tv Mornings With Maria Bartiromo FOX Business August 24, 2015 6:00am-9:01am EDT
the major averages this morning dropped of these 3% as we expect a sharply lower on the heels of a messy picture in china. globally looking to futures showing a decline of more than 350-point if the nasdaq, s&p 500 underwater with the nasa going back to 3% already this morning. it all started in asia. the hardest hit of the asian markets with a live report from beijing coming up. shanghai composite closing down 8.5%. that certainly set the tone for asian markets markets everywhere as well as the rock era. europe stocks up in a short time ago. we guess right off the bat down below 2.5 and three orders%. watching oil prices selling off as well and a negative for equity investors. oil below $40 per barrel.
will it take you to the cme in chicago with the latest in energy. major questions in all of this. how much more selling will there be and what does this mean to the federal reserve. we are breaking down issues this morning on a special edition of mornings with berea. this feature is prepping for another big selloff. anthony scaramucci, what he do now with the markets of the this morning? >> where you want term higher. and then the contrary based on everything. number one the housing cycle on the verge of a recovery. we know that most job 60% of the jobs in small businesses are tied to housing with the recovery happening right now. good for jobs and wages. the second big thing is that banks are well capitalized relative to where they were in 2007.
last week thing people need to know as it relates to interest rates and credit the united states and individual consumer at the lowest level of interest they pay on their credit. mortgages, consumer loans, student loans in the last decade. all of these things do very well for the u.s. economy. this happened in 1998 as we all remember. i don't do gets permit for the united states. nicole: it certainly is a contagion for asia, jobs hilsenrath. why is china so important. >> china is the world's second-largest economy driving assets we watch carefully. why has oil prices fall below $40 a barrel? the thesis a few months ago was because we are fracturing so much in the u.s. and increasing supply. important factors to demand from china is down. what is the news that is
important. this is an external threat in u.s. markets. look at the domestic economy. the data have been getting better. we get a report later this week which are biased as the estimate for growth in the second quarter and a number of things right now. interest rate down, oil prices down. they don't hurt the american consumer. >> this got been meeting for the federal reserve this week among other economic force. a window does size the u.s. economy is isolated from all of this and this is an overreaction to put so much importance into chinese stocks and the economy. dagen: do we need to sign for the federal reserve that they are taking note of the action and maybe won't move as soon as some people are thinking? janet yellen will not be at jackson hole. when you have a fellow flight as
they continues to pick up steam, you have business owners and operators become so rattled it can become an economic slowdown in the united states. it can become a recession as people are afraid and unwilling to make commitments and continue hiring. >> a big issue is how do people like anthony respond to the markets. if the selling bill thomas golf, you can hurt household sentiment. if people commented that this is a buying opportunity. maria: maybe. when is the buying opportunity, anthony? everybody continues to say we are in the middle of this. we have not had a pki. >> okay, in six to 12 months this is a time to way he had because what we know is that reverse very quickly. if john's right about the
economic data and wages better than expect it, earnings are better than expected. we haven't put the federal reserve on the table but if the fed raises rates, that's a the bottom for the current market. if they don't raise rates then it just signifies they don't know anything more than the three of us were four of us know. >> everyone is saying are they going to move in september or a day. what they are thinking about is what groundwork to daylight for the outlook for rates over the next one, two, three years. one of the shifts we could see is a downward shift in their own projections of where we are not in september but the end of 2016 and 2017. the fed's own projections out of line with the market. the market saying you can't do this much is even telling us for the next few years. we could see some downward drift
with the fed aligns itself with the market. maria: this is an important conversation because it's not just about the slowdown in china. it's about the federal reserve in september. if in fact the fed moves rate, do they stop a recovery just gaining traction. >> this is the debate they are having right now. what you see -- maria: larry summers was exactly the argument is the argument to say wait a minute, the data is telling us something different than the expectations. >> larry summers is really interesting. he is getting on janet yellen's shoulder. the two leading contenders for the job a couple years ago. summers is acting like he got it. they want to look at the numbers. an important jobs report coming out next week. we have more data on inflation coming and in how the domestic
is holding up. the conversation right now it's even though the domestic economy looks stronger, the dollar is getting stronger. that is a head wind for the economy. the economy can't afford many headwinds. >> if the shanghai didn't do this, what they have raised rates? with a 5% to 8% higher, do you think they have the data to raise rates in september? >> we've been reporting a close call before all this happened. the snake said a harder call. dagen: is that the federal reserve's job to rescue market. is this a bubble, markets fueled. >> it is the job to respond the markets behave in a way that tells them economic outlook. dagen: there hadn't been the rush to buy which a knife type
about. >> we keep talking about how resilient the u.s. economy is. what if we are wrong? often times market no better. market has a certain message. >> let's say we are wrong and now you are janet yellen. do you sit tight? maria: no, that could be perceived as a big negative. >> i am in the camp and maria coming notice i said on your show and i will admit being wrong but rates would rise until 2016. three weeks ago i course corrected based on the data. there are these markets enough because it's a fluid job. enough to not do it question or >> futures markets are pricing in march 2016. he changed or call a little too
quickly. >> let's go to asia affairs. selling overnight. china erases all the gains for the year as they see an 8.5% in the shanghai composite. tracey changes in beijing where it is 6:10 in the evening monday night. learning the people's bank wants to boost liquidity. good evening to you. >> good morning, maria. asian markets drop 8.5% to mark the biggest single day drop in over eight years. stocks fell across the board with investor confidence following to freezing levels. out of all the stocks listed on the stock exchange, less than 70 did not fall to the 10% losing them in. a shame allowing the company to invest in the asian markets.
hong kong markets plunged as well pick hang seng down 5% also touching a two-year low. japanese sacks of not escape the selloff. 4.5% exporters for her after her traditional valley against the u.s. dollar and other current ease sliding against the greenback. cap koreatown 2.5% to hit the lowest level since 2011 closing down 33%. maria: tracey chang is live in beijing. more expert coverage of the selloff. what it means for the economy and your money. "the wall street journal" this morning, china looking to flood the banking system with liquidity as global markets lose faith in chinese leadership. vice president job i.d. and increasingly bending towards joining the reason why gasoline is lacking behind oils falling
maria: welcome back. happy monday. not a very happy money for global markets. keeping an eye on futures this morning looking like another sharp selloff at the up and this morning as a global row continues for equities across the world. crude oil hitting fresh 6.5 year lows. oil prices break below $40 a barrel that in a slow $38.69 a
barrel. phil flynn effect is seen in chicago with the sentiment. good morning to you, phil. >> good morning. the sentiment is terrible. we have not been here since the depths of the financial crisis. right now the market is reacting not do much to supply the concerns about demand, concerned about china where most of the oil demand has been over the last decade or so been called into question. other issues of course what happens to stop the freefall right now. obviously hearing from chinese banks they are going to flood banks with liquidity. a lot of traders looking to lower the reserve required min. they did not do that it might be a missed opportunity. look across the other commodity complex is well seen the market pricing in a major slowdown. a lot of fear, one of price drops in traditional commodities like gold, silver, copper.
breakout commodity show a lot of fear that is reflective of what we see in the global marketplace right now. when it comes to oil, being below $40 is not a good sign. maria: gap, it is not a good sign. i wonder if it triggers another cup tax scheme within the energy sector. then you see how the ramifications are deep and wide for the u.s. economy. >> you will see that quite a bit. we've heard calls from opec members for an emergency opec meeting. when you see this price drop in the past couple those cutbacks will come swiftly and quickly and that will lot of the big oil companies. maria: will check in again throughout the morning. phil flynn is in chicago. commodities that dow futures point to an open. 22 of the 32 dow stocks down.
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maria: good monday morning. following it tough market across the globe equity selling off again. one will do so in stop and when will it be opportunity. turning us on the phone as rogers holdings chairman jim rogers. thank you for wayne and what is your take on the global route this morning? >> berea, it is long overdue. as you know, we haven't had a 10% correction in the u.s. stock
exchange for four or five years. we still are naming down 10%. maria: we've seen asian markets set the tone. i guess we needed to see a correction because we haven't had one in so long. do you think it is warranted china would really sparked a selloff in china continues to deteriorate. 8.5% selloff last night. >> yeah, i see that. i hardly see how chinese stock market -- [inaudible] i hardly see how this can all be blamed on china. the china current enough presents. most other currencies down a lot more than that. i'm in china at the moment so i'm a little perplexed china is getting to blame for all of this. maria: two what do you attribute this?
aside from the fact we haven't seen the selling in a long time, what else is causing this unrest? >> the central bank floating on a gigantic artificial ocean of liquidity. they have staggering amounts of money with the artificially low interest rates and now we pay the price. we haven't started paying the price that because markets are needed down 10% yet. >> were detained commodity prices seemed to me inside if they keep falling on banks keep interest rates as low as they are, the financial bubble you talk about continues. >> well, yes. it seems to be that way. was that john speak in her intimate. it doesn't matter. as the markets go down 9%, 13%, you take the number.
