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tv   Varney Company  FOX Business  March 17, 2023 9:00am-10:01am EDT

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volatility put a lot fear into investors so as not when we end up government to tell us everything is fine, it's not in the investors minds to the needs to be real change and addressing of the people's concerns. >> will be watching that, a busy weekend, dow industrial down 300 points but the opening bell an hour away. great to see you both and be with you this morning, we have a big show looking ahead to next week and it will be big one with the federal reserve's two day meeting beginning tuesday and wednesday. we expect a hike in interest rates of 25 basis points. varney and company picks it up from here. >> good morning, everyone. financial crisis and everybody wants to know if it's being contained. that's a tough question to answer. i'll show you this, first republic shares are down again, despite 11 big banks putting in 30 billion. west bank and pacific western
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are also on the downside again this morning. in the last week the big banks borrowed heavily from the federal reserve they've taken loans of $152 billion, it's a record, money to bolster their own reserves. crisis contained? too early to tell. extreme volatility what you can expect in stocks today, it's expiration date. usually jockeying for position before the close and the market dealing with banks and the fests next week. the dow looks to be done about 300 points at the opening bell, nasdaq 30, 34, s&p down 30 points. his transferase, this is the ten year treasury, the yield moving down again, 3.46% below three and a half%, it could be a quick flight to safety. same with two year treasury, field down to just over 4% of all 406 down again.
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probably a flight to safety. bitcoin going the other way, a rally the rally continues, just shy of $27000. oil $67 a barrel, a week ago close to 80. gas prices getting to come down as oil sinks, 345 is the national average but regular down 1 cent, i would expect more declines next week. politics, new world order emerges. china's xi jinping will make a visit to vladimir putin next week in moscow. russia, china, north korea, iran versus america and europe. we will ask, would it be like this without the retreat from afghanistan that made america looks so weak? election in the netherlands produces a stunning when for unknown farmers party. we are bringing you this because that vote shows the complete rejection of the dutch urban elites and climate rules. that is relevant to america.
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we have elon musk headline. referring to gender identification amongst youngsters, they are being quote fed propaganda by adults. friday march the 17th, st. patrick's day and we are wearing green, most of us. varney & co. is about to begin. ♪ stuart: i like that music, it makes me want to get up and dance, not going to. that's in dublin, ireland. st. patrick's day, one and all. we've got to get the news. >> no luck of the irish.
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stuart: lots of backstopping going on in europe. good morning, lauren. >> svb financial group filed for chapel chapter 11 bankruptcy, a week after it was taken over by the fdic, it could not find a buyer and i think the market is asking why not? is it idiosyncratic or part of a broader problem? credit suisse had problems for years, signature bank, too much crypto, this too techie, i don't know but $30 billion cash infusion from 11 banks into first republic, it was spearheaded by jamie diamond and the treasury secretary that required arm-twisting for the biggest banks in this country pointed up $5 billion, more or less each to foot the bill and the irony is it's happening 15 years to the day. stuart: to the day, that's ri right. >> wire they down today? is at this false sense of confidence?
