1 00:00:00,080 --> 00:00:03,320 Speaker 1: Welcome to today's edition of The Clay Travis and Buck 2 00:00:03,360 --> 00:00:07,320 Speaker 1: Sexton Show podcast. Welcome everybody to the Monday edition of 3 00:00:07,360 --> 00:00:11,000 Speaker 1: The Clay Travis and Buck Sexton Show. This is Buck. 4 00:00:11,080 --> 00:00:15,880 Speaker 1: I'm gonna be solo this week. Clay is on vacation Italy, 5 00:00:15,920 --> 00:00:19,200 Speaker 1: having a great time with the family, and boy, oh boy, 6 00:00:19,480 --> 00:00:23,000 Speaker 1: do we have a lot to talk about. The second 7 00:00:23,120 --> 00:00:26,400 Speaker 1: largest bank failure in US history occurred on Friday. We 8 00:00:26,480 --> 00:00:29,920 Speaker 1: got a lot of banks right now getting crushed in 9 00:00:30,040 --> 00:00:33,200 Speaker 1: terms of their stock price. The contagion has spread a bit. 10 00:00:33,440 --> 00:00:37,239 Speaker 1: Biden saying that your money will be there when you needed. 11 00:00:37,360 --> 00:00:41,159 Speaker 1: Emergency actions taken by the federal government here all to 12 00:00:41,479 --> 00:00:46,760 Speaker 1: prevent the domino effect of banking collapse that could lead 13 00:00:46,840 --> 00:00:49,080 Speaker 1: to not just a recession, but even a depression. We 14 00:00:49,159 --> 00:00:52,280 Speaker 1: are not out of the woods, and I think many 15 00:00:52,280 --> 00:00:55,720 Speaker 1: people are just beginning to understand what the implications of 16 00:00:55,760 --> 00:00:59,400 Speaker 1: this really are. A lot of fingerpointing going on, Oh, 17 00:00:59,520 --> 00:01:05,600 Speaker 1: it's Trump's fault because of deregulation. They say, well, that's interesting. 18 00:01:05,640 --> 00:01:08,800 Speaker 1: Biden's been president for two years. Why didn't he address 19 00:01:08,880 --> 00:01:13,679 Speaker 1: the regulations that Trump deregulated. A lot of people also 20 00:01:13,800 --> 00:01:19,720 Speaker 1: pointing to the wokeness and the obvious left wing Democrat 21 00:01:20,640 --> 00:01:24,200 Speaker 1: positioning of the Silicon Valley Bank and the people that 22 00:01:24,360 --> 00:01:28,399 Speaker 1: run it. And so there's quite a bit of schadenfreude 23 00:01:28,720 --> 00:01:32,839 Speaker 1: right now as they have blown up their balance sheet. 24 00:01:32,880 --> 00:01:38,080 Speaker 1: Their bank is well, it is caput, but it has 25 00:01:38,120 --> 00:01:40,880 Speaker 1: been given a second life now by the federal government. 26 00:01:40,920 --> 00:01:43,600 Speaker 1: We will discuss all of this. Spent much of the 27 00:01:43,640 --> 00:01:48,120 Speaker 1: weekend looking into everything happening here and want to talk 28 00:01:48,160 --> 00:01:53,880 Speaker 1: about where this is likely all going. Basically, are we 29 00:01:54,120 --> 00:02:02,200 Speaker 1: in the beginning of a massive financial crisis instead of 30 00:02:02,720 --> 00:02:06,120 Speaker 1: a contained, don't worry about it moment? Is this just 31 00:02:06,200 --> 00:02:08,200 Speaker 1: the beginning? Is this the first domino to fall? We'll 32 00:02:08,240 --> 00:02:14,040 Speaker 1: discuss this. You also have a massive immigrant hoarde storming 33 00:02:14,680 --> 00:02:18,280 Speaker 1: a checkpoint in al Paso, Texas, about a thousand of 34 00:02:18,320 --> 00:02:20,840 Speaker 1: them just making a run for it across the border 35 00:02:20,880 --> 00:02:24,040 Speaker 1: and a big push. People are starting to say, wait, 36 00:02:24,080 --> 00:02:27,480 Speaker 1: maybe they're not really asylum seekers. Maybe something else is 37 00:02:27,520 --> 00:02:30,520 Speaker 1: going on here. Yeah, you don't say. And over the 38 00:02:30,560 --> 00:02:37,840 Speaker 1: weekend a video went very viral of a Fifth Circuit judge, 39 00:02:37,919 --> 00:02:42,680 Speaker 1: Federal Judge Duncan, who was at Stanford University Law School, 40 00:02:43,200 --> 00:02:48,359 Speaker 1: and the Stanford students and a diversity dean, because that's 41 00:02:48,360 --> 00:02:50,240 Speaker 1: apparently a job that you have to have it all 42 00:02:50,240 --> 00:02:53,280 Speaker 1: these schools. In fact, many many people have that job 43 00:02:53,800 --> 00:02:58,360 Speaker 1: to be the enforcers of d EI, to be the 44 00:02:58,840 --> 00:03:06,600 Speaker 1: commissars of wokeness. She lectured him and effectively was part 45 00:03:06,639 --> 00:03:10,000 Speaker 1: of an ambush, a verbal ambush of this federal judge 46 00:03:10,000 --> 00:03:12,280 Speaker 1: at Stanford University Law School as well. We'll discuss that 47 00:03:12,320 --> 00:03:14,800 Speaker 1: coming up later on in the program. All right, we've 48 00:03:14,800 --> 00:03:17,840 Speaker 1: got to start with where we are with the banks plural. 49 00:03:18,240 --> 00:03:21,359 Speaker 1: You'll notice, because you've had a lot of banks that 50 00:03:22,080 --> 00:03:24,639 Speaker 1: are having big problems with their stock price right now. 51 00:03:24,960 --> 00:03:29,720 Speaker 1: You've had temporary trading halts in dozens of banks, some 52 00:03:29,760 --> 00:03:32,480 Speaker 1: of them had shares falling fifty sixty, even up to 53 00:03:32,560 --> 00:03:35,840 Speaker 1: seventy five percent when the markets opened at nine to 54 00:03:35,880 --> 00:03:40,280 Speaker 1: thirty am Eastern today. Now Joe Biden is out there 55 00:03:40,320 --> 00:03:46,040 Speaker 1: telling everybody that your money is safe, don't worry about it, 56 00:03:46,040 --> 00:03:48,040 Speaker 1: It's all going to be fine. This is clip three, 57 00:03:48,160 --> 00:03:53,400 Speaker 1: Joe Biden telling everybody the government is covering deposits. Play three. 58 00:03:53,520 --> 00:03:57,040 Speaker 1: All customers who had deposits in these banks can rest assured. 59 00:03:57,080 --> 00:04:00,800 Speaker 1: I'm gonna rest assured they'll be protected. They have access 60 00:04:00,800 --> 00:04:05,040 Speaker 1: to their money as of today. That includes small businesses 61 00:04:05,080 --> 00:04:08,400 Speaker 1: across the country that bank there and need to make payroll, 62 00:04:08,800 --> 00:04:12,400 Speaker 1: pay their bills, and stay open for business. No losses 63 00:04:12,440 --> 00:04:14,040 Speaker 1: will be and I'm like this is an important point. 64 00:04:14,160 --> 00:04:17,200 Speaker 1: No losses will be borne by the taxpayers. I mean 65 00:04:17,240 --> 00:04:21,080 Speaker 1: to repeat that, no losses will be borne by the taxpayers. Instead, 66 00:04:21,240 --> 00:04:24,239 Speaker 1: the money will come from the fees at banks, payings 67 00:04:24,240 --> 00:04:29,479 Speaker 1: of the deposit Insurance Fund. Okay, let's just start with 68 00:04:30,120 --> 00:04:35,240 Speaker 1: basic facts here. This is a bailout. They're saying it 69 00:04:35,360 --> 00:04:38,720 Speaker 1: is not a bailout, but this is a bailout. They're 70 00:04:38,760 --> 00:04:40,880 Speaker 1: just trying to structure it in a way that it 71 00:04:41,000 --> 00:04:47,200 Speaker 1: seems less like the downside. Here. First, Silicon Valley Bank 72 00:04:47,800 --> 00:04:51,560 Speaker 1: is being socialized. Right. The upside is all capitalism. We're geniuses, 73 00:04:51,600 --> 00:04:54,359 Speaker 1: we get to pay ourselves huge bonuses. The downside, the 74 00:04:54,400 --> 00:04:58,560 Speaker 1: losses are socialized. It's whoa, This is society's loss. And 75 00:04:58,640 --> 00:05:03,800 Speaker 1: it's interesting because Silicon Valley Bank had been a lobbying 76 00:05:03,880 --> 00:05:06,800 Speaker 1: for years that it was