keto people lose a lot of pounds on keto diet. maybe i take it up. stuart: keto, keto my time is up, speaking of diets, neil, it is yours. neil: wasn't that the green hornet's sidekick? liz: kato. stuart: kato. neil: my bad. i'm coming back at you stuart, with the diet comment. that is another show another day. stuart: thank you my friend. neil: the soaring debate overweight watchers, what is dooming it today. front and center is the president meeting with kim jong-un in north korea. at least the president is optimistic. >> we made a lot of progress. and i think the progress was your relationship is really a good one. a lot of things will be solved. i hope, it will lead to wonderful, it will lead to really a wonderful situation. neil: it will lead a wonderful

situation long term. to former special envoy for six-party talks with north korea under president bush 43 joseph ditrani. ambassador, what do you make, i know it is very hard to quantify for support anything pleasanttririeses with are you seeing. >> i heard president kim jong-un want ad normal relationship with the united states, the president moved on it with the first summit. now the second summit. think i now we have to see the proof of kim jong-un's commitment to complete denuclearization, verifiable denuclearization. so i think the president is expecting, my view that kim jong-un is coming to the table saying i'm prepared to completely verifiably, denuclearization all my nuclear weapons and nuclear weapons facilities. neil: do you think he will do

that, ambassador? you and i chatted about this before, that is the only chit in his arsenal, if he gives up that, it's a matter of timing. he is no, no rush to do that, what happened to gadhafi and saddam hussein and be careful what you do, it could come back to bite you. what do you think? >> the difference here he want as normal relationship with the united states. he knows a normal relationship with the united states is going to get him out of isolation. it will get him foreign direct investment. it will change the whole complexion of north korea and give him security assurances he needs, having a normal relationship. the president made it very clear to give a normal relationship, you have to give up nuclear weapons and nuclear weapons facilities. i think some of us believe he made that strategic decision. as long as he understands you have got to give it up. it may take time, you're

absolutely right. it will not be done very, very quickly. there needs to be tangibles. i hope this summit. neil: sorry for jumping on you, my friend. >> sure. neil: obviously we have different definitions of denuclearization down to the timing of it. i'm not nearly adept as you with the international diplomacy issues, to knee denuclearization means no more nuclear stuff, that has to end. so i guess the only distinguisher here is the timing of that, right? >> the timing of that. immediately he could stop the production of fissile material. neil: we would have to verify that? >> we would have to verify that you put key on the issue here, verification. north korea would have to agree with robust verification regime. they did not do with his father kim jong-un that was failure of six-party talks. that would permit monitors not only go into pongyong and declared facilities but visit non-declared suspect facilities.

we believe there are other facilities besides those they are showing us. we need access to that. so that would be a difference. neil: get your take on the personal relationship these two have built. i'm thinking how act acrimoniout started. i'm going back in history, ambassador. remember how acrimonious it was between john kennedy and nikita khrushchev. they developed a quite a tight bond to eventually lead the way to, you know, missile control, all of the stuff we're talking about here, all these many decades later t was built on personal respect that was forged from a crisis. what do you expect here? >> i like what you just said. i like what you just said because in 2017 we're on the cusp of conflict with

north korea. we were that close with missile launches, nuclear tests with the president of the united states saying you have gone beyond the pale, you've gone too far. we're looking at a second summit, movement towards denuclearization and normal relationship with north korea that is going to be, if he were a legitimate nation-state. i agree with you. i think there is the element of respect that we've come that close. now obviously, our p the, kim jong-un is formed a very close relationship. that is important neil. trust. neil: absolutely. ambassador thanks for taking the time. i always learn a lot. >> enjoyed it, neil. neil: "fbn:am" co-host lauren simonetti what investors are hoping from the talks. they got a lot of competition for their attention today. >> one trader told me, neil, look, we stopped caring here on the floor about north korea after the first summit.

seems it was, seems like the temperature had come down. things calmed down, they weren't as worried. any long term goal here considered a positive, obviously denuclearization, but that is coming not in the short term. so just stability, just not test something considered a win. is north korea a business opportunity for u.s. companies and asian companies? absolutely. but to quote another trader you need patience and deep pockets if that is where we're headed. if you look at a map here, look at the asian economy. you have north korea, essentially the middleman between the world's second and third biggest economies between china and japan. morgan stanley out with a research note, neil, they say 18 million working age population in north willing to work for less than let's say vietnam. all-in, if north korea does open up, does denuclearization, they're pinning that economic opportunity at $9 billion a year. now to go back where we started,

where traders are talking about today, with did move the markets and i can prove it, is the michael cohen testimony and hearings. when he first came out he made accusations against the president you saw the market hit the low of the session right around 10:00, down 180 points. right now the dow is down 87 points. so they said, to quote, this one trader, once we realized this was really a circus more than anything else, we got over cohen as well. neil? neil: you never know how that all ends up here. a lot of noise out there. thank you very much, lauren. among the noisier items all of sudden pakistan and india, you know, going into sort of warplane battles with each other and it could get a lot worse. these two are always at each other's throats but what is accelerating right now the fact it could risk getting out of control right now. walid phares joins us. walid, who provoked whom here? each pointing the figure at the

other. india going into pakistani airspace in response to pakistani aggression, who start what? >> nothing has changed inches the early '60s where india and pakistan accuse each other over kashmir situation. india saying that pakistan backing jihadists operating in kashmir and pakistan says india wants to fly the airspace in pakistan. there are tensions between both powers but these are nuclear powers. imagine if russia and united states will start clashing, the escalation will lead to something that nobody can afford. same thing between india and pakistan. this is why the indians are sharing with us that they are nervous about jihadists inside of pakistan not really the pakistani state but operatives who could take advantage of the situation maybe seize nuclear or cause damage to the two

countries. neil: what do you anticipate here? obviously both leaders are trying to ease tensions here but i don't know, this could be one of the black swan developments no one saw coming, all of a sudden it is front and center? >> that's true. both leadership, despite the rhetoric and narrative they understand they cannot get to the level of exchange of strategic weapons. it cannot happen because nobody would win. now the two leadership are trying to lower tension. there are political forces in pakistan, maybe some in india, who are radical, who continue to see the conflict is historical. they need help from a third party. first third party is us, united states, who can help. the second party is china. china has influence in the region that could be a chinese-american initiative to stop the escalation. neil: all right, now, if we don't take the baton or do something, intervene to try to calm tensions here, either one of those countries could turn to others, right?

you mentioned china, russia, where do you see this going? >> you're right. pakistanis have strategic relationship between india and china. china and india are not close to each other. the russians are close to india. we have equal relationship between pakistan and india. a lot of meddling, a lot of international influence out there but what is important the control over their own borders and troops is what is the negative side of india-pakistan tension. neil: all right. we'll watch closely. it is crazy stuff though but it is escalating. >> it is. neil: i remember a couple months ago you were talking about watching this region. we probably should have paid more attention. walid phares. meantime stocks are down, not as down as they were earlier on here. we're looking for 10 straight weekly gains here. right now we're kind of down a little bit, just a little bit. remember we made up for that last friday when we were down through much of the week. just eked out enough to see a gain of a ninth straight week

for the dow and s&p 500, i believe eight out of the prior nine weeks were up for the nasdaq. that is going to be tested here with still a couple of trading days to go. we'll have more after this. nah. not gonna happen.

