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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along

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Speaker 1: with Jonathan Ferroll and Lisa Brownowitz Jay Ley. We bring

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Speaker 1: you insight from the best and economics, finance, investment, and

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Speaker 1: international relations. Find Bloomberg Surveillance on Apple Podcast, Suncloud, Bloomberg

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Speaker 1: dot Com, and of course on the Bloomberg Tournament we

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Speaker 1: sharply digressed. David Rubinstein joins us the Carlisle grew up

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Speaker 1: on fire with some recent interviews of course peer to

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Speaker 1: peer conversations with Mr Rubenstein, and I really want to

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Speaker 1: focus on the hockey player from Belmont Hill for those

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Speaker 1: of you that are in the know, that is really

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Speaker 1: good prep school hockey, and then onto Princeton and r OTC.

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Speaker 1: David Rubenstein. The path of General Miley to the top

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Speaker 1: of the Pentagon pecking mortar was most original, wasn't it.

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Speaker 1: It was We've never had a person service Chairman of

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Speaker 1: the Joint Chiefs of Staff who had an undergraduate degree

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Speaker 1: from an Ivy League school. Um, he didn't expect to

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Speaker 1: spend his entire career in the military, but it worked

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Speaker 1: out that way, and he's from a military family. But interestingly,

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Speaker 1: his father did not want him to go into the military.

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Speaker 1: His father really tried to keep him out of the military.

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Speaker 1: How has he colored in his service colored and infantry

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Speaker 1: by the fact that his father truly was on the

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Speaker 1: shores of yo Jima. Well, his father was a real

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Speaker 1: combat veteran in the South Pacific in World War Two.

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Speaker 1: But his father knew the horrors of military combat and

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Speaker 1: he tried to keep his son from going to West Point. Uh.

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Speaker 1: He went to Princeton on a Hockey scholarship effectively hockey scholarship,

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Speaker 1: and but he got into r OTC and ultimately say

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Speaker 1: stayed in the military. It's an unusual story. And he's

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Speaker 1: obviously become one of the most visible of all the

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Speaker 1: chairmans of Joint Chiefs of Staff because of things that

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Speaker 1: happened during the Trump administration. David China was very much

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Speaker 1: front and center with his interview, as it rightly should

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Speaker 1: be a ringing too many people out there. What is

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Speaker 1: the different nature of this rivalry, of this potential cold

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Speaker 1: war given the fact that the strategic nature is China

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Speaker 1: frankly provides so much the United States by way of goods.

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Speaker 1: General Milly said that the biggest security threat to this

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Speaker 1: country is China now Historically, when I was growing up,

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Speaker 1: it was Russia, and Russia is still a threat, he said,

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Speaker 1: In the course, there's North Korea. But in the end,

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Speaker 1: China has the the money and the manpower and the

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Speaker 1: technology skills to really be a complete rival to us.

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Speaker 1: And he was very worried about the hypersonic missile, for

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Speaker 1: which there was a test not long ago. Now we

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Speaker 1: probably presumably are developing our own hypersonic sonic missile. It's

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Speaker 1: not been discussed publicly, but this is a missile which

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Speaker 1: could um launch a nuclear weapon on us without any

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Speaker 1: real defense that we currently have. So how separate are

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Speaker 1: the military concerns that the United States has with respect

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Speaker 1: to China from the business concerns, especially as a growing

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Speaker 1: number of corporations in America are trying to increase their

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Speaker 1: footprints in Beijing in the mainland. While the business community,

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Speaker 1: I think is interested in getting all those customers and

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Speaker 1: developing relationships in China. But we have to be very

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Speaker 1: careful in the business community because we recognize that China

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Speaker 1: is now making more difficult for American companies to invest

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Speaker 1: there or operate there, certainly more difficult than it was

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Speaker 1: a couple of years ago. The military is more concerned

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Speaker 1: about China as a threat and less interested in getting

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Speaker 1: into China than making certain that China doesn't get into

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Speaker 1: the United States. David, and talking to the general and

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Speaker 1: also within your own international view, one of the great

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Speaker 1: mis calls that you and I and everyone else had

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Speaker 1: was our dearth of intelligence on Russia when the Soviet

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Speaker 1: Union collapsed. Do we actually have good intelligence on the

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Speaker 1: Chinese military? I think our intelligence is probably not as

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Speaker 1: good as people would like it to be. I don't

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Speaker 1: really know the intelligence communities assessment. I think our ability

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Speaker 1: didn't know what's going on North Korea is very very limited.

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Speaker 1: I think our ability to know what's going on in

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Speaker 1: China is probably better, but not necessarily with the Chinese military,

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Speaker 1: because it's difficult to infiltrate, and so you have to

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Speaker 1: rely on on technology and things like that, and sometimes

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Speaker 1: it's hard to get technology that's going to pick up

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Speaker 1: exactly what's going on in China. As you point out,

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Speaker 1: we underestimated exactly some things that were happening in Russia,

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Speaker 1: and we overestimated other things are happening in Russia. And

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Speaker 1: we've had a lot of technology failures in in in

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Speaker 1: the Middle East, with the are in ability to know

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Speaker 1: what was really going on in Iraq for example. And David,

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Speaker 1: it's so important that Tom asked that question because it

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Speaker 1: really dovetails the two issues of the business community and

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Speaker 1: the military community. How do you get visibility? Well, there

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Speaker 1: are people who are represent the United States in some way,

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Speaker 1: shape or form on the ground there. How much is

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Speaker 1: this a concern for business executives you speak with in

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Speaker 1: terms of how much surveillance they're under, what type of

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Speaker 1: regulation there might be from the United States government because

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Speaker 1: of that suspicion that they are the note of information

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Speaker 1: one way or another. While the business community has been

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Speaker 1: warned that it as it operates in China, everything could

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Speaker 1: be bugged and everything could be stolen away in terms

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Speaker 1: of intellectual property, the Business Committee is wary about dealing

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Speaker 1: in things in China. But on the other hand, there

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Speaker 1: are a lot of customers there and there's a lot

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Speaker 1: of businesses there, So people are warned. They try to

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Speaker 1: be careful, but nobody can be perfect in terms of

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Speaker 1: our ability to protect certain information. David, with your success

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Speaker 1: and I and I mentioned this, folks, because this peer

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Speaker 1: to peer conversation occurs in front of our three most

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Speaker 1: important documents at the National Archive. David, you brought the

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Speaker 1: Magna Carta to America, the twelve nineties seven document itself.

