>> but you're cheap >> yes. >> you folks on penny movements in gasoline. when do you open up your wallet? when do you splurge? >> i never splurge [laughter] >> this is why you're a wealthy man. you just answered my question. thank you very much, my friend. but he watches every penny. well, a lot of folks are losing lots of pennies in this market. welcome, everybody, this is coast to coast and we are losing all of the ground that we gained since i came back. no, thank you, america, don't pin this one on me, pin it on a jobs report that has a lot

of folks that thinking maybe we can be china, we're going to get to it in a second, the dow down 246 points on what will be the off week for the dow as we start its most problematic month, september. charles payne on what could be unraveling things here, charles, what's going on? >> it's so funny. this is so axiom or, you know, sometimes these truisms that come out, the wall street bull market wants bad news. i've seen exact opposite over the last 12 months and certainly today under scores that. this is a horrible jobs report. no way to slice it -- yeah, i know august is typically revised. so let's slap on the extra 75,000 that only 147,000 jobs were created. >> revised about 44,000, so it's not as appears but we are seeing the quantum of jobs not keeping pace.

a lot of democratic jobs aren't going to break anyone's bank and keep the economy movie. but isn't steady as she goes the kind of thing that the federal reserve would at least like to see and hold off on any generating? so i'm going to answer that in a second here. but do you think that this should have been the half full for these guys? >> well, i know that the half full thing but if the feds hanging their hat on the number being revised, shame on them. here's the thing. population went up last month 2 20,000. but participation in the labor force went down 41 # 000. participation in the prime working age 25 to 54 is now under 81%, it was at 85% at its peek. almost everything we're looking for, people working part-time because of the economy, not because they choose so, soared up over 58,000. that's not necessarily the kind of things that i think is

the backdrop for a roaring economy. >> look at all the data, consumer sentiment numbers that are still fairly high, auto sales that are just strong. the basic earned penning you would hear this are sound and that we're not china and worry that we are. does this raise questions that we could be? >> it raises questions on what we could be. not what we are but what we could be, and i think this is what was resonating in a political arena with donald trump with those hats make america great again. i think the question is why aren't where we should be and can be. we're not china, i don't think that's in the cards. can we have a recession, the rest of the world's in a recession. possibly. but the more important question is why aren't we living up to our potential? listen, the youth 6 number which is the official government number for everyone. came in today where the u6.2%, double-digit

>> the unemployment rate -- >> right. that's the best under president obama. the best on bush and recovery, 7.7%. can web better? obviously we can be. we know we have to remove these regulations and the taxes and the rhetoric and i think this is one of the that's right. >> holding back the economy. the fed focuses on this one magical thing, they call it the wealth effect and the idea is when assets go up, your home price, stock market polite, you feel so good, by the way, your wages, you go out and spend and when you spend and somebody hires someone and goes out and spend, and the virtuous cycle and we all live happily ever happen. there's pieces to this. people don't want have the confidence in the economy. >> weird. all right. catch charles payne on this at 6:00 p.m. where he says how to make money. he does is brilliantly and he makes a lot of folks money. and if you're not watcher the

show, you're not making money. might as well go watch cnbc >> well, i think some people saying strong economic data, >> ridiculous. >> yeah. >> whatever you do with crumbs, you pick them up, you vacuum them, whatever. all right. we've got keith and dave here on what the federal reserve does right now. you know, charles was touching on it, james, this notion that it's between a rock and hard place, things certainly around holding on a bit but putting themself into a box and if they don't don't move it's the obama line in the sand thing and pretty soon people stop thinking you're serious. what do you do >> yeah. they do risk credibility if they don't move. it's time to move. lack of credit is not the problem. you see from the fdic data loan volumes are rising. big business is obviously can borrow and small businesses you see the nfb problems, they have no problem getting credit. small lows of businesses who can't get credit. the problem is they don't have

enough customers, they don't have reasons to borrow and that's not a problem the fed can solve? >> you know, i'm wondering. you could go the other way, keith, you could be so strong on what you promise to do, that is raise interest rates, that you do so destructively that you go ahead and do it even in the phase this time of clear weakness or weakening numbers. what do you make of that? >> i think that that's very, very accurate. this is a lot like bautista guantanamo. let's go break all the windows so we can fix them. these models don't work and they're focused on the wrong thing. no one says the stock market's up i'm going to go buy a refrigerator. all these numbers are hurting and the numbers are more cooked than a christmas goose and if the economy was going up, we would have a decrease in part-time america and those numbers are going in the wrong direction. pathetic can jobs report having spent billions of

dollars >> james, this idea that the federal reserve go that and hike interest rates, maybe not this month but december the next time they have a shot at this. what does the market do? because prevailing that it doesn't hike, that hell is going to break loose, what do you think? >> no. the market may go down and it's ain't crisis. i think it's important these mere zero interest rates were put in six years ago when there was a financial crisis. they kept them there. this is not a good report, it's disappointing, i was hoping to see 250k or more jobs. but it's not a crisis. it's the continuing slow, sluggish new abnormal of the obama years and there's no reason for the fed to think as they, unfortunately, have gotten into the habit of that their job is to keep wall street at an even level on the dow and the s&p. not their job is this is not a crisis. get out of the way >> you know, the flip side,

keith, the dow down 255 points, interest rates going down and gas prices are going down, that has been the case through much of the summer going into labor day weekend, prices are the lowest they've been on a labor day weekend in i think 11 years. so doesn't that provide some juice for this economy, those savings, that potential spending? >> well, it does. but, unfortunately, that doesn't come into effect for 60, 90, 1230 days from now. what i think looking at is the explosion. respectfully i would disagree. i think this is a crisis -- >> who are you disagreeing with? me or our friend james >> yeah. i'm not saying a -- >> our friend james. okay. just don't disagree with me >> i think it is a crisis because i think what we're seeing is the gradual unwinding of 40 years of bad fiscal policy and every element of the system is broken on the fed is sitting here looking data no data? reality? let's alter the data and

they're flying by the seat of their pants and moments like this make it clear to traders that have to mess with real money not the model. and this hurts the consumer, credit rates go up, default rates go up, all these car loans and house loans that are out there and everybody's so excited about, that's because the banks have money not because no class has money >> let me let james answer that >> yeah. i agree with a lot of it. whether you think this is a crisis or not, i think what we can agree on are the problems are not monetary and major. we have -- >> okay. >> yeah. >> too much regulation, taxes are too high. the fed can't change that >> big government, small wallet >> shrinking wallet >> yes. >> guys, i want to thank you both as these fine gentlemen were talking we're just getting news that senator ben has told politico that the approves this new deal with iran. and probably a point with the president meets with the saudis at the white house but he has indicated that this field doesn't do it for him,

but it has done it for 37 senators who have indicated their support for the deal assuring that it would go through because you know that overwhelmingly it's going to be rejected in the house and the senate but apparently not by the numbers that would override an expected presidential veto. but we might not even get to that point. well, i told you about that meeting going on with the saudi king. andy, there's all sorts of pressure now on the white house to explain to the saudis to explain all these other middle eastern nations that were concerned about this iran deal that it's in their best interest. now, how do you think that's going down at the white house now? >> i don't recall i don't think the saudis are going to be really too happy. the administration is going to explain it's better to engage with iran and have to view it to some of their facilities and the saudis are going to look at this saying the sanctions are going to be eased, iran is going to get

