You were. Were hearing there could be other catalysts. Heard what financials like American Express a key component in the dow. But were getting wind they could be cobbling together a potential Health Care Deal. We dont want to get ahead of ourselves here but Connell Mcshane has the latest what could be the ingredients, the second attempt replacing and repealing obamacare. What are you hearing, buddy . Reporter neil, there is definitely progress being made in the house. The market is hearing that as well and liking what it is hearing with the 143point advance in the dow. There is definitely still work to do. Gop sources told fox business, theyre cost with the new amendment they could get as many as 20 additional votes. But senior gop sources they dont know if they will end up with enough. If they end up with enough to get it passed. Congress comes back monday. Back in session monday. They dont have scheduled time, timetable for a vote but they do say these sources progress is being made on health care. That is helping out the market. A draft proposal is making the rounds, states obtain a waiver from the federal government to do away with certain protections from the obamacare. In order to get the waiver the states would have to prove they bring costs down. That is part of it. There is more to it. Health care reform is still today, very much on the table. So well keep an eye on this. With fox business being told 18 to 20 nos from last time around, no votes could turn to yes. The emphasis is on the could there. Republicans were purported to be more than 30 votes short. Even if you get 20, doesnt necessarily mean you get it passed. There is domino effect. You talk about all this time, if you do get health care done makes it more likely an aggressive tax reform package gets passed. One feeds into the other that is the talk today in d. C. Neil wondering connell, if you get those conservative votes from Freedom Caucus members, do you lose the tuesday group, the moderates who werent keen on concessions being made last go round to the conservatives . Reporter we have to track this today, the emphasis on the could in terms of getting those votes and also on the could whether or not this means this would get passed. If anything is proven here, the president to quote partially what he said, health care can be complicated. It still is. Even if theyre making progress on one front, lets watch the rest of the day for any comments coming out of tuesday group. Well see. Neil Charlie Gasparino will have more developments. Wall street journal is reporting that anthem is making preliminary filings to indicate it will still be socalled part of the socalled aca plans in 2018. There were concerns that aetna and other was jettison. The eye to cobble together a deal, they will try to get something going. I want to bring in retired Lieutenant Colonel allen west. A former congressman as well. From that vantage point, if you dont mind indulging me on this health care stuff i want to pick your brain a little bit, allen. Very good to have you. It is always this balance satisfying the conservative members without ticking off the moderate members. Do you think if they cobble together a Health Care Deal, that that does speed up the time frame for tax deal . Well, good to be with you, neil. That is a very important part of it but i would also ask why did they take a twoweek vacation when we had pressing matters that are there . The American People and markets are looking for economic relief. The most important thing about Health Care Reform has to be repealing 20 new taxes of obamacare. Making sure that americans dont see a rise in their insurance premiums which right now the actuaries are out there working on those rates for the coming year of 2018. Neil do you find that some republicans are frustrated though that it has to be this way . The health care thing has to be first . I certainly understand the math behind it, congressman. That you need that, you know, trillion dollars over 10 years as a new revenue base, which to start making tax reform that much easier, but theyre still significantly a part of this issues. Maybe they resolve them. Had they gone in tax cuts, there was much more broad agreement. What do you think of that, if this fails, the attempt cobbling together health care fails, it is similarly going to do tax cuts . Youre absolutely right. Back in november, december, after the Election Results you should have military tiger team, sits down looking at Health Care Reform, looks attacks reform. Looks at the right type of parliamentary procedures that have to happen. American people dont understand what budget reconciliation is. They want to see these things done. When you have new Congress Sworn in these first 100 days, they should been able to get right at this. Lets be understanding that it took democrats some 18 to 19 months to push through the Affordable Care act, obamacare. If the republicans are trying to push through something that is not wellthought through within a month or two, i mean it could have some severe consequences and ramifications especially if the new acutarial prices come out next september of 2018 and the American People dont see a decrease in those insurance premiums. Neil all right. Colonel, thank you very much. I apologize for this breaking News Development but i would thought i would pick your brain about it. Who Knows Congress better, so thank you, sir. Meantime i want to let you know were getting a little bit more on the wall street journal on this insurance sort of offer here, still participate in the aca Exchange Plans for 2018. If you have the likes of cigna and aetna and anthem saying all