that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. it's soft... the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, and the door ensures a watertight seal, so you never have to worry about leaks. kohler's walk-in bath was designed with convenient handrails for added stability and safety. the wide, ergonomic seat is tilted back for comfort and stability.

it has a channel so water won't pool on it. and it positions you perfectly by the controls. while the heated seat soothes your back, neck and shoulders, warming up your body before, during and after the bath. kohler is an expert in bathing, so you can count on a deep soaking experience. honey, are you seeing this? the kohler walk-in bath comes with powerful, fully adjustable hydrotherapy jets and our exclusive bubblemassage. oh yeah, that's the stuff. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... and ask about saving $1000 on a walk-in bath, or visit kohlerwalkinbath.com for more info. would you mind passing my book there. once again, that's...

and financing is available for qualified purchasers. 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.

neil: all right. right now it could go either way. it is the middle of the week here with a dow, s&p 500 barely budging on the week, the nasdaq a little bit, if we end up next couple days with gains it would mark the 10th straight week for the dow and the s&p to do that and for the nasdaq it would be nine out of the last 10 weeks or s&p nine out of the last 10 weeks. so if you think about that and the backdrop about that and market doing what they're doing in face of all the worries with

michael cohen testimony, mixed testimony you're getting out of jerome powell the federal reserve, again back and forth with the north korea talks, might pan or not pan out what it might signal for the ongoing china trade talks, you have to wonder there is lot of pressure. we have a small business council president karen carry began, dan shaffer, first trust advisors chief economist brian wesbury. karen, is it your sense that one of the events will dictate the course of markets? it seems to come back to the prospects of a china trade deal. it seems developments superseded that, what do you think? >> the outcome of the china-u.s. trade deal in get of that sown up right away, hopefully moving forward, getting tariff issues addressed as well as certainty in terms of tariffs moving forward, also ip protection.

so i think that, that issue in particular is very important from a small business and entrepreneurship perspective. but on the korean front i think that is important, engagement in the region, a more stable world is a more peaceful world and that provides great certainty for the business community as well. but definitely u.s., china, that is sort of the issue and again if we get resolution there, i think it helps fuel certainty and growth moving forward. neil: brian, what happens if the president leaves vietnam with no firm denuclearization commitment on the part of the north koreans? now he has gone and met with his north korean counterpart more than halfway. he is the one who traveled nine or 10,000 miles to get there. he took a two-hour train ride, whatever, wonder one thing to do that, travel halfway around the world to get to sing is pour to get this started. quite another to gather again

seven or so months later not get much for it. what do you think? >> well you know, i actually think, i mean if we really look at this from kind of 30,000 feet, the movement of north korea toward the rest of the world is really kind of amazing. and so i don't know whether they have a firm agreement on denuclearization or not but my belief north korea for the first time in a long long, long time, is actually engaging with the rest of the world and i have to give the president a lot of credit for doing that. i do believe we're moving toward denuclearization and i think that's good. on china, let me just make a couple of comments. china, back in september, and this was not widely reported, they cut tariffs on 1585 different items. they went from an average tariff rate of 9.8 down to.5.

that was last september -- 7.5. since that time they actually cut tariffs a couple times more. this is why, one of the key things we pushed off this 25% on $200 billion worth of goods. so i look at all of this as really good movement toward a freer market and a more open society. and i think that is one of the reasons that the stock market has rallied back. i actually think it will continue to move higher. neil: all right, dan, you're not in that camp that necessarily focuses on these talks a much as underlying market itself is, which by your math is rich, right? explain where you're coming from. >> well i don't think that the talks are going to mean anything for the markets. i think markets have been artificially move up by the central banks all over the world. neil: if they imploded it would mean something for markets? >> just for the talks on a second, neil, i don't believe

that two communist countries with leaders that are going to be in power forever are going to make a deal that is going to be very sweet for the united states. i think that they will play this, they will play president trump and the united states. they will go along with this and then they know that trump is not going to be in office forever. they know there is a lot of turmoil in the united states to get rid of trump. so they will kind of take their time, go slowly with this. what the stock market is going to do, the stock market will look at this, it doesn't like uncertainty of course but on a technical measurment where the stock market has rallied on the s&p for instance at 2800 or 2810, that level is 78% retracement from the sep high to the low -- september high to the low end on the 24th. i know you don't show charts i create it times out perfectly from 1937, with a 90% correlation to the s&p from 34 all the way to where we are now.

neil: what does that mean? what is correlating? explain that? >> correlating is the s&p movement to the current s&p movement adjusted for about one month right now. if the you put the charts on top of each other, look at 1930s pattern, look the pattern we've been now for last three years. neil: so that pattern wasn't very favorable back then? we knew that was going. >> that's right. that's right. the research, the research, well, i'm sorry, research shows that the great depression occurred mostly in 37 and 38 when the federal reserve started to raise interest rates. and this is the same scenario that we have today. the market, i think is way overpriced. i think that the central banks, especially the bank of japan, some of the others, they're actually buying stocks. we're not allowed to do that but somehow, this market is being lifted up with earnings not supporting it, with unemployment

not supporting it, with wage growth not supporting it -- neil: unemployment is very low. earnings have been very good. >> that is what they tell us, neil. they changed the formulas how they tabulate unemployment. there are two methods. neil: we have not changed how companies report earnings. karen, i do understand a little bit where dan is coming from on this, but do you look at underpinnings as negatively as he does, what do you think? >> what we're hearing from small businesses and our members in terms of, what they see as growth prospects moving forward, financials look really great. they continue to invest. they continue to hire. they're really solidly confident about 2019. you know the biggest problem is finding employees that you need in order to take advantage of growth opportunities. obviously there are pressures in terms of health insurance cost. neil: right. >> these trade tariffs, these types of issues but for the most

part they feel pretty positive, they have a lot of opportunities moving forward this year. so i mean it is looking pretty good. again we have to get some of these things out of the way and even more some pro-growth policies. there is some good bipartisan ones in terms of access to capital, reducing health care, those type of things, if we get going on that would be really great for small and my sized businesses. >> neil, can i interject here? neil: yep. >> 10-year treasury is trading 2.66 right now. when the market was doing great the treasury was over 3%. if everything is so good why are short-term rates and long-term rates coming down? we have a flattening yield curve? once that -- neil: that is the case for 10 years now, right? >> no, no. >> the market -- >> three years. >> market is up 19% since christmas eve. 19%. you can't deny that.

and neil mentioned this, earnings, earnings are what is driving stocks. earnings are at all-time record high. the fed started tapering back in 2014-a 15. they have reduced their balance sheet. the market continued to go up all this talk that qe created a sugar high and now the fed's taking it away, sugar high will collapse we'll go back to 2018, the last three, four years proves this utterly wrong? >> i disagree with you. >> unwinding it is not going to drive the stock market down. the last four years proves it. neil: thank you very muchs fair and balanced read of bull, bear, in between. investors eye michael cohen hearing very, very closely. not surprised what he is saying. it was well-telegraphed he would paint the president in a very bad light but where it goes from

here after this. 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. and it's only from fidelity. open an account with no minimums today.

