JACKIE: LYDIA HU, THANK YOU SO
MUCH.
JOINING ME WITH REACTION,
O’LEARY VENTURES CHAIRMAN OR
MORE COMMONLY KNOWN AS "MR.
WONDERFUL" KEVIN O’LEARY
GREAT TO HAVE YOU WITH US.
THANK YOU SO MUCH FOR BEING HERE
IN STUDIO.
>> THANK YOU.
JACKIE: YOUR REACTION TO THAT
REPORT BECAUSE THIS IS SOME
AMERICANS BIGGEST NIGHTMARE AND
ACTUALLY COMING TO FRUITION,
EXPANSION OF THE IRS.
AS LIDIA POINTS OUT THEY MIGHT
GO AFTER THE TOP AND WHEN
THEY’RE DONE THERE, THEY ARE
GOING TO COME FOR EVERYBODY
ELSE.
>> I THINK AND THIS IS JUST MY
BREAD AND BUTTER.
I INVEST IN COMPANIES THAT
REPRESENT 70% OF OUR ECONOMY,
SMALL BUSINESS IN AMERICA.
THE TAX CODE WAS WRITTEN FOR
THEM, AND I ENCOURAGE, I
TALKED TO MY CEO’S ABOUT THIS
TODAY WE HAD A BIT OF A
TOWN HALL OURSELVES AND SAID
OKAY, THIS IS A REALITY.
WE GOT TO START PREPARING OUR
TAXES AND OUR PAYROLL RECORDS.
I MEAN, WHERE SOME OF THE
BIGGEST PROBLEMS HAPPEN IN
SMALL BUSINESS, YOU’RE GROWING,
YOU’RE SCRAMBLING TRYING TO KEEP
THINGS OPEN, TRYING TO MAKE
PAYROLL EVERY WEDNESDAY NIGHT,
AND YOU FALL BEHIND IN KEEPING
YOUR RECORDS CLEAN.
WHAT THIS TELLS YOU NOW IS
YOU’VE GOTTA HAVE CRYSTAL CLEAR
RECORDS.
YOU HAVE TO INVEST IN KEEPING
YOURSELF COMPLIANT, BECAUSE WHEN
YOU DO AND IF YOU GET AUDITED,
THE BEST THING IS TO HAVE THE
DATA, BECAUSE WHEN YOU DON’T
HAVE IT, THIS IS GOING TO GET A
LOT HARDER.
NOW I DON’T KNOW HOW FAST THEY
ARE GOING TO PUSH ON THESE
AUDITS BUT THIS IS SOMETHING
THAT WE DEAL WITH NOW ANYWAYS
AND SO IT’S JUST GOING TO BECOME
MORE OF A BIG FACTOR WHICH MEANS
WE’LL INVEST MORE IN PAYROLL
TECHNOLOGY, IN ACCOUNTING
RECORDS AND EVERYTHING ELSE, WE
HAVE TO.
JACKIE: AS I WAS GOING TO SAY
IT’S GOING TO COST MORE AND
EVERYBODY HAS TO START THINKING
ABOUT HOW TO BUDGET FOR THAT AS
THEY MOVE FORWARD, AND ALSO
POSSIBLY FOR DEFENSES AND
ACCOUNTANTS AND LEGAL FEES IF
THEY HAVE TO DEAL WITH THAT IF
THEY ARE AUDITED AND THERE’S AN
ISSUE.
>> ONE NOTE I WOULD MAKE AND
YOU HAVE TO REALIZE IS THE IRS
HAS PROGRAMS FOR SMALL BUSINESS
TO SUPPORT THEM THAT HAVE BEEN
LINGERING AROUND SINCE 2020.
THE EMPLOYEE RETENTION CREDIT IS
OFF THE W-2 PAYROLL.
FOR THAT, THE IRS IS NOT YOUR
ENEMY.
THEY ARE YOUR FRIEND.
YOU JUST HAVE TO LEARN HOW TO GO
GET IT.
