WEBVTT - Morgan Stanley Chief US Equity Strategist Mike Wilson Talks Bessent Nomination

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Stocks higher as the post election rally picks up steam

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<v Speaker 2>investors welcoming President elect Donald Trump's treasury pick Scote Besson.

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<v Speaker 2>Mike Wilson of Morgan Stanley went in on the equity outlook,

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<v Speaker 2>writing with heart landing risks reduced this fall, the FED

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<v Speaker 2>cutting interest rates, business cycle indicators showing science of life

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<v Speaker 2>and the potential for an animal spirits rebound post the election.

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<v Speaker 2>The path of earnings growth should be upward as we

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<v Speaker 2>head through twenty twenty five. Mike joins us now for more.

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<v Speaker 2>Mikeel morning, Good Morning's good to see how unusually wide

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<v Speaker 2>are the range of outcomes for twenty twenty five for

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<v Speaker 2>you in the team, Well.

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<v Speaker 3>It's about the same as it was in the mid year.

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<v Speaker 4>I mean we moved to this sort of view because

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<v Speaker 4>the outcomes of the you know, the election, the economic outcome,

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<v Speaker 4>rates policy, ETCA is also wider. So you know, we

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<v Speaker 4>have to take that into an account and we did

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<v Speaker 4>a pretty good job I would say this year of

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<v Speaker 4>moving that around, meaning as the economic outlook changed through

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<v Speaker 4>the summer into the fall. I mean that's really the

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<v Speaker 4>game now is just trying to get ahead of these

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<v Speaker 4>sort of it's because it's going to remain uncertain. You

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<v Speaker 4>all were just discussing the new cabinet positions. Yeah, I

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<v Speaker 4>mean they don't even know yet. I mean they're going

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<v Speaker 4>to try to figure this out. That's the challenge. And

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<v Speaker 4>I think the markets are going to as usual trade that.

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<v Speaker 3>So we're we're trying to do that as well for clients.

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<v Speaker 2>So you'll message the client's gone into twenty five being nimble.

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<v Speaker 2>You've got some sect depicts in there. The other way

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<v Speaker 2>you like is financials, the underway the sector you don't

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<v Speaker 2>like the consumer, both staples and discretionary. Can we start

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<v Speaker 2>with the consumer? What's not to like?

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<v Speaker 4>Yeah, well, I mean it's been week. I mean the

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<v Speaker 4>consumer has been softer. And this fits into our sort

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<v Speaker 4>of you know, our call we've had for a while,

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<v Speaker 4>which is that the government has just sort of crowded

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<v Speaker 4>out a lot of the economy, right, I mean, the

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<v Speaker 4>low end, mid end consumer, low end mid.

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<v Speaker 3>End businesses quite frankly.

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<v Speaker 4>So that's something we are now thinking about, right, this changeover,

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<v Speaker 4>I mean, this is this is why Trump won, This

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<v Speaker 4>is why the Republicans won. They want change, Consumers want change.

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<v Speaker 4>So let's see if they can execute. But that's something

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<v Speaker 4>that we're we have a short leash on now. On

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<v Speaker 4>the consumer side, i'd say we're looking to maybe upgrade

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<v Speaker 4>certain consumer stacks if they can pull off some of

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<v Speaker 4>these policy challenges that they're going to try to navigate.

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<v Speaker 4>And look, I think on the financials, that's we've been

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<v Speaker 4>overweight financials. It's been a terrific group and the question

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<v Speaker 4>there is and was how much further can it go?

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<v Speaker 4>But look, once again, policy deregulation, you know, Basil three

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<v Speaker 4>coming off.

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<v Speaker 3>I mean, these things are all positive drivers that should.

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<v Speaker 4>Continue to help that sector at least on a relative basis.

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<v Speaker 2>Policy challenges and changes for the consumer, what changes would

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<v Speaker 2>you need to see? Well, well, grade a bigger cohort

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<v Speaker 2>of those names.

