Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
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Speaker 2: Terminal and the Bloomberg Business app Danny if you had
Speaker 2: any research writing. Everyone's on the lookout for signs of
Speaker 2: an AI bubble, Yet the market continues to climb the
Speaker 2: walls of bubble worries. Joined us now for more ed
Speaker 2: Welcome to the program, sir, Two part question, what's the
Speaker 2: bubble and what is this?
Speaker 3: Well, at this point, I think we're getting into bubble territory.
Speaker 3: For sure. We've got the forward pe of the S
Speaker 3: and P five hundred around twenty three, and the peak
Speaker 3: during the previous tech bubble in the late nineteen nineties
Speaker 3: was twenty five. So we're getting close. But you know,
Speaker 3: the earning story has been phenomenally strong, particularly this year
Speaker 3: in the first and second quarters. Who would have thought
Speaker 3: with all the commotion coming out of Washington, And it
Speaker 3: looks us on the third quarter earning season, which is
Speaker 3: about to start, is going to be very strong as well.
Speaker 3: We're expecting ten percent a year over yere percent change,
Speaker 3: So the earnings are actually there to continue to drive
Speaker 3: this bull market higher. But I wouldn't want to see
Speaker 3: the valuation multiple go any higher than it is right now.
Speaker 2: At that earning story part of the reason, part of
Speaker 2: many reasons why a lot of people are still looking
Speaker 2: for the potential mounts up. Typically, a mounts up is
Speaker 2: a risk people want to own. Is it a risk
Speaker 2: you want to own? And are you willing to keep
Speaker 2: your bets on this market quite concentrated to take advantage
Speaker 2: of it?
Speaker 3: Well, you know, I think it hasn't been all valuation
Speaker 3: And the reality is again has been a earnings lead
Speaker 3: melt up, which is fine. I don't have a problem
Speaker 3: with that, and that's really not a melt up. The
Speaker 3: fundamentals are actually there. And oh, by the way, if
Speaker 3: this whole AI thing turns out to be a lot
Speaker 3: of hype and the companies that are spending all this
Speaker 3: money on AI infrastructure, have to kind of slow it down,
Speaker 3: and it's not exactly the end of the world. I mean,
Speaker 3: these companies are using cash flow to finance this. It's
Speaker 3: not like nineteen ninety nine where telecommunications companies did seller
Speaker 3: financing and there was a tremendous amount of debt because
Speaker 3: to do that they borrowed in the jump bond market.
Speaker 3: So there's a lot of credit in the bubble back then.
Speaker 3: This time around, it's cash flow, and if they have
Speaker 3: to slow it down, their profits are suddenly going to
Speaker 3: look even better.
Speaker 4: Well, and two of those companies, AMD and open Ai.
Speaker 4: The amdco Julie Sue said this yesterday. The more open
Speaker 4: ai deploys, the more revenue get and they get to
Speaker 4: share the upside. Does it concern you that this is
Speaker 4: so circular?
Speaker 3: Yeah, well, you know, I'm thinking of putting a few
Speaker 3: billion dollars into open ai and doing business with them.
Speaker 3: Everybody's playing the game here, So yeah, the circularity of
Speaker 3: it has got the market's really spooked. The market's got
Speaker 3: spooked about AI back in January, remember with deep seek,
Speaker 3: and so this is kind of the latest fear that
Speaker 3: we haven't seen anywhere near the kind of correction we
Speaker 3: saw with Deep Seek. I'm not that concerned about it.
Speaker 3: I think there is a lot of capital spending going on,
Speaker 3: and these companies, you know, unless they're misinformed, which I
Speaker 3: kind of doubt it. These hyperscalers, they know what's going on,
Speaker 3: and they know that the capacity of their system is
Speaker 3: getting stretched, is getting pushed by everybody using AI and
Speaker 3: try to figure out how to use it.
Speaker 4: Bezos said this week as well that investors are just
Speaker 4: having a hard time in the middle of excitement to
Speaker 4: distinguish between the good ideas and the bad ideas. How
Speaker 4: do you distinguish between the good and the bad?
