Transcripts For FBC Making 20240703

Making money. Breaking right now, the bravado is gone. Stock market bulls are brink blinking. Bond market bulls are blinking. It is a fdr warning only thing we have to fear is fear itself and the fed. Liz ann sonders on speed bumps. Well do comprehensive preview of tomorrows jobs report that could be a makeorbreak moment for this stock market. Stunning reversal from the Biden Administration on acute, immediate need for border wall. No longer separate and equal. The assault on congress and the Supreme Court continues. It is easy to believe it has never been this bad and we cant overcome todays issues. I will share a letter from a irate you viewer and share my response as well. All that and more on making money. Charles so the markets stumbled to the point where tomorrow really could be a makeorbreak moment. It is weak enough to fall completely apart. In fact take a look at this the spydrs, a great chart from bespoke, spy made lower lows 33 of last 50 trading days and that ties and alltime record. As a result of that weakness, folks, every sector, every single sector, 11 sectors in the s p 500, every single one of them are now trading below their 50day moving average. Every single one of them. There is no strength anywhere. You know, everyone complained about how little strength there was internally. How about none at all . Here is potentially good news. The last time we saw this few names out of all the s p 500 companies, trading below the 50day moving average, right around 10 right now, you got to go back to december of 2018 and march of 2020. Remember, after those moments though the market went on an amazing run both times. So a lot of money was made. Still nevertheless really tough period, right . It is sort of bewildering. The bravado has been taken out of both stock and bond bulls. Give you an example. A month ago bme said the 10year bond was a screaming buy. You watch the show. You saw how many guests said it was a screaming buy. Now bmo says time to be on the sidelines. The question is when will be the right time to come off the sidelines . Joining me Charles Schwab chief investment strategist Liz Ann Sonders, i have a tough question for you, when is the right time . Lets start with your piece. I love your piece. I read them every time think come out. You said last week the economy experienced a rolling recession calls for a soft landing may be too simplistic so what is the bestcase scenario . To me the bestcase scenario you continue roll through. The notion of a rolling recession, pockets of the economy getting hit at different times. Weve had hard landings or recessions in areas like housing, housingrelated, manufacturing, a lot of consumer oriented goods that were big beneficiarieses of the lockdown phase of the pandemic. We had much later offsetting strength and pentup demand, revenge spending own the services side. To me best case snare quote, if and when snare quote if we get hit will hit the labor market more than weve seen, you have offsetting stability and maybe improvement of areas already gone through their recession. I still think more likely than not ultimately the nber will declare this, whatever this is timewise a recession but i think you have to take a more nuanced look to the economy, just how unique the pandemics influence is. Charles of course. Right by the time they weigh in this is all academic study. Way, way down the road. Charles they have got their work cut out for them. I want them also to explain why backtoback quarters were not an a recession. That has never been the definition. Never. Nber is the official arbiter of the recession. Backtoback negative quarters has not been. Street always accepted. I dont know that the nber officially designated this, that given they can make the designation. That brings me something to also the piece that you wrote a jump in the socalled triple threat acting as hurdles, to avoid more hard landings if you will. Talk about that, these bond yields, spike in crude oil, prior to the last 48 hours, strength in the u. S. Dollar. So we have had some reprieve in the case of both the dollar and oil which have come off recent highs. What was, i think unique the point at which they were both surging along with bond yields normally and the dollar move inverse hi to one another because so much oil is priced in dollars, when you have historically seen a move up in the dollar, meant Lower Oil Prices an vice versa. That was not the case this time. It suggested there were different drivers going on in the oil market as well as the dollar. Weve gotten a little bit of a reprieve. That was a bit of a triple threat having surges in all three because in the case of oil, the implications it has for the economy obviously, a stronger dollar, has implications for multinational earnings, puts downward pressure own s p earnings. We all know the reason for concern about the spike in yields. So having a little bit of a breather at least two out of three of those is beneficial. Charles also had concern about potential stunts to the recovery. Here is the irony, right . Cracks in the labor market. Tighter Monetary Policy. I think tighter Monetary Policy or fed mistake is what everyone is really worried about or economic growth. We need some of this to get the fed out of the way, right . Threat of the Federal Reserve and a policy mistake off the table of all the sword of damocles over our head that is the most prominent one. What is interesting about this particular cycle is that youve got the feds dual mandates, inflation and the labor market kind of at odds with one another. Because of their desire to not just continue to see inflation come down but have it