Transcripts For FBC After The Bell 20180212

First Nicole Petallides in the New York Stock Exchange and nicole what was driving the rally today . Nicole certainly we have an opportunity to bounce back after two weeks we certainly had a tough run over 2400 dow points dropping 9 it was fromming to see the back to back gains gaming over 300 on friday and holding on to a decent gain of over 400 points thats 1. 7 the fundamentals are the same. Corporate earnings are on the rise, we have beneficial new americas tax plan, we have the budget in place so these are the things and of course the new infrastructure ideas for the two years ahead also help to give a boost so taking a look at the dow, nasdac and s p and i was looking at the yeartodate numbers because we saw the dow going in and out of positive tear tear tori yeartodate but the nasdac in the green for the year 2018 after a stellar 2017 so there you go right . We werent able to squeeze it out but a couple more days of this action we will see some up arrow and a lot of the folks feel ultimately youll be looking for value and there is room for the upside. I did mention the new infrastructure plan over the next decade 200 billion for everything from highways to airports and you could see some of these the dow, apple, dupont, boeing and American Express take a look at these infrastructure related stocks from akc ucs up more than 5 each, u. S. Concrete 2. 6 and engineering, so certainly some optimism back on wall street but no way, shape or form do they think its one way. They expect the volatility, they have a cautionary tone but for right now they will take a winning day wall street. Back to you. Melissa nicole thank you. David lets get reaction from our panel weve got liz peek from the fiscal times and Adam Lashinsky fortune executive editor and fox news contributor. Liz, wednesday we get the Inflation Report. I have thought by the way that a lot of investors are just going to wait for that Inflation Report before they either jumped in or got out more than they already have, but theyre not doing it, right . Well stocks went on sale. Look if youre impressed as an awful lot of people are with the integrity of the economy, the fact that the economy is just ro aring ahead and lets face it economists across the street are raising their forecast to 33. 5 earnings are going to be incredibly strong and look if theres any way well get out from under this towering National Debt and reduce our deficits its through growth so you know you have to kind of conclude that the trump agenda is working and people are still pretty cheered up about that. David well adam, if on wednesday, we get an Inflation Report that shocks to the upside , if its higherthanexpected do you think stocks will swoon again . Absolutely only because this market has become extremely reactive and traders are running around like people with their hair on fire or maybe their hair is on fire for all i know so short answer yes they already expect inflation an if its worse things will be really ugly david liz even in investors or plain old folks are as optimistic as you are about the economy and its effect on the market should you reconstruct your portfolio somehow . A lot of people have 401 k . Ive gotten a lot of questions over the weekend people say maybe i can switch to a fund that has more bonds in it what do you think . I think its the wrong time to buy bonds. I think if youre again positive about the economy and a little worried about inflation always thats been a recipe for buying equities. It could mean you look at different sectors you look at things Like Companies like caterpillar tractor that would benefit from Infrastructure Spending, maybe avoid those companies where dividends play a large part in returns, but look, inflation so far lets face it. We see one pick up in wages, capacity out ill specialization the economy is only about 80 its not anywhere near stressful david so theres huge room to grow. Yeah, there is. David adam what about you . Let me ask you personally are you changing your own portfolio your retirement portfolio . No, not in the least and so i think the very first thing that liz said a moment ago was the true its thing which is that the economy is doing well and that story hasnt changed in the last two or three weeks certainly not in the last 10 days. The only thing that people should do especially with regard to the Retirement Savings is always know about where, how they want that allocated stocks versus bonds versus long term or shortterm and they should adjust when the market adjusts, not because they want to make a call, because most of us cant make a call. David and we certainly cant get ahead of the market right, liz . Thats what weve all learned the hard way i think. Yeah, timing the market is pretty tough particularly with this kind of volatility. David the panel is sticking around with great advice for everybody here. Melissa youve got a special guest. Melissa hes at the center of the action this is tom farley, the president of the New York Stock Exchange and tom its great to see you again. You have a birds eye view from down on the floor and im not asking to predict whats coming but certainly you can feel the vibe. Do you think this volatility is here to stay for a while what does it feel like . Great