tv Varney Company FOX Business November 9, 2022 9:00am-10:00am EST
>> outside of the state of california, democrats held up increditably well and i think you'll see joe biden announce his candidacy for presidency as a result and i think donald trump will announce his candidacy and i think the public wants something different than that show. maria: brian, real quick. >> people vote for politicians that put up results. maria: dagen has the last word. >> it was whoa is joe biden and not a thing on biden and the disastrous policies and he'll use his arrogance and think he can win again in two years then maybe beto o'rourke finally goes away. the walking green back bonfire that's beto o'rourke. maria: we'll see if the republicans can push back on the climate change agenda with the majority. great show. thanks for being here. "varney & co." begins right now. stu, take it away. stu: good morning, everyone. despite inflation, crime, gas prices and the border, there was no read wave.
republicans are likely to take the house, yes, we can say that. control of the senate is in doubt. disappointment for the republicans and a pleasant surprise for democrats. plea races that stood out for me, here we go. john fetterman won in pennsylvania. he beat dr. oz by roughly 3 points. kathy hochul won the governor's race in new york. she leads zeldin by fourly 4 points, actually a bit more than that like five but zeldin has yet to concede. ron desantis won the florida governor's race in a landslide, it was a red tsunami, a 20 point advantage over democrat charlie crist and he was the night's big winner and he's now seen as a presidential candidate and that's not going down to donald trump. he threatened to reveal personal information about desantis if he runs for the presidency. bad move. trump is the past. desantis is de future.
front cover of the new york post today. trouble in arizona with voting machines in maricopa county around phoenix. long line as the polling station and results in the vital senate race and governor's race delays. unacceptable says gubernatorial candidate kari lake. very different from florida where desantis' landslide was reported by 9:0. we'll -- 9:30. we'll have more results throughout the show. let's get to the money the day after the election. the dow down about 160, down on the s&p 64 points low for the nasdaq. expecting gridlock the market rallied before the election and looks like we have gridlock and stocks are not really moving that much. crypto moving big time and south. bitcoin is close to a two year low and crypto exchange is bailing out its competitor ftx. bailouts mean instability and bitcoin back to $17,000 a coin. you got to stay with us, folks. we may be able to call one of
the close senate races during our show today. it's wednesday, november 9, 2022, the day after "varney & co." is about to begin. ♪. stu: keep on rocking in the free world, is that what i'm hearing? it's the morning after the election, i'll say it again, no red wave. four senate seats still undecided. all right, good morning, lauren. take us through the rest of it. lauren: the jump ball in the senate. the calls in nevada, arizona, wisconsin and georgia still too close to call. let's take a look at wisconsin.
senate tar mark kelly up 52-45 for blake mariss and could come down to georgia, again. as herschel walker and raphael warnock headed for a runoff. show you the house and balance of power really quickly. 64 seats. stu: a good roundup, thank you very much. jason chaffetz has been up all night and stayed up with us tonight. why was there no red wave? >> it's two races. one, you have to look at florida. huge red wave. ron desantis, marco rubio marco rubio, what happened in florida, huge miami dade shift that was monumental. and republicans better look at that. but the rest of the country, huge disappointment for
republicans. with everything from immigration and put on the list and the president ineffective in the ability to communicate how in the world are republicans not winning those seats the country said we're off track, incumbents won more than 98% of the vote. stu: interesting. with a small majority in the house if that's how it works out, what does that mean for kevin mccarthy who should become the next speaker? >> you say should. it's scrambled eggs, runny scrambled eggs at this point. i don't think anybody is going to buy that. a, i think republicans better take control and if your margin is four, five, six, seven seats, i think it's a real toss up. i don't know he necessarily gets to the finish line. republicans gather next tuesday and they'll vote. but the real vote happens the first part of january. i don't think anybody necessarily steps up and runs against him, but can he garner 218 votes the first few days of
january? very uncertain at this point. stu: if he's only got a small majority, won't that make it very difficult to roll back any of president biden's agenda and to change that agenda at all? >> leadership i think is the biggest question, they will unit in being able to push back and hold the line on the president's agenda and all spending originates in the house of representative per the institution but when you five or six members can gather together at any given time, it's nothing certain. >> stu: do you think ron desantis is the de-factor leader of the republican party? >> he per personifies what the republicans want. wonderful wife, great human story and ron desantis is leading the story. stu: to todd piro, is desantis e leader of the republican party? >> florida is the leader of the republican party.
