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tv   Your World With Neil Cavuto  FOX News  February 7, 2018 1:00pm-2:00pm PST

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sports stars. john sullivan beat everybody to the punch and helped create the modern sports age 136 years ago today. oh, dow. make up your mind. here's cavuto. >> neil: all right. they're trying to get a two-year budget. the markets have had a chance to crunch the numbers. they're down on indications that this whole budget thing, it's not all on the up and up. let's first discuss what happened at the corner of wall and broad where it was just as volatile as some fired it could be. deidra bolton on what happened. >> on what happened, neil. that is the right question. if you take a look at this chart, look at how many mountains and peaks and valleys we had. when we spoke earlier, it was up 350 points. down 127. obviously this is a way that
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we're finishing. some trades settling out. another volatile day in the markets. look at the s&p 500 and the nasdaq, a similar pattern. you can see the same rockiness throughout the day. but one thing i want to highlight as well are these ten-year yields. so up again. 2.87%. you know, this is settling a little bit. this is what we talked about last week when we had the stronger than expected print on the jobs report. the idea of wage inflation having gone nowhere for almost a decade and accelerating quickly and pushing the treasury yields up and making everybody worry that the fed is going to get in here, be more aggressive and there fore make borrowing more expensive. you'll see behind me the oil trades. this is the price today.
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it's a four-week low. a lot of that based on inventory. copper being hit as well. so just this whole kind of volatility, the main line here is it's not just about stocks. it's hitting every single kind of component. every element in the market that we follow. one last thing to leave you with, neil. i know you're talking about following quickly what's going on in d.c. the $300 billion plan. some of the spending i wanted to highlight, the stocks we'll follow as a result of the spending. we've been talking about spending more on military. i took a look at defense stocks and healthcare storm as we. you can see that's defense. if they're going to close for the day, healthcare as well. they're down due to the fact that there's increased spending in theory on dealing with the opioid crisis. so a lot to follow. a lot of moving parts in new york and in d.c. and reaction. >> neil: it's a mess. and to deidra's point, the
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two-year deal to satisfy both parties, both parties were satisfied with essentially hundreds of billions of extra dough that they could spend as they wish. listen to what mitch mcconnell and chuck schumer have in store. >> the agreement will clear the way for a new investment in our nation's infrastructure. >> $20 billion to augment our existing infrastructure programs. >> fund new grants, prevention programs and law enforcement efforts in vulnerable communities. >> $6 billion to fight against the opioid and mental health crises. >> unwind the sequestration cuts that have cut our armed forces. >> $4 billion in defense spending to rebuild and improve veterans hospitals and clinics. >> also provides funding for disaster relief effects. >> $5.8 for the bipartisan child care block grant.
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$2 billion for the national institutes of health. $4 billion for college afford ability. lift funding for domestic programs by $131 billion. the budget deal is a win for the american people. >> neil: all right. that's always in the eyes of the beholder. i didn't make that seem it was only chuck schumer adding to this. the republicans were just as much. in all, $300 billion in spending beyond what we have right now. both the republicans dug into that trough and the democrats. i'm not implying this is just chuck schumer and his piling on. both parties have gone ahead and turned their back on sequestration cuts that they agreed to years ago that was supposed to be an automatic spend backbone in case they couldn't do it themselves. now they have said that's done. that is over. keep in mind, we're looking at a
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deficit topping a trillion dollars on both parties and no indication as to how they will ever address that. peter doocy with the latest. i guess this is not a slam dunk. >> it's not, neil. as you just heard, the senate top democrat chuck schumer likes this deal. he was one of the negotiators. across the capitol, the top democrat in the house, nancy pelosi, really does not like the agreement. here's how much she doesn't like it. for almost six hours she's been talking nonstop about daca protection. but because daca protections are not part of this spending agreement that the democrats came up in the senate, there's no guarantee that she will give her members in the house a blessing to support it. that's why a shutdown is a possibility at this hour. >> this morning we took a measure of our caucus because the package really does nothing to advance a bipartisan legislation to protect dreamers
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in the house without a commitment from speaker ryan comparable to the commitment from leader mcconnell, this package cannot have my support. >> statements like that put the entire package in peril. republicans may not have enough of their own votes to support it without any help. that's because some conservatives are not happy that the spending cap that just went away are not matched by similar cuts elsewhere in the senate-backed bill. >> i think it's a bad deal. i think it's unfortunate this is where it goes. we were in a good position to break this idea that the democrats always get the defense cuts for growing government and growing social programs. it's unfortunate. i thought we were in a good position to win. it's unfortunate that's not where it's going. >> the hallways of the russell senate office building across the street from the rotunda where i am have been clogged for most of the last hour with daca protesters that have been having
