. from washington, the mclaughlin group, the american original. for over three decades, the sharp pest minds, best sources, hardest talk. >> i can confirm that we have the united states department of justice are investigate the practice to determine whether it violates insider trader laws. >> high frequency trading.

the computerized buying and selling of stock shares measured in milliseconds, is now under review by the justice department and securities and insurance change commission. high frequency trading, has become commercial since the flash board, a call streak book by michael buras. the former sales bonds man has a two, the -- tier. stock exchanges such as the new york stock exchange sell bulk information about pending buy and sell orders through high frequency trading firms. they use computers or software or algorithms to analyze the data and calculate the price of

stock at such high speed that they can buy or sell in fractions of the second placed by other investors, locking in small profits per share multiplied by millions of trade. it's highly lucrative. constitutes 50% on all exchanges. sit unfair? those trade terse with the fastest computers have the advantage. it doesn't violate insider trading laws which bars profiting from confidential information. nor is it wire fraud or front running., when a broker buys in advance. high frequency trading falls into another category, tech no

logical disruption. it's from how to communicate to data minded probribe louis drones many believe. high frequency trading, is advancing too fast. pat buchanan? >> john, i don't see this has in fair use thing as michael lewis. what this is, is these computers, as enormous speeds, are fighting against other computers. if they sell $10 million theirs and they catch it, the public, half will benefit and half will lose from each trade going on. i don't see the me leave lens here in this thing but i think it's something that needs to be

looked at. it's a form of high speed trading by computers. >> 's game the system and it's the rich vs. the super rich. rest of america is on the sideline. >> you're not knocking stock market investing, are you? >> no, investing is fine. this is people who can locate servers near wall street and it's a competition to get as close as you can. it's working on algorithms. you eliminate human judgement and a certain number of people play this game. again, the rest of american is playing by a different set of rules. there is an inherent unfairness about it. it's bond the scope of regulators. i'm waiting on one who

understands to get on this. she has not gotten to this. >> maybe hillary is advancing her position. >> hillary clinton is going toe have plenty to say about finances and so forth. >> i mean advancing her opponents position. >> if you look at of trading on wall street going back decades, there are people who have a technical advantage. they're able to get information before the broader market and trade on it. this changes the speed of it and the availability of the information. i think it's going to continue. i'm not sage it's fair but there is no way of making sure all the information is distributed. whether it's trading speed or what have you, that's the nature of the market. >> what can you do about it? you can't stop it.

you believe that. >> you can empower the fcc. the fbi, for example, i'd say one of the advantage to this is the reduction of the spread with these super computers over the high frequency trading, all of us, to some degree, benefits from the liquidity. with capitalism it logic follow the money trails. it isn't insider trading so much as technology taking advantage. >> you don't think flash traders have the advantage? >> yes they do. the guys on wall street have always had the advantage. now they've got this new highly computer way of doing it.

they don't get hours ahead of time or minutes. it's the computers warring against the computers. >> there are several investigations and looking at whether it via lates insider trading. it's not the american way. >> hold on. revelation or rant. high frequency traders say their practice benefit markets by increasing liquidity. little of this appears in lewis' book. ask "the lack of counter balancing voices means that flash boys sometimes feels more like a rant than investigation ." if flash traders are ripping off the ordinary reischel investors, why are they flocking to the stock market more. >> because they think they're

going to make money. people have made al lot of money in the stock market. it's because of lower interest rates that have pushed up the market values. i think they's the fundamental drive. people are going to look at it based on fundamental economics. it'll been going on forever in the stock market. >> have you advantaged yourself by flash trading in. >> no. i almost never trade in the stock market. >> through any broker? >> i don't trade or invest in the stock market. >> what's the secret of your success? >> i have a longer term view than milliseconds. you derive your wealth on real estate. you just try to discourage

people from play the market. >> you have to be careful. i'd rather invest in mutual funds. >> i take it you play the market a lot. >> i have a smooth port folio i hope will grow. i enjoy selling the market. you want to take advantage of an economic opportunity. the recession has made de appreciation in value. >> half of americans are not invented in the stock market. they feel it's rigged against them. >> people don't have the money to invest. >> does high frequency trading help or harm individual investors. >> it's 50/50. every time a trade goes down it goes down and half are happy and half are not. >> it benefits a small number of people at the expense of the greater good. these people don't make anything or contribute to

society. they're pushing computer buttons. >> tom. >> in terms of the reduction of the spread there is an advantage for lower level investments. that reflects why it's supports in the stock market. >> i agree with. that i think it's inevitable. it's a part of the system, the way we invest. it will continue to go on. >> for anyone other than day trade toreros, the advantage is negativeject. >> mclaughlin group has their own website, mclaughlin.com. whenwecomeback,presidentobama rat eshispresidency.

