you know, clinton has been pushing this thinking that the wealthy should pay for. those are part of her proposals. indeed with her tax returns it shows just that. clinton paid an effective federal rate of 34.2%. state, local income rate of 9%. add up you get 43.2. the clintons donated 9.8% of their adjusted gross income to charity. they're trying to push this number, campaign, since 2007, the clintons have paid $44 million, $44 million in federal income taxes and also in that time frame, some $15 million that they have donated to charity. with it, hillary clinton has also put out a statement, which reads, and i am quoting here. families like mine that reap rewards from our economy have a responsibility to pay our fair share. and it is not just the right thing to do. it is also good for growth. so we had hillary clinton yesterday, in the detroit area, once again lay out her tax plan which she talked about the wealthy need to pay their fair share, "buffett rule." if you make million you need effective tax rate of 30%. if you make over $45 million there should be a 4% bump. she is paying 43.2%. as for tim kaine, by the way. they released tim kaine and his wife's tax returns. much lower than the clintons. obviously they do not have the massive wealth that the clintons amassed, since bill clinton left office. his effective rate 25.6%. with all of this, connell, now comethe renewed pressure from the clinton campaign, no doubt it will come, for donald trump to release his there is a lot to go into. let's bring in douglas holtz-eakin. there is a lot of politics there. she is putting at a statement that says, paying my fair share. part of the family statement. not just the right thing to do, but it is good for growth. is it? >> no. i think this reveals a lot of the problems she has in her economic policies. none of which will deliver any growth. i think is the single, strongest critique of what we've seen out of hillary clinton so far. this is an economy has a long-term growth capacity of 2%. that is way too low. means that the standard of living doubles every5 years instead of what we're used to. we need proposals to increase economic growth. what we've seen out of clinton campaign so far is nothing like that. connell: i also thought it was interesting in blake's report, he says the campaign is clearly pushing out this narrative and story since 2007 the clintons have paid 40 some million dollars in taxes. $43.8 million in taxes. they're pushing that out. they want people to talk about, this is good thing we're paying all the money in taxes, as quote, unquote, wealthy family in the company. shouldn't trump campaign have counter to that? just the opposite, we want to cut your taxes for more money for wealthy people to put back into the economy. >> they should be prepared for this. this is all part of running for president. the fact that the 2015 return coming out now, what they're saying bit, all something they prepared carefully, no doubt about it. question we have for a long time whether the trump campaign anticipated this there has been a lot of pressure releasing his returns. he is not done so far. i think pressure will increase, not decrease. connell: right. >> obviously you have to move away from the personal to what do we learn about economic policy from this? one of the things we learned from the clinton campaign, she is happy to have higher taxes. $1.3 trillion, but she will spend 3.5 trillion. there will never be enough paid in to cover the costs of what she intends to do. connell: that is the issue, right? that was the issue this week with her economic plan. issue somebody like you had what she said, right? how do you pay for this stuff. >> look, the next president will inherit from barack obama a budget that will display $9 trillion in deficits next 10 years. will lead to trillion dollar deficits every year within the term. she said nothing how she would fix that. she created dozens of new entitlements and 2.3 trillion in deficits. connell: anybody care about debt by the way anymore? trump -- i know you do. are you running? are you the new, seems like every day this week you're the next guy getting in? you're like mcmcmullin getting in the race? do you have announcement you want to give us today? seriously. trump was, did interview. good time to borrow. rates are low. anybody care about the debt. >> we have seen precious little caring about it. honestly we have two candidates running like democrats this year. nobody is running like a traditional republican. someone who cares about fiscal responsibility to the next generation. good housekeeping, getting books in order. people are saying we will tell you what you want to hear. don't worry about what it costs. connell: we'll talk a little bit more about trump's economic plan he talked about this week as well. to be fair to him, wasn't their more pro-growth message in there, tax cuts? did you like that kind of thing? >> i think that's the single most important contrast. he is interested in growth. wants to pursue better growth. it is our top economic problem. she has given up on growth. just into tax and transfer. that is something that the trump campaigns needs to really focus on. connell: doug, good to see you. we do have the tax returns from the clinton campaign. we'll see what if anything we get out of the trump campaign. a big chunk of this clinton economic plan we've been talking about is spending. a spending initiative would go to debt-free college for everyone. now what about that as economic idea? here to debate it alexandra smith, garland nixon. is this a good idea, economically, free college? >> absolutely. the he question is this what do you get, what returns do you get? number one, better educated workforce. i was law enforcement officer for many, many years. i can tell you this you don't arrest a lot of people with college degrees. you go into prison you don't find many people with college degrees. payback is so great for investment of educating our citizens i don't think -- connell: do we have the money, before i get alexandra's take is little different. the argument is we don't have the money, free lunch for everybody? >> i always rejected that concept of an argument for this reason. anytime we want to bomb somebody or build nuclear submarines we don't discuss the cost. only time we discuss the cost when we talk about a program helping working class or working poor. the discussion shouldn't we have, unless we move that discussion to military weaponry. connell: give that over to you. your thoughts. >> it disgusts me. i'm someone who put myself through school. i don't believe it is u.s. taxpayer's responsibility to do that for me. this is hillary clinton thinking top down from washington. wants to put everyone in the same box. she hasn't realized education has grown, it is diverse spied. people are non-traditional students and pursue them differently. federal government from washington, d.c. handled things like health care so well will run it for everyone? what is really interesting about this though, is that this is a huge play for her to get that obama coalition of young people back together and it is not working. it is not working in the polls. and also research we've done, they don't believe government can deliver on free college because they have never seen government deliver on anything. connell: one issue i take it is not working in the polls. i mean she is doing pretty well seems like or trump is doing fairly poorly last couple weeks in the polls. numbers of young people favored secretary clinton, haven't they overall? >> i will push back there, president obama captured 66% of the youth vote in 2012. young voters reversed the decision the rest of the electorate made. only 49% of the young voters supporting secretary clinton and young voters looking to third party options like gary johnson and jill stein that is huge problem. she needs the coalition put back together and they don't trust her or like her. connell: garland, that will be not just young voters but obama coalition alexandria includes other type of voters, minority voters helped president be elected twice, young voters. is that coalition, the obama coalition going to turn out in your view to support mrs. clinton as aggressively as they did? >> certainly they're not going to turn out for hillary clinton like they did for barack obama. what we're really discussing here is, would be the new deal democrats, people who believe in the fdr social programs, as opposed to maybe the cold war democrats which would be hillary clinton, scoop jackson kind of people. no, unfortunately i don't think they will. if you look at bernie sanders, one of the things that attracted bernie sanders young people to bernie sanders was this particular issue. there are a lot of people in trouble at some point, the government will have to do something to deal with the issue of young people being mired in student debt. connell: shift you guys attentionwise to the stock market for a few minutes. it is interesting. we're smashing records. we talk about it a lot on fox business. the dow is down a little bit today, down 49. all three major indexes and averages hit record highs at the close yesterday. some people making argument if we continue, making gains, then you take polls and speaking of polls, look at data, talk to people anecdotally, average americans say they're not feeling it. what about