people call up washington and say you must save us. the people in the central bank are academic bureaucrats. they are going to panic and do something. in the meanwhile the market will hit a bottom and see a sigh of relief in the market will start rallying again. that will be the last rally, maria appeared maria: im with anthony scaramucci here. >> he spoke at our conference in singapore two years ago talking about asia and the speed asia century. he think china will dig itself out of this? >> the difference now in the last time in 2008 is china had no dad. now they've built up guys that china will be effect did more this time around than before. the chinese debt is nothing like the rest of the world, the western world or japanese world. as we all know, china has not
had a recession for a blog time. what would be normal china to have a slowdown recession. that would stop the world and financial markets. as i said e4, we haven't had any problems in the financial markets in the lord time. maria: of the federal reserve doesn't raise rates, said a bigger negative for equities than if they were to raise rates? >> if they raise rates and market go ahead and make 13% or whatever downturn, then they would panic in coming to the rescue. we've got this artificial ocean of liquidity. the sooner the better if you ask me. my loans are down like everybody else. the longer we delay this, the
worse it is in the end. dagen: hey, jim. it is dagen. what if the fed comes in to rescue the downdraft in the stock market and what they decide to do doesn't work, is that a possibility? >> that would be good news because then the markets would finally have some reality. it would be an tired market. it would be fun, but some of us comment 30 would lose money. it would be a good dose of reality with interest rates back to some kind of karma level and have normal levels of the stock market. maria: jim, are you buying anything here? >> no, i am china. the one good uic at the moment is apparently the chinese government is going to stand aside right now is that i pulled it out. that's as far as i'm concerned.
maria: welcome back good monday morning continuing breaking news coverage of the markets on brink this morning i am maria bartiromo it is monday august 24, with me this morning "the wall street journal" commander in chief economic correspondent, fox business network dagen mcdowell, and sky bridge capital founder antonio scaramucci all you need to know major market arjz once again in sell-off mode after brute dal in asia europe in the red for u.s. stock market we are looking at a sharply lower opening down better than 400 points as you can see nasdaq down 156 points this morning, three and three quarters percent global stock
sell-off is accelerating on worries every china xhooi and slowdown there mark is chief investment strategist good to see you a day we ne we are going to fall out of bed begins a two days of sell-off raft whooek what are you telling clients this morning, mark? >> don't panic, this has been a process that has been long and coming, we have known for quite sometime that the market was ripe for pullback some order in fact what we're starting to see, of course, i think some deregulating in equity prices to rest some things we have been watching sometime doesn't just include slowdown in china in blowback, a emerging market countries as well as the fact market interjz have been moteling for almost a year, and so we expected reconciliation would have to rest what is going on in breeder market ultimately we think think the too shall pass even if loser levels than day and will resume advance.
>> how sizeable a correction would as you step we are initially in a correction do you think there is another 10% do you think little more when would you expect that we see opportunities in terms of buying on that dip that you are referring to -- >> maria, we are trying to handicap obviously the catalysts that tr helping to drop equity prices to point we can make determination of that at the end of the day, i would expect 3 to 7% another, i know about a full 10% more but i still think that we have further to go. but along the way we probably would be advocating legging into this marketing some point because we're not ultimately going to be able to time bottom pefl at the same time we say caution condo is warranted given if fact it looks like this is sort of feeding on itself at the moment servers seem want to go sell first oobd ask questions later. >> long term interest rates are coming down dollar is getting stronger as an investor how do you play those
two trends how do you take advantage of the drop in long term interest rates and possibility that the dollar is going to keep strengthening where does money go as a result of that? >> well, i think money goes, to the u.s., if the dollar is going to continue to strength, obviously, we had been for sometime gots of international equities since valuations in europe and japan cheap on hedge basis we promote visa international equity investments on hedge basis to offset dollar strength as relates to the lower of interest rates, obviously, costs of capital cheap as a consequence you are going to see haten does mand a activity at the end of the day what it means for bond investors that they are going to continue to get squeezed out of income investments assource of cash flow and, therefore, i think we will have to look to dividend paying stocks strategy dividend spaying
stocks out of favor now 12 to 18 months. >> anthony -- >> where do you see the economy in the middle of 2016 if you can look out that far? >> stronger? >> anthony, on balance probably not neltz much stronger but certainly not weaker, we've had this sort of no boom off in bust philosophy as relates to the u.s. economy whereby we continue to see enough neshl in the economy through the kind of job growth we've had, consumer confidence the gas tax cuts all things connect collectively helping to spur positive economic activity, all subtrend, i don't think that is necessarily in gets derailed unless obviously circumstances overseas continue to did he ter eighth to point no longer did he coupled from basis we expect economic growth. >> how o o would you rate the individual panic that you may be heard after the market closed on friday over over the
weekend, in terms of of the types of calls, that you were getting? >> yeah, dagen, important, because the chirping getting louder interesting closer to turning points where you start to from contrarian standpoint, tune your area to what you might hear relative to the pain they are beginning to feel as a convention of decline in the equity market clearly the noise has o gotten a little bit louder, not quite to the point that panic not quite to the point where we are actually seeing clients repaper statements to say get me out of stocks but at the same time getting more anxiety a little bit of a kind of a punch in stomach relative to what we hear from investors in terms of of how far is this going to go, and should i be 70s contemplating whether or not to do anything, relative to my equity position at this juncture, obviously our advice is stay the course, for the time being, but at the same time, we are looking for signs around the corner as much as anybody, as to whether this could get significantly worse or not which is not our best
case. >> good to have you on the program appreciate your insights, thank you. >> thanks. >> see you soon mark joining us from. >> three aernz honored as heroes, the headlines of the morning good morning to you. >> good morning, the americans airman first class stone about national guardsman skarlatos, silver friend took down heaviliard man on passenger train bound for paris friday they dismayed something had to be done because quote hiding or sitting back, is not going to accomplish anything, french president françois holland will aaward the legion of honor well deserved. >> v.p. joe biden reportedly leaning toward another run for the white house, the "the wall street journal" says, deciding factor is whether he can put together, a competitive campaign, at this stage of the race vice president surprised visit senator elizabeth warren i raised fresh questions about
a run. >> weakening to a tropical storm status approaching the o northern caribbean island, and the rain could be a welcome sight for the drought-stricken region a special deliver at washington national zoo, over the weekend, take a look how cute this is, a set of twin panda cubs born on saturdays, just a few hours apart the zoo chief veterinarian says that they appear strong, but noted it is still a very critical time for the cubs, in fact belong to china still, maria. >> thank you. aww. >> how about this. >> -- you feel like the world is going to h--- >> a little less. >> showing big pandas, thank you. >> extension sell-off unfortunately reality for these markets today, is not good, the biggest drop since 2007 erasing all gains for the year live to beijing next for
maria: tougher morning for global markets tumbling in asia, china erasing gains, down 8 1/2% the biggest one day drop since tomorrow 2007, chinese state television reporter in beijing, what is triggering this amaze sell-off again good morning. >> i is pre crazy we can't put fingers on one thing but asian markets are in the -- like you said shanghai composite biggest over investors confident, to freezing levels out of all stocks, thousands listed on shanghai ty stock exchange less than 07 do not -- 10% daily losing limits after beijing came out with news allowing the funds to go go asian markets, that news just falsehood to cheer
investors, as well, hong kong markets plunged as well hang seng down more than 5% touching a two year low, and tokyo japanese stocks, sold off sharply as well nikkei down more than 4 1/2% exporters balanced hit a safe haven currency rallied against u.s. dollar emerging markets supplyinged against greenback, south korea kospi down, several blue-chip stocks down more than 3%. maria: some numbers, nikkei average, down sharply as well as hong kong, following shanghai more with marc faber joins us right now live on the telephone, marc last week you told us that this all up rest across the world was going to spill into united states that is happening, two ways one hand is u.s., spills into u.s.
we've got a sizable decline to come on the other hand where do you put your money if you are seeing unrest all around the world, would it make sense you have thes given the stability here relative to the rest of the world is one place that you buy at some point this week? on the phone: well i have to tell you about markets, they have become very oversold. median term, long term if you look at the -- 20 year s&p recent decline hardly sold up but it can get much worse, let me remind your viewers, that the day before the market crashed, in october, 1987, the market was already oversold. and then the dow dropped 21% in one day. so usual thinnusual things can
when goal is to reduce risk through central banking monetary policies -- the price come back one day, and this is what may happen now. i believe the markets oversold. what you should do with the money is where as most investors were buying the dip, i would consider on any rebound, reducing position, because the slowdown in china began more than two years ago. and it began to accelerate on the downside last year, while the stock market was -- we have hit in chinese economy kind of a brick wall, and this will have a big impact on the world. on multinationals in case
general motors. >> are you saying to buy on the dip? >> no, i am not saying to buy on the dip, i am saying seasonal rebound. >> okay, sell into strength. >> yes, and concerning what do you with your money should yyoud keep cash as i said before treasury bonds in u.s. are okay. i continue particularly like u.s. dollar. >> marc, i remember sitting in your office in 1998 talking about all the storms brewing in asia -- the rest of the world i want to ask you does what you are seeing now in china, and asia more broadly remind you at all how things played out in the late 90s, and how does that affect your investment strategy what we owneded up then was a technology bubble.
