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The Dow Jones Down 486 points; Jeb Bush on the Border in McAllen, Texas. Aired 3:30-4p ET

Aired August 24, 2015 - 15:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[15:30:00] BUCK SEXTON, CNN POLITICAL COMMENTATOR: I think Hillary Clinton makes them one nervous, assuming what is going on right now doesn't actually coming to anything. Meaning that assuming that the emails as they are going through all of this they don't have classified material that somehow it seeps into the American consciousness that this was a reckless and irresponsible thing, if not a criminal thing.

I also believe the Clinton foundation as may be exposed those emails could become to be an issue. Joe Biden there is a heat shield. He is there, if he gets in, as somebody who will take away criticism and media focus on Hillary, so she can get the machinery going. But Clinton I think is still the bigger threat.

MARGARET HOOVER, CNN POLITICAL COMMENTATOR: When you think about the most people who are tuning in right now are people like us. They are sick in the head. They are junkies. They are paying attention to politics. They are not normal, ordinary American. They are not people that you and I respect. OK?

(CROSSTALK)

HOOVER: But most people will tune in six weeks before the election or so and they are going to think, OK, who is running? Oh, the first woman. The first woman. An historic candidacy and another white guy who is a Republican. But truly, I think that some of these things that we don't think about in terms of the nitty gritty in the politics, actually, a historic value of that candidacy I think at the end of the day there's a huge amount of weight and Republicans are more worried about.

BROOKE BALDWIN, CNN HOST: OK. Answer to both of you, Hillary Clinton.

Buck Sexton, Margaret Hoover, thank you, guys, very much.

SEXTON: Than you.

BALDWIN: Straight ahead, we are watching the markets very, very closely here after a major, major plummet this morning. The Dow is still down, down 670-some points. Coming up, we will talk to Shark investor Kevin O'Leary and what it means for your money.

Plus, the American heroes who took down a gunman, in their own words, how they describe the moment. He walked into the train, hold it a gun, and how they decided to rush him.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He basically came in and we entered the car and saw him with the ak-47. So at that time, it was either do something or die.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[15:35:13] BALDWIN: We are just a couple of minutes away from the end of one of the most devastating days in the market in recent years. One thousand-point dive at the Dow's open this morning has turned into somewhat of a rebound. Guys, these are not live pictures right? This is from this morning, correct? OK.

Still now, though, you can see it's down 583 points right now. All in the red all day long. The ups and downs, investigators globally really captivated by the plunge that began in China, the second largest economy, second only to us here in the United States, spurred this worldwide selloff. 401(k), gas prices, all of this writing on the ball to market. And of course, what happens in the next it 24 minutes up until that "closing bell."

Let me bring in someone who can put all of this into context for us, so-called Mr. Wonderful, he is Kevin O'Leary, an investor from ABC "Shark Tank" and also the founder of the investment fund company, O'Leary Funds.

So Kevin, Mr. Wonderful, if I may, you know, listen, we all watched what happened, the precipitous drop in the first couple of minutes this morning and, of course, what happened is we ended our week on Friday. Can you explain to me why this is happening?

KEVIN O'LEARY, INVESTOR FROM ABC'S SHARK TANK: Well, the best way to look at it is from a very simple basis. Here's what is going on. First of all, our stock market hasn't had a correction in over four years and that's really unusual because generally it has 10 percent correction every 12 to 18 months. So you sound perspective with the day one who are certainly getting it. And every correction has a different personality.

Here's the personality of this one. You know, when you buy a stock, you're buying the future earnings, the cash earnings of a company that you like. And the market decides how many times the multiples you're going to pay. If the company is growing very quickly, you're going to pay more. Let's say 20 times, 20 years' worth of earnings you're going to pay for that stock because it's doing a great job growing.

Now, here's what happened to us. Today in America our biggest companies have almost half their sales in the Asian markets. So while we don't feel good about the American growth, it's not growing that much right now. Let's say three percent at best, we feel great about our companies that are selling at 40 and 50 percent of their goods and services to Asian countries sort of growing eight and 10 percent, like China.

We wake up last week and find out that China is not growing at eight percent or even 10 percent. Maybe it's going to grow at five percent and we have a heart attack. That's exactly what is happening. We're re-pricing the value of our companies based on a concern that they are not going to get the growth we all thought they were. It's a healthy thing. It's not the end of the free world but it is painful while it happens.

BALDWIN: Hang on, hang on. You said heart attack and healthy in the same sentence and I'm sort of - I'm plummet a little bit by that. Because many people, yes, are having a heart attack when they look at these numbers and they are not maybe as knowledgeable as someone like you. How do we get back to steadier, healthier numbers?

