However the Economic Situation sets us all now is much into sizes the importance of family and community and industry to the nations liberty and prosperity all right crossed up rules in effect that means you can jump in if you dont want and i always appreciate it ok when we go to our national 1st in new york last week we came out with some new job numbers and it was quite surprising for a lot of people there was a row of jobs growth approximately over 2000000. 00 though there seems to be some all of the issues now which was interesting in itself. Which gives people reason to believe that there is some kind of recovery and i would really would like in this program to be politicized that i dont want to talk about who whose advantage it is ok because thats its turned into a political football and we need even with something that is the Great Depression so i think we have to take it very seriously so marshall i mean are we in some kind of recovery or is it too early to say more recovery in some sectors and not others. Kind of you know unpack it for us you know without getting too political the look that the idea is if you if you go if you if you stop a car you know youre going 100 miles an hour then you stop a car then and it goes to 0 and then you break celebrate and it goes 20 miles an hour of course you know the car is moving again and. So course thats progress but you are still far from seeing that automobile move operated at maximum efficiency so leaving aside this is the goal legend and there are there is problems about and im sure well get into that yes theres been some recovery but you are still dealing with some youve still got some profound long term structural issues which i think are far from being resolved your opinion i mean its one of the things that you know a situation like 2 very sudden because this was this was selfinflicted the kind of it was turned off it was a it was it a choice ok but as we come into this recovery if you know the word recovery is. The a trying to reveal some of the structural problems that were in the economy in the 1st place and i think that thats something that we need to look at is well because i belong to lamented people talking about these really big Macro Economic numbers that doesnt really always tell you very much about the economy or what how the markets are. You know i mean you know you come out with you know these different various job reports and then the markets are soaring and they seem so disconnected because it really doesnt have much to do with the average working family. You know thats exactly right and i think that the reason that the economy was kind of on a weak footing coming into this year is why weve had the rebound in the stock market that we have and that is that the Federal Reserve kept Interest Rates at artificially low levels for so many years that nonfinancial business debt in this country was allowed to double so it was an accident waiting to happen so to speak and once that accident did happen you know that the blackest of black swans then we saw a much faster underground filling in the Corporate Bond market and what would have been expected and that was just it was just a by product of them being as over levered as they were which prompted the fed to ride to the rescue and do things that its never done such as get into the high yield bond market and rescue companies that have been downgraded which is set off what we call animal spirits the likes of which weve never seen now we have individual that theres this smallest of Retail Investors pumping up things like insolvent companies such as j. C. Penney and hertz that have actually declared bankruptcy filed for chapter 11 and yet investors in general are so convinced that because of the feds extraordinary actions to contain the al fall of the credit market of the credit bubble bursting that the fed no matter what happens is going to have their back with i mean thats like the fed choosing winners i mean is that really help b. For the economy because it again thats kind of an evolution i mean thats a choice its not really Market Forces as were always told to worship here i find that really quite bewildering and what is the doing if youre buying Corporate Bonds i mean this is this is its not creating an even Playing Field how do you explain what the current one. What the fed is doing right now is credit allocation but what the end result is is the likes of price distortion the likes of which weve never seen it is almost impossible whether youre investing in a bond or a stock right now to say what its inherent underlying value is youve got 40 percent for example of the standard and poors 500. 00 its hold guidance all Earnings Guidance for the year so if youre talking about the most traditional valuation metric the price to earnings ratio its kind of undefined right now is so i mean were an absolutely extraordinary times and yet we have the markets at all time highs that is what that policy is creating and the irony is that you know corporations have tacked on an additional trillion dollars of debt in very short order and this is just going to make them that much weaker than they were coming into the year if we dont have a true the shaped recovery and i mean full the shaped recovery this is going to leave that sector that much weaker and more issue one of the things thats coming to my mind one thing of the Financial Reporting is that its almost is if half the economy isnt necessary anywhere wrap the people in the economy for it to continue to move forward i find that really quite bewildering because again if you look at you know a lot of Financial News you know people are upbeat you know and of course you know you know. These major corporations that were bailed out 1st you know house theyre oxo i mean its like someone said to me rather just heard you think theyre back in the shower drinking