hot dog on wheels for $136 a night on airbnb. the company offering a mini fridge packed with hot dogs essentials and a hot dog inspired onesie to snooze in. perfect for connell. connell: thanks for joining us. "bulls & bears" starts right now. breaking news. shares of tech giant microsoft climbing nearly 1.5% in reaction to its fourth quarter earnings report just released in this last hour. we will have all the details and the numbers you need to know coming up. a vote for any democrat in 2020 is a vote for the rise of radical socialism and the destruction of the american dream. frankly, the destruction of our country. lauren: president trump slamming progressive democrats in the 2020 field and sounding the alarm on what he's calling the rise of radical socialism. with some moderates like former

vice president joe biden and othe others, arguing they are moving further to the left. is there truth in what trump is saying? i'm kristina partsinevelos. joining me from the panel today, jonathan hoenig, john burnett, gary kaltbaum and zachary carabell. do you think the president's right or is this really just about political polarization? >> well, the whole country has moved to the left. the democrats have moved explicitly to the left. many of them embrace socialism now, they embrace it in their words and even their policies, whether it be wealth redistribution, government control, government-run health care system. these are socialist ideas. i know you are probably saying it's democratic socialism or it's a different type of socialism. the main fundamental is there, that your life is not your own. you are a sacrifice to the greater good. that's just the antithesis of the american idea,

individualism, your right, your liberty. the democrats are not on board with those basic ideas. >> we are going to keep having this debate. it's not going to be resolved. the fact is, this is exactly the reaction when medicare was proposed in 1965, it was obviously the reaction when obamacare passed in 2009. this idea if you vote for democrats -- >> or the income tax. when the income tax was introduced. you're right. this has been going on for 100 years. >> i'm saying this claim we are heading towards socialism even though we have these public benefit programs that a lot of people are for, medicare is one of the most popular of all government programs, and it was absolutely denounced by a certain group, you would have been comfortable in that at the time, as being socialistic. the idea that a vote for the democrats as the president said is a vote for the destruction of the country is such wildly over the top rhetoric. now, it may be effective campaign rhetoric but it is by no means accurate. >> may i push back just a wee bit on that. look, i have my little gary's

list on what these candidates are proposing. hold on one second. health care, insurance, education, energy, technology, banking, even elizabeth warren, that great capitalist, is now going after private equity. there's no industry they are trying to control or do something about like breaking up or whathave you, and everything has a cost. the amount of taxes and the list of taxes that have been proposed would just take care of this economy and destroy it. that is not hyperbole. these people are not socialists at this point. i read 30 minutes on marx last night. they are really into marxism at this point in time. >> absolutely. they want to control your finances, your wallet, all your decisions, right? so there's no end to this. it's kind of ironic that the party of choice, right, party of choice wants to take your health care away, right. so that doesn't make sense to anyone in the middle of america

is not going to go for it. why? because they want to choose their own doctor, their own health care. they want to make sure they still hold on to the very few freedoms that are remaining. kristina: i want to quote gary just a second because you told me to hold on a second. gary and everybody else on this panel, this is a great lesson in marketing, in campaigning. what they are doing is polarizing both sides. i do not think it's black or white in saying they are going to take away everything or everything's going to cost all this. no, i think it's a way to get maybe say the softer republicans out there that are a little bit unsure, knowing that here's a group of people that could undermine the capitalist society, the capitalism that america was built on, much like jonathan alludes to very often, and point them in that direction to go against them. i don't think -- >> i don't think this is a republican or democrat, i think president trump is speaking to america. there are people on the right and left that do not want this country to go down the path of socialism so he's making a clear

demarcation. >> the fact is, to say that they want to take away choice and control, they want to solve certain problems that we talked about before. there are issues with our health care system, there are issues with people paying too much. obamacare needs fixing. the goal is to fix the system. the fact is, they may take away choice but the question is not how are we going to take away. kristina: one second. jonathan, go. >> everything comes back to what is the basic idea of america? is america just whatever we can vote for? no. america is about something, it's about the right of every individual, not to sacrifice for the greater good, public health care, and to trump's detriment, he does not advocate or represent that individualist collectivism, the health care he's proposing, that's not the antidote. there's two ways of changing the status quo. you can be better or you can be worse. my fear is that trump, i said this before, isn't leading us towards the capitalist alternative to the democrats'

