100 people arrested. he was one of them. they have video evidence against robert kraft. stuart: got it. thanks very much. ashe. dow industrials up close to 200 points. our time is up. neil, it is yours. neil: stuart, for the time-being looking up month on february, so far so good for the market as havinglous i. it would mark the ninth straight week of advances for dow jones industrials. pace we have not seen. we'll get into the particulars. a four hours is long way to go. a lot of this is driven by optimism, wind behind the markets are better, stable earnings, even with slowing economic numbers still better than what is happening on the rest of the planet. we're deemed to be sort of a good haven or a good place to park cash in the meantime. we're all over it the next couple hours. let's getted read, "barron's"

associate publisher jack otter, mike murphy, and "the evening edit" host, lizzie wicked smart, mcdonald. think where we were on christmas eand where we're now, amazing. >> $1.02 market value has been retraced. that is the wilshire number. the question is the run up we're seeing now? will we get a favorable deal. what always strikes me about the trade talks, neil, how come the trump didn't put in -- i don't want to get wonky on you or eye glazing on but china was not is trade talks at all. neil: they always protested they don't deliberately do that we excited examples in the past. >> to keep their goods cheaper

and to sell in the u.s. that was a bargaining chip. what does this portend for the future? will we get a favorable deal? we know the president already reset the table in trade talks with canada, mexico, south korea. he is doing it again. the markets like it. neil: what do you make of that? >> i agree with most of what liz said but i will add i think any deal is favorable deal the fact -- neil: that is where we are now, right? >> that is where we are. if it falls off the rails, it will be bad for market. focus back on the united states. and stop talking about a lot of these issues that are out there. i think, so many other positive impacts rather than just the deal getting done. neil: i didn't realize, jack, the trillions gained back that lizzie pointed out, i did see the markets storming back from the averages and performances we're seeing. what sense do you get? are we getting frothy again? what is the real market?

what it was in december or what we've seen since? >> right now it does not feel frothy. it feels like we're on a nice roll. i would not call the moment it is going to end. i think i will say the trade talks are the second most important thing in the market, the first being interest rates. when powell speaks dovishly you see markets do very well. what the market fears rate hikes, you see it do badly. that even overpowers these trade talks. now they're both working together. we see optism in the trade front. we see powell being incredibly dove ish. there are care yes overs, we have progress in trade talks. not to get wonky like lizzie -- neil: i like when i have somebody on the nerd front here. this is good. >> the spread between two year and 10-year bond is very narrow. if that goes negative that is pretty good sign of recession -- neil: what happens if it is narrow though?

it usually portend as showdown, right? >> literally what is says the market is not predicting huge growth in the future otherwise it would be pricing higher interest rates. right now it is a bit of a goldilocks thing. the market loves cheap money. we see altria borrowing huge amounts and people are going up to the trough to borrow money. in the short term it is bullish. in the long term it is horrible, but one of these days we'll have a corporate bond reckoning. i don't see it happening tomorrow. neil: lizzie, i see delayed ipos are on the rain way in laguardia. the government shutdown stymied that for a while. what do you envision for that, interest lyft and pinterest are envisioning? >> we are part of cavuto's geek squad. mike murphy talked about this, parked on the sidelines because

of all the disarray and chaos. the vc crowd in silicon valley capital, what they have been saying, about the plans on the runway. they have been waiting for just more clarity what is going to happen and you look at the full screen right now, you see lyft making a real bold move to come out before uber so uber doesn't overshadow lyft with its ipo. is there interest in ipos? yes. is there more interest in their balance sheets? definitely. these guys are parking their money where the cash is. some of the ipos flopped miserably like blue apron. i will see how lyft will do. that will be a bellweather for the rest of the market. neil: mike, looking at best performing sectors, the industrial sector up 17% going into today. technology up 12%. 90% of the s&p 500 stocks are trading above their 50 day moving average. when you hear that kind of stuff, do you see that stuff

continuing? >> well i think if you step back a little bit, neil, you're back to levels that we were at, call it three or four months ago. rather than saying the huge rallies that we've had year-to-date, if you look back a little bit, we're just picking up a lot of the ground we lost when weigh thought the fed would hike rates four times. neil: are we back to the same multiples we were at? i don't think we're -- >> we're not up to the same multiples. we're cheaper today. why? because earnings are still going up, when prices came down, now you're trading call it a 16, 17 multiple, versus a 20, 21 multiple. you can argue the market as a whole is cheaper and companies like apple had a major trading selloff from 230 to 170. now they're trading very attractive, low teen multiples. neil: then there is the kraft heinz situation. it lost 28% from acknowledging the problems that it had, the troubles within its kraft and oscar meyer brands, getting them all together on the same page,

i'm wondering, what that is telling us? is it a reflection on the consumer? is it more just unique event to them? >> i don't think it is unique to kraft heinz. i think it is almost unique to the sector however. i think it's a problem with the whole consumer goods sector? you can trace it to the fact brands are not as powerful as they used to be and they're just not great invests. people were desperate for yield. so those solid consumer goods companies did well for years now. not so much now can i drop in one important ipo point? before the cameras rolled i got off the phone with a great statistic. 2016 ipos, performance to date now. up 11%. sounds great. that is the opening price. if you look at the close of that opening day price, the price that real investors get, they're down 5%. >> wow. >> investors should be very careful. mike can get in on good deals.

>> we run a venture capital fund. we look investing in these companies early. we're looking a lot of our companies to become public this year. the difference, used to be microsoft, apple, intel, oracle, these companies came public at roughly 100 million-dollar valuation. >> really early. >> if you could get in on the ipo it was real home run for you. fast forward to today, pinterest at 12 billion is that screaming buy? i'm not sure. done great if you were in the seed round. i'm not sure, or is uber worth 120 billion? neil: you're right. >> the market will tell us that. if you're an early investor, some of my can leagues, some of the people we invest alongside at rose cliff, they're getting a lot of liquidity. they can cash out. they can look funding other companies. i think it all plays back into the kraft-heinz situation today. that company in my opinion is being disrupted by startups. neil: could i, it kind of

follows something that jack mentioned. if you look at technology and internet companies, narrate it down to those companies that went public last year, i don't know what the price point, offering price or finish price of the day but they're up 33% since 2018. >> that is interesting. ipos you're talking about are apps. oracle, microsoft, they're big businesses. we're talking about apps coming public. there are question marks about that. i want to get back to kraft. there is stunning fundamental structural problem going on with the kraft story. 3g, loaded it down with ton of debt. took their eye off the ball what consumers wanted, the next vegan thing on the consumer shelf in the grocery stores, cutting costs laying off workers. that is structural problem for the packaged consumer goods industry. staple structural problem with the retail industry. private equity shop boatloading these companies with debt. the kraft story is stunning. they kitchen singed a gigantic

charge for their big brands is so astounding to me. it will make the next -- neil: caught everyone way off-guard. >> it was stunning. neil: what is the macro issue that we're addressing? >> it's a macro sense, what is going on behind the scenes with the private equity crowd coming in boatloading them with debt, swamping their shareholder equity. these guys can't get out from under it. they missed the ball on future trends what consumers want. vegan hot dog or vegan mac and cheese the oscar meyer, write down for that and craft amazing to me. neil: vegan hot dog, are you serious? >> that is what people want. the boomer wants. tastes like fabric. neil: tastes just like chicken. >> product kraft-heinz, a lot of them are loaded with sugar. neil: the problem is? >> most people now are seeing sugar something negative for them. neil: sure. >> there is major focus on entire country eating healthy. people are looking for

alternatives to kraft-heinz. >> people want ipos from a kraft brewer, not a budweiser. neil: craft brewer, i'm not telling you. thank you, guys, very much. we're finding out a little more about patriots owner robert kraft charged with soliciting prostitution. which don't know much more than that some surprises in new england after this. this is decision tech. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions.

