among those effected when procter and gamble had this faulty trade and sent it careening. a lot of people buy the big consumer stocks and pounced on that as a sign to them to sell issues that had anything to do with those issues. one thing fed on another and of course you have the images out of greece where protesters are angry about us -- awe steer measures that has the country in bankruptcy. the provisions to get out of it so bad, there's talk so many others will follow. that provides the setting and then it got worse and worse. for a while, the dow off almost a thousand points. so, could you attribute that all to one bad trader or bad trade? or could you say it sort of greased the skids? dagen has been all over it. >> we know we've never seen a stock market plunge like we saw in a matter of 20 minutes, starting at 2:30. the dow was down 998 1/2 points. that was an intraday record for the industrials. the blue chips lost about 700 points between 2:30 and 3:50 p.m. eastern time this afternoon. what were people selling? everything. stocks, corporate bonds, junk bonds, financial, the only thing that survived was the safe stuff. look how the market plunged. it was stunning, breathtaking, a panic, maybe. but procter and gamble and "fox business" reports this was a human error, a bad trade. they fell 23 points and that alone would translate into a loss in the blue chips and dow industrials of 172 points. we're looking into that. nonetheless the fears are rooted in what is happening in greece. the debt troubles there and maybe elsewhere through the europe. you had police pushing back the protesters with tear gas. this is -- as lawmakers voted for austerity passage. is tag go to translate into a banking crisis through the europe? people were not asking questions, they were selling. we'll see how this plays out overnight. >> i was thinking, if you had an errant trade or a bum trade or a dumb trader who did something like this in an upmarket, would it have had the effect it did in the volatile market, what some fear is a witch hunt on top of this sense, globally, greece is part of a contagion? in other words, would this have been as damaging without those macro issues? >> no. probably not, neil. not from what i have heard. we've seen the fear begin to set in and dig deeper and deeper into the psyche of investors in recent days and there's a worry about the problems spreading. you talk about greece, but then there's spain, there's portugal, there's italy and doesn't it make u.s. investors look themself in the mirror and say is this with a we're doomed to? >> we're going to raise this issue with the former head of the new york stock exchange? just a second, whether one bad trade can upset a whole cart. it says something about the cart. we'll talk to him about that of course, who supervised a lot of big market crashes himself. a republican south carolina senator on an agenda right now, jim demint is looking at what's been happening in greece. and senator, you know this bailout has been approved by the greek parliament. the protesters aren't happy but you're not happy because our money is involved through the international lending agencies for whom we play a big part, right? >> neil, this is another bailout. american taxpayer will pay to bail out greece. part of the jitter on wall street is everyone's expecting for the dominoes to fall. we're borrowing money to send to greece. there are other countries ready to fail. we've got at the time with can't deal with. yet we keep spending money on new programs, whether it be healthcare and most folks looking at the financial bill don't think our credit system will operate. we're doing a lot here in washington to make it hard for americans to have confidence in our financial system. >> i talked to a prominent investment bank c.e.o. today, and one of the things he told me, part -- i talked to him before everything hit the fan. one of the things that's contributing to the volatility and sinking feeling, particularly in financial stocks, is you guys are like the keystone cops and wall street doesn't want you being the cops. what do you make of that? >> it's true. no one here has the expertise to write a whole new financial system and credit system for our country and try to design derivatives and other things that we don't completely understand. people who sell them don't completely understand. we need a good framework of law and accountability and transparency but washington can't manage a credit system like this bill. i think the people involved in the financial system know it's going to hurt us and it's giving everyonitierings. we're going to see more of what happened on wall street today. >> senator, thank you very much. a crazy day. >> yes, it is, thanks, neil. >> a lot of people ask me in the middle of a free fall, what happens? what leads to the panic? i tell people a simple market lore i learned from a buddy of mine, people sell first and ask questions later. the former chairman of the new york stock exchange joins me right now. dick grasso. >> great to be here. >> we're dotting the i-'s and crossing the t's. what if it started with someone who put in a bad trade for proctor & gamble and it case cadeed elsewhere. do you buy that? >> i think it's very much a part of today's market performance. we can't put aside fundamentals. what is