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tv   Cavuto Coast to Coast  FOX Business  March 28, 2024 12:00pm-1:00pm EDT

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always -- crypto was seen as a place that was not overly regulated, but you could argue that sbf but you could argue spf was the face of what could happen under that scenario and now that this is behind us, barring an appeal and so on, for the crypto industry, it moved on and strongly. >> reporter: that's the point i was trying to make earlier. spf is 32 years old and the judge said he knew what he did was wrong, he knew it was criminal, he regrets that he made a very bad but about the likelihood of getting caught and he got caught and surveying 25 years, he will try to get a count to 61/2 but -- ashley: we've got to go. coast-to-coast begins right now. neil: the crypto king is going
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for jail and if prosecutors have their way of that sentence stands, 25 years. it's a long time, he may not serve all of that. he is 32, that will put them up to late 40s early 50s before he does get out from behind bars, all this for his role in the biggest scandal ever to involve the crypto arena. it cost about $10 billion when all is said and done. where the money is and whether those who lost it can never get it back is stuff or another day. this days the fact that this guy is going to be in jail for a long time, 7 counts of fraud and conspiracy related to these charges and he tried to dupe investors and succeeded at it. let's get the latest from kelly o'grady outside the courthouse. what is going on now? >> reporter: 25 years for someone who is 32, that certainly sends a message to
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the crypto community and that's the thing widths sentencing, not only to deter the defendant from doing some like that in the future but to deter society, deter the crypto industry, anyone thinking of committing this type of fraud. to give you a little bit of color from inside the courtroom of how he got there today, when the judge gave that sentence, he said that he tried to pitch himself as the good guy of crypto and he said, quote, that was a lie. he wasn't buying any of the arguments we heard from the defense today. they shared it should only be 5 to 6. 5 years because there were no victims, the bankruptcy process is intending to give that money back to the victims but at the value crypto was in november 2022, bitcoin, the other thing that was surprising was sam bankman-fried spoke again, a risky decision based on how he performed during the trial, the proverbial nail in
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his coffin on that conviction, he said he was sorry, he did not admit responsibility. that is important because to your point he is intending to appeal not only the sentencing but also the conviction in general. the real moment we are waiting for was judge kaplan to give his sentence. he was a star in the trial before he made any ability to hide how he felt about sam bankman-fried, today was no different, he said i understand you have some issues communicating, may even have autism, but he's incredibly young, this was a serious crime and there needs to be a serious punishment. he gave that 25 year sentence. we know going forward he will appeal. we expect some pressers but zoom out, this was such a moment for the crypto industry, coming to a full close here. we've seen crypto skyrocket.
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i wonder if this sentence, this conviction, the fact that a bad actor is being put away, if this does send a message to the crypto community, we are making things safer, in, we will see what happens with bitcoin today but certainly it's been on a run. i will send it back to you. neil: mentioned the prospect of appealing and where that stands but given the severity of the sentence, it's not as far as the judge could have had it go, makes you wonder what chances he would have. >> absolutely. a question i've been thinking about myself. when you have that 25 year sentence come down it is supplemental. for folks watching at home they are going 110, how could he not have gotten that? bernie madoff got over one hundred years, that was for someone who was at the end of their life. when you think of sentencing you think about the possibility of revocation or remorse, to to
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good in society going forward but even though they are going to appeal, he fired the folks that got connected to conviction, you have to sit here and wonder everyone is going to be watching. hard to come in as a juror without an idea what would be a new judge but does not indicate good head wind going forward with that appeal. neil: going back to kelly o'grady. charlie gasparino, the former us attorney, i begin with you, the prosecution had argued here that this had to be a stiff sentence, they argued constantly there was the risk of committing more crimes, to quote us attorney nicholas roos. mr. bankman-fried thought circumstances would justify it. does this alleviate that?
