valuations all the time everyone knows with the right marketing and make the company publicly everyone knows in the public and clambering to get it and critics call this version of venture capitalism vulture capitalism. they're birds of prey and today's venture capitalism scavage on living human beings and often small investors pension funds paying far to great of a price to get a piece of the action. they e need a come upance, folks not a bailout. liz: yeah, that b word. charles, we fin final hour of trade and it's crucial you stay till the closing bell rings and we're getting headlines and markets mostly in the green at the moment, we have this,

charles shwaab putting out numbers to quiet investors and 4% fall in total client assets and that may not seem like a lot in the grand scheme of things but the issues are those are from last month, february. they just put them out. charles schaab shares are stabilized and the ground is moving beneath investor's feet and the dow gaining 330 points earlier and had been lower by 284 points so pretty dramatic swing of more than 500 points here, is at the moment up 157 but it has crossed the unchanged line 95 times. is this is a very jitter reigns leay marketand s and -- jitteryd nasdaq is up 163 points or 1.5%.

it had been down 156 but as high as 187 point gain and the russell 2000, that one's struggle and it's been in the red most of the session even as the others have been climbing. we've got the russell down just under 1% or 14 points in the 14. what began friday with the collapse of publicly traded silicon valley bank, this is the second biggest bank failure in u.s. history not only has been followed by the forced closure yesterday of new york signature bank, a bank that lent mostly to commercial businesses and private equity and very little, if any, to do with startups in silicon valley but now has put multiple regional banks on thin ice. we can show you some of the stocks now and they're still in the red, even after the federal reserve. fdic and treasuries swept in over the weekend to make all depositors in both svb and signature bank hold, you can see on the screen shares of other

regional banks first republic down 49% off the lows. let's be clear about that. western alliance down 41%. zion's bank dropping 23%. metropolitan bank holding down 36%. and customers bank, down 14 or 15% or .s they're swooning and in some cases depending on the second cratering. why? as soon as news hit last wednesday, depositor were rushing to pull money out of svb at news that the bank sold bonds to raise cash. see on the one week charts of the regionals that other similar sized banks experience add wave of panicky customers yanking money out. you can see the big dropoff starting around thursday and shaking wednesday began dropping off thursday and big plummet this morning and slight comeback at the moment. let's take a live picture if we can at the doors at silicon valley bank's santa clara

branch. that's the one on the left hand side there. those doors you see, now locked forever. then on the right, we've got first republic branch as that bank fights to hold on through the crisis. who's fault is this? should the government have save the depositors and where's that money coming from to rescue them? what are the implications for the banks that have shares plummeting and account market with hold the stocks and did the banking crisis give crypto renewed life? we have team coverage, former fdic share sheila baer and investor kyle bass who predicted and profited from the subprime mortgage crisis one of sill chronovalley's venture capitalist and wes shroll who is the ceo and startup fetch. ubs america robert wolf who ran that bank through the last banking crisis, fed and bank

risk analyst chris waylon, and long time nicey floor trader chris hawkeye and right and left they're still in many cases being halted depending on the second and we begin with robert wolf and chris waylon. chris, are we in the clear yet? >> no, not by any means and we've seen modest boosts by the government. when the fedex up and downed balance sheet and messed up the bond market and we moved interest rates six points. any first year analyst knows that if you have that kind of position, you're insolvent. liz: chris, which banks look particularly vulnerable right now to you? look, $42 billion came out in a single day from svb on friday. >> that's right. 40% of balance sheet was in mortgage-backed securities and we learn from long term capital management, those are very dangerous securities and extend their duration when interest rates goes up, price goes down. they were traited in the 70s so

