dagen: thinks julia gabriel, jon hilsenrath, one and all. thanks for all the inside. mr. varney is here right now. "varney & company" is up next. take it away. stuart: thank you very much be the grim reality sets in. the great houston flied its getting worse. north korea launches a missile, did north korean people told to take cover. president trump says all options are on the table. here comes the stocks heading south. good morning, everyone. president trump is on his way to arrive to a flood of biblical proportions. it's still raining in the flood has yet to press. the races on to save people and save america's fourth largest city. yes, it is that bad.

the president will bring a promise of money, manpower and the military. the gold coast needs at all. north korea's blatant provocation. japanese people woken up by a red alert from broadcasters. take cover at the north korean ballistic missile flew up ahead. the south korean military has responded with a live fire precision bombing run close to the north. no military response from america at this point. the president has not taken it off the table. i mistake on either side risks were. investors don't like to hear that. today they are selling. the dow opened sharply lower. but it is the human catastrophe unfolding in houston that is great the attention of the nation. earlier in unthinkable forecast to 50 inches of rain, the still rising floodwaters and directly from people who have lost everything. "varney & company" is about to begin. ♪

let's get right at it. the flood of biblical proportions. jeff flock on the ground in houston. am i right in saying the water levels are still rising? reporter: they are. particularly in this neighborhood, stuart. this is the epicenter of a career problem, which is the addicks reservoir. there were two key reservoirs which had been releasing water. it is now overtopping and so when this neighborhood, water continues to rise and folks are sweating already you can see the floodwaters. but it's getting worse. the folks that are here are coming out saying could we potentially lose the. it's terrible all over, but this is the one they are most concerned about right now. people outside their home saying i've never seen anything like this before. occasionally water in the street, but this is something they've never seen before and it

may indeed get worse. stuart: we are told in an area the size of lake michigan is underwater. if i say the races on to save houston, am i going too far? >> you know, it is hard to quantify it because it's such a broad area, but i don't think you've gone too far in saying lake michigan. it is a big piece of water. this is a big piece of water in to say that, to save the people, it's not like katrina where there was huge loss of life, but the scope of the damage ms and the widespread nature of the damage is unlike anything we have seen before. i've seen a lot of disasters as you have over your career in journalism. this in terms of the enormity of it has got to be may be at the top.

stuart: jeff flock in the middle of it. thank you. will be back to you. ryan zinke e., secretary of the interior. a call for more helicopters from the military. will houston get all that it is, mr. secretary? >> absolutely. the president laser focused on a pure numerous means that the president moving forward today. our charter is the cabinet to provide all resources. the governor still is in charge. i think the concerns are as you point out the pms. the dams were constructed to make a controlled release after the water over time in a controlled release now spillover and houston of course there's nowhere for the water to go. it begins to trickle and then finishes up with a lot of movement of water, in some cases for five feet of additional

water already in areas flooded. turning to mr. secretary, you can see it perhaps on the left bank of side of the screen. the president aboard in the first lady heading down to texas. before he took off, he issued a statement about north korea. i want to read that to you. put it up on the prompter, please. this is from the president about north korea. the world has received north korea's message loud and clear. this regime has signaled its contempt for its neighbors for all members of the united nations at the minimum standard of acceptable international behavior. threatening destabilizing actions only increased the north korean regime and on all nations of the world an important part, all options are on the table. mr. secretary, you are a farmer navy seal. given the difficulties come is the military in a position to respond? >> the military is always in a position to respond. we have to also look at our allies in danger and certainly

our territories. once again, baum and territories are at the frontline of aggression and we have a great military that is capable of responding. i hope it doesn't go there, but if necessary, the president is absolutely correct, all options on the table. trade your just a couple days ago, north koreans launched three missiles. 24 hours ago they launched another one that flew over japan. the president previously has said don't do that. consequences will be severe. is that what we are waiting for now? severe consequences? >> we at china. china has a leading role in this. certainly the most influence defending with north korea. japan our ally is closest. we have south korea. this is an international effort, has to be. certainly, when our territories come united states citizens are at risk, we need to take action and the president is doing it.

stuart: are we close to war? >> i believe continued aggression. i don't think you can ignore it. certainly ballistic missiles are capable in launching and the capable of striking u.s. citizens, and that is a significant concern. i've talked to the chief of staff of the army. this is a few months ago the message has not changed. his major concern is not afghanistan. it is not the middle east. it remains north korea. stuart: ryan zinke, secretary of interior, thank you for joining us. >> my pleasure. stuart: president trump is heading to texas. political consultant harlan ellison says. you are a trump guy. i want you to grade the president's response to harvey so far. >> the president's response has been measured, professional and in-line or exceeded in responding to major storms such

as this one. the most recent examples would be president obama in katrina in the case president george w. bush. the president blocked it out of the park. historically unprecedented event. train to congress will move quickly, speaking to the people of texas, saying you will have what you need and you will have it fast. he's got to fulfill that. >> full support of the federal government is behind whatever the people of texas will need. i'm absolutely confident that will happen. >> it is interesting to me in traveling to the us watching the mainstream media this morning and over the weekend. we have a major american city under occupation by an historic one in 1000 year flood talking about confederate statues than they are talking about distractions designed to undermine the president of the united states during a time of crisis when our fellow americans are suffering.

sure into i've got monitors right next to me in the studio. i've got a banner across the bottom of the screen, msnbc, donald trump in the impeachment standard. that's what they were taking time with this morning. >> what we've seen in the streets of houston has restored my faith in america that we can still come together in times of need and support one another despite race, creed, ethnicity, gender, any of this. they've shown us an example of how we can behave in these times. you turn on the television and look at the mainstream media and it is designed to continue to divide us. that is troubling. that means to me that some aspects of the media are the worst elements in american society and they do not reflect what we are seeing the streets of houston. i don't like it. stuart: you've been away a long time. you are dead on target. thank you very much, sir.

take a look at where the market is going to open this morning. we are going to be down triple digits. both koreas send stocks lower. that is the main cause of the current decline. take a look at the price of gold. stocks down, north korea threatening. the price of gold strata. 13.28 of gold mounds right now. am i right herein saying that this downside was the stocks up for gold in north korea? >> also the u.s. treasury with the classic safe moves, money pouring into gold coming u.s. treasury. this is around the world. this is not just the u.s. market. started in asia, continuing in europe will happen. stuart: is used in a negative factor? >> yeah, it is. we will talk in a show how one pipeline supplies any of the east coast.

it's been help the storm surge and flooding. the dollar is a 16 month lows. you see the future is actually my plan after south korea staged a live fire drills simulating the destruction of north korea's leadership. that was hours after pyongyang shut the missile over japan. he stopped the action in the future is last night. stuart: one little mistake is all it takes. harvey getting ready to hit again. that the news of this. heading to louisiana as well. this is an all weak storm. janice dean coming out. she is looking at 50 inches of rain. look at this, anheuser-busch sending to the flood that devastated 50,000 from georgia. we continue to seek amazing images. not only the devastation, but the heroism from the storm as well. you'll see it throughout the program. "varney & company" continuing coverage of harvey. right after this.

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stuart: rob schmidt is live at this hour richmond, texas right outside of -- right where the flood water was waist deep. i can see it. the question for months as are those floodwaters at this point still rising? >> they appear to be. i can tell you where i'm standing right now is not under mandatory evacuation yesterday when we shot an entire story over here and overnight they made the decision to put this under a mandatory evacuation. peacock cosgrove, richmond, texas, 25 miles to the west side of the city and this is a suburb inundated with water. let me take you over here.

an indication of just how deep the water is over there. this is a nice home. a lot of the subdivisions, some of them brand-new still have the sales office signs is just incredible. looking down the block you can see how much deeper it gets. you can just see the windshield and roof and an suv else all about. what a mess. such a beautiful neighborhood inundated with all of the water. the only god knows that i have to report as i can tell you the rain is dramatically declined from yesterday when we were just getting soaked all day. it's not even raining at all right now, which is a nice reprieve from now. you've got the brazos river a mile or two away from being. that is about at the top and it will start spilling over. you've got the funniest commended instantly not come in the bayou near downtown houston. griff jenkins reported there all week. what we saw here yesterday was

an incredible testament to just how good these people are in this area and how they really come together and you hear that in a lot of in a lot of the storm stories, the worst conditions bring out the best in people. it is just a remarkable sight. we pulled up to a staging point half a mile on the other side of the subdivision and we saw people coming in as fast as they could with boats. these are regular guys like you and me who say i've got a boat. you'd have people stranded in these homes alter the subdivision. they can get out, don't know how deep the water is than they are stuck in their houses. they need to get out. so they go in with the boats and they save and they save the people, bring them up bring them up in one case and in 10 hours he pulled 150 people at the subdivision. they put a police officer on the boat and bring them out. it's really remarkable. stuart: thanks very much for joining us. you told us how told us nowadays. water is still rising. terrible situation. rob schmidt, everyone.

thank you indeed. the effect on gas prices in the refining industry on the south texas coast. we're joined on the phone with the texas railroad commission, basically the man who has a lot to do with regulating refineries. sir, welcome to the program. we can't get a clear position of what's going on with these refineries because you can't reach them. the staff is busy saving their own homes. can you give us an accurate picture of which refineries are operating in how long it will be before they all come back? >> i can give you an estimate. right now we have 10 refineries shift down between the courses i'm trained corpus area in the houston area. we have a roughly 10 or so refineries along the gulf coast. many of them at a reduced rate. during a 6 million-barrel a day capacity, we expect between two

and 3 million barrels, half of texas refining capacity is either offline or at reduced capacity right now. we will expect it will take anywhere from four to six, maybe eight weeks to get all of that talk online, assuming there's no catastrophic effects. stuart: brian, none of the bleak picture indeed getting those refineries back online and that is not counting a more serious damage yet to come. i've got to run, but thank you for joining us. it's very hard to get tight information from that area at this moment because it is simply unreachable. thank you for joining us. futures still down sharply. this is how the stock market will open today, down about 120 points. primarily due to the north korean missile that was aimed over japan. that is a problem for the market this morning, very close, frankly. higher sales at best buy helped

by strong demand for smartphones, connected home material and wearable devices. the stock however is down 4.5%. finished line is down and down big after the full-year guidance roughly in half. 33%, very significant drop. we have to take a short break. back in a second.

