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Speaker 1: You're listening to the Bloomberg Sound on podcast Catch us

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Speaker 1: Live weekdays at one Eastern on Bloomberg dot com, the

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Speaker 1: iHeartRadio app and the Bloomberg Business app, or listening on

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Speaker 1: demand wherever you get your podcasts.

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Speaker 2: Well, again, the big story in DC this week was,

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Speaker 2: of course the dut limit. You saw that meeting with

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Speaker 2: Biden and McCarthy as well as some of the other

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Speaker 2: big congressional leaders on Tuesday, and then you've kind of

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Speaker 2: seen it go into staff talks. They've had those types

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Speaker 2: of conversations, and they were going to have a meeting

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Speaker 2: today that.

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Speaker 3: Got bumped into next week.

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Speaker 2: But McCarthy has basically told everyone not to worry that

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Speaker 2: progress is still being made. Maddie, what's the vibe that

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Speaker 2: you're getting up there in New York with the markets

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Speaker 2: right now? How is anyone panicking? Yeah, Well, in fact,

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Speaker 2: this meeting isn't happening.

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Speaker 4: It's so funny, Emily, just because there's so much consensus.

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Speaker 4: It feels like, which is so rare in Washington, that

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Speaker 4: this absolutely needs to get done and if it doesn't

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Speaker 4: it would be a disaster. But markets, they're not sweating

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Speaker 4: this at all. They're really ruthlessly moving forward here. And

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Speaker 4: that's despite some of those comments we got from Treasury

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Speaker 4: Secretary Janet Yellen. As you know, she spoke with our

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Speaker 4: very own Amory Hordern at the G seven summit. Here's

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Speaker 4: what she had to say about the debt ceiling.

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Speaker 5: There is no satisfactory solution for the United States, a

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Speaker 5: solution that will be good for the economy and financial markets,

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Speaker 5: other than Congress acting to raise the debt ceiling. There

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Speaker 5: are potential different paths that could be taken if it

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Speaker 5: doesn't happen, but there is not a single thing that

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Speaker 5: can be done that will save the United States from

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Speaker 5: considerable economic and financial damage.

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Speaker 6: But this planned was outlined back in twenty eleven, and

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Speaker 6: you were there at the FMC meeting about it, and

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Speaker 6: it said that Treasury principles and securities would be paid.

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Speaker 6: Is this something that at least for contingent plan has

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Speaker 6: been discussed with the president?

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Speaker 5: So my understanding I was at the FED in twenty

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Speaker 5: eleven is that this plan was never presented to the

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Speaker 5: President and never approved, and would you present it now?

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Speaker 5: We are working full time to work with Congress to

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Speaker 5: raise the debt ceiling. That's where our focus is we

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Speaker 5: know that the only good outcome is one in which

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Speaker 5: Congress act acts as it has many times, almost eighty

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Speaker 5: times since nineteen sixty, to raise the debt ceiling.

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Speaker 2: That was Secretary Jenny Yellen speaking exclusively to Bloomberg's and

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Speaker 2: Marie Hordern in Japan today. Well to discuss a little

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Speaker 2: bit more about what we are seeing with the dubt limit.

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Speaker 2: We want to welcome to the show Congressman Ben Klein.

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Speaker 2: He is a Republican from Virginia and honestly one of

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Speaker 2: my favorite members to talk to because he's a member

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Speaker 2: of both the bipartisan problem Solver's Caucus and the very

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Speaker 2: conservative House Freedom Caucus, and so he kind of has

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Speaker 2: an excellent perspective on all sides. Congressman, welcome to the show.

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Speaker 7: Great to be with you. You know, we all want

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Speaker 7: to get an agreement to raise the dead ceiling, keep

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Speaker 7: the markets calm. But the Democrats are dealing with a

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Speaker 7: Republican House and the dead ceiling increase we passed reflect

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Speaker 7: Republican priorities and getting our fiscal house under control. It's

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Speaker 7: something that Democrats are struggling.

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Speaker 8: To deal with.

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Speaker 7: This idea of Republican unity across the House and Senate,

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Speaker 7: from conservatives to moderates. We are all backing this bill

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Speaker 7: and backing our speaker in these negotiations. That's why he's

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Speaker 7: not going to negotiate with himself. The Democrats and the

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Speaker 7: White House need to come up with a proposal of

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Speaker 7: their own and pass it through the Senate if they

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Speaker 7: don't like ours.

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Speaker 2: And so I want to just get your reaction to

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Speaker 2: what Secretary Yellen said. I mean, you kind of mentioned

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Speaker 2: it there, but would you agree and would your colleagues

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Speaker 2: agree that the only good outcome here is to raise

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Speaker 2: the debt ceiling? Or is there some thinking among Republicans

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Speaker 2: that you know, Biden is the president, he tends to

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Speaker 2: get blamed for whatever goes down in DC. Are there

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Speaker 2: a couple of Republicans who say, hey, we can kind

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Speaker 2: of kick Biden down a notch if.

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Speaker 3: We go for a default.

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Speaker 7: No, there's no one who is thinking that we should

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Speaker 7: go into default as a strategy.

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Speaker 8: We have passed a bill that would.

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Speaker 7: Extend the debt ceiling. In All Republicans save one or two,

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Speaker 7: voted for it. So we are united behind this plan

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Speaker 7: to raise the debt ceiling. It extends it one year

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Speaker 7: we understand from back conversations through staff that the White

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Speaker 7: House is saying they won't agree to anything that doesn't

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Speaker 7: extend the debt ceiling through the next election. That would

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Speaker 7: be over three trillion dollars, the largest debt ceiling increase ever.

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Speaker 7: And that's a ridiculous request. You don't have anything on

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Speaker 7: the table. So, you know, unless he wants to start

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Speaker 7: adding more things to the bill that passed out of

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Speaker 7: the House, he needs to deal realistically with what can

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Speaker 7: get through the Senate and the bill that's passed the

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Speaker 7: House with two hundred and eighteen votes.

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Speaker 4: Congressman, I know that you're in the room a lot

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Speaker 4: for these high level negotiations and conversations. I wonder if

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Speaker 4: you can explain to me how the fact that the

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Speaker 4: delay here on this meeting gets President Biden and Speaker

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Speaker 4: McCarthy out.

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Speaker 3: Of the room.

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Speaker 4: How is that helpful because it's being viewed and discussed

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Speaker 4: as being helpful in terms of the impact on negotiations.

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Speaker 7: Well, I'm not going to be undiplomatic, but i will

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Speaker 7: say that I'm pretty sure that the President is stating

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Speaker 7: or restating what his handlers and staffers are telling him

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Speaker 7: to say. So the idea that he's not in the

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Speaker 7: room but his staff are in the negotiations. I don't

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Speaker 7: really see much of a difference. The staff is negotiating,

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Speaker 7: just because the principals aren't sitting at the table across

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Speaker 7: from each other, and Biden's not reading from Q cards

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Speaker 7: what his staff tells him to say doesn't really make

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Speaker 7: a difference. I think we are making progress, and I'm

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Speaker 7: optimistic that we will get a debt ceiling deal in

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Speaker 7: the near future.

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Speaker 2: Let's dig into that progress a little bit, because we're

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Speaker 2: starting to hear some potential details around these debt limit talks.

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Speaker 2: It seems like there is growing consensus on both sides

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Speaker 2: to have things like permitting reform included and on clawback

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Speaker 2: on COVID funding. Congressman, is that going to be enough

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Speaker 2: for House Republicans? Could they support a debt limit if

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Speaker 2: only those two items are in there?

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Speaker 7: Well, the Conservatives are very comfortable with the bill that

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Speaker 7: passed the House, but that is the starting point for conservatives.

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Speaker 7: What we will not do, and what McCarthy should not do,

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Speaker 7: is negotiate against himself. So if the White House comes

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Speaker 7: in and says we have nothing that passes the Senate,

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Speaker 7: we have no starting point other than a clean debt ceiling,

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Speaker 7: and you have to negotiate down from your position, even

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Speaker 7: though we haven't had a single vote on our plan

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Speaker 7: because a clean that ceiling wouldn't pass the Senate. Well,

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Speaker 7: that's you know, as a lawyer, I was taught in

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Speaker 7: law school, don't negotiate against yourself. So it would be

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Speaker 7: foolish for McCarthy to start coming down off of the

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Speaker 7: bill that passed the House, endangering his support from Conservatives

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Speaker 7: when we're all united and it's Democrats who actually have

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Speaker 7: to start producing and saying we can get this passed

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Speaker 7: through the Senate, and we agree to these parts of

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Speaker 7: your plan. So so it's a good start that the

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Speaker 7: White House is saying, we like permitting reform, we like

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Speaker 7: calawing back COVID money, we like work requirements for welfare.

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Speaker 7: But there's also spending caps, and there's also energy independence

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Speaker 7: other parts of the bill that we're going to need

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Speaker 7: to see in this final agreement.

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Speaker 4: Would you say that we're in when it comes to

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Speaker 4: getting disagreement done? Are we in there fourth? Are we

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Speaker 4: in the eighth?

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Speaker 7: I would I would say we're you know, in that

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Speaker 7: seventh inning stretch okay, where the music is playing and

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Speaker 7: the T shirt cannon guys out there, and and we're

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Speaker 7: all saying, there's more to be done in this game.

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Speaker 7: But it's the possibility that there are This could go

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Speaker 7: into extra innings as well, So but we were optimistic

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Speaker 7: we're going to pull out a win.

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Speaker 2: Congressman, the Congressional Budget Office, nonpartisan, I know it's a

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Speaker 2: factor all of us on the hill fall pretty closely

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Speaker 2: reported this morning that the budget deficit is going to

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Speaker 2: jump to one point five trillion this year. That's a

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Speaker 2: worse outlook than the same agency had in February. Does

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Speaker 2: that new number change the conversation at all around the

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Speaker 2: dut limit or Republicans going to push for more cuts in.

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Speaker 3: Light of that?

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Speaker 7: Absolutely, it does emphasize the need to have spending limits

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Speaker 7: as part of any deal on the debt ceiling. And

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Speaker 7: the President says, you're not touching the Inflation Reduction Act, Well,

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Speaker 7: that was one of the major causes of inflation. All

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Speaker 7: of this extra spending that the President has pushed through.

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Speaker 7: It's raised inflation to the point where you're dealing with

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Speaker 7: interest rates on the rise, in banks having gaps in

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Speaker 7: their holdings, and the poorly run banks in crisis, and

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Speaker 7: so all of this spending has a cascading effect over everything,

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Speaker 7: especially at the gas pump and at the grocery working families.

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Speaker 7: So we are going to have to see raining in

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Speaker 7: of spending. And that's one of the reasons why we're

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Speaker 7: pushing so hard for a balanced budget proposal to come

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Speaker 7: out and appropriators to start producing spending bills that actually

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Speaker 7: reflect the spending cuts in this Death Deal twenty two

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Speaker 7: f y twenty two levels holding spending level for veterans

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Speaker 7: and not touching, not cutting veterans or defense or Social

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Speaker 7: Security or Medicare, but going after non defense discretionary and

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Speaker 7: making sure we find the savings there.

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Speaker 4: I do want to quickly talk to you about former

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Speaker 4: President Trump's comments in the town hall this week proposing

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Speaker 4: that perhaps a default should happen. I wonder what position

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Speaker 4: that viewpoint puts you and your colleagues in.

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Speaker 7: Well, from what I understand from the conversation, he was

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Speaker 7: advocating for significant cuts in spending. And I think that

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Speaker 7: Republicans are united in the need to rein in wasteful,

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Speaker 7: woke and weaponized spending in and throughout across our government.

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Speaker 7: You know, they created a, for example, a Federal Insurance

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Speaker 7: Office under Dodd Frank and years ago to kind of

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Speaker 7: oversee the state regulation and insurance policies. But it's been

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Speaker 7: to enforce a Green New Deal agenda. So now they're

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Speaker 7: surveying all of the insurers across the country to see

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Speaker 7: how green they are. Well, that's not the purpose of

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Speaker 7: the agency. So I put in a bill to eliminate it,

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Speaker 7: dismantle it. Those are the kind of changes that we

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Speaker 7: need to restore power to the states and to the

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Speaker 7: people for the tenth Amendment and scale back the woken

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Speaker 7: weaponized government at the federal level.

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Speaker 2: The congressman, I also want to jump to immigration because

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Speaker 2: Republicans passed a major border security and immigration package yesterday.

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Speaker 3: And I wanted to kind of get a sense.

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Speaker 2: I mean, there's been a lot of reporting that now

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Speaker 2: that this has passed the House.

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Speaker 3: The bill is dead on arrival in the Senate. Biden's

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Speaker 3: not going to pick it up.

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Speaker 2: But there are certainly some real immigration issues that we're

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Speaker 2: dealing with right now. I'm thinking, you come from a

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Speaker 2: rural district, there's a lot of agriculture, and of course

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Speaker 2: workers are needed. There are there any areas of agreement

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Speaker 2: between Republicans and Democrats, or something could actually get done.

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Speaker 7: Absolutely. You know, immigration is an issue that folks in

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Speaker 7: the House and in the Senate, Republicans and Democrats, have

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Speaker 7: all been working on for years and years and years

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Speaker 7: and tried and failed a lot of different times. But

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Speaker 7: if you know the big question, you get asked, how

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Speaker 7: do you eat an elephant? One bite at a time

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Speaker 7: is the answer. So let's take small bites. Let's see

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Speaker 7: if we can't secure the border, Let's see if we

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Speaker 7: can't provide CPB with new technology, additional resources. Yes, finish

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Speaker 7: the wall, but let's also talk about reforming our asylum

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Speaker 7: process to make sure that the people who are truly

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Speaker 7: victims of these wars, persecuted for their religion, for their race,

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Speaker 7: for their ethnicity, are the ones who are allowed in,

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Speaker 7: and making sure that our work programs for legal workers

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Speaker 7: actually are run efficiently and effectively and people can depend

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Speaker 7: on them, because the more those work, the more you

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Speaker 7: disincentivize the people who are trying to come in illegally

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Speaker 7: the need to come in illegally. So let's create a

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Speaker 7: legal process that works, and then and after securing the border,

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Speaker 7: hopefully that will reduce the illegal immigration that we're seeing.

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Speaker 4: We got one potential solution offered up from Democratic Congressman

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Speaker 4: from Texas, Henry Quaar on Title forty two. Yesterday he

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Speaker 4: spoke with our Joe Matthew on the sound on here's

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Speaker 4: what you have to say.

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Speaker 9: But the bottom line is you've got to have some

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Speaker 9: sort of repook cushions at the border, because otherwise you

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Speaker 9: are going to see just to speed up at the border.

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Speaker 9: And I think that that's the powerful images that we're

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Speaker 9: seeing people just streaming across the border.

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Speaker 4: So when you hear about that and the bipartisan bill

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Speaker 4: from colleagues to sort of bring Title forty two back,

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Speaker 4: do you support that.

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Speaker 7: I do think we need to restore Title forty two.

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Speaker 7: The bill that we passed in the House would essentially

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Speaker 7: reinstate that idea that if you come in and claim

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Speaker 7: asylum while you while you wait for your hearing, you

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Speaker 7: can either wait in Mexico or you can be held

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Speaker 7: in the United States, but you're not going to be

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Speaker 7: released into the United States, effectively paroled and given the

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Speaker 7: opportunity to vanish into the interior of the country. That's

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Speaker 7: just not going to happen. If you come in illegally

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Speaker 7: with the intent to avoid our asylum. Essentially be one

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Speaker 7: of the gotaways, the one point five million gotaways who

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Speaker 7: is coming. Then you're not going to be eligible not

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Speaker 7: only for asylum, but you're not going to be eligible

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Speaker 7: to return at all. So there do have to be consequences.

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Speaker 7: I agree with my friend from Texas, the Democrat congress

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Speaker 7: from Quaar, that there do have to be consequences for

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Speaker 7: coming in illegally.

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Speaker 2: Well, Congressman Ben Klein, thank you so much for joining

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Speaker 2: us today sound On, Maddie.

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Speaker 3: I know that you and I are going to be

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Speaker 3: sticking around for a little bit.

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Speaker 2: We've got an upcoming discussion on immigration with Bloomberg Government

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Speaker 2: White House reporter Courtney Rosen. Make sure that you stick

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Speaker 2: around for that and we will start chatting on that

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Speaker 2: topic in just a minute.

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Speaker 1: Listening to the Bloomberg Sound On podcast catch us live

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Speaker 1: weekdays at one Eastern on Bloomberg dot Com, the iHeartRadio app,

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Speaker 1: and the Bloomberg Business App, or listening on demand wherever

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Speaker 1: you get your podcasts.

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Speaker 3: This is Bloomberg Sound On.