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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. with who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. i love the custom ink design lab because it's really easy to use. they have customer service that you can reach anytime. t-shirts help us immediately get a sense of who we are as a group. from the moment clients walk in, they're able to feel like part of the family. - [spokesman] custom ink has hundreds of products for your business and free shipping. upload your logo or start your design today shouting] neil: hurt. now the associated press is the fear what happened in venezuela, one dead, 12 injured after venezuelan soldiers opened fire

in a clash over aid at the brazilian border. key points in and out of the country, would normally channel a lot of aid that is coming from, countries like the united states, led by the united states. not allowed in to venezuela. fox news contributor, fred barnes, they feared this day would come. now we have the saturday plan on the part of the government to enforce this issue, when we have recognized leader guide -- guaido, at least our recognized leader to accept the aid, what do you think? >> i think the whole crisis is in venezuela will be resolved and that is at all these places where thousands i think of venezuelans in the opposition are going to go, trying to open the border. and let the aid come in, the army, the soldiers, are rather,

going to fire on them or not, certainly, maduro, the socialist president, wants them to. the cuban advisors, will want them to. so will some of the generals at least, in the army. but they would be shooting on completely unarmed civilians. and if they do that, it will obviously be a mess. i think there will be a huge, hundreds of thousands of demonstrating in caracas, will they fire on them too? maduro can't win this way, but he can cause a lot of people to die. neil: some of those injured, were indigenous population, long before venezuela became a country state. some generals, not all, but three or four, who broke with president maduro, high time that the country recognized juan

guaido. that might start a chain reaction. what do you think? >> well, i certainly hope so. and indeed it could. most of the dissension in the military against maduro is with the younger officers, and actually there have been a couple of really pathetic coup attempts in recent years but, i mean this is when the thing will be decided, and i think, maduro will wind up being the loser. he is crazy to try to get his military to kill. it would have to be tens and 20s of, just many, many dozens of people, scores maybe, people being killed, innocent people, not armed at any number of these places that have been picked out by the opposition to open up the blockade. neil: then you have to raise the question what do we do as a country if we have all the aid and it is blocked at multiple bridge and crossings pretty much across, throughout the country

and we want to force the issue an help guaido get that to his people, then it gets really dicey. >> it does get dicey. could you always use your airspace and send things down by parachutes. that is not likely. this will be a, a crisis for the whole world if they are killing these unarmed people there and, we'll see if that happens. it will be up to the military. the militariliry is very important in south american countries. if the military in argentina had stuck with the prior president kirchner, then the election, we wouldn't have had an election of a new president in argentina probably but we're, we're way past that in venezuela. once a great ally of the united states, you know the people who were pouring into the u.s. from venezuela are baseball players. there are some of them -- neil: that's right. >> when you go to, i was in

chile and argentina last year and wherever you go in shops and so on there are refugees from venezuela. some estimate as high as 3 million people have left the country. neil: yeah. just draining the country economically as a result. we'll watch it closely, my friend. thank you very, very much. >> all right. neil: meanwhile the white house has another acosta problem, not that acosta, labor secretary alex acosta, going back to the days he was u.s. attorney in miami. federal prosecutors breaking the law, at least according to a judge back in 2007 with the jeffrey epstein case. blake burman at the white house with the very latest. what is going on here, bud. reporter: white house for the moment standing by labor secretary alex acosta. so too is the labor department. this involves immense amount of criticism acosta come over the last day or so as federal judge recently ruled prosecutors who

investigated or negotiated the jeffrey epstein plea deal broke federal law or at least the law in this case. acosta was a u.s. attorney involved in the deal which led to the billionaire epstein only spending 13 months in jail, despite being accused by dozens of teenage girls of sex abuse. criticisms have renewed that the florida judge, the prosecutors, including acosta at the time, kept the alleged victims in the dark while moving ahead with that plea deal. now earlier this morning i asked white house press secretary sarah sanders for her reaction and why acosta should be trusted to hold a position of his power? this was her response right here. watch. >> my understanding is of the very complicated case, something we're certainly look into. but that they made the best possible decision and deal they could have gotten at that time. but again that is something we're looking into. we'll keep you posted as we -- >> still confidence in the labor acosta? >> we're looking into the matter. i'm not aware of any changes.

reporter: here is statement from a spokesperson from the department of labor, it reads in part, quote, for more than a decades the action of u.s. attorney's office from the southern district of florida in this case has been defended by the department of justice across litigation in three administrations and subsequent attorneys general. they were approved by department leadership and followed department procedure. that is from the department of labor, since they brought up the doj, justice department professional responsibility has been looking into the case among criticism coming from both democrats and republicans. senator ben sasse saying yesterday that the department of justice should reopen the non-prosecution agreement as it relates to jeffrey epstein of the as this plea agreement was reached, it was current labor secretary alex acosta the u.s. attorney in the miami area at that time. neil? neil: both parties should be careful on this, right? obviously epstein had friendship with bill clinton.

we could go back and forth. it could scar both parties. reporter: epstein had many links to bill clinton and donald trump as well. neil: that's right. reporter: i don't think this is really anything to do with bill clinton or donald trump really. neil: absolutely. reporter: acosta's dealings and the deal that he struck and really what the florida judge took issue at, while the plea deal was being put together the victims, again, dozens of teenage girls, the alleged victims in this case were kept in the dark that the plea deal was being put together. that is just one of the issues that -- neil: but when the administration, seemed to be stating that these were approved through three prior administrations in that this was, he couldn't write off on it on his own without higher approval is that the case or do we mow? >> their argument is that other administrations, when they have been asked about this or when they have had to take up this issue, they have stood behind

the decision, stood behind the plea deal that was constructed but also the office of professional responsibility is now looking into this. just because something has been upheld for a decade or so, maybe, neil, doesn't necessarily mean it was right over the past decade or so it is all looked into right now. neil: just talk to the catholic church. thank you very much, my friend. meantime apple is getting it its own foldable phone ready. who says samsung should have all the fun or corner the market on that? fkc helping to roll out 5g networks across the united states. this is happening sooner than we thought in a lot more cities than we thought. after this ♪ help you find the secret to a stronger relationship? sometimes it doesn't take anything at all for us... just say "alexa, give me my free audible book," and your first pick is on us.