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<v Speaker 4>I think that once again it's this crowding out things.

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<v Speaker 4>So this is this is a big picture of you.

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<v Speaker 4>But if they can shrink the government, and by the way,

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<v Speaker 4>it's gonna take years, so this is not going to

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<v Speaker 4>happen in six months, and that's why we were not

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<v Speaker 4>upgrading consumers yet. But if you're able to shrink the

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<v Speaker 4>size of the government, kind of get them off the

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<v Speaker 4>back of small businesses to some degree you can't this

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<v Speaker 4>animal spirit thing is real. And then of course if

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<v Speaker 4>you can get you know, balance sort of you know,

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<v Speaker 4>the rate situation under control, where term premium is you know,

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<v Speaker 4>balanced with with the budget. You know, that's those are

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<v Speaker 4>the kinds of things that can actually spur consumer spending,

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<v Speaker 4>consumer confidence, which has really been in the doldrums.

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<v Speaker 3>How much is it? Also tax policy?

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<v Speaker 1>Essentially, if people pay fewer taxes, they can go out

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<v Speaker 1>and spend more on.

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<v Speaker 3>Gucci or anything else.

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<v Speaker 4>I mean, I mean, quite frankly, the consumer has been

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<v Speaker 4>having a hard time spending money on food, you know.

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<v Speaker 3>So let's start with that.

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<v Speaker 4>Let's start with just getting inflation sort of under control,

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<v Speaker 4>you know, getting people's confidence about the economy going forward

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<v Speaker 4>and willingness to sort of look forward and spend on things,

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<v Speaker 4>invest in things. I think one of the biggest areas

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<v Speaker 4>that is really undperformed is consumer durables because rates are

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<v Speaker 4>still too high.

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<v Speaker 3>The level of rates are still too high.

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<v Speaker 4>Now, I don't think we're going to be able to

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<v Speaker 4>see rates come down any faster because of this administration,

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<v Speaker 4>but over time.

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<v Speaker 3>That's I think that's the key.

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<v Speaker 4>If we can get rates down to a plausible level,

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<v Speaker 4>rate of wages increase to offset the inflation that's already

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<v Speaker 4>in the economy, the consumer will fare better.

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<v Speaker 1>There are a lot of other questions like tariffs and

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<v Speaker 1>how that could potentially affect some of these companies, But

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<v Speaker 1>there's a broader point here, which is that specific sectors

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<v Speaker 1>are going to respond very differently to policy changes going

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<v Speaker 1>forward and don't necessarily have the same kind of macroeconomic

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<v Speaker 1>overlay that they've had in recent years. And I wonder

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<v Speaker 1>how much you're sort of seeing that play out to

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<v Speaker 1>healthcare in particular, because it's been one outlier over the

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<v Speaker 1>past two weeks, You've seen it go down some six

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<v Speaker 1>percent because of the overhaul that clearly is lining up

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<v Speaker 1>with some of the picks for cms and hhs. Do

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<v Speaker 1>you lean into that or do you see these opportunities.

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<v Speaker 4>Well, there's both. I mean, there's going to be risk

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<v Speaker 4>here too. I mean, by the way, once again, the

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<v Speaker 4>markets are very smart about this. They've punished big food

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<v Speaker 4>companies because of perhaps Bobby Kennedy's appointment.

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<v Speaker 3>Same thing for pharmaceuticals. So the bad news is.

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<v Speaker 4>Sort of already getting priced in that regard, but the

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<v Speaker 4>positive story in healthcare quite frankly, it's just an efficiency story.

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<v Speaker 4>It's no different than the government. This is going to

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<v Speaker 4>take years. If we can make the deployment of health care,

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<v Speaker 4>the delivery of healthcare more efficient, that's going to create

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<v Speaker 4>great opportunity for certain types of businesses. But this is

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<v Speaker 4>to come right. This is this is why we need

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<v Speaker 4>to be nimble and think about, Okay, we're going to

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<v Speaker 4>it's not all going to happen at once. So there's

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<v Speaker 4>going to be moments of fear, doubt and uncertainty, and

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<v Speaker 4>that's going to create the opportunity.

