get 30 billion gallons of this stuff, right now we're doing 16 million. i think it would squash real smart approaches that, you know, listen, we're going to get somewhere sooner or later, but until until be wiser to let those other approaches develop. it's economic suicide, and the american consumer and taxpayer will have to pick up the tab. by the way, there's another hinge that calhoun mentionedded that i think needs to be preeted, that the industry the, his industry, airlines, it created mass transcontinental travel and represents one of the crowning achievements of the petroleum era. i mean, my good b, do you really hate the fuel that brings families together, take your kids to soccer practice, grandpa to the hospital? we'll get alternatives at some point, but the way we're doing it now i think is economic suicide. liz, my thought. liz: charles, i was so worried you wouldn't get the purple memo. [laughter] but you did. charles: i did, i did. liz: in a big way. thank you very much.

folks, in the last 28 minutes, and is we've been watching this, we've started to see the bears awaken. up until about 2:30 p.m. eastern time, it seemed as if the market was pretty much untroubled by the fact that the clock is running out for the president and republicans to strike a debt ceiling deal by june 1st or risk a default which has never happened in the history of the u.s., but let's show you the sudden dip. here are the intradays. they hit the tape, most of the day the dow was flitting between gains and closes -- losses, crossing the unchanged line more than 100 times until about a half hour ago when the dow sudden arely gapped down 273 points, right now it is the 188. the s&p, which had been down slightly, cratered 50 points, right now it's down 40, and the nasdaq fell 164 points maybe because there is still no deal. right now the nasdaq is down 136. yes, house speaker kevin mccarthy did emerge from those talks last night with president biden and said that the tone of

his meeting with the president was, quote, better than any other time we've bat had discussions and, quote, we can get it done. however, can the collective i we, meaning the more extreme blocs within both parties, get it done? stocks maybe reflecting concern that whatever the negotiators agree upon still has to pass in congress, and that's going to be a tough rock wall to scale. so as investors shun stocks at least for the moment, they are also pulling out of treasuries that mature within the next couple of months. we need to show you the yield which moves inversely to the price. on the 1-month treasury bill, it hit a record high early this morning of 5.88%. right now we've got it at 5.55%, but 5.88, that's the second record peak in 48 hours and perhaps a sign investors prefer to swap out of government debt at the moment in case a deal is not reached and into higher yielding corporate bonds. but traders are also piling into regional bank shares at this hour. you've got to look at pacwest.

a day after announcing it had a deal to sell $2.6 billion of real estate construction loans at a discount in order to bolster its balance sheet, the stock is moving higher once again. s the off the highs of the session though, right now up about 7.33%. it had been up -- and now we're looking at a gain of about 30% just week to date, and it's only tuesday. please keep in mind it is still underwater year to date, down 66%. that is not the only regional. pardon me. powering higher at this hour, zions up 5.8%, valley national up 5, metropolitan bank up 5.25%. famed investor kyle bass says caveat emptor, he is making a worrisome prediction if about several of the regional banks. his thesis on why some -- and these are his words -- will be taken down. kyle is coming up many in just a moment. but so much of the recent turmoil has to do with the federal reserve raising interest rates ten times in a row to

quell inflation, and for quite some time the bond market with its rising yields has been a great place to park cash, but is that now changing and changing fast? in a fox business exclusive, rick reider is chief investment officer of global fixed income at blackrock. and by the way, rick just won the outstanding portfolio manager award from morningstar. congratulations. >> thanks, liz. liz: we need an outstanding comment here -- [laughter] on, first of all, when you say, because i know you guys have all been delving deep into this, when you say that the debt ceiling limit or the deadline to reach a teal really is. because janet yellen, the treasury secretary the, says d-day is about june 1st. ,. >> so i mean, listen, you have to that we're getting roughly a good indication of when that is. you know, my sense is that it is sometime in the beginning to middle of june that they've got to come, we've got to get some agreement before default. listen, there are a series of things that the treasury can do,

so my guess is they've got a few more days. that being said, i think policymakers understand the import of you've got to get it done. and by the way, it's a cumbersome process. you got to get votes, so it's good to see there's a sense of urgency. you know, it's not unexpected that you would have discord of coming to an agreement. the far left and the left and the right and far right, it's going to take a bit of time, but we don't have a lot of time, and the markets are obviously on edge about it. liz: what does a record yield on the 1-month, that's 4 measly weeks, that people are is so concerned, they're parking money there although now not so much. but still, what is the bond market screaming to investors right now? >> a couple things. first of all, the fed funds rate has moved up 500 basis points, so we've talked about it on your show, the opportunity to stay on the front end of the yield curve and get these yields is pretty extraordinary. what the market is telling you today about, gosh, i don't want to the take, you know, i don't make a lot of money, and the

