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Speaker 1: Who you put your trust in matters. Investors have put

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Speaker 1: their trust in independent registered investment advisors to the tune

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Speaker 1: of four trillion dollars. Why learn more and find your

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Speaker 1: independent advisor dot com. Welcome to the Bloomberg Surveillance Podcast.

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Speaker 1: I'm Tom Keene with David Gura. Daily we bring you

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Speaker 1: insight from the best in economics, finance, investment, and international relations.

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Speaker 1: Find Bloomberg Surveillance on iTunes, SoundCloud, Bloomberg dot com, and

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Speaker 1: of course, on the Bloomberg. I want to bring in

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Speaker 1: John burn Burns now he's founderancy of John Burns Real

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Speaker 1: Estate Consulting. Just thirty six hours here after Donald Trump

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Speaker 1: was a declared president, lacked a lot of uncertainty about

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Speaker 1: what the eCOM he's gonna look like him in charge

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Speaker 1: of it, and John Burns here to talk with us

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Speaker 1: about housing policy in particularly, just remind us you're kidding

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Speaker 1: me housing policy. This is John Burns, Folks of Irvine, California.

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Speaker 1: John Burns is only one question the morning. Will your

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Speaker 1: state secede from the nation. I think there's a couple

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Speaker 1: of states that might want to go, Tom, what what?

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Speaker 1: What do the for sale signs look like? I mean

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Speaker 1: I'm sure you have all have done analysis of this

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Speaker 1: in the last thirty six hours. Yeah, we just had

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Speaker 1: just growth it for sales science, not not yet. We

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Speaker 1: we just happened to have our We happen to have

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Speaker 1: our annual conference yesterday here in New York. So we

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Speaker 1: we debated this, and it's a mixed science. I think

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Speaker 1: we're gonna the immigration policy, if it changes, is gonna

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Speaker 1: have some negative effects on from California to Canada. Well

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Speaker 1: I'm talking about yeah, from California to Canada. Uh, people

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Speaker 1: don't realize the immigrants here have been more affluent than

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Speaker 1: the rhetoric has been, and they've been big home buyers

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Speaker 1: here in New York and in Californi and particularly prefer

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Speaker 1: new homes. So there'll be there may be a hit

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Speaker 1: to demand somewhat, yes, and then on the cost side, clearly,

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Speaker 1: we already have a labor shortage, so anything that restricts

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Speaker 1: labor from coming in here to build homes is going

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Speaker 1: to hurt even more. What what can the president do

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Speaker 1: to influence housing policy? What what what kind of responsibly

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Speaker 1: does he have there to shape housing policy? So so,

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Speaker 1: for the first time ever, the presidented States completely controls

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Speaker 1: mortgage policy. In my opinion, they appoint hud there's a

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Speaker 1: cabinet position which oversees f h A. Uh Cordrey is

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Speaker 1: up the CFPP and two thousand and eighteen, he gets

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Speaker 1: to appoint that the f h f A, which regulates

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Speaker 1: Fanny and Freddy mel wats up in two thousand and

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Speaker 1: nineteen if he'll even stick around that long. Um, those

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Speaker 1: guys all set mortgage policy, and they're all appointed by

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Speaker 1: the president. Have we heard much from President Electrump about

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Speaker 1: about housing? About me? He is a real estate magnet.

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Speaker 1: Has he talked much about how he intends to shape policy? Neither?

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Speaker 1: Candida talked very much. He did give a presentation to

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Speaker 1: the National Association of Homebuilders a couple of months ago,

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Speaker 1: and he said all the right things to get elected,

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Speaker 1: you know. So what's really going to happen here? We

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Speaker 1: we really don't know. He is from home building, so

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Speaker 1: we know he does understand the industry. Is there a

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Speaker 1: bubble in any segments of real estate? Right now? We

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Speaker 1: spend all day John Burns talking about the distortions of

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Speaker 1: interest rates in the real phenomenal yield, How does that

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Speaker 1: transfer over into your world? So so there's no doubt

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Speaker 1: that the extended low interest rates have pushed prices up

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Speaker 1: beyond what I consider to be unsustainable levels over the

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Speaker 1: long term. But it's more significant here in Manhattan. Uh.

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Speaker 1: You know an interestingly, Billionaires Row is probably the one

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Speaker 1: where where prices are falling the most, and Trump Tower

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Speaker 1: happens to be on Billionaires Row. But you've got San Francisco, Seattle, Denver,

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Speaker 1: a few other tech markets that are a little overheated,

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Speaker 1: and I think there are some bubbles forming, there are

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Speaker 1: mini bubbles. You bring up Trumptown where we were joking earlier,

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Speaker 1: Bottle the security surrounding it, Does that stand to to

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Speaker 1: change the valuations in that neighborhood having this becoming as

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Speaker 1: John Tuck who was joking a few months ago white

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Speaker 1: House North Well, the prices were, values were already heading south.

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Speaker 1: I think most of the buyers in that building and

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Speaker 1: those buildings around there don't live there full time. You know,

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Speaker 1: these are billionaires. That's their second, third, or fourth or

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Speaker 1: fifth home, and it's a place to park cash. So

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Speaker 1: I don't know whether or not the security is a

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Speaker 1: big difference. John, You do brilliant work on the granularity

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Speaker 1: of this nation's real estate. If I ran into you

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Speaker 1: in the Denver Airport, what is the John Burns nugget

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Speaker 1: right now within your forties sixty power point. Yeah, the

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Speaker 1: the housing market is slowly recovering. The entry level buyers

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Speaker 1: are coming back, and I think now that we have

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Speaker 1: a little clarity, I think, um, it should continue to grow.

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Speaker 1: The big thing for housing, though, is the health of

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Speaker 1: the economy. And we're seven years in and I don't

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Speaker 1: know how we're going to go another four years without

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Speaker 1: a recession, no matter who got elected. So most of

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Speaker 1: my clients are pretty cautious over the next few years

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Speaker 1: and moving forward cautiously. Let me ask the arch question,

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Speaker 1: John Burns. I get it four times a weekend and

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Speaker 1: never have the right answer. You do rent? Or by

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Speaker 1: what say you rent this? We are clearly shifting towards

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Speaker 1: a rental economy. And it's not just young buyers. I'm

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Speaker 1: even seeing it are my staff is seeing it at

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Speaker 1: older homeowners selling their homes and moving into rent. And

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Speaker 1: you don't mean just New York and San Francis. You

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Speaker 1: don't mean just six zip codes. Well, I think it's

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Speaker 1: more significant in those zip codes, But you're talking about Topeka,

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Speaker 1: Kansas rent or by uh, neither, but we care come

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Speaker 1: on a great number of listener, let me rephrase this,

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Speaker 1: hold on, let me rephrase this right now, Lafayette, Indiana,

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Speaker 1: rent or by our executive producers. Great for you. So

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Speaker 1: you're so you're setting a trap for me. So that's

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Speaker 1: a great place to be a homeowner. But I think

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Speaker 1: the entire society is shifting slightly to more towards rentals.

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Speaker 1: And it's it's there's a lot of reasons behind tom.

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Speaker 1: We could be here all day, let's do that. They

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Speaker 1: would jump in here all day on rent or buy. Well,

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Speaker 1: you know, we were talking about what a president could

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Speaker 1: do here. Should the president be more concerned with affordability

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Speaker 1: and with availability of housing? When you look at at

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Speaker 1: what policy could do, are there things that the government

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Speaker 1: could be doing to to influence them? I think the

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Speaker 1: government has been trying a lot other than the CFPP.

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Speaker 1: That's made the mortgage documentation really tight, so that that

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Speaker 1: that's holding some things back. But we we actually people

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Speaker 1: don't realize this. The down payment requirements are the lowest ever,

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Speaker 1: more than half of all loans and putting less than

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Speaker 1: ten percent down. We have a three and a half

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Speaker 1: percent interest right what else do you want? Uh, the

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Speaker 1: f h A is is there to ensure everybody. Uh,

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Speaker 1: Fannie and Freddie is changing policy to now allow you

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Speaker 1: to rent out a room and count that towards qualifying

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Speaker 1: for a mortgage. That the mortgage policy has been pretty positive.

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Speaker 1: But there's other things that the government. Well, the economy matters,

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Speaker 1: confidence matters. Uh. I mentioned this last time I was

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Speaker 1: with Tom. The mortgage interest deduction is gone accidentally because

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Speaker 1: with a two hundred thousand our mortgage and a four

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Speaker 1: percent interest rate, you get eight grand in deductible interests,

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Speaker 1: but the standard deductions twelve thousand, six hundred. So the

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Speaker 1: tax incentive or into Apeka, Kansas and Lafayette, Indiana is

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Speaker 1: no longer. David, this is a huge wake up call

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Speaker 1: for people. They affect the transaction and on April tenth

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Speaker 1: they go, you're kidding huge too. I wonder if the

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Speaker 1: housing stock is keeping up with the trains the trend

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Speaker 1: that you're mentioning there that is. I wonder how easy

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Speaker 1: it is to find a place to rent in in Lafayett,

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Speaker 1: Indiana or Topeka, Kansas. Are we seeing the stock change

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Speaker 1: to reflect that trend toward renting? Oh? Absolutely, and in

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Speaker 1: fact that the stock is single family rental homes, which

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Speaker 1: are doing very well in Lafayette and Topeka and everywhere.

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Speaker 1: If you we now publicly traded companies, they're disclosing their

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Speaker 1: raising rents five percent per year. It's a great option

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Speaker 1: to get into a good school district. If I lose

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Speaker 1: my job next year, head I don't have a mortgage,

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Speaker 1: it's great option. I am. You know, I'm curious here

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Speaker 1: when you when you look at deficits in the housing sector,

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Speaker 1: when you look at the economic into it is what

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Speaker 1: stands out most to you? What's the what's the biggest

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Speaker 1: deficit still there, the biggest deficit, the biggest problem with

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Speaker 1: the housing housing economy right now? Um yeah, really there's

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Speaker 1: there's not a lot of problems. It's it's just recovering slow.

