Transcripts For RT Boom Bust 20240713

Is putting money on hold we have a packed show for you today but lets start by tracking the coronavirus. The global the toll for the crown a virus now at nearly 20000 with more than 430000 come from cases the World Health Organization recommended 6 actions that all government should take to prevent the spread of the coven 19 birds expire on. Your who is clear and probably go to work force and. Implement a system to fly every suspect to a community level. Production capacity. Of testing. For the i didnt adopt coupons you need to see you will use to treat. Patients the last 2 actions were to develop a clear plan for those who are quarantined and then refocusing government on suppressing the virus well europe still the epicenter of the covert 19 as italy saw an increase once again in its death toll this after 2 similar days of numbers suggesting that the worst may not be over for the country spain also recorded a higher number of deaths with a total of 3434 this is the 2nd highest death toll in the world and the 2nd worst hit country in europe following italy and germany now has more than 35000 cases and a low number of only 181 deaths but even with a comparatively low death toll president of germanys robert Coach Institute the National Agency for Disease Control and prevention said that its preparing for the worse. As of march 25th 3155419 cases have been confirmed the number of cases rose by 4100 that need seem in comparison to the previous day were talking about the cases that have been submitted electronically through the system of the rubber coated institutes death toll has risen to 14935 more in the previous days the actual number is 35 cases per 100000 citizens in germany right now as expected the number of cases has been growing and we are standing just at the beginning of an epidemic some in numbers are growing now i want to show you where restrictions have been tougher in some countries over others with nearly one 3rd of the worlds population under some constraints there is india one of the latest to extend a National Lockdown joining italy france spain belgium the u. K. And new zealand than china iran the United States canada germany austria portugal russia australia and even israel all partially shut down but this could follow full lockdown if the number of cases continue to grow exponentially now of these countries german lawmakers are voting on economic aid the u. K. Also outlining plans for that aid as well as canada and russia and the European Union also looking for ways to mitigate the Economic Impact but this while the u. S. Is set to pass a nearly 2 trillion dollars stimulus package new yorker means the epicenter of the United States outbreak where cases are doubling every 3 days state Governor Andrew Cuomo says the senate bill wont be anough especially because at the current projection its peak wont be reached for another 21 days new york City Hospitals are already facing a surge in patients without enough workers as Governor Cuomo makes his plea for even more supplies will President Trump responded to his request to get twitter where he said. Hes working very hard to help new york city and state adding fake news that i wont help because i dont like cuomo i i do just sent 4000 ventilators now for more numbers and information on the coronavirus be sure to check out our portable top t. V. s and look for the section at trucking coronavirus but for more Market Analysis please ring and boom bust cohost christine kristie. Now futures pared gains overnight as the white house and senate struck an agreement on the historic 2 trillion dollar deal to aid the economy and face the coronavirus the brief pullback came as a bill would ban stock buybacks for the term of the government assistance plus one year on any company that received a government loan from the bill as the market digested the new sentiment quickly turn positive as the market accepted it and then there was no new incremental punishment and that companys doing buybacks the u. S. Equity market finally turn around and post its 1st act of ag ains and the chronic crisis began with the dow up over 5 percent following its historic 11 percent surged. Names like chevron and exxon rally double digits along with airlines automakers and homebuilders the in the charge but how long before this down the sold off right now the stimulus measures are moving the markets on sentiment which is much faster than underlying fundamentals which would take more time to rebound so now lets talk about this bill this bill worth roughly 10 percent of the total u. S. Output is primarily aimed at stabilizing key National Industries to prevent as many layoffs as possible now in addition to the 500000000000. 00 going towards big businesses and the 350000000000. 00 going towards Small Businesses there will also now be a 30000000000. 00 in Emergency Education funding 25000000000. 00 in transit funding and 30000000000. 00 for the Disaster Relief Fund Unemployment insurance will be extended to 4 months an increase to 600. 00 per week with most workers eligible for coverage but it is still too early for a celebration right now as democrat led house is now delaying the spot for no reason at all until tomorrow spite this being a matter of most urgency one of the last details to close now revolt on the 500000000000. 