going on -- >> neil: could this have happened in a up market? >> as dagen said a25 point decline in proctor and gamble is worth 170 dow points. a 18 point decline in 3m -- if you add those together and realize how much of the market is programmatic, futures versus cash that, fact could have caused 25% of what we saw at the bottom. we recovered 66%. >> neil: but it's not a done story. believe me, i'm hardly the wet blanket. when i watched the sectors when we were in the middle of this, financial stocks down anywhere from 7 to 10%. you saw technologies, internet issues, biotech, health, consumers, durable all taking a hit. when that happens, and you're well aware of the mechanics, what causes that? does it automatically set a chain of events? >> it's equal to a fast breeder reactor. you get a bad print in proctor and proctor & gamble. unsettling news in europe a market we bounding 50% off the bottom. lots of people are saying correction, correction, correction, you get a spark in a dry forest and that is what can happen. >> what did this day tell you? >> number one, the imf and the european commission have major work today in terms of resolving the problems of greece and the neighboring countries in difficult but we have i think a marketplace that has rebounded robustly, we have earnings now coming in nicely. what -- >> neil: to nothing dis swayed you. >> whether it was 1987 when the market fell 22% in one trading day, realize 1,000 points is the largest to you point loss. >> neil: that was at 9% at the worst. >> the dow was down 22% one day. the mexican peso crisis, the asia contagion, 2001. >> neil: you have to be 3,000 points to be like that. >> exactly right. and it is important for investors to take a deep breath. ask yourself why are you in the market? if you're in the market to day trade, you had a terrible day today. but the shorts had a terrible last 18 months. so i would say to you, neil, you have fundamentals going on in europe that clearly are unsettling and that's part of the pullback. you have the strength of the dollar versus the euro but you have what could have been two stocks -- we don't know at this point -- creating 25% of that decline at the bottom this afternoon. >> neil: that's a good point. flip it around. people who are going to look at this and say it was a technical thing, all is right with the world. the correction didn't happen. it was a head fake. >> i wouldn't say dive back in. okay? there are some challenges, clearly. >> neil: do you think the market is rich? >> i think the market is reflecting as the market traditionally has the future. as we continue to hear better earnings reports and higher estimates for the s&p and companies that are growing top line, that were only growing bottom line by expense reduction, we're in the middle of an important recovery. will it be straight line up? of course not, it never is. >> washington wants to look at the very things that i call derivatives in this case but the mechanics and procedures and fast computer systems that lead to this sort of event. that's part of regulation. that's part of what they want to examine, a mistake? >> regulation is quality control. regulation is good for the markets, good for investors. you can't shoot the computers. you can't turn back technology. computers have to be used in a sane and, if you will, predictable way. >> neil: all right, dick grasso, i love -- when eliot spitzer scared everyone and they settled, dick said no, ike i'm not going to settle and i beat them and he won. i don't know what happened to him. >> don baron is here to give his take on this and reuters over there found -- rioters found a friend here. charley wrangle didn't get the message. >> a lot of them retired with full pension. i just want to clear something, congressman. >> please, you have giving a speech. some lunch. you hungry? yeah. me too. (door crashes in) (broadview alarm) (gasp and scream) go! go! go! go! go! go! (phone rings) hello? this is mark with broadview security. is everything okay? no. someone just tried to break in. i'm sending help right now. thank you. (announcer) brink's home security is now broadview security. call now to install the standard system for just $99. the proven technology of a broadview security system delivers rapid response from highly trained professionals, 24 hours a day. call now to get the $99 installation, plus a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now - and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. i feel like columbo. remember that series with peter falk? most of you are too young. he would scratch his head because everyone would agree it was in this case a bad trade, that someone punchedded wrong key or maybe a couple of keys or they had fat fingers like mine and hit several keys and what was to be sort of a one or two-point selloff for proctor & gamble turns into a 20 point collapse leading to others getting kicked to the can. 3m among them and everybody decided to the out of the dodge. the environment of greece and the concern of washington going too far. put the it in the pot and that was t i don't know, folks, i think the technical part there all valid, good, very real and on "fox business" we've been all over this and that was the case early on, but then to come by and say all is right with the world, even don marin, a man who