tv Cavuto Coast to Coast FOX Business January 20, 2023 12:00pm-1:00pm EST
stuart: and here is the question, which vice president served the shortest term? you've got a choice here. it's just you and i on this one. john adams, john tyler, gerald ford, calvin coolidge. lauren: gerald ford? stuart: i was going to say that, and the answer is john tyler. he became presidy harrison diedt days after his inauguration. i never knew that. time's up for us. neil, it's yours. neil: harrison was the guy who did the whole inaugural address and he wasn't dressed, died of a cold. 9. stuart: yes, that's it. neil: the vice president always has to be at the ready, i guess.
thank you, my friend. have a great weekend. at least 12,000 google/alphabet workers are not going to have a great weekend, they've learned they're going to be terminated, up to 12,000 of them. in this sounds like a familiar theme, it is. madison alworth with the latest on a trend that is not slowing down. >> reporter: hi, neil. every day we are getting news of new layoffs, and as that list grows, so do the fears of recession. the latest added to the list, google's parent company alphabet laying off 12,000 people. the ceo told employees in an a e-mail today that the layoffs are global, and the impacted u.s. staff are impacted immediately. those who have been laid off got a separate e-mail relaying the news. the ceo said, quote: this will mean saying good-bye to some incredibly talented people we worked hard to hire and have loved working with. i'm deeply sorry for that. the fact that this will impact
those googlers weighs heavily on me. among other companies, microsoft announced week they are firing 10,000 employees, and amazon is cutting 18,000 jobs. earlier month the software company salesforce announced they are cutting a thousand jobs as business slows for the tech companies that they rely on. the ceo saying that they, quote, hired too many people leading up to this economic downturn. i've run through so many numbers, but it's bigger than just tech. capital one cutting 1,100 jobs, wayfair eliminating approximately 1,750 workers, and just before this report, fox media also announcing some layoffs. analysts saying companies ramped up spending during the pandemic, and even if the company doesn't cut jobs, we are seeing a slowing and hiring at companies like bank of america. a big concern, of course, with these layoffs is whether or not those that lose work will be
able to find new jobs. and when you have this combo of cutting jobs and the slowing of hiring, those hopes are not very high. the new york fed president john williams expects unemployment will rise to 4.5% this year, it currently sits at 3.5%. neil? neil: madison, thank you for that, i think, madison. again to her point, already this year, it's still early in the year, we've seen 55,000 global tech sector layoffs. that's on top of the roughly 30,000 we had seen largely in november and december. so the trend in that industry continuing, leaving aside what we're seeing going on in the investment banking arena. some news to share with you a too on goldman sachs where the big layoffs, of course, have picked up steam. but more on that in just a second. let's get the read on this with gary kaltbaum and dan geltrude with us. gary, you know, you've been talking about just the environment here, not great. we always talk about layoffs. some of these guys, the
percentages are not significant, but my job with loss is significant. we're not minimizing it. statistically, it is piling up. what do you make of it? >> it's the unwind. for a while every data point, every economic statistic and every asset price was based off of massive money printing around the globe and 0% rates. and what that killed is these companies had to -- did is these companies had to meet the demand from all that. you had strong demand can. that's unwinding, now you're getting the unwind of too many employees, simple as that that. once it turns again, they'll get hired back, but i think we're just at the beginning. and, you know, we just hear about the headline companies, the big, famous companies, the gargantuan companies. there's a lot of mid-level companies, a lot of small companies right now in tech and elsewhere that have to do the same. they recognize, oh, we have is 00 employees -- 100 employees, we only need 80, so good-bye, 20. i expect the job market, which is usually late in the game, to
have that unwind. and i suspect that 3.5% is going to be near the low and we'll start heading into the 4s again. neil: all right. we still have 10.4 million jobs that are going begging in the interim, dan. that might change, to his point. what do you think? >> well, it's an unusual thing, right, neil? because you have all these job openings, yet you have people getting laid off, and now, of course, the unemployment rate is going to rise. but you know who's happy about this? the fed! because they're turning around saying, hey, it's working, right? we're slowing down demand, so we're going to be able to get supply and demand in line, and then we'll get inflation under control. neil: does that mean a soft landing? or is it too late? >> i personally think it's too late because, neil, i think there's no way around the pain here. when you have all these people now getting laid off, to me, that's not a soft landing. neil: yeah. you know, because i can look at it, guys, and not to minimize