to be with you again melissa. Dare i say it was a pretty normal day. Volatility came in a little bit today, industry volumes were more typical than the trading last week, you know, it was a good day in the market prize wise but from my perspective even better because it felt like a normal day. Melissa what if the last almost two weeks were like that . You know, ive anyone who will ask ive been saying the same message which is markets go up, markets go down, thats what they do investors should make long term decisions not day by day decisions based on what theyre seeing on tv or the particular movements in the stock market for that day and that panned out last week. If you looked and you held through what was it on monday, the dow was 24, 300 and on thursday it was 23, 800 and you could have in a panic sold everything you had and now its right back up above either one of those places, so my advice is just then calm down, relax, the underlying economy is good. The stock market has been very good and in fact its still up 14 the dow jones since the night of the election. Melissa there are a lot of people out there blaming electronic trading for amplify ing the moves. What do you say to those people . Its always good to find somebody that you can, you know, you can poke at and say oh, this is whose responsible for market turbulence but its just simply you cant do it. Its always a combination of humans and human judgment and emotion as well as machines that have been programmed to behave in a certain way but whats happened over the last week, its normal. Markets go up with low volatility and they come down with high volatility and weve been nearly two years since we had a period like this. This is the normal functioning of the market and everyone should relax and take a long term perspective. Melissa do you think Algorithmic Trading amplifies the moves or do you think thats a fallacy . No, i think the move on monday was Something Like the hundredth biggest decline in the history of the dow on a percentage basis . It was a big move but it wasnt the end of the world so i dont think todays modern trading is any different than yesterdays or 20 or 50 years ago. Youre going to get volatility. Its the way markets work. Melissa yes, did you hear any complaints from anyone wanting to know what was going on or wanting to know if, you know, there were other people stepping ahead of them in their trades . I mean, did you get angry phone calls or does everybody understand thats sort of business as usual . Not angry phone calls just a lot of concern because when the markets moving around like that people are worried. A lot of your viewers are worried about their nest eggs for example. I will tell you on monday and thursday there was a lot of talk about well what if the market keeps going down and we trip one of these marketwide Circuit Breakers so that was something we spent a lot of time thinking about. Fortunately we practice once a quarter with the entire industry but that was a cause of some focus but otherwise no from the Exchange Perspective everything kind of worked as advertised. Melissa you guys are there youre humans you have it under control youre out there to tell everyone you dont need to panic weve got this thing we can see people behind you its not just the computer taking us on a wild ride, right tom . Yeah, it helps and in fact as i was walking over to your studio here there was a situation where we had a stock that had an imbalance on the close and it gave me great comfort to see a number of people gathered around the sophisticated machine to apply human judgment and i kept walking to your studio with full confidence it would be worked out appropriately. Melissa tom farley, we appreciate your time come back soon. Thanks melissa appreciate it. David what a calming guy. Melissa i know. David by the way, well have bart chillton on later, he think s there need to be regulations to deal with the volatility in the markets specifically with some of the new Financial Instruments well play a little of what farley had to say and get bart to respond. Meanwhile investing in a Greater America the white house unveiling the president s 4. 4 trillion budget plan today, a budget that includes 200 billion in federal funding for infrastructure, 23 billion for border security, 85. 5 billion for veteran care and 17 billion to combat the Opioid Epidemic this on the same day as the president unveiled a huge 10 year 1. 5 trillion infrastructure plan for new investments and to shorten the permitting process, the president during a meeting with officials today says a plan is of great importance. Take a listen. President trump this is of great importance but its not nearly in that category because the states will have to do it themselves if we dont do it but i would like to help the states out and were doing that with a very big investment. David liz peek and Adam Lashinsky are back with us. Adam, i dont really see Government Spending, infrastructure or stimulus plans as helping the economy, generally, very much. Do you . I know, its funny i was waiting to hear what youd say davis david because i knew that about you. No, i think they can but they need to be done responsibly and so were seeing a very strange experiment and governance here of republican president promot