neil: here is hoping my buddy charles payne doesn't screw this one. we're up a lot, buddy. just throwing it out there. charles: you set me up a little bit own that one.

start slipping under your watch. tell me about it. we sound like two politicians, folks. this is "making money" live from washington desee. we have the tale two of markets. a return of old economy, industrial stocks are leading the way. we might have to go back the smoke signals before the metaverse. formerly unstoppable megacap names. new hopes for a soft landing, weaker than you hear in the media. will powell and company take the hint? i have a power if you recall line up, lance roberts and sara kuntz on iron oil exports saved the gdp number. more important the hopes of optimism. let's face it, this by partisan abuse. it this is on both sides. will congress take away their

own punchbowl. i have congressman chip roy and other things at 2:50. doomsday warnings, dominating headlines. they're forging new policy they're not going away. all that and so much more on "making money". ♪. charles: so tons of economic data out this morning, for the most part it was mostly sunpar or okay, you know but obviously the spending going on. here is the thing, the good news for the market though i think that there is enough on balance to bring back the notion of maybe a soft landing. maybe the fed could engineer this thing in a way not be as painful that would begin in my mind the so-called step down. we probably would have to get a behind of that at the next fomc gathering. if the market gets more traction, investors have to make a move. they are woefully out of this

market. mute all funds have the most cash ever. portfolio managers have the weakest positions ever. right now more than usual they're beating the street this is the irony, right? they're beating wall street. they normally miss. they don't want to get in the market because heavy less losses. will that be enough to take off? in fact many manager will have to probably get away from being on the sidelines getting in. a lot is predicated on earnings, right? so far i got to tell you, they're going the way of the old economy names. we can see that today. doesn't necessarily mean the big tech rally is dead, if you look at meta, some of these other names. it is hard to argue they will ever regain the old swagger. with that in mind, some cash looking for bigger bangs for the buck. forget about tech. they skip that, go to small caps. i talked about this earlier in the week. russell 2000 is looking pretty interesting. look at seasonality on your screen, very enticing. joining me ria advisors cio

lance roberts. talk about this market this is bifurcated market. the dow is up huge with the old industrial names. what held it back for a long time, you have got the nasdaq getting absolutely creamed. the s&p waffling between small gains and losses. the russell taking off. what the heck is the market telling us? >> you know two things won, you and i talked about this very early on this year, actually where you know the megacap names were holding up the index while those bottom 480 names were just getting slaughtered. all the ark investing etfs, those, they were down 60, 70, 80%. but didn't come in the big megacap names that has come holm to roost. they are going after the generals. those stocks are coming down. you're seeing location into smaller cap names under so much pressure this year. we're starting to see rotation in the market which also to your

point is also likely showing that we're closer to the end of thisdown market cycle than not because general i the leaders are the last to go. neil: with. charles: with all of that in mind we're getting pretty interesting signals from the bond market. particularly all the different yield curves. jay powell threw out there three month, 10-year was favorite one. i want to talk about the 10-year yield curves. how inverted it is. are we looking, is the fed looking at it thinking they are closer to their goal? how should we look at it as investors? >> so two things. one the fed is not looking at this. what the fed is looking at is inflation. that is their big thing right now. they want to find inflation. they will keep hiking rates until the inflation number gets more toward the target of that 2% goal. they will hike rates 75 basis points next week. probably 50 basis points. what we're looking for there, more importantly language from the fed they will slow the pace

of rate hikes. that should be fairly good for the stock market. but what the yield curves tell you, never in history have we had this many yield curves inverted and not gone into recession. now soft landing that generally suggests weak growth but not a recession. so, what the yield curves are telling you is we're likely going to have recession sometime next year. might be a small recession. it will depend a lot on you know a lot where interest rates are. we have interest rate hikes not in the economy yesterday. charles: i'm hoping the fed, everyone is hoping they don't wait too long. i have less than a minute to go. i have want to ask you about the massive activity. everyone is in the options field right now. it is being used for a lot of things. what is the significance there? you wrote about the implications maybe a gamma, which came into the lexicon for average folks when all the meme stocks took off? >> right. when the retail investors know