wine the good part of the country doesnt feel that i mean if you have even more beer on the street i think thats right and to your point about the fed so i think the winners and losers i dont even think its winners and losers i think the fed is its whether youre politically well connected to the extent of the bailouts really have its a is a function of how well established craigs is doing. Banking relationships where which is why the programs like p. P. P. Have not worked out well because theyre a Small Business that employs say 15 people youre not going to have the same kind of relationships with with j. P. Morgan as a large Multinational Corporation will not that and thats no fault of. The banks percent i mean thats understandable but to your other point i mean i think been a long standing problem weve had a serious deterioration in the open all of who have jobs even as we were coming to full employment and i think thats been a longstanding problem its been brutally exposed the underlying. About it call me for a long period of time and as you point out this post Pandemic Response has actually exacerbated the problem its we instead of fixing it weve actually made it worse you know then you know its you know when people talk about a recovery i think its more germane to say recovery for home i mean thats really the question we have to ask because i think i know its easily politicized im not im im deeply conservative person and i can easily politicize it myself but you know the the issue is here is that we need to have a recovery it are the right people to be on the on the receiving end. And thats exactly right you know right now the narrative in the media is that Everything Associated with any of the pain of the corona crisis is temporary in nature there will be no hermant the consequences of what were seeing right now and yet we know that Small Businesses as they look to reopen. And for a generation now weve had Small Businesses focused on an unvaried a low price labor at the expense of Capital Expenditures now and in a world where so many consumers are going to be going to headings idea about social distancing now youre going to have an opposite trend of Small Businesses looking to invest in Capital Expenditures and automate to a aster extent and they have kind of like the medium and Large Sized Companies in america have already certainly started that process but youre going to actually have even the Small Businesses that employ 47 percent of americans prior to the current of the current of our Virus Outbreak youre going to have an even smaller segment of the population that is brought into and under the Small Business umbrella and which is a a made Huge Foundation and source of innovation and entrepreneurship that is traditionally been a job creation engine so im truly concerned about what the aftermath of this is going to look like you know martially with with the jobs report that we got last week when were inside is that the economy what sectors of the economy you think that these jobs came from because again there was a lot of people have occasion about these numbers and i i kind of think that was politically influence but i mean they gave economy small d businesses which trying to Small Businesses or is it like this amazon just got another 100000 well to your point about the problems with the numbers themselves. Part of the difficulty ironically is the that we have these new programs like the government. Programs whereby funding was extended to companies who kept on their payroll or sustain their payroll who duration of the crisis so when they they were in this anomalous position of being paid but they werent doing anything and the. The b. L. S. At the end of its report indicated that these people were counted as employed of though they are the facto unemployed so and if you actually made adjustments havent you had a 16 percent Unemployment Rate so so i but look even if we look at 13 percent thats still one of the highest numbers weve had since the Great Depression bit the growth came in a lot of instances simply from reopening the economy so that you know even if its 50 percent you know youre hiring back some steps a work at restaurants again or other services that have been closed down i mean i am in new york and most of the economy still shut down here in new york city but in other places its comparatively open so so clearly theres an impact map you have to ask yourself whether a lot of these Industries Like retail leisure restaurants are ever going to recover from the prepared democrat levels at least for several years to come i mean youre restaurants will be operating at 50 percent capacity as an example could be considered are you making any money i mean i know 1. 00 people work in the Restaurant Business when they have 100 percent capacity to make their job no thats right thats right i mean if i mean as i said in new york theres a ton of small restaurants newspaper high rents theyre not going to be able to make it and and thats not unique or on the company and of course some you know were doing this on zoom lots of teleconferencing in telecommuting mean done zoom so that means less and less travel less airplanes boeing was having problems even before this latest crisis theyll probably make it as a sub. Contract at the pentagon but theres a 1000000000 business could go straight down the tube so there is there are some real problems going in regard to hysteresis you know any bailing out an airline somebody that doesnt make good airlines in america really who really we really im going to were going to go to a short break let your break you were discussion on the recovery stage. International memorial awards has extended its deadline for submissions. Media professionals are eligible whether you are a freelance journalist work for alternative media or a part of a global News Platform you