March 13, 2023 • 29 mins
Steve Moore, economist and author of “Trumponomics: Inside the America First Plan to Revive Our Economy” and EJ Antoni, Research Fellow, Regional Economics, Center for Data Analysis break down the state of the economy and our financial markets and the disaster we are facing due to the decisions of the Biden administration.
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Speaker 1 (00:00):
And it's round up information overload our eight hundred and
ninety four one sean if you want to be a
part of the program. So we have the largest bank
collapse since two thousand and eight in this country, sixteenth
largest bank in the country. Then of course we have this,
you know, of this Biden bank run panic going on
(00:20):
around the country. Regulators on Sunday saying that the New
York based Signature Bank is being shut down to protect
consumers and financial systems following the collapse of SVB, the
California Silicon Valley Bank. And you know, go back to
Janet Yellen, what did she say, Oh, that's right, she
said that we're not going to have a bailout of
(00:42):
this Silicon Valley bank. And Joe Biden, in fact, has
gone on record promising that there'll be a full payout
to everybody, regardless of whether you have more than two
hundred and fifty thousand dollars, which is the FDIC insurance limit. Anyway,
here's what Joe Biden said earlier today. And finally, we
(01:03):
must reduce the risk of this happening again. During the
Obama Biden administration, we put in place tough requirements on
banks like Silicon Valley Bank and Signature Bank, including the
Dodd Frank Law to make sure the crisis we saw
in two thousand and eight would not happen again. Unfortunately,
the last administration rolled back some of these requirements. You know,
(01:27):
I noticed that he very very cleverly decided to leave
out the fact that the Dodd Frank Act author in
twenty seventeen, one of them was Barney Frank. And the
same Barney Frank wrote an op ed to CNBC that
he had issues with the reform bill, but he supported
(01:47):
raising the fifty billion dollar asset level at which a
bank becomes subject to the extra supervision of Financial Stability
Oversight Council and lo and behold, what have we learned
that Barney Frank sits on the board of this bank.
I'm sure it's just a mere coincidence that maybe he
(02:08):
himself would benefit from such a thing. But but that's
what's happened. But if you look at every single issue
that has come up by the Biden administration, would be
at the border, be at the Chinese spy balloon, be
at the Russian aggression, immigration inflation, East Palestine, the refugee program,
budget deficits, bank failures. It's always it's always Donald Trump's fault. No,
(02:33):
never Joe Biden's fault. Listen, we must repair the damage
that was done by the last administration, the mismanagement that
was done by the administration. There's a bit of a
different tactic, a bit of a different approach, and that's
probably why President Biden and not his predecessor, was able
to rally the world and the global community and taking
steps against against Russia's aggression. We were able to determine
(02:55):
that China has a high altitude balloon program for intelligence
collection that's connected to the People's Liberation Army. It was
operating during the previous administration, but they did not detect it.
We detected it. We trucked it. The president inherited a
mess because of what the last administration did. They heerded,
We heerded a mess. And you know, Republicans and Congress
(03:19):
made it worse by blocking comprehensive immigration reform, taking lame inflation. No,
why not, because it was already there when I got here.
Man Tragically, former President Trump slashed our international assistants, took Guatemala,
El Salvador and Honduras, slashed the resources that we were
(03:42):
contributing to address the root causes of irregular migration. It's
not that they're talking about Trump. And then he said,
I need your help. How can he help? Well, one
thing you could do is express support for reversing the
deregulation that happened on his watch, resettle thousands of Afghans
who ultimately qualify for refugee status. The United States will
(04:06):
do our part. We are already working closely with refugee
organizations to reach And I can just leave this on
forever and just keep playing it. By the way, you know,
Barney Frank supported this legislative change, which Joe Biden had
over two years to change back if he wanted to.
Never mind the fact that Barney Frank himself, Dodd Frank
himself because he was serving on the board of directors
(04:30):
of Signature Bank, which would no longer be subject to
the regulations that he himself created if the asset threshold
was lowered. Oh, but it's it's it has nothing to
do with again, the dog bites the beast. Things you're
feeling sad, Just blame Trump. Some other notes here. Silicon
Valley Bank CEO happened to sell three point five million
(04:52):
and shares only two weeks before the bank's collapse. Apparently,
the night before the collapse, they had a big party
the Silicon Valley Bank and anyway, they were eating and
partying and have a great time at Perry Steakhouse and
Grill in downtown Austin, a short walk from the convention
center that hosts south By Southwest And anyway, one of
(05:16):
the partner of the defense investment firm, Marquis Ventures City
ordered the house specialty pork chop. I was expecting that SVB,
you know, folks, would address the elephant in the room,
and nobody said a thing about it. And by the way,
I can add to that, Silicon Valley Bank employees received
their annual bonuses Friday, only hours before regulators sees the bank.
(05:40):
How convenient all these things happen at once. Anyway, here
to help sort it out, Steve Moore, economists, author of
the bestseller Trunk trump Anomics, EJ. And Tony is with
US research fellow Regional Economics Center for Data Analysis. All right, Steve,
why didn't give us a broad overview of what we're
witnessing the impact of these two banks? But more importantly,
(06:03):
you know, this is now reverberating worldwide in terms of
economies and what impact that the Biden economic and energy
policies played in this. Well, let me start by saying
that I'm just absolutely fuming by those quotes that you
just played by Biden administration officials and the President himself
always blaming Trump for every catastrophe that's happened in the
(06:25):
two years this man has been president. We didn't have
an out of control of order when Trump was president.
We didn't have an implacent problem when Trump was president.
We didn't have rising interest rates when President and Sean,
we didn't have any bank failures. Do you remember any
bank failures under Donald Trump? Not one? So here he
goes again. Look, this is a result. Let's talk about
why it's happening. And I think the major factor is
(06:48):
something we talked about week after week after week on
your show. Do we have a president who is the
most financially reckless president in American history with six to
seven trillion dollars added to our debt, which is necessed
the Fed to raise interest rates I think eight times,
with a couple more rate hikes to come, and this
has caused chaos in the banking system. So when he's
(07:10):
blaming Trump for things that happened four years ago. This
is a direct result of the higher interest rates, the
higher inflation that Biden took on. And one other quick
point before you turn to EJ, which is that you
look at the budget that Biden came out with last week.
