> well, they're making a fortune and i want to take care of the middle class. you know, we had a tremendous rally in alabama and people came up and said you're treating us fairly, the hedge fund guys are paying nothing. they're paying nothing and what are they doing? you know, one thing if you're building buildings, take a little bit of something, build buildings and put people to work. the hedge fund guys move around papers and many, if the market goes up if they're geniuses. if the markets go down, they go into a different business. stuart: well, they pay a capital gains tax rate lower than the incomment tax rate. ashley: compared to 39 something. stuart: i think that trump is jumping on the band wagon of bashing wall street. ashley: he is and also jumping

on china, too, stuart. because that's the big-- >> wait, let's hear what he actually had to say from trump on fox and friends on china. >> frankly i'm the one who says you better start uncoupling from china because china has problems and big problems and they're thinking us down. stuart: how do you uncouple from china? how to you do that. ashley: you can't. >> and he doesn't like globalization? he doesn't like competitive comparisons? that's an absurd comment. stuart: it is, you cannot uncouple just like that. >> and no one-- it wouldn't be good for anyone, not good for our economy, the global economy and their economy. stuart: now down 723 points, pointing in that direction, pointing, okay? this is not set in concrete. that dow futures indicator moves up and down very, very rapidly. when we went on the air at 9:00 precisely, 11 minutes ago, we were down about 640 points and now it's 742 points. ashley: down 111.

stuart: you're talking extreme volatility. be careful of that. don't imply it's worse than it actually is. ashley: the volume today, number of people buying and selling shares, not many buying. last friday was the busiest volume-wise of the year and basically see if we have that kind of conviction today. stuart: we've had various forecasts on this program and others on fox business, about what's going to happen on this market. and anthony scaramucci, a money lan manager himself on maria's show suggested by the end of the year this market would be 3 to 8% higher than where it is now. that's quite a prediction. we also had shah galani, last week and last night, did a special on the show, down 20%. the forecasts are all over the place. you're on your own. and he manages money and think or say about this, and okay, are you going to be doing any buying at all today?

>> we'll be buying and selling, stuart. it's one of the situations that we talked about this last night, what we try to do is upgrade the portfolio, call the portfolio of weak securities, that are just not making the grade and it's an opportunity to buy some of the companies that you missed at great earnings reports, but are being down today and all last week by this market. stuart: what about some of the big names that are really beaten up? i'm thinking of netflix and apple, how about those stocks? would you put your foot in the water there? >> i certainly would look at apple. i think some of the higher multiple stocks like netflix are going to be under particular pressure and i have an issue with netflix, a great company, but priced as though it will never have any competition. i was in a hotel last night, stuart and passed a table with probably 20 kids with laptop computers and every one was an apple. i think that apple is going to be okay.

stuart: the key test,david nelson, would you buy apple today if it drops to 95? >> i absolutely would. stuart: there you go. >> there you go. stuart: 95 is a buy signal for david nelson. okay, keith fitz-gerald joins us now from seattle. by the way, now we're down-- and listen to this, the futures show an 800 point drop at the opening bell in 16 minutes' time. 809 points and counting and i see interest rates tumbling, treasury bonds, the 10 year bond 1.95%. a tumble in the yield and a tumble for wall street in a few minut minutes's time. keith, your analysis, real fast? >> the fed has failed markets and traders are taking matters into their own hands and can't understand the uncertainty. i wouldn't get too worried about it if you're a long-term investor. be cautious, but now is the time to act. stuart: would you buy apple at 95, if it went to 95, i don't

know whether it will or not, but would you buy it? >> no question i would recommend ample at 95. >> anything else? big names. you've been on the show all the time and we concentrate on very, very big names. which big names would you buy and at what low price? >> i tell you, i don't have specifics right now. the markets are moving fast. the list off the bat. netflix and google, amazon and consider microsoft and look in the energy sector, williams kinder morgan, quality companies for which the short-term business case is intact. this is a market movement, not an economic one and that's a big distinction. stuart: as for the small investor, mom and pop, people sitting on some retirement money or college savings, sell or hold tight? >> if you can afford to hold tight, obviously, that's what you want to do because short-term aberrations come and go, stuart. we've talk about. if you have to sell and a liquidity event, unfortunately

not a lot you can do about that. hold tight if you can. stuart: what would you be actively selling into the decline? >> well, we've got a list of things that i've talked about frequently. for example, twitter, shake shack, less than quality stocks, weak money driven by highs. anything that's nice to have, it's gone right off the table and that's something we knew coming into this mess. but the quality stuff, we want to hold on and add to, if knob. stuart: okay, i'm looking at the futures, which are declining rapidly as i said, 16 minutes ago we came on the air with futures indicating a 640 point drop. now, 16 minutes later, the indication is for an 85 # point loss. extreme volatility. keith, for the average investor, you must sit back and watch. surely that's the name of the game today? >> well, if you can afford to do it, that's what you want to do. the worst i think you can do is panic.

i know it's counter intuitive. that's what wall street watches, this is taking it out to the cleaner, taking the fed to task. if you've got the ability and right perspective, three to five years, this is going to be a speed bump, believe it or not. stuart: mark is with us, mark welcome to the program. now, are you telling me that you called this action today? >> well, i did a blog over the weekend putting-- sharing some parallels to 1987. even though we're not down the amount that we were in 1987 percentage-wise, this is a pretty big decline. stuart: and the parallel would be, mark, that back in 1987, there was a huge downside move on thursday and friday, the really big move came on the monday, is that the parallel you're talking about? >> well, yes, that's the-- basically speaking, but there's some things internally that were very consistent with '87. stuart: back in '87 the market

finished the year above the crash level. well above it, in fact, i think it gained ground on the entire year. are you predicting the same thing for the dow this year? >> well, woo he -- we don't know how far it's going to fall, but type of trading very quickly because put volume had exploded on friday and i'm sure it's going to explode more today. so you have a tremendous amount of fear here and that's probably going to lead to some type of stabilization, but we don't know how far it's going to fall before that happens. you don't want to jump in here and start buying because the market is down. stuart: well said, market minn minnervini. >> that's the important point, what is the floor? it's not just china, it's not the united states, it's europe. europe had a debate about austerity versus keynesian government spending. they didn't discipline greece. there was no fiscal discipline there. where do you find the growth? where is the safe haven here?

you showed the oil price, to me, what that's staying is we're recognizing that global gdp is shrinking. the growth is nowhere. >> scott shellady from the cme, come in, please. can you describe this as an element of panic on your exchange? >> no, like i said on friday, it's maybe that the celebration of the ration l a man. a lot of guys behind me may say they've seen it coming. when we were at all-time highs, nobody could look anybody in the eye and say that the economy is selling at all time cylinders, it's a good thing for the market and obviously, people are going to have pain here. because fed pushed mom and pop, and the reason why we're seeing it react as much as we have. >> we're looking to attach some blame here, are you saying that the fed is taking some chunk of the blame? >> absolutely. haug 24th, 2015, is the day

that the fed has lost control. >> whoa. stuart: that's a strong statement, lost control. does that mean that they've got no tools left in the box to fix this thing. if they tried printing more money, that's not going to work, if they try raising interest rates, that's clearly not very good for the market. you're laughing. why are you laughing about the suggestions that they raise interest rates? >> i can't believe people are talking about it. it's definitely not happening in september and definitely not happens in december and every time they buy more time and only puts them in more trouble. they've painted themselves into a corner, there's nothing they can do. stuart: how about china? same story there? the authorities have lost control, nothing they can do? >> you know, we're talking on our desk, the great fall of china or the end of the bling dynasty. that's what we're talking about. it's worse and i think it's coming our way. stuart: thank you, scott shellady.

is there an element of panic with ten minutes before the market opens? >> absolutely. you're seeing in the orders stack up and feeling it come in around the edges. to scott's point if you buy low and sell high, this is the shakeout everybody longed to happen. and the fed is to blame. they're managed it terribly in the beginning and the markets have taken it into their own hands. stuart: you've got agreement. >> it's not just the fed. >> who else? >> it's the president because the president bet that he could inflate asset prices, he could raise taxes, he could smother our most productive industries and the american consumer would go my stock market portfolio has gone up and i'm going to spend the money and prop up the american economy. yes, the fed is to blame and the other side of the equation, the fiscal side. we've killed the american economy, the most productive parts and this was always going to come. stuart: mary has come up with strong stuff there.

kills the american economy. keith, a bit strong for you or what? >> no, that's not strong enough. i think the fed absolutely is out of control. they have no business doing what they're doing. and the ministry of whitewash et al., congress and our leadership in the white house eviscerated the middle class. this was been if you're rich, a , poor a bailout and middle class-- >> are we likely to see a statement from the president obama or the chair or the federal reserve. >> what's he going to say, hey, let's have more tax and spending? i mean, really, that's the recipe that he's put on this economy for the last six years, what's he going to say? >> keith? >> well, you know, if you were smart and truly a leader, then, yes, we would see a statement immediately upon the market open this morning and see a corresponding statement from yellen ideally on the same podium. you know what? it's never going to happen in a million years, these two have

no idea what's going on let alone how to fix it. >> or he'll say more investment, more government spending, that's my bet for what he's going to say. stuart: joining us from the floor of the new york stock exchange, steven guilfoyle, a trader on the floor. steven, is there a whiff of panic down there? >> a whiff of panic, stuart varney wants to know? >> definitely a concern. panic? it's bordering on panic, i was here in 1987. it's not the sick in the gut feeling, but we could get there today. >> when you look at the levels, right, where you can go down. we talk about the circuit breakers and the like, what are you preparing for this morning? >> we have a level at s&p 500, 1870's, a support level. if we get through that, i don't know if there's much between us and the 1832 circuit breaker. nicole: there's nervous breaker, but some people loved apple at 130, but got to love it at 100. we'll see. stuart: thanks for reminding

us, the markets drop 1100, the circuit breakers kicks in and the action shuts down for a holding period and take a deep breath and see where we are, if we drop 1100 points at the moment looking toward 850 point drop with the dow industrials. ashley: and first circuit breaker. stuart: roughly 1100 points, i haven't done the math. ashley: yeah, close. stuart: 9:24, six minutes to go, the dow industrials likely to open 800 points plus on the down side. the trigger is china, and another loss there, and some feeling the government in china lost control. some feeling the fed here has lost control and mary is bashing president obama saying that he, too, lost control and part of the blame. >> what did we do, the housing crisis, let's nationallize health care, raise taxes and regulate the economy and prop up the stock market. stuart: look at interest rates are tumbling.

bond prices are going up and yields are coming down. last reading, 1.95% on the 10-year treasury. when it case down 8 basis points, that's shorthand for a big drop in the yield. 1.94, just changed. futures looking sharply lower and interest rates falling a little bit more. 852 seems to be holding at that level as of this point. and the price of oil falling some more, everyone, now we have it at 38.54, that's the latest reading on the bottom of your screen, there you go, down another 4% plus. we're close to a $2 per barrel drop right there. and you add it all up and we've got an extraordinary situation that may rank along there with the break of '87 and a big drop in march of 2009. >> this is bigger, more government borrowing, more spending, and it's global. stuart: that's a good point. we are drowning in debt. ashley: yes. stuart: we've got $18 trillion

here. ashley: and in china. stuart: in china they've got big foreign currency reserves, but that's a very big thing. five minutes to go, four minutes to go before that opening bell. one more word from you, scott. before we get to that bell? >> yeah, two big questions, number one, we've got the rate hike shut down and made the dollar a lot weaker, when the dollar is a lot weaker, we should see the commodities and find a base, they can't because we're in the middle of a global slowdown. number two, the biggest question investors should have. 0% interest rates, why couldn't get inflation. stuart: i've just got word, the treasury 1.93, can you look at the your boards, scott and tell me if other commodities like grains and metals, are they down, too? >> absolutely. we've got wheat, corn and beans opening the same time the

stocks do, they're down sharply and they should not be down sharply with the dollar weaker. see, this is why, we've got a global slowdown, not just oil and gold. stuart: i now see the price of oil, down $2 per barrel. there's a spiraling down going on right now, 38.40 on oil, down $2. 193 on interest rates, down a big 10 basis points, woo he have' lost a lot of ground in oil and in interest rates in the very, very-- just in the last few minutes and we have the futures holding with a loss of 852 points, i'm not sure i trust that number. maybe a little confusion because of the action going on. it's 9:27.30 from the opening bell. it's ugly indeed. reminds me october 19th, 1987. you say it's worse? >> i think it's worse. ashley: the scope of what we're looking at makes it worse.