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>> welcome back to "coast to coast." one day after samsung, announced it is almost 2,000-dollar foldable phone sources say apple published a patent application for its own foldable phone.

the design, those files were originally filed back in october. so it essentially indicates that apple has been thinking about the design on its own for quite a while. the patent application described a play that hinges on a fold, could be in half or in thirds. the display can be using in anything. iphones, tablets, laptops, wearables, even mobile devices. i reached out to a apple for a comment. this is what they told me, hi, deirdre, thanks for reaching out we decline to comment on rumors and speculation. the competition gets more and more intense between apple and samsung. goldman sachs not shy, saying sam sunk's new foldable phone is problem for apple. the announcement, first of its kind for the moment, one of its kind for the market, justifies high-end shoppers what they look at, helps to rationalize that multithousands price tag. apple's stock little changed today.

what little change rather in the past 12 months. up sheetly right now. similar pattern with samsung. neil, back to you. neil: seems so big, these foldable phones. >> heavy. neil: heavy. that thing looked like a laptop. thank you very much, deirdre. >> sure. neil: fcc commissioner joining us leading the 5g network rollout, how big of a deal this will be. commissioner always great to have you. >> thank you very much, appreciate it. neil: before we get into the technology, i was surprised by verizon own rollout plans, that it will get very aggressive the second half of this year. at&t has cities up and running, maybe half a dozen prominently, maybe up to a dozen by end of the year, maybe more. this seems to be picking up the pace here. >> this we're very excited about 5g at fcc. this will be 20 times faster than the current generation. the new speed will enable all

kinds of new innovations from connected cars, internet of things, telehelp applications. to your point we saw 5g deployed in 14 cities last year. we're looking to see it in 30, 40 cities as well. it's a great story for the u.s. economy. it is a really good jobs story as well. neil: commissioner, i remember the leap when we went to 4g and remember things a lot faster. i'm told this will be instantaneously faster but what does it mean for average folks, what uses and applications it will have? >> 3g, 4g was a great leap forward. the u.s. won the race to 4g. what it meant was over $100 billion for revenue to u.s. based companies, the stakes are even higher for 5g. one thing helpful for consumers to think about, choice and competition for broadband.

this will have wirelessly, less expensive than wired connections same experience they could only bring with a paired connection. great competition, new competition for home broadband dollars. neil: do you need all new equipment for this thing? >> massive roll out for infrastructure across the country. that is focused at the fcc when we came in our regulations were a bit outdated we cut over $3.5 billion of regulatory red tape. that is enabling the private sector to push forward so quickly as you started with the 5g deployments across the country. neil: i heard a lot about the chinese are working on structures of their own some said beat when we have. technology attaches to those structures where we have the lead but i don't know what the

real deal is here but who leads in the struggle? >> how we won the race to 4g and all the economic opportunity that unleashed last send years. they look at 5g as a chance to flip the scrip. they want to be leader. neil: you've been very patient with my technological ignorance, what do they have we don't and what do we have they don't? >> part is deploying the actual network infrastructure itself. that is a big part of 5g. second, what do you build on top of the network. connect the cars, telehealth applications there is race to be first there because of capital needed to deploy these networks and where the companies will locate that will build these innovations. why the competition with china is so important. they have a very different economic system. they can essentially snap their fingers and overnight deploy new network infrastructure. we've been so focused getting the government out of the way to let the u.s. private sector invest and compete on something

approaching more level playing field. neil: trying to keep this secret, commissioner from my teenage sons. last thing i need helping them get more technology. commissioner, thank you very much. >> appreciate it. neil: we're getting a have you more details on robert kraft, the owner of new england patriots, he has been charged with two counts soliciting sex from a prostitute in jupiter, florida. he is 77 years old. he was frequenting a spa called orchids of asia in jupiter. they have videos of kraft, dozens of others involving sex acts in the jupiter spa and others. series of massage parlors were raided on the same day going back to tuesday. some of the stuff i can't repeat. we'll have more after this. mbc doesn't take a day off, and neither will i.

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neil: all right. steady as she goes or not?

investors wait to see what the federal reserve does now especially with the markets soaring. edward lawrence speaking exclusively to st. louis fed president james bullard. what have you got. reporter: a number of fed presidents are speaking inside. the a new report from the university of chicago with the market tightening the way it is now, inflation pressures are increase. my exclusive interview with st. louis fed president jim bullard pushed back against that. he believes inflation will come under the fed's inflation expectation this is year. he is a voting member of the fomc and he says we will not see a recession anytime soon. >> we're not predicting anything like a recession but i don't like the yield curve being as flat as it is. i would like to see it a little steeper. to me that would indicate markets a little more growth, a little more inflation growing forward. reporter: upper end of the federal funds rate is 2.5% now. chairman powell says that is possibly near neutral.

where do you see that? do you believe we're near neutral? >> i think we're a little bit above neutral, so we're a little bit restrictive in this environment. that has me a tiny bit concerned because inflation is still below target by our preferred measure. i would like to see inflation come up to target. i think, you know, i think we're a little above neutral, but i'm not, not so much that i'm worried about it. there is tremendous amounts of uncertainty where these numbers really are. i think we're basically in pretty good shape today. i'm just a tiny bit concerned about that. reporter: do you think the federal reserve moved too quickly last year? >> in public comments i said i would have opposed that decision and i argued against it at the december meeting. i thought it was one step too far. i thought we were taking extra rate hike we didn't have to do. given that inflation is still really very muted. we brought this muted inflation

language in, which i think accurately describes the situation. reporter: in set set of -- 2017 and 2018 the economy surprised both to the up years. unemployment went way down buy low 4% and we still didn't get any inflation. to me that indicates that, we've got inflation well under control here and we don't need to be preemptive trying to control inflation going forward. reporter: the last labor number 304,000 jobs. you're talking about 3.2% average hourly wage increase last 12 months. that is moderate range there, not seeing those pressures. >> wage numbers have been better and i think they are perfectly consistent with the rate of productivity growth in the economy plus the rate of inflation in the economy. that is right where you would expect them to be. so i think that is good for workers in the u.s. reporter: so being near neutral or a little above neutral, as

you said, do you believe a rate cut could come this year? >> yeah. i haven't penciled that in. i'm happy just to say we'll keep rates where they are and we'll see how the economy evolves going forward. i'm sure something will happen. maybe it will surprise to the upside or maybe to the downside but i wouldn't want to try to predict that at at this point. reporter: federal reserve would be two more rate hikes i think you're comfortable where is? >> i think we stay here for a while and i've been arguing for that. reporter: he is more comfortable with a larger balance sheet. he sees the unwinding ending before the end of the year. neil? neil: thank you very much, edward lawrence. nice interview. just to remind you as well, edward stressed it, he is a voting member, bullard, federal open market committee. his words and his insights carry particular weight especially now as everyone wonders what the federal reserve will do next. a quick peek at the corner of

wall and broad where the dow is racing ahead over 26,000, a level not seen since november 9th of last year. of course we know what happened a few weeks after that with the selloff through the christmas holiday season, that hit its nadir if you will on christmas eve. that was then a very different market, right now buoyed with trade talks and underlying economy, could be factoring with bookies who are betting that donald trump will be reelected president in 2020. the strong economy as a factor. right now if you are to get average where they're coming from, he is the 3-2 favorite, people who are betting money who will win the presidential election next year. that is even with a dozen democrats now joining the race to try to topple him. they are betting they won't.

