WEBVTT - With Bitcoin at $51,000, Wall Street Skeptics Must Pay Attention 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanabek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all purtnising the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.200 Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:32.720 YouTube search Bloomberg Global News Listen. We've got winter storms 0:00:32.720 --> 0:00:35.800 slowing down the vaccination drive in New York, Florida, and 0:00:35.840 --> 0:00:38.640 Puerto Rico, a lot of other places. Anthony Fauci Nation's 0:00:38.680 --> 0:00:42.680 top infectious disease dr Tim saying inoculations have come to 0:00:42.680 --> 0:00:46.199 a grinding halt in some places. So that's a little worrisome. Yeah, 0:00:46.280 --> 0:00:48.800 it certainly is. That That's why we see the numbers 0:00:48.800 --> 0:00:51.360 come down in the Bloomberg Vaccine Tracker. If there is 0:00:51.440 --> 0:00:53.720 bad weather, it can change not just in a state, 0:00:53.760 --> 0:00:56.279 but also the supply chain. Yeah, exactly, So watching all 0:00:56.320 --> 0:00:59.440 of that closing right now, really closely, excuse me right now, 0:00:59.480 --> 0:01:01.920 cases ex eating a hundred and ten million around the world. 0:01:02.240 --> 0:01:05.440 Let's get into our next guest, who has spent over 0:01:05.480 --> 0:01:08.400 three decades working to boost the health, safety, and sustainability 0:01:08.400 --> 0:01:10.520 of our planet and the people working on it. Dr 0:01:10.600 --> 0:01:13.240 Shelley Hearn back with us, director of the Johns Hopkins 0:01:13.280 --> 0:01:16.240 Center for Public Health Advocacy at the Johns Hopkins Bloomberg 0:01:16.280 --> 0:01:19.520 School of Public Health, which is supported by Michael R. Bloomberg, founder, 0:01:19.520 --> 0:01:22.720 Bloomberg LP, and Bloomberg Philanthropies. She's with us once again 0:01:22.720 --> 0:01:26.039 from Charleston, South Carolina. Doctor her, Nice to have you 0:01:26.080 --> 0:01:30.480 back with us. Um, how are you. I'm doing whale, Carol. 0:01:30.600 --> 0:01:34.000 Thank you though, just like so many other Americans, I 0:01:34.040 --> 0:01:38.039 can't wait to get my vaccination shot right right and 0:01:38.080 --> 0:01:40.039 forgive me my understanding is you're in d C, not 0:01:40.520 --> 0:01:43.559 in South Carolina. Yeah, how do you think it's going? 0:01:43.600 --> 0:01:45.760 It feels like over the last couple of days we've 0:01:45.800 --> 0:01:48.600 been asking internally and our reporters have been reporting on 0:01:48.640 --> 0:01:51.480 it about hey, is the worst over because it did 0:01:51.560 --> 0:01:54.800 feel like with cases and hospitalizations coming down and more 0:01:55.000 --> 0:01:57.480 vaccines getting at it did feel like it was getting better. 0:01:57.520 --> 0:02:00.160 How do you see it? What are you hearing? Well? 0:02:00.160 --> 0:02:02.920 It absolutely is going in the right direction. You've seen 0:02:02.920 --> 0:02:07.800 the trends. We had our highest peaks ever in actual 0:02:07.920 --> 0:02:11.920 COVID desks in January, over four thousand a day. We're 0:02:12.080 --> 0:02:15.680 dropping now to two thousand, which is the right direction, 0:02:15.880 --> 0:02:20.160 but it's still much higher than the horrific peaks that 0:02:20.200 --> 0:02:22.800 we had in the summer. So we got to continue 0:02:22.840 --> 0:02:26.919 to stay vigilant, keep on this vaccines. It's just one 0:02:26.960 --> 0:02:29.959 part of that equation, but it comes down to also 0:02:30.040 --> 0:02:34.440 the mass, the social distancing um, the care that we 0:02:34.480 --> 0:02:37.760 have to do and continue to keep up. Why do 0:02:37.800 --> 0:02:39.600 you think we're seeing such a dramatic drop in such 0:02:39.600 --> 0:02:41.880 a short time. Is it is it too early because 0:02:42.120 --> 0:02:44.120 to see the effects of the vaccine, or is it 0:02:44.160 --> 0:02:48.200 because we're over that post holiday bump. You know, it's 0:02:48.200 --> 0:02:51.080 speculation and there are a number of different theories. We 0:02:51.160 --> 0:02:54.200 haven't the science hasn't come in yet, but it's probably 0:02:54.240 --> 0:02:57.640 a small contribution um the number of people that have 0:02:57.720 --> 0:03:02.320 actually had COVID that are gettingvaccinated. I think with news 0:03:02.360 --> 0:03:05.600 on the variant being out there, people have heightened again 0:03:05.800 --> 0:03:09.560 their vigilance and being careful on social distancing and wearing masks. 