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Not -- Brett Brett welcome everybody I'm Neil Cavuto -- yesterday's 200 plus point sell -- wasn't enough.
Take a look at what happened today Sox rocked by talk just halt that -- -- Ben Bernanke.
May ease up on that easy money and maybe a lot sooner than than you thought probably in the false.
Growing fears -- then himself lose already all but out this -- this term might not even finish that term.
Also could be out this fall and it's not just stocks getting slammed on all of -- gold prices diving not the lowest level we've seen.
In more than two years bonds are also -- and you know the -- Blair when they go down there interest rates go up.
And the fear that those rates are gonna go up a lot higher it tends to rattle investors still.
Those rates we should stress are still at or near record low levels the fact of the matter is.
That they aren't what they work and people don't like that.
So we're on top of all of that said where we go from here.
With Peter -- of Knight trading on the next stock move Fox Business network's Charlie Gasparino and Melissa Francis -- Ben Bernanke's next move.
-- former PaineWebber boss Don Marron.
On a -- and should move you know as we begin with -- -- -- -- Much ado here are about.
Just a little something or are they on to something.
The markets are clearly on to something there there's been a significant shift.
In terms of how the Fed intends to manage its policy quantitative easing or should I say stimulus.
And as a direct result the risk off trade.
Is becoming significantly less attractive meaning.
There's less of a bid for equities as the reflation trade.
Looks to have.
Basically it looks like it's gonna be coming to an end in the fourth quarter so it's it's the last certain that.
Equity prices will continue to appreciate in value.
As a result money is is a rotating out of -- high fires.
Rotating towards the more conservative more dividend oriented picks and frankly it's a period dislocation in dysfunction.
You know because -- -- who study this there is this it brilliantly every day always remind folks like me that.
You know things go in waves into extremes and already the peoples are -- if there.
You know 500 points and a couple of days is that an extreme or given the fact that this -- run up so far so fast.
And even right now is still up about 13% here today.
Is more common.
Well more volatility is certainly coming have we seen a high of the year not sure -- for the year but certainly for the near term we've seen the high across the NASDAQ.
S&P 500 McDowell lots more volatility you're going through that period of rotation but there is still some positive underpinning to the market.
And though we do see these daily dislocations in the wild intraday swings.
Earnings have been strong corporate balance sheets are very very strong there's lots of very very positive.
In terms of narratives within the market housing financials.
There's a lot of some fairly solid underpinning to the market so it's not as if one or two days or even a month -- -- -- volatility.
Should really disappoint people in terms of their longer.
All right real -- -- where Lucy Peter Davy issued today was that Ben Bernanke had this so coal.
You know -- and that is certainly slowing down the buying of the treasury notes a mortgage securities and like that it is really artificially -- these rates as low as they haven't.
Could begin a lot sooner than we -- I think the Fed buys 8586 billion a month might -- down to 65 billion as soon as September do you buy that.
Currently it is 85 billion a month.
I don't think it's going to be September I think we really should expect something in terms of a formal ship somewhere in the fourth quarter.
November December but I do think it's coming this year at least the initial steps -- shift towards that less stimulus less quantitative easing all right.
Thank you very very much Peter before this -- just wanna remind folks at of that that is really did the market's -- That the Federal Reserve is going to be there's sort of that's that the big -- of everything that you've been seeing going on all these up hours that we've been seeing throughout the year.
And that that they would always provide that nick -- team that released of the markets that it's -- was in doubt.
They were going to be there with the cast to keep interest rates low to keep this market flooded with the kind of stuff that it wants.
Now this year is -- not that this was gonna and because everyone knew was gonna and that that it might end sooner than we thought and then furthermore.
That that the the dimensions of it ending are gonna be bigger than we thought.
-- that's the fear and today it was Paramount.
In the meantime did President Obama -- elated even accidentally add fuel to all of this fire when he said this.
Ben Bernanke is a little bit like Bob Mueller the head of -- beyond this where.
He's our state a lot longer than him he wanted or -- -- But I think he's -- -- he wanted to be really -- he would reappoint he has been an outstanding partner.