It is an atrocity. If you think we got financial
(07:30):
problems now, if you increase those capital gains taxes, corporate taxes,
small business taxes, it will cause an incredible selloff in
stocks like we've never seen before in history. I agree completely, EJ.
Let's get your overall view of this well, Sean. I
think it's one thing for people in the administration to
say that this is all Trump's fault and that the
(07:52):
president inherited a miss. But let's see what the numbers
actually say. According to the numbers, Biden inherited an economy
that was going at an annualized rate of one and
a half trillion dollars a year. He said, inflation was
already here when I got there, man, it was one
point four percent. Somehow he managed to drive it up
to nine point one percent in a year and a half.
Prices were rising one point three percent in a single month.
(08:15):
That's almost as fast as they did the entire year
before he became president. I mean, the idea that somehow
he inherited all these messes just doesn't stand up to
the facts. And furthermore, the regulations which Trump rolled back,
which Barney Frank apparently signed off on. Those changes. You know,
those changes actually probably would not have impact at Silicon
(08:37):
Valley Bank because they didn't deal with the risk of
the individual bank collapsing so much as they dealt with
the systemic risk that the bank collapsing posed on the
rest of the financial system. In other words, how many
other dominoes would fall if this bank collapsed, And the
answer to that is probably zero. So those regulations probably
(08:57):
wouldn't have done anything anyway. One other thing we learned
is a Silicon Valley Bank committed five billion dollars in
sustainable finance and carbon neutral operations to support a healthier planet.
I'm kind of guessing, Steve that maybe they wish at
this point that they didn't invest that money. By the way,
(09:18):
I would assume Jim Kramer, who urged viewers to buy
Silicon Valley Bank stock last month, well, is he going
to be held responsible for his horrific advice, not that
I would ever pay attention to the thing he says.
Now we're talking about to what extent Steve has the
Biden handling of the inflation that they caused and the
(09:41):
rising interest rates. Now they had they had put a
fortune in ten year treasury notes and that pay very
low yields, not expecting that interest rates would rise as
rapidly as they have now. Some are even predicting that
in spite of what Jerome Powell said last week, we
should expect a a major increase in interest rates, yet
(10:02):
again that this could cause him to maybe even drop
rates as a result because the damage is so great. Yeah,
this puts the FT in a really tough position right now,
because the purpose of the FT is really to hold
inflation down and have a stable dollar. And yet now
they've got this potential financial crisis. And by the way,
I don't think that there's going to be a major
(10:23):
bank run on major banks right now, so I want
people to relax about that. But I do think I
don't know if I don't remember what you played the
clip of Biden saying, don't worry cat payers, this bailout
isn't going to cost you a penny sean, Do you
believe that for one minute, for one second, because then
you'd have to ask the next question, If we're not
going to pay for it, who is? Who is? Exactly? So,
(10:45):
I guarantee you it's gonna be middle class folks. I'm
against bailouts. Look, people who put have these uninsured deposits,
they shouldn't run to the taxpayers for a bailout here,
And you're exactly right. The circles back to the ask
of increase in interest rates again, which was associated with this.
I said so many times in your show, this story
(11:06):
is not going to have a happy ending, a Biden
borrowing trillions and trillions and trillions of dollars his new budget.
And I love the way you explain the show, and
you did it so well in terms of the cost
on investing if under the Biden tax plan. The only
thing that you left out was that you're right, if
you have a capital gain and you haven't taken it,
(11:27):
they're going to tax you. But if you have a
capital loss, they're not going to let you deduct out
from your taxes. How crazy is that? Well, let me
ask you, because we had a caller, a really smart
caller in the last hour, I think from Iowa will
raise the question, Okay, well, what does that mean if
you have a capital gains a capital gain in your property. Now,
(11:47):
I would argue, when you get the final legislation, we've
not seen anything in writing yet that probably people's primary
residents have to be exempt. I've got to imagine that
farmers and ranchers have to be exempt. But what about
people that own a second home. Let's say they own
a second home in Florida that it's doubled in value.
Are they gonna have to kick in fifty one hundred
thousand dollars and unrealized capital gains? Yeah? Where are they
(12:10):
gonna get the money? Remember, they don't have the cash
to pay the tax. Sean think of the ripple effect
now on the housing market again, which is already being
hit hard except for states that have a massive migration
into them. Well, well put in and I mean it
just that feels like we have a president. I have
a piece on box news dot com that has declared
(12:30):
war on American business. Everything he's doing is making American
businesses less competitive. And who is the beneficiary of this
Shan China, Mexico, India, Japan all of our rifles. What
is the answer. How should this be handled? Dj Oh,
It's very simple. The people who took these risks knew
the risks they were taking, and they should bear the
(12:51):
consequences of their actions. Right. If these banks fail, then
they are on the hook for that. There's no reason
why the tax or needs to step in and backstop this.
And you guys are absolutely right. The idea that the
taxpayer is not going to be on the hook for this,
that that's completely laughable. If the FDIC actually had the
(13:11):
money to pay all of these depositors, which is what
the President claims, But if that were true, then the
Federal Reserve would not have needed to set up a
twenty five billion dollars fund overnight in order to backstop it.
They know they don't have the money to pay all
these people. That's why they had to do that. All right,
quick break more of our economist Steve Moore and ej
(13:32):
Antoni straight ahead as we continue. All right, we continue
with economists Steve Moore and economists ej Antoni, both by
the way, with the Heritage Foundation. These are uncharted waters
and we don't know what the end financial fallout is
going to end up being Steve Moore. However, don't most
people that have two hundred and fifty thousand dollars or
(13:53):
way more than that, don't they put two hundred and
twenty five thousand dollars in one bank and another two
and twenty five in a different bank on purpose? Yeah, well,
if they, if they are smart, they'll do that. And people, Look,
if people take these risks, then they should pay the
cost of this. I'm sick and tired of taxpayers, aren't you.
Sewan have always the taxpayers the ones who gets screwed
(14:15):
by these government policies that have gone awry. And here
we go again. You know, we've we've borrowed out. And
by the way, that the banking industry is the most
regulated industry in America, the idea that this would due
to deregulation is just crazy. It's a result of a
government in Washington that is completely out of control. Nobody
(14:35):
knows anything about business in this administration, and they hate business. Frankly,
it's really these are scary times. I don't I don't
know how this is going to end, I really don't.