0:03:09.880 --> 0:03:13.160 You see more mandates. So it really comes down to 0:03:13.480 --> 0:03:17.639 a number of factors that helped turn this around. Uh, 0:03:17.680 --> 0:03:20.880 and hopefully down the road we will have that herd 0:03:20.880 --> 0:03:23.360 immunity and will be at a much better place. Selly, 0:03:23.400 --> 0:03:27.160 how do you think mind iminstration is doing so far? Well, 0:03:27.200 --> 0:03:31.160 you know someone who's a professor who's used to handing 0:03:31.160 --> 0:03:35.120 out grades. Uh, it's it isn't incomplete, but I've seen 0:03:35.240 --> 0:03:38.560 some very important signs, uh in terms of progress. So 0:03:39.240 --> 0:03:41.880 you know, the good news is we Uh there was 0:03:41.920 --> 0:03:45.920 a pledge to have a hundred million Americans vaccinated in 0:03:45.960 --> 0:03:50.640 a hundred days, which is ambitious. But I did have 0:03:50.680 --> 0:03:53.800 a chance to talk to the White House vaccine coordinator today. 0:03:54.160 --> 0:03:57.120 They even with the weather, appear to be on track. 0:03:57.360 --> 0:04:00.080 They're up to now about one point seven million and 0:04:00.120 --> 0:04:04.000 shots going into people's arms per day. So that's that's 0:04:04.040 --> 0:04:07.440 helping you with the math um. But but you know, 0:04:07.520 --> 0:04:11.120 we we started before this administration came in, we had 0:04:11.280 --> 0:04:14.440 about eight million doses a week going out to the states. 0:04:14.800 --> 0:04:17.800 Were now up to twelve million. But you know, just 0:04:17.880 --> 0:04:20.359 as well as everyone who's out there who's trying to 0:04:20.480 --> 0:04:25.360 help family members or themselves find a vaccine. It's complicated 0:04:25.400 --> 0:04:27.479 out there, and it's a bit of a mess from 0:04:27.520 --> 0:04:30.120 state to state. You know what I have to say 0:04:30.120 --> 0:04:31.760 one of the I don't know how you tim at home, 0:04:31.839 --> 0:04:36.080 but our conversations. What's confusing to me is I would assume, 0:04:36.760 --> 0:04:38.760 even if it was a little messy with the new 0:04:38.760 --> 0:04:41.800 administration coming in and trying to figure out getting up 0:04:41.800 --> 0:04:44.479 to speed, wouldn't a couple of phone calls to like, 0:04:45.120 --> 0:04:47.680 you know, Maderna and Fiser and say, all right, how 0:04:47.720 --> 0:04:50.599 many have we ordered? How many to make sure they're 0:04:50.640 --> 0:04:52.480 getting out, and a couple of calls to the states 0:04:52.520 --> 0:04:55.359 to say, let's just get it out. Um. I understand 0:04:55.400 --> 0:04:57.160 it's not as easy as that, but it does feel 0:04:57.200 --> 0:05:01.119 like it's taking a lot slow or than and maybe 0:05:01.120 --> 0:05:03.400 it said, well, I know there are a lot of 0:05:03.400 --> 0:05:05.880 sleepless nights for a lot of people out there, and 0:05:05.920 --> 0:05:10.520 those calls have been made and there the vaccine companies 0:05:10.560 --> 0:05:13.080 are stepping up, and there have been new commitments for 0:05:13.120 --> 0:05:19.320 additional doses from MODERNA from the soon hopefully coming online 0:05:19.720 --> 0:05:24.760 Johnson Johnson vaccine, So there's more that should be coming 0:05:24.800 --> 0:05:28.920 into the supply chain and they're talking about by July, uh, 0:05:29.120 --> 0:05:32.839 six hundred doses being available, which would would cover for 0:05:32.920 --> 0:05:35.760 everybody who needs and should have a shot. But it 0:05:36.040 --> 0:05:40.000 is still slow. And the thing that concerns me the 0:05:40.080 --> 0:05:43.440 most is, yes, we've got companies ramping up. Yes, the 0:05:43.480 --> 0:05:47.279 administration