tv Markets Now FOX Business September 16, 2013 1:00pm-3:01pm EDT
again, looking for the growth side of this recovery. we have been through the trouble spot. cheryl: you like the banks, bank of america. i know you have been watching the financial sector from an investment perspective. the trading perspective. the dow is up 34% in changed from where we were five years ago today. even more so if you take out the lows of 2009. do you feel good about where the market is right now? >> clearly if we could do a deal over, when it be nice? in those days people were scared to death. wall street typically when it holds a fire sale everyone is afraid to come. the market, the performance of the market has been remarkable when you think where we were during that time from and where we are today. whether it is justified are not, of course, that is in the eyes of the beholder. i would say that the pieces are in place. cheryl: all right. i want to thank you for joining me outside of the steps of the
new york stock exchange. sending it to you in the studio. the president saying it is about the middle class and they're is a long way to go. at least today the markets are celebrating not news about the anniversary, but at least rallying nonetheless. adam: the other big story, larry summers pulling his name from consideration to become the next chairman of the federal reserve. i'm adam shapiro. lori: i'm lori rothman. the field for the new fed chief was down. the front runners to head the federal reserve. adam: tying nat to the firm where he works. try telling that to the firm, atomic research group on why the firm is putting its money on janet yellen. lori: five years removed from the financial crisis. you heard the president. five -- plus whether he agrees with the presidents take and what needs to be done to avoid another economic crisis.
adam: watching aig implode. we have exclusive details in an interview with the insurer's former chairman and ceo. lori: let's get back down to the floor of the new york stock exchange to check in with nicole petallides. this numbers really giving us a nice rally today. >> indeed. as he basically told obviously the heads of our administration that he is not going to look to be the head of the federal reserve. and so with that the idea is that people believe weather not it is true or not that money printing will continue. a lot of optimism. stocks are flying high. not too far off of our record all time high. gains across the board. the banks of doing great. hollanders are doing great on the fact mortgage rates will remain low. ten year treasury. a name like apple has been under pressure. a lot of green arrows. back to you. adam: thank you very much.
breaking news from the white house. president obama finished his speech on the five-year anniversary on the collapse of lehman brothers. live with the latest. bring us up to speed on some big issues that the president touched upon, the national debt as well as the debt ceiling. >> good afternoon. the speech began as a way to look back on the 50 year anniversary of the financial crisis. started out by talking about the millions of jobs that have been created since he took office because he says that much of the action is administration took to rescue the economy for the first couple of minutes. after that it became a full on congressional bashing session trying to give republicans to make sensible budget choices and to stop making threats because republicans are potentially making the economy worse. >> i cannot remember a time when one faction of one party promises economic chaos if it
cannot kate wondered percent of what it wants. that has never happened before. but that is what is happening right now. >> with that president obama also says he refuses to negotiate over the debt ceiling. he says that is not something that should be negotiable. republicans are holding it hostage. it did damage to years ago by doing that. meanwhile, republicans are still trying to figure out what they're going to even offer or want to get in exchange for increasing the debt ceiling. the treasury department says we have until the middle of next month to figure this fallout. the president also sang the because the fiscal responsibility of the administration, deficits are, indeed, falling even know he says republicans are calling for what he calls draconian cuts in the face of a better fiscal picture. let's take a look at what the president's poll numbers are when it comes to his performance on the economy. 37 percent approve of his handling of the economy,
60 percent disapproved. in september of 2012 it was 45, 52. this type of prolonged fashion. 3462 against the president, still waiting to get reaction. all that will say is that i thought we were supposed to talk about the fifth year of the anniversary. this is just a bashing session. adam: as soon as the republicans respond i am sure you will have that for us. lori: pretty much forget periods slow growth. give us more than that. senator elizabeth warren throwing her support behind janet yellen to be the next chairman of the fed as larry summers takes himself out of the running. big news. let's head straight to peter barnes joining us with more. >> reporter: a member of the senate banking committee which will hold confirmation hearings for the position of fed chairman.
also one of the leading democratic progressives who once janet yellen and to oppose larry summers. in an interview this morning she declined to say specifically why she did not want summers for the job but hinted that she felt he %-regulation and less likely to support continued stimulus for the economy. >> it is important for monetary policy, the sole question of trying to keep the economy going as alan greenspan did, ben bernanke, keeping interest rates low, but it is also powerfully important from a regulatory perspective, particularly with the too big to fail bank. >> reporter: analysts say she is not an issue in. might be looking at roger ferguson. of course there now might be maybe a remote possibility that the president could ask ben bernanke to stay on.
declining to comment on whether she would oppose any one but yellen. a strong resonate. good judgment and works by building consensus. lori: thank you. adam: we have janet yellen and kaelin looking like they are the front-runners. so surprisingly enough his very own firm, atomic research is backing yellen, is chief political strategist joins us to explain why she might seem to be the better choice. it has nothing to do with qualifications and a lot to do with public perception. >> it has nothing to do with that at all. i think he would be a great fed chairman. bright, very decent man, not an ideologue. what i wrote and what we said today simply is illogic points to janet being nominated. i think at this point, he said
i'm going to look for someone else, quite a blow back in his own party. a lot of it with a revolving around gender issues. adam: when we talk about qualifications, he spent his whole career at the federal reserve. the vice chair. he has been there in good and bad times. the right hand man of ben bernanke. wouldn't he be more qualified to take us out of those policies we have lived through in just these past five years? >> i think they're equally qualified. she ran the san francisco fed. again, he would be a great chairman. i strictly look at the politics of this. getting support on capitol hill. this is a president who has seen his own democrats defect on syria, a lot of his own democrats defect on larry summers. does he want to do something even more provocative and overlook her? i think it makes no sense politically. adam: might there be a problem
not on the political side, but on the history side. for instance, a speech in 2005 in jackson hole where there were economists raising red flags about the shadow banking system. here you have donald at the federal reserve saying essentially don't be worried. the repeal of glass stiegel makes our system more able to react to problems. he was wrong. >> i think he is in a pretty large category of people is said that. a lot of people at the fed did not see that as a big issue. i think if you look at basic monetary policy they are pretty much the same. so if they are pretty much the same, if the president were to reject her people ask the question, why did you do this. i think this gets into a gender issues which is the last thing that this beleaguered president needs right now. making a decision based on
gender alone would be the wrong decision. we have talked about potential dark horses. is there anyone else's name should be discussed? >> probably tim geithner. he was that the fed, the president of the new york city fed. he knows the system. the players. he does not want the job. he would like to go out and make some money. this is not what you would want to do right now. if the president of the united states calls you and says we need you, it's awfully hard to say no. adam: when they accept the nomination are say this was the man who was at the helm of the federal reserve bank of new york before the collapse. >> done a great job, but it could be a tougher vote. it could easily get 65 votes. probably 65. either one would be far easier to confirm. adam: all right. thank you very much.
