CNBC’s “Halftime Report” team is joined by Social Capital CEO Chamath Palihapitiya to discuss his view of the markets amid the coronavirus pandemic.
Chamath Palihapitiya, founder and CEO of investment firm Social Capital, told CNBC on Thursday that the U.S. shouldn’t be bailing out billionaires and hedge funds during the coronavirus pandemic.
“On Main Street today, people are getting wiped out. Right now, rich CEOs are not, boards that have horrible governance are not. People are,” Palihapitiya, an early Facebook executive, said on CNBC’s “Fast Money Halftime Report.”
“What we’ve done is disproportionately prop up poor-performing CEOs and boards, and you have to wash these people out.”
“Just to be clear on who we are talking about. We’re talking about a hedge fund that serves a bunch of billionaire family offices, who cares? They don’t get the summer in the Hamptons?” he said. “These are the people that purport to be the most sophisticated investors in the world.”
Palihapitiya also said he was concerned that the Federal Reserve’s plans to support to economy during the COVID-19 crisis are going to have consequences.
The Fed earlier in the day announced a slew of new moves aimed at getting another $2.3 trillion of financing into businesses and governments, including its Main Street business lending program and market interventions. The central bank said its loans will be geared toward businesses with up to 10,000 employees and less than $2.5 billion in revenues for 2019. Programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures aimed at getting money to small businesses and bolstering municipal finances with a $500 billion lending program, it added.
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During the ongoing coronavirus pandemic, there has been much debate and discussion surrounding the economic impact and how different sectors of society should be supported during this challenging time. One voice that has emerged strongly in this discussion is that of Chamath Palihapitiya, a prominent venture capitalist and former Facebook executive, who believes that the United States should not bail out hedge funds and billionaires during this crisis.
Palihapitiya has been vocal in his criticism of government intervention to support large corporations and wealthy individuals, arguing that the focus should instead be on providing relief to small businesses and everyday Americans who are struggling to make ends meet. He believes that allowing hedge funds and billionaires to receive bailouts would only further exacerbate income inequality and benefit those who are already financially secure.
In a recent interview, Palihapitiya stated that he believes the government should focus on providing direct cash payments to individuals and families, as well as support for small businesses that are the lifeblood of the economy. He argues that these measures would have a more immediate and targeted impact on those who are most in need, rather than propping up wealthy individuals and large corporations that are better equipped to weather the storm.
Palihapitiya’s views have sparked debate among policymakers and economists, with some arguing that bailing out hedge funds and billionaires is necessary to stabilize financial markets and prevent a deeper economic downturn. However, others agree with Palihapitiya’s stance, arguing that the government should prioritize supporting those who are most vulnerable and ensure that assistance is distributed fairly and equitably.
Ultimately, the debate over whether the U.S. should bail out hedge funds and billionaires during the coronavirus pandemic is a complex and multifaceted issue that requires careful consideration. While there are valid arguments on both sides of the debate, it is clear that the focus should be on supporting those who are most in need and ensuring that relief efforts are targeted towards those who are struggling the most. In the words of Palihapitiya, “If you’re looking to the government for help right now, you’re fucked.”
Palihapitiya that guy is my hero. I remember that interview 3years ago.
One of the best videos on the internet!
Based
Absolute sigma male
American capitalist oligarchs have so thoroughly brainwashed us we have news anchors on TV insisting that the core concept of capitalism is bad for our capitalist economy.
And then he has the nerve to ask "why does anybody deserve to get wiped out?"
How did we end up here?
This is what true capitalism is
Not crony capitalism that privatise the gains socialise the losses.
Damn the dead eyed horror in his eyes when he hears that ultra rich CEOs and hedge funds deserve to lose their precious money.
"Hold on Scott" i.e. STFU Scott
Based Chamath, look at this stooge defend his corporate masters
This guy rules. Can we get him into the Treasury or SEC somehow?
Because that's how capitalism works!!! Why should the government be bailing out companies?!?!?! That's not capitalism.
Let them fail.
nothing is immoral concerning capital. only to the rich is it immoral to lose money.
Unfortunately against his point, the last time the airlines went through bankruptcy, all the airline employees lost their pensions. There current pay and work rules still are negatively effected by the concessionary contracts drawn up during the last bankruptcy. Its taken nearly 20 years for pay scales to recover against inflation since the last rounds of bankruptcies.
Lol, this and also real estate investments that are never rented out and are artificially inflated about market value.
Won't someone think of the billionaires
I've been saying this for more than a decade. I'm 11.
This presenter is being stupid. A bailout is wiping out the taxpayers, so we shouldn't save the CEOs by wiping out the tax payers
We need more real content like this! Thank you for having somebody on bold enough to talk about our real issues
Scott is the biggest scam artist lmao btw your book is trash
This f..king anchor worried about mofo hf.
who cares what this indian thinks. he's a nobody.
I agree ☝️
Absolutely…
This is a big boy game my friend….
Real life Monopoly S***T..
90% of these companies are truly smoking mirrors when it comes to earnings, estimates and forcasts…
Also These small offices are B******T.
Listen to this man….
Real talk.
WIPE OUT THE RICH CEO AND HEDGE FUNDERS
WIPE OUT THOSE ANIMALS
A true free market lets companies fail. Banks shouldn't be bailed out. Airlines shouldn't be bailed out and the automotive industry shouldn't be bailed out.
the way he said "yes." with a stone cold tone lmao
Pump and dump. Or perhaps, get others to dump. Just a speculator talking his book. Imo he was likely short or looking to deploy cash at this point.
LOL listen to this CNBC puppet
It's a "natural disaster"?
THEY CREATED THE DISASTER YOU IDIOT
chadmath
Socialism for the millionaires and billionaires but unregulated “capitalism” for the rest of us…god bless America…
Love chamath's insight …let them fail who cares hahahhhh
and Blackrock and those of the likes manage money for pension schemes and normal people plus best case scenario people get laid off.
I absolutely don't endorse communist bailouts but he should definitely tell the whole story, the lenghts to which this chamath guy is willing to go just to appeal to the crowd are mesmerizing.
He is either stupid or an hypocryte or maybe both.
A free market ultimately cannot sustain when lobbyists can force the play of favourites.
The problem is this; lobbyist agendas caused the need for bailouts to start with.
The greed of individuals using market inertia to manipulate policy until chaotic change occurs and then accept financial corrections for the endangered companies into their very personal pockets.
You have to let them fail else it will happen over and over again.
The actual workers get nothing but instability and a weakened outlook regardless.
Let them fail.
I❤️ Him Look Listen And This Other Guy Scott Get With The Program
You know what? I come from a working class family or maybe even poor family. But if I were rich as these billionaires, I would give all my money away. I would try to help as many people as possible. I would build houses, buildings only for homeless people. Whats the point of having so much money? In the end, we all gonna die and you cant take that money money with you.
Someone who I really admire is Chuck Feeney who gave all his billions away!
No duh
The news Anchor doesn't understand that this paper money(fiat money) system is a Pyramid scheme!
Chamath spitting facts as usual.
Let them get wiped out, well said
Who pays for UBI?
This aged well.