a bad market that we were seeing throughout trading today so what we re looking at going forward. we are talking about a bear market when we are down from the heights by fifteen to twenty percent and we are by far not there yet at some point today we did see the market drop by ten percent from the highs that we saw and of generated so we call this a correction but what we shouldn t forget is that a lot of the economic growth a lot also of growth that we see with corporations who are publishing pretty good earnings results in the past couple of days was bought with debt so a lot of financing at the credit markets and if we might see a certain overheating of the economy if rates if years of corporate bonds of treasuries should continue to increase that will dent will make that more expensive and that actually could be a problem for the market ok so that could be an opportunity for the bears on the horizon at the new york stock exchange and you very much for that and looking
what has deputy press secretary hogan ghibli is not concerned. the fundamentals of the american economy are really strong. scene 7000% increase in the stock market. we heard on the obama admin attrition that 1.9% gdp was a new normal, that manufacturer would never come back to our shores. all of those things have been turned around under this president s policies, not to mention that gdp is hovering around 3% for the first time in the better part of a decade. melissa: two very important things to keep in mind. this is a reaction to good news, not bad news. so normally we see the market drop because you see growth. you see growth out there and that means that the fed is probably going to tighten up. we might be seeing some inflation out here. because of good things going on. here s the thing to remember. the company, the stock that you like a week ago is a lot cheaper now but profits are still going out. it s a better deal because profits are going up. if i was allowed to buy a stoc
chinese, the japanese, who are the two largest foreign holders of american debt to continue buying it at the rate when you re borrowing $20 trillion, the difference between historically low interest rates and 5%, 6% interest rates, is crushing for the country. it adds so much more to our deficit. it s a bad cycle. because the debt, you have to buy more of it and it gets more expensive. so it s a two-fer, one that works against you. people begin to lose confidence in our ability to perform, to manage the dollar, thence that s again a really bad cycle. it s a bad cycle. ed idea that a time of process parent, we re going to have a $1 trillion budget deficit again this fall is something that we should all be really worried about. so president trump did not publicly comment yesterday on the market drop. but the white house did release a statement. saying the president s focus is on our long-term economic
strengthening u.s. economic growth, historically low unemployment and increasing wages for american workers. the president s tax cuts and regulatory reforms will further enhance the u.s. economy and continue to increase prosperity for the american people. let s get more on the market drop and bring in willem marx. how are stocks overseas reacting following yesterday s sell-off here in the u.s.? i know that it had a pretty large impact there. yeah, it did. not just here in london, of course. we can start with asian markets in particular. we look across that region, they have now closed their trading in much of asia. they ve been talking about an almost 7% drop in noise and is down, closing 4.7% in japan. at the close of the day s trading. you can see that some pretty striking numbers here in europe, as well. we ve got the ftse 100 down more than 2%. the debt ra dax in germany down
coming up at 5:30, former treasury official and morning joe economic analyst steve ratner is going to join us on set with his analysis on yesterday s market drop, as well. and the u.s. supreme court announced it will not drop a pennsylvania court ruling for the state to redraw congressional districts for the 2018 election. justice samuel alito denied requests for a republican lawmakers for a stay on an order to redraw the district map that was determined to be unconstitutionally drawn to discriminate against democrats. the original ruling gave the state legislature a deadline of of this friday to pass a new congressional map and submit it to governor tom wolf who was, until february 15th, to approve it. according to the philadelphia inquirer, the legislature s two highest ranking republicans indicated that they will attempt to comply with the ruling but may pursue further legal action. if the legislature fails to make a new map by the deadline, the