ing Spending Plans that are way out of whack with responsible budgeting and so david well try to convince conservatives like me that Government Spending good work in certain instances. And i dont think theyre going to do that david so its a fas nateing story. David well one thing, liz one key point and im not a big believer in Government Spending programs and i dont believe theres the Multiplier Effect outside the private sector that is but there is a key metric here and it may seem a little ne rdy, but im going to put it up on board because its not necessarily the dollar amount of the deficit thats important. Its the deficit as it relates to the gdp that is if you have a big deficit and the gdp grows tremendously as it did with Ronald Reagan you wont get too much out of whack. It was 4 deficit of didnt and bill clinton is the big winner here,. 5 partly because he got the peace dividend he could bring back Government Spending tremendously because of that and then his successor george bush comes in, spends a lot more money because of 9 11 and then youve got barack obama 5. 8 where do you think trump is going to wind up in that scenario if he gets his Infrastructure Spending . Well i think the ratio is going to be smaller but the whole point of the infrastructure plan he rolled out was its going to rely more on state and local government funding and more importantly, and this really is something we need to talk about in this country, it relies on private dollars. The government the federal government doesnt have a lot of money to spend. The private sector really does. We have a lot of liquidity and credit available out there. Thats where the money has got to come from and by the way this is not a radical idea. In europe they always see d countries its a much higher percentage of Infrastructure Spending thats coming from the private sector than it is in the United States. Our Municipal Bond markets always taking care of spending on infrastructure but now those entities are pretty much maxed out as well. So i like this program. I think its exactly the right way to go. David adam thats the one area that trump could get free market conservatives like myself, perhaps you could pull me along kicking and screaming if you will if you could suggest that look the bond market might take care of most of this. Theres going to be mostly private sector, the government enabling the private sector to do the work. What do you think . Well i would just like to say one good thing about this president and this plan which is that his ideas around permitting is actually something that he knows quite a lot about. David absolutely true. And would be helpful and the rest i think is going to be a disaster and nonsense. David well liz, i think adam brought up a great point which we hadnt mentioned is this is a president who spent his whole life dealing with stupid government regulations trying to overcome them and in fact he pointed out that the wonderful example maybe its an example used a little too much, but of how he got that ice skating rink in central park working after 10 years of the government trying to do it, the city government, he did it under budget and under time in about three months, so whenever youre able to trump these trouble excuse the pen but trump the terrible regulations and speed things along its good for everybody. Again other countries have done this. We take up to 10 sometimes 20 years to even add a runway at an airport. Its outrageous and it drives up cost. David thats the whole point right because the cost, everybody wants a little piece of the action. Thats exactly right. I really think two prong thing, private money, lower cost through better permitting thats push that should be on right now david competition is the key and the problem with government projects its a monopoly. I think everybody would agree liz and adam good to see you both thank you very much. Melissa . Melissa well well have more on todays big market rally but were also keeping a close eye on capitol hill, the Senate Voting within the next hour to begin a free wheeling debate on an empty bill tackling immigration, dreamers and the border wall, a live report from washington coming up. David meanwhile the president is touting a big boost in military funding while slamming more than a decade of wasteful spending fighting in the middle east. Melissa israels Prime Minister issuing a stern warning after a weekend of air strikes in neighboring syria. How far could this escalate, rebecca hendrix, a military fellow joins us next. You want to use the syrian territory to attack israel to destroy us. No matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. When it comes to travel, i sweat the details. Late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Mom stuffynosecold nosleep mouthbreather just put on a breathe right strip it instantly opens your nose. Up to 38 more than Cold Medicine alone go to breatheright. Com today to request a free sample. 