And the fact that it could end far worse than
we're thinking today scares me? Am I wrong to be scared? Yes?
Or no? Steve, We're not wrong to be afraid. We
should be afraid. E j Yes, Am I wrong? Or right? No? No,
(14:55):
I think you're absolutely right. This is Cylindra on steroids.
That's that's that says it all. Anyway, guys, thank you
both appreciate it. I'm urging all of you out there
talk to people you trust, financial advisors you trust, and
I would do it often eight hundred nine four one
Sean if you want to be a part of the program.
There's certain patterns that always emerge during moments of crisis,
(15:19):
and one of the patterns is the language that is
used by either the media mob or administration or usually
they kind of use the same words because they're in
sync with each other anyway. So for example, Joe Biden said,
our banking system is safe, Joannet Yellen said our banking
system is really safe and resilient, and the head of
(15:41):
the OMB Office of Management Budget, Shalanda Young says our
banking system is resilient and secure. They all say the
same thing. Listen, I'm going to ask Congression and the
banking regulators to strengthen the rules for banks, to make
it less likely this kind of bank failure would happen again,
and to protect American jobs small businesses. Look, the bottom
(16:01):
line is this, Americans can rest assured that our banking
system is safe. Your deposits are safe, so you can
tell the American people this morning. So I think this
has caused a lot of concern that the US banking
system is safe and secure. I think the voice here
is our Treasury Secretary, who is our lead. I'm working
with regulators. That's the appropriate person we should listen to
(16:24):
here and who's tracking this the most closely. But again,
what I will say is after the financial crisis, the
reforms put in place have given regulators more tools and
our system is more resilient, in the foundation stronger because
of it. The American banking system is really safe and
well capitalized. It's resilient. And by the way, after the
(16:48):
announcement of the bailout by Biden earlier today, totally contradicts
Janny Yellen saying the American banking system there is not
going to see a bailout of Silicon Valley Bank. That
was yesterday. Why why be consistent from day to day?
United Kingdom has said that the government there has ruled
out a bailout of the UK arm of Silicon Valley Bank.
(17:12):
Have you also ruled out that kind of government intervention. Well,
let me be clear that during the financial crisis there
were investors and owners of systemic large banks that were
built out, and we're certainly not looking and the reforms
(17:35):
that have been put in place means that we're not
going to do that again. But we are concerned about
depositors and are focused on trying to meet their needs.
All right, let's get to our busy, busy telephones. Oh,
our friend Joe and LJ is there, Joe? How are you?
My friend Sean? You're great your television and radio show,
(17:58):
and everywhere I go pell say they listen to you.
You're the best taxpayer and small business champion in history.
And you're gonna leave the Republicans to a huge win.
And in my opinion, and I don't think we all
to build any banks out with taxpayer money, but I
think when the poles start showing that the Republicans are
gonna win, which I think they'll win big, I think
that will drive up the stock market. So I'm extremely
(18:20):
optimistic and thank God for Sean Hannity, Well, I appreciate
your voter of competence, but you can see what's happening.
We'll up Joe Tacopina, the President's attorney, on tonight. Clearly
they want to go back seven years and find some
what would normally be at best misdemeanor and bring charges
(18:41):
against Donald Trump. I think they want to do it
in Fulton County where you live, in Georgia, and God
only knows you know what other things people have in mind.
I have no idea. So well, that's not what the
mob wants, that's not what politicians and the swamp creatures
want or George Counties that I'm talking to, they're all
fired up about Trump. So you're going to bring us through. Sean,
got total confidence in you. I appreciate your kind words,
(19:05):
Big Joe, Thank you, my friend. Eight hundred nine one, Sean.
If you want to be a part of the program,
let's say hi to Terrell. How are you from Louisiana?
What's up Terrell? Yes, sir, it is Terrell. Mister Hanna Digg,
greetings to you and want to commend you and others
and Fox News and the other people that shall bring
(19:25):
together to bring actual news to the public, so we
can actually see the information that we need to know
about going on here. I had made it clear some
people that I've spoken with before that all these people
who are making genuine attempts to overthrow the American system
with government, that's they're all in sync together. Like you mentioned,
(19:46):
they're all working towards that. What they don't understand is,
and some people call it karma. Some people call it
either heaven or hell. There's a price to be paid
for all these things that they are doing that are
actually criminal in nature and selfish in nature, because they
don't they don't care about other people. They care about
making sure I've got my own I've taken care of myself.
(20:09):
I'm working with other people that are helping me to
do the same thing. And if they get some of
theirs also, as long as we're on the same path
and doing the same thing, which is to subjugate other
people and to make sure that we're taking care of
then I have a problem with that. But they will
pay for it, obviously. We want to see them pay
for it now while they're here on this earth. We
(20:31):
don't want them to continue getting away with what they're
doing that cause us harm to you know, you know,
small income people like myself and other people in other
states around the country. But again I commend you. I
commend the rest of the people at Fox, the people
behind the scenes, people in other news organizations that actually
(20:53):
bring news, real information to us so that we can
actually research and to see it, make sure it's correct
and see what actually is happening. Here's here's my worry
and here's my fear, and I think it's rooted in reality.
Is Look, Democrats now have dominated with their wokeness, if
(21:14):
you will, and the indoctrination of our kids. And it's
been going on for decades. So more and more kids
unfortunately come out of school, they never got the quality
education that they should have gotten, and they end up,
you know, believing in the phony promises, in the false
security of socialism. And there's there's a big part of
(21:35):
the country that actually buys into all of this. And
that's it's bigger than winning in the arena of ideas.
Elections now have changed dramatically how we how we govern
elections in the country. I think France had it right.
You know, they experimented with other systems of voting and
then went back to paper ballots. I think that's something
(21:56):
we all ought to consider doing as well. But in
the meantime, you got to what the system you have.