front end is where you protect your wealth, where you clip a little bit of yield in terms of dollars, and people just don't want the deal with it. i don't want to deal with maybe some deferral of principal, and so people don't want to deal with it. we talk about on your show, things like commercial paper, you can buy really good, high quality companies at 5.75-6, they're not going to default. the government may default, i don't think they will, but there are alternatives today to get this yield. and so you know what? treasury's got to issue an awful lot of bills, and people are say, you know what? for now i'll pull back a bit. liz: so this almost looks like a shift, a rotation out of short-term treasuries and into corporate bonds, that that's when you're talking about commercial paper, corporate bonds. and there's a lot of talking about the aaa-rates ones like microsoft's or johnson & johnson's. are you recommending that? >> so i don't mean to overstate because the amount of size and the amount of treasury bills issued verse discuss the amount of -- versus the amount of paper, what the treasure the --

treasury's tone is front-loaded a lot of that issuance because they know where investors are looking to go. where mostly money market funds are going is i don't want to deal with that mature i the, so i'll just stay the really short in 1-week, 2-week paper to get in front of this. so that's where most of the money's going. listen, today you have so many earnses to get real yield into your portfolio, you know, i've been doing this -- i was going to say the number of years, but i don't want to do that. [laughter] so long, there's literally a potpourri of things you can do. liz: finally, you've got crlds, certificates of deposit, you have got high yielding savings accounts at all of the banks at the moment, anywhere from 3 to 5%. make sure they are fdic-insured, of course, but that's where people are finally saying, wait a minute, why don't i just do this in case the government defaults? >> that's right. and like i say, you're going to talk later about, you know, the banking system and some of the stresses on the banking system,

it's protecting these deposits. they're expensive for the banks, and that's part of the issue is where they have to fund even though they're insured, where they have to fund is expensive. but, yeah, there are a lot of places you can go and feel good about. at the end of the day, i don't think people are going to lose money owning treasury bills, treasury notes, etc., i just think there's a hassle and do i want to deal with it today when i've got so many other alternatives. liz: okay. but let's just drill down on that part of it because the conventional wisdom is when rates rise and the price of a bond goes down, that usually means risk on. people want to get out, they want to go into other options like equities. not today, dow jones industrials down 215 at the moment because i think it's too nervous, too scary for some people. but when you go back to april 20th which was pretty much right around the time that the gop struck the deal where they created the bill where they said we'll lift the debt ceiling in lieu of you've got to have some spending cuts paired with it,

you see that that dip there. so the 1-month treasury yield dropped dramatically. i believe it dropped to about 3.21%, tanked 53 basis points from the day before, because the republicans had unveiled this plan. dueling headlines around that time, and and i need you to decipher this for to our investors. market watch on the 20th said, quote, growing worries over the u.s. debt ceiling send 1-month t-bill yield tumbling. then yahoo! finance on the 24th said 1-month treasury yields rise from october lows as debt ceiling worries grow. do they rise or do they fall on debt ceiling worries? [laughter] >> the iron ironic hinge, they're both right in that there's a timing to it. so if you look, if you buy in april, you buy 1-month bills, you're going to the mature in late may, mid to late may, means i'm in front of dealing with this mess. but then if you look at like you were describing, a longer date, 2, months, 3 months, june, july,

that's where rates are rising. you're seeing yield curves move around like crazy for, gosh, i'd rather be shorter. you know, i'd love to the buy a bunch that mature, i just want to avoid june and july. ironically, they're both right, just the timing is quite different. liz: the fed plays very much into this. will the fed pause many june, and does that mean that the next move is another pause, a pivot or a tightening? >> so i think they're going to pause, but you can't -- i mean, will be, the inflation numbers are still sticky high. core has come down quite a bit, arguably below normal levels. it's the service sector inflation. wages are still high, service sector inflation. i think they're going to pause -- liz: which is what the markets are saying. >> yeah. could they go 25? they could. and, by the way, i think there's a kiss agreement on the fed committee members. -- disagreement. they're going to get in the room and wrestle that to the ground. my sense is they'll pause. but keep in mind, pausing just means you can buy yourself some time which i think right.