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. David money missspent, President Trump unveiling his infrastructure plan but not without criticizing Previous Administrations Foreign Policy blunders, wasting american treasury in various middle east earn conflicts. Take a listen. President trump the trillion dollars in the middle east and it is far worse than it was 17 years ago when they went in, i have to say went in. Im being nice. So its a very sad thing. David now, all this after israel over the weekend blaming iran for the downing of one of its own jets while that jet was on a Bombing Mission in syria, sparking fears with all out war in the middle east here is rebecca a senior fellow from the hudson institute. First lets deal with whats going on between israel and iran because this could get very hot particularly since israel is a nuclear nation. Is israel simple question going to war with iran . Israel has been, you know, taking care of its own National Sovereignty and in this particular case, you know it shot down an aircraft that was flying in its own air space, and israel had been very clear that it will not allow iran to use syria in particular as a pathway to continue to fund hezbollah and terrorism that directly threatens israel, so israel is sort of a case study and what it looks like to have a country that has the will and the capability to defend itself and its own sovereignty and clearly it will continue to do this if i ran continues to press its luck and threaten israel. David but an all out war if we could just put up a map because what youre talking about when were talking about iran spreading its influence, they already pretty much own lebanon. I know theres a government there but through hezbollah and other puppets that they have in lebanon they want to spread that north to syria. That way iraq would be caught and eventually some people say most of southern iraq could become part of iran, and thats what israel is trying to prevent , right . Thats exactly right and also what the United States is trying to prevent. Remember the Previous Administration the Obama Administration sought out to legitimize iran that was part of what the iran deal was about. David i just cant understand why they would do that. I mean, why would we want to empower an enemy not only of israel but of ours . It was a mistaken notion that if you legitimized iran over time it would moderate itself and it would become less volatility and also it it there needed to be a different balance of power that perhaps if you gave iran more power and influence in the region that would moderate the entire region which is a complete mistake. David let me get to the president s point because what he said was that we spent 7 trillion and of course that does not include the more important spending of human lives, american lives in trying to bring peace to the middle east he said things are worse now than they were 17 years ago. Would you agree . I think thats right in many areas i think its a mistake to relitigate going into iraq et cetera. I think what we have to do now is figure out how were going to get out of a lot of these mess that have been created. The president was given a situation in multiple areas and now he has to deal with it and President Trump hes not a fiscal conservative. He doesnt care necessarily, he cares but hes not super concerned about overspending. He cares about spending money in the wrong ways so hes trying to dial back american Foreign Policy, make sure the United States is strong, has strong leadership but that were not going to get involved in places with unrealistic issues. David rebecca sorry to switch we only got about 30 seconds it deserves more time than that but the way the American Media was dealing with the sister of the north korean dictator, youve written a lot about north korea you know what the situation is this is a guy who killed his own brother, you know, sent a missile out to kill his uncle. Theyre dealing with the sister of the dictator seen here while shes in the olympic games, so shes the winner in a standoff with the United States as though shes sort of the north korean complement to melania trump. What do you think . It was disgusting. I could not believe the Media Coverage of this. This woman is the head of the propaganda arm of north korea. North korea and the totalitarian dictatorship, a humanitarian disaster and i believe vice President Trump was an excellent model of what it looked like to be poised and to counter this and the media did not focus on that and it was a shame. David it was unbelievable. I mean hitler was host to a olympics back in the 1930s and some of the press fell for his Razzle Dazzle as well. You have to go back to that so i dont think youve seen anything like it since then. I mean its just amazing, a totalitarian butcher like him could be seen as any equivalent to any american democrat. Go ahead. And theres no objective need for it. It was simply the woman was there. She was physically there. She didnt do anything. All the media had to do was she smiled. All the media had to do was cover what the president and Vice President was doing, cover what the olympic athletes were doing and do not give north korea what it wanted which was propaganda victory and the American Media fell right into its trap. David rebecca thank you very much i agree with you 100 and i month melissa does because you were listening to the whole thing. Melissa head of agitation and propaganda. Thats her title. David for cnn to make an equivalence between the president s wife and daughter and this sister of a butcher, its just extraordinary even by