store storage. five, we put it on these tanker trucks k. and, six, we take it to the gas station and that little bitty gas station other than who probably scraped to open up that place. they make a few bucks on it. by the way, all of that stuff is done with diesel. do you know how much that's up? it was $2.96 in january when president biden came into office. it's up over $4 right now. someone cue oscar. i mean, where's oscar in all of this? we feed a counterargument. yeah, we're all upset and frustrated, but the bottom line in my opinion, in my opinion, the main reason for all of this inflation and the reason it won't go down is we brought $3 trillion into the economy. they tried to give away money for votes, and it's backfired. and the problem is, it ain't going away. liz claman, you go to the supermarket. you know what i'm talking about. liz: yeah. why is every single item $10 or more? [laughter] charles: i don't know. of every one. liz: yeah. i'm glad you just mentioned

diesel. we're talking diesel engines with cummins, that big engine company. ceo is here on fox business, so i hope you watch. the bears, folks, have called the cops on the bull party. as we kick off the final hour of trade, that party's breaking up. stocks pulling back from record levels for a second day in a row. the dow jones down 470 points. that is a loss of about 1.25. the s&p down 66 points, and the nasdaq -- it's a bigger chunk here, 2% loss of 323 points. and the russell 2000 losing 22 points. now, one thing for sure the markets are getting no help this time around from semis, software or cybersecurity. igv is, ishares expanded tech software etf, is down as you see about 4.33%. the philly semiconductor index losing about 2.7, and then the amplify cybersecurity etf, ticker symbol hack, is down 3.5%

but it's not just stocks. investors are showing some real caution aahead of jay powell's testimony. the federal reserve chief appears before congress twice this week, first tomorrow at the house of representatives and then thursday, the senate. and then friday's big february jobs report, no doubt, is putting a cap on any bullish exuberance. now, the fed certainly is in focus amid the fallout at new york community bank. shares today though, this is a pretty significant bounce here. after falling 23% yesterday, it's back up about 15 plus percent. but that is, obviously, not enough to erase yesterday's fall. but if you even look just year to date, and we don't need to remind you we're barely into the third month of 2024, that stock has fallennen 69%. coming up, former fdic chair sheila bair joins "the claman countdown" to talk all things new york community bank and to tell us why she is now saying bank failures are looming.

all right. what exuberance there was in the markets earlier has settled down a bit, and when i say bit, i mean bitcoin. the morning the crypto turned on the booster rockets and blasted to an all-time high of $69,202 before then reversing, sinking right now about let's i call it is it 88ing %? if yeah, sinking about a 8.1% at the moment we've got it at $62,158. the momentum though the definitely started in january. year to date bitcoin as a gained more than 50 -- well, is that about 50%. these numbers are changing every single second, especially with cryptocurrencies. very volatile. another record smashed, only the one today is holding, we've got gold surpassing $2100 per ounce. that would have been a record. and right now it's at 2 2139 per troy ounce. as for ec by it's, ono doubt ec bities, the dow is less than 2

percentage points if from the a new record. it closed at a record of 39,131 on february 23rd, right now we're at 38,515, but the other indices are not far off either. s&p yesterday, just yesterday, notched a new all-time intraday high before reversing. and, you know, the s&p and the nasdaq both closed at records as recently as friday. all a last year do you remember morgan stanley's mike wilson? if he was bearish and wrong. but now jp porks -- morgan is saying bubbles are forming in the market and in bitcoin. as for the mag 7 stocks, they're looking more like sag 7 stocks. let's look at apple. apple is falling at the moment another 2.8% on a report or indicating china iphone sales are down 24% in just the first six weeks of 2024. due to competition from the chinese phone maker huawei. and flint over toes tesla sharea

shares. so many organizations and media outlets say tesla shouldn't be in the mag 7 anywhere, shares down 4.5% on track for their lowest close since may of last year as tesla germany has been forced to halt all a work due to a suspected arson. the plant is expected to remain down for days as they figure out and tamp down on the fire. in the meantime, meta if also declining after facebook and instagram were hit by outages earlier today. that stock down 1.6%. so let's get right to the floor show 'cuz we've got a lot of moving parts here. blackrock's global co-head of fixed income etf, steve blakely and tom hayes who says, you know what? it is possible to brace for a correction but still be bullish. what do you mean by that, tom? how do you do that? >> warren buffett said beware of geeks bearing formulas -- [laughter] and the narrative of the market for the last two months has been a.i. and bitcoin. well, a.i. is going to change the world. it's just not going to do it by next tuesday. the market is up 16 out of the

