Transcripts For RT Boom Bust 20240713

Percent they say of the grants that the airlines would get would actually benefit taxpayers get this they say in the form of payroll and income tax receipts that doesnt make any sense at all they dont loan someone money if they can pay it back to you and then say thats a benefit to me because they were going to give some of the back and form of taxes thats thats crazy and so essentially what theyve done is are saying 30 percent of it youre going to repay back at some point but i got to tell you this stinks this whole thing 25000000000. 00 going directly to airlines to build them out when in the past we know this that American Airlines and Delta Airlines so Many Airlines have gone into bankruptcy in the past it doesnt mean that those airlines shut down they re emerge from bankruptcy it does not mean the end of the Airline Industry which is what so many in the media are telling us now what are the most interesting portions of this deal is that it does seem to include some ownership stake in the airlines for the u. S. Government how does that work into that actually going to happen. Its kind of a crazy idea you know especially in a moment when you have a Trump Administration that has been running on the idea that the u. S. Will never be a socialist country the president talks all the time about how socialism so terrible and yet they just put into this deal a very socialist measure which essentially says this that essentially the treasury is going to receive stock warrants worth about 10 percent of the loan amount that exceeds 100000000. 00 now there are some very very Small Airlines that might get less than 100000000. 00 but every major air carrier is getting billions of dollars. Were talking about American Airlines getting Something Like 5800000000. 00 delta is getting around 6000000000. 00 for their part so when youre talking about these Airlines Getting billions of dollars and the treasury is going to now hold stock in those companies which in theory they would say oh the taxpayers hold stock but thats essentially socialism where a Government Entity or the government itself owns equity in a private industry its crazy well bet and i only have about 10 seconds left here with a quick answer but is there any actual possibility that theyre going to take those more its up and actually the u. S. Will take those stakes. It is possible its not likely i guess necessarily but why put it in there anyway so if youre not going to take that stake why would you include it in this bill at all its outlandish for it to be in there and i was one of my people i know were short i want to remind people that meanwhile you have Small Businesses all over this country that dont even qualify anymore for this 350000000000 not in grants but in loans that were going to be made to them and you have millions of companies that cant get anything while the Airline Industry is sucking up all the air in the room and all the money in the room with a 25000000000. 00 bailout for just a couple of companies so were going to get to that in just a 2nd here boom bust coast and investigative journalist ben swan thank you so much for your time there. With us and for more on this bailout of the Airline Industry and some other Economic News were joined by professor Richard Wolffe host of economic update and author of understanding socialism now you know professor well you just heard what ben said and actually that was exactly how i was going to open this interview was how can it they put there they were the 1st to have their hands out and now were seeing even just within the last couple of hours the s. B. A. Loan program is basically falling apart and its already run out of money so what do you make of this whole situation with this Airline Bailout. I could not agree more with your previous interview re he has it right this really burns smelled terribly like a reality of from old to read at least and nobody alamos would beat it most of a small correction the total value of the gift of the airlines is closer to 6060000000000. 00 than 25. 00 yes its 25. 00 in outright grants and loans of the sort you spoke about but theres an additional 25000000000 of what i call loan guarantees in which the federal government says you go to the bank borrow money to get the best deal imaginable because we guarantee the law and if the airlines cant pay it back the government will and then on top of that another 8000000000. 00 for the carrier the cargo car of the airplane business which all those companies are involved in so this is a youll see if and it will be mostly the discretion of the boards of directors of those airlines so lets say a dozen the airlines 10. 00 to 20. 00 people on each Airline Board of directors theyre going to be the ones who decide how do you lose all of this money theyve always islas did to profit the shareholders and the top executives there is no reason to assume they wont do this saying now why do you permit this bailout to be controlled by the people who have bankrupted these airlines over and over again well we have to look into a very strange crystal ball to get that incident and as we mentioned i mean they were so generous to have accepted these terms on this but professor wolf i want to go back to the f. B. I. A question i had there is you know were just a couple of weeks into the Small Business program that is supposed to help the Small Business who are hurting and theyre already saying that this could be running out of money at the by the end of wednesday afternoon and yet were still talking about an Airline Bailout so what do you make of that situation. I think youre seeing exactly what went where this country what it looks the biggest businesses at the biggest arms pissed of board the biggest lobbyists who get what they want in that 800 page bill the smaller businesses have lesser lobbyists and the average citizen has basically no lobbyist at all and thats the bill which you get yes theyre running out i mean let me remind everyone the 1200. 00 that people were going to get and were attached players you know the average income of an American Household about 60 grand a year you worked out that 1100. 00 a week what were being given is one week money its already 4. 