what gamma is you know we gone too far in one direction. we have everybody piling into options right now. he it is a great way to leverage your bet into the tock market. it is good thing and bad thing. options can be great but we're using them for speculation and gambling. 90% of investors wind up losing money in options over time. there is something if you don't know what you're doing i wouldn't mess with it but it will lead to more volatility on market. charles: somebody on social media made a killing way out of the money meta puts, someone made a killing on those today. we appreciate the pun service announcement but that kind of money will be hard to look away. i'm with you, i understand longer term, if you don't know what you're doing, it's a dangerous place to go. lance, thank you so much, my friend. i want to bring in sarah kuntz. of the start with meta. shares plunging obviously after this earnings miss. what mistakes do you think this

company, listen, one of the problems i see with the met at thats of the world, some of these other companies, when you have the ceo, has super voting shares, can never lose their job, always feel like they run off the rails. twitter, snap, now meta. how do you real in if you're a shareholder zuckerberg to make him real it back a little bit? >> i mean zuck has lost the equivalent of the gdp guatemala this year, right? $76 billion out of his pocket directly and he doesn't care. he likes his metaverse and doesn't care what his investors think about it. the question, is he a visionary? does he see something we're missing? the slow sales pace of the metaverse suggest not so much. the reality there is not a lot the street can do when you have a ceo who can't be fired, who controls the board, who does not care it is costing him as much money asking nels. so, i'm not bullish at all on met at that. right now. but you know, i don't know that

mark is going to care until it goes to zero. charles: with that in mind though, not just meta. they're getting hammered. a lot of names. the four horseman type names they're all down, all under pressure. there is this general feeling that swagger, the way that you had sick companies can lead the entire s&p higher, that is gone and it won't come back. what do you think? >> turns out you can have six companies lead it higher and six companies lead it very, very low. i think the moment of these megacap big tech stocks that are completely untethered to reality i think they will come back to earth and i think there will be another cycle before we see this again. it might be different names t might not be the metas and microsofts anymore. charles: you think in technology something is bubbling there? services had an amazing number. nvidia was up today, up earlier today. we still use chips for things.

a lot of people think there has to be new sectors. could there be a mini-revolution in the technology space where new leaders emerge? >> tech is not going away, right? we'll not stop using our devices. we'll not step using the internet. everything needs chips in it. so certainly there will continue to be bright spots, just a little bit more tethered to reality. even some of the legacy names. i'm bullish on amazon right now which is not a name i'm not normally that excited about. i think aws will do a lot better than assure given the key differences in the customer base around the cloud model. i also think amazon is looking at growth in the future in a smart way. you know i love resale. they're venturing into luxury resale. charles: i saw that. >> yeah. charles: listen, i got about 30 seconds here. another part of your world, the vc private equity world.

i'm seeing and reading more and more of these comments that private equity is the next ticking time bomb. they have not made any adjustments or valuations. they have their books marked in make believe, ones that all comes to reality it could pressure the public markets. do you see that? >> the thing about private equity you don't have to reprice. fidelities, crossover funds are repricing. that will put downward pressure. i think in the new year you will see a lot of them cry uncle will have to mark-to-market instead of mark to make believe. charles: good news they can go on. son to get used louis vuitton stuff, not pay whole price, the regular price. sarah, appreciate it. charles: want to bring in caruso insights president matt caruso. your take in general what we're seeing with the market. we've got enused to living with the extreme volatility.

you made a note in most rise substack, trading fomo, fomo kills. what does that mean? >> hi, charles. i think we're entering a lot of opportunity in this market. we'll be seeing that. i think more of a professionals bull market. by that, 2020 was great, brought a lot of new people to the market. the idea where you chase stocks at any price will not work even if we develop new uptrends and new names and strong rotations internally. the that fomo, chasing intraday strength will be painful even if we enter an uptrend. charles: what will the new metrics be? what are we looking at? one of the things i've done a lot this year on this show segue away from starting with the income statement. now we're looking at balance sheets. we're looking at cash flow statements. what supersedes these things right now? you want to buy something, what is the first thing we're looking at? >> my overall view at this point, we're reaching peak financial tightness.

