ECONOMIC HIT FROM COVID-19

March 24, 2020 at 7:15 pm

ECONOMISTS COMPARE EFFECTS OF CORONAVIRUS CRISIS TO IMPACT OF NATIONAL DISASTERS, SAYS NYMAG’S JOSH BARRO 

BARRO ADDS MOST IMPORTANT THING GOVERNMENT CAN DO FOR ECONOMY IS FIGHT COVID-19 SUCCESSFULLY 

SAYS PEOPLE NEED TO FEEL BAILOUTS ARE FAIR; POLICYMAKERS MUST ALSO ACT WITH SPEED AND MAKE RESPONSE LARGE ENOUGH

Millions are facing unemployment and businesses are in a steep decline. The disruption and turmoil caused by the coronavirus has impacted our personal lives, our professional lives and the future of the economy. But from the stock market to individual jobs to the world banking situation, where are we headed? What is the prognosis? And how will we get past this? New York Magazine Business Columnist Josh Barro says the government has a very important role to play in terms of making sure the safety net holds for Americans. He joins us.

Aired on March 24, 2020. 

Transcript Print

00:00:00:04 00:00:02:18 WELCOME TO "METROFOCUS," I'M
00:00:02:18 00:00:03:02 JACK FORD.
00:00:03:02 00:00:05:11 AS WITH MANY OF YOU OUT THERE,
00:00:05:11 00:00:06:28 WORKING FROM HOME TODAY.
00:00:06:28 00:00:08:18 TAKING A DIFFERENT LOOK AT SOME
00:00:08:18 00:00:11:05 OF THE SIGNIFICANT ISSUES THAT
00:00:11:05 00:00:13:13 ARE IMPACTING US FROM A
00:00:13:13 00:00:14:12 DIFFERENT VENUE.
00:00:14:12 00:00:16:01 WE AT "METROFOCUS" WANT TO MAKE
00:00:16:01 00:00:20:18 SURE EVEN WITH THE DISRUPTION
00:00:20:18 00:00:21:13 AND TURMOIL WE'RE EXPERIENCING,
00:00:21:13 00:00:23:27 WE'RE PROVIDING YOU MOST
00:00:23:27 00:00:25:24 IMPORTANT INFORMATION.
00:00:25:24 00:00:27:17 DISRUPTION AND TURMOIL, IMPACT
00:00:27:17 00:00:29:13 ON PERSONAL LIVES, PROFESSIONAL
00:00:29:13 00:00:32:09 LIVES AND AS WE'RE SEEING ON THE
00:00:32:09 00:00:33:01 ECONOMY.
00:00:33:01 00:00:34:03 STOCK MARKET TO INDIVIDUAL JOBS
00:00:34:03 00:00:35:28 TO THE FEDERAL GOVERNMENT TO THE
00:00:35:28 00:00:37:12 WORLD BANKING SITUATION.
00:00:37:12 00:00:39:19 WHERE ARE WE GOING WITH ALL
00:00:39:19 00:00:39:26 THAT?
00:00:39:26 00:00:41:11 WHAT ARE THE PROBLEMS AND HOW
00:00:41:11 00:00:44:11 ARE WE GOING TO GET PAST THIS ON
00:00:44:11 00:00:47:18 WHAT MAY BE OUR NEW NORMAL
00:00:47:18 00:00:47:25 REALITY.
00:00:47:25 00:00:51:22 JOINING US NOW, JOSH BARROW,
00:00:51:22 00:00:58:01 BUSINESS COLUMNIST, HOST OF
00:00:58:01 00:01:01:10 KCRW's "LEFT, RIGHT AND CENTER,"
00:01:01:10 00:01:03:10 GOING TO LOOK FOR ANSWERS TODAY.
00:01:03:10 00:01:04:02 >> ALL RIGHT.
00:01:04:02 00:01:06:06 >> LOOK AT COUPLE OF DIFFERENT
00:01:06:06 00:01:10:10 THINGS THAT YOU'VE BEEN TALKING
00:01:10:10 00:01:11:16 ABOUT.
00:01:11:16 00:01:13:06 LET'S START WITH THE STOCK
00:01:13:06 00:01:15:25 MARKET.
00:01:15:25 00:01:20:12 HEADLINES EVERY DAY, UP, DOWN,
00:01:20:12 00:01:21:24 VERTIGO INDUCING WHAT WE'RE
00:01:21:24 00:01:22:26 SEEING WITH THE STOCK MARKET.
00:01:22:26 00:01:25:21 WHY IS THE STOCK MARKET ITSELF
00:01:25:21 00:01:27:27 AND ITS PERFORMANCE SO IMPORTANT
00:01:27:27 00:01:31:03 IN THE MIDST OF A CRISIS SUCH AS
00:01:31:03 00:01:31:09 THIS?