Speaker 3: Well, I'm no better at it than anybody else's At
Speaker 3: this point, I'm going to assume that the hyperscalers, who
Speaker 3: basically are Magnificent seven kind of companies, know what they're doing,
Speaker 3: and they are you know, a lot of the investments
Speaker 3: are data centers. It's not like you know, right now,
Speaker 3: there's a lot of mystery about where the spending is going,
Speaker 3: and the data centers but themselves and that are actually
Speaker 3: the data is available monthly from the construction report that
Speaker 3: the government used to put out when they was open
Speaker 3: But that showed that data centers were running around forty
Speaker 3: billion dollars, and that's at an annual rate. That's times twelve.
Speaker 3: That's not a terrible number. Now, of course, once you
Speaker 3: build the actual structure, you've got to stuff it with
Speaker 3: all these semiconductor chiefs, and that that money is being spent.
Speaker 3: I don't think this is money down the drain. I
Speaker 3: think you know, this is for real.
Speaker 2: And there is an additional dimension that makes this rather
Speaker 2: strange that we have the US government picking winners at
Speaker 2: the same time intow Trilogy Metals, we have open AI
Speaker 2: picking winners too. We saw evidence of that in the
Speaker 2: last twenty four hours. Does that change your approach to
Speaker 2: start picking at.
Speaker 3: Well? You know, my attitude towards Washington is, it's amazing
Speaker 3: how well the economy does despite Washington. It's amazing how
Speaker 3: well the stock market does despite Washington. I don't I
Speaker 3: don't like the state capitalism, as you rightly called it.
Speaker 3: It doesn't it's not really necessary. The free market should
Speaker 3: be able to decide who the winners are and who
Speaker 3: the losers are. So it's more more a noise coming
Speaker 3: out of Washington. The signal we're really seeing the fundamentals
Speaker 3: as the economy continues to be extremely resilient. That's really
Speaker 3: the word for the economy. The past four years, we've
Speaker 3: had the most widely anticipated recession of all times. That
Speaker 3: didn't happen. I didn't think it would happen. And I
Speaker 3: think that's why the evaluation multiples are high, and that's
Speaker 3: why earning this so remarkably strong.
Speaker 2: Stay with us, multilintex Savanta's coming up off to this.
Speaker 5: Here.
Speaker 1: It is not a government shutdown.
Speaker 6: It's a beautiful morning in front of a beautiful waterfront.
Speaker 6: And I'm here with Kip Deevere, who's the co president
Speaker 6: of Areas Management, which oversees almost six hundred billion dollars,
Speaker 6: And thank you so much for being with us here.
Speaker 6: I do want to start where John was talking about
Speaker 6: this idea of the tech build out. How much private
Speaker 6: asset managers have been instrumental in that. I'm just wondering
Speaker 6: how much you are continuing to accelerate your investments into
Speaker 6: digital infrastructure, given that everyone is worried about an AI bubble?
Speaker 6: Are we investing too much? Are we seeing the fruitions
Speaker 6: of our money?
Speaker 7: Sure, so we've sort of transitioned that business to be
Speaker 7: broader in its scope. Historically we've been largely a lender
Speaker 7: to the space, so a senior lender and a mezzanine
Speaker 7: investor as well through our dead infrastructure business. We did
Speaker 7: a recent acquisition that you may be aware of, a
Speaker 7: business focused on industrial logistics investing mostly in Japan, but
Speaker 7: it's global and they have real digital infrastructure development capability,
Speaker 7: so we've started to roll that out. We've done two
Speaker 7: completed projects now in Tokyo.
Speaker 5: We have a third underway.
Speaker 7: Just on the outskirts of London, so we're getting more
Speaker 7: active on the development front. I think that the measured
Speaker 7: approach that we've taken getting into the market doesn't frankly
Speaker 7: put our investors at risk right Our goal is to
Speaker 7: generate great returns for our investors, So we think if
Speaker 7: you stay in tricky markets, hard to find entitle land,
Speaker 7: and then you're building really high quality facilities, which we
Speaker 7: think we are. Because we have an in house team
Speaker 7: that came with the acquisition, it's pretty easy for us
Speaker 7: to find great leases from investment grade tenants like viper scalers.
