backstabbers financial survival guide. housing bubble. oh you mean there's a downside to artificially low mortgage rates don't get carried away that's kinds report. this is a boom bust so one bit the show you can't afford to miss i'm going to bore in washington coming up with the international monetary fund has issued a grim outlook for global growth in the wake of the coronavirus but when can we see a rebound we have expert analysis on hand to go over the details plus could we soon see if in tech giants moving into the cryptocurrency space will bring you a boom bust panel on the state of the sector but the facts show today so let's dive right in. and we leave the program with the international monetary fund's

announcement that the global economic downturn due to the corona virus pandemic will be worse than initial estimates so compared to the april 1 of the economic outlook we are projecting a deeper downtown in 2020 and a c.e.o. at a company in 2021 to growth to 2020 is projected at minus 4 point one percent which is 1 point one percent points below our april focused now this reflects the fact that in the 1st half economic outcomes came in somewhat worse than we had anticipated and because there is no medical suit you should we are expecting social distancing to persist for more for a long time into the 2nd half. and downgrading the growth for crest for 2021 the i.m.f. expects a growth rate of 5.4 percent instead of earlier estimates of 5.8 percent the fund is predicting an 8 percent contraction in the united states in 2020 while the eurozone economy will decline by 10.2 percent brazil will take

a 9 point one percent hit with the economy of mexico shrinking by as much as 10.5 percent just this year now the organization also pointed to a catastrophic toll on the labor market due to the pandemic saying there klein in work hours for the 2nd quarter will be the equivalent of losing 300000000 full time jobs worldwide the funds chief economist also spoke about the unpredictable nature of the pandemic making it difficult to judge where the world's economy will head in the near future so there is tremendous uncertainty around the full cost on the one hand you could get positive news you could have this news on the scenes and on treatments and grade a policy support and that can trigger a fast as a cavity but on the other hand there are important downside risks to ease that the virus could come back up you could have financial tightening that could lead to dest distress. and for more on this let's bring in some expert analysis from c.e.o. of quill intelligence and former fed insider daniel de martino booth and host of

economic update professor richard wolfe thank you both for joining us today that professor wolf i want to start with you here what do you make of this latest global forecast from the i.m.f. is this what you are seeing in the world's economy or do you think it might be much worse and what are you looking at when it comes to recovery. no i think my hat goes off to the i am after being able and willing to correct you know only now we can see room g. projections and to take into account i was serious. i'm in that relationship probably going to tell my colleagues here the united states that this is the worst collapse of capitalism since the great depression of the 93rd. we don't know how deep it will cut we don't know how long it'll last or one thing we know for sure is that it is already the most severe contraction and if history is any guide the ramifications of that with us and hurt us 3 years to come and no danielle

the i.m.f. chief economist also spoke about the role of central banks in fighting this economic crisis as well. substantial monetary and fiscal support will need to be continued but appropriate safeguards should be put in place the should be proper fiscal accounting fiscal transparency and when it comes to money policy central bank independence has to be maintained and with the i.m.f. advocating for central bank intervention danielle if this is going to be the new normal for the foreseeable future. you know i can't see a different path forward that the federal reserve for one has had such an impossible time trying to extricate itself from its very large balance sheet its attempt at quantitative tightening failed and the fed was was the chief central bank on planet earth that was able to normalize the most for as little as it accomplished headed into this next crisis when we saw that the european union went into recession with interest rates are already in the negative the same goes with

with japan so i think the i.m.f. point there it's going to be very difficult for central banks to step back from where they are given the projections for how long this this downturn is expected to be we're not expected to get jobs back for years and years to come so i think that the central banks will become a permanent fixture of sorts and now we're hearing a lot of bubble talk of these days earlier this week we talked about jeremy grantham the investor who called the last 3 financial bubbles saying that this bubble is the real mccoy as far as bubbles go and you're do any of your do any research in that if the fed continues to flood markets with liquidity it could risk the greatest financial bubble of all time now do you know is this a real concern of the fed actually worried about this bubble bursting or are they just trying to keep everybody's head above water at this point. so i think right now the fed is is it's the latter the fed is trying to prevent this bubble from popping but the problem is that in doing so it's unleashed all kinds record junk

bond issuance even as companies are being downgraded to junk they're issuing bonds on the open market we've had the most brisk few days in high yield issuance in history we tacked on over a trillion dollars of debt to an already over in debt corporate america balance sheet so we're setting ourselves up for a monumental decline and to your dennys point this truly is the mother of all bubbles and if the fed doesn't have some kind. internal recognition of this maybe not external maybe they're not speaking about it publicly but internally there has to be a tremendous amount of discussion about the potential ramifications of a 2nd wave of reclaim the u.s. economy and what that's going to mean for these lofty valuations you know professor of i want your opinion on all of this fed intervention what are you looking at here do you buy this as the biggest financial bubble in history. it sure looks like it

