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tv   The Kelly File  FOX News  August 25, 2015 1:00am-2:01am PDT

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set your dvrs, so you never miss an episode of "the five." the opening bell, the start of an absolutely manic monday on wall street. a huge drop more than 1,000 points in the first few minutes of trading followed by a rapid ascent, followed by another drop. this is "special report." welcome to washington. even in good times, investing is not for the faint of heart, but today's wall street experience was enough to give to boldest trader motion sickness. veterans say they have never seen anything like today. the dow lost 588.
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the s&p 500 was down 78. the nasdaq dropped 180 with more concerns about tomorrow's open. we have fox team coverage tonight. liz clayman outside the new york stock exchange with what it means for average investors, just like you, but we begin with james rosen at the white house tonight. good evening. >> reporter: good evening. today's roller coast ride on wall street presented two immediate political changllenge. first, to avoid spreading fear. second, to avoid blame for the fragility of the economy. the dow jones industrial average plummeted more than 1,000 points, a reaction to china's main index falling by 8.5%. bad enough to wipe out all gains
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this year. >> there's an element of post-traumatic stress disorder. investors, households, went home over the weekend. the stock market fell so much. is it time for me to get out? >> reporter: fluctuations persisted throughout trading, leaving president obama's spokesman saying the economy is far stronger. >> some people can feel confident. >> reporter: on the presidential campaign trail, the stock shock prompted indictments of president obama's stewardship starting with donald trump. the real estate mogul who faulted the white house for poor planning and letting china dictating the agenda.
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>> china has problems. they have big problems and they're bringing us down. >> i don't think anybody would make the case that our economies are coupled. what we would recognize is in a 21st century global economy countries of the world see their economy as more intertwined. >> reporter: various data suggests the u.s. is more dependent on china's economy now than when barack obama became president. our trade deficit with beijing is on track to be more than double what was in 2009. exports to china make up a greater percentage of our total exports than they did six years ago. chinese holdings of our treasure bonds have almost doubled since 2009. direct investment by china into the u.s. has doubled under the obama watch. carly fiorina said the swings on
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wall street have to do with politics. >> the underlying fundamentals of the u.s. economy are not that strong. 2% growth is pretty lackluster. >> reporter: president did meet with the secretary of the treasury today, but he has not placed any calls to china. he will be meeting with the chinese president here in washington next month. >> let's bring this home a bit now and find out what today's financial roller coaster means for you. your 401k or portfolio. joining us now liz clayman. how should the average investor at home react to today's news? >> reporter: well, we saw the initial reaction and it wasn't pretty. a lot of people jumped in, bret, and sold. you have to forgive people for
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having queasy stomachs. the market had a panic attack. it was like mr. toad's wild ride. it was amazing to watch the online brokages, the t.d ameritrades. they saw such spikes in volume. what does that mean? people were jumpi inin ining in trying to sell. should you? have you real lost money if you didn't sell as the market drops? we saw the market cut its losses in half. yes, we totally understand there's major concern. people have 401ks. when you see a trillion dollars wiped off the market value in the blink of an eye, it is very disconcerting. we're at more than nine stocks on the dow jones industrials like disney and apple. they're down 20% from their
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recent highs. names like walmart, dupont, united technologies, and yes, apple. you just have to stay calm and wait it out. >> does this change the federal reserve's plans to raise interest rates? >> reporter: a lot of people say they don't understand how it couldn't possibly change their plans. janet yellen, the head of the federal reserve, has said we've been at zero for many, many years and that's not really realistic. she had telegraphed it's probably going to be sometime this year, maybe even september. that's in a few days last we checked. we have barclays, which is a u.k.-based bank. they have big operation in times square. they said they are changing their focus from september 2015. they expect the next interest rate tightening won't be any sooner than march 2016. >> are you getting nervous about
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your investments? do you see this as a temporary blip? let me know at or on twitter. let's turn to other news. iran has been known to oversell its military capabilities in the face of u.s. superiority. but focx news is learning tonigt their newest weapon of war is no joke. neither is its apparent disregard of the president's nuclear deal. jennifer griffin is at the pentagon tonight. >> reporter: in a move designed to put the world on notice, iran unveiled its newest ballistic missile. at a ceremony to mark iran's defense industry day, the iranians revealed their new fatah 313, which has a range of 310 miles. any transfer to iran of ballistic missile technology during the next eight years is