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sit-ins and screaming. no doubt lawmakers can hear them. they can hear pressure from constituents about daca, but so far none of the legislation that is being considered by the senate or anything that is set to be considered by the house has any protections for daca recipients. seems like gop leaders in both chambers want to wait until the daca deadline, which is next month. the only thing that could change that is a shut down tomorrow. back to you. >> neil: thanks very much. i want to emphasize this is on both hearts, both parties. it's not just about democrats wanting daca. this is about both parties abusing dollars and cents equally, equally. not one over the other, both are cheating on something they agreed to a little more than seven years ago and they're recklessly avoiding that. that's why interest rates backed up today and that's why a big jump in the dow turned around on
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belief that these guys have created a problem and this next guy agrees. he's a hell no on this budget deal. he doesn't like what he's party has done and doesn't like what democrats have done and doesn't like the fact that we forgot about fiscal resolve. hits alabama republican congressman, mo brooks. a member of the house freedom caucus. you're not a fan of this, are you? >> absolutely not. it is a debt junky's wildest dream with all the spending of money that we don't have. we have to borrow to get and can't afford to pay back. you can see that reflected in the credit markets where we're going to embark on an unending stream of annual deficits, money taken outs of the credit markets that drives up interest rates. it's unfathomable to me that we want to bankrupt a country that took centuries of our ancestors to build but this legislation goes a long ways to bringing about an american debilitating
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insolvency and bankruptcy. i'm shocked how irresponsible this piece of legislation is. >> neil: in just two years, sir, as it's written now, you spend $300 billion more, whatever democrats think of nondefense and it needing it, there doesn't appear to be any resolve to slow the growth of spending now. i did talk about what was going on with things like the ten-year note and all backing up today. i believe in large part due to the government essentially shrugging its shoulders at this. >> the economics are simple. if fox were to borrow about 25% of its operational costs every year before long, neil, you'd be out of a job. fox would be out of business. same thing with family. same thing for our country. people need to look at what is going on in venezuela to see how bad it is when a central government goes in bankruptcy. recently, 800% inflation rate in venezuela. is that where we want to take
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the united states of america with an insolvency of our central government? recently over 12 months period of time, 75% of the venezuelan population suffered an average weight loss of 19 points because they can't get the food, the calories to sustain their body weight. nurses and teachers are going across the border into columbia setting up houses of prostitution, earning money that way than buying food in columbia and hiring mules to carry the food back to their kids in venezuela so they don't starve. again, this idea that we have unlimited amounts of money to borrow is fiction, dangerous and needs to stop here. >> you're right about that. you don't knee to be a democrat or republican to see that. thank you. >> thank you, neil. >> neil: both parties talked about how brave this was to do. how vigilant they were to do the right thing. there's no bravery in going to a restaurant and order an appetizer, main meal, extra
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desserts and wine and charging somebody else for all that. that someone else is else. there's nothing brave about that. everybody signing on to this and patting themselves on the back thinking they have done something dramatic and good for the country, no, no, no. again, that is what rattles the markets and should rattle you. let's go to gary, scott and katherine. katherine, my worry with this is if they call this progress and i'd like to know what lack of progress is. >> you're right, neil. i loved your analogy with the meal. this is what can take the markets down, kneel. the biggest concern for me and i'm bullish on equity markets for a long time now is inflation. if the government goes whole hog on spending as we've seen in the past, that is in fact inflationary. if it's inflationary, the fed has to go to the upside. has to hike rates. the fed hikes rates, we see the treasury breaking 3%. we broke 280. equities won't make it to 3,000
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if you get risk off sentiment, which that will induce. >> scott, the read here is that rates are backing up a little bit in the scheme of things. no need to worry. right now the markets are worried that this is going to be a big jump in rates and where it stops nobody knows. unlike the 80s or anything like that, but high enough to rattle investors. what do you think, scott? >> absolutely correct. number 1 is that we saw a little wobble last week. we thought interest rates might go higher. number 2, if we get a infrastructure spending plan and the government does the spending they do now, yeah, they're going to borrow more money. it's simple. i have an agricultural background. if it doesn't look good, smell good or taste good, it's not good. we can't use common sense anymore. we're back to say whatever we are, 25,000 on the dow. on the way up, it was so overbought.