and i would have to argue that we are in one of those very dangerous situations where the federal reserve cannot stop supporting the the financial markets because it has tried and they choose not that even the last few weeks of cutting that at had already troubling results they can't stop it but they realize that if they don't they are in fact a rising stock market at the same time that the underlying economy is going extremely other way it would be hard to imagine this having a happy ending and i think it speaks to a level of problems that have not been that are blowing up inside of our economy and that i want them this system can cope with and that's the future i think we've raised and now on this show we often talk about how the stock market is not actually tied to the economy but what we constantly see movement on economic data

and when the u.s. equities saw substantial losses with news outlets attributing it to obviously the increase in covert cases that we're seeing here in the united states and this economic data from the i.m.f. then you know what is really going on here what are markets reacting to i mean after we've seen is this really just a normal ization after what we saw this last week with some pretty substantial gains. so i think a lot of us in the world of economics these days are allowed at data so to speak anecdotal data and i can tell you that the drive time to the studio is half of what it was just 2 weeks ago this afternoon and that we've seen reservations in route restaurant reservations in many of the cities that have reopened come crashing back down as people still begin to shelter in place doesn't matter if the government is mandating it a lot of people that they're seeing the data these are some of the the highest income earners in the nation and they're deciding to keep. that is their pocketbooks up again and to shelter in place once again this is going to have

a ripple through effect on the economy and i think that's what markets are reflecting most of all today professor wolf what are you saying i mean we've saw this record run in tech i obviously again when we talk bubbles tech is obviously there just keeps going up and we saw that record run actually kind of and today as we saw markets not i don't think plummet but we lost what 6700 points on the dow what are you seeing here when it comes to the u.s. stock markets i think i see extreme anxiety just and your other guest pointed out reservations at restaurants curling backwards and that. and that's everywhere that you ring out for trying to game. out on the wrist upswing funded by the last and how soon will something happen whether it's in the past or whether it's in the underlying weak economy to make people begin to think

like cutting the reservation they want to cut their exposure to the market and once that begins with a loss the level that had been funded by the federal reserve then crashed down and be as accurate if not more so this time than it was a few months ago professor richard wolffe host of economic up the c.e.o. of quill intelligent former teligent and former fed insider daniel de martino both thank you both for joining us today. thank you. and as markets real over reports of the surge in corona virus cases let's take a look at the global trends and spread of the crow virus with our chief correspondent saya tablet or no so we know that nations are doing everything they care to fly in those curves but how well are they doing right now or brand some are doing better than others and others are just starting to see a surge in cases now the u.s. and brazil are both doing worse followed by india and russia not countries that are

looking better and are illustrating that they are flattening the current are spain u.k. iran peru and chile and mexico but there's something else that i want to i want to take a look at that amongst the countries with the highest reported cases now for example of the u.s. with a population of 330000000 and they have conducted over 20 $9000000.00 tests now that's $90000.00 that's about $90000.00 per $1000000.00 population of the u.k. and russia have conducted a lot more testing they've done anywhere between 101-222-1250 extension 00 per $1000000.00 people but i want you to take a look at this for example brazil now they have a population of about $212000000.00 people yet they've only conducted about $12000.00 testing per 1000000 population india the other hand they're doing

a lot worse now they're down just 5000 test per 1000000 population and india with a population of 1300000000 people so expect those numbers in india to go up significantly in the coming days as they do more and more testing the same for brazil. can you break down the numbers here in the u.s. where we put it so specifically 7 states are reporting. record high numbers obama hospitalization since to pandemic now the u.s. is also recorded its 3rd highest total with over $36000.00 new cases and again that's the largest single day increase since the start of dependent but it's also not just about the cases you're right it's also how many of those infected would eventually need critical medical care and overwhelm the health care system and that's where again these 7 states come in a story where they're having the record number of hospitalizations now for example

in there just reported record number of deaths today and california gess hit a record today with more than 7000 new cases and texas more than 4000 people are hospitalized now that's more than double the number at the beginning of june and and these 7 same states are also among the 1st and most aggressive to reopen for example florida most restaurants and stores opened back on may 4th while gyms and stores were actually in full capacity in early june of the same went for texas and arizona but to give you a comparison you know a state like maine that's fewer than 2100 cases they announced that restaurants would not be open for indoor service any time soon so we're obviously seeing a trend here the sooner the states open up the more cases that we're seeing right now and because of all these spikes in numbers states like new york new jersey and

connecticut have just announced a 14 day mandatory quarantine for travelers coming from states with a 10 percent infection rate or higher and right now these states all have that 10 percent infection rate or more plus something else i want to point out is that none of these states that you see right here ever mandated to wearing a mask in public but again expect all of these to change because as you recall new york started with as the epicenter of the virus but now they're only at a 1 point one percent infection rate brant so correspondent thank you so much for keeping us up to date. and time now for a quick break but hang here because when we return could we soon see fin tech giants moving into the cryptocurrency space we'll bring you a boom bust panel on the state of the sector and as we go to break here are the numbers at the close. to.