you look at how florida went. everything republicans wanted to do they did in florida. the same cannot be said for the rest of the country. we have to wait on other states but you're not going to see the results that we saw in florida. they didn't just win in florida, they whopped and got their policies across the finish line in large part because of the disaffected nature. >> todd's point is exactly right and i think that nevada goes to the republican and i do think masters still pulls it off in arizona. those late votes, those are same day voters, those traditionally go to republican way. i'm dade has second congressional district in nevada and he's winning 60/40 and haven't counted that vote and less than half has been counted and nevada clearly in my mind, clearly goes to laxalt. >> we could say republicans could take the race. >> they could. stu: at this point, we don't
know. next case, speaker pelosi easily won reelection. lauren: i guess you can say she's considering her next play but it's all up in the air right now. >> you said in an interview yesterday what happened to your husband could have bearing on whether you decide to run again. what about if democrats were in the minority, would that have an effect on your decision about whether to run? >> well, i'm not predicating any action of democrats not winning tonight so that's a conversation for another day. let's just get out the vote and again, with hope. lauren: she's deciding how she's going to shape her legacy right now. stu: i can see the argument here. if the democrats are in the minority in the house of representatives, nancy pelosi is not the speaker.
she's gone. lauren: the house has to vote on january 3 for the 118th congress. stu: there's no way she can continue to be speaker if the democrats don't hold a majority in the house, case closed. >> clearly. stu: i don't care if she retired or not after being reelected for another term, that's not the issue. >> she might be the minority leader if she decides to stay. she's raised more money over there and they may do that and keep their leadership team in place. look, democrats were going to lose big and going to be 20, 30, 40 seat margins for republicans and they can look at this and say, yeah, we lost a couple but we did it better than expected. stu: is gridlock what you wanted in >> gridlock is good from a market perspective because we
don't have to worry about tax reform or major regulations over the next two years. overall gridlock was a best case sensorscenario but at the end oe day, nothing changes and investors need to look at this rally, this bear market rally and in the coming weeks, l looko reevaluate their positioning because in our viewpoint, we are heading into a recession, earnings report after earnings report is confirming that the next few months will be the time period where investors are the opportunity and witnessing one of the biggest from our lifetime imflowedding from our eyes. eye. stu: we should sell or your clients or you should sell into any rally? >> yes, we've been doing that and have a strong cash position, stuart, as you know and cash is king for investors and i think the toughest thing that
investors are having a time with is they continue to hold onto stocks they love hoping it'll come back. it's all about math. you lose 50% in a position, you need that to come up by 100%. hedge your bet, have cash because if we do go into a recession, those stocks that you love, you're going to be able to buy at a deeper discount. stu: okay, we'll wait and see. eddie, thank you for being be us on an important day. what's coming up here, futures, red ink and down down about 200 points, got it. speaker pelosi insists president biden's low approval rating did not hold democrats back. >> has he been a drag for democrats? >> no, not at all. he's been a great president. numbers that relate to the president are really not that bad. stu: okay, with just a small loss in the midterms, president biden may feel he has a good shot at a second term. more on that one for you. there was a red tsunami in florida and governor desantis won second term term for a land.
stu: the day after the election and here's the state of play on the market. some selling, dow's down 160, a small loss for the s&p and for the nasdaq and now this, republicans might not be seeing a red wave across in this florida all though in florida it was a red tsunami and look where ashley webster is, he's in the
villages by the way. ashley, i guess you're surrounded by some very happy people? >> reporter: they're very happy people and what does ron desantis do? does he run for president in 2024? they said no, they want him to stay as governor or they have to clone him as mike said. clone him and one run for president and one for governor. we're at the scooples ice cream parlor in the village. it's a very popular place here. ray, what was your summation i guess of what happened in the election yesterday? >> well, florida was great. little disappointed in the rest, but i think it worked out pretty good. >> reporter: pretty good for florida. victoria, let me ask you as i crawl across the floor here. what was your take? >> it was discouraging. >> reporter: in what way? >> the rest of the country everybody is planing about what's going on but they didn't come out to vote for that.