last 18 weeks. we haven't had a 2% correction in 87 trading -- liz: that's it, a measly 2% correction? >> measly e 2% correction. so last week and a half we were on the network for the first time, and you know i've been bullish for the last year and a half each when it was very, very lonely. we kid put a portfolio hedge on, index put spread to dampen volatility and give us excess capital if we get a 5-7% pullback to get long and constructive, so we are constructive, we are fully invested but now we are hedged for a normal seasonal pullback. liz: you initiated a tactical short. give that that to our viewers in plain english. >> yeah. so we went out a couple of months during the election years, february, march, april tends to be a weak part of the season. we've run up quite a bit. earnings are good, but we're trading at 20.5 times forward earnings. that's a little rich ared. a little bit out of the money s&p put spread, so you buy the near strike price and you sell

the lower strike price, so if the market moves that 1% of equity capital, if the market pulls back 5-7% we make 5x on our money which gives us nice portfolio dampening. liz: steve, we had a lot of equity records, also some significant bond records at least certainly year over year. when you look at the record when it came to inflows into bond funds, 300 billion. 203.7 billion of that was here in the u.s. and you guys got a huge chunk of that over at ishares. does that continue and in what form? >> yeah. i think we're pretty bullish e on it because if you look at the landscape today, we're at yield levels that are greater than they were 20 years ago, which i think is pretty remarkable. so there's tremendous opportunity in the bond markets right now. so we saw investors deploy over the last two years, you know, granted, some investors were early. we did have that runup to 5%. but now as we can see even from today's price action we've

retraced. we could probably be sideways ear here if for a while as everyone sorts through what the fed's posture is going to be. we're going to get more information on that this week. we're going to get more data coming in. we're very bullish on the idea of upping your fixed income allocation. we think investors have been fairly underweighted even after these flows. we think there's a lot of room to run are. liz: okay, so what is the best actual trade? if you're trying to look at the yield, considering also the current potential upside valuation gains as a rates fall -- as a rates fall, i mean, this is a lot of cross-currents investors have to be faced with. >> yeah. there are a lo of macro factors. if you're in the soft landing camp, then risk assets are attractive. so even if these tight spread if levels, high yield offers excellent carry -- liz: what if i'm in a hard landing scenario? >> you want high quality duration, so that can mean long-dated investment grade or even more, long-dated

treasuries. liz: how long? a 5, 7? >> we saw over 20 billion last year, so we'll' if those flows pick back up again. liz: well, again, just because the herd or is doing one thing, tom, doesn't mean that each investor has to do the same or follow that herd. what are you doing differently beyond what we've just talked about? >> as you know, they call me turn-around tom for a reason. we like dramatically out of favor companies that are high quality. so one is advanced auto parts which actually got upgraded today. the ceo, shane to kelly, he came from hd supply which was a $7. billion business for home depot. advanced auto e parts is down 70%. he's been in for about a quarter. before he could even find the coffee machine, he took -- liz: he's one of those. [laughter] >> he's selling off the canadian business, he's going to delever the balance sheet, simplify the supply chain and distribution certains, and he took guy e dance up in his first quarter

10%, and he said we're going to have at least 250 million of free cash flow next year which is critical in a turn-around a situation because you need the runway to get the turn-around in place. we talked about it in the mid if 50s, it's now up over 70. we think this can go to triple digits e over the next 12-24 months. liz: steve, jay powell is speaking tomorrow and then thursday. what are you expecting from him, and when are you expecting the first rate cut? if. >> i think what we're probably expecting from him baseline is he's going to reinforce this narrative that they can be patients continue to watch the data come in. the market's pricing that in. you know, tom and i were talking before the show just how it's shifted. we shifted from as many as a six cuts to a little over three and a half at this point. i do think the market's sort of centered on around a june, so we'll see if that plays out. but i think he's more than likely going to reinforce that message. liz: okay. guys, we gotta run. were very close to session lows, particularly with the nasdaq. the nasdaq's session low, new

one, 329-point loss, we're down 324 point wees. steve, tom, always a good to see you both. thank you very much. you know, it it may seem anti-green, one major industrial making a very big bet that diesel is not dead. but the ceo of engine maker cummins is here to tell us why her company is pressing ahead with the next generation diesel combustion engine and how he says it's actually part of her destination zero emissions plan. ing can those two things exist together? if the ceo of cummins believes so. she joins us next, first on fox business as cummins' stock hits an all-time high. and the spider energy etf up about three-quarters of a percent right now to 86.83 here, and we are looking at it over the last two weeks, a gain of 1.5%. "the claman countdown," we're always gaining especially for you guys. we are coming right back. ♪ ♪

