WEBVTT - Michael Milken

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<v Speaker 1>There's no one more closely associated with junk bonds than

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<v Speaker 1>Michael Milkin, who in the nineteen seventies realized that investors

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<v Speaker 1>could make more money buying bonds from companies with lower

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<v Speaker 1>credit ratings than they could from companies with triple A

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<v Speaker 1>rated bonds. Through this realization, Milken and the firm he

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<v Speaker 1>joined out of graduate school, Drexel Burnham Lambert, revolutionized the

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<v Speaker 1>way companies and new industries were financed and made Milkin

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<v Speaker 1>and Drexel wealthy beyond their dreams. However, the same competitive

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<v Speaker 1>nature that made Milk and millions ended up hurting him

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<v Speaker 1>in the end. In April of nineteen ninety, after four

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<v Speaker 1>years of investigation and prosecution, Milkin pled guilty to six

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<v Speaker 1>counts of violating securities law, spent one year and ten

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<v Speaker 1>months in prison, and paid a government fine of two

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<v Speaker 1>hundred million dollars, and put an additional four hundred million

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<v Speaker 1>in a fund to compensate investors. Both before and after

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<v Speaker 1>his incarceration, Milkin has been heavily involved in philanthropy and

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<v Speaker 1>now leads the Milk And Institute, among many other organizations.

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<v Speaker 1>He recently sat down with Carlisle Group co founder David Rubinstein.

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<v Speaker 1>They spoke on David Rubenstein's Bloomberg television program Peer to

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<v Speaker 1>Peer Conversations. You signed the giving pledge Green to get

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<v Speaker 1>away half your money. What did your children say about that? Well,

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<v Speaker 1>it's interesting. They've been involved in our philanthropic efforts since

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<v Speaker 1>they were young. And Uh, my wife, Laurie. Lorie defines

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<v Speaker 1>wealth is that she can buy any book she wants. Uh,

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<v Speaker 1>And so I think that's been instilled in our children

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<v Speaker 1>from the very beginning. You met your wife in high school.

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<v Speaker 1>We met in seventh grade, seventh grade, and you've been

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<v Speaker 1>married for how long? Well, we just celebrated our fiftieth

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<v Speaker 1>Winnie anniversary. Okays a professor? Okay, so you didn't date

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<v Speaker 1>a round when you were in the seventh grade edition? Well,

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<v Speaker 1>and who didn't really? We dated maybe once in the

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<v Speaker 1>ninth grade. But you know, she knew who I was

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<v Speaker 1>and who she was. She was voted in high school

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<v Speaker 1>the most likely to succeed. So I wanted to hang

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<v Speaker 1>around here as much as I did. But what were you?

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<v Speaker 1>You weren't voted that I was voted the most spirited

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<v Speaker 1>friendliest at that time. So you grew up in Los Angeles?

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<v Speaker 1>Is that right? Yes. My father was a lawyer and

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<v Speaker 1>an accountant, and my mom was a homemaker, and yes

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<v Speaker 1>I got to work. Anyone who's the child of a

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<v Speaker 1>person has his own accounting firm. You don't you get

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<v Speaker 1>to work on balance sheets and tax returns when you're eight?

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<v Speaker 1>Did you at the early ages where you are pretty

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<v Speaker 1>good student? Well? I was a very good student. But

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<v Speaker 1>what they did instill on all of us is that

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<v Speaker 1>for us to have a meaningful life, at least everyone

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<v Speaker 1>had to have a chance in a meaningful life. And

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<v Speaker 1>if our children or our children's children, we're going to

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<v Speaker 1>have a meaningful life or a good life, then all

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<v Speaker 1>children had to feel they had that opportunity, and that

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<v Speaker 1>was instilled with us. So you go to Berkeley and um,

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<v Speaker 1>you're gonna major in science and be a scientist and

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<v Speaker 1>so forth. What happened? Why did you change? On August eleven,

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<v Speaker 1>what became known as the Watts Riots occurred, So I

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<v Speaker 1>didn't have to go to Vietnam. Their armed personnel carriers

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<v Speaker 1>on the street, the city is on fire. And it

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<v Speaker 1>took a while for me to convince my dad to

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<v Speaker 1>let me go and understand what was happening, because I

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<v Speaker 1>was convinced I knew everything, and I met a young

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<v Speaker 1>African American man who had sitting outside looking in a

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<v Speaker 1>building that had burned down that he worked in. No