>> basically, 98 we had already asian crisis stocks innaire became about about incrediblebly cheap stocks declined not terribly expensive any more the weakness of the you currencies but not barring levels like they were in 98, 99, what a dinners this time is that airn economies by and large -- few exceptions that wasn't the case at that time, on the other hand, as you know, 1999-2000 u.s. government said 5 trillion dollars now 189 trillion dollars, that is percent of gdp everywhere. has been going through the roof, in china since 2009, the percent of gdp, up 80%.
so we life in a very leveraged world zero interest rates since 2009, in 1999-199, 2000 green span could reduce fed funds rate from 6 1/2% to one percent in 2003 but that is no longer possible. >> marc where would rated be out the federal reserve as you presentation of rates if in other marshall where do you think overnight rates would be right now? >> well -- the rule would suggest that effect rates are on 1 1/2, 2%. >> do you think this changes the fed course next month? on the phone: i believe, if that the weakness that is now obvious even to professors -- never been the china never
traveled don't know anything about economics, that acquiesce in will induce them not to increase interest rates. >> you are not expecting a move next month john you said the markets are now pricing in you march 16. >> markets are -- that is what the fed is decided reduces the odds. >> 28% for september the futures marketing. >>. >> thank you. >> we should get together one of these days, a "the wall street journal." >> when you are next in new york please call us punish marc. >> looks like, you got a date there. >> i am hoping for one. >> -- can i point out something about john? he wrote the article last week about the lack of ammo at federal reserve. how prescient was that that will be i think in coming days
that is going to be the question not that they laced but in this gets worse then what do they do. >> i told dagen i got lucky with that story written a month or two ago sitting there -- >> no time i got lucky. >> not about what fed raises, but -- >> the fed if we go back into recession, what do they do, you know, they don't have a lot of tools left so they have already expanded balance sheet to 4 1/2 trillion dollars long term interest rates very low. qe programs easternmost getting you very far we talked about negative interest rates, if we go back into recession, they are trying in europe, but boy, talk be uncertainty about about central banks going too far. >> you have to way swis national bank 57 basis points you pay them --. >> pay your bank to take your money. >> propriety. >> i don't think it will happen but your article does a great job for the fed by
conditioning people to what to expect, and that is another reason why even though, people are saying it is not going to happen, there is a likelihood rates will go 25 basis points in september. >> you think so? >> because of that john said in that article they need ma'amo the economy is a lot stronger the data suggests that there should be a rate hike irreside effective of china. >> you don't raise to cut later raising rates is going to but the economy -- >> you raise rates if you think the economy is stronger that is the debate they are having. >> i don't know how to read that evidence things coming in weaker -- >> the economy is going all right, that is the problem they've go to global headwinds. >> big thing for fed. >> dow futures pointing to a steep sell-off, how this changed the monetary policy what is up for september versus december on interest rate increase expecting 400 plus point sell-off yi dow jone
. . maria: welcome back expecting a sharply lower opening for broader averages the damage down better than 400 points red all over the place what is the modify important from your standpoint to, watch. >> the dollar i am going to be watching the dollar carefully this week it is getting he stronger at the fed there is a theory that currency depdz to overshoot if this you currency gets stronger makes it harder
for fed to raise interest rates. >> one of the issues for corporate earnings dagen second kwaerth growth i flow better than expected expected down 4 1/2% but s&p 500 growth corporate earnings up .04%. that is no growth. >> we talk about the correction, in the dow, not yet a 10% decline in s&p and nasdaq but you are looking at stocks there are there is a major bear market host of giant u.s. corporation down more than 20% apple, exxon conoco gm procter & gamble, that really speaks, to the weak necessities poeshl weakness in businesses that people are basically selling them wholesale. >> we may open down 400 i don't think we close there from 12 to 30 immediately, huge gap down usually means supply, that has been taken out of the market that means the demand the suck it back up. >> you think off the lowe's. >> i think will close off lows. >> to dagen's point about
multinationals, i've been reading reports if you look at ford, trying to figure out to where american companies stand, they've got problems. >> the latest on global markets sell-off live on fox business network we will talk with headed head of china equities next. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.
maria: good monday morning breaking news markets, on the brink, i am maria bartiromo, the major afternoons selling off again this morning, we are now in correction territory, meaning the dow jones industrial average is down 10% from recently high, hit in may, good morning it is monday august 24 with me "the wall street journal" chief economic correspondent john, fox business network dagen mcdowell, sky bridge capital founder wall street we can hottest anthony scaramucci, and charlie gasparino
investors looking for what to do after 530 point sell-off on dow jones industrial average on friday continuing this morning take a look at damage major averages dropping at least 3% on the day going to be another rough do a at the -- ofs, it is expected that we will see a 400 plus point sell-off, this morning, in the dow jones industrial average in asia stocks sold off there setting the tone china hit hardest but was throughout china japan, and throughout europe as well, take a look at shanghai composite down 8 havd percent overnight, watching oil prices breaking down below 40 dollars a barrel this morning that is the lowest lovely more than 6 1/2 years oil now at 39 dollars as you can see there, the latest, from if cme group thrive chicago major questions when will bleeding stop what does it mean for federal reserve meeting next month when is it time to find opportunities, we are breaking down the issues this morning, as stocks in
europe fell off massive sell-off in asia china he rayses gains for the year seani shanghai composite down 8 havd percent biggest one day slump since 2007. >> helen zhu, thanks very much for joining us, first off, do you believe the slowdown in china is warranting this kind of reaction from investors, and if the he sell-off that we're seeing? on the phone: morning i wish we could chat under happier circumstances, i do think that slowdown in china has been anticipated for sometime, but whether it is warranted or not i think depends when market talking about if talking about a-share market even thoughdown year-to-date up quite slant over one-year period valuation perspective pulled back not out supercheap level yet particularly in the board sande board stocks up 55% year to date very expensive, in hong kong listed, chinese
shares how do i think value has very much merging trading 1.2 times, to book basically back to the level, people peripheraling in a dire situation already the current level. maria: i know that you are invested largely, in china, do you think its warned the rest of the world soefells off? >> well i think, different parts of the world in different situation, clearly, i think for parts of emerging market people are quite worded about china picture as well as any kind of risk, of further you currency weakness in a meeshthsdz markets in he swepd markets some exposure, but we are looking at markets that have gone up a lot more over the last couple years versus the local equities here, so, i think oekt resisting premium increases uncertainty we're starting to see profit taking perhaps. >> helen. >> i want to ask you about the
economics backdrop the government wants % growth at the same time,the data we are seeing in particular, last week, set off the sell-off suggests manufacturing sector is conattracting how does an economy built for manufacturing where manufacturing sector is conattracting get anything near 7% growth? >> that is a very good question, and i think indeed that is what we'll are worded about despite the headlined -- sticking to 7% i think china is very proud of the fact that consumption side has been growing at high single digital half of the economy at the moment, so -- gone to close to breakeven, but that said as you mentioned, about if the other half of economy is actually, stable, or maybe even potentially declining in some portions, then it is probably harder to get to anywhere close to that chief total growth rate, i think what are china is trying to do now is pull at the levers at disposal unfortunately going to be very difficult to stimulate examine culmination
to move significant way in near term so what you have to do is pull at the lever in terms of infrastructure, fixed asset investment the government spending very important, also potentially in terms of of the property market where policies last few years have been quite tight. >> charlie gasparino here, i know markets are interrelated but why are we seeing this what i think is an insane overaction u.s. equities, yes chinese big trading partner, but we're down this could be the third day, of 300 point declines, is there so something else going on besides china, and -- you know, a possible 25 basis point increase in the fed funds rate sounds like given those two factors seems like a wild overreaction. . on the phone: i think, you know you ignition are probably experts on u.s. oekt market but my guess would be since u.s. equities has massively outperformed most asset classes last 3 to 5 years as
you see the valuations for meeshldz markets in china other asset classes, really collapse over last couple months, maybe a little bit of kind of taking risk off the table he overall that is leading to bait of correction in the u.s. side. maria: are you expecting more into evenings from the chinese government? intervention. >> i think it depends what kind intervention you are talking about after probing in asian markets early july i am hoping they are not going to take major action specific out to the a-share oekt markets do i hope there will be a much bigger more about broad policy response in terms of stabilizing confidence stimulateing critical side of the economy as well restoring confidence policy makers commitment to pushing through the central reforms really what got valuation expansion in the market we have seen second quarter this year, but i think those two things are actually much more important, than any kind of direct intervention, into the onshore
domestic equity market. >> a bit about chinese consumer, what the market down 0%, from its high -- 60% from high that is going to impact consumer in china. >> a great question. >> i think that is something is that people have been quite worded about for a while, but actual impact i think is probably not nearly as big as people would think. if you actually look at what most sensitive in terms of discretionary luxury goods demand there has been examine demolished in 2013 by anticorrection campaign if you look at exposure to oekts less than 10%, of household wealth most of it, is actually probably in the did he positivesists cash as well as property, so 9% or 10%, at most in equities, probably does not make for a significant amount of negative wealth effect particularly given most of the people who enter on leverage later in the game were actually playing in the market, sme narcotic as i mentioned earlier is up
