welcome to "power lunch. alongside kelly evans i'm tyler mathisen stocks higher as ubs rescues, so to speak, credit suisse, but bond holders getting wiped throughout and they are not happy. the credit suisse bond holders that is. the unhappiness a common theme in the story europe upset with the u.s. and a lot of people are blaming capitalism we will explore all those issues and more. >> including tech layoffs. a short time ago amazon saying it will cut 9,000 more jobs, apple making other cuts elsewhere, trying to remain the

only tech giant not to have to cut head count let's get a check on the markets. dow up 400 at the highs, 100 points off that. the nasdaq under performing, russell rebounding after energy and financials weighing hard on that index of late to dom chu to kick things off for us. >> we'll kick things off with what's happening the big global banking story, credit suisse and ubs. there will be one major publicly traded swiss bank and that's after ubs agreed to take over credit suisse as tyler points out. it was a government and central bank brokered deal over the weekend. now cs shares have lost half their value dropping dramatically after the deal announced. certain bond holders wiped out equity holders getting a fraction of what they were worth on friday. controversy building there here in america, new york community bank corp jumped 32% you can see there, just up about 34%. the federal deposit insurance

corporation, fdic, announced over the weekend, the bank subsidiary flagstar will assume half of the deposits and some of the loan portfolio as well as about 40 of its former branches. nycb up 34% on the deal to get some of those assets from at least what's happening over here with signature bank. let's get a check on the gainers, caterpillar, honeywell, dow, leading the way higher, the older industrial type material companies. united health the biggest point contributor to the upside. tyler, i'll send things back over. >> thank you very much. the saga in global banking the market doesn't seem to go more than a day without another major headline or update the latest the deal to save credit suisse, if you can call it that. let's first start from the beginning. it all started with the collapse of silicon valley bank a couple weeks ago. spreading contagion fears here in the u.s. until the fed stepped in to backstop depositors there

the contagion spilled into europe and credit suisse losing its chief backer leading to a financial sell-off there both the fed and the european central bank reassuring investors the system was sound major u.s. banks stepped in to deposit $30 billion into a struggling regional bank here in the u.s., first republic, and now ubs buying credit suisse to prevent its collapse here now to discuss the view is our -- of the banks and more is stephanie link glad you can join us today great to have you with us. >> thanks for having me. >> so is the fed to blame for this because they made money too cheap for too long and then lots of banks got caught holding long-term mortgage backed and treasury securities that turned out not to be worth what they thought they were going to be? >> yeah. i think a lot of it is the fed's fault in terms of the speed of the rate hikes you talked about, but tyler, if you step back, at

the three failed banks, they're company specific issues going on, right. if you look at credit suisse, we have all known for 15 years that company and that bank was in trouble because the regulators overseas didn't really regulate and the capital levels were so much different than that of the u.s. right. so credit suisse has always been kind of a problem and has been for a long time. on silicon valley, it was a concentration issue. a mix issue. 62% of their deposits were venture capital and that's really risky in addition they didn't have a risk officer which is incredible to me, and then, of course, they had a mismatch on their bond portfolio and that is directly tied to the fed and them raising rates quickly. signature bank, it was crypto and they got into crypto in the ninth i thinknning if you will. i'm not going to say there's not going to be more and the contagion cannot happen, it could happen we're all watching first

republic to see how that whole thing happens. i do think that the sifi, systemically important banks, the large banks, are very well capitalized and have almost excess of $400 billion in excess capital and i think they're gaining share unfortunately from the regional banks. >> do you think people understand that when they put money in the bank it's really not there? >> i think it's very confusing for sure the bank sector is a challenging sector to follow as an analyst and a portfolio manager and i've been doing it 30 years it takes a long time to understand certainly people that put their money in, maybe not are as familiar with how the whole thing works, the plumbing works if you will. but as i mentioned the large cap banks are very well capitalized and very diversified, and they're very technology sav vy, by the way, as well.