you've moved 500 basis points. you're seeing banking system, commercial real estate, you're seeing pressures in the system. you can take a bit of time and, you know, if inflation doesn't come down, you could hike at the next meeting. i think it makes -- i think they're going to pause. i think it's judicious to the pause. let's see where financial transmission, you're to going to get real credit contraction on the back side in commercial real estate, rollover finance. listen, i think at the end of the day if you're an investor, you're thinking about putting money to work. you should assume that we're at the tail end of their process -- liz: if nothing else. >> correct. of. liz: and now when you look at all of the options we were just talking about of where to the put money, you today are launching a brand new etf under the ishares name, and it's binc. let's talk about that because specifically it's a flexible income -- what's in it? >> so, i mean, the nice thing about it, we're trying to create a lot of yield for clients, you know, without -- there's something very unique about this point in time versus when rates

were at zero or very low for years, for a decade. now you can buy to get close to 7% which is where we're yielding told, where the portfolio yields today. you're getting close to 7, but you don't have to buy all high yield, all emerging markets. we are buying investment grade credit, aaa-agency -- liz: these are hard for the average investor to to dig through and find. so it's all in a basket. and it's managed by you. >> yes, ma'am. so, you know, it's diversified, and like i say, to get anywhere close to this, think about it in 20 to the -- 2020 the, '21, you were getting 23.5% in -- 3.5% in high yield. we still have high yield with, probably 10% european, some emerging market debt, but at the end of the day you can build in the high quality and create a nice yield -- liz: what do you anticipate? >> to clip 7%. liz: wow. is it trading yet? because we were looking earlier. so -- >> it just started trading

today. liz: just started trading today. i don't know if we have a hot board for that, but regardless, as we finish up here, what am i paying for you to actively manage this fund? because buffett would say i don't care who's running the darn thing, just go into an unmanaged, low-fee s&p fund. what are the fees on? >> so the fees are not high on etfs generally. the thing i would say that is different about fixed million and particularly higher yielding fixed income, there are tens of thousands of securities. it's one thing when there are multiples of fixed income equities, and for the first time you're getting real dispersion around companies defaulting, commercial real estate's defaulting, to have a professional manager manage that for you, you know, to go in and buy individual equities, you know, people can do that, but in fixed income, it is an opaque market -- liz: what do you charge? >> i don't know the exact fees on the show, but it's, etfs

are a low-fee product. liz: they are. what made you take the dive here to start actively managing -- >> so, you know it's pretty extraordinary in that today people are using, with building models, financial advisers are building models and looking for access to different areas. you can do it for gold, sectors of the ec with i think market, and it's -- ec with i think market, and people say, gosh, i'd like some fixed income, hard for me to replicate fixed income. i can't figure out should i buy aaa commercial mortgages or real estate, should i buy -- and so the give it to a money manager to manage for you can be really effective and know that they're going to get income and they can build the rest of the profl if around it. liz: and morningstar top portfolio manager noless. congratulations. >> we've got to keep that the up. liz: well, the ticker is binc, correct? that's a different one. okay, never mind. why would we show -- [laughter] great to see you. thank you so much. >> thank you, liz.

liz: folks, we're watching the dow very closely, watching all of the indexes. at the moment the dow's down 187. closing bell, 45 and a half minutes away. we're coming back with much more including famed investor kyle bass of hayman capital. we've got the cfo and the outlook for travel ahead of the memorial day weekend live from the lovely newark liberty airport. stay tuned, we're coming right back. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

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liz: fox business alert, we are watching the markets extraordinarily closely here because there is still no debt deal even though we heard that speaker mccarthy specifically said that things are actually going very well as they try to

negotiate a deal to lift the debt ceiling before the united states defaults. part of the problem is that both democrats and republicans aren't in d.c. to vote on anything even if they codo come to a deal -- do come to a keel for just a couple of days, that's all that's left. we're coming up on the memorial day weekend, and most of them are heading back to the their areas, back to the their states and regions. and we're looking at what could be record travel overall. delta airlines is expecting nearly 2. 8 million customers to fly over the 5-day holiday weekend. that's up 17% year-over-year. delta moving high higher by 1.5%. but the big question is there airports -- the airlines seem to be handling it, but can the airports handle the surge? it's already starting at newark liberty international airport where madison alworth is standing by live. madison. >> reporter: hey, good morning, liz. you know, we are very

