Transcripts For FBC Cavuto Coast To Coast 20171101

Would seem a leap. Stuart not true you in live in california, connecticut, massachusetts, illinois, you would pay more. Neil if you lift it up to a million, from 450. I havent checked out the math in reverse. That is pitch they make presumably to the president tomorrow. I dont know. Seems like an uphill fight. Stuart you have a full news day, havent you . Neil lots going on. Thank you, my friend, very, very much. Were on top of that. What it could mean, to stuarts points, were off earlier highs concerns that a top rate remains in effect that the rich could end up paying more. When the rich are unhappy they have a way of conveying that. On to more pressing life and death developments, the nypd is looking what happened in Lower Manhattan and why. Says the suspect took from isis, pretty much rules of thumb you do in an attack like this. Tracee carrasco with more in Lower Manhattan. What can you tell us . Reporter good afternoon, neil, we wrapped up the up tate from the nypd, the fdny, new york mayor bill de blasio and Governor Cuomo. Calling this an act of a coward. We are learning more of victims. 20 of them in total. Six of them died on the scene. Two of them were taken to the hospital where they were proannounced dead. Five from argentina. Two from america, five from belgium. Five are still hospitalized. The investigation is still in its infancy stages. Right now the attack by 29yearold sayfullo Sayfullo Saipov, he said this was a wellthought out attack. Based on investigation overnight, it appears mr. Say say positive was planning this over the weeks, did in the name of isis along with items covered at scene with notes that further indicate that. He appears to have followed almost exactly to a t, the instructions that isis has put out in its social Media Channels before, with instructions to followers how to carry out such an attack. Reporter as far as saipov goes, here is what we know about the suspect, in critical condition, expected to survive after being shot in the abdomen by the police. He was holding fake guns shouting allahu akbar , he had to notes written in arabic, pledging loyalty to isis. They are found near and in the truck. He had a number of knives. Saipov had a florida drivers license. He was living in new jersey. I came to the u. S. Legally from uzbekistan in 2010, Diversity Visa Program, that offer as lottery for countries with few immigrants in america. He was uber driver for six months, taking 1400 trips. Last night authorities raided saipovs new jersey home, 20 miles away from the scene. They raid ad mosque he attended in patterson as well. That mosque was reportedly under nypd surveillance since 2005, as part of a study of possible locations, quote for budding terrorist conspiracies. That is according to north new jersey. Com. Here at the scene, investigators have been combing through that rented home depot pickup truck that saipov used to carry out the attack. They have been looking through it all night and all morning. Meanwhile saipovs white Toyota Sienna with florida plates was searched by the police in the parking lot of passaic, new jersey home depot where he rented the truck at 2 00 p. M. , an hour before the attack. A lot of information still coming in. Authorities are trying to sort it out. Many questions here but they have interviewed this suspect. That is what we know so far. Neil thank you very much, Tracee Carrasco in Lower Manhattan this happens at a time when new yorkers are getting ready for the holidays. The city swells with tourists and some that just come in for christmas shows and the like. Could this affect that, and do americans get leery of going into any urban area, this happens in the United States, something we think only happened in places like europe, what have you . Lets get the read on this from former chicago superintendent of police, gary mccarthy. Gary, how do you play this . A lot of people say, i dont know if i want to go into crowded area, particularly new york. What do you do . Well, first of all we have to live our lives. The first way to stop it, first recognize what the problem is and we in this country dont want to recognize the fact were at war. You know, years ago i went to israel and i got to tell you there things are completely different. As a matter of fact, it was five years i went and right before i got there, the week before, is when terrorists started running people over at bus stops. The week that i got there, there were already bollards at those bus stops. The way to prevent this through intel and intelligence sharing. It is being reported, im not positive what the facts are yet, obviously they will still come out for quite some time. The mosque this man attended was sus spermia couple years ago. The nypd was being attacked with program they were using with the program they were using to prevent these incidents from happening. We have to change our mindsets but we also have to live our lives. I was at the world trade center, mayor giuliani said we would live our lives. He came to the bronx and threw out the first pitch. Everybody was nervous. We went on. We were not going to show that fear. Neil that is not a bad idea, as youre speaking the president is responding, moving to terminate the diversity immigration lottery following the new york attack this is how saipov got into this country, i should say. President wants to work with congress to terminate the Diversity Lottery Program entirely, brought other people in the United States was point of the contact for 23 others. What do you make of that . You know, neil, im more focused what it is we can do here rather than preventing people from getting here. There is issue with our borders and illegal individual coming in, committing crime, getting deported, coming back. As far as terrorism goes we have to look at it a little bit different. We have to examine everything we can do to prevent these incidents from happening. It will come out it could have been prevented like every other incident. We were monitoring this guy for years. Monitoring the mosque he attended for years. We were being accused profiling too at the same time. Neil right. So i hope we become as vigilant in protecting rights of those crime victims as we are individuals who we might want to investigate because they may be involved in some sort of nefarious activities but the one that always comes to mind that san bernardino. When the stories came out neighbors of those two individuals that shot all those folks, saw large amounts of weapons coming in and out of the house, but they didnt report it because they were afraid they would be accused profiling f the ira was blowing up buildings in manhattan i expect we would look at the ira. We have to stop accusing ourselves of profiling when were investigating. Neil all right. Wellsaid, gary mccarthy, former Chicago Police superintendent. Just to bring you uptodate from the white house. The president is moving to terminate this diversity immigration Lottery Program following this new york city attack. If were to believe latest intelligence on Sayfullo Saipov he came into this country in 2010 through that program. Others dispute that. Whatever the case, it is reexamined the president wants the whole thing deepsixed. Act for america founder is here with us. What do you know about the program and other Material Information that the attacker was looking to bring in quite a few others with him after he arrived, up to a couple dozen others . What do you make of that . Well, this is great news that the president is going to move forward to stop this Diversity Visa Program, because the Diversity Visa Program has been a danger to our country for years. Even the state department issued a report back in 2007, 10 years ago discussing vulnerability in that program and why it is now a National Security threat to the country. When you look at the countries that where people can apply to get this, into this visa lottery, which is 50,000 applicants we accept every year, you have countries like yemen, algeria, syria, lennon, iraq, libya . Why do we have any reason, considering the war were in, against islamic terrorism, were allowing people from these countries to come to the United States . What also concerned the state department there is no way we can verify the background or reality of the names of the people who are applying. We can not verify their Work Experience. We can not verify their education. It has very low standards. The people who are applying all they need to have a High School Diploma and two Years Experience on whatever job. No professionals. There is no way we can verify anything about their background. Neil so brigitte, what do we do . When we surveil a mosque, as we were doing in this case, what are we doing with that . Where does that go outside of, there is trouble here or could be hotbed of activity here . Are we hands off, what happens . You know what they say, where there is smoke, there is fire. This mosque has been under the surveillance of the fbi since 2005. 12 years so far. So, you know, where there is smoke there is fire. They know there are terrorists and terrorist sympathizers operating out of that mosque. This is why the fbi was monitoring it. Lets get real. Because of all the leftists and progressives in this country, fighting fbi and filing our government from really infiltrating the mosque and getting intelligence, vetting themselves in the mosque, no, were not supposed to do that, that is not politically correct. Now we rely on cameras outside on the street to monitor what is happening in the mosque. That is not intelligence. To get real intelligence, you have to embed in the mosque, understand their teachings, understand backgrounds, become friends with families outside the mosque. I was watching interviews, some people from the mosque, we really dont remember him. Nobody has seen him at mosque before. Baloney. I come from small middleeastern community. Everybody knows everything about everybody in the community. People no hoe they are but theyre not coming forward. Neil brigitte thank you very much terrorism analyst. Sadly a lot of things she was forecast having come true. Were monitoring this again what theyre looking at here is exactly how it is for years Sayfullo Saipov did not get beyond peoples radar even though intelligence officials had him on their radar, and they were quite worried, quite concerned. Meanwhile the dow is up 62. 