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stuart: texas took a hit and louisiana is bracing for something similar. turning us by phone, mike johnson, republican from louisiana. what does louisiana need right now? >> stuart, we need prayer. we are very well-prepared today. the 12 year anniversary of hurricane katrina coming to shore in the southern part of our stay. we are pretty good in our state because sadly we have so much to us. i'm in the northwest corner of the state right now where it looks like the storm is headed. i just let the mating with her local sheriffs and u.s. senator bill cassidy and local officials and they just can tell you we are hunkered down. everyone is prepared and ready for what is going to take place. drain to the president lands in austin, texas, about two and a half hours from now he will

land. he will bring with him promises of manpower, money and military assistance. in louisiana, one in particular would help you most at this point? >> we are grateful president trump declared a federal emergency disaster for five of our southwestern parishes or counties down here that is desperately needed because of course that opens the floodgates for additional resources. we have sent a lot of our folks and volunteers over to the houston area in recent days and because neighbors help neighbors announce what we do. we need all hands on deck and i need a room citizen armada to help and hopefully we will not get it. >> the president promises to deliver money. is he going to get money quickly out of congress? >> i believe he will. i think there's a real bipartisan consensus understanding the events are

such a broad scope that we truly do need the federal disaster relief in the hall. we will be good stewards of it here, certainly texas will come in louisiana will as well. but that is one of the roles the federal government as well because it's beyond the scope. >> congressman, mike johnson, republican louisiana. thanks for joining us. we appreciate it. a difficult time for everyone. thanks for taking the time to be with us. we've seen no improvement in the market situation over the past half hour i would say. still looking at a loss of over 120 points in the stock record opens up. the price of gas very much the point of our coverage of what's been going on as a result of houston. what you see now is the average price per gallon of regular gasoline all across the country. not just in the south texas area. it is up 1 penny from yesterday.

$2.37 per gallon. the real question here is what happens to the refineries and what about those pipelines which carry the gas north? >> we are not seeing gas prices spike right now. if any one of those main types between the part of the country towards the northeast is shut down in any way disrupting supplies of gasoline, then we'll see a big spike. at this point, you had someone on recently six to eight weeks or four to six weeks. i'm not sure whether that will have a huge impact because of the amount we have in store. however, one of the main pipelines affect it, different story. >> here's the thing. we've had 36% less in the area. really the creaky, arthritic infrastructure. he has to bring it to the market somehow. it is really under duress right now. we have one pipeline for the

entire east coast and in the colonial pipeline and as worries about fighting for that area. the president's going talk about supply. we have to talk about infrastructure and helping refineries. stuart: i was talking yesterday about maybe people would all over the country. that hasn't happened. >> advocate a headline saying watch out, that would be a different story. the refineries are just about to go would do the slowdown. they shut down for maintenance because the heavy driving season is over. the changeover to the winter fuel. whether that has impact, we don't know. stuart: how about this. more than half the homes and businesses do not have flood insurance. that implies to me, mike murphy is with us. that implies to me a gigantic loss and i don't know who's going to make up for that.

>> something people haven't been talking about you. i don't know the answer to that. this is a once-in-a-lifetime type flood and a lot of people are prepared. >> the federal government has the national flood insurance program. only one sixth the people living in houston even pay premiums anyway. what you have is a huge, huge homeless problem. stuart: it is a flat-out boss. >> we are talking a million homes and mold as well. that's a big issue. what happened as the retailers to peep into floodplains then you can buy homes here, but the close floodplains are lacking prairie grass said they were living in floodplains without knowing it. and so they didn't have the flood insurance that they needed. they even try to reflect gauges showing the height of the water and the realtor to do now. it was a fight with developers and the government down there. stuart: 20 seconds ago.

tuesday morning we will open the market and it will be down. the futures market suggest a loss of 120 points. in 10 seconds will find out exactly how we open again looking for downside movements and the north korean situation. the major neck at it for stocks and a big positive for gold which is up about 13 bucks an ounce as we speak. we are up, running them down. 109 points right from the get-go. a sea of red on the left-hand side. only one winner and that is bowling at this point. down 125 and that is the initial loss, half of a percentage point. can we see the s&p 500? we are down .6% on the s&p, the same as the dow. how about bananas back looking for a percentage loss. the nasdaq is down .84%. the losses are much bigger in technology than they are for the rest of the market. the price of gold, last time i

checked was around 1324. where is it now? i'm sure it is still sharply higher. we look at that for you in a moment. stuart: 1329 of $14. this is a flight to safety with people looking for the safe haven investment and they think they found it in the price of gold. look at the price of wholesale gas. expect yesterday, up again today. 2%, $1.75. that's the wholesale price. i don't know how much you would add on, but nonetheless the base price is rising. ashley and liz are with us of course mike murphy and todd horvitz. stocks went south last night out of the north korean rocket launch. is this the big negative this morning? >> it is. houston is a horrible story for the loss of life. that's affecting the market.

this is all about north korea, all about potential for one report out of a big pink singing it's now at 35%. that risk. we are already near heinz announced in jittery people out there. stuart: todd horvitz, looking at the flow of money out of mutual funds. $30 billion has come out of mutual funds. that's a little guy pulling money out of stocks. $30 billion since june. is this the start of a larger decline for the overall markets? >> good morning, stuart. i believe we are going to see a much bigger decline over time. i don't think anyone has to panic today. you can see by the market action it's really only down 100, which is not that big of a deal. retail investors are not going to be concerned and they want

their money off the table. too many uncertainties around the globe right now that don't make sense. because they can't raise rates study of the economy is not as strong as you'd like to believe it. they are taking money out of put it away so they're not at risk for what goes on in the market. trade to the same question to mike murphy. is this this part of the forecast general decline? >> if the north korea issue can be worked out, you will see the market right back to 22,000. we seen this a few times, 22,000 down to 215, 216. imitate the other side untranslated todd's argument. out of mutual funds, for the last several weeks. yet still at all-time highs. when you get the news, what happens with the money? back into the market. ashley: don't forget, the last week in august, one of the craziest weeks of the year because they are out on the

beach right now having a good time. the moves are pronounced because of the volumes. keep that in mind. stuart: if you brought old coins to the grandchildren come you're probably doing okay. the price of gold up another 14 bucks over the $1300 per ounce. the price of gas at the wholesale level also in the rise again. the backdrop of the markets here. let's get to the storm of course. will the rebuilding stimulate the economy? todd, you first. a lot of money pouring into south texas and louisiana very, very quickly. i don't care where it comes time, but that money will be spent. is that stimulus? >> it's always stimulus every time we've had a major event of work, it does bring in business and jobs. one of the big problems you talk about earlier, who's going to eat all this money for people who don't have flood insurance. that's the banks or the federal government.

it will help jobs, a lot of things amongst the local economy will have people having jobs that will come to work there and help rebuild parts of louisiana. >> we are down 100 points on the dow industrials 99 and change to be precise. 121706 is where we are. a couple individual stocks taking a hit or gain. first of all, taking aim at apple with its smart watch. the new smart watch will cost you 300 bucks. you are shaking your head. what is the problem? >> that's like saying you're going to get into boxing with floyd mayweather. they'll go after. >> let's take a look at apple. september 12th is the day when apple announced and revealed its new products including the new iphone. will you be standing in line to buy the stock or the iphone?

>> i won't be online for the phone but i will buy the phone once it goes down a little bit. the stock has historically performed well in today's releases. it hasn't had a huge run-up come is still trading at relatively cheap prices compared to the overall market. you can buy apple here and we will see balloons falling across as a trillion dollars. stuart: todd horvitz come i don't believe your pineapple but i will ask you if you are anyway. >> i sold out but 162 and i'm going to -- i think i'll go significantly lower from here. if you own it, i wouldn't get out, but from a trading standpoint and the seller. stuart: dueling analyst this morning. nothing wrong with that. best buy, take a look at that. stock prices down. investors rather doubtful about it. >> here's what happened. they did have a solid earnings and sales report.

these strong sales are not the new normal. the stock was up and then it went down. he erased the gains so far this morning. the people have been writing best buy's obituary that it's going to follow circuit city, but still coming in strong. the sales coming in around a point i'm billion. not that bad. >> i think if you want for any traitors at home, is set for a trade if you want it back to where it was trading this morning about 15% move. stuart: now we have trying to respond to the online explosion named amazon. nordstrom expanding its reserve online try on in-store pilot from its original six stores in washington state to 43 nationwide. i have a clue what that is all about. they're trying to make an online presence. is that what they're doing? liz: yeah.

stuart: todd, do you have any comment on that? liz: he doesn't. he's speechless. stuart: i don't know what you are doing. go ahead. >> i just think that again, the problem we have with the amazon is the playing field is no longer be fair for the capital amazon can raise. the average retailer can't compete with that anymore and that's the bigger problem. stuart: that is the long-running story. liz: at the christmas at your front door of whatever amazon package. i'm kidding, i'm kidding. stuart: you should see the apartment buildings in new york city. the truck rolls up in the 200 packages. >> it's making our lives easier. department stores have to figure out a way or they are going to

go bye, bye. stuart: i'm with you 1%. i like technology. i'm not necessarily an early adopter. >> just for you. stuart: who do you think organized date? check this big point. we are down 106 points, okay? north korea is a big negative thus far today. to the new york stock exchange, defense stocks. nicole, tell me all about them. >> this is one group that tensions with north korea won't be surprised to see this group without errors and general dynamics, northrop grumman each gaining more than half of 1%. lockheed martin up 1% and the percent and the make of the tomahawk missile at 1.5% and hitting a new high. the trade today while we keep a keen eye on harvey and obviously down south in taxes, obviously what we are seeing with north korea.