lori: you mentioned before the collapse. five years ago today. a much darker day on wall street. we are back at the new york stock keychains for a look back. adam: after the fall, a look at the financial come back or lack of comebacks since the disaster performance. lori: a bigger surprise. the man forced to watch from the sidelines. the a exclusive interview still ahead. ♪ ♪
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very interesting to see it from the perspective of europeans obviously. i was in my hotel room calling the floor every few minutes. when i went down -- i finally had to get to the lobby. i was pacing in the room. everyone was totally glued to the television set. there were all terrified. everybody said what is going on in america? i really was the only person with a connection. i was quite a popular person, i will tell you. lori: i was in california. if you look from then to now, the dow is up about 33%. 34 percent. gold more than 70%. do you think that we have come back or do you look at the last five years and think it was a lost five years? >> not all lost five years, but it was for a lot of people. i think there has been a tremendous disconnect between the market in the actual recovery for the average investor in the person on the street. you cannot forget in a moment of panic a lot of investors sold stocks.
they have not been able really to recoup. investors i just beginning to make their money back. for that reason i think that a lot of people i've not been able to participate in this market as an average investor. >> it's a difficult market to understand. i think it is a very difficult market. a lot of different options. i think sometimes too many choices and not necessarily confidence inspiring. lori: may be overseas, but i huge perspective when it comes to basically the financial pain that we fell five years ago. we should say from the lows of 2009 until now, up 100 percent. we have to remember that the market has come back at least on a percentage basis. back to you in the studio. of course live with the sun coming out in front of the new york stock exchange.
lori: thanks. let's send it over to nicole, looking at the big banks of the last five years. only one of them in positive territory. >> taking a look. we love covering what we have seen. here we are. the markets. testing and to new highs. you look at the banks. bank of america, morgan stanley. the only one that seems to be is city down. bankamerica 15%. you can take a look at some of these charts. when we talk about the financial crisis, the dow jones industrials itself down about 6500. now we're pushing that park. here is a look over this time. it's a little tricky. again, down 75%. bankamerica down 58%. 34 percent. 25 percent. so we're really trying to give you the inside glimpse of the
last five years. i know that the banks is doing well recently, but still have not recouped as well. lori: thank you so much. amazing how far we have come. up 100% for the market. the financial crisis began five years ago. so all the talk today. the influence on the market, perhaps he will hold out as fed chief. summers is out, but could alan blinder be a contender? we will ask the former fed vice chairman what he thinks about his name being floated out there as a possible replacement. adam: america's richest. we will tell you who is an. the surprising name that did not make the cut. lori: breaking news. the latest on the deadly navy are shooting. for the latest on that next.
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>> it's 22 minutes past the hour, i'm laurin remit your fox news minute. police are reporting several fatalities after at least one gunman opened fire at the washington navy yard this morning. one shooter is dead, and to additional suitors may be enlarged. four people were injured. the d.c. metropolitan police department of another press
conference. president obama offer is condolences. the president made remarks before his scheduled speech about the state of the economy five years after whether chemical weapons were used, none knew was responsible. now back to lori and adam. lori: many thanks. getting back to the markets, stocks and rally mode. the dow is off session highs. charles here to help you make money with a look at las vegas. >> it's so tough. take a gamble. the market like this, people grapple. you don't want to chase. people probably should consider chasing gary not the first time
i mentioned it on the network or the show. oppenheimer came out and said that the daily run, obviously the big-name, the gambling capital of the world. it's about 25% so far. rbc said 27 percent. a lot of things going on. from september 19th until the 21st. a legal holiday. october, the golden week. china they actually encourage people to go on holiday. a big demand coming in. the stock is breaking into a huge move right now. the execution is turning around. a swing of earnings misses. i think there will continue to be dead as they do the stock should continue. lori: the driver for quite some time. how is las vegas in and of itself? >> you know, just so-so. every now and then there is a little sign of life and then it fades away. really this is where the growth is. it's just amazing and absolute
growth. from now on based on what happens more so. adam: you're looking much further out than just a holiday that there not -- the fall and october holiday. >> and thinking that china will start to ease some of their visa restrictions for chinese citizens going in there and i think macao will continue. this growth has been mind-boggling, but a lot more to come. lori: i was in vegas and it was hopping. adam: rick folbaum. you know who he is making a lot of money. bill gates. microsoft's chairman and co-founder is number one on force richest americans less for 2013. topping the list for the 20th straight year with $72 billion followed by warren buffett with just about 60 billion. the youngest billionaire, not lori. mark zucker bird comes in at
number 20 climbing from 36 last year. interesting to note that he was also the second-biggest gainer in terms of dollar amount adding over nine and a half billion to his fortune. missing from the list, tebow and pickens. lori: for what it is worth, i am rich in good friends. that is all that matters at the end of the day. former fed vice chairman alan blinder is our guest next on it will be chosen to succeed ben bernanke if he leaves at all and what he thinks about his name being floated out there. adam: you cannot miss this. charlie gasparino exclusive a former aig chairman and ceo hank greenberg coming up. ♪ you know throughout history,
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adam: time for stocks as we do every 15 minutes. we're going back to the floor of the new york stock exchange and nicole petallides. dow up right now. can we go any higher? >> so far so good, right? if you're a bull on wall street and hoping to see all-time record highs, not a bad day for you, right? the dow jones industrials are up about 150 points. we're off the highs of the day, however it's a record-setting day on wall street. the nasdaq traded to the highest levels since, in 13 years. let's just say that we're also seeing the s&p 500 back above that 1700 mark, right? we haven't seen that since august. that's worth noting. also the dow, not too far off its all-time high of 15,568. a lost winners here. back to you. lori: nicole, great stuff as always. thank you very much. dubious anniversary here. five years ago this leak lehman brothers collapsed
triggering a financial meltdown still be felt by the global economy. my next guest says the financial lessons not learned has him concerned. alan blinder, princeton economics professor, former vice-chair of the federal reserve board of governors, author of, the after the music stopped, the work ahead? alan, welcome to you. >> great to be here. lori: like to begin with the news out yesterday that larry summers is withdrawing his name for the race for chairman of the federal reserve. you've been a vocal supporter of janet yellen, writeing a op-ed in the journal supporting her as fed chief. your name is being floated as another potential successor to ben bernanke? would you want that job? >> would i want the job? it is hypothetical question, i suppose so. but i certainly don't believe it will be -- certainly hasn't been and don't believe it will be offered to me. >> do support janet yellen. >> i do. lori: if you look at the market