♪ >> it was my experience that mr. trump inflated his total assets when it served his purposes, such as trying to be listed amongst the wealthiest people in "forbes" and deflated his assets to reduce his real estate taxes. neil: all right, michael cohen, epicenter of the political world today, speaking on capitol hill, giving a rather disparaging view of then businessman and candidate trump all the way to president trump and conducting a lot of illegal acts he says. white house has dismissed his charges. half a world away the president is in vietnam trying to cobble together denuclearization agreement with the north koreans. anyway, this motion that the president might have inflated his assets, charlie gasparino and i covered the president, during his business days for decades, and that was a common approach where he would argue

with folks at "forbes" about the wealth he had, usually saying "forbes" understated it, he was savvy enough, depending on business dealings to play that number. do you believe that? >> yes. by the way we're dating ourselves, neil, know the reference had valach i-papers out there feel to it. for all you young ones and millenials, look up the valach i-papers. neil: that is fascinating. >> joe valachi was a former made man. neil: non-italians would appreciate it. >> here is the thing, i have known michael for a long time. i had various dealings with him, not intimate dealings -- neil: why would he called the trillion trump's fixer. >> that is what he used to do. neil: explain that. you know the guy very well. >> this is what he used to do. you're a subcontractor. a friend of mine he was here, would tell you this. you're a subcontractor.

donald trump owes you 100 grand, michael cohen calls you up we'll not give you a 100. i know we signed documents. we'll give you 80, we'll sue you, you sue us, blah blah. people would settle for 80. i know a guy took him to court and won by the way. that is what he was. it was interesting. by the way the conversations would be a lot more thuggish than just that. he would also threaten reporters and things like that. but here is what is fascinating about michael is that he did all this, and you know, when he went to pitch his book deal, he went -- this is earlier in the year i believe. i did some reporting so check foxbusiness.com. neil: when cohen was pitching his book, right. >> he started about talking about all the thuggish stuff he did about trump. book publishers, would you put that in the book? no no. covered by attorney/client privilege. neil: not today. >> not anymore. why a lot of book publishers

washed way. he got one deal and at the end the deal fell apart. he was his fixer. everything he is saying is true. i don't care what anybody says. neil: that is your opinion. >> no, no. i know a lot of stuff what he is talking about. my question is -- neil: republicans on the committee are saying this is very interesting, you're going to jail for lying to congress and now you're back here being treated as hero. >> he is going to jail for lying to congress stuff he did about donald trump. i would say, except for nuanced stuff, i would say 99% of what he saying is accurate. the question will it lead to impeachment? are these impeachable offenses? probably not. will it lead to any republicans changing share votes given the far left loony tune stuff going on in the democratic party? i doubt it. neil: all of this has been out there a while. >> a little bit. some of it. neil: the only smoke i learned a lot of this was occurring as president. this is first time we heard

signed checks and all that stuff. i don't know how much of that is true. >> but so what. he signed a check. neil: i'm just saying do you think that moved the needle here? >> no. where it will move the needle. neil: perry mason, old analysis -- >> who was perry mason again? story get the guy. neil: burr, william burr. >> william burr, right. neil: you figure it out. >> yeah. but here is the thing, will independents look at this, say -- neil: i don't think it does anything. i could be wrong. but could i switch gears real quickly? elon musk, tesla, what he knew, when he knew it, in trouble with the sec, what do you think? >> i think the sec will give him a pass. they're not in a mood to take him out. neil: explain the reason. >> what he did was he violated his consent decree he put out another tweet. neil: he couldn't do that run it

by the law firm. >> but you're not supposed to put out tweets that are false. he put out something demonstrably false about production. neil: don't they have a big interest payment coming soon? >> now that is the 64,000-dollar question. neil: actually 920 million. >> almost a billion. neil: yeah. >> do they have the cash. they tell us they have the cash. that is a bigger question than the sec. neil: is it your sense the company is in trouble? >> yes. it is always in trouble. that doesn't mean it will not get through it but they are in trouble. they have got a crazy ceo. they have cash flow problems. they have a product that is pretty damn good. they have a brilliant ceo too. he is at times brilliant but you know when you put all that together that's props. this is not like apple, you know what i'm saying? they would do very well be bought by apple having a real management team in there that answers to a ceo that has you know, his head together. neil: didn't they split -- he was chairman and ceo? >> yeah. what was fascinating is that, this kind of went under the

radar screen, the general counsel who is supposed to review all the tweets, she just, he or she just resigned. this is a company that has massive turnover. now the question is, from an investment standpoint, are the shorts going to be right or are the longs going to be right? this is heavily-shorted stock. it is such a vanity play, this is such a cult stock there is always going to be sort of, you know, air in this thing keeping it up. it is a hard stock to gamble and short on, bet it will fall. listen, my good, guy i know many cheers, jim chanos, founded enron, still short the stock, brilliant financial guy, is negative on the numbers. even he would admit this is a tough short. neil: always good seeing you my friend. come back a little later. >> whatever -- neil: if you feel like it. >> whatever your heart desires. >> thank you very much. he is the best.

love this guy. the dow down about 80 points right now. we are still, you know, halfway to another positive week here. that were the case we would still be up for 10 straight weeks on the dow. it will be a climb here because there are a lot of worries going forward, including what michael cohen continues to testify on capitol hill. we'll have more after this. 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.

neil: all right, this could have some big government you know, those leery of it getting a little concerned, federal trade commission creating what they call task force to monitor tech companies but what would they be monitoring? what punishment would they be meting out? hillary vaughn with latest on all of that. reporter: hey, neil. this new task force is keeping an eye on tech giants like facebook, alphabet, taking a look how they expand their empire. ftc chairman joe simmons saying in a statement, quote, it makes

sense for us to closely examine technology markets to insure consumers benefit from free and fair competition. the technology task force is the next step in that effort. so this isn't just looking at mergers moving forward. the seven teen-lawyer team will check out mergers of the past that would include facebook acquiring instagram and whatsapp and google buying youtube. the task force has expertise in online advertising, social networking mobile, and apps, will look at all of it, combined facebook and hold combined monopoly in digital advertising and social media. the "new york post" is reporting that the ttc in the past seriously considered blocking facebook's instagram buyout six years ago. the post reports that the ftc had a document written by a facebook executive that said the reason the company was buying instagram was to take out the competition. so that is something, this new task force could revisit. neil? neil: hillary, thank you very

much. hillary vaughn. we have a green new deal. we have a lot of concern about all the green it will cost to get the new deal, $93 trillion, why democrats are doing their own math on that math after this . the cab is bigger than the last generation. it's the first truck i've seen make you look small. but that's not all... whoo! oh my... whoa! the silverado has more cargo volume than any competitor. very impressive. now, during the chevy presidents day sales event, get 0% financing for 72 months on this all-new silverado. drive yours away this presidents day. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer.

giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? all of you. how you live,

what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. and our shirts from custom ink help bring us together.

we just upload our logo, and if we have any questions, customer service is there to help. - [male] custom ink has hundreds of products to help you look and feel like a team. get started today at customink.com.

