block capitals. thank you, mr. president. i'm glad you watch the show. i was wrong. i'm glad you straightened me out mr. president, thank you very much indeed. i'm done. neil it is yours. neil: how do we know that is true. stuart: what? neil: he has been saying for weeks the wall is built. like me saying i will have salads. stuart: plate of cannoli is visible on camera. neil: i'm saying all right. i don't know. it's weird. but that is life, all right? thank you very, very much, stuart. following back and forth on trade. i want to thank my colleagues and friends connell mcshane, david asman, filling in while i was out here. kind of like the same old drill before i had left, that is the ongoing back and forth with the china trade deal that looks a lot more promising than an eu trade deal all of sudden does not. no one expected a problem with the europeans right now but the

latest news seems to be we don't like the progress that is being made or lack thereof on that front. we might be slapping a 20% tariff on a lot of german cars that make their way into this country and a host of others that could change the picture here. what we gain on the china front, we might lose on the european front. that would also affect south korean vehicles. that is a little bit more involved to explain. suffice it to say, that is not a done deal. a lot of people said, i thought we had resolved these differences? apparently not. all of that weighing on the dow right now but again, it is fairly tepid trading and much of the attention seems to be focused right now on nike and j&j that are accounting for disproportionately with the selling that hit the dow this morning. we're anomaly on the downside with the dow and s&p this week. that would rob it if it were to continue tomorrow of a possible ninth straight week of advances for the major markets. that might be in question. still too early to tell.

let's get the read from michael reed. we have veronique derugy. an ben phillips. we might score a deal or see progress with china and one might unravel with europe. what do you think? >> i think we've said on the show before and we talked about it, the u.s. would be better taking more unified front with china on the trade talks. if we're fighting europe trying to address the chinese issues, the big issues for the global economy, maybe a disjointed approach where we would have much better position if we moved with europe on china. neil: veronique, when i'm looking at this, maybe i wasn't following this closely enough. looked like the european thing is a done dell. i guess it is not. by extension to south korea it's not. what happened?

are they just dragging their feet or the president claims they're dragging their feet and this thing could be in peril? >> i mean the president is asking the protectionist europeans to give up on a big, on something they really care about, their farm subsidies, their farmers protection. while if it fails it is really a shame for european consumers. i mean it is really big what they're asking them to do. unfortunately, you know, what the president is threatening to do to us, american consumers, if the europeans don't cave is quite unacceptable. this auto tariffs on auto and on parts would actually be devastating for american consumers, american automakers, but also for the president who cares so much about exports, i mean the growth of the auto market in exports, this is going to jeopardize our exporting abilities of all of the cars,

foreign and domestic that are built here in the future because we're going to make them not competitive at all. neil: i am glad you just reminded folks, veronique, governments don't pay tariffs, people do. the onus would be on them. >> yes. neil: there are exceptions here. a lot of german cars made in the u.s. by extension, michael, wouldn't be affected by this, right? >> no. what i think is going on in both these trade deals are a lot of national security concerns that aren't necessarily bubbling to the surface or talked about as much. china is the most formidable enemy that the united states has ever faced. they are subverting our interests all over the world. they have badly manipulated trade and currency as well as stealing our ip for decades. then you look at what's going on with germany, allowing that the pipeline from rosneft, allowing huawei to build in the 5g

network, there is a lot more at play here than the cost of a bmw bubbling to the surface. it is expressed in tariffs that may or may not be the best deal. i think there are a lot of layers about this than are talked about. neil: you're definitely right about that. if they're really panicked about this, they have a funny way of showing it but then i'm wondering here whether the economic backdrop is still very sound, despite some weak economic numbers we got today from the philadelphia fed and durable goods and home sales and the like. the fact of the matter is by and large americans predisposition to spend remains unabated. maybe that could explain why samsung with its new galaxy phones is charging up to $2,000 for one of them, convinced that will continue to be the case step back from this, tell me how they're doing, how the american consumer is doing, the economy, what do you think?

>> i think the american consumer still doing well. the data we look at, there is a little bit of a pause in the data we've seen as you mentioned. the thing is, the global economy is slowing, it is slowing down. it is not turning into negative growth or anything like that this year. there are concerns on the global front. u.s. consumer strong. u.s. economy is pretty good. but the global economy is concerning us a little bit. neil: go ahead. >> i wanted to say, looking at consumption is the wrong way to be looking at this. what we should look at is willingness to invest in the united states because economic growth is what is going to be triggering consumption. and consumption in of itself is not a magical bullet for anything. i think what we should be looking at, willingness to invest in the u.s. i think unfortunately the trade war is, is taking a way a lot of steam brought on by the tax reform on this front. neil: one of the things, i looked at all the data, michael,

the consistent theme, that we had maybe given up on technology, when it looks like technology is doing just fine, thank you. i mentioned samsung, the optimism with new galaxy phones that are not cheap. lenovo in asia, surging 12% overnight on strong earnings report. it is almost as if, whether you're looking at the hardware makers, phone makers, or those who make the chips that go in any, and all of these devices, they're doing just fine. what do you make of that? >> so i would say the backdrop for the u.s. economy is excellent. what is, part of the reason why growth in the rest of the world is slowing is because of the tax reform we've had here, spurring more invest in the united states. we have had a little bit of softness in some sure spray numbers, but over the last few years, we added a half a million new manufacturing jobs. there are a million jobs more available, more than people looking for work. so, you know, naturally the technology companies will have some sort of a recovery.

there is a lot of money flowing into them. the price action, performance of these, i don't know necessarily a bellwether, seem like they will be leaders for now. the next story to come with a lot are the "fang" stocks, regulatory environment, the calls to break these up i would say that is around the corner. like, u.s. economic back drop, i would say is good to great. neil: go ahead. >> one important point just to add on that, we look at where the money is going. we look at market forecast for this year and next year, where is the money going. the options are not that great globally. so the option is the u.s. u.s. treasurys, we think that will be supportive for prices for u.s. stocks. neil: veronique, what gives me pause, a strike a deal with the chinese, i don't know if it will be substantive, remind they're china is throwing everything but

the kitchen sink to pure spur it along, it is not spurring along, if we score a deal, remains very weak, it can't deliver the goods or buy more of ours, what do you think? >> we shouldn't be surprised that china is not as powerful as we hear all the time. it's a command and control economy. we know that doesn't actually work really well, otherwise we would be advocating for this here. i also think it's a problem that in the deal we're going to likely be striking with the chinese, part of it is to use the state-owned enterprises to buy more of our stuff. that actually entrenches china into more command-and-control habits that they have had. so i think you're correct. neil: all right, it scares you, doesn't it, just having to acknowledge that seriously guys, thank you all very, very much. >> thank you. neil: we're following quite a few things with the dow down about 70 points,

disproportionately weighted in johnson & johnson and nike. if you haven't seen the video of zion williamson, the duke university star basketball player literally unraveled with him for a nation to see. that is not helping nike stock. the kind of thing you don't want to get a lot of publicity about, but they are getting a lot of publicity bit and not the good kind they want to see. copper and oil giving back some of yesterday's big gains but inflation issue with those commodities remains very much a worry with some in these markets. we'll have more. ♪ now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

