>> abby: have a great saturday everyone. >> north korea and the cost of natural disasters all giant worries yet the markets keep hitting new highs despite it all so is wall street telling main street we're strong enough to handle it all? hi, everybody i'm dagen mcdowell this is bulls & bears. the bulls & bears this week, gary b. smith, jonas ferris, a lock with lee carter and jessica tarlove. welcome to everybody. gary k, what is the smart money telling us? >> well first off when you have all kinds of suppose ed bad news and the market has the best week we've seen basically all year it really tells you everything you need to know and just by way of

example this week, apple's going to sell a trillion iphones when it comes out. here with the hurricanes disney opens up a couple days later the parks are already packed so business is business, we're back to business and the american people are going at it again and i think the markets reflecting it right now. >> dagen: and gary b., we had names like boeing, caterpillar, even dow dupont hitting all-time highs on friday. no fear there. >> well, i'm a little bit more t epid or conservative than gary k is. maybe being a more, maybe i was more in the storm than gary k. was i know he was in orlando but i think this was a sigh of relief rally. i mean, here in florida, frankly , it was horrible but it could have been worse. we're still getting over the tragedy in houston but even that could have been worse. any time north korea fires a missile, i think people give a

sigh of reloaf that it didn't hit japan and trigger world war 3. i think the fundamentals are here though. i mean gdp is strong although the hurricanes will hurt a little bit. median household income hit an all-time high, although even there we're just barely above inflation and adjusted where we were 15 years ago and housing prices are okay. they're pretty strong right now and then finally, my daughter got a job which says the econom- >> [laughter] >> dagen: [laughter] >> the economy is good. >> dagen: gary b., your celebration alone because of that will add at least one whole percentage point to our national economic growth. lee, investors telling us not to worry about everything that we've seen even in the last week >> yeah, i mean there's a lot of things that are going well right now. we're seeing earnings going really well, consumer confidence is increasing and i've agreed that whole collective sigh of relief that things could have

been worse and now we'll see spending on infrastructure that has to be done now people are doing better than we expected them to. i think they're pricing and now tax reform seems like they're getting their act together on that. my big concern is that what happens if something does happen with north korea? what happens if tax reform doesn't get done? what if grid lock continues to move forward? i'm optimistic because we're see ing republicans and democrats starting to have conversations and compromise but if it doesn't happen i'm afraid the market is going to soften. >> dagen: jonas, despite all of the concerns you have 45 countries, developed countries all growing this year simultaneously first time that's happened in a decade. >> yeah the economic news is good. i'm hoping gary's family hiring story isn't what they call a lagging economic condition. >> [laughter] >> dagen: [laughter] >> i will also say like look, i get it. you want to buy it and stay in the market through news crisis that get trumped up and scare investors out. historically that's worked in your favor historically behind stocks during problems with

north korea have been positive but that said everyone gets that and we don't get dips any more and you're at all times highs. not like there's a weakness and you should buy it but you can make the case that north korea is never going to be or at least in the near future hurt america but south korean stocks are doing well japanese stocks are doing well that seems too optimistic in my opinion so i think it's a measure of anything of overoptimism with the investor even though i'm not saying these hurricanes aren't manageable by our country and all these things aren't true. i just think that people are a little too it's all great and record high. i think it's a little bit of a sign of that. >> dagen: maybe it's investors particularly in this country are okay, satisfied, even assured by how the trump administration is handling all of these crisis, whether it's hurricanes or even dealing with north korea. >> yeah, well the polling actually indicates that's exact ly what's happening here. trump's personal approval rating is far below his ability to handle things like these crisis,