stay down somewhat sustainably, they believe there needs to be less tightness in the labor market. Not that, not that theyre cheerleaders for a weaker economy or a weaker labor market but they still see that as an ingreedent in the sort of lower for longer on inflation. Right. And thats why their sights have been more on the inflation side of the mandate than on the labor market side of the mandate. Charles before i let you go i want to pick up on that. Feels to me powell said okay, soft landing is not the base case, baseline case, they want to have tooer job losses than before. Historically the kind of spikes weve seen with fed funds would be associated with two million or more job losses. I think they would consider that somewhat of a victory. There are a lot of vagueries in the data these days. Weve seen layoffs jump more specifically. It is top down, normally when layoffs kick in, bottom up. Folks on the lower end of the wage spectrum, nonsupervisory, nonmanagerial class, this cycle has been top down. Early part of the pickup, managerial supervisory type jobs. That has been different. Things like job openings, which is a very wellwatched metric including by powell and the fed there is really low Response Rate right now to that survey. It has been more than cut in half and that makes you wonder how accurate that data is, not to mention its lagged by a month but claims, which are still pretty valuable indicator are still low and that suggests this is still some tightness in the labor market. Charles liz ann, i can talk to you all day but weve run out of time. I certainly appreciate your wisdom. Thanks, charles. Charles folks later on coming up my takeaway on the general malaise in the economy. It has been this bad before and we overcome it before but there is a secret to it. I will talk about that later. I want to continue to pick up on these markets here, how do we get to the road to tranquility . How do we get off, july, something really interesting happened. Bond yields were trending up but right here in july they erupted this is what you call going parabolic. They shot up. Immediately the stock market rally started to crumble. Immediately dollars started to go up much, much higher. Were all saying to make this reverse somehow we have to get these yields to come down but can that really happen . I want to bring in traderade cofounder. Ayesha, july 1st, what happened during that time that turned the entire investing world on its head . Hey, charles, thanks for having me back. So i, i dont know i guess it was the weak summer months. Some of the rally in the s p started to fizzle but at the same time i think the biggest thing we saw was crude oil going up. So as saudi and russia started you know talking about cuts and extending their cuts thats basically when we started to see pressure on crude oil and subsequently we saw the pressure on yields go up. Not just u. S. Yields but even global bond yields, right . Charles right. I was talking to liz ann how complicated some of these things are. On one hand the stock investors youre almost roots for the economy to slow down so that the fed is off the table but if the economy slows down too much earnings estimates will take a dip and i want to share that with everyone because just as you know, as the market started to turn up, as earnings estimates started to turn up so did the stock market. We had a pretty good move there, going back to that october low, we started feeling better about earnings. What is your case about earnings . What do you see . Are we too optimistic right now . So i do think we are a little bit optimistic here. So for the s p we are looking at gnat Earnings Growth year on year and for nasdaq looking at something around 12 which i think is pretty high. There are a couple of factors were looking at which would influence quarter three earnings and if i can run through them very quickly, the first thing obviously is inflation coming down. With that we will see pressure on revenues. Energy costs i dont believe will play such a big part here but the u. S. Dollar will so just as Liz Ann Sonders said a little while ago with the dollar going up i think well see pressure on revenues as well. Then on the cost side i think what we have is these wages, some of these wages going up, you know the strikes, upward negotiations in pay packages and so on, so forth. But most of all i think were going to see demand come down. Again well see the top line hit. Earnings might be oak. I mean i still think it is optimistic but they might be okay. I think it is the top line we have to worry about here. Charles listen, if we dont pay enough attention i think to the top line, particularly organic growth. I will share with the audience, we dont have time to go through them individually. On your buy list, rock wellauto makes, accenture, alice symbol, i never heard before, shopify. Pretty eclectic list, come back later well pick up on it. Ayesha thank you very much. Thank you. Charles folks coming up well delve into President Bidens insistence to helping americans, pushing relief for College Degrees even though there is evidence that they live a much better and longer life than anyone else. Investors are on the fence today. What is going to happen. There are some moving parts. I know somebody who watches all of them, michele schneider. She is next. Which have become top targets for Ransomware Attacks. But theres never been a reported Ransomware Attack on a chromebook. Which is why thousands of schools like the fairfieldsuisun Unified School District switched to google tools for education. So they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. 