1 00:00:06,320 --> 00:00:12,960 Speaker 1: Yeah, Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. 2 00:00:13,480 --> 00:00:17,560 Speaker 1: Daily we bring you insight from the best in economics, finance, investment, 3 00:00:18,000 --> 00:00:23,520 Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 4 00:00:23,600 --> 00:00:33,680 Speaker 1: Bloomberg dot Com, and of course, on the Bloomberg. We 5 00:00:33,800 --> 00:00:36,280 Speaker 1: begin bloom Bag Surveillance with the President's State of the 6 00:00:36,360 --> 00:00:39,800 Speaker 1: Union address, where Donald Trump sought to connect his presidency 7 00:00:40,080 --> 00:00:44,800 Speaker 1: to the nation's prosperity. The state of our Union is 8 00:00:44,880 --> 00:00:49,760 Speaker 1: strong because our people are strong. This, in fact, is 9 00:00:49,880 --> 00:00:54,200 Speaker 1: our new American moment. There has never been a better 10 00:00:54,280 --> 00:00:58,760 Speaker 1: time to start living the American dream. America has also 11 00:00:58,960 --> 00:01:03,360 Speaker 1: finally turned the age on decades of unfair trade deals 12 00:01:03,400 --> 00:01:09,360 Speaker 1: that sacrificed our prosperity and shipped away our companies, our jobs, 13 00:01:09,920 --> 00:01:16,040 Speaker 1: and our wealth. Under the current broken system, a single 14 00:01:16,120 --> 00:01:22,160 Speaker 1: immigrant can bring in virtually unlimited numbers of distant relatives. 15 00:01:22,880 --> 00:01:28,400 Speaker 1: Under our plan, we focus on the immediate family by 16 00:01:28,480 --> 00:01:33,320 Speaker 1: limiting sponsorships, two spouses and minor children. I am extending 17 00:01:33,319 --> 00:01:36,760 Speaker 1: an open hand to work with members of both parties, 18 00:01:37,120 --> 00:01:44,440 Speaker 1: Democrats and Republicans to protect our citizens of every background, color, religion, 19 00:01:44,600 --> 00:01:48,320 Speaker 1: and creed. That was the President of the United States 20 00:01:48,320 --> 00:01:50,760 Speaker 1: Donald Trump in its first State of the Unit address, 21 00:01:50,760 --> 00:01:52,360 Speaker 1: and I get to say good morning to Tom Kane 22 00:01:52,400 --> 00:01:54,520 Speaker 1: for what it's been like. What tomp over a week, 23 00:01:54,560 --> 00:01:56,760 Speaker 1: two weeks since you and I've been together. Yeah, we 24 00:01:56,880 --> 00:01:59,280 Speaker 1: missed an he throw by twenty minutes, we actually did. 25 00:01:59,320 --> 00:02:01,160 Speaker 1: You were going to a work. That's right. That was 26 00:02:01,200 --> 00:02:03,800 Speaker 1: an interesting um So I really like that string of 27 00:02:03,880 --> 00:02:07,080 Speaker 1: highlights from the speech. We can talk later about the 28 00:02:07,160 --> 00:02:10,160 Speaker 1: one one paragraph that alluded to maybe the Department of 29 00:02:10,240 --> 00:02:13,320 Speaker 1: Justice in the uproar over Mr Mueller. But away from that, 30 00:02:13,400 --> 00:02:16,280 Speaker 1: the clear consensus John I got from experts this morning 31 00:02:16,720 --> 00:02:19,680 Speaker 1: was there was very little policy within the speech that 32 00:02:19,760 --> 00:02:22,880 Speaker 1: they've I don't want to say they've run out of ideas, 33 00:02:23,560 --> 00:02:26,040 Speaker 1: but usually in a modern State of the Union speech 34 00:02:26,120 --> 00:02:30,040 Speaker 1: there's idea one, idea too, the idea three. I didn't 35 00:02:30,040 --> 00:02:33,079 Speaker 1: hear that last night. There were themes without policy specifics. 36 00:02:33,120 --> 00:02:35,040 Speaker 1: You can pick up on trade, he talked about the 37 00:02:35,040 --> 00:02:37,200 Speaker 1: theft of intellectual property and now follow up on the 38 00:02:37,200 --> 00:02:40,000 Speaker 1: policy specifics. A lot of talk about infrastructure. Over the 39 00:02:40,080 --> 00:02:42,240 Speaker 1: last couple of weeks time we heard that again, this 40 00:02:42,320 --> 00:02:45,120 Speaker 1: idea of we can do something in fact to lou Aller, 41 00:02:45,120 --> 00:02:48,360 Speaker 1: an Apra of Blimberg, did this great highlight reel of 42 00:02:48,520 --> 00:02:50,760 Speaker 1: of the amount of times they mentioned we, more than 43 00:02:50,800 --> 00:02:53,959 Speaker 1: a hundred times. The President mentioned we just thirty times 44 00:02:53,960 --> 00:02:57,800 Speaker 1: he mentioned I can we can that get things done? No, 45 00:02:57,919 --> 00:03:00,639 Speaker 1: I think it's very stylistic and and all that has 46 00:03:00,720 --> 00:03:04,000 Speaker 1: become a a moment for us. But but there it 47 00:03:04,120 --> 00:03:08,320 Speaker 1: is joining us this morning. Martin Feldstine Baker, Professor Harvard, 48 00:03:08,400 --> 00:03:11,440 Speaker 1: who has heard too many state unions. Were you in 49 00:03:11,480 --> 00:03:14,000 Speaker 1: the room for any of the Reagan state of the unions? 50 00:03:14,040 --> 00:03:16,360 Speaker 1: Were you one of the people down there? Yes? I was. 51 00:03:16,960 --> 00:03:21,160 Speaker 1: You were not a designated survivor? No, I go although 52 00:03:21,200 --> 00:03:24,680 Speaker 1: you are the designated survivor, and I have survived. I 53 00:03:24,720 --> 00:03:29,120 Speaker 1: have survived. I don't think a laundry list of specific 54 00:03:29,240 --> 00:03:32,360 Speaker 1: proposals is the right thing for the state. Then what 55 00:03:32,400 --> 00:03:35,600 Speaker 1: do you want to hear? You've got a large, large audience. 