Transcripts For FBC Making Money With Charles Payne 20240713

It is a very special session. We have you covered. All that, so much more on making money. Charles so the unknown Economic Impact continues of the coronavirus continues to weigh on the market. Again this as investors attempt to factor in how impactful the Federal Reserves emergency decision to cut rates by 50 basis points this morning will actually be. As the 10year yield fallen below 1 for first time ever. President trump addresses Central Bank Decision to lower rates a little while ago. Take a listen. We have to be competitive with other countries. When were paying two points more than germany, were paying more than other countries, we should pay less than everybody else. Of the fed rate is too high. Simple. It is too high. It puts us at competitive disadvantage, especially exporting our product to other countries. The other countries love that i dont like it at all. I would like to see our fed lead instead of being led. Charles joining me bellpointe chief Market Strategist david nelson, Divine Capital ceo, dani hughes. On the fed rate cut you wrote that it was not necessarily a surprise. Certainly markets have been factoring it in. Is that one reason there has been this response to it . Keep this in mind, when Jerome Powell began to speak, the dow was up 45 points. When he finished we were off 300. We havent stopped going down ever since . David, can you hear me. I thought it was for dani. Sorry, charles. I dont think it was a surprise. It was clearly priced in maybe to a good point, coming into this week, about i think 64 of economists were looking for at least 50 basis points, the fact they took a week early, took it as opportunity to take risk off the table, given how far we went yesterday. Charles dani hughes, the fragility of markets, power of of algoss Federal Reserve turning the world upside down. Is this awakening or a piv any of epiphany of some sort . Fed cant control markets. Just when the fed lowered rates the market didnt care anymore. I think that is a lot to do with the fact that were seeing this spread is going to have an impact on the entire globe. And as trump has said, look at global rates. Youve got switzerland in negative 1 . November. 8 of a percent in germany. Japan has negative rates. Even spain and italy are below half a percentage point. So, you have got to understand, eventually american rates are going to be down here. Weve seen yield on 10year go below 1 . It never happened in history. Charles on that point, dani you feel trump has a point, if inevitable we get to zero, perhaps even lower, maybe Jerome Powell should have talked more today about the additional tools he has . He was kind of coy on that question. He says, yeah, were working with it. Were trying to figure some things out. It felt like during most moments of his press conference when the selling started to Gain Momentum . Yeah, i think that is true. There is a lot of uncertainty. I dont think the fed will lead in that regard. The markets will do what the markets will do. The fed is best responding to that, instead of trying to get out ahead of it. Because this is what happens. Unfortunately were going to see a lot more carnage in the market i believe. I think it is an opportunity frankly for investors to see where they can find some nice sales over next couple weeks but this is not over. The fed isnt going to stop it by just saying okay, well wake rates to negative 2 . That will not stop the carnage. Charles, let me break in. I dont think that is what the fed is trying to do. Theyre trying to keep financial conditions from getting tighter. They ultimately it is not Monetary Policy will not stop the problem. Ultimately health care professionals. This will have to run its course. I did some history and wept back looked at 2009. 61 million americans got h1n1 virus. 12,000 died. We got beyond that. Charles david, the fed took action today. He said there could be more coordinated action between himself and other federal bankers around the world. He cant step the coronavirus thats a given but something about the animal spirits of our money that has been the main idea for prosperity around a lot is cued up or connected to the stock market. That is where the fed to me is trying to play a role here. Theyre trying to play a role. Coming into this we were positioned for growth. This is not demand driven slowdown like typical recession this is a supply shock. More like a 9 11 event. Meteor hits the earth or hurricane katrina. Business stops and markets, you just said it before, the markets are going through price discovery. Were trying to find out what the multiple we put on lowered earnings . It is lower than what charles we know the p but we dont know the e right now. We dont know the e. Charles to that point you say we have a lot more to go to the downside. Almost everyone suggesting at very least we tested lows of friday, that intraday low. For the dow that would be 24,681. For the s p, 28055. If those dont hold where do we go . It is a good question. Im not a technical person but i do think we havent even seen the market puke it up so to speak. That is what we say in technical terms as a marketmaker. We have not seen that kind of hurt yet. I think a lot of people have been cued to actually take advantage of markets like this. Dont forget, we have a whole generation of people that did not go through 2008, 2009. So theyre looking at this, oh, this is a sale. A lot of the online Brokerage Firms opened up a Record Number of accounts with people putting in deposits and starting to buy companies they felt were on sale. I think well see that until we dont. That is what im talking about. That point has not happened yet. Charles the idea from wall street that main street must give up before the market can turn around. Goes back to kennedy, joe kennedy. Thanks very much. You guys helped tremendously. Meanwhile folks, the Federal Reserve obviously taking action. Jerome powell making a statement after todays emergency rate cut in response to the Economic Impact caused by the coronavirus. Take a listen. We have come to the view now it is time for us to act in support of the economy. Once you reach that decision we decided to go ahead. We saw a risk to the outlook of the economy and chose to act. Charles President Trump is pushing for the fed to do more. How far can the central bank go . Will they go . Several former fed officials in fact said the fed needs to expand their tool box. So what might that look like . I want to bring in former dallas fed advisor, Danielle Dimartino both. Danielle, i know youre not a big fan of the fedex expanding their tool box. Ben bernanke said as much. I spent a lot of time researching. Went back to the operation twist, 1961, named after the old Chubby Checker dancer craze. There is no way they can use Interest Rate cuts alone to combat major catastrophes like the one theyre facing now. No, charles, youre absolutely right. Theyre not going to be able to. We already got for the march 18th meeting coming up in a matter of days, we already have the market beginning to price in another half percentage point rate cut. After that, they just got one more to go, if were going in 50 basis. Increments. If you remember, i know you were there, 2018, 2007. Once the emergency rate moves come in, the fed moves quickly to the zero bound, which comes to your question, what next . Brainard on the fed has done a very good job mapping out what the next steps will be. Will fed move from treasury bills into buying longer term treasury coupons, past 12 months ever maturity. I think that is to be the case. There is talk of capping the 10 rate yield. That is not such a hard task when i think it hit 0. 