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<v Speaker 1>one would give any financial support to his father or

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<v Speaker 1>to him because he was an African American. And it

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<v Speaker 1>struck me that I thought I knew everything and now

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<v Speaker 1>everything that I believed a chance to succeed based on

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<v Speaker 1>your ability. No, w your parents were not we went

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<v Speaker 1>to school, not your religion, not we were there a

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<v Speaker 1>man or a woman, that this individual had made a

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<v Speaker 1>irrational decision watching the burning down of the building that

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<v Speaker 1>employed him, and that he felt he wasn't part of

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<v Speaker 1>the American chain. So I went back to Berkeley, changed

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<v Speaker 1>my major to finance in business uh and was determined

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<v Speaker 1>to change that so that everyone felt that they would

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<v Speaker 1>have access to capital based on their ability. Majored in

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<v Speaker 1>finance and then went right to business school at at

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<v Speaker 1>at Wharton. Is that right, that's correct. You have the

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<v Speaker 1>highest grades in the history of the school. More or less,

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<v Speaker 1>there's that that happened. Yes, Okay, So you graduate from

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<v Speaker 1>Wharton in nineteen seventy and you're working for Drexel, which

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<v Speaker 1>is a leading prestigious firm. Then, but um it is

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<v Speaker 1>said that you discovered the idea or helped to propel

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<v Speaker 1>the idea of that investing in and what's called high

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<v Speaker 1>yield bonds was a better investment than investing in UM

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<v Speaker 1>let's say investment grade bonds. Is that more or less?

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<v Speaker 1>It is. One of the ways I was able to

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<v Speaker 1>convince the firm was I took a look at the

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<v Speaker 1>stocks they were recommending, and most of the companies were

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<v Speaker 1>non investment grade. So here they're suggesting you invest in

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<v Speaker 1>the equity of businesses, but not suggesting you could buy

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<v Speaker 1>preferred stocks other part of the capital structure. It's you know,

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<v Speaker 1>if we look at it today, David, you know the

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<v Speaker 1>rating agencies about the lowest you can be rated before

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<v Speaker 1>you go bankrupt, and then you get a D. Is

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<v Speaker 1>the triple C. Well, let's think of three firms that

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<v Speaker 1>are in the news today. Uber companies worth tens of

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<v Speaker 1>billions of dollars, doesn't have a lot of debt relative

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<v Speaker 1>to its equity, Well, it's rated triple C. Your your

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<v Speaker 1>talking about Tesla doesn't have a lot of debt relative

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<v Speaker 1>to its equity. It's rated triple C. And or you

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<v Speaker 1>can go to we work the rated triple C. So

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<v Speaker 1>what what I discovered was quite often the future and

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<v Speaker 1>credit is rated low even though it's the future, and

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<v Speaker 1>the real risk lies often in companies that we think

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<v Speaker 1>of his establishment or have paid dividends for a long time.

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<v Speaker 1>All Right, So you're doing reasonably well living in Philadelphia

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<v Speaker 1>and you go up to New York. You're commuting back

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<v Speaker 1>and forth. Well, the person I went to work for,

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<v Speaker 1>who is the chairman, got in a serious accident, and

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<v Speaker 1>so they asked me to go to New York and

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<v Speaker 1>set up the bond department in New York for the firm.

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<v Speaker 1>So I had my two and a half hour commute

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<v Speaker 1>each way. And you're doing that at what age were you?

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<v Speaker 1>I was twenty four. You're twenty four years old, and

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<v Speaker 1>they're having you set up their operation to lead their

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<v Speaker 1>effort in New York. Yes, okay, did you like try

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<v Speaker 1>to look older than twenty four? You know, you know

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<v Speaker 1>it's funny you say that, David. And in nineteen seventy four,

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<v Speaker 1>I'm in hard for giving this talk uh to the

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<v Speaker 1>insurance companies, and a person said, you know, we have

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<v Speaker 1>a lot of young people coming up here. We generally

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<v Speaker 1>don't like to listen to anyone under thirty. I said,

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<v Speaker 1>I fully understand that myself, And so I was thirty

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<v Speaker 1>for a number of years. You know, so you told

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<v Speaker 1>people you were thirty. Okay. So, um, you ultimately your

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<v Speaker 1>father comes down with cancer melanoma, and you decide you'd

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<v Speaker 1>want to move back to be closer to him. So

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<v Speaker 1>you went to people at Drexel and said, I'm I'm

