check it out. great to see you. >> thank you. >> the only store i like going to. >> so much fun. >> so much fun for the whole family. >> and the american girl doll store. >> foxandfriends.com. >> stay tune for after the show show. newly released hillary clinton e-mails. igniting a new controversy on the campaign trail. donald trump accusing her of pay to play when she was secretary of state. is he right? or are both sides guilty of playing the same money game. hi, everybody. i'm dagen mcdowell in for brenda buttner. this is bulls and bears. the bulls and bears this week, gary b. smith, jonas ferris, john layfield and kathy lynn taylor and o-- >> is there any way to get rid of pay to play. >> there is. >> different term lengths for congress, term lengths, election process and greater transparency.

the problem here is massive. as of june, 12,553 lobbyists were registered in washington, d.c. when you add in the staff with those it's an estimated 90,000 people are associated with those lobbyists, 167 people per congress member and it's about $5 million because $2.6 billion is spent on congress lobbying. all for special interests. you can stop this, but you need an overhaul of the system. look, there's not much doubt that she did, but everybody is doing it. >> well let's talk about the lobbyists. republicans have gotten more money from lobbyists this election cycle. if you look at the breakdown there. more money than democrats, but hillary clinton, tops the bipartisan list, and by the way, donald trump has only received a little over $10,000. hillary clinton number one, what does that say to you? >> i served in the white house and i can tell you that the rules on the government side of this are crystal clear. getting money from a lobbyist does not mean you engage in pay to play.

make that distinction. the problem is that the clinton foundation is a ponzi scheme, on the foundation side where the laws are murky and clintons know that and taking advantage of it. you didn't have these issues come up during the reagan and burk administrations. >> and no indictments, nothing like that, but in what we found out in the new batch of several hundred e-mails, this past week, is that there was an executive at the clinton foundation who tried to put a billionaire donor in touch with the u.s. ambassador to lebanon because of the donor's interest there. >> right. i mean, again, no surprise. both sides do this. the clintons are the masters, the masters back to 1991, when bill clinton decided to take a million dollars from a singaporean billionaire and that basically set the stage for his genius ability to maneuver the billionaire's world. and they know how to use power and use power in other people's favor, to their favor. that's something they've done from the local level at local

municipalities and democratic officials all wait to the international level whether it was sidney blumenthal walking around libya, which you need more clearance than god to get into libya and he's looking for business. this is a problem on both sides but the clintons really know how to master it. >> rampant pay to play, what to do about it gary b.? >> i don't think there's anything to do about it. i like john's suggestions, but unfortunately, you have the fox guarding the hen house here. only one that's going to change the rules on term limits are the -- are congress and they're not going to do that. why? because when you're a politician, you're not in it for the money. i think maybe, you know, after you get out, oh, the the clintons' income when they left $10 million, they've gone a long way from being poor. but while you're a politician what you love most is power and the only way to get that power and keep that power is to keep being re-elected and the only way to keep being re-elected is to service these private

interest groups. the big money. you don't think that donald trump has serviced private interest in the real estate game. we all say it's like politics. you have to gross ov thave to gt the other guy on the back, take money, get things done. i'm sure he's going to do that once he gets elected. that makes sense because donald trump wants to stay in power just like hillary clinton wants to stay in power. you can't change the rules. we just have to live with it. if there's a way to change, i'm all -- i'm open to it. i think it's human nature we're trying to battle in the case. >> jonas? >> hillary is high on the list because people are smartly betting on her to be the most likely to have power in the future. why the clintons raise money. a circular thing. to blame them from taking money, they get offered more money than most people have no chance of being president. you have to organize that. this goes so much beyond how long you're in office or term limits or the bottom line is any billionaire in the world can get any politician on the phone at any time unless they're

blatantly being indicted for something because whether you're giving them cash or whatever the fact that they could help you out of office, even if only in office two years, your kids get jobs at their companies and work for them as a consultant, you can't remove that effect that there's super wealthy people. that's going more and more decades -- you can't end. certain politicians who don't live off of it as much as hillary, for example, bernie sanders, but they're not successful and don't get a lot of policy done because they're not playing the games and they haven't achieved a whole like, like a clinton would because they're not working with possibly somewhat impressionable influences. >> i want to listen to donald trump saying he can fix this pay to play problem. >> nobody knows the system better than me. which is why i alone can fix it.

