tv Making Money With Charles Payne FOX Business July 30, 2019 2:00pm-3:00pm EDT
neil: that didn't take long. "the lion king" surpassed one billion dollars in global ticket sales, 19 days after its release. i don't know if that is a record, probably not, when you consider avengers. not too a shabby. charles payne, market maestro. charles: one company getting all the money. doesn't really matter at this point. neil: you're right. >> disney rings the register. i'm charles payne this is "making money." of the major indices are slightly lower, anxiety over the fed and china overshadowing a monumental surge in consumer confidence and experts are worried about the downside of low rates. the bubble word is bubbling again. we are awaiting fresh comments from president trump after he expressed no regrets blasting elijah cummings over the conditions in baltimore. alveda king met with president trump yesterday and said the president is not a racist. she joins me later in the show.
cap it will one shares plunging after a massive date at that breach exposes 106 million customers private information. dragging amazon into the mess. that and so much more on "making money". ♪ charles: the fed kicks off the two-day meeting, the president has a message, start cutting. >> i would like to see a large cut and i would like to see immediately the quantitative tightening stopped. >> quarter point enough? >> then to have done quantitative tightening, also higher interest rates simultaneously, i think was a big mistake. charles: while the fed is expected to cut rates a quarter basis point president trump's unrelenting pressure on the central bank comes as the american consumer continues to hold up the economy. consumer confidence surging to 135.7. keep in mind that versus an estimate of 125. here to break it down,
bellpointe chief strategist david nelson and author of the up side of inequality, ed connor let me start with you, david. first of all, the fed tomorrow, what do you see happening? >> it will be 25. this is the worst-kept secret in a long time. if you cad me the question i might have gone with nothing as the economic data is very strong. the economic data and consumer confidence goes back to bush 1. 25 is a lot. 50 is a stretch. charles: this morning we got consumer income and spending. that core pce number, not to get too wonky came in 1.6%. the get canned get anything around 2% area. this is the main reason people argue for lower rates. >> i don't see any inflation for a decade now. charles: what about deflation? >> deflation? we have too robust growth. not like we have threateningly
good growth. welcomingly good growth at moment. i don't see inflation. i don't see much risk at all there. charles: a rate cut tomorrow, do you agree with david, in a sense it is in the cards? >> i don't see how you leave the rate, i believe markets set the rates. not the fed. you can't leave the, fed funds can't stay where they are where the market is. you're basically restricting credit when the time you have good growth, not threateningly good growth. would would you want to restrict credit? charles: there are good pockets in the economy. pending home sales are better than expected. first year-over-year increase in 17 months. we have large swaths within the economy that need help. the fed seems like they're breadth of what they use to term their actions gets wider and wider every day. how important are things like manufacturing and housing? >> they're all important. i think what the fed will call
this is likely termed an insurance cut but i look at the yield curve, it almost demands a cut. charles: why just 25 basis points? a week ago new york fed president weapons says hey, we don't have many arrows in the quiver, use them all now? >> why do that. you can spread that out. get one now. another in september, and maybe one more at the end of the year. it will clearly going to happen. excuse me, we're inverted beyond 10 years. germany is negative out to 17. it is going to happen. >> ed, i consider you to be a economic genius slash purist, are you concerned about these low rates. are you concerned, "barron's" with negative article on software stocks, used the word bubble. jpmorgan brought up the term, overvalued. this morning we had a couple first used the word bubble, with respect to a whole lot of areas in this economy. are you concerned about the negative impact of keeping rates this low this long? >> no, i'm not concerned about
bubbles. the way you get growth through speculation. i'm not a big fan of financial speculation. we can't really control it. high stock market means companies are more likely to invest, trying to drive up their stock markets. i don't see much threat of any overinvestment or overspeculation at this point. we're getting nice, moderate, steady growth in two, to 2 1/2% range. that is exactly where we want it to be. i think the real rate cut here is probably more than a quarter, less than a half. they will not go to a half. they will go to a quarter sus it out. charles: maybe go to another quart. >> they might. charles: the street is handicapping three rate cuts. >> coming into the tomorrow 16% of the economists think it will be 50. i don't see that happening. there are some excesses out there. corporate debt is now approaching record levels. charles: you got cautious not long ago if i recall a conversation we had? >> i will be happy to end the year kind of where we are right now, let the valuations. i kept saying that. that was 5% ago.
