WEBVTT - Bloomberg Businessweek Weekend - January 7th, 2022 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news. As it happened, Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.400 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.520 --> 0:00:24.079 edition of Bloomberg Business Week. This past week saw the 0:00:24.079 --> 0:00:27.080 tech sector get rocked as the Federal Reserve signaled interest 0:00:27.160 --> 0:00:29.880 rate hikes sooner than many of us expect it. The 0:00:29.960 --> 0:00:32.520 minutes from the f o MC's latest policy meeting added 0:00:32.560 --> 0:00:34.800 fuel to one of the most intense selloffs since the 0:00:34.800 --> 0:00:37.400 financial crisis, as the Central Brank tries to get a 0:00:37.400 --> 0:00:40.199 grip on inflation. Coming up, we'll explore what policymakers can 0:00:40.240 --> 0:00:42.440 do to help more people effectively compete in a fast 0:00:42.479 --> 0:00:45.040 changing economy. Will do that with Glenn Hubbard. He's dit 0:00:45.120 --> 0:00:47.760 emeritus of the Columbia Business School, and for some insight 0:00:47.800 --> 0:00:50.159 into how to better manage your personal finances with more 0:00:50.200 --> 0:00:53.400 investing options than ever before, we speak to Boston University 0:00:53.440 --> 0:00:56.920 Professor of economics Larry Kotlikoff. He unveils his secrets to 0:00:57.000 --> 0:01:01.360 creating quote money magic, turning up side down conventions when 0:01:01.400 --> 0:01:04.360 it comes to finances and how to manage them. Hey, 0:01:04.400 --> 0:01:06.679 and also a self made executive who was looking to 0:01:06.720 --> 0:01:10.600 capitalize on the cutting edge of the metaverse technology for 0:01:10.640 --> 0:01:13.040 her clients. We're gonna check in with Elite World Group 0:01:13.080 --> 0:01:15.959 CEO Julia hartbreaking down the next wave of monetization in 0:01:16.000 --> 0:01:18.520 the digital world. All that and more to come. We begin, though, 0:01:18.520 --> 0:01:20.640 with a look at this week's issue of the magazine. 0:01:20.840 --> 0:01:23.280 Let's welcome in the editor of Bloomberg Business Week magazine. 0:01:23.319 --> 0:01:25.280 It's Joel Weber. Hey, Joe. We're gonna get into the 0:01:25.280 --> 0:01:27.200 story in depth just a little bit later on. We 0:01:27.240 --> 0:01:30.440 got to talk about the cover here. Jessica Simpson. How 0:01:30.480 --> 0:01:32.880 did she end up being on this week's cover of 0:01:32.920 --> 0:01:36.240 Bloomberg Business Week. Well, this is a story that we've 0:01:36.280 --> 0:01:40.920 been interested in for a while because we found out that, uh, 0:01:41.040 --> 0:01:45.720 she had this huge, massive fashion empire, billion dollar fashion empire, 0:01:46.240 --> 0:01:50.440 and had basically given her name over um and then 0:01:50.520 --> 0:01:53.640 everything kind of went awry and she found herself in 0:01:53.720 --> 0:01:57.280 December actually going to bankruptcy court to like basically buy 0:01:57.320 --> 0:02:00.560 back her name. As this is ended up being a 0:02:00.600 --> 0:02:03.880 little bit of a comeback story. UM. Everybody remembers her 0:02:03.960 --> 0:02:07.920 from the Newlyweds and from her pop star days. UM, 0:02:07.960 --> 0:02:10.400 but the business side of that UM is just a 0:02:10.520 --> 0:02:14.760 fascinating story. And now she's basically taken back the taking 0:02:14.800 --> 0:02:16.960 back the reins of her name and the company and 0:02:17.160 --> 0:02:20.399 actually trying to to basically like start over again. Yeah, 0:02:20.400 --> 0:02:22.240 and that's that's interesting. I feel like it really was 0:02:22.720 --> 0:02:25.720 almost a business school case study and really learning about 0:02:26.080 --> 0:02:29.799 you know, a brand, licensing the different players and how 0:02:29.800 --> 0:02:31.919 it can go right, but then how it can also 0:02:31.960 --> 0:02:34.200 go wrong. And that's really what this gets into, and 0:02:34.320 --> 0:02:37.520 really just the specific players in it. Yeah, that's right, 0:02:37.600 --> 0:02:40.080 and and you know it's like everything was with the 0:02:40.160 --> 0:02:43.560 best intentions, and then