RADIO

THIS bank's policy hints we learned NOTHING from 2008 crash

A new Bank of America policy designed to help certain Americans own homes hints that U.S. financial leaders have learned NOTHING from the 2008 crash. Carol Roth, ‘recovering investment banker’ and author of 'The War On Small Business,' joins Glenn to detail how policies like this one not only put our economy at risk of another financial crash but could wipe out the middle class as well. Plus, Roth and Glenn discuss signs that China — thanks to its bursting property bubble — is heading towards financial DEPRESSION...

Transcript

Below is a rush transcript that may contain errors

We have Carol Roth joining us now, the author of the war on small business. Former -- as she likes to say, recovering investment banker. And I want to get her on today, and ask her, what this means. This is according to the Wall Street Journal. The real estate giant in China has said, China's property market has slid into severe depression.

Hi, Carol, that sounds scary.

KENNEDY: Hi, Glenn. Happy September. What a great way to kick off the last four months of the year, with a big tee pregnancy in China.

GLENN: Right. Right. (?) what does it mean?

KENNEDY: So China is basically a giant mess. Obviously, outside of their demographic issues. Outside of the fact that they're not really an emerging market. And that's putting pressure on their manufacturing. They have sort of the confluence of things going on. The covid disruptions. They have heat and water power issues, that are basically rationing energy. They have youth unemployment, at 20 percent. And then they have this property bubble that has bursted. So basically China did something similar to what we did. It was a communist version of what we did here leading up to the great recession, financial crisis, where they just plowed a bunch of cheap money into creating lots of and lots of real estate.

GLENN: Like ghost cities. Not lots of real estate. Whole cities that had no one in them.

KENNEDY: Yeah. That literally in the middle of nowhere, that no one wanted to live in. And then the prices just started to get out of control. One of the things that are a little bit different -- well, there are a lot of things different about China. One of those things is that housing is about 70 percent of household wealth. People that have money, that the middle class, they don't trust the stock market. Which they should not. And over 90 percent of households in China actually own their residence. So that compares to about 65 percent of the United States. So a huge, huge alternate of the wealth of the middle class is tied up. Within real estate. And the property has gotten crazy. Like in the major cities, it's about 50 times the average income, in a -- in a crazy place in New York, it's about ten times the average income. So you can see that that has really gotten completely out of control. And we all knew that it was unsustainable. It was just sort of a question of when. Chinese policy and then all these other events kind of came together at the same time, and now like we suffered through 20 years ago, they are going to have to endure the same thing, but, you know, with a different tenure because it's a communist country. China owns the bank, they have -- the whole middle class is sort of involved, and their wealth is tied up in this. So this is a major issue for the Chinese economy.

GLENN: I will tell you, that this should strike everyone as more than a little odd. You know, it's not odd for us to see protests in front of banks.

KENNEDY: Yeah.

GLENN: In China, that is akin to protesting the Communist Party. They've rolled in with tanks and soldiers. And people are still protesting. That shows how unhappy people are, with what is going on.

Because in China, as I understand it, please correct me if I'm wrong. Here, we go out, find a house, then we go to a bank. In China, you go to a bank, you get a loan, you start paying on that loan. And then you go to a builder, and it might take five years. But you're paying on that. And what happened is, these builders (?) paying on this loan, and they, had a? Lose their money.

KENNEDY: Yeah. There's actually reports of people living in unfinished homes, so as you mentioned the middle class in China, they've started to band together, and they're basically saying, we're not paying our mortgages anymore. And you have to remember, that China has implemented their social credit system. And one of the dings for social credits is not paying your debts. Which your mortgage would obviously fall into. So the fact that they're willing to stand up against the Communist Party. Against the social credit pushback, just goes to show, as you said, just what a complete disaster this is for the Chinese people. And the governments.

GLENN: So President Xi, he is elected one more time. I think it's in November, isn't it?

KENNEDY: Mid-October. October 16th.

GLENN: So he's running for reelection, and he did change the Constitution that he could be dictator for life, but only after this election. When Pelosi went out, the word is from people that I know in China, that are high up in -- in the banking world, that do business in banking over there, that they've been watching their press very closely. Because there's a -- there's half of China, and the leadership. They don't want Xi.

And so some of the reports, that came out, when he -- when -- when Pelosi was going over, where they said, he's going to shoot that plane out of the sky. They made all of these -- you know, of these demands or expectations of Xi, knowing he couldn't do it, because humiliation is one of the worst things -- weakness is horrible in China. So they set him up to be weak. How does this play in his election?

