Were finishing. Some trades settling out. Another volatile day in the markets. Look at the s p 500 and the nasdaq, a similar pattern. You can see the same rockiness throughout the day. But one thing i want to highlight as well are these tenyear yields. So up again. 2. 87 . You know, this is settling a little bit. This is what we talked about last week when we had the stronger than expected print on the jobs report. The idea of Wage Inflation having gone nowhere for almost a decade and accelerating quickly and pushing the treasury yields up and making everybody worry that the fed is going to get in here, be more aggressive and there fore make borrowing more expensive. Youll see behind me the oil trades. This is the price today. Its a fourweek low. A lot of that based on inventory. Copper being hit as well. So just this whole kind of volatility, the main line here is its not just about stocks. Its hitting every single kind of component. Every element in the market that we follow. One last thing to leave you with, neil. I know youre talking about following quickly whats going on in d. C. The 300 billion plan. Some of the spending i wanted to highlight, the stocks well follow as a result of the spending. Weve been talking about spending more on military. I took a look at defense stocks and healthcare storm as we. You can see thats defense. If theyre going to close for the day, healthcare as well. Theyre down due to the fact that theres increased spending in theory on dealing with the opioid crisis. So a lot to follow. A lot of moving parts in new york and in d. C. And reaction. Neil its a mess. And to deidras point, the twoyear deal to satisfy both parties, both parties were satisfied with essentially hundreds of billions of extra dough that they could spend as they wish. Listen to what Mitch Mcconnell and Chuck Schumer have in store. The agreement will clear the way for a new investment in our nations infrastructure. 20 billion to augment our existing infrastructure programs. Fund new grants, prevention programs and Law Enforcement efforts in vulnerable communities. 6 billion to fight against the opioid and Mental Health crises. Unwind the sequestration cuts that have cut our armed forces. 4 billion in defense spending to rebuild and improve veterans hospitals and clinics. Also provides funding for Disaster Relief effects. 5. 8 for the bipartisan child care block grant. 2 billion for the National Institutes of health. 4 billion for college afford ability. Lift funding for domestic programs by 131 billion. The budget deal is a win for the american people. Neil all right. Thats always in the eyes of the beholder. I didnt make that seem it was only Chuck Schumer adding to this. The republicans were just as much. In all, 300 billion in spending beyond what we have right now. Both the republicans dug into that trough and the democrats. Im not implying this is just Chuck Schumer and his piling on. Both parties have gone ahead and turned their back on sequestration cuts that they agreed to years ago that was supposed to be an automatic spend backbone in case they couldnt do it themselves. Now they have said thats done. That is over. Keep in mind, were looking at a deficit topping a trillion dollars on both parties and no indication as to how they will ever address that. Peter doocy with the latest. I guess this is not a slam dunk. Its not, neil. As you just heard, the senate top democrat Chuck Schumer likes this deal. He was one of the negotiators. Across the capitol, the top democrat in the house, nancy pelosi, really does not like the agreement. Heres how much she doesnt like it. For almost six hours shes been talking nonstop about daca protection. But because daca protections are not part of this spending agreement that the democrats came up in the senate, theres no guarantee that she will give her members in the house a blessing to support it. Thats why a shutdown is a possibility at this hour. This morning we took a measure of our caucus because the package really does nothing to advance a Bipartisan Legislation to protect dreamers in the house without a commitment from speaker ryan comparable to the commitment from leader mcconnell, this package cannot have my support. Statements like that put the entire package in peril. Republicans may not have enough of their own votes to support it without any help. Thats because some conservatives are not happy that the spending cap that just went away are not matched by similar cuts elsewhere in the senatebacked bill. I think its a bad deal. I think its unfortunate this is where it goes. We were in a good position to break this idea that the democrats always get the defense cuts for growing government and growing social programs. Its unfortunate. I thought we were in a good position to win. Its unfortunate thats not where its going. The hallways of the Russell SenateOffice Building across the street from the rotunda where i am have been clogged for most of the last hour with daca protesters that have been having sitins and screaming. No doubt lawmakers can hear them. They can hear pressure from constituents about daca, but so far none of the legislation that is being considered by the senate or anything that is set to be considered by the house has any protections for daca recipients. Seems like gop leaders in both chambers want to wait until the daca deadline, which is next month. The only thing that could change that is a shut down tomorrow. Back to you. Neil thanks very much. I want to emphasize this is on both hearts, both parties. Its not just about democrats wanting daca. This is about both parties abusing dollars and cents equally, equally. Not one over the other, both are cheating on something they agreed to a little more than seven years ago and theyre recklessly avoiding that. Thats why Interest Rates backed up today and thats why a big jump in the dow turned around on belief that these guys have created a problem and this next guy agrees. Hes a hell no on