35 Burst results for "Larry Summers"
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Campaign in a generation. The S&P is now down 50 down 1.3%. The Dow is down 290, a drop there of 9 tenths of 1% as stack which have been down more than 2% now down by 1.7% lower by 193 points. But ten year yield 3.7% with a two year 4.60%, spot gold right now is up 1.7% to 1860 on the ounce, West Texas intermediate crude up 1.1%, 75 56 a barrel. Bitcoin down 1.4%, but 19,951. Former treasury secretary Larry summers says the meltdown of SVB financial groups should not pose a risk to the financial system as long as depositors are made whole, and on Bloomberg, Wall Street week. He told our David Weston, the focus now shifts to next week's inflation data. We'll know a lot more after we see the CPI report, nobody should be making prescriptions with high conviction. But I'd say it's looking right now like the landing that many of us saw last fall doesn't really appear to be happening. And to hear the full interview with Larry summers tune into Bloomberg, Wall Street week, Friday, 6 p.m. Wall Street time right here on Bloomberg radio. Again, recapping stocks lower across the board with the S&P down 1.1%, the ten year 3.71%, the two year 4.60%. I'm Charlie Palatin that is a Bloomberg business flash. This is Bloomberg. Sound on with Joe Matthew on Bloomberg radio. It doesn't sound like The White House is losing sleep over SVB, even if the market's upset about it. We talked to Heather Boucher from the council of economic advisers earlier this hour, she referred us to the
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"At Wall Street week. He is Larry summers of Harvard. So Larry, one of the big events of this week was Jay Powell, the chair of the Federal Reserve speaking with our very own David Rubenstein and the economic club in Washington. And the markets came away from that saying, you know what? He didn't go as far as we thought he would it's saying we've got to tighten more, given those jobs numbers. Are we becoming complacent because there's talk on Wall Street now that there won't be any landing, whether it's soft or hard, basically we'll just keep going. I think the fed understands that it doesn't understand because no one can know the future with confidence. And I think that the fed is determined to do what's necessary. That's certainly what I hope is the case in a substantially uncertain environment. I think the consensus has become substantially too complacent about inflation for variety of reasons. First, let's be clear, even after the reductions we have seen, inflation today is at levels that would have been unimaginable. For inflation, two years ago. And so we haven't come all the way down or got this fully under control. And in a way, I guess one way to put it in Super Bowl week here is that it's easier to move the move the ball down the field at midfield than it is when you're in the red zone. And we're getting closer to the red zone with respect to inflation. And so I think the gains in terms of further reduction are going to come harder. Second, I think there are a variety of bounce back factors that we're going to have. You saw it in the market wholesale, use car prices, which look like they're going to be a positive contributor to inflation. You've seen some reversal on gasoline prices more broadly. You've seen a variety of prices that blipped way up 9 months or so ago. And now that's mean reverting. Now that's coming back to normal. Well, it's not always going to be going down. And when those become normal, that's going to be an increment to the underlying inflation figure. And so that too, I think, is a cause for concern. Third, if you look at the variable set economists tend to think that you should look at to predict what's happening with inflation, we are an economy that's got relatively loose financial conditions. Now, given what's happened to markets by some measures, financial conditions are looser than they were when all this tightening started. That's probably misleading, but we probably are back to somewhere where we were late last summer in terms of the degree of tightness in financial markets. And we've got that at a time when we still have a record level of vacancies relative to unemployment. So I think with that kind of picture, the prospect that we are not on a trajectory now, where inflation is going to get to the target level. And therefore this tightening cycle is not just about one more, two more, three more, 25 basis point increases. But something more fundamental, that's a substantial probability in this environment. So I don't think it's a moment for any kind of euphoria. And I think there is some complacency that setting in in many places. Larry, we heard from chair
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"This is Bloomberg daybreak Europe. Let's get a check on what's happening on the markets for you where half an hour is the trading session here in Europe. The stock 600 is a tenth of 1% higher now as a pairing the gains that we had at the open, the FTSE 100, three tenths higher, the count count in Paris is three times higher as well, the Dax and Frankfurt is a quarter of 1% higher in terms of the sectors on the stocks 600. We had been talking about telecom shares, particularly in the red, that's of course Erickson being one of the factors that's driving that sector south and also the close brothers we were just talking about there with Leo Ken chipper is the worst performing stock on the stock 600 down by 13% now in London. So about two thirds of sectors trading in positive territory energy shares best performing up until 7 tenths up 7 tenths of 1% bottom of the baskets are also in parts shares down by four tenths of 1%. Okay, we will get back out to Davos shortly to bring you a really interesting interview that is going to take place there. Our colleague francine LaCroix is going to be talking to the fidelity international CEO and Richards that conversation at the World Economic Forum, of course. And Steven, interesting that a lot of the tone being set in Devils has been quite positive and our colleagues have been writing about this, of course, and sort of comparing it to 6 months ago. Had we had these conversations with executives and business leaders and Titans of Wall Street, would they have been so positive then, but somehow they managed to be and they partly because we're seeing a turn in the inflation story globally and also the China reopening story proving more positive. I was interested that Larry summers, the former US Treasury secretary saying that soft landings are the triumph of hope over experience and sometimes hope does triumph, which I thought was nice because a lot of people have been reflecting on how difficult it will be for the fed to navigate some kind of soft landing for the U.S. and growing season has been one of the things that's given us a bit of a lift in terms of optimism. I mean, Bruno la mer, the French finance minister speaking to francine earlier, was talking about how he's helping France will avoid a recession. Let's go to Francis now who's speaking to Anne Richards infidelity. Pleasure, a pleasure as always. What's the mood like here in Davos? It's interesting. I think people came into this week feeling maybe a bit gloomy. But the data points that have been coming through this year on the economic side have maybe not been quite as bad as people expected. And otherwise, I've seen some reports that say, you know, the mood here is very optimistic that this week. I don't think that's right, but I think definitely at the margin, people are thinking, well, maybe we're avoiding the really bad scenarios that really deep recession risk, maybe the risk of that. It's got a little bit less. So I think people are probably leaving a little bit more positive than they came in. And I think that's a good thing. Capital allocators, right? Asking the right questions about where capital needs to go next. Now, I think that is a super interesting question because I think when I look at the set of conversations I've had this week and I've had conversations with at least 5 or 6 different regulators. I think there is a bit of a disconnect between the fear of systemic risk, the continued drive from a kind of macroprudential point of view to get as much risk out of the system as possible. Against the fact that if we're going to continue to accelerate plans on decarbonization to get capital to get into some of these projects and some of these initiatives so that we can really start to move on the decarbonization agenda, also Ukraine up there. There's going to be a rebuilding agenda on Ukraine coming through over the next few years. If we're going to get the capital for that, it needs to come from somewhere. And if you're constantly trying to squeeze the risk out of the financial system, no risk no return. So I think there is a disconnect and I think this week we've seen some of these conversations try to be initiated to bridge that gap, which I think is really constructive. How do you square that circle? Well, I think you need to think about what sort of risks. I mean, the question I posed to more than one regulator this week is what sort of risk are you willing to tolerate? Where do you want that risk to be? So is it leverage? Is it a liquidity risk? Is it volatility risk? Is it absolute risk of capital loss? What risk are you willing to tolerate? You can't take it all out the system. How much and where? And think through that framework, because if we have a little bit more guidance on that framework, whether it applies to banks or insurance companies or asset management companies or anywhere else, think about where that risk should sit and then we can start to figure out how we get the capital to the right places within that context. But I think we need to square that circle. And you think we'll have answers pretty soon. You're talking about regulation, right? Nothing is ever pretty soon on that. But I think we can see a little if we can see a little bit of a change in thinking and approach. I think the FSB, another regulatory umbrellas like that can help us think through where do we want that risk to be. And then we can start working on construction suggestions. And what's your outlook for active investment managers in 2023? I'm an active investment manager for the most part. Therefore of course I'm positive about it. But I think it's been fascinating. I think you have, if you look at the C suite in the companies that we follow the many thousands of companies that we follow around the world, companies have had to deal with a lot over the last three years. They're very seasoned. They understand how to react quickly when they need to. That muscle is really well developed. And it's more businesses and more resilient than they were for sure. So what we can see is that as the world chucks different things at us. So sometimes call it, we're in this kind of multiverse, everything everywhere all at once. Stuff keeps happening, right? Companies are better at adapting and we
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Thank you so much for being here. That Sam palm asano. He is a former chairman and CEO of IBM. Coming up will wrap up the week with our special contributor Larry summers of Harvard. This is Wall Street week on Bloomberg. I'm Stacey Marie Ishmael, managing editor of crypto for Bloomberg news and your host for Bloomberg crypto, a daily Bloomberg I heart podcast. Join me weekdays for a deep dive into how digital financial assets affect our lives. The ecosystem that's being built around crypto, nothing short of amazing. We examine who the players are and what's at stake in this financial upheaval. Listen to Bloomberg crypto on the iHeartRadio app, Apple podcasts, or wherever you get your podcasts. Why do institutional broker dealers rely on BNY Mellon Pershing for a tailored and proactive experience? Marcus mattielli, director of institutional solutions, shares how Pershing helps you consider everything. In this highly competitive environment, BNY Mellon Pershing's institutional solutions team wants to know what are you doing today the position you are firm for future growth. Do you have confidence in the stability and durability of your strategic partners? Can you access clear guidance to help you be better? Sharper, faster, and more strategic, whether it's clearing, financing, collateral management, securities lending, or global trade execution, BNY Mellon and Pershing are committed to meeting the evolving needs of institutional firms. To learn more about the unique and industry leading solutions for broker dealers, visit Pershing dot com Persian yellow sea, member finra, NYSE, sip. Hey everybody, it's time for today's stem tip. Want to know how to make your selfies even better? Okay, let's use science. The best time for photos is golden hour. That's the moment right before the sun sets. When the atmosphere scatters blue and violet wavelengths, making perfect, soft, and golden selfie light to show off that beautiful face of yours. Click, check out she can stem for more inspiration. A message from
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"David Weston from Bloomberg radio. Easy does it, whether it's fed rate hikes or China letting up on COVID restrictions or steering clear of a rail strike. This is Bloomberg Wall Street week. I'm David Westin. This week special contributor Larry summers on the jobs numbers and chair Powell's take on inflation. Mike are of Ares management on the remarkable growth in private credit. Private credit has ended the out when rates are going up. And Tom montag and Anne finucane on their new TPG venture into the world of carbon credits. We saw an opportunity to improve the whole market. It was a week of searching for the happy medium, as China began the week in an uproar over COVID restrictions, put in perspective by former U.S. ambassador to China. Gary Locke. This is clearly the worst since Tiananmen Square. But things ended the week a bit more calm for China. After authorities signaled some easing in the COVID policy as urged by World Bank president, David malpass. I think they could use a recalibration more targeting of their lockdowns. We started the week with a looming rail strike. But President Biden and Congress sought to calm things down by stepping in and imposing a deal on the parties. The U.S. House is passing the bill to avert the strike by those freight rail workers. And consumers seem to be seeking their own happy medium as they started their holiday shopping. It was kind of muted Black Friday. It was solid customer traffic overall, but not strong. All of which brought us to fed chair Powell, who struck a balance or at least tried to between raising rates too much and not raising them enough. We need to raise interest rates to a level that is sufficiently restrictive to return inflation to 2%. There is considerable uncertainty about what rate will be sufficient. But then the U.S.
