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tv   The Exchange  CNBC  April 19, 2021 1:00pm-2:00pm EDT

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start putting your money where your mouth is. steve. >> micron. the stock should be at 100, not at 85. i would add to it here >> quickly, joe. >> jms smucker long >> thank you for watching. hig, everybody. bitcoin struggling to rebound from its worst day since february we'll talk about why and where the selling is coming from one that might fade as stimulus money dries up former nec director says i flags is here to stay and it could send rates much hi higher. facebook may be looking to launch its own audio products. this is sort of social audio we have the details and start
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with the market. dom is here with the numbers >> can i tell you how good it is to have you back, socially distant or otherwise the studio let's talk about the market. we're in the red today we have pulled back from record highs. the nasdaq technology is moving things to downside really the under performer s&p was down 5 technology is down energy, the huge outperformer over the last month is severely underperformed the reversal that we have seen over the last six months
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those big price swings we saw this weekend is downside three paeps that have bit county as part of their plans sheet. they own the focuses watch the witcoin. crypto is being seen by some as a risk age for the whole market. leets talk about these sell offs
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when a crypto is up as much as it has been, 10% sell off is pretty garden variety. >> it's been a fun time. certainly what we saw last week was a classic momentum tradeon saturday night we saw a massive deleveraging over 7 billions in options liquidated in a 20-minute period that had an impact sunday we came right back with 80 million of market volume in the bitcoin space. those dips are getting right back up. >> as you know better than anyone, only in crypto do you
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get the 20-minute intense sell offs that erased 20 billion in market cap are there people who say awesome, now i can buy it at 54 but i still wish i had gotten in at 19. >> exactly great to see you great to have you back only in crypto do you see that happen on a saturday night into sunday the market never sleeps. it's open on the weekends. of course, that's what people are saying today a lot of action in the derivative market. that seems to have accelerated some of the losses there you are seeing a bit of a bottom it's stabilizing around 55,000 some might be coming in to see this as a buy in opportunity one of the other data points we saw from another block chain is that some of the wealthier buyers, so called whales are stepping back at the same time as the retail buyers buying smaller amounts, around $600 retail buyers were getting in.
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you saw this shift ahead of coin base a will the of excitement from the retail buyer there >> true. the bitcoin thing makes a lot of sense. we have seen so many institutions getting in over the past three to six months what about doge coin on the one hand you have institutional interests driving up bitcoin and you have this massive interest driving up everything from game stop to dogecoin, you name it. am i describing it correctly or are there more commonalities >> what we saw happen last week was pretty astounding. i think the satcatalyst was the wall street bets community only three coins a day later they reversed that decision because all the crypto folks went crazy in the forum.
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i think part of the response was retail retaliating and tik tok investors made a song about doge to $1. >> we used to joke with my brother if it got do a dollar, he could retire. he was like i got bored and sold it i was like what. this is what stock traders have been dealing with for years. tell us what the next hot coin will be. >> that's so interesting a lot of people know it's a joke they're not looking at this as their next big investment in terms of putting their retirement money there i think there's a lot of interest in getting on the momentum train
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it seems to be anything tied a measu meme it gets back to the robinhood argument of is it wrong to gamify stokt stocks. you have the risk there. you have got to be careful because this has seen a luj run up investingis entertainment, knowing it's a joke. thank you both very much appreciated. we'll pivot with what's going on here let's talk about whether that's true and the pull back we're seeing >> you're back and you can rely on me to get away from the fun and get back to what's serious
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too many stocks higher in a short period of time and often means that doesn't take much to have a give back face. one thing that was getting a lot of attention is # 5% plus of all stocks in the s&p 500 were five their 200-day average. they are above this up trend line usually that's great thing you want a rap rally to be broa. when it gets to this thin air up here, it has in the past coincided with the market talled out or had a correction or gone sideways for a while it's also getting toward full levels maybe arguably some kind of
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extremes and that 2010 example is also relevant in the sense the economic data getting better at such a fast pace and yet the market is kind of said, we know it maybe it had to be coinciding with a period investors have to digest this good news. >> when is the time up on the whole kind of investing is entertainment trend we know it came to a climax when there's no other inteentertainm. we're getting closer to the reopening and that's what supposed to be driving the rest of the market. why is this still getting so much traction? d >> there's a decent case to be made that it peaked a few months ago. it does seem as if there's going
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to be this layer of investing as play or a diversion or social activity for some time to come >> you knew about that >> it's much more similar to what wall street was at the beginning which is very sp speculative and very much like who knows what and give me a tip. >> before business school took all the fun out of it. mike, thank you very much. >> going to take a quick break millions of americans are still without jobs even as thousands of businesses can't find the workers they need. we'll look at why this disconnect and which industries are most under pressure. a deadly new crash involvin tesla is raising fresh questions about auto pilot that story ahead right after this
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we do this, together. bounce forward, with comcast business. m welcome back businesses are in full hiring mode why are so many companies struggling to find workers now we have the details.
