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Are welcome back everybody had a guy ought to be Dell's -- gets -- -- on including Tea Party -- -- up.
And that it is saying that.
But -- my carrying water for President Obama.
By by interrupted her -- them.
Present Obama was behind all of these IRS investigations that are with the bottom licenses we don't know that.
And and Jennifer's or -- -- -- and -- strongly and fervently believes that.
Might it turn out to be the case.
But leaving aside the fact there is this issue of -- have proven guilty.
We are not gonna jump to conclusions without the investigation being concluded.
It's so good that that was why I interrupted -- and -- we don't know for sure the degree to which this extends or carries up -- the White House many are of that view.
And it might indeed be the case but it is not.
My job here to pass along people's opinions as facts.
So that is one of the things were looking at and whether it does resonate like that.
Because to Jennifer's point earlier she thinks it does go up to the White House and she thinks it does.
Get to be Watergate like in the -- a bad and if that is the case.
We do know from Watergate -- -- buffeted the markets and we do know that at the same time the economy wasn't all that great.
So it was like a 12 punch that really in the end a lot of damage but you wouldn't have seen it so far in the month of may we had an awful.
Finally -- trading yesterday but the fact of the matter is.
We have all the major market averages up appreciably so.
And again that was despite that 209 point sell off -- the very final day of the month we've got Brenda Buttner -- From Bulls and Bears and Johnny Hoenig and of course Tobin Smith up.
A British view first what do you think wins out in this case it did it's it's a scandal all the time.
You work for that matter the economy which is gonna decide.
The markets could well the markets do not mind -- -- does not mind if Washington gets -- out more and more and knots because last will get done and that is better for our economy.
And that's better for Wall Street so I think they're watching the scandals with one I also watching the economy at this point the economy's pretty soft.
But that fed keeps the Rollins -- -- analysts are right in there and so they're saying yes you know we've had the best five months start.
Since President Clinton was in office is -- in the middle of the Internet bubble so it's been quiet.
I did that tonight -- -- you know one of the arguments for those -- of the markets.
Again yesterday notwithstanding.
Doing well -- that.
Maybe this time he's the president's ability to spend maybe it's time -- -- big government agenda maybe it slows it down walls of the good when he.
Well the the market certainly you have to bonus point.
Liquidity driven -- a really nice word but it -- his -- it's free.
So if you can't get any return in bonds than they did people are buying stocks that pay a dividend that's complete capitalism in the nineties.
A so we're gonna have we have more -- is being raised by companies that means that look at.
If the if it would government goes into a stalemate we love that number one number two we're worried about the -- what we've seen here is inflation has been low enough.
That the Fed will continue to buy this these that the paper the departing the bonds etc.
and that puts more more money so -- itself -- thought process like now that's.
Bet the -- on the honestly I think that might be -- that this scandal that we haven't really heard about is what is the impact on the economy.
Of all this Federal Reserve intervention you know it was great the market was up the stock market -- up and made.
But bonds got crushed and Israel are really soaring.
And investors and long term treasuries lost 10% last month.
And I think it's any feels not unlike.
Financial stocks back in 2007 the summer of 2007 we -- -- the Scoble that.
That would that would become a couple years later I see tremendous -- in exactly weakness and exactly what Tobin was mentioning the interest rate sensitive stuff.
Getting killed relatives are authorized a -- and over a year random Internet and a but I wanted to -- suited to hundreds.
Plus points -- of yesterday.
Had to do with a lot what you're saying that -- Ben Bernanke does take that punch bowl away.
Or does better than expected economic news not great news but there's better news slows is bond buying program -- an interest rates.
Continue moving up that's a really great point at this point Wall Street likes bad news about the economy because it means.
That the Fed probably will continue that's kind of perverted and it's -- well yes.
Great yeah there now.
But you about the interest rates is -- you don't want growth to be -- -- well app you're not you know -- -- personally.
But Hogan and his shallow friends -- active athletic guys -- are really making money in the market -- because it means that Ben Bernanke will probably stop pumping money into the market but if interest rates and a lot we have seen the housing market finally start to find some foundation.
Maybe buyers rules will get scared and jump and perversely again well well above what the home builders -- saying yeah.
I think back -- Parts of 1987 you know we have that that's ever going along all of a sudden the bond market blew up numbers it was it was -- -- -- spiked up.
That the dollar got you know strong and all of a sudden you know we had Democrats -- seven it was very much the same type of situation where.
The its stock market was completely away from the economy.
We did a huge amount of money going to the bond market -- -- and interest rates it you can't interest rates look like this -- of the -- -- group like this.
And and that's and today go to some little -- but Glover straight up right you can you've got to go up because economy is doing better that's okay.
All right John -- -- I think that -- -- I think people put a tremendous amount of of faith in the Federal Reserve to that when they actually do wanna start and everything streets.
It's gonna be Dominick found at com measure and -- beneficial measure and it would you ever seen government intervention in any part of the economy.
After all housing schools and in a common -- way that's why I think that this spike you know the -- said he he had it under control I.
I think this bike is and has really got to put the whole economy and notice here.
-- has -- -- also perspective right John despite his perspective and other words if you are looking at.
Well I could've should've gotten at 3% -- now might give more present mortgage that is a big lead -- -- -- now I can remember what that.
That what is it like on real steel.
But it is your perspective you're used to rate so low for so long been branded everything it's that they had -- been hot.
Absolutely we have been used to interest rates at the absolute record.
And so people have not been worried about that when they've been potential homebuyers if that becomes a concern and a housing market is still just faltering Jana -- and.
-- that's found a -- area candidates inevitably cast for the it's not as little as we mourn the shot I doubt that that's a delegate you've got that -- -- that that wind when.
We start building homes against people can buy them everything above services because we that's why demand is we have -- not -- we actually of them that not enough bonds out there.
The Fed is actually bond -- so many bonds Reggie running to a probably there's not enough sponsor the -- -- and they stopped all of that how much I would greats that it got a 150 dollars or one and a half percent.
We've modeled this is a lot but that's that is not -- that's right something over how I expected and that's right disagree neon and again I go back to to 2007 in the summer of 2007 -- financial stocks got really -- -- people thought well they can drop another 51015%.
Would've ever thought that -- I think of a situation literally don't know we don't exist they're real slow up and bounds.
I'm just happy -- -- -- Fox News that we're appearance here today without a certain type that you decided to -- tonight epithet my advice thing was actually work.
Yeah I'll be the eighty's -- they want this is there a light up every.
Emails -- -- in Iraq to me like you get emails about interact is it will be -- All right thank you guys are very much -- for your indulgence with everything else that's been going on on.
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