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tv   Sunday Morning Futures With Maria Bartiromo  FOX News  August 17, 2014 7:00am-8:01am PDT

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sophomore album. you're like the -- some incredible selling artist now. >> apparently. >> can you play another song for us? >> yeah, let's do it. >> go to fox& good morning. are we in the throes of mission creep in iraq? hi, i'm maria bartiromo. this is "sunday morning futures." first air drops and then air strikes and then so-called assessors. now with a mountain mission over, we target a dam in mosul. is all this drip, drip, dripping putting us slowly but surely back inside of iraq for the long haul? we'll talk to a member of the house armed services committee about that. then, russia sending aid into ukraine as ukrainian troops fight to take back cities from the separatists. at the same time, putin
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reportedly supplying those rebels with more weaponry. so what are his true intentions in this ongoing turf war? and rick perry indicted. did he really abuse power or is this political game play, texas style? our panel on that, and yet another lois lerner e-mail plot twist. that and a lot more as we look ahead on "sunday morning futures." and good morning, everyone. a series of u.s. air strikes and humanitarian air lifts this past week breaking isis' siege of the religious minorities. it was holding prisoner on a mountain in northern iraq. but president obama says our latest mission in iraq is not over just yet. brand-new air strikes this weekend near mosul dam appear to be backing up the president's claim. the dam is near erbil. trent franks is a member of the house armed services committee and joins us now.
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congressman franks, good to have you on the program. thank you so much for joining us. >> thank you, maria. >> what's your sense of this? i know you sent a videotaped message to the president. it feels like this is a drip, drip. is there any reason to believe that the u.s. is not going to be fully engaged in iraq for the long haul at this point? >> well, maria, i'm afraid there is going to be the drip, drip that you mentioned. there is a moment in the life of nearly every problem, when it is big enough to be seen by reasonable people and still small enough to be addressed effectively without too much trouble. and unfortunately, this president has a bewildering way of letting that window pass. and certainly, that's what's happened here. and because of the tragedy that we tried, as you know, in the video to warn him of, significant time before it got as bad as it is, now we're in a humanitarian crisis there that is very significant, and unfortunately, the narrative that the siege has been broken
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is really a false one, because the largest percentage of those that are christians or yazidis that are being beheaded and persecuted in some horrifying way are not on the mountain. they're everywhere in the area. and it's bewhich wouldering to me that the ancient city of ninevah can survive the judgment of god and 8,000 years of disastrous difficulty and yet can't survive six years of barack obama. >> yeah. >> and i'm just really concerned about the whole situation, to say the least. >> and i want to ask you really what needs to be done now, to see some progress. we've got a lot to talk about you, congressman franks. stay with us. we first want to take a look at this past week, as we witnessed the first u.s. air strike on u.s.-made equipment being used by isis in iraq. how could this captured hardware complicate our current involvement now? fox news correspondent, leland
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vittert joins us live. good morning, leland. >> good morning. complications for the u.s. military and the kurdish. when the u.s. left soldiers there in iraq back in 2011, they left billions of dollars in hardware, as those soldiers left, with the iraqi army in that new country to look after. and as we have seen over the past few months, despite all the fancy gear and american training, the iraqi military proved its fighting prowess as wanting at best. losing battle after battle of isis terrorists and leaving behind all that military hardware from the americans, which has then been picked up by the isis terrorists. now we are learning that many of the air strikes carried out by the united states and iraq is against u.s. military hardware that had been captured by isis. this includes things like mrap vehicles that cost u.s. taxpayers half a million dollars a piece and now we are paying to blow them up. isis also captured 155 millimeter how witsers, many