The Trish Regan Show
You're Dealing With a Team That Is NOT Smart...
"Reality is you're dealing with a team here that is not smart. I wish I wish. I wish they would get Larry summers on their team. Former treasury secretary under Bill Clinton and also the former head of the national economic council under Barack Obama. He's like the only guy that's actually willing to admit the truth. And by the way, the Democrats aren't too happy about them because of it. But he, like me, actually, I was saying it much earlier than him. Understands understands really and truly what is at stake and it's a lot. It's a lot because we are now in an environment where the fed is not properly positioned to be able to reign in this inflation. They are not willing to actually engage in the so called quantitative tightening, which they need to engage in. In other words, they had all that easing. They went out and bought a $120 billion worth of mortgage backed securities and treasury bills for months and months and months and months for years. Pumping 7 nearly $7 trillion into the economy. You couple in all those $1 trillion programs that Joe Biden and the Democrats before still along and you get an environment with just too much cash floating around in the system.
The Trish Regan Show
Trish Is Calling Out the Democrats
"Can't say we're going to pump $6 trillion in. Also, hey, a few more chilling and over here in a few more trillion over there. And some more stimulus relief checks and expect and expect that it's not going to have an inflationary effect. Unbelievable, highly irresponsible of all of these people, Larry summers came out with an op-ed. Maybe about a year ago in the Washington Post was highly criticized by his own party to the point where he had to go back and then write another one sort of explaining because people were so appalled. In other words, get with the program, buddy, it's all about printing more money and giving out more handouts. Handouts, which really don't work. For goodness sakes, we've got American struggling with prices at the gas pumps struggling to feed their families, and yet the answer is to send helicopter money to Vassar grads that are studying, I don't know, philosophy and all those great things. In other words, they have made so many mistakes. And they want to cover up these mistakes because all they care about is getting reelected. And this is what is so dangerous to our country right now. It needs to be more than just getting reelected. We're talking about people's futures. We're talking about countries future. We're talking about our economy, which is so fundamental to everything else that we do. And yet they're willing to be so irresponsible all in the name of hopefully getting elected again, which by the way will cost them the election. Because if we had had a growing economy in less inflation and low gas prices, guess what? They'd have a heck of a better shot going into November than they do right now.
The Trish Regan Show
Investor Neil Grossman Reacts to Larry Summers' Latest Comments
"Interestingly enough, speaking of economists that tend to have political views, you've got Larry summers out there, and now I'm going to play for you some sound he's at it, Aspen, just a few days ago at the festival there. Basically saying, what the heck happened? We had it going well. And then this. Here he is. We basically had inflation under control for 40 years, despite the fact that the price of oil fluctuated despite the fact that there were all kinds of supply shocks. We lost the thread along with many other countries about a year and a half ago with massively expansionary policies. Okay, so there you go. It's what you're saying, right? They just spent too much money. They lost the friend in my view a lot longer ago than 18 months. This is interesting, explain, explain. Look, the Central Bank of the United States is not a Central Bank, or it wasn't, and it's coming back to maybe to home. But it became a central asset manager. The basic premise became making sure asset markets were supported and bailed out more than anything else. This fed and will even misses Yellen. If you went through a normal risk return analysis, you cut off half of the probability distribution that's wrong. You're always going to be right. You think. They didn't want to consider the consequences. And when you overlay reality in the probability distribution and have to acknowledge that there's a risk, you take policy action earlier to address those potential risks. You've got, you know what? I call it ostrich economics. They stuck their head in the ground. Prayed it would go away. And all it did was get worse and they kept, you know, they came up with acronym or added J after our transitory was just a bad answer. I know, but it was a big word, though. It sounded good.
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Kong, 1230 Monday afternoon here in Sydney. I'm Paul Allen. And I'm Brian Curtis trading is underway now in many of the key markets that we track for you on this program And it's notable that the nikkei has turned around now is up about two tenths of a percent. Japan's finance minister shinichi Suzuki was talking to reporters a short while ago saying the government remains ready to take action to intervene again if necessary if it sees excessive action in the currency markets and so right now we've seen dollar yen at one 44 76 and again just a little bounce, not sure it will hold because the pressure is very much to the downside today. The hang seng index is just open down about 8 tenths of 1%. More on markets coming up in a few moments, Paul. Well, the world economy is showing signs of a rapid down shift as it contends with a series of shocks, former treasury secretary Larry summers is some of them, a self inflicted by policymakers, and this increases the likelihood of another global recession. I do certainly think we're living through a period of elevated risk. And so in the same way that people became anxious in August of 2007, this is a moment when there should be increased anxiety. Some are said he sees risks with the fed hiking, interest rates, along with the UK prime minister Liz truss's program of tax cuts, this all makes for a potentially tension filled gathering of global finance chiefs next week for the annual IMF and World Bank meetings and Washington. Summers says it remains to be seen with a Central Bank's more broadly around the world we'll need to pivot towards wiring about financial stability issues rather than inflation. Billionaire JD.com founder Richard Liu has settled his lawsuit with a student, Liu ching Yao, who had accused him of rape back in 2018. The details of the settlement were not released. Bloomberg Stephen engel has more on the suit. We do know that this former Minnesota college student had sought upwards of 50,000 U.S. dollars in a civil lawsuit because the criminal proceedings never materialized because prosecutors essentially said that there was not enough evidence. So the accuser did do a civil lawsuit and it was just within 48 hours of the trial to begin in the United States that the settlement was reached. Again, Richard Liu had long said that this was a consensual encounter back in 2018 and a joint statement that was put out by both parties after that settlement came out, said there was a misunderstanding. This U.S. civil suit had drawn international attention in part because China's domestic legal system makes it hard for women to seek recourse for sexual misconduct by men. If indeed, that's what happened. JD.com has lost more than $10 billion of its market value since this news emerged originally of the alleged assault. Credit Suisse's new CEO kerner has asked investors for less than a hundred days to deliver a new turnaround strategy. This comes as the cost of ensuring the firm's bonds against default climbed about 15% last week to levels not seen since 2009. The Credit Suisse has strong capital base and liquidity position and he told employees that he will be sending them regular updates until the firm announces a new strategic plan on October 27th. Last week, Credit Suisse said it's working on possible asset and business sales as part of its strategic plan, and those will also be unveiled at the end of October. All right, the time is 34 minutes past the hour. Let's take a close look at markets. You mentioned this downward push here this morning. The hang sign tech index is down about a half a percent. The hang seng index down about three quarters of 1%. We'll keep a close eye on shares of real estate developers today after a report that Chinese financial regulators had told the big banks to provide financing. This is a story that we did back on Friday. The PBOC and the China banking and insurance regulatory commission recently told the 6 biggest banks to offer at least $14 billion of financing support, including on mortgages, loans to developers and the purchase of their bonds. That's according to Bloomberg sources. And we don't have any trading in China today itself because of the golden week holiday. We do have the offshore Chinese currency trading at 7 13 29 and the dollar is a little bit lower this morning. So that's providing a little bit of a sucker for some of the Asian currencies, dollar yen, one 44, 78. And I mentioned earlier that we had a comment from the finance minister in Japan that they're prepared to do more, if necessary. We've had bond yields moving down this morning, the yield on the ten year is at 3.79% down three basis points. The two year yield is at four 20. And that's down 7 basis points. And the biggest mover of the day is oil. We have WTI crude trading at 81 60 a barrel now that's up 2.7%, and that's after OPEC plus it would consider cutting output by as much as or even more than a million barrels a day. Bitcoin trading at 19,204 so up a little bit down for the session. And the other market I didn't tell you about just briefly in Taiwan and Singapore, the tye X is down 9 tenths of a percent Singapore down about a quarter of a percent. Pull. All right, thanks very much, Brian. Now 25 minutes to the top of the hour time for a check of global
America First with Sebastian Gorka Podcast
Dave Bratt Weighs in on Larry Summers' Latest Comments
"Out there called Larry summers who is rather outspoken when it comes to what's happened in the last year and a half in America and we have our eminence Greece when it comes to the national economy. He is the dean of the business school at Liberty University. Dave brat from a congressman from Virginia. I'd like you to react to this rather outspoken little clip from Larry summer, play cut. We basically had inflation under control for 40 years, despite the fact that the price of oil fluctuated despite the fact that there were all kinds of supply shocks. We lost the thread along with many other countries. About a year and a half ago with massively expansionary policies, relative to the size of the GDP gap, he's not backing down, Dave, I think he's going to be deported off Martha's Vineyard as well. So give us your reaction to that little clip. Yeah, well, he is a genius intellectually, right? Larry sorry, he's ahead of Harvard and the head of the World Bank for a while. All these kind of things. He's got the pedigree. He's got the brain. He can write the top journal articles and all that. But what's noticeably striking about that clip is that it's really the first time he mentioned the fiscal overreach on the stimulus. All these guys kind of wait until the obvious, right? So now the shoe has dropped. Markets are freaking out. England had Armageddon and would have had a sovereign debt crisis yesterday. If they wouldn't have weighed in on the long term, whatever they call them over there, bonds. The bonds. And so it's good he's saying it. The left still isn't saying it. He's
Mark Levin
Jared Bernstein: Analysts Ignore the Restart of Student Loan Payments
"Take a listen to this cut 14 go It's been a brutal couple of weeks for the market obviously Awful inflation numbers Now the likelihood of a hard landing maybe even a global recession according to some The student loan forgiveness in the middle of all this adding hundreds of billions even a $1 trillion to the demand side Doesn't that make the fed's job even more difficult your allies Larry summers Jason Furman both warned that that's a problem The president once again bowing to the far left Does that justify increasing demand in making things worse right at this time Jared I know you know it's no way you can sell this to me with a straightforward Wait a second Let me try the following because this is a fact that I is not reflected in the rap you just gave me Did you ask And if you ask Jason and Larry about this I think they'll agree You should try and find out for yourself Okay The thing you left out was restart that is restarting student loan payments which of course have been in forbearance since the pandemic began That begins in January And if you actually look at the numbers month by month the amount of restart even with debt forgiveness basically offsets the amount Let me see if I can understand this This is the game You ready