substantially year to date be despite correction up 55%, i think the overall impact in terms of consumption is probability not nearly as bad as it might be in other economies where household wealth drrgs equities is greater. >> you say a lot of the rest is in real estate consumers could not feel accountable about real estate holdings in china. >> well, i think prices have not actually gone down if you think about fact many people real estate property halthsdz granted dhoufrg reform, even if it is coming down a little bit recently, there is still up substantially not seeing a huge you know, wiping out of real household value there. maria: good to have you on the show thanks so much. on the phone: thanks. maria: see you soon helen zhu, take away you think this is an overreaction. >> yeah and i think, what is going on here, is that two bubbles are bursting the chinese stock market the chinese economy was a bubble, we don't know about they don't have an accounting system in
china. >> the commodity double. >> commodities and u.s. stock market why i think, going to raise rates -- >> sell-off on main street as well live to i colleague at "fox & friends" on fox nice channel, steve doucy, and bryan kilmeade is there, let's listen to them right now they are live. >> right now let's bring in maria bartiromo host of "mornings with maria". live right now on fox business, and fox news channel, maria, on friday a wild ride in the united states, it has been a wild ride overnight in asia now looks like wall street is heading straight into the dumper gave in. >> a sharp sell-off the opening of trading, we are having a debate this morning, on weather or not, even though we are going to see sharp decline at the open if that is actually going to be the case at the close it starting really because of worries over china, chinese economy longest time the jewel of the world where growth in the world was
now we see the reality of it is that weaving from an economy that was growing 11% at the peak, all the way down to 6 or 5%, the numbers are debatable but that is the crux of the problem there is intervention by chinese government, communist crunch not to mention a federal reserve meeting next month debate whether this economy in u.s. is strong enough to warrant higher interest rates. >> jon from "the wall street journal" here you are not sure if the fed is able to raise rates. >> in part because of what is going on overseas,and the interesting thing is that the u.s. economy, is actually doing a bit better i mean kind of tortoise in global race for growth yanking out slow steady 2% growth is not exciting for anybody but compared to china, where it is slowing so sharply we are leading the race. >> deductible the debate whether or not this economy is in fact that strong, the
employment numbers pro bonoed a gdp report guys out this week, out on wednesday, and we will see, or thursday that we will see if that shows -- >> the question let's say china doesn't come back say corruption and a communism combine to bring them down what can we do less dependent long run short run into key of a chip to play. >> at this point u.s. has been the strength of the world where you see growth in terms of stability certainly so i think that the uas it has to continue to see you know, sea strengthening economy we will see if federal reserve raising rates takes is a -- crimp out of that puts recovery in jeopardy. >> we have a chip bryan called skwlt policy cutting taxes. >> would be good what you don't have is a president willing to -- inaction because of the divided government, and you know if you get one party running, you get the republicans running going to get tax reform rollback of regulations, you look at larry
summers op-ed i think interesting read between lines. >> financial times read between plienz he is the architect of some nonsense going on talks about too much regulation, regulation holding back the economy. >> financial system, and i tell you that is the problem. >> -- the catalyst could be election, sort of anticipation that we're getting new leadership on fiscal policy. >> other chip that is in play here which is more, maybe the chp that china is playing a weaker currency for them sand stronger currency for us they might come out of this turmoil try to sell even more of cheap stuff to the united states. >> said to us last week trump came on show said if china continues devaluing currency when i am inoffal office i am huting heavy tar i was on chinese goods so their products are not going to -- american goods. >> actually, maria -- donald trump on this program 20 minutes we will ask about that, thank you very much. >> thank you.
>> fun. >> -- fair share that is what he would say. >> great to talk to you thanks very much. >> have a great day you too eye on gratuities take a look where we stand as we expect sharply lower opening dow industrial down 400 points in premarketing down 150 we are going to see a tough opening, crude oil hitting fresh 6 1/2 year lows prices breaking below 45 dollars a barrel this morning moving as low as 3869. live in chicago cme group good morning to you phil. >> good morning, maria one thing you don't normally see dollar tanking in oil tanking at the same time. and that is what you are seeing in that is very disturbing to see. the reason why that is, is because this is not about you know, oversupply right now it is about concerns about global demand that fear is being applied out, throughout the commodity complex we're seeing that same type of risk aversion you look at gold market usually gold canaveral
in times of crisis, not so today. they are concerned about deflation that is moving it away from the gold, and into the safe heaven of the treasurys right now even if you look cross commodity copper, those markets are crashing right now because of the concerns of china demand is going to dry up that may be overstating the case a little bit but that is where the market is moving, and even if you look into the grain complex they are getting hit as well. you know not just weather story it is a global demand story all commodities back to you. maria: absolutely that is why we're seeing a sharp weakness anywheron, ore, copper industrial metals right phil so these things are used no -- >> build a hours make a car, and so is it clearer indication of weak demand. >> absolutely, you are seeing that, of course, china, of course, the main driver of the demand for most commodities, they were building cities will billed five chicagos every
three years, now if that slows down they don't have capital to do that, capital trying to save their banks, that is going to dramatically impact, that demand for commodities, that is where the fear is being played right now. >> thank you for connecting the dots on that flil, jon, connect dots further for us that is the reason you are seeing the iron, ore, copper where it is a direct indication, of the demand coming out of the largest buyer china. >> right. and what we see is weak global demon one thing i think, we all have to remember as it relates to the chinese economy, in u.s. economy, we don't have a lot of direct exposure to china we have exposure through 70s commodity prices, but only 7% of our exports go to china, and we only have 14% of our over all economic growth driven by exports. >> what about imports. >> huge importer to united states we import their deflation could you take out.
>> -- china takes away 2% -- >> that is -- i think the things overblown. >> overblown, i am not saying is that we are in good shape, because we're not, i mean, that doesn't maintain can't be corrected we've had absence of coherent i guess best way to put it fiscal policy 8 years right into a great right after great recession, president obama wanted to raise taxes, increase regulations, i think that is the that is what has to change here, fiscal policy changes this economy will get back in shape, by the way, they have to raise rates. >> i don't think they can -- >> that was bernard mcguirk frustration remember conference no help from congress, or president. the current administration, not doing anything. and so they got to raise rates a credibility issue. >> you are absolutely right. >> we're not getting a change in fiscal policy at least until 2017 going into election no way -- >> markets will eep, that there is a change coming, and -- >> a bubble. >> that is done enough, now time to raise rates a little
bit i actually think market will rally into a rate -- >> i want to put out 10 year below 2% once again markets are telling you, that they are nervous what do you think about if 10 year below 2% once again. >> another signal to the fed fed wants 2% inflation the market is saying you are not going to get 2% inflation for next 10 years, unless negative rates right now then actually, that 2% is actually reflected. >> coming up in the program going to -- be on the show load bloody day on wall street dow industrial in correction territory from high, chairman wilbur ross vechg all he over the world telling us his next move. back in a minute.
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. maria: welcome back a global rout this morning, we are looking at global market sell-off dow jones industrial average in correction tether down 10% from the high, futures indicating a sell-off at openly of more than 400 points, as you can see there, right now on phone to weigh in on all this w. l. are you going to company chairman wilbur roth thank you for weighing in on day we see this kind of damage what do you do as a long term investor as you are? >> well, i think we will be -- on day like day is look for the fundamental value that get really smacked -- as all markets whether on this morning, but that is what we will be doing. >> where is the value right now from your standpoint wilbur. >> i think that some names have been, far too hard tech stocks, gotten very badly
smashed. and i think people are perha exaggerating the problems of china. china is not falling apart it is true had been contributing about half recent global growth, so slow down a bit but not the end of the earth, since people are panicking, overraking, especially neither conte context, volume a lot of people on holiday right now. maria: right. >> selling -- exaggerates. >> here is dagen mcdowell. >> you did see seems like fear took ahold in a shocking way, in the last week or two. why is that is it because people have been burned not just from financial crises but go back to technology bubble. >> i think it has become all those things the markets especially chinese market, have had a tremendous run and
tremendous run with -- in the june corridor many times as many brokerage accounts eepd in china has has been true in the whole prior year so you had a lot of unsophisticated people coming in accounts opened by people without high school degrees so just -- panicking in, thinking that the government make sure the market always went up but found out that markets go in two directions. >> right wilbur charlie gasparino here i guess you are at odds with me, you might want to buy apple at these levels, any u.s. stock is -- over fees are of china it is apple. >> 21%, charlie, the 1% from high i believe. >> is that a good bet right now a lot of viewers are thinking that.