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Speaker 1: It's the it's the economic recovery. We have a collective

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Speaker 1: memory of multifamily housing. My collective memory, I guess the

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Speaker 1: one impact was being in Nashville, Tennessee a million years

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Speaker 1: ago and literally as far as the I could see,

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Speaker 1: there were condos. We talk about a housing shortage, and

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Speaker 1: clearly that's in the big cities, etcetera. But is it

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Speaker 1: good or bad? Or are we indifferent to the condo

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Speaker 1: boom that we remember from another time? Do we want that? No?

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Speaker 1: I don't think we want that. Although I think the

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Speaker 1: demand for that type of product is the highest ever,

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Speaker 1: we're probably overbuilding it. The the issue is construction costs.

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Speaker 1: We just can't build affordable condos. Tom, So you're you're

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Speaker 1: going after a slice of very affluent people that maybe

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Speaker 1: put that David's down policy prescription. How do we start

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Speaker 1: building your world without a granite countertop, without a kitchen

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Speaker 1: bigger than the how where David and I live? I mean,

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Speaker 1: I mean Tucker's got what do you got a three

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Speaker 1: room kitchen? How do New Jersey to fireplaces in the kitchen?

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Speaker 1: How do we get back John Burns seriously to building

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Speaker 1: middle class and poor housing? We're not there, are we?

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Speaker 1: So it's it's government regulation at the federal level and

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Speaker 1: at the local level. They're they're mandate. The school fees

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Speaker 1: are through the roof, the permits are through the roof.

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Speaker 1: You do the math and you're sixty seventy dollars in

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Speaker 1: and all you've got some land. So how can I

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Speaker 1: provide build a house and sell it for two hundred

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Speaker 1: thousand dollars with those type of fees and costs and

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Speaker 1: regulatory environment, I can't the building. You were talking earlier

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Speaker 1: about the drought in California. The builders have to sandbag

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Speaker 1: around every single house just in case it rain, so

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Speaker 1: no nails run off into the ocean. Okay, that's that's

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Speaker 1: good for the environment, But that that costs some thousands

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Speaker 1: of dollars per house. They can't sell a house affordably

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Speaker 1: when that type of regulations involved. What about existing humesh,

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Speaker 1: we're talking about billionaires Row here in Manhattan. We had

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Speaker 1: a guest on a few weeks back talking about Greenwich

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Speaker 1: and the stock of of of homes and grandch just

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Speaker 1: aren't selling. So looking at sort of the higher end

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Speaker 1: of of single family homes, what's going to happen with

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Speaker 1: with that marketplace? Okay, that's that's the super super super

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Speaker 1: super high end. And housing again is local, so tax

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Speaker 1: increases in in Connecticut hedge funds get assets being pulled

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Speaker 1: out of hedge funds. That kills Greenwich. But Greenwich and

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Speaker 1: Billionaire's row and are probably the two examples in the

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Speaker 1: country of high super high end that are falling dramatically.

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Speaker 1: They're the only two We talked about Lafayette, we talked

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Speaker 1: about Topeka. What are the places you're looking to? What

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Speaker 1: are the regions? Were the cities that have experienced a

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Speaker 1: lot of growth that you think will be experiencing more

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Speaker 1: growth coming from It's very simple. It's the South. It's Texas, uh,

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Speaker 1: it's Florida, it's Carolinas. Where can I buy a home

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Speaker 1: for two dollars, have a decent job. Those are low

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Speaker 1: increre areas that that's where the country has grown. In fact,

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Speaker 1: it's twice the growth rate in those states than then.

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Speaker 1: I want to circle back to David's original question to you.

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Speaker 1: I believe that geography put a new president in the office.

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Speaker 1: As he goes to the White House today to meet

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Speaker 1: with President Obama, what does Donald Trump need to do

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Speaker 1: to help that that core market get a better real

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Speaker 1: estate investment over five years, ten years, twenty years. What's

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Speaker 1: he need to do is a tax? You know, it's

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Speaker 1: it's the economy. It mean it really, it is the economy.

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Speaker 1: We need to get wage growth, we need to get

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Speaker 1: people saving. That's what's going to drive don't demand, it's

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Speaker 1: not tweaks to policy. John Burns, thank you so much.

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Speaker 1: John Burns, real estate. What a wonderful trick to have

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Speaker 1: you in here so close to the election as we

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Speaker 1: look at really what is one of the key investments, uh,

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Speaker 1: that we see. It has been a most interesting day.

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Speaker 1: We had the privilege of David Harrow, investor in Chicago,

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Speaker 1: on his Wisconsin. We did not know that David Harrow's

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Speaker 1: wisdom would be critical two the Trump victory. We look

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Speaker 1: at I'm gonna I'm gonna kill the pronunciations David Waukesha, Brown,

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Speaker 1: Walkershaw R. How to Gami Racine, Winnebago. I know that one,

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Speaker 1: Washington and Kenosha. These are counties across the state of Wisconsin.

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Speaker 1: David Harrow, what was the biggest surprises Wisconsin really made

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Speaker 1: a difference back Well, I think the magnitude was the surprise.

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Speaker 1: And again I just have to chuckle. I've always loved

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Speaker 1: statistics and analysts, analytics, uh. And I looked at the

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Speaker 1: poll numbers and there were a couple of polls that

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Speaker 1: had them close. But the magnitude of the of the

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Speaker 1: error in the polling. And same thing with the US

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Speaker 1: Senate race with Senator Johnson of just destroying senator former

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Speaker 1: Senator Fine Gold, and it was supposed to be a

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Speaker 1: close race, and a month ago he was down by

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Speaker 1: ten points. I mean, something is really wrong with the

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Speaker 1: way they're measuring opinion. And Wisconsin looked close, and I

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Speaker 1: heard from people up there that there was going to

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Speaker 1: be a strong get out the vote. But the magnitude

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Speaker 1: of the win in Wisconsin, UM, I think that was

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Speaker 1: the biggest surprise. With the magnitude, What do you think

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Speaker 1: what was was the factor at play there? I think

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Speaker 1: there'll be a long debate here over you know, whether

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Speaker 1: someone was underestimated, whether we underestimated the ground game, what

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Speaker 1: do you think, what do you think happened? I think, actually,

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Speaker 1: quite simply, there just wasn't the enthusiasm for sector at

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Speaker 1: Clinton as there was for for Mr Trump, And as

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Speaker 1: a result, the typical Democrats didn't go out and vote

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Speaker 1: because there were things about her perhaps they didn't like.

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Speaker 1: And even though died in the world, typical Republicans were

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Speaker 1: in love with Trump. Trump has a following, and I

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Speaker 1: guess we didn't know how big or how small it

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Speaker 1: was until Tuesday, but he has this following. And whereas

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Speaker 1: a lot of the Clinton supporters are just anti Trump people,

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Speaker 1: a lot of the Trump supporters were consistent of a

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Speaker 1: anti Clinton and B he had a strong pocket of support.

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Speaker 1: If we were talking a couple of days ago about

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Speaker 1: the rhetoric and how the rhetoric that Donald Trump used

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Speaker 1: on the campaign trailing Wisconsin resonated with voters, there now

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Speaker 1: comes the burden of expectations on Donald Trump's shoulders. He

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Speaker 1: spoke to these people, he promised them change. Are you

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Speaker 1: optimistic he's going to be able to deliver it? And

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Speaker 1: let's let's get down to policy. What does he need

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Speaker 1: to do to improve the situation at Wisconsin. Well, he

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Speaker 1: won't be able to improve everything that he said he's

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Speaker 1: going to do in the way he said, but he

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Speaker 1: hopefully can make things better. Not Wisconsin. Yeah, the unemployment

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Speaker 1: rate Wisconsin, I believe is four point one four point

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Speaker 1: two percent. It isn't doing so poorly, but again it

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Speaker 1: had been hit by this loss of manufacturing jobs. And

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Speaker 1: that's one of the things that is the loss of

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Speaker 1: manufacturing jobs. I think it's the political correctness and you

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Speaker 1: know this type of thing, it's that's kind of the

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Speaker 1: soft underbelly that has kind of upset and alerted people.

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Speaker 1: Is it just the manufacturing It's just this whole. You know,

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Speaker 1: everyone gets a trophy. You know, there's gender bathrooms, the

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Speaker 1: crime thing in Milwaukee. You know, you had a situation

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Speaker 1: where you had a black police officer shooting a black

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Speaker 1: man and there are rights for three or four days

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Speaker 1: and incident in the park. I used to pick again,

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Speaker 1: David Harrow. It is two miles from Speaker Ryan's abode,

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Speaker 1: just north of the Illinois border. And if you go

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Speaker 1: up to Green Bay, which I believe you've darkened the

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Speaker 1: door of a few times, and then you go further north.

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Speaker 1: This is about Trump. You go further north to Florence, Wisconsin.

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Speaker 1: They have two hundred and sixty five lakes, none of

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Speaker 1: which Donald Trump is fished. Done. Would you explain to

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Speaker 1: me how Florence County, Wisconsin, on the Canadian border went

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Speaker 1: large for a billionaire on Fifth Avenue in New York

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Speaker 1: because they were just hired of the political class and

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Speaker 1: the rhetoric, and they think that the people think that

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Speaker 1: um people are elected leaders don't understand them, they don't

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Speaker 1: represent them. And that was I think what Donald was

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Speaker 1: able to do was to convince these people that he

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Speaker 1: does understand them. And I think that that was part

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Speaker 1: of the phenomena around the country, and you saw it

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Speaker 1: in all these counties. I mean you see these maps

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Speaker 1: of you know, the red blue maps, and are actually

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Speaker 1: quite phenomenal of of the breasts outside of the metropolitan

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Speaker 1: areas of his support. Same thing with Iowa, by the way,

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Speaker 1: I mean, I think Iowa it could even be the

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Speaker 1: bigger surprise and the magnitude of the io O win.

