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>> the economy is strong in terms of the metrics of employment. it's a seller be strong in terms of employment rate for minorities, women and so on. we look at business investments, that's declining. >> chris: mollie? >> we've been told years that terrace would destroy the economy. after donald trump , anything can change, but our predictors are pretty wrong. the democrats need the economy to be problematic so they can run on that and the economy keeps blooming. >> what's going on is the fed are promising lower interest rates, nowhere to go with your investments but a low interest environment,...

The health of businesses and manufacturing and spending among businesses. and when businesses hold back on their spending, what happens? they start laying off people, they start cutting those capex spending plans as we say. and that shrinks the economy and that is not what they want to see. >> back before the recession, interest rates were at 5%, bank rate -- best bank rate is about 3% higher than that. so a good customer was paying about 8% for a loan back then. and then this cliff was the resettle. it cut rates and we had basically zero until 2016. >> right. which is why we are seeing the st...

Maybe you go around it backwards. raise deficits as an excuse to cut social programs. the fact is i'm not sure people care all that much about deficits be a great discussion to have because when deficits give you a good return on your investment, james, would you agree they can be useful? in a low interest environment, you go into deficit financing because you are rebuilding fantastic infrastructure and you're getting higher taxes -- >> it's what you're spending -- it's what you're spending the money on i think people and politicians will care when markets care. right now markets don't care ei...

To make money in a low interest environment, everybody piles in the stock market. that played a huge role in the huge gains the markets have seen since march of 2009, end of the great recession. the federal reserve typically raises rates when an economy starts to get hot or prices like inflation start to rise too fast. that's what the fed rate hike is doing now because the economy they deem to be strong enough to handle modest rate increases. 25 basis points at a time. one quarter percentage point at a time. yesterday, president trump called the federal reserve as we discussed crazy for raisin...