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Speaker 1: Tell us a little bit about that quickly, What was

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Speaker 1: it like to give to America the Magna Carta. While

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Speaker 1: they're seventeen extant copies of the Magna Carta fifteen in

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Speaker 1: British institutions, one of the Australian Parliament, this was the

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Speaker 1: only one in private hands, and I put it there

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Speaker 1: on permanent display and permanent loan. And essentially it's a

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Speaker 1: document that was a warm runner of the Declaration of Independence,

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Speaker 1: so it really in many ways had more impact in

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Speaker 1: this country than ironically it did in England. That's why

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Speaker 1: I thought it should stay here. Unbelievable to see that

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Speaker 1: at the National Archive, and of course, folks, you can

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Speaker 1: see it at the British Library. John, I know you've

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Speaker 1: done that, the British Library Museum. Just extraord wonderful. Love it, David,

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Speaker 1: Thank you, Thank you so much, David Rubinstein. That catch

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Speaker 1: the full interview, A fascinating interview with the General Milly

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Speaker 1: on the David Rumistice Show, Pit to pit conversations. But

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Speaker 1: the Democrat a Republican. One thing I know for certain

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Speaker 1: is later in the Trump administration all agreed that the gentleman,

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Speaker 1: the movie producer from Goldman Sex rose to the occasion.

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Speaker 1: He is the former Chancellor of the Exchequer of the

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Speaker 1: United States and he is in Rio. Yusuf Kamal l

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Speaker 1: Dean joins us now with a conversation with Chancellor Minution

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Speaker 1: usef good morning, Hey Tom. I mean, for once, it's

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Speaker 1: not all happening in New York. People all around the

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Speaker 1: old CEOs and government officials come out here to read.

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Speaker 1: And one of them, of course is Steven Newts, and

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Speaker 1: he's the founder at Liberty Strategic Capital. Thank you very

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Speaker 1: much for joining us. It's a secretary. Give me a

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Speaker 1: bit of an overview then, all the kind of meetings

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Speaker 1: you've been having and what have you been able to

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Speaker 1: secure any new deals. Well, first of all, it's great

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Speaker 1: to be with you, and it's great to be back

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Speaker 1: in the region. Uh. My focus here is really to

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Speaker 1: be supportive to the economic transformation in the region. Uh.

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Speaker 1: It's it's very important, I think for economic stability that

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Speaker 1: all these countries transform their economies and expand them away

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Speaker 1: from just energy. You raised two point five billion dollars

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Speaker 1: in private equity investments. Did some of it come from

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Speaker 1: the likes of the public Investment Fund? Well, I can't

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Speaker 1: really comment on our raising of funds. What I can

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Speaker 1: comment on is what we're focused in doing. So our

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Speaker 1: real focus is right now on technology, with a big

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Speaker 1: emphasis on cybersecurity, national security, and data priv to see,

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Speaker 1: which was an area I focused on when I was

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Speaker 1: Treasury Secretary. I was responsible for cyber for all the

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Speaker 1: financial services, and it's a very big risk. So we

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Speaker 1: want to make sure that companies and governments are are

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Speaker 1: taken care of and protected. Let's get to the macro

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Speaker 1: story for a moment, because the last time you discussed inflation,

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Speaker 1: you said you were worried. Now quite a bit more

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Speaker 1: data has come through. How has that view evolved since? Well,

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Speaker 1: I was worried because I thought we'd see inflation. We

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Speaker 1: have seen it. I think you know, we're we're running

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Speaker 1: probably in the four to five percent inflation. My guesses

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Speaker 1: will stabilize closer to three and a half, but that's

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Speaker 1: that's still a significant issue. For a long time, the

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Speaker 1: Federal Reserve was concerned that we couldn't get inflation up

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Speaker 1: to two percent, but now, just given the enormous amount

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Speaker 1: of fiscal and monetary support, I am very concerned that

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Speaker 1: we're going to see higher interest rates and the impact

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Speaker 1: on consumers and antenue it treasury yields those still go

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Speaker 1: to three point five because that's what you said last

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Speaker 1: That's that's still my prediction. Okay. What about the ability

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Speaker 1: of the United States to grew itself out of three

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Speaker 1: and post pandemic debts and the massive amounts of money

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Speaker 1: that it's borrowed. Well, look, there's no question that during

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Speaker 1: this crisis we needed to have massive support. And I'm

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Speaker 1: most proud of the fact that we passed to the

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Speaker 1: two Cares bills to zero and a hundred to zero

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Speaker 1: in the Senate. That was pretty extraordinary. Uh, we spend

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Speaker 1: four trillion dollars. I never thought I'd be saying those

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Speaker 1: words four trillion dollars. I think we needed to spend

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Speaker 1: that money where we would have had a global depression,

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Speaker 1: not recession. But the new administration has continued to spend

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Speaker 1: another two trillion dollars, now more money. I'm very concerned

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Speaker 1: about the size of the national debt at twenty a

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Speaker 1: half trillion today, I worry it could go up to

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Speaker 1: thirty two trillion on a twenty three trillion dollar economy.

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Speaker 1: It's quite concerning. I want to stay with the fiscal

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Speaker 1: sign of things for a moment because the Democratic tax

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Speaker 1: plan has been controversial to some. Uh the billionaire taxes,

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Speaker 1: it's also called. Do you think that the it's a

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Speaker 1: good plan with a pass Congress. Well, let me just

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Speaker 1: first say, I think now is the wrong time to

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Speaker 1: raise taxes on anybody, whether it's billionaires or average consumers

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Speaker 1: and spend. I think we've done plenty of spending. I

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Speaker 1: think the problem with the billionaire taxes one, it probably

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Speaker 1: won't raise much money since a lot of this money

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Speaker 1: will be given away to foundations. Uh, so it won't

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Speaker 1: be taxed. The other issue is it's probably unconstitutional. And

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Speaker 1: the third issue is it creates very very bad incentive.

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Speaker 1: How do you tax public securities and not private securities?

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Speaker 1: Think about this. It's a complete disincentive to grow your business.

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Speaker 1: To basically say every year the government will take a

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Speaker 1: little bit more of your business away. That's not the

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Speaker 1: right incentive for long term investing. A shout out to

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Speaker 1: Tom Keene for this quest, and he is looking to

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Speaker 1: find an answer on whether there's gonna be an opportunity

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Speaker 1: for Republicans in twenty four to reassert a calmer policy

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Speaker 1: out of the prison camps, out of what the present chaos. Well, uh,

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Speaker 1: you know, well, we'll see. It's uh, it's it's politics,

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Speaker 1: you know. My guess is a lot of things will

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Speaker 1: change over the next couple of years. Again, my biggest

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Speaker 1: concern right now is we need less spending and we

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Speaker 1: need to worry about making sure we don't have inflation

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Speaker 1: out of control and the national debt is sustainable. We've

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Speaker 1: seen a US bend on a on a China telco

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Speaker 1: in many ways. One would have thought that some of

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Speaker 1: the tension between China and the United States would ease

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Speaker 1: a little bit with a new administration and a new

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Speaker 1: approach community. That hasn't happened as fast, was not happening

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Speaker 1: at all. Have you been surprised about how this is evolved. Well,

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Speaker 1: let me just say, Ambassador Leidheiser and I spent a

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Speaker 1: lot of time going back and forth to China. I

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Speaker 1: think we probably had twenty different meetings with the Vice Premier,

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Speaker 1: and I think we're proud of the work we did

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Speaker 1: on the Phase one trade agreement. My own opinion is

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Speaker 1: a lot work, more work needs to be done, that

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Speaker 1: there should be more dialogue as it relates to telecom. Look,

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Speaker 1: I think there's certain areas that are national security areas

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Speaker 1: at least as it relates to certain telecom equipment, and

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Speaker 1: I'm not commenting on the specific of this. We want

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Speaker 1: to make sure that our data integrity. On the other hand,

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Speaker 1: these are two large economies that have to coexist, and

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Speaker 1: I think the work work needs to continue to be done.

