good morning, everyone. it is friday! friday! i m so happy to have my long time erica hill with me today. and next week. thank you for getting up super early. great to be with you. a lot going on this friday. let s get started with five things to know for friday, may 26th. the house negotiators are moving closer to avoid a default. it would lift the debt ceiling and cap spending for two years. memorial day weekend kicking off to be a very busy travel summer. aaa expects air travel to be higher than pre-covid levels. airlines face staffing shortages and air traffic control problems. two workers in mar-a-lago moved boxes of papers one day before the fbi visited the former president s home to pick up classified documents last year. the post also reporting that he had classified documents in his office at times and showed them to others. also in texas, lawmakers recommending articles of impeachment against the state s attorney general. they re accusing ken paxon o
talked some seven weeks ago. that yielded no results. there s hope this one will. welcome, everybody. i m neil cavuto. we had a crazy day at the corner of wall and broad. we did add have two prominent irish men break bread. let s go to capitol hill. the president and speaker did not meet since they discovered the debt ceiling. no formal talk today. this luncheon has a history of helping political opponents solve problems like the good friday accords. i agree with the speaker. there s no reason why we can t find common ground. there s no reason why we can t hope to change this direction of the extremes both our parties are pushing. mccarthy whispered to the president good job after his remarks. two irish american political leaders launched this four decades ago, president reagan and tip o neal. the luncheon helped them break political differences. for america, we know the stakes are high. a clash is brewing between the president and i. what would be the ramificatio
mark milly he said it would have a negative impact on the readiness and capabilities of the military. the fitch ratings wornd about the u.s. writ large but they also warned about the government backed lenders fannie and freddie. how significant is that? does that indicate to you that fitch may downgrade the u.s. credit rating as s&p did in 2011? it would not have a material effect on markets. it would not have a material effect on contracts. if the other two agencies were to follow fitch, that s s&p and moody s, then that would have an impact. as much as i think this is going to go away, there is longer term
that didn t work. it wasn t just bear stearns, it was the bond insurers and fannie and freddie. her point is sheila s point is very much on point in this sense. in the 30 years before the financial crisis, there was multiple bailouts. multiple u.s. government involved in various missions to save the financial system, whether it was the saving of the long-term capital hedge fund, if that blew up, all of wall street would go with it. the mexico peso crisis. you can go back on all of this stuff. it created moral hazard. people thought the fed and the treasury and the government was going to come in and save them. they took more risk because they had the backstop. neil: this is a bigger
right now? well, i like the bear stearns moments. it s a line that i ve been using. if you covered 2008 and i was there i was a reporter covering it. i was literally on day by day, minute by minute trying to figure out who is next and how they were going to bail out the system. you saw after they bailed out bear around that was a bailout, a an assists sale to j.p. morgan, although they wouldn t say that was makeup assisted. they got stuck with bear s liabilities. we should go back further. go back before bear was the bond insurers. they worked out some plan to shore them up. they held some of the same assets on their balance sheet. when that department work, bear started to fold. when that didn t work, they made a bailout of bear and that department work. you had fannie and freddie where they took over.