On the Trey Ware Show, Karl Eggerss discussed how Congress is holding the country hostage. Karl is seeing some positive signs out of financial markets, but he says we have to get fiscal stimulus package passed.
Trey Ware: The latest information includes what’s going on with the stock market, what’s going on with the economy. We’ve got to go to The Stevens Roofing Newsmaker Hotline from creatingricherlives.com. Karl Eggerss joins us every Monday at this time, and more frequently during a crisis like this. Karl, we of course have the information that the stock market went down over 17%, Dow did over 17% last week. Over a 4,000-point drop as of last week. Overnight futures not looking good. Democrats killed the plan that had been voted on yesterday in order to backstop the economy with some cash in a hurry, backstop businesses and small businesses with some cash in a hurry and send about $3,000 on average to families of four. Democrats killed that plan late last night. As a result of that, what do you expect the stock market to do when it opens up this morning?
Karl Eggerss: There’s optimism that that will get done. I did see some encouraging things late Friday, meaning in all of the stuff, the Treasury, Steven Mnuchin and the Federal Reserve are doing to unfreeze the credit markets. I mean, right now when people need access to capital to draw on their lines of credit, we need to make sure that companies can do that. We weren’t seeing that early in the week. We did see some of that on Friday. That’s encouraging, but look, at the end of the day, these Congressman and women need to understand that they’re still getting their paychecks and the restaurant owner and people that are being forced to stay home are not.
Karl Eggerss: I know the issue of, “Hey, we can’t bail people out without any conditions because that reeks of ’08”, but I think what’s going to happen, and you heard Larry Kudlow talk about it last week, the U.S. government… the taxpayers are going to end up with a portfolio of stock positions in some of the best companies in America. That’s going to happen I think, and if that happens, remember with GM it was a good return on investment. As opposed to bailouts, they take investments in these companies. Instead of just giving them money, they’re investing in them, and then when things turn around down the road, they can sell those shares and it’s good for the taxpayers. That’s very different than a “bailout.” By the way, President Trump mentioned it. If these big companies can’t pay their bills and they go bankrupt, guess what? All of those employees can’t pay their bills and go without a job as well.
Trey Ware: This is a point to make, Karl. We need to stop right there because this point is important. People say, and I heard Ben Crenshaw on Twitter saying this. People say, “Well, we don’t want”, and this was the Democrats’ big argument. “Well, we don’t want to give any money to the big companies because the big companies don’t deserve it. They don’t deserve any money. We don’t want to give them a chance to have any more money.” They’ve got all of the money that they need is what the Democrats were arguing about yesterday. Well, let’s just think about that for a second, and all I’m saying is that people in this country need to use a little common sense and think beyond their nose for just a second.
Trey Ware: If Toyota, I’m just going to use them as an example. They seem to be perfectly healthy and everything is going to be perfectly fine. I just need to use an example, so I’m choosing Toyota. If Toyota were in bad shape because of this crisis, not because of anything they did and not because people in 2008 were buying up useless paper, but in this case because of this, because people are not buying vehicles right now, if Toyota got into bad shape and they needed help from the government, the government should provide that help. How many people here in San Antonio does Toyota employ? Thousands, and then, “Well, okay, so Toyota can afford to take care of those people.” Really? Can they afford to take care of the guy who makes the dashboard? How about the guy who makes the odometer that goes in the dashboard? How about the guy that makes the little light that goes in the dashboard to light the dashboard up?
Trey Ware: It’s all connected. We’re all connected. We’re all in this together and this is the absolute wrong time for them to be playing politics with this. Yes, make sure that Toyota stays alive, make sure the little pizza joint down on the corner stays alive. That’s what we need to do right now. It’s what we need to be focused on right now, not politics.
Karl Eggerss: Well, you’re absolutely right, and the speed, we have to do this quickly because people are laying employees off and if they know they have money coming in to pay the employees, they will not lay them off. That is happening right now. They have no choice, so the speed of this getting done is critical.
Trey Ware: Well, I’ll give you an example. I’ve got a friend in the floral business, all right. He had to go in Saturday and do all of the termination paperwork for a bunch of employees because people aren’t buying… the last thing you’re going to buy right now are flowers. What are you going to buy flowers for right now? He had to lay a bunch of people off on Friday and Saturday and had to go in on Saturday and do all of the termination paperwork. That’s how we’re all connected, and if you throw these guys a lifeline and say that, “Yeah, keep the door open and keep things going”, then at least they’ll be able to keep people employed and we can keep some semblance of an economy. Otherwise, you just trash the whole economy and it’s over with.
Karl Eggerss: Well, that’s right, and that’s what’s different about… People say, “Boy, this is like a shock like 9/11.” No it’s not, 9/11 [crosstalk 00:05:20]-
Trey Ware: Well-
Karl Eggerss: I wasn’t directly impacted. Yes, I couldn’t fly for a couple of weeks, the stock market was closed for a few days, but this is something we’re all impacted by. Everybody’s impacted by this and the speed of getting this done is critical. Again, they’re getting paychecks. They’re taking their sweet time and I think there’s a lot of positive things happening right now, but at the end of the day, people are going to try to cram their own agenda into this bill and that’s the problem.
Trey Ware: Yeah, that’s right. Karl, thank you, As always, Karl Eggerss with us every Monday at this time, or more frequently if necessary, creatingricherlives.com. It’s creatingricherlives.com, and I would be… Thank you, Karl, have a great day. I would be in favor of saying to the members of Congress, “You’re not going to get a paycheck right now.” I would be in favor of that.