stuart: interestingly there's not a rush to the safety of gold. maybe gold isn't so safe. it's up $5 an ounce. on a day when everything else is moving rapidly in the lower-- going down, it's interesting that gold is only up 5 bucks. i'm trying hard to find some asset, some stock which is up significantly today and i-- >> keep looking stuart. >> you'll be looking for a long time. stuart: there is a sense of unease. and put it like that. it's obviously nail biting time, there's no question. this is high anxiety on a day like this, when your money is at stake and you're watching on the shrines sidelines and watching your money evaporate. a gut wrenching feeling. october 1987 i was on the air on a different network and that was gut wrenching because at that point you saw that market drop and knew what was happening to your money. same in march of 2009 the, the

dow went down to 6500, an extraordinary event at that time. all right, we're coming up, close to being joined by our fox news viewers, they're about to join us because they want to be in on the opening of wall street. let's welcome all of our fox news viewers. we're watching this historic day on wall street. just look at this. one minute to go before the bell rings and we're looking at an 800 point loss for the dow jones industrial average. please remember, we were down 1,000 points last week. big problem, china. that market was down over 8% overnight and it's down by almost half in the last couple of months. the authorities in beijing may have lost control. we're also looking at a huge decline in interest rates. the yield on the 10-year treasury all the way down to 1.93%. maybe that's a silver lining, here in that that very low level of interest could mean much lower priced mortgages.

we shall see. and that's another thing. >> reaching-- >> and we've got 10 seconds to go before what may be a historic oil on wall street. oil is down, stocks down, gold up only $5. three, two, one, here we go everyone. the dow jones industrial average from the stock market has opened for business on this august 24th. immediately, we're down 108, 1112. we don't expect that the full drop will be seen on that indicator for about four or five minutes. we've got a big volume of selling, it takes a while to establish the price. so, that's the early indications, a very, very sharp drop. bearing in mind what happened prior to the opening of the market, we can confidently predict within five minutes that indicator will show a loss of 7, 800 points. and we'll been spiraling down as we go. who is to blame for this? well, we blame the federal reserve, a long policy of free and very cheap money.

we can blame china losing control of their market and their economy, and the absence of a plan. how do we get out of this mess? we're down 500 points. probably 600 within a few seconds. and that's what we have. fox news viewers, thanks for joining us, now go back to-- let's go back to martha and leyland vitter. and we continue here on fox business with our coverage off what's going on on wall street. it's not pretty. scott shellady, take a look at oil, please. how bad is it now that the stock market is open? >> well, i tell you what, down a buck 94. just because oil is going down and the consumer would be happier and see the retail sales come back. that's not the case since oil began its slide. we're in trouble just because not our own government policy and federal reserve, but it's also china. i think that china is bigger than we think it's going to be

and we'll be buffeted by the wave. the last 20 years they've grown 56 times. no such thing as a soft landing if they start to faulter. ashley: oil is down two bucks at 38.42, down 5%. stuart: a 5% drop in oil. and we've got a-- now we're down 900 points on the dow industrials, 950 points. remember please, if we go down 1100 points, roughly 1100 the circuit breakers come in and we shut down all activity. now we're down 926. 5 1/2% down. 15,500 where we are. a selloff and a half in the early going on wall street. all right, mary. >> this is the great liberal reckoning. this is the great debt reckoning, this is the great monetary experimenttation reckoning. governments around the world following the lead of this administration in the pelosi congress, borrowed trillions of dollars, they took that money, they spent it on unproductive projects and they crushed the productive parts of our economy. stuart: all right, now what i'm

looking for is someone to say, or come in and say, facebook in the 70's is a buy. apple in the 80's, maybe, is a buy. and look who is on the phone, david waddle from waddell and associate who says, yes, do some buying. is that what you're saying, david? >> i do. i think it's a little too late for investors to be hedging. you know, we haven't had a pullback for over four years, we haven't had in the history of the stock market, seven consecutive years of gains, so this correction, to me, was somewhat broadcasted. so, as far as hedging, you should already have done that. the question is now, you know, markets are so algorithmic, the most it's-- >> we're down a thousand, all right, david, come on, are you going to-- what are you going to buy. if you think it's a good time to buy, tell me what you're going to buy with the dow down 1,000 points almost. >> i'm not saying that you buy

voraciously, there have been a bear market and some imploded from it. let's consider the bank on your corner in iowa. we see the home builders. if the fed is forced to renew sort of monetary easing, that's going to allow the unemployment rate in the u.s. to drift lower which underscores the household balance sheets and there are areas of the market. stuart: i hear you i've got to go to the new york stock exchange floor and we're down 1,000 point and i believe that's the biggest intraday drop we've seen in dow jones industrial average. can we bring up the volume on the floor of the exchange hearing shouting and screaming down there. i'm not implying there's panic, but there's high excitement and anxiety as the dow drops 950 points. looking at individual stocks. >> right at 98, down 7 1/2%. stuart: i saw facebook go by a

drop of 12. ashley: 75.80, 75.40. it's down 12%. stuart: down 12%. netflix looking at, down 16 at $87 per share. what else have i got? tell me numbers, tell me stocks. ashley: have a look at wal-mart, 97 on apple. stuart: did apple touch 92? whoa, there's a selloff and it bounced back. so, somebody jumped in, bought apple at 92 and took it back it 97. not bad. we're down 1089. i believe the circuit breakers kick in at 7%. 6.4% now. if we hit 7% the market action closes down on the new york stock exchange. scott shellady come in, please, what have you got for me? >> i would have said that we've got, all the commodities, even though the dollar is weaker today, are coming off very wary, something we should be

worried about. and as far as what would i buy? right now i'm not touching stock, i'm buying a bus ticket out of town. stuart: well, somebody is. scott let me tell you this, netflix dropped down to 85 earlier this morning, it's bounced back to 91. somebody came in and bought at 85. same with apple. touched 92, somebody bought it it's gone back to 97. maybe a lot of people bought it. why are you laughing, scott shellady? >> this thing is not over till it's over. we've got some guys on our desk that are saying they want to see the s&p 500 at 1600 and gold at 1600 and then they're going to start to take the trades off. stuart: by the way, oil is now down 226, challenging the 38 barrel level. close to the 37 handle. harry dent is with us. let me see you, harry, where are you? i think you're in florida. florida to to see you. you've told us many times on

this program in the past, that we would eventually see within the next couple of years 5,800 on the dow. are you saying that that's exactly what's happening now? go. >> yes, and you know, this takes a year and a half or so just like the 2008 crash, this is the beginning. we've been warning your audience and our subscribers, get out of this bubble a little early than late because when they first crack, you can be down 30 to 40% in just the first few months and we already saw that happen in china in jump. this is serious. it's going to get a lot more serious and there will be a bounce at some point and the problem, stuart, is once we go into it mode and it starts to crash, you're going to have violent downs and violent bear market rallies, it gets very hard to play. i'm just telling people if you haven't sold already, the next time we get a strong bounce, lighten up or get out or hedge, because this is the major bubble globally and it's going to be a major burst. bubbles don't correct, they burst. stuart: okay, you've got to

tell me, what is the fundamental problem around the world? why are we seeing this? you've got 20 seconds. >> we've been saying for years, china is slowing after the biggest bubble in history, that kills commodities, when commodities go down, emerging countries go down 'cause their commodity exporters and the whole world goes down. the oil thing alone is going to kill our energy industry and high level frackers in the united states. the first thing we're going to feel. debt default from fracturers in the united states. that has nothing do with our economy. >> apart from gold is there anything you would buy right now? >> you know, really we have been telling people get into the safest treasury bonds, be in the u.s. dollar, that's going to go up in the crisis like it did last time. but gold is the only thing going up now and it's not going up strong. it may go up in the early stages of the crisis in 2008. eventually i'm predicting gold in the next year is going to be down to $700 or so, so, basically when a bubble bursts,

the problem is, stuart, everything goes down because the bubble has to be erased. credit bubbles create financial asset bubbles and they burst, it's not a correction, don't see it as a buying opportunity. >> stay there for a second and i want to update everyone, what's going on here. literally a couple of minutes ago we were down over 1,000 points and now we're down 780. what have you got? >> and you talk about people jumping back in, it was well below 80 a share, 72. it's come back up close to 80. 79.50 so down 6 1/2%, 7% right now, but money is coming back into it and people are biting and facebook. stuart: same with apple. and bounced. ashley: way may explain why we're coming off the 1,000 point drop. stuart: apple crossed 100 and what is it. 99 at the open. i don't know what it actually did open at. 92. >> 94. stuart: to 100.

dow was down 1,000 and now it's down 780. so you've got people, obviously, professional traders and maybe some of our viewers, who knows, that not many viewers, however, in and out in a couple of minutes. not many people actually do that. day traders, you're welcome to watch the show and see what's going on. i don't think there's that many of you with a some -- stomach as strong as that. 38.05 in oil. if that's 37, it's another negative for stocks. ashley: very close. stuart: interest rates tumbling, last check 1.93%. ashley: oil just dropped to 37.97. stuart: 37.98, 96 on oil right now. it's falling. may i point out, a bright spot in all of this? >> where? >> yes, please. gas prices. if you've got oil at 37. down 6%-- >> they should be down more than they are.

>> and if you have a job to drive to, that's great. stuart: nicole petallides on the floor of the new york stock exchange, come in, please, what do you have? >> there are guys running. this has been on the verge of-- you feel the tension here on wall street. and you heard stuart say earlier, 1,089 was our lowest points and the circuit breaker would have had to have been 1152. so close, down 6 1/2% and that 7% mark. tom farley, the president of the new york stock exchange was here on the floor walking the floor to make sure that everything was going smoothly and you can see everyone around the posts and excitement on wall street, some are buying, some are selling. somebody is buying, stuart, it was down almost 11 points and now 700 points. stuart: mary. >> the risk is that the fed says we have to do something, we have to step in, we have to start buying stocks like they did in japan. don't be surprised, don't be surprised, stuart, if you hear-- don't be surprised if you hear

that kind of talk out of the new york if he had. stuart: david waddell, a guy who might be doing some buying. back in, please, facebook went from 7 p 2, abandoned back up. ashley: 101.40. stuart: now apple is up to 101.40. is this what you were talking about, david, when you see what you think is real value from a huge downside move, you jump in buy, is that what you're talking about? >> what i think is it amazing, we've got the fast markets, algorithmic marketers and that's the short termers, and the new arbitrage in our day and age for long-term investors to try and take advantage of some of these perhaps, the short-term investors that make. i'm not saying that the market is going to bounce at 1,000 points today. we've all of a sudden change the narrative. we're going to write off the growth in china, we don't understand it, we don't trust the leadership, and if you write off growth in china,

deduct 50% of the gdp growth. we're in a global growth recession and 2016's earnings growth is going to evaporate the market's overvalued by the way the fed is tightening and now we need to talk about qe 4. >> oh, that would be-- >> i've got to leave you for a second and go back to scott shellady who has to leave us within a couple of minutes to sum it up. a kind of comeback, because the stocks have come back down only 3 1/2% now. >> well, there's going to be opportunity and all day, all week, maybe for the rest of the year, one thing i think is safe and i do still like a 2% or a 1.95 or 2% treasury. not because i'm going to hold it for ten years if you've got oil at $35 a barrel, i think you've got a treasury at 1 1/2%. no way we could have oil that low without the treasury 1 1/2. i think that's your trade.

