Banks c. E. O. s Board Members who have in many cases and by the way this is important in many cases they have been taking that money out of their companies while theyve been doing pretty well and theyve been sticking it in their pockets in the form of stock buybacks much of it with money they got from taxpayers government money during previous meltdowns now heaven forbid that i or anyone else should ask the question of whether some of these corporations should simply be allowed to go under is anybody asking that question yes. We found 11 maybe lonely example look what happens this is on c n b c when a guest challenges the bailouts their lives now remember seeing these see is essentially the wall Street Network in fact many would argue its a 24 hour commercial for bankers and Hedge Fund Managers and c. E. O. s and cetera look what happens when somebody is willing to make the free market argument the capitalist argument that if a company gets wiped out so be it left out there are you are you arguing to let airlines for example fail you know. Why i mean how does that make sense in the broader scheme of the economy because its not because it when you look at what it means this is why im saying like this is alive thats going purported by wall street when a Company Fails it does not fire their employees it goes through a package bankruptcy right if anything what happened to the people who have the pension inside those companies the employees of these Companies End up owning more of the company the people that get wiped out by the speculators that own the unsecure truncheons that are the folks that own the equity and by the way those are the rules of the game thats right because these are the people that court should be the most sophisticated investors in the world they deserve to get wiped out but the employees dont get wiped out. Thats a really great point bankruptcy laws generally dont allow a company to be destroyed they generally keep operating the employees usually keep working and may actually end up owning a bigger share of the company now but see n. B. C. Hoes who are essentially. I mean i watch it be seen but there cheerleaders for wall street theyre not going to tell you that they make it seem as do most of the corporate owned media in the United States like all Hedge Fund Managers and c. E. O. s theyre just like regular folks like you and me except we dont have a mansion in the hamptons. That wasnt in the script theyre not like you and me. You are allowed to fail they are not allowed to fail but look how look how theyre defended lets keep lets keep watching how does anybody deserve to get out what just be clear like who are we talking about were talking about a hedge fund that sort of the bunch of billionaire family officers who cares let them get wiped out who cares they dont get the summer in the hamptons who cares. I mean theyre going to donate downtown based on you know you have to always say these companies own stocks i mean own their stocks own the Company Stocks you can you can look on bloomberg and you can see what percentage of these companies are typically owned by the beating their own by blackrock the things theyre owned by the huge you know a more percent are going to be can ultimately downstream and the Employee Owned a few 100. 00 or. There i we dont know where you stand on this and the fact of the matter is we should just explain this right because hes right the vast majority of stocks are own by about 10 percent of the Us Population think about that 10 percent the other 90 percent is a dozer the workers right and others and Business Networks like c. N. N. B. B. C. And bloomberg and all the others theyre out there mainly to benefit that 10 percent thats their audience thats who theyre talking to right they try to hook others and using other methods but thats essentially by the way that is why a guy like china is the c. E. O. Will not likely be invited back to have this crowd to continue this conversation even though by the way he himself is a very successful c. E. O. Why his argument doesnt fit their narrative that said mr chime of polly. Youre more than welcome to come on here with us why because well we believe all sides should be heard and of course as you very well know this is the news with rick sanchez where we also think it really is. By golly time to do news again. Ok heres a list of the questions we think youll be asking to morrow wires Zombie Companies getting bailed out with your government money how long will it take new york the big apple is frankly would say to recover from the coronavirus pandemic theres breaking news on that and then whos doing your hair your core your cleaning your child care how are you getting it done all right theres a were all about all this week were going to be bringing you special coverage of the coronavirus updates of all over the world. With everything you need to know to protect yourself and your family. You know the funny thing about corporate the corporate class in america and the reporters who cover the corporate class in america theyre constantly bragging about the free market and free market principles they talk about the virtues of capitalism they talk about the survival of the fittest they scoff at the notion of Government Programs like food stamps and welfare but when it comes to corporate welfare if youll allow me to use that term like what happened after 911. 