Relative sense yes yes. Yes, and they are. Theyre at home as they have been all week and focusing on on frankly theyre not symptomatic and there was the need for testing. Bill ackman on our air earlier today suggested the nation should shut down for a month or so, an extended spring break. If that were to happen, and i know you dont think someones voice is coming through to us, and i know you dont think that is the right course of action, if that were to happen, do you think that would be supportive of market levels or not . I dont think so. I think we need to make sure people need to have access to the markets and i dont think we would reduce concern about how events are unfolding in the coming weeks we have a few weeks of uncertainty and we will get through this and well see how quickly it evolves, but every single day we learn more every single day we put in new protections and new measures and people are taking this very seriously and thats an important thing to highlight well get through it and just the next few weeks and we need to be a little bit nimble. One more question, stacy. Why wait until monday, then to implement the decision is there a technical need for everyone to get through that trading transfer its just helpful so we can communicate to all of the Members Around the move. We can do it at any time, but giving them the time to plan for it like i said, we cleaned the building before everyone was here and were cleaning the building tonight and giving them an extra couple of days to make sure theyre with their teams while some of the clients are working on a. B. Shifts themselves it just gives them the ability to plan ahead. Thank you, stacy, for joining us all of a sudden after that decision and please pass our best wishes particularly to those cnbc members like myself regularly at the New York Stock Exchange we are out of time on the closing bell. Brian sullivan, thanks for those extra moments. Will fred, no problem important times and scary times and an incredible day. Cnbc picks up the coverage of what was another incredible day on coverage. Stocks fell hard again today, economic fears and many unknowns rattling investors the dow falling another 1300 points and it closed below 20,000 the dow is now down a mind blowing 10,000 points from its alltime highs hit just last month. Lets put that in context. It took the dow 103 years to first hit the 10,000 mark and now we have lost 10,000 in fewer than 30 days trading was halted again today after we fell 7 in the afternoon, but the pause did not refresh. Selling continued and the average return of an s p 500 stock today was a loss of nearly 8 oil also crushed and falling 24 . Oil now at an 18year low. Shares of chevron, they took it hard, falling 22 today, but there was one potential bright spot in all of the selloff. A name that you know actually hitting a new alltime high in todays market were going to bring you that name ahead, but first, weve got to get more on that historic selloff and the big breaking news on the nyse, bob pisani and we just heard Stacy Cunningham and we just heard that interview. Obviously, this is nearly, unprecedented, i think back to 9 11 im sure there were a few other times during war whats your take the stock market has closed many times over the years, and during world war i and during 9 11, but that was the stock market closing and the nyse floor has not closed before and continued trading electronically independent. I think this was a first and the right decision we did get a positive coronavirus test dunn here so lets just talk about the markets and whats going on here the markets were down 6 and persian square bill akreman did come on cnbc to declare a gradual shutdown was not working and he needs a 30day spring break and the emotional moment came when he said im not going to kill my father. I went into lockdown almost a month ago to save my fathers life mr. Ackman insisted he was a buyer of stocks and particularly of hilton and that caused a lot of people a big surprise and bill miller also came on our air saying there were four great buying opportunities his life. This was the fifth one here. So that moved the s p comments to 7 and that halted trading and hit the Circuit Breakers and unfortunately the halt was 2351 and that was the 2018 low and that was the last technical indicator that was out there we rallied big time into the close and 900 points and the Senate Passed the houses Coronavirus Relief bill and would send it to President Trump and down another 20 and they were seeking access to 60 billion in private and public liquidity and the market cap for boeing about 67 billion right now. Guys, back to you. Thinking about you guys, wilf, be well. Joining us on the cnbc news line is bob grienfeld, former ceo of the nasdaq marketsite. It is not what the nyse is and this is an Office Building with the electronic platform. Do you envision this building closing . No, i do not. I would say with respect to the New York Stock Exchange closing most of the activity, the vast preponderance of it is electronic i dont think theres much significance to this move. Do you think that its smart to wait until snnd monday . Thats for them to know with great detail we wish it was sooner, but certainly if you want to know that all of the plans and all of the customers are in place i can understand the wait. You know, we look at this market here and Charles Schwab reporting theyre having difficulty getting