take a 30 point loss if you solve them. liz: i mean, not a laughing better but i get it. >> who has risk? banks with large exposure to mortgage-backed securities. liz: okay, robert wolf, to that point that $42 billion came floods out of svb. that didn't happen during the 2008 crisis. i mean, washington mutual, which ended up going under, the big news was that it had $16 billion flood out over ten days. what caused this? >> liz, bringing me back to one of the worst weekends i was ever around and we were talking during the new york fed at the lehman crisis. that was totally different and money setter bankers around the world with global contagion and would have brought the world into a deep recession. these are not global banks and not interconnected but this is the opposite. this is a regional bank that was in my opinion totally mismanaged as chris said the way they looked at their asset and liability mismatch is like the snls of the '80s with deposits

and real estate. the other thing that is new to us is digital finance and digital media for what you said, 44, 42 billion left in 24 houser. we were at ubs15 years ago, you couldn't even take out $10,000 in a day never mind $40+ billion. that would have taken months. liz: everyone is moving things around and easier to do. >> via an app. liz: chris, i get the fact that svb went down and selling bonds at a loss and trying to do a capital raise and timings was horrible. arguably the management made huge mistakes but why is first republic down 50%? they've got my mortgage. i mean, they're just a normal bank. they don't have any relation in that regard? >> well, they're relatively small and you have to understand, there's been a consorted campaign of short selling rumors and social media plague a huge role they didn't play ten years ago and unfortunately silicon valley bank fell first and signature

bank had problems with crypto as you know and even though they were small in dollar terms, they scared people. the regulators are telling everyone in the country that crypto is bad and had to stand up abridge bank on friday and sunday. this happened in days. liz: guys, i need to quickly jump to kenny p polcari. all of the names were halted and give us a checkup at this moment and what's going on? >> sure, right up till now we had first republic halted about 31 or 32 times and western alliance was halted 40 times and other ones trade on nasdaq and i'm not able to track those as quickly and two on the new york stock exchange, that was between 9:30 and 2:15 or so. nothing has happened between now and then i don't think but very, very volatile this morning as you all saw and we all saw.

this market came under pressure and to chris' point, the social media over the weekend and vultures and shorts and vcs saying take your money out and create it had or exacerbated the panic this morning. liz: all right. but just for like a housekeeping point, can these stocks be halted again in the final half hour of trade? >> sure, because they're volatility halts and they can absolutely be halted going into the belt if it gets antsy again as it was this morning. my sense is they've come down and i don't suspect think should but could. liz: robert, who should be fired at svb and word was management took out a lot of stocks in the week before and could be a regularly scheduled sale, but regardless will that money be clawed back? >> it has to be. they were making sales in the last month and 10v5 and predicted to be done, you have to take it back. but also 72 hours ago before

friday, they could have raised money at a 30% discount with warrants. they totally messed up. totally messed up this company. liz: okay, chris and robert, thank you very much. stay right there. fd ic ensures bank deposits up to $250,000 per customer was key in stabilizing svb but signature bank, we mentioned, collapsed yesterday. how much more intervention can and will be done to sheila bair, chair of fdic during the 2008 financial crisis and author of money tales and provides financial literacy lessons to children. i think a lot of adults need financial literacy lessons at this point, sheila. again, just crazy. at the moment, check it, dow jones industrials up 91 points so losing a tiny bit of gains we saw at the top of the hour and keeping an eye on it. sheila, from what you can see right now with contagion still arguably in play with some regional bank shares face planting, how stable is the regional banking system right

now, what you can tell? >> well, i think it's reasonably statement i don't, you know, i think the problem with these systemic risk exceptions is that they kind of suggested of something bigger and broader going on. i was listening to the commentary of your earlier guest, silicon valley bank in particular, that was an unusual situation and unusual deposit base, rapid growth, terrible interest risk management and there's just a lot of idiosyncratic things about that bank that led to the failure but with these systemic risk exceptions and package with signature, it suggested there's something broader going on. i don't know if that's the case or not, but the markets obviously think there is and more troubling and enemies sure depositors think there .s i think we need better clarity and communication on this as to what the concern is. if there's a concern that we'll have wide scale runs on uninsured deposits and i don't see that.

