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tv   Making Money With Charles Payne  FOX Business  March 17, 2023 2:00pm-3:00pm EDT

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doc's been so up front -- tiktok's been so up front about saying if we get sold, it's not going to the fix any of the security problems. that's the ultimate way to fix it, take it -- jackie: i'm sorry to cut you off, there is a headline about the justice department probing tiktok's tracking of u.s. journalists. this is going on a developing story, and in the wake of all the twitter stuff, i think it's going to be the huge when we have conversations about security threats and what is going on at tiktok. brian: great point. jackie: sorry to -- brian: no, one more reason why the hard break seems like the necessary break. jackie: today was so much fun. -a fun friday, and we're going to the os the it over to charles payne. markets down 332 the. charles: thanks a lot. thank you, have a great weekend, guys. good afternoon, everyone, i'm charles payne. this is "making money." breaking right now, stocks opened lower, but right now they're holding their own. be honest, it feels like a weekend that could be eventful.
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so much has happened behind the scenes this week that sort of countered the notion that the banking system itself is strong or solid. but by the same oak then, signs that the -- token, signs that the economy is resolved. the gdp estimates keep going up, fedex earning came in, doesn't seem like a recession's going to happen anytime soon. how does all of this affect jay powell and the federal reserve? will they shift gears? because right now wall street is modeling maybe one or two more rate hikes and then a whole bunch of cuts. anastasia amorosa is with us, also ed yardeni. also scott martin is saying buy banks. and where would market be without megathat-cap -- mega-cap tech nameses? what's ironic, of course, wall street said don't buy these names, now they're coming around. the big question, of course, is it too late? plus, my takeaway on not throwing in the towel on american exceptionalism. all that that and so much more
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on "making money." ♪ ♪ charles: so while secretary of treasury was telling congress that the banking system was, quote, healthy and the system itself though, folks, was making all kinds of maneuvers akin really to a country bracing for an armed invasion or imagine if like a coastal community preparing for a massive tidal wave. you've got the discount win eco, the federal reserve discount window, it surged $152 billion in the week that ended march 15th. and to put that in perspective, the week before it was $4.6 billion. according to the fed, of course, these are extensions of credit to help to the alleviate liquidity strains. this number qualifiers periods and peaks that we saw in -- dwarfs periods we saw even during covid. . that was just the first three days of the week. and on monday we saw $112 the
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billion, the funds will be advanced to community and regional banks where there's outsized liquidity demands. by the way, the fed also extend thing $143 billion to the fdic, and then there's the new, shiny gadget in the fed's toolbox, the bank term funding program, btfp. try to say that three times quickly. so far it's one of these things, of course, just to remind you where banks have these the long-term assets that are par 1 is 00% but right now trading at a kiss count. they can go -- discount. they can get par for them right now, so far just $12 billion but, remember, that program just came out the gate. i think the administration is making a monumental mistake by trying to focus on spinning all of this and really trying to make it political. but i think they're also trapped by these swift actions to bailout the billionaires of silicon valley suggesting if hay had not bailed out venture capitalist firms, small
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companies around america would not have been able to make payroll. by the way, 4% of small businesses do a million dollars or more in revenue, and most of them would be thrilled to have more than $250,000 in the bank which we all know by now is covered. everyone is covered by the fkic including those -- fdic, include colluding those small businesses. yesterday senator lankford of oklahoma wanted a clear answer on whether depositors of banks in his state would be bailed out the way silicon valley bank was bailed out. he got a mixed response. >> will the deposits many in every community bank in oklahoma regardless of their size be fully insured now? are they fully recovered, every bank, every community bank many in oklahoma regardless of the size of the deposit? will they get the same treatment that svb just got or signature bank just got? charles: i'm not going to play the yellen response because it was a lot of equivocating. i'll just cut to the chase, the answer is no.