layoffs, but we -- you know, a lot of these businesses were adding jobs. so we're not back to the point pre the adding of the job. so net-net they're still up jobs. so you could look at that and say these are cautionary steps that they're taking. now, they could go beyond this, and maybe in the case of goldman sachs when they laid off better than 3,000 people, i think the big deal there was the bonuses that came out afterwards, and they were fairly paltry. so they're hoping maybe a lot of those people quit. there could be more of that kind of thing, right? >> and, look -- yeah. and it's logical, what they're doing. wall street, there's no ipos, there's no more spacs. private equity's down, you immediate less people. crypto business, that's gone by the wayside in a very big way. the mortgage business, which took a big hit, guess what? a lot of mortgage people out. and and as you see more and more businesses where things are heading south, there's just going to be to less employees of. it's the natural law of economics, and when demand picks
up again for these areas, when you start to see more ipos and more deals again, guess what's going to happen? they will hire them back very quickly. neil: we have an environment, i guess, in a couple of weeks we expect the federal reserve to raise rates. i think the betting is a quarter point. are both of you in this point? >> at this juncture. neil: i get guess the bigger point is the guidance we get from the fed and what he telegraphs for future moves. what do you think? >> if he stays consistent, neil, he's going to continue to raise the rate. it may be at a smaller pace, you know, a quarter point instead of a half or three-quarters, but again, how long is it going to take to get to the that target of 2% inflation -- neil: we're a long way from that. >> we really are. so, again, that's why i'm saying there's still going to be a lot of pain until we wrap this up. neil: do you agree with that? >> unfortunately, i think they're going to keep raising rates, and i think they've already missed the mark. they were behind the curve -- neil: they should have done even
more. >> no, i think they should stop at this juncture. neil: oh, i got ya. >> why do i say that? follow the 10-year yield, it's a little under 3.5 here. the market is now screaming weaker economic growth. they don't have to keep pressing the pedal at juncture. they're going too far on this end just like they went too far on the other end and were slow-walking the inflation when interest rates were vertical for about six, nine months, and they just sat there and finally played catch-up. if they go 5%, and we're hearing some of these fedheads say 5%, market's going to get hit -- neil: 5, the -- can. [inaudible] they control. 5%, maybe more, jamie dimon said it could get up to 6. >> better not. the market is saying otherwise. when you see interest rates come down can, the real rates, this is the big, institutional crowd buying bonds and rates coming down, it's telling you the economy's going into a little
suffer land, and they're still raising rates. i guess fix their legacy, i don't know what. i just think it's a huge mistake. at point do a quarter and then stop, let things be, but i think they're just going to keep doing quarter, quarter, quarter for the next few, and we'll see how it goes. i'm worried because i think they've been wrong about most things. neil: i look at these fed fund futures contracts to that point, and i don't know how reliable they are, dan, but the latest consensus, always risky, two more quarter-point hikes and hen they sit out the third six week meeting and just see what happens. what do you think? >> well, they may very well get to that point, and i would say that the market is probably believing it's going to go in that direction. we're seeing layoffs, so i think investors are saying, oh, look, companies are now reacting and right-sizing to where they should be, being mindful of earnings. let's make sure we keep that in line. the economy is slowing, that still doesn't mean it's a bad
thing for equities. why, neil? because they take their foot off the gas pedal related to interest rates. neil: got it. guys, i'm going to be having you back. in the meantime, kelly o'grady out of los angeles. we're closely following that that california trial of elon musk and whether he hoodwinked investors or outright lied or misrepresented himself when he talked about taking tesla private. that was then, and he could be paying bigtime for it now. kelly, what's the latest? >> reporter: hi, neil. a couple of headlines for you today. first, we are getting word that he may appear in court as early as a today. so on wednesday the plaintiff's lawyer anticipated to the associated press he planned to call musk to testify today if there was time or potentially monday. i can tell you i've got the feed of the court right here to see if he is pulling up. now, musk faces a class action lawsuit claiming investors lost billions over betweens like this one that anticipated -- tweet withs like this one that anticipated he had funding to take the company private.
