Transcripts For FBC Making 20240703

Destruction are actually mounting. The old fed playbook says this is the way it is supposed suppoh be. They are supposed to break a lot of stuff. Well ask chicago fed president Austan Goolsbee in exclusive interview, while something his grandpa said to him, thinking there may be a different way for god policy to break out. Our panel will react to last nights debate. I will give my buy, sell, hold rating on the candidates with my specs guest Beverly Hallberg. All that and more on making money. Charles we have liftoff, folks, and it aint the stuff you want lifting off. This is what they call on wall street a par bolick move. A slang that something goes up high rate of velocity and magnitude on the chart. These things are going up at a high rate of velocity and magnitude on the charts. 10year bond yield, but the 10year bond yield that is absolutely monday boggling. Remember when we were down here this was supposed to be the resistance point . Looks like it wont stop. There are so many implications for this that wall street is not even sure. All that is know that is not supposed to go up like that. What else is not supposed to go up like this, crude oil is breaking out. Feels like destination of 100 is inevitable that is not a good thing. Speaking of not good things, par bolick most, Mortgage Rates. How will this Housing Market move, if you have a 3 mortgage you will not go for a 8 mortgage. That is obviously crushing us as well. You can see it. This morning we got pending home sales. Wall street thought it would be down 1 , instead down 7 , almost 19 from a year ago. Listen, here is the thing, the Federal Reserve, when they do their thing they are trying to break things in the economy, like a bull in a china shop. Well, i got to tell you, when they break these things they also break americans. They shatter our dreams. They shatter our aspirations long after the dust settles, so we have a very special guest we want to start the show with. He spoke at the Peterson Institute this morning. His speech was titled the 2023 economy, not your grandpas monetary moment. Send it down to d. C. , Edward Lawrence sitting with chicago fed president Austan Goolsbee for this exclusive. Edward. Reporter charles, thank you for that intro. I appreciate it, Austan Goolsbee, chicago fed president , thank you for joining us. I want to get right into it with the rates, your wheelhouse. You said your grandfather told you not to buy stocks. That was his advice, scared from the great depression. Historical lesson. Reporter maybe we need to listen to that. The Federal Reserve is saying there will be at least one more rate hike. That is the forecast were seeing from the Federal Reserve but the market is pushing back maybe we think theyre done. So whats your message then to the market now . It was a little different. If you look at the s. E. P. That came out of the last meeting, the median was one more rate increase but there was a sizable, more than a third that were for holding. I dont think its wrong, what ive been saying is, were rapidly approaching the moment that if we see whats happened with inflation continue, which is, it has come way down from its peaks, the argument will not be how much more should we be raising . The argument will be how long do we need to keep it here. Reporter pce inflation coming out tomorrow. The trend is gas prices are up. You heard charles talk it about that, 3 rising overall but core is staying steady or, staying right around that level. Is that Mission Accomplished for that month then if you see overall going up by core staying where it is . I wouldnt call it Mission Accomplished because were still above the target inflation rate. So inflation still has to come down but if you take a step back and you look at the last three months we got on the cpi side core inflation is down to 2. 4 . Thats come down far faster than anyone predicted. It is sort of why i made the argument this isnt your traditional moment. The traditional argument is, you have to break the economy if you want inflation to come down. For a variety of reasons. Supply shocks, fed established credibility and some other things. That doesnt have to be true and lets at least try, we got external shocks coming as you say, oil prices is a real one. Auto strike if it extended for a long time, that would be a real one. Youve got slow down in china and other threats but in the face of that lets try to pull off this golden path landing. Reporter are you okay with 3 inflation you say for longer through the president ial election then . No. Im not okay with three inflation. That is not the target. Inflation has to get to 2 . My argument is were on the way there and we dont have to have a major recession to keep getting inflation down, which in normal times you do and thats kind of the grand pas historical lesson that i dont think reporter i will bring in charles a little bit. This morning i was on a picket line in wayne county, michigan, i heard from the strikers, this is hard on them. The strike fund doesnt go as far as the paychecks go. Have you seen a financial burden because of this strike . You havent seen off of the data. If we have government shut down we werent get the data. It will be relatively hard to look at the data. At the chicago fed, the 7th district, which have the most auto production of any of the districts in the united states. We have a lot of expertise looking at this. If