that alexandra? is there a disconnect. knew survey, career builder, three out of four are living paycheck to paycheck. what do you think of that? >> we keep seeing incremental markers of growth and celebrating making a big deal about them, but not about the potential as country. not about who we are as americans always believing we can do better. this is the first president hasn't been able to achieve 3% gdp growth in any part of his term. that is utter disgrace. that is where americans are feeling stuck. they feel like their wages aren't growing. they feel like they can't pay their bills. so that is where i think a lot of americans feel right now. connell: garland, isn't that fair criticism of president obama, economic growth, has been, to alex -- alexandra's point. stock market is doing well, isn't she right about that, is that why there is a disconnect? >> i don't think at all something you can pin on president obama. i think what we're looking at is result of 30 or 35 years of policies that crushed the middle class. what we have now is economy where probably 40 to 60, depending who you believe, 40 to 60% of the money comes in, comes in and goes through financial complex financial tools on wall street. so the average person doesn't see any gain or loss when the stock market goes up. this is result of long-term policies. one president didn't cause this it wasn't just republicans or democrats. both sides had a hand in on policies that left us in the position where the middle class can not gain any ground anymore. connell: i do find it interesting, that far fewer people, this is totally anecdotal, alexandria, far few people, just on day the market is not doing much today, day market sup 300 points or down, far fewer people come up to me, say hey do you see the dow. movement in the stock markets, make speakses to the fact that they are fed up, i don't know. >> people are fed up. they're fed up with administration talk ad big game. if you watched president obama's speech at dnc convention he painted reality of america doesn't exist for ordinary americans out there. there are 7 million more americans in poverty under this administration. 11 million more on food stamps. people are having a hard time making end meet. we're not achieving our potential as a country. they are looking for candidates at all levels, presidential level, at the down ballot races as well, step up, here is how we open up washington. here is how we make your economy grow for you in your local community, rather than top down from d.c. those are candidates that will be successful because they don't make the american people feel stuck and mired in washington and what hillary clinton wants to do, which is continuation of president obama's policies. connell: guys. thanks a lot. really appreciate it. alexandra and garland. >> thank you. connell: a good discussion and we'll get back to other topics we mentioned at top in a few minutes. whether it be taxes. tax release, a lot of politics in the tax release. probably a lot we could talk about there. we'll see if donald trump has to say if anything about that. other issue for hillary clinton, or continues to be the emails. i know she would try to keep things on point with the economy and talk about her plans and even her tax release which she came out with but the scandal over her emails continues to plague, latest batch of emails sparking concern what has been described by the trump campaign, pay to play tactics, wealthy contributors to the foundation, the clinton foundation, reportedly getting preferential treatment by the state department when she was there is as secretary. we'll dig deeper into that issue later on in the show. signs from the economy from retail, department stores, we've seen a boost there. overall retail sales last month told a different story and we have the whole story after a quick break. your insurance company won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. and if you have more than one liberty mutual policy, you qualify for a multi-policy discount, saving you money on your car and home coverage. call for a free quote today. liberty stands with you™. liberty mutual insurance. connell: we were talking about the recent rise in retail sales stalling out. let's bring in frank roach, an economist here, on whether the economy is moving in the direction where rates will start going up. do you think it is at this point, or no? >> i don't think there is basis in the economic data to suggest the fed should raise rates, except for that unexpected non-farm payroll data point we had over week ago which laid into janet yellen's conversation if we get in boost in employment we'll go on rates. this retail sales number does not support rates. connell: gdp figure we talked from a political perspective, seemed to get buried with all the political news. donald trump could have jumped on, it was not a strong number. what is going on with jobs? is that as strong as seems to indicate it is? >> no. you look down and get granularity, the wage quality was not sufficient or basis for fed to raise rates. retail sales same thing, connell. connell: funny to see the market at record highs and we come in every day -- there, i was using the word disconnect. it is a weird market. >> they're juiced by the fed, by free money. algorithm trading models boosting stocks higher on back of free mon from the fed. connell: people don't feel better. >> no. connell: nobody comes up to me, hey, did you see the dow? people years ago would. they would get excited about it. there must be a reason for that. >> it is. economy is not doing well. bad news is good news. good news for the stock market. it doesn't reflect fundamentals in terms of corporate earnings and ratios and how we evaluate the companies. this is free money falling into equities. connell: let me ask you this. we talk about the stork market a lot, quote, unquote, grinding higher. it is somewhat boring but going up, right? on the economy is it sort of like, it is all right, no big deal, when you say the economy is week, or is not as strong as we think its, are you worried? >> i am worried. we're moving towards recession and eurozone and canada and latin america. and as is asia. growth rates, those are annualized growth rates. looking at .1, this is not robust growth. connell: we're moving toward recession i could ask you certainly have political impact we're in election year. when are we heading into recession. >> matter what the central banks do. to the extent central banks prime the pump and push liquidity in the system we stave that off. $4.5 trillion of free pointed money and getting 1.2% annual growth. the problem the underlying economy is not performing well. capital stock is not sufficient. our trade imbalance is bad. debt picture is bade. immigration picture is bad. regulatory picture is bad. connell, these are all the factors minimizing growth of potential economy. connell: to be serious about it, if you're right, those are very important factors. how does it play out? because after we went through what the disaster of 2008, a lot of people looked back, see this, this and this. is that what you're looking at. these are signs of some sort of a event or bunch things on the way. >> there is a lot of things. deutsche bank alone out of germany has difficult situation on their hand in terms of liquidity and derivatives portfolio, we could have a credit event start the whole ball rolling again like lehman in 2008. beyond that, the economic data, look at numbers, it reveals a weakening economy over time and has been this say for several months. connell: sorry to say that frank's message which could have been more positive -- >> i can bring you positive. connell: it will not get any bert as the show goes on. one of our guests is marc faber, who probably thinks the world will end 3:00 this afternoon. come up, boom doom gloom report. continue to ruin your weekend which frank started. thank you, frank. >> reality is tough sometimes. but we have to bring this down to our attention. those not paying attention to the data, they need to be aware of it. they will pay attention to it in september. connell: it is important conversation. have a good weekend all the same. frank roche. fallout from the hack on democratic national committee. no official proof it is russia but the united states may be ready to punish russia for it. you will find out more after this. connell: getting alerts after the hack, the democratic national committee. cyber expert morgan wright, would this work, punishing russia in terms of going after them for this particular hack? what do you think? >> hardest part will be connecting the dots, right? we believe it is russia. was the russian government was it done with the express or complicit extent of people in power? or affiliated group did it with a wink-wink, nudge, nudge. go do it? if we did sanctions. this is getting back to cold war mentality. they do sanctions on them, we do sank on us, we expel their diplomats. they expel our diplomats. there are a lot to lose with russia not just mop tear littlely but politically. connell: you thinking nor something better option. >> no. hitting them back. i said on fox business. give them a blood by nose. like the chinese. you do something to us, we do something to you. there are consequences, prices to pay when you hack us. what we do, we allow them to hack us. we allow them to get into critical infrastructure, we complain about it. we need to talk about what we can do to get your attention, give you a bloody nose. like bully on the playground, give them couple bloody noses, pretty soon they understand there are consequences. connell: those stories about them, supposedly the russians hacking us what are we doing? are we doing similar things? are we doing similar things that are ethically questions in the hacking world? what are we doing, do you know? >> certainly not sending them an email. they have already got those. a lot is about just as we have offensive capabilities. we have arsenal, think about nuclear arsenal, we have arsenal of cyber weapons, smaller and limited. you can do big things, take out the power grid what happened in ukraine in december. 