IF YOU KEPT EMPLOYEES ON DURING
2020, AND 2021, THIS PROGRAM IS
STILL AVAILABLE FOR 23 MONTHS
AND EVERY SINGLE ONE OF MY
COMPANIES IS APPLYING FOR IT IF
THEY ARE ELIGIBLE SO YOU DON’T
WANT TO MAKE AN ENEMY OF YOUR
IRS AGENT WHEN THEY ARE TRYING
TO HELP YOU RIGHT NOW, GET YOUR
CREDITS THAT YOU’RE OWED UP TO
26,000 PER-EMPLOYEE.
JACKIE: WE KEEP SAYING THERE’S
MONEY OUT THERE.
>> THERE IS.
JACKIE: PEOPLE JUST DON’T KNOW
HOW TO GO AFTER IT.
>> SO YOU CAN LEARN ALL ABOUT
THIS ONLINE.
JACKIE: LET’S SWITCH GEARS FOR
A MOMENT BECAUSE YOU AND I
WERE TALKING ON THE BREAK ABOUT
THE BIGGEST ISSUE ON YOUR RADAR
WHICH IS ESSENTIALLY POST-
BANKING CRISIS SMALL AND
MEDIUM-SIZE BUSINESSES WHICH ARE
THE BACKBONE OF THIS COUNTRY AND
A LOOMING CREDIT CRUNCH.
TALK TO ME A LITTLE BIT ABOUT
THAT.
>> I WANT TO BRING IT UP
BECAUSE THERE’S TWO PIECES OF
DATE THAT ARE NOT ROLLED INTO
CPI WHEN WE KEEP TALKING ABOUT
THE FED RAISING RATES ANOTHER 25
BASIS POINTS IN THE MAIN MEETING
HERE IS THE DATA WE DON’T HAVE.
TWO BIG PIECES.
THE RENT ROLLS THAT ARE
INCORPORATED INTO CPI ARE REALLY
OLD, UP TO 18 MONTHS OLD.
RENT IS ROLLING OVER IN SO MANY
MARKETS I’M INVESTING IN.
THE COASTAL STATES KNOW.
MIAMI KNOW, L.A., NO, BUT
EVERYWHERE ELSE THEY ARE DOWN 20
%.
IT’S NOT YET REFLECTED IN CPI
AND WE TALK ABOUT A 6.1%
INFLATION.
IT’S NOT TAKING INTO ACCOUNT THE
RENTS ROLLED OVER BUT
SECONDLY, AND THIS ONE CAME TO
ME HARD LIKE A WALL, BRICK WALL
THIS MORNING.
I WAS TALKING TO SOME OF MY CEO
’S SAYING OKAY, WHAT’S
HAPPENING IN YOUR CREDIT CRUNCH
WITH YOUR BANKS?
THIS IS PRIMARILY REGIONAL BANKS
THEY HAVE STOPPED LENDING, SO
THIS , I WANT TO SEE THE REPORTS
NOW FROM THE CREDIT OFFICERS
ACROSS THE COUNTRY.
WE DON’T HAVE THIS DATA YET.
WE’RE GOING TO GET IT IN THE
NEXT 10-20 DAYS.
EVERY LOAN OFFICER, SENIOR LOAN
OFFICER, TELL US WHAT YOU’RE
DOING IN REACTION TO THE
MELTDOWN THAT OCCURRED IN
REGIONAL BANKS.
ARE YOU TIGHTENING THE SPIGOT
AND THE ANSWER IS GOING TO BE
YES.
THAT IS WORK THAT ACTUALLY IS
GOING TO HELP THE FED, BECAUSE
THAT’S GOING TO START TO CHOKE
BUSINESS.
I’LL GIVE YOU AN EXAMPLE
SOMETHING CALLED FACTORING.
WHEN YOU SELL TO WALMART AND
TARGET, LIKE COMPANIES DO THAT,
WE GO TO THE FACTORING MARKET TO
BORROW MONEY AGAINST THE 60 OR
90 DAY RECEIVABLE AND PAID 7-8%
I’VE GOT ONE PAYING 29% TODAY.
JACKIE: WOW.