you look at past strikes in the auto sector the shortrun impact, if the strike is not expanded and extended you dont see very much of it in the data because, for whatever it goes down it comes rebounding right back up. So all of the analysis here, 75 of the analysis here is how long is this going to go and 25 is, will the tight inventories that coming out of covid that weve seen make the impact different . Are we going to see price impacts on cars, for example which we havent seen in previous strikes. Reporter i want to bring in charles. Charles, i know youre itching to get a question in here. Uhoh, charles, how are you. Been a while. Charles first and foremost, austan, congratulations. You and i got at it for 20 years. I know you to be a political creature. Im a fed man now. Not that. Charles i like what you were saying about this traditional it thing. Every time i talk about the fed with regular folks theyre wondering how come it has to be this way, how come on the fed has to take a mallet, like a bull if a china shop break everything up, but then you qualified it maybe this time. How about just, you know, i know you guys have these conversations, you push, pull, how about the notion maybe we dont need to break everything up before we can call Mission Accomplished . Charles, i knew, when i was talking i knew you were going to be torn you were going to say wait i agree with him and you would not know what to do with yourself. Charles [laughter] look, the philosophical version of the question of maybe in every moment do we have to say theres not a tradeoff, i dont know. In a lot of moments there is a tradeoff but at this particular moment because of what happened in covid, because we have been dealing with all these supply chain interferences, labor supply problems, some of that stuff can fix itself and i think that we dont automatically have to break things and the, the way that manifests rubber hitting the road is, just because they announce that gdp growth is 2 instead of 1. 3 , thats not an automatic were off the target to get back to inflation. Charles to that point, wees always come up with analogies. If you have a hotair balloon, you shoot a hole in it you know it it drifts back to earth and you dont have to keep shooting it. A lot of Economic Data is falling apart. I heard edward ask you about the auto strike. We heard from carmax this morning, a proxy for the industry and the economy, the stock is getting annihilated. There is obviously signs this is kind of working but you have the hawks who seem committed to this and thats what is hurting the street. Maybe it is part of it, austan. I always thought the jawboning was, the arrow in the quiver that sort of nudged things along, the threat, the sword of damocles that does the job, feds job for it. Does that play a role . Maybe. You see the long rates going up like that. That is a form of Financial Condition Financial Conditions apprying a form of monetary tightening. The fed has to look at the Financial Conditions when setting its monetary policy. If you feel like there needs to be tightening and the tightening coming on its own through Financial Conditions we absolutely need to take that into account. I just think, a, remind me never to get in a hotair balloon with you, stop shooting. Charles im on the ground were in the balloon, charles. What are you doing . Charles dont get in the balloon when youre down on the ground and im in the balloon. I remember though conversations. I have a minute to go. It is tough. You guys are also human. There is this Human Element plays a role particularly with chair powell missed the inflation thing, transer to thing was huge debacle. I know paul volcker, i know paul volcker, that Senate Moment with shelby. How do you take the Human Element out of it . All these folks have phds they think theyre brilliant. When it doesnt work they have double down because brilliant people tend to do that, when you have meetings with the colleagues how do you take the Human Element out of it . I thought you were saying something about me not being human, i didnt know to object. As you know paul volcker was a great mentor of mine and as a friend. I think jay powell will be remembered as a fabulous fed president , if we pull this offer if we could get inflation down this much without having a deep recession i think they will name elementary schools, ps 2023, fomc. This is, this is a opportunity not a guarranty. Charles right. And the only way to get the Human Element out, i think is to have a lot of different viewpoints which on the fomc they are and they express them when we have that debate. That is the best chance we got. Charles the irony ive been feeling that way, i think powell, obviously this is his way of redemption, it is a history. So last week at the fomc meeting it wasnt that he said he was giving up the ghost on a soft landing but his body language sort of slumped, not the baseline. I know he is speaking tomorrow. Hope he comes out there puts it back on the table. We could maybe still get a soft landing because i think that was a calming a lot of nerves. Austan, congratulations again. I really miss you. I miss our dustups. Well be waiting for you when you get off. I know lifetime gig. You probably never will want to leave. Edward, great stuff my man. Reporter thanks, charles. Charles later on in the show i give a buy, sell hold on gop candidates in tonights debate. Ii want to bring in north man trading