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supposed to be barred by the nuclear agreement. armed sales are supposed to be embargoed for five years, but iran's president seemed to scoff at that part of the deal. >> translator: we will buy weapons from whoever we deem necessary. >> reporter: republicans are trying to block the nuclear deal in congress. harry reid signed on this weekend. today michigan senator became the 28th senator to support the deal. the white house needs 34 senators to block a veto override threatened by republicans and push back on reports of a secret side deals that allows iran to take its own soil samples at a iranian military complex suspected of nuclear activity. >> the idea of developing this inspection plan didn't
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compromise our safe guards in any way. it's not a side agreement and it's not a secret one. >> reporter: all of this coming on the heels of revelations by a former israeli defense minister that israel was preparing to conduct a military strike against iran's nuclear program three times since 2010. most recently three years ago, but called off the strike in the 11th hour. bret? britain's foreign minister says iran can be an ally in fighting terrorism, but london must tread carefully. phillip hammond met with iranian president today. hammond says the countries share common ground despite a deep legacy of distrust. up next, is joe biden going to take on hillary clinton? here's what's happening around the country. the crash of a bus into a
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townhouse of queens this afternoon. it tore a whole through the corner of the building, virtually destroying the first two stories. 17 people were hurt. dozens of firefighters and police officers responded to that scene. fox 8, our affiliate in new orleans, where a louisiana state trooper has died of a head wound suffered while he tried to help a stranded motorist. he was shot by a man whose pickup truck was stuck sideways in a ditch. and this is a live look at boston from our affiliate fox 25. the big story there tonight a violent plot at the pokemon world championship this weekend. gunmen were stopped as they attempted to enter that event. attempted to enter that event. that's tonight's
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why are all these people so asleep, yet i'm so awake? did you know your brain has two systems? one helps keep you awake- the other helps you sleep. science suggests when you have insomnia, the wake system in your brain may be too strong and your neurotransmitters remain too active as you try to sleep, which could be leading to your insomnia. ohh...maybe that's what's preventing me from getting the sleep i need! talk to your doctor about ways to manage your insomnia.
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the major question in presidential politics tonight is will he or won't he. vice president joe biden is said to be moving closer toward a decision on a presidential run and a challenge of the frontrunner once perceived as unstoppable. we have fox team coverage tonight. >> good evening. with hillary clinton's e-mail trouble not going away, many democrats seem more convinced than ever that joe biden is leaning toward a bid for the white house. >> there's probably no one in american politics today who has a better understanding of exactly what is required to mount a successful national presidential campaign. >> that was josh ernest's assessment of the possibility of
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vice president joe biden running for president. speculation ran wild about whether he was seeking an endorsement or even a running mate. >> he's talking to somebody like elizabeth warren. i think it is no surprise he would want to talk to somebody like that. >> reporter: ernest offered this context about what biden has meant to mr. obama. >> the president has indicated his view that the decision he made, i guess, seven years ago now to add joe biden to the ticket as his running mate is the smartest decision he's ever made in politics. >> reporter: that raised a few eyebrows of obama's advisers past and present. meanwhile, bernie sanders in new hampshire called for a serious debate of the issues. >> we should not be going around
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making terrible attacks on each other. what impact joe biden will have on the race? i honestly don't know. >> reporter: howard dean spent the weekend saying the e-mail scandal is manufactured partly by a media that is bored. there were 32 tweets on saturday defending clinton on the server issue. clinton herself warned about dangers on the internet. >> hackers break into financial institutions and personal e-mail accounts, so we need successful strategies for combatting these threats and more. >> reporter: a former u.s. attorney says he'd love to cross examine clinton. >> she deletes the e-mails. that's obstruction of justice, martha. somebody needs to hold her to account for this. >> democratic voters will choose the nominee, but josh ernest did
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not rule out mr. obama endorsing a candidate. carl cameron has tonight's republican wrapup. >> reporter: jeb bush went to the u.s.-mexico border for a security briefing to address his conservative approach to immigration reform. >> mr. trump's plans are not grounded in conservative principles. it is not realistic. it won't be implemented. we need border security in order to get this country back on track. >> reporter: trump calls politicians stupid and bush weak. >> he has no clue. he's never going to be able to do anything. >> reporter: trump has pointed out that the bush's wife is from
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mexico. >> i think he'll now find out it is not an act of love. he says people that are crossing or crossing as an act of love. >> reporter: bush was ready and planned the event to go after trump's policy of immigration. >> it will create friction with our third largest trading partner, which is not necessary. i think he is wrong about this. >> reporter: at the iowa state fair last week, he said he absolutely supported trump's call to end birthright citizenship going forward, but backtracked yesterday. >> we need to enforce the laws, including those in the constitution. >> trump has a good daidea. trump has a bad idea. >> it is not about your title. it is not about your airline or your helicopter. the status quo of washington, d.c. needs to be challenged now. i have done that all my life.