00 for a guaranteed subsidized loans to airlines and hospitals but even as the song and dance politics are coming to an end comes the really hard part the implementation and the execution the focus for investors now shift to when the funds will be disbursed and how fast millions of workers have already lost jobs in recent weeks and coming. Are unable to operate but even as the markets rally and sentiment seems to have improved today one of the biggest questions on everyones mind is was this the correct move history has shown that the government always used a crisis from the civil war to the Great Depression in order to expand its power not only during the emergency but also afterwards the u. S. Spends just short of 5 trillion dollars a year and yet it was woefully ill prepared for this crisis and now in the middle of this crisis in the middle of implementing a stimulus package you know politicians see an opportunity that cannot be wasted in advancing some sort of agenda this expansion of Government Authority is dangerous but in short it is what we created and are must be responsible for now well Chris Christie a companies that binge on stock buybacks for example boeing and Southwest Airlines theyre now seeking taxpayer bailouts just to keep them alive now is this going to cause more restrictions in the future for these buybacks. Thats actually why the futures dipped overnight because all the investors were afraid that there will be futures punishments for these companies but now according to the current techs that theyve been chewed up there is no incremental punishment aimed at these companies to be purchasing their stocks so a lot that means this with the trillions injected into this cut economy everyone will essentially benefit from the feds liquidity not just the Companies Directly receiving the government loan so basically currently as it stands when all this is over if there is no new legislation issued the Record Number of buybacks will explode even higher as every Single Company will do everything in their power to recover precrisis levels now thats been a bipartisan issue these buyback so well see what happens in the near future because im sure that will be affected boom bust cohost christi i thank you. Now for more on all of this and what this means for the Global Economy were joined by Professor Emeritus at the university of massachusetts amherst and host of economic of date richard. Thank you so much for the time theres a lot to get into this the volatile market a lot has happened in the last 48 hours alone now i want to start by asking you st louis fed president James Bullard hes been very vocal lately appeared and the media almost every day you could say well he said the economy will take a huge short term head but it will essentially bounce right back up now this is after he just said that the unemployment what skyrocket to 30 percent now to be clear thats worst than during the Great Depression in 1033. 00 it was about 25 percent now is this bounce back going to happen or are we going to see more of an al shaped recovery. The answer the honest answer is that nobody knows and amazed that mr willard would be as confident about such an iffy proposition as he seems to be it would be nice to believe all of that but theres no historical basis for doing it let me pick up on one point you made in 1033 the depths of the Great Depression unemployment was registered at its peak of 25 percent if mr bullet is right and there are others who were agree with it we are going to have a worse condition on the employment now when unemployment goes up a little more like this every conceivable still szell raglan we have a little child that you did poorest you name it goes with it thats one of the reasons you cant i have to believe predict the next fall out of all of this everything that government has done since we 1st learned about the a coronavirus in december of last year has been too little and way too late and my judgment as best i can see it now is that this bill assumably in the form it takes one. Will also be true. Little and julie well a lot of people are saying like you just said it too little too late including a lot of the closures but i want to get back to something you said we have been talking about the Great Depression people were throwing out the r word the recession before that a lot of commentators a lot of analysts now using depression not just recession but a possible depression like youre saying now is this something that you think will actually happen. I think its already underway i think at this point the only debate which we can answer is how deep it will go and how long it will last you turn are good in the economy under this kind of stress which is a matter of life and death for millions of people with a government obviously unprepared with a private sector of medical care utterly understaffed underprepared we still dont have the tests in many parts of the country even germany where the risk is where its growing let alone the capacity to 0 if you put this kind of an economic career. On top of held exist or like theres no one can predict where its going on or that theres a we are the early stages of the very serious crises in his overalls just the mini and the United States hasnt even seen the peak yet so what that will do the economy time will only tell but i do want to ask you about the Federal Reserve they Just Announced they continue to make moves of their own announcing its going to suspend some of its