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[laughter] if you're in a different state, you've got more than $250,000 in the bank, you will not get the same treatment as the richest zip codes in america. maybe another intangible part comes down to trust, right? we have to trust the system. americans began taking record amounts of money out of deposits last year. and the industry mostly yawned. check this out, december 1st, the last year -- of last year, then-acting chairman of the fkic noted that third quarter unrealized losses, $690 billion. that's an eye-popping number, but it was up 467% in just three months -- 47% in just three months. should have been a red flag. however, additional interest rate increases combined with longer asset mature is may present a challenge for the banking industry in coming quarters. that was also part of the statement. so, you know, you've got these the unrealized available for sale losses, held to maturity losses, and it's really scary stuff. and that's just going back to the second quarter9 of last
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year. meanwhile, the deposit insurance fund balance $125 billion in september, up $1 billion for the end of that month. again, absolutely amazing. we saw this thing growing slowly and slowly and slowly. here's the thing, folks, want to go to the fdic because they also issued a warning, or a letter, if you will, in december and still a lot of people have sort of ignored this letter which more or less said, hey, we are getting closer and closer to a financial crisis. and it's one of these things that every guest that i've brought on more or less said it's no big deal, the banking industry said it was no big keel. so concern but it was a big deal. it was a major, major with, very, very big deal. so here we are at this moment in time, we need to know what's going to happen because a lot of things are happening behind the scenes, really frightening things, so we're lucky to have some of the best in the industry. want to begin with ann says ya omarosa. first of all, i went on twitter last week and gave you props on
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your 6.5% call -- >> i knew you'd bring that up. [laughter] charles: we'll put it on the shelf for now. a lot of moving parts to all of this. i'm concerned about all of the actions that have been taken this week whether it's the discount window, federal home loan, whatevers the, billions of collars -- whatever it is the, billions of dollars being shifted around, feels like they're bracing for something. how concerned are you? >> that's right. banks are not taking any chances, nor should they. the environment we have today the is if you want to get return on your cash, you don't park it in a non-interest-bearing checking account or a low-interest-bearing savings account at a bank, you go to a money market thats' tied to a fed funds rate or a t the-bill x that's exactly what's been happening. if you look at the overall system industry deposits, they've been crawing down but not massively. the issue is once one set of depositors starts worrying about it, it spreads like wildfire -- charles: right. i think it's it's sort of ironic that a lot of the banks that are
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benefiting are the banks that have given people squat. [laughter] bank of america, chase, they're not giving anything, but they benefit from this image offing being the fortune-sized balance sheets, they won't go out of business. but to your point, okay, you have where the $200 billion, 370 billion,, right? this was september of last year. u.s. deposits fell by a record $370 billion. and everyone was sort of like, ho-hum. this line really caught my attention. it isn't a problem for banks which are sitting on more deposits than they want. so there was a sort of arrogance within the banking community like it's no big keel, but now we're learning, of course, to your point that people saw this. why were they taking this money out? they were seeking yield. >> right. bell -- well, it's not a big deal if you're north dakota not lending a big portion -- if you're not lending out a big portion of your deposits. but if you look at some of the more smaller regional banks,
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they're lending out 80, 85, 90% of their deposits, so they can't actually afford to see those deposit outflows. and, charles, my point is we sort of had a patchwork of solutions so far, you know, week to candidate, so to speak. and this is why the markets keep testing the fed, they keep testing the policymakers and saying this is not a comprehensive solution. and as long as rates are high, deposits are likely to -- with higher cash yields, and we're going to be in this vicious cycle, so to speak. charles: again to the idea that this snuck up on the industry. so this december 1st acting fdic chairman, you know, issued -- talked about the 47% quarter over quarter jump in unrealized losses but also added this: higher market interest may also erode real estate and other asset values. so, again, it was there, the writing was on wall there. michael hartnet over at bank of america put out a pretty intriguing set of scenarios.