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>> reporter: to the dismay of trump's rivals and critics, he's adding a national organization to his frontrunner status. >> he's getting ten times the amount of coverage that any other candidate is getting. the dumbest thing a candidate can do right now is give him more coverage by answering all the trump questions. >> there are people who will do well at times and not do well at times in this race. focus on yourself. >> reporter: they get left out of the headlines if they ignore trump. if they take him on, it becomes a slug fest. today, it appears bush is ready to join the battle. it sounded like a good idea at the time. now divers have to clean up the environmental mess that environmentalists created.
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france's president says three americans and a britain, who subdued a man with an assault rifle on friday on a high-speed train are a source of inspiration. the group, which includes two u.s. military personnel, is being honored for averting veritable carnage. >> reporter: france wasted no time and spared no effort in expressing its gratitude. today, president francois hollande said he couldn't let the three americans return home without his country's most prestigious award, the legion of honor. >> translator: the solidarity
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which led you, empty handed, to tackle a man armed to the teeth. >> reporter: the three men were on vacation on a train from amsterdam to paris when they saw a gunman move through their wagon and made a split-second decision to attack and disarm him. stone, wounded in the attack, went on to attend to a passenger who had been shot, reportedly also trying to stop the gunman. the object of universal gratitude, he took time to thank those who took care of him. >> i just want to say to the french people you have been more than kind. the surgical team that reattached my thumb, thank you. >> reporter: stone is now at a u.s. base in germany receiving additional treatment. the gunman is a 26-year-old
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moroccan. >> we can put in place the best intelligence networks, but somebody is probably going to get through at some stage. my vision of this is as citizens, we need to be prepared to think about how to act. >> reporter: the gunman claims he is no terrorist. he was just broke and wanted to rob the train. as two americans put it, you don't need two guns and eight magazines to do that. south korea and north korea have diffused their latest convict. the south agreed to stop propaganda broadcasts after north korea expressed remorse for land mine attacks. the u.s. army says it is conducting an investigation into the cause of multiple explosions at a u.s. army depot 25 miles southwest of tokyo overnight.
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no injuries were reported in facility. moments ago, the pentagon said it does not suspect terrorism or sabotage. flights by a vintage aircraft are being severely restricted in england after saturday's air show crash that killed at least 11 people. the hawker jet slammed into a highway after failing to pull out of a loop maneuver. the crane removed the jet's wreckage today. it is the tenth fatal accident at a u.k. air show in the last 15 years. a lot of talk in the twitterverse about a disturbance in the force here in our corner of the universe. we'll address it and what nasa is saying about it all next.
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now some fresh pickings from the political grapevine. the big apple wants it in writing. you can hold it in your hands. and for that, the bill is not small. city government has wasted $1.2 million in the last five years hand delivering hard copies of legal papers, even though a free
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electronics system is available. the city law department says e-mail is too confusing because there are often multiple lawyers working on the same case at different times. the head of the state's court e-mail system disagrees, saying private law firms use electronic systems successfully. one private lawyer expressed his frustrations. it seems like a concerted effort to be inefficient and financially irresponsible. michigan lawmakers are trying to undo their predecessors work. a bundle of bills repealing outdated laws has passed the michigan house and is headed to the state senate. cursing in front of women and children with no longer be a misdemean misdemeanor. you would be able to freely mock
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someone who refuses a challenge to a duel publicly. finally, nasa wants you to remain calm. no, not about the stock market today. about the possibility that a space rock will destroy the planet next month. nasa says it's not going to happen. in a press release titled "there is no asteroid threatening earth" the space agency addresses social media rumors. quote, there is no existing evidence that an asteroid is on a trajectory that will impact earth. in fact, not a single one of the known objects has a creditable chance of hitting our planet in the next century. you've heard the old saying that the road to hell is being paved be good intentions. tonight, that could apply to the ocean floor off the gulf coast.