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equipped with gps aiming systems, thousands of machine guns plussum sees that once belonged to the united states and now isis. now putting this in perspective, as we know, isis overran many of the kurdish positions with lightning speed. and that's because the kurds' weapons are simply ineffective against the u.s.-made weaponry. and remember, isis is fighting a two-front war as they try to build out the islamic state. on their west is the iraqis and kurds. but on the east is syria, where isis started. recent reports now show that isis fighters are taking all of that fancy u.s. weaponry, captured in iraq, back to syria, to help in their fight against president assad. maria? >> this is an amazing element to this story, leland. thank you very much. more now with congressman franks. and congressman, what do you say about that, the fact that all of this high-tech equipment that is the u.s.' equipment has been left in iraq and now isis has gotten their hands on it. >> well, you know, maria, when we withdrew from iraq, there was
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no status of forces agreement at all. and consequently, made this very situation almost inevitable. barack obama said that we leave behind a sovereign, stable, self-reliant iraq. but what he really left behind was an invitation to terrorists the world over to come in and have at it. and even gain the kinds of weaponry they have gained. and now isis is no longer a terrorist group that incidentally has ideology that makes al qaeda look like a bunch of cub scouts. they're becoming an army. and it's very disconcerting. when you let evil desecrate the innocent, as he has done here, all too soon that evil knocks on your own door. and i'm afraid there are implications here for america that are something that we need to consider carefully. >> i'm glad you mentioned the status of forces agreement. many guests who have joined me before have discussed this, because at that time, we had an opportunity to ensure that our military's exit from iraq was
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protected in terms of the future. explain to our audience the status of forces agreement and what went wrong there. >> well, in almost every conflict like this, we have -- in the past had a status of forces agreement when we left a particular country. and that meant that we had a stabilizing force behind. it meant we had cooperation with the existing government. and instead of just leaving a vacuum of confusion in this case. and what would have happened, we would have had the forces on the ground, we would have seen this coming much sooner. it is astonishing to me how every difficult crisis in the world seems to catch barack obama by complete surprise. he usually hears it on fox, i guess. but the reality is that just the smallest amount of resistance when isis first entered iraq would have prevented all of this horrifying tragedy. and now, ironically, we have the kurds and the french to thank as
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much as anyone in the world for somehow being there to -- as the best they could be for these innocent people that are -- have been so desecrated and tortured in such horrifying ways. >> what can the u.s. do at this point, given the mistakes that have been made already, and also, do you see isis as a threat -- direct threat to america? >> well, that's the right question, and i think the -- to answer the first question first, the first thing we have to do is to engage with the iraqi central government as much as we can and also the kurdish government to make sure that they're capable of defending themselves in every way. and then we have to do whatever it takes to neutralize isis in iraq. because it will grow into a very dangerous situation. the ideology of this thing is something that we overlook. but it invites terrorists all over the world to come and join the isis movement. and that's exactly what's happened. and if we don't interdict that, then, yes, it has a direct
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threat potential to the united states of america. you know, when two airplanes hit two buildings, we kind of woke up. but it seems like this administration has gone back to sleep. >> all right, congressman. we'll be watching the developments. thanks very much for joining us. >> thank you. >> we'll talk with you soon, congressman trent franks joining us. not much optimism coming out of peace talks in cairo as the deadline for a temporary cease-fire between israel and hamas looms over gaza. we'll talk to a governor who just is back from a solidarity mission to israel. he'll tell us what he learned. that's next. follow me on twitte twitter @mariabartiromo @sunday futures. stay with us as we look ahead on "sunday morning futures."
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the cease-fire between israel and hamas that started on wednesday is set to expire tomorrow. the temporary truce was meant to give israelis, palestinians and their egyptian immediamediatorso work out a more durable peace talk. indirect negotiations are resuming in cairo today. but as the deadline looms, a palestinian negotiator says key sticking points remain. so what are the realistic odds of reaching a more permanent cease-fire? joining me on the phone right now is a man who just got an up-close look at the situation and a face-to-face meeting with the israeli prime minister and he is new york governor, andrew cuomo. good to have you on the program. thank you for joining us. >> morning, maria. thanks very much. thanks for having me on. >> so you're just back from israel. what did you learn, what did you see, governor? >> well, there's no doubt that this is an extraordinary difficult time for the entire region.