not necessary for it to 77 00:05:06,800 --> 00:05:12,200 Speaker 1: have the same stringent balance sheet requirements and risk management 78 00:05:12,200 --> 00:05:18,640 Speaker 1: requirements because it wasn't a systemically important bank SIB that 79 00:05:18,760 --> 00:05:20,400 Speaker 1: it was a bank that should be able to operate 80 00:05:20,440 --> 00:05:22,600 Speaker 1: a little more on the edge. Well now it has 81 00:05:22,640 --> 00:05:26,080 Speaker 1: fallen off the edge, and we are told that there 82 00:05:26,120 --> 00:05:29,520 Speaker 1: has to be the government swooping in. Janet Yellen says 83 00:05:29,640 --> 00:05:33,039 Speaker 1: there will be no bailout, but that's not really true. 84 00:05:33,040 --> 00:05:36,200 Speaker 1: Play clip one. Let me be clear that during the 85 00:05:36,279 --> 00:05:44,080 Speaker 1: financial crisis there were investors and owners of systemic large 86 00:05:44,120 --> 00:05:48,000 Speaker 1: banks that were built out and we're certainly not looking 87 00:05:48,400 --> 00:05:52,640 Speaker 1: and the reforms that have been put in place means 88 00:05:52,680 --> 00:05:56,600 Speaker 1: that we're not going to do that again. But they're 89 00:05:56,680 --> 00:06:00,280 Speaker 1: kind of doing something similar. Here's here's what's happen, and 90 00:06:00,480 --> 00:06:03,480 Speaker 1: it's complicated, and I know that there are there are 91 00:06:03,520 --> 00:06:05,440 Speaker 1: a lot of competing narratives, a lot of things you're 92 00:06:05,440 --> 00:06:08,360 Speaker 1: hearing out there. First of all, over the weekend, the 93 00:06:08,360 --> 00:06:12,320 Speaker 1: big debate was should you just let the bank fail 94 00:06:13,040 --> 00:06:16,039 Speaker 1: and should the depositors have to deal with the fact 95 00:06:16,040 --> 00:06:20,440 Speaker 1: that they now have effectively an IOU beyond the guaranteed 96 00:06:20,440 --> 00:06:24,560 Speaker 1: two hundred and fifty thousand dollars per account that the 97 00:06:24,600 --> 00:06:29,159 Speaker 1: FDIC ensures that they would have an IOU when the 98 00:06:29,200 --> 00:06:34,200 Speaker 1: bank assets would be sold or what they have been sold. 99 00:06:34,200 --> 00:06:37,680 Speaker 1: They were selling them at auction effectively, because once you 100 00:06:37,760 --> 00:06:41,800 Speaker 1: understand what really happened here, it becomes more clear how 101 00:06:42,640 --> 00:06:44,600 Speaker 1: how it is that this could happen first of all 102 00:06:44,600 --> 00:06:48,760 Speaker 1: at other banks, and also I think everyone understands the 103 00:06:48,920 --> 00:06:52,400 Speaker 1: politics that are at work, but effectively, you had the 104 00:06:52,600 --> 00:06:55,000 Speaker 1: IOUs that they would have instead of So if you 105 00:06:55,000 --> 00:06:58,080 Speaker 1: have a million dollars in the bank, right, seven hundred 106 00:06:58,080 --> 00:07:01,520 Speaker 1: and fifty thousand of that is wait, am I getting 107 00:07:01,520 --> 00:07:06,080 Speaker 1: that right? Yes? Seven hund fifty thousand of that is insured, 108 00:07:06,440 --> 00:07:07,920 Speaker 1: not insured, rather not in shurt. So you have two 109 00:07:07,960 --> 00:07:09,520 Speaker 1: hundred fifty thousand dollars that are in sure but the 110 00:07:09,600 --> 00:07:13,080 Speaker 1: FDIC and seven fifty k you're on your own. You'd 111 00:07:13,080 --> 00:07:17,239 Speaker 1: have some share that the bank's assets. A Silicon Valley 112 00:07:17,240 --> 00:07:20,559 Speaker 1: bank would supposedly pay back to you at some point. 113 00:07:20,600 --> 00:07:24,040 Speaker 1: You'd recoup the money at some point in time. And 114 00:07:24,400 --> 00:07:26,320 Speaker 1: that's not good enough because for a lot of small 115 00:07:26,360 --> 00:07:29,880 Speaker 1: businesses out there that we're banking with them, just parking 116 00:07:29,880 --> 00:07:33,200 Speaker 1: their money with them, they got to make payroll, so 117 00:07:33,440 --> 00:07:36,240 Speaker 1: that's not going to work. So they need the money now. 118 00:07:36,560 --> 00:07:39,200 Speaker 1: So what is the FED doing? The FED is taking 119 00:07:39,240 --> 00:07:44,360 Speaker 1: onto its balance sheet the treasuries, particularly that Silicon Valley 120 00:07:44,400 --> 00:07:47,760 Speaker 1: bank bought in order to make more yield on the 121 00:07:47,840 --> 00:07:50,960 Speaker 1: money that it was given, and they're buying it at 122 00:07:51,000 --> 00:07:53,000 Speaker 1: this point in time, taking onto the FED balance sheet. 123 00:07:53,040 --> 00:07:56,760 Speaker 1: So really the government is and if in effect here 124 00:07:56,800 --> 00:07:59,320 Speaker 1: stepping in in some capacity, and it is a bailout. 125 00:07:59,320 --> 00:08:01,119 Speaker 1: I mean, they're gonna all at all these different things. 126 00:08:01,160 --> 00:08:03,560 Speaker 1: But if it was left to its own devices, you 127 00:08:03,560 --> 00:08:05,320 Speaker 1: would have to have a liquidation of the bank and 128 00:08:05,560 --> 00:08:08,160 Speaker 1: all the rest, and that would be a problem for 129 00:08:08,200 --> 00:08:10,760 Speaker 1: a whole lot of people. Right now, with two hundred 130 00:08:10,760 --> 00:08:12,880 Speaker 1: plus billion dollars of assets, there's a lot of money 131 00:08:12,880 --> 00:08:16,640 Speaker 1: here that is at stake for people, right so now 132 00:08:16,840 --> 00:08:20,120 Speaker 1: you have the well why is it that we have 133 00:08:20,120 --> 00:08:22,320 Speaker 1: a two hundred and fifty thousand dollars People are asking 134 00:08:22,320 --> 00:08:24,280 Speaker 1: this question over the weekend. There's a lot of questions here, 135 00:08:24,280 --> 00:08:26,360 Speaker 1: by the way, and this is fascinating and I haven't 136 00:08:26,360 --> 00:08:28,240 Speaker 1: even gotten into is just going to get a whole 137 00:08:28,240 --> 00:08:31,960 Speaker 1: lot worse And even if it doesn't get catastrophically worse immediately, 138 00:08:32,480 --> 00:08:34,280 Speaker 1: what are banks going to do? In response to this, 139 00:08:34,480 --> 00:08:36,760 Speaker 1: everyone says, oh, they need tighter regulations. You know what 140 00:08:36,760 --> 00:08:40,400 Speaker 1: it's going to happen less lending. Well, gee, that means 141 00:08:40,480 --> 00:08:43,120 Speaker 1: less credit. What do we think less credit does to 142 00:08:43,160 --> 00:08:45,959 Speaker 1: the economy. That's the thing that's gonna be a fun one. 143 00:08:46,840 --> 00:08:51,480 Speaker 1: The original sin of all of this, the original sin 144 00:08:52,120 --> 00:08:57,680 Speaker 1: was creating artificially low interest rates, which effectively destroyed the 145 00:08:57,760 --> 00:09:01,880 Speaker 1: bond market through the machinations of the FED and the 146 00:09:01,880 --> 00:09:06,960 Speaker 1: federal government and the printing trillions of dollars. That's the 147 00:09:07,000 --> 00:09:09,200 Speaker 1: basis for all of this. That's how we even got 148 00:09:09,200 --> 00:09:11,400 Speaker 1: into the mess in the first place. Now, some people 149 00:09:11,400 --> 00:09:14,240 Speaker 1: are gonna say, puck the Zekoll Island in the beginning 150 00:09:14,280 --> 00:09:16,440 Speaker 1: of the Federal Reserve. Okay, but I mean the recent 151 00:09:17,160 --> 00:09:20,560 Speaker 1: the recent basis for all of this. The bill is 152 00:09:20,559 --> 00:09:23,120 Speaker 1: coming due for that. That's what you're seeing right now. 153 00:09:23,720 --> 00:09:27,079 Speaker 1: It