what's needed national well that's not on that i want anybody to bless it that's only see it it was a propagandist you. heard from the regular morgue you're more you're talking not going to be moving through right. now oh. ah wash ashore psyche would all get us lucifer mistletoe is just that i'm like i don't i'm just i have nobody it is not my achievement mr davies out of 5 feet of plans for conceit but indeed and carried out by the people themselves if alan would produce or even floor it with the idea of making a film like this he probably be branded as crazy. how was the sentiment during the war the soviets were brave heroes resisting the nazis that's going to change of course after the war but once the cold war begins.

little people think that hollywood is a free place but really what is strictly defined by one side of the business and the other side is ideology. how would i define knowledge is a call to dream manufacture which i think's true but i think equally it's a problem in the fact. i know team no crowd. no shots. actually. you know well. know. which your thirst for. nuclear power become

a battleground in the us. people of demanding the shut down of a local plant. is right now my focus because it's a very dangerous. power plant the owner is attempting to run the reactive beyond its operational limits this case just sort of puts a magnifying glass where's the power in this country where's it going is it moving more towards corporate interests or is it more in the idea of a traditional thing just a. power lie with the people this case demonstrates that struggle is very real. struggle.

and welcome back nations throughout the world are struggling to combat the crow virus it continues to ravage economies sending some into recessions no economists claim an increased tax on the wealthy might help alleviate some of this pain but so far not many have done so just days before russia's scheduled to vote on constitutional reforms russian president vladimir putin and now it's a tax increase for the wealthy as a way to stimulate the economy some a little of what it was since the beginning of the pandemic was the main goal was to keep the basic revenue of russian households keep the employment to help people and solve their problems to support the economy through them. and taxes will increase from 13 to 15 percent for those earning more than $5000000.00 rubles that's the equivalent of roughly $72000.00 american dollars this is the 1st tax hike on wealthy russians since a flat tax was introduced in 2001 the country's g.d.p. is expected to do decrease by 6 percent due to the pandemic russia won't be the

only nation raising taxes during the pandemic beginning in july saudi arabia will impose a 15 percent value added tax on all good produced in the country raising the vat rate from its current 5 percent level. and huge news in the digital currency world as digital payment giant pay pal is reportedly looking at whether or not to offer direct sales of bitcoin and other cryptocurrency to more than 300000 w3cw users globally through its mobile subsidiary then mild some reports indicate that this service could be available in the next 3 months or even sooner joining us now to discuss arbusto host ben swan and kristie i ben i want to actually start with you here how big of a push was this give kryptos currencies like bitcoin. yeah if you want to know how big it's going to be it goes back to right now when you had a little bit of a pause there when you almost said 300000 had to correct it 300000000 users using

pay-pal worldwide that's how big this is on we're talking about the ability for pay pal to reach into audiences that that where big coing and alternative coins have never been before just to give you an example of how big we're talking about you know coinbase is probably the most famous exchange in the united states for big coin they have about 11000000 users 11000000 on coinbase buy nance which kristie is very familiar with knows the guys over there by nancy very well they're the largest in the world they have about 15000000 users so when you're talking about a company a behemoth company like pay pal possibly stepping into this space and introducing about 305000000 users to cryptocurrency it's a very big deal the real i think issue is whether or not it's just because or which alternative coins are all coins get to be a part of this is well because if you are in all coins and you manage to get on the pay pal's platform it would send you skyrocketing so it'll be very interesting to

see how that part of the story plays out kristie we know the other payment processors have gone down this road before pay pal's primary fin tech rival square launched bitcoin transactions in its cash app in the 1st quarter of the service generated 306000000 in because revenue alone now is it only a matter of time before pay pal gets into this space at this point. yeah it was doubly only a matter of time before all of these legacy payment processes jumped on board the bandwagon and it's not because they're necessarily believers are cooked on the busiest or anything but because of the opportunity because it's profitable and became trendy and pay pal just like square and facebook libra they're all seeing this as a very lucrative opportunity so at this is a big deal but it's also kind of sad when crypto which was designed to be free and get access to the masses but instead now you have the tech and the he meant stepping and self appointing themselves to be the good keepers the middleman to get access very selective point they said ben just mentioned when the entire point of