if you're going to look for an opportunity in terms of investing i would encourage that part of the bank sector or, by the way, some of the preferreds in the large banks are really attractive in terms of the yields that you're getting. >> really? >> yeah. if you look at -- if you look at pnc and you look at wells fargo, like 6, 7%. >> is that now in question with what happened to the additional tier 1 bonds, whatever you want to call them people are going wait a minute, if the -- if the capital structure isn't what we thought it was would preferreds be next? >> well, i don't think preferreds are going to be next. i think if anything, the common equities will lag but the preferreds are fine, at least in the large banks. i talk about the excess capital. that's important that's so much different than the regional banks and what their excess capital was. >> right stephanie, you're so good at stock picking but where sort of

use innings or cycles, what's going on with the market broadly? are we looking for stocks to do well in a bear market? looking for stocks that can do well if we're seeing react sell rate of tech because of fed liquidity and the positive not have i don't understand what paradigm we're in right now? >> it's really, really hard this year, kelly, it is i've been doing this a really long time. here's the issue we have 3 to 3.5% gdp growth right now in this quarter, right. i mean, the momentum in the economy actually has accelerated, driven by core retail sales, some better housing data, which is tied to lower interest rates, as well as jobs, initial claims, right. they're stubbornly below 200,000 and that's a great thing that's the good thing. the bad thing is we've got 5.5% headline inflation right. and the fed we know wants to get that to 2. you have to factor in what the fed is do and why i think this

week is so important wednesday is so incredibly important because we don't know what they're going to do usually fed meetings are very well telegraphed by design because we know powell wants -- doesn't want to surprise the market but this one is a tough call whether they pause or go 25, doesn't matter the underlying momentum in the economy and the inflation is still there and that's something they have to deal with and so i think you're going to continue to even if we have a pause on wednesday, i think we're going to continue to see them raise rates down the road and that to answer your immediate question is what makes it so hard because there's so many push and pulls here i just think you want to have -- how i talked about the barbell approach having some cyclicals and some defensives. a couple years ago i started with that theme. last year i went all-in cyclicals because i thought we were going to see the recovery, and it worked but this year have more of a balance. you want to look at some of the beaten down technology stocks, which they're not even beaten down anymore, but at the same

time have some exposure to some of the industrial companies because they are benefitting and going to benefit from better capexand onshoring and that kind of theme there are a lot of areas you want to have exposure. i still like the consumer. they've hung in amazingly well in fact, a new position i bought last week was tjx. >> talk to us about real estate because et that seems to be a vulnerable area at a time of high interest rates. i looked at mortgage rates this morning they're above 6% and i think in the portfolio of first republic, which is today's problem child bank, they got a lot of real estate exposure if i'm not -- if i'm not mistaken what do you think is going to happen to prices and, obviously, there's real estate, there's housing, there's apartments and commercial, there are malls, office buildings what's going to happen there >> well, i tell you, tyler, i worry a lot about the office

real estate, right that market was really struggling because we're not going back to work 100% of the time, and so i don't think that's going to ever change. i think we're going to have a hybrid model and hurt the office part of the market in terms of the malls, i think the malls are going to be just fine they've kind of reinvented themselves, right, instead of having stores in the malls they have experiences in the malls and i think traffic has actually remained resilient there are going to be noktsz terms of where you can have exposure but within housing, i do think you're going to see, if rates continue to level off here, and we have a terminal fed fund instead of at 6% it's 5 or 4 or whatever that is, rates if they come down, you will see better demand. as i mentioned we got pretty decent housing data in the last week, week and a half, because rates came down. there is demand there and you know, there's a lot of pent up demand because we've had 13

years of under production in housing. we're 5 million homes short in the country. so i still like housing for the long term. i think if you pick your spots in terms of which way you're playing it and actually, back to tjx, that's a hidden housing play because they have home goods, so a little bit of consumer and housing yeah. >> my wife's favorite store. >> yes. >> i'm telling you, i sit in the car. it's all good. it's all good. i look at the sports scores. she looks at the pillows. >> thanks very much. >> that's awesome. >> coming up -- a huge jump in crypto prices even with a small decline today. bitcoin still up 66% this year maybe all it needed was a global banking crisis we'll talk to jack about the sudden resurges there. amazon lays off more workers and apple tries to do everything but. elg ghnowh "re companies a feinrit w enpower lunch" returns after the short

