THIS SLIGHT DELAY WHEN WE ARE BROADCASTING FROM ALL OVER
DIFFERENT POINTS OF THE COMPASS.
LET ME START WITH THIS.
THE TALKING POINT THIS MORNING,
THE MAIN TALKING POINT THAT I’M
HEARING IS THIS POSSIBLE EARLY
RETURN TO WORK.
THE PRESIDENT IS SAYING LOOK, WE
CAN’T LET THE CURE BE WORSE THAN
THE PROBLEM ITSELF.
CAN YOU UPDATE US ON THIS?
WHAT’S GOING ON?
>> FIRST, I CAN REAFFIRM IT.
HE HAS SAID IT.
I SPOKE TO HIM I GUESS SUNDAY
EVENING
EVENING EVENING, HAD MORE CONVERSATIONS
YESTERDAY.
YESTERDAY. IT’S GOING TO BE A QUESTION OF
BALANCE AND TRADE-OFFS.
I DON’T WANT TO GET SPECIFIC ON
DETAILS BECAUSE THEY HAVEN’T
BEEN MAPPED OUT BUT THERE’S NO
QUESTION WE HAVE TO THINK
SERIOUSLY, I WOULD SAY AFTER THE
15-DAY PERIOD IS OVER, WHICH I
GUESS ENDS AT THE END OF THIS
WEEK OR THE WEEKEND, WE WILL
TAKE ANOTHER LOOK AT THE
POSSIBILITY OF TARGETING AREAS
THAT ARE SAFE ENOUGH.
WE HAVE TO DO THIS WITH THE
ASSENT AND HELP OF THE HEALTH
SPECIALISTS.
SPECIALISTS. NO QUESTION ABOUT THAT.
IT’S JUST A MATTER OF WHERE IT’S
POSSIBLE TO OPEN PLACES THAT ARE
NOT HOT ZONES, FOR EXAMPLE, IN
ORDER TO TRY TO EXPAND THE
BUSINESS REACH AND REDUCE THE
SHUT-IN THAT’S TAKEN OVER THE
ECONOMY.
ECONOMY. LOOK, A BAD ECONOMY, IF IT
CONTINUES AND CONTINUES TO
DECLINE, IS UNHEALTHY BY ITSELF.
SO THAT’S AN IMPORTANT POINT.
NOW, HAVING SAID ALL THAT, I DO
WANT TO GO BACK TO THE ISSUE OF
THE NEED FOR SENATE AND HOUSE
VOTES TODAY, THE SENATE VOTE
TODAY.
TODAY. THIS IS THE LARGEST MAIN STREET,
I EMPHASIZE MAIN STREET, THIS IS
SMALL BUSINESSES, THIS IS
WORKERS, THIS IS FAMILIES, THIS
IS THE LARGEST MAIN STREET
ASSISTANCE PACKAGE IN THE
HISTORY OF THE COUNTRY.
IT’S ABOUT $2 TRILLION IN TERMS
OF DIRECT PROGRAMATIC
ASSISTANCE, FOR EXAMPLE, ON
UNEMPLOYMENT AND PAYROLL
HOLIDAYS AND SMALL BUSINESS LOAN
GUARANTEES, BUT ALSO, AS YOU MAY
KNOW, THE FEDERAL RESERVE WILL
HAVE THE POWER OF ROUGHLY $4
TRILLION OF LENDING AUTHORITY.
STU, THAT’S A $6 TRILLION
PACKAGE, ABOUT 30% OF GDP IS
WHAT IT COULD COME TO.
SO YOU KNOW, IF YOU’RE A
BUSINESS AND YOU ARE OPEN
BEGINNING OF THE YEAR, SMALL
BUSINESS, WE WANT YOU TO STAY
OPEN IN JULY.
THAT’S VERY IMPORTANT.
WE WANT TO HELP THE WORK FORCE
BUT YOU CAN’T HAVE A JOB WITHOUT
A HEALTHY BUSINESS.
THIS PACKAGE IS LOADED WITH BOTH
AND IT WOULD GO A LONG WAY, SO
IT HELPS US AS WE MOVE PERHAPS,
I SAY PERHAPS, TO A DIFFERENT
PHASE WHERE WE WILL SEEK SOME
GREATER BALANCE AND PERHAPS
REOPEN ECONOMY IN A NUMBER OF
PLACES THAT HAVE BEEN SHUT IN.
