you owning a harley for three weeks. charles: i owned it three weeks, rode it once. i'm not built for harley. it is a beautiful vehicle. blake burman in for neil. blake: you bought the harley low and sold it high. charles: it wasn't low when i bought it. blake: when you gave us the market yesterday we were at about this level, 300. it was up of course. today we're down 300 right on the button on the dow on this nuon hour on the east coast. we'll see what happens here over next couple hours there has been a bit of a pull back after yesterday's historic gains which is was the biggest single point gain ever on the dow, after that terrible christmas eve showing. consumer confidence, also hitting its lowest level in five months, though holiday sales were at a 5% gain this go around. lots to digest, we'll send it to market watcher scott shellady,

and rebecca. all the good vibes and feeling are gone now, scott? >> a little bit of a damper on yesterday. obviously christmas eve was a bigger damper than that at the end. day we're normalizing rates and normalizing economy, with normalization comes volatility. the market is a bit psychotic because it had it too good too long and wonder when the other shoe will drop. we come in the market every morning we have looking for reasons to break rather than reasons to rally like we have done previous two years. we'll have to shake the psychology off before the market finds its feet. blake: rebecca, what do you think? >> it's a stop and go game. we would love a santa claus rally this week. that would be awesome. as so the said we have unusual situations. consumer confidence might be low but increase in shopping, 850 billion-dollar shopping season was a record the last six

years. our economy is still 2/3s of consumer wgdp and employment numbers we're still in good territory. i get sirirritated, honestly, 2 1/2%, rate are we screaming about that, are you kidding me? still abormally low rate in the history of rates. blake: historic lows. help me understand this, part of the argument we saw the increase yesterday of historic bit dow, 5%, just about, nasdaq was on fire yesterday, because there was short-covering going on. there were too much bearish, too many bearish plays within the market. that is why we saw some of this rally but if you look what is going on today, there is kind of a reverse of that. how is some sort of short-covering going on if we're now seeing a pretty big selloff here, scott? >> i mean the last few days, when we see the bears in control there is no reason for anybody to want to buy the market and

they have kind of taken advantage of that strength but towards the end of of taking advantage of this strength, to make it easy for everybody at home, it is like pushing a beach ball underwater. yesterday the beach ball slipped and saw the great rally. we'll slowly continue to come back but the markets needs to digest those types of gains. blake: this gyration is pretty big. it is as we saw yesterday, historically big. the follow-up question to that is, is that healthy? >> no, i don't think it's healthy but here's the deal. if you're going to get upset, if you're not getting upset about tuesday, shrug it off, monday, christmas eve break, you can't get excited about yesterday either, right? you need to keep an even keel. that will be the most important thing. you have to take these breaks and these rallies with the same amount of emotion just like you're out coaching a team. if you want to live and die

every day. we'll have to accept the fact we're in this abnormal big volatility swings because we're still trying to find our feet with rates and we're still trying to normalize our situation. remember we had zero percent interest rates for seven or eight years. that is way abnormal. i agree with the other guest, 2 1/2, 2.25, big deal. those rates are historically low. we have to come to grips with sour economy. so far the economy is doing really well. we have to get our mind around normalization of rates should be. blake: rebecca, this is time of year, computers would be turned on, everything would stablize as all traders go home, enjoy the break, et cetera, et cetera down the line but we heard steve mnuchin complain the other day, week or so ago, the computers are the ones really accelerating all of this. with the wild swings we've seen here in the last few days, what normally should be somewhat after quiet time is this proving

the secretary of the treasury to be right? >> we do have 90% trading done by computer algorithim. the algorithm unfortunately can only predict what is in the past. no way to come up with a future we've never seen before. this is unusual and uncharted territories. we have strong economic fundamentals underlying this economy but we also have a lot of geopolitical things happening, obviously government shut down. i don't think the government is big. i think the it is fine the government is off between christmas and new years. this has more of a market effect, back to work, back to normal. government shutdown, but 90-day truce with china. yes, these algorithms are not used to pricing in, figuring out what is going on with this very uncertain economic environment. i think they overreacted on monday with christmas eve. yesterday was obviously a short problem, another overreaction. i do think he has a valid point because algorithms cannot predict in uncharted

territories. we have the longest bull market in the history of our country that is it also uncharted. there is a lot of thingses happening. in my opinion, algorithm, scott might disagree, they are overreacting to what is going on. i agree with him. blake: thanks for joining us. we appreciate it. >> thank you. blake: yesterday's massive runup adding to already 2018 incredibly volatile for the stock market. for so many at home your 401(k). let's bring in jack mcintyre. he says it is now a good time to reassess your investments. hey there, jack. >> good afternoon,. blake: this is the cliche when we see the massive swings especially to the downside, don't look at the 401(k). is that right? >> i agree although i think this is probably a good situation to kind of do self-analysis. because if the volatility we're seeing has created angst around your 401(k), probably means you're not positioned correctly. you probably have a little too much risk in your 401(k). the key to successful 401(k)

investment is asset allocation. you need to have things net asset allocation that are defensive, do well, when you get this type of volatility. you're seeing that in u.s. treasurys. if you're a long term investor, don't even think about this volatility. view it as positive, that you buy stocks cheaper, hold them for the next 20 years or so. blake: i think you're talking not necessarily to people like myself, who might have a few decadeses of work under my belt you don't look at the thing, it is what it is and you talk about it years down the line but what about the baby boomers out there who obviously don't have a few decades left underneath them or few handful of years left for work. they're looking at this thing end of 2018 is now the time to cash out? >> you're right. again it goes back to what i said earlier, because if they're that laser focused, they have too much equity exposure, given they are very close to retirement. should they cash out? no. i think that the volatility that

we've seen over the last few days, is extreme. i wouldn't extrapolate that going into the next year. liquidity is very thin it exacerbates these types of moves. if they're looking to make a change in the 401(k) i would actually think about moving some of your equity exposure overseas. i expect the u.s. dollar to come under some pressure here. blake: you know the average person isn't going to sit there to manage their own 401(k), move money overseas, looking at this. saying in the last month i have lost 10%. if they have been keeping money in a 401(k) years, into decades that could potentially be a lot of money. so what you say to the folks sitting there looking at the top line, man, that is a big chunk of change, it's gone? >> and you're right, again if they have had the equity investment for the last 10 years, hey they have done very well. so yeah, this is you know, market timing is tough. as you get older, you know the rule of thumb is, shift some more money into income-producing

invests, to offset the volatility that you're seeing in equities. blake: what does the next year look like for you? >> again i'm not in the recession camp. u.s. is slowing. it is creating stress in the equity market but particularly because the fed is tightening. but i think bonds still look attractive. i don't see inflation. i think it will be a world where i'm not extrapolating volatility we'll see today. things will calm down. there is better growth outside of the u.s. there is better potential to make money in em markets. blake: real quick, foreign markets better than the u.s. at this point. >> yes. they have had their saleoff. it wasn't until october things started to reverse. they have discounted a lot of news. now the u.s. is slowing down and equity market is going through that adjustment, the u.s. equity market. blake: jack mcintyre, have to leave it there. thank you very much. >> my pleasure. blake: by the way there is this whole shutdown thing going on

almost entering the second week. yesterday on the show we had a republican lawmaker who said, you know what? 800,000 workers wonder what is happening with the paycheck. that is not my worry. those are his words. we'll take it up with a different republican lawmaker coming up. oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