you know, reality steps in and 0:02:44.040 --> 0:02:47.200 you know, the partners that UM you had and had 0:02:47.240 --> 0:02:50.600 a great relationship with, you know, basically dies and you're 0:02:50.680 --> 0:02:53.360 you're left with the aftermath of that, UM and so 0:02:53.400 --> 0:02:56.000 what do you do? UM? And the story opens us 0:02:56.040 --> 0:02:59.640 with this incredible scene of her basically giving giving birth 0:02:59.720 --> 0:03:02.680 and trying to figure out how to manage our business 0:03:02.720 --> 0:03:05.320 affairs at the same time. UM. So it's a really 0:03:05.320 --> 0:03:07.520 powerful one. And when that UM, we were we were 0:03:07.560 --> 0:03:09.320 thrilled to do on the cover. So the cover story 0:03:09.400 --> 0:03:11.560 Joel is it's all about a very famous woman, but 0:03:11.720 --> 0:03:13.640 another one of the great features this week, it's about 0:03:13.639 --> 0:03:15.520 a much larger group of women that make up a 0:03:15.560 --> 0:03:19.399 key demographic in developing countries that were especially hard hit 0:03:19.560 --> 0:03:24.080 by COVID's impact. It's it's called the Lost Girls of COVID. 0:03:24.480 --> 0:03:26.680 What do we need to know? This is just a 0:03:26.680 --> 0:03:30.800 remarkable story by by Joe Philip avic Um that that 0:03:31.240 --> 0:03:34.680 again we were we're just totally blown away by where 0:03:34.720 --> 0:03:38.680 the story took us. And look, the thesis here is 0:03:38.720 --> 0:03:42.160 that for the last twenty five years or so, we 0:03:42.240 --> 0:03:48.440 have seen extraordinary progress for girls around the world UM 0:03:48.560 --> 0:03:52.240 and and that has been just a major success story. 0:03:52.280 --> 0:03:57.280 As as girls have become educated and of access to healthcare, UM, 0:03:57.400 --> 0:04:01.880 we've seen them basically become economic engine throughout the developing world. 0:04:02.440 --> 0:04:06.680 What COVID does, UM has done, UM and is continuing 0:04:06.680 --> 0:04:10.480 to do, is actually undo a lot of those games. 0:04:10.840 --> 0:04:13.760 And the story takes us um Jill story takes us 0:04:14.240 --> 0:04:19.000 specifically to Kenya, but it also speaks to again what's 0:04:19.040 --> 0:04:22.440 happening throughout the developing world. UM where and in Jill 0:04:22.640 --> 0:04:26.320 Jill story we have UM, young women, UM, teenagers who 0:04:26.320 --> 0:04:30.039 basically no longer could go to go to to be educated, 0:04:30.600 --> 0:04:34.600 UM end up having to UM be young mothers, UM, 0:04:34.640 --> 0:04:38.600 which takes them out of the economic progress that they 0:04:38.600 --> 0:04:42.719 would have previously been able to experience. UM. That's a 0:04:42.760 --> 0:04:46.720 wrenching story, and it's just a little microcosm of of 0:04:46.839 --> 0:04:50.960 something that is being wrought around the world sort of 0:04:51.120 --> 0:04:55.599 invisibly right now, but we'll have massive implications in the 0:04:55.640 --> 0:04:57.880 coming decades. Got to say, what jumped out at me 0:04:58.040 --> 0:04:59.920 a reminder that you know, the whole idea of to 0:05:00.080 --> 0:05:03.200 laying pregnancy, it's a leading killer of young women in 0:05:03.240 --> 0:05:05.000 the developing world. I mean, there was one stat in 0:05:05.000 --> 0:05:08.799 their jol about team pregnancy rates in some Kenyan countries 0:05:08.880 --> 0:05:11.200 tripling in the first few months of the pandemic, and 0:05:11.200 --> 0:05:13.839 and some early numbers indicating the adolescent maternal deaths and 0:05:13.839 --> 0:05:16.880 still births increasing during that same period. Like things that 0:05:16.920 --> 0:05:20.520 maybe we take for granted in the developed world typically, UM, 0:05:20.960 --> 0:05:23.359 you know about not getting pregnant when you're a teenager, 0:05:23.720 --> 0:05:26.240 or you know, if you do give birth, you're not 0:05:26.279 --> 0:05:28.839 going to die typically from it. But you know, the 0:05:28.839 --> 0:05:35.120 developing world and the pandemic just exacerbating these problems. Yeah, 0:05:35.160 --> 0:05:38.839 and I think that just speaks to a fascinating um 