founder sven henrich. I know youre no fan of the Federal Reserve. As you goolsbee was a interesting pick. He is a Political Animal and we dont have to be traditional its, in other words crush everything and then say Mission Accomplished . I mean it sounds good. The reality historically he is absolutely correct, that is what happened. You raise rate until things break then you cut them. Thats been the script. The issue i think we have here twofold is that the, this cycle is a bit unique, for once the u. S. Government is running a massive deficit, six, 7 of gdp. That is usually not something that you see in a nonrecessionary environment. You call that maybe the fiscal kind of stimulus running through the system a little bit but muted some of traditional signals and maybe frustrated them as well. The other issue now because of all this debt, we have this massive debt issuance and that contributes to rising yields and the higher these yields go the odds are something will break quickly. Charles you know i read, i love your tweets. Im glad youre back. I missed you, but i still read the tweets. I like one a couple days ago about the economy and the aftermath of all the fed stuff. Worst inflation in 40 years, Housing Affordability the worst ever. 70 of americans living paycheck to paycheck. Im thinking about it, just what you said a moment ago, feels like Rube Goldberg thing. You have to do this, this lever moves this, teapot heights this, wheels turn, arrow pops the balloon. It is a like a crazy circle. My thought when do we ever get out of this . Feels like were stuck, sven. The fed overdoes it comes back to rescue it. Can we ever get out of this with a traditional Business Cycle without the fed interfering . First off, charles, i missed you too. Lets be clear we have this massive debt construct, continue to be with us. They cant continue without more debt issuance. 50 trillion of debt theyre looking for. I think were stuck. In this particular market construct what weve seen in september obviously youve seen markets react now to a very tight relationship with yields rising and the dollar rising. So unless that reverses you have risk lower. Now if it does reverse like for example last year which was ironally the same time weapon had a massive market relief rally coming. It is really key what happens in the next week or two on that front, ultimately the debt construct cannot handle these high rates and yields for a extended period of time. I know the fed likes to talk about higher for longer but i think thats also happy talk to try to keep the tightening on. Charles right. Ironically as your, goolsbee just mentioned i dont know what the tightening he is talking about because Financial Conditions have actually been easing all year long and looser now than they were in february of 2022. Charles yeah. When the whole tightening cycle began. We havent really seen any tremendous tightening. Hence the Rube Goldberg thing. It is fun to watch the gizmos. Golly feels like were pack to where we start. Sven, great stuff, appreciate it. Thanks, charles, take care. Charles after the break, folks, we have elizabeth evans. Why she thinks 2023 will end on a high note. And 2024 . Get a pen and pad. You want to get these names. So my next guest is actually taking the fed seriously when they say higher for longer. What exactly will that mean for the economy, for the stock market. More importantly how do they 23456 gait this environment. We have elizabeth evans. Youre taking the fed at face value . Oh, boy. I think we have an issue here. She cant hear me just yet but im hoping that she will. Usually these things take about 30 seconds to fix up. So just again you heard my talk, conversation with Austan Goolsbee. Higher for longer is a whole different animal. Usually the fed goes higher, breaks something, and then they start to cut rates. Maybe they go higher around go flat from here. Elizabeth, how are you doing . Have we got you now . Im hear, charles, good afternoon. Charles so youre saying okay, the feds saying higher for longer, fine. How does someone invest in that kind of a scenario . Yeah i think, look, we have to take the fed at face value. They were late to the game to raise rates. Were hearing this rhetoric of higher for longer. I think for us, what that means from an investment standpoint is you want to focus on short duration equities as opposed to Long Duration equities. What are short duration versus Long Duration equities . Long duration equities are are companies that have no earnings, little earnings, are not generating any free cash flow, trading a lot ofty valuations. Those companies are going to be hurt disproportionately, short duration equities, Companies Generating cash flow now. Companies that have earnings and are trading at multiples that they can reasonably grow into. I think we take this, we have to believe that were going to be in this higher for longer environment and so look for short duration equities. Charles to add to that, one thing weve seen here, in this, summer, a lot of times those longer duration names youre talking about have short positions. They have been coming down and getting absolutely hammered. These other companies dont have to raise money necessarily anytime soon so refinancing wont be a problem for them. So you still believe that in the soft landing though . I do. I think that were certainly hopeful that we will see a soft landing. I think that the fed is well on their way to their 2 target. So you know, if you look at august cpi, ppi numbers, august cpi we came in at 3. 