O'LEARY: Well, I use that analogy because after you have a heart attack and you survive it, you stop eating bad food. You eat healthy again. You don't eat fatty foods.

BALDWIN: Right.

O'LEARY: And maybe what that means in the stock market is, you don't buy expensive stocks. You don't buy speculative stocks. You buy stocks as I do, I have learned over the years that I only pay stocks that pay dividends because they are less volatile and I get a check from them every quarter and that makes me feel warm and fuzzy.

And you know, when I watch these volatile days, I try and nibble on the stocks I like and they all pay dividends. So no matter what their prices tomorrow morning, I'm still going to get a check in 90 days if it's a good company.

But that's the debate Americans are having with the stock market. What is the growth going to be and we don't want to pay as much as we did last week. And so, when will this route end? I can't tell you yet, but I promise you it will and these are great companies and you shouldn't really be that concerned. If you own a great company that hey as dividend, sit tight. Wait for your check every quarter. That's what I do.

[15:40:20] BALDWIN: Warm and fuzzy. And don't look at your 401(k) today. I'm closing my eyes on that one. I just closed. But hopefully all it even at the end.

Kevin O'Leary, thank you so much. I really appreciate it.

And as we mentioned a moment ago, Jeb Bush at the border, not on the border but near the border, in McAllen, Texas. Here he is.

JEB BUSH (R), PRESIDENTIAL CANDIDATE: We have loop hole on the law in effect that was passed a few years ago. And I think that creating a healthy deterrent effect to be able to make sure that these particularly young kids don't cross all the way through Mexico to come to be processed into our country, it's just completely inappropriate. There are examples of doing it the right way where you create an effect where people's lives are not in jeopardy. So I learned a lot. And it validates my belief that we need to have a comprehensive strategy to deal with border security you need to the circumstance of each part of our basic region that is impacted by this. With that, welcome. Happy to answer any questions.

(SPEAKING IN FOREIGN LANGUAGE)

UNIDENTIFIED FEMALE REPORTER: You mentioned that Donald Trump this morning said you would come here and you would learn that illegal immigration is not an act of (INAUDIBLE). What do you say?

BUSH: Well, what I say that Mr. Trump's plans are not ground in concern and principles. It would cost hundreds of billions of dollars. It's not realistic. It won't be implemented. And we need border security to be able to deal with getting this country back on track. So I'm not going to get into the issues of what he said and I said.

The simple fact is, his proposal is unrealistic. It will cost hundreds of billions of dollars. It will violate people's civil liberties. It will create friction with our third largest trading partner that is not necessary. And I think he is wrong about this. And if he was interested in a comprehensive approach he may want to read my book "Immigration Wars" which I wrote four years ago. I welcome Mr. Trump into the debate. I think that's great. He's a serious, you know, he is a serious candidate and he ought to be held to what serious candidates need to be held to, he needs to be accounted for his views.

(SPEAKING IN FOREIGN LANGUAGE)

BALDWIN: All right. So we're going to go. But Jeb Bush there speaking live there at McAllen, Texas. And quickly, very fiery, speaking about his opponent and Donald Trump. He took a swipe at him this morning knowing he was going to the border area somewhere were Donald Trump has been a couple of weeks ago. And obviously, he said, listen, he needs to read my book. I mean, he is someone who wrote a book on immigration.

Margaret Hoover was just sitting next to me talking about that with Buck Sexton. And he says that Rump's plan are not grounded and conservative principles. And that if you would go with Trump's plan - OK, I'm being told to stay with it. Let's go back.

UNIDENTIFIED MALE REPORTER: (SPEAKING IN SPANISH)

BUSH: (SPEAKING IN SPANISH)

UNIDENTIFIED MALE REPORTER: (SPEAKING IN SPANISH)

BUSH: (SPEAKING IN SPANISH)

UNIDENTIFIED MALE REPORTER: (SPEAKING IN SPANISH)

BUSH: (SPEAKING IN SPANISH)

UNIDENTIFIED MALE REPORTER: What about this region, what is it that you're -

BUSH: Look, I spent a lot of time here growing up. It's a beautiful part of the country. People may not remember, but I was born in midland and grew up in Houston. I came here a lot. Came here campaigning for my dad, for my brother. I love the valley. So I'm excited to be here. We're going to campaign hard. On March 1st you have the Texas primary. My intention is to win the Texas primary, just in case anybody is curious about it.

(APPLAUSE)

[15:45:24] UNIDENTIFIED FEMALE REPORTER: (INAUDIBLE).