with interest rates where they are, use more debt than equity. to be fair there are excesses out there. there are some tech valuations out there where on gaap basis they're actually losing money. some companies making 1.66. charles: only purist genius use gaap. >> call me a wonk. charles: see you guys later. make sure you tune in tomorrow. we have the complete coverage of the fed rate decision at 2:00 p.m. eastern time followed by powell's news conference at 2:30. i am joined by superstar panel of neil cavuto, maria bartiromo, stu varney, lou dobbs. you do not want to miss that. china's economic growth slows to a near 30-year low. >> china reduced their currency, they devalued their currency. they're pumping money into the system in order to pay for it. they had the worst year in 27 years. they have had a terrible year because of the tariffs.
china is dying to make a deal with me but whether or not i will do it, it is up to me. it is not up to them. charles: so how will this rapid decline in china's economy, by the way including the loss of millions of jobs affect negotiations going on right now in shanghai? want to bring in former commerce deputy director chris garcia. chris, the chinese politburo met this morning. they're taking steps to sort of build a fortress if you will, harden their economy, acknowledging, there is acknowledgements the tariff war is taking a bite out of them including 2 million industrial jobs lost. >> the president is right. this deal will have to go through on his terms, on president trump's trade terms because for the last three decades is has gone through on china's trade terms. when we see this efebruary happened, this is what president trump was hoping for china to feel a little bit of short-term gain to ultimately have long-term gain for both sides of the table. this is president trump being
frustrated because he spent so much time building this relationship with president xi. he has been extremely, extremely respectful. he has allowed president xi to save face on many occasions. he equaled him a friend. so china pulls out of the agreement. where do we come back to the table? this deal ultimately has to go through on president trump's trade terms. that indicator out of china, is a good reason why we should keep the pressure on. charles: of course. now even president trump is saying perhaps china's just waiting. maybe they will play the waiting game. a lot of people thought that was the case for the midterms. they weren't as disasterous as most midterms for first term presidents. most say maybe china is waiting it out. president trump says even 2% chance a democrat will win, china will wait this out. >> that's right, charles. if you asked me a few weeks ago whether or not the china will kick the can down the road i would tell you china will kick the can down the road. china does not see the world the way the united states sees the world the not just because they
have a president for life, they don't have to have elections that keep them accountable, but they play this generational long run fame. they know if president trump has challenger, that will go easy on china, move jobs away from north america to the southeast asian region they will do that they will wait for a new president to relax pressure on china. the u.s. policy, pressure has to remain consistent across multiple administrations. we've seen senator schumer and elizabeth warren come out to say we need pressure on china. we need the coalition of the willing, not just between democrats and pubbes but our allies around the world. charles: we haven't really seen any democratic presidential candidates sound strong. the best they were elected they would keep in place while they looked at it. part of that is maybe gamesmanship, not giving president trump fighting a fight that multiple presidents should have taken up a long time ago. >> no question about it. we have to make sure china,
china understands one thing. that the united states has voluntarily given up its manufacturing base so that companies could make some short-term profits unfortunately that put us at a national security risk. not just about the supply chain. it is now about 5g. it is about technology. about whether these things will be manufactured in china with the potential of spyware, with the potential of actual theft of sensitive information from the united states. so that's why, you know, under any other administration, under any other president most negotiators would have crumbled. we have secretary mnuchin and ambassador robert lighthizer many who believe is the best negotiator in history, my former boss, wilbur ross, negotiating with fierce fervor to make sure china plays by the rules, we'll hold firm to keep china accountable that is the difference make, keep them accountable. charles: it is interesting, even this morning robert lighthizer made comment i think actually pressured the market before president trump even started