STUART: WE HEARD REPORTS FROM
MR. BULLARD, FED GOVERNOR, WE
WILL HAVE 30% UNEMPLOYMENT RATE
IN THE SECOND QUARTER.
GDP WILL PLUNGE BY 50% IN THE
SECOND QUARTER.
SECOND QUARTER. WAS IT THAT KIND OF FORECAST,
THAT KIND OF DRACONIAN, HORRIBLE
IMPACT FORECAST, THAT PUSHED YOU
INTO THINKING MAYBE WE HAD
BETTER GET PEOPLE BACK TO WORK
SOON?
SOON? >> WELL, LOOK, JIM BULLARD IS AN
AWFULLY SMART GUY AND HE’S A
FRIEND SO I HAVE GREAT RESPECT
FOR HIM.
FOR HIM. NUMBERS ARE NUMBERS AT THIS
STAGE OF THE GAME.
WE ALL KNOW THE ENORMOUS
CHALLENGE AND RISKS THAT LIE
RIGHT BEFORE US.
WE ACTUALLY STARTED THIS
CONVERSATION BEFORE THAT.
A LOT OF PEOPLE IN BUSINESS AND
FINANCE, LOT OF SMALL BUSINESS
PEOPLE, TOO, THAT’S VERY
IMPORTANT, HAVE CALLED US AND
TALKED TO US TO SEE IF WE COULD
LIBERALIZE, IF YOU WILL, AND
PERHAPS TARGET MORE AND STOP AS
MANY SHUTDOWNS WE HAVE.
THAT DOESN’T MEAN WE’RE NOT
GOING TO LEAVE SOCIAL
DISTANCING, DOESN’T MEAN WE ARE
GOING TO WALK AWAY FROM THE
MITIGATING ADVICE WE HAVE
RECEIVED FROM OUR HEALTH
SPECIALISTS AND SO FORTH.
IT JUST MEANS WE WILL TAKE A
SLIGHTLY DIFFERENT LOOK AT THIS.
I THINK THE PRESIDENT WOULD LIKE
TO DO SOMETHING IN THE NEXT
COUPLE OF WEEKS.
AGAIN, THERE’S NOTHING SPECIFIC
BUT THIS FINANCIAL ASSISTANCE
PACKAGE, THIS MAIN STREET
FINANCIAL ASSISTANCE PACKAGE, IS
ABSOLUTELY ESSENTIAL FOR THE
REOPENING OF THE ECONOMY,
BECAUSE WE KNOW SMALL BUSINESSES
HAVE BEEN SHUT IN, WE KNOW THAT
A LOT OF WORKERS ARE EITHER
FURLOUGHED OR LAID OFF.
WE WANT TO GIVE THEM 100%
UNEMPLOYMENT INSURANCE, WE WANT
TO GIVE THEM DIRECT DEPOSIT
CHECKS TO TIDE THEM OVER AND
PROVIDE SUFFICIENT LIQUIDITY.
WE WANT TO PROVIDE LOAN
GUARANTEES IN SO MANY DIFFERENT
PLACES, WANT TO DEAL WITH
DISTRESSED INDUSTRIES AND SO
FORTH AND SO ON.
SO HERE WE ARE WITH A $6
TRILLION PACKAGE AND WE MAY BE
TAKING A NEW LOOK AT THE
SHUT-INS AROUND THE COUNTRY.
BUT LET’S GET THIS THING PASSED.
LET’S JUST GET THIS BILL PASSED.
IT’S SO IMPORTANT.
I THINK IT WILL PROVIDE SOME
CONFIDENCE.
CONFIDENCE. HATS OFF TO THE FED AS WELL AS
THE LEGISLATORS UP ON THE HILL.
STUART: SO GET THE $6 TRILLION
DEAL IN PLACE BUT THERE’S TALK
ABOUT ANOTHER DEAL, ANOTHER
PACKAGE DOWN THE PIKE.
WHAT WOULD THAT LOOK LIKE?
WHAT WOULD THAT ENTAIL?
HAVE YOU ANY IDEA?
>> YEAH, MY VISION, I DON’T HAVE
ANY VISION FOR IT.
I CAN’T SEE IT.