56 00:03:36,080 --> 00:03:39,560 Speaker 1: They don't want technical details. So I think, and I 57 00:03:39,600 --> 00:03:43,600 Speaker 1: think it's wrong to say that there's no new policies 58 00:03:43,640 --> 00:03:47,400 Speaker 1: in this. It's just that the President announced his new 59 00:03:47,480 --> 00:03:53,240 Speaker 1: policies in Davos. So the will go back to to 60 00:03:53,720 --> 00:04:02,840 Speaker 1: the We'll go back to the uh E p p UM. 61 00:04:02,920 --> 00:04:04,960 Speaker 1: That's a big change, and that was that was a 62 00:04:05,000 --> 00:04:09,040 Speaker 1: real item in Davos. It was we will open a 63 00:04:09,120 --> 00:04:16,360 Speaker 1: path to citizenship for uh the Dreamers, for the kids 64 00:04:16,440 --> 00:04:19,600 Speaker 1: born in the United brought into the United States as 65 00:04:19,960 --> 00:04:25,240 Speaker 1: young children. That's a major change. So, UH, I don't 66 00:04:25,320 --> 00:04:28,560 Speaker 1: understand why there's a sense that there's no specifics in 67 00:04:28,600 --> 00:04:31,279 Speaker 1: this talk. So what were the specifics on tride in 68 00:04:31,279 --> 00:04:33,680 Speaker 1: the stud of the Union was nine? There were no 69 00:04:33,760 --> 00:04:39,279 Speaker 1: specifics on on trade. And but again the awkward problem 70 00:04:39,400 --> 00:04:43,920 Speaker 1: is what do we do about uh so called voluntary 71 00:04:43,960 --> 00:04:48,280 Speaker 1: transfers of technology where American companies are told that if 72 00:04:48,320 --> 00:04:50,719 Speaker 1: they want to do business in China, they have to 73 00:04:50,880 --> 00:04:54,760 Speaker 1: transfer their technology and they say, well, one point three 74 00:04:54,920 --> 00:04:58,520 Speaker 1: billion people in China, I've got to be there. So 75 00:04:58,640 --> 00:05:01,039 Speaker 1: if they want to know the seek it formula for 76 00:05:01,160 --> 00:05:05,120 Speaker 1: how we make donuts, will give it to them. Well, professor, voluntary, 77 00:05:05,200 --> 00:05:07,960 Speaker 1: of course, is an interesting word that we can debate 78 00:05:08,040 --> 00:05:10,640 Speaker 1: because for some companies in the United States they were said, 79 00:05:10,640 --> 00:05:13,159 Speaker 1: there's nothing voluntarily about it. They want to be in 80 00:05:13,200 --> 00:05:16,240 Speaker 1: that market. And isn't this the President's ultimate problem with 81 00:05:16,320 --> 00:05:19,920 Speaker 1: countries like China, that the entrance to get into this 82 00:05:20,000 --> 00:05:22,760 Speaker 1: market is very very small, and before you go through 83 00:05:22,800 --> 00:05:25,160 Speaker 1: that entrance, you have to give up some of what 84 00:05:25,160 --> 00:05:28,320 Speaker 1: you've felt exactly right. So but again the public doesn't 85 00:05:28,400 --> 00:05:32,279 Speaker 1: want to know that the strategy that the administration will 86 00:05:32,400 --> 00:05:36,280 Speaker 1: use to try to get the Chinese to back off 87 00:05:36,640 --> 00:05:42,480 Speaker 1: that so called voluntary transfer of technology. Uh. The President 88 00:05:42,520 --> 00:05:50,240 Speaker 1: Obama met with President she to talk about the the 89 00:05:50,400 --> 00:05:55,479 Speaker 1: use of cyberspace stealing of American technology, and that got 90 00:05:55,520 --> 00:05:58,840 Speaker 1: the Chinese to cut back on that. So we're gonna 91 00:05:58,920 --> 00:06:01,560 Speaker 1: have to have a similar thing to deal with this 92 00:06:02,040 --> 00:06:07,080 Speaker 1: not really truly voluntary transfer, just joining us. Martin Feldsteine 93 00:06:07,120 --> 00:06:09,200 Speaker 1: with us for a nice amount of time this morning, 94 00:06:09,200 --> 00:06:12,320 Speaker 1: throw that he could be with us. Paul Krugman always 95 00:06:12,400 --> 00:06:15,919 Speaker 1: up edding UH talks about trumpfrastructure, which I think is 96 00:06:15,920 --> 00:06:18,960 Speaker 1: a very fair idea, and that every president has their 97 00:06:19,000 --> 00:06:24,160 Speaker 1: own view of how you do infrastructure. You've seen infrastructure occur. 98 00:06:24,720 --> 00:06:27,760 Speaker 1: You certainly have a vintage to remember Eisenhower in the 99 00:06:27,800 --> 00:06:33,039 Speaker 1: Interstate highway system. How do we actually do infrastructure in 100 00:06:33,040 --> 00:06:36,479 Speaker 1: America so we can have airports and roads like John 101 00:06:36,520 --> 00:06:40,520 Speaker 1: Farrell has it Heathrow and in scene at Coventry, remember 102 00:06:40,600 --> 00:06:45,200 Speaker 1: Hea throw the British airport is not a government private 103 00:06:45,400 --> 00:06:47,800 Speaker 1: it's a private airport. So that's one part. Do we 104 00:06:47,839 --> 00:06:53,000 Speaker 1: need to do more privately? Do more privatization of infrastructure? 105 00:06:53,360 --> 00:06:56,880 Speaker 1: But I think that when President Obama said we have 106 00:06:57,000 --> 00:07:02,080 Speaker 1: shovel ready projects to stimulate economy, there weren't any shovel 107 00:07:02,160 --> 00:07:07,719 Speaker 1: ready projects. So what we need now is an inventory, 108 00:07:08,040 --> 00:07:15,360 Speaker 1: a a a book of of designs, of specifications so 109 00:07:15,400 --> 00:07:19,000 Speaker 1: that when the economy turns down, we can move I'll 110 00:07:19,040 --> 00:07:23,320 Speaker 1: take your point, but are there's so many rusty bridges 111 00:07:23,840 --> 00:07:26,360 Speaker 1: that we can't wait for the economy that's turn down. 112 00:07:26,560 --> 00:07:28,720 Speaker 1: I don't think. Are we really going to supercharge the 113 00:07:28,760 --> 00:07:33,960 Speaker 1: economy with bridge building it'll help when the economy turns down? 114 00:07:34,160 --> 00:07:37,560 Speaker 1: Why not? Why not? Well, the economy is quite strong now. 115 00:07:37,600 --> 00:07:40,520 Speaker 1: I think it's gonna be hard to persuade the Congress 116 00:07:40,560 --> 00:07:46,120 Speaker 1: to to um add to the deficit in order to 117 