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the signs are up in the windows help wanted. they are looking to hire electricians, plumbers, construction workers and nurses and home health aides. housekeepers to servers at the pool the survey shows job openings. unp unemployment hit the lowest level. that's been a real problem for ocean city maryland which needs to hire 12,000 seasonal workers for tourism bids -- businesses a third comes from students who come over seas with visas. the pandemic is still a problem getting them here. others may have child care issues here at home or maybe they even moved into other jobs. >> we have people who have legitimate reasons why they
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can't come back into the employee force they are people who say i think i'll just collect my unemployment because i don't want to work the extra hours and make this amount of money. they would rather be comfortable here >> reporter: they sent a letter to the state department begging people to reinstitute that people receiving unplemployment benefits have to look for work businesses are now also hiking wages. they are offering bonuses for those who stay on the job. they are trying to even lure workers with same day pay. you work, you get paid that very same day kelly, they got to get creative. >> i heard about signing bonuses where you get $1,000 if you stay on for 90 days >> we'll talk about how industries are affected with labor shortages.
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i just mentioned where else are we seeing this problem pretty acute now >> i think it's a mix of two type of industries industries like retail or food services where you have a lot of in-person work those are places where it's harder to find workers because of the ongoing pandemic. you also have other industries like transportation and warehousing where a lot of those labor shortages are occurring before the pandemic and have gotten worse during the pandemic because those industries have seen a huge surge in demand from trends like e-commerce >> what resolves this? >> wages and bonuses are the first thing that come to mind. there's also other tools employers can turn to. if employees are concerned about health and safety then employers
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can offier more flexibility or they can invest more in health and safety standards and make that information available to mare employees to make sure those concerns are slashed >> what could have been done to make this round or version of unemployment benefits more trendily toward the reopening? >> it's difficult to say a lot of the unemployment extensions have been last minute and are not things that can be turned around on a dime. there have been so proposals to turn unplemployment benefits to bonus where workers don't lose out or money if they find a job. that's an option moving forward. at the same time i'm fairly optimistic that once the reopening gets underway and we have a full reopening, then we're going to see a lot more workers flood back into the labor force and sochl these labor shortages might be fairly temporary. >> when do the benefits run out
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now? i'm sure it depends on state to state and case by case but generally speaking is there time frame? >> some of it, yeah, it does depend state by state. i think the longest it can go until it is around labor day >> we're talking about the next couple movnnths that could make the summer problematic there's companies that use workers sort of an out sourcing call center where in one state because of the pandemic workers are realizing they can get tele commute work in another state. these workers don't have to leave their house. they don't have to move. i wonder how we might expect that to play out across the professional financial services space. >> i think one interesting thing
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about this pandemic is it kind of forces both employers and employees to reevaluate their assum assumptions. we shouldn't assume whatever the labor market was like before the pandemic and won't be the same now. i think it's raelg important for employers and employees to kind of reevaluate those assumptions and relearn how local labor markets are functioning. >> i think that some of it is ultimately temporary because workers will come back once the pandemic is closer to being actually over. at the same time wage growth has been a bit stronger during the pandemic than we would expect than a traditional recovery.