on the phone: i don't want to get into individual stocks reasonabli recommendation, apple is -- >> not everybody is wildly excited about new watch, it will be designed -- people did like, so wouldn't get too frightened because of one product is not as exciting as -- >> what is your sense of the commodities complex, here, i mean obviously that is also where the heavy selling has been, you have been a long time investor, things like coal, energy related businesses, is now a opportunity within energy or do you think we are still in the middle. >> i think we will get to the point where energy at least oil probably makes some sense. as you probably know, we sold our coal interests some several years ago, because it
was quite clear the obama administration is determined to put the coal people out of business. >> you were smart to get ahead of that one. >> wilbur a lot of people out there this morning, asking themselves is this at a repeat of 2008. is this time to get out while i still can? >> talk to us about how this moment for you compares to what happened in 2008. what are the parallels how is it different? on the phone: i think it is vastly different. in 2008, you had the this whole prime thing collapsing you had a real meltdown in the financial system. the fact that stocks going down a bit, does not constitute a meltdown of the whole financial system, so the totally different thing, this is simply a change in psychological the 2008 meltdown is a change in reality. you had banks failing, you had
the government having to step in, you had a huge financial crisis. not just a stock market phenomena, i don't think this is comparable. >> would you be a buyer here when do you think, what is going to be the catalyst for you to say okay i am ready to start finding opportunities here wilbur? on the phone: i am getting serious lots of things now, as i think you are aware, from our over the last year or so he we've been a seller of five times as much as we have been a buyer. not so much because we thought the end of the world was coming, but we just felt things are starting to get a bit high. >> you think the fed is going to raise rates, right. >> pardon. >> you think the fed is going to raise rates in september. >> i doubt it will -- in view of what is going on rights now i don't think that they want
to be add to the confusion so i think it is more likely they will wait for things to came down a bit. maria: we thank you so much for joining us we so appreciate it. on the phone: thank you maria good to talk to you -- >> see you soon wilbur, more coverage of the expected moteldown coming up stay with us. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
visit angieslist.com today. maria: welcome back. continuing to cover breaking news. coverage of the markets on the brink. monday, august 20 or 37:38 on the east coast. correspondent john hilsenrath. dagen mcdowell and wall street host anthony scaramucci and fox business senior correspondent charlie gasparino. what to get on selloff mode after a shed. here's it looks like for the u.s. public and 9400 plus points
off at the opening of trading this morning. a lot of economic data this week will certainly set the tone for markets later in the week like the gdp, consumer confidence tomorrow. wells fargo investment institute strategist paul christopher. good to have you on the program. what are your takeaways about today's current environment? >> well, if you're a long-term investor, someone looking ahead, you have to look back and say as the economy still solid. the answer we think is still yes. traded to you want to look for opportunities to get into the market at the south of beards in the market hasn't finished all enough but frankly speaking his not unusual for market to have parents for their 5% to 10% down. we haven't had one in a while. maria: we have one now. down 10% from the high.
how much more blood is out there? how sizable a decline which you expect? >> that's difficult to say. when it does consolidate, long-term investors have a good buying opportunity. i don't think it's months. and maybe a few weeks. >> dagen mcdowell. if i'm an individual and i call you on the phone, i want to do some reading. don't tell me to do nothing with my money. what portfolio changes could i make, should i make right now? give me some sense of calm and peace in a market that you see futures picking up steam. >> right, you make a good point. there's no reason to put all the chips back into the market now. but there's a reason why investors couldn't take profits in boston began moving them slowly into stocks. we like large-cap stocks.
maria: even though the dollar has been so strong. >> yes, the dollar is going to take a pause, continuous pause as we think the fed will most likely wait until december to make its first move. >> when you look at the economy in 22016, do you see it getting better than the two to 2.5% gdp growth? >> the economy will be about 2% growth, much closer to three. even if the price reading for the second quarter when it comes out this coming friday. >> why? the markets are telling us the economy is not very good or is slowing down. you really think we had a great second quarter? >> i don't think wait a great second quarter. with a better second quarter than last month in the month before and things are getting
better for the third quarter, especially on the consumer side with a pickup in business spending. >> first you don't think they'll raise rates in september. at the same time, talking about the second quarter that wasn't so bad. when i look at the corporate earnings story i think it stinks. we were expecting to see corporate earnings down 4.5%. they came in showing growth of .04%. better than it. there's no no growth in corporate earnings. >> no change in the second half of this year. looking in the 2016, we think that will get better going forward. surprises on the upside to come. >> the counter argument to the bullish case is we have a global economy built on debt, that the chinese far too much money to build those big megacities and even the united states, even
though consumers have delivered and corporate balance sheets are in good shape, government debt as high as we haven't seen since world war ii. the worry is theorized in crisis moments in the markets because investors are finding reckoning with the debt going to be holding back. what do you say to people worried about the debt problem? >> that's a question make it quite frequently. it's not the level of debt although that will be ahead when. it's more whether you can pay it off in the chunks you have to pay off on obligations come due. budget deficit by low, interest rates low, companies have a lot of cash. tax revenues will be adequate to pay off the debt as it comes due. if they had written but not a crisis. paul, i share your view. the data looks like it's getting stronger. wire the market disconnected from the gdp data and what looks
like a positive economic future for the u.s.? >> that's a good question. probably a question of sentiment. maybe not even one single thing, but a week or two to the devaluation. that made people wonder whether this was some canary in the coal mine about whether growth would be sustainable. dallas and misread on the global economy. china had other reasons to devalue its currency to you could've thought it as a trigger for profit-taking and the broader follow-on selling. >> you talk about big cap stocks. it seems to me they are exposing anyone to china. the american economy doesn't export a lot, but a lot of big companies, gm, the hotels, all the manufacturers have invested a lot in the accord me and they stand to lose it to slow down. if you look at earnings reports,
expecting fast growth out of china and flatlining mayor. >> china's retail sales growth still runs 10% to 11% year-over-year growth. foreign direct investment in china still increasing as it did last month. it is not really a slowdown story as he was seated in europe or japan. china slowdown is going from 10% to 8% for a percent to 7%. maria: paul, what is your favorite international market? >> we like the prospects for growth. not strong growth, but from where we are right now in terms of earnings expectations, more big surprises on the earnings side than we do here. good to have you on the program. >> cannot quote george bernard. if you let all the economists end to end, they would not reach the conclusion.
>> he's trying to say with a british accent. it's not working. >> this is like if you are the average investor at home. your head has got to be spinning. no consensus about interest rates and neck she were in the economy. i would say one thing. you don't sell everything right now. dagen: it's too late to sell. >> that's the bottom line. >> is a very nice guy but clearly -- they are all reading this talking points. the >> i love you to death. let me tell you something. site about the economy. look at the data, charlie. the data is way stronger than people suggest. maria may be right about corporate earnings. wages are up.
>> it is like it dead cat bounce. >> let me just say one last thing before break. housing recovery. we have a housing recovery. 60% of small businesses are tied to housing. you will see job growth there. the fed has to be looking at that. maria: everybody is pushing this out to december. i know you were not expecting a big move anyways and some of our guests as well. we still love our same dunkin september. >> it was not a slam dunk. it was 50/50 before this happened last week. we are talking too much about september. the important thing that comes out is the fed expectations for where rates are going to be at the end of 2017 come down. it's more in line with what the market what the market is saying which is the fed has been saying biblical gradually.
>> the basis points on the overnight by election day. dagen: everybody just got a tax cut. long-term interest rates going down. >> is looking for three rate hikes by the election. [inaudible] >> that is perfectly reasonable. dagen: don't worry about the feds. worry about what your tank cause when you fill up the next time. >> we talk about inequality and the wealth gap. old mickey mouse wealthy investors get it in the stock market that the average guy is getting again at the gas pump. conversely, we are in a situation helping the little guy. >> i would like to hear what trump has to say about this. maria: he will be on fox and
world. features indicating a heavy selloff. we are going to open down better than 500 points. we are at the lows of the morning with the features indicating a three and a 3% selloff. the nasdaq to open 200 points almost 5%. we are already in a correction for that doubt down 10% from its high. most recently reached in may. three americans honored as heroes and friends today. nicole petallides at that story. reporter: good morning, maria. airman first class spencer stone, alex carlotta and civilian friend anthony sadler took down a heavily armed men on a passenger train bound for paris on friday. something had to be done because hiding or sitting back is not going to accomplish anything. french president will award the trio the legion of honor. vice president joe biden reportedly leaning towards another run for the white house.