turns out that if you manipulate the market as 154 00:09:27,080 --> 00:09:30,240 Speaker 1: a function of government policy, so you have artificially low 155 00:09:30,280 --> 00:09:33,840 Speaker 1: interest rates because you're trying to keep stimulating the economy 156 00:09:33,840 --> 00:09:35,840 Speaker 1: with more and more money, and you're printing, you're putting 157 00:09:35,840 --> 00:09:39,480 Speaker 1: more money into the economy, and people can't actually get 158 00:09:39,520 --> 00:09:42,400 Speaker 1: any yield for the money that they're putting into well 159 00:09:42,440 --> 00:09:46,480 Speaker 1: banks but also bonds because those interest rates are so low. 160 00:09:46,520 --> 00:09:53,680 Speaker 1: You create economic dislocations, You create a market that is 161 00:09:53,720 --> 00:09:59,280 Speaker 1: inefficient and that can have both bubbles and collapses, bubbles 162 00:09:59,280 --> 00:10:01,719 Speaker 1: and collapses. Doesn't that seem like something we should all 163 00:10:01,720 --> 00:10:05,400 Speaker 1: pay very close attention to right now? So over the 164 00:10:05,400 --> 00:10:07,880 Speaker 1: weekend there people are arguing, this is just a bunch 165 00:10:07,920 --> 00:10:11,319 Speaker 1: of Democrat fat cat donors who run Silicon Valley Bank. 166 00:10:11,679 --> 00:10:14,439 Speaker 1: They should bear all of the consequences on their own. 167 00:10:14,760 --> 00:10:17,640 Speaker 1: And if you're a depositor, too bad. Well. The problem 168 00:10:17,679 --> 00:10:20,240 Speaker 1: of that is what kind of valley banks? Not the 169 00:10:20,280 --> 00:10:23,040 Speaker 1: only one that it seems, got on the wrong side 170 00:10:23,360 --> 00:10:30,080 Speaker 1: of investing in treasuries, taking these long term investments that 171 00:10:30,280 --> 00:10:32,720 Speaker 1: allow them to get some yield there on the money 172 00:10:32,840 --> 00:10:36,560 Speaker 1: that is deposited with them. So they're on the wrong 173 00:10:36,640 --> 00:10:39,360 Speaker 1: side of this, like other banks are on the wrong 174 00:10:39,400 --> 00:10:43,440 Speaker 1: side of this. There's a very rapid run on the bank, 175 00:10:43,520 --> 00:10:45,719 Speaker 1: forty billion dollars in one day, people saying we want 176 00:10:45,720 --> 00:10:47,960 Speaker 1: our money out, we want our money out. If this 177 00:10:48,040 --> 00:10:52,360 Speaker 1: happens at other places, then you've got not just a 178 00:10:52,400 --> 00:10:56,080 Speaker 1: financial crisis in the making, you have a financial catastrophe 179 00:10:56,880 --> 00:11:00,640 Speaker 1: because you're gonna have people that aren't going to have 180 00:11:00,679 --> 00:11:04,960 Speaker 1: access to pay bills and pay staff and employees right now. 181 00:11:05,720 --> 00:11:08,559 Speaker 1: And maybe it gets unwound in the next six months 182 00:11:08,640 --> 00:11:10,360 Speaker 1: or they figure it out down the line. But what 183 00:11:10,440 --> 00:11:15,040 Speaker 1: happens in the meantime job loss is economic destruction, bad 184 00:11:15,120 --> 00:11:17,960 Speaker 1: things on the other side of this. There are people 185 00:11:17,960 --> 00:11:21,000 Speaker 1: who keep pointing out though, so the way this system 186 00:11:21,040 --> 00:11:25,320 Speaker 1: seems to work is we say that your accounts are 187 00:11:26,000 --> 00:11:31,480 Speaker 1: FDIC backed up to two hundred and fifty thousand dollars, 188 00:11:31,520 --> 00:11:36,600 Speaker 1: But really the banking system is such now that you're 189 00:11:36,800 --> 00:11:40,280 Speaker 1: unlimited in your as long as there's a politically potent 190 00:11:40,400 --> 00:11:43,480 Speaker 1: narrative behind it. You're unlimited in what the government will 191 00:11:43,520 --> 00:11:47,439 Speaker 1: backstop for you, right, So why even have the two 192 00:11:47,520 --> 00:11:51,800 Speaker 1: hundred and fifty thousand dollar limit for FDIC also kind 193 00:11:51,840 --> 00:11:55,240 Speaker 1: of an arbitrary number, isn't it. What's that really all about? 194 00:11:56,440 --> 00:11:57,920 Speaker 1: When you start to look at this, you see the 195 00:11:57,960 --> 00:12:02,760 Speaker 1: banking system a lot of it is based on, you know, 196 00:12:02,960 --> 00:12:05,760 Speaker 1: operating as a big black box. People don't really understand. 197 00:12:06,679 --> 00:12:09,120 Speaker 1: There are people who are arguing, well, you should lose 198 00:12:09,320 --> 00:12:12,800 Speaker 1: all of the money that you invested in Silicon Valley 199 00:12:12,800 --> 00:12:15,640 Speaker 1: Bank because they didn't do meaning the depositors didn't do 200 00:12:15,679 --> 00:12:19,199 Speaker 1: the due diligence to know what the bank is really doing. Okay, 201 00:12:20,000 --> 00:12:22,960 Speaker 1: does anybody do the due diligence before they invest in 202 00:12:23,000 --> 00:12:26,000 Speaker 1: a bank that is capitalized, an FDIC, back in, etc. 203 00:12:26,320 --> 00:12:29,839 Speaker 1: I mean, we got to really think about this. Does 204 00:12:29,880 --> 00:12:31,840 Speaker 1: anyone do that? Does anyone even know how to do that? 205 00:12:33,040 --> 00:12:34,840 Speaker 1: I mean, if you told me I had to do 206 00:12:34,920 --> 00:12:38,160 Speaker 1: due diligence on JP Morgan Chase or Bank of America 207 00:12:38,280 --> 00:12:40,920 Speaker 1: or you know what Covy or what is massive banks? 208 00:12:41,840 --> 00:12:45,280 Speaker 1: Where do you start? You kind of assume, and this 209 00:12:45,360 --> 00:12:47,240 Speaker 1: is the bottom line truth of it all. You kind 210 00:12:47,240 --> 00:12:50,319 Speaker 1: of assume that there are adults in charge and people 211 00:12:50,520 --> 00:12:52,319 Speaker 1: more or less know what's going on, and that will 212 00:12:52,360 --> 00:12:55,200 Speaker 1: all be okay. The whole system is based on trust. 213 00:12:57,320 --> 00:13:00,480 Speaker 1: That's the whole banking system. Really. Ultimately, it's trust. Otherwise 214 00:13:00,480 --> 00:13:02,920 Speaker 1: it's numbers on a computer screen. We're not even really 215 00:13:03,000 --> 00:13:05,560 Speaker 1: trading in hard currencies. You're not even really going to 216 00:13:05,600 --> 00:13:07,320 Speaker 1: the bank teller anymore. When was the last time even 217 00:13:07,360 --> 00:13:10,240 Speaker 1: went to a bank, not an ATM machine, a bank 218 00:13:11,000 --> 00:13:12,920 Speaker 1: and did anything else? You'll say, oh, well, a month 219 00:13:12,920 --> 00:13:14,920 Speaker 1: ago or six months ago, Okay, some people might say 220 00:13:15,120 --> 00:13:19,080 Speaker 1: that a few years. So how much due diligence can 221 00:13:19,080 --> 00:13:20,920 Speaker 1: you really do with all of this? So you know, 222 00:13:21,080 --> 00:13:25,480 Speaker 1: there's there's many layers of this. There's what is it 223 00:13:25,520 --> 00:13:30,000 Speaker 1: going to do to the economy? Big piece? Right? What 224 00:13:30,160 --> 00:13:33,280 Speaker 1: is the Biden administration doing about all of this? And 225 00:13:33,280 --> 00:13:35,560 Speaker 1: there are a bunch of incompetent buffoons. We know that 226 00:13:36,840 --> 00:13:40,480 Speaker 1: who is going to pay, who is getting bailed out? 227 00:13:41,000 --> 00:13:44,400 Speaker 1: How much worse can this get? These are all questions 228 00:13:44,400 --> 00:13:47,760 Speaker 1: that are still being answered. And one thing that keeps 229 00:13:48,000 --> 00:13:51,839 Speaker 1: a thought that keeps bouncing around my head on all 230 00:13:51,880 --> 00:13:56,840 Speaker 1: of this is if you were looking for the match 231 00:13:57,360 --> 00:14:02,560 Speaker 1: that could start the conflagration of a major recession, a 232 00:14:02,679 --> 00:14:08,120 Speaker 1: two thousand and eight style recession, a series of bank failures. 