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all of this goes to highlight the pandemic is both still going on and it al means the current crisis and the current recession are not a typical one. e everything is colored by the pandemic >> it feels very different daniel, thanks very much coming up, there are a lot of worries about the ten-year yields heading up to 2%. my next guest says we're going to 3%. global consumers are sitting on trillions of dollars ofgerin that means ahead we're back in a moment here on the exchange
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welcome back to the exchange leapt's get a quick check on markets. dow is down 164 points about half a percent now we're off the lows and down about 220. we have been largely under water. 10 out of the 11 sectors are in the red. consumer discretionary, technology and materials are your biggest laggards. apparel stocks are pulling back today. that seems like tapestry, ralph lauren not major moves but tapestry down about 3%. this is after a strong start to the year l brands is up 78% since jan 1
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another bellwether for the market if down, nearly 3% that's led by declines in micron, lam research and cadence. going the other way are shares of harley davidson, they had a big earnings beat. they are sharply higher by about 11% now. some names that move on company move offer the best opportunity for investors. that's according to goldman s sachs. let's get to rahel for our cnpc news update. >> welcome back. good to have you in the building treasure redepay department is announcing a focus on climate policy florida is cracking down on violent protests this morning the governor signed the legislation nickname the
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anti-riot bill new rules raise penalties and make it harder to cut funding for law enforcement. new york governor raising capacity limits for museums, movie theaters and large indoor arenas higher caps go into effect next monday you can see how reopenings are happening across the country despite new increases in some areas tonight. for the first time in 18 years, the cincinnati bengals are getting a new look the home black jerseys have three stripe and alternate white and orange jerseys the tiger striped helmet remain. i think the consensus is newer uniforms are cleaner, more streamline, more simple sdplp what's the big deal. the nba has a new uniform every game >> social secuit's been do long. i think people are excited to see something different.
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u.s. households are sitting on more than two trillion dollars and looks like consumers are getting more optimistic than ever if people spend even a third, that activity would boost global out put over 2 percentage points this year and next year. one caveat, the money has been largely accumulated by wealthier households this could mute the scale of future spending. coming up, it's game on for game stop. will a spac work for wework? it's all ahead in rapid fire we show the chart and tell the story. today's chart is slightly higher following beat on the top and bottom lines with march volumes
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back to 2019 levels but the company kept guidance unchanged and ceo says they're not out of the woods just yet >> this week marked a new global l high we're seeing other countries go back into lockdown this factor of the degree of lockdown in the rest of the year is a very telling factor as we adapt business and we'll either help us or hinder us as we go into the downhill. one can't draw a straight line without taking this into account. this is wealth. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living.
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welcome back let's catch you up on a couple of stories that should be on your radar here to break down the headlines, molly is the host and senior editor of marketplace tech we have some news this hour. shares of game stop are surging today after ceo george sherman announced he will step down july 3 31st or sooner if his successor is found gamestop is still off the record
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highs. still it's up about 6% today it's up nine fold year to date the ceo leaving. what happens now >> this is the next step in their transformation into this e-commerce kind of online only focus company that ryan cohen, the founder of chewy.com is trying to transform themselves into he's a board member but he's opinion tasked with the strategic nishtsives that could command a valuation we're seeing now. the people who have made this a meme stock is maybe they are committing more to it. roaring kitty. he exercised them and took a bigger stake in the company.