the dow is down, the pressure is on overall and never once finding the golden treasury. stuart: yes, they are indeed. give me a safe haven. they do it for you. we are 10 minutes in. i have to say goodbye. thanks very much indeed. you're all over it. we appreciate that. the big board down 97 points now. next, janice dean, the latest rainfall totals in the forecast with new orleans as well. watch out.

stuart: let's collect on 100 points. pretty closer got to say down 87 down 130. slight comeback. the price of stocks down. the price of gold.

that is a safe haven investment. north korea. the problem, pulled out. straight to meteorologist janice dean. you've been right so far, completely so. am i right in saying that you are forecasting 50 inches of rain were some areas in texas, correct? >> we are getting an official reports right now. 49 inches in part in and around the houston area. still waiting to confirm that. here are the confirmed storm totals as of this morning. southeast and 43 inches. baytown 37 inches. again, we still have in some cases six to 12 more inches to go. if we have 43 inches, with party surpassed back in 2001 as far as to what is tropical systems in texas history. 49 inches verified, then we would be at the top where this texas system of all time.

in terms of what assistance for the u.s., we have a hurricane back in the night and 50s that struck hawaii and that number was 53 inches. so if we surpassed 53, we will be at the biggest rainmaker of all time. as soon as i get official notice of 49 inches, listen, what's another couple inches. stuart: tell me about your lens. is it now under direct threat? >> look right now, this huge line of showers, thunderstorms. in some cases we are talking about four to six inches an hour. as long as the system is out over open water, where the counterclockwise only going to have the threat of very heavy rain working its way up from the gulf of mexico. so that is a really heavy line right there. yellows and oranges with the heaviest rainfall in with the houston, east of houston moving in towards louisiana where we had the heaviest rains still getting rained by the way for

houston. river gauges that their capacity for southeast texas. it is overwhelming here. we are just an inch away from surpassing all records in some cases across the houston metro area. moving into lake charles and new orleans, flash flood warning for you as we get very heavy rainfall for the louisiana area. stuart: thank you very much for your coverage. i've got to run. it is biblical, is it not? >> it absolutely is. stuart: janice dean, thanks everyone. let's get to be a spiritual stance church denies reports that it closed its doors to flood victims. the church was planned on social media. what is the story here? >> to 15:00 sunday the church puts out a statement on social media is inaccessible here, close to the flooding. here's where you can go for shelter. people started posting on social media, wait a second, the streets or in your church or wet but it doesn't look like

flooding. the church came back inside look at these photos. they're splitting inside her church in the parking lot you can see it right here inside lakewood church. stuart: one of the biggest in america discredited. >> that's exactly right. jesus would open his doors. they are saying no, we have flooding inside the church now. they put is saying yes, we will shelter people. we are cleaning up as fast as we can to take people in. you're not going to shelter people in water. stuart: clearly you're not. i'm staying on the storm. tony perkins, you are in louisiana, tony. your church is organizing relief efforts. tell us all about it, please. >> year ago this community was flooded and we were the recipient of help from across the country and now we are very sensitive to churches in this area, organizing relief to take over to texas.

talking of pastors in the houston area whose churches were flooded. they are working as hard as they can to get back on their feet to help their community that's been devastated. as he pointed out, this is a storm of biblical proportions. we are seeing this more frequently with greater intensity in this requires everybody worked together. government, nonprofits, churches and unfortunately we've become fairly proficient at this because of the frequency we been doing it. stuart: what exactly are you doing maybe within your church. what else are you doing? >> because we know what is necessary in the median hours after floods like this and is usually the first 72 others which are the most critical. that is more in the regional area, but food coming in, cleanup supplies in the become isolated, oftentimes cut off from the outside, even though we see all this media inside the

bubble you don't see it and you become isolated. just to know that help is on the way. if these people walking with you, we are year out from the major flood in the louisiana and rebuilding is still going on. we still are housing relief effort in our church could make dealing with this area. this is going to be an ongoing process that everybody has a role to play. stuart: are the churches in kind of a network of help? christianity is very strong in your part of the country. not implying it's week elsewhere, but texas, louisiana. and thinking there must be a network christian to christian. >> there are. we have a network of 15,000 pastors, so we immediately began talking to those pastors and connecting them with samaritans first going in. i was talking yesterday, moving into houston as soon as the roads were cleared. stuart, this is where we see the best of america and the worst of

times. when people are being housed in churches or other shelters, no one asked what color they are. no one asked what political persuasion they come from. they see them as another human being in a situation is needed. this is what makes america a great nation. >> will you please tell the media that? i think they need to hear it. tony perkins, family research council, thank you for joining us. we have come back to this. we were down 130. cutout boss in half down six as we speak. plenty of red left-hand side of your screen. that is a mere 67-point loss with all the negatives. that is not bad. 21,741. back in a moment. rethink your allergy pills. flonase sensimist allergy relief

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stuart: at the world cup this morning and you're just joining us and you thought maybe the waters would be receding in houston, i regret to say you are wrong. the rain still falling or is about to fall some more in that area and that storm, hervey, now threatens new orleans. i want to talk about the retail impact. retail watcher with the

strategic resources with us. i want to know if there are retailers who are big losers in harvey. number one. >> number one target because they outsource distribution. mckinsey & co., really decision. all the competitors from wal-mart to kroger to cosco, replenish quickly. target can't take care of the customers in the sunny state to sauce from florida to new york steak to new york state, completely wiped out back to school. texas, complete chaos. stuart: target number one missouri. the richer list in your second on the list at amazon whole foods. we are not used to hearing negatives about amazon good >> they can make deliveries for amazon, but more importantly global foods that target don't have what is called inventory of local and regional in terms of warehouse systems at the southern key competitors are the stores are too small. they don't have bathroom

stocking on the shelves are deficient in a postal wins in the stores is that of having extra inventory covers those saloons don't help before, during or after storms. train 2943 is the price, down 110 bucks. that is the significant drop. number three in your list, targeted loser, amazon whole foods is. dollar stores, with the problem? >> the stores are too small so they get blown out of inventory and about 24 hours and it will be weeks until the replenish. stuart: inventory. you've got to have big inventory. isn't that simple? >> it's that simple. the key corollary which is blue lineage. the legendary founders, bernie marcus then the blake family because rolled up his sleeves, tim wilkerson is in charge of average income operation is fantastic.

frank's wife, chelator for habitat for humanity and frank junior, operations manager, ran stores in north carolina. they know how to do it. stuart: you lost me. who is this mr. blake? b. mackey's running now and he completely transformed home depot before, during and after katrina. best worldwide. stuart: by comparison with donald source is not doing well. >> particularly target, whole foods still struggling in the struggle somewhere. stuart: thank you very much indeed. they put in my ear your name as if i've forgotten. thank you very much, sir. stuart: president trump is on his way to texas. this is a once-in-a-lifetime natural disaster. they've defined his presidency? there is a decent question for

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stuart: a presidency is often defined by the challenges it has to face. the biblical houston flood is president trump's first great challenge. it is not of his making and the presidency can't make the waters recede but a president can lead. he can bring the country together and focus the nation on the task. that is what president trump is trying to do right now. he will get no help from the media. they loathe him. they are looking for the slightest fault, any fault. look at this headline in the trump-hating "washington post." trump abuses his power to help the cause of bigotry. that is a reference to last week's pardoning of sheriff joe. the elites have no time at all for texas. how much help will he get from the left? well the president has asked for a bipartisan approach to funding houston's recovery. he wants democrats on board with supplying the money.

he will have to overcome the deep-seeded hostility that coastal liberals have for the brash, successful and republican texans. it is this divided country that president trump is trying to unite. when you see the bib big call scale of the houston flood you would think all of us would rally around him, as we should. a flood shows a knows no ideology. that is the president's challenge, to lead, to rally, in times of trouble. he land in texas, two hours from now. the second hour of "varney & company" is about to begin. ♪ stuart: the latest on harvey. at least 14 dead. officials say they won't know the exact number until the waters recede. the water continues to rise. the rain continues to fall. the at ddic s. res. voir in

harris county fitting over first time in history. addicks reservoir. this has not happened before. rein is expected to fall all week in texas. 50-inches could call in some areas when all said and done. rescue teams evacuating hundreds of people near lake charles. check the big board. we're now down 350 points for the dow jones industrial average. we had been down 130. the big negative for the stock market, north korea's missile fired over japan. check the price of gold. that is why gold is up 10 bucks an ounce, a missile from north korea fired over japan. president trump on his way to texas right now, joining us katie pavlich, town hall editor, fox news contributor. katie, would you give us a grade on president's handling of the storm thus far? >> so far he deserves an a.