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phil keating has the story. >> reporter: tires and tires as far as the diver can say. 1 to 2 million of them. a barren underwater landscape that is just ghostly. >> it is just spooky. >> reporter: they're hoisting up the tires. it is a two year nearly $2 million job to make a wrong right. they got permits to dump the used tires a mile off the shore to create an artificial reef great for coral and fish. >> it looked good on paper. >> reporter: the coral never
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game nor the schools of fish. the tons of rubber battered the healthy reef nearby. >> they're doing damage to the reef and they're harboring very little marine growth. >> reporter: shredding and recycling tires today is a booming business, but back in the 70s tire recycling didn't exist. the only options were landfills, which is what this good intention became. a used tire landfill under the sea. >> there's a lot of finger pointing has to who is responsible and who should be taking care of it. >> reporter: once back on land, the tires will be burned at a power plant incinerator to produce green energy. four long decades later, these old tires will finally do some environmental good. phil keating, fox news. former virginia governor bob
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mcdonald will get to stay out of jail while the u.s. supreme court decides what to do with his appeal. chief justice john roberts has stayed a lower court ruling that mcdonald would have to report to prison as early as tuesday. two canadian firms have filed a $578 million class-action lawsuit against the owners of ashley madison following a data breach. the website operators are offering a half million dollar reward to information leading to the arrest of the people who broke into their computers. a stomach churning day on wall street. you can blame
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china is at the end of a major bubble that has been building for decades. so is the u.s. and most of the world. when these bubbles burst, they don't correct 10% or 20% and move on. they burst. >> china hasn't gone into depression. they've cut their growth rate from 2 to 5. the u.s. economy is strong. banks are strong. this is not '08. this is not 2000. this is not 1987. this is a normal correction in a secular bull market. i would not be fearful. >> what i would encourage people to evaluate is the ongoing resilience of the u.s. economy. >> all in reaction to a busy roller coaster on wall street today. as you take a look at the numbers, the dow finished the day down 588 points, but take a look at the ride investors took today. there was a lot of concern over the past five days. this has been quite a ride as
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well. you can see the drop over the past foive days with a big drop in early trading on monday. but as you look at the dow over 20 years, it is important to keep that in perspective as well. there you see some of the dips it took, especially in 2008. what happens this? the state of the u.s. economy and how china fits? let's bring in our panel. steve hayes, juan williams, and charles krauthammer. steve? >> the perspective you offered is very important. when you look at the long-term, this is a really bad day, but it's a bad day. but i think if you plot this out going forward, there's a lot of reason to believe that we are going to be seeing volatility now for an extended period here. if the market continues to build, as most analysts suggest that it will, that it will come in fits and starts, not on a straight line trajectory we've
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seen since 2008 and that's because of the underlying economic problems. you've heard from the former head of the new york stock exchange the scaling back of china's growth from 8% to 5%. that's a huge change. it's not just the change itself that's going to matter. the problem is when the chinese government tries to mitigate the effects of that change, which we saw here and basically was an accelerant on the preexisting problems. that, i think, is cause for great concern. it's hard to see if things do continue to improve, them continue to improve in a dramatic way. >> juan, a lot of people are anxiously looking at the asian markets tonight to see if there is any further dropoff because china and where they stand is really at the heart of this. >> there's no doubt about it. it has a ripple effect across the globe. you can about russia, for example. they were looking to do more business with china.