that have made the rx the, crleading luxury suvhnology of all time. lease the 2019 rx 350 for $449 a month for 36 months. experience amazing at your lexus dealer.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments

in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. willy davis, who has alzheimer's. i decided to make shirts for the walk with custom ink. the shirts were so easy to design on the site. the custom ink team was super helpful and they just came out perfect. seeing my family wearing my shirts was such an amazing reminder of all the love and support that everyone has for my dad. - [narrator] check out our huge selection of custom t-shirts and more, for teams, businesses, and every occasion. you'll even get free shipping. get started today at customink.com. >> like in the words of homer simpson, doh. it was one of those moments. we really think what happened

here. she thought there was a 3 billion-dollar check written to amazon for this. we know there isn't. it was an incentive. when you look at the math, i'm not a math major, but $27 billion basically in revenues expected to come over period of time, 25,000 jobs lost, she calls them scraps by the way. neil: apparently didn't get the memo i didn't want any video of charles payne in the show or david asman or connell mcshane. that billboard was created prominently displayed in new york's times square, reading 25,000 lost new york jobs, 12 billion in lost wages, $4 billion in economic activity, thanks for nothing, aoc. referring to alexandria ocasio-cortez. she welcomed that amazon decided to bolt from the city, because it said that the $3 billion tax credits the company was getting

were coming at the detriment of new yorkers. not everyone agrees with that, including our next guest, republican new york city minority whip, joe borelli. what do you make of the reaction she had, this was really just paid for by billionaire-funded groups? that the jobs creators network is really just that. you say that? >> i wish the billboard was bigger. frankly i'm not concerned who the job network creators are, who their backers are, anything like that. the problem is that it is 100% accurate, neil. there are 25,000 potential jobs new yorkers will not get. these are real jobs. these are careers. people like aoc, other democratic politicians here in this city spent hours, weeks, months, years, trying to fight for minimum wage increases this is a company that wanted to come to pay four, five, six times the minimum wage, and really give new yorkers a path out of poverty. this is something, it just

fundamentally so sad that someone can wear their naivety own the sleeve and be proud of it at the expense of real new york families. neil: i don't think the critics of amazon ever thought in their wildest dreams that amazon would just say the heck with it, we're not going to do it. i don't think they were planning on that. now they're covering their heinies to say, net-net, this will be better now because the 3 billion earmarked to help the company will actually go back to new yorkers when in fact that is not the case here. >> right and that is part of the problem is that she poisoned the well for new york residents to give them this idea that 2.5 at the end of the day, some of that money could actually be redirected, but $2.5 billion would go to addressing real problems people of this city face. it was wrong, it was incorrect, it was inaccurate. she used that to justify why she was doing what she was doing. there is a real cost to be paid from not having amazon here.

you're absolutely right. people, people wanted to see if amazon will call the bluff and they did. they're gone. they have to live with that. neil: joe, do you ever worry a lot of conservatives make her such a, you know, an issue, congresswoman cortez, that their anger isn't much different than the left's anger at the president, that you can be so consumed with anger you only help the person you're targeting? >> i don't think it is about being consumed with anger over aoc i think it is about addressing the fact she really is one driving the message of the democratic party. she came out with the green new deal last month. it was wildly absurd in some of its, you know, fantasy ideas. and yet you saw all the democratic nominees for president, people who we probably should be taking more seriously as politicians than aoc, but they all jumped on her lead and followed her in the bandwagon. this is who the media has chosen.

frankly she tried to assume this role but this is who the democrats have championing their message and basically establishing what their plan of attack is for the next two years. neil: there might be something to what you say because some of those prominent democrats including senator durbin in illinois are stepping back from a lot of her calls, a lot of her more over the top spending plans. so it is as if they read polling data, other things i'm not familiar with, saying we better dial this back. what do you make of that? >> sure. i think you saw some blowback being as unrealistic as she was. someone like cory booker, someone like elizabeth warren, people who are progressives have more grounding in policy, probably came to the conclusion this was more fantasy than reality. it read like my son's christmas wish-list, quite frankly. i'm not surprised they read the tea leaves, saw this was probably not a good thing. same thing with cory booker, he came out, amazon would be

welcome in new jersey. he is not wrong frankly. neil: joe, always good to see you. >> thank you. neil: juror borelli. the dow is down 81 points right now. it is interesting to take a look how the treasury market, things like treasury notes and bonds, generally safe havens when things are volatile still remaining that way today. the yield backed up a little bit, not as much as you would think given the strong performance in stocks. which had eight up weeks in a row for the dow. that might be in question. it is still a little early, we have all the rest of today and tomorrow. that might be interrupted. strong economic data, there were some exceptions to that, we'll get into that in just a second here. if case you have any doubt about the strength of the american consumer. consider this, the samsung galaxy folks, are confident that americans are in a good position to spend, some of them might fork over 2,000 bucks for a galaxy phone that folds because they're convinced the consumer will not.

♪ read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

neil: remember a big deal when apple came up with 1000-dollar iphone? right now samsung is looking at a 2,000-dollars galaxy phone that folds. susan li with the details and why the company is betting you will like what it has to offer. hey, susan. >> neil, welcome back. the wow factor is back in the samsung fold. that is the new galaxy launch that took place in san francisco yesterday and everyone is talking about this foldable phone. it is pricey. goldman sachs says hey, you get a wow factor back. on top of that, look at technology. they're saying that goldman, samsung launch puts apple at a disadvantage. samsung is at least two years ahead of the other display competitors. that is possibly includes apple. so, yes the price tag, $2,000. it is for the early adopters.

what we call the ultrapremium speck. you expect it to hit stores on april 26th. they will sell a million of the units globally. very limited in terms of geography in the launch. they want this for early adopters, they want people to catch on to it. at that price point, not many people can afford it. maybe they will test the high-end ultramarket and mass market launch might come in the year 2020 according to analysts but look, samsung, smartphone shipments are down 8% the past year. just this month they guided the market for disappointing profits as well. this galaxy relaunch, shall we call it, new display of technology, this might be something that samsung need, especially as they go head-to-head in a shrinking market right now for smartphones, smartphone demand. neil: they're clearly doubling down or i say doubling up on this. interesting to see how it falls out. susan, thank you very much. >> thank you. neil: would you be willing to

pay for this? how many people might join you? let's go to tech analyst gene munster. what do you make of that strategy? i hasten to add it is unique, highest end of spectrum, in line with similarly priced apple phones but they are still in and around that 1000-dollar level and you get it souped-up with all the bells and whistles, some of the models are up to 15, $1600, what do you make of it? >> neil, before i answer your question let me just take a step back and think about why this is significant. the concept of a foldable phone is important because that is the evolution of where the smartphone is going and apple has patents around it. we expect few years, apple will have the phones, huawei will have the phones. this is landmark startup announcement but the it will be far from mass market. i want to put some context around that. apple last year raises the average price of the iphone by 26%. that was an average selling

price, if you look at overall product line of $870. to answer your question, what do we think of this, we put it in the context what happened to apple when they pressed the upper limits of the pricing expectations. as you know, hit the wall. if you think about a 2,000-dollar price point, reality is, consumers, the high-end consumers are really willing to spend 900 to $1000. this is orders of magnitude outside of what people will pay today, but clearly, the direction of where the smartphone market is going. neil: yet, huawei, if you think about it is still looking at cheaper, lower end. not to say the lower end of technology but not nearly as expensive phones. they have some that get up there but their strategy is, appeal to more of the masses. who is right on this? >> well i think it is, there are two different business models. one is a low-margin model. i think they both can be right.