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Test flight will be successful. The Artemis one rocket is on the launch pad ready for liftoff on Monday. The mission is the first step in getting American astronauts back to the moon. Senator Bernie Sanders says there's a reasonable chance the Democrats will retain control of the Senate following the midterm elections. I certainly hope we get more than 50 in the Senate that we got at least 52 so we can start going forward and protecting working people in a way we have not been able to do up to now. Appearing on ABC's this week, the Vermont independent pointed to divisive issues like abortion rights and gun control as he predicted Republicans could lose some traction with voters. Four people are dead, including a suspect after a man set a fire in a house in Houston early today and shot the residence as they fled. The suspect then fired more shots as firefighters arrived on the scene and was later shot by police. That's the latest, I'm Julie Ryan. And I'm to these Pellegrini in the Bloomberg newsroom. That's just that senator Elizabeth Warren had called upon President Biden to forgive $50,000 in student loan debt per person. But as we've been reporting, she now says she's not disappointed in President Biden. I am so happy to see what has happened I recognize that right now, hardworking families, middle class families, working class families, have gotten some real relief. Think about it this way. Most of the relief that the president has given, remember, the majority of people are going to get $20,000 in student loan debt relief. And Warren also telling CNN State of the Union, she is worried that fed chair Jay Powell's rate hikes will trigger a recession. But former treasury secretary Larry summers says Powell is laser focused on inflation fighting, and that's exactly what he needs to be doing. It was clear that inflation is the overwhelming priority, it was clear, despite some earlier confused talk about neutral that he was under no illusion that monetary policy was in an appropriate place right now. It was clear that whatever the academic arguments about demand shocks versus supply shocks said, the fed couldn't accept continuing high inflation and had to act. And summers they were on Wall Street week with David Westin. And forget about investing in stocks or crypto, a mint, Mickey Mantle baseball card, has just sold for a record of more than 12 and a half $1 million, and the sale Ed heritage auctions on Park Avenue in Manhattan. Eclipsed the previous record of $9.3 million for a sucker Jersey. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries. In the newsroom, Denise Pellegrini, this is Bloomberg. Broadcasting
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"I'm Julie Ryan. And I've teddy's Pellegrini in the Bloomberg newsroom. Investors will be watching for the August jobs report in the week ahead, we get more from Bloomberg's Karen Moscow. After I blow out jobs report for July, investors will get a fresh look at the nation's labor market on Friday, continuing strength may temper recession worries and allow the Federal Reserve to press on with steep interest rate hikes. The monthly payrolls are poor as expected to show a gain of 300,000 jobs for August, but the unemployment rate is seen holding at three and a half percent matching a 5 decade low. Also Friday, we get a look at factory orders and durable goods orders while Thursday it's construction spending and ISM manufacturing. Thank you, Karen. And the wage component in that Friday jobs report, and signs of inflation in that will be especially closely watched after fed chair Jay Powell this week vowed to raise rates and keep them higher as long as necessary. Former treasury secretary Larry summers says he thinks Powell got it just about right. The remarks were very concise there wasn't a lot of more academic discussion, but there was a statement of being resolute. So I think that's just right. I think the fed is positioned as well as it can be given the credibility losses and mistakes that there have been. And summer's there in Wall Street week with David Westin. An Apple offering some new clues about its iPhone 14 launch coming expected September 7th and Bloomberg's Mark gurman says this year's far out in space theme in the invites could be signaling apple is getting ready to boost satellite capacity, including adding an emergency texting feature and a mechanism for reporting major incidents in places
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Is for back to school shopping supplies. And this means you only have to pay the state 6.625% sales tax through September 5th. Global news, 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries. In the newsroom I'm Denise Pellegrini. This is Bloomberg. This is Bloomberg Wall Street week. We turn our attention to the markets this week, U.S. CPI members reinforcing concerns about inflation. The financial stories that sheep are worth a little different reaction to mark more indications of just how hot the U.S. economy really is. Through the eyes of the most influential voices. Larry summers, the former treasury secretary Catherine Keating, CEO of the NY Mellon Sam zell, Sharon, and founder of equity group investment. Bloomberg Wall Street week with David Weston from Bloomberg radio. It's all about time. 20 years since we last saw Euro dollar parity 6 months of a ground war in Europe and counting down less than 30 days to the next fed decision. This is Bloomberg Wall Street week. I'm David Westin. This week, contributors Larry summers of Harvard on his reaction to chair Jay Powell's Jackson hole remark. Look, I think he did what he needed to do. And former IBM CEO Sam palmisano on how to make the chips and science act live up to its name. You need to get the bureaucracy out of the way. This is a week to Mark anniversaries and look forward to deadlines. Starting with doctor Anthony Fauci's decision to step away from his NIAID responsibilities after serving 7 presidents over 54 years. I tried, as you know, my very best to have the facts and the science guide us a very different anniversary came with the Euro falling below parity with U.S. dollar for the first time in 20 years, driven in part by the looming energy crisis and prospects for the recession that it may cause. It's something Ian shepherdson of Pantheon macroeconomics thinks he's already here. Groups and recession now already. I mean, that's pretty obvious. Now we see that lasting for a while. We also passed the 6 month anniversary of Russia's invasion of Ukraine. As Putin's forces have struck a train station in the eastern part of the country, on the 31st anniversary of Ukrainians independence from Russia, a Russia that is trying to take it back. That's an irony, not lost on Amanda's slope of the National Security Council. It's a sobering reminder that just as the Ukrainian people had to fight to defend themselves and get their independence 31 years ago, they are unfortunately in a similar position today. But it was also a week for celebration, at least for those saddled with student loan debt with President Biden fulfilling his promise to give them some relief. I made a commitment that we provide student debt relief. And I'm honoring that commitment today. We will forgive $10,000 in outstanding federal student loans. But for global Wall Street, there was really only one story this week. Despite all the commemoration, and it came from Jackson hole and it came from chair J Powell. As markets eagerly sought answers to their questions about U.S. monetary policy. Coming less than three weeks from when the F one C meets again and the chair stepped up to the podium and basically said we'd all have to wait. Our decision does September meeting will depend on the totality of the incoming data and the evolving outlook. But as much as the fed
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"CPI members reinforcing concerns about inflation. The financial stories that shape our world. A really different reaction to mark more indications of just how hot the U.S. economy really is. Through the eyes of the most influential voices. Larry summers the former figure secretary Catherine Keating, CEO of BNY Mellon Sam zell, chairman and founder of equity group investment. Bloomberg Wall Street week with David Weston from Bloomberg radio. It's all about time. 20 years since we last saw a Euro dollar parity 6 months of a ground war in Europe and counting down less than 30 days to the next fed decision. This is Bloomberg Wall Street week. I'm David Westin. This week, contributors Larry summers of Harvard on his reaction to chair Jay Powell's Jackson pole remark. Look, I think he did what he needed to do. And former IBM CEO Sam palmisano on how to make the chips in science act live up to its name. You need to get the bureaucracy out of the way. This is a week to Mark anniversaries and look forward to deadlines. Starting with doctor Anthony Fauci's decision to step away from his NIAID responsibilities after serving 7 presidents over 54 years. I tried, as you know, my very best to have the facts and the science guide us a very different anniversary came with the Euro falling below parity with U.S. dollar for the first time in 20 years, driven in part by the looming energy crisis and prospects for the recession that it may cause, something Ian shepherdson of Pantheon and macroeconomics thinks he's already here. Groups and recession now already, I mean, that's pretty obvious. Now we see that lasting for a while. We also passed the 6 month anniversary of Russia's invasion of Ukraine. As Putin's forces have struck a train station in the eastern part of the country, on the 31st anniversary of Ukrainians independence from Russia, a Russia that is trying to take it back. That's an irony, not lost on Amanda's slope of the National Security Council. It's a sobering reminder that just as the Ukrainian people had to fight to defend themselves and get their independence 31 years ago, they are unfortunately in a similar position today. But it was also a week for celebration, at least for those saddled with student loan debt with President Biden fulfilling his promise to give them some relief. I made a commitment that we provide student debt relief. And I'm honoring that commitment today. We will forgive $10,000 in outstanding federal student loans. But for global Wall Street, there was really only one story this week, despite all the commemoration, and it came from Jackson hole, and it came from share J Powell. As markets eagerly sought answers to their questions about U.S. monetary policy. Coming less than three weeks from when the FOMC meets again and the chair stepped up to the podium and basically said, we'd all have to wait. Our decision this September meeting will depend on the totality of the incoming data and the evolving outlook. But as much as
Mike Gallagher Podcast
Kellyanne Conway: Unfairness of Biden's Student Loan Forgiveness Scam
"Kellyanne Conway, former senior adviser to president Trump was on with Sean Hannity last night on Fox News. And made a great observation about the cruel, unfairness of this college debt forgiveness scam that Biden is about to announce. It's not fair to the welders, the carpenters, the hairdressers, the people who chose to not go to college or who couldn't afford to go or to stay in the college, not fair for them. It's also not fair to the people who have paid off their student loans because they've made personal financial sacrifices to allow them to do that. It also is a complete farce that they already passed something misnamed as the inflation reduction act and turn around and are going to make inflation worse. Economists, Obama economist Larry summers and others are making this point show them that you're going to make education more expensive by letting these colleges know that OG every student basically has an extra $10,000. It's just tackled on from the beginning, but in addition to that, we are, we are making things more expensive because they continue to spend money that we don't have on things that we don't need. Cruelty, it's the cruelty of it all.