>> john? >> this is like jesse james saying, i know how to rob trains and banks, therefore i should be head of security. that does not make sense anywhere in the real world. look, can he fix it because he was part of the entire part of the system? maybe. very unlikely. you have to understand congress is full of very crooked people and people that are very much out for their self-interests. in 2011 it was discovered that congress could trade on non public information. we go to jail for that. 2012, the stock act put in place. 2013 they come out and say by the way, this law that was wrip written you cans use it against us because you can't investigate us. this entire system is fixed, rigged and corrupt and as gary says, i'm not sure he can fix it anyway but take 538 members and ship them somewhere. >> look at the list, the lobbyist donations so far this election cycle, donald trump is not even in the top ten on the list. so that does speak to his

ability to separate himself from that money that expects something in return. >> but it's not presidency that you have to worry about. it's congress. gary b. and john have accurately described that. when you look at it is a complete direct correlation between who is lobbying the most and get the most out of congress right now. energy companies are doing great. guess what? energy companies are at the top of the list right now. but it's not so much i think about the system, as it is about what you can do to change the business model of congress. maybe it's overturning citizens united or maybe it's just changing the way congress functions. right now they have to run elections that cost $2.2 million in average elections, right. the majority of that money is going to television ads. >> that model you may not have to rely on all the lobbyist money. >> i agree. the incentives are corrupt. i have a novel idea and it's simple, enforce the laws we have. there are very clear rules and laws within the government for those that serve about this. enforce them. hold people like hillary clinton accountable for the actions they

take. >> but gary b., this what is is so insane and so infuriating to so many americans is that the laws actually -- particularly at the state level, for example, in virginia, used to allow for this. tim kaine running mate of hillary clinton reported $ $160,000 in gifts from 2001 to 2009, perfectly legit under the gifting laws in virginia. and bob mcdonnell, the republican governor was convicted for corruption charges, bribery conviction, tossed out by the supreme court. >> look, i agree that we have great laws on the books. the problem is, these billionaires and millionaires and i'm talking about the politicians, have smarter tax accountants than do the government and the people enforcing laws. just look, let's come back to the clinton foundation thing. basically what's coming out is that this is a huge slush fund for the clintons to make money, pay off favors, to curry

goodwill whatever they do with it. it's not a charitable organization. i think we can see that. that's the way around it. no one is going to come and say the clinton foundation is illegal because they will say look, this is our charitable way of giving back and all that other jazz. so there's so many ways to circumvent this. like i say, you're going to find a way. it's human nate. human nature will want to get the money and keep being re-elected. until we solve that problem it's academic to talk about it. donald trump will not stop the problem. when carl icahn gives him a call and says i want to donate a few million to this cause you better believe donald trump will take that phone call. >> donald trump will fix it, final word. >> i question the way he knows more about federal influence than hillary clinton. i think that's not likely. most of his influence peddling if there was any was on a local and state level with zoning for casinos and stuff. it wasn't -- he's not this guy -- he doesn't own a drug company getting policy around obama care shifted in his favor. that's not his background. he might like to imply that.

i think hillary knows more than anybody. doesn't mean him or her will do anything about it. >> thank you. cavuto on business 20 minutes from now. what have you got? >> hey, dagen. right now raking in record taxes while racking up record debt. which nominee's plans will balance the books. the bomb shell report says the fight against isis isn't going as well as some military leaders want you to believe. some say it's putting our way of life in danger. >> thanks. up here first, retail sales stalling, stocks soaring, to new highs. so when it comes to the economy, does main street have it right or wall street? we debate. you decide. next.