>> reporter: why do you think that is? >> there's numerous reasons. >> reporter: yeah. all right. >> i'm happy with florida. >> reporter: there you go. they're happy with florida. maybe not the rest of the country. let's bring in larry here. larry, what's your take on all of this? >> i'm like the rest, i'm really proud that the state of florida supported ron desantis and the rest of the republican candidates. disappointed at places like pennsylvania. i don't know what they're thinking, but anyway we're happy with what we got and we're proud republicans. >> reporter: there you go. all right, ed, let me ask you. ron desantis, you want to keep him as governor, don't you? >> yes, i do. i think florida was the big winner last night. i think we're going to be the enemy of the country and it was a big win for the home builders. people will be coming here in droves. >> reporter: they have been coming here in droves, we know that, stu. there you have it. lots of smiles but to your point, a little disappointment what happened around the rest of the country. by the way, if stu varney wanted to run for mayor of the villages, i think he'd have a
good chance. what do you say? yeah. stu: that's very nice. thank you to the villages. thank you indeed. moving on, congressman mike waltz, republican from the state of florida joining me. red cinnamomi in florida, does desantis' win put him on track for a presidential run? >> stu, i think mayor varney is a great title for you. stu: mayor? >> down there in the villages, i split the villages with another member of congress so just so many wonderful people there that are so happy. a lot of them mo moved from outf state and they're so happy with how our state is run and saw that at the ballot box. it's not just dis-sanities' historic win -- desantis' historic win and went from barely winning four years ago to 20 points. same with rubio and there's a super majority in the state legislature and florida will stay free in terms of any future aspirations for the governor,
i'll leave it to him, stu, but i'm hearing what ashley is hearing a lot in that people want him to stay as our governor for the next four years because he's done such a great job and finally, stu, we flipped, we did our part to take back the majority in the house in flipping four seats in florida alone. stu: you did. governor desantis celebrating his decisive victory and former president trump is trying to take some of the credit. watch this. >> we faced attacks, we took the hits, we weathered the storms but we stood our ground. the people have delivered their verdict. freedom is here to stay. >> ron is a person i've always had a d decent relationship w. i got him the nomination because i made the endorsement. he didn't get t i got it.
then he ran and wasn't supposed to be able to win. stu: trump said he'd reveal unflattering information about desantis if he runs for the presidency. what do you make of that? >> well, look, i mean, president trump's endorsement absolutely was instrumental in governor desantis' primary and his endorsement has been and is instrumental in so many of our races around the country because, look, at the end of the day, stu, he it. transformed the republican party in a way for good and making this the working man and woman's party. what we need to figure out as republicans is why the success in florida isn't translating araround the country right now. stu: with respect, congressman, i think the republican party has to do soul searching about the role that donald trump can play in the future. i personally do not like to hear
a former president pass that kind of remark about a competitor in the field. i don't think america wants it. last word to you. >> well, look, i mean if they end up in a primary, stu, they're going to hammer that out but on election night, we need to be celebrating our wins. i don't disagree with you there. stu: got it. congressman, thank you for being on the show. appreciate it. >> thank you, stu. republicans were able to flip democrat-run districts in florida and tell me more about that one. >> they're selling their wins and florida flips the focus on republican and anna luna taking the 13th congressional district defeating eric lynn with over 53% of the vote and corey mills expected to win back a house seat held by the democrats for the past six years and army veteran defeating karen green in florida's seventh congressional district with over 58% of the vote and i spoke with him this morning about his projected win. >> democrats have basically had
the american people finally tell them definitively we will not stand for your communist and perverse ideology and tired of chief political rhetoric and action and they have that with me. >> stu, we're looking for a reason as to why florida did so well and florida candidates did so well. cory mills has been on our program for the better part of the last year and a half and when he comes on the program, he has solutions to problems and doesn't just complain about the problems. when the autopsy of last night is done, you'll see a lot of republican candidates who just complained but didn't have the solutions. cory mills offered the solutions and part of which why he won. lauren: can i say desantis won miami dade by 11 percentage points. stu: that's huge. huge. lauren: i know. just to help underline the success the red wave that occurred in florida. stu: i'm looking at futures. down about 200 points going to the opening bell and 200 on the