this budget deal. He doesnt like what hes party has done and doesnt like what democrats have done and doesnt like the fact that we forgot about fiscal resolve. Hits alabama republican congressman, mo brooks. A member of the House Freedom caucus. Youre not a fan of this, are you . Absolutely not. It is a debt junkys wildest dream with all the spending of money that we dont have. We have to borrow to get and cant afford to pay back. You can see that reflected in the credit markets where were going to embark on an unending stream of annual deficits, money taken outs of the credit markets that drives up Interest Rates. Its unfathomable to me that we want to bankrupt a country that took centuries of our ancestors to build but this legislation goes a long ways to bringing about an american debilitating insolvency and bankruptcy. Im shocked how irresponsible this piece of legislation is. Neil in just two years, sir, as its written now, you spend 300 billion more, whatever democrats think of nondefense and it needing it, there doesnt appear to be any resolve to slow the growth of spending now. I did talk about what was going on with things like the tenyear note and all backing up today. I believe in large part due to the government essentially shrugging its shoulders at this. The economics are simple. If fox were to borrow about 25 of its operational costs every year before long, neil, youd be out of a job. Fox would be out of business. Same thing with family. Same thing for our country. People need to look at what is going on in venezuela to see how bad it is when a Central Government goes in bankruptcy. Recently, 800 inflation rate in venezuela. Is that where we want to take the United States of america with an insolvency of our Central Government . Recently over 12 months period of time, 75 of the venezuelan population suffered an average weight loss of 19 points because they cant get the food, the calories to sustain their body weight. Nurses and teachers are going across the border into columbia setting up houses of prostitution, earning money that way than buying food in columbia and hiring mules to carry the food back to their kids in venezuela so they dont starve. Again, this idea that we have unlimited amounts of money to borrow is fiction, dangerous and needs to stop here. Youre right about that. You dont knee to be a democrat or republican to see that. Thank you. Thank you, neil. Neil both parties talked about how brave this was to do. How vigilant they were to do the right thing. Theres no bravery in going to a restaurant and order an appetizer, main meal, extra desserts and wine and charging somebody else for all that. That someone else is else. Theres nothing brave about that. Everybody signing on to this and patting themselves on the back thinking they have done something dramatic and good for the country, no, no, no. Again, that is what rattles the markets and should rattle you. Lets go to gary, scott and katherine. Katherine, my worry with this is if they call this progress and id like to know what lack of progress is. Youre right, neil. I loved your analogy with the meal. This is what can take the markets down, kneel. The biggest concern for me and im bullish on equity markets for a long time now is inflation. If the government goes whole hog on spending as weve seen in the past, that is in fact inflationary. If its inflationary, the fed has to go to the upside. Has to hike rates. The fed hikes rates, we see the treasury breaking 3 . We broke 280. Equities wont make it to 3,000 if you get risk off sentiment, which that will induce. Scott, the read here is that rates are backing up a little bit in the scheme of things. No need to worry. Right now the markets are worried that this is going to be a big jump in rates and where it stops nobody knows. Unlike the 80s or anything like that, but high enough to rattle investors. What do you think, scott . Absolutely correct. Number 1 is that we saw a little wobble last week. We thought Interest Rates might go higher. Number 2, if we get a Infrastructure Spending plan and the government does the spending they do now, yeah, theyre going to borrow more money. Its simple. I have an agricultural background. If it doesnt look good, smell good or taste good, its not good. We cant use common sense anymore. Were back to say whatever we are, 25,000 on the dow. On the way up, it was so overbought. We cant pile money in now. 1,500 points, we made to it 26,000. Now were 25,000. Weve lost our minds. Congress has lost their minds. We have to say hey, this doesnt smell good. Doesnt taste good, its probably not good. Thats it. Yes, rates will back up if they borrow as much money as they say theyre going to borrow and we have an economy with inflation sticking in. Theres no other recipe out there to put a cap on stocks like that. Gary, im worried this is what they call progress. Then you have to go forward and wondering what would get us out of this or what would calm the markets down. Obviously they chewed on this all day. They thought ill of it. You know, neil, weve been talking about this for a very long time. All i can continue to say is they continue to taunt the markets, the economy and the w future of this country as this money is coming out of the economy. The growth of Government Spending is obscene. Ill give you a couple numbers here. Next year, 400 billion goes just to pay the interest on the debt that they have all created throughout the years. In four years, its going to be over 700 billion. Thats money that could go for roads and bridges, indigent that they complain they dont have enough money about. All that is going to a black hole as we move forward and the trajectory is not changing. Even the republicans, the conservatives that say theyre for this and if you elect us and put it in the white house, well do something. Theyre not. Theyre doubling down right now. Neil can i neil i cant. We have breaking news. I do want to get to this idea that this is the start