if the regulators are seeing that, they do something truly systemic and not just the one offs for a couple of banks and that puts pressure on the other banks with systemic risk designation. liz: sheila, treasury secretary janet yellen said on face the nation yesterday said no way there'd be a bailout of shareholders in the banks like signature and svb or bondholders. however, the depositors would be covered. that looks like a bailout to some people because the money's got to come from somewhere. is it a bailout? >> well, it is a bailout. different people define bailouts different ways. i define bailouts -- we have a set of rules and give a lot of support to banks. deposit insurance is one thing we let banks have and they pay a premium for it. it's capped at $250,000. if we change those rules for a couple of banks and then give them more coverage than anybody else gets, or they were entitled to under the law, i think that's a bailout. yes, banks will pay for this. there's going to be an assessment and all the banks pay

into this special acespedesment when you make a systemic -- acespedesment when you make a sis team ick risk acespedes -- systemic risk assessment and nobodies community banks will get a risk exception to protect their deposits but there's a lot of issues if you're in an equity around this and i sympathize with the regulators and had to make fast decisions. but, boy, i think we need some better communication and clarity around why the two institutions were systemic and if there's a broader problem, why aren't you taking broader steps. liz: we thought these problems were solved in 2008. >> that's right. liz: exactly, i want to bring this up, bill akman, the hedge fund guy from perjing management and he tweeted today the fdic needs to explicitly guarantee all deposits now. is that possible? and should we be doing that?

>> again, i don't see evidence it's necessary but even if the banks are okay, fear can exacerbate the problems. we did a transaction account guarantee program during the crisis and seeing problems with business accounts. these were cash management accounts, accounts used for payroll, operating expenses by businesses and need money opaque payroll and the deposit cap and seeing uninsured go from smaller banks to larger too big to fail banks and limited a temporary guarantee on the transaction accounts and worked very well. for whatever reason congress told us we couldn't -- told the fdic they couldn't do that without explicit autho authoritd there's a streamlined procedure to go back to congress and get approval for something like that. that program, you charged for it and everybody got the uninsured protection and not just hand selected banks and if they need to go to route, that's a big if because i don't see it but if

they feel they have a widespread problem, seems to me they should do a broad based program that would be even handed and protecting all the banks. liz: sheila bair. thank you, very, very much. former fdic chair, we really appreciate it. the perspective that sheila has given us is that this is in a way a bailout. i do just want to let people know that literally the second we took it back from kenny polcari, 3:09 p.m. eastern, western alliance was halted again. western alliance was halted again and at the moment, we still have it halted at $27 down about 45%. 45% for western alliance. so i told you, we're keeping a very close eye on all of these developments. it's been a white knuckled 96 hours for venture capital-backed port kportfolio companies with e backed silicon valley bank that

failed. wisconsin based startup fetch had the majority of its money tied up in evb -- svb. fetch's ceo joining us next with the harrowing experience over the last couple of days and on where his money is now. with the closing bell ringing in 44 minutes and the dow up 137. the claman countdown has the startup angle next and famed investor kyle bass. don't move, we're back in a moment on the "claman coun countdown". when you stay at a vrbo you always get the whole home not part of it but the whole upstairs the whole downstairs

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info here. the low of the session fell to $7.46 and right now at $28.22 and down 42%. before we get to our guest, chris, you bought today? >> yeah, great bank. it was down and being punished for being part of the residential mortgage industry and they brought amerihome. liz: it's a nervous moment. >> it's a good institution. they'll survive. liz: all right. the silicon valley bank contagion not only in the hills of california but spread to the midwest, the largest venture capital-backed company if the history of wisconsin is fetch and it's a shopping rewards app with more than 6 million daily active users and the company has significant exposure to svb with majority of funds sitting in the failed banks. what has the aftermath of svb's collapse been like for the tech startup? to fetch founder and ceo wes