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i want to walk through them, see how much you agree with. he's saying now these bank emergency borrowing programs that are going into place equal to or create tighter lending standards. we already, by the way, saw that in the last survey. small business credit's going to be crunched, higher unemployment, a tipping point for the u.s. dollar, and the start of high inflation and budget deficits. how much of that is he right? >> that's a lot. let's unpack the very first part of that statement which is bank lending standards will be tightened. i absolutely do believe that as a result of everything that's happened. title lending standards and then, again, banks are going to be trying to manage how much of these goes sits they loan out, so they're going to loan out less. all things equal, the event that's occurring now is a deflationary one. it's not going to solve all of our inflation problems, but this is part of the reason why i think think the fed going into next week has to probably stop and assess -- charles: so they should do
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nothing. here's the interesting thing, the ecb went with 50, in part because they felt if they didn't, that would have created a panic, and turns out the markets did pretty well after the ecb. do you think we may look too deeply into the fed that doesn't go 25 basis points that maybe this is a worst, you know, could actually fan the flames even more? >> i think it's a different situation, the u.s. versus europe. in europe it is truly a credit suisse issue, and the same kind of bank deposit outflows might catch up with them, but that's not on their front door right now. for them, 50 basis points was a vote of confidence. for us, every regional bank and every bank period in the u.s. is keeling with the set of issues that we're talking about. is so for the fed to the just say we're going to ignore that, park that and pretend like we fixed that, i think that doesn't send a message of confidence. so they have one of two choices, they can either pause right now and say we'll sort out and get back to the rate hikes, or they hike 25 the basis points and say we're going to see what happens
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next. charles: right, right. >> either way, i think the vote of confidence that the market would want to hear, that i would want to hear is let's get this particular issue under control -- charles: stability takes press kens over price and everything else because it's so uncertain. >> for now. and, charles, things move fast. in a week's worth of movement, we saw such a -- charles: do you ever get back to your 6, 6.5% fed funds rate? >> yeah, so i want to get back to that conversation because i believe if we do pause now, if we coget the banking situation under control, again, two months down the road if banks are stabilized and if inflation is still what it is today and if the economy -- by the way, this quarter's on track for 3% gdp growth, then the fed might be able to say, okay, let's get back to rate hikes. i think given what we know today and some of those lags that apparently are evident now, they have to take it a little bit slower. charles: maybe they broke things too quickly, we'll see.
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appreciate you, anastasia. all right, folks, yardeni research president ed car kenney. ed, i know in the note that you put out earlier in the week you wrote that all of a sudden we're hearing more chatter about deflation. yes, that's right, deflation. so you're not buying that, are you? >> well, i don't think we're going to have outright dethe nation, but i've been in the camp that believes that inflation is moderating and that it peaked in the summer of last year, and i i still believe that. and everything that's been happening of late only increases downward pressure on inflation. so i think the fed could very well stop here and find that inflation continues to moderate on it own. charles: so what do you make so far of the handling of thingsesome i mean, listen -- things? i mean, listen, to anastasia's point, things happen quickly in football markets. >> yeah, very -- in financial markets. charles: we go from 0 to 60. what do you make of the handling and the anxiety that the you can
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certainly taste in the air? >> yeah. i think the problem is that we all remember what happened during the great financial crisis, and there's a certain sense of déjà vu all over again that, you know, starts with one, then another, and before you know it it's the kind of like the hitchcock if film, "the birds," which you still don't know how many birds are attacking us. i think the fed has a lot of experience with emergency lending facilities, and they moved very, very quickly here with the facility to the basically support the liquidity in the banks, and they did more or less come out with a blanket statement that these liquidity facilities are aimed at helping banks protect their depositors. so it's not that all of a sudden we all have our deposits insured, it's just that incorrectly -- indirectly the attempt of the federal reserve is to help the banks manage their affairs as best as they can -- charles: right. >> -- in order to protect
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deposits. charles: you point out that in the first week of march, loans and leases at banks totaled $12 trillion, so we saw money go into domestic big banks and small banks at record levels, by the way, so you're saying no credit crunch at this time. does that mean -- the at this time, right? not to say it's much ado about nothing, but to reference the movie "the birds," the next day service the all over, right? it was scary, but then all of a sudden we were back to normal. >> well, things have been moving very rapidly, as you've been pointing out, and it's very possible that within a few weeks everybody will calm down, feel that the banking system's intact, is it really going to stress out the way it did during the great financial crisis, and we'll calm down and find something else to worry about. charles: what do you make about the market itself, the amazing result in mega-cap names? is it because they're so big that they can survive, they don't need to go to banks, they
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don't necessarily have to worry about a credit crunch? >> well, for a while there was a widespread consensus that you wanted to be in value and growth, and value includes the banking stocks as well as airlines and several -- charles: but i mean the technology names like the googles and the microsofts and the nvidias. those names have been amazing. >> yeah. yeah, absolutely amazing, and that's what i was getting to that the the market always likes to surprise us. instead the of the value stocks doing well, they've done terribly because of the banks. and meanwhile, growth stocks led by the mega-cap eight have been doing very well. so i think this is a vote of confidence in the overall economy because if the overall economy was going to go into a major recession, these stocks would not be doing well. ing. charles: a lot of great points. ed, thank you so much. have a great weekend. >> thank you. charles: all right, folks, coming up, warnings ahead of this whole svb collapse.
