Reich at Home: Why Trump’s Plan to Open the Economy will be Lethal

Former Labor Secretary Robert Reich is discussing how Trump is selling out Americans’ health to boost his election chances and give his GOP donors short-term stock gains. 2,909 Americans died from the virus on Thursday, the highest single day total since the pandemic began.‬ Only 6.5 million of 200 million adult Americans have been tested.‬

Any rush to reopen without adequate testing and tracing – far more than now under way – will cause a resurgence of the disease and another, longer economic crisis. Trump couldn’t care less.

Steve Eisman: “They mistook leverage for genius”


Steve Eisman: Quantitative Easing was a failure: it didn’t get corporations to borrow and invest. Rather, they borrowed and bought up their own stock.

 


Steve Eisman: Inequality was cause of Financial Crisis (10:17)

 

Steve Eisman: They made money because of their leverage (debt ratio) and they mistook their leverage for genius (12:19)

 

Steve Eisman was one of the few who predicted the 2008 financial crisis, and he made his name by foreseeing the collapse of subprime mortgage market.

Michael Lewis portrays him as one of the heroes in the bestselling book The Big Short and Steve Carrell plays an outspoken version of him in the Oscar-winning movie of the same name.

EFN:s Katrine Marçal meets Steve Eisman at Claridges hotel in London.