i think huawei will dominate the lower end of the market. i suspect if you look at as this market evolves in foldable phones, let's say apple has a phone out in 2021 or 2022, it is probably a few years away. i suspect they own the high-end of the market. if you look at overall smartphone market, even though apple has only 18% share of the smartphone market, they control 65% of the profits of the smartphone market. you can see why both models work. where you don't want to be is somewhere in between. neil: all right. it is interesting what you said about the foldable phone though. a lot of people go back to motorola, and its foldable phone, beginning of all of this, my wife was a big fan of that. liked the simplicity of it, could fold it. i try to remind her this thing folded will be twice as big as that. that is being generous. i don't know if the market for

this but you're probably quite right in saying it could be the future but for people who want a laptop alternative, right? >> i'm glad you mentioned that because when i talk about this is kind of the future direction, trajectory of the smartphone market being foldable phones i want to put a little bit more context for that. neil: not a phone, not motorola flip phone like the days of old, right? >> this is not a flip phone but everyone won't have this think of this as probably a third of the overall market will have these type of foldable phones. undoubtedly, a large segment of the market will value something simpler, something lighter and smaller. and so i don't think this is going to be the lion's share of devices but clearly a growth area within the smartphone segment. neil: all right. but you're telling my wife more or less don't hold your breath for this, it could be a while for that segment? >> yeah. $2,000 is not worth it. neil: got it. >> sit tight.

give it a couple years. neil: all right. switch gears on other technology news, electronic arts, "apex legends" topped "fortnite" for record downloads. that is amazing "fortnite" has been ruling the roost undeterred. is "fortnite" losing steam or is "apex legends" so great they're both doing well? >> i don't think "fortnite" is losing -- "fortnite" has 200 million users. some of the top streamers, basically ea paid some of the top streamers like ninja to play apex right out of the gate. this 25 million users they had initially, they kind of had this base, this pool, to fish from, if you will, that was very different than when "fortnite" kind of got up and running. so when we think about which one has the critical mass today, i suspect that a lot of that is

going to shift back to "fortnite." one of the things, apex tends to be for more slightly mature audience. first person shooter, it is a little more graphic. broader parent appeal of "fortnite" will create more sustaining power for that platform. neil: we'll watch closely. always good catching up with you, gene. thank you very much. >> thank you, neil. neil: a lot of advertisers are pulling out of youtube right now after very, very chilling accusations. we're on that after this.

>> "empire" actor jussie smollett took advantage of pain and anger of racism to promote his career. this stunt was orchestrated by seminole let because he was dissatisfied with his salary. neil: incredible if true. police are saying that jussie smollett staged that attack to increase his salary. we'll keep an eye on this as the story develops. we already got a statement from

twentieth century fox television and fox entertainment, the creative forces behind "empire," the show that prominently featured the actor. we understand the seriousness of the matter and we respect the legal process. we're evaluating the situation and we are considering our options. so more news as it develops. meanwhile several companies are pulling ads off of youtube or content concerns, not over this but far more weighty and dangerous matters. deirdre bolton has the details on that. >> hi, neil. fox business has confirmed, mcdonald's, nestle, gmc, canada goose, epic games, maker of "fortnite," pulled ad money from google's youtube. a video blogger matt watson posted a clip accusing youtube facilitating exploitation of children. girls playing gymnastics, twister, or stretching where the comments became overreturn with

sexually suggestive remarks towards the children. watson's clip, showed how pedophile could click on the video and the company's files could recommend similar once. disney pulled ads when they were aware ads were running next to videos. youtube told us, any comment, including content that endangers minors is abhorrent. we have clear policies prohibiting this on youtube. we took immediate action by deleting accounts and channels, reporting illegal activity to authorities and disabling comments on tens of millions of videos that include minors. there is more work to be done. we continue to work to improve and catch abuse more quickly. youtube was in a similar position two years ago. proctor & gamble, at&t, pulled ads. their brands were appearing alongside extremist and violent content, a lot of which seemed to endanger or exploit children. those two companies and others since returned to youtube after

they were reassured that the company had made progress in flagging and dealing with problematic content more quickly. watson has his fair share of critics. some say he should have reported alleged pedophiles versus youtube tools versus drawing direct media attention. either way it is reminder, how important it is, how difficult it is to keep kids safe in digital world. neil, back to you. neil: stuff had been out there for a while. kind of late on the catch-up. >> it is indeed. now it is affecting the company's bottom line. neil: thank you, deirdre. world's largest heavy equipment auction for big rigs that pull stuff along underway in davenport, florida, where you find our jeff flock. hey, jeff. reporter: what a treat i have for you now, neil, something you have never seen before. look at these, articulating dump trucks, part of the auction that indeed the largest action, you

perhaps see the auctioneer there, the largest heavy equipment auction in the history of man. it is incredible with the number. putnamers about of up of numbers of items, this is millions upon millions of dollars. we have exclusively here on the fox business network, ceo of ritchie brothers, transformative ceo. amazing. >> jeff, thank you so much. we're delighted to have fox. a lot of our customers watch fox. thrilled to have you. we here represent the microcosm of america. ritchie brothers gets a congregation of small and medium-sized family-owned businesses. they start small. they grow. they grow big. so this is great. because a channel a lot of our people watch. reporter: i love it. we know a lot of folks bidding in there. these are huge pieces of equipment. this economy is booming right now. if we look at steel plant capacity right now, that is

booming. construction spending that is booming s that what you're seeing? >> 2018 was a great year, jeff. demand vastly exceeded supply for equipment. as we go to' 19, there are ups and downs in the stock market but this is the real economy. ritchie brothers supply meets demand in real time. people come here is this predictor how 19 will get shape? what we're seeing, my customers tell me demand is still very good. maybe not as good as levels of '18 but very positive. whether power plants, or digging underground utilities, very positive. reporter: walk me out here. that is what is on auction right now. >> articulated dump truck? reporter: you have bulldozers, you have frond end loaders, you have cranes, pretty much everything you want to build america is out here. >> yeah. reporter: real time, durable

goods orders disappointing in december. is that anywhere in your somehow? >> well i think, when we look at things, we look at really jobs, infrastructure spend and so much is on a state and local level, jeff, that we are actually sill getting positive vibes. when i talk to large customers, they're building a lot of bridges, lot of dams, lot of power plants. when i talk to medium size customers, jack horn, built a small companys went into wind, now into solar, business is booming. reporter: needs cranes. >> cranes. jeff, on lighter note, if you take all our aerial equipment, stand them up straight, they would go five miles into the area, 13 freedom towers. that has to say something that things are actually, it is not doom and gloom. it is positive. reporter: that is a very cheery forecast. i hope you're right about that.