00:07:46,520 --> 00:07:50,520 Speaker 1: do a substantial infrastructure. How they do the economy is weak, 118 00:07:51,040 --> 00:07:53,760 Speaker 1: there will be a willingness to move forward. How do 119 00:07:53,840 --> 00:07:56,560 Speaker 1: they do this in England? Mary Old England, Well, it's 120 00:07:56,560 --> 00:08:00,800 Speaker 1: tok of infrastructure bonds funding big project X like high 121 00:08:00,800 --> 00:08:03,360 Speaker 1: spilled rail in the United Kingdom. But there's a big 122 00:08:03,360 --> 00:08:07,240 Speaker 1: debate Thomas to whether actually these big, big spending items 123 00:08:07,520 --> 00:08:09,280 Speaker 1: actually need doing at all in a place like the 124 00:08:09,360 --> 00:08:11,880 Speaker 1: United Kingdom is a very different debate to the United States, 125 00:08:11,920 --> 00:08:16,560 Speaker 1: where there's big bipartisan support for an infrastructure project. My question, Professor, 126 00:08:17,160 --> 00:08:18,960 Speaker 1: it's just how it's going to get paid for. The 127 00:08:19,000 --> 00:08:21,360 Speaker 1: Treasury is going to have a refunding announcement a little 128 00:08:21,360 --> 00:08:24,840 Speaker 1: bit later today, typical every three months expected, but this 129 00:08:24,920 --> 00:08:27,000 Speaker 1: one more interesting because we want to know how these 130 00:08:27,040 --> 00:08:28,800 Speaker 1: tax cuts are gonna be spent for where they're gonna 131 00:08:28,800 --> 00:08:32,400 Speaker 1: wishoot along the curve. Now, if you plug infrastructure into 132 00:08:32,480 --> 00:08:34,880 Speaker 1: the treasury market as well, we're going to see a 133 00:08:34,920 --> 00:08:37,800 Speaker 1: big boom in debt, aren't we. We're going to see 134 00:08:37,800 --> 00:08:39,760 Speaker 1: a boom in debt, and my hope is it will 135 00:08:39,840 --> 00:08:44,680 Speaker 1: come when it's needed for macroeconomic reasons, when the economy 136 00:08:44,760 --> 00:08:47,440 Speaker 1: turns down and the Fed says, well, there's not much 137 00:08:47,480 --> 00:08:51,120 Speaker 1: we can do because our interest rates are still two 138 00:08:51,240 --> 00:08:54,640 Speaker 1: or three percent. I mean, I mean, John, I know 139 00:08:54,760 --> 00:08:58,319 Speaker 1: you've had a hangover on platform three in Coventry before, 140 00:08:58,840 --> 00:09:02,199 Speaker 1: but if you get Platform three in Coventry, you can 141 00:09:02,240 --> 00:09:05,120 Speaker 1: go to Edinburgh in four hours fifty nine minutes. You 142 00:09:05,160 --> 00:09:09,120 Speaker 1: can got a train in there like I'm time London 143 00:09:09,160 --> 00:09:12,160 Speaker 1: Houston in about sixty minutes time, and that's a high 144 00:09:12,200 --> 00:09:15,800 Speaker 1: speed rail line itself. I can't we do what he 145 00:09:15,880 --> 00:09:19,920 Speaker 1: takes for granted in England, for we can do it. 146 00:09:19,960 --> 00:09:22,559 Speaker 1: There's no question that we can do it, but I 147 00:09:22,600 --> 00:09:25,480 Speaker 1: think there's going to be a reluctance to do it. 148 00:09:25,520 --> 00:09:27,959 Speaker 1: Of course, again, a lot of the British rail has 149 00:09:28,000 --> 00:09:33,400 Speaker 1: been privatized, so we're The solution for all these things 150 00:09:33,520 --> 00:09:37,560 Speaker 1: is not more government activities, but I think we will 151 00:09:37,640 --> 00:09:40,439 Speaker 1: need to get the government into this when the economy 152 00:09:40,559 --> 00:09:43,320 Speaker 1: is weak. Martin Fell signed with Harvard University and John 153 00:09:43,360 --> 00:10:01,679 Speaker 1: Ferrell from Platform three in Coventry this morning. Jared Cyberg 154 00:10:01,800 --> 00:10:05,319 Speaker 1: is of Cowen. They do great, great research all sorts 155 00:10:05,360 --> 00:10:08,400 Speaker 1: of areas kind of rumor of course, the legendary and airlines. 156 00:10:09,040 --> 00:10:11,199 Speaker 1: Jared Cyberg looks at a lot of things we could 157 00:10:11,240 --> 00:10:12,880 Speaker 1: do this day of the Union thing, but I think 158 00:10:12,880 --> 00:10:16,400 Speaker 1: we've done it John like eight times this morning, So Jared, 159 00:10:16,480 --> 00:10:20,200 Speaker 1: I want to go to Cyberg currencies. And what I 160 00:10:20,280 --> 00:10:25,040 Speaker 1: learned in Davos is government people are waiting, waiting, waiting, waiting, 161 00:10:25,080 --> 00:10:30,040 Speaker 1: with one exception, and that is I see os Jared Cyberg, 162 00:10:30,120 --> 00:10:33,440 Speaker 1: what is an i c O and does Washington have 163 00:10:33,640 --> 00:10:37,640 Speaker 1: their attention on I c O s? Yeah, sure, so 164 00:10:37,960 --> 00:10:41,680 Speaker 1: great question. Um. I c O s are essentially a 165 00:10:41,920 --> 00:10:44,520 Speaker 1: backdoor way to do an I p O, a way 166 00:10:44,559 --> 00:10:49,880 Speaker 1: to raise money from investors, and uh, you know, Washington 167 00:10:50,280 --> 00:10:54,120 Speaker 1: is not opposed to the plumbing of an i c 168 00:10:54,160 --> 00:10:58,640 Speaker 1: O of of you know, creating a digital coin instead 169 00:10:58,679 --> 00:11:02,480 Speaker 1: of a ship era of stock. What they don't like 170 00:11:03,040 --> 00:11:05,880 Speaker 1: is doing i c O s that are not registered 171 00:11:05,920 --> 00:11:09,319 Speaker 1: with the SEC, where you don't get all the protections. 172 00:11:09,600 --> 00:11:12,319 Speaker 1: Are we going to get to a point where that's 173 00:11:12,400 --> 00:11:16,400 Speaker 1: the toggle switch to whichever way we're going in crypto? 174 00:11:16,600 --> 00:11:20,600 Speaker 1: This crypto that is that going to be the key thing? 