Street com they say hit from all sides European Bank stocks swoon to 1988 low leaks about Money Laundering a resurgent pandemic china risks exposure to turkeys financial crisis all in a negative Interest Rate environment that is toxic for banks so the stocks 600. 00 banks and x. Which covers major European Banks slumped 5. 7 percent on monday to close at 81. 00 just a smidgen above the mall 5 decade low of 79. 00 set in march the last time before march that the index was below todays level was february of 1988 during the sell off that followed black monday in october 1907 when it also slumped as low as 79. 00 the index has collapsed by 85 percent since its peak and may 2007 after having quadrupled over the preceding 12 years its looking bad right. I mean 1988 and the connections in 1907 black monday the crash of that year its very important and because the solution then was to extend Bank Credit Facilities thats how Alan Greenspan Ronald Reagan and robert rubin the plunge Protection Te
The solution then was to extend Bank Credit Facilities thats how Alan Greenspan Ronald Reagan and robert rubin the plunge Protection Team or that working group on finance the president S Working Group on finance decided that they would solve this problem by not punishing or reforming but expanding the credit line of these banks so they did exactly what they were doing but on a bigger scale and then we have of course another major move down in 1989 we had a bomb crash more or less 9093 we had the dot com crash in 2000 we had the 2008 subprime crash and each one of these crashes were caused by the exact same thing over indebtedness too much leverage and no accountability no than foresman of regulations by the f. C. C. And then send in others and each and every time the policy from the Central Banks is to expand credit line and say do it again but do it bigger and now in 2020 we. Of now some more thing happening all over again its entirely predictable entirely preventable but as restraine
Have created a more cautious consumer billionaire tilman will tell us what that means for his business power lunch starts rite now. Wall street starting to trade like a tech stock hitting a record as it gets set to launch its competitor and gears up for a deal to by tiktok zoom up after 40 . Invest rs continue to pile into these momentum names more on the markets and high its hard out there, send it over to bob. Yesterday he sort of threw in the town he said theres no precedent to how high valuations can go with low rates and unlimited q e. John also wu drew his price target these are veterans having a hard time to figure out how to put unlimbed fed support recessions would happen when the fed withdrew the support what does it mean . One of the thing s the bare arguments dont have much traction now the fed will keep stimulating and the Global Economy is slowly pivoting higher and the earnings are too conservative this happened in the Second Quarter and they are saying it again. For 202
Importance of getting off our screens one day a week is an interesting time to think but unplugging given this moment during the coronavirus pandemic as were taping thing interview. Were finding ourselves even more tethers to screens because we are able to do things like meet people in person, go out to our workplaces or schools for most of us, or hang out in a bar or a cultural venue. Well hear more but the book from tiffani and then have a discussion. So, over to you, tiffany, take it away. Guest thank you. Its great to be here imim from the bay area, im glad were still able to happen this wise, adapting toking this extraordinary circumstance were living in. Which actually this moment were in feels very similar to a moment i was personally in around 11 years ago, actually this monday, the 11 year neaves of my fathers death, and what happened was my father died of brain cancerment my dad was also an author, leanord shlain, and his love of book stores and readers. Very close and he die
The coronavirus outbreak. This is a group of experts are outbreak could go on for another two years and wont be contained until 2 3 of population is immune. Joining us to break down the day wall as at least on street, taylor riggs has been digs into the markets for us. Tailor, a rough day, there were so many signs of hope this week . Felt like a mood shift this morning, emily, we woke up, a sentiment had been negative. As you remember, 30 after we bottomed out on the lows on 23. H there could have been some rofit taking here as well as some concerns continuing about the economy. We got news in the past few days overnights that trump was considering floating around some ideas of how to punish china for for the handle of the virus, for shutting down a lot of the doctors back in december who were really trying to warn this. Some of those renewed tensions some of the ng debt, thats very far stretched according to some of the to, ysts that im speaking but another option to be tariffs. Now t