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obviously, the chinese are not going to be in position to do much of that. china is in africa. china is in brazil. >> a lot of emerging markets. >> the emerging markets are going to take a hit as well. they're the new frontier in terms of investment. overall, i think he is on to something here. the essential points of the american market remain strong. the question is, what happens with the global atmosphere. >> charles? >> well, if i knew which of the two sound bytes were right, the doomsday scenario or everything is okay scenario, i would have arrived in a helicopter for the show this afternoon. look, there are obviously two factors. number one is china. the growth is slowing. the government has lost control of its own markets. the chinese had a huge bubble in
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their stock market. they are still higher than they were a year ago. they've wiped out all the gains of this year, but what they're getting is an enormous correction, but the second factor is this. th it's the fed. the fed said it would raise rates. and of last week, the market had evaluated it as about a 50% chance. right now, a week later, the odds the market has calculated is a three to one chance against the feds raising rates. we've had a terrible fiscal policy, high taxes, high regulation. so it was the fed that prodded along the recovery. it has to stop that at some point or other otherwise you'll really going to get a bubble and the question is when. it's not going to raise rates because if it did, i think, the
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market collapse would continue. >> you saw that amazing ticking of the dow today in different points throughout the day that made for some interesting moments. speaking of the fed, the atlanta fed came out and said currently developments such as the depreciation of the dollar are common factors in dictating the pace of growth. i expect the normalization of money policy, that is interest rates, to begin this year. the implication being an environment of rather low rates for quite sometime, saying it is all on track. don't worry. this is just a blip. what do you say? >> it's not september. perhaps december, but that's how i would interpret what he just said. >> the former treasury secretary said with current spreads
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significantly increasing, emerging markets emerging, the u.s. stock market in a correction, widespread concerns about liquidity, markets are self-correcting any euphoria or overconfidence. the fed does not have to do the job. a rate increase will tip some part of the financial system into crisis with unpredictable and dangerous consequences. steve, isn't this the bottom line? it's real the fed and how active they've been in this economy and how propped up, perhaps, this market, this economy is, by federal money policy. >> no question. the flip side of that problem is fiscal policy. it is rather incredible when you're watching this unfold today, you have josh ernest talking about the need to have further federal spending. it's exactly that kind of fiscal policy that's gotten us into the trouble we've gotten.
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if josh ernest was right about the strength and the resilience of the u.s. economy, the fed would have already raised rates, but they haven't because it is not that strong. >> today, "the new york times" was saying that all this talk of holding back on federal spending is what's holding the economy back. this comes from a liberal economist in "the new york times." you have republicans who are saying -- they don't talk about the economy as much as i thought they would have. but they're saying basically we need to lower taxes in order to get the economy going and get the fed out of the deal. hillary clinton meanwhile has come out and said what we need to do is increase the taxes on capital gains for people who are short-term traders and encourage long-term investments. >> you have the whole spectrum,
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charles. you have people saying there's going to be a quantitative easing. >> if the fed announced tonight at midnight it's not raising rates, you'd have a really good day on the stock market tomorrow. >> and that's the question, whether that's a good thing in the long term or not. up next, is joe
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secretary clinton is lining up staff including president obama's support
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team. she is the overwhelming choice of democrats. is there any chance you are going to challenge her? >> yes. there is a chance. >> the president has indicated his view that the decision he made, i guess, seven years ago now, to add joe biden to the ticket as his running mate was the smartest decision he has ever made in politics. can you make the case that there is probably no one in american politics today who has a better understanding of exactly of what is required to mount a successful national presidential campaign. >> well, josh ernest today at the white house saying different ways, different times, but reiterating that the president has a lot of confidence in joe biden and he was asked about the possibility that joe biden is getting in this race. meantime, cbs news is reporting of the 770 top fundraisers to the obama team at the beginning, only 51 so far have committed to hillary clinton. and then there is this from "the washington post tonight. major democratic fundraisers have been invited to meet with vice president joe
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biden at his residence at the u.s. naval observatory after labor day, part of a series of conversations he is having with senior party leaders as he contemplates jumping into the 2016 race. we're back with the panel. the stars seem to be aligning here, juan. >> i really am surprised, brit. i didn't see this coming. i don't know if it is psychological he is still grieving and he feels like this is his last shot, a guy in his 70's and thinking what is my legacy going forward? but it does strike me that the most important thing i heard today was from josh earnst when josh earnst said the president might issue an endorsement. well, wow, imagine if the president endorses joe biden, elizabeth warren endorses joe biden. then you have a tremendously dynamic situation on the democratic side. now, short of that, let me just say i don't see joe biden getting in and beating hillary clinton. he would damage bernie sanders to some extent. does he get to the left of