stu: stock futures showing a loss at the bell down 200. no red wave. are the markets disappointed? >> yes, very much so. i think if we had seen a red wave or anything close to a red wave, the futures would be up a few hundred points and down terms investors have been positioning for something of a red wave victory and friday investors started coming in and buying the bottom and traders came in and it was a lot of call option buying the last couple days and doesn't look so good this morning. stu: tomorrow, the big deal will be the consumer price inpolice station report and are you expect -- inflation report and will you expecting 8% tomorrow and if that's what we get, what
happens to the market? >> i'm expecting an 8% print on the handle and i follow the cleveland feds and now cast for cpi inflation numbers and they're very, very accurate. the closer you get to actual print day, they're pretty spot on and they're about 8.2 so i'm in the 8% group also and and the market will probably digest it and doesn't and decides more front loading and getting back to where we were and maybe test the lows in the couple of weeks and that's how important the cpi numbers and how investors digest it and what they think will happen next. stu: the inflation report is more important than the aftermath of the election yesterday? >> it is. it's going to be now because we didn't get -- because investors who were hopeful didn't get what they wanted and now the focus on cpi and elections is behind us and we know where that -- where
everything is falling out and now and how bad inflation in the country and how will markets react to continued hikes in the federal reserve rate hiking policy regime, which is defedevastating in the longer t. stu: 30 seconds, instability in the crypto market. s that ha affected stocks in a negative way? >> not directly. i think indirectly a lot of investors who are been speck rating in the crypto side of things and retail investors disable in the crypto markets and i've not been a fan of the crypto market but i've said simply there's no restorative value and they're impacking retail trader. >> thank you very much. stu: it is 9:30 and we've just opened trading on watt street. opening for the downside on the dow industrials losing about 200 points, just a little over a
half percentage point. not that many winners among the dow 30. see when they all open of course. the s&p 500, where's that this morning? opening on the downside only just one. down 0.62% and nasdaq down 0.83%. losses all across the board. how about big tech this morning? we've got a mixed picture there. meta the only stock that's up and gone back above $100 a share and google, microsoft, apple, amazon all on the downside. let's get to individual stocks and there's a big loser here. disney down 8, 9% and, susan, they got a streaming problem? susan: i think they have a spending on streaming problem. the growth was better and subs was 50% more than analyst estimates and added over 12.1 million new signups over the summer and that takes a total subscriber base up to 164 million around the world. but then getting those eyeballs pretty expensive. disney+ losing $1.5 billion in
the three months and disney ceo bob czapek calling peak losses and guiding for profitability by the streaming service by 2024. by the way, we're down despite record theme park sales. you know, disney has been raising prices to some would say astronomical levels to get into disneyland and disney world and they missed on profit and sales because of all the spending on streaming by $15 billion on content each year. that ad tier coming in december and disney cuts on marketing and content budgets but the worst disney earnings reaction going back to the 1990s. stu: ouch. stu: that's about 40 years or so. susan: 30 years down 10% in the after hours. by the way, i want to note, amc, the movie theater chain, they loss less men than expected and sales beat but the concerning part they said soft box office receipts over the summer, that's not good. remember summer is traditionally the block buster season.
if they're not getting people in, that's a problem. stu: getting to meta and just above $100 a share and we know i believe how many employees will get laid off. it's a big number isn't it? susan: cost cutting is a reason why the stock is surging up 6% back above $100 a piece and 11,013 of the work force being laid off first time in meta's 18-year history and hiring freeze extended till at least the first quarter of next year. recruiting, business teams will see most of the layoffs and zuckerberg admitting in the layoff e-mail that he overhired, he was too optimistic on growth and meta reportedly added over 40,000 new workers sings the pandemic over the last two and a half years and that's why the stock is down 70% and he's been spending $50 billion on the meta verse this year and deal with tiktok competition, privacy changes on app and will slowing ad spending so he has a problem. rally silicon valley as a whole has a problem with the six figure salaries and they're either being fired or frozen.
sales force also cutting hundreds of jobs as well. stu: the meta verse didn't get good reviews so far, did it? susan: less than a million of the headsets in active use and spending $15 billion this year and almost $20 billion next year and they're not making much money after that yet. stu: get to tesla because i believe musk sold $4 billion worth of stock recently. susan: yeah, isn't it interest that he sold after he bought instruct the witnesser because a lot of -- twitter because a lot of analysts thought he needed to sell them to fund the twitter takeover deal. 23 you do the math, that's $22 billion worth of tesla stocks sold last year and $8 billion in april, $7 billion in august. if you add the $4 billion up, that's $20 billion worth of tesla stock sales this year. now, musk owns around 25% of tesla stock and options and represents around 80% of his wealth. we know spacex is a distant second coming to his own personal wealth.