people to work from home not because they cant get them, but because there are all kinds of issues and ive been talking about it for a week just technology, Network Security areyou confident that the markets are working and not just buying and selling equities, but the markets are working at the derivative and structured product and arbitrage and all of those levels effectively enough right now, bob i think what you see is a replay of 2008 where the equity markets and the electronic markets are truly performing very well. Nobody likes the level and a 10,000point drop which you highlight is truly breathtaking, but the infrastructure has worked and the clearing houses and the exchanges and the brokerdealers have done a phenomenal job when you move down the automation curve where the markets are more face to face contract required and will it be on the telephone or direct in front of each other and those have not done as well and you can broadly characterize that as the credit markets and they always have difficulties of performing these kind of times and i would have to give credit to the fed and it was developed in the playbook and theyre compressing the timeframe in terms of how theyre implementing it and how they have the paper facility as soon as they did is quite impressive as someone who lived in 2008 and waited quite a long time for that to happen. Any indication, bob, im sure youre talking to people all day long of where this incredible volume is coming from . We know there was a lot of leverage out there, theres a lot of these collateralized products and passive investing and etfs, why have we seen such insane volatility and volume well, the selfevident answer is the best answer, right . Had were facing our first Global Pandemic in 100 years and people do not have any real way how to respond to it and the same investors or class investors can have a point of view one day and have an entirely different point of view two days later so i think were seeing that so you cant pinpoint any particular class oinvestors. Its the marketplace and its the world and the global economy. We have a Global Pandemic and people have to process that and we dont have the tool kit in our mental capacity right now to really kind of get our head around it. Where do you see this whole thing going . Well, i think when you look at what the fed is doing and what the administration and congress is trying to do, you to applaud them and theyre moving at rapid speed, but thats not directly addressing the problem, right . So were going to be in this period of time until such time we get a therapeutic vaccine and that is the underlying problem and we have many, many symptoms out there, but we have to hope that our Sciences Come forward and certainly regeneron announced yesterday and they have great credibility with their work with ebola, we will be heartened by that and you will not get past this until the science delivers very strong therapeutics or vaccine. Bob riefeld, thank you. My pleasure, thank you. We have breaking news out of washington, d. C. For that lets get to kayla tausche. Brian, house, senate and treasury trying to turn that 1 trillion economic stimulus proposal into legislation that could see a vote as soon as friday according to aides on capitol hill earlier today Senate Majority leader Mitch Mcconnell said this is time sensitive and urgent issue. I would recommend senators stay around, close, just how long it will take to get through these steps is unclear, but as everyone knows, we are moving rapidly because the situation demands it after a paid leave package passed today this would be the third and biggest wave of money unlocked to combat the coronavirus. As it stands now it would include 500 billion in direct Cash Payments to americans beginning april 6th. About 100 billion in injections for hardhit industries and about 300 billion in loan programs for small business. The size and the urgency of this is evocative of the bank rescue package from the financial crisis when the first vote on that t. A. R. P. Package fail, the markets fell 7 and that is a move that pales in comparison to the moves that weve seen in the market this week yesterday, treasury secretary Steven Mnuchin told lawmakers if they did not pass this trillion dollar stimulus bill that unemployment in this country could hit 20 . Earlier today, President Trump was asked whether he saw that as a possibility. I dont agree that is an absolute, total worstCase Scenario, but no. We dont look at that at all were nowhere near it. Aides on capitol hill say that while the expectation was after the stimulus package passes later in the week or early next week, that lawmakers would be able to head home to their district, but people i talked to this afternoon said theyre leaving the option open and this is nowhere near the amount of money they need to unlock. Kayla, we appreciate it, thank you very much. Lets get back to the markets and your money and bring in two guys you know guy adamy and tim seymour and were glad you are here with us. I tweeted out half jokingly that this was the end of the day, the best feeling 6 drop that id ever seen. Of course, you dont see many 6 drops, but there was anything about the price 30 minutes to an hour giving you any reason to be a little bit more optimistic well, its better than dropping an additional 6 of where we are so, yes. Given the choice, its better and i am somewhat optimistic i mean, not that levels