"the wall street journal" "wall street journal" says a deciding factor is whether he can put together a competitive campaign at this stage of the race. the vice president surprise visit with elizabeth morin did raise questions about a possible run. weakening to a tropical storm status still approaching the northern caribbean islands in the rain could be a welcome sight for the drought stricken region. maria, looking at another huge sell off this morning. not to minimize that in any way. here's one investing your money with better return than stocks and gold as well. according to telegraph, baker said cap did pristine condition has increased in value talkers and each year since the year 2000. that is compared to 9.6% return for gold and an average of 2.8% return for savings account. here's one example. the "star wars" death star first
went on sale for $393 in 2000 bright alice current value, $2300. $2396. a huge return for some fancy, pristine while catholic goes. maria: thank you, nicole. i have a lego man in my living room. i always say it is art and i will sell it for a lot of money. >> i am sitting here kicking myself. maria: the story of lego has been such a great business story. it's really interesting. dagen: as if you've never played with the facts. you have to keep them in the box. they were in pristine condition when he saw them. i read the article. i love legos.
if you give me a lego, i will crack the box and put together. maria: this company has never changed his stripes that is just lego blocks. >> a branded themselves with all the superheroes. dagen: the mass return is on this thing called the café said. the café corner is like a hotel that has almost 2100 paces. the return was 2200. legos aren't going anywhere. i'm the one in stock and lego set. >> the fact we had this conversation speaks to how lousy the rest of the investment is. speak trained to looking at a market selloff. china sold off overnight 8.5% and you also have a selloff in the price of oil. there's the futures rate now down three and one 3%. the nasdaq smashed out nasdaq
smashed on four and two thirds%. they derived legendary investor foster freeze will join the conversation. keep it right here on the fox business network with a tough day for global markets. stay with us. the promise of the cloud is that every organization has unlimited access to information, no matter where they are. the microsoft cloud gives our team the power to instantly deliver critical information to people, whenever they need it. here at accuweather, we get up to 10 billion data requests every day.
maria: a weekday this morning for stock prices or global selloff. features that allow the morning right now with 520-point. the nasdaq down 4.5%, almost 200 points we expect at the opening of trading. we spoke with jim rogers earlier and he said now we pay for the price of multiple cash injections and historically low interest rates. he blames the fed. >> we've been floating on a gigantic ocean is that the,
british and americans staggering amounts of money. the artificially low interest rates and only pay the price and we haven't started paying the price for because markets are naming them down 10% yet. maria: now we move into a series of. are we expect rates to come change and that is what is behind this. >> one of these points about the artificially low level of interest rates. over the world look like as an alternative. the european central bank tried to raise interest rates back in 2010. what a daycare? they got another recession. they got an economy in so much trouble that they had to turn around and push interest rates into negative territory. japanese tried to raise interest rates in 2006, 2007. they've had three recessions since then. interest rates are low for reasons that don't connect.
>> there's two players here. monetary policy, fiscal policy. we had obama and all macs. the fed was the only game in town. >> charlie, there is the third player here. what is the market telling us? but that doesn't control the 10 year yield. maria: it is now up 1.97%. if the fed raises rates, what would happen? they would go down because people would say were going back into a recession. >> there's other reasons why people buy u.s. treasury including a global flight. maria: at some point while the structures rates had a lack of fiscal policy. >> if you look if you look at what happened, the stock market crash of 1929. the fed did not in a sustained break into the business of
raising interest rates until the 1950s. >> we are forgetting one thing happening right now that's never happened before. i'm porting 2.5 billion people into the western capital experience. bottled the india china does south africa southeast asia. that is creating excess labor, access products and a specter of global deflation with the central banking. dagen: it had a bubble in commodities in a way. you have a bubble field are cheap and easy money. cheap and easy access. >> i'm not saying they're going to do it becauss. >> i'm not saying they're going to do it because now my opinion is our economy is a lot stronger than it was in 2008. dagen: the nasdaq and s&p --
maria: it is a lot stronger then only. >> it won't disturb the yield curve, but it sends the message that the fed wants to seek normalization. >> i tell you something to talk about it besides these days. the swedes try to raise interest rates in 2009 after the financial crisis and ended up having to reverse course. they are very worried they will do this. >> talking about sweden, give me a break. >> they sure are. other countries it tries to rate interest rate. >> they should talk about fiscal policy. >> the fed has talked about that. >> nobody listened to it. >> they don't have any help on this. an easy job for taxes.
maria: good morning. rough day for markets. wall street breaking for a burger love them. i maria bartiromo. we are non-correction territory. the dow jones industrial average down 10% from its most recent high head in may. it is monday, august 24th and with a fox business not work dagen mcdowell. john hilsenrath from the skye bridge capital founder and wall street host anthony scaramucci. and senior correspondent charlie gasparino. a 530-point job friday. a similar selloff at the open of
trading this morning. major averages dropping at least 3% so far. indications show us the galloping down better than 500 points this morning across the board looking of weakness. it features a dated and looking at a decline of more than 600 points. stocks sold off for china erasing all the kids for the year with an 8.5% selloff in the shanghai composite. that set the tone. europe continuing to spread across the board with major averages in london, paris, germany. for% and 5% right now. oil price is $39 a barrel. fresh 6.5 year lows on crude oil. the latest from the florida cme group in chicago. is there more room to fall? when is it time to look for opportunity? stocks on edge after the worst weekly drop in four years. joining me right now is investor
foster friess, backer of senator rick santorum. good to see you. thank you for joining us. >> maria, a delight to be here. i just flew first class. you don't have to go any place. it's unbelievable their service. maria: that's wonderful. sounds like you're coming off a nice trip. what's your take on the global market selloff. you're coming home to a big story for markets. >> we should look at the market versus 18 months ago. we should have crashes from time to time in the world come to an end seven different times. at the age of 70 at seeing good dog, good horse, good women in john deere are. i think people get very alarmed here at the rate of change and this is a time where you start looking at the opportunities and
stocks that might be holding wellness market and also remember every time there's a negative by gas prices declining, that's a positive for some other industries. if you look at low interest rates, people say that's great to spur industry but bad for people on fixed income. every negative has a positive and our job is to find them. maria: here is charlie gasparino. >> hello, foster. in the late 90s to an 90% into cash during the stockmarket bubble. you obviously got crushed. was that a learning experience for you as this is going on right here? >> it taught me to stick to principles because what we did when the earnings are deteriorating and people are not meeting expectations, we stick to principles and don't invest in companies that now is the
situation. stocks on that because people were going to american stocks even though earnings were deteriorating. i learned because we were heralded by "the wall street journal" for our success in one of the best performers two years later as he don't look at the short term so much. you look at principles of buying companies well managed, this season's growing well and doing ratings. if you look at the gyrations of the last 20 years it didn't affect the real starring. >> what makes you pull the trigger right then. he pulled the trigger pretty radically. you look good, but you went through to rough years. what made you pull the trigger right then? >> i think we only went through one bad quarter. we were up 3%. we didn't lose money. that is the key point. we did not perform the internet
stocks which went crazy. what caused me to pull the trigger is just to have a disciplined investment theory by companies growing rapidly well managed and selling p.e. ratios. if you don't find opportunities, stay in cash. i missed 76% cash. companies were deteriorating earnings and people didn't see it coming. it didn't matter because i people sell stocks somewhat irrationally. maria: we've been talking about monetary policy versus fiscal policy. you know you are backer of rick santorum. why do you think he is the one to bring onto the stage fiscal policy and get the economy strengthening and sustained growth? >> is very much a champion as you may remember a blue-collar conservatives that 74% the americans have not originated
from college. i graduated from college but i've been an underdog most of my life. was blessed by the american dream. $800 of relief and he understands the dynamic and understands we can't go forward with ridiculous regulations. yes we need regulations. number two, he was able to get elected to times with the million mark democratic voters than republican voters. is the first one who wrote back a title meant from the government when they got rid of the welfare reform act was champion vinny was 38 years old. he understands how the economy works. if you look at the major issue facing our nation and world, who is that? immigration, health care. maria: what is that, foster? >> it is the global jihad movement. everyone talks about isis and
the taliban and al qaeda. i must've put the dots together that we have a huge opportunity to confront. we are in world war iii. this generation's pearl harbor and we are in denial. maria: dataset the selloff is about this morning in terms of growth in the economy. do you think the federal reserve will raise rates next month? >> our philosophy was to ignore those kinds of interest rate challenges and the overall economy. if i call the company and they say 12% as well, we would say thank you and go on to another because we want a company 12% despite the economy. maria: you are saying it doesn't raise rates, what are you saying? >> or see if you can find companies that made a lot of money and you will find them.
i'm not the one to talk to about interest rate because we tried to make that irrelevant. >> foster, let me ask a question about global growth. why hasn't the world grown faster coming out at the last financial crisis? >> i'm not the guy to ask that but i'm very confident you asked me such a high-powered question. i'm just a little stockbroker that had a good theory. >> you say you look for companies that grow 12%. are you finding companies growing 12% and tell us what some of them are. >> i was using it as a figure of speech. if a company with cells that grow at any rate, 5%, 10%. the point is we tried to find companies were dependent on interest rates.
>> are you fighting this company is a potential to grow fast? are they there? >> i'm 75 years old. i left the market 12 years ago and i've got a little money in a mattress but i'm not following stocks on a day-to-day basis. that is for you to give senator smart hedge fund guys to answer. maria: we will be watching the market. foster, we love your insight. thanks for stopping by. >> thank you for inviting me. it's an honor to be asked. maria: fosters friess joining us at the lows of the morning. a rough opening. for 6.5 year lows on oil. we'll take you to the florida cb group. looking at the dow jones industrial average expected to open 700 points. we are done better than 4%. nasdaq 200 points. looking at a global route. the u.s. market under severe pressure right now.
we are there headlines top in china to flood the economy with cash. china looking to flood its banking system with liquidity if you lose faith in chinese leaders. joe biden leaning towards a 2016 run. joe biden leaning towards entering the race illustrating how both major party campaigns are in a state of flux. gasoline lagging behind with refinery glitches in california and midwest missing out on steep drops in pump prices but other u.s. drivers are enjoying. stay with us.