Speaker 6: Are you passing up opportunities that concern you? Do you
Speaker 6: see things out there that I.
Speaker 7: Think we're selective, and I think if you look historically
Speaker 7: in areas like this over the last twenty or thirty years,
Speaker 7: typically when this much capacity comes online, some of it,
Speaker 7: at the end of the day is going to have
Speaker 7: to be marginal.
Speaker 1: Right.
Speaker 7: These trends tend to lead to overbuilds in certain places.
Speaker 7: So I think us being selective and being measured and
Speaker 7: what we build is super super important.
Speaker 6: One thing that we've seen over the past five years
Speaker 6: is an incredible consolidation of market capitalization of the biggest
Speaker 6: asset managers, the biggest private asset managers. I'm thinking of
Speaker 6: the ones that you won't name, like Apollo and KKR,
Speaker 6: and of course areas defintely named. I'm just wondering whether
Speaker 6: you think this is the sort of path to follow,
Speaker 6: that you think the biggest are going to only get
Speaker 6: bigger and dominate this book.
Speaker 7: We've believed since the beginning Frankly of the company, the
Speaker 7: more scaled platform, both in terms of diversity of asset
Speaker 7: classes but also diversity of geography is it was a
Speaker 7: huge advantage. So we think we get better information to
Speaker 7: participate in more markets. We probably do better due diligence
Speaker 7: because we have better access points. So I think the
Speaker 7: both investing advantages but also the capital raising advantages are
Speaker 7: real and you'll see you see that with the growth
Speaker 7: of Varies, with the growth of Apollo, and growth of
Speaker 7: all the Blackstone KKR, all these folks that have consolidated
Speaker 7: share for you.
Speaker 6: Just actually did see another record year for fundraising, and
Speaker 6: it feels like it's accelerating with respect to how easily
Speaker 6: it is to really get interest from investors.
Speaker 1: What's sort of been the tipping point? Where are you
Speaker 1: seeing that interest really coming from?
Speaker 7: Yeah, I mean, we grew up raising most of the
Speaker 7: capital from the firm from institutions, so it was pensions,
Speaker 7: sovereign wealth funds, et cetera, et cetera. And we've really
Speaker 7: diversified the way that we raise capital today. So I
Speaker 7: would say an increased focus on the wealth channel for sure,
Speaker 7: an increase focus on what our insurance clients are looking
Speaker 7: for because they're very challenged in a tight spread, lower
Speaker 7: rate environment. So it's just become more and more diverse.
Speaker 7: And I think is we're able to educate and offer
Speaker 7: access to investors that didn't have access to certain products before.
Speaker 7: There's just a lot of uptakes from a new set
Speaker 7: of clients that are interested in what we can deliver
Speaker 7: it areas.
Speaker 6: How much is that going to be turbocharged by some
Speaker 6: of what's coming out of Washington, DC to open up
Speaker 6: some of the private as a management field for one KA.
Speaker 7: Accounts coming to I think our view is that it's
Speaker 7: probably a ways off for that to really provide a
Speaker 7: lot of lyft. But we are incredibly supportive obviously of
Speaker 7: bringing our products into channels where there's interest. And I
Speaker 7: do think that those groups of investors today who have
Speaker 7: not had access to alternatives deserve access to alternatives.
Speaker 6: So right now, one thing that is another theme for
Speaker 6: the year has been American exceptionalism and this question of
Speaker 6: is it still the best place to invest? And I wonder,
Speaker 6: as the co president of Areas, whether you see the
Speaker 6: greatest opportunity in the United States or whether you increasingly
Speaker 6: are expanding overseas that you see better investment.
Speaker 7: Opportunity well, And so I think holistically we've been looking
Speaker 7: to expand geographically for a host of different reasons, just
Speaker 7: to give our investors more access points in terms of
Speaker 7: geographic diversification and a class diversification. But to actually answer
Speaker 7: your question, I do think despite some of the instability
Speaker 7: that people may feel here, that most of the investors
Speaker 7: that we see around the world are most excited still
Speaker 7: about investing in America.