0:05:39.000 --> 0:05:41.359 part of the story to me, which is, look like, 0:05:41.400 --> 0:05:44.479 there's clearly the health story that we can talk about 0:05:44.520 --> 0:05:46.560 all day long and have been for for going on 0:05:46.600 --> 0:05:49.479 two years now, but there's going to be the knock 0:05:49.520 --> 0:05:52.479 on effects, some of which we are beginning to understand 0:05:52.560 --> 0:05:54.880 now as the story shows, and then other ones that 0:05:54.880 --> 0:05:58.440 we're just not going to understand the legacy of something 0:05:58.480 --> 0:06:02.520 like the pandemic could and being completely different than anything 0:06:02.560 --> 0:06:05.160 that I have to do with with health help, like 0:06:05.520 --> 0:06:09.320 the specific health effects of COVID, as the story shows, 0:06:09.480 --> 0:06:13.159 And so it's just a fascinating one that we should 0:06:13.200 --> 0:06:16.080 be aware of and just recognize that there are a 0:06:16.279 --> 0:06:18.920 lot of nuances that are going to become a parent 0:06:19.760 --> 0:06:22.120 and this one just should be like I had no idea, 0:06:22.920 --> 0:06:25.839 but it's just heartbreaking, heartbreaking when you think about the 0:06:25.880 --> 0:06:28.520 progress that has been made in is that Jeopardy? No, 0:06:28.960 --> 0:06:31.480 Thank you so much. Bloomberg Business Week editor Joe weber 0:06:31.680 --> 0:06:34.600 Well coming up an economist guide to personal finance, Boston 0:06:34.720 --> 0:06:38.080 University professor and New York Times bestselling author Larry Katlakoff 0:06:38.160 --> 0:06:41.400 reveals his money Secrets. You're listening to Bloomberg Business Week. 0:06:41.560 --> 0:06:53.080 This is Bloomberg. This is Bloomberg Business Week with Carol 0:06:53.160 --> 0:06:57.359 Messer and Bloomberg Quick Takes Tim Spinovit from Bloomberg Radio. 0:06:58.920 --> 0:07:00.760 It's a new year. It's a time when we all 0:07:00.800 --> 0:07:02.760 make resolutions about a lot of stuff, right, Tim, I 0:07:02.760 --> 0:07:05.520 mean some we keep, some not so much. And if 0:07:05.520 --> 0:07:08.840 you've made a resolution involving a personal finance make over, 0:07:08.920 --> 0:07:11.080 our next guest is someone you'll want to hear from. 0:07:11.320 --> 0:07:14.320 Larry Kotlikoff is a Harvard trained economist, New York Times 0:07:14.360 --> 0:07:17.640 bestselling author, a Research Associate of the National Bureau of 0:07:17.680 --> 0:07:21.320 Economic Research, also a professor of economics at Boston University. 0:07:21.560 --> 0:07:23.880 And his new book, He's Got One Out. It came 0:07:23.880 --> 0:07:26.760 out this past week. It's called Money Magic and Economists 0:07:26.800 --> 0:07:29.400 Secrets to more money, less risk, and a better life. 0:07:29.440 --> 0:07:32.360 Some of what he says will definitely surprise you. So, 0:07:32.440 --> 0:07:34.160 what is the biggest thing that we're getting wrong when 0:07:34.200 --> 0:07:36.920 it comes to conventional wisdom when thinking about retirement. Well, 0:07:36.960 --> 0:07:39.120 there's so many things we're gotting wrong. We're not sending 0:07:39.120 --> 0:07:41.440 it up, We're not we're retiring to early. We're taking 0:07:41.440 --> 0:07:45.720 some street to early. We're we think we should get 0:07:45.720 --> 0:07:48.600 out of the stock market in old age, when economics 0:07:48.600 --> 0:07:52.320 actually says you should. As you're going through retirement, you 0:07:52.360 --> 0:07:54.200 should be putting a larger and larger share of your 0:07:54.760 --> 0:08:00.480 dwindling retirement assets fungible assets into stock. Tim and I 0:08:00.480 --> 0:08:02.320 were just talking about this. Remember when it used to 0:08:02.360 --> 0:08:04.280 be like your age minus and that would you know, 0:08:04.520 --> 0:08:06.440 figure out how much would be in fixed income versus 0:08:06.440 --> 0:08:10.880 the equity markets? Um, anyway, please continue? That's yeah, that's 0:08:10.880 --> 0:08:14.000 another one of the rules of dumb of the financial 0:08:14.080 --> 0:08:19.360 conventional financial planning, the the But we also need to 0:08:19.440 --> 0:08:21.600 understand