233 00:14:08,120 --> 00:14:10,080 Speaker 1: By the way, it's not just SVB that has failed. 234 00:14:11,640 --> 00:14:13,920 Speaker 1: There are three of them, I believe now that have 235 00:14:14,080 --> 00:14:17,280 Speaker 1: officially failed in the last few days, and a whole 236 00:14:17,280 --> 00:14:19,320 Speaker 1: lot of other banks under tremendous pressure right now in 237 00:14:19,400 --> 00:14:21,720 Speaker 1: terms of their stock price because people are worried about them. 238 00:14:23,200 --> 00:14:25,600 Speaker 1: Wouldn't this be if you were if you were war 239 00:14:25,760 --> 00:14:30,400 Speaker 1: gaming as an economist or somebody who just wants to 240 00:14:30,440 --> 00:14:32,200 Speaker 1: know where the country's going. If you're going to war game, 241 00:14:32,320 --> 00:14:38,840 Speaker 1: how things get really ugly economically really fast, and how 242 00:14:38,880 --> 00:14:44,880 Speaker 1: you could have massive spikes in unemployment and a huge 243 00:14:44,920 --> 00:14:47,800 Speaker 1: depression in real estate prices, and just just go down 244 00:14:47,840 --> 00:14:51,880 Speaker 1: the list all the things, all the reset mechanisms in 245 00:14:51,920 --> 00:14:55,360 Speaker 1: an economy that has been overheated and just full of bubbles. 246 00:14:56,320 --> 00:14:59,200 Speaker 1: If you were getting ready for that, or if you 247 00:14:59,280 --> 00:15:02,280 Speaker 1: thought that was coming, wouldn't a series of bank failures 248 00:15:02,680 --> 00:15:05,200 Speaker 1: be one of the most likely ways that it would begin. 249 00:15:06,200 --> 00:15:08,200 Speaker 1: That's a thought that keeps sponsor gram My head. I 250 00:15:08,240 --> 00:15:13,320 Speaker 1: hope it is not true. I hope that this is 251 00:15:13,440 --> 00:15:17,240 Speaker 1: relatively contained, and it may be, but no matter what, 252 00:15:17,320 --> 00:15:20,400 Speaker 1: it's a reminder of how fragile this whole system is. 253 00:15:21,520 --> 00:15:24,120 Speaker 1: Jim Kramer was on TV a month ago telling people, 254 00:15:24,160 --> 00:15:26,000 Speaker 1: you know the guy on TV. He's like, hey, buy this, 255 00:15:26,240 --> 00:15:28,360 Speaker 1: buy that. You know, Hong Kong, and he's like playing 256 00:15:28,400 --> 00:15:30,720 Speaker 1: the noises and the bull noise and everything else. He 257 00:15:30,840 --> 00:15:34,680 Speaker 1: was telling people to buy SVB a month ago. This 258 00:15:34,760 --> 00:15:37,600 Speaker 1: is a problem with reliance on experts and adults in 259 00:15:37,640 --> 00:15:40,920 Speaker 1: the room. People are greedy, people are fearful. People do 260 00:15:41,000 --> 00:15:45,520 Speaker 1: not want to be held accountable when they make mistakes. 261 00:15:46,320 --> 00:15:47,800 Speaker 1: We'll get into all this, by the way, if you 262 00:15:47,840 --> 00:15:49,880 Speaker 1: happen to work in the banking industry and you have 263 00:15:49,880 --> 00:15:52,720 Speaker 1: some particular insight on this one you've dealt with, SVB 264 00:15:52,840 --> 00:15:56,280 Speaker 1: would love to hear from you eight hundred two two 265 00:15:56,720 --> 00:15:59,040 Speaker 1: eight two on the phone lines. We'll get back to 266 00:15:59,080 --> 00:16:02,720 Speaker 1: it in a moment. The daylight savings change throw you 267 00:16:02,760 --> 00:16:05,600 Speaker 1: off this weekend. Well, if you're taking Chalk daily supplements, 268 00:16:05,880 --> 00:16:08,960 Speaker 1: low energies less of an issue. 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While that sounds extraordinary, 290 00:17:21,040 --> 00:17:25,240 Speaker 1: that is what happens in terms of the transition from 291 00:17:25,280 --> 00:17:28,439 Speaker 1: a temporary hold by the state and it's neatly turned 292 00:17:28,440 --> 00:17:31,600 Speaker 1: over to the FDIC. Our view was to make sure 293 00:17:31,680 --> 00:17:34,840 Speaker 1: that the entire banking community here in New York was stable, 294 00:17:35,400 --> 00:17:38,200 Speaker 1: that we can project calm, that this is a time 295 00:17:38,240 --> 00:17:42,280 Speaker 1: when we could manage a certain narrow situation, and to 296 00:17:42,280 --> 00:17:45,880 Speaker 1: make sure that that did not get any worse. Yeah, 297 00:17:45,960 --> 00:17:48,160 Speaker 1: that's right. The Governor of New York, Kathy Hokell, talking 298 00:17:48,160 --> 00:17:51,439 Speaker 1: about why a New York based bank there was also 299 00:17:51,640 --> 00:17:57,680 Speaker 1: taken over by the government. And Kathey Hokell is an imbecile, 300 00:17:57,720 --> 00:17:59,600 Speaker 1: So is there any reason to believe that she has 301 00:17:59,600 --> 00:18:02,160 Speaker 1: any what the heck should be done here? Just putting 302 00:18:02,200 --> 00:18:03,560 Speaker 1: that out there, We'll come back to more or the 303 00:18:03,560 --> 00:18:06,600 Speaker 1: banking crisis situation in just a second. A couple of 304 00:18:06,680 --> 00:18:08,600 Speaker 1: years ago, I switched my cell phone service from a 305 00:18:08,600 --> 00:18:12,040 Speaker 1: provider everybody knows and started relying on pure Talk instead. 306 00:18:12,240 --> 00:18:14,440 Speaker 1: I made the switch because it made sense. 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What's yours? 316 00:18:39,680 --> 00:18:42,080 Speaker 1: Pure Talk is so sure you're gonna love their service, 317 00:18:42,320 --> 00:18:44,320 Speaker 1: they're backing it up with a one hundred percent money 318 00:18:44,320 --> 00:18:47,120 Speaker 1: back guarantee. Caught your bill in a half with pure Talk. 319 00:18:47,200 --> 00:18:50,080 Speaker 1: Just dial pound two fifty, say Clay and Buck, say 320 00:18:50,119 --> 00:18:53,600 Speaker 1: fifty percent off your first month. That's pound two five zero, 321 00:18:53,800 --> 00:18:57,160 Speaker 1: say Clay and Buck. Pure Talk is simply smarter wireless 322 00:18:57,359 --> 00:19:00,639 Speaker 1: restriction supply c site for detail welcome back to Clay 323 00:19:00,680 --> 00:19:05,960 Speaker 1: and Buck, and we're talking about the banking crisis that 324 00:19:06,119 --> 00:19:10,560 Speaker 1: perhaps is averted. We shall see in the days ahead. 