used to head pain weber, he too is scratching his head and inside that head are much shrewder brains than my own. so it doesn't feel right, don. >> no, it doesn't and you're not wearing an old raincoat. >> neil: you remember. >> it doesn't feel right because it's a fragile environment. irving you have everything in europe and greece, the stark roaring back, people are nervous about that and every day if the paper, wall street being hammered in terms of reform and all the issues we know. any investor is looking for signs that something might go wrong. when you get something like this, there's a reaction and in this case, an overreaction but it does reflect in part at least the three uncertainties. >> neil: if we knew as this ensued, whatever the bad trades, all the other issues were there. greece, a meddlesome washington was there. spending more than we're taking in not only in this country but all countries. all those basic issues were still out there. do we ignore them and say all is right with the world? >> not aware. we're aware of the issues. we don't know how any of those three will come out. >> neil: is it a sense the correction is still coming, this just wasn't the day or -- normally crashes -- you're a student of them. we talked in the '87 one, that was portfolio insurance and it wasn't the protecter that it was supposed to be. everything fell on top of one another. >> but what triggered that was the merger, also. the arbitrary guys had the deal done then undone. >> neil: that were later in '89. >> that's a problem. >> neil: could we see that again or would this have the perverse effect of making people feel all it right. >> i think what is says is two things. the market actually worked. if this was an error, the market worked and stayed open. it was a tragedy and people will get hurt. the other thing -- >> neil: but it would have taken a drop-off of 1500 points and then they would have stalled trading. then it would have been bigger. >> then it would have been bigger. but the public entitled to a full explanation how it mistake of this scale can happen in today's system where we think there's so many checks and balanceses. by the way, it gives washington and added incentive to put into place tough controls. >> but you're in washington watching this and putting through the goldman guys, and you say we forget about this nonsense. >> so far this is focused on debt and not equities and derivatives. is shows that equities worked and they're the most regulated -- >> but son congressmen will say they can scare the you know what out of folks. >> it's a hunting license. that's why i said explain why this happened, how it could happen, why checks and balanceses didn't stop it more quickly and what you can do quickly to make sure this kind of thing doesn't happen. stuff like this is always going to happen but at this magnitude, we can't afford too far it in the markets. >> neil: a good congressman will say we lost a trillion dollars because of computers screwing up. we have to watch their computers. >> he's going to say that but he should say this is a big liquid global market in witted it's a weird thing. people take the value of 100 shares of stock and attribute it all shares. we have a responsibility to monitor how transactions are to know. in this case the system failed but for a technical reason. there are real uncertainties about this market. no question, that's why it went down as much it did. the system works but it had a glitch today. >> don, you immediately got the columbo reference, which is pretty cool. a short time ago i stoke with democratic congressman charlie wrangle about the mess. >> why do you feel they're unfairly targeted when -- everyone's going to pay higher taxes and the union members have just -- >> listen, all i'm trying to say is whether you're talking about united states or greece, it's the people that manipulated the fiscal system in greece that caused the market to collapse not only in greece but through the europe and in the united states. >> neil: congressman, no one manipulated a government that was spending more money than was taken in. by that definition, you're part of the government doing the same thing, right? >> this is not so. it's not that we had invested all our money in goldman sachs. it's clear -- >> neil: that's a small part of this. you know there's a cradle to grave entitlement system in greece that's in -- em em bolding peopling. >> listen, if you're going to -- if you're going -- you're not -- you're giving a speech. what i'm trying to say is bernanke says because of the fiscal collapse of greece is connected to several large u.s. banking firms, including goldman sachs and that's what caused it. if there's pain, it should be equally shared and certainly those people that enjoyed maybe too much of a liberal subsidy situation, they could not pay for the mistakes of the banks. >> neil: understand. but to be fair what ben bernanke said is many firms might have gunned the system to take advantage of the situation, that is a government that was providing more in benefits than it was taking in in money and did so year after year. decades after decades. >> that's not what caused -- >> neil: i want to finish. >> that's not what caused collapse. i mean there is a question how far you should go. >> neil: do you think there's a come to