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♪ neil: all right. i don't know if you gamble but people who do put their own money on the line are betting that donald trump will be reelected. he is a 3-2 favorite right now, with better than a dozen democrats already in. i believe it covers the period of bernie sanders joining the race. so isn't lock on a second term, these kind of surveys are very, very inconsistent.

they were nowhere on anyone's map in the 2016 election i might point out. be that as it may, it is an interesting development, people are placing money on this, maybe they're looking at money to be made at corner of wall and broad. a big come back for the markets since december. whatever it is noteworthy. to charlie gasparino, "wall street journal" editorial page assistant editor james freeman and republican fund-raiser, noelle nikpour. it is like catching a flash instant but what do you think? >> i can tell you one thing, things i used to laugh about in the past i don't laugh anymore and when you see donors, 6 million raised in 24 hours from, in increments of $27 on average, that tells me that is a vote. that is something to look out. neil: that is something bernie sanders is getting. >> but i think we've got the economy on our side and the democrats are forcing the narrative of putting socialism versus capitalism. so they're taking it back which

is really good for us, the strong suit on the economy, meaning that it is a pocketbook issue. once again, it is not really, looks like it will be health care and any other issues, looks like it will be pocketbook issues which is money. neil: what do you think, james? >> i think trump will not suddenly become highly popular -- neil: just need to be a little more popular than the next guy. >> exactly. what is the alternative? he won in 2016 because most places in the country could not accept hillary clinton whether it was ethical issues or she had run to far to the least. now it is even more extremism. you look at the emerging primary, a lot of enthusiasm for bernie sanders. they call it medicare for all because people don't want government-run health care. once they figure it out, they like it a lot less. the green new deal, it is designed to alienate people in the industrial midwest, i think he wins based on current trend

because the alternative will be unacceptable. >> you know what is interesting, when you look at wall street, excuse me the vegas stuff, they get it right a lot. you know, they, the futures trades on different -- sometimes they're wrong -- >> did they predict trump as winner -- neil: not in the middle of race. >> in the end they had it pretty close, he could do it. by the way it was really close. neil: one betting pool even had it down to he would lose the popular vote but win the election. >> that's what happened. >> they had it really close. remember, these are people, they're trading off this. neil: they put their money down on it. >> think of it this way, betting man, 10 grand to put on one of the clowns in the democratic party or the clown in the republican party, you had 10 grand, saying to yourself, as of right now, we don't know what mueller has got, decent economy, world peace, and then you look at the other side, they really want to change everything. neil: how do you get that money

back? i mean do you have to wait until november 2020 to make good on it? how do they -- >> depends when you buy it. i think like a futures trade, isn't it? neil: i have no idea. >> that is what i think it is. >> like a commodity. neil: i love you're feigning ignorance how the betting process works. >> i have never been to a bookie joint in my life. i'm saying bookies, these guys often have it right. barring mueller doing something crazy, who would you vote -- ask average person in the street, bernie sanders? >> look at amount of money. that is telling me that the narrative of the -- >> they can't wait, i was talking to the people in the white house today. they can't wait for one of these lefties to come up there. neil: be careful what you wish for. i can remember people in the carter white house eagerly hoping, praying that ronald reagan would beat george bush, sr. to become the republican nominee. we know what happened. be careful. >> i think real interesting deal

will be when all these democrats are lined up on the stage, they're going to be debating which one is the most authentic socialist pretty much and bernie sanders is going to win that. most of his donors, pretty much i would go out saying all of them, are not billionaires, millionaires. he really takes it from the people. >> imagine how boring debates will be. one thing about the republican debates, we used to have debate parties because it was so much fun watching trump and this one. brought more focus on republicans. this might turn off so many people, they will talk about the green new deal and taxes, people will be like, oh, god, do we really want -- >> put it back with the supreme court. neil: by the way, we did have one of those candidates, kind of a lower rung, might not know the name andrew yang, multimillionaire venture-capitalist, he got reaction appearing on the show yesterday talking about universal basic income. he started this. take a look who would fund this.

how would you pay for this? >> yes. the way we fund it, if you look around, see the headlines, amazon paid no taxes last year despite record profits. netflix paid no taxes besides record profits what we do put the american people in position to harvesting gains from artificial intelligence, self-driving cars and trucks, advanced technology, with that money, i call the tech check, we can fund the dividend for all americans. neil: what do you think of that? >> this is the best job market ever. we have a million more open positions -- neil: i told him, if you want to boost employment among disgruntled workers there are fewer of them now than we've had in decades. >> this is the basic problem. talking about all this haranging against the system and economy we enjoy this country. i think it has got to be a bad economy for that message to work. seems like a lot of people, elizabeth warren, bernie, his message hasn't changed in the last 50 years. but a lot of them haven't

changed it since 2016. same sort of grievance message -- neil: if you get enough disparate groups together, that is the argument. i keep pounding. you could be doing a lot better. that is a tough sell if the economy itself maintains momentum. market maintains momentum, pushing it out to november 2020 might be a leap but what do you think? >> you know what? this guy if he got a little momentum, would have to get a whole lot of exposure out there. man, who knew that bernie sanders is going to be torch carrier for socialism. who knew that donald trump would be elected president. you don't know if guy can't have a movement or cult following. >> you need to sell -- i found interesting about obama, with, what was his line again -- >> hope and change. >> hope and change, trump, make america great again. they sold themselves. i don't think tech check and 3-dollar phrases -- >> buying of votes. >> it is boring.

i just wonder if any democrats get up there, start talking really wacky stuff -- neil: be entertaining like espn? >> that is what people do. >> money in your pocket, charlie. >> they did it with obama. >> why wouldn't you like money in your pocket? >> the underlying premise is, president trump has performed i think better than we would have expected. >> make america great again. neil: i hope -- [inaudible]. we are hearing from robert kraft's people. spokesman for robert kraft's people, denying that kraft engaged in any illegal activity. he has been charged in florida with misdemeanor solicitation of prostitution. they say they have videotape of him paying for a sex act at this parlor. he says not so. more after this. ♪