more money and. upset the tensions in the middle east even more >> all right. so taking all that into effect, >> yes, he had, you could look at it and say all right. well, this meeting must be important with the saudi king because they're adding a lunch on to it. sometimes you meet with the president, you meet with them but this guy's getting a lunch. so i'm wondering what does he want? what does he need? and what is he going to get from the president? >> well, he's probably going to get a lot more than what we're going to get, which is always the case when dealing with the saudis. what's really going on here, yeah, he's obviously angry with the iran deal, but he wants to have a price exacted from us. probably more pressure on isis, it could be more pressure on the regime. but the saudis have already banked this. you keep talking about the market talked care of different things and took into regard. the saudis have factored this in. they know like that deal is going to be approved by the united states senate, by the united states congress, the 98-1 vote in favor of the

corporate, all four senators running for president of the united states voted for this thing and share the responsibility for iran getting nuclear weapons. and they know it's all going down. so what they as opposed to more pressure on barack obama and eyes assad. they probably have weapons ordered from pakistan at this point and not going to be a lot more to talk about because there's not a lot more to talk about >> so everybody is going to have a nuclear weapon in the middle east pretty much is the rate we're going >> yeah. a big nuclear arms race, already going on, the israelis presumably aalready have them, iran is going to have the dominant nuclear force for a long time and you're going to see a war erupt rather soon over it >> that's always been the concern but the same week that the saudi king was saying, you know, we think oil should be $70 a barrel. well, i think i should way 170 pounds, that's not happening but the point

here is they'd like that. they can't even manufacturer or force that. what does that say about saudi arabia? what does it say about the leverage that opec collectively used to have? are they strong a factor as they were? >> well, opec is not a factor as they were years ago. you can see it in the oil price today. you have members of opec who are producing as much as they possibly can. even iran has come out and said we want to produce as much oil as we can at the same cost and ask for the opec emergency meeting. so all left to the saudis to decide and clearly the saudis are now in a quandary seeing more iran oil come on the market and they really tonight want to give market share to iran. so bad news for the saudi budget because oil prices are going to remain under pressure through the balance of this year and well into 2016 >> all right, gentlemen, thank you both very, very much. and, guys, if we could show that oil board again because i think it's very revealing.

oil prices dropping again here and there has been a lag or delay in gasoline and seeing the effect of gasoline prices. but i might point out now that six states, southern states, are averaging a gallon of unleaded under $2. we have not seen that in the better part of a decade. so the fact is going into this labor day weekend, remember we always try to look at the bright side of bad news for you. you are looking at the cheapest gasoline prices in 11 years. in 11 labor day weeks. so that isn't too bad. but then of course when you drive back home, you won't have a job. but i just want to look at the bright side for the time being. also want to look at the bright side or surprising side, behind donald trump's numbers. you might not flip over the guy you might not not like the guy, but his press conference yesterday where he fielded more questions in a half hour than barack obama did in more than one hour is an education

why he's surging. he doesn't miss words. actually he doesn't miss anything. after this ♪

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in which he announced he's signing that republican pledge to stay a republican not go to a third party was very similar to the number of questions and the quick responses we would see out of a kennedy press conference. kennedy had about 63 during his brief presidency and in an average press conference, he would take in about 35 to 40 questions, maybe more. in an average obama press conference lasting more than an hour maybe 10, maybe less. in donald trump's press conference yesterday, close to 30 in 26 minutes. so i want you to make this comparison here. quick. quick. bullet. bullet. fast. fast. take a look. >> i don't happen the to talk about that here. it's inappropriate. >> i have no statement on it at this point in time. >> you'll see it later. yeah. you don't want to hear it. go ahead. >> no. this is completely the defense department. >> no. i've seen no circumstances under which i would tear up that pledge. . cavuto: now, a lot of you back home are saying you guys

edited that. yes, we did but we couldn't go on and on and the comparisons are not winding and i want to keep them equal. but the bottom line is those numbers are what i told you, rapid fire delivery, a president 50 plus years ago recognizing the people of relatively short attention spans as did he, and he didn't feel like answer a question he didn't, and he would say i don't know. now, their styles are different in many other respects, their substance different in many respects but that press conference did prove another example why donald trump is resonating with folks who in this very media competitive age don't have time for nonsense. and on the benefits of that style both then and now. what do you think, alexis? >> i mean from a reporter's perspective be he's a dream. donald trump sits there with his takes ton of questions, he has a hard time leaving the mic. >> yeah. last two questions. 12 questions later.

>> last question. and then, you know, we -- i was watching it on tv and the station kept cutting in because they would he was done and he would say, no, i'm not done. cavuto: why is that important? sometimes some of his answers, his prickly style but i've always argued there's no unspoken thought, he's direct clear, he will be rude to somebody or say i don't know or i'll answer that or talk to you later about that. but it moved. at least all the reporters in the room had a chance to answer the question as they did during the days of jfk, not so with barack obama. what do we make and was that how that changes the tone and even popularity of how intriguing a press conference? >> well, there's an authenticity to it. when he doesn't want to answer a question, he just says i'm not going to answer that. whereas a lot of other candidates they dance around

it for two minutes because they don't want to answer it but they're going to whined you on for a while about something they do want to talk about. he just says, no, i'm done, i don't want to talk about it and when you ask a direct question, he gives you a direct answer. and that's compelling for voters. there's a genuineness that's missing from a lot of the political office. cavuto: in my olden days i used to do a lot of company annual meetings and some of the best ones i can remember are the likes of jack welch, ge, kristler, and rapid fire delivery. they were respond to them or quick response and they made it an culminated inviting rather than long affairs. i'm beginning to wonder whether that's what america is thirsty for. why does everything have to be so weighty and long and maybe it is the institution or however you want to describe it. but people don't have time for this; right? the anonymous

and the lengthy answers; right? >> well, there's a reason we talk about, you know, we say political reporters, no one's really paying attention right now except for us. but donald trump is making people pay attention and i agree. that's part of it. he's the candidate made for the attention deficit age where we get all of our news on twitter in 140 characters and we don't want to sit there and listen to these long-winded answers and he doesn't do it. he tweets, he spits out a sentence and we're done. . cavuto: what i would like is if he did become president, he would say shut up. you shut up. get out of here. alexis, national review senior political reporter. thank you. cavuto: and the 37th democrat now in favor of this deal, this iran deal, it's going to go through despite the fact that a majority of the house and senate don't want it to go through. alan on why he thinks that is beyond awful and they will rue

the day they caved. after this hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. ♪ hi, tom. how's the college visit? does it make the short list? yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing our clients personally is why edward jones is the big company that doesn't act that way.

cavuto: all right. a lot of people with china closed today we would take advantage of that scruple keep running up so long as, it didn't happen, it's not happened today. maybe becoming weary of china as the latest employment reports slowing down. that's the excuse for ail running down on this global weakness that is feared. one other factor that is coming in the markets having to do with this iran deal is that if it goes through, and it probably will go through now, 2 million more barrels of iranian oil hits the market per day in a world that's slushy in oil already. so that means more supply, limited demand, you know how that works out.