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blake: we're starting to feel this now after we get out of the christmas break as those government workers need to go back on the job. half of 800,000 will not be working until all of this is figured out. the commerce department among those saying you will feel effects because they will not releasing certain data, including data on housing, potentially even gdp numbers, et cetera, depending on how all of this plays out, over upcoming days make even weeks. the big question going forward will this be days and weeks. there is growing debate which government workers are impacted. president trump tweeting that democrats don't realize that most people that are not getting paid are democrats. that is his claim. "daily caller"'s chris bedford. hi, chris. >> good afternoon. blake: is there any accuracy to that? is it democrats are impacted

most? most of d.c. and maryland, suburban virginia, et cetera is democratic strong hold but, it soames like somewhat of a stretch to make that claim, no? >> i haven't seen any statistics to back that up but in the washington, d.c. area he can be pretty reliable that is true, however these federal employees are all over the country. here in d.c., maryland, especially areas around washington, d.c. and northern virginia are extremely blue. washington, d.c. is 95% democratic or more. unfortunately for the workers if it is not figured out next 15 days, if it is figured out next 15 days, they will get their paychecks with time off. they will get the paychecks unless congress doesn't figure out the january 11th. blake: january 11th is the next date paychecks go out. congress will gavel in later this afternoon. absolutely nothing will be accomplished. probably nothing gets accomplished between now and new congress on january 3rd.

when the flue congress gavels in, right off the bat, nothing gets accomplished as well. am i too far out on that one or no. >> you're not too far out. the government shut downs are practically seasonal. i don't expect there to be much compromise with the new democratic congress coming in. up to the republican senate. they're in, but not planning any votes until there has been a compromise. so far there is very little movement. if there is going to be one, i suspect democrats will give a little bit more. the republicans will not demand the 5 billion-dollar figure and they will pass it. blake: if they give more, right, president at $5 billion, democrats at 1.3 or at 1.6, democrats are at no money for border wall. they're talking about border security but not the wall. do you think they will eventually move on the wall? because that seems to be the sticking point? >> it is possible. a lot of this is symbolic, some

politics here. why would they care if it goes to the wall or border security? only reason they care because it is a president donald trump campaign promise. it is interesting when republicans tried to shut down president obama's signature thing, obamacare, republicans shutting down the government. when democrats shut down president trump's signature idea, it is once again republicans shutting down the government. blake: the president said i will take the man tell on this one? >> in reality both sides here are completely to blame. last time it was both democrats and republicans to blame over refusing to reach a compromise. if democratic give, yes there will be good and problem solving. they have no real political need to do that right now. all they want to do is not give president trump a win. if they don't open up the government again, president trump doesn't get a win. blake: let's look big picture and rosy for a second. say there is compromise, comes before january 11th, 800,000 federal workers don't lose a

penny and get their paycheck on time, at that point minimum two years of divided government. is this what we're dealing with, not dealing with, seeing, since we're not in congress, is this what we see for the next 700 plus days at minimum potentially? >> i definitely suspect that i don't think democrats coming in taking over the house of representatives have incentive from their base or political point of view to work with the president. it has gotten to the point, things democrats and republicans maybe would agree with in the congress, infrastructure spending bill, republicans moved far to the left on that. blake: he said, president had said at the end of 2017 infrastructure will be easiest thing to do but just the other day he said if, in a tweet if democrats want infrastructure they need steel slats, which aka a, the wall. and that is the doa, dead on arrival, right? >> he is going to hold up anything he can to get the wall because it will be really hard for him to get reelected president if he doesn't deliver on one of his absolutely key

promises. democrats have interesting time. they used just have to work with the union base and working class base that they had. now they have a really strong environmentalist movement. you have seen moves from chuck schumer to say we're not going to work on infrastructure with the republican unless there is huge carveout for green energy. both sides constantly moving the goalpost. it is no longer simple just fixing bridges anymore. blake: we'll see what happens with this. we're talking, chris bedford. appreciate it. that of course the legislative side of everything. what about other thing the president wants to accomplish, china, a new trade deal? there is concerns about that country's technology and maybe what they're doing around the world as well. the china story coming up after the break. capital one cafes. inviting places with people here to help you,

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blake: during that historic 1086-point move yesterday, the largest ever.

tech one of the reasons why it was up yesterday and today. one of the reasons why the dow is down today. gerri willis on floor of new york stock exchange. with tech -- >> there are so few headlines in the sector today. it is really just resetting after that big boom in stocks yesterday. now take a look, facebook, apple, amazon, all down, really no big headlines there. with the exception of apple. a report today that they are hurting because they made so many share buybacks that turns out to be a bad investment, right? so you can see, netflix be microsoft, down here again. the idea there aren't huge headlines, but things could be better. info tech, nvidia, amd, rbc put out a note saying near term caution on gailing stocks. so those two tech stocks down. let me tell you quickly what is really doing bad and that would be health care. biotech, insurers, across the board, celgene, unitedhealth,

j&j all down. communications sector, disney with reports they are in a dispute with verizon. they are down 10 percent because of argument over fees. cbs down 2%. netflix down three. we covered technology. let me tell you when you look for sectors doing well today, it is very difficult to find any. mostly they're just not doing as bad as the ones doing badly. back to you. blake: right, right. gerri, thank you, appreciate it. >> you're welcome. blake: we're getting all the massive moves in the market, by the way. there is very little headlines and news on trade which is moving the markets leading up to this in the weeks and months prior. potentially move the markets as all trading negotiations in china pick up again in the beginning of 2019. trade talks set to resume, we thought we would revisit our favorite debate of the year. watch. >> i love jonathan. we agree on most issues. but i don't --

>> no, we don't. >> i don't understand why -- >> no, we don't. >> basically saying hey we need taxes, higher taxes. >> we'll have to raise income taxes jonathan. >> no economist, no economist agrees with this. no member of federal agrees. >> economists who got us in the mess we're in. we have 800 billion-dollar good trade deficit, 550 billion-dollar overall trade deficit. no other, no other major exporter in the g20 -- blake: that was, i think august or september earlier this year. look who we got here. headed into the new year, lee speaker man, capitalist pig cofounder, jonathan hoenig. you guys facebook friends? sharing kids pictures, all good, everything ready to go? >> ready as always. >> yeah. i mean i, since the president called himself tariff man, market is down about 15%. we were told that trade wars were good, they were easy to win.

