Cant be sustained as the chart continues to make higher lows indicative of a bear market now that prices plunged again down over 24 percent hitting an 18 year low as the lock down to counter the pandemic resulted in an even greater demand shock than previously expected saudi arabia is contained just broad broad record high oil is of true 12300000. 00 Barrels Per Day over the upcoming months despite the slump in demand now as saudi and russia contain a battle for market share Goldman Sachs is forecasting a full to as low as 20. 00 in the 2nd quarter there doesnt seem to be anywhere to hide in this market accepting cash gold continues to be under pressure down over 2 percent as battered investor took to unwind damage positions and reduce leverage bitcoin on the other hand looks to be doing exactly what it was made to do as it is unscathed by the volatility this week holding its support level above 5000 proving itself to be the perfect asset in a financial crisis the Trump Administration is now. Discussing a plan of as much as 1. 00 trillion dollars in spending including direct payments of a 1000. 00 or more to americans within 2 weeks in order to blunt some of the Economic Impacts but the Market Reaction so far continues to say that this is not enough now kristie i do have to ask and i think this is the real question that were all looking at right now we obviously dont know how long the coronavirus pandemic will continue but the real question is how long will this economic turmoil continue because it seems to me that its going to be well beyond what happens with the coronavirus. It is because if you look at the demand this kind of theres a huge demand shock right now in the oil sector and then flights with an industrial component in general and one them in the u. S. Being 70 Percent Service sector this is a cute blow to the economy with a very long tail so even if the say the pandemic is controlled by july and august of this year as expected then there still going to be a long tail because we will see unemployment drop productivity drop and that that activity is not going to pick up in a v. Shape correction as many economists have predicted boom bust cohost christine thank you so much for joining us well talk to you again very soon about exactly this. Thank you. As christi just mentioned the possibility of governmental stimulus doing what it needed to prop markets as they continue to crater so lets get some more expert analysis as we are joined by tobin smith field trips for the research so been great to have you on the show i really appreciate your time today how much of this crash if thats really what you want to call it has to do with the coronavirus pandemic we know oil is hurting we know airlines are hurting and and what its bad its right across the board these days so what do you make of all of this. Well i mean i 1st got to get the context right i think in the context is a pandemic is one thats a health shock the 2nd is the debt market shock because now we have to figure out how long is not going to last but remember we borrowed 30 trillion dollars in the government and the private sector with free money and so now the bubble is bursting because the 3rd part of the context to get it right is the government and frankly i dont care the lover hate President Trump but he has completely blown this and by by essentially getting people to feel everythings ok over the ok and then just dropping the bomb now we have real fear and fear is just just contagious as coronavirus well and it is interesting because i mean when you look at this you hope everybody gets on the right track and in like you said i mean maybe he blew it by a by saying that it wasnt as big of a deal as i guess he thinks it is now so itll be interesting to see how this whole thing plays out because theyre still only saying well itll be a 2 week quarantine were going to get a hold of this do we know that we have absolutely no idea. Right but again you know your previous guest talked about we have a 500000000000. 00 payroll every quarter for the Services Industry so the idea that we can say to a couple of 1000. 00 checks out to people is insane and i just telling your audience that they have to understand that the biggest financial bubble we always saw it was 20082009 today we have 4 times as much debt so that has to get repriced in and this is a financial disaster as a Health Disaster as an Economic Disaster is like we got 3 neutron bombs dropped on us 1st obviously we got to corona virus and the pandemic then we got the oil pandemic to do oil neutron bomb a price war during a pandemic are you kidding me and then the 3rd is the government sitting around doing sort of half measures when when weve essentially had a virtual economic attack and were coming with a you know. A water gun we need a bazooka and i know its interesting that you mention those checks going out to americans because it seems when you talk about sending a 1000. 00 check or however much youre going to send per you know bracket depending on what you get paid of course but when you talk about setting those checks out generally stimulus checks to stimulate the economy in a way of they can go to local businesses you can pay for it what it doesnt help with is when youre talking about paying your credit card bill paying just in utility bill and hang your rent and thats what these checks are going to be used for especially for those who are out of work those who are still in a job are actually doing well because they cant go out they cant spend the money they have so if you cant spend the money how is the stimulus check going to work well right i mean its essentially reverse logic right but again thats sort of endemic of of the approach theyre taking here youve got to get the metaphor right and theyre they look at this as if its you know of the root literally is what trump said. You look at it you know by spring its going to magically disappear and blah blah blah blah blah well thats not literally physically possible at this point the you know the cow has left the barn on this so now we have to go through a global repricing i was very involved in the 2008 financial crisis and work with senators other folks and you know the one thing that i like most people missed the move by the fed on sunday had nothing to do with the stock market that was about the banks the Bank Plumbing was stuck and if they had to mark down some of the assets they had on monday it would have been just like 2008 they would have been insolvent so people who were more sophisticated as sophisticated and i cant say he said about you know the financial world knew that that was all about the banks then when trump came in we came to a 2nd day and we sort of said mumbly probably you know probably go to you know maybe july or august i hear people say well you know a lot of people particularly people who listen to right when you know media they really thought it was going to end magically disappear in april so then that through another fear bomb and thats another tape and then oil under 30 and now it 20 these tape bombs have equal reactions from various sides of the world for instance today the 20 year in the 10 year Treasury Bill moved ive never seen a like that it moved from a half a percent to 1. 