and the white house right now meeting with the president, meeting for lunch, we don't know what they're having for lunch, but it could be a rather contention prevention because fearful that it could put other middle eastern neighbors in some disarray out there. that's something that alan has been focusing on, but, alan, as we were chatting during the break. 37 "yes" votes in the senate for this deal. there by assuring that the president will avoid anyone overriding. societies a done deal. >> yeah. i expected it. and when i wrote my book on the iran deal, i anticipated it would go through because the president could out with senator that all he needed was one third plus one democrats. cavuto: . cavuto: that was amazing how he got that and mitch mcconnell let it happen. >> and here we have a situation at least to some polls a lot of the americans are against the deal, a market majority of the senate, a majority of the house, and it goes through. a lot of the senators voting

they're voting for the deal because they've been persuaded by the president, that rejecting it would be worse than accepting it. neil: by the kerry arguments, john kerry that the alternatives work? >> i don't think so. i think that this makes war in my view somewhat more likely because the sanctions are really dead, they're off the table, particularly with khomeini saying if you suspend the sanctions, we're out of deal. the sanctions are over. i think the president is take the military option realistically off the table. certainly the iranians believe that. neil: john kasich said he supports this. that was newsstand, he was telling me the military option was there and he supported this because if the iranians violate, this we have the option. i don't see that, realistically happening. >> the president announced after the midterm elections he thought no military option could do. this he's strong about that. i mean, militarily it is feasible, you might need more than one strike, everybody

hopes you don't need the military option. the president should have said to the iranians in thing of the negotiation, you're never, ever going to get nuclear weapons. that's the constant. why are you suffering from sanctions? give up the nuclear program. the deal starts that iran reaffirms it will never under any circumstances seek to develop or obtain nuclear weapons. nobody's heard about that, i think there's a secret private deal that that's horditery, not an enforceable part of the deal. >> i asked senators this, some asked yes, another voted yes, u.s. democratic senator dan hill says he will support it, that's 38 now. they say we will be able to enforce, this but i don't see anything. >> look, the president said after the deal was struck, he told tom friedman, i should be judged by one thing if this stops iran from getting a bomb

for ten years, i will be a success. is it a 10-year deal? 15 year deal? why does iran need 24 days to avoid inspections. i'm a criminal defense lawyer, when police come to the home, i say search now, i don't want you to delay a minute. i don't want you to suspect any move. neil: why do we approve the 24 days? >> i don't get it. the president promised 24-7, we understood that as 24 hours not 24 days. neil: the deal goes through? >> i hope it goes through with a congressional resolution authorizing the president to enforce not only the text of the deal but the prelim to the deal as well. tom friedman supports that, many of the people who support that. neil: tom friedman of the "new york times"? >> of the "new york times." many of the senators would like to see congressional action that puts more teeth into it. you can't change the words of the deal but make the first part of it enforceable, give the president now the authority

to enforce it by whatever military means are necessary. i think the iranians think we no longer have red lines after syria and after we gave them so much of what they wanted in what i think was a very questionable negotiation. we have to get tougher now, and have to reach out to them. maybe we can make peace. that's why the cover of my book has two dice, one that comes up with the peace symbol, one with the nucleus symbol. this is a toss of the dice. it could come up right or wrong. we could do something more to make it more likely to come up the right way. neil: it's unlikely now, alan. >> it's an analogy of russian roulette. one in six chance you blow your head off. none of us would play that game. there's at least a one in six chance iran develops nuclear weapons and war is inevitable. neil: yikes, alan, good seeing you again, regardless. i want to thank you you. alan dershowitz. we were skating over 300 points.

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. neil: all right, we still have the big sell-off going on. and all dow 30 issues are feeling the pinch here, as the dow careens about 280 points here. surprisingly weak job report, a catalyst for that, not exclusively for that, in fears if it goes either way, this will compel the federal reserve to hold off or go ahead and

hike interest rates anyway. go figure. now to politics and joe biden and whether he runs. forget whether he is the latest to enter the race. have you heard the one about the harvard law professor, larry leszek, he is a democrat and thinking of running for president but for entirely different reasons. in his catalyst, his reminder is donald trump. very good to have you. >> great to be here. neil: let's talk about your uphill fight. donald trump connection. >> right. so what's striking about donald trump is he stands on the democratic and the republican debate stage, pulse back the curtain and says look, all of you guys are bought. i buy you, right? and he says something americans really feel. that politicians are too dependent on their funders, they can't make a judgment on the basis what the right answer, is they have to make the judgment on the basis of what the funders want. that kind of politics means we can't get anything done in america because there will

always be a funder strong enough to block change whether it's on the right or the left. this is not a partisan point. what donald trump said about this issue, let's not talk about the immigration and all the other issues. this issue is exactly right. neil: what would you do on the left? >> so what i think we have to have on both sides, but i'm a democrat, so i have to do it on the left, is a time-out, and say we got to fix this corrupted system first, and once we fix the system, we'll get on the field and have a fight about democrats versus republicans. we have to get above the positive fray on this. i would fix it by doing something like republican jim rueber in new hampshire is talking about, give everyone rebate in the first 50 taxes that they get, in a starbucks or target card, and use that to fund their campaigns. neil: don't we already have campaign funds that way? >> no, no, only at the presidential level and not enough.

congress doesn't have anything like this. if we had something like this, instead of them spending 30-70% of their time raising money from literally 50,000 americans, they would be raising money from all americans so their focus will be on what the voters care about and not what the funders care about. neil: would this stop pacs and all the others? >> that alone can't touch. that the supreme court's decision stand until amended or new supreme court. neil: it's a lion's share of the dough. >> they do. the point is even before the pacs, this money is coming in the ordinary campaigns in the congressional level especially from such a tiny number, that they are not free to lead as buddy roemer used to say when he was the 2012 candidate in the republican party. we need a congress free to lead not forced to follow funders. right now they are too tied to the fund-raising game and have to give them the freedom to represent their district. neil: if you run, how would you

fund yourself? >> we're crowdfunding right now. if we get to a million dollars by the end of the day on monday, labor day, then i will run. neil: where do you stand now is. >> 850. neil: you could do this. >> if we don't do it, we will send the money back, if we do it, we'll get into the race. neil: bernie sanders speaks of the lot of stuff you do. >> my personal view is i like bernie sanders. here's the point, bernie sanders would come in as a partisan democrat, in a partisan field, and i think we need to find a way to get above that. so what i want to do is set up a movement that, in fact, republicans should agree with this too so that we could fix this corrupted democracy, and what i've said it, as soon as the bill they put forward to fix this has passed, i would step down. and then the vice president would come in and be president for the rest of the term. neil: you wouldn't do that. >> i would do that. neil: you got everything, you're going to give him?

>> the only measure of my success is if i live up to my word. my word is pass this bill, and i would step down. neil: interesting stuff. larry lessig, thank you. let us know tuesday morning how you did. >> tuesday morning. >> thank you very much. take a look at what's going on in wall street. a sell-off at the end of the week, there's a reason why they call september the most problematic month in the markets. the fact is september is the one to remember, and today people are remembering. more after this. can a business have a mind?