tweeting about this. he is hard. he is the person that they will have to overcome without a doubt. i do want to ask though you brought up the long game for china. we hear this a lot. i know china has this 100 year thing going. i think some of it is myth making to be frank. over the last 100 years they weren't always in control of their destiny. if it was part of a plan, maybe, maybe not. you know you've got these protests going on in hong kong. you've got a million muslims in reeducation camps, concentration camps for lack of a better word. a country want to be preeminent, the world's currency, you can't have all of that to be a bad actor at the same time. >> that is what china is most vulnerable with. they have many different bubbles forming on top of the human rights violations. you can't have always of those things happen not have a entire correction. in my opinion there will be a massive correction in china if they continue on this path. charles: real quick. we have comments from president
trump in a couple seconds. if the market were to turn lower, do you think the administration would get wobbly? >> not at all. one thing remains firm, president trump remains steadfast, hold the course, even though there is short term pain, he knows ultimately his base rallies behind him for the long term gain. charles: everyone is educated on the situation there is no way this administration could settle for any kind of deal that check as box? it will be scrutinized, so it is different than if they come up with a deal perhaps a year ago? >> longer we drag this out, charles, the more pain china will feel. the president's right. they want a deal more than we do. we have a phenomenal, phenomenal economy. we're roaring hot. i believe china knows that the united states will hold firm. they're just waiting for to us blink. fortunately for us we have a strong president, a strong negotiator. charles: chris, thank you very, very much. china's economy is under a lot of pressure. folks, let's go now to president
trump. >> so jamestown was amazing. i very much appreciate that the democrats were so respectful because it is what it is. it is a very important moment, 400 years. so i appreciate very much the democrats. we had great receptivity. i guess i saw you. you only covered the protests, the one protester. jamestown i thought was fantastic. it was treated really, and i have to, obviously thank the republicans but i also thank the democrats. we had one person the other than it was really fantastic. [reporters shouting questions] reporter: [inaudible]. >> well i know his son. i find his son to be outstanding. he is a brilliant, wonderful young man. i'm very happy he ap.ed him.
i think it's a great appointment. i know his son. that's probably why they did it. he is outstanding. i'm very happy with that appointment. reporter: [inaudible] >> no, i don't think it is nepotism. his son helped him very much in the campaign of the his son is outstanding. i think it's a great appointment. i didn't know that. reporter: [inaudible] >> what? reporter: [inaudible]. reaching out to the white house -- >> a lot of people. many, many people. you see it also in the press. you see it on watching television just coming back. people living in baltimore are very happy that i'm bringing out the fact that it is like living in hell. what do you want, john? reporter: [inaudible] reporter: [inaudible] >> no, the only problem, john,
you gave the protester 100% of the time and, i don't care about coverage. the last thing i need is coverage. hey, john, 100%. not one word of the speech. you know we were there about the speech. the protester didn't look so good to me. i will be very nice but you gave him 100%. you know what? that is okay. you often do that. that is okay. reporter: what political -- [inaudible]. >> what are you talking about by political strategy? are you talking about with respect to elijah cummings? reporter: [inaudible] >> there is no strategy. i have no strategy. there is zero strategy. all it is i'm pointing out facts. the most unsafe city in country, in our country is baltimore. it received as much money, it receives top of the line, billions of dollars. somebody said $15 billion over a
short period of time. all of this money goes there and take a look at it. i don't have to describe it. take a look at it. there is no strategy. it's a very simple. elijah cummings is in charge of it. he ought to take his oversight committee, park them in baltimore, find out what happened to the $15 billion, and a lot of other money. reporter: [inaudible]. >> we'll see what happens with china. i think we'll do very well with china. we're already doing very well with china. china has had the worst year they have had in 27 years. we're having the best year we ever had. the stock market hit an all-time high. we're doing the best we ever have done. all three indexes, if you look at it, indices or indexes, depending what you want to call. all three hitting brand new highs. we're doing the best we have ever done as a country. and, i'm very happy about it.