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<v Speaker 3>We think through twenty twenty five.

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<v Speaker 5>You keep coming back to efficiency. Do you think Elon

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<v Speaker 5>Musk and the vake Ramaswami could dogify the economy.

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<v Speaker 4>I think they're there's a good chance that we can

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<v Speaker 4>not necessarily cut all the spending they're talking about, but

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<v Speaker 4>if we can just freeze spending. Remember the key here

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<v Speaker 4>is fiscal sustainability, which is just let's grow the government

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<v Speaker 4>slower than that we're growing nominal GDP if you can

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<v Speaker 4>get into that position. So Scott Besson has said, you

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<v Speaker 4>know this part of his plan, let's just get the

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<v Speaker 4>fiscal diffensit done to three percent.

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<v Speaker 3>We're not talking about going to zero.

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<v Speaker 4>But if we can just get the three percent, that's

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<v Speaker 4>in a much more sustainable place, which is one of

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<v Speaker 4>the reasons why I think that the bomb market is reacting,

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<v Speaker 4>at least initially somewhat positively to this. One of the

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<v Speaker 4>key negatives or risks that we see in the short

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<v Speaker 4>term had been term premium.

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<v Speaker 3>If term premium contained to widen.

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<v Speaker 4>Out, that's a real risk for multiple So I'm encouraged

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<v Speaker 4>by the reaction initially, but I'm also not confident to

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<v Speaker 4>say that this is going to be Oh, it's a

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<v Speaker 4>straight path from here to there.

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<v Speaker 5>What do you think the north star is with all

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<v Speaker 5>is said and done of this administration, Because you have

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<v Speaker 5>things like tax cuts, but things like as well as

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<v Speaker 5>tariffs which in a blanket response many economists say could

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<v Speaker 5>be inflationary, but they ran on getting inflation down. Is

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<v Speaker 5>that the number one key thing that Trump wants to

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<v Speaker 5>make sure inflation comes down for Americans to afford groceries.

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<v Speaker 4>Well, I think that because mandate was prices are too high.

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<v Speaker 4>That's They're probably three main issues. Prices are too high,

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<v Speaker 4>unacceptable immigration, We've got to fix that. And then this

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<v Speaker 4>idea of these never ending wars and like spending money

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<v Speaker 4>over like unnecessarily and many Americans' eyes, So he's.

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<v Speaker 3>Going to take try and take all three of those.

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<v Speaker 4>It's a kind of an America First policy with the

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<v Speaker 4>sort of added twist that we're also going to try

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<v Speaker 4>and redistribute the income in a way that's more like

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<v Speaker 4>you taxing people and then distributing it that way is inefficient.

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<v Speaker 4>If you can somehow reduce taxes and get the income

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<v Speaker 4>redistributed at the wage level, that's really really good. I

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<v Speaker 4>think that would be the goal. Once again, all comes

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<v Speaker 4>down to execution.

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<v Speaker 1>When you say nimble and being nimble as an investor,

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<v Speaker 1>are you saying trade frequently? Is this going to be

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<v Speaker 1>the most active trading year that you can imagine for

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<v Speaker 1>the team in twenty twenty five.

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<v Speaker 4>Yeah, I think that's a really good way to put it.

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<v Speaker 4>I would say we've been more active in that regard

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<v Speaker 4>trading the underlying as opposed to focusing so much on

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<v Speaker 4>the index. We are probably we're going to be offering

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<v Speaker 4>more trades for clients. And when I say trade is

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<v Speaker 4>not day trade, it's three to six months, you know,

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<v Speaker 4>rotating around the portfolio in a way that there's actually

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<v Speaker 4>you can do that in size. We're not going to say, hey,

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<v Speaker 4>you know, do these things that larger clients can't do.