the court began proceedings just under an hour ago, but thus far we've only seen opening arguments and testimony from frustrated investors, nothing yet from musk direct9ly. i want to bring up another headline that the tesla ceo could be facing trouble from the sec as well. of course, that's not a new thing for him, but this time over a stock sale he made back in mid december. the billionaire sold roughly 22 million shares worth $3.6 billion at the time, but he's facing scrutiny over whether he traded on the knowledge that tesla's demand was lagging before it became public. when he make that trialed, the stock -- trade, the stock price was roughly $363 dollars, and six weeks later the stock closed at 108 meaning musk sold shares that would have been valued at $1.2 billion less. there are exceptions when company officers can avoid insider trading rules when they buy or sell under a preset trading schedule. i did review that disclosure,
and it didn't indicate he was using one of those exceptions. so the takeaway, neil, is on this one it looks suspicious. remember, tesla did cut prices in china going back to october. i did speak with this attorney's lawyer that shared the sec would likely look into it, but already possible explanations, so a lot of headlines. and i can confirm again he has not showed up at the court yet, neil. neil: all right. already cameras everywhere, i understand. thank you for that, kelly. in the meantime, i just want to pass along some news concerning goldman sachs. the stock the is getting hammered right now. we understand the federal reserve is investigating goldman sachs over its consumer business. our charlie brady, our stocks you would to have, genius overall senior editor, is saying that the punch that goldman sachs is getting over this is accounting for an 80-point hit in the dow. in other words, with us up about 110 points, we'd be up close to 200 points if not for goldman news. so keeping an eye on that and
the significance of that. in the meantime, the significance of the president's statement yesterday concerning all document fuss and that there's no "there" there, well, apparently there is. because part of the "there" was the there that he outlined for us in the very gunning, after this. >> we found a handful of documents that were filed in the wrong place. i think you're going to find there's nothing there. i have no regrets.
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neil: all right, the president now is saying he has no regrets over not going public before the midterm elections with all the news of these documents and what have you, but a lot of people around him are trying to clean things up after that and saying or at least acknowledging that they probably could have handled it better when even his strongest supporters are mimicking much the same. peter doocy at the white house with more on how no regrets posture is going down. peter. >> reporter: and, neil, now president biden is blaming this whole dust-up over documents on vice president biden's aides. >> we found a handful of documents were failed -- were filed in the wrong place. we needly turned them over to the -- immediately turned hem over to the archives and the justice department. >> reporter: and that is when the justice department quietly
investigated for weeks, then turned their findings over to the attorney general, garland, who reviewed them and decided a special counsel was still required. for some reason, even after the special counsel came onboard, biden lawyers were still searching. that is a may major -- major point of contention for critics. >> the idea that the justice department would allow lawyers without clearances to go search for the documents, so that means handle the documents, i don't understand how they allowed this ho-ho to happen. the -- allowed this to happen. the search should have been handled by people who were in the law enforcement agencies. >> reporter: if a review is underway to determine possible spillage of national security secrets, the special counsel won't say, telling fox: consistent with longstanding department practice, we will decline to comment on the ongoing investigation. top democrats are already backing the national security assessment. >> is there any risk that they
were exposed to people that didn't or shouldn't have had access. the intelligence community does those kind of damage assessments, mitigation assessments. they should do so here. >> reporter: and within an hour or so, we do expect to hear from the press secretary. we will find out if the administration has mig heyed like to add, neil -- anything they'd the like to add, neil. neil: peter, it's all about optics, and many times these things have a life of their own. but when the president dismisses a lot of these concerns, he's dismissing a lot of americans' concerns, 6 out of 10 are saying this is a big worry, it is a big concern. so by just sort of poo pooing io dismissing them. >> reporter: well, he might also be dismissing the concerns of a lot of folks who work here, because him expressing confidence that this special counsel probe is going to turn out all right in the end for him is a lot more than officials here say.