>> thank you so much indeed. bye-bye. reporter: thank you. i leave you neil, with this picture. do you need articulating dump truck? if you do i could get one at a discount. >> maybe not at a discount, but we'll definitely get you a great value. neil: not at a discount, duly noted. who doesn't need an articulating whatever you just said? thank you, my friend, as always. that is reminder how strong the underlying economy could be, i don't know what is. talk about underlying economy, we told you about samsung, galaxy offerings, one, 5g foldable phone. you hear about 5g, the new technology is coming. verizon put pen to paper, give folks a running estimate when it offers time frame. it will expand into more markets into the second half of 2019. it is saying 5g mobility program will launch in the first half of

2019 but again in significant numbers, that the 5g ultrawideband network will be available in more than 30 cities in 2019. so if you want to pay up, pay substantially early on, just to be an early adapter, a lot of folks subscribe to that point of view. verizon giving you a time frame on that. randall stevenson, who was with maria bartiromo earlier today, is also putting the second half of 2019 on this. the real juice, everything that goes with it, becomes a predominant issue in 2020 and therein lies the battle for american carriers, and those who feed all of this technology who insists the united states has a significant edge here. the chinese disagree. i thought i would pass that timeline along. we'll have more after this. sho. big. life. moment. what is in here? ohh! oh, i hope it's a life insurance policy. what?

it's a sensible gift. protection for you and your family, nationwide has all the tools to help you find the right coverage. tiny baby shoes. so close. (peyton) makes no sense. babies can't even walk. should have been a life insurance policy. plus it would have been a great song. think about it, the lyrics, the beneficiaries... brad, where are you going?

♪ neil: all right, just reminder it is tax season. tax refunds, some of the latest data seems to conflict with earlier reports that refunds were shrinking. no way to get a firm number until its over. hillary vaughn with the latest details. reporter: neil as more americans file taxes returns are rolling in. the latest data of the treasury, last week's filings are passing levels for the same time past

year. low tax refunds made headlines when data showed they were down 8% for the week leading up to february 8th. just last week a surge of returns made up ground, bringing new totals above last year's level at same time. they fluctuate as returns flow in week to week. the slow down was caused by the 35 day government shutdown. and bigger checks on the way. anyone claiming like tax credits like earned income tax credit or additional tax credit won't see checks roll in to late next week. morgan stanley think there is is strong consensus returns overall will be higher due to the side-effect of the president's tax cuts and jobs act which caused with holdings to be higher. neil? neil: hillary, thank you very much. we've been looking at fannie mae and freddie mac stock prices. understand what is going on. fortunately my buddy charlie gasparino does.

>> reminding people like tax season is public service announcement. some people don't pay, forget, david dinkins, former mayor of new york city, forgot might have years to pay taxes. i will forget this year, maybe. anyway, we should point out stocks, common shares, both preferred shares of fannie and freddie are going through the roof on notion, speculation, a lot on twitter, not a lot of substantive, these things will be reformed in way that recapitalizes them, releases them to make them private companies. i would just say -- neil: they're like semi-- >> they're taken over by the government. they're in conservatorship. an arm of the government. neil: this is holdover from the meltdown. >> yes. from hank paulson.

i'm hearing, it will happen a lot slower than you think. if, at all. because we have a presidential election. you're talking about one of the biggest pieces of the u.s. economy, the howing market, and fannie and freddie insures, allows 10 trillion-dollar a year mortgage market to exist. i'm just telling you that -- neil: got got a way scot-free wh that whole thing. >> they have been making money for the treasury. obama administration, took all the profits from shareholders. didn't give them to them should release them as public company. there is one plan, a bunch of plans they're weighing. i can't tell you which one they will pick. they are looking, giving a hearing to the milken institution plan. essentially recapitalizing fannie and freddie. don't release them as public companies. these things are owned by shareholders, immediately. keep them in what is known as

conservatorship until you figure out their mandate because they make a pretty interesting argument. if they have a public purchase to create, allow average people to get 30-year mortgages, fixed-rate, something banks don't want to do. fannie and freddie buying stuff off banks balance sheets, that runs counter to being a company owned by shareholders where your whole mission is to maximize profits. you can't really maximize profits, do this homeownership thing, without the two running into each other like you take too much risk. i think that is what, milken comes in with -- they have bipartisan economists from what i understand. basically thread the needle, recap them, don't release them just yet. i hear that is getting a hearing. i can't tell you where they are going. calabria yaw has not been confirmed. for shareholders, be real careful. the stock, common shares that is the biggest risk of all, they're up something like 140% over the

last year. neil: is that right? >> amazing. neil: so focused how inexpensive the shares seem to be people are like having glorified penny stock. >> they are. there is a lot of trolling on twitter. that is moving the price. be careful. preferreds you have a better chance getting paid back and reform is not coming tomorrow. it will be, you know, will be steps. neil: while you're here, we're going to have one of the presidential candidates joining us very, vest shortly. >> which one? neil: to a man and woman they're talking increasingly, entrepeneur running for president, one of the earliest entrants. to a man and woman, most are signed on to this green deal, most are signed on to medicare for all. some college tuition for all. guaranteed income for all, what do you make, and what are you hearing from some of the top money guys about where their prospects are? >> that's a great question because s.e. cupp at "the daily news." she was a friend of mine over at

cnn, wrote a story quoting some of our stuff that we reported here the money guys are waiting for joe biden essentially to get in there. neil: is that right? >> yes. joe biden will thread the needle on that. i can't imagine joe biden goes for medicare for all. he might. i can't imagine he might go for the green deal. he might. neil: finesse isn't. >> they're hoping for a more moderate voice. he comes in everybody, you have eight candidates to the left. you have one moderate, presuming that bloomberg doesn't run. he is well-financed from wall street and he can pick up moderate votes. neil: who says biden even runs? what if he -- >> that is the big question. neil: his history as presidential candidate twice before is not good. >> she picked up something we reported on the show, when he is asked point-blank by his contributors, are you going to do it, he still says he hasn't made up his mind. he may make up his mine two hours from now. but that is the latest i got, he

is still not totally committed. by the way, neil, you have to ask yourself why is it taking him so long? either do it or no. neil: it is a big deal. you're still weighing your own presidential -- >> i'm still weighing whether i pay my taxes. that is a huge deal, you don't have time for this. sons italy looks promising. >> thank you. columbus club. neil: there you go. andrew yang, 2020 presidential candidate, will join us shortly why he is running. he was one of the first to announce. you might not know the name but you will be impressed by his performance. he wowed a lot of folks. it is how much he can wow the movers and shakers in the democrat ache party. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

and drive forward with broader possibilities. cme group - how the world advances. ♪ i'mth .. it could, if we took the time to listen. the most inspiring minds, the most compelling stories. download audible and listen for a change. you hardly ever play catch with the grandkidsalk? or show them how to give a good handshake anymore. now look at me... i'm all bent out of shape. (vo tv) if you have bent fingers and can't lay your hand flat, talk to your doctor. it may be dupuytren's contracture. (gary) see ya! (hand) you're all about friendly service, and you rarely shake hands? come on!