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<v Speaker 4>But three to six month trades is a lot faster

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<v Speaker 4>than sort of a twelve month view.

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<v Speaker 1>Do you see the breakdown of correlations that have traditionally

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<v Speaker 1>held true, whether it's with yields and the effect on

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<v Speaker 1>stocks and some of the macro economic overlays. Are they

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<v Speaker 1>going to become less relevant as there are these sort

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<v Speaker 1>of rotating trades three to six months that kind of

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<v Speaker 1>go through sectors and specific names.

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<v Speaker 3>No, I think they.

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<v Speaker 4>Become more important. I think the macro will always play

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<v Speaker 4>a role.

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<v Speaker 3>I do hope.

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<v Speaker 4>And expect perhaps next year that we can see more

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<v Speaker 4>micro opportunity.

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<v Speaker 3>And what I mean by that is that.

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<v Speaker 4>Because of the economy and the setup that policy that

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<v Speaker 4>we've had. By the way, this is not just the

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<v Speaker 4>last four years. This is the last twenty years. This

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<v Speaker 4>crowding out right, it's the big get bigger that have

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<v Speaker 4>and have not the k economy.

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<v Speaker 3>They're sort of familiar with.

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<v Speaker 4>That to me is going to be the key. Can

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<v Speaker 4>we move from sort of a very narrow participation in

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<v Speaker 4>the economy both from a consumer and corporate standpoint is

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<v Speaker 4>something that's broader. If that happens, that's going to create

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<v Speaker 4>more micro opportunity. But it doesn't mean you can ignore

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<v Speaker 4>interest rates other policy changes because that's what's going to

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<v Speaker 4>affect the micro opportunity.

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<v Speaker 2>Why does that leave to MAC seven some of these

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<v Speaker 2>dominant companies.

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<v Speaker 4>I mean, I think you're already seeing it. It's like

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<v Speaker 4>there's going to be more winners going. It's gonna be

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<v Speaker 4>separations of winners and losers there too. One thing we

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<v Speaker 4>know about, you know, cycles over time, is that the winner,

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<v Speaker 4>the big winners of the last ten or twenty years,

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<v Speaker 4>are not the big winners of the next ten or

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<v Speaker 4>twenty years. And so we've talked about this a lot,

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<v Speaker 4>we've written.

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<v Speaker 3>About it like AI.

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<v Speaker 4>To me, the big exciting part of AI is not

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<v Speaker 4>the guys who are building AI today and the picks

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<v Speaker 4>and shovels who have already won. It's the application layer

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<v Speaker 4>who's going to who's going to develop and deliver the

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<v Speaker 4>solutions that take advantage of this new compute platform to

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<v Speaker 4>deliver the efficiency for corporate America for consumers, much like

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<v Speaker 4>email did or web browsers or software as a service.

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<v Speaker 4>I mean, you think about the big winners of the Internet.

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<v Speaker 4>It wasn't the carriers who spend all this money and

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<v Speaker 4>put it in the ground. It was the companies that

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<v Speaker 4>built the application layers to build better mouse traps.

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<v Speaker 3>Going forward.

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<v Speaker 2>You rite about some of this earlier this year. You

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<v Speaker 2>said the folks at the moment of the equity market

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<v Speaker 2>was on the AI enablers, which was the chips companies,

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<v Speaker 2>the videos of this world. Where are we in that process?

0:09:13.080 --> 0:09:14.440
<v Speaker 2>Are we moving away from that yet?

0:09:14.640 --> 0:09:16.240
<v Speaker 4>Well, we're still in it. I mean there's still companies

0:09:16.240 --> 0:09:18.959
<v Speaker 4>that are still benefiting. But that's all very narrow too.