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 got to tell you obviously markets are under a tremendous amount of pressure. Everyone is wondering what will it take to step into the market particularly when the fear is palpable . We have someone who does this every day for a living, market gauge chief strategist, one of the best, michele schneider. I was looking over your notes. You mentioned signals youre waiting on before you commit to a bias. Three that stood out. I want to go over them line by line. Junk bonds versus tlt. Everyone by now watching the show, 20 year bond etf is under a tremendous amount of carnage. Okay, well start there. First of all were all about the relationship, right . So junk bonds which had a huge liquidity crunch questioned, multiyear historical type of crunch is still outperforming the long bonds. Why is that important . Because high yield, high debt bonds if people are buying them, buying them more than theyre worried about the long bonds or not buying them as much as the long bonds which is more of a night to safety, that is a risk on. Right there were kind of encouraged or not as negative as maybe we should be a at this point in time. Charles how does someone who is not as astute or you know, understand this as much as you do, where is the signal for someone watching . Do we get, does the tlt come back a little bit . Where do we know or feel better about getting . Well lets put that aside, because youre right, that is kind of a highbrow way to look at the market. So we can relate it directly to my favorite, very easy to understand indicator which is how the small caps are doing and whats so interesting about the small caps again whether you look at the s p 600 or iwm as the etf, they have landed on an 80month moving average. Why is that important . Because that is a six to seven year Business Cycle and it has not been below that except for the two months during covid since 2010. So we have actually ridden the crest of a potential recession so many times and bounced, here we are, right on it right now. So that makes it kind of simple. Charles yeah. If we have a risk on, it suggests that we could get a bounce from here and if the small caps start moving up from these levels and clear that line in the sand, then i would be so much more encouraged and start buying. Charles so would i. I like the idea of small caps being a proxy particularly for our economy. Its been really ugly. You talk about the retail and transportation sectors. I know we talked about transportation a lot. What do you want to see from them . Well it is the same kind of thing because drunkenmiller once called small caps, transportation, retail the inside sectors of the u. S. Economy and they are, right . So retail has been underperforming all year. Again i like to use certain etfs. Xrt is my goto. If you look at xrt, not quite on the same line in the sand as small caps. Thats a positive. But it is not really doing all that well. We want to see consumers stay in the game. Then if you move to transportation, obviously the demand side, considering weve had strikes but we also have a little bit of reprieve in oil prices you want to see that demand stay good. That has been outperforming both of them but still well underperforming say comparing it to the s p 500. Charles right. So all of those, if they all go together, up from here, that would be what would make the bulls right, right, about the seasonal, preelection. Charles right, right. All of that. Charles also the old saying that buy when it feels the worst, right . Every ones gut, everyones stomach is in notice right knott now. Michelle, appreciate your wisdom, we needed it extra today. The countdown has begun. Were two weeks away from my special edition of making money. It is called unbreakable investor based on my new up coupling book. It is here october 19th, beautiful thing, live audience, last time standing room only t was fantastic. All you have to do is go to event bright. Com. You search charles payne. You get your free ticket. I will see you in two weeks. Kenny polcari is coming up. He will be here about reminder of being an investor, being more than 24 hours. Im being a him facetious about it. The key to that is blocking out the noise. It aint that easy. It is a makeorbreak moment, tomorrow this jobs report, well see a big move no matter what in the stock market. So what should you expect . Economist lara rhame is here. She will share her thoughts next. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. 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Com for risk information and instructions for use. Consult your doctor before starting on omnipod. Charles theyre always big but tomorrow really could be a makeorbreak moment for this market. Lydia hu with a preview of the jobs. Reporter report charles a lot of anticipation around this big report. Were tracking one of the most bill ant young economists on the street. He points out initial claims continue improving while continued claims continue worsening. He posted a chart that looks at northern seasonal data versus the 2018, to 201920 remove all the distortionary effects. Layoffs, people who do lose a job, theyre having harder time finding a new one. You can see this one here. Initial claims were down into not recessionary territory but over here on continuing claims this is flashing recessionary territory big time. Keep your eye on that. People are having a hard time getting back into the job market that is. The fed is more interested in participation than wages than the overall number. Why weak jolts hiring and quits is a positive signal too. Here are the hires, here are the quits. Meanwhile there has been a sharp drop i dont have in christmas, seasonal