Speaker 6: It's one thing that we've seen sort of this idea
Speaker 6: that everything was going to fall apart in the first half,
Speaker 6: and suddenly we're talking about a reacceleration, and suddenly the
Speaker 6: M and A that everyone had been expecting is coming
Speaker 6: back online. We're actually seeing those deals come to place.
Speaker 6: How active has it gotten for you? I mean, how
Speaker 6: much you see this in your book?
Speaker 7: So I mean, look, the first three to four months
Speaker 7: of the year, we're pretty rocky, particularly up through April,
Speaker 7: and that really slowed transaction volume everywhere. But I'd say
Speaker 7: in most of the asset classes that we're in, everything
Speaker 7: is rallied back to where it was pre Liberation Day
Speaker 7: and even through that. So credit spreads are incredibly tight,
Speaker 7: whether you look at high grade corporates or high yield
Speaker 7: or loans. The equity markets are obviously up through highs.
Speaker 7: The thing that we're most excited about is actually kind
Speaker 7: of a shift for folks that see maybe some of
Speaker 7: those markets as expensive into some of our real assets businesses.
Speaker 7: So the recovery in real estate, which we think is
Speaker 7: real is offering a lot of opportunity for us to
Speaker 7: kind of play into the sectors that we like. We
Speaker 7: refer to kind of as the new economy real estate.
Speaker 7: So that's industrial, that's logistics, it's self storage, it's multifamily,
Speaker 7: and we're seeing, we talked about it for a moment earlier,
Speaker 7: a lot of investment in the infrastructure space, whether it's
Speaker 7: additional or toward digital.
Speaker 6: How much is that predicated on the idea of FED
Speaker 6: rate cuts or how much is that completely independent in
Speaker 6: a sort of secular bed on some sort of shift
Speaker 6: in the economy.
Speaker 7: I don't think it's particularly you know, reliant on rate cuts.
Speaker 7: I think rate cuts help equity more than it helps
Speaker 7: credit lending businesses.
Speaker 5: So our own.
Speaker 7: View is the yield curve is probably over predicting cuts.
Speaker 7: I frankly think the economy here is pretty good, and policy,
Speaker 7: while it's a bit restrictive, doesn't seem to be slowing
Speaker 7: too much down here in the States. So transaction activities
Speaker 7: picking up, and valuations, as I mentioned, have recovered in
Speaker 7: almost every asset class. So I do think we'll see
Speaker 7: a slow decrease here in rates to try to provide
Speaker 7: some relief and keep the economic growth that's slowed growing.
Speaker 7: But my own view is I don't think rates ring
Speaker 7: it down as quickly as maybe you're reading about in
Speaker 7: the newspaper.
Speaker 6: So I have a feeling I know how you're going
Speaker 6: to answer, But what concerns you more some sort of
Speaker 6: downturn of the next six months or some sort of
Speaker 6: reacceleration in inflation.
Speaker 7: The ladder the ladder, I mean, I think we see
Speaker 7: the economy as good, although the growth has slowed, and
Speaker 7: that's partially a result of rate increases by design to
Speaker 7: obviously try to deal with inflation. But I think that
Speaker 7: the real scary moment is that if you see a
Speaker 7: reignite of inflation and the FIT has to really dramatically
Speaker 7: rethink their policy, which I think has been one two
Speaker 7: leave rates where they are, slash, reduce them a bit,
Speaker 7: which is obviously going to accommodate more growth and more
Speaker 7: rise and valuation.
Speaker 2: Stay with us multile impex. Savannah's coming up off to this.
Speaker 6: I I'm here with Governor Ned Lamont of the Great
Speaker 6: State of Connecticut in this October is that what Anne
Speaker 6: Marie called it in Connecticut in the Delmar Harbor and Governor,
Speaker 6: thank you so much for being with us. I want
Speaker 6: to start with something that's an increasingly hot topic. We're
Speaker 6: here at a leader of businesses, with the leaders of
Speaker 6: businesses who oversee huge portfolios of money.
Speaker 1: How is governor, do you keep.
Speaker 6: Attracting this type of business to a state while providing
Speaker 6: some of the social services and other expenses that cause
Speaker 6: taxes to go up.