matter at all and people talked about that 2350 or so level. I think i heard bob pisani mention it, so the fact that we closed above it is encouraging what i would be more encouraged by and im sure tim has thoughts on this, as well, again, if we can somehow, if the volatility in the treasury bond market would somehow start to wane and whatever the level of instability is, and if we can sort of g sort of get there. If you remember back in february of 2016, i want to say its february 8th and i dont remember the exact day and it was a day the s p traded down to 1810 that day after the market closed, we got three pieces of news and we got news that jamie dimon himself was buying j. P. Morgan the stock was 54 a share. I think i got news from opec about the oil market cratering and we had the bond market with deutsch banks and those in confluence had the bond market and short of mr. Buffett announcing coming some of the ceos and not the corporations buying back stock, but some of these ceos putting their money where their mouth is i think that would give people a lot of i think it would give them some encouragement. Yeah. Some encouragement, tim. Would you agree with that . Step up, get out there and buy your own equity . Certainly, its a place where equities are looking attractive relative to just multiples that theyve traded at for obvious reasons. The things that we need to see though are the liquidation thats going on in the market is a function of where investors came into this with bigger Balance Sheets and i mean the professionals and the Retail Investors and the gross in the market was massive from the fed on down theres encouragement to take liquidity and what were seeing now is markets need to simplify investors need to simplify and more importantly, the gross is coming down and some of this is forced liquidation every single asset class was down massively today and that tells you and the dollars moved 7. 5 in seven days and at one point it was the dollar trailing off at the sign of this showing a price to quality and the imkagszs for this, unfortunately are devastating for anyone Holding Foreign currency debt. Weve seen currencies around the world blowing out and as guy talked about, the treasury markets off four, almost five points in two days and thats extraordinary. Copper down 7 oil you talked about, so this is clearly, you know, people being forced to delever and those knowing that cash is probably the best place to be. You know, guy adami, we had bill miller on the exchange today and he was talking about this is a buying opportunity bills a longterm investor and one of, if not the most successful active managers ever outside of business warren buffett. He came on and said he thought it was a buying opportunity. I want you to listen and respond, sir here you go. There have been four great buying opportunities my adult lifetime the first was in 1973 and 74 and the third was in 82 and the fourth was in 2008 and 2009 and this is the fifth one. I think this is an exceptional buying opportunity i dont mean to put all of the money in it at once, but i do think layering it in right now is the way to go. Do you agree with that . We lost do you think that this youre not calling a bottom no ones asking guy adam ti to y this is the bottom and can you who is he calling it a bottom for . A lot of people at home are not necessarily whether or not if its a buying opportunity for stocks and theyre trying to figure out, quite frankly, what is my job going to look like in a month from now so i think there is a very good chance that within however many percent hes making a lot of sense, but i think the real issue for folks is we need some stability and we need the powers to assuage a lot of the concerns, but are not just necessary he going apples to 323 to 240 a share im trying to keep it real can i commented i appreciate what hes saying, but i think right now there are bigger fish to try. Yeah, you know, tim, and you look at his comments and what he said is people are being forced to liquidate and you said it as well, its that means things that have more value, maybe down the road are being dumped out and right now nobody has any idea what that is because everybodys running down the same street. Yeah, and again, bill miller who has a track record to prove it, and a friend of our shows, but managers, sometimes theres an opportunity to be buying weakness and there are a lot of folks that dont have the ability to buy weakness here and i think thats part of where the fear is. Look, as weve seen in the market today there were individual names of companies they think ultimately the market made assessments either of where their Business Model will be now and right after the end of the nearterm part of the pandemic and also, you have to be looking at every Company Based upon a leveraged profile that you think you can understand now, but again, were talking about companies that may not have revenues coming in in any meaningful way and the Airline Industry is of an extreme, but there are a number of Different Industries where if you look at theyve done some great work on this as it relates to some of the Airline Industry, youre not going to see them get back to 2019 actual revenues until you get into 22, 23. So the leverage profile is critical the credit markets are talking right now and the leverage loan market was down ten points day over day and this is the part that should be, i think, where a lot