800,000 homes, black energy. yes, we do have ability to hit back. it's a policy question. it is not issue of technology. do we have the technical capability to do it? absolutely. between dod, nsa, we have the ability to hit back, the question is what is our policy. connell: because a lot of this is so under the radar that, you know, again, i don't know maybe we are doing things but if you want to make a political statement about it, it has to be out there in the open. you have to publicly do it. >> well, depends, right? if you want to get somebody's attention. if they're spying on us and spying on them, a lot of times those things are handled not so much above the radar. you don't want everybody to know what is going on. this case i wouldn't be hard to tell taking out 800,000 homes or take out energy grid. cyber warfare has changed opposed to mutually assured destruction, deterred effect of nuclear weapons and policies on espionage. we're still babes in the woods, everybody when it comes to figure out policies, how do we handle this? what is our strategy? >> whole new world. morgan wright. developing news from the epa. it is working to remove toxins from water. lauren simonetti is here. could have huge impact. tell us about it. reporter: big impact. epa systems, to make sure their chemicals in pots and plans in water. they can be linked to cancer, obesity all sorts of health problems, they acknowledge the ways they test for these chemicals isn't where it needs to be. harvard university does a study, they work with the epa here. and they found six million people as you noted are really affected by this, tapwaterrer out of the fawcett with levels of these chemicals that are i here than they should be. in fact the chemicals are laced in drinking water in 33 states. most harmful in 13. we have map showing where they are. california, new york, florida, really feeling brunt of this. on heels what happened in flint, michigan, thousands of kids exposed to lead they changed their water supply, you want to know if you turn on the water it is safe to drink. i don't think american public believes that. connell: wow, that does have big impact. thank you, lauren, for that news. after flint especially. >> we're more sensitive to it. connell: thinking more than we have been thinking about it. concerned republicans are calling on the rnc, the republican national committee to withdraw support from donald trump. trump is threatening to use power of the purse against them. we have details after this. 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(announcer vo) sorry, confused neighbors, howard's on. siriusxm. road happy. connell: so donald trump is fighting back against critics inside of the republican party who have been essentially out there last few days they could abandon him, maybe he stops fund-raising for the party. listen to this. >> i'm the one that is funding. i'm one raising the money. and other people are fetting to use money i raise. i'm putting up money from my own campaign as you know, i funded my own primaries. i'm putting up money from my own campaign but raising a lot of money for the republican party. if it is true, that is okay too, i will have to stop funding republican party. i'm one raising money for them. >> all this comes with reports out there republican officials may be focusing more on some down ballot races as opposed to top of the ticket. let's talk about it. charlie gasparino is in the newsroom. he joins us from there. john tatum joins us, fairly well-known republican donor. significant having both charlie and john on the show together. show you a quick picture of -- this picture, you see that? the man in the middle you recognize, right? this is charlie and john with donald trump. if you follow charlie on twitter, you have seen this picture four million times, when he is fighting, john, you should know this, somebody who, wherever about something on twitter, as a joke he always sends out this picture, don't you, charlie? >> i send that one out and me profusely sweating after, after workout. some twitter troll just now said, sending that out is a form of harrassment, by the way. connell: thank goodness. thankfully we do not have the picture available of you profusely sweating. john, tell us what you make on the back and forth? sorry about the picture. what do you make of the picture of donald trump back and forth with his own party what is story? >> connell, i want to dispel some rumors being promoted by the democratic side of the status here. so, first of all, mr. trump and reince priebus are very tight. they're very close. they were together recently in nantucket, for a fund-raiser that was very successful. they were together, they're actually together today in pennsylvania. so, the notion that there is this big come to jesus or whatever they call it meeting down in orlando is a little bit overblown. you know, i think the notion that they're going to split is mad and i say mad from a standpoint of mutually assured destruction. connell: okay. your point they're, there is no abandoning of donald trump. anything from your sources different from that? >> i think he is right 100%. realize where the news comes from. i bash donald all the time. that is why you see me getting in all the twitter fights. you got to look where this is coming from. the media hates donald trump. they want to elect hillary clinton. most of the mainstream media, whether "politico," "washington post," you go down the line. they really have animus to donald trump. one thing you say about me i have an animus to both candidates. connell: you don't like anybody. >> i don't like anybody. what i'm saying is, they have a very. of a one-sided animus to donald trump. any news bad to trump gets put through that prism. listen, i'm pretty sure there were some comments made to donald trump to get his act together. to conflate that with, let's, you know, we're going to disavow donald trump and get another candidate, essentially what some of these stories are saying is absurd. they can't do it now and won't. connell: there is some concern, john, about down ballot race. >> that is different story though. connell: i understand that. mitch has alluded to that. there are republicans concerned if the polls are right, it will really hurt them in the senate and house, right? >> well, but you have got to realize, you know, the down ballot races need donald trump to succeed in the respective states. >> they do. >> exactly. i'm a friend of marco rubio's. my advice, marco will be in dallas for an event at the end of the month. and my advice to marco is going to be, you need to get out on the campaign trail with mr. trump. it sends a message to supporters, hey, you know what? we're all on the same team. we're fighting for the same cause, lower taxes, lower business taxes. get the economy going, et cetera. and, you know, the other thing is, there's a contract between mr. trump on these fund raisers and the republican party. and he is right. the first $2700 raised by contract, goes to mr. trump's re-election campaign. reince doesn't want to take money away nor could he. >> you have to admit donald isn't a great fund-raiser, right? compared to others. >> i don't know, charlie. >> -- fall apart without him but i don't think -- >> he is a big draw. i want to invite you and connell, invite you and connell to come to fort worth on the 23rd, tuesday the 23rd. we're having a big event in fort worth. charlie, you know my wife hates these things. i want you to be my plus one. >> okay. >> we can go back to the photo. connell: this is really bad. >> there is the picture again of two of you, three of you. >> there is event in fort worth on 23rd. he is the lebron james of politics. connell: i don't want to speak for him. >> i do have a made america great again hat made in china by the way. connell: next time get john's permission before you put them all over the internet, would you, charlie? get back to the battle over the budget talking about earlier. hillary clinton talking for expansion of social security as part of her plan for the economist. watch this. >> protecting and expanding social security doesn't just help older americans retire with dignity. it helps to ease burdens on families and communities by moving toward reform, we will unleash a lot of new income and growth and we will level the playing field so that american workers can't be taken advantage of because undocumented workers can be exploited by employers. which is one of the reasons we have this disconnect. connell: all right, speaking of disconnect, dynamism shell is with us. he said -- dan mitchell