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>> hate to be the hard-nosed prosecutor but i am disappointed with of the sentence which i'm almost shocked with the sentence. it's a long sentence but when you look at the net, what he will actually do, for a multi-billion-dollar fraud, he is going to do about 15 years, maybe a little less. i don't see it. i think the sentence should have been away closer to 40 or 50 that the government asks for in the case to judge kaplan. neil: the president sentence is served, bernie madoff, to 150 years. tyco up to 25 years.
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and ibu leave. the more time we have to pay that for investors. what do you make of it. >> the bankruptcy situation his name escapes me. and and the crypto community. this is a garden-variety theft. bernie madoff did it and others do it. it is securities fraud. when you commit this type of securities fraud, for as much
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as he's doing, and this is -- almost, he and his family. he's really a good guy who wants to do good. he's it -- okay to do steel if you want to do good. your whole approach to this was laughable and it marked the justice system. whether the sentence was accurate or not, 25 years in jail is not life, he's going to get out when he's 45 and may serve 50. bottom line, sam bankman-fried won't come out and start another crypto exchange. know it will give them their money and if they do they are crazy and deserve what they get. this is kind of like in that
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wheelhouse where it's somewhat justified. people get most of their money back. he's going to jail for fraud for something serious and it's a long time in jail. no one deals with him anymore. i remember the martha stewart sentencing at the judge in that case to remove the fraud. it's a good thing. martha stewart went to jail for something kind of stupid for 10 years. neil: and up being four or five months. charles: in a place called camp cupcake. sam bankman-fried is not having that luxury. neil: you look at the impact of prominent sentencing and the reverberation it has. i was looking at other
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corporate scandals, and it is not as if all of a certain everyone in the financial world becomes a saint or candidate for pope. this does keep happening. >> it is so right but these are crimes committed for one motive. few people are able in circles in which he ran are able to control that particular emotion. i don't mind a lower sentence for someone who comes in and says judge, victims, i am sorry, i beg forgiveness and do everything to cooperate and everything to make things right. this guy did the opposite. he got on the witness stand, tried to blame others, he hasn't told anybody where the trails of money lead and who else was involved in criminal conduct.
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it wasn't just him. he was the leader. charles: the victims, because people get most of their money back, this is what judge kaplan was thinking, the victim aspect of this is pretty weak. the point you made this keeps happening. what we don't know is even with all those sentences, and they were stiff sentences, how many people were dissuaded from committing crime. the oral argument to doubt the death penalty in places where the death penalty there's a lot of murder but you don't know how many were dissuaded because no one says i was going to commit murder and i didn't because of the death penalty. these sentences have an impact it does have an impact. neil: last that long. charles: he gets out in 15
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years. neil: that was the case and you never know. let me get your thoughts. when you see these sentences meted out, they are rare but not that rare, one type of behavior changes but trying to dupe investors never seems to. >> charlie is the best but i disagree with him on this. this is not how to change behavior one iota. people will walk away from this and say i was able to swing at least one billion dollars out of this thing and do 12 to 15 years. doesn't sound like such a -- i've talked to these guys. charles: to go to jail 12 to 15 years. neil: that's not a short time, as if you're going away for --
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charles: 10 to 12 years. one thing i will tell you, go to twitter and look at these people pumping meme stocks, it's never going to end. only thing that prevents it is people getting sentences in this range. neil: stay there. i want to pick your fine print, your fine brains, this gentleman, a big favorite to people. the editor in chief. you are watching this and a lot of people tying in crypto related assets, i believe they were all going get into it, they redo for a comeback anyway after bitcoin itself will show up. what do you make of the impact? will this change? >> this has been going on for a couple years, start to finish.
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we've seen risk appetite, stronger, for crypto markets, they take this in a bullish way. if you commit fraud, you will he held accountable and this drives one of the biggest problems with crypto. neil: wasn't a standard indictment. >> we are hoping it is a one off. the real question, for people that do commit fraud, will they be held accountable. it will eliminate one of the problems, people were worried, people get away with these things, now you see these things, it will improve sentiment and bitcoin will keep going at all time highs.