3 percent and back to you know 65 basis points all in one day that wouldnt happen in a year or 2 years but whats happening is that all this stuff is connected if im selling off my stocks i dont need all those you know 10 year t. Bills as collateral for my borrowing so is ideal leverage all of a sudden that goes up but when that goes up then i sell all my stuff down and somebody elses hedge that and blah blah blah so we have a downward vicious circle this is a negative feedback loop and it doesnt stop with. A b. B. Gun it stops with the fed coming in and buying a trillion dollars for the. Boom it ends it comes in with the essentially credit lines you know a credit card to fake credit card number real credit cards that go would that you can spend to pay rent he said or because to your point if im just taking a 1000 bucks and im giving it to my landlord i dont doing anything about stimulating thats just simply about you know keeping the status quo but when a Service Economy we have way too many people that are going to be out of work as you said its about keeping your head above water its not about stimulating at a reading and who are quick and it seems like the despite all of all of this fed intervention which you just talked about you know its not doing anything and that fact every time they do something it gets worse then we get that little bit about and then what happens it goes even further down so well know that like you said that bubble is ready to pop i mean do we its weekly we got about 30 seconds here do we have a recession i mean is it coming now. Were already in recession this is going to be about a negative 3 to 4 percent q 2 negative 2 percent q 3 we have to fight against it i just cant emphasize this enough is that we dont move to depression because all the moving parts to depression have lined up and if we big one more mistake one more policy mistake like you know the fed coming on sunday all that tells people is oh my god what do they do that i dont know sell and now we have computerized trading thats almost 80 percent of the market we never had that before and so they are going to keep saying sell until we see big movement not just a little blip junk were doing here we need a big bomb we need it now we need to deliberate we have to have a neutron bomb that offsets the neutron bombs have been. Exploded into our system i dont want to be you know scary for you but ladies and gentlemen thats thats the truth and if you dont think were going to have an s. And p. 6100 maybe 200 by the end of this youre youre smoking the same dope the president is absolute toben smith he mentioned the d. Word depression c. E. O. Of Transformative Research well have you back i love your take thank you so much for your time. And the World Health Organization had the old task of announcing a major milestone in the spread of the corona virus. More than 200000 cases of 19 have been reported to deadly and more than 8000 people have lost their lives. And more than 80 percent of all cases from 2 regions the west and pacifist and europe we know that many countries now face a pita mix and feeley overwhelmed italy remains the country most affected by the virus outside of china seemingly adding thousands of cases by the day the death toll in italy alone will soon surpassed 3000 iran is still fighting to control the spread with more than 17000 cases spain and germany have also had an increased number of cases in recent days adding nearly 2000 each and here in the us officials have announced cases in each of the 50 states earlier in the news with rick sanchez spoke with chichen a Public Health specialist at Yale University about the concerns over the spread of the virus. We already passed the stage of accounting and now we can only do mitigation that means there is already a largescale coming 80 transmission so eventually like according to estimates from us from u. K. People eventually we get this. Question isa holosuite we will get that we are making a huge difference. And time now for a quick break but hang here because when we return amid the drop in travel the Aviation Industry has been slammed but now some manufacturers are asking for a bailout will break down the harsh beating the sector is take it and as we go to break here those bloody numbers at the close. Blushes and thanks to the cica total more than the bleach he cut a hole close to each seam youre set its not that its indeed some chances that always sting against. Yet im. Beautiful to go see it i said included. A use of it i was going to have to be skinny to show. For it to leave you families. Given to us but to the search is just tell them not to be some poor summed up by. The mummy approachable british mr worst imo sure because. Each simulating civilization would be able to run using a tiny fraction of its resources. Hundreds of thousands millions of runs through all of Human History almost all. Beings with our kinds of experiences for them to simulate the balance rather than non simulated ones and conditional on that there are good we should think fearful that one of the simulated ones. Of the. The super cool course will put a little track to. Use new york at the saw on the check the star will ensure the city achieved feel ok and i mean the streets full well for you to know i dont need to know his name before bush but i will. Sure i mean you know. And as we have covered in recent days the movement of people across borders is continuing to be restricted wednesday morning the u. S. And canada i know its the closure of the worlds longest border to nonessential travel the president as you all are were also