this is a fox news alert. i'm elizabeth pram live in washington. major problems across the south with a state of emergency in places as heavy downpours trigger flooding in louisiana and a broad stretch of the gulf coast. officials say at least two people are dead as rescue teams step up the search for another missing person. forecasters say the situation is far from over. louisiana governor john edwards expected to hold a news conference in the next hour with an update on the crisis. and in new mexico a police officer is dead after being shot during a traffic stop in the town of hatch. 33-year-old officer jose chavez was shot in the neck bay passenger -- by a passenger in a stopped car. two other men inside the vehicle. officials say all three were later arrested after a high-speed chase. i'm elizabeth pran. back to "bulls and bears." ♪

the markets hit new highs this week but individual investors not feeling the high. they're cashing out of stock mutual funds. shoppers are feeling low, retail sales stag nance last month. who has it right, main street or wall street? jonas, what do you say. >> main street has been pretty negative since '09. economy across people who have money since then waiting for the bottom to drop out and you know, the bottom line is, is not the greatest economy in the world but the stock market continues to do well, has done well for many years, and it's because largely because rates are low, but also because wealth globally grows and not main street wealth, it's the upper -- that money has to go somewhere. to quote a line in a movie, how many yacht cans you own. you have to buy stocks no matter what because rates are low and that's where the money is going to go. it's not everybody's economy so you don't feel comfortable about it. >> gary b. who has it right, main street or wall street, new highs on names like amazon, tjx,

ross stores? >> by the way, dagen, that's where all the retail sales are going. yeah. the old-line retailers like macy's and, you know, those, they're struggling, but because we're all shopping at amazon these days. but i think that wall street has it right in terms of the stock market and the reason is, this might be the only time you're going to ever hear me say this, is that the obama economy, as horrible as it is, has been good for the stock market. you know, under the obama thinking or whatever, planning, the stock market is up, inflation adjusted, 100%. that's better than it was under reagan. that's almost bill clinton levels, better than both the bushes, better than jimmy carter. that's pretty significant there. i don't argue when the market is making new highs. it's telling us something, maybe jonas has said we have no other place to put the money and low interest rates, but right now if we had eight more years of

hillary, god bless, probably should be good for the market. >> wow. >> john, please -- >> not good for anything else but good for the market. >> because the insanity is, as an administration, you make the economy so awful, that you need central bank to intervene and use the stock market. so makes sense with that logic, john. >> i'm sorry. i was shocked when gary b. said eight more years of hillary. something i never thought i would hear come out of gary b. going to the stock market that makes a lot of sense. it's a bifurcated story and both sides are right. main street has apprehension about the slow growth but wall street is spot on just as gary b. says. the reason is comparison. look, 80% of government issued debt out of japan and germany are for negative interest rates. 60% plus of s&p stocks are yielding higher than our own 10-year treasury. we are a bargain for money. any problems in europe and asia, money flows into u.s. equities

and that's what we're seeing. >> kathy, who has it right, main street or wall street? >> main street. jonas is right institutional money has bailed us out time and time again but what happened after the clinton, it was economic disaster. we're still recovering from bill clinton's economy. and there's not a lot to be excited about. the thing is that main street and wall street, there's an intersection and when one isn't doing well the other will not do well. whoever becomes president inherits an expensive obama care disaster and outdated uncompetitive tax code, a lack of infrastructure and jobs and infrastructure, and a global economy that, you know, between possible contagion in venezuela, huge pressures in europe from decades of poor growth policies and loss of pressure from the refugee crisis there's not lots to be excited about. in washington we like to say never make summer vacation plans in august. >> wow wow wow. so i know that we're still suffering from bill clinton's economy. i thought we were still

suffering from george w. bush's economy and income inequality. i think the political landscape shifting and political internal landscape shifting so that people like me as a progressive as a populist i fear an economy under hillary clinton in a lot of ways. she came out and said she was going to invest money into infrastructure, something that donald trump has not said. he has not got into details. now does that mean that's going to be good for main street? i hope. that's what we need. that's why when barack obama put in tim geithner, that shows a lot. >> we're still suffering from fdr's progressive policies. >> we are. that's when people believed the government would fix everything and that's a big lie. thanks, guy. "cashin' in" just over an hour from now. >> how the main street reaction to donald trump's second amendment comment may prove they're obsessed with his controversies and not his substance. is bernie sanders going from being a socialist to a raging capitalist?