96 . Charles, im happy youre in washington because that is a very Historic Place to be because right now were witnessing history with the 10year yield. Charles what about going so far to actually buying equities, sort of bank of japan, etfs, things like that . People are wondering, since the fed appears to have unlimited amount of money it can print certainly coming to saving wall street, why are there not any boundaries anymore . There are legal boundaries and deal with the gentlemen and jent women in congress for the fed to go beyond mortgagebacked securities. If the fed takes one more step out on the risk sector buying Corporate Bonds, for example that would require congressional okay. We would have to change the law. The same holds when it comes to equities. This is not the Swiss National bank. As things stand within the Federal Reserve act the fed does not have the authority to go out into other markets beyond treasurys, beyond mortgages, and start making forays into Corporate Bonds and stocks. Charles before the press conference, when joe roam powell began to speak the dow was up 45 points. It started waffle a little bit. And then started to collapse a lot of bit. Were you confident that Jerome Powell feels he has a handle on this . He was not sure with respect to coordination initially, suggesting maybe there wasnt, but suggesting there will be quote, unquote formal coordination with his fellow central bankers. He felt like the canned responses we get attached to the fomc statement, those kind of things . I think there is a sure thing australia go overnight. Well see canada come with a very aggressive rate cut tomorrow as well. I wouldnt be surprised to see our counterparts overseas follow in suit. I dont think jay powells reticence spoke to Monetary Policy more what china is doing now in its country, insuring small and medium businesses have access to financing theyre going to need to bridge whatever hit the economy is going to take. Were a Small Business economy. Now we need fiscal authorities to come in to begin to work alongside the Federal Reserve. Charles im glad you brought that up because last week, particularly thursday and friday, we had key fed officials who seemed, i wont say nonchallenge lant but certainly nonplussed. There was not a sense of urgency. I believe their statements helped exaggerate the market on downside both thursday and friday. Today, cool hand Jerome Powell, that what we need right now . Because when he was asked about certain things, credit defaults and some other things that might be out there, it still feels they dont want to accept these things are around the corner, maybe they will wait until it is too late to act . Well, to Powells Point we really have not seen what im writing about this week, the sleeping giant. We have not seen major disruption in the credit markets dot, dot, dot, yet. I would prefer that given that we have until friday before the fed goes into blackout, the 10 days prior to the federal open Market Committee meeting, i would prefer fed officials come out to say theyre proactively working with fiscal authorities to insure that businesses across america are able to get what they need to bridge this area of disruption this, meteor that will hit the u. S. Economy, the Services Side of the u. S. Economy which is the bulk of it because of this coronavirus. This is not the fed on its own, but to your point powell needs to be very adamant and open saying we are working with our fellow agencies and the white house and congress. Charles danielle, thank you very much. Thank you. Charles a seventh death is now being reported. Well come back to this breaking news in a moment but right now in studio i have got from the university of maryland, economist peter morici, who has always been one of the best voices we could get in these sort of circumstances. Peter, you heard my conversation with Danielle Dimartino booth. What is your assessment how early on so far the fed is handling both from actions this morning and over the last week or so . Were they too cool . Were they not necessarily nonchalant about this. I thought it was rip van winkle at the fed didnt wake up until 2 00 friday afternoon after the market slipped four days. Charles right. My feeling the fed has to show understanding and grasp of how the crisis is working. It is not a supply side crisis but a demand side crisis. They need to put money in the store window like they used to say during the depression. That is make it clear the fed will provide whatever liquidity, whatever resources necessary to every singer dwell bank in the country to hold up these Small Businesses affected by these supply side shocks. Charles during the crisis, almost every other week there was a new program. I forget them all but they all had different letters. Almf, the taf, the ta, one after another after another. Felt like they were behind the ball trying to create these things. They have had a decade to start to prepare for Something Like this. There has been a lot of talk about expanding their tool box far beyond lower Interest Rates or Interest Rates. It bothers me when i hear them say theyre in the process of reviewing their tool box. Theyre reviewing in too narrow a range. Theyre basically in a bubble over there and theyre talking about things, if we tell people well keep Interest Rates low until inflation rate runs 2 1 2 for two years to make up lost time that will have an effect. Does anybody really think they will raise Interest Rates in a crisis . They need to start looking for example, at electronic money. Both mnuchin and powell are against that. Basically letting or narrowedry people to have deposits. In hong kong theyre giving money to people. Charles 6,000 hong kong dollars. If we had individual accounts, instead of giving money to the banks where it sits connects interest around give to depositors and namely you and me and we would have money to spend. Can you imagine impact the fed transferring money to American People to use would have a time like this . There are still things out there to buy. You may not buy a Monopoly Game from china but you can buy something else. Charles that brings to us the fiscal side of the equation. What would you like to see from this white house . Because President Trump is obviously been adamant about the Federal Reserve and jay powell is there Something White house and congress should work on . Because theyre squabbling over funding of the coronavirus. They are making this a political football when people say, hey, took the next fiscal step. Dont you remember when nancy pelosi when they brought the tarp to congress and made it a political issue about wall street . We need a physical stimulus program. I described to you, fed with funds as a new tool. That is not legal right now. The thing to do the fed, excuse me the administration and Congress Need a stimulus package and it needs to be positive in following terms. It may be divviesable by four but were only in march. The American People deserve something before december. Charles how do you think, knowing what we know so far and watching the actions that weve watched so far, do you think it has got to get much worse before we can get the true kind of actions you are talking about articulating . Within bounds what is already legal and can be done . I think it is going to have to get worse before pelosi and trump get together, its that simple. The reality is, this may all start to subside by april 1st if china gets its economy up and running again. If lombardi is making auto parts, delivering into the German Automobile manufacturers. It is matter of getting critical many components of supply chain in europe, china moving again. That may not be as far off as people think. Charles it may not be. We watch the information day to day. Thank you very much, professor. We appreciate it. Thank you. Charles peter morici. The breaking news, a seventh person is now dead from the coronavirus in the united states. Latest victim died last week, was just found to be infected in Washington State where the other six victims also died. They have also been they were all at the assisted living facilities. Of course were on these markets throughout the hour. It is a big day for the dow. Were near the lows of the session. Well talk about criticism that powell, that powell gave in to pressure from President Trump. Also, trump on, about to join a coronavirus roundtable at the National Institutes of health. His surrogate, his attorney, jenna ellis will talk to us about his leadership during this crisis. Also later, voters in 14 states are headed to the polls after the establishment democrats making unprecedented moves to box out Bernie Sanders. Is it too little too late . Will it work . Well be right back. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. You wouldnt accept from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. Charles Economic Impact<\/a> continues of the coronavirus continues to weigh on the market. Again this as investors attempt to factor in how impactful the Federal Reserve<\/a>s emergency decision to cut rates by 50 basis points this morning will actually be. As the 10year yield fallen below 1 for first time ever. President trump addresses Central Bank Decision<\/a> to lower rates a little while ago. Take a listen. We have to be competitive with other countries. When were paying two points more than germany, were paying more than other countries, we should pay less than everybody else. Of the fed rate is too high. Simple. It is too high. It puts us at competitive disadvantage, especially exporting our product to other countries. The other countries love that i dont like it at all. I would like to see our fed lead instead of being led. Charles joining me bellpointe chief Market Strategist<\/a> david nelson, Divine Capital<\/a> ceo, dani hughes. On the fed rate cut you wrote that it was not necessarily a surprise. Certainly markets have been factoring it in. Is that one reason there has been this response to it . Keep this in mind, when Jerome Powell<\/a> began to speak, the dow was up 45 points. When he finished we were off 300. We havent stopped going down ever since . David, can you hear me. I thought it was for dani. Sorry, charles. I dont think it was a surprise. It was clearly priced in maybe to a good point, coming into this week, about i think 64 of economists were looking for at least 50 basis points, the fact they took a week early, took it as opportunity to take risk off the table, given how far we went yesterday. Charles dani hughes, the fragility of markets, power of of algoss Federal Reserve<\/a> turning the world upside down. Is this awakening or a piv any of epiphany of some sort . Fed cant control markets. Just when the fed lowered rates the market didnt care anymore. I think that is a lot to do with the fact that were seeing this spread is going to have an impact on the entire globe. And as trump has said, look at global rates. Youve got switzerland in negative 1 . November. 8 of a percent in germany. Japan has negative rates. Even spain and italy are below half a percentage point. So, you have got to understand, eventually american rates are going to be down here. Weve seen yield on 10year go below 1 . It never happened in history. Charles on that point, dani you feel trump has a point, if inevitable we get to zero, perhaps even lower, maybe Jerome Powell<\/a> should have talked more today about the additional tools he has . He was kind of coy on that question. He says, yeah, were working with it. Were trying to figure some things out. It felt like during most moments of his press conference when the selling started to Gain Momentum<\/a> . Yeah, i think that is true. There is a lot of uncertainty. I dont think the fed will lead in that regard. The markets will do what the markets will do. The fed is best responding to that, instead of trying to get out ahead of it. Because this is what happens. Unfortunately were going to see a lot more carnage in the market i believe. I think it is an opportunity frankly for investors to see where they can find some nice sales over next couple weeks but this is not over. The fed isnt going to stop it by just saying okay, well wake rates to negative 2 . That will not stop the carnage. Charles, let me break in. I dont think that is what the fed is trying to do. Theyre trying to keep financial conditions from getting tighter. They ultimately it is not Monetary Policy<\/a> will not stop the problem. Ultimately health care professionals. This will have to run its course. I did some history and wept back looked at 2009. 61 million americans got h1n1 virus. 12,000 died. We got beyond that. Charles david, the fed took action today. He said there could be more coordinated action between himself and other federal bankers around the world. He cant step the coronavirus thats a given but something about the animal spirits of our money that has been the main idea for prosperity around a lot is cued up or connected to the stock market. That is where the fed to me is trying to play a role here. Theyre trying to play a role. Coming into this we were positioned for growth. This is not demand driven slowdown like typical recession this is a supply shock. More like a 9 11 event. Meteor hits the earth or hurricane katrina. Business stops and markets, you just said it before, the markets are going through price discovery. Were trying to find out what the multiple we put on lowered earnings . It is lower than what charles we know the p but we dont know the e right now. We dont know the e. Charles to that point you say we have a lot more to go to the downside. Almost everyone suggesting at very least we tested lows of friday, that intraday low. For the dow that would be 24,681. For the s p, 28055. If those dont hold where do we go . It is a good question. Im not a technical person but i do think we havent even seen the market puke it up so to speak. That is what we say in technical terms as a marketmaker. We have not seen that kind of hurt yet. I think a lot of people have been cued to actually take advantage of markets like this. Dont forget, we have a whole generation of people that did not go through 2008, 2009. So theyre looking at this, oh, this is a sale. A lot of the online Brokerage Firms<\/a> opened up a Record Number<\/a> of accounts with people putting in deposits and starting to buy companies they felt were on sale. I think well see that until we dont. That is what im talking about. That point has not happened yet. Charles the idea from wall street that main street must give up before the market can turn around. Goes back to kennedy, joe kennedy. Thanks very much. You guys helped tremendously. Meanwhile folks, the Federal Reserve<\/a> obviously taking action. Jerome powell making a statement after todays emergency rate cut in response to the Economic Impact<\/a> caused by the coronavirus. Take a listen. We have come to the view now it is time for us to act in support of the economy. Once you reach that decision we decided to go ahead. We saw a risk to the outlook of the economy and chose to act. Charles President Trump<\/a> is pushing for the fed to do more. How far can the central bank go . Will they go . Several former fed officials in fact said the fed needs to expand their tool box. So what might that look like . I want to bring in former dallas fed advisor, Danielle Dimartino<\/a> both. Danielle, i know youre not a big fan of the fedex expanding their tool box. Ben bernanke said as much. I spent a lot of time researching. Went back to the operation twist, 1961, named after the old Chubby Checker<\/a> dancer craze. There is no way they can use Interest Rate<\/a> cuts alone to combat major catastrophes like the one theyre facing now. No, charles, youre absolutely right. Theyre not going to be able to. We already got for the march 18th meeting coming up in a matter of days, we already have the market beginning to price in another half percentage point rate cut. After that, they just got one more to go, if were going in 50 basis. Increments. If you remember, i know you were there, 2018, 2007. Once the emergency rate moves come in, the fed moves quickly to the zero bound, which comes to your question, what next . Brainard on the fed has done a very good job mapping out what the next steps will be. Will fed move from treasury bills into buying longer term treasury coupons, past 12 months ever maturity. I think that is to be the case. There is talk of capping the 10 rate yield. That is not such a hard task when i think it hit 0. 