jesus moment here where governments, regardless of their relationship with u.s. brokerage houses, have spent more than they're taking in and are looking at the reaper? >> listen, i'm not prepared to talk about coming to jesus at this point in time. i am able to say that one of the largest programs that we have that people attack is being a broaden entitlement is social security. no one can deny this program removed our older people from poverty and i think that we know that when you're old and you can't work, it costs a lot more money to help people along that be to be able to say that they feel secure. take medicare, another program that we will be remedying with a insurance bill and bring it into solvency but the fact is people who can't get healthcare, which is true from greece, cannot work and ultimately cost more to the society, not just in lack of productivity but the cost of being involved in serious conditions and complicated surgery. so what i'm saying is -- >> neil: all good ideas but how do we pay for it? everyone things the elderly should be protected. it's good to provide healthcare to everybody. but what the devil in the details is the criticism of you guys, republicans an democrats, is that you haven't figured out how to pay for it. >> i'm telling you that if you read the economists and listen to the congressional budget office i heard you quote earlier, they say in ten years we'll be solvent as it relates to medicare. nobody doesn't believe we can't have a fixed social security. whether we're dealing with age or -- >> neil: wait a minute, i do read the economist. this past issue they talked about what's going on in greece. and they talked about the debt to equity, in other words how much is poured in versus how much is taken out and the u.s., within 20 years, will be looking at ratios like greece. do you agree? >> i'll tell you this, all the economists that i have read, and it hasn't been challenged, attribute our fiscal deficit crisis not to the one clinton left to bush but the connection between the dramatic cut in taxes is responsible for the deficit, this with the fiscal crisis we're facing, you're trying to blame -- >> neil: i'm not red or blue, i'm green. i look at the green and i see it frittering away. >> find out. >> neil: what i raise with you is what i raised with republican counterparts before and both parties over many years, do you thing washington can continue going the way its going without someone realizing the well is running dry? can you put more money in the well by raising taxes or just cutting those benefits or do you think you're going to have to do both and dramatically and soon? >> well, i don't think that the president ever took taxes off the table. but what we are talking about is increased productivity, investment in education. >> neil: understood. >> what we are talking about is increasing trade. >> neil: investment is spending. >> what we're talking about is making america stronger, more competitive and in the large sense, being able to export more than they import. >> neil: wait a minute, i want to know, charlie, you are the it guy. i hope you're back running the house and -- when you look around and just say guys, here's the skinny, we are in a heap of trouble. and we could look at raising taxes on the rich after a while that goes down, we look at scaling back benefits for the rich, or we'll redo everything, scale back on spending, and hike the taxes. what wins out? >> well, you say hiking taxes. i put together my bill in terms of tax reform and it didn't cost anything because we reduced corporate tax to say 28% -- to 28%, it raises revenues when you cuts the loopholes, we have people overseas. >> neil: are you going after companies? >> no, no, of course we have to take a look at our budget. >> neil: would you raise taxes on people under 200,000? >> of course not. these are people working every day, producing for our community. >> neil: are you for a value added tax? >> the president says everything is on the table. >> neil: is it on the table for charlie? >> no,i it's not on the table until we can see that -- >> neil: the president says more that be over 200 crowd. that would effect everybody. >> it would affect the people at the low end of the income tax scale and i don't think it's fair for somebody that when your secretary is paying more taxes than a billionaire, there's something wrong with the secretary. >> neil: unless the secretary is earning billions. i'm kidding. while i have you, you stepped down at head of house ways and means while they sort through your financial deals and some argue you get sweetheart deals. why did you step down? >> when the republicans stopped talking about healthcare, climate control and started talking about me, weather wheree leadership went they asked about what about charlie wrangle. i said let me step town so we can get healthcare. >> neil: when due step back to the post? >> as soon as the ethics committee completes its work i'll be back. >> neil: ny any indication? >> it's been 18 long months. know haven't. there's no charges by anybody except allegations and i turned that over to the ethics committee over a year and a half ago. >> we got hundreds of emails on that so i felt obliged to share that with you on fox news for all of you who don't get "fox business," which if you do not