ANSWER ON THAT, CHARLES.
>> Charles: I’M NOT SURPRISED.
THANKS SO MUCH, JACKIE.
SO TALK ABOUT MIXED MESSAGES.
A NEW REPORT SAYS THAT CHANCES
OF RECESSION ARE WITHIN THE NEXT
12 MONTHS, 100%.
YOU RARELY HEAR THAT.
IT IS SOMETHING THAT MY NEXT
GUEST HAS BEEN SAYING ALL YEAR.
INVESTORS APPARENTLY FOCUSING ON
BETTER THAN EXPECTED RESULTS
FROM BANK OF AMERICA.
HERE TO TELL US WHAT IS GOING
ON, THE FORMER CEO OF HOME
DEPOT, ROBERT NARDELLI.
BOB, GREAT TO SEE YOU.
JUST LISTEN, THE STOCK MARKET
OCCASIONALLY GOES UP.
I DON’T WANT TO FOCUS ON THAT AS
MUCH AS THIS DUEL THREAT, THIS
RUN-AWAY INFLATION.
THE NUMBERS KEEP GOING HIGHER
THEN RECESSION WHICH IS EATING
AT SOME PEOPLE AND WILL GET
WORSE.
HOW DO WITH DEAL WITH THIS DUEL
WORLD?
>> THANKS, CHARLES.
GREAT TO BE WITH YOU TODAY.
THANKS FOR ACKNOWLEDGING -- YOU
AND I HAVE BEEN TALKING ABOUT
THIS FOR SOME TIME NOW.
THE REALITY IS THAT IT’S NOT IF
WE’RE WE’RE GOING TO HAVE A
RECESSION, CHARLES YOU AND I
BOTH KNOW, WE HEARD WITH JACKIE
SAID ABOUT UTILITY COSTS.
SHE MENTIONED GAS.
LATEST FORECAST I SAW, WE HAVE
90 YEARS OF RESERVES IN THE
GROUND FOR NATURAL GAS.
LET ME COMMENT ABOUT HOW WE GET
HERE.
WE HEARD THAT IT WAS GOING TO BE
TRANSITORY.
THAT’S THE SECRETARY OF THE
TREASURY, THE CHAIRMAN OF THE
FED.
THEN WE HEARD FROM THE SECRETARY
OF TRANSPORTATION THAT IT’S
POSSIBLE BUT NOT INEVITABLE.
THAT’S LIKE STANDING IN FRONT OF
YOUR HOUSE WATCHING A TORNADO
COME.
ONCE IT BLOWS IT AWAY, YOU SAY
MAYBE IT WAS INEVITABLE.
THE CEOs TODAY, LET ME SAY THIS,
CHARLES, ARE MORE CHALLENGED
THAN I HAVE EVER SEEN THIS IN MY
50 YEARS OF CAREER.
YOU TAKE EVERY FIGURE YOU GOT
AND YOU TALK ABOUT INFLATION,
YOU TAKE ABOUT SUPPLY CHAIN,
LABOR.
YOU TALK ABOUT A PLETHORA OF
CHALLENGES THAT THEY’RE FACED
WITH.
THESE CEOs, LARGE, SMALL,
PRIVATE, PUBLIC, DID A HECK OF A
JOB WORKING THROUGH COVID-19.
WE CREATED AN ENVIRONMENT AND A
CULTURE NOW WHERE IT’S ALL ABOUT
NOT HOW TO, BUT WHY NOT.
WE GOT QUIET QUITTING GOING ON,
RIGHT?
WE HAVE PEOPLE THAT DON’T WANT
TO COME TO WORK.
SOME OF THAT WILL BE RESOLVED.
WE’RE SEEING JOB REDUCTIONS.
WE SEE JOB CUTS.
PEOPLE TALK ABOUT SPENDING IS
UP.
YEAH, BECAUSE SAVINGS ARE DOWN.
WE JUST SAW THAT REPORT THE
OTHER DAY.
DIDN’T WE, CHARLES?
THE SUPPLY CHAIN.
I’M ONE YEAR BEHIND ON MY ORDERS
FOR CHIPS COMING OUT OF CHINA.
SO THIS IS -- I KNOW PEOPLE ARE
TRYING TO PUT A BRAVE FACE ON
THIS.
WE’RE LEAST PREPARED TO FACE A
RECESSION THAT IS CLEARLY COMING
AT US LIKE A ROCKET SHIP.
I JUST --
>> Charles: TO YOUR POINT, THE
CONFERENCE BOARD HAS SAID
CONDITIONS HAVE GOTTEN WORSE AND
THE KPMG HAS 91% OF THE NATION’S
400 LARGEST COMPANIES SAYING
RECESSION IN THE NEXT YEAR.