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the banks by helping first republic are spreading risks of financial contagion hearing from the editorial board, first republic holding bonds, they can't sell them so fast to redeem depositors that will them in superfast. what's going on here? stuart: i don't think you could say they crisis is contained, not yet. big banks are down, question banks, regional banks, they are done, it's not fully contained yet. trying but not contained yet. look at futures, down across the board, down to 60 on the dow, down 25 on the s&p. market watch of the morning, kenny, if investors perceive the winding down of the bank crisis, i don't think we are yet but if they did proceed that winding down, that would bullish for stocks, wouldn't it? >> it would certainly change the
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tone. whether wildly bullish i'm not sure but we find stability because there's still a lot in front of us, the fed or rates or continue after next week so there's still uncertainty but yes, if investors but it was settled on, it would stop lead. stuart: show me big banks on how they are doing this morning. they are all down, we've got j.p. morgan down one of the h half. those losses and big banks, what does it tell you ask. >> it tells you there's people stamp their feet, starting with billy ackland and you should look at his account because they did something yesterday, and you saw all over twitter, people getting ready to sue the big banks because why are they doing that? there is this mania and hysteria that continues to build and billy ackland saying no, don't do this and i wonder if he
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shored these up, it's another conversation but i think that's why we are seeing this. i'm not concerned about the money, not even the super regionals, i think it's just hysteria that needs to work its way out over time, i think people need to be patient, breaking industry in this country is struggling with but i think you have to tread lightly. stuart: and stay out until things settle. thank you very much 15 seconds. >> j.p. morgan, one of my favorites, bank of america. stuart: we heard that on the show before. kenny, thank you very much, good luck to you this weekend. charles schwab said clients hold billions out of their pride money market funds this week. lauren, can you explain what that means and where the money went? >> $.8 billion in outflows within the bank. it went from prime money market
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funds, they are considered more risky because they invest in things like corporate debt security and what to assess the half government backing so those are considered more safe. schwab says everything is okay, eight and ten over 34 million accounts are fdic's. i bring that up because eight and ten at svb were not so is the polar opposite and schwab ceo bought 50000 shares this week, a vote of confidence in the bank and he did so in his personal account. stuart: let's move on, politics. reporters caught white house press secretary jean-pierre of the president biden avoiding the meeting. watch this. >> this is coordinated. [inaudible] >> i hear you guys.
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i hear you guys. look, two plus two is something done in coordination with the country visiting, it's not something unilaterally decided, it's in discussion with the other country. stuart: would you think? >> basement strategy is well underway for 2024 of extremely obligated topics and another leader of another country, it's an opportunity for reporters to ask questions on the complicated topics, reporters are the eyes and ears of the public, that's what they are there to do, to get the answers is team is scared of giving the answers because they know he's going to flood and potentially cause an even bigger problem it is a sad story. i know he wants to be president, i want to be the quarterback of the new york giants but i got winded walking up the stairs yesterday, it's not a job i can
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do. if he can't answer tough questions, he shouldn't be president. stuart: i would defend on the president, we are surrounded by difficult crises, or, china, etc. you don't want to stand up there and free flow questions and go off prompt and ad lib. your response in a time of crisis. i could understand the president backing off on this for the psaki of safety, frankly. you don't know what he's going to say but at the same time, we as a country should not take the risk. >> we are in one 100% agreement but you shouldn't have the job if he can't handle the basic responsibility, it's a tough j job. stuart: he's got the job. >> we don't have a commander-in-chief who can answer questions. stuart: thank you very much, we had a fight last week. >> we can arm wrestle today but i'm not wearing a green tie, i'm wearing wednesday and everybody on foxbusiness is leading the hear about it.
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i'm sorry, america. [laughter] stuart: we are going to move on regardless. i didn't realize that. across the board, stock prices lower this friday morning, the dow down to 30. james lankford and janet yellow. >> your plan to keep large depositors from moving funds out of community banks into the big banks. >> it's certainly not something we are encouraging. >> it's happening right now. >> we are going to bring the full tape. xi jinping going to russia next week, full scale state physical pulling sending just to ukraine, signs alighting up, about coming spring which may decide the work. kurt on that next. ♪
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futures in the red, we could have opened lower, down 20 for the s&p, 11 for nasdaq. poland and slovakia cutter jensen ukraine. is it possible they are saying we are doing it, why doesn't the rest of nato do it? >> these are made 29 jets which is important because ukrainian pilots already know how to fly them, will require much training, slovakia sending 13, poland forfeit promising more on the way. poland's president says the countries pledged to send jets, they be time to deliver. they didn't name the countries for the exact jets.