says social security as we know it is going broke. expanding it at this point what do you make of that. >> imagine this is the scenario. you've been smoking two pack of cigarettes a day for 30 years. you go to the doctor. the doctor says you have cancer. do you suddenly start smoking three packs of cigarettes a day? we have a $37 trillion inflation adjusted hole in social security and hillary clinton, i thought it was simply because she had to fend off bernie sanders in the primary. even now after she has is the nomination, she is saying let's dig the hole deeper. become greece at a faster rate. i'm surprised my head didn't explode whether i saw it. connell: i think she has to fend off trump a little bit. douglas holtz-eakin was with us earlier. i asked him does any of the candidates care about the debt or higher deficits? from his point of view at as republican, there is no quote, real republican in the race. trump talked about preserving social security, hasn't he. >> trump is with entitlements. he says he doesn't want to touch them. that is irresponsible enough. connell: not adding to them though. >> being greece in 2003, everything is fine we don't need to change everything. hillary is saying we're in greece in 2007, let's increase the size and burden of government. and i think, here is what is really sad. i suspect deep down she knows she is being irresponsible and being irresponsible to come out against trade but she can't help it. connell: need to make that argument if you want to get elected, is your point. thank you. good to see you. we talked about facebook. now we have reports that twitter is censoring users. we'll talk about those reports next. reporter: i'm nicole petallides fox business brief. record-setting close, dow, nasdaq and s&p. we haven't seen all three record closes since 1999. today has been a mixed bag. tried to give it a go in the green a little bit. see red arrows once again. dow down 43, s&p down three and nasdaq down four. as we look at we moved up to the record closes yesterday, amazon, google, saw the names at all-time highs this week. see right now with up arrows. facebook gaining 20%. amazon 14%. groupon 85% this year. retailers, autos, e-commerce, that was only part of retail that offered bright spots. here is look at some retailers that have had their latest numbers. we saw jcpenney cut costs. that is 4%. nordstrom, kohl's sales less than expected. shoppers not hitting sports goods and food and beverage overall. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from a dry mouth. connell: interesting story about social media as we have reports that the former ceo of twitter dick costollo privately censored what he considered to be abusive responses to some of president obama's tweets. hmmm. ashley webster is here. people say horrible things on twitter. >> they do. they do. and you too. but, this is interesting because this involved a town hall meeting that was being sponsored by twitter. turns out that mr. costolo put out or asked his underlings to put a algorithm together would take out what he called abusive and hateful language toward the president because you will always have people out there that will do that. connell: just the president though? >> just the president, as the report goes. he didn't tell a lot of senior people apparently because he was concerned they may say no, we're not going to do that, because twitter has been a real support for freedom of speech. they say, look, we may not like all the subjects of the tweets but we depend their right to flow freely. connell: right. >> a little bit of irony in there. however, i will say -- connell: no, no. >> talking with stuart varney about this morning. we both agree you can't have people just being absolutely vial on twitter towards the president of the united states, i don't care who it is. connell: i wonder why they wouldn't make, to your point, vial comments, ban them or censor them, whatever term you want to use, make it for everybody. >> you should, i agree. connell: speaking that way -- >> when it comes to the president or oval office they felt it would cross the line, out there in social media world they obviously don't take such a strong line. it is difficult one for social media. generally people will frown upon anyone acting as gatekeeper. much like fast book got involved in their argument -- facebook. connell: any move to ban charlie gasparino's tweeting at this point? >> only photo of charlie and donald trump. only one viewer left in the world in kenya, i haven't seen that photo. they're begging charlie to put it out. connell: he tweets it every day. >> i know he does. connell: think about charlie, which is interesting, everybody who attacks him, every single person, there is the photo in question. >> there you go, thank you, kenya. kenya, there you go. connell: he responds to every single insult. >> funny i love charlie. as you know he has been on mr. trump's trail and we know, mr. trump has a thin skin. i would kind of maybe suggest that so does mr. gasparino. connell: good luck up in the newsroom. >> charlie, don't hit me. i hope you're working out. connell: i probably is. thank you, ashley. >> my pleasure. connell: continuing excellent reporting. >> thank you very much. connell: child care costs are rising, we know that. it is becoming a topic this week. donald trump says he has a plan to fix it, hillary clinton talked about it. should parents be hoping that trump gets his way? we'll talk about it after this. you do all this research on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. just one of the many features that comes standard with our base policy. call for a free quote today. liberty stands with you™. liberty mutual insurance. >> we should expand the child tax credit to provide real relief to tens of millions of working families struggling with the cost of raising children. the same families that his plan ignores. >> we'll make average child care expense tax deductible for working families, a very big thing and very fair thing. connell: all right. so both candidates, hillary clinton and donald trump, have talked about child care and we're going to talk about it now as well. this is a very interesting topic and one a lot of people have thoughts on. liz stern is with us, to give us her thoughts. thank you for joining us. the last part, because many of us who do have children would love to save a little bit on the child care. average numbers are like 18 grand a year families spend on child care. trump wants to make it tax deductible, argument for it. argument against it people on lower end of the spectrum don't pay federal income taxes so they don't benefit. what do you say? >> he has all the great ideas, but what is the actual plan. it needs to be personally fair for everybody universally, not for lower income, not for middle income, or higher class. for everybody across the board for children. for everybody that wants our children to have this. it should have. shouldn't take another 45 years to implement something in place. however i want to know what his exact plan is to do that. and how he goes, how he will go about that. as of right now he is in talks with his community and ivanka, what he thinks is going to happen. which is great but -- connell: making it tax deductible. criticism criticism of that, if you don't pay federal income tax, poorer people would not benefit from it, that is what the democrats say. making, look, a lot of other people this would be great to have it tax deductible child care. we pay so much for nannies whatever the case may be? >> very expensive to have children and going back to work, to pay for child care. there needs to be a plan in place working for everybody. connell: okay. >> and yeah. connell: do you have a suggestion by the way before we let you go on specific plan? >> i wish i had a suggestion for this, i really do. i just know, everybody needs to get together and come together with a concrete plan because it does need to get done. connell: can we afford it, was the question when we have the conversation this hour about social security. there is question, we had a conversation about taxes, can we afford to spend more something on this. we would love it but can we afford it? >> that is a, big question, and b, how do we make it happen? how do we cut from other areas and that is something very important that all families should have the opportunity to have. connell: thanks. lyss stern. thank you. >> thank you. connell: get back to hillary clinton on couple different topics. number one, promising more government handouts in some cases. we'll talk about when we come back. how do republicans counter that. our guest at top of the hour, governor mike huckabee. hillary clinton and her running mate released their taxes last hour. there is interesting political argument inside of that. governor huckabee coming up : . connell: so the economic battle lines are set. you might say now the candidates are making their sale. hillary clinton promising the government will do more for you. donald trump promising a big cut in big government. what do voters really want? we're into hour number two of "coast-to-coast." i'm connell mcshane filling in for neil. good to be with you. in less than an hour donald trump will hold an event in the key state of pennsylvania. he will make a further pitch for economic plan. tax cuts are at the center of a lot of