so even if yields stay high. we're at the peak of heightness in the economy that will have a lot of tailwinds with high growth companies with growth into the future. we want to see high growth and see execution. you want to see the market accepting high growth will likely continue. more than in a really bad economy make sure that debt will be paid and just you know the robustness of earnings is most important. i think we'll shift to an environment where the size of earnings growth will become key here. charles: so, let's say you have a company that's growing the top line which in the past you talked about people get excited but they didn't have to worry about the lot line. the amazons of the world got away with that. but in the beginning they didn't but did for a long time but they proved to the world. mark zuckerberg wants to get away with that. listen we generate a ton of cash, we're a cash machine. but we're spending it. we lost three billion on the metaverse. that is what i'm trying to get

at. what is the critical point here? you say execution, but about bringing money to the bottom line. it has to be profits right? >> absolutely, if you look at wolf speed they're starting with a new silicon carbide which i think will be a revolution going forward. they stumbled on initial execution and the market punished them very severely last night with earnings. investors want want to believe a story, unless they see earnings come to the market that is a unforgiving marketplace. we grew sales, don't worry about earnings. i don't think we're back to that environment. i think it is professionals bull market if we're starting one where -- charles: full subscribers. i'm getting crushed in it. i'm holding because of positioning in the ev space. we know what will happen there. what about old economy sufficient? caterpillar had amazing number. honeywell had a good number. are you looking there also? can they fit the criteria where you say professional investors grow the top line, smart

management. execution, solid stream on the bottom line? >> yeah i think there will be strength there, and i think it has brought renewed attention to those names which for the longest time were ignored. however, we've seen such a dramatic drop-off in high growth. so if you look they mostly topped in february of 21. they have been crushed. i think anyone who is in that space on a relative basis going forward will outperform. i think ol' economy will do especially those that are growing like you mentioned some big names are doing well. if you want the relative outperformance i still think it will be new economy, but new names, not the big four tech like you mentioned earlier on the segment. charles: right. >> but the n.o.w. names delivering in this environment. i think as interest rates come off, as peak tightness ends, they're going to get tailwinds over the ol' economy stocks. charles: yeah. that is interesting because that's a smaller window obviously to your point if you can find those names you should do well. matt, thank you very much, appreciate it. >> thank you for having,

charles. charles: we'll continue with the discussion about the federal reserve of the let's face it our fate is in their hands. the odds of them actually executing a soft landing. meanwhile the m2 money supply fell by a record $129 billion in september. does the fed look at that i'm trying to figure out what they will use to make the decision. no,nomi prins has been one of te chief critics of the fed. she's next. ♪ ♪limu emu & doug♪ it's nice to unwind after a long week of telling people how liberty mutual customizes your car insurance so you only pay for what you need. showtime. whoo! i'm on fire tonight. (limu squawks) yes! limu, you're a natural. we're not counting that.

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charles: report, so the gdp number came in above general consensus, right? the market up, in part to that. we're giving a lot of this up. the narrative could be changed within the next two hours. but there is one thinking we saw in there. consumer spending did slow. really the number was made on energy. so inside there are many people wondering maybe soft landing? could it be the recipe? joining me bring in economist nomi prins. so lance robert just said the fed doesn't care about these inverted yield curves even though everybody on wall street looks at them. greater and greater signs there will be recession. only debate will be how deep the

recession will be, how deep and durable? what do they look at? if they saw today's gdp number, would it move anything, move the needle there? >> no. in fact it would make them continue to do what they're doing. bottom line gdp, relative to the inflationary figures we saw better but i think it is temporary. i think the number will be revised down. a lot going in there are consumer prices and trade. a balance of things saved that overall number. but we'll get into a point where energy prices will be going back up. they're going to be because of the global market. natural fast, how we electrify our country, everything else. that will cause inflation to go back up. i think the fed is looking at top line inflation. it is not looking at money supply. it is not looking at the economy. not looking at people's hardships. looking at the top line number. charles: this is nuts to me. you mentioned money supply. bring it up to the audiences m2 fell by a record a record,