That's why I'm urging Republicans to get over that reluctance
and resistance about early voting and voting by mail. And secondly,
I'm urging everybody to understand that every state that has
a legal ballot harvesting law that Republicans better match and
(22:19):
hopefully surpass the efforts of Democrats, because that's what they're
focused on. They're not out there saying we've got better
ideas than Republicans. They're they're in the ballot harvesting business,
and they're in the negative ad business. They're not kissing babies,
shaking hands, doing town halls, doing press evels. No, they're
they're hiding most of the time, and that strategy, sadly
(22:39):
is working. So Republicans they've got to catch up and
understand this is the current system as it is, and
then hopefully, when we win enough elections, then we'd be
able to change the system to one that has, in
my view, more integrity and would result in way more
confidence in the results. And that is make voting, make
election day and national holiday in every precinct in the
(23:01):
country of people, observers from every party watching the voting
take place, and then when the when the polls closed,
watch the vote counting take place, and watch a winner
declared right there and then it's really that simple. It's
not that complicated, but they make it complicated. They want
to complicated. That's why they don't want voter ID laws.
That's why they don't want signature verification. That's why they
(23:24):
don't even ever talk about chain of custody controls or
updated voter rolls. There's a reason for it, because they
think it's to their advantage not to have any of that.
But I think it's the most fairy by far. Anyway,
I appreciate the call. Joe is in Florida. Joe, how
are you glad you called? Hey? Sean, Hey, I'm honored
(23:44):
to talk to you today. It's been I've been listening
to you for fifteen years. Probably. I'm from Northport, a
little town called Northport, right up there by you, but
never live down here in Florida. By the way, you
were smart to move, good decision. How long ago did
you move down there? I moved down here thirty years ago,
so it's a lot a lot has changed. Let me
ask let me ask you, good question. What part of
(24:05):
Florida you in? I'm in South Florida, South Florida. Okay,
how did you buy a home when you move down there?
Surely after you? All right, quick question, Just give me
a percentage How much percentage wise has your home value
increased since you moved there thirty years ago. I bought
my house in ninety thousand, and it's worth five hundred
(24:26):
thousand probably. Ah, that's a terrible investment. I'm kidding. That's
a great investment for you, John. I'm happy for you. Yeah, no,
it's it's good. I mean, I feel bad for my
Long Island friends that pay so much in tax for
everybody up there, but that's the way it goes, you know,
Well they stupidly choose to stay. You know, I have
obligations that keep me here. But hopefully that'll come to
(24:47):
an end. Zome. I look at it this way. For
everybody that moves out, somebody's moving in, right, So somebody's
coming in somewhere, so you know, I mean, it's just
a change of hands. And Florida has been great I've
loved it here for thirty years. We have great governor
right now who possibly might run for president. I hope.
I don't know if he will. I don't know if
he won't, but if he does, I give him all
(25:09):
of my support. But my call was basically about frustration
with everything Biden has done since day one. I tragically
I lost my wife during the COVID beginnings. I'm so sorry,
thank you, and she actually passed away the day after
election day, and so I disconnected myself from everything. Prior
(25:32):
to that, I was a very big Trump supporter, and
I still am. But now with the election of Biden,
which again I think was totally stolen. I can't have
proof of that, but I feel that that was stolen.
The way things went, they elected Fetterman all these elections,
I cannot trust any longer. I'm totally frustrated with inflation
(25:54):
since I lost my wife's salary. Now I do have
trouble paying my mortgage and bills, and it's been a
little over two years and I've been just eating away
in my bank account due to Joe Biden's inflation and
everything the Democrats have done to suppress anybody that talks
against them. Our media is totally not you guys, of course,
(26:14):
but our media is totally against us. They're all in
for the Democrats and everything they're selling. I just cannot
put up with this any longer. And that's the reason. Well,
that's why elections matter. Let me let me just let
me just back up one second here. Yes, they didn't.
They used took advantage of COVID states that had very
(26:35):
specific laws that partisan observers watched the vote count that
didn't happen. Constitution of Pennsylvania was completely ignored because it
has very limited specific examples of how people can vote
by mail. Rather than do a constitutional amendment as the
law would require, they pass legislation and not a different
not that big, a different story in Wisconsin. All things
(26:57):
that I talked about. As far as you're struggling a
little bit with your mortgage and your rant, and knowing
a little bit now about the equity in your home,
you might when interest rates are right, consider, and I'm
not a financial advisor, talk to your financial guy or
somebody you trust in finances about maybe taking out a
little bit of a home equity alone, taking a little
(27:18):
equity out of that to take that stress off you
in terms of your monthly mortgage. Just an idea, just
the thought. Okay, yes, sir, we looked into things like that, sure,
but you know that's not really my main concern. I'm
just truly concerned for our country because of my first
vot whatever was Ronald Reagan, and then I became a
Conservative from then on and now I'm not even affiliated
(27:41):
with the party at all. I don't really love the Republicans,
but I cannot stomach the Democrats and everything that they
sell to us. It's just not right. And you can
see it every day. And the things Biden fails to
do in his cabinet and everyone that he's put in
charge of anything, they fail. They're all failures. When Trump
(28:01):
was elected, we had positive, all positive, and he made
us feel positive about our country. We down here in Florida,
you could not go anywhere without seeing Trump flags every place.
And this is why I frustrated about the election. There's
no way that they could have legitimately won this election
away from my eyes from what I saw down here. Okay,
(28:21):
we took a trip tomorrow lago once and it was
just like lines and lines and lines of people. I
hear everything you're saying, just the constraints of time. I'm
running up against the clock here and I could talk
to you all day. Joe, hang in there. We're gonna
fix this, Americans always do. All right, that's gonna wrap
things up today. We've got a great Hannity tonight ninety
(28:42):
eastern on the Fox News Channel. We are going to
break down exactly what is going on and why it happened,
and what the fix really should be with our economic
experts tonight. It's all coming up nine eastern on Hannity
on the Fox News Channel, including Larry Cudd Lowe, including
Charles Painting, Stephen Moore. Then we're going to look into
(29:03):
all of these reports that it looks like New York
wants to indict Donald Trump. Well, Donald Trump's attorney, Joe Takapina,
will join us, the great one Mark Levin, he'll join
us tonight, Oh, weigh in on all of this. And
Congressman Comer has an update on the investigation into the Bidens, which,
of course we know the FBI had Hunter Biden's laptop
(29:24):
since what December twenty nineteen, and they have done since
then next to nothing with it. All right, all that
tonight nineties turned Hannity Fox News, Set your DVR, We'll
see you tonight. Back here tomorrow. Thank you for making
this show possible.