is it a sign that maybe tesla and stock prices hit its peak for the year. stu: could be. would any of this mess have happened at tesla had it not been for the twitter purchase? susan: the reason tesla was under pressure the last few days despite the stock going up and tesla stock selling off and remember you have musk with that $13 billion loan and that interest payment to pay next spring. that's a few hundred million dollars you may have to raise cash for. i want to note that electric cars, you know, it's not an easy business. lucid raised and having a billion in stock sales to fund their car operations and, you know, elon musk talked trace about lic lucid saying it's notn easy business and you need a lot of cash fund. stu: get to the crypto market. that's your area. ftx striking a deal with finance to get bailed out. susan: sorry, i saw bitcoin is at $17,000 because it was barely above $18,000 yesterday when the news hit and looking at lowest in two years now for bitcoin
pricing. really it's all about this house of cards. this lack of confidence in the crypto space so you have by-nans, the world's largest crypto exchange trying to buy out and acquire ftx. bear with me and ask me questions if i don't explain this clearly and obviously it's very complex and what happened is a traditional bank run basically and ftx owned by sam bankman-fried and one of the richest men in crypto and today he's worth less than a billion because of this cascade and what happened is that ftx overleveraged and used own token as collateral and binance, the largest crypto exchange owned by the crypto's richest man had $2 billion worth of ftx coins and he had a collateral call and said i'm going to sell $2 billion in ftx and the
investors started shaking and rushing to cash out bets on ftx just in case that something is happening here and we should know about and the bank run is taking place and ftx didn't have the money to pay out by the rush of investors to get their cash out. i saw cz in lisbon last week and talking about expansion, sounding very bullish on the crypto markets. i didn't get any indications it was happening over the weekend. >> sam bankman dutch fried and it's worth less than a billion. susan: it shows there's gonna be one dominant player. stu: okay, got it, susan, thank you indeed. come back on the big board and six minutes into the trading session down 250 points and three quarters of 1%. dow winners on the screen and top of the list, amgen backseat up there and merck, verizon,
mcdonalds and top s&p 500 winners topped by kroger and solar edge and dr horton there and nasdaq composite and gilead sciences back on the list and ross stores, american electric power. coming up, john fetterman defeated trump-backed dr. oz in the pennsylvania senate race. so does the gop have a trump problem? i'll ask liz peak later in the show. the race for senate in arizona too close to call but listen to what msnbc rachel mato had to said about political intimidations at elections there. >> one of the things we have to think about is the fact that arizona is an open carry state and a lot of far right in arizona has been willing to use their open carry privilege as a form of political intimidation. stu: okay, there's a lot more on the arizona mess coming up for you. the majority of voters say inflation was their number one issue and that president biden is to blame.
stu: governor desantis in florida said his win was a huge win for the ages and donald trump claims trump's endorsement made ron desantis. todd is still with me. it's clearly a split in the republican party, isn't it? >> that split is shown within the republican voters themselves. when you talk to the republican voters, they say one of two things. a lot of what they said, ashley got the sound bytes out of the individuals. i want him to stay governor of florida because there's one sane place in the country if they want trump to run.
the other people say we want the trump without the trump so we want desantis to run in 2024. i think that's where your battle lines are drawn. it's prodesantis no matter which we you look at it but it's going to be a matter of what happens in the primaries. how does that break out over the course of the next couple months if and when desantis decides to throw his name into the ring because what ashley got there at the villages, you hear that so often. i want him to stay in florida so that florida stays free. stu: now, senator lindsey graham, he says this was definitely not a republican wave. roll that tape. >> definitely not a republican wave. that's for darn sure. i think we're going to be at 51, 52 when it's all said and done in the senate. stu: okay, todd, why not red wave? what's your explanation? >> three reasons, two you're hearing a lot about and one you're not. one is candidate strength. you have to look at reality. i mean, you can't just say, oh, we have the best candidates. in many instances, you did not
have the best candidates and that needs to be reviewed significantly going into the next election in 2024. second, power of incumbency. you see these people on your local news, the name hits you over and over and over again so when you go to the ballot box and you're not locked in like we all are on politics, you click the box regardless of whether or not you think president biden is doing a good job. oftentimes that didn't sink up. biden bad, my candidate bad. uh oh, i know my candidate and mark it down and go on with my day. third, the big thing is the youth vote. talking about student loan debt forgiveness for awhile. when you look at how the youth vote broke out, he won gen z, i mean president biden and democratics in the -- candidates in the democratic party. the gen z prevented the tsunami. stu: he bought their votes,
$500 billion. >> he bought it with the notion of forgiving their loans even though it's only $10,000 per person and even though it may not go through because it'll get stalled in the courts. stu: what do you got, lauren? i think you're right and that showed up looking at the squad. lauren: the six members of the squad we elected with huge percentages and aoc and bowman here in new york. 70 and 65% of the vote here if you flip to bowman. omar in minnesota got 75%, talib in michigan with a high vote a. lot of politics are local. they know their districts and power of the incumbent and people know what to expect. stu: 84% of the vote to ariana presley. think through this one for a second.