get ... >> demand it. >> that's routine on that wonderful channel. all right, we're also routinely on both negotiation examining what's going on in greece because something else is going on in england here. and big election going on that there that might topple that fellow on the right. do those flames and protests on the left have anything to do with what could be a political earthquake in her majesty's kingdom? a ♪ we created our college of business and management... after collaborating with business leaders. we wanted our curriculum to match market needs, preparing you for today's most sought-after careers. in fact, we have not one but five specialized colleges, offering you bachelor's degree programs that... are both relevant and highly maetable. devry university. discover education working at devry.edu. man, ain't that something, the selloffs blamed on someone pushing the wrong but the and worse news from greece. what about the big news in another european country that could trump all those. great britain. voters deciding if they want to keep the liberal party or kick them out and a lot of the big spending policies voters are tiring up there. maybe kick off a global movement to cut off the government gravy train period? we have a conservative british politician, maybe much the european parliament and first to take the prime minister in task to person. that's what he did and called him on spending and big government policies that made mr. hannen a media sensation. daniel, do you know anything about how elections are going? >> it's hard to say. i just come off from knocking on people's doors and encouraging them to vote so i'm having a chat with a candidate and -- i have a good feeling about it and i'm optimistic but the first exit poll will be in about 25 minutes. >> you guys do it in a more civilized way. we poll on the minute here in this country. but the latest poll i have seen indicated that the conservative party, who was doing well or that in mr. cameron, their leader, had stretched his lead a tad. that doesn't mean anything. was there a sentiment or were you getting a sense that the public was coalescing around more conservative views? >> definitely. we're going to win in a sense we'll get more votes. because of a quirk in the way the election system works, even if we're far ahead, that accident give us as many seats as others. we have an electoral seat with a bias against the conservative party. but people only have to look at greece to see the consequences of leaving unaddressed excessive borrowing and spending. our deficit will overtake yours next year. yours isn't far happened. what you see is what happens when you defer necessary action to bring overspending under control. >> neil: is there a sense you're getting, though, that everyone's open to the painful medicine that would be prescribed --? greece they're rioting because benefits might be scaled back or they can't retire as early or taxes will go up across the board. if something like that were to be prescribed for britain, how could that go? >> it's not going to go down well. nobody like to pay more taxes or told that government benefit he's getting will be reduced or taken away. but what you see is if you postpone these decisions and push the reckoning away, it gets worse when you face it and the ax falls harshly on the lowest paid. if greece tackled this 15 minutes ago it wouldn't be in the mess its in. it greece kept its currency the markets would have corrected years ago. one thing we have going for us is we stayed out of the euro and suffered devaluation in our exchange instead of suffering in our jobs. >> it's interesting the euro is collapsing at a 14, 15 month low today. does this cinch the deal that britain is not entertaining this at all, joining it? >> i think that deal was probably already clinched. if there was any doubt, this is now beyond doubt. in the way things are in politics, the people against getting the credit and the idiots for it are trottedded out and listened to as if they're wise forecasters. what's new. >> daniel, always a pleasure. thank you. all right, when you look at violence there and you wonder could it happen here, well, for one thing, our people are pretty strong but we have strong people looking at our backs. and these two next gentlemen fits the bill. joseph mcguire, lieutenant jason redman joining me now. they were ring the opening bell this morning at the corner of wall and broad at the new york stock exchange. who knew they were going to create such financial havoc. but they're spreading the word about warrior fund which helps navy seals and everyone wounded in combat and they know a thing or two about that. you were talking how you got your wounds in battle a couple years ago in iraq. >> that's correct. we were operating inial am bar and my squad got into a large engagement with a slightly larger force a couple of guys got wounded, including myself but we in and fought back and ey came home. >> when you look at that and good luck in your continued recovery, i understand you have had so many operations you can't count. but a lot of people say we're going to be greece soon, people rioting everywhere. do you think that will happen here? >> i like to think that the foundations of this country and the caliber of the people in this country will preserve what we have