Firmly above 1. 7 . Andrew thank you. We have a crazy big show for you this morning lets just tell you about the lineup among the highlights, we have author ben measurer. Former of ceo of airlines. First Television Interview with the ceo wework in the midst of all of this big questions. Ceo of General Mills and then someone who never holds his tong, venture capitalist and investor coming up in the next three hours. We are going to do it. History in the making today. Central bank will begin buying etfs their Corporate Bond etfs but the First Time Ever. The idea is to be able to direct the money into the credit markets faster than by buying bonds. Reporting that the purchase about 250 billion of the feds 750 billion program inching closer and closer to stock etfs. Probably not a health of a buy on this buy owe tech etf we cant make that leap, right guys when you read this, werent you like, etfs it is not that favre a jump once i read it, instead of this bond, that bond, lets do it i understand it does cause people to take it to the eventual conclusion of stocks some day. I understand why they are going this they have to firm up their markets and make sure private investors are willing to lend to these companies to keep things afloat the further out they go, the easier the transition becomes to say look, their bailing out wall street not main street. Some of the businesses qualified for a few months as long as they were willing to keep 75 of their people employed. Other things like making stores and restaurants safer. In the meantime, we are going to buy stocks and bonds i understand why it is important for those to stay open but it is a bigger lightening rod and one that will come up again where we get back to the same course we heard in 2008, 2009. Weve had guests closely in line with cnbc they fully told our viewers that the fed buys s ps when the stock market goes down too far i dont think they have. I dont really believe i dont think they have either do you think the problem is that the fed is too much of a blunt instrument the problem is that technically. I dont think. They cant send out checks, 1,200 a pop to every man, woman and child. Thats sort of the problem to some degree. The weapon that needs to be used however, it is difficult to understand and easy to manipulate if you are a politician who says you are leaving us behind. Some politicians may not even understand how important the fed is, what happens if these markets close down i would argue if jay powell had his way or ben bernanke had his way, they would have tools they print the money the treasury sends out do they need more . They need to make sure the markets stay open. They dont have enough money to keep every business afloat they need to make sure investors freely comfortable otherwise the place doesnt operate. They dont want to send the money direct what does mmt really lead to . The conclusion of being able to print as much as you want without any upper limit. Thats what they are doing. The point is to have a tool you never use. Andrew, who do you think theyd want to send the money direct to i think if ben bernanke could have, he would have preferred to find a direct route to individuals and homeowners and people who actually needed the money because the fed is a blunt industry. Who would you send it to now, Everybody Needs it would you send it to cruise ships, hotels, Small Businesses . No, no. You look through the tax record. Individual tax records from last year, youd say whatever you made last year, assuming under a certain number, pick your number, 60,000, 80,000 and well effectively send you the money like you were on payroll currently as if you were i dont know how that makes sense. You are talking about going to a restaurant that is closed down can you send me more money, it doesnt mean im going to spend it no, no. Youd means test it. A, means test it on the number and whether you have a job yes, if you worked at a restaurant last year and made whatever number it is and you 0 obviously cant work, theyd send you that money. That is taking place all across europe when people look at the numbers in germany right now or any of these nordic countries saying what is going on and why does the economy seem to be okay . Everybody is still getting paid. The reason why there is not civil unrest and people are not angry is because they are still getting paid the money andrew, if everybody is getting paid, who is going to go to work and make sure the supply chain stays open and the rest of them will stay open. I dont think you want to be in the position of picking winners or losers. You only get the money in these of these european countries, you only get paid if taken off the payroll. It is essentially unemployment so you get to stay home and get paid but im working on the front line thats a better outcome than the outcome where in the next 10 years, well have a major debate of who is the beneficialry you know who the beneficiary will be and it is not the guy on the front line at all. So if you are a health care worker, work in a shop, amazon workers, you are out of lock you have to keep going to work while the rest of us stay home that is a worse situation. That is the situation right this second. If you work at amazon or on the front line, you are working. But they are not getting paid by the government to do that correct if they are still on the payroll, thats how you would get paid it is a better outcome than the folks at a bol oh, black stone and effectively every american getting bailed out when they arent you are going to have the fed saying they are bailing out the rich once again. Less government money has to go to work. Thats your narrative now for 2008, sorkin you dont think you need to save the Financial System everybody was doing pretty well 10 years ago with the argument