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we can't pile money in now. 1,500 points, we made to it 26,000. now we're 25,000. we've lost our minds. congress has lost their minds. we have to say hey, this doesn't smell good. doesn't taste good, it's probably not good. that's it. yes, rates will back up if they borrow as much money as they say they're going to borrow and we have an economy with inflation sticking in. there's no other recipe out there to put a cap on stocks like that. >> gary, i'm worried this is what they call progress. then you have to go forward and wondering what would get us out of this or what would calm the markets down. obviously they chewed on this all day. they thought ill of it. >> you know, neil, we've been talking about this for a very long time. all i can continue to say is they continue to taunt the markets, the economy and the w future of this country as this
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money is coming out of the economy. the growth of government spending is obscene. i'll give you a couple numbers here. next year, $400 billion goes just to pay the interest on the debt that they have all created throughout the years. in four years, it's going to be over $700 billion. that's money that could go for roads and bridges, indigent that they complain they don't have enough money about. all that is going to a black hole as we move forward and the trajectory is not changing. even the republicans, the conservatives that say they're for this and if you elect us and put it in the white house, we'll do something. they're not. they're doubling down right now. >> neil can i -- >> neil: i can't. we have breaking news. i do want to get to this idea that this is the start of something worse. they have just made an accord that they hope to stick to for
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two years. a trillion dollar budget this year. that was before any of this. they're drunk with power and your money after this.
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>> neil: all right. well, it's the first thing, a direct comment from the president on the sudden turn around in the markets. the president tweeting earlier today in the old days when good news reported, the stock market goes up. today when the good news comes out, stock market goes down. we have so much great news about the economy. he's wrong on that. the market in the past would seize on whatever it could. good news would be good news. bad news would be greeted down depending how bad it was. sometimes good news would be deemed to be a problem because it would lift up interest rates. so we haven't seen of separated ourselves from market history or how it reacts. whether you like that or not. former reagan economic adviser,
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art laffer. the latest is things are picking up steam. the president is right to say this is in response to good news. wage growth that is now accelerating close to 3% pace. it seems to be the moment where people are scratching their heads saying wait a minute. maybe this will lead to more of a backup in rates than is warranted. what do you think of that? >> what i think is the backward-looking news is good. the employment numbers, the gdp numbers, all of these are good. the forward-looking stuff on this budget, for example, this is a far cry from fiscal restraint and spending restraint. it's not that at all. you know, we need to have -- milton freedman said it all the time. he said government spending is taxation. it really is. they have to get that money from someone and it's from you and me as you said a minute ago. so i'm a little worried about the spending side of the equation. overall, trump has done a good job since he's been in. the markets are up quite a bit as well since he came in.
