tv Cavuto Coast to Coast FOX Business March 16, 2023 12:00pm-1:00pm EDT
stuart: i go with 1643 i haven't got a clue. totally wrong. 1798. green became popular during irish rebellion. the green clover was symbol of nationalism. before green, the color was blue. this is turn around, folks. main investors feel the crisis, bank crisis has been contained by the swiss over there and by the authorities here in america. maybe. dow is up 200. don't forget to send in the "friday feedback." email us at varney viewers at foxx dot-com. that is it for me. that's it for varney and company. guess what, "coast to coast" starts right now. ♪. neil: meltdown, smelt down, banks looking shaky but european banks are not shaken.
james bond in reverse. shaken but not stirred. even with this mess, the ecb raised half a point there with will our central bank here? janet yellen telling senators we're not shaken and not stirred. our banking system is sound. not everyone bought what she was saying, stir, selling, for good reason, think about it. if a 54 billion-dollar lifeline for credit suisse couldn't bring calm to their markets. they were you think about this talk of help on the way for first republic bank, couldn't help first republic bank's stock in our markets, what could, what will? we'll ask house majority whip, minnesota congressman tom emmer, he is worried very much stirred. in case you're counting, interest rates are down half a percentage point in just the last week. why aren't mortgage applications stirring? we'll ask real estate developer
royal palm company ceo daniel kotsy. welcome everybody, i'm cavuto, neil cavuto. that is the best i can do. go to the yelling going at yellen, treasury secretary janet yellen at the heated hearing i carefully the shake has hit the fan. chad pergram watching it all. chad. >> reporter: neil, the got afternoon. the goal of yellen is to calm the public about wages. ron wyden said nerve are frayed. yellen said taxpayers are not on the hook. the fed introduced a plan to underwrite banks. >> reassure the members of the committee that our banking system is sound. americans can feel confident their deposits will be there when they need them. >> reporter: the problem with svb that it invested in u.s. treasurys and interest rates spiked. the bank had to settle treasurys to pay the customers.
svb lost money dumping treasurys early. that is why the bank collapsed when customers demanded their money. >> the bank to meet liquidity needs had to sell assets that it expected to hold to maturity and, given the interest rate increases that have occurred since those assets including treasurys and government-backed security, mortgage-backed securities they had lost market value. >> reporter: republicans used the issue with treasurys to underscore concerns about inflation and higher interest rates. lawmakers promise a bipartisan investigation into bank regulators. >> the government had to step in this weekend to prevent bank runs because bank lobbyists have too much power in this town. it is the same story. it happened time and time again. congress pays more attention to their contributors and their friends, their friends in the
lobbying community than they do the workers at home. >> reporter: some lawmakers want to stiffen banking rules which congress loosened in 2018. they're still concerned about contagion especially after problems at credit suisse. neil? neil: chad, thank you very, very much. one of the things we got, so far are getting from the administration and janet yellen echoing that again today, taxpayers won't be on the hook for these rescues or cash infusions, whatever you want to call them here. i wonder if tom emmer buys that, the minnesota congressman? also house majority whip, sits on house committee on financial services. very important player in all of this. what do you make of that argument, that treasury secretary's espousing? we're hearing from administration types taxpayers need not worry, not on their dime? seems a little unrealistic? >> neil, first off, thanks for having me. i think the thing that is missed by the treasury secretary, by
senator brown from ohio is the fact that this whole thing is caused by the biden administration's failed policies. they have been spending money so crazily over last two years they have driven double-digit inflation. they have driven these rate hikes we've seen at the fed because you have to raise interest rates to battle inflation. they waited too long i would argue at the fed to start that. once the process -- neil: wint would have had some of that inflation good deal with it, with or without what the administration is doing? the spending certainly didn't help, you're quite right, parking economy coming out of covid, obviously there will be a boom in activity what do you think of that? >> pent-up demand, the money in the economy, look we went into the, into covid with the best economy in decades. low unemployment. we should come out of it with the same kind of speed. maybe would have taken a little bit. but their own economists, you know, larry summers told the