7 yearoveryear versus the 3. 6 expectation but if you peel that back, within that such a large component of cpi is shelter and housing. Cost of services actually came in weaker than expected. If you look at shelter and housing i think what the fed is looking at is somewhat backward looking. If you look at some of the private Market Studies like the zillow rent index which is looking where yearoveryear lease increases are on current leases, that has come down in a meaningful way. Charles right. Were back to prepandemic levels. What we saw in 2019. So im hopeful that data makes it way into the cpi numberses and that they have the data or at least are patient to see the data and riley, really before they raise rates meaningfully. Charles herer for longer, stay the course but stay with the names, not zombie type names. We went a little long with austan, elizabeth. We have to let you go. Well bring you back real scoon. Thank you very much. Charles, thank you. Folks, well be right back. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Charles all right, so potential Government Shutdown adding to the unease in this market all week long. There has been endless headlines but few of them really, you know, few people i think believe anything will happen in terms of a continuing resolution before we get at least a partial Government Shutdown. The market grappling with the uaw strike as well, other potential work stoppages, a lot going on. I want to bring in mesh span congressman john james. Representative james, thanks for joining us headlines, mccarthy, to House Republicans pass a shortterm bill. They will work on funding to night. Received by guidance, showdown procedures. We have seeing the ball move. Government shutdown inches closer and closer with little progress. The struggle within the Republican Party itself, how do you see that being resolved . Well, the one thing that we do know for sure is the fact if that politicians dont do their jobs, politicians shouldnt get paid. I have a bipartisan bill, put your money where your mouth us. Where i come from you to walk and chew gum at the same time. Youyou have to please your customers and in the army you have to accomplish the mission and bring home sold letters safely. Right now we need the president and democrats to work with us, to make sure we can fund the government and also secure our borders. Those are the types of things were working on from sunup to sundown and well be working hard to make sure we do everything we can to get the most conservative things signed into law and secure our borders. Charles talk about this border thing, okay . We have southwest land border encounters, right now the trend, 2023 i started the show off using term parabolic, something goes straight up. August 233,000 from july which was 184,000. It is parabolic at this point. I know you put a bill through, hr. 2, secure borders act. Youre putting these things through. Can this be put on the backburner or part of the cr resolution or can it be solved separately . This has to be part of whatever temporary funding we have. This has to be the nations top priority. Hr. 2 to secure the borders from texas to new york, from florida to california. The Immigration Crisis is affecting each and over single one of us. You know how it is affecting us much, leading cause of death is 18 to 44 years old, hopelessness. Suicide and fenn at thatnil overdoses. This is coming in from china through mexico and the president is doing nothing to stop it. Republicans will have to make sure through whatever continuing resolution we have, we have border secure so we can protect american lives. Charles representative james, the statement you made is win youve been talking about a long time, it was mentioned last night, i dont think the American People are grasps it except victimss families. 18 to 44, leading cause of death in 2002, auto accidents. Look where we are now. To your point, these states it is suicide. Everything else in purple is fentanyl. This is, this is not a prosperous country this is not a country going to lead the world. This is a country that is going down the tubes and we need to fix it together, every political party. How do we get everyone united to fix this . I think until the people make their voices heard, until the people hold the d. C. Accountable for their failures to secure the border, for their failures to address the reason why were in the situation to begin with, then the problem is going to continue. We have to Work Together and when we have these bills and when we vote, lets dispense with the lies and what Mainstream Media is telling you. Look who voted for what. You are likely going to see democrats voting to shut down the government while republicans are putting a plan forward to keep our government running, to secure our borders and to make sure weve bend the curve back from this reckless, sinful debt spending were doing. We need to Work Together to accomplish all these things and one of the things im doing personally, my road to recovery act. Well be addressing Mental Health crises all over the country. It is in the senate right now. I would implore the senate to take it up send to the president s desk to help those who desperately need. If youre experiencing a crisis, call 988, that is 988. If youre a veteran, dial one, well get you help you need. Charles representative john james, fantastic stuff. Thank you very much. Thank you. Charles folks, well be right back. My name is caron and im from brooklyn. I work for the city of new york as a police administrator. I oversee approximately 20 people and my memory just has to be sharp. I always hear people say, you know, when you get older, you know, people lose memory. I didnt want to be that person. I decided to give prevagen a try. My memory became much sharper. I remembered more ive been taking prevagen for four years now. Prevagen. At stores everywhere without a prescription. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. 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Do you think well be having it at 5 . Could the 10year actually go that high . I think we could get listen where are we now . 4. 64, having like that no one ever thought it would get to 4. 5 we blasted right through that and if we find out rates will go higher than even now the one move that the market seems to be expecting, i absolutely think we could see the 10year treasury folking at 5 for sure. And remember, jamie dimon came out the other day, he said, we better get ready for 7 terminal rate. Charles i thought that was a little irresponsible on his part. Listen, the cme fed watch is not even looking at one more rate hike. Right. Charles tomorrow jay powell is going to speak. I got a feeling he will try to re, reintroduce the notion of a soft landing. I dont know how he does it. His body language let us down last week and the market has been straight down ever since. I got to tell you im with you, i dont know how he will be able to convince anyone there is a soft landing coming because i see it, you see it, inflation is start being rear its ugly head. Well get the pce tomorrow, which is their favorite inflation gauge anyway. It is already expected to be elevated. Two weeks behind that well get the september cpi, ppi and that is expected to be elevated and with oil nookiesing 95 a barrel, where do you think inflation is going, is it going down . If you take the pieces out it is going down. If you leave anything in there that is legitimate, how could it possibly go lower . Charles everyone acknowledges the stymie money is gone. We spent our money faster than any other country so we should be proud. We got the last version of the gdp number. Consumption was cut dramatically. We saw carmax getting hammered on a bad earnings report. We saw pending home sales down 7 . The street thought it would be down 1 . Maybe it is the consumer, maybe the fed looks at the consumer, okay, theyre finally tapped out all except the credit cards but on these high rates, how far will we go on that . It is interesting, we saw in new home sales as well, that was off much bigger. Pending home sales, makes sense pending was down the way it was but look, i dont necessarily think, i think that is Mortgage Rates at seven 1 2, 8 that is what is causing that, right . But the point is i think were not seeing the economy break yet. They keep telling us how strong it is, the labor market is strong, people are spending money, theyre going on vacation, you go to the airport, there are people everywhere, so i dont see it yet. I dont see when it ultimately breaks. I think they have to raise rates a little bit more to get it there. I dont mean break it like shatter it but they have to put the brakes on and i dont think, i dont think they should have paused last month, you know that. Charles right. I think they should have raised and paused in november but now well see. Charles kenny, always appreciate you, my man. Always a pleasure. Charles well come back with actual voters in studio and get their thoughts on last nights debate. Well be right back. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Charles all right, folks, we all watched it last night, seven republican candidates for the gop nod for president answered a whole bunch of questions, hurled a whole lot of accusations at one another and it was indeed the second republican debate. Now im joined by some voters who will share their thoughts what they heard, how they feel. Peter, alex jung. Eric was with us before, Lamont Johnson was with us before and jeanine thomas. Let me start with you. Youre ceo of a company, communications company, you have three children, two grandchildren. From your Vantage Point officers and foremost what stood out most to you with the debate . I think from my Vantage Point there was clear separation from the pack i think ron desantis made that clear separation. Charles really . What was his moment of truth, initially he was clawed rains, invisible man. Last one to answer a question. I felt he was timid playing ropeadope. To your point he came on strong, what was that key moment for you . He ended up talking substance which was lacking with the other candidates. I think he was able to hit key points. I think he used his airtime very wisely and i think he hit to the core of the key concerns for me personally. Charles right, lamont, you were with us last time, retired police officer, naacp board member. Youre pretty active. Education is a big deal for you. Did any of them, they talked a lot about education particularly with school choice. Anybody stand out for you . I wasnt that impressed but nikki haley is the person seemed most informed about all issues. I would have to say nikki haley was most impressive. Charles nikki haley, youre shaking your