Transcript

00:00
they’re all getting screwed you know you
00:03
know if they care about they care about
00:04
the ballgame or they care about what
00:06
actresses went into rehab I think you
00:08
should try medication no no we agreed if
00:12
it interferes with work you hate Wall
00:14
Street maybe it’s time to quit I love my
00:15
job you hate your job I love my job
00:18
you’re miserable I love my job I love my
00:21
job honey
00:22
mark Steve Iseman welcome to the offense
00:25
I’m glad to be here so you’ve been
00:27
portrayed in a book and in a film what
00:30
did you prefer I would say they were
both fairly accurate as the way I was
back then and let’s just leave it at
00:38
that okay okay so I’ve heard that some
00:42
Brad Pitt’s almost caladium in the film
00:44
it’s not true I got a phone call from
00:47
Adam McKay who was the author director
00:50
of the movie in November of 2015 to say
00:58
that he was writing the movie and that
01:02
there was a possibility that Brad Pitt
01:04
would play me to which I responded that
01:08
the only thing Brad Pitt and I have in
01:10
common is that we both have really good
01:11
hair okay
01:13
so being one a few people who sold the
01:16
financial crash coming how did it feel
01:18
to have see this big disaster unfold and
01:20
not being able to do anything about it
01:23
the analogy I use it’s a little bit like
Noah in the ark yeah so you know Noah’s
on the ark he’s okay and that he saved
his family but he’s not exactly happy
hearing everybody screaming outside
01:38
that’s was sort of my experience all
01:41
right did you think the financial market
01:44
potential market from the financial
01:46
sector would get back get back to
01:47
business and get back to some kind of
01:49
normal as quickly as it did no I didn’t
01:51
expect it would it would happen that
01:53
quickly you know a lot of that was the
01:57
fact that the government backstop the
01:59
system and once the become a backstop
02:01
the system it was what the financial
02:04
markets did come back but the banking
02:05
system has been changed so in the book
02:08
and the film it becomes very clear that
02:09
you’re you betting against the subprime
02:11
mortgage market is not
02:13
just a trade but it’s kind of a moral
02:15
crusade are you still on this moral
02:17
crusade I’m not because a lot has
02:20
changed
02:22
you know dodd-frank I think really fixed
02:25
a lot of things leverage has come down
02:27
enormous ly the Consumer Financial
02:29
Protection Board has been put in place
02:31
to protect consumers I the world’s very
02:33
different from what it was pre-crisis
02:35
hmm but now many of these things are
02:38
threatening I mean Donald Trump has
02:39
promised to repeal vast parts of the
02:41
dodd-frank act for example it’s not
02:44
something I’m in favor of I think that
02:46
will be a big fight you know it’s
02:48
possible the industry is going to get
02:50
deregulated to a degree we’re not going
02:52
to go back to what we where it was so
02:54
for example you know Citigroup used to
02:56
be levered 35 to 1 today its levered 10
03:00
to 1 I feel if we go into some type of
03:03
deregulation maybe you get 2 to 3 turns
03:05
more leverage it’s not something that
03:07
I’m personally in favor of but I don’t
03:08
think it’s a calamity hmm so do you
03:11
think with Donald Trump be president
03:14
today if more than one banker had gone
03:17
to jail for the financial crisis it’s an
03:19
excellent question and the answer is I
03:22
don’t know you know I don’t know
03:24
I’m cold about it I’ve thought about it
03:26
a lot
03:27
I think there’s a definite very strong
03:30
sentiment that it was wrong that nobody
03:34
went to jail I’m not going to say if
03:36
that sentiment is right or not but
03:39
there’s definitely a very strong
03:40
sentiment in the country that that’s the
03:41
case and I think people are very angry
03:44
that nobody did go to jail again I’m not
03:46
going to say whether that’s right or
03:48
wrong and if people had gone to jail I
03:50
think that would have soothed some of
03:52
the hangar that was seen in the election
03:55
so it’s possible that impact of the
03:57
election but it’s impossible it’s
03:58
impossible to say right so now taxes are
04:01
going to be can’t and Finance regulators
04:03
because the populace to campaign against
04:05
Wall Street 1 correct correct okay so
04:09
what do you do with investment then I
04:11
hear you you are investing quite a lot
04:13
in bank stocks well I mean there’s
04:15
there’s two issues there’s what I think
04:18
about finance the financial system and
04:20
what I think about financial stocks and
04:24
the two don’t necessarily
04:26
correlate so with respect to the
04:28
financial system I think that what’s
04:31
been done has been a good thing but it’s
04:34
been very intense bank the dodd-frank
04:36
act and the Fed forcing people to
04:39
de-lever to de-risk etc so from a
04:43
financial system I’m very happy I could
04:47
say very strongly the United States
financial system has never been held
this healthy in my lifetime but it’s
been very painful for financial stocks
because as you de-lever and do risk you
make less money and therefore it hurts
your stock price so the last six years
05:08
or so have been extremely painful for
05:10
financial stocks especially banks as
05:13
they’ve de-levered and dearest well if
05:16
we’re going to go into world where we’re
05:17
going to deregulate and leverage is
05:19
going to go up at least some just
05:22
reverse the story
05:23
so therefore financial stocks should do
05:25
well right okay
05:27
like I said financial system financial
05:30
stocks but you are not necessarily the
05:32
same an interest rates in America are
05:34
going up yes that’s very good for banks
05:37
all right
05:37
so America is kind of moving from a
05:39
monetary stimulus to a fiscal stimulus
05:41
with something but it’s like that’s