(vo) your hand is talking. isn't it time you listened? there are non-surgical options. take the first step and learn more about dupuytren's at factsonhand.com.

neil: you know, the only comparison i make the best of the old and when is duck, duck season, rabbit season. i don't know how you feel about consumer reports.

this time on the tesla model three, right now losing the vote of confidence say that no longer recommends the tesla model three. the tesla model were among the best on the road today. broke its own rating system stating we pray we've never seen a vehicle quite like it. and they were first that they stop consumer satisfaction surveys that showed users and buyers of these didn't go quite the same way, so we dialed out one back. and all of a sudden it looks at this model three and says that it's not up to speed so it's reversed itself again. whether you are inclined to buy, and consumer reports is seen it depends on whether you call a duck season a rabbit season. in the meantime, markets are falling now amid some very, very different economic indicators that seem to indicate a slowdown of sorts here. we party had that big into the cake when it comes to numbers

coming out of china appeared by and large i want to stress most of the economic numbers remain quite strong. the envy of the world will no doubt remind you when it comes to these ongoing talks with china over potential trade deal that it might be sorted out soon. let's get the latest of edward lorenz in washington. >> yeah, we'll have to see what happens on these two days of talks here they started at the old executive office building at 9:00 a.m. we do have video of the two sides sitting down face-to-face with one another and after 10 minutes the chinese got up and walked out over here to the u.s. trade representative office where the talks continued in earnest. they were followed by robert lighthizer who washed with treasury secretary steve mnuchin to the meetings here. reuters is reporting it will finalize six memorandums of understanding that will cover all the issues the u.s. has with china. they will also work out a 10-point item list that will

deal with the budget deficit or the trade deficit that we have with china. the memorandum is very specific. the forced transfer of technology in protecting intellectual property. the u.s. wants china to stop the ventura practice and make laws to protect companies in a file patents. another memorandum as well as open markets to our crops, financial services, china has started to change that to the treasury department wants to open it up for credit cards like we've been massacred. secretary of state mike pompeo say the chinese need to be on notice with this. >> the chinese need to acknowledge that this is taking place. they need to the structural changes in place to prevent it from taking place and then there needs to be an enforcement mechanism so the old world can know these things are continuing to happen. reporter: they will be specifically the memorandum of understanding also cover nonbinding tariffs or tariff

barriers that china has in place. they also want china to stop manipulating currency, something that china does tonight. finally reducing the deficit they will buy a number of goods and services from the united states. at the end of tomorrow come at the delegations are close to a deal, the president they push off the terrace deadline increase of march 1st. it has been said by both sides that both president trump and xi jinping need to sit down face-to-face to finalize the deal that could happen in march. neil: thank you my friend very, very much. let's get his read on this. ted, you have been skeptical about this whole euphoria around this for sometime now. it might already be big into the cake and we've got to calm down here pretty much, right? >> well, to a certain degree, you know, nobody would be surprised if we do a deal with them because everybody thinks

they will have been and i do too. i don't think that would be a surprise. i think it's in the price at this point. neil: let's get a sense if the president were to delay the imposition of the tariffs on more than $200 billion worth of chinese goods, that would be a sign of good faith. the question is how long he would push them back. what you think? >> i think he would continue to do it. they know they are a good partner. i think china knows that, too. it is just a matter of sitting down and finally deciding on the six items and what they want to do with it. neil: you and i talked a lot about what makes a good deal and i'm wondering the longer this has dragged down at the markets would be satisfied. it's the prospect of a trade war off the table. i get that. maybe because this has gone on for so long markets would want to see something sensitive. what do you think? >> they could. i know what you are saying.

you look at it for so long and say we went this long and only got a really small portion of what we thought we might get. we can have an impact, you're right. >> with setback to the market to get your sense of where we stand. we look at the data today. i know you follow this much more closely than i., but it was a little weaker than did. durable goods friend, the core capital goods front come existing home sales coming in less than expected. still stronger year-over-year, but giving the appearance that momentum is slowing. do you buy that? do you worry about that? >> it is the right of change. you can be up, but not as much as you were maybe a year ago. so the rate of change is what you want to look at and if that is declining which it has been doing now for two quarters best

to try and you want to look at. >> the rate of change is declining. it just means that the positive is much smaller than it was before. those are the first things you notice before you get in some tough times. neil: i like the way you worded that. well said. good to see you again. thank you. >> all right, neil. >> my next guest, grew real armies all things global macro policy myriam timmer. i apologize that there is a sense here that the momentum is slowing and actually the united states certainly very pronounced in asia, very pronounced in europe and madison had wins to worry about. when you think? >> yeah, that is exactly right. so, about a year ago the global

economy kind of hit a crescendo, very strong, synchronize momentum across the world. and then come in the u.s. kept going because we have the trifecta of fiscal stimulus tax cuts, d. regulation with the new administration. but the rest of the world was falling led by china and europe. as your previous guest correctly states, it is the rate of change issue. the economy globally is still growing, but it is growing at a slower growth rate than it was before. the u.s. kind of bucks that trend for a year, but now is joining the rest of the world as most people in the market had expected. when the economy speed limit is 2% and are growing a three-point i%, it's not really that sustainable unless you are picking up the speed limit and not so far hasn't happened yet. it is a slowing, but growing kind of mode right now.

it is still okay. slowing growth does not always lead to recession. the consumer is very strong. no excessive leverage on household allen's sheet. incomes are gaining. unemployment is low. the economy continues to hum along. at a slower pace than a year ago. neil: a lot of people said after last year maybe with the experience of the december market rout that the global market, investing outside the united states would be a more favorable strategy. it's not panned out that way thus far. what are your thoughts? >> i think for 2019 we should be able to see some conversions. 2018 was the vergence for the rest of the world was really getting slow while the u.s. was accelerating firing on all cylinders. 20 night team in 22020 won't

necessarily be a reversal of that, but with china showing some signs of maybe re-fleeting here and with the prospects of a trade deal or at least the truth of some sort i think earnings growth overseas can start to pick up a little bit while in the u.s. it is slowing from the very heavy pace from a year ago. that convergence for the rest of the world sort of joins the party if you will they think it's a very likely scenario. it is not one where the u.s. goes down in the rest of the world goes up. generally, everything was in the same direction of various speeds. neil: very good seeing you again. thank you very much. before there were a dozen democrat vying for the president me, there was one guy who was leading the charge. it's a crowded field, but he is still around. meet him next.