KENNEDY: Well, you know, we would assume, that there would be fair elections. Obviously, that's in question, even in the United States. It certainly is not the case in communist China. And so I think that, you know, being entrenched in the party, even though there is pushback. I think it would be a giant surprise, if he wasn't elected again. And I do think that censorship has played a big issue, in this. You know, part of the reason, I've been told that they had these covid lockdowns, is because they're trying to control information -- not let people talk to each other. Not let people in the country, to let the real tenure of what is going on out into the broader population. So there are a lot of people in China, who even though they may be upset about this one particular thing, don't really have a scope on the real story, and who knows what they're being told.

GLENN: That's unbelievable. This story leads me to something. Bank of America has just started a policy that sounds very familiar, except race is involved now. Zero down payment, for mortgages for first time buyers. And I believe this is minorities. To help minorities -- black and Hispanics grow ownership of homes.

Zero down payment. Zero closing costs. So just come on in. It's like renting a house. Isn't this what caused 2008?

KENNEDY: You know, I know that history always repeats itself. And human beings have a hard time learning from the past. But really, this wasn't that long ago. You would think there would be some grace period. Where we would go, okay. This probably isn't a good thing to do.

And it's really frustrating. Because it's one of those things that sounds very nice on the surface. Oh, we'll help these underserved communities build wealth. That's a good thing. We want everybody in this country, to participate in wealth creation opportunities. The last way that you do that, is at a point where we're having a top in the housing market. The bed is raising rates. We're heading into a recession. Prices will come down. And then you take somebody, who can't afford a down payment. And you get them paying on a house, that you know they won't be able to afford over the long-term. That's basically stealing equity from them in the long-term, making them very afraid to continue to do that, in the future.

GLENN: This is -- this is what they called predatory lending.

And it's being pushed, I'm sure, by the government. It's being pushed by these big banks. They're all in collusion with the great reset. It's going to impoverish people, even more.

KENNEDY: Yeah. If you want to tie this to the ESG, right? This is part of the -- the social initiative, we have to make housing more affordable. But that doesn't do that. I mean, this creates more fees for banks, at a time when they may be losing fees in origination. Because the fed is raising interest rates. And that's flowing through the market. You know, it's not like they're creating a fund, and saying, we're going to buy up properties. And we're going to allow to you rent to loan. There are ways you can do this for underserved communities, that will be fantastic. But zero down mortgage -- and, by the way, it's not like a veteran zero down mortgage, where there's a strict underwriting process. This is a non-underwritten process. (?) we've seen how this has gone awry in college lending. Now they're bringing it back to the mortgage industry. Once again, because there wasn't enough damage the first time around.

GLENN: O they want to make sure that there's nothing (?) left for people to learn.

KENNEDY: Or. Or maybe they want the correspond to be able to have this, at the expense of the (?) middle class. And they'll just forgive those loans. Like, you know, they're on the kick of forgiving every other loan. There's a buffet of possible, fantastic --

GLENN: And none of them are good. None of them are honest. None of them are free market-based. None of them are ethical. None of them.

KENNEDY: No. It's picking winners and losers. It's letting the government and these big entities play venture capitalists in a way that she shouldn't.

And it's not teaching sort of the discipline, so that we allow for these broad creation opportunities. Which is the future of prosperity. Because we know at the end of the day, big business. Big government. Big special interest, doesn't want that. They want to gut the middle and working class. They want to consolidate power. So every one of these (?) ultimately ties back to that in some way.

GLENN: Energy prices. Goldman Sachs is now saying, just the energy prices will push the UK inflation to 22 percent.

That is a near post-war record of 22 percent inflation.

That's -- I mean, we -- let me get another story here. Because I read here, cost of living. Shoppers despair, at cost of staple foods, soar up to 20 percent in a year.

That's remarkable! I mean, we're all going to see this.

And it's -- a lot of this is coming from this craziness of ESG with the energy.

KENNEDY: Absolutely. This is entirely self-inflicted. That's the most frustrating part of this. It could have been avoided. But it was the liberty by policy. And who is going to pair the brunt of it. It is the small businesses. It is the million dollars and working class. It is the core to people, who really can't have this happen. I've seen this all over Twitter. I've been sharing all the stories coming out of Europe and the UK in particular. With small businesses who are getting their energy bills. And something like 10,000 euros, or, you know, like multiple tens of thousands of euros. And it's just completely non-sustainable. I mean, obviously nobody is going to be able to operate under those types of conditions. It's going to be a really ugly winter.