that we should be timing the market for risk 0:08:21.680 --> 0:08:23.680 when things are riskier like they are right now. We 0:08:23.720 --> 0:08:26.560 don't know what, uh where the economy is going to 0:08:26.640 --> 0:08:31.200 be able to absorb all the illness from Macron, even 0:08:31.200 --> 0:08:34.120 though you know any one person may not be as 0:08:34.160 --> 0:08:37.480 likely to die. You know, that's more risk. So we 0:08:37.480 --> 0:08:40.000 should be cutting back on our stock holdings in times 0:08:40.000 --> 0:08:42.680 of risk. So that's actually what we see happening. When 0:08:42.679 --> 0:08:44.960 you sat down to write this book. Why did you 0:08:45.000 --> 0:08:47.880 want to do it specifically? Because you you really talk 0:08:47.960 --> 0:08:51.640 about when it comes to living standards and that these 0:08:51.679 --> 0:08:54.400 financial decisions that we can make can really impact our 0:08:54.720 --> 0:08:58.040 our living standards going forward. Yeah, well, street is focused 0:08:58.080 --> 0:09:01.880 on our wealth, and economists are focused on our welfare 0:09:02.040 --> 0:09:05.200 or welfare connects to what we get to spend in 0:09:05.320 --> 0:09:08.840 our living standard. And economists have been working on personal 0:09:08.840 --> 0:09:10.640 finance for a hundred years, starting with a work of 0:09:10.720 --> 0:09:15.360 Brving Fisher in the es the Yale professor um So, 0:09:15.679 --> 0:09:17.959 I got into grad school and economics because I wanted 0:09:17.960 --> 0:09:19.760 to help. I thought it could be a field that 0:09:19.800 --> 0:09:24.440 could help society, and I realized working a lot on 0:09:24.520 --> 0:09:28.960 personal financial financial issues, that what was being conveyed to 0:09:29.000 --> 0:09:33.280 the public as advice was complete right angles, completely at 0:09:33.280 --> 0:09:36.920 odds with what economics was recommending on every every in 0:09:37.000 --> 0:09:39.960 every area, whether how much to save, when to retire, 0:09:40.040 --> 0:09:42.040 when to take so security, how to think about your 0:09:42.040 --> 0:09:45.880 longevity risk, just completely across the board. It was all 0:09:45.960 --> 0:09:50.559 oriented towards product sales when it came from conventional planning economics. 0:09:50.800 --> 0:09:53.560 And then you had economists basically never talking to the 0:09:53.559 --> 0:09:58.000 public because uh, they didn't have what you know, a 0:09:58.040 --> 0:10:00.640 clear idea of what precisely to say, and they didn't 0:10:00.640 --> 0:10:03.440 think was their job to actually prescribe solutions. But I've 0:10:03.440 --> 0:10:06.680 been working in developing personal financial software. We have a 0:10:06.720 --> 0:10:10.199 tool called maxifi dot com m a x i fi 0:10:10.320 --> 0:10:13.200 dot com that I've been working on for thirty years, 0:10:13.200 --> 0:10:17.240 developing the software which does deliver the economics to the solution. 0:10:17.280 --> 0:10:19.800 I but you know, most people don't want to run software. 0:10:19.840 --> 0:10:22.080 So I said, let me take everything I've learned over 0:10:22.120 --> 0:10:26.160 the years from economists, from the software, from my own research, 0:10:26.240 --> 0:10:28.000 put it into this book. And that's where I'm coming 0:10:28.040 --> 0:10:31.840 from to help people. So I'm just at max I'm 0:10:31.880 --> 0:10:35.160 looking at the planner right now. It's it's it's really interesting, Larry. 0:10:35.400 --> 0:10:38.720 I'm I'm wondering, you know, how how people can put 0:10:38.760 --> 0:10:41.280 your lessons into practice. I mean, what's what's a practical 0:10:41.280 --> 0:10:43.439 way to think about the advice that you've learned over 0:10:43.480 --> 0:10:47.120 your career. Well, I mean the book. You know, if 0:10:47.120 --> 0:10:49.920 they bought the book, Uh, if they don't want to 0:10:49.960 --> 0:10:52.320 actually you know, run the software, they buy the book, 0:10:52.960 --> 0:10:55.840 the lessons from the software are you know, mostly in 0:10:55.840 --> 0:10:59.000 the book. Uh. So you know, if we're trying to 0:10:59.040 --> 0:11:01.040 figure out in