5 points. It is bouncing back from some of the lows here. What had them a little jittery the talk, as feared, i should say feared by some, the top rate will remain 39. 6 , for billionaires. No way to make that official. That is through the rumor mill. They are in the middle of tradeoffs to, pay for that, to entice democratic votes, what Small Business tax cuts could go in wheeling and dealing detailed to the president tomorrow morning before this is all officially unveiled, a day later than scheduled, but that 39. 6 rate will stay. The one rich community, even allowing for losing state and local Tax Deductions they will still end up paying about the same because the rate itself will move higher to a million and over from roughly 450, to 480,000 right now when it kicks in. Hard to say this much is not, everyone is confused. Well have more after this. Paying less for my medicare . Im open to that. Lower premiums . Extra benefits . Its open enrollment. Time to open the laptop. And compare Medicare Health plans. Why . Because plans change, so can your health needs. So, be openminded. Look at everythinglike Prescription Drug plans. And Medicare Advantage plans from private insurers. Use the tools at medicare. Gov. Or call 1800medicare. Open to Something Better . Start today. Our recent online sales success seems a little. Strange . Nk na. Ever since we switched to fedex ground business has been great. Theyre affordable and fast. Maybe too affordable and fast. What if. 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Neil want to again clarify as weve been saying here that Sayfullo Saipov, attacker yesterday in new york city, was on federal agents radar for number of years. Not only his mosque, he specifically, abc news reporting that he was interviewed back in 2015 by federal agents and department of Homeland Security Investigations Unit about possible ties to suspected terrorists but agents at the time didnt have enough evidence to open a case on him. And, Law Enforcement officials tell abc news at the time, that was that. He fell through the cracks. All right, in the meantime were keeping track of this back and forth on this tax measure, the announcement delayed until tomorrow. The gop tax bill rollout will begin in ernest then but already some of the whisperings there will be a fourth individual bracket at 39. 6 , where the highest level is now. To Virginia Republican congressman, House Freedom caucus member dave brat. What he makes of that . Congressman . Neil, in general republicans want rate reductions down across the board. Theyre haggling how we pass the bill through. We lost a lot of new yorkers and maybe california over the salt piece, state and local tax piece. Right. Theyre cobbling votes together, so im sure theyre haggling on that piece. In general we want to give a tax rate cut to everybody, and that is progrowth. I hate to see that go, but i dont know what the room looks like on the votes. Neil apparently what theyre saying, i talked to this one person on, that person could be wrong, seems not as wellconnected as you, but a smarty pants in his own right, say if you lifted the top rate to those making a million or more, that would compensate for even those who would lose that local and state tax deduction, that gap between roughly a little under half a million to a million, would compensate for that, whatever the fact is, with rate million and over, remaining at 39. 6 . I dont know that explains it but what do you make of that . Yeah. There is something to that argument. We also heard, these are rumors, but theyre floating around, that theyre going to split up the state and local. Neil right. You may keep the local deduction, that is substantial n our area that is 1 on the, on your home. Neil in other words property tax paying on your home versus all the other taxes . Right. Thats right. So that will help, and so we were thinking, it was about 1. 5 trillion pay for, right, that that the loss of that deduction would result in. So that, adding the local back in might cost you about 500 billion. And so that is important. Because then you cant lower the tax rates as much for the middle class tax cut. So there is a bunch of bumper cars and were starting to sort that out. Neil congressman, you sound a little disappointed . Good news the framework is still intact, right . Were talking about 20 corporate rate. That may be phased in too. That is part of the new information. Neil were hearing the same thing, it would be phased in. Thats right. And then on the s corp side, were still at 25 . That is still good news. There is probably 3070 split. Your business expenses get lower rate. Then compensation, they dont want people gaming it, so that is the 70 . That wont get that rate. That might have to stay at individual rate. But the basic framework is intact. Repatriation isnt as large as i thought it was going to be. I had a trillion in mind in real savings. Were hearing 250 billion comes back. That pays for moving toward the territorial system, which is a win. It makes us competitive and levels the Playing Field fence the rest of the world. Neil what youre saying, congressman, while not exactly your cup of tea, it is better than nothing. Oh, it is way better than nothing. Im still fairly optimistic, right . I mean neil so as it stands now how can you go yea or nay on something you havent formally seen. Right. Neil as things stand right now you would not be a no vote. No. Thats right. Im a yes. Neil Freedom Caucus, that you guys all balk in unison here . No. On this one they shouldnt be worried about the Freedom Caucus. This is the salt, even seaboard, hightaxed states. Most of the Freedom Caucus i know is yes. We want to see lower tax rates. Weve been bullish since the beginning on this i taught economics 20 years. This is what were waiting for, the kids i taught for 20 years, were not doing too well on the spending side of the equation up here. That is the swamp. It is hard to cut any spending. With straight face, only thing i can offer kids. Pop the economy. Get it moving. You get yourself skilled up. That is on you. I offer you a pop in 10year window. We get nick growth. You set up you and your new family on progrowth, probusiness trajectory. That is my optimistic hope what were doing. Neil real quickly, sir, sorry to be remiss, if i didnt mention former speaker john boehner. Had a very saltly interview with politico he lambasted a lot of conservative renegades. He spared you personally. Yeah. Neil he thinks some of the rabid on the right are nuts. What do you think of that . I like boehner. He is always salty. He is funny. He has funny jokes. So i think he is a little frustrated but on the right this, terminology is so far off. The Freedom Caucus is the group that votes for the republican creed and votes for republican platform. Were not right. We keep our promises. When you say repeal, look up repeal in websters, were going to repeal obamacare. When you are going to lower taxes were going to lower tax. When you deregulate the economy. You want national defense. Judeochristian values, back in your k12 education that is us. He is talking about inside the beltway. I think we had elections on that. It wasnt just trump. That was bernie through trump the middle class hasnt had wage increase in 30 years. Theyre ticked off at the swamp. Immigration, i heard prior story. No one is listening to the American People on that. That is a huge issue. House and senate still havent moved anything consequential through on i will migation reform, shutting down the border, making the United States safe. That was a biggie. We need way more action up here. People are not happy. They want to see some moves. Neil congressman, thank you very much for taking the time. You bet. Neil sir, very good talking to you, dave brat, of the fine state of virginia. Great. Neil the president is meeting with his cabinet right now. You know the drill after he does there is usually a spray of that meeting. Tape comes out and hear what he is saying apparently talking about the fed choice he will say about tomorrow. Had kind things to say about janet yellen, present chairman. Didnt indicate who that person would be whether it is janet yellen. Indications it will be jerome powell, frontrunner of the job. Well hear update about what he had to say about local officials in new york and what they had to say about him politicizing these developments of the terror attack in new york. The back and forth continues. Back in a moment. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Neil all right the president meeting with his cabinet members, the chance to get his thoughts on Everything Else going on here, as well as what is going on in new york and Lower Manhattan, the investigation into what prompted all of that, and the back and forth over release of tax cut details tomorrow. Lets listen in. Thank you very much. Today we mourn the horrifying terrorist attack in new york city, just blocks away from the site of the world trade center. A man drove a truck into a pedestrian bike path and murdered eight people and injured very, very seriously at least 11 more. All of america is praying and grieving for the families who lost their precious loved ones, horrible act. Our hearts break for them. We pledge to renew our resolve in their memory. My administration is coordinating closely between federal and local officials to investigate the attack, and so further investigate this animal who did the attacking, and updates will be provided as available. I am today starting the process of terminating the Diversity Lottery Program. Im going to ask congress to immediately initiate work to get rid of this program, diversity lottery. Diversity lottery. Sounds nice. It is not nice. It is not good. It hasnt been food. Weve been against it. We want to work immediately with congress on the Diversity Lottery Program on terminating it, getting rid of it. We want a meritbased program where people come into our country based on merit. We want to get rid of chained migration. This man that came in, or whatever you want to call him, brought in with him other people, and he was, he was the point of contact, the primary point of contact for, and this is preliminarily, 23 people that came in, or potentially came in with him. That is not acceptable. So we want to get rid of chain migration, and which wanted to do that for a long time. And ive been wanting to do it for a long time, and well be asking congress to start working on it immediately. There are bills already about ending chain migration. And we have a lot of good bills in there. That they are being stopped by democrats because theyre obstructionists and honestly, they dont want to do what is right for our country. We need strength, we need resolve. We have to stop it. So well get rid of this Lottery Program as soon as possible. He came in through the Diversity Program as you know, and were going to stop that. Were going to, as quickly as possible, get rid of chain migration and go to a meritbased civil. Terrorists are constantly seeking to strike our nation and it will require unflynn offing devotion to the Law Enforcement, Homeland Security and intelligence professionals to keep america safe. We will take all necessary steps to protect our people, and our communities, and to protect our nation as a whole. We have to get much tougher. We have to get much smarter, and we have to get much less politicallycorrect. Were so politically correct that were afraid to do anything and that is not only our country, that is other countries too, that are having very similar problems, and we have to get tough, we have to get smart. We have to do what is right to protect our citizens. We will never waiver in the defense of our beloved country, ever. And well never, ever, forget the beautiful lives that have been taken from us. That was a horrible event. We have to stop it and we have to stop it cold. We also have to come up with punishment that is far quicker and far greater than the punishment these animals are getting right now. They will go through court for years. At the end they will be, who knows what happens. We need quick justice and we need strong justice. Much quicker and much stronger than we have right now. Because what we have right now is a joke and its a laughingstock. And no wonder so much of this stuff takes place. And i think i can speak for plenty of other countries too that are in the same situation. So, with that being said, we will be starting our Cabinet Meeting today. It will be a discussion that will focus on vital issues of tax cuts, and tax reform. It will be the largest tax cuts in the history of our country by far. The house is doing very well. They have taken an extra few hours, which will go in tomorrow, into tomorrow and they will be announcing, and probably be standing with them, we leave as you know for asia. Were leaving on friday morning, so i will be standing with them sometime tomorrow, well be announcing massive tax cuts and reform. Not just tax cuts. It is tax cuts which to me is the most important but it will be tax cuts and reform. We now had two straight quarters of 3 or more Economic Growth of gdp but our economy and our country can not take off the way it really should, so it is really, really competitive with the rest of the world unless we get the kind of tax cuts for our companies, and our middle class, our workers, unless we get the jobs we need. It cant really take off until we get the tax cuts and reform passed. This week the house ways and Means Committee will unveil a historic tax plan, that will create new jobs, higher wages, which hasnt happened in many years. Now it is starting to happen, im happy to tell you, many, many years. People making less money today, than they made 20 years ago. You heard it many times before. But it will lead to tremendous prosperity for american families, communities, and also for our jobproducing businesses at center of our plan is tax cuts for working americans. We will reduce tax rates, increase the amount of income that is taxed at zero, and increase the child tax credit, which is very person to families. Well make the tax code simple and fair so the vast majority of americans condition file their taxes on a single sheet of paper. We will be simplifying, it will be called simplification, our tax code. We will restore americas Competitive Edge by lowering taxes on americas businesses, for the first time in more than 30 years, and it will a historic cut. Right now, other countries are so far below us, and then when you wonder, see all the companies, leaving one after another, they leave, that is not going to be happening. I must tell you, i have stopped at even before this, but were going to be stopping it in full. People are coming back. Well be announcing very shortly possibly, right after i get back, a Major Company that is moving back into the United States. It will be a major name. People are going to be very surprised, especially the country from which theyre leaving will be surprised. Under our plan, well go from being one of the highest taxed nations in the world to one of the low evident, meaning more lowest, meaning more jobs, more factories, more opportunities right here in america where we want them. We will reduce taxes for businesses of all sizes. I must add that were also negotiating right now, we have my full team here, tremendously different trade deals. Our trade deals are horrible. They were made by people that honestly, its sad, its very sad for our country. Every trade deal we have is disasterous. Were renegotiating our trade deals. If we have support from congress, we will make trade deals that are horror shows in very good and respectable trade deals, and trade deals good for both countries, in fact many countries. Very important that we renegotiate our trade deals with mexico as an example. We have a trade deficit of 71 billion. That is nafta. We have trade deficits with china are through the roof. Theyre so big. And so bad, that it is embarrassing saying what the number is, but you know what the number is, and i dont want to embarass anybody four days before i land in china. But it is horrible. And you look all over the world, no matter where we do trade, we have bad trade deals. Were renegotiating those deals as i said during the campaign. That will be a big factor in our growth. Finally our plan will bring back trillions of dollars from offshore, trillions. We have, in my estimation, 4 trillion that will come pouring back into our country, that will be put to work, and, will be spent by our companies, that could never get the money back, for many years. Interestingly, something, that republicans and democrats agreed on pour years, bring the money back. What is not to agree . Bring the money back, they couldnt get it done because there was lack of leadership they couldnt get it done. They all agreed it couldnt be done. They will get it done. So we will bring money back, for rebuilding america. I will be announcing tomorrow the new head of the Federal Reserve. That will take place sometime tomorrow afternoon. You will be notified as to the time. I think you will be extremely impressed by this person. As part of our push to renew our prosperity i also will be making a very historic trip on friday as i said. Our visit will take to us japan, south korea, china, vietnam, the philippines. You remember the philippines, last trip made by the president , that turned out to be not so good. Never got quite it land. We will host meetings with World Leaders across the the indopacific region. I look forward to it. Well meet a lot of president s and leaders of countries that have been friends and become very good friends of mine. We have great trade relationships other than the fact we are right now being taken advantage of, but i think they will start changing them pretty quickly. Key administration officials, including secretary mnuchin and gary cohn will be staying back from the trip to asia to remain vigilant and making sure the tax cuts pass. So if i have any problems, i will be blaming mnuchin and cohn. [laughter]. Believe me. They will be hearing from my. We are doing very well. The house, i must tell you, coming up with a great plan. And the senate is coming up with a great plan. They will be put together. Something will come out of that, that will be think i really, really, something very special. Again, were doing senate, were doing a house, put together and then we have, our beautiful new tax cuts and reform. I think that it will be very special. Im also counting on our great Vice President , mike pence, and rest of my cabinet to continue to push for the tax cuts and reform while im away. And, theyre going to be all over the country. They will be all over the country working on it, but specifically, they will be working on the members of the house, members of the senate. We think well actually get some democrats to join news the senate because frankly, i actually think they will lose their elections, in those communities and those states because the, the people of those states and people of all states need tax cuts. Again. Were highest taxed nation, just about in the world. We need tax cuts. So with that, i, we will start our Cabinet Meeting. We have a Wonderful Group of people. We have a great cabinet. Theyre doing an incredible job. I dont think actually they have been given the credit that they deserve, but that doesnt matter quite yet. Well let you know when it is time to tell you about it. But we have done. At the border we have done a fantastic job. Weve done great with the