And as we're talking about, not learning. This should be a giant neon sign to say, okay. They made a mistake. Let's (?) they just passed the biggest climates bill. And are telling about what a great deal it is. As if there's not more pain and suffering on the other side.

GLENN: I know. I will tell you, Marx said for a Communist Revolution to happen, you need to have the working class rise up, and then they could close it down.

And that -- if you can't get them naturally, you have to create the conditions for that. And everything, including the IRS, all of these things are designed to abrupt the middle and lower class. (?) to wipe them out entirely. And when that happens, you will have revolution on the street. It is -- yeah. Go ahead.

KENNEDY: You will own nothing. And you will not be happy. Because as we've seen throughout history, those who do not own anything, are not the ones who are happy.

GLENN: Yes. Thank you very much, Carol. Appreciate it.

KENNEDY: Another uplifting segment, Glenn.

GLENN: One of these days it will turn around. One of these days. Yeah. Thank you so much. I appreciate it.

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RADIO

Meet the pro-Intifada candidate NYC Democrats just elected

New York City Democrats just elected 33-year-old Zohran Mamdani, a "socialist Muslim", as the Party's candidate for mayor. But Glenn Beck argues that his radical beliefs are actually communist and Islamist.

Transcript

Below is a rush transcript that may contain errors

VOICE: Z10852. Something weird is going on. The World Trade Center is on fire.

VOICE: Seriously the top of the building. We're trying to get information.

VOICE: Top level of one of the --

VOICE: To unfold from New York City.

VOICE: A plane crashed just --

VOICE: My sister is in that believe. I hope she's okay. I have to come to New York.

VOICE: It's pandemonium.

VOICE: It's raining papers.

VOICE: Wait a minute! Stop just a second. Why are we -- why are we -- I've got breaking news. Breaking news, yesterday. New York City just elected as their mayoral candidate for the left. And the Democrats, a -- a Muslim radical, who is also a communist!

So, you know, it only took you 25 years. It only took you 25 years, New York, to go completely insane.

Somebody who is -- well, I mean, if I might quote Michael malice today. I am old enough to remember when New Yorkers endured 9/11 instead of voting for it.

But you've got a -- you've got a communist jihadist apologist now.

Who was -- you know, well, CAIR put $100,000 behind his bid for New York City mayor.

So you have somebody who is endorsed by CAIR. That's really good.

He also was somebody who said, you know, he was -- he was for the shooting of the United Health Care CEO.

Said he was looking forward to driving down magnum Joan avenue. I don't know. Sounds like supporting people in the streets. Maybe it's just me.

Then he also said that he was going to globalize the intifada, which I think that's -- maybe -- maybe that's just me.

I mean, what do I know?

Tim Miller who is a podcaster. Asked him a few weeks ago. Asked him about his pro Palestinian slogan. Globalized the intifada. And he said, for me, ultimately, what I hear in so many, is a desperate desire for equality and equal rights, in standing up for Palistinian human rights. Oh, is that what you hear, Mr. CAIR?

Really? Huh, that's interesting.

Right. So globalize the intifada.

I mean, I mean, sure, that's -- I mean well, let me go on.

Because I don't want to take him out of context.

He then delved into the semantics of the intifada, citing the United States Holocaust memorial museum's use of a word for a translation for uprising, in an Arabic version of an article, a museum published about the Warsaw ghetto.

Oh!

So this is just a comparison, about the -- the armed rebellion against the Nazis!

I don't know if that makes me feel better!

I mean, if we're globalizing that.

We're the Nazis in this scenario.

Because I don't think it's the Palestinians.

I certainly don't think it's anybody who is like, hey.

Global jihad. I don't think it's those guys.

Or the Nazis. Who are the Nazis in that?

And it seems, if that's what you mean, then it's not just a harmless kind of slogan about human rights. It is a call for violence on the streets.

Because I don't know if you know, that's what happened when the Jews had their uprising against the Nazis.

I'm just saying!

But, hey, hey, free Palestine.

Oh, that's not what that means, gang. That is not what that means, but don't worry about it. He's just going to be possibly the new mayor.

And that's great. By the way, the Columbia faculty members signed a letter defending Hamas.