00 weeks into shutdown weve been losing money this is a joke when you compare what has been given to average people and the bammer out of most at the top who have more responsibility for this economy and then any of the rest of us which they proudly tell us all the time you really have to shake your head in disbelief and now professor wolf you just mentioned the stimulus checks that theyre theyre actually getting peoples accounts or getting direct deposit of course as you may have read according reports of this paper checks may actually be delayed as the Treasury Department ordered that president trumps name be printed on them but new dad is actually saying those who have already received their checks and already are spending it 16 percent of that is going to take out and delivery restaurants 10 percent on gas an additional 9 percent at the Grocery Store and even 5 percent is going to video games if this type of spending actually stimulating the economy or or is it just you know is that just getting people by. Its very minimal getting people by its over at the end of the reach for me give you an example most European Countries heres what they did they told the companies gunfire anybody they dont have unemployment instead keep the 100 job keep them aware of whats going on at the job we the government will help you pay their wages and salaries for an indefinite period so theyre not anxious when they get the job back at the end it will not go take a different job which may not be the one that theyre trained for all the inefficiencies of what were doing is gone and a much more stable rate read costing more money by all means but theyre not his riches we are so here its purely the way this system favors girls that that is governing whats happening professor Richard Wolfe host of economic up day and of course author of understanding socialism thank you so much for your insight well have you back soon to talk about this. Thank you brant glad to be here. As the total number of cases of the coronavirus has no eclipse 2000000 worldwide lets take another look at the spread of the crowbars globally with r. T. Correspondent science editor sorry whats happening today brenda 2nd week of april marks the deadliest week since the pandemic arrived in the u. S. 3 months ago and now more than 2000000 cases have been reported globally and the u. S. Accounts for about 30 percent of those cases with more than 600000 nationwide and but at the beginning of this pandemic we all looked at china china right dealing with the outbreak and i had the time it seemed to be completely out of control but 2 months later the situation is very different right now after aggressive testing and quarantine efforts that were mandated by china and numerous other countries around the world are also in the beginning stages of managing their own outbreaks which is what appears to be a leveling off so i want you to look at this graph right now so in these countries once and so in this country show that flattening the curve does not mean immediate and other chronic virus but a slow decline and a great example of that is france germany italy china portugal and greece which are all already in the curve as you can tell instead of going up there kind of flattening so this is all great news and even though spain and italy have the 2nd and 3rd most reported cases in the world behind the u. S. Both European Countries are beginning to see a decline in the number of new only reported cases so it does appear that the peak of the virus has passed as the numbers and decayed and this is all credit to things like. Social distancing testing and personal hygiene and now theres also in these countries which have dramatically reduce the spread of virus which is also why some European Countries have started some industries back including spain which has resumed some factories and the latest germany who Just Announced their plan on reopening their economy on april 20th and lets not forget china which had a lockdown but ended in one on on april 8th and the citys transportation hub has actually resumed operations were people are even starting to travel again and wealthy and consumers across. Provinces have even turned their irma store which is of course known for their famous luxury bags and made a record sales in fact some 2700000. 00 just in one day so all positive signs for the economy so but we also resell countries flattening the curve by brand theyre also countries that have not had flattened like the u. S. U. K. Brazil and india who are really struggling too slow with the number of infections and experts are actually warning that india might be the next major outbreak while south america is also struggling to stop the spread of the new coronavirus cases including countries like brazil in ecuador which are likely being way under reported it going back to retail so as you just mentioned quickly how is the u. S. Doing so were obviously seeing Grocery Stores and pharmacies in high demand at the moment right but many other businesses have closed and consumers are drastically cutting their spending because guess what 15000000 americans have lost their job and as a result u. S. Retail sales plunged 8. 7 percent. This month the largest decline ever way worse than previous recessions which goes back there into 2008 and ran the Retail Sector accounts for more than one in 10 u. S. Jobs the only other in this year in the us that actually employs more is health care and stores that generate billions of dollars in rent for commercial landlords ad sales for local Media Outlets and local cell level receipts for state and government so this is really trickling down to everyone and were seeing all the pain happening right now in the economy r t correspondent sorry curvature thank you so much for that excellent report today. Marty can always find the latest news and information regarding the coronavirus on portable t. V. s coronavirus trekker time now for a quick pause but hang tight because well be right back and as we go to break here are the numbers that the quote. Market which i think is a great market to give an indication of where prices are weather heading the fact that fine art of the bees and other auction houses has gone up dramatically over the past 10 or 1520 years