head, alexandria. Absolutely. I worked in the education, for nikki haley so passionate and education talking about things that are important. Charles youre a college student. You go to binghamton. You also cofounder of empowered ed, educational nonprofit. Youre passionate about it even in the midst of it. We have the student loan thing going on, kids your age, i worried about the climate i dont want to have children, feels like theyre almost defeated before they get out of the gate of adulthood. Are you sensing that . I think they are. You look look at the housing mat it is scary. Within the Education System there is not being done enough for financial literacy. Charles that should be done in grade school, right . That should be something everyone can agree on. You dont want to learn the hard way about any of this stuff. Let me bring you in, peter. Chief of staff of a state legislator. Youre involved in politics certain degree. Young republicans. Which republican stood out most for you. Honestly sounded like seven angry politicians complaining on the stage. I still think donald trump has a commanding lead. I still think he will be our nominee in the end but doug burgum surprised me and Vivek Ramaswamy always manages to capture my attention. Charles is it because, he says things that maybe other politicians think, no establishment politician would say things vivek said, none. That was said of donald trump. Hard truths really capture peoples attention. Charles when it was all said and done you still think President Trump, former President Trump as of today, still voting for trump in the primary. Charles eric, youre a pastor. Youre worried about a lot of things including border and crime, brought up a lot last night. Do you think the right solutions put forth . I was looking for that, for the language. I really dont want them to talk to us from 40,000 feet. We need the candidates to have at least a thumb on the pulse, know where we are coming to, how we feel. I thought ron desantis, he talked about the border and i agreed with a lot of that because it is a problem. Charles did anyone here change their mind last night . You went in thinking im leaning towards soandso and came out of it saying you know what, maybe this person . Anyone change their mind . Not really. No. Charles no . I think mike pence needs to drop out. Mike pence needs to drop out and Doug Christie need to drop out. They dont have a chance. Charles christie took a little bit too far, he blew it and had a great line finished with the donald duck thing. Next debate, few ircandidates, next debate, what do you want to hear . I want to hear more about foreign politics. I want to hear more about the borders. I want to hear more about education. I think this whole philosophy of coparenting with respect to the government and the school system, i have grandchildren. So it is really important to me. My grandchildren go to private school. So i think that the security in the cities, all of that is key. I want more airtime on the key, key things that are charles that is interesting. There is another panelists whose kids or grandkids go to private school. Is there any, is that one of the issues really, does everyone agree on, that the school system, what is letting us down . Do you, what would be the solution . Because you got a powerful Teachers Union that seem to be standing in the way of any sort of legitimate progress. Youre in the midst of it now. Youre in college. You are really focused on this. What would you like to see and could it be possible with the powerful Teachers Union that puts union ahead of the kids . I think that nikki haley brought up great points. She is pro Universal School choice, pro vocational pathways. In general we need to look at pathways from high school to college to other educational degrees. Charles im sorry. To cut you off. Well wrap it up. Anyone have a final comment. Im sorry, my mistake, we have two more minutes. I will be right back, make a Peanut Butter sandwich. Not on the economy. Charles we keep hearing bidenomics bad, how, when, why . We keep hearing drill, baby drill, we believe in that. What else can they tell us on the economy . Talk a lot on the buzzwords, that is my biggest issue, none put forth a plan of donald trump because he has some sort of a record to run on. Hey this is what well do to turn the nation around. Charles is it smarter to go after trump than biden in these debates to separate themselves. I have to take at least one shot at trump. Was that effective strategy, do you think. I dont think so . I believe they should go at biden. He is the person in office. He is the person with most faults. He is easy to attack. They need to go at biden. Charles what about uniting our nation . Its obvious were a divided country. Do you feel like there is any candidate out there that can unite this country . It would have to be against the powerful media which wants to keep us sip rated, only powerful entities that stay powerful as long as we hate each other. Do you think anyone out there can do this. Nikki haley. Definitely. Charles really . Well leave it there. Thank you all very much. Appreciate it. Thank you. Charles folks coming up i will share my takeaway on the republican debate. I will give you my buy, sell or hold and my ratings on all of them with Beverly Hallberg right after this. You cant buy great conversations or moments that matter, but you can invest in them. At t. Rowe price our strategic