keep oil on the front page of your ticker and that's how it's going to go. stuart: thank you. . ashley: exxon was down significantly, coming back strongly, down just a couple of percentage points now at 70.76. consider we're seeing what's happening to oil. someone is jumping in. stuart: it's extraordinary, only 3 1/2%, exxon 11/2, 2%. how about that. >> prices have to adjust to the economic reality in the united states and europe and in china and the question i have, stuart, will the fed allow that to happen? or, as you say, will they jump in with another failed round of quantitative easing? is the obama administration going to allow this to happen? i've got a book for everybody to read. 1921, jim grant, it's called forgotten recession, why was it forgotten because they let prices adjust, prices adjusted ichl painful and it was over.

are we going to do that or-- >> charlie gasparino is down 1,000, and now 551. >> i've never seen a thousand. and this is not because of a flash crash. stuart: several people to blame. number one china, number two the fed, number three president obama. where do you put the blame. >> number one president obama. listen. stuart: really? >> yes, the fed, i know it sounds good to beat up on the fed and everybody does because they printed money and did the bad things. let's be clear here. they did that in the absence of coherent fiscal policy. they did it because they were the only game in town coming out of the financial crisis and when you have a president that wants to raise taxes, impose regulations, do all the stuff that destimulates the economy following an a market crash of 2008, 2009, the fed has-- it's imperative to the fed acts and lowers rates and that's

why, that is the problem. it's obamanomics, he created this and now we're paying the price. stuart: brad mcmillan from commonwealth financial is on the phone and you say it's not as bad as it looks, is that correct? >> that's correct. the u.s. fundamentals remain strong. i think a good example is the asian financial crisis we got hit hard and we bounced back. stuart: okay, what we're seeing at the moment. the market opened, the dough went down 1 is,000 points and backed to a thousand points and another leg 651 points. obviously, brad, this is extreme volatility, but i figure that by your analysis, you're thinking that maybe is now is good time to buy some of the big name stocks that have been beaten down? go. >> we were just talking about that and-- in my office. you have to be thinking about with prices this far down, either it's an extreme reaction, which we believe, or

in fact there's an opportunity here. so, energy, perhaps, there's already a lot of bad news there. maybe that's a good place to look. >> stuart, harry dent, come back in, please. a lot of people are saying that the fundamentals of the american economy are sound and therefore, this selloff is overdone. what's your response to that? >> they are not. the baby boom peak in 2007, as we predicted 20 years before that, it's all been about qe, to fight this natural decline. and their savings and the debt cries cities and the whole debt bubble that built up, and the demographics, we've been saying for the last year, to get much worse from 2016 forward when the top 20%, the wealthy that have benefitted from qe, they go through their demographic down turn just like homer simpson did. it gets worse and germany has the worst demographic trends, worse than japan in the '90s and we called that down turn in the next eight years.

stuart: harry, you're the only guy talking about demographics, the aging population and the baby bust. the only guy who is saying that-- talking about this, that it has a serious impact on economies and government spending around the world. you're the only one pointing that one out. now, let me see, charlie, i interrupted you, go. >> i would say for the average investor, get mired in demographic trends and this stuff and the gentleman might be right in the long-term, but what do we do now? well, you know what you do now? you look for dividend stocks, let's be-- be rational about this. you look for beaten down stocks that pay a dividend and companies that aren't going anywhere and that's what you do in this environment. you don't start wringing your hands about demographic changes which may or may not happen. >> may or may not-- >> you can find blue chips that could pay you 5 or 6%, reliable dividends. >> that's what you're going to do when you go home tonight. smart guy like you. stuart: are you trying to flatter you?

>> you were shaking your head. stuart: caught me by surprise. seriously, that's a very good strategy. if you're long-term investor, get into a stock that's going to pay you 6%, guaranteed 6% and they're out there. >> and remember what's going on, too. the market is the heroin addict. the fed is the heroin pusher. okay, the market is coming off the heroin so guess what? it's going through withdrawal. stuart: i've got to tell you, i place more blame on obama. >> i do. stuart: on the politics of america. >> because the fed had to be the only game in town. i agree with you. think about what's going on now, long-term, when you come off heroin, it's good for you long-term. >> and if you let those prices adjust. that's the question. is the fed going to let the prices adjust. is the president or are we going to see more intervention and more distortion and propping up? look at what this guy has done with the executive orders and

the regulation? he's crushing our coal industry, crushing our financial industry. they have to let the prices adjust. stuart: well, i agree. keith fitz come back in, please, we've had suggestions on the program this morning that the federal reserve may introduce another printing operation because the stock market is so far down. your opinion on that, please? >> look, the fed is dumb enough to have done it in the first place, stuart, they're dumb enough to do it again. they have no idea how real money works and that's what's happening today. you've got people making decisions with real money, not fancy academic models. and they're simply taking matters in their hands. to charlie's point, now is the time to go home. look at that list of stocks that we've talked about on your show so many times, companies with strong balance sheets and strong sales, strong savvy management. >> and paying dividends. >> that's how the game is played. so, celebrate today. i know it doesn't feel good and terrible and panic, you know what? this is how the game is played.

if you want to be a successful investor. be disciplined, take your hat off and run your stocks and find the favorable stocks, five from ten years from now-- >> it takes brass when the dow is down. >> how many of your viewers have a little money on side line and have to buy? >> you have to do your research and look at dividend stocks, i mean, good companies that offer dividends. stuart: keith fitz come back in, you've got your hand on the small investor. you deal with folks like this. are any of them showing a strong enough stomach to buy now? >> absolutely. we've got hundreds of thousands of subscribers around the world who will do exactly that. and you know, the thing is, woo he have' worked with them for years and years and years and everybody understands that this type of stock, from chaos comes opportunity, something we talk about all the time. because when everybody else else makes their mistakes,

that's when the strong money weighs in and you're seeing that this morning and seeing that instantaneous reflex drop and the smart money weighed in. not doing it all at once, but they're going to try to ride this train. the fed is going to do something stupid and white house with something incompetent and there is money to be made from competent companies. >> alibaba, the big e-commerce giant. 64.87. and well under the ipo price 6. down nearly 5% taking a hammering. >> and art laffer on the phone. come in please. >> hello, stuart. how are you? >> it's a bumpy ride. put it like that. do you think that this stock market selloff, 1,000 points last week, 700 now, dos that negatively affect the american economy? does that hurt us? >> it usually reflects what's going upon, yes, of course it

hurts us, never-- i wouldn't take this too seriously. i'm 75 years old. a lot of downs and ups. and my view, whenever the downs stay down, it's because of government actions and my advice would be, don't just stand there, undo something. stuart: if you're 75 years old, i'm almost in your vintage, art. and i remember the 1970's which was a very, very long, slow decline for the stock prices. i also remember 1987, which was a sharp drop and then a really sharp spring back. i also remember march of '09, huge drop to 6500 on the dow and a quick bound to 18,000. what are we going to get, a quick rebound or return to the '70s? >> when i look at the '70s, johnson, nixon, ford and carter, the largest assembly of

bipartisan ignorance on planet earth. tax increases, monetary policy, inflation, all of that horrible stuff that led to ronald reagan. we are not in this circumstance today. we're at the very tail-- >> art, we cannot change policy. economic policy cannot be changed in the united states for at least 18 months. >> that's correct. that's correct, but what we have right now is a bad set of policies that have been bad now for a number of years. 12 years, 14 years. and those policies are in the process of being changed. if you look at the state legislatures, you look at governor, you look at the house, at the senate, we have one office left causing problems and that's the white house and that is the only office that needs to be changed and it will be changed and when it is changed you're going to see a boom like reagan. stuart: whoa, whoa, step back a littlement you say it's going to be changed and the republicans will win the white house and control congress and at that point you're still saying dow 20,000 and beyond?

>> i don't think i've put a number on it, but-- 20,000, i don't care, whatever it is, i think we're going to see another 1980's in the u.s. once obama leaves office and the next president comes in. >> suppose it's hillary art? >> look what she's proposing, no one wants capital gains taxes and nobody wants bernie sanders, those are people are whistling in the dark. stuart: i agree, but the idea of blaming wall street and taxing the rich because they're rich and beating up on the banks, a new entitlement program, that's hillary clinton's program that's politically popular. >> yes, it is. stuart: that could be a win with a market like this? >> i don't think it's popular at all. if you look at the election, they're going against these people and not for them. that's true when obama came in in 2008, that was a popular argument, but it's not now. it's not selling. no one in the world believes

that if you tax people who work and you pay people who don't work you're going to get more people working. that's silly. stuart: hold on a second, art. mary is with us and shaking her head and nodding your head. not sure. >> okay, stuart, there's been an argument out there, i don't agree with it, the editorial page. this is the new normal, 2% is fine, and that's the average growth for this era. you've got a lot of republican candidates out there, many of them focused on growth, saying we could do, 4, 5, 6 of%, i bet art agrees. >> totalsly, mary. the only ones who don't agree with that, the larry summers, the paul krugman, people who brought this problem. they don't understand it's their policies, it's the stimulus spending, quantitative easing that has caused the great recession, not that it has happened in spite of those policies. those policies caused it and they're out of juice, they don't have any ammunition left.

it's over. stuart: no arrows in the quiver, no tools. >> larry summers had an op-ed, he talked about secular stagnation and all of this stuff. >> forget it. >> he's the reason why we have it. >> exactly, exactly. >> it's his policies of high taxes, of qe. i say i agree with art, the business media has fallen down on the job, except for us, we have not had coherent fiscal policy out of this white house, ever, ever. >> yes, you have, it's called tax and spend. that's very coherent policy. >> no, it's not. it's opposite. because they're spending and they're taxing. they're trying to stimulate and they're destimulating at the same time which never works. stuart: okay. art, last word to you before we close out. >> i've never heard of a poor man spending himself into wealth. it's stupid. and what they've done now is when they have an arrow in

their quiver, they turn around and shoot themselves and now that they don't have arrows, we're safe. [laughter] >> making humor out of a pretty bad situation. we appreciate that. >> and 13 out of 30 are in bear market, down 20%. recent highs, chevron down 43%. stuart: dare i suggest there's a little stability on the market. dare i suggest that? we've been down 600 points for ten minutes. is that stability? i don't know. we were down 100. 1080 in the first 5, 6 minutes of business, 6 1/2% drop and now 4%, loss of 669. nearly it's going to be up and down all day long. i don't know where the bias will be. i don't know where we'll close, it's in for a very volatile session. go ahead mary. >> you talk about china losing

control of its market. that's the wrong way to look at it. china manipulated its market and didn't allow for real investment to happen. real valuation based on risk and return. this is what happened command and control, and that's the great liberal reckoning. we need to say it from the day. >> from the get-go we've been looking for big name stocks which are beaten down and looking for people who jump in on buy on what they think is bargain prices. we have some examples of that. i've got facebook, i've got netflix and apple. apple 101. >> apple is 101 #. i saw it close at tape at 92. that was the low. ashley: yes. stuart: obviously, some traders have come in and thought apple at 92 is a steal, buy it and now it's 101. facebook at 72. ashley: now 80. so 6 dollars-- >> somebody came in for a quick 10%. which is guy began gigantic.