they have been anything but, blake. i don't know -- >> we've been in a trade war for decades, jonathan. >> you can spin this, i don't know. >> that is reality. >> you are saying we lose money on trade. that is the fundamental issue. president believes when you buy something from china, somehow you are losing you pay for it in cash it comes back to our country. blake: let me jump in here for a second, what about the argument some have made which is obviously the market is down for many reasons, the federal reserve being one reason. also if you go back to the tariff man tweet, and you see where the market was then and where it is now, some say there is a correlation. you say what? >> i mean i love the tariff man tweet. actually, we've been in a trade war with china for over 20 years. we've been hosed. we've been losing our a, pardon the expression, to the chinese. and it is time we did something about that. it is an emergency. in october, we had a record trade deficit, goods trades deficit with china, over half a

trillion dollars a year annualized. that is totally unacceptable. blake: it is not moving much, though is it. >> no, it has gone up since the president started the trade war. >> i call myself a capitalist patriot. a capitalist patriot as is president trump. we are not going to allow ourselves to be -- >> lee, take some economics. read some henry hazlett. read adam smith. read any economist who would tell you -- >> i've read all of those. >> well you're saying celebrating the tariff man tweet. >> adam smith never endorsed unfettered free trade. he wanted to reduce tariffs. he assumed all of the countries -- >> well you're increasing tariffs. >> china is not operating by the rules. china is not operating by the rules. right now, we are -- >> you keep saying that. >> we're piling up half a trillion dollar a year goods trade deficit. >> trade deficit. you're like trump, with repeats. blake: let me jump in here for a

second because we've gotten to this point, right? we had the debate back in august. we have gotten to the point seen where president trump taken this 2019 we obviously have no idea what there will happen there. seems like there is movement with china. dinner at g20. china seems to come towards the u.s. side in some things, i.p. theft, auto tariffs, et cetera. jonathan, is it acceptable which way president trump is moving this. >> there last been a lot of movement. there has been movement of american dollars out of their pockets into the federal government. $50 billion so far from the, president thinks coming from china, blake. it comes from american consumers. it cost american consumers $50 billion. if you ask any economist, any ceo, what is number one worry for 2019? it is trade war. 20,000 jobs have been lost. >> 2 million jobs to china. not 90,000, 2 million.

blake: lee -- same question to you, are you satisfied where the president has taken it at this point? and are you satisfied what you think 2019 will unfold like? >> well, i love the direction the president is going. china is feeling the heat. you talked about the stock market. the dow jones industrials are down year-to-date nine to 10%. the chinese indexes are down 25%, almost three times. >> so you're sell is greating. and you're celebrating. >> you bet i am because we have been hosed by china. jonathan, you're the voice of the american economic elite. i'm talking about the other 99% of america that trade surplus that china piling up -- >> 99% of americans -- >> they are funding research to the destroy our economy. >> can i get a word in edgewise. blake: jonathan. respond to that. >> we heard american -- >> president, you worked for president bush somewhere along the line.

first president bush actually tried -- >> i worked with his dad and nephew. >> he is on your twitter feed. first president bush tried the steel and aluminum tariffs way back in 2002. they thankfully gave them up after a year, after they saw they were costing american consumers money and americans jobs. this issue on tariffs has been settled. this was settled decades ago in economic history. >> it was settled by china. they took advantage of a system. they have had a predatory trade system. we lost at least 2 million well-paying jobs since china has come into the world trade organization. blake: lee, let me ask you -- >> 2 million well paying jobs. you may not care at your hedge fund. the average american -- >> here goes the class warfare. blake: hold on. hold on. let me jump in here for a second. lee, are you worried though that some price have gone up, simple question? blake: because some of this is passed on to the consumer.

>> we are at very low, record low inflation still in this country over all. most of the tariff price related increases will not be passed on because we're in a brutal world economy. producers and importers will cut costs in other ways. by the way when you have more jobs better american incomes there is more money to buy goods and services. that is what we need. china has -- wait a minute. china has got to move to a realistic economic model which is they consume most of their own products, not have a predatory trading practice with the rest of the world is unsustainable. we're borrowing half a trillion dollars a year or selling american assets, half a trillion dollars a year. blake: jonathan, i have to get -- get out of here. >> half a trillion. two million jobs doesn't matter. yeah it matters a lot if you're not -- blake: lee, we got to run real quick. but jonathan, last question to you, since i asked lee about concerns, are you concerned at

all whatsoever if the president doesn't confront china then china's practices will continue with no end in sight whatsoever? 20 seconds. >> china's protectionism hurts china. the reason the america has always been the most successful country we're always the moats free. lee is right about one thing, china has come a great deal. >> we had higher tariffs through almost our history. >> let me get one word in here, lee. let me get one word in here. you had your chance. let me get one word in here, lee. the reason china has improved since the 1990s they liberalized their economy. they freed up their economy. we're moving in just the opposite direction. >> no. >> we were told trade wars are easy to win and all it has done is lost dollars in american pocket. >> they have stolen 2 million american jobs. they are sucking half a trillion dollars a year out of america to fund their military. >> you don't get trade. you get -- blake: let this go all afternoon

long. >> you really get trade. >> you doesn't listen. it could go on. blake: hold on. hold on. >> half a trillion dollars a year. no big deal. blake: hold on. thank you to you both. we appreciate both of your views. >> always a pleasure. blake: i hope both of you have a new year. >> looking forward to it. blake: guys, appreciate it. investors by the way, look at the dow, what happened in the last ten minutes or so down 445 points, nearing 2%, we had been close to 2% range as well. investors are antsy, but average american, the average american out there are they anxious as well? some say wall street jitters are not reflecting what main street is feeling after this.

blake: we get into january or february, there is some sort of a short term deal with federal workers, back on the jobs, paychecks back in their bank

accounts? >> federal workers are least of my concern for a couple reasons. first of all -- blake: i got to imagine those federal workers though, it's a big concern for them. they have got families. they have wives kids and need a paycheck, no? >> it may be but you know what? the sovereignty of this country dwarfs them frankly. blake: congressman todd rokita telling me federal workers from the shutdown, is the quote, the least of my concerns. oklahoma congressman markwayne mullen is on the phone. tried to get him in studio. technical difficulties but we'll take him over the phone. congressman, appreciate it. >> sorry about all the troubles, blake. blake: glad to have you on. you heard the comment from one of your colleagues, todd rokita. >> right. blake: wondering your reaction to it, seems like awfully convenient position to take you don't care about concerns of those getting paycheck, when members of congress and members

of their staff are getting a paycheck? >> it is hard for me to know exactly what todd was meaning, i do know in the last two shutdowns unfortunately i've been a part of, including the one in 2013, all the employees received back pay, even ones furloughed at home, they received their paycheck as though they were at work during the whole time. even though they would rather obviously be at work, getting a regular paycheck. i think they only missed one pay period because they get paid every two weeks. the idea, regardless of the situation, this shouldn't be happening. we shouldn't be taking politics and putting it in front of national security. regardless of the issue, everybody wants to be at work, including federal employees. we have to do a better job making sure we can put american people first and politics second. blake: seems like a reasonable position to sake. i guess the question is how do we get out of it? right now seems at dead stalemate. won't fix anytime soon?