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Speaker 2: I'm Emily Wilkins and for Joe Matthew along with Maddy Mills.

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Speaker 2: I'm excited to have joined today and we're going to

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Speaker 2: be chatting in just.

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Speaker 3: A minute with Courtney Rosen.

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Speaker 2: She is the Bloomberg White House reporter and she has

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Speaker 2: really been covering very closely the issue of immigration.

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Speaker 3: So much has happened this week.

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Speaker 2: Title forty two, it's one of the COVID era restrictions

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Speaker 2: at the border was lifted. We've seen a lot of

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Speaker 2: movement at the border already. We've seen the White House

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Speaker 2: act trying to send down additional troops to prepare for

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Speaker 2: an influx of migrants. We have seen Republicans past their

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Speaker 2: border package and seeing the White House has not done enough.

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Speaker 2: And we're seeing outside groups enter the fray as well,

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Speaker 2: with various lawsuits and concerns about what this is going

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Speaker 2: to mean for immigrants who are crossing the border. Courtney,

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Speaker 2: I know that you've been following this all very very closely,

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Speaker 2: and so I wanted to see if we could just

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Speaker 2: start off with you giving us kind of a recap

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Speaker 2: where things stand now that Title forty two, those COVID

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Speaker 2: air restrictions have been lifted.

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Speaker 10: I am thanks for having me. Title forty two has

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Speaker 10: been in place for about three years now. It was

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Speaker 10: an old public health law that President Donald Trump, I'll say,

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Speaker 10: dust it off at the beginning of the pandemic as

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Speaker 10: a way to keep migrants out of the country on

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Speaker 10: the grounds that the coronavirus was spreading and then that

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Speaker 10: could increase the spread of disease. We know that's not

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Speaker 10: the case now a couple of years later. But this

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Speaker 10: week or last night, I should say, at eleven fifty nine,

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Speaker 10: that restriction lifted. And so there's a lot of misinformation

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Speaker 10: out there with migrants that are coming from all over

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Speaker 10: the world, particularly Latin America, but all over the world

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Speaker 10: to the Southwest border about what that means for how

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Speaker 10: easy it is to enter the US. And the Biden

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Speaker 10: administration is trying to counter that, and so all sorts

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Speaker 10: of different places in Washington and around the country are

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Speaker 10: weighing in this week, and we're watching to see how

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Speaker 10: it's going to move forward given that the restrictions are gone,

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Speaker 10: and there's so many migrants that are seeking to take

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Speaker 10: shelter in the US.

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Speaker 4: So what do we need to know about the new

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Speaker 4: asylum rules and how that's being kind of communicated in

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Speaker 4: a quick and efficient way.

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Speaker 10: I was at a press conference yesterday with Homeland Security

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Speaker 10: Secretary in Mayorkis. He is the point person on the border,

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Speaker 10: and his message for migrants was do not come. They're

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Speaker 10: trying to convey that through a number of ways, but

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Speaker 10: one of them is through this asylum policy. It's making

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Speaker 10: it very hard for people who come to the border

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Speaker 10: to apply for asylum and feeble to stay in the US.

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Speaker 10: They're trying to steer migrants to other pathways that they've

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Speaker 10: set up that have them avoid the journey to the border.

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Speaker 10: Those pathways are extremely limited, but the asylum policy is

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Speaker 10: at the border itself is also making it difficult if

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Speaker 10: migrants want to enter.

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Speaker 2: Well, Courtney, thank you so much for bringing us up

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Speaker 2: to speed on what's been going on with the border

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Speaker 2: and the White House. That was Courtney Rosen. She's Bloomberg

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Speaker 2: Government's White House reporter. We now want to turn to

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Speaker 2: our all Star panel with Bloomberg Politics contributors Genie she

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Speaker 2: and Zano and Rick Davis. We just, I think just

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Speaker 2: start off with where we're at with the border right now.

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Speaker 3: Rick, from what you.

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Speaker 2: Are seeing and from how the Biden administration is responding,

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Speaker 2: is this going to be a giant problem for Biden?

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Speaker 2: This influx of migrants that is expected at the border.

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Speaker 11: Now, Uh, no question. I mean it is a disaster

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Speaker 11: in both the Republican and the Democratic Party. The Democrats

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Speaker 11: can't defend the border policy that allows you know, half

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Speaker 11: a million migrants this month to come through in illegal fashion.

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Speaker 11: And the Biden administration's policies as it relates to legal

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Speaker 11: migration have been, you know, basically turned on its head

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Speaker 11: because he was using Title forty two is his principal

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Speaker 11: way of maintaining control the border, and now that's gone

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Speaker 11: and to be replaced by Title eight that basically allows

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Speaker 11: for immigrants to apply for asylum, has overwhelmed the system

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Speaker 11: without the kind of impact, without the kind of build

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Speaker 11: up that the Biden administration probably should have done, even

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Speaker 11: with the additional federal troops that are on the border.

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Speaker 11: So it is an outright disaster for this administration.

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Speaker 4: Jeanie, come on in here from where you sit. How

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Speaker 4: much trouble is the Biden administration and over this this

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Speaker 4: immigration issue.

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Speaker 12: It's an enormous problem. It has been decades. As you

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Speaker 12: go back decades, you know, their line has long been

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Speaker 12: similar to what we hear. By the way, on the

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Speaker 12: debt ceiling, Congress needs to act and as it pertains

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Speaker 12: to the border, we know that that is the case.

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Speaker 12: We need Congress to act on the border because the

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Speaker 12: executive the ability of the President to issue executive orders

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Speaker 12: and to act simply from the White House is pretty narrow.

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Speaker 12: So we've seen him take some steps, and we heard

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Speaker 12: here on sound on the other day Representative Quaar and others,

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Speaker 12: but Quaar in particular, who's been a critic of the

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Speaker 12: administration saying they're doing the right thing at this point.

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Speaker 12: The only problem is it's coming at the eleventh hour

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Speaker 12: as we're facing you know, as Rick just mentioned, y know,

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Speaker 12: ten thirteen thousand migrants going over the border a day,

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Speaker 12: and so we understand from people at the border last

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Speaker 12: night wasn't quite as bad as they thought it would be.

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Speaker 12: But even from Joe Biden, you're hearing him say this

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Speaker 12: is going to be pretty much of a disaster for

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Speaker 12: a while to come. So, yes, his hands are tied.

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Speaker 12: It doesn't look good. It raises all kinds of questions

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Speaker 12: for the administration about whether people in the United States

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Speaker 12: can feel secure, and we've seen from the polls they

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Speaker 12: simply do not.

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Speaker 2: Well, that's one thing the Biden administration is going to

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Speaker 2: have to deal with the other, of course, is the

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Speaker 2: death limit. And actually yesterday I briefly got to speak

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Speaker 2: me in a couple other reporters with speaker Kevin McCarthy

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Speaker 2: asking him what happened why this meeting that was supposed

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Speaker 2: to be today if the White House got moved?

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Speaker 3: Take a listen, it's not cancer.

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Speaker 13: We all agree.

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Speaker 14: We thought the staff should meet again and we'll meet

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Speaker 14: next week. We thought it'd be more productive when next week, yeah,

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Speaker 14: I will maybe I give a positive son or making

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Speaker 14: it for new No, no, we just all agreed thought

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Speaker 14: it'd be more productive if staff met again before we all.

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Speaker 13: Go to meeting and be taking this as well.

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Speaker 14: Just what it is that staff I don't have staff,

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Speaker 14: have staff comedian, No, we all agreed to it.

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Speaker 8: Thinks are falling apart or something. No, no, don't take.

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Speaker 15: It from that perspective.

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Speaker 2: That is like quality DC scrums sound like we're all

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Speaker 2: just talking over each other trying to get a question in.

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Speaker 2: Jeanie mcarthy, of course, is trying to play this down.

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Speaker 3: Is no big deal? Give us your read.

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Speaker 2: Should we actually be concerned that this meeting isn't happening

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Speaker 2: and that staff or meeting instead.

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Speaker 12: Yeah, I don't think so. I mean, you know, let's

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Speaker 12: be realistic. The staffs are the one who are going

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Speaker 12: to have to do the hard work here, and so

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Speaker 12: you know, we should give them praise and thanks that

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Speaker 12: they're doing this. You know, I think that it is

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Speaker 12: not a horrible sign. I think, you know, it was

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Speaker 12: good to hear that they are meeting again, the staff

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Speaker 12: and then their principles will meet next week. But the

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Speaker 12: reality is is that this, as you mentioned earlier, Emily,

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Speaker 12: when you were talking to the Congressman, the CBO report

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Speaker 12: to me is the troubling part of this because what

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Speaker 12: we are hearing from the CBO speaking about the damage

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Speaker 12: that's going to be done regardless of whether we get

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Speaker 12: an agreement today, We're already seeing economic damage. And so

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Speaker 12: this is I think the really troubling part. But I

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Speaker 12: hope that the Congressman and McCarthy and everyone else is

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Speaker 12: right when they say we will get this thing done.

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Speaker 12: But the problem again is the eleventh hour is too late.

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Speaker 12: It's going to damage the economy regardless.

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Speaker 4: Well, to your point, Genie, if you listen to Congressman Banklin,

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Speaker 4: who we had on we are at least in the

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Speaker 4: seventh inning and starting to hear the music on this issue.

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Speaker 4: So hopefully that's a good sign for folks. But Rick,

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Speaker 4: come on in here for me. What can we expect

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Speaker 4: not just in the meeting with advisors today, but also

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Speaker 4: heading into next week.

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Speaker 13: Yeah.

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Speaker 11: I think it's a good thing that you had the

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Speaker 11: congressman on who could give us an inside perspective on

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Speaker 11: how he feels about the discussions. Of course, you know

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Speaker 11: they're being driven by the Republicans and Caucus, so having

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Speaker 11: them opine about this is really valuable. And and I

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Speaker 11: take it on face value, seventh inning is a really

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Speaker 11: good thing. Very few teams come back after the seventh

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Speaker 11: inning to pull an upset, and the upset here would

442
00:23:23,680 --> 00:23:27,479
Speaker 11: be letting the limit expire. So, Mike, my guess is

443
00:23:27,520 --> 00:23:29,680
Speaker 11: that the staff is making progress. I mean, I think

444
00:23:29,920 --> 00:23:33,560
Speaker 11: the Speaker did a smart thing from his negotiating position

445
00:23:33,600 --> 00:23:36,639
Speaker 11: where he threw everything in the kitchen sink into that

446
00:23:36,720 --> 00:23:39,280
Speaker 11: bill that he got approved by his caucus and in

447
00:23:39,359 --> 00:23:42,520
Speaker 11: the in the House of Representatives. So he's got a

448
00:23:42,560 --> 00:23:45,240
Speaker 11: negotiating position where you can just basically take off, Hey

449
00:23:45,240 --> 00:23:47,280
Speaker 11: i've got to have this permitting reform. Hey I've got

450
00:23:47,320 --> 00:23:49,840
Speaker 11: to have this clawback on COVID, whether they get to

451
00:23:49,880 --> 00:23:51,879
Speaker 11: a cap on spending, you know, whether they get to

452
00:23:52,240 --> 00:23:54,160
Speaker 11: some of these other items that are on that list.

453
00:23:55,080 --> 00:23:56,960
Speaker 11: It's just going to be a matter of Okay, now

454
00:23:56,960 --> 00:23:59,000
Speaker 11: we were done, right, I mean, like we've we've got

455
00:23:59,040 --> 00:24:02,159
Speaker 11: the universe around, did we know exactly what the negotiating

456
00:24:02,200 --> 00:24:05,680
Speaker 11: points are. It'll get sticky towards the end, but there's

457
00:24:05,680 --> 00:24:08,520
Speaker 11: no reason why this can't be wrapped up in the

458
00:24:08,560 --> 00:24:10,920
Speaker 11: near term, like you know, by the end the next week,

459
00:24:11,280 --> 00:24:15,119
Speaker 11: whether it passes the Congress by then, I'm not sure

460
00:24:15,119 --> 00:24:17,120
Speaker 11: that they could get it done that quick, only because

461
00:24:17,160 --> 00:24:19,280
Speaker 11: of the procedures. But once they have a deal, they

462
00:24:19,280 --> 00:24:21,520
Speaker 11: have a deal, and I think that colms the markets.

463
00:24:21,920 --> 00:24:25,120
Speaker 2: I mean, Maddie, this is always the thing, right, It's like, well,

464
00:24:25,160 --> 00:24:26,719
Speaker 2: we need to get a deal, and then once they

465
00:24:26,760 --> 00:24:28,200
Speaker 2: have a deal, you need to get it on paper,

466
00:24:28,200 --> 00:24:30,359
Speaker 2: and then you need to make it through one chamber,

467
00:24:30,359 --> 00:24:32,879
Speaker 2: get it through the other chamber, all of these process votes.

468
00:24:33,240 --> 00:24:35,160
Speaker 2: I mean, the fact of the matter is that even

469
00:24:35,200 --> 00:24:37,720
Speaker 2: if we had an agreement next week, we are gonna

470
00:24:37,760 --> 00:24:40,160
Speaker 2: come real close to that June first stead line.

471
00:24:40,280 --> 00:24:40,480
Speaker 8: Yeah.

472
00:24:40,520 --> 00:24:43,560
Speaker 4: I mean, Emily, you know this better than anyone You've

473
00:24:43,600 --> 00:24:47,400
Speaker 4: been covering all of the iterations of this in Washington

474
00:24:47,440 --> 00:24:50,560
Speaker 4: for us for a while now. And I mean that

475
00:24:50,680 --> 00:24:53,639
Speaker 4: June X day is getting closer and closer by the second,

476
00:24:53,920 --> 00:24:56,800
Speaker 4: and we're still having meeting delays yep.

477
00:24:56,920 --> 00:25:00,320
Speaker 2: And I mean, I think, though Genie's point, Congressman clients point,

478
00:25:00,520 --> 00:25:02,600
Speaker 2: the fact that you are seeing staff move on this,

479
00:25:03,160 --> 00:25:05,320
Speaker 2: I think the folks who kind of know Washington and

480
00:25:05,359 --> 00:25:08,600
Speaker 2: know how these negotiations go down, Yeah, they're feeling They're

481
00:25:08,600 --> 00:25:10,600
Speaker 2: feeling okay about the fact that staff is talking.

482
00:25:11,760 --> 00:25:15,119
Speaker 1: You're listening to The Bloomberg Sound on podcast. Catch the

483
00:25:15,160 --> 00:25:19,040
Speaker 1: program live weekdays at one Eastern on Bloomberg Radio, the

484
00:25:19,119 --> 00:25:22,440
Speaker 1: tune in alf, Bloomberg dot Com, and the Bloomberg Business app.

485
00:25:22,560 --> 00:25:25,440
Speaker 1: You can also listen live on Amazon Alexa from our

486
00:25:25,440 --> 00:25:29,960
Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven thirty.

487
00:25:32,160 --> 00:25:35,239
Speaker 2: This is Emily Wilkins and Mattie Mills. We are in

488
00:25:35,359 --> 00:25:37,760
Speaker 2: for Joe Matthew, but only for a little bit. Joe's

489
00:25:37,760 --> 00:25:39,680
Speaker 2: actually going to come join us in just a few

490
00:25:39,680 --> 00:25:43,280
Speaker 2: minutes here along with Kaylee Lions. But before they do, Mattie,

491
00:25:43,400 --> 00:25:45,480
Speaker 2: we got to talk a little bit about something that

492
00:25:45,600 --> 00:25:46,720
Speaker 2: started happening this week.

493
00:25:46,720 --> 00:25:48,240
Speaker 3: It's going to go into next week.

494
00:25:48,720 --> 00:25:51,800
Speaker 2: It is national next week rather is National Police Week,

495
00:25:52,160 --> 00:25:55,360
Speaker 2: and Congress and DC are really gearing up for this.

496
00:25:56,000 --> 00:25:59,879
Speaker 2: Obviously a lot of the twenty twenty elections really focused

497
00:25:59,880 --> 00:26:02,919
Speaker 2: on issues of crime of policing. I mean, obviously in

498
00:26:02,960 --> 00:26:06,600
Speaker 2: twenty twenty, the whole the slogan defund the police was

499
00:26:06,640 --> 00:26:09,840
Speaker 2: pretty big. He didn't here quite as much in a

500
00:26:09,960 --> 00:26:11,720
Speaker 2: twenty twenty two though, you didn't.

501
00:26:11,800 --> 00:26:14,639
Speaker 4: But I really anticipate this becoming another one of those

502
00:26:14,720 --> 00:26:18,399
Speaker 4: key issues as we head into the thick of campaign season.