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neil: the wrap of the crypto world, sec is worried about it. they trade this stuff. they are suspicious. >> anything that disrupts industry, crypto has whether it is better or worse. there will always be resistance but we are sitting on a crypto market worth $3 trillion, crypto adoption basically everywhere. bitcoin etfs, we are at the point where crypto is here and those who don't accept it will be left behind and it will get bigger. we've been bullish for years now. the last 6 months straight,
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$70,000 coin for 80,000. neil: one of the things i learned that charlie touched on earlier about people made fully whole but they are not going to lose everything. they recoup a lot of money. thinking to myself, you are the legal eagle but because i watch law & order i qualify. there might not be hurt investors in the end or as many. is it the same argument? no innocence here, good thing to even briefly screw an investor. if they can be made partially whole and even fully whole, damage done or damage dismissed? >> that is probably why judge kaplan did sentence what i
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think is the lower end of the guideline range, the range was 100 years, probation came out and recommended. the request by the defense lawyers was similarly ridiculous as others have said. the government asking for 50 and 60, the judge split the baby and went down the middle. my concern is always what message does it send, if i take the worst bitcoin offender, the history of bitcoin and say worst-case scenario, the worst day i will get 15 years, a lot of people calculate risk versus reward. neil: one other dumb question. the guy being looked at here, the judge goes into the court room, he has a number in mind.
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is there anything for those who might have said good things on his behalf the changes that number? is your experience such that the number a judge has in mind is the number he sticks with? >> great question. normally the judge walks in and my experience with a number in his hand based on everything he knows and reading everything and participating in the trial. only thing that changes that is when the government stands up and says this guy, this girl, has fully cooperated with the government, we expect more cases down the road and we will be asking you for consideration based on that. that, in my experience is the only reason a lower sentence is given. neil: 17 minutes after the hour, sam bankman-fried, the
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ftx founder responsible for stealing $10 million, has been sentenced to 25 years in prison. i'm told the he could serve 16 to 18 years of that sentence. that is a moving target. i interrupted you rudely. charles: i just think it does a disservice by saying this is good for bitcoin. this has nothing to do with bitcoin. it doesn't help bitcoin. sam bankman-fried wasn't invested in bitcoin. he committed a garden variety fraud called a ponzi scheme where you take money from peter to pay paul so it doesn't add up anymore. that is it. sort of extrapolate, it is mainstreaming, we had larry fink on it, thinking of more etfs.
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whether people lose confidence in what is essentially a ledger, not anything really backing up used currency which is backed by full faith and credit. it's a pretty despicable fraudster, he got caught. i tend to agree with the counselor. if you tell me he's getting 40 years in jail. i can see why judge kaplan said 40 years in jail, no one is getting crushed here. let's throw him in jail for 25 years but to extrapolate this for bitcoin hurts investors. look at bitcoin in different metrics not because sam bankman fried is going to jail for committing a ponzi scheme. neil: other dynamics might help the crypto arena. kelly o'grady has more information.
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>> reporter: we are learning the judge recommended sam bankman-fried served that 20 year sentence in a minimum security prison in san francisco. he could have family and friends more easily visit. and stealing 10 billion in bankruptcy getting that factor those customers. and he tells me that the formality. the other thing, color when he got that information. he looked down, never looked back. he exited the court room. he wasn't in handcuffs but
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apparently he pulled and aoc, put his hands behind his back crossed almost as if he's used to having handcuffs, very eerie moment as he exited the courtroom. neil: we saw what looked like the parents leaving, what was their demeanor like? >> reporter: prior to going and they looked pale, thin, concerned. our producer was standing next to them. documents impacted his trial. it was very quick. they looked very concerned. no color around that but i'm sure going forward in the appeal process. everything but the cartoon channel at this point.