>> depends which way you want to go forward. nancy pelosi has an issue. she needs to get 218. she doesn't want to take a position. if she takes a position, she could lose a vote or two. she is on the bubble getting the gavel again. chuck schumer, he is trying to do his best to gain control of the senate. doesn't make any difference what the president offers, i don't think they will take it. they're saying the wall is about immigration, when it is about national security. blake: what about, what about, that republicans, you know, as this president has been in control and republican congress has been in control, that you know, they haven't been able to strike some sort of a deal? you put it on -- nancy pelosi is one factor. not the only factor, right? >> absolutely but here is the deal. we want to put national security first. we want a wall. we're asking for $5 billion to build a wall which is extremely reasonable price if you're

talking about national security. in return we offered daca to them. they have been saying they want to get these individuals legal today, brought over here, no fault of their own but yet average age is now 24 years of age. we offered tps, temporary persons status individuals that was brought over here during the clinton bush era, roughly 400,000 people. we're having offers on the table but their position is, no money for the wall period. so where do you move at that point? because the republicans right now are saying it is enough. we played games enough with our border. this isn't immigration. this is national security. but for them it is a talking point. blake: i have to run, congressman, real quick but does this get resolved in january? >> i would hope so. blake: is that a yes. >> i don't know how to move to ward. i would hope it would be resolved by this point, blake. blake: congressman markwayne mullen joining us on the phone. thanks for your patience and

joining us. >> absolutely, blake. blake: meantime stocks facing the worst december even after yesterday's move. hillary vaughn is at the white house with what folks all across this country are saying as it relates to investor angst. hi, hillary. reporter: democrats are dumping on president trump blaming his shut down for recent volatility in the market. senate and house minority leaders, chuck schumer and nancy pelosi issuing a joint statement, saying quote, president trump is plunging the country in chaos. the stock market is tanking and the president is waging a personal war on the federal reserve but white house economic advisor kevin hassett says on fox business yesterday, that the white house is confident in the economic data, sales are strong, liquidity is there, calming the market from day-to-day is difficult, but he says he is not worried about a shut down, having any long term impact on the market. >> what is the impact on the economy and markets from the shutdown? you guys aren't concerned at all

even if this would go on for several weeks? >> that's correct. in the end a few week shutdown will not be something that has any kind of significant effect on the outlook. reporter: blake the recent volatility in the market isn't spooking the president into compromising or ending this shutdown anytime soon. hassett telling me that the market can handle a shutdown, even if it goes on for several weeks. blake? blake: hillary vaughn, that is learnly the position of the white house. upcoming trade concerns and negotiations could have a big impact on small business. there is so much on the plate for this administration going forward. the president and ceo for the job creators network alfredo ortiz is with us here in studio. alfredo, thank you for joining us. >> blake, appreciate it. blake: i know you deal with the small business aspect. start with the shutdown since we left there with hillary. >> yeah. blake: this is a big deal for the d.c., virginia, maryland area, if this goes on and on and

on what happens there? >> you said it best. it is a big deal for the d.c., virginia, maryland area. outside of that, we got a survey that most americans don't care about the shutdown. many say, when the government is shut down, actually a good thing because things actually get done. our small business owners continue to invest in businesses. optimism is sky-high with small business owners. revenues are good. cash flows are good. a great sign for investment, for our small business owners their businesses. blake: the nfib last month kind of brought back small business sentiment just a touch. it did dial back, so there are legally some concerns, right? >> there is a little bit of softness but overall there is great strength. the big concern is the labor market. there isn't a lot of labor. there are 7 million unfilled jobs. folks in terms of consumer sentiment. they feel great, there is job availability, wage increases are some of the best we've seen in years. over 3% on wage increases. actually the best part about

that, those non-supervisory, what they call blue-collar wage increases are going higher than the white-collar supervisor wage increase. that is booed thing for workers. one item doesn't get talked about nearly enough, the new tax bill went into law. >> that's right. blake: americans, small business owners all over the country will be figuring out if this thing is a good or bad thing for them. >> yeah. neil: what are you hearing? there could be a surprise, either to the upside or to the downside? >> we actually saw some hold back actually from small business owners because there wasn't as much clarity until recently from the treasury about their invests, how they invest back into their businesses. now some of that clarity is taking place from the treasury. we'll start seeing small business owners continue to invest. blake: not a big investment in 2018. because if you're just seeking clarity -- april or june or december, whatever? >> i actually think we'll have some inputs or some investments that will actually happen in the first quarter of 2019.

remember folks will start seeing some of these tax filing season, everyday consumer will start seeing some returns come. they will actually start seeing the benefit of that tax cut. blake: alfredo ortiz, thanks for joining us. a lot of people will be filing out their returns. >> happy new year. blake: happy new year to you, thanks. a new survey showing facebook is the least trusted tech company. so can shareholders trust mark zuckerberg to turn things around? it was a rough 2018. we'll look ahead to the next year coming up. n markets. so you can be less concerned about your retirement savings. talk with your advisor about shield℠ annuities from brighthouse financial, established by metlife.

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blake: just about everything pulling back today, that includes the dow down about 400 points. tech and telecom part of pullback. with 5g smartphones hitting the shelves in 2019, one of the questions could these companies see a big boost going forward? to market analyst mark grant where he sees the future of 5g technology going. hi, mark. >> hi, blake. blake: when we think about 5g this is technological marvel many of us can't wrap our hides around but reality it is significantly higher speed, correct, essentially? >> it is significantly high every speeds, blake, but it is across the board because of these higher speeds it's a

typical, it's a significant move in technology that is going to change any number of industries and have very serious effects both positive and negative on a lot of companies. blake: at&t is starting to roll this out in the beginning portions of 2019. it is not everywhere. it is cities all across the country, anywhere from atlanta to waco, texas, throw a dart at the map. taub about this rollout. what exactly does it do and how many people are going to see a significant difference? >> well, as it rolls out, during the next year, year, 1/2, you're going to see very significant difference. for instance, in the makers of telephones, all the telephones that exist right now, none are capable of handling the speed and latency of 5 a g. it will be positive for makers

of telephones. the distance 5g travels is less than the 4g network, so you will see a lot more towers built. it is very positive for the tower companies. blake: all across the country, right? there is obviously an internal competition between the companies here in the u.s. but there is also this competition with china all over the world, trying to put 5g in other nations, build it out for them, kind of get ahead of the curve, reap some of the benefits there. but there are also worries that maybe china is doing this for different reasons? >> well, china always does things for different reasons. it was interesting to me to listen to the guest as little bit ago. the real issue with china, they were just talking about the tariff issue. the real issue with china it is a "game of thrones." america has been the biggest, strongest country in the world since world war ii. and they're trying to stand up

and compete with us. the problem they have, basically though is that our economy is 21 trillion. their economy is 13 trillion. they have a ways to go to catch up with us. it is just a "game of thrones" in which the tariff issue is just one part of it. you point out correctly they have, several companies that are trying to get into 5g. but they don't have a shot in the united states and frankly, i don't think they have a shot in europe either. blake: espionage concerns there which many are now worried about, voicing all across the globe. >> correct. blake: mark grant, thanks for joining us. we'll see where it takes us in the year ahead. >> happen holidays, blake. blake: you as well. shares pulling back after yesterday's gains. a new survey, showing that facebook tops the list of the least-trusted tech companies. american majority ceo ned ryun is here to talk about that. hi, ned. >> hey, blake, how are you doing? blake: doing well.

what happened to the facebook? this was the gold standard of these companies now there are a whole lot of concerns and a whole lot of worries about the direction of this company. >> a lot of revelations this year, blake, with regards to the situation with cambridge analytica, user data, privacy, obviously the last couple weeks. more revelations perhaps user private data accessed by third parties without permission of users. people keep on asking, is mark zuckerberg going to be around? he will be around. he has 51% voting power, he has a clause to remove any bored member with or without consent. the big question about facebook's future, whether the federal trade commission decides to lower the boom on them. i think they have been in violation of the 2011 consent decree, violation of user data and if the ftc -- blake: put that in layman's terms for us. >> here is the situation. back in 2011 facebook at the ftc decided that facebook had violated user privacy and data.