clear socialism. >> do you think a government that's put us into $22 trillion of debt is going to solve problems? do you think a bernie sanders who has lived off the taxpayer his whole life and never created a dime of wealth or a job is going to solve our problems? with more government? you got to be kidding. this is voting on a $15 minimum wage. they are now mandating to businesses what they have to pay. businesses are going to react in a very bad way. they are talking about corporations, how much they have to pay. this is getting ridiculous. a government that's out of hand shouldn't be telling business what to do on anything at this point in time. kristina: we are going to continue with this. bernie sanders' campaign is slamming rival kamala harris's plan to pay for medicare for all and her refusal to say it will boost taxes. listen. >> he just said that, that you were not in favor of a middle class tax hike. >> yes. correct. >> how do you propose to pay for your version of medicare for all? if it resembles what senator sanders -- >> part of it is going to have

to be about wall street paying more. it's going to have to be about looking at how we and what we tax in terms of financial services. that's part of it. but the other part of it is to understand that this is about an investment. >> without unicorns, magic wands, health care is not free. there's doctors, nurses that have to be paid. there's hospitals. you have to pay for it. i do not believe you can have health care in america for everybody without paying for it. kristina: what do you make of that, the fact that i guess the big question is how are we going to pay for it? what do you make of her response? >> bernie sanders is clearly saying you know what, why am i the only one at this party, right? no one else wants to step forward and actually admit that we are going to raise your taxes. he doesn't want to be the only person in the primary. look, the thing is we have to be honest with the american people. just taxing the rich is not going to bring about this $50 billion gap over the next ten years. he's saying look, let's step

forward, let's be honest with the american people and really tell them what's downicoming doe pike. you want better care, you'll have to pay for it. >> can i just say something? they're talking about taxing financial transactions on wall street. that's not taxing wall street. that's taxing aunt mary and uncle bob on their trades. this is from the poor, the middle class, anybody, they are going after everybody to pay for their controlling all of the economy. it is absolutely illogical and insane. as soon as we get to really go through this in a fine-tooth comb we will be a lot better off. kristina: i have to stop it there. we have to get back to the breaking news we mentioned at the top of the hour. shares of microsoft right now, you are seeing it, up about $1.80. this comes after a strong fourth quarter result and for all the details, let's actually head straight to gerri willis on the floor of the new york stock exchange. what do we need to know about microsoft? gerri: hey, that's right. reporting after the close, a big

quarter beating on both the top and bottom line. let's take a look at the numbers. $1.37 against estimates of 121, $33.7 billion, higher than anticipated. you see the numbers right here. the big story, cloud revenue, up 39%. this is the big kahuna for them, their azure business. cloud revenue responsible for a third of sales. this is what pushed revenue higher and has made the company have such great performance. gaming revenue for the company up 10%, linkedin revenue up 25%. they returned 7.7 billion to shareholders in share repurchases and dividends, and finally, quarterly, windows sales up 9%. this is important, because we had trouble with intel's inputs into pcs, their chips were not coming in as expected. that problem has been solved so you saw a gain there. also notable here, now, the stock as you showed is up here

after the close. it had been down all day long. why? the president said he would ask the pentagon to reconsider a $10 billion cloud computing contract it's thinking of awarding to either microsoft or amazon or possibly both. companies like oracle are complaining about the awarding of this contract. so the shares were down all day on that news. but after hours, the shares soaring on good old-fashioned eps. back to you. kristina: we saw that like you said, up 39%. thank you, gerri willis. the acting department of homeland security secretary clashing with democrat lawmakers on the hill today as he testified about conditions at the border. california democrat rho cana was there. his take will be next. >> you want to make this longer, it's been very clear from this administration, you want to keep kids longer. >> we want to keep families together through an immigration