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the whole dynamic, charlie touched on, there's a different dynamic for the future of bitcoin and crypto currencies and etf, that is -- i am wondering, this notwithstanding how do you feel about that whole arena? >> no one is looking at this ruling and saying bitcoin is going to 100,000 because sam bankman-fried is going to jail. it is just another piece of the puzzle that says have more confidence in crypto. we 20 do you have confidence in the structure? >> no one is 100% there. it is growing. as it becomes bigger is naturally going. neil: for trading this stuff, etfs are different. it is still wild. >> differently not a mature industry. neil: like charlie gasparino.
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charles: i will never start growing. in the long run. you have to wait and see where this goes. if you are an investor we could sit here all day, it is subjective, these coins are up 100% in the last decade. as an investor you can't ignore that. the market itself is strong. charles: what you are saying, the bernie madoff sentence is positive for the stock market, for investing. it showed they are cracking down, bottom line -- neil: not saying that. charles: may not lead to price appreciation but shows they are
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looking at this market that is maturing. >> wasn't bad for the stock market that bernie madoff -- charles: after -- the dow jones hit, the s&p hit its all-time low. dow jones trading. but didn't have that. that is my point. bernie madoff had nothing to do, catching him in december had nothing to do with the dow hitting an all-time low for the next few months. the fundamentals of the economy and the banking system, the dow hit its low. sam bankman-fried is garden-variety, there will be more of them in crypto. crypto will fall or do better. every day i go back and forth, based on more fundamental factors than sam bankman-fried.
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>> we agree. i outlined that. nobody is buying this coin because of sam bankman-fried. charles: he barely traded it. neil: he was able to corner $10 billion in this market, massive crypto world that was a fraction of that. i understand that. it does show you what a clever guy can do to take advantage of a market some perceived, a little less now, is it regulated or policed enough, is that a message that comes from this? have we learned a little bit from this that there are better safeguards, protections to avoid another scheme, ponzi or otherwise? >> another great question. the lower, compared to what he could have gotten. probation recommended 100 years, it dilutes the message.
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they got probation recommended higher sentence, more than ten victims. the amount of money involved, no remorse, obstruction of justice, perjury. all those when you put them together, i sat back and i said he walked away having beaten the government. in some respects he's going to go to jail but i bet you, contemplating his appeal and thanking god that he got out with something less than life. neil: he's a rough customer. if you and i ever went before him, we are done. give me the injection now. thank you very much. adam goes without saying. following on that, we are following money in another way.
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a couple blocks from where i sit right now a big fundraiser to president biden and bill clinton and barack obama and if you want to take a picture of all three will only cost you $100,000. sam bankman-fried and money, after this. slipping out of balance into freefall. (the stock market is now down 23%). this is happening people. where there are so few certainties... (laughing) look around you. you deserve to know. as we navigate a future unknown. i'm glad i found stability amidst it all. gold. standing the test of time.
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>> welcome back to cavuto
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coast-to-coast, tracking a major fundraiser with president biden, obama, and clinton. the event is set to bring in $25 million. the biden campaign is building it as the most successful fundraiser in american history. it will cost a lot to attend, anywhere from $225 to half $1 million with the highest donors getting their picture taken with a three presidents snapped by a famous photographer. there's a star-studded lineup including mindy kaelin, queen latifah, stephen colbert, and others. team biden is contrasting the historic show of enthusiasm with donald trump's flailing operation. biden's warchest sits at one hundred 55 million and trump's is 1/3 of that with 240 million cash on hand. the biden campaign rights trump is scrambling to raise cash as he lags behind president biden in fundraising. instead of closing the gap to fund his campaign he is fundraising to pay legal bills
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and relying on donors to finance his bond. the numbers aren't all good for biden. new fox news polls show 38% of voters said is grace the compliment as president is nothing. another 6% said not being trump. in a three way race, biden loses trump 38% to 32% with 12% picking robert f kennedy junior. biden is pulling and two popular predecessors in another fundraiser to turn things around. >> the current president, believe in what we are trying to do, the biden/harris administer ration, to move this country forward, protect our democracy, protecting our freedom come building economy. >> reporter: 5000 people are expected to attend this event at radio city music hall and it is sold out. neil: i thought it was an early christmas show going on but apparently not. thank you very much.