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and israel is in a difficult position militarily and a difficult position politically. it's highly complex. always has been. but it seems it's even more difficult now. and what people forget is, israel is vulnerable. and israel is under attack, and israel has real threat that it has to deal with. so we wanted to make sure that side of the equation was also noted. the new -- relatively new situation in israel, where we now have an extensive network of tunnels that were dug from gaza to israel. highly sophisticated tunnels that were reinforced, wiring in them. so now this is now a new front that israel has to deal with. people talk about the military
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sophistication of israel and the iron dome, et cetera. they have a whole new problem now, which are these underground tunnels. and they come from gaza. >> and these tunnels were a lot bigger more sophisticated than you expected, right? we're looking at video of you walking through the tunnels. hamas built these tunnels as easy access into israel. what can you tell us about the tunnels? >> when i first heard about the tunnels, when you read about them, maria, they sound like -- in understanding gaza, you think they're dug tunnels that people crawl through. that's not what they are at all. they're highly sophisticated. these were well-engineered. they were very expensive. hundreds of millions of pounds of material have gone into them. and they have networks that comes from gaza into israel. they weren't really aware of it. so now they have to go through a situation to discover these tunnels, find out -- design a
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defense system against the tunnels. so it's difficult. and hamas is a real opponent, and their tactics are highly problematic. 3,000 missiles shot at israel. that's a real situation. and then the way hamas uses the population makes it problematic not only from a military point of view but a political beautiful. so -- and you put that in the scope of the region that you were talking about earlier with this whole rise of this extremism and isis and muslim brotherhood and the united states needs israel even more than ever as a strategic ally, because the region has real issues. >> yeah, really extraordinary. governor, it seems very presidential of you to make this trip to israel while the president, barack obama, was in martha's vineyard playing golf. is this foreshadowing your plans for 2016? >> i thought it was
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gubernatorial. of me, maria. more than presidential of me. i've been to israel many times before. i was in the clinton administration, and i worked with israel. you know, being a new yorker, we have a special connection with israel. being a new yorker went through 9/11, we have a special sensitivity to terrorist attacks. and the real pain and suffering that's caused. so that was the tone that we brought. a bipartisan delegation excited about. we brought the assembly leader, sheldon silver. we brought the senate leader, a republican, and senator jeff kline. so we brought the business community. i brought my brothers in law, kenneth cole and howard mayer and neil cole came. so it was really a united new york front politically, cultu l culturally, saying to israel, we
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understand your situation and stand with you. >> and stand with them during this very important time of crisis. let me ask you, governor, have you spoken to secretary clinton, and has she indicated to you she may not run for president, which, of course, would open the path up for you? >> i have not had any conversation like that with secretary clinton. i chatted with her, but not about that. >> how are you feeling about the upcoming gubernatorial election in november? >> you know, take nothing for granted. i'm working very hard. but i feel good about the job we have done here in the state of new york. and i'm eager to go through once again with the accomplishment we have had in this state. turned it around dramatically from a financial point of view, governmental point of view. so i feel good about that. >> governor, even as you have and we have seen your ads, the start-up plan in terms of trying to lure business to new york, we have seen the attacks against you from the skeptics. what do you want voters to know, governor, about the moreland
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commission and your handling of it? >> on the moreland commission, i've come up with an ethics reform plan to get legislation passed. they did just that. with top law enforcement people in the state of new york. they came up with a plan. we had a robust reform agenda. we didn't get it all passed. but we got a good percentage of it passed. more to do, you know, cleaning up government is not something that is a process more than a finite destination. and if there are any questions about the submission or how it operated, fine. you know, i -- we're working with prosecutors on the referral of the cases. and that's part of the process. but did we get everything accomplished we wanted, no. did we make significant headway, yes. and they did a very good job. >> governor, good to have you on
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the program. thanks very much for your time today. >> see you soon. despite the volatility overseas, wall street keeps on keeping on. is it the good place for your money? we'll top one of the top investment advisers next as we look ahead on "sunday morning futures." so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. can this decadent, fruit topped pastry... ...with indulgent streusel crumble, be from... fiber one. new fiber one streusel.