there was an agreement between the facebook and ftc saying you can't do this anymore. it's a 20 year agreement. if you violate it, per user, per day, it is over 40,000-dollar fine. if the ftc decides to pursue this, the sum could be staggering, i don't think they will fine facebook a trillion dollars, even if it's a 100 or $200 billion that is a huge slap down they will not tolerate this anymore n regards to the trust issue, i don't trust facebook, google, amazon. if you don't trust facebook, google is likely collecting more personally identifiable data every day than the nsa people should be horrified by it. blake: the republican congress took up this issue. they want to know how these companies have operated but really not much was done. >> i know. blake: this is infancy of these companies in tech. should we expect any of that to change legislatively going forward? republicans took up this issue,

but it was a bunch of hearings, a bunch of headlines, made up for a bunch of stories but as i recall no legislation? >> not at all. this started in 1996 with the telecommunications act and section 230 exception. they have got to go back we'll remove all the section 230 exemptions. what they were saying at that time, these guys are neutral platforms. i don't any anybody in their right mind would say any of these guys are neutral platforms. of their own volition they have chosen to become publishers and telecommunications companies, blake. the first step to address this, we'll redefine you. you're publishers, you're telecommunications companies. you play bit sail rules as anybody. you come under ftc and fcc oversight and regulation. i think that is a huge step in the right direction. blake: not sure we feel bad for mark zuckerberg. i looked it up. he last lost $20 billion in worth. his net worth is still about $53 billion.

>> that's right. blake: ned rye yawn, thanks for joining us. >> thanks, blake. blake: president trump blamed the fed for market swings. he owned market on the way up, now that it is coming down, word out of the white house at least from the president, federal reserve, get out of the way. is the president though too fixated on stocks? we have whole another hour of "cavuto: coast to coast." stay with us. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. ..

blake: our number two of "cavuto: coast-to-coast" spirit employed ermine and for neil cavuto today. stocks giving back a decent sized chunk, a third of the historic gains yesterday. as the selling we stand west about jitters and year-end profit taking. a lot of questions today is the enough figure appeared hello, how are you both doing? >> great, how are you? blake: just come all-star revue. what's your read, your take? >> there's not anybody around. you could throw a bowling floor across the floor of the new york stock exchange. your guy had such liquidation, tax all income and mutual fund liquidation on the person appended to the hampton and their second in command of their told not to stand up to it. they want to go down, let them go down here and if they want to take them a call up and take it up. blake: you raise a good point they should be the week where you go on your vacation wherever that might be peered over seeing

this big gyration. steve mnuchin is talked about their spirit i were starting to see that as a side effect? >> that certainly got a lot to do with it. 50% of the traders push button trading now appeared in selling into a vacuum. yesterday by u.s. into a vacuum. until the pros come back in january, you should really put blinders on and not pay a lot of attention to it. blake: sean, what are you seeing today? >> i was thinking to myself we must've done something terribly wrong with worse was to be on vacation were here. i always say i'm going to take this week off in here i am. >> here we are. you look at the volume pretty anemic. but also some things out there that are spooking people. trade issues worrying people, fed is no wage growth worried

people. if you just want to book next year's s&p earnings of $177 play a multiple everyone would feel much better. it's getting 177 that may come under pressure for some of that. one last little bit of this is we've had a long bull market in terms of the number of years. not the most historic in terms of percentage increase, but as it to expand itself people get more nervous. a little bit jittery as well. i'd be a little nervous between now and any of the year because their smart tax and a staffing. >> a picture when you look i can see a great day yesterday in the dow, what does it say that just like dr. was a sellout? >> i looked at the numbers this morning. if you go back to 2000 look at the 4% boost in the market, almost 80% or more occurred during an extended rocket decline. the daylight that doesn't necessarily mean everything is

over on the downside nor is it an indication that things are going to get worse. historically speaking when you look at big meadows back 18 or 19 years, 80% of those statements, 4% or more have occurred during a decline. a normal part of the function market until it finds the level and moves forward from there. blake: so i guess that leads to the next question. when does the market find itself and how long is this decline going to continue? >> i think the decline is pretty much over. [inaudible] i don't think it the end of the secular bull market. 1949 for 66 bull market had a number of pullbacks that didn't end the secular bull market. that didn't stop. it went off for another 13 years through secular bull market plus 14 plus years and i think this 20% down representing a bear market is not the right metric.

blake: sean, president trump last word to you. mark on him as we look forward? >> it hasn't been very smart for the last part of this year, but generally speaking if you've got a long enough time horizon you should look at this as an opportunity to find stocks that you can buy very inexpensive versus their earnings or free cash flow. you should be your chops a little bit to enter here. >> the president called it a buying opportunity. in any event, we'll leave it there. thank you very much. we'll have you back in 2019. in the meantime the president blame them aside for the market selloff. he's been doing this for a while now appeared wall street journalist mary anastasia o'grady says the president is unjustly blaming the side for the market volatility. hello, how are you? >> fine, how are you?

blake: good. own it on the way up and down. in president trump's defense, let's remember he's not the first president to complain about fed tightening. a president who also happens to be a real estate developer is not going to like the fed tightening at all. i think yes, ignoring a couple of reality is not the market understands. first of all, you know, you can't have a negative interest rate in perpetuity. when this happens when the fed didn't want to do more quantitative easing, we called it a temper 10 germ and i think we have a little bit of that going on now. yes, credit costs money. right now you have negative interest rate or you had negative interest rates. i don't see what the market what the president should expect us to have negative interest rate in perpetuity to hold up the

market. you could argue it artificially inflated financial asset and now you're moving back to normalization. >> this is the president who came for the real estate world so presumably he understands the fundamentals of it. why do you think he is taking the frustration out on the fed presumably he knows everything that is happening. >> partly because his narrative wasn't going to cut taxes. excuse me. the economy is going to boom in the stock market's going to boom. when the stock market was going up he took credit for it. the other reason is the fed isn't only doing this one rate hike in december, but it said it's going to hike rates throughout next year. i think that part of his modus operandi could be as if he screams and yells about this one even though he knows it's coming, maybe he'll get fewer next year. blake: kind of like working the refs in sports. screaming out the rats and maybe at some point it should've been

called a foul. >> let's face it appeared he didn't want them to rates in december either. i'm not so sure that he thought it through that well. he has to scream and yell and make a lot of noise in order to get the fed's attention. now there are some people in the market who think because commodity prices are not going up anymore, you know, you don't have this underlying inflation and of course the job market is lagging indicator. so what they're doing is that they should take their foot off the gas pedal a little bit because the economy is slowing down and you don't want to be on the back half of the curve. the problem is we've never tried to land a plane like this before. with all this excess quantitative easing in the system. so he's right in one sense that they need to be cautious. he's wrong to blame the market downdraft on the fed. >> will tell you what i found so

interesting when the president made the comments on christmas day in which he said interest rates may go up if you have money in the bank you make more money on the interest rate. it was the first time i've ever heard the president talk of higher interest rates. this came at the same time all the reports were coming out and mnuchin at twitter, hassett, that the president realizes he cannot fire the fed chair. is this a moment where president trump is realized, you know what, this is in a political fight. there's not those. i can pull them into my office and scream. this is what it's going to be on top of the other side of it. >> along with realizing that it's probably been explained to him that there's a whole universe of retired people out there who've been dying on these negative interest rate and it's very tough for anybody on a fixed income. breeding these interest rates back to normal as constructive a fax not just for banks, but also

for older people on fixed incomes. blake: mary anastasia grady, thank you for joining us. see what the fed does with it. >> happy new year. blake: from the market selloff, blamed for the government shutdown. there is backed by the way. we will have a debate on where to go from here as the market on this day is down 350 after the historic day yesterday. stay with us. we'll go to "cavuto: coast-to-coast" when we get back. (engaging uptempo music)