♪ neil: kamala harris who was for a lot of this although not every detail said, this is not about a cost but rather an investment. what do you say? >> investments cost money. every policy that a politician puts forward presumably has benefits. it is their job to advocate for those benefits, saying this will be a greater nation if we do this. we're simply adding up the costs. neil: all right senator markey heard that, said your costs to our costs don't make sense because you arbitrarily mention these figures say it will cost $93 trillion over 10 years, doesn't add up. the back and forth continues with democrats unveiling medicare for all bill on the heels of the green new deal. jon summers, and former bain capital partner bigwig ed kinard. ed, let me get your sense where this back and forth is going. neither party runs and controls the man tell on watching spending.

so both of them abuse the privilege but what republicans are trying to do saying the democrats are on steroids with this what do you say? >> i think the cost of this are enormous. i think estimates we see of $93 trillion over 10 years are total costs that will be transferred to the government. it is a little less than half of that, if you look at incremental basis, we're already paying a lot of health care costs for example, how much will rise as result of giving everybody medicare for all. increase the amount of health care spending overall economy. if you guarranty 55,000-dollar a years jobs, a lot of people are earning 25,000-dollar as year, incremental subsidy will be less than 90 trillion. but numbers ad up to 30, $40 trillion over next 10 years under any reasonable estimate. neil: i don't know i can't quantify any reasonable number both side especially you're basing it on stilts.

jon, a democrats rallying around this, sort of rethink being it to say, there are a lot of good ideas in the green initiative but when dianne feinstein is telling high school, middle schoolkids, there has to be more flexibility here, cost issues to consider, you get a sense not everyone is going along with this. they're afraid it will boomerang on democrats what do you think? >> i watched the entire video dianne feinstein the way she talked to the students, there is actually a legislative process. i think that was the point she was trying to get a cost. neil: she got a bum rap on that. i admire the kids and they're idealistic, you should be at that age, all she was saying there is a process for everything and this is not the way to go about it. >> that's right. everyone, on both sides of the aisle should remember there is a process to go about this. senate majority leader mitch mcconnell promised to

bring it up to a vote. go through entire legislative process, debate the proposal, get rid of things ultimately won't make sense and put in things that we do think make sense. i don't know why america has gotten so afraid to have big ideas and have discussions about big ideas? we're in the place right now you either love or hate an idea depending who puts it out there, whether this or donald trump's 13 billion-dollar space force, people are quick to come to those judgments. neil: you make a very good point, but, ed, when people have big ideas, i automatically assume whether republican or democrat there will be a big price tag to pay for it. the old ronald reagan thing, someone giving their vision, i'm thinking of a lot of dough. having said that ronald reagan saw deficits increase unhis presidency. so, neither side ask without sin here but, when i hear this referred to as investment i think that is, you know kamala

harris framed it, then i worry about are we changing our definition of investment what do you think? >> i think most of this is income transfer from one group to another. i don't think that can be viewed as an investment because it doesn't increase our capacity to pay back the debt, for example, in the future. so i don't think that is an investment. i think one arguably -- neil: to be fair what she meant to say, you create all burgeoning new industries themselves like the internet, i'm making that leap, she didn't, it ends up creating all new sources of revenue. i interrupted you. >> the second piece is the green part of the green new deal, invests $10 trillion over 10 years. i think if you even look at climate activists, they would estimate that is going to return about half a trillion dollars 80 years from now, so it's a pretty low return on investment on that $10 trillion, even using a pretty generous assumptions about the what the returns are

likely to be. i think we also consider the fact if the united states spends $10 trillion to reduce energy usage, that will reduce energy prices, drive up growth in the rest of the world. a lot of emission reduction u.s. might achieve will be mitigated by accelerated growth in the rest of the world. neil: john, i don't want get corny on this, the back and forth with congresswoman cortez, i talked to a number of democrats even on this show, on fox news who are saying they're getting worried that she is typecasting all democrats and they're worried about it. in other words she pushed the party far, far, to the left. and that is going to be hard to dial back. where do you stand on that? >> well you know i think, we've got a broad spectrum of people who are, who are considered democrats and obviously she is on the further left of the

spectrum there and she is doing what she thinks, i assume, is in the best interests of her district. that doesn't make her a representative of the party and i think -- neil: but she does get you will at attention, right? >> she is getting a lot of attention and she earned it. good for her, actually being willing to get behind some of these big ideas. again -- neil: but if you're behind big ideas without coming up with a plan to pay for them does that help or hurt the party? >> obviously you have to come up with a plan. that is what the legislative process is all about. identifying what the specific proposals are, rather than policy ideas, coming up with the specific proposals, then trying to determine how much it is going to cost, how those will be paid for. i want to go back to what is happening in the states. we're seeing states take the lead on this. we're seeing it in nevada and other western states quite a bit. they're taking the lead on clean energy and reaping tremendous benefits as a result of it. creating jobs, diversifying economies, putting people to work and lowering the cost of

energy in those places as well. neil: depends on the state and initiative. jon, i want to thank you. ed, i want to thank you both very, very much i don't want to be remiss. bank rate is reporting out seven out of 10 millenials with student loan debt delayed major milestones, getting a home for themselves, getting married, we have bank senior analyst mark hamrick. >> this is the things we can't afford apparently, neil. we have $1.5 trillion in student loan debt accumulated in this country. that is widely known. how at bank rate, how does that affect people? neil, obviously 70% of people from age 18 to 38, 70% or more said they were delaying things like saving for retirement, buying a new car, getting married, having children. but even if you go up to the silent generation, 74 plus, some cases we're talking about

parents who have taken on student loan debt. we're talking about grandparents. some cases they have taken it for themselves, even that large number at that point in our sort of age spectrum is affected. so when we're talking about -- >> is it their debt stopping it or the fact they're not big into commitment? >> i think it is the debt, neil, i really do. we're talking about what the federal reserve has identified as an average balance of about 20 to $25,000 a person. and, you know, thank goodness, we went to school when we did, we didn't have to leave school with those kinds of loans, it wasn't so expensive. we had a big risk shift in this country. it relates to the previous segment, where governments basically abdicated responsibility of funding education at the state level. you know what? the individual has to pay for that. you know, we probably do need to invest in education in this country. neil: so for the young people who are now holding off on this, and they have been holding off a

lot of things for a long time, this will keep being the case? >> i think outlook is only for this to worsen unless things are going to face a major structural change. the cost of education seems to continue to escalate. you're now entitled to luxury dorm room. the days of cinderblock dorm rooms no longer acceptable. schools are passing the cost on to the students and their parents. neil: when anything is going quadruple the inflation rate, that is not sustainable. mark, thank you very much. >> great to be with you, neil thanks. neil: dow down 80 points. which will weigh more on the markets? cohen hearings going on with a lot of dirt coming up about president of the united states, whether that is fair. talks with north korea, chinese tray talks, how do they all figure into the mix after this.