announced today that by Mutual Consent of the northern border to canada will be closed to non essential travel this does not include essential travel or the transit of goods also late tuesday german chancellor Angela Merkel announced an agreement among e. U. Leaders to ban entry into the block. We discuss various topics i have today the 1st was that we all agree with the proposal of the commission of. 5 countries that are there members of the European Union are. You know or Great Britain we should impose restrictions which means basically a ban on one entry except for very very limited exceptions this must be implemented by the Member States to apply for 30 days r. T. Correspondent sire. Has been following border closures and restrictions and files this report. Countries around the world are taking drastic measures and an attempt to curb the spread of the covered 19 pandemic with more travel restrictions being announced stanley and travelers across the world us grambling to find flights home as governments are urging their citizens to return and until tuesday much of the European Union was initially resistant to curbing travel and at times blaming one another for its spread but the European Union has now taken a 1st major coordinated response to the virus the latest to join the list aboard a closure u. S. And canada president to go to twitter this morning to announce to travel restrictions President Trump also made it clear that although the decision would not affect the flow of trade between the 2 countries that the u. S. Would be by Mutual Consent temporarily closing the northern border with canada to nonessential traffic part of the discussions involve what types of vehicles and a vigil is would still be allowed to travel between the 2 countries and for what purpose as restrictions will likely allow for significant flexibility since cannon are relies on the u. S. For 75 percent of its exports and unlike travel restrictions on europe and china this was a mutual agreement between the 2 countries as both countries take aggressive measures to block their spread of the virus while maintaining their economic relationship canadian Prime MinisterJustin Trudeau who is currently in self isolation after his wife sophie tested positive for the coronavirus announced earlier this week that effective today he would be closing the countrys borders but exempted u. S. Citizens canadian citizens and permanent residents. And with almost 8000. 00 deaths worldwide and no vaccination inside the world is taking sweeping measures to stop the spread of the virus shutting down airports imposing travel restrictions and completely sealing borders seems to be the only way added moment to contain the spread of the virus experts are also urging people to practice social distancing essentially avoiding other people whenever possible which is a proven way to slow pandemics and no one really knows for sure how long social distancing will have to last to reduce the spread to near 0 but if south korea and china appropriate examples will need to stay apart fradd least and rakes reporting from site tavenner r. T. And when the issue of government bailouts comes up it seems like everybody has their hand out and while the corona virus has hit Many Industries the Airline Industry is asking for an especially large boost boeing is calling on the Trump Administration to provide a bailout of the Airline Industry at the tune of 60000000000. 00 reuters 1st reported that boeing was seeking tens of billions of dollars in u. S. Government loan guarantees and other assistance as it faces a looming liquidity crunch due to the coronaviruses impact on the sector boeing spokesman Gordon Johndroe says the Company Quote supports a minimum of 60000000000. 00 in access to public and private liquidity including loan guarantees for the Aerospace Manufacturing industries and joining us now to discuss this is a school bus cohost and investigative journalist ben swan ben thank you so much for joining me today boeing says that typically 70 percent of its revenue flows to its 17000 suppliers and has told lawmakers that without significant insistence the entire u. S. Aviation Manufacturing Sector could actually collapse due to this pandemic is the company right and how badly. Is bailout actually needed yes so the company is right in terms of the Airline Industry is facing significant pain as you know right now because of the lack of travel boeing is asking for 60000000000. 00 the reality is theyre getting at least 50000000000 headed to the Airline Industry the Drug Administration talking about this stimulus package now one trillion brand as you know and of that one trillion there sitting beside 50000000000 of it specifically for the Airline Industry but boeing in and of itself is kind of a joke in that look theyre very important to the Airline Sector but we all know that they cant just look back at the coronavirus and say thats the problem were facing boeing is facing a problem with that so making with the 737 max jets which were not even in line to be given a green light to go back into operation 2 at least this summer thats probably pushed back down to the end of the year so you know boeing is facing a lot of hardships of its own making in addition to the issues with the coronavirus but again the german ministration has said theyre going to bail out the Airline Industry and it looks like about 50000000000. 00 is going to go to the airline street but its interesting that you say that like oh maybe all of these dont have to do with this specifically the coronavirus epidemic because weve seen that through it with a lot of companies actually making those same complaints were saying oh this is really hurting us and if you look at the numbers a person pretty bad before the 737 max crisis did not help them at all boeings biggest competitor and european based air bus has closed its factories for around 4 days now but unions are pushing the factories to stay closed longer will this actually happened. Yeah thats kind of a tough spot for airbus because theyre in the exact opposite position the boeing which is kind of interesting because in airbus is case theyve picked up all the clients that but we didnt have them remember you know when you get a contract to build one of these jet liners those come sometimes years out where theyll line up these contracts so airbus needs to keep its employees working they say theyre going to close down for a couple of days as you mentioned 4 to 5 the unions want them to be close for a few weeks but again this comes down to whether or not you know air bus can keep up with the contracts that it has so im sure theres going to be some back and forth push between the 2 between the unions and air busted to keep it moving but its in everybodys best interest to keep as many planes being created as possible because they keep selling those while boeing is pretty much incapacitated right now youd be interesting its interesting to me that anybody is actually buying planes right now you would think that all of these air things would would not be able to have the cash flow to actually buy more and i know there are a 380. 