president don't spend this money with the american rescue plan. you will light fuse for inflation we have experienced over last two years. that resulted in rate hikes. you heard sv, silicon valley bank was caught without the right risk analysis. they didn't hedge against potential rate hikes. it is interesting, neil, because, people need to understand and we need to find out why, the federal reserve has regulator embedded in the bank. the bank didn't have a risk person for nine months before this thing went down. more importantly, where was the federal reserve while all of this was happening? why weren't they sounding the alarm? why weren't they supervising which is exactly what they should have done. neil: jump on you, only for time purposes. >> that's right all right. neil: i want to get your sense who could be next. what is interesting, first republic was getting interests in talks with jpmorgan,
morgan stanley, to help them out. maybe provide some relief, some aid. that did very little to help first republic stock. i only mentioned that, there are other players, battered players out there that could suffer the same thing. maybe in a couple of cases through no fault of their own, lead to a bank run on mid-sized smaller banks that might now all of a sudden be under pressure as customers seek out bigger banks. then what do we do? >> well, it is mostly the regional banks that we're concerned with. that is where all the lending was taking place within the last year. as cost of money gets greater, joe roam powell has a interesting decision to make. does he raise interest rates to fight the stubborn inflation or does he get hawkish and hold the line for a bit, so that these banks can continue to do business. the interesting thing, neil, is nothing in washington is coincidence. if you look at the banks that we're talking about, silvergate,
silicon valley, and signature, in new york, they were all involved with high-tech businesses and crypto. it just so happens that it looks like our government is out to kill crypto. neil: interesting development. crypto more than held its own through the time being, throughout all of this. had gotten as high as 27,000 bucks a coin. last time i checked 25,000 level, 24,891. you can't kill it off that easily. so, what do you think? >> more importantly, neil, why is our government going after the crypto business? signature they initially announced the issue was they were banking crypto and making loans. they weren't. they were just banking crypto. even the new york financial services department, the head of that acknowledged crypto had nothing to do with signature.
barney frank, former chair of the house finance is ass committee, appears this is attack on crypto. two sources have told reuters that anybody who buys signature has to agree they will not bank crypto. so it is really interesting, neil. more questions to be answered. if you look at the fed which just announced this summer will release, going to kick off the fed now program which is a payment system that would settle payments within seconds, it is interesting, is our government competing with the private sector right now? are these banks banking crypto are a target of their angst? neil: that is a fascinating subset to the story. might be the story. interesting. congressman, thank you very much. good seeing you again. congressman tom emmer, minnesota republican, house majority whip. big cheese in debates going forward. meantime the markets are doing just fine right now. the dow up 141 points. what i find curious not all bank
stocks are soaring. i keep stressing what is going on with first republic. gotten interest of jpmorgan, morgan stanley. maybe in talks to provide aid. it has done squat to help that bank, a lot of other banks. a lot come well off the lows of the day. of course it helps that credit suisse from switzerland got a cash infusion to the tune of $54 billion. you would think with all of that the worst of these stocks would not be over. that is not happening. general markets buoyed by good economic news we'll get to later. luke lloyd following that, investment strategist. >> hey, neil. neil: luke, a talk of regional bank under duress ask talking to bigger banks about help that would be enough to turn around its stock. not happening, not happening to a lot of other regional banks that generally follow suit. what do you make of that?