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>> neil: you know, looking back at ronald reagan, a lot of people have compared the tax cuts, the approach of less government. ronald reagan was big on not quoting markets too much. quoting other things, the growth in jobs, the gdp, those kinds of things. if you had to advise president trump going forward given the volatility of the markets to hang his hat on things that are demonstrable like the pick up in economic activity, like the pick up in companies that are sharing the tax cut loot and let the markets speak for themselves? >> you know, you have to remember that in the first two years of the reagan administration, markets were way, way down, neil. there's no way -- >> neil: i remember when ronald reagan looked like a one-termer. >> yes. the tax cuts took off. presidents should talk about what they want to talk about and make their case the best they can and then have all of us look
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at them and challenge them. this president has done a great job in his first year on if economy. i wish this budget deal were a lot less. i'm much more with the freedom caucus. but i prefer a strong dollar. a strong dollar is very important. that to me bothers me. when you have a weak dollar, you get higher inflation and higher interest rates. that's not smart. >> neil: and this is going to make it weaker. >> i agree. with the tax bill, it's pretty good neil. >> neil: we'll watch it closely. thanks very much. art laffer. we're going to meet the republican congressman that just tried to shut down the president's shut down talk. this time not behind his back, to his face. ♪ ♪
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>> if we don't change it, let's have a shut down. we'll do a shut down. it's worth it for our country. i'd love to see a shut down if we don't get it taken care of. >> we don't need a government shut down. both sides have learned that a government shut down was bad. it wasn't good for them. we do have bipartisan support on these things. >> neil: you know, you have to admire barbara comstock telling that to the president of the united states. a lot of people leave the room and then start talking. barbara comstock now here with us. good to have you here. >> good to be here. >> shepard: what did the president say about that? >> we were talking about the ms-13 gang problem. that was the purpose of the whole meeting. the president is understandably frustrated that right now it's
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not illegal to -- we can't remove people that are ms-13 gang members here automatically and i have a bill that has passed in the house with bipartisan support to make gang participation or activity a removable offense and not allow you in the country in the first place. so trans national gang members, ms-13 -- >> neil: and you were ticked off. the president was rightfully -- >> exactly. >> neil: you said not to the point of risking shutting down the government. >> well, what we're all agreeing on that we can do in my pint is, i think there's a lot of senator that's he can impose upon and red trump states, even democrats, to support removal of ms-13 gang members. my point is we don't need to shut down the government to get these ms-13 removed. we already have in one bill that i have. i also have another bill to work with ice agents and gang task forces that are cracking down
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and removing people now in the administration has been doing a good job of it. but i have always been opposed to government shut downs for the reasons secretary mattis stated today or yesterday. he came up to our conference and secretary mattis said it's very destructive to the military and destructive to the continuity of government. it's costly. it's bad policy. the schumer shut down or democrats learned that a shut down was bad. republicans have learned that in the past. >> neil: not all democrats and maybe not one republican right now on the fear that it is still a powerful incentive to get what you want. nancy pelosi seems to be intimating that. >> i'm talking about the pelosi shut down, too. >> neil: the president using that as a bargaining chip, you worry it sets another precedent that could be bad important both parties? >> the conversation is a civil one. the president was expressing a
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frustration that we all have that ms-13 gang members can still get into the country. i hope the senate will take up my bill quickly and get it on the president's desk and then also -- >> neil: i don't know. that looks dicey there. >> it's a simple bill -- >> neil: it's a great bill. i take nothing away from it. but in this environment, it's toxic right now. do you think we'll be looking at a shut down for one reason or the other? >> i don't. i think we have -- today you saw the two-year budget that we have worked out bicameral, bipartisan. i do think we'll have support for that. one of the things that i've said from the beginning since i've been in office, ending this defense sequestration. secretary mattis said that's one of the most destructive things to our military. we've heard that -- >> neil: what is more destructive, ignoring any types of caps or fiscal restraint. whatever your views on the military and they're sound and well-regarded. now with that gone, obviously
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the caps on defense spending, they go. an observer says, gone are the days that they pretended to have fiscal resolve. >> look what we've done in putting more money back into the hands of our families with our tax cuts and businesses so they can now invest and grow the economy. we're going to have new welfare reforms -- >> neil: we're also going to be looking at a trillion dollar deficit. i'm not blaming that on you or republicans but says something about getting a handle on spending. >> when you grow the economy and we're putting mechanisms in place and the commission to reform the budget and do more long-term budgeting, you can do things like defense has been spending more than they need to on certain things. when you have the start and stop short continuing resolutions, they don't get to do the long-term planning. the same thing on infrastructure. the domestic money will go to things like transportation and
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infrastructure, have longer term contracts there so we is save money in our businesses now that have lower tax rates can do long-term investment knowing that they have long-term budget in place as well as long-term tax relief, tax cuts that are leally business friendly. then you look at our regulatory changes that we made over the past year, which have been very pro business. >> neil: and that might turn things around. >> that will help turn around the economy, too. >> neil: we shall see. thanks, congresswoman. very good seeing you. >> thank you. >> neil: all right. by now you have heard of this vix index. it's a way of investing on fear. people are freaking out, you can bet on that. and if that's not good enough for you, there's a counter weight against that as fancy as that seems. there's two other vehicles you can do that. my only point with this, it tends to exacerbate market
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trends as if we can outlaw the rule of volatility in the markets. once again, we have proved this week you can't.