129 billion in december. deposits have been falling. i can't see if you're at the federal reserve and you seeth sort of sharp reversal of the supply of money. liquidity is an issue. velocity of money never materialized. do they write this off? >> remember a year ago powell said in front of congress said m2 doesn't have anything to do with the economy. it is significantly down this time. they're not looking at it. they're not looking at the actual money the system how that impacts the economy. they're looking at top lynumers b they're fighting inflation. they did not notice it what was happening happening when it was growing. charles: they made a mistake with the transitory. i think some of it was a mistake. i think they were buying themselves cover to try to work on social engineering through fed policy. they tried as long as they could. they had to revert back. so you have to know that there are certain lessons learned from

their methodology. that they have to change their models. you know, with respect to inflation, and how, you know how durable it would be. now to how deep, what kind of threat we have with respect to oncoming recession. so, if they're not going to do that. that means tomorrow is huge with the pce number. how do you see this coming in, this inflation read tomorrow? >> i think we'll see a pretty consistent picture of inflation. it might come down a little bit. the net result it will still remain high, cost of fuel remains high, cost of production remains high. even if it comes down a little bit, we've seen prices come down a little bit. i think that will be temporary. they won't think they should take their foot off the gas of rate hikes. i think at the next fed meeting they will change their language. charles: okay. that would give wall street hope. maybe they're not just completely out of their minds. >> that's right. >> i have a minute to go. i want to ask, because wealth destruction is their goal, the reverse wealth effect. it seems to be centered 60/40

portfolio, markets, retirees, people who are retired. one of the big problems in england is the pension funds. no one is talking about that in this country, particularly how vulnerable pensions are with $15 trillion degraded from the markets. >> what happened in the uk, pension funds are in long-term assets, long-term government bonds. same thing here along with riskier stuff. when the bond prices fall as they are, rates going up so quickly that is a problem for pensioners. there could be shortfalls paying off pensions. that will require the fed to step back from the quantitative easing component, from the quantitative tightening, stay with quantitative easing because they're going to have to recognize and they already projected they would tighten more than they have from a quantitative tightening perspective. they are not doing that because they can't. charles: right. >> i think part of that is the problem could occur here. charles: you know it is interesting, i remind people, as much as people say hey we want to see the fed pivot to start to

cut rates, when they cut them market initially goes down because they wait for it to become an emergency. then it is an emergency. that means we're in trouble. it looks like we're on the same path. we'll have to be in a clear emergency before they switch to make the right change. >> that's right. i think it will happen in three stages. i think they will stop raising rates as much. they will go to neutral. eventually they have to cut because things will look bad to even them. charles: thank you very much. coming up my take on all the doomsday warnings. not what is happening near term with the fed. i'm talking about policies that make it tough to stay number one. we'll focus on this market. incredible bifurcation on your screen there, folks. what does it mean. we'll continue with the fed, because they control everything right now. we'll be right back. ♪

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♪. charles: welcome back to our special "making money" from washington, d.c. today's gdp report, and some other things, giving maybe renewed hope for a soft landing. with me invictus research analyst mike singleton. and, mike, let's hit it right there, by the way, love your research and also that is one of my favorite poems so it's a two-fer. we're talking during the break. you're not in the soft landing camp it doesn't seem? >> no, not at all. thanks for having me, charles. it is helpful to define what a soft landing is. most people think the labor market is safe. we'll not see a meaningful spike in unemployment. generally the bulls when they throw the phrase around, they refer to payroll data really strong. initial claims. charles: it has to get a little weaker for the fed to stop, right? we know the fed will not stop until unemployment goes to a certain level but it won't, it won't all be so deleterious to

the economy. so maybe 5%? i mean is that too much? would that be too much? >> i think that is is where the fed gets it wrong, summary of economic projections the fed forecasts pretty much everything, including unemployment it is linear. unemployment increases little by little, we increase rates incrementally. the way it works out in history it is not linear. unemployment increases a little, a little, then a lot. charles: that is when they lose control. >> i they the fed will think they time it perfectly, to thread the needle is fishful thinking. charles: the next conversation become looks like we're going into recession. >> uh-huh. charles: how deep will the recession be because that means a lot with respect where the stock market goes. >> that is true. stocks grow in the growth cycle. whether growth is accelerating decelerating more so whether the nber call as official recession. charles: i don't think anybody cares.