503
00:26:18,480 --> 00:26:21,920
Speaker 4: So let's bring in our expert panelists to get their

504
00:26:21,960 --> 00:26:24,960
Speaker 4: take on how this discussion is going to continue to evolve.

505
00:26:24,960 --> 00:26:28,520
Speaker 4: We've got Genie Shinzano and Rick Davis here with us. Genie,

506
00:26:28,560 --> 00:26:30,520
Speaker 4: I want to just start off with you. Something that

507
00:26:30,560 --> 00:26:33,159
Speaker 4: I think about a lot is Biden's State of the

508
00:26:33,240 --> 00:26:36,840
Speaker 4: Union address where he brought in the parents of Tyree Nichols,

509
00:26:36,880 --> 00:26:41,159
Speaker 4: who had just been killed, and he in his speech

510
00:26:41,200 --> 00:26:44,320
Speaker 4: talked about unifying the nation and you know, we all

511
00:26:44,400 --> 00:26:46,760
Speaker 4: want to protect our kids, but he also was very

512
00:26:46,840 --> 00:26:50,639
Speaker 4: clear on his support of the police and got you know,

513
00:26:50,720 --> 00:26:53,360
Speaker 4: a full room standing ovation when he talked about that

514
00:26:53,840 --> 00:26:57,679
Speaker 4: kind of walking that tightrope. There does that same tightrope

515
00:26:57,680 --> 00:27:00,119
Speaker 4: walking work outside the halls of com.

516
00:27:01,200 --> 00:27:03,440
Speaker 12: Yeah, I mean I think about that a lot too.

517
00:27:03,520 --> 00:27:05,720
Speaker 12: It because he has been very clear all along to

518
00:27:05,800 --> 00:27:09,000
Speaker 12: push back on the more progressive wing of his party

519
00:27:09,000 --> 00:27:12,520
Speaker 12: and to push back clearly against the defund message, and

520
00:27:12,560 --> 00:27:15,520
Speaker 12: that came through in that speech you just referenced. This

521
00:27:15,680 --> 00:27:18,560
Speaker 12: is an issue for Democrats, and I'm one of those

522
00:27:18,600 --> 00:27:21,520
Speaker 12: people who thinks it's one of the most important issues

523
00:27:21,520 --> 00:27:24,680
Speaker 12: they face besides the economy. I live in New York

524
00:27:24,720 --> 00:27:27,560
Speaker 12: and I will tell you the reason that Republicans picked

525
00:27:27,600 --> 00:27:30,879
Speaker 12: up so many seats in the midterm, and the reason

526
00:27:31,000 --> 00:27:34,080
Speaker 12: maybe they have the House right now, is because they

527
00:27:34,119 --> 00:27:38,000
Speaker 12: lost Democratic seats in the suburbs here, Long Island, Westchester

528
00:27:38,080 --> 00:27:40,880
Speaker 12: and elsewhere. Number one issue on the minds of many

529
00:27:40,920 --> 00:27:45,080
Speaker 12: New Yorkers crime and they don't feel like Democrats are

530
00:27:45,160 --> 00:27:47,879
Speaker 12: responding to it. So this is a real challenge. And

531
00:27:47,880 --> 00:27:49,640
Speaker 12: I would just add one more thing if I can.

532
00:27:49,960 --> 00:27:52,000
Speaker 12: I know, Maddie, you and I both in New York.

533
00:27:52,720 --> 00:27:57,080
Speaker 12: Today we have seen the arrest of this Daniel Penny,

534
00:27:57,160 --> 00:28:01,400
Speaker 12: this former marine who killed this whole homeless Gentleman Jordan

535
00:28:01,520 --> 00:28:05,280
Speaker 12: Neely on the subway train. This is raising enormous questions

536
00:28:05,320 --> 00:28:08,280
Speaker 12: about crime and safety. Many people hearkening back to the

537
00:28:08,400 --> 00:28:11,600
Speaker 12: nineteen seventies and eighties in New York City where crime

538
00:28:11,760 --> 00:28:13,880
Speaker 12: is you know, they feel, even though the numbers don't

539
00:28:13,880 --> 00:28:18,199
Speaker 12: support it, running rampants. So people are feeling insecure, and

540
00:28:18,240 --> 00:28:21,280
Speaker 12: it's hurting Democrats in the suburbs. It's hurting them with

541
00:28:21,520 --> 00:28:24,639
Speaker 12: white women. So it's something that President, it's something that

542
00:28:24,720 --> 00:28:27,720
Speaker 12: Democrats really have to get write their message on. And

543
00:28:27,760 --> 00:28:30,840
Speaker 12: the defund message was completely wrong for them, and so

544
00:28:30,920 --> 00:28:32,400
Speaker 12: that's why we're seeing that pushback.

545
00:28:32,880 --> 00:28:35,359
Speaker 2: You know, can you make a really excellent point about

546
00:28:35,520 --> 00:28:38,760
Speaker 2: New York that, honestly for the House battleground in twenty

547
00:28:38,800 --> 00:28:40,880
Speaker 2: twenty four, the House could be won or lost in

548
00:28:40,960 --> 00:28:43,520
Speaker 2: New York. But Republicans of course too have to be

549
00:28:43,600 --> 00:28:46,640
Speaker 2: staying on top of this topic. And Speaker Kevin McCarthy

550
00:28:46,920 --> 00:28:49,320
Speaker 2: no stranger to talking about his support for the police.

551
00:28:49,720 --> 00:28:53,720
Speaker 2: He does this little annual bike ride every year through Washington, DC.

552
00:28:54,400 --> 00:28:56,320
Speaker 2: You can see that the third most powerful person in

553
00:28:56,360 --> 00:28:58,600
Speaker 2: America on a bike didn't wear a helmet this year.

554
00:28:58,880 --> 00:29:01,640
Speaker 2: You should have done that, mister speak, but he did

555
00:29:01,640 --> 00:29:04,200
Speaker 2: his annual ride to Back the Blue in Washington, d C.

556
00:29:04,600 --> 00:29:06,480
Speaker 2: And while he was there, this is what he had

557
00:29:06,480 --> 00:29:06,840
Speaker 2: to say.

558
00:29:07,760 --> 00:29:11,720
Speaker 14: This country has to turn away from this movement of

559
00:29:11,800 --> 00:29:17,960
Speaker 14: defunding of the police. We honor what you do, We

560
00:29:18,000 --> 00:29:20,560
Speaker 14: honor the job that you provide to us, We honor

561
00:29:20,560 --> 00:29:23,480
Speaker 14: the safety that you provide to us. And more importantly,

562
00:29:23,520 --> 00:29:26,440
Speaker 14: we want the country to know we don't believe in defunding.

563
00:29:26,840 --> 00:29:29,560
Speaker 14: We believe in supporting and that's what we want to.

564
00:29:29,520 --> 00:29:30,280
Speaker 1: Show with today.

565
00:29:31,160 --> 00:29:34,640
Speaker 2: Rick, let's bring you into the conversation here. How important

566
00:29:34,680 --> 00:29:37,280
Speaker 2: is it for Republicans to show voters that they're strongly

567
00:29:37,360 --> 00:29:39,920
Speaker 2: pro law enforcement or do they already kind of have

568
00:29:40,000 --> 00:29:42,400
Speaker 2: it locked down the perception that they are the party.

569
00:29:42,120 --> 00:29:43,040
Speaker 3: Of law and order.

570
00:29:43,360 --> 00:29:45,640
Speaker 11: You know, I don't think it's a lockdown, but as

571
00:29:45,760 --> 00:29:48,520
Speaker 11: Juny said that, the Democrats spent first two years of

572
00:29:48,560 --> 00:29:52,040
Speaker 11: Biden administration on defense, trying to tamp down people within

573
00:29:52,080 --> 00:29:54,280
Speaker 11: the left side of their party saying, oh, you know,

574
00:29:54,360 --> 00:29:57,040
Speaker 11: defund the police and sort of echoing some of the

575
00:29:58,040 --> 00:30:02,440
Speaker 11: protest messages from the before Biden was elected. So that

576
00:30:02,560 --> 00:30:04,560
Speaker 11: was kind of a hangover. I think the Democrats have

577
00:30:04,560 --> 00:30:08,680
Speaker 11: gotten over that hangover, and they can certainly pivot to

578
00:30:08,760 --> 00:30:12,040
Speaker 11: become a much more masculine party around around crime. But

579
00:30:12,080 --> 00:30:14,360
Speaker 11: they've seeded that argument for the last two years to

580
00:30:14,400 --> 00:30:16,840
Speaker 11: the Republicans, and we've made good use of it. In

581
00:30:16,880 --> 00:30:18,960
Speaker 11: other words, you know, these suburban seats in New York,

582
00:30:18,960 --> 00:30:23,000
Speaker 11: for instance, that Genie was talking about absolutely were materially

583
00:30:23,040 --> 00:30:26,200
Speaker 11: affected for Republicans on the issue of crime. Crime was

584
00:30:26,240 --> 00:30:30,160
Speaker 11: the number two issue in almost every battleground district in

585
00:30:30,200 --> 00:30:32,680
Speaker 11: the ballot in twenty two and I wouldn't expect it

586
00:30:32,720 --> 00:30:35,640
Speaker 11: to be much less than that. I would say it

587
00:30:35,680 --> 00:30:38,440
Speaker 11: also is an underlying issue of competency, and the two

588
00:30:38,440 --> 00:30:42,320
Speaker 11: issues we've talked about today, immigration and crime are kind

589
00:30:42,320 --> 00:30:46,320
Speaker 11: of a competency problem for Joe Biden. I mean, he

590
00:30:46,560 --> 00:30:48,680
Speaker 11: just doesn't look like he's got his hands around these

591
00:30:48,680 --> 00:30:51,800
Speaker 11: things as our number one cop, you know, in America.

592
00:30:52,000 --> 00:30:55,920
Speaker 11: And I think that competency issue showed its ugly head

593
00:30:56,000 --> 00:31:00,840
Speaker 11: after the botched Afghanistani withdrawal and now might be having

594
00:31:00,880 --> 00:31:03,560
Speaker 11: a perfect sort of confluence of those two issues of

595
00:31:04,400 --> 00:31:06,520
Speaker 11: immigration and crime hitting him in this cycle.

596
00:31:06,800 --> 00:31:09,840
Speaker 4: Yeah, well, that is something that we know. Former President

597
00:31:09,880 --> 00:31:12,840
Speaker 4: Trump brought up this week in the town hall Genie

598
00:31:12,880 --> 00:31:15,520
Speaker 4: in our final minute ish with you here, to what

599
00:31:15,640 --> 00:31:18,959
Speaker 4: extent do you think that Trump has a leg up

600
00:31:18,960 --> 00:31:22,040
Speaker 4: on the Biden administration heading into or Biden himself rather

601
00:31:22,120 --> 00:31:25,560
Speaker 4: heading into this upcoming election specifically on this issue.

602
00:31:25,920 --> 00:31:28,880
Speaker 12: You know, I think Republicans have you know, Ben have

603
00:31:29,280 --> 00:31:31,000
Speaker 12: the advantage if you look at the polls on the

604
00:31:31,040 --> 00:31:34,400
Speaker 12: issue of crime. That said, I have long been a proponent.

605
00:31:34,600 --> 00:31:37,240
Speaker 12: There is nothing that's going to get Joe Biden back

606
00:31:37,280 --> 00:31:40,560
Speaker 12: in that White House than running against Donald Trump because

607
00:31:40,600 --> 00:31:42,640
Speaker 12: that is sort of his you know, at least that's

608
00:31:42,640 --> 00:31:44,120
Speaker 12: what Democrats believe at this point.

609
00:31:44,160 --> 00:31:47,280
Speaker 4: But still, Jennie, after that town hall, you still feel

610
00:31:47,280 --> 00:31:47,640
Speaker 4: that way.

611
00:31:47,920 --> 00:31:51,760
Speaker 12: Oh, absolutely, the more crazy Republicans look, the better off

612
00:31:51,760 --> 00:31:54,600
Speaker 12: for Joe Biden and Donald Trump. Just you know, it

613
00:31:54,760 --> 00:31:58,240
Speaker 12: screams it. So that's what at least what Democrats believe

614
00:31:58,360 --> 00:32:00,720
Speaker 12: we have to see. But they believe that can beat

615
00:32:00,840 --> 00:32:03,680
Speaker 12: Donald Trump. They're not sure they can beat other Republicans

616
00:32:03,680 --> 00:32:05,560
Speaker 12: given his age.

617
00:32:06,360 --> 00:32:09,640
Speaker 2: And it'll be interesting too, I mean the presidential as

618
00:32:09,680 --> 00:32:12,000
Speaker 2: well as the fact that you know, both parties are

619
00:32:12,040 --> 00:32:15,400
Speaker 2: really trying to continue their message on policing. You're going

620
00:32:15,480 --> 00:32:18,720
Speaker 2: to see Republicans next week actually introduce.

621
00:32:18,360 --> 00:32:19,479
Speaker 3: A handful of bills.

622
00:32:19,480 --> 00:32:21,880
Speaker 2: One that's going to commemorate the five hundred and fifty

623
00:32:21,880 --> 00:32:24,040
Speaker 2: six police officers that were killed in the line of

624
00:32:24,120 --> 00:32:25,479
Speaker 2: duty in twenty twenty two.

625
00:32:25,600 --> 00:32:27,560
Speaker 3: We expect that to be pretty bipartisan.

626
00:32:27,840 --> 00:32:30,080
Speaker 2: And then there will also be a couple other wonky

627
00:32:30,120 --> 00:32:33,160
Speaker 2: ones as well, one that will make assaulting.

628
00:32:32,680 --> 00:32:34,880
Speaker 3: A police officer a deportable offense.

629
00:32:34,760 --> 00:32:36,560
Speaker 2: And then there will be another that will allow law

630
00:32:36,640 --> 00:32:39,600
Speaker 2: enforcement officials to buy back handguns. I'm interested to see

631
00:32:39,600 --> 00:32:41,760
Speaker 2: where that goes because that bill is being introduced by

632
00:32:41,760 --> 00:32:44,520
Speaker 2: a Republican this time, but in the last Congress it

633
00:32:44,560 --> 00:32:47,600
Speaker 2: was actually introduced by a Democrat, and so I'm curious

634
00:32:47,680 --> 00:32:50,440
Speaker 2: to see how much bipartisan support that gets and if

635
00:32:50,440 --> 00:32:53,200
Speaker 2: that actually might be something that could go somewhere in

636
00:32:53,240 --> 00:32:53,640
Speaker 2: the Senate.

637
00:32:53,960 --> 00:32:56,680
Speaker 4: Yeah. You know, it's such an interesting point, Emily, and

638
00:32:56,760 --> 00:32:59,440
Speaker 4: it's an issue that feels like it continues to be

639
00:32:59,560 --> 00:33:05,560
Speaker 4: very heavy. We divided in Congress. Unlike the extreme bipartisan agreement,

640
00:33:05,560 --> 00:33:08,000
Speaker 4: it seems that we have to figure out this debt

641
00:33:08,040 --> 00:33:10,200
Speaker 4: ceiling thing. Whether or not there's agreement on how to

642
00:33:10,280 --> 00:33:13,000
Speaker 4: do that is the big question on all of our minds.

643
00:33:13,000 --> 00:33:15,400
Speaker 4: But as our guest said earlier, maybe we're getting a

644
00:33:15,400 --> 00:33:17,840
Speaker 4: little bit of consensus building around that. We're going to

645
00:33:17,880 --> 00:33:20,760
Speaker 4: continue the conversation here between myself, Madison Mills and New

646
00:33:20,840 --> 00:33:24,160
Speaker 4: York and Emily Wilkins in DC. This is Sound On.

647
00:33:25,320 --> 00:33:28,840
Speaker 1: You're listening to the Bloomberg Sound On podcast. Catch us

648
00:33:28,880 --> 00:33:32,040
Speaker 1: live weekdays at one Eastern on Bloomberg dot com, the

649
00:33:32,120 --> 00:33:35,200
Speaker 1: iHeartRadio app and the Bloomberg Business app, or listening on

650
00:33:35,280 --> 00:33:37,280
Speaker 1: demand wherever you get your podcasts.

651
00:33:38,280 --> 00:33:41,000
Speaker 2: Well, we've got Joe Matthew and Kaylee Lymes joining me

652
00:33:41,280 --> 00:33:45,080
Speaker 2: in the Bloomberg ninety nine to one newsroom right now. Guys,

653
00:33:45,680 --> 00:33:48,200
Speaker 2: you know looking forward to both of you hosting Bills

654
00:33:48,200 --> 00:33:49,640
Speaker 2: of Power today and I know you guys are going

655
00:33:49,720 --> 00:33:52,480
Speaker 2: to take over the reins now for the next hour. Joe,

656
00:33:52,680 --> 00:33:53,000
Speaker 2: what are you?

