Lorne Levy with Polygon Financial joins Kim to discuss the 1% rate cut and its effect on loans. Last week with the half-percentage rate cut the mortgage loan rate actually went up because there was no appetite in the secondary market for the loans.
The bill of the day is HB20-1143, Environmental Justice and Projects Increase Environmental Fines. This bill increases fines and creates both a justice advisory board and a justice ombudsperson position. For the fiscal year 2020-21 the Department of Public Health and Environment requires an appropriation of $1,902,298 and for FY 2021-2022 $2,938,678. Another example of government out of control.
Sue Moore from the Republican Liberty Caucus of Colorado notes that this past Saturday, day 67 of a 120 day session, the session was closed due to the coronavirus. The budget committee will be meeting during the closure as the one requirement for the session is to pass a balanced budget before adjournment. The committee’s task is difficult as fiscal forecasting is difficult at this time. Sue reviews senate bills that include multiple brew pubs, creation of a Financial Empowerment Office, mandated state retirement program, and creation of an Air Quality Enterprise.
Jason McBride’s calls it as it is, a blood bath. Futures had hit the lock limit. It is no surprise that we see this hysteria as there has already been recorded 2.1 billion mentions in media regarding the coronavirus, up from 1.1 billion mentions on Friday.
Dr. Brian Domitrovic, co-author with Larry Kudlow of JFK and the Reagan Revolution: A Secret History of American Prosperity, joins Kim to discuss our current situation. In summary, he states that every long term economic crisis has been caused by the government’s response to an unforeseen event. If the government will let spontaneous order run we will be fine; people are much better at solutions than a central power. This includes decreasing taxes, rules and regulations that negatively impact the economy. A conversation not to be missed.