unemployment, best numbers we have ever had. by the way, african american unemployment, the lowest in history. criminal justice reform. obama couldn't do it. i got it done. he could not do it. he didn't even come close. that is great for the african american population who is very thankful about it. if you look at all of the opportunity zones, their inner-city opportunity zones, almost all of them. african-american, african-american people don't listen to fake news. they know what is going on. reporter: elijah cummings is not the mayor of baltimore and -- >> elijah cummings, i'm not angry. i'm just telling you the facts. i'm not angry at anybody. i'm just saying elijah cummings has been there for 26 years. he is really, by far the highest ranking politician. he has seen these mayors get thrown out, thrown out, thrown
out. they're all friends of his. the corruption and graft in baltimore is probably greatest in our country. or one of them. wait. he is in charge of an oversight committee. all i'm saying take your oversight committee, go to baltimore. you will learn a lot. [reporters shouting questions] reporter: [inaudible]. >> say it? reporter: what will you do on the -- [inaudible] >> we have a very good relationship with poland. i have a very good relationship with most countries, that the news doesn't like talking about. i have a very good relationship with poland. we've been invited by the leadership of poland i look forward to it. i like the people. i gave a speech in poland i which i know you don't like to say, but it was considered to be a great speech and the reason is i really feel strongly, i think poland, i think they are great
people. reporter: [inaudible] >> we're looking at it. we may go to denmark. we're looking at it. reporter: [inaudible] >> what? reporter: [inaudible] >> we we have not named the actg yet. we're happy with the fact that dan coats, i like dan. he is a friend of mine. i think he is a terrific person. i like him a lot. there really wasn't conflict. i think confusion than more conflict. dan made statements that were a little confused. dan is a friend of mine. he is a good man but i think john ratcliffe will do an incredible job. if he gets approved. he has to get approved. i think he will do a great job. we need somebody like that. we need somebody strong that can rein it in. because as i think you have all learned the intelligence agencies have run amok. they have run amok. [reporters shouting questions] reporter: you say you have done
more for african-americans than any other president. a new "qunnipiac poll" came out say greater percentage of blacks say you're racist? >> you know why. the fake news doesn't report it properly. people like you. fake news does not report it properly. if the news reported it the right way, instead after statement like you just made if the news reported it properly of all of the things i have done for african-americans, of all the things, that like criminal justice reform. that opportunity zones -- reporter: we talked about that. >> i think i do very well with the african-americans. i think i'm doing very well right now. frankly if i didn't do very well, relatively speaking, as a republican, i plane we should be way, way over50%. but if you look back over 40 years, it just doesn't work that way. if i didn't do well, relatively speaking i would not be president right now. but if you look what i have done for african-americans, it is
more than almost all presidents. reporter: talk with brazil. what is the -- [inaudible]. >> we have a good relationship with the president of brazil. i'm sure we'll be successful in trade talks. we'll have them. and i am just, you're just telling me his son was ap.ed ambassador. i think that is a great appointment. i know his son. i think he is really competent just like his father. he remind me of his father. i like his father. i think it's a great appointment. reporter: -- allowed to testify publicly? >> i leave that up to the senate. i'm a fan of general height. we'll see how it turns out. he has been accused. he is saying it's a false accusation. i hear they did a extensive report, very big, very important. i leave that up to the senators, they are very capable people. that includes democrats and
republicans. reporter: [inaudible]. >> you have to speak differently. you have a -- go ahead, speak up. reporter: presidency of china recently. >> yes. reporter: right now china economy is not doing great. >> i would say his economy is not doing well, china, but i like him a lot. that's what i say to him. reporter: [inaudible]. focus on elijah cummings and -- i just explained it. i explained it very simply. elijah cummings is, it was a horrible thing the way he spoke to the head of homeland security the other day. these people are working hard. they are getting no support from the democrats. the democrats refuse to fix the loopholes. they refuse to fix the asylum. those two things would make it 95% easier. instead i'm relying on mexico, has been great, but mexico has done far more than democrats v you know our numbers are way