job advertising. Here we are in 2023, compared to two years ago, way up here in 2021. Now this underscores the importance of the labor basket. Total nonfarm payroll growth is slowing today toward a level where recessions begin. You can see that here. This is today. This is where esession begins. Were headed in that direction. Meanwhile private sector payrolls, growth is already below the recessionary levels. You can see the black versus red. Everyone will be watching for unprecedented string of downward revisions. By the way, while the, while the official consensus for tomorrow, charles, is 170,000 jobs, that whisper number it edged up to 17,000 jobs after the initial jobless claims release. Well send it back to you. Charles oh, boy, im on pins and needles. Thank you so much, lydia. Joining me now zip recruiter chief economist, julia polkin. Lets talk about this, there are so many different variables, so many Different Things your head wants to exmode. I read your report. I know youre expecting an orderly slowdown and i find that to be intriguing particularly with the revisions. If we look at the revisions for this year i think the slowdown has been anything but orderly . Well last months jobs report had 190,000 jobs added round about but yet over the past eight months the revisions have been negative eight months in a row and the average revision has been almost 50,000. If that happens again, that does suggest, yes, this labor market is substantially weaker than we thought it was. It is not just back to where it was before the pandemic but actually slower still. Charles your consensus number is that about 150 right now . Yes, that is still above the neutral rate of job growth we need to keep unemployment low. But what is going on right now there is tremendous uncertainty around the outlook. We had three great months of inflation data, but at the same time, oil prices are surging and could undermine everything. Every time you have that degree of uncertainty, any new piece of information can cause a massive swing in people as apprisal of the situation. Charles how is the Housing Market impacted all of this . One of the things ive been reading, people are settled into their homes. They may get a job offer in another state but they have a 3 mortgage rate. So they dont want to give that up, get maybe a 8 mortgage rate, whatever raise they may be getting is going to vanish. Right. That is one drag on economic mobility in the country today and there are many others. This labor market remains very constrained on the employer side. Employers are struggling to recruit and retain talent even though things cooled down since the pandemic. That is holding down growth those borrowing costs are so enormous, Even Companies that want to hire, want to grow, want to open new locations are feeling a a little bit skiddish. Charles to that point you see it in the nfib data, you see it in a lot of places where employers, for a long time they have all complained about a lang of skills, finding right people with the right skillset. Unfortunately these days it means people showing up to work. First they were overpaying these folks to get anyone in the door. Were seeing job switchers are getting less money. Have employers decided they will not hire if it is not the absolute right person . I think that is part of whats happening but part of it is also on the jobseeker side. So in our latest zip recruiter survey ever job security, they are feeling unprecedented level of financial stress. 65 of jobseekers feel pressured to accept the first job they receive. So many people are foressed to accept whatever they can get but on the other side in tighter markets it is resulting in strikes and pushes for enormous wage growth that are causing some challenges for employers. Charles quickly, i got to go quick, but, you brought up something, these strikes. I personally believe that a lot of people believe this is the last bite at the apple, particularly uaw workers. This whole push for evs means they need 30 or 40 fewer workers in the industry, but the writers strike, feels Like Technology is looming darkly over so many jobs. This is your last chance to get a pay raise. Well you know, my economics professor always said what is good in the short term is often bad in the long run and vice versa. This is may be a situation workers getting what they want today, in the long run jobs can move into different countries. Turn to technology. Well see what happens. Charles inevitable robot will take your job, you better get paid as much as you had can, julia. You and i cant be replaced by a. I. Thats what you think. Charles believe me i saw the oxford report, at the very top was tv anchors. I know. Joining me chief economist lara rhame. First of all do you have a number for tomorrow . I think 150 is probably what were going to see. I want to stress while the labor market is reform alizeing it is still not weak. I think that is something were seeing. Charles how do you, if it was 400,000 a few months ago, 700,000 a few months ago, i look at a chart it has gone like this. What is your definition of weak . Unemployment rate at 3 1 2 . It is hard to encapsulate at one number. Touch look at the whole thing. Until we get the Unemployment Rate moving up to 4, 4 1 2, that i think would be signs it is actually softening. Charles what if it makes a big jump . It will not get to 4 1 2 overnight but making larger month to month moves, the velocity that could suggest at least to the Federal Reserve, your work is working maybe back up a little bit let it work . To your point it never moves up slowly. It usually jumps up. It is a very asymmetric response. This jobs report tomorrow into the