familiar -- good morning -- good afternoon. [laughter] it's been a long day. i'm not like the lucky travelers who are going through the gates and heading off to fabulous destination. i've been on this side of security, but i've been looking at the signs, we've seen about 5-15 minute security checkpoint. that's really good. not what we're expecting for this weekend and not what's being warned for this summer because we could be looking at another turbulent travel season. memorial day weekend, we're talking a lot of passengers. 17 million people expected to pass through airports here in the u.s. between thursday and monday. to assure those passengers that things will go smoothly, secretary of transportation pete buttigieg held a meeting today. while he laid out that cancellations are now under 2%, that's something we've seen for the haas couple weeks -- last couple weeks, he also noted that this weekend will be a huge test for a system that is still kind of weak. >> we know that on the airline side staff thing was one of the

biggest issues that contributed to last year's problem problems. most of the airlines are indicating that they've made big gains in terms of pilots but not necessarily fully recovered depending which airline you talk to. mechanics is looking like a continued pinch point. less clear to the us where we are in terms of the baggage handling, because that is so specific to the an individual airport, but something we're keeping an eye on. >> reporter: you know, another thing on the airport and on the faa side like you mentioned, we're looking at the airports and their ability to handle things. buttigieg noted during that meeting that we are still short 3,000 air traffic controllers. the goal so the hire 1500 over the course of this year, but when you look at all of these things that are going on, we're still hearing from passengers that they are dealing with delays. >> i mean, it was a mess. he didn't miss his flight, but the flight was delayed horrendously, and it was just because of they said it was wind turbulence. they weren't even up there yet.

>> we were flying last night, s. unfortunately, our flight got delayed around 3 hours. it would be an easier way if we get notify way ahead in order just to manage our business meetings and other engagements. >> reporter: and it's something that we continue to see. just this past weekend, liz, in denver there was a ground stop because of a staffing shortage issue there. so a lot going on. travel starting this thursday. airports across country getting ready. the three busiest, though according to hopper, are going to be atlanta, and denver. so if you're flying through those the areas, prepare for even more crowds. liz: not o'hare? i thought o'hare was sort of the holy yale of -- >> reporter: i think o'hare is in the top five, but i only remember three, liz. liz: because you've been there since 6 a.m. in newarkment madison, time to go home. thank you for staying, we appreciate it. madison alworth. zoom video communications beat first quarter earnings

estimates, but the stock taking a hit in this final hour of trade. what are investors zooming in on when it comes to the pandemic darling's results, and are they wrong to sell the stock here? next, the cfo of zoom joins us live as it counsels down on its investment in a.i -- doubles down on its investment in a.i. is its valuation starting to look tasty again? closing bell 37 minutes away. s&p is down 42 points, that is equal to a one full percentage point move to the downside. nasdaq same, down 1.25% or 152 points. "the claman countdown" back in a minute. ♪

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but hurry, these dream days are only here until june 5th. liz: apple planting its roots more deeply in the united states. the tech giant showing its commitment to the american manufacturing today through a multibillion dollar deal with broadcom. as part of the deal, broadcom, which is moving higher by 1.33%, will supply apple with 5g radio frequency components built in manufacturing hubs all around the u.s. apple for its part down 1.5%. but slipping over the lowe's, building on gains at this hour even as it cuts its full-year sales forecast among weakening

demand, the first quarter comparable sales fell a more than expected 4.3%, but the company did manage to beat on the top -- on the bottom line, rather, due to the tighter cost controls. d.a. davidson analysts say overall results not as bad as feared, so we've got a bit of relief nudging the stock up. autothe zone's falling 67% and on pace for -- 6.7. %. the car parts retailer reporting weaker than expected march sales and also seeing inventory rise 7.4% year-over-year driven by increased prices and a pullback many in discretionary spending. we should look at microsoft. microsoft has rolled out some major a. i. updates. the company in a big announcement today said it's expanding the partnership with openai to bring bing to chatgpt as a default search engine. as microsoft upgrades its products with technology from