..

>> anybody that wants to listen,

i think that your country has tremendous economic potential. unbelievable, ltd. neil: the president saying all the right things to try to make sure his korean counterpart gets the united states is very optimistic that north korea will do the right thing to restart a nuclear resonant on things though, that and make north korea's economic juggernaut. commands can still be the case. the rate from the heritage foundation policy analyst joining us out of hanoi appeared a libya, when you think of the chemistry that they seem to have headed off, singapore, all the letters back and forth since continue. the people eventually want to see that. what are you hearing? >> yeah come you know, unfortunately in singapore i think the president made some concessions really without getting anything in return for north korea appeared for north korea appeared for example, president trump really

blindsided our allies by discontinuing the joint military exercises and yet here we are coming back to the summit table here in hanoi and promised their ornery practical tangible steps coming next. it's pretty concerning amid the rumors we are hearing about some of the promises that may or may not be made. some of them they are hinting that may even include sanctions relief, which is in my opinion a huge mistake to the trump administration to walk away from its maximum pressure strategy. neil: you know, you're a lot closer to this, but i've got to say, the president going fire more than halfway, first of all by traveling across half the planet to get there. the north korean leader took the train. i understand the reasons why that came to be, but you've got to do something in return. if this ends up making a verbal commitment to open up sides or

whatever, i don't know if that will be enough, right? >> you know, kim jong un is really seeking legitimacy. i think the u.s. needs to communicate but it will take for him to be viewed as a respectable legitimate leader. that means i'm only taking progress towards dismantlement of its nuclear program, but also making for progress on human rights. i think it has been kim jong un's long-term interest to take the steps if he wants to be revered as a respected leader for the long-term and have sort of a normalized relationship with other countries in the international community. neil: so what do you expect? they don't have a lot of time. this wraps up tomorrow. one idea in the ongoing hostility that has existed for the better part of 60, 70 years, which should be a significant fundamental development. but that might be about it. but you think?

>> there are a lot of indications that president trump is desiring to sign a peace declaration with north korea. unfortunately, this is the wrong moment to sign a peace declaration because even though it is sort of symbolic in nature, it sets us on a path toward a goal that north korea has for a long time which is the avenger with drive u.s. troops the korean peninsula. today we are just not any good point where it would be a wise idea to move towards that direction, particularly since the president did get so little of the summit and we are frankly no closer to a denuclearize north korea today than we were prior to when we met in singapore. neil: hope springs eternal maybe there's something going on behind the scene we don't know. olivia, thank you very much. >> thank you for having me. >> the same conditions going back and forth with the china trade talks that are happening. on capitol hill just today.

edward lawrence has the latest from washington. >> very long hearing-impaired though going on in the u.s. trade representative robert lighthizer says it's too early to predict the outcome of this negotiation. he goes on to say we will have an enforceable agreement. the u.s. trade representative mentioned enforcement more than two dozen times already. president trump has the grit to put the tariffs on the prod china to the table. >> if we can complete this effort and again i say ask, we might be able to have an agreement that helps us turn the corner and our economic relationship with china. >> lighthizer says it will be a binding agreement but as a supplement of the 301 report that justifies the tariffs. it will not be a trade agreement the ghost of congress. if they make progress on protecting intellectual property, the section is 27 pages in very specific. it also includes ending cybertheft of technology opening

the financial services market to our banking and credit card industries and in the agreement will hope to move non-berrier terrace and also china would buy more agriculture as well as put restraints on currency manipulation hurting the u.s. import. lighthizer says anything else in this agreement or above everything else in this agreement, stealing of technology is his number one issue to solve. >> if we end up losing a technological edge where we are number two in technology, then the world is going to look very different for our children. neil: it's interesting how this enforcement will play out. lighthizer describes it as the ministry level to work out issues. that does not work on a problem. if that doesn't work, it will be dealt with at the u.s. trade representative level and vice premier level during semi annual meetings. he says that that level there will be a range of imports and options that will be up and

peered neil: lawrence in washington. meanwhile, worldwide markets looking out what happened with china, north korea. ceo mark madsen. what is the big deal for you? >> great to be back with you. the problem with predicting the future is nobody can do it. and even if you could predict the future, doesn't necessarily tell you which way the markets going. if you go back to 1939, world war ii all the way through to armistice day. the u.s. market was up almost 12% per year. so these things are concerning about the trade talks and about the summit, but i want investors to focus on long-term, the next 20 years, not the next 20 minutes. that means owning equities globally in spite of what is going on and then rebalance the markets go up and down. it's hard to do. neil: i know the importance of keeping the world safe and

getting them to denuclearize, but the markets and their capital letters are much more interested in what would seem to be the chinese trade deal sooner rather than later. if that is put back sometime, then what? >> well, you know, volatility is a normal part of the market. i want investors to think even know were having trouble with china right now, the problem is that it takes the blood of global diversification. if you look over the last 20 years in the u.s. ask her about 6%. small companies, which many people would have over a .6% during that same period of time. i want investors to think globally, even though we have these talks in the summit. globally diversified your portfolio and then if international runs its way out and it's very hard for people to do because he gets caught up trying to predict what's going to happen next. i get it. people are afraid.

it's a natural human instinct, but fear will absolutely destroy your portfolio long-term. neil: you know, a lot of people regret that they got out so soon, but there's just as many people now who seem to come back with experience in the markets and say i do want to make that mistake. abr shabbat in my profit and get out. i guess it's all dependent upon your time horizon. what do you tell people? >> book, if you can't take a full vote of the equity risk, take some high-quality short-term fixed income that's not going to be volatile, zero correlation with the market. and when it's down 20% basically, a lot of people. so the fixed income and now, u.s. stocks are up around ballpark or 14%, 15%. who would've predicted that? nobody. i just had a conversation with harry markowitz, nobel prize winner and he said almost all

investors buy things and they're going up at the hopes it's going to continue to go up. when things drop they get afraid and they sell. it's basic human nature and the hardest thing in the world to do for investors is to sell the thing that's going up in by the thing that was down and you just described in december. you described it perfectly. neil: we will see what they do. more optimism than most certainly the case a couple months ago. thank you very much my friend. great seeing you. >> my pleasure. neil: think of all the people on capitol hill today. the federal reserve had robert lighthizer, michael cohen, although his testimonies. what if i told you not a single one of them? after this. so with xfinity mobile

i can customize each line for each family member?

yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars. do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today.