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neil: all right, let's take a look at the dow right now up about 165 points if we maintain this momentum or anything north of about 32.5 points roughly, we

would be looking at our ninth straight week. that is the longest winning streak for the dow in some 24 years since the 10-week winning streak i'm told by charlie brady our stocks editor, going back to may 1995 when bill clinton was president. in the meantime, the s&p 500 is also looking at its fourth straight weekly gain, eight of the last nine and the nasdac advancing today, it would be its longest winning streak in 10 years dating back to may 2009 and that was a point at which barack obama was in office for just a few months. all ready hillary vaughn outside the trade representatives office in washington d.c. a lot of this is built on the possibility, i stress the possibility that a deal could be struck with the chinese, maybe sooner than later. hard to say but obviously that's what the markets are hoping for. hillary vaughn, are there hopes, what are you hearing? >> hey neil well the dialogue

between the two delegations is done because moments ago we just saw the chinese leave the u.s. trade representatives office. as you know china's vice premier is president xi's and he's now on his way to a face to face meeting with president trump where he will meet with him in the oval at 2:30 p.m. this is signaling a wrap up of what's been a marathon negotiation this week in washington, "the talks" though have been productive from what we're hearing, fox business confirming that several memorandums of understanding are being drafted. reuters reporting that one of those includes a 10-item list to bring down trade deficits with china, agreeing to a ramp up of purchasing u.s. goods including corn, soybeans and other products like semiconductors, both sides though are still far away from an agreement on things like force technology transfers and ip theft things the chinese denies they force u.s. companies to do. the u.s. wants china to also stop devaluing their currency and that's actually something

they've reached a bit of common ground on because there are reports that the chinese central bank also wants the country to stop devaluing its currency, there is growing concern on the u.s. side though that the chinese won't agree to any concrete enforcement mechanism and that's the key because without it, there is no deal. the u.s. also has caught the chinese trying to repackage old empty promises and kind of par lay them into what they see as a compromise with the u.s.. the chinese foreign ministry confirms that they have a timeframe blocked off for a meeting between president xi and president trump march 26-29. the white house though is not confirmed that meeting is happening but what we do know is happening in about an hour and a half from now, we will have the premier meeting with president trump in the oval office and we'll wait to see what comes out of that. neil? neil: all right hillary thank you very very much hillary vaughn in washington with the latest on those trade talks now investors of course have been waiting for this for quite some time right this has been

dragging on for the better part of a year and a half now, and so if they are close to something, then what? and senior reporter mary childs joins us, you know mary this added element of policing the currency and asking that the chinese not rig it that's always been the suspicion under democratic and republican administrations alike, the chinese say they don't do that, but that would be a tough one to get settled soon wouldn't it? >> i think so. i mean a lot of these you have a lot of inconsistency with what's being said and what people are actually able to enact and what mechanisms can you put in place to make sure things actually go through so that's a big area of tension i think between what are we bringing to the table and is it just a rebranded agreement that we already made like concessions that people already made i think apparently that's been a major issue with trump kind of getting offended some of the advisors so trying to enact these longstanding trends these long issues that have been with us for many many years as you say, how are you going to fix that immediately? the currency one might be a

little bit softer a little bit easier to get to the table on but there are a lot to work through. neil: you know mary it could be one of the cases now that you buy in the rumor or sell on the fact that rumor of a trade deal it could be potentially imminent and it fell on the reall of it coming to pass and then maybe looking under the hood and realizing that it might not be that big of a deal but i don't know where this all sorts out but the market, but if the chinese were to make just the commitment to buy more american goods, let's say everything from soybeans to cars, would that be enough from the sources you talk to, to encourage investors? >> i think so. i think you're right exactly that there's been so much whiplash in the market trying to figure out okay is this for real , does it really mean anything? does it get us where we need to go and so traders have been really on tender hooks trying to figure out is this thing over yet and you know it really has dragged out and weighed a lot on corporations, so i think investors would be really happy to see any kind of progress there, but it is the kind of

thing where you do look under the hood and say okay, global supply chains are so expensive to reevaluate and to move and a lot of corporations have already begun to undertake that, so you have this major seismic shift already underway, and so some of the things like buying more soybeans is that going to make a difference on the macro perspective yes and on sentiment yes but for individual corporations you really need to get into the details. neil: all right, we'll see what happens mary thank you for taking the time i appreciate it. >> thank you. neil: mary childs, meantime, the market itself continues to race ahead here. these games now have the dow looking like it's poised to have its ninth straight up week and the nasdac as well. the s&p has only had a one week interruption so this would be eight of the last nine weeks if it maintains these gains and year-to-date, we have the dow of about 16% a similar amount for the s&p 500 so can this be sustained market watcher jeffrey

cleveland following this. what do you think? >> well neil i do expect we'll make new highs in the s&p at some point during this cycle could happen later this year. the big factor for me, neil is not necessarily the trade story. it's two things. it's the question, are we on the cusp of a recession or not. i don't think we are. i think we've had chicken little s out in force, every so often, talking about a recession neil: you're right. i mean it's always out there and you can always say eventually a recession will come. well you're right but i don't know how imminent it would be right? >> you could always pick something right? last week or the week before it was retail sales. it's always something, but to us , the labor market looks solid layoffs fell yesterday very low levels on initial claims so i don't think the recession is on the horizon and then stocks can continue to rise. the second big thing i think is the fed. for whatever reason the fed has moved from a rather aggressive stance last year, you know, hiking in december, and

signaling they would hike again in 2019 now the fed is completely on the sidelines. not only they're not hiking but they've taken the balance sheet question off the table so qt that many of those same chicken littles were worried about that's off the table. neil: do you know what that worries me right? you could just read into that now here i'm sounding like what you're addressing and you're right, that if they're stopping draining all that money they have on hand, and they stop at 4 trillion versus the height of 4.5 trillion, that's not always deemed a good thing, is it? >> well, i'm a bond economist, neil and what they have is a bond politician that's composed of treasuries and agencies. they're letting it age graceful ly as we would say. neil: in other words if you have two year let them mature, and leave it at that. >> it's not that big of a deal. they sense that the market though thought it was a big deal and they said hey, fine, we'll take it off the table. i don't think it means a whole

lot for the economy or the markets, but they've removed that sort of impediment to equities and we've seen a nice rally. now, where things get interesting neil is if the fed does shift again, maybe later this year. i mean, the reason they said they can be patient is that we don't have inflation, and that we have some global issues to think about. if we do get a little perk up in inflation maybe in the middle of the year and some of the global fears including this trade story you were just talking to mary about then maybe the fed comes back into play and that's where things get a little rocky for equities. neil: i don't know what the consensus is these days maybe you do, jeff, that before we were betting on at least two rate hikes this year and then it was wound back to maybe one and now i guess none, so what if we go back to one or potentially two where we were going into the year? >> yeah, the bond market is telling you know rate hikes this year and even a slight cut next year, neil.