96 . Charles, im happy youre in washington because that is a very Historic Place<\/a> to be because right now were witnessing history with the 10year yield. Charles what about going so far to actually buying equities, sort of bank of japan, etfs, things like that . People are wondering, since the fed appears to have unlimited amount of money it can print certainly coming to saving wall street, why are there not any boundaries anymore . There are legal boundaries and deal with the gentlemen and jent women in congress for the fed to go beyond mortgagebacked securities. If the fed takes one more step out on the risk sector buying Corporate Bonds<\/a>, for example that would require congressional okay. We would have to change the law. The same holds when it comes to equities. This is not the Swiss National<\/a> bank. As things stand within the Federal Reserve<\/a> act the fed does not have the authority to go out into other markets beyond treasurys, beyond mortgages, and start making forays into Corporate Bonds<\/a> and stocks. Charles before the press conference, when joe roam powell began to speak the dow was up 45 points. It started waffle a little bit. And then started to collapse a lot of bit. Were you confident that Jerome Powell<\/a> feels he has a handle on this . He was not sure with respect to coordination initially, suggesting maybe there wasnt, but suggesting there will be quote, unquote formal coordination with his fellow central bankers. He felt like the canned responses we get attached to the fomc statement, those kind of things . I think there is a sure thing australia go overnight. Well see canada come with a very aggressive rate cut tomorrow as well. I wouldnt be surprised to see our counterparts overseas follow in suit. I dont think jay powells reticence spoke to Monetary Policy<\/a> more what china is doing now in its country, insuring small and medium businesses have access to financing theyre going to need to bridge whatever hit the economy is going to take. Were a Small Business<\/a> economy. Now we need fiscal authorities to come in to begin to work alongside the Federal Reserve<\/a>. Charles im glad you brought that up because last week, particularly thursday and friday, we had key fed officials who seemed, i wont say nonchallenge lant but certainly nonplussed. There was not a sense of urgency. I believe their statements helped exaggerate the market on downside both thursday and friday. Today, cool hand Jerome Powell<\/a>, that what we need right now . Because when he was asked about certain things, credit defaults and some other things that might be out there, it still feels they dont want to accept these things are around the corner, maybe they will wait until it is too late to act . Well, to Powells Point<\/a> we really have not seen what im writing about this week, the sleeping giant. We have not seen major disruption in the credit markets dot, dot, dot, yet. I would prefer that given that we have until friday before the fed goes into blackout, the 10 days prior to the federal open Market Committee<\/a> meeting, i would prefer fed officials come out to say theyre proactively working with fiscal authorities to insure that businesses across america are able to get what they need to bridge this area of disruption this, meteor that will hit the u. S. Economy, the Services Side<\/a> of the u. S. Economy which is the bulk of it because of this coronavirus. This is not the fed on its own, but to your point powell needs to be very adamant and open saying we are working with our fellow agencies and the white house and congress. Charles danielle, thank you very much. Thank you. Charles a seventh death is now being reported. Well come back to this breaking news in a moment but right now in studio i have got from the university of maryland, economist peter morici, who has always been one of the best voices we could get in these sort of circumstances. Peter, you heard my conversation with Danielle Dimartino<\/a> booth. What is your assessment how early on so far the fed is handling both from actions this morning and over the last week or so . Were they too cool . Were they not necessarily nonchalant about this. I thought it was rip van winkle at the fed didnt wake up until 2 00 friday afternoon after the market slipped four days. Charles right. My feeling the fed has to show understanding and grasp of how the crisis is working. It is not a supply side crisis but a demand side crisis. They need to put money in the store window like they used to say during the depression. That is make it clear the fed will provide whatever liquidity, whatever resources necessary to every singer dwell bank in the country to hold up these Small Business<\/a>es affected by these supply side shocks. Charles during the crisis, almost every other week there was a new program. I forget them all but they all had different letters. Almf, the taf, the ta, one after another after another. Felt like they were behind the ball trying to create these things. They have had a decade to start to prepare for Something Like<\/a> this. There has been a lot of talk about expanding their tool box far beyond lower Interest Rate<\/a>s or Interest Rate<\/a>s. It bothers me when i hear them say theyre in the process of reviewing their tool box. Theyre reviewing in too narrow a range. Theyre basically in a bubble over there and theyre talking about things, if we tell people well keep Interest Rate<\/a>s low until inflation rate runs 2 1 2 for two years to make up lost time that will have an effect. Does anybody really think they will raise Interest Rate<\/a>s in a crisis . They need to start looking for example, at electronic money. Both mnuchin and powell are against that. Basically letting or narrowedry people to have deposits. In hong kong theyre giving money to people. Charles 6,000 hong kong dollars. If we had individual accounts, instead of giving money to the banks where it sits connects interest around give to depositors and namely you and me and we would have money to spend. Can you imagine impact the fed transferring money to American People<\/a> to use would have a time like this . There are still things out there to buy. You may not buy a Monopoly Game<\/a> from china but you can buy something else. Charles that brings to us the fiscal side of the equation. What would you like to see from this white house . Because President Trump<\/a> is obviously been adamant about the Federal Reserve<\/a> and jay powell is there Something White<\/a> house and congress should work on . Because theyre squabbling over funding of the coronavirus. They are making this a political football when people say, hey, took the next fiscal step. Dont you remember when nancy pelosi when they brought the tarp to congress and made it a political issue about wall street . We need a physical stimulus program. I described to you, fed with funds as a new tool. That is not legal right now. The thing to do the fed, excuse me the administration and Congress Need<\/a> a stimulus package and it needs to be positive in following terms. It may be divviesable by four but were only in march. The American People<\/a> deserve something before december. Charles how do you think, knowing what we know so far and watching the actions that weve watched so far, do you think it has got to get much worse before we can get the true kind of actions you are talking about articulating . Within bounds what is already legal and can be done . I think it is going to have to get worse before pelosi and trump get together, its that simple. The reality is, this may all start to subside by april 1st if china gets its economy up and running again. If lombardi is making auto parts, delivering into the German Automobile<\/a> manufacturers. It is matter of getting critical many components of supply chain in europe, china moving again. That may not be as far off as people think. Charles it may not be. We watch the information day to day. Thank you very much, professor. We appreciate it. Thank you. Charles peter morici. The breaking news, a seventh person is now dead from the coronavirus in the united states. Latest victim died last week, was just found to be infected in Washington State<\/a> where the other six victims also died. They have also been they were all at the assisted living facilities. Of course were on these markets throughout the hour. It is a big day for the dow. Were near the lows of the session. Well talk about criticism that powell, that powell gave in to pressure from President Trump<\/a>. Also, trump on, about to join a coronavirus roundtable at the National Institutes<\/a> of health. His surrogate, his attorney, jenna ellis will talk to us about his leadership during this crisis. Also later, voters in 14 states are headed to the polls after the establishment democrats making unprecedented moves to box out Bernie Sanders<\/a>. Is it too little too late . Will it work . Well be right back. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. You wouldnt accept from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. Charles President Trump<\/a> is assuring americans that a vaccine for the coronavirus is being worked on at a breakneck pace. He will be in a roundtable on the virus and what more is being done to keep people from getting sick. Despite the efforts he is scrutinized by the left looking to politicize the entire crisis. Joining me to discuss attorney for President Trump<\/a>, jenna ellis. Thank you for having me, charles. Charles look, i really believe, that we could, this coronavirus would have been the one topic that could not be politicized and yet it feels like almost every day there there is zing o. He tweets out something inflammatory or disrespectful. It doesnt stop. Charles you would hope Something Like<\/a> this could bring the nation together and recognize this is nonpartisan issue and that President Trump<\/a> clearly got ahead of this, made the best decisions he could all along the way but even today, a report from my hometown in denver, colorado, where a city councilwoman endorsed in favor after tweet that someone else sent out, saying if she was infected by the coronavirus will go to every maga rally she can. Charles every trump rally. Yeah. This is ridiculous. So the democrats initially were saying that trump was xenophobic and racist because he was restricting travel from asian countries. Now all of sudden he is now doing enough. I always said trump could literally cure cancer and democrats would find something wrong with that. Charles in new york, first reported case, someone got back from iran. We know of course there is a reason why the impact has been so heavy in california, Washington State<\/a> and oregon because of proximity to china. In hindsight obviously looked like a brilliant move. Even when he was suggesting it, it felt like it was the right move to do. Joe biden called him xenophobic for it. Where do we go from here. You spent a lot of time with the president. How does he grapple with it . I watched the last few press conferences. It gets off into the tangents whether or not pence is a czar or not. Whether concrete questions americans are looking for, solutions or answers . President trump is doing such a great job and so is the Vice President<\/a> getting the facts out there, reassuring the American People<\/a> theyre doing all they can and the administration is working together with the cdc, working with everyone, making sure this virus is contained to the best extent possible. I think that is all we can do. The press can just ask their questions and charles hold on here. We have President Trump<\/a> right now. National institute of health. Were having a roundtable. Things are going very well as you can see. It has been very strong. Mike pence and the entire group are doing an excellent job and, do you have any questions . [reporters asking questions] reporter do you think it is inevitable that the coronavirus will spread across the country and it is possible we may need more stringent measures to contain it . Well, anything can happen i wouldnt say inevitable at all. I wouldnt say. We have done a good job by doing it and combat iting it so early. We have the best people in the world. I think were getting a lot of credit for having made that early move. No, i dont think that is inevitable at all. Reporter what do you need to see from congress right now . Well i think congress, were working along well with congress to get the various funding were looking for. Thats important in terms of stopping what were doing. Some countries have some very big problems. Were working with them to help them. Theyre really unaware of, they have never done this before. We do it very well. Were working with other countries and that is very important. Reporter on the olympics do you believe the olympics should be held in japan. Are you comfortable i will leave that to Prime Minister<\/a> abe. He is a friend of mine. He built a beautiful venue. That is sad thing if that were to happen. The venue is incredible are. They spent billions of dollars. I will leave that up to japan. That is up to them. Reporter what should the fed funds rate be . I would say the fed funds rate, the rate as you would call it is too high. It should be eased down so were competitive look, we have the greatest country in the world. We have the strongest country in the world. It is our dollar that the world relies on. We should have the low rate. But we have a fed that doesnt agree with that. I disagree with them. [reporters asking questions] say it. [inaudible] i did, i spoke to the leader of the taliban today. We had a good conversation. We agreed we dont want violence there is no, no violence. Theyre dealing with afghanistan. Well see what happens. Reporter is this a pandemic, sir . We had a good talk with the leader of the taliban. Reporter do you believe the democratic establishment is trying to take it away from Bernie Sanders<\/a> . I think there is no question the establishment, the democratic establishment is trying to take it away from Bernie Sanders<\/a>. No question about that in my mind. Now look, a lot will be learned tonight. Well see how well biden does. Well see how well sanders does. I would have said two, three days ago, biden was not looking too good. Now he is looking better but a lot is going to be done by a certain time tonight, you tell me the time. By california were a little bit, were a little delayed. So probably by 9 00 or 10 00 tonight well have some big answers. Reporter what should happen patients who dont have insurance, mr. President , what should happen . Will your administration were looking at the whole situation. There are many people without insurance. Were looking at that situation for those people. [reporters asking questions] [inaudible] whoever it is. I dont really care. Whoever it is. Well take them on. Hey, the job weve done, we rebuilt the military, we have the strongest economy weve ever had, all of the things weve done i will take on anybody. Reporter you will debate any of them . Any of them. Very gladly. Very gladly. Go ahead. Reporter do we need to have more stringent containment measures to stop the virus from spreading . Were being very stringent but were now looking at other countries that have been badly affected. Were think about doing something. We may have have to do. We dont want to do that, were looking at other countries and being very strict. Im going. I will be back. See you over there. Go ahead. Reporter [inaudible] say it . [inaudible] were not looking at that at all. There is only one hot spot. That is also pretty much in a very, in a home, as a nursing home. Reporter [inaudible] no, not at all. Not at all. Were doing a fantastic job. The professionals are doing a great job. Were really happy with the job theyre doing. They have been ahead of it. Were ahead of it by having stopped so much earlier than, nobody wanted us to duty off access to our country and i did it early. By doing that, that was a big step. Otherwise many more people would be infected. Reporter [inaudible]. When did they announce that . A little while ago . Thats a tough move. Im not prepared for that. Let them do what they want to do. Im hearing more and more about that. I dont think it would be necessary, no. Reporter what other countries, sir . Too bad. Jeff, go ahead, question . Reporter [inaudible]. Cutting off travel to and from italy and [inaudible]. Were watching italy very closely. South korea very closely. Even japan very closely. Well make the right determination at the right time. Weve cut it off as you know with numerous other countries. Okay . Say it . Reporter any other countries youre considering cutting off travel . They are the hot spots right now. No. [reporters asking questions] charles President Trump<\/a>, giving another impromptu press conference of sorts. Certainly answering questions. The most pressing having to do with the coronavirus. A lot of interest on what the next moves could be, particularly here in this country. Two separate reporters asking about how stringent travel restrictions may be even within this country. President trump expressing confidence that may not have to come to that although he is focused on other countries. I want to bring in housing and urban Development Secretary<\/a> dr. Ben carson who of course is on President Trump<\/a>s virus task force and joins us in studio. Dr. Carson, always a pleasure to see you. My pleasure, thank you. It is sort of ironic. I was talking with President Trump<\/a>, one of his attorneys, jenna ellis about the initial reaction to trump and his travel pushback on china and calls about being xenophobic. Now the media is asking over and over again would additional travel restrictions should we expect, even perhaps pertaining to the entire eu. Where do you see that going . Well you know, i think it is interesting the president got a lot of pushback when he initially wanted to impose those travel restrictions and thats been a history that ive seen over the last few years and he feels very strongly about protecting the American People<\/a>. I think that is a very good thing. I think, you know, this is something that really, so silly to politicize this. You saw that the Drug Companies<\/a> yesterday got together, the arrivals well Work Together<\/a> to