They were also among the donors to his mayoral campaign.

So, you know, you don't have anything to worry about.

And his father, who used to work at Columbia. Do you know, Stu?

Is his Dad -- is he still a professor at Columbia University?

He said that -- this violent terror thing of Islam, is not a part of Islam. Now, I've read the Koran, and much of the hadith.

And I'm pretty sure the violence is a part of that. But no.

No. This is something entirely new.

And his father while at Columbia university, wanted everybody to know, that this is actually -- this is something that came out of America!

America is really responsible for this.

And, you know, it really started with the Reagan administration, you know, when he started -- when he started with his very religious terms, to finish the war against the evil empire.

So, you know, that's where -- that's where 9/11 came from.

Is what -- don't worry about it! Don't worry about it!

Because who am I? I'm clearly just -- am I an anti-Semite today, or am I an Islamophobic? I can't remember which one.

Oh, it's probably both. Anyway, Islamophobia. Let me just explain Islamophobia. I haven't even gotten to the Communist part of it. Which is really, really -- New York, you're in one for hell of a ride. Buckle up.

It will be a fun rollercoaster for you. My gosh, I've never been happier that I've been away are if New York.

Anyway, I just want I to know, there is Islam. And then there is Islamists. Now, an Islamist is somebody who really wants Sharia law.

That's political Islam!

That's not a faith. That's political Islam.

Now, let me make really -- something really clear. Criticizing Islamism, is not Islamophobia. Pointing out the dangers of, oh. I don't know.

Political Islam. The ideology that seeks to use the tools of democracy, ultimately to destroy democracy, is not an attack on Muslims.

No. Uh-uh.

You know why?

Because Muslims are often the first people in line.

The first victims of the ideology.

So let's draw a bright, bright line between Islam as a faith, millions of people can practice that faithfully and peacefully.

It's mostly peaceful, okay?

Then there's the Islamism.

Islamism is something entirely -- that's a political project.

A theocratic political -- oh. Left loves theocracies. They love it.

Of course, you never see a problem with it.

See it when an Islamist is touting it. Anyway, it's not about prayer. It's not about fasting. It's not about spiritual life.

It's all about power. It's about merging of mosque and state. It's about implementing Sharia, not as a personal code of conduct. But as a governing legal system.

And it's -- it's supremacy.

Absolutely. Faith.

Religion.

It's -- there's one thing that's supreme.

It's misogynistic.

Deeply intolerant of all kinds of things.

Descent. Secularism. Other faiths. Even competing interpretations from inside the faith itself.

It will behead them too.

So let's -- let's be honest here for a second.

You know, CAIR should be labeled an international terror organization.

In my opinion. In my opinion.

Oh, does that make me -- that makes me an Islamophobe. I'm sure. I'm sure they will start a campaign against me on being an Islamophobe.

Stand in line, guys. You've been doing it since 2001, okay?

I don't really care. And I don't think the American people. I think that record, all the grooves are worn-out on that one, okay?

This is not a religion we're talking about. When we're talking about Sharia law. And we're talking about globalize the intifada. What does that mean, actually, to globalize it?

Does that mean we now want to do what is happening to Israel? All over the world?

Has the Palestinian plight become our plight you now, as Americans?

That there has to be an intifada here!

Because it's the kind of the same. You know. It's kind of the same over, you know, with what the Palestinians are going through.

Well, it's very much like what the Jews went through with the Nazis.

That's a weird one. That one makes my head hurt. It's very much the same as that. And very much the same as the fight against Donald Trump.

Oh, this is going to be fun. It's fun!

Really fun. You know, the irony here is, the ones that will scream Islamophobia the most, are the ones in the progressive left, the champions of feminism, LGBTQ rights. And secularism.

They're going to -- no. You want -- they're going to stand with the people, who want to kill them first.

See, this is how smart they are!

This is why it's going to work out well, in New York City.

Let me just say. If you have an ounce of common sense, you run a business, you have an ounce of wealth. And I don't mean wealth like, you know, hey, Lovey.

Let's get on the boat for a three-hour tour with a suitcase full of cash. I mean you saved anything, anything, get the hell out of New York City.

I mean, this is about survival. This is about free speech. This is about women's rights.
Religious pluralism. Secular legal systems. Liberal democracy.

But it's also about failed principles of Communism. Okay?

First, you have to call out political Islam for what it is. Okay?

And we have to do it with the clarity that we call out white nationalism.