economic because how to have a smooth 0:11:01.080 --> 0:11:04.520 living standard, how to raise your living standard safely, like 0:11:04.600 --> 0:11:07.360 doing smart things with respect to sousecurity and retirement accounts 0:11:07.360 --> 0:11:12.000 to lower your lifetime taxes. How the price decisions. If 0:11:12.040 --> 0:11:16.640 I'm thinking about buying a a new boat, how much 0:11:16.679 --> 0:11:18.719 is that going to cost me a big boat? Not 0:11:18.800 --> 0:11:21.439 a new boat, but a big, big boat. How much 0:11:21.440 --> 0:11:23.120 do you really going to cost me in terms of 0:11:23.160 --> 0:11:25.840 my ongoing living standards? So I need to understand that 0:11:25.920 --> 0:11:28.600 tradeoff in order to decide whether it's worth it to me. 0:11:29.320 --> 0:11:32.160 Uh So pricing risk, but also when it comes to investment, 0:11:32.240 --> 0:11:36.480 understanding the range of my living standard outcomes. Wall Street 0:11:36.559 --> 0:11:40.600 is focused on, Uh, you're saving what you're currently saving, 0:11:40.840 --> 0:11:43.400 You're spending some targeted amount that has no connection to 0:11:43.440 --> 0:11:47.600 what you're actually afford and and then accumulating this stuff 0:11:47.679 --> 0:11:50.920 up on the Monte Carlo simulation simulating whether or not 0:11:50.960 --> 0:11:53.280 you run out of money. But economics set is you're 0:11:53.280 --> 0:11:55.960 going to adjust. You're spending all the time, and so 0:11:56.000 --> 0:11:57.679 therefore we have to look at the trajectory of your 0:11:57.720 --> 0:11:59.599 living standard path. So tell us about some of the 0:11:59.640 --> 0:12:02.080 others and kings um that you get into your book 0:12:02.200 --> 0:12:05.920 and you talk about specifically, you know, you get into 0:12:05.920 --> 0:12:09.240 social Security, you talk about you know something that Tim 0:12:09.240 --> 0:12:10.640 and I have talked a lot about I just sent 0:12:10.880 --> 0:12:15.640 a daughter off to college. Um, and you know, higher education, 0:12:15.720 --> 0:12:19.880 especially from private institutions, it's really expensive. You're talking seventy 0:12:19.960 --> 0:12:23.440 eight dollars a year. Yeah, yeah, And I say, you know, 0:12:23.440 --> 0:12:26.160 I have a chapter entitled don't borrow for college. Uh, 0:12:26.200 --> 0:12:29.240 there's a chapter on you know, married for money. There's 0:12:29.240 --> 0:12:32.560 a chapter title about divorce like and I basically you 0:12:32.559 --> 0:12:35.640 know how a divorce without going to divorce war. So 0:12:35.920 --> 0:12:39.719 the book really covers the entire gamut of personal financial decisions. 0:12:40.360 --> 0:12:43.720 As for college, you know, there's evidence that going to 0:12:43.880 --> 0:12:48.360 Harvard relative to some other university is uh not gonna 0:12:48.920 --> 0:12:53.400 matter much to your career earnings because it's how hard, 0:12:53.600 --> 0:12:56.280 how well you you work, and how diligently and how 0:12:56.320 --> 0:12:59.880 creative you are. I mean, Harvard collects really uh you know, 0:13:00.080 --> 0:13:03.560 special people who are very good at working very hard 0:13:03.960 --> 0:13:07.560 and also our you know, talented in other ways. But 0:13:07.640 --> 0:13:10.520 it doesn't necessarily add any value to them. So why 0:13:10.520 --> 0:13:13.680 should you pay for you know, seventy tho dollars a 0:13:13.760 --> 0:13:16.880 year when you can you know, have the same career 0:13:17.000 --> 0:13:18.720 if you go to Wake Forest that will make much 0:13:18.760 --> 0:13:21.040 lower price. I'm not sure to Wake Forest is cheaper actually, 0:13:21.040 --> 0:13:24.440 so I'm just starting that. But that's the idea. Let's 0:13:24.480 --> 0:13:28.520 chop around for a school that's affordable. The kids that 0:13:28.640 --> 0:13:31.760 go to college never end, never finished. So if you 0:13:31.880 --> 0:13:34.720 borrow for the luxury of dropping out of college, this 0:13:34.840 --> 0:13:37.720 is crazy. Who invests? Who bars money to invest in 0:13:37.800 --> 0:13:41.079 something where they know right as the tiko chance of 0:13:41.120 --> 0:13:45.520 getting