Stocks or the Technology Stocks in general. The dow and s p were both in the green, but the technology selloff left the nasdaq down. Disagreements over details in the healthcare reform bill, including the taxes in the law. The Trump Administration did have a big victory. The Supreme Court allowing much of the administrations sixnation travel ban to go into effect thursday night. It went into effect with no issues. It will hear the case in october. Martin shkreli was known for hiking the price on an hiv drug by 5,000 percent. One juror said he would only be i am partial on deciding which prison shkreli should go to. Wall street watching lots of things this week. Battles on capitol hill and even the president s twitter feed which some say may be getting in the way of his check agenda. Jason, you have been a longtime participant in wall street week. So we are happy you are here. Tell me what the market are focused on. We have a bill sitting in the senate. Here we are on july 4 weekend. They didnt do it. Do you have confidence they are going to get this done . The market is probably telling you at the very least washington is not getting in the way before the market seems to be discounting better Economic Growth. Our opinion as a firm is that the administration will get more it economic agenda through particularly with deregulation and financials and energy. And i think there will be a food fight when it comes to the tax bill that will come later on this year. But even though tax reform may be difficult to get through, tax cuts in our opinion are very, very likely before 018. Before 2018. Maria your firm thinks thing will get done. Personnel is policy, which is to say, the laws dont have to be changed, its the people interpreting the laws, those make a big difference. You dont necessarily have to change laws, you just have to have people who think about them differently. In financials and energy thats the case. There are not a lot of profiles in courage among congress. Republicans in congress will have to deal. If they cant get tax reform they will have to go for a tax cut before the 2018 midterms. I think there i bipartisan support for a tax cut. We think those things will get done by the First Quarter of 2018. Maria you think well get a healthcare bill. They will cross the finish line. In terms of tax reform it may just be tax cuts. At this point i think its most likely. You are running out of time. The attitude in washington does not allow for a big bill that requires saving people from across party lines to get things done. I wish it were different but it doesnt appear to be the case. Where i do think there is some risk which would be with some of the tech stocks be energy and financials were seen as evil, but certainly a part of problem in the last 8 years. Tech was largely insulated. Those rolls are being roles are being reversed. Now there are real questions with amazon buying whole feuds and google and the antitrust issue. There are concerns about the concentration of power. For investors thats one kind of change i would keep in mind for these highpriced stocks. Maria thats what we are seeing, investors giving a second look at financials and energy. Because of energy and the rollback of regs in financials. Amazon, netflix and google. They are having a rough week. Tell me how you want to allocate capital. Etfs, does it still work . Do you like small caps or any area of the market better than others. I think active management will make a big comeback. I think part of the reason its done so poorly is the Central Banks have been purposely suppressing Interest Rates which shortcircuited the process of capitalism. You kept weak players in retail and energy and other sectors in business. And that sounds nice, but the problem is its before have i to allocate capital that way. As rates normalize i think active manage the is going to do quite a bit better. You will see more volatility with the economy and some of the sectors. As far as the small cap, we have a bias towards large cap stocks. The large Government Systems tend to favor very Large Companies because they have the lobbyists, the accountants, the lawyers to make to ma niewfort levers of government in their favor. So the extent to which you are starting to relieve those pressures small and Midsize Companies do a lot better. Maria we are going to talk to Alan Greenspan in a moment. But i asked him, are you worried about winding down the Balance Sheet . He said, maria, i cant answer the question. I take that as yeah, im worried. Janet yellen will be stepping down at the fed. The pace at which the fed is talking about winding count Balance Sheet, i would be worried about it. But the pace is so glacial that im not sure it will make it wont have a big impact. I might take a different point of view. At this point the irony could be janet yellen could be most likely successor to janet yellen. Maria she doesnt have to step down. The president i think has indicated there is an uneasy peace between the two. I dont know if they are b. F. F. S. But a truce has been declared and they are kind of on the same page now. So i think that would be good for market continuity. I think you have to have someone obviously she is very well qualified. She is a very dovish person. Maria more wall street week right after this. Announcer fed chair janet yellen has investors in a tissy. But does another fed chair agree this time . Alan greenspan joins wall street week next. We have been in an economy with low Interest Rates for some time. Asset valuations are somewhat rich if you use some traditional metrics like earnings ratios. But i wouldnt try to comment on appropriate valuations and those ratios. Maria that was Senate Federal reserve chairman janet yellen saying low Interest Rates led to rich asset valuations. Clearly sustained low inflation implies less uncertainty about the future and lower premiums imply higher prices of knocks and other earning assets. But how do we know when irrational exuberance have escalated asset values that become subject to unexpected and long contractions. Maria that very man joins me right now. Former federal Research Chairman alan green span. You foresaw what was to occur in markets long before it happened when you said irrational exuberance. Do you see similarities between todays market and what you saw in the late 90s . Alan greenspan there is no irrational exuberance that i can see. Its the opposite at this particular stage. Nonetheless, we have a situation