05:43
something I’m in favor of yes I think
05:45
it’s a good thing the infrastructure
05:46
investment yeah that’s right until not
05:48
believe that quantitative easing is a
05:52
successful strategy why not there are
05:55
too many negative impacts for from it to
06:00
I mean look it was a noble experiment
06:02
there was no fiscal expansion there was
06:04
no other game in town so I don’t blame
06:06
the Fed for doing it the idea was that
lowering rates would cause people to go
up or out on the risk curve and vest in
the economy and really the other thing
happened was they went out on the risk
curve by buying back their own stock
they didn’t really invest in the economy
06:22
and with lower rates that hurts consumer
06:25
because they makes us money we pay the
06:26
money in the bank so I haven’t you know
06:30
when we started the monetary policy of
06:33
quantitative easing
06:34
us growth was one-and-a-half to two
06:38
percent and after we did it it’s one and
06:41
a half to two percent so in my view
quantitative easing is a failure
06:45
alright so in November you said to the
06:48
Guardian in Europe but Europe is screwed
06:50
you guys are still screwed referring to
06:53
their non-performing loans in the
06:54
Italian depends of the country yes
06:56
are we in Europe still screwed well my
07:00
wife wish I hadn’t said that
07:01
yes so okay oh we in big trouble not big
07:07
it depends on the country you know Italy
07:10
has a very large non-performing loan
07:11
problem I don’t see the Italian
07:14
government doing anything to really
07:16
solve that problem if they like before
07:18
Christmas that was a nasty suppose that
07:20
was just monte de Paz yeah and you never
07:22
like to say monte de Partie because it’s
07:24
such a great name and the world’s oldest
07:27
bank as the world’s oldest bank correct
07:29
and I don’t you know you could try and
07:31
Simmel to deposit ten times fast it’s
07:33
very hard but it’s not really solving
07:37
the problem I mean this is something
07:39
called a Texas ratio which is a ratio
07:42
that bank analyst Achon myself compute
07:45
which is non-performing loans divided by
07:49
tangible book value plus reserves
07:52
basically the numerators all the bad
07:54
stuff divided by the money you have to
07:57
pay for the bad stuff and one of the
08:00
great lessons about bank analysis is
08:03
that one in Texas ratio gets over a
08:05
hundred percent the bank is done and in
08:08
Italy the two largest banks are in paisa
08:11
and you credit and their Texas ratios
08:15
are at ninety percent and every other
08:17
Bank in Italy is over 100 percent so I
08:21
don’t envy Italy the problem ok famous
08:24
ahma is the country there’s the bigger
08:26
than I think it won’t come and I think
08:28
the problem with the banks generally in
08:30
Europe is that they are still under
08:33
capitalized and they they are they do
08:37
not make enough money per dollar
08:39
employed basically European banks don’t
charge enough for this
services they never have and they’ve
tried to make up the difference with
leverage and in a world where you have
to use less leverage that model doesn’t
work
what about Deutsche Bank quite the same
well don’t you make sort of the poster
child for that let’s think about this
09:01
this way so today if a bank has a 1%
09:08
return on asset and is loved or ten to
09:12
one the return on equity is 10% that’s
09:15
the simple formula so you know Citigroup
09:19
for example doesn’t even have a 1% ROA
09:23
but they’re not that far off but
09:27
Deutsche Bank today has a 30 basis point
09:29
ROA they need to improve their
09:31
profitability by more than three times
09:34
there’s no way Georgia Bank on its own
09:37
can improve its profitability three
09:39
times the entire European banking system
09:41
has to be price you know how that’s
09:44
going to ever happen I don’t know but
09:46
until it does your paint banks it could
09:48
be a problem
09:49
they’re going to be a problem so you’ve
09:50
been in here in London for a few hours
09:52
now and you must have realized already
09:54
that the only thing people talk about
09:55
here with breakfast yes
09:57
so what financial risks do you see
09:59
coming from brexit big question is a big
10:04
question
10:04
okay what will happen in March I have no
10:07
idea you have no I really have no idea
10:08
honestly I don’t think and more
10:11
importantly anybody else has any idea
10:12
that it’s going to be an adventure a not
10:15
so it’s going to be a fun adventure but
10:17
it’s going to be an adventure so you
10:18
said that we’re very bad at dealing with
10:20
crises that develop very slowly and you
put the blame on the big financial
crisis of 2007-2008 on income
distribution really do you see that
10:32
changing at all I mean let me explain
10:35
that yes because it’s not intuitively
10:39
obvious how the two are connected so you
10:42
know my thesis is that one of the
underlying causes of the financial
crisis it was bad income distribution so
you know when I say that people’s eyes
generally clays are like you know what
are you talking about
but I think that there’s a
cause-and-effect relationship in that
you know starting in the 90s when income
distribution started to get really poor
in the United States rather than focus
on that and what the solutions worth of
that problem let credit get democratized
that was the euphemism for will will
make loans to people that we didn’t make
loans to before so rather than get
people’s incomes up they let them lever
themselves [take out more debt] and one of the ways people
lever themselves was by taking out loans
on their homes and loving themselves
that way and so I think one of the
causes of the subprime mortgage crisis
is that you know post dodd-frank hard to
get a mortgage loan yeah you know
incomes have only started to start
growing again we’ll have to see what it
does the new administration can do