can submit to your published works in either video format go to award dot com and it a no. But not so you know. The meeting was happening today they can put us in the mood and at that point put up a small salute bush at the capital clinton that at the day i. Knew they say yes. Yes. Well the match across up were all things are considered im Peter Lavelle to remind you were discussing the state of the economy. And then youll excuse me go to lets talk about what the government is doing and not doing you know you can call it a bailout you can call a stimulus package we can talk about the timing of it all. What is. Stopped the free fall was that basically meaningless because they were bailing out people that have more money than god anyway and using that tax code i mean thats thats thats fine when you have high employment you can redistribute wealth only have so many people unemployed theyre not paying payroll at all and we can talk about the derivative issue of health care if you dont have a job has the government done the right thing for the working people of america im not talking about the rich working people go well you know its interesting you raise that issue because Consumer Confidence among the lowest quintile and the 2nd to lowest quintile has recovered at the fastest pace in fact were seeing Consumer Confidence among those who may. Between 7599000. 00 a year continue to slump as layoffs begin to move into white Collar Industries my greatest concern about giving the lowest income earners and an additional 600. 00 a month out to the end of july and well see if that is extended or not. Is that its provided a false sense of security to an income cohort that will then be at the end of this stimulus period still facing the same traumatic financial consequences as they faced before and i refer to cop cars being repossessed or rental evictions and in fact youve seen more reticence just in the last few days among potential car buyers and one of their chief concerns is that there is going to be an expiration of the moratorium on rental evictions so the question is have you have you just bought a little bit of time while demand a structure is occurring in the background such that youre not just going to have people and why call a positions but also people at the lowest income runs out of work and will there be the political wherewith all to address what really needs to be addressed which is figuring out a way to secure jobs as opposed to keeping people on effective universal basic income which has which is really what has been created by congress and has resulted in a disproportionate number of you of u. S. Workers being called back to work and saying no im collecting a lot more right now than i was before so the incentive system is just all catty wankers to use a very technical term and i worry about whats going to happen on the other side of this because the fate of so many millions of americans rests in congress right now yeah and. Those funds that were sent out i would have no match in the great deal of it is just to pay off debts to if thats what people are using the money for it because they dont know i mean dont worry if you know if theres light at the end of the tunnel its really going to be another train coming in their direction i think thats really the analogy here marcia what do you think of how the government is responding to this because i must say this problem moralistic point of view you know they kind of wipe their hands theyve been on big. Ation you know i mean there are tens of millions of the emergencies out there in the country people losing their jobs. You know and im a you know as a conservative. I dont you know my 1st reaction is limited government i dont like people becoming dependent on the government i think that anything that the government should do should keep Families Together in people and work and then thats the positive derivative but in an emergency in the blocks want to bend like this i think that you know if you cant use the argument we dont have any money we have plenty of money for their friends and their special interests here but in the end you brings up this really important issue is that you know how much is how the people good and creating or creating relief but without creating dependency because there is that issue people say why should we go back to that im getting a check i know we. Are short answer to that is that you know come july 1st for now those checks wont be coming anymore which does raise the problem that. Brought up and what happens in the afterwards if there is not a job to go back to look its its an unusual situation because you effectively have created its been the government that has created this mass unemployment in order to deal with a public pandemic. They have put the economy into a deep freeze coma and to you we can i dont want to discuss whether that was the right of the wrong thing to do in terms of locked in but the fact is you knew it instantaneously created mass unemployment but if you want to sustain Political Support for those relief efforts then youve got to make sure that you do it properly and i think the europeans have done a better job of that than than we have in the sense that many of them have just gone straight to a a nationalized payroll and that to me that wouldve been a more desirable way to go because youre its less politicized you all you dont have to create a whole bunch of new bureaucracy to do it you you have the the. Data within the the. The i. R. S. For exactly its easy its easy enough to to get those checks to those people from existing base but if you think payroll and it would have taken out a lot of the government discretion and a lot of the political problems that you that youve raised so denmark norway did that even the conservative government of johnson says the tories covered about 80 percent of salaries up