netflix, 85 and 92 now. these are stocks we have been covering every single day for months and months and months and they're the ones that led the rally. facebook, netflix, google, microsoft. what did google touch? >> google touched 593. and now it's 611. ashley: yes, see. stuart: somebody came in for some decent money. so, the buyers are there. >> you're right and i don't think you go around and you start panicking with this stuff. listen, the heroin addict into he understands to come off slowly, slowly, and you're to see some jitters, not a bad thing for the market to correct. we're way up there. stuart: we were down 1,000. >> it's nice to get some of the-- >> it's like a forest fire, and gets out the dead wood and comes back stronger. >> lets me be clear here, who

is taking it on the chin. it's fat cats on the hedge fund. >> no. you've got a lot of middle america hurting right now. >> i know what i'm talking with this. average investors not been in the market. a rate increase would help the average investor not the fat cats who made a lot of money at 18,000. stuart: we have reports last week, jeff bezos boozing $2 billion. >> why are we demonizing these guys. >> no, talking about it purely political. i'm telling you who is hurt here. the guys hurt are the professional-- >> i don't know, i'm getting hurt here and you're getting hurt here. >> no, i'm not. stuart: look at your 401(k). the traders are going to win back a lot of money. if you're in there trading on 1/10 of a second. >> stuart, who has been in stocks over the last eight years, who has president obama's fiscal and monetary

policies help. the fat cats. not the average investors. they've been out, they've been afraid. stuart: and 3 1/2%, that's some stability? >> is dow 18,000 stability? >> wait, let's step innen 0 the dow, when you lose 1,000 and come back only 500 and you stay in a range and look, fair enough, but just a few minutes. what have we got next? keith fitz still there. are you still in seattle? >> i am still in seattle don't forget what's happening. 68% of this trading is now computerized. what you're seeing is not just the individual investors fighting it out or the fat cats, you're seeing tremendous computerized trading programs and i wrote a lot in the day and they in fact go slamming down and when the numbers go down low they slam back up. there's liquidity churning because of these things.

that's what people need to look at. stuart: i felt there was an element of panic in the first few minutes of business when the dow dropped 1,000 points and you had that feeling, watch out, how far we go going go down. that seems to have gone by and we've been open for 32 minutes, 33 minutes, a short period of time i feel that maybe that panic instant has gone, for now at least. we don't have the gut wrenching feeling. go keith. >> well, also don't forget, what happens over the weekend? you have a lot of retailer orders, place their orders and cued up at the open so what you're seeing in the first 30 minutes is a lot of weekend bleedover. people who panicked friday night and placed their orders and they get worked through the systems and the traders come wading back in there's an opportunity to buy. it takes two to tango, for every seller there's a buyer, so there is a dialect at work here and pleased to see there's stability. stuart: it's rock and roll

time, put it like that and we've just been joined by liz macdonald who says she's got news for me liz: we've been working the phones on wall street with j.p. morgan and goldman sachs. and they're worried abouts as we talked about, some funds are in deep trouble. the funds that invested in the economies around china. when china devalued it took 19 of the economies and countries into the currency devaluation so we're talking t. rowe price, morgan stanley, pimco, some of the funds are down over 20% over the last year. so, what happens is in those economies, 19 economies, they're more than half of the gdp growth of the world, surprisingly. when that demand craters, those funds are seeing withdrawals. and people are rushing for the exits. stuart: wait a second. do you know, there's a lot of speculation about the funds that they may be in trouble. now, that's a vague expression. what's the latest on it. >> they're saying they're

extremely concerned that there could be a liquidation mode for some of the funds. they invested so heavily in the economies that are turning upside down that may see inflation, because they have to devalue as well and triggered by china. stuart: we were down 1,000 and now we're down 16,000 on the dow. >> it was a fascinating story on the sometimes and the rub is funds, it's the countries themselves use the fund as a borrowing mechanism and that might be gone as the funds liquidate or sell out and not buy. and black rock was essentially a lender to china. stuart: it's an overhanging threat of some large pools of money, funds, which need to liquidate stocks because they got redemption orders coming in because the bonds that they hold. >> let me tell you, look at the dollar amount of the numbers that went into these, this region, 9 trillion dollars, that's-- since 2008. that's equivalent of two japans

into this area of the world. and china is going to try to switch to being a services economy and more consumer focused and there's a reality check going on. per capita income for people in china, only 7,000, a big reality check going on. if you build demand in this part of the world. stuart: and a hectic day august 24th, remember that date and we'll be telling our grandchildren about this. and my grandchildren are coming today i'll tell them about. down 3%, 524 on the down side. interest rates tumbled around 193, 1.94 for the yield on the 10-year treasury. that's a huge drop in interest, the cost of borrowing money. we also have oil and we're down 38.85. there's bounceback, 37 and now almost 39. ashley: apple 102.40, come back a long way. stuart: i'm glad you quoted that because look who is here

standing next to me, scrambling in, hillary kramer, now, you've been very, i say bullish on apple consistently for the long-term investor. it looks to me like a lot of people jumped in and bought at 92 today and now it's at 102. >> right, that's right, because apple is where money goes for safety because relatively, it's still a cheap stock. of course, there's a give and take, the problem is china and now we saw rumors out there tim cook sent the e-mails out to the media saying that there's still strength seen there in china with the iphone so that came out about oh, 25 minutes ago. stuart: and you would be one of those investment advisors somebody with the money on the side, it's pretty good time to buy and it's pretty beaten down? >> apple would be a good one to buy, but there are others, also, you want to be in the industrial here. they look good, honeywell, ge, international tool work, a lot

of places to buy and places to avoid. >> there are some modest bouncebacks in some markets. >> we're down 475 points for the dow industrials, please remember, we were down over 1,000. we've got a bounceback in bond yields, we were down to 192, we've bounced back to 198. we've got to a bounce back in oil and touched 97 a barrel and look who is joining us right now, colonel, lt. colonel ralph peters. i'm sorry, that was a very small promotion right therement you call that a battlefield promotion, if you like. >> sergeant. stuart: i want to talk to you about china very briefly. there are reports that china has-- the authorities have lost control of their market, lost control of their economy. i put it to you, that's a very dangerous situation 'cause they could play the nationalist card

and lash out in the south china sea or someplace else. >> what do you say? >> it's dangerous, i've said for 20 years, don't worry about a prosperous china, worry about a failing china. what's happening in the chinese markets, and i listened to the experts here in the financial world, the only thing i'm surprised at is that they're surprised. if you study history, this was inevitable. you have the stated policies, 18th century merchantile trade policies, and post modern equivalent thereof. now you're facing a china that's become for the first time in thousands of years of history, a global economic and political force, a regional military force and yes, will they try to play the national, nationalist card? i would worry about it very, very much. and oh, by the way, welcome to the investment world, china, the chinese-- the chinese investors are

getting financial 101 and that's the china on the margin. >> china doesn't have the kind of stock market that we have in the west. china has, to are a stock market, a casino. 80% of stocks trades are individual investors, many don't know the company they're investing in. they simply believe it's a chip on the poker table to buy. it's a casino there, in many respects. >> and the government is the-- and the casino is rigged. we keep kidding ourselves. investors always want to date the blond cheerleader and ignore the brunette who studies hard and the brunette to studies hard is the american economy. i've been through this. the american economy has-- the soviets were going to beat us in the 50's and late 80's it was japan. structurely, legally, in terms of work force, the united states is the best positioned

economy in the world to get through all of this and prosper and i don't understanded panic here. i surely do understand the panic over there, 'cause china may be in for a long period of very ugly stagnation. stuart: and now, again, it's borrowed policy terms, look at russia, nigeria, venezuela, saudi arabia. they're all huge oil producers and i suspect that they're all in deep, deep trouble, with the o oil. >> absolutely, it's going to depress oil markets and africa, subsahara in africa is going to be hit hard. the chinese were this there exploiting the national resources and paying off, ruthlessly and brutally exploiting the workers, and building shabby hospitals that falls apart. and now, after looting those countries, the price of those

commodities and minerals and et cetera, is going to be depressed again. africa gets a triple whammy. workers get treated worse, income drops and they become less stable. this does, this china market crash and it's obviously a crash, dos have global strategic implications in latin america, too, although that's not as bad, the exposure is not as bad as in africa. from the south china sea the possibility of a military confrontation to derailing subsaha subsahara africa where there with as progress made, to the latin america, this really, really sucks. is that a financial term, sucks? we're in the best position, the united states. i'm a historian and i think it would help people study broader history than just the history of markets. when you do, you know what you see, stuart? what happened in china was a shinier, glossier, brighter, more convincing version of stalin's five year plans where

stalin poured resources into that big jump ahead with no regard for the environment or for the finances or the costs or the human costs and china was able to make real demonstrable progress on the surface, but the guts were rotten. stuart: well side, you can tell a mile off. sir, stay there for a second, ralph, i've got business to attend to and get to you in a moment. look at this, the dow industrials, 400 points. we were down 1,000. i suspect there's been buying in those old industrial stocks. hillary kramer mentioned this a moment ago, back it up. is that what they're saying? >> yes, absolutely. stuart, now we have sustainable valuations here and investors are looking for opportunities. lots of investors were smart to have money on the side line and that's why we are pea seeing netflix down more than 10%, but the industrial names and large banking stocks. stuart: give me the names. >> honeywell, hon.

>> they've come back up off the lows and have an opportunity to go higher. they're dividend yields and company hurt june to august. the stocks that keep going down today are the stocks that were still going up while it was june to august and we were seeing stocks going down that were including, even stocks like general electric. can you look at your computer there? i want to find a stock in the dow industrials, a really big name industrial stock that's going to pay me 4 or 5% dividend at these prices. >> 3m and just hasn't had any strength to it since june. money is going to start going there. >> what's the dividend? >> about 4%. >> 5%, and find good ones. >> what about cisco. and think about the defense companies. think about raytheon and northrup grummond. the companies like raytheon old world companies, tanks and guns

and they're a good opportunity. down 5% today and you get it. i don't have raytheon, 3% yield in the defense names. >> down 5%, 3% yields buy the best price. >> and you're going to see the market come back up that way. we might have a little more selling, 2:00 when the big margin calls are placed again, but after that, we could end in a much better place today. stuart: oh, that makes you feel good. oh. i want the trumpets and a round of applause for hillary kramer. thanks, you're right. and woo we're 45 minutes into the session and we have bounced back. i've got to say we bounced back, we were down 1,000 and now down 442. can we call this stability. ashley: i'll call it a little stability. stuart: will melissa francis agree with me? is this a little bit of stability? you know your stocks, what's going on? >> there were already traders out there that said we could end the day positive, end higher from here, that sort of thing as people come in and sort of trade off the bottom and buy the bargains. stuart: wait a second.

if i've just bought apple at 92 and it's now 102 i'm going to say-- >> 104. stuart: now 104 so it's gone up $12 in the last 45 minutes. sure i'm going to say, oh, it will end higher today. going up here. >> this is why any investment advisor worth your salt would tell you this morning, do not sell, do not panic, all you do is lock in the losses on paper. i don't trade for a living. that's the advice i would take for myself and give to my own family is to sit pat, don't sell, don't panic, if you're very brave and there are stocks, i know people who will buy a share of apple or this or that for their kids instead of apple products, it could be a good day to buy the things that you love. definitely don't panic. stuart: ralph peter, favorite guest of this program, he's still there and hanging on and i've got a question for ralph peters. >> oh. stuart: are you ready?