end of the year is going to be absolutely critical. It is going to cause a lot of market volatility. It is what were seeing. The fed is said theyre data dependent. They penciled in another rate hike for this year, that the bond market is refusing to you know, to digest. Charles but i think everyone, maybe the stock market is, but cme, the fed watch, were getting there but there is you know, how do we do this . How do you do this . Because youre an economist but youre a stratgift as well. You wear two hats and the anecdotal part of me, the part of me that is a researcher i just dont see where the fed has to be as afraid as they are other than the ghost of paul volcker or ghost of arthur burns . Well, but that is a pretty terrifying ghost to them, right . What they saw inflation spike, they saw it do a total head fake, come down and it wildly reaccelerated again and to them, you know, 4 inflation, 3 1 2 is still really far away from 2 . I will layer one on. For a lot of households theyre not looking at price changes on a year by year basis. Theyre Still Grocery shopping and coming to the checkout with one bag of groceries that costs almost 100. Charles right. And feeling upset about it. Charles right. I think Household Sentiment is still weaker even though the fed can, they have progress on inflation but they cant claim victory on inflation. Charles i know, but they also, listen i think thats a problem. I think aggregate data they work off is a problem. You have mixed in a bunch of rich people that offset you know the misery of whole lot of not rich people. As a strategist, what are you doing, are you positioned anywhere . Are you in cash . Who how are you positioned ahead of tomorrow . This is really critical because the, weve seen the market flip when the 10year treasury is above 4. 50, stocks and bonds no longer diversify each other. So thats why we have stayed in real assets. Thats why we have stayed in alternative assets. Charles are they working . Yeah, absolutely. You see, you know, credit doing a lot better than traditional fixed income. Charles are you in gold . Not yet. It is too early to go back into commodities right now. Charles the gold bugs would get upset. They always find a way gold is working. Working in the sam beian dollar. You measure it that way . It is killing it right now. Alternatives, what is someone is not as savvy . If youre someone that beats the market, you have a 401 k and another account and youre active, would it be wise to have more cash than normal right now, put it in a money market . I think everybody is looking at that equation, assuming yes it is smarter. Thats why i am cautious about equities at these valuations especially the s p 500, when you get 5 on a riskfree treasury. Charles right. Getting basically the same yield in equities these valuations in the equity market are really challenging for me to understand. Youre just not getting compensated for it. So i would say, you know, yes, you want to look to fixed income, you want to dig deeper into the credit sleeve. Charles good stuff. Well know in 24 hours, lara. Always appreciate having you on. Coming up, dont look now but the border wall is making a comeback under President Biden Rikki Schlott to talk about the sudden uturn. First there has been a whole lot of red this week. My next guest says dont panic, stick with the plan. What is the plan . I will ask kenny polcari. He is next. 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. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com. Charles all rights lets face it folks, we live in an age ever information overload especially if youre an investor. You have to deal with unlimited opinions and of course the voices in your own head. Wouldnt it be great if we could kind of hit that mute button . Joining me slatestone chief wealth strategist kenny polcari. I love what you said in your note, as a long Term Investor you need to eliminate the noise and stick with the plan. I have to ask you first how do you discern noise overvaluable information . First of all the noise in your head you have to eliminate, that is the one that gets in the most. The way i look at it, what you have to do is broad portfolio allocated diversity, with a lot of big names in it then i Pay Attention to what is talked about. I dont let the politics get in the way. That is a bunch of noise, while is creates drama that is a bunch of noise. I dont let information, article in clorox, marking down because of a cyberattack. It is a cyberattack causing a problem for that are business. Doesnt mean the business has gone to kaput. Are they having a problem, yes . There is no fundamental change for clorox when i look at the staples for a opportunity. That got knocked out of line because after Different Event not because of fundamentals. Charles right. Most of the time you have to understand, i think what i find, you have to understand whats in your, whats in your portfolio, why you own it around then if anything in general has changed those reasons. If they havent you kind of have to have a strong stomach. Look i own bank of america, it is down 21 this year. Does it make me comfortable . No. Im not getting crushed in it because the average price is above where im trading it. I will take advantage of the weakness because it is way overdone. Charles kenny, ai agree with what you say, like mike tyson said everyone has a plan until they get punched in the face. When do you decide to change the plan itself . I only change the plan when something fundamentally has changed either for that name that i own or if something fundamentally is really changed in the economy that is then going to change the story for the broader market, right . Right now while it is uncomfortable right now, were in this awkward time and rates are rising, there is a lot of panic in the market but that is usually exactly the time when it creates all that opportunity, right . Charles right. Im not one of those guys. Im not a daytrader. Im not one of those guys whipping it around. Im committed to my names. Like nvidia, nvidia this here is taken off. So the portfolio got overweighted in that name. Did it make sense to pete some out . Absolutely. Did i . Absolutely. I still own a core position in nvidia i will not get rid of. Charles two questions i have a minute to go. First tomorrow, makeorbreak, the market seems vulnerable enough to me, if there is strong jobs market, 180,000 jobs, are you bracing for that . What do you think is going to happen tomorrow . I am bracing for that. I have put it in my note this morning. Im looking at s p 4200. Depends what happens tomorrow, if it come out stronger because the whole idea comes out about the fed and raising rates, i want to see if 4200 holds because that is the long term moving average. There should be plenty of demand there but if we get there and the market doesnt hold the smart logic algorithms will see that as a technical break. They will start to send wave after wave of sell orders. Buyers see that, step aside. The market will have a swift move down. That is what im waiting to see. Otherwise money i have been putting away, im putting in Government Money Market Fund with 5 on it. Im not losing money on my money at the moment. It is earning 5 . I will be patient to wait for the number. If the number comes in weakerthanexpected, and market stablizes and moves higher then i will start to pick away at some names that ive been watching that have been under pressure. Charles right. But im waiting until that news. I want to see specifically if we test 4200 what it does when it gets there. It will be a huge, huge day. Kenny, thanks so much. I like asking you these questions. I love that suit today. Charles thank you very much. Appreciate it. Youre welcome. Charles coming up my take on this general malaise in this economy and in washington, d. C. And the nation as a whole. Weve been there before, folks. We can get out of it. First i want to talk about the Biden Administration, this uturn on the border wall, also their continuing disregard for congress and the Supreme Court. Rikki schlott will be my special guest on that next. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. 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Serious side effects, like low blood calcium, serious infections which could need hospitalization, skin problems, and severe bone, joint, or muscle pain have occurred. I have so much more to accomplish. Talk to your doctor about prolia®. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Charles talk about real breaking news, real shocking news. This morning the administration, the Biden Administration, says, hey, we need to construct more border wall. Here is the thing to do it they have to break a couple dozen federal rules and statutes. Someone may accuse them of being racist. I want to bring in New York Post columnist Rikki Schlott. Here is the tune, the Biden Administration citing acute and immediate need to construct miles of border wall. I should let the audience know that President Biden said i dont believe in walls, adminstration, according to the press secretary saying this is a technicality, they couldnt get out of it but some people are looking at poll numbers, they better Start Building this wall. Absolutely. Were seeing record border crossings. Theyre overturning more than two dozen federal rules to be able to do this, completely reversing course what they campaigned on. Were see this across the board on eric adams saying migrants will destroy new york city and kathy hochul declaring a state of emergency. New york city is busing migrants up north like Governor Abbott did. Charles these are not wealthy communities. They kicked the migrants out of marthas vineyard. They were there, touched down and scooped them out quit. New york city, the richest town in the world, they cant afford them. Why do they believe, they had the flashing sign, saying come on over, just come over, we dont care, as long as they were stopping in any small towns in texas and arizona, amazing to me, now they feel the economic pressure and now feel the political pressure to change their mind. Of course no one is being called a racist for it. Absolute live. Thousands of miles buffering them from the border. Now Governor Abbott did a really clever political stunt here. Is actually making utopianism meet reality in new york city. Were seeing complete reversal theyre sounding quite a lot like conservatives. Charles democrat mayor of el paso is shipping them out this is not about party. Controlling your borders like having a lock own your door. We want people to come to this country, it is a melting pot, we have rules and regulations. No rules when it come to the administration, on student loans. Dont care what the Supreme Court had to say. Another nine billion dollars, what is going on here . Student loans forgiveness policies are absolutely out of control. There is no accountability for Young Americans that took out the loans and no meaningful long term reforms im seeing from next generation of the young people signing away their paychecks before theyre aware of it. Charles what im concerned about, what i understand, clock is ticking on accruing interest. You can let that happen, not paying another year. People will be wood into the political thing. Vote for these folk. S. They will go again around the Supreme Court and not pay. On credit