that. hillary clinton focusing more on the promise of more government. we talked earlier about free college, paid family leave is a part of it, raising the minimum wage is something she talks about. investing in jobs. more spending, essentially. so how do trump and other republicans counter that? we have the former governor of arkansas mike huckabee to start the hour. always great to see you. >> great to be here. connell: free stuff affects a political argument. what do you think? we hope not. >> 19 trillion and growing, absolute debt. we are 1%, we can't sustain our country like that. if so many people out of work, lowest workforce participation in a generation, you add all that up and we're in a world of hurt. if we continue on the path we've been on which is double the debt since barack obama took over from the first 43 presidents. think about that, that's staggering. if we continue on that, we just don't keep going. there's no money there. connell: now hillary clinton is fairly open to the fact she wants to spend more money and raise taxes to do that, that's part of her plan, the commercials are on during the olympics and high taxes for people who make more money. it's interesting politically an hour ago she came without her tax return and tim kaine as well. she was bragging about the fact she pays higher taxes. they put a number out and blake burman said the campaign is pushing this. since 07, the clintons have paid almost 44 million in taxes. look at them, they pay their fair share. >> you look at fair share, look how much money they've taken! which i think a lot of that is corrupt money, money they took into do favors for people. connell: right, the clinton foundation you are referring to. >> absolutely. connell: can't trump counter this? look at this, she says she's bragging about paying higher taxes, tonight cut your taxes. the message we could hear more from donald trump about growth and lower taxes? >> he's got to focus what his proposal is to take business taxes to 15%. it creates jobs. if an employer is spending less money for nothing that he gets of the government of any consequence, that's money he can pay to take the job that he would love to have done. right now he's having to work 20 hours a day because he can't afford somebody else. the policies of the obama administration whether it's obamacare, have caused business owners to do something they've never done in the history of the american economy. try to stay small. stay under 30 hours per week per employee. stay under the threshold of 50 employees, those are the thresholds that cost you a whole lot more money. connell: brings up interesting argument and one that's been out there from the trump campaign's perspective of is he going stay on message? his campaign argues about the media, saying headline after headline declaring that things are horrible for donald trump, and certainly there is something to that, you know, here's some of the headlines, for example, "time" magazine cover, the meltdown thing. >> which is a totally bogus story. connell: okay. >> i've been on the trail with donald trump for two days. i got in at 12:30 this morning. the "time" magazine about the conflict between the rnc and donald trump, absolutely untrue. i was there. i'm sitting there with donald trump, sitting with senior people. this didn't happen. i've talked to sean spicer at the rnc, i've seen the statements from reince priebus. this is made up out of the thin air. connell: there are other things that aren't, quotes or statements he's made the last couple of weeks. the saying hey, if they give you a gun, they're going to shoot you with it. you ever talk to him and say stay more on message. i know other people have, you ever talk to him? >> sure, all friends and supporters say focus on hillary, don't let the other stuff get to you. look, he's a human being. this is the first time he's ever run for anything. not even school board. if you run for office the first time, one of the shocks to your system is how brutal the press and opponents can be. how vicious, and how untrue. connell: could be his own doing? >> i don't think so in the long-term. i think the american people, we're a long way, it seems like we're gee, 88 days from the election? here's the other side of that. when we get into it and the debates, people see my choice is a person who's truly been now revealed as a serial liar, lying not just about campaign promises but about government secrets, about her integrity as a public official paid for by taxpayers and a guy who has built successful business, created jobs. a person that may be able to bring america to a new place of self-respect. i think the decision is clear. connell: you know how to do that, you made the argument. you've run for office a number of times, governor of arkansas and for president. do you do that? that's the argument we hear from people who are experienced. it is a business, right? it's like we're in television or radio, politics is a business too. there is something said of the experience you had to make the argument that sometimes donald trump doesn't make as effectively? >> i'd love to say i'm more effective than he is. connell: but he's the nominee. >> i'm sitting here talking about him. connell: it's true. >> he's done it very well, he's connected with a lot of people who know that the big institutions of america, the financial world, the media world, and the government world, has absolutely failed them, and they're angry. they're in a seething rage. connell: he has to spread that out and the coalition has to be larger, more of the traditional republicans in addition to the people. >> there is plenty to elect them. a lot haven't figured out that hillary is part of the problem. she's been on the government payroll, living in essentially government housing for the past 40 years, she's not had to drive a car, didn't shop for groceries, never clipped a coupon. you think she stands in line at the airline count or stand by and looks at kayak to get a good price on the ticket? she said she is dead broke, do you think she is dead broke? no! paid 44 million in taxes. when people ask who will actually fight for me and game the system to fight for themselves? hillary's made a lot of money off the government, donald trump made a lot of money in the private sector. big difference. connell: you did it again there. you go again with the argument. [ laughter ] >> good to see you, governor. i wonder if it's late, if it really is early, if he has enough time. >> at this stage in 1980, jimmy carter was beating the daylights out of ronald reagan and george h.w. bush was getting defeated by michael dukakis. connell: i thought it was later than that, after the convention. >> dukakis started falling apart in september-october. the ad with the tank, him riding around and the willie horton ad got him. connell: good to see you. the other thing hillary clinton says donald trump's policies are favoring the rich. here it is. >> a myth out there that he will stick it to the rich and powerful because somehow he's really on the side of the little guys. [laughter] don't believe it. connell: all right, say are is with us, washington examiner, and she says hillary clinton is the one getting the backing from the rich. it is interesting, sarah, she seems like the wall street candidate in some ways. i don't know if we get that from the primaries, but seems she has more support from the wall street crowd many ways than donald trump has, she's going after the rich. why is that? >> the numbers reflect that. if you break down her contributors by industry, it is the number one contributor. hard to make the argument with credibility that donald trump is the one that's going to buckle to the interests of wall street and to the powers that be in america when she is herself funded by those same interests, and not just her campaign, not even the clinton foundation, but her herself has pocketed millions of dollars from the entities paying her for hour-long speaking engagements. this is a difficult argument to make, and donald trump's tax plan doesn't reflect that many benefits to the rich. it's a moderate tax plan when you look at rates he's set up. connell: the hillary clinton issue, we've heard a lot about what you were referring to. the goldman sachs speeches and other things because bernie sanders brought them to our attention during the primary race. from your reporting, have you gotten to the bottom of why she has so much support on wall street? is it establishment thing? like the same argument? why is she more supported on wall street than trump is? >> well, you know, you look at the policies she put forward as a senator. she did not crack down on wall street. she had the opportunity to put forward legislation that would have prevented the economic crisis. she was in office for years leading up to it, running for president when the economy bottomed out in 2007, 2008. she did not crack down on the excess of wall street which she is claiming to have given the opportunity. you didn't see her take a hard line of the deregulation of banks while she was in office. and at the same time, wall street was giving to her heavily because she was a senator that represented wall street. connell: it is funny, she is open, as i was talking to governor huckabee about, the fact that rich people should pay more, their fair share of taxes, which would be that group, the