the way the cnn corresponded had to scream about how crazy that was. Melissa amazing. All right, finding a budget that works for our nation of debt, Glenn Hubbard has a new ideas of his own on how to build a better budget cant wait. Thats next. The reason the infrastructure is crumbeling is because the bureaucracy doesnt enable it back so what were going to do is to empower the states locality to use some federal dollars to match it and reinvest it in their communities. A new truck for your mom or dad, knowing that they could possibly pass it down to you one day. Oh. Cool. But before you decide, you should know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. Which means that ford f150s are not. giggles which truck would you pick . The chevy. There you go. Boom. That was obvious. Plus it looks cooler. No doubt about it. Now they know what to get me. You for four years. You named it brad. You loved brad. And then you totaled him. You two had been through everything together. Two boyfriends, three jobs. Youre like nothing can replace brad. Then Liberty Mutual calls. And you break into your happy dance. If you sign up for better car replacement™, well pay for a car thats a model year newer with 15,000 fewer miles than your old one. Liberty stands with you™. Liberty mutual insurance. Melissa seeking an honest budget, oh, my, President Trump sending a proposal to Congress Today but my next guest says we need a new client of budget in his wall street journal op ed titled an honest federal budget would help control spending and debt here is Glenn Hubbard former chairman of the u. S. Counsel on Economic Advisor s under george w. Bush. You have a bold proposal in here you say that each years total federal spending should be limit ed to the average annual inflation adjusted revenue of the previous seven years. A limit . No well, you know, im not so sure its so bold. Its actually Pretty Simple in that normally in a family or a business, we think about paying for ordinary operations out of current income. Melissa right. The government might well want to do that. Ordinary operations also includes transfer payments though and thats the real problem in the budget. Without some kind of mechanism or rule i dont see the process working. Melissa yeah, but a rule like that it would be such a shock to the system, right now. Well it would be, which is why its not going to happen tomorrow but what could happen tomorrow is more information to the public. What really is the debt of the country . What is the true deficit the country has, and putting out reports. There are governments like canada and sweden that have done a much better job in recent years than we have. Melissa well yeah because the popular thinking or at least the propaganda is deafs and deficits dont matter and people have become numb and immune to the idea, you always hear our government is spending so much were spending our childrens money but it doesnt seem to, you know in the list of things people get upset about this is really low. I agree but it shouldnt be. Melissa why, how do they feel it today . Basically as a country if we want to continue to grow and i give the president a lot of credit for resetting expectation s there but if we want to continue that and we want to defend the nation, build infrastructure, educate our kids were going to have to have different budget choices. Talking about trillions is no way to talk to the public but talking about what future taxes would have to be to pay for this is a better way. Melissa we all know the only way to get spending under control is about entitlements, without doing work on that its really just sort of silly. Whats a way to tackle that that would be palletable to these people in washington who are very concerned about keeping their job . They dont want to be the one to say weve got to cut in order for future benefit, they will be like im out of congress then what do i care . Well its a threestep process. First is telling the public the truth what is really the deficit and the debt, the second would be to say if we increase entitle ment promises within a year put that on the budget so politicians go home and say we have to raise taxes or cut other spending and finally move to some sort of rule and we have that by the way for much of the budget just not the part that counts. Melissa so if we made changes like people have talked about taking sore at security and means testing it or raising the age would that make a significant dent if we started to make those kind of changes . It certainly would if we raise the retirement age gradually and cut the growth of benefits for more affluent people that would help a lot same in medicare but right now nothing forces political leaders to make that choice. Melissa well they arent going to force, theyre the ones that write the laws. Thats true but thats where you start with information. This is a problem for all of us. If voters know the truth they see the numbers and see the consequences, like we want to be europe on defense, do we not want to take care of our children . Thats whats at stake. Melissa i think theyre saying im having a hard enough time staying on my budget at home and i have to worry about them in washington too . Its like two headaches. Im afraid its two headaches but if we dont fix it a