175 00:11:21,600 --> 00:11:24,240 Speaker 1: So I really think you need to separate, uh it 176 00:11:24,320 --> 00:11:27,400 Speaker 1: out I c O s versus you know, bitcoin and 177 00:11:27,800 --> 00:11:31,439 Speaker 1: digital currencies. And I think the I c O I 178 00:11:31,600 --> 00:11:34,800 Speaker 1: c O approach is something that's going to survive and 179 00:11:34,920 --> 00:11:37,640 Speaker 1: something that will be useful, but you're not going to 180 00:11:37,760 --> 00:11:39,600 Speaker 1: be able to you know. One of the things we 181 00:11:39,720 --> 00:11:43,439 Speaker 1: always argue is that if you build a better mousetrap, 182 00:11:43,840 --> 00:11:48,200 Speaker 1: but it's all premised on getting around consumer protections and 183 00:11:48,320 --> 00:11:53,600 Speaker 1: other anti money laundering rules. That's not viable. And you 184 00:11:53,640 --> 00:11:56,439 Speaker 1: know I c O s that are designed to do that, 185 00:11:56,440 --> 00:12:01,640 Speaker 1: that's not going to survive. Yeah. I I look at 186 00:12:02,400 --> 00:12:05,200 Speaker 1: I c O s and what happened in Korea, what 187 00:12:05,280 --> 00:12:08,640 Speaker 1: happened in China. That was certainly a huge issue, a 188 00:12:08,720 --> 00:12:11,600 Speaker 1: point of discussion. I should say, in Davos, where is 189 00:12:11,640 --> 00:12:14,720 Speaker 1: Secretary Minusia and this and where is Washington on this? 190 00:12:15,240 --> 00:12:17,440 Speaker 1: Or is it just something removed in the in the 191 00:12:17,559 --> 00:12:20,680 Speaker 1: in the distance. No, actually, I think this is moving 192 00:12:21,160 --> 00:12:25,800 Speaker 1: very quickly from the back of the front. Yeah. And 193 00:12:25,840 --> 00:12:29,200 Speaker 1: we saw a Minusian yesterday. Uh, you know his testimony 194 00:12:29,280 --> 00:12:32,560 Speaker 1: before Senate Banking. He was asked about it, and he 195 00:12:32,679 --> 00:12:36,680 Speaker 1: basically said, you know, our money laundering rules have to apply, 196 00:12:36,840 --> 00:12:40,160 Speaker 1: Our Bank Secrecy Act rules have to apply, and we 197 00:12:40,200 --> 00:12:44,520 Speaker 1: expect other countries to apply their money laundering rules to this. 198 00:12:44,679 --> 00:12:49,559 Speaker 1: And that's a much heavier regulated product than what's existed 199 00:12:50,200 --> 00:12:52,920 Speaker 1: before we even get onto cybercurrency. So I'm already confused 200 00:12:52,960 --> 00:12:56,400 Speaker 1: about the Treasury secretaries current stance on the actual currency 201 00:12:56,679 --> 00:13:01,040 Speaker 1: of the United States of America. I think you to last, 202 00:13:03,600 --> 00:13:10,240 Speaker 1: what's your rate? I think that he is very carefully 203 00:13:10,280 --> 00:13:13,800 Speaker 1: trying to walk back um you know, some of the 204 00:13:13,840 --> 00:13:17,280 Speaker 1: comments that got so much attention and trying to go 205 00:13:17,360 --> 00:13:22,520 Speaker 1: back to a more neutral stance. And uh, you know, 206 00:13:22,559 --> 00:13:25,400 Speaker 1: I think he was asked this yesterday as well, and 207 00:13:26,000 --> 00:13:29,400 Speaker 1: I thought he did a pretty effective tap dance, uh 208 00:13:29,480 --> 00:13:33,200 Speaker 1: to say, oh, I was misunderstood, you know, was out 209 00:13:33,200 --> 00:13:35,680 Speaker 1: of context. I mean all the stuff that you typically 210 00:13:35,760 --> 00:13:39,960 Speaker 1: here when somebody's realized that they may have stepped a 211 00:13:40,000 --> 00:13:44,160 Speaker 1: little too far out of bounce the reaction of the 212 00:13:44,200 --> 00:13:46,080 Speaker 1: rest of the world. Do you think that's what pushed 213 00:13:46,120 --> 00:13:48,160 Speaker 1: him to take a step back, Jared? Or did this 214 00:13:48,280 --> 00:13:54,760 Speaker 1: come from within this administration? I'm not sure that's an 215 00:13:54,800 --> 00:13:58,440 Speaker 1: either or answer. I think it's a both. I think 216 00:13:58,480 --> 00:14:03,400 Speaker 1: that uh, he really he likely realized the gravity of 217 00:14:03,440 --> 00:14:06,439 Speaker 1: the quotes that we were pulled out of that conversation, 218 00:14:06,640 --> 00:14:10,760 Speaker 1: and I'm sure, uh there was pushback from you know, 219 00:14:10,840 --> 00:14:15,679 Speaker 1: Gary Cohene and others within the administration, uh, saying you 220 00:14:15,720 --> 00:14:18,840 Speaker 1: don't want to rattle these markets, and JAREDA maybe outside 221 00:14:18,840 --> 00:14:22,120 Speaker 1: your preview, but we're gonna go to it anyways. Infrastructure, UM, 222 00:14:22,160 --> 00:14:25,480 Speaker 1: I've had three conversations on infrastructure. In the summary of 223 00:14:25,520 --> 00:14:29,040 Speaker 1: all them all different, but the summary simple, nothing's gonna happen. 224 00:14:29,200 --> 00:14:32,640 Speaker 1: Can you explain to our audience why Washington cannot take 225 00:14:32,680 --> 00:14:36,640 Speaker 1: a leadership position on infrastructure. I would just like them 226 00:14:36,680 --> 00:14:40,200 Speaker 1: to fill the potholes on the road outside of my house. So, 227 00:14:40,680 --> 00:14:44,920 Speaker 1: I mean, you know, you know, it's um, it's a 228 00:14:45,040 --> 00:14:48,200 Speaker 1: question of money. You know, you know, the county claims 229 00:14:48,200 --> 00:14:51,000 Speaker 1: they don't have the money, the state doesn't have the money. 