military. Isis is being designated. Theyre being decimated. But they quickly move to other places in the world like africa and others, and were there to meet them. This has never happened. We have done more to annihilate isis than eight years of the previous administration. So we are doing a real job. Were actually making tremendous strides in afghanistan also. I think you see whats happening. You see whats happening. So, weve done a largely, really a job that has been very, very wellrespected by many. One of the things that has happened, that nobody is paying attention to, but you will see it this week, our judges, federal judges. Not only justice gorsuch, who is a, he is doing fantastically on the Supreme Court but we have many judges that are being approved, at the district level, Federal District judges. And court of appeals judges. Well have at this moment, well be up to fairly soon, approval of 145 federal judges. District, and court of appeals, about 17 at this moment. So we will have a big percentage of the court, will be changed by this administration over a very short period of time. I dont believe, other than perhaps when they started the whole process, i dont believe anybody has come close. So well have 145, and that number will be increasing with time, 145 District Court judges, well have 17 court of appeals judges and i must tell you the wall street journal gave us great reviews on that, really fantastic reviews. I think it is a important element should be pointed out because a lot of people dont know it. So again tomorrow is a big announcement and well have another announcement having to do with the tax cuts. That will be out tomorrow, pretty early. And i appreciate it. And i will see many of you on the trip to asia. Thank you very much. Thank you. Mr. President , mr. President , do you want the assailant from new york sent to gitmo . I would certainly consider that. Reporter are you considering that now, sir . I would certainly consider that, i send him to gitmo. I would certainly consider that. Reporter how did the Diversity Program fit into his plot . They say he came through the program. Well see. Were looking at it. They say he came in. I dont want, i want first, simple, what were demanding is meritbased immigration. We want people that are going to help our country. We want people that are going to keep our country safe. We dont want lotteries where the wrong people are in the lotteries, and guess what, who are the suckers that get those people . We want a meritbased system. And we do not want chain migrations where somebody like him, ultimately will be allowed to bring in, many, many members of his family. Thank you very much. Reporter mr. President , do you believe any members about his family represent a threat . Do you believe any of his members of his family represent a threat to the country . Think could. They certainly could. Reporter do you have intelligence to that effect, sir . Do you have intelligence to that effect . Thank you, very much. Thank you very much. [shouting questions] thanks, everyone. Neil you have been listening to the president there. You hear a lot of talk about this Diversity Program. It was established some years back to allow more to take advantage of lottery basis, to come into this country, and thinking is that Sayfullo Saipov, the man came through this immigration lottery and was working to get up it to a couple dozen others. We dont know if they were family, friend or others into a mix. The president says that program should end. He says he has isis across the run across the globe. As we know mr. Saipov was inspired by isis, taking cues from isis and imitating the playbook of isis. The fact of the matter is, no matter where isis is, whether it is quashed in areas of the middle east, it is very act live and influential, in former attack in manhattan. A former cia analyst is here. What do you think . I think you touched on a few good points there, and what is really critical, you heard this out of the press conference with nypd earlier, this individual underwent process of domestic radicalization, he was most likely radicalized, facts are coming out, online, exposed to jihadist content on platforms like facebook, twitter, google. Interestingly you have those companies on capitol hill this week talking about what is going to be done on problematic content, not just from the russians but extremist actors as well . I think were seeing sort of the online element of this came into play here. We dont know the specifics. The suspect, the attacker here, is alive. So were going to get a lot of more information about his radicalization process. That is what makes this case different than some of the previous ones that weve seen, because we actually have the fbi and Law Enforcement questioning him as we sit here speaking about it. Neil you know, there are a number of reports, include one from abc news, recently as of 2015 saipov was on intelligence radar, Homeland Security, in fact they talked to him, but there wasnt enough to go much further. I guess it is easy to play monday morning quarterback but how many other times does this sort of thing happen, people are slipping through the cracks even as we speak . Sure, there have been reports that he was on Law Enforcements radar. They were aware of him and may have in fact spoke to him. He was not under or is subject of an investigation. So again, without further information, what that suggests to me is perhaps he was, sort of the on the periphery of other investigations of people who were of greater scrutiny and focus. Obviously at end of the day it become as resource issue. Fbi, nypd, they are the top class what they do but they have the largest numbers of cases that theyre looking at. It eights resource issue. One of issues, cracking down on content online is funding for Law Enforcement to do their job. I will add in this particular case a lot coming out about exposure to content on line and radicalizing quickly. That is something the fbi focused on, this sort of, the time, the flash to bang time, time of exposure to this content and time of the act is becoming shorter. My organization, counterextremism project, weve been pressuring Tech Companies to get the accounts off their platforms, this content off their platform. There is technology able to do it. They can do it. They should be doing more of it. This is something we continue to see. Isis wants people in places likes new york city and places like brussels to do lowsophistication attacks. They dont care if the individual has training. They dont care if theyre funding attack. They care about getting message on line, getting someone to do something. Unfortunately were seeing impact of that. We saw it yesterday with the tragic event in new york. Neil thank you very much. Tara mueller, former cia military analyst. Well have more. Clearly inference here being isis might be on the run globally, but it is not on the run to doing stuff like it pulled off in new york city yesterday. Well have more after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. 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If you earn 300,000 or less income you get writeoffs for state and local income taxes. A lot of congressional aides i talked about potential compromise. Watering down, this will not be popular in a lot of places. On my twitter feed people are going nuts. That is watering down on the Small Business tax cut, known as subchapters corporations. Under the plan they want to take it down, they wanted to do the tax reduction from 39. 5 , high astride rate, bring it down to 25 . Here is what the gop leadership is talking about. Getting from gop congressional aides, who are in the meeting, discusses this. Talking about bringing the rate down to 25 for only 30 of the sort of income of these subchapter scorps. Meaning 70 of their income essentially gets taxed at regular rate at 39 . Now there could be a blended rate, Something Like 30 . But im just telling you that, that is not neil not originally as advertised . Not originally advertised. Neil a lot of watering down going on here. This is about to pay for it, right . The way it is told to me from congressional aides, to pay for a potential compromise on the salt deduction, state and local tax deduction, and to pay for the bigger Corporate Tax cut which theyre looking now, obviously to take it down from 35 neil and phase in. Not phase in. They got a lot of backlash on that. This is key. Listen, i think a lot of Small Businesses listen, there is obviously some scandals and some fudging here, what is a passthrough. You dont want to give a tax break to law firms. You want Real Companies that produce things and hire people to get this tax break. Neil right, right. If theyre going to screw Small Businesses, for, large corporations, and for the salt deduction, it is going to be a heavy lift. Im telling you. This is where it gets really interesting. I think one of the problems with the gop tax plan, like, reforming obamacare, is they had a great blueprint outline, and the administration allowed the details like this to get hammered out by congress. That is when you get this sort of crazy stuff. Neil the president has to sign on to this. The last thing they need him going off to asia, i dont like this, this, or this. That could be a nightmare. Presumably this is being worked out with Steve Mnuchin and gary cohn. Neil who are staying behind. Here what i would say. This is fairly big story. Watch subchapter s corp. S. A lot of our viewers own these Small Businesses. You may not guest the big as tax cut as advertised. Neil upper income will not get a tax cut. Not all. I would say this, neil, did nothing on individual side and they did cut Corporate Taxes and subchapter ss better than what we got now. Markets go up big time. Neil even with that the markets are still up right now. Yep. Neil thank you, buddy. When news breaks, remember he fixes it. If he it breaks. A lot more coming up, more details coming out in tax cut plan. More