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however, ukraine is looking for f-16s. those are not likely to come anytime soon. john says sending f-16s is not on the table at the moment. stuart: kurt booker is a former u.s. ambassador to nato and he joins us now. we are told is a big battle developing this spring in ukraine. could it decide to work? >> i think it's a possibility, we can't count on that. what we've seen the last couple months is russian forces disorganized, unable to advance, suffering very heavy casualties around town and not able to get much out of it. ukrainians are gathering forces now, they are getting tanks, leopards from european countries, they are getting better air defenses including pagers, fighter aircraft as well from poland and slovakia
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mentioned. this is going to give ukraine the opportunity to launch a serious combined arms defensive to take back territory last year end this could break the russian military in ukraine. stuart: break the russian military, strong expression right there but you heard from governor desantis, aid to ukraine is not in our national interests. no f-16s, no long-range weapons, are you in his camp wanting to back off what? >> we could cripple over the word vital, if ukraine were to fall, united states would still survive. with that being said, it's very much in the u.s. interest to support ukraine and take out the threat putin represents to all of us by helping ukraine defend themselves in their own country right now. now is the opportunity to do this, they should get long-range artillery, they should get lighter aircraft and is frustrated to see poland and
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slovakia stepping forward and we keep saying now is not the time for fighter aircraft from the united states but the time was a year ago when we could have started planning for this and things could have arrived in a timely fashion. still, we should be planning and training, putting in place logistical chains because we don't know if it's going to end this year, it could still going on and now is the time to make preparations. stuart: not good news xi jinping will make a full scale state visit to moscow next week monday, tuesday, wednesday, not good news for us. >> it's not, there will be temptation on the part of russians to assist the chinese give them, do something for them. up until now china has been pretty careful not to get dragged into this conflict. i think russia is not doing well, it doesn't want russia's aggression equated in any way with china's ambitions and it's held back from providing the russians. i hope that doesn't change. one thing we have seen in the
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past month is china putting forward the peace plan for ukraine, taking advantage of the fact that russia is on one side and u.s. on the other, but even that said respect for sovereignty and integrity which is shot at russia. stuart: all good stuff, thank you for joining us. it will be a big weekend. now this, house republicans investigating biden's family, biden's family did receive money from business associates in china, take me through this. >> james, identifying both biden's widow hallie as a third family member to receive payments from hundred biden's business associate rob walker. in records, he reveals she received at least two payments totaling $35000 and one of the payments $25000 came following a $3 million wire transfer to walker for chinese energy company called state energy,
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hunter's legal team defending the payout saying hundred biden, private citizen with every right to pursue his own business endeavors and joint business partners in seeking joint venture with privately owned legitimate energy company in china but comber wants to know what services the biden family provided to receive that kind of dough. >> joe biden's defenders have said this is a business deal. there's no business, they were influenced peddling, it looks like they were getting money for some type of service. i don't think hundred biden could provide the type of service that would generate millions of dollars from the chinese communist party could i believe father could. >> hallie biden's $25000 payment came in march 2017 after those death and hundred biden were romantically involved. stuart: thank you very much. let's check futures again, seven and a half -- a and half naked. dow 200.
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we'll be back. she
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wore red ink on the left-hand side of your screen. the nasdaq just went slightly higher. david is with us, is the banking crisis winding down or not? >> good morning and i'm of the belief we are likely in the early innings of a much longer ballgame here so as we are looking at the rates that have changed, as we focus on the fact that it took two weeks for the lehman brothers to melt on the 2008, we look at the speed of which the three banks of the durham like two days, not two weeks, i think there's an ballast to the fragile ecosystem and there are four things we don't know about the market or when is quite a job, how far, how long it's going to be down,
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but the feds will do. stuart: are you predicting, do you think there's a good chance or fair chance of the situation? >> we don't know was going to take place, we've never seen break hikes as fast before, we've never seen this environment so quickly so i think we are likely going to see more of these challenges as this ultimately a bond bubble taking place right now. if we don't have bank runs and allow the reserve lending for every $1000 invested in the bank, they can lend out 10000 when the runs on the bank happen in cover withdrawals, they are forced to sell their treasuries since 2008 they've not had to mark to market so when they put money in the treasuries, it looks like dollar for dollar investments but when they sell them, they realize better than 30% loss today so all banks and financial institutions have the
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same pressure just like every single investor today has the same pressure associated with this with interest rates rising, value of the bonds go down so what's the contagion? who knows? but the fed is backstopping this thing. stuart: we had several calls on this program but money into big banks because the theory is they will ultimately be the winners from this crisis. are you on board putting any money into big banks at this time? >> i think the biggest banks are probably the safest places to be but that was also the story were lehman in 2008 so i don't anyone is exempt from the charges. i think we need to be smart about fdic limits not exceeding $250,000 which most americans are having a challenge with but businesses have a challenge because there payrolls exceed $250,000 on a monthly basis so the challenge is, where are we