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<v Speaker 1>moving the operation to l A. Whether you like it

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<v Speaker 1>or not, or is that how it worked? This was

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<v Speaker 1>an unusual period of time. Um, all these theories that

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<v Speaker 1>I had at Wharton and at Berkeley, everything that I

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<v Speaker 1>had studied for from six to seventy four, I was

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<v Speaker 1>able to apply and all these theories turned out to

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<v Speaker 1>be true, and the modern capital markets began. But my

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<v Speaker 1>mother in law and had breast cancer and my father

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<v Speaker 1>had melanoma, and I could not solve the melanoma problem

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<v Speaker 1>from my father. So I didn't really get to Basque

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<v Speaker 1>and the son of your theories and finance and markets

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<v Speaker 1>and change that occurred because I now faced really the

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<v Speaker 1>first problem in my life that I could not solve.

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<v Speaker 1>My father was dying, and I made the decision. We

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<v Speaker 1>had two young children that they needed to meet my

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<v Speaker 1>father and spend time with him before he died. And

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<v Speaker 1>therefore I was either going to take a sabbatical or

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<v Speaker 1>I was going to move the whole department to Los Angeles. Okay,

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<v Speaker 1>so everybody moves out to Los Angeles and they fall

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<v Speaker 1>in love with the California lifestyle, I guess, and they're

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<v Speaker 1>probably not wearing ties to work or anything like that.

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<v Speaker 1>Is that true? Or well, they're not wearing ties to work.

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<v Speaker 1>But you know, I had the clock set on New

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<v Speaker 1>York times, so when you came in, if you came

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<v Speaker 1>in at four and said seven, yeah, you know, psychologically

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<v Speaker 1>he gives you a little boots you have to get

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<v Speaker 1>up at two to do that or something three. But

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<v Speaker 1>and then but then at four o'clock you sent them

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<v Speaker 1>back to l Any time, you get your second win,

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<v Speaker 1>so you get him back to last. So somebody wanted

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<v Speaker 1>to start a new company, like Ted Turner or Rupert

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<v Speaker 1>Murdoch or John Malone, they had to come to somebody

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<v Speaker 1>like you to get money, and you would give them

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<v Speaker 1>hi yel bonds. Can you explain how you kind of

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<v Speaker 1>invented hi yel bonds for people to get new companies

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<v Speaker 1>off the ground as opposed to traditional today venture capital.

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<v Speaker 1>I would take you back to seventy four. So what

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<v Speaker 1>happened in seventy The banking system had to save itself

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<v Speaker 1>growth companies. They were denied capital in this period of time,

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<v Speaker 1>and therefore, once you saw the performance, the decision was,

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<v Speaker 1>you don't want to rely on your financial institution for

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<v Speaker 1>access to capital, and so to de risk America, to

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<v Speaker 1>de risk the entire system. You want to have ten thousand,

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<v Speaker 1>a hundred thousand institutions like your own at Carlisle, who

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<v Speaker 1>could invest. You don't want to be dependent on a

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<v Speaker 1>handful of banks. In night, when the Asian crisis started

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<v Speaker 1>in Thailand, there were five banks that got in trouble,

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<v Speaker 1>but they were providing the capital to everyone in the country.

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<v Speaker 1>So to understand the future, So if cable is the

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<v Speaker 1>future industry, of course it's going to be rated very

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<v Speaker 1>low at the beginning. But if you can find the

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<v Speaker 1>most talented people and give them capital to grow, and

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<v Speaker 1>that was really the mixture. Let us go find people

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<v Speaker 1>that are talented. So when you mentioned Rupert Murdoch, Rupert

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<v Speaker 1>wanted to build a company. His passion for what he's done.

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<v Speaker 1>He almost lost his company when he was in school

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<v Speaker 1>in England and his father died and adelaide and they

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<v Speaker 1>tried to take his family company. So he remembered that.