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♪ your ticket to a better night's sleep ♪ welcome back. wall street remains unfazed by the turmoil in the middle east and elsewhere. stocks stay in the plus column. following long-term patterns of record growth, both the dow and s&p 500 ending in the plus
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column. chief economic adviser for alley al yanz and pimco is joining us. we've got putin driving ukraine. isis on the run. and harassing. and beheading people. and yet the markets are focused on something else. >> yes. almost perverse. and we've got even a longer list. we've got weak europe, weak japan, weak china. and i think there are three reasons, maria, why the markets are not paying attention. in fact, if anything, the markets are treating bad news as good news to the level of complainscy. while the news is bad, it's not bad enough. it's not bad enough to take us to a tipping point, economically or financially. the second reason, loss of liquidity. and most recently, companies are putting their record cash to work through merger and
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acquisitions. so the market is awash with liquidity. and thirdly and most importantly, faith in the federal reserve. this notion that the federal reserve is the market's best friend. and therefore, if bad news means that the fed has to remain engaged in providing liquidity, the market treats that as good news. >> what are the implications then? i mean, for the fundamentals of the global economy. what are the implications, for example, of what's happening in russia and the impact on europe? europe is the u.s.' largest trading partner. i mean, as we focus on the federal reserve and the fed keeping interest rates so low, are we missing something but not focusing on the impact to the world economy? >> yes, we are. we are missing the widening gap between valuations that are up here and fundamentals that are down here. the problem with everything you cited in your program so far is that they fundamentally undermine global growth. and therefore, they undermine corporate profitability and corporate earnings and down the
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line, that will impact share prices. ukraine is particularly worrisome, because we are now involved in a process of sanctio sanctions that are creeping towards disrupting the supply of energy. so if there isn't a deescalation, then we risk pushing russia, ukraine and western europe into recession and that would result in a global recession. that's why it's very important to deescalate tensions there. >> but that's not happening, right? i mean, in terms of russia as an investment, we're going to talk with jim grant in a little while. a while back, he said he would be buying russia, because he thinks the valuations are so attractive. >> yeah. i wouldn't be. i think that people underestimate how difficult it is to walk back from what's going on. and like you said, it's drip, drip, drip. people may not notice, but cumulatively, you're getting closer to the point where this could be significantly disruptive for the economy, global economy, and therefore,
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disruptive for financial markets. >> would you change your investment recommendation today as a result of what we're seeing in international waters? >> yeah, i would book some profits, markets have done extremely well. whether it's the equity market or the bond market. i would keep some cash. i think the optionality that cash provides you is really important. and those are the two things i would do. i would simply take some risk off, have a little bit of cash, have a little bit of dry powder, because i think we are looking at a more volatile phase down the road. >> let me ask you about a near-term issue. it's a big week for central bankers. you've got janet yellen going to wyoming. the jackson hole event. she'll be the keynote on thursday. on friday, mary owe draghi speaks. what are you expecting out of this meeting thursday? is this going to be a catalyst for markets? >> i don't think so. i think what they're going to tell us is what markets know, which is they intend to be accommodative, that they worry about the real economy and labor
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market. what we would like them to address is the trade off between stimulating the economy today and taking the risk of financial disruptions down the road. that tradeoff is getting more and more -- uncomfortable. and that is the issue really that everybody would like the central banks to discuss. but i doubt they'll do that. i think they're just going to focus on why it's important to continue to support the economy today. >> what's the biggest global risk to the economy in the u.s., mohamed, real quick? >> i think it's that the global economy weakens so much that we find we cannot be a good house in a weak neighborhood. >> which is, of course, what we have been. and the safety of the u.s. has continued to lure assets here. mohamed, always wonderful to have you on the program. thank you so much for joining us today. >> thank you. >> we'll see you soon. mohamed el erian joining us. what's next for the war-torn nation as we look ahead on "sunday morning futures"? we'll be right back. h. heartbur.