schroll in a fox business exclusive. wes, it's been a gut churning ride with all the startups at svb. when was, if you can rewind, the first moment you knew the bank was in trouble and what happened next? >> for sure. it's been a wild last 100 hours or so. as you think back to wednesday night, that was when we got the first inclination that something was going wrong when they announced the need to go out there and do an equity raise to shore up their books. on wednesday morning we saw the stock market reacted negatively to it and we thought they could weather the storm and they're a good company and have been a good partner to us. it was wednesday afternoon after they came out of -- sorry, thursday afternoon after they came out of a meeting with a ceo of svb talking with the venture community that all the sudden we started getting a lot of spook going on. looking at the -- my phone, it was dozens of missed calls, dozens of text messages from

every investor that has ever invested in fetch over the past ten years asking where our -- what our situation was, what our exposure was to svb and happened quick. liz: did you try and pull your money out? you were a gray croft funded startup and did you get any advice and say pull out your money because that's been a controversial startup and svb was the bank of first and last resort for startups and always said yes and suddenly everybody piled on and said we're pulling our money out. jot amount of conflicting advice going on in the first 12 hours was staggering. it was information overload and everyone had a theory and advice would change from minute to minute from each person that was involved in giving advice both internally and externally. we have considered pulling early on but they've been such a good partner to us that we were wanting to hold as much as -- as lon as we could.

we were having good dialogue with the internal folks over at vvb so i would -- svb so we tried to weather it out with them, but once the writing was on the wall it became a time where we had to try and initiate a wire. liz: wes, do you have all your money? that's the bottom line. do you have what was this svb right now? >> as of this morning, we do have it. we're very thankful for the very quick decision and action that was taken by the fdic and the fed for making -- giving us access to it today. but, yeah, it was a hair raising couple of days there. liz: before we go, wes, who's going to -- now that svb is gone, float and lend and bank for startups? >> i will say the amount of outreach we got both from other banks and current banks and current banking partners outside of svb, they stepped up and made sure that we knew they were there and willing to be flexible and wanted to make sure we had

support regardless of what happened in svb situation. i think there's a lot of people who are sitting around the board room table deciding just how aggressive they get on their strategy to capture the loss clients that will be walking away from svb over to new banking institutions. we're excited to see who steps up and that's what we're looking to co. liz: i bet they want your money. good luck to you. wes is the ceo of fetch. he's got dry powder and money. we're coming right back with much more. kyle bass and tim draper. don't move. lots more ahead. ♪ d we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums]

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liz: breaking news, first republic has been halted again for the 32nd time this session. the last price of the bank shares was about $36.96. that's where we are at the very moment. again, halted and we do have that down about 54%. i do want to give you this perspective. the low of the session, $17.53. so certainly off that low but it is a very volatile final 30 minutes of trade resetting the clock and half an hour left and dow just turned negative and we've got the dow jones industrials down 44 points, the s&p a second ago was negative and it is now positive by about two points and nasdaq paired its gains. it is up 85 points, still in the

green there. get to some individual stock names. pfizer has announced it has struck a deal to buy cancer drug maker cegan and they'll pay $229 per share valuing at $43 billion. they're at $198 and change. we've got pfizer up 1.5%, cegen up 14 sers and sales of covid-fighting product startsstringing. prevention shore -- starts shrink. prevention shores are up 258% after santa fe reported it's buying the bio-pharmaceutical company after $2.9 billion in cash and that's 29 a share and 24.02 a share. that's a premium of 273% and. qaultrix jumping higher and cpp

plans to acquire the software company and all cash deal worth about $12.5 billion. the companies will also get the majority ownership of sap, which bought qaultrix in 2018 and that'll become a priestlier held company and each -- privately held company and each shareholder getting $18.26, they're at $17.66 up 6.6%. activist investor karl icon launched a proxy fight at ilimin a and appointing three directors to the board saying icons and nominees and working as quickly as possible on grail related regulatory issues. we've got ilumina up 16.7%. hedge fund manager that nailed the subprime collapse tweeting this weekend, hayman capital

management kyle bass saying the federal reserve needed to step up, stat, immediately to save the world from a lehman brothers moment part two with silicon vsiliconvalley bank in the rearw mirror and what he's@this momens moment. dow down 45 and s&p clinging to two points of gains and nasdaq up 84 and let me check first republic and that stock is still halted as is western alliance again. stay tuned, we're coming right back. ♪