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Speaker 1: Are you Are you worried here that if if the

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Speaker 1: conversation shifts under a President Trump to bringing back manufacturing jobs,

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Speaker 1: something will be lost in terms of keeping up with

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Speaker 1: where manufacturing is headed. We see such dramatic changes in

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Speaker 1: technology in terms of where things are headed. If the

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Speaker 1: focus is simply on getting jobs back, do we lose

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Speaker 1: ground on on technological development? Yeah? I don't think. You know,

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Speaker 1: I'm again of kind of a free market ilk and

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Speaker 1: I don't think you should try to manipulate policy in

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Speaker 1: such a way. I think what you should do is

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Speaker 1: make provide a fertile ground for businesses to thrive. And

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Speaker 1: really what's happened is we've done unders the opposite in

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Speaker 1: the last eight years. I'm not saying add anything. I'm saying,

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Speaker 1: don't add disincentives. Do not overregulate, Do not make regulation unclear.

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Speaker 1: Unclear regulation is very unuseful. And and you know this

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Speaker 1: is it breeds corruption. It breeds uh, you know, fule

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Speaker 1: in action. And I think if you have a clear

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Speaker 1: and transparent regulation, and if you try to do things,

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Speaker 1: do that make trade, for instance more even you have

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Speaker 1: to deal And I thought, I think, I thought we

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Speaker 1: kind of did a pretty good job dealing with people

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Speaker 1: who are afflicted by the negatives of trade agreements. And

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Speaker 1: maybe we didn't do enough, But I thought, didn't we

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Speaker 1: retrain workers? And there's big pots of money set aside

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Speaker 1: for these people. So I don't think we should stop

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Speaker 1: free trade. I think it's free trade is very important

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Speaker 1: and allowing it. But on the other hand, if someone

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Speaker 1: wants to set up a business, don't make it so

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Speaker 1: difficult for him up and maintain their business. Let's switch

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Speaker 1: to what matters, and it's not the Chicago cubs. It's

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Speaker 1: investment in your oak Mark International fund. With this, with

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Speaker 1: this regime, change if you will. With the higher rates

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Speaker 1: we've observed the last few days, with futures in the

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Speaker 1: market up four or five doll points, do you change

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Speaker 1: your international investment stands? And should our listeners add two

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Speaker 1: shares this morning. Well, here's what's happened until recently is

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Speaker 1: there has been a very dichotomous market. You've had certain

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Speaker 1: sectors consumer discretionary, financials, industrials way under priced, way under priced,

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Speaker 1: and then you had other sectors um utilities, healthcare, telecoms

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Speaker 1: to safe sectors, consumer staples way overpriced. So you had

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Speaker 1: a very dichotomous market in terms of valuation. And I'm

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Speaker 1: not saying they should be trading on top of each other.

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Speaker 1: Were saying multiples. But Diame Lard was at eight and

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Speaker 1: you know, Leavers at twenty two times Sarnings. That's just

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Speaker 1: too much. And I think what we're gonna see is

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Speaker 1: that's going to start to even out a little bit.

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Speaker 1: It won't be even, and it shouldn't be even. But

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Speaker 1: I think that you know, Diame Wars should trade at

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Speaker 1: ten or eleven and unit Leavers should trade at fifteen

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Speaker 1: or sixteen. It should be a fifty percent premium, not

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Speaker 1: a two three premium. I think that's what we're about

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Speaker 1: the scene. If that happens, it will be very good

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Speaker 1: for how we're positioned and our funds, because again, we're

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Speaker 1: value investors. We value businesses based on their ability to

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Speaker 1: generate cash flow and the durability that cash flow stream

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Speaker 1: UM and where we found value recently in the last

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Speaker 1: year or two, where perhaps others have not have been

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Speaker 1: in these sectors, the consumer discretionary and luxury good companies, etcetera,

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Speaker 1: financials industrials, and I think we're going to start to

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Speaker 1: see that valuation gap disappear. Now it will not and

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Speaker 1: it should not disappear completely, but it shouldn't be as

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Speaker 1: wide as it is today. David, we talk about uncertainty

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Speaker 1: capital You uncertainty. What part of that affects you most

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Speaker 1: as an investor? UM In the short term, regulatory and

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Speaker 1: political changes really move share prices around. I would argue

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Speaker 1: these things do not move the intrinsic value of the

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Speaker 1: businesses around because they often do not have a long

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Speaker 1: term impact on the company's ability to generate cash. And

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Speaker 1: what we have to do as investors to be able

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Speaker 1: to differentiate what truly impacts the company's cash flow stream

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Speaker 1: and what is just noise impacting this air price. But

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Speaker 1: it's a challenge because if we're holding something that's falling

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Speaker 1: in price dramatically because of a political pronouncement, you know,

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Speaker 1: we have a lot of explaining to do to our

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Speaker 1: clients and our shareholders and consultants. But you just have

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Speaker 1: to stay disciplined. And often I think investors don't, you know,

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Speaker 1: would rather take the easy route and not to explain

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Speaker 1: and just sell out. I think that's what differentiates good

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Speaker 1: investors from bad investors, what differentiates David Harrow's He's got

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Speaker 1: to not give a hat trick, a locks losses for

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Speaker 1: the packers. Good luck with the Titans this weekend. Mr

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Speaker 1: Harrow is an investor from Chicago, and he is someone

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Speaker 1: with a great affection for the people of the state

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Speaker 1: of Wisconsin. Who you put your trust in matters. Investors

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Speaker 1: have put their trust in independent registered investment advisors to

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Speaker 1: the tune of four trillion dollars. Why they see their

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Speaker 1: role is to serve, not sell. That's why Charles Schwab

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Speaker 1: is committed to the success of overseas. I'm in thousand

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Speaker 1: independent financial advisors who passionately dedicate themselves to helping people

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Speaker 1: achieve their financial goals. Learn more and find your independent

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Speaker 1: advisor dot com. Now joining us someone with a new

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Speaker 1: job title. He's part of the transition team for President Trump.

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Speaker 1: He will be the Fifth Avenue Zar. We all welcome

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Speaker 1: Stephen Ratner. You only you can help us with Midtown

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Speaker 1: Manhattan for the next four years. What have you observed

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Speaker 1: so far as you've been stuck in traffic? What I've

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Speaker 1: observed are more sanitation trucks than I've ever seen in

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Speaker 1: one place. Blocking blocking Trump Tower is going to be

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Speaker 1: a nightmare there until January, whenever he DeCamps. Would be

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Speaker 1: wonderful if you'd go to Bedminster for the duration. This

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Speaker 1: is not kind of bunk board, is it. This is

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Speaker 1: not kennebunk part um. I want to go back to

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Speaker 1: a chart you threw up on Morning Joe a number

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Speaker 1: of weeks ago, not even maybe two weeks ago, on

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Speaker 1: the Affordable Care Act. People would go Steve Rattner and

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Speaker 1: the Affordable Care Act, and you you're actually really up

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Speaker 1: to speed on it. What can Trump supporters and Clinton

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Speaker 1: supporters expect from the amendment and adjustment of Obamacare? If

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Speaker 1: you take them at face value, they're going to repeal

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Speaker 1: and replace. We don't have any idea what they're going

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Speaker 1: to replace it with. I think that cooler heads will prevail,

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Speaker 1: and I don't think it's going to be day one.

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Speaker 1: Let's just repeal the Affordable Care Act and figure out

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Speaker 1: what we do next. But I think a number of

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Speaker 1: the elements of it, particularly the subsidies um UH and

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Speaker 1: the expansion of Medicaid, may go and so the consequence

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Speaker 1: will be there at twenty million people who have gotten

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Speaker 1: coverage under the Affordable Care Act in one form or another,

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Speaker 1: and I think you'll see that number go down. Some

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Speaker 1: of the provisions like um no not denying coverage for

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Speaker 1: pre existing condition, is keeping kids up until the age

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Speaker 1: of twenty six or so politically popular that I suspect

428
00:24:04,760 --> 00:24:08,080
Speaker 1: they stay in place. Trump has also talked about selling insurance,

429
00:24:08,080 --> 00:24:10,359
Speaker 1: allowing insurance to be sold across state lines, which has

430
00:24:10,440 --> 00:24:13,960
Speaker 1: some good and some bad aspects to that. Um I

431
00:24:14,000 --> 00:24:16,359
Speaker 1: think you'll see a major restructuring of it pretty quickly

432
00:24:16,560 --> 00:24:18,840
Speaker 1: and and a loss of coverage for a lot of people.

433
00:24:18,880 --> 00:24:21,640
Speaker 1: And Steve, what you're so good at then with seriously,

434
00:24:21,640 --> 00:24:24,960
Speaker 1: your public service with Detroit years ago is the melding

435
00:24:25,000 --> 00:24:28,639
Speaker 1: of legislature with executive with judicial. Do you assume a

436
00:24:28,760 --> 00:24:34,320
Speaker 1: judicial response lawsuits, et cetera to try to block Trump

437
00:24:35,000 --> 00:24:38,919
Speaker 1: medical care? I see no basis for that. It was

438
00:24:38,960 --> 00:24:42,639
Speaker 1: hard enough to get judicial approval of Obamacare, if he

439
00:24:42,680 --> 00:24:45,560
Speaker 1: wants to repeal parts of it and replace it with

440
00:24:45,600 --> 00:24:47,720
Speaker 1: other things that are in fact less of an invasion

441
00:24:47,720 --> 00:24:50,280
Speaker 1: of the state, you know, as the Republicans would put

442
00:24:50,280 --> 00:24:52,879
Speaker 1: it into the private sector. Why would the courts have

443
00:24:52,920 --> 00:24:56,639
Speaker 1: any problem with that? Republican talking point after that law

444
00:24:56,640 --> 00:24:58,520
Speaker 1: has passed was that it was so mammoth it would

445
00:24:58,520 --> 00:25:01,400
Speaker 1: be very difficult to repeal, that it had led into

446
00:25:01,480 --> 00:25:03,320
Speaker 1: so many parts of the government, would be hard to

447
00:25:03,160 --> 00:25:06,360
Speaker 1: to rip out. Uh is there truth to that? When

448
00:25:06,359 --> 00:25:09,080
Speaker 1: when you talk about a wholesale repeal of this law,

449
00:25:09,119 --> 00:25:12,720
Speaker 1: how difficult would that be. I can't speak to every

450
00:25:12,800 --> 00:25:15,399
Speaker 1: every piece of it, but it doesn't strike me that

451
00:25:15,520 --> 00:25:18,119
Speaker 1: it would be that difficult. To simply reduce the subsidies,

452
00:25:18,160 --> 00:25:22,240
Speaker 1: as I said, reduced the Medicaid expansion, curtail the time

453
00:25:22,240 --> 00:25:24,840
Speaker 1: in which the federal government will pay the costs of

454
00:25:24,840 --> 00:25:28,040
Speaker 1: the Medicaid expansion. Those are all pretty simple legislative things.