get this done. Why cant the leaders of our country adopt a similar attitude . What example does this really set for our children . Charles what do you make also of the extreme criticism in the media of the composition of the task force to fight the coronavirus from Vice President<\/a> pence, even someone who is successful in the medical field as you, the media has gone nuts over the idea this is the quote, unquote team. This is of course the same media didnt have a problem with lawyer heading up president obamas ebola task force. I suspect if jesus christ was on the committee, they would have a complaint about that. I really dont pay a lot of attention, the boy who cried wolf too often. Charles what is the course . You guys met a couple times. Im sure you must have had conference calls. Whats the, whats the planned course of action . I would assume each person has a role there. Where do you see it going . Well the key thing we are very carefully monitoring on a daybyday basis. What the direction and velocity of the problem is. And, asking ourselves each day what could happen next. Whether the various possibilities and are we ready for that . As long as we keep asking that question with every change that occurs, i think we will be prepared and, you know, were all getting an opportunity also to see what is going on in other countries. Charles right. And learning from that, because some of them were much further ahead than we are in terms of the intensity of the disease process. Charles and to that point china, their rate of growth at least officially started to turn or come down over a week ago. I find that to be intriguing. Already Companies Like<\/a> starbucks and apple saying were going to start operations again. Yeah. Charles another thing i find intriguing what is rarely mentioned in the media, of the 80,000 some odd folks who contracted the virus 45,000 have recovered. Right. Charles that is sort of a hopeful part of the message that doesnt get out there. That is very hopeful. Also, as far as i know, no children under the age ever 10 have succumbed to the disease either. You know, there are some hopeful signs and one thing we do know, this too will pass. Charles it will pass. There is no doubt about that but daytoday theres obviously for the administration there is a really delicate balancing act of keeping those animal spirits, that revitalization of america that comes really from people feeling great. Right. Charles thats an intangible sometimes that has to be kept aloft if you will from leadership . You know, as, roosevelt said, world war ii, the only thing to fear is fear itself because fear itself makes you sometimes do illogical things and, for the most part people can go on living their normal daily lives but they need to recognize that we are dealing with a contagious virus. What do you do when youre in flu season . That is the way you should be acting now. Charles youre not saying it is the flu. At this point considered far more dangerous. Same kind ever precautions. Same precaution. Exactly. Charles the deaths in Washington State<\/a>, mostly elderly folk. Right. All concentrated in one cluster. And, you know, although we feel horrible for the people there, it is somewhat encouraging that it doesnt seem to be spreading wildly across the country. Charles i can say with certainty another thing that is encouraging youre involved in the project. Well, thank you. Charles i really appreciate you. I respect you. And i know with you involved along with all the other members of the task force were in great hands. It is a dynamite team. A lot of people ive known for decades, really, really smart people. Were in good hands. Dr. Carson, thank you very much. Let folks know why am i in washington, d. C. Today . Today i had great honor moderating a Keynote Panel<\/a> celebrating 155th anniversary of the freedmens savings and trust. The Financial Institution<\/a> signed into existence by Abraham Lincoln<\/a> to serve black civil war vets, those recently freed with enslavement along with those never enslaved including doctors and educators. Get this, the bank attracted 57 million in deposits as percentage of total american gdp will be equal to 115 billion today. John hope bryant, ken kelly, chairman of ceo of First Independence Bank<\/a> and chairman of the National Bankers<\/a> a association, and the ceo of chase consumer bank. By the way passion for Financial Instruments<\/a> an inclusion has resulted in numerous initiatives. The vision of the panel and the 200 in attendance was clear and it was very encouraging. I want to give a special thanks to treasury secretary Steve Mnuchin<\/a> for making this happen. I want to borrow from his statement. The story of the freedmens bank illustrates the importance of financial opportunities to all americans. This is important to remember as Many Americans<\/a> still feel left out Financial System<\/a> and left out of the american dream. To be honest this is one of the reasons why Bernie Sanders<\/a> is resonating so much from this election cycle and why donald trump resonated so much years ago. I want to get back to the market under extreme pressure even after the Federal Reserve<\/a> cut rates. Claman countdown host is with me now, liz claman. What are you expecting next hour . That is a loaded question. Weve had more than 900 point swing today alone. Right now the dow is down 813 points. More importantly, charles, i know you have been watching the bond market, the 10year treasury yield going below 1 , getting closer and closer to zero. That should worry people a lot more than an 800 point loss on the dow. Weve watched the markets do unbelievable swings. When you see that, folks, that is a massive flight to safety move and what does it say . It says however the president tried to encourage or pressure the Federal Reserve<\/a>, the Federal Reserve<\/a> took that baton. They cut rates at an emergency meeting this morning by 50 basis points. It is having the opposite of its intended effect. It was supposed to buoy the markets. Guess what, making heloc or refi cheaper or Better Mortgage<\/a> rate is not going to make people want to go out and suddenly have dinner at a very crowded restaurant. There is also a supply chain crunch at the moment. The fed has nothing to do with that they are not able to fix those kinds of issues, they never were. Thats not in their mandate. So what were going to do is go commercial free final hour of trading, well whip through every single metric, volatility of gold, jumping 50 bucks. Oil falling 46 a barrel at moment. The dow is down 911 points. Just yesterday we saw the dow, s p, nasdaq with their largest point gains, you were right there, the largest point gains ever. Charles yep. That should be a lesson, right, charles . The bottoming out process is not a single day moment in time. Charles its a process. Fits and starts. Charles yep, its a process. Same with the rate cuts, they may after couple more have desired effect over a period of time. Were in something you cant just get out of in one day. Liz, everyone will be prepared. Well be buckled up. Well have our pens an pencils out. Were ready for your show. Youre doing amazing job. You must watch the show. Congratulations what you did today. Africanamericans have the power of the dollar. They have the money. They have the vote. Give it to them. Dont prevent them from getting rents, renting apartments or making loans a lot more expensive. That is an outrage. It should have stopped a long time ago. Congratulations to. Thank you my friend. See you in a few moments. Meanwhile millions of voters headed to the polls on super tuesday where 1400 delegates are up for grabs. That is 1 3 of the overall total. There is a sense that the landscape has completely changed in the last few days. This with joe biden getting a slew of endorsements from his former rivals but Bernie Sanders<\/a> is expected to win big today especially in california. Of course lets not forget mike bloomberg. He is on the ballot for the first time. With all of this, lets go to up with of those states, North Carolina<\/a> and our very own connell mcshane. Connell, a lot of people saying North Carolina<\/a> could even be more pivotal, there is no early voting there. Might give us a greater sense what changed since South Carolina<\/a> . No there is, charles. There is, charles. A number of people voted 800,000, just like california. That is one of the key things we look at tonight. Those people at they didnt know about the biden