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>> neil: all right. first disney with the better than expected earnings and now fox entertainment out with the same sort of thing. better than expected and the stock up 1.5%. what does that mean? back in 60. it lets you know where your data lives,
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>> we have the inverse and leverage instruments, instruments like the vix and already a debate about the suitability of those products, the disclosures of those products given the events of last couple days and we'll be a participant in that. >> neil: do you worry that some have say we've gotten too clever for words? we've given the different options for stock. now it eclipsed the number of shares of stork that we have. >> i feel good about the market. i don't want to be pollyanish. the markets have functioned quite well the last couple days. >> neil: the markets have functioned well in the face of this. but it's all this crazy stuff that has happened where we have more mutual funds, exchange rate funds and the boutique investments that you can use and trade against volatility. you can bet on fear. if the fear isn't something that
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you really want to focus on, you can bet on the fear of the fear. in other words there's a number of mechanisms that track not only the vix, the sort of definition of how much anxiety is out there, you can counter that by investing in other products like pro shares, short vix, short term futures, etf. a vehicle like that. and the velocity shares vix short term traded. they're mouthfuls. some of the companies pushing them, they had to stop it. people swarmed into these investments as a counter to the fear index. i can get lost in the weeds here myself. as many of you know, i'm boring on my own. but i'm telling you, this is another way people seem to think in this market, in any market, you have sort of outlawed the basic principles you can lose money as well as make money. you can't do that. here we are.
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john layfield, my fear is that it exacerbates trends, compounds them what do you think? >> i agree completely. you're talking about the credit sweep, the xiv company you short the fear index. you're betting on a derivative of a derivative. that's what happened in the subprime crisis. this set off a cascading effect of al gor rhythm traitin tradin. the markets love this. you're having more trading. 60% is computers on the symptom market. once this reverse vix got blown up, lost 92% of its value in one day. set off the computer trading. this was a technical malfunction -- >> neil: and feeds on itself. for example, at one point it went from $99 to $4 in a day.
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i'm saying that that happens. but that was feeding on reverse fears. and my issue with raising -- i've raised this sort of thing a lot -- is that we live in an age of emotional algorithms and mathematical formulas that are triggered by hundreds of elements and things. to the individual investor, you get caught up in that storm, you have no idea what the hell is going on. >> you have no idea what is going on. the retail investors think the market is going through a recession or depression and start selling off and that's the wrong time to do that. it's a technical malfunction in the markets. there's nothing changed in the global economy from friday till today. the thing that changed, you have technical algorithms that kicked in and the market went crazy. >> i worry with this -- we've seen it with things like the flash crash and portfolio insurance in 87 and a neat way
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to package mortgage derivatives or crappy mortgages, if you will, back before the last meltdown. that will always come up with the clever devices that do more harm than good. >> yeah, collateralization helps the subprime market completely implode. we're seeing the same thing right now were the stock market. i agree with black rock. you need real tangible asset that you can trade. i understand these are professional investors. the problem is it sets off a cascading effect with technical algorithms in trading. now you are retailers selling when they shouldn't and affects the average americans. i agree with black rock. something needs to be done about this. >> you have nothing against the mark cuban approach, buy a fund or something like that, hold it, just don't be nutty about getting in and out or playing some of these other games if that's the route you want to go. >> absolutely not. buy a stock like disney and earnings are good, it will do
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well the next few years. volatility or not, buy good stocks and hold them and they will do well. >> thanks very much. joe biden is sort of rallying the troops on capitol hill. the same time that mike pence will do the same with republicans here. joe biden has been a busy bee lately which lends some to believe maybe he's looking a couple years in the future. after this.
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my name's dustin. hey, dustin. grab a seat. nice to meet you.