by the time they call it this whole thing might be over, who knows. >> the best thing, look at growth cycle, leading indicators. we track dozens of leading indicators at invictus. pretty much all of our leading indicators are pointing in one direction, that is down. the leading indicators, 12 months out, 15 months out, the are pointing down. we have declining growth for a long time to come at this point. charles: everyone is saying the fed will break a few things. they're already breaking the housing market. a lot of people are not necessarily taking that seriously but they should, right? >> absolutely. the housing market is arguably the best leading indicator we have. it is one of most interest rate sensitive constituents of the economy, which makes it the most sensitive to monetary policy. so all you have to do is look at mortgage applications. they're at precrisis levels. great financial crisis levels now. charles: really? >> look at nhp index seeing most rapid rate of decline since the great financial crisis again. new home sales down 42% off

their peak in 2020. the housing market looks very, very weak. the implication, six to 12 months that will flow through the rest of the economy. charles: i started the show with the premise maybe now about old economy stocks versus new tech. you said they're both going down. i have 30 seconds. wrap it up for us. the next six month how does it look? it doesn't sound pretty. >> growth will continue to decline. that puts pressure on every risk asset including stocks. we expect value to outperform growth and to simplify -- charles: outperform means they go down less though? >> correct. with fed tightening we see reltivity outperformance from tech stocks. charles: thanks, mike. i want to bring in kevin smith. start with the idea of a soft landing. do you think it is achievable? >> well, we're a little bit more in the camp that we'll have, we are going to have recession but it is going to be a softish kind

of a recession but still a recession. more of a stagflationary type recession and the reason there is, the labor market is still pretty tight. so unemployment will go up but it, you know, it may not shoot up as much as, as, you know, really bad recession. and, on the inflation side you know, there is still a lot of opportunity to, to surprise on that side and, that can make nominal gdp look a lot better than, than it may really be. charles: sounds like you're not far off a so-called soft landing. what would that mean for the broad market? >> well we think there is an opportunity, really what we've been calling the great rotation. there is opportunity to really rotate more on the long side into, into materials names, into oil and gas, energy, oriented names. more inflation hedge assets

where the earnings growth is still really strong. the multiples are still really low and, there is a lot of upside in this type of a market. >> a lot of mea culpas out there today on folks who pounded the table on meta. you in your october 19th note actually flagged the company. that they can only grow much. the issue expanding their businesses should come as no surprise but obviously has been a surprise since october. even to this morning names are taking a pretty big hit. at what point do they become value stocks? >> we think there is still more downside in megacap techs. when we look at comparisons to the tech bubble in 2000, you know back then the top 10 tech stocks were made up about 30% of gdp on an enterprise value to gdp basis. just at the beginning of this year the top 10 tech stocks reached 56% ev to gdp so these

stocks just got too big coming out of covid with all of the stimulus and so there is still a lot of downside, you know, ev to gdp among these top 10 stocks today is still 30%, still what it was at the peak of the tech bubble. we look how cheap they got to the bottom of the tech bust. they got down to 6% of gdp collecting tiffly. this is one metric we look to see valuations still, i'm not saying we'll get down to the lows of the tech bust but there are still more to fall. charles: i mean, i mean these are better companies, more mature companies and they do make a lot of money but your point is well-taken. so how are you navigating this? someone watching the show. they're licking their wounds. they want to stay in the market. what is the best way to sort of navigate it from hire? >> we like rotating staying with

leadership names leading all year, the oil and gas stocks in particular. looking to other more beat-up sectors on the value and inflation hedge side of things and materials sector. so we like, we like precious metals stocks as well. and, there is a lot of interesting plays especially on the exploration side there. charles: kevin, thank you very much, appreciate it. folks, coming up, the monumental problem of congress trading stocks. too many people are coming to d.c. and getting rich. you're fed up with it. so am i. tweet me @cvpayne. we'll share some thoughts about it. we'll talk to chip roy what can be done about it. my next guest is steadfast staying in this market. i want to ask him about pessimism. it is at a record high. don luskin says don't worry about it, invest smartly. he is next after the break.