657
00:33:53,000 --> 00:33:54,160
Speaker 3: What are you looking forward to here?

658
00:33:54,200 --> 00:33:55,720
Speaker 15: Well, I just I don't know. We're kind of taken

659
00:33:55,760 --> 00:33:58,120
Speaker 15: by the fact that we're not seeing these emergency photos

660
00:33:58,120 --> 00:34:00,440
Speaker 15: from the border that everybody expected in DA Yes is

661
00:34:00,440 --> 00:34:03,520
Speaker 15: saying that they actually didn't see a meaningful increase overnight,

662
00:34:03,560 --> 00:34:05,600
Speaker 15: which is exactly the opposite of what we were told

663
00:34:05,600 --> 00:34:06,040
Speaker 15: would happen.

664
00:34:06,280 --> 00:34:09,320
Speaker 16: Yeah, so maybe it wasn't a title wave of migrants

665
00:34:09,360 --> 00:34:12,600
Speaker 16: coming over the border the second that Title forty two lifted, Joe.

666
00:34:12,600 --> 00:34:14,160
Speaker 16: But we have to consider that when we say the

667
00:34:14,200 --> 00:34:16,760
Speaker 16: numbers haven't changed, that doesn't mean the numbers still aren't large.

668
00:34:16,840 --> 00:34:19,440
Speaker 16: This is still thousands of people that are being processed

669
00:34:19,440 --> 00:34:22,440
Speaker 16: every day. Perhaps the good news, though, is that it hasn't,

670
00:34:22,760 --> 00:34:26,280
Speaker 16: you know, exponentially increased in the last twenty four hours

671
00:34:26,480 --> 00:34:27,800
Speaker 16: now that the titles have changed.

672
00:34:27,880 --> 00:34:29,640
Speaker 15: I think ten thousand was the number that we had

673
00:34:29,640 --> 00:34:32,520
Speaker 15: for the two days prior, and the government is telling

674
00:34:32,600 --> 00:34:35,280
Speaker 15: us that that's exactly where the numbers have stayed here.

675
00:34:35,560 --> 00:34:38,160
Speaker 15: So emily, when you start talking about this on Capitol Hill,

676
00:34:38,200 --> 00:34:41,920
Speaker 15: what I mean, my goodness, Republicans wanted to see chaos

677
00:34:41,960 --> 00:34:44,279
Speaker 15: breakouts so they could hang this around the administration's neck.

678
00:34:44,440 --> 00:34:47,560
Speaker 2: They absolutely did, because immigration is something that Republicans one

679
00:34:47,600 --> 00:34:48,799
Speaker 2: hundred percent planned to run on.

680
00:34:48,840 --> 00:34:49,839
Speaker 3: And this is across the board.

681
00:34:50,040 --> 00:34:52,160
Speaker 2: This is Congressman Ben Klein, who were just talking to

682
00:34:52,280 --> 00:34:55,439
Speaker 2: last hour. These are the Republicans in New York, which

683
00:34:55,480 --> 00:34:57,440
Speaker 2: is going to be such an important battleground for the

684
00:34:57,440 --> 00:35:00,920
Speaker 2: House in twenty twenty four. They're really banking all immigration.

685
00:35:01,560 --> 00:35:04,480
Speaker 2: And I mean, I'm you know all of them, I'm

686
00:35:04,480 --> 00:35:06,960
Speaker 2: sure are sympathetic to those coming to the border, but

687
00:35:07,120 --> 00:35:09,880
Speaker 2: you know, not seeing this chaos means that they can't.

688
00:35:09,920 --> 00:35:13,280
Speaker 2: Really it lessens the impact of them blaming the Biden

689
00:35:13,280 --> 00:35:17,759
Speaker 2: administration and Homeland Security Secretary Alejandro Mayorkoss for what you're

690
00:35:17,800 --> 00:35:18,960
Speaker 2: seeing at this point.

691
00:35:19,200 --> 00:35:20,880
Speaker 4: Yeah, and from where I am in New York, we

692
00:35:21,000 --> 00:35:24,000
Speaker 4: just continue to hear from our own mayor even Eric

693
00:35:24,040 --> 00:35:28,080
Speaker 4: Adams just asking for, you know, any assistance on this

694
00:35:28,239 --> 00:35:32,120
Speaker 4: increase in individuals that we're anticipating. And to your broader point,

695
00:35:32,280 --> 00:35:34,759
Speaker 4: Kaylee and Joe, I really wonder what we're going to

696
00:35:34,840 --> 00:35:37,120
Speaker 4: see over the weekend in terms of those numbers, If

697
00:35:37,160 --> 00:35:40,239
Speaker 4: perhaps there was like an initial decrease that's then going

698
00:35:40,320 --> 00:35:42,960
Speaker 4: to come up again a little bit more. I've been

699
00:35:43,000 --> 00:35:46,560
Speaker 4: looking into this new report that shows that the number

700
00:35:46,600 --> 00:35:49,880
Speaker 4: of displaced people in twenty twenty two increased by twenty

701
00:35:50,040 --> 00:35:52,680
Speaker 4: percent to over seventy one million people. So it's a

702
00:35:52,680 --> 00:35:53,360
Speaker 4: big issue.

703
00:35:54,120 --> 00:35:57,080
Speaker 15: A lot more ahead with the former ambassador of Mexico.

704
00:35:57,360 --> 00:36:00,640
Speaker 15: Our top guest for Hour two, Maddie and Emily many

705
00:36:00,680 --> 00:36:01,919
Speaker 15: thanks forgetting as this far.

706
00:36:02,120 --> 00:36:02,400
Speaker 13: Kaylee.

707
00:36:02,560 --> 00:36:06,279
Speaker 15: Let's fasten the chin straps. Our two of Sound On.

708
00:36:06,400 --> 00:36:10,840
Speaker 1: It starts right now. You're listening to the Bloomberg Sound

709
00:36:10,880 --> 00:36:14,440
Speaker 1: On podcast. Catch us live weekdays at one Eastern on

710
00:36:14,560 --> 00:36:18,239
Speaker 1: Bloomberg dot Com, the iHeartRadio app, and the Bloomberg Business App,

711
00:36:18,480 --> 00:36:21,000
Speaker 1: or listen on demand wherever you get your podcasts.

712
00:36:21,560 --> 00:36:24,279
Speaker 15: Welcome to our two of Bloomberg Sound On. I'm Joe,

713
00:36:24,320 --> 00:36:28,560
Speaker 15: Matthew and Washington Yes with Katie Lines. As we try

714
00:36:28,600 --> 00:36:30,440
Speaker 15: to seize the day here with what we know, at

715
00:36:30,520 --> 00:36:33,040
Speaker 15: least particularly from the border. Title forty two lifting on

716
00:36:33,080 --> 00:36:36,800
Speaker 15: the southern border, from the expiration of that pandemic era restriction,

717
00:36:36,920 --> 00:36:39,400
Speaker 15: and groups of migrants have been seen trying to cross

718
00:36:39,440 --> 00:36:41,520
Speaker 15: the border. That's not new, of course, we were seeing

719
00:36:41,520 --> 00:36:44,600
Speaker 15: that before Title forty two lifted and Matamoros. It's across

720
00:36:44,640 --> 00:36:48,000
Speaker 15: the Rio Grand from Brownsville, Texas. People were climbing over

721
00:36:48,080 --> 00:36:51,480
Speaker 15: barbed wire the barrier set up there as US Service

722
00:36:51,520 --> 00:36:55,200
Speaker 15: members calmly watched from just inches away. This is the

723
00:36:55,239 --> 00:36:58,680
Speaker 15: sound of an encounter in which an American can be

724
00:36:58,719 --> 00:37:00,440
Speaker 15: heard telling them in Spanish to please go to an

725
00:37:00,480 --> 00:37:03,640
Speaker 15: official point of entry and that their location is dangerous,

726
00:37:03,680 --> 00:37:07,640
Speaker 15: not a good place to cross. This comes after a

727
00:37:07,719 --> 00:37:12,400
Speaker 15: Twitter message from the Secretary of Homeland Security, Alejandro majorcis.

728
00:37:11,880 --> 00:37:16,680
Speaker 17: We are ready to process and swiftly remove people without

729
00:37:16,800 --> 00:37:20,960
Speaker 17: a legal basis to remain in the US. Do not

730
00:37:21,080 --> 00:37:25,560
Speaker 17: believe the lies of smugglers. People who do not use

731
00:37:25,719 --> 00:37:33,840
Speaker 17: available legal pathways to enter the US now face tougher consequences.

732
00:37:33,040 --> 00:37:35,000
Speaker 15: Now, Kaylee, I don't know if that message is hitting

733
00:37:35,000 --> 00:37:38,319
Speaker 15: home or maybe people or just you know, not ready

734
00:37:38,400 --> 00:37:40,680
Speaker 15: to turn on a dime just because Title forty two

735
00:37:40,760 --> 00:37:44,600
Speaker 15: restrictions are rising. But Henry Quaar, the congressman from Texas,

736
00:37:44,600 --> 00:37:46,759
Speaker 15: told us yesterday one hundred and fifty thousand migrants were

737
00:37:46,760 --> 00:37:49,040
Speaker 15: ready across the border. We're certainly not seeing numbers like that.

738
00:37:49,480 --> 00:37:51,759
Speaker 16: Yeah, And I mean that still may be true. There

739
00:37:51,800 --> 00:37:54,600
Speaker 16: still may be people in waiting to make the crossing,

740
00:37:54,760 --> 00:37:56,440
Speaker 16: just not doing it all in once, and kind of

741
00:37:56,480 --> 00:37:59,560
Speaker 16: a tidal wave that I think some of us perhaps

742
00:37:59,640 --> 00:38:01,759
Speaker 16: thought we could see images of something like that, of

743
00:38:01,800 --> 00:38:04,520
Speaker 16: just floods of people now attempting to cross the border.

744
00:38:04,520 --> 00:38:06,440
Speaker 16: In the aftermath of this, perhaps it's going to be

745
00:38:06,520 --> 00:38:09,560
Speaker 16: more of a trickle or stream than a floodshoe. But really,

746
00:38:09,800 --> 00:38:13,080
Speaker 16: I mean, this is just the first fourteen hours of this,

747
00:38:13,120 --> 00:38:14,840
Speaker 16: So we'll have to see how things develop over the

748
00:38:14,840 --> 00:38:15,359
Speaker 16: coming days.

749
00:38:15,440 --> 00:38:19,480
Speaker 15: Yeah, we heard from Blas Nunez Nieto, he's Assistant Secretary

750
00:38:19,520 --> 00:38:22,000
Speaker 15: for Border and Immigration Policy at DHS.

751
00:38:22,360 --> 00:38:23,360
Speaker 1: Listen to how he put it.

752
00:38:23,400 --> 00:38:26,319
Speaker 18: Overnight, we saw similar patterns to what we have seen

753
00:38:26,360 --> 00:38:30,279
Speaker 18: over the past several days. We continue to encounter high

754
00:38:30,400 --> 00:38:33,040
Speaker 18: levels of non citizens at the border, but we did

755
00:38:33,080 --> 00:38:37,880
Speaker 18: not see a substantial increase overnight or an influx at midnight.

756
00:38:38,400 --> 00:38:38,960
Speaker 1: How about that.

757
00:38:39,440 --> 00:38:41,760
Speaker 15: So it didn't happen the way a lot of people predicted.

758
00:38:41,840 --> 00:38:44,840
Speaker 15: And to your point, again, it could still happen over time,

759
00:38:45,280 --> 00:38:47,279
Speaker 15: but you wonder if something's actually going right here.

760
00:38:47,840 --> 00:38:50,560
Speaker 16: Yeah, I mean, we have heard repeatedly from the administration,

761
00:38:50,600 --> 00:38:52,919
Speaker 16: from Secretary of Majorcus and others that they have had

762
00:38:53,120 --> 00:38:56,360
Speaker 16: two years to prepare for this moment, and that they

763
00:38:56,440 --> 00:39:00,279
Speaker 16: were prepared. They had an infrastructure in place, they were

764
00:39:00,360 --> 00:39:03,160
Speaker 16: ready to lean on Title eight and other things. Although

765
00:39:03,160 --> 00:39:04,800
Speaker 16: they have had some difficulty in the courts in the

766
00:39:04,880 --> 00:39:06,719
Speaker 16: last twenty four hours with some of what they were

767
00:39:06,880 --> 00:39:10,400
Speaker 16: attempting to implement, Joe, but by and large, maybe it

768
00:39:10,440 --> 00:39:14,120
Speaker 16: does suggest that they weren't unprepared.

769
00:39:13,880 --> 00:39:14,480
Speaker 8: For the moment.

770
00:39:14,880 --> 00:39:17,840
Speaker 15: Great opportunity to spend some time with Chris Landau, the

771
00:39:17,840 --> 00:39:21,960
Speaker 15: former US Ambassador to Mexico. He was in that position

772
00:39:22,000 --> 00:39:24,840
Speaker 15: from twenty nineteen to twenty twenty one, so very recent

773
00:39:24,920 --> 00:39:27,839
Speaker 15: experience in dealing with this very issue. And Ambassador, we

774
00:39:28,080 --> 00:39:30,320
Speaker 15: want to welcome you to Bloomberg Radio. It's a pleasure

775
00:39:30,320 --> 00:39:31,840
Speaker 15: to have you here. I wonder what you make of

776
00:39:31,880 --> 00:39:34,280
Speaker 15: this initial take that we did not see a flood

777
00:39:34,320 --> 00:39:35,440
Speaker 15: of migrants at midnight.

778
00:39:37,040 --> 00:39:38,360
Speaker 8: First of all, let me thank you for having me

779
00:39:38,400 --> 00:39:41,520
Speaker 8: on the show. I'm not that surprised, because the truth is,

780
00:39:41,719 --> 00:39:45,200
Speaker 8: we've been having a flood now for a long time.

781
00:39:45,560 --> 00:39:48,200
Speaker 8: I mean, even though Title forty two has been in place.

782
00:39:48,239 --> 00:39:51,640
Speaker 8: This is all a game of expectations and changing the

783
00:39:51,640 --> 00:39:55,920
Speaker 8: baseline record numbers have been coming in over the last

784
00:39:56,280 --> 00:39:58,960
Speaker 8: several weeks, and so saying like, wow, there's not a

785
00:39:59,040 --> 00:40:02,680
Speaker 8: huge flood today. Maybe things are actually looking up. That

786
00:40:03,080 --> 00:40:06,680
Speaker 8: is just kind of smoke and mirrors. You know, nobody

787
00:40:06,719 --> 00:40:10,760
Speaker 8: can deny the fact that we've had more illegal migration

788
00:40:10,880 --> 00:40:13,160
Speaker 8: across our southern border in the past two years than

789
00:40:13,200 --> 00:40:16,759
Speaker 8: ever before in our history. And I don't think the administration,

790
00:40:16,880 --> 00:40:21,120
Speaker 8: notwithstanding these stern words that Secretary of majorca is reported

791
00:40:21,120 --> 00:40:24,360
Speaker 8: to have his actions absolutely do not match those words,

792
00:40:24,360 --> 00:40:26,440
Speaker 8: and that's why the people are coming, because they know

793
00:40:26,840 --> 00:40:29,240
Speaker 8: that those are just empty words, they're political rhetoric.

794
00:40:30,120 --> 00:40:33,160
Speaker 16: Well but Ambassador, they're not just coming because of what

795
00:40:33,560 --> 00:40:35,680
Speaker 16: the situation is on the US side of things. There

796
00:40:35,680 --> 00:40:39,280
Speaker 16: also is a reason why they are leaving the countries

797
00:40:39,280 --> 00:40:42,840
Speaker 16: from which they come. So there's kind of two sides

798
00:40:42,840 --> 00:40:46,839
Speaker 16: to this coin, right, which one is the US addressing

799
00:40:47,160 --> 00:40:48,000
Speaker 16: least effectively?

800
00:40:49,200 --> 00:40:51,719
Speaker 8: Well, look, I mean there always are. There are many

801
00:40:51,760 --> 00:40:53,680
Speaker 8: countries in the world where the standard of living is

802
00:40:53,719 --> 00:40:55,880
Speaker 8: below that in the United States. Right, These countries have

803
00:40:55,960 --> 00:40:59,000
Speaker 8: been much poorer than we have throughout their history. It's

804
00:40:59,040 --> 00:41:02,799
Speaker 8: not like they're suddenly as a hurricane or a repressive

805
00:41:02,800 --> 00:41:04,600
Speaker 8: government that showed up in one of these countries that

806
00:41:05,400 --> 00:41:07,400
Speaker 8: is causing people to flee. It's just the reason that

807
00:41:07,440 --> 00:41:09,440
Speaker 8: a lot of people over centuries have wanted to come

808
00:41:09,440 --> 00:41:13,160
Speaker 8: here looking for a better life for themselves and their families.