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this is a long term turn around trade. >> what is most important for investors to ponder as they consider the changes they are making >> what i find fascinating is there's an argument to be made that roaring kitty is running this company right now he is driving there bus. you're seeing all of this executive turn over in the wake of a company that has failed to capitalize on winning the lottery. if he's driving them toward a strategy that might be successful in the long term, i find that to be a fascinating power place but also a really interesting development, like you said >> julia, final word on this i think it's really interesting that they did see 175% growth and e-commerce sales in the most recent quarter it's still only accounts for about a third of sales they have a lot more room to go there. i think it's all about liarihira
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ceo with real expertise. >> who would be a good ceo candidate? i saw some people have floated john ledger and others anyone to you come to mind as having the right personality to handle this assignment >> i mean, you do have to put yourself into a power struggle with roaring kitty it's going to have to be a personality. there's companies that successfully made that transition i'd be looking to walmart, to target i'd be looking to somebody who really did >> walmart molly, walmart gamestop >> i don't know. walmart's come out of nowhere. you can't discount them. >> that's true >> stranger things have happened >> i still can't get over roaring kitty's link back. anyone of my age would know what we're talking about. somehow keith gill shows up everywhere a suite of new products.
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in a conversation going on right now in discord, ceo mark is saying now reportedly valued at 4 billion dollar after its latest fundings. >> headlines are coming across right now. we have seen this company copy well in the case of instagram stories and not as well. what do you think is important here >> what's really interesting and i have to say this call happening right now, this interview was happening. i was listen to it moments ago and what mark is saying is they want their strength in all these different tools whether it's groups or reels or whether it's audio, video calling they see audio as a first class medium reels, they want to do that but for audio. they want to deliver you a bunch
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of them. they will have a pod cast sharing tool showing they want to be place where you can find and identify podcast or share with your friends. live rooms just like clubhouse and what we're listening to right now on discord and offering more tools for the creator economy. get creators to spend time on their platforms and share on facebook platforms as you look to future, it's a lot easier to create audio content and a lot easier to on e consume it when you're multi-tasking. >> dom, i haven't found in clubhouse streams i found interesting. we all know about these live chat apps on throughout the workday. they say why couldn't you have a live, let's call it conference call and audio room amongst your employees that captures that what are we all doing mr. the news room?
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i'm in the looking at you. i can understand the power of harnessing some of that. >> that's what all these tools are meant to do. i'm talking about big name companies with their teams pruk ar slack with their workplace product. all these thinks are a way to get people to collaborate and listen better. this interesting part about the reason why this story resonated is i'm in the sure and it struck this cord with me, i'm not sure how much of the success of company like clubhouse is due to this anti-establishment feel that a lot of users have facebook is the establishment within big technology. that's the reason why so many people are gravitating away fro platforms like that. what they did with instagram was almost another errera. this could be a big deal but we could still shout to each other right now. i'm not sure exactly what it does if you kind of put it in a platform in social audio >> molly, what would you say to that >> i think everybody is looking
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for the next sort of version of engage m and what that means and social audio is really popular now. small gripes like to do it my frit will transition into on demand con tent and that will have the same problems that all on demand content has which is discovery and the fact that not everybody is equally talented. >> let's talk about wework they are expecting acquisition group. that merger would take place later the year according to its latest investor pitch, they prevent a massive growth opportunity with more than 800 locations but there's a
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catch. regulators have catched the profit and growth measuring benchmarks ahead of its failed ipo. the latest figures echo some of the same projeprotections. is there important new information or a reminder this may be the old dog and new clothing, so to speak. >> i mean, i have to be honest i wouldn't trust wework at this point if they told me the sky was blue yet alone their business projections i can see a universe where shared office space is appealing after the pandemic if company sells corporate headquarter and workers have moved away from hubs or they want to split time between home and a place that's less distracting there's a universe where some projections could make sense but a company that's already had so much inflation of its own goals and sort of trying to do the same thing but with less scrutiny, i think you have to have an even higher bar of skepticism than you would have