down, which is a positive. numbers and apprehensions are way down. mexico now has 21,000 or approximately 21,000 soldiers on two borders. they have been great. i don't know that is going to stay. what we have to do is fix loopholes and democrats don't want -- the reason is, the democrat want open borders. the problem is, open borders mean tremendous crime. people coming in, you have no idea where they are coming from, who they are. i'm president. i can't allow that. [reporters shouting questions] reporter: congressman cummings -- charles: president trump answering a ray of questions. one that continues to come up is the controversy surrounding tweets and comment about baltimore. elijah cummings and calls that he may be a racist from many on the left and in the media. i want to bring in to discuss niece of martin luther king, jr., alveda king, who met with the president yesterday along
with several other inner-city pastors. always great to see you. >> hello, charles. yes i was with the president yesterday. there were 20 inner-city pastors and leaders. i'm a christian evangelist. we were talking about things that would make america even greater. it is great, so let's keep america great. of course the pro-life issue. civil rights, unborn, priests for life and opportunity zones he talked about. sba opportunity for people to begin to get their own businesses, that kinds of things. the african-american returning citizens. a large number of the criminal justice reform returnees i call them, are african-americans. that is just powerful. and giving families alternatives to killing babies and restoring families. the american king foundation, my god daughter and i working together to reunite families. there are some things, the hbcus, charles, you know there is a really large figure he has
given and released to the historically black colleges and universities. charles: right. >> a lot of people don't know that. charles: right. >> there are so many things have already been done. you remember what he said, what do we have to lose? what do we have to gain? i will show you i will make it happen. i will make it work. he has been doing things i will proving our community. charles: to that point president trump expressing frustration that the media won't report it. i had a bunch of people in my house, talked about the 3100 felons from the prison reform, talked about some of these things. you know a lot of black people are telling me they hadn't heard about this. the media sources won't report it. they certainly won't give president trump a lot of credit for it. i do want to circle, not specifically to the back and forth with president trump and elijah cummings, but for me, alveda, what you're doing, what hasn't happened, solutions. i'm so sick of the outrage. i'm so sick of deflecting.
don't tell me who to hate. tell me how to fix this problem because baltimore has a serious problem. you know, so far this year, here's the number, 118 blacks have been murdered in baltimore. zero asians. four whites, five hispanics. we have a serious problem in the inner cities. that's what we need, solution, don't we? >> we need solutions and what you just said, show me your faith and not your hate. that is the way i receive what you just said. don't show me your hate. give me solutions. each pastor and leader that spoke to president trump, we were loaded with solutions. president trump responds to solutions. that is what he does. he takes something, he sees a problem he begins to fix it. there were fixers at the table that were so powerful. he does have strong african-americans working with him right there, appointed as well. the fake news will tell you he doesn't even hire black people.
al sharpton, he hates, has an aversion to black people. calling him president racist for example. president trump says, even when he was candidate trump we all bleed the same. he said that in his inaugural speech. he see sees everybody as human beings. we are human. we can work together. somebody asked him a question, dr. secretary ben carson he asked the president, he said if representative cummings would come to the table would you work with him? he said sure i would. he doesn't hate anybody. he is not really mad with anybody. he wants solutions. charles: maybe we'll one day get washington, d.c., where it is not about political games, it is not about making other people hate others, perhaps solutions. ironically why we send them there in the first place. always a pleasure to have these conversations. >> thank you so much. charles: massive data breach at capital one. amazon cloud at the heart of the attack. we have details at the break.
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♪ charles: capital one shares diving this afternoon. this as they face their first class-action lawsuit over a massive data breach. customers now left asking, who is in your wallet? after a hacker compromised more than 100 million accounts and applications. fox business news reporter grady trimble. welcome to the show. >> you took the joke i was going to use, who is in your wallet. in all seriousness it's a big mess. 100 million people in the united states target of this attack, six million more in canada. we're talking about addresses, dates of birth, some people bank account information and others social security numbers. charles: 100,000 social security numbers. we put everything on an application. >> that is what capital one did apparently. all of this information was stored on amazon web services which is a cloud service.