all anybody will say on or off the record is they're not going to comment until the special counsel is finished, or the justice department has told them that everything is done. so one thing from the president, it's all good, and then you have hit whole staff, including the press secretary who we're going to see near 1:00, saying we don't know. neil: and, you know, another thing, i don't want to overinterpret that, peter, but to your point, if you're in the justice department or any of these agencies that directly or indirectly report to the president and the president, their boss, is saying something like this, it does have the feeling of i have every reason to believe this'll work out just fine. and so you kind of bristle at that. >> reporter: well, president biden likes to say that there's like a wall up between the white house and the doj. he respects their independence -- neil: right. >> reporter: so it would stand to reason that they might not like to hear him prejudging the outcome. neil: all right. i look forward to your
questions, that is, if your press pass still works, peter. [laughter] thank you very much. you still have it. [laughter] that could be a keeper. peter doocy at the white house. let's go to tijana lowe of the washington examiner, great read of all things politics and trends. the president might feel confident of that, but there was sort of a dismissive attitude to this, sort of lumping it up, oh, these are just republicans making hay of this. last time i checked, a lot of democrats were making hay of this, so you've got to be careful, right? >> absolutely. and let's just recap the timeline here, right? so these biden attorneys who may not have had security clearance found them on november 2nd, the election was on november 8th. this did not leak until 68 days after november 2nd. so there's a crucial shift that i'm seeing not just in the coverage of this at large, right, but specifically the white house correspondents turning specifically on how the
white house has communicated this, right? you're seeing a lot of leaks right now about karine jean-pierre, the press secretary, because in a way she's almost a scapegoat for it, right? she goes out on the podium and says, asserts that there will be no more documents, none. and then what happens a couple days later? they find more classified documents that biden had. and remember not to compare apples and oranges, but unlike donald trump, joe biden as the vice president did not v.a. the power to -- have the power to declassify these documents. it reeks of classic e d.c. corruption, right? this is a very ordinary d.c. story and it's been, what, eight years since the hillary classified documents thing, so at this point it feels old and staling and gross, i think, to just the casual observer of politics. neil: i'm not going to get into the weeds on in the, either the investigation going on with donald trump or the one now just starting on joe biden, but i do know in the beginning they said,
well, our case is much different. it doesn't involve merely as many documents -- nearly as many documents, we immediately cooperated. but to your point at the outset, i think it's an important distinction when we get a tick tock on in that they were not originally cooperative or clear or, for that matter or, honest that they were aware of this back in early november. and to your point, it didn't become fully vetted and out there for another 68 days. so i am just saying in the course of this, they raise serious questions about how forthcoming they were while at the same time talking about donald trump and how unforthcoming he was and how uncontinuive he was. -- uncooperative he was. you've got to be very, very careful. karma is -- rhymes with witch, but it comes back to bite you if you put yourself up on an altar and it turns out you shouldn't be up there. >> absolutely. and let's be clear, the document scandal was probably the closest
thing that democrats hoping that they could the, you know, prosecute trump's way out of to value office, that was probably the closest chance they really had, right? the january 6th stuff, while it's politically egregious, the concern charges are vague in terms of nabbing a conviction. the documents thing could have actually the happened. this isn't an issue about whether or not biden is going to be charged with anything because he's a sitting president, right? and no one a's saying that the magnitude is the same as the myriad that donald trump had -- neil: we don't know. bottom line, we don't know, right? >> we don't know. we don't, we don't know yet, right? it's been very opaque in terms of how they've done it. the fact is when biden's private legal team contacted national archives, the doj didn't come and oversee the rest of the document extraction, right? biden's personal attorneys got to do it. and, again, i don't think they have the security clearances to do so. someone can correct me if i'm wrong there, and who runs the doj nominally, it is biden's
doj. this is what happens when you have participant of the executive branch supposed to be holding another part of the executive branch to account. there is not much oversight here, you know? and biden can say merrick garland is being objective about this because he appointed the special counsel, but everything was concealed for 68 days, crucially during an election and then also during that special runoff in georgia that determined, you know, the democrats' senate margin. so it does look shady, and it also really undercuts one of the strongest arguments against trump not just politically in terms of corruption, but also practically, right? there's no way that trump's going to be charged now, at least to the extent that he would have been before. neil: yeah. and finally, my producers are going nuts, but i love picking this story apart. you're too young to remember this, but i always remind my also very young staff about the peter falk colombo character in the 1970s who would scratch his head and say, mr. president,
you said that you you don't remember a lot of this stuff of and what documents are involved and how many were involved and you were surprised they showed up, then how can you at the same time say this is a lot better than the donald trump situation? bottom line, you're confusing people, and it's that inconsistent9 city that gets us back to the "there" that's there because he put it there. >> absolutely. and, i mean, the best thing biden can probably do at this point is feign ignorance, right? i mean, the man just turned 80 years old, he could claim he's having a senior moment, right? his comms team is clearly not onboard with this. kjp needs to say i won't comment on an ongoing investigation, we don't want to look like we're running interference rather than giving definitive statements because it's clear they don't know how much more is to come, they don't know the hunter biden thing, the fact that hunter biden clearly had access to this. that could be another political scandal brewing. neil: thank you for indulging my colombo analogy.
tiana lowe, great read in wreaking things down -- breaking things down. the inconsistencies that don't add up. all right, in the meantime, you think we're over worst of, you know, the big waits and flight cancellations and delays? we have a fascinating report coming up from jeff flock to prove that we could be in for a lot more of that, after this. ♪ oh, big old jet airliner, don't carry me too far away. ♪ oh, big old gent airliner -- jet airliner, 'cuz it's here that i've got to stay ♪ good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®.