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<v Speaker 1>But he wanted to build something. Ted Turner wanted to

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<v Speaker 1>build something. And so you're interacting Craig McCall. His family

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<v Speaker 1>was in cable, was in radio, was in television. They

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<v Speaker 1>were willing to give all that up for seller. You

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<v Speaker 1>wanted to find that individual who had passion for what

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<v Speaker 1>they were doing, and if you believed in them, finding

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<v Speaker 1>great people on back him is obviously one of the

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<v Speaker 1>great decisions. And so bringing capital to them they might

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<v Speaker 1>be low rated. And there was only five companies in

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<v Speaker 1>America raided investment grade Sea. You can imagine, I'm coming

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<v Speaker 1>to Wall Street. I have umpteen million companies and everyone

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<v Speaker 1>else is focused on five and those five hundred don't

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<v Speaker 1>create jobs. Did you ever have somebody come to you

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<v Speaker 1>if you didn't finance them and they actually turned out

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<v Speaker 1>to be successful? Ever later that ever happened? Or I'm

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<v Speaker 1>sure there wasn't, But there were plenty where the idea

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<v Speaker 1>didn't make any sense, you know, I remember we had

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<v Speaker 1>a presentation on investing in in an oil of drilling

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<v Speaker 1>business and an oil exploration business, and they brought them

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<v Speaker 1>in and we wanted to see their data. And about

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<v Speaker 1>an hour into the meeting, I asked them what technique

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<v Speaker 1>they use close oology. And I think one on things

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<v Speaker 1>I've discovered over the years, if you don't understand something,

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<v Speaker 1>ask what it is. A lot of people don't ask,

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<v Speaker 1>they don't want to show they don't know. But I

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<v Speaker 1>had never heard of close oology. And so their drilling

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<v Speaker 1>technique is they see where others drill and they get

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<v Speaker 1>as close as possible. There's no there's no geowag gee,

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<v Speaker 1>there's nothing going on. So we decided not to finance

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<v Speaker 1>that company. Okay, so you're at the height of your power.

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<v Speaker 1>You are the most important person in finance in the

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<v Speaker 1>United States, I think most people would probably say at

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<v Speaker 1>the time. And then all of a sudden, some people

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<v Speaker 1>didn't like what you were doing and investigate and ultimately

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<v Speaker 1>you leave Directel at a very important point in your king.

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<v Speaker 1>You might have thought that I was the most important person,

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<v Speaker 1>but you know, I don't view that world. The most

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<v Speaker 1>important person was the person who is responsible for running

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<v Speaker 1>that business. We can help create the capital structure, but

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<v Speaker 1>the other person is responsible for the business. We can

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<v Speaker 1>coach him, we can talk to him. But yes, long

0:13:43.800 --> 0:13:48.640
<v Speaker 1>before I left, in the mid nineteen eighties, there was

0:13:48.800 --> 0:13:53.839
<v Speaker 1>legislation introduced in America to ban the deductibility of entrance

0:13:53.920 --> 0:13:57.040
<v Speaker 1>for non investment great debt. So if you're one of

0:13:57.080 --> 0:14:01.280
<v Speaker 1>these five hundred companies, you're entitled to borrow and duct interests.

0:14:01.320 --> 0:14:04.920
<v Speaker 1>But if you're not, then you're not. We were so

0:14:05.080 --> 0:14:12.320
<v Speaker 1>surprised by the reaction of congressmen or senators. One told

0:14:12.440 --> 0:14:17.679
<v Speaker 1>us that, you know, if their state has to sacrifice

0:14:17.720 --> 0:14:20.560
<v Speaker 1>to get rid of the scourge of junk bonds by

0:14:20.600 --> 0:14:25.000
<v Speaker 1>that time, they were junk bonds, uh, that they would

0:14:25.000 --> 0:14:28.520
<v Speaker 1>sacrifice at that time. So the idea that you were

0:14:28.560 --> 0:14:33.720
<v Speaker 1>going to deny capital two smaller and medium businesses who

0:14:33.720 --> 0:14:36.360
<v Speaker 1>were creating at this time a d percent of all jobs.

0:14:37.520 --> 0:14:41.640
<v Speaker 1>The was kind of reminded me of the nobility in

0:14:41.680 --> 0:14:44.760
<v Speaker 1>England with the mercantile class, where you went to the

0:14:44.840 --> 0:14:48.200
<v Speaker 1>king and said, Okay, we can no longer compete with

0:14:48.280 --> 0:14:52.760
<v Speaker 1>these businesses or the people, so therefore you have to

0:14:52.800 --> 0:14:56.120
<v Speaker 1>deny him access to Camp ultimately left the company and

0:14:56.160 --> 0:14:59.240
<v Speaker 1>you started different businesses, and then you came down with

0:14:59.560 --> 0:15:02.920
<v Speaker 1>prost cancer, you were told that you didn't have very

0:15:02.960 --> 0:15:05.800
<v Speaker 1>long to live? Is that right? It spread through my body.