and people won't get to that level. through education and the greatness of this nation, i think that we're all smart enough and level-headed enough to rationalize our way through these situations. >> neil: admiral, besides kicking off what seemed to be a meltdown today for which i'll forgive you, do you look at -- there you are at the new york stock exchange, and there -- all of you heroes are there. and for all those guys and us and people like us who report on it obsessed with money and who is doing what, you guys just don't seem at all remotely into that. >> i don't think that's true, neil. the thing that makes america great is our economy. we have only be a super power longs we have a robust economy. was wonderful to be with the people lubricating the wheels of the economy. but we understand we need the support of the american people but resources to do our jobs and the american people have resourced the naval special wear fair and we would not do that without the robust economy and the work on wall street. >> neil: we don't to want to get no political points but web you look at the globe and people are going nuts everywhere, they're going to be rioting in the streets everywhere, i'll ask you, do you see that happening here? >> no, i don't. the one thing i believe is never bet against the american people. i think we're not devoid from what is going on in greece and with the euro but i think that the american people are smarter than that and i have every confidence that would not happen mere. >> lute, -- lieutenant, when you come back after the wounds and pain, you're not bitter in the least, you don't complain, you don't whine. how do you do that. >> i'm a blessed individual, i'm thankful for i ever day i was given, especially after that night. you learn how short life is so. on the flip side, on the warrior side, war at its basic level is one man fighting against another and with all the technology and our capabilities, ultimately no martenots the planning, somebody will get wounded and people get killed. we do everything we can to mitigate the risk but sometimes it's part of the job. for me, it was part of my job. now i drive forward and stay positive and they put humpty dumpty back together. >> neil: indeed. continued success, a slighter older man, admiral, good seeing you. thank you for all you do. you allow guys like me to just read a prompter. >> thank you, neil. . út@@@@p@ >> neil: they're planning more sited ins and demonstrations that they argue start peacefully in greece but today, quickly turning violent. you always hear talk as well. debating pros and cons, whether that festers here. in other words a lot of folks, government workers, union workers told they have to cut back in places, even keep their pensions, the pension provisions will be frozen for three years and new workers coming on in the case of greece. can't retire at 53, instead 55. not too onerous to us but it was enough to riot there. what if it happened here? what if we went after government workers or union workers or workers in general and said time to give back? democratic congressman peter welsh on that. what would happen? what do you think would happen? >> you know, it's just a totally different situation but actually, it shows the importance of us trying to work every day to get our economy as strong and possible and people back to work. that's why today i'm delighted we passed in the house on a bipartisan basis legislation to help homeowners insulate theirs homes indiscreet jobs. >> you did that without the money to pay for that. >> no, this has to be paid for. there's total commitment to that. my preference is we do it with unallocated stimulus money but the absolute commitment with the pay as you go legislation. >> neil: isn't that the problem in greece, all well-intended programs across the board, but without money in the bank -- they're running huge deficits, as are we, and we're right with them. >> the point you make, yes, if we passed this and it went into law and didn't pay for it, then your concern and criticism is valid. we have authorized it and indicated broad support. we have another hurdle, to meet the cavuto test, to find a way to pay for t i'm going to come back and tell you how -- >> neil: why not pay before you give itty. >> you can do it either way. >> neil: i think it's better to pay before it give you it. >> this program is not into law. it won't be until we do the paid for and oftentimes when we have a number of proposals, we have to put them together and find way to pay for to. we're working on that. >> neil: we'll watch. i hope you to. karl rove on what he makes of this and what's going on around the globe after this. it isn't very noticeable. in fact, it's very hard to tell whether or not you have it on. - need another reason to call? miracle-ear hearing solutions give you total peace of mind. every model is expertly crafted to the highest quality standards and is now backed by an unprecedented three-year warranty and a risk-free 30-day money-back guarantee. plus, the exclusive miracle-ear experience provides you with ongoing follow-up care for the life of your hearing aid. call for your free hearing and video otoscope test or your free better hearing kit. call now. one follow up on our note about the white house press secretary, robert gibbs and his comments