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selloff a day before. oil taking a hit again falling to a new 6.5 year low. phil flynn standing by right now with the indication how much lawyer can oil go in what is the connection string oil and stock. >> right now oil is coming into the major support area around $38 a barrel. that area tried to hold it in the last financial crisis when it fell they really made the fed move towards quantitative easing. that's an important area. we see demand destruction right before our very eyes. the selloff in global stock markets of freezer and also slow down demand. obviously, china is ground zero when it comes to the economic slowdown. china was ground zero for global commodity growth. put those two together and we have the worst possible outcome and now we see a lot of pressure
in prices but it is not just oil. it is across the commodity spectrum. i saw a headline from across the soybeans had a six-year low. farmers look to export grains in china and they are concerned the numbers will fall as well. industrial metals as well across the board. itu. >> this is across the board. what would you attribute the sharp selloff in the commodities complex? is that all china or something else? >> the fear of contagion. if you go back to the beginning of the crisis is targeted in europe when greece decided to vote out of the euro zone. they flow down from china that we start to rebound. exports took a tumble and that's when the chinese government moved the value in the current the and now it is a concern that what happens in china will impact your up and get back to the united states. >> phil flynn with the latest.
charlie gasparino. >> when we talked about contagion in oa, we had a correction in housing. the banks ballad sheets were contingent. they owned a lot of mortgage-backed securities that reflected housing prices. you don't have that now. we have a contagion of a different sort. this is not 2008. the banking system fundamentally in a much stronger state. you can make a case that this is really good. it corrects a man may raise rates. there's no long-term capital out there either. >> that's was so interesting about the conversation this morning as we say the u.s. economy is in pretty good shape. you typecast after guessing we are not in bad shape and yet every 15 minutes dow futures are
going. >> that's absolutely right. that's why i'm thinking it's a lot weaker than what you are saying. i don't think it is so strong. >> the fundamental underpinnings is not in horrible shape. >> the fear and panic and weakness could create an economy that weekend, could create an economy in recession. you see this kind of fear-based selling. we been through a lot in no way can a lot to the year 2000 we are conditioned to behave -- >> we close up in the air slightly. maria: what you were talking about is the u.s. relative to the rest of the world. but when you look at the u.s. economy straight out, we just haven't moved. sell tens of millions of people unemployed. >> the stock market rallied under those conditions.
now the stock market is tanking. people don't believe over talking about. >> the federal reserve watching the market activity today. how does this play into their position? >> and makes it harder to move. not only find stock prices that the strengthening dollar. there's no question that makes it harder. >> the best thing i've ever heard this stock investors are. they trade off headlines every day. maria: i do not agree with that. >> anybody who would belong to any of these commodities because the economy bubble is blowing up field by the federal reserve and the 0% interest rates. >> the other thing we have to talk about in this relates to an issue we're talking about earlier. the in the past if the economy sinking had aml a could use to
get the economy going again. this is something that worries me. maria: i've alloyed being negative q. e. four. >> i agree. i also think we are more isolated from the stuff going on overseas. we have a fairly inclusive -- >> where corporate earnings have .04? >> i met stock traders. you were good to correct me. that's why the average investor has to take this -- not with a grain of salt, but be wary about mimicking what is going on here. maria: it's the difference between trading and investing. future is plunging following friday's 530-point drop. a serious deterioration of guys this morning. former new york stock exchange chairman dick grasso will give us numbers active.
>> i want to take care of the middle class. we had a tremendous rally in alabama and people said you're treating us fairly. the hedge fund guys are paying nothing. it's one thing if you are building building. you put people to work and his hedge fund guys move around papers. maria: bow with donald trump. moving around papers? >> that's another politician. probably going to make elizabeth
warren his vice presidential nominee with comments like that. anti-american, very divisive. you can tell donald desantis. the greene county's bully association. you've got to cut it out nonstop this crazy rhetoric. >> i've had a problem with the way he talked about women for years. >> i don't like the way he talks about the event or a friend, making kelley. politicians do when a car trunk because he's got a big mouth. i'm not a politician. bring at, donald. bring it, donald. >> you think they'll do attack ads? he's a smart card that will implode.
roche, scott walker and marco rubio. their internal polls are showing that is 25% -- i really don't want a wrap. this nonsense will end before thanksgiving. maria: dairy ago. anthony scaramucci on the record about donald trump. we are looking at the worst performance in 2011. dow futures with a sellout to the tune of 600 plus at the open. next is new york stock exchange dick grasso. he is going to give us some days. don't want to miss that. back in a minute. can a business have a mind?
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>> we i continue with breaking news. i'm maria bartiromo. 8:30 on the east coast. with us dagen mcdowell and wall street journal chief correspondent jon hilsenrath and anthony scaramucci and senior correspondent charlie gasparino. the major market averages in selloff mode this morning after a brutal day in asia and europe sharply lower, here is the u.s. looking at almost 700 point selloff at the beginning of trading. take a look off the lows of the morning and still, futures indicating a selloff. better than 600 points and there will be few places to hide today. the nasdaq composite. 2 1/2 better, 4%. dick grasso joins us by television and thanks for weighing in. >> good morning, good to be with you. maria: explain the new york
stock exchange on a day like this. they put out a note about the circuit breakers. they do not step in until a 7% selloff. what are you expecting? >> before we get to the intercassies of the market mechanisms. the viewers have got to step away from this irrational depression that seems to be going around the globe. we have to remember, the u.s. economy and anthony spoke about this, as have your other panelists, the u.s. economy is strong, we've got low energy costs and relatively low interest rates, a strong housing market. time productivity. banks in a strong financial position and consumer stronger than they've been in the last 15 years, so, you know, i think you have to take a little bit of a step back and separate traders from investors.
>> right, dick? >> traders, charlie, you nailed it a little white ago. traders are there to trade, okay? the trend is their friend. if it's going down, they're going down with it, okay? they're selling into it. step away from that. remember, up until the late spending of this year, this has been the most hated bull market since world war ii. and people were complaining about how many people, because of the march '09 meltdown, you know. the '08, '09 meltdown, how many people missed a 7 plus thousand point appreciation in the dow. so, i think this creates a very normal correction to an upward secular bull market and those investors out there who are investing for retirement or for college funding for their 8-year-olds or buying an em who down the road, have a
tremendous opportunity and look what were we thinking, what was the market thinking? >> to the market mechanisms, maria, yes, there are, you know, call them shock absorbers that the markets have to cushion the volatility, both on the down side and the up side, but look, as china is learning the lesson, you don't manage the market artificially. you know, what a lot of people forget is that shanghai doubled in 12 months, it's given that back or giving a lot of that back, you've got to let the market find its on level. >> it's charlie gasparino, your good friend. >> hey, charles. >> and irritant for your entire career. who do you like in the presidential election? your buddy langone put on line for you to support christie or do something brave like support donald trump?
>> well, ken has not been out there raising money, but as you well know, chris has been a favorite of mine for a long time. but look, with 17 candidates in the race, anything can happen. and while donald has, i think, a very impressive lead at this point, you know, i'll call it-- he's polling between 25 and 30%, that means you still have somewhere between 70 and 75% for someone else. >> you had a close personal relationship with hillary clinton over the years. do you still have that? did that ever translate into you supporting her? >> well, you know, when she was in the senate she was a fabulous representative of the people of new york and i have to say this, all right. she took the time to understand the financial markets. she took the time to appreciate how important the new york
stock exchange was. not just to the state of new york, but to the united states being the capital of capital of the world. she was a real student and supporter of ours and you know, i think the world of her from that perspective. look, there are lots of things i wouldn't agree with with respect to what she's currently talking about, but you know, i'm at heart an independent and always have been, charlie, i'm going to look at whoever the two nominees are and frankly, you know, at this point i think it's very hard to predict that. anthony was saying, you know, a few minutes ago that, you know, this time the life cycle, herman cain looked like a shoo-in. you can't predict what's going to happen given the volatility. >> do you expect a worsening of the market as interest rates go higher? we've been talking with jon hilsenrath. >> maria, when you say interest
rates going higher. interest rates are zero. you're not talking about interest rates looking like they did in '80 and '81 when the government borrowed money at 15 3/4% long. you're talking maybe 1%, you know, rate. that doesn't hurt economic growth. maria: all right. >> and that doesn't in any way depress the entrepreneurial spirit we have in this country. we're in a great position. you know, one of the things-- i'm a great follower of the writings writings brian wellski bmo, over the last five years it's china, china, china, and i think the next five years it's going to be u.s. and the u.s. economy leading, look, 2% can't remain. we've got to get people into office and people into the both houses of congress that want to do something. maria: which is why this election is so important.