>> with where do you put your money and have you sold anything or bought anything recently? may i ask you that? >> in the last 25 years i have never sold a single stock when the markets are off. never sold one share, because look, i'm an outsider, i'm looking at this differently from all of your brilliant guests who know markets far better than me, but from my study of history i know that you can make a profit betting against the united states in the short-term, if you bet against the united states in the long-terms, you will losement so i just ride it out. also as a small. i don't want to give the numbers, a small investor. you know, i'm very heavily into mutual funds and a variety of them, because i am paying those guys to make decisions that are smarter than the ones i would make. i own some individual stocks, but traditionally, you've got to have reasonable ambitions if you're a small investor. again, better to be, how can i put it?

if you're getting into the market as a young person or as an older person, it's important to know what you don't know and i know that i i don't know all the day-to-day infrastructural complexities your other guests do. >> it's also the economy. >> the american economy is a good long run bet and that's where i am most halfly invested by far. stuart: you heard it here from one of the great military h historians of this world and i've read his books. a good man, and common sense. ralph peters, thanks for being with us. >> and the common sense, too, it's not just about china, worries about apple with china, with regard to china. india is near there, too. india is a burgeoning growing middle class economy that could buy or pickup the slack and can pick up the slack in the iphones. and here is what we're hearing now. a redo of 1994 when china last devalued its currency and sparked the asian debt crisis,

later on, three or four or five years later in 1998. '97 and '98. and there's that concern on wall street there's a regional issue that's not just china, it's the other economies in that area of the world. >> do you know what gets in the way when you've got a day like this, melissa. it's that jargon and the experts say, qe 3. we're going to have qe 4 and fed funds rates are going to go up. nobody understands that nonsense, and these experts are usually wrong. instead you've got common sense coming in here and we're only down 400 points. >> this is what i would say about the jargon is that for long time we felt like the stock market has gotten ahead of the economy. used to be that the stock market kind of predicted where the economy was going six months ahead. remember those good old days. >> as policy out of washington has pumped the extra money into the system, it's gone into the stock market and pushed the stock market higher. and it doesn't reflect accurately what's going on.

>> the one thing that the traders on wall street-- i'm talking to guys at goldman sachs and j.p. morgan and morgan stanley, i'm talking to people on wall street, here is what they're saying, the last time we had an asian debt crisis, these countries did nothing in the way of fiscal reform. did nothing in the way of free market reform they kept state controls. watch this, a company in china base got won a title, a chinese company. they didn't do anything in the way of fiscal reform. stuart: and a building. >> outstanding builder of socialism with chinese characteristi characteristics hillary kramer, stocks to buy. >> kohl's and dillard's, they have 3% dividend yields, they're not dependent on china or asia and when i say beaten down.

ashley: they're deep dependent on the consumers. >> kohl's has growth and consumer loyalty. what you might not want to be in nordstroms, don't want to be in neal kors or coach and not just tiffany, it's domestic and international and double whammy from all sides. stuart: which of those do you own? >> kohls, and dillard's we recommend in our newsletter. stuart: you own it. >> we recommend dillard's and kohl's. stuart: let me have the bounceback, did you say that apple went to 104. ashley: it was at 104. stuart: facebook at 82 at the moment. i know it dropped to 72. ashley: and apple, 104.40. >> netflix hasn't connell-- come back. some of the high p.e. stocks

and biotech. ashley: 100-- 99.75. and the dow is only down 331 points. >> the severity of the selloff, that's still painful. stuart: clearly, some people have come back in, testing the waters and have truly beaten down stocks. facebook, apple, nell netflix. >> google is ticking up as well. stuart: keith fitz, you're still in seattle. a glutton for punishment. what do you have now? >> that's the important part, you're honing in on stability. what happened on the sales. a bier strike among traders. it's not that sellers are dumping over the boat. the counter acting influence, you're talking about gold. there wasn't the buying in gold. there's deleveraging and it wasn't the opportunity that would stabilize the market and i think that's important to remember when individual investors are talking about this. go home and relax and this is

not going to be a huge deal in the scheme of things. >> are you holding our hands and reassuring us, don't worry, don't panic, this is a momentary passing i think this? are you saying that? >> history suggests, beyond any shadow of a doubt, that what the fed did does not work period. not in the history of mankind, not in the history of money. when you look at the study of history, this stuff comes and goes. when we look at what happened in the last century. the dough went up 22,000 pursuit. through war and famine and it comes down to perspective. if you're looking at the apples, the google, the strong balance sheet and businesses that make a difference in this world? i would submit that buying not casually, not just jumping in. buy is what you want to do at times like this because you know that everybody else is making an emotional mistake and that's how you really have to

live by your retirement. stuart: what are the chances, keith, that we end this day higher? >> you know, the jury is out on that for me, stuart. but having been through this a lot. having been through a lot of the ups and downs, the fact that we are inching our way back says that there's money coming off the sidelines and i wouldn't dismiss that notion right now. stuart: thank you very much indeed. and it's not raining in seattle yet, very interesting. ashley: give it five minutes. [laughter] >> thanks very much, keith. ashley: apple at 105.11. stuart: 105. ashley: amazing. stuart: we went from an opening down to 92, now it's 105. >> they lost 172 billion dollars of market cap as of last friday, that's a lot. they were drop around the 600 billion range, will it be the trillion dollar company that we talked about. stuart: i'd love to see today. down 293 now for the dow. >> there we go. stuart: a mere 1.7%, compared

to 6 1/2% down 1,000. ashley: happy days are here again. [laughter] >> i'm going to stay a little stability. i'm going to say that some people have jumped in and bought at exceptionally low pli prices and we've not been open for one hour. >> is it like a garage sale or fire sale and some great numbers. the market was not unreasonably priced out of whack like 1987. ashley: apple is almost to the price it closed on friday, essentially flat in the session now. stuart: amazing. ashley: amazing comeback. stuart: we've been covering the market, covering the fed, covering the domestic market and even touched on politics here at home. let's get more in depth of analysis, what's going on in china. gordon chang is with us. you wrote the book on what's going on in china. here is what i'm interested in. chinese authorities seem to have lost control of their stock market, and their economy.

and there are rumblings about what's going on internally as a response to that dreadful fire. and now, didn't they hold captive the head of the metals exchange? the civil unr he is -- unrest, isn't that correct? >> all of that is correct. the problem here, as you point out, is a failure of confidence in chinese leaders and the problem is going to be really deep. because as you know, i thought that the chinese authorities in the last half hour of trading in the afternoon session were going to come in and erase everybody's losses today. they didn't do that. there was a small rally in the morning session and created basically 11% jump upwards and overwhelmed by sellers later in the morning session and throughout the afternoon. that shows that the chinese leaders indeed have lost control of this market. stuart: what's the little guy going to do? 80% of the trades in china are off the little guy, mom and pop investors. what are they going to do, the

government says no, no, we're not going to bail you out. >> they're going to do what they've done the middle of july, basically bailing out of this shth ma-- market. essentially the only big buyer left in china is the chinese central government. stuart: it's a very serious situation. >> they've lost control of the economy, not growing at 7.0% it claimed, probably not growing at 2.2% they privately talk about in beijing. i think it's sort of like, 1, maybe zero. if it's not 1 or zero today, it's going to be there very soon because they cannot affect the direction of the economy. they can slow the problems and they've done that now for a number of years, but i don't think that they can change the overall trend and that's going to be the problem for them going forward. stuart: are we going to have more days like this in america where they're reacting at least initially to a selloff in china? >> it's definitely going to happen again.

the shanghai composite was down 8.5%. if they didn't have the 10% down limit for each day, they probably would have been even more than the 8.5 and clearly, if there wasn't the government support in the morning, it would have been down much more. so, this is going to be stories that we're going to see day in, day out for the next couple of months. stuart: thank you very much indeed. i want to bring in liz claman. almost as much experience covering these things as i have. >> almost. stuart: i think i've got 20 years on you. [laughter]. >> i'm only 15. >> okay. you've got that out there. we've got a market, and this is par for the course on days like this. >> how stupid would people have been to panic, 1,089 this morning, sell, sell, sell. you do not sell at points like this, you wait and watch it flush out for a moment. you were talking whether we could end higher.

i got off the phone with mark who is trading for 30 years, outdoing both of us. he said you might see the market maybe close down 200 points for the dow today or flat. just don't panic. >> very, very good point. down 343, i would expect another leg down, you can have volatility. and people thought friday, i'm going to nibble here, that's fine, and as we saw this morning, it happens in jagged pieces. and therefore, it's never just a straight move. >> it's never a straight down. it never ever is. >> goldman sachs sent me an e-mail, there's talk of market liquidity and remember, we had the conversations and saying it's easy to say and it's hard to paint the picture, and it's is step into the unknown, this is a known, unknown, so to

speak, we're testing now, market liquidity. stuart: to recap before we go to our first commercial break of the day. down 394 on the dow and oil down at 38, interest rates rallying back almost to the 2% level. back in a moment. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul?

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stuart: you know, maybe i should've said absolutely nothing. i did say the dow industrials were down as an amendment near 300. in the space of 90 seconds with gone down to a minus 500. that's a little bit of a pullback from 90 seconds ago. gary kaltbaum is that that's joining us from orlando. your headline is things could get a lot worse. explain yourself.

>> i don't believe markets popped out and drop for a few days and everything is a-ok. i'm a real big lever this action is telling me something. it is telegraphic recession around the globe. it is going to cause it and i think there's a big problem ahead. i can figure the next few hours and tell how sick i am of government interference in markets whether it be here in china but a lot of this is caused by them and i'm hoping one day they get the heck out of the way but i doubt it's going to happen. stuart: stay there. i want to turn to liz claman who's got an interesting numbers. >> two minutes after the markets in. 9:32 a.m. eastern, celgene is a biotech down 20%. right now it is down 2% to 3%. apple was down 12%. stuart: it is down 2.6%.

>> visa down 11% from a starbucks on%. two to three markets into the opening day of back off the floor. i would argue with gary that there is a 19 s&p correction since world war ii there'll be many more in our lifetime. i was a two-year point it takes about five month to recover but it is not something we should see is totally unexpected and completely panicked about to make it worse than mars. >> this action is caused because there's too much leverage in marketing the system because of the central bank's easy money policy. by 15%, 20% drop is already there. the nasdaq was 18% in just a month in the dow was 16. i put in no doubt this morning that were going to start seeing 300-point moves in a matter of minutes. i never thought i'd be so happy

with the dow down for 500 points. i just really believe there may be something more nefarious here than what we see right now. i am hoping this is the 1998 where we have a gigantic drop and then off to the races again. i'm just not so sure. i worry about economies around the globe. take about this. 0% interest rates for seven years and depending which advocates the use, 15 and $20 trillion for no wicket is 2%. that's pedestrian at best. stuart: we hear you. i've got gordon chang with me here. the chinese economy is simply not growing virtually at all. here's my question. a huge slowdown in china. does that mean recession in america? >> i don't think so.

they could go through what japan did in the 90s. you had a decade or two decades of recession like stagnation. china will probably have a crash and it's probably going to take a long time to work their way through it. fellow panicked investors around the world. we have very strong. we are going to do very well. even if it hurts us we will hurt less than everybody else. >> what is the chance that the chinese government prevents negative news coverage and then back to china continuing to be a black box for investors. they censor whether support. you can even make your own weather report. >> they sponsor bad economic news already. shanghai composite numbers can sponsor that and that comes through in panics people. >> kerry called bob from orlando. i can also hear charles payne

joining us on the phone. i think your headline is this is all the motion. is that correct? >> heidi got a thousand points down and thursday into the late friday. the market does things interesting considering how much individual investors have taken out. never been able to understand why it fell high vis-à-vis that. i liz claman planet that the antacid. there have been signs. i was on your show and we were already in a stealth bear market. although a lot of stocks down more than 10%. more winners than losers, but is masked by the big winners. one thing i will say and i don't want to sound too crazy to

bourassa 1000 points in the dow. the better it is with respect to fleshing things out. stuart: we hear you. he wants the flushing of everything. >> as far as al gore sessions are concerned if an anemic economy here and i think we should get rid of the government affairs because it does nothing. it's not free-market the way they've been described or should be. it's unfortunate. stuart: this is real volatility. a few moments ago we were down 500. ashley: it was twice the monthly average. a lot of people into the market. >> one thing is obviously the last 30 minutes of trading. that's why it's all people not to buy anything late last week or today. the last 38 minute are the two things the market wants to say. >> we shall be watching for

that. thank you, charles payne. lives. >> that's my show. the last half-hour of trade is going to be crucial. that is the part you can see how this may well play out. down to the new york stock exchange work in the traders. a whole show but the really smart people. you can extrapolate a lot even with a trade account in your parents basement. you can back into the data by looking at iron ore exports from australia and see what china is doing. china's growth looks to be about 5%. stuart: you are not remote at iron or futures out of western australia. >> it gives you a sense of how that china really has. china was the biggest user, biggest buyer of iron ore because they were growing and now they nod.

stuart: i'm the only person you'll ever meet you'll ever meet his mentor at iron ore mine in various other places in northwestern australia. 40 years ago. gary kaltbaum, are you still in orlando? >> we are still here in mickey land. stuart: 20 seconds to close it out. >> i want to make sure everybody remembers we dropped two or three points. it is normal to bounce from here. hoping we get a flush out. i think it can be a little. i'm not sure it's the low. we have all the evidence we need. chinese coast cities a lot of economy is fraudulent. the numbers are not what they say they are. stuart: thank you for joining us. the sector report for you. even on a day like today we did the sector report.

the top five dow losers on this historic day. i'm squinting that i can read it. these are down 3%. lives, to your point it was down 11%. stuart: jpmorgan was down 3.5% san francisco down big earlier. coming back it was down 3.5%. a lot of big losers on the dow, but not as big as it was. down 367, a mere 2%. back in a moment.