the hacker, alleged hacker, worked for amazon previously. knew how the system worked. got into it. it seems like a one-off right now. none of the information was used for anything malicious or fraudulent or even shared yet. charles: yet, i'm glad you said yet. we see companies trying to get out in front of this stuff, they put out statements and turns out there was some motivation. would be finding out, wouldn't be surprised if there was a monetary motivation. most importantly, everything, our life is on the cloud. everything we do is about the cloud. this stock market rally is about the cloud. can we trust it? >> amazon web services says that their systems worked as they're designed to. they weren't compromised. charles: right. we have to redesign them. >> maybe hiring processes are an issue, if they had some unemployed later. charles: grady, one person able to do this, with some knowledge of how amazon web services
works, that's something frightening. they have to put something, some safeguards. >> you would think so. i couldn't do it. i don't have the skillset. a lot of software engineers probably do. it is not as hard especially if you have inside information and know how the process works. charles: capitol one is down, coming back a little bit. amazon is down. they may be able to weather the storm more than capital one. the new part of this story is the cloud is part of the risk and i don't think we saw that coming. >> a lot of people, if you're even not on amazon's cloud, you're on apple's cloud, google's cloud. everyone has their own version of a cloud service. it is not just amazon's should be under scrutiny because of this. charles: we appreciate it, grady. see you real soon. welcome to the seem. colleges are so expensive that some wealthy parents are giving up custody of their cuds to get a better deal. apple shares were falling before the earnings release. actually they're now higher. what congress is doing to try to
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don't wait. get started today. to learn more about the range of aarp medicare supplement plans and their rates, call or go online today to request your free decision guide. oh, and happy birthday... or retirement... in advance. charles: apple reports their highly anticipated earnings after the bell. it will look at our trade situation in china, give as you glimpse there, more importantly can they prove they're more than a smartphone company. we have a business professor. apple a lot of expectations. they can tell us what is going on around the world. can tell us about innovation. what is important to look for?
>> apple is trading on discount and their p-e ratio was not as fantastic as amazon or google. innovation coming out is primarily increment. it is tied with the iphone, everything they do, trying to increase the market share of the iphone at this stage. charles: a couple quarters ago they stopped breaking out iphone sales. that scared the heck out of wall street. >> right. charles: that is one reason it trades at a massive discount. the question, not only about the iphone what are they doing about the iphone? is there enough innovation to validate a trillion dollar company? >> that is the crux of the company. they always have different businesses, amazon, has amazon cloud you just cover but looking at apple is mainly to be almost a one device company and that becomes really tough to justify to justify the almost trillion dollar valuation going forward.
charles: china, sales were down 25% in china. not necessarily disasterous per se. tim cook walk ad thin line with china and president trump, trying to deal with both sides, what have you learned about that. >> that's a big mess. when i speak to executives doing business in china they tell me the supply chain is in chaos. but more importantly the competition. huawei, they're closing in on in terms of the performance gap. ed advantage traditionally apple has even within the chinese market is eroding. >> huawei posted a amazing earnings report last night considering the tariffs and everything, but price point also is an issue. they make a much cheaper version of a smartphone. is the chinese, american consumer continuing to pay up for the i phones? >> absolutely. if you look at feature by feature, that underscores why apple is trying to acquire intel modem on five g operation within
apple. because huawei launching that irown 5g phone last week. apple needs to set aning a agressive time frame in order to play the catch-up game. charles: last five times they reported. next day was up 5%, 7%, down 7%, down 6%, up 4%. low expectations not always hurting the stock. howard, always appreciate it. >> great to be here. charles: republican senator josh hawley releasing a bill to curb social media addiction. he targets deceptive techniques. they use these to exploit to keep you hooked. he says big tech embrace ad model of addiction. too much innovation in this space is designed not to create better products but to capture more attention using psychological tricks that make it difficult to look away. trend macro cio don luskin. before we start, my wife teaches sunday school. she is mentoring a young lady, 11 or 12.