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hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom. at the two year bond. now, the yield at the medical examiner at 4.03% and i've been charting this at least today at 4.13 and then 4.09 and now down to 4.043 as you see.

listen to this, it has fallen 94 basis points since just wednesday, that's the biggest three-day yield drop since october of 1987 right after the stock market crashed. in a tweet on saturday, hayman capital founder and cio chyle bass, investor -- kyle bass known for correctly betting against the -- bass wrote "the fed created this inflationary investment mess by flood the market with printed money and the treasury market haves a zero risk waiting and all learning that duration risk is real". kyle bass joining me now first on fox business. kyle, what is the fed's role in this collapse of svb and signature bank too quite frankly? >> yeah, i think well awe know that the fed overdid it on the way up; right. they -- it you look pre-covid, the balance was $4.1 trillion

and grew to $9 trillion in just 18 months and we've never print that had much money in the history of our country-specific friendsatfoxnews.com in a short period -- country in a short period of time and we didn't know what the effects of the virus from wuhan would be on the world but they definitely overdid it on the way up. mind you the fed is the one institution in the world that's tasked with policing inflation and they're also the one institution in the world that can create it. in this case, they overdid it on the way up and now what they're doing is recklessly overdoing it on the way down by raising rates so aggressively, so quickly and so i say they created the mess and creating the disaster on the way down. they just overdid it on the way up and overdid it on the way down and putting 40% more into the system in 18 months created huge inflation and flooded the system with money and flooded the banks with deposits and banks have to earn spreads and

treasury have a zero risk waiwaiting and that's what silin valley bank bought was long dated treasuries and treasury-like securities. liz: and the yields started going higher and had to sell a bunch at a loss. kyle, people and the government keep saying that not a single dollar of u.s. taxpayer money will be used to have rescued these depositors and you support rescuing depositors but where's that money coming from? sheila bair, former fdic chair was on and said it's a bailout. >> well, that's rich coming from sheila bair. you have a s scenario where in 2008 we were bailing out the richest of the rich and people that owned all the equities in the bankers and financial institutions and at least we're taking the tack this time of wiping out the equity, wiping out the bounds and firing

management and then and then putting the call it backstop in the federal taxpayer behind it in this case when they say when the taxpayer won't be on the hook for $1, it's a little bit of accounting gimmick like the banks; right. if what they're doing is taking 1.6% yielding bonds and they'll get all their money back. the problem is if you were to sell those today, there'd be a multibillion hole in the balance sheet so the fed has the ability and the treasury have the ability to that i can these things on -- to take these on balance and hold for then years. it's a bit of play on words but in the end actually it's true. liz: kyle, what's the trade and you've made money certainly during the worst of the financial crisis where you shorted subprime. what's your trade right now? >> look, i think that our relationship with china continues to worsen by the day.

if you follow the two sessions take aways from chinese meetings over the last week, the financial community and the media expected xi jinping to talk about the economy and he spent the entire two sessions talking about war planning and his speeding up readiness for war and building air raid shelters on the coast near taiwan and building the national, you know, national defense facilities all over the country so, look, i think that's likely to happen too and when you think about one of the reasons silicon valley bank and these other banks with the balance sheet problems are failing so quickly, capital mobility, think about electronic banking. in the past you had to go wait in a line or send faxes in or get someone on the phone to wire money out. $42 billion tried to leave -- liz: robert wolf was making that point to be able to do that so what's the trade then? >> you mean what do you do going