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come from other money managers. fisher investments. clearly better money management. you don't think that having 10,000 officers in a violent, racist group sharing [ inaudible ] means a dehumanized culture? >> those posts are unacceptable, they are being investigated but i don't think it's fair to apply them to the entire organization or even the members of that group believed or supported those posts. >> sparks flying on capitol hill as acting department of homeland security secretary kevin mcaleenan getting absolutely grilled by democratic lawmakers about what some see as unfavorable conditions, troubling conditions at the border. hillary vaughn is on capitol hill with the big take-away. hillary? reporter: well, really, republicans and democrats both

agreeing in these hearings that the conditions at the border need to be addressed, and that republicans are asking democrats for more funding to build more facilities and fix these conditions, these as secretary kevin mcaleenan today facing off against congresswoman alexandria ocasio-cortez. she tried to tie president trump's policy of child separation to a larger culture at cbp. >> do you think that the policy of child separation could have contributed to a dehumanizing culture within cbp? >> we do not have a dehumanizing culture at cbp. reporter: secretary mcaleenan also wanted more money, but in addition to that, he really wants congress to fix the border agreement that prevents law enforcement from detaining children for more than 20 years, saying this has triggered a surge at the border because people crossing the border with kids know that they cannot be held longer than 20 days. that's not enough time to see a

judge so they know they will be released. congresswoman rashida tlaib had this exchange with the secretary. >> you want to keep them longer. it's been very clear from this administration you want to keep kids longer. >> we want to keep families together through an immigration proceeding. >> by keeping kids longer. reporter: congressman mark meadows saying in the hearing today he wants to push for funding within the next week, definitely before they leave for august recess. we'll see if they can get that done. >> thanks, hillary. let's bring in congressman ro khanna. thank you for being with us. you are obviously a member of the house oversight committee. you were witness to and participated in some of these tremendous fireworks today on capitol hill. is there any progress being made about this issue at the border, or was this all just political theater? >> i think we can make progress. here are two things we could do. we could reinstitute in-country

processing. have folks apply for asylum in guatemala, in honduras, el salvador, before they come to the border. that was something we used to do. it was discontinued. let's redo that. second, let's have u.s. aid which has been effective go to these countries so they can deal with gang violence and reduce violence. that's in everyone's interest. i think there are common sense solutions that we can implement that would solve this issue. >> congressman khanna, this is gary kaltbaum. the things you just said are quite reasonable, but as a spectator, we keep watching day in and day out how the republicans go after the democrats, the democrats go after republicans, and nothing gets done. it seems like we're just walking on a treadmill. at what point in time are cooler heads going to prevail, get in a room and really get things moving, because this is a crisis that needs to be fixed. >> gary, i share your frustration. i think probably 80% of americans share your

frustration. we have to solve this issue, make sure we are reducing the amount of people who are coming to the border and have other means of having them processed. i think the solutions i offered are actually bipartisan. i have talked to other republicans. my hope is that we can tone down the rhetoric, that we can talk about being a nation that's welcoming of immigrants but that has a process, and that we work on what we need to do to get people to follow that process, whether that's more judges, whether that's having in-country processing. let's work on a solution. >> congressman, kristina partsinevelos here. i hear your proposals, your solution, and they do sound great but they seem more long-term. that's what i'm hearing right now. you're saying it's a crisis. gary saying it's a crisis. most of us on this panel are saying it's a crisis yet i'm not hearing a solution to the immediate problem, the fact that children should actually be only held for maximum 72 hours, but like our reporter hillary vaughn mentioned, they are being held up to 20 days. what are you guys discussing in there that is going to solve it now? >> well, we are talking about we

just authorized a lot more funding for the department of homeland security and we should make sure these kids have basic humane standards, that they get tooth brushes, they get blankets, that they are treated with the dignity that any american would want people treated with, and i do think that that needs to be implemented and my hope is that every member of congress, frankly every american, would want that. >> representative, it's zachary carabell. delicate question, given your position within the democratic caucus. for all the catnip the squad is to media on the left and right, there are 40 representatives representing what were swing districts in 2016 and they are not attracting the kind of attention, let alone the rest of the hundred plus members of the democratic caucus who may be less partisan or extreme in either their rhetoric or their playing off the media. how do those voices which tend to shy away from the limelight

and maybe be more pragmatic and a little bit more focused on issues rather than polemics, how do those voices within the democratic party have more purview than they currently do, given they are totally drowned out by the margins? >> they don't have the president of the united states attacking them. i mean, the caucus is unified around condemning what happened last night at the rally. the challenge for them is how do they break through when they're not sparring with the president. there are some terrific members, like abigail spanberger, haley stephens, talking about manufacturing, talking about jobs, working across the aisle, but the reality is in my view, we need to tone down the rhetoric in this country. we need to focus on doing things for the american people, getting things done, not just scoring political points, and i actually think you're right, that there are a lot of voices of people doing good work who are working across the aisle thanand that's being highlighted. it's why i think our country is in such a polarized moment.