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Speaker 1: On trade. China has always had the opportunity to have

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Speaker 1: the US markets open, and we need to make sure

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Speaker 1: we have the same reciprocal opportunities. We have to do

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Speaker 1: it there. Thank you very much for the time. That's

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Speaker 1: Steven Newton is the founder of Liberty Strategic Capital TAM

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Speaker 1: and the rest of the team. Thank you, sir, Thank

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Speaker 1: you very much as always, catching up with the fulm

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Speaker 1: of trenchery. Secretary that step yeah, to find out what

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Speaker 1: Industrial America is doing and what is so advantageous here

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Speaker 1: is David Weston and I. We didn't look at the

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Speaker 1: first generation corvette. We looked at the second generation corvette

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Speaker 1: and said someday we'll own one of those. And there's

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Speaker 1: a new one to you that I'm sitting at home.

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Speaker 1: Thank you so much. To Tom Keane, we're delighted if

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Speaker 1: you joined right now. By General Motors chair and CEO,

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Speaker 1: Mary Barrow, they had their third quarter earnings out today, Mary,

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Speaker 1: thank you for joining us. First of all, congratulations, you

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Speaker 1: did a lot better than most people thought you'd do.

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Speaker 1: I don't want to take anything away from that, but

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Speaker 1: can you give us some sense how much of its

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Speaker 1: core operations I don't have some financing because of used

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Speaker 1: car sales that really were on a tear, and also

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Speaker 1: reimbursement for that bolt recall. Well, I think it was

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Speaker 1: it was all of those things. I mean, g MF

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Speaker 1: is performed very strongly. We also saw, you know, in

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Speaker 1: light of the current environment China, our China earning equity

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Speaker 1: earnings were strong. But I think what the real story

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Speaker 1: is is how how well we perform from trucks and

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Speaker 1: full size SUVs. We're selling every vehicle we can make,

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Speaker 1: and I think that along with uh uh, you know,

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Speaker 1: the overall environment is what allowed us to have a

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Speaker 1: beat for the quarter. And you know, I think it

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Speaker 1: shows the strength of our underlying business. So I'm really

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Speaker 1: proud of the team and everything that they accomplished. So

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Speaker 1: the magic words there for me where everyone you can

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Speaker 1: make because you can't necessarily make all the ones you'd

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Speaker 1: like because of the supply chain problems. We've talked about

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Speaker 1: it before. I know that it's continuing into next year.

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Speaker 1: I guess my key question for you, Mary is is

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Speaker 1: there anything at this point that can be done to

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Speaker 1: speed up the time that you can get the microchips

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Speaker 1: that you need. Well, you know, we're seeing improvements in

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Speaker 1: fourth quarter. We had indicated that Q three would be

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Speaker 1: the toughest for us, which is and that it was

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Speaker 1: further impacted by COVID, But we're seeing strong, stronger performance.

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Speaker 1: Now we'll have a Q one will be better than

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Speaker 1: Q four. It will linger into next year and we're

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Speaker 1: right now are are feeling as will be UH in

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Speaker 1: a much better shape in the second half of two.

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Speaker 1: And we're also taking steps over the medium term to

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Speaker 1: make sure we're never seeing this kind of constraint, not

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Speaker 1: only with chips, but with other you know, whether it's

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Speaker 1: critical materials or just the overall supply chain. Because we

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Speaker 1: have an aggressive growth strategy in front of us, and

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Speaker 1: we're going to make sure that we can execute it.

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Speaker 1: So it's a very it's a near term problem. Um

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Speaker 1: that will work through in the meantime, Marerea, are there

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Speaker 1: places you can save some costs? Let me give you

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Speaker 1: one example advertising. If you can't sell as many vehicles,

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Speaker 1: maybe you don't need to advertise as much. Well, you know, David,

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Speaker 1: it's a great point. We are saving across the board. Uh.

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Speaker 1: You know, we're we're seeing a strong pricing environment. Obviously

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Speaker 1: we're adjusting what we're doing to match. Uh, you know

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Speaker 1: the fact that we're selling over every vehicle that we can.

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Speaker 1: But also through COVID and and through this crisis with semiconductors,

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Speaker 1: we have found ways to make the business more efficient.

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Speaker 1: We're working with our dealers to uh to drive an

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Speaker 1: increase in profitability for them as well as improving our costs.

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Speaker 1: And so across the word, we are always driving efficiencies

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Speaker 1: and that that's an underlying, underlying strength of our organization

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Speaker 1: and that supports the strong earnings. Mary, Let's talk about

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Speaker 1: the perhaps longer term. That's electric vehicle something you've really embraced.

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Speaker 1: You have some very aggressive goals for General Motors going

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Speaker 1: out electric vehicles. We had some big news this week

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Speaker 1: from arrival starts with a T won't necessarily name it.

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Speaker 1: With some big fleet sales, particularly to HURT. I know

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Speaker 1: in the past you've been I think a little dubious

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Speaker 1: about fleet sales because the margins get down. Where are

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Speaker 1: you on fleet sales for electric vehicles? Are they different

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Speaker 1: because you really want to get broad acceptance? Are you

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Speaker 1: looking at fleet sales for electric vehicles? Well, you know,

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Speaker 1: if you look at bright Drop, you know the commercial fleet, uh,

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Speaker 1: and what we can do from a light commercial vehicle

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Speaker 1: perspective with bright Drop and and the whole ecosystem that

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Speaker 1: will support I think is a huge opportunity, and that's

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Speaker 1: some of the most profitable of fleet sales. We're looking

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Speaker 1: at many different opportunities because with electric vehicles you can

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Speaker 1: really kind of re reframe how the sales will be,

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Speaker 1: and so we're looking at a number of opportunities. But

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Speaker 1: I think you know what we've announced is around bright Drop.