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>> what if we get into january or february and there is some short-term to get these federal workers back on the jobs and get their paychecks back in their bank accounts. would you take back? >> up? >> up to you a print of federal workers are the least of my concerns for a couple reasons. >> i've got imagine those federal workers is a big concern for them. they've got families, wives, kids. >> that may be. do you know what, the sovereignty of this country were some frankly. blake: congressman todd rokita appeared to talk about the shutdown, with republicans want, how this will change the dynamic in 20 team. at the end of the day, the

border wall, et cetera come 800,000 federal employees who know what they're going to get paid tomorrow but aren't sure if they'll get paid on january 11th. chad joins us on the phone today. or do i have you in person? inherent person. you're working because capitol hill is up and know nothing would get accomplished. it sounds like from what we heard from todd rokita, they are members of congress on both sides dug in. >> job, no real change in the stories and last friday night when the government formally shut down. there will be a crew on capitol hill today. they will meet in pro forma sessions at 4:00. gavel in the gavel out. there was about over the weekend they were getting close to an agreement maybe this could be a key day. and then bounce it back over to the house of representatives. i communicated with whenever the house republican leadership who

indicated they didn't think there would be any movement until after the first of the year. what happens precisely a week from now, nancy pelosi is presumed to become speaker of the house. what seems to be the tactic i republicans right now is try to put this on her and say wait a minute, you bear some responsibility. you're the speaker of the house. what are you going to do? we are ready no democrats will pass the bill stands while funding with the democratic majority and bounce it back on the senate and your were stuck again. blake: it's obvious when we speak to republicans that's what they're doing. the first thing they say is nancy pelosi. we also have the sound we can run for days and two weeks and hopefully get to that of the president saying i will take financial on the shutdown. it gets to the point of again when you strip all that aside it doesn't seem like there's any movement for weeks and possibly months.

>> we talked about the idea 1995 and 1996 he had a series of shutdowns from a sober and 95 into january of 1996. so either democrats have to accept something that the wall of the president has to sign sent in a dozen of the wall in it. it's hard to see how the house democrat give when they have this new majority. new dynamics i saw. number one it might behoove republicans to give a little bit right now because they have republicans controlling the house of representatives. then they will have one once a becomes noon and they have controlled the house and there's no way any democrats in the house of representatives will push for a law. if people start to see some polling and blame one side or the other, president trump, his polls move between 35% 46% at the most.

he doesn't really care about the polls. if democrats see aside for them, this is kind of what republicans are betting on. nancy pelosi is toxic or choose not popular. she's returning to the speakership and they can return on the winning them to play when they don't have that many cards to play frankly. true to chat pergram on capitol hill. thank you. who's going to take the blame at the shutdown drag on? minority whip republicans are brilliant democratic strategist indra feldman. hi, guys. >> good morning. good to be here. blake: good comic clear play for republicans as we've heard on the show a little while ago the line that is starting a new heard from chad the line starting to make the rounds is this is an nancy pelosi's court. you say what bush and mark >> i say is the trump shutdown. no if's, and's or but's about it. we heard that in the oval office

from term. he was proud to shut him the government and that's what he did. in luck, polls and polls have shown and i think it's going to have to move off of his amoral position because it's hurting 800,000 workers and it had nothing to do with the democrat. nancy pelosi and chuck schumer have brought bipartisan deals to the table and trump hasn't moved. at the end of the day, trumps going to have to move and he needs independent voters to win in 2020. >> where to take the president at his word if it goes down the road. >> right night of democrats who could easily on the shutdown by supporting something they supported in 2013. i'm glad he used the word immoral because it's been more than entertaining to watch democrats to mental gymnastics and try to explain why something

is now immoral. when barack obama's name is on the stationery of the white house or public integrity bent a little bit on this issue. they started with 5 billion a 25 billion a full wall funding. there's rumors and stories the vice president offered as little as $2 million. republicans are going -- they're trying their best and democrats could end this with a simple vote. >> we've heard this as well that it was senator obama and senator clinton and senator shu mai, et cetera who supported while funding a decade ago. >> that was a comprehensive immigration bill and the bill in 2013 was a bipartisan gain of eight deal that was comprehensive immigration reform. that's what we need or that the democrats are pushing for. we want border security. we would have enhancement technology at the border to be

safe and make sure we are not letting folks comment better criminal and crossing the border illegally. the wall is completely coming in now, just a talking point that would actually enhance security. if we want to talk about border security, democrats are all for it. but let's not say that the wall is actually the solution to our border crisis. it's not. we want to talk about comprehensive immigration reform. that's what we did in 2013. we brought bipartisan proposals to the floor of the house and the senate and we've tried to get the president to budge on them and we have had any ability to compromise in real immigration. blake: joe, 15 seconds. >> the bill he's talking about includes 700 miles of new border fencing. you can call it sent, wall, steel slot. democrats should come to the table and vote on it. blake: joe gorelick come indra

feldman. we'll have to leave it there. thank you for joining us appreciated. retail stocks taking despite reports of record spending. it was a great christmas for many in the stores when you look into black friday, leading into black friday, christmas, et cetera. they're staying in a rally not do much today. more after this. to smoke in a hospital? by the time we could, we were like... what are we doing? kayla: it was time for nicodermcq. the nicodermcq patch with unique extended release technology helps prevent your urge to smoke all day. and doubles your chances of quitting. nicodermcq. you know why, we know how.

blake: welcome back. mastercard sales were strongest in six years. up 5% over the last year. with all the spending, is anyone actually saving? "wall street journal" buys a reporter were her on a cadaver. price waterhouse cooper metro shall in fbn kristina partsinevelos. thanks for coming in. if anyone they been? >> they are saving even though it does concern me a little bit. her right now that is translating to really robust sales which is good for the

economy right now. >> i still think it -- they are massive. the shirt yesterday for 30 bucks. everything is on sale. margins are a lot smaller. talking about the 5% increase year-over-year. a lot of it could be funded by credit card debt, which we've seen. still a little hesitant. >> i wondered when i walk into these department stores how any of these stores make money. everything is discounted. >> they've got all this overhead in so much of the business is going online making it tougher for these retailers. some of the names are doing well, but overall there is a lot of pressure on retailers to make this work. in general americans love to spend, not so much saving. in terms of retirees coming under financial pressure. they're waiting for the social security check to come in. they're desperate because it's

their only source of income for a month. some seniors have it save to this point. blake: is this the time of year when you say my goodness that's what i set for christmas than people realize how am i going to save. >> one thing happening is the dividend consumers getting right now is cheap gas. i think that translated to a little more outflow on the credit card. the question is what happens when the bills come in january and do they pump the brakes and if they pump the brakes, does that causes a slowdown with the economic growth. >> january is a tough time because people open the bill. there will be a lot of spending in november with the sales going on. when you look at the new year, things are great now, but there is more and more talk of a recession coming in late 20 night team, 2020. position yourself now so you're prepared for the recession when it does hit. not about it. about win.