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and now, i guess, what he's warning about. jeff, what's going on? >> reporter: we'll never get over it, neil, i don't know. yeah. well, you know about the cancellation ares, you know about the delays and all that, but maybe what you don't know about, something "the wall street journal" revealed in their annual airline survey and, you know, heavy got, like, a thing where they rank the airlines, bumping from flights, being bumped, you know? you bought a ticket, you go to the airport and they say, sorry, we overbooked? yeah, that's happened a whole lott more. take a look at the numbers on frontier that the journal gathered. typically, they would have bumped about 800 people in the average year. well, last year it was 6,000, and they're not alone are. the industry as a whole bumped double the amount in 2022 as 2021. it was frontier tops, southwest and then american, the three top bumpers. and in terms of delays, the journal also found the top three in terms of delays, that's not a
thing you want to lead in, jet jetblue, frontier and allegiant. then, of course, there was that big meltdown with the faa. you know, the airlines say it's not just our problem, it's actually government problem too. that meltdown may be a wake-up call. listen to the ceo of united airlines on his earnings call week. >> i think this ought to be a wake-up call for all of us in aviation, something that many of us have been saying for a long time, that the faa needs more resources. the faa and most airlines, with the exception of the network carriers, have outgrown their technology infrastructure and simply cannot operate reliably in this more challenging environment. >> reporter: who is operating reasonably well in this challenging environmentsome well, that would be delta the, alaska air and united. they are the top lee on-time airlines. -- top three. but on time, what does that mean?
delta, the top performer, about 80% of its flights were on time. so you've got an 8 in 10 chance. it's better than the powerball, but i don't know if it's something that you really want to take to the bank in terms of my air travel. sir? neil: they ought to -- we stink the least. [laughter] that would not be a good marketing thing. jeff, thank you very much, my friend. jeff flock, philadelphia international airport. i wonder what the former spirit airlines' ceo thinks of this? you know, ben, you know what's going on in your industry far better than i, and if these reports are right, more trouble's to come. this is an industry that got a lot of, you know, federal money, you know, during the pandemic and afterwards to get them back on their feet. and a lot of americans are looking at this and saying, what did you do with it? what happened? >> well, it's great to be back with you, neil. you know, most of that money
went to employees to keep people employed. i'm not saying that it all should have, but that's where a lot of that money went. if you remember, airlines had to cut a lot of flights and a lot of staff right after the pandemic, and the government offered money to keep people employed so that the airlines didn't have to retrain as much. neil: yeah. >> now, that said, should airlines over the last couple of years have spent more on technology? the answer to that is probably, yes. and i agree with what scott kirby just said, that it's a wake-up call to all of us. you know, you can outsource activities, neil, but you can't outsource responsibility. and so the faa in this case, even though they've sort of blamed a contractor for deleting a file, that's not a reason to accept it happening.
so i do think the faa needs more resources. you know, they change what the acronym notem mean from notice to airmen to notice to air missions, but didn't sort of focus on the system that makes those things happen as much as they should have. so so i'm not convinced that we're in for another year of all kinds of delays, but i do think everyone can step up their game, neil. neil: you know, one thing i discovered is that the various airlines are in charge of their own, you know, technologies and systems. southwest, we found out, hadn't invested enough in that, i guess, ben. and, obviously, we know what happened there. and now he was of to deal with the potential -- now they have to deal with a potential pilot workers' strike. we don't know how that's going to go, but i thought they all had to be in sync on this. and that's what causes the problems, and maybe some of the
airlines that have better records or at least not nearly as lousy records during a period of big flight cancellations and delays are able to weather those storms or least weather them better and some that have not. might rue the day they ever did and might not survive. what do you think? >> well, i think that's possible. southwest had an i.t. problem, but they didn't only have an i.t. problem. you know, most airlines fly what's called an out and back schedule. united leaves chicago, goes to seattle, that plane goes back to chicago. neil: right, right. >> the advantage of that is it isolates the network somewhat if there's bad weather in chicago. it might mess that up, but it doesn't mess up united's hubs in houston, l.a. or newark. southwest flies a linear schedule. they leave baltimore, go to st. louis, go to love field, go to phoenix, go to l.a.