00:01:31:09 00:01:32:24 >> FOR TWO REASONS.
00:01:32:24 00:01:34:26 ONE, IT AFFECTS A LOT OF
00:01:34:26 00:01:35:29 INDIVIDUALS WHO OWN STOCKS.
00:01:35:29 00:01:39:00 TO THE HALF THAT DON'T OWN
00:01:39:00 00:01:40:17 STOCKS, HALF DO.
00:01:40:17 00:01:42:17 IT'S IMPORTANT FOR PEOPLE'S
00:01:42:17 00:01:44:08 FINANCIAL CONDITION, COUNTING ON
00:01:44:08 00:01:45:10 THIS FOR RETIREMENT.
00:01:45:10 00:01:47:07 AND WHEN YOU HAVE A DROP LIKE
00:01:47:07 00:01:51:07 THIS, NORTH OF 30%, STARTS TO
00:01:51:07 00:01:53:03 RE-EVALUATE WHAT THEIR WEALTH
00:01:53:03 00:01:54:00 ALLOWS THEM TO DO.
00:01:54:00 00:01:55:04 BUT STOCK MARKET HAS BEEN
00:01:55:04 00:01:57:16 INDICATOR OF THE ECONOMY,
00:01:57:16 00:01:59:10 OUTLOOK FOR THE ECONOMY AND
00:01:59:10 00:02:01:05 INDICATOR HOW BAD THIS PANDEMIC
00:02:01:05 00:02:04:25 IS LIKELY TO DISRUPT SOCIETY.
00:02:04:25 00:02:05:12 PEOPLE HAVE BEEN TRYING TO
00:02:05:12 00:02:08:04 FIGURE OUT HOW SERIOUSLY TO TAKE
00:02:08:04 00:02:09:26 THIS, FINALLY SETTLED ON VERY,
00:02:09:26 00:02:11:21 VERY SERIOUSLY.
00:02:11:21 00:02:13:26 BUT MARKETS, PUBLIC
00:02:13:26 00:02:14:16 CONVERSATIONS IN LATE JANUARY,
00:02:14:16 00:02:16:08 EARLY FEBRUARY, SORT OF A SENSE
00:02:16:08 00:02:18:18 MAYBE THIS WILL BE LIMITED TO
00:02:18:18 00:02:19:28 CHINA MOSTLY.
00:02:19:28 00:02:22:11 THAT MATTERED TO STOCK MARKET
00:02:22:11 00:02:24:18 BECAUSE CHINESE ECONOMY, IF
00:02:24:18 00:02:26:24 COMPANY RELIED ON SUPPLY CHAIN
00:02:26:24 00:02:29:14 OUT OF CHINA, AN EFFECT THERE.
00:02:29:14 00:02:31:09 BUT MOSTLY LOOKED NOT THAT
00:02:31:09 00:02:33:02 IMPORTANT TO THE U.S. ECONOMIC.
00:02:33:02 00:02:34:11 ONCE PEOPLE REALIZED THIS WAS
00:02:34:11 00:02:36:24 GOING TO BE A GLOBAL PANDEMIC
00:02:36:24 00:02:37:26 THAT CAUSES DEATH AND
00:02:37:26 00:02:39:26 DESTRUCTION ALL OVER THE WORLD,
00:02:39:26 00:02:40:27 STARTED TO TANK STOCK MARKETS
00:02:40:27 00:02:43:00 ALL OVER THE WORLD.
00:02:43:00 00:02:44:03 GOING TO AFFECT BUSINESS
00:02:44:03 00:02:46:07 PERFORMANCES AND HAS IMPACTS FOR
00:02:46:07 00:02:46:16 INDIVIDUALS.
00:02:46:16 00:02:47:25 ALL THE PEOPLE GETTING LAID OFF
00:02:47:25 00:02:51:13 NOW WHO WORK IN RESTAURANTS AND
00:02:51:13 00:02:51:20 HOTELS.
00:02:51:20 00:02:53:09 AIRLINES AROUND THE WORLD AND
00:02:53:09 00:02:57:01 U.S. DOING INVOLUNTARY FURLOUGHS
00:02:57:01 00:03:01:14 OF EMPLOYEES WITH LESS FLYING.
00:03:01:14 00:03:04:26 SEEING INVESTORS SAYING WE THINK
00:03:04:26 00:03:05:14 PROFITS ARE GOING TO BE LESS
00:03:05:14 00:03:08:10 THAN EXPECTED, COMPANIES
00:03:08:10 00:03:09:27 EMPLOYING FEWER PEOPLE, FEWER
00:03:09:27 00:03:10:28 CUSTOMERS, BIG CHANGES FOR ALL
00:03:10:28 00:03:14:22 OF US, EVEN IF WE DON'T OWN
00:03:14:22 00:03:14:29 STOCKS.