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. neil: all right, there have been a number of protests over this past week as well about the growing income disparity between the rich and the poor. a popular solution over the course of the summer have been to forcibly raise the minimum wage to as high as $15 and maybe more an hour. there are some other groups that argue that you can't force that.

that you have to inspire that, a great economic environment triggers that, and therein we lie. and for the lowest paid workers it gets worse. sabrina schaeffer and joe now on low income workers seeing at least in the latest wage report, the biggest drop, the biggest drop of wages in all. so it continues. i'm wondering, sabrina if you can force the issue by forcibly raising the minimum wage to arrest that fall. you say what? >> no, no, the last thing you want to do is micromanage wages and government further to interfere into the workplace, we want to eliminate barriers of entry into the labor force. what concerns me, neil, is there is a suite of workplace regulations that democrats and progressives are pushing from equal pay laws to raising the minimum wage to mandating pay leave, there is so much that could make the problem worse, that i'm really quite alarmed. neil: you know, joe, you're

looking at this and wondering can forcibly raising that minimum wage do it? because the people are just above will demand a higher wage for themselves and on and on and on. what happens? >> the key here is stop the forcing if we tie this to inflation, that's where our problems are coming in. we don't raise the minimum wage with inflation, so it remains stagnant. forcing the low workers and purchasing power to plummet. even though productivity is increasing the invisible hand of the market is forcing wages to stay low. there has to be a floor to protect the workers, they contribute to the economy when they purchase. we need the purchasing power to match the productivity. neil: the offset of that is you all of a sudden, you're forcing employers to do the things some of them in the fast food industry, wendy's comes to mind, are doing now, automating their stores, right? >> absolutely. who hasn't walked into a convenience store and not seen

a person. you make a good point often left out of the conversation, not simply the cost of raising the minimum wage for the lowest level workers, it's the fact there is upward pressure that wages across the board for an employer, that's where it's unsustainable, that's often not part of the conversation, if we want to help low income workers, make sure jobs are plentiful and workers and employers are free to hire more people and give them more hours. neil: joe, do you find it odd, you have a sympathetic president to their cause to see the minimum wage hiked, maybe not to the degree some have abdicated and things have gotten worse, the division has gotten wider. i'm wondering whether it's because we have too many burdens and rules and regulations and taxes on businesses, where it would, it would be conducive to sell to higher more people? >> since the recovery started

in 2009 through 2014, only certain areas implemented increase in the minimum wage. those areas are more or less immune to the dropsoff and purchasing power. so what we are looking at here is a market force that is forcing labors to stay stagnant and government is not interfering in that. the government is coming into protect workers and say you've got to pay your employees a little more. neil: we have so many other requirements on businesses that we almost demand that they shift the number of part-time versus full-time workers. >> yes, yes, certainly. >> the wages would have gone up already, but in the free market, they're not going up. we have to pay your employees a livable wage, index it to inflation. >> we're not looking at the full picture here. of course every single one of susconcerned about the person trying to make ends meet and don't want to be unsympathetic to the challenges out there.

automation is one problem but want to allow people to get into the labor force. people who are living in poverty are not in poverty because they are at minimum wage jobs, they're living in poverty because they don't have consistent year around full-time employment, and laws say raising the minimum wage will prevent that. >> even without the minimum wage, they would still be in poverty. neil: guys, i want to thank you, both. another bulletin here they think takes the other bulletins. they did a survey of millennials that millennials have admitted something that charlie gasparino has been saying for years. we millennials are self-absorbed. really? and that's a fox alert? after this. you're late for work.

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. neil: all right, a sell-off and it's all the millennials fault. there's a survey out, millennials have admitted they are self-absorbed. they freely allow themselves to say they are the most self-absorbed generation. charlie gasparino will say i told you so, stephen leeb is not at all surprised, and gerri willis who's going to try to give the millennials a break, but who knows? who knows? what do you make of this? they're admitting they're self-absorbed. >> i know that for a fact. neil: really? >> i have so many kids. >> how many? 11? >> 9 boys, 2 girls and 7 grandsons. neil: you have millennials in there. >> of course. neil: it would all be your fault? >> it's all about me. it's the me generation. >> yes, they're obviously self-absorbed and every

statistic backs it up. 26% of millennials are married. comparable age groups like 36% of gen-x's, 60% of baby boomers were married at the same age, and the quiet generation that served and fought in the second world war, 75% of them were worried. >> being married is not a badge of honor. >> why isn't it a badge of honor? >> i have to put up with my wife! >> what do you make of it. >> neil! >> millennials are committed to nothing. >> i see it all the time. >> they have causes to fight for. neil: what do you think, gerri? >> i think they're all crazy and the women boomers are the ones who support everything and make everything happy, and as we've seen in the employment numbers, the boomer men sitting on their duff. neil: whoa, whoa, whoa!

[ laughter ]. >> you can give me the page number that says i'm sitting on my ass all day? >> no, no, no! i think steve makes a good point. there's a lack of commitment in the generation, right? >> and they don't care about working. they're not interested in doing anything. >> you think the young people you run into don't care about working? >> they care about working but they don't want to. you know where they go? i've been doing research on this. burning man. have you heard about this? they go this thing in the desert, i've been doing research on it, i was thinking about going to see what it was like. they dress weird, sometimes they don't wear clothes and take a lot of drugs. neil: come on. that's a weekend at your house. [ laughter ] >> don't tell anybody. >> now i know why your wife is mad. >> they don't shower at this burning man. neil: that's not being fair.

>> if they don't shower, who wants them around anyway? go off to the desert. [ laughter ] >> look, we had causes in our generation. we really did. we believed in equality, we believed in america. we were fighting for america. neil: we were buying bmw's. >> no! that's not true. that may have come later after working hard. we believed in working hard. neil: maybe they'll learn this when they get a little older. >> the danger right now is if we're faced with the threat. neil: what do you mean? >> i worked when i was 12. >> yeah, i worked too! i always had a job. >> they don't like working and don't do the type of jobs. when i was 15, i was a dishwasher. >> i actually have a real fact, which is the users of netflix spend 90 minutes a day on netflix. i submit to you these are all these folks, the millennials, all millennials.

they spend more time on netflix than they do on personal care and even eating. >> let me tell you what is so ironic. >> unbelievable. off the charts. >> we've run out of time, and millennials have changed stations. look at time. we'll have more. [ laughter ]

. neil: welcome back, everybody. i'm neil cavuto. and you are watching "coast-to-coast" on fox business. we have a selling business going on, on wall street. the dow down close to 300 points. lori rothman, what the heck is going on? >> i know, we lost our bottom. the dow is off about 300 points today. obviously the jobs report setting the tone. let's look at some of these sectors because while they're all down for the year, there are particular stocks that are way outperforming to the downside, what the overall tech sector is doing. tech is down 5% on the year.

apple down 18.5%, microsoft down 13.5%. off the 2015 highs. facebook off just over 12%. moving along to financials, so for the year, financials only down 8.5%, but you've got bank of america down 15%, goldman off in excess of 17%. jpmorgan a similar story here. let's look at energy, the energy story oil is down over a percent again today. for the entire year, the industry is off 20%, and these stocks are doing even worse than the industry peers. bp down 30%. and retail not as bad of a picture but nothing to write home about. as an industry down 3.8%. target outperforming 11%. 14% on amazon, home depot off 7%. the market is selling off. important to note, low yield, only 331 million shares trading hands. usually this time, around 500 million. that's the story today.