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stephanie pomboy's been one out there who was screaming at the top of her lungs, watch out, watch out, watch out. now we need to find out specific specifically what she's worried about 0d. my next guest, however, is still liking some banking names, victoria fernandez shares what she's doing in the midst of the storm, next. ♪ i'm on the hunt, i'm after you. ♪ i smell like i sound, i'm lost in a crowd concern the. ♪ and i'm hungry like the wolf ♪ your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...
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charles: so despite all the anxiety, these emergency measures within the banking sector, for the most part i know there's a lot of red on the screen, but the market's holding up a lot more, to be quite frank with you, at 8:00 i didn't think we'd be up this much or down the less. it's time like this, however, when you've got to be resolved as an investor. and here's the problem, a lot of people make binary choices, you can either be opportunistic or flee. our next guest says you should be thinking about the former. i want to bring in victoria fernandez, so explain how you take advantage of sort of these periods of anxiety, increased volatility, market pressure. >> absolutely, charles. i mean, we have been talking for
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years with our clients about having that shop ising list and being opportunistic with what's going on in the market. and i think this is a % example of how you can do that the concern a perfect example of how you can do that. you have the banking sector, the financial sector that's within hit tremendously with what's been going on over the last week, but you know we've said it's the quality names that do well during times of volatility. so quality meaning good governance that they have, their business model is strong and their balance sheets are strong. so you look at a name like jpmorgan in the middle of everything, they've got tier one capital ratios, higher than their peers. they've been moving their cash position up over the last few months con continuously. they're at 15% cash right now at jpmorgan. so you take that, you take their diversification of their business model, they're not concentrated in one area, they're broad-based. that's a name that you can put in your portfolio for the long
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term that's been hit now but is going another the better going forward. charles: yeah, this is no doubt. i mean, we've been at this a long time, both of us, and it's always like a year later -- sometimes it's a week later, but certainly a year or two later, you say, golly, it just felt so easy, right? with but at this very moment, your thoughts on the banking crisis itself. do you think it's the going to be con indiana thed rell live -- contained relatively in short order? >> i think it will be. at least the immediate kind of chaos will be contained in the short run. so it's a few banks. we know a that they had concentrated levels of certain things in their banks. we know that they took risks with their deposits and they didn't have the cash positions that they should have had. but, look, what because it do on a broader base? well, it tightens financial conditions. you were talking about that a little bit. it causes the fed to maybe go a little bit slower. i still think they're going to go 25 the basis points next week. it allows them to take a little bit more time and slow things down. so i think there's going to be
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the immediate chaos that we've been in this week, but longer term i think it'll allow us to go a little bit slower than maybe what we were going to go before, and the market can the digest that. charles: we had retail sales out which were more or less in line. there's a part of it, though, called the control group that was the up big, suggesting still a lot more strength with the consumer. as an investor, do you buy consumer staples because of the typical historic safety or discretionary to continue to leverage off the still-strong consumer? >> i think you can have a combination of those. but, look, if you think there's going to be a recession, charles, like we think we are going to have a mild recession that's probably been brought forward a little bit, some of those staple names that still have exposure to the consumers like lowe's, the housing market it looks like probably has bottomed, and lowe's has stayed strong throughout the turmoil in the housing market. so i think you can leverage the consumer there. and you look at something like a general mills, even if you go into a recession, consumers are