>> yeah. so i don't know how far this whole thing will spread. i don't think this is the end all, be all for smaller banks and some companies and other sectors getting caught off sides. the government answer always to bail everything out. that is what the market likes right now. the market is up 1%, switzerland, u.s. government, all the world governments will pump as much liquidity and money into the system as possible. we don't live in capitalistic world anymore. it is socialistic. a lot of companies became lazy the past 13 years because of precedent set with zero interest rates. i tweeted this yesterday. if you incentivise bad behavior you get bad results. what do you think 08, 09, taught banks? taught banks there will aback stop, bailout when things go wrong. people get lazy when they know that. management gets lazy. management gets greedy, right? from an economic perspective when you patch a issue with a government solution all it usually does create other issues
somewhere else bigger. now at the first sign of a mismanaged bank or banks, the government is talking about covering all deposits, not just insured deposits of $250,000. what precedent does that set? in my world if you're a bad player in the game you get taken out of the game. that is capitalism. we live in socialistic world where there are no consequences, no consequences create bad behavior, ultimately bad results. neil: i was raising this with one of the house leaders, jim clyburn yesterday, he said this was not politically targeted this was institution run by democrats and venture capital firms that disproportionally funded democrats had nothing to do with it. furthermore, if this would happen in topeka, north dakota, we would have done the same thing. that in of itself the politics notwithstanding worried me because we can't afford to do this with every bank that
stumbles or worse is sidelined because there are a lot of banks out there and i'm wondering if kevin o'leary's view of this, maybe we simply have too many small, regional banks in this day and age. he was pretty blunt about that. i wonder whether you make about that, there is cash carrage to carnage come here what do we do about it. >> this is not political issue. this is a government issue. neil: exactly right. >> what happened in 2008, 2009. what happened in 2008, 2009 large banks got bigger, bigger essentially because of all the regulation put on smaller mid-sized banks. we disincentivized smaller medium-sized banks succeeding in especially higher rate environment. that is government control disinheriting capitalism. in reality had truly free market system, incentivise competition a lot more banks essentially, power wouldn't be concentrated.
government controls the issue here. this should be a wake-up call to know who has your money, with are your money is. everybody needs to do their own due diligence where your money is located right now. if you have done a great job saving, investing building wealth over $250,000, either have money spread out or cash invested in u.s. treasurys backed by the u.s. government. the fact of the matter is, a lot of people don't know where their money is at. they don't do due diligence. you get caught off-guard. government is there to bail them out, but they get caught off-guard. neil: all of sudden government says we'll insure you for the losses way beyond 250,000 for individuals, half a million for couples. you can ignore aforementioned worries. i don't know if that is good or bad thing. strikes me as worrisome thing. >> it is. bailouts, unlimited money printing. qe for 13 years straight people think we get back to apparently. this can't last forever.
cycles repeat itself. history repeats itself. the problem the cycles are becoming more extreme because of amount of government, federal reserve intervention. free market cycles are, exacerbated not being free, bailed out at any signs of turbulence. negative downsize getting caught off side is natural part of economic cycles. the problem from the political per specific tiff it takes away power from the people when this happens. incentivizes politicians, government agencies, to be short term-minded, short term thinkers because the free market can't be free. middle class average american pays for it through inflation, taxes or interest? neil: luke, you're way too young to be so wise. calm down. everything is -- >> i can't calm down. i tell it how i see it. i don't see a lot of good things. neil: well-said, one man. luke lloyd following those developments here. we told you about the european
central bank. i did the james bond thing, went ahead through all of this, raised interest rates half a percentage point. i believe they're up to 3 1/2% right now. the federal reserve has a meeting next week. this emboldened them to do the same thing. we're on that, the fallout for crypto after this. if you shop with the walmart app, you know everything you need is right at your fingertips. ♪ so you can spend a little less,
to get a little more, to make life a little better. so it's decided, we'll park even deeper into parking spaces so people think they're open. surprise. [ laughs ] [ horn honks, muffled talking ] -can't hear you, jerry. -sorry. uh, yeah, can we get a system where when someone's bike is in the shop, then we could borrow someone else's? -no! -no! or you can get a quote with america's number-one motorcycle insurer and maybe save some money while you're at it. all in favor of that. [ horn honking ] there's a lot of buttons and knobs in here. ( ♪ ) the future is here. we've been creating it for more than 100 years, putting the most advanced technology into people's hands. generation after generation. tool after tool. again and again. bringing you the broadest and most reliable network of service dealers.