Got to do it with that. Got to -- you know, the Klan. Really bad people.

Really bad people.

Anybody who is shouting for globalized intifada?

Pretty bad. Pretty bad people.

Okay?

Now, let's get to communism.

Because that's another cool, cool angle of the new Democratic candidate for -- for mayor of New York City.

That I just -- I think is cuddly and cute. Sure, it led to 100 million deaths. But this time, New York is going to be radically different. Oh, did I use the word radical?

I didn't mean to use that. What's radical about this guy?

Nothing. He's just like you!

Well, not exactly.

But let's talk about communism, next!

Now, the new mayoral candidate that's running there in New York City. That so many young people rushed to defend and vote for. He's promising free buses.

That's going to work out.

Where are you going to get the money for free buses.

It's free!

City-run grocery stores.

Oh, rent freezes. And finally somebody has done it. A 30-dollar minimum wage.

So under the banner of equity. And, you know, we will tax the wealthy. And the corporations. You know, we're going to squeeze another $10 billion out of them.

Really?

Because they're going to call a U-Haul.

You know, they will call something like U-Haul. There will be a lot of -- there will be a lot of movers that are like, how do I get the truck back from Texas or Florida back up to New York? Nobody is moving up there.

But he's going to do it.

Now, his vision isn't really new. You know, just -- just tax people, so we could have city-run grocery stores. You know, I remember -- I'm old enough to remember those city-run grocery stores in Moscow.

They were great.

The shelves were empty.

But that's just Moscow.

It worked out completely different in Venezuela.

Where, oh, no.

It didn't. That's right. The grocery store.

They were eating the zoo animals.

But it will be different in New York.

Because they have rent controls too.

And that will just choke the housing supply, but don't worry. As a young family.

You know, you voted for it.

You know better.

It will work this time.

So, you know, I like building ideas, I just don't like usually building on the graves of 100 million people.

But, you know, why not? Why not?

You know, use this dogma.

And this time, it will be different. It's not like it was in China. Where the great leap forward, was a gross -- a gross parody of progress. Venezuela, which was oil rich. One of the richest nations in the hemisphere now sees 90 percent of its population in poverty!

Yeah. Darn it. You know what they did?

They decided to take state control of things.

You know, like grocery stores. And it worked out well. How is that free busing working out in Venezuela?

I just want to -- I just want to know.

Anyway, then you've got the globalize the intifada. Which is going to drop a little violence in, and anti-Semitism in with your communism.

Which is weird!

Because violence and anti-Semitism, always happen. When it -- when it comes to -- when it comes to communism.

This is weird!

I've got to play something for you. Because this has talked about on me earlier this morning.

Oh, wow.

Wait a minute. This is -- this is the whole coalition coming together here.

So this is going to be good. New York, this is going to be great.

It's going to be great for you.

No. He's going to uplift you. Then the social fabric of New York City is just going to be -- just one.

It's going to be fantastic. Don't worry about your 120 billion dollars in debt. Or your 10 billion-dollar deficit that you have right now.

You are going to charge the rich more taxes, and they will stay right there.

They will be like, you know what, that 46 percent in taxes that I'm paying, this is just not enough. It's just not enough.

I need to pay 60 or 70 percent to be able to pay my fair share. So that's good. That's good. That's good.

You know, they're not risking 100 million people. It's just 8 million people.

This time, it's just 8 million people.

But, hey. For those of you in upstate New York. That aren't going to be part of this experiment.

Don't worry, you get to pay for it. Because they'll kick it up to the state. The state will have to subsidize everything. And don't you love it?

Really, don't you want to subsidize the really crazy ideas of New York City?

I mean, why don't you have a -- why don't you have a democratic socialist. A/k/a communist mayor.

Why haven't you done that? Are you not progressive enough? Are you not looking into the future?

Are you stuck in the past?

I don't know. I don't know. The graveyard is pretty big. I have a hard time getting past that one. You know, yeah, so I'm stuck in the past. Because I can't seem to pass that graveyard, and get to be down the path with you. But it's going to be a paradise.

Forget arithmetic. You know, or human nature. This time, it's going to work. It's going to work. So all right!

Wish I lived in this morning.

No wait. Nope. I don't. Nope, I don't.

And Ted Cruz, stop it. Stop writing, hey, come to Texas. No. No. Don't come to Texas. Don't come to Florida. Go to California. It's beautiful this time of year. Go there. Go there.