anything hmm
so it don’t Frank it’s harder to get a
loan but well it’s hard to get a
mortgage why although I don’t think that
I caused a defect of dodd-frank I think
it’s more of an effect of all the fines
that were imposed on the banks for the
mortgage crisis and so the banks I think
not unjustifiably are kind of worried
12:11
about making mortgage loans that they
12:14
might they might not should or should
12:16
not make so the financial crisis what he
12:19
said the main problem was the products
12:22
the tools available or the culture ah I
would say is one of the unsung aspects
of the financial crisis that people have
definitely not written that up about
which is psychology yes and what I mean
by psychology is you have an entire
generation of Wall Street executives who
grew up in the 90s in the early aughts
who really only had one experience which
is they made more money every single
year now what they didn’t really notice
was that as they were making more money
every single year the leverage of their
various institutions was increasing
every single year
now they thought they were making more
money because it was them but really
what was happening as they were making
more money because their institution was
becoming more levered and really what
happened was they mistook leverage for
genius
I wrote that sentence by the way I read
that I do it’s a good son it’s a good
sentence I don’t write a lot of good
sentences but that’s definitely one of
them tweetable yes it’s very good right
if I tweeted I would tweet listen I am
so let’s imagine you went to a Wall
Street executive in circa 2006 and you
said to the CEO of you know pick the
name of your institution and you’d say
dude listen the entire paradigm of your
career is wrong you have to de-lever so
did you ever have a conversation like
that I did I’ve never told this story
before there’s like AI now it can be
told story okay um so the day is
February 2008 and I have a meeting with
the head of Risk Management and one of
the big Wall Street firms we won’t name
them anyone else today but it wouldn’t
matter because I would have had the same
it would have been the same conversation
with any of them
given what was discussion one so I sit
down with a head of risk management of
one of the big farms it’s one month
before Bear Stearns almost to the day
and I say to him you have got to de-lever
and you’ve got to de-lever now because
Armageddon is coming the point of it is
the direct that’s almost a direct quote
I used the word Armageddon and he looks
at me and he says you know I hear what
you’re saying but you know we at X we
can be much more levered to the bank now
back then there was a bank based in
Detroit called net city it was a
medium-sized regional bank and it had a
lot of subprime mortgages so it was a
bit of the topic of the day and so I
said to him you know do you know what
happens if knacks City goes down and he
says no what happens I said nothing the
regulator’s come in they seize the bank
they pay off the depositors they fix the
bank they sell the bank the government
takes something of a loss end of story
do you know what happens if your firm
goes down planet earth burns who should
be more levered and he looked at me like
I was speaking ancient Greek like he
just it was so outside his paradigm it’s
like he didn’t know I was talking about
and I realized it was over that there
was no way these guys were going to do
what needed to be done before the world
blew up but I think we’re going to see
someone to go to jail right
I mean you can have to break up the bank
partido I don’t know I don’t know I have
a feeling in a few years people are
going to be doing what they always do in
the economy tanks they would be blaming
immigrants and poor people it’s not X
equate from you is that Hollywood’s a
great quote it’s a great mark it’s not
yellow it was written by Adam McKay with
the author and director and but did you
16:26
think in those terms back then oh I
16:28
always think in those times always
16:30
thinks in terms of disaster yes why is
16:33
that just I have a very strange DNA do
16:39
you see this paradigm changing at all
16:40
this culture I was told check it steady
16:42
change they’ve been beaten to a pulp
16:44
yeah
16:45
you know the dodd-frank gave much more
16:49
power to the Fed to regulate the banks
16:53
that power was put in the hand of
16:56
Governor Daniel Tarullo and I think he’s
17:00
done a tremendous job of de-levering the
17:03
banks in the United States you know I
17:05
would say the CEOs of the bank’s fought
17:09
him kicking and screaming but I’d say in
17:12
the last year or two they gave up and I
17:15
know you said before that Europe’s done
17:18
not as good of a job with that that’s
17:21
correct why well it’s what your starting
17:25
point so you know just pre-crisis
17:29
Citigroup is levered thirty five to one
17:31
deutsche bank is lowered over 50 to one
17:35
so today’s Citigroup is levered ten to
17:37
one and deutsche bank depending on how
17:40
you calculate is probably levered twenty
17:41
five to one so everybody’s leverage is
17:44
lower European banks have always been
17:48
much more levered than US banks so
17:51
they’re still more levered they just
17:53
left levered than they were right not
17:57
they’re not de-levered enough to my taste
17:59
yes
18:00
but that again we gets back to the Paula
18:03
Mills they’re not profitable enough per
18:05
dollar employed so the regulator’s in
18:08
Europe let them be more levered I think
18:10
it’s a mistake but that’s the way the
18:12
systems it works okay and everyone’s
18:16
asking you what the next one of the
18:17
crisis is going to be so I don’t have a
18:19
dick I know I’m not going to ask you
18:20
money I will ask you that question I say
18:25
you know everybody’s trying to pick the
18:28
next big short and I’ve done that
18:30
already I’m in no rush
18:31
okay thanks a lot Steve Eisman thank you