if you're feeling flush because of the tax cuts come out feeling good about your job, start saving. who's the 401(k) percentage and boost the emergency fund now so you're prepared for those leaner times. >> if you look at the numbers for october we don't have any november numbers out. the highest level in 11 months. i'm speaking for myself people are just using credit cards. could we start saving now? what are we going to do given all the variable rates climbing higher with the hike to make a potentially climb higher going into 2019. train to any live here in new york city so you don't have a car. people our age might have a student loan. your son you just told me about a college. eat out all data that. that's on the individual side. look at what's going on with uncle sam's credit card. america's interest payments expected to more than triple potentially to more than

$600 billion by 2023. chronic come you talk about this attentional recession down the line. i don't want to go down there because who knows what happened, but that calculator is in good. we are not in a good read. >> at not a good trend at all. the u.s., china, japan, all these countries have so much that it is becoming a larger part of gdp. it is okay now. very high. and so it's okay now when interest rates are still kind of low, but as they creep up to get more and more expensive to service that debt. not to mention we have less firepower if something happens there is another downturn in the economy and we've lacked money to spend on things like infrastructure which we desperately need. not happening. >> one other thing that's interesting and we've talked on this network about and yield

curve and a conversion. what going on is the short end of the curve or short-term rates go up, the government finances the time of short-term borrowing. even though the long end of the curve, 10 years, 30 years, bonds or stay most and interest costs. the shorthand is going up in knots driving up the interest costs were united dates right now. >> i'm wondering what's going to happen. who's going to buy it in if they do continue, where is that money going to come from? will he continue to leave equities and further have a trickle effect across the entire market. blake: you mention my gosh miss my wife h. and m. yesterday. thank you so much. appreciate it. deficit fears weigh in on some, that the assigned democrat are set to push bigger government. they do have a house in 2019. the details coming up.

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blake: stock market instability not delivered today. oil back down to resign over supply worry. the time of the day to fox business jeff flock and fox news contributor phil flynn with the very latest. hi, guys. >> will get in as big of an argument as you had earlier in the show. i agree with you this time. over supply worries. >> depends on how you demand. if were going into a global recession then we have an oversupply. in 2016, we had an oversupply. by 40%, 50% above the five-year average. in only because we released a lot of oil. like 20 million barrels. blake: why are we so far down in oil and why did we have this generation at a .6%. >> it's more about fear.

originally when oil prices started to go down, he was leaving the stock market down. i've honestly cannot oil stain maybe there's something wrong with the global economy. it's really about donald trump pulling the plug on the iranian sanctions. but now it's changed a bit. and the oil stocks. blake: one of her colleagues yesterday to talk about the effect of the president. one of your colleagues come you know who this is better not when it's better not when it's how you would've said oil is up so much just today trump was in iraq. he couldn't leave. all of the uncertainty out of the market. at least for 24 hours. i'm glad he went. what a great job and i'm so proud of those soldiers over there. >> couldn't read apparently appeared it was a win-win. that's not good for you at the white house. more fun, right?

>> look at the fun premise he the twitter machine. just add an end. thanks guys, appreciate it. u2 are fighting do we know that. >> we try, we tried. that would've been the time of the site. >> i don't want to get in a fight with you. >> thanks, guys are depreciated. president trump telling troops that other countries need to pay up if the u.s. is going to fight their battles. >> america shouldn't be doing the fighting for every nation on earth. not being reimbursed in many cases at all. if they want us to do the fighting, and they also have to pay a price and sometimes that's all so a monetary price. so we are not the of the world. we're no longer the suckers.

i love you because most of your nodding her head this way. blake: the hudson institute in your research fellow rebecca heinrich on if the president is striking the right tone. >> first of all i thought it was wonderful that he went especially at christmas time. it's a huge morale booster to those that are deployed and are holding the line in protecting american people. they all have families at home so it's great the president and melania went. it was exactly right in town and content. on this particular point i know what he's saying. what he's saying is we need our allies to step up and help the united states. >> it's kind of like the same thing he said at nato and its gone there, right? this is his fair share message.

>> it is. the thing that makes me concerned is when the president is making comments that were fighting other people's battles when for instance in iraq, afghanistan and area, we are taking out biases than those who fight like i says. other islamic militants. that's in our interest as well as the interest of our allies. as long as the president understands that it makes the argument. we need to recognize the threat to them as follows stand to help us fight these people who are shared throughout. blake: i'm not asking to make the argument, but i wonder how one would make the recognition considering the president decision recently to pull troops out of syria. many would say that is a battle worth fighting for as well. not turning it over to the russians. >> the president clearly his patience ran out for progress in areas so he made the decision very quickly.

it was the wrong decision even though i understand what he wants to do. we can't have open-ended rights in the middle east where we see progress. they are there as a supporting role and i ain't the president though i understand what he's trying to do maintenance day because 24 hours, 48 hours before that, senior military leaders were telling our allies and partners on the ground bleeding and dying on behalf of the sds. we told them we weren't leaving anytime soon in the president made the decision soon. this is an error. i'm happy to see in a speech he gave in iraq he said were going to keep troops in iraq in case it does spiral out of control or we can take out isis if they do come back again. over 10,000 isis militants still remain in isis. i hope the president can do a better job of making these decisions when he does want to withdraw so we can inform our

allies. blake: the defense department is about to be reshaped because jim mattis has two or three days left on the job here at the end of the new year. i'm wondering what you think the president might do for that role where he might go. >> of course shanahan is going to be the acting secretary of defense. it depends on how the democrats cooperate with the white house and republicans to get another secretary of defense approved. clearly he wants to have somebody in lockstep with him on what we want to do. i actually think secretary mattis did share a lot of the same views that president trump did whereas the thing that broke the camels back there was the president made a settlement drive area and secretary mattis understood that as a betrayal. he's got a good point to allies and partners there. we have to find somebody in lockstep with the president and be a reassuring and stabilizing force and will not try to undermine the president.