of investors should not be weighing in to companies where they cant know the profile even though theyre down dramatically our cisco ended their fiscal quarter with 13 billion in cash and trade and a 13 or 14 times Free Cash Flow yield has a Balance Sheet they think is pretty interesting apple has a Balance Sheet thats pretty interesting and those are names that are more resilient. If you look at the chinese internet names and going down just look at alibaba and how that stock has been. I think thats how you have to be navigating the environment. Guy and tim, we always appreciate your insight. Valuable insight and experience. Thank you very much. Be sure to catch our special report tonight, markets in turmoil. They are in turmoil, 7 00 eastern time today all right coming up youre going to hear from hayman capitals kyle bass. He will join us exclusively and well get his take on the selloff and maybe some reasons to be optimistic yes, optimism from the man who called the subprime crisis crude in a freefall and chevron losing a fifth of its value today and the Industry Needs to shut it down and shut it down now. Were back after this. Ere first. Ere first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. At cdw, we get that trying to simplify data storage can get very complicated. But cdw will assist your needs and implement a dell emc unity xt allflash unified storage platform. It delivers speed and efficiency, while providing simplicity and flexibility. For unified storage platforms, you need dell technologies, and it orchestration by cdw. Welcome back s sue herera with the global fight of covid19. The cases, 214,000 and as the new numbers come in the state department is suspending all routine immigrant and Visa Services in most countries due to the virus a state Department Spokesperson did not mention which or how many countries are affected. No date was given for when regular Visa Services will resume the major Hotel Industry trade group is now projecting 3. 9 Million Hotel and lodging jobs will be lost due to the coronavirus outbreak already that group says the Economic Impact of the virus is worse than 9 11 and the 2008 resessions combined. The group is calling on the government for urgent assistance to stop job losses. Toyota is halting production in the u. S. Because of the coronavirus, but toyota says it will close for just two days to do a thorough cleaning of its facilities honda is shuttering its north american plants for six days the big three automakers are shutting down through the end of the month and state and local officials are pulling out all of the stops to spread Health Warnings about the virus the South Carolina department of transportation got very creative theyre using their electronic signs to give safety messages and provide hash tags and web links so that the drivers can get more information brian, youre uptodate ill send it back to you sue herrer a thank you very much as our fight against covid19 ramps up here, were looking to china and italy to give us more on the fit. Meg terrell joins us where we stand, terrell, meg. Hi, brian as we are doing the social distancing and working from home to try to flatten the curb, rbcs team led by canon mckay did some modeling looking at what we can learn from china, italy and other places and weve gotten some of the graphs recreated here for you so the red line here are the total cases in china and the blue line are the global cases which clearly are now accelerating as china has managed to flatten its curve. If you look at the beginning of the graph youll see where china implemented the lockdowns in wuhan and Hubei Province they estimated it was about 25 days from that lockdown and the quarantine until they started to see new case numbers start to slow down and they do point out that the Lunar New Year was around that time and remember, everybody was very concerned that all of the travel people were doing was going to exacerbate the spread of the disease. Mckay said that may have helped because it enabled people to not be working and stay at home kind of what were trying to do now as we look at the numbers on when things get really bad, that is where rbc is looking at italy. They have graphed the mortal iterate in italy versus the patients there getting intensive care the blue line is the mortal iterate and the intensive care percentage is the red line when the number of cases gets high enough that puts such a pressure on the intensive care unit and when that gets to be 10 and fewer of patients because there are so many overwhelming the intensive care unit and that is when you see the mortality rate spike what does this mean for the United States . If they take those numbers and algorithms and we take a number on icu beds and the capacity we have in this country they model in the base Case Scenario which is the orange line here. You can start to see the stream in the beginning of april and thats if we take Even Stronger measures than we are right now in terms of social distancing, guys. An interesting and important look there, meg tirel, properly social distancing. Carl bass called the subprime crisis in 200 1k37 now he has more reason to be optimist being about the global fight hes here, plus does the oil industry need to take the unprecedented steps to keep itself from imploding. A man who sold out of the oil lloiness at just the right time wi jn us on that as crude down 17 were back after this. For tomo. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. B11 is that . Steve harvey . Give me b11 isnt bingo just an ok use of your hosting abilities . Its like getting a Samsung Galaxy s20 5g, and not getting it with at t. Americas best network. Bingo no, you cant have bingo. I just called out two numbers. 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Eastern time at times square if youre joining us, it was ugly the dow plunging 1338 points and that wiped out all of the gains since the election trading was temporarily halted as markets fell 7 in the afternoon. Lets move this into context from the top it took the dow average 103 years to first hit 10,000. It took it fewer than 30 days to lose 10,000 points lets talk about all of this with kyle bass and founder and cio of heyman Capital Management and he called the subprime crisis and kyle, we do appreciate you joining us exclusively on cnbc. Thank you very much. Is there any youre a guy that made his living and made his money watching the markets go down, but you are a fan of this country do you see any reason to be optimistic in any way right now . Well, thanks, brian thanks for having me on. Its good talking with you i think one thing the president and the administration both democrats and republicans have done that has really impressed me is look, weve got this bill, this 1. 3 trillion spending bill through the house and through the senate this afternoon and the 90 to 8 vote and were talking about 1. 3 trillion, if you think back through to the financial crisis, it took a long time it took months to get everyone onboard with t. A. R. P. And expanding and many different players and the president and the treasury secretary and congress here weve moved some spending bills through in light speed as far as washingtons concerned. So you have the treasury guaranteeing money market funds. You have the commercial paper facility in place. You have 150 billion going airlines thats impressive, brian, but whats most important, i think, to the people of the United States is things like this chinese virus coming into the world and they ravaged the world and then they leave and they develop some sort of herd immunity im not a doctor and ive read enough papers on this you must have read the same paper i read last night where they talk about herd, herd, immunity and basically building it up. Listen, weve never had it happen in our life time, the hong kong flu, and the last real big one was 1968 and 69 before that you have to go back to 1918 and 1919 neither of us knows whats going to happen, but from a financial perspective it sounds like youre thinking the government, whether we can be critical here or there is doing the right things quickly yeah. I mean, look, whether or not whether or not the administration took this seriously enough in the first couple of week, thats neither here nor there anymore, here we are today. Theyre pushing through things both democrats and republicans are uniting and one of the things the United States does best is we all come together in crisis and we work hard to get through it and were getting through it, and you know, i heard some other commentators on your show earlier today talk about i dont think the governments asking people to send their kids to distant battlefields to fight in kinetic wars theyre asking everyone to stay home for a month and i think everyone can pull that off and for those laid off and live paycheck to paycheck, the spending bills can help and the mortgage payment deferrals should definitely help theyre not going to be able to help every Single Person and theyre doing a hell of a job very quickly to help the other thing thats going on, brian is if you read enough papers youll see there are drugs out there that have worked to head off the duration and severity of this chinese virus. Yeah. And one of them is one and thats something south korea used to blunt the growth of the disease over there china is using it and its in white papers from pakistan to china and south korea to the United States and canada this is an antimalarial drug that has fda approval and i think well see that rolled out soon and gilead has a promising drug out there thats showing in Clinical Trials to be effective if caught early and to lessen the symptoms so when i look at this, whether this takes two months three months or four months, whatever the numbers are and do we see peak debts and the way the market is trading today and whether youre looking at the cruise stocks or Airline Stocks or hospitality and all of the hotel and motel stocks and our Energy Business is also under attack by russia and saudi arabia its all happening at the same time, and i think it feels to me like the panic is so much larger than it was in the financial crisis of 2008 and i think calmer heads will prevail and i think the prices that are some of these things are transactioning that today are buys of a life time for our generation and the one thing that you highlighted in 06 and 07, kyle, was the underlying structural problems in the credit market, in the financial marks and in the banks when you look at it, do you see those same things today or is this an income statement problem and not a Balance Sheet problem . The most fascinating thing about today as compared to the financial crisis is back in 2008 the banks were the center of the problem and today the banks are the center of the solution the banks are very well capitalized today. We essentially