230 00:14:51,040 --> 00:14:53,680 Speaker 1: And now the FEDS are basically saying, where are we 231 00:14:53,720 --> 00:14:57,880 Speaker 1: going to get this one point five trillion dollars from? 232 00:14:57,960 --> 00:15:01,320 Speaker 1: And you know, to to kind of circle back to 233 00:15:01,360 --> 00:15:03,920 Speaker 1: where we started, you know, with State of the Union 234 00:15:03,960 --> 00:15:07,440 Speaker 1: a little bit. Uh, there was no talk of deficits, 235 00:15:07,600 --> 00:15:10,800 Speaker 1: of cutting the debt, you know, any any of that. 236 00:15:11,400 --> 00:15:15,920 Speaker 1: And so, you know, you have Republicans who are reluctant 237 00:15:16,000 --> 00:15:18,480 Speaker 1: to spend another one point five trillion. You have a 238 00:15:18,600 --> 00:15:22,760 Speaker 1: president who's not really looking at entitlement reforms are other 239 00:15:22,880 --> 00:15:28,920 Speaker 1: things that maybe could offset that, And so we get stalemate. Jarisy, 240 00:15:29,000 --> 00:15:31,880 Speaker 1: but Accoln Washington Research Group policy analysts joining us on 241 00:15:31,920 --> 00:15:35,440 Speaker 1: the situation in the nation's capital. If stalemate also a 242 00:15:35,480 --> 00:15:40,080 Speaker 1: consequence of the mid terms at the end of this year, Jarrett, Well, sure, 243 00:15:40,120 --> 00:15:43,440 Speaker 1: I mean, although we're not quite at that point yet 244 00:15:43,560 --> 00:15:48,160 Speaker 1: where Washington still can't get stuff done. UM. So, if 245 00:15:48,200 --> 00:15:54,760 Speaker 1: if somebody had a more limited infrastructure plan that could 246 00:15:54,800 --> 00:15:58,320 Speaker 1: be paid for, I still think you could get bipartisan 247 00:15:58,400 --> 00:16:01,320 Speaker 1: support for it. Um. You know, the problem is that 248 00:16:01,400 --> 00:16:06,280 Speaker 1: this White House does not put forward detailed plans, and 249 00:16:06,840 --> 00:16:09,840 Speaker 1: so nothing happened. Jared, Thank you so much. Jared Seedburg 250 00:16:09,920 --> 00:16:11,400 Speaker 1: with some of what we've heard from any number of 251 00:16:11,440 --> 00:16:25,640 Speaker 1: guests today, nothing happens. He's a former chairman of the 252 00:16:25,640 --> 00:16:29,520 Speaker 1: President's Council of Economic Advisor, that would be President Obama. 253 00:16:29,600 --> 00:16:34,400 Speaker 1: Austin Goulsby joins us now from the Boost School Chicago. Austin, 254 00:16:34,520 --> 00:16:38,200 Speaker 1: you've spent a few years looking at public policy, any 255 00:16:38,280 --> 00:16:42,280 Speaker 1: number of smart papers on it. The consumer gains from 256 00:16:42,320 --> 00:16:45,280 Speaker 1: direct broadcast satellites, that was a Barnburn I read every 257 00:16:45,320 --> 00:16:50,520 Speaker 1: word of that evidence on learning and network externalities. Say 258 00:16:50,640 --> 00:16:55,080 Speaker 1: what you on infrastructure? You're in Chicago, you know the 259 00:16:55,160 --> 00:16:59,240 Speaker 1: value of the interstate highway system growing up in Wit. 260 00:16:59,280 --> 00:17:02,040 Speaker 1: Are your caliph for in you? How do we jump 261 00:17:02,080 --> 00:17:09,280 Speaker 1: start infrastructure after we heard Trump infrastructure last night, Well, Tom, 262 00:17:09,280 --> 00:17:13,119 Speaker 1: thanks for having me back. By the way, I was 263 00:17:13,240 --> 00:17:17,400 Speaker 1: a little disappointed by the I like the tone of 264 00:17:17,080 --> 00:17:20,560 Speaker 1: a lot of what President Trump said in the State 265 00:17:20,560 --> 00:17:22,760 Speaker 1: of Union last night. It just seemed like he was 266 00:17:22,840 --> 00:17:25,119 Speaker 1: trying to take a bi part as a note. But 267 00:17:25,160 --> 00:17:29,480 Speaker 1: I was kind of disappointed on the infrastructure part because 268 00:17:29,760 --> 00:17:32,600 Speaker 1: he didn't seem to have much of a plan. A 269 00:17:32,760 --> 00:17:35,520 Speaker 1: plan was I call on you Congress to come up 270 00:17:35,520 --> 00:17:40,000 Speaker 1: with a plan. Um he said one point five trillion dollars. 271 00:17:40,680 --> 00:17:42,879 Speaker 1: What we're gonna have to see now is where's the money? 272 00:17:42,920 --> 00:17:44,919 Speaker 1: I mean, that's always the problem when it comes to 273 00:17:44,960 --> 00:17:49,239 Speaker 1: the infrastructure, is we gotta we gotta wrap our heads around. Uh, 274 00:17:49,320 --> 00:17:52,320 Speaker 1: it does cost money to build this stuff and this stuff, 275 00:17:53,040 --> 00:17:56,240 Speaker 1: but it helps economic growth. Austin, we didn't have that 276 00:17:56,359 --> 00:18:00,600 Speaker 1: problem when tax reforms slash text cuts. When you said 277 00:18:00,640 --> 00:18:04,480 Speaker 1: where's the money? With tax cuts, everybody said, everybody voting 278 00:18:04,480 --> 00:18:07,199 Speaker 1: for it said, you know, a trillionaire, A trillionaire, who's counting? 279 00:18:07,880 --> 00:18:10,480 Speaker 1: I mean, why are we having the same discussion about 280 00:18:10,520 --> 00:18:14,560 Speaker 1: infrastructure when, without question, other than roads to nowhere, it 281 00:18:14,640 --> 00:18:20,879 Speaker 1: benefits all. Look, I agree, And and that's what I 282 00:18:20,920 --> 00:18:25,880 Speaker 1: was saying during the tax reform slash tax bill debate, 283 00:18:26,160 --> 00:18:30,280 Speaker 1: is this is a big number. You know, arguably one 284 00:18:30,320 --> 00:18:33,600 Speaker 1: and a half trillion with a bunch of accounting gimmicks 285 00:18:33,600 --> 00:18:36,200 Speaker 1: that if you don't count the accounting gimmicks, that might 286 00:18:36,200 --> 00:18:39,840 Speaker 1: cost three trillion or more. Imagine how much infrastructure you 287 00:18:39,840 --> 00:18:44,320 Speaker 1: can buy for three trillion dollars. Um Uh. I don't 288 00:18:44,400 --> 00:18:48,840 Speaker 1: see how you know cutting the estate tax for for 289 00:18:48,880 --> 00:18:51,480 Speaker 1: people making more than twenty million, who have a state 290 00:18:51,560 --> 00:18:55,280 Speaker 1: that more than twenty million dollars, that that raises our 291 00:18:55,359 --> 00:18:59,920 Speaker 1: productivity or our growth more than it would fixing our airport. 