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former clinton advisor mark pettit, chris wilson, intelligence ceo. the importance of these things, there's a lot of money, 25 million plus, could be more when all is said and done. despite the polls, you wouldn't know looking at the money president biden is raising, what is he doing with that? >> i always say there's a campaign which is about who is raising more money, who is more negative. this is a star-studded show. people will have a big time. i've been on a lot of organizing, donors enjoy it, hollywood comes out and gives their best. it's not exactly a campaign look, you don't want to have on tv, this kind of fundraiser,
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donald trump is overseeing the -- a policeman at the same time. nothing else, the biden campaign will do well. neil: in 2016 when donald trump was running against hillary clinton, he hit the crowds. she did not have that. what do you make of that? >> that is why biden is having to bring in clinton and obama, donors know he is in trouble. not unheard of for a former president to raise money for presidential candidate. it feels like something different to me. star-studded celebrities aside, i will leave it to the hollywood program but feels
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like democrats trying to limit biden's exposure to donors, democrat donors love clinton, they love obama, bill clinton is four years younger than joe biden, obama significantly younger. the goal is for them to bash trump and hope donors pay no attention to the old man in the corner who is the actual candidate. that's the bigger issue here. trying to hide biden and keep him behind the people who will stand out who are the celebrities and the former president. not the current one. legally does it hurt when people see, whatever they think of barack obama or bill clinton, they are charismatic individuals at ease in front of people, very glib, fast on their feet, they might say we like those guys. >> i'm sure they will stage the speaking very carefully in order to avoid a comparison like that. obama and clinton have a gift
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that is rare but at the end of their, having all the presidents together with you is a lot better, i don't think bush and trump will hold any fundraisers together anytime soon. togetherness in the party the republicans don't have. neil: final word, chris, thank you, interesting seeing you. it will be like the marvel movie, the three presidents take a picture. if you are not one of the big time donors that picture at your chest. more after this.
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adam: the former ameritrade ceo. and sam bankman-fried, and they were brought to justice and served -- kingpins suffering the same fate and what do you make of this. >> the investors are going to get money back.
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neil: where they going to get that money? >> they have that account. they will be okay now. they are invested in that. to they invest in that. neil: do you invest in that? >> i invest in bitcoin. neil: it's usually risky money. >> 70% of my portfolio is bitcoin. part of that, it has in the last couple years, committed to strength. neil: it's a big percentage. >> there's room to run. neil: not like stocks. explain your appetite. what is your appetite?
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>> i like the market now. people look at this 10% correction every year. the reality is when you dig in deep from the financial crisis, there have been 11 positive returns in the marketplace. there have only been 5, 10% correction this. and powell has done, one or 2 cuts of what we have. it is positive, enhance productivity and efficiency, comes to that. the last few years, what's going on geopolitically, the
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terrorist attack in moscow, can't lose sight of what's going on geopolitically. neil: since you bought them exponentially and a large part of the portfolio, the magnificent seven, increased in value or larger chunk of what they own, is that a danger for them? >> you have to be disciplined to what's going on. the market is giving us nothing. they gave a short rates with no risk of 5.4%. the percentage depends on how you want to be, but the
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percentage is short-term treasure raise, and what kind of equity exposure you may want, individual stocks or an individual sector with technology or healthcare or whatever it might be for sector and regional perspectives. to your point as those portfolios do well, watch the imbalance between cash position for equities. as the equity increases, you trimmed that over time, don't just close your eyes and continue to do it. it is a good time to take money out of cash so you wind up putting it in the equity market. you've got to trim as it goes on. neil: this goes on, the presidential election year looks good. i'm wondering for next year.