reequitized our trading system and we had 17 trillion of assets in our banks and we pumped in almost 800 billion into the equity of our banks and we, the United States, have the strongest Banking System in the world. Europe, on the other hand, never recapitalized its banks and theyre in real trouble and chinas banks and hong kongs banks have yet to be completely recapitalized and i think this crisis will force it so you will see banking crises in europe. You will see banking crises in hong kong and china and the u. S. Is going to be the anchor for the world this time. And thats why you believe and ill reiterate what you said because i jumped on top of you there, that there will be things that are buying opportunities of a lifetime out of this the market has done some and it was the biggest bull market and the longest running bull market in u. S. History prior to the wuhan virus really attacking our marketplace both literally and figuratively, and now its created dislocations in many, many, many Different Companies that i think will be rectified on the back end and again, i dont know how long its going to take, but there are some really, some really interesting and you can actually be a value buyer once again i forgot what they looked like in the last decade im not going to ask you to comment on individual stocks and its a reit called mfa, and its a mortgagebacked trader when you look at the Housing Market and some of the mbs stuff that we talked about so much 12 and 13 years ago together, any similarities in any way on is this going to shut down housing or do you think the credit markets will still be open enough that people are reluctant to go to an open house will buy a home you know, i think with rates back to zero and on the back side of this crisis, whats likely to happen if you look forward across the grand canyon of a down move what you will see is zero rates and enormous amounts of liquidity from all of the worlds Central Banks and i think theyre going to let the economys inflation will run hot and i think it will be a very interesting Housing Market at some point in time and i dont expect housing prices to drop and theyll probably drop on the front end and with zero rates and cheap mortgages and liquidity on the back end of the crisis and everyone getting back to work there will be a real big surge, and look, when you think about the way the world is set up today, i always ask people and they say why wouldnt you just go to cash is what they ask me and i said where else are you going to put your money . Are you going to put your money in europe where the banks are woefully undercapitalized . Will you put your money in china where the rule is by law, and there is no better place to put your money than the United States and theres no better place to put your money than u. S. Companies that are going to make it through this now, look, there are some companies that are going to get leveled by this crisis, right . Companies that were overlevered or as we see if youre running an airline and you have your cost structure and your whole cost structure is unionized and you have the pilots and the flight attendants and the gate workers and then youve got all of the slots you to pay for and all of your equipment that you probably have lease payments to make and if you have zero revenue for a month or two, youre completely insolvent and thats why the airlines are immediately asking for 50 billion and maybe rately so whether or not they spent 55 billion buying back their stock maybe we dont allow airlines to buy back the stock, who knows . I dont know how that goes, but there are a number of things that we can do from the governors perspective that will make the countries stronger over time. The one thing we need to do, o, lets just call it covid19, and not china wuhan, and lets call it the covid19 trial . Can we do that come up with the common name ill agree with you on a lot of things, but changing the naming convention for viruses thats gone on for the last hundred years, the point of origin has always helped people from the origin is. If we start naming diseases after numbers were never going to remember what kind of disease it is. I understand, i want to make sure we dont make it we dont take it to a country level, you know what i mean . Because this is a global fight you would agree with that, right . We call things west nile virus, why dont we call it the wuhan flu. We can call it whatever we want to call it not what the Chinese Government wants me to call it. Kyle bass, thank you very much all right crude oil in a freefall and youll hear from one insider on what needs to happen for the industry for the bleeding to stop stick around f blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. And now for their servicee to the community,g we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. This is cnbc breaking news market selloff. Welcome back to our continuing coverage of the wall street selloff. Check out the big move in energy i mean, this has become now, folks, pretty much a daily story. I mean, just a couple of days ago we were around 30 crude oil plunging as much as 25 at its lows today to levels not seen since 2002 and of course, back then 20some bucks was a different story. Lets talk about the crude crash and david ramsdenwood who has been calling on the industry to change and an industry you were in, you sold your company, you are an oil guy, but you say, david, that this is