Socialism does not work: Florida Bankers Association CEO

Channel: Fox Business
Published: 05/21/2019

Description
Florida Bankers Association CEO Alex Sanchez on the state of the U.S. financial sector and the debate between capitalism and socialism. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Head...



Transcript
Welcome at corporate debt, rising federal reserve chairman jay powell warning that it could put the us economy at risk, but can't be compared to the subprime mortgage bubble ten years ago. Joining us right now is florida. Bankers association president and ceo, alex sanchez. Hey alex good to see you thank you for having. We talk about debt all the time, whether it's the national debt of twenty two ...
rillion dollars or corporate debt, rising markets, don't care yeah. Look. I think the chairman's comments here were we're good. They were appropriate and timely, but we don't want to be where we were ten years ago ten years ago. We'Re talking about why, on the banks, lending the usbanking system is that the greatest highest levels of capital in our history and i think, distress, testing that our larger banks and regional banks receive we're well capitalized and can handle, as a chairman, said, any downturn in the Economy, so yes, businesses are borrowing because they feel confident in the economy, maria and versus what we were 10 years ago when they weren't borrowing. But this is a risk that the federal reserve keeps highlighting. This is the third time in at least i think about six months or so that the federal reserve has highlighted risk tied to non-financial corporate borrowing and particularly leveraged loans, which is a 1. 1 trillion dollar market that grew by 20 % lastyear.

As credit standards declined. The fact that they keep hammering this they're trying to tell people you should be worried about this, trying to tell investors, be careful, yeah and a good point, and but, as the chairman said, it is a moderate risk. That'S how he classifies it. I don't see the leveraging either among consumers or businesses that existed back in o 706 heading into the great recession of o8. So i don't think we are anywhere near that right now, but as far as the banking systems are concerned are criticized assets when our regulators come in to check our banks out whether it's big banks, community banks or regional or all-time low. So our criticizedassets are very low. People are paying on time. Companies are paying on time, so i think that's a testament to the economy. I want to talk about your story because you wrote a new op-ed in fox business on fox business. Calm. It'S tastic thanks for writing. You write.

My life under capitalism has been one of growth, opportunity, challenge, reward failure, success, triumph and i would not change a thing. This system we call free enterprise, also referred to as capitalism is the best one ever invented. You came here from cuba with your family back in september of 1962, and you were fleeing. You wanted asylum. You were fleeing what was going on in cuba before weget to the story. You have a gallup poll this morning, john four and ten americans embrace some form of socialist and it's even worse. When you look a little deeper into these gallup numbers. Fifty one percent of americans say the socialism would be a bad thing. Forty three percent would be a good thing. Only 51 percent of americans say socialism would be a bad thing. It'S in it's a there are mixed opinions, according to gallup, on what americans think about socialism, but i can tell you with a couple key takeaways. 157 percent of democrats in america say the socialism is a good thing, wow, a good thing.

You lived it socialism and then capitalism gofor it maria look. It saddens me to even see the numbers. That john is mentioning. I mean it should be a ninety ten percent argument or, if not higher than that. Socialism is a sharing of the misery, as winston churchill said, and as market thatcher also said that the the problem with socialism is, when you run out other people's money. Okay, and so it doesn't work, give me one example, mr sanders or anyone else on the socialist side where it has worked worldwide. Venezuela, cuba, the soviet union, eastern europe, it does not. We had some socialists on the show. No mickey conks, she said she said she's, not an out-and-out socialist but she's a socialistwith, some safety nets. I mean do you, i don't know what that is, but do you think, maybe that people are not understanding what socialism means? That'S why you've seen the numbers? I think that's exactly right, you don't see it and it's it's it's borne out in the deeper dive, which is americans by and large. Seventy five percent of americans support a free market for technology innovation, so as it relates to they get that the free market works, but they're frustrated with things like health care and the environment that it'll come in equality, income, inequality and it yet and protecting consumers online Is a big thing as well, but maria this is the greatest wealthgenerating country and system ever invented by man and woman kind, it's not even in question, and it's not there's a joke in spain that i'll cut it short. It says when you ask the socialists: if you had two homes, would you give one to the party? The answer is yes, and then you ask him how about those two bicycles over there? Would you get one to the party says? No, those are mine so that he actually has, and that he's worked for no one wants to give what they worked hard for to the government and in the sharing of so it doesn't work.

I mean i and it's hypocritical, we're insidious, because when you havefully socialized medicine, you have a government and inept megalomaniacal bureaucrats deciding who gets to live and who dies. So that's it! That'S what it boils down to again: it's price controls and it's rationing and it's like. Oh well, you're 90 you're not gon na get that cancer drug because well you're, 90 and and people laugh at me when i say that. But that's ultimately what happens because the government are making decisions about the government is making decisions about you and how you see? How it will spend money on an mri on a cancer drug whatever it is it's the government's decision. Basically, these individuals want to turn the united states into new york city and wecan, see what bill de blasio has done to this fine city and the very people in need here, the most vulnerable they get ignored. My vase bureaucrat governor cuomo, said he said. First, they told us a tax, the rich now they're, leaving and - and so you know, doesn't work if americans are upset with the the influence of money on politics. Now wait until it's socialized, because money will buy access and infants. Well, the money will go to the politicians there you go aunt maria, so look. I think this debate is over with and i think hopefully our university systems will will you know, embrace the free enterprise system. I think that's what our students shouldbe learning alex. Thank you very much.

Thank you, murray thanks for having me bed and the conversation alex sanchez.


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