>> i have a business background. the way we approach problems is prioritizing, triageing, as well as looking at it from an operational perspective. what are the top three things that the administration and the lawmakers need to focus on to address this issue? >> to address the issue on the border? i would say first, making sure that the conditions are humane. just at a very human level, anyone coming to america should have basic supplies, should make sure they have access to basic, a doctor, and i think we can do that. that's what the oversight committee should insist on. second, we need to make sure that we have enough judges down there, we have enough people processing folks so that we can process individuals and we're not releasing them before they have a proceeding. and third, i would look toward some of the longer term solutions which is getting in-country processing started again, trying to reduce the violence in these other

countries. the reality is, there is not that much of a world of difference in what most people think the common sense solution should be. what we are doing, though, is trying to score political points on this issue, and unfortunately, nothing is getting done. >> keep on it, congressman. thank you for sharing these thoughts. please come back. we want the hold your feet to the fire. get something done because all of america is watching. >> i appreciate that. >> one of america's most liberal cities is issuing new laws in the name of, wait for it, the environment and political correctness. wait until you hear what they are banning. the report, right after this. ♪ limu emu & doug what do all these people have in common, limu? [ paper rustling ] exactly, nothing.

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berkeley, california, becoming the first american city to ban natural gas. it will be banned in all new home construction in the name of environmental protection. the buildings will now be fitted with electric infrastructure and john, i got to direct this question to you, natural gas is used to generate electricity, right? >> yes, but so is solar, wind and nuclear. what's not clear, right, is how are they going to get by with this sudden shift? kristina: this is new construction. >> but the impact, right. in those areas, in many of those buildings, just like in new york city, we have commercial space at the bottom. many times, it's a small business in the name of a restaurant or some other form of business that needs electricity, right? that's going to actually create more expensive bills. let me give you an example. local coffee shop in harlem, i attend all the time, he complains to me, he says john, my electricity bill is off the charts. he showed me his bill.

the actual electricity usage is only $296. guess how much the bill is? like $850. just for carry charges for being a business. the extra taxes. so these policies are placing a huge strain on businesses. when you place a huge strain on businesses, guess who's impacted the most? not just customers paying higher prices, but also people that need jobs. >> in this case, it's also an issue of you are essentially removing the issue and putting it on the grid rather than on the consumer. the electricity has got to be produced somehow. yes, california has a huge number of regulations about how that power's going to be generated. they have more hydroelectric resources although those are getting more in short supply. so it's not like electricity can just be generated out of thin air. well, maybe wind is thin air. it's got to come from somewhere. >> what's wrong with natural gas? natural gas is, if you don't like fossil fuels, you don't like coal, natural gas is the

third -- it's a third cleaner than coal and i believe half cleaner than crude oil. the reason the green movement, the reason that those in berkeley don't like it is because it works. i know you are rolling your eyes, but environmentalists are against anything that -- kristina: i was not rolling my eyes. >> i'm rolling my eyes. >> that's why the greens are against it. >> they're not against it because it works. come o jonathan. let's be real. they may be against it because they think it's more polluting, because they have an idealogical reason. they are not sitting there against it because it works. >> heat buildings and water, dry clothes, cook, who needs to do any of that. let's take out the natural gas. here's the story behind this. the costs are going to go up. simple as that. kristina: guys, i want to continue the conversation. it's more about california. berkeley is also passing an ordinance barring gendered language in the city code. here are a few terms they are looking to replace.