"cashin' in" see you at 11:30. >> we'll be watching that for sure. up here first, planning a getaway before summer ends. what if i told you the government may be snooping on your travel plans. and making a killing while doing it. we'll explain. next.

is. coming up uncle sam may be watching your travel plans and cashing in while doing it. with the rio olympics in full swing one

worried that the government is snooping on your e-mails and phone calls? you will not like this. a report showing the dea often monitors americans travel records searching for people transporting drug money and the

feds seizing the millions in cash. gary b. is not happy about it. >> not only do they take the money and they don't charge in most cases the drug whatever they are mules or whatever, with criminal offense. this is a way to fund police departments, law enforcement, sometimes makes up 20% of their budget when you use the information to fight terrorists i'm fine. use it to gather money for no criminal reason i don't like it. >> kathy? >> i don't think profiling is a dirty word per se. businesses do it to serve you better. doctors do it to assess you. gary is right. we have to uphold innocent until proven guilty in the country. the foundation of who we are. if someone is guilty take the money but charge them as well. >> they're innocent they don't have to give the money to the government. they're crooks and know it. they are getting off scott free. i don't like this on a local level. stories where they take cars and money from people, seize it because they think they're drug dealers. this is interesting on a federal level because it lower taxpayers

costs and putting people in prison what does that serve? this reduces the incentive to do a crime and yet maintains their ability to go legit and realize that was a dumb career path. i think it can work. >> thumb's up from jonas? >> thumb's up because as long as companies are doing this getting away with it as kathy said, i would rather have the government searching and seizing money, like they got $509 million in 15 airports, $209, 5200 people and those people are informants. if this reduces which i do think drugs is a form of terrorism and keep that in mind we would not have the drug dealers in our country if we did not have terrorists in afghanistan fueling it. >> john, you're a money bags, what do you say? >> the problem like gary b. says the incentive could be a problem because they consider this money in the budget before they find the money. so that incentive can be a slippery slope. however if you want to stop crime, you stop the money flow and that respect i am -- i have no problem with this. >> don't carry bags of cash in

airport from the train station. that simple. thank you. special thanks to kathy and naomi from joining us today. >> michael phelps and see moan biles aren't the only ones winning gold. you can run an errand. (music playing) ♪ push it real good... (announcer vo) or you can take a joyride. bye bye, errands, we sing out loud here. siriusxm. road happy.

(announcer vo) you can commute. (man on radio) ...40! no flags on the play! (cheering) (announcer vo) or you can chest bump. yo commute, we got serious game. siriusxm. road happy. predictions. gary, go. >> delta passengers had a pretty rough week as did the airline but people are still going to be flying the airline for airlines they care about one thing, oil prices and they're low. delta up 20% in the year. >> jonas? >> they get to spend the money to fix the commodore 64 flight system. >> john your repre dixions. >> only buy good stocks and dividends. vodafone has a 5% yield, up 20%. >> gary, you like it? >> if you like that sector stay here in the u.s. with verizon. that's the way. >> jonas, your prediction. >> her name is rio. the best thing about the

olympics, brazil was in a bad thing with the worst stock market anywhere over the last five years, zika, and pollution and the corruption. but it's turning around with the olympics. small cap brazil. >> john, thumb's up or down. >> the green diving pool and you will invest in brazil? >> bye, guys. hillary clinton short circuited again to use a now famous term, when she accidentally told and said she wanted to raise taxes on the middle class. >> donald trump wants to give trillions in tax breaks to people like himself. he'd pay a lower rate than millions of middle-class families. >> the plans are out and the gloves are off. hello, everyone. i'm charles payne in for neil cavuto. hillary clinton and donald trump rolling out their tax plans but do eat door anything about our record debt? to ben stein, charlie, julie and larry glazer. dagenher usual