anthony: i'm anthony scaramucci. liz: i'm there is claman.

one of the biggest economic issues took center stage. america's massive debt and deficit. >> during this regime we doubled our national debt. we are up to $0 trillion. >> i maid for everybody i'm proposing. i do not add a penny to the national debt. i take that very seriously because i do think it's one of the issues we got to come to grips with. >> just how crucial is addressing the debt and our deficit to keep economy and markets moving forward. recraig, the founder and co-chairman of 50 partners joins us. are you a little troubled? >> i'm troubled how little true economic policy issues are being raised in the campaign. but that's a campaign. >> we are looking at people's portfolios as it pertains to the debt.

liz: when donald trump mentioned that he said we had presidents bush and obama and we have seen the spiraling out of control debt. what does that mean for people's portfolios? >> i'm not sure it makes an easy link between them. one could argue right now it's extremely low rates. about a third of sovereign corporate debt is negative interest rates. 51% of the bank of america government bond index is at negative rates on a real rate of return basis. if you are a business you look at that and say, the ma low economy is not a big business. but it means individuals will not get yield out of bonds. the old idea of having stocks and bonds to give you income and are stable, the second part of the equation doesn't work anymore. anthony: what does the

individual investor do? >> there are a lot of tried and true practices. but simple rules of thumb. if the stock market is too risky for you. do the 60-40 put the rest in bonds. you will get stable value, it will be stable income. not true. you will have to go to a 20-3 some year bond before you get a yield. there is something we do at 55 capital partners. a 30-year bond has a real volatility relative to rates. how do you go about not only picking stocks with good dividend plays, but also a great growth opportunity and at the same time make sure you are not buying too high a price. >> it's a tough one and you don't. we tend to think about what institutions have done for a long time.

with the thousands of etfs out there. investors can or their advisors build a portfolio, multi asset, it includes stocks, bonds, currencies, commodities. by putting them together you can couple with a robust portfolio with more ways of diversifying. >> are you worried we are overtipping allocation or do you think it' the first inning of that. >> you are asking a question about some people saying do index funds undermine capital allocation markets? i don't think so. when is there enough active management. if no one indexed it there would be too many active managers. what's the balance? it's when the after-fee returns

or before fee returns equal the cost of active imagine the. of late that's not there. liz: what else that? 1% or 2%? people don't want to pay somebody to lose their money. >> it depends on the structure. but when you talk about money management. hedge funds are trying to charge 2 and 20. $25 billion float out of hedge funds recently. people have radical transparency. we can buy a plane ticket and know what every airline is charge. anthony: i'm in the hedge fund industry. i think the reports our death has been exaggerated. there is a troll for active

management. and there is also dislocations due to emotions that hedge fund managers take advantage of. but i agree etfs from the individual investor and indexes are very, very good. but my central question, could there and potential disconnect between the underlying basket and the actual etf? something happened like that in august of 2015. is that something you are worried about? >> i don't worry about the capital allocation question. this pry private equity and private companies. there are ways of dealing with capital allocation. what i do think about is more than market forces, does it become while to chase lfi. i, too, have went in hedge fund business. the problem has become the tight come for example between people who does very well and people who do not as well. and the returns aren't as grand

as way from the average. you can get more benefit tbid building a port groal across asset classes. >> whether it is the retail investor who wants to pick and choose their own etfs on the cheek other hedge fund investment community. let's bring it full circle back to deficit and debt. dick cheney said deficits didn't matter. then he started to try to scweefts it down, had a modicum of success there. might this eventually blow up in our faces or you just look out, that's too far from now. 30 years, i don't care. >> it might. we were talking about the numbers. the amount of debt we are talking about for the government works out to be $200,000 per household. that seems like a lot.

but that's comparable with people investing in education and their own homes. if that gets us highways, water works, i don't know if that's off, by the sounds reasonable. the problem is when it's not used well. because then you have to keep using it and it comes from taxes. so that's really the question. for investors, the question is do you need to think about it that way. our view is what you need to think about, there always broad set of asset class, equities, real estate, fixed income, and you have these across the globe. can you build pal portfolio that's robust and reliable and isn't dependent. anthony: more "wall street week." we'll be right back. >> announcer: hillary clinton didn't just go after donald

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>> when i talk about how we are going pay for education and invest in infrastructure and get the cost of prescription drugs down and issues people talk to me all the time. i made it clear, we are going where the money is. we are going to ask the wealthy and corporations to pay their fair share. liz: hillary clinton making her case for tax hikes on the rich in the debate wednesday night. anthony: how much will their fair share be. the politicians use that term but they never steam put a numb on it. liz: joining us, the bane managing partner.