00:03:14:29 00:03:16:27 >> THE VOLATILITY, IS THAT
00:03:16:27 00:03:18:13 SOMETHING WE SHOULD BE SURPRISED
00:03:18:13 00:03:19:17 ABOUT OR SOMETHING YOU MIGHT
00:03:19:17 00:03:22:13 HAVE EXPECTED GIVEN THE WHIPSAW
00:03:22:13 00:03:24:07 EFFECT WE'VE HAD IN TERMS OF
00:03:24:07 00:03:25:14 NEWS AROUND THE WORLD?
00:03:25:14 00:03:28:04 >> THE VOLATILITY MAKES SENSE TO
00:03:28:04 00:03:28:10 ME.
00:03:28:10 00:03:30:02 IT IS SO HARD TO FIGURE OUT HOW
00:03:30:02 00:03:31:19 BIG THIS THING IS GOING TO BE,
00:03:31:19 00:03:33:10 HOW MUCH IT'S GOING TO AFFECT
00:03:33:10 00:03:35:00 EVERYTHING, INCLUDING BUSINESS.
00:03:35:00 00:03:37:02 SO STOCK PRICES SHOULD BE STABLE
00:03:37:02 00:03:38:17 WHEN IT'S PRETTY CLEAR TO PEOPLE
00:03:38:17 00:03:40:19 WHAT THE LONG RUN FINANCIAL
00:03:40:19 00:03:41:23 PICTURE IS FOR COMPANIES.
00:03:41:23 00:03:43:04 THEY HAVE A PRETTY GOOD IDEA
00:03:43:04 00:03:45:12 WHAT KIND OF PROFIT A COMPANY IS
00:03:45:12 00:03:46:22 GOING TO MAKE LONG-TERM.
00:03:46:22 00:03:48:06 THAT'S WHAT STOCK PRICE IS,
00:03:48:06 00:03:50:27 PRESENT VALUE OF FUTURE PROFITS.
00:03:50:27 00:03:54:01 NOW THE OUTLOOK IS UNCERTAIN.
00:03:54:01 00:03:56:05 DON'T KNOW IF THE SHUTDOWNS ARE
00:03:56:05 00:03:59:21 A FEW WEEKS, A FEW MONTHS, WHICH
00:03:59:21 00:04:01:03 REGIONS OF THE WORLD -- NOW
00:04:01:03 00:04:03:13 LOOKING AT ESSENTIALLY ALL THE
00:04:03:13 00:04:05:00 UNITED STATES BUT HAVE BEEN
00:04:05:00 00:04:07:14 QUESTIONS ABOUT GEOGRAPHY AND
00:04:07:14 00:04:07:29 DURATION.
00:04:07:29 00:04:10:19 NOT JUST BECAUSE LOSING OUT ON
00:04:10:19 00:04:11:18 THREE MONTHS OF BUSINESS IS
00:04:11:18 00:04:15:07 WORSE THAN ONE MONTH, BUT THEY
00:04:15:07 00:04:17:08 BECOME HARDER TO COME BACK FROM.
00:04:17:08 00:04:19:22 TALKING TO ECONOMISTS, FIRST
00:04:19:22 00:04:21:10 ANALOGY IS NATURAL DISASTER.
00:04:21:10 00:04:22:23 RECOVERING FROM HURRICANE,
00:04:22:23 00:04:24:23 EARTHQUAKE, THAT SORT OF THING.
00:04:24:23 00:04:29:03 AND RECOVERIES OUT OF ECONOMIC
00:04:29:03 00:04:31:20 RECESSIONS CAUSED BY NATURAL
00:04:31:20 00:04:32:20 DISASTERS TEND TO BE FAST.
00:04:32:20 00:04:35:27 PEOPLE GO BACK TO WHAT THEY WERE
00:04:35:27 00:04:37:03 DOING BEFORE AND ECONOMY GOES
00:04:37:03 00:04:41:01 BACK TO NORMAL FASTER THAN
00:04:41:01 00:04:44:06 FINANCIAL CRISIS LIKE 2008.
00:04:44:06 00:04:45:24 THAT ASSUMES A QUICK TURNAROUND,
00:04:45:24 00:04:47:28 COUPLE OF WEEKS OF CLOSURE DUE
00:04:47:28 00:04:49:13 TO STORM.
00:04:49:13 00:04:51:05 LONGER IT GOES, HARDER TO TURN
00:04:51:05 00:04:52:21 THE LIGHTS ON.