i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. i treat my mbc with everyday verzenio, the only one of its kind that can be taken every day. verzenio is the only cdk4 & 6 inhibitor approved with hormonal therapy that can be taken every day for post menopausal women with hr+, her2 negative mbc. verzenio plus an ai helped women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, or cause dehydration or infection. before taking verzenio, tell your doctor if you have fever,

chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. serious liver problems can occur. symptoms include tiredness, appetite loss, stomach pain, and bleeding or bruising. blood clots that can lead to death have occurred. tell your doctor if you have pain or swelling in your arms or legs, shortness of breath, chest pain, rapid breathing or heart rate, or if you are pregnant, nursing, or plan to be pregnant. common side effects include nausea, infections, low blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my metastatic breast cancer with verzenio. ask your doctor about everyday verzenio.

the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

neil: already come a crowded field the number of democrats who have announced they are going to make the running for the white house. before we have the dozen or so now and maybe a dozen or two dozen more can do during a presidential run of their run, there was this guy, the 2020 presidential candidate, entrepreneur, some success in the business world, which comes at a time. very good to have you. why are you doing this? >> i spent the last seven years creating several thousand jobs in new orleans and other in

their i.c.e. are the aftermath of the devastation in manufacturing jobs. the reason i donald trump one and 2016 is that which automated 400 million manufacturing jobs in michigan, ohio, pennsylvania, wisconsin and now my friends in silicon valley know were about to do the same thing to millions of retail jobs, call center jobs, fast food jobs in truck driving jobs here that's why he decided to run for president to help us manage this transition we are in the midst of. neil: your wealth comes from telling -- [inaudible] that's where a lot of it is. you're not a billionaire, but you're up there appears to mac that's very. definitely not a billionaire. i've had some success and certainly i've looked around and being this country needs people like me to step out. neil: all right, you are advocating and this is among many who are competing for the democratic nomination for the

universal income. the chew extended to pretty much everybody. have at it. >> that's right. if you look at the history of this idea, deeply american. where thomas paine was for. martin luther king was for it. milton friedman, with beating conservative economist. it passed the house of representatives twice under richard nixon and it was implemented 11 years later in one stayed where ferguson in $1,002,000 a year. that's a deeply republican state passed by republican governor who asked the alaskan people who would you rather get the oil money the government are you? neil: who would fund this? i would you pay for this? >> if you look around you can see the headlines amazon paid no taxes last year despite record profits. we have to put the american people in position to start

harvesting the gains from artificial intelligence, sell german cars and trucks and advanced technology. and with that money we can fund the dividend for all americans. neil: i know you've got the attention among people who like that idea, but have you pay for it? that would be over $2 trillion a year. he went the price tag comes down very quickly because were already spending hundreds of billions of dollars on 126 and 15 welfare programs which should be largely consolidated. a lot of that would get replaced by the dividends because people would vastly prefer thousand dollars in cash and conditional to the hodgepodge of benefits of the administration monitoring they currently experience. neil: but to guys like you really need to money yourself? >> at the right of citizenship and that means it's not stigmatize transfer from rich to poor. the great thing is we can build

a trickle up economy from people and families because most of us would go right back into the economy through main street businesses around the country. neil: right now there is an attitude on the predominant left-wing of the party which a lot of people say is the party right now, that that question and even guys like yourself who succeed on your own into a great dog, alexandria ocasio-cortez sort of seems to be the spokesman for that movement has said that every alien there is a policy mistake here and what did you make of it? >> you've got to look at the big picture or the third inning of the greatest economic and technological transformation in history. william ayers or of a national byproduct. neil: you agree with what they're saying. billionaires created a lot of jobs and a lot of opportunities. >> i think there are ways that we can more effectively have the american people benefit from some of the huge winnings that

people have experienced during the economy. neil: these guys have created a gazillion dollar enterprises across the country. >> and i am in the camp as you suggest that our system creates very, very wealthy people who have been fortunate, but they've done a lot of value creation. neil: would you raise their taxes? >> to be the focus on income tax is not the right way to go. 20 of jeff bezos is an example. just started amazon. he has over $100 billion in amazon stock. hasn't sold any. so there's no taxable event. so i think a wealth tax is not the right way to go. we have to join every advance company and how a value-added tax is much, much harder for big multinational companies to wriggle their way out of ink in their way out of. neil: many have such attacks. >> but you do see that they were

able to harness more of the big winners in terms of the corporate companies that are generating lots of profits. they were able to get the tax revenue. neil: 10% of italian citizens pay taxes even the high value-added taxation. this is the only thing i know it's an italian-american. you are a good intentions are going to manual stick americans with a good-sized bill? >> we are trying to create a dividend for adults where every american citizen is the owner and shareholder of the richest and most advanced economy in the history of the world. we can easily afford $1000 dividend that will go right back into the economy and create 2 million jobs around the country and grow the consumer economy by 8% to 10%. neil: you are talking about this chance to deal with truckers and manufacturing workers. right now we are at record low unemployment. key groups are lucky not the

highest employment levels we have ever seen. so a lot of people step back and say andrew is just missing this big picture is so terrific it would show up in the numbers. >> welcome if you look at our labor force participation rate, it's still around 63%, which is close to a multi-decade low the same as el salvador and the dominican republic. neil: a lot of republicans will counter that if you were to come the party's nominee and they've been there, done a lot better than that. >> take a look at the curve and it peaks around 2009 at hearts crashing shortly thereafter. if you look at statistics, one in five prime working age american menace out of the workforce right now and this is your expansion. these are the good times and we all know when the tide comes in we are going to see just what the reality is for many businesses and families. neil: let's get a sense that you have what you want.

the "washtington examiner" in an interview said we need to become both capitalist and socialist in different areas. what do you mean? you can't be both. >> i like to quote my friend eric weinstein has said we never knew that capitalism was going to get eaten by sun, technology. the 21st century lot of the economic rules would take for granted have stopped applying. a very successful popular company that does not employ many people and if it does employ people you don't have to treat them all. you can make an independent contractors. so the things we take for granted have broke and down and we have to start solving this problem by evolving our entire system. neil: so what is it that made you run for this? you're a young guy beside. have you discussed this with your family? what was their reaction? >> was talking to my wife the other day in the car.