right, we wont go, we wont quit these things, that could provide a financial bulwark behind the exchanges so that you still have those participating, you still have a framework which people can go to, so they dont lose coverage. So that delicate balance that exists here, its all in how they execute this and details of this, and whether insurers will gouge you to stay a part of this. But, the early read seems to be that they are inching, that is republicans are inching closer to a deal on health care, repeal and replace method. That will garner more votes. They say the latest reports, about 20 votes, with would just be enough to get squeaking passage in the house n the senate they start from scratch essentially but it could mean that tax cuts, really the wish of wall street, can materialize maybe not by august but certainly this year. One of the reasons the dow is up 157 points on this. A lot of us are charging like crazy on these things. Obviously we have the apstate for more buying. Appetite. Well keep eye on widening target for terrorists or those that foster or condone it. Secretary of state Rex Tillerson says iran is well on the way becoming another north korea if we dont rein them in. The retired officer sam pettis on that. What he makes of that of your coming here. If syria uses chemical call weapons were back in there again and escalation of tensions i iran and north korea. Do you think weve spread too thin . We put ourselves completely behind the curve. We allowed iran out of the box. We watched as syria spirals into chaos. We have work to do to dig out from the hole were in. Neil what do we do to get out . Some are looking at this saying that secretary of state was just claiming the emperor has no clothes and iran cant be trusted. Others say deals which we signed these provocations were not part of that deal. If we abdicate that, we lose something. What do you think . I think the iran deal is a disaster on its face. It will not stop them from getting nuclear weapons. But immediate problem here the price we paid to sign that deal allowing the iranians out from under sanctions and pressure, basically walking away, from controlling them has allowed them to spread chaos all over the middle east. From syria to lebanon, to yemen, they are on the rise, and that is a completely destablizing force in the middle east right now. Neil i found it interesting when i was watching a lot of Media Coverage on this, hey, u. S. , we cant renege on our word. Never mind the fact it is distinctly possible were talking about trust with a nation like iran. It seems like a collective read here that we have more to lose in the Global Community than iran. What did you make of that . We kept the iranians, basically we pursued a policy of containment and kept them in a box for basically in 30 years. In the course of eight years of barack obama we abandoned that policy, a disaster. The deal is a disaster. There is no way on earth we should continue to abide by the terms of a deal that is incredibly damaging to American National security. Neil what do you think we do . Leaving iran out of it, north korea argued that our presence in Korean Peninsula alone is provocative act. They plan to continue missile tests. One idea bandied about a retired general told me we should shoot down the next missile test and shoot down batteries which they launch in north korea. The russians have said, the chinese have said, those are very provocative acts. What do you think . So i think there is probably a range of things we have to be prepared to do in the short term. For instance, if we think they have a nuke they can put on missile, theyre prepared to use it, well have to do our best to take out those weapons, but the real solution is long term. That starts in beijing. The only reason pongyang continues to exist as communist dictatorship because of the chinese. We have to make clear of the chinese, status quo is no longer acceptable. Neil president s of all stripes have been urging that in the past. Sometimes i begin to think, maybe the chinese cant control this guy is a nutcase and they cant control the nutcase . The first thing we do we hope they still have the capacity to apply considerable pressure. This is not a unique situation where countries create groups or sponsor client state. Neil yeah. Exactly as you have described all of sudden they find out the dog is off the leash and they cant control him. That will be a truly nightmare situation. Neil wellput. Sam faddis, retired cia operations officer. Good seeing you. Thank you. Neil look what happened corner of wall and broad. Dow up smartly. Financials are a very big catalyst here but did not hurt matters from growing press reports, that republicans are closer, i stress closer, to cobbling together a health care replace deal on health care. That is something near and dear wall street want to see. They have been let down before, but right now they are liking what they see. Moodys economist mark zandi on the stimulus to come with that. After this. We asked people to write down the things they love to do most on these balloons. Travel with my daughter. Roller derby. Now give up half of em. Do i have to . This is a tough financial choice we could face when we retire. But, if we start saving even just 1 more of our annual income. We could keep doing all the things we love. Prudential. Bring your challenges. Just like the people every business is different. But every one of those businesses will need legal help as they age and grow. Whether it be with customer contracts, agreements to lease a space or protecting your work. 