nothing. That's why there's a chapter called don't borrow 0:13:45.559 --> 0:13:50.760 for college. It's very strong, uh strong language worrying people 0:13:50.760 --> 0:13:53.120 off from this. That would be you. Professor of economics 0:13:53.200 --> 0:13:56.559 Larry Kotlikoff his new book Money Magic and Economist Secrets 0:13:56.600 --> 0:13:59.320 to More Money, less risk, and a better life. It's 0:13:59.320 --> 0:14:01.679 out now the way later on something perhaps to help 0:14:01.679 --> 0:14:04.440 you with your new year's weight loss and fitness resolutions, 0:14:04.440 --> 0:14:06.839 we're gonna check in on the app Strava and in 0:14:06.920 --> 0:14:09.960 keeping with that, still ahead on Bloomberg Business Week, Prescription 0:14:10.040 --> 0:14:13.040 weight loss drugs are working, so why is it so 0:14:13.080 --> 0:14:15.040 hard to get your hands on them? The story behind 0:14:15.080 --> 0:14:18.880 effective medicines that most doctors well they're not prescribing and 0:14:18.920 --> 0:14:35.200 insurers aren't covering. This is Bloomberg broadcasting from the financial 0:14:35.240 --> 0:14:38.760 capital of the world, Bloomberg eleven Frio in New York 0:14:38.880 --> 0:14:43.040 to Washington, d C. Bloomberg to Boston, Bloomberg one, O 0:14:43.240 --> 0:14:46.280 six one to San Francisco, Bloomberg nine six to the 0:14:46.320 --> 0:14:50.000 country Sirius XM Chamber one and around the globe the 0:14:50.000 --> 0:14:54.120 Bloomberg Business at and Bloomberg Radio dot Com. This is 0:14:54.160 --> 0:14:58.160 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:14:58.200 --> 0:15:03.760 Tim Stenovan on bloom Bird Radio. Obesity. It's a disease, 0:15:03.840 --> 0:15:06.480 and there are definitely ways to fight it, including prescription 0:15:06.560 --> 0:15:09.600 drugs that work. The problem is most doctors are not 0:15:09.720 --> 0:15:12.960 prescribing them, and insurers they're not footing the bills. We're 0:15:12.960 --> 0:15:15.400 talking about g LP ones and and to help us 0:15:15.480 --> 0:15:18.200 understand what exactly they do, what they are, and why 0:15:18.200 --> 0:15:21.720 they're important, we're joined by Bloomberg News healthcare reporter Emma Court. 0:15:22.040 --> 0:15:24.040 She wrote the piece. She joined us along with the 0:15:24.120 --> 0:15:27.840 editor of Bloomberg Business Week, Joel Weber. Doctors have the 0:15:27.960 --> 0:15:31.280 stigma around it. It's like it's still in their mind. 0:15:31.400 --> 0:15:35.520 Can be a behavioral problem that science can't necessarily solve. 0:15:36.360 --> 0:15:38.920 Insurance on top of that, looks at this new class 0:15:38.920 --> 0:15:42.920 of drug and they're not necessarily throwing money at it. 0:15:43.520 --> 0:15:46.440 All of which, you know, kind of leaves this solution 0:15:47.360 --> 0:15:50.720 to a big problem someone on the shelf. But but 0:15:50.760 --> 0:15:52.200 now I'm talking on the turn, and I want to 0:15:52.200 --> 0:15:55.320 hear more from ms Emma, Uh what what what out 0:15:55.320 --> 0:15:57.840 of this story coming to being and and how what 0:15:57.920 --> 0:16:00.280 kind of potential does this class of drugs really have. 0:16:01.040 --> 0:16:04.640 The piece started, there were a couple of early threads, 0:16:04.680 --> 0:16:07.680 but I started hearing about some startups that we're trying 0:16:07.720 --> 0:16:11.080 to treat obesity and and help people with weight loss 0:16:11.120 --> 0:16:15.160 using medication and telemedicine, so these like virtual doctors visits, 0:16:15.160 --> 0:16:17.480 and I thought it was sort of an interesting approach, 0:16:17.520 --> 0:16:21.040 and at the same time with hearing about pharmaceutical companies 0:16:21.120 --> 0:16:25.200 trying to develop better obesity drugs and um, you know, 0:16:25.240 --> 0:16:27.040 as I learned more about the space, I just kept 0:16:27.040 --> 0:16:29.440 coming back to this point of like, you know, even 0:16:29.600 --> 0:16:32.760 previous to these GLP one drugs that are starting to 0:16:32.880 --> 0:16:37.080 be developed for weight loss and obesity specifically, they would 0:16:37.240 --> 0:16:41.920 previously been