everyone will watch him very closely. political opponents will pounce on every single thing he says or does wrong, even though a disaster of this scale doesn't fall on one person, especially the president. he has done a very good job relaying to local law enforcement they need to do what they should at the local heavily for people to get what they need. he will go today. it will be a humbling moment for him. nobody has seen anything like this before. he will go there to really realize the huge impact. one thing to be briefed in washington, d.c., to go there from people on the ground and hear about the stories of people who have been rescued. but i think he is trying to stay out of the way. stuart: he already said you will get everything you need. he is saying you will have what you need and you will have it fast. >> right. stuart: congress will move quickly, a bipartisan effort to come up with the money. >> that is a message to congress to get it together, get back, send me a bill with the fema funding necessary to get people what they need. now that won't go quickly. you know, if he is makes these

definitive statements about things moving quickly in d.c. on this, that will let him set up with a bit of a problem. that will not move that quickly, it never does. congress has a obligation not what they did with sandy, fill a relief bill with pet projects and fisheries for alaska and smithsonian roofs claiming it is relief bill. both sides come to the table. only focus on relief for texas, louisiana, that will streamline the process. stuart: he has a whole lot to jam into the legislative process. >> it should be a priority. stuart: it should be a priority. we'll see if it is. katie, say there for a second. want to get to the north korean situation. they fired over a -- fire ad missile over japanthey woke up people with red alert, take cover. ashley: the president before he put out this statement, he says, quote the world has received

north korea's latest message, loud and clear. this regime signaled its contempt for its neighbors, for all members of the united nations, for minimum standards of acceptable international behavior. threatening and destablizing actions only increase the north korean's regime isolation of the region, all nations of the world. more ominously at the very end, he says all options are on the table. stuart: ominously indeed. katie, president trump warned north korea about doing this, they did it anyway. >> right. stuart: this is really provocative right at president trump. >> of course. right at one of our main allies, japan, obviously because it flew over japan. in the statement that the president made he specifically mentioned this is affront to the united nations which is a mess age to them, maybe we need to come back to the table, again, rework the sanctions. put more sanctions on the table. again they said all options are on the table. which means they're not taking military force out of there.

stuart: i wonner if they're capable of taking military force with all the trouble the very much sendth fleet is in, aegis class destroyers are out of action. >> north korea knows that. north korea is watching our ships crash into other ships in the ocean. they're watching our readiness fall apart. all of our enemies watching that. stuart: this will not stop. at some point, somebody has to stop them. i mean with military action. i mean, diplomacy right now. you can see this coming down the pike. >> we had diplomacy for 25 years, 30 years? it hasn't necessarily work to stop the north koreans. so i know we're trying to put a lot of pressure on china. that hasn't worked. they don't seem bolstering sanctions they signed on to at the u.n. but military force is tough, tricky thing. you talked to many experts on your show. seoul is there. they don't have to use a nuclear weapon to cause serious harm in south korea or japan.

stuart: baptism by fire for the president of the united states. that is what it is. eight months in. katie, thank you very much indeed. come on in please, steve cortes. you're our market watcher of the day. am i right saying the big negative this morning is north korea although we come way back from there? we were down 130, we're down 50. the problem is north korea, correct? >> stuart i don't think so. not that it is not a problem. when i saw the headlines i thought whoa, this would be a tough day in the market. at least so far the market is largely yawning at this. are they nervous, sure? the reason for the market, the basically we've gone sideways for last six weeks, the market is not going down appreciably, but not going up making fresh new highs ever since the election until six weeks ago, to me the problem, the issue here is capitol hill. it is senate republicans and their intransigence. they are publicly at war with the president. i think the stock market is rightly very worried that we're

not going to get anything done on health care. if we get anything done on tax reform, it will be tepid. stuart: that is the worry of our viewers. some viewers think, look, this is the start of a long expected decline. i say that because we to the a new report, it comes to us from bank of america. they point out that investors pulled $30 billion out of mutual fund since late june. that is not a lot of money in stock market terms but it is an indication what the little guy, the small investor, the average investor that's what they're doing, they're coming out. are they right to be as cautious as this? are they right to be taking money off the table? >> stuart, unfortunately i think they are right. you know, ever since the election i've been incredibly optimistic on the stock market. stuart: yes. >> i believed all along that capitol hill was going to recognize what the american people shouted for from the rooftops in 2016, which is massive change, not incremental change in washington, d.c.

trump certainly knows that the white house knows that. senate republicans don't seem to know that. so i think investors are quite rationally reacting to that. some of that money went into etfs. some is shifting, but still i think there is no doubt, there is skiddishness in the market. we're not going down. we're not tumbling. we stopped going up the optimism is waning. we need senate republicans to get in line, realize we need growth 3% plus. stuart: that is the first time i've heard that from you steve. more than half of houston homes and businesses hit by harvey. reportedly they do not have flood insurance. it is absolute, flat-out loss. they are, i hate to say underwater, but this is a loss, period. now that surely is a negative for the economy, isn't it, steve? >> oh, i think most definitely it is. i hate to say this too, i don't

want to be debbie downer for you, houston is the fourth largest metro area in america. this large devastation in place like houston, hard to make anything but look bad economically. on the human side, thank goodness from texas, private citizens, government and local, federal level is really inspiring, as far as the economics i'm afraid there is no way to put lipstick on it. this is a bad situation. stuart: there is a position a race to save america's fourth largest city, which by the way has gdp slightly larger than sweden. that's how big a deal it is. steve cortes, not heard you so cautious before but we're glad to have you on the show this morning. thank you, steve. see you again soon. >> thank you. stuart: celebrities donating their money to harvey victims. country singer chris young pledging 100,000 bucks. actor kevin hart donated 25,000. he challenged beyonce, chris

rock, justin timberlake to donate as well. what else on the show today? the waffle house indicator. if you haven't heard it, if a waffle house stays open the weather isn't so bad. if they have to close conditions are really bad. they have 30 locations in the path of harvey. we'll deal with the waffle indicator. we brought you yesterday the story of jeremiah johnson, father of five with, baby triplets. he was on our show. they are safe and sound. he joins us later this hour with an update. you're watching the second hour of "varney & company."

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thing is down 2 1/2%. look at best buy. that stock went up. it went down and down sharply after the company said that its recent strong sales are not the new normal and would not continue. look at that. down 10%. finish line is down big. it cut its full-year guidance roughly in half and that stock hit a eight-year low, 21% down. back to harvey, jeff flock in houston. jeff, you're right at the reservoir. the addicks reservoir that is spilling over. what does that mean? >> these are the two reservoirs, barker and addicks. this is water out of the spillway, trying to release it, keeping the spillway an reservoir being compromised. if we pull out you maybe see the berm that holds back the reservoir.

they're concerned if that gets compromised, that is earthen reservoir. you're looking what has happened when they let the water out the spillway. it has washed completely over route 6 here, this is route 6, four-lane highway. six lanes at this point. completely overcovered with water. here is the concern. at a press conference just about an hour ago, they said, here's the problem. if for some reason either of these reservoirs if i have way, we're talking another 3,000 homes that would be inundated rapidly. i'll tell you talking to people out here, i talked to a gentleman that is a runner, run this is reservoir all the time, you said before this they were doing work on the reservoir. consequently it was higher level than typically is. >> we've seen a lot of water, standing water over the last few weeks in the reservoir. probably more than normal. they're doing a lot of work, construction work.

reporter: held it back doing construction work. not to criticize anyone. >> sure. there was concern a lot of water in the event incident like this -- reporter: unforeseen event like hurricane. >> they know what they're doing. hopefully we're, hopefully we'll be all right. reporter: but, stuart, that is the scary part. that is the headline from that press conference. anyone in the path of this, 3,000 homes, ought to think about leaving right now because you would have a, you know, you and i don't remember the johnstown flood, but we certainly know our history. that was the breaching of a huge lake, and you know, people got washed away. they are still looking for. that we don't want. stuart: i will call it a dire situation and you're right next to it. reporter: it is. stuart: jeff flock, thank you very much indeed, sir. stay right there. i don't want to make light of harvey but there is something called the waffle house indicator for weather disasters. basically it means this.

if all waffle houses are closed then conditions are really, really bad but if the waffle houses are open, it is not quite the catastrophe that we thought. how is that for an indicator? we're quoting this because, that gentleman, pat warner, is waffle house's director of external affairs. pat, as i understand it, you've got, is it 28 waffle houses in the houston area, only three are closed, that accurate, sir? >> i have updated information for you, stuart. eight of the 32 are closed but we're expecting four of those to be back open today. we have four restaurants where we have access and water issues we can't open today. we expect to have only four closed today. stuart: do you have some people actually living, and staff living in a waffle house to keep the waffles going? is that what you're doing? >> no. we don't do that. we evacuate. safety is number one for us.

we get our folks out of harm's way. we like to come in after the storm, assess the damage and see what resources we need to get restaurants open. nobody stays in a waffle house during a storm. stuart: how would you characterize the houston situation right now. >> right now it is all about access. it is hard to get around from houston. what we find our teams, it is taking a time to find the right route to get to the restaurants. that is the same with the associates. it is about road closures and flooding right now. we're hoping as it subsides it will be easier for us to get around. stuart: you have eight closed in the houston area and they were closed because they were flooded and or because you couldn't get the staff in and out, that's accurate? >> correct. mainly the access issues we're facing right now. stuart: you say you have four that might be reopening? >> correct. we think we can probably get to those today.

they did not have any water issues. it was more access getting folks to those restaurants. we're able to check in on the restaurants remotely and those restaurants have power, they're in good shape. just getting people to them right now. stuart: what is the morale of your staff? are they gung-ho to stay in place to serve the people? >> yeah, we have a lot of great associates in houston. we have stories from people coming in to take care of their customers. we're bringing in folks outside of the market to help the local restaurant operators. we have two jump teams on the ground now. our ceo is going in today with more restaurant operators to help out. we like to throw a lot of resources at a problem, take care of it from that standpoint. we have a lot of outside resources in there to help the local restaurant operators because they need to focus on their associates, family, things like that. stuart: you have to get your priorities right. pat warner, i'm not making light of harvey with this waffle house indicator. we thank you very much for joining us this morning with good information.

thank you, sir. appreciate it. >> thanks, stuart. stuart: president trump is in the air right now. he is headed for texas. i believe he goes first to austin and will helicopter down to corpus christie. it's a moment that could define his presidency. we're clearly on the story. back in a moment. rethink what's possible. rethink your allergy pills. flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪ i'm vern, the orange money retirement rabbit, from voya. i'm the money you save for retirement. who's he? he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya.