win, right, in South Carolina<\/a>. They dont know about his momentum. As they would on saturday. Does the momentum carry through tonight . That is one of the things were looking at. The bloomberg factor is another. It is about the size. It is about the math like watching the markets. The delegate math and how big after delegate lead Bernie Sanders<\/a> can build up tonight. Were at a polling stags in west charlotte. Had a pretty steady flow of foot traffic coming in. Were talking to voters why they make their decision. There are is couple interesting things. Here are couple of biden supporters. He needs more than this take a listen. He stand for what i believe in, health care, education, all the things i believe in and he is a man of character. And i feel like he will bring this country back together because right now were so divisive. And there is so much rhetoric and meanness. Although i respect the other candidates and some of the things that Bernie Sanders<\/a> is saying are good and elizabeth warren, they can say things but not saying how they will pay for these things. I need to know how you will get something done and if you can be trustworthy. So if we run through the numbers now, were doing the delegate math, big three, 14 tonight, california, texas, this state where we are, 55 of the total. Couple things to remember, charles, when you watch the results come in. No winnertakeall states on the democratic side, right . You could win a state if youre Bernie Sanders<\/a> or even joe biden and that win might not be as big as you think because somebody else is above 15 and theyre getting some delegates. Second thing we talked about, early voting, not only here in North Carolina<\/a> it might play but state like california where maybe close to half or 40 of the people voted early. Another crazy day. One eye on your show and markets and another eye on politics. Well try to put it together on after the bell live from charlotte at 4 00 p. M. Charles that is a serious juggling act. Well see you 4 00, connell. All right. Charles Kevin Walling<\/a> and Liz Harrington<\/a> join me. You heard the two women interviewed, talking about biden, a man of character, someone they can trust. This seems now to be the wind in bidens sails, right . Familiar face. It is interesting, a week ago he was shaky. Very true. Charles he was so shaky to the point where Michael Bloomberg<\/a> came into the race. Was a win in South Carolina<\/a>, that overwhelming and did it change things that much . I think it was, charles. He had a really strong debate performance in South Carolina<\/a> that propelled that nearly 30 point victory in the palmetto state driving a lot of folks to come home to joe biden as particularly the safe choice in this primary with it looking more likely it will be Bernie Sanders<\/a> and joe biden a twoman race headed towards the convention in milwaukee. Charles i tweeted during the debate, that was the joe biden that stared down corn pop. Corn pop. Charles that was the old biden, right . That was the old biden there. Didnt always know what he was saying but right. Were going out on super thursday, he is running for u. S. Senate. Charles people are overlooking that stuff, right, liz . But you have to ask yourself, just as political observer, on either side of the political aisle is it too little too late . Feels like bernie has certain amount of momentum. He is going to the states where support amongst hispanics will grow and support in texas and california and other states . The democratic establishment keeps meddling in their own elections. During the impeachment sham they sidelined Bernie Sanders<\/a> in iowa. Didnt help joe biden, he finished fourth place. He finished fifth in new hampshire. Lo and behold 33 years after running for President Joe Biden<\/a> manages to win his first primary state. But the real problem for joe biden, for Bernie Sanders<\/a>, all of these candidates is, they have adopted the sanders agenda. They are the radical left party now that says there is no room for fossil fuels in my administration. I want a climate revolution. Im going to eliminate millions of doll lars, millions of jobs in natural gas production. Those are all platforms that joe biden has endorsed. Theyre far out of the mainstream. That will be a total loser come november. Charles that is always been a problem, particularly in more recent elections, president ial elections with winning primaries and winning general elections. I think this is where bloomberg, mayor bloomberg is really unique. It is felt like from the very beginning he has run almost as a general election candidate. Many thought after super tuesday, after South Carolina<\/a> and today he might be willing to bow out. We have a sound bite because it doesnt sound like he is going to bow out. Okay. You heard what he said. Absolutely. Charles i won new york city three types. Im in it to win it. He made comments that you know, just because you dont have to come in first or second to win a brokered convention. The brokered convention hung over Democratic Party<\/a> like sword of dam 345 close. If you have a brokered convention a large swath of people will be unhappy no matter who the ultimately nominee is. You make a great point. A brokered convention is the nightmare scenario for democrats. I think well have a nominee about that point. His comments and joe biden, clear the rnc dont want to run against joe biden, got into the impeachment mess. That is fake news. Why they were going after hunter biden to bring down joe biden. It was targeted, sure, sure, that is why the president did that for the hunter biden aspect. I think well see coming at it tomorrow. As you point out, 40 of our delegates up for grabs tomorrow. I think the Vice President<\/a> will have good night in places like texas, in virginia, in massachusetts. Charles i mean if i had to go as a political novice looking at crowd size and energy and enthusiasm, feels to me Bernie Sanders<\/a> will be the candidate that President Trump<\/a> wouldnt want to go against. But, liz, is rnc, have you handicapped this yet . Are you sitting back letting it play out . Were sitting back and watching it burn. This is such a divided democrat party. We frankly would like to face any of them. I mean, i dont know if you saw joe biden yesterday, but he is having trouble quoting declaration of independence. Worse than that. You got a tax cut. You like what you got. You like what is happening in your life. I will take that away from you. We easily can take on joe biden or making argument about gaffs with the current president incouple bent is winning arguement against joe biden for sure. Talk about gaffs, but talk about results. Three years versus 50 in the swamp. What has joe biden ever done except rebuild charles next 24 hours well know a whoa lot. Never done anything except build Hunter Bidens<\/a> resume. Bring it on, come november. Charles well see. Thank you very much. Kevin and liz. Special super tuesday coverage kicks off tonight at 8 00 p. M. Eastern hosted by as always very own neil cavuto. We have breaking news, nine people are dead from the coronavirus in the united states. Washington state Health Officials<\/a> adding two more victims to the tally. Eight of them came from the same county. There are 27 positive cases in that state. At least two tornadoes tearing through central tennessee early this morning killing at least 22 people. President trump offering his prayers to the state. I want to send my warm wishes to the great people of tennessee in the wake of the horrible, very vicious tornado that killed at least 19 people and injured many more. Were working with the leaders in tennessee, including their great governor bill lee to make sure everything is done properly Charles Grady<\/a> trimble is on the ground in nashville on super tuesday where polling stations are being impacted by the damage. Grady, give us an assessment of everything. Reporter charles, this is one of the hardest hit areas. This is bad. This is east nashville. You mentioned polling places. Im not sure how many are close to here. There were some that had damage. They had to close them, redirect voters to other places. Bring your attention to the roof here. This is from another building about a block 1 2 away. That gives you an idea of the extent of this damage. How strong the wind were when this tornado ripped through this area today. This neighborhood in particular, the shops nearby theyre trying to rebuild right now. A lot of people in this area came