neil: were you satisfied that these guys answers? >> hardly satisfied with the answers, but the more important thing is they all admitted there need to be some changes made. there wasn't as much finger-pointing to others as i thought there would be in they made a commitment to work with us. neil: a lot of the health insurance are down as pharmaceutical executives started telling congress it's not just them that the health insurers, these exchange guys who sort of cobbled together agreements between employers and insurance companies. they're all a mess makes them play that just don't blame them. we'll be following that, but they are feeling the heat already. drug manufacturers during the heat and it's not going away. a big group disproportionally adding to the selloff. meanwhile, investors paying very close attention to the michael cohen hearing. not so much because they didn't

expect would rat out the president, but the degree to which it's getting the attention it is in the mains through media. lieberman has the very latest on that. >> understand that this has been going on for the start of its third hour. the president's former attorney testified on capitol hill apostle recites midi against him. every prescription of president trump by michael: today in his prepared testimony. called president trump a recess. also described him as a sheet and the accusations have gone on from there. cohen produced check showing the president, did and didn't during his presidency relating to stormy daniels. the president was aware that julia masson should be releasing the one e-mails from the the. cohen said throughout most of the presidential campaign and since the president knew about the infamous trump tower meeting where lucy believes that the possibility and 2016. cohen also produced personal

documents, financial documents from 2011, 2012 and 2013 and said the president inflated his assets when trying to obtain a loan from deutsche bank. listen here. >> i believe these numbers are inflated. these documents and others were provided to deutsche bank on one occasion where i was with them in our attempt to retain money so we can put a bid on the buffalo bills. neil: republicans rupturing continue to paint michael cohen of a convicted liar. he's going to federal prison for among things lying to congress throughout this process. you see the top republican mayor. just a little while ago to begin the hearing said that his whole theory behind this is that because cohen didn't get a job in the white house, he believes he is out for revenge and says that lanny davis, cohen's attorney who has deep connections to the clintons as plain cohen.

>> the best thing they can find to start this process, michael cohen. fraudster, cheat, convicted felon and into month a federal inmate. actually, they didn't find him. maybe davis found him. i'll say one thing about the democrats. they stick to the playbook. reporter: president trump tweeted today that he feels cohen is trying to reduce his prison sentence and an exchange a few minutes ago he mentioned that he is cooperating right now with the southern district of new york in regards to other potential investigations out there. neil: the most incredible development was the fact that donald trump would try to rejigger his finances to the buffalo bills. reporter: you look at the document goes from $4 billion to $5 billion to eight or nine, something like that in just one year. it's a pretty good hike if you can get it. neil: i digress. reporter: you are talking to a dolphin fan by the way. neil: i'm going to hear it

already. thank you my friend. in the cohen hearing that's going on, how substantial is that? the differentiator here we are told is that he is citing flagrant abuses on the part of donald trump, not just before he became president, but after he was president. it's making that stick to see if he was really telling the truth. that feels white house reporter elaine out. now not, where is this going you think? reporter: honestly i think it's pretty remarkable to see what members of the oversight committee, the kinds of questions they're asking him. a lot of. a lot of that we see in politics play now. we can expect some television spectacle but we're not seeing a lot of questions getting to answers that show criminal conduct of the president appeared to think up a lot of politics like i said that are just being thrown around. they're not asking specific questions about mr. cohen travels to prague and other things along those lines. i think like you said the

biggest thing here is the kind of criminal conduct that he is alleging her things the president may have done while in office, not just before the presidency and that is something robert mueller has been investigating. for democrats on the oversight committee as well as the senate intelligence committee yesterday and he'll speak before the house intelligence committee tomorrow. those are things i want to look into what a fine tooth comb as they continue their investigations. neil: how was it that mueller allowed him to testify to congress? you would think with the investigation we are told close to wrapping up, that would be very risky. >> like you said, we don't know when it's close to wrapping. they've been saying that since the end of 2017. they wish the mueller investigation would begin dating. we've seen dating. we seem to play out a lot. we've seen a lot of members of the trump administration as

well, even current members like jared kushner be subpoenaed to testify before different committees on the hill. it is pretty remarkable. he's already been delivered a prison sentence. michael colin is going to prison regardless of what the president tweeted that is trying to reduce his sentence. he is going no matter what. people on the hill has been trying to get him to testify for some time now, especially after he lied and that's one of the reasons he's going to prison. he lied to investigators before sundown easier to correct the record. i think it is remarkable that he is doing this in front of television cameras today and the hearings that are behind closed doors. neil: you are detached on it, but he is going to prison like you said for three years. could any of that change? is that set in stone? could anything he's doing today help, hurt him, what? >> i don't believe so. his prison sentence is now set in stone. i don't know what other investigations he might. he is still in discussion with

the southern district of new york and some of those investigations. from what we know his sentencing will remain exactly as it was before and nothing witty saying today today could affect out. neil: the president has said these reputable, don't press them. michael cohen is singing each side will play the politics. democrats dander something significant going on. nothing significant going on here just move away from here. how do you think this resonates afterwards? >> well, i think a lot of the i've interviewed a lot of people on all three committees who are investigating michael cohen last week in the lead up to this. a lot of people didn't think of huge blockbusters especially for the oversight today. of course, new evidence in the past 24 hours in the testimony that he released and he's been

given today does change some of that. the documents he provided, and the checks and showing that donald trump junior is involved in some of those. i think that it will change the course of the investigations moving forward and a lot of this i think before hand, democrats were really relying on robert mueller's investigation into kind of be the blockbuster that they were hoping to paint the president in a certain way. now they are looking at their investigations and the oversight investigation. it will definitely help further that in the half more inquiries based on the testimony move forward. neil: we will watch closely. thanks for everything again. neil: democrats are reuniting. the details on how to pay for it all. the dow down about 34.5 points. the only thing i could see the bite is moved to need a little south of ambassador lighthizer, kind of the point man on the trade talks with china who says, you know, it's involved. it could take a little bit of a

while and furthermore it has to be enforceable at all levels, which means i would be a lot easier said than done. and not quickly. after this. ♪ vanishing deductible, you can... ♪ ♪ earn $100... ♪ earn $100 off... ♪ off your deductible. ♪ deductible. ♪ for every year of safe driving. ♪ ♪ for every-- for every-- ♪ ♪ for every year of safe driving. ♪ what are you-- what key are you in? "e." no, no, go to "g." "g" will be too high. not for me. ♪ vanishing deductible. oh, gosh. sweet, sweet.