today, the market is very much in favor of janet yellen, she is, at least according to a lot of the commentary likely to be more dovish with her stance on monetary policy. do you agree with that take and the market reaction? >> yeah, i do. i think it is easy to exaggerate. not like if larry summers would still be in the race we would be in a contest between a super hawk and a super dove. the difference is on a much smaller scale but i think there's a difference. i think the main market reaction, janet yellen represents a continue ages of the bernanke type policy. larry summers would have raised the question of maybe a departure from that. lori: is that what this economy and financial market needs a continue ages of the bernanke style policy? what is your view on that, alan? >> i think so. i'm, you know, if anything, i'm wondering about why the fed is tapering so soon whereas some other people as you know,
wondering why did it take so long for the fed to taper? the economy still doesn't look that strong. it is a lot better than it was in the days of the catastrophe, but still not very strong. and not growing that strongly. lori: what is the likelihood the fed, which we will hear from this week, ultimately says, no taper? there is no inflation in the system whatsoever, correct? >> right. probably less than a half. i think that is the market view, that it is better than 50/50 guess that the fed will begin to taper. based mainly on its own previous statements. and i guess, i agree with that as a prognostication. i expect though not with overwhelming likelihood, that the fed will start to begin tapering. >> let me get your take on where we are today with the financial markets and banking industry, five years after the fall of lehman brothers, credit crisis that proceeded that. you're on the record, the financial beast has gotten its mojo back. you do think big banks are still
a threat? >> i do. first of all they're still big which is sort of inevitable. secondly they're still very interconnected. thirdly we still have this wild and wooly derivatives market that has not been nearly tamed. it was a good separate to repeal the 2,000 act that banned regulating derivatives but we still have to start enforcing the regulations that is an international problem. you still have the rating agencies compensated exactly the way they were. you have this problem with this skin in the game requirement on mortgages getting whittled away almost like it looks like nothing. barney frank said he thought that was the most important thing in the dodd-frank act. i don't think it is the most important but it is certainly an important thing. so, you know it looks like the, the dodd-frank act is a bit withering on the regulatory vine. lori: do you think ultimately
dodd-frank will be implemented? it is watered down. it is so devisive, volcker rule in of itself, it is so confusing what has been implemented and what has yet to be determined. where will all this fall out? >> that's a good question and nobody knows the answer to it. we know what the law says and we know that the law obligates the regulators to promulgate regulations and then start enforcing them that are consist tented with the law. we're more than three years now since the law was passed. a lot of this work has not been done and you, it starts making you worry that, you know, not literally, but figuratively you drift into a common law regime which is contrary to the written law and things just never get done. that's why i felt compelled in my last "wall street journal" piece and i'm not only one, to start yelling about this. we shouldn't forget about it. lori: the president taking the opportunity on this anniversary in a sense to yell at republicans to say, stop getting
in the way of getting my policies instituted here. what did you think of the president earlier today? >> well, i'm sorry i was teaching and i didn't hear the speech but the spirit of it is correct. one of the one of the many, not the only but one of the reasons why the regulatory agencies are so slow getting this work done is that their budgets have been squeezed. they have been given many more responsibilities either no more resources or actually fewer resources of the not like these regulators are loafing around and going to the beach. they're working on it but the workload is tremendous relative to the number of people doing it. lori: that's important perspective and we thank you for your time, joining us on this fifth anniversary of the meltdown. alan blinder. >> thank you. lori: thanks. adam: looking at the past now, looking at the future. let's talk about twitter, the big money backing twitter, one of the original investors is vowing not to sell one single share as it goes public.
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source close to the transaction says the deal is worth 30 to off million dollars. industrial production rose in august. the federal reserve said industrial output increased .4 of 1% last month after being flat in july. the rise was the most in six months. chrysler could file documents for an ipo this week. sergio marchionne, ceo of the u.s. carmaker and its parent fiat, indicating this to the financial times. he didn't think fiat was getting closer to agreement to buy rest of chrysler health care trust which still owns a 41% stake. that is the latest from the fox business, giving you the power to prosper.
to monetary tightening possible. sandra smith joins from us the cm. she has got the latest reaction from people in the pits. >> hey, adam. it is always good to get back down here on the trading floor and get the real color of the markets and one thing a lot of traders are walking buy to say to each other today, are you seeing what is going on here? this is unbelievable this move we're seeing obviously in the stock market. triple-digit move to the upside. s&p 500 flirting with all-time highs. gold prices up 10 bucks on the session. bond prices soaring. yield on 10-year coming back down. you have movements across the board in these markets? why? because of exit of larry summers for race for federal reserve chairman? this is a market clearly proving all the skeptics wrong that the fed was driving this stock market rally. the fact that the market today is cheering on the exit of larry summers means they are looking forward to more stimulus for these markets.
so this is the main focus down here. all the markets are affected across the board. by the way, says, fix is down today, showing fear level of investor has gone down as well. markets across across the board impacted by this. adam: fear may be down until wednesday when we get statement from fomc. what happened with the dollar, getting stronger or weaker? >> we're seeing a big reaction across the board in the dollar today. dollar prices down against all major currencies. the euro, it is down against the yen. it is down against all of its counterparts. you have to ask yourself why. you're talking about, larry summers out with who is seen as more hawkish, janet yellen, seen as more dovish. we're talking about devaluing our currency. adam, that is something that is arguably ran up stock prices and ran up commodity prices. so you get that weak dollar. that is when you get gold rice prices up, silver prices up, that is what is playing out here down here as we speak.
until the big fed meeting and big announcement. how much will they actually rein in. adam: i have a feeling 2:15 on wednesday will be important moment in time. thank you very much, sandra smith on the floor of cme. >> thank you. adam: ready for the twitter ipo? ali bin talal, is saudi billionaire and he will not, not sell any of his shares when twitter goes public. back in 2011 the prince's kingdom holdings invested in $300 million in the social media site. prince alwaleed expect the firm's ipo to hit the market later this year, possibly 2014, telling reuters the speed they are moving with shows that twitter would like to ipo sooner, rather than later. lori: from here on out, i think all of our twitter stories should be 140 characters or less. adam: don't think i could do that. that is for people 30 years and younger. lori: hank greenberg will join us to discuss the financial crisis five years later. how far we've come or not.