manhole will be called maintenance hole. manpower will be called human power. and the term men and women will be replaced by people. gary, i know you were just talking, i cut you off over there, you think it's gone too far? >> sigh. i mean, i don't even know what to say to this. let me ask you a question. what if they put two people into a room, have them smoke some weed and ask them, come up with things, we can get rid of the word man because man is just so bad. with adam and eve, adam is going to be so upset he's rolling in his grave right now. >> we should get rid of the word covers. kristina: you mean hole. >> covers, too. look what goes on underneath the covers. that is really -- >> gary, it's silly and insignificant but look, it's not a new attack. these type of things, we talk about the local municipalities being experiments for the nation writ large. this doesn't bother me. i think it's crazy silly that

manhole is somehow offensive but this is what's happening in berkeley. it's one of the reasons interestingly in my opinion, a recent study said that berkeley was the worst place to buy a new home, a recent -- i think some of these types of proposals are probably the reason why. >> this reminds me of a demolition man. you said something inappropriate, you get -- kristina: two points. great human effort there. it is going to cost the city $600. it's not free. but let's move on. president trump announcing this afternoon the united states has shot down an iranian drone in the strait of hormuz. what the pentagon is saying now and reaction from fox news national security and foreign policy analyst on where things will be going from here. that's next. once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play.

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the "boxer" took action against an iranian drone which had closed into a very, very near distance, approximately 1,000 yards, ignoring multiple calls to stand down, and was threatening the safety of the ship and the ship's crew. the drone was immediately destroyed. >> tensions escalating with iran. president trump making a major announcement in what he calls was a defensive action and now we know that the u.s. used an electronic jamming device to take down that drone, at least according to the latest reports from the pentagon.

fox news national security and foreign policy analyst walid phares joins us now. this should come as no surprise to anyone, but where do we go from here? >> first of all, on our show and your show, we projected that after the first drone attack by the iranians that there would be other drones related incidents and here we have one today. but this time, it's not happening in neutral air space or inside iran. it's happening at 200 feet or maybe more from a u.s. ship. this means iranians are trying to push a little bit more the red line towards us, which prompted as the president said this immediate reaction of self-defense by the battleship. kristina: if we are going to be specific here, i wanted to bring in saudi arabia. you just mentioned that. the fact that the united states not only are they shooting down a drone 1,000 yards just from the ship but then you also have the united states alluding to increasing their military

presence and working with saudi arabia, so if you have that hostility plus working with saudi arabia, couldn't that mean something's really brewing and coming soon? >> yes, actually, the united states is working with what they call the arab coalition, including saudi arabia, the uae, bahrain, other countries. it's already a fact. the question now, what would the iranians do next, i think you are interested in that projection. kristina: right. >> it seems to me the iranians are going to reply to this incident. i don't know how or where, nobody even knows, even our intelligence, too fresh, but they are now in a deadlock situation where they will have to respond because of the public opinion. >> this is a weird new era of warfare where you have an unmanned vehicle, unmanned drones, surveillance vehicles, being shot down by one side or the other. usually there are people involved and there's an immediate response. we don't quite know what to do around our equipment being destroyed, then destroying their equipment. >> how is, walid, i'm surprised to hear you say you think it's up to what iran does next.

i would think it would be up to what america does next. wasn't this in effect another attack on an american ship? it almost seems as if they are baiting us for a war. should we give it to them? >> no. we should not. we should continue to do what we're doing right now but one little detail is very important, caught my attention. how did we get rid of that drone? not with an anti-missile missile. jamming. this is telling me we are in an era where there is no chance comparing our technology with jamming with bringing down a drone. now, the iranians will try different things but they, too, don't want a full-fledged confrontation. they would lose it. at the same time, they want to intimidate us, they want to intimidate our allies in the gulf, and they want to wait as long as possible. maybe a change in politics in the united states would be the only chance. >> walid, this is gary kaltbaum. it feels like for lack of a better word, we are kind of playing footsie with them with these little things. i know they're big things, but back and forth. at what point do we jump over

the net here in that they're doing some pretty provocative stuff and how long to the point where we just say we're not going to take it anymore and we have to take some offense? >> not the technological warfare that we're doing right now toy to toy that we see. we could see many of those incidents. we should not jump and be shocked. if the iranians or militias, not just in the gulf, in syria and iraq, that's where they are gathering, will harm us, harm our soldiers, it's a different ball game at this point in time. >> although, we are also taking provocative action in the sense that we are with military ships off their borders. this is not a one-sided set of provocations, is it? >> it's a pressure we are applying. nobody is shy about it in washington. the president, the administration have said we are putting all this pressure for the iranians to start withdrawal from iraq and syria. or come to the table of negotiation. i agree it's not a one-sided issue. >> do we continue to allow them to ship oil out?