always moving forward. we lead. others follow. my dad was a hard worker. he used to do side jobs installing windows, charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪
neil: take a look what is happening with bitcoin, now 23 bucks a coin to just under 25,000 bucks a coin. it soared over 26,000 a coin. probably off on the exact number. suffice closing in on 27,000 a coin. brock pierce with us now. bitcoin foundation chairman. what he makes of all of this. brock, you know, despite all of the efforts of so many in washington to kill off crypto, crypto related invests, make it harder to buy or even sell the stuff, or find a market that can trade the stuff, bitcoin itself, some of other investments more than holding their own. why is that? >> well i mean, this is, one of those examples where the promise
of bitcoin in terms of its correlation to traditional financial markets has finally separated where this banking crisis that we've seen with first with silvergate hasn't been in much of the media lately, what we saw with silicon valley bank, then signature, now credit suisse has definitely created a bull market for cryptocurrency and bitcoin being a big winner. we've seen, you know, a 20, 25, 30% lift in the price, in the midst of this crisis which is what we always thought what would happen in events like this. neil: do you need more bank bedlam to keep this going, or does it have a life of its own? >> i think it has a life of its own. this happens to be what is impacting the market here in the short term. clearly for the well-being of everyone, we don't want this banking crisis to worsen. it is not a good thing. but, yes, it had a positive
impact on the crypto markets. i talk to people like kevin o'leary, who are convinced, while not a crisis, put it bluntly, there will be an adjustment going on. we might see a lot of small, regional banks go. i don't think he was saying because they're in trouble but that they might be passe in this day and age. people gravitating to online institutions and the like. the bigger banks that are well-funded and obviously a lot less leveraged than they were. what do you make of that? how something like that would affect crypto investing? >> well i agree with that statement in terms of being passe. young people don't go into bank branches anymore. human behavior is changing. and so, as the world continues to turn, and the older get older, pass away the way that we bank is changing. it is definitely online. it is mobile and, you know,
retail sort of branches are not going to differentiate. the big will likely get bigger and nimble, innovative online, mobile banking businesses will likely be taking away market share from small regional banks that doesn't have digital in their dna. neil: a lot of people still like this whole technology. rogue investment, whatever you want to call it, brock, but they're having a devil of a time to find a place a safe place to trade it. isn't that the dilemma? >> i mean that is definitely a big part of why the crypto prices have been down. with what we saw with ftx, what we saw with terra luna, that ust, as well we've seen with the defy applications like celsius, blockfi, voyager. as an expert in the industry i struggle what platforms should we use, the regulatory conversations are clearly happening in d.c. and at a
regional level. i'm here in ukraine right now. i was talking with the local regulators here in kyiv and clearly they're really focused on digital, digital and innovative solutions due to the unfortunate, or terrible circumstances that they're dealing with here. neil: yeah. put it mildly. brock pierce, bitcoin foundation chairman. thank you very, very much. i do want to take you before we go to break here what is going on in paris right now. in case you didn't hear, emannuel macron got his pension reform through without a vote, exercising something called article 49.3. if we could show a cityscape if we have it. allows someone to push through a vote, this is from wednesday, i don't want to scare, this is not going on right now, but there was a great deal of resentment about this all of sudden raising the retirement age to 64 from 62, phasing it in over seven years, people were not having
it. in fact there was overwhelming support not getting it, making sure emannuel macron heard them loud and clear. he heard them loud and clear, went ahead put it put it through without a vote. lawmakers have 24 hours to file what they call a no confidence motion. in other words you have no confidence in the leadership but need 10th of a lawmakers in the lower house, sorry to get arcane, this is not a done deal yet, allow a measure to cancel this to go to the floor. they believe they have 10% of lawmakers to go to the floor. conservatives said we're fine with this we're fine with what emanuel macron wants to do. looks like this no confidence measure to topple the government will not likely succeed. now when they have that measure, it would negate the prime minister and cab knelt. in other words they call go in a no-confidence vote.