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>> i'm nicole petallides with your news business race. this morning i saw the biggest sellouts ever in terms of points here on wall street. the dow was down 1089 points from a loss of 6.5% almost a circuit breakers. right now down 2.5%. we are watching some of the names that saw the worst of it. jpmorgan n. g e. have been down over 20%. right now she eat down about 3%. merck is down 18%. let's take a look at apple hitting a new low of $92 at 104 and change. elected at 130. do you love it now? the index surging again.

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stuart: we've got a hot oil market today. we plunged $37 a barrel, bounced back to 39. larry lovell, come on in,

please. i'd better ask your question i'm i'm going to ask everybody. 37 we did catch today the bottom? >> it's a new contract low. never traded the love that. i don't think that's the bottom. there was a rally in the $40 level. a lot in there to push down below $37. stuart: what about the medals in grade that you trade there. are they also sharply lower? >> the grades are. field of place that isn't sharply lower is gold and silver. while they are a little bit lower they aren't a whole bunch lowered and are keeping up with other commodities. fresh metals holding a little bit, the others not so much. stuart: what does that tell you when almost everything is done at the same time. >> certainly a lack of

popularity. everybody wants to be short. nobody wants to be long. kind of like social media. when nobody cares about it nobody cares. everybody is not interested they are selling rockets in their proper ways to go. stuart: that could turn very quickly. >> is absolutely true. dow jones is a good old. gorelick 600 points from there. in the grand scheme of things it's looking pretty good. stuart: larry, thank you indeed. the price of oil will go down at some point. come on man, dominic from diversified financial consultancy says buys something. don't panic. >> stuart, i literally sat on that with lives in the fall of 2008 the day the market was down 733 points to close slightly

over 8500. a lot of people panicked that day. and a lot of people haven't been back since. even after today they would've doubled their money. in a good dollars portfolio of things that today. the fixed-income side of your portfolio. health care. these are good times to take it as an opportunity to rebalance your portfolio. look at things still positive things he would've wanted to rent six months ago, 12 months ago and start the process slowly. stuart: are you suggesting the big names that were beaten down badly at the opening bell this morning? >> look at a company like for rising. they have no business in china. domestic 5% dividend. we talked about apple and the cash on the balance sheet. i wouldn't sell my house and children and put it into apple. you start picking at these

prices. do you start taking the portfolio? you could've bought it on friday in your credit today but you don't do this in one fell swoop. use your way over time. it might get worse before it gets better. six months, 12 down the road you'll be happy to start picking at these prices. >> guys like you put a floor under the market. >> stuart, they are to have. somebody said into the market and looked at these main companies, quality companies, domestic large-cap companies sat at these prices i think it is worth buying it. i doubt warren buffett is selling today. i'm pretty sure he's not a seller today. stuart: thank you, dominic. liz, ashley, you are the voice of reason. >> warren buffett will not pick up the phone to chitchat with anybody today. when you have five down stocks.

stuart: you think you've buying? >> 1000%. they have fallen 20% from the highs. you've got apple, exxonmobil, intel. i'm not saying anyone of those might be appropriate for your portfolio but we decide greg louganis died at the start of the market deep into the water and you are waiting menace had pops up down 346 points. stuart: there is a lot going on. we've got to take a commercial break which would loathe to do when the action is good. but we are going to do it because we've got to pay some bills. back in a moment.

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stuart: we are talking maybe an element of stability on the stock market. how about an element in the oil market. we went from 37 to 39 as of right now. he studies the oil market very close with the chief oil analyst there. is 37 a bottom? >> it is for now. the forecast for prices in the 20s i don't necessarily see that. what happened was we got way

faster. stuart: but would it take to get the price of oil to $30 a barrel? >> you may get there when refineries go into maintenance. we have a pretty large scale made isn't coming out. stuart: less oil demand. >> they wouldn't run oil through the refineries. stuart: we haven't got enough space to store it now. >> i think will challenge that. stuart: given the odds, whether we going to hit $30 a barrel. >> i say 35%, 40%. stuart: that is pretty high. >> there is a lot of oil right now. opec is producing gangbusters. stuart: 30 seconds before we take another commercial break. >> eventually it's really closer to take a road trip for labor day weekend. we got close in the winter time and look at close hand.

two dollars a gallon. thank you very much. >> my pleasure. stuart: we will be back. just one moment. two streetlights. the only difference: that little blue thingy. you see it? that's a sensor. using ge software, the light can react to its environment- getting brighter only when it's needed. in a night, it saves a little energy. but, in a year it saves a lot. and the other street? it's been burning energy all night. for frank. frank's a cat. now, two things that are exactly the same, have never been more different. ge software. get connected. get insights. get optimized.

stuart: what a day. we're now 90 minutes into the trading session and you can't imagine what we've seen so far. the dow industrials were down 1,000 points at one stage. now we're down 349. that is a 700-point turn around. you don't see that very often. but let's introduce you to a man who has seen this before. his name is jim, and he's been on this -- well, i don't want to say how many decades, but it's several decades is that not the case. >> yes. and we've seen this before. stuart: yes. and what we've seen in the past. i'm thinking 1987, 2009, very sharp selloff, and then a rebound to the upside. >> right. stuart: are we going to see that again today? >> that is the most probable outcome. if we assume that china, the

wheels are not going to come off. if we assume that there's not a credit accident due to the volatility that we're getting in currency and stocks and liquidity in china. so it's not a slam-dunk. but if that's true, we're in the bottom ink process, you've had a significant decline and although you may not be right off back to the raises, if you buy quality stocks on a day like today, you would be good in six months. stuart: and that's what you did today. you bought friday and today. >> and i'm buying today because my bet is we're going to live in a normal world that the u.s. economy will continue to grow modestly but continue to grow. that interest rates will remain low, and that stocks with the kind of dividend yields you've got at the open today, those kind of quality stocks will do better than bonds. stuart: so have we hit the bottom, jim? >> well, here's the risk. the answer is if we don't believe the lows at the open, then we bottom. >> at the end of the day.

>> the at the end of the day the market sells off and closes below where we opened, that's the risk. physiologies doesn't happen, then i would say we are -- we're there. stuart: let's put numbers on this. >> yeah. stuart: the low today was approximately 15.3. that's very rough. and those i don't have the right number in my head. but approximately 15.3. 15,370 i've been told by my producers. and that means if we close below 15, 370 that means all bets are off. >> that's right. stuart: but if we close at 16,000. >> right. stuart: and change or otherwise, that's a really good signal to you. >> that's a signal that this was a financial overreaction, people are weighed, the computers were selling, just like '87. stuart: yeah, sector and has it got worse than the fundamentals. stuart: will you tell us what you're buying? can you do that? >> i'm buying quality mutual fund portfolios, you want to

stick with quality names, do not get back into the momentum names. stuart: a lot of our viewers won't know what a momentum name. apple, netflix. >> no. apple is okay because that's more of a real company with real earnings and cash flow. but when we were here a couple of weeks ago, there were six stocks leading the nasdaq, the decline was going down, it is six stocks were driving the nasdaq higher. do not get back into those six stocks. you don't want to go into those momentum stocks, they're broken, very hard to value them. buy stocks -- let me give you the example i'm not supposed to talk about. but if you buy ge at 4% yield, those types of stocks. i'm trying to steer you in the right direction. stuart: that's exactly what adam was about to chime in on ge that opened 10% down. >> yeah. it opened at a 52-week low, if you jumped in at ge, it's trading right now

at 26.26, you've made money on ge. it's up, like,. stuart: 25% you would have made. >> yeah. but that stipulated you had to have some money on the side as people panicked. stuart: very strong summit. >> very strong. but 20 of the 30 dow components hit 52-week lows. who doesn't like mcdonald's; right? they hit a 52-week low, at $94.46 right now. and apple. but what about the boeing? boeing hit $115.14, that was the low, so people -- or computers, are making a lot of money right now based on that first 30 minutes of pan that i can we saw this morning. stuart: okay. now, james you've seen this before. >> yeah. stuart: this is -- i'm going to say the first hour of business we're not even there yet. first 90 minutes of business was a very emotional time. >> right. stuart: and there was a tenancy maybe to panic because look what's happening, the dow is down 1,000 points, the end of the world.

>> right. stuart: your experience says don't ever go to that motion. >> the way it was taught is to have fear when there's greed and greed when there's fear. two or three weeks ago when two or three stocks were doing well. stuart: i hate to bring up the fed. >> yeah. stuart: because i think it influenzas exaggerated. but i'm going to bring it up anyway. they are supposed -- >> exaggerated? you said cheap money? . stuart: okay. okay. okay. >> come on. stuart: just because you've got a british accident, doesn't mean you can get away with everything. but, look, the analysts believe that we're going to raise rates next month. >> right. stuart: surely they're got an raise rates. >> well, the probability is certainly gone down a lot. let me say that a 25 basis point increase would not affect the economy a lot, and i actually think i'm a am i norton who did if they say, hey, we think the economy is

doing okay. rather than -- they're in a box, they raise and they don't raise then they have no ammunition the next time we have a recession, i would like to see them go ahead. stuart: you would like to see them. >> because it's them saying we have faith in the economy and if they're wrong, they can lower it again. >> they're going to be looking at the employment numbers and the -- if there's still growth in the economy. that he is what they're really going to make that decision on. and you were talking about with some guests on who didn't be they're boxed into a really bad corner because if they don't do it after getting everyone set up that they would do it, what does that say? the economy is far worse than what we think it is. stuart: so are you sharing that the fed has some share of the blame of what's happening recently. >> absolutely. stuart: it flooded too much money for far too long. you agree with that. >> absolutely. they missed the opportunity to raise rates a few meetings ago. stuart: why did they do that? were they worried about a market selloff or political pressure from the administration. >> no. i don't think -- i think jenna really comes from the dubbish campaign.

she wants to see the wage growth start to accelerate, and she believes in that school of economics and another school that all she's doing is inflating asset bubbles and we're paying for it today, and she would have been better to go with the economic data. >> christine, twisted her arm in private, the head of the imf begging to not raise let's take year. stuart: really? >> yeah. stuart: i didn't that know. i don't think the influence of the federal reserve is exaggerated. i just think that tv programs like this one spend far too long naval gazing about qe3 whether the dow -- what's going to happen with the money supply and all of that sort of stuff. we spend too much time on it. >> right. absolutely. you've got to look at the basic under line fundamentals and there's pros and cons to what the fed has done. but right now i think people would like to see the beginning of the path of complication.