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welcome back to "power lunch. we spoke about it last hour but bitcoin rallying hard up more than 70% this year an our next guest says this is bitcoin's moment and why the asset exists. let's bring in jack mallers, founder and ceo -- have we seen your hair before or has the hoodie typically been up i'm waiting for the business suit to know that crisis is over so i can see we're not there

yet. >> kelly, i got luscious locks but toss the hood on how are we the fed has blown up our financial system hell of a monday. >> do you think -- let me ask you this way or put it this way, a banking crisis is deflationary, and so when i see bellagi and others say bitcoin may go to a million dollars, but it may be because of the fed's response here. the 2010s were not hyper flation nary, no obvious reason why now wl would be hyper inflationary. >> it's not that complicated there's a market term used here in chicago a lot demand finds supply, what do i mean by that if ken griffin wants to buy the most expensive condo in america someone will build it and put a 200 first floor in miami's tallest building if silver is 1,000 x i will walk in my kitchen and melt all my

silverware and sell it at market if gold is going to rally, elon musk will find more on mars. bitcoin is the only monetary instrument in the history of our species that is fixed. it does not matter how much more demand comes in to the asset class, kelly, no one will ever be able to make more of it two things i will guarantee, one i do and there will only be 21 million bitcoin. it is the only fixed supply asset. it's not that complicated. it's going to go up because everything else can be issued more. >> explain to me one thing why is the supply fixed and is that because someone says it's fixed who could change their mind >> no. it's a great point and question, tyler. it's because it's written in the software and the software is distributed. there is no one person to ask. there is no one person to trust.

the whole decentralization, so you can put pictures and nfts on the blockchain, to fix gaming, no it's decentralized so the defendants of the monetary policy are distributed it's so it's a network of computers that actually defend the policy and instrumentation of the monetary asset. that is not the case ethereum or coin or the u.s. dollar or miami real estate. that is not the case for precious metals. it is the only monetary instrument that has its monetary policy distributed and defended in a sound way. >> forgive me, but you said it's because this is the way the software is written and it is immutable. why couldn't the software be rewriten or couldn't be the authors or guardians of the software write a new software to create bitcoin 2.0 with another

supply of fixed supply of bitcoin? >> yeah. so tyler, i run bitcoin software and someone tried to do this google bitcoin cash after this interview is over. someone said i want to change the rules of bitcoin i may want to create more of a supply i may want to make it faster, do a backflip, may make it store pictures of monkeys drooling on themselves it's a different instrument and when someone tries to pay me my software rules say no, that's invalid that is a piece of poop and i don't accept it because it is invalidating the rules of the system set up over a decade ago. want to create fed now coin. i don't care 21 million of the things that i run and protect and save in and those rules were started a long time ago and that's what the network runs if you change the rules you're creating a different monetary asset and instrument

doesn't matter. >> jack, did you guys have any effect from svb's collapse you're in chicago. i don't know if you had exposure as a start-up or i would imagine maybe some other, you know, colleagues, clients, you name it, what do you make of all this >> well, it doesn't matter, right, kelly, because the u.s. government you either have to default or deflate it. they're backstopping everything. the spigots are wide open. money printer going. it doesn't matter where your money is held. the government is going to make you hold on it no matter what. the only thing clear to us and our customers you cannot hold and save in dollars. there's a new era of the u.s. dollar where inflation will enter a normalized 5, 6, % the days of 2% inflation are over. >> what if you're wrong, the market -- the market is telling us we've gone from having expected 3.5% inflation last year to over 2% now for the next five years it's -- it doesn't see inflation

accelerating look at the swap lines over the weekend. it reiterates the dollar's dominance in the global financial system and if anything we're averaging inflation for the next decade that looks like the 2010s, it was not inflation. bitcoin did very well, it was not an inflationary period. >> but kelly, the swap lines and treating these assets at par that these banks are holding is a load of crap it's a politically correct way -- the swap lines over the weekend were a politically correct way going into an election year for the federal reserve to bail out foreign big institutions and not take care of the little guy in the united states of america. those things aren't trading at par. if they were trading at par when i walked to my bank at my corner and i want my money they would hand it to me and they can't it's a load of nonsense. they have to backstop these things with new money and you're seeing risk on assets, and scarce assets be winners here. you call it inflation because the cpi is a load of nonsense. the government is going to tell