455
00:25:28,119 --> 00:25:30,440
Speaker 1: I think the question that the Republicans are gonna have

456
00:25:30,480 --> 00:25:33,600
Speaker 1: to ask themselves is that all these so called massive

457
00:25:33,640 --> 00:25:36,879
Speaker 1: premium increases affected about three percent of Americans. Got a

458
00:25:36,880 --> 00:25:39,359
Speaker 1: lot of headlines about three percent of Americans. There are

459
00:25:39,440 --> 00:25:43,480
Speaker 1: twenty million Americans who are benefiting from Obamacare and and

460
00:25:43,640 --> 00:25:46,159
Speaker 1: politically a lot of them are actually Trump supporters. These

461
00:25:46,200 --> 00:25:48,000
Speaker 1: are people at the lower end of the of the

462
00:25:48,040 --> 00:25:50,400
Speaker 1: economic spectrum, and so they're going to have to decide

463
00:25:50,400 --> 00:25:53,720
Speaker 1: whether they really want to take something away from these

464
00:25:53,720 --> 00:25:56,359
Speaker 1: people that they now feel they have. When Donald Trump

465
00:25:56,359 --> 00:25:59,040
Speaker 1: and Mike Pennce sit down with how Speaker Paul Ryan

466
00:25:59,080 --> 00:26:01,439
Speaker 1: today for lunch at the Capital, as they're going to do,

467
00:26:02,520 --> 00:26:04,120
Speaker 1: what do they have to figure out here? We're talking

468
00:26:04,160 --> 00:26:06,720
Speaker 1: about healthcare reform. Paul Ryan has what he'd like to

469
00:26:06,760 --> 00:26:08,439
Speaker 1: be at the top of the legislative agenda. What do

470
00:26:08,440 --> 00:26:10,520
Speaker 1: you think is gonna when the talk gets sorted out?

471
00:26:10,560 --> 00:26:12,880
Speaker 1: What's Congress going to tackle here in the next few months,

472
00:26:12,920 --> 00:26:15,600
Speaker 1: indeed the first term? First, here's what here. First of all,

473
00:26:15,640 --> 00:26:18,480
Speaker 1: it's important to note that Ronald Reagan did not have

474
00:26:18,600 --> 00:26:21,119
Speaker 1: a majority of either House. Donald Trump is arriving with

475
00:26:21,320 --> 00:26:24,199
Speaker 1: support of both houses, So you're going to see a

476
00:26:24,280 --> 00:26:28,919
Speaker 1: republic a Reagan revolution potentially on steroids. There is essentially

477
00:26:29,080 --> 00:26:32,760
Speaker 1: very close agreement between Trump and Paul Ryan on the

478
00:26:32,800 --> 00:26:35,720
Speaker 1: tax side of the equation. Their tax plans are very

479
00:26:35,800 --> 00:26:39,320
Speaker 1: very similar. Where there is disagreement is over this what

480
00:26:39,400 --> 00:26:43,320
Speaker 1: I'll call the spending side, entitlement reform. How much you

481
00:26:43,359 --> 00:26:45,879
Speaker 1: do on infrastructure and how you pay for that, and

482
00:26:45,920 --> 00:26:48,280
Speaker 1: how you keep the deficit from getting out of control.

483
00:26:48,720 --> 00:26:52,080
Speaker 1: And that's where I think there are some philosophical differences

484
00:26:52,119 --> 00:26:53,920
Speaker 1: and where there will be a lot of wood to chop.

485
00:26:54,080 --> 00:26:57,400
Speaker 1: There's also a huge philosophical difference on trade. Trump can

486
00:26:57,440 --> 00:26:59,880
Speaker 1: do a lot of the stuff on trade by executive authority.

487
00:27:00,720 --> 00:27:02,679
Speaker 1: Whether he's going to be willing to break with the

488
00:27:02,840 --> 00:27:04,919
Speaker 1: rank and file Republicans on the Hill to do it,

489
00:27:05,280 --> 00:27:07,840
Speaker 1: we will find out. But I think there's so much

490
00:27:07,920 --> 00:27:10,640
Speaker 1: common ground between their plans that I think you will

491
00:27:10,640 --> 00:27:14,959
Speaker 1: see a massive, a massive reorienta and deregulation, a massive

492
00:27:14,960 --> 00:27:19,600
Speaker 1: rerientation of the government's priorities real quick. Here. I was

493
00:27:19,600 --> 00:27:22,520
Speaker 1: talking to Eric Cant yesterday. He was on He tasted,

494
00:27:22,560 --> 00:27:25,240
Speaker 1: of course, that populism that has spread back into the

495
00:27:25,240 --> 00:27:28,480
Speaker 1: sport when he lost. Yeah, but he said, there's gonna

496
00:27:28,480 --> 00:27:30,520
Speaker 1: be a tension here between Donald Trump pushing for this

497
00:27:30,600 --> 00:27:33,360
Speaker 1: infrastructure spending and then part of the Republican caucus here

498
00:27:33,400 --> 00:27:35,960
Speaker 1: that is they'll say more more into fiscal discipline. How

499
00:27:36,000 --> 00:27:39,160
Speaker 1: how tight is that tension going to be. I think

500
00:27:39,200 --> 00:27:41,520
Speaker 1: there is pretty broad agreement that we need to do

501
00:27:41,600 --> 00:27:44,840
Speaker 1: something on infrastructure. I think Trump's plan is at the

502
00:27:45,320 --> 00:27:47,199
Speaker 1: is at the big end of the spectrum, and I

503
00:27:47,240 --> 00:27:50,520
Speaker 1: think the Republican Caucus will try to pull him back.

504
00:27:51,000 --> 00:27:52,800
Speaker 1: And so, as I said, I think the I think

505
00:27:52,840 --> 00:27:55,560
Speaker 1: on the revenue side, there's a lot of common ground.

506
00:27:55,680 --> 00:27:59,240
Speaker 1: On the expenditure side, there's more wood to chop. But

507
00:27:59,240 --> 00:28:01,439
Speaker 1: but they're gonna get stuff done. They're gonna get a

508
00:28:01,440 --> 00:28:03,920
Speaker 1: lot of stuff done. Yesterday was one of those days

509
00:28:04,840 --> 00:28:07,280
Speaker 1: where you seek therapy, or at least the wisdom of

510
00:28:07,359 --> 00:28:12,720
Speaker 1: a professional. Stephen Ratner with us Will Advisers, who oftentimes

511
00:28:12,800 --> 00:28:16,320
Speaker 1: wanders over to observe off the Bloomberg terminal, the equity markets,

512
00:28:17,400 --> 00:28:23,040
Speaker 1: negative futures, gloom eleven PM, Election night, David Girl looking

513
00:28:23,080 --> 00:28:26,800
Speaker 1: at negative six or whatever it was points negative three

514
00:28:26,880 --> 00:28:30,800
Speaker 1: hundred points near the market opening, and there was Steve

515
00:28:30,880 --> 00:28:34,000
Speaker 1: Ratner green on the screen. I saw the dow print green,

516
00:28:34,040 --> 00:28:36,240
Speaker 1: and I'm like, well, they gotta open the shares in

517
00:28:36,359 --> 00:28:38,520
Speaker 1: the green state green, and up, up, up we go.

518
00:28:38,960 --> 00:28:41,640
Speaker 1: What is it day? Like that signal to you? Uh?

519
00:28:41,680 --> 00:28:43,800
Speaker 1: It signals to me that anyone who thinks they can

520
00:28:43,800 --> 00:28:49,280
Speaker 1: predict equity markets should go into analysis because um, as

521
00:28:49,320 --> 00:28:51,800
Speaker 1: you know, during the campaign, every time it looked like

522
00:28:51,840 --> 00:28:54,840
Speaker 1: Trump was doing better than markets went down, every vice versa.

523
00:28:55,040 --> 00:28:58,440
Speaker 1: Justin Wolfers among many other people attract all this had

524
00:28:58,520 --> 00:29:02,240
Speaker 1: very precise calculations what would happen if Trump won, and

525
00:29:02,520 --> 00:29:04,920
Speaker 1: for as you say, for the first fifteen minutes to

526
00:29:04,920 --> 00:29:07,480
Speaker 1: look like they were right, and then everybody said, wait

527
00:29:07,480 --> 00:29:09,120
Speaker 1: a minute, what about all the stimulus, what about all

528
00:29:09,120 --> 00:29:12,480
Speaker 1: the infrastructure, what about Caterpillar? What about all this more

529
00:29:12,640 --> 00:29:15,040
Speaker 1: completely roll you know what the other way? And it's uh,

530
00:29:15,600 --> 00:29:21,160
Speaker 1: it is it is humbling, David uh pontificate to those

531
00:29:21,200 --> 00:29:25,760
Speaker 1: of corn Ellen Brown, It's amazing lack of microeconomic foundations

532
00:29:25,840 --> 00:29:28,880
Speaker 1: within the media. It's just could there could there be

533
00:29:28,880 --> 00:29:32,880
Speaker 1: a requirements to take micro economics before you get a

534
00:29:33,000 --> 00:29:35,640
Speaker 1: mic in front of you. Hey, I'm all for that,

535
00:29:35,800 --> 00:29:38,120
Speaker 1: I believe in that. But but you've got you had

536
00:29:38,600 --> 00:29:44,560
Speaker 1: thousands of highly trained professionals pH d s who got this,

537
00:29:44,960 --> 00:29:47,400
Speaker 1: who got it wrong. It's just it is very humbling

538
00:29:47,400 --> 00:29:49,440
Speaker 1: and it was a lesson to me as an investor.