0:09:19.000 --> 0:09:21.720
<v Speaker 4>By the way, there aren't that many beneficiaries of the spin,

0:09:21.800 --> 0:09:23.960
<v Speaker 4>which has been unusual. It's very different than the nineties

0:09:24.000 --> 0:09:26.960
<v Speaker 4>we had hundreds of beneficiaries. So I think we're still

0:09:26.960 --> 0:09:29.040
<v Speaker 4>in that phase, and we're going to transition to now

0:09:29.400 --> 0:09:31.760
<v Speaker 4>the adopter phase, like who can actually use this stuff,

0:09:31.800 --> 0:09:34.720
<v Speaker 4>which so far is only the hyperscalers the route. Once again,

0:09:34.800 --> 0:09:37.559
<v Speaker 4>the really exciting part is is the ones who can

0:09:37.640 --> 0:09:41.200
<v Speaker 4>actually take this platform, build applications and then deliver it

0:09:41.240 --> 0:09:42.600
<v Speaker 4>to dummies like me.

0:09:43.040 --> 0:09:44.280
<v Speaker 3>And make me more productive.

0:09:44.360 --> 0:09:46.720
<v Speaker 4>Right, just the average person to say, I don't need

0:09:46.800 --> 0:09:49.280
<v Speaker 4>to be a technologist, but I understand how this application

0:09:49.320 --> 0:09:50.839
<v Speaker 4>works and how it can make me more efficient and

0:09:50.920 --> 0:09:53.040
<v Speaker 4>doing my job, which is you know, looking at stocks,

0:09:53.040 --> 0:09:55.640
<v Speaker 4>you know, these mass wants of data in a way

0:09:55.679 --> 0:09:57.640
<v Speaker 4>that I can actually understand and deliver that to clients.

0:09:57.640 --> 0:09:59.320
<v Speaker 2>We've known each other a while. I have to say,

0:09:59.400 --> 0:10:01.400
<v Speaker 2>you sound pretty excited about next year in a way

0:10:01.440 --> 0:10:02.960
<v Speaker 2>that I've not heard you for a long time.

0:10:03.080 --> 0:10:05.000
<v Speaker 4>Yeah, I mean we're now always you know, one way,

0:10:05.080 --> 0:10:07.760
<v Speaker 4>So I would say we're we've been excited about this

0:10:07.840 --> 0:10:10.880
<v Speaker 4>for six months and it's just now we can kind

0:10:10.880 --> 0:10:13.760
<v Speaker 4>of see it in a way where where we can see.

0:10:13.559 --> 0:10:15.360
<v Speaker 3>A broadening out. We see it in the numbers.

0:10:15.640 --> 0:10:17.199
<v Speaker 4>We've been waiting for this, So in the last two

0:10:17.280 --> 0:10:19.400
<v Speaker 4>quarters we've actually seen a broadening out of the earning

0:10:19.440 --> 0:10:22.679
<v Speaker 4>story for the first time, even before the election outcome. Okay,

0:10:22.720 --> 0:10:25.520
<v Speaker 4>so this is this is a two step process. It's

0:10:25.520 --> 0:10:28.840
<v Speaker 4>going to be you know, noisy stocks are expensive. Okay,

0:10:28.880 --> 0:10:30.439
<v Speaker 4>that's you know, that's something we have to understand. The

0:10:30.480 --> 0:10:32.880
<v Speaker 4>markets are ahead of this already. Let's not think that

0:10:32.920 --> 0:10:35.360
<v Speaker 4>we're discovering the light bulb here. Okay, the markets have

0:10:35.400 --> 0:10:38.160
<v Speaker 4>already done this. So but yes, I think there's a

0:10:38.280 --> 0:10:42.240
<v Speaker 4>wider path now, A wider set of opportunities, which to

0:10:42.280 --> 0:10:43.080
<v Speaker 4>me is more exciting.

0:10:43.240 --> 0:10:44.760
<v Speaker 2>You spent a lot of time speaking to clients over

0:10:44.800 --> 0:10:46.319
<v Speaker 2>the last few months, I'm sure about the outlook for

0:10:46.360 --> 0:10:49.360
<v Speaker 2>twenty twenty five. What are the most skeptical about. What's

0:10:49.400 --> 0:10:50.640
<v Speaker 2>the biggest pushback you get?

