the viewpoint from our next guest, fdci, former chair there, volcker alliance founding director, sheila bairof fact. what points out to me, two wars, increasing age population, increasing trade restrictions none of those go away anytime soon. theoretically we could go through 2024 with no rate cuts? >> i think that's right, we could. we have just don't h don't know. wall street is premature raising expectation there is will be early rate cut next year. we don't know if inflation is is. my guess they will continue to focus more on making sure inflation is beat, not cutting rates. charles: to that point of all these different variables this week the treasury talker shuns might be more important than the fomc meeting this week, right? >> that's true. charles: you have over 100 billion in 10-year and 30 year notes and bonds, 213 billion in bills. your thoughts on how these would be received because we've had mixed -- these auctions come in, they're perceived being not enough, not enough buyers. it is wrecked the market. >> right. charles: if it is perceived being somewhat stuck sesful we've been

we will bring in another big voice to discuss the banking industry with the former fdic chair sheila bairsomething that's been fascinating about what's happening in congress is you have both democrats and republicans frustrated with the fdic and the federal reserve. is the focus shifting so much on the regulators that it's almost leaving the big banks? >> that's a good question. the figures last spring, those were badly managed banks and the responsibility rests with the management of those banks. that said, many things have been done since then and it clearly shows there is opportunity for improvement in the supervisory process at the fed and the fdic. some of those issues i don't think i been addressed very well. this needs to be front and center. the supervisory process is problematic so when regulators see problems, they are not empowered to act quickly. there are layers of approvals. some of the metrics the examiners use that are set by regulation or by guidance, liquidity ratios, capital ratios, they don't really work as early warning systems when you have a rising interest rate env

sheila bair.of all, is it p premature, and the implications, if you think that it's premature to pivot, there are a lot of other things that have to be unwound. not have to be, but they look too lofty. >> i mean, if you would ask any of us a year ago, would the fed be cutting rates with stocks at all-time highs, we would probably say no. right there is a reflection that a lot of this is happening in a very different environment than most expected. >> yeah, i thought that he was going to dress up or down, however you want to phrase it, the window. i didn't think chair powell was going to talk about cutting rates until the day they cut rates. so, this was a shock to me that they're even discussing it now, but i always thought that they would have to -- they pigeon holed himself. they painted themselves into a corner, because they had to be so tough on inflation that it was impossible for him to talk about actually cutting rates. so, now, everyone got pushed to the other side of the boat, and the rea

sheila bair ran the fdic for many years, we have not seen the smaller mid-sized bank to go under.. we've moved from this acute liquidity problem at these banks where they don't have enough cash to meet their withdrawals, to this kind of slower-moving earnings problem, you have zombie banks out there now having to pay up for deposits, which they didn't have to do before, and they're having these loan problems where loans are going bad, fewer new loans being written at more profitable rates, and they're just getting massively squeezed and you're going to see some real problems there. >> two more quick ones, i'm contractually obligated to mention anthony scaramucci. i'm more centered in what sharon block, former biden administration official has to say about the rise of unions, we saw unions had a huge year in 2023, auto workers just one of them. she goes so far as to say that tesla may be unionized this time next year. >> that was the most interesting prediction to me, you sad auto workers, u.p.s.. >> hollywood. >> hollywood, obviously, and some of that is the luck of the calendar,