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adam: former head of insurance giant, hain greenberg is outspoken critic of several policies from aig, following his departure in 2005. lori: it has been five years since the heart of the financial crisis, what does he have to say about where we come since then and how aig is faring under current ceo. mr. greenberg joins us for an exclusive interview with our very own charlie gasparino. >> what i love about you, hank, you never hold back. i will get comments what went down with aig and eliot spitzer. i don't want to bury the lead.
larry summers took himself out of fed chairman. what do you think about that? >> he made the right decision. i think the market is saying that today as well. >> right. >> he a very smart guy. very bright but he is also, sometimes could be a little stubborn. and -- >> sounds like me. right. >> but, seems to me that, it was the right decision. he may have acted, too prematurely on the qe. he might have pulled back too much, too soon, that is what markets are telling us. qe will taper less, less quickly. >> exactly right. >> the financial crisis, the five-year anniversary, lehman bankruptcy which led to the financial crisis, you think it could happen again. you're one of the risk managers on wall street. it is a shame, what do you think about it now. do we have the right risk managers in place at big banks? >> very hard to say in advance,
do you have the right people and this is what they do day-to-day, in aggregate. what kind of crisis is going to evolve. there were many things that led to the crisis. the government had a hand in it also? >> expansive housing policy? >> not only that, but some investment banks had leverage, 30, 40 times their capital. >> right. >> who was overseeing that? the sec was supposed to. >> right. there are many, many faults, both sides, government, and the private sector. >> let's get to aig. one of the interesting factoids, when you left aig, the risk exploded. you were, you left amid, forced out essentially by eliot spitzer, up farly a lot of people believe including myself. risk did explode when you left. >> yeah. >> the company was in desperate shape in 2008. something needed to happen or else it was going to implode. what they essentially did was, they wiped out all the shareholders.
they gave a huge cash infusion and then they made good on all the financial contracts that aig owed to the likes of goldman sachs and morgan stanley. you take, you been mow shea, the current ceo, thinks that needed to be done. it was like, a hospital, a patient dieing. they needed radical surgery. you say no. explain. >> many things could have been done. when i left aig, they lost their aaa rating, okay? as long as you had a aaa rating you did not have to post collateral. when you lost the aaa rating, you had to post collateral. that was the first thing. that could have been involved many different ways. the fed could have guaranteed aig-fp with many others. if they did that aig would have regained the aaa rating and captured collateral instead of post-collateral. >> they wouldn't have to
transfer money to goldman sachs. >> that's exactly right. paulson then called ceo bob williams, we'll lend you $85 billion, at 14.5% interest. >> right. >> and trying to help a company, why would you charge them 14.5%? >> it was more onerous than any terms of anybody else. >> not only that, then they took 7.5% of the equity in addition to the 14.5% interest. >> they wiped out shareholders like yourself. >> yes. >> you have a lawsuit. did the current management, robert benmosche, did they think about joining lawsuit or perfunctory thing they had to vote on. >> i think it was perfunctory. >> they never really considered it. >> i don't think they did. they said the board did but i don't believe of that. >> have you had any contact with them since? >> we attended a meeting where they voted to join the lawsuit or not but i think the decision was made ahead of time. in addition, i want to go back,
after the lending of the $85 billion at 14.5% -- >> right. >> -- paulson gets on tv the next morning and says we'll liquidate aig. >> right. >> think about that, liquidating the company size of aig, the largest insurance company in history? >> it would be chaos. >> yeah. >> what do you think about his performance during the financial crisis, hank paulson? he was on another show yesterday. i didn't find him terribly compelling there was a three guests, maria bartiromo and barney frank. neither seemed to make much sense. hank paulson suggested one of the problems with the bailout, he didn't explain it well to the public. the public never accepted that. he was one of the worst explainers in the world as you pointed out. >> there is no question about it. it was hard to explain because he coin explain some of the things that he did. there was no explanation that made any sense. i mean why would, why would you, lend $85 billion at 14.5% and
take 79.5% of the equity. in addition to that -- >> cover all the, cover all -- he would say we covered creditors because the goldman sachs was on the verge of bankruptcy and morgan stanley. they went down the tubes as well. >> how do you know what the value of the cdos were? there was no price discovery, charlie. in other words if you want to sell a stock you look on an exchange and see what the price of the stock is. there was no for the cdo snooze on five-year anniversary of the beginning of the financial crisis, what grade would you give hank paulson? >> he wouldn't have passed the course. >> he would have gotten an f. >> from me would have. >> tim geithner, head of the new york fed. >> he would be right in line. >> tim geithner gets an f. >> absolutely. >> ben bernanke fed chairman soon to be leaveing? >> he made comments i find very, very disturbing. >> as to what? >> he is saying aig was the worst thing he has ever seen in ins life. i'm not sure he understood what he was saying?
>> he gets an f too? >> in my book. >> the sos lawn is about to leave. maybe we get ate per crew. before we wrap this up i have to ask you about eliot spitzer. you're suing him for defamation claim against him. he made comments on tv. you know, long time nemesis of yours. we should point out that the charges he brought against you have been mostly thrown out. >> yes. >> vast majority, the ones that are left seem pretty picayune. how did you feel the night that eliot spitzer lost the bid to reenter politics as new york city comptroller? >> i felt very, very good. >> did you? >> i did. >> why is that? >> first of all, you know he, he was, he was a disgraced politician. he did not, i -- >> right. i do not believe that he understood some of the things that he was bringing charges. >> do you think he was a bad guy? >> yeah, i do think he was a bad
guy. >> we have breaking news. guys back to you. thank you, hank. a pleasure. >> good to be with you, charlie. >> thank you, gentlemen. lori: this is a bit of a breaking news. this is another trading glitch. options trading halted after several u.s. exchanges because of data feed pricing options to traders. omx, bats, miami international holdings have told traders via electronic notices all is how they're told of the situation we're learning. this comes after the three-hour shutdown just last month of all trading in nasdaq listed securities due to a problem with the data feed handling those prices. we're all over the story. we'll bring you very latest as soon as we get it. adam: coming up he was an outspoken critic of tarp 5 years ago and he doesn't like it five years later. wells fargo chief joins tracy byrnes and ashley webster next. you don't want to miss that discussion.
