Speaker 1: Bloomberg Audio Studios, podcasts, Radio News.
Speaker 2: And The Savannas this morning speak at Johnson's Uphill Battle.
Speaker 3: Thevik and I talked last night about almost midnight, and
Speaker 3: he said, look, I get it. He said, we understand
Speaker 3: you're in an impossible position. Everybody knows that. Remember, guys,
Speaker 3: we still have just a razor thin margin of Republicans,
Speaker 3: so any bill has to have Democrat votes. They understand
Speaker 3: the situation. They said, it's not directed to you, mister speaker,
Speaker 3: but we don't like this spending. I said, guess what, Fellas,
Speaker 3: I don't either. We got to get this done because
Speaker 3: here's the key. By doing this, we are clearing the decks,
Speaker 3: and we are setting up for Trump to come in
Speaker 3: browing back with the America First Agenda.
Speaker 2: So here's the light. Say's President elect Donald Trump and
Speaker 2: Vice President elect jd Event supposing a bipartisan deal to
Speaker 2: temporarily fund the US government and avoid a shutdown. Right, sing,
Speaker 2: Republicans must get smart and tough. If Democrats threaten to
Speaker 2: shut down the government unless we give them everything they want,
Speaker 2: then call their bluff. Former House Majority Leader Eric Hansich
Speaker 2: and just now for more, Eric and Mornick Good morning.
Speaker 2: How difficult is it going to be to change the
Speaker 2: establishment in Washington.
Speaker 3: D C.
Speaker 4: Well, you know, you're beginning to see I think a
Speaker 4: taste of what is to come over the next two years,
Speaker 4: because this is just a real desire to want to
Speaker 4: you know, sort of clean up shop and to get
Speaker 4: on with a much cleaner, more focused pro growth agenda
Speaker 4: in DC. And you know the problem is, even on
Speaker 4: these spending bills, if Republicans have majorities in both houses,
Speaker 4: which will be the case in January, you still are
Speaker 4: relying on Democrats to get things done given the rules
Speaker 4: in the Senate. And you know when you see the
Speaker 4: activity online from Elon Musk and then the follow up
Speaker 4: from President Trump, you know, it makes it really tough.
Speaker 4: I mean because it's it defies the by partisanship that
Speaker 4: is needed to get things done.
Speaker 2: But spending taxpayers money shouldn't be easy. It should be tough.
Speaker 2: And that's the problem that a lot of people have
Speaker 2: got with this. They'll use technical terms like continuing resolution,
Speaker 2: this is just business as usual. Then it goes through
Speaker 2: all the other things that's stuffed into it, and the
Speaker 2: general public sits there and says, what's this about?
Speaker 4: Right? And I think that's where certainly the objection came
Speaker 4: from from Elon Musk and others to say, wait a minute,
Speaker 4: this was a continuing resolution, which is just a stop
Speaker 4: gap measure. Then let's just get over the hump so
Speaker 4: the government can continue to operate, but let's not do
Speaker 4: anything else. And this is the difficulty when you've got
Speaker 4: a margin the way you do in the House, and
Speaker 4: speak of Johnson's dealing with you need the Democrats to
Speaker 4: help you because you are not enjoying unanimity on the
Speaker 4: part of the Republicans.
Speaker 1: That's the issue that said this was led by Mike Johnson.
Speaker 1: Mike Johnson started the tip for tap by that ten
Speaker 1: billion dollar provision for farmers. Look, there's a bigger issue here,
Speaker 1: which is ultimately some of the bigger conversations about entitlements,
Speaker 1: about certain healthcare issues, about other big policies people aren't
Speaker 1: willing to have in an honest way, how much do
Speaker 1: you think that that ultimately is the questions You've got
Speaker 1: to kind of gussy everything up with all of these
Speaker 1: cute little tricks and get something through to just not
Speaker 1: do anything.
Speaker 4: Well, the discussions that they're having around this Continuing Resolution
Speaker 4: bill are what's called discretionary funding. It is not what
Speaker 4: you're saying. The entitlements and now, as you rightly point to,
Speaker 4: that is the real problem and it's causing disffortunately our
Speaker 4: deficit and the growing debt. There's no question, but President
Speaker 4: Trump has said we're not touching that.