Say that would be like my boss Roger Els saying Neal is one heck of an anchor and -- leaving it at that.
But think of what the president was saying about the Fed -- and of course the president appoints the Fed chief could -- if he wanted to.
-- saying he's worked hard to and -- -- that was the -- very similar now.
What does that mean to Fox Business Network start I -- for in -- Melissa Francis.
On how that plays out -- I don't think it Charlie do you first it would it would gives a feeling that the president would reappoint Ben Bernanke anyway.
But I'm almost getting the impression that he fired him on national TV had a -- Well he pulled the rug out from one under those kind of -- gracious way of doing because Ben Bernanke.
You know many ways helped get him reelected by -- all the money into the economy -- During the election year last year and bid being essentially the only thing kind of promoting economic growth because his fiscal policies as you know.
Even he admits that failed so yeah that's pretty bad -- will say this I was pretty shocked.
-- Ben Bernanke's statement just because they were very clear it and and concise.
And they basically said it very clear terms which fed chiefs don't do that you know we -- we're -- and as we get any sort of indication if it's probably going to be over we may even end it all together next year.
If the economy keeps -- starts it starts improving he knows that the markets are so -- on tender hooks.
About this notion of ending quantitative easing and you've got to think that it was payback for what he did because.
Oh yeah he didn't do -- Melissa any you know normally -- -- it before you fire person makes you have there.
Security test right Aaron -- that that they don't have weapons but but but -- this day.
I resent when I went -- and powerful weapon I'm not saying there's a child is tit for tat here and a beard could be the temptation to say.
You know I'm gonna letter -- maybe sooner than the markets night -- he I I don't.
I don't know about -- -- Ben Bernanke's part I mean I don't think what the president said with an accident I don't think anything he says anything accidentally you can read a lot into that certainly.
There has been a ton of chatter since -- Peter you're talking about wow this is really be and for Ben and I don't know any better and under the bus -- -- -- -- -- way Natalie -- and I happening in the no and it's a really tough thing for the markets because you look at how vulnerable they are with any change this is the guy who got us into this mess.
This is the guy who invented that formula do you take the pilot out of the helicopter while it's still flying -- -- we landed safely I don't know it's pretty crazy.
-- think about what what would Obama knows he knows that the president knows that Ben Bernanke is worried about asset bubbles so that's what you may end quantitative easing may have to end it.
So he basically says so he knows that his statement is going to be somewhat harsh and indicates somewhat that you know the end of the the crack cocaine in Africa it is covered it's good it's coming.
Right so what he does so he says that and then he starts floating it Ben Bernanke's success are likely successor Janet Yellen.
Who is Ben Bernanke on steroid.
Hello hello and you know you re certainly had similar -- what we view that that you know say -- you -- Ben Bernanke and a lot of people Mitt Romney among them Lester delivers on its campaign.
Who bemoan goal of this flooding out -- in the and the system just to keep it afloat.
That was artificial blood but many -- get on the right and the left that he seemed to be Ben Bernanke the only -- still standing.
And now that adults is going and we're left to you know what congress that can't get anything done a president -- right now -- a scandal plagued even if he wanted to -- can't get anything done.
And now they're an arm.
It's and the real danger of course is that interest rates rise in -- meaningful way and that damages the housing recovery this is nothing that's been the strongest right again and again.
That's we talk about -- that housing is coming back.
One of the big reasons that is because interest rates have been solo turn let me see so it's volatility interest rates go up and that hurts this housing recovery -- -- does it on the hands Eagles to -- the -- total not a robot to get out there and that's where Bernanke is worried about that -- that -- a bubble in housing.
Because it doesn't really reflect the unemployment in the real economy was -- -- reflect -- -- -- straight and -- and that's it and he's worried about bubbles in yet in the in the bond market zone that's right.
He wants to deflate this the president doesn't like -- so it's not personal it's just business it's somewhat personal stuff that has.
If you look at what -- -- only wanted their Janet Yellen that is Ben Bernanke on steroids I think she would go back to a more combination this.
Policy will will will we will we will zoom -- guys.
-- chairman I don't mean to jump shot or -- -- view us exactly but I do want you to focus on other develop the.
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