325 00:19:10,800 --> 00:19:14,560 Speaker 1: It definitely hit harder this morning when trading opened and 326 00:19:14,680 --> 00:19:19,480 Speaker 1: opened than I think certainly the Biden administration expected, or 327 00:19:20,119 --> 00:19:24,480 Speaker 1: was willing to let people think they expected, not quite 328 00:19:25,119 --> 00:19:28,760 Speaker 1: the same thing. They're trying to stop a full blown 329 00:19:29,400 --> 00:19:33,120 Speaker 1: financial crisis. One thing that I do believe is very 330 00:19:33,160 --> 00:19:38,760 Speaker 1: interesting about what happened here in Silicon Valley Bank is 331 00:19:38,800 --> 00:19:42,280 Speaker 1: that it had invested in right and this is where 332 00:19:42,280 --> 00:19:45,440 Speaker 1: we all go back to the banking one oh one stuff, 333 00:19:45,840 --> 00:19:49,560 Speaker 1: But it had invested in pretty secure stuff. And that's 334 00:19:49,600 --> 00:19:52,560 Speaker 1: actually what's that issue here. Treasury bonds. I think it 335 00:19:52,640 --> 00:19:55,840 Speaker 1: was ten year treasuries they were in, but because of 336 00:19:55,880 --> 00:19:59,239 Speaker 1: all the Fed interest rate swings, they got on the 337 00:19:59,240 --> 00:20:02,040 Speaker 1: wrong side. So their bonds, their ten year bonds were 338 00:20:02,040 --> 00:20:06,560 Speaker 1: worth less. They went below par because of the raise 339 00:20:06,640 --> 00:20:09,280 Speaker 1: and rates right, rates go up, bond value goes down. 340 00:20:09,640 --> 00:20:14,000 Speaker 1: So that was an issue that was a problem for them. 341 00:20:14,040 --> 00:20:18,560 Speaker 1: And then what happened is word got out when they 342 00:20:18,560 --> 00:20:21,080 Speaker 1: were trying to raise Silicon Valley Bank was trying to 343 00:20:21,200 --> 00:20:25,400 Speaker 1: raise two billion dollars of capital, so that when people 344 00:20:25,440 --> 00:20:27,639 Speaker 1: are going they're taking out you know, ten grand or 345 00:20:27,760 --> 00:20:29,840 Speaker 1: one hundred grand, or if they're running a business, you know, 346 00:20:29,920 --> 00:20:32,480 Speaker 1: payroll or maybe a million dollars for the month, whatever 347 00:20:32,520 --> 00:20:36,280 Speaker 1: it is, that the capital would be in the bank 348 00:20:36,800 --> 00:20:41,120 Speaker 1: to give to the people who were depositors and not 349 00:20:41,320 --> 00:20:46,240 Speaker 1: force the bank to sell the treasuries, the billions and 350 00:20:46,280 --> 00:20:48,919 Speaker 1: billions of dollars of treasuries that had invested in for 351 00:20:49,080 --> 00:20:52,480 Speaker 1: a loss right because because they had to take them, 352 00:20:52,520 --> 00:20:55,439 Speaker 1: if they had to take them out early instead of 353 00:20:55,480 --> 00:20:58,840 Speaker 1: getting a nice whatever it is, you know, four or 354 00:20:58,880 --> 00:21:02,600 Speaker 1: five percent, they were going to be selling them at 355 00:21:02,359 --> 00:21:05,879 Speaker 1: at at a loss, and so there wasn't the money 356 00:21:06,440 --> 00:21:08,439 Speaker 1: or there wasn't going to be the money for people 357 00:21:09,240 --> 00:21:12,159 Speaker 1: to take out once the word got out about the 358 00:21:12,200 --> 00:21:14,320 Speaker 1: two billion dollars. And this is another part of it 359 00:21:14,600 --> 00:21:20,520 Speaker 1: that's spread like wildfire. And Peter Teal, who I threw 360 00:21:20,600 --> 00:21:23,000 Speaker 1: a friend tried to reach out to to see if 361 00:21:23,000 --> 00:21:24,760 Speaker 1: he'd come on to talk to us about exactly all 362 00:21:24,760 --> 00:21:27,399 Speaker 1: this stuff. And if Peter's listening, please do call in. 363 00:21:27,440 --> 00:21:31,160 Speaker 1: We'd love to talk to you. He told his investment 364 00:21:31,200 --> 00:21:33,320 Speaker 1: fund last week, I think it was on Thursday night. 365 00:21:33,880 --> 00:21:37,199 Speaker 1: This bank is unsteady, on the brink of collapse. Take 366 00:21:37,200 --> 00:21:41,320 Speaker 1: out your money. Well, this word can spread very fast. 367 00:21:41,400 --> 00:21:43,680 Speaker 1: You've got social media, now you've got Twitter, You've got 368 00:21:43,680 --> 00:21:46,360 Speaker 1: people are able to figure out really quickly. And so 369 00:21:46,480 --> 00:21:48,560 Speaker 1: there were lines of people to take out money from 370 00:21:48,560 --> 00:21:53,520 Speaker 1: the bank right away on Friday. And now now you 371 00:21:53,600 --> 00:21:55,440 Speaker 1: got into the debate over the weekend, right so any 372 00:21:55,560 --> 00:21:58,879 Speaker 1: that's that's how this whole thing happened. You had a 373 00:21:59,000 --> 00:22:03,280 Speaker 1: flash run on Silicon Valley Bank as a result of 374 00:22:03,280 --> 00:22:07,199 Speaker 1: getting on the wrong side of its treasury investments and 375 00:22:07,400 --> 00:22:10,000 Speaker 1: the result of trying to raise two billion dollars to 376 00:22:10,080 --> 00:22:12,240 Speaker 1: keep enough cash flow in the bank that people could 377 00:22:13,000 --> 00:22:15,520 Speaker 1: take out the money that they had put into the bank. 378 00:22:17,480 --> 00:22:19,240 Speaker 1: Then all of a sudden, you have a run, right, 379 00:22:19,320 --> 00:22:21,120 Speaker 1: a bank run. As everyone shows up says I want 380 00:22:21,160 --> 00:22:22,679 Speaker 1: my money, the bank says, well, we don't have the 381 00:22:22,720 --> 00:22:24,879 Speaker 1: money to give all of you. We have money to 382 00:22:24,960 --> 00:22:28,680 Speaker 1: give you over a period of time at a rate 383 00:22:28,720 --> 00:22:31,000 Speaker 1: that we expect, but we don't actually have. And this 384 00:22:31,000 --> 00:22:34,280 Speaker 1: is where you're get into fractional fractional reserve banking and 385 00:22:34,800 --> 00:22:40,600 Speaker 1: some of the some of the problems of the fractures 386 00:22:40,680 --> 00:22:45,440 Speaker 1: in the fractional reserve approach. And so now this morning 387 00:22:45,480 --> 00:22:48,119 Speaker 1: we wake up and you've got you know, first Republic 388 00:22:48,160 --> 00:22:52,640 Speaker 1: Bank stock getting crushed. You've got a lot of these 389 00:22:52,680 --> 00:22:56,399 Speaker 1: different banks, regional banks that are under tremendous pressure in 390 00:22:56,480 --> 00:22:59,880 Speaker 1: terms of their stock price. So the government says, well, 391 00:23:00,240 --> 00:23:06,240 Speaker 1: the depositors are are all secure that there's a backstop. 392 00:23:06,280 --> 00:23:09,080 Speaker 1: They say it's coming from fees, But fees that the 393 00:23:09,080 --> 00:23:11,680 Speaker 1: banks pay into a fund will just turn into fees 394 00:23:11,760 --> 00:23:14,760 Speaker 1: that people investing in the or giving money to the 395 00:23:14,800 --> 00:23:17,400 Speaker 1: banks will end up paying. The costs will be borne 396 00:23:17,480 --> 00:23:20,119 Speaker 1: by the people. I mean, that's the bottom line of this, 397 00:23:20,600 --> 00:23:24,520 Speaker 1: whether it's a FED balance sheet trick or it's banks 398 00:23:24,600 --> 00:23:28,880 Speaker 1: paying into an FDIC fund to make sure that there's 399 00:23:28,960 --> 00:23:33,439 Speaker 1: an effectively insurance on the you know, additional insurance on 400 00:23:33,520 --> 00:23:36,879 Speaker 1: the insurance, if you will. Whatever whatever games are going 401 00:23:36,920 --> 00:23:38,359 Speaker 1: to play on the balance sheet, at the end of 402 00:23:38,400 --> 00:23:41,639 Speaker 1: the day, this will be an expense that is passed 403 00:23:41,640 --> 00:23:45,280 Speaker 1: well beyond Silicon Valley Bank and some of these other banks. 404 00:23:45,320 --> 00:23:48,960 Speaker 1: And that upsets people. That upsets main street folks. That 405 00:23:49,040 --> 00:23:50,960 Speaker 1: upsets people that are sitting here saying, okay, so I'm 406 00:23:50,960 --> 00:23:53,880 Speaker 1: having trouble paying my mortgage. I'm going into credit card 407 00:23:53,920 --> 00:23:58,800 Speaker 1: debt to buy groceries from my family. The people running 408 00:23:58,800 --> 00:24:02,159 Speaker 1: Silicon Valley Bank not only pay themselves. I'm talking now 409 00:24:02,200 --> 00:24:07,280 Speaker 1: about the executives, right, not only pay themselves the exorbitant 410 00:24:07,320 --> 00:24:11,840 Speaker 1: fees in particular for doing risky or stuff. Right, these 411 00:24:11,880 --> 00:24:14,000 Speaker 1: are there's the venture. They do a lot of business 412 00:24:14,000 --> 00:24:17,720 Speaker 1: with venture capitalists. There's a venture as in like adventure 413 00:24:18,119 --> 00:24:22,120 Speaker 1: component to the way that this bank was operating. So 414 00:24:22,320 --> 00:24:25,680 Speaker 1: the upside for their geniuses when they're making all this money, right, Oh, 415 00:24:25,680 --> 00:24:28,040 Speaker 1: we deserve our you know, our ten million dollar bonus 416 00:24:28,119 --> 00:24:31,160 Speaker 1: or whatever it is, right, I deserve and I think 417 00:24:31,160 --> 00:24:32,800 Speaker 1: it's a lot more than that for many of them. 418 00:24:32,800 --> 00:24:35,879 Speaker 1: But we deserve the money we're making because we're so smart. 