overwhelmingly the american public certainly republicans are pulling up that number, but some independence and even conservative democrats are pleased with the top talk approach to north korea, for instance and how he was in houston and handled florida as well. i do want to say a congratulation's to gary's daughter though, so we have that going for us and i love to see m arters out there and gainfully employed so congratulations. >> dagen: gary b., that does go to the point of what we've seen this past week the terror attacks, north korea again firing another missile and even these hurricanes. we are resilient nation and our economy is growing and none of these things will stop that from happening at this point and certainly aren't going to get in the way of 10% plus earnings growth so far this year. >> exactly. i want to come back to your point on the resiliency i think is a strong one and kind of jona s referred to it also a little bit in almost every major crisis, even after 9/11 the

economy did take a dip. obviously for a week but it sprung back. the united states seems to be able to weather these storms. now are we kicking the can down the road? all it takes is for an irma to go right through miami beach and shutdown the east coast. shutdown the electrical grid. all it takes is you no one nuke to actually hit japan and we're going to talk later about the debt. that's the other can, so i think always think the united states economy is strong. i guess in the back of my mind maybe like jonas, i'm always waiting for the big one but until then it hurts to be out of the market. >> dagen: but it doesn't pay, gary k., to be fearful in these markets. you're not getting paid much at all to own debt when you can get a dividend from microsoft that's almost the equivalent of owning

a 10 year treasury. >> well look, part of the equation is simple and i've been saying it for years. we do have the easiest monetary policy in the history of time with tons of printed money around the globe and negative interest rates in some places. that puts a floor under the market but it lets cost of capital for corporations be very very low and that way they're able to grow profits more and i think that's what the market is seeing also and by the way auto it do have to also talk about the optics of what we've been seeing over the last two weeks and that's average americans saving the lives of other americans and i really think that, you know it invokes some real strong patriotism and i do really believe markets do look at that a little bit and i think that's healthier too. >> can i actually add to that gary i think it's totally correct and we've spoken about this before in the wake of all of this but i'd add the "ices of heidi heitkamp talking to donald trump talking about his tax plan and other conservative democrats running for re-election when

trump won by double-digits 32 points also inspires confidence and the ability foromorrow reform to g done as lee pointed outo i it doesn't ppen i think it's a proem t on all cylinders betting on america is a good thing to be doing right now. >> dagen: lee i want to give you final word on this but when people see other people standing shoulder to shoulder and stranger helping stranger, that can't help but make people optimistic and hopeful. >> it makes people so hopeful and that's what i've been hearing as i've been talking to the american people over the last week and two weeks and since houston, people are really encouraged by seeing american spirit come alive but seeing everybody come together and even i've been hearing that people are appreciating the president was inviting pelosi and schumer to have dinner and people are having conversations and making compromises. i think american people are pleased to see that. >> dagen: thank you guys and gals. cavuto on business about 20 minutes from now neil what have you got? >> neil: president trump says the tax cuts are coming and they will pay for themselves. now he's just got to convince

some of his own party who ain't buying his math plus hurricane victims getting hollywood's help and a lecture. should they really be preaching to the people they're supposed to be helping? we'll see you at the bottom of the hour. >> dagen: oh, neil we can't wait for that thank you, sir but up here first our national debt topping $20 trillion as congress considers tapping more money for hurricane relief. is it finally time to reign in spending on federal agencies to free up money for emergencies like

.com. >> dagen: the bills keep piling up as victims of irma and march very are cleaning up and with congress expecting to help them out with billions of dollars, our debt just topped $20 trillion. that's why gary b. says it's time to reign in government spending so we can pay for the things that really matter. gary b.? >> exactly, dagen.