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Speaker 1: I'm very excited about that because that's just pure growth

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Speaker 1: for us. But as I understand, we shouldn't rule out

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Speaker 1: the possiblity that down the road, General Motors might have

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Speaker 1: a deal similar Hurts deal. Well, you know, in the

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Speaker 1: past we have limited our rental cars because that generally

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Speaker 1: was the least profitable type of fleet sales. As UM,

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Speaker 1: we reimagine how the business will look. We're not ruling

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Speaker 1: anything out, okay. And finally, Mary, we've talked a lot

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Speaker 1: about back to the office. Since we talked last, there

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Speaker 1: have been more and more vaccine mandates. Is that affecting

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Speaker 1: General Motors operations? Do you anticipate it will? I don't

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Speaker 1: think it will. You know what will work? We continue

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Speaker 1: to encourage our employees to get the vaccine we encourage,

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Speaker 1: We continue to provide them the information, uh you know,

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Speaker 1: from CDC and other UM like organizations around the globe.

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Speaker 1: And we're going to work UM to understand how to

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Speaker 1: implement the executive order from the President, but to do

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Speaker 1: so in a way that our employees and our unions

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Speaker 1: of agree to. So once we know the details, will

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Speaker 1: work the execution plan. But I don't foresee it being

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Speaker 1: an issue for General Motors as we look at our

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Speaker 1: overall labor availability. You do have a obviously a very

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Speaker 1: important relationship with the U A w C. I oh,

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Speaker 1: as you talk with them, do you see resistance coming

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Speaker 1: from the union side to vaccine mandates? Well, I think

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Speaker 1: that's a better question to ask a S the U

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Speaker 1: A W. We're just working with them to provide information

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Speaker 1: and encourage encourage all of our employees to make the

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Speaker 1: decision with the right information. And that's what we'll continue

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Speaker 1: to do. And then again we'll look at what the

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Speaker 1: specifics are of the mandate and figure out how to

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Speaker 1: how to implement. At this point, we don't know where

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Speaker 1: we are in the pandemic, but it seems like it's

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Speaker 1: getting better again in the United States. Is it affecting

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Speaker 1: GM operations either on the sales side or the production side. Actually, uh,

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Speaker 1: you know we're the biggest impact. That's UH that's gating

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Speaker 1: us right now. Is we talked about his semiconductors, but

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Speaker 1: we've we've seen recovery from the impact in Q three

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Speaker 1: from some of our supply eye base that caused UH

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Speaker 1: a little bit deeper impact. So I'm I'm optimistic that

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Speaker 1: we are through the worst of it. UM. We've shared

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Speaker 1: our safety protocols with our supply base around the world,

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Speaker 1: So that's what gives me confidence that we're going to

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Speaker 1: see a stronger Q four and then a stronger Q

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Speaker 1: one and even UH as we get to the second

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Speaker 1: half of next year. UH continued improvement as you have

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Speaker 1: that gating function as you refer to it, Mary, with

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Speaker 1: the semiconductors, are you seeing inflation either in the cost

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Speaker 1: you're paying for inputs or costs you can pass along

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Speaker 1: the consumers. Well, we definitely are seeing commodity prices increasing

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Speaker 1: as well as the cost of logistics, which I think is,

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Speaker 1: you know, impacting almost every industry. We're working in managing

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Speaker 1: that right now. And again because our product portfolio is

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Speaker 1: so strong, I really believe it's the strongest car strucks

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Speaker 1: and crossovers we've had in my forty year career here

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Speaker 1: at General Motors, and that's that's what is allowing us

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Speaker 1: to also have very strong pricing and because we have

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Speaker 1: strong receptivity from the customers. Okay, very really appreciate you

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Speaker 1: spend time and say that's Mary bar She's the General

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Speaker 1: Motors chair and CEO. David thinks so much. We are

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Speaker 1: looking at advanced goods trade balances that we've never imagined.

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Speaker 1: We're out to a nineties six negative nineties six billion

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Speaker 1: dollar statistic which I would respectively suggest Diane Swonker myself

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Speaker 1: have never framed. Let's begin there. She is with Grant Thornton, Diane,

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Speaker 1: we have not talked about net exports, exports, imports, but

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Speaker 1: we have a goods trade balance unimaginable. What does that signal, Well,

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Speaker 1: it's really strong demand in the United States relative to

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Speaker 1: the rest of the world. That's just where we're at.

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Speaker 1: And I think one of the interesting things is, of

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Speaker 1: course that will subtract from growth in the third quarter,

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Speaker 1: even as durable goods add to growth. In her investment

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Speaker 1: that we're seeing out there is really the strongest and

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Speaker 1: technology intellectual property that we've seen since the nineteen So

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Speaker 1: we'll get some productivity growth, but it really is going

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Speaker 1: to be the weakest growth of the quarter, which we'll

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Speaker 1: get out tomorrow, will be the third quarter, the weakest

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Speaker 1: growth since the onset of the pandemic recovery. But of

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Speaker 1: course we're now starting to gain more traction again as

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Speaker 1: the delta wave fades, and we're seeing that already in

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Speaker 1: some of the credit card data coming in for the

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Speaker 1: month of October and as we go into November. Of course,

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Speaker 1: the biggest constraint we're going to face out there is

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Speaker 1: shortages and price heights. Rebecca Patterson was on earlier and

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Speaker 1: she would demand that we asked the economist Diane Swank,

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Speaker 1: Are we in a demand shock or a supply sack?

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Speaker 1: Rebecca Patterson of Bridgewater says, this is a demand shock.

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Speaker 1: It's all of the above. I mean, there's no question

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Speaker 1: there's a demand shock out there, and we've used at

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Speaker 1: Jamaan chock with the last round of stimulus checks. We've

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Speaker 1: got a lot of excess savings that's being drained down.

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Speaker 1: Much depends on how much we get the pride sector

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Speaker 1: to pick up the baton from the federal government as

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Speaker 1: we get into the fourth quarter and into two and

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Speaker 1: see job gains pick up again after the delta wave.

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Speaker 1: I think that's going to happen, and that is hard

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Speaker 1: for the FED because even as you're on your comparisons

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Speaker 1: get to be more difficult, which means the inflation numbers

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Speaker 1: should taper off a bit. In two. I think they're

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Speaker 1: going to be residually higher than the FED is going

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Speaker 1: to be comfortable with, and they're they're going to be

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Speaker 1: in the tough position of determining whether or not the

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Speaker 1: inflation that we're enduring in two is in fact going

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Speaker 1: to be more um intracted get into the economy more.

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Speaker 1: And I think that's something that they're going to have

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Speaker 1: to act on. And my concern is that we do

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Speaker 1: see companies out there doubling up on inventories, doubling up

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Speaker 1: on orders to hedge against what are these supply chain shocks.