00 is also out and rough waters because its already having a tough time just making ends meet when its traveling at full capacity so well see what happens there but oh i dont. Remember real quick with airbus in those those contracts i mean those are done you know sometimes months or years in advance and theyll have hundreds of planes of them already been paid for that they have to now supply absolutely no overall the travel and Hospitality Industry is really being hit hard in fact many are saying this is the biggest test that the modern travel industry has ever faced without some kind of intervention from the government much of the travel industry collapsing at about 30 seconds here but you have real quick i think that theyre going to get theyre going to get the intervention right or wrong we can have that debate we have more time but theyre going to get it again 50000000000. 00 is going to the Airline Industry trouble ministrations as 150000000000. 00 is going to go to things like hotels and Service Industries that are being affected right now thats where the money is going to flow the question is will it do we nuff because a lot of this city this package is only supposed to last about 6 weeks and we have to get back to normal life by that who knows if we will absolutely thank you so much boom bust cohost to ben swan well talk to you again soon. And finally as the worlds population continues to follow the overwhelming amount of news regarding the coronavirus pandemic and the economic turmoil it has caused some of the latest announcements and tech are receiving a ton of attention and maybe thats right please so for instance wednesday morning apple unveiled a brand new model in their i pad pro and macbook air lines the big feature apple is touting is but their new i pad involves a new camera feature which feature which allows the device to scan 3 d. Objects the company says it will allow for a quote whole new class of augmented reality experiences an area apple has actually invested quite a bit of money into wednesday sony held an online event also revealing the details of their competing for their new console the playstation 5 and earlier this week microsoft released a boatload of specifications about their new x. Box one series x. Console that competes with the playstation i could spend time talking about the Processor Speed graphics engines or ram but for now lets just enjoy some of the visuals that theyve put out both councils are expected to come out this Holiday Season now obviously video games are a crucial sector during economic struggles but let me throw some interesting numbers at you steam a very popular digital p. C. Gaming platform reported saturday they had a record of nearly 20000000 concurrent users as gamers were forced to stay inside following the release of the new free to play Battle Royale title in the call of duty franchise publisher Activision Blizzard said the game reached a 15000000 players in just 4 days think about that thats it for this time you can catch a boom bust on demand on the brand new portable t. V. App available on smartphones through google play and the Apple App Store by searching portable t. V. Or stream us to your t. V. By downloading the portable t. V. App on apple t. V. And online at fordable dot tv and you can also find our coronavirus tracker on the portable t. V. Ad where you can get the latest news and information about the spread of the virus and as always be sure to check us out at youtube dot com slash boom bust r. T. The next time. So what weve got to do is identify the threats that we have its crazy one sunday shouldnt let it be an arms race off and spearing dramatic to follow only closely im going to resist i dont see how that strategy will be successful very critical time to sit down and talk. You are no offense but you no longer a young woman in fact you are one of the last living survivors of the nazi ellis asked im aware of it. All you like. You can never forget maybe you can now auschwitz was really like to be inhaled because he would never believe it was a human can do to as a hobby horse for 32 years and open the cupboard it. Seems so logical for my side to make it right when i get out on the farm saw you dont want to take my song to her next do so you can listen and hopefully bless my heart hurts. Every single elapsing against the column so how long will that last probably not a long time because. As weve seen during brain woods or through the plaza toward of the 1980 s. Theres going to have to be a global coordinated sit down to rearrange the global 4 x. Market rearrange the global currency grid and the dollar is not the thing theyre going to have to match against because. That runaway bally when the dollar is whats causing this deflation and thats whats causing the cold depression part to. Show small seemed wrong. But old rules just dont hold. Any old belief yet to shape our disdain comes to agitate and in games from an equals betrayal. When so many find themselves worlds apart we choose to look for common ground. Join me every thursday on the alex im unsure and ill be speaking to get a little world of politics sports business im show business ill see you then. A new hospital for coronavirus patients is being built on the. Stricter measures for the spread of the virus point correspondent checks out the level of panic in russian supermarkets. Turn now to a particularly sensitive subject lately toilet paper while. Any type of budget any type of. This clearly enough for everyone. In the u. S. Several states announce that theyve postponed primaries to contain the Coronavirus Spread the National DemocraticNational Committee warning of possible penalties. 19 aggressively spreads across the u. K. A nurse claims