here is jon hilsenrath. >> i want to talk about retirees and this market. and my dad, retirees and they wake up hearing that the economy is fine and their stock portfolios are going to open down 600 points. what's a retiree supposed to do when they've pushed into stocks and stocks are tanking and fixed incomes are no place to sit. >> well, hopefully they haven't been pushed into stocks that are on the extreme edge of the risk curve, jon. there is a very strong case that's been made over the last few years that you want an equity portfolio that looks more like a fixed income portfolio. you know, i think that fixed income, by the way, your he a going to lose more money in fixed income than you've ever lost in the stock market over
the next five years. >> in treasuries, dick? it's dagen mcdowell. >> dagen, whatever the instrument, the longer the duration, given the propensity that rates are going to rise, not to flatten or go down, you're going to lose a lot of money. dagen: let me finish. dick, that's what the people have been saying since the financial crisis of '08, that bonds are in a bubble, bonds are in a bubble and if you bought anytime there was an up tick in yield, you are making money in treasuries and individual investors have been selling wholesale domestic equity funds for years and right now, they look smart. >> dagen, just remember one thing, whether it's the fixed income market or the equity market, you don't lose money until are you make a sale, okay? and i think that's a very important discipline, periods like this one and--
>> one more political question mayor, are you running as mayor against bill deblasio and-- >> charlie, do i take from your question that you are still angling to become press secretary? >> i want-- i want commissioner and restaurant association, and work for the new york city sanitation department. i love the idea charles gasparino, deputy mayor for economic development. maria: what are you saying, dick, you don't want to enter the mayoral fray? >> i think there's a portfolio of great potential candidates for mayor of the city of new york. maria: dick, great to talk to you, we proosh appreciate you with the market. a mechanical breakdown at a bp plant near chicago putting a strain on gasoline prices and
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oil prices another part of the story taking a huge hit today. now below $39 a barrel to fresh six and a half year lows. jeff flo being-- flock right now is down from bp refinery in whiting, indiana. jeff, good morning to you. >> largely shut down, maria. indeed. that would typically be good news at the refineries not in one. the bp refinery behind me, the largest in the midwest and consequently with a huge impact on prices shut down. bp won't say exactly what the problem is, but it has to do with their biggest disstilllation unit which apparently has leaky pipes and some people say it could be bigger than that, months before this is back on-line. take a look what that has meant in terms of oil versus prices. typically when oil comes down, so does gasoline. the retail gas chart versus the price of oil, they're not in tandem at all. if you take at a look at the midwest and similar problem out
in california as well with refinery issues there as well. take a look at chicago gas, versus oil. it's just incredible what it has done to prices here. so, it's the worst of both worlds, we're getting low oil prices which typically would be good news for motorists, while their stock portfolios shrink they're paying more at the pump. pretty amazing. maria: jeff, thank you. we'll see if we actually get to lower than $2 a gallon on that. a massive selloff. a global route. better than 550 points, we've been going back and forth between 550 and 600 points at the open. the chinese market continued to stumble, 8 1/2% lower on the shanghai composite. japan this morning, down 4 1/2%, hong kong down 51/2%. back in a minute.
>> welcome back, we have a sharp selloff underway this morning. futures plunging in the red ahead of the opening bell. let's go to nicole petallides on the floor of the new york stock exchange. nicole: good morning, the traders are coming in, you can't see them all sometimes, but they're coming in and there's a lot of chatter whether or not it's a buying opportunity some weeks, but there is is there's the first thing front and center. the stock index futures pointing to a lower open to the tune of 623 points, in order to halt trading here on the floor of the new york stock exchange, it would be about 1100 points so hopefully we don't get to that point. investors are jittery enough already.
but hopes for a bounceback and those are not coming to fruition, we're taking our crew from asia and selling a selloff underway. >> all right, thank you. don't forget to start your day every weekday with sandra smith, lauren simonetti and nicole petallides, they give the first look at global markets every day 5 a.m. eastern. former economic white house advisor larry summers taking out an op-ed, no time for an interest rate hike. the headline is the fed is set to make a dangerous mistake. from his comments, quote, raising rates in the knew future would be a serious error that would threaten price stability, full employment and financial stability. is what we're seeing the past few days a sign of investors getting ahead of an expected fed increase? jon, i want to get to you on that. anthony, give us your take first. >> i respect larry summers a great deal, but i think they need to raise rates here.
the likelihood of them raising in september is iffy unless the markets rally back and i think it's an overblown selling reaction so my guess is they're going to raise rates. >> do you think they'll raise in september? >> keep in mind where larry summers mind is at, he penned the term secular-- >> and that's his narrative. >> and he believes that we're in a sort of long-term secular, very low growth economy that not even expansionary fiscal policy can address. he's talking his book, because, remember, he was on president obama's-- >> i sort of see stagnation. >> well, yeah, because you have-- of course, there's stagnation because they didn't do anything for eight years, but he's saying even if they did stuff, this is at the basis of his theory and really to flesh this out, he said because of the global trends, you know, like china and all of this cheap labor and blah, blah, blah,
we're going to have stagnant growth in the u.s. maria: i think we are having stagnant growth is it my point, not just talking about the fed not doing anything. i'm on that camp, it's just okay. do you think that there's no way to address it? don: don:. maria: no, what you said earlier, fiscal policy. >> he would agree with a lot of what you said about the last part no way to address it. what he wants to do, he wants to see more government spending which he would call investment. maria: infrastructure. >> infrastructure and education, but you're making the important point here right now, which is that the economy is growing very slowly and it's already growing slowly in the u.s. and now we have the headwinds coming from overseas and now is not the time for tightening and raising the cost of credit. >> and he would never raise rates. just remember that. >> and what's interesting here is that there was a race between larry summers and janet yellen to become fed chair and
he wanted a job. he was seeing the hawk and he was seeing the dove and now we have larry summers the hawk saying, no, no, no, don't raise interest rates and janet yellen has been talking about pulling the trigger. >> what is he seeing? >> he's seeing potentially the next head of the federal reserve after the term is up. the issue is like when you're in a market down turn like this and when the fed is in such a precarious position on the precipice of the beginning to raise interest rates, who do you want communicating with the rest of the world and investing in public. mr., blow hard, and points his finger at people or somebody like your grand-- janet yellen, i get the optics, mr. hair trigger temper point your finger. >> just to look forward, the fed has the and ul retreat. maria: jackson hole. >> the person who keep our high
on isn't janet yellen or larry summers, it's a guy, stan fisher speaking on saturday. the next clue about the fed comes from stan fisher. >> he said we're raising rates. dagen: is it a good thing that yellen isn't there this week? >> we haven't seen much of yellen lately. if the fed is doing anything, she needs to be making a case for it, one of the arguments why-- >> oh, interesting element there that you bring up. wall street braces for a brutal opening with futures sinking down 650 points right here on the fox business network. more coverage. these two oil rigs look the same.
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three market major in correction territory as soon as the opening bell rings. maria: jon. >> every guest we've had on is talking about the underlying fundamentals in the u.s. aren't so bad and every hour the market ticked lower and pre-opening of the market ticked lower and lower. there's a fundamental disconnect between what the market sees and what the experts say they're seeing in the economy. maria: which is why i think we have to study i what we're going to get the rest of the week. consumer confidence and. >> the market will be 3 to 8% higher than we are now by the end of the year. maria: 3 to 8%? >> where it opens, if it opens 600 down. maria: in four months? >> a lot like what happened last year, the fundamentals are intact and you can bring me back and dunk me here if-- >> and right there. don't forget the hair, you can dunk me up to my eyeballs.
dagen: no, dunking is getting the hair wet. >> i would say the market, and you'll agree with that. >> the markets are fine here. >> the markets are the heroin addict the fed is the heroin dealer, when you come off heroin, you go into withdrawals. >> we've had that. >> and it's a good thing long-term. >> got 2000 points. maria: so you're happy about a correction? >> we haven't had a correction in how long. >> the idea of the coming off the heroin is, everything that's happening is making the fed less inclined to go ahead. >> we're going on-- >> that means the addiction continues. >> the thing we haven't talked about enough, i think, today is the possibility that we're headed not towards a crash, but towards another bubble. if interest rates are going to stay very low, i think we see inflated asset prices in commercial real estate and-- >> and this is what you're seeing. >> the market is only down a couple of points on the year and it's very likely that it
will end higher in december. dagen: this is what you're seeing the collapse of a commodity bubble. you watch the currencies of these emerging nations, brazil, russia, that's what is going on here. >> long-term. maria: and that's why the chinese just devalued their currency that sparked all of this. the markets are telling us one story though, guys, got to sell off 600 points in equities and have the 10-year yield below 2%. 1.9%. >> what am i missing? if i think the fundamentals are-- the underlying fundamentals of the economy is okay? listen, sometimes the market is irrational and the market telling me something. >> the markets were going crazy the last couple of years and the average u.s. investor was buying gold, a lot of them. >> buying bonds and selling u.s. stocks. what's shocking here is the way that our psychology as individual investors change since 2008, how did that play out in this. maria: that's the bottom line,
dagen mcdowell, jon hilsenrath. anthony scaramucci. we have coverage all day long on fox business. "varney & company" begins now, stuart, have a good show. over to you. stuart: thanks, maria. when there's a big market selloff, mondays are often the darkest of days, and today is no exception. good morning, everyone, it's a tough day. if you have money in the stock market, watch out below. the dow may be down 670-odd points when trading starts. it dropped over a thousand last week. this ranks up there with 1987 and 2009. china is the trigger, another drop there and fear that beijing may have lost control of the market and any economy that relies on oil revenues is in deep, deep trouble.