00 what happened in 2008 with the meltdown and what certainly is happening right now or is the plan is to have it happening right now in a major scale. Well then they have a different way of looking at it or maybe a different way d of explaining it like a reporter a c. A b. C. Look i was shocked that somebody would say that maybe we shouldnt bail out Zombie Companies joining us now the perfect guy to have this conversation with Peter Schiff Peter owns Euro Pacific Capital and i think heres a good way to describe peter he is a practicing libertarian. And theres a difference of nomenclature by the way peter lets start with what we just saw on c. And b. C. That a lot of people are talking about is term all right should we let companies die. Well 1st of all of course hes right and you know c m b c acts like theyve never heard this before if anybody listen to my podcast ive been saying his stuff since day one but you know the real beneficiaries of the bankruptcies are not the employees of the companies i mean they will benefit although some of these companies in a restructured bankruptcy will end up shedding some of their workers which is a good thing because many of these companies have too many workers and in order to survive they need to be more competitive especially of demand is down in their industries but the big winners in bankruptcy are the customers you know see in d. C. Is making it out like if we dont bail out the airlines that theres going to be no airlines if we dont bail out the hotels theyll be no hotels thats nonsense they dont blow up the hotels they dont blow up the planes what happens is in a bankruptcy new owners come in all the debt is wiped out and now you have an efficient Management Team with an average company that can actually lower prices so consumers end up with a better deal once the companies are restructured but by keeping them afloat with more dead companies are never viable and they have to keep overcharging costumers based on a government subsidy and once the government steps in and prevents them from restructuring theyre going to be in constant need of additional government money so. What youre saying is if we allow if we allow the process to just happen almost a law right the way things normally happen major somebody doesnt do a good job somebody else comes along and does it better and in the end Everybody Wins and that is what should happen but for the last 2 decades we have not allowed that to happen almost as if these c. E. O. s are these board guys or these Hedge Fund Guys theyre the only ones in the world who have the answers and how dare us think about replacing them thats your argument. If if we had let more businesses fail in 2008 than far fewer businesses would be failing now we wouldnt have created the moral hazard businesses would have known that theres no government to bail them out so they would have acted more responsibly and had the Federal Reserve not kept Interest Rates so low companies wouldnt have done all these buybacks they wouldnt be all levered up they would be able to withstand this temporary emergency but so would their employees dont let the workers off the hook youve got all these people who have lost their jobs who have no savings they cant make it without a paycheck because they have a big mortgage they have Credit Card Debt they have auto loans they have Student Loans why is that why dont americans have any savings either thats part of the problem and nobody should be bailed out no company should be bailed out no individual should be bailed out Everybody Needs to deal with the consequences of their own actions now in the case of banks for example who are having to do forbearance allowing people not to pay their mortgages that is essentially being trickled down to the rest of the population who are in this very difficult situation would you agree some kind of renumeration is due to those who are directly helping people like you and me. No no nobody is doing anything i have no problem with lenders and borrowers and landlords and tenants getting together and working out deals on their own. Own but nobody should be getting a check from the government because the government doesnt have any money all the government is doing is printing money and theyre destroying the value of everybodys savings look were going to have massive inflation in this country the government is doing far more damage with the balance of the stimulus none of this money is free if youre wondering who is going to pick up the tab if you have money in the bank if you have bonds if you have a retirement account if you have savings if you have cash value in an insurance policy if you have an annuity if you have a pension youre going to get wiped out because youre going to pick up the tab because your purchasing power is going to be destroyed by all the money the fed is creating the 3 most important words i think its 3 that peter just said a while ago i dont know if you got that the government does not have any money ok its more than 3 but those are important words think about that thats what the story of itself peter as usual its always a pleasure thanks for being with us thanks for expressing a point of view that sometimes we dont get a chance to hear anywhere else. This is that it is with rick sanchez as you are watching and we are following all the news as it comes in and were going to be right right back. Is youll be a reflection of reality. In the world transformed. What will make you feel safe. Isolation or community. Are you going the right way or are you being led. Direct. What is true more is faith. In a world corrupted you need to descend. To join us in the depths. For a mate in the shallows. Join me every thursday on the alex simon show and ill be speaking to get a little world of politics sports business im show business ill see you then. Small seemed wrong long haul just dont call. Me. Yet to stamp out this day comes to advocate and engagement equals betrayal. When so many find themselves worlds apart we choose to look for common ground. But what about everybody im rick sanchez were here with this is the news with rick sanchez where by the way we made a commitment to you. Months ago that we were going to be on top of this corona virus story and were going to be on it and were going to bring you updates and were going to tell you when theres something important you need to know and when numbers change were going to bring them to you but you know were not going to do were not just going to give you the drudgery of the story every single day because in the end whether there are this many people or that many people