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able to put assets today we don't have runs on the bank, we don't find defaulting situations and keep the quiddity so cash is king but if you can't get access to it, the liquidity challenge becomes the big problem we are facing. stuart: 30 seconds to tell me if you're buying any stock of any kind now. >> i got 30 different portfolios so we are buying multiple things in multiple areas for different things, love to have free cash flow, we want more of a rifled approach to individual stock investing today but i'm a fan of treasuries right now, a fan of protected assets, a big warning though on bonds because they lose money in five ways and i believe all five of the ways are on the table right now. what we are seeing in the bank crisis is a serious response to the interest rate adjustments we are not out of the woods on yet. stuart: thank you for being here. do you see that on the left-hand
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side of the screen? yelled all the way down to 3.7%. i will call that a flight to safety. susan is with me, 30 seconds before the bell on wall street. >> i think there's going to be a flurry of activity this weekend it's unknown right now, whether tieups between banks, who's going to be the white knight to rescue the smaller regional banks? think people are holding fire to figure out what happens this weekend. stuart: as we can, who's in trouble, when we doing? >> who steps up to rescue. stuart: triple or quadruple thinking? all right, the market is now 9:30 a.m. friday, trading begins. running on the downside, without industrial about 100 points lower, it's roughly two and a quarter and one third on the downside, not a huge loss. there are some winners,
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microsoft, plus one of them all. i like to show these things. s&p 500, i'm pretty sure that's down but not by much. we are opening our. s&p down a fraction, .20%. the nasdaq dead flat, it is. that is ever so flat, slightly lower. big tech, most are up, microsoft the big winner, amazon and alphabet higher. apple 155, down a fraction, meta 201, down $3. first republic. big banks have come to the rescue, susan is here. >> look at the stock, down 17%. reversing all of the gains you saw yesterday after that analysis of setting forth record low for first republic, $5 soft this morning by wedbush.
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they used to call at $150, you're turning at $28 so all the way down to $5 a share for first republic and the stock moved by the way after the $30 billion injection yesterday, 11 big banks including j.p. morgan, depositing $30 billion into first republic to shore up cash reserves just in case but wall street sounded the alarm like bill ackman, he said janet yellen forced this move and spreading the risk of natural contagion to chief, false sense of confidence in first republic is that policies and the stock reaction is saying the same thing. it's not over because this weekend people are talking about possible activities, morgan stanley, whispers they might step in to buy first republic, regional stocks under pressure, achieved by for larger banks as well. in this fragility in the banking system, some would say it's because largely by the federal
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reserve and aggressiveness. did you know this week is one year anniversary of the fed kicking off steepest year of interest rate increases since 1981? this time last year you are paying zero, the year on today, paying 150 basis points more, four and a half percent plus on your lending rates. stuart: this problem could be spread out for some time because it takes a long time to unwind rapid rise in interest rates. >> the deposits, don't forget capital flight, taking the first republic and depositing into j.p. morgan, bank of america so recycling of deposits to go around to make sure everybody is okay. stuart: i've got credit suisse selling off this morning as well. >> $54 billion lifeline so insurance to protect against bankruptcy, credit default swaps something we haven't talked about since debt crisis in 2010, 2008 hitting to stress level so
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paying the highest insurance to protect against bankruptcy 2008. swaps, i know it sounds wonky but important because it tells you how healthy the market sees the banks and right now cvs for credit suisse are 18 times that of ubs. nine times and don't forget these are banks we've been talking about since 2010 about weakness stemming from lowe's and the european debt crisis. stuart: so to sum it up, the banking crisis is not over, it's on running. next case, google, are they raising the price on youtube streaming? >> you get it for free? no, youtube tv, basically a bundle where you get live tv channels which you have to pay for, i know i pay for it so that prices up to 72.99 from $65 a month, people getting sticker
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shock, paying for cable all over once again so youtube tv says it's been three years since their last price hike and with inflation, higher fees and cable companies, carriage fees, they have to raise prices. hulu tv live, the nearest skinny digital competitor, 69.99 a month but with hulu, you get the channel extra free but it's all about sports, youtube tv couldn't come to an agreement with major league baseball, mlb network so it's his prizing despite that they are not paying carriage fees, they are still raising prices. stuart: let me tell you about fedex, they had a report, they are up 10%, a good report. >> it was it's not growth so they beat top and bottom lines, all important. you listen to the earnings call,
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i've heard snippets, it's all about cost-cutting. even said ceo said on the call demand is the week. that's not a good time for growth but if you're saving money, it's a deposit. stuart: who got to talk going. earlier we had close to $27000, now 26.5. it's quite a rally. >> highest now since june so finally treading like the sovereign hedge, the hedge against that government policy and banking financial system as it's endorsed to be so a double digit gain so far this week with banking troubles, almost 25% on the week alone and i saw 67% big going in the crypto wallet haven't moved the past year so is predicated on how big wheel traders spread out so if it doesn't move, it's a positive for the price. stuart: ev makers like expound but can you bring in folks on the cheap ev?