so when one link of that chain breaks, everything breaks. so i think southwest is owning up to the fact that their i.t. is good but not good must have to solve that massive puzzle they give it, so they've got to simplify the puzzle and improve their i.t. neil: well, good luck with that. ben, it's great to see you, my friend. hopefully, things do calm down for the industry. the former spirit airlines ceo. in the meantime, we've been telling you about this goldman sachs investigation going on on the part of the federal reserve. we don't know all the details. what we can tell you is it's the hammering the stock right now. it's making up for about a 50-point hit in the dow, we would be up 139 points if not for this goldman news. we have more on that with charlie gasparino. what exactly is going on here, charlie? >> i don't even think goldman snows, you know? i've been -- knows, you know? there is an inquiry going on,
and we should point out a couple things about the federal reserve. the federal reserve regularly does inquiries into banking, into bank compliance issues. and goldman sachs is not just an investment bank. it created its consumer bank under lloyd blankfein, the previous ceo, it became a new-fang ifinged type bank -- fangled. they weren't opening branches like jpmorgan, but everything was online, and you could open deposits, and there's a huge compliance aspect of in that you have to follow. they did ramp up for that. but, you know, apparently -- and this is what i'm gathering from my sources there -- they tripped up on some compliance issue enough hat federal reserve is making an inquiry. i wouldn't -- i'd be real careful on speculating this is some sort of an existential to goldman sachs. i mean, this stuff happens so much because the fed literally is in every major consumer bank checking these things. so is the consumer finance protection board, the cf if pb.
-- cfpb. so this stuff does happen, but where this gets really interesting as a reporter covering it, where it gets sort of problematic for goldman management is what it means for david solomon, ceo. i mean, this is a guy, i know him, he's a very good, smart ceo, but he's under tremendous pressure inside that company. they just cut jobs, they just cut bonuses. he was given the mandate to, essentially, do this consumer thing because goldman, as you know, for many years just basically, you know, catered to the rich and fortune 500 companies and, you know, its brokers only did gazillionaires, and then they did this thing. it was handed to him by lloyd blankfein, he tried to make it work, and, obviously, it is not working. so this is kind of -- where this, i think, is a real story is involving david solomon and his management and his ability,
essentially, to keep the job. i mean, there are people inside that are, you know, there's a revolt going on inside that place among some of his people. so i think that's where this gets interesting. again, you know, the stock is going to turn negative on, you know, a headline. this could be just routine, this could be just tripping, you know, going across a trip wire. i don't get the impression it's, like, i get the impression it's not existential. something else that should be said is goldman getting into consumer banking is not something that they're really good at. you could see how they might screw up on a compliance matter if they're not experts at this stuff. even the experts, the jamie dimons, the jpmorgans, the bank of americas, they run afoul of the fed, and hay get inquiries. again, you know, we sell on -- what is it, buy on the rumor, sell on the fact? whatever it is -- [laughter] just be real careful with this
one if you're looking to sell the stock. for me, the question becomes david solomon's standing and how much money he put into this and he's blowing up in his face. back to you, neil. neil: yeah. and the stock is down. not as down as it was a little more than 20 minutes ago. thank you for that, charlie, great job. you ran to the camera to talk to us. he is always the best with. in the meantime here, we are looking at a government shutdown possibly, but that's not the same thing as a default probably. we'll explore the difference after this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it.
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s&p said, yeah, you didn't default but, man, oh man, you came close to just a clown show here. this is the kind of thing that worries neil bradley, u.s. chamber of commerce vice president, big, big guy when it comes to connections with the business community. and, neil, the business community, you know, is worried about, isn't it? we tend to think that they'll slough it off, it's nothing to worry about, but these guys are paid to worry, and they're worried this is a wildcard, right? >> no, neil, exactly right. i think the reason we're more concerned this time than we've ever been in the past is really for the first time we have some is people who are suggesting that maybe it would be okay for the government to default on its debt -- neil: yeah, that always gets people very nervous. now, what would do that, neil, you know far better than i. we don't make payments to social security or medicare recipients or pay interest on our debt to bondholders, and the like. that is not unfathomable.