Speaker 8: Well, the folks here at the Greenwich Economic Forum are
Speaker 8: really important to the state, and the fintech sector, the
Speaker 8: financial services sector a big piece of our economy. We're
Speaker 8: part of the New York City financial ecosystem. I think
Speaker 8: what they like here is a little bit of certainty, instability.
Speaker 8: They sort of know where the state's going to go.
Speaker 8: Are taxes a little bit less and it's not a
Speaker 8: bad lifestyle.
Speaker 6: Are you concerned about what would happen if, say there
Speaker 6: is a changeover in the leadership in New York City,
Speaker 6: Let's say mayoral candidate Zoron Mumdanie does win and implement
Speaker 6: some of the policies that he puts out there. Are
Speaker 6: you concerned about the ramifications for a place like Greenwich
Speaker 6: truly relies on the ecosystem of the t state region
Speaker 6: a little bit.
Speaker 8: New York City is the financial capital of the world,
Speaker 8: and we're a big piece of it here as evidence
Speaker 8: of the economic form, and I want to make sure
Speaker 8: that the next mayor understands how important New York City
Speaker 8: is to that system and that's important to Connecticut.
Speaker 6: How confront are you about who the leader is in
Speaker 6: the Democratic Party right now? Do you have a sense
Speaker 6: of where the leadership really is coming from?
Speaker 8: Governors? Okay, I'm a little loaded for bear on that.
Speaker 8: I like governors. Governors have to get stuff done. Voters
Speaker 8: have to balance a budget, they have to do it
Speaker 8: on time. Governors can't shut down a government. Governors are
Speaker 8: sort of the opposite of what you see going on
Speaker 8: to Washington. I think on both sides ale, but in
Speaker 8: our case, the Democrats sees real leadership coming from the governors.
Speaker 5: But don't ask me to ask names.
Speaker 6: Well, but I'm wondering, though, how does a governor take
Speaker 6: that leadership when things are shut down in Washington, DC,
Speaker 6: And it seems like there's a real fissure right now
Speaker 6: in the party and tactics in approach in platform.
Speaker 8: I can tell you the governor's incredibly frustrated. Democrats are
Speaker 8: louder about it than Republicans. You know, we balance our budget,
Speaker 8: we do it based upon some assumptions in terms of
Speaker 8: what our relationship is with the federal government. If they
Speaker 8: pull the rug out from under you every week, seems
Speaker 8: to be happening right now, it makes it very difficult
Speaker 8: for that certainty of stability that the people in this room.
Speaker 6: Like, how much have you seen actual ramifications from the
Speaker 6: government shutdown in the form of funding that isn't coming through.
Speaker 8: It's not my first rodeo with these Trump shutdowns. So
Speaker 8: we went through all of our commissioners. We saw what's
Speaker 8: it most at risk? Where do you have reserves with
Speaker 8: which is women, infant and children probably only had a
Speaker 8: week it's worth of reserve there. So we've figured out
Speaker 8: how we backstop that snap, which is you know, food benefits.
Speaker 5: That's the end of this month.
Speaker 8: So we're watching very carefully where the risk is and
Speaker 8: i can't make up all the shortfall, but I'm trying
Speaker 8: my best to help out the most vulnerable.
Speaker 6: Well, how long do you have reserves to cover things?
Speaker 6: In other words, does funding run out? Should this shutdown
Speaker 6: continue for a long period of time.
Speaker 8: End of this month, you know, snap Benefits is probably
Speaker 8: seventy five million dollars a month. I cannot make up
Speaker 8: that shortfall. So if the federal government walks away, that's tough.
Speaker 8: If we had assurance the federal government is going to backstop,
Speaker 8: if we had to help it out for a couple
Speaker 8: of months and we'll get paid back, that's something else.
Speaker 5: We have none of that assurance.
Speaker 6: I guess I want to go back to the idea
Speaker 6: of leadership right now because we are beginning the midterm
Speaker 6: election cycle, and I wonder, as a Democrat in your
Speaker 6: second term as governor, how much do you feel allegiance
Speaker 6: to the Democratic Party versus something else, a MorphOS that's
Speaker 6: coming that doesn't necessarily have a label.
Speaker 8: Well, as governor, you feel strong allegiance to your state.
Speaker 5: I'm a homer for Connecticut.