>> mortgage rates are probably going to come down in the next week or two weeks regardless of the fed. stuart: all right. you know what we need? a professional trained economist. and it just so happens we've got one. his name is steve moore. big smile, steve. >> screwed up everything. what are you talking about? . stuart: true but we'll ignore that for the moment. all right, steve. here's my question. we've got a wopping great big selloff on wall street thursday, friday, and monday. >> yeah. stuart: does that have a direct effect on america's economy? it pushes down closer to recession? >> of course. there's no doubt about that. but, look, when asset prices fall be they spend less, so there's no question about it. if this was a sustained bear market then, yeah, this could push us into -- not a recession but zero to 1% growth range and what we've been arguing is we should be growing at 4- 5%. and there's a lot of talk

about fed, china, europe, and what isn't being talked about enough is what's happening here in america politically with these elections on the left you've got hillary clinton and, you know, you've got bernie sanders talking about raising tax rates through the roof out of quote fairness. and then on the right you've got some crazy talk by donald trump about shutting down the trade -- you know, the trade routes all over the world and shutting down immigration. i think it is things are negative. i'm not saying they're a major power, but i think they have contributed to this right now stuart: there's a great deal of anxiety because when you look around the political scene, what's the plan of action? >> exactly. stuart: on the left you're quite right. it's a new entitlement program from hillary. >> yeah. stuart: it's tax, it's spend. >> yeah. stuart: it's beat up on the billionaires. and on the right there's not enough being said about lowering tax rates to go for growth. that's just been lost in the clutter here. >> well, put. and when you have donald trump talking about raising tax

increases, they're tax increases crests on consumers. they hurt world trade. now, look, i think this is an important point. there's no leadership in the world right now. and this is something that is adding to the kind of sentiment that's out there and where is the growth going to come from? do you think there's any chance in hell that the white house is going to come out with some grand plan to cult taxes or. stuart: what did she not going to happen. >> reduce the economy? last week they came out with same regulations on natural gas the week before that, they want to cripple our coal industry. where is the leadership in the world? where are the winston church hills and where are the ronald reagans? they're nowhere to be found right now. stuart: what would you -- if you were the president of the united states in the unlike event that steve moore is our next president, what would you stand up and say the moment you're elected? >> i would say we're going to start taking in this country competitiveness seriously. we're going to burden our tax

rates down and give america an edge over the world, we're not going to shut down our natural gas and coal, stuart, we're going to go for all of it and sell this all over the world. we're going to get this regulatory shabble off our industries and you know what? this is as important as anything. we're going to have somebody in the white house and hopefully it is someone who basically is pro business. who wants american businesses -- stuart, you've been doing this show for years. when is the last time this president or anybody in the white house or even anybody in congress said something about the business is good. stuart: never. they're bad guys. >> yeah. stuart: they're billionaires and messing around with the people et cetera, et cetera, et cetera. not going to happen. i know that's what you want to happen, but it is not going to happen. >> but we've got to start that from the republican candidates. we want to see jeb bush and rubio. stuart: donald trump is just taking all the oxygen out of the world and talking about china and immigration.

he's not talking about growth. he's not. >> and he's not talking about tax cuts and you're exactly right about that. the thing about donald trump is he's diagnosed exactly the wrong problem. there's incompetence in problem, they don't know what they're doing. the problem the solutions he's come up with are the wrong ones. as you know steve forbes are hoping to meet with him next month to maybe get him straightened out of how do we get back to 4- 5% growth, it's not the tariff we had in the '30s. stuart: adam, you dying nothing further? >> yeah. you want the ammunition for the tax cuts the first of the year. record revenue, 2.6 trillion in tax revenue. it's going to be a record year for the tax revenue and 47% of that comes from individuals. you want to boost this economy. you want to put people back to work. that's where you start. what steve was saying. stuart: james, you don't care about politics at all, do you. >> well, i certainly do when i

went with what you're saying. we need a ronald reagan. we need somebody less regulation, freeing businesses, lower tax rates to stimulate growth and none of these candidates are talking about that. they're going to raw emotion of people who were suffering rather than create logical outcomes. stuart: james, thanks for bringing your experience to the table. the dow is down 450, let's see where it is when we come back from this break

stuart: phil flynn, oil guy, right there at the cme. we have seen oil bounce from 37 to 3937 phil flynn, you're going to tell me why we bounced back up again. >> we bounced back because the global stock market took a breath here, and we bounced a little bit. when we saw all of the circuit breakers at the cme group go into effect, which caused a pause in the trading and allowed traders to step in and actually buy. that gave everybody a chance

to catch their breath, and then some buyers could come in. the question is whether that's going to be sustainable or not to bring us up higher. this is a very critical area both for oil and the stock market, stuart, because, you know, if we can get that confidence back, it would be huge. stuart: hold on a second. >> the stock market is going to have to bring back the globe. stuart: i want to know what leads want. does stocks lead oil or does oil lead stocks. >> it's like a dog chasing its toil. originally was the oil market leading the stocks. they were signaling something was wrong, today now it's the stock market that's going to be leading oil because oil -- the stock markets are now controlling everything. and i do think this, you know, stuart, if our economy is that strong, it's going to be up to the u.s. stock market today to bring stability back to the globe. if we can get a sustainable rally off of these lows, maybe even close higher in the day, that might be the signal that

the global economy is not in trouble. but if we go back down and fail, that means we're going to be in for a very ugly week i think this week. stuart: okay. we shall see. thank you very much, phil flynn. put that graphic back on the air. that's 9:35:00 a.m. eastern time this morning. that was the low. 1,089 points down. that's a 6.5% drop. look at it now. the dow industrials are down a mere 2.8%. 400 points. we'll take that. to come back 600 points, we'll come back 600 points. i'm not saying it's stability, i am saying it's a pretty decent come back in what -- >> almost a 600 point come back. stuart: in two hours we've come back almost 600 points. >> uh-huh. stuart: not bad. intelligence reports trish regan. she has an interview with republican candidate carly fiorina later on today. just watch this for a minute. >> actually i've been expecting a correction for some time now because the

under lying fundamentals of the u.s. economy are not that strong, 2% growth is pretty lackluster. of course now we have the fed backing off on zero percent interest rates and china's economy is slowing, there's no doubt that they have real issues in front of it and the devaluation of one as well as the huge selloff in their markets spell trouble ahead. i think people have to take a look at the under lying fundamentals and what they see is a economy growing at a lackluster pace, 2%, they see economies around the world slowing, china is not doing well, china is slowing dramatically. so what i think what people are now focused on are guess what? the f. fascinating. they have a presidential candidate offering up advice or analysis strong, positive, good analysis of what's going on in the stock market. you don't see that very often. the full interview will air this afternoon at 2:00 p.m. on this network, the fox business

network. and look who's here? the lady who did the interview. her name is trish regan. that's a great interview. >> you know, she's very intelligent on the markets. she was a ceo for a major company for quite sometime. she knows what she's talking about, she made the point and i think a lot of us working here this is a long time in the making. in other words, we've known for six plus years the fed doing every single thing they can -- stuart: and critical on the quotation its economic policy, and i think maybe inherently critical of the federal reserve for pumping out too much money for too long. >> yeah. and you create other asset bubbles. it's the long unintended consequences. they may have had good contentions, but six plus years, not because of fundamental growth but because of other reasons. it's all the financial engineering that we've seen. stuart: yeah, but you go run down the list of who's to blame of what we're seeing now. well, you can start with

the federal reserve, policy went for too long, et cetera, you can blame china that have lost control of their economy, lost control of the market, and you can also blame president obama. >> yeah. stuart: his policies. >> is absolutely. stuart: now, look, i'm a conservative. i'm naturally inclined to this objectivists. >> no, but i think realistically anybody would look at this situation, i have to tell you i've had ceo after ceo come on and tell me this and this is something they continue to say repeatedly for some time is that they were getting no clarity out of washington. it's all poor leadership from obama. he hasn't bringing both sides together, you had a government shut down, you have the threats of increased regulation. none of this. >> but the selloff that we saw and that dramatic 1,080 drop we saw this morning, there was a that recall pointed out only 3% of revenue of the s&p 500

companies are in china, caterpillar, apple, they're going to have china prisons but the state was the issue that that ceo was talking about. where's the direction, where's the clarity where are we going? we've -- we cabinet can't be sustained. stuart: what's the plan? all i hear from hillary clinton the leading democrat, she wants a new entitlement program, tax the rich. >> yeah. stuart: that's not a plan to get us out of the economy. >> that's a way to buy votes. stuart: your show is at 2:00 eastern time on this network where you've got the full interview of the carly fiorina. >> and we're going to continue the selloff of this market. stuart: yes, you are. historic day on the markets. extreme volatility. we were down 1,000 points at 8:35:00 a.m. eastern time this morning. governor huckabee will be on this program a little later. we'll be right back after this commercial break ♪

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comcast business. built for business. ♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. . stuart: we are now down 469 points. that's nothing. we were down 1,089 points at 9:35 eastern time. charlie gasparino joins us, and time talking blame here. charlie, you first, who takes the blame for what we're seeing on the market.

>> your term is fed is going to raise at some point the interest rates plus the chinese economy. long term, the root cause is the obama administration lousy fiscal policy, and the fact of the matter is we haven't had a coherent policy in eight years and the markets know that. stuart: okay., tom sullivan. >> the federal reserve. a lot of people are putting a finger on china but china is such a small portion of the s&p and where why is the s&p down so big if we export very little to china? so you look around, you go the fed and the european central banks, the central banks have wilt a "house of cards," and what did he like about that coming down on top of what charlie said. we have weak anemic economic growth. they have built a "house of cards"." stuart: wait a second. if we're blaming the federal revenue, you're blaming the federal reserve for the policy over the past six, seven years, not the possibility that they raise rates next month. >> there's no way. there's no way they're going to raise rates next month. >> i'm not ready to flow in the towel on that.

i think have made boxed in. they've been signaling that they have to normalize rates. if they don't do it now -- >> they can't do it. >> they're going to look even worse if they don't. stuart: if they don't do it now, the economy looks even worse. >> that's exactly right. >> this is a product of what charlie was saying. bad political leadership and these returns that will be negative in the stock market are going to put burden on pensions nationwide and they're going to have to go to taxpayers to make their annual obligations. this is a nightmare scenario. no one wants to talk about it and it's because of a lack leadership on the economy and the pensions going forward. stuart: we have no plan to fix this thing. >> well, that's the problem. >> you think the fed's going to change anything any time soon? >> they can't. they've boxed themselves in. stuart: what about the president obama? we're going to get a tax cut? >> record revenue. there should be a tax cut. we have record revenue in this is a anemic economy and we still have record tax revenue . stuart: when you look out on

the horizon, hillary clinton wants a new entitlement program, she wants to raise the taxes, spend more money, that's not going to get us out of this fix. charlie, go. >> it won't. and, you know, listen, when things get crazy as they're getting a little crazy right now, voters do crazy knowledge things. president trump looks -- >> you would love that. stuart: now, wait a second, charlie. that's interesting. because trump is really making a running. do you think that because he's making the running, this market is down a little? are investors worried about trump? >> no. i'm just saying when you have this much economic uncertainty, which is what the stock market is showing, investors and voters do crazy things and one crazy thing they did was put ronald reagan in office, which turned out it be a good thing. they go from average and the next thing was put barack obama in office, which hasn't been a good thing. stuart: manage money. >> right. 35 years. stuart: now, wait a second. what are the odds that we

close higher today. >> pretty slim. pretty slim. [laughter] >> i think we're going to have -- this is the -- i think we have at least a couple of weeks. the market's historically whenever you have a big down draft, it takes a couple of weeks to catch your breath. stuart: thanks, everybody, i know you're going to come back after this commercial break but thanks very much for this performance. we've had a historic day on "varney & company." and if you're just tuning in, here's what you missed. >> it's not just china, it's not just united states, it's also europe. about austerity versus government spending. they didn't discipline greece. there was no fiscal discipline imposed there. so where do you find the growth? where's the safe haven here? you showed the oil price. to me, what that's saying is we recognize that global gdp is shrinking. like that growth is nowhere. >> how stupid would people have been to panic when it was down 1,089 they really morning. sell sell sell.