used in diabetes, there have been prescription drugs 0:16:41.920 --> 0:16:45.400 that can help people lose weight that are rarely used. Um, 0:16:45.480 --> 0:16:47.600 you know, and this is going back several years, and 0:16:47.840 --> 0:16:50.920 there's a lot of different complicated reasons for that, But 0:16:51.200 --> 0:16:54.280 I kept kind of just being struck by the discrepancy 0:16:54.360 --> 0:16:58.000 between the fact that you know, many people are are 0:16:58.040 --> 0:17:00.680 obese or overweight UM in the US, you know, hundreds 0:17:00.680 --> 0:17:04.640 of millions of people, UM. And yet people are consistently 0:17:04.640 --> 0:17:07.640 being told to diet, to exercise, and they're not being 0:17:07.680 --> 0:17:11.520 told about the other option that's available for them. All right, Emma. 0:17:11.600 --> 0:17:14.360 The thing I find like crazy, like blows my mind 0:17:14.400 --> 0:17:16.200 a little bit is, and you write this, the biggest 0:17:16.240 --> 0:17:18.399 constraint and weight loss drugs remains buy in from the 0:17:18.400 --> 0:17:22.679 broader medical industry. How can doctors who potentially see this 0:17:22.760 --> 0:17:24.840 as something that could really like prescribing one of these 0:17:24.920 --> 0:17:28.280 drugs help one of their obese patients. How how are 0:17:28.320 --> 0:17:33.359 they allowed, you know, as a doctor, not to prescribe it. 0:17:33.720 --> 0:17:36.560 That's a really good question, Carol. And I think you know, 0:17:36.720 --> 0:17:39.399 quote a doctor, an obesity doctor and the story who 0:17:39.480 --> 0:17:43.159 says sort of, you know, if you treated diabetes or 0:17:43.240 --> 0:17:46.080 hypertension in this way, like you know, a doctor would 0:17:46.119 --> 0:17:49.159 lose their their medical license. I mean, it's kind of 0:17:49.160 --> 0:17:53.200 remarkable that, you know, we're very comfortable prescribing and by way, 0:17:53.240 --> 0:17:56.639 I mean, doctor is prescribing medications for so many different 0:17:56.720 --> 0:17:59.399 kinds of medical conditions, and I think a lot of 0:17:59.440 --> 0:18:01.840 this helps to do with the way obesity has previously 0:18:01.920 --> 0:18:04.720 been seen. Right, people think of obesity or or being 0:18:05.200 --> 0:18:08.199 overweight as really being a something that you kind of 0:18:08.200 --> 0:18:10.280 did to yourself, right, And we kind of get into 0:18:10.320 --> 0:18:12.800 this more in the piece. But you didn't work hard 0:18:12.920 --> 0:18:16.120 enough to lose weight, right, this is your fault, um 0:18:16.480 --> 0:18:19.400 and um. As a result, this is treated as as 0:18:19.400 --> 0:18:22.239 a lifestyle condition. If you're eating too much, you're not 0:18:22.400 --> 0:18:27.080 active enough, um. And there's some more complicated science that's 0:18:27.119 --> 0:18:29.879 come out in the last several decades that shows that 0:18:30.000 --> 0:18:33.440 our bodies really do have a big influence over how 0:18:33.520 --> 0:18:35.920 we you know, when we stop eating, you know when 0:18:35.920 --> 0:18:39.440 we're hungry, when we feel satisfied after we eat, and 0:18:39.440 --> 0:18:42.840 and that there's more biologically going on than merely sort 0:18:42.880 --> 0:18:45.920 of you know, refraining from getting on the treadmill every day, 0:18:45.920 --> 0:18:48.280 which is what I think a lot of people unfortunately 0:18:48.320 --> 0:18:51.400 still think, and even even doctors and certainly people who 0:18:51.440 --> 0:18:53.600 struggle with their weight themselves. Well, I'm just gonna make 0:18:53.600 --> 0:18:55.159 one comment because I know Tim has question, but I'm 0:18:55.160 --> 0:18:58.080 just gonna I wrote a note being obese is big business. 