809
00:41:13,320 --> 00:41:16,319
Speaker 8: But we have certain laws that govern who gets in

810
00:41:16,360 --> 00:41:19,640
Speaker 8: and under what circumstances, And the problem is this administration

811
00:41:19,880 --> 00:41:22,680
Speaker 8: has not been enforcing the law since day one. This

812
00:41:22,760 --> 00:41:25,520
Speaker 8: is a relatively new phenomenon that they came in and

813
00:41:25,560 --> 00:41:28,400
Speaker 8: they said, you know something, we are categorically not going

814
00:41:28,440 --> 00:41:31,080
Speaker 8: to be deporting people from the interior. We're going to

815
00:41:31,080 --> 00:41:34,000
Speaker 8: be allowing all these people in. There will always be

816
00:41:34,400 --> 00:41:37,520
Speaker 8: pressure from other countries of people wanting to come, but

817
00:41:37,640 --> 00:41:40,800
Speaker 8: the reason they make the journey and put their lives

818
00:41:40,840 --> 00:41:44,000
Speaker 8: in peril and their fortunes is because they actually think

819
00:41:44,000 --> 00:41:45,959
Speaker 8: they're going to get in and be able to stay here.

820
00:41:46,400 --> 00:41:49,040
Speaker 8: And that is something that does come from our side.

821
00:41:49,520 --> 00:41:51,960
Speaker 15: So you're not a fan of this administration, ambassador, and

822
00:41:52,320 --> 00:41:55,280
Speaker 15: its approach to the border, I understand, But what are you?

823
00:41:55,320 --> 00:41:56,239
Speaker 1: But are you?

824
00:41:56,800 --> 00:41:57,319
Speaker 8: Are you in.

825
00:41:57,239 --> 00:41:59,760
Speaker 15: Favor of the steps that have been taken most recently

826
00:41:59,760 --> 00:42:02,480
Speaker 15: that the stuff that Marcus has been talking about the

827
00:42:02,480 --> 00:42:07,640
Speaker 15: way they've been dealing with places like Venezuela and in

828
00:42:07,800 --> 00:42:11,600
Speaker 15: Cuba and Haiti, or is that not working well?

829
00:42:11,680 --> 00:42:17,040
Speaker 8: Look, I think they you know, after basically leaving the

830
00:42:17,120 --> 00:42:21,000
Speaker 8: door wide open for for two years for anybody who

831
00:42:21,000 --> 00:42:24,000
Speaker 8: wanted to come in, particularly people who make asylum claims,

832
00:42:25,480 --> 00:42:29,640
Speaker 8: you know, they are now kind of purporting to to

833
00:42:29,680 --> 00:42:34,160
Speaker 8: give lift service to you know, uh, doing their jobs

834
00:42:34,160 --> 00:42:36,680
Speaker 8: to enforce the law. And you know, I just remain

835
00:42:36,880 --> 00:42:41,080
Speaker 8: very very skeptical that this is more than just political

836
00:42:41,120 --> 00:42:43,600
Speaker 8: lip service because the president's running for reelection and he

837
00:42:43,680 --> 00:42:46,920
Speaker 8: knows that these images of an uncontrolled southern border. And

838
00:42:46,960 --> 00:42:48,759
Speaker 8: again it's not just people that are coming, and it's

839
00:42:48,800 --> 00:42:52,680
Speaker 8: also drugs, uh and and all kinds of other things.

840
00:42:52,680 --> 00:42:56,319
Speaker 8: These people are totally unvetted come into our country. And

841
00:42:56,360 --> 00:42:58,600
Speaker 8: of course it's really unfair to the people who are

842
00:42:58,640 --> 00:43:01,280
Speaker 8: following the rules. And you know, we have certain rules

843
00:43:01,280 --> 00:43:03,399
Speaker 8: for how you get into this country legally, we can

844
00:43:03,440 --> 00:43:05,720
Speaker 8: have a debate in this country over what the appropriate

845
00:43:05,800 --> 00:43:08,600
Speaker 8: level of legal migration should be, and Congress has set

846
00:43:08,640 --> 00:43:11,400
Speaker 8: those rules. The problem is when you have an executive

847
00:43:11,400 --> 00:43:13,520
Speaker 8: branch that basically says, well, guess what, we're going to

848
00:43:13,560 --> 00:43:16,279
Speaker 8: exercise our discretion not to enforce the law. Well, in

849
00:43:16,280 --> 00:43:19,279
Speaker 8: a sense, that's usurping the role of Congress to make

850
00:43:19,320 --> 00:43:23,360
Speaker 8: the law. The executive is basically unmade our immigration laws.

851
00:43:23,400 --> 00:43:25,319
Speaker 8: That's not the way things should work in a democracy.

852
00:43:26,400 --> 00:43:28,960
Speaker 16: Well, and we know that the House yesterday passed the

853
00:43:29,000 --> 00:43:31,719
Speaker 16: Secure of the Border Act and attempt at immigration law,

854
00:43:31,760 --> 00:43:33,759
Speaker 16: though it is dead on arrival in the Senate. And

855
00:43:33,760 --> 00:43:36,200
Speaker 16: I think everyone knew that even when it was passed.

856
00:43:36,280 --> 00:43:39,319
Speaker 16: What kind of immigration reform realistically do you think could

857
00:43:39,360 --> 00:43:42,440
Speaker 16: get through in a bipartisan manner. Where is their agreement?

858
00:43:43,000 --> 00:43:45,319
Speaker 8: Look, I think a lot of it has to do

859
00:43:45,400 --> 00:43:48,480
Speaker 8: with enforcing the laws that we have. I think, you

860
00:43:48,520 --> 00:43:51,360
Speaker 8: know that people try to get out of their failure

861
00:43:51,400 --> 00:43:53,720
Speaker 8: to do their jobs by saying, well, the system is broken,

862
00:43:53,800 --> 00:43:55,359
Speaker 8: we need to change in the law. And they kind

863
00:43:55,360 --> 00:43:58,480
Speaker 8: of know that our political system will stale and not

864
00:43:58,520 --> 00:44:01,359
Speaker 8: make that happen. But that doesn't mean that that's an

865
00:44:01,360 --> 00:44:03,680
Speaker 8: excuse then not to actually enforce the laws that we

866
00:44:03,760 --> 00:44:06,440
Speaker 8: do have. Uh. You know, I think one thing we

867
00:44:06,480 --> 00:44:09,919
Speaker 8: could certainly do in this country is to crack down

868
00:44:10,000 --> 00:44:14,080
Speaker 8: on the businesses who are giving illegal aliens jobs. I

869
00:44:14,080 --> 00:44:16,600
Speaker 8: mean again that these people are coming here for a reason.

870
00:44:17,120 --> 00:44:17,400
Speaker 9: Uh.

871
00:44:17,440 --> 00:44:20,160
Speaker 8: And we have entire industries in this country that are

872
00:44:20,200 --> 00:44:23,640
Speaker 8: built on the labor of illegal aliens, and you know,

873
00:44:23,680 --> 00:44:26,600
Speaker 8: the companies that hire them are within our jurisdiction. And

874
00:44:26,920 --> 00:44:30,240
Speaker 8: we're running around trying to catch the illegal aliens instead

875
00:44:30,239 --> 00:44:33,240
Speaker 8: of going after the businesses that are established right there

876
00:44:33,440 --> 00:44:35,879
Speaker 8: that are giving them the jobs. Again, this is this

877
00:44:35,920 --> 00:44:39,040
Speaker 8: is part of the poll the poll factor that we're exerting.

878
00:44:39,560 --> 00:44:39,719
Speaker 9: Uh.

879
00:44:39,760 --> 00:44:42,120
Speaker 8: And I think that's something that you I would hope

880
00:44:42,160 --> 00:44:45,000
Speaker 8: that the parties could agree on that. We you know,

881
00:44:45,040 --> 00:44:49,200
Speaker 8: we should certainly do more enforcement, but again smart enforcement,

882
00:44:49,640 --> 00:44:53,759
Speaker 8: not necessarily running after individual people, but going after the businesses.

883
00:44:53,800 --> 00:44:55,719
Speaker 8: Again that that that wind up giving them the jobs

884
00:44:55,760 --> 00:44:57,200
Speaker 8: that attract them here in the first place.

885
00:44:57,239 --> 00:44:59,560
Speaker 15: There's another question in there about about work visas that

886
00:44:59,600 --> 00:45:01,920
Speaker 15: I'd love to ask you about, Ambassador, But before we

887
00:45:01,960 --> 00:45:04,560
Speaker 15: get that far, did you favor the remain in Mexico policy?

888
00:45:04,600 --> 00:45:07,600
Speaker 15: And as we fast forward to the Biden administration, is

889
00:45:07,640 --> 00:45:11,400
Speaker 15: Mexico doing its part here? We understand that the President

890
00:45:11,480 --> 00:45:13,520
Speaker 15: President Biden was on the phone with AMLO for an

891
00:45:13,560 --> 00:45:16,160
Speaker 15: hour the other day, but more people are being allowed

892
00:45:16,160 --> 00:45:18,239
Speaker 15: to cross through the interior of Mexico and make their

893
00:45:18,280 --> 00:45:20,799
Speaker 15: way to the US than Washington wants to see. Where

894
00:45:20,800 --> 00:45:22,480
Speaker 15: does Mexico come in on this?

895
00:45:22,920 --> 00:45:25,920
Speaker 8: Yeah, Look, these migration issues are issues that we have

896
00:45:26,040 --> 00:45:30,320
Speaker 8: to coordinate closely with Mexico on because really the migration

897
00:45:30,600 --> 00:45:34,200
Speaker 8: issue in the past ten years or so has really

898
00:45:34,280 --> 00:45:36,200
Speaker 8: morphed from what it had been previously. It had previously

899
00:45:36,600 --> 00:45:40,520
Speaker 8: been primarily an issue of Mexicans, single adult male Mexicans

900
00:45:40,520 --> 00:45:42,239
Speaker 8: trying to get in and our system is kind of

901
00:45:42,239 --> 00:45:45,400
Speaker 8: built to deal with that issue. But when you have

902
00:45:45,640 --> 00:45:50,280
Speaker 8: non Mexicans, and when you have families as well, family units,

903
00:45:50,719 --> 00:45:53,480
Speaker 8: that really comes up our system. We can no longer

904
00:45:53,560 --> 00:45:57,200
Speaker 8: do the kind of swift removals that we have before,

905
00:45:57,440 --> 00:45:59,759
Speaker 8: and we've been seeing in the last several years that

906
00:46:00,080 --> 00:46:04,759
Speaker 8: non Mexicans have actually outnumbered Mexicans at various times. These

907
00:46:04,760 --> 00:46:07,680
Speaker 8: are people not just from Central America, but from all

908
00:46:07,680 --> 00:46:11,480
Speaker 8: over the world, from Bangladesh, from Congo, from Ukraine. So

909
00:46:12,200 --> 00:46:15,360
Speaker 8: I think there's room for us to work with Mexico

910
00:46:15,400 --> 00:46:17,719
Speaker 8: because they don't have an interest either in being the

911
00:46:17,800 --> 00:46:20,120
Speaker 8: doormatch for people from all over the world to come

912
00:46:20,160 --> 00:46:23,640
Speaker 8: illegally into the United States crossing their country. So when

913
00:46:23,640 --> 00:46:25,759
Speaker 8: I was ambassador, that's one thing that I was very

914
00:46:25,800 --> 00:46:28,759
Speaker 8: focused on saying, Hey, we actually have something that we

915
00:46:28,800 --> 00:46:32,040
Speaker 8: can work together. The remain in Mexico, I think was

916
00:46:32,120 --> 00:46:36,160
Speaker 8: the best bad alternative that we had at the time

917
00:46:36,680 --> 00:46:41,200
Speaker 8: to try to fix a loophole in our asylum system. Again,

918
00:46:41,360 --> 00:46:43,520
Speaker 8: we have our immigration laws, then we have a special

919
00:46:43,560 --> 00:46:47,520
Speaker 8: category of asylum that was created after the Second World

920
00:46:47,520 --> 00:46:49,520
Speaker 8: War in light of what had happened to the Jews there,

921
00:46:49,520 --> 00:46:51,600
Speaker 8: and I think people felt that our laws had not

922
00:46:51,800 --> 00:46:54,799
Speaker 8: been able to respond properly to that humanitarian crisis. So

923
00:46:55,200 --> 00:46:57,960
Speaker 8: we created a very narrow exception where people are allowed

924
00:46:58,000 --> 00:47:01,200
Speaker 8: to come in regardless of the immigration laws if they

925
00:47:01,239 --> 00:47:04,000
Speaker 8: have a well founded fear of persecution on the basis

926
00:47:04,000 --> 00:47:09,200
Speaker 8: of certain very specifically labeled category. But now those kinds

927
00:47:09,200 --> 00:47:13,600
Speaker 8: of asylum laws have been stretched by different administrations to

928
00:47:13,760 --> 00:47:17,480
Speaker 8: include well fear of generalized violence and poverty. So that

929
00:47:17,600 --> 00:47:21,240
Speaker 8: basically means that the asylum laws have become a huge

930
00:47:21,280 --> 00:47:23,920
Speaker 8: loophole to the entire immigration law. The acception and.

931
00:47:24,120 --> 00:47:26,840
Speaker 16: Following the rule on these on the subject of asylum,

932
00:47:26,880 --> 00:47:30,279
Speaker 16: the administration now has the requirement that migrants will have

933
00:47:30,320 --> 00:47:33,160
Speaker 16: had to have applied to asylum in the countries in

934
00:47:33,200 --> 00:47:36,200
Speaker 16: which they are passing through on their way to the US.

935
00:47:36,200 --> 00:47:39,480
Speaker 16: With your experience in Mexico and the Latin American countries

936
00:47:39,480 --> 00:47:40,560
Speaker 16: that surround.

937
00:47:40,160 --> 00:47:41,960
Speaker 3: It, is there.

938
00:47:42,160 --> 00:47:46,440
Speaker 16: The process for which migrants can realistically do that on

939
00:47:46,480 --> 00:47:48,840
Speaker 16: their way. Are they likely to be granted asylum anywhere

940
00:47:48,840 --> 00:47:49,760
Speaker 16: other than the US.

941
00:47:50,400 --> 00:47:52,759
Speaker 8: Yes, But again you know, ninety nine percent of these

942
00:47:52,800 --> 00:47:55,319
Speaker 8: are not real asylum claims. They are people who come

943
00:47:55,360 --> 00:47:58,760
Speaker 8: to the United States because and they're seeking they're filing

944
00:47:58,760 --> 00:48:02,080
Speaker 8: asylum papers because they're told this is your golden ticket

945
00:48:02,120 --> 00:48:04,040
Speaker 8: to get into the United States. But you know, if

946
00:48:04,080 --> 00:48:06,400
Speaker 8: you look at who actually is ultimately allowed in when

947
00:48:06,400 --> 00:48:10,080
Speaker 8: their cases are adjudicated, you know, ninety plus percent are

948
00:48:10,120 --> 00:48:13,279
Speaker 8: not found to qualify for asylum. Again, if they kind

949
00:48:13,280 --> 00:48:15,399
Speaker 8: of say magic words, this is why people have been

950
00:48:15,440 --> 00:48:19,680
Speaker 8: gaming the system. And I think if you because there's

951
00:48:19,719 --> 00:48:21,800
Speaker 8: so many people that are trying to gain the system

952
00:48:21,840 --> 00:48:24,279
Speaker 8: all at once that the system can't handle it. So

953
00:48:24,320 --> 00:48:26,279
Speaker 8: what they're being told is, Okay, we're going to let

954
00:48:26,320 --> 00:48:29,280
Speaker 8: you into the United States so you can live and work,

955
00:48:29,880 --> 00:48:31,480
Speaker 8: you know, and you might have a hearing in like

956
00:48:31,520 --> 00:48:35,080
Speaker 8: three or four years, okay. And so basically people are said, like,

957
00:48:35,239 --> 00:48:37,280
Speaker 8: why wouldn't I want to do that? That sounds great.