as you suggest i'm a father, i've got two young children and i'm running because i want to keep this country strong for them. i'm the son of immigrants. my family benefited tremendously and i was lucky not to be born here and what to do do the exact same way about my sons. neil: we are inspired by donald trump getting elected? >> is certainly showed what was possible. as i said at the oak mean, i believe the reason why donald trump is our president is they have been these economic changes that have displaced many manufacturing workers. the democratic party for whatever reason is not trying to address those problems. they are attacking trump himself for the symptoms, but the disease is this pervasive economic insecurity as they make it harder and harder for americans to find meaningful opportunities. neil: so you need to get 1% -- to pull 1% at 65,000 individual

donors. you're already have both i guess. >> i'm going to be on the debate stage in june and july to the dnc has reached out to my team. they are very, very open. they want everyone to know -- neil: done a few of these debates myself. there is the so-called kids table. >> the jpi remember. neil: is it tough to break through that? structure as such it's very tough. >> i'm happy to say they've said they're going to end void the entire first city jb management. they are splitting into tonight and then the randomly selecting who goes where. so as long as remake a threshold, then you're treated on an equal footing and because they're trying to make it totally fair for each candidate. neil: joe biden is sort of like the elephant in the room. do you think he is for the

democratic party? >> certainly a lot of people are very enthusiastic about joe. i've had the attitude towards showing up on all such the more candidates that run, first the better it is for a candidate like me because of the fragmented field. but i'm also running to advance meaningful solutions and improve the lives of working americans around the country. to me, if other democrats are adopting a platform, that would be a tremendous win. neil: all of you right now have tremendous platforms. medicare for all, checks for all and a lot of people scrutinize how you pay for it. in the end, tell me how you're different than your other big spending colleagues. >> i've been a ceo and business worsened. i've met payroll many times that i believe small businesses are the back of this economy. but we have to face facts for a generation or two ago maybe someone would've started a hardware store, but now at

amazon up $20 billion of commerce every year, 30% of maine's tree stores are closing in the next four years. 30% of malls are closed in malls are closed in an annex for years and being a retail worker is the most common job in the economy. we have to start facing facts. the entire socialism and capitalism dichotomy again is breaking down. we have to try and take the best of both worlds and build an economy that centers around how people are doing. take the market can have them allocate resources in ways that would actually help families in main street america appeared neil: are also educated at brown, went to columbia law. smart is lit. but some go back and say you know, the guys just cannot lead us. >> you know, and i just spent time with a trucker in altoona, iowa. i rode around his truck to see what his day-to-day life was. and i wrote a book, the war and normal people that breaks down what is going on in main streets

around the country. i spent sears working in birmingham and detroit and cleveland. showing up in these communities i just wanted to help. i developed a real passion for helping the little guy or gal. i grew up the only -- the only asian kid, like a skinny asian kid who skipped a grade. i always felt like i had a thing for the underdog. i'm still a mets fan to this day as an example. it has been a problem. but who's the underdog now in america? the main street american worker getting shunted aside and we're not confronting it honestly. neil: will watch very closely. democratic presidential candidate. took a look around what was going on in the country and that i'm going to do that. a little more after this.

every curve, every innovation, levery feeling, a product of mastery. lease the 2019 es 350 for $399 a month for 36 months. experience amazing at your lexus dealer.

did you know that americans who bought gold - hello, i'm brad castillo. in the year 2005 quadrupled their money by 2012? even now, experts all across america predict the real gold rush is just beginning. don't wait another day. physical gold coins are easy to buy and sell and one of the best ways to protect your life-savings from the next financial meltdown. - [announcer] today the u.s. money reserve announces the immediate release

of u.s. government issued solid gold coins for the incredible price shown on your screen. these gold american eagles are official gold coins of the united states and are being sold for the price shown on your screen. - with over a quarter of a million clients worldwide, we're one of the most dependable gold distributors in america. let us help you add physical gold coins to your portfolio. it's easy and it's affordable. give us a call today to get started. (gentle bright music) - [narrator] today the u.s. money reserve is releasing official gold american eagle coins at cost for the incredible price shown on your screen. these government issued gold coins are official u.s. legal tender, made from solid gold mined here in america and fully backed by the united states government for their gold weight, purity, and content. do not delay, call now to purchase your gold american eagles for the amazing price shown on your screen.

gold is now on sale at prices unseen in years and this year could be one of the greatest gold buying opportunities of all time. call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost, for the amazing price shown on your screen. neil: i write, you've heard a lot about 5c, verizon will be a

big player. at&t other big american companies. tech analyst eric schiffer. as you know, verizon detailing when all this is going to start rolling out. aggressively the second half of this year, super aggressively next year. what do you think of what we are all in for here? >> a better experience on the consumer side. speed, obviously more data. ultimately the ability to leverage video in a far better way. you know, a better connection with those you care about them is being able to have -- whether it's live streaming directly, you know, one-on-one via skype or people on a group level. it is just overall they are really increasing the user experience. verizon has been very forward tanking and they're going to benefit because of it. neil: i did notice that samsung is going to feature a model due

out next month -- i'm sorry, april was 5g capability. it sounds like were all dressed up for a dance that there are no commerce yet. i wondering how that will do. would you think? >> is interesting. i think it is very risky for them to take this new. but i think it will be fascinating. this is a company that certainly does their market research. they spent a lot of money there. they certainly see a niche. apple is probably anxiously watching and i would say applauding the move because they had complaints for being too expensive for this last cycle, certainly china hurt them in terms of earnings. i think it is a wait and see. i'm anxious to see it. i'm curious to ask here and sit and i think many consumers are. neil: real quick a lot of people say who and how do you capitalize on this. they are bound to have some impact from this. what you make of that?

>> i think that there will be a certain group of individuals that obviously will clamor to it because it is new and different. it is ultimately going to come down to what the experience is like. there still is a market for bigger screens. i think this kind of triangulates for those that would want both data and also being able to have an experience that is more portable. i think they found a niche. i don't know what the sizes, but they are certainly trying to get ahead of apple as a more premium player, which i think is going to help their brand, especially given what's gone on the last couple years. neil: we shall see. good catching up with you. thank you. >> we've got a chance to talk to a number of presidential candidates. i wonder what david stockman thinks about it. now wants to take some of those candidates to the woodshed. something bigger than

themselves. after this. driverless cars. all ground personnel please clear the hangar. trips to mars. $4.95. hydroponic farms. robotic arms. ♪ $4.95. delivery drones or the latest phones. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. nofrstill, we never stoppedss wmaking it stronger.e. faster. smarter. because to be the best, is to never ever stop making it better. the new 2019 c-class family. lease the c 300 sport sedan for $429 a month

at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

neil: you know, i was thinking of david stockman when we had andrew yang on, the democratic residential candidate among many. the former reagan budget director david stockman doesn't distinguish much between the parties today. they are both inclined to spend a lot or that what we have and the trend is not good. good to have you. if there was nothing inter-gang was raising outside of more spending on different causes. >> we need to wake up and sell the roses. we are in year 10 of the longest business expansion history, increasing the deficit at the very wrong time. they say this $900 billion this year. it will be $1.2 trillion of borrowing at the same time the fed is beginning to shrink its balance sheet, which means they are dumping bonds.

they are now holding off on shrinking the balance sheet. they are holding off on rate increases are in my point is that finally catching up with us. we've gotten by with this for 30 years because the fed has been monetizing the debt, buying bonds hand over fist. the balance sheet of the fed is $200 billion at the peak of $4.5 trillion. >> it was bought up by the fed. that drove prices up coming yield down. the same you could get. you could get by with all of this. neil: that is what voters want. >> i agree. but now they're going to have to live with it because interest rates are going to normalize and it's not the $22 trillion debt we have now. it is that there is $40 trillion baked into the cake over the next 10 years. in other words, if you take what trump has done on top of the

baghdad city art inherited, you will be a multi-trillion dollars deficit year after year and were going to have a recession. this is the key point i want to make today. trump was elected and sworn in in month 90 of the longest business expansion in history. is 48 month term. that means month 138 will be the end of this term was never, ever been there before in american history. the longest one is 119 months. that was in the 1990s. much better time. we had tailwinds everywhere. surpluses for two or three years. the fed algae does have a trillion, not for trillion. china was getting up at pine lakes and booming. europe went to the single currency they were going to borrow and spend like no tomorrow. neil: look at that and say we can go a little blogger because in the early years after the meltdown was so tepid biscuit pushed out further.