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Speaker 1: But that won't abate inflation until we get well into

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Speaker 1: three and that's just too long for the FED to

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Speaker 1: wake Dan. Let's get into the politics of the economics,

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Speaker 1: because that's where it's going in Washington, d C. The

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Speaker 1: idea of the demand side shock versus the supply side

431
00:23:05,320 --> 00:23:08,280
Speaker 1: shock is frankly squarely in the Republican talking points where

432
00:23:08,280 --> 00:23:11,440
Speaker 1: they're saying it is because we passed these bills earlier

433
00:23:11,440 --> 00:23:14,240
Speaker 1: in the year and last year that basically gave people

434
00:23:14,320 --> 00:23:17,199
Speaker 1: checks that we're seeing the demand shock that we are seeing.

435
00:23:17,440 --> 00:23:21,439
Speaker 1: How much is that really the issue versus just the

436
00:23:21,680 --> 00:23:25,280
Speaker 1: difficulties and turning off an entire economy, turning it back

437
00:23:25,359 --> 00:23:30,399
Speaker 1: on and expecting it to happen without friction. Well, I

438
00:23:30,440 --> 00:23:32,280
Speaker 1: think you know it really is. This is you know,

439
00:23:32,600 --> 00:23:34,560
Speaker 1: friction upon re entry as I call it, as a

440
00:23:34,600 --> 00:23:36,840
Speaker 1: spaceship comes back in and you hope it doesn't bring

441
00:23:37,200 --> 00:23:40,080
Speaker 1: um burn up and the heat shields hold. It really

442
00:23:40,160 --> 00:23:42,240
Speaker 1: is a lot of frictions, frictions in the labor market.

443
00:23:42,280 --> 00:23:44,080
Speaker 1: We've seen that. I think we're going to see more

444
00:23:44,119 --> 00:23:47,240
Speaker 1: workers come back into the labor force in the fourth quarter.

445
00:23:47,600 --> 00:23:50,640
Speaker 1: But the bottom line is you can't expect to turn

446
00:23:50,680 --> 00:23:53,720
Speaker 1: off a global economy and then just ramp it back

447
00:23:53,800 --> 00:23:57,119
Speaker 1: up overnight. And in fact, many producers expected when we

448
00:23:57,160 --> 00:24:01,119
Speaker 1: turn the lights off back in March in the US

449
00:24:01,200 --> 00:24:04,160
Speaker 1: at least some accompany countries before that, that it would

450
00:24:04,160 --> 00:24:06,720
Speaker 1: take quite a while for us to ramp back up.

451
00:24:06,800 --> 00:24:10,000
Speaker 1: And because we supported spending as we needed to, as

452
00:24:10,000 --> 00:24:13,120
Speaker 1: we paid people to go home from work, that ended

453
00:24:13,200 --> 00:24:16,680
Speaker 1: up creating in very unusual dynamic out there. And it's

454
00:24:16,720 --> 00:24:19,520
Speaker 1: just not not to be surprised that we're going through this.

455
00:24:19,920 --> 00:24:23,240
Speaker 1: That said, it's really hard to disentangle the politics from

456
00:24:23,240 --> 00:24:26,600
Speaker 1: the economics. Economics are really all of the above. We

457
00:24:26,680 --> 00:24:29,800
Speaker 1: are having a demand shock because consumers couldn't spend on

458
00:24:29,920 --> 00:24:32,000
Speaker 1: certain things, and then when they can, they're all trying

459
00:24:32,000 --> 00:24:33,679
Speaker 1: to run through the door. At the same time, you

460
00:24:33,720 --> 00:24:37,760
Speaker 1: see searge pricing on hotels and airfares a minute consumers

461
00:24:37,960 --> 00:24:40,680
Speaker 1: come back. We've had a lot of disruptions out there

462
00:24:40,880 --> 00:24:44,159
Speaker 1: in addition to climate change and extreme weather events. Everyone

463
00:24:44,200 --> 00:24:48,000
Speaker 1: forgets Hurricane Ida exacerbated the rise in prices at the

464
00:24:48,000 --> 00:24:50,640
Speaker 1: pump in October and adding to all of this confusion.

465
00:24:50,680 --> 00:24:53,400
Speaker 1: Day and you're talking about friction upon re entry. When

466
00:24:53,400 --> 00:24:55,080
Speaker 1: do we know that we've entered right? When do we

467
00:24:55,160 --> 00:24:58,600
Speaker 1: know what signals economic signals do you look at to

468
00:24:58,720 --> 00:25:00,560
Speaker 1: know that we have reached some sort of new normal

469
00:25:00,960 --> 00:25:07,080
Speaker 1: rather than just the waiting period for everything to equalize. Well,

470
00:25:07,119 --> 00:25:09,760
Speaker 1: that's you know, the million dollar or a billion trillion

471
00:25:09,760 --> 00:25:11,919
Speaker 1: dollar question. We have to keep going up on our numbers.

472
00:25:12,000 --> 00:25:14,200
Speaker 1: I think quadrillion is the next one after this one.

473
00:25:14,200 --> 00:25:16,719
Speaker 1: I actually had to look it up. But there's no

474
00:25:16,840 --> 00:25:20,040
Speaker 1: question that what we're looking for is some kind of

475
00:25:20,080 --> 00:25:24,640
Speaker 1: a sort of stabilizing in underlying inflation pressures um not

476
00:25:24,800 --> 00:25:28,040
Speaker 1: as broad based inflation increases. I think one of the

477
00:25:28,080 --> 00:25:31,080
Speaker 1: things we're gonna have to be dealing with two is

478
00:25:31,119 --> 00:25:33,600
Speaker 1: the lags on shelter and that could add a half

479
00:25:33,640 --> 00:25:36,760
Speaker 1: percent to underlying inflation measures alone. So even as some

480
00:25:36,800 --> 00:25:39,480
Speaker 1: of the energy price and the surge pricing that we're

481
00:25:39,520 --> 00:25:42,119
Speaker 1: seeing right now, as we get that friction going and

482
00:25:42,160 --> 00:25:44,919
Speaker 1: the real heat that singes, that will cool down, but

483
00:25:45,000 --> 00:25:47,680
Speaker 1: not enough to sort of leave the FED on the sidelines.