IT’S NOT COMING INTO FOCUS YET.
I WANT TO FOCUS RIGHT NOW ON THE
HERE AND NOW.
LET’S STOP, YOU KNOW,
DILLY-DALLYING AROUND.
DILLY-DALLYING AROUND. OUR FRIENDS ON THE OTHER SIDE OF
THE AISLE, SOME OF THEIR ASKS
DON’T HAVE ANYTHING TO DO WITH
THE VIRUS.
THE VIRUS. I DON’T WANT TO BLAME ANYBODY.
I JUST WANT TO GET THE PACKAGE
DONE.
DONE. WE ARE VERY VERY CLOSE.
I SPOKE TO SECRETARY MNUCHIN
THIS MORNING.
THIS MORNING. WE ARE VERY VERY CLOSE.
LET’S JUST GET THAT VOTE DONE
AND LET’S MOVE FORWARD.
JUST TO REVIEW, IT’S WORTH
REVIEWING, THE FED IS WORKING
VERY CLOSELY WITH THE TREASURY.
WE WANT TO EXPAND THE EXCHANGE
STABILIZATION FUND WHICH IS THE
EQUITY PIECE THAT PROVIDES THE
FED LEVERAGE UNDER SECTION 313
OF THE FEDERAL RESERVE ACT.
YOU GO DOWN THE LIST, YOU
PROBABLY HAVE, STU, BUT THEY ARE
LOOKING AT STUDENT LOANS, AUTO
LOANS, CREDIT CARD LOANS, SBA
LOANS, MONEY MARKET LOANS,
COMMERCIAL PAPER LOANS,
BOLSTERING THE CORPORATE BOND
MARKET, BUYING GOVERNMENT
SECURITIES, BUYING
SECURITIES, BUYING MORTGAGE-BACKED, PROVIDING
MORTGAGE-BACKED, PROVIDING SUFFICIENT LIQUIDITY TO SETTLE
DOWN THESE FINANCIAL MARKETS.
NOW, IN ORDER FOR THE FED TO GET
ALL THAT DONE, WE NEED TO PASS
THIS PHASE THREE BILL BECAUSE OF
THE IMPORTANCE OF THE EXCHANGE
STABILIZATION FUND.
STABILIZATION FUND. I’M NOT SURE FOLKS UNDERSTAND
THAT.
THAT. MOREOVER, WE HAVE MADE
COMPROMISE WITH THE DEMOCRATS ON
THE, FOR EXAMPLE, UNEMPLOYMENT
INSURANCE, BASICALLY NOW 100% OF
WAGES.
WAGES. EARLIER, WE GOT THROUGH THE SICK
PAID LEAVE ISSUES FOR FAMILIES,
PEOPLE WHO ARE SICK OR SPOUSES
OR FAMILIES OR KIDS, WE GOT
THROUGH THAT.
THROUGH THAT. WE HAVE ALSO FOCUSED ON
VIRTUALLY THE ENTIRE WORK FORCE
WITH RESPECT TO DIRECT DIAL
CHECKS COMING FROM THE IRS.
WE’VE GOT A BUSINESS PAYROLL TAX
HOLIDAY, WE’VE GOT A STUDENT
LOAN PAYMENT HOLIDAY, WE’VE GOT
A TAX HOLIDAY COMING UP FOR
SEVERAL MONTHS.
SEVERAL MONTHS. THESE ARE REALLY ESSENTIAL.
THIS WHOLE PACKAGE GOES
TOGETHER.
TOGETHER. TREASURY, FEDERAL RESERVE,
CONGRESS, THE ADMINISTRATION, WE
ARE ALL GOING TO STAND BEHIND A
LOT OF THESE LOANS, SOME OF THEM
WILL BE FORGIVEN AND SO FORTH.
YOU HAVE PROBABLY GONE THROUGH
THESE DETAILS.
THESE DETAILS. BUT BEFORE I LOOK DOWN THE ROAD
TO ANOTHER ONE, LET’S GET THIS
ONE DONE.
ONE DONE. THAT’S THE IMPORTANT THING, I
THINK, IN TERMS OF TODAY’S
ACTIVITY.
ACTIVITY. STUART: TREASURY SECRETARY
MNUCHIN HAS, WE ARE TOLD, AGREED
TO OVERSIGHT OF CORPORATIONS.