investing approach can help you build the future you imagine. T. Rowe price, invest with confidence. Say goodbye to daily insulin injections with omnipod 5. A tubeless system that automatically adjusts insulin to help protect against highs and lows. Try it today. Go to omnipod. Com for risk information and instructions for use. Consult your doctor before starting on omnipod. Charles so after the first debate, i decided, you know what . Lets judge the candidates you would on wall street judge stocks, right . Buy, sell or hold. So this time im going to add a target, right, from the paris debate. Ill use 0100 20 chance theyll actually win. So desantis, again, he came out the gate, in my opinion, a little slow. But he obviously pick up some steam. Hes still a buy in my book. Id raise a his target to 55. Ramaswamy, listen, he said hes going to put everybody to work except jay powell. The tiktok thing, i think, may come back to the haunt him a little bit. Tiktok as an advertising platform can and keeping the ccp in all of our business, i dont know about that. His target went from 55 to 50. I lowered his target a little bit. Spence is a sell, he didnt mov. Nikki haley, she had the best line of the night, right . The she covered a lot of ground w. Obviously, shes really, really prepared, she stays at a buy. I raised her target from 45 to 55, her and desantis right now tied. I like tim scott earnly, he did have sharper elbows and, listen, we love a happy warrior, he just wasnt in there enough. I think hes a sell at this point Chris Christie was always a sell for me. Hes still a sell. Burgum, ive got to tell you, he is so interesting, right . Im going to say hes a hold for right now. He had some amazing answers, he knows these issues so, so well. Three buys, one hold, and i hope they start to narrow this group. I want to bring many in one of the best political observers i know, Beverly Hallberg. Who do you think moved the needle the most . I actually think the winner last night was donald trump, because i dont think anybody cut into his lead enough. I think desantis had the strongest showing. I especially liked his answer at the end where he refused to vote anybody off the island. I thought that was strong for him. Hes not as strong as i would like him to be, but nikki haley, here was my main issue, thought the first half she did really well. I think she also has great content, but she ended up having those low blows when he says she feels dumber for listening to vi vivek. She is going to go down a little bit, i think the rest should be off the island. Charles so you didnt like angry ni ckki. She also had some eye rolls. Its not the image you want if youre running for president. Charles when you start to rise above the pack, youve got to take the slings and arrows. That comes with the territory. Vi vivek was at the center of that, but a lot of folks took serious shots. I didnt feel like he had a the same oomph that he had the first time around a. He went down a little bit after that first debate, and i think it was because he did come out swinging. So i think he was told tone it back a little bit. He liked to invoke Ronald Reagan throughout saying, hey, we need a better demeanor in our debate, if im not sure that it worked for him. I think at the end of the i day, hes not going to be the one that people are going to vote for. Yes, hes an outsider, but i dont hear him differentiate ising himself from donald trump either, and that is a big problem too. Charles what has to happen . You mentioned desantis at the top here. What has to happen . It feels like you just cant you have to do something. Last night everyone was sort of waiting for the best catch line because everyone remembers president reagan, Ronald Reagan in his debate and the catch line that kind of put him on top. What has to happen to say a desantis or or a haley or ramaswamy who seem to be the three with the most potential at this point to really make them competitive with President Trump, or is it just a contest for Vice President . Look, i think they need to be themselves. When we talk about Ronald Reagan, i think he would have been disappoint this how this display took place last night. Hes somebody that could push an issue without cutting people down, and he knew how to tell a joke that was funny. If these candidates think youre funny, please can ask somebody else who you dont pay as a staff member. [laughter] see if your joke lands. If not, dont use it. For pence to give a sex joke charles yeah, it was awkward. Yeah. I think they have to stick with who they are, stick to the issues, now its really an issue game, and dont go for the low blows. Charles real quick, less than 30 seconds to go, i also didnt like that they cram everything into their first answer. They dont really answer the question, and they get out these consultants, i felt their fingerprints over whole thing. Can they just be themselves . Well, the consultants need to be fired. Heres the thing, while there is a place to be able to pivot to what you talk about, it has to be in the same category of the question. Charles right. They went too far off. It was a mess. Charles all right, beverly, see you later. Liz claman or or over to you. [laughter] liz its like, you know, you guys, youre not she can key green of thank you very much, charles. Stocks rebounding, but i do have to temper this here. The major averages are off their session highs. 96 points for the dow jone