neil: lori, thank you very much. bob says low volume or strong volume, the sell-off will keep going and going and going, why bob? >> two reasons. the worldwide growth story is fading. we have korean exports down 7%. brazil in big recession. canada in recession as well. so the growth stories are fading, that was important to keeping the stock market up. obviously, lack of money printing is the other driver not helping to push it back up in the face of bad news. >> you know, i knew you were coming on, i want to pick your brain, will they or won't they? regarding the federal reserve, i've heard of the federal reserve delaying interest rates, that will tank the markets. if they raise interest rates, that will still tank the markets. they can't win for love of money here, what do you think happens? >> i think you're right. i am not sure what's going to happen. i think janet yellen wants to keep increasing rates to say everything is fine and we're back to normal policy.

but honestly, there is enough instability they may postpone it, and you're right. either way, i don't know if this market is going to like it, i suspect it won't. neil: obviously, the chinese market is closed today as they were yesterday, honoring the 70th anniversary of the end of world war ii. and a lot of people said we would do well, i've heard arguments maybe we're the next china, maybe everyone hedging and placing their bets on us have done so prematurely, what do you think? >> i don't think we're the next china exactly because i think the fed will step in and help us. i think that's a really good point is people thought china is the whole problem and the market is going down, and i've said before china is important, but it's not everything causing the downturn. there is more to it than just china. i'm not surprised to see the markets down, even with china closed. neil: if you think of apple and google and facebook, i think they're all taking it on the

chin not only today but largely since the correction began, and i'm wondering if they continue to take it on the chin, who replaces them if there is a comeback? >> well, it's not energy as we just learned, and oil has been a real good growth sector for the economy and the market as well. i mean when the techs get hit and the highfliers get hit, there's always the odd ball, whenever uber goes public. not in this market. i don't think anybody is going to lead it, certainly the techs aren't. neil: this is my crazy argument, you're the expert, bob. i read a prompter pretty well, if i must say so myself. i know we have a correction, stocks are 12% off their highs and another 8% to get us into the bear market. wash out, get the nonsense out and move on. what i discovered about bear markets is you don't briefly visit them and head out, right? >> yeah, a lot of people look at that and say i made a lot of

money in the market and i'm doing fine, i don't want to risk it. i don't know what's going on. it's not always the news pushing the market down and enough people will not so much sell but stop buying or some will get out of the way, a market goes down when the buyers evaporate, even if there is no seller. that's the thing i worry about if it goes down 20%. are the buyers going to come in? i'm not so sure. neil: that's a very good point. bob, thank you very much, have a safe labor day weekend. good seeing. >> you you, too. >> then there is oil, right. the idea that oil might save the day and reverse a steady decline, the decline continues. if my next guest is right, we could be looking at higher oil prices. maybe that's what's going on behind the scenes at the white house as the saudi king, king salman meets with the president, maybe they're having lunch. maybe they're talking about the issue. john, you're looking at higher

oil prices down the road? >> during the spring. i was forecasting $80 a barrel by the end of the year predicated upon the growth suggestions that were present at that time. so the amount of china growth, the amount of global growth, the amount of u.s. growth i don't think we're going to see 80 by the end of this year. neil: but you argue it could go up. people are getting spoiled with the low gas prices, the labor day weekend, the lowest in 11 years for gas prices but that might be short lived? >> yes, i do think it will. i think three things are coming together at the same time, all towards the end of the year, one, the u.s. will be down about a half a million barrels a day of production probably early next year. i think the opec countries are going to really work hard over the next several months to try to make the case among themselves that it's time for a rollback because it's doing too much harm. third, i think the saudis will

have taught the russians and the iranians the lesson they were trying to teach them, which the white house was not, and showing them that they are not invulnerable, and that would allow the saudis to relax some of their outside production right now, which would again take us back to equilibrium with the oil price, supply and demand. neil: all right, john, we'll watch closely. in the meantime, yikes, across the board. for a lot of technology investors in the september market, september 9th is a big, big day. apple is having a big product announcement. and every time apple has a big new product announcement, the world is on tenterhook thinking it's a big thing for everybody. a technology big thing, apple big thing, nasdaq big thing, all is right with the world big thing. what if it's not? after this.

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. neil: all right, we are at session lose on the day. the dow barely hovering. down over 300 points. over the jobs report that showed steady as she goes growth, unemployment rate of 5.1%, but the growing concerns about the quality of jobs and how many are generated, not enough to compel those on wall street tong this recovery is sustaining itself here. reason enough for people to get out of stocks. look where they're going, into the safety of bonds.

i point this out as the half full glass on today's otherwise disaster story, because kwh you're doubtful where things are going, you park your money in the safety of a treasury-related investment. a 10-year note gets the pick around here because a lot of mortgages are attached to this puppy and this puppy is going up in price and down in yield, and that yield means you'll see mortgages in the three something neck of the woods, 3.9, 3.85, 30 year average take on that. roughly. if you're looking to refinance, your ship has come in yet again. we saw cases of that last week when mortgage apps for refinancing soared better than 11%, largely on the belief people were taking advantage of the short-term interest rates phenomenon that wasn't apparently so short-term. something else going on today, the chinese markets are closed as they were yesterday. it is the 70th anniversary of

the end of world war ii. the chinese are celebrating it bigtime by showcasing all of the latest military stuff and reminding the world despite the fact they're showing off the impressive arsenal, they don't intend to use it. they've committed to cut 3g00,000 troops but china already has 2 million soldiers, active standing soldiers. not always standing, some of them sit down every now and then. [ laughter ] >> the point of the matter is that is a big force of troops. mike baker says that alone is reason enough to take with a grain of salt any of the commitments to peace. mike, what do you make of this showcasing? >> first of all, congratulations on break the news that some of their troops sit down. neil: yes, anything i can do. >> that's confounded the intel community for years. this is an interesting thing, but what we have to look at is the top line and get into the weeds a little bit.

particularly the naval buildup, and there's been recent things that you mentioned, 12,000 troops, all the latest sophisticated military hardware. 30 some odd world leaders attended this big parade in beijing to celebrate the end of world war ii. at the same time, up in alaska, five chinese naval ships sailed remaining in international waters but sailed about 12 nautical miles off the coast of alaska as they made their way through the aleutian islands, that was after joining russia for a large military exercise at the end of august. what all this means is, look, the chinese have for generations, decades now have resented what they view as u.s. encroachment in the territorial waters in the pacific. a lot of what we see now is a change in conventional wisdom. conventional wisdom has been

the chinese military has been about a defensive posture, and has been about a potential conflict with taiwan. that's changing in the buildup of the naval capabilities, the blue water navy that china is building in a very aggressive and respected manner is a power projection around the globe. that is a complete turnaround from what we thought of when we think about chinese military power. neil: they feel emboldened to do. this russia did this off the coast of georgia, not our georgia, the country of georgia. i wonder with the chinese thing, if you think about it, the president was there looking at melting glaciers, right? >> president obama was staring down a glacier, commanding it to stop its retreat. and meanwhile, five chinese naval ships are sailing off the coast of alaska. the chinese authorities don't do anything randomly. there is a message to be

delivered. and we have a cottage industry in the u.s. of government experts and pundits trying to pars what all that means. essentially, we have to focus on the reality is that the chinese have been expanding their activities everywhere from the philippine sea to the mediterranean, the south china sea, buildup from carriers to diesel and nuclear submarines, anti-ship ballistic missile systems over the past several years has been fairley remarkable, and again, it's all about delivering this projection of power, and that's where they are heading. that's what they want to imply. they're going back to this idea that, look, the pacific no longer belongs to the u.s. and part of that is our retreat off the world stage. nothing ever happens in a bubble, not as if china is randomly saying we're going to project our power out through the pacific and elsewhere. part of it is what they perceive as a retreat by the

u.s. as the leading power in the world. we want to get off the world stage. somebody is going to fill the vacuum. >> and already have. mr. baker, good seeing you my friend. back to the dow, back to the sell-off, what's going on here, in and out of session lows. all dow 30 stocks are down. interest rates are sliding down as people want to find a safe haven for cash. that safe haven is the bond market. if you're in the market for a home or trying to refinance the mortgage you have, at least you've got. that more after this.