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still going to buy cereal. maybe you don't go out to celebrate something, but, you know, you're going to buy a betty crocker pineapple upside down cake, my favorite, and you can make that at home and celebrate. there's still some areas where the consumer spends and supports the economy and supports spending, so i think those are names -- charles: you had me at honey nut cheerios. victoria, always appreciate your wisdom and your calm. all right, folks, coming up, some in the media using the silicon valley bank collapse as an excuse to blame president trump. not only is it a waste of time, but in many ways it's making things worse. first though, liquidity, right? that's what we're talking about, a liquidity crisis. so how would that affect payment companies like visa and mastercard? there's only one person to ask about that, it's lisa ellis, and she's next. ♪ ♪
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charles: so the question now, this liquidity crisis, we're seeing it play out in small banks particularly, but how because it impact major companies like visa, mastercard? let's bring in lisa ellis, senior managing director at svb securities. lisa, just how vulnerable are the payment companiesesome and in light of -- i'm not sure if you saw with -- what michael hartnet had to say earlier today over at bank of america, but this is the she scenario he laid out. tighter lending standards, small business credit crunch equal higher unemployment, a tipping point for the dollar. he goes on to talk about entrenched high inflation and budget deficits. still a strong u.s. consumer? [laughter] >> yeah, well, no question that
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the current banking crisis puts more pressure on the consumer, particularly given that a disproportionate amount of spending in the u.s. is, of course, driven by the more affluent consumer and a lot of the effects of the last week are most directly affecting, you know, folks in silicon valley are, folks banking with first republic. these are all on the upper end of the spending group. so you can imagine that may very well trickle down into a little bit of a slowdown in spending. the reality is though up until literally the beginning of last week when we saw numbers through february, the numbers on consumer spending remained absolutely rock solid and, you know, super strong. so we'll have to the see, i'd say probably depends a lot on whether this settles down now or whether we see weeks ahead where we're continuing to see sort of the ripple effects, yeah. charles: the payments in particular, payments area or is coming under more, i would say, harsh scrutiny. i mow the u.k., the financial regulator there threatening to
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shut down the payment companies that are offering bank-like services without a license. we saw some of this stuff in the crypto area where things were being offered, you know, these products with these amazing interest rates, and it turned out to backfire. do you think this sort of discipline should be foisted upon the payments area? it seems like in a way it might be a good thing. >> yeah, i agree. while i don't typically, necessarily agree with a lot of added regulation, in this case it's actually simply saying, hey, if it looks and acts like a bank, it should fall under the same, you know, a lot of times it's consumer protections that consumers expect from these bank-like services like insuring positive sents as we've seen, you know, come in over the last week. charles: right. >> but also things like just fair lending practices where you have clear marketing if you're giving someone a loan, you know, being very clear that this is a loan, you have to pay it back, that there's interest rates associated with it, etc. and a lot of, i'd say, fin-ecs
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have been able to skirt those rules because many of them are not actually licensed as banks, and the u.k. regulator has come in on that. the cfpb has started to lean in on that, and i think that's healthy for the ecosystem. charles: you've been pretty strong on mastercard, visa saw and a few others. are they still buy and holds at this point? >> yeah. i love american express, visa, mastercard. the core networks, they are three of our favorite buys. they're easy, you know, kind of very diversified, you know, they're very global companies. they're not subject to impacts. they're in the u.s., you know, they serve every single bank in the u.s., visa and mastercard does. so if you've got money flowing from small banks into large banks, they're largely unaffected by that. a very good diversified way, you want more risk, we're also big fans of block, as you know. and then more if you want to kind of pick off a buying opportunity from this last week's selloff, we'd highlight
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fiserv, one of these companies that service a lot of small and medium banks, and they've sold off a lot, but we're huge fans of their see ceo and what they've been doing, so we see this as a buying opportunity. charles: and for those "making money," folks, that would be square, fq and fisv. lisa, thank you very much, appreciate it -- sq. take a look at this, folks, my next guest is warning about this saying a staggering amount of unrealized losses at commercial bankings. this, by the way, before the collapse of silicon valley banks. i want to bring in macro mavens' founder stephanie pomboy. you've been ahead of the curve for a long time. i started the show by talking about just things that came up last year when people were pulling money out of banks. when the fdic themselves on december 1st pointed out despite