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Then why settle for slow internet . Comcast business. Built for speed. Built for business. Neil the dow in and out of session highs. American express certainly helping matters here. A tip of the hat for those spending dragging out those cards bus apparently a lot of you are doing just that. Verizon shares are down after an earnings miss. You know how that goes. The Wireless Subscriber decline was something the street didnt see. That is particularly hitting the stock although it is off its lows. The dow is off collectively is up collectively 156 points. All that has to do with all this fuss maybe republicans are cobbling together a deal on health care. We have moodys economist mark zandi is here. He famously predicted there would be a crash if donald trump got elected. You about he came back you Pay Attention to what i say. At least my wife is at amex. Neil tell me about it. Tell me about it. It is interesting, i read about the trump call, youre certainly not alone, but now what is your view where things are . I think the economy is is fine. I think the economy, six, nine, 12 months ago was on fundamentally sound ground. I think it is on fundamentally sound ground. I think it would take a lot to derail the train. I think the economy is in great shape. Neil first quarter, it is not in great shape. That is anomaly of first quarters, it could be under 1 f that is, would it raise concerns . It shouldnt. That is statistical, seasonality stuff. Shaving a point off q1 gdp growth. We were growing 2 last year. Neil republicans argue we could grow a lot more with a tax cut. One of the reasons dow advance, there are many, they clear the Health Care Hurdle and repeal and replace effort going that has more support that clears the way as well for tax cuts. Are you in that camp that tax cut gives you that growth . I think a Corporate Tax cut largely revenue neutral at least on dynamicallyscored basis, that is good policy. That makes our businesses more competitive. Also our Corporate Tax code really penalizes multinationals. It is kind of a messy systems. Neil dont a lot of Small Businesses pay at prevailing individual rate . They do. Neil dont they need one at individual rate . If we could figure that one out. That gets you into the personal income tax code. That is very complicated. Neil you would be against touching personal rates. If you could figure out in a way that makes it also revenue neutral. Neil what does revenue neutral mean to you . I have some on this show including espouse supplysider view, art laffer, saying it is okay to run deficits in the near term because you get revenue and then some in the longer term, so dont worry about it. You say . Well there are economic benefits to cutting taxes, no doubt about it on the corporate side and on the personal side. So there should be some benefit, they say dynamicallyscored benefit to cutting taxes. Neil because you dont see the dynamic of that right away, right . It takes time but we need to be prudent. You cant go overboard, its a forecast, it is a prediction. Neil right. I think Arthur Laffer for example, i wouldnt go down, as far as he would go because he think this is would generate enormous supply side benefits. Of the economy would be so much larger neil i think he prefaces that by saying if the tax cut is significant. Yeah. I, at this point, that argument kind of resonated with me back when Ronald Reagan first got involved, marginal rates were so much higher. Neil we didnt nearly have debt or deficits. Exactly. That deficit was 35 . Neil that kind of hamstrings. It does. We need lower Corporate Tax. So i, we should take this in steps and make it manageable. Lower the Corporate Tax rate. Make the Corporate Tax system more sane. A lot of things to prove it. Neil right. Lets do it in a way, we dont have to get all the way to revenue neutrality. We can count on some economic benefits, but lets be prudent about it. We do, that is a win. Neil i have read, this will be shortly, with our own people here, what is keeping the dow so strong . You know, while off the levels, s p is only 2 or so from the march 1 highs. What is doing it . He well, ask yourself if you sell stocks, what will you do with it . But it in deposit account at zero . No. Put it in longterm bond . Worried rates will rise. No appreciation there. Put it into housing . We got creamed by housing. There is a question the stock market feels overvalued to me. The pes are high. Neil there was a day we were worried about protecting what we had. Do you think it is getting a little too devilmaycare . The other thing going on, boomers, folks in the 50s, hanging out in the equity market to a larger degree than previous generations at this point in life cycle. Many are not prepared in the retirement. They cant get return in the deposit account. Theyre not in the housing market. Economy is sensitive to swings in the stock prices. Particularly with a lot of red on the screen, boomers will pull back very quick lift i worry about the equity market. It feels highlyvalued. Neil quickly the Federal Reserve is out of the stimulus business, balance sheet, 4 trillion plus they will unwind. Only game in town would be something fiscal, right, to goose things . It is not about goosing anymore. Were at full employment. 4. 5 . Neil were at meager growth. We have to get used to that . No. We have been talking about longterm sustained growth. Corporate tax reform. Immigration reform. We should be neil what is acceptable growth level for you . Anything better than two is acceptable. Ill take it. Corporate tax reform under the best circumstances will not take you to three, certainly not 4 but take you to two, 2. 3. Neil that is substantial. Over 10, 20 y