details about the new york suspect. The one thing about capturing this guy alive, you can talk to him, talk about his isis associations. Contrary what the president was saying, isis may be on the run globally, but this guy still well. Hi, im the internet you know whats difficult . Adulting. Hi, guys. Im back. Time to slay no,i have a long time girlfriend. You know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. . New yorkers and others who utilize our Transit System will see a lot more offices, youll see a lot more uniforms, officers on the trains, officers on the platforms. They should expect more bag checks at more stations. Neil he is right about that, certainly coming into new york, a lot of new yorkers, myself included increase police presence. New york city remains on high alert and the nypd saying it appears that the suspect who has been brought in for questioning and did survive the attack yesterday had been planning this for a number of weeks. Connell mcshane with the very, very latest from Lower Manhattan. What can you tell us . Thats one of the headlines that came out of the briefing we had with Police Officials a short time ago, this was in the planning for a long time. Theyre trying to piece together exactly what happened yesterday and why it happened . Using a number of investigatory techniques to do so. I want to show a we shot east of here of the scene such as it is today. The home depot rented white flatbed truck is still there, both doors opened after the collision with the school bus after the terror attack, it ended with the hero officer shooting the suspect Sayfullo Saipov. The truck was rented in jersey, by quarter to 3 00 across the George Washington bridge. And 3 04 p. M. Drives the flatbed to houston, chambers street, running over people in the way, killing 8. We found out 5 of those people were from argentina, 3 from germany. By 3 08, the 911 calls come. In heres what else they found out about this guy once the investigation began. Listen. Recovered in and around the vehicle were multiple knives, the two imitation pistols, one a paint ball gun, the other a crossman pellet gun that appears mr. Saipov had been planning this for a number of weeks. He did this in the name of isis and along with the other items recovered at the scene was some notes that further indicate that. He appears to have followed almost exactly to a t the instructions that isis has put out in social Media Channels before with instructions to followers on how to carry out such an attack. Reporter i think the key takeaway from Deputy Commissioner miller comments it had been planned for weeks and inspired by isis. The obvious questions, who else knew about it . Help being given, and we expect more to come. We were reminded a number of times that the investigation is still in early stages. Neil connell, thank you very much. Connell mcshane. He indicated florida the diversity immigration Lottery Program, got into the country that way, and trying to recruit family members and or friends. The president says enough is enough, its gotta go. I am today starting the process of terminating the Diversity Lottery Program. Im going to ask congress to immediately initiate work to get rid of this program. Neil to texas republican congressman brian babin. Congressman, what do you think of this program and whether now is the time to junk it, period . Its long past time to junk this program. It was introduced by none other than Chuck Schumer in 1990. This is Political Correctness run amok, getting People Killed. This program was absurd the day it was passed and signed into law. Its still absurd and more absurd now because of the trojan horse aspect of bringing someone in like this guy who ran over and killed eight people in new york. Its time to go. Anybody that puts Political Correctness and diversity ahead of National Security and the safety of american citizens ought be run out of town. Weve got get rid of this thing, im in full support of President Trump for abolishing this idiotic program. Neil senator schumer among those, he tried to scale back the program and some of its tendencies to not scrutinize those enough who take advantage of it. Furthermore, he said the president is politicizing this tragedy, what do you think . I think absolutely. I think that this whole program, ive been talking about the refugee and the immigration policies of this country for the last three years, introduced number of bills to cut them back, keep americans safe and we havent been able to get them to the floor. Weve passed the safe act. We sent it over to the senate, its sitting there. Weve got the filibuster rule which gives Chuck Schumer an eight vote veto to keep things from happening. The senate is where good bills go to die. Our Political Correctness absolutely is getting People Killed and, you know, its common sense. Americans are fed up with this kind of stuff, neil. Neil the congressman was congressman, i should say, senator schumer said he followed the president for politicizing this event. New york Governor Cuomo has also said that the president in his remarks is potentially fomenting hate. What did you think of their criticism . I think thats just pablum. I think its nonsense. This is not politicized. We got eight dead people, and a number of wounded folks. This is the largest terror attack in new york city since 9 11. The only one politicizing it, i think, are these people. The president , and a number of us here in Congress Want to keep the American People safe. And thats why we have to lets get together, not only an executive order but codify this so that future president s cant come and undo the stuff that the president is doing, plus we see activist judges who absolutely block what the president is trying to do. And you know, again, like politicians who want to have Political Correctness and diversity rather than National Security and safety for americans, i think these judges should be reined in. Neil congressman, i want to get your thoughts, the president mentioned today he has isis on the run and globally and militarily absolutely correct in saying that. But do you think it gives americans a sense of false comfort here because obviously, this attack yesterday was isis inspired. This guy was connected with isis, so that people tend to let down their guard and think all right, if isis is on the run or being decimated globally, we shouldnt worry here . We need to worry. You know isis has been defeated on the battlefield, but yet these types of people like this guy who ran over these folks yesterday in new york, they get spun up, they get energized on the computer, on the internet, and so we have to really be on the on our ps and qs, be on the lookout, be vigilant and watching for these types of people. Theyre here. Weve had outofcontrol refugee and immigration policies for years and years, like this foolish visa diversity business lottery. And it is absolutely detrimental to the American People, and weve seen what is going on in western europe, the same thing is happening here, these folks are here, weve got to stop these folks from coming in. We want people who life america to come here. We dont need to have folks coming in just because theyre from Different Countries here and there. We want folks that are going to be good citizens, who will be proud americans and be productive, love america for what it is, the freedoms and liberties that this country stand for and always has for 241 years. Neil congressman, thank you very much, good seeing you again. Brian babin from the fine state of texas. In the meantime, the suspect as we indicated is out of surgery, expected to survive. Thats a rarity in the attacks where normally the assailant is killed. Hes alive and well maybe questioned as soon as today. Manny, lets say you were the agent who had the opportunity to question him. What would you ask . First and foremost, what was his motive . Why did he do this . Apparently he was radicalized and inspired. That being said, how . Was it on the internet . Did he travel abroad . Was he contacted or was in contact with other known terrorists under investigation. Did he receive resources or training or guidance bianybody whether its inside the u. S. Or overseas. And lastly, why did he pick this target . Why didnt he pick halloween day parade in new york city was huge, target rich environment. Why did he pick the bicyclepedestrian path . Did he research it beforehand . How Much Research went into it . If we could piece this altogether, neil. Get the answers to the questions, then we could perhaps have a better profile as to what these lone attackers, how theyre getting inspired, radicalized and operate and what motiveates them and build a profile in an effort to thwart the next attack. Neil you know, saipov apparently was interviewed by federal agents at the department of Homeland Security in 2015. They didnt have enough to go on and pursue much further than that. I dont know what the details are. How does that stuff happen and what are they being looking at what they bring someone in for questioning, track down his mosque where, hes worshipping, et cetera . There are certain thresholds. There are attorney general guidelines that restrict the investigators to certain protocols. We saw similar incident in the boston bombers where the fbi had interviewed that individual twice, and yet it doesnt rise to the level of a full investigation, and thus he fell through the cracks. This might have been a similar thing. We have to remember that the fbi has close to a thousand open cases. Full cases on suspicious terrorist activity in the u. S. , and the resources that go to those cases are amazing, both in human resources, electronic resources, et cetera. That being said, they follow through every lead they have, but they are restricted by guidelines internally and externally from the Attorney Generals Office as to how to proceed to opening up a full investigation. Neil manny, thank you very much, manny gomez, former fbi agent, very good read of all things terror and nasty. In the meantime, the markets are well off highs. Not only on news of additional tax bracket for the upper income but a lot of watereddown deductions and the like that have folks wondering whether this will be all its cracked up to be, the tax cuts . I should stress, this is conjecture but buying and selling these days, of late, built on pretty much just that. After this. I was playing golf days ago. Love golf. I used to love golf. Wait, what, what happened . I was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. No. Yep. Did it help . It completely ruined my game. Well, the truth is, that advice was never meant for you. I like you. You want to show me your swing . Its too soon. Get advice thats right for you. Investment Management Services from td ameritrade. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Sometime tomorrow well be announcing massive tax cuts and reform. Not just tax cuts, its tax cuts, which to me, is the most important, but it will be tax cuts and reform. Neil all right the president talking about tomorrow will be official when the tax plan is detailed for the public. Fox Business Network can confirm there will be a fourth individual rate that stays at 39. 6 , we dont know what level it will kick in. Well told millionaires will be paying at that rate. Market are off the highs on all of this. Calling for ultimately became known as the Ronald Reagan stock market surge in a wave that few people saw coming will be our special guest on all of this on whether we could be seeing continuation of a wave here or reversing. Real clear politics cofounder tom bevin. Tom, to you gift on, this and expectations for rate cuts seemed to be getting pared down as we speak, maybe thats the nature of the beast and getting them approved. How do you think all of this is going to go . Well see. Tomorrow paul ryan and someone said is spinning the dials. Talk about phaseins, all that stuff. Despite what trump said its significantly less than a promise of massive tax reform when all is said and done, the bottom line is the gop knows theyre going to have to they need to get something done, and they will eventually get something done, i think, although it will be by the skin of their teeth and probably with the help of red state democrats in the senate. Neil i dont see, lee, maybe you do, allowing for keeping taxes high on the very rich, any democratic votes for this, certainly in the house, maybe in the senate, so all this going through hopes to try to keep democrats potentially from saying this is a boon to the rich. I dont know if its going to work, what do you think . Listen, three or four democrats are rumored to come forward and support tax reform, i think that democrats will be short side not to support it, in the polling that ive done, when you take the plan by itself, democrats are supporting it, especially the pieces about simplicity. They want to see the middle class get a tax break, the idea that 4,000 is something that resonates across voters. The fact that theyre not going to they are going to tax the extremely wealthy is something that the democrats takes a sting out of talking points, so its liable that the democrats are very, very shortsighted to obstruct here. What grounds could they do it . Unless they sound like traditional republicans. I think that they might see some support and if we dont the democrats should be concerned about 2018. American people are saying come on, guys, time to Work Together. Neil where do you see this going . Are there enough votes to support it . The army of republicans say well, its certainly better than whats out there now. The old something is better than nothing argument and there is a lot of this. Tax cuts broadly, its going to be a failure if you see anybody fit in the middle class category get a tax hike, the president tried to hedge out 401 k s, and a debate protecting the middle classs ability to get ahead here. I think ultimately the reason this was delayed is because republicans know that there are uncomfortable planks inside this tax bill right now, and i dont want it to go public just yet. And they should remember theres a lot of bad scoring they trying to stay loyal to, its notoriously wrong, what they should do is focus on a progrowth bill and see if they can make up whatever pay fors they need to through excellent growth. Neil tom, dangerous to interpret the markets swings on any one development, part of what theyre hearing what might be negotiated or pared down is the fact they dont seem to like, it we were up 100 points and now up 13 or 14. This could change in the next 2 1 2 hours and likely will, but if this is watered down, ill go back to what i raised in the beginning, isnt that better than what weve got now . And isnt that the argument the republicans are going to keep pounding . Absolutely. I mean i think thats, again, republicans need to show they can govern, that they can get something done, this was one of the Major Campaign promises, its a whole loaf, half a loaf, 10 of a loaf. They can say they got something done. Look, neil, the markets, Consumer Confidence is up, job creation is up, there is the dichotomy, the economy seems to be going along just fine and people arent as concerned with some of the drama thats going on watching the sausage being made in washington. So i think republicans are happy about that, but they do need to get something done to take to the voters in 2018. This has got to be it. They failed on Everything Else. Neil lee, the president played an important role, going to get all the details tomorrow when the house presents that package to him, what if he doesnt like a couple of features, off on a plane to asiatnext day, then what . Id be surprised if that were to happen. Unlike health care, unlike the other things, proposals that have been put forth so far, this seems to be being done in the right way. A lot of conversations, Republican Party seems to be on the same page, talking points are coming out in the right way. Seems like theyve had a lot of conversation behind closed doors, release a plan today, coming out tomorrow. Were going to have debate in the legislative floor, this is the way things happen. I would be surprised if the president contradicts anyone. And he also in recent statements saying look, while im away, pence is moving things forward. I think were going to hear from pence and pence is someone who has well partnered with the with congress so i think were going to see a successful outcome over the next two days, and promised theyre going to get something done by christmas, something we are hopeful we can get a gift in our wallets. Neil or stockings, whatever. Thank you very much. Were learning more about the suspected new york city terrorist, did you know he was an uber driver . Yeah. After this. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. 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Reporter welcome back to cavuto coasttocoast, im Nicole Petallides on the floor of the new york stock exchange, on a recordsetting day on wall street. We lost a lot of the gains, we saw the dow, nasdaq and s p hit alltime intraday highs. The nasdaq and the russell turned negative. The dow holding onto a gain of 31 points had, been up 140. The tech stocks led the way today, weve seen these names be the winner for the year 2017. Netflix up almost 60 . Tesla up 51 and facebook up 57 . Well be watching for earnings this afternoon for facebook and tesla as well, there are concerns about tesla for the Current Quarter because of the slowdown in production for the model 3. Tesla down 2. 7 . Facebook up 181. 31 and hit an alltime high. Apple an alltime high for apple today, has since pulled back. 166. 26 at the moment. Well have all the numbers on after the bell and keep a keen eye on facebook and tesla and break the news for you right here on after the bell. Neil . Neil the president is called for merit based immigration system after yesterdays terror attack. The lottery system weve had for some including letting this assailant into the country isnt going to cut it. Gerri willis has the latest on that. Reporter lots of debate. Diversity lottery and merit based immigration systems are very different as the names imply. The diversity lottery the effort to boost the number of people comes in with low levels of immigration. While a meritbased system puts the priority on admitting people with skills or investment dollars. Deeper dive, the diversity lottery that allowed new york terror suspect saipov into the u. S. Approved by congress in 1990 but didnt go into full effect until 1995. In order to qualify, applicants must have a High School Diploma or two years of Work Experience in an occupation that requires at least two years of training or experience to perform. Those who meet eligibility requirements are selected by computer lottery. The Program Allows 50,000 green cards a year. We already award several merit based visas with degrees from accredited universities, entrepreneurs with substantial investment dollars, highly skilled workers planning on spending up to six years and sponsoring companies. Now, President Trump had this to say on twitter about his support for meritbased systems. He said were fighting hard for merit based immigration, no more democrat lottery systems, we must get much tougher and smarter. This, senator Chuck Schumer helping to support problems, we will stop the craziness, he was referring to fox and friends this morning. New York Governor Andrew Cuomo responded to those tweets this way the president s tweets i think were not helpful, i dont think they were factual. I think they tended to point fingers and politicize the situation. Reporter neil, as i said at the beginning, theres going to be a big debate about this and already under. I gerri, thank you very much. And now to the aforementioned tony shaffer, good to have you. Thank you. Neil a bit of a backandforth on this program that got saipov into this country in the first place. The president wants