>> the truth is we've had three consecutive meetings on the balance sheet and we worked out a thing the framework of a plan that we hope to be able to announce soon that will light the way all of the way to the end of normalization and that will result in the end of asset runoff sometime later this year. neil: for my money, while the hearings going on concurrently, and the china trade situation, michael colin on what the president knew and when he knew the situation, i think the jerome powell comments were newsworthy and significant of the day. i'm not mean to minimize battery the fact and it made his colleagues are much more focused on michael: and what he has to say, but jerome powell if you think about it controls the

purse strings. what he was essentially saying today in a second day of testimony on capitol hill is that things look or be good. not too hot, not too cold, but good enough to keep this recovery going in break with seems to be an inevitable record for a bull market. that will be 10 years beyond early as next month. jpmorgan chase anthony chan. nothing he said seemed to dissuade people that impression. things are looking good and will stay looking good for a while. >> right now with the federal reserve and at least giving some signal still be a little bit less aggressive than they were in the past. sort of gives the economy a little bit of an extra push anyone to the business cycle a little bit longer. many of the risks that were there for 2020 i'm not going to say disappeared, but they're sort of melting away and suggest that maybe we can keep this extension going just a little bit longer. certainly the balance sheet

situation also suggesting maybe a little bit less than they had earlier anticipated when he said the balance sheet was on autopilot. neil: the balance sheet, $4 trillion still on the balance sheet at a little over four-point i've trillion. shouldn't i be a little worried that they are going to keep that they are like a high credit line and not pay it off. >> not really. currency in circulation has increased dramatically. today is part of the balance sheet you have $127 trillion in currency in circulation. we know that the ballot she was $900 billion in the process started, the right now the currency is $1.7 trillion. neil: a dozen mouse at the $4 trillion they have. >> you got liabilities, capital. they're going to be bringing it down. neil: how are they going to bring it down? >> never sell. remember you also have something

else and that is with dodd-frank now, there's a lot of more banks to keep our liquidity and banks are choosing to keep out the quiddity and bank reserves. inc. reserves yesterday have to exceed $1 trillion. where the magical number and could be somewhere between one and $1.5 trillion weird no one knows. they're still studying it, but it's higher than it was before the global financial crisis. neil: do you think donald trump was proven right in criticizing the federal reserve for hiking too fast, too soon, tom, because the fed has changed. >> remember that john maynard keynes once said when the facts change, you change your mind. [inaudible] >> i don't really think so. monetary and economic conditions and when they swore the slowdown in the overall economy, the financial conditions tightening, when i saw the actual u.s.

economy seen the equity market going down, not so much a big target, but insofar as movements in the equity market have an impact in the real economy, you can't ignore it. when they saw all those things that, they decided to take apostasy would happen. if the economy runs to the races, the fed would be right back in. neil: let's talk a little bit about the michael cohen stuff. raising the possibility, you have to look at the numbers. you have to look at the data. it is looked at data that is now started to slow from its earlier pace, but still respect the bull. but then you have a wildcard that in the extreme case could test the presidency of donald trump. then what? >> away look at it as i focus on fundamentals are guessed, these developments will always be there. different kinds of leasing them over different decades. at the end of the day, financial markets will focus on the

fundamentals. if the fundamentals are strong, though buell to offset all this political noise. i focus on the fundamentals to tell me what's going to happen to the market and what's going to happen to the u.s. economy and the political have. neil: that echoes what your boss jamie dimon has been singing, still favorable. he likes what he sees. there are events that could come out. what are the events he worry about? i worry about what could happen internationally. i worry about whether we get a hard brexit appeared to get a a hard brexit, the united kingdom, u.k. economy could take a 4% hit, but two or more -- neil: with that hit us? eventually it would. we estimate that hit to the eurozone could be 25% of the negative hit. we are looking for the eurozone to grow at 1.2%. if you get a 25% hit, that staves off 1%.

0.2% growth is awfully close to the zero level. and if you don't get a china trade deal, that is not good either. again, a lot of economies have a much higher share of their economy. look, for example germany. 50% of their gdp is actually exports. all of a sudden that china is not doing well, not only is your doing well, but fusion for strong trading relationship. japan and other economies and some extent even ours. it's in our best interest you never lose sight of the fact that china purchases 10% of the entire world import. so if china doesn't do well, guess what, the rest of the world is not going to. neil: thank you very much. again no one can come back on the show and say you didn't get the bearish argument or when were in the middle of a bit rundown, that you didn't get the bullish argument. try to cover all aspects there.

you just heard a couple different points of view. a lot more coming up fluting oprah winfrey. she is losing a fortune on paper today. she is still worthwhile and access of a billion dollars, butter weight watchers investment, not helping. after this.

>> welcome back to coast to coast am ashley webster on the floor of the new york stock exchange were in keeping an eye on weight watchers down a whopping 33%. as you can see down to $19.63. why? weight watchers says they will help you or members this year also predicting lower earnings and sales and that is why the stock is tanking. celebrity oprah winfrey who has a stake in this company has lost up to $60 million as the shares have plummeted.

it was at $103 per share just eight months ago. meanwhile, home improvement chain lowe's reported earnings that beat estimates and gave a relatively bullish outlook despite weakness in the canadian market because this comes one day after home depot's disappointing results. the company they are blaming, wet weather. it expects more home renovations this year as house prices rise and they say that means more americans will stay in their current home. and we all know that amazon is the giant and online retail. a new survey shows that cosco is number one when it comes to customer satisfaction. according to the american customer satisfaction index, cosco came with a score of 83. amazon just one point back of 82. it is the first time that amazon has it the next persons all the way back in 2010. it sounds like the american customer satisfaction index sounds made up here nevertheless, that the story. neil: that is weird.

but that's a big deal. thank you very, very much. i don't want to bum you out here and i know what still in the throes of winter, but by the fall, by september were all going to be out of gas. unless these are more or do something real quick, were all going to be hurting. after this. 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.

want more from your entejust say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.

who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com.

>> you know, the main thing is we never failed to pay all of our bills when it was due and i think i can never happen. that's just not something we can allow to happen. i think our credit rating and our credit as a country is such an important asset that we need to stop short of letting that happen. i think it could have very hard to predict but possibly quite bad consequences if we were to default on their payments. neil: s. jerome powell aside from the federal reserve chairman, we haven't done that yet, even though $22 trillion in debt and run record deficits one year after the other under republicans or democrats. we've always been good on our obligations to pay social security, medicare, benefits and what have you. so we've always made good on that mainly because we can just print money.

eventually we're going to run out of even that easy option. the deputy mayor under bush 41, bob grady with us right now. always good to have you. this is something you've talked about that we whistled past the graveyard. we are in the graveyard. >> chairman powell is dead right. i mean, the fact is the fiscal deficit is probably the number one on address public policy issue in this country that congresses whistling past the graveyard. chairman powell if you think about it has made it easier. he's given congress and breathing room to address it because as you well know in the last several months he slowed the pace of tightening on the monetary side which might have made it less easy to make some cuts on the fiscal side or the fact that he slowed the tightening his congress room to do something now that they've got to get on the stick and do it. neil: he was about as blatant as the fed chairman can never be. republicans and democrats get

off the stick and do some dinner at these control the growth of spending which is running amok. you know, it's almost like the boy who keeps crying wolf. it goes in one ear and out the other. what would bring it to a head? >> here's the issue. we have had a long-term problem where the benefits, the entitlements of u.s. government, the budget that goes to giving tax to individuals. that has been growing at double-digit rates in particular medicaid. when john f. kennedy became president, 25% was just writing tracts -- rain check to individuals. if you look at the last 25 years, the u.s. economy grew by 200%. it's about three times as big as it was a quarter century ago. in the exact same time period, medicare has grown by 560%.

