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Dave Ramsey Reacts To Potential Stock Market Crash!

Transcript

00:02
for those of you that are as old as me
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you remember this when we were kids we
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used to have these things called service
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stations they’re different than gas
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stations because someone would actually
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come out to your car and pump your gas
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for you and I distinctly remember on
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Nolensville Road the main drag right
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down from our home that there was a
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service station on three different
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corners of a possible four corner
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intersection three of them competing
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with each other occasionally a sign
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would go up that would say gas war if
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you’re old you remember gas Wars your
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local gas stations would compete with
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each other and one of them would drop
00:40
the price and all that everybody would
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go over there the other one will drop
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the price more and everybody would go
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over there and the other one drop the
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price more and they’d all go over there
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and these is competition in the
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marketplace without government
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intervention drove the prices down until
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the guys got tired of it and then they
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just kind of raised all the prices back
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up but we’d go through a period of time
01:00
that this head-to-head competition
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caused a gas war and it was competition
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and it was turned out to be good for us
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because we didn’t have a lot of money
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and we could put gas in our tank because
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it was cheaper well guess what Russia
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and the Middle East have decided to have
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an oil war not a war where they’re
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shooting each other but where they’re
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driving the price of oil down
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dramatically it’s dropped 33% over the
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weekend now you know those gas stations
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I was talking about when they dropped
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their prices everybody help me with this
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do they make more money or less money
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with lower prices they made less money
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okay everybody knows this right their
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profits went down didn’t it but they got
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customers and they got to stay in
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business by competing so guess what
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happens when the price of oil goes down
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two guys like Chevron and Exxon people
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like that their profits go down because
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the price of their barrel of oil went
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down that they’re sucking out of the
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ground
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you
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you know that means you’re about to get
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some cheap gas in the coming weeks for
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your car right people if oil drops 33%
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do you know I think it’s going to affect
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your dadgum get price at the pump yes it
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will okay because the gas war will are
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the oil war which gas has made out of
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oil will turn into a gas war at the pump
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around here it won’t have a little sign
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up that says gas war it’s probably
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politically incorrect you probably get
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put in jail but end of the day is you
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guys are gonna get some cheap gas
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because this is driven down now it’s is
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it you think it’s gonna stay down no no
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more than the gas war between the gas
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stations continued forever it’s not
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going to stay down and so Exxon is going
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to survive and Chevron is going to
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survive and BP is going to survive and
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Halliburton is going to survive
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everybody that all these oil stocks that
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are driven by profit in the oil business
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but guess what they’re part of the Dow
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Jones Industrial Average and when their
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profits go away to the tune of 33% over
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the weekend guess what their stock price
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does it goes down oh let’s mix that with
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all of you people have completely lost
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your mind
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over the coronavirus and everybody’s
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scared out of their brains and can’t
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even think clearly now oh and now we
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have a wonderful buying opportunity on
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the stock market today the stock market
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is tanked based on this oil war and the
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coronavirus now let me help you with
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this my friend art Laffer who is one of
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the leading economists in the world
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without a doubt has a great saying he
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says people don’t make good decisions
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when they’re drunk and they don’t make
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good decisions when they’re panicked if
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you’re thinking about pulling your money
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on the stock market because you think
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the coronavirus is going to destroy the
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US economy you are a panicked fool
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you’re a fool Southwest airs stock
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prices down 30% do you think Southwest
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air has lost 30% of its value because of
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the coronavirus in reality I mean learn
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to do a little basic math here that
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means that throughout the next five
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years there
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on their planes would have to be down
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30% for them to have permanently lost
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30% of their value that’s asinine you’re
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panicked or you’re drunk I don’t know
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which it is or both
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that’s ridiculous and so the stock
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market going down is as artificial as it
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can be it is based on drunk people panic
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people in an oil war and that’s what
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it’s based on this is the best buying
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opportunity in 10 or 15 years on the
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stock market today because these numbers
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are down artificially these companies
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have not lost all of this money they’ve
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not lost all of this value do you think
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Cruise Lines dropped 40% in value over
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the last 16 days come on I’m dumb are
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you okay listen here’s the deal
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40,000 people will die of car wrecks
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this year in the u.s. 14,000 people have
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died of the flu so far in the US and
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around 40,000 will die of the flu this
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year in the US 22 people have died of
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the corona virus and yet you cannot find
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a bottle of that hand-washing stuff
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anywhere in any store in America today
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you would think the stuff was gold if
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you got a case of it you ought to put it
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on eBay overnight because some panicked
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fool will pay you $8,000 an ounce for
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that stuff in it people have lost their
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minds if you lost their minds and I
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don’t want the corona virus and I don’t
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want you to die the corona virus and I
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don’t want you to die the flu I don’t
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want you to die in a car wreck I don’t
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want anybody die I want everybody to
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live have a good life I’m here for you
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but you’re sacrificing your entire
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freaking retirement because you’re
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panicked because you watch too much news
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you need to turn off the news you need
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turn off let me tell you the level of
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anxiety you have is directly tied to the
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number of hours a day you spend watching
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news if you just turn it off and open up
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your Bible my friend Zig Ziglar
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say I read the newspaper every morning
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and I read the Bible every morning so I
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can tell what both sides are doing and
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you know I tell you what you’re just
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gonna have to think people when you’re
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drunk and when you’re panicked you don’t
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make good decisions usually as soon as I
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get really really scared right after
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that I get really really desperate and I
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get riot right after that really really
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stupid and cashing out your retirement
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account or stopping your investing or
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bailing on your 401k because you’ve
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watched too much news is absolutely
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asinine do not do that as a matter of
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fact if you’ve got some extra money it’s
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a good week to put some money in I don’t
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believe in market timing I don’t have a
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single dollar allocated in my personal
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budget for timing the market so all of
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my purchases of mutual funds are on
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autopilot they just go when they go but
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I’m kind of regretting that right this
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second because man I could turn a
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million dollars into two million so fast
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right now thank you to Russia and thank
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you to the Middle East for driving the
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oil prices down because I’m gonna get a
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cheap tank of gas from my big butt
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Raptor pretty soon out of you people and
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I’m gonna grin all the way to the bank
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when this stock market comes right
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straight back up and the rest of your
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standing on the sidelines going I lost
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half my retirement because you panicked

