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>> President Trump:
>> President Trump:
SAUDI ARABIA IS CUTTING BACK,
SAUDI ARABIA IS CUTTING BACK,
MEXICO IS CUTTING BACK.
MEXICO IS CUTTING BACK.
THE PROBLEM IS NOBODY IS DRIVING
THE PROBLEM IS NOBODY IS DRIVING
A CAR ANYWHERE IN THE WORLD
A CAR ANYWHERE IN THE WORLD
ESSENTIALLY.
ESSENTIALLY.
>> Sandra: THAT WAS
>> Sandra: THAT WAS
PRESIDENT TRUMP ON THE DEMAND
PRESIDENT TRUMP ON THE DEMAND
FOR OIL PLUMMETING DURING THIS
FOR OIL PLUMMETING DURING THIS
PANDEMIC.
PANDEMIC.
HIS REMARKS COMING AFTER OIL
HIS REMARKS COMING AFTER OIL
PRICES FELL, ULTIMATELY TURNING
PRICES FELL, ULTIMATELY TURNING
NEGATIVE FOR THE FIRST TIME IN
NEGATIVE FOR THE FIRST TIME IN
OUR HISTORY.
OUR HISTORY.
JOINING ME NOW IS KEVIN HASSETT,
JOINING ME NOW IS KEVIN HASSETT,
SENIOR ADVISOR TO
SENIOR ADVISOR TO
PRESIDENT TRUMP.
PRESIDENT TRUMP.
GOOD MORNING AND WELCOME.
GOOD MORNING AND WELCOME.
DID YOU EVER SEE THE DAY WHERE
DID YOU EVER SEE THE DAY WHERE
WE WOULD SEE NEGATIVE OIL PRICES
WE WOULD SEE NEGATIVE OIL PRICES
PRICES?
PRICES?
>> YOU KNOW YOU ASK A DIFFICULT
>> YOU KNOW YOU ASK A DIFFICULT
QUESTION BUT THE ANSWER IS
QUESTION BUT THE ANSWER IS
SURPRISINGLY, YES.
SURPRISINGLY, YES.
BECAUSE OF THE WAY THESE MARKETS
BECAUSE OF THE WAY THESE MARKETS
WORK, EVERY NOW AND THEN PEOPLE
WORK, EVERY NOW AND THEN PEOPLE
HAVE TO TAKE DELIVERY BECAUSE
HAVE TO TAKE DELIVERY BECAUSE
THAT’S WHEN IT’S SCHEDULED TO
THAT’S WHEN IT’S SCHEDULED TO
HAPPEN AND THEY RUN OUT OF
HAPPEN AND THEY RUN OUT OF
STORAGE.
STORAGE.
ECONOMISTS HAVE KNOWN FOR A LONG
ECONOMISTS HAVE KNOWN FOR A LONG
TIME THAT THIS KIND OF THING
TIME THAT THIS KIND OF THING
COULD HAPPEN.
COULD HAPPEN.
YESTERDAY MORNING AFTER I WAS ON
YESTERDAY MORNING AFTER I WAS ON
MARIA’S SHOW I WENT BACK TO TALK
MARIA’S SHOW I WENT BACK TO TALK
TO SOME OF MY ASSISTANCE AND WE
TO SOME OF MY ASSISTANCE AND WE
SAID THEY COULD GO NEGATIVE
SAID THEY COULD GO NEGATIVE
TODAY AND IT DID.
TODAY AND IT DID.
BECAUSE AGAIN IF YOU TAKE
BECAUSE AGAIN IF YOU TAKE
DELIVERY AND YOU DON’T HAVE A
DELIVERY AND YOU DON’T HAVE A
PLACE TO PUT IT THEN WHAT DO YOU
PLACE TO PUT IT THEN WHAT DO YOU
DO?
DO?
YOU CAN’T DUMP IT ON THE GROUND
YOU CAN’T DUMP IT ON THE GROUND
OR LIGHT IT ON FIRE OR SOMETHING
OR LIGHT IT ON FIRE OR SOMETHING
SOMETHING.
SOMETHING.