TO YOUR POINT, ONE OF THE GREAT
SOURCES FOR THIS HAS BEEN A
PHILOSOPHY, A BELIEF THAT FREE
MONEY, MODERN MONETARY THEORY,
THE GOVERNMENT CAN PRINT AS MUCH
MONEY AS POSSIBLE IN PART TO
RIGHT THE WRONGS OF YESTERYEAR,
SOCIAL JUSTICE.
WAGE PRICE SPIRAL WHERE SMALL
BUSINESSES CAN’T GET ANYONE TO
WORK.
THAT SPARKS RUN AWAY INFLATION
AND THEN THERE’S THIS QUIET
QUITTING, ANTI-WAR PHENOMENON
THAT WE HAVE NEVER SEEN BEFORE.
HOW DO YOU TURN THAT AROUND?
>> THE ONE THING IN THE KPMB
SURVEY, 59% OF THE CEOs, I DON’T
CARE WHAT YOU HEAR, 59% OF THE
PEOPLE RESPONSIBLE FOR SPENDING
ON ESG SAID THEY’RE GOING TO
PULL BACK.
THEY SAID THEY’RE GOING TO PULL
BACK.
THAT’S ANOTHER BOLT OF REALITY
THAT WE’RE DEALING WITH.
WE HAVE TO GO BACK AND RECREATE
THE WORK ENVIRONMENT THAT CAN-DO
ATTITUDE, THE SPIRIT WHICH GOT
OUR COUNTRY TO WHERE IT WAS AND
NOT DAMPEN BY THIS
ADMINISTRATION.
YOU KNOW, THE FIRST DAY, THE
FIRST DAY OF THE INAUGURATION,
WE SHUT DOWN OUR INDEPENDENCE.
WE SHUT DOWN -- THAT’S
SELF-INFLICTED ON THIS COUNTRY.
WE JUST GOT TO STOP THERE.
WE HAVE TO STOP THE SPENDING,
GET BACK TO WHERE WE WERE AND
RE-ESTABLISH THIS CAN-DO
ATTITUDE, THIS GLOBAL
COMPETITIVENESS.
IF WE WERE STILL FRACKING, ONE
OF THE BIGGEST GEO POLITICAL
THINGS THAT WE COULD HAVE ABOUT
RUSSIA WAS THE EXPERT OF GAS,
THE OPPORTUNITY TO HELP GERMANY
AND SOME OF THESE OTHER
COUNTRIES.
NOW WE’RE HAND TIED IN THIS
THING.
WE JUST GOT TO STAND UP AND GET
THINGS RIGHT AGAIN.
THE CHALLENGES ARE IMMENSE OUT
THERE TO TRY TO GET OUR CULTURE,
OUR WORK ENVIRONMENT, OUR
PRODUCTIVITY, OUR
COMPETITIVENESS BACK TO WORK.
WE HAVE TO GET BACK IN THE
OFFICE AND GET BACK TO WHERE WE
WERE, CHARLES.
>> Charles: BOB, THE PROBLEM IS
THE ADMINISTRATION IS NOT
HEARING WHAT YOU’RE SAYING.
I WANT YOU TO HEAR THE
PRESIDENT’S ASSESSMENT OF WHERE
THIS ECONOMY IS RIGHT NOW.
>> OUR ECONOMY IS STRONG AS
HELL.
INFLATION IS WORLDWIDE.
WORSE OFF EVERYWHERE ELSE THAN
IT IS IN THE UNITED STATES.
SO THE PROBLEM IS, THE LACK OF
ECONOMIC GROWTH AND SOUND POLICY
IN OTHER COUNTRIES, NOT SO MUCH
OURS.
>> Charles: OUR ECONOMY IS
STRONG AS HELL.
A QUICK REACTION WHEN YOU HEAR
THAT.
>> IT’S TOTALLY NOT VALID.
IT’S NOT CORRECT.
IT’S A MISSTATEMENT.
WE’RE GETTING THAT KIND OF FALSE
SENSE OF COMMUNICATION OUT
THERE.
IT’S LULLING OUR PEOPLE IN
COMPLACENCY, CHARS.
WE HAVE TO TELL THE TRUTH.
WE’RE ALL SUFFERING OUT THERE.
WE’RE ALL SUFFERING COST
INCREASES, ABILITY TO GET LABOR
TO WORK.
WE HAVE TO START SEEING THE
WORLD THE WAY IT IS.
I DON’T CARE ABOUT THE REST OF
THE WORLD.
I CARE ABOUT OUR COUNTRY AND
BECOME THE LEADER WE WERE.
>> Charles: IT’S NOT ORDAINED.