. neil: all right, we still got the market sell-off going on. and apple shareholders certainly know it. the stock down another 1.5%, around 108. just in case you're keeping electronic from its highs north of $130. this stock has fallen 18% of their market is 20% or more. the dow itself is down 13% from its highs, well into correction

territory. but again, a lot of folks focusing on apple and what it can do to reverse. that it has been a leader on the upside when the market was nothing but wind at its back and now the opposite, folks following south. september nining is the a crucial date for apple, not only for investors but customers and much of the technology world, and hanging its hats on whatever comes out of the company for that big announcement. it's going to have a new phone, a success. they call the interim phones before you get to the next model an s, i don't know why. maybe this guy does, john sculley, the former apple ceo. john, we know a lot hinges on the remarks. you know what the apple announcements are like. you make more than a few yourself. there's great expectations for them, but this one and this meeting seem particularly crucial. what do you make of what's at stake on the 9th? >> i think what's interesting, neil, is that used to be that very little ever got leaked

about apple's announcements, and now i think we have a good idea in some detail of products that apple is introducing. i look at it more of how do you put into context what the implications are for apple. i think the iphone is very much keeping up its momentum, it's strong. people have wondered about china where the growth year-over-year in china is down to 1.2% for the smartphone industry, and yet tim cook came out and said apple is doing just fine, which means the buying behavior changed in china but has not hurt apple. apple continues to be the product people at the high end aspire to. they're just taking longer to make their decisions or save up for it because it's very expensive. neil: and i've gotten into this before, john, apple is the victim of its own success. any other company that sells a couple of million of anything would be heralded as moses with

a spreadsheet. the fact of the matter is that's not enough with apple if it sells a gazillion iphones or announces that it sold a similar number of ipads, that would be off the charts. but it's not. expectations are always high, not only for revamped or newer faster iphone, is whatever they call it, but some other surprises. what can you envision and does it need that to keep going? >> well, here's the one i pay most attention to because we've seen apple literally change entire industries as the music industry, and i think apple is poised to potentially change the entire cable television industry. what it means is that the apple tv is going to be introduced on presumably september 9th with new user interface, probably voice response, probably able do a lot more things including being the hub for the smart home.

neil: we should stress it won't be a physical tv just yet, that might be in the future, but the apple tv box that goes to the tv that will presumably be able to do a lot more, right? >> exactly right. it's very unlikely apple will go into the tv businessment the reality is that's a very low margin business and apple doesn't need to do that. apple can let people see the tv on the tv set, they can let them see tv on an ipad. it can be the new 1 2" ipad they are expecting to announce. the key thing is that the cable television box is totally antiquated. it's a technology that slipped over from a couple of decades ago, apple to reexperience how you navigate over-the-top network. as you know the new content, billions of dollars is invested by companies like netflix and amazon and apple is expected to

get into the business. neil: netflix is taking it on the chin six days in a row, steep selling. under $100 a share today. concern this field is getting very, very crowded. hulu and so many others that maybe apple is arriving late? what do you think? >> i think the thing that's held them up is not technology at all. what's held them up is trying to get through the negotiations with the live broadcasters which is very complicated because they have to go through the networks and go with the affiliates and it's very complicated process. neil: you know what i wonder, john, a lot of the things that you mentioned sound more evolutionary than revolutionary and i disclose i have been an apple shareholder for many, many years, i don't see much revolutionary. should that concern me? >> i think that there's enough momentum with the iphone. apple gets i believe 94% of all the profits for smartphones.

that's a pretty good number and no indication it's slowing down at high end. as i think you know, neil, we talked about it before, i started another company in silicon valley to go in at the budget end of the industry because there is no strong competitor there. but apple dominates the top of the iphone industry and will continue to do so. i think the apple tv could be a major product for them, but there are some things that take a long time to implement like apple pay, not something you can introduce and expect to have it in just a year. probably two, three, four year time frame to build out apple pay. these are long-term momentum plays for apple. there isn't a single product that's going to have the impact of an iphone any time soon. neil: john sculley, thank you my friend. >> thank you. neil: all right. you know you've heard a lot about ten-year anniversaries and the ten-year anniversary of katrina. and you always think about the leadership, what got us through

that, and when everyone finally centered on one individual to speak for the help that was desperately needed. he did the job then. general honore on what we need to do now, not in the region or over a hurricane. but over a country.

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neil: all right, ever since his big press conference yesterday, his overnight tracking numbers continue to go up. what is it with donald trump? how is the decision to sign a pies of paper to pledge to stay republican endeared him to more republicans? chris bedford takes it as sign he is very serious about this white house run. this is not some sort of fancy. other businessmen and women are taking note. chris, obviously we have. we talked about steve wynn and carl icahn and many others. what is boeing on? >> people are starting to take note of donald trump. starting to at least maintain the image that he is more serious by signing pledges which he could easily discard. trump is the kind of person, comes no surprise to anyone. is not impressed with resume's or his own opinion.

he has long history of promoting friends and family, or bodyguard, waitress that he met he took a shine to. he trusts his own tuition. wouldn't be surprised if he brings friends including from the billionaire club to the white house if he were to get that far. neil: i talk to a lot of people not necessarily big fans of is. he knows a lot of rich, successful people. maybe that is what we need, a lot of rich, successful people populating cabinet. what do you make of that? >> amazing to see, when you get famous and rich enough they all seem to know each other. neil: exactly right. >> i one time asked tucker, do you know every famous person? he said, yes i do. the problem is trump he is not necessarily free market guy. successful businessman. imminent domain laws or openly bragging politicians getting money to get his way he will be definitely team trump. mark cuban is likes him, free market guy. libertarian leaning guy.

if think come into the white house. they are plus to minutes sick of nothing getting done for politicians and obviously a long shot for him. neil: advising him to talk to him, think smart money crowd is thinking he is good, smart money. >> he is fun. making politics fun. more people are tuning in to watch fox debate than ever a presidential debate. making it almost like a television show. it is reality which is scaring a lot of people. they have got billions of dollars. very successful. why not politics, why not join donald trump circus? if i was invited i would join in a second. neil: they all do know each other. that is weird. bought a yacht from him. all that. chris, thank you, thank you very much, chris bedford. look at corner of wall and broad. in and out of the session lows. the dow hit hard today. only solace for some techs that follow the market, to me reading

chicken entrails and tea leafs, thank you it is on low volume. not many participating because of holiday. still sell something selling. we'll have more after this.