00:04:52:21 00:04:54:27 CLOSE FOR THREE WEEKS AND REOPEN
00:04:54:27 00:04:56:14 RESTAURANT, CAN BRING BACK ALL
00:04:56:14 00:04:58:02 THE SAME EMPLOYEES.
00:04:58:02 00:05:00:13 CLOSE FOR MONTHS, LOT OF THEM GO
00:05:00:13 00:05:02:12 DO SOMETHING ELSE AND YOU'RE
00:05:02:12 00:05:04:05 MORE LIKELY -- GOING TO BE A LOT
00:05:04:05 00:05:07:04 OF AWKWARD CONVERSATIONS BETWEEN
00:05:07:04 00:05:09:03 BUSINESS OWNERS AND LANDLORDS.
00:05:09:03 00:05:10:18 RESTAURANT OWNERS NOT ABLE TO
00:05:10:18 00:05:11:04 PAY RENT.
00:05:11:04 00:05:13:13 I THINK THE LANDLORDS WILL
00:05:13:13 00:05:15:26 REALIZE THEY'RE BEST OFF LETTING
00:05:15:26 00:05:18:05 THEM STAY BECAUSE NOT GOING TO
00:05:18:05 00:05:19:08 FIND NEW TENANT NOW.
00:05:19:08 00:05:21:03 BUT NOT ALL GOING TO MAKE THOSE
00:05:21:03 00:05:22:22 DECISIONS AND LANDLORD HAS TO
00:05:22:22 00:05:28:11 HAVE CONVERSATIONS WITH LENDERS.
00:05:28:11 00:05:30:11 IF HE'S NOT GETTING RENT, CAN HE
00:05:30:11 00:05:32:17 PAY HIS LENDERS?
00:05:32:17 00:05:34:16 I THINK THAT'S SOMETHING ALSO
00:05:34:16 00:05:35:24 WEIGHING ON STOCK MARKETS.
00:05:35:24 00:05:39:07 >> A LOT OF PEOPLE IN THE
00:05:39:07 00:05:39:26 BEGINNING THOUGHT STOCK MARKET
00:05:39:26 00:05:41:20 YOU'RE GOING TO SEE
00:05:41:20 00:05:44:20 TRANSPORTATION INDUSTRY HIT,
00:05:44:20 00:05:46:06 HOSPITALITY INDUSTRY HIT.
00:05:46:06 00:05:50:21 BUT AS YOU LOOK AT LONG RANGE
00:05:50:21 00:05:53:06 SCENARIO, BEST WE CAN TELL -- WE
00:05:53:06 00:05:55:07 DON'T KNOW HOW LONG OR SHORT THE
00:05:55:07 00:05:58:14 LONG RANGE MIGHT BE, BUT SHOULD
00:05:58:14 00:06:01:04 BE BE CONCERNED ABOUT OTHER
00:06:01:04 00:06:03:05 SECTORS OF THE ECONOMY?
00:06:03:05 00:06:04:15 >> WITH A STOCK MARKET DECLINE
00:06:04:15 00:06:07:05 THIS BIG, NO SURPRISE IT'S
00:06:07:05 00:06:08:21 ENTIRE ECONOMY, SOME SECTORS
00:06:08:21 00:06:10:13 HURT MORE THAN OTHERS.
00:06:10:13 00:06:12:04 TRANSPORTATION, HOSPITALITY,
00:06:12:04 00:06:14:27 ENERGY ALSO HIT HARD BECAUSE OIL
00:06:14:27 00:06:17:06 PRICES HAVE FALLEN SHARPLY.
00:06:17:06 00:06:18:26 PARTLY BECAUSE OF THE CRISIS
00:06:18:26 00:06:20:13 LESS DEMAND AND PARTLY BECAUSE
00:06:20:13 00:06:23:12 FIGHT BETWEEN THE SAUDIS AND
00:06:23:12 00:06:25:07 RUSSIANS RAMPING UP PRODUCTION
00:06:25:07 00:06:26:10 INSTEAD OF STEPPING DOWN IN TIME
00:06:26:10 00:06:27:28 OF CRISIS.
00:06:27:28 00:06:33:04 BUT ALMOST ENTIRE ECONOMY,
00:06:33:04 00:06:35:04 COMPANIES' STOCK PRICES ARE
00:06:35:04 00:06:35:11 FALLING.
00:06:35:11 00:06:37:15 A FEW EXCEPTIONS, COMPANIES THAT
00:06:37:15 00:06:40:01 WILL GET BUSINESS FROM THIS.
00:06:40:01 00:06:41:19 PHARMACEUTICAL COMPANY THAT
00:06:41:19 00:06:44:22 MAKES ANTIVIRAL DRUGS, STOCK MAY
00:06:44:22 00:06:44:28 BE UP.