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which is already high. >> julia, what do you think is their best pitch to the investing public right now as we think about the pandemic will have receded you can understand the attractiveness of that on and off work space >> that's whether people will want to get out of their houses. i think there's an assumption it will be more hybrid work hybrid meaning some time many the office, some time not in the office and maybe some people will have that time not in the office be at home and if companies are giving up the big headquarters, will they be durndurn i -- turning to wework where employees can meet up without having to go into a big corporate office we're talking a lot about the dispersion of employees across the country away from big corporate hubs but we'll see if that last a year from now. >> absolutely. we want to mention the peleton does anybody have this treadmill
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in show of hands. they are pushing back that's urging people with pets or children at home to not stop using the bicycle but the treadmill. 40% of children and pets being injured by them. an accident resulted in the death of child the ceo said the treadmill should not be used around children or pets but the company has no plans to recall them. the shares more than quadrupled but down about 30% this year is this treadmill nor unique to peleton or visible with peleton. >> it's probably neither this is a se cenario where products are not being used the right way. peleton pushing back nobody is taking a stand that this needs to happen the consumer product safety commission is kind of working reportedly with peleton and crafting the language around warning customers about it
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you mention that 30 some percent drop from the highs we saw in a record fashion because of the pandemic driven demand for the products i looked at two analyst notes this morning both of which said any kind of dip in peleton is a dip worth buying and nothing with this tread plus product kind of situation acffects the long term demand or growth trajectory. yes the stock is going lower on this jpmorgan still calls it a best idea >> it's a horrific story and a terrifying situation is this a question of consumers making mistakes in terms of the way they are allowing their children or pets to be exposed it's a very complicated
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situation. does this mean that people will always skip the gym and stay at home and spend the monthly fee that peleton charges or people going to be eager to get back to the gym and be less interested in continuing to buy these bikes and treads >> absolutely. i'm kind of skeptical. we'll see. thank you for joining me today former nec director larry lindsay joins me what has him so concerned about stocks and why there could be another round of stimulus checks next year. we're back in a couple
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welcome back stocks have soared to record
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levels after the fed said inflation is temporary and will do everything to support the economy, but what if the fed is wrong and what if higher prices are here to stay joining me is larry lindsay. he's former governor of the federal reserve board. it's great to see you again. you've been very consistent. >> thank you welcome back >> thank you on this message about how you say you don't think these inflation pressures will prove passing. can you explain why. this ties so many different variables together you don't think people are coming back in from the labor force and so much more with the producer being sticky. why won't this go away in 6 or 12 or 18 months time >> we're in a situation where we're likely to have continued fiscal stimulus. it's quite unlikely that in an election year the congress is going to let their constituents have less money next year than they had in 2021 i think the demand side of the
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economy is going to continue quite strong our constraint is on the supply side of the economy. we're hearing about bottlenecks everywhere in the supply chain going all the way back to the very start of the supply chain the biggest problem every employer has is finding qualified workers. stories out that restaurants that are now able to reopen, they can't because they don't have the labor supply. the economy is supply cons const constrained. if you combine rapid demand growth and limited supply growth, the outcome is inflation. >> in other words, what you're saying is we have seen a permanent change on supply side of the economy why is it permanent? a lot of this goes back to how big the labor force is the drop out of labor force we have seen the shut downs the people who may not come back would have a multi-generational
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impact that widens inequality. it's the last thing anybody wants to see happen. is there still time to fix that and why dwroon't you think it's going to work? >> well, two things have happened the first is that frankly, a lot of jobs become a lot less attractive and likely to stay that way interacting with lots and lots of strangers every day is certainly riskier than it's been and even when we're all vaccinated the lingering acffecs of what's happened will continue we're still going to have spikes and variants of the virus, mutations come along i think there's a change in the attitude toward work the stimulus checks, the higher unemployment, while i understand the motivation for them, if they are continued d on a long term basis will make the problem