it junked right now. Where does it stand . How likely is that . And how much did it accommodate and continues to accommodate people who can similarly wish us harm . Look, Chuck Schumer was with one of the biggest offenders. He was on a video, vince showed it to me, where he talks about defending the program in 2006 about the diversity in new york, riding around on his own bike, ironically enough. The answer is i think congress is ready to chuck this thing because it is a lottery. And the last eight years to your question about how many people have gotten in, we dont honestly know. The vetting process was absent. They give you a piece of paper, you fill it out, you selfvet and, of course, youre not going admit to having radical views or islamic extremism so its been feckless, and i think we dont know, other than there are people here like this individual who did the attack yesterday that we have to be vigilant of, and everything im hearing from the members of congress they are ready to support the president to chuck this and go to a meritbased system. Thats the wisest course of action. Neil people like jeff flake part of the original gang of 8. Come up with Immigration Reform that didnt pass the senate, didnt go anywhere in the house and ultimately failed. Part of that strategy they say at the time was to junk this entire program. They didnt. Neil it doesnt matter now. Right. Neil so now the question is how do you avoid this in the future, especially given when the president talks of isis on the run globally which it certainly, is that doesnt mean its influential at recruiting guys like this guy and will continue to . Look, the first thing is speak truth to power. For goodness say, we have to recognize that theres been flaws in the system, people should admit that, and im sorry, Chuck Schumer is wrong on trying to defend the program. Mistake, made. And im sorry, Governor Cuomo, i called it last night on the channel, neil, look, im told the nypd guys i deal with, he knew at the time. This guy was not a lone wolf and that there was a Larger Network affiliation with him. The politicians trying to defend a political position rather than accept ground truth and protect the American People is unconscionable. Weve got to stop politicizing National Security and try to make it into something it is not, and i think the honesty necessary to protect the American People is whats called for here. President trump is trying to push us rightfully in a direction, others are not. Neil well watch closely, colonel, thank you very much. Thank you, neil. Neil think of, this were in the middle of a serious recession. Some say the most serious in the post world war ii period. Its around early 80s and along comes a Market Forecaster to say i see one of the biggest bull markets in Human History about to come. They laughed at him. No one laughed afterwards. Robert prektor on what he saw then and what he sees now . A market legend here and only here, robert brechter, next. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. 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Call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. Ask your doctor about anoro. Go your own way get your first prescription free at anoro. Com. Hey hun, huh we gotta go. Come on. Grandma grandpa thanks mom. Here we are. Look, right up to here. Principal. We can help you plan for that. Neil all right, weve got the dow up about 27 points, well off earlier highs when it was up triple digits. Donald trumps pick for the Federal Reserve is going to be tomorrow. Growing indication hes going to have a busy news day tomorrow, given that announcement, then of course the details on that tax cut plan for the house ways and Means Committee. How is this all going effect after the markets . To market legend, Robert Prechter, ahead of the big, big reagan bull market but even Ronald Reagan didnt see it at the time. Mr. Prechter did, latest book, the socioeconomic theory for finances, the smarty pants who can step back and see all of this. Robert, very good to have you. Thanks for coming. Quite a few years since ive been on television. Yours has always been a quality show and i appreciate the chance for you to slide in for a couple minutes. Neil are you kidding . The honor is mine, my friend. You see things in waves, i can get into the intricacies here, but the wave weve been on here has been a nine year bull market wave from lows in march of 2009. Do you see that wave or whatever you want to call it, continuing . Well, thats why i decided to take a little risk and come on and talk to you today because my model is the practical way the market moves with waves and patiently watching this development ever since 2009 and especially since the lows of january, february, 2016. That looked like what we call wave four, in other words, one more big wave coming, that was 8,000 points ago. Over the past few months, past few weeks and especially the past few days, watching the developments, and here we are at a new alltime high, and the s p 500 has reached the upper end of trend channel going back those eight years, on the erithmatic scale, and, of course, there are technical indicators that are flashing signals as well. Neil all right, signals that tell you this is getting long in the tooth . Exactly. Now one example is the advanced decline ratio, take a 50day moving average, do you know where it sits right now . Kind of surprising, 1. 00. In other words, on the average day, the advance decline ratio over the past 50 days has seen as many stocks going down as going up. Early on in the rally in 2012, it was much better than that. Theres been a slow weakening in the upside push despite the fact as you know youve been reporting on it, the dow making new highs day after day and week after week. Neil so this is a rich market by your Technical Analysis . Well, its thinning, its thinning dramatically. Theres another really interesting setup going on. In the 1920s, european stock markets want to out between 1923 and 1928. In january 1929, the british market want to and in september 1929, the u. S. Was the lone market sitting by itself. Weve got the same thing but on a much bigger scale today. Back in 2000 the european stocks want to out. Languishing ever since. In 2007 china want to out in the stock market. Thats 10 years ago and 17 years ago and here the lone blue chip in the world, the United States stock market at a new alltime high, its reminiscent of that prior time. Neil which leads which . Youre famous for saying markets or economies dont lead markets or economies dont lead markets, were getting signs out of the eurozone that things are slowing. China, economic information that echoes that, so what are we seeing . Recently reported two quarters above 3 growth in the United States, and people are saying this is a liftoff. But as you pointed out, the economy lags the stock market, the stock market known as leading indicator, always has been, not going to top out when everybody says theres about to be a recession. It tops out when times are good and people are feeling good, and the last issue i just put out of the elliot wave theorists showed 35 charts of sentiment indicators showing either record optimism based on that measure or near record optimism based on that measure. So people say people are worried about politics or worried about north korea, but when you looked at sentiment indicators not only in the stock market but the bond market, you find record complacency or near record complacency everywhere you look. Thats a background indicator they like to see if im going to try to come out and Say Something about the market. Neil what youre saying, robert, people are ahead of themselves, a little too gidy, not enough bears out there when everyone is so bullish or piling on the market at the same time, that gives you pause. Its a little different from 1999, 2,000. Neil right. Everyone was watching Financial Television in the taverns and the doctors offices and buying penny stocks, the public was very excited about things. Thats not the case now but a different kind of complacency. What the public is doing to a record degree in the first half of 2017 is to move money out of actively managed funds into the passive index funds, so now convinced that if they put money in index funds, they can retire happy and there will be no problem. Back in the early 80s, there was five times as much money invested in money market funds as there was in mutual funds. Stock funds. Today that ratio is flipped. Five times as money as stock funds as money market funds. Neil so are we in for a crash . Im not going to i dont know exactly how its going to develop from here, but lets take a look at a longterm indicator, the 200week moving average of the percentage of bears reported by investor intelligence. Thats at a new 50 year low in the percentage of bears. The last time it was a little bit lower than this was 1966. And thats when, as you know, the markets started a 16 year sideways period in nominal terms and during that period in real terms it was going down substantially, more than 70 , the biggest decline since 1929, 32. These extremes mean something. It doesnt necessarily mean im going to come on at top of the market even though i think its a great day to be talking to you, we have new alltime highs in the averages and its a fed day. People arent paying attention to this, theyre paying taejz to the fed meeting, which is nice for me. Very meaningful looking out longterm, people say invest for the longterm . Well, the negative indicators are saying something about the longterm. You need to be cautious. Neil can you hang there . Were going to pay our bills and address our medium term and the market going. Robert prechter, of course, that period he talked about beginning 1966 to 1928, thats how long it took for the dow to first cross and then stay that long over 1,000. The dow briefly touching in at 66. Not officially closing over it and staying over it until 1982. A long period, a 16 year morass which the markets essentially did nothing. That was then, what are we looking at now . More with Robert Prechter, after this. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Neil all right, in the more than 35 years ive been fortunate enough to cover the Financial Community and market geniuses, Robert Prechter is right up there at the top. That probably embarrasses him because hes a very modest guy. Thats a quality that i dont get conflicted by, but he joins us right now, the socioeconomic theory of finance, so many bestselling books that make you think and put this in perspective. What makes robert interesting is whats going on right now is he doesnt focus individually at any of the events we obsess like the prospect for tax cuts, how much, how soon, what you have to do to pay for them, like Interest Rates and where theyre immediately going, whos going to head the Federal Reserve . He steps way, way back from that. Robert, you heard the fixation everyone has on the details of a tax plan tomorrow that this president will say is reaganesque, bigger than reagan. In the scheme of things, do they make a difference and will they make a difference to you and your Market Forecast . Well, not under socionomic theory. There is always news, is he going to do a tax cut . If so, what is it like . Is he going to replace the head of the fed . If so, which person is it going to be . Always things to talk about outside the market. I think the market contains its own messages and moves on waves of social mood. They affect the overall direction of the economy, the tone of Popular Culture and ultimately affect politics. Hes going to get elected and whether people are fighting wars or generally in a period of peace. Around the world, historically speaking its a very peaceful time, its a good indication of elevated social mood. Neil jerome powell, the runnerup, not an economist, i might point out who is the lead choice to take Janet Yellens place in the fed. Does that make any difference to you . Wouldnt to me, no, because i think the waves of social mood including markets are pushing the fed around more than the fed is pushing the markets around. That certainly was the case in 2008 when they were reacting to the bear market by doing many, many major things, unlimited credit, bailing out people and so forth, i think theyre at the mercy of the waves as much as anybody else. One thing developing and certainly the fed is grease in the wheels for the credit balloon that has been developing over the past few decades, we currently have record auto debt, record student debt, record business debt, we have record total debt. That in itself doesnt scare me per se because its been going on for decades. Why would it stop now . Whats changed in recent years is the quality of the debt. People have more money in junk bond funds in the last five years than theyve had ever. Percentage of new loans covenant light. Highest ever. And my favorite one is that in europe, you can buy junk bonds today do, they yield the big premium over u. S. Treasuries . For the first time in history, they have exactly the same yield as u. S. Treasuries. European junk bonds, you can imagine that . The complacencyy out there is something in many of the measures we havent seen before. Neil all right, now, maybe owing to both of our ages, i can remember when you and i were first talk so many decades ago, counting the cumulative debt, the federal debt in hundreds of billions of dollars but weve worried about it all this time and people said despite all the hand wringing, wed survive. What breaks it . What makes that stop happening . Positive social mood not only helps the stock market grow up and the economy expand but makes debtors and creditors feel optimistic. So the debtors feel they can pay off the debt, the creditors feel the debt paid off. Insurance fund have debt i wouldnt touch with a 10 foot pole. Theyre chasing yield and trying to get everything they can out of it. Neil im sorry does, that mean if people stop doing that, they turn their nose up and say this isnt worth it and theyll do that at the same time, youve got problems. Bear markets are, as you know, swifter than bull markets, bull markets take a long time to grind up when bear markets hit, theyre pretty swift. I think one more indicator if we could squeeze one in before our time is up they think is amazing, you probably reported on this yourself, theres an alltime low in the vix index. Neil thats the volatility index, when people feel sanguine or relieved, not worried, that can be bad, right . Well, not only is there an alltime low, which is interesting information, but theres also a record bet among large speculators that the vix will continue to go lower. Theyve got more short futures contracts on the vix than they ever had, and these people are consistently wrong at the major turns. Neil it does keep going lower . This is near an alltime low, it can go lower still. It has, thats what positive mood has done. Question is are we at an extreme . At the same time this is going on, the move index which is the vix for the bond market is also at an alltime low here in 2017. So the entire investment world outside of commodities, the stock people and the bond people are as complacent as theyve ever been in history. To me, that is one reason why i felt, all right, its worth the risk im talking to neil cavuto about. Neil what is Robert Prechter looking at right now . I think the market is registering a major peak. Now well come back in a few years and see if there was anywhere near correct, and i think were going to enter a bear market that people are going to remember for a long period of time. Its likely to be one that will make its mark on the charts. Neil all right, a bear market is a decline of 20 or so from highs. I think its going to be quite a bit larger than that. Neil what is quite a bit larger . What is quite a bit larger . Id really rather not say. I just think if you get yourself safe and get yourself in cash, you wont have to worry about it. Neil more than 20 , more than 20 would be close to 5,000 points from these levels. What are you saying, more than that . Well, we talked about going back and seeing similarities to 1966 and similarities to 1929. So i think this time its as important as those two. Neil wow, it means we have a president who often quotes the dow and the market runup since his election a lot of it buoyed by the promise of tax cuts and regulations. Are you saying he will come back to regret doing that . Exactly. Its a big mistake. Its a bad idea to tie yourself to the Dow Jones Industrial average. Its great when its going your way. When it goes against you, you have to make excuses. I think hes look, every politician takes credit for the economy when its doing well and put the blame on somebody else when it isnt going well. That is one of the things that never has a top or bottom. Its the same trend always. Political world is a whole other animal. Neil you said that you should be in cash or move into cash, explain what that means and how a prechter portfolio if you had your druthers would look . I would say the safest possible places which would mean shortterm treasuries and probably physical cash and put it in the safest institutions you can find in the world and sit back. I mean, its one thing to lose money when you are wrong, its another to watch some bull markets go by. Id rather do that and get out of a risk position in a time like this than say i am going to get a few more percent out of the market. Just to contrast with what im reading in the papers is a lot of linear extrapolation. You remember in 2000 when people saying the dow is going to go to 36,000, 40,000 and 100,000 . They completely dwarfed that in recent days, weve heard a million and thats the lowest number. Neil that is warren buffett. Of all people, warren buffett. Yeah. People are comfortable extrapolating a trend in the linear fashion usually theyre the most comfortable like the extremes. Neil if we go through a sustained bear market or market goes well off its highs and i think youre being coy here, it will be more than 20 i guess, by your liking, can the Federal Reserve do anything about that . Can authorities do anything about it . I dont think so, no. I think theyve demonstrated that in 2008, the very first Interest Rate cut was before the top of the market. Neil okay. In 2007. And the market fell anyway, and they lowered down to zero and the market fell anyway. In retrospect, they say we did all the things and stopped the market. After a 57 drop, the market would stop naturally. The market is pushing them around and the fed will take a lot of action, i dont think its going change the trend. Neil Robert Prechter, the socioeconomic theory of finance, influential figure in market history. On the verge of making market history now. The dow off its highs, up about 20 points, a fed decision, speaking of which with trish regan. Were trish were moments away from the release of the Federal Reserve latest policy statements to provide new clues in the health of u. S. Economy and timing for the feds next Interest Rate hike. Im trish regan, welcome, everyone to the Intelligence Report on this very important as the vin toes investors wait on fed but republican tax cut plan. That is coming out tomorrow. We have all details on it for you. A terrorist in new york city, driving a rental truck into a bike lane killing eight people, leaving 12 injured before being stopped by police. Former advisor to President Trump, Sebastian Gorka is here with the intel. Before we hear that we go to adam. Maintaining target funds rate at 1. 25 . There is no hint of an crease in the december meeting. Inflation on the 12month basis is somewhat below 2 in the near term. They have changed the language somewhat on inflation, saying now, quote, that inflation for items other than food and energy, remain soft. Soft the new word there. Economic conditions will involve a manner warrant gradual increases in the federal funds rate. Labor market h