i think you're right at some point this year it'll shift. it always does. we ebb and flow in the bond market. neil: depending on the data right? >> exactly. neil: i'm sorry to jump on you my friend but is this mean home sales eased back a little bit, durable goods orders didn't come in as strong as expected, they're still up core capital goods easing back a little bit, the philadelphia fed survey a negative reading i know that one particularly is volatile, the atlanta fed similar volatility. it's not that the numbers are going south but they're not as high as they were so things are slowing from a peak. does that worry you? >> no, i mean, neil, the problem here is how do you, which indicators do you rely upon in realtime week to week, month-to-month, that really tell you the health of the economy? most of those things you cited can be volatile month-to-month and they're not the best most reliable so i would say look at the claims data, the initial claims every thursday, so lay off those stay low that's a good sign, and look at payroll growth

in the last three months it has averaged 242000, neil. i mean that is still a good solid run rate for the u.s. economy. that's why i put my money in realtime, and that tells us that we're still growing at a decent clip. neil: and earnings in the quarter we're in right now, a lot of people are saying it's going to actually contract a little bit. are you in that camp? >> i think earnings we expect will slow from a very good rate. last year somewhere 6-7% year on year-type growth but that's coming off a really fast earnings growth or rate of earnings growth last year. the same is true for the economy we grew about 3% maybe a little bit above in 2018. yeah, we'll slow 2.3% in 2019. this is still not a recession, neil. despite all the chicken littles talking about a recession we still i think will make it through 2019 without one and that's the most important consideration for investors. neil: we'll watch closely jeffly cleveland good seeing you thank

you very very much. >> nice to see you. neil: then there is this some volatility that could happen in venezuela tomorrow some violence today. one person is dead. 12 injured. just because people are trying to get their hands-on some aid, the government intervened what happens tomorrow when the guy we see as a legitimate leader of that country insists on getting the aid himself and is bringing along a few thousand of his best friends to force the issue? it happens tomorrow. what are we in for? after this. [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. state of the art technologyt makes it brilliant.

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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. neil: all right, it was feared and it happened today reports of at least one person killed 12 others injured in clashes between the venezuelan military and the venezuelan people, some, the indigenous tribes that are

along that border with brazil that the country shut down, so that aid couldn't come in. the former deputy undersecretary of the navy is with us right now. seth, you know, we know that the leader we recognize there is going to push this point by forcing aid and allowing it to come in, and it could be a big rucus. what do you envision? >> i'm not clear what's going to happen but one thing is absolutely clear and that is that the venezuelan people will have another demonstration of the monster maduro, who is preventing them from medical aid , food assistance, the kinds of things which they would have had if he hadn't been in power and tried to enforce essentially wrong economy so they will have a clear demonstration if maduro is able to keep the american assistance out and what stands between them and more

food that they need and more medicine which they badly need. neil: so the last time you and i were chatting about this you had reminded me how important it is to see what the military or at least the top-ranking military leaders do. i know there's a difference between the generals and the soldiers and all, but the generals almost have stuck by maduro so now there have been three retired generals who bolted, who broke ranks with president maduro and urged him to step down but precious few. what do you think is going on there? >> i think maduro uses his, the money what money he has well, which is to say to bribe the military there, and you have to bribe the people, not the lower- ranking officers, so he's been clever about that, but the three who you mentioned are demonstrations of cracks in his

armor, and you got to be careful about that, but i think that over the long run and probably in the short-term as well, maduro is history. neil: if this turns violent tomorrow, where you're going to see him pushing the point that he forcibly is trying to get that aid in, what do you think the soldiers who are at all of these checkpoints are going to do? >> well the question you're asking is will they fire on their own people. neil: right, right. >> and i don't think they will. neil: interesting. >> i think it could be mixed and that runs the prospect of civil conflict with people who are armed there, and that also underlines the importance of a resolution to this, which i think the trump adminitration is working hard and diligently to reach. the person that they have as their specially selected envoy

to venezuela, he's a terrifically competent guy, i can't think of anyone better to handle "the situation" directly for the administration. neil: seth cropsey, thank you very much. >> thank you, neil. neil: in the meantime we're getting a few allegations involving bob kraft charged with soliciting for sex at a spa in jupiter, florida, now he has already denied these charges. more after this. comcast business built the nation's largest gig-speed network. then went beyond. 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.

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neil: all right new england patriots owner robert kraft is in charge of soliciting prostitution and he says nothing of the sort, the fox news correspondent with the very latest. molly? >> robert kraft he's the 77 year old owner of the super bowl new england patriots for soliciting prostitution, he is

the most prominent name on that list charged after an eight- month multi-agency investigation into essentially human trafficking. the investigation focused on several massage parlors where women mostly believed to be from asia were forced to work long hours as sex workers, in sexual serving. the business that kraft was driven to was called the orchids of asia day spa. surveillance video was a big part of this investigation. take a listen. >> appearances of obvious money laundering in this case, it will be investigating further and much of our evidence comes directly from the businesses and also, from body worn cameras of our officers and also, surveillance that we had been conducting over the last several months. >> now, there were search warrants issued. there were investigators that went through the trash but the surveillance video is a really big part of it investigators

confirmed today they have video that shows kraft on camera receiving the alleged abouts. now these is misdemeanor charges soliciting others to commit prostitution. "we categorically deny that mr. kraft engaged in any illegal activity and because it's a judicial matter we will not be commenting further." and for those that reside in palm beach county where this alleged investigation is ongoing they've been issued a summons to appear but those outside of the county get a warrant for an arrest in florida, so robert kraft has received essentially an arrest warrant but there's no word yet on when if, how he might be eventually headed to florida to face these charges. neil? neil: all right, molly, thank you very very much let's take a peak at what's happening on wall street right now the dow up about 151 points here so it is well on pace to seeing its ninth straight week and the nasdac, the s&p 500 even though it would

be eight of the last nine weeks that it has experienced such a run-up here, and the likes of which we haven't seen at least in the case of the dow in the better part of almost a quarter of a century. not everyone is going along with a ride here take a look at what's been happening here to kraft heinz. it is down lost about a quarter of its market value the equivalent of more than $17 billion hit in the markets. the big loss down and reports of an sec investigation you add it all up and you can understand why the hours are going down. susan li with the very latest. >> yeah, still rather stunning to see a stock lose 27% of its value in one single trading session, so you're right that $16 billion of market cap being wiped off kraft heinz and that's causing a $4 billion paper loss for warren buffett's berkshire hathaway which owns around a quarter of this company. now don't forget it was merged back in 2015 kraft heinz for $43 billion through berkshire hathaway were the ones behind it

, so what's going wrong? well a lot is going wrong. they reported a loss in the last three months of last year. they've cut their dividend and they're also cutting down or running down the value of their oscar meyer and kraft brands which are signatures and looking to sell-off other under performing brands as well and they mentioned the target of an sec investigation over procurement and also their accounting standards which they say they will take a $25 million charge on, $25 million of course not a huge amount of money for a company of this size, but what's really concerning is a lack of growth. for instance they talked about to kraft mac and cheese and also their oscar meyer hot dog brand after years of of falling sales they had to spend a lot to market and get people to buyback in so they did see a bit of a turnaround but if you're in this health conscience era, selling jello brands and koolaid and hot dogs and pasta isn't going to reep you a lot of money and what