you do not sell at points like this. you wait and watch it flush out. >> when you have a president that wants to raise taxes, impose regulations, do all the stuff that destimulates the economy following a market crash like we had in 2008 and 2009, the fed -- it's imperative that the fed acts and lowers rates. that's why -- that's the root of the problem. it's obama economics. it created this and now we're paying the price

stuart: maybe we've got a little stability. the dow is now down 450. please remember that two hours ago it was down 1,089. if you can take that as stability, okay. we'll take it. down 453. eric schiffer is with us. the founder of patriarch equity. and you say this is the beginning of a lot more pain. it gets worse. make your case. >> absolutely, stuart. look, i've predicted this for some time. you could talk to your producers. i think that the destruction, the real disasters ahead of us. i think this is largely caused by the fed in part china. and we are not in line with fundamentals, given the fact that the credit game has changed that the fed has changed significantly. stuart: okay., eric, do you think the fed will raise

interest rates next month? >> not a chance. not a chance. stuart: okay. do you think china creates a recession in america. >> look, it's possible. i think that the likelihood is not there at this point. but i think that it's possible and that's a concern. there's no question. china is getting decimated, i have a lot of friends over there, and it is bad. . stuart: okay. so if it's not bad enough to cause a recession here and the fed doesn't raise interest rates next month, why douse that we face a we'll catastrophe that the pain is just beginning. >> well, i think the market is way overheated. so, again, when i say a catastrophe, i'm talking about the stock market. i think there is a lot of pain and the disaster is just ahead and it's largely because of what i said. the fed has created this. unfortunately, it's out of whack with the fundamentals. you have a lot of demand that's just drying up.

when you look at oil, and that's one of the indicators that continues to drop in terms of demand. the shipments from china to europe are down significantly. that's another tell. and this is in part china driven because china has led the world for so long. stuart: eric, give me a number. we're at 16,000 on the dow jones average right now. how low is low? >> i think we could see up to 30, 35% down from here. stuart: okay. now, i'm going to do the math. that means we hit 10,000? >> i think you could. yes. you may even go lower than that. it's possible. absolutely. given all the facts. stuart: what's your time frame? >> look, it's hard to know time frame. i think in terms of the short to immediate term period likely within the next weeks to six months is the time period that i would say. but, again, it's hard to know exact time period. stuart: okay. but we hear you

and that's a confident prediction. thank you very much for joining us. all right. look who is here now. republican presidential candidate mike huckabee. great to see you. >> thank you, stuart, great to be here. stuart: one of the complaints that we've voiced all morning long is we don't have a plan to get out of this mess from the administration leading democrats. well, you're a leading republican. briefly, sir, can you tell me what is your plan to get out of this mess. >> well, the biggest thing we need to do is pass the fair tax because it transforms the economy in a number of ways bringing somewhere between 11 and $21 trillion of capital back to the u.s. capital that's parked offshore that is not helping us right now. it makes it easier forebusinesses to stay in business so they're making business decisions, not tax decisions. it takes away the burden of taxation from the owner and the worker who doesn't have anything taken out of his check. these are fundamental things that would transform the

economy and get us in a work-based economic boom. uarti wod ablute ree th y. expt tt th eleion d is cpaigseas tha we'vseeno fahas t be about growing the economy. it's been about other issues. immigration, for example. it's been other issues not the economy. can you as a candidate get us back on track towards prosperity, tax cuts, fair tax, how are you going to do that. >> well, if you give me as much time as you have given all the other networks, certain other candidates wse nameu we will be talking about the economy. we'll be talking about putting people back to work. 2009 how to make so that a person can go into business and not be fighting his own government more than he is his own marketplace. and one of the reasons the whole economic situation was like stalled is for the first time in american history, business owners are figuring out how to shrink their

business, not how to grow their business because everything tells them to shrink. keep it under 30 hours a week, 50 employees. obamacare is a anchor around the necks of a lot of business owners and especially small business owners, stuart, because it had don't have the resources to hire accountants and lawyers. stuart: governor huckabee, thank you very much for joining us. and, yes, sir, you can have a lot more time. come on this program, please. i have to say on a day like this, you're very short on time, and i do apologize for that. come back and see us soon. thank you, governor. >> thank you. stuart: we do have, again, i'm going to call it stability. probably the wrong word to use. but now we're down 386. the dow industrial down just 2.3%. yes, this is a huge drop by any standards. but it certainly beats the performance at 9:35 eastern this morning when we were down over 1,000 points. peter is with us. he's a professor of economics that leading university.

joining us on the phone. now, peter, we've been talking about blame for this. some people blame the administration for poor economic policy. some people blame the for the record lousy financial policy. but i think you blame china; is that correct? >> well, absolutely. this is -- this is a series of bubbles that are bursting. china is a bubble economy. its got an industrial bubble. easy credit, credit that should never have been let to so many industrial enterprise that flood the world with good. sometimes lower the cluster of materials to make them. lots of subsidies. a property bubble. and now a stock bubble that was created purposely by the government to try to encourage the ordinary chinese man and woman to buy stocks. stuart: okay., peter. can their bad shape create a recession here in america? >> absolutely. i'm not saying that it will, but it certainly could because of the effect. if you look at the

fundamentals, i do not view u.s. stocks as overvalued by historic standards. if you look at valuations over the last 25 years, we're not that far off. if you look at them over the last ten years, of course we're off because those numbers are dominated by the did yo bubble and that's the comparison that people make. the 2007 bubble. the fundamentalists of the economy are sound, we're going to take a hit. not so much from the point of view of export revenues, that's going to matter. general motors, for example. sell so many cars in china, apple sells so many phones there. but the big feel diehl would be china trying to export out of this by flooding the markets even further. the administration is voiceless on this. stuart: so far. peter, i'm sorry to cut you short, but this a big day on the markets, and i've got to get back to that. peter, thank you very much indeed. adam, you've been chomping at the bit to get in.

>> china bringing us down, don't forget the chinese government has trillions of dollars in reserve that it can use to stimulate their economy and they don't have to borrow to do it. stuart: it's a global selloff, and we have another guest that says china's crisis means we're in for global collapse. back in a moment with that a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

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earlier this morning the dow opened, and it was a selloff. the biggest ever in terms of points. 1,089 is what we saw on the big board right at 9:35:00 a.m. and then we had some of the big losers that we've watched. the number one looser in the s&p 500 and that's down about 7% right now. and energy is the worst performing group of the 10. all ten are lower followed by financials. but some of these names such as marathon, apache, you can see some of these names getting hit hard today. and the big losers on the s&p and oil down as we talked about that six and a half year lows. and netflix, trading at 85.50 today but has recovered some like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration.

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. stuart: all right. listen to this one. my next guest that believes china's economic mess crisis could cause a global economic collapse as soon as next year. joining on the phone. the gloom doom publicker mark farber. i'm very short on time. you've got 60 seconds to make your case. go. >> well, i think portfolio managers and the investors around the world suddenly realize that the chinese economy is much weaker than they ever thought. and that china had enough

growth for the global economy after year 2000 and particular after the financial crisis. and if china no longer grows, then other countries and multinational companies -- don't forget gm has 35% of its sales in china will be hurt. and this realization for just asset prices, which were growthly inflated on the downside. having that said, the market is very over sold now and can rebound meaningfully any time soon. but new highs out of the question. . stuart: okay. mark farber, that was about 53 seconds and that was rack remarkably concise, and we heard you, mark, and appreciate you being on the show. >> thank you. stuart: and china is indeed

the source of grave concern that valuation levels because of china are far too high. however, he said you could have a bounce back tenant for our stocks in the short-term. deirdre. >> 100% in agreement with mr. farber. he does know what he's talking about in my view especially in this case. i mean capitalism, this free market, that's new for china. they thought they had more control than they did. we're feeling the effects of that but i agree. i called around a lot of trading desks this morning. there are hedge funds that are buying the names that they want. netflix, facebook, and apple. stuart: you picked three good ones there because we had apple at 92 and bounced back. >> 106.39. stuart: up on the day i think. >> up on the day half a percent. stuart: we had netflix down and up to roughly 100 i think. >> 101. >> today is the day to buy the stocks that you want to own. stuart: okay. one quick point. tom sullivan is still here. david jones.

expert on the fed. just told me -- our producers, that he thinks the fed will raise rates next month. and if they don't, it would make the bubble a whole lot worse. >> adam and i are going to go wrestle after this because i think it would be a disaster if they did. it reminds me of the late 1930s when they took the recession and put it to the great recession. stuart: it's a disaster if they don't because they make the bubble worse. >> i understand their point. but the problem is this is how you take a bad economy. we're so fragile. growing at 1.4% over the last six years. that's nothing. you've changed those rates up, 1.4 over the last six, and i tell you if you do that, fuhr turn this market down. turn the economy down i should say. stuart: okay. well, i'm telling you right now we've got a bounce back because at 9:35 eastern time he we were down over 1,000 and right now 317. that's less than 2%.

sure that's a huge drop by any standards. nothing compared to 1,000 points lower, which is where we were two hours and 15 minutes ago. all right. there you have it. you see that time stamp? that's very important. that's -- clunk clunk clunk. >> 6.6%. stuart: so, deirdre, we're passing around the table here. do you think we end this day flat? >> i think flat or the range minus .2, .3% i'll put a wager on it. stuart: i'm not going to bet that. about, look, we're coming back now. now we're down 292. so we've actually come back 700 points plus, 800 points from where we were. >> with that said, mark fauber's points, i don't think you can ignore for the long term. china is supposed to be this big growth engine, $17 trillion economy. stuart: but our viewers are enjoying this come back. they are enjoying this, and you've been giving us great information on the stocks, which have rebounded

enormously. >> apple is the one following, 92 all the way up to 107 now. 25. >> actually hit a circuit breaker stopping it from going up because of the fact that people dumped for it and bought ford so fast they had to put a circuit breaker. stuart: why can't that happen to microsoft? [laughter] stuart: historic day. we're watching the markets, first they plunge, come back from 1,000 points down to a mere 263. have you checked your 401(k) this morning? don't. back in a minute

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call now, request your free [decision guide] and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ stuart: look at that. that amount is a near 900-point rebound. i'll take it. gerri willis is here, why can't i look at my 401(k). >> you can look at it don't touch it. stuart: why. >> because the mutual fund if you buy or sell now, it takes more than a day to settle. you don't know what the world is going to be like tomorrow, let's wait this out, let's see what's going on. the best advice comes from john and he says this every time there's a big selloff. don't just do something, stand there. good; right? am i right? . stuart: but why not if you've got some individuals -- cash in your 401(k). why not buy something?

>> i'm not doing it right now. well, look, most of the individual investors in this country do not buy individual stocks, they buy mutual funds. 14% of americans buy individual stocks. so if you were in the mutual fund world, it takes you a little while. stuart: look at that. we're only down 190 points. that's a 900-point come back. >> i love this. i spit in the eye of china. you know, i have to tell you. [laughter] america and on fire. everybody's going to come to this market. why? we're the prettiest tourist in the glue factory. this is where you're going to get it done. stuart: i spit in the eye of china and we're the prettiest horse in the glue factory. do you have another gleesh? stocks plunged now they're coming back. tell you all about it in moment. more envy after this

>> varney & company came oned air three hours ago we're expecting 800 point loss for the dow.

the dow opened, down 1,000 and 89 point. awe, look at it now. talk about a turnaround 9:00 points. daigen turnaround that's macdonald. >> thank you very much. i give you full welcome full credit for that. did you think it would be a relief? well it is it is, it sure is, compared to how it was started. take a look at the market 213 loss and the s&p 500 is actually at this moment not in correction territory. if you can believe that, that 10% loss after falling more than 1,000 points last week. the dow opened at 9:35 a.m. eastern time with a 1,089 point loss. biggest point drop ever in the history of the dow