>> Sandra: BUT KEVIN AS AN
>> Sandra: BUT KEVIN AS AN
ECONOMIST AND SOMEONE ADVISING
ECONOMIST AND SOMEONE ADVISING
THE PRESIDENT, WHAT DOES THIS
THE PRESIDENT, WHAT DOES THIS
TELL US ABOUT THIS CURRENT STATE
TELL US ABOUT THIS CURRENT STATE
OF OUR ECONOMY THAT WE WOULD SEE
OF OUR ECONOMY THAT WE WOULD SEE
OIL PRICES NOT ONLY FALL AS MUCH
OIL PRICES NOT ONLY FALL AS MUCH
AS THEY HAVE BUT ULTIMATELY GO
AS THEY HAVE BUT ULTIMATELY GO
NEGATIVE?
NEGATIVE?
>> THIS IS A VERY, VERY SHORT
>> THIS IS A VERY, VERY SHORT
RUN DISRUPTION, AND THE
RUN DISRUPTION, AND THE
PRESIDENT SAID IT EXACTLY RIGHT.
PRESIDENT SAID IT EXACTLY RIGHT.
WE STOPPED IN ORDER TO CONTROL
WE STOPPED IN ORDER TO CONTROL
THE VIRUS AND WE’VE NEVER REALLY
THE VIRUS AND WE’VE NEVER REALLY
STOPPED THE ECONOMY BEFORE.
STOPPED THE ECONOMY BEFORE.
SO STRANGE THINGS WILL HAPPEN
SO STRANGE THINGS WILL HAPPEN
WHILE PEOPLE STAY AT HOME AND
WHILE PEOPLE STAY AT HOME AND
DON’T DRIVE.
DON’T DRIVE.
WHAT HAPPENS IS, THE REFINERY A
WHAT HAPPENS IS, THE REFINERY A
MONTH AGO CALLED THE SAUDIS AND
MONTH AGO CALLED THE SAUDIS AND
SAID CAN YOU FLOAT SOME OIL OVER
SAID CAN YOU FLOAT SOME OIL OVER
TO US.
TO US.
THE OIL STARTS OFF AND IS
THE OIL STARTS OFF AND IS
SHIPPING ACROSS THE OCEAN AND
SHIPPING ACROSS THE OCEAN AND
ALL OF A SUDDEN WE REAP TURN THE
ALL OF A SUDDEN WE REAP TURN THE
ECONOMY OFF AND THEY HAVE NO
ECONOMY OFF AND THEY HAVE NO
PLACE TO PUT IT.
PLACE TO PUT IT.
IT’S A VERY SHORT RUN THING
IT’S A VERY SHORT RUN THING
BECAUSE PEOPLE ARE GOING TO
BECAUSE PEOPLE ARE GOING TO
ADJUST DOWN THE PRODUCTION AND
ADJUST DOWN THE PRODUCTION AND
PEOPLE WILL ADJUST DOWN THE
PEOPLE WILL ADJUST DOWN THE
REFINING CAPABILITIES.
REFINING CAPABILITIES.
PRETTY SOON THINGS WILL FIND A
PRETTY SOON THINGS WILL FIND A
NEW NORMAL.
NEW NORMAL.
THE MOST IMPORTANT THING TO
THE MOST IMPORTANT THING TO
REMEMBER IS ALL THESE POLICIES
REMEMBER IS ALL THESE POLICIES
THAT WE ARE PUSHING, THAT
THAT WE ARE PUSHING, THAT
SECRETARY MNUCHIN HAS BEEN
SECRETARY MNUCHIN HAS BEEN
WORKING WITH THE HOUSE AND
WORKING WITH THE HOUSE AND
SENATE LEADERS TO GET THIS DONE
SENATE LEADERS TO GET THIS DONE
HOPEFULLY MAYBE TODAY OR
HOPEFULLY MAYBE TODAY OR
TOMORROW, WE ARE BUILDING A
TOMORROW, WE ARE BUILDING A
BRIDGE TO THE OTHER SHORE WHEN
BRIDGE TO THE OTHER SHORE WHEN
WE CAN OPEN UP AGAIN AND
WE CAN OPEN UP AGAIN AND
EVERYTHING LOOKS LIKE IT’S
EVERYTHING LOOKS LIKE IT’S
WORKING WELL.
WORKING WELL.
THE SMALL BUSINESS LOANS ARE
THE SMALL BUSINESS LOANS ARE
KEEPING PEOPLE ATTACHED TO THEIR
KEEPING PEOPLE ATTACHED TO THEIR
EMPLOYERS.
EMPLOYERS.