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worse. people who know they have another source of income aren't going to rush back into their old jobs >> let's talk about beyond yields where a lot of our viewers are wondering which way they should bet. you should say even if it goes to 2 or 3%, maybe that's no disaster except for certain parts of the market. how much risk is there in stocks and what level is realistic for us to reach on bonds. we'll have to find out the question is will that ever stop if you look at the bond yield and you say the economy is likely to hit full employment say in 15 month, 18 months we're growing rapidly. inflation is creeping up
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that's inescapable fact. the bond yield by year end under those circumstances would have to be at least 3% to be anything like what normal should be and given what's happening in the economy, you've got to have a small positive bond yield once you hit full employment. we're now negative we're likely to have some acceleration of inflation and we're going to have to get that real yield up as well. it's very hard to imagine that 3% is going to be the stopping point for the 10-year bond >> the final place, i'm curious what you would say to viewers who are wondering what will happen with the budget deficit and debt situation i think we know there's no magic level that the debt reaches and becomes a problem but we al don't know at what point it will become a problem or what's going
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to happen if it does these things are baked in and spending is so hard to decrease and obviously even efforts to increase revenues are also facing kind of a tough slog. what do we watch for do we wait for the problem to present itself just wait for thm to present itself? that's an argument that we have always pulled back too quickly. >> what we are likely to do, not should do, wait until it's too late and slam on the brakes. it's not any time soon but later this decade. let's do some simple math. we are going to have a 19% of gdp budget deficit in year we will have to finance housing to the tune of another 4% of gdp. total net private savings in america is roughly 7% to 8% of
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gdp. that's a huge gap between 23 and 8. the kindness of strangers, ie foreigners, can't be relied upon to cover that. those bonds are going to have to be largely purchased by the fed and provide the fuel certainly to validate inflation and inflation expectations and this f this were a one-year phenomenon, okay, but again, i ashoe you the incumbents will not take the risk of seeing their constituents worse off next year than this year. >> great point. >> an economy speed limit. 2% of gdp a year, that's it. >> wow that's why people say prepare for the apocalypse i say how do you joke about these things larry, appreciate it very much
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still ahead, shares of tesla lower after a deadly crash in texas. what it means for the stock right after this cell phone repair. did you know liberty mutual customizes your car insurance so you only pay for what you need? just get a quote at libertymutual.com. really? i'll check that out. oh yeah. i think i might get a quote. not again! aah, come on rice. do your thing. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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welcome back authorities in texas investigating a tesla crash that left two men dead. police shay they don't believe that anybody in the driver's seat in the crash. that's reigniting the discussion of the tesla language. phil >> keep in mind as you take a look at the crash scene a fiery crash over the weekend the two occupants of the vehicle, what happened here, two people killed, one found in the passenger seat and within in the backseat and police at the scene say they do not believe anyone in the driver's seat the big question is was auto pilot engaged. the national highway transportation safely investigation says they have launched a special crash investigation team to investigate the crash. we are actively engaged with
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local law enforcement and tesla to learn more about the details of the crash and will take appropriate steps when we have more information just to refresh the course on tesla's autopilot technology, it is not full self driving technology regardless of what you hear from people, regardless how positive elon musk may be about the fact you may not have to drive in the future you have to be engaged and tesla tells all owners of all vehiclesing that the case. but looking at shares of tesla keep in mind that as the company is developing new versions of autopilot they have been testing the beta versions with real drivers, people who have teslas and as they do that the criticism is from some people including the head of ntsb that you shouldn't have regular citizens testing out beta versions of the autopilot
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software but only crash drivers until you can release the software why this is a story to see play out over the weeks and months to come, whether or not nhtsa does something because they have investigated more than two dozen. >> investors are excited about the potential for full self-driving. >> sure. >> represents a risk around that story. thank you. we'll continue to follow it. >> you bet it. coming up on "power lunch," investors will injous to talk about the economy and his new plays and i'll join letyr matheson for "power lunch" right after this get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.
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welcome, everybody, to "power lunch." i'm about to say some words that make me very map pi, with kelly evans i'm tyler matheson watching the market sliding right now but is there a reason to be really worried we'll talk to mario gab elli about that and the economy and what he is buying right now, an interesting list you won't wan

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