State of Maryland protected Covid Tests with National Guard

00:07
we’re all thinking about our hands and
00:12
right now we’ll need them more than ever
00:16
America’s factories power plants
00:19
government military data transportation
00:24
water waste national security hospitals
00:29
are all fighting they need people on the
00:33
ground to keep them functioning which is
00:37
why we are working hands on around the
00:39
clock
00:40
supporting the larger efforts in every
00:42
state and county because our technology
00:45
is only as powerful as the people
00:47
deploying and maintaining it keeping
00:52
America moving takes more than
00:55
technology alone it takes a human touch
01:01
[Music]
01:12
[Music]
01:25
[Music]
01:28
we’re watching certain metrics and
01:31
looking at a pattern of numbers before
01:33
we make any kind of decisions everything
01:36
is going to be based on the numbers and
01:37
the science we’re not going to do
01:39
anything that’s that’s going to put
01:41
anybody in in more danger
01:44
[Music]
01:52
welcome to Washington Post live I’m Bob
01:54
Costas an a tional political reporter at
01:57
The Washington Post this morning we
01:59
continue our leadership during crisis
02:02
series as the corona virus pandemic up
02:05
ends all aspects of American life our
02:08
guest today is a state executive on the
02:11
frontlines Larry Hogan Maryland’s
02:13
Republican governor he is chairman of
02:15
the National Governors Association
02:18
governor Hogan welcome good morning Bob
02:20
thanks for having me
02:21
good morning so governor what is the
02:24
latest in Maryland in terms of cases and
02:27
the death toll well so we were still
02:31
kind of climbing that curve in Maryland
02:34
we were a couple of weeks behind some of
02:36
the other states because of some of the
02:37
early and aggressive action we took we
02:40
just surpassed 21,000 cases and sadly we
02:44
just went over a thousand deaths here in
02:46
the state but we’re we’re certainly in a
02:50
much better position than we would have
02:52
been we not taking aggressive action so
02:55
you’re in a much better position but are
02:57
you ready to set a date about reopening
02:59
your state so we laid out a very
03:02
detailed plan just last week and we’ve
03:05
had a coronavirus response team made up
03:08
of some of the smartest scientists and
03:11
epidemiologists and public health
03:13
officials in our state from places like
03:15
Johns Hopkins and some of the leaders of
03:17
this pandemic response really nationally
03:20
advising us we developed a plan that
03:23
took into consideration the president’s
03:26
own corrupt coronavirus plan the mga
03:28
plan that we put out the week before for
03:31
the recommendations for all the
03:33
governor’s along with some Hopkins
03:35
reopening plan and the American
03:37
Enterprise Institute plan put together
03:38
by dr. Scott Godley who was the former
03:42
FDA commissioner and our plan is as soon
03:45
as we see a flattening or a plateauing
03:47
of these key numbers like
03:49
hospitalizations and ICU bets or the
03:51
things that we’re really focused on the
03:54
number of cases is going to rise as we
03:56
do more testing and so and and sadly the
04:00
deaths lag a couple of weeks behind
04:02
what’s actually happening now and so the
04:05
numbers that
04:06
most closely following on a daily basis
04:08
our hospitalizations in ICU beds and
04:11
we’re not seeing as much of a spike
04:13
we’ve got a couple of days up a little
04:15
bit but it’s a it seems to be leveling
04:18
out which is a good sign it seems to be
04:21
leveling out so you’re still in a
04:22
wait-and-see period about those metrics
04:24
we’re looking at those metrics and we
04:28
wanted to make sure that we before kind
04:30
of key building blocks that we wanted to
04:32
have in place we want to make sure we
04:34
had robust testing which we have ramped
04:36
up dramatically we want to make sure we
04:38
can do contact tracing we have a enough
04:42
of a supply of PPE which has been a
04:45
difficult thing for most of the states
04:47
to deal with and we’re constantly
04:49
bringing in more and more supplies to
04:51
support our hospitals and and then you
04:54
know the last thing we’re dealing with
04:55
is hospital surge and we’ve added six
04:57
thousand beds to our hospital capacity
04:59
and have been acquiring ventilators to
05:01
make sure that we can be prepared so
05:04
those things in place we have a phased
05:06
plan to start implementing just as soon
05:10
as we can because we’re anxious to get
05:12
our economy back on track and put people
05:14
back to work but we want to make sure we
05:16
do so in a safe effective and gradual
05:19
way let’s talk about the supplies you
05:22
just mentioned last week it was big news
05:25
Marilyn bought 500,000 tests from South
05:28
Korea but you saw the Washington Post
05:31
this morning they have not been used yet
05:33
what’s the holdup well I announced when
05:36
we acquired the test a little over a
05:38
week ago it was a it was a huge
05:41
accomplishment it’s like this more than
05:43
a month after the president said the
05:46
states were kind of on their own and had
05:47
to go out and get their own testing we
05:49
searched all over the country to find
05:51
tests and we finally through some
05:53
international diplomacy we were able to
05:55
get this half a million tests in from
05:57
Korea at the time when that plane landed
06:00
that half a million tests was more than
06:02
the all of the testing added together
06:04
for four out of the top five states in
06:07
America it was quite a step but when I
06:09
announced it 10 days ago I said it was
06:11
still only a part of the puzzle because
06:13
we still needed swabs and reagents there
06:16
are about nine different steps in this
06:18
that was a big chunk of it the rest of
06:20
it we’re continuing to work on and prove
06:22
on but the story really wasn’t you know
06:24
I hate to take a shot at the Washington
06:26
Post but it really wasn’t that accurate
06:28
of a story because we are utilizing the
06:30
tests we have thousands of them that are
06:32
being deployed but we have to ramp up
06:34
our lab capacity which we’ve been
06:35
working with the federal government on
06:36
trying to get some assistance on there
06:38
had been a shortage of lab of swabs all
06:41
across the country which the president
06:43
just instituted the defense production
06:45
act on all of these things are part of
06:47
being able to deploy those half-million
06:49
tests but we have a poultry outbreak on
06:52
the Eastern Shore we have thousands of
06:53
those tests over there now and produce
06:55
stadium in Salisbury we’re putting them
06:57
out in our we put out a report yesterday
06:58
that we’re going to do mandatory testing
07:00
of every single patient in every single
07:02
nursing home first state in America in
07:04
America to do that and we’re doing that
07:06
with those Korean tests that we’re just
07:08
talking about to the point about the
07:10
Washington Post story I’ve heard from
07:12
Governor Pritzker of Illinois for
07:13
example a similar point that you just
07:15
made that it’s not just enough to have
07:17
the test you have to have the supplies
07:19
that go along with the test when are you
07:21
going to feel comfortable that Marilyn
07:23
has those supplies to use the tests you
07:25
got from South Korea well so we’re using
07:28
as many of them as we can and as the
07:30
additional supplies come in we’re
07:32
utilizing more of them but when we when
07:34
we acquired the test we said that was
07:36
helping us on a long-term strategy so we
07:38
always intended this to be over several
07:39
months that we would utilize those
07:42
half-million tests not in the first week
07:44
that we acquired them so but where it
07:46
all depends on the ability of to get the
07:49
swabs the reagents all of the steps in
07:52
the process and the lab capacity so you
07:54
know we’ve got private labs involved
07:55
that have to get it ramped up we’ve got
07:58
the University of Maryland where we
07:59
invested in robotics just so that they
08:01
can produce 20,000 tests per week which
08:04
is a major improvement we’ve been
08:07
getting reagents we were able to ramp up
08:09
I think you know 40,000 more tests as
08:12
about a week or so ago and swabs
08:14
continues to be a problem but it seems
08:16
like and that is something that the
08:17
federal government is helping with and
08:18
hopefully we’re gonna get more supplies
08:20
in but right now we’re using all we can
08:22
possibly use and we’re hoping to be able
08:24
to keep up with demand as we need them
you say the federal government you want
it to be a partner with Maryland
but based on my own reporting you had
some concerns about whether the feds
would cease these tests when you brought
them over from South Korea is that true
were you concerned that the federal
government would try to take those tests
out of your hands was a little bit of a
concern about trying to get these things
and it was a very complicated process
you know we we spent about 22 days and
nights dealing with this whole
transaction with Korea dealt with the
Korean embassy and folks at the State
Department in Korea eight different
state agencies and our scientists on
both sides trying to you know figure out
these tests and that at the last moment
I think 24 hours before we got sign-off
from the FDA and border and customs to
try to make sure that we landed this
plane safely we made sure it landed at
BWI Airport instead of Dulles so the
first time a Korean Air passenger plane
has ever landed at Baltimore Washington
International Airport we landed it there
with a large contingent of Maryland
National Guard and Maryland State Police
because this was an enormous ly valuable
payload it was like it was like Fort
Knox to us because gonna save the lives
of thousands of our citizens and there
had been reports of for example in
Massachusetts governor Charlie Baker
told the story of his plane load that
came in with with masks was basically
confiscated by the federal government