an industry that needs to wake up and shut things down now. Yeah. Hi, brian. Thanks so much for having me obviously what i wanted was the catastrophic change and its giving us an opportunity and i want to break the prices down into two distinct points number one is we currently have demand destruction around the world. If you think of 100 Million Barrels a day as how much the world consumes and with the shutdowns and logdowns that are happening globally, its very, very easy to see a scenario where we are down at least down 20 Million Barrels a day and if youthink about Global Demand for transportation and 30 was what we estimated the chinese were down in demand so thats 20 Million Barrels a day. So separate and apart from everything else, all producers need to shut in at least 20 of their barrels today because there is physically nowhere to put it and no one to consume it. So what happens a lot of people will tweet at me and say why dont they turn the tap off, david, like, just stop pumping oil. Once youve got a pump tap, its not that easy to tornado off the tap, is it its much more complicated, but in a way it is lets look at why producers continue to produce. There are those when say theyre hedged and most are not hedged to 100 of their production levels and therefore every barrel above the level of their hedges is being sold at the stock market number two, i would go as far as to say that the reason theyre keeping their wells on is that we have a crisis of Balance Sheet which is the cash flows were not meeting the covenant of many of the loans that the industry had taken and so when you keep your garbarrels on at 0 or 40 is theyre trying to keep the cash flow to make it through the crisis of your debt level, but at 30 and quite honestly, oil is going to fall to as close to zero as is required to get the saudi, the russians, the canadians and the American Companies to shut in and so what we need to be focused on in our industry is asking for leniency on covenants for the next 180 to 360 days so that the producer can shut in barrels for the demand so is it that easy no, but its not because its fi physically hard and its because you have the covenants in place that youll be technically in default of if you shut in the barrels which is the right thing to do. What happens when the tanks are full, david . Right now you can rent a ship and throw some oil on or fill up in inventory and the spr and its 80 Million Barrels and at the fill rate of 70,000 barrels a day. What happens if and when the tanks are full oil has to go to zero to lead to a total shutdown and so again, if we assume the world is oversupplied by 20 Million Barrels a day, in 30 days we will have 600 Million Barrels of new oil and storage which is almost the size of the spr that we have. Those are financial players buying those barrels to sell them back to the market when demand returns so that means that the land owners who own the royalties are not getting paid the government the federal government who owns the leases that has royalties on these is not getting paid and all of that, is going to the financial player, but at some point if we dont shut in storage gets full, oil goes to zero and then producers shut in. Theres no other mathematical way. All right david ramsdenwood, prevail energy principal, you got out at the right time well see if the industry listens. Thank you. Coming up, hell is coming. That message from bill ackman, thats how bad the stock market ony y get. Well talk about that big interview coming up. Stick around do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. When yowhat do you see . Itical issues facing our world, we see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Welcome back bill ackman ringing the alarm in an exclusive interview on cnbc the only cure for the coronavirus is for a worldwide shutdown if you missed it, heres just part of what he said. Until a vaccine is manufactured, distributed and injected we will go through a depressionera period in the country. Take a look at hiltons stock. Its going to zero along with every other Hotel Company because every hotel is going to be shut down the only answer for the world is to shut the world for 30 days. The Hotel Industry and the Restaurant Industry will go bankrupt first boeing is on the brink, okay in boeing will not survive without a government bailout we have to shut the borders, okay and then 30 days later the virus is gone in america largely gone in america, and then we have to be careful, okay for the next 12 to 18 months until we have a vaccine. The other way we save lives is by saving the economy. The u. S. Treasury does not have enough money to bail out every company. You cant borrow your way out of a problem. You cant lend your way out of the war. You have to kill the virus the financial crisis where things coming, bad stuffs coming and this is a feeling like ive never had, like there is a tsunami coming. Corporate america is in shutdown right now. Okay it just doesnt know it yet. The white house is now responding to bill ackmans comments lets bring in scott wapner with more on the interview and the response of whats going on behind the scenes at the white house. Thats right, brian thank you. Eamon javers asked about the comments and they responded with the following and ill quote, this is from a white house official as President Trump has said we are going to ensure that we take care of all americans including affected industries