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you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. stuart: down 63 points, 21,745. now this, hillary clinton hitting the road to promote her new book about the election. tickets to her speaking engagements, some, some of those tickets cost up to $1200. katie pavlich couldn't resist. she had to stick around for this one. >> i have the d.c. date on my calendar, i don't have $1200 to spend. stuart: get a personal audience with hillary?

>> everyone wants a person until audience with wonderfully warm and human hillary clinton. i'm sure that would be the most amazing experience. stuart: sar the chasm is a -- carcass i am -- sarcasm is low f wit, katie pavlich. >> she is going to wisconsin and michigan, making money on the book titled, "what happened." democrats made it clear they don't want her hanging around. they shy open and let her guard down. stuart: have democrats made it clear, please go away? they have been silent, rather than saying -- chuck schumer has been pretty clear about it. liz: al franken. >> al franken. stuart: what did he say? >> bernie sanders is clear about it. faction of the democrat party

going towards the sanders camp, not the schumer camp. they have been very clear. stuart: characterize the democratic party as it stands. i think they're shifting gradually to the left. liz: gradually? >> gradually? stuart: rapidly. i think bernie sanders is defacto leader of democratic party. >> they're calling on barack obama to come back, barack obama fits more into the leftist side of political spectrum than hillary clinton. liz: it's a disaster. >> it is. new deal, better deal for america, doesn't mean anything. liz: very memorable. >> bringing a better deal for everyone. stuart: katie pavlich is so glad she stuck around. >> see you soon. stuart: thank you, katie. coming up more than 40 inches of rain has been dumped over parts of southeast texas. more to come. we'll take you our reporters waist-deep in rising water. we'll take you there. one state senator says the state

deserved it because the state voted for president trump. i am not making this up. we'll deal with it next.

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to protect your identity, new medicare cards without social security numbers will be mailed next year. visit medicare.gov/fraud stay sharp people! stuart: we opened up for business this morning we thought we would go down big time. we did briefly. now we're down only 41 points. maybe some bargain basement buying in there. who knows. we're down just 40. big technology names all down except for apple which is at 161 this morning. amazon $945 a share, over $100 below its all-time high. i want to get latest on tropical storm harvey. for that we go to janice dean, meteorologist extraordinary. where is it going, janice? >> stuart, we're getting unofficial amounts of 48 inches,

which would make it the wettest tropical storm on record for the state of houston. we'll bring you numbers as we get them. we don't have any warnings. we have heavy rain east of houston, moving towards louisiana, new orleans, mississippi, alabama, even the florida panhandle will get potential for heavy rain in a short period of time. again the low, harvey, is offshore. as long as the storm is south of houston we'll see a potential for heavy rainfall. as we get into tomorrow and thursday, things start to move eastward. friday it gets picked up by a cold front and a trough. then it will be out of the gulf coast, we hope. but there is the latest track. we're still dealing with a tropical storm here, stuart. so tropical storm warnings for houston through louisiana and mississippi, and storm will continue to unfortunately dump potential for anywhere six to eight inches of rainfall on top of the houston area, then across towards louisiana, up into

western louisiana as well where we could see upwards of a foot. louisiana is also a big story, we're getting flash flooding. but houston is a catastrophe. stuart: janice, i want to take a moment to thank you for all that you have done for us and our viewers. last thursday at 11:30 eastern time in the morning you came on our air and alerts us to this threat and you put up a map on the screen saying 25 inches of rain was possible. we could hardly believe it but you were right. and you have gone on to predict extraordinary rainfall totals and you have been right yet again. now you're correctly predict the track of the storm right yet again. thank you, janice. that is a great service you have done to all of news this is one storm i wish we weren't right about. stuart: of course, of course. thank you, janice. much appreciate it. okay. you heard janice it, will get worse before it gets better. i want to go to brian babin,

texas representative, in the texas 36th congressional district, just outside of houston, congressman welcome to the program, glad to see you, sir. this is described, as a biblical flood. you're right on edge of it, you're part of it. what do you need in your district that you don't have now? >> we're not on the edge anymore, stuart. we are, it is centered over us. it is, i go from houston to louisiana and up the coast about 100 miles. we have nine counties over here and it is of biblical proportions, it truly is. i have been born and raised in this part of the country. i have never seen a storm like this before and i have been you through lloyds of -- lots of floods and hurricanes. my hats off to first-responders and local leaders, and the governor and the president as

well but i would say this, the worst of times can bring out the best in people and we're seeing that all over this state, and folks coming in from out-of-state, i want to especially thank our neighbors to the east in louisiana, my colleague and friend, representative garrett graves who represents baton rouge, he has been through many of these things before, he managed to send us from louisiana, literally hundreds of boats and trucks and teams that we desperately need. this very morning we have shelters that have hundreds of people in them and no way to get supplies other than by boat or air. we're working desperately. stuart: congressman, when we see the damage here, we're just getting to grips with it, we're told that the area underwater is about the size of lake michigan,

a gigantic new american lake and it is right around near you, how long -- we have to be talking in terms of years, don't we, to fully recover? >> yes, sir, i would say that for sure. the thing here, texas is a big state. this was a category 4 that blew in, did a lot of terrible wind damage, just sat on us and still continuing to sit on us. as the, as your meteorologist just said it, will be with us a couple more days at least. the problem is, the huge geographic call area, plus the enormous population centers that we have here in houston. i represent part of houston. then i've got a big rural district as well and it is all over. and, it is truly a biblical proportions, and i would just say that, you know, we also have down in that houston area

probably, i know we have more petrochemical refining facilities in the area than any other district in the country. and we have had suspended operations by these refineries. stuart: extraordinary situation. >> it will be a problem for the country as well. stuart: congressman, brian babin, i'm afraid i do have to run but our very best wishes to you and your constituents. you have the thoughts and prayers of all of us, that is a fact. >> yes, sir. stuart: thank you, i want to bring in brian kilmeade, brian. the president is on his way to texas. he goes to austin first and choppers over to corpus christie. would you grade please, the response to harvey so far. >> it has been extremely strong for the most part. you want to be engaged, don't want to be in the way and in constant contact with the governor he has. the president has in his quiver he had no idea, the idea we have

to take responsibility for ourselves and help our neighbors. they are helping the entire situation. historic devastating storm but a community and a state that is taking action for others on their own behalf. i want to factor something else in on this. what happens next after you try to get 30,000 people who are in shelters. 17,000 in shelters right now. it will be up to the president to provide the resources, fema experts on the scene, red cross work, families living in gyms and convention centers for maybe weeks. then they have to, they have to be frustrated and anxiety-ridden. somehow he has to let them know, you're in communication, path to normally as well as getting insurers down there. the hard evident part could be straight ahead. stuart: he will go back to houston, when the rain stops, when some relief has occurred he goes back. he may go back several times to show he is in charge. he is on top of it. he is handling it.

he is the point guy for federal help that will be spread around all over. you would give him an a so far? >> i would. i was stunned "politico" talking about a lead story about the president's unprecedented rhetoric. when they come to the storm, doesn't like superlatives he is using. stuart: pathetic. pathetic. >> shows he cares and wants to be on the ground hoping they don't like his word. stuart: they mocked him. i don't know whether it was "politico," they mocked him because he was marveling at the storm. that is outrageous thing to say about our president at a time like this. i have one more, a professor is apologizing for suggesting that texans deserved what they got from heart say because texas supported president trump. this is the original tweet. i don't believe in instant carpal marks this kind of feels like it for texas. hopefully will help them realize the gop doesn't care about them. those who voted for him, trump,

deserved it as well. euro action brian. >> tampa is conservative community and university of tampa has a soccer team and. the school is not condemning him. took it down and apologized. this is so inappropriate. i know everybody at home, even democrats watching me right now understand this is inappropriate. i will factor something else in. dear, mr. professor. florida, put donald trump in office. they had more to do with his success of electorally than texas. texas was a lay up. florida was very much in doubt. so maybe you should talk to the people of florida if you're that upset. maybe not the people of texas. and so far maybe the people of texas don't agree with the liberal professor in tampa. maybe they're happy with the president so far. maybe they see a lot of obstacles in his way for people that want to see him not be successful. therefore, i really wonder how many people will feel good

sitting in that professor's classroom this year, especially if they expose their political views which are clearly different than is. stuart: that was very restrained there, kilmeade. i was expecting a explosion and i didn't get it. what is the matter with you? >> trying to reveal maturity not often on display on your show. trying to bring a degree of class and contemplation which has been lacking in my previous appearances. how is it going? stuart: we have elizabeth macdonald for that. >> i thought she called in sick? i had no idea. sorry. stuart: the headline brian kilmeade meditates. i don't believe a word of it. kilmeade, i think you're all right. i do hope you can come back next week to appear on this dynamite show one more time. >> as long as you keep paying me, no problem. stuart: under the table. brian, good luck to you. do you remember this? we brought you the story of jeremiah johnson, father of five including those three lovely triplets right there. he was evacuated. today they're safe and sound.