the squad, they're basically socialists and they've strengthsenned their position and fewer democrats in the house of representatives and they're still there and will have more influence as socialists in the house of representatives than now. their influence went up and not down. stu: per happens and that's very concerning. stu: for someone like me. >> strengths of candidates in the races and democrats could put up my phone and would win in the races. you didn't even have a picture for some of the candidates and showed they weren't real serious about their candidacy but the big issue, people in the districts like free stuff, stuart. lauren: they have their own socialist agenda and more of a head age in congress and seems like they're more powerful in their districts. even more powerful now. they're big headed. stu: here's what's coming up for you, if democrats end up losing control of the house and it looks likely, does president
psoriasis really messes with you. try. hope. fail. no one should suffer like that. i started cosentyx®. five years clear. real people with psoriasis look and feel better with cosentyx. don't use if you're allergic to cosentyx. before starting get checked for tuberculosis. an increased risk of infection, some serious and a lowered ability to fight them may occur. tell your doctor about an infection or symptoms or if you had a vaccine or plan to. tell your doctor if your crohn's disease symptoms develop or worsen. serious allergic reaction may occur. best move i've ever made. ask your dermatologist
stu: red ink in the marketplace and down 250 ons dow and 100 in the nasdaq and some disappointment there was not a red wave. disney way down after a dismal report yesterday afternoon. down 11% and that shaves 70 points off the dow industrials. results are still coming in from last night. we expect republicans to take the house but control of the senate hangs in the balance. edward lawrence at the white house. traditionally the president gives remarks follow ago midterm election and any indication to hear from him today. >> stu, none, there's no events on the president's schedule and the white house refused to commit to a news conference and the white house press secretary saying there'll be remarks at some point. you know, the feeling inside the white house is one of vindication and excitement and feeling president biden's policies will hold off and a large amount of house seats flipping and keeping the senate
close and fox news voter analysis shows 51% of all voters say inflation was the single most important issue and only 32% of democratic voters thought inflation rose to the most important issue. 64% of republicans voted because of inflation and the president's strategy of avoiding battleground races seemed to work. he did not go to virginia for example to campaign with representative abigail spanberger and exempt her seat and the -- kept her seat and the president didn't go to arizona but went so new mexico and san diego. in florida desantis sounded very presidential in his victory speech. >> reject woke ideology. we fight the woke in the legislature, we fight the woke in the schools, we fight the woke in the corporations, we
will never ever surrender to the woke mob. florida is where woke goes to die. >> president bind has called a number of the democratic candidates who have won those big races. back to you. stu: all right, edward, thank you very much indeed. aan economist joins me now. all right, john, is gridlock, a lot of people say gridlock is good for the market. is gridlock good for the economy? >> i think it is good for the economy. you'll put a lid on government spending, government regulations as well as taxes so that can only be viewed as a positive. right now we are suffering from too much in terms of government spending, rise in regulations and higher taxes. stu: that assumes we're the small majority in the house. the republicans could actually roll back some of the spending. that's a dubious thing. >> i don't know if they can roll it back but prevent from going higher. imagine the opposite, what if
there's no gridlock. what if the democrats hold onto power in the house and the senate. then i would be extremely worried as would be the markets and who knows where the federal funds rate might be. forget about 5 percent and change, it might be 6% or higher. stu: we feel that the democrats and the republicans are pretty close to taking the house. i'll leave it at that right there. i'm interested in tomorrow, cpi, consumer price index. we've had people on the show saying it'll be the 8% level tomorrow cpi report. what would you do -- what do you say, 8%? >> i think it's going to come down with 8.2% in september year-to-year, maybe it comes down to about 7.9. it'll be close and 7.8% and that's the consensus and 7.8% is much greater than the accompanying 4.7% year-to-year increase by the average wage. so we continue to see the purchasing power of the average
wage getting clobbered. stu: the average wage getting clobbered by the purchasing power. >> it's buying less. stu: that was supposed to be the issue in the election but really it wasn't that strong an issue. certainly not for the republicans. that was -- >> that was the case in the 197 0es and you're bringing this thing up about the strong preference of younger voters, generation z for democrats and what people don't realize is that when we talk about this relatively low rate of labor force participation, which is a fancy way of saying the willingness to work, the big especially decline since -- biggest decline in americans age 20 to 24 years of age thans the laziest age cohort.