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tracy: i'm tracy byrnes. i'm ashley webster. ashley: record highs still within reach. the dow now within 200 points of that record high, 15,065. oh by the way, s&p only 10 points away. tracy: wall street cheering news that the fed future chief will be anyone but larry summers. ubs economist drew matus was one of the first to say that bernanke could actually stay. he breaks down the odds for all candidates in just a few moments. ashley: president obama marking five years since the financial crisis with a new warning about the debt ceiling. we'll have the latest coming up. richard had closed-door meetings with paulson, bernanke, the all. the former chief said the top made the crisis worse.
he is our special guest. we want to talk about the breaking news on the options halt you heard about. nicole petroleum on the floor of the new york stock exchange. what are you hearing? >> still seems to be an issue. another day another glitch. that we know so well exchange executives as well as executives, regulators met last week in washington, d.c. to try to figure out how to discuss ways to make such data feeds more resilient in outages like this. today you do see nasdaq's drop down like that on intraday chart which is really telling exchanges run by nasdaq, bats, miami international holdings. told traders, via troon i can notices that the markets were halted due to problems with options price reporting authority. so, continue to follow that and get this out but this follows obviously the 3-hour shutdown last month of nasdaq listed securities and that was tough news.
that was in the case of equities. in which case the all the equities didn't trade. little different, same idea when you have glitches. nobody likes that and doesn't do well for consumer confidence, particularly on this day, right? as we look back on financial crisis five years later the markets certainly recouped moves of losses. some of the financials have not. dow jones industrials off 136 points, off the earlier highs of the days. s&p 500 sitting at 1700, exactly at levels we haven't seen since august. nasdaq prior to pulling back hit 13-year highs today, but right now leveling off a bit up three points at the moment. back to you. ashley: thank you very much, nicole. last thing nasdaq needed but again all options trade something halted. that is the latest. we'll continue to follow this story for. >> as nicole, pointed out, big day today, president obama says our nation's banking system is safer than five years ago. in a speech marking the anniversary of the lehman brothers collapse, he
also issued a new warning about the debt ceiling. rich edson live at white house with the latest. hey, rich. >> good afternoon, tracy, the president ended up being about an hour late for the speech because he was monitoring events on a short distance from here, shooting a at washington navy yard that continues to develop. president obama taking the stage, looking back at last five years of crisis he opened up by saying many extraordinary and what he said politically difficult and up popular measures he took at beginning of his term are paying off in terms of banking safety, capital standards, the rescue of the auto industry, job growth. economic growth, and all those issues he said, that really helped the economy over past five years a much show where we have been. that is small portion of the president's speech, however. as for the bulk of it he launched into a full-blown attack on congress. >> are some of these folks really so beholden to one extreme wing of their party they're willing to tank the
entire economy? just because they can't get their way on this issue? are they really willing to hurt people just to score political points? i hope not. >> president obama talking about the republican stance when it comes to obamacare. the number of republicans who either want to shut down the government or defund obamacare and that is pretty much a or b for them. also many of them calling to defund the president's health care law in exchange for raising the debt ceiling and by next month, middle of next month, that is when the treasury department says you will have to engage in an increase in the debt ceiling or else the u.s. would go into default. president obama repeating line saying he refuses to negotiate over the debt ceiling. he says it should be increased because these are for bills that congress already racked up. republicans are saying about all this, there have to be structural changes to spending, there have to be spending cuts or reforms before any increase
in the debt ceiling, they haven't identified as a party, what their opening offer, what they want at beginning of any discussion, to raise to the debt ceiling. got reaction from senior republican aid on the president's speech. sadly this is the hallmark of this allegedly post-partisan president. never let a crisis go to waste. back to you. >> there is that. rich edson, thanks very much. ashley: more on the fed. banking committee member elizabeth warren throwing her support on vice-chair janet yellen as the next head of the federal reserve as larry summers takes his name out of the running to replace ben bernanke. peter barnes in d.c. with this developing story. peter. >> hey, ash, that's right. senator warren is the chairman of the committee that will hold the hearings on this position. she is one of the leading democratic progressives who wants janet yellen and opposed larry summers.
among opposition from senate democrats he withdrew yesterday. he said in a letter to the president. i reluke taintly concluded any possible confirmation process for me would be acrimonious and not serve federal reserve, or ultimately the nation's on going economic recovery. in an inner view for us this morning warren specifically declined to say why she did not want summers but she heaped praise on yellen. >> i think janet has terrific experience experience and good judgment. she is a consensus builder and that is very good thing for someone at the fed. >> analysts say yellen is not a shoo-in for the job. the president is considering former vice-chair don kohn and might look at his predecessor at the fed, roger ferguson. there appears, perhaps, however remotely that the president might, could, ask ben bernanke to stay on at the fed for a
little bit longer or maybe for another term, who knows. warren declined to comment whether she would oppose anyone but yellen who warren says has a strong resume' and good judgment as she said in that sound bite. ashley, back to you. ashley: peter barnes, thank you so much. >> you bet. tracy: talk more about this. our first guest was one of the first to suggest chairman bernanke could stay on the fed. ubs deputy chief economist drew matus joins us. drew and i did point that out last week and i promoted you to chief economist at ubs. now i will publicly demote you back to deputy just to clear the air. look, you said it, that ben bernanke should stay to make the transition simple. now that summers is out of the picture, does that really look like more of a possibility to you. >> i think the odds of everything went up, right? yellen we thought would get it at ubs the odds of her getting it have probably gone up. but i think as much as odds for
yellen have gone up, the odd for ferguson or another candidate have actually gone up dramatically. part of it is going to be how the president deals with this. let's be clear. he is not going to get his way with summers because of his own party revolting against him. you know, does he then turn around and say, well, i can't have my person but you can't have your person? tracy: right. >> we just don't know how he will respond to that. i think odds of someone like ferguson will go up. odds of candidate no one had heard of have gone up. my guess his team is putting up a list a little longer than the last list. he will go through it and see who he is most comfortable with. clearly comfort is key factor if he is willing to go through all this to get summers in the first place. tracy: talk about yellen a little bit. the market clearly wants her because she is the most dovish of the bunch, right? is the president picking her just as a woman? i feel like as a woman i could as a woman get away with saying
this. don't pick pick her because he is a girl. picker because she is good for the job s this political because we need a woman in this position? >> unfortunately that is what has come into it but you if you look at most qualified candidates for the fed she would be at the top of the list no matter what. and so i think, she is definitely, should be on the list. she should be a frontrunner on the list but there are a number of other candidates. roger ferguson has interesting credentialals. he is actually a lawyer as well. if you look at growth of federal reserve system, most come on the regulatory side, not monetary side which is operating rather leanly. if you want someone who can understand both the economics, maybe not as strongly as yellen or bernanke but who has much more experience or the potential to understand the regulatory components of it much more in depth, then roger ferguson is a great choice as well but there were a lot of choices but it was very odd to see it narrowed down to summers and yellen before it