539
00:29:49,880 --> 00:29:53,040
Speaker 1: Don't try to time markets. We've been talking about uncertainty

540
00:29:53,040 --> 00:29:55,640
Speaker 1: throughout the morning, talked about it yesterday as well. From

541
00:29:55,680 --> 00:29:58,960
Speaker 1: an investment perspective, how long does that uncertainty continue? We

542
00:29:59,000 --> 00:30:01,480
Speaker 1: heard from Donald Trump obviously late in the evening, early

543
00:30:01,480 --> 00:30:04,360
Speaker 1: in the morning after election day, he goes to the

544
00:30:04,360 --> 00:30:07,240
Speaker 1: White House today. What clarity do we need for some

545
00:30:07,280 --> 00:30:10,120
Speaker 1: of that uncertainty to allay? I first, so obviously the

546
00:30:10,120 --> 00:30:12,400
Speaker 1: market isn't bothered about the uncertainty at the moment. The

547
00:30:12,400 --> 00:30:15,720
Speaker 1: bond markets pretty spooked, but the equity markets are happy.

548
00:30:15,800 --> 00:30:18,440
Speaker 1: I think it's literally months, because, first of all, Donald

549
00:30:18,440 --> 00:30:20,560
Speaker 1: Trump was on his meds for one speech, and we

550
00:30:20,600 --> 00:30:23,120
Speaker 1: have to see how long that persists. But even if

551
00:30:23,160 --> 00:30:26,880
Speaker 1: he acts perfectly rationally, as we have talked about, there's

552
00:30:26,880 --> 00:30:28,520
Speaker 1: a lot of wood to chop between him and the

553
00:30:28,560 --> 00:30:31,360
Speaker 1: rest of Republicans. Were in uncharted waters with respect to

554
00:30:31,400 --> 00:30:34,040
Speaker 1: a number of the policy proposals that he's put forth

555
00:30:34,080 --> 00:30:36,360
Speaker 1: and whether he'll pursue them. So I think there's I

556
00:30:36,440 --> 00:30:38,280
Speaker 1: think you're gonna see a lot of altility in the

557
00:30:38,360 --> 00:30:41,280
Speaker 1: next at least six months. Suberans in the banking sector

558
00:30:41,360 --> 00:30:43,920
Speaker 1: yesterday was forecast that the financial sector would do well

559
00:30:43,960 --> 00:30:46,200
Speaker 1: if he were to be elected president. Let's talk about

560
00:30:46,240 --> 00:30:50,080
Speaker 1: financial reform. They're closing their midtown branch close achievements because

561
00:30:50,080 --> 00:30:51,960
Speaker 1: like people can't get to them because of the sanitation

562
00:30:52,000 --> 00:30:55,640
Speaker 1: trucks and security. But uh, what about financial reform again?

563
00:30:55,680 --> 00:30:57,800
Speaker 1: We we talked about healthcare reform, how he wants to

564
00:30:57,880 --> 00:31:01,280
Speaker 1: to rip that out and and perhaps do something different.

565
00:31:01,280 --> 00:31:03,280
Speaker 1: When you look at financial reform, what's Donald Trump said?

566
00:31:03,280 --> 00:31:05,400
Speaker 1: What do you expect to happen there? But first of all,

567
00:31:05,440 --> 00:31:07,880
Speaker 1: the bank's got a double positive whammy. Of course they

568
00:31:07,920 --> 00:31:09,920
Speaker 1: got they got rates going up, which is great for

569
00:31:09,960 --> 00:31:13,360
Speaker 1: their nim and they've gotten Now Donald Trump saying he's

570
00:31:13,360 --> 00:31:16,200
Speaker 1: gonna repeal out of his exact words are but essentially

571
00:31:16,520 --> 00:31:18,920
Speaker 1: got in one form or another Dot Frank. Uh. This

572
00:31:19,080 --> 00:31:23,640
Speaker 1: talk of them rolling back the fiduciary standard for investment advisors,

573
00:31:24,480 --> 00:31:26,040
Speaker 1: I think it is going to be a fiel day

574
00:31:26,040 --> 00:31:28,840
Speaker 1: in Washington for financial services. And even as a member

575
00:31:28,840 --> 00:31:31,240
Speaker 1: of that community, I think some of that may well

576
00:31:31,280 --> 00:31:34,080
Speaker 1: be unfortunate because we needed more regulation, we needed to

577
00:31:34,160 --> 00:31:36,360
Speaker 1: avoid some of the problems we've had in the past.

578
00:31:36,400 --> 00:31:38,680
Speaker 1: But but the market clearly thinks the banks are going

579
00:31:38,720 --> 00:31:40,960
Speaker 1: to have a fielding. Yeah, this is why we love

580
00:31:41,000 --> 00:31:43,760
Speaker 1: having you on because you go right to the observation

581
00:31:43,880 --> 00:31:46,120
Speaker 1: of the what you did is our I mean, we

582
00:31:46,200 --> 00:31:48,200
Speaker 1: make jokes about it, folks, but I'm sorry. It was

583
00:31:48,280 --> 00:31:51,200
Speaker 1: brutal meetings and and a lot of back and forth

584
00:31:51,240 --> 00:31:56,200
Speaker 1: and almost game theory within dialogue and within conversation. What

585
00:31:56,320 --> 00:32:00,360
Speaker 1: kind of secretary of treasury does this nation need? We've

586
00:32:00,360 --> 00:32:04,160
Speaker 1: had John Connolly of Texas wounded with JFK. We did

587
00:32:04,720 --> 00:32:08,120
Speaker 1: we we was a governor of Texas. We've had Henry Paulson,

588
00:32:08,240 --> 00:32:12,240
Speaker 1: We've had the wonderfully competent Jacob Blue. What do we

589
00:32:12,280 --> 00:32:16,360
Speaker 1: need in a treasury secretary for an original president? I

590
00:32:16,400 --> 00:32:19,720
Speaker 1: think the best treasury secretaries, and I say this obviously

591
00:32:19,760 --> 00:32:22,959
Speaker 1: from my own warped perspective have probably come out of

592
00:32:23,000 --> 00:32:27,040
Speaker 1: the financial sector because they understand microeconomics, as you say,

593
00:32:27,120 --> 00:32:33,320
Speaker 1: macroeconomics markets. But the Hank Paulson's, the Bob Rubens of

594
00:32:33,400 --> 00:32:37,080
Speaker 1: the world are I think the kind of certainly Jack

595
00:32:37,120 --> 00:32:40,040
Speaker 1: Blue did very well, Tim Geitner was great, are the

596
00:32:40,160 --> 00:32:43,480
Speaker 1: kinds of treasury secretaries we need. And also, honestly, I

597
00:32:43,480 --> 00:32:45,600
Speaker 1: will tell you, from my own experience and from observation,

598
00:32:46,160 --> 00:32:50,120
Speaker 1: anyone going into the government without prior government experience is

599
00:32:50,160 --> 00:32:52,720
Speaker 1: walking a perilous course, it is a different kind of

600
00:32:52,760 --> 00:32:55,479
Speaker 1: business than running a company or running a bank. And

601
00:32:55,560 --> 00:32:58,120
Speaker 1: so without naming names, we can all think back on

602
00:32:58,280 --> 00:33:01,360
Speaker 1: people who came into senior govern jobs with no prior

603
00:33:01,960 --> 00:33:04,600
Speaker 1: understanding that the public sector is different from the prior sector,

604
00:33:04,680 --> 00:33:08,160
Speaker 1: and inevitably they failed badly. You say that, and I

605
00:33:08,160 --> 00:33:10,200
Speaker 1: think immediately of Donald J. Trump, I mean, what is

606
00:33:10,280 --> 00:33:12,160
Speaker 1: what does he face in terms of figuring out that

607
00:33:12,280 --> 00:33:14,920
Speaker 1: that apparatus? It was one of the many reasons why

608
00:33:15,120 --> 00:33:18,080
Speaker 1: I had of trouble imagine him being as president. I

609
00:33:18,120 --> 00:33:20,080
Speaker 1: think he has a lot of figuring out to do

610
00:33:20,400 --> 00:33:23,040
Speaker 1: and uh, and I think that leads. I think that

611
00:33:23,160 --> 00:33:25,240
Speaker 1: is part and parcel of the uncertainty that we're that

612
00:33:25,280 --> 00:33:28,160
Speaker 1: we're looking at. I asked Eric Canter yesterday of expertise

613
00:33:28,240 --> 00:33:32,800
Speaker 1: matters in Washington. Experience and expertise matter today again he

614
00:33:32,920 --> 00:33:35,920
Speaker 1: faced an outsider beating him. In two thousand fourteen, he

615
00:33:36,400 --> 00:33:38,680
Speaker 1: worked with with outsiders who had come into Congress, and

616
00:33:38,720 --> 00:33:41,720
Speaker 1: there hasn't been a whole lot of congressional action. What

617
00:33:41,800 --> 00:33:45,520
Speaker 1: does experience count for today in Washington? Oh? I think

618
00:33:45,600 --> 00:33:48,000
Speaker 1: experience still matters in Washington in a in a job

619
00:33:48,080 --> 00:33:50,800
Speaker 1: like president or Secretary of the Treasury. You can come

620
00:33:50,840 --> 00:33:53,920
Speaker 1: in as a congressman, which is like starting, uh, you know,

621
00:33:53,960 --> 00:33:56,160
Speaker 1: as an investment analyst in our firm, and work your

622
00:33:56,160 --> 00:33:58,480
Speaker 1: way up. That's fine, that's how you get your experience.