292 00:19:00,000 --> 00:19:03,000 Speaker 1: It's building out our highways, fixing our ports. I mean, 293 00:19:03,640 --> 00:19:07,360 Speaker 1: this is this should be more of a priority then 294 00:19:07,440 --> 00:19:09,760 Speaker 1: it seems to be. And I don't quite understand why. 295 00:19:09,920 --> 00:19:13,359 Speaker 1: Austin Professor Jonathan, Here's something I don't quite understand is 296 00:19:13,400 --> 00:19:15,760 Speaker 1: what's happened to a massive group of individuals that I 297 00:19:15,840 --> 00:19:19,440 Speaker 1: heard so much from over several years where interest rates 298 00:19:19,440 --> 00:19:21,680 Speaker 1: were record lows, all time loads in the United States 299 00:19:21,720 --> 00:19:25,000 Speaker 1: and across Europe, where these individuals would say, there's the 300 00:19:25,000 --> 00:19:28,280 Speaker 1: opportunity go out there and borrow and do something with 301 00:19:28,359 --> 00:19:31,200 Speaker 1: that cash. And now I don't hear that as much anymore. 302 00:19:31,240 --> 00:19:34,680 Speaker 1: In fact, I hear people complaining. I hear people fearmongering 303 00:19:34,720 --> 00:19:36,919 Speaker 1: about the budget deficit, about what will happen with the 304 00:19:36,920 --> 00:19:40,920 Speaker 1: debt load? Those people were calling for this several years ago. 305 00:19:41,000 --> 00:19:45,000 Speaker 1: So what happened, Well, you know, you've you've hit on 306 00:19:45,080 --> 00:19:49,960 Speaker 1: the new reality of American politics, which is the hypocrisy 307 00:19:50,080 --> 00:19:52,560 Speaker 1: doesn't make any difference anymore. It used to be if 308 00:19:52,560 --> 00:19:55,560 Speaker 1: you said something today that was the exact opposite of 309 00:19:55,600 --> 00:19:58,399 Speaker 1: what you said eighteen months ago, you at least, you know, 310 00:19:58,480 --> 00:20:00,480 Speaker 1: Tim Russard would kind of put that in your faith. 311 00:20:00,520 --> 00:20:03,560 Speaker 1: You at least had to squirm a little, if not 312 00:20:03,760 --> 00:20:06,000 Speaker 1: come up with an explanation of why you thought it 313 00:20:06,080 --> 00:20:09,240 Speaker 1: was different for you know now from them now, I 314 00:20:09,320 --> 00:20:12,320 Speaker 1: will say the Republicans have done that, and now the 315 00:20:12,400 --> 00:20:17,080 Speaker 1: Democrats also are piling on in that. I think the 316 00:20:17,119 --> 00:20:21,720 Speaker 1: problem is the following. When it was President Obama saying 317 00:20:22,480 --> 00:20:26,000 Speaker 1: let's borrow money to build out infrastructure because interest rates 318 00:20:26,000 --> 00:20:29,199 Speaker 1: are historically epically low, now would be the time to 319 00:20:29,240 --> 00:20:32,360 Speaker 1: do it. The Republicans were not going to allow him 320 00:20:32,800 --> 00:20:36,240 Speaker 1: to borrow to do that. And now that it's the 321 00:20:36,280 --> 00:20:40,840 Speaker 1: Republicans in control, the Democrats are not going to allow 322 00:20:41,760 --> 00:20:45,800 Speaker 1: the reverse a half the Republican Party wouldn't before that, 323 00:20:46,320 --> 00:20:49,199 Speaker 1: and so they would need support of the Democrats. And 324 00:20:49,200 --> 00:20:51,960 Speaker 1: the Democrats say, wait a minute. You know you don't 325 00:20:51,960 --> 00:20:54,960 Speaker 1: want to do it the way we that we've historically 326 00:20:55,040 --> 00:20:57,960 Speaker 1: done it. You know, you you want to try to 327 00:20:57,960 --> 00:21:01,960 Speaker 1: turn it over to the private sector. Um So, I 328 00:21:02,000 --> 00:21:03,879 Speaker 1: think that's where they are. Austin. I don't know if 329 00:21:03,880 --> 00:21:06,399 Speaker 1: you've done under. Steve Levitt of freak Adomics has done it. 330 00:21:06,480 --> 00:21:09,720 Speaker 1: But the gas tax is always a third rail, particularly 331 00:21:09,760 --> 00:21:12,760 Speaker 1: across all of rural America. Are we just really back to, 332 00:21:13,600 --> 00:21:15,760 Speaker 1: you know where somebody says in the Oval Office, Mr 333 00:21:15,800 --> 00:21:18,760 Speaker 1: Hassett or others, I'm sorry, Mr President, but you can't 334 00:21:18,800 --> 00:21:21,040 Speaker 1: get a gas text through because it's a third rail 335 00:21:21,640 --> 00:21:25,840 Speaker 1: in Kansas. Is that where we really are? I don't know. 336 00:21:25,960 --> 00:21:31,159 Speaker 1: You know, you saw Senator Cornyn from Texas, which of 337 00:21:31,240 --> 00:21:35,240 Speaker 1: all states you think Texas would be, you know, among 338 00:21:35,359 --> 00:21:40,320 Speaker 1: the most anti gas tex uh talk about the gas tax, 339 00:21:41,200 --> 00:21:43,280 Speaker 1: you know, not in a positive way, but not to 340 00:21:43,480 --> 00:21:48,280 Speaker 1: completely rule it out. But my intuition is is what 341 00:21:48,359 --> 00:21:51,440 Speaker 1: you say, the Kindress is not going to be able 342 00:21:51,600 --> 00:21:55,479 Speaker 1: to agree cross party lines on that constant goes with us. 343 00:21:55,480 --> 00:21:58,520 Speaker 1: A former chairman of the President's Council of Economic I 344 00:22:13,280 --> 00:22:15,600 Speaker 1: know you're not a big fitness guy. But you know 345 00:22:15,640 --> 00:22:20,359 Speaker 1: there is a fitness tracking app called Strava. He's not 346 00:22:20,440 --> 00:22:22,560 Speaker 1: a big fitness guy, he says, I can't imagine I'm 347 00:22:22,600 --> 00:22:26,160 Speaker 1: wearing a no, no, no, but there is a fitness 348 00:22:26,200 --> 00:22:30,119 Speaker 1: tracking please, there's a this is this is