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>> i think it's more of a stock reaction here, it wasn't a great report card but the fact that they are forecasting for a better year, their losses did widen, they lost $300 million and their deliveries dropped but they are saying there's a recovery in china and that's why the stock is up and lifting. volkswagen. tesla in the earnings investor day, they did announce a cheaper car of $25000 but volkswagen said have one coming, would you buy it for $20000, a new id? the one ideas it's called, only 20k. stuart: that's the vw? that's competition for tesla. >> morgan stanley it says in the future, volkswagen might be the winner beating tesla in terms of sales. stuart: tesla is down a little today, thank you, we will see you later. coming up, minnesota's lieutenant governor allowing children to receive gender
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transition treatment is what it means to be a good parent. >> when our children tell us who they are, it is our job as grown-ups to listen and to believe them. that's what it means to be a good parent. stuart: listen and believe. elon musk responded forcefully to that. we will tell you what he said. kevin o'leary on the banking crisis, is it contained or what's? is on the show. dan crenshaw going after mexico as president again. roll it. >> this president is out of control. if you weren't sure if he was bought off, you could be pretty certain now. stuart: strong stuff, how do we find the cartels? leslie deals with that next. ♪
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all the markets, we've still got red ink especially for the dow industrial down 200 points. minor losses for the s&p, minor losses for the nasdaq. after two years of record-breaking illegal crossings, president biden is now reenacting some board of policies similar to terms. the same policies biden and his colleagues blasted. william, the democrats all over trump, where's the outrage now? >> that's the irony. crickets. biden campaigned as anti- trump and the same democrats who complained about immigration policy then or now missing in action so consider, they criticized the wall yet biden agreed to fill the holes and fix the gate to the wall works. trump adopted title 42, biden expanded that, trump ground immigrants into detention
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centers and deport of thousands into dangerous conditions without ever seen a judge as has biden. >> there on the other side of the river. >> they attempt to cross in the united states unlawfully. they will be returned back to mexico. >> now biden also wants asylum-seekers to first get denied asylum elsewhere before applying here. >> do not, do not just show up at the border. stay where you are and apply legally from the. >> the first resident in the street of united states of america seeking asylum have to do it in another country. that's never happened before in america. >> biden wants to require asylum-seekers to enter only through ports of entry, another law from two years ago. >> to come to the united states and make your case. >> if they are seeking asylum, they can use an app on their cell phone to schedule an appointment at a port of entry
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and make their asylum claim there. >> now even the media are catching up to biden's trump like conversion but where's the liberal outrage in the grandstanding at the border? instead, we get silenced. some democrats and 14000 activists have written to the white house with objections but in terms of denouncing it on a weekly basis every friday, cool and humane treatment we heard four years ago, crickets. stuart: got it, thank you very much. listen to what texas congressman dan crenshaw had to say about mexico's president and the cartels. >> this president is out of control. if you were sure if he was bought off by the cartel before, you can be pretty sure now. this was an unprovoked set of comments from him. i never called him out by name or said anything about him in particular, just said with got to go after the cartel, they've been terrorizing mexicans for 40 years.