>> i really doubt when you look at how much we have on the economy, the headwinds coming around the world. you look at finally delayed normalization by the fed. they'd get there, delay coming duck and dodge. finally interest rates up to 30 years are going to be going up. not down. they will next year or the hereafter. it's a matter of time. here is the reason why. for 10 years we have had a federal funds rate, which is what the fed rate is which dries overnight money. below the cpi rate, almost all of the time. that is the same thing as saying -- neil: i understand. let me get your take. when you are with ronald reagan were you just sort of spelled out.

he was surprised after his tax cut the deficits were getting worse as you pointed out because they were spending like crazy. but he was troubled by it. and then he got to a stage where he wasn't troubled by it because other advisers were saying look at the 20 million in jobs, look at all of this. don't worry about that. they don't matter. you say now decades later. >> a matter because finally the fed has stopped monetizing the debt. in 1987 it was about ready to explode in the face of the reagan administration. interest rates went from 7% to 11%. talking about the treasury bond right now. we have the black monday stockmarket crash among which was generated by the fact the deficit was so big and before that point, it was an honest bond market. in other words, the fed wasn't buying in all the bonds. interest rates were advising, private investment was squeezed out. the economy was overheating. about ready to have a big

recession. panicked when it reached 20%. entered a 30 year period of massive and maniacal bond buying by the fed. neil: it doesn't put out fires -- >> well, i would say it made a worse fire because they fire because they decided they are corrected and clearly. neil: when his day of reckoning? >> i think we are here. i think you get out of the market. the bond market, static market, put your money in cash and treasury. wait for the collapse to calm because it is going to happen. neil: you've been saying this for quite a while. they were saying that in the year 2000. the market dropped 80% on the nasdaq 100 or 50% on the s&p. they said that was a fluke. same thing happened. neil: the 2020 election.

>> or is no way this economy given all the headwinds in the world from a fed tightening, everything else going on, trade wars, and certainty, unpredictability of the unhinged fellow in the oval office, put all that together and are you going to make the longest expansion in history? i don't think so. and there the danger lies because if that collapses, and then they can add mickey mouse to it is still elect. >> we're big on spending. >> but here is the danger. there will be a recession. the deficit will be a $2 trillion. they will be desperate to pay for their programs come and deal this deficit. they are going to put taxes on the upper income and the wealthy like you've never seen before. it will be all over except the shouting. while taxes.

we've allowed the fed to create a massive imbalance in wealth. this is an free-market stuff. let me get one figure. 34% of the wealth. you get equality of opportunity not outcome. here we are 30 years later than the bottom 90% is down. two to one. that is not natural. people are going to be angry about that. when democrats get done, we are going to be back where we were when ronald reagan was trying to do with the legacy of world war ii taxes. and people who think everything is going to be roses and

unicorns. i look forward to your new book when it's out. in the meantime, my pompeii was hopeful going into the north korea talks. after this. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference calls. beyond traditional tv. to tv on any device. beyond low-res surveillance video. to crystal clear hd video monitoring from anywhere. gig-fueled apps that exceed expectations.

comcast business. beyond fast.

and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.

>> i remember as a young soldier patrolling the east german border. no one anticipated the wall would come down on the day that it came down. i am hopeful the world gets a day like that here where no one expects that north korea will take this action. i think the work that we've done, the economic sanctions in place, negotiations president trump has led. i hope one day we all wake up and get a moment just like the one the world had in 1989. neil: all right, that was secretary of state mike pompeo in maria bartiromo talking about history has a way of compounding the skeptics. germany between east and the west would ever come down and it did. richard nixon would go nowhere in 1972 and he did. the same could happen here. let's get the rate for national security adviser to vice

president dick cheney john hannah. when you think of what he saying? >> i am hopeful, too, but i can't say that i expect anything great to come out of this summit. having said that, i would say jog jog is always better than war war. but they have done in getting this extended freeze in north korea, both nukes and missiles is a real accomplishment that reduced the risk of war. but the reality is as we said here today, north korea is still capable of striking the american homeland with the nuclear tip icbm. nothing that has happened in last year's summit in singapore has reduced that brad, much less the threat to our key asian allies in japan and south korea. this upcoming summit in hanoi, we really need to see some

progress on that vital national security of active of the united dates. >> i'm wondering what counts as proof that they're going to do something. just not launching any more test is one thing and gray. but were also getting separate report that they hide a lot of stuff and can't be trusted. so, is the president making a mistake even having a personal one-on-one, given the fact that the north koreans haven't done a lot of the stuff you say. >> well, not only have they not done much, but i think the judgment of the intelligence community right now is since singapore they've actually expanded the production of nuclear weapons in their production -- neil: i am wondering, maybe the president is getting a sense of something that we are not. i am wondering what kind of signal it is sending a specially when soon after he meets with the chinese leader.

>> i think the stakes are high. the president is giving the world stage again on par with the united states. now he really has to get past the symbolism and the ceremony and get real commitments from cannes. what is he prepared to do with the real good faith down payment on actual denuclearization. what is he prepared to declare to the world? is he prepared to put a verified freeze on the production of any more nuclear weapons? is he prepared to shut down the enrichment facility. and then of course the president has to decide if ken satisfies any of that, what is the united dates prepared to give up in response to that that we don't lose that critical leverage of sanctions that we caught and allow kim to do with the kim family dynasty has done for 25 years, which is what the united states and end up as a de facto nuclear power capable of holding the american homeland hostage.

>> john, thank you very much. >> thank you coming meal. neil: more fallout on the 92 blowout that is hitting the stock very, very hard. how this video captured for the world to see has changed everything. after this. . .

neil: seen this video, zion williamson, a star player at duke university, considered one of the best basketball players in the world right now, potentially a huge nba star. his shoe ripped off mid game. he will be all right but a big embraerment to nike. one of the reasons nike shares are down. you don't want to see this happen. quickly, tesla model 3, consumer reports, hot and cold relationship with the company, it says it doesn't like it. there was a time a few years ago it loved everything tesla was

doing. that different from viewers views of one charles payne, viewer told me we love charles more than any neil cavuto. it should be all charles, all the time, we're deeply offended anytime neil shows up like today. mrs. charles payne sent that along. to you, my friend. thank you for all your hard work. charles: thanks, neil. appreciate it. i am glad my wife found a hobby. good afternoon, i'm charles payne. this is "making money." stocks slipping a little bit. disappointing economic data. investors weighing out come of the china trade talks. what is the true state of the u.s. economy? is it robust or teetering? nike shares as neil talked about, shares are falling after sneakers worn by a college basketball superstar explodes. we'll have details. i will go into in depth of