is trying to find as many different venues in 0:05:47.320 --> 0:05:50.000 ways to get this out there, but you have every 0:05:50.080 --> 0:05:54.520 state doing their own guidelines. It's um, it's a it's 0:05:54.640 --> 0:05:58.440 it's crazy to see this patchword taking place when we 0:05:58.520 --> 0:06:01.640 did have guidance put in as by the federal government 0:06:01.720 --> 0:06:04.640 of who should be prioritized how to roll it out, 0:06:05.080 --> 0:06:07.600 and it seems to have been forgotten. So that's that's 0:06:07.640 --> 0:06:10.599 the kind of thing I'd like us to have. UM 0:06:11.240 --> 0:06:14.640 that it's an equal opportunity versus people having to go 0:06:14.760 --> 0:06:18.360 hunting and pecking and shopping for a vaccine. Agreed. Agreed. 0:06:18.360 --> 0:06:21.520 I think it makes it really confusing and complicated for 0:06:21.520 --> 0:06:24.520 for all of US citizens. UM. Dr Jelleyharn, thank you 0:06:24.560 --> 0:06:26.680 so much. Really appreciate the time you find for us. 0:06:26.680 --> 0:06:29.680 Director of the Johns Hopkins Center for Public Health Advocacy 0:06:29.680 --> 0:06:32.520 at Johns Hopkins Bloomberg School of Public Health, of course, 0:06:32.560 --> 0:06:34.840 supported by Michael R. Bloomberg, founder of Bloomberg ELP and 0:06:34.839 --> 0:06:39.080 Bloomberg Philanthropies. That patchwork, Tim worries me. Yeah, it worries 0:06:39.080 --> 0:06:40.560 me as well. And I wondered to what extend public 0:06:40.560 --> 0:06:42.840 private partnerships are going to be something moving forward when 0:06:42.839 --> 0:06:44.760 it comes to vaccine distribution. If you think about how 0:06:44.760 --> 0:06:46.560 we get flu shots every year, so many of them 0:06:46.600 --> 0:06:49.040 happen at offices nationwide, is that what it's gonna look 0:06:49.080 --> 0:06:52.040 like in the future for COVID vaccine. This is Bloomberg 0:06:52.080 --> 0:06:55.720 Business Week with Carol Masser and Bloomberg Quick Takes Tim 0:06:55.800 --> 0:06:59.839 Stenovic on Bloomberg Radio. We continue to watch Tim a lot. 0:07:00.279 --> 0:07:03.000 What is happening in the big freeze in Texas. We 0:07:03.120 --> 0:07:06.160 know it's becoming a global oil market crisis as well, 0:07:06.240 --> 0:07:09.120 so much output comes out of Texas. And then let's 0:07:09.120 --> 0:07:11.640 not forget there was a story our Bloomberg News team 0:07:11.680 --> 0:07:14.120 reporting that Texas is restricting the flow of natural gas 0:07:14.120 --> 0:07:16.760 across state lines. There's a lot of interesting things going 0:07:16.800 --> 0:07:19.560 on here. Yeah. Unfortunately, we have Jennifer Delowe, energy and 0:07:19.640 --> 0:07:22.800 environmental policy reporter for Bloomberg News joining us on the 0:07:22.800 --> 0:07:26.040 phone now from Washington, d C. Jennifer it's it's great 0:07:26.080 --> 0:07:28.200 to speak with you again, and you've we've been joining 0:07:28.240 --> 0:07:30.040 us on Quick Take throughout the week and we really 0:07:30.040 --> 0:07:34.880 appreciate it. UM. Governor Greg Abbott has announced this, this 0:07:35.120 --> 0:07:36.840 order he is On Wednesday, he said that he was 0:07:36.920 --> 0:07:41.240 banning gas from leaving the state through February to ensure 0:07:41.280 --> 0:07:48.040 in state power generators had ample supplies. UM. Is this constitutional? Well, 0:07:48.440 --> 0:07:52.000 there's certainly a lot of questions being raised about the 0:07:52.080 --> 0:07:55.760 authority that he's using here. UH. And and certainly there 0:07:55.760 --> 0:07:59.200 have been questions raised about whether this violates the Constitution's 0:07:59.240 --> 0:08:04.000 Commerce Clause, which allows UH state governments to UM engage 0:08:04.000 --> 0:08:07.640 in interstate trade and prohibits them from interfering in interstate 0:08:07.720 --> 0:08:14.080 commerce the UH. Interestingly, the Biden administration was asked about 0:08:14.080 --> 0:08:17.480 how they're viewing this and and they said very clearly, UH. 0:08:17.680 --> 0:08:19.960 One of their top officials said just about an hour 0:08:20.000 --> 0:08:24.320 ago that, uh, the UH this is a state issue, 0:08:24.400 --> 0:08:28.320 This is a state authority here. Still questions are being raised, 0:08:28.360 --> 0:08:31.280 and it's not quite clear to us that that UH 0:08:31.480 --> 0:08:34.760 the gas exporters who are affected by this are inclined 0:08:34.800 --> 0:08:37.080 to follow the order. It's no longer just an order 0:08:37.080 --> 0:08:39.880 from Abbot, but in fact, the Railroad Commission of Texas 0:08:39.920 --> 0:08:41.840 has now it's been a notice to operators as well. 0:08:42.040 --> 0:08:43.640 Do you know what I love about these stories, Jen, 0:08:43.840 --> 0:08:46.520 is that it's it's a crisis and then all of 0:08:46.559 --> 0:08:49.679 a sudden we understand first of all how important Texas 0:08:49.760 --> 0:08:52.600 is globally to the oil market, their own power grid, 0:08:53.040 --> 0:08:55.960 and then we you know, start to learn about you know, 0:08:56.240 --> 0:09:00.959 constitutional so called you know, commerce clauses. I mean, these 0:09:00.960 --> 0:09:02.800 are things that in a normal day we don't even 0:09:02.800 --> 0:09:05.680 think about, right, but you know, there's these structures in 0:09:05.760 --> 0:09:09.680 place that can make things problematic, um and make you 0:09:09.679 --> 0:09:14.520 wonder kind of how things work right. And Texas is 0:09:14.640 --> 0:09:17.280 is so unique in many ways here because it is 0:09:17.320 --> 0:09:19.440 you know, a bit of an island in terms of 0:09:19.480 --> 0:09:21.760 its electric grid, which is not like the rest of 0:09:21.800 --> 0:09:25.640 the of the country. It is or cot is separate 0:09:25.679 --> 0:09:27.800 from the rest of the country's grid and and uh 0:09:27.840 --> 0:09:31.000 and that creates kind of a unique environment for um, 0:09:31.480 --> 0:09:34.760 for investments, but also for the challenges that we've seen 0:09:34.760 --> 0:09:38.520 over the last few days. And you know, in a crisis, 0:09:38.559 --> 0:09:41.680 let's not forget the you know, we're all looking to 0:09:42.080 --> 0:09:45.520 you know, political leaders to to act, and certainly Texans 0:09:45.559 --> 0:09:50.000 who have gone without power, Uh for days. Are are 0:09:50.120 --> 0:09:52.199 looking to their leader's act and that may be a 0:09:52.440 --> 0:09:55.040 big factor. And why you know that the governor came 0:09:55.080 --> 0:09:58.120 out and took this step yesterday. Hey, Jen, I gotta 0:09:58.120 --> 0:10:01.240 ask about the history here, because as uh, as you 0:10:01.280 --> 0:10:04.160 wrote in an earlier story about this, Texas was warned 0:10:04.160 --> 0:10:07.040 a decade ago that its grid was unready for the cold. 0:10:07.400 --> 0:10:10.400 There was a storm back in twenty eleven. Uh. We 0:10:10.520 --> 0:10:13.400 do see this storm like a black Swan event, is 0:10:13.400 --> 0:10:15.800 how it's being referred to a once in a century storm. 0:10:16.320 --> 0:10:19.440 But but but Texas, the critics say, Texas knew this 0:10:19.440 --> 0:10:22.720 could happen, right, Well, that's exactly right. So it actually 0:10:22.800 --> 0:10:25.960 wasn't even just two thousand eleven. Uh. Federal regulators have 0:10:26.000 --> 0:10:30.720 been warning repeatedly UH Texas and other southern states to 0:10:31.440 --> 0:10:34.400 harden their assets and to be better prepared for the cold. 0:10:34.440 --> 0:10:37.840 So two thousand eleven was certainly a big event. It 0:10:37.920 --> 0:10:40.840 wasn't as bad as this time. Temperatures were a little 0:10:40.840 --> 0:10:43.960 bit higher in Texas and New Mexico during two thousand eleven, 0:10:44.160 --> 0:10:48.600 But an incident in nineteen was also very destructive and 0:10:48.679 --> 0:10:51.600 caused the state's first rolling blackout. So you know, even 0:10:51.640 --> 0:10:54.360 if it's uh, you know, not on the on the 0:10:54.360 --> 0:10:59.000 scale of this disaster. Certainly these storms have provided a 0:10:59.000 --> 0:11:03.160 lot of thought for the problems here, and and regulators 0:11:03.160 --> 0:11:07.680 have said, it's a simple matter of weatherizing your assets, uh, 0:11:08.040 --> 0:11:10.880 making sure that you put heating elements and instrumentation panels, 0:11:10.920 --> 0:11:13.439 and that you put you know, thermal protection and insulation 0:11:13.559 --> 0:11:17.720 around pipes and other equipment. Jen really quickly fifteen seconds. 