got started. in part that is because we shouldn't be hearing any of this until president made a decision. instead became a very public race. that gets back to the politicalization of the fed and steps need to be taken to separate the fed again from the treasury department because they have groin a little too close over the course of the crisis and just as we had to do back in the 1950s, i think we need to split the responsibilities for those organizations very clearly if we want to have the kind of federal reserve we all need and want. tracy: before i let you go, what is the odds-on-favorite, play it out for us? >> i think yellen is the odds-on-favorite. if not yellen i guess it would be roger ferguson. tracy: where does ben bernanke play with this? does he do the one year and say, oh, i've got to write a book? >> the president can't give him one year. the president has to give him another term. depends on how comfortable the president is with whatever agreement and whether bernanke wants to forestall makeing a lot of money in the next year or so if he is willing to wait a year
to do that. tracy: that would be serious philanthropic giveback if he did, right? drew, thank you for come on, sir. >> thank you. ashley: we have breaking news for you. we've been following a options trading halt on the nasdaq. dow jones saying omx, phls will begin options trading 2:10 eastern time which is right about now. the sec is monitoring developments following options trading halt due to what we're told is a systems glitch. so the phlx will resume right now. trading on options market and bx will rye assume 2:15, that is according to thomson reuters. between now and next five minutes they should be back online. we'll continue to follow it. today's stock rally losing steam on news of that halt. the latest from the new york stock exchange next. tracy: plus a former wells fargo chief said tarp incident solve the financial crisis but made it
tracy: it is time to make money. charles payne joins us now with a look at investor confidence overall, right, charles? >> yeah. tracy: we got another blow to it. we got computer glitch this time on options exchange. what does this do? we have a market moving. probably have people with cash on their hands. i'm going in. >> going in. halted trading. your options didn't go through. funny you mentioned that, a lot of people are tippy towing back into the market via the options market. even my own business. i look back at my database, people buy 10,000 shares after $20 stock and now buying 500 shares. people are in the market reluctantly. this deals a huge blow. these are large, elaborate systems. it is whole attitude about all
these things. it is sort of like the big boys are taking care of, they're okay. they have alternative exchanges. we're not going to put anymore money into the system. sort africa lear approach to this, but i really think coupled with all the bad things that have happened, really continue -- ashley: nasdaq had the big glitch. >> right. ashley: they had a meeting with the governments, overseers saying you have to get your act together, guys. here we are gone. >> you probably say there is time for management changes to send a message, we get it. loud and clear. this is huge problem and we want to fix it. investor confidence is such a critical part of all this. tracy: this harkens back to facebook, right? we shouldn't even be talking about this. >> so funny when you said that, when the twitter news came out, almost a foregone conclusion everyone saying no way twitter willies on nasdaq. remember when all the tech names listed on nasdaq. all the big tech names are on
nasdaq. tracy: looked like the tech exchange. ashley: no not now so much. >> there is not a whole lot of news, and this wouldn't hog the headlines but another bruise. tracy: you have to give people enough confidence to get back in with the old peter lynch style, even with these glitches -- ashley: still mon money to be had. >> still money to be made. you and i talk about it all the time. it is hard when you think, i'm not one who will say there is fairness? in other words there are ways big boys get in front of trades. they do get inside information. 90% i believe news is leaked already. there is big deal between trading shenanigans and insider trading and owning good companies which tracy and i talk about. the average person would like the field a little more level not where they field it is stacked against them. ashley: these glitches do not help. >> they hurt tremendously. ashley: appreciate it, charles.
quarter past the hour, time to check the markets, those that are operating properly. nicole petroleum on floor of new york stock exchange. first quarter coal looking at a couple of big winners. >> that's right, indeed. look at options trading and look at couple equity names doing well. we'll start off with boeing shares jumped to an all-time high. dow jones industrials up 4% or $115 and change. look at decision making. looks like they will get more orders coming down the pike. that is good news for them. positive comments from stearn agee. is worth noting that silent eagle is now in demand. separately looking at bristol-myers surging on an upgrade today. jpmorgan raised the stock and looking great. listed a price target of 52 bucks up from 50 at 45 and change. there is upside potential, talking about a pipeline being
great in the pharmaceutical company. back to you. ashley: nicole, thank you very much. we'll be back to you at the bottom of the hour. tracy: he is no fan of tarp five years ago. he is ready now. wells fargo chief will tell us why next. ashley: first look how the u.s. dollar is moving right now as we get a new week underway, dow surging nicely, all these currencies working up against u.s. dollar. one of those days. dow is down, dollar is up. we'll be right back. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar
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>> at 22 minutes past the hour, i'm lauren green with fox news minute. d.c. police are reporting at least 12 fatalities after shooting rampage at the washington navy yard. one gunman is dead and two additional shooters may be at large. one helicopter was seeing airlifting victims from the naval headquarters. police are looking for one gunman. they're looking for one white male and one black male in military-style uniforms. >> u.n. inspectors said monday there is clear and convincing evidence that chemical weapons were used in an attack last month in syria.
hundreds blamed president assad's regime for the deadly attack while the regime blames the rebels were responsible. the team was asked to sigh if weapons were used during the war not who was responsible. now pack to ashley. ashley: lauren green with fox news, thank you so much for the update. five years ago our financial market were in turmoil the aftershocks of collapse of lehman brothers rippled through the economy. some ways feels like yesterday. our next guest was on the front lines of that crisis. joining us now is the former wells fargo chairman and ceo. dick, thank you so much for joining us. i was mentioning to tracy byrnes here with me on the set, in some ways can you believe five years has gone buy? it just feels like yesterday and for you who were hyped those closed doors when all these frantic decisions were being made it must still be fairly fresh in your mind? >> it is indeed. ashley: so, you called the bank bailout program, as we all know,
turned out to be called tarp, you called it an unmitigated disaster. you still feel that way? >> yes, i think it was one of the worst economic decisions in the history of the united states. i think the proponents were well-intentioned. they just made a very bad judgment. and, i'll tell you why i think so. when we were in that room, secretary of treasury paulson said that some of you are here today who need money, who are in trouble. some of you do not. what we're going to do is give you all money because this will increase the confidence level of the banking industry and if that occurs everyone will benefit. as they were going around the room and came to me and said, that they were going to give wells fargo $25 billion, i said to hank, i think this is going to be a disaster. we're the only triple-rated bank in the united states. and the consequence of this is
going to reduce confidence dramatically and you should not do it. and as i was continuing to go on he looked over at chairman bernanke and he says, this is your primary regulator. if you don't take this money, he will declare you capital deficient on monday morning. ashley: so he threatened you basically? >> now what happened -- pardon me? ashley: he threatened you by saying that they're going to announce you're capital deficient, so it was a gun to your head. >> yeah. kind of volunteering the way the mafia does it. give you a proposition you couldn't refuse. but, but, and he also calls it voluntary by the way which is interesting. but the, the aspect here that the spin, is really incredible, because, it is still considered by many, and probably the general population as a great success. and yet, after, tarp was announced, the stock market fell by 40%.