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smoke bombs and tear gas lit up the early morning hours on streets that have rebem sem belled a war zone. violence has escalated in recent days after a white police officer shot and killed michael brown, an 18-year-old black teenager more than a week ago. and tragic news for the als community. cory griffin has died. he was a close friend of pete frates. frates is the inspiration behind the social media ice bucket campaign helping raise awareness and money for lou gehrig's disease. griffin died after diving into a nantucket harbor. officers tried to revive him but he was later pronounced dead at the hospital. i'm leland vittert. now back to "sunday morning futures" with maria bartiromo. thank you so much, leland. ukraine reporting one of its fighter jets has been shot down by pro-russian separatists. the plane was apparently
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supporting ukrainian ground troops, forcing their way into a rebel-controlled city. meanwhile, a russian aid convoy being checked with kievs suspicious the vehicles might be cover for military intervention as the crisis escalates between east and west. are we seeing the beginnings of of a new cold war? joining me now is fox news contributor, marvin california be. during his time at nbc, chief diplomatic correspondent and as a moderator of "meet the press." good to have you on the program. what's your sense of what's happening today in russia and post that convoy being checked, and, of course, ukraine forces destroying some of that russian convoy? >> well, that's i think the heart of the problem right now. and the secret, the story is always in the kremlin. and i think in this case, in putin's mind. what is it ultimately that he wants? if he is seeking total control over ukraine, he could have had it months and months ago. he seems to want political
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authority over ukraine, without having the ultimate responsibility for running it all. but at this particular point, there is an odd story unfolding. the ukrainian president says that ukraine went against russian forces on ukrainian territory, and that the ukraine actually destroyed that russian military convoy. the russians say this is all a fantasy. that it didn't happen. that it's all made up. i doubt that.think that somethi happened, and we're not paying enough attention to it. and there's another aspect of this, as well, maria. and that is that putin himself appears to be on somewhat shaky political grounds. he was in crimea this week, was to do a major speech and moscow television did not carry it. why? >> hmmm. why didn't they carry it?
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you think that people are beginning -- his approval rating is still soaring though, right, marvin? >> his approval rating is still at 84%. that has to do with the takeover of crimea and the whipping up of a great deal of national disfervor throughout russia. nevertheless, for those of us who are a little bit kreml kremlinologists here, you have to ask the question, here is a man who always wants to be on television, always wants to be in the middle of everything. and yet he had the opportunity in crimea, the emotional location of crimea, to be on television once again, to state his case, and for some reason, still mysterious, he didn't get that opportunity. and i'm wondering, what, in fact, is going on in the kremlin right now? >> what do you think the u.s.' next move is? it's pretty clear that putin is not taking the u.s. and the sanctions seriously. is there a role for the u.s.? what should we be doing? >> no, you know, i don't agree
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with you on that, maria. i think that they are being taken seriously. and that's one of the reasons that putin decided to counter sanction the american sanctions, by i hope posing food stuff sanctions. that is a weird strategy on his part. and for the u.s. right now, the u.s. appears to be continuing to press him. whether the idea behind the president's policy is literally to unseat beauty african putin from power or change his policy, it's not clear. it may be that one is, in fact, going to end up as the other -- the unseating of putin of the. >> look ahead for us, and try to navigate how this plays out. clearly, we're looking at 1 million people leaving or dropping out of the population in russia every year. etroleum products of ukraine. next week, the president of ukraine may call early
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parliamentary election, following last month's collapse of the governing coalition. that's happening friday august 22. and how would you expect this to play out? >> well, i think that obviously, it plays out at the political level. but the economic level is going to be extremely important in this. what we are hearing from people who know russia very well is that the russian people right now at one level, which is the middle level and down, which is most of the people. they are now beginning to feel a pinch. things are beginning to cost more. there were fewer things on the shelf. they have to find some person to blame, and in russia, there's only one person who gets the credit, and ultimately one person who gets the blame. and that's putin. and that goes back to my earlier point, that you are now at a point where you are seeing some
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shakiness in putin's political position. and whether he is capable of retaining his ground, we will see over the next couple of months. >> yeah. all right. we'll leave it there. marvin, thanks very much for your insights. appreciate your time today. let's look at what's coming up on "media buzz." hi, howie. >> hi, maria, we've got a full plate from the coverage of robin williams' suicide to chuck todd taking over "meet the press" and hillary's hug it out strategy. we're going to spend much of the program on ferguson, missouri, in the wake of the new renewed violence this morning. the arrest of the two reporters, the heavy focus on what some people saw as police overmilitarization and overreaction. and then on friday, the dramatic shift in the narrative when that video of michael brown, the teenager who was killed in an apparently robbing convenience store and how that has changed the storyline, even though police say didn't have anything to do with his killing, the officer who shot brown didn't
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know he was a suspect in that shoplifting. >> such an unbelievable story. howie, we'll see new 20 minutes. a great panel ahead. the political fallout across the spectrum to be epic. texas governor, rick perry, indicted on felony charges of abuse of power. our panel will kick off with that as we look ahead on "sunday morning futures." stay with us. just you...with the great facial hair. when gray creeps in do you lose it all? not you. new touch of gray mustache and beard
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rick perry becoming the first texas governor indicted in nearly 100 years for allegedly abusing his power against a public prosecutor who refused to resign after a drunken driving arrest. there is her photo when she was arrested. perry calling the case, quote, a farce, but could it impact the possible white house run in 2016? want to bring in our panel now, keith mccullough, ceo of hedge high risk. and fox news contributor.