0:11:17.760 --> 0:11:20.560 So do things change going forward as a result of this. 0:11:21.320 --> 0:11:23.640 There's gonna be a lot of investigations and a lot 0:11:23.679 --> 0:11:25.520 of questions where folks are going to be asking that 0:11:25.600 --> 0:11:29.560 exact question, Uh, Governor Perry. Yesterday, former Governor Perry warned 0:11:29.600 --> 0:11:33.880 that the state prefers its free market and uh said he's, uh, 0:11:33.960 --> 0:11:36.640 he doesn't he doesn't support those changes. Yes, yeah for 0:11:36.880 --> 0:11:38.600 me once, shame on, you know, you know this works 0:11:38.640 --> 0:11:41.880 all right, Jen Delowie, thank you so much. Energy environmental 0:11:41.880 --> 0:11:44.800 policy reporter at Bloomberg News joining us from the nation's capital. 0:11:45.040 --> 0:11:49.040 This is Bloomberg Business Week with Carol Messer and Bloomberg 0:11:49.120 --> 0:11:52.959 Quick Takes Tim Stinovic on Bloomberg Radio. All right, we 0:11:53.040 --> 0:11:55.959 are also closely watching bitcoin because man, it seems to 0:11:56.000 --> 0:11:58.559 take out one record after another. Tim. Uh, and we 0:11:58.720 --> 0:12:02.120 just talked about Jeff good Luck now changing his mind, 0:12:02.240 --> 0:12:04.920 seeming to now consider a bitcoin a better trade. He 0:12:04.960 --> 0:12:07.400 tweeted that out. So much going on, all of this 0:12:07.559 --> 0:12:10.240 leading to a micro Reagan reporting online for Bloomberg Business 0:12:10.280 --> 0:12:13.040 Week about the Wall Street skeptics who are sitting up 0:12:13.040 --> 0:12:16.080 and paying attention now. Mike is Bloomberg Market senior editor. 0:12:16.120 --> 0:12:18.240 He's with us on the phone in New Jersey along 0:12:18.240 --> 0:12:20.920 with Bloomberg Business Week editor Joe Webber on the access 0:12:20.960 --> 0:12:23.800 line in Brooklyn. How the tides have changed a little 0:12:23.800 --> 0:12:27.080 bit here. It seems like Joel, Yeah, well that and 0:12:27.120 --> 0:12:29.680 that was sort of uh, what cut our attention is? 0:12:30.240 --> 0:12:33.720 You know, just it seems like comes in in waves 0:12:33.760 --> 0:12:36.920 and fits and starts and takes years, but like slowly. 0:12:36.960 --> 0:12:39.920 It just seems like bitcoin has made this kind of 0:12:40.200 --> 0:12:45.160 relentless progress and turned skeptics into believers or at least 0:12:45.240 --> 0:12:48.840 at least um less skeptics maybe whatever that whatever that 0:12:48.880 --> 0:12:52.559 word is um And you know, we watched it happen 0:12:52.640 --> 0:12:55.120 with with Tesla starting to talk about it in a 0:12:55.160 --> 0:12:58.360 different way and corporate balance sheets starting to maybe have 0:12:58.440 --> 0:13:01.120 the prospect of it. Of my mean suddenly becoming a 0:13:01.160 --> 0:13:04.880 place that might try and get bring bitcoin onto its books. 0:13:04.920 --> 0:13:07.319 And it just kind of turned to Mike and say, like, 0:13:07.640 --> 0:13:10.199 you know what, what's happening is Is this really happening? 0:13:10.360 --> 0:13:13.880 And what's your take, Mike? Is it is this Bitcoin's moment? 0:13:15.360 --> 0:13:17.840 You know? Joel Uh, Like I wrote, I think a 0:13:17.880 --> 0:13:21.320 lot of people in the sort of traditional financial industry 0:13:21.440 --> 0:13:24.520 roles had kind of hoped bitcoin was a fad and 0:13:24.640 --> 0:13:26.480 so we go away and they wouldn't really have to 0:13:26.520 --> 0:13:29.480 worry about it. And I think this month and maybe 0:13:29.480 --> 0:13:33.120 the last few weeks is really destroyed anyone's ability to 0:13:33.240 --> 0:13:36.319 just ignore it from now on. As you point out, uh, 0:13:36.960 --> 0:13:39.959 Tesla is scoring some of its cash on its bound 0:13:40.040 --> 0:13:44.200 sheet in the form of bitcoin. Uh. Another software company 0:13:44.280 --> 0:13:48.920 micro strategy family famously doing the same. Um. Now Pestils 0:13:48.920 --> 0:13:52.640 in the SMP five micro strategy is actually now big enough. 