0:15:06.000 --> 0:15:09.920
<v Speaker 1>So I actually had to lay down for almost twenty

0:15:09.920 --> 0:15:12.760
<v Speaker 1>four hours and think about it. I had lost ten

0:15:13.160 --> 0:15:17.200
<v Speaker 1>relatives to cancer, and so I had to think, Okay,

0:15:17.240 --> 0:15:22.280
<v Speaker 1>what can I do um differently than they did. So

0:15:22.320 --> 0:15:25.800
<v Speaker 1>the first thing I decided was I'd stopped eating anything

0:15:25.840 --> 0:15:31.400
<v Speaker 1>except fruits and vegetables, this idea that maybe something that

0:15:31.480 --> 0:15:36.760
<v Speaker 1>I was eating was accelerating the growth of cancer. Second,

0:15:36.800 --> 0:15:39.720
<v Speaker 1>I reduced stress. I had just come out of an

0:15:39.720 --> 0:15:45.360
<v Speaker 1>extensive stressful period me versus parts of the US government

0:15:46.440 --> 0:15:51.680
<v Speaker 1>and uh, so I started meditation and I had to

0:15:51.720 --> 0:15:56.320
<v Speaker 1>do something different to survive. I went and visited she

0:15:56.600 --> 0:16:03.720
<v Speaker 1>doctors in China, he ers from Russia, which doctors in Africa,

0:16:04.000 --> 0:16:09.280
<v Speaker 1>Indians in the northwest Amazon. Uh what did you conclude

0:16:09.280 --> 0:16:11.800
<v Speaker 1>that any of no more than the western doctors. I

0:16:11.880 --> 0:16:14.600
<v Speaker 1>didn't have a lot of faith in the healers. But

0:16:14.760 --> 0:16:19.480
<v Speaker 1>the one that I embraced was iravade in medicine from India.

0:16:19.720 --> 0:16:22.560
<v Speaker 1>And I moved a doctor and Iravated doctor into my

0:16:22.640 --> 0:16:28.120
<v Speaker 1>house for six months. And the herbs, the meditation, the

0:16:28.320 --> 0:16:34.920
<v Speaker 1>chanting ah and I took these hormones. I felt that

0:16:34.960 --> 0:16:41.120
<v Speaker 1>there was an opportunity here using immunology. UH to change

0:16:41.200 --> 0:16:46.440
<v Speaker 1>my outcoming need to accelerate research. Uh, if I'm going

0:16:46.480 --> 0:16:49.640
<v Speaker 1>to save myself or I'm going to have to change

0:16:50.160 --> 0:16:53.240
<v Speaker 1>how medical research has done. We created camp here and

0:16:53.280 --> 0:16:57.680
<v Speaker 1>the promise was, we're gonna double the money going into

0:16:57.720 --> 0:17:01.400
<v Speaker 1>medical research. We're going to triple the money going fross

0:17:01.880 --> 0:17:06.080
<v Speaker 1>cancer research, and we're gonna increase prostate cancer tenfold. But

0:17:06.160 --> 0:17:11.640
<v Speaker 1>today you you're um in remission. I'm in total suspended

0:17:11.760 --> 0:17:16.359
<v Speaker 1>animation here, but I'm in you know, you could say remission.

0:17:16.960 --> 0:17:23.320
<v Speaker 1>I've now celebrated my year. The death rate from projected

0:17:23.440 --> 0:17:30.440
<v Speaker 1>levels has followed by there's millions of men alive today. Um,

0:17:30.600 --> 0:17:34.840
<v Speaker 1>I can see the end of cancer as a cause

0:17:34.880 --> 0:17:38.199
<v Speaker 1>of death with treatment. The changes that have occurred in

0:17:38.280 --> 0:17:42.639
<v Speaker 1>bioscience are so dramatic, particularly in achnology. What is it

0:17:42.680 --> 0:17:45.760
<v Speaker 1>that you did that helped to change the way we

0:17:46.040 --> 0:17:49.040
<v Speaker 1>finance health or look at it? I would say, first

0:17:49.680 --> 0:17:54.000
<v Speaker 1>you collected data. If you're going to accelerate science, it

0:17:54.040 --> 0:17:58.160
<v Speaker 1>has to be based on basic science. But first data,

0:17:58.560 --> 0:18:03.360
<v Speaker 1>let's check your micro am let's sequence. Uh, your disease