about this program and me. he heard from mr. gibbs, not directly but here's what he told the white house press corpse. >> did i say this to neil? i apparently had the wrong fox show. there were two references on fox & friends to the spill. sometimes i get it all mixed up. >> neil: now, i didn't want to accuse mr. gibbs ever being mixed up today but for the, we want to clarify that point too on behalf of our colleagues and contributessers on fox & friends, i assume he's referring to dana perino from the bush white house who appeared on fox and friend and raised the possibility of sabotage but she never implied such sabotage, if it happened, was connected to the obama administration. she presumably avoided the responsibility of sabotage by terrorist and never connected the white house to the possibility of sabotage. didn't do it. didn't say it. as for the second reference on fox & friends, i think or i can only assume that mr. gibbs is referring to my colleague, eric bolling of "fox business," who chimed in the conspiracy theorist would say maybe they let it leak for a while and then addressed the issue. as you can see, neither bowling more perino never came close to suggesting the administration had done anything like that or had anything to do with what gibbs described as the deliberate nature of the spill being set. we'll put that up on our website for those of you following the back and forth and for the record, the invitation still stands. feel free to come on any time you want, robert. we appreciate your comments but still, for the benefit of my colleagues and friend, i want everything out in the open and the invite remains. all right, now, to wall street, what was going on today. if you look at the final numbers, we can look at the big board, 348 -- wow, a big hit. it had been a thousand points add a lot of people say we experience add meltdown. didn't happen a couple of technical trade issues and maybe a guy hit the wrong key. i bet they were watching at the white house just like we watch me. karl rove, former chief of staff, author of courage and consequences. how closely do you guys, when you're in the white house, watch these things where the markets free fall? because it happens. >> look, it -- the inside the white house you watch -- somebody in the press office watches, people are sharing information and when you go to your office there's a television set on. this white house i suspect is no different than the predecessor, you're constantly living in a flow of information and i suspect today there were words exchanged with the national economic council and economists from the cea and everything is trying to figure out why this happened today. >> without getting into today, there are a lot of folks waiting for that next big hit, whether it comes in one fell swoop, technical glitch or not, but that it will come. that's the nature of markets, they did is in '29, '87, '89, '90s with the latin falloff. they do these things. so how does the white house, or government prepare for that o is it a hands off policy? >> well, you're right, it's going to happen. so you leave it in the hands of treasury. you don't want the white house worried about political implications of markets adjusting. the want the secretary and treasurery and federal reserve thinking about what the government ought to do but markets are markets and they rise or fall based less on what the white house wants to have happen then the fundamentals of the american economy or as today, as you said, it may be today, a technical glitch because of a large trade but we'll see when it gets sorted out. it seems to me something unusual is going on. i picked up the wall street journal to a spat of good news about the fundamentals, profits for the s&p and the rise in not only the -- margins were good but we're seeing increased spending so that leads you to believe we would have a good day on the market, not a disastrous day or a bad day. >> you mentioned washington and how it should look at the chart of the day today when we had the free fall. i could see intern pricing congressmen saying we've got to control these guys' computers. when we do financial reform we have to get a handle on traders who hit the wrong key. >> isn't this interesting? we have a giant financial regulation bill that is coarsing through congress and it has not a single paragraph or sentence or phrase regarding the regulation for the going forward of fannie and freddie, to very large, if not the largest financial institutions before this began to played a critical role in turning a minor dip in the business cycle into a international catastrophe and rerush to regulate car dealers or dentists that's a need in response and we leave fannie and freddie alone. some people will follow the dictum of rahm emanuel you'll and never leave a crisis go to waste. they'll find any excuse to expand the power of government in things that have nothing to do with the problem. >> neil: we're going to get financial reform. i think the train's left that station, right? >> yeah, and look there are some things that auditing for reasonable are -- ought for discussed but the idea we're going to somehow solve the problems brought on by fannie and freddie by regulating dentists and automobile dealers is ridiculous. >> depends on the tenticity. always good seeing you, karl