WHEN, THE ECONOMIES WILL TURN
WHEN, THE ECONOMIES WILL TURN
BACK ON.
BACK ON.
I DON’T THINK WE WILL SEE THIS
I DON’T THINK WE WILL SEE THIS
AGAIN.
AGAIN.
YOU BASICALLY HAVE A DEAL FOR
YOU BASICALLY HAVE A DEAL FOR
$500 BILLION TO FLOAT MORE MONEY
$500 BILLION TO FLOAT MORE MONEY
TO SMALL BUSINESSES, STRUGGLING
TO SMALL BUSINESSES, STRUGGLING
IN AMERICA TO RIGHT NOW.
IN AMERICA TO RIGHT NOW.
DO YOU HAVE A DEAL, DO YOU THINK
DO YOU HAVE A DEAL, DO YOU THINK
ABOUT IT IN THE SENATE COULD
ABOUT IT IN THE SENATE COULD
COME AS EARLY AS TODAY?
COME AS EARLY AS TODAY?
>> YOU KNOW I’M JUST AN
>> YOU KNOW I’M JUST AN
ECONOMIST AND NOT INVOLVED IN
ECONOMIST AND NOT INVOLVED IN
THE IN NEGOTIATION BUT WHEN WE
THE IN NEGOTIATION BUT WHEN WE
WERE MEETING THIS MORNING IN THE
WERE MEETING THIS MORNING IN THE
WEST WING, IT SOUNDS LIKE WE
WEST WING, IT SOUNDS LIKE WE
WERE VERY, VERY CLOSE TO THE
WERE VERY, VERY CLOSE TO THE
DEAL.
DEAL.
I FULLY EXPECTED.
I FULLY EXPECTED.
I THINK THAT WE’VE BEEN VERY
I THINK THAT WE’VE BEEN VERY
PLEASED TO SEE THAT PEOPLE HAVE
PLEASED TO SEE THAT PEOPLE HAVE
BEEN PUTTING THEIR PARTISAN
BEEN PUTTING THEIR PARTISAN
DIFFERENCES ASIDE.
DIFFERENCES ASIDE.
AND HOPEFULLY AS THE DISEASE
AND HOPEFULLY AS THE DISEASE
DISAPPEARS, YOU CAN TURN THE
DISAPPEARS, YOU CAN TURN THE
ECONOMY BACK ON AND EVERYTHING
ECONOMY BACK ON AND EVERYTHING
WILL STILL BE IN PLACE SO WE CAN
WILL STILL BE IN PLACE SO WE CAN
GET GOING AGAIN QUICKLY.
GET GOING AGAIN QUICKLY.
THIS MORNING I HEARD THAT THEY
THIS MORNING I HEARD THAT THEY
WERE REALLY, REALLY CLOSE BUT I
WERE REALLY, REALLY CLOSE BUT I
DIDN’T HEAR THAT THEY WERE
DIDN’T HEAR THAT THEY WERE
FINAL.
FINAL.
BUT I’VE NEVER HEARD THEM SAY
BUT I’VE NEVER HEARD THEM SAY
THEY WERE REALLY CLOSE AND THEN
THEY WERE REALLY CLOSE AND THEN
HAVE A DEAL FALL APART.
HAVE A DEAL FALL APART.
>> Ed: A LOT OF PEOPLE ARE
>> Ed: A LOT OF PEOPLE ARE
COUNTING ON THAT MONEY.
COUNTING ON THAT MONEY.
ON THE QUESTION OF THE LOANS, I
ON THE QUESTION OF THE LOANS, I
HAD A BUSINESS LEADER TEXT ME
HAD A BUSINESS LEADER TEXT ME
THIS MORNING AND SAY HE’S
THIS MORNING AND SAY HE’S
HEARING A LOT OF REPORTS THAT
HEARING A LOT OF REPORTS THAT
THE BIG BANKS LIKE CHASE ARE NOT
THE BIG BANKS LIKE CHASE ARE NOT
PUTTING THESE LOANS THROUGH IN
PUTTING THESE LOANS THROUGH IN
PART BECAUSE OF SOME OF THE
PART BECAUSE OF SOME OF THE
RESTRICTIONS FROM DODD-FRANK.
RESTRICTIONS FROM DODD-FRANK.
AND THAT’S FRUSTRATING A LOT OF
AND THAT’S FRUSTRATING A LOT OF
PEOPLE.