me how the dollar is inflating based on a basket of instruments. like my netflix subscription or caesar salad doesn't tell me how well the dollar is doing or being devalued miami real estate does bitcoin is up over 50% this year telling me the dollar is not inflating. you're out of your mind. i'm not listening to that. the fed and the monetary system is based on trust and they constantly break that trust. it would be the equivalent of a fire outside of my house i smell the smoke and someone tells me no, it's a bunch of teenagers putting on a bonfire, but i hear one siren. i hear one police siren. sure it's a bonfire. now ten sirens and 100 sirens. i'm not going to look outside and see what's going on. i don't believe them for a second you have to be crazy to believe the federal reserve right now. they're full of it and i don't have to because i own bitcoin. there's no one that can deflate my instrument. i get to hold it, save in it and i know the monetary policy and i

sleep like a baby like the baby face that i am. >> jack -- >> i think you're crazy to believe the fed and swap lines and treating assets at par it's a scam. >> we appreciate your time today. jack maller. >> still to come, the banking backlash corporate america has had its share of black eyes over the past few years, but the fallout over svb could be one of the worst yet. plus a new report from the u.s. revealing that global warming ma tthe -- done irreparable dageo planet "power lunch" will be right back

a little bit of steam. the dow up 326 right now the nasdaq turned negative there. ahead of wednesday's fed meeting let's go to bob pisani at the new york stock exchange. >> europe closed near the highs up near 1% we're not off highs for the day. two big issues that are being debated down here at least, the first one is the deposit insurance matter front and center unfortunately that isn't going to be resolved this week the other issue is the federal reserve and what's going to happen there that's an interesting question

because everyone, tyler, is essentially moved to the dovish side of the issue. you're in the camp you're going to have a pause now or you're in the camp that you're going to raise hike and pause what market wants they want the fed to prioritize the banking crisis instead of inflation and the way to address that is to essentially have some kind of pause. what's very funny is to see that more hawkish position has actually become what used to be more dovish position and that is what we call the dove dovish hike here. the fed would raise once and imply there's going to be a pause here we saw that last week, that helped the belief that that might happen helped bond yields lower here that's more hawkish position people have moved to where jan hatzius is at, goldman, he said we expect the fed, the fomc, to pause at its march meeting this week because of stress in the banking system so kelly, it's a big food fight over where the fed is going to go, but amazing how much people

have moved away from the idea of the fed talking about combatting inflation and more about addressing the banking crisis, at least that's what market wants. the big surprise is potentially if powell essentially stays with the hawkish inflation rhetoric. >> true. bob, thank you. meanwhile over in the bond market let's check on yields rising after ubs bought out credit suisse or forced to the 10-year yield still below 3.5% down sharply from where it was a couple weeks ago and above 4% on march 9th before the collapse of svb sent jitters across the market. >> oil once again lower just above $66 a barrel, down more than 10% in a week the banking crisis weighing here opec plus sources telling cnbc the price decline temporary and oil isn't trading on supply and demand fundamentals. meantime let's get to contessa brewer for a news update. >> good afternoon. french president emmanuel macron has survived a no confidence

motion in the national assembly following a contentious detbate that included a walkout. the margin just 9 votes. another motion by a far right group expected to get less support that would allow macron to go ahead with his unilateral decision to raise the retirement age to 64. four members of the oath keepers, far right wing group have been convicted by a jury in washington of conspiracy in connection with the january 6th attack on the capital. a legal adviser to michael cohen testifying considering an indictment of donald trump robert costello arrived in a government vehicle and a source familiar with the information tells nbc he will call cohen a liar who has been angry at trump for years. cohen in the probe of hush money paid to stormy daniels is at the

courthouse as a rebuttal witness. we're keeping our eye on that situation as it unfolds. >> thank you. >> an apple a day keeps the layoffs away big tech continues to make cost cuts amazon the latest. apple working hard to avoid that details ene meacwh wco bk. the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