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"And I'm Denise Pellegrini in the Bloomberg newsroom. Investors are eyeing more inflation data coming out next week, and former treasury secretary Larry summers says he's concerned the fed will get lulled into a false sense of security. I'm worried that we're going to see some good news on noncore inflation on commodities on what's happened in gasoline, for example. And we're going to see a bit of economic slowing and that's going to lead the fed to think that things are under control. And somers there are on Wall Street week heard here on Bloomberg radio. Warren Buffett has been buying the dips, his Berkshire Hathaway was a net buyer of stocks last quarter, making $3.8 billion in stock purchases. New Jersey governor Phil Murphy is calling on the state controller to investigate the financial situation at New Jersey City university. More on that from Bloomberg's Nathan Hager. Denise the governor's office says the request for an independent probe follows public reports that NJ CU has gone from a more than $100 million surplus in 2014 to a $67 million deficit today. Murphy cites a Jersey journal report that found the surplus vanished within a year due to pension liability and the issuance of bonds toward a greater expansion venture. The governor says as a public university, is accountable to the state government and residents. Denise and king Nathan, and another round of spraying for mosquitos scheduled for Monday in New York City. As the number of west Nile cases grows, more on that from Bloomberg's Michael Barr. Denise this round of spraying will be in Queens and Staten Island and comes after previous rounds failed to knock out the mosquitos carrying west Nile virus, and the health department says stay indoors and close air conditioner vents if possible, people are also being asked to wash their skin if exposed to the pesticides and clear any standing water on their properties where mosquitos might breed. Denise. Thank you, Michael. And global news 24 hours a day on air and on Bloomberg quicktake. Powered by more than 2700 journalists and analysts in more than a 120 countries. In the newsroom, I'm Denise Pellegrini. This is Bloomberg. You're listening to masters in business with Barry riddles on Bloomberg radio. I'm Barry results, you're listening to masters and business on Bloomberg radio, my extra special guest this week is professor Anna admati. She teaches finance and economics at the Stanford graduate school of business. She was named one of Time Magazine's hundred most influential people in the world, and what a foreign policy magazine's top 100 global thinkers, she is the co author of the bankers new clothes, what's wrong with banking and what to do about it. So we already talked about borrowing and how that magnifies risk. Tell us some of the dark side of borrowing and what we should be doing about that. So the use of debt to fund things, meaning I give you money, then I get an IOU from you. Is pervasive throughout the economy. I mean, it's sort of a particular contract that gets signed all the time. And a lot happens by using debt funding, okay? And we seem to encourage it unnecessarily for buying houses or for funding corporations against other forms of funding. Well, when you say for buying housing, how else can you buy it? Well, it depends if you want to subsidize it or not. In this country, we subsidize home ownership only if you borrow through taxes. So we don't need that deduction. That deduction has doing nothing good. If you want to subsidize home ownership, choose the people you want to subsidize, and then for example, you can give them a little tax credit for their down payment. So in other words, instead of making the interest you pay on your mortgage deductible, you can make the down payment deductible and that would encourage. For example home ownership online. Yeah, but specific people, not the rich way, because right now housing subsidies. Even with poor people specific housing subsidies and vouchers that nobody takes and all of that. The most of the subsidies for housing go to rich people. The bigger the house is because the deduction of editor aggression and it's been capped in a lot of places. It's been capped, but it should be canceled and many countries don't have it. Now, for corporations across the world, the historical mistake was made to allow taxes to ability of interest where that funding is funding expense not a business expense should not be considered a business expense. We should not favor that over equity funding for corporations because they can always have access to their own profits and to investors because they are global. That's global. That's pretty global. It is well known that the tax bias of debt over equity is a distortion in the economy. Because that has a dark side. The dark side of that, I mean, I already mentioned this sort of addictiveness of debt at high levels. Which is especially true for banking because they are heavily indebted, fundamentally, and because they have all the safety nets that make their creditors more passive and that allow them to ratchet up the debt. So I have a theory paper that I learned a lot from called leverage ratchet. Effect. And Jonathan asked 2018. Anyway, so what's a dark side, you know, when I teach this and I also teach undergraduates and by the way, I'm not even teaching finance and economics anymore. I'm teaching so interdisciplinary that it's listed in political science and it sort of has a lot of law. It's very out of silo. It's very, very cost disciplinary. So I took my class out of the financial listing. It's kind of a general kind of class. It's called power in finance or business and government power and engagement, those kinds of courses where I start with like human rights and I talk about corruption and all kinds of words that usually are not to be heard in a business school. But anyway there, back to the dark side of borrowing of that, so as long as you keep your promise, everybody's happy. Okay? So there are different terminologies that are important to distinguish. There is the issue of default. What if you just don't pay? You promise and you don't keep your promise. Now, you know, stuff can happen. You might end up filing for bankruptcy, but bankruptcy is a legal process. So it has to be separated from default. It can happen before default, you know, PG&E file for bankruptcy companies filed for bankruptcy without defaulting to seek protection from their creditors. So a bankruptcy is like an illegal option that is for to kind of get from all the overhangs of debt that prevent you from breathing, okay? It's more of a full preemptive restructuring. It's supposed to be. It's supposed to be sort of forgiving enough for an individual again. It's like a fresh restart we're forgiving of taking too much data. But if you use it as a shield, like we discussed the sacklers, et cetera, or if you start spinning off a subsidiaries, it's going to take off your talcum liability if you are Johnson & Johnson using some two Texas two step trick or whatever or your Pfizer and they found you guilty of some fraud and you just put Pfizer. Yes, Pfizer. Ask judge wake up about that. Well, and he'll tell you the recidivism in the southern district. There are acidic corporations. He loves to give the example of Pfizer, even after the COVID. And he says they would keep coming back. They would be a deferred prosecution, so why would we keep deferring it? And then once I insisted they admit guilt, they sent the liability, the criminal liability to a subsidiary, and they failed that subsidy or completely continued. And does that shield the company from liability? And managed to find tricks to shield from liability all the time, or to just sort of shift the liabilities around kind of in between all the contracts and the covenants and all of that. So there's a lot of shielding going on. But in any case, that's if you're clever, if you are an individual or a small business, it's harder for you to play those games of liability shifting. Coming
The Trish Regan Show
Democrats Think More Spending Is Their Ticket Out of This Mess
"Back to what we're dealing with in the here and now. Lots more spending because some of the Democrats think this is their, this is their ticket. I'm sorry guys. This is going to be more of a problem, more of a disaster. And if anybody there really could understand this and I would encourage them to go take a tutorial there from Larry summers, former treasure secretary under Clinton, former head of the national economic council under Barack Obama. If anyone would pay attention to him in the Democrat party, I think he could really outline this for you and tell you what you're doing wrong. Because the Federal Reserve has screwed up royally, and now we've got lawmakers that are going to screw up again. Of course, Larry loves to spend government money. So he may disagree with that. But I think he'd be right on with the idea that the fed has. I know he is. Really messed up. So now we're compounding this. So you want to raise taxes at a time when the Federal Reserve is raising interest rates. Maybe that's because you want to reduce things all the more. I mean, it will have an inflation killing aspect to it. It will have a reduction in our economy aspect to it, but then here's the wild one you're going to throw in all this spending is what maybe they figure they can do it now. Maybe they figure this is our opportunity to pick our Friends. Our winner is here. We're going to spend $433 billion and guess what? It's going to go to all our Friends. I mean, that's what's so scary about all this. And I think this is why we're all so over it, right? Because we all know better. We all know that the government is there, picking their pals when they're handing out money like this. And this is what's disturbing because, again, it doesn't work. It never works. I mean, cylinder comes to mind, right? During the Obama years. So basically, they're just heaping insults on us. One after another, they're going to take our money. They're going to give it to those that they deem appropriate. Certain semiconductor companies, certain green energy companies, and we get nothing in return.