a ballet studio, an architecture firm... and homemade barbeque sauce. they're called 'small businesses.' but to the people who build them there's nothing 'small' about them. that's why at t-mobile for business... you'll save more than $1,000 versus verizon. and with price lock guarantee, we'll never raise your rate plan. so you can keep your focus on toe-turns and making sure the sauce is extra spicy. at t-mobile, there are no small businesses. ♪ my ameriprise advisor has helped me navigate uncertain times before, now is no different. with his advice, i'm confident i'm on track. the plan we created is for the long term. no wonder clients rate us 4.9 out of 5 in overall satisfaction. ameriprise financial. who's on it with jardiance? ♪ ♪
we're the ones getting it done. we're managing type 2 diabetes and heart risk. we're on it with jardiance. join the growing number of people who are on it with the once-daily pill, jardiance. jardiance not only lowers a1c, it goes beyond to reduce the risk of cardiovascular death for adults with type 2 diabetes and known heart disease. and jardiance may help you lose some weight. jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration, (that can lead to sudden worsening of kidney function), and genital yeast or urinary tract infections. a rare, life-threatening bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this infection, ketoacidosis or an allergic reaction, and don't take it if you're on dialysis. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. a once-daily pill that goes beyond lowering a1c? we're on it. we're on it. we're on it with jardiance. ask your doctor about jardiance. when you stay at a vrbo you always get the whole home
because is it really a vacation home if you have to share a house with a host? ♪ only with vrbo meet a future mom, a first-time mom and a seasoned pro. this mom's one step closer to their new mini-van! yeah, you'll get used to it. this mom's depositing money with tools on-hand. cha ching. and this mom, well, she's setting an appointment here, so her son can get set up there and start his own financial journey. that's because these moms all have chase. smart bankers. convenient tools. one bank with the power of both. chase. make more of what's yours.
♪. neil: all right. in our country a president has an executive order but it really doesn't carry much clout. eventually it runs out of steam. in france they have executive orders but with a different sort of a twist. they can get, that is a country's president can get what he wants without the issue coming up for a vote. emanuel macron had been pushing as you heard over the last months, been repeatedly over the last couple years, a measure to rein in entitlement programs, pensions in that country simply have gotten out of whack, remained unaffordable. his proposal was to combine 45 of them into one, phase in a new retirement age, 62. it would be raised to the 64 in the next seven years. a lot of workers there didn't
want anything to do with it but it did pass the national assembly, france's so-called lower house of parliament without a vote. he is free to do that. without getting arcane here i think it bears repeating it activates something called 49.3 in france where you can push a measure through without a formal vote. opposition lawmakers have 24 hours. the clock is ticking they are have, to file a no confidence motion against the government. it is tough. not tough to get it to the floor, you only need 1/10 of lawmakers to do that but they have got that but the votes are not there to make it happen. in france lawmakers have a tough time toppling presidential wishes might not be very popular. but the votes are not there, override their version of an executive order. so as things stand now this new measure where you're going to raise the retirement age in france, will stand or likely will stand, even told from a mum
number of contacts there not going down well. we'll keep track of that i meant to explain that sorry for the length. it comes as we're looking at entitlement programs in our country, what the two parties can cobble together to make progress. there are no draconian quick fixes there. no automatic laws to make it happen. i think my young friend luke lloyd would wish in this case that we had something like that but we don't. luke what do you make of what went down in france? >> yeah. to me when one person can make a second decision impacting out of national security or defense that is crazy to me. that is not in the best interests of people they represent. people are angry, how much the government over in europe controls their life. we're getting to that point here in america. the fact that people are mad about raising the retirement age says a ton about the system itself. it says that system is flawed. the reason you raise the retirement age for government or
pension programs is to funnel more money into the program, to have ultimately less outflows. that means the program doesn't work. it proves in itself government programs, pension programs, entrusting someone else with your money is not a great idea. they're not very good with your money. neil: maybe it proves the opposite. maybe it proves through a draconian measure, not even aware this feature france has, it can force extending a pension program, sustain it with more money coming in and fewer benefits going out in the future as they raise the retirement age. should be a lot more than 64. i think they're pushing it to0 in this country -- 70 in this country. gives you a little bit of wiggle room. would we do it here because we have the same math they do? >> here is the problem, neil, throughout time what is stopping any kind of government or any kind of pension program from continuing to extend it or change the rules, right?