and the banking industry stock evaluations fell by 80%. almost all banks equally. there was no differential between the banks. so how can they still say this was a great success for the industry when the stock valuation went down by0%? it is just, it is incredible to me. but that was just the short term reaction. long term repercussion of this decision are even worse. the facts are that there were about 20 financial institutions that caused this crisis. 10 of them were s and ls. the other 10 were investment banks. the 7,000 mainstream commercial banks, were not involved in this crisis. they did not make subprime mortgages to people who couldn't afford it. they were not tempted to, for short-term profits to cross the line of ethical behavior and yet they are being punished by the media, by the general population
for things they didn't do. even barney frank says that mainstream commercial banks did not cause this crisis. so the administration, congress, vilified, and demonized the entire banking industry, the 20 who were the guilty parties and the 7,000 who were innocent. our reputations were probably permanently tarnished. ashley: right. >> the, too big to fail and more hazard has been institutionalized. we have 40,000 pages upcoming of bank regulations, on again, banks who did no wrong. i don't even think small banks are going to survive all this extra regulation. and finally, the bond market also collapsed as as a result of this and, federal receive had to put in $2 trillion. and, bank investors, particularly small investors,
lost hundreds of billions of dollars as this 80% falling in the stock prices. so it's been a disaster. it continues to this day. you have the 1% and 99% and people believe that wall street was bailed out and main street wasn't and this was really the fault of tarp as they made a very big mistake of putting everyone in the same box. ashley: does the same risk exist today, dick, with regard to the financial system? or, are we just as vulnerable now as we were five years ago? >> well, i just ask you this rhetorical question. what regulatory authority did the federal receive and the occ not have to rein in the risk at citigroup? ashley: yeah. that's a good point. >> i can tell you there was none. so i don't know why everyone believes that they did not have the authority to rein in this risk before and now with dodd-frank they can.
if regulators don't use the authority they have, if they don't understand which banks are risky and which banks are not, of course it is going to be repeated again. ashley: well, we're already out of time, thank you so much, dick. former wells fargo chairman and ceo, retired in 2009, i believe, have you been able to do some fishing and go and do things that you would like to do as opposed to being in the middle of this crisis? >> yes, i have, thank you. ashley: very good. that's what i like to hear. thank you so much for joining us. >> you're welcome. tracy: something good cops out of it. ashley: by the way, he said we should not have let lehman go bankrupt. if you let anyone go bankrupt, bear stearns is much smaller and much less of an impact. tracy: popular thinking. ashley: yep. tracy: coming up with two weeks and counting until obamacare exchanges are opened, more big name insurers are backing out. liz claman will tell us why after this. ashley: let's take a look at
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tracy: we have some breaking news for you, oil closing down $1.62. today's close of 1.5% lower is the second straight day of declines for crude. ashley: just under 90 minutes until the close. nicole petallides at the new york stock exchange where she lives, basically. nicole: i thought it was raining and i heard tracy say it was sunny out.
watching the market action. dow jones industrial up 116 points off the highs of the day but still triple digit gains. you know what else is doing really well? the homebuilders. take a look, it made a big jump, $17.22 per share. part of this is because of what we have been thinking pertaining to mortgage rates this day as we heard larry summers has withdrawn his name no longer in contention to lead the federal reserve. now people are thinking the money printing continues. treasury yield around 2.8%, give or take. much better than 3%. boosting these homebuilders. back to you. ashley: thank you very much. tracy: the market extending their run-up on track for three straight weeks of gains ahead of wednesday's much-anticipated, much awaited fed statement.
a major tapir announcement not necessarily in the cards according to our next guest. he is expecting a little bit later. let's bring in eric, investment chief strategist. thank you for being with us. really, a week ago we were panicking the world was falling apart because of syria. now w we're panicking because te fed chief is up in the air again. we're going to panic up until wednesday. >> that is what i would expect. 85, 75. the theory at the fed is it is better to start earlier than most people think you should so you can go slower rather than starting later and having to go in bigger chunks because the bigger chunks will have maybe an impact on the markets they cannot actually control or understand. tracy: it took so long to feel the effects of the money coming in. before we feel the effect of the money coming out it could be years down the road.
am i changing my trading strategy because of all of this? >> we would say no. we're telling clients on a multi-asset bases we like equities and we saw any disruptions around concerns of the uncertainty of fed policy or the uncertainty of certainty. whenever the market sold off we tell it was an opportunity to buy on the dips. cash rates will remain at zero for a very long time and i would fully expect that part of the message on wednesday to be amplified very loudly. tracy: an hour ago we got word of another computer glitch on the options exchange. and we were just talking about how there is a lot of people with the cash in hand on their way to invest it and they hear something like this happen. does this pull back the money coming into the market a little bit? >> i don't think so. these kind of disruptions in the past month in the market and to be short-term, do not
fundamentally affect investor confidence. i assume it will be resolved relatively quickly but the reality is investors are constantly looking for reasons not to enter the marketplace and that has not been a very good investment strategy since this recovery started. tracy: it is a great point. finding 500 reasons why i don't want to go back on a diet. what is the tapered trade? is it just all in? >> everything in moderation. this is a time to be in your policy allocation if your plan requires you to own 6% equities, he should do so. maybe a marginal overweight to that. i think it is likely what w we'e going to see is the taper will lead to a slight treasury rally. equities eventually extending their performance we have seen and expected it to extend into next year.
tracy: does the bond market continue to be off-limits? stay away? >> most own bonds to offset equity risk. it has done that. we just don't think if it is plus 20% in a year to date basis as risk but that is the positive side, we only think of the negative side of risk. we think they will continue to do their job it tracy: we are not seeing that anytime soon. chief investment strategist, thank you for taking the time, sir. >> you bet. ashley: imagined the health and options exchange on the nasdaq. the new york stock exchange says the president issue appears to have caused the system breakdown. the issue was resolved in 10 minutes. that is the latest we have, so a minor glitch, but a glitch nevertheless.
something they do not need at any time right now. ditching president obama's insurance exchanges in states across the country and now aetna joining the retreat. is this the start of a trend, and what does it mean for the health performers? elizabeth macdonald has more. >> and you strip around th commk away the politics. they're trying to to make money in these exchanges. aetna and cigna and united health so big multi-employer plans to companies not to individuals so they are taking a wait and see to see how they can make money in these public exchanges and trying to see what kind of individuals are going to be in there. there are a lot of unknowns of what the needs will be for these individuals in the state exchanges. connecticut only has three insurers in the state exchange.