The Charlie Kirk Show
As We Predicted for Months on This Show, Crashflation Is Here
"Now heading towards a sequence of economic decisions of which many of you, young people, many students out there that are watching have never lived through. Now this will be completely different in my personal opinion than the 2008 financial crisis. The 2008 financial crisis was sudden. It was a shock to the system. I believe this will be a slow motion car crash. A series of bad news day after day, month after month, when after 6 or 9 months to say how the heck did we end up here? Former economic adviser Larry summer says there's a greater risk of stagflation which we call crash for some number of years than the market is currently discounting. Someone asked me the day, Charlie, how long is this going to take? I said it could take two to three years. You don't spend $7 trillion that you do not have on top of the $4.4 trillion. We're already spending from the federal government locked down an entire society inject it back into the country and act as if everything's going to be fine. You want to know why Bill Gates is buying farmland because he knows that when things fall apart, it's the only thing you're going to have left. Play
The Hugh Hewitt Show: Highly Concentrated
Andy Puzder Explains How Biden Caused the Inflation Crisis
"Andy, last night, Lee and Garrett and yesterday, Dwayne and I were coming back from lunch and then Uber, driven by Ali. And all he's a great black guy who is getting on my case. He's seen me on MSNBC and NBC, and I don't think he watches Fox. And all he says, do you really think Joe Biden causes inflation? I said, they spent $2 trillion that we didn't need to spend. Of course they did. And then they added on the infrastructure Bill. Of course they caused inflation. I don't know who they want to blame Putin. What do you think of that argument? Well, the argument that Biden didn't cause this is ridiculous. Larry summers came out, who was the Larry summers isn't like some far right Republican. You know, he's not going to be having lunch with you and Andy. This is a guy from Harvard who was secretary of treasury under Clinton. He ran the council of economic advisers for president Obama. He came out before they passed this $1.9 trillion bill and said, do not pass this bill. He came out in The Washington Post with an article that said, this will ignite inflation. You're going to end up with hyperinflation if you pass that. They pass it, and it ignited hyperinflation. Jason fuhrman, another leftist economist, said the same thing. Steve ratner, who was an Obama economist, said the same thing. Do not do not do this spending bill. They did it anyway. It ignited inflation, and it caused the current problems we're having. You know, look, if demand is way up and the fed's trying to bring demand down, don't spend money. What you could do, what you couldn't do to support the fed's efforts is try and increase supply. Because if supply and demand meet, it doesn't matter how high demand is. If we have enough supply to meet it, there's no inflation. That was the case under president Trump. Plenty of supply, plenty of demand. Now we've got this excessive demand and limited supply. Encourage the supply side. Reduce regulation. So businesses want to produce. This is the key to the key.
The Trish Regan Show
Talk About Messed-Up Priorities...
"A big week. And I think you're seeing some trepidation right now in the marketplace because investors are trying to say, okay, what's going to happen? What's going to happen to the stock market? When that reality kicks in, that the fed may not be done. I don't think the fed can be done. You've heard me say before I do believe we're in a recession, I think it's going to get worse because pay inflation still going on. Janet Yellen said it herself, you know, consumers are still spending consumer spending is still, well, if people are still spending so much, that means that you're going to continue having all this inflation. Inflation is starting to get embedded into the economy. You know that I believe inflation is actually a whole lot worse than the 9.1%. They've been reporting probably a whole lot more like 16 to 20% when it's all said and done and Larry summers, not exactly what you would call conservative. In fact, the guys worked for a whole bunch of democratic administrations, Larry summers, agrees with me, and Larry summers has written on this and said we are much more likely to see downside from the Federal Reserve trying to overcompensate, right? Like they did too much, and they did it too fast, and they did it for too long, and now they're like, oh, God, we have to freak out. And when they freak out and they raise rates as they will tomorrow, well, that has a bad effect on the overall economy. And so that's the position we now find ourselves in and yet nobody cares. Nobody cares because there's too many other things that are way too important. You know, when feeds a car, as I said, tries to give them a little bit of advice, the CNN guy who's carrying the Democrats water and said, look, you know, this isn't the issue that you should be focused on when even Hillary Clinton is saying, hey, this is not the issue. The gender stuff that you should be focused on, the furious. I mean, that's just amazing to me. They're totally furious and people the judge's husbands out there criticizing the CNN guy how could you how dare you? Look, we got real problems,
The Trish Regan Show
The Inflation Situation Continues to Be a Real Thorn in Our Side
"Situation continues to be a real foreign in our side, right? As a nation and as an economy. And it's an issue of whether or not the Federal Reserve can intervene and do so in a way that doesn't actually send us into recession. And I should say big recession because you know I've said before, I think we're already in recession. That's like, that's a fade accomplish. We are most likely in a recession right now when it's all said and done. That's what you're going to see. So the question becomes, how bad does it get in light of what the Federal Reserve thinks it needs to do? Larry summers, former treasury secretary under Bill Clinton, and also head of the national economic council under Barack Obama has been very outspoken on this. He actually has taken a lot of heat from his own party because he said all along that these policies have been tremendously inflationary and then the fed would step in and probably overstep its bounds and do too much in consequently put us into a challenging recession.
The Dinesh D'Souza Podcast
The Excessive Printing of Money Will Come Back to Haunt Us All
"So Tricia, I think what you're saying is that this is a little bit like, you know, letting your pressing down on the accelerator. That's the printing of the money. And then in the fed realizes we need to put the break on this and the way they do that is by raising interest rates, but you're saying if they do that too aggressively, the economy will plunge into a recession is that's the pain you're talking about, right? So what is called for here is a certain kind of fed discipline, but you're saying we can't trust the fed to do that because they seem to be more of a political animal than an organization that is focused merely on their economic responsibilities. Well, he got his second term, right? So hopefully he's trying to be more vigilant, hopefully he's trying to do what's right, and I'm talking about Jerome Powell for the overall economy, but look, I mean, they never should have done what they did. I give Larry summer's credit. Now, Larry summers is not exactly one to come out and criticize many Democrat administrations, considering he worked for two of them. Former treasury secretary under Clinton, former head of the national economic council, under Obama. So Larry summers actually, and he was ripped apart by his party, warned of exactly this. He said, look guys, you know what? You're printing too much money and it's going to come back to haunt you and chances are you're going to overreact as you try to rein in inflation and that will 85% chance for sure we get a recession. Here and into next, I think you're going to see more downside in the market. It's logical, people don't have as much money. They're spending it all on food and energy
The Charlie Kirk Show
Joe Biden Changes His Tune on Inflation
"Right when we're starting the show today, Biden starts talking about inflation. Starts has this big press conference. He's now saying, it's his number one priority. Cup 48, let's play it. The bottom line is this. My top priority is fighting inflation and lowering prices for families and things they need. Today's announcement is going to give millions of families a little more a little more breathing room to help them pay their bills so he says it's a top priority and that actually wasn't from the press conference today. That was actually from a day or two ago when he announced that it's now his top priority, but this is a change of tone for the Biden regime. What were they saying in July 2020? Let's play cut 57. I don't know anybody, including Larry summers, who's a friend of mine, who's worried about inflation. Talking inflation, the overwhelming consensus is going to pop up a little bit and then go back down. No one's talking about. This great, great deal. It's on highly unlikely that's going to be long-term inflation that's going to get out of hand. There's nobody suggesting there's no such inflation on the way. So there was a former president who once warned about Joe Biden saying, don't ever estimate his ability to really, let's just say screw things up. That man was Barack Obama. He warned us about this man, and there was another man named secretary Gates, defense secretary Gates that said that Joe Biden has been wrong on every single foreign policy issue in the last four decades. So why on earth would we suspect anything different when it came to the economy?
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Larry summers of Harvard in Neil Ferguson of the Hoover institution So let's pick up on this question about what the sanctions we've seen imposed on Russia might mean for the world monetary order Neil you wrote a terrific piece for Bloomberg I must say addressing this question in the possibility that it may change the world order the way prior conflicts and disasters have affected world order How do you see it this time Well wars and plagues change the monetary system It's not as if the monetary system is something that's the same over the centuries When the war broke out ten weeks ago a number of theories did the rounds both of the major theories were wrong Number one was well the Russians are going to get around sanctions using cryptocurrency And the other theory was while we've just done sanctions against the Russian Central Bank everybody is going to want to get out of dollars to be protected from future U.S. sanctions Well in fact it turned out that there was really no way in any significant scale that the Russians could evade sanctions with cryptocurrency probably aid to Ukraine in the form of crypto mattered more But even that's really quite trivial compared with the aid that the Ukrainians have got from the United States and its allies As for the dollar well I hardly need to tell you David that it's actually been extraordinarily strengthened in the last ten weeks particularly against some currencies like the Japanese yen But that doesn't really have a whole lot to do with the war I mean to some extent it does in the sense that in risk off situations people turn to the dollar but I think more importantly the fed is tightening and not all other central banks are keeping up with it So I think there were a couple of wrong theories I think the really interesting question to ask is not so much is the dollar one day going to be replaced by another Fiat currency I mean that debate has been going on throughout my entire lifetime It was happening in the late 1960s And I think it's the wrong question as long as there isn't a comparably large and liquid attractive currency At this point the only potential contender would be the Euro in terms of scale But I don't really see that challenge as being a successful one So the dollar is the dominant Fiat currency in the existing monetary system The question is does technological change in the advent of new forms of electronic payments.