DO YOU KNOW WHAT THAT MEANS,
WHAT KIND OF OVERSIGHT?
I PRESUME DOES IT MEAN AN
OWNERSHIP STAKE IN AN AIRLINE OR
A BOEING?
A BOEING? WHAT DOES IT MEAN?
>> WELL, COUPLE THINGS ON THIS.
I CAN’T GO INTO DEEP DETAILS ON
THIS, BUT THERE’S ALWAYS
OVERSIGHT, WHETHER WE GO BACK TO
2008 OR WHETHER WE GO BACK TO
9/11.
9/11. ANY TIME THESE GOVERNMENT
PROGRAMS KICK IN WITH ASSISTANCE
TO COMPANIES, THERE IS
TRANSPARENCY, THERE IS
OVERSIGHT, ALWAYS.
OVERSIGHT, ALWAYS. WITH RESPECT TO TAKING AN EQUITY
POSITION, ONE OF THE OPTIONS
HERE IS TO HAVE TAXPAYERS TAKE A
POSITION MAYBE THROUGH WARRANTS,
SOME OF THESE LARGER PUBLIC
COMPANIES.
COMPANIES. CERTAINLY WE WORRY ABOUT THE
AIRLINE BUSINESS.
AIRLINE BUSINESS. YOU CAN’T HAVE AN ECONOMY
WITHOUT AIRLINES.
WITHOUT AIRLINES. SO THOSE THINGS ALL GO IN PLACE.
THE IDEA OF SOME KIND OF SLUSH
FUND IS SIMPLY NOT THE CASE.
THE ESF IS ESSENTIAL AND THE
FEDERAL RESERVE HAS ALWAYS BEEN
OPEN AND TRANSPARENT ON THIS AND
SO HAS THE TREASURY AND THERE’S
ALWAYS BEEN CONDITIONALITY
IMPOSED.
IMPOSED. I’M GOING TO WAIT IN TERMS OF
THE DETAILS ON THE
CONDITIONALITY.
CONDITIONALITY. THIS IS ABOVE-BOARD, EVERYONE
WILL GET A CHANCE TO SEE IT,
NOTHING’S GOING TO BE HIDDEN AND
WE ARE JUST TRYING TO GET THE
BASIC ESSENTIALS OF THE ECONOMY.
JUST LET ME REPEAT, THIS IS THE
BIGGEST MAIN STREET FINANCIAL
PACKAGE IN U.S. HISTORY AND
AGAIN, WITH REGARD TO PAYROLLS,
KEEPING PAYROLLS GOING AND
KEEPING THE SMALL BUSINESS
GOING, IF YOU ARE IN BUSINESS
BEGINNING OF THE YEAR, WE WANT
YOU TO BE IN BUSINESS WHEN
HOPEFULLY, PRAYERFULLY, THIS
PANDEMIC IN THE U.S. WILL CALM
DOWN OR LEAVE US.
I THINK IT’S A MATTER OF WEEKS
AND MONTHS.
AND MONTHS. PRAYERFULLY, THAT IS THE CASE.
AND WE WANT TO KEEP PEOPLE GOING
WITH ENOUGH LIQUIDITY AND ENOUGH
CASH SO THEY CAN GET THROUGH
THIS, AND THEN BECAUSE WE HAD A
STRONG ECONOMY IN THE FIRST
PLACE, JANUARY AND FEBRUARY IT
WAS GROWING 3%, BECAUSE WE HAVE
HAD PRO-GROWTH POLICIES ON TAXES
AND REGULATIONS AND TRADE
REFORM, I BELIEVE AGAIN,
PRAYERFULLY WHEN THIS VIRUS
THING SETTLES DOWN, THAT WE CAN
HAVE A SNAP-BACK IN THE ECONOMY,
WE CAN GET A V-SHAPED RECOVERY.
THAT’S THE KEY POINT SO WE DON’T
SUFFER LONG TERM.
THIS IS NOT ABOUT YEARS.
THIS IS ABOUT WEEKS AND MONTHS.
STUART: HOW WILL -- OKAY.
IF WE GET A SNAP-BACK, A NICE
SOLID REBOUND AT THE END OF
THIS, WHAT WOULD THE ECONOMY
LOOK LIKE?