And it's round up information overload our eight hundred and
ninety four one sean if you want to be a
part of the program. So we have the largest bank
collapse since two thousand and eight in this country, sixteenth
largest bank in the country. Then of course we have this,
you know, of this Biden bank run panic going on
(00:20):
around the country. Regulators on Sunday saying that the New
York based Signature Bank is being shut down to protect
consumers and financial systems following the collapse of SVB, the
California Silicon Valley Bank. And you know, go back to
Janet Yellen, what did she say, Oh, that's right, she
said that we're not going to have a bailout of
(00:42):
this Silicon Valley bank. And Joe Biden, in fact, has
gone on record promising that there'll be a full payout
to everybody, regardless of whether you have more than two
hundred and fifty thousand dollars, which is the FDIC insurance limit. Anyway,
here's what Joe Biden said earlier today. And finally, we
(01:03):
must reduce the risk of this happening again. During the
Obama Biden administration, we put in place tough requirements on
banks like Silicon Valley Bank and Signature Bank, including the
Dodd Frank Law to make sure the crisis we saw
in two thousand and eight would not happen again. Unfortunately,
the last administration rolled back some of these requirements. You know,
(01:27):
I noticed that he very very cleverly decided to leave
out the fact that the Dodd Frank Act author in
twenty seventeen, one of them was Barney Frank. And the
same Barney Frank wrote an op ed to CNBC that
he had issues with the reform bill, but he supported
(01:47):
raising the fifty billion dollar asset level at which a
bank becomes subject to the extra supervision of Financial Stability
Oversight Council and lo and behold, what have we learned
that Barney Frank sits on the board of this bank.
I'm sure it's just a mere coincidence that maybe he
(02:08):
himself would benefit from such a thing. But but that's
what's happened. But if you look at every single issue
that has come up by the Biden administration, would be
at the border, be at the Chinese spy balloon, be
at the Russian aggression, immigration inflation, East Palestine, the refugee program,
budget deficits, bank failures. It's always it's always Donald Trump's fault. No,
(02:33):
never Joe Biden's fault. Listen, we must repair the damage
that was done by the last administration, the mismanagement that
was done by the administration. There's a bit of a
different tactic, a bit of a different approach, and that's
probably why President Biden and not his predecessor, was able
to rally the world and the global community and taking
steps against against Russia's aggression. We were able to determine
(02:55):
that China has a high altitude balloon program for intelligence
collection that's connected to the People's Liberation Army. It was
operating during the previous administration, but they did not detect it.
We detected it. We trucked it. The president inherited a
mess because of what the last administration did. They heerded,
We heerded a mess. And you know, Republicans and Congress
(03:19):
made it worse by blocking comprehensive immigration reform, taking lame inflation. No,
why not, because it was already there when I got here.
Man Tragically, former President Trump slashed our international assistants, took Guatemala,
El Salvador and Honduras, slashed the resources that we were
(03:42):
contributing to address the root causes of irregular migration. It's
not that they're talking about Trump. And then he said,
I need your help. How can he help? Well, one
thing you could do is express support for reversing the
deregulation that happened on his watch, resettle thousands of Afghans
who ultimately qualify for refugee status. The United States will
(04:06):
do our part. We are already working closely with refugee
organizations to reach And I can just leave this on
forever and just keep playing it. By the way, you know,
Barney Frank supported this legislative change, which Joe Biden had
over two years to change back if he wanted to.
Never mind the fact that Barney Frank himself, Dodd Frank
himself because he was serving on the board of directors
(04:30):
of Signature Bank, which would no longer be subject to
the regulations that he himself created if the asset threshold
was lowered. Oh, but it's it's it has nothing to
do with again, the dog bites the beast. Things you're
feeling sad, Just blame Trump. Some other notes here. Silicon
Valley Bank CEO happened to sell three point five million
(04:52):
and shares only two weeks before the bank's collapse. Apparently,
the night before the collapse, they had a big party
the Silicon Valley Bank and anyway, they were eating and
partying and have a great time at Perry Steakhouse and
Grill in downtown Austin, a short walk from the convention
center that hosts south By Southwest And anyway, one of
(05:16):
the partner of the defense investment firm, Marquis Ventures City
ordered the house specialty pork chop. I was expecting that SVB,
you know, folks, would address the elephant in the room,
and nobody said a thing about it. And by the way,
I can add to that, Silicon Valley Bank employees received
their annual bonuses Friday, only hours before regulators sees the bank.
(05:40):
How convenient all these things happen at once. Anyway, here
to help sort it out, Steve Moore, economists, author of
the bestseller Trunk trump Anomics, EJ. And Tony is with
US research fellow Regional Economics Center for Data Analysis. All right, Steve,
why didn't give us a broad overview of what we're
witnessing the impact of these two banks? But more importantly,
(06:03):
you know, this is now reverberating worldwide in terms of
economies and what impact that the Biden economic and energy
policies played in this. Well, let me start by saying
that I'm just absolutely fuming by those quotes that you
just played by Biden administration officials and the President himself
always blaming Trump for every catastrophe that's happened in the
(06:25):
two years this man has been president. We didn't have
an out of control of order when Trump was president.
We didn't have an implacent problem when Trump was president.
We didn't have rising interest rates when President and Sean,
we didn't have any bank failures. Do you remember any
bank failures under Donald Trump? Not one? So here he
goes again. Look, this is a result. Let's talk about
why it's happening. And I think the major factor is
(06:48):
something we talked about week after week after week on
your show. Do we have a president who is the
most financially reckless president in American history with six to
seven trillion dollars added to our debt, which is necessed
the Fed to raise interest rates I think eight times,
with a couple more rate hikes to come, and this
has caused chaos in the banking system. So when he's
(07:10):
blaming Trump for things that happened four years ago. This
is a direct result of the higher interest rates, the
higher inflation that Biden took on. And one other quick
point before you turn to EJ, which is that you
look at the budget that Biden came out with last week.
It is an atrocity. If you think we got financial
(07:30):
problems now, if you increase those capital gains taxes, corporate taxes,
small business taxes, it will cause an incredible selloff in
stocks like we've never seen before in history. I agree completely, EJ.