people who have more money. somehow they still support her, or a lot of them do. >> exactly. those are the questions that senator bernie sanders raised. in one debate he said the people are not stupid, they're not giving for hillary clinton for no reason. there's a reason why the wealthiest americans are flocking more towards hillary clinton than any other candidate in this race on either side. it's because hillary clinton has not had a history of being in office putting forward legislation that hurt the rich. connell: it's a strange year, you can't use the old arguments and assume it will be the same. thank you, sarah. p about is down 71 points. all of, this we have major travel warnings being issued, and not just being issued to terror hot beds where you expect it. we're talking about travel warnings to the united states. . connell: we do see stocks moving a little lower today. the dow down by 66 points. off the record high we've been talking about so much. but this doom and gloomer, one of our favorite, if we have a favorite doom and gloomer is with us now. dr. marc faber is predicting a crash. it always seems like you're predicting a crash, and we don't always get one. are you still negative? what's going on? >> actually, i don't think i predicted a crash in gold. and the gold as you know this year are up 100%. i don't think i predicted a crash in treasury, and treasury year-over-year, the long-term bonds are up 20%. connell: you know, that's a really good point, we focus way too much on stocks. we focus way too much on just stocks when there are so many other investment classes. you are 100% right. when is the last time you were bullish on equities? >> well, i've been bullish on some equities like emerging economies. stocks, they look to me, very inexpensive relative to the u.s. and still are inexpensive relative to the u.s., around the turn of the year, and this year indonesia and thailand are up 25% as well as the philippines, vietnam 14%, brazil, 65% in u.s. dollar terms. connell: and the rallies continue in emerging markets? >> i beg your pardon? connell: the rallies can continue, you are still bullish in those areas? >> i think all asset markets are expensive. you see, in 2000 we had the nasdaq bubbling. 2007 we had the housing bubble, and the stock market bubble but not all stocks were very expensive. but now we have high real state prices. we have high stock prices in the u.s., not necessarily elsewhere in the world, and we have by historical standards, the most expensive bond market in the world, in 5,000 years of history with negative interest rates on more than $12 trillion worth of bonds. so if you tell me something is not sick, something is not unusual, i don't understand the world anymore. connell: so what do you do, then, if you don't understand it? if you're in a position where something doesn't look right to you? >> look, we're all on the titanic, as i said before. i think we need to diversify. we need life saving boat with precious metals, gold, silver, platinum. in a safe place, not necessarily in etfs and we need some equities, well diversified, also by custodian and by geographical areas. we need fixed interest securities, and we need real estate. again, geographically diversify. connell: we always enjoy talking to you dr. faber. thank you for coming on. do you ever worry, as a final question, go back to the first point, if you come on all the time, it seems like and it's such a negative message, if it doesn't come true and there's a good reason for that, and who knows, that somehow the message gets lost and people don't listen as much? >> actually, i want to tell you something. the interest by individuals in stocks have collapsed. there's very little. you ask yourself why? because normal investors, individuals haven't made any money in the stock market in the u.s. since the year 2000. first, they lost the money in tech stocks. the bubble burst. then they lost a ton of money in financial stocks after 2007 and in housing-related stocks, and in fannie mae and they made much of the recovery over in the wrong stocks and over the last 12 months, many more stocks are down than they are up. the economic number of new highs reached about 200. that's all. connell: that gets to my point last hour nobody coming up the street says how about the dow? there isn't as much interest. you are right about that. i appreciate it. terrorism fears rising overseas now, particularly in europe and european countries are warning some of them against traveling to the united states. united kingdom, germany, france, canada even all among the countries that have urged caution to travelers who are coming here to the united states, which is something different, right? they cite mass shootings, police violence, anti-muslim and anti-lgbt attitudes, even the zika virus cited in the warnings. lea is a travel expert, he's the youngest person that's visited every single country. you know about this, and you've been everywhere. it is a weird phenomenon we're used to reporting on we americans shouldn't go to xyz and they're saying don't come here. is it overreaction? what do you make of it? >> i don't necessarily think it's overreaction. if anything happens in another country, the state department issues a travel warning. this is coming full circle in my view. we've had a lot of issues in the past couple of years, hard to blame the countries issuing a travel warning in the u.s. >> we're a huge country, still events like this, even if you're traveling to another country are low probability events. what do you tell someone who comes to you, they travel all over the place and they're worried about a terrorism threat? >> of course, i travel outside the country quite a bit. the u.s. has travel warnings to mexico, also a huge country and violent issues which are well-publicized, so do we, so does france. france had three major issues in 18 months. we haven't issued a travel warning to them. a lot of people have come up to me, i was in france in june, people were like you're crazy for going to france. it's a big country, random events, anything can happen, whether it's france, germany, canada, anywhere. connell: you think people listen to the warnings in your experience? if they do, it could have a detrimental effect on our economy potentially? >> i think it's not necessarily the travel warnings that make people listen or avoid coming to the u.s., if there's an event that happens, you know sandy hook, orlando, whatever it might be, that's so publicized on fox news and other major networks and around the world, whether it's international news or bbc or whatever it is, and people see that and see all the gun incidents and anti-whatever sentiment, whether it's from politicians or other people in america, and they're like, wow, maybe i'll avoid going there, not to mention there's a lot of bureaucracy and paperwork hassles coming here. i think it's contributing to a sense of people not wanting to go america just to avoid has else. it's hard to see as an american. but i understand. connell: we'll see you again about one of the big stories, okay? >> take care. connell: hillary clinton we talked about how she's trying to focus on the economy but can't shake the controversy over her e-mails. new details, after a quick break. your business needs a lot of speed. but getting it doesn't have to break the bank. introducing the comcast business summer savings event. now you can get a lot for a little. as little as a cup of coffee and donut a day. fast internet speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. . . . . connell: pack here on "cavuto: coast to coast" you want to talk about issues you want to talk about. she is facing more issues about the emails. over alleged pay to play tactics. wealthy contributors to the clinton foundation reportedly getting preferential treatment while she was there. let's bring in two strategists to talk about this. when this is true problem for her in november, do you think it will be, something that really hangs around? the criticism from the trump many campaign the press is not focusing enough on it? what is your take. >> my take this will not resonate with voters. what is happening that the administration, the obama administration is work tock cover it up. it is getting swept under the rug. the american public won't find out. the more the department of justice says we will not probe it, state department will not touch it. they won't touch it because hillary is in so deep. nobody will explore what is happening, that is the pay to play scheme. connell: jim, were you worried about it, the idea that there may have been some conflicts of interest to put it mildly between clinton state department and the clinton foundation? was that something that worried you as you look at itlyally as an issue? >> quite frankly no, it doesn't and it won't. as far as i'm concerned allegations come from two places. number one discredited outfit called "judicial watch." also from a failed right-wing reporter or author who wrote something called "clinton cash." again, wildly disputed last year. you know, all i have to do is take a look at today's polls. colorado, florida, north carolina, and virginia. and i feel pretty good about where we are at this point in time. connell: you don't want to get complacent, jim? you know because donald trump, a lot of polling, you know, we've all been here last couple