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have you ever had car trouble in a place like this? yes and it was like the worst experience of my life. seven lanes of traffic and i was in the second lane. when i get into my car, i wanna know that it's going to get me from point a to point b. well, then i have some good news. chevy is the only brand to receive j.d. power dependability awards for cars, trucks and suvs two years in a row. wait. i definitely feel like i'm in a dependable vehicle right now. i want a chevy now. i know! >> neil: all right. nancy pelosi on the floor of the capitol. she's been talking all day to force this issue of a budget that would marry with a commitment to daca and get this situation settled once and for all. paul ryan said he's open to a separate vote on daca and how to resolve this issue, but not necessarily tied to this. essentially she does want it tied to this. fox news senior judicial andrew
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napolitano. where do you think this is going? >> there's no filibuster on the house. she's allowed to give this five-plus hour talk because she's in leadership, this is a courtesy that the speaker provides to leadership and leadership provides to itself. it's of no legal moment and as soon as she finishes, the house will take up its business. this is just her way of demonstrating her fidelity to this cause. will it change anybody's mind? who knows. >> neil: all right. if chuck schumer and mitch mcconnell are on board the agreement without this guarantee, they got a promise from mitch mcconnell that they would separately address this issue but not attached to a budget measure, is she at odds with even cluck schumer? >> she is add odds with cluck schumer. there's 30, 40 conservative
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republicans that don't like the play. if they join the democrats, it's dead in the water in the house. now, the other side of this is, speaker ryan's office has said many times that daca will be addressed separately and soon. she insists that it be addressed as part of this because she knows the president wants and needs this budget. >> neil: while i have you, judge, the latest texts regarding peter strzok and lisa page show more contempt for then candidate trump. what do you make of this and what this latest batch is proving or -- in the end, they were taken off this mueller team, strzok was, of investigating trump. but obviously leaves a sour taste in a lot of republicans mouth, this was a guy until the texts became known was front and center. >> this is really about a reexamination, a lot of us have been calling for, of the
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exoneration of mrs. clinton. bob mueller took peter strzok off of the trump investigation and chris wray put him in the h.r. office of the rbi, which is probably a demotion. what this is really about is was there a predisposed political attitude in the fbi to exonerate mrs. clinton. here's the law. fbi agents can have political opinions and loves and hates like the rest of us. if they're political opinions animate their law enforcement judgment, if law enforcement decisions are made for petty personal or political reasons, that's called misconduct in office, which is a felony. if it's just their opinions and if it's just words, no matter how incendiary, it's not misconduct in office. >> neil: so what was the case
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before we had texts? you know, people might have had biases. you never know. >> in those day it was he said she said. keep your friends close. >> neil: all right. it's weird. judge, thanks very much. >> you're welcome, neil. >> neil: one of the smartest minds i know. the senate leadership is touting this bipartisan deal, but a lot of republicans concerned with the expense, a lot of democrats that are already concerned with the lack of attention to immigration. so there's no guarantee that those two guys are crowing about it. it's going to be a success after this. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. especially when inside another amazing machine. your an amazing machine.
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>> neil: nancy pelosi must have
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incredible lungs. she's been doing this for six hours now. a talk-a-thon in the house regardless of whether you're on the left or the right, what she is complaining about is a budget member that doesn't connect itself to daca or doing some with these kids of illegals that got here. many of them are well-passed being adults. she wants guaranteed protection for them. in the senate they called for a separate measure. they promise that will come up in the weeks and months ahead. i believe speaker ryan has said the same thing. i believe speaker ryan wants them joined at the hip here. congressman, thanks for taking the time. do you support her in this effort? >> i support as most republicans do bringing the dream act forward for a vote. actually, i heard her read the name oh jose from california, one of my constituents that wants to be a police officer. this country is the only country he's none and we want people
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like him to be a part of our country. >> neil: i'm sorry. i wasn't clear. would you say no to this budget accord if it did not include such a guarantee? >> yeah, we're waiting for the senate deal to be sent over. we haven't seen the numbers yet. three out of four people agree on what the compromise should be. mitch mcconnell, chuck schumer and nancy pelosi are in agreement the compromise is that we vote on the spending deal and have a vote on the dream act. paul ryan is isolated in that he doesn't agree on that. he should come around and get all four of them -- >> neil: i thought he was -- i thought he was going to promise a vote on this and you don't believe that? >> no. if he does promise a vote on the dream act, paul ryan, i think you'd see bipartisan support over 300 members in the house voting for it. >> neil: all right. do you think this is worth whatever your thoughts on this shutting down the government? >> well, i think it can -- we have to consider the deficit as well. this spending, additional $500