623
00:33:58,880 --> 00:34:01,760
Speaker 1: But to have a senior lead or ship job, let

624
00:34:01,800 --> 00:34:06,160
Speaker 1: alone president with no experience, no relevant experience, I think

625
00:34:06,200 --> 00:34:09,120
Speaker 1: he is going to be very very freaky business. Mr Writner.

626
00:34:09,120 --> 00:34:11,759
Speaker 1: How do you respond to those that are optimistic of

627
00:34:11,760 --> 00:34:14,200
Speaker 1: a Reagan approach, which is a single sheet of paper

628
00:34:14,239 --> 00:34:18,040
Speaker 1: and decisions and Ronnie the paper and he'll make a

629
00:34:18,080 --> 00:34:21,839
Speaker 1: decision because he's delegated tons of authority. Does that work

630
00:34:21,880 --> 00:34:26,919
Speaker 1: in the world of two thousand? I don't. I don't

631
00:34:27,000 --> 00:34:29,520
Speaker 1: know how Trump is going to choose to govern. If

632
00:34:29,520 --> 00:34:33,040
Speaker 1: he chooses to hire good people, as Reagan did in

633
00:34:33,080 --> 00:34:36,040
Speaker 1: many cases, tell them his philosophy, which is, you know,

634
00:34:36,120 --> 00:34:38,400
Speaker 1: Reagan always liked to be very simple and to the point,

635
00:34:38,760 --> 00:34:40,719
Speaker 1: and then let them go do stuff and give him,

636
00:34:40,719 --> 00:34:42,439
Speaker 1: as you say, a single sheet of paper to check

637
00:34:42,480 --> 00:34:45,080
Speaker 1: a box. It could work fine if you want a

638
00:34:45,080 --> 00:34:48,480
Speaker 1: conservative government. If Trump decides, as he as he's done

639
00:34:48,480 --> 00:34:50,719
Speaker 1: in his business life, that he wants to pick the

640
00:34:50,760 --> 00:34:53,759
Speaker 1: shape of the door knobs. Uh In a in a

641
00:34:53,800 --> 00:34:56,399
Speaker 1: world where he does not understand how dor knobs work.

642
00:34:56,960 --> 00:34:58,960
Speaker 1: It could be it could be a lot of chaos,

643
00:34:59,080 --> 00:35:01,359
Speaker 1: and there's no way to know. We can all guess

644
00:35:01,400 --> 00:35:03,719
Speaker 1: at this, but we're in uncharted waters. When you heard

645
00:35:03,760 --> 00:35:06,080
Speaker 1: Donald Trump speak or heard the speech that Donald Trunk came,

646
00:35:06,120 --> 00:35:08,000
Speaker 1: I know it was late in the night. Um what

647
00:35:08,080 --> 00:35:10,840
Speaker 1: stood out to you? Were there any signs of optimism

648
00:35:10,840 --> 00:35:12,920
Speaker 1: for you and what he had to say you early

649
00:35:12,920 --> 00:35:15,160
Speaker 1: in the morning on Wednesday? I think that I don't

650
00:35:15,160 --> 00:35:17,880
Speaker 1: think there there were not many specifics. I think generally

651
00:35:17,920 --> 00:35:20,319
Speaker 1: it was the right tone. It was the right level

652
00:35:20,360 --> 00:35:24,600
Speaker 1: of conciliatory ness, if that's a word. Uh. It made,

653
00:35:24,719 --> 00:35:27,000
Speaker 1: it made. I think it did contribute to the positive

654
00:35:27,040 --> 00:35:29,200
Speaker 1: reaction of the market. That this guy was smart enough

655
00:35:29,239 --> 00:35:32,319
Speaker 1: to know that he remembered some At some point during

656
00:35:32,360 --> 00:35:33,920
Speaker 1: the primaries he said, you know, I can be I

657
00:35:33,920 --> 00:35:35,920
Speaker 1: can act presidential. Will be really boring, but I can

658
00:35:35,920 --> 00:35:38,680
Speaker 1: act presidential. Uh, and I'll do it when I have to.

659
00:35:39,000 --> 00:35:42,799
Speaker 1: And hopefully we are at that point. If you become

660
00:35:42,880 --> 00:35:46,200
Speaker 1: infrastructures are can you just get fifty eight Street fixed?

661
00:35:47,320 --> 00:35:50,760
Speaker 1: I think any chance of my being infrastructures are disappeared

662
00:35:50,760 --> 00:35:54,040
Speaker 1: about forty eight hours ago. Very good thing, Steve Rod

663
00:35:54,080 --> 00:35:57,200
Speaker 1: there were his political analysis on his future. He is

664
00:35:57,239 --> 00:36:12,040
Speaker 1: with will It Advisors. We go to really most one

665
00:36:12,040 --> 00:36:15,520
Speaker 1: of the most wonderful academics in America, and Arianna Caucha Lakota,

666
00:36:15,560 --> 00:36:20,520
Speaker 1: of course always associated with Minneapolis Economics, nowholding court in

667
00:36:20,600 --> 00:36:24,799
Speaker 1: the long winter of Rochester, New York at the University

668
00:36:25,239 --> 00:36:31,360
Speaker 1: of Rochester. UM. President Coucha Lacota, good morning, wonderful to

669
00:36:31,480 --> 00:36:33,080
Speaker 1: have you on. I want to go back to a

670
00:36:33,160 --> 00:36:36,160
Speaker 1: conversation with Villain Bauder the other day, which is the

671
00:36:36,200 --> 00:36:39,280
Speaker 1: idea where at the zero bound we've got the oddity

672
00:36:39,360 --> 00:36:43,600
Speaker 1: of the great distortion. Donald Trump, president elect Trump, has

673
00:36:43,600 --> 00:36:47,080
Speaker 1: an I S curve that's near vertical somewhere in that vicinity,

674
00:36:47,640 --> 00:36:50,480
Speaker 1: and he is going to institute fiscal policy to migrate

675
00:36:50,520 --> 00:36:54,160
Speaker 1: the I S curve. I believe to the right. Is

676
00:36:54,160 --> 00:36:58,120
Speaker 1: it a normal model, Professor, and as President elect Trump

677
00:36:58,160 --> 00:37:02,200
Speaker 1: gonna have normal economics? Or are we so messed up

678
00:37:02,600 --> 00:37:06,399
Speaker 1: in our microeconomics and our macroeconomics that he's got an

679
00:37:06,400 --> 00:37:12,880
Speaker 1: original task ahead? No, I I think actually, Um, the

680
00:37:12,960 --> 00:37:17,120
Speaker 1: unconventionality the situation is largely driven by the effective lower

681
00:37:17,160 --> 00:37:20,200
Speaker 1: bound or the zero lower bound on interest rates. Anything

682
00:37:20,320 --> 00:37:22,840
Speaker 1: that we that moving the uh i S curve to

683
00:37:22,880 --> 00:37:24,839
Speaker 1: the right is a positive from that point of view,

684
00:37:24,920 --> 00:37:27,960
Speaker 1: that it's gonna try to push us toward a situation

685
00:37:28,040 --> 00:37:30,480
Speaker 1: where our interest rates are higher around the world and

686
00:37:30,680 --> 00:37:35,280
Speaker 1: make the situation much much more conventional and much less confusing.

687
00:37:35,320 --> 00:37:38,520
Speaker 1: I think for both market participants and for for central banks.

688
00:37:39,080 --> 00:37:42,080
Speaker 1: Is that good enough, David that I SLM you know, Mini, course,

689
00:37:42,160 --> 00:37:46,200
Speaker 1: I appreciate it. John Tucker nodding didn't understand us, right,

690
00:37:46,320 --> 00:37:52,160
Speaker 1: appreciate it. D Let me ask you about the the

691
00:37:52,280 --> 00:37:55,760
Speaker 1: effects of the stimulus package and how your former colleagues

692
00:37:55,760 --> 00:37:58,960
Speaker 1: at the federal are are are viewing what's happening here. Uh,

693
00:37:59,120 --> 00:38:01,000
Speaker 1: they're being a politic, Glenn, all of that. But but

694
00:38:01,040 --> 00:38:03,239
Speaker 1: what does this mean for for for their calculus here

695
00:38:03,280 --> 00:38:05,840
Speaker 1: watching this unfold, watching the first steps of it today

696
00:38:05,880 --> 00:38:09,279
Speaker 1: when when the President elect meets with the House Speaker. So,

697
00:38:09,360 --> 00:38:13,240
Speaker 1: I think that, uh, let me talk about the economics,

698
00:38:13,280 --> 00:38:14,839
Speaker 1: and I'll talk a little bit of the politics, which

699
00:38:14,880 --> 00:38:17,719
Speaker 1: is uh certainly not my area of expertise. But on

700
00:38:17,760 --> 00:38:23,200
Speaker 1: the economics, I think that the stimulus package is uh,

701
00:38:23,400 --> 00:38:26,640
Speaker 1: I'm gonna put upward pressure on prices and employment coming

702
00:38:26,680 --> 00:38:30,279
Speaker 1: from the fact that the government's UH buying more goods

703
00:38:30,320 --> 00:38:33,879
Speaker 1: and services, employing more people. That's just all putting upper

704
00:38:33,920 --> 00:38:37,239
Speaker 1: pressure on on on prices and employment as well. You

705
00:38:37,280 --> 00:38:41,320
Speaker 1: will see potentially an increase in projected debt for the US.