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♪ ashley: president trump issuing a statement this morning on north korea saying all options are on the table in response to its missile launch. last hour we spoke with ryan singh key, the interior secretary, if this means war -- zinke. >> this is international effort, it has to be. certainly territories, united

states citizens are at risk, we need to take action and the president is doing it. stuart: are we close to war, mr. secretary? are we close to war? >> i believe continued aggression, i don't think you can ignore it. certainly when you have ballistic missiles that are capable and launching, capable of striking our territories, u.s. citizens, that is a significant concern. you know i talked to the chief of staff of the army. this is a few months ago. the message has not changed. his major concern is not afghanistan. it is not the middle east. it remains north korea.

stuart: look at that, we're only down 11 points. 1 hour, 14 minutes in the trading session all you got. we were down 130. now we're coming back. back to harvey. yesterday we talked to a father of five who was evacuated during our show with his wife and children. it was during our show the evacuation took place. area -- jeremiah johnson is back with us by phone. tell us about your journey. how did you get out of your house, where did you go? >> all things considered, stuart, i can't thank you enough for your prayers and the time we had yesterday. we had a circuitous rout out of fort bend county. we were in houston's second most poplous county, now under

mandatory evacuation. as i sit here in our hotel room, stuart, i'm watching brazos river right. they predict it will be 59 feet by august 31st. last night, audrey and i, my wife, we're looking at inundation map that the county is sending out that covers almost 50% of the county. it was apocalyptic to answer your question. i had to be, the evacuation route were not actually evacuation routes. there was little communication. i had to drive the opposite direction on the interstate just to leave town. then finally on our sixth different evac route we were able to get to 59 highway west, stuart, and get out of town that way. it took 10 hours to get to dallas. stuart: jeremiah, that would be a absolute nightmare journey with a car full of your children, including those lovely triplets. now you're in a hotel. you face the prospect of staying in that hotel for a long period of time. any idea how long it will be

before you can possibly get back to your home? >> well that's the thing. stuart, we do not know. they're actually telling us, i'm getting all my news over twitter in fort bend county. we can not return that the county officials say it is safe. even if the rain stopped, the river levels are rising. so that is why both our family and thousands of others still need prayers. we do not know. we're in a holding pattern. we left with our pajamas on, stuart. for the first time since college i wore my pajamas all day yesterday. we left with nothing. at any rate, this is our crucial. i mean, stuart, why i appreciate your program so much, you teach people financially how to be ready for their crucialable. for us houstonians, this is our crucialable. for all the viewers, your day of diversity is coming, you better be preparedded for it. stuart: tell us how you and your wife are coping with those young

children? >> we're so thankful to god for our church, houston first baptist. we're thankful for support from believers. since i was on the program yesterday, thousands of people reached out to us all over the country offering their home. we're seeing amazing acts of heroism and love from first-responders. just even friends here in the dallas area, stuart, for running, my friend here curtis brought us diapers from target. we had no diapers we realized we left, not a good thing with triplets. we're coping by the love of friends. honestly, stuart, your friendship on the program is great encouragement. thank you. stuart: i think you're part of what i would call a express shun network. i think -- christian network. this time of deep trouble, christians are working with each other and i think you're a product of that network, am i right? >> you're absolutely right. the world at its worst needs the church at its best. at our church, we taken on the motto, love first.

just amazing the love, with no prerequisite. and we're feeling that. and, you know, yesterday there were a lot of tears on that 10 hour drive. we kept coming back this is our trial. we're not alone. god's with us. stuart: will you tell us one more time what you might need. i know our viewers will be praying for you. what do you need? we can generate what you need we'll do it. tell us. >> absolutely. of course pray. i would encourage people to give. there are relief fund. please check those out, validity of those. volunteer, if you can come to houston and volunteer and help first-responders. for example i'm part of the southern baptist convention network. they're serving hundreds of thousands of meals that are on the way. love, find ways to love on people. here in dallas we're, right here in our hotel, stuart, we have other people from houston and just friend willing to inconvenience themselves to find

someone who is hurting to make those grocery runs. to be hands and feet as we say of jesus is extremely helpful during this time. i would ask for that continued support. i appreciate your program, just being able to raise the flag on this needed issue. these are human stories. i'm a real person. i have five children. it was apocalyptic yesterday. stuart: jeremiah johnson, great pleasure to have you on the program. thanks for watching. thanks for being with us. we'll be back to you with diapers if you need them. thank you very much indeed, sir. very much obliged. >> thank you, stuart. stuart: we head to texas momentarily where our reporters are waist deep in water. we'll take you right there in just a moment. ime to rethink what's possible. rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances

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erez voir dams are overflowing. reservoirs. they have been watching it all night. that reservoir behind me, you're looking at is the addicks reservoir. it is 108 feet high. if it over fills, it will cause flooding that will last days, perhaps weeks in this area. some 3,000 homes in this area are under threat. i will take you just to my left. you can see already these homes are flooded. we saw a couple leaving this street here with bags of belongings, clutching their belongings, getting out of here. one wonders if they wanted, we didn't get a chance to talk with them, we went on other side, i wonder if they would have like ad little more notice this was coming. we've seen seen scores and scores of emergency officials coming in, convoy of buses of people being evacuated this situation since we've been here this, is not scientific, we've

been sort of watching it, picking a marker on the fence it, seems to have risen about two inches. now just, a quick recap, i know we talked a little bit about this before, but the system of reservoirs in, and bayous, the buffalo bayous, and others is intended to get water out of the city on the southwest side, down to the houston ship channel but as you can see now, yesterday they tried controlled releases with army corps of engineers. now they have uncontrolled release. we see helicopters up in the sky as well, presumably search-and-rescue crews. stuart? stuart: griff jenkins as usual, in the middle of it, thank you very much indeed. in a moment we'll try to outline how bad this storm is. we keep using the expression of biblical proportions. that is accurate. we'll tell you all about it in just a moment.

media and a nuclear armed north korea and now a flood of biblical proportions, once again, the president of the

united states who has called upon to lead america and lead the world through a time of deepening crisis. he needs our support. the third hour of varney & company is about to begin. ♪ ♪ ♪ stuart: back to the central of the flood, jeff flock near highway under water, jeff, give the latest, please. jeff: westheimer parkway. this is a major road that runs from here to katie, texas, a thriving metropolis of its own. the enormity of this water, you know, we talked earlier in the program about it being lake

michigan equivalency, this gives you indication of it. i heard you say something about something that you have never seen before, i am going to show you something that you have never seen before. this is what's coming out on the ground. can you see what that is? those are fire ants. that's one nest. this is incredible stuff. fire ants, you know, it may seem crazy, this is what's coming up out of the ground, spiders, snakes, ants, crazy stuff. stuart: wow. jeff, i think you've made your point. jeff flock, again, right in the middle of it, thank you, jeff, we will be back to you shortly. good stuff. jeff: sure. stuart: we are a financial program and i am going to show you fallout not from harvey but from the missile launched by north korea over japan. we went down 130 points at the beginning of the trading session but now we are only down 11.

there has been some comeback for the stock market. joining us now new york times best-selling author peter kiernan, peter to you first, is this the start of the long-expected decline, not necessarily a sharp decline but the long-expected decline of the stock market, what say you, peter? >> no, this is not the beginning of a decline. a double dose of unexpected activity first with korea and korea has had a passion for kind of crossing our bow with shots and bringing market down. a few days later we recovered. what's going on in houston, totally different. disruption to the marketplace but the market is much better evaluating how a country or city rebuilds after hurricane than how they evaluate during a hurricane. first action so to pull back and retreat. that's what's going on. stuart: it's fascinating, only down 13 points. >> we are going to be fine.

we are down double this amount, it's coming back. i think the resiliency through the market. stuart: scott, what say you, is this the start of long awaited, long-expected decline? i think we lost audio. i don't think he heard me. ly get back to scott in just a moment. >> i'm sure he agrees with me. [laughter] stuart: he's an agreeable kind of guy. we will restore audio and we will ask him that same question again. let's talk harvey, for a second, peter. enormous amount of money is going to be punt into the houston area, into louisiana as well, tens of billions of dollars and it's going to go fairly quickly. could it be that that's stimulus for the overall economy? >> if we can look past human tragedy, which is almost impossible, the first storm we've had of that magnitude when the united states has been a

major producer and exporter of oil. the first one of these we've had when we have been contributor to opec at all and so what's going on here, this is the fifth largest economy in the united states and it's dead stop for days and it could be a week, i've looked at some of the refineries that line the coast, many of them have pumps, if those pumps get submerged, these refineries which are really the orchestrator of all of this export activity will be out for 30 days or more. stuart: good lord. i believe we restored scott to audio there in london. scott, i will repeat my question. a lot of our viewers are wondering, is this the start of a decline for the stock market, i noticed by the way, that we are now up 3 points. that happened during peter kiernan commentary saying, relax, it's okay, is this the start of something bigger, something, gradual yet decline for the stock market? >> you know what, stuart, we

talk about this all of the time in the office. there's just too many people out there looking for a decline in the stock market and that's why we've got all that liquidity, most of the european markets are up a quarter to three quarters of a percent and that bled out to 1 to 2% lower and there was nervousness in the air, crazy kim and hurricane harvey on the coast, but leave it to relentless u.s., liquidity and the can-do factor and boy, oh boy, things have come to the rescue for many different reasons, maybe not all the right reasons but it's good to see that the investors are still taking, you know, heat and buying in the u.s. stuart:ly bring this to everybody's attention. breaking news now, a tweet from brazoria county, texas. it's a warning, quote, levee at colombia lake breach, get out now.

that's a county south of houston, that's popping to us as we speak, that's just gone out, get out now. on the stock market, we have turned around. when we first opened for business 9:30, we were down 137 points that was the low. we have turned that around completely. now we are up 4, 5 points, 21,811. can you think of anything that could account for the turn-around than what you've just told us? >> we don't know the full downside, what's the real exposure in the harvey situation. it is certainly going to run to tens of billions of dollars but bright light still shining through, colonial still pumping gas and diesel in the northeast, very important for the stability of our economy. some things are still hanging in there despite all the bad news. stuart: what do you have, ashley?

