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GLENN BECK PROGRAM
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GLENN:
888-727-BECK. I can't say that he's a friend of mine. I
would like to say that someday I can call him a friend of
mine. Neil Cavuto, one of the straight-up good guys on the
planet today is a guest on the program here. Hello, Neil,
how are you?
CAVUTO: Hey, Glenn, I'm calling you a friend. I'm just
running with it. So I mean, it's working for me.
GLENN: I am as
well. I have to tell you, Neil -- well, first let me get
into the business of the day. I wanted to have you on
because I'm not a real optimist on the economy. I am a guy
who, I believe in America, I believe in capitalism. You
know, I'm a Ronald Reagan guy, I really am. However, I think
we're facing a real storm of things that are all starting to
come together that are just going to be a real problem for
us if we don't make all of the right moves or if there's any
additional pressure put on your economy and I've been
warning, look out, look out, this stuff with the banks and
liquidity is a real problem and everybody is in denial on
it, everybody's being, you know, oh, Glenn, you're being
Chicken Little. I don't think I am. I didn't want to get
somebody who's more pessimistic on the economy than I am. I
wanted to get an optimist on. Explain what is going on now
with the world's central banks doing something they never
do. The last time they did this, correct me if I'm wrong,
was after September 11th.
CAVUTO: That's right, that's right. You're right to be
concerned about what could happen. I'm equally concerned
about the moves, Glenn, that could make things much worse.
I'm not in the camp, Glenn, that says all mortgages are
melting down. I'm not in the camp that says we've got
housing -- because I also look at all the numbers and I
realize that 95% of mortgages are being paid each month,
month to month on time and that even among sub prime
mortgages, Glenn, close to 9 out of 10 of those are being
paid on time.
GLENN: Right.
CAVUTO: So having said that what I worry about is the
perspective that some in Washington lack and for the bulk of
the few who aren't paying their mortgages -- and it's a
record few. I don't want to minimize it. We are going to
make things worse for the overwhelming vast majority who
are. That's where I share your concern because Washington in
its infinite wisdom could really complicate this. They could
set up programs and the like to bail out homeowners and
lenders that for years, for decades to cut a freeze on
housing, but you must, must, must be careful of that.
Now, I also worry when central banks around the world get
together and throw in a lot of money to short the banking
system because what effectively they are doing, Glenn, is
trying to encourage lending or provide the money and the
reassurances effective there so people can lend. People have
to take the lump on that. You can't force someone to spend
their money. You can't -- although my wife says it's
relatively easy to do. You can't force that issue. So now we
have to see whether banks respond to this sudden flood of
money coming in.
GLENN: Okay. Here's the thing that I am concerned about. It
is -- the reason why, and please correct me where I'm wrong.
The reason why they are trying to free up more money is
because these banks are -- a lot of it is fear. They have to
make sure that they can cover anything that might go bad and
so what they're doing is they are cutting back. It's harder
and harder to get short-term loans which are like 30-day
loans to where if I've got some vegetables that need to get
to market, I usually go to my bank and I say, hey, you know,
I need the loan. 30 days it gets to trucking, to move things
here and there. And that money is drying up. And when you
dry up that money, then you've got a real problem. When
businesses can't get that 30-day loan, am I right on that?
CAVUTO: Well, I think stepping back from this, we're talking
$40 billion. I know that is the pooled money that is going
to be available here. $40 billion sounds like a great deal
of money, Glenn. Trust me I'm not trying to minimize what's
going on here. I am saying, though, we're talking about $5
trillion worth of monies available to lend. So you've thrown
$40 billion into the mix to encourage people to sort of, you
know, dip their toes in the water and lend either on a
short, medium or longer term basis to someone else. Now,
like CNBC here, I think what's going on is skittishness and
the lender is skittish to lend, the borrower is skittish to
borrow and these central banks are trying to get the two
together. They are trying to make it less of an issue for
the lender to lend and less of an issue for the borrower to
borrow. I'm trying to minimize it but I think what they are
trying to do is to get past the fear. That does not mean
there is no money available. There's a great deal of money
available. You can look in the newspaper on any day and see
the deals are popping for those who can put down 15 to 20%
on a home or who meet the criteria to get a loan. For those
type of people, there is no shortage of loan proceeds
available. But even -- the trouble is those people are the
ones who are saying, you know what, I don't know, I don't
know. Very smart people, very wealthy people I know are
telling me, Neil, you know, I was thinking about getting
that vacation home. I'm not so sure right now. So I'm
holding back. These are people who can afford and put down
the down payment and not pay for the whole thing in cash,
but they are just leery. So I think what central banks are
trying to do, what the President is trying to do in the
omnibus package, you know, to help lenders to get over the
help and borrowers to get over the hump is to say, guys, the
water's okay, try it. The great thing we have to get past
now, Glenn, is convincing people on both sides of the deal
to agree.