look, most people think of government spending as think of discretionary spending. what you see the government spend every day like the hurricane aid and things like that. that's not the problem. the problem is the entitlement spending. social security, obamacare medicaid medicare. that's 50% of our tax dollars go to those and the problem is they're on auto pilot. they just keep growing bigger and bigger. nobody wants to touch them in 10 years it's going to be 83% of our budget. that and interest payments on the debt. we won't be forget about national defense. that argument we won't be able to afford it. we won't be able to afford when people have tornadoes and floods and hurricanes sending them dollars because we'll be out of money. this is the problem this is what brought down greece and everyone laughed oh, we're not greece, you know we can afford these things. we can't and i'll tell you what the time, the clock is ticking and we probably have about five to 10 years to address the problem. >> dagen: lee will they get it

done down in d.c. and reign in that spending gary is talking about? >> i can only hope so and i look at a president whose going after really tough issues things that are not popular. he's gone after he's made statements about all kinds of things that are tough to have conversations about. daca for example, now we're having the debate. let's move things forward so i think we do need to look at entitlement spending and i don't think he's afraid to do it. as a look at what's coming forward at tax reform and other things that are happening we have to look at balanced budget because we need to be able to spend our money on things that are most important like what we have right in front of us right now. >> dagen: gary k. though because interest rates are so incredibly low and the u.s. can borrow at 2.2% a year over 10 years, these lawmakers are just acting like the bills are never going to come due. >> look, let me give you the big number. this year, 450 billion of our tax dollars is going down the toilet just to pay the interest on the debt that they've created throughout the years.

that would cover three or four harveys maybe and nobody does anything about it. the words "debt ceiling" roll off the tongue too easy and they actually take victory laps when the debt ceiling goes higher. they should be taking victory laps when it goes lower and there's a bottom line here. if we do not change the trajectory all heck is going to break loose in the markets one day. the last year of clinton we spent 1.8 trillion this year 4.1 trillion and in four years it's going to 5.1 trillion. every one of those dimes comes out of the economy's pocket and we will never ever reach our economic potential if this continues going skyward. >> dagen: and we're not hearing anything about this jess from the democrats your bro bernie sanders is talking about single payer for all while medicare which is single payer is going broke in 12 years. >> well bernie is not my bro. hillary is my gal though. no i think everyone here was disgusted before i was a support

er of the simpson plan. i think we need to reign in entitlement spending but i would public back and people are saying this is just democrats because president trump campaign ed on not cutting entitlements. he said to all his voters especially lower class said you paid into the system your whole life and you're going to be entitled and you'll get to keep it. now i'm not thrilled with the medicare for all push because i think it's unrealistic. i don't think it's smart politic s looking at what's happened to us in 2016 when we fractured and fell apart losing by less than 80,000 votes. it's an important conversation to have about whether healthcare is a right and how much it should cost. it's too expensive, but this is not just a democrat problem. it's a washington problem. >> dagen: can washington ever tackle this debt, jonas? >> no that's why we got to get back to the hurricane talk because look yes if we were in balanced budget or even had debt that was half it used to be, we could pay for these hundred billion dollar hurricanes all day long wouldn't be a big deal but that's not us any more to gary's point and we're not going

to go to having balanced budgets again so we have to have a hurricane plan because it's about-- >> dagen: why not? >> how many hundred billion dollar checks will you have before you're broke so what is the plan let's discuss it if people have moved from buffalo to boca, and there's hundreds of billions of dollars in assets, we could have five in the year by bad luck but the 1926 hurricane that we went bankrupt so we have to have a plan is it a sales tax, national sales tax, regional one what's the plan to pay for several of these in a year other than borrowing it until we can't borrow any more. >> verizon had the best idea this week. they're cutting 10 billion of spending going to every department saying you're starting from square zero and you're going to tell us why you need the money. we as a government should do the same. the two words accountability and transparency are no longer in government. i have no idea where the spending is going. that's got to change and you keep saying we can't do balanced budgets. oh, yes we can. we just need some adults in washington and by the way you're right. it is both parties, we couldn't

get there without both of them. >> dagen: takeaway their pacif iers and only give them back when they balance the budget. thanks guys and gals cashing in just over an hour now trish what do you have coming up? >> trish: hi dagen. kim jong-un's ledge ream launch ing more missiles and reducing america to "ash" is getting tougher online o our only hope to finally stop north korea plus how hillary clinton's book tour may back fire on her money making brand and the democrats brand. cashing in we'll see you at 11: 30. >> dagen: thank you, trish we'll be watching but up here first turns out free speech comes with a hefty price tag. one public college shelling out nearly $600,000 for security. now someone here says that it's time for liberal leaders to