Let's get your overall view of this well, Sean. I
think it's one thing for people in the administration to
say that this is all Trump's fault and that the
(07:52):
president inherited a miss. But let's see what the numbers
actually say. According to the numbers, Biden inherited an economy
that was going at an annualized rate of one and
a half trillion dollars a year. He said, inflation was
already here when I got there, man, it was one
point four percent. Somehow he managed to drive it up
to nine point one percent in a year and a half.
Prices were rising one point three percent in a single month.
(08:15):
That's almost as fast as they did the entire year
before he became president. I mean, the idea that somehow
he inherited all these messes just doesn't stand up to
the facts. And furthermore, the regulations which Trump rolled back,
which Barney Frank apparently signed off on. Those changes. You know,
those changes actually probably would not have impact at Silicon
(08:37):
Valley Bank because they didn't deal with the risk of
the individual bank collapsing so much as they dealt with
the systemic risk that the bank collapsing posed on the
rest of the financial system. In other words, how many
other dominoes would fall if this bank collapsed, And the
answer to that is probably zero. So those regulations probably
(08:57):
wouldn't have done anything anyway. One other thing we learned
is a Silicon Valley Bank committed five billion dollars in
sustainable finance and carbon neutral operations to support a healthier planet.
I'm kind of guessing, Steve that maybe they wish at
this point that they didn't invest that money. By the way,
(09:18):
I would assume Jim Kramer, who urged viewers to buy
Silicon Valley Bank stock last month, well, is he going
to be held responsible for his horrific advice, not that
I would ever pay attention to the thing he says.
Now we're talking about to what extent Steve has the
Biden handling of the inflation that they caused and the
(09:41):
rising interest rates. Now they had they had put a
fortune in ten year treasury notes and that pay very
low yields, not expecting that interest rates would rise as
rapidly as they have now. Some are even predicting that
in spite of what Jerome Powell said last week, we
should expect a a major increase in interest rates, yet
(10:02):
again that this could cause him to maybe even drop
rates as a result because the damage is so great. Yeah,
this puts the FT in a really tough position right now,
because the purpose of the FT is really to hold
inflation down and have a stable dollar. And yet now
they've got this potential financial crisis. And by the way,
I don't think that there's going to be a major
(10:23):
bank run on major banks right now, so I want
people to relax about that. But I do think I
don't know if I don't remember what you played the
clip of Biden saying, don't worry cat payers, this bailout
isn't going to cost you a penny sean, Do you
believe that for one minute, for one second, because then
you'd have to ask the next question, If we're not
going to pay for it, who is? Who is? Exactly? So,
(10:45):
I guarantee you it's gonna be middle class folks. I'm
against bailouts. Look, people who put have these uninsured deposits,
they shouldn't run to the taxpayers for a bailout here,
And you're exactly right. The circles back to the ask
of increase in interest rates again, which was associated with this.
I said so many times in your show, this story
(11:06):
is not going to have a happy ending, a Biden
borrowing trillions and trillions and trillions of dollars his new budget.
And I love the way you explain the show, and
you did it so well in terms of the cost
on investing if under the Biden tax plan. The only
thing that you left out was that you're right, if
you have a capital gain and you haven't taken it,
(11:27):
they're going to tax you. But if you have a
capital loss, they're not going to let you deduct out
from your taxes. How crazy is that? Well, let me
ask you, because we had a caller, a really smart
caller in the last hour, I think from Iowa will
raise the question, Okay, well, what does that mean if
you have a capital gains a capital gain in your property. Now,
(11:47):
I would argue, when you get the final legislation, we've
not seen anything in writing yet that probably people's primary
residents have to be exempt. I've got to imagine that
farmers and ranchers have to be exempt. But what about
people that own a second home. Let's say they own
a second home in Florida that it's doubled in value.
Are they gonna have to kick in fifty one hundred
thousand dollars and unrealized capital gains? Yeah? Where are they
(12:10):
gonna get the money? Remember, they don't have the cash
to pay the tax. Sean think of the ripple effect
now on the housing market again, which is already being
hit hard except for states that have a massive migration
into them. Well, well put in and I mean it
just that feels like we have a president. I have
a piece on box news dot com that has declared
(12:30):
war on American business. Everything he's doing is making American
businesses less competitive. And who is the beneficiary of this
Shan China, Mexico, India, Japan all of our rifles. What
is the answer. How should this be handled? Dj Oh,
It's very simple. The people who took these risks knew
the risks they were taking, and they should bear the
(12:51):
consequences of their actions. Right. If these banks fail, then
they are on the hook for that. There's no reason
why the tax or needs to step in and backstop this.
And you guys are absolutely right. The idea that the
taxpayer is not going to be on the hook for this,
that that's completely laughable. If the FDIC actually had the
(13:11):
money to pay all of these depositors, which is what
the President claims, But if that were true, then the
Federal Reserve would not have needed to set up a
twenty five billion dollars fund overnight in order to backstop it.
They know they don't have the money to pay all
these people. That's why they had to do that. All right,
quick break more of our economist Steve Moore and ej
(13:32):
Antoni straight ahead as we continue. All right, we continue
with economists Steve Moore and economists ej Antoni, both by
the way, with the Heritage Foundation. These are uncharted waters
and we don't know what the end financial fallout is
going to end up being Steve Moore. However, don't most
people that have two hundred and fifty thousand dollars or
(13:53):
way more than that, don't they put two hundred and
twenty five thousand dollars in one bank and another two
and twenty five in a different bank on purpose? Yeah, well,
if they, if they are smart, they'll do that. And people, Look,
if people take these risks, then they should pay the
cost of this. I'm sick and tired of taxpayers, aren't you.
Sewan have always the taxpayers the ones who gets screwed
(14:15):
by these government policies that have gone awry. And here
we go again. You know, we've we've borrowed out. And
by the way, that the banking industry is the most
regulated industry in America, the idea that this would due
to deregulation is just crazy. It's a result of a
government in Washington that is completely out of control. Nobody
(14:35):
knows anything about business in this administration, and they hate business. Frankly,
it's really these are scary times. I don't I don't
know how this is going to end, I really don't.