and he had to then get Robert Kraft the
owner of the Patriots to fly a second
mission with a private plane to try to
bring some of that equipment in for a
couple of other states that had similar
stories
so we were just making sure that
that was so important to us that we
wanted to make sure that that plane took
off from Korea safely landed here in
America safely and that we guarded that
cargo from whoever might interfere with
the US getting that to our folks that
needed it the national guard protecting
test is the National Guard in Maryland
still protecting those tests they are
the National Guard and the State Police
are both guarding these tests at an
undisclosed location these things are
being distributed they’re helping us
distribute the test they’re also helping
in all kinds of other humanitarian
we have about 1,300 members of the
Maryland National Guard who have been
activated another 800 that are kind of
on standby ready for activation within
an eight-hour period but they were just
tremendous they’re helping us distribute
supplies and PPE helping us with the
distribution of those tests they’re
helping provide meals for hungry kids I
mean they’ve just done an incredible job
and we were utilizing them these are
citizen soldiers that are really
stepping up to help their says there’s
fellow citizens in need are we seeing in
Maryland a racial disparity in access to
testing generally not access to testing
in fact we’re actually most of our tests
are deployed in our high population
areas which also happen to be more
racially diverse so we’re doing more
testing in the areas with higher
11:29
concentrations of minorities but we’re
11:31
also there is a disparity in I mean
11:33
there’s no question that that minorities
11:36
are more impact they didn’t have a
11:38
higher percentage of people that are
11:40
that are both getting the virus and
11:44
dying from the virus and so it has to do
11:46
with you know our population centers and
11:49
in in the inner Beltway and the
11:51
Washington suburbs and in Baltimore City
11:53
where we have highly dense populations
11:56
and people that are you know riding
11:57
public transportation or working and
12:00
living in closed environments and
12:01
there’s definitely there we published
12:04
all the racial data which does show that
12:07
that minorities are more impacted by the
12:11
virus but we’ve spent more time more
12:13
resources and done more testing and put
12:16
more of a focus on those areas than
12:17
anywhere else people in minority
12:20
communities people across Maryland
12:23
they’re also struggling not only with
12:24
access to testing but access to
12:26
unemployment benefits and you’ve
12:28
apologized acknowledged problems in that
12:30
effort the beacon portal so what are you
12:32
doing right now today to speed up access
12:35
to debit cards and checks well so this
12:39
has just been an enormous first of all
12:41
my heart goes out to all the people that
12:43
are struggling and suffering there’s so
12:45
many so much unemployment I think
12:46
nationally as of today you know 30
12:49
million people filing for unemployment
12:51
some of these benefits are brand-new
12:53
I want to thank the federal government
12:55
and Congress and everybody for moving so
12:57
quickly to add these additional benefits
12:59
folks that are not w-2 employees but gig
13:02
workers and 1099 none of the websites
13:05
could handle these types of these new
13:08
types of benefits number one and the
13:11
volume was so unprecedented we had in a
13:13
five-day period something like 250,000
13:18
people try to file which was more than
13:20
the entire year of 2019 we created a
13:23
brand-new website for this brand-new
13:25
program to try to handle that and we
13:28
were one of the first in the country to
13:29
do so in many places they aren’t even
13:31
able to provide the benefit so you can’t
13:33
get through on a phone a couple of
13:34
states their entire system crashed and
13:37
it’s been down for days ours has
13:39
continued to run and we’ve been able to
13:40
help a couple of hundred thousand people
13:42
but it’s frustrating to me that some
13:44
people were waiting way too long and the
13:46
system was not able to help handle the
13:48
speed so I you know I said look this
13:52
it’s unacceptable as the governor of the
13:54
state I you know I have higher standards
13:57
of that and I’ve been demanding from the
13:59
contractors that are developed aside
14:01
from our all of our state workers we’ve
14:03
brought in hundreds of people to try to
14:04
fix it working around the clock 24 hours
14:06
a day as of this morning it’s working
14:08
and functioning much better you have
14:11
about a three minute wait rather than
14:13
waiting for hours but we expect that
14:15
volume when people start filing if the
14:17
file every week so Sunday and Monday the
14:19
massive volumes are gonna come in again
14:21
we’re hoping it’s gonna work much better
14:22
but it’s a difficult every state in
14:24
America is having difficulties
14:26
processing the massive volume and we’re
14:28
trying to get people every penny of the
14:31
money that they deserve and that they
14:32
desperately need as quickly as we can
14:35
speaking of speed another tragedy in
14:38
your state in other states
14:40
nursing homes and you’ve now mandated
14:42
testing for residents staff at nursing
14:45
homes the question is though how soon
14:48
can that be done
14:50
so the nursing homes as you know if you
14:52
remember Bob when we first started
14:55
hearing about this in America was that
14:56
focus in Washington state of Washington
14:59
with that nursing home and I remember
15:01
vividly seeing those those images it’s
15:05
been probably the biggest problem that
15:08
every state has had nursing homes
15:10
because we have that’s our most
15:12
vulnerable population and they’re in
15:15
such a vulnerable position so what when
15:18
the the very first day of our crisis
15:19
they we got our first case in Maryland I
15:23
called in all of the long-term care
15:25
facility operators the nursing homes the
15:27
assisted living all of these folks and
15:29
weeks we brought them in we took really
15:32
aggressive action on day one to lay out
15:35
protocols we didn’t know we cut down
15:37
access so there were no visitors allowed
15:38
this was fifty fifty two days ago we we
15:42
said that staff had to be checked
15:44
temperature checks as they came and went
15:46
no travel for your staff but all kinds
15:49
of protocols we put in place together
15:51
with the industry in spite of all those
15:53
things a symptomatic staff who didn’t
15:58
have a temperature didn’t show any signs
15:59
of anything and there were no visitors
16:01
coming a symptomatic staff would would
16:04
come to work with the virus unknowingly
16:06
and it just went through these nursing
16:09
homes like wildfire we now have over
16:11
4,000 cases in our nursing homes we have
16:15
we have about 130 some nursing home
16:18
centers with outbreaks or clusters and
16:20
sadly 46 percent of all of our deaths
16:23
our nursing home patients so we’ve taken
16:25
further steps to now not wait until
16:28
somebody’s showing signs of symptoms and
16:33
and but we’re testing every single staff
16:36
member and every single patient in all
16:39
those there’s 24,000 of them in our
16:41
state so it takes a while to get it done
16:43
we’re prioritize just started yesterday
16:45
this new program we’re with our new
16:48
tests from Korea but we’re prioritizing
16:50
the ones where we have the outbreaks and
16:52
where we have threats of potential
16:54
clusters where we’ve got a case where we
16:57