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welcome back amazon telling employees it's going to cut 9,000 jobs and apple reportedly trying everything it can to avoid job cuts of its own. joining us to discuss the latest tech, annie palmer, tech reporter and cnbc tech correspondent steve covac. welcome to both of you annie, let me start with you what's going on at amazon? and these cuts are not merely coming from -- let me put it this way, these cuts in some cases are coming from the growth oriented portions of amazon's business like aws. >> that's right. andy jassy, the ceo of amazon, put out this note to employees today informing them that they are going to lay off 9,000 employees over the next coming weeks, and that's on top of the 18,000 rules they've already

eliminated over the past couple months these cuts are landing in amazon's profit engines, aws and advertising in addition they're expected to land in human resources and their live streaming unit twitch. >> so steve, it's not just amazon, obviously. >> obviously, not. >> it's a lot of companies is it as simple as they simply add today many people during the pandemic >> that's a big part of it they hired too many as a percentage of what they had before the pandemic started. apple is the outlier let me give you numbers real quick of the total number of mass layoffs we've seen across big tech amazon with today's numbers 27,000 gone, meta 21,000, alphabet 12,000, microsoft 10,000, apple big fat goose egg. >> apart from profitability what are they doing differently and why do they seem not immune, but maybe a better word is averse to

cutting heads? >> they've always operate forward $2 trillion company, much more leaner than a lot of these other companies. we keep hearing from zuckerberg and today andy jassy, lean and efficiency the name of the game. apple operates that way. a lot of their hiring was in retail which are cheaper employees but when i asked tim cook this a couple months ago how are you cutting costs if you're not laying people off, they're not hiring as much they eliminated a lot of open roles and only -- if they are hiring they're only focusing on the engineering roles and even then the roles are their top initiatives. >> you look at the fundamentals of amazon. they have lots of warehouses with people in them. they have robots in them but apple outsources all its manufacturing. those are not payroll employees of apple. >> foxconn jobs and they flex those. during the holiday season when they sell the most i phones they will bring in tens of thousands

of more workers and scale back when times are leaner. right now they're going through the unique thing because of the covid shutdowns last fall they actually kind of had to scale up at a different time than they normally would, but sales are still going to be down, tyler, year over year we're done with the pandemic booms and so apple is cutting costs to make up for that. sales down 5% last quarter. >> to circle back to amazon, there is -- the shares are down today. is there concern they're cutting from things like aws, which are -- that's supposed to be the behemoth >> yeah. it's hard to tell why the stock is down today because usually when, you know, companies make these layoff announcements we see the shares go up so there's kind of two sides here that maybe the stock is down because investors feel that they just didn't cut enough, they need to cut more, or you're right, it could be that there's, you know, seeing that they're cutting from aws and ads these two growth engines could be an indicator there's something wrong fundamentally with the

underlying business. i'm not sure. >> or even a macro, if you think about it if aws is getting cut, customers are or startups might be going bellyup. >> is jassy vulnerable >> that is a good question hasn't been two years since he took over. bezos still the executive chairman not like he's totally out the door for now, i think he's making the right moves investors want to see. >> yeah. >> go ahead. >> quick word. >> i was going to say i think steve is right that the jury is still out on how much of this lands at jassy's feet and more just him responding to the macro concerns. >> maybe what was done and the bloat that was there that he's trying to fix. thank you annie and steve, we appreciate it. after the break a u.n. report showing the increase in natural disasters here in the u.s. is one of the many side effects of global warming. more details. as we head to break we're celebrating women's hert average sharing women leaders in business and teammates and

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>> hurricane winds are getting stronger, common storms are getting wetter, wildfires are spreading faster and millions of u.s. homes sit in the path of all of it. the housing market doesn't factor that risk into home values leading one set of researchers in a new report to claim u.s. homes already exposed just to flood risk are now over valued by roughly $200 billion that has profound future implications on the nation's nearly 12 trillion dollar mortgage market. >> do you think that mortgage underwriting in general is taking into account the risks from climate change? >> to the full extent no, i think there's still more that we have to do and we don't have the analytics to do it. >> fannie mae which backs more than 40% of all mortgages launched its defense hiring modeling firms like first street, jupiter and others to

figure out how to factor climate risk into home values and mortgage underwriting. >> we are interested in not only what current state is of natural disasters and impact for business, what does u.s. housing look like decades. >> first street looks at climate risk from floods, fire, wind, brings it down to an individual property level jupiter studies neighbors and communities. so far judge says they've learned climate impact varies widely across the country but impacts vulnerable communities more than affluent ones and agrees climate risk is not priced in and consumers not aware of potential future costs. mortgage lenders struggling to figure out the financials. >> it is a massive challenge to think about. >> but as of now wells fargo does not factor climate risk into the underwriting. >> to date it hasn't it's something that we're evaluating like the industry is.

