Smarter than Glenn?


Sherry Cooper, Chief Economist at BMO Capital Markets

GLENN: Let me go to Sherry Cooper. She's a chief economist at BMO Capital Markets. Sherry, how are you?

COOPER: Well, I'm fine but this is really a rough day, I can tell you. Markets have sold off very sharply and there's great concern about what has turned out to be the most pervasive financial crisis in decades.

GLENN: You know, I said I don't know when, a long time ago we could be facing something that is akin to the Great Depression if there is significant downward pressure on a market this fragile and everybody says it's crazy. Now Alan Greenspan comes out where he says that this could be the biggest financial crisis since World War II. Well, gee, that's awfully darn close.

COOPER: Yeah.

GLENN: To where we were.

COOPER: Even the Fed has been doing research into the Great Depression and what actions could have been taken by the Federal Reserve at that time to have mitigated the situation, and one of the reasons that the Fed is doing what it's doing in terms of providing liquidity now for securities dealers is because the Fed estimates that about a third of all the banks that went under during the Depression actually would not have disappeared if there had been a lending facility available to them.

GLENN: But Sherry, here's the problem. I mean, first of all, socialism is socialism. The second thing is, you know, everybody says that, oh, there just has to -- CNBC today they're saying, "Oh, well, gee, you know, every bubble has to have one big purge and Bear Stearns was it." Last week, at this time last week nobody even was recognizing that Bear Stearns has a problem. There was whispers of it but it wasn't --

COOPER: No, absolutely. I mean, what we saw is there had been rumors about Bear, Bear denied the rumors which turned out to be true, but there really hadn't been a material change in their balance sheet but rumors become self-fulfilling when they cause a run on the bank. And what had happened is their customers absolutely wanted their money back. And when that happens, there's no institution that can survive it unless they can go to the Central Bank and borrow the money to meet with interest.

GLENN: So here's my question. Last week there was just rumors about Bear Stearns and it -- I mean, Bear Stearns just doesn't collapse, and it did. All of these institutions say, oh, no, we're fine. You've got extra fear in the market now. These are all dominoes.

COOPER: Yeah.

GLENN: Right next to each other. What is to prevent us or what is to give us any reassurance that there are a lot more dominoes to fall?

COOPER: The Fed. That's exactly what they did last night. What they said was that anybody who wants their money back, be it from Lehman Brothers or Merrill Lynch, the Fed is going to make sure they get their money back and so they have a less likelihood therefore of actually demanding their money back. It's psychology. Will it work? We're about to see.

GLENN: Okay. Then tell me what the means. I'm reading, this is in London Telegraph and it says Asian Mideast European investors stood aside at last week's auction, ten-year U.S. Treasury notes saying this is a disaster. We may be close to the point where uglier consequences of benign neglect towards the currency are revealed. Rightly or wrongly, the view has taken hold that Washington is cynically debasing the coinage hoping to export its day of reckoning through beggar thy neighbor policies. What is Europe afraid? What does this mean?

COOPER: Well, we've seen a surge in the Euro and the Yen, not the Canadian dollar interestingly. And that's going to be very difficult for those economies. Those economies as well that are pegged to the U.S. dollar like China are experiencing enormous inflation. The U.S. dollar is falling. The Fed is running the risk of triggering significant inflation pressure down the road. But at this stage they are -- they consider that to be secondary risk. Their number one concern right now is to the lender of last resort to prevent a global financial crash.

GLENN: And when you're saying that, are you saying a global market crash akin to the Great Depression?

COOPER: Well, I mean, of course. Now, there are a lot of things that have changed since then. For example, there is deposit insurance. As well commercial banks, particularly Canadian charter banks have very strong capital positions. They are regulated very highly and so it is very unlikely that we would see depositors go to institutions with deposit insurance and demand their money back. There's no need to. Their money is fine.

GLENN: Right. But their dollar may be worthless.

COOPER: Well, our dollar isn't worth less but the U.S. dollar has declined for sure.

GLENN: Right.

COOPER: And for good reason. Look what's going on in the U.S. The U.S. economy is in recession, the U.S. has enormous trade and current account deficits and foreigners have been financing this.

GLENN: Right.

COOPER: And there is a real question as to how much more foreign money is going to move into the U.S. Government bond market to help finance these deficits.

GLENN: Okay. Sherry, let me ask you this one more question and then this may be the dumbest question, all of these questions may be the dumbest questions that you receive all day, but I just last week took my money and I went for the index and I'm betting on the down because I just, I think we're in real, real trouble. What made me break out into a cold sweat today is that there's so much fear in the market, what would stop people from short-selling banks? What would stop people from trying to make money on the down side --

COOPER: That's what people are doing. That's exactly what people are doing. They are preying on the weakest institutions and public companies. And that's not just banks, by the way. Ford Motor Company is a great example. People -- there is a concept of insurance against declining prices of stock.

GLENN: Right:

COOPER: And that's called a credit defense swap. It's just an insurance policy that you can buy to pay off any loss that you would have in owning a particular company. Well, we can look at those credit default spreads which is really the premium to see how risky the market is perceiving a company to be. Well, there are a number of companies that have seen enormous increases in this premium just in the last couple of weeks.

GLENN: Can you give me the top couple?

COOPER: Well, the only one I can remember right now is Ford, but no doubt, you know -- I mean, these lists are available. They're out there. It's public information. And what's happening is investors, mostly hedge funds and institutional investors, are shorting these stocks, which means that, as you say in capitalism, people prey on the weakest of companies and that just makes those companies even weaker still. It drives down the price of their stocks even further.