already have somebody that tested
16:58
positive and we’re gonna work our way
17:00
down that list until we get to every
17:02
single
17:03
those folks what about prisons should
17:06
testing be mandated there as well we are
17:09
where we’ve taken all kinds of steps to
17:11
reduce our prison population we’ve set
17:13
up triage centers we’ve set up isolation
17:16
sections in the hospitals and we’re
17:18
doing testing of hospital staff that’s
17:20
one of our top priorities and that’s
17:22
included in our kind of clusters and
17:24
hotspots where we’re focusing some of
17:26
these tests first so it’s things like
17:28
prisons it’s things like nursing homes
17:31
also on health care workers they’re
17:35
gonna get prioritized for tests and then
17:37
this issue like I talked about today we
17:39
have a big poultry industry on our
17:40
Maryland’s Eastern Shore we have a major
17:42
outbreak there and interruption of the
17:44
food chain so we’re we’re setting up
17:46
this new thing there for the for the
17:48
workers in the poultry industry at
17:49
Perdue at the Perdue plant and at
17:52
Purdue’s Stadium in Salisbury let’s
17:54
pause on that food issue we got an email
17:57
from one of our readers of the post Milo
17:59
Williams from Maryland she said quote I
18:01
heard there’s no risk to Maryland’s food
18:03
supply train but grocery stores are
18:05
still out of stock of many items I
18:07
switch to having my groceries delivered
18:08
but a lot of times my delivery is not
18:11
arriving because things are out of stock
18:12
what’s being done yeah I think that’s
18:16
there there is no interruption in the
18:18
food chain and that’s not sort of
18:20
unrelated to what I we do have a concern
18:23
with this poultry industry issue that
18:26
same you’ve heard about it nationally
18:27
with pork producers and beef producers
18:29
and now poultry producers to make sure
18:31
there’s no interruption in that food
18:33
chain which is a big national issue here
18:35
locally we’re concerned about the
18:37
workers and the spreading this into the
18:39
community and about our poultry farmers
18:41
and what it does to our economy on the
18:43
this issue that your your reader is
18:47
asking about the stocks not being filled
18:51
that’s a problem that’s we’re continuing
18:53
to try to work with all of these supply
18:56
chain folks to make sure they keep being
18:58
filled some of it is a problems with
19:02
distribution but some of it is simply
19:04
people rushing out and and hoarding
19:06
because of concern about things running
19:08
out so they’re buying too much and
19:10
clearing out their shelves and but it’s
19:13
an issue that we continue to work with
19:14
all the stores in the supply
19:16
to try to improve upon to make sure that
19:19
this shelves remain stocked but there if
19:21
there isn’t a concern so people should
19:23
just buy what they need and not be you
19:26
know wiping out the shelves and taking
19:28
everything we just have a couple more
19:30
minutes here Governor Hogan so maybe for
19:33
some brief answers one we got a note
19:35
from Steve Larson from Maryland will the
19:37
beaches be open in Ocean City this
19:39
summer I know that the Ocean City mayor
19:43
and city council have been meeting and
19:45
talking about this it’s really it’s
19:47
really too early to tell I think there
19:49
probably will be some hope for some kind
19:52
of a season in Ocean City but whether
19:53
it’ll be normal that’s a big question
19:55
about how they’re gonna go about opening
19:57
opening opening beaches in a safe way
20:00
what would you mandate face coverings
20:03
masks during a reopening of Maryland is
20:06
certainly it depends on that’s one of
20:08
the things that our plan and visions
20:10
were working with industry sectors
20:12
depending on what the work is and how
20:15
closely their affiliates certain and
20:16
certainly in some places you are gonna
20:18
have to wear masks until we find a
20:20
vaccine or a cure homelessness is an
20:24
issue rent and mortgage payments are an
20:25
issue 50 Democratic lawmakers on
20:27
Wednesday praised you they also called
20:29
on you to cancel rent and mortgage
20:31
payments for residents and businesses
20:32
hurt by the pandemic will you do that
20:34
haven’t seen the letter yet from the
20:36
legislature legislatures I just I saw
20:39
that clip this morning in the news but
20:42
we have worked very closely to make sure
20:45
that people are suffering during this
20:46
time and we put a pause on evictions it
20:49
was one of the first things I did on
20:50
addictions and foreclosures so that
20:52
nobody came and nobody can have their
20:54
utilities cut off nobody can be evicted
20:56
nobody can be foreclosed on and we’re
20:58
gonna try to work with the lenders and
21:00
with landlords or at work through this
21:02
as we come out of this crisis because
21:04
certainly everybody’s been hurt
21:06
economically you just had a special
21:08
congressional election on Tuesday in
21:10
your state what was that experience like
21:13
and do you would you like to see all
21:15
mail-in voting this fall I just had a
21:19
good call yesterday with Congressman to
21:21
be kwazy and fumet who was elected to
21:23
fill the seat of Elijah Cummings the
21:25
election went very well I was sort of
21:27
surprised it was all done by mail with a
21:29
few exceptions of
21:30
people that didn’t have fixed addresses
21:31
or people that needed to go out in
21:33
person and it went if it came off
21:35
surprisingly well without a glitch and
21:38
you know we’re going to encourage people
21:39
in the June primary that that’s coming
21:41
up for the rest of the state to vote by
21:43
mail there will be the opportunity for
21:45
those who can’t have one polling place
21:47
each county for folks that for example
21:49
like they’re blind or don’t have a fixed
21:51
address that need to get out but most
21:53
people we want them to vote by mail it’s
21:55
the we want to have every vote counted
21:56
but we want people to be expressing
21:58
their vote and making their decisions in
22:00
a safe way final question here the last
22:03
time I visited with you in Annapolis it
22:06
was a for a political story you decided
22:08
not to run for president you were
22:10
thinking through the idea at the time
22:12
this week it was just announced that
22:14
congressman Justin Amash of Michigan is
22:16
considering a third party run would you
22:19
be willing to support him are you
22:20
leaning toward Vice President Biden or
22:23
President Trump you know in the middle
22:26
of the pandemic you know I haven’t quite
22:28
frankly Bob spent a lot of time thinking
22:30
about politics I think I know there’s an
22:32
election going on but my focus is on
22:35
trying to keep the people in my safe
22:36
state and running the NGA which is a
22:38
nonpartisan organization that requires
22:41
me to stay out of politics for a while
22:43
so I’ll pass on that question and we’ll
22:46
figure that out in November I’ll ask you
22:49
about that at some point though in the
22:50
coming months I’m sure about it I’m sure
22:52
you worried Thank You Governor Hogan for
22:55
joining us here at Washington Post live
22:56
we appreciate your time thank you Bob
22:58
thank you and thank all of you for
23:01
watching tune in tomorrow at Washington
23:03
Post live at 11:00 a.m. Eastern to catch
23:05
Post columnist David Ignatius he’s gonna
23:08
be in conversation with Ford Motor
23:09
Company CEO Jim Hackett for more
23:12
information on that and other programs
23:14
go to Washington Post live.com and
23:16
register but for now I’m Bob Costas
23:19
stay well and stay safe