do we actually take more aggressive measures? what do we do from this point in terms of, you know, attacking them economically? >> the pressure is working. we are going notch after notch. we don't need to be, you know, sudden on them. but at the same time, the iranians have to choose, table of negotiations or are they going to do these pinbrick attacks againstjonathan's point >> is the pressure working? if the pressure's working, it seems the iranians, even to your point, keep upping the ante, escalating. i don't see how you can make the case, the pressure is working. is it? >> it depends on what's going to happen not outside iran but inside iran. the moment you will see demonstrations, the moment you will see order breaking down inside iran, then we are in business. then they will come to the table of negotiation. the most important thing for them is for the regime to survive. >> thank you, walid. trade tensions hitting purchases

of american homes plunges. how concerned should we be? more, next. my insurance rates are probably gonna double. but dad, you've got allstate. with accident forgiveness they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands?

i had no idea why my mouth was constantly dry. it gave me bad breath. it was so embarrassing.

now i take new biotene dry mouth lozenges whenever i'm on the go, which is all the time. new biotene dry mouth lozenges. freshen breath anytime, anywhere. another effect of trade tensions with china, foreign purchases of u.s. homes dropping 36% over the last year. foreign buyers, less than $7 billion worth of residential real estate, down $120 billion from the previous year. the pullback led chinese buyers is driving price cuts in coastal cities, causing new condos to sit empty. gary, should we be alarmed? >> yeah, because the wealth effect has a lot to do with the price of homes and it looks like the trade tensions don't just affect china, it affects here. we yell usa, usa here. i can guarantee you the chinese yell china, china, china, and there is nationalism going on

there about not buying here. the shame of it is we are seeing this administration actually happy that the second largest economy in the world is suffering some here but i got news for you. they continue to suffer, we will suffer to a certain extent also. >> that's what's so frustrating. the president and others have made such a big deal about the trade deficit, but the trade deficit helps us. think about it. we buy things from china, we send them pieces of paper with printed pictures of presidents on them. what happens to that paper, what happens to those dollars, it comes back to the united states. it purchases u.s. assets like homes or stocks or companies, or it gets invested in u.s. banks. so this is the idea we have been making for months now, trade is win/win. yes, the trade war's hurting china but it's also hurting the united states. >> in an alternate reality, before the tariffs and before this chapter of the trade war, this there was a different vision of if you really want china or any potential economic adversary to

become less able to have leverage on you, have them be more intertwined and invested domestically in the united states. that was beginning to happen. but if they have $500 billion or $1 trillion of investments in the united states, that makes disengaging and breaking the rules that much more complicated. same thing happened with japan in the late 1980s. we seem to have eschooed that path and gone towards let's push them out rather than bear hug them in. >> if we are looking at this study, we need to talk about all foreign buyers. if we are talking about the american market, the rate of exchange with the strong u.s. dollar makes it more difficult, you had the return on investment, so flipping homes, a lot of people do that when they come to the united states. last but not least, stability. maybe the stability question, or stability is a question for a lot of people because of the polarization, because of all the stories coming out of the white house. that is just something i would maybe consider. for china, they are still spending a lot of money here. i don't think we can say it's all because of the trade and tariffs wars. there have been issues in china for quite some time.

they have so much debt, a lot more difficult at this point in time to remove money out of the country so that could be playing a role as well. >> that's a really good point. you do have russian buyers that were a huge part of the market in most cities. you had brazilian buyers. there was a lot of foreign money that saw the united states as a haven in an unstable political climate. those climates like brazil have gotten more stable but i do think there's probably a degree of you can't really prove this, we're not sure what's going on in the united states domestically or with tariffs. maybe this isn't the best place to put money. >> we do know the trade war, look, the president made no bones about this, he's happy the trade war is hurting china. all i'm saying is that hurts us as well. that trade with china benefits us. these worries about sending all this stuff we were buying from china, that money comes back, comes back in real estate, other purchases of american assets. to zach's point, we benefit from other people around the world holding and believing and trading in the u.s. dollar. >> that ends that.