forward? liz: well, what are you shorting or betting against or betting for? >> yeah, i mean look, from our perspective i'd focus on what's going to happen to the linkage between the u.s. and china. that linkage is invariably the hong kong dollar and hong kong call it mechanism of western money getting invested in the east, and i think that mechanism will break. we think the hong kong dollar breaks and that'll happen i think in the next couple years. liz: okay. kyle, great to have you on. thank you, we hope it's the first of many appearances and we appreciate your perspective. >> glad to be here. liz: kyle bass, we are coming right back with famed venture capitalist investor and dfj founding partner tim draper on the crypto action here.

liz: depositor for svb were bailed out but not the shareholders. they'll incur all the losses because that bank has gone belly up. five of the biggest shareholders of svb in this order as of fourth quarter, asset managers, vanguard, blackrock, state street, swedish pension firm electa and jp morgan.

all of these have millions of shares. let's get to charlie gasparino. charlie, what are you hearing about the fallout there? >> i mean, i just got off the phone with a former svb executive. he left about a year ago. impactful going to read you -- i'm going to read you essentially what he told me about the bank and its practices. he's saying that it took enormous risk in lending to the vc community. that was most of the clients where companies are associated with private equity firms and venture capital firms. he tells fox business that the banks loan book in his view was so risky it shouldn't have been fd ic insured and not really a bank but kind of like a venture capital fund in itself because it took tremendous amount of risk and the risk gets interesting. he said the bank had poor risk controls and grew exponentially over the last three years, and it was in like sort of -- it was lending to vc firms that didn't

make a lot of money and extending lines of credit to private equity. when you think of a banker, generally -- bank that gets fdic insurance of $250,000 -- liz: per person. >> yeah and a joint act you get $500 but not that much money. the reason why is banks do sort of make loans to small businesses, you know, they make and generally the businesses are supposed to be profitable. they don't go out on the risk spectrum and make lodger loans to -- mortgage loans for houses and this guy is explaining here, and obviously i put -- tried to put cause into svb -- calls into svb and there's nothing left. liz: we're hearing that it would ring twice and click. >> yeah, the government owns it now. liz: that's a live picture on the screen right now of santa clara branch of svb. >> liz, the picture i'm getting is this is a bank that took a

lot of risk, grew exponentially over the last couple of years, particularly since 2020 when all the fed money printing and, you know, tech blew up as a major business, and it's feeling the sort of downdraft as all that correct withs fed rate increases. liz: what about the blackrocks of the world that own millions of shares and vanguard and jp morgan. >> look at it this way for vanguard and blackrock, i don't know jp morgan but blackrock owns passively in the etf, if you buy an etf that's somehow ---liz: that's black stone. sorry, we have the wrong chart up. >> so black stone owns and not blackrock? liz: no, blackrock. >> okay, it's a passive manager and fits description of etf like a bank etf, you'll see sbv in there and vanguard. jpi don't know. it is interesting that, i heard this friday and i reported on

the claman countdown on friday that jamie dimon was not going to buy the thing. everyone was thinking jamie would buy it and wells fargo would buy it. if you noticed, nobody stepped up to the plate. synergy home not? for the -- why not? simple reason last time they stepped up and jamie bought bear sterns and bank of america bought merlin much and got -- merrill lynch and got screwed and the government screwed them and they're not going to go back to the well this time. we're going to get regulations out of this and from talking to bank ceos, you can't -- either they're going to have to cover every deposit of, you know, like they're doing here or they're going to have to look at their books and make sure there's not this sort of risk taking they're doing. anyway, that's why we are right now. liz: thank you very much, charlie gasparino. tim draper is a silicon valley

original venture capitalist and invested in hundreds and hundreds of companies and was among the first investors in names like tesla, coin base, twitch, yahoo, the list goes on. draper associates founder tim draper has eight companies he says got into a bit of trouble as, tim, you that they had their money at svb. can you describe what the situation was for those eight? >> so, yeah, thank you, liz. great to -- fun to be here. liz: great to see you. >> and yeah, i have been pushing very hard, all cfos, throughout the world, at least in my portfolio to own some bitcoin and they didn't and, it was, it's a hedge against bad