GLENN: I just, I was --

COOPER: And even more selling.

GLENN: Right. I was concerned in particular about the financial institutions this week because, you know, I mean, that's what the Fed is really trying to -- I mean, they can't have the financial institutions break down and have another run on the bank. I mean, how long, how long can you keep going with dominoes falling before the Fed says, okay, I've got no more money, before our money really is worth less?

COOPER: Well, it is worst less but it's not worthless, if you know what I mean.

GLENN: I do.

COOPER: We have more to go but will it work is the question. I think it will work. I don't think the world's coming to an end. I don't think there's going to be literally a significant global Depression but for sure there's a recession in the U.S. and there's a risk that it could be quite deep and long.

GLENN: Okay. Thank you very much. Sherry, appreciate it. Sherry Cooper, chief economist at BMO Capital Markets.

The conditions in Afghanistan under the Taliban rule — for Americans, allies, Christians, women and more — continue to deteriorate, and the people there continue to plead that we will not forget them. On the radio program Monday, Glenn Beck gave an emotional update on current evacuation efforts, including the tragic story of one girl — an American passport holder — who was not rescued in time.

"I have a pit in my stomach like I haven't had in a while. What is happening in Afghanistan is both miraculous and horrendous," Glenn began. "What's going on right now one of the most amazing things I've ever personally witnessed — the evacuation of Americans, those [Afghans] who helped us, Christians that are dying, women that are under incredible conditions. I see things that I can't show you. I see the pleadings from people who are in safe houses, 'Please, don't forget us.' I see what they're being sent by the Taliban.

"If I die today, my entire life will have been worth it for what you have helped get done, in just the last three weeks. You have saved well over 5,000 people," he continued.

Fighting back tears, Glenn added, "I ask that you pray for those in the Middle East, that are in the midst of doing work, that a Moses-style miracle will happen. ... There are several people that are in dire need of medical care. Friday, we told you — along with the congressman from Oklahoma [Rep. Markwayne Mullin] who had just returned — [about] a father and two daughters that were blue passport Americans, and a mother who had a permanent residence, a Green Card. The daughter was very ill. And they thought, that if we couldn't get her out of there, that she would lose her legs. I got a call on Saturday morning, that we were too late, that she didn't lose her legs. She lost her life, waiting. There are now two Americans, instead of three."

Glenn showered his audience with gratitude, repeating that "well over 5000" lives have already been saved because of their incredible generosity, but lamented that there are still thousands more people yet to be saved.

Watch the video clip below to hear more updates from Glenn:

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To donate to these rescue efforts, visit NazareneFund.org or MercuryOne.org.

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To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

Megyn Kelly pulled her sons out of the private elementary school they attended after she learned that the boys were asked "weekly" if they were still sure they were boys. But that's not all that this "experimental transgender education program" taught.

Megyn joined Glenn Beck on the radio program to tell the story, which she thought had ended when the school apologized, and to talk about what's next for America as our leaders refuse to promote actual psychological support for our kids and instead "parade" transgenderism as the solution to their problems.

"When [my son] was in third grade, I found out they unleashed a three-week experimental transgender education program on these boys, with really inappropriate videos. The kids were confused. These are 8- and 9-year-olds, Glenn. They have no idea what the school is even talking about with the trans thing. They got really in-depth, with really in-your-face videos — and then parents complained. And the school did something it hasn't done in its 400-year history, which was they apologized. Even they realized they had done wrong," Megyn explained.

"But, then I said to my son a year later, so did they ever round back to the trans thing? Like, whatever happened with it? And he said ... they bring it up every week. ... [They ask] how many people here still feel confident that they're a boy? Do you still feel sure you're a boy?" she continued. "This is not support. This is not nonbullying. This is indoctrination. And it's deeply confusing to the children, and wrong."

Megyn went on to give examples of how she's seen trans ideology turn "support, nonbullying, kindness, friendship, allyship, on its head."

"The absolute surrender of the medical community to this insanity is a scourge on this nation. It's disgusting what is happening with our doctors," she added. "There are people who are legitimately transgender, or who have gender dysphoria. And for those people, we should be supportive and they should get the care that they need. But what we've done instead, is taken everyone who expresses any kind of gender confusion and said, you're trans. You're trans. And we have our psychiatrists doing this."

"It's crazy," Megyn asserted. "The fact that we're doing this so willy-nilly in the name of allyship and support, it's abusive. It's criminal."

Watch the video clip below to catch more of the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

"Never forget" is not only a tribute to those we've lost, it's a warning that it could happen AGAIN. On "Glenn TV" Wednesday, Glenn Beck looks back 20 years ago to the modern generation's Pearl Harbor moment. A day of infamy we're STILL feeling repercussions from.

But in remembering 9/11, we need to look toward the future because the Biden administration is setting us up for the NEXT 9/11. They bungled the Afghanistan withdrawal, and now we have video of top al Qaeda commanders — who served with Osama bin Laden — returning to the country. But could America survive another terror attack?

Glenn asks former NYC Mayor Rudy Giuliani, the leader who brought America back from the brink. He tells Glenn about the moment he learned the Twin Towers were struck, the actions he took to prevent more terrorism, and if he thinks NYC could survive another attack under Mayor de Blasio's leadership.

Glenn is also joined by Rev. Johnnie Moore, author of "The Next Jihad." He warns that Biden's policies in the Middle East are Obama 2.0, and "if you thought ISIS was bad, you haven't seen anything yet. We must keep our eyes on Iran."

Watch the full episode of "Glenn TV" below:


Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.