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liz: on this super tuesday, inflation, of course, continues to take a front and center position as voters head to the polls. gas with lean prices have actually been -- gasoline prices have been relatively tame for the past year, but what about the past 10 years? this week the average price of a gallon of gasoline in the u.s. ticked up 9 pennies from haas week. aaa says some of it's seasonal driven by spring break driving demand, but the presidential candidates all have different positions on this. the biden administration has a history of taxing the fossil fuel industry, and republican candidate nikki haley has accused former president donald trump of supporting a hike in

the national gas tax of up to 25 cents during his time in office. meanwhile, diesel fuel has actually come down 2 cents over the last week. cummins, the top u.s. manufacturer of both diesel and alternative fuel if engines, is working to help customers spend even less. it's unveiled a new, more energy-efficient engine that gets its customers one step closer to what cummins calls destination if zero. joining me now first on fox business, cummins' ceo jennifer rum if ze, and you're joining us on a day where i said it was at a high? it's at at an all-time high. right now, $275.23, never before seen. so you get to be at the helm of that. that's got to feel good. >> yeah. yeah, for sure. liz: you know, diesel, let's talk about it. because it was always associated with black smoke streaming out of tailpipes. how are you changing the con that diction that clean and diesel can't coexist?

>> yeah, well, i think we've been changing that, that story really for the last couple of decades. and the diesel engines that we're producing today in the u.s. have 95 less n work x and particulate emissions, and our strategy has been to embrace this need for change to drive innovation and growth. it's driven us to record revenue in 2023 of $34 billion for the company, and our destination zero -- [audio difficulty] strategy is all about how do we embrace the need to decarbonize our industry over time and use that to continue to grow cummins' business. liz: i want to talk about this next gen15 engine. give us some details on it and how it is transformative and brings you closer to that. >> yeah. so as a part of our strategy, destination zero is really a dual-pronged strategy the first focused on our core business and continuing to invest in engine-based solutions, and we've announced --

[audio difficulty] we're investing a billion dollars in our u.s. engine plants to bring these new engines into the market, high efficiency, lower missions, fuel flexibility. the 15-liter will be the first of those products we lawn of. here in the u.s., the natural gas version this year, and then the diesel version or in 2026. and, you know, these are market-leading engine platforms that will be highly efficient, saving our customers fuel dollars and also reducing the co2 impact on the planet with these diesel-based solutions. and they have the ability to have fuel flexibility. so that natural gas engine with renewable gas, which is increasingly coming in to the market, can be a net zero co2 emissions. it's a really exciting part of our strategy even as we also invest in the zero emissions solutions including electrizers, battery solutions and fuel cells. and, you know, we announced last year that we're going to be

manufacturing battery cells in partnership with daimler truck, packard ev energy here in the u.s. to support commercial vehicle electrification. so a lot of exciting things happening. liz: well, that is the point, isn't it? i mean, you look at your customer base, and you have very big names, some of which you just mentioned. we can put up a whole bunch here that include volkswagen, volvo, stellantis. and, obviously, you're doing this because, sure, it's good for the planet. but it's the also important for business. >> well, yeah. liz: and it appears to be working here at least in that case. >> yeah. i mean, first of all, you know, those customers that we're selling to, those are commercial trucks. those are with uses, construction equipment right there at the hart of the u.s. economy. our customers count on us to provide the right solution for them to run their businesses and serve our needs. and then we looked at how we grow our business through meeting those varying customers' needs.