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>> dagen: tensions flaring at uc berkeley again protest res out in force this week as conservative writer ben shapiro took to the stage to speak. the public university is spending about $600,000 on security over fears of more violence. lee you say it's time for liberal leaders to speak out? >> i absolutely do. i think that we hold different parties to different standards we're asking the leadership to condemn the alt right and leadership on the left should do the same thing for the alt left and that said there is freedom of speech of this country and freedom of expression so i'm glad people are exercising that right but also glad we have

people like ben shapiro willing to go to berkeley and speak to the people who disagree with him we'll listen to him. >> he actually wrote a piece talking about his experience last night where he talked about how many students who do disagree with him liberal students showed up and wanted to engage in responsible thoughtful discourse with him about his ideas and that's what everyone should be supporting. there have been very vocal supporters who sometimes i feel like the trade is the left a little bit but spot on here but all those people out there is not alt left. that's the people protest. >> dagen: bury g., but if these liberal leaders spoke up maybe berkeley would in have to spend $600,000 after seeing all that violence earlier this year. >> or maybe if you spent all 40,000 students at berkeley a bill for $20 to pay for the security, it wouldn't be any violence, [laughter] either. let the free market work that's the way to do it, but i don't think the leaders on any side democrat, republican, need to speak up. you've got to remember, these incidents if you will are normal

ly confining you to the coast, the deep blue areas and these liberal universities. by the way you never would read about something like this if shapiro had spoken at the never all academy for example, or west point of university of oklahoma so as lee said look it's free speech. no one likes the violence part, but i'm fine with everything else. >> dagen: jonas? gary most of those kids would pass those $20 bills on to their parents, i would say the blues brothers, and it makes sense to have protest but just someone having a different political opinion isn't protesting and you're allowed to do it. >> dagen: $600,000 is the cost of freedom of speech gary k., apparently. >> yeah, look the good news is there weren't big incidents. the bad news is for some of these people the default setting is we love free speech, but not yours and if you disagree with us, take a flying leap. i don't think anything is going to change the good news is it's not everybody and it's only in

certain areas of this country and we have to accept it and it's the way it's going to be going forward. >> dagen: first amendment everybody bone up on it thanks guys and thanks to lee and jessica for joining us. coming up a data breach hitting nearly half of all americans. now get to protect your info and wallet from the nextand happine♪

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>> dagen: predictions, gary k., go. >> we've seen a local of destruction now we're going to see the rebuilding whose going to deliver all the stuff to rebuild, union pacific i expect 20% in the next year because of it. >> dagen: gary b., you were railroad man? >> well, i like it but it's a bit overbought. i'd buy it but only on a pull back. >> dagen: your prediction gary b. >> we've heard about the equifax data breach. one of the best ways to guard against that let your credit card company do it. i like amex, it's up 30% over the next year. >> dagen: jonas? >> i don't know gary because it might just say there's a hack every week that's bigger and

bigger and there will be no credit or credit card or personal information it's cash and cash transfers, bartering cigarettes and gasoline good for western union up 15 from per in the year. >> dagen: that is it, neil is now. >> neil: tax cuts that pay for themselves, hive everyone welcome i'm neil cavuto and president trump has a message for those urging he go slow on tax cuts. quit worrying so much about paying for them and embrace the boom you are going to get from them. well so much of the boom the president insists that washington won't know what to do with all of that revenue. it will be huge. charles says the president is right and history proves him right. also here with charles is charlie. gary willis, ben stein and welcome so charles your point is you do get a bang for the buck the president's right? >> absolutely and i'm wondering what happened to the republicans and their belie