supervisory activities of certain banks so that they can be more flexible in the way that they actually help their customers could this lead to banks taking some unnecessary risks. Absolutely has done that every other time aig the amount of money being thrown at the banks is own precedents and now do. As if it were necessary that theres going to be less supervision right these are the things let me remind you these are the same going through over the last 13 years a bit. And billions of dollars leader for violating every rule that if i do cherie or a Banking Institution is supposed to trust them with less supervision when you throw. A little money thats a government that has a lab in any claim that the respect there. Really said it was supposed to go over well this definitely will be a huge risk and like you said time will only tell unfortunately we dont know how much of that we actually have before this pandemic reaches its peak here in the United States like were seeing across europe host of the economic update Richard Wolfe thank you so much for your time and expertise my pleasure thank you. Vehicle production for top u. S. Automakers may be shut down well into april now this is according to reuters ford a General Motors and chrysler all say the original plan to restart plants on march 30th is highly unlikely michigans Governor Gretchen Whitmer has banned nonessential businesses from operating until at least april 13th but the report says what more has not said whether or not auto production is considered essential meanwhile a number of factory workers tell n. B. C. News plants should have been shut down even sooner than last week now some of the employees say the nature of their workforces them to actually be within recommended 6 feet for social distancing and surfaces are difficult to disinfect all 3 automakers have had employees test positive for the coven 19 but deny any wrongdoing United Auto Workers Union President rory gamble says we are doing all that we can to protect our health and safety during this pandemic. Time for a quick break but well be right back when we return and well tell you why bowing out wants a bailout here the number thought that both. From donald trump in 2016 to tulsa gobert in 2020 there is part of the electorate that responds to antiwar anti interventionist rhetoric in fact there is evidence this significantly helped get trampled like that but the fact remains the establishment is keen to downplay and even demonize any candidate who questions policy orthodoxies why use this. Trade and investment to become metrics bills to come to economic development. Most people think about trade they think about goods and services being exchanged between countries and the investor a chapter of a trade agreement as opposed to something very different but wont when investment leads to toxic manufacturing that destroys sacred sites old ruins the environment. That means if local communities that are being poisoned the thing object if they do anything that the company feels is interrupting their profits they conducive. To taking on the whole nation Philip Morris is trying to use i. S. T. s to stop tour of the way from implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt resists minimum wage democratic choice trump. Joined us as we try to fund dont want to. Max keiser financial Survival Guide stacey south fill out lets say im the troika and here. The fight 9 street hot thank you for. The story thats right. The debt slavery. In the midst of the congresss 2 trillion dollar economic bailout there are Certain Industries that have been clamoring for hope among those is the Airline Industry and among the calls for a bailout help has been us Aerospace Company boeing the boeing c. E. O. Is now making clear that he does not want the u. S. Government to take an equity stake in the company as part of any bailout well during an interview on fox business boeing c. E. O. David calhoun said i dont have a need for an equity stake i want them to support the credit markets provide liquidity allow us to borrow against our future which we all believe in very strongly and i think our creditors will too well joining us now to discuss cohost and investigative journalist ben swan ben boeings always on the headlines these days isnt it well president. President making clear that its important to support the Airline Industry and including boeing which is also the nations largest exporter calhoun now saying that this bailout is not corporate welfare and instead its the role of the government to help them now is that even a fair statement and how much money is going asking for ok so how much money is going out before how about 60000000000. 