3g capital is known for is good at cost cutting but you can't cost cut to profitability if you don't have the growth. they also have a stake in inbev, and a lot of these food and beverage stocks that includes general mills, semiconductorrers, and the like and a ration of downgrades as well, this morning, ubs, stifel and the like being very quick this morning to cut their recommendations of the stock or the price target as you see there on your screen, but also a ripple effect across etf's as well 164, neil, own kraft heinz and we're down some 27% that's going to hurt on the bottom line especially for the average folks like you and me. well maybe not you but definitely me. neil: that's a huge write down if you think about it though and everyone was caught off guard. >> yeah, absolutely especially with their brand names like craft and also oscar meyer right but as i said it's health conscience carb avoidance world. neil: the sad thing about this world everyone is looking after their health. kidding, susan kidding.

thank you very very much. susan is of course very conscience of that. goldman is saying that the current path of deficits is manageable despite the fact that the combination of those what we call debt are now over $22 trillion. we owe that. it's on us, so how are we going to deal with that. detroit news editorial page editor nolan finley was one of the earliest crusade crusaders that articulated this. it's very good to see you how you doing? >> good to be with you neil. neil: so let's look at this here it barely prompted a sponsor a story when we got the latest figures. i'm almost seeing it as yeah, we hear about the debt and the deficit it's too boring, not a big deal. what do you say? >> well i think we're on cruise control to an economic meltdown here. $22 trillion is a very big number. on this current path in 10 years we'll be racking up $2 trillion

a year deficits and the debt service alone will cost $1 trillion a year. if we don't address it now, we don't start addressing it now, when we're in good times, when this economy goes down, when we enter a recession, i'm afraid we won't be able to react. neil: you know i'm also afraid that what happens when interest rates go up a lot more than the norm that we've gotten used to because the norm in reality is about double what interest rates are now that's just returning the norm. can you imagine that on $22 trillion in debt? >> no and it's going to push those projections upwards and as you said this is real debt. this is $67, 501 for every american, every man, woman and child. every baby born today will be handed a bill for $67, 501 and it's going up. it's going up every day, and you know, the chinese and the other debtholders aren't going to show up at our doors knocking any

time soon saying pay up, but eventually we're going to have to pay that back and there will be payback in the form of higher taxes, a lower standard of living and less government spending. we need to react now and instead we're doing the opposite. we have a lot of folks out on the campaign trail, promising even more spending, even bigger government, and as the people, we stand up and cheer politicians who say we're going to cut your taxes without cutting spending, or we're going to add all these great new spending programs, and the rich are going to pay for it. there's not enough rich and they're not rich enough to pay for all of the spending that is on the table already in this presidential campaign. neil: even if you were to go after the top 10% and tax at 100 % it wouldn't be enough to keep our entitlements going so having said that the other argument that has been raised is that this isn't as difficult as it would seem, despite the dire warnings, if we could just manage to control the growth of spending. i mean, i can remember when paul ryan at the type was just trying

to curb the growth in medicare. of course he was vilified as throwing granny off a cliff and what have you and that was from a guy who was simply trying to slow the growth in a program, and i think people look back at that, remember that and say no, we're not doing that. it's not worth it. >> well neil, if my aunt had different parts she would be my uncle. we're not going to control the growth of spending. we've proven that. we've got a republican president , we had a republican controlled congress, and they took this deficit up to $1 trillion a year. neil: no one has the will. what will it take though a crisis? what will happen? >> i think we as a people have to come to reality. we demanded this bigger government. we've bought into all these promises. we've kicked the can down the road in terms of we'll pay for that later. we're addicted to the credit card. its got to be us. we got to say no more. we either have to choose either to pay for government we're

demanding and we're expecting or cut it. we've got to pay higher taxes, or cut spending, and that means entitlements too. we've got to take big steps because $22 trillion is a very big number. neil: you know, i might be sound ing a little naive here but i think the american people are pretty smart, and they'll be straight shooters themselves, if you explained it to them not saying you have to break out the old ross perot charts but if you explain the unsustainability on this they will hop on board as long as whatever measures are taken or deemed fair to everyone but when you keep promising the pie in the sky and that this is fine, you don't need to worry about it, you're misleading them and eventually you're going to gouge them. >> neil how do you think a presidential candidate would do who stood up in 2020 and said look, i'm not promising you any more spending, i'm not going to take care of any more of your problems i want you to work with me and make the sacrifices.

neil: i like to think that person might do better but they've got to be a nerve touch ed maybe i'm being really naive here but i think with an intelligence committee argument when someone looks and says just as you are right now, says this can't happen folks and you just cast blame on both parties for failing to act on this and keep the politics out and say here is the math, here is the direction, bad direction. >> i don't know. you should see my e-mail today and yesterday, since the column ran. people are saying well why can't government just print more money you know, everybody is looking for easy solutions, easy way out , so i think we gotten too used to in our own life living off the credit card, the national debt doesn't scare us nearly as much as it should but if our personal finances were in this sort of shape if we were facing this sort of looming disaster, we wouldn't be able to sleep at night. neil: you're absolutely right well nolan, you might not take credit for this but you fillet

vital role in this country when everyone looks the other way you're that rare editorial page editor who says no, i'm going to force you to look at this and i'm glad you do. thank you. >> well i appreciate it neil and i'm rushing out now to stock up on kraft macaroni and cheese because i have no idea what i'd do without that. neil: [laughter] tell me about it maybe we could help pay down the debt with that thank you have have a very good weekend the detroit news editorial page editor imagine at that level talking about this in ways that his readers can understand in english and clarity and pointing it out whether on the right or the left that this what you're looking at for those listening on radio, a debt that continues to climb is not sustainable. more after this.

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>> welcome back to coast to coast. pinterest has filed to go public the company is aiming for june with a valuation of $12 billion the social media image sharing

site found in 2008 a little long for a start-up but bankers predicting this year could be the biggest year for companies going public that is if you measure in dollar amounts the biggest one on record 1999 around the dot com era companies collectively raised $108 billion last year if you looked pretty much half that $61 billion, lyft and uber also on track reportedly to go public in the next few months. electric car maker tesla beginning delivery of the model 3 in china at least a week earlier than expected. elon musk's company broke ground at a factory in shanghai, seeks to ramp up production in the second half of this year so having a factory on the ground in china is going to reduce transport and tariff costs. the auto maker says it operates at a 50-60% cost disadvantage to its chinese peers. and falling ending its exclusive partnership with the u.s. postal service yesterday it said profit and revenue this year would be

much less than anticipated and the company will still continue to sell stamps but it also wants to serve other carriers including fedex, ups and amazon. the stock is down more than 55% so far today. neil back to you. neil: all right deirdre thank you very very much. you ever wonder how rich is too rich? some people put it at 1 billion. some people hut 100 million. others 10 million, others at whatever you have. the debate over that, after this i switched to liberty mutual because they let me customize my insurance, and as a fitness junkie, i customize everything. like my bike and my calves. liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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>> isn't 10 million enough? like when does it stop? right? like at what point is it a moral that we're building jeff bezos the helipad when we have the most amount of homeless people in new york city? neil: that was alexandria ocasio-cortez casting a socialism shadow, at least with those of whom she interviews and apparently the 2020 field of democratic candidates who by and large are championing a lot of her messages while disagreeing over some specifics here. white house writers group consulting director here, former bush 43 deputy assistant brad blakeman, and progressive comentator, rashad richie.

