Alltime high. The storms dropped more than 50 inches of rain on the houston area. At least 39 people are dead. More than 30,000 will in shelters across the state of texas. Harvey also making its presence known at the pump. Gasoline prices spike as one quarter of all Refining Capacity is still shut down. President trump making his case for tax reform calling it a once in a generation opportunity. The president reiterating his call to slash the Corporate Tax rate from 35 to 15 . Provide tax relief to the middle class and bring back overseas corporate profits. Good to see both of you. Dom, we are waiting for specific details on this. Steve mnuchin promising details in the coming weeks. But thats 5050 now that it gets done. Dagen in addition to raising the debt ceiling, keeping the government open, putting a budget in place and getting tax reform. They are going to have to deal with fixing the Flood Insurance program. They had a lot on their plate. They havent gone the much done so far. The idea that they want to get all these things done and get agreement on a tax structure Going Forward is hard to believe believe. Dagen i wonder if this doesnt give congress a pass. If the economy is growing, they dont need to get to it. The six people who are going to hammer this out are meeting september 5. But thats just to establish a framework. Its where the starting point is. We know that President Trump is talking about this simpler tax system and lower corporate rates but we dont know any of the details. Something they all read about and heard about this idea of perhaps taxing the 401k, peoples retirement incomes or taking away the mort gaining deductions. These are all floaters. Floating thing out to see what the consumer will deal with and what well accept. I heard no one say 15 is doable. Not one person. As you mention, 35 is where the u. S. Stand and there are countries, ireland at 15 . So we have seen a lot of Tech Companies set up shop in dublin. Its an anglo society. There is a young workforce. Gateway, or cal. All you do is go into that airport and you see them all there. There is a big push to get the jobs back here. I still want equitable treatment for Small Business owners. Its something donald trump talk about the president early this year. You tax those individual who are normally taxed at the personal. They get tacked on the personal level. They get tanked at 39 . So these are really significant issues that could add real value to the Economic Growth. We saw the job numbers today. They were okay, they werent spectacular. Dagen dont go anywhere. More wall street week after the break. Announcer the biggest names, the most of influential mind. Mind. Its a highly contagious disease that can be really serious. Especially for my precious new grandchild. Its whooping cough. Every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. Istart at the new carfax. Comar. 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If you extract all the abilities to deduct, we are not as bad. But we are still in the top third of the highest tax right countries in the world. If we had a tax rate that was competitive or even more competitive than most of countries, it would bring businesses back here. It would bring Foreign Companies that want to be here. We have an advantage most of companies dont have. We have the Cheapest Energy of any major economy in the world. Natural gas is a third of what it costs in europe and japan. Its a third of what it costs in china. So people would love to be here. But when you translate the cost of taxation, and it was some manufactures im told, they cant come here because they cant find the labor. Here we are, we talk about how we need to create jobs. There is also. The narrative is we cant find enough qualified workers. Thats not being discussed enough. So what we need and i hope this administration focused on it. We have to have governmental policy for retraining. Education has not been discussed enough. Maria we started this conversation talking about the anemic growth we saw in the first quarter. Tax policies are something people agree on to move the needle on growth. Whats most of important . The rate . Is it the corporate rate thats most of important in terms of tax reform . I think its a huge deal to take it to 15 . Even 20 would be a big deal. Its hard to see how we get 15 unless we do huge deficit spending. Maria do you think well see tax reform in 2017 . Thats what i feel is holding up the markets. You said you had a wall of money. Do you think that collapses if it doesnt happen in 17 . I think the u. S. Markets are vulnerable for a 10 correction. I dont think thats an issue. But thanks reform is really hard. We found out healthcare is really hard. Im not sure to suggest whether it will ultimately come in 2017 or 18. What i want to see is a real path. If we could see a real path, if we see a real path having tax reform without massive deficit increases, if we see a path that can help the lower and middle class in their taxation. It cant just be Corporate Tax rate reduction. We have to find ways to help people in need. Dagen that was blackrock chairman and ceo, larry financial. Allen greenspan was famous for his exuberance moment. He was asked if he saw any difference between todays market and what he saw 20 years ago. There is no irrational exuberance that i can see. Its the opposite at this particular stage. But we still have the 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 any pace that could be turned irrationally exuberance driven. Thats good to know. But at the same time you looked at socalled wealth effect and what it means for Economic Growth. In terms of the wealth effect today we were seeing the stock market up 1 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 . Interribly it will. Whether they like the or not, thats the way they behave. People always behaved this way. When you get stock prices moving up or Capital Assets moving up, it impacts consumption expenditures. Maria so far the consumption has been weak. You have the Retail Sector that is totally bifurcated. Malls going out of business. How do you characterize Economic Growth today and what are the chances we get to 3 in the near term . Steven mnuchin is betting on it the next couple years. I think the Second Quarter will show a 3 change but its a little deceptive because we are having a problem with the seasonal adjustment factors between the first and Second Quarter. As a general rule i tend to average them. And the average is 1. 4 and say 3. 