now more than ever our customers want us to bring them a portfolio solution that'll meet their needs today, and and as those needs evolve and understand how to help them navigate the change that will be ahead. liz: you guys do, amidst all of the good news, have a little bit of a pr problem. last year you were fined close to $2 billion for doing kind of an end run, allegedly doing an end run around the clean air act. and, in fact, that fine of $1.6 billion was a record. and, you know, that, to me, does not look good. it makes it look like your company was trying to figure out a way not to comply9 with the clean emissions structure that the federal government is trying to do. if how do you convince shareholders and your customers that you're really serious about this now. >> yeah. you know, cummins has and continues to be committed to emissions compliance. and, you know with, we first disclosed this review that was

being done by epa and carb in 2019. we worked collaboratively with them to answer the questions and, you know, there was no evidence of wrongdoing by our employees. but these regulations are complex, and we work with these agencies every year to certify our product, to partner on what future regulations look like, and we needed to get certainty and move forward. so it was disappointing, certainly, the size of that a fine. fortunately, we are in a strong financial position. we general a rated record cash flow last year, and we're able to continue to invest in our strategy, seeing strong demand from our customers if for products today and, you know, we are continuing to make these beg investments to meet our customers' needs and to ensure that we can help decarbonize our industry. liz: well, jennifer, we'll watch. and i agree, i think that when you spend a lot for r&d, that means you are serious about improving the technology and looking forward, modernizing. and it's good to see, because i had -- [laughter] i had a puegeot diesel back in

college with about 150,000 miles on it and, boy, did it chug out a lot of black smoke. that's not the diesel for today. >> no. liz: so thank you. >> yeah, certainly not. thank you,. liz: good to see you. all right, it's a pivotal day in the race for the white house. you're looking at people casting their super tuesday votes. right now this is greensboro, north carolina. president joe biden and former e president donald trump could actually be within striking distance of a 2020-style rematch by the end of the day. we will tell you what you immediate to be watching as the polls close. -- need to be watching as the polls close. plus, what's a few billion dollars between friends? well, a lot. turns out when you're topping the world's are richest person list, who's back on top of these three guys? we'll give you the answer next. ♪ you're a rich girl and you're going too far -- ♪ but you know it don't matter anyway ♪

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♪ ♪ will. liz: okay. we are three hours and and, i don't know, 32 minutes away from the first polls closeing on this super tuesday. 15 states plus america samoa, the territory, holding primaries today. you're looking at live polling stations in greensboro, north carolina, and on the right awe

aurora, colorado. there are 854 delegates at stake in the gop race between the former president donald trump and former south carolina governor nikki haley. trump has a 273-43 lead, but there are not enough delegates either way, not enough up for grabs for trump to clinch the nomination todayful what -- today. what's really at a stake this super tuesday then? if let's take you there live the find out from fox business' grady trimble who's outside a polling station in ashburn, virginia. grady. >> reporter: hey, liz. and both republicans and democrats know how important this economy is this election. it's something we hear over and over again went we talk to voters. it's also something the biden administration talks about regularly, pointing to that the fact that the inflation rate is coming down and wages or real wages are going up. in fact, just last hour the president held a press conference where he announced a task force to lower prices.

so the biden administration is hitting it hard. but when we talk to voters here, especially republicans, they're still not happy with the state of the economy under biden. >> tear handling of the -- their handling of the economy has been catastrophic. so we have, we had very low inflation before he came into power, and immediately inflation if started to go up. >> even if i am making more, i feel like on aggregate it's less spending and purchasing power than what i would have maybe even 3-5 years ago. >> i look at four years ago, and we were, you know, we were better with off four years ago than we are today. >> reporter: and former president trump is hoping voters will keep drawing that contrast between how they felt financially under him and how they're feeling now. he talks on the campaign trail including last week here in virginia about the lower grocery prices, gas prices and interest a rates when he was in office. and you heard it there from the folks we talked to.

in many ways that message that he's giving is resonating. for her part, former south carolina governor nikki haley is also promising to get the economy back on track. she often blames rampant spending by both democrats and republicans including by the previous administration, and she says it's time to put an accountant in the white house. liz, we're in loud. en county -- loudoun county, virginia, essentially a suburb of washington, d.c., and haley is really going to be relying on strong sport in suburbs of d.c. like this one as well as in the richmond area if she wants to have any chance of winning this state. but i'll just tell you an ec e doteally from the voters we're talking to today, we're hearing more support for former president trump than we are for haley, and i do think the economy is a big part of that. like i said, the voters can just look back at how they felt in their pocketbooks during the trump administration. it's a little hard harder for the former is south carolina governor to do that.