LOOK LIKE? WHAT WOULD BE THE DIFFERENCES
FROM, SAY, THE WAY IT WAS FOUR
WEEKS AGO?
WEEKS AGO? >> WELL, I’M NOT SURE WHAT YOU
ARE THINKING ABOUT HERE.
STUART: WELL, BUSINESS TRAVEL,
FOR EXAMPLE.
FOR EXAMPLE. ONLINE LEARNING.
ONLINE LEARNING. TRAVEL, LEISURE.
TRAVEL, LEISURE. IS THAT GOING TO BOUNCE BACK THE
WAY IT WAS?
>> IT COULD, STU.
I THINK ONCE CONFIDENCE RETURNS,
THAT MAY NOT HAPPEN ALL AT ONCE.
I’M THINKING MORE OF BASIC
MANUFACTURING
MANUFACTURING MANUFACTURING.
MANUFACTURING. HEALTH CARE IS THE MOST
BRILLIANT INDUSTRY IN THIS
COUNTRY AND WHAT PRESIDENT TRUMP
HAS DONE WITH THE HELP OF HIS
ADVISERS AND THE HELP OF THE
PRIVATE SECTOR -- LET ME MAKE
JUST A POINT HERE.
ONE OF THE INNOVATIONS THE
PRESIDENT HAS DONE IS BROUGHT IN
THE PRIVATE SECTOR.
THEY ARE WORKING WITH US WITH
RESPECT TO VACCINES, WITH
RESPECT TO THERAPIES AND
MEDICINES, WITH RESPECT TO THE
DISTRIBUTION OF KEY MEDICAL
SUPPLIES, MASKS AND TESTING
UNITS AND SO FORTH.
AMERICA HAS THE GREATEST PRIVATE
SECTOR,
SECTOR, OKAY?
OKAY? WE HAVE PUT THAT TO WORK.
SO, I THINK SOME OF THESE
INDUSTRIES WILL BE EVEN MORE
STREAMLINED.
STREAMLINED. THERE IS NO QUESTION THERE IS
GOING TO BE GREAT CARE AND
CAUTION AS WE MOVE AHEAD.
AS PEOPLE GO BACK TO WORK.
WE GET THEM BACK TO WORK.
THEY GO ABOUT THEIR BUSINESS.
IF THEY’RE HEALTHY HOPE FULLY WE
GET SIGN OFF ON THAT FROM OUR
HEALTH CARE EXPERTS.
MORE EXERCISE OF CAUTION.
IN THAT RESPECT THE COUNTRY WILL
CHANGE BUT LOOK IN FAIRNESS,
NOBODY REALLY, NOBODY REALLY
EXPECTED THIS KIND OF VIRUS
SPREADING AND GOING INTO EVERY
NOOK AND CRANNY OF THE ECONOMY.
THIS WAS SOMETHING NOBODY WAS
ABLE TO FORESEE.
WE’LL NEVER BE QUITE THE SAME.
THERE IS NO REASON WHY ESSENTIAL
INDUSTRIES CAN’T GO BACK TO WORK
RAPIDLY IF WE GET A FLATTENING
OF THE CURVE, IF WE START
OPENING UP SECTORS AGAIN.
YOU KNOW THE MAIN THING HERE, I
COME BACK TO THIS, I HATE TO BE
REDUNDANT.
REDUNDANT. WE JUST GOT TO MAKE SURE OUR
BUSINESSES STAY ALIVE AS MUCH AS
POSSIBLE AND OUR WORKFORCE IS
READY, SO THEY’RE HEALTHY AND
THEY CAN BE ABLE TO SURVIVE,
HAVE THE CASH FLOW TO MEET
FAMILY NEEDS, WHAT NOT IN THE
NEXT FEW WEEKS.
THAT IS REALLY THE KEY POINT.
THEN WE CAN GO BACK INTO OUR
FREE ENTERPRISE ECONOMY WHICH
HAS ALWAYS BEEN THE BEST IN THE
WORLD.
WORLD. WE’RE ON A ROLL A FEW MONTHS
AGO.
AGO. THERE IS NO REASON WHY WE CAN’T
ROLL UP AGAIN.
STUART: LARRY KUDLOW, ALWAYS A
PLEASURE.
PLEASURE. THANK YOU FOR JOINING US ON A