And the fact that it could end far worse than
we're thinking today scares me? Am I wrong to be scared? Yes?
Or no? Steve, We're not wrong to be afraid. We
should be afraid. E j Yes, Am I wrong? Or right? No? No,
(14:55):
I think you're absolutely right. This is Cylindra on steroids.
That's that's that says it all. Anyway, guys, thank you
both appreciate it. I'm urging all of you out there
talk to people you trust, financial advisors you trust, and
I would do it often eight hundred nine four one
Sean if you want to be a part of the program.
There's certain patterns that always emerge during moments of crisis,
(15:19):
and one of the patterns is the language that is
used by either the media mob or administration or usually
they kind of use the same words because they're in
sync with each other anyway. So for example, Joe Biden said,
our banking system is safe, Joannet Yellen said our banking
system is really safe and resilient, and the head of
(15:41):
the OMB Office of Management Budget, Shalanda Young says our
banking system is resilient and secure. They all say the
same thing. Listen, I'm going to ask Congression and the
banking regulators to strengthen the rules for banks, to make
it less likely this kind of bank failure would happen again,
and to protect American jobs small businesses. Look, the bottom
(16:01):
line is this, Americans can rest assured that our banking
system is safe. Your deposits are safe, so you can
tell the American people this morning. So I think this
has caused a lot of concern that the US banking
system is safe and secure. I think the voice here
is our Treasury Secretary, who is our lead. I'm working
with regulators. That's the appropriate person we should listen to
(16:24):
here and who's tracking this the most closely. But again,
what I will say is after the financial crisis, the
reforms put in place have given regulators more tools and
our system is more resilient, in the foundation stronger because
of it. The American banking system is really safe and
well capitalized. It's resilient. And by the way, after the
(16:48):
announcement of the bailout by Biden earlier today, totally contradicts
Janny Yellen saying the American banking system there is not
going to see a bailout of Silicon Valley Bank. That
was yesterday. Why why be consistent from day to day?
United Kingdom has said that the government there has ruled
out a bailout of the UK arm of Silicon Valley Bank.
(17:12):
Have you also ruled out that kind of government intervention. Well,
let me be clear that during the financial crisis there
were investors and owners of systemic large banks that were
built out, and we're certainly not looking and the reforms
(17:35):
that have been put in place means that we're not
going to do that again. But we are concerned about
depositors and are focused on trying to meet their needs.
All right, let's get to our busy, busy telephones. Oh,
our friend Joe and LJ is there, Joe? How are you?
My friend Sean? You're great your television and radio show,
(17:58):
and everywhere I go pell say they listen to you.
You're the best taxpayer and small business champion in history.
And you're gonna leave the Republicans to a huge win.
And in my opinion, and I don't think we all
to build any banks out with taxpayer money, but I
think when the poles start showing that the Republicans are
gonna win, which I think they'll win big, I think
that will drive up the stock market. So I'm extremely
(18:20):
optimistic and thank God for Sean Hannity, Well, I appreciate
your voter of competence, but you can see what's happening.
We'll up Joe Tacopina, the President's attorney, on tonight. Clearly
they want to go back seven years and find some
what would normally be at best misdemeanor and bring charges
(18:41):
against Donald Trump. I think they want to do it
in Fulton County where you live, in Georgia, and God
only knows you know what other things people have in mind.
I have no idea. So well, that's not what the
mob wants, that's not what politicians and the swamp creatures
want or George Counties that I'm talking to, they're all
fired up about Trump. So you're going to bring us through. Sean,
got total confidence in you. I appreciate your kind words,
(19:05):
Big Joe, Thank you, my friend. Eight hundred nine one, Sean.
If you want to be a part of the program,
let's say hi to Terrell. How are you from Louisiana?
What's up Terrell? Yes, sir, it is Terrell. Mister Hanna Digg,
greetings to you and want to commend you and others
and Fox News and the other people that shall bring
(19:25):
together to bring actual news to the public, so we
can actually see the information that we need to know
about going on here. I had made it clear some
people that I've spoken with before that all these people
who are making genuine attempts to overthrow the American system
with government, that's they're all in sync together. Like you mentioned,
(19:46):
they're all working towards that. What they don't understand is,
and some people call it karma. Some people call it
either heaven or hell. There's a price to be paid
for all these things that they are doing that are
actually criminal in nature and selfish in nature, because they
don't they don't care about other people. They care about
making sure I've got my own I've taken care of myself.
(20:09):
I'm working with other people that are helping me to
do the same thing. And if they get some of
theirs also, as long as we're on the same path
and doing the same thing, which is to subjugate other
people and to make sure that we're taking care of
then I have a problem with that. But they will
pay for it, obviously. We want to see them pay
for it now while they're here on this earth. We
(20:31):
don't want them to continue getting away with what they're
doing that cause us harm to you know, you know,
small income people like myself and other people in other
states around the country. But again I commend you. I
commend the rest of the people at Fox, the people
behind the scenes, people in other news organizations that actually
(20:53):
bring news, real information to us so that we can
actually research and to see it, make sure it's correct
and see what actually is happening. Here's here's my worry
and here's my fear, and I think it's rooted in reality.
Is Look, Democrats now have dominated with their wokeness, if
(21:14):
you will, and the indoctrination of our kids. And it's
been going on for decades. So more and more kids
unfortunately come out of school, they never got the quality
education that they should have gotten, and they end up,
you know, believing in the phony promises, in the false
security of socialism. And there's there's a big part of
(21:35):
the country that actually buys into all of this. And
that's it's bigger than winning in the arena of ideas.
Elections now have changed dramatically how we how we govern
elections in the country. I think France had it right.
You know, they experimented with other systems of voting and
then went back to paper ballots. I think that's something
(21:56):
we all ought to consider doing as well. But in
the meantime, you got to what the system you have.