last night she said she is addicted to ticktock because it has scrolling feature. she stays up late as three in the morning 4:00 in the morning. isn't that deliberately designed to do that and isn't there something wrong with that? >> is there something wrong with competition? is there something wrong creating a product people want to use? addictive products are old as time. go back a century to the writings of charles dickens, i'm sure we are happy to have little girl read. all the works were published as suspenseful serials as cliffhangers, so you are addicted to come back to the newspaper to read next one. that doesn't bother me. a 2-year-old, 3-year-old, 4-year-old, missing out on critical years. when you have a developmental window, play well with people, body in space, have the phone in space, you're not learning to deal with people in the real
world or use your bodies. you're missing important cognitive development. once you're a teenager it can open the whole world to you. maybe it's a good thing? charles: what is the good thing, the cell phone part, addiction part or the iphone part? these kids, as young as 3 years old, 4 years old, 5 years old watching youtubes. none have playing as they are back in the day. the critics say that is by design and if we don't wake up we'll lose out as society? >> not just us as society but us as a planet. that is happening everywhere. like a lot of things in life there are perfectly fine for young adults and adults. they are perfectly not fine for young children. young children are special. i don't think we can pass laws aimed at twitter and facebook to protect our 4-year-olds. i think that is the job of parents. the u.s. congress has always been very, have he bad.
any new technology, like books, fire, like television, like cars, the older generation says oh, my god, it will ruin our children, it will ruin our society, it ends up transforming your society f you're addicted as an adult for it to be the way it was when you were a young person, i'm afraid you will get disappointed. some of us call that progress. charles: all right, don. i didn't know you would bring. thank you. >> thank you. >> after the scandal rocked this country, wealthy parents are gaming the system for more financial aid, by giving up guardianship for their own children. we have more on the shocking story next. ♪
charles: always gaming the system. check out this loophole. according to "the wall street journal" the education department is investigating wealthy parents giving up custody of their own children to relatives, friends, in some cases even coworkers. all of this in order for that child to qualify for scholarships and other grants. by the way it's legal. i want to bring in turning point usa president and ceo charlie kirk. chicago goes really in depth, so does "propublica." with the idea these are wealthy families, with lawyers, doctors, real estate agents, insurance executives, school superintendents, they have found
loopholes, taking advantage of it and i guess the gist of deserving kids are not getting benefits. >> you see this with some of the money that went towards urban renewal over last 30 or who years, the money we thought would rebuild urban cities and winds up going into construction companies not to people that need it. this should sound the alarm as a culture, does going to four year college really mather much, charles? that you have to give up your custody of your children to get a better deal to go to four year college? what i find though, upper middle class and wealthy families, their entire identity whether or not they themselves were successful parents is whether they're kids go to the best and most elite schools in the country. that is just wrong. the idea that you have to go to the best four-year schools in america, to succeed is not true at all. you see these families gaming
the system like you saw in the doj slew of indictments last month. now you see this. i can't, who thought of this? who does this? you give up custody of your children just to get a better financial aid deal. charles: apparently one law firm is representing 20 cases. we'll see if we can reach out to them, get more details on that but to your point a great article on sunday, 70,000-dollar a year liberal arts college just won't die. granted if you get the state to pay for it, maybe the kid can get a 70,000-dollar a year college degree? in liberal arts. can't find a job. >> underwater basket weaving or eastern 14th century medieval history or something bizarre that i guess you could, you might need for certification but the not for actually education or job preparation, but, charles, this is the reason why tuition is going up. because the colleges getting blank checks from the federal government to subsidize the
meaningless asset if people were paying cash for the asset or bargaining, going through the price system or through a market, there is no -- it is not sustainable. but when you have a third party involved, you see this in health care, you see it in college, things are worth less but they cost more, when a third particularly with the federal government, 99% of all student loans are given out by the federal government. you have no price civil. no position to bargain for a better price. charles: charlie kirk, appreciate it. >> thank you, charles. charles: president trump will watch the next round of democratic debate that kick off in detroit. we'll have a live preview of them next. ♪ >> i think right now, i am watching. i think right now it will be "sleepy" joe, i think. i feel he will limp across the line. that's what i think. so what i think doesn't mean anything but, i know the other people. i know him. i think he is off his game by a lot. but i think personally, it will
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charles: all right, the second round of the democratic debates are going to kick off tonight in detroit. for most of the candidates, it will be the last chance for them to make their case to a national audience. tonight you've got ten that will once again balance the attack with going after president trump but more than likely, the eye of the storm will be joe biden. of course, he will have to present his own vision as well and do much better than he did the first time around. joining me to discuss, fox news contribu contributor and host of the rick unger show. the first round, the first two nights were really great. i mean, i don't know if we answered a lot but it was fantastic theater. joe biden was off his game. everyone is gog to ing to be wag to see if he can rebound. >> that will be tomorrow night
and it will be fascinating. tonight, you have the two people vying for control of the progressive track. you have elizabeth warren and bernie sanders. here's the question. they kind of seem to have a pact that they won't go after each other. does that pact live through the evening, i wonder. you've got that happening and then you have everybody else. you said it in your intro. this will be their last chance because this is going to be their last chance. most of the candidates will not be there in september. charles: the gloves are coming off, probably. although eric swalwell was probably one of the most combative last time and it didn't help him out. i'm not sure anything could have helped him. what do you think tonight? and tomorrow night? how do you see this going? >> a couple things. obviously we want to see biden, if he will pull it together, be more prepared or will this be a nighttime version of last week's mueller hearings with biden being underfocused and all that other stuff. charles: he will call his own time. >> exactly.