958
00:48:37,640 --> 00:48:41,000
Speaker 8: And so that's why the remain in Mexico was a

959
00:48:41,239 --> 00:48:45,680
Speaker 8: very potent way to close that loophole, because suddenly, when

960
00:48:45,680 --> 00:48:47,880
Speaker 8: you told the people, hey, you can't remain in the

961
00:48:47,920 --> 00:48:50,440
Speaker 8: United States pending your asylum process and you have to

962
00:48:50,440 --> 00:48:54,480
Speaker 8: remain in Mexico, that stream of asylum applications dried up

963
00:48:54,520 --> 00:48:57,680
Speaker 8: almost overnight. But I think again, if you think about

964
00:48:57,680 --> 00:48:59,960
Speaker 8: the purpose of asylum, it's to let somebody who's fearing

965
00:49:00,080 --> 00:49:02,040
Speaker 8: for their life on the basis of one of these

966
00:49:02,520 --> 00:49:07,200
Speaker 8: religion politics to kind of find a safe harbor once

967
00:49:07,239 --> 00:49:11,440
Speaker 8: they cross a third country. It seems very opportunistic to

968
00:49:11,520 --> 00:49:14,280
Speaker 8: cross a place where they're not in danger just to

969
00:49:14,320 --> 00:49:15,319
Speaker 8: go to you know.

970
00:49:15,320 --> 00:49:16,360
Speaker 1: To go to the better country.

971
00:49:17,080 --> 00:49:19,920
Speaker 15: We spoke ambassador yesterday with Congressman Henry Quaar, who I

972
00:49:19,920 --> 00:49:22,640
Speaker 15: suspect you've spent some time with talking about this issue.

973
00:49:22,520 --> 00:49:26,560
Speaker 15: He suggested it's time to refine, if not redefine, the

974
00:49:26,600 --> 00:49:30,320
Speaker 15: word asylum and the process. But I wonder your thoughts

975
00:49:31,000 --> 00:49:33,760
Speaker 15: here in the US in the midst of a worker

976
00:49:33,840 --> 00:49:37,239
Speaker 15: shortage that we keep hearing about here, when you know,

977
00:49:37,320 --> 00:49:40,279
Speaker 15: forget the security piece for just a moment, when it

978
00:49:40,320 --> 00:49:42,680
Speaker 15: comes to work visas, when it comes to actual to

979
00:49:42,760 --> 00:49:45,560
Speaker 15: real legal immigration here, do we need more?

980
00:49:46,640 --> 00:49:49,040
Speaker 8: Joe? I think that is the political debate that we

981
00:49:49,080 --> 00:49:51,920
Speaker 8: should be having in this country. It drives me bananas

982
00:49:52,200 --> 00:49:55,520
Speaker 8: that you know, we're talking here about illegals, right the

983
00:49:55,600 --> 00:49:58,200
Speaker 8: real there should be no debate that we as between

984
00:49:58,280 --> 00:50:02,360
Speaker 8: legal and illegal. Not want to have anybody come illegally. Frankly,

985
00:50:02,400 --> 00:50:04,359
Speaker 8: it's not fair to them because then they come here

986
00:50:04,400 --> 00:50:06,200
Speaker 8: and guess what they have to live in the shadows, right,

987
00:50:06,239 --> 00:50:08,840
Speaker 8: that's right. They have a workplace that's not safe. They

988
00:50:09,239 --> 00:50:11,879
Speaker 8: you know, they can't complain about their employer if they

989
00:50:11,960 --> 00:50:14,160
Speaker 8: you know, if they have a health crisis, a lot

990
00:50:14,160 --> 00:50:15,839
Speaker 8: of them, they'll go to the emergency room. They can't

991
00:50:15,880 --> 00:50:17,680
Speaker 8: go back home for Christmas or their other country to

992
00:50:17,719 --> 00:50:19,920
Speaker 8: see their mother or their daughter or whatever. You know,

993
00:50:20,320 --> 00:50:23,000
Speaker 8: this is it is horrible putting people in a trap

994
00:50:23,040 --> 00:50:25,239
Speaker 8: by having them come here illegally. That's why we have

995
00:50:25,360 --> 00:50:28,040
Speaker 8: this whole you know, doc up problem of you know,

996
00:50:28,280 --> 00:50:30,600
Speaker 8: you know, hundreds of thousands of kids who were born

997
00:50:30,640 --> 00:50:35,240
Speaker 8: here to parents who came here illegally. But that's because

998
00:50:35,280 --> 00:50:37,959
Speaker 8: again they they didn't have a legal status. I think

999
00:50:38,440 --> 00:50:40,279
Speaker 8: you have hit the nail on the head of the

1000
00:50:40,320 --> 00:50:42,120
Speaker 8: real question that we should be talking about.

1001
00:50:42,239 --> 00:50:44,080
Speaker 15: Well, I sure hope that once we get through the

1002
00:50:44,440 --> 00:50:47,080
Speaker 15: chaos here that's going to follow whatever whatever, to whatever

1003
00:50:47,120 --> 00:50:49,839
Speaker 15: extent it's chaos following title forty two, that we do

1004
00:50:49,920 --> 00:50:52,680
Speaker 15: have that conversation. It's one Kaylee, that's important to us

1005
00:50:52,680 --> 00:50:54,600
Speaker 15: here at Bloomberg as we cover the job market every

1006
00:50:54,600 --> 00:50:56,680
Speaker 15: month and wonder when the workers are coming back. It

1007
00:50:56,719 --> 00:50:59,400
Speaker 15: is indeed, all right, we're just getting started. Sleiah Mosen

1008
00:50:59,480 --> 00:51:01,200
Speaker 15: joins us, Now, this is Bloomberg.

1009
00:51:02,480 --> 00:51:05,840
Speaker 1: You're listening to the Bloomberg Sound on podcast. Catch the

1010
00:51:05,880 --> 00:51:09,759
Speaker 1: program live weekdays at one Eastern on Bloomberg Radio, the

1011
00:51:09,840 --> 00:51:13,160
Speaker 1: tune in app, Bloomberg dot Com, and the Bloomberg Business App.

1012
00:51:13,320 --> 00:51:16,160
Speaker 1: You can also listen live on Amazon Alexa from our

1013
00:51:16,160 --> 00:51:20,680
Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven thirty.

1014
00:51:22,719 --> 00:51:25,000
Speaker 15: We're working our way closer to the X date, even

1015
00:51:25,040 --> 00:51:27,160
Speaker 15: though we're not quite sure exactly what it is, and

1016
00:51:27,160 --> 00:51:30,400
Speaker 15: god knows, there's been at least no progress to report

1017
00:51:30,480 --> 00:51:33,440
Speaker 15: on debt ceiling talks, Kayleie. All we really know is

1018
00:51:33,440 --> 00:51:35,319
Speaker 15: that they postpone the meeting till next week, and they

1019
00:51:35,320 --> 00:51:37,560
Speaker 15: told us that's a good thing, So we're gonna believe

1020
00:51:37,560 --> 00:51:38,480
Speaker 15: that for now, right.

1021
00:51:38,560 --> 00:51:41,040
Speaker 16: Yeah, I mean, I guess there's a question of how

1022
00:51:41,120 --> 00:51:43,680
Speaker 16: much progress the staff of congressional leaders in the White

1023
00:51:43,680 --> 00:51:47,160
Speaker 16: House truly or are making, and whether it is just

1024
00:51:47,280 --> 00:51:50,080
Speaker 16: an instance of them making some headway not wanting the

1025
00:51:50,120 --> 00:51:52,800
Speaker 16: principles to disrupt whatever progress that they are making, or

1026
00:51:52,840 --> 00:51:54,840
Speaker 16: if it's just there's still a lot of details that

1027
00:51:54,880 --> 00:51:58,239
Speaker 16: need to be ironed out to actually make all the

1028
00:51:58,239 --> 00:52:01,279
Speaker 16: principles come together in a room again to talk about it.

1029
00:52:02,000 --> 00:52:03,880
Speaker 16: So we'll see what happens early next week. We are

1030
00:52:03,960 --> 00:52:05,600
Speaker 16: kind of on a deadline, not just because of the

1031
00:52:05,719 --> 00:52:08,960
Speaker 16: X Day, Joe, but because on Wednesday President Biden's supposed

1032
00:52:08,960 --> 00:52:11,160
Speaker 16: to get on a plane and head on over to Japan.

1033
00:52:11,600 --> 00:52:14,160
Speaker 15: I'm starting to think that trip doesn't happen. I don't know.

1034
00:52:14,400 --> 00:52:17,400
Speaker 15: We've got to talk about this whole thing with Seleia,

1035
00:52:17,480 --> 00:52:19,600
Speaker 15: but of course it's coming off our conversation here on

1036
00:52:19,600 --> 00:52:22,880
Speaker 15: Bloomberg with Janet Yellen earlier today in the wee hours

1037
00:52:22,920 --> 00:52:25,960
Speaker 15: of this morning, also in Japan. In Japan G seven

1038
00:52:26,040 --> 00:52:29,000
Speaker 15: finance ministers Bloomberg's and Marie Horder and our colleague on

1039
00:52:29,080 --> 00:52:31,760
Speaker 15: Balance of Power sat down with the Treasury Secretary talking

1040
00:52:31,760 --> 00:52:34,919
Speaker 15: about not just what happens, and we know that she's

1041
00:52:34,920 --> 00:52:37,640
Speaker 15: described the catastrophe that could ensue, but how she's dealing

1042
00:52:37,719 --> 00:52:40,000
Speaker 15: with it and how the communications are going between Treasury

1043
00:52:40,360 --> 00:52:40,839
Speaker 15: and the Hill.

1044
00:52:41,760 --> 00:52:42,560
Speaker 3: Here's what she said.

1045
00:52:42,719 --> 00:52:47,760
Speaker 5: More recently, I've talked to leaders of business, businesses in

1046
00:52:48,040 --> 00:52:51,480
Speaker 5: different sectors of the economy, and I will be meeting

1047
00:52:51,520 --> 00:52:55,440
Speaker 5: with senior bankers next week. I want to understand how

1048
00:52:55,480 --> 00:52:59,040
Speaker 5: they're thinking about the debt ceiling, and what I'm hearing

1049
00:52:59,320 --> 00:53:03,239
Speaker 5: is that it is a grave source of uncertainty. That

1050
00:53:03,440 --> 00:53:07,720
Speaker 5: is one of the things that business is really concerned about.

1051
00:53:07,880 --> 00:53:08,239
Speaker 1: Believe that.

1052
00:53:09,120 --> 00:53:11,479
Speaker 16: Yeah, And I mean we've heard this right from many

1053
00:53:11,520 --> 00:53:14,200
Speaker 16: business leaders Wall Street voices who have come on Bloomberg

1054
00:53:14,239 --> 00:53:17,640
Speaker 16: over the last several weeks, including Jamie Diamond yesterday warning

1055
00:53:17,680 --> 00:53:21,680
Speaker 16: about a default. But I do have to question. Obviously,

1056
00:53:21,719 --> 00:53:24,520
Speaker 16: we all know Janet Yellen very well as Treasury Secretary,

1057
00:53:24,560 --> 00:53:26,640
Speaker 16: formerly as the chair of the Federal Reserve. She is

1058
00:53:26,680 --> 00:53:29,600
Speaker 16: someone that Wall Street is very, very familiar with. Is

1059
00:53:29,719 --> 00:53:33,480
Speaker 16: Congress are the actual policymakers who are working on this

1060
00:53:33,560 --> 00:53:35,799
Speaker 16: debt limit deal? Do they have that same kind of

1061
00:53:35,880 --> 00:53:38,440
Speaker 16: trusted relationship with her. Let's get some insight on this now.

1062
00:53:38,480 --> 00:53:41,160
Speaker 16: Saliah Mosen is joining us here in studio. She is

1063
00:53:41,200 --> 00:53:44,120
Speaker 16: our senior Washington correspondent and also is well versed in

1064
00:53:44,160 --> 00:53:46,759
Speaker 16: all things Treasury because she covered the Treasury for a

1065
00:53:46,840 --> 00:53:49,360
Speaker 16: very long time. So when we're talking about this Treasury

1066
00:53:49,360 --> 00:53:53,560
Speaker 16: Secretary in particular, it's Janet Yellen. Obviously we all know her,

1067
00:53:53,600 --> 00:53:55,440
Speaker 16: we have known her for some time. But does she

1068
00:53:55,600 --> 00:53:58,959
Speaker 16: have a direct line to Speaker McCarthy as she does

1069
00:53:59,000 --> 00:54:01,360
Speaker 16: the White House. How does she kind of triangulate all

1070
00:54:01,400 --> 00:54:02,359
Speaker 16: the different players here?

1071
00:54:02,640 --> 00:54:04,640
Speaker 19: You know, she doesn't. She doesn't have a direct line

1072
00:54:04,640 --> 00:54:08,280
Speaker 19: to Kevin McCarthy right now. This is a Treasure secretary

1073
00:54:08,280 --> 00:54:12,359
Speaker 19: who came in with tremendous economic gravita. She has the

1074
00:54:12,400 --> 00:54:17,480
Speaker 19: full respect of lawmakers and economists on both sides of

1075
00:54:17,520 --> 00:54:19,799
Speaker 19: the aisle, and that is very important in such a

1076
00:54:19,880 --> 00:54:25,040
Speaker 19: highly politicized environment to have someone who everyone can trust.

1077
00:54:25,280 --> 00:54:28,200
Speaker 19: But the downsides of having someone like that is that

1078
00:54:28,239 --> 00:54:33,200
Speaker 19: she is not naturally a political person. So her political

1079
00:54:33,239 --> 00:54:36,560
Speaker 19: instincts are not quite what previous Treasure secretaries or other

1080
00:54:36,640 --> 00:54:40,279
Speaker 19: administration officials are, And so that's for achilles heel here.

1081
00:54:40,320 --> 00:54:44,600
Speaker 19: She does not have those direct conversations or direct relationships

1082
00:54:45,040 --> 00:54:47,719
Speaker 19: like the last time around during the Trump administration a

1083
00:54:47,719 --> 00:54:51,600
Speaker 19: few debt selling fights ago that then Treasure Secretary Steven

1084
00:54:51,719 --> 00:54:55,279
Speaker 19: Mnusian and then House Speaker Nancy Pelosi, those were the

1085
00:54:55,320 --> 00:54:58,320
Speaker 19: only two people in the room when those negotiations were happening.

1086
00:54:58,440 --> 00:55:01,480
Speaker 19: Happening Mnusian was actually the only person who could possibly

1087
00:55:01,520 --> 00:55:04,680
Speaker 19: speak to Pelosi because the President was definitely not speaking

1088
00:55:04,719 --> 00:55:07,320
Speaker 19: to her. We're looking at something a little bit different,

1089
00:55:07,520 --> 00:55:09,800
Speaker 19: but the White House does have a lot of people

1090
00:55:10,000 --> 00:55:16,000
Speaker 19: with those ties to lawmakers. President Biden himself knows Congress

1091
00:55:16,520 --> 00:55:17,319
Speaker 19: very very well.

1092
00:55:17,360 --> 00:55:20,719
Speaker 3: You and Saturday Apri decades. Yes, absolutely, So.

1093
00:55:20,680 --> 00:55:24,400
Speaker 15: You've got the political side in dealing with lawmakers, Saliah.

1094
00:55:24,400 --> 00:55:27,440
Speaker 15: But how about dealing with corporations? JP Morgan Chase is

1095
00:55:27,480 --> 00:55:30,200
Speaker 15: set up a war room we're reporting looking at contingencies

1096
00:55:31,000 --> 00:55:33,400
Speaker 15: if the debt limit is not raised in time.

1097
00:55:33,760 --> 00:55:34,719
Speaker 13: It's a former.

1098
00:55:34,520 --> 00:55:37,560
Speaker 15: Fed share as well. Does that give her the upper

1099
00:55:37,600 --> 00:55:39,279
Speaker 15: hand in dealing with the other side of the story,

1100
00:55:39,320 --> 00:55:40,480
Speaker 15: which is corporate America?

1101
00:55:40,480 --> 00:55:45,320
Speaker 19: Absolutely, Wall Street, Corporate America, industry economists around the world,

1102
00:55:45,400 --> 00:55:48,720
Speaker 19: finance ministers around the world, and foreign leaders. They trust

1103
00:55:48,760 --> 00:55:52,720
Speaker 19: the judgment of someone like Janet Yellen, who is battle tested.

1104
00:55:53,160 --> 00:55:56,880
Speaker 19: She fought through the global financial crisis in two thousand

1105
00:55:56,880 --> 00:56:00,560
Speaker 19: and eight, she got helped Europe get through the crunch

1106
00:56:00,560 --> 00:56:03,600
Speaker 19: in twenty eleven, and now she's treasure Secretary. So she

1107
00:56:03,760 --> 00:56:07,600
Speaker 19: has those relationships and they know that she has extremely

1108
00:56:07,640 --> 00:56:11,360
Speaker 19: deep knowledge. So if she's saying something, she knows something.