The Democrats’ Best Response to Republican Power Grabs

In Michigan and Wisconsin, lame duck Republican-majority legislatures are enacting laws to limit the powers of incoming Democratic governors. Two years ago in North Carolina, the same happened. These moves are particularly striking examples of recent aggressive Republican procedural hardball. Whatever the right rules are for the separation of powers, they should apply to both parties and not be changed opportunistically.

.. Should they go tit-for-tat and escalate procedural shenanigans, rules-stretching and rules-breaking? Or should they strive, leading by good example, to maintain a system of norms that have provided political stability in the hopes that a more moderate, reasonable Republican Party will re-emerge?

.. Retaliating in kind could aggravate already deep polarization and wreck what’s left of our political norms. Restraint, on the other hand, would establish new norms that establish electoral disadvantages for Democrats and embolden Republicans.

.. There is a better option, and it also happens to be the best option. Democrats can use the Republican hardball against them by weaving together the Michigan, Wisconsin and North Carolina cases into a larger story to take to voters in 2020: the indictment of Republican attacks on democracy accompanied by an aggressive reform agenda for strengthening constitutional norms and democratic procedures.

.. But a very clear narrative or popular revulsion — or both — can change that. Examples are found in the Progressive Era around the turn of the 20th century and again in the immediate aftermath of Watergate, when procedural reform gained traction, for better or for worse, and both term limits and campaign finance reform had moments of widespread popular enthusiasm. There’s good reason to think that the next two years offer the opportunity to create such a corruption narrative and to take advantage of what’s likely to be growing revulsion.

.. President Trump’s administration has made this job easier: The midterm election results showed that its scandals and disgrace have already focused voters’ attention. That’s not the time for retaliation and escalation. It’s the time offer prescriptions for rebuilding the rules that accompany a diagnosis that helps voters make sense of how badly wrong things have gone. Democrats can try to punish Republicans at the ballot box by trying to strengthen rather than weaken democratic norms.

The obvious place to begin is with the White House itself. Proposals to

  • require presidential candidates to disclose their tax returns,
  • give teeth to the Emoluments Clause,
  • strengthen anti-nepotism rules that should keep unqualified family members out of sensitive offices,
  • extend conflict-of-interest rules to include the president, and
  • turn blind trust norms into binding rules

won’t be hard to understand under Mr. Trump. They will reinforce voters’ distrust of the president while also offering ways to prevent his abuses from becoming standard practice.

.. Republican procedural abuses at the state level precede the Trump administration, but they can fairly be connected to it. Most important is disenfranchisement. Democrats should emphasize the sustained nationwide Republican effort to limit access to the ballot and offer proposals to

  • restore the Voting Rights Act,
  • end felon disenfranchisement,
  • undo restrictive voter identification rules,
  • ease registration,
  • protect early voting and
  • ensure that voting places are more widely and evenly distributed.

Not only has Mr. Trump been on the wrong side of those issues, encouraging state crackdowns on imagined millions of noncitizen voters; but voting restrictions in narrowly won Midwestern states got him closer to the White House in the first place.

.. Other proposals, from statehood for the District of Columbia to gerrymandering reform, then make sense as part of the same effort to strengthen representation and fair democratic practice.

.. This is also the best approach for Democrats in the short term because they’re not in a strong position to retaliate even if an angry activist base wants them to. Despite some losses last month, Republicans remain in control of more governor’s seats and more state legislatures. More important, making things worse right now really is the wrong thing to do. If Democrats follow a course of unrestrained but legal tactics, we could find ourselves embroiled in even more severe dysfunction and a constitutional crisis. Tit for tat is sometimes necessary to enforce norms, but escalation in an already seriously polarized environment is dangerous.

.. If Democrats can offer a unifying indictment tying Republican attacks on democratic norms to Trump administration abuses, along with a coherent package of serious proposals to restore procedural fairness, voters will have a way of making sense of new examples of Republican sharp dealing.

.. Proposals to shorten lame duck legislative sessions and to constrain their authority, for example, would reinforce the idea that Republicans have been the party of procedural abuses and unfairness while still setting forth a good neutral rule.

.. This is the alternative to doing nothing or making things worse: seek to punish Republicans in 2020 by offering a vision of how to make things better.