in which risk premiums are not all that out of line. And i would not be surprised to see stock prices rising. But not at any pace that could be termed irrational exuberance driven. Maria you have always looked at the socalled wealth effect and what that means for Economic Growth. In terms of the wealth effect today, we were seeing the stock market up 16 since election day. We are seeing a number of Technology Names at their highs. Has that impacted broader Economic Growth . People feeling richer so they are spending more money . It invariably will. If they like it or not, thats the way they behave. When you get stock prices moving up and Capital Assets in general moving up. It does impact consumption expenditures. So part consumption has been weak. You have got spending out up 1 10 . Amazon. Com take market share and malls going out of business. How would you characterize Market Growth today and what are the chances we get to 3 growth . Steve mnuchin our treasury secretary is betting on it. I think the Second Quarter will show a 3 change. Its deceptive because they are having a problem with the seasonal adjustments. As a general rule i tend to average them. If the average is 1. 4 and 3. 0. Thats not terrific number as far as gdp is concerned. But it in turn is exactly what you would expect at the levels of productivity growth we have now experienced for a number of years. Maria i had a chance to talk to allarion. The condition to believe that Central Banks are their best friends forever. But the effectiveness of Central Bank Policy is declining because its only a limit beyond which you can simply build a bridge to nowhere. At some points you have to build a bridge to better fundamentals. Thats why the Central Banks need to hand off. Maria they are suggesting maybe the stimulus comes to an end soon. The fed raising Interest Rates. How do you responds . Alan greenspan i are always thought mohammad is thoughtful ande is in this case. We rarely disagree, but this is not one of the cases where we disagree. Hes right on the money. Maria will fiscal policy if we get it move the needle on Economic Growth . Alan greenspan if we get it is the question. You cant get growth going so long as entitlement expansion is anywhere near where its been recently. Its eating up the sources of investment and the sources of growth, and you cant have it both ways. You cannot fund all of the entitlements everybody wants and expect that you are going to get a gdp out of that of 3 or more at an annual rate. The arithmetic doesnt work. Maria thats why they are trying to slow count growth of medicaid involved in this bill right now. Dont go anywhere. We have so much more to talk about. We have more with dr. Alan greenspan when wall street week comes back. Announcer fed chair janet yellen says the economy is much safe were. But what has Alan Greenspan worried . I think the system is much safer and much soundser. As i mentioned, we are doing a lot more to try to look for Financial Stability risks that may not be immediately apparent. Would i say well never ever be in another financial crisis . Probably that would be going too far. But i do think we are much safer and i hope it will not be maria janet yellen says she expects no new financial crises in our lifetime. We are back with Alan Greenspan. All four of the major banks passed the stress test this year. Is it too optimistic to say there wont be another crisis in our lifetime . Alan greenspan i was fed chairman for a number of years. My predecessor fall volcker never commented on what i had been doing or saying. I tried to invoke similar characterization of my remarks such that i go to the sidelines. I know janet obviously very well. We worked together. She is a first rate economist. But i wont break my version of the volcker rule. Maria i totally understand. Let me ask you about those stress tests and the regulatory environments. As the president has been rolling back regulations through the the Financial Services sector, trying to redo versions of doddfrank. Whats your take in terms of rolling back the regulations and their impact. Alan greenspan i judge the fact that thats what the markets think. Risk premiums have declined and there is a heavy overhang of doddfrank that sits on the markets. And i think that has been lifted somewhat about by the expectn there will be significant deregulation. If that happens, and i think it likely will. That has a positive effect on asset expansion. And asset price expansion. As a consequence of that, i think the outlook is good in that particular area. If not have much anywhere else. Maria in terms of the behavior of the bank, if they have these regulations lifted, you would think they would have more wiggle room to invest. Maybe more wiggle room to invest in cap x. More wiggle room to hire. Do you see a loosening of that . Alan greenspan im on the record for arguing that the actual level of reserves against assets, the amount of equity in a bank or financial intermediary, that ratio should be much higher than we currently hold. Commercial banks are a little over 10 equity to assets. I think the figure ought to be 30 . Maria former Federal Reserve chairman Alan Greenspan. More wall street week after this. Maria look at some of the big market events that could impact your money it, a short week on wall street. The markets close at 1 00 p. M. Monday and they are closed on the 4th of july holiday. Auto sales, construction spend and jobs report always a market mover. There are no notable earnings reports out next week. But president obama is traveling to hamburg, germany for the g20 summit. We are watching to see if the subject of ukraine comes up in the meeting with putin. The expectation is they come back after the holiday and get working on getting a vote to the floor on healthcare. Next week well talk about real estate in new york. Dont forget to tune in to fox news sunday. Have a good weekend. Property im bob massi. For 35 years, ive been practicing law and living in las vegas, ground zero for the american realestate crisis. But it wasnt just vegas that was hit hard. Lives were destroyed from coast to coast as the economy tanked. Now its a different story. The American Dream is back. And nowhere is that more clear than the grand canyon state of arizona. So we headed from the strip to the desert to show you how to explore the new landscape and live the American Dream. Im gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. At the end of the show, ill g