amna: This week, government
leaders work to safeguard the
U.S. Banking industry,
u.s.-russia tensions heat up,
and three years after the covid
lockdown, many Americans are
asking, are we better prepared
for the next viral threat?
For analysis, brooks and
Capehart.
That's "New York Times"
columnist David brooks, and
Jonathan Capehart, associate
editor for "The Washington
post."
Welcome to you both.
Let's start with the banking
industry, David, because after
the failure of two U.S. Banks,
we all the administration step
in very quickly.
Assured depositors they would be
made whole.
11 banks have stepped in to
shore up another bank out of San
Francisco.
The anxiety is not gone yet.
David: If you look at Mr. Dow
Jones, very unhappy.
The markets are volatile.
There are two immediate things.
The first is this bank informed
its investment strategy in a low
interest rate environment which
is what we've had for 40 years
in which we no longer have.
A bank that invests a
disproportionate amount of money
and treasury will suffer because
they will not keep up with
inflation.
When you get to a high interest,
things begin to break.
The financial system is breaking
but the other thing that can
break is the budget.
We have borrowed and borrowed
assuming interest rates are low.
They will no longer be low.
Inflation will be here for a
good chunk of a while.
Your payments on the debt become
massive on the federal level.
The second thing is what we have
been so quick to act if this
were called a different bank?
My answer would be no.
The venture capitalists who
invest in this bank, people who
they invested in, put money in
this bank, they created a
narrative that is medium-sized
bank, if it went under, the
whole economy would go under.
Once they created that
narrative, which may not have
been true, more or less, the fed
had to act.
If I were a populist, I would be
jumping all over this thing
because silicon valley bank gets
bailed out, really?
It seems to be tailor-made for
our friend, Donald Trump.
Amna: To that point, the biggest
crisis the administration --
question the initiation has
faced, would you do this for
other banks?
Did they set a bad precedent
here?
Jonathan: We will find out.
If they were named any other
bank, with the government jump
in?
The other problem with silicon
valley bank, it was basically
only a tech center bank.
Its holdings were not
diversified.
You could blame them for not
being prepared for what came.
But, it does raise the question
of whether the administration
would be forced to do it again?
That is something we don't quite
know yet.
We will get a better idea when
the fed meets.
There is a story that came out
just before we came on on CNBC,
that the fed chairman could
possibly raise rates a quarter
of a percentage point.
There are other experts saying
if you do that, you will bring
about a recession.
The one thing I take away from
what happened, what's
happening with these banks,
these are not isolated
incidents.
One thing impacts another.
So, we don't know what's going
to happen really.
Amna: We will have to keep
following it.
Thank you for your insights on
that.
I want to talk about overseas
because it was a big week when
it comes to Russia's war in
Ukraine.
No signs of the war slowing.
There are questions about
possible escalation here.
We saw that video with the
Russian jet that forced down a
U.S. Surveillance grown.
Now,: And Slovakia providing
fighter jets to Ukraine.
Amidst all of this, you have GOP
candidates and other Republicans
openly saying this is not our
fight, we should not be
involved.
Ron Desantis had this to say.
"While the U.S. Has many vital
national interests, becoming
further entangled in a
territorial dispute between
Ukraine and Russia is not one of
them."
David, that is one of the
leading candidates for
Republican nomination for
president.
Is that where Republican foreign
policy is headed?
David: Half of it.
It has become a marker of are
you a populist or conservative?
I would say to Ron Desantis, we
are spending tens of billions of
dollars.
We have already destroyed half
the Russian military.
What could be a better
investment than that?
It seems to me a crazy policy.
While Donald Trump and Ron
Desantis and some of the
populists at places like the
claremont institute, they are on
that side, they don't have much
power.
If you look at the Republicans
who have power, the minority
leader office of the U.S.
Senate, the intelligence
committee, those Republicans are
saying they are not doing it
hard enough.
I have been doing -- a L ot of
conservatives in congress, they
really run the foreign policy
world of the Republican party.
They're quite aggressive.
We need to stick up for
zelenskyy, Ukraine needs to win
this war.
Their resolve is increasing.