>> rebecca heinrich, senior fellow at the hudson institute. thank you for joining us. appreciate it. >> happy new year. the dow kind of sadly not this level bid for hundreds or so at about 2% technology. bank stocks getting slammed. 1.9%. tech stocks getting crushed. there is a time yesterday and down with it the rest of the day today. amazon down 4.5%. just that one company alone. more on "cavuto: coast-to-coast" coming up after the break. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk,

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small business or there is a little bit of a pullback in small business confidence in november. a pullback with the market recently sent out sober. is that a hand-in-hand type thing? a little bit. there has been a dip in small business optimism, but even with the optimism and confidence remains at historical highs. they do have confidence going into 2019 for the outlook for the economy. the number one issue is still finding the qualified workers. blake: how do they go about doing that? >> you know, they've got to compete. they are raising rages in providing health coverage. that's a big issue in terms of lowering health coverage costs so they can offer the benefit in order to compete. doing what they can to bring

people to firms then i've talked to a lot of members leaving business on the table because they can't find employees they need. blake: there is 7 million person gap out there. that's kind of one of the big issues we hear is many businesses just can't find people to fill those jobs. >> that's exactly right. sort of a reality check watching the markets right now. talk of a recession and wall street hair on fire type of panic and all of that is there's still a lot of great job opportunities out there. small businesses remain pretty taken they are looking at decent growth going into 2019. blake: as we start to file taxes in 2019, it will change the small businesses. do you think something small business owners realize will be a small benefit are not as much as they hoped? >> both 20% deduction

small-business c-cor, this is a pretty dramatic tax reform variable to reinvest in their businesses and that will continue into 2019 and 2020. obviously, the c-cor tax rate is permanent and it's a huge benefit to them. the benefits are going to continue over time. blake: karen carried in, thank you for joining us. blake: democrats find a big spending bush when they take over the house next year. about one week from today. there is debate over whether medicare for all push will pay off for democrats. lieutenant governor betsy mccoy says more more government isn't the answer. thanks for joining us. >> it's really dead on arrival and i'll tell you why. medicare for all his dead on arrival because all of these bills such as the one bernie sanders has proposed outlaw private insurance.

that means 155 million people would get their on-the-job coverage either through an employer or their union, which suddenly have to give up the coverage they like and go for medicare for all. by the way, and even the term medicare for all is extremely deceptive. it's really skimpy care for all. medicare pays about 89 and ensure changes and they can ship the unpaid cost on to people with private insurance. blake: here's the reality with democrats here this is the issue they won the house with. it was preexisting condition. they turned that election on a big lie that only democrats care about protecting people with preexisting conditions. the roost was that obama carries the only way to protect people with existing conditions.

in truth, it's not the only way. it's just the on fairest way and republicans have alternatives that would use general revenues to pay the cost of those with voiced in the whole cost on people in the individual market. >> democrats use that district after district famous candidate voted to repeal. >> but it was a lie. if you look at the republican proposal claiming that only democrats will protect people from preexisting conditions was a lie. in fact, you now see several dates, blue states and red states alike lifting the burden off individual premium payers and female wiles were going to use revenues to pay the added cost of people with preexisting conditions. premiums in the individual market down 22%. eight states are already doing it in the trump administration

is urging all states to do it. blake: texas had a big ruling from a judge in texas that gave the trump administration kind of some firepower for its argument that the judges essentially saying because the individual mandate was stripped out of the bill and the supreme court said you contact, that's how it justified. if you take it you can't justify it. >> you'll go all the way to the supreme court. lots of appeals ahead. no immediate relief for care consumers suffering from sticker shock. the trump administration is doing something right away. they have said and any state that permits it to thank you that are buying short-term health plans. renewable for up to three years. they don't offer maternity care or guarantee coverage for preexisting conditions. but they are 80% cheaper. that means tampa, for example, a family of three can get coverage

for $1169 instead of $12,000. the hitch is some solid states like california, new york and new jersey, democratic politicians say we won't let you have that choice. you have to have obamacare. it's like living in the health insurance gulags. blake: this is most likely going to the supreme court. thanks for joining us. appreciate it. another brutal day for the not back into bear market territory. continuing the selloff. the not back down 21% in the market high. more on "cavuto: coast-to-coast" coming up after the break.

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blake: have a little bit of a move in the last five or ten minutes. nasdaq is down as well. s&p 500 down too. the dow down or at near session lows, down 545 at the minute. meantime a big year for space exploration, from landing a probe on mars to a private space travel. that future possibility and the whole space force thing. lated ton anderson and tom jones

where this is all going and what role nasa place. welcome to you both. >> happy new year, blake. blake: happy new year as well. tom, let me start with you. it has been a pretty big year. we saw the cool landing on mars a little while ago. what is the future of space look like for nasa? >> it is a exciting year. there is resurgence in the u.s. spaceflight program. that boeing and nasa will test capsules and transport astronauts to the international space station. hopefully we'll see americans flying from america, from cape canaveral up to the space station, since the shuttle retired in 2011. that is huge true i am getting out from the russians at the space station. robotic advances at mars and asteroids. blake: what do you think the priorities should be? i'm looking at americans, suggested one poll, americans

put priority on going to mars, maybe say versus going to the moon or space station as tom mentioned? >> i'm a big go to the moon first advocate prior to going to mars. blake: how so? >> i kind of liken it to, family wants to go to disney world, disney world is a big deal. it has all the hype just like mars does but i think we need to go to a place like the moon to learn how to live and survive on mars. we have to figure out how to do all the wonderful things, get oxygen, get rocket fuel, get water from the soil and surrounding area. and that has to be done and tested. the infrastructure required to do that i think we understand that better. being only three days away from the moon with minimal communication delay i think is advantageous to testing out a lot of theory is, 1972, the last time we set foot on the moon. do we need to go back, tom? >> we certainly do.

it has been what, 50 years since the first moon landing. first time humans got to the moon just this week was a poll lo 8. it is too long. when we bo back to the moon we'll not only explore scientific reasons, preserve national security and access to space, and water uppermost as clayton mentioned. we have to be able to have water going to mars, that is essentially to oxygen, water drinking water we need to survive on planets. blake: space tourism, it is wild that some people will dip into the big wallet to pay for this. what is the future there hold and is the average person going to be shut out of this for a long time? >> well i would hope that the average person wouldn't be shut out of it for a long time, but boy, looking a the price tag on some of those trips it will a while. if we look back to the wright brother es and commercial aviation, how many of us if not

most of us can fly at least all around the united states for a reasonable cost my hope as technology advances, as we get deeper into this, more and more people will be able to afford it but i'm looking for a loan if i want to go right now. blake: a lot of us would be. just 10 seconds to you both real quickly, the space force that the administration talks about, good idea or no? >> space command in the air force bus this job, controlling axe ses to space and monitoring what is going on there, and i think what the president did raise the air force command bringing in a u.s. space command bringing in other services that is the right place to be. we don't need a new space force, new headquarters, new uniforms. we need a u.s. strategic command to operate and bring resources together. blake: tom, clayton, we have got to leave it there. it is interesting to see what in the world will happen in outer space over time. thank you to you both. always great to talk to

astronauts. appreciate you coming in. meantime still a big move happening on corner of wall and broad. the complete opposite yesterday. we took the market from charles payne. i believe charles we were down 300. now it is moved in the opposite direction, down 515 the dow at least. send it over to you. charles: thank you, very much, blake. i'm charles payne and this is "making money." a lot coming up. we were selling off after yesterday's record 1000 point surge. the investors need to know painful gyrations, even though they hurt the market looking for a bottom and ultimately looking for a catalyst. u.s. and china planning a face-to-face trade meeting after the new year. beijing, finally may be ready to give the president a fair deal, especially a lot of evidence that the economy continuing to slow down rapidly. democrats are quick to blame russia for met link in our politics where is the outrage when liberal americans very powerful, very rich, in high