Speaker 8: I'm Team Connecticut, and you know, Republican or Democrat, I
Speaker 8: try and get stuff done. Personally speaking, is I look
Speaker 8: at a lot of the Civil War down of Washington, DC,
Speaker 8: and I look at LA and I look at Chicago.
Speaker 8: You know, I do think it's important that the Democratic
Speaker 8: governors stand and stand and speak with one voice, that
Speaker 8: you know what we need from the federal government in
Speaker 8: terms of a reliable partner.
Speaker 6: How much are you concerned about some of the images
Speaker 6: that we're seeing with the National Guard going into places
Speaker 6: like Chicago and San Francisco and Portland and really raising
Speaker 6: a question about whether it's going to be the States
Speaker 6: versus the federal government.
Speaker 8: Right Dally will be speaking again. Remember a year or
Speaker 8: two ago you was talking about civil war. Will you go, oh, Ray,
Speaker 8: come on, it's a little bit unnerving if you see
Speaker 8: those images right now. I talked to General Yvon, the
Speaker 8: head of the Connecticut Guard. We're very careful, I said,
Speaker 8: any inquiries from the federal government, I don't know. We
Speaker 8: just sent our guard to Djibouti, not to Chicago. I
Speaker 8: feel pretty good about.
Speaker 1: That going forward.
Speaker 6: What is your plan to try to keep businesses here
Speaker 6: and attract them to the Northeast given the exodus that
Speaker 6: has gone to Florida to other places have lower taxes.
Speaker 8: We are speeding up our rail system from say Greenwich
Speaker 8: to you know, Grand Central. That'll be ten to fifteen
Speaker 8: minutes faster. Working really hard to make sure, you know,
Speaker 8: you can get the workforce you need. And again, we
Speaker 8: haven't raised taxes in seven years, we've balanced the budget.
Speaker 8: I think that type of stability is pretty helpful.
Speaker 1: Do you think that taxes need to come down?
Speaker 6: Do you think that that's an instrumental part of trying
Speaker 6: to keep attracting businesses and compete with other states.
Speaker 8: Well, I'm a governor, so I can't over promise. Everybody
Speaker 8: running against me is always say they're going to eliminate
Speaker 8: the income tax in the state of Connecticut. I think
Speaker 8: what's more important to the folks I talk to is
Speaker 8: what's this state going to look like one year and
Speaker 8: five years from now? Do I want to be here?
Speaker 8: Because I'm making a five year bet. We haven't raised
Speaker 8: taxes at all. I've cut them for middle class folks.
Speaker 8: I think that's a good balance going forward.
Speaker 1: What is your number one hope for the state?
Speaker 6: What is your number one sort of policy platform that
Speaker 6: you're hoping to get forward over the next one to
Speaker 6: five years.
Speaker 5: I need housing.
Speaker 8: You know, for the first time in a long time,
Speaker 8: a lot of young people are moving out here. Like
Speaker 8: the lifestyle. We're pretty good as a suburban lifestyle. Rebuilding
Speaker 8: our cities. You know, these are our cities. We're fifty
Speaker 8: percent bigger fifty years ago. Now they're growing again where
Speaker 8: young people want to be. As I talk to the
Speaker 8: businesses and say, is this a place where young people,
Speaker 8: young employees want to be, I'm trying to say, yes.
Speaker 6: How much are you participating in the reindustrialization of the
Speaker 6: United States? And that's been a big platform that we've
Speaker 6: seen overall. Is that something that you're trying to attract
Speaker 6: to the state as well.
Speaker 8: Yeah, I'd like to think of us as a silicon
Speaker 8: valley of manufacturing. We do a lot of complicated stuff
Speaker 8: like submarines and jet engines and choppers, and they are
Speaker 8: growing fast. That's the sort of the heart of our
Speaker 8: economy in the northern part of the state. But you
Speaker 8: know that's changing too. It's getting increasingly energy intensive. So
Speaker 8: I'm going to bring down the price of electricity as
Speaker 8: best I can and make sure they have the workforce.
Speaker 8: It's all sort of an AI computerized workforce.