about 2008. Give me one second, ill give it to you 2008, you know ive been he have spoken against that. Before, we were trying to save wall street to protect main street thats what 2008 was about it is the same thing this time around. How is it different . This time around, we should be trying to save main street to save wall street if this gets to wall street, the whole thing gets undone. This started on wall street we have an opportunity to do it on the main street side. How exactly how i just said the fed doesnt have the tool, which is how the discussion began. If they have the tool, rather than funnel everything through wall street, you find a way to do it through min stain street zwlee did that with the ppp. Thats your idea to continue to do that and coach Small Businesses afloat. Or go straight into peoples homes and spend how much two months, three months i said this could cost us 10 trillion im in the middle box now ive asked the director to do this so im going to have to mediate. You are the peace keeper. You two, i dont know what it is anyway andrew, we got to say im not sure i understand you want to let the airlines go bankrupt. Giving the money to workers, you can let ubi and this will get you to your u toepia faster. You are in the middle thats not true at all im in the middle what im not sure about just so i understand you are advocating, you think what the fed is doing is accurate and good . Yes i think what the fed has been doing to step in and prop up these markets has been right we would have had much bigger problems if they didnt step in two months ago if you are of the idea that jay powell wishes he could give every person a check, i think you are wrong. I think if he had other tools he would take them and prefer them never a waiste of crisis. We may be able to get to socialism before the next election we wont need that. Not every single person. He would prefer a more efficient method of getting the money to people as opposed to supporting the private equity firms and big investors. You think he would get every needy person that doesnt have 80,000 a check. Thats what you put that out too . He would find a way to get money to different individuals well debate this. A longer one we have to keep moving i believe when people say the left wants to use the crisis to migrate us to socialism. You just made that case. You really do want to do that. I dont understand what you are talking about. We are running the largest Corporate Welfare Program in america right now. Rather than are you talking the ppp who do people work for . The Small Business and large business, Largest Program in america. People work for corporations. They dont work for the government the government doesnt have any money. Unless they print it, which they are doing they are printing the money anyway what are we talking about . This is circular. Thats why it happened if everybody worked for the government, thats cuba, venezuela. Im worried, you fan the fire of this sort of political firestorm. Thats cuba we have a lot more on the other side of this explaining why is this happening . Question should be explaining why is this happening. Everywhere else, theyll be beating them up for helping the wealthy people that was not the intention or the plan and i dont think thats the end result and i dont think it is fair i dont think it is the intention at all but given the limited tools, they are using them the best they can im saying there is a more efficient way to do it more to talk about dr. Fauci expected to deliver a warning to congress about reopening toolerly well get a reaction from dr. Scott gottlieb shares higher in hotels. The company is laying off 1,300 gloenal glo globally and cutting pay across the board as a massive change set to go into effect june 1 we are back after this these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back dr. Fauci expected to deliver a dire warning in an email to the New York Times, he said his main message will be in the danger involved in reopening the country too early. The plan involves three phases such as a downward trajectory in positive cases and contact tracing. He said if we skip over the guidelines, we risk the danger of multiple outbreaks throughout the country. This does not mean the result of opening back to normal one of the main concerns for businesses, potential liability, the Judiciary Committee will hold a hearing on expanding tests for businesses testing is key to all of this. The president gave an update on monday the administration plans to distribute 11 million to bolster Testing Capacity bringing in dr. Scott gottlieb, former fda commissioner and sits on the board of illumina and pfizer is dr. Fauci right when he says we are opening too soon . Look, we are going to see cases go up you. If you look at al alabamaabama,h dakota and texas, weve seen cases go up. I think we are resuming activity off a high baseline of spread im not surprised that tony will be making that statement his testimony more than likely went through the white house he wouldnt be giving that if he didnt clear it. The bottom line against the back drop the other piece is that most assume by may wed see a decline of new cases we didnt think going into may, wed be at a plateau. We are in a tough spot keeping the government shut down into june or may will be difficult for the nation there is a lot of hardship on the other side of this we are opening amid more spread than we presumed walk us through the time line there are governors that havent opened yesterday looking at this almost grand staitbystate skpirn skpirnment. Looking at the time line, you dont see a massive spike, is that the will that open them to say, okay if there is going to be a reinfection, now long the wouhite house saying two weeks. We wanted to see the decline in cases and wait a