706
00:38:41,600 --> 00:38:44,319
Speaker 1: This is gonna put upper pressure on interest rates. All

707
00:38:44,400 --> 00:38:46,879
Speaker 1: of this is going to would mean at the FED,

708
00:38:47,200 --> 00:38:49,440
Speaker 1: UH in order to hit its inflation target, would be

709
00:38:49,440 --> 00:38:53,880
Speaker 1: thinking about raising rates more rapidly. So that's just on

710
00:38:53,920 --> 00:38:56,719
Speaker 1: the stimulus front. The kind of balance of that is

711
00:38:56,760 --> 00:39:00,799
Speaker 1: there's a lot of uncertainty about the new igistration's trade

712
00:39:00,840 --> 00:39:03,360
Speaker 1: policies UM, and I think that count of bounce is

713
00:39:03,360 --> 00:39:05,640
Speaker 1: probably we'll win, and they're thinking of the FED is

714
00:39:06,520 --> 00:39:08,520
Speaker 1: we don't know how those trade policies are gonna affect

715
00:39:08,520 --> 00:39:11,040
Speaker 1: the global economy going forward. And that's going to argue

716
00:39:11,040 --> 00:39:14,239
Speaker 1: for prudence in monetary policy. That's all the economics front.

717
00:39:14,440 --> 00:39:17,680
Speaker 1: On the politics front, UM, the trade policy stuff. As

718
00:39:17,680 --> 00:39:20,279
Speaker 1: far as I can understand, I know the legalities of it.

719
00:39:20,400 --> 00:39:23,120
Speaker 1: Administration has a lot of UH scope to do that

720
00:39:23,160 --> 00:39:27,400
Speaker 1: on its own without um a congressional approval. On the

721
00:39:27,840 --> 00:39:30,520
Speaker 1: On the stimulus front, that UH that all has to

722
00:39:30,560 --> 00:39:33,719
Speaker 1: come with congressional approval, and so that's gonna depend on

723
00:39:33,800 --> 00:39:38,759
Speaker 1: the details of negotiations between the new president and his

724
00:39:38,840 --> 00:39:42,160
Speaker 1: Republican colleagues. Do you think this is inherently a good thing?

725
00:39:42,200 --> 00:39:44,520
Speaker 1: We have heard the cries for fiscal stimulus from central

726
00:39:44,520 --> 00:39:46,759
Speaker 1: bankers around the world. We are getting some of it.

727
00:39:46,760 --> 00:39:48,359
Speaker 1: And if it is a good thing, how much does

728
00:39:48,600 --> 00:39:52,719
Speaker 1: size matter? How much does content matter? At this point? Well,

729
00:39:52,800 --> 00:39:54,880
Speaker 1: from the first point of view, I think size is

730
00:39:54,880 --> 00:39:57,279
Speaker 1: a big deal. I uh. You know, the FED is

731
00:39:57,320 --> 00:40:00,279
Speaker 1: about macroeconomic objectives, and so size is the is the

732
00:40:00,360 --> 00:40:04,040
Speaker 1: main objective there. Obviously, if you're a voter, if you're

733
00:40:04,320 --> 00:40:07,600
Speaker 1: interested voter, you're remember the public you do care about

734
00:40:07,600 --> 00:40:09,880
Speaker 1: composition a big way. But from the Fed's point of

735
00:40:09,920 --> 00:40:12,000
Speaker 1: view or central banks point of view, you're just trying

736
00:40:12,040 --> 00:40:16,319
Speaker 1: to generate more demand. And uh um, And so I

737
00:40:16,320 --> 00:40:18,400
Speaker 1: think I don't think. I think size is really a

738
00:40:18,440 --> 00:40:22,040
Speaker 1: big determinant there. Uh. Marianna Cultural Lacoda with us of

739
00:40:22,400 --> 00:40:25,080
Speaker 1: the University of Rochester and of course the Far Bank

740
00:40:25,120 --> 00:40:30,279
Speaker 1: of Minneopish for years on the robustness of lais Fair

741
00:40:30,960 --> 00:40:34,880
Speaker 1: Cultural Lacoda Phelan on the robustness of Lais fair and

742
00:40:34,880 --> 00:40:37,120
Speaker 1: there's a different ways to take this, but I think

743
00:40:37,160 --> 00:40:38,920
Speaker 1: the heart of it, Mariana, is the idea of a

744
00:40:39,000 --> 00:40:43,319
Speaker 1: zero sum America. A lot of Trump economics, at least

745
00:40:43,400 --> 00:40:47,960
Speaker 1: within the campaign, was not isolation is but just no

746
00:40:48,000 --> 00:40:52,080
Speaker 1: one could win. There's a zero sum economics to it.

747
00:40:52,160 --> 00:40:56,239
Speaker 1: Does the does the president elect affect that forward or

748
00:40:56,320 --> 00:40:58,160
Speaker 1: is he gonna have to move away from a more

749
00:40:58,200 --> 00:41:03,520
Speaker 1: a mercantilist view. That's a great question, Tom and I.

750
00:41:03,520 --> 00:41:06,640
Speaker 1: I I think that the fact we've been at the

751
00:41:06,680 --> 00:41:10,200
Speaker 1: effect of lower bound constrained by demand throughout the world

752
00:41:10,719 --> 00:41:13,719
Speaker 1: has created a vision of zero sum vision for so

753
00:41:13,719 --> 00:41:16,960
Speaker 1: many people. I think that Trump tapped into that. But

754
00:41:17,160 --> 00:41:21,399
Speaker 1: I really like about the physical stimulus is I think

755
00:41:21,400 --> 00:41:23,120
Speaker 1: it can get us away from the effect of lower

756
00:41:23,120 --> 00:41:28,000
Speaker 1: bound not just here but globally and create and recreate

757
00:41:28,360 --> 00:41:31,520
Speaker 1: a world in which, uh, it's not zero sum. If

758
00:41:31,560 --> 00:41:35,200
Speaker 1: I invented events something that it expands the frontier for everybody,

759
00:41:35,200 --> 00:41:37,200
Speaker 1: and it's a great thing for everybody. Okay, but you

760
00:41:37,239 --> 00:41:39,960
Speaker 1: were out of Princeton and you did your economics in Chicago,

761
00:41:40,040 --> 00:41:42,920
Speaker 1: the land of Jacob Viner. His classic paper of the

762
00:41:43,000 --> 00:41:48,080
Speaker 1: nineteen forties, Power in Plenty, was the fear of mercantilism

763
00:41:48,080 --> 00:41:51,320
Speaker 1: out of World War Two. There's politic overlay here, Atlantic

764
00:41:51,400 --> 00:41:54,040
Speaker 1: Charter gap, get and all the rest. Are we going

765
00:41:54,080 --> 00:41:56,480
Speaker 1: to go into a new mercantilistic age and not the

766
00:41:56,560 --> 00:42:00,959
Speaker 1: same as the worry, but is the eight fear here

767
00:42:01,400 --> 00:42:06,680
Speaker 1: a mercantilist America. I think that, you know, as long

768
00:42:06,960 --> 00:42:10,040
Speaker 1: as people have this perception of the economy as being

769
00:42:10,120 --> 00:42:14,680
Speaker 1: zero sum, it's a big political risk that um, they're

770
00:42:14,680 --> 00:42:17,160
Speaker 1: gonna that that that you're going to see bigger trade

771
00:42:17,160 --> 00:42:21,919
Speaker 1: barriers spring up between America and It's it's partners. It's

772
00:42:22,000 --> 00:42:26,719
Speaker 1: really behooves. I think policymakers to institute pro growth policies

773
00:42:26,760 --> 00:42:30,239
Speaker 1: as International Monetary Fund has been urging in order to

774
00:42:30,320 --> 00:42:32,919
Speaker 1: get us away from the effective lower A bound and

775
00:42:32,920 --> 00:42:36,280
Speaker 1: and not have us constrained by demand but instead constrained

776
00:42:36,280 --> 00:42:39,520
Speaker 1: but it's natural by supplies, and and that we're pushing

777
00:42:39,560 --> 00:42:43,960
Speaker 1: against apply constraints and making everyone better off by doing so. Professor,

778
00:42:44,040 --> 00:42:46,960
Speaker 1: thank you so much, arian A cultural Dakota with us

779
00:42:47,000 --> 00:42:50,720
Speaker 1: from the University of Rochester on this momentous day. Greatly

780
00:42:50,760 --> 00:42:53,800
Speaker 1: appreciate his attendance, Love his work with Bloomberg View. Some

781
00:42:53,960 --> 00:43:00,399
Speaker 1: smart smart, always debatable, always controversial, smart essays from UH

782
00:43:00,560 --> 00:43:15,440
Speaker 1: Professor and President Couche Lakota joining us now in our

783
00:43:15,480 --> 00:43:21,279
Speaker 1: studios in our world headquarters, ginner Amando of Providence. This

784
00:43:21,560 --> 00:43:23,920
Speaker 1: is the most important interview of the day. And the

785
00:43:23,960 --> 00:43:26,400
Speaker 1: President of LEC does not want to go to the

786
00:43:26,400 --> 00:43:29,920
Speaker 1: White House. He wants to have a good breakfast in

787
00:43:29,960 --> 00:43:33,719
Speaker 1: a diner in Smithfield, Rhode Island, and Governor Romondo to

788
00:43:33,800 --> 00:43:39,000
Speaker 1: talk about fiscal stimulus. It is legendary. The Huntington's Viaduct

789
00:43:39,840 --> 00:43:44,400
Speaker 1: is the mass of migrates east and west. And you

790
00:43:44,440 --> 00:43:48,440
Speaker 1: have enjoyed the tangible headaches of what the prima Donnas

791
00:43:48,440 --> 00:43:52,320
Speaker 1: of Washington we'll talk about. You have the worst bridges

792
00:43:52,640 --> 00:43:54,680
Speaker 1: in the nation. And I say this with a rigor

793
00:43:54,760 --> 00:43:57,360
Speaker 1: of a Rhode Island winter, and I don't mean it

794
00:43:57,400 --> 00:44:01,319
Speaker 1: with any a detriment. What the fact is, you have

795
00:44:01,360 --> 00:44:03,359
Speaker 1: the worst bridges in the nation. What do you need

796
00:44:03,440 --> 00:44:06,280
Speaker 1: from President elect Trump and the Republicans in the House,

797
00:44:06,480 --> 00:44:10,759
Speaker 1: in the Senate for the Democratic stronghold of Rhode Island. Yeah,