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nobody even knows real numbers but it's tens of thousands of murders and disappearances of mexicans every year from the cartels. stuart: wesley hunter is with us, congressman, what are we actually going to do about the cartel? we always hear what we should do this and should do that, what would we actually do? >> when 9/11 happened, i was at west point and there were thousands of americans that risked their lives and gave their lives to defend this country against all enemies, foreign and domestic and prevent terrace attacks from happening in this country again. now we have a new face of terror and it's the mexican cartel. they are buying fentanyl from china, ushering it in through the border and killing americans to the tunes of tens of hundreds of thousands. in the past two years we've lost 150,000 americans, three times the death which saw during the vietnam war so we are already at
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war with the cartels and it's all because of this administration that refuses to address the border and it's one thing dan crenshaw and i and agree upon, he's clearly bought and paid for because americans are getting murdered every day and border czar kamala harris won't even go to the border at all. stuart: what should we actually do about it? what are we going to do about it? i agree, i don't think president biden will do anything but what about republicans, what are you going to do? >> that is clear he's going to do nothing but what we can do is implement the policy president trump had for 2016 to 2020, it's that simple. if we start there and make sure we build the wall and increase border security, implement the policies we saw that works, if we lead with that the next couple of years, get back to presidency, house and senate that we can do something about it. that's what we can do in
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congress. stuart: here, west point, a military guy, should we use our military and mexico against the cartels? >> that's something we absolutely should take a look at. there are some legislative things we have to pass to get that done but they idea of drone striking fentanyl plants in mexico sounds like a pretty good idea to me. americans are dying, the federal government's response ability to keep our citizens safe and we are failing them. if it takes military action, if we do it the right way, sign me up, i'm ready for that. stuart: clean-cut answer and we welcome back on this program. thank you very much. bill cassidy says the administration is lying about social security. >> why doesn't the president care?
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>> he cares deeply. >> then where is his plan? >> he stands ready to work -- >> that's a lie. stuart: strong stuff. we'll get into that one. with the banking crisis potential homebuyers on the sidelines? i don't see the connection but just as the report after this. ♪
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and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. of got a question for homebuyers. will you be put off by the banking crisis? jeff has the story. got to tell you or ask you, what's the connection between the banking crisis and buying a home? >> i like it when you asked me a question i can answer. the connection is the regional banks a lot of the landing and there's money flowing out of the regional banks now into the big banks so there may be less liquidity there and that means single-family homes and the development you see here called the ashburn meadows development outside philadelphia, there may be less liquidity so less ability to get along. look at the numbers, it's surprise me when i saw how much
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lending regional banks do, 80% of commercial lending is done by commercial banks, 60% residential lending done by regional banks and in a hb says follow on effect of the pressure on regional banks as well as continued fed tightening will be further constraints for development and construction loans for builders in the u.s. and we talked to realtor in miami who says this will get a loan by a single-family home. >> i think the capital outflow into the big banks will cause liquidity issues in the smaller regional banks the next coming days or weeks and they will have issues as well so they may not be making it at the local level. >> interest rates are awful high right now compared, comparatively perhaps. they came down a little bit to
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6.6% with a 30 and below 6% for the 15 year but pending home sales, look at the numbers, folks at redfin say year over year down 16% because there's not enough supply of their self this does have tentacles that go out and a lot of places. stuart: that was a great report because there is the connection deflated out. you got me. not bad. >> you made my week. stuart: if not your year. thank you, see you soon. thank you for being here. >> .net. stuart: one more. okay, where should i live to get the best bang for my buck? >> let me start with where you shouldn't live because off the script. the priciest is new york, san francisco and honolulu $100,000 buys you the same quality of life as someone making $36000 a year, almost anywhere else in the nation. telephone you, many of the ten
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priciest cities on the list, long beach, san diego and oakland, place that offers the biggest bang for your buck, memphis, tennessee where six figure earner would have the equivalent of $86000 left in texas is another major winner. el paso, houston, san antonio, fort worth and arlington. i didn't get fired with my last hit on a friday. look at the irish. stuart: any luck, he might be back next week. thanks for joining us, good stuff indeed. check the markets as we approach the 10:00 hour. dow taking the majority of the selling here, dow is off to 50 points. still ahead, tammy, jason, steve hilton, kevin o'leary and much, much more. 10:00 hour is next. ♪
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stuart: outside the temple bar in dublin.

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