liz: yeah. well, again, 16 different -- well, 15 states and america samoa. we don't forget how. -- forget you. [laughter] this is a very, very important game of inches, and a couple more inches today. we hall see. grady, thank you. >> reporter: yeah. liz: can i call an audible here? i want to show the dow, if we could. i know we're going to get to these dialysis is stocks, but the dow jones industrials right now is down 521 points. low of the session, 532. we talked a lot about at the top of the show what's e at stake here. listen, we've hit record after record. yeah, a couple of days of downward moves. at the moment, just to give you a sense of what is dragging down the dow, the dow loser here is intel followed by salesforce, microsoft and apple. all right, now let's get to this: ozempic doesn't apparently fix everything. that's why shares of dialysis service providers or are jumping

today with devista hitting a report high. the latest data from novo nordisk shows chronic kidney disease patients did not benefit from the diabetes weight loss drug at the level that was expected. baxter has reversed a little bit, we'll call it flat a at the moment, and another right now up 11.5. davita gaining 7%. novo or nor disk is down today by about 3% but it's up 76 over just the past year. let's look at stitch fix. it's hitting a record low after the personal styling service apparel company low everied its full-year revenue outlook. active clients fell 17% year-over-year, and the company said it expects that weakness to continue in the back half of the year. the stock is tanking 20% right now, down to $2.63. advance micro devices, again, a huge winner over the past year,

down about 1.5% this hour but off the lows of the session. here's what happened, the chip maker failed to get its made for china chip past u.s. regulators. bloomberg reporting the commerce department rejected the chip because it was still too advanced for china even though amd designed a lower performing one. of course, the federal government says that the u.s. chip makers cannot send hair west -- their best intellectual protocols and intellectual information within hose chips to china which will allegedly promptly steal them. well, the world's richest pan on the top of the list at this -- man on the temperature of the list at this hour was the world's rich ban back in 2021. amazon found or jeff bezos has catapulted back to the top of the bloomberg billionaires' index surpassing tesla ceo elon musk. that according to bloomberg. bezos' net worth increased by $23 billion this year. the e e-commerce if giant shot

up 14% in 2024. musk's net worth has dropped by $31 billion as tesla has stumbled about 27% year to date. and lvmh chief bernard if around know, musk and bezos rotated places, bernard if now worth about $197 billion. well, the sky was falling for new york community bank over the last two months and horrifically down the last two sessions. last two months the stock down 68%. the regional bank with major commercial real estate loan problems seeing, sure, a bit of relief at this hour. but will that last? former fdic chair sheila bair is here to tell us if new york community bank's problems are about to spread like a virus or if possible contagion can be contained. walmart and 3m at the top of the dow 30 heat map. just a few names at the very top. "the claman countdown" is coming right back.

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liz: embattled new york community bank right now is actually looking pretty decent, up about 16%. now, that may look like a significant gain, but it does not if erase the losses it hasp endured year to date -- has endured year to date. it's fallen about 68% after new york community bank with posted a surprise fourth quarter loss of $260 million at the the end of january. but concerns grew last week after its new leadership found material weaknesses in internal controls related to its loan book going way back several years. and, of course, the company had to cut its dividend due to ec exposure to the commercial real estate hones. the rating on the bank which largely caters the new york city landlords was cut friday to junk by fitch and then moody's agency slashed new york community

bank's deposit rating for the second time this month to below investment grade. new york community bank with, which acquired failed signature bank during the regional banking turmoil in 2023, is now facing an uncertain future. will it need a lifeline from the fdic, the federal deposit insurance corporation? if joining me now in a fox business exclusive is the former fdic chair sheila bair. well, the way this is going, sheila, is that around the corner where the fdic is going to have to step in and say, heying everybody, it's fine, we will make sure to ensure all your depositors, each up to $250,000? -- insure. >> well, i certainly hope not. i mean, that would be surprising. i don't like to make predictions about whether banks are going to fail if or not can be. [laughter] but i would with observe that what the fed jutte a couple years ago approvedded this bank to acquire flag -- [inaudible] which increased its significantly. and ask and occ approved it to bid on signature's deposits and

some of its assets. so presumably, both of those events involved a pretty deep dive into the health of the bank. so i'm assuming they felt by approving those transactions, they felt the bank was in reasonably good shape. so all of this is coming out now is surprising and distressing. i've still got to think they think this bank's going to be a survivor or they wouldn't have approved those transactions. liz: could they be wrong? [laughter] we've seen during the last financial crisis that the rating agencies were either wrong or turned their heads the other way. >> yeah. yeah, yeah. well, it is, it's, it can be challenging to know for sure. i mean, i think one issue with this bank -- and we're seeing this with the other banks, big and the smaller regional ones as well as the megabanks, that they're underreserving for the commercial exposures. they're looking at past history which is low in the last several years, but that predated the