419 00:24:36,560 --> 00:24:39,320 Speaker 1: And then when they're idiots and they destroyed their whole bank, it's, oh, 420 00:24:39,320 --> 00:24:41,200 Speaker 1: my gosh, you better bail us all out or else 421 00:24:41,240 --> 00:24:44,280 Speaker 1: all the banks are going to go under. Two We'll 422 00:24:44,320 --> 00:24:46,679 Speaker 1: hold on a second. There has to be accountability, and 423 00:24:46,720 --> 00:24:49,800 Speaker 1: I think that's where for people, and a lot of 424 00:24:49,840 --> 00:24:51,639 Speaker 1: folks are paying attention to this because you're talk in 425 00:24:51,720 --> 00:24:56,800 Speaker 1: regional banks, Domino's falling, depositors being left out in the cold. 426 00:24:57,040 --> 00:24:59,640 Speaker 1: Everyone's paying attention to this. This matters. We're talking about 427 00:24:59,640 --> 00:25:04,440 Speaker 1: someone's money, their life savings, their ability to pay the rent, 428 00:25:03,920 --> 00:25:09,520 Speaker 1: buy gas and groceries. People pay attention. Where's the accountability? 429 00:25:10,760 --> 00:25:13,880 Speaker 1: You know? Yeah? Is there ridiculous stuff out there about 430 00:25:14,560 --> 00:25:19,919 Speaker 1: how SVB was focused on diversity and inclusion stuff and 431 00:25:19,960 --> 00:25:22,720 Speaker 1: some of the people in risk management at the top 432 00:25:22,760 --> 00:25:26,000 Speaker 1: of the bank. Are you out of the woke academy 433 00:25:26,040 --> 00:25:30,119 Speaker 1: for lunatics? Yeah, of course that's there too, And is 434 00:25:30,160 --> 00:25:34,199 Speaker 1: that an indicator I think of why this diversity and 435 00:25:34,280 --> 00:25:40,159 Speaker 1: inclusion obsession at major institutions, it's gonna cause problems, whether 436 00:25:40,200 --> 00:25:44,040 Speaker 1: it's you know, for how we hire airline pilots or 437 00:25:44,080 --> 00:25:48,200 Speaker 1: who's doing air traffic control or who's in charge of 438 00:25:48,359 --> 00:25:51,160 Speaker 1: train safety. Just talk to the folks if he's Palestine 439 00:25:51,160 --> 00:25:55,240 Speaker 1: about that one. Or now the banking industry, when you 440 00:25:55,320 --> 00:25:58,840 Speaker 1: elevate for reasons other than basic competency in the field, 441 00:25:58,960 --> 00:26:03,080 Speaker 1: bad things happen. So that's a part of this. But 442 00:26:04,280 --> 00:26:07,120 Speaker 1: there's another another layer here is well, how do you 443 00:26:07,160 --> 00:26:11,960 Speaker 1: punish the bank, the banksters, if you will, the people 444 00:26:12,040 --> 00:26:14,240 Speaker 1: running it who are supposed to be preventing this kind 445 00:26:14,240 --> 00:26:16,840 Speaker 1: of a thing. How do they get fund we're selling 446 00:26:16,880 --> 00:26:19,119 Speaker 1: their stock. By the way, millions of dollars of stocks 447 00:26:19,119 --> 00:26:22,679 Speaker 1: sold by bank insiders at Silicon Valley Bank in just 448 00:26:22,720 --> 00:26:25,439 Speaker 1: the last thirty days. Oh gosh, I wonder if they 449 00:26:25,480 --> 00:26:30,080 Speaker 1: realized they had a problem. Yeah, how is that legal, 450 00:26:30,160 --> 00:26:33,400 Speaker 1: by the way, is it that's another question? But assuming 451 00:26:33,440 --> 00:26:37,080 Speaker 1: it is, how would that be legal? Think about that? Oh, yeah, no, 452 00:26:37,119 --> 00:26:39,440 Speaker 1: we'll take your money. We'll take your money. I run 453 00:26:39,480 --> 00:26:41,080 Speaker 1: the bank and I'm selling my shares in it. But 454 00:26:41,080 --> 00:26:45,480 Speaker 1: give us your money. It's fine. There's both a selfishness 455 00:26:45,520 --> 00:26:47,840 Speaker 1: and an arrogance there, because they must know at some 456 00:26:47,960 --> 00:26:52,160 Speaker 1: level that they will be bailed out. And they're right. 457 00:26:53,359 --> 00:26:55,440 Speaker 1: But the problem for the people who are saying, oh, 458 00:26:55,520 --> 00:26:58,920 Speaker 1: but you know the FDIC insurance, and you know whether 459 00:26:58,960 --> 00:27:02,959 Speaker 1: it's insurance for you know, per deposit or so if 460 00:27:02,960 --> 00:27:04,479 Speaker 1: it's a husband and wife in the account, it might 461 00:27:04,480 --> 00:27:06,920 Speaker 1: be more. Whatever it is, like, it doesn't covered. FDIC 462 00:27:07,119 --> 00:27:10,640 Speaker 1: obviously doesn't cover the range of the two hundred billion 463 00:27:10,720 --> 00:27:15,600 Speaker 1: dollars in assets. That much, we certainly know. And people 464 00:27:15,600 --> 00:27:17,480 Speaker 1: are saying, well, you know, too bad, you didn't do 465 00:27:17,520 --> 00:27:21,000 Speaker 1: your homework. Your depositor, figure it out. Yeah, you'll get 466 00:27:21,000 --> 00:27:24,960 Speaker 1: back something. Maybe it's sixty cents on the dollar. Okay, 467 00:27:26,119 --> 00:27:29,240 Speaker 1: but do people really when they give money to a bank, 468 00:27:29,680 --> 00:27:33,520 Speaker 1: do they think that their capital is being deployed in 469 00:27:34,320 --> 00:27:37,360 Speaker 1: a fashion that is so reckless that now there are 470 00:27:37,400 --> 00:27:39,320 Speaker 1: times in the past where that's happened, and we go 471 00:27:39,320 --> 00:27:41,200 Speaker 1: back the Great Depression, and we go back to the 472 00:27:41,280 --> 00:27:44,959 Speaker 1: various stock market booms and busts. But we have all 473 00:27:45,000 --> 00:27:47,880 Speaker 1: these regulations, right, we have government backstopping that's not supposed 474 00:27:47,920 --> 00:27:51,040 Speaker 1: to happen. And if you were to say, let the 475 00:27:51,080 --> 00:27:53,600 Speaker 1: regional bank this is work, it gets more complicated. I know, 476 00:27:53,680 --> 00:27:56,920 Speaker 1: the people that are shouting this is actually a difficult issue. 477 00:27:56,920 --> 00:27:59,359 Speaker 1: There's a lot of things happening here. It's not a 478 00:27:59,400 --> 00:28:01,720 Speaker 1: straightforward it's just you know, oh well there's this one issue. 479 00:28:01,720 --> 00:28:04,359 Speaker 1: There's a lot of issues because if you start letting 480 00:28:04,359 --> 00:28:06,760 Speaker 1: regional banks fail, not only do you probably set yourself 481 00:28:06,840 --> 00:28:09,000 Speaker 1: up for a depression, I mean a straight up depression. 