Forbes’s version of “one big idea” is a flat tax and a sound dollar linked to gold. If we have that, we’ll be the “land of opportunity again.”

Laffer agreed. “Our economic verities have remained forever,” he said. “They go back to caveman, pre-cavemen. Incentives matter: If you reward an activity, then people do more of it. If you punish an activity, people do less of it.”

.. But for the tax side of “one big idea,” Laffer would like to see corporate tax reform.

.. Forbes, who can see income-tax reform following corporate-tax reform. “Even if we get to this two years down the road,” he said, “I think [Trump would] be amenable to doing something radical like a flat tax.”

.. “Let me put it just succinctly,” answered Laffer. “These people are willing to rebut arguments they know to be true in order to curry favors with their political benefactors.”

.. Forbes added: “A lot of these far-left ideologues would rather have a smaller economy and more government power than a bigger economy and a smaller government.”

.. Where, I asked, does trade protectionism — including tariffs on China — fit into the low-tax-rate, strong-dollar prosperity model?

.. Forbes, who offered an alternative: “The smart approach is get this economy moving through. . . tax cuts and deregulation. And then having a stable dollar . . . you sit down country by country and remove trade barriers.” Anything but the trade protectionism that blew up the stock market in 1929.

.. To which Laffer added the great line: “Don’t just stand there, undo something!” “Cut taxes, stabilize the dollar, reduce tariffs, reduce regulation,” he said. “Undo, undo, undo — and undo the damages these other guys have done.”