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and james grant, a financial author and analyst, the founder and editor of "grant's interest rate observer." i'm honored to have the three of you here at the table. thank you for joining us. rick perry indicted. do you believe it? what do you think about this, judy? >> i think when david axelrod, obama's campaign director, tweets out a message that says "this looks awfully sketchy" is the word he used, i think that's telling you something. i think to most people who read what's going on in texas, it looks like texas politics. and also, i don't like special prosecutors. i think they have a tendency to get out of hand. if you look at what he's accused of, which is basically trying to reign in an office and person he doesn't look, it's not clear he abused his authority. and as for the grand jury indictment, well, you know, you can indict a ham sandwich, as they said. rick perry has now become ham on rye. >> she was arrested for drunk driving. he said, resign or i'm going to cut funding. she didn't resign.
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he cut funding. and then they indict him. so -- >> ham sandwich. isn't it perfect? >> let's move on to the irs for a moment. now we get another judge basically saying, look, we want to know what happened with these crashed computers and how is it possible all of these e-mails are missing. is this one step closer to actually getting our hands on this information? what do you think, keith? >> at the end of the day, it's like transparency, accountability, what? you don't really have it. you really don't have it. and any time you want to get it, you get this next little rabbit hole you have to go down. and at the end of the day, i think people are getting tired of it, getting tired about reading about rick perry this morning, just getting generally tired of the whole lack of transparency and accountability in america. >> people want accountability and transparency. no doubt about it. and that's what we need to see in russia, as well, jim grant. i spoke to you, what, a couple months ago when you said, i would be buying russia. >> i am. i did. i own it.
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investing is about, you know, handy capping probabilities. seeing value and judging that value in the context of available options and as a man said, successful investing is having everyone agree with you later. so in russia, russia sells in aggregate on a so-called exchange traded fund for about five times earnings, which in wall street talk is cheap. the dominant bank in russia, spur bank, trades for 3 1/2 times earnings, yields almost 6%, discount to net asset value of the back about 20 odd percent. compare this to the dominant banks in zimbabwe and pakistan and argentina and russia is the pariah. and compare that to valuations in the u.s., trading 17 times earnings or something for the s&p 500. >> so it might just be that
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mohamed el erian, whom you interviewed earlier, is correct, and one ought to pay no heed to these values, because the world is such a dodgy place. but the world is -- it's a world of sin and sorrow, always. there is always risk. but here is an outlying value proposition. my view is this too will pass. >> does it concern you that the u.s. market has not been impacted very much by what's happening in iraq, by what's happening in russia? gaza? does that surprise you? >> well, i think that we are in unique territory in america in that this is the first time we have had low interest rates and both a rhetorical and financial campaign by the central authorities to lift up or levitate financial asset values. we have had low interest rates before, of course. but never before have we had a central bank that is actually pushing for higher stock prices, along with this program of low interest rates. so this is untrodden ground. >> yeah, and you call that
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central planning. i want to get your take on the fed and what we're going to hear next week, because we've got the big fed meeting this week. janet yellen and other big wigs headed to jackson hole, wyoming. any hibbert as to when interest rates will move? we'll look at that as we continue on "sunday morning futures." back in a moment.