spectacularly so its not reflected in the price of bread into all of it and now its starting to be that way so that inflation that we saw in the High End Products is down going to end up being in the staples like wheat bread and i just saw somebody post an image of a chicken for sale somewhere that prices up 100 percent. Humanity is on the edge of a precipice thanks to continuing destruction of the natural world. You just seem laid out a lot of bills also. Losing much of a later period. But it is. Less than nothing you can hold up. The bill you. Got over the war. Or the. Only dealing in the muslim world as a rule book you sit around and stuff it and ship them stupid to say when was the move of. Human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just come take it and move. One else seemed wrong why dont we all just dont all. I mean you get to shape out these days become educated and engagement equals betrayal. One thing many find themselves worlds apart when shes to look for common ground. A i. And welcome back Global Equity markets are bleeding again after what had been a mostly positive 7 day stretch so lets break down whats happening with some expert analysis from todd horwitz chief strategist at bubba trading and boom bust cohost christy i am going to start with christie here so christie tell us whats going on with equity markets today. Well bar gets open sharply down wednesday as we start to get Economic Data and weak banker earnings coming in all below expectations and my needs are expectations that have already been lowered or advised low are ready so theyre coming in even worse and that we sell about 500. 00 on the open and close down almost 2 percent so today the department of commerce reported that march wintel sales saw the biggest drop on record and the biggest annual decline since the financial crisis so now we have all the nancy j. C. Penney preparing to file for bankruptcy and now this means closing all 850 of its stores and furloughing its 95000 employees across the United States marshal show that retail sales plunged 8. 7 percent in march with clothing in excess of topping 50 percent of all my food and beverages which dropped 25 percent and then you also have new York Manufacturing numbers coming at an all time low 78. 2 percent so now essentially youre getting a double whammy the 2 big pillars of the economy the consumer and the business all getting hit and all coming in worse than expected you know kristie were going to get to some of some of that Bank Information in just a minute but i want to talk about oil is actually kind of had a dismal day here whats going on in the oil sector. Well done 80 i crashed below 20. 00 overnight before struggling back up a bit as huge inventory built were recorded and the i. A. E. A. Commented that this is a historic Production Cut it wont really be enough to counter this record demand slump this year demand theyre saying could fall by 29000000. 00 Barrels Per Day in april driving demand to its lowest level in 25 years now stockpiles are rising everywhere and at this rate storage will be exhausted barry said and since this entire Historic Deal doesnt really kick in until next month the battle for market share is still on to win asia right now how this price war between me and saudi arabia and just how its icy for crude after saudi arabia initiate a price war again our lands week and now bob i want to bring you in here dont worry i dont forget about you i want to follow up on a lot of this oil here it looks like texas is attempting to lead oil Production Cuts now we havent had a free market in the oil industry in some time with all the intervention but at least there was the illusion of that free market book but with Texas Producers now pro rationing Oil Production is this the beginning of the end for the u. S. Free markets in oil. That if you look at the free markets in general when you have the Federal Reserve the largest ponzi scheme in the role of the legalized by the scheme thats always a problem i think that youre going to see this going back and forth this goes back to the old bad days where they need to cut production because theyve got the euros on the supply that i think that the free markets will will win out in oil because again all theyre doing now is trying to accept the bleeding but if you look at oil going into the future june oil is higher than may and july is march higher than ball so again were seeing some bullshit action behind the scenes but we are seeing right now is that you know many are always coming off the board tomorrow and its just theyre just sell you because again there is not going to increase in the man but the market is pricing in a bigger demand coming down the road i think we will see it once these idea of the economy open again you know kristie were. Are bracing for a slew of negative earnings reports this is where the banks come back in because weve seen 4 of the big guys the big banks really take a beating this week alone. Is this an indication of how just how bad things are going to get are or are they could get worse. This is an early in the case and bank of america as expected report of big badness on earnings despite the lowered expectations coming in even worse so profits were down 45 percent during the year and the stock sank 6 percent so and in response so now most of these big banks have now reported giving us an early look at the damage theyve all reported more than 40 percent decline in earning all across the board and now the big 7 u. S. Banks have already set aside some 27000000000. 