ashley: second highest levels since late 2000, in 17 years. stuart: that'll help. now we are up 8 points. that's, ash. i want to get back to scott. wholesale gas prices, they've leveled off after they spiked yesterday. what do you make of this? i'm trying to get my handle on this, refinery situation but i can't because a lot of -- they can't get into the refineries to check what kind of damage has been done and what will it take to repair them, those that have closed already. it's an ill-defined situation, scott, can you throw some light on it for it? >> how long the piece of string, i will say this, there will be two outcomes here, short-term outcome which is gas shortages, refineries going down, we don't know the extent of that and one thing for sure, we will get through that. i think it's interesting that we haven't seen a ton of hoarding

and a 20-gallon tank, 20 more cents a gallon, only 5 bucks more per week. things have been very calm. muted effect on gdp. we will see how relentless the u.s. economy will be. stuart: peter, do you want it button it up, you held the hands of our viewers that may be thinking of selling, what's your last word on this? >> if you look at dependent countries, there's 45 of them, all 45 have growth economies this year, all 45 are growing, 33 of them are growing more than last year, the world is growing economically and that's one of the underpinning to this. we have concern obviously in texas, motiva, refiners are

still open. ahead of the hurricane to work through and try to keep refineries up and running. all kinds of heros in texas and some in refining community, don't give up on texas. stuart: i would never, ever, ever and the dow is now up 12 points. got it. >> there we go. stuart: nice story out of the madness in houston. i think we have a picture. this is baby harvey rodríguez born during the storm at corpus christi medical center. there's young harvey along with three other babies, the baby named him obviously after the storm, harvey rodríguez, welcome to america, young man. harvey is getting ready to hit again not only texas but louisiana, next we have a senator who represents louisiana. plus, our cameras were on the scene of the aftermath of some looting at a gas station. we will ask the houston police

chief about catching and prosecuting looters, plus hillary borne is on the scene where rescues are on their way, we will take you right there in just a moment

stuart: hillary, are you on the scene of a rescue as we speak, tell me, please? >> stuart, this is kind of a rescue hub, this is where both are going out and coming back full of people, you can see actually right there, that's where the water levels up, it's overwaste deep and going out in boats and rescuing people, going out, they had had two dogs with them, bird in cage, luggage and items full of trash bags, now,

the harris county sheriff tweeted moments ago if you see a boat in your neighborhood, get on it because we don't know if we'll be able to come back for you, that's the level of urgency that we are at here in porter, texas because the water levels continue to rise and it's getting difficult for crews to navigate neighborhoods, yesterday we saw multiple people paddling through street after street looking for people, the sheriff also said that when you call call call 9-1-1 it may be difficult to find location, raise a white sheet or a towel prominently on your roof so rescue teams in the boats can find and locate you. they've had over 7,000 rescues, not evacuations, 7,000 rescues by the u.s. coast guard alone and houston police. we talked with multiple people that volunteered time to come down and the interaction that is

we are seeing a really emotional. one man said a woman asked to carry son's ashes. some woke up this morning to flood waters and now found themselves trapped. that's how fast and hard the rain is falling, there's been over a 15 trillion-dollar gallons of water dumping in this area of texas and the national weather service in houston says that at least two or three trillion more gallons are on the way. so the rain is not letting up and people are having a hard time getting out, stuart. stuart: hillary vaughn. it's turning now towards louisiana. joining us on the phone louisiana republican senator john kennedy. you must be worried about a katrina two, are you not? >> well, i am, stuart, i'm over

in a little town outside of lafayette in southwest louisiana, we are taking a lot of rain but nothing like houston. i'm here in what's called a command center of the the jajin navy. they have an app where they can talk to each other. i'm so proud of these guys helping our neighbors and they are doing without any government assistance whatsoever. stuart: senator -- >> started sending people over on friday. stuart: you're confirming what we've heard a lot about and that is that this catastrophe, adversity is actually brought out the best in people. they are helping each other and the cajin navy i suspect is a classic example on how to get out there and help fellow human beings, can i ask you this, sir,

what does louisiana need more than anything else? >> honestly right now what we need is just prayer. we are going to take what comes, we are -- we have been through this before, unfortunately and fortunately we have a lot of experience, we are ready, we had a lot of rain, we had to do evacuations in the southwest part of the state yesterday, i'm worried about new orleans because of the pumps down there. but we will get through this. i'm more worried about texas. i mean, this is just -- it is breath-taking the amount of suffering, you know, i think i've told you before, stuart, if i make it to heaven the first question is why bad things happen to good people because i don't understand, but we are going to deal with it. stuart: yes, you, are, senator, we wish you well and congratulations to the cajun navy. >> they are the best. stuart: republican in louisiana, thanks for joining us, sir, become to -- back to you a

little bit later. look at that. that's the pipeline, what do we have on this? >> the mississippi river of fuel, this is how important the pipeline is, the biggest in the country. they're now saying it is flooding and having trouble putting fuel inside that pipeline due to the pumps being flooded, so there's concerned that there are several weeks out of seeing the hit of gas prices as they struggle to get the pipeline up and there's fear that is gas prices could go up by holiday shopping christmas. stuart: in the mid-atlantic corridor. >> it's going to affect refineries and pipeline, that's trouble. stuart: quick check on apple, just hitting an all-time high, stock price, by the way, 162, they unveil the iphone september the 12th, we will be back ♪

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stuart: where is harvey headed? the lady who will tell us is janice dean standing by to tell us. janice: we just got word that rain southeast of houston has exceeded the 49.32-inches as of 11:00 a.m. eastern time. that is breaking the tropical cyclone record. there's emilia and we have surpassed that. we are getting reports that we are upwards of 52-inches east of the houston area in league city. so there's no way to explain this except that historic, epic, devastating, devastating. stuart: incomprehensible, janice. janice: it is. stuart: we brought a yardstick to the set and we were doing this, it's unimaginable.

50-odd inches is out -- i simply can't wrap my arms around it. janice: we will be reading about it in history books and unfortunately we are hearing levees breaching and waters spilling over and i am fearful, i'm so fearful, there's -- i mean, the forecast is dire, that's all i can say. i can show you where the rain is but when we were talking about 52-inches of rain, that's all i need to say. stuart: thank you for the update, extraordinary deal. just extraordinary. thank you, janice. now, jeff flock obtained this video during our coverage yesterday looting at a gas station, up next, we will bring you the houston police chief. see a breakdown of costs.

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stuart: coming up at 11:30 eastern time. virtually no change now. we are up 1 point. different story when the market opened two hours ago, we dropped 130 points. we have come back. how about the s&p 500?

virtually dead flat, yes, it is, down .17%. as for nasdaq, similar story, it is down .03%. virtually unchanged. however, we do have the safe haven investment of gold going up in value, up 8 bucks an ounce, 13.23 is the price. look at the wholesale price of gas, we've got a spike on our hands, 4-cent gain at a 1.75, 2%. why is this happening? because there's now trouble with the colonial pipeline which moves gasoline from houston up to mid-atlantic states, trouble in the typeline means trouble for drivers. up she goes. now this, more than half of the properties in the flood zone could be uninsured. peter mauricy, losses of this

size, flatout loss. there's no way to describe it anything but a flatout loss which i would take as a negative for the economy, what say you? >> well, it is absolutely a loss, it doesn't matter whether it's insured or not, the wealth of the nation is down. in terms of rebuilding, in terms of income flow that comes out of employing more people, that will be impeded by the lack of insurance, people won't have the money to rebuild and even if they do, if their neighbors they will think about something else, you want a new house next to two lots that are in rubble. stuart: i would imagine, though, now president trump has promised a lot of money very quickly, if he gets it and spent quickly and it probably would be, i would think that would be stimulative for local economy and national economy if there's enough money involved. >> the second quarter of next year, the third quarter is wiped out by this flood and then we

have winter, it's hard to get going. also something of this size and scale, a lot of chattered discussion, planning and all the rest about how to build up better next time because the zoning is clearly very inadequate in this area. as a consequence it'll probably be delayed very much as we saw with the heller hurricane in new york, man hat -- manhattan and so far. stuart: long-term, what are the prospects for houston? >> really good because natural point for a port, the real trick here is to take this like a san francisco earthquake event, what have we learned and start to build smarter, you know, while this may have been biblical level flood, it's not that house own would have withstood something less. a lot of the development has not been very smart. too much asphalt down there. the ground can't absorb any water as an example.

stuart: okay, peter, we hear the message. houston has taken a hit and the hit will stay with it. peter, thanks for joining us, appreciate it. i have a lot to go at, look at this, larry, national syndicate radio talk show host, grade his performance thus far, how is he doing? >> so far so good and believe me even though many officials in texas are republicans and therefore you would think they would be more reluctant to criticized from donald trump, as we learned from katrina, people in the same party have no problem blasting the president if they feel he's not doing a good job, so far so good, dhs, mayor of houston, lieutenant governor have all praised donald trump so i suspect that so far so good. stuart: now the president wants a bipartisan aid deal. he's pushing congress to move very, very quickly, get it done,

get the money out there, do you think he can do that? do you think he can get a bipartisan agreement to ante up the money? >> if you can't get a deal on the tragedy as you pointed out biblical proportions i don't know when you can get a bipartisan deal. congress loves spending money on infrastructure. donald trump wanted to spend a trillion dollars, chuck schumer was okay with that, i would be very surprised if there's any problem whatsoever in getting bipartisan support to help rebuild the area affected by hurricane harvey, i would be shocked. stuart: peter stale with -- still with us, does this spread out the legislative timetable if we now have to have a budget done and debt ceiling done and get more money for harvey victims, can we do things like that, stretching that further into the future? >> the debt keel asking going to get lifted more likely because of this so they can focus on the budget. the logical thing would be to

attach funding for harvey to the budget and i think it would not be in this continuing resolution, 12 days is too short. it's likely that we will have a continuing resolution. this might make it a short continuing resolution, 30 days, 60 days with the notion that harvey funding would be attached to that. you simply cannot do adequate job of funding this disaster until you've seen what's there and we haven't. stuart: okay, fair point. back to you. larry elder, you're in california, talk show based in california, california is the great rival or texas is the great rival to california, there's no love cost between the two states. what are your listeners telling you in california about their attitude towards houston, texas? >> californians don't his -- dislike texans. i don't sense any hostility between the two states at all.