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did you know a ten-second test could help your business avoid hours of delay caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. go to checkyourspeed if we can't offer faster speeds - or save you money - we'll give you $150. comcast business. built for business. and we're back with our panel. isis getting more powerful. should the u.s. be worried? >> well, of course the u.s. should be worried. and it's nice to see that the president is, even from martha's vineyard. >> back to washington. >> he's coming back to
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washington. we somehow got 40,000 people off the mountain. he also got rid of nuri al maliki, the prime minister, who is really at the heart of the iraqi problem and the dysfunction. but now he has to explain to the american people why isis is really a threat to us and to the western world. and i think americans get this and he won't have to push hard and that there already are boots on the ground. 125,000 peshmergas. the iraqi army under new leadership can be turned around, but they need intelligence and special forces. we've got 900 people there. 900 already. obama has to explain why they're there and why it's important to make this fight. >> for the first time this week, the markets seem to take notice of was going on internationally. but you're still not a buyer here? >> the good news is bad and the bad news is getting rightly confusing at this point. at the end of the day, though, i
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think what people -- you know, and this is going to hit obama squarely in the forehead more than any other geopolitical issue at the back half of the year. that's the economy may be flowing to basically half of what wall street consensus thinks. >> we have a 4% gdp. >> if you go backwards and tell yourself that you'll be fine and have a ham sandwich, too. in the middle here, an early cycle slowdown at the very least in housing, u.s. consumer, we've been seeing this throughout the year. as we go into the fed meeting, jackson hole and the september meeting, what i think the fed is going to do, they do. they react dovishly in the downward face of the economy. interest rates lower does not simulate this economy, just news flash on that. and at the end of the day, obama is going to have to deal with a much slower economy than what he thinks he has in the back half of the year. >> yet the market continues at all-time highs. what gives? >> muscle memory. >> okay. >> gets back, also, to the
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expectation of more and more dollars flooding out of the central banks pumps. you know, the market is arithmetically overvalued with respect to revenue, with respect to earnings, with respect to stock market valuations, percentage of gdp. all this is true. that does not mean it can go higher. i think people are banking on the fact that the federal reserve is your silent or not so silent partner. >> are you filling into any strength, then? >> i am doing nothing except talking to you at the moment. >> this week we put up a note saying you should go into 50% cash. why would you go into an economic slowdown just praying and hoping? by the way, hope is not a risk management process, that obama is going to basically tell you the economy is good when it's half of what he thinks it is. i don't think that's going to fly. the cycle is the catalyst.
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>> i don't know. look at everywhere else. the united states still looks pretty good. other than that, i think there's a lot of foreign money flowing into our markets, our real estate. we see it. >> this goes back to the same argument, though, people fundamentally believe that as long as it's not a crisis, then the u.s. looks better than russia. i mean, at some point at the all-time bubble high in terms of valuations, that is the matter when growth surprises on the downside. i think that's the catalyst after 62 months of an economic expansion we start to slow and you can't just buy them and make money every time. >> it's a great analysis. can this decadent, fruit topped pastry... ...with indulgent streusel crumble, be from... fiber one. new fiber one streusel.
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welcome back. the one thing to watch, what's your one thing? >> jackson hole.
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the unelected come upon us. i'm looking for divine intervention. at some point, she's going to have to prove she can rebend economic activity. you're agreeing on that. i can't wait to hear what she has to say next. >> was your one thing? >> brussels and berlin to see whether or not our european allies can des escalate the crisis in ukraine, which can really flare up again and drag us all down and russia with it. >> jim, bhooung? >> i'm looking for reaction from the most extraordinary piece in the "wall street journal" last week by james slessinger concerning the electromagnetic pulse to this country. imagine a nuclear bomb going off and destroying the electrical grid. so the idea is that you can fix this before it happens for the cost of $2 billion. i read this thing, i was just -- i've heard about it. i was thunder struck at the facts as presented and am dying to know whether the world cares. >> wow, that is a big story.
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and we will focus on that. i'm glad you brought it up for our viewers. thanks, everybody. really appreciate it. i was going to say jackson hole, as well. instead i'm going to say hue let pack yau yard and home depot earnings. have a great rest of your week. on the buzz meter this sunday, new violence in ferguson early this morning in defiance of a curfew as the national media chronicles the chaos after the fatal police shooting of an unarmed teenager. the tear gassing of a television crew and the arrest of two reporters. >> let's go. let's go. you can move. let's go. move. >> sir -- >> let's move. let's move. >> sir -- >> this way or this way. >> but is the press helping to explain another racially charged controversy? and how has the release of that shoplifting video changed the media narrative? in a


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