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♪. charles: all right, so gdp, you know, you will hear a lot in the media. i saw a lot of headlines, oh, it was great. it beat consensus, that is the biggest scam out there. consensus, what is real life? by the way this number beat cone census because of exports of petroleum products. 2.6 is better than consensus. face it would be a lot lower that we're exporting the main thing people want to get rid of. also for some a sense of relief. take a look at this. this is the atlanta fed. wall street thought would really happen. 3.1% where they had it. there is a lot to go through here. there is a lot to figure out here but the fact of the matter personal spending was a lot lower, and other issues there worry me a lot. i want to bring in trend macro

chief investment officer don luskin. and, don, when the number came out the market sort of reacted in a way, sort of like you know what? maybe they can pull it off. maybe they can engineer a soft landing that is the theme of the show. so far no one said yes. so what do you think? >> okay. i guess i will be happy to say some version of yes. i mean how about like taking yes for an answer? this was the first positive gdp quarter this year. q1 was down 1.6. q 2689 was down 0.6. we're up 2.6. all year financial conditions getting tighter and tighter thanks to the fed. based on what gdp is doing, sounds like gdp will be better fed hikes to 5%. the more they hike, gdp gets better. explain that? charles: again you know, you take out trade, and

non-residential invests because that is getting hammered as well, still a complicated, not a pretty picture. real gd reflects the weakness in housing but, from here is saying the fed is not looking at anything other than your key inflation metrics, right? that cpi, pce, which comes out tomorrow. >> well, you know, the pce number is actually kind of snuck out today. with we'll know tomorrow is september's monthly number but september is embedded in the q3 numbers we saw today. that was 4.2% year-over-year. which is the lowest in 7 quarters. i happen to think what the fed is looking at is not inflation at all but the labor market. they're telling uh-oh, my god even if inflation goes down we have to keep at it, keep at it, because it might go up again. the only gold standard we have knowing we're doing our job is throwing two million people out of work. well, even that is not working

we've now had three quarters of job growth that is just off the chart in a labor market that is supposed to be tight right? and the weird thing is, we had the best job growth in q1 with gdp negative. we still have job growth in q3 when gdp is positive. i'm really beginning to think all these indicators, they don't correlate with each other. they're topsy-turvy. you get 3,000 phd economists at the fed supposedly looking at these things but they don't make any sense. charles: right. >> so what would you do if you were jay powell? i tell you what i would do. i would slow down because our data is not giving us the high reliability view that it normally does. this is the time to slow down before you make a stupid mistake. charles: yeah. you know, unfortunately he he thinks a stupid mistake is

pausing. that he will not make two stupid mistakes in a row after the transitory debacle. every time you come on the show no matter what the markets are doing you're steadfast staying invested in this market yet we're seeing pessimism readings at record breaking levels or near record breaking levels. how do you explain that? >> oh, my god, that is the easiest question you ever asked me. the more pessimistic investors are the more bullish you have got to be. everybody who can sell has sold. charles: don, why even, professionals investors, active money managers are not exposed to the market. mutual funds have more cash than ever. hedge funds are short the market. why are professional investors understand the cyclicality of markets, for the most part they go back up, stay up, why are they so pessimistic? where is all the doom and gloom coming from? >> it almost doesn't matter because what their pessimism has done forced stock prices down to

a point even if they're right they won't make any money on it. we had 27% correction in the s&p 500 in nine months, right? you can be right about a hard landing, and you won't make any money on it because stocks are already down 27%. so the contrarian has got to say look at that kind of discount i'm buying stocks. if i'm wrong to be optimistic i won't lose anything. but if i'm right to be optimistic, it is all upside for me. that is the way to play this gehman? charles: hey, put it out there, you laid it out there for us, don. appreciate it, my friend. >> thank you. charles: there are so many guests like don, so many ideas, so many different things. there is never enough time. then i got a few things i like to say. i invite you to read my daily market commentary every singer gell day. it is at wstreet.com. i know you love it. i've been pounding the table, you've been pounding the table about lawmakers trading stocks. you do think it will ever

happen? tweet me @cvpayne. i will tweet back at couple of you while we wait for congressman chip roy and get his stance on it. he is next. ♪ moving forward with node- positive breast cancer is overwhelming. but i never just found my way; i made it. and did all i could to prevent recurrence. verzenio reduces the risk of recurrence of hr-positive, her2-negative, node-positive, early breast cancer with a high chance of returning,... as determined by your doctor when added to hormone therapy. hormone therapy works outside the cell... ...while verzenio works inside to help stop the growth of cancer cells. diarrhea is common,