00:06:44:28 00:06:47:22 SOME SECTORS HOLDING UP,
00:06:47:22 00:06:49:09 CONSUMER ESSENTIALS LIKE
00:06:49:09 00:06:50:28 WALMART, NOT GOING TO
00:06:50:28 00:06:52:24 RESTAURANTS BUT STILL SHOPPING,
00:06:52:24 00:06:55:27 MAYBE EVEN BUYING MORE
00:06:55:27 00:06:56:05 GROCERIES.
00:06:56:05 00:06:57:22 CLOROX HAS BEEN A STRONG
00:06:57:22 00:06:59:03 PERFORMER BECAUSE BUYING A LOT
00:06:59:03 00:07:01:26 OF DISINFECTING GOODS.
00:07:01:26 00:07:03:19 BUT OVERALL BAD FOR ENTIRE
00:07:03:19 00:07:07:11 ECONOMY BECAUSE OF THE KNOCKOFF
00:07:07:11 00:07:07:18 EFFECTS.
00:07:07:18 00:07:10:13 NOT GOING TO WORK, NOT EARNING
00:07:10:13 00:07:12:24 PAYCHECKS, NOT SPENDING MONEY ON
00:07:12:24 00:07:13:01 THINGS.
00:07:13:01 00:07:14:17 EVEN IN SECTORS THAT PEOPLE CAN
00:07:14:17 00:07:15:27 CONTINUE WORKING.
00:07:15:27 00:07:17:19 >> THE FEDERAL GOVERNMENT, WHAT
00:07:17:19 00:07:19:02 THEY'VE ATTEMPTED TO DO, WHAT
00:07:19:02 00:07:20:29 YOU THINK THEY CAN DO IN TERMS
00:07:20:29 00:07:23:14 OF HAVING IMPACT ON THIS.
00:07:23:14 00:07:27:04 WE'VE SEEN PROCLAMATIONS AND
00:07:27:04 00:07:28:19 REDUCTION IN INTEREST RATES AND
00:07:28:19 00:07:31:04 VARIOUS IDEAS ABOUT FISCAL
00:07:31:04 00:07:31:14 POLICY.
00:07:31:14 00:07:35:19 LET'S START OFF FIRST WITH WHAT
00:07:35:19 00:07:38:01 SORT OF WEAPONS, IF YOU WILL,
00:07:38:01 00:07:40:16 GENERALLY SPEAKING, WOULD THE
00:07:40:16 00:07:44:05 GOVERNMENT HAVE TO SOMEHOW JUMP
00:07:44:05 00:07:47:27 IN AND ASSUAGE THE ECONOMY
00:07:47:27 00:07:48:26 PROBLEMS HERE?
00:07:48:26 00:07:50:20 GIVEN THE UNDERLYING CRISIS
00:07:50:20 00:07:51:22 WE'RE DEALING WITH.
00:07:51:22 00:07:53:03 >> MOST IMPORTANT THING THE
00:07:53:03 00:08:01:03 GOVERNMENT CAN DO TO SUPPORT THE
00:08:01:03 00:08:01:21 ECONOMY AND BUSINESS IS FIGHT
00:08:01:21 00:08:02:04 THE VIRAL INFECTION
00:08:02:04 00:08:02:14 SUCCESSFULLY.
00:08:02:14 00:08:03:08 MORE THEY CAN SHORTEN THE
00:08:03:08 00:08:05:15 DURATION AND REDUCE NUMBER OF
00:08:05:15 00:08:06:23 PEOPLE DYING OR SERIOUSLY ILL
00:08:06:23 00:08:11:00 BECAUSE OF THIS, MORE QUICKLY
00:08:11:00 00:08:13:07 ABLE TO STOP THE SPREAD AND CAN
00:08:13:07 00:08:15:21 GO BACK TO SOMETHING LIKE NORMAL
00:08:15:21 00:08:17:24 LIFE, BETTER FOR THE ECONOMY.
00:08:17:24 00:08:19:20 THAT'S JOB ONE.
00:08:19:20 00:08:20:24 MESSAGE PRESIDENT STARTED
00:08:20:24 00:08:22:17 GETTING OUT EARLIER THIS WEEK,
00:08:22:17 00:08:23:18 PRIMARY FOCUS.
00:08:23:18 00:08:26:06 THERE ARE ROLES FOR OTHER
00:08:26:06 00:08:28:02 ASPECTS OF GOVERNMENT POLICY.
00:08:28:02 00:08:31:11 SHARP INTEREST RATE CUTS, TWO
00:08:31:11 00:08:33:01 UNSCHEDULED, TAKING SHORT-TERM
00:08:33:01 00:08:35:11 DOWN TO ZERO.