governance and bad, banking system which seems to be very dicey at this point and i think eight of those companies did not listen and so they weren't able to make their payments, they weren't going to make their payments today. so fortunately the fdic and the treasury department and the fed all got together, i think they came up with a decent solution but then there is the bailout part of that which i think is, probably overkill and then think will add more regulations and then that will hurt our economy worse. then we're going to -- liz: and eight of these companies found themselves in trouble. i mean obviously the government stepped in and saved their deposits beyond 250,000 apiece, which of course is the fdic, but how do you feel about that? >> well it makes you very nervous because that's companies had a lot of employees.

some of them had payrolls of more than a million dollars, more than $10 million in some cases. they couldn't make their payroll. that is hundreds, hundreds of people who will be suddenly furloughed, we wouldn't know exactly what to do. we talk about how do we do an emergency loan. how do we get all of this stuff put together within, over the weekend? it was a rough time and i think that, well i'm relieved that at least they, they made the, they back, they said we'll backstop every creditor but, it makes you a little nervous that, you know, the government is only guarantying only 250,000. that is certainly not enough to make payrolls in a lot of these companies. so we got problems moving

forward. the government keeps putting on a bandaid, bandaid after bandaid. starts with the lockdown and then the ppp loan and then inflation hits they go okay, we have to raise the interest rates. we got bank failures. they try to fix that. how about thinking about, where does this economy come from? it comes from innovators. it comes from hard-working people. it comes from the free market. liz: yeah. >> we need businesses to be able to move freely, not just get, hey, government is saving you. now we're going to regulate you more. it is ridiculous. liz: that brings me to bitcoin because bitcoin is soaring right now, up 20% at the moment. we've got it standing at 24,335. you have been a proponent of this. of course it eliminates the

government bailouts and the government-run banking type of system but you're not concerned that this then could somehow fall? because for quite some time it was who moving in lockstep withe stock market? >> i think bitcoin in effect is programmable monetary policy. it is not subject to the whims of some government agency or bureaucracy or group of people that just decide they will print more, whatever. it is a very, it is a free market opportunity and it's stable. there are only 21 million of them. that is all there will ever be. if i'm a cfo, i see this uncertainty in the bank world, i'm thinking, i better, i better diversify not only just from one bank to another, maybe international bank, local bank and a you know, a big bank, but i better buy some bitcoin

because if we have another bank run, if the fed and the fdic, the treasury had allowed this to happen, this run on the bank that would have been a first domino of many. people have put all their money in mattresses, then all the banks are out of business. >> tim? >> i think you need a hedge. liz: and you say that is crypto. we are going to be watching this, thank you so much for joining us. you are one of the og, vcs has been on the edge here. thanks so much, tim draper. we have one minute left in the show. i want to bring back trader kenny polcari, we see the dow is negative, so is the s&p, not by a huge amount. then we've got regionals that still look very dicey. >> i think the regionals will remain dicey for a couple of years. there has been a lot of damage done. you need to let that flush out.

expect that to happen over next couple days. liz: choppy trading to the end of today but what about perform? dow down 96. nasdaq down 49. >> ppi, cpi tomorrow an wednesday that will add volatility to the conversation. liz: that becomes the issue. kenny polcari, thank you very much. tomorrow the consumer price index comes out for the most recent month. folks this will give us an an indication if it comes in hot. [closing bell rings] whether the federal reserve continues to raise rates, many during this show caused the problem with regional banks that will do it for us. "kudlow" is next. ♪. larry: hello folks, welcome to "kudlow," i'm larry kudlow. all right, right now we can hope that the financial system is safe and stabilized by some quick government actions over the weekend. stock markets are mostly steady