The Trish Regan Show
Charles Thorngren, CEO of Legacy Precious Metals, on Inflation
"We've talked about inflation for quite a while now. And I think the scary thing about it is it's actually worse than we were actually talking about. I think you'll see that number jump into the double digits real soon. A quarter basis point here, a half basis point there by the fed. It's not enough and it's going to be delayed. They really don't have a choice, unfortunately. If they were to come out and say, we're going a full point, the equities market would be destroyed. And they can't have that either. No, they're terrified of that. That's clear. But you know, I'm looking at the fed and you and I both criticize them for their failure to act earlier, but now I'm like, guys, you know, they still don't get the message because they're planning these rate hikes, but you're right, Charles, it's not enough. Larry summers, former, ahead of the treasury, under Bill Clinton, former head of the national economic council under Barack Obama, not exactly in other words, you know, a conservative. He's out there pounding them and saying, listen, there's no way that they can avoid inflation at this point. It's there. It's coming because what are they going to do, Charles? I mean, suddenly say, okay, we're going to raise by a whole point, a point and a half. You and I know that's not going to happen. No. No. The only one who would have possibly done anything like that as long in the history books that would have been a president Reagan. It would have been the only one who had that kind of courage, but you're not going to see that now. And realistically, it's good that we don't. The economy is not strong enough for it.
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Is Bloomberg daybreak Asia It is a 3 a.m. in Hong Kong and here in Singapore I'm Juliet Sally And I've got prisoner at the Bloomberg interactive broker studio in New York We have trading underway in Tokyo Sydney and soul and a great deal of weakness right now in Japan and chairs of Olympus stock is down by more than 10% after the company missed a quarterly profit We'll take a closer look at the market action for you momentarily Right now a few of the showers top business stories Jules Well the fed might raise interest rates at all 7 remaining policy meetings this year This according to former US Treasury secretary Lawrence summers somers told us he also sees potential for an outsized rate hike Markets have to be prepared for a rate hike at every meeting and they have to be prepared for the possibility that as the inflation process continues we might need to have meetings with more than a single 25 basis point rate And Larry summer said the fed is behind the curve and anyone not open to considering that policymakers will boost rates through year end is underestimating the range of possibilities Meantime inflationary pressures here in the states are expected to continue building at the beginning of a 2022 We have more from Bloomberg susannah Palmer Economists we've surveyed say this week's data on the consumer price index for January will likely put a Federal Reserve interest rate increase next month on autopilot The consumer price index probably jumped 7.3% in January from a year ago the largest annual advance since early 1982 Excluding volatile food and energy categories the CPI is forecast to have risen 5.9% It all adds up to several hikes this year says Rick Ritter chief investment officer for global fixed income at BlackRock referencing fed chairman Jerome Powell It's pretty clear I mean there's no ambiguity from Powell at the last press conference CPI data is due on Thursday Susanna Palmer Bloomberg day break Asia Well China markets is it for mild gains on their returns from a weeklong holiday Bloomberg's Andrea Papua tells us what we'll be driving it The support primarily will come after Hong Kong stocks had a very good day on Friday There was some easing concerns around the tech also had banks rising So we expect Chinese stocks to open with some mild against But look a fairly muted open there are still headwinds for that market a weaker economy a property sector buckling under deck And China markets reopening Just under an hour a U.S. listed exchange traded fund tracking rather the benchmark CSI 300 gained 1.6% last week the most in about two months and as Andrea said we saw the hang seng index jump more than 3% in its first trading day post the lunar new year break But remember that the CSI 300 had fallen into a bear market and made a $1.2 trillion route just before the holidays We're also looking for action on how much the consumer spent And we're seeing from state TV that China lunar new year holiday saw 251 million domestic tourism trips over the period The China lunar new year holiday tourism trips down 2% year on year Remember this time last year China was in a pretty sweet spot They had their borders closed of course but they didn't have the omicron concerns and everybody domestically was traveling fairly freely As Doug mentioned was saying Olympus full 11% the most since March 2020 Japan's Niko two two 5 is down more than 1% in the early session You do have a slightly stronger yen holding at a 114 I think it's just dropped off my screen I'm sure Doug will correct me if I'm wrong there And we're looking at Australian fourth quarter retail sales rising 8.2% quarter on quarter which was above estimates for 7.8% gain We do have the ASX 200 down though by about 6 tenths of 1% in Sydney financials and real estate equities contributing the most to the benchmarks declined in On Friday U.S. markets finished higher The NASDAQ was up 1.6% and peloton shares surged more than 40% in post market trade This after The Wall Street Journal reported that Amazon has been speaking to advisers about a potential offer We're watching WTI crude 91 63 a barrel slipping below that 7 year high that it reached on Friday This follows a run of 7 consecutive weekly gains and Saudi Aramco also raised crude prices for March The yield on the U.S. tenure 1.9% was I write with the year One 1520 We're picking up a little bit of strength here but we were weak in New York trading Friday Did you mention the Australia retail sales I did All right just wanted to bake I know that's very important to you That's why I'm adding Adding that All right here we are 35 past the hours We update global news Rising talk of U.S. sanctions against Russia and a new wave of COVID cases not only in China but Hong Kong as.
The Larry Elder Show
Former Obama Advisor Critical of Biden Economic Policies
"Joe Biden's poll numbers continue to fall, and he's now being criticized widely on CNN and on places like NBC. Here's what a reporter said about his COVID response. There's a lot of concern among people who advise the Biden transition among former Obama administration officials, either allies of the president in this administration. But concern that the confusion and the messaging, the conflicting signals that are being sent are really hurting not only the president's credibility, but the CDC's credibility and that could make it even more difficult to fight this pandemic longer term. And this is a former Obama adviser named Larry summers, economists used to be the head of Harvard. Blasted the Biden's economic adviser who doesn't seem to think that inflation is going to last very long. When we talk with Brian, do you know him well from The White House this week? He said, well, really, this is the supply side problem. Once we get the supply chain fixed, it'll be all fixed. Is he right? No. He's wrong. We have a massive overheated labor market. We have the highest ratio of vacancies to unemployment in the country's history by a large margin.
The Hugh Hewitt Show: Highly Concentrated
How Larry Summers Makes Sense of Confusing Economic Signals
"Larry summers, who Democrats hell, he says build back better is good. No, he doesn't cut 14 on with Bloomberg, David's Weston's. I think it would raise the I think the inflation rate would be slightly higher in 2022 and 2023 with the build back better than it would be without the build back better. I think over the longer term, there might be some effects the other way. But I think over the next couple of years the economists say cetera's paribus, other things equal, it would raise no, no, Larry, just you've got to focus and execute with the Democrats. Build back better will make it worse for every American. The Wall Street Journal leads story. How do you feel about inflation? The answer will help determine its longevity because then patient feeds upon itself. Well, if the Democrats pass Bill back better, they do not care about you. They care about their special
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"Again to our very special contributor on Wall Street weekly as Larry summers of Harvard Larry we've talked every week really about inflationary concerns There's new data coming in And particularly I'll focus on the market data some of the break evens What is the new data telling you about where we are in inflation Unfortunately it's corroborating concerns I've had for some time You've seen so called break evens The gap in yield between nominal treasuries and real index treasuries take a break to the upside at the 5 year frequency for example it's up more than 40 basis points which is a very unusual move for one month And what it suggests is that people are getting more and more concerned about the possibility of rising inflation and inflation continuing longer First it was one year that it was two years Now it's starting to be 5 years It's even spilling over into the ten year And it's a reflection of a growing concern that this is going to feed through into wages that it's going to feed through into higher expectations which is going to create something of a spiral and that we're going to have a difficult inflationary dynamic It's not made any easier by the sense that because of the inflation consumer sentiment is turning down as inflation erodes people's real wages And that's going to make it that much more difficult to stop the inflation So I'm afraid that the kinds of concerns I've had for quite some time I think the basis for concern is steadily increasing So you mentioned wage inflation the possibility of it We have heard from the fed in the past that they're not as worried because their so called slack in the marketplace because there are a lot of people millions of people unemployed who were employed before the pandemic And yet there is a paper out of the San Francisco fed that you pointed out on Twitter this week and actually says that's not the number you should be looking at It should be how many job openings are there compared to women Look I think the view that there's a lot of labor market slack is looking preposterous right now You see the level of job openings record high far higher than we've ever seen before You see the number of people quitting their jobs to look for new jobs record highs Why is that going along with high.
