WORK AT, YOU KNOW, I DON'T KNOW.
I DON'T KNOW WHAT TO TELL YOU.
>>> THE GLOBAL MARKET AND THE
PANIC THAT ENSUED OBVIOUSLY IS
AFFECTING SENTIMENT OUT THERE.
PEOPLE ARE GETTING A LITTLE BIT
ANXIOUS.
SOMETIMES THAT INTERPRETS AS
SLOW CHRISTMAS SALES, HOLIDAY
SALES.
SHOULD WE BE WORRIED ABOUT THE
SPILLOVER EFFECT?
THE BEST-SELLING AUTHOR OF "DEN
OF THIEVES" IS AMONG THOSE
SAYING REPUBLICANS SHOULD NOT
WORRY TOO MUCH BECAUSE IT'S NOT
GOING TO BOTHER THEM ON THE DOWN
SIDE, JUST AS IT REALLY WASN'T
GOING TO HELP THEM, THE RUNUP ON
THE UPSIDE.
IS HE RIGHT ABOUT THAT?
DAN MITCHELL, WHAT DO YOU MAKE
OF THAT ARGUMENT THAT WE
OVERSTATE, ESPECIALLY IN A
MIDTERM ELECTION, THE IMPACT OF
WHAT'S GOING ON NOW IN THE
MARKETS, UP OR DOWN?
>> WE OVERSTATE IT IF IT TURNS
OUT THAT IT'S JUST A SHORT-TERM
DIP AND TWO WEEKS FROM NOW, WE
FIND OUT THAT IT WAS A
NON-STORY.
BUT WE DON'T KNOW.
MAYBE THE STOCK MARKET WILL DROP
ANOTHER 10%.
MAYBE IT WILL AFFECT THE ECONOMY
IN THE CHRISTMAS SHOPPING
SEASON.
MAYBE IT WILL AFFECT THE
MIDTERMS BECAUSE PEOPLE WILL
HAVE AN ADVERSE WEALTH EFFECT,
THEY WILL LOOK AT THEIR BALANCE
SHEETS AND SAY OH, THE MARKET'S
DOWN, I'M NOT AS RICH AS I
THOUGHT I WAS.
BUT SINCE I CAN'T PREDICT THE
ECONOMY, I'M NOT GOING TO SAY.
ALL I CAN DO IS TALK ABOUT THE
POTENTIAL IMPLICATIONS, IS
TRUMP'S PROTECTIONISM
THREATENING US, IS THE FACT THAT
GOVERNMENT SPENDING IS
CONTINUING TO CLIMB TOO FAST, IS
THAT AFFECTING US, THOSE ARE
THINGS WE SHOULD WORRY ABOUT.
NEIL: GARY, HOW MUCH ARE YOU
WATCHING THE CLOSE TODAY?
>> I WATCH EVERY MINUTE OF THE
DAY, NEIL, AND ESPECIALLY NOW.
LOOK, YOU HAVE CONDITIONS, I
CALL THEM DON'T BLINK
CONDITIONS, BECAUSE THIS
MARKET'S MOVING 200, 300 POINTS
BUT AFTER A BIG DROP AND YOU GET
OVERSOLD AND ARE UP 400 AND
CHANGE, IF YOU FINISH DOWN BADLY
TODAY, YOU HAVE TO WORRY ABOUT
WHAT COULD POTENTIALLY HAPPEN.
I'M NOT PREDICTING ANYTHING, BUT
WHAT CAN POTENTIALLY HAPPEN,
ESPECIALLY WITH THE FACT THAT
EUROPE WAS UP TODAY AND FINISHED
DOWN FOR THE DAY.
SMALL AND MIDCAPS ARE STILL DOWN
TODAY.
EVEN I SEE WE ARE RALLYING A
LITTLE BIT SO THERE ARE SOME
ISSUES THAT MOST DEFINITELY HAVE
TO BE WATCHED.
NEIL: YOU KNOW, WHEN YOU SAY
THAT, [ INAUDIBLE ] TO YOU RIGHT
NOW?
>> CASH.
I'M IN CASH RIGHT NOW.
THAT'S ONLY BECAUSE --
NEIL: DESCRIBE CASH TO ME.
WHEN YOU SAY CASH, DO YOU JUST
STUFF IT UNDER YOUR MATTRESS?
WHAT ARE YOU DOING?
>> 2.5% MONEY MARKET AT THIS
POINT IN TIME.
LOOK, YOU ARE IN MARKET
CONDITIONS WHERE THE COMPLEXION
HAS CHANGED AND YOU KNOW, I
WRITE ABOUT THIS AND TALK ABOUT
THIS.
WE JUST DIDN'T TOP OUT FOUR DAYS
AGO.
TWO WEEKS AGO, YOU HAD FORD AND
GM AND INTERNATIONAL PAPER AND
WHIRLPOOL AND SO MANY NAMES
ALREADY AT NEW YEARLY LOWS.
YOU HAVE HAD MARKETS ACROSS THE
GLOBE AT NEW YEARLY LOWS.