of something worse. They have just made an accord that they hope to stick to for two years. A trillion dollar budget this year. That was before any of this. Theyre drunk with power and your money after this. Neil all right. Well, its the first thing, a direct comment from the president on the sudden turn around in the markets. The president tweeting earlier today in the old days when good news reported, the stock market goes up. Today when the good news comes out, stock market goes down. We have so much great news about the economy. Hes wrong on that. The market in the past would seize on whatever it could. Good news would be good news. Bad news would be greeted down depending how bad it was. Sometimes good news would be deemed to be a problem because it would lift up Interest Rates. So we havent seen of separated ourselves from market history or how it reacts. Whether you like that or not. Former reagan economic adviser, art laffer. The latest is things are picking up steam. The president is right to say this is in response to good news. Wage growth that is now accelerating close to 3 pace. It seems to be the moment where people are scratching their heads saying wait a minute. Maybe this will lead to more of a backup in rates than is warranted. What do you think of that . What i think is the backwardlooking news is good. The employment numbers, the gdp numbers, all of these are good. The forwardlooking stuff on this budget, for example, this is a far cry from fiscal restraint and spending restraint. Its not that at all. You know, we need to have Milton Freedman said it all the time. He said Government Spending is taxation. It really is. They have to get that money from someone and its from you and me as you said a minute ago. So im a little worried about the spending side of the equation. Overall, trump has done a good job since hes been in. The markets are up quite a bit as well since he came in. Neil you know, looking back at Ronald Reagan, a lot of people have compared the tax cuts, the approach of less government. Ronald reagan was big on not quoting markets too much. Quoting other things, the growth in jobs, the gdp, those kinds of things. If you had to advise President TrumpGoing Forward given the volatility of the markets to hang his hat on things that are demonstrable like the pick up in economic activity, like the pick up in companies that are sharing the tax cut loot and let the markets speak for themselves . You know, you have to remember that in the first two years of the reagan administration, markets were way, way down, neil. Theres no way neil i remember when Ronald Reagan looked like a onetermer. Yes. The tax cuts took off. President s should talk about what they want to talk about and make their case the best they can and then have all of us look at them and challenge them. This president has done a great job in his first year on if economy. I wish this budget deal were a lot less. Im much more with the freedom caucus. But i prefer a strong dollar. A strong dollar is very important. That to me bothers me. When you have a weak dollar, you get higher inflation and higher Interest Rates. Thats not smart. Neil and this is going to make it weaker. I agree. With the tax bill, its pretty good neil. Neil well watch it closely. Thanks very much. Art laffer. Were going to meet the republican congressman that just tried to shut down the president s shut down talk. This time not behind his back, to his face. There are two types of people in the world. Those who fear the future. And those who embrace it. The future is for the unafraid. The future is for the unafraid. A little to the left. 1, 2, 3, push easy easy easy horn honking alright alright weve all got places to go weve all got places to go Washington Crossing the delaware turnpike . Surprising. Whats not surprising . How much money sean saved by switching to geico. Big man with a horn. Fifteen minutes could save you fifteen percent or more. If we dont change it, lets have a shut down. Well do a shut down. Its worth it for our country. Id love to see a shut down if we dont get it taken care of. We dont need a government shut down. Both sides have learned that a government shut down was bad. It wasnt good for them. We do have bipartisan support on these things. Neil you know, you have to admire Barbara Comstock telling that to the president of the United States. A lot of people leave the room and then start talking. Barbara comstock now here with us. Good to have you here. Good to be here. Shepard what did the president say about that . We were talking about the ms13 gang problem. That was the purpose of the whole meeting. The president is understandably frustrated that right now its not illegal to we cant remove people that are ms13 gang members here automatically and i have a bill that has passed in the house with bipartisan support to make gang participation or activity a removable offense and not allow you in the country in the first place. So Trans National gang members, ms13 neil and you were ticked off. The president was rightfully exactly. Neil you said not to the point of risking shutting down the government. Well, what were all agreeing on that we can do in my pint is, i think theres a lot of senator thats he can impose upon and red trump states, even democrats, to support removal of ms13 gang members. My point is we dont need to shut down the government to get these ms13 removed. We already have in one bill that i have. I also have another bill to work with ice agents and gang task forces that are cracking down and removing people now in the administration has been doing a good job of it. But i have always been opposed to government shut downs for the reasons secretary mattis stated today or yesterday. He came up to our conference and secretary mattis said its very destructive to the military and destructive to the continuity of government. Its costly. Its bad policy. The schumer shut down or democrats learned that a shut down was b