start-up openai, major rival zoom video communications is building more artificial intelligence tools into its business communications platform. very similar to what microsoft is doing with teams. is so zoom's stock is down right now about 7.5% despite an earnings beat in zoom's fiscal first quarter. but let's hear more about what a.i. might do for future numbers here. joining me now, zoom video communications chief financial officer kelly steckelberg. kelly, great to have you. let's talk specifically about your a.i. built into zoom, what it's going to do and what you can promise. >> yeah. hi, liz. thanks for having me today. so we are really excited about the future of a.i. you know, a.i. has been a part of our strategy from the very beginning. it's embedded in many aspects of our products today including things like meeting treption and translation -- transcription and translation. this quarter we're excited to the announce our collaboration with leading a.i. companies

including openai as well as an droppic, and we're going to leverage a fed rated approach to the a.i. which allows us to use our large language models as leverage those of the companies like i just mentioned and allow our customers to leverage their models as well. and bringing those all together to start generating things like zoom iq which we announced beta in march, and there are some really cool features that can do things to make you more productive like summarizing a lengthy chat thread that maybe you missed during the day if you were off working or composing e-mails or chats for you. finish so these are the ways that we're going to start to make everyone more productive by levering these technologies in the core of our product base. liz: you know, you mentioned an drop thetic. zoom has taken a stake or has made an investment in this company which i believe is found by an ebbs-openai team --

ex-openai team, and heavy got this assistant called claude. and i was looking into this, and some of the promises of claude are that you can make it feel like natural conversation, customizable personality and tone, and i'm just wondering did you test the hallucination if levels where it starts to do crazy things? and it must be really high quality for a zoom user. what would a zoom user feel? >> yes. so you're exactly right, we're going to take claude and start to integrate some of that into, for example, zoom contact center so that you could imagine that claude can help you with some of your first initiatives or first initial questions that you have. we also have zoom virtual agent which was accelerated, the development of that, through our acquisition of solvy late last year. and what these tools do is allow you to solve say 90% of your

questions through a quicker interaction with this conversational a.i. bot. and then if you immediate to be escalated up to an agent for a higher tier problem, then they're there to solve that for you. but it makes your interactions very efficient, and it also makes the company really efficient because it's leveraging a lot of easy questions like how do i reset my password through these conversational a.i. techniques. liz: 24/7, which is always nice. >> exactly. liz: what will it do for the bottom line? your stock is getting punished simply because there is this belief that enterprise isn't as strong as it could be, the online zoom stuff was down. like, give us some clarity on the near future of zoom for potential investors who might be listening and saying to themselves i like the valuation here. it's finally come down. i believe p if e is around 16. it's -- pe is around 16. it's finally come down to where

i think it might be attractive. >> so we were very pleased with our q1 results. as you say, we beat on both the top line and the bottom line. we had a 38% operating margin, and we raise our full-year outlook for both revenue and profitability. there were some key milestones and achievements in the quarter including gross margins of over 80%. our zoom phone, which is our cloud pbx solution, cross ared over the 10% of revenue mark which we're really excited about, and we saw our online segment start to stabilize after several quarters of decline. and we did have a restructuring and a re, to -- reorganization in our go the market segment during q1, so we're in this transition period but looking forward to them really getting a good start off of q2 and then continuing to leverage all of the amazing innovation we've seen across our platform to see stabilization and then reacceleration as we get to the

back half of this year. liz: kelly, you did have to layoff a chunk of your workers. my more layoffs? and to the that end, when do you anticipate starting to hire in meaningful numbers again? what do you need to see at zoom before you say now we need to the start building back up again? >> we are currently investing many in areas, and that was part of our strategy coming out of this reduction, was to focus on areas that we could invest in to drive top-line growth and innovation. and as we announced on the call, our r&d spend is actually up year-over-year, sales and marketing is up to a lesser extent the, but we're really focusing on expanding both our marketing and our sales around zoom's contact center, for example, and we are making strategic investments in a.i. as we were just discussing. he announced an acquisition in q1, that brings to the front and center an employee collaboration internet desktop that'll be

right at center of our hub. and so all of that is really focusing and prioritizing our investments around areas that we can expand on our portfolio and then support our go to market teams to bring it to the market. liz: kelly single berg of zoom -- kelly steckelberg of zoom, you guys are right in there. we'd love to the hear from you next quarter to see how things are going. >> thank you, liz. liz: anytime. all right, with the collapse of silicon valley bank and other regionals in the rearview mirror, easy to say, okay, we're out of the woods, things have calmed down. not according to kyle bass of hayman capital who says several more are going to go under in the next year. he is going to join us next to tell us what signals to watch for before it starts to happen. and my everyone talks to liz podcast just dropped, a brand new episode. comic josh john is my guest this week. he was born in alexandria,