headache turns into something worse. Melissa appreciate your time. David chuckle heads . Melissa thats about right. David meanwhile reregulating the markets de regulation led to a moving economy but is some new regulation needed to stabilize these wild markets, former commission at u. S. Commodity Futures Trading Commission coming up on that, plus a rare open debate the senate set to take up immigration on the floor in the next hour, what to expect coming up. This president is the only one whose being sincere in trying to fix and find a long lasting solution for the daca problem. This new day looks nothing like yesterday. Trails are covered. Paths arent what they used to be. Roads nowhere to be found. and its exactly what youre looking for. melissa here is another look at todays rally on wall street the dow ending up 410 points all three of the major averages climbing more than 1 closing in the green for the second day in a row. This following the worst week for stocks in more than two years. The nasdac is now in positive territory again for 2018. David well finding a solution to daca in just about one hour the senate is expected to launch its debate on a general immigration bill. Its going to get very fights it , fox news chief Congressional Correspondent Mike Emmanuel is on capitol hill with the latest every time we see one side or the other talking about it theyre practically screaming at each other so this is an interesting debate. David no doubt about it its interesting though that on the day the senate is launching this immigration push the leaders of the two parties were in the majority leaders hometown louisville, kentucky sounding like theyre ready to go. At every critical moment in this country weve come together to do what needed to be done to move the ball down the field. It wont be easy but were all going to try because of the gravity of the issues at stake and because we know that this week will be a test of whether the senate can steer the ship of state through the stormy waters. Now i believe it can. Perhaps feeling a little more upfeet after they were able to hammer out a bipartisan deal on spending levels. The politics on the house side of the capitol are much different. Many conservatives want the plan from judiciary chairman Bob Goodlatte and would allow dream ers to apply for three year permits and live and work here. I say find an accommodation for them but no amnesty. We cannot have the individuals get in the queue in front of individuals that have been legal ly working through this process for years. I know families that have spent every dollar theyve made, every dollar theyve saved and 10 years trying to get their citizenship through the legal process. A california democrat says her side blew it last week. It was a real mistake that we didnt use, the leverage we had in the last spending bill. We have a couple opportunities coming up maybe one and i think we need to continue to use that and Congress Needs to stay there until we get this done. First things first, the senate gets it started tonight. David . David oh, my sisterinlaw has been trying 10 years to do it legally to get a green card, 10 years if somebody came in and jumped in front of her with all the good work shes been doing for 10 years wed be pretty mad. Absolutely. Melissa i heard congresswoman blackburn make that point and i thought of you because Everybody Knows somebody like that. David you try to do it legally and get kicked in the rear end. Melissa there you go. How do you really feel about it david . Two gop senators announcing theyve discovered a new email from former Obama National security advisor susan rice. 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David well an unusual email uncovered a partially unclassified email that was sent by a former Obama National security advisor susan rice to herself on the very day that President Trump was inaugurated has now been uncovered. Katherine herridge is live in d. C. With details. Very strange doing, katherine. Well it is david. The republican chairman is a powerful Senate Judiciary Committee Chuck grassley and Lindsay Graham sent this letter to former National Security advisor susan rice but an email she sent to herself on Inauguration Day documenting a january 2017 Oval Office Meeting between president obama then fbi director james comey and former deputy dagen sally yates. Theyre discussing the Russian Election interference and need to determine whether information should be shared with the Incoming Trump transition team. The fbi investigation into the Trump Campaign contacts with russia at this point was entering its sixth month and the rice email reads in part, the president stressed he is not asking about initiating or instructing anything from a Law Enforcement perspective. He reiterated our Law Enforcement team needs to proceed as it normally would by the book. The senators had given the former National Security advisor until february 22 to answer a series of questions. Why would she make that kind of claim about the president and his instructions that they follow standard procedure when now all the evidence suggests that standard procedures were not followed in this case, david david theres an acronym cya, which of course we all know whether some of that was going on whether she was trying