600 WREC
"larry summers" Discussed on 600 WREC
"Host today on the EI Be network Way, took a call from Beth in the last hour from San Antonio. And she was pointing out a number of challenges that we're facing in the country right now, and was concerned that there was not an organized response coming back from the conservatives against the Biden administration against the Democrats and what it is that's going on here. So much about elections, and we're still 530 plus days out until the 2022 elections. But so much of what happens in elections are not commanded by what political party is arguing what it's about circumstances and we're starting to see a circumstance form that we haven't seen in a very long time. You're hearing analogies to the Carter administration. On foreign policy fronts on the cost of gasoline on the scarcity of gasoline, and, of course, on the eye word inflation. We're starting to see inflation in the economy, and it's becoming worrisome for a number of people. You try toe put a wooden fence in your yard. Good luck on buying lumber. Steel has gotten expensive. We got a call from someone yesterday on that very point inflation. Is beginning to manifest itself because we're pumping so much cash into the economy from the government coffers that we're borrowing that you've got too many dollars chasing too few of commodities. That are out there. And Larry Summers is one of these guys who's starting to raise this alarm. CNN's John Berman. Invited economist Larry Summers on a New day. And with John Burnin Berman and Briana Keillor yesterday morning. Remember Larry Summers is president emeritus at Harvard University Services, the 71st, secretary of the Treasury for President Clinton and the director of the National Economic Council for President Obama. He's sour on Biden's administration. Didn't hold back on. Why? When appearing yesterday morning to point out that the Biden camp is overheating the economy and causing inflation. I look at the facts and the amount of money we're putting into households hands relative to the capacity of the economy to produce. And I look at the serene complacency that we're in a new era on that we can increase the man almost without limit and that we're still trying to get inflation up that we're hearing out of Washington and I did. All of that together is much larger than the kind of extra physical policy we had in the 19 sixties. So, Berman then asks. What would you do about it? Now? If you were divided administration first, I recognize that our challenge right now is no longer insufficient spending. It's the economy overheating. Second, I'd support the efforts that many states air making to get people back to work by converting unemployment insurance into reemployment bonuses. But overall, this is heavily about expectations and psychology, and I think if we recognize that there is an issue at a problem, it may clear a policy commitment toe do. It's necessary to keep us in a world of stable prices. Those expectations can be self, the Philly But if we say there isn't any problem, and we can let it all rip with Papa see those expectations could be self fulfilling, too. So rush talked about this and demonstrated how liberals will use inflation. Montgomery County, Pennsylvania. This is this great to have you on the program, sir. Hello. Hello, Rush. Good afternoon. I think you're exactly right about the Liberals need for a crisis, and I think there's a little long term planning going on here. And whether it's next year the year after with the inflation crisis there deliberately inflating the currency through deficit spending and for monetary policy, But we're going to hear a couple years from now. That we need a greater social safety net for seniors because those on fixed income get adversely affected by inflation for the poor because the poor, universally affected by inflation. And we can't do with your deficits. Now we need to raise taxes. Exactly who have nailed it. Excellent way to go. You should apply for a fellowship here. You have just nailed exactly what's gonna happen. The Federal Reserve. I got a note from a professional golfer. Friend of mine. Who had just heard that the Federal Reserve is pump a trillion dollars into the credit markets and the professional golfer. So where were we getting this? I said, we are printing this. We don't have this. We're printing this money. 300 billion of it by the way to buy the long bond, which is causing bond price or bond yields to plummet. What else is gonna have with inflation without the dollar's gonna decrease, isn't it? Absolutely sory, Bob. So we're going to get exactly what you said. We're gonna have chaos. We're gonna need tax increases and increase social safety Net gasoline prices. By the way, the inflation is already starting consumer prices rose. 4/10 of 1% in February. That's the largest amount in seven months. Gasoline prices went up 8% and you're going to hear this is the need for the government to take over more role in energy and price of crude at the pump and every other factor they could get their hands on college education. The work Well, don't forget when it gets really bad. Then we'll hear the need for price controls. In fact, there already are some economists out there who are now starting to found the drums. For price controls. Of course, the the bourgeois love the notion of price controls, they think That means prices will remain steady. They are deadly. They are that one of the worst mistakes that could be made unless you're trying to just turn everything upside down economically. That would create a depression. If that's what they want. That's how they could do. So you hear Rush site a number in that conversation with the collar that consumer prices rose 4/10 of 1% in February was back in, you know, nine The largest amount in seven months. We'll look at the inflation number. Now. The data last week showed the consumer price index that's what it costs you to buy stuff jumped 4.2% from a year earlier. That's the fastest since 2008 since 2008 so the inflation is there and what happens Well, when you have price increases it gets handed down. The consumer. So the poor are the most hard hit by this inflation. You're a, uh, you're somebody who's earning $30,000, and you have a set amount of money that you could spend on your groceries. And and see what those prices are. They're moving. And labor costs are skyrocketing because you've got people who are attempting to hire people to work in their restaurants or the retail locations and their bidding against Joe Biden's government. Has Joe Biden's gonna pay him to the end of the year not to work. Don't top of that there. Also pumping out billions in universal basic income. This is a potential catastrophe in the making. Larry Summers is right, and I'm glad he's saying it. Is it shows he's being honest as it relates to the direction of this economy. Plenty more straight ahead. I'm Brett. Wonderful. Your guide host on the EI.
Raleigh's Retirement Coach
The Biden stimulus is admirably ambitious. But it brings some big risks, too.
"Stimulus plan. Now Congress Brian they're working on a $2 trillion stimulus plan economist Larry Summers. He was an adviser for the Obama administration. He thinks that's just too big, and it's gonna bring back more inflation, The top of inflation that we haven't seen in a generation. So, Brian a big stimulus package. Is this good or bad for our retirement planning? Well, I think right now the Simmons box. Obviously good rights, propping up a lot of businesses. Lot of liquidity out the market and you see the markets hitting new new highs almost on a weekly basis. We've got some volatility, but One of them's that Larry was talking about. He was a talk economic adviser for former president Obama. He warned President Biden's proposed covert 19 relief packages too big and it could overheat the economy. And it Z. Not the only one to say that. But Summers was Treasury secretary under former President Clinton. He wrote that the proposed $1.9 trillion Timmons could ignite inflationary pressures. Off a kind that we have not seen in a generation and went on to say that Hey, this risk of inflation could have consequences for the dollar and financial stability in general and said stimulus measures of this magnitude contemplated our steps into the unknown. His remarks are really notable because Biden has received almost no pushback from Democrats in pursuit of his legislation. He has begotten a little bit on the Republican side of the aisle. But some progressives have griped about by did not go Big enough. Believe it or not, But Democrats are largely united behind the bill. But what's really interesting with this is that he's getting and hearing from the same side of the aisle for people that aren't in Congress that saying, but historically served under Democratic presidents and saying, Hey, this is probably a little bit too much Republicans have been, you know, kind of saying that, but it is going to jump start our economy. There's no doubt this is going to increase spending is going to prop up our economy. But it is probably going to lead to inflation of what we haven't seen in terms of the level in quite some time, right. But you mentioned the common, you said, overheat the economy to find that for me. Well, it's not real growth is not genuine growth. It's basically artificially induced by all the money that we're printing prior to cove in 19. Our economy was cooking on all levels, and but there was nothing that was stimulating that we had good growth. Independence on energy manufacturing was up real estate. But now, ah lot of the stuff that's being supporters being supported by government dollars While we need to get these businesses propped up and we need to give businesses open and things like that the amount of money that we're printing And pumping into this economy. It's going to inevitably lead to inflation it it has to when we're printing this much money as we are, and all I'm saying is, it's overheating because it's not real, in terms of where we were a year ago with this time, Hey, that was a lot more legitimate before the government basically just pulled the breaker on the whole economy and You know and manually shut it down. So do we need t Get back? Yeah, absolutely Do we need to keep putting this much money into it? I think it's going to depend on on where you're sitting right now. Right? If you're a technology, and you're here Cos been going great. And it's okay to work remote from home. That's great. If you're a restaurant guy he's been, you know, operating at 25% capacity and you were closed for out of the past eight months, because hey, I need I need to pee Pee pee plan I need Relief for my employees, So it really depends on what side of the island and you know where you are in the spectrum of how this pandemic has impacted you from a business standpoint from a personal standpoint, and that's not equal for everybody for sure. Okay, Michaela, I
NPR's Business Story of the Day
Lawmakers Debate Biden's $1.9 Trillion COVID-19 Relief Plan
"The right amount of money to get americans through a few more months of the pandemic president biden is hoping that congress approves covid relief. Now that they're done with impeachment. A lot of the money would finance payments to americans. Fourteen hundred dollars for most people city states and schools would also get some money earlier this month. The white house economic adviser. Jared bernstein said people need it all. We have to hit back hard. We have to hit back strong. If we're going to finally put this dual crisis of the pandemic the economic pain that it is engendered behind us as you may have heard. The administration is asking congress in total for one point nine to really dollars. It politely turned down a call by some republican senators to spend less but economists still have questions about the price tag. So let's talk this through with npr chief. Economics correspondent scott. Horsely morning. good morning steve. Why would there be doubt about one point nine trillion. It is that price tag one of the most prominent critics is larry summers. Who was treasury secretary. In the clinton administration he was also an economic advisor to former president. Obama summers told. Npr's we edition. It is important for the government to go big but maybe he says not this big. If your bathtub isn't fall you turn the faucet on but that doesn't mean you turn it on as hard as you can and as long as you can. The question isn't whether we need bake stimulus. The question is whether we need the biggest stimulus in american history summers whereas spending this much money on short term relief would make it harder for the administration to the kind of long term investments. That it wants to and things like infrastructure. He's also worried that a rescue package. This big could overheat the economy and trigger something. We haven't seen in a long time. Steve inflation well. How worried if it all is the administration about inflation. The administration is a lot more worried about the people who've lost jobs in about the parents who can't work because their kids are in school The latest congressional forecasts predict. It will be twenty twenty four before we get back all the jobs that were lost last year and the administration says that's not good enough treasury secretary. Janet yellen told cnn. She thinks the us could be back full employment next year. If congress passes the president's rescue plan and keep in mind Yellen used to be the chair of the federal reserve where inflation was a big part of her responsibility. I've spent many years studying inflation and worrying about inflation. And i can tell you. We have the tools to deal with that risk if it materializes but we face a huge issue comic challenge here and tremendous suffering in the country. We've got to address that. That's the biggest risk. Let's ask about the reassurance. She offers there when she says we have the tools to deal with the risk of inflation. What she mean traditionally when the economy overheats and that causes a jump in prices. The fed tries to cool things off by raising interest rates and for decades. The fed was really aggressive about that sometimes. Raising rates preemptively. Just in case prices might go up but now the central bank has really changed. Its thinking about that. In recent years we saw unemployment can go a lot lower than many people expect without overheating and triggering inflation and that was really good for a lot of people especially those at the bottom of the income ladder so the current fed chair. Jerome powell says he's just not to worry about inflation even though he says we could see some temporary price hikes later this year if the economy reopened is there's quite a lot of savings on people's balance sheet you can see strong spending growth and there could be some upward pressure on prices. My expectation would be that that that will be neither large nor sustained for a long time. Now inflation has been lower than the federal reserve would like it to be and the central bank says it will only raise interest rates once we get back to full employment and inflation has been running above two percent for a while scott. Thanks for the insights. Really appreciate it. You're very welcome.