00 in credit last commissions and thats lost as 4 times greater than the provisions set aside last year and the most since a financial crisis so the question is will that actually be enough all the banks are expecting massive massive defaults and delinquencies and no man knows how bad the delinquencies and rouse will be and as a result they will face even bigger profit declines later on now Goldman Sachs luckily also reported losses dragged down by debt and Equity Holdings but it was buoyed up by gains in trading so out of all of us wall street here is Goldman Sachs derives a biggest share of its revenues from trading and m. And a so in that respect it was slightly more insulated than its peers and did lower but better. Lets go to bubba noted fed enthusiastic the old saying dont fight the fed is certainly applied here in the last week weve experienced one of the best rally since all way although today not so great but will this actually hold that should we just ignore fundamentals here or are and just buy whatever the fed is buying at this point. I. Think its going to hold i think when you when you look at the overall picture youre seeing the sugar rush the artificial buying right now i think i dont buy that to market are going to make new lows before its all said and done right now youve got the fear of missing out playing in because again youve got this issue that were all is can you go. With your money i mean you can go into the back into the bonds or in our banks because theres no place to go so money is flowing in but were in right now the markets are extremely a liquid right now you have no volume so all youre seeing here is some artificial movement before its all said and done as the fed is always on the past is this markets going to fall apart and again we will find somebody who will over him but i believe be much lower than we are today and now. Finally i want to head over more thing the Small Business bailout fund is expected to run out of money we just mentioned this a little bit ago it is expected run out of money by the end of wednesday but most Small Business are still actually waiting for the loans to even be approved whether theyve even it been able to apply so much because its been such a problem so what happened all that money and are we going to expect more government money coming soon. I think that theyll get their money the ones that have apply i think the role be more the big problem with these packages where you know brands is that when when when the governments got a negotiate that the other party where we have to be at the time to send to the left theyre going to stick all this crap in these bills which at the end of the day we pay for anyways so because theres all this is all going to come back in tax money at some point and thats the problem with this whole deal i understand whats behind it and i know we want to get people working but without the economy rolling and without companies in business its kind of hard to figure that even the stimulus money is going to help because theres nobody theres no velocity of money theres no turning of money were just in a bunch of illiquid things right now Todd Horowitz chief strategist at bubba trading and boom bust cohost chrissy i thank you guys for that expert analysis. And during these times of social distancing in lockdowns many of us are forced to work from home for instance here on boom bust we rotate weeks hosting and producing the show from our homes and from the office you see there about this day ok here every other week me generally this means operating systems a few miles away and a convenient matter but what if your project was over 100000000 miles. Away well scientists at nasa are doing just that with the mars curiosity rover in a post on tuesday the space agency explained how a team of hundreds of people are operating the rover from their homes much of the work that would be generally conducted on Super Computers is now being done by a laptop or on web services its not just maintaining the rover either the team said it recently drove up a rock drilled a sample and sent the data back to the team to be analyzed as if it was a normal day at the office even if that office is nasa. Thats it for this time you can buy the brand new portable t. V. Apple billboard smartphones through google play and the Apple App Store by searching portable t. V. Or stream is to your t. V. By downloading the portable t. V. s on apple t. V. And roku devices as well you can also find our coronavirus tracker on the portable t. V. Up where you get the latest news and information about the spread of the bars and as always check us out on you tube dot com slash boom bust our to see you next time. Dont miss. The really p. C. Sometimes it can be seen as usual you wont believe whos going. To take the stay cool shots off the seat next dont. You assume i should say. Thinking of getting a coupon the ones we got in here shes not alive as you know and hes trapped in this town you know wired you dont need a crate with him he will just start freaking out and he wont let us pretty much anywhere near thousands of breeding dogs are caged in the interview lane conditions on the phone i mean 67 years you know theyve been locked up in cages outside you see no protection from the weather the heat you know the cold air the rain the snow the founder nothing they have no protection. If youre lucky you. Get 2 kids. Across the u. S. Crude puppy mills are supported by dog shows on pet stores most of the puppies that are coming from these large Scale Factory farming kind of operations are being sold in stores even giant a good businesses are involved like cargill the mom santa theres been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial rating for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs dont buy dogs. Humanity is on the edge of a precipice thanks to continuing destruction of the natural world. Through just being laid out a lot of bills also received at losing much of a later period. Of pianos. Less than loving you can hold up. The but. I think that all of the war 30 are now below the. Only dealing in the muslim world as i am all here. As of today and shit the mc that disables the movement. Of human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just come take it anymore. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race in this very Dramatic Development only personally im going to resist i dont see how that strategy will be successful very critical time to sit down and talk. In the headlines this hour the u. N. Childrens fund warns of a potential missiles out dismissing the ranks of the 19 pandemic we hear from the unicef chief has been minimization. These 217000000 children that we estimate are going to miss over measles recognition land. Have been rescheduled. From clyde medics in the United States so that their lives are being put at risk while the governments failure to supply hospitals with protective equipment