Speaker 1: Now.
Speaker 4: What I hope is with Elon Mosk and Vivek Ramswami
Speaker 4: overseeing this doge effort, although it's not technically part of government,
Speaker 4: it can have a lot to do with the actual
Speaker 4: debate on policy, and I hope they're going to come
Speaker 4: up with something to define the debate and hopefully it'll
Speaker 4: be clean up the way that these entitlements work so
Speaker 4: we can begin to see how we can reform those,
Speaker 4: because that's going to solve our debt and deficit.
Speaker 1: You're at an amazing vantage point understanding how the sausage
Speaker 1: is made, having a lot of contacts, and also seeing
Speaker 1: the business world react and being a part of that.
Speaker 1: And I'm just wondering how much the official that markets
Speaker 1: have been rallying on is jeopardized by the dysfunction of
Speaker 1: trying to fix something that feels very, very broken.
Speaker 4: So what I can tell you at MOLIS We are
Speaker 4: seeing our clients pick up in a big way, the dialogue,
Speaker 4: their deals being dusted off, those that have been put
Speaker 4: on the shelf over the last several years, in fact,
Speaker 4: turning into we've even seen a pickup in the acceleration,
Speaker 4: if you will, of completion of deals. And I think
Speaker 4: it's all about the optimism coming from deregulation, the fact
Speaker 4: that we're going to have an administration that is not
Speaker 4: an adversary to a pro growth agenda into business. And
Speaker 4: I think that just tells you where we've been in
Speaker 4: this country. You know, we have had and suffered a
Speaker 4: negative you know, it has been almost a war on
Speaker 4: a growth agenda over the last four years under Joe Biden.
Speaker 4: And so I think that's ultimately going to avail over
Speaker 4: any doubts about whether Washington in the end will get
Speaker 4: something done, because I still sit here today and say
Speaker 4: they will get something done to fund the government.
Speaker 2: Compare the mood to that in Europe. How different is
Speaker 2: it right now? People have fired up about America into
Speaker 2: next year and beyond, and by people I mean consumers.
Speaker 2: Confidence is up, businesses confidence is up. Compare that to
Speaker 2: Europe right now.
Speaker 4: Amazing. And I spent last week, all week in Europe,
Speaker 4: and it is amazing the difference of being here looking
Speaker 4: at the optimism, the momentum we've got is reflecting in
Speaker 4: the valuations of assets here, and you can see the
Speaker 4: unleashing of not only strategics here, but you know, our
Speaker 4: sponsor clients, you know, everyone is sort of you can
Speaker 4: really feel it in Europe. Everybody's looking here. I mean,
Speaker 4: that's the amazing thing because there is a huge difference
Speaker 4: in valuation between on assets here versus Europe. And you
Speaker 4: would think, well, that would push people to go look
Speaker 4: for bargains over there.
Speaker 2: Uh huh.
Speaker 4: You've got investors and folks looking here. It's everyone's coming
Speaker 4: here is striking. And now look their political situation also
Speaker 4: is now the additional somebling blocked that they've got to
Speaker 4: deal with, which doesn't bode well.
Speaker 2: Yeah, whatever the find looks like down in Washington, d C.
Speaker 2: I think it should be very clear on a relative basis,
Speaker 2: the mess is elsewhere Canada, Germany, France, the list goes
Speaker 2: on and on and on when it comes to political instability.
Speaker 1: And it's not necessarily because those politicians are that much
Speaker 1: worse than the US, but it's that the US corporate
Speaker 1: sector has managed to outperform again and again and innovate,
Speaker 1: and ultimately that's what it's going to have to come
Speaker 1: back to.
Speaker 4: I'll always say this though in our country, you look
Speaker 4: at the size of government as a percentage of GDP,
Speaker 4: we are much much smaller, even though we as a
Speaker 4: limited governor conservative. You compare that too through the EU
Speaker 4: and they're fifty.
Speaker 2: Percent, France pushing sixty. Eric is good to see it, buddy,
Speaker 2: Great to be all those to you as well. Eric
Speaker 2: Canter there, the former House Charcy leader