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the new radioshack is finally here. the store of your past is now the store of your future. come see one of our remodeled stores and save 50 percent off skullcandy headphones. or get a 20-dollar gift card with air raid speaker purchase. . obama's labor rates. >> what grade would you give yourself for this year? >> good solid b plus. >> president obama has always had a fairly high estimate of his own job performance. his recently exclusive interview on air force one is

no exception. 41% approval rating, 55 discuss approval, a poll showing a plurality of americans rating him as the worst president since world war ii topping george w bush, hish chard nixon and jimmy carter. president obama thinks he's doing well. his russian reset worked he said. >> we had a very productive relationship with them. we got a lot of things done we needed to get done. we have to respond with a result in what effectively are regional challenges that russia presents. we have to make sure they don't escalate where suddenly nuclear weapons are back in the discussion of foreign policy.

as long as we do that then i think history is on our side. >> how about the economy with gdp growth heitmeiered at 1% and the most sluggish recovery of post war history. >> since i've come into office there is almost no economic metric by which you couldn't say is u.s. economy is better or corporate is better, none. >> libya is a flame, isis on the offensive and boca ha him raging war in nigeria president obama says this. >> a u.s. security presence is always a source of ambivalence everywhere in the arm. if we're not there people think

we're neglecting them. if we are then they think we're mill ta rising a region. i think we got it right. >> president obama gave himself a b plus one year in to his presidency. now at five and a half years what should he give himself and why. >> most give him c. i think he's basically correct with regards to russia. once they over through the government in kiev and what happened with putin, what he's saying is look, we have to manage this problem. we're not going to take it to a situation where we're putting intermediate nuclear range missiles on either side. we can't control that situation so i don't disagree with the policy he's conducted in the

ukraine toe avoid a head-on clash with russia. >> how much does the obamacare act enhance his standings with people. >> the president did say that american is still the indispensable nation when it comes to certain things. he said we can't.com alen and the world is too complicated. on the affordable care act he said it's messy but a lot more people have insurance and the rate of inflation of medical care is the lowest it's been in 50 years. i do believe obamacare is a permanent part of the safety net and will be regarded with the same sort of level of respect that social security and medicare is given in the

future. >> do you think the affordable care act was frightening in its impact on obama's character? >> i think it galvanized the growing sentiment on the republican party and independents as well. i think the concern with obamacare, and to some degree i agree with those, it's going to play out over the longer term. my issue is supply and demand. if you're failing to address significant cost pressures in healthcare, if you think about the metrics, the americans are paying twice what a lot of people are paying around the world, it's not value for money. my concern is that obamacare doesn't address. that you need massive reforms to do that. the moral agenda has dominateed

the president's policy and the nation's policy away fra the reforms needed. >> president's line is that people could keep their insurance. did that damage his poll ratings on trust issues. he took hits. >> i want to go to the growth in the economy. it's grown by about 27.1% for the last five years which is the lowest rate of growth coming out of a recession we've had ever. that only took place, not because of the fact the economic environment was that good. we had a stimulating monetary poll policies. we've under mineed the value of the dollar and this is not representing a good economic policy. there were all kinds of thing we could have done and didn't do. he lost the confidence of the

business community in terms of where it counts which is investments. >> the national debt is $16 trillion spushing 17. is it has bad as it sounds? >> yes. it's going to be a burden for generations. we don't hear much about it because it's being taken for granted. it's going to be an issue for what we're going to be able to do. >> do you think it's damaging our relationships around the world. are they taking advantage of it like china? >> that is where the problem comeless in, in a way. we have a situation where we're lose the competitive edge. not totally but in many areas. part is lost to countries like china. we're not investing in capital improvement to the extent we can because we have these huge

deficit that is we're not devoting to these issues. >> we're not investing in those things because the republican congress won't let us. we is have a higher deficit than the 80s. we're pay the same amount of interest. the interest rates are solo we should get every dollar we can from china. this president's record on the economy is not nearly has dismal as others. >> president obama used the interview to take swipes at republicans, tea party and get this, in a moment of candor, what he told joe the plumber in 2008 about spread the wealth around. >> my obsession, since i came into office, and will continue to be my obsession until i

leave office is the broader trend of an economy where those at the top are getting a larger and larger share of gdp, increased productivity, corporate profits and middle class and working class families are stuck. this is the big challenge, to me. how do we preserve the dyn amsm of the capitalist system while making sure that the distribution of wealth and income and goods and services in that system is broughtly based. it's widely spread. >> question, use the terms conservative and liberal, president backstrom is liberal but is he a socialist at heart. >> what he said to joe the

plumber was socialist. what he said in the interview i don't disagree with. i don't mind people having their planes or whatever. he said what i am deeply concerned about is it's middle america and it's not growing. it's unfair for the society. >> he makes the point that his policies are not punitive. if people have their house in the hampton and their private planes, enjoy it but the rest of the folks. >> quickly, quickly. >> there is a -- let me, i mean if you're going to mention. >> the natural inequity is the biggest issue in the campaign. >> the question is where does the money we spend go to. i would've spent more on education. i would've done something to revolutionize healthcare. he could have reduceed the cost

of healthcare, increased education and changeed the distribution of health. >> how many votes would you have gotten for that. >> we'll be right back with predictions.

. >> predictions, pat. >> economy flat, eu economy flat, japan contracting.

consumer sales flat. we're heading into a recession. >> no recession. >> is that a prediction? >> the bank will be reauthorized. >> chris christie republican nominee against clinton. >> we won't have a recession in the contraction of the economy but low growth for the next several years. >> north atlantic treaty organization meets in wales in september. i predict is agenda will be from the happens in the ukraine. nato will propose higher december fence spend. as the new threat posed by russia, and i think i speak for the numbers of the panel but even if i don't we wish you a nice labor day weekend with a

minimum of labor. bye-bye.

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