>> THAT’S SOMETHING WE HAVE NOT
YET SEEN IN THE DATA.
WE’VE GOT TO KEEP OUR EYES ON.
THIS IS GOING TO SLOW THE
ECONOMY.
I DON’T KNOW IF THE FED CARES
TOO MUCH BUT I CARE.
I’M AN INVESTOR.
I’M SUPPORTING THESE BUSINESSES,
AND THERE’S MILLIONS OF PEOPLE
LIKE ME THAT WANT TO SEE THESE
COMPANIES SUCCEED.
JACKIE: SO FRIDAY THE FED HAD
ME CONVINCED WITH THE JOBS
NUMBER, IT WAS A LITTLE BIT
LOWER THAN EXPECTED.
MAYBE HE’S GOT THAT SOFT LANDING
FIGURED OUT BUT WHEN I HEAR THIS
, I HEAR SORT OF HERE IS A
DARK CLOUD AHEAD THAT WE HAVE
NOT SEEN YET.
>> I WANT TO PUT UP MY HAND AND
SAY PLEASE LOOK AT RENT ROLLS.
PLEASE LOOK AT LOAN OFFICER DATA
PLEASE LOOK AT IT.
PLEASE.
JACKIE: OKAY, THAT’S A REALLY
IMPORTANT POINT TO MAKE, AND
JUST THIS FINAL POINT.
NEW CNN POLL THAT JUST CAME OUT
TALKING ABOUT HOW AMERICANS FEEL
ABOUT THE ECONOMY, 71% WOULD
RATE THE ECONOMIC CONDITIONS IN
THE COUNTRY POOR.
>> THAT’S REFLECTION ON
MISGUIDED POLICY.
I’M NOT INTO POLITICS.
I’M INTO POLICY.
THERE’S SEVERAL THINGS HERE THAT
I’M NOT HAPPY ABOUT AS A POLICY,
A HISTORIAN.
I STUDY HISTORY TO SEE WHERE TO
INVEST IN THE FUTURE.
WE NEED ENERGY INDEPENDENCE.
THAT’S GOOD POLICY.
I DON’T CARE WHAT SIDE OF THE
FENCE YOU’RE ON, WHAT’S
WRONG WITH MAKING AMERICA ENERGY
-INDEPENDENT?
THAT’S NUMBER ONE FOR BOTH SIDES
JACKIE: WHICH WE WERE.
>> YEAH, AND NOW WE’RE NOT.
WE GOTTA FIX THAT AND THIS CHINA
THING IS A PROBLEM.
WE’VE GOTTA WORK SOMETHING OUT
WITH CHINA.
THEY AREN’T PLAYING ON A LEVEL
PLAYING FIELD WITH US.
IT’S TILTED.
IT’S BIAS THERE.
WE’VE GOT TO ACTUALLY, I DON’T
WANT TO GO TO WAR WITH THESE
GUYS.
I WANT TO CUT A DEAL THAT GIVES
US ACCESS TO THEIR MARKET THE
WAY THEY ARE TRYING TO GET
ACCESS TO OURS.
WE’RE GIANT TRADING PARTNERRINGS
LET’S MAKE MONEY TOGETHER NOT
BLOW EACH OTHER UP.
JACKIE: KEVIN O HERE IT THANK
YOU SO MUCH, I CAN’T WAIT TO
HAVE YOU ON ""THE BIG MONEY
SHOW"" WE HAVE A TOWN HALL
TOMORROW, 1:00 P.M. EASTERN TIME
, YOU WILL BE THERE, CHARLES
WILL BE THERE, CO-HOST BRIAN AND
TAYLOR WILL BE THERE AND WE’LL
BE TALKING ABOUT BANKING AND
WHAT ELSE IS ON YOUR RADAR.
>> I’M GOING TO REALLY ENJOY
THAT.
I LOVE A LIVE AUDIENCE.
JACKIE: WE’LL HELP THEM SETUP A
PLAY BOOK BECAUSE THIS IS A
WHOLE NEW WORLD FOR THEM RIGHT
NOW.
>> CERTAINLY IS THE LAST 14