798
00:44:10,800 --> 00:44:19,239
Speaker 1: good morning, great to be with. So you're right, by

799
00:44:19,280 --> 00:44:21,040
Speaker 1: the way, we do have the worst bridges in America,

800
00:44:21,080 --> 00:44:23,759
Speaker 1: which is a problem and one of the first things

801
00:44:23,800 --> 00:44:26,319
Speaker 1: I did as governors, I worked with our local legislature

802
00:44:26,840 --> 00:44:30,520
Speaker 1: to uh pass a bility called Roadworks, which is a

803
00:44:30,560 --> 00:44:33,560
Speaker 1: billion dollar road program. But we need money from the

804
00:44:33,600 --> 00:44:37,799
Speaker 1: federal government. The federal government needs to show up, do

805
00:44:37,920 --> 00:44:41,600
Speaker 1: its job, pass a responsible infrastructure bill to send money

806
00:44:41,640 --> 00:44:44,319
Speaker 1: to the states like Rhode Island so that we can

807
00:44:44,400 --> 00:44:47,800
Speaker 1: have bridges that aren't crumbling. And I hate to say

808
00:44:48,080 --> 00:44:51,120
Speaker 1: it's just money, except in this case it is. I mean,

809
00:44:51,120 --> 00:44:54,800
Speaker 1: I think we can all agree to the benefits of better, safer,

810
00:44:54,880 --> 00:44:59,439
Speaker 1: newer infrastructure, and the federal government just needs to step

811
00:44:59,520 --> 00:45:01,680
Speaker 1: up because oh, one state is ever going to have,

812
00:45:02,200 --> 00:45:04,120
Speaker 1: you know, enough money to be able to do everything

813
00:45:04,120 --> 00:45:07,000
Speaker 1: that we need. Governor, you had some protesters outside the

814
00:45:07,000 --> 00:45:09,719
Speaker 1: state house last night on the heels of the election,

815
00:45:09,800 --> 00:45:12,719
Speaker 1: Tom talking about how that infrastructure package could benefit you

816
00:45:12,760 --> 00:45:15,360
Speaker 1: and your state. What are your your hopes, your prospects

817
00:45:15,400 --> 00:45:20,239
Speaker 1: of reconciliation a good relationship here with the new president. Well,

818
00:45:20,320 --> 00:45:22,120
Speaker 1: I think we have to try. I mean, we do

819
00:45:22,200 --> 00:45:23,719
Speaker 1: have to try, and we have to hope that it

820
00:45:23,760 --> 00:45:27,800
Speaker 1: can happen. I was, of course very disappointed. Wednesday morning.

821
00:45:28,000 --> 00:45:29,920
Speaker 1: I woke up and there are a lot of tears

822
00:45:29,920 --> 00:45:33,640
Speaker 1: in my household from my son and daughter. Um. But

823
00:45:33,920 --> 00:45:36,160
Speaker 1: now we've got to move on and I have a

824
00:45:36,239 --> 00:45:38,440
Speaker 1: job to do. Right I'm the governor of Rhode Island.

825
00:45:38,840 --> 00:45:40,319
Speaker 1: I still have a lot of people out of work.

826
00:45:40,360 --> 00:45:43,560
Speaker 1: We have poor infrastructure. So I have to find a

827
00:45:43,560 --> 00:45:45,920
Speaker 1: way to work with this a new administration and be

828
00:45:46,080 --> 00:45:49,239
Speaker 1: a relentless advocate for Rhode Island. And that's what I

829
00:45:49,280 --> 00:45:51,680
Speaker 1: plan to do. You were treasure of the state UH

830
00:45:51,840 --> 00:45:55,239
Speaker 1: and and dealt with pension problems in Rhode Island. There

831
00:45:55,239 --> 00:45:57,400
Speaker 1: are a number of other states and municipalities dealing with

832
00:45:57,400 --> 00:45:59,319
Speaker 1: those as well. How applicable is is what you were

833
00:45:59,360 --> 00:46:01,719
Speaker 1: able to do in Rhode Island to those other places.

834
00:46:02,440 --> 00:46:07,120
Speaker 1: I think it's directly applicable UH solving difficult fiscal issues

835
00:46:07,440 --> 00:46:11,120
Speaker 1: like pensions, like medicaid. You know, it turns out that

836
00:46:11,160 --> 00:46:15,640
Speaker 1: the actual policy solution isn't the hard part. Um, we

837
00:46:15,719 --> 00:46:18,560
Speaker 1: knew what had to happen. Raising retirement ages, getting rid

838
00:46:18,560 --> 00:46:21,360
Speaker 1: of cost of living increases the hard parts of the politics,

839
00:46:21,880 --> 00:46:24,680
Speaker 1: which just comes down to like a leader having the

840
00:46:24,760 --> 00:46:27,719
Speaker 1: political stomach to do it. I want to go way

841
00:46:27,719 --> 00:46:31,080
Speaker 1: off script here, you clerks for Kim Kimba Wood a

842
00:46:31,120 --> 00:46:35,120
Speaker 1: million years ago. Yeah, hey, many years ago. No, But

843
00:46:35,160 --> 00:46:39,920
Speaker 1: politically it seems like let me rephrase this if I

844
00:46:40,040 --> 00:46:45,120
Speaker 1: made young, please, Rhode Island is a state north northeast

845
00:46:45,160 --> 00:46:48,759
Speaker 1: of New Jersey. Case you wanted to understand that, Um,

846
00:46:50,200 --> 00:46:54,080
Speaker 1: you clerk for Kimba, would help us here with how

847
00:46:54,200 --> 00:46:58,640
Speaker 1: Mr Trump, distant from you, needs to select Supreme Court

848
00:46:58,800 --> 00:47:02,839
Speaker 1: judges that have a certain alon like you saw from

849
00:47:02,920 --> 00:47:07,359
Speaker 1: Judge Wood. Judge Wood is an extraordinary judge I did.

850
00:47:07,400 --> 00:47:09,160
Speaker 1: I had the pleasure of clerking for her right after

851
00:47:09,200 --> 00:47:11,839
Speaker 1: I get out of law school. She's amazing, and I

852
00:47:11,880 --> 00:47:17,160
Speaker 1: hope he picks people like her who are fair and

853
00:47:17,440 --> 00:47:20,840
Speaker 1: not overly political, don't bring their ideology to the bench,

854
00:47:21,640 --> 00:47:26,880
Speaker 1: and are of keen intellectual Senate drive that discussion. Do

855
00:47:26,920 --> 00:47:29,680
Speaker 1: you have an optimism to move away from the certitude

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00:47:29,680 --> 00:47:33,440
Speaker 1: that we heard within the election? I don't know. Is

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00:47:33,640 --> 00:47:35,560
Speaker 1: you're going off scripts so I'll be very candid. I

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00:47:35,640 --> 00:47:37,200
Speaker 1: don't know. But for the sake of the nation, I

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00:47:37,239 --> 00:47:39,440
Speaker 1: hope that they can. I hope they can put justice

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00:47:39,480 --> 00:47:42,799
Speaker 1: and fairness above politics because people deserve it and I

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00:47:42,840 --> 00:47:45,840
Speaker 1: saw it when I clerked. You know, hundreds of litigants

862
00:47:45,880 --> 00:47:48,000
Speaker 1: come before you. They just want a fair shake. They

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00:47:48,000 --> 00:47:50,960
Speaker 1: don't want to be treated with politics and ideology. What

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00:47:51,040 --> 00:47:53,520
Speaker 1: happens to the anger that I'm sure you saw in

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00:47:53,520 --> 00:47:55,600
Speaker 1: in Rhode Island as well. The state of course went

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00:47:55,640 --> 00:47:58,680
Speaker 1: for for Secretary Clinton. But the anger exists. And what

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00:47:58,760 --> 00:48:00,440
Speaker 1: happens to it now that that we we have a

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00:48:00,440 --> 00:48:02,960
Speaker 1: new president, we have a president elect? How do we

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00:48:03,040 --> 00:48:06,120
Speaker 1: how do we channel that into something positive? I think

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00:48:06,440 --> 00:48:09,600
Speaker 1: people like me and leaders and public office have to

871
00:48:09,600 --> 00:48:12,239
Speaker 1: spend a lot more time listening, and I think, what

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00:48:12,239 --> 00:48:14,960
Speaker 1: what you're hearing people are saying, pay attention to me,

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00:48:15,520 --> 00:48:18,000
Speaker 1: and so it's incommon upon all of us, from the

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00:48:18,040 --> 00:48:20,759
Speaker 1: president on down, to get out in the community and

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00:48:20,800 --> 00:48:23,880
Speaker 1: open our ears to what people are really anxious about

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00:48:24,239 --> 00:48:28,319
Speaker 1: and then try to address their needs and concerns. She's

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00:48:28,360 --> 00:48:32,160
Speaker 1: a governor of the state of Rhode Island and Providence Plantations.

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Speaker 1: I love saying that speaks to us another time, Governor Remando,

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00:48:36,719 --> 00:48:46,600
Speaker 1: thank you so much, General Remando, thanks for listening to

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00:48:46,640 --> 00:48:52,719
Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on iTunes, SoundCloud,

881
00:48:53,120 --> 00:48:57,400
Speaker 1: or whichever podcast platform you prefer. I'm out on Twitter

882
00:48:57,480 --> 00:49:01,240
Speaker 1: at Tom Keene. David Gura is at day Bigura. Before

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00:49:01,280 --> 00:49:05,640
Speaker 1: the podcast, you can always catch us worldwide. I'm Bloomberg Radio.

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00:49:18,400 --> 00:49:22,239
Speaker 1: Who you put your trust in matters. Investors have put

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00:49:22,280 --> 00:49:25,720
Speaker 1: their trust in independent registered investment advisors to the tune

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00:49:25,719 --> 00:49:30,319
Speaker 1: of four trillion dollars. Why learn more and find your

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00:49:30,360 --> 00:49:34,319
Speaker 1: independent advisor dot com