484
00:25:47,720 --> 00:25:49,919
Speaker 1: I really don't think we're gonna see anything about what

485
00:25:49,960 --> 00:25:53,159
Speaker 1: this economy really is like outside of a pandemic and

486
00:25:53,280 --> 00:25:56,920
Speaker 1: into an endemic until we get into three because we're

487
00:25:56,920 --> 00:25:59,680
Speaker 1: talking about not even being able to vaccinate the world,

488
00:25:59,760 --> 00:26:03,920
Speaker 1: which is key here until well into Dane. What's so

489
00:26:04,000 --> 00:26:07,640
Speaker 1: important here? And you've been you've really had truly national

490
00:26:07,720 --> 00:26:10,680
Speaker 1: leadership on this is don't forget the Third coast. It's

491
00:26:10,680 --> 00:26:13,359
Speaker 1: all about the East coast, the West coast, and there's

492
00:26:13,400 --> 00:26:18,280
Speaker 1: one big flyover including Frankly O'Hara in Chicago, Dan Swak,

493
00:26:18,320 --> 00:26:22,040
Speaker 1: that's a bunch of Bologny. What is the tech revolution

494
00:26:22,200 --> 00:26:26,320
Speaker 1: right now in the third coast of America? Away from Amazon,

495
00:26:26,680 --> 00:26:31,240
Speaker 1: away from Microsoft? What's the tech revolution? Look across the

496
00:26:31,359 --> 00:26:36,720
Speaker 1: four time zones? You know, actually we are seeing a

497
00:26:36,840 --> 00:26:39,639
Speaker 1: major tech spread out across the country. And this is

498
00:26:39,680 --> 00:26:42,440
Speaker 1: really interesting to see what's going on. You're seeing tech

499
00:26:42,520 --> 00:26:45,840
Speaker 1: hubs in places like Boise, you know, really real places

500
00:26:45,880 --> 00:26:48,960
Speaker 1: to see it, Charlotte, Austin obviously, but we also have

501
00:26:49,040 --> 00:26:51,640
Speaker 1: some in Chicago. It's really been stunning to see what's

502
00:26:51,640 --> 00:26:55,280
Speaker 1: going on here and where the real high end building

503
00:26:55,359 --> 00:26:58,159
Speaker 1: and high end housing is going up, and high end

504
00:26:58,160 --> 00:27:01,480
Speaker 1: construction for office space is tech related, and so what

505
00:27:01,560 --> 00:27:04,199
Speaker 1: you're seeing is some of that tech being spread across

506
00:27:04,200 --> 00:27:06,600
Speaker 1: the nation. And what we've really seen is the pandemic

507
00:27:06,720 --> 00:27:10,840
Speaker 1: acceleratate the digitization of the US economy. You're seeing that

508
00:27:11,000 --> 00:27:13,919
Speaker 1: in the car industry, the electric cars coming out, not

509
00:27:14,119 --> 00:27:18,040
Speaker 1: just from Tesla, but also from the traditional automakers with

510
00:27:18,119 --> 00:27:20,760
Speaker 1: a lot more options out there, this movement is on.

511
00:27:20,880 --> 00:27:22,879
Speaker 1: In fact, they're worried about how how they're going to

512
00:27:23,000 --> 00:27:26,480
Speaker 1: get um dealers to sell electric vehicles. Well, it's not

513
00:27:26,560 --> 00:27:28,960
Speaker 1: part of the model. The bottom line is demand is

514
00:27:29,080 --> 00:27:32,840
Speaker 1: driving some of the movement on electric vehicles, and dealers

515
00:27:32,880 --> 00:27:36,719
Speaker 1: models are being outdated as we've moved to now buy online,

516
00:27:36,920 --> 00:27:40,280
Speaker 1: even cars and homes. It really is a different world.

517
00:27:40,520 --> 00:27:44,240
Speaker 1: Of course, that digitization also creates big gaps and inequalities.

518
00:27:44,359 --> 00:27:46,800
Speaker 1: People who are trying to apply for jobs aren't used

519
00:27:46,840 --> 00:27:50,040
Speaker 1: to being able to apply having to apply totally online,

520
00:27:50,040 --> 00:27:52,280
Speaker 1: which is where all the jobs are listed now, and

521
00:27:52,320 --> 00:27:55,800
Speaker 1: they're in broadband dead zones. We really need to expand

522
00:27:55,840 --> 00:27:58,320
Speaker 1: broadband to be able to increase the access of those

523
00:27:58,320 --> 00:28:01,040
Speaker 1: people who need jobs and or match them up to

524
00:28:01,080 --> 00:28:03,480
Speaker 1: where people who don't have to people who are looking

525
00:28:03,520 --> 00:28:06,800
Speaker 1: for workers. That's difficult as well, both in urban and

526
00:28:06,920 --> 00:28:10,760
Speaker 1: rural area. So this really is a massive change that

527
00:28:10,880 --> 00:28:13,840
Speaker 1: the pandemic accelerated, and I think it will deliver a

528
00:28:13,840 --> 00:28:17,399
Speaker 1: lot of productivity growth. The problem is it's not evenly distributed.

529
00:28:17,640 --> 00:28:20,800
Speaker 1: The brilliant Dan Swunk of Grand Thornson looking forward to

530
00:28:20,800 --> 00:28:23,680
Speaker 1: catching up again next week, hopefully around that fat decision. Dian,

531
00:28:23,760 --> 00:28:34,159
Speaker 1: thank you joining us now. Without question, our interview of

532
00:28:34,200 --> 00:28:38,000
Speaker 1: the day is a skeptic one. Douglas Cast of Sea

533
00:28:38,040 --> 00:28:41,800
Speaker 1: Breeze Partners and Doug the class act. You are you

534
00:28:41,920 --> 00:28:46,360
Speaker 1: not only quote Thomas Lee, who has nailed this bulmarket surge,

535
00:28:46,760 --> 00:28:49,400
Speaker 1: but you say, look, this is where Tom Lee is,

536
00:28:49,960 --> 00:28:52,800
Speaker 1: this is why Tom Lee's right, and boy have I

537
00:28:52,920 --> 00:28:58,000
Speaker 1: been wrong? Now? What for Doug Cass. You know what

538
00:28:58,040 --> 00:29:01,600
Speaker 1: the dude said in the big lebout sometimes you eat

539
00:29:01,640 --> 00:29:04,880
Speaker 1: the bar, and well sometimes the bar each you. Yeah,

540
00:29:04,880 --> 00:29:06,480
Speaker 1: but you're in the bright, Dug. I'm not going to

541
00:29:06,600 --> 00:29:09,160
Speaker 1: mince words here. Everybody else is out there being quiet.

542
00:29:09,440 --> 00:29:12,880
Speaker 1: You're like a pinata out on social because you've got

543
00:29:12,880 --> 00:29:17,840
Speaker 1: the courage to be vocal invisible about your convictions. Now

544
00:29:17,880 --> 00:29:22,480
Speaker 1: what I do. I'm very straightforward. Um, I would say that,

545
00:29:22,640 --> 00:29:25,560
Speaker 1: you know, there's the English translation of a Chinese curse.

546
00:29:26,400 --> 00:29:30,200
Speaker 1: May we live in interesting times? And I do believe

547
00:29:30,240 --> 00:29:34,520
Speaker 1: that we live in the most interesting times of all. Um.