0:18:03.400 --> 0:18:06.479
<v Speaker 1>if you have it, and then let's give you something

0:18:06.520 --> 0:18:09.120
<v Speaker 1>that will work for you. We talked about health. Are

0:18:09.160 --> 0:18:13.240
<v Speaker 1>you an exerciser? Yes, I would say it's two thirds

0:18:14.000 --> 0:18:18.439
<v Speaker 1>what goes in and one third the exercise. And what

0:18:18.480 --> 0:18:20.399
<v Speaker 1>do you what do you are? Your sports person or

0:18:20.480 --> 0:18:22.840
<v Speaker 1>you have just jim? What do you do well? Here

0:18:22.960 --> 0:18:26.040
<v Speaker 1>was one of my problems. Uh, when I was twelve.

0:18:26.240 --> 0:18:29.800
<v Speaker 1>I was five eleven. Now it's seventy two on five

0:18:29.880 --> 0:18:33.520
<v Speaker 1>nine and a half, okay, And I did not grow

0:18:34.119 --> 0:18:37.040
<v Speaker 1>one quarter of an inch from twelve. So I was

0:18:37.080 --> 0:18:40.400
<v Speaker 1>a star basketball player at twelve, the player of the year.

0:18:41.440 --> 0:18:44.240
<v Speaker 1>Then something happened and everyone else grew two inches and

0:18:44.280 --> 0:18:48.760
<v Speaker 1>I didn't. I went from center to forward, to guard,

0:18:48.960 --> 0:18:53.040
<v Speaker 1>to the bench to the stands. Okay, let's talk about

0:18:53.080 --> 0:18:55.480
<v Speaker 1>other things you're doing at philanthropy. You've been very involved

0:18:55.560 --> 0:18:59.600
<v Speaker 1>in education. Why is education so important? When I was

0:18:59.720 --> 0:19:04.480
<v Speaker 1>in elementary skill in the fifties, only of jobs required

0:19:04.560 --> 0:19:09.560
<v Speaker 1>a skill. Today, whether it's a skill or a semi skill,

0:19:10.240 --> 0:19:15.280
<v Speaker 1>eight jobs require some skill, some knowledge. And I think

0:19:15.920 --> 0:19:19.240
<v Speaker 1>when we studied education in the nineteen seventies, what we

0:19:19.359 --> 0:19:24.280
<v Speaker 1>discovered was the United States was the most educated country

0:19:24.280 --> 0:19:27.440
<v Speaker 1>in the world, and so other countries have now caught

0:19:27.480 --> 0:19:31.280
<v Speaker 1>the United States and passed. And so yes we are

0:19:31.320 --> 0:19:34.120
<v Speaker 1>the leader and higher it and as you know as

0:19:34.160 --> 0:19:37.840
<v Speaker 1>the former head of trustee of so many of them today,

0:19:38.240 --> 0:19:41.239
<v Speaker 1>but we are strained in many ways in education. So

0:19:41.320 --> 0:19:46.320
<v Speaker 1>our whole emphasis in our foundation was education, and that's

0:19:46.359 --> 0:19:48.879
<v Speaker 1>why it was launched. And it was really the education.

0:19:49.040 --> 0:19:53.160
<v Speaker 1>I got that we didn't focus on the schools and

0:19:53.280 --> 0:19:57.080
<v Speaker 1>for our employees as much as we should have. You

0:19:57.160 --> 0:19:59.840
<v Speaker 1>look back on your remarkable career, any regrets in your

0:20:00.040 --> 0:20:03.080
<v Speaker 1>nancial career. Sure, there's a few people I wish I

0:20:03.080 --> 0:20:07.000
<v Speaker 1>would have never met Okay, or a few phone calls

0:20:07.040 --> 0:20:10.159
<v Speaker 1>I wish I would have never returned. And but I

0:20:10.480 --> 0:20:17.520
<v Speaker 1>think also I regret that the American public didn't understand

0:20:18.920 --> 0:20:23.600
<v Speaker 1>almost every person is high yield junk. You know, when

0:20:23.640 --> 0:20:28.560
<v Speaker 1>things started coming from Japan in the sixties and seventies,

0:20:28.600 --> 0:20:32.280
<v Speaker 1>everyone said they were junk. It's junk, And then all

0:20:32.280 --> 0:20:35.240
<v Speaker 1>of a sudden we felt by the eighties the quality

0:20:35.320 --> 0:20:39.080
<v Speaker 1>of their products and cars was better. Everything coming on

0:20:39.200 --> 0:20:43.760
<v Speaker 1>to China was junk. The American public didn't understand they

0:20:43.760 --> 0:20:49.440
<v Speaker 1>were talking about themselves. Sixty million jobs being created by

0:20:49.920 --> 0:20:52.919
<v Speaker 1>non investment grade companies in the latter third of the

0:20:52.960 --> 0:20:57.680
<v Speaker 1>twentieth century minus jobs being created by investment grade companies.