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charles: so new survey rather finding that half of voters now say they strongly support a ban on stock trading for lawmakers. that is a 5% percentage point move since january. as more media pick up on hypocrisy of government officials who profit off the privilege of information the public doesn't have access to. congressman chip roy cosponsored a bipartisan bill that would ban members of congress pro trading individual stocks. congressman roy, i watched you before you went to congress, behind the scenes, in front of the scenes, with economic policy i always thought were common sense first and foremost i put it out there for the twitter followers. craig says how about limiting what they trade in a year? i think telling people they can't trade rather would open up a can of worms. who is next, market makers?

i think he is getting this wrong. market makers don't get to make laws. >> we have have a whole bunch of members of congress trading securities voting on matters that allow them to enrich themselves. i think that is problem. joined with my friend be a gal spanberger to do. put it in blind trust. i get it, you come into congress, not everyone to dump, sell their securities. had a loss on january 3rd the day they were sworn in. we can solve the problems. one possible solution, eliminate the buy side. hold what you got. sell transparently, but you will not bye new equities in office. but what you shouldn't have it is absurd to have paul pelosi or any members of congress day trading. >> people getting rich. people coming to congress, i was a cobbler, made it to congress,

came in 100,000 net worth i leave with 10 million. this is pissing people off. >> yeah. charles: we get the little teases, we're looking at it. all of sudden days later we'll shelf it. everyone sees this but how come nothing is happening? >> well, what you saw democrats do was they shelved it. why why? >> nancy pelosi cheffedded it. she is not exactly the poster-child for doing it the right way. they wanted to deep-six it. they came up with a bill that was so convoluted, complex, didn't include us in the conversation, so they ended up killing it. i hope we have serious conversation among republicans when we take the house. we will take the house. charles: face it a lot of republicans are guilty as democrat. >> no question. charles: not just the money, representative roy, the amount of trading. i see people doing 300 trades. how the hell do you represent folks out there when you spend half your time raising money for the next, to be reelected, the other half trading the markets. you can't represent the people.

>> there is difference like i said you come in holding stocks that your grand dad passed down to you because you worked at phillips 66. that's fine. i don't begrudge anybody ability to do that but you have members of congress day trading on a active basis. charles: that's nuts. >> we should eliminate. that we can and we should i hope republicans take up the man tell. charles: election, economy, inflation, number one by far for the midterms. democrats finally realized that. they pivoted from social issues. they say republicans would only make inflation worse. president biden taking a victory lap off the gdp number today. what is the counter though? when the question is asked, what would republicans do to curb inflation, to change the direction of the economy, what's the answer? >> i think there are two very obvious things. number one stop spending money we don't have. as milton friedman famously said inflation is caused by one thing and one thing only. that is government. over the last several years we dumped, what five trillion dollars in the name of covid?

five trillion dollars we dumped. what do you think is going to happen? of course you will have inflation. right over there, that building, we spent obscene amounts of money. we printed money at the fed. charles: sure. >> then the second thing is, you cannot constrain the free flow of capital to go into the best production of energy possible. that is what we're doing. between esg. between regulations coming out of this administration we're clamming down on producing oil and gas and nuclear power in this country. as a result our grids are unreliable. our gas prices are high. that transfers to all of the goods and services this is all just unicorn fantasy energy policies by radical left. that is impacting every american's pocketbook. it is killing our ability not only to have affordable and strong economy with affordable goods and services it is killing our national security. charles: the sad thing we see the worst-case scenario in europe. we have the oil. representative roy, thank you so much. appreciate it. >> appreciate it. charles. charles: we'll be right back.nca

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charles: so earlier today i had the honor of addressing and giving a speech to the national chicken council is, really hard working men and women that, let's face it, kept us fed during the pan dellic. i really want to say thank you very much for the generosity and hospitality, and lunch wasn't too bad either. [laughter] you know, liz, when the chicken council calls you up, you mow they ain't serving burgers.

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