Amna: How do you see it?
Jonathan: That is great news to
hear.
This ratcheting up of the
rhetoric among Republicans,
particularly governor Desantis,
is very concerning because there
cannot be any daylight between
America's resolve, America's
commitment to Ukraine and
offending Ukraine.
I have set it at this table many
times.
The president says that all the
time.
This is a battle between
democracy and autocracy.
Democracy must win.
The fact the more traditional
conservatives are fullbore
behind Ukraine in congress is
the best news I have heard.
Amna: Is that true also in the
house?
You saw the deals that Kevin
Mccarthy had to cut.
Go ahead.
>> It is the same deal.
You've got people who are really
involved in foreign policy by
and large saying we need more.
You look at the presidential
campaign -- Mike pence, we need
to be more aggressive.
Nikki Haley, we need to be more
aggressive.
A lot of people were
uninfluenced by the Reagan era.
The second thing that has
happened here across the party,
the populists are saying we
cannot worry about Russia, we
need to worry about China.
I think the Republican party as
a whole has leapt into a Chinese
cold war may too fast.
You can say we were a little too
innocent about where China was
headed 10 years ago.
We may be a little too warrior
like in dealing with China now.
Our relationship with China is
so complicated.
The ultra cold war posture we
are dealing with China may be a
little too simplistic.
Amna: I want to note this week,
three years ago was when the
covid lockdowns began.
The appropriate sigh and eye
roll.
It is hard to believe that is
when all the hand sanitizing,
caloric swiping everything down
-- we thought we might be home a
few weeks.
Crazy to think back.
Jonathan, we are a different
country today than we were three
years ago.
How have we changed?
Jonathan: I think we have
changed a lot.
The one thing about isolation
when we all had to not just wipe
down everything, but stay home
and stay away from our loved
ones, is that it was a moment of
self reflection.
I think a lot of people have
decided there are things about
the before times that they
didn't like.
Things about their jobs they
didn't like.
Things about their lives they
didn't like and that they wanted
to change.
That if we got out of this, if
we got back to normal, we would
change.
Just look at where we are.
Folks are talking about four day
work weeks, three day work
weeks.
People are leaving professions
they were in because they
realized I didn't like the way I
was treated or how hard I had to
work just to get by.
I will go someplace else where I
am treated well, I am respected,
my wages are higher and I get to
spend time with my family or my
loved ones.
I think that is a healthy place
for us to be.
I think we are just at the
beginning of the conversation
because I think in terms of
worklife and professions, we are
all trying to figure out how
does this new normal work.
Amna: What do you think?
David: I made those really --
resolutions to not go back to my
before life and now I have gone
back.
So, over scheduling, over
commitment.
So, I'm guilty.
I think things have changed.
I can walk our viewers down
through downtown D.C.
It does not look the same as it
did.
Downtown New York, a lot of the
downtowns have not recovered so
people really have moved.
I think the mental health
effects on young people in
particular are long-standing and
that is reflective when you talk
to teachers.
The ability to concentrate.
The final thing I would say is I
don't think we have memorialized
the one million Americans who
have died enough.
President Biden, a day before
inauguration, he had that
ceremony.
We need to do that more.
There are one million households
who lost somebody.
I think we still have not quite
faced the emotional leftovers of
that.
Amna: Three years later, we are
dealing with it still.
We've got about a minute or so
left.
We have arrived at my favorite
time of the year which is March
Madness.
The NCAA basketball tournament.
I have to ask both of you, are
you cheering for anyone?
Do you have a Cinderella team?
>> I cheer on the men's side,
Indiana and Marquette.
I always cheer for them.
They gave me an honorary degree.
[Laughter]
The cinderellas like duke, they
never win anything.
Amna: Who speaks for duke,
right?
>> On the women's side, I am
going for Villanova.
>> I hate UConn.
Amna: There will be mail.
>> They win too much.
Amna: Jonathan?
Jonathan: The only Cinderella I
am rooting for is the one in the
ruby slippers.
[Laughter]
Amna: On that note, Jonathan
Capehart, David brooks, always
good to see you.
Thank you.
>> Thanks, amna.