Announcement on saturday that he would be the v. P. On Donald Trumps ticket. Huge chaos yesterday on the floor in the Late Afternoon when those who were trying to stop donald trump from being the gop nominee tried to get a vote on the floor. It was chaos. This was going to be the moment, i want you to look at the woman in the blue to the right there in the corner. Shes coming up right now. She is the colorado delegate who serves on the Republican Convention rules committee, cofounder of the never trump delegates, the unbound soup r pac, the group failed in its change the party rules to unbind delegates who could vote their conscience and then you thought hopefully maybe trump wouldnt get on there, did we get that right . That was the goal of free the delegates. The Unbound Movement was making sure that the delegates remained unbound forever. In perpetuity we want delegates to do their job and that is vote confidence. It was more than that in the coalition of people that came together because this was a reaction to an extraordinarily tough overreach of the rnc. What they basically did is they encapsulated all the power from the Grassroots Movement and took it to themselves. And so now the voices of the delegates are irrelevant, the votes are irrelevant. So you had a coalition pushing back against that overreach because donald trump proved hes nothing but a consummate insider. Let me ask you this, if youd actually gotten the floor vote, if all the floor delegates could really vote, do you still think donald trump would have lost . Undeniably we have the votes. They bussed in and shipped in all the orange and green hats, trump wips and rnc working together, huge nono combining those resources, what they ended up doing was voting. They were the voices you heard. They were noncredential. This has been robbed from the grassroots. This is why theyre going to have a pushback they think were now united and go out and work for this ticket. Thats my question. What do you do now . Youve lost, right . We havent lost because theres more to come . Get to vote their conscience tonight because conscience cannot be given by the rnc, it cannot be taken from the rnc. Even when i was on the rnc rules i was only codifying that exists. Is this a push to get trudon trump on the he coerced votes from delegates. He cant do this. General election, fast forward to november. Youve got Hillary Clinton, donald trump and the libertarian candidate. What are you going to do . Well, im actually going to cast a protest vote and write in Ronald Reagan because i want to say i voted for him, but most people involved in the unbind movement were making sure he was not our nominee initially. So they have actually not determined before now that they were not going to vote for donald trump. But now when they realized they were completely shafted and told they were irrelevant, that doesnt inspire the conviction to go out and work for a candidate and tell their neighbor that theyre the best person for the party. I hear all of that, but if a large percentage of Republican Voters choose to abstain, those end up being votes for Hillary Clinton, dont they . S well, im not voting for Hillary Clinton. But it helps for donald trump. In the long run because of the winner take all states, the handful of votes, its not going to matter. But there has been a massive exodus of republicans, they called it the exodus day. And theyre denying their republican registration because of how theyve been treated. Who would you rather see president , Hillary Clinton or donald trump . Im going to vote my conscience and the voters need to vote their conscience. Hes promised he can win without the conservatives, so go win without the conservatives. Prove it to us. He said its not the conservative party, its the Republican Party, going to be the workers party. Are we on a verge of a permanent leave in the Republican Party as a result of this . Unfortunately i think youre going to see a multiparty system because weve been used and abused by the system. The democrats could say the same thing. With the bernie supporters, almost a divorce. They should be watching this going into their convention because this is the grassroots base, what theyve done is said youre irrelevant. And they have taken all the power under themselves. And the delegates are just simply not inspired to go out and tell their neighbors please vote for the candidate because theyve shown that theyve been willing to mitigate us and just relegate us to the back room somewhere. Heres the interesting thing, donald trump ran as an outsider. And he convinced everybody im not one of the insiders. That was his whole platform. Wouldnt be the first time weve seen no hypocrisy amongst politicians, right . Thank you so much. Kendall unru with the never trump movement, the unbound delegates movement. See where things go from here, brian, back to you. Michelle, see you in a bit. Staying with politics because it appears some in the gop are trying to lift a page from the democrats playbook and calling for the restoration of glass steeg l, its a surprising move. Is it simply a political stunt to grab Bernie Sanders supporters. Managing director of acg a analyti analytics, author of colossal failure of common sense a book about the financial crisis and a guy formerly at Lehman Brothers. But, larry, youre the quintessential wall streeter, and i say that with love. And yet you believe that glass deeg el should be restored and the big banks should be broken up. How come . Absolutely. Brian, when i wrote my book i sat down with the highest executives, the revolutionaries within lehman that were trying to stop the madness