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liz: just two months ago on this show legendary investor kyle bass slammed the federal reserve here on "the claman countdown." he blamed the march collapse of silicon valley and signature banks on the fed's aggressive rate hike path. first republic hadn't even collapsed yet which, of course, it did and had to be bought by j, the mayor -- jpmorgan. the regionals seem to be on the road to recovery, but kyle bass says look out below, a couple more are going under. let's bring in hayman capital management founder and cio kyle bass. you're skeptical of some of the regionals. what is at the heart of your thesis? >> hi, liz, glad to be back. the important thing is, number one, this issue is not systemic like we saw systemic issues back in 2007, 8, 9. that's silver lining. when you look at u.s.backs, we have about $2 trillion of total equity this u.s. banks, and we think that just the office portfolio alone of commercial real estate is going to cost regional banks $220, $230

billion of their equity. now, if it were evenly distributed amongst the entire u.s. banking sector, that means the banking sector would take a 10% hit to capital. again, not the end of the world. a bad year, right? but as you probably have noticed, this is no even distribution of these exposures. so there are several banks, call it the top 20 exposures in the regional banks have their commercial real estate exposures at 400-600% of their equity. if all of this is going to the take 50-60% write-downs, what i'm saying is there are a handful of banks that will still have to be taken down. that doesn't -- again, i'm not trying to be an alarmist, the banking sector writ large is in good shape and will do fine -- liz: i get it, right. >> but there'll be a couple of handfuls of otherbacks in the next year or two that -- banks that end up succumbing to let's just say making bad decisions or

poor decisions on a specific asset class. that's the way the cookie crumbles sometimes. liz: well, teach our investor audience how to play forensic investor the find that -- investigator to find that kind of weakness on a balance sheet so they can certainly look at some of these names and say, wait a minute, i see here they have a heavy load of this kind of debt. i mean, we just saw pacwest unload about 2.6 billion of -- at a discount, by the way, of some of this debt to boost up its balance sheet. but how do you spot something like that? >> yeah. you know, look, i've been in the financial markets since 1992 and have all of these let's say tools available to me that are fantastic and relationships with analysts all over street and also this our firm. so there are plenty of listings out this, liz, and maybe i'll post one post-interview.

again, i don't want to be seen as aiming a laser point at any one specific bank. i'm making a comment that's more broad-based just saying do your homework a little bit and make sure their commercialreal estate exposure is not 4 to 6 times their equity. again, there are only -- there are about 4,000backs in the u.s., i'm only talking about 20-30 banks. liz: yeah, but if you're piling into regionals and you don't right now, it's really important. we're always trying to help our audience to make it a more sort of fair, democratic landscape when it comes to investing. >> right, i agree. i agree. you know, i watch, i watch some of the things that regulators say, of course, because we are regulated, i watch some of the things the bank titans say, some of those people i truly admire. i don't want to be seen as causing a -- liz: are i get it. that's why i'm not asking you, kyle, for an exact name. i know you wouldn't give it. >> right. they've dug their own grave by

just making concentration mistakes, you know? liz: exactly. >> when you think about silicon valley bank, they made the concentration mistake even in government securities that were no good and also in depositors -- i mean, the duration was no good, but depositors were also the majority uninsured. so they kind of had the double cocktail that sunk them. and, again, so that the weakest banks go down first, then a few handfuls of others. in the end, you know, the good news is, you know, look, there is another silver lining. i think our economy slows down pretty meaningfully in the next 12 month, and i think there's a great chance of additional huge frictions between china and taiwan which will slow the globe down which means come next year you're going to see rates falling and not rising. and that also will be a tailwind to banks at some point in time. liz: kyle, we have the next fed meeting less than a month away, and i know you just said that these bankers dug their own grave, i would agree.