that's the problem. once you set these kind of precedents it gets worse down the road. most of these problems mr. not efficient. they do run out of money. they are not there forever. we'll be dealing with exact same thing like you're talking about here with the social security system in the u.s. if people over in europe, here in u.s., taxed less, people would be much more in control of their fate when they're able to retire. when they can make their own money decisions how they will invest their money, spend their money, spend the discretionary income. nobody wants to work for the man their entire life, leave choices up to the people by putting more money in peoples pockets, right? government should not make decisions for people. that is ultimately the issue. rules can be changed. neil: as a young person yourself, social security seems like a dream, luke i'm set, i got your money. that is just the breaks. >> yeah. you got my parents money and your money. you got your money. you paid into it forever, you
should absolutely get it. neil: my point is, my point is, you know there used to be time in this country, like in france, a lot more people paying into the retirement and pensions than were taking money out. in france it is almost one-to-one, as hard as that is to believe. it is two to one here. that is not sustainable. >> yeah. neil: wouldn't you give them a tip of your, i don't know hat, what you want to use as french version say this is at least a move toward recognizing the math? beret. i should have said beret. >> absolutely. at the end of the day, again the problem these rules can be changed. it is taking power away from the people. that is the fact of the matter at the end of the day. i just don't like the government with my money. my friends, everyone my age right now is dealing with huge inflation issues. you are taxed, almost half the money goes to the government,
property taxes income tax, sales tax. we pay for huge inflation issues all around. we're taxed double essentially when you include inflation. the problem if we're taxed less we can invest more money by ourselves. we're more efficient allocating our money. some people are not efficient. that is okay. it gives them the choice. i'm tired the government making choices for me. neil: all right. you're throwing raspberries at this beret? sort of a prince -- >> i am. neil: fine. prince was a singer, luke, back a few years ago. anyway, you're the best. >> listen, i like prince myself. i am more of motorcycle call jackson kind of guy. neil: all right, fine. i heard of him. luke, great seeing you. great discussing this. on going issue. what happens over there could come over here. meantime something has been going beneath the surface bears watching too. interest rates will rise, one fed controls maybe as soon as next week. but market rates, they have been tumbling. so you would think for those seeking a mortgae a
home they're already in. your ship has come in, just when you thought it was lost out toa. (man) what if my type 2 diabetes takes over? (woman) what if all i do isn't enough? or what if i can do diabetes differently? (avo) now you can with once-weekly mounjaro. mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat.
3 out of 4 people reached an a1c of less than 7%. plus people taking mounjaro lost up to 25 pounds. mounjaro is not for people with type 1 diabetes or children. don't take mounjaro, if you're allergic to it, you or your family have medullary thyroid cancer, or multiple endocrine neoplasia syndrome type 2. stop mounjaro, and call your doctor right away, if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, vision changes, or diabetic retinopathy. serious side effects may include pancreatitis and gallbladder problems. taking mounjaro with sulfonylurea or insulin raises low blood sugar risk. tell your doctor if you're nursing, pregnant, or plan to be. side effects include nausea, vomiting, and diarrhea which can cause dehydration and may worsen kidney problems. (woman) i can do diabetes differently with mounjaro. (avo) ask your doctor about once-weekly mounjaro. new projects means new project managers. you need to hire. i need indeed. indeed you do.
when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. 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. i'm so glad we did this. edward jones ♪ what will you do? will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you.
(vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once and get closer to iconic landmarks, local life and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort.