KCRW
"larry summers" Discussed on KCRW
"Right now than the cost of doing too much interest rates are really low. If the government borrows and spends too much money, it's just not that big a deal economically. Are you concerned that that's going to cause interest rates and inflation to go up? What's what goes wrong if we send out too much money? Look, I am concerned that we have run up literally trillions of debt over the last year and I thought that a lot of that was justified. We were in an emergency interest rates are low. But you know, the United States does have toe. It's not like a mortgage. It's not like an individual mortgage, where it advertises over time, and at the end of the loan, you paid it off. The United States has to roll over its debt periodically and when it does if interest rates have risen Um Then, if people are less confident that the United States is unable to repay its debts, then it gets more expensive and you can get into kind of a fiscal crisis really fast. And the problem with it? Is that you? It's actually very hard to see coming until suddenly it's upon you. Um the economist Rudi Dornbusch had a great quote about this. We're about the Mexican currency crisis. In the eighties, where I said it took forever And then it took tonight is that you were everyone said, Well, something should happen. But nothing is. I guess it's okay. And then it really wasn't okay. Very suddenly on DSA. Oh, I do worry about something like that eventually happened in the U. S. When is eventually I don't know. Could be 10 20 years And maybe that's too long to worry about. David Larry Summers has been raising a version of this objection, mostly to a chorus of boos from from Democrats. Do you? Do you see any downside? Tioga going too big here? I mean, I think Summers is concerned is basically that if you do too much now it's going to take up space that limits what you can do later in the year when there might be an infrastructure package or other spending. That's focused not on immediate relief, but long term investment in the economy. And so that could be either through Ah political channel. We're basically you use up the willingness to do borrowing and spending or I mean, it doesn't have to be a currency crisis like Meghan describes there. But if you if if the borrowing does have effects that lead to higher interest rates than maybe the political environment around borrowing Becomes less favorable because of that, because it's more expensive to borrow, and then it interferes with the ability to do the infrastructure package. Do you worry about that role? It's not going to surprise you that I disagree with Larry Summers s O. I have been hearing about the inflation boogie Man being just around the corner since the great recession and we we just haven't ever reached that corner. This is never Been a problem in the last decade, and I don't suspect that it will be in in the future that the interest rates are on debt service as a percentage of the overall dead is that a pretty historic low interest rates are very low right now, and that that is a good time to borrow, so What What Summers is saying is that we're going to crowd out future needs in terms of public investment. Things like infrastructure. There is a plan If you talk to the Biden people to do that package with the second reconciliation bill that you were talking about on keep in mind that the entire Biden tax plan Which would reverse many of the trump tax cuts to the tune of trillions of dollars is also on the table. So I'm not even sure that that very large infrastructure plan will even be. You know, I think a lot of it will be offset. So it just doesn't seem like this is a constraint and you know, then we get into this issue of targeting, which has been a big topic of discussion this week. The Biden team is considering making the eligibility the means test on these direct payments much tighter. It's based on Cem Cem Research by Raj Chetty on others who show that that money wasn't immediately spent on the last stimulus check. To me. That doesn't really tell you much of anything. It doesn't mean that that money wasn't useful to those individuals. And maybe they spent at the end of the month just because they didn't spend it the day that they got it. Doesn't mean that it wasn't helpful on bigger problem here is that the federal government does not have the data right now to actually target very well. We're going to put out these checks based on 2019 tax data, because that's all we have at the moment until the 2020 taxis and opens And what that means is is that that's pre pandemic and we're going to say that if you made $50,000 a year in 2019, that's the cut off even if you lost your job in March and didn't have it for the rest of the year. If we really want to do this with targeting and making sure that the money only goes to people who really, really need it. Why don't you give everyone a check now and then clawed back in in the next tax year, using the correct data of what people actually earned that? That seems to me to be the only fair way to do this? I want to ask a little bit about the inflation boogie man because I I have not been very worried about this for the last decade, and I'm not very worried about it now, but we have seen over the last year that inflation expectations have continued to take up. If you look at the 11 market way to look at this as you compare the interest rates on 10 year government bonds to the 10 year government bonds that are adjusted for inflation and get a sense of what what people expect that inflation rates will be over the next decade. That number keeps going up. It's now over 2% around 2.2, which obviously is not is not a real high number. Um it's a little bit higher than the feds inflation target. The Fed has said that it wants to allow inflation to run. Somewhat above its target for some period, So I don't think this is a worrying now. But David, I'm just wondering if if that continues to go up and at the margin, you know the more deficit spending you do that should put upward pressure on that, especially with the Fed being so accommodative. Does there need to be a political plan about what to do if inflation does come back for the first time in so long?.
Bloomberg Radio New York
"larry summers" Discussed on Bloomberg Radio New York
"In the world through the eyes of the most in Influential voices. Larry Summers, the former Treasury secretary. Stomach CEO, Kevin Johnson, SEC chairman. Jay Clayton Bloomberg Wolfe Street Way David Westin from Bloomberg Radio. Gamestop Circus moves on, and investors turned the hopes of more help from Congress and have more vaccines on their way. This is Bloomberg Wall Street Week. I'm David Weston. It seemed as if everyone in America with access to a microphone has been telling us this week with stunning hindsight. Precisely why the Dow Jones industrials took a record 508.22 point 6% nosedive Monday. Time alone will fell with the Black Monday enters the history book. As the day American confidence was so shaken Premature recession resulted. That was Louis Rukeyser on Wall Street Week Back in 1987. After black Monday. Markets have been shaken again over the past two weeks as Reddit Day. Traders boosted shares of companies like Gamestop and sent short selling hedge funds running With long short funds losing 6% overall last month, and Melvin Capital alone plummeting 53%. But most hedge funds emerged unscathed. And Steve Cohen's 0.72 even attracted $1.5 billion in new money. Here's sweet that Ramachandran, GAM investment manager, I seem hedge funds are probably reluctant to short small cap stocks right now, if the fear that the Reddit brigade might be behind those, But by early this week, game stops to the moon rally started to come back toward Earth, and not even the reddit flash mob or changes the top of the company. Could get the irrational exuberance going again reminding us why hedge funds at Taylor's target companies like Gamestop investor that gets caught in the updraft on that and doesn't understand that investing well, it looks like it's all going up to the person to click the last by understand that that could happen to them that quickly. That's former e trade financial CEO Carl Rossner. I asked Council on Foreign relations Senior fellow Sebastian Mallaby. If anything will fundamentally change in the hedge fund world. I don't Really? I mean, I think that hedge funds which of course goes back to the sixties, at least have proven to be an amazingly robust platform from which to think creatively about risk. Ondo. They adapt. You know, they get new stuff. Yes, straight in their ways when they began, there was no such thing as trading currencies because turned his world fixed it together one mark. It's hardly existed. You have to trade stocks by appointment on. They adapted all the way through that as everything changing your fintech thea advent of reddit the advent of Robin Hood. This is just the latest iteration in a long, long history of financial innovation, and every time hedge funds figure it out. You also have regulators trying to figure it out as it were, after the fact we have the Treasure Secretary Janet Yellen now saying She's meeting with regulators, saying, We need to take a hard look at this about the volatility and whether this might actually put in jeopardy. Some investors. We also have hearings in Congress coming up. Do you expect there might be some tweaking, at least to the regulations? I think with respect to Robin Hood on the fact that it had to close down Access to trading on certain stocks. That's the kind of market interruption which regulators order take action on. You need the infrastructure of trading to be reversed you, you know you need to look at the plumbing and some regulators put it on. So I think that part of the system will definitely because of fresh look. What about on the short selling side? There have been proposals as you know, well, For short sellers have to disclose their positions. Individual positions, which is done is I understand in Europe, Do you think there might be a renewal of that call? And by the way, why do we have to disclose on the long side and not the short? I'm not sure, actually, that hedge funds do disclose on the long side unless they buy more than Disposable fresh other believe it's 5% of something off the company so you could get away with a lot without disclosing. I think you know when you Taking a really big position. Probably there's it becomes a systemic threat to you. You know, you might blow up if that position where to go very badly wrong on so regulators who care about the soundness of the system ever all Have a legitimate interests, but I think it's more positions shouldn't have to be disclosed, But we certainly had some large which ones who took a big hit on. I wonder whether that did suggest it could be systemic risk here. Well, the beauty of hedge funds is that through their long history Have proven to be smart enough to fail. Not too big to fail, they actually could blow up and people often say Long term capital management in 1998 Aziz. The big exception actually, if you go back and look at that incident The New York Fed convened the banks to recapitalize it, but no taxpayer money zero went in. So freestanding hedge funds are not counting here, the subsidiary of Bear Stones that went wrong in a rate Freestanding hedge funds have never had a taxpayer bailout mills in capital has not needed to taxpayer bailout. That's the good thing about hedge funds. That's one of the ironies you point out in your washing. Post column Actually, that Unready. People were saying Look at the government bailed out these hedge funds. In fact, they didn't get bailed on 8 4009 it all pretty much. Everybody did edgy and insurance, all sorts of broker dealers like, you know, Best dance and Lehman Brothers went wrong. The money market sector. The whole thing went wrong. But there isn't an example of a freestanding hedge front that needed a bailout. You mentioned Robin Hood and its role in all this. The fact that I had to curtail trading at one point is there room for requiring larger reserves coming out of to his nature has a nine Well, I think it's fair to say the banks had to have larger reserves to protect the system. Overall did this suggests. That particularly becomes the things like sort of flash mob phenomenon and social media may be the broker deals have to have larger reserves. Yes, I do think that I think particular need The newer brokers like Robin here, it which of the matched on the West Coast there, fintech that not a kind of traditional Wall Street firm on those guys have often. Growing so quickly that the regulators of behind the curve on so I think that is the legitimate, you know. Focus flux from the government. Thanks to Sebastian Mallaby of the Council on Foreign Relations Coming up Big Tech. It's big earnings. But.