Former bank CEO slams Trump's handling of China trade tension

Channel: Fox Business
Published: 05/16/2019

Former Wells Fargo CEO Richard Kovacevich on the potential impact of the mounting trade tensions with China and the debate over capitalism versus socialism. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street ...

, so if you have two industrial giants both taking on severe levels of that type of analysis, in other words, having a great deal of loss of purchasing power, it is not good for either one. so that the there is a winner in the fight. But both sides lose. , so the winner is the one who loses the least. neil. I like that. , the winner in this trade war, is the one that loses the least. That was ala ...
greenspan with maria bartiromo this morning. It is an interesting issue to pick up with a former wells, fargo ceo.

He says right now, the back and forth on. All of this is not helping matter. Any. richard verygood, to have you. what is remarkable. This is the first thing i can think richard. The markets are fully aware of the impasse we have got with china and china going out of its way to say we know nothing about upcoming meeting calling out steve mnuchin to say we don't know where he is getting, that upcoming meeting thing. then letting know they Have 2 1/2 $ 3 trillion to play with to support their economy when it comes to big tariffs that last a long time. ? What do you make of the market poo-pooing? All of that today, apgoing back to fundamentals, ! It is surprising i would admit to that, but also we've been up and downon trade. Now, for how long i mean one day, another day is another day. , neil you're right.

I think actually the economy based upon what is happening at walmart. That is basically economy. 2/3 of the economy is strong. I think people said look, the economy is going to do fine. This is all rhetoric. Everyone is posturing. you get back to. It is in both countries interest. They get this done.

neil. What if they don't? What? If they don't, you had expressed concerns, you know that the federal reserve already was risking a recession with its policy. You add this on to that and the fact that since you made those comment, the market seemed tobe factoring in rate cuts toward the end of the year, not one or but maybe two or more. So what's changed . Well, i think if they don't get this done, i think it is going to have a negative effect on the world's economy to some extent. The estimates are maybe. 2. 3 in the u. s.

, because we are not a big exporter or importer relatively, and and also that it is going to impact the stock market. I think, at this level of the stock market. If a trade deal doesn't get done, it goes down. neil. How do you think the president handled it ? I don't think he has delled it well at all. theproblem. You know the president is used to dealing with real estate developers. This is the way you deal with real estate. Developers.

The opposite party, particularly in asia, has to save face. trump thinks he has to win. and that's very dangerous. You want to win without making it look like you're the winner. He is the opposite. he doesn't care. I think -- neil, if you're right, he doesn't change that stance. We'Re not going to have a deal. Are we ? Well, you know, you know he will change the stance.

I mean you know it is in his interests. He says he put the stock market as his indicator. How good he is. neil that hasbeen the wind at his back to your point. Let me ask you a little bit about. We were talking about earlier in the show bill de blasio, the new york city mayor, entering the presidential race, almost to a man or woman. They are hard left. joe biden would be more moderate if you buy consensus press on all of this, they all to a man or woman are going after rich folks going after financial institutions. A couple of them have fingered wells, fargo long after your stewardship there.

I might point out, but my point is: it will be a crowd that is largely unfriendly to for wont of a better word capitalists who think say: abusedthe privilege. What dowhat do you say: we have to make the case. the case. Is capitalism created the most wealth for the most people for the longest period of time for highest standard of living from any other political system. ? You just have to point out. Do you want to be extreme socialist? And you know you have communist china and russia and develops sense and cuba. You want to have moderate socialism, you look at europe. europe. Economic growth is half what it has been in the united states. , their standard of live something lower.

They have unemployment. For i don't know how many decades of close to double digits all the time s that what youwant, but you have to make the case. , and i think it is up to the other party or whoever is running against, to make the case that this is better Than any other alternative that has existed any other political systems that existed. neil, this might be more parochial right now, interim ceo, alan parker, a lot of people say he becomes the permanent one. Do you have any thoughts either way? ? I have no idea. What is going? On. , i've been retired since 2009. Actually, i think it sounds like.

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