let's tackle the term "fair share. >> i don't think there is a definition for it. the democratic strategy is more and more spending. state, federal and local spending is 36% gdp. and they want to add another $165 billion spending. if you project forward into the future the federal budget office' expects it to rise even worse than that. i think the strategy is just more, more, more, no mat wear level of spending we get to. anthony: you make a compelling case in the differences in the up side of inequality. tell our viewers what you mean by that term. >> if you look at the united states, 25% of our workers score

in the top third of academic test scores. 45% are in the bottom third. in japan it would be 50% at the high end. 15% at the low end. germany has twice as many high-skilled workers. we have been able to grow our economy faster and grow our economy two times germany and france since 1980. three times japan at medium wages which are 15 to 30% higher. we have done that through entrepreneurial risk taking. >> my question, if you can answer this question you can save measha rinkage on the psychiatrist's couch. the ideas are very good and very sound. but there is no communication of these idea with the republican party. why do you think that mess and doesn't resonate into the marketplace? >> i'm trying to do it with the

book which is explain what the facts are. how we compare to europe and japan. what people don't appreciate what the democrats take advantage of. if we raise taxes how much will it slow growth next year. if europe cut its taxes how much faster would it grow it doesn't have the institutional capabilities to grow. slowly over time u.s. institutional capabilities, getting on the job training, google and facebook, the silicon valley is an example. it makes our most productive workers way more productive. >> that's based upon the private sector providing that job training instead of having government job training programs of which there are dozens and clearly it's not work. the jobs opening numbers are pretty high, but there aren't the qualified workers to fill those jobs. so there is a discorrect there.

if you talk to conservative -- there is a disconnect there. if you talk to conservative think tanks they say what will save us is tax hikes and spending cuts. >> i agree job training independent of jobs, the research consider doesn't work at all. sow i agree with that 100%. i think donald trump is talking more about cost cuts than hillary clinton. he talks about cutting obamacare and things like that. there is some cost reduction there. what happens to the republican party in -- in 2020 and beyond? >> you have to find common ground between the reagan and

trump democrats. and the free market economist who believe that we have to have free trade and been largely open immigration borders to grow the economy as fast as we can. way argued to both groups, it's not trade. but trade deficits are a big problem because they bring savings into the country we have no use for. unless we bor -- unless we borrow that money and spend it, in the case of immigration we can't forego immigration, when you look out into the future, baby boomers retire and eat us alive. you need high-skilled immigration to grow the economy. liz: thank you very much. i'm a little depressed. but thank you. good luck with the book. "wall street week" will be right

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anthony: obamacare is about to hit critical mass. liz: in some areas of the country they will have few options. but the president defended his signature legislation. >> i always said for all the good that the affordable care act is doing right now, for as big a step forward as it was, it's still just a first step.

it's like building a starter home. or buying a starter home. it's lot better than not having a home. but you hope that over time you make some improvements. anthony: is that best analogy for people facing 0, 40, 50 percent premium hikes? >> the best sales pitch i ever heard it is not. he compared obamacare and the message is at least you have a home and you can fix it up. he also compared it to an old phone. you can upgrade your phone. if it's not a note7. it seems like obamacare is a note7. what it's done -- bill clinton said this. it doubled our premiums and halved our coverage. how do you fix this?

>> i think that might be the ultimate single payer thing. a bert analogy would be a dilapidated match. let's face it guys, the real deal is everyone saw -- i don't think anyone here is shocked. we talked about this as they were cobbling this together against the clock, the political clock when they could push it through without any other republicans supporting it. they made certain assumptions. what's happening right now. the transitional re-insurance stuff is going away. insurance companies can no longer be reimbursed and they are saying we don't want to ber to be part of it. liz: 30 states will lose aetna and in some cases united healthcare. the insurers are backing out. so there will be no options. you can see down the road here comes the single payer government option. why doesn't president obama look

at this and own the two pieces of this that people do like. the kids are covered until they are in their mid-20s under their parents' plan and they at least have some type of coverage and it's an opportunity if they have preexisting problems that they won't get dropped. charles: those are the two things hurt can the rest of it because young people don't get sick and preexisting conditions are expensive. and before insurance companies went over from $60,000 to $50,000. aetna was okay with it. from march until 2010 aetna's stock was up 260%. so those two things work in public. how do you make them work from arithmetic. anthony: we go to a single-payer. what do you think of that? >> will doctors accept that sort

of coverage? anthony: what will happen. it will be a two-tier system. the v.i.p.s will have their own hospitals and you will hollow it out for the rest of the people. the left-leaning policies do the opposite of what's intended. >> speak of young people, the numbers are less than 30% of the 13 million of us on exchanges are young. young people aren't signing up. other people are getting pushed out. united health lost a billion dollars on this exchange. obama had both houses on his side. charles: the democrats had a veto-proof majority.

liz: if you said you are a smart guy, how would you fix this? what would you say? >> remove state lines. if you were to think about how come walmart, costco. how come they drive prices lower but provide a quality product, but make eight competitive product that you have alternatives. why are we having this discussion? 200 cities will have one carrier, most states will have one it's just a lack of competition. prices go straight to the moon. liz: you are hired. charles: thank you. anthony can you make it introductions. anthony: you would be a great spokesperson. before we go, where do you see things? >> i thought you were going to ask what i would do. charles: i think if donald trump had been talking about this for the past two months when people

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anthony: i'm anthony scaramucci.