and person after person told me this one thing after being dismantled by the Clinton Administration and the republican congress, the banks in america had all these deposits they were massive advantage to banks like lehman, so the lehmans of the world, ber sterns has to lever up 8,000 to 44 times in 2008. So the Smaller Banks because of the big banks with the large deposits had to massively lever up. I really think its a slam dunk. Thats just honestly really thats just silly. I understand there are hard feelings by people over at Lehman Brothers who thought lehman should have been saved, but had nothing to do with the financial crisis. Lehman was levered up because of the deterioration of its assets and doubling down and trying to save itself in 2008 from some pretty bad practices. But that had nothing to do with glas it was monolined institutions likie indy mack an investment banks like Lehman Brothers and behr sterns would not have been effected by it either. It was universal banks products able to sustain themselves. Goldman was levered up, larry. So were a lot of the big multiline banks, right . Of course. But, tony, youre missing the point. Sure leverage increased in the 2008 era, but the moment glasssteagall was dismantled. Leverage increase because small banks had to compete with large banks. Lets get something straight, this 8 trillion of deposits you cant have those deposits. These are hard working people, you put those deposits in banks with say 200 trillion of derivatives, its a colossal failure of common sense. It makes no sense. Bring back glasssteagall. Thats not the situation today though at all. Look at capital, liquidity, sources of shortterm funding. The things that contributed to instability were not just that there was some increase in leverage, but if thats what you believe that leverage was a problem, leverage has been taken care of. You cant have levels of leverage that you had up to those periods. Weve already increased, we doubled in these institutions, more than doubled the amount of capital, increased the quality of capital, increased liquidity, took away their business practices. And even, you know Elizabeth Warren doesnt think that glasssteagall contributed to the financial crisis. The argument it did is just silly. It has nothing to do with the state of banking today. We already have a lot of reforms in place that have taken away the very things youve listed as concerns. Guys, great discussion. But tony, lets switch back to politics. Bad politics too. Lets frame it with the rnc. Okay. Even though you obviously dont agree with it, do you think its a smart political strategy . Or just a cheap suit . No, i think its a desperate lurch on the part of the the Trump Campaign has always had this belief that they could absorb Bernie Sanders voters. And the problem with that is that Bernie Sanders voters dont just have a problem with wall street, they hate donald trump on a whole range of issues because of what he said about women and immigrants and his tax policy. Lots of other reasons. The idea theyre going to overlook all these other reasons why they hate donald trump in order to support him for this one reason, which they know enough about donald trump not to trust him, theyre not going to be there for him. For republicans the problem is that, you know, republicans are broadly free market conservative and they see this kind of lurch as another reason to be skeptical of donald trump. Larry, its michelle here. I dont understand why you want to bring back glasssteagall when the major institutions that failed werent even really subject to it. Lehman wasnt subject to glasssteagall. It wasnt a deposit taking institution. Aig got in trouble for stuff not related to glasssteagall. All the constitutioinstitutionsd had nothing to do with that. We talk about commercial banks we talk about basic bank that takes deposits. They got in trouble for writing bad mortgages. Even if glasssteagall comes back theyre going to write mortgages, and i bet in the future theyre going to write some bad ones. Its an even playing field. You cannot take a commercial bank with 2 trillion in deposits and have it compete with a small investment bank. Tonys point on leverage, leverage is irrelevant. The leverage now is government bonds which arent counted as risk weighted asset on Bank Balance Sheets. So you have these banks around the world massively long govlt bonds, which have gone from 100 to 190 in the case of german bonds. Youre talking about risks on Bank Balance Sheets not counted as risks. We could have a separate conversation about where european banks are and where theyre getting their capital liquidity. Its very different for the american banks which is what were talking about with glasssteagall. 30year treasury, i know youre not a risk taker, look at the price of the 30year treasury. Youre talking about these bonds trading like equities on Bank Balance Sheets not counted the right way. For politics sake i think mr. Trump made a brilliant move. But, larry, if they brought back glasssteagall, would they not have bonds at that price . I dont understand. The point is is that the big banks, the investment banks are competing with massive amounts of deposits on the big Bank Balance Sheets. So in other words in order to compete in 200 Human Resource four, five, six and seven, the banks had to lever up. Again, guys hold on, no, tony, the point of the segment was supposed to be about the Political Part of it. I appreciate the sort of deep insight into why it happened and sort of glasssteagall, but, tony, i want to bring it back to what it is which is will it win the gop any votes for saying it . It wont. Because look youre not going to out Elizabeth WarrenElizabeth Warren. What Elizabeth Warren is doing every single day is shes out on twitter and giving speeches and talking to reporters and reminding all of those Bernie Sanders voters why they should keep hating donald trump. The idea is just pure fantasy trump is going to be able to capture those voters. Theyre not going to be there. Its a silly distraction from what has become a silly distraction of a campaign. If i said to you, tony, next time i see you ill have a drink and give you a hug. You dont mind a hug, but its not going to decide whether or not we have cocktails. Were not getting married. Guys, good discussion, wide ranging. Thank you. Lets get right now to Bertha Coombs for a market flash. Bertha. Brian, weve got the insurers today under pressure on reports that the doj may be poised to file suit against the companies that are trying to merge. At issue in aetna and humana is the private medicare plans for seniors. At issue in the anthemcigna deal is their overlap when it comes to commercial employer plans. We are told that there could be a deal announced as early as this week. Humana shares hitting new 17 month low on the news. Is 2016 the year we finally hit peak apartment . Were talking about real estate and your money ahead. You know what, guys . Theres a lot of tree branches and dry brush over here. We should probably move the bonfire over there. [smokey whistling a tune] im guessing smokey liked that idea. Welcome back to power lunch everybody. Im tyler mathisen. Could one of the hottest areas of the Housing Market be peaking . Lets get to diana olick in washington. Home building continues to move forward but not nearly as fast as most would like. One analyst went so far as to say its in a slump. Take it by the numbers. June total Housing Starts up 4. 8 from may, down from 2 of june of last year. Single family is the driver right now up 4. 4 for the month, 13 from a year ago. Multifamily apartments, thats where were seeing the slowdown. Starts are up for the month, but down nearly 24 from a year ago. And that has some saying we may be hitting the peak in multifamily construction for this cycle this year. Now, permits which are an indicator of future construction, edged up from may but nearly 14 lower than a year ago. Again, led by that big drop in multifamily. So why would anyone call this a slump . Well, Patrick Newport of ihs global says Single FamilyHousing Starts fell 3. 5 in q2. As a result residential investment in the Second Quarter will likely be a drag on gdp growth for the first time in nine quarters. Trul yas Ralph Mclaughlin said monthly starts about 20 below historical averages and nowhere close to meeting that pent up demand for housing. One thing im hearing more of is nesting is investing. That is that housing is getting so expensive now and its so hard to find a good house that people are choosing to stay where they are and renovate. Might be worth it, guys. All right, di, thank you very much. So with a slowdown in multifamily homes, have we reached whats being called peak apartment . Lets bring in Bob Wettenhall at rbc capital markets. Always good to see you, bob. Thank you, tyler. Do you agree with the thesis that we may if not seen a peak in multifamily building, at least were beginning to turn and the wave may be turning over. We think we have peaked. And we think this is the beginning of the fall. So right now were going to see a big shift. Housing recovery stronger for longer, but beneath that theres a material shift between Single Family detached away from multifamily construction activity. Its great for Home Ownership. Its bad for rental vacancy rates. Lets take those two parts apart. If i am a renter or a wouldbe renter, are my rents going to come down over time . Thats number one. And if im an investor in the companies that build or invest in multifamily, is the time passed . The time is passed number one. We see a distortion. Rents are too high and affordability for new Home Ownership is very high as well. So this cant this imbalance has to normalize over time. So rents rent fever is going to break . Rent fever is broken, man. And so is multifamily construction. And the beneficiary is renters becoming homeowners. So before we get to some of the Home Building companies, the Single Family built which i assume would be the ones that would prosper . Thats right. Lets talk about some of the multifamily builders that are cautious. I would be cautious on the reits sector. We have a lot of supply on the horizon. Its not a great time to be there. So you see this as a time where renters become buyers. Yes, sir. That means Single FamilyHome Builders are going to go farther. Precisely. Which ones . Well, for starters we like the resale market. We see mid single price depreciation and tight inventories, 90 of the u. S. Housing market, its a great place to be. Prices to dianes point are still going to move higher. And in the for sale market new homes where the public builders operate, prices are still too high. Theyre going to see pressure. Whats big, whats hot right now, entry level and move out buyers, so companies that are well positioned to leverage themselves at this point in the recovery include stocks like d. R. Horton. Entry level. Cal atlantic on the west coast. And we also like a distributor, bmc Stock Holdings. What does a distributor do in housing . They provide the wood and other products used to build homes. So they its a Building Supply play basically. Thats right. And bmc has a better mouse trap. They have a ready frame trust product. And we think this is a fantastic product becaus