>> wells fargo just finished a term as chair of the mortgage bankers association which has a special report from the research institute in 2021 saying climate change may increase mortgage default and prepayment risks, trigger adverse selection in the types of loans sold to the gses, increase the volatility of house prices and produce significant climate migration. >> it's impacting how we're thinking about mortgages and what we need to do. >> reporter: the problem is the models from the different firms as well as from government agencies like fema all vary widely and judge says that has made the project harder than he expected. >> so you're not at the point where you're saying i'm not going to back the mortgage on this home because the risk from climate change is too high >> no, we're not there yet the first step is understanding what the damage will be to each property and the second step how is that going to change buyer behavior and valuation of properties that's a lot of the work we have to do. is it five years away? i'm not sure.

>> but it can't come soon enough new research from core logic shows on the current climate trajectory the estimated number of u.s. homes that will be significantly impacted by climate related disasters goes from less than a million in 2030 to over 62 million by 2050 in value, that's losses of just under $200 million to close to $9 billion in any given year back to you. >> so maybe i'm not understanding something. the person from wells fargo there who said we weren't really taking climate into account, is that in part because to write a mortgage you have to have full insurance coverage on a home so that the lender would then be protected? >> well, we're talking about homes that are not necessarily in a fema flood plane, so if you are in a flood area designated by fema you're required to have that insurance there are many more homes at risk now that's what they're trying to calculate.

>> all right diana, thank you very much diana olick reporting. still to come, the growing schism over capitalism public outrage over the billions spent to save failing banks and tech startups and their renewed frustrations with the system in general. era'd this be corporate amics biggest pr disaster? we'll discuss that next.

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welcome back to "power lunch. it's been ten days since the collapse of silicon valley bank, which kicked off that major reaction across the global banking industry as governments came in to backstop failing banks or backstop in many cases their depositors, it triggered in fact old anner from the -- anger from the 2008 financial crisis. is this another black eye for corporate america? let's talk about it dean for leadership studies at the yale school of management, jeff good to see you. >> how big a black eye is this and for whom >> it's a big black eye for the fed. good to see you too, tyler it's an embarrassment for the fed. this is caused by the fed. yeah, there's some missteps by management, more regulatory oversight wouldn't have prevented this problem the fed had signaled that they

were going to keep rates down through the year, and this has caught everybody by surprise the back stock was soaring until the disaster nobody saw this coming except for a few economists and ourselves. >> the fed's culpability they raised rates as fast as they did, as high as they did, and that banks made erroneous, wrong-footed bets on long-term mortgage backed securities and treasuries which were supposed to be secure is that -- >> yes that's exactly -- you said it well it's a classic run on the bank of course the liabilities, the deposits are short term, and the assets, the investments, are long term. that's the nature of banking nobody watching this show can name two or three banks that don't do that. that's what banks do what happened is, these guys invested in the safest assets on the planet, u.s. treasuries, but never expected they would be devalued as they were because of

the run away fed with the crazy rates. >> they're safe against default, i suppose, until we get up against the debt ceiling, safe against default but doesn't mean they're safe against interest rate risks. >> the fed and every regulator doing their their stress test is only testing every bank in the country at a 2% rate we're well above 4.5%. they want to pass the stress test we see inflation down in every commodity. we're 70% to 95% down in all commodities. prices are falling business investment is down. it's just that labor has not collapsed. it's an antiquated 1930s, 1940s notion of the phillips curve there's no relationship between the level of employment and inflation. they're still beating up on people because they have jobs. >> to be clear, we asked the question, what's broken with capitalism what's wrong with capitalism the answer is the government what's broken?

is it the private sector the government they have to be bedfellows in the modern economy and what does this then point us towards is the fix >> you're right. tyler tried to get me to this and i want back to the government there are people out there finger pointing from the left saying bankers somehow got bailed out by the government this is not taxpayers bailing them out, this was the fdic, who is the banks themselves bailing these guys out then on the right, you'll see people talking about woke capitalists out of control these were anti-woke investors, so many of them. some of the biggest maga supporters are some of the beneficiaries who caused this bank run so, it is the government and the federal reserve that recklessly caused this problem. you have a federal reserve head who is not an economist trying to prove their chops >> one thing that perplexed me, it's not on the taxpayer, it's