we've come close a number of times. >> we've come close. we came the closest in 2011 -- neil: right. >> congress averted a default by a mere matter of hours at that point -- neil: you're right. >> but we've never crossed over that threshold, and once you cross over that threshold, you would for the first time call into question the full faith and credit of the united states which is the underpinning of not just our financial system, it's the underpinning of the global financial system. neil: you know what was interesting about that 2011 period, neil, because i was covering it here, that that's how old i am, one thing i noticed is and this was a lot of proponents of taking it to the brink, we survived the downgrade, we survived going from a aaa credit rating, and the world flocked to us as the safe haven, was the world -- because the world in comparison looks far worse. i think that's a risky attitude. >> it's a very risky attitude.
it ignores the fact that a even the threat of default in 2011, even the fact that we cut it so close actually meant that the interest rate that the government had to pay on its debt actually went up. and when that a occurs, as everyone who's watching us today knows, when the interest rate on treasuries goes up, everything else correspondingly goes up. so it wasn't just that the federal government ended up paying more, we paid more on our credit card bills, on new mortgages just because the government was cutting it close. imagine what would happen if we actually defaulted. and just destroyed that underpinning. neil: yeah, no, you're right to raise questions about it. neil, love having you on, if for no other reason than you spell neil correctly, which is the internationally recognized way to spell the name neil. always good having you on, neil bradley. appreciate it. hopefully, we don't get to the brink, to your point. in the meantime, netflix isn't on the brink, but still the guy who came up with the idea is kicking himself
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breaking all around the world. >> she's becoming a royal rock star. >> and then -- >> everything changed. neil: that was a hit, to put it mildly, whatever you think of harry and meghan. as documentaries go, second most watched in netflix history and, obviously, people were tuning in to this. i tuned into this. it's kind of like watching a train wreck. but the bottom line, i wasn't alone. 30 million, apparently, did so. anyway, that's just part of the reason why we saw met frisk -- netflix have the surge it did with 7 million more subscribers in the fourth quarter. larry glazer on the significance of that. just when we thought streaming was stumbling, this is the proof that it ain't dead yet. of i don't know if it hangs on just, you know, a documentary series on royals. but bottom line is you provide
the right programming, the streaming comes along with it, right? >> that's right. look, neil, despite all the talk about how the great reopening was going to devastate technology companies and, yes, big tech is laying people off, their net subscriber numbers at netflix today showed they're down but not out. and i think hastings was on to something, neil, he knew we're a nation of couch potatoes. we like to sit, we're lazy, we like to watch tv. this is a cheap form of entertainment. neil, not everybody gets to go to disney world this year with rising food prices, fuel prizes, utilities, a weakening economy, but a pizza and a movie, that's my language. neil: but why aren't the other streaming services benefiting to the degree that netflix is? >> yeah. well, look, i think this is the the walmart of media for streaming, right? they were the first mover, they were there, they had critical mass. and the space got awfully crowded during covid, and the
reopening did create alternatives. but what we're finding is those alternatives maybe are finding a tough ther time getting market share. look, madonna tickets went on sale, those are really expensive. taylor swift tickets are really expensive. netflix is still an affordable bargain. yes, they're cracking down on password sharing, yes, they're putting in ads, but i think on an affordability basis, people recognize in a weakening economy, people are more likely to watch netflix, not less likely. and i think we recognize that the leadership in the last market cycle is rarely the leadership in the next market cycle. but with this stock down more than 40%, you know you were glued to harry and meghan. i know the cavuto household had multiples on watching that, and that's okay. i -- multiple tvs on. i prefer a show about an out of shape guy who likes to eat a lot, something like somebody field bill. [laughter] that's what i like to do after thinking about inflation and
soaring prices. neil: yeah, please. >> it's stranger thing es in washington, that's what i like to do, but to each his own. it's the sill good for netflix if. neil you raise a lot of valid points. larry glazer, great to see you. we do like to screen even series that we criticize, and i have to say the same with the prince harry and meghan thing. what weirded me out was they had microphones and cameras everywhere throughout the entire course of their relationship. weird. more after this. thank you. doors are new beginnings. -surprise! -surprise! your dedicated fidelity advisor can help you open those doors. for you, mama. through personalized money management .. your entire portfolio. with an eye on taxes and the impact of risk. so you can enjoy moments together. because doors were meant to be opened.
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