That's why I'm urging Republicans to get over that reluctance
and resistance about early voting and voting by mail. And secondly,
I'm urging everybody to understand that every state that has
a legal ballot harvesting law that Republicans better match and
(22:19):
hopefully surpass the efforts of Democrats, because that's what they're
focused on. They're not out there saying we've got better
ideas than Republicans. They're they're in the ballot harvesting business,
and they're in the negative ad business. They're not kissing babies,
shaking hands, doing town halls, doing press evels. No, they're
they're hiding most of the time, and that strategy, sadly
(22:39):
is working. So Republicans they've got to catch up and
understand this is the current system as it is, and
then hopefully, when we win enough elections, then we'd be
able to change the system to one that has, in
my view, more integrity and would result in way more
confidence in the results. And that is make voting, make
election day and national holiday in every precinct in the
(23:01):
country of people, observers from every party watching the voting
take place, and then when the when the polls closed,
watch the vote counting take place, and watch a winner
declared right there and then it's really that simple. It's
not that complicated, but they make it complicated. They want
to complicated. That's why they don't want voter ID laws.
That's why they don't want signature verification. That's why they
(23:24):
don't even ever talk about chain of custody controls or
updated voter rolls. There's a reason for it, because they
think it's to their advantage not to have any of that.
But I think it's the most fairy by far. Anyway,
I appreciate the call. Joe is in Florida. Joe, how
are you glad you called? Hey? Sean, Hey, I'm honored
(23:44):
to talk to you today. It's been I've been listening
to you for fifteen years. Probably. I'm from Northport, a
little town called Northport, right up there by you, but
never live down here in Florida. By the way, you
were smart to move, good decision. How long ago did
you move down there? I moved down here thirty years ago,
so it's a lot a lot has changed. Let me
ask let me ask you, good question. What part of
(24:05):
Florida you in? I'm in South Florida, South Florida. Okay,
how did you buy a home when you move down there?
Surely after you? All right, quick question, Just give me
a percentage How much percentage wise has your home value
increased since you moved there thirty years ago. I bought
my house in ninety thousand, and it's worth five hundred
(24:26):
thousand probably. Ah, that's a terrible investment. I'm kidding. That's
a great investment for you, John. I'm happy for you. Yeah, no,
it's it's good. I mean, I feel bad for my
Long Island friends that pay so much in tax for
everybody up there, but that's the way it goes, you know,
Well they stupidly choose to stay. You know, I have
obligations that keep me here. But hopefully that'll come to
(24:47):
an end. Zome. I look at it this way. For
everybody that moves out, somebody's moving in, right, So somebody's
coming in somewhere, so you know, I mean, it's just
a change of hands. And Florida has been great I've
loved it here for thirty years. We have great governor
right now who possibly might run for president. I hope.
I don't know if he will. I don't know if
he won't, but if he does, I give him all
(25:09):
of my support. But my call was basically about frustration
with everything Biden has done since day one. I tragically
I lost my wife during the COVID beginnings. I'm so sorry,
thank you, and she actually passed away the day after
election day, and so I disconnected myself from everything. Prior
(25:32):
to that, I was a very big Trump supporter, and
I still am. But now with the election of Biden,
which again I think was totally stolen. I can't have
proof of that, but I feel that that was stolen.
The way things went, they elected Fetterman all these elections,
I cannot trust any longer. I'm totally frustrated with inflation
(25:54):
since I lost my wife's salary. Now I do have
trouble paying my mortgage and bills, and it's been a
little over two years and I've been just eating away
in my bank account due to Joe Biden's inflation and
everything the Democrats have done to suppress anybody that talks
against them. Our media is totally not you guys, of course,
(26:14):
but our media is totally against us. They're all in
for the Democrats and everything they're selling. I just cannot
put up with this any longer. And that's the reason. Well,
that's why elections matter. Let me let me just let
me just back up one second here. Yes, they didn't.
They used took advantage of COVID states that had very
(26:35):
specific laws that partisan observers watched the vote count that
didn't happen. Constitution of Pennsylvania was completely ignored because it
has very limited specific examples of how people can vote
by mail. Rather than do a constitutional amendment as the
law would require, they pass legislation and not a different
not that big, a different story in Wisconsin. All things
(26:57):
that I talked about. As far as you're struggling a
little bit with your mortgage and your rant, and knowing
a little bit now about the equity in your home,
you might when interest rates are right, consider, and I'm
not a financial advisor, talk to your financial guy or
somebody you trust in finances about maybe taking out a
little bit of a home equity alone, taking a little
(27:18):
equity out of that to take that stress off you
in terms of your monthly mortgage. Just an idea, just
the thought. Okay, yes, sir, we looked into things like that, sure,
but you know that's not really my main concern. I'm
just truly concerned for our country because of my first
vot whatever was Ronald Reagan, and then I became a
Conservative from then on and now I'm not even affiliated
(27:41):
with the party at all. I don't really love the Republicans,
but I cannot stomach the Democrats and everything that they
sell to us. It's just not right. And you can
see it every day. And the things Biden fails to
do in his cabinet and everyone that he's put in
charge of anything, they fail. They're all failures. When Trump
(28:01):
was elected, we had positive, all positive, and he made
us feel positive about our country. We down here in Florida,
you could not go anywhere without seeing Trump flags every place.
And this is why I frustrated about the election. There's
no way that they could have legitimately won this election
away from my eyes from what I saw down here. Okay,
(28:21):
we took a trip tomorrow lago once and it was
just like lines and lines and lines of people. I
hear everything you're saying, just the constraints of time. I'm
running up against the clock here and I could talk
to you all day. Joe, hang in there. We're gonna
fix this, Americans always do. All right, that's gonna wrap
things up today. We've got a great Hannity tonight ninety
(28:42):
eastern on the Fox News Channel. We are going to
break down exactly what is going on and why it happened,
and what the fix really should be with our economic
experts tonight. It's all coming up nine eastern on Hannity
on the Fox News Channel, including Larry Cudd Lowe, including
Charles Painting, Stephen Moore. Then we're going to look into
(29:03):
all of these reports that it looks like New York
wants to indict Donald Trump. Well, Donald Trump's attorney, Joe Takapina,
will join us, the great one Mark Levin, he'll join
us tonight, Oh, weigh in on all of this. And
Congressman Comer has an update on the investigation into the Bidens, which,
of course we know the FBI had Hunter Biden's laptop
(29:24):
since what December twenty nineteen, and they have done since
then next to nothing with it. All right, all that
tonight nineties turned Hannity Fox News, Set your DVR, We'll
see you tonight. Back here tomorrow. Thank you for making
this show possible.
The Sean Hannity Show News
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Sean Hannity
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