Speaker 2: Now, stay with us multiple impex. Savanna's coming up off
Speaker 2: to this. Let's talk about the government shut down. I'm
Speaker 2: pleased to say that joining us now is the Senator
Speaker 2: from Louisiana, the Republican Chafre of the Senate Health, Education,
Speaker 2: Labor and Pensions Committee, Senator Bill Cassidy joins us now
Speaker 2: for more. Senator, welcome to the program, Sir, welcome back.
Speaker 2: I should say there is a take on Wall Street
Speaker 2: that we've seen this movie before, that we get to
Speaker 2: the inevitable pressure points and the government reopens. You've done
Speaker 2: this for a long time, You've had this seat for
Speaker 2: ten years, Senator. Does it feel different this time?
Speaker 3: It feels a.
Speaker 9: Little bit different because there's a complete breakdown of trust.
Speaker 9: Chuck Schumer, obviously you get ended tomorrow if he wants
Speaker 9: to end it, but he doesn't trust the president that
Speaker 9: said Chuck Schumer could end this tomorrow. I'm hoping that
Speaker 9: he does, and I'm hoping it doesn't take a lot
Speaker 9: of pain from the American people in order to get
Speaker 9: him to do so.
Speaker 4: Is there a breakthrough the fact that in Good Morning, Senator,
Speaker 4: that it does seem like both sides, at least at
Speaker 4: this point want to talk about talking as political put it,
Speaker 4: that the President is coming out and saying maybe there
Speaker 4: could be a compromise comes to healthcare.
Speaker 3: Yeah, absolutely.
Speaker 9: You know, it's better to jawge all than the world wars.
Speaker 9: Winston Churchill once said, so let's go ahead and start
Speaker 9: talking that said, Republicans have suggested a seven week extension
Speaker 9: of the current budget to to allow dialogue to continue,
Speaker 9: and that's commonly done. As Chuck Schumer points out, it
Speaker 9: happened thirteen times under Joe Biden, and so that seven
Speaker 9: weeks kept the government open, allowed us to continue to negotiate.
Speaker 9: So I think there's something else that Schumer's thinking about.
Speaker 9: Not quite sure what it is, but I'd rather be
Speaker 9: talking than kind of sitting in our own corners.
Speaker 4: What is going to happen though at the end of
Speaker 4: the year when we get this premium.
Speaker 9: Hike, Well, first, we don't know what premium mic is
Speaker 9: going to occur, let's just say that. But secondly, we've
Speaker 9: got to address the fact that the Affordable Care Act
Speaker 9: has become the Unaffordable Care Act, in which it takes
Speaker 9: huge subsidies in order to continue to make those policies
Speaker 9: affordable to Americans.
Speaker 3: That's wrong. We've got to.
Speaker 9: Roll that back to a point where it's still affordable
Speaker 9: to Americans, but it doesn't require these huge subsidies. This
Speaker 9: is not sustainable. But by the way, it's not just
Speaker 9: me saying this. The Washington Post had an editorial about
Speaker 9: how the Affordable Care Act is no longer affordable. So
Speaker 9: I think now might be the time. What can we
Speaker 9: do to help the American public lower health care costs
Speaker 9: in a way which is not just for the exchanges
Speaker 9: but for those in the kind of private markets as well.
Speaker 4: Could you get a compromise like that before the end
Speaker 4: of the year.
Speaker 9: I sure hope so, But first you got to reopen
Speaker 9: the government.
Speaker 3: We're actually asking for you.
Speaker 5: How can we do this? How can we do that?
Speaker 9: The government's shut down, so we can't get some of
Speaker 9: the information. The seven week extension of the current budget
Speaker 9: allows that to happen, and so I'd ask Schumer to
Speaker 9: reopen the government in the meantime. I'm certainly committed to
Speaker 9: how we get lower healthcare costs for all Americans. That's
Speaker 9: what I've been doing my whole life, and so let's
Speaker 9: get on it.
Speaker 1: Senator.
Speaker 4: When it comes to moderate Democrats, do you see any
Speaker 4: willingness some of them to join the three that we
Speaker 4: have seen sign up and vote for a clear stopgap
Speaker 4: funding measure, And that's.