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hillary clinton like elizabeth warren? >> part of that equation has to do with this meeting between joe biden and elizabeth warren that happened over the weekend. a lot of talk what was said and what was not said. there is is some talk that joe biden would pledge if he gets in to be a one term president, thereby possibly asking elizabeth warren to be his running mate and opening othe door for her for a nomination in the second part. steve. do you buy that? >> that is the point, right? that's the point of all of this. what we are watching is a carefully orchestrated campaign conduct conducted by joe biden and his advisors to gim a potential run. that doesn'ts inly mean he ends up running. we know for sure that he wants us to believe that he is going to run. i think this development with elizabeth warren over the weekend is interesting. it shows how central she has become to democrat party politics. look, you nobody i have talked to in democratic
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party circles can say one way or another joe biden is going to run, joe biden is not going to run. it's clear what might have been idol speculation back in january when he was talking to george stephanopoulos back in january has become serious. no reason he should not understake that when you look how vulnerable hillary clinton is. >> we have talked about the polls. obviously this is a time where joe biden has not run. honest and trustworthy numbers, hillary clinton is upside down in those numbers. joe biden is 58, 34. he is not in the race. he hasn't been attacked. but it's a different scenario. and he is -- he comes off as authentic to a lot of democrats who may be looking alternative to both bernie sanders and hillary clinton. >> if you are a democrat in a panic over hillary, her problems, her negatives, her honesty quosht and you see the continuation of the
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scandal going indefinitely. her fate is not in her hands. it's in the hands of the fbi judges and ininvestigative committees, you are the perfect alternative. now, there are two elements here. the first, that was a pretty broad hint from josh ernst that the president is tilting towards biden. he says i can't think of anyone else in the country, anyone else like hillary who could run a better campaign? >> let me interrupt for one second. we also talked about the president saying a few weeks agging how he could win a third term suggesting that maybe someone close to him should carry the torch. >> this is 1988. reagan handing over a torch to vice president bush, which is exactly what the scenario would be. who would be the best person he would like it entrust with his had legacy? but, second, the perfect play for biden is not elizabeth warren's endorsement but that he announces. he will have her on the ticket and he will be a one-term president. he has an age issue which is
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if he were sworn in on inauguration day he would be the oldest president by five years. with warren, and if you announce you are going to be a one termer, nobody is going to want to elect you. if you have you as your heir, he gets the entire base, the liberals have a vision of a 12-year rule, it would work perfectly for them. >> we will follow it that's it for the panel. see another look back at o
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finally tonight, we saw bad lip readings version of the debate that went viral. here is another look back that takes a much younger view. >> >> gentlemen, is there anyone on stage who is unwilling tonight to pledge your support to the eventual nominee of the republican party? [cheers and applause] >> mr. trump? [crowd booing] >> you can't say tonight? >> i you cannot. my father was a bartender. >> my dad worked with the ice cream. >> my father was a fireman. >> my father liked cuba. >> you have to end obamacare. >> get rid of obamacare. >> repeal obamacare. >> and i >> it is tuesday august 25th. a fox news alert. one day after being slammed with debris indy car driver justin wilson died leaving racers
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devastated. >> we will all be back competing. >> new information about the safety of the open cockpits. >> hillary clinton or joe biden. a secret meeting fuelling speculations about president obama's pick to succeed him. a telling response from the white house. >> survival story a 10-year-old found after spending more than a day in the wilderness all alone. how "fox & friends first" starts now. >> good morning to you. you are watching "fox & friends first" on this tuesday. i am heather childers. >> i am ainsley earhardt. a racetrack tragedy indy car driver justin wilson drives after being hit in the head with debris during the horrific crash. >> his death raising concerns about the safety of the course.
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>> good morning, kelly. >> good morning. indy car drivers say they loved him and this tragedy is raising more questions about what can be done to increase safety on the track. during the pocono raceway justin wilson was hit in the head by debris of another car. his car then veered to the wall. he was air lifted by helicopter to a hospital in hal len down where he died last night. his wife and family were at the bedside when he passed. his younger brother stefan tweeted, can't even begin to krieb the loss i feel right now, he was my brother, my best friend, my role model, my mentor. he was a champion. indy car drivers are deeply saddened. >> just want to offer our condolences. he was a