look, texas is taking many of our companies, many people of california are moving to texas because of the environmentally friendly atmosphere, the business conducive atmosphere, that's on california to change our policies so that does not happen, i'm not mad at texas for stealing california businesses and californians, i'm not mat add them at all. stuart: rocked back on our heels when we see the magnitude of what's going on in houston. we keep using the expression, a biblical, biblical event. i think that's leg it, larry. >> i will tell you something, too, story, sooner or later so-called big one in california where the damage is going to make what's going on in texas and in louisiana pail by comparison, so californians are aware that we are built in earthquake-prone area, the other

49 states will probably step up just as we have stepped up when other states had disasters. stuart: how does the overall economy stack up when we are hit but a catastrophe of this magnitude? >> we recover well over two quarters. i would expect the same thing here too. 10% of the u.s. supply is going to be made by other refin ris, more refined by gas and europe, a little bit of a hit, overall gdp will be bigger in second quarter next year, deficit spending. stuart: peter, a lot of our viewers joined us this morning thinking this was the beginning of a downside move. it's turned around. tell us what -- what is the underpinning of the stock market at this level at this time? >> very good profits going forward.

price earnings ratio likely supportable at higher level because the interest rate in capital markets is lower over the long term in the last 20 years. my feeling is the market is sound and becoming more mature. like, for example, the situation in korea, it only reacted for a few hours. this morning it reacted for a few hours. same thing happened overnight in europe. the market is learning to that i can these things in stride. in reality it's a broad resilient economy that's capable of taking a hit. texas, it's going to be tough for them but overall we can help them, we are going to rebuild, we will stay with them as long as it takes, you watch this, this is going to be donald trump's root-off giuliani hour. [laughter] >> this is how new yorkers take these things.

>> that's how america takes these things, peter. the market is a voting machine, in the long-run the market is a weighing machine. >> right. >> donald trump ain't going anywhere for the next three and a half years and the market understands that. calm down, this is america, we rebuild. stuart: we might get a tax cut. peter and larry, both of you, thank you very much, indeed. good stuff, appreciate it. we were going to have the houston police chief on this program at this hour, he just let us know that he's unable to join us, the chief is with the mayor, the mayor is supposed to be holding a news conference any minute, that's why the police chief cannot join us at this point. now, dow component united technologies reported, $20 billion. both stocks up. that would be a huge deal, would it not? check that big board. we are now up 3 points coming

back entirely from 130-point loss. karl rove is with us in a moment. he's in austin where the president will land in 20 minutes, we will all be back

nicole: stocks have turned mix and the dow turned positive right now. the dow up. pressure been on the market overall after another missile launch in north korea.

four missiles, four days and this one went right over japan, spooked the markets in the early going and investors fled to safe haven of gold and bonds. let's take a look now at how much gallons of water, 15 trillion gallons roughly through yesterday afternoon. it's looking like it'll be three times of katrina, of course, katrina brought destruction via storm, this is a lot of water. the major insurance down for the whole week, travelers has been weighing on the dow hello, this is adt,

is everything ok? i could hear crackling in the walls, and my mind went totally blank. all i remember saying was, "my boyfriend's beating me" and she took it from there. when a fire is going on, you're running around, you're not thinking clearly, so they called the fire department for us. and all of this occurred in four minutes or less. within five minutes. i am absolutely grateful we all made it out safely. it's kind of one of those things you can't even... you cant even thank somebody. people you don't know actually care about you.

to protect what you love, call 1-800-adt-cares stuart: griff jenkins on the ground in houston, a reservoir there is spilling over for the first time ever, griff jenkins, what is the significance of that? >> the significance is that -- you may hear emergency crews going by. the significance is the situation here by the reservoir and dams has gotten to be critical. you know, stuart, in just the last couple of hours at least three maybe four inches of water have risen and that's caused because for the first time in history the reservoirs here both of them addicks, behind me and

barker, they are spilling over. it's never happened before. this is an unprecedented -- unprecedented situation they are dealing with. they tried yesterday with army corps of engineers so control water flow out of here as it began to reach capacity, now, that failed, they've reached capacity and it is spilling over. you just look over here, it puts the neighborhood in the subdivisions in absolute flood situation. these people must get out because while the spillover is trickling, we did not have a levee break as reported 45 miles over here, it's spilling over and continue to spill over for days if not possibly at least the rest of this week and the water -- these homes you're looking at, are going to be completely consumed. we have seen boats, search and rescue going in and helicopters overhead. you know, this is the kind of problem after three days of being besieged by mother nature

that houston doesn't need and this their flood control system, dams and levees that feed to do bayous is now breached, this is going to be a problem, stuart. stuart: yes, it is, griff jenkins, thank you very much, indeed, griff. evacuations are underway in parts of houston. now i'm joined by someone who was rescued by canoed. john biro. from the moment you realized you had to get out to the point where you did get out on a canoe, go. >> thank you, woke up 6:00 in the morning on sunday and found half an inch of water in my house and within a few hours it was about 3 feet and then by lunchtime it was 5, 6 feet and the rescue services were completely overwhelmed, fortunately called a friend that

was able to get a canoe and came over and we loaded up the kids and two dogs, two cats and ourselves, took a few trips and went several hundred yards down the road and got out. >> well, jon, is the water still rising where you are now? >> well, we had a reprieve, the rain stopped, the water went down a few inches, of course, we haven't been able to go back inside the house but we could see that the water had receded a few inches but now i understand that it is back up to about where it was at the crest when we left the home. so we are hopeful that the rain is going to hopefully stop or not come down too hard and the worst is behind us but time will tell. stuart: jon, i want to thank you for coming on the show and telling us your story, tough story but we need today hear it. >> thank you.

stuart: evacuation by canoe, how about that? president trump is on his way to texas right now. he will visit corpus christi, land in austin, helicopter over to corpus christi, come on in, karl rove, all right, karl, i know that you're not exactly a trump fan but would you grade performance on harvey thus far? >> top of the game. look, the president has two responsibilities here, one is to set the right tone which he has done with very some well crafted remarks and by a visit that is very helpful. he's not going to go to the center of the action because that would be disruptive. he's going to go to corpus christi where electricity is coming back and 5 imps of rain, 130-miles-per-hour winds, but compare today what happened north of them, they are in pretty good shape. he's going to come to austin where he will go to emergency services center located north of the capital behind me on lamar

boulevard and the importance of this is, most people think that the president or somehow washington is in charge of disaster emergency relief, not true. under the is stafford act, the governor of the state where the incident is taking place, our governor here greg abbott has planned for this moment and has prepared for it and working with local officials and in this instance primarily the county executive, we call them county judges emmett and sill -- silvester turner. the administration has been very quick in responding to their requests and making certain that they have every resource necessary. stuart: the president did say, you will have what you need and you will have it fast and that's what he's going to deliver today, isn't it? >> yeah, absolutely.

look, it's -- this has been going on since moment one. you talk to people inside the administration in austin and they will say since the first moment, since the first moment everybody inside the administration has been saying, what do you need. we learned this in katrina. katrina affected four states and in three of those states, mississippi, barber and riley and jeb bush. louisiana had poor leadership, they could never decide what it needed and when it needed. everything went smoothly in mississippi, florida responding to terrible disaster in katrina, we had a both governor and mayor who were frankly not up to the task. stuart: can do efficient dynamic texas coming through, karl rove. >> absolutely. stuart: thank you. next up the congressman representing corpus christi will join us.

he voted no on relief for super storm sandy four years ago, president trump arriving in his district momentarily, stay right there, please

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the sad news from the houston chronical, a houston police officer drowned in his patrol car in the flood waters. the chronical says three department officials have confirmed this. the officer was a 30-year veteran of the force, driving to work sunday morning when he was trapped. again, this is according to the houston chronical. blake joins us now, republican, district that includes corpus christi, texas, the president will be arriving momentarily. congressman, what are you in need of most -- where are you now? >> right now corpus christi area is all right but some of our suburban are areas just outside, porter -- port aransas, port lavaca, need of water, basic needs, houses are everywhere you

look in places like rockport, houses are damaged beyond being inhabitable. complete businesses are leveled off the ground. and we are getting the release we need. we are actually doing pretty well, the government, the state, federal government, state government has coordinated in a way that i've not seen in the past. stuart: congressman, covering this news item we often see a spike in the news itself, development that really raises awareness. it suddenly hits you and tails off a little. this is not happening with this storm harvey, worse to worse to worse, it's still getting worse, is that the view from where you are? >> it is up in the northern part of the district that i represent closer to houston. i represent bay city in

matagorda, water moves downstream in downtown area and they're evacuating the city as we weak. stuart: that's extraordinary. congressman blake farenthold. i'm repeating a tweet from brazoria county in texas, levee at colombia lakes breached, get out now. we have a map for you. that's the notice itself. get out now. we have -- this is brazoria county, south of houston, texas, a levee is embankment, broken, breached, water flooding out. this is a desperate situation. the situation just getting worse, more varney after this.

. . . .

stuart: updates from the mayor and police chief. here we go. houston is seeking federal aid to shelter another 10,000 people. the police chief says they're still out there conducting rescues. don't give up on us, he says. 3500 rescued so far. my time's up. neil, it's yours. neil: stuart, thank you very much. following up on those developments. harvey setting a record of 49 inches southeast of houston that would be a record. evacuations underway south of houston. columbia lakes levy is breached. the houston dam is spilling over first time in history. the president himself will be in corpus christie to survey the damage thus far. jeff flock in houston. hey, jeff. reporter: two reservoirs, neil. i'm at the barker reservoir. farther down it's a little lower in terms of the size of the berm. so they're releasing water out