is her view typical of the democratic presidential pack? some will argue over the details of the green spending plan, what have you but by and large, they seem to support the big spending plans, or am i missing something >> yeah, i think you're missing something here neil. they do not support huge spending plans because nobody has proposed any methodology for implementation for spending. in addition congresswoman cortez is a congressional district representative which means she actually campaigned on these same issues that she's pushing i think she has political integrity to do that and there are many folks who actually disagree with president trump, but they are supportive of the fact, or they at least respect the fact that he was bold enough to try to keep campaign promises , something that this district representative is doing as well, so i think she has a level of political integrity and i think it's quite refreshing to see somebody get elected based on the platform, get to congress and actually try to push that same platform.

neil: well you might be right about that but i don't know whether they all the prominent candidates are departing from her on this. by and large, they agree with the green initiative, they agree with some of the things she's been aspousing, they are offer ing everything from a higher rate on rich folks to, you know, a wealth tax and what have you, the estate tax so sabr ina, i guess my question for you would be whether she is bigger than her congressional seat would imply, that she is, i think, to rashad's point very honest in her approach she's doing everything she said she would. there's nothing new in this but it's spreading. >> right she certainly represents a growing cohort on the left of sort of this democratic socialism that i don't think represents all democrats but it's certainly a growing segment of the party and i think what's interesting is she sort of is a symptom much the way trump is. there are a lot of people while america remains a wonderful place with the land of opportunity, but a lot of people who look at basic things like

rising education costs, rising healthcare costs, rising housing costs as real challenges. what they don't understand and where the disconnect is that government intervention is what skewed those marketplaces and the last thing we want to do is inject more government and i think that's where cortez needs to spend a little bit more time studying her economics and political history and realizing that what we want to do is rollback that sort of capitalism , rollback that favortism, regulatory favortism, tax and subsidiaries and make sure we have an even playing field so that more people can achieve the lifestyle that they want whether it's to be a billionaire or just to be an average middle class american. neil: you know, brad i think republicans sort of dismiss her to their detriment though and i think that the passion she generates and i don't know whether that will extend to voters in 2020, it's clearly palpable with the democratic party and i can understand republicans sort of waving and

dismissing this, but i can also remember democrats when they waived and dismissed the prospect of ronald regan becoming the republican nominee because they thought he was too crazy to get elected president and he gets elected in a landslide so i'm wondering if republicans are sniffing too much. what do you think? >> no we shouldn't take her for granted look at the popularity she has beyond her district. she's one of 435 at a district that's supposed to represent 700,000, yet she's on a speaking tour all over the country, pressing these very progressive socialistic ideas that are actually being well received. i remember a time, neil, not too long ago maybe you do too where if you call the democrat a socialistic, know now they get angry if you don't call them that and they are trying to outdo each other completely eliminating the private healthcare market. kamala harris dismissed it and said we have to get over it and making a green economy that's know the competitive but actually our country just

doesn't make sense. now rashad should know they're talking big and he's right they just haven't told us how they pay for it. neil: we're getting reports that hillary clinton has been advising joe biden we don't know others but that's a clear sign if any that maybe she's not entering the race but she's not embracing some of the fire brand s who are already in the race. what do you make of that? >> well i make that you either have a hillary clinton or joe biden say they're running for president. i make that prediction today. in addition to that, neil there's a diversity in the democratic party that really should be celebrated. yes you have congresswoman cortez who represents some pretty extreme ideological values but you still have gate keepers like joe biden who are very popular even amongst the activist class of democratic voters because he's polling at number one in virtually every poll if he throws his hat in the

ring, so i think diversity is good. it's really american to be diverse, and you're seeing right now, the natural progression of a robust and vigorous democratic primary starting. neil: all right it's going to be a crowded one sabrina. who resonates do you think in the end? >> well i hope that we can run to the middle a little bit as both parties have clearly run to their sort of outer limits but one thing that i hope republican s are paying attention to is that suddenly representative cortez is attracting a ton of attention, especially among younger voters and especially among women voter s yet instead of just complaining about cortez they ought to be putting more female republicans up there who will stand for fiscal responsibility and economic growth and who can also resonate with a different cohort of voters and so we can have a real debate instead of all women who are entering congress being wildly progressive. i think there's way too much room. we need less complaining and more action. neil: all right, that'll never flyby the way, but seriously i want to thank you all very very

much. in the meantime we're a little bit more than a half hour away with the president meeting of the vice premier of china in the oval office. this could set the stage where the president hopes will be productive and talks have been going on for quite a while and the chinese appear to be willing to make some concessions which could explain what's going on at the corner of wall and broad and very likely a streak of advances we'll have more after this. what if numbers tell only half the story? at t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence.

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neil: fran fran, freddie mac lot what happens to private, public institutions. the latest wrinkle involves the white house. >> both of the big housing agencies, what we know is this, we're getting this from sources inside of the trump administration there is a rift

inside of the white house, inside the administration over what to do with fran -- fannie mae and freddy. to back off to allow reform to take place under mark calabria, recently appointed, has to get confirmed by the senate to the housing finance administration. this is a very interesting, complicated internal battle. he worked at the cato institute. he doesn't like the government is running fannie and freddie. and he thinks they caused housing crisis. treasury department is sympathetic to fannie and freddie, the old model. steve mnuchin would like to privatize this.

interesting enough, one of his deputies a guy named craig phillips expected to meet with people in the housing mortgage business expected to put out a white paper. they are pushing an agenda could be different than what can call kalabria. neil: how did they miss out on the punishments. >> that people say they were encouraged to buy bad loans. over the years, they have been scandalous cesspool. remember the accounting scandals where they had to rewrite earnings? i will say this. based on my story today, calabri a, the aids inside the white house, economic types want

calbria to lead the effort. neil: to lead what? >> reform it. the stocks are moving on information that they don't really have but are some fundamental principles he has. he wants them out of conservatorship. he doesn't want the government generally to run them. he is skeptical of their use. he probably wants a slimmed down fannie and freddie. it is unclear if he will release them as private companies immediately or late until he gets some guaranties they can't do what they did in the past that led to the financial crisis that is the whole thing. mnuchin approaches it differently. i think he likes the old model. he was business partners with some of the investors that have invested, that have bought the stock here, the preferred stock. so they will do very well if it guys back to the old model. there is a lot of back and forth. we'll have a full report on

foxbusiness.com next couple hours. neil: look forward to that charlie gasparino here. the dow is up 156 points. charles payne, here, december, what happened then? all forgotten now i guess? charles: i told everyone, neil, december 24th was the same as black monday. everything was identical. it was not a harbinger for recession. that might have been the bottom. neil: you did indeed. i remember it well. then i took that and said the same thing. go ahead. charles: thanks a lot, neil. good afternoon, everyone, i'm charles payne. this is "making money." coming up optimism that a trade deal between the united states and china is in the works helping fuel the market. dow on pace for ninth straight week of gains. i will go in depth, why the s&p 500, equal weighted part should be looked