connected to 349 00:22:30,160 --> 00:22:33,600 Speaker 1: what we're gonna talk about. There's a fitness tracking app 350 00:22:33,640 --> 00:22:38,080 Speaker 1: called Strava, and it has about a billion activities and 351 00:22:38,560 --> 00:22:41,639 Speaker 1: three trillion points of latitude and so on. Anyway, a 352 00:22:41,720 --> 00:22:46,440 Speaker 1: twenty year old year old Australian university student, Nathan Rousser, 353 00:22:46,960 --> 00:22:50,280 Speaker 1: he noticed that the map showed locations and running routines 354 00:22:50,280 --> 00:22:54,760 Speaker 1: of US military personnel all over the world. That kind 355 00:22:54,800 --> 00:22:58,679 Speaker 1: of technology gets out there and it's very hard to 356 00:22:58,720 --> 00:23:01,320 Speaker 1: put it back in the bottle. And our next guest 357 00:23:01,720 --> 00:23:07,120 Speaker 1: beast car Charter. I'm sorry, chat, I hope I did okay, professor. 358 00:23:07,760 --> 00:23:11,840 Speaker 1: Professor disabused me of my bad pronunciation. You are the 359 00:23:11,880 --> 00:23:15,800 Speaker 1: senior associate in International Business and Finance at Tough University. 360 00:23:16,000 --> 00:23:19,080 Speaker 1: I'm sure that you saw this news report and this 361 00:23:19,160 --> 00:23:22,400 Speaker 1: plays into some research that you've recently done. You've heard 362 00:23:22,400 --> 00:23:25,840 Speaker 1: about this, correct, Yeah, absolutely, yeah. We seem to be 363 00:23:25,880 --> 00:23:30,440 Speaker 1: getting news reports almost on a daily basis of user 364 00:23:30,560 --> 00:23:34,320 Speaker 1: data being compromised in one form of the other. So 365 00:23:35,400 --> 00:23:38,320 Speaker 1: at some point it gets you practically need an app 366 00:23:38,400 --> 00:23:41,560 Speaker 1: to keep track of all these apps that are kind 367 00:23:41,600 --> 00:23:44,480 Speaker 1: of opening us up to all kinds of vulnerabilities. Tell 368 00:23:44,560 --> 00:23:49,359 Speaker 1: us about digital trust and what you discovered? Well, I 369 00:23:49,400 --> 00:23:52,600 Speaker 1: think as we sort of look at where we are 370 00:23:52,840 --> 00:23:58,040 Speaker 1: in our state of relationships, the relationship with the digital economy, 371 00:23:58,320 --> 00:24:02,199 Speaker 1: our dependence has grown, uh, you know, grown to addictive levels. 372 00:24:02,960 --> 00:24:07,760 Speaker 1: Our sense of distrust has also grown and certainly seen 373 00:24:07,920 --> 00:24:12,119 Speaker 1: was in many ways, uh turning point, and essentially that 374 00:24:12,280 --> 00:24:17,040 Speaker 1: there are three things that I believe we are not uniformly, 375 00:24:17,080 --> 00:24:21,040 Speaker 1: but around the world. We're concerned about were concerned about privacy, 376 00:24:21,080 --> 00:24:24,359 Speaker 1: were concerned about security, and we're concerned about reliability. And 377 00:24:24,400 --> 00:24:26,560 Speaker 1: the extent to which these concerns are high or low 378 00:24:26,920 --> 00:24:29,359 Speaker 1: varies depending on where you are in the world. So 379 00:24:30,160 --> 00:24:33,359 Speaker 1: largely speaking, we find that in the developed world we 380 00:24:33,440 --> 00:24:37,760 Speaker 1: are much more concerned than in emerging markets where people 381 00:24:37,800 --> 00:24:40,520 Speaker 1: are still new to this technology and they're excited about it. Okay, 382 00:24:40,840 --> 00:24:42,679 Speaker 1: I want to ask a couple of basic questions, and 383 00:24:42,720 --> 00:24:46,640 Speaker 1: these aren't fancy mckensey questions or anything like that. Are 384 00:24:46,640 --> 00:24:50,760 Speaker 1: our computers at home, are iPads at home our cell phones? 385 00:24:50,840 --> 00:24:54,840 Speaker 1: Where ever? Are they quote unquote safe because that's where 386 00:24:54,840 --> 00:25:01,000 Speaker 1: the ultimate distrust comes uh well quote and it is 387 00:25:01,160 --> 00:25:05,200 Speaker 1: the operative term here, So they're safe as an uh. 388 00:25:05,240 --> 00:25:08,800 Speaker 1: You know, if somebody were to really put their mind 389 00:25:08,840 --> 00:25:12,879 Speaker 1: against getting into your device and uh and peer into 390 00:25:12,920 --> 00:25:16,119 Speaker 1: your day day to day lives, they could potentially do that. 391 00:25:16,600 --> 00:25:20,680 Speaker 1: But you're one among uh you know, three billion people 392 00:25:21,000 --> 00:25:24,720 Speaker 1: who are on the internet. So you know, if I'm 393 00:25:24,720 --> 00:25:27,199 Speaker 1: going to waste my time trying to get into your system, 394 00:25:27,480 --> 00:25:30,320 Speaker 1: I probably would go into you know somebody or not 395 00:25:30,359 --> 00:25:33,040 Speaker 1: that you're not important, but you know there are many others. 396 00:25:33,320 --> 00:25:36,919 Speaker 1: So I think in reality yeah, in reality not, you know, 397 00:25:37,600 --> 00:25:39,760 Speaker 1: it's it's more or less sick. But if somebody could 398 00:25:39,920 --> 00:25:41,680 Speaker 1: want want to get in, they could do it. I'm 399 00:25:41,680 --> 00:25:44,240 Speaker 1: like everybody else. Pay You've got the fancy imach at home, 400 00:25:44,280 --> 00:25:45,879 Speaker 1: and you bring it home and you're unwrap it and 401 00:25:45,960 --> 00:25:49,080 Speaker 1: you throw the perfect box out and you've got that 402 00:25:49,320 --> 00:25:52,480 Speaker 1: lens looking at you on the iMac and you're going, 403 00:25:52,720 --> 00:25:55,320 Speaker 1: who's on the other side of that lens? Well, and 404 00:25:55,359 --> 00:25:59,240 Speaker 1: with the with the pervasiveness of Alexa and these interact 405 00:25:59,320 --> 00:26:02,160 Speaker 1: I don't have the you will someone will I