pandemic when you had this huge shift to remote and hybrid work which is creating these high vacancy rates especially in office which is where, you know, urban offices where the major distress is. so that's a problem, clearly, that new york community bank did not seem to be on top of. they seem to be -- they've added a lot of their reserves, they've changed management. hopefully, they're on top of it now. so far they seem to be keeping the deposits. so i'm sure it's getting more expensive for them to keep those deposits, so we'll have to see what happens. liz: the funny thing about banks is that they can have all their numbers and all of their money on the books ready, dry powder for anything like that. however, there is also that psychological component that they are vulnerable to -- >> right. liz: -- and that is depositor runs. >> that's right. liz: i am not i saying that is happening right now, but new york community bank deposits, they have said our deposits are healthy, we haven't seen degradation there.

you know, if there's just something that spooks a flock of birds, could be the flick of a fly's wing, they all run. there's nothing you can do to get them to go back in the other direction. >> yeah. liz: how important is that psychological goes ifer the run -- depositor run, and what triggers that type of thing? >> so i think we need to distinguish between insured deposits and uninsured deposits. insured goes deposits even for very sick banks, those are sticky. the fki are c -- fdic's got a perfect record, and that's good. main street, households, you don't want them to have to worry about i. but uninsured deposits can be unstable. we saw that during the great financial crisis when i chaired the fdic. we implemented a temporary program to stabilize the larger deposits which were these business transaction accounts. so these are transaction accounts of businesses and other organizations use to bring, you know, money flows in, money flows out to pay employees,

vendors or whatever. they're almost always above the insured deposit levels. and we were seeing flight to these too big to fail banks during the financial crisis, and even very healthy banks -- the smaller ones were healthy, back then it was the problems of the big banks -- the uninsured were still going to the megabanks because they figured we'd already pretty much said we were bailing with everybody out, citi, even the sickest ones. so you're seeing that happen now. and that's a real problem. the vast majority of regional banks, i think, are well with run and healthy. but uninsured depositors won't be sure. if you have another failure and there's exposure, you're going to see this kind of flight again which is really distressing the regional banking sector. liz: you wrote an op-ed in "the washington post" last just month, and the -- just last month, bank failures are looming, make sure executives have kin concern skin in the game. >> right. liz: at the top of this interview, you said i'd be

really surprised if new york community bank had real problems, yet you're saying bank failures are looming. what evidence are you seeing? >> well, we have 4500 banks in the country. i do think there's going to be a handful of -- i don't think they're going to be the smaller ones. i would be surprised if new york community bank is one of them. liz: okay. >> but, no, there's some that are struggling particularly with the commercial real estate exposures. and i do think having some additional skin in the game could sharpen the focus of management on prop problem. -- on this problem. and congress after silicon valley bank failed, congress marked that bill up. well, the senate banking committee did. very strong bipartisan majority in support of it. now it's just kind of stuck there. so i do think that's something that, yes, for this handful of banks that need to be focused like a laser on their commercial real estate exposure, i do think that would provide some additional incentives. but i repeat, the vast majority of regional banks, i think, are fine. liz: okay.

>> we're going to have more failures, no doubt about that, and that shouldn't be a concern to people, at least households, main street if they're under the insured deposit levels. liz: i'm getting a wrap, but with i have to ask you, march 11th, monday, the fed's bank term lending program which was open for regionals to insure and stabilize the depositors one year ago during the sill is con valley -- silicon valley, signature bank with, crept suisse as well -- credit suisse as a well, that's scheduled to close on monday. is that going to be a mistake by the fed? >> well, you know, look, i applaud that they -- you don't want to let these special programs last are forever. i think they may be a pretty -- little premature on that. i would not act precipitously on that, but they're going to, and so we'll see how it goes. they're trying to encourage banks to use the cities do count window more. there's efforts to get weak banks prepositioned assets for collateral at the fed, so, you

know, the normal lending facilities, they can access is liquidity. fingers crossed. a lot of smart people at the fed, so i hope they're on top to of it, but i'd be more comfortable if they left that facility open a little longer. liz: thank you, sheila la. great to see you. >> great seeing you. liz: former fdic chair sheila bair with. from regional banks to the banking group holding refinance talks with elon musk about the debt package that a helped the tesla' -- ceo buy twitter. charlie break withs it next. what are they talking about? what needs to be done? many stay tuned. ♪ ♪ that's a different story. with the chase ink card, we got up and running in no time. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours. after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" i'm thinking company wide power nap.