00 theyre asking for which is an unbelievable amount of money but as to the question as to whether or not its the hes right that its the governments role no its not it is not the governments role to bail out companies that are falling apart it doesnt matter how important those companies are ultimately to the nations largest exporter no matter how many people they employ and wonder how many jobs are connected to them it doesnt matter it is not the governments role to bail out companies now. Said that 2 trillion dollars has been approved by the senate essentially to do exactly that to bail out u. S. Workers in theory and to bail out some corporations and a lot of that money as you know where its going to go to the Airline Industry on a lot of levels but boeing lets be honest boeing is not an example of a company that was hit hard by the coronavirus go in is an example of a company that had already failed by creating a 737 max jet that crashed twice killed over 300 people and it was unable to sell jets because the main one the f. A. A. Has not approved of them flying those jets and there were 2 airlines dont want to use their chips right and the company like you said was already failing a lot of people really lost trust in boeing after that but speaking of the 737 max boeing says it plans to restart its production by may thats ending month long haul triggered by a safety ban on its best selling jet right so that is an earlier timeline that had been expected now is that timeline even realistic. Well so its i dont think it is realistic 1st of all especially considering right now with the climate that were in consider the fact that boeing essentially came out and said that they saw the. 737 that should be recertified by april thats why theyre saying its been pushed back to may it has been pushed back to may because the f. A. A. Was saying its not going to happen to at least sometime in the summer so that boeing thats making the claims about the timeline but then again why shouldnt we believe them boeing employees were the ones who were making fun of the f. A. A. Making fun of oversight at one point before these jets crashed because they dont feel like they have to respond to the f. A. A. Right we thought that they they were expecting and by now theyre pushing that date to may well we have about a minute left but i want to ask among those asking for the federal bailout is the private jet and 3 well the National Business Aviation Association which represents private companies and corporate jets sent a letter to congressional leaders saying that their industry is facing financial uncertainty should the private jet industry even be included in this airline or aviation bailout so at 1st blush i think most people would look at that and say absolutely not its obscene and ridiculous that private jets that only wealthy people in corporate jets would be bailed out thats insane but at the same time i think you can also make an argument why wouldnt they be along with everyone else because why is it the taxpayers responsibility to keep delta of float southwest afloat or boeing afloat so if youre going to keep all those others afloat why not keep them afloat i dont agree with any of it i dont i dont like any of that getting bailed out but certainly i think the majority of people will look at the idea of the private jet industry is being bailed out and think its not only laughable but its obscene but i guess one could argue the other side too and say that these are considered technically a Small Business one could say for these are absolutely Small Businesses for these and and if you and if youre going to bail out other Small Businesses why wouldnt they be included as well i think its the idea that only the wealthy use them and therefore give it will get that rap but at the same time i think a lot of people would look at it and say if youre being honest i have a lot of rallies who are. Pilots thats understandable to oh well the invesco month pencil and thank you for your insight. Thanks for. All the World Health Organization is urging countries to step up testing for the krona virus the United States is still struggling to get people tested more than 2 months after the 1st case was confirmed here well some people have even turned to home testing kits but now the feds have put a stop to selling those legal journalist molly barrows there with American Lawyer has more on just why whats the problem with these home testing kit. Hi sarah well the f. D. A. In a nutshell said hey were not sure if we can trust the results of your test because there are some differences in this home swab test kit approach as would be in say certified medical lab they use a longer qtip if you will to really get up in there if thats a picture you want in your head in the home setting kids have a smaller swab and they basically want to make sure that when they get the results that theyre going to be as effective or that theyll be able to be believed if you will so thats the problem with them testing kits thats why the f. D. A. Sent out a warning letter to 2 companies in particular and some other companies that were start ups essentially 2 out of San Francisco trying to market these to people saying hey we know theres a problem of testing with a plan to send out thousands until the f. D. A. Sent out this letter and telling them to hold up well what are the chances that they will eventually be able to use these tests. Hopefully pretty good now the company wont come out and say it was 2 out of San Francisco that have brought primarily been the focus norks and Carbon Health and in fact one of those tests was about 160 770. 