1109
00:56:11,920 --> 00:56:14,960
Speaker 16: It's funny as we kind of recall crises that Jenny

1110
00:56:15,000 --> 00:56:18,400
Speaker 16: Ellen has gotten through in the past and has obviously

1111
00:56:18,400 --> 00:56:20,960
Speaker 16: played a role in the aftermath of them and trying

1112
00:56:20,960 --> 00:56:24,200
Speaker 16: to fix things, but she has repeatedly warned there's not

1113
00:56:24,280 --> 00:56:27,080
Speaker 16: much she can do if the US defaults ultimately. She

1114
00:56:27,120 --> 00:56:30,279
Speaker 16: consistently reiterates this as Congress's problem. Don't think that there

1115
00:56:30,320 --> 00:56:31,919
Speaker 16: is something Treasury is going to be able to pull

1116
00:56:31,920 --> 00:56:34,560
Speaker 16: out of a hat like a magician if ultimately we

1117
00:56:34,640 --> 00:56:36,440
Speaker 16: get to the X state and it's not lifted.

1118
00:56:36,560 --> 00:56:37,799
Speaker 4: Is that really true? Though?

1119
00:56:37,840 --> 00:56:40,000
Speaker 16: I feel like Treasury has been very clouded around what

1120
00:56:40,120 --> 00:56:43,560
Speaker 16: actually happens on the X state. If they've reached the limit,

1121
00:56:43,640 --> 00:56:44,919
Speaker 16: what do they do on that day?

1122
00:56:45,040 --> 00:56:47,719
Speaker 19: Yeah, you're supposed to be confused about this. They've done

1123
00:56:47,719 --> 00:56:49,880
Speaker 19: their job well if you and I are confused about this.

1124
00:56:50,040 --> 00:56:53,160
Speaker 19: So what the thing is that with Congress they are

1125
00:56:53,200 --> 00:56:56,520
Speaker 19: going to fight until the absolute last minute, because it's

1126
00:56:56,560 --> 00:57:00,279
Speaker 19: all about who blinks first and who caved first, who

1127
00:57:00,280 --> 00:57:03,320
Speaker 19: comes out looking like they got they landed on top.

1128
00:57:03,960 --> 00:57:07,240
Speaker 19: So that means that the FED and the Church Department

1129
00:57:07,400 --> 00:57:10,960
Speaker 19: keeps some information to themselves. They did this in twenty eleven.

1130
00:57:11,040 --> 00:57:14,640
Speaker 19: We didn't realize until years later when certain documents were

1131
00:57:14,719 --> 00:57:17,480
Speaker 19: FOYA but also had to come out just through regular

1132
00:57:17,520 --> 00:57:20,880
Speaker 19: transparency rules with a lag time that there was a

1133
00:57:20,920 --> 00:57:24,360
Speaker 19: lot more planning that had been done for a default,

1134
00:57:24,600 --> 00:57:28,320
Speaker 19: a potential default that was twelve years ago. We have

1135
00:57:28,360 --> 00:57:31,720
Speaker 19: a very different landscape in terms of what technology offers us.

1136
00:57:32,040 --> 00:57:33,000
Speaker 4: And it is also up to the.

1137
00:57:32,960 --> 00:57:36,320
Speaker 19: Discretion of the Treasure Secretary and the current administration. Do

1138
00:57:36,360 --> 00:57:38,680
Speaker 19: we want to have to play these little games to

1139
00:57:38,840 --> 00:57:42,920
Speaker 19: not actually default or are we just gonna let it happen.

1140
00:57:43,360 --> 00:57:46,480
Speaker 15: So the idea here is that prioritization, as some have

1141
00:57:46,520 --> 00:57:49,160
Speaker 15: been arguing about, this is not a new concept than

1142
00:57:49,200 --> 00:57:52,240
Speaker 15: the lawmakers. They actually had that on paper somewhere in

1143
00:57:52,280 --> 00:57:56,000
Speaker 15: twenty eleven. She talked about what happens if we crossed

1144
00:57:56,040 --> 00:57:57,439
Speaker 15: the threshold here with Anne Marie.

1145
00:57:57,600 --> 00:58:01,640
Speaker 5: What I've said is early June, and potentially as early

1146
00:58:01,680 --> 00:58:04,480
Speaker 5: as June one. As we get closer, I may be

1147
00:58:04,600 --> 00:58:08,800
Speaker 5: able to provide more refined guidance. But you know, there

1148
00:58:08,880 --> 00:58:12,360
Speaker 5: is a lot of uncertainty about the exact level of

1149
00:58:12,400 --> 00:58:17,080
Speaker 5: cash balances and payments that we have to make from

1150
00:58:17,200 --> 00:58:21,320
Speaker 5: day to day, and so there remains a level of

1151
00:58:21,440 --> 00:58:25,840
Speaker 5: uncertainty about precisely when we would run out of cash

1152
00:58:25,880 --> 00:58:27,720
Speaker 5: to be able to pay the government's bills.

1153
00:58:27,880 --> 00:58:31,640
Speaker 15: I was speaking with the Republican staffer on the Hill yesterday, Seleiah,

1154
00:58:31,640 --> 00:58:34,200
Speaker 15: who said, that's not a default. We'll still have money

1155
00:58:34,200 --> 00:58:37,640
Speaker 15: to pay the holders of our debt. So there are

1156
00:58:37,680 --> 00:58:39,920
Speaker 15: a couple of different ways to look at the concept

1157
00:58:39,920 --> 00:58:42,200
Speaker 15: of prioritization, but the administration is having.

1158
00:58:42,040 --> 00:58:42,600
Speaker 1: None of that, right.

1159
00:58:42,720 --> 00:58:44,120
Speaker 19: This is what you have when you have a lot

1160
00:58:44,160 --> 00:58:47,120
Speaker 19: of lawyers running the country. They're all just looking at

1161
00:58:47,120 --> 00:58:50,560
Speaker 19: the definition of a default. But it's also just perception.

1162
00:58:50,920 --> 00:58:54,560
Speaker 19: If other countries say, well, you did not pay certain

1163
00:58:54,640 --> 00:58:58,000
Speaker 19: obligations on time, that means that's a default. You can

1164
00:58:58,200 --> 00:59:01,160
Speaker 19: catch us in semantics if you want to, We're calling

1165
00:59:01,200 --> 00:59:01,800
Speaker 19: it a default.

1166
00:59:02,160 --> 00:59:05,240
Speaker 16: Well, and ultimately, doesn't it matter what the rating agencies think,

1167
00:59:05,280 --> 00:59:08,720
Speaker 16: whatever their definition is, and how that affects the US's

1168
00:59:08,760 --> 00:59:11,520
Speaker 16: credit rating and financial markets. I feel like that's ultimately

1169
00:59:11,560 --> 00:59:13,920
Speaker 16: the tell here. And yet, Leah, are the markets working

1170
00:59:13,960 --> 00:59:16,280
Speaker 16: against Janet Yellen and the people trying to negotiate a

1171
00:59:16,280 --> 00:59:18,880
Speaker 16: deal right now because they don't look panicked and that

1172
00:59:19,000 --> 00:59:20,560
Speaker 16: makes it less of an incentive.

1173
00:59:20,680 --> 00:59:23,600
Speaker 19: Perhaps that's an interesting concept. I'm going to point to

1174
00:59:23,640 --> 00:59:27,280
Speaker 19: what Jamie Diamond said exclusively on Bloomberg TV yesterday. Yeah,

1175
00:59:27,360 --> 00:59:30,840
Speaker 19: he said that you know Bloomberg, you know Francin and

1176
00:59:30,920 --> 00:59:36,040
Speaker 19: Loachwa asked, will Congress act once there's anxiety in markets?

1177
00:59:36,040 --> 00:59:37,880
Speaker 19: And he said, we don't want to get to that

1178
00:59:37,960 --> 00:59:41,880
Speaker 19: point because that nervousness in markets can get out of control.

1179
00:59:41,960 --> 00:59:44,440
Speaker 19: It's not just a button. Today I'm nervous and tomorrow

1180
00:59:44,480 --> 00:59:48,880
Speaker 19: I'm better. There is a whole market psychology that grips

1181
00:59:48,960 --> 00:59:52,240
Speaker 19: the markets, and it could tip us into some direction

1182
00:59:52,360 --> 00:59:55,320
Speaker 19: that we don't see coming, policymakers don't see coming, and

1183
00:59:55,360 --> 00:59:58,200
Speaker 19: you could later trace it back to when we didn't

1184
00:59:58,400 --> 01:00:01,480
Speaker 19: save the economy from another calamity.

1185
01:00:01,440 --> 01:00:04,160
Speaker 16: And then it's a question of who gets blamed then, Joe.

1186
01:00:04,160 --> 01:00:05,760
Speaker 15: Yeah, And I'm starting to feel like, I mean, look,

1187
01:00:05,760 --> 01:00:07,760
Speaker 15: it's not twenty eleven. I'm starting to feel like everybody

1188
01:00:08,120 --> 01:00:10,240
Speaker 15: carries some blame here if we got that far, don't

1189
01:00:10,280 --> 01:00:11,680
Speaker 15: you what do you think about that, Salam There are

1190
01:00:11,680 --> 01:00:13,520
Speaker 15: a lot of assumptions about blame. I feel like they

1191
01:00:13,560 --> 01:00:15,040
Speaker 15: all go out the window if it really happens.

1192
01:00:15,120 --> 01:00:17,960
Speaker 19: Absolutely, it is so easy for Democrats right now to

1193
01:00:18,000 --> 01:00:21,560
Speaker 19: point to the to Maga, Republicans or anyone, but Democrats

1194
01:00:21,720 --> 01:00:25,920
Speaker 19: held Congress. Why did they not pass a law right then?

1195
01:00:25,960 --> 01:00:29,480
Speaker 19: And there that eliminated the debt ceiling, or anytime you

1196
01:00:29,680 --> 01:00:33,200
Speaker 19: approve fiscal spending, you have automatically raised the debt sealing.

1197
01:00:32,920 --> 01:00:33,200
Speaker 1: Isn't it?

1198
01:00:33,200 --> 01:00:35,560
Speaker 15: Because they wanted to paint Kevin McCarthy into a corner

1199
01:00:35,600 --> 01:00:37,240
Speaker 15: here that may be backfiring a little bit.

1200
01:00:37,360 --> 01:00:39,560
Speaker 19: So they are playing with fire, just like he is.

1201
01:00:39,640 --> 01:00:43,400
Speaker 15: Absolutely right. We accomplished something here, didn't we, Slea. You

1202
01:00:43,400 --> 01:00:44,920
Speaker 15: need to come buy more off and come see us

1203
01:00:44,920 --> 01:00:47,760
Speaker 15: here more often. On Bloomberg's sound on Salia MOOSM Bloomberg

1204
01:00:47,840 --> 01:00:49,480
Speaker 15: Senior Washington Correspondent.

1205
01:00:50,360 --> 01:00:53,880
Speaker 1: You're listening to the Bloomberg Sound on podcast. Catch us

1206
01:00:53,920 --> 01:00:57,080
Speaker 1: live weekdays at one Eastern on Bloomberg dot com, the

1207
01:00:57,120 --> 01:01:00,640
Speaker 1: iHeartRadio app, and the Bloomberg Business App. There's non demand

1208
01:01:00,720 --> 01:01:02,240
Speaker 1: wherever you get your podcast.

1209
01:01:04,240 --> 01:01:07,360
Speaker 15: You wonder if the Treasury will refine the X date

1210
01:01:07,640 --> 01:01:10,080
Speaker 15: at some point, at least be more specific, Keylee, because

1211
01:01:10,560 --> 01:01:12,480
Speaker 15: everybody's working against the clock, but we don't know when

1212
01:01:12,480 --> 01:01:13,400
Speaker 15: the clock runs out.

1213
01:01:13,640 --> 01:01:15,200
Speaker 3: Yeah, it's very vague. Of course.

1214
01:01:15,280 --> 01:01:17,919
Speaker 16: Janet Yellen, the Treasury Secretary, when she wrote that letter

1215
01:01:17,960 --> 01:01:19,760
Speaker 16: to Congress, what was that one week ago?

1216
01:01:19,880 --> 01:01:21,240
Speaker 8: I guess two time?

1217
01:01:21,280 --> 01:01:23,840
Speaker 16: All Blurst together just like this X date is very,

1218
01:01:23,920 --> 01:01:28,720
Speaker 16: very blurry, because she said mid June theoretically is when

1219
01:01:28,920 --> 01:01:31,120
Speaker 16: the US Treasury will no longer be able to pay

1220
01:01:31,240 --> 01:01:35,240
Speaker 16: the US's debts fulfill its obligations, potentially as early as

1221
01:01:35,360 --> 01:01:38,240
Speaker 16: June first, of course, the operative words there being as

1222
01:01:38,360 --> 01:01:41,880
Speaker 16: early as so could it be June one, perhaps that's

1223
01:01:41,960 --> 01:01:43,760
Speaker 16: the date, Could it be June twelve?

1224
01:01:44,120 --> 01:01:45,280
Speaker 3: Well, maybe that too.

1225
01:01:45,160 --> 01:01:45,600
Speaker 1: Wonder right.

1226
01:01:45,600 --> 01:01:47,920
Speaker 15: Bill Hoglan from the Bipartisan Policy Center said, if you

1227
01:01:47,960 --> 01:01:50,600
Speaker 15: clear June fifteenth, you get another bunch of revenue around

1228
01:01:50,640 --> 01:01:52,680
Speaker 15: that time that brings it in July, and I don't

1229
01:01:52,680 --> 01:01:55,080
Speaker 15: know what happens after that, but this is you know,

1230
01:01:55,160 --> 01:01:57,800
Speaker 15: this is the conversation here, and it's it's even creeped

1231
01:01:57,800 --> 01:02:01,000
Speaker 15: its way into Wall Street Week with David Weston, not

1232
01:02:01,040 --> 01:02:02,600
Speaker 15: that they weren't already looking at it, but this is

1233
01:02:02,680 --> 01:02:04,840
Speaker 15: quickly becoming a front burner issue for the markets. And

1234
01:02:04,880 --> 01:02:07,440
Speaker 15: I'm delighted to say that David Weston is back with

1235
01:02:07,560 --> 01:02:11,280
Speaker 15: us from world headquarters in New York. Happy Friday, David.

1236
01:02:11,280 --> 01:02:13,760
Speaker 15: That of course means Wall Street Week. That's almost three

1237
01:02:13,760 --> 01:02:17,360
Speaker 15: hours away from now, and it's issue number one right now,

1238
01:02:17,400 --> 01:02:17,640
Speaker 15: isn't it.

1239
01:02:17,680 --> 01:02:19,400
Speaker 13: Yeah, it is a really big issue on Wall Street,

1240
01:02:19,440 --> 01:02:21,560
Speaker 13: as it should be. And when you talk about the

1241
01:02:21,640 --> 01:02:23,280
Speaker 13: X day, it strikes me. When I was practicing law,

1242
01:02:23,320 --> 01:02:24,680
Speaker 13: we used to say, you can argue about it or

1243
01:02:24,720 --> 01:02:26,120
Speaker 13: look it up. Why do we want to look this

1244
01:02:26,160 --> 01:02:27,760
Speaker 13: one up? Why do we want to come so close

1245
01:02:27,760 --> 01:02:29,520
Speaker 13: we actually know when the X date is? How we

1246
01:02:29,560 --> 01:02:31,200
Speaker 13: shouldn't be asking ourselves that question?

1247
01:02:32,280 --> 01:02:32,680
Speaker 1: True.

1248
01:02:33,240 --> 01:02:35,640
Speaker 15: You spoke with Blair e Fron it's going to be

1249
01:02:35,640 --> 01:02:38,720
Speaker 15: on the program Tonight's Interview Partners on the debt ceiling issue.

1250
01:02:38,760 --> 01:02:39,479
Speaker 13: Here's what he said.

1251
01:02:39,560 --> 01:02:41,760
Speaker 20: Everything from a clean debt ceiling to a promise to

1252
01:02:41,800 --> 01:02:44,640
Speaker 20: negotiate to kicking the cant on the road is hard,

1253
01:02:44,720 --> 01:02:47,840
Speaker 20: but it will tell you this progress. I do think

1254
01:02:47,880 --> 01:02:51,840
Speaker 20: that the markets will not embrace in any way some

1255
01:02:51,880 --> 01:02:55,480
Speaker 20: of the ideas that are say more creative. Everything from

1256
01:02:55,480 --> 01:03:00,600
Speaker 20: the fourteenth Amendment to priortization all difficult, and I think

1257
01:03:00,640 --> 01:03:03,240
Speaker 20: that the markets will be at a minimum shopping, but

1258
01:03:03,280 --> 01:03:07,440
Speaker 20: much more likely highly valuable. In fact, right now, the

1259
01:03:07,480 --> 01:03:10,960
Speaker 20: credit default swap spread is much higher than it was.