6.5 times as big as it was in the cave has grown by 820%. with nine tenths of because it was 25 years ago. you can't have medicaid growing three times the rate of expect that to be sustainable. what is happening is it's reducing our ability to invest in things like research and development in great universities, highways. talking about crumbling bridges and broadband that make us competitive and importantly national defense. out here at stanford, good friend of mine was a professor at harvard and now he's at stanford. when countries fail to pay their debts, overtime and undermined their ability to invest in national security in the end result is what he called the fatal arithmetic of imperial decline. we are in the seeds of long-term disaster for go do something. neil: i don't see any of that changing. >> we have the debt ceiling coming up march 6th.

you know, i feel bad i think the administration, the trump administration put on the table when we're having the resolution of the government shut down, at one point they suggested we includes an extension of the debt ceiling and they were smart to suggest that. they want to cause another crisis, right. the truth is they didn't want them included. we'll have a lot of drama around that deadline as jay powell said yesterday, the government has the ability to use its cash reserves, et cetera to pay bills at a minimum. through the middle of the summer, probably into the fall in to a little seasonal benefit. neil: we shouldn't be doing that. it buys time but it really doesn't buy a confidence. go ahead. >> obviously the march 16 acc rates going up, people will finally hopefully get the message that you can't just keep our wing.

neil: there's a concept. anyway. i do think you have to tie entitlement reform to some other thing. the fundamental issue between the party afloat, everybody agrees you should invest more in defense and r&d. this is the democrats you got into a serb and is not a republican because the way you do it is a product of the growth of entitlement. neil: will be slowed down. thank you very, very much. bob grady. all of this has a lot of democrats are pushing about my spending. of course the name is always in the eye of the beholder. some tuition is already very, very high and if we make guarantees around that, we could be compounding the problems that bob grady just outlined. what you see here? >> is really interesting you are hearing this mantra that education is a right and it's not. it's an investment and that means it has a value attached to it and you have to attach that

value and evaluate that based on the outcomes are the quality of the education what kind of jobs you get. it doesn't have value it in a single price. and now we are seeing government has been involved for many years guaranteeing loans. the price of colleges have doubled over the past 30 years to about $35,000 a year on average. the private side is more than tripled about 10,000 for in-state. 26,000 almost for oddest day. so as you get more and more government intervention without evaluating what's the major and what the outcome, the price has been increasing and it's going to an continued to increase. neil: sewickley now push for education, will be more inclined to just keep jacking up those tuition and room and board costs, right? >> yeah, very interesting you bernie sanders saying i know these people who have six-figure education do not just completely insane or is six-figure debt is completely insane.

the challenge if you make those free, that means the taxpayers are going to be paying for the six-figure education and the reality is that colleges have no skin in the game. i've never seen a situation like this before. they have no sort of invested benefit in the outcomes. more people are told you must go to school instead of perhaps looking at trade for something else at any price. we know this is just pure supply and demand that's going to continue to drive up the price. neil: well said. thank you very much, carol. carol ross. if this seems like bad financial comments because it is good but there is such a thing as positive financial karma. after this. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that.

that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

. . . ♪ hoo!

- did you know, the exact same hotel room can have many different prices? it all depends on where you look. - wait, you paid how much? - oh, dear! - well, this is awkward. that's why tripadvisor checks over 200 booking sites (cash register ringing) to find you a great price, and the hotel you want,

so you don't end up overpaying for your room. no offense. find the right hotel room for the right price. ♪ hoo! read reviews, check hotel prices, book things to do. tripadvisor. they seem to be the very foundation of your typical bank. capital one is anything but typical. that's why we designed capital one cafes. you can get savings and checking accounts with no fees or minimums. and one of america's best savings rates. to top it off, you can open one from anywhere in 5 minutes. this isn't a typical bank. this is banking reimagined. what's in your wallet? neil: given what i do, i have to read a lot of financial books. i don't mind that. some are more after test than others. one of the best i had in years, you know dan, financial karma

author, steps back with common sense insights points to ways we can get around so-called complex problems. first of all by just practicing good karma. he joins me now. we have all the worries that we have. can't get debt under control. can't get spending under control. north koreans, can't get anything done. spending running amok, no one focuses on it, you take it a step at a time. you say for every good action we take there will be a follow-up action. explain. >> karma, by definition, means action f we have the right intent, neil we take that to action we'll get a positive result. that is what the book is about. we watch the doom and gloom on the news i say on a second, we can reverse this, simply reversing our intentions and putting things into action. i really believe a lot of our

problems at the core come from government or peep that represent us or don't represent us, and they represent themselves. that is the problem we have. neil: i thought you were speaking about me, diets and all, less food in. neil: more movement, all of that, i get that. everyone looks at 22 trillion-dollar debt. it can't be done, it is overwhelming. let's begin slowing the growth. that is what paul ryan was doing many years ago, reining in medicare, no one would go along with him. how do you get good karma? >> we start off the book, we can make things simple, want to lose weight, eat less, move more. we will get the right result. spend less, save more. if we simply start to focus in on government cannot sustain this ex-stored nary spending beyond what we bring in.

none of us can operate that way. neil: you apply that to both parties? >> yes i do. listen the rate we're at, putting on a trillion dollars of a year more debt is no different than what barack obama was doing year after year. he was criticized, rightly so, president trump, despite a lot of good economic accomplishments he has had, look at the debt, inching up the same way as barack obama. we are not making progress. that bows back to -- neil: we're not learning, right? we're doubling down. >> we're doabling down, politicians don't want to make tough decisions. why, neil? they're engaged in re-electionism. let's hand out the candy. don't worry about the debt. make sure i get reelected because that is what is in the best interests of the people, that is how politicians think. it is not. we need term limits. neil: you think that removes

sort of the control few politicians have? >> i really do. there is no reason why somebody should be serving in government for 30 or 40 years in the same position. there is no reason. you serve a specific term, you do the right things not get reelected, move on to something else. if you're in the house, run for senate, run for president, but you can't stay there forever. i really believe we take care after lot of negative karma. neil: voters with every election, the guy on inside, longer he or she is on the inside has distinct advantage. >> you want to know something? look how it works. so many governors are subject to term limits yet their legislatures are not. look at congress, put a limit on the president but not on themselves that needs to change. neil: let me get this straight, eat less, move more. >> very simple. neil: 10,000 steps is that per day? >> yes. neil: per day.

that -- >> let's add steps. neil: that's enough. dan, thank you very much. a great book. positive financial karma. be aware of it, because he makes the complicated very, very simple. i think most problems are simple and direct. charles payne lives it. charles: i'm working on crouching spider, that a move? >> kind of. neil: family network. charles: i'm trying to get were the -- with the theory. market costin to be sluggish. they have to ponder geopolitical issues. these are the moments you want to see as an investor. i'll explain. all eyes on three major hearings on capitol hill, trade representative robert lighthizer tells the house ways and means committee there is still work to be done on china trade talks, fed chair powell