00 somewhere in there so youre talking about thousands of tests they were going to roll out for that cost they did have some customers take them and so there are those test results they say theyve asked to be expedited but theyre not taking any more tests right now they say they are in communication those are what the f. D. A. So its possible. If the f. D. A. Rather gives them the go ahead that they can go ahead and remarket those because part of the approach was to deal with that shortage of test kits the lack of access to testing that we had been seeing why are more people actually getting it getting tested now here in the United States and what other steps are being taken in the lab to come about the virus. Yes so we have seen a surge in testing for a number of reasons basically they had to cut through a lot of government red tape which was part of the slowing of the process in the in the beginning so more people are getting tested more private labs are part of the process hospitals that sort of thing so people are still struggling here and there but they definitely are finally getting some tests when they need them turkey in fact sent 500000 tests at the request of the United States youve got india that just came forward with a 3. 00 inexpensive test kit they can get test results quickly but part of the problem is not everybody still has access to those test kits and even theres a shortage of testing materials so one of the other ways that labs are combating it though is by finding an antibody weve got a few medical companies and academic labs here in the United States that are working to identify people that have basically built up an immunity if theyve got those antibodies theyre not showing symptoms theyre not sick then hey we can identify who can get back to work and who can get our economy and i know theyre using those in new york and california and all hands on deck to get those tests out molly barrows contributor with americas lawyer thank you for your time. Thanks theyre. Staying at home to stop the spread of the coronavirus is something serious but now its also a game so if you like some competition its time to play the abs only which is owned by snap chat is using location data to keep track of those doing the best at social distancing now before the app would let you check into your favorite meeting spots or help you even find friends but in a twist to keep you at home theres a leader board now to see who among your friends is number one at staying put certainly also offers an option to scan the globe of your country to see how many come from corona cases there are now giving you a little extra motivation to stay inside and thats it for this time but you can catch boom bust on demand on the brand new portable t. V. App available on Smartphones Google play and the Apple App Store by searching for double t. V. Or 3 must buy on your t. V. By downloading the portable t. V. On apple t. V. And online at www dot tv and as always check us out on you tube dot com boom bust our t. C. In that time. Your government and our government and all the other major governments of the world know whats going to and when its going to. But they havent told you and they havent told me they havent announced. Imagine something as big as the earth is going to cause tidal waves or earthquakes volcanoes erupt and its going to chill. So very right. My great grandfathers quote. Nobody would care about the law or prison. Wallace this should have. A terrible life between now and the. Harm might have been tonio in this is americas lawyer corporations are lining up to beg the federal government for bailout money is a chronic virus spreads across the country but many of these companies are only suffering because of their poor poor management skills tonight well tell you why some of americas most Profitable Industries backed themselves into a corner and set themselves up for terrible failure also tonight hoovers been crippled by calling the virus concerns about locking down cities across the u. S. Is prompting c. E. O. s to ask president obama to help keep the Ride Share Service afloat and later in the show his millions of americans are rapidly adjusting to life in home isolation what exactly are our legal rights under the states of emergency d in foreign teams dont go anywhere americas lawyer starts right now. Many of the companies lining up d for a handout from the federal government arent victims of coronavirus at all its their own fault its poor judgment join me to talk about that is fair and cousins were going to have a discussion about this people always call and say pap you know let the guest answer the question its a discussion for those who are watching ok so so here this this this discussion really need to center around the idea that you have corporations that knew better held back no cash held back had no plan for the future and instead took all of their money everything theyve gotten tax benefits everything they got from the government and the stock buybacks take it from there right you know weve spent the last couple decades giving corporations these massive tax breaks theyve been making money hand over fist the big big banks have pulled in more money than ever airlines are doing great but instead of putting that money aside which is Kitchen Table economics always make sure youve got enough money for a couple of rough months these corporations decided to go ahead and essentially artificially inflate their worth by buying back their own stocks which puts more money into their pockets and it ties their money up in the stock so they cant spend it on other things they cant spend it on you know expanding they cant spend it all worker raises its all tied up in this you know artificial stock that theyve created so when the market tanks they lose all their money they lose all their value and thats the exact opposite of what the stock market was actually designed to do the stock market was in