>> this is called a market selloff. hello, everybody, i'm dagen mcdowell with your market brief. 300 plus loss on the dow. hardest hit the three major market gauges down almost 2%.

hire are some big losers in the blue-chips, goldman, microsoft, merck, dupont and jpmorgan. losses across the board. look at goldman almost 3% loss there. the bond market, its usual haven on days like today, the 10-year is down four basis points. 2.12. the price of oil briefly turned positive earlier. look at some but now down half of 1%. energy stocks are also feeling the heat today down across the board. bp off more than 5%. good news for 30 million drivers this weekend. prices at pump, 2.42 a gallon, down more than a buck from year ago. lowest prices in 11 years. we'll be right back.

neil: you know recently someone asked me about the donald trump phenomena what is going on here? the best i could offer judging by polls, maybe the nation is hungers for no-nonsense guy. speaks his mind, doesn't suffer fools gladly and calls the shots. this was that guy. category 5 general, mr. stuck on stupid because he couldn't take and tolerate stupid questions. back in his day, lieutenant general russell oner ray, right after the whole katrina fiasco, got unyielding, stupid incompetent politicians to just move aside and let him get the job done.

he did. that was then. gin henri with us -- general horere. >> good to be back with you. preparedness month, week after katrina week. thank you, neil. neil: remind people you remind people, you have to be prepared. so few were. you devoted pretty much your life since to make sure we are. before we get into details of that, you inherited a mess when you were sort of pushed into this fiasco. i think what helped folks is that you took the bull by the horns, you were the commanding guy. you were the go-to guy. right now when you look at a market selloff, general, anger at china, concern about the state of the world, america dominance, there doesn't seem to be any got-guy. is that the problem? >> well, i think it is part of the problem. i think we're we're so busy

trying to make sure we look good in the lot of aspects sometimes we fail to make sure that we, number one priority of the military to make sure our nation is secure. that is the space i came from. that is the number one job of the united states military is to defend the united states of america against all enemies foreign and domestic. as wells that to those interests laid out by the president and congress what they want us to do. but, i do think we need to continually remind ourself what our mission is in the military. then the american people need to stay focused on what is most important to them. neil: you know, general, i remember at the time when you would hold brief q&a with reporters, one of the things that would come up whose fault is this? they were going after ray nagin. going after governor of louisiana. going after the president. you would invariably say a variety of ways, i don't care whose fault it is. this is what i'm dealing with now. now you know we're looking at concerns about a shrinking military, shrinking prominence

of america as a country and a power, one of the things i think feeds donald trump's campaign. what do you think of him and his message? >> well i think his message obviously is being heard. you can't help but face reality of that people are discouraged because the mission of the congress in the constitution is to raise our army and to resource our army. and that is their mission. if they're not going to do it, we to form another form of government. if congress al not doing their job, they go into sequestration, slowly choking the most powerful army ever built in the world to a level of near mediocrity. right now we got something we need to whole on to. it is congress. i don't care who is president. it is judge and mission of congress, written in the constitution. they're not doing their job. it is congress of united states. neil: so you think the number one fault is how they are hurting military?

how are they doing that? the military gets as you know, general, a 600 billion bucks a year. that is a lot of money. >> that is a lot of money. there are a lot of things we need to do here in the united states with that money. return on that, what weigh can do to prevent another 9/11 and protect friends and allies around the world so these big business guys, ceo's can run around the world to put plants in other countries i think there is short term on our investment. as we make peace around the world, they are exporting businesses to other places around the world and reducing amount of jobs in america. at end of the day american people pay for this army. neil: donald trump exactly said that companies that outsource jobs. he wouldn't give them tax breaks. they would pay dearly. what do you think of that? >> that and bankers on wall street make money on sweat and tears of security provided by a lot of soldiers, sailors, airmen and marines, work at

minimum wage, away from families year-round. come home for a few months and go back on deployment. we're shrinking that force. that force that keep airports safe. that keep our sea lanes safe. that keep our ports safe. if god forbid somebody attack us, do what they need to do in the middle of the night to show the will and power of united states of america. we do all that. we have continued to do it for 239 years. but now, the business people don't want to pay the tax and they putting businesses offshore. that has got to be fixed. they have gotten a bargain for 239 years. american people need to hold congress accountable for make sure that great work of generations of soldiers, sailors, air american and marines are not for naught. neil: then, general, what is going on with china? five naval vessels just off the coast of alaska? russia, submarine just off the coast of the state of georgia? are they enjoying this vacuum? are they taking advantage of this vacuum, what?

>> i think you know for years china is world's largest country with 1.3 billion people. and that multimillion man army they have is primarily designed to control the chinese people. they now want to become not only a global economic power but a global military power. it has had the capacity for a decade going back to the cold war but, now they want to be expeditionary. you see china going out and building islands. they are making land. at the same time, here in louisiana, we're losing land from erosion and congress is not doing anything about it. so our near-term competitor, china, is going out, making land so they can be strategically deployable. on coast of louisiana we're letting our coasts be deteriorated and we can do something about it. that's a shame. all that goes back to our congress. they have lost their focus and they have almost lost their purpose. because nobody in america is

listening to them. neil: when you say they have lost their purpose, president on -- they obviously make money and propose budgets and been behind these sequestration cuts and what have you but both sides, democrats and republicans, tangle at this, right? >> both of them are equally responsible for this. we just didn't get into this by mistake. these, all bought into it because they all got this legacy thing. they want to balance the budget. neil: right. >> they want to make sure all industry get all the tax breaks. we got industry people being invited to washington to come testify and their companies, they don't pay tax. we got industry people making multimillion-dollar bonuses, and they enonly pay tax on a part of it. while at the same time, we got soldiers, sailors, airmen, marines, trying to use used parts to keep airplanes and tanks running this is ridiculous. congress needs to step up and need to fully fund the military.

we need to make sure that businesses go offshore are paying their fair share of tax here because security in the united states that give them the ability to go around the world because nobody going to mess with them because they have a u.s. tag on them. neil: you ever thought of running for president? >> that has come up a couple times. i take a good nap and forget about it and go play with my horse a little while. neil: general, thank you. honor to have you. always enjoyed having you. >> preparedness month. get a satellite radio if you're leader. if the grid go down you need to be able to talk. neil: i don't think you would need that, general. always good having you. thank you, sir. my emails lighting up talking to the general. we'll talk with our connell about what he just said. what sis inning this country. that. after this. ♪ hi, tom. hey, how's the college visit?