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unrealized losses, pointed out the vulnerability of assets like real estate. this stuff was out there. how come this industry seems to be caught so flat-footed? the san francisco fed had their head in the sand, and now even's running around like their hair's on fire. >> i mean,s the incredibly galling, isn't it, charles? all of this was so evident, and we've been watching it unfold for months, andall of a sudden people are shocked to see the incredible mismanagement9. i mean, what's really stunning to me, we had to know that the banks would end up sitting on massive unrealized losses because they were forced to load up on treasury and agency securities and then, of course, fed undertook the most rapid rate hikes this history. so we knew there would be losses there, but those losses could have remained unrealized and thereby innocuous had it not been for the simultaneous withering of their deposit base. and that was entirely avoidable.
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the banks could have avoided losing so many deposit had they just not been so greedy and raised deposit rates -- charles: i'm glad you brought that up. >> instead, they let people -- i mean, people like me, i closed my bank account and bought one-year bills, and i'm getting 5% and everybody else, apparently, did the same thing. but the banks sat there and watchedded us all take our money out and did nothing. and it makes you think about this moral hazard issue which we're now just reinforcing with these bailouts. charles: it is so amazing. i had a chart -- i don't think we have it for today -- that shows, you can go straight to treasury, treasury direct and buy with treasuries yourself. the spike in folks buying them themselves, i bought a bunch of monday through treasury correct, to your point. [laughter] it's so easy to do, and it's just a way of concern people want yield. banks want yield, their customers want yield. so it's amazing, the amount of greed -- ironically, the biggest
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banks out there are the ones who are still offering squat, and they're going to get all these new deposits. what about the politicization of it, stephanie? you know, apparently administration was trying to force jay powell to put a whole lot of political stuff in that statement that they came out with on sunday, blaming the prior administration. i don't see where it would have made a difference. they might have owned more treasury securities if they had those old rules in there. >> right. and, again, the issue wasn't even the treasuries, it was that the posit base was withering, and they were forced to realize the losses on those investments. since that was the issue and, clearly, the banks were irresponsible in terms of just sitting there and letting that happen. but, charles, what really troubles me the most about what we're watching now is this response, apparently, you know, we've heard it, i'm sure, from multiple sources that they had private sector the offers at that fdic auction last weekend for svb, and they decided
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instead to go with this bailout program. and now they really opened the hornets' nest because etch's wondering, like -- everyone's wondering, like, are my deposits going on the protected? and yellen's performance yesterday in front of congress did not inspire congress where -- can confidence where basically she said we're going to decide which banks we're going to bail out and which we aren't. so if you're lucky, we'll bail out your bank, but if you're not, you're s.o.l., and that only accelerates this go cuts the from the banking system. concern go cuts. they've screwed the up royally from start to finish. charles: by the way, when i listened to her comments it was, like, hey, if you live in arkansas, you ain't getting nothing. [laughter] >> right. charles: silicon valley, new york, we got your back -- >> if you're in a red state, you're screwed, yeah. charles: good luck. you been on top of this, thank you so much. appreciate it. >> thank you, charles. charles: coming up, our bud key
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scott martin is buying more than just taco bell these days. he is loading up on bank stocks. get your pen ready. you know, often times these are when you make the big, big money. but first, why one european regulator, really a report out scolding, scolding the other -- utter incompetence of our government's bailout and our government's approach to all of this. yeah, we been preaching, but the choir ain't listening. we've got dan fitzpatrick with his analysis, but how can you make some money in all of this? ♪ ♪ who's on it with jardiance? ♪ ♪ we're the ones getting it done. we're managing type 2 diabetes and heart risk.