0:10:50.920 --> 0:10:53.840
<v Speaker 4>Well, evaluation has been I've been skeptical in that quite frankly.

0:10:53.880 --> 0:10:56.160
<v Speaker 4>So it's still people are uncomfortable with the evaluation in

0:10:56.200 --> 0:10:58.720
<v Speaker 4>the equity markets. But then when you think about, well, okay,

0:10:58.720 --> 0:11:00.800
<v Speaker 4>well what else is there out there, and then you

0:11:00.840 --> 0:11:03.199
<v Speaker 4>look at the US versus other markets too, So that's

0:11:03.200 --> 0:11:05.760
<v Speaker 4>probably the biggest one. The second one is just it

0:11:05.840 --> 0:11:12.520
<v Speaker 4>still feels unstable, you know, I mean, like geopolitics, the political.

0:11:12.160 --> 0:11:14.720
<v Speaker 3>You know, angst in this country is like that resolved.

0:11:14.760 --> 0:11:18.840
<v Speaker 4>I mean, there's still this very bifurcated political environment. People's

0:11:18.880 --> 0:11:21.480
<v Speaker 4>economic situations are very bifurcated.

0:11:21.520 --> 0:11:22.920
<v Speaker 3>That makes people uncomfortable.

0:11:23.400 --> 0:11:25.880
<v Speaker 4>So I think that's the part that people just it's

0:11:25.960 --> 0:11:28.480
<v Speaker 4>hard to get uber bullish when you have all these

0:11:28.520 --> 0:11:30.439
<v Speaker 4>things that are are kind of holding in your sense.

0:11:30.480 --> 0:11:32.280
<v Speaker 2>There's some clients and of course you're not going to

0:11:32.360 --> 0:11:34.559
<v Speaker 2>name many, but you sense the summer finding it difficult

0:11:34.600 --> 0:11:37.960
<v Speaker 2>to divorce their political bias away from their economic views.

0:11:38.000 --> 0:11:40.160
<v Speaker 2>Have they learned the lesson of twenty sixteen seventeen?

0:11:40.559 --> 0:11:44.480
<v Speaker 4>I mean, most clients are more objective. Investment clients are

0:11:44.480 --> 0:11:46.400
<v Speaker 4>more objective with that because they have to be right,

0:11:46.440 --> 0:11:49.120
<v Speaker 4>because there's this thing called this, you know, the price

0:11:49.640 --> 0:11:53.320
<v Speaker 4>that makes them be objective about the outcome. That doesn't

0:11:53.360 --> 0:11:55.200
<v Speaker 4>mean they don't hold by personal biases.

0:11:55.240 --> 0:11:56.600
<v Speaker 3>We all do. That's natural.

0:11:57.360 --> 0:11:59.600
<v Speaker 4>I do think twenty sixteen maybe change that a bit,

0:12:00.360 --> 0:12:05.080
<v Speaker 4>but we're all forced to perform, and whether it's a

0:12:05.080 --> 0:12:08.160
<v Speaker 4>political bias or it's a style bias, you have to

0:12:08.280 --> 0:12:09.880
<v Speaker 4>navigate that and be flexible.

0:12:10.000 --> 0:12:12.080
<v Speaker 2>Just to put a bow on this conversation, the essence

0:12:12.120 --> 0:12:14.520
<v Speaker 2>of this conversation when you talked about the administration was

0:12:14.559 --> 0:12:17.160
<v Speaker 2>the real potential for real change. When I asked you

0:12:17.200 --> 0:12:19.560
<v Speaker 2>about whether some of these kinds are skeptical about twenty

0:12:19.600 --> 0:12:22.840
<v Speaker 2>twenty five. Are they skeptical about anything in the administration's agenda?

0:12:22.880 --> 0:12:24.839
<v Speaker 2>Do you think maybe they should be paying more attention to.