>> someone who uses the banks, that is a concern, i don't know if my money is safe or not, you know? >> i'm not worried. i'm young enough. it will pick back up there will be dips. you have to roll with it. >> we do like to go know the government has our back. >> we're protected, everyone has money is protected. government makes sure they're not losing money. i guess i'm not too concerned about it. neil: depends who you talk to but a lot of americans given
developments with banks under considerable duress, many still are marketwise government will have their back. only some backs the government can have here look at the numbers. kelly o'grady looks at all of this in los angeles. kelly. >> reporter: great to see you, neil. yes, all eyes really turning to the regional banks. of course a good example would be the one i'm at first republic. very much in the news today with reports of that cash infusion possibility or maybe outright acquisition just to orient you, the fdic define as regional bank one having 10 to 100 billion deposits. kind of mid-sized. they're so important, small business americans across the country depend on them. regionals frequently offer more flexibility than the larger banks when lending to small businesses that might otherwise be ignored. just to give you a sense of vulnerable, 4 trillion loans are held at regionals. that equates to 36% of all-out
standing loans. a number reasons banks are under pressure but number of uninsured deposits. 90% of svb's were uninsured. not that bad for a lot of regionals. up to 50% uninsured. we're seeing volatility in the stocks. deposits flowing out. bank of america says 15 billion come in since svb went down. those perceived as too big to fail, they become even bigger. neil, yesterday on fox news you spoke to senator lankford. i thought he made a interesting point on notion too big to fail, insent advising customers to flee regionals. >> let me put it in a bigger bank because they will be automatically bailed out no matter how much is there. not put in community banks. we're seeing a shift over to hurt commune banks. this administration is intentionally or unintentionally hurting community banks. >> reporter: it leaves those regionals vulnerable. it could also leave customers vulnerable but they could go to
banks that won't provide the same loans and services. it is an immediate problem. that could hurt them long term thinking about the health of their business. a lot to consider. i send it back to you. neil: thank you, kelly. you heard this from a lot of people, your coverage from this has been stellar. this is complicated stuff we have to share with the american people, put it in a way we can appreciate without scaring them. kelly o'grady in california on that. another development maybe because what kelly has been reporting on. look at this, banks, 10-year 3 1/2%. gotten as low as 3.42%. remember when this was over 4% a week ago. commensurate drop in mortgage rates, you would think would get mortgage applications stirring. we don't have any real evidence of that just yet. maybe people are holding off. maybe banks could be holding off, lending get the latest from
daniel kotsi, key player royal palm company based in florida. good to see you, daniel. how would you describe people and their reaction to this sudden drop in interest rates, not the rates that the federal reserve controls and are expected to go higher next week but market rates? >> look, i mean people in general are worried. as we were talking about the regional banks, that is a major issue. that is where for instance, we're developers. a lot of our construction financing come from regional banks. so the impact of, you know fallout here of something like this happening with, with the regional banks is definitely, is a large concern. mortgages of course is going to be a concern because, can people, are people going to be able to get mortgages. there will definitely be impact to the real estate market. depends where you are. long term dynamics in real state
are very strong. we're in the state of florida. state of florida has right dynamics for very strong real estate market. so i think long term we will be final though, we got to see what the short-term fallout is with specifically with regional banks. neil: now for development activities or even developments you're planning, financing, supporting, have you seen any chill in activity? are you slowing down? have you been forced to hold on some, what? >> so, look, the market in general, the real estate market, development market banks in lender in general stopped lending towards end of last year when interest rate hikes started getting intense. so when that, you know when that happened, so that already has slowed down. so, yes, if you're dealing today with a regional bank, trying to get a loan, they're going to go on hold right now. the regional banks are all, really looking to see how, you who the fallout is. then you also have institutional
lenders. one of the things people realized, after 2008 the banks stayed out of construction lending. most larger banks stayed out of construction lending which developed a void for these institutional lenders. you have large institutional lenders do a lot of construction financing. now these institutional lenders they sell parts of their loans. a lot of buyers for these loans are regional banks. it all comes back to how the regional banks are going to react to this fallout and, you know, what is the impact going to be, overall in construction financing? so we're keeping a close eye on that. neil: keep us posted, daniel. very interesting even in your neck of the woods you have a booming economy. obviously a good economic wind at your back. we'll follow this very, very closely. good seeing you. meantime here with the dow up 216 points, let's get a preview what is coming up on
"the big money show." brian brenberg to do the honors. brian: neil, white house says banking system is a-okay but we have crisis of confidence. a new member of the biden family getting cash from china. more "coast to coast" after this. ♪. did you ever stress about us having three kids? no, that was always part of the plan. three kids?! this was never part of the plan! these kids order the lobster mac 'n cheese! what if she wants to play golf? we're going to have to outlaw golf. absolutely no golf in this house! not under my roof! since we started working with empower, all of our financial questions have been answered, so we don't have to worry. so you never- nope. always part of the plan. join 17 million people and take control of your financial future to empower what's next. start today at empower.com this isn't just freight. these aren't just shipments. they're promises.
promises of all shapes and sizes. each, with a time and a place they've been promised to be. a promise is everything to old dominion, because it means everything to you. (fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our clients' portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different. covid is still out there, and so are you. and you could be out there with fading protection but an updated vaccine restores your protection so you can keep doing you.