couple of weeks. You want to know we are on the downward trajectory. We are not on that the only part of the country that has experienced that on a whole is Pacific Northwest and the northeast. States hard hit like new york, new jersey and connecticut are setting a time line to reopen later this month they are seeing those declines southeast, southwest, the sun belt, you are not seeing that. Maybe we are seeing some declining type of cases like florida. Certainly not a sustained decline. They are reopening against a back drop of a lot of spread you are going to see cases go up they are going to look at hospitalizations, not necessarily new cases. We are testing a lot more. The hospitalization rate is going down just looking at new cases doesnt tell you if you are testing more you want to look at hospitalizations that is a more objective test. The only challenge of looking at hospitalizations is it is a lagging indicator. There is a delay in time to hospitalization. They are only going to be looking backward a little bit when being looing at hospitalizations i know the fda put out guidance that lays out clinical and none clinical testing. I dont understand it. Can you explain it a little. Fda put out guidance but they got granular typically a guidance document like this would be more difficult general. Saying a difference between mild to severe disease. They layout clear clinical criteria this is a draft guidance, so people will present comments to it it will help Drug Developers they layout the followup. They talk about 28 days and difference between mild to severe and talking about the oxygen saturation. The specificity is important not something the fda usually does but will be helpful for people trying to develop covid therapeutics the other question we have for you is testing weve talked all sorts of different testing plans and programs, to some of those check points, we are supposed to be doing testing and tracing. It doesnt seem that tracing is a key point what about testing do you think literally there will be testing at certain sites daily, week or more we have to hire people to do the Contract Tracing work to ask people to selfisolate that will be slower. The testing is ramping there will be technological inflection points as new systems come on to the market. We saw one machine authorized over the weekend that will probably bring 1. 5 to 2 million tests a week into the market well see other inflection points where they come on to the market and increase capacity of testing. We are getting there in terms of your question, when are we going to have capacity to do broad row teen testing, thats probably a more broad event. Well have, three million, four million. We are at about 2 million tests a week we are not quite where we want to be. We are reopening against the back drop of not having that testing. We dont have 3 million or 4 million. We have two. Always great to see you cnbc gathering Health Care Leaders at the center of the fight of covid19. Request an invitation at cnbc events. Com healthy returns watch coverage all day here on cnbc coming up, new data on what investors have been doing with rear tirement accounts futures right now are positive oil is up almost 5 on the saudi news we look at some images of the pandemics impact yesterday from across america coming right back. Derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Long term investors are taking even a closer look at their retirement accounts. After a month or two ago, joining we now good morning. After the initial market turmoil, people seem to be doing exactly what Financial Advisors say they should be with longterm investments. That is setting a strategy and staying the course in april, daily trading in 401 ks was about three times less than it had been in march. Tracking about 2,000,401 k accounts only three above normal trading days in april compared to 18 in march. Mainly to bond funds and money market funds but outflows were from target day funds. Target day funds accounted for half of new contributions. Participants are likely to stay the course to the largest 401 k provider, fidelity tell me how this works. The cars act, you have more flexibility on what you can do with your 401 k. Are more people taking money out now that thats easier to do or available to them . Fidelity looked at the first two weeks of april and found 82 were stopping or increasing contributions or what third in march. If you could take out a loan up to 100,000 or hardship distribution of up to 100,000 if you have coronavirusrelated issues it found actually the number of people taking distributions was less than 1 a very small number. That number could rise as more Companies Adopt these and as more people realize that is the only place they can go for this money. The idea that this administration will allow people to take money now if they agree to take less seshl security later. That seems nuts to me. A lot of people were alsoer already concerned about their Social Security benefits going to the easy access of their credit card or Retirement Fund a lot of people will go where it is fun to try to find that money. Thank you g. To see you when we come back, well talk to the authority ben mezrich to talk about the changes from the virus to the way we are living. First, a look at yesterdays winners and losers these days, its anything but business as usual. Thats why working together is more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. Pure protein. The best combination to help you stay fit. Welcome back the socalled stayathome stocks have spiked the nasdaq is just off its alltime high. All after people started sheltering in place because of the pandemic lets go to best selling author ben mezrich. We want to thank you for joining us thank you for having me you have been behind so many of the trends