there is limited choice, but this is the way it is going to be. a shakeup until they figure out how they can make money, and then they can come into the exchange. what if they don't is a big deal because aetna says they don't like the way the prices are going for these exchanges. aetna can say we will not play, we will not be in there. see how the smaller insurers and they may not have the bigger network of hospitals or doctors to choose from so you are going to have a limited choice in the state exchanges and that is not so great, right? so what happens is the president and the administration would have to take another look at it. ashley: what does the menstruation do? liz: this post be calm edition exchanges to bring the prices down. a lot of these insurers from the
individual sales don't make a lot of money. the big game is walte multi empr plan. again, the market for the mentalist will come bearing do down. not saying they are not going to join because they are joining. ashley: you could end up paying more because less choice and less coverage because the network is not as large. liz: they are saying you know what, it is not worth it. it could backfire, so this week could be the leading and of the trend right now. tracy: stocks off of session highs. we are live with trade greater t next. ashley: a look at the 10- and 30-year treasuries, wipin waitit the games, the yield just off
expected source of close in coming years. vietnam and cambodia came in second in the new study by consulting firm mckinsey. 80% of retailers expected to reduce chinese made garments. google acquired the mobile startup bump app. according to all things d, the deal is worth between 30 and 60 million. it hasn't downloaded 100 million times get industrial production rose in august. industrial output increased by four tenths of a percent last week after being flat in july. the rise was the most in six months. the latest from the fox business network giving you the power to prosper.
ashley: major averages are pulling back from earlier gains but they still have record highs within reach. cheryl casone outside the new york stock exchange with more. a look at how far we have come over the past five years. cheryl: good afternoon. we have come a very long way since september 2008. yes, things happened at the federal reserve and in washington, but here at the new york stock exchange the dow the morning after the collapse the market crashed, we lost 4.5%, that is a bad day for the market. fast-forward. remember you had the days of easy credit and mortgages and all kinds of money flowing everywhere? jonathan has been through all of this, we should say. if you look back on the five year anniversary, you ask yourself if the market could
have done a better job of it wasn't for the low growth policies we had over the last couple of years. >> there have been a lot of stumbling blocks to get to where we are but looking back at what occurred and how it occurred, it would take a long time for us to fix this problem and get a handle on this problem. it's just shows us how hurt the economy was in what was needed to get back to where we are today. cheryl: today's gains will add to that, but up about 100% off of the march 2009 lows. does that surprise you at all, or do you kind of look back and think you know what, 150%, 200% could have been possible. >> if you put yourself in our shoessyou never would have thought we would have gotten here to where we are right now. people should be happy with the results we have here bid infusion of capital has helped spark new jobs and new growth. we will continue to see that but
investors should be very happy with where we are at this point. cheryl: the median income household today 52,000 change. the american consumer, the american resident does not have the same income they had five years ago. do you think the market is getting ahead of itself a little bit? >> in some ways yes. we saw lots of job cuts, income has been down, spending has been down so there is this lesson we all learned over time has changed the way individuals spend money and the way companies spend money and we can see that with income levels. cheryl: yes a lot of things happen including 9/11. that is the thing, h you look bk over what happened five years ago and where we are today. unemployment 6.1% then. 7.3% now. we still do have a long ways to go on several levels but at least today the market are liking what they are seeing.
a nice little rally to report on right now. ashley: that is always good news. thank you, we appreciate that. tracy: five years after the crisis can americans rest assured their money is actually safe? judge andrew napolitano isn't so sure. find out why coming up. ashley: a look at the winners and losers this time on the nasdaq. expedia, stables, all having good days. we will be right back. ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.
there were clearly reasons for the collapse and little has been done to stop it from happening again. fox news senior judicial analyst judge andrew napolitano is here. i know you were opposed to this on the beginning. spiegel i'm opposed to the concept more regulation would solve a problem caused by too much regulation in the first place. it is pretty well understood now that the mortgages they were giving out to people who are absolutely incapable of returning the money and with the mortgages that were being bundled by banks because they knew they could dump them on fannie and freddie, fannie and freddie buying products into the money would never be returned on, all of this was caused by the government, the government making it easy or payments for people to waste other people's money and usually the government's money. so the problem was caused by too much regulation why did we think we could solve it a more regulation? the withdrawal of the nomination
or consideration for nomination of larry summers because the left prevailed and now we will get janet yellin. somebody should consider a real alternative to the authoritarians we have had in the fed a name somebody who thinks the fed should restrain itself and maybe shouldn't even be there. something like the free market. ashley: bottom line from your perspective, it is all about the free market. left the market to what it does it always sort itself out. >> two years ago today crazy and i were in the hallway watching the vote on house of representatives. five years ago, defeated the vote for tarp and we screamed at by the government was coming to its senses. it was repealed and seemed like a great deal of money then,
18 billion totally wasted. since then the government has wasted hundreds of billions of dollars. unemployment is just as high, the unemployment market is just as bad and bureaucrats in washington who couldn't manage a shoeshine stand telling everyone how to deal with credit. tracy: we are like a hamster on a wheel. how do they end this? >> it will only end when there is a prevailing view that free government means free from government intervention. that would mean there is an upsurge in thinking we need more freedom and less relations as a lot of people who agree with him like in the house and in the senate. but without that consensus, this is just going to keep going on and on and on. and there really is no way around it because the government is immune from damages for the
consequences of its misbehavior. can the sho copsey shot a guy ad hit an old lady using a walker, can they be sued? no. therefore there is no incentive for them to behave correctly. the same as the case with the bureaucrats and the fraud protection bureau, whatever they call it enacted by dodd-frank. there is no personal consequence for misbehavior. tracy: judge andrew napolitano for president, ladies and gentlemen. >> don't get carried away. ashley: thank you, judge. we are already out of time. "countdown to the closing bell" coming up next, stay right there. with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card.
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liz: larry summers is out, and the market rally is in. how you can make money off the still unsure yellen trade and whether this week's fed meeting could rain on the profitable parade. a being dollar disaster, hundreds of people still missing and major transport links washed away. we're looking at the cost of colorado's mammoth floods. call of the wild, duck dynasty is ratings gold, and so are the spin-offs from this discovery-owned program. fox catches up with the family and finds out what's in the secret sauce. "countdown to the closing bell" starts right now. ♪ ♪ liz: good afternoon, everybody, i'm liz claman. it is the last hour of trading. i just want to say right off the top that, of course, we are following this disaster, this tragedy developing in washington with 12 people murdered by gunmen. as soon as we get any