WE'RE JUST PLAYING SOME CATCH-UP
HERE AND THAT'S THE BIG WORRY.
WHEN I SEE ALL THESE OTHER
THINGS GOING ON, I ALWAYS ASK
THE QUESTION WHAT'S THE MARKET
SEEING, BECAUSE THE MARKET IS A
PRETTY GOOD FORECASTER.
MY HOPE IS THIS IS GOING TO BE
MORE LIKE FEBRUARY, WHERE WE HAD
A BIG DOWNDRAFT AND THEN IT TOOK
A FEW MONTHS TO REPAIR IT, THEN
EVERYTHING WAS A-OKAY.
THIS ONE FEELS DIFFERENT,
THOUGH, BECAUSE TODAY'S
FINANCIALS COME OUT WITH
SUPPOSEDLY GOOD EARNINGS, THEY
ARE SELLING OFF JPMORGAN, PNC
BANK IS CRASHING AND FINANCIALS
ARE VERY IMPORTANT SECTOR TO MY
WORK.
SO AGAIN, I GOT VERY CLOSE
MICROSCOPE ON THIS ONE.
NEIL: YOU KNOW, THE PRESIDENT
SAID AND HE'S RIGHT THAT THE
CONDITIONS, THE FUNDAMENTALS OF
THE ECONOMY, ALL THAT IS FINE,
ALL THAT WELL AND GOOD.
RONALD REAGAN SAID MUCH THE SAME
AFTER THE '87 CRASH BUT BULL
MARKETS DON'T DIE OF
FUNDAMENTALS DETERIORATING.
THEY DIE OF ABERRANT EVENTS
NORMALLY.
ARE THERE ANY ABB
ARE THERE ANY ABERRANT EVENTS
OUT THERE HAPPENING?
>> PROTECTIONISM OBVIOUSLY IS A
THREAT TO THE ECONOMY AND TO THE
MARKET.
BUT LET'S ACTUALLY BACK UP AND
LOOK AT ANOTHER ISSUE WHICH IS
BUBBLES, EASY MONEY, LOTS OF
DEBT.
I THINK THAT'S THREATENING BOTH
CHINA AND THE UNITED STATES AND
THERE IS AN IMPORTANT LESSON
HERE.
WHENEVER THE ECONOMY IS WEAK,
PEOPLE SAY THE FED NEEDS TO
ARTIFICIALLY LOWER INTEREST
RATES, THE FED NEEDS TO PUMP
MONEY INTO THE ECONOMY.
WHEN YOU'RE IN THAT STAGE, IT
FEELS GOOD.
IT'S LIKE OKAY, LET'S INJECT
SOME HEROIN, WE WILL FEEL GOOD
FOR AWHILE.
SOONER OR LATER, THAT STUFF
CATCHES UP WITH YOU.
I DON'T LIKE EASY MONEY, NOT
BECAUSE I DON'T LIKE THE NICE
FEELING WHEN IT FIRST HAPPENS.
I DON'T LIKE EASY MONEY BECAUSE
SOONER OR LATER, IF YOU WIND UP
WITH A VOLATILE, FRAGILE
FINANCIAL MARKET, BECAUSE PEOPLE
DON'T KNOW WHAT THE FUNDAMENTAL
AND WHAT'S SIMPLY A PROPPED-UP
ASSET PRICE BECAUSE OF TOO MUCH
LIQUIDITY SLOSHING AROUND.
WE SHOULD LEARN A LESSON AND BY
THE WAY, I DON'T THINK TRUMP IS
LEARNING THAT LESSON BECAUSE
HE'S CRITICIZING THE FED.
HE WANTS THEM TO KEEP
ARTIFICIALLY LOW INTEREST RATES
I GUESS FOREVER.
NEIL: GARY?
>> DAN IS BRILLIANT, HE'S 1,000%
RIGHT.
MY BIGGEST WORRY THIS WEEK IS
WHAT THE PRESIDENT DID WITH THE
CENTRAL BANK HEAD IN BASICALLY
COMPETING WITH HIM ON THOUGHT.
I THINK IT IS A HUGE MISTAKE,
ARGUABLY THE NUMBER ONE MONEY
MAN IN THE WORLD TO SAY THAT
HE'S CRAZY I THINK IS A HUGE
MISTAKE.
THE FACT WE ARE AT 2% INTEREST
RATES AND A PRESIDENT IS
WORRIED, THAT'S THE RIDICULOUS
EASY MONEY.
YOU STILL HAVE EUROPE AND JAPAN
NEGATIVE RATES AND STILL
PRINTING.
I'M IN HOPES HE BACKS AWAY AND
MY BIG WORRY IS IN THE NEXT SIX
MONTHS, WHAT IS THE MARKET
TELLING US RIGHT HERE AND HOPES
IT FINDS A LOW, GETS GOING
AGAIN.
BUT THERE ARE SO MANY INDUSTRIES
AT NEW YEARLY LOWS RIGHT NOW
THAT I THINK PROBABLY WE ARE