0. Thats not a terrific number as far as the gdp is concerned. But it in turn is exactly what you would expect at the levels of productivity growth which now have been experienced for a number of years. Maria dont go anywhere. You know how painful heartburn can be. For fastacting, longlasting relief, try doctor recommended gaviscon. It quickly neutralizes stomach acid and helps keep acid down for hours. Relieve heartburn with fast acting, longlasting gaviscon. And helps keep acid down for hours. Your parents have been ittalking about you for years. Theyre all about me saving for a house, or starting a college fund for my son. Actually, i want to know what youre thinking. Knowing that the most important goals are yours. Its how edward jones makes sense of investing. Looking for adventure this labor day . Holy smokes. Oh man, thats pretty intense. Look no further than chevrolet. This is a fast car. I feel like i left my soul back there. Wow. This has power head to the chevy labor day sales event and ride out the summer in a new chevrolet. Current chevy owners can use labor day bonus cash to get a total value of eleven thousand six hundred dollars on this silverado all star. Or, get 0 financing for 72 months on all tahoe and suburban models. Find new roads at the chevy labor day sales event. Dagen the Trump Administration will take on the fall agenda with a few fresh faces in the white house. John kelly facing the task of bringing stability to the administration as it tries to get tax reform, Infrastructure Spending and a budget through congress. Maria bartiromo went oneonone with leon panetta. She asked him for his take on john kellys role as chief of staff. I like john kelly a lot. The best thing to know about john kelly is he is first and foremost a marine. He dedicated his life to public service. Committed to whoever is commanderinchief. And he believes deeply in disprinciple and a chain of commands and a process for Decision Making and doesnt toll rate chaos very easily. I think hes the right guy to try to get the white house back in order. The real question is whether the president gives him the room to make it changes that will be necessary to improve the operations in the white house. When you were running the Defense Department and cia at omb, there was a very different relationship. And the republicans will say we dont have any participation from the democrats, not on healthcare, not on tax reform. How does the country move forward with such divisiveness. Maria i think i just touched on one of the fundamental problems we are facing in our democracy. If you ask about National Security. One of the big threats to National Security is the dysfunction in washington. The inability of democrats and republicans to sit down and Work Together on issues. The inability of the president and the leadership of the congress to Work Together on issues. The result is we are operating by crisis. I often tell the students in a democracy you operate by leadership or by crisis. If leadership is there and willing to take the risks associated with leadership. It takes risks. I understand that. But its leadership. Thats what we elect to the congress and to the white house. We hopefully elect people who are leaders who are willing to take those risks. But if that doesnt happen, we operate by crisis. Right now on almost every front we are dealing with things by crisis. The problem is when you do that you lose the trust of the American People and our system of governing and thats dangerous. Maria we are having a debate about healthcare. Its a fight that went on in washington. Now they are talking about tax reform. You were president bill clintons chief of staff. Bill clinton was a moderate. He wanted to take the country forward and he wasnt afraid to move across the aisle and get ideas from the right. It feels like the Democratic Party has been hijacked by bernie sanders, and elizabeth warren. I think both parties have been hijacked by the extremes. Thats bent problem concerning the parties ability to Work Together. The extremes have taken over the party base. So they feel to survive they have to cater to their extremes as opposed to working to solve problems. Dagen Regulatory Reform another one of the Trump Administrations top priorities. Maria bartiromo asked ben bernanke about the importance of reevaluating regulations that were put in place during the financial crisis. Its always a good idea to look at regulations. There are a lot of regulations out there. Its always a good idea to look at them and say are they accomplishing what they are supposed to accomplish . Can we make them smarter . Can we repeal those regulations that are not carrying their weight . And that being said, i think that its very important that we not forget what a bad experience the financial crisis was and how much damage it did to our economy. So a lot of things in dodd flank have the purpose. Making sure we dont have a situation like that. So if we try to reduce the Regulatory Burden on the small institutions that didnt contribute to the crisis so much. Maria one of the issues bankers say is the fact that doddfrank, some of the rule making didnt hold as much capital. So they werent learning. I dont see that. Capital is the best way to make things safe. If they have enough capital they can absorb losses without coming close to failing. And incentives are better. If they have capital necessity are investing their own money. They will have incentives to do it bert and be safer. Having an adequate level of capital is important. We had our banks get much better capitalized and they are safer and soundser than they were before the crisis. Compare us to europe where they had difficulty getting the banks on astounded basis. In terms of lending i dont believe there is any evidence that higher capital impeded lending. Lending has been solid. There are a few areas where its taken some time. Mortgage lending was slow to start. But the housing sector is coming back and mort gang lending is coming back. Small business lending has always been a problem. Large banks dont necessary lire want to take the effort to make a loan to a corner pizza store or other Small Business. But generally speaking overall lending has been 23569 forward in the economy. I dont see any signs high capital is choke off the economy. Maria what would you like to see change in doddfrank . I would start with the small and mediumsized institutions. The goal of doddfrank was to address the risks presented by the smallest institutions. The smallest institutions were hit by as collateral damage. So thats an area to look at. A number of regulators, including outgoing fed governor talked about the volcker rule which is intended to prevent banks from doing proprietary funding on their own accounts. Maybe there is a way to make the stress testing of baingss to assess how much capital they have during a tough period. There are ways to maybe make that less onerous for banks. Its time to rethink whats possible. Rethink the experience. Rethink your allergy pills. Flonase sensimist allergy relief uses unique Mistpro Technology and helps block 6 key inflammatory substances with a gentle mist. Most allergy pills only block one. And 6 is greater than one. Rethink your allergy relief. Flonase sensimist. Dagen here is a look at some of the biggest market events coming up next week that could impact your wallet. The markets are closed for labor day. But later well get the beige book, jobless claims, wholesale trade and consumer credit. We are waiting on numbers from barnes noble and kroger. On the political Front Congress back in session tuesday. Tax reform expected to be the top agenda item. That will do it for wall street week. Thanks for watching us. Maria bartiromo will be back next week. But first bob massi property man tarts right now. Time life. Archie, youre home announcer just hearing the theme song brings you back. Boy, the way glenn miller played songs that made the hit parade announcer to one of tv guides top 5 shows of all time. Edith, will you stifle . Archie, were all hungry. Will you stifle . the number one show in the country for five years straight. Get our of my chair, meathead announcer that introduced us to americas most loveable loudmouth. gloria i brought you some flowers. I thought you was gonna bring me beer . announcer and now the bunkers have finally come home to your home. edith oh, archie laughter