♪. neil: all right. taking a look right now, dollar general, down a little under 2% right now. disappointing numbers, talking about maybe a slowdown of consumer spending. if that rings a bell it should. heard similar sentiment at five below. federated department stores, macy's individually some others on retail sales number i believe it was out third time in four months activity had declined. so should we be worried about this? is this why the dow is doing well, up over 300 points, maybe that limits the need for the federal reserve to hike rates. we loo luke basnese. smart at this pants. luke, help me with the retail
data, one year long campaign of raising rates year #today is starting to have impact a year later what do you think? >> year later maybe. here is what i would tell you, when these bargain basement retailers start to thrive you have to get ready for the economy to nosedive. if you dig into the results, five below went for three quarters of earnings decline. last two quarters shown a nice growth. dollar general had the fourth quarter in a row of accelerating revenue up 18%, $10 billion. they have a plan to build one thousand stores the coming year. that is not a good sign for the economy, when bargain basement hunting is a boom. a lot of people out there are still rhett at this sent to say a recession is dead ahead. they have to argue until we see broad-based jobs declines. that is waiting for cancer, for tumors to spread all over your body there are early warnings. you mentioned them. retail sales numbers starting to fade. look at january's blowout retail
sales numbers, one of the components, last hurrah was biggest gainer in january, 13% bump was bars and restaurants. almost like, forget give me liberty, give me death, freedom from covid before i run out of spending money. i just think the consumer is strapped. we're seeing it across credit card balances. interest rates are going up. you think i'm a smarty pants. i'm just a consumer guy. neil: that is perceptive. this is area where that is the first sign of trouble people are flocking there. late indications maybe they are. but let me ask you, the market seems to like that kind of news, for for those retailers, the notion maybe the fed can reverse what it has been doing. what do you think of that? >> yeah. market is schizophrenic patient. they're hoping the fed will stop next week. think about two, three weeks ago, we had the whole new term
of no landing, right? the fed would perfectly thread the needle. now i think you got the hard landing back on the table. whether the fed pivots, pauses or panics next week does it really matter? one 25 or 50 basis-point hike, getting rid of that off the table does that change the impact of just a massive acceleration? you brought it up, there is a lagging effect we're going to start seeing that in the next six to 12 months. neil: very interesting stuff, lou, appreciate it. lou basenese on that. dow up 287 points. stay with us ..
>> welcome back to coast to coast. i am grady trimble on capitol hill. the biden administration is taking its toughest stance on tiktok today, telling the apps find a buyer or face a ban. today, tiktok is firing back, telling us if protecting national security is the objective, the vestment doesn't solve the problem. a change in ownership would not impose new restrictions on data flows or access. tiktok wants a third-party to oversee user data in the apps's algorithms but on capitol hill, a growing number of lawmakers come republican and democrat, want to ban the apps or give president biden the authority
to do so. some tell me divesting to an american company isn't enough. the ceo of tiktok will be on the hill next week and he is sure to face a grilling from lawmakers from both parties. neil: people are saying we cut ties and entirely or leave this thing entirely. no good choices for those in china who want to keep tiktok going. we leave you with the dow up 320 points. not all regional banks are going along for this ride but the fact we are getting indications of a weakening economy, bizarre as that stands, now, the federal reserve doesn't like that, we will see. brian: i hear you talking about raspberry berets. you are a prince fan? not a lot of fans
IN COLLECTIONSFOX Business Television Archive Television Archive News Search Service
Uploaded by TV Archive on