PEOPLE.
WHERE SOME OF THESE LAWS CREATED
WHERE SOME OF THESE LAWS CREATED
AFTER THE FINANCIAL CRISIS?
AFTER THE FINANCIAL CRISIS?
WERE THEY MEANT TO HELP THE
WERE THEY MEANT TO HELP THE
LITTLE GUY AGAINST THE BIG
LITTLE GUY AGAINST THE BIG
BANKS, ARE THEY ACTUALLY HURTING
BANKS, ARE THEY ACTUALLY HURTING
YOU IN THE PROCESS BECAUSE THE
YOU IN THE PROCESS BECAUSE THE
BANKS MIGHT BE HANDCUFFED TO
BANKS MIGHT BE HANDCUFFED TO
ACTUALLY LOAN SOME OF THE SMALL
ACTUALLY LOAN SOME OF THE SMALL
BUSINESSES MONEY?
BUSINESSES MONEY?
>> I KNOW THIS IS SOMETHING THAT
>> I KNOW THIS IS SOMETHING THAT
THE BANK REGULATORS AND THE
THE BANK REGULATORS AND THE
FEDERAL RESERVE THAT THEY ARE
FEDERAL RESERVE THAT THEY ARE
FOLLOWING VERY, VERY CLOSELY,
FOLLOWING VERY, VERY CLOSELY,
AND THAT FORBEARANCE MIGHT BE IT
AND THAT FORBEARANCE MIGHT BE IT
IN NECESSARY TO MAKE SURE
IN NECESSARY TO MAKE SURE
EVERYONE GETS THE MONEY THEY
EVERYONE GETS THE MONEY THEY
NEED TO.
NEED TO.
BUT REMEMBER THE REASON WHY WE
BUT REMEMBER THE REASON WHY WE
NEED THIS NEW BILL IS THE
NEED THIS NEW BILL IS THE
PROGRAM WAS SO SUCCESSFUL THAT
PROGRAM WAS SO SUCCESSFUL THAT
THEY ARE RUNNING OUT OF MONEY.
THEY ARE RUNNING OUT OF MONEY.
SO THERE ARE A LOT OF PEOPLE
SO THERE ARE A LOT OF PEOPLE
GETTING LOANS BUT RATHER
GETTING LOANS BUT RATHER
EVERYONE THAT SHOULD GET A LOAN
EVERYONE THAT SHOULD GET A LOAN
HAS GOTTEN A LOAN IS SOMETHING
HAS GOTTEN A LOAN IS SOMETHING
THAT REGULATORS ARE LOOKING
THAT REGULATORS ARE LOOKING
CLOSELY INTO RIGHT NOW.
CLOSELY INTO RIGHT NOW.
>> Sandra: KEVIN, YOU ARE
>> Sandra: KEVIN, YOU ARE
TALKING ABOUT FLIPPING THE
TALKING ABOUT FLIPPING THE
SWITCH BACK ON AND I HEARD YOU
SWITCH BACK ON AND I HEARD YOU
SAY DURING THIS INTERVIEW,
SAY DURING THIS INTERVIEW,
TURNING IT BACK ON.
TURNING IT BACK ON.
A LOT OF PEOPLE DON’T THINK IT’S
A LOT OF PEOPLE DON’T THINK IT’S
GOING TO BE THAT EASY, AND NOT A
GOING TO BE THAT EASY, AND NOT A
V-SHAPED RECOVERY, POSSIBLY MORE
V-SHAPED RECOVERY, POSSIBLY MORE
U-SHAPED.
U-SHAPED.
YOU ARE TALKING NOW AND A
YOU ARE TALKING NOW AND A
BRAND-NEW INTERVIEW ABOUT SECOND
BRAND-NEW INTERVIEW ABOUT SECOND
QUARTER GDP TAKING THE BIGGEST
QUARTER GDP TAKING THE BIGGEST
HIT SINCE THE GREAT DEPRESSION.
HIT SINCE THE GREAT DEPRESSION.
SO HOW HARD HAVE WE BEEN HIT?
SO HOW HARD HAVE WE BEEN HIT?
PUT A NUMBER TO IT.
PUT A NUMBER TO IT.
AND ARE YOU REALLY ANTICIPATING
AND ARE YOU REALLY ANTICIPATING
THAT QUICK OF A SNAP BACK THE
THAT QUICK OF A SNAP BACK THE
ECONOMY?