482 00:28:09,600 --> 00:28:12,960 Speaker 1: You know, unemployment gets up today you ten fifteen percent 483 00:28:13,040 --> 00:28:14,479 Speaker 1: of the you know, the blink of an I mean, 484 00:28:14,600 --> 00:28:17,439 Speaker 1: if you start letting regional banks because you think you 485 00:28:17,480 --> 00:28:19,560 Speaker 1: think Silicon Valley Bank is the only one that got 486 00:28:19,560 --> 00:28:21,560 Speaker 1: on the wrong side of the interest rates and could 487 00:28:21,560 --> 00:28:24,560 Speaker 1: be subject to a run like this. Clearly not or 488 00:28:24,560 --> 00:28:26,800 Speaker 1: at least clearly the market perception is that that's not 489 00:28:26,840 --> 00:28:31,440 Speaker 1: the case. But what what do you do? Then? Okay, 490 00:28:31,480 --> 00:28:35,520 Speaker 1: well you then just pile all the money. Everyone's gonna 491 00:28:35,520 --> 00:28:38,719 Speaker 1: want to move all their money into the systemically important banks, 492 00:28:38,760 --> 00:28:41,680 Speaker 1: the two big two fail banks. You all know what 493 00:28:41,720 --> 00:28:45,520 Speaker 1: they are, you know, Bank of America and if you Morgan, etc. 494 00:28:45,760 --> 00:28:47,480 Speaker 1: You go, I'm doing the list of the biggest banks 495 00:28:47,480 --> 00:28:51,560 Speaker 1: in the country. So is that is that better? So 496 00:28:51,600 --> 00:28:54,920 Speaker 1: then we pull all of our money into these mega 497 00:28:54,920 --> 00:28:57,800 Speaker 1: banks that are engaged in all kinds of ESG and 498 00:28:57,840 --> 00:29:03,360 Speaker 1: other stuff. It's not exactly a solution either, is it. Well, 499 00:29:03,560 --> 00:29:04,880 Speaker 1: you know, it would have been a better idea all 500 00:29:04,920 --> 00:29:08,120 Speaker 1: along to allow the market to function as it functions 501 00:29:08,160 --> 00:29:12,160 Speaker 1: and for and not allow politics to determine artificially low 502 00:29:12,200 --> 00:29:17,480 Speaker 1: interest rates and trillions of dollars of printing so politicians 503 00:29:17,920 --> 00:29:20,200 Speaker 1: can make people think they are richer than they are 504 00:29:20,240 --> 00:29:22,760 Speaker 1: and the economy is better than it is. Q Joe 505 00:29:22,760 --> 00:29:24,720 Speaker 1: Biden and his speech this morning. By the way, that's 506 00:29:24,760 --> 00:29:28,200 Speaker 1: exactly what happened there. But switching gears for a minute, 507 00:29:28,200 --> 00:29:30,480 Speaker 1: you might be amazed to know that even though Roe v. 508 00:29:30,600 --> 00:29:33,480 Speaker 1: Wade was overturned last June, the number one killer among 509 00:29:33,520 --> 00:29:37,000 Speaker 1: infants in this country is still abortion. Abortion continues to 510 00:29:37,000 --> 00:29:39,000 Speaker 1: take the lives in nearly one million babies a year 511 00:29:39,040 --> 00:29:41,880 Speaker 1: just in this country alone. The team of people working 512 00:29:41,880 --> 00:29:45,600 Speaker 1: at the Preborn Network clinics nationwide are dedicated to reducing 513 00:29:45,640 --> 00:29:50,520 Speaker 1: that number. They accomplish that mission by providing expectant moms 514 00:29:50,840 --> 00:29:53,840 Speaker 1: with a free ultrasound that introduces them to their unborn child. 515 00:29:54,240 --> 00:29:56,920 Speaker 1: Once she hears that heartbeat, her maternal instinct kicks in, 516 00:29:56,960 --> 00:29:59,200 Speaker 1: and the majority of the time that mother will choose 517 00:29:59,240 --> 00:30:03,000 Speaker 1: life for her baby. Since founder Dan Steiner, president of Preborn, 518 00:30:03,400 --> 00:30:06,600 Speaker 1: started this life saving ministry sixteen years ago, over two 519 00:30:06,680 --> 00:30:09,560 Speaker 1: hundred thousand babies lives have been saved. For just one 520 00:30:09,640 --> 00:30:12,360 Speaker 1: hundred and forty dollars. You can introduce five moms to 521 00:30:12,400 --> 00:30:15,720 Speaker 1: their babies on ultrasound and help rescue five babies lives 522 00:30:15,720 --> 00:30:18,360 Speaker 1: in the process, and when you do, you'll receive five 523 00:30:18,440 --> 00:30:22,280 Speaker 1: stories and five ultrasound pictures of babies saved. Make a 524 00:30:22,320 --> 00:30:25,800 Speaker 1: tax deductible donation today to help pay for all these ultrasounds. 525 00:30:26,160 --> 00:30:29,000 Speaker 1: Using your cell phone dial pound two five zero and 526 00:30:29,120 --> 00:30:33,000 Speaker 1: say the keyword baby. That's pound two fifty say baby, 527 00:30:33,440 --> 00:30:37,080 Speaker 1: or visit their website Preborn dot com, slash buck that's 528 00:30:37,160 --> 00:30:41,520 Speaker 1: preborn dot com, slash b u c K sponsored by Preborn. 529 00:30:42,240 --> 00:30:45,880 Speaker 1: Download and use the new Clay and Buck app. Listen 530 00:30:45,920 --> 00:30:48,400 Speaker 1: to the program live, catch up on any part of 531 00:30:48,440 --> 00:30:51,200 Speaker 1: the show you might have missed. State current with what 532 00:30:51,320 --> 00:30:54,480 Speaker 1: Clay and Buck are saying on TV. Fine the Clay 533 00:30:54,520 --> 00:30:56,560 Speaker 1: and Buck app in your app store and make it 534 00:30:56,600 --> 00:30:59,200 Speaker 1: part of your day. Welcome back, Clay and Buck. This 535 00:30:59,360 --> 00:31:01,520 Speaker 1: is Buck n We're gonna be talking in the next 536 00:31:01,640 --> 00:31:06,240 Speaker 1: hour about this professor out at Stanford. I'm sorry, federal 537 00:31:06,320 --> 00:31:12,960 Speaker 1: judge out at Stanford and the diversity and inclusion dean is, 538 00:31:13,000 --> 00:31:15,080 Speaker 1: Like I've said, that is a job that is at 539 00:31:15,080 --> 00:31:18,200 Speaker 1: all the colleges. Now you need someone who walks around 540 00:31:18,280 --> 00:31:22,880 Speaker 1: telling everybody that they are racist unless they abide by 541 00:31:22,880 --> 00:31:26,880 Speaker 1: the agenda of the left. They're sexist unless they abide 542 00:31:26,880 --> 00:31:30,680 Speaker 1: by the agenda of the left. It was a real, 543 00:31:30,840 --> 00:31:33,640 Speaker 1: a real moment though, to see at remember this is 544 00:31:33,640 --> 00:31:37,760 Speaker 1: Stanford Law School. These aren't even you know, eighteen year 545 00:31:37,840 --> 00:31:41,360 Speaker 1: olds who just woke up from a hangover after a 546 00:31:41,440 --> 00:31:43,400 Speaker 1: late night at the Frat party. And these are people 547 00:31:43,440 --> 00:31:46,959 Speaker 1: that are supposedly training for careers in the law who 548 00:31:47,040 --> 00:31:50,840 Speaker 1: are at least twenty three some as old and was 549 00:31:51,160 --> 00:31:52,960 Speaker 1: a lot older, but you know, they think the average 550 00:31:52,960 --> 00:31:55,600 Speaker 1: age in law schools like twenty six, twenty five, twenty seven, 551 00:31:55,680 --> 00:31:58,560 Speaker 1: something like that. So they're older and they act like 552 00:31:59,440 --> 00:32:05,120 Speaker 1: total lunatic cry babies. I mean, it was appalling, appalling, 553 00:32:05,160 --> 00:32:07,360 Speaker 1: but it's important that you see it because this is 554 00:32:07,880 --> 00:32:10,600 Speaker 1: by those rankings that we're not supposed to talk about anymore. 555 00:32:10,920 --> 00:32:14,440 Speaker 1: Stanford is top three, some would even say number two 556 00:32:14,600 --> 00:32:16,760 Speaker 1: in terms of difficulty to get into law school in 557 00:32:16,760 --> 00:32:20,360 Speaker 1: the country. Yale is famously the most difficult by the 558 00:32:20,440 --> 00:32:22,720 Speaker 1: numbers to get into law school. And I can tell 559 00:32:22,760 --> 00:32:25,160 Speaker 1: you I have met a lot of woke morons who 560 00:32:25,240 --> 00:32:28,200 Speaker 1: graduated from Yale Law School. I've met them personally, I've 561 00:32:28,200 --> 00:32:30,760 Speaker 1: come across them. They are not very smart, they are 562 00:32:30,800 --> 00:32:33,640 Speaker 1: not impressive. They have terrible judgment, and you wonder how'd 563 00:32:33,680 --> 00:32:39,600 Speaker 1: you get in here? Oh right, okay, finding a lot 564 00:32:39,680 --> 00:32:45,400 Speaker 1: more of that these days. And that's the situation. That's 565 00:32:45,400 --> 00:32:49,200 Speaker 1: what's being shown by everybody or to everybody who saw 566 00:32:49,240 --> 00:32:51,720 Speaker 1: what happened over at Stanford University. So I thought it 567 00:32:51,800 --> 00:32:58,920 Speaker 1: was worth talking about. Also, Gretchen Whitmer. Gretchen Whitmer, among 568 00:32:58,960 --> 00:33:04,760 Speaker 1: the worst governors the COVID COVID seasoned seasons, has now 569 00:33:04,880 --> 00:33:06,680 Speaker 1: kind of admitted, Oh, yeah, you know, some of the 570 00:33:06,720 --> 00:33:09,040 Speaker 1: stuff we did, it was just kind of you know, arbitrary. 