Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Single best idea on
Speaker 1: the night, the evening, the pageantry of the State of
Speaker 1: the Union. We're going to get to Professor Schiller, Wendy Schiller,
Speaker 1: Brown University down the line. This is where we give
Speaker 1: you two thoughts from our show. Today's show is wildly eclectic.
Speaker 1: We talked about ESG and the new ESG, the challenges there,
Speaker 1: to say the least. We had a wonderful discussion on leverage.
Speaker 1: How much leverage do you have into in video? Over
Speaker 1: nine hundred dollars a share. But and again this is
Speaker 1: the do you give you a vignette here into how
Speaker 1: we act? I have no control purposely over the guests
Speaker 1: we get. I will say to people, you know, all
Speaker 1: this guests really didn't fit, or that one didn't fit.
Speaker 1: But basically, Bob Bragg and our team put the entire
Speaker 1: show together without talking to me. And what that usually
Speaker 1: means is I get really wonderful surprises. I got a
Speaker 1: wonderful surprise at eight fifty five this morning, we're in
Speaker 1: five minutes. We had Christopher Whalen come on. He has
Speaker 1: the definitive one volume on American financial history Inflated. He
Speaker 1: announced on the show. He's in rewrite out at a
Speaker 1: substantial rewrite, but he's wonderful. On analysis of the banking system,
Speaker 1: we talked about SVB in the spring. I guess a
Speaker 1: year ago. Now we have NYCB in New York really
Speaker 1: troubled the former Treasury secretary coming in yesterday with a
Speaker 1: billion Whalen and I agree that seems like an awful
Speaker 1: small amount of money. But what we really did with
Speaker 1: Chris Whalen is we talked about, Okay, we're here, where
Speaker 1: are we going within the banking system?
Speaker 2: So I think your dad, there were a lot of
Speaker 2: models that grew over the last ten years, really since
Speaker 2: two thousand and eight that don't work at and particularly
Speaker 2: the change in the valuation of urban commercial and urban
Speaker 2: multi family real estate. It's episodic. You know, I raided
Speaker 2: many of the banks in New York Tom when I
Speaker 2: was picked Corole. These portfolios had to see any appreciable
Speaker 2: credit loss in seventy five, one hundred years, and they
Speaker 2: were always fully let. These buildings today we're talking about
Speaker 2: are fully lit the cash flow, but you can't sell them.
Speaker 2: The value has been cutting half.
Speaker 1: There's a window into where we are with the NYCB,
Speaker 1: and what we're talking about there is the marketing concepts
Speaker 1: where SVB was going after for reduced fees, people with
Speaker 1: a lot of money to sit there where they could
Speaker 1: make money on the lead brick of money in their portfolio.
Speaker 1: And NYCB had to do with the vicissitudes of the
Speaker 1: New York City rental market and all that and where
Speaker 1: we go from here. It was really interesting. Chris, there's
Speaker 1: some real vulnerabilities out there. He seems to be dead
Speaker 1: on that. We'll have to follow this very closely into
Speaker 1: next year. And of course we'll do this with Banker,
Speaker 1: and he's coming out. I actually looked already. It's not
Speaker 1: upon us, but out one month. JP Morgan on April twelfth.
Speaker 1: We're out on Apple car Play. We're on YouTube live.
Speaker 1: A lot of confusion there. It's just simple, go to
Speaker 1: YouTube and this is live seven to ten Wall Street time.
Speaker 1: You type in Bloomberg Podcasts and you go there and
Speaker 1: it says surveillance this that, and you can get a
Speaker 1: wonderful live feed of Paul Sweeney, as handsome as he is.
Speaker 1: It is single best idea. Thank you so much for
Speaker 1: tuning in. It's an experiment, it's a work in progress,
Speaker 1: to say the least. We are listening to Chris Wayland
Speaker 1: talking about banking systems, the troubles that are out there
Speaker 1: specifically for NYCB, and the rescue I guess I'll call
Speaker 1: it a rescue in the last twenty four hours. The
Speaker 1: rescue tonight is for President Biden. He has to come
Speaker 1: out with all the politics of his party and of
Speaker 1: this nation and do the pageantry that from our childhood
Speaker 1: we all adore. A little bit of history here George
Speaker 1: Washington had an annual address in seventeen ninety and then
Speaker 1: on you go with all different permutations of a State
Speaker 1: of the Union. It became somewhat codified with FDR and
Speaker 1: radio Harry Truman, I believe was the first televised State
Speaker 1: of the Union that was before my time. Wise guys
Speaker 1: out there, and then on we go to the pageantry
Speaker 1: and then the amazing television football that we have now.
Speaker 1: Of course we'll have complete coverage with Joe Matthew and
Speaker 1: Kaylee Lines with people not the usual back and forth politics,
Speaker 1: but people with some real depth about the pending Biden
Speaker 1: Trump battle. We went for depth, and we do that
Speaker 1: at Brown University with Wendy Schiller, her textbook is definitive
Speaker 1: in America as an introduction to high level civics. And
Speaker 1: she was fired up today, Wendy Schiller here on a
Speaker 1: fractious Democratic Party.
Speaker 3: I think the Biden missasion made a pretty significant flaw
Speaker 3: in their selling of their legislative program, the Inflation Reduction
Speaker 3: Act infrastructure. They didn't really really tie what they we're
Speaker 3: doing to how it's going to improve people's lives. And
Speaker 3: this is what Democrats do. They go big. They're successful,
Speaker 3: yet a lot of big things passed, and then they
Speaker 3: completely fail to selve properly. The Republicans cut taxes, raised deficits,
Speaker 3: and they are the magic party on the economy. This
Speaker 3: has been true for forty years. I mean, I don't
Speaker 3: know if there's a magic, you know, magic answer to this,
Speaker 3: but I think right now, telling people the economy is
Speaker 3: better than they think it is is not going to work.
Speaker 3: Showing people how the government has helped them in the
Speaker 3: face of a bad economy a couple of years ago.
Speaker 1: May one, Wendy Schiller, consultant to the Democratic Party. She
Speaker 1: said in the early nineteen eighties, and they said, Okay,
Speaker 1: that's enough of that. But her enthusiasm is really infectious.
Speaker 1: It's just like whatever your political persuasion, every time she
Speaker 1: is with us, the professor from around university makes us
Speaker 1: smarter about the political process. The goal of single best
Speaker 1: idea is not to make you smarter. I'm not going
Speaker 1: to do that for you. The goal is to take
Speaker 1: the treasured conversations we have an economics, finance investment on
Speaker 1: international relations and give you two little vignettes into what
Speaker 1: we've done today. An Apple CarPlay and YouTube lige on
Speaker 1: Bloomberg surveillance