0:20:58.280 --> 0:21:03.359
<v Speaker 1>And I think going forward, you know, I'm going to

0:21:03.440 --> 0:21:06.800
<v Speaker 1>devote a large percentage of my time here to the

0:21:06.840 --> 0:21:09.959
<v Speaker 1>American what I call the living the American dream. Now

0:21:09.960 --> 0:21:12.439
<v Speaker 1>you're creating a center for the American dream. So why

0:21:12.440 --> 0:21:14.679
<v Speaker 1>don't we conclude with what do you think the American

0:21:14.760 --> 0:21:18.400
<v Speaker 1>dream is all about? I think the American dream, which

0:21:18.440 --> 0:21:22.720
<v Speaker 1>is so unique, is a chance to succeed based on

0:21:22.800 --> 0:21:27.280
<v Speaker 1>your ability. You're going to work hard, your knowledge, your insight,

0:21:28.000 --> 0:21:31.800
<v Speaker 1>which is one of the most valuable qualities. Now, I

0:21:31.840 --> 0:21:35.320
<v Speaker 1>can't tell you how depressed I am when I see

0:21:35.359 --> 0:21:39.480
<v Speaker 1>that of Americans under thirty. I think they're going to

0:21:39.560 --> 0:21:42.880
<v Speaker 1>have a better life than their parents. A long time

0:21:42.920 --> 0:21:47.080
<v Speaker 1>ago it was of Americans. So why do they feel that? Why? Why?

0:21:47.080 --> 0:21:52.320
<v Speaker 1>Why do fifty of Americans under thirty think socialism might

0:21:52.320 --> 0:21:54.679
<v Speaker 1>be better? In the free enterprise system, you can see

0:21:54.720 --> 0:22:00.240
<v Speaker 1>socialism and venezuela playing out, and so something is miss seen.

0:22:00.840 --> 0:22:03.840
<v Speaker 1>And I think, as I've been focused on it one

0:22:03.920 --> 0:22:08.240
<v Speaker 1>it's hope. What I see is a large percentage of

0:22:08.280 --> 0:22:13.520
<v Speaker 1>Americans don't see that hope. They have their student loans

0:22:13.560 --> 0:22:16.800
<v Speaker 1>that are burdens for their entire life. Even if you

0:22:16.840 --> 0:22:19.239
<v Speaker 1>go bankrupt, you can't get real your student loans. We

0:22:19.680 --> 0:22:22.480
<v Speaker 1>have to eliminate student loans. We have to find another

0:22:22.520 --> 0:22:27.360
<v Speaker 1>way to finance college. Two. Someone try to take their

0:22:27.400 --> 0:22:30.200
<v Speaker 1>parents home in two thousand eight or nine or ten,

0:22:30.359 --> 0:22:33.920
<v Speaker 1>or they lost their homes, so their interaction with our

0:22:33.960 --> 0:22:38.280
<v Speaker 1>financial system, they haven't really seen the benefits of it.

0:22:38.600 --> 0:22:42.280
<v Speaker 1>We need to make sure that the financial system is

0:22:42.320 --> 0:22:46.280
<v Speaker 1>working for them. It needs to and it should, and

0:22:46.359 --> 0:22:50.159
<v Speaker 1>it starts with education, and starts with health, and it

0:22:50.240 --> 0:22:54.359
<v Speaker 1>starts with access to capital. So for me, I'm going

0:22:54.400 --> 0:22:57.080
<v Speaker 1>back to where I was fifty years ago. Thank you

0:22:57.160 --> 0:22:59.360
<v Speaker 1>very much for doing that, and thank you for your

0:22:59.359 --> 0:23:02.360
<v Speaker 1>time today and very remarkable career. Thank you, Muchell, thank

0:23:02.400 --> 0:23:06.680
<v Speaker 1>you David, Thanks, thank you, thank you must I, thank

0:23:08.440 --> 0:23:08.480
<v Speaker 1>h