1260
01:03:10,960 --> 01:03:13,160
Speaker 20: You wrecked in twenty eleven, were four times higher than

1261
01:03:13,160 --> 01:03:13,840
Speaker 20: it wasn't twenty.

1262
01:03:13,640 --> 01:03:16,120
Speaker 15: Eleven, four times higher, David, When does it really start

1263
01:03:16,160 --> 01:03:17,400
Speaker 15: to hang on the equity market.

1264
01:03:17,440 --> 01:03:19,160
Speaker 13: Well, it's interesting when you look back at twenty eleven,

1265
01:03:19,200 --> 01:03:21,080
Speaker 13: the last time we really can't walked right up to

1266
01:03:21,120 --> 01:03:24,000
Speaker 13: it and got in trouble. The equity markets didn't respond

1267
01:03:24,040 --> 01:03:25,960
Speaker 13: to you were just about two. It ended up being

1268
01:03:26,080 --> 01:03:28,520
Speaker 13: the X date, and then they reacted a lot. I

1269
01:03:28,520 --> 01:03:30,959
Speaker 13: mean they lost like s and po lost like twenty percent,

1270
01:03:31,080 --> 01:03:33,440
Speaker 13: twenty percent come back right away. It took a while,

1271
01:03:33,560 --> 01:03:35,480
Speaker 13: and of course there's a downgrading the debt, which costs

1272
01:03:35,480 --> 01:03:37,360
Speaker 13: the US government a lot of money in terms of borrowing.

1273
01:03:37,680 --> 01:03:40,400
Speaker 13: So unfortunately the markets tend to wait till littl Aria's

1274
01:03:40,440 --> 01:03:43,360
Speaker 13: last moment. But I thought that the Secretary Yellen conversation

1275
01:03:43,400 --> 01:03:46,240
Speaker 13: with Ann Marie hordernover in Japan really revealed the fact

1276
01:03:46,240 --> 01:03:48,640
Speaker 13: that she doesn't want to give too much sucker, too

1277
01:03:48,760 --> 01:03:50,800
Speaker 13: much encouragement to the markets, because she sort of wants

1278
01:03:50,840 --> 01:03:52,520
Speaker 13: the markets to put some pressure I think on the

1279
01:03:52,560 --> 01:03:54,880
Speaker 13: Republicans on Capitol Hill.

1280
01:03:55,040 --> 01:03:58,400
Speaker 16: Well, I'm the subject to the Republicans on Capitol Hill, David.

1281
01:03:58,400 --> 01:04:01,000
Speaker 16: We know that they are arguing for spending cuts.

1282
01:04:01,040 --> 01:04:02,200
Speaker 3: That's what they would like to see.

1283
01:04:02,200 --> 01:04:04,560
Speaker 16: They want deficit reduction, they want that to be part

1284
01:04:04,600 --> 01:04:08,560
Speaker 16: of this debt limit package, whereas the White House is arguing, Okay,

1285
01:04:08,600 --> 01:04:09,920
Speaker 16: we'll talk about it, but we want.

1286
01:04:09,720 --> 01:04:11,400
Speaker 3: It to be part of the budget package.

1287
01:04:11,440 --> 01:04:13,000
Speaker 16: From your point of view, everything you've seen, does it

1288
01:04:13,040 --> 01:04:15,600
Speaker 16: feel like we're anyone is on the same page as

1289
01:04:15,640 --> 01:04:19,040
Speaker 16: we talk about how staffers are making progress.

1290
01:04:19,280 --> 01:04:21,360
Speaker 13: Now, it's funny, Keally. The thing I've been hearing for

1291
01:04:21,400 --> 01:04:23,880
Speaker 13: the last month or so from sort of the corporate community,

1292
01:04:23,920 --> 01:04:26,440
Speaker 13: the c suite is everybody thinks we're going to get

1293
01:04:26,480 --> 01:04:28,760
Speaker 13: past this, but nobody has a clue about how we're going.

1294
01:04:28,760 --> 01:04:29,080
Speaker 1: To do it.

1295
01:04:29,160 --> 01:04:31,800
Speaker 13: And I don't see it yet either, Although I was fascinating,

1296
01:04:31,800 --> 01:04:34,280
Speaker 13: I'm sure you were as well. The report yesterday that

1297
01:04:34,440 --> 01:04:37,040
Speaker 13: maybe permitting might be part of the help, which, by

1298
01:04:37,080 --> 01:04:39,720
Speaker 13: the way, happens to appeal to one senator from West

1299
01:04:39,800 --> 01:04:43,000
Speaker 13: Virches City pre tends to be the one who decides

1300
01:04:43,040 --> 01:04:44,800
Speaker 13: all this stuff in the end in Washington.

1301
01:04:44,520 --> 01:04:47,880
Speaker 15: Right, absolutely, And it just speaks to this idea that

1302
01:04:48,400 --> 01:04:51,280
Speaker 15: President Biden needs to come up with something that he

1303
01:04:51,320 --> 01:04:55,280
Speaker 15: can offer Kevin McCarthy to break the ice here, something

1304
01:04:55,280 --> 01:04:57,680
Speaker 15: he can go back to the Republican Caucus with and say,

1305
01:04:57,720 --> 01:05:00,760
Speaker 15: look what I got, And permitting reform might be that thing.

1306
01:05:00,840 --> 01:05:03,200
Speaker 13: David, Yeah, exactly. And the President has not been against

1307
01:05:03,240 --> 01:05:05,240
Speaker 13: permitting reform. It depends on how big it is and

1308
01:05:05,280 --> 01:05:06,840
Speaker 13: how far it goes. He's been in favor of it.

1309
01:05:07,040 --> 01:05:09,000
Speaker 13: He also already has sort of put on a table,

1310
01:05:09,000 --> 01:05:11,760
Speaker 13: hasn't he the question of the COVID funds that have

1311
01:05:11,800 --> 01:05:14,200
Speaker 13: not been dispersed. That is also kind of a little

1312
01:05:14,200 --> 01:05:15,760
Speaker 13: bit of a gift. So, I mean, you see a

1313
01:05:15,800 --> 01:05:18,000
Speaker 13: little bit of a movement where the President's saying, I'm

1314
01:05:18,000 --> 01:05:20,440
Speaker 13: not really giving anything. I'm not willing to give anyway.

1315
01:05:20,520 --> 01:05:22,720
Speaker 13: So is that enough for your caucus? But boy, being

1316
01:05:22,800 --> 01:05:24,800
Speaker 13: enough for that caucus, I'm not sure what that looks like.

1317
01:05:25,320 --> 01:05:25,600
Speaker 4: I don't know.

1318
01:05:25,800 --> 01:05:27,600
Speaker 15: Kevin McCarthy knows, Kaylee.

1319
01:05:27,440 --> 01:05:29,080
Speaker 16: Do any of us know. It just feels like we're

1320
01:05:29,120 --> 01:05:32,440
Speaker 16: all just kind of objects of speculation and hypotheticals at

1321
01:05:32,440 --> 01:05:34,919
Speaker 16: this point, and it's gonna keep going on because we thought,

1322
01:05:35,000 --> 01:05:37,680
Speaker 16: you know, maybe we'd have some more firm progress in

1323
01:05:37,680 --> 01:05:39,560
Speaker 16: the meeting at the White House today, and instead that's

1324
01:05:40,240 --> 01:05:42,080
Speaker 16: pushed next week, so we have at least a few

1325
01:05:42,080 --> 01:05:45,520
Speaker 16: more days of talking and hypotheticals. David, you mentioned earlier

1326
01:05:45,560 --> 01:05:47,120
Speaker 16: though that what you hear from Wall Street is that

1327
01:05:47,160 --> 01:05:49,240
Speaker 16: everybody thinks that this is going to get sorted out.

1328
01:05:49,280 --> 01:05:51,439
Speaker 16: We were just speaking with Silia Mosen as well about

1329
01:05:51,440 --> 01:05:54,960
Speaker 16: how the market just doesn't seem that concerned at this point,

1330
01:05:55,000 --> 01:05:57,360
Speaker 16: and it makes me wonder if everything ultimately does hinge

1331
01:05:57,400 --> 01:05:59,200
Speaker 16: on the market, if the market freaks out, that it's

1332
01:05:59,240 --> 01:06:03,480
Speaker 16: an incentive to get something done, but that's not actually.

1333
01:06:03,040 --> 01:06:03,760
Speaker 3: What is happening.

1334
01:06:03,920 --> 01:06:06,720
Speaker 13: Well, yeah, you hope in a sense I would like

1335
01:06:06,800 --> 01:06:08,400
Speaker 13: not to get to that point, but that actually the

1336
01:06:08,400 --> 01:06:10,480
Speaker 13: people in Capitolill would pay chains to the markets. My

1337
01:06:10,560 --> 01:06:13,240
Speaker 13: fear is maybe they wouldn't. That there are some people

1338
01:06:13,320 --> 01:06:15,720
Speaker 13: up there in the Republican Caucus that don't really want

1339
01:06:15,760 --> 01:06:19,520
Speaker 13: to fix this problem. They have other agendas, fiscal arsonists exactly.

1340
01:06:19,560 --> 01:06:21,840
Speaker 13: That's my fear at least. I must say. One of

1341
01:06:21,840 --> 01:06:23,560
Speaker 13: the things I find interesting in what Blair Effront had

1342
01:06:23,600 --> 01:06:25,200
Speaker 13: to say. It's been a lot of talk about the

1343
01:06:25,200 --> 01:06:27,520
Speaker 13: Fourteenth Amendment, section four of the fourteenth Amendment and doing

1344
01:06:27,520 --> 01:06:31,160
Speaker 13: special things like really the president just writing the checks anyway,

1345
01:06:31,480 --> 01:06:33,000
Speaker 13: And as a recovering lawyer, I've paid a lot of

1346
01:06:33,000 --> 01:06:35,240
Speaker 13: attention to that and where it came from. But what

1347
01:06:35,800 --> 01:06:38,280
Speaker 13: really rang true to me was Blair saying, wait a second,

1348
01:06:38,320 --> 01:06:40,080
Speaker 13: you think Wall Street is going to put up with that?

1349
01:06:40,240 --> 01:06:42,880
Speaker 13: I mean, we're going to try this untested theory and

1350
01:06:42,960 --> 01:06:44,640
Speaker 13: let the Supreme Court stort it out two or three

1351
01:06:44,680 --> 01:06:46,960
Speaker 13: years down the road. We can't have the entire financial

1352
01:06:46,960 --> 01:06:49,400
Speaker 13: system based on that. That's just too speculative.

1353
01:06:49,720 --> 01:06:51,400
Speaker 15: Yeah, that's not going to work for a lot of people,

1354
01:06:51,400 --> 01:06:53,480
Speaker 15: including the President, even though he did acknowledge that as

1355
01:06:53,480 --> 01:06:57,880
Speaker 15: a possibility. David, So, here we are walking up on

1356
01:06:57,920 --> 01:07:00,920
Speaker 15: a next day, but also walking out of earnings reporting season,

1357
01:07:01,600 --> 01:07:03,840
Speaker 15: and it's interesting. I wonder if that's part of the

1358
01:07:03,840 --> 01:07:07,640
Speaker 15: conversations on Wall Street Week and what you're hearing from analysts, David.

1359
01:07:07,680 --> 01:07:09,680
Speaker 15: A lot of folks were very nervous going into this period.

1360
01:07:09,680 --> 01:07:12,080
Speaker 15: It's actually played quite well for a lot of big companies.

1361
01:07:12,160 --> 01:07:14,920
Speaker 13: Well, it's done better than the expectations now in fairness,

1362
01:07:14,960 --> 01:07:16,680
Speaker 13: and by the way, actually Blair O friend referred to

1363
01:07:16,720 --> 01:07:19,120
Speaker 13: this as well. The expectations were taken down, so they're

1364
01:07:19,120 --> 01:07:21,520
Speaker 13: beating a lower bar, but still they're breeding it, which

1365
01:07:21,600 --> 01:07:23,760
Speaker 13: is good news. It will very much be a discussion,

1366
01:07:23,760 --> 01:07:25,560
Speaker 13: particularly at the beginning of the program, about where we

1367
01:07:25,560 --> 01:07:27,560
Speaker 13: think the earnings are. You know, We have these elves,

1368
01:07:27,600 --> 01:07:29,760
Speaker 13: these twenty four securities analysts that we refer to a

1369
01:07:29,800 --> 01:07:32,479
Speaker 13: Bloomberg who are making projections about where their earnings are,

1370
01:07:32,760 --> 01:07:35,080
Speaker 13: and we're comparing where they are with where we think

1371
01:07:35,080 --> 01:07:37,760
Speaker 13: we are, and that's down about seven percent year over year.

1372
01:07:37,760 --> 01:07:40,240
Speaker 13: They're expecting on earnings per share, and we're going to

1373
01:07:40,240 --> 01:07:42,360
Speaker 13: talk about exactly where we think those earnings are coming

1374
01:07:42,400 --> 01:07:44,280
Speaker 13: in because that obviously will have a lot of effect

1375
01:07:44,520 --> 01:07:45,760
Speaker 13: on the securities markets.

1376
01:07:46,120 --> 01:07:47,840
Speaker 16: The elves are whispering.

1377
01:07:47,680 --> 01:07:50,320
Speaker 15: Yes, right, People don't realize this terminal. It doesn't just

1378
01:07:50,400 --> 01:07:52,000
Speaker 15: run on magic, it runs on el.

1379
01:07:52,040 --> 01:07:53,920
Speaker 16: Yeah, just like Santa's workshops.

1380
01:07:54,760 --> 01:07:56,560
Speaker 13: The good news is those elves are actually proud of

1381
01:07:56,600 --> 01:07:58,600
Speaker 13: being elves. We had one on last week and she

1382
01:07:58,680 --> 01:08:00,120
Speaker 13: was proud of the fact we did that make her

1383
01:08:00,160 --> 01:08:00,800
Speaker 13: wear a little hat.

1384
01:08:01,920 --> 01:08:04,320
Speaker 15: That's very kind of you. Anything else we're looking forward

1385
01:08:04,320 --> 01:08:06,160
Speaker 15: to tonight at six o'clock Wall Street time.

1386
01:08:06,320 --> 01:08:09,680
Speaker 13: Well, actually, yes, we've got Randall Coral's remember that name

1387
01:08:10,000 --> 01:08:13,160
Speaker 13: for Vice chair of the FED Responsible Pursuer Vision. He's

1388
01:08:13,200 --> 01:08:15,480
Speaker 13: going to be on. He's sort of conducting a campaign

1389
01:08:15,520 --> 01:08:18,799
Speaker 13: of defense, saying Silicon Valley wasn't bank, wasn't his fault?

1390
01:08:19,000 --> 01:08:21,120
Speaker 13: He didn't ease up on the regulations. It was the

1391
01:08:21,240 --> 01:08:24,040
Speaker 13: management's fault. You shouldn't look at him, don't blame him.

1392
01:08:24,200 --> 01:08:26,479
Speaker 15: It's amazing how fast the headlines crossed. That was the

1393
01:08:26,520 --> 01:08:28,720
Speaker 15: biggest story in the world a month ago of all

1394
01:08:28,760 --> 01:08:29,799
Speaker 15: obsessed with the death ceiling.

1395
01:08:29,880 --> 01:08:32,439
Speaker 16: Now, well, it'll be back in the headlines next week though,

1396
01:08:32,439 --> 01:08:34,960
Speaker 16: because you got those former executives of failed banks and

1397
01:08:35,120 --> 01:08:37,519
Speaker 16: regulators also getting set to testify on that.

1398
01:08:37,600 --> 01:08:40,960
Speaker 15: Absolutely another great reason to not miss Wall Street week

1399
01:08:41,000 --> 01:08:44,360
Speaker 15: on Bloomberg TV and Radio with our good friend David Weston.

1400
01:08:44,360 --> 01:08:46,080
Speaker 15: It's always a pleasure David and I hope you have

1401
01:08:46,120 --> 01:08:52,759
Speaker 15: a great weekend. Thanks for listening to the sound On podcast.

1402
01:08:52,880 --> 01:08:55,360
Speaker 15: Make sure to subscribe if you haven't already, at Apple,

1403
01:08:55,439 --> 01:08:58,320
Speaker 15: Spotify and anywhere else you get your podcasts, and you

1404
01:08:58,320 --> 01:09:01,040
Speaker 15: can find us live every weekday from Washington, d C.

1405
01:09:01,200 --> 01:09:05,520
Speaker 15: At one p m. Eastern Time at Bloomberg dot com.