571 00:33:09,160 --> 00:33:12,640 Speaker 1: Oh you don't say, you don't say it just was 572 00:33:12,720 --> 00:33:15,920 Speaker 1: made up idiocy. Yeah, because some of the things she 573 00:33:15,960 --> 00:33:19,720 Speaker 1: did are so dumb that it is honestly impossible to defend. 574 00:33:19,760 --> 00:33:25,120 Speaker 1: And now that she's safely the governor again because unfortunately 575 00:33:25,320 --> 00:33:29,000 Speaker 1: a lot of single, college educated women in Michigan were 576 00:33:29,960 --> 00:33:32,160 Speaker 1: terrified they wouldn't be able to abort a baby for 577 00:33:32,160 --> 00:33:34,000 Speaker 1: all nine months of her pregnancy, so they had to 578 00:33:34,040 --> 00:33:39,800 Speaker 1: make sure they rallied for Whitmer, and honestly, the most incompetent, 579 00:33:39,840 --> 00:33:42,760 Speaker 1: low IQ governor I think you could you could find 580 00:33:42,800 --> 00:33:46,080 Speaker 1: in the entire United States Gretchen Whitmer the governor of Michigan, 581 00:33:46,760 --> 00:33:49,600 Speaker 1: and people voted for her, and they feel good about that. 582 00:33:50,080 --> 00:33:52,320 Speaker 1: I will tell you, though, there's on the on the 583 00:33:52,320 --> 00:33:54,200 Speaker 1: bright side, because I love looking for the bright side. 584 00:33:54,200 --> 00:33:57,840 Speaker 1: I'm a happy guy, happy warrior over here on the 585 00:33:57,840 --> 00:34:01,880 Speaker 1: bright side of things. So much of the Democrat ideological 586 00:34:01,960 --> 00:34:05,560 Speaker 1: edifice is crumbling right now. It's pieces here and there, 587 00:34:05,600 --> 00:34:09,680 Speaker 1: but you're seeing it. It's crumbling on issues of crime, 588 00:34:10,320 --> 00:34:16,319 Speaker 1: on COVID, on gender ideology stuff and transgender stuff for 589 00:34:16,440 --> 00:34:20,719 Speaker 1: kids and all this. They're losing. That doesn't mean they'll 590 00:34:20,760 --> 00:34:23,680 Speaker 1: admit it, doesn't mean they'll change their ways necessarily, but 591 00:34:23,719 --> 00:34:29,200 Speaker 1: they're losing. It's really it's really happening. So you know, 592 00:34:29,280 --> 00:34:34,080 Speaker 1: this is this is why I like to keep pushing 593 00:34:34,120 --> 00:34:36,960 Speaker 1: because I do think the momentum is on the side 594 00:34:37,000 --> 00:34:40,399 Speaker 1: of the scene at this point in time, and as 595 00:34:40,440 --> 00:34:43,319 Speaker 1: people see more of the results of the policies they 596 00:34:43,360 --> 00:34:46,960 Speaker 1: get from the Democrat left, they want to go in 597 00:34:47,000 --> 00:34:49,520 Speaker 1: another direction. I mean, here, I thought this is really interesting. 598 00:34:49,880 --> 00:34:54,280 Speaker 1: N Kevin O'Leary went on, this is from CNNA about 599 00:34:54,320 --> 00:34:56,680 Speaker 1: a ten days ago, but I wanted you to hear it. 600 00:34:57,280 --> 00:35:00,640 Speaker 1: He was talking about what's going on with the different 601 00:35:00,680 --> 00:35:04,120 Speaker 1: states like New York and California, and how he's a 602 00:35:04,160 --> 00:35:05,839 Speaker 1: guy who invested in a lot of companies. He's mister 603 00:35:05,960 --> 00:35:08,520 Speaker 1: Wonderful from Shark Tank. You no doubt I've seeing some 604 00:35:08,600 --> 00:35:10,680 Speaker 1: Shark Tank. It's always on at the gym when I'm 605 00:35:10,680 --> 00:35:13,200 Speaker 1: at the gym, which I think is interesting. It's like, really, anyway, 606 00:35:14,080 --> 00:35:18,000 Speaker 1: here is Kevin O'Leary saying that these Democrats states are 607 00:35:18,040 --> 00:35:21,920 Speaker 1: now uninvestable. Play clibate. Where did Amazon take their jobs? 608 00:35:22,000 --> 00:35:24,560 Speaker 1: They tuck him away from her. She threatened to sue 609 00:35:24,560 --> 00:35:27,080 Speaker 1: them if they created jobs. I mean, this is a reality. 610 00:35:27,120 --> 00:35:29,120 Speaker 1: There's a reality that there's a little more to it. 611 00:35:29,160 --> 00:35:31,839 Speaker 1: But let's not really that sorry, just signing the truth. 612 00:35:32,040 --> 00:35:33,800 Speaker 1: He's saying what a lot of people are saying, especially 613 00:35:33,840 --> 00:35:35,399 Speaker 1: what happened with that Amazon thing here in New York. 614 00:35:35,480 --> 00:35:39,040 Speaker 1: Just real quickly the conversation. But what was Elizabeth Warren's 615 00:35:39,040 --> 00:35:41,279 Speaker 1: response when you said that to her? Look, I have 616 00:35:41,360 --> 00:35:44,440 Speaker 1: a lot of respect for her, because it's okay to 617 00:35:44,520 --> 00:35:49,640 Speaker 1: have a debate about politics, but not policy. When you 618 00:35:49,760 --> 00:35:53,279 Speaker 1: have punitive policy, you're making a mistake. And I want 619 00:35:53,320 --> 00:35:55,440 Speaker 1: to just put up my hand and say I don't agree, 620 00:35:55,560 --> 00:35:58,920 Speaker 1: Senator with your policy. I respect you as a politician. 621 00:35:59,160 --> 00:36:02,000 Speaker 1: A very success for one, you know, she's very successful. 622 00:36:02,000 --> 00:36:04,080 Speaker 1: And that's the state where I grew my kids. I mean, 623 00:36:04,239 --> 00:36:07,399 Speaker 1: our family grew up in Boston, Massachusetts. We left there 624 00:36:07,400 --> 00:36:10,440 Speaker 1: to move to Florida like everybody else is because it's 625 00:36:10,480 --> 00:36:12,440 Speaker 1: such a tough place to you know, this is a 626 00:36:12,480 --> 00:36:15,520 Speaker 1: tough message. People really are critical about this, but somebody 627 00:36:15,560 --> 00:36:18,680 Speaker 1: has to call it out because this is a competition 628 00:36:18,680 --> 00:36:21,440 Speaker 1: of states now, and we don't put money there anymore. 629 00:36:21,520 --> 00:36:24,320 Speaker 1: We put it in other places and jobs are created elsewhere. 630 00:36:24,520 --> 00:36:27,360 Speaker 1: Over time, this is going to diminish New Jersey, diminish 631 00:36:27,440 --> 00:36:32,000 Speaker 1: New York, diminish Massachusetts, and California out of business, out 632 00:36:32,000 --> 00:36:35,000 Speaker 1: of business at Morte, no business there. You can't do 633 00:36:35,040 --> 00:36:37,040 Speaker 1: business there. I don't know what that's. The place is 634 00:36:37,080 --> 00:36:39,800 Speaker 1: going to turn into maybe a tourist zone, but no business. 635 00:36:40,080 --> 00:36:42,440 Speaker 1: Match In San Francisco, you can't even walk at night 636 00:36:42,480 --> 00:36:47,720 Speaker 1: out and street. A competition of states, You'll notice something. 637 00:36:48,480 --> 00:36:52,200 Speaker 1: The states that are losing the most, the bluest. The 638 00:36:52,280 --> 00:36:56,080 Speaker 1: states that are gaining the most, the reddest. We are winning, 639 00:36:56,160 --> 00:36:57,319 Speaker 1: my friends, don't forget that.