crypto is to cut out the middleman but sadly we do kind of live in an age of convenience and so the easier the more convenient the more dumbed down and at makes it for the ordinary user to get access to it quite the more people continue to do use it and adopt it and the more powerful that middleman gatekeeper becomes so right now in a really good position to capitalize on this opportunity seeing that they are already have that partnership with on base so by offering to sell script on the platform they acquire within reach of its 300000000 active users so it's a double edged sword on one hand it will increase their points exposure and visibility to the average person but then on the other nor completely and trusting an intermediary to hold and store and transact your funds which is completely defeating the purpose of owning that line now ben we know that crypto currency faces it a lot of regulatory hurdles specially here right here in the united states so what is that what is standing in the way of pay pal actually going down this road or

saying that we could see it in as soon as 3 months maybe even sooner so what's in the way of this well i think there's a couple of things remember the that there is a still a big disconnect between the way the i.r.s. views cryptocurrency and the way the rest of the world these crypto currency so here in the u.s. when we talk about crypto currency we refer to it as a currency an actual exchange of value the same as with the do. dollar and that's an exchange of value and so that's how the general public views cryptocurrency the i.r.s. use crypto currency as property or as a as a as an asset so if you say i'm going to purchase you know some bitcoin today the i.r.s. says you just purchased property not that you that you're trading currency so there is a big kind of disconnect between the way the government in this country and government agencies view cryptocurrency versus the way that it's viewed on these platforms so even though or a pay pal is treating it like you know any crypto currency like it is a currency but i also want to say very quickly to christie's point i think this is important you know she was mentioning that there is kind of

a standard view of how it should be for if you're a purist for big coin or a purist for crypto currency that you're supposed to be cutting out the middleman and that is absolutely that is absolutely accurate the problem that we're going to run into with a company like pay pal coming in is that it will also help to drowned out or crush smaller crypto currencies that have different function than that coin and might in some cases even be more effective or a better technology than that point but because people can access it in a very convenient way or as she said a middleman in between which a lot of people like the idea of those alternative currencies are going to get crushed. kristie is there something that stands in the way of getting onto an exchange like this or why is it so different sometimes you see only 5 coins offered obviously because it's offered everywhere but how do you how do you get as many coins on to a platform as possible. while one thing is out as a always a huge process of the on boarding fee but on the other

a bigger issue is the fact of the cordy decline and all the top $3.00 coins are going to be the most likely going to rebel that are going to be the most liquid and therefore the most accessible so when i would have a middleman such as the transactions for you of course want to limit their risk and exposure so obviously in our to do that they have had a quick access to spot markets with all the exchanges so the way that to limit their risk on. holding all of these assets to minimize the price fluctuations is to of course transact in the most liquid currencies and that's the barrier for a lot of these all coins simply because there's not a lot of training volume and you know kristie i can't let this segment go without talking a little bit about the price of because what are your thoughts on the price a big point seemingly being stuck around $9600.00 of course today as everything went down to drop down to 9300 but what are you seeing here why is it having a hard time especially this month breaking through that barrier. well they take a little dump this morning but we are still holding well above the 10 day and the

50 day moving average so we're kind of nearing the equities market a little bit but the big reason why we are currently stuck in this $1000.00 range is basically the derivatives market the derivatives market is continuing to grow and there's currently a record setting $1000000000.00 notional set to expire this friday the $26.00 so that's actually quite exciting but if we look at where the open interest is concentrated the majority is at 10011002 the upside but on the downside we're looking at the 1000 strike which is currently in the money so now looking at the slow data a good amount of traders are selling these 10011000 strikes and buying the $1000.00 so that's why there's so much resistance at the 10000 because of prices start to rise the call sellers are going to take a short positions to keep the market from scaling the 10000 mark so it has to stay within this range into expertise for all of these call sellers to profit so this is definitely the largest quite option expert by a mile right now this week so it is expected that the aftermath could be quite all it'll. ben swan and christiane thank you so much for breaking all this down for us

. and that's it for this time you can catch boom bust on demand on the brand new portable t.v. up a billboard smartphone through google play on the apple app store by searching portable t.v. could also find it on apple t.v. devices or simply just go to portable dot t.v. see you next on. every single corporation in america pretty much it doesn't do what it says it does a good companies don't make food a cartel based on my cars the computers don't make computers they don't do what they say they're doing all they're doing is they're gaming the system by getting a free pass from the spread if you're part of the privileged class and then. whipping that up to d.c. you pay days for the executives.

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but we can by using gets underway in russia on amendments to the country's constitution the 1st time people can vote online as a precaution against 9 to. now just as many nations do start to relax over the coronavirus the world health organization has warned that the pandemic is actually accelerating the number of countries to leave and start reporting a 2nd wave of infection and. not only 30000000 prime industry both. national. and hungary sports loving foreign ministers paisa visit here that are taking not just for a game of table football but also an exclusive interview where he does touch on.