0:13:52.720 --> 0:13:56.040 It's bigger than some companies in the SMP five. D Uh, 0:13:56.120 --> 0:13:58.680 some of the smaller companies, so you know, technically could 0:13:58.760 --> 0:14:02.480 be added some nights. So as an investor who was 0:14:02.559 --> 0:14:05.400 kind of trying to ignore bitcoin and hope the fact 0:14:05.400 --> 0:14:09.119 that goes away, you really can't do that anymore. Because 0:14:09.320 --> 0:14:12.720 it's starting to, as you point out, get ingrained in 0:14:12.760 --> 0:14:15.800 the traditional financial system. And I think, you know, the 0:14:15.840 --> 0:14:20.920 big question is will other companies, will other corporate treasures 0:14:20.920 --> 0:14:24.760 and CFOs be inspired to do what Elon Musk and 0:14:24.800 --> 0:14:28.720 Michael Sailor at micro Strategy are doing and actually store 0:14:28.800 --> 0:14:33.160 some of their retained earnings their cash in bitcoin. Because yeah, 0:14:33.280 --> 0:14:36.200 there's a common complaint that it's your typical way of 0:14:36.200 --> 0:14:38.880 holding cash, like investments on your balance sheet is through 0:14:38.880 --> 0:14:42.640 treasury bills. They're not yielding anything. So as as Michael 0:14:42.640 --> 0:14:45.360 Seller puts it, it's like it's like having a melting 0:14:45.440 --> 0:14:47.560 ice cube on your balance sheet when you look at 0:14:47.560 --> 0:14:51.320 all this asset price inflation elsewhere, and to just be 0:14:51.400 --> 0:14:54.560 holding cash that's fielding nothing is an issue for a 0:14:54.560 --> 0:14:56.280 lot of treasures, So I think, you know, I'm not 0:14:56.320 --> 0:14:58.680 sure how many will follow their lead, Carol, but I 0:14:58.800 --> 0:15:01.800 think the dis action that's going to happen to be fair. 0:15:01.920 --> 0:15:04.160 We've talked to Michael Sailor on air. I mean, he 0:15:04.320 --> 0:15:07.880 is all in big time on bitcoin, So just like 0:15:08.360 --> 0:15:11.560 put that out there. Um, Mike, why why do you 0:15:11.720 --> 0:15:14.560 think bitcoin is so polarizing? I mean, I mean, you 0:15:14.600 --> 0:15:18.560 have people who are like so passionate about it. They 0:15:18.600 --> 0:15:21.520 say it's the future, this is going to change everything, 0:15:21.520 --> 0:15:24.480 and then you have people who refuse to acknowledge that 0:15:24.520 --> 0:15:28.520 it has any value. So I think it's because, you know, 0:15:28.520 --> 0:15:32.440 if you came up studying finance. Uh, in the traditional finance, 0:15:33.040 --> 0:15:35.720 you always look at an investment as far as okay, 0:15:35.840 --> 0:15:37.800 what or what's the act and I'm buying here? Does 0:15:37.800 --> 0:15:40.720 it have a cash flow attached to it and therefore 0:15:40.760 --> 0:15:44.440 a yield? Or if it's a currency, what's it backed by? 0:15:44.720 --> 0:15:48.120 Backed by a stable government with strong finances or a 0:15:48.120 --> 0:15:50.520 weak government with a huge deficit that's going to keep 0:15:50.560 --> 0:15:53.240 trying money? You know, the same thing in the bottom market. 0:15:53.440 --> 0:15:57.080 What's the likelihood that this yield I'm getting he is sustainable? 0:15:57.480 --> 0:16:00.080 You know, is the nation or the company gun a 0:16:00.160 --> 0:16:03.760 go bust? There was bitcoin there's really nothing like that 0:16:03.840 --> 0:16:07.160 to analyze. I mean, is it is just a you 0:16:07.240 --> 0:16:10.080 often hear the knock Uh it's called a digital pool 0:16:10.120 --> 0:16:12.440 of kind of referring back to the Dutch pool of 0:16:12.600 --> 0:16:16.320 craze of the seventeenth century. UM, meaning it's just kind 0:16:16.320 --> 0:16:20.800 of a fad, a market mania that people get excited about. UM. 0:16:21.320 --> 0:16:25.240 I think that sentiment is is changing fastly now because 0:16:25.400 --> 0:16:29.280 of this corporate interest. The notion that does the number 0:16:29.320 --> 0:16:33.200 of bitcoins is limited, the supply is limited where in 0:16:33.280 --> 0:16:36.680 currency markets, um, you know, the money supply keeps on 0:16:36.760 --> 0:16:39.800 increasing as far as U S dollars because of what 0:16:39.920 --> 0:16:42.720 the FET is doing. UM. So this notion that it 0:16:42.840 --> 0:16:47.400 you know, it's sort of a way to preserve capital. UH, 0:16:47.560 --> 0:16:50.480 that will has more of a chance at least in 0:16:50.520 --> 0:16:56.000 the believer's eyes, of appreciating in value than depreate depreciating. UM. 0:16:56.080 --> 0:16:59.160 It's really starting to click with a lot of people. 0:16:59.320 --> 0:17:02.480 And I think that's why, you know, it's not just 0:17:03.000 --> 0:17:05.879 Elon Musk and and UH and micro strategy, but you know, 0:17:06.359 --> 0:17:09.720 the tide is really turning where people see the the 0:17:09.920 --> 0:17:12.320 value in this um. You know. I think you could 0:17:12.359 --> 0:17:14.640 be say, wake up one day and see a big 0:17:14.720 --> 0:17:16.920 drop in the in the value of bitcoin and maybe 0:17:16.920 --> 0:17:20.639 that notion such you know, we'll have a big setback. UM. 0:17:20.760 --> 0:17:23.320 But for now, when when all it's doing is going up, 0:17:23.400 --> 0:17:25.680 I think it's just lowering more more and more people 0:17:25.880 --> 0:17:30.240 into sort of the true believer camp of bitcoin. Yeah, 0:17:30.520 --> 0:17:34.160 you know, Mike, I think the other element and alluded 0:17:34.200 --> 0:17:36.439 to this is just that this idea of like, you know, 0:17:36.480 --> 0:17:39.360 we call it a cryptocurrency and that you know, it's 0:17:39.480 --> 0:17:41.840 kind of been you know, like for lack of a 0:17:41.840 --> 0:17:44.320 better phrase. But in many ways, it's like it's starting 0:17:44.359 --> 0:17:46.679 to look less like a real currency than it is 0:17:46.760 --> 0:17:49.800 just a store of value in in a in a 0:17:49.840 --> 0:17:53.080 stranger sense, it's it's actually, you know, not something that 0:17:53.160 --> 0:17:55.960 we might be you know, paying our phone bills with 0:17:56.119 --> 0:17:58.360 or you know, I guess you could buy your your 0:17:58.400 --> 0:18:02.040 your next tesla with a supposedly, but it does not 0:18:02.160 --> 0:18:06.440 seem like it's a transactional thing so much as something else. Um, 0:18:06.640 --> 0:18:09.280 what do you think of that? Just quickly? My think, Yeah, 0:18:09.320 --> 0:18:11.720 I don't think the appeal is still yet in the 0:18:11.800 --> 0:18:15.280 it's use as a means of transaction. I mean, you 0:18:15.280 --> 0:18:18.760 remember a few years ago when bitcoin first uh started 0:18:18.760 --> 0:18:21.520 getting hot. I mean, I guess it's several years ago now. Also, 0:18:21.560 --> 0:18:23.719 it's the companies, you know, we're saying, oh, you can 0:18:23.760 --> 0:18:26.320 buy our products or service. You can buy pizza with bitcon, 0:18:26.359 --> 0:18:30.080 you can buy how many people did um write? I 0:18:30.080 --> 0:18:32.000 think it really is just the hope that this is 0:18:32.040 --> 0:18:37.959 an appreciation. This is Bloomberg Business Week with Carol Messer 0:18:38.160 --> 0:18:43.560 and Bloomberg quick takes Tim Stinovic on Bloomberg Radio. Tom, Tom, 0:18:43.720 --> 0:18:46.399 how did I do that? Hey? That's my dad. Okay, 0:18:46.400 --> 0:18:49.440 well that's nice. Sorry, sorry, my Tim's man. Tim. Anything 0:18:49.480 --> 0:18:52.439 going on in Washington today, Yeah, a little bit. You know, 0:18:52.480 --> 0:18:54.479 it's it's get It's all the rage on Twitter. It's 0:18:54.520 --> 0:18:57.639 what people are tweeting about right now. It is the hearing, 0:18:57.720 --> 0:19:00.000 of course that we are talking about happening in Washington 0:19:00.040 --> 0:19:02.960 and the game stop hearing. Yeah, it's been a big 0:19:02.960 --> 0:19:05.120 deal and we've been following it. Uh, and we talked 0:19:05.119 --> 0:19:07.400 about it earlier, you know, the CEO of Robin Hood, 0:19:07.680 --> 0:19:11.480 CEF Citadel, CEE of Melvin Capital, the co founder read it. 