and Small Businesses and that we emerge from this challenge stronger and with a prosperous and growing economy. Thats the word from the white house tonight. I should also tell you, ryan, that forbes is out with a story this evening saying that bill ackman called blackstone to apologize for some of his comments made broadly about private equity and how private equity would go bankrupt because its Portfolio Companies would go bankrupt ackman apparently according to forbes calling blackstone and apologizing to say he is buying those shares tonight i havent independently confirmed that and thats what forbes is reporting tonight. Amazing thoughts from ackman today. Some taking them as too alarmist, scaring people, blaming him for causing even more selling on wall street. Others tonight, suggesting that his call is right, that the government does need to do more. It was certainly talked about throughout the day today, he saw it to clarify what he was saying at points after our interview going back on twitter today and suggesting that he is still positive on the market he said he was buying a lot of stocks hes long america. He just says its predicated on the fact that the government is doing even more than its doing now. He thinks that it will, and that will come out better on the other side so whereas some took his comments as, you know, a doomsday scenario and i can understand why some people would certainly take it that way he is out saying today and tonight that he is long the market he thinks theres going to be a massive bounce once this is all over and thats the reason why he was buying stock. Brian . Yeah. Scott. Its got a lot of attention and i believe youll talk about it on the special thanks, brian lets bring in dan nathan. Your reaction to ackmans comments is it hell to come were feeling hell. Were seeing Financial Markets all over the world they have crashed effectively and whats also gone on from the health and humanitarian crisis, it seems a bit hell for a lot of people and china that were locked down, certainly people in italy and now in other parts of europe i will say this and i saw the interview and scott brought on some amazing, amazing guests and influential people and investors and people in Corporate America in the last couple of nine months and i thought he was particularly alarmist and he plays tremendous aim mount of emphasis on the outcome and b, i just think the federal government other than the u. S. Federal reserve has not even done anything yet, and the fact that hes gone from zero to a thousand in such a short period of time i thought was particularly alarmist and i think if youre tuning in to cnbc to get a sense for whats going on with the markets and whats going on with the economy, i dont think that those opinions are particularly useful if youre looking for how to weather this humanitarian and health crisis, then dont listen to guys like bill ackman here is a guy thats invested in the markets and thats his business and thats how he made his millions and billions or however many hes got and he sounded like a guy who was really worried about his funds going to zero and certainly some of the investments in it, and i dont know the guy im not i dont mean to take any shots at him i thought it was entirely inappropriate for what he had to say on the network today, and i think that investors, if youre looking for some guidance on the economy and on your investments in particular, i just think you want to stay away from views like that. I think you want to unfollow people like him on twitter, to be honest with you and stay tuned here. Im glad you dont have strong points of view on that, and maybe hell call in, but dan, we had these we didnt have a hell threat in 08, but we had these kinds of big statements that were made sort of near the bottom often in 08 and today had this kind of weird feel to it, as well. Do you feel like we are inching toward some kind of a bottom not asking you to call it. I feel like were getting these big statements i said this to you last night, sully i can think back to other periods like this where markets have crashed and there are some fierce bear market rallies and in 2010 there were two 20 rallies that failed and made two lows in 2002 there was a 20 rally that failed and there was a new low before we bottomed and in 2008 there were similar sort of price actions. There will not be a v bottom, people im just telling you weve had one month, 30 decline in the s p 500 and when you look at the mark crashes in 01 to 02. It took two years. Whats unique is the velocity in the time it sold off, but it doesnt mean it will have reversal for those saying its the buying opportunity of the century, if youre buying now, there will be likely further lows. Dan, thank you very much. With a few minutes left in the show i want to leave you with good news walmart hitting an alltime high earlier today and you know what . Stocks aside i want to send a big from cnbc to all of the workers working all night, all day long in tough conditions to keep the store aisles full for the stuff we car my mission ie you money. Im here to level the Playing Field for all investors. There is always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money and welcome to cramerica a lot of people want to make friends, im just trying to make keep you from losing money my job is not just to entertain but to educate and teach us so call me at 800743cnbc or tweet me jim cramer