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billion, blowing the caps right after a $2 trillion tax cut, you have to step back and look at what that does to our economy as well. put that into focus, try to compromise where you can. one of the issues we want is the same deal the senate got. i can't understand why paul ryan can't make that assurance. i think you'll see widespread support. >> neil: his office has said they made the commitment. >> if that's the truth, you're breaking news to me. >> neil: no, no, sir, i don't know. i defer to both sides in the confusion here. let me ask you, congressman. you mentioned about the deficit here. you mentioned about how things are worse here. democrats are quick to pounce on the tax cuts. that's fine. you don't seem to mention the additional $10 trillion in added spending that will add to the debt the next ten years in the
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same plan. but i know both parties play this game here. are you concerned that the markets looked at this today as a sign that say when you will of the caps, congressman, they were a backup sort of spending backbone for both parties, to reign in the growth in government and now they're gone. does that worry you? >> it does worry me particularly on the defense side. that defense side will continue to outpace the domestic spending, investing in modern schools and our communities so our kids can compete and we don't need so many high-skilled visas. why do we need so many high-skilled visas? it's important to have an educated works force. >> neil: but now the caps are gone. >> that's right. for two years. >> neil: that's two years. i'm just saying these have been repeatedly blown over the years since they were implemented. so some interpreted this -- i'm going to introduce you to my nerdy world here. you're not. >> i'll try to come in. >> neil: really.
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you're too cool for that. one of the things that i have noticed is that it's like the bond market gave up on you guys. you're not going to show any discipline, so ney have just said the hell with you. what do you think of that? >> well, i think that we shouldn't give up on retraining our work force, investing in kids and at the return on the economy is americans that can compete in this economy with a work force that is also of immigrants. right now what i see is just more and more defense spending. very much does concern me, neil. we are at peace time right now. we don't have any active ongoing military presences -- >> neil: so you don't agree with defense secretary mattis that says we're in a perilous situation? >> as far as readiness, no. we need to assess the threats that are out there. when i say ongoing operations, i mean major ongoing operations have been wound down in afghanistan and iraq. we're increasing dramatically
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our defense budget. that does very much concern me. >> neil: so if nancy pelosi on in issue, however passionately she feels about daca and wanted to bring it to a brink, would you support her on that? >> i'm going to wait and see and hope that we can strike a deal. i think what she is asking for is not unreasonable. she wants the same deal that mitch mcconnell and chuck schumer reached. i don't see why paul ryan would want be isolated in that. >> neil: i don't know who is right on this. thanks for your time. >> thank you. >> neil: we did hear as he was speaking from paul ryan spokeswoman addressing this saying speaker ryan has repeatedly stating we intend to do a daca immigration reform bill, one that the president supports. i don't know if that is different from prior positions that mitch mcconnell has espoused or cluck schumer has
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espoused. he has said that nancy pelosi has been speaking six hours for nothing. there's lies the rub. stocks down, interest rates backing up. "the five" now. saving you time, so you can keep saving the world. >> kids: ♪ safelite repair, safelite replace ♪
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this is the story of green mountain coffee roasters dark magic told in the time it takes to brew your cup. first, we head to vermont. and go to our coffee shop. and meet dave. hey. why is dark magic so spell-bindingly good, he asks? let me show you. let's go. so we climb. hike. see a bear. woah. reach the top. dave says dark magic is a bold blend of coffee with rich flavors of uganda, sumatra, colombia and other parts of south america. like these mountains, each amazing on their own. but together? magical. all, for a smoother tasting cup of coffee. green mountain coffee roasters packed with goodness.
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♪ >> kimberly: i am can really go file with juan williams, jesse watters, dana perino and tom shillue. it's 5:00 in new york city and this is "the five" ." fox news has obtained more text messages from the anti-trump lovers at the fbi. agents who were investigating his campaigns possible ties to russia. on election day, lisa page writes "oh, my god. this is terrifying." peter strzok replies "oh, my god. i am so depressed." later, i have "all the presidents men." figure i need to brush up on waterg


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