00:08:35:11 00:08:37:04 NORMALLY MAKE IT EASIER FOR
00:08:37:04 00:08:41:08 CONSUMERS TO CONSUME.
00:08:41:08 00:08:43:00 CAN BORROW MORE CHEAPLY AND MAKE
00:08:43:00 00:08:48:27 IT CHEAPER FOR BUSINESSES TO
00:08:48:27 00:08:49:27 INVEST BUT RIGHT NOW NOT GOING
00:08:49:27 00:08:51:18 TO GET PEOPLE TO INVEST.
00:08:51:18 00:08:53:11 IF THEY FEEL RICHER, NOT GOING
00:08:53:11 00:08:55:22 TO SPEND MORE IN RESTAURANTS.
00:08:55:22 00:08:58:04 IT WILL SUPPORT THE ECONOMY OUT
00:08:58:04 00:08:59:21 OF THE CRISIS, TRYING TO SCALE
00:08:59:21 00:09:02:14 UP AND GO BACK TO WORK, REOPEN
00:09:02:14 00:09:03:22 BUSINESSES, LOW INTEREST RATES
00:09:03:22 00:09:05:10 WILL MAKE IT MORE AFFORDABLE.
00:09:05:10 00:09:07:14 FED IS SUPPORTING THE FINANCIAL
00:09:07:14 00:09:09:18 SYSTEM, ENSURE THE AVAILABILITY
00:09:09:18 00:09:11:11 OF CREDIT TO BUSINESSES THAT DO
00:09:11:11 00:09:12:20 WANT TO BORROW.
00:09:12:20 00:09:14:27 THAT'S IMPORTANT TO PREVENT
00:09:14:27 00:09:15:29 COLLAPSES IN CONFIDENCE IN THE
00:09:15:29 00:09:18:01 FINANCIAL SYSTEM THAT CAN CAUSE
00:09:18:01 00:09:20:15 PROBLEMS IN BUSINESSES THAT
00:09:20:15 00:09:22:05 SHOULD BE RELATIVELY UNAFFECTED
00:09:22:05 00:09:23:15 BY THIS.
00:09:23:15 00:09:26:13 THERE'S A ROLE FOR FISCAL
00:09:26:13 00:09:26:20 POLICY.
00:09:26:20 00:09:28:24 LOT OF PEOPLE WILL HAVE ACUTE
00:09:28:24 00:09:29:04 NEEDS.
00:09:29:04 00:09:30:29 ENORMOUS NUMBER OF PEOPLE FILED
00:09:30:29 00:09:32:26 FOR UNEMPLOYMENT THIS WEEK.
00:09:32:26 00:09:35:01 WON'T KNOW THE NUMBER UNTIL NEXT
00:09:35:01 00:09:35:13 WEEK.
00:09:35:13 00:09:40:16 NEED FOR ENHANCED UNEMPLOYMENT
00:09:40:16 00:09:41:05 BENEFITS TO SUPPORT THE ECONOMY
00:09:41:05 00:09:42:01 WITH PEOPLE OUT OF WORK.
00:09:42:01 00:09:43:19 AND SUPPORT FOR OTHER PEOPLE.
00:09:43:19 00:09:45:23 PEOPLE NEEDING MEDICAL CARE ARE
00:09:45:23 00:09:48:10 ABLE TO GET IT AND DON'T HAVE TO
00:09:48:10 00:09:49:22 WORRY WHETHER THEY CAN PAY FOR
00:09:49:22 00:09:50:05 IT.
00:09:50:05 00:09:51:08 DON'T WANT PEOPLE STAYING AWAY
00:09:51:08 00:09:54:11 FROM HOSPITAL BECAUSE AFRAID OF
00:09:54:11 00:09:55:24 A BILL IF THEY SEEK TREATMENT
00:09:55:24 00:09:56:26 FOR CORONAVIRUS.
00:09:56:26 00:09:58:23 AND THEN PHYSICAL MEASURES TO
00:09:58:23 00:10:01:10 SUPPORT THE BROAD ECONOMY,
00:10:01:10 00:10:03:29 MOSTLY FOR SUPPORT COMING OUT OF
00:10:03:29 00:10:04:08 THE CRISIS.
00:10:04:08 00:10:05:07 PEOPLE IN WASHINGTON TALKING
00:10:05:07 00:10:06:13 ABOUT SENDING CHECKS TO
00:10:06:13 00:10:10:07 INDIVIDUALS, GOING OVER HOW BIG.
00:10:10:07 00:10:11:25 MITT ROMNEY SAID $1,000 FOR
00:10:11:25 00:10:13:08 EVERY ADULT.