but certainly, somebody kind of fashioning the shovel would have been of the federal reserve according to you because they raised rates way too quickly on the way up. but that said, what do you think the fed is going to decide? the market believes a pause. we just had rick reider of blackrock saying, well, everybody says they should pause but will they? >> right. first of all, i love rick. i haven't seen him in a while. second of all, when i think about, you know, they've raised 500 basis points in a year in which their expectations were for hem to to the raise 75 basis points. if you look back to january 1st of 2022. so they've kind of gone hog wild on the way up. and into a marketplace where they expanded the broad money supply by 40% in 18 months. we're all talking about service workers' wages and the phillips curve, and what we should be talking about is the simple price level. they moved the price level of homes and living by 40% over two

years, right? if apartment rents went up 18% in '21, 18% in '22, so they simply have to earn enough money to pay their rent. st it's why they're working two or three jobs, has nothing to do with the phillips curve. liz: kyle, great to have you. we've got to get you back sooner next time because so much is going to happen between now and mid june when the fed meets. thank you very much. >> pleasure to be here. liz: anytime. we are coming right back. we've got the dow down 170 points. and, yes, stay tuned, much more ahead including mr. gasparino. ♪ ♪ because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we had the same birthday. yes. it's really unbelievable when you think about it, because it's been, like, really over 20 years that you were my mother and father's banker, you became my banker and now fran is in her third year of college

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everybody knew something was coming. here is what they're telling him, if this is key in he wants to being president the united states, and win the republican nomination. they usualing him to avoid mistake of trump's 2016 opponents, that means go negative on trump. in 2016 until the very end you barely heard a real never saw a negative ad from donald trump or ted cruz anybody else. any of thighs main challengers. chris christie. what they're saying to ron desantis if you really want this, you have to go negative and you have to go negative fast. now what is his instincts? his instingses do it indirectly at first i'm told. lay back, let trump throw stuff at him. bob and weave through it but at some point even concedes he has to go negative. this is where this could get really nasty because desantis is a fund-raising machine. he will have unlimited funds from what i understand. he will have people like ken

griffin backing him up, elon musk is probably backing him up. he will have a lot of money backing him up. that means he has unlimited air. he can bombard airwaves negative on trump. there is positive on that and there is negative. you could lose trump voters in the long term. if he wants to win that is what they're telling him to do. whether he does the or not, when he does it, i don't know but clearly the people who have his ear, they're saying, we're talking this guy has tens of millions of dollars in the bank, do it, do it soon. you've been defined by trump. you have to redefine him. they also believe whether you believe it or not, i'm not saying i do, that trump's support even though big in the polls is squishy, no one really challenged him. this is the one guy that will directly challenge him, liz. liz: rope-a-dope first, then fisticuffs? >> that's what they're saying. we'll see. listen they were pretty right -- listen, i'm only as good as my sources. i don't, i can't guarranty ron

desantis does this. i can guarranty they told him to do it. liz: you were right first time around. charlie, thanks. dow, s&p, nasdaq all sees losing. nasdaq more than 1% to the downside here. we're seeing rate rise on short term treasury yields but jack so very, managing partner at rbo and company, he says what you know what? he likes stocks better that have good dividend yields. >> great to see you. liz: what are the good stocks that outdo one month treasury at .356 or 1.5%? >> people are talking about treasury bills, money market funds, excitement around the products. i think they're great for operational capital, short term capital. not really a long-term investment solution. ultimately the t-bill will reset in less than a year. you have to do something with it. so interest is a few names we like like jpmorgan. i was at investor day yesterday. very impressive show of deep

management team. jamie dimon spoke very little. discuss q and a. really an impressive bank that we've owned for a number of years. they're yielding about 3%. you go down tote small cap arena. west america bank yielding over 4%. finally money management business, t. rowe price is yielding over 4 1/2%. it has raises the dividend for 36 years plus 10% last year. liz: we had the full screen with the prompt of sort of the comparison between the two-year yield and then t. rowe price and of course west america bancorp r you worried a all? kyle bass was just on that some of these have big exposure to commercial real estate might go under here? >> i would add to the conversation, that the available to the public is loan to deposit ratio. they had hype every growth and as many or more loans than deposits. jpmorgan has 50% loan to deposit

ratio. west america bank has 15%. they're much different balance sheets and much different customers. jpmorgan, she said pang something banking is not a commodity businesses only if you make it one. the two banks i mentioned they're providing a customer deposit experience to run a business. if you have operational cash, you're not chasing yields versus a bank that is leading with lending and offering, trying to attract, cheapest loan product. liz: fellow cal bear sitting on the set with me. i'm so stoked. jack, great to have you. thank you very, very much. >> thank you for having me. [closing bell rings] tech, communication services health care are the biggest drags on the s&p. we have the s&p down 45 points. all the major indices see losses. we'll see yo