not on the taxpayer because of the fdic back-stopping here. but the fdic's fund is funded, is it not, by fees charged to banks. where do the banks get the money to pay those fees? they get them from people who have money in the bank, right? if you think it through, doesn't it come back to me, the taxpayer, one way or another either in lower savings rates or higher mortgage rates than i would otherwise pay? >> you're right. the money doesn't grow on trees. >> no. >> it doesn't come out of the ground it comes from taxpayers and investors. that's what we saw when jamie dimon led the bailout 25 years ago of long-term capital bank, we saw him this weekend. he's the jpmorgan of the modern world. the shareholders of those banks rushed to the rescue goldman sachs, citigroup and the rest are trying to prop up this

sector the private sector bankers are looking heroic the federal reserve looks like they're caught in a bureaucratic -- will rogers once said, if you want to get out of a hole, stop digging that's what the federal reserve should do, stop digging already. they have dug quite a hole >> we have to leave it there jeff sonnenfeld, always great to see you. >> thanks. up next, we'll trade some key movers three-stock lunch before we go don't miss it. upwork... with upwork the hiring process is fast and flexible. behold... all that talent! ♪ this is how we work now ♪

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let's finish things out with three-stock lunch, trading the big movers of the day like amazon, which is lower after those 9,000 job cuts, it was named a top e-commerce pick by morgan stanley amd is up, and raymond james is up 4% on the year. let's trade these with ava welcome. let's start with amazon, down mover on the job cuts. what do you do with the stock? >> it's a buy. this is an overreaction. to us, it's not the bad news, they have additional job cuts. no other company in the u.s. has created as many jobs as amazon they went from 56,000 jobs to

1.6 million in ten years and in the last five years, they increased jobs by five times in fact, in some of these years they had more jobs than the rest of the s&p 500 combined. so, it's not bad news to us. we also need to realize this company has the second highest revenues globally. only after walmart they have 515 billion in revenues, strong revenues. in this market where we have a banking crisis and people are looking for a safehaven, i think it's not a bad stock to own. also given the fact the stock right now is near its three-year lows >> let's move on to amd. what do you think of that one? >> amd is a hold largely because the stock appreciated 50% year to date i like -- i love this sector but i'm concerned of the appreciation and the fact that they have the weakest -- among the weakest margins in their category they have a margin of 5%

compared to the rest of the category of 30%. that's a big differential. i'm concerned given the strong appreciation year to date and how much that can continue going forward. i wouldn't encourage to add to this position, maybe hold, or if you made a good return on this investment take some profits off the table. >> enphase, which is a buy for you, ava this is a name that people always say is perfectly positioned to benefit from the energy transition, but the stock struggles, it's high beta, whatever you want to call it why would you pick it up here? >> again, the stock has dropped 40% in the last four months. that corresponded with a decrease in oil prices i think we have the fact that the european market will continue to buy solar energy regardless of the low oil prices if you factor that in and the fact that they have among the

strongest fundamentals in the category with a revenue of 26%, and the fact that they -- given regardless of the strong revenue growth, their fundamentals look great and i'm bullish on them regardless of the low oil prices >> do you want to give us your thoughts on the market is this the calm before the storm? >> i think we're all looking at the next fed meeting i think we'll see a 25 basis point rate hike this time. that's largely factored in the evaluations right now. i think things are to the looking that bad regardless of the banking crisis >> ava, appreciate it. >> very interesting day. boy, will wednesday be interesting. >> yes, it will. fed meeting state farms tomorrow on this show we'll get the decision and the press conference and i think we get the dots

>> that's right. >> they told bankers the fed wouldn't hike the rates a lot and then said they would good luck to them in the meantime >> it will be a fascinating day. thank you very much for "power lunch. glad you could join us >> "closing bell" starts right now. welcome to "closing bell," i'm mike santoli this make or break hour begins with stocks steadying after a dramatic weekend of forced bank mergers in europe and central bank backstop measures globally which all brings us to our talk of the tape. can this calm be trusted suspense is building for a fed decision, a choice between staying the course on tightening or backing off for fear of more financial upheaval here to help us answer those questions is camryn dawson good to see you. >> good to see you >> you know, the s&p 500 is down about 1% since the day before silicon valley bank buckled. it's up 3%