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liz: well, not only has tesla ceo, elon musk lost his title as richest man in the world, his cyber trucks are also running amok in l.a. last sunday a tesla cyber truck crashed into a cush right under the iconic beverly hills hotel sign. police say the cyber truck collided with another vehicle. not like the truck took over on its own but this leads to a segue tesla ceo elon musk about he might be on a collision debt with banks, stuck with x debt as

they financed his takeover of twitter. charlie gasparino has the story. >> do these thing drive by themselves? liz: some of those. that one was not. >> that was an accident. liz: that was an accident. >> is that his fault? liz: no that is not elon musk's fault. there was one where the steering and brakes failed. >> everyone of his cars that crashes causes headlines. what we do know the story broke in the journal i believe it was bloomberg, banks are having talks to renegotiate their debt on twitter. remember, he took out $12.5 billion of debt to make the twitter purchase. here is what -- i did a little research, talking to people that know him, know his financial advisor who handles a lot of these things, this stuff, what we understand it is pretty simple. musk's entire empire is built on tesla. if you see some problems with tesla, you're going to see banks on anything else that he has

taken out debt on try to renegotiate. now, that's what we have here. if you look at the year-to-date, not year-to-date, one year performance of tesla, it has done great over the last five years, up 800%, that number sticks in my head but over the last year has not done very well. on top of that he incurred a lot of debt with twitter. on top of that twitter is not exactly a hugely profitable operation. put all that together, banks get scared if you have a lot of debt out to them. 12.000000000000, billion, is lot of debt. >> but the actual purchase price was 44 billion. >> there is stock involved. a lot of stock. he actually sold some tesla stock to finance that. the question how much more do you need going forward. that is why you see the banks doing this. i will say this, the people that work for him, his financial team, from what i understand they built in a lot of protections in the past and this guy jared, ring a bell with you?

liz: no. >> he is his main financial advisor. he cut some pretty tough terms with banks. so, my guess is the banks will ask for this. my guess is that they may get a few things around the edges but you know, listen, they're elon musk partners and they're not looking to annoy him because he always seems to come out on top and from what i understand he built a lot of wiggle room into these bank covenants that they don't have a lot of, i guess, a lot of stroke to make him conform to new, wickedly new terms. liz: birchall is former goldman sachs banker. >> he is his financial advisor. liz: and neurolink. >> from what i understand he is the guy that does all these deals. point out musk's people did not want to comment when we ran all of this by them. i think it is another blip for elon so far.

listen, if tesla's stock goes down another 20%, you're going to see some more renegotiations. liz: charlie also, thank you. >> okay. liz: mr. gasparino. the dow lost 532 point, right now we're down 40 2. nasdaq is down over 1 1/2%. powell is set to testify in front of the house financial services committee about the state of our economy. today's countydown closer agrees with the fed chair that rates should remain higher for longer. the con looks pretty strong. you should buy company with products that people are crazy for. you find stocks that do that. we have a chief investment officer of shine wealth

management, robert schein. figure out the who makes them and figure out the stock behind them and buy them? >> the late great charlie monger, warren buffett diversify with american businesses. weight loss craze, look at companies like eli lilly, it is the new nvidia of pharmaceuticals. it could be a soon a one trillion dollar market cap because of that. liz: the stock is on sale today. >> so is all the market. liz: for eli lilly and say amazon because of prime,. >> strong, prime, everything else. liz: people love that. berkshire hathaway which owns0 plus businesses among them, things people love -- 70 businesses about. fruit of the loom, justin boots or dairy queen. >> keep in mind markets are down. we have a war chest for $170 million, for berkshire hathaway he can go shopping if

he needs to pick up some of those names. liz: you think those names, you think they are prices that are fair right now? the p-e ratios don't look like you are at incredible highs? >> they have had quite a run. be patient. let them come in a little bit. add them to a portfolio. take a long-term view, five years out you will be very happy. liz: you do think the fed tomorrow will make news or extremely cautious? >> maintaining optionality. the fed is riding data dependent. higher for longer unless something breaks. that's what we've been saying. liz: robert shine, thank you. i know 300 points down for the dow, it is way off session lows. [closing bell rings] tomorrow, the the boston celtics co-owner, bain capital senior advisor. ♪. larry: hello, folks, welcome to "kudlow," i'm larr