548
00:29:34,560 --> 00:29:36,440
Speaker 1: You know, I embarrassed on the market. I think that

549
00:29:36,560 --> 00:29:39,480
Speaker 1: the conditions that exist in the real economy or on

550
00:29:39,600 --> 00:29:44,320
Speaker 1: Main Street have diverged widely from Wall Street. And it's

551
00:29:44,360 --> 00:29:48,400
Speaker 1: happening at a time in which valuations based upon historical

552
00:29:48,440 --> 00:29:52,560
Speaker 1: metrics such as my friend Robert Schiller's keep ratio or

553
00:29:52,600 --> 00:29:55,240
Speaker 1: the market cap to g d P, which is Warren

554
00:29:55,240 --> 00:30:00,520
Speaker 1: Buffett's favorite valuation metric, are all in the or even decile.

555
00:30:01,040 --> 00:30:04,040
Speaker 1: And at the core of my parish market view is

556
00:30:04,080 --> 00:30:08,239
Speaker 1: a notion that inflation and supply chains disruptions will be

557
00:30:08,280 --> 00:30:11,200
Speaker 1: sustained for a lengthy period of time. Now I'm long

558
00:30:11,240 --> 00:30:14,360
Speaker 1: and I'm buying cannabis stocks, but investors are smoking dope

559
00:30:14,680 --> 00:30:18,800
Speaker 1: if they think the supply chain issues are easily solved, solvable,

560
00:30:18,840 --> 00:30:21,320
Speaker 1: And as I said to John Farrow, a bunch of

561
00:30:21,360 --> 00:30:26,080
Speaker 1: times pull market optimism abounds even though there has really

562
00:30:26,120 --> 00:30:30,040
Speaker 1: been such a wide array of possible economic and market outcomes,

563
00:30:30,280 --> 00:30:33,440
Speaker 1: and many of those outcomes are adverse and market unfriendly.

564
00:30:33,720 --> 00:30:37,320
Speaker 1: But when I talk about interesting times, I'm talking about

565
00:30:37,840 --> 00:30:42,200
Speaker 1: the gamification of the market. UM speculation is hot, hot, hot,

566
00:30:42,480 --> 00:30:46,080
Speaker 1: and that is not good good good. UM. I'm sure

567
00:30:46,240 --> 00:30:49,000
Speaker 1: robin Hood which is the premier gamer trading site, but

568
00:30:49,120 --> 00:30:52,120
Speaker 1: when but it really has become a floating crap game

569
00:30:52,160 --> 00:30:56,640
Speaker 1: for speculation and digital currencies, meme stocks and weekly option

570
00:30:57,080 --> 00:31:02,400
Speaker 1: trading investing. It seems to meet us increasingly become hass a.

571
00:31:02,880 --> 00:31:05,440
Speaker 1: Let's get Paul to jump in here with some securities analysis.

572
00:31:05,840 --> 00:31:07,959
Speaker 1: Just wondering here, we're about almost two thirds away through

573
00:31:08,000 --> 00:31:10,920
Speaker 1: the earnings reporting cycle here for the third quarter. What

574
00:31:11,080 --> 00:31:13,840
Speaker 1: have you learned that's kind of reinforced or maybe cause

575
00:31:13,920 --> 00:31:17,840
Speaker 1: you a question your call. I think that there's a

576
00:31:17,840 --> 00:31:23,920
Speaker 1: lot of double ordering. UM. I think um uh rates

577
00:31:23,920 --> 00:31:27,800
Speaker 1: are going to be rising. I think that the product

578
00:31:27,880 --> 00:31:31,800
Speaker 1: price increases which are occurring at every single company that

579
00:31:31,840 --> 00:31:38,720
Speaker 1: I interview um UM will lead to demand destruction. UM.

580
00:31:38,920 --> 00:31:43,280
Speaker 1: You know, I find that I use the word slugflation

581
00:31:43,840 --> 00:31:47,400
Speaker 1: sluggish economic growth and sustained inflation, not stay inflation. And

582
00:31:47,440 --> 00:31:52,160
Speaker 1: that's what I think slug flash inflation lies ahead. UM.

583
00:31:52,520 --> 00:31:57,400
Speaker 1: I recognize that I think that the UM expansion of

584
00:31:57,480 --> 00:32:00,360
Speaker 1: negative real interest rates has been at the war of

585
00:32:00,400 --> 00:32:02,440
Speaker 1: a lot of bullish arguments. I think you guys will

586
00:32:02,480 --> 00:32:05,920
Speaker 1: both agree, and I recognize that negative real interest rates

587
00:32:05,920 --> 00:32:08,000
Speaker 1: are a tail went to equities. But the fact is

588
00:32:08,480 --> 00:32:12,320
Speaker 1: that expanding negative real interest rates cripple's main street by

589
00:32:12,360 --> 00:32:15,440
Speaker 1: reducing real incomes. And there have been periods of time

590
00:32:15,960 --> 00:32:19,120
Speaker 1: when negative real interest rates have led to market collapses.

591
00:32:19,720 --> 00:32:22,120
Speaker 1: UM the U S stock market in the earlier mid

592
00:32:22,600 --> 00:32:25,880
Speaker 1: seventies UM is a good example, when the nifty fifty

593
00:32:25,920 --> 00:32:29,160
Speaker 1: collapsed and the SMP entered to bear market. Japan is

594
00:32:29,200 --> 00:32:32,280
Speaker 1: another example in which real interest rates have been negative

595
00:32:32,320 --> 00:32:36,320
Speaker 1: for several decades and investment returns have been poor. I've

596
00:32:36,320 --> 00:32:40,440
Speaker 1: been wrong because I've unders understated the herd strength. I've

597
00:32:40,520 --> 00:32:46,320
Speaker 1: understated the strength of FOMO and the inflow of money

598
00:32:46,440 --> 00:32:51,760
Speaker 1: into mutual funds and UH equity mutual funds, as well

599
00:32:51,800 --> 00:32:55,800
Speaker 1: as the changing market structure in which quant strategies that

600
00:32:55,880 --> 00:33:00,680
Speaker 1: know everything about nothing about value. The FED a reserve.

601
00:33:00,760 --> 00:33:04,520
Speaker 1: We've got Chairman Powell, you know, sticking to that inflation

602
00:33:04,640 --> 00:33:06,760
Speaker 1: is transitorious. There's gonna be a problem for him and

603
00:33:06,840 --> 00:33:09,840
Speaker 1: for this FED. I think it's a big problem. I

604
00:33:09,960 --> 00:33:13,520
Speaker 1: think he's um put himself into a box. I think

605
00:33:13,640 --> 00:33:17,120
Speaker 1: Powell's legacy seems to be moving in the wrong direction.