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and you have a partner that always puts you first way. (no way!) start today at what causes a curve down there? who can treat this? stop typing, and start talking. it could be a medical condition called peyronie's disease, or pd. you're not alone, there is hope. find a specialized urologist who can diagnose and treat pd. visit today. charles: so the white house has been in spend mode ever since this began, and now they're taking the failure of svb and using it as fodder to, well, to blame rump. take a listen. >> do you believe silicon valley bank's failure have been averted had those dodd-frank rules not
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been rolled back during the trump administration? >> they did roll back some of those tough requirements. the president appointed regulators over the past two years to reverse the changes that we saw in the last administration. charles: yeah. i guarantee you she could not tell you what those tough requirements are. meanwhile, the financial i'ms reports that the european regulators are absolutely furious about the way our government has handled this collapse, one official actually describing their shock as total and utter incompetence. i want to bring in now stock market mentor dan fitzpatrick. dan, listen, the reason some of those requirements are rolled back and the reason 33 democrats in the house and 17 in the senate voted for it is that they were ooh the onerous on small banks because they couldn't make loans. that sort of stands to reason. >> right. charles: and what i'm worried about is that the focusing on spin, blaming the last guy, blaming regulators is going to
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miss the point and the sense of urgency in this emergency right now. how do you think they should be handling this? >> yeah. i mean, look, i'm not the biggest trump fan in the world, but a at some point you've got to stop blaming the last guy, and that was the point i was going to make. this was a bipartisan thing, so you can't look back and say, oh, they should have done this and that. this is a problem, it's a systemic problem, but it's a systemic problem in that the people that are running the show here -- powell, you know, yelles people. and so what they seem to be doing, at least in my view, they're kind of, like, playing scramble golf. like i play golf, i'm horrible. [laughter] you know, hit it off the tee, into the woods, then across the fairway into the lake. take a drop, finally into the sand and you never get it in the hole. so they're really doing this wrong way, in my view. but i don't even know what the right way is. charles: i mean, that's a concern i'm glad you're being honest about that.
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by the way, that's why i play miniature golf. [laughter] but to no -- to that point, you know, in that article many ft the, they went on to say these european regulators said, you know, america, they've sat through a decade of boring meetings with american regulators who said no bailouts, no bailout toes, no bailouts, and all of a sudden they go existence everything they preached. so now you've got -- against everything you preached. now you've got the discount window open. some people say it's not a big deal -- >> it's a huge keel. charles: yeah. the spike is above covid prices and the financial crisis. this is a spike. somebody's afraid, right? >> well, yeah. the interesting thing is if you really look at it, the fed's always talking about, you know, reducing liquidity, that's the whole thing about interest rates. because of this thing, the depositors are actually doing the fed's job for them. charles: right. >> we want our damn money, and
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now the fed's saying, oh, maybe we need to do this backstop. it used to be the called a bailout. the bank term funding program, btfp, you know what i think it stands for? buy the f-ing put. [laughter] charles: by the way, people were taking money out of the banks last year, hundreds of billions of collars. and that's ooh why -- of dollars. they were looking for yield. real quick, dan, i know you had a couple stock picks, give us your top idea amongst all this turmoil. >> my top idea, first of all, large cap ec. they don't need the money. arista networks and nvidia are awesome right here. nvidia, fundamentals not that great, arista networks, awesome. those are the ones i'd look at and don't trade 'em, own 'em. weekly charts, that's what you want. charles: by the way, full disclosure, my scrub scribers own -- subscribers own both of those. folks, we'll be right back. >> thanks, charles.