weeks, a lot of that has been donald trump making mistakes some would say self-inflicted mistakes and not best two weeks in the world, if you start to get complacent, these issues don't go away. he gets more focused hitting her every day on it, that could have effect, no. >> couple different things. i couldn't agree with you more about complacency. i learned a long time ago not to get complacent about these things. having said that, looks like trump will not ever change. so we've got that going for us. look, the fact of the matter is, again you are absolutely correct, there, this issue, these issues relating to emails are not going away anytime soon. the clinton campaign will have to continue to try to deal with them while they manuever towards an election in november. connell: i do think it is interesting a democratic strategist on one side of the screen and republican strategist on one side of the screen, both agree this will not be issue for different reasons, mind you. do you think if you're donald trump you just ignore this as accept it is way it is going to be as i opposed to suggested a few minutes ago to jim to hammer her on these issues until november? do you think there should be a different strategy for his point of view? >> as you suggested walk away from missteps past couple weeks and focus entirely on hillary rodham clinton was above the she was cozy partners and big billionaires or people in the administration backing her canada civil that is why the truth is so hard to come to life. connell: jim is counting on the fact he doesn't have focus to do that, you heard what he said, right? >> he does, when he really wants to he can go after something. unfortunately for our side, look what he did to the gold star family. he doesn't know quite when to stop. i hope he applies same focus he uses for whatever he wishes to hammererring the fact she is above the law and she is really somebody the american people can not trust. that is why she is not doing as great as people hoped. democrats are constantly having to do damage control for her because she has a trust issue with the american public. connell: thanks to both of you. we'll move on and talk a little bit health care. we're six years into obamacare. why some insurance companies want to get out. that's next. i don't want to live with the uncertainties of hep c. or wonder whether i should seek treatment. i am ready. because today there's harvoni. a revolutionary treatment for the most common type of chronic hepatitis c. harvoni is proven to cure up to 99% of patients... ...who've had no prior treatment. it transformed treatment as the first cure that's... ...one pill, once a day for 12 weeks. certain patients... ...can be cured with just 8 weeks of harvoni. harvoni is a simple treatment regimen that's been prescribed to more than a quarter of a million patients. tell your doctor if you've had a liver transplant, other liver or kidney problems, hiv, or any other medical conditions, and about all the medicines you take including herbal supplements. taking amiodarone with harvoni may cause a serious slowing of your heart rate. common side effects of harvoni may include tiredness, headache and weakness. i am ready to put hep c behind me. i am ready to be cured. are you ready? 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[announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. connell: so obamacare problems are piling up if you talk to some insurance companies. many facing mounting losses threatened to pull out of exchanges according to new stories that are out. that is one of the big reasons betsy mccoy is part of donald trump's economic team. this is always a big topic for you. good to see you. >> thank you. connell: health care is your thing. >> health care is my thing. 17% of gdp. connell: is that why he brought you in? >> i suspect so, the next president will be facing collapse of obamacare. it is in death spiral as you mentioned. connell: what is happening? insurance companies -- >> major insurers are enoccurring huge losses aggregate, $3 billion a year selling unpopular exchange plans. several the largest signaled they will head for the exits at end of 2016. they won't participate any longer. no insurance companies, no obamacare plans. so, hillary clinton is already promised that if she is president, she will spend as much of our money as necessary to prop up this broken system. connell: she wants to keep it sort of as is and add to it. trump is in the repeal and replace camp. >> that's right. >> will you be, i understand this is yesterday this was announced you were joining his economic team. will you be -- >> i would like to be very helpful pointing the way to a more affordable health insurance. connell: what does repeal and replace mean? how is the structure to work it out? >> first of all, no more 2572 page bill no one reads. whatever is proposed should be in short bills that -- connell: isn't that the one you usually walk around with? >> yes, i actually read before voting on it. connell: right. >> secondly whatever is passed congress must live by, whatever congress passes, congress must live by. that wasn't the case. they got a special subsidy. that americans are not stuck with the one size fits all washington knows best required benefit plan. no reason 50-year-old couples should buy pediatric care. connell: right. >> of course the reason the insurance companies are losing big, big bucks, is that the current system requires them to sell health cans to chronically i will people and healthy people for the same price. and the healthy people are getting very ripped off. so they're dropping out of the system. it is kind of like saying, try to feed a great dane and a chihuahua on the same budget. chronically ill people, 5% of the population, use 50% of the health care. connell: right. let me ask you about trump more broadly. you were named as part of his economic team yesterday. first of all i want to talk to you about his economic plans. first of all however, there was criticism of trump campaign, not having women named first time around to the economic team. you were one of number of women named yesterday. >> obvious choice. i've been a woman all my life. connell: is that important? >> no. really important issue why i'm supportings trump's economic plan and here it is. trump is offering a way to rescue our limping economy. growth in this country, disgraceful 1.2% last quarter. connell: right. >> we're limping along, despite robust consumer spending. connell: how does his plan get us back to, david malpass and -- >> tax cuts. regulatory relief. fairer trade pacts, and un unfettered vessel meant of energy. of all of that the single most important feature, slashing corporate tax rate to 15%. connell: right. >> he promised no business in the united states will pay more than 15% of its business income in taxes. that is long overdue because companies in this country are being taxed to death. they pay the highest corporate tax rates in the world. connell: right. >> as we were talking about before, look at a country like ireland which slashed its corporate tax rate to 12 1/2%. connell: they're at 12%, right. >> they grew 7.8% last year. connell: even when they had economic difficulties over there, which they did, it was disaster some time never raised corporate tax rate -- >> corporate tax rate to be competitive. there is hillary demagoguing it, corporations must pay their fair share, the fact is to create job growth, to create a vibrant economy, we must have a competitive tax rate. connell: one thing i heard from republicans, this from republicans, trump could talk more about those types of things as opposed to being focused on trade which seems like he is a lot. this has been issue, by the way he talked about for years. he thinks trade system is unfair. some of the trade deals are unfair. he want to rework some of those trait deals. some republicans should say talking more about growth issues. >> this is business show. if you look at the last three quarters, business investment has steadily declined, a sign we could be entering a business recession. how do we turn that around? slash the corporate tax rate. it is absolutely essential. connell: right. >> right now, even after all deductions companies pay about 27%, way higher than canada, the uk, ireland or so many other countries. connell: betsy, good to see you. good luck with the trump campaign. keep us up-to-date after the new appointment. >> okay. connell: stocks at big time highs. we've been talking about it throughout the week. market down a little bit throughout the day, with all-time highs having been reached, down 62 right now, why are so many americans not feeling this? we'll discuss it next. reporter: i'm lori rothman on floor of new york stock exchange with fox business brief. fox fading off records set yesterday. all three benchmarks averages closed at lifetime highs. you can see red arrows right now. we got the july retail sales report. it came in unchanged for june and lowered expectation. that could be adding to some negative sentiment out there today. on the upside we're seeing strength in energy stocks today. look at exxonmobil, up almost 1 1/2%. chevron better by .7 of 1%. price of oil is higher today, up about 1 1/2%. 