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>> we've got to get through this year first. it will be -- won't be concerns who will be president, we will know what the situation is. . 20 is it matter who wins? >> as far as the markets go, the markets have done well with biden. they will look at trump as more business friendly and more policies that are more business friendly so markets will do better with trump. but talk about still in the early stage of ai, think back to the 90s when the internet was around, 94-95, this is still the beginning of this and -- neil: will be a weeding out. we will have something like it. the difference is a lot of ai players are making money hand over fist. a big player, they are doing well. not like we had an overwhelming number of companies not making any money.
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>> except for the fact that the internet, back then spending a lot of money to buy stock. that is for 0 and back then, the internet allowed online trading, you could buy and sell a stock at the press of a button so it's far more efficient and communication, social media, all that. ai has a greater impact on society and in general than what the internet had back then. neil: you don't fear a repeat. >> the beginning of the internet and the beginning of ai will be significant in terms of human history and the broader markets. neil: thank you. you've all heard of the passing of an outstanding statesman, i haven't interviewed anyone more impressive as a human being, that is one of the things
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coming through again and again. a guy who knew him well ran against him for united states senate, doing well for himself, the governor of connecticut after this.
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(vo) the key to being rich is knowing what counts. adam: you might have heard nancy pelosi said it was brave on the part of chuck schumer. what do you think was brave about it? >> don't think anything was brave about it. it was outrageous at the case of a high elected official taking advantage of a friend, wouldn't do this with a casual ally, to call out the closest allies of the world, a democracy, when it is at war,
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and tell them they should dump their prime minister, talk about crossing the red line. that was a diplomatic redline of everything crossed. the good news, we have a good crop of really fresh faces who will present contrast to -- neil: give me some ideas. >> i wish i could. no labels is not the kind of group that will kill me. neil: i thought it was a move on his part but my only point is that would never happen now. the moderating influence on a conservative, don't think that happened. >> i was raised in politics at a different age. it was about addition, not subtraction. you can't just stick with your core constituency, you've got
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to add to it. and for a presidential candidate, adds to it by choosing a running mate who is different than they are. in 2008, when john mccain said he wanted to vet me for vice president on his ticket, are you kidding me? i really do. i'm reelected as an independent but maybe i have to remind you i'm a democrat, still. that's the point. he took me on a ride i never expected. never expected to run for vice president. neil: very unusual. >> is america a great country or what? neil: so sad. at least 150 times. ned lamont, the connecticut
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governor, former democratic candidate up for senate. joe lieberman running as an independent beatings that. ned lamont, good to have you. what do you remember about him? you were classy about it. rates were classy. a lot of people paul are rising get, didn't join the club, and it seemed to work out okay. >> we got off on an inauspicious start. i took on a former candidate for vice president, a real issue we disagreed on was the war in a rack, had a feisty campaign but want to know what it says? speaking at his memorial service tomorrow, that says volumes about the family. neil: says a lot about you, you what upland complement, i was thinking, having you want, we
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don't do that today. we shout at each other, we scream, it's nuts. >> joe described himself as old-school from another era. i hope that's not the case but he was there at a time, he and john mccain worked together across the aisle and were friends, don't have that as much in the senate these days. it seems more ideological. i hope that changes. that's part of his example. neil: he left anger about the way we as a country are treating is real, the administration divided on that, going to rafah or how much to continue, he took exception to chuck schumer but it's an open divide. if it hadn't been for him, what do you think? >> he was always israel's
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loudest defender and is consistent to the day he died. there is room for disagreement about rafah and the bombing but never forget october 7th. something joe lieberman reminds us every day. lauren: 20 i wish we had more time but i wanted to get your perspective. i admire the fact you try to work with both sides. it is not an alien concept after all. ned lamont, governor of connecticut. we are looking at not a beautiful spinning rally but this is the last trading month, trading day of the month and we are looking at a quarter that could be among the best we've seen for first quarters back to 2019. still a ways to go. "the big money show" gang can keep that going. taylor: hello, i'm taylor riggs. sean:i am sean duffy

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