Speaker 9: Spoken to any of them personally, you'd like to think
Speaker 9: so one more time, We've just asked for a seven
Speaker 9: week extension of the current budget, which was done thirteen
Speaker 9: times under Joe Biden, and so so I would hope
Speaker 9: they would because this is inflicting pain on the American people.
Speaker 9: But we could be talking with each other without a shutdown.
Speaker 9: I think this is a political response by Schumer to
Speaker 9: pressure from his left wing, but it should be pressure
Speaker 9: from the American people keeping the government open while we
Speaker 9: continue to work the lower healthcare cost.
Speaker 2: A Senator of the White House is still operational, and
Speaker 2: if they're making moves, I wanted to squeeze this in
Speaker 2: because I know you're a busy man. This morning, Trilogy
Speaker 2: Metals in early training this morning is hired by more
Speaker 2: than two hundred percent. The announcement that the US will
Speaker 2: be taking a ten percent stake in the Canadian Minerals
Speaker 2: Explorer leading to a big rally on the stock. Senator,
Speaker 2: can you give me your opinion, your perspective on what
Speaker 2: you think of the party moving towards something that smells
Speaker 2: a little bit like central planning.
Speaker 9: Yeah, I'm a little bit personally concerned about state owned
Speaker 9: enterprises because it's a slippery slope. At first, you're a
Speaker 9: passive partner. It's one thing to have a position in
Speaker 9: the stock market or it's another thing to have a time.
Speaker 1: Exit after TARP.
Speaker 9: There are some positions that the federal government had that
Speaker 9: was a time exit. That's okay, But having a long
Speaker 9: term interest, I think there'll be a future Democratic president
Speaker 9: who will be tempted to go a little bit further.
Speaker 9: We should definitely get a return on our investment if
Speaker 9: we end up bailing somebody out. Absolutely, But on the
Speaker 9: other hand, I'm a little bit nervous about taking positions
Speaker 9: that go beyond a time exit.
Speaker 4: Well, what do you make of the fact that the
Speaker 4: Republican Party, not the Democratic Party, is the party doing
Speaker 4: this and supporting state capitalism.
Speaker 9: Yeah, so I think the president. I can't speak for
Speaker 9: the president, and the Republican Party is a diverse organization.
Speaker 9: I'll say that as well. I'm just speaking for Bilcassidy,
Speaker 9: and I am a conservative, and I am a little
Speaker 9: bit nervous when government ends up owning the means of production.
Speaker 9: When that happens, sometimes the government ends up dictating to
Speaker 9: the means of production what to do, for example, keep
Speaker 9: employment up for political reasons. I'm nervous about that. Maybe
Speaker 9: the President's got a great plan. It's one thing to
Speaker 9: be a passive partner to own stock, we have a
Speaker 9: time dexit, etc. Another to be active. Now, I will
Speaker 9: say the president's specifically saying will not take a position
Speaker 9: on the board. That's my understanding. That's a good thing,
Speaker 9: that's a really good thing. But still I'll put all
Speaker 9: those caveats out there.
Speaker 4: As a senator, does it concern you that the executive
Speaker 4: branch is going one way and not consulting you and
Speaker 4: your colleagues.
Speaker 9: Ultimately, we have to recognize that executive orders have been
Speaker 9: put there, and the presidents can do kind of what
Speaker 9: they want with an executive order. But obviously the problem
Speaker 9: with that is that when a new president comes in,
Speaker 9: she or he so far just he can immediately reverse
Speaker 9: all those So you want legislation that will actually put
Speaker 9: in place for certainty for business and for labor, that
Speaker 9: plan for the economy that goes forward. So everybody understands
Speaker 9: executive orders are powerful, but they're temporary. I would suggest
Speaker 9: that we're going to have long term certainty. We need
Speaker 9: Congress to William.
Speaker 2: Senator before you go, can Tiger's football get back on track?
Speaker 5: Okay?
Speaker 2: Who can Tiger's football get back on track?
Speaker 5: Oh?
Speaker 9: My gosh, I certainly hope, So I certainly hope. So
Speaker 9: we have a good game that's coming up with South Carolina,
Speaker 9: so I'm always hopeful for the Tigers.
Speaker 3: Go Tigers.
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