mean, 406 00:26:02,160 --> 00:26:04,520 Speaker 1: whether it's Alexa, whether it's so Nos, whether it is 407 00:26:04,560 --> 00:26:08,359 Speaker 1: someone speaker that well. I mean Apple is also working 408 00:26:08,400 --> 00:26:11,520 Speaker 1: on this, and Professor Chuck Gravorty, I'm wondering if you 409 00:26:11,560 --> 00:26:15,480 Speaker 1: could speak about how this is going to affect business 410 00:26:15,560 --> 00:26:19,600 Speaker 1: because Facebook has come under a lot of criticism because 411 00:26:19,640 --> 00:26:25,040 Speaker 1: it doesn't necessarily police what goes on it's site. Yeah. 412 00:26:25,080 --> 00:26:28,160 Speaker 1: So Facebook, of course has been almost the poster child 413 00:26:28,760 --> 00:26:34,240 Speaker 1: for you know, our concern and also a post a 414 00:26:34,359 --> 00:26:36,879 Speaker 1: child for our total dependence on the digital system. You know, 415 00:26:36,920 --> 00:26:40,280 Speaker 1: two billion people checked their Facebook post every uh, you know, 416 00:26:40,320 --> 00:26:46,000 Speaker 1: every month. Um, I think Facebook has turned the page 417 00:26:46,160 --> 00:26:49,160 Speaker 1: on two thousand and eighteen. Uh. You know, Mark Dacoberg 418 00:26:49,200 --> 00:26:51,560 Speaker 1: came out the gate in the New yeark kind of saying, Okay, 419 00:26:51,600 --> 00:26:53,960 Speaker 1: this is the year when we fix everything. And essentially 420 00:26:53,960 --> 00:26:57,879 Speaker 1: what he has done is he's uh pushed uh the 421 00:26:57,920 --> 00:27:01,000 Speaker 1: buck over to the users and he's said it, I'm 422 00:27:01,000 --> 00:27:05,840 Speaker 1: going to deprioritize third party publishers and make our interactions 423 00:27:05,840 --> 00:27:09,520 Speaker 1: on Facebook more meaningful by prioritizing personal posts. And I'm 424 00:27:09,520 --> 00:27:13,080 Speaker 1: going to ask users to rate media in terms of 425 00:27:13,119 --> 00:27:16,720 Speaker 1: their trustworthiness. And I think that is just, uh, you know, 426 00:27:16,920 --> 00:27:19,840 Speaker 1: not taking responsibility. You know, Facebook needs to come to 427 00:27:19,920 --> 00:27:22,360 Speaker 1: the realization that they're no longer a town square. They 428 00:27:22,440 --> 00:27:26,240 Speaker 1: are the major source of news and information and they 429 00:27:26,240 --> 00:27:29,399 Speaker 1: need to own up to the content. So what is 430 00:27:29,440 --> 00:27:32,560 Speaker 1: your prescription for Mr Zuckerberg to do? They're fighting this 431 00:27:32,680 --> 00:27:34,880 Speaker 1: tooth and nail and they're managing the message, which they've 432 00:27:34,880 --> 00:27:38,160 Speaker 1: always been good at. What does bascars Checkerboti say they 433 00:27:38,240 --> 00:27:42,200 Speaker 1: should do? Yeah, I think there are three things I 434 00:27:42,240 --> 00:27:45,200 Speaker 1: should do. One is recognized that they are a major 435 00:27:45,280 --> 00:27:49,920 Speaker 1: news source. But Americans get their news from Facebook, so 436 00:27:50,160 --> 00:27:53,520 Speaker 1: they need to be able to vet the content that's 437 00:27:53,560 --> 00:27:55,400 Speaker 1: on it, and if they can't vet it, at least 438 00:27:55,400 --> 00:27:59,199 Speaker 1: put a note against it. And uh, they can use 439 00:27:59,280 --> 00:28:02,679 Speaker 1: human in eligence and artificial intelligence to do that. We 440 00:28:02,800 --> 00:28:06,000 Speaker 1: hear every day about how smart everything is getting, So 441 00:28:06,080 --> 00:28:09,000 Speaker 1: why can't Facebook get smart enough in terms of algorithms 442 00:28:09,040 --> 00:28:11,000 Speaker 1: to sort through all the content that's on it. That's 443 00:28:11,040 --> 00:28:13,159 Speaker 1: thing number one. Thing number two is some of the 444 00:28:13,200 --> 00:28:16,439 Speaker 1: biggest risks that we face in terms of what's posted 445 00:28:16,480 --> 00:28:18,520 Speaker 1: on Facebook is not here in the United States, but 446 00:28:18,680 --> 00:28:23,199 Speaker 1: in the developing world where Facebook is growing explosively. So 447 00:28:23,320 --> 00:28:26,879 Speaker 1: countries like Myanmar where ethnic cleansing. A lot of that 448 00:28:27,000 --> 00:28:30,040 Speaker 1: happened on the backs of rumors spread on Facebook. So 449 00:28:30,080 --> 00:28:32,800 Speaker 1: Facebook needs to get on the ground and understand the 450 00:28:32,840 --> 00:28:36,119 Speaker 1: local context of these UH societies that it has spread 451 00:28:36,160 --> 00:28:38,880 Speaker 1: so fast and where people you know. For them, Facebook 452 00:28:38,960 --> 00:28:41,320 Speaker 1: is the Internet, and thing number three is they need 453 00:28:41,360 --> 00:28:44,520 Speaker 1: to get off their total dependence on advertising revenue. They 454 00:28:44,520 --> 00:28:47,360 Speaker 1: need to find other ways in which they can make money. 455 00:28:47,480 --> 00:28:50,760 Speaker 1: So companies like Google, companies like Amazon, companies like Netflix. 456 00:28:50,760 --> 00:28:53,560 Speaker 1: I figured it out. What can't Facebook do that? Mascar's 457 00:28:53,600 --> 00:28:55,760 Speaker 1: check about it, whether with tough as we look at 458 00:28:56,600 --> 00:29:05,160 Speaker 1: distrust on the Internet. You thanks for listening to the 459 00:29:05,200 --> 00:29:11,680 Speaker 1: Bloomberg Surveillance podcast. Subscribe and listen to interviews on Apple Podcasts, SoundCloud, 460 00:29:12,040 --> 00:29:16,280 Speaker 1: or whichever podcast platform you prefer. I'm on Twitter at 461 00:29:16,320 --> 00:29:20,520 Speaker 1: Tom Keane before the podcast. You can always catch us worldwide. 462 00:29:21,040 --> 00:29:22,120 Speaker 1: I'm Bloomberg Radio.