BUSH: Excuse me?

UNIDENTIFIED FEMALE REPORTER: Do you worry that the term anchor baby could affect --

BUSH: No. Look. No, look. As I said in Spanish, my background, my life, the fact that I'm immersed in the immigrant experience, this is ludicrous for the Clinton campaign and others to suggest that somehow - somehow, I'm using a derogatory term. What I was talking about was the specific case of fraud being committed where there's organized efforts and, frankly, it's more related to Asian people, coming into our country, having children in that organized efforts, taking advantage of a noble concept with this birthright citizenship.

I support the 14th amendment. Nothing about what I have said is should be derogatory towards immigrants at all. This is all how politics plays. And by the way, I think we need to take a step back and chill out a little bit as it relates to the political correctness that somehow you have to be scolded every time you say something. It's not fair to be taken out of context. That's the nature of politics, but I don't think this is appropriate. One more.

UNIDENTIFIED MALE REPORTER: What if people continue to stick to that term, anchor babies?

BUSH: I just said that I was focusing on a specific, targeted kind of case where people are organizing to bring pregnant women into the country, where they are having children, for their children to become citizens. That's fraud and that's what we need to do. We need to enforce the law. We need to create a more secure border, not just at the border but across the spectrum.

I mean, there are 40 percent of the people that come here, that are here illegally today came with a legal visa. Enforcing the immigration laws of our country needs to be a high priority. And once you have -- how do you do it? You put more resources to --

UNIDENTIFIED MALE REPORTER: How would you refer to this issue?

BUSH: You know, this is so ridiculous. Give me the name you want me to use and I'll use it, how about that?

(INAUDIBLE) BUSH: Yes, that's exactly what I was focused on.

UNIDENTIFIED MALE REPORTER: (SPEAKING IN SPANISH)

BUSH: (SPEAKING IN SPANISH)

UNIDENTIFIED MALE REPORTER: (SPEAKING IN SPANISH)

BUSH: (SPEAKING IN SPANISH)

UNIDENTIFIED MALE: Thanks, everybody.

BUSH: Thank you.

UNIDENTIFIED MALE REPORTER: What is your campaign doing with a more comprehensive --?

BUSH: Look, I have set plans. I wrote a book about this called "Immigration Wars." I have a complete, comprehensive plan that I laid out. I must stay focus on that. What we need to be focusing on is how do we fix these broken things in Washington, D.C., rather than talk about how bad things are. We need to start fix how we tat, how we regulate, fix the broken immigration system, both the illegal side and the legal side are broken, embrace the energy revolution to create high wage jobs. These are the things that matter. And I have proven leadership skills to make it happen. And now, I'm going to say hello to people --

As a high school student I'd like to ask a question that refers to us. How do you feel about college costs? Are they do high and how do you lower the price so middle class family students can go?

UNIDENTIFIED MALE REPORTER: (INAUDIBLE)

BUSH: Absolutely costs are too high. And basically, what we created is a system of tuition cost that grow faster than any form of inflation, healthcare or regular inflation far faster. And the inefficiencies of our higher education system are passed on with recourse debt effectively for students.

I think the universities need to have skin in the game. If kids can't graduate with a four-year degree in four years, there ought to be some payback to their families or to them or there would be some support for the loans they have taken out.

I think we ought to be making sure that you can get a four-year degree done in four years. There are great programs around the country. One of the ones that I most admire is a project of a plan called Tennessee promise where every child that participates, a student participates and it gets their college education done, community college, the first two years got free, free of tuition. It requires mentors, it requires personal responsibility on behalf of the student and in doing that, that's the kind of approach we need. We need more kids graduating with degrees of purpose and so that they can get a job and live an independent life. Thank you, guys. [15:50:05] BALDWIN: Fiery responses there. He was speaking back and

forth, Jeb Bush alternating between English and Spanish on those recently there, really sort of coming back and defending. He's really been slammed by Democrats, particularly Hillary Clinton, on his usage of the term anchor babies, alluding to women who come across the border illegally and have children who therefore become American citizens saying yes, in some case, that was fraud, defending his usage there.

And before he was speaking in Spanish, kept saying he was (INAUDIBLE) which is proud in Spanish, he is proud if his heritage. He's proud of marrying a woman from Mexico. He is proud of his family. Got a huge, huge applause, Jeb Bush there along the U.S.-Mexico border in McAllen, Texas today.

A quick break. We're back, ten minutes to go at the end of this incredibly volatile trading day. We'll check in with those markets after this break.