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neil: you know if you ever wondered why donald trump is at least registering with the polls maybe that little chat with general honore proved it. outside the box, angry guys, letting us be known we were not what we were. i didn't get from general honore who saved new orleans and louisiana after katrina not necessarily in donald trump's mind but saying if we're not careful we'll lose what is great about this country is a message that does resonate. charlie gasparino, dagen mcdowell, adam lashinsky on that message. dagen, time for political fails, general honore, to extent donald trump says it is over. >> he speaks with heart, with truth and he speaks with energy. that came across. sitting there watching it. this sounds familiar and feels very familiar. but that is what american people are looking for. people who don't choose their

words carefully. then have to change -- if donald trump changes what he has to say, he kind of owns it. yeah i said this, now i'm saying this. move on. that's what people are looking for. neil: any of his critics at the time, stuck on stupid. >> think of it this way. i will repeat what i said yesterday which drew very angry reaction from dagen. a lot of republican voters do not care about the capital-gains tax cut that jeb bush would like. they don't care about repatriating of assets this other stuff republican candidates are mired in. okay. what a big chunk of the republican electorate is sick of political correctness, mealy-mouthed politicians. they think china is ripping us off, no one doing anything. comes to simple things. that is why donald trump staying power at least with 20 or 30% of the electorate. neil: not milting away. adam lashinsky, the bigger issue becomes how do other candidates, they have had a few weeks, six or seven weeks to sort of deal

with this, hoping he would fade away. hoping in your face approach would fade away. then i'm thinking of variation of likes of general honore, people want more of that, it would seem. give us details later. for now we want to hear more of this? >> well, you know of course the big difference between the general and donald trump so far that the general served his country admirably, nobley, honorably and trump hasn't. this man speaks from experience. -- neil: whoa, whoa, whoa. military is one thing and all of that, but let's face it. creating thousands of jobs and becoming a billionaire and doing a lot for, you know america, that has to register some way, right? >> well, so i agree. i mean i think that's good stuff but the point, it is good stuff, but the point i'm trying to make is, that you know, it is easy to criticize. it is a lot harder to do. this man has done.

trump hasn't, i'm sorry, to govern. he hasn't governed. neil: whether it resonates, that rage is what is clearly resonating. >> that part i totally agree with. it totally resonates, other candidates would do more for themselves speaking honestly. >> donald gave interview with hugh hewitt between kurds or quads. neil: quads are things you drive. >> yes, neil. in mud. >> it was a traction of -- faction of iranian military police along those lines. so i figured it out myself. it will not have impact on his campaign. >> people don't care. neil: doing that with afy who will co-host the cnn debate. >> screw-up of that magnitude for some of these other magnitude kills them. i think one of the issues that makes donald refreshing and also dangerous, is his penchant for demagoguery. that is the dangerous part. but interesting that he is willing not to, he is willing to

call a lot of issues very straight and speak, speak trait to people who don't care about the flat tax. don't care about all -- neil: you know what is interesting, dagen? >> yeah. neil: honore was criticizing wall street guys couple minutes ago. criticizing republicans. criticizing democrats. criticizing everybody and those who are not looking at the greater picture of america. >> yeah. >> i think that there in lies why people are upset and where the rage comes from is they feel ignored. they feel like they have had a president who has not looked at iran deal. we don't want the iran dial. tough. i will shove it down your throat. it is issue after issue after issue. >> by the way -- >> any politician who does what they want in their own self-interest and interest of people funding their campaigns that is what -- >> here is where we are neil. >> let me make this one point, adam. they don't think the republican

candidates up there right now, most of them especially top ones, very accomplished people will do that. will be able to effectively fight. think about what donald has done. make one point. he has made reputable politicians and governors, governors and senators reduced them to like nothings. neil: or being dull by comparison. adam. >> and i actually agree with everything you're saying and here's where we go next. leadership is not telling people what they want to hear. it is telling them what they need to hear. trump's not doing that right now. maybe he will. >> to a certain exextent you're right. >> maybe he will. >> want to clarify one thing. i got enraged yesterday for the same reason that the public is mad. because he wasn't listening. he cut me off before i made my point. and then started screaming at me. that's why i got mad. tell me what i said that -- >> your point was that, that

donald isn't conservative. my point is you have lost track where the a big portion of conservative movement is. they're more like your parents you said. your parents, last i talked to you, liked trump. >> they are starting to like trump. >> that's what i'm saying. admit i'm right. admit i'm right. neil: never, ever happen. >> you're still rude. neil: adam, want to switch what is going on wall street. got big selloff. volume is half of what is normally is. not people taking part in this. nonetheless a minus sign is a minus sign is a minus sign and a lot of minus signs today. we're so worried about china and so happy china was closed today as it was next. where is the next kind? we've been patting ourselves on the back saying at least we're not china. world comes to us. what if we are? >> well, i think, part of our problem is china. so, i mine sure, if the united states has the sort of negative

growth that china had, decelerating growth -- >> decelerating. not negative. >> that doesn't appear to be our problem. >> we are still in weak expansion. say couple things about china. what investors are worried about with them because you can't trust numbers there, they don't use accounting. when china decelerates, we're not talking negative or we think we're not talking negative, that contagion spreads throughout the world. and it has got to impact us. we should point out we're good-looking bark wards, our gdp is positive -- backwards. you have to look forward. you have to be forward-looking. neil: look at reactions to the jobs report. what was the concern, dagen? the fed is in a box, right? >> that the job market is good enough with 5.1% unemployment rate. you still had 173,000 jobs added last month, that the fed will have to hike interest rates. neil: what if the fed never does? i heard argument expressed by end of the year, if it doesn't

there is hell to pay? >> i don't know what is going to happen. i will tell you this. i think people looking at job report saying wow, economy is not that great, and guess what? they still have to raise rates. next year we might have recession. neil: what do you think, adam. fed painted itself into a corner and now has to raise rates at probably least opportune of moments? >> the fed can change its mind but yes the fed signaled it will. so i think highly, highly likely it will. neil: what if it doesn't? what if it doesn't? in the past dagen pointed out yesterday, it heralds weaker-than-expected news. that means you can put this day of reckoning off. but now seems like -- >> market is schizophrenic about this. >> i agree with that. >> market is schizophrenic and easily react, say, let's go. neil: for a while become like my mother-in-law. >> federal reserve getting ready to hike interest rates by end of the year more than likely but rest of the world is heading towards recession because of the weakness in china and collapse in commodities.

neil: things that bad across the globe? >> heading into recession, australia. canada already there. ecb is ramping up the stimulus rather than pulling it down. >> radial can my of finance by george soros. interpretation of -- neil: why are you leaving us with a homework assignment. >> i would read das capital before i read that. >> we don't know where the markets go. depends where the inflection point is, when the fed does when it does. neil: real quickly, adam, does it hurt democrats, hillary clinton, who does it hurt? >> i'm sorry, neil are you asking me who the fed moves hurts? neil: yeah. >> i think hillary clinton. i think democrats benefit from the a continued expansion. so i don't think the fed will kill expansion. i don't think this tiny move will -- >> it hurts speculators and helps savers. people are socking money away. >> helps certain real estate moguls running for president.

>> i don't think that has huge impact on presidential election yet. neil: the worse those numbers get on the dow, better his poll numbers look for one donald trump. it is amazing. and it is pivotal time in this country. doesn't trish regan know it. trish? trish: neil, thank you so much. we are in a market with step selloff to the close. welcome to "the intelligence report." i'm trish regan. stocks sinking on august jobs report. nowhere to hide. every s&p sector is lower. joining us what we can expect as we head into the close, stephen guilfoyle, jim rickards, brian wesbury. brian, reaction to sell off today. are people that worried about the economy? if so, wouldn't they think the fed would keep status quo? you would think market would be up with a report like this. >> i actually, everybody keeps calling this a weak report. there is no