00:10:13:08 00:10:15:06 SOME DEMOCRATS SAID BIGGER THAN
00:10:15:06 00:10:16:22 THAT, SOME WANT RESTRICTIONS ON
00:10:16:22 00:10:19:09 WHO GETS THE CHECKS.
00:10:19:09 00:10:21:10 THAT WILL PROTECT BALANCE SHEETS
00:10:21:10 00:10:23:13 TO SOME EXTENT, PEOPLE WILL GO
00:10:23:13 00:10:25:19 OUT TO SHOP AFTER THIS IS OVER,
00:10:25:19 00:10:27:24 LESS FOCUSED ON COVERING THE
00:10:27:24 00:10:29:14 BILLS THEY HAD NOT WORKING AND
00:10:29:14 00:10:30:21 MORE ABLE TO SPEND.
00:10:30:21 00:10:34:04 BUT NUMBER LIKE $1,000 STARTS TO
00:10:34:04 00:10:35:04 LOOK SMALL COMPARED TO EXPENSES
00:10:35:04 00:10:36:23 IF YOU'RE PUT OUT OF WORK.
00:10:36:23 00:10:38:23 TALKING ABOUT LARGER AND LARGER
00:10:38:23 00:10:40:04 NUMBERS BECAUSE THE NEED IS
00:10:40:04 00:10:42:06 BECOMING CLEARER.
00:10:42:06 00:10:45:24 >> HOW ABOUT COMPARING THIS TO
00:10:45:24 00:10:46:09 2008/2009.
00:10:46:09 00:10:49:14 IT'S HARD TO MAKE PRECISE
00:10:49:14 00:10:49:29 COMPARISON.
00:10:49:29 00:10:53:23 MORE BANKING CRISIS THAN THIS.
00:10:53:23 00:10:54:24 RESENTMENT AT THE TIME FOR
00:10:54:24 00:10:56:27 BAILOUT OF THE BANKING
00:10:56:27 00:10:57:23 INSTITUTIONS AND THAT'S
00:10:57:23 00:10:59:18 CONTINUED IN YEARS SINCE.
00:10:59:18 00:11:00:23 THIS IS DIFFERENT.
00:11:00:23 00:11:02:06 HOW WOULD YOU COMPARE THE TWO OF
00:11:02:06 00:11:04:14 THEM IN TERMS OF IMPACT AND
00:11:04:14 00:11:05:17 MOVING FORWARD?
00:11:05:17 00:11:07:21 >> I MEAN I THINK TO YOUR POINT,
00:11:07:21 00:11:09:17 THE KEY DIFFERENCE IS THAT WAS A
00:11:09:17 00:11:10:27 CRISIS THAT STARTED IN THE
00:11:10:27 00:11:11:24 FINANCIAL SYSTEM.
00:11:11:24 00:11:13:15 THIS DID NOT.
00:11:13:15 00:11:17:09 THIS IS A REAL WORLD CRISIS
00:11:17:09 00:11:18:18 CAUSED BY VIRUS BUT MAY HAVE
00:11:18:18 00:11:20:13 EFFECT IN THE FINANCIAL SYSTEM.
00:11:20:13 00:11:24:05 SO IMPORTANT TO PROTECT IT, BUT
00:11:24:05 00:11:25:13 ONE THING MAY MAKE IT
00:11:25:13 00:11:28:25 POLITICALLY EASIER THAN 2008,
00:11:28:25 00:11:31:17 THIS ISN'T ALL BANKERS' FAULT.
00:11:31:17 00:11:33:14 DON'T HAVE FEELING THEY CREATED
00:11:33:14 00:11:35:20 MESS AND NOW WE THROW MONEY AT
00:11:35:20 00:11:35:26 THEM.
00:11:35:26 00:11:38:03 BANKS IN UNITED STATES ARE IN
00:11:38:03 00:11:39:02 BETTER FINANCIAL POSITION THAN
00:11:39:02 00:11:41:14 THEY WERE GOING INTO 2008
00:11:41:14 00:11:42:09 CRISIS.
00:11:42:09 00:11:43:15 LEFT LEVERAGED, THEY HAVE MORE
00:11:43:15 00:11:47:07 ROOM TO TAKE LOSSES ON LOANS IF
00:11:47:07 00:11:48:14 BORROWERS CAN'T REPAY.
00:11:48:14 00:11:49:27 THAT'S UPSIDE.
00:11:49:27 00:11:52:09 FLIP SIDE OF IT, SIMILAR TO
00:11:52:09 00:11:53:22 2008, WE'RE GOING TO HAVE TO
00:11:53:22 00:11:56:04 BAIL OUT A LOT OF BUSINESSES IN
00:11:56:04 00:11:57:06 ONE WAY OR ANOTHER.