to prevent as you say the impression that she did something which many people think she did do which is interfere in an investigation but theres a series of questions that grassley asks in his letter and i want to read one of those questions and see how youd respond. Sure. David when did you and hes talking to susan rice here, when did you first become aware of the fbis investigation into allegations of collusion between mr. Trumps associates so the question is how long was she aware of this fbi investigation going on . Well it goes to this issue i think to the extent to which the past administration was aware of the russia intelligence investigation being run by the fbi this was an investigation so closely held that it was not brave to the senior congressional leadership the gang of eight but based on what we know to date it does appear it was widely shared with senior members of the Previous Administration. It also goes to potentially this issue of unmasking. This was the identification of Trump Campaign associates in foreign intelligence reporting. The allegation is she does a fair amount but the person whose under named the most was done was former u. N. Ambassador didnt really have an intelligence position that would require that kind of intelligencerelated activity david. David of course they worked very closely did they not . They did and its a fascinating email. We dont know what it means at this point but it seems to suggest that the president was not in favor of taking action, that may already have been underway at that time. David well if anybody can get to the bottom of it, its senator grassley. Im going to do my best. David thank you very much katherine. Good to see you appreciate it. Melissa the Trump Administration flashing dozens of regulations after promising to get more but last week the wild fling in the stock market has our next guest control the volatility. Bart hilton is the Trading Commissioner, hes next. This is laura. And butch. And tank. And tiny. And this is lauras mobile dog grooming palace. Laura can clean up a retriever that rolled in foxtails, but shes not much on articles of organization. Articles of what . So, she turned to legalzoom. They helped me out. She means we helped with her llc, trademark, and a lot of other legal stuff thats a part of running a business. So laura can get back to the dogs. 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David well the dow has broken its sixday streak of 500 plus point swings that kind of volatility by the way hasnt been seen since 2008 and our next guest thinks theres something the government should do lets bring in bart chilton the former commissioner at u. S. Futures commodity Trading Commission and fox business exclusive great to see you again bart first of all. A lot of people come up to me and say you know, i bet that the government is going to try to do something to upset an expected pullback. The market was for months now theyve said it would be even a healthy thing if the market pulled back as it has, about 10 the worst thing that we could do because de regulation is in the economy right now is to try to reregulate the market to which you say what . Well, i mean im not suggesting, david, that we should, you know, get rid of volatility in markets. I mean volatility is part of markets and ive been calling for a correction for months and months. I was almost embarrassed it had taken so long but im not sure that anybody present company included expected it to happen so fast and so furiously, so all im suggesting is that perhaps the exchanges and the regulators look at things like the Circuit Breakers make sure theyre still working appropriately. I mean markets are faster than theyve ever been an thats not necessarily inherently bad but its also stuff that we need to be looking at and all too often regulators just sit on their laurels an say weve got this big rulebook and were fine with it. They need to be regulations need to be living breathing documents , you need to be nimble and quick and look around the corner and thats all im suggesting david. David certainly, by the way you mentioned with our own neil cavuto last week that there might have been im using your word here, shenanigans going on, at the sec. Can you elaborate on that . Well yes its my irish heritage. David [laughter] i know the word. No, i think that there could be some nefarious actions there and look there was a day, david, where i would know. I would get this information as a regulator. I dont know but i do know that individual traders have come to me and lost hundreds of thousands of dollars and i dont even want to say the product because i dont know for sure but in these really exotic Leveraged Exchange traded funds and the inverse leveraged etf, and some of these i just think are not for mom and pop investors. David no of course not. Id never think of getting in myself or suggesting to anybody else to get in but again, buyer beware, you know . Youve got to if you get into Something Like that and you lose hundreds of thousands of dollars , i mean whose fault is it . Well two things. Id say well maybe three even. One is that, you know, theres got to be appropriate disclosure and theres such a long list of disclosures now that it almost doesnt mean anything, so i think again, in the