0:12:25.280 --> 0:12:26.640
<v Speaker 3>Well, we've wrote about this this weekend.

0:12:26.679 --> 0:12:29.080
<v Speaker 4>I mean there's a tremendous ment skepticism on whether they

0:12:29.080 --> 0:12:31.640
<v Speaker 4>can actually streamline the government because it's just I mean,

0:12:31.640 --> 0:12:32.600
<v Speaker 4>people have tried this before.

0:12:32.720 --> 0:12:33.439
<v Speaker 3>This is not like a.

0:12:33.400 --> 0:12:36.760
<v Speaker 4>New idea, right, so it's difficult. I mean, and we

0:12:36.760 --> 0:12:38.760
<v Speaker 4>all know about these roadblocks that are kind of built

0:12:38.800 --> 0:12:41.120
<v Speaker 4>into the system that you know, the appropriation is the

0:12:41.160 --> 0:12:42.160
<v Speaker 4>way you get the money.

0:12:42.200 --> 0:12:42.880
<v Speaker 3>They have to be spent.

0:12:42.960 --> 0:12:45.800
<v Speaker 4>You know, the civil liberties laws, which are good laws

0:12:45.840 --> 0:12:47.720
<v Speaker 4>to protect people's rights on jobs.

0:12:47.720 --> 0:12:49.240
<v Speaker 3>But it's just it's almost like.

0:12:49.360 --> 0:12:52.480
<v Speaker 4>You're fighting against this giant blob, and people are very

0:12:52.480 --> 0:12:55.680
<v Speaker 4>skeptical that you could beat the blob. And I think

0:12:55.720 --> 0:12:57.280
<v Speaker 4>that's an area where we need to be a little

0:12:57.320 --> 0:12:59.280
<v Speaker 4>bit more open mind. I'm more up prominded about that

0:12:59.360 --> 0:13:01.280
<v Speaker 4>because this is what the American people want. When I

0:13:01.320 --> 0:13:03.520
<v Speaker 4>want when I forget about talking to investment clients, when

0:13:03.559 --> 0:13:06.440
<v Speaker 4>I talk to people on the ground, people look at

0:13:06.440 --> 0:13:08.560
<v Speaker 4>the government and they say, hey, government does a lot

0:13:08.559 --> 0:13:10.960
<v Speaker 4>of great things for me, okay, but I have to

0:13:10.960 --> 0:13:12.600
<v Speaker 4>worry about my job all the time. I have to

0:13:13.000 --> 0:13:14.760
<v Speaker 4>operate in a different world. Why should they be operating

0:13:14.760 --> 0:13:17.120
<v Speaker 4>in a different environment. And I just think there's opportunity

0:13:17.120 --> 0:13:20.840
<v Speaker 4>and this is also potentially liberating for people in the government.

0:13:21.080 --> 0:13:23.720
<v Speaker 4>There are really good employees in the government, Okay, they

0:13:23.720 --> 0:13:25.560
<v Speaker 4>just play for a bad team. You know, it's like,

0:13:25.720 --> 0:13:27.839
<v Speaker 4>let's take a good player and a bad team and

0:13:27.920 --> 0:13:29.959
<v Speaker 4>let's putting them on on a better team and then

0:13:30.240 --> 0:13:32.080
<v Speaker 4>probably get more productivity out of that person.

0:13:32.120 --> 0:13:35.000
<v Speaker 3>I think that's exciting. It's a lot of risk.

0:13:35.360 --> 0:13:38.080
<v Speaker 4>Okay, it's going to be a really messy road yep,

0:13:38.120 --> 0:13:39.240
<v Speaker 4>but that that to me is

0:13:39.280 --> 0:13:41.360
<v Speaker 2>Interesting looking forward to confident with you, it's good to

0:13:41.400 --> 0:13:43.319
<v Speaker 2>say my worst in there of Morgan Stanley on The

0:13:43.360 --> 0:13:43.680
<v Speaker 2>Lasist