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kristina: senate minority leader chuck schumer is calling on the fbi and the federal trade commission to investigate the viral russian-based face app over what he's calling national security and privacy concerns.

the face morphing photo app which says it has more than 80 million active users could be publishing users' data without their knowledge. according to its terms and conditions, schumer says that should raise the alarm for all americans. so zach, you think it's time to intervene and regulate this app even though it's based in russia? >> first of all, all this discussion, this app is now making me perversely want to use it. secondly, there are a lot of other bigger fish to fry than face app when it comes to accessing user data, then using it to sell or whatever they're using it for. the minute you permission any app to access your contacts or your photos, you are largely permissioning them to utilize your personal data, which millions upon millions of people do with thousands or at least hundreds of apps. so i think it's because it's a russian-based one that we're getting a little bit hysterical about this, but this is a ubiquitous problem that is far bigger than this particular application. >> i agree. anything that's involving russia

at this point a year out from the election, it's definitely going to cause concern. will i use it? i will say no. i will say hell, no. i don't do any challenges, i don't do any facial apps or anything of that nature. why? because i think what people are doing is -- kristina: my face looks perfect already, right? >> it's already good. i don't need any improvement. maybe a little powder, this or that, whatever. i don't like to use any of these facial recognition apps because it's going to improve facial recognition and i'm completely against it. >> i thought you were describing facebook when you started talking about the subject here. kristina: remember we talked about that in a previous show, the fact facebook can measure from your nose to ear and has all the measurements of your face? >> all i can say is this. we are back to russia, russia, russia. you know, we are out there, we are everywhere. there's nothing we can do about it. whether it's russia or albania, you know, just know the policy

and all the privatization, all that, and deal with it if you want to get on there. >> the fact is that people really don't care that much about their privacy, no matter what they're saying. a recent study showed only about 30% are actually concerned about their public information and the fact that what did you say, 80 million people have downloaded this? without any sense of like gee, is this perhaps, you know, what you're going to see is more and more amongst big technology companies to emphasize privacy. we have already seen apple really make a move towards privacy. you will see things pop up essentially like good housekeeping seals of approval for various apps and app platforms that say yes. so the idea is not regulation. we need brands to be built, brands that say we will put your safety and privacy first. >> the only people that actually read the user agreement are lawmakers in washington. >> and journalists writing about it. just a quick point to make. when you sign up for this app, it asks to enable your entire photo album. that's the big question. why do they need permanent

access? all of these apps. everybody does it. >> so how concerned really are they? kristina: we're not. we're not. >> they have all your secret pictures, jonathan. >> i have news for you. ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know?

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>> american eagle will sooning offering buy now, pay later purchasing. that means customers can take clothing home and pay for it in installments. gary, isn't this sending a

terrible message to the teens who populate these stores? >> i think they took a calculated estimate on the business, decided to buy a bunch of stuff and get a certain amount paid back. i disagree, i don't do it. but we talk about every business has a right to do what they want to do. if they take big losses, it's on them. kristina: you pay four equal installments. >> is this the big stores trying to compete by offering a payment plan to teens who don't have the cash? kristina: it can get them in the store instead of shopping online. i have a much younger sister who got her credit card too young and just spent it. this is conditioning children at

a young age to spend spend spend. >> they will start thinking it's a quarter of the price or the later payments are going to magically pay themselves. if they are not charging any interest or fees. they are eating the risk and eating the cost which is more consumer friendly than an 18% or 21% credit card. >> obviously sales will go up. accounts receivable will go up. and you know what else will go off? write-offs. there will be a lot of bad credit among teens. eventually they are not going to be teens. they will in the workforce. they figure if you do something good for them now they will stay with nut long term. >> there is loan sharking.

a 15-year-old who can't afford a pair of designer jeans. i'm a capitalist. kristina: that does it for "bulls and bears." thank you for joining us as always. president trump: i disagree with her by the way, but it was quite a chance. and i felt a little bit angry about it. but i will say this, i did -- and i started speaking very quickly. liz: president trump says he disagrees with the senator about ilhan omar at last night's rally. what exactly are the far left progressives are saying and conservatives say americans should know about. we bring you the