0:19:11.520 --> 0:19:14.120 I mean, there's a lot going on. So let's get 0:19:14.160 --> 0:19:17.159 to somebody who's been following it very closely. Larry tab Is, 0:19:17.200 --> 0:19:21.439 Bloomberg Intelligence head and director of Market Structure Research, on 0:19:21.480 --> 0:19:24.439 the phone from Cape Cod, Massachusetts. Larry, good to have 0:19:24.520 --> 0:19:27.720 you here with Tim and myself. So what's jumping out 0:19:27.760 --> 0:19:30.960 for you besides the heated exchange between the lawmakers and 0:19:31.040 --> 0:19:35.080 the witnesses. Great to be here, guys. Um, Yeah, it's 0:19:35.080 --> 0:19:38.000 an interesting discussion. It's really interesting to you know, to 0:19:38.080 --> 0:19:43.800 hear what the lawmakers take is on this whole issue. UM. 0:19:43.880 --> 0:19:46.840 That said, it's really difficult to get any serious points 0:19:46.840 --> 0:19:49.080 across because everybody only has a couple of minutes, So 0:19:49.119 --> 0:19:53.000 everybody's trying to push everybody to a guest or no answer. Uh, 0:19:53.040 --> 0:19:56.040 two questions that really deserve a lot more than yes 0:19:56.119 --> 0:19:58.760 or no. That said, finally, in the last couple of minutes, 0:19:59.040 --> 0:20:01.960 there have been some issues and uh payment for the 0:20:02.000 --> 0:20:05.800 water flow and price improvement and issues. Really I think 0:20:05.960 --> 0:20:09.159 that really mean a lot to investors. Hey, Larry, does 0:20:09.200 --> 0:20:11.479 anything come of this? You know? I heard a lot 0:20:11.480 --> 0:20:14.040 of the questions about payment for order flow uh and 0:20:14.200 --> 0:20:18.080 and questions about the actual execution of these trades. But 0:20:18.800 --> 0:20:20.560 what happens on the other side of this, I mean, 0:20:20.680 --> 0:20:26.200 is there any regulatory action that's taken? Good question? Uh. 0:20:26.280 --> 0:20:30.320 Reporters said they're gonna be two more hearings at least 0:20:30.320 --> 0:20:32.840 on this, so I'm not sure that anything's going to 0:20:32.960 --> 0:20:35.719 come directly out of this. Um. You know, there were 0:20:35.760 --> 0:20:39.080 some discussions around all different things, everything from you know, 0:20:39.200 --> 0:20:42.119 is this manipulation, what's going on with paying Florida flow? 0:20:42.440 --> 0:20:47.119 People were talking about transaction taxes. Hopefully nothing UM. You know, 0:20:47.200 --> 0:20:49.560 substantial happens from this meeting, So I'm not sure we 0:20:49.680 --> 0:20:53.120 really got it at the details, enough details to really 0:20:53.119 --> 0:20:55.480 get at the heart of the matter. But we'll see 0:20:55.520 --> 0:20:58.160 what happens there for the next two two hearings. All right, Larrys. 0:20:58.160 --> 0:20:59.800 So I've got to ask you, does anything need to 0:20:59.800 --> 0:21:03.199 have up in Like It's interesting I've been hearing some 0:21:03.240 --> 0:21:05.800 of the guests on Bloomberg Radio the analysis and is 0:21:05.840 --> 0:21:07.959 it just the big guys kind of ticked off at 0:21:07.960 --> 0:21:11.119 the little guys for figuring out how too smart to 0:21:11.200 --> 0:21:16.159 do smart trading? Yeah? You know, I think, you know, 0:21:16.840 --> 0:21:19.240 there there are some things that we should be putting in, 0:21:19.640 --> 0:21:22.639 you know, on the on the side and really looking 0:21:22.680 --> 0:21:26.000 more into like, you know, Israel show really, you know, 0:21:26.520 --> 0:21:28.919 could it be tightened up in terms of short selling, 0:21:29.560 --> 0:21:35.639 transparency and disclosure? UM? Is market manipulation? Can it really occur? 0:21:35.960 --> 0:21:38.920 You know through bullet and boards? And you know, you 0:21:39.160 --> 0:21:43.600 usually when we think about market market manipulation, it's usually 0:21:43.680 --> 0:21:47.119 by a very limited group of people. UM. But what 0:21:47.200 --> 0:21:51.720 happens when it's a bunch of little investors completely distributed? Um? 0:21:51.760 --> 0:21:55.080 And how does that? How does that work? UM? Payment 0:21:55.160 --> 0:21:58.159