in the change is minimal you dont need to do an analysis on it every day it doesnt really affect your life and after a while just getting coronavirus coronavirus coronavirus coronavirus and nothing else gets. Downright depressing so were covering all the news thats going on in the world right now including Important Information as it comes in that we think affects your life when it has to do with coronavirus on that note time for global coronavirus update desk with ben swan to bring us the latest on whats going on what youve got ben youve got a couple things for you 1st of all if kind of an interesting just historical fact here obviously we all know the whole countrys been under lockdown but for the 1st time in all of us history we have all the states in the country all 50 states rick are now under disaster declarations at the same time for the very 1st time that happened on saturday when wyoming officially put up its disaster declaration President Trump approved it and at that point the entire nation at one time kind of historic moment in the us and by the way just for the benefit of our viewers the only reason they do that its really kind of academic if not administrative gives those states the right to access federal funds exactly its all about its all about money in that case interesting story now out of south korea we teased this last hour rick and this is an important one you know south korea which has actually been really ahead of the rest of the world in terms of not only testing but actually you know seeing a not just flattening the curve but reducing the number of coronavirus cases in that country is now saying that theyre taking a close look at the fact that a number of people who had contracted the virus who actually went through the process and recovered from it have now reconstructed coronavirus and thats out of south korea right now were hearing that the number of cases that have relapsed is now at 51 so 51 people have relapsed the big question here and this is important is whether or not that relapse are people who never fully recovered and came back up again or if they had fully recovered and then we can track that thats what authorities dont know yet yeah man can i tell you something the implications of that if its true that you could literally have it get rid of it and then get it again. Oh my goodness that could be very problematic because that means even if theres a vaccine which is essentially a small shift in the virus that people could wow all right lets just wait for the research to come in but good stuff im glad you brought that to our attention good stuff ben. All right lets do this now is there is there a shift on the horizon that will finally lessen chinas prominence we reported in the last hour how countries like vietnam mexico india are ready and willing to be to fill the void that may be left behind by chinese manufacturing plants and factories because they were down for so long its kind of part of a trend that weve been telling you about but it is this now a true paradigm shift thats an important question joining us now the queen of the Business Beat the host of boom bust and an experienced market operator herself there she is christiane so great to see you kristie is being i want to head really written about that what is what is your take on this will china really finally lose its preeminence to these other countries. It will take some time as the pandemic has certainly shifted all businesses both big and small into this mentality of how important a localized supply chain is so the pentagons doesnt excel or the move to ship manufacturing out of china china has been the manufacturing arm of the world now for 3 decades and accounts are proximately a 3rd of all the products that you see on the shelves from high tech to Consumer Staples so when the pandemic actually hit 100 companies realized too late that what seems we have too many eggs in one basket we have to diversify is just Good Business practice today reza might have multiple suppliers but the thing is that china has their companies in for the last 30 years with cheap pricing steep discounts 80 percent of our so companies tossed Good Business practices out the window in favor of maximizing profit ability so now with the coronavirus people are in a new reality in a new normal and theyre looking outside of china to countries such as mexico india and being on that you mentioned china has become a victim of its own success its a commonly have boomed so mudge that workers who just 102030 years ago were making barely a 1000 or 2000. 00 an hour now theyre making 1213000. 00 not on our part me 1213000. 00 in salaries over a year that they have maybe are priced them a little bit. It has and thats was the entire rise of the middle class so within the past 30 years back in the 1990 s. A manufacturing worker on average and about 150. 00 a year and that has since increased to the latest this year was about 13500. 00 and thats an 8500 percent increase in their wages so you can see that the right with the rise of mid the middle class you have pricing coming up so thats what we said about manufacturers no longer able to sustain the steep discounts that 80 Percent Discounts to par and they were pretty is it will do however in other emerging economies such as india with an equally blood labor force with a population of 1300000000 people and other countries such as vietnam that are still behind lighting behind china those countries are still able to offer workers for very cheap labor yeah theyre willing to do it for cheaper and then the corporations of the other godfreys say ok well give you the business. Chrystia youre fantastic thanks so much for bringing us up to date on that story and taking us through it as usual when can this our 6 governors from connecticut delaware pennsylvania new jersey rhode island new york announcing a regional collaboration when it comes to reopening their states emphasizing they have the power when it comes to that decision that may be hap