0:18:58.200 --> 0:19:01.440 And it supports a lot that's out there anyway. That's 0:19:01.440 --> 0:19:03.600 my that's my opinion piece. It doesn't. It's a good 0:19:03.600 --> 0:19:04.760 I mean, it's a good thing for us to be 0:19:04.800 --> 0:19:07.080 thinking about on in the new year, when a lot 0:19:07.119 --> 0:19:09.960 of people have different fitness goals and weight loss goals 0:19:10.000 --> 0:19:11.920 that are associated with the new year. I want to 0:19:11.960 --> 0:19:13.800 talk a little bit more about that m and and 0:19:14.240 --> 0:19:16.440 obesity because I was I was I'm always shocked to 0:19:16.440 --> 0:19:19.840 see these statistics about you know, how many Americans are 0:19:19.840 --> 0:19:23.600 are obese or overweight three and four and estimated two 0:19:24.600 --> 0:19:26.840 million people. Can you talk a little bit though about 0:19:26.880 --> 0:19:29.720 comorbidities here and the dangers of being overweight. They've come 0:19:29.760 --> 0:19:32.119 to the to the to the surface a lot when 0:19:32.200 --> 0:19:34.879 in discussions of COVID. But but beyond that, the big 0:19:35.000 --> 0:19:38.680 kind of concern about having excess weight is obviously that's 0:19:38.720 --> 0:19:42.920 defined by the body mass index UH standard. Right, So 0:19:43.280 --> 0:19:47.879 people who are um obese are at higher risk of 0:19:48.000 --> 0:19:56.200 developing various um medical conditions, including um diabetes. Another respects 0:19:56.200 --> 0:19:59.840 tied to obesity is actually all cause mortality, so literally 0:20:00.240 --> 0:20:03.719 death by any call. That was Bloomberg News healthcare reporter 0:20:03.800 --> 0:20:06.680 Emma Cord find more stories from the current issue of 0:20:06.680 --> 0:20:10.080 Bloomberg Business Week magazine. It's online at business week dot Com, 0:20:10.080 --> 0:20:13.800 on the Bloomberg terminal, and also on newsstands. She, by 0:20:13.800 --> 0:20:16.400 the way, wrote the piece. Bloomberg Business Week editor Joe 0:20:16.440 --> 0:20:19.040 Webber joined us for that conversation as well. You're listening 0:20:19.040 --> 0:20:22.119 to Bloomberg business Week coming up next. At an uncertain 0:20:22.160 --> 0:20:25.760 moment for the global economy, our next guest says that policymakers, well, 0:20:26.000 --> 0:20:28.600 they need to be bold. He has some specific ideas 0:20:28.640 --> 0:20:31.320 later on to pop star Jessica Simpson's bold move to 0:20:31.359 --> 0:20:34.760 reclaim her company and her own name. It's a great story. 0:20:35.000 --> 0:20:45.280 This is Bloomberg. You're listening to Bloomberg Business Week with 0:20:45.359 --> 0:20:49.960 Carol Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. 0:20:51.400 --> 0:20:53.880 This week, we got the minutes from the Federal Reserve's 0:20:54.000 --> 0:20:57.560 last meeting of one. Those minutes indicating the Central Bank 0:20:57.640 --> 0:21:00.440 is ready to speed up the timeline for raising entry straits. 0:21:00.760 --> 0:21:02.560 Our next guest thinks the f O m C has 0:21:02.600 --> 0:21:05.600 been a little bit slow with its policy decisions of 0:21:05.680 --> 0:21:08.760 late Glenn Hubbard is dean emeritus and professor of Finance 0:21:08.800 --> 0:21:11.960 and Economics at Columbia Business School. He's also the former 0:21:12.080 --> 0:21:14.840 chairman of the U S Council of Economic Advisors. He 0:21:14.920 --> 0:21:17.399 was that under President George W. Bush. He was Dean 0:21:17.440 --> 0:21:19.040 when you were at the Columbia Business School, he was. 0:21:19.040 --> 0:21:20.639 That's why I still have to call him Dean Hubbard. 0:21:20.680 --> 0:21:22.280 I just you know, it's it's what I called him then, 0:21:22.320 --> 0:21:24.600 and we'll call him forever. Probably it makes a lot 0:21:24.600 --> 0:21:26.480 of sense. By the way, to be fair, we caught 0:21:26.520 --> 0:21:28.680 up with him earlier in the week that was before 0:21:28.760 --> 0:21:31.760 those f O m C meeting minutes came out and 0:21:31.800 --> 0:21:35.040 really rocked the financial markets. We had him on the 0:21:35.200 --> 0:21:37.360 to talk about his new book. That book is out 0:21:37.440 --> 0:21:39.919 later this month. It is called The Wall and the Bridge, 0:21:39.960 --> 0:21:43.200 Fear and Opportunity and Disruptions Wake in a Dean Hubbard 0:21:43.280 --> 0:21:46.560 lays at a path to a brighter economic future. It 0:21:46.600 --> 0:21:49.119 all begins with the need for sound decisions in the 0:21:49.200 --> 0:21:53.280 near term. The inflation concerns I think are real. I 0:21:53.359 --> 0:21:56.800