606
00:33:17,800 --> 00:33:19,680
Speaker 1: In the months ahead, I expect him to walk back

607
00:33:19,760 --> 00:33:22,840
Speaker 1: all the views of easing money and wanting high inflationer

608
00:33:22,920 --> 00:33:26,400
Speaker 1: that he's so confidently espoused. And again, I think if

609
00:33:26,440 --> 00:33:28,760
Speaker 1: you look at twos and thirties, there's clear message from

610
00:33:28,800 --> 00:33:31,000
Speaker 1: the bond market. If you look at the five year

611
00:33:31,040 --> 00:33:33,920
Speaker 1: break evans, which hit the highest level since two thousands five,

612
00:33:34,680 --> 00:33:37,680
Speaker 1: the Fed is making a policy mist mistake. Already there

613
00:33:37,720 --> 00:33:41,479
Speaker 1: have been over twenty rate hikes globally in Russia, Brazil, UK,

614
00:33:41,680 --> 00:33:46,280
Speaker 1: New Zealand, Australia, Accounta, Mexico. Nothing from the Fed. UM

615
00:33:46,560 --> 00:33:50,239
Speaker 1: So this is this is a danger dangerous precedent at

616
00:33:50,280 --> 00:33:53,000
Speaker 1: a time in which I believe the rate of growth

617
00:33:53,040 --> 00:33:57,000
Speaker 1: in economic activity is going to be the out of this.

618
00:33:57,080 --> 00:33:59,560
Speaker 1: But this is a really important conversation. It's well known

619
00:33:59,640 --> 00:34:02,840
Speaker 1: that has Cast gets the Robin Hood trade right, he

620
00:34:02,960 --> 00:34:05,480
Speaker 1: will click in to be one of the seven billionaires

621
00:34:06,160 --> 00:34:09,520
Speaker 1: in America. Doug, you live down in one of the

622
00:34:09,640 --> 00:34:12,800
Speaker 1: fanciest parts of the planet. I mean, you know, I

623
00:34:12,960 --> 00:34:15,680
Speaker 1: think you've got the littlest house within six miles, and

624
00:34:15,760 --> 00:34:21,279
Speaker 1: you've got like square feet the shadow of the former presidents. Yeah,

625
00:34:21,320 --> 00:34:24,440
Speaker 1: I mean, I mean literally, you live where we're talking

626
00:34:24,520 --> 00:34:29,280
Speaker 1: about this billionaire's tax you and I know these guys

627
00:34:29,440 --> 00:34:36,960
Speaker 1: are writing, as a generalization, big checks to hospitals, two schools, this, that,

628
00:34:37,280 --> 00:34:39,160
Speaker 1: and the I wish they'd write me a check. But

629
00:34:39,600 --> 00:34:43,360
Speaker 1: the bottom line is, Doug, what's your gut feeling the

630
00:34:43,520 --> 00:34:47,040
Speaker 1: people you hang out with every day? We'll do if

631
00:34:47,080 --> 00:34:52,160
Speaker 1: they're told they're gonna have confiscation of gains not taken,

632
00:34:52,440 --> 00:34:57,160
Speaker 1: how's that going to play out? Well? UM, let's first

633
00:34:57,200 --> 00:34:59,399
Speaker 1: start of the fact, let's look at the Elon Musk.

634
00:34:59,480 --> 00:35:02,040
Speaker 1: I'm gonna ans you a question directly, but let me

635
00:35:02,200 --> 00:35:06,920
Speaker 1: first mentioned that. Um, the speculation in Tesla is an

636
00:35:06,960 --> 00:35:11,480
Speaker 1: example of the problem in this market. Um. To paraphrase

637
00:35:11,560 --> 00:35:15,799
Speaker 1: Hyman Roth what he said in the Godfather movie Leon,

638
00:35:16,200 --> 00:35:19,280
Speaker 1: excuse me, Elon Muskt is far bigger than us steel.

639
00:35:19,719 --> 00:35:22,400
Speaker 1: His net work now exceeds that of Exxon Mobile, and

640
00:35:22,520 --> 00:35:24,239
Speaker 1: as wealth is two and a half times that of

641
00:35:24,320 --> 00:35:28,520
Speaker 1: Jeff Bezos my favorite stock, Amazon, And if Bill Gates

642
00:35:28,600 --> 00:35:31,880
Speaker 1: and Mark Zuckerberg were married, their combined assets will be

643
00:35:32,000 --> 00:35:33,960
Speaker 1: less than Musk's. And now I'm gonna give you an

644
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Speaker 1: amazing stat Muskets made more money in the last nine

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Speaker 1: months than Warren Buffett has made in ninety one years. UM.

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Speaker 1: I shared now directly in response to your question, I

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Speaker 1: shared an anecdote. I hope Lee Cooperman doesn't get piste

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Speaker 1: off at me that I mentioned it. UM. I spent

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Speaker 1: two and a half hours with Lee um in a

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00:35:52,080 --> 00:35:55,160
Speaker 1: research meeting of a company that we're both interested, who

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00:35:55,239 --> 00:35:58,800
Speaker 1: flew in overseas to see us yesterday. Lee lives in

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00:35:58,880 --> 00:36:03,160
Speaker 1: a very um tony community filled with Rose Royce's Ferraris

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00:36:03,200 --> 00:36:06,960
Speaker 1: and Bentley's. We move, We go out to get our cars.

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Speaker 1: The parking intendant brings Lee's car. It's a six year

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Speaker 1: old Nissan. Lee as a person that has just given

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Speaker 1: one hundred million dollars to St. Barnabas Hospital in New Jersey,

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Speaker 1: Lee justifiably would rather give the money to the charities

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00:36:22,800 --> 00:36:26,240
Speaker 1: and to the endeavors that he wants visa vi the government,

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00:36:26,280 --> 00:36:31,279
Speaker 1: which tends to spend uh. The money's poorly. So I'm

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00:36:31,320 --> 00:36:37,480
Speaker 1: a progressive. I'm a progressive Democrat, but I lean away

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Speaker 1: from Elizabeth lawrence suggestion of a wealth taped. We're out

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Speaker 1: of time. We could go on on this and of

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Speaker 1: course market I want to thank you particularly for your

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Speaker 1: comment on the bull Thomas Lee within the dougcast report

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Speaker 1: this morning, Let's see Bres partners. This is the Bloomberg

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00:36:52,920 --> 00:36:57,279
Speaker 1: Surveillance Podcast. Thanks for listening. Join us live weekdays from

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00:36:57,360 --> 00:37:00,200
Speaker 1: seven to ten a m. Eastern. I'm Bloomberg Ray DEO.

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00:37:00,440 --> 00:37:04,040
Speaker 1: And on Bloomberg Television each day from six to nine

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00:37:04,120 --> 00:37:08,520
Speaker 1: am for insight from the best in economics, finance, investment,

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00:37:08,680 --> 00:37:13,640
Speaker 1: and international relations. And subscribe to the Surveillance podcast on

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00:37:13,800 --> 00:37:17,600
Speaker 1: Apple podcast, SoundCloud, Bloomberg dot com, and of course on

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00:37:17,719 --> 00:37:21,840
Speaker 1: the terminal. I'm Tom Keene and this is Bloomberg