living breathing document world you need to look at what are the appropriate disclosures on these leverage and inverse etfs id have a skull and cross bones and say do not get in here you could lose your money. Secondly i think that we have to look at the interaction between these sorts of products and other products in the market. Are they operating as we think that they should . Are we con torting markets in a way they should . Again its just a look. Regulators just dont do that and i think they need to do a better job in that regard. David let me play for you a sound bite from tom farley hes the president of the New York Stock Exchange. Whats happened over the last week is normal. Markets go up with low volatility and they come down with high volatility and weve been nearly two years since we had a period like this. This is the normal functioning of a market and everyone should realmost and take a long term perspective. David go ahead bart. Two things one i know tom i talked with him last week and we used to regulate when he was ice futures u. S. , great guy who does a super job but if you go back to 2015, august 4 youll remember david because we talked about it on your show how the exchangetraded funds acted in a way with incredible volatility. All im saying is look at these things. Never hurts to look and i guarantee you regulators at the sec are doing that. David we only have 15 seconds is there anyway you can isolate these special Financial Instruments from the rest of the market . I think you can. You can classify them in different ways and thats not only what i hope but what i expect that the sec may be doing proposing later this year david. David and you think they will actually get done being able to classify them differently and that would satisfy you . It would, and look you know theres got to be a comment period. Youve got to make sure i dont know the exact way but i think thats a direction they should head and i think theyre going to. David bart chilton always a pleasure to talk to you. Youre a very open minded guy and i appreciate you. I am. David thank you very much. Thanks david. Melissa peter rabbit once an adorable beloved childhood figure, that funny . David what . Melissa a bully. Well be right back. female vo breaking news from washington as lawmakers; male vo raging wildfires continue to scorch parts; male vo allegations of misconduct; oh, why you look so sad, the tears are in your eyes, mvo how hard is it just to take some time out of your day to give him a ride to school and show him you support him. And dont be ashamed to cry, let me see you through, cause ive seen the dark side too. When the night falls on you, you dont know what to do, mvo when disaster strikes to one, we all get together and support each other. Thats the nature of humanity. Ill stand by you, wont let nobody hurt you. Ill stand by you, so if youre mad, get mad, dont hold it all inside, come on and talk to me now. Hey, what you got to hide . Mvo its a calling to the nation of how great we are and how great we can be. Im alive like you. When youre standing at the cross roads, and dont know which path to choose, let me come along, cause even if youre wrong ill stand by you. Ill stand by you. Wont let nobody hurt you. Ill stand by you. Even in your darkest hour, and i will never desert you. Ill stand by you. Looking for a hotel that fits. Whoooo. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. Melissa a controversy over a fluffy little bunny rabbit. Some parents are now boycotting the new peter rabbit movie over what they call allergy bullying have you ever heard of that . David ive never heard that phrase until today. In the new live action film, one scene shows peter rabbit and his fury friends pelting the villain with blackberries knowing that this guys allergic to those blackberries and one flies into the characters mouth and he starts to go into shock before injecting himself with an epipen and now Sony Pictures issued an apology for the scene saying they should not have made light of the issue to which a list of things melissa this is so ridiculous. All three of my kids love the movie we are a household that has epipens, it was adorable, its ridiculous the villain was trying to blow them up with dynamite and they responded with blackberries, which do you think is more lethal there . He was bullying them with dynamite. They turnaround with blackberr ies. The whole thing was silly. I mean this is really people who have too much free time on their hand or the blackberry allergy lobby is looking for pr, which is what i think. David it shows you where we are melissa risk rewards, there you go. President trump this morning i submitted legislative principles to congress that will spur the biggest and bold its Infrastructure Investment in american history. Going to have a lot of Public Private and that way it gets done on time, on budget. It will speed the permit approval process from 10 years to two years and maybe even to one year. Washington will no longer be a roadblock to progress. Washington will now be your partner. Liz the dow soaring more than 400 points as stocks bounce back from their worst week in two years, and wall street pros now joking to us did we just miss buying the dip or is the worst really over . The dow now back to where it was