WE’RE JUST HEADING INTO THE CLOSE THERE.
CLOSE THERE. 973 LOWER ON THE DOW AFTER THE
FED CUTS RATES THIS MORNING,
BECAUSE OF THE CORONAVIRUS.
NBC BUSINESS CORRESPONDENT IS
HERE WITH ME.
NOW, INVESTORS DIDN’T SEEM TO
LIKE THE CUT TODAY.
WHAT IS GOING ON?
>> ON ONE LEVEL, WE HAVEN’T SEEN
A RATE CUT LIKE THIS.
OTHER TIMES WE’VE SEEN IT.
IT’S AN EXTRAORDINARY TIME.
WHAT IS EXTRAORDINARY NOW?
THE OTHER THING IS THE
FOLLOWING, THE IDEA OF A RATE
CUT IS TO GET PEOPLE AND
BUSINESSES OUT THERE SPENDING
AND BORROWING.
AND BORROWING. THAT’S THE OPPOSITE OF THE
INSTRUCTIONS WE’VE BEEN GIVEN TO
PREPARE FOR CORONAVIRUS, WHILE
WE’RE SITTING HERE WITH MORE AND
MORE COMPANIES SAYING ABSOLUTELY
NO TRAVEL, IF POSSIBLE, WORK
FROM HOME.
FROM HOME. THE IDEA OF A RATE CUT TO GET
YOU OUT THERE, REFINANCING YOUR
HOME, THAT’S THE OPPOSITE WHAT
THEY’RE DOING.
THEY’RE DOING. WE SAW IT HAPPEN IN AUSTRALIA,
IT COULD HAPPEN AROUND THE
WORLD, CENTRAL BANKS.
BUT IT MAY NOT BE ENOUGH TO
TARGET WHAT AILS U.S.
>> AND YOU SAY THE GOOGLE
CONFERENCE WAS CANCELED AND
ANNUAL CONFERENCE.
ANNUAL CONFERENCE. WHAT STARTLED THE FED, YOU
EXPECT THEM TO CUT RATES IN TWO
WEEKS WHEN THERE’S A MEETING?
>> THAT’S THE POINT, THEY HAVE A
MEETING IN TWO WEEKS, SO WHY DO
IT NOW?
IT NOW? DID THE FED GET PRESSURED BY
PRESIDENT TRUMP TO DO THIS?
IT’S VERY IMPORTANT TO THE FED
TO MAINTAIN THEIR INDEPENDENCE.
WHILE THERE’S NO PROOF BY THE
DIRECT LINE, PEOPLE ARE SAYING
WAIT A SECOND, HERE IN NEW YORK
PEOPLE ARE NOT FEELING IT AFFECT
THEIR DAILY LIFE SO WHEN THE
FED, WHO HAS A LOT MORE
INFORMATION THAN YOU DO ABOUT
SUPPLIES, BUSINESS, IT HAS
INVESTORS WORRIED.
INVESTORS WORRIED. ONE THING TO THINK ABOUT, WHEN
YOU HEAR ABOUT ALL OF THESE
CANCELLATIONS, REMEMBER
CANCELLATIONS, REMEMBER CORPORATIONS, MAJOR EVENTS,
THEY’RE ALL INSURED.
THEY WILL GET THEIR MONEY BACK.
BUT REMEMBER WHERE YOU WILL SEE
A REAL IMPACT -- SHIFT WORKERS,
PART-TIME WORKERS.
PART-TIME WORKERS. IF SUDDENLY SCHOOL IS CLOSED AND
YOU’RE A WORKING PARENT, WHO’S
GOING TO WORK THAT DAY?
YOU CAN’T PUT FOOD ON YOUR
TABLE.
TABLE. YOU HAVE TO BE HOME WITH KIDS.
WE’RE THINKING ABOUT ALL OF
THOSE HOURS LOST, ALL OF THOSE
JOBS.
JOBS. AND MANY OF THOSE PEOPLE DON’T
EVEN HAVE HEALTH CARE TO BEGIN
WITH.
WITH. THERE’S A BOTTOM LAYER THAT
REALLY COULD SUFFER HERE.
>> AND EVEN JUST LOOKING AT THE
MARKETS OVER THE LAST COUPLE
DAYS, 1,293 AND PEOPLE SAY MAYBE
WE’RE OKAY, MAYBE WE’RE ALL
RIGHT.
RIGHT. BUT MAYBE A WAKE-UP CALL TODAY,
MAYBE WE’RE NOT?
>> MAYBE, BUT IF YOU’RE A
DAY-TRADER, YOU WANT TO BE AWARE
OF THE MARKET.
YOU HAVE OVER 50% AMERICANS
HAVING 401(k)s.
HAVING 401(k)s. BUT YOU SHOULDN’T LIVE AND DIE
BY IT.
BY IT. TAKE THE APP OFF YOUR PHONE
GIVING YOU THESE UPDATES.
YOU WANT TO BE AWARE BUT TAKE A
STEP BACK.
STEP BACK. YOU REMEMBER YESTERDAY YOU MAY
HAVE HAD A LOT OF INVESTORS
SAYING HOLD ON, THIS MIGHT BE
THE OPPORTUNITY TO BUY THE STOCK
I ALWAYS WANTED TO IF MY TIME
ARRIVES IN TEN YEARS.
IT MIGHT BE A PERFECT TIME TO
BUY A APPLE OR DISNEY.
BUT THINKING ABOUT THE INS AND
OUTS OF THE MARKET, THE FED GOES
WHAT’S GOING ON AND TO ME I’M
THINKING ABOUT THAT TRICKLE-DOWN
EFFECT.
EFFECT. >> AND A FORERUNNER TO THAT.