2% now. but paring earlier gains on a government report that showed that the rig count rose once again last week. so that's it from here. get you back now to cavuto coast to coast. >> we're all on the titanic as i said before. we need to diversify. we need a live saving boat which is precious metals, gold, silver, platinum, physical, stored in a safe place. not necessarily in an etf and we need some equities, well-diversified, also -- geographical areas. we need some fixed interest securities and we need some real estate. connell: that is our friend mark faber joined us earlier on in the program. not exactly the most optimistic as it comes to equities however, as he rightly pointed out to me is optimistic in gold and equities. damage schaefer is here. known dan for number of years. gary b. smith might be bullish right now. are you, gary? >> i am definitely bull iish right now, yeah. connell: so why? the market has been going up, but some point to the fact that it is kind of grinding higher and economic backdrop isn't so hot. i don't know if you fall off a cliff as someone from marc faber might argue but things longer term might not look so hot. why are you bullish? >> i'll tell you what, connell, there is always two things. i always think about the economy, quite honestly that does make mel a little ginchy. makes me feel things are going down but when we look at numbers, we're talking specifically here about the stock market i start to become bullish. here is why. one, we made a new all-time high across the board. that is always a food sign. that is the market telling us hey, things are looking pretty good. more importantly i think the market priced in a hillary victory. if the voting was done today, she has 86, 87% chance of winning. so that tells me we're basically, if you look at economic policies we're going to four to eight more years of obama. you say, market was horrible underobama. actually it wasn't. inflation adjusted it is up about 100% under obama. he trails only clinton in stock market gains. so i'm not enamored with the hillary but, i'm bullish on the market. connell: want to hear dan's response to that. "real clear politics," betting markets gives her 79% chance of victory. still gary is right, dan. she is favorite to win. is that a reason to be bullish on stocks? what do you think? >> no. this year it is up six or 7%. not really that exciting. connell: stop you for a moment, dan. >> yes. connell: to be fair, you mean, i don't want to call you a permanent that bear. i was making reference to in front of me but i usually remember you being fairly pessimistic. is that fair? >> absolutely. absolutely. no disagreement with that. i'm a gary and connell if you go back and look, housing, people who own houses is down to the 1960s levels. connell: right. >> interest rates, being where they are today, are a predictor of the future. so what interest rates are telling us on 10-year and30-yeae possibly could be going into a depression over the next 10 years. that's what the signal is. it is okay, gary. connell: which i don't think it is very nice. >> remember when alan greenspan called it a conundrum, he couldn't understand why in 2005 or around that date, that the 30-year interest rate lower than the 10-year interest rate, that is market signaling that the 2008, 9 a and 10 was about to occur. we have rates telling us, guys, for next 10, 15 years, and it could go negative. connell: i will take the blame. i ran some other interviews longer than i should have early in the show. we'll have to wrap it up. you at least got to make your cases. one be to paycheck to make ends meet. we have tea party forward chairman nigel ennis with us. they're not feeling this. we heard it from number of different, left or right, they say, yeah, you're right, we don't feel this i know the market is up. what do you make of it in terms of a reason? >> that is exactly right. the fact is both of your analysis were correct, those on before me, in terms we're making record profits on wall street. when history looks back at the obama years, what they will show, if you were very, very rich or you were part of investor class you did extraordinarily well in the obama era. on the other hand if you were a small businessman, if you are a working class, middle class, you want to become rich, it was very, very difficult under this super regulatory and high taxation state. that we live under. the obama years are going to show for first time in nearly four decades more small businesses were closed than were opened, and as we know, small businesses are the greatest generator of new jobs. connell: right. >> of good-paying jobs. and that is why the american people just do not feel the record profits being made on wall street. connell: the argument though, i'm sure we hear more about it in the presidential debates from hillary clinton, hey, listen, look at stock market, at 18,005 on the dow and we should continue with the policies. if reasons are wherever they are, the argument could be sold to people and trough for trump to counter it or no? >> no. i think donald trump has got to go to struggling cities like cincinnati, cleveland, philadelphia, detroit. talk to black and brown and working class white communities, say no, the obama years have been wonderful for hillary clinton and bill clinton's friends on wall street and in the elite, the 1%, if you will, but they have not been good for you because there has been too much regulation, too much taxtation. connell: right. >> and small businesses are struggling too hard. we'll bring in a new era that brings in jobs. connell: right. >> bring back manufacturing to the country. i think he needs to challenge her, particularly since hillary and, i call them, i don't call them democrats anymore. i call them socialist they talk out of both sides of their mouth. go into class warfare against the very, very rich, but the very rich have been tag bert now than they have been. connell: make that case. thank you, nigel innis there. >> thank you. connell: public pension plans in the united states are taking more risk. why is that important? we'll tell you. we'll break it down for you in just a moment as "cavuto: coast to coast"you cann continues. 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(cheering) (announcer vo) or you can chest bump. yo commute, we got serious game. siriusxm. road happy. approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ connell: u.s. pension funds making riskier bets and doing so with taxpayer money. dagen mcdowell is here and will tell us why we should be worried about this. should we? >> always. if it's a public pension fund falls on taxpayer shoulders. connell: what are the numbers behind all of this? >> this is a study, i should start with, connell, before you jump the gun. nelson a rockefeller institute for government. connell: jump the gun. >> public pension funds. in 2014, more than 30 major public plans across the country they underpaid $100 million or more into the fund. they're contributing less, rather than making the required contributions if you will, they're taking greater investment risk trying to make up the short fall. connell: trying to make it up, right. >> ultimately if the short fall exists, particularly worsened by bad investments then the taxpayer is on the hook for it. public pension fund. connell: we don't know yet if that is happening? if there are bad investments being made? with we even know if that is the case? >> in terms of investment goals, funds were 4% short last year and 7% short of their investment goals for this year. so it looks like they're poorly allocating capital potentially. connell: right. >> but it is a big deal, but this is, i always think about this, who get as pension now adays? people in the private sector don't get pensions, that the companies, because they're difficult to manage so far out into the future. and, the money that you have to set aside and investment risk that the company is taking on, that you have just put people into 401(k) plans to let it be their responsiblity. connell: for better or worse, your own problem. save your own money. we'll match it. >> if you're a believer, which i am in personal responsibility. i don't have a problem. connell: why are you suggesting i don't have personal responsibility. >> you blame all of your problems. connell: i blame it on you. >> if you're having a bad hair day, it is not your problem, it is somebody else's problem. if you have acne -- connell: are you saying i have a bad hair day? look at the time. >> it is little funky today. connell: trish is waiting. she getting angry if we don't get to her on time. trish is back next and that wilm be it for dagen.st >> forever. medicine. i talked to my doctor and found a missing piece toms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at mybreo.com. ♪ >> okay. the big news here on cavuto coast to coast is that i was barrel able to wrap up dagen on time trish regan. trish: donald trump speaking in the battleground state of pennsylvania any time from now. today's rally comes amid new controversy. there's always new controversy; right? about his comments now regarding isis and president obama. i'm trish regan, everyone, welcome to the intelligence report. the media is going after him hard following these comments. take a listen. >> isis is honoring president obama. he is the founder of isis. he's the founder of isis. >> i call president obama and hillary clinton the founders of isis. they're the founders. isis will hand her the most valuable player award.