card bills and everything else, accrue interest and get hit with a harder bigger bill a year from now. Not enough people are talking about the perverse incentive for young people to sign loans at this point in time might not be wise. If they foregift it once, they are give it twice, certainly in the future that is the exact wrong missage we send to Young Americans who need to learn fiscal responsibility. Charles it is so sad. The Life Expectancy for a 25yearold with a College Degree is another 58 years. For 25yearold who doesnt have a College Degree, only 50 years. Why do they need there . It is a damn shame theyre even pushing this. I have to ask you about one more thing. Yep. Charles listen there is so much going on but President Biden criticizes misinformation on x, formerly twitter and theyre watching the company closely. I get really asprayed the government is sayingth watching companies over thought. This is the thought police. In every company, i dont care who you are, you should be afraid, particularly in a Free Market Society when the government says they have want to make sure you dont think the wrong way. Yeah, absolutely. What is misinformation . Just a couple years ago the lab leak theory, myocarditis in young men from the vaccine, things we say are at leftmostable, if not probable were socalled misinformation. I think the Biden Administration needs to be very careful right now. They lost a major court case do a doctor, who were able to prove jawboned social Media Companies censoring on their behalf and violating the first amendment. Anything they do to really step on xms tease. I dont think care about the judicial system. Ill really concerned about the three separate but equal branches of government, the white house says they dont care. Congress is imploding so what can you say. Rikki, thank you very much. Thank you. Charles my response to a very passionate letter i received today. I think it represents what a whole lot of people are feeling. I responded to the letter. I will share the thoughts with you. You dont want to miss it. Its not just designed to look good. Its built to command attention. Its not just a comfortable interior. Its a quiet refuge. Theyre not just headlights. They light the way forward. The new fully electric audi q8 etron models. This is your season to smile to gather together and discover the moments that matter, to jump into the fun and join in the celebration. To help get you ready, your aspen dental team is celebrating 25 years of Affordable Care with an epic anniversary savings event. Right now, new patients without insurance get a free full exam and xrays. Plus, everyone can get 20 off their treatment plan. But hurry, because while the season wont last, the memories you make together will. Aspen dental. Book today. We really dont want people to think of feeding food like ours is spoiling their dogs. Good, real food is simple. It looks like food, it smells like food, its what dogs are supposed to be eating. No living being should ever eat processed food for every single meal of their life. Its amazing to me how many people write in about their dogs changing for the better. The farmers dog is just our way to help people take care of them. Charles well, its to longer an elephant in the room, right in its in all corners of the room, this jena laze. Its not, of course, just even in the stock market or the economy. The fact that i received an email this morning from a viewer of the show that says, charles, do you think the recession is already baked in, to repeat a wornout phrase . Im 70, and ive never seen anything like this. Everyone on strike, shortages of products, no one wants to work, especially young folks. If for not uncontrolled migration, we would have already collapsed. This is from kenneth. By the way, i sent you a reply. I didnt get a chance to beef it up. I said, obviously, the its a great question. Im not sure if a nearterm recession is already baked in, but the economy is cyclical, so there will be more recessions. The bigger question for me is, when. I agree with the notion that many people do not want to work, especially younger folks that were paying a whole lot of money to chill out, and now they live in cities where theyre allowed to loot. Who would go to work . Not sure about the line of the the uncontrolled migration, if youre saying it helps or hurts. I didnt get a chance to add data or charts, but i want you to take a look, for instance, at labor participation. It has been trending down for several decades. Its become clear though that the pace, more people now are starting to have more jobs, right, multiple jobs. People are working more and more jobs, theyre having to hit the bricks. So theyre finding not just one job, they have to find two jobs. People have to work whether they want to or not. As for the stoppages at the current level, not even close to past levels of workers. Over 400,000 in 19. 1974. Its always associated with big spikes in inflation. Now, these are not insurmountable, but we do need leadership. And it doesnt seem like political opponents, you know, are out there willing to do this, right . Congress is a mess, the white house is focused on an agenda that actually calls its opponents terrorists. So just one thing everyone should have to remember, right . Just really be a acutely aware of who we are and how we became the greatest nation on earth. We have seen all these obstacles before. We dont take for granted that we will overcome it, but i have a strong feeling that we can and we will. Cheryl, over to you. Cheryl charles, im glad you brought up what jobs are being created, because theyre not the types of jobs that the economy really needs to the se