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golo is real, our customers are real, and our success stories are real. why not give it a try? charles: so take a look at this, folks. this is the weekly gauge of individual investor sentiment. it has plunged back to, extreme bearishness just after about a month ago peaking into bullishnesses. i want to bring in one of our favorite's, scott martin.
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you know, scott, it's interesting because a lot of folks on wall street use that sort of as a contrarian thing, but this has been spot on, right? sentiment goes down right before a market plunges, gone up right as markets have gone up. but overall, we know that these are the times or at least these swoons present opportunities. but how do you have the ice water in your veins to truly take advantage of it? >> a lot of transfusion work over the last few weeks, charles, with respect to getting ice water instead of blood, because that's what you need, unfortunately. [laughter] back to that blood comment, being human makes us scared. we see things like this, and the blood coarses through our veins and boils, and we get nervous when banks fail, when it seems like the fed and things you've been talking about during the program today -- which has been great, by the way -- when the fed and the treasury seems to be another step behind the curve. you need to think about getting ice water rt in your veins because we've seen things like this before with respect to brexit, end when we've seen the
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down the grade of the u.s. treasury debt, other bank worries. credit suisse and deutsche bank, boys and girls, ha decade, and y haven't failed. maybe they will this time, but the point is we've been here before, and i think this time the governments are a little bit better prepared than in '07-'08, and they're going to take necessary action to make sure things don't fly off the handle. charles: you've gone a step beyond ice water because now you're even saying buy banks. beyond the notion that maybe somehow the government will find a way to ring post or mitt gate losses, what do you like about them and which banks are standing out for you? >> again, just getting on the theory of just looking at where i think there's some value with respect to oversold conditions, i think some investors or some funds have been forced to sell some of these names, charles. you can bifurcate it. you can go a little bit more on the regional risky side which is your fifth thirds and your c
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coamericas, but a lot of the people on the balance -- paper on the balance sheet is aaa, and it's going to be okay especially if the government comes to a little bit of the rescue in the deposits get taken out. you have stuff that's down, like, 40% on the regional side, jp and goldman are down 20-30%, and i think it can scoop, say, 10, 15, 25% out of those names in the next few weeks. charles: charles schwab got in almost $17 billion in the last week. those are one of those names with a lot of this expowz your -- exposure to held to maturity, would you buy charles schwab here? >> already did, gonna buy some more. and i know we're running out of time, these banks are going to have lindsay lohan or britney spears' type bad weeks in their future, but those are times you've got to get in and get
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some of these stocks and be ready to cut 'em if they're making you nervous. charles: i don't know what you're talking about with the lindsay lohan bad week concern. >> i'm i trying to get her bad in the news, sorry about that. she's having a bad one, trust me. charles: scott, have a great weekend. folks, we'll be right back. [laughter] 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.
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charles: i was on outnumbered and we covered a lot of news stories, america and up on the foundation of our great nation. one of the biggest areas is waving the white flag with education. new york state is ready to lower academic standards. they are blaming the aftermath of covid 19 lockdowns. we run a doomed path before the pandemic set in. no lowering the bar where see is in a is educational suicide, and in 2020 one titled why other countries keep outperforming us in education and bringing us up to par, it can be our last chance to build the school systems we need. he stressed urgency then saying we don't have the worst -- we have the worst educated workforce in the industrial
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world. you hate to admit it but he is right. a lot of this has to do with scaring kids into believing there is no future. that comes in disbelief in american greatness and overwhelming fear, there's imminent doom for the planet, that message is so influential our kids are saying why bother? some good news according to the daily mail, the new superman movie will restore american way into the hero's model and highlight kansas, the middle american heritage. maybe there is hope after all. liz claman, over to you. liz: far be it from me to add more fear, we've got some breaking news as we kick off the final hour of a week, white knuckle ride that appears to be continuing. we are getting headlines from regional bank western alliance. in an effort to apparently
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