ECONOMY?
>> I THINK THAT IT IS A GRAVE
>> I THINK THAT IT IS A GRAVE
ECONOMIC SITUATION FOR SURE AND
ECONOMIC SITUATION FOR SURE AND
WE ARE LOOKING AT ONE OF THE
WE ARE LOOKING AT ONE OF THE
BIGGEST SHOCK THAT ANY MAJOR
BIGGEST SHOCK THAT ANY MAJOR
ECONOMY HAS EVER EXPERIENCED AND
ECONOMY HAS EVER EXPERIENCED AND
A DECLINE IN GDP AND THE
A DECLINE IN GDP AND THE
SECOND QUARTER THAT COULD END UP
SECOND QUARTER THAT COULD END UP
BEING THE BIGGEST WE’VE EVER
BEING THE BIGGEST WE’VE EVER
POSTED BECAUSE SO MANY THINGS
POSTED BECAUSE SO MANY THINGS
HAVE JUST SHUT DOWN.
HAVE JUST SHUT DOWN.
EVEN LIKE SHUTTING DOWN SCHOOLS
EVEN LIKE SHUTTING DOWN SCHOOLS
HAS A REALLY BIG NEGATIVE EFFECT
HAS A REALLY BIG NEGATIVE EFFECT
ON GDP BECAUSE THEN THEY DON’T
ON GDP BECAUSE THEN THEY DON’T
COUNT, EVEN IF THE TEACHERS ARE
COUNT, EVEN IF THE TEACHERS ARE
BEING PAID TO COME THEY DON’T
BEING PAID TO COME THEY DON’T
COUNT THE PRODUCTION OF THE
COUNT THE PRODUCTION OF THE
SCHOOL IN GDP NUMBERS AND THAT
SCHOOL IN GDP NUMBERS AND THAT
ALONE IS LIKE THREE 3% OF GDP.
ALONE IS LIKE THREE 3% OF GDP.
IF YOU HAD IT ALL UP YOU ARE
IF YOU HAD IT ALL UP YOU ARE
LOOKING AT A BIG NEGATIVE NUMBER
LOOKING AT A BIG NEGATIVE NUMBER
AND THE QUESTION IS WHAT HAPPENS
AND THE QUESTION IS WHAT HAPPENS
NEXT?
NEXT?
SADLY ECONOMIC SCIENCE DOESN’T
SADLY ECONOMIC SCIENCE DOESN’T
TELL US WHAT HAPPENS SOMETHING
TELL US WHAT HAPPENS SOMETHING
HAPPENS LIKE THIS BECAUSE IT’S A
HAPPENS LIKE THIS BECAUSE IT’S A
PAUSE.
PAUSE.
BECAUSE OF THE REALLY SMART
BECAUSE OF THE REALLY SMART
ACTION WE TAKE AND WE SORT OF
ACTION WE TAKE AND WE SORT OF
KEPT PEOPLE CONNECTED TO THEIR
KEPT PEOPLE CONNECTED TO THEIR
JOBS WITH THESE LOANS TO SMALL
JOBS WITH THESE LOANS TO SMALL
BUSINESSES AND SO THERE IS THE
BUSINESSES AND SO THERE IS THE
CHANCE THAT THIS WON’T TURN INTO
CHANCE THAT THIS WON’T TURN INTO
A LENGTHY RECESSION.
A LENGTHY RECESSION.
BUT, IT’S A CHANCE.
BUT, IT’S A CHANCE.
WE DON’T KNOW FOR SURE BECAUSE
WE DON’T KNOW FOR SURE BECAUSE
THIS IS UNPRECEDENTED TERRITORY
THIS IS UNPRECEDENTED TERRITORY
AND THAT’S WHY I THINK THAT
AND THAT’S WHY I THINK THAT
PARTISANSHIP HAS BEEN PUT ASIDE
PARTISANSHIP HAS BEEN PUT ASIDE
AND PEOPLE ARE TAKING BIG
AND PEOPLE ARE TAKING BIG
ACTIONS BECAUSE WE ARE
ACTIONS BECAUSE WE ARE
EXPERIENCING THE BIGGEST SHOCK
EXPERIENCING THE BIGGEST SHOCK
THAT THIS ECONOMY HAS EVER SEEN.