to look at the damage, ended up pitching in just helping. They dont know people who are affected. They dont live in these houses but theyre helping out in any way they can. As of right now you see all the power lines in the neighborhood there is no power of course. Of. Crews made their way into the neighborhood t still could be a while yet. Here is some damage. This car, windows shattered. I dont know if you can see this over here, dutch, somehow this utility poll got lodged up in there, and splinters are poking out of it. Hard to say, charles, what came from where and how it ended up there. But some very serious damage here. We dont know how that affected voters today. But certainly something to keep an eye on because as you said, it is super tuesday, ten see a primary state today. Charles . Charles absolutely, the loss of life we want to recognize more of that as well. Grady, thank you very much. Folks roller coaster ride continues as far as the stock market is concerned. Federal reserve cut rates as anticipated 50 basis points. What they wanted to do is sort of help investors psyche if you will. Did it momentarily. We rocketed higher. We gave it all away. Meanwhile treasury secretary Steve Mnuchin<\/a>, well he applauded the cut. He says that the outbreak will have shortlived impact on our economy. It is very different than the financial crisis. We want to juxtapose those two things. Bring in cio of bahnsen group, david bahnsen, david nelson and dani hughes come back with us as well. Wall street anticipation much a rate cut. One oil adage, sell the news. Feels like that as well. Feels like puts us back at square one. I dont feel this has anything to do with Monetary Policy<\/a>. Panic hysteria, uncertainty around coronavirus is monetary phenomena is certainly fraught. Best precedent is 9 11, category Different Event<\/a> as well. They tried to add more liquidity to markets that way. Ultimately theyre being front run. Futures market is telling them how much they want in rate cuts. Now theyre looking for even further rate cuts. That is what happens when you go down this path. When youre reliant on stimulus and Monetary Policy<\/a>, it is never enough. They will end up going to qe four. That is what ends up be a precedent in our country the fed is there to offer whatever liquidity and favorable rates whatever the markets want in the future. Charles the tail is wagging the dog, the tail in this case is the forces moving markets. This is going on long before President Trump<\/a> was in office. I remember when yellen finally succumbed. She quickly changed her mind. Feels like every Federal Reserve<\/a> official, chairman, chairperson, david bahnsen, no matter what intentions they come into the job with, always succumb to what wall street wants. Youre saying saying im saying its going to lead to a mispricing of assets. Its going to lead to a distortion of risk in capital markets. Absolutely. Youre exactly right. I trace it back to 1998, with Allen Greenspan<\/a> when he went and cut rates in the midst of the russian currency issue and longterm Capital Management<\/a> and some of those things. When the economy was growing over 5 real gdp at the time, and yet the stock market had dropped 20 and it immediately recovered. So its been going on for well over 20 years and the markets believe the feds going to be there. Today, they came in with a cut before their next meeting but now everyone is wondering whats going to be the next cut and thats the problem. Its never good enough. Charles of course, when greenspan got on the job, he was there for a couple months, took some swift action from the worst oneday drubbing the stock market ever endured and it gave him the moniker, they made him feel like hey, this guy is the ultimate genius and hes run with it ever since. Outside of that, though, one thing that hasnt been discussed enough, perhaps, is the fiscal side of this. Do you think that theres a role for the federal government and congress to do anything to step in here . Because maybe they could actually mitigate some of the damage to main street. Well, going back to greenspan and the days of irrational exuberance, that was quite a long time ago. There are a lot of things that have changed since then that are structurally different in our markets. For one, we have algorithms driving so much of this volume and volatility. Market structure is entirely different. You dont have humans standing in the way, as specialists or market makers, to stop the gaps we have now. Thats why we will see this volatility be so dramatic. So does the fed have a place, i think it does. I frankly think this was way too early for the fed to step in but unfortunately, forces beyond the feds control forced them to show their hand. The markets are going to do what the markets are going to do. I think that thats really the way that we need to see this through. I think one thing that we can really depend on is the power of the American People<\/a> to drive things and recover from things like this. I know that will happen eventually but we have to see this through. Charles to that point, david nelson, one of the things that i thought would be interesting to watch as far as markets are concerned is these live updates. We had yesterday an alert of six additional deaths in Washington State<\/a>. We just now had an alert on two more and the dow was off 900 points when the alert came out. Can we get to a point where the headlines no longer trigger human beings, you know, they are always going to trigger algorithms but maybe human beings dont take the bait. For a lot of longterm investors, they look beyond the fed and beyond a crisis like this. I think most investors know this is going to pass at some point. We dont have a handle on when that is. And we will probably see it sometime, my best guess at this point, probably sometime this summer. Ill be on this show looking at this in the rear view mirror. These things run their course. We talk about the additional deaths but we dont talk about the people being cured. People get this disease arent going to be diseased forever. They recover. And if you go beyond three, four, five weeks, you either passed away which is a very small number, or you have survived and you move on. Commerce will come back. Until it does, the markets going to react like this and extrapolate the worst. Charles david bahnsen, i want to get your thoughts on wall streets version of main street investors. In other words, the notion that the individual investor must lets talk about the emotions. They have to capitulate, be discouraged, be totally annihilated and out of this market for the coast to be clear. Some of that feels like wall street arrogance because every investor i talked to, i would say 90 are saying they are calm, calmer than the news, calmer than wall street and calmer than the markets. Do you want them to panic . Of course i dont. Believe me, i work with private wealth clients. We do a lot of work to make sure our clients stay calm and understand our perspective. Behavioral finance drives investor resolve but i do think its fair to say from history that there has often been a significant amount of flows out of mutual funds from smaller investors right before markets hit bottoms. That contrarian indicator has generally been there. Its been there on the other side, too, when theres a big bubble, theres a lot of euphoria from smaller investors. I agree, i think a lot of main street is much smarter than it was during dotcom and even it was smarter with the housing crisis, okay, the whole bubble there. Ultimately, there are still contrarian indicators you have to look to. But i believe we have done a good job in educating the investing public. I dont know anyone on wall street that wants people to feel pain. Charles david, david, dani, have to leave it there. Liz claman, its yours. Liz i will take it. Charles, i am pretty sure what people are seeing on the screen was not exactly the feds intended effect but as we head into the final hour of an extremely volatile session, dow jones industrials, down 710 points. The Federal Reserve<\/a>s emergency announcement this morning that it was dropping a shock and awe50 basis point interest cut on the markets has now triggered a stunning flight to safety. The complete opposite of the confidence it was meant to inspire. You are looking not just at jay powell but what was in the aftermath, a never before seen low in the tenyear treasury yield. 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