GLENN: Well, but you also have the problem, and I'm sorry, I
apologize because we are turning into CNBC here for a
second.
CAVUTO: That would never happen to you, Glenn.
GLENN: But I am concerned because -- did you read Amity
Shlaes' book?
CAVUTO: Yes, I did.
GLENN: Okay. We're making the same damn mistakes that we
made in the Great Depression. We've got people -- we've got
politicians proposing the same kinds of things that we were
proposing in the Great Depression.
CAVUTO: Right. And as she points out, we historically go
through this every couple of decades and we've done this
with, of course, the savings and loans back in the Eighties,
we've done it with Chrysler, we've done it with Continental
bank. When things get tough, we look for Draconian steps.
Unfortunately we do it after the animals have left the barn.
So you lock the barn good, you got the double, you know,
barrel shotgun outside just in case. But the animals aren't
there.
GLENN: Is it --
CAVUTO: And that is what I worry about, that the cure is
worse than the disease.
GLENN: Okay. I have been saying get out of debt, just get
out of debt. Part of the problem with our country is our
country is, you know, spending money like Paris Hilton at a
night vision video store, and we've got to stop doing that.
Wrong advice, too panicky advice?
CAVUTO: Well, since I'm living in a big glass house, I'm not
going to take you on on that. But I think it's true. The
problem when you get out of debt is the process of getting
out of debt means you free spending of an economy and when
you free spending in the economy, all of a sudden the --
GLENN: I've got a small enough audience, we're not going to
affect the economy.
CAVUTO: I'm not so sure about that. You have a certain best
seller out there.
GLENN: I'm just saying that if, for instance, you know,
don't go out and -- go buy Christmas presents. Just don't
put yourself deeper into debt. Just spend at your means. Buy
something that's, I don't know, $26, you know.
CAVUTO: Right, right.
GLENN: Down at the bookstore.
CAVUTO: I think this is the time everyone who buys gifts,
get that thing that says "As seen on TV. "
GLENN: I think you are exactly right. All right, Neil, I
want to -- and I hope this is okay with you. I guess I
should have asked this prior, but I have to tell you I think
I have more respect for you than anyone I have ever met in
television, and I know that's not saying very much.
CAVUTO: Then you must get out more.
GLENN: I know. But you are a remarkable man. Most people
don't know. I mean, they know if they read your book, that
you have MS. What I didn't know is that -- may I share what
happens to you sometimes?
CAVUTO: Sure.
GLENN: What you may not know if you've ever watched Neil
Cavuto is sometimes his legs don't work, sometimes his arms
don't work, sometimes he will go completely blind during a
show for 45 minutes and just keeps going.
CAVUTO: It's a highly rated show because then they know,
hey, this guy seems to be freaking out.
GLENN: Right. I think it would be kind of neat if I -- I
mean, you might want to play a little game, like a game.
CAVUTO: I have. People react to it. I'm like the crazy uncle
at the Christmas dinner and then we just say, hey, he's
really out of it, you know.
GLENN: When somebody says, oh, Neil Cavuto, he's blind as a
bat, you can say, sometimes I am.
CAVUTO: Absolutely right.
GLENN: Yeah. I just have a ton of respect for you. You know,
I know you have overcome so many things and you keep getting
hit with things and it never, ever stops you.
CAVUTO: That's the pot calling the kettle black, my mind. I
know it sounds like mutual in my society but my wife is a
huge, huge, huge fan of yours and she's tickled pink to meet
you on certain occasions and, man, hasn't stopped talked
about it.
GLENN: I have to tell you it's a cross I bear. I apologize.
I wreck so many marriages, I really do. It's just chicks dig
me.
CAVUTO: You're preaching to the choir, buddy.
GLENN: All right, Neil, thanks a lot, man. I appreciate you
being on. We'll talk again soon, my friend.
CAVUTO: All right. Be well.
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