00:11:57:06 00:12:00:08 THERE ARE A LOT OF QUESTIONS HOW
00:12:00:08 00:12:01:23 TO STRUCTURE THE BAILOUTS.
00:12:01:23 00:12:04:01 KEY OBJECTIVE IS KEEP BUSINESSES
00:12:04:01 00:12:08:00 OPERATING TO THE EXTENT IT'S
00:12:08:00 00:12:09:20 APPROPRIATE TO BE OPERATING AND
00:12:09:20 00:12:10:23 KEEP PEOPLE GETTING PAID MAYBE
00:12:10:23 00:12:13:05 EVEN IF NOT OPERATING SO THE
00:12:13:05 00:12:14:26 ECONOMY CAN GO BACK TO NORMAL
00:12:14:26 00:12:16:05 QUICKLY AS POSSIBLE.
00:12:16:05 00:12:18:26 YOU'LL HAVE ARGUMENTS WHO TAKES
00:12:18:26 00:12:20:11 THE LOSSES THERE.
00:12:20:11 00:12:21:24 AIRLINE EMPLOYEES KEEP GETTING
00:12:21:24 00:12:24:24 PAID, CAN RESULT IN STOCKS IN
00:12:24:24 00:12:28:22 AIRLINES GOING TO ZERO, THE
00:12:28:22 00:12:31:23 EQUITY GETTING OUT.
00:12:31:23 00:12:34:00 AIRLINES ARE PUSHING FOR
00:12:34:00 00:12:35:14 SOLUTIONS THAT WOULDN'T HAPPEN,
00:12:35:14 00:12:37:09 HAVE A GRANT AND MAYBE WOULDN'T
00:12:37:09 00:12:38:09 HAVE TO GO BANKRUPT.
00:12:38:09 00:12:40:11 COULD BE A LOT OF HARD FEELINGS
00:12:40:11 00:12:43:22 SIMILAR TO 2008, WE HIT THIS
00:12:43:22 00:12:45:07 CRISIS AND GOVERNMENT BAILED OUT
00:12:45:07 00:12:47:15 A BUNCH OF RICH PEOPLE.
00:12:47:15 00:12:48:20 IT'S IMPORTANT TO BE MINDFUL OF
00:12:48:20 00:12:49:25 THAT CONSEQUENCE.
00:12:49:25 00:12:51:23 ON THE OTHER HAND I WORRY -- WE
00:12:51:23 00:12:55:17 NEED ENORMOUS RESPONSE HERE TO
00:12:55:17 00:12:59:17 THE EXTENT THE POLICY MAKERS ARE
00:12:59:17 00:13:02:26 BOGGED DOWN IN ARGUMENTS WHAT IS
00:13:02:26 00:13:06:22 FAIR AND WHO SHOULDN'T BE
00:13:06:22 00:13:07:05 AFFECTED.
00:13:07:05 00:13:09:14 YOU NEED PEOPLE TO HAVE TRUST IN
00:13:09:14 00:13:11:13 THE GOVERNMENT BUT ALSO ACT WITH
00:13:11:13 00:13:13:16 SPEED AND LARGE RESPONSE.
00:13:13:16 00:13:15:03 TWO IMPULSES MAY BE IN TENSION
00:13:15:03 00:13:16:02 WITH EACH OTHER.
00:13:16:02 00:13:19:16 >> IT'S COMPLICATED, CONFUSING.
00:13:19:16 00:13:21:12 VERTIGO INDUCING, BUT YOU'VE
00:13:21:12 00:13:23:03 BEEN VERY HELPFUL GIVING US
00:13:23:03 00:13:24:10 OPPORTUNITY TO UNDERSTAND ALL
00:13:24:10 00:13:24:21 THIS.
00:13:24:21 00:13:26:27 HOPE WE GET YOU BACK ON SOON TO
00:13:26:27 00:13:29:22 TALK MORE IN DETAIL ABOUT SOME
00:13:29:22 00:13:30:07 OF THIS.
00:13:30:07 00:13:31:04 THANKS FOR JOINING US.
00:13:31:04 00:13:32:16 >> THANKS FOR HAVING ME.
00:13:32:16 00:13:32:16 >> TAKE CARE NOW.

Funders

MetroFocus is made possible by James and Merryl Tisch, Sue and Edgar Wachenheim III, the Sylvia A. and Simon B. Poyta Programming Endowment to Fight Anti-Semitism, Bernard and Irene Schwartz, Rosalind P. Walter, Barbara Hope Zuckerberg, Jody and John Arnhold, the Cheryl and Philip Milstein Family, Janet Prindle Seidler, Judy and Josh Weston and the Dr. Robert C. and Tina Sohn Foundation.

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