right. yeah. one interesting change, cnn apparently will not do any raise your hands if you agree with this statement question anymore. it's probably a big relief to the candidates. i always thought those questions were very helpful and allowed voters and people like us to look and see who believes what and so on. charles: after the first round, kamala harris shot up in the polls, so did elizabeth warren. they kind of settled back down. the numbers or the positioning is just about where it was. how do they move this needle this time? how do these candidates, you know, move the needle without really going hard, and i'm saying going hard again, i have to say i think they have to go hard against biden. >> no question about it. you can't really move the needle. you take joe biden's numbers, you can take everybody below him and add them up and they're not as good. they are going to have to go after him tomorrow night, as i put it, it's going to be joe versus the volcano. everybody is coming for joe. it's going to be a question of how does he hold up. if he performs like he did last time, it's not going to be very good. i think he will be better.
charles: president trump said he thinks joe biden will be the candidate, called him "sleepy" joe and said he will probably limp across the finish line. these are grueling processes. more recently, you do kind of limp no matter who you are. how much do you think president trump is going to be brought up tonight and tomorrow night? >> they will talk about him nonstop, especially with don lemon on the panel. i think what don lemon is going to do -- charles: he will bait them? >> trump is a racist, trump is a racist. he will say that over and over again. charles: unless one of them says i don't think he's a racist, but. >> yeah, i think that's not very likely. >> i hope you're right. i hope there is a lot of talk about trump tonight. i have a feeling there may not be. again, i'm going to go back to what you said. this is the last chance for most of these candidates, and they know they are not going to be able to make the case against trump and suddenly shoot up in the numbers. they have to say something or do something that is going to get the attention of democrats. charles: they all have a version
of medicare for all. >> it's gotten very hard. what's fascinating, what we are really looking at, look at the polls. you have the progressive track and you have the moderate track. which one is clearly in the lead, the moderate track, which is going to make it very hard for our friends around here at fox news to keep saying we are all socialists because the democrats are leaning in the moderate direction. charles: i think the voters will help us out. >> overall you are seeing the polls are leaning significantly more towards biden who is left but not super far left. but i think the energy of the party and the people who speak up the most, the folks who get the most attention are the folks on the far left. >> you may be right about that but they're not the voters. charles: coming into the process, we were told this was going to be the democratic party that was hip, young, woke, and it's still two old white guys at the top of the ticket. >> you got a problem with that? charles: the democratic party
sort of telegraphed that wasn't going to be the case. >> well, you know what, it is what it is. i don't know that the democrats were selling that message so much as maybe democrats' opponents were trying to sell it. charles: thank you both very much. the dow up 31 points. holding steady. liz claman, waiting for the apple earnings. liz: we call it the company known as one of the biggest market drivers of all, right. charles: absolutely. no doubt about it. liz: it's preparing to unleash its latest results in t-minus 90 minutes. apple shares right now straddling the line. they have been slightly down, slightly up and right now, barely down. just by 18 cents. what are we looking for here? what will they say about the 5g upgrade cycle for your iphone? tariff disputes? services, a new shiny credit card and the coming content push that will solidly land the i-empire in the middle of stream's royal rumble. our all-star panel is gaming out the number one metric that should be moving your fingers to the