(COMMERCIAL BREAK)

[15:55:02] BALDWIN: Five minutes away from that closing bell after really an extraordinary up in the day. A precipitous plunge in the first couple of minutes, the Dow Jones industrial up this morning, down 1,000 points at one point in time. Now it's hovering around the 400 mark here, trying to recover all day.

Let's go to our money correspondent Cristina Alesci who is there on the floor of the New York stock exchange.

I mean, it's been going up and down, up and down, really these past minutes really have been crucial before that closing bell. What's the feel right now on the floor?

CRISTINA ALESCI, CNN CORRESPONDENT: It is tense. In fact I tried to talk to a few traders that I talked to earlier today, and they said, just back away, we're trying to get through the close.

BALDWIN: Wow.

ALESCI: That's what's going on right now. Of course, all of this is tied to these global economic slowdown, specifically China. One trader here office said there's a complete loss of confidence in China, not just from an economic driver standpoint and the growth potential out of that country, but also people are also starting to question the data coming out of that country, the economic data, whether investors should be really focused on the data at all.

You heard it in the White House questions about that in the White House press conference earlier today. So these are questions that haven't been raised in a while. Of course, we know that China stock market crashed, but these kinds of big picture questions about the Chinese economy are really bubbling up at this point.

We don't know the answer to that, but we do know two things. One, volatility is back in the market. That means this seesaw, these swings will be here for a while. That's because, number two, the market is trying to find a bottom, the lowest price, right? And we haven't found that bottom yet, according to the traders on this floor, according to investors. They still don't know how to price this volatility around the world into the U.S. market. We'll have to see what happens over the next day. And we are going be playing close attention to what happens in Asia tonight.

BALDWIN: We'll be watching tonight. We will be with you through the rest of the week,

Cristina Alesci, thank you so much.

I'm going to say good-bye couple of minutes early, because my colleague John Berman who is in for Jake Tapper is live at the New York stock exchange, with "the LEAD," which starts right now.

ANNOUNCER: This is CNN breaking news.

JOHN BERMAN, CNN CORRESPONDENT: All right. I'm John Berman on the floor of the New York stock exchange. People have not been want watching this space this closely since 2008. And that, my friends is not a good thing.

People here on this floor right now, people around the world asking this frank question -- what the hell just happened? Because this morning, when the stock market opened, it fell 1,000 points in less than ten minutes. Right now, we're about three minutes away from the closing bell and the market is down about 486 points. What will happen in the next two minutes? We simply do not know. The market has never fallen that far that fast in one trading session, not ever.

Joining me right now, CNN's chief business correspondent, my morning partner Christine Romans.

Well, the question is, what a day. Have you ever seen anything like this? And is there a big why? Why?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Well, I've never seen anything like it, first of all. And you've never seen anything like that kind of decline so quickly on the opening bell. That many stocks, household name stocks that fell so sharply. And then, John, a recovery, an 800-point bounce off the lows that was really astonishing, and as violent in the assent as it was in the descent.

The why, is China. China is the indicate list here. The Chinese economy is slowing quickly. There's concerns about a hard landing, its stock market bubble has popped. As everyone with exposure to China, everyone with exposure to commodities that you sell to China for the economic miracle factor, you know, machine of the past 20 years, big concerns about that slowdown as how it will - they ripple effect everyone.

BERMAN: If people are thinking some are burp, some bad summer day in the heat when there isn't much trading, no. That's not what's happening today. We felt 500 points on Friday, and then this morning you saw the 1,000-point dip with the 800-point rise. And now back down 537 points. There are some serious concerns here, as we're now one minute away from the closing bell.

ROMANS: We are one minute away from the closing bell. We've been talking to a lot of folks looking here who are looking at the orders as they are coming in. And they are worried about the sell order on the close on Friday. There was a lot of selling very late on Friday that, of course, once the market closes, it's the weekend, they couldn't get it done. And that's what you saw on the opening bell this morning. So they are watching this great worry interpretation (ph) about the closing bell. There's always a possibility to see buyers come in and go, who see this kind of downdraft, and things that's 15,886 in Dow, that's a place to buy. A lot of global concerns, though.

BERMAN: Yes. We are officially in a correction. This is a market correction. That has been a drop of more than 10 percent. We're not in the bear market. That would be 20 percent. A lot further to go on that. You're hearing the clapping here at the New York stock exchange. They have to clap. Believe me, there is no joy behind this applause right now. Not here. Not today.

ROMANS: Let's take a few minutes to settle the closing time. So we are going to hear this bell and we are going to see - we are going to hear the marker tick around here, trying to find its footing (ph) on the close.