1 00:00:00,160 --> 00:00:03,360 Speaker 1: This is Bloomberg Wall Street Week. What's the state of 2 00:00:03,400 --> 00:00:06,360 Speaker 1: corporate governance? The deficit is a real issue to use. 3 00:00:06,400 --> 00:00:09,920 Speaker 1: Economy continues to send mixed signals, the financial stories that 4 00:00:10,039 --> 00:00:13,560 Speaker 1: keep our world fed, action to con concerns over dollar liquidity, 5 00:00:13,640 --> 00:00:16,599 Speaker 1: and encouraging China data. The five hundred wealthiest people in 6 00:00:16,640 --> 00:00:19,560 Speaker 1: the world. Through the eyes of the most influential voices 7 00:00:19,880 --> 00:00:22,880 Speaker 1: Larry Summers, the former Treasury Secretary, star Ward CEO, Kevin 8 00:00:22,960 --> 00:00:26,640 Speaker 1: Johnson sec Chairman J Clayton. Bloomberg wool Street Week with 9 00:00:26,760 --> 00:00:30,720 Speaker 1: David Weston from Bloomberg Radio. Up, Up and away. Whether 10 00:00:30,800 --> 00:00:34,000 Speaker 1: it's stocks or high yield bonds or bitcoin, investors are 11 00:00:34,040 --> 00:00:37,680 Speaker 1: having a tough time finding assets they don't want to buy. 12 00:00:37,800 --> 00:00:41,120 Speaker 1: This is Bloomberg Wall Street Week. I'm David Weston. Equity 13 00:00:41,159 --> 00:00:44,200 Speaker 1: markets continue to move higher this week for the most part, 14 00:00:44,520 --> 00:00:47,720 Speaker 1: pushing up against records, blowing hot and cold on the 15 00:00:47,760 --> 00:00:51,760 Speaker 1: reflation trade, and leaving bond yields to stay range bound 16 00:00:52,080 --> 00:00:56,200 Speaker 1: even as high yield spreads set new record lows. But 17 00:00:56,400 --> 00:00:59,920 Speaker 1: are we moving too far and too fast? Some warn 18 00:01:00,000 --> 00:01:02,720 Speaker 1: about the risk of inflation, but FED chair J. Pale 19 00:01:02,960 --> 00:01:06,520 Speaker 1: downplays that possibility. There could be some upward pressure on 20 00:01:06,640 --> 00:01:11,240 Speaker 1: prices there again, though uh I, my expectation would be 21 00:01:11,400 --> 00:01:14,720 Speaker 1: that that that will be neither large nor sustained. You know, 22 00:01:14,800 --> 00:01:17,160 Speaker 1: in major part we are looking at actual inflation. We 23 00:01:17,160 --> 00:01:19,600 Speaker 1: want to see actual inflation and to take us through 24 00:01:19,680 --> 00:01:21,480 Speaker 1: a week when the markets just seemed to go up 25 00:01:21,520 --> 00:01:24,640 Speaker 1: and up. We welcome now a roundtable of Honni Bechelust. 26 00:01:24,840 --> 00:01:27,560 Speaker 1: She is the CEO of Rock Creek and Steve Rattner. 27 00:01:27,680 --> 00:01:30,120 Speaker 1: He is the chairman of Will and Advisors. They invest 28 00:01:30,240 --> 00:01:33,440 Speaker 1: the personal and philanthropic assets of Michael or Bloomberg. He 29 00:01:33,560 --> 00:01:37,000 Speaker 1: of course is the founder and principal shareholder of Bloomberg LP. 30 00:01:37,440 --> 00:01:39,520 Speaker 1: So welcome to both of you. Sonny, let me start 31 00:01:39,520 --> 00:01:41,320 Speaker 1: with you, as I said, it looks like right now 32 00:01:41,360 --> 00:01:43,959 Speaker 1: that the equity markets by and large just go up. 33 00:01:44,160 --> 00:01:46,840 Speaker 1: How do you invest into that market as a practical matter, 34 00:01:47,000 --> 00:01:50,080 Speaker 1: because it looks like we're investing almost in the government 35 00:01:50,160 --> 00:01:53,200 Speaker 1: in fiscal and monetary policy and some vaccine, not in 36 00:01:53,240 --> 00:01:56,960 Speaker 1: the companies themselves. You're absolutely right, David, it has been 37 00:01:57,240 --> 00:02:00,080 Speaker 1: seeming like that, But there are many new players in 38 00:02:00,120 --> 00:02:03,680 Speaker 1: the equity markets, as we've seen also in the last two, 39 00:02:04,320 --> 00:02:07,440 Speaker 1: uh several months, several in the last year as the 40 00:02:07,480 --> 00:02:10,960 Speaker 1: power of the retail investor has become also very different. 41 00:02:11,840 --> 00:02:15,800 Speaker 1: The interesting thing that is going on with the institutions though, 42 00:02:16,040 --> 00:02:18,919 Speaker 1: is that as they saw last year, some of them 43 00:02:18,919 --> 00:02:21,440 Speaker 1: were sitting a little bit on the side of the market, 44 00:02:22,040 --> 00:02:25,600 Speaker 1: and they're seeing that momentum is very important, and that's 45 00:02:25,600 --> 00:02:28,720 Speaker 1: why you're seeing not just the retail but big institutions 46 00:02:28,840 --> 00:02:33,600 Speaker 1: also keeping uh additions to their equities. The only thing 47 00:02:33,639 --> 00:02:36,880 Speaker 1: I would say, David is I think actually stock picking 48 00:02:37,320 --> 00:02:39,800 Speaker 1: is coming back, and it's not just going to be 49 00:02:39,880 --> 00:02:42,440 Speaker 1: the index funds that will matter. In fact, if anything, 50 00:02:42,919 --> 00:02:46,560 Speaker 1: it will be much more important to choose stocks even 51 00:02:46,600 --> 00:02:48,800 Speaker 1: though you have this kind of momentum, So if you 52 00:02:48,800 --> 00:02:50,160 Speaker 1: have a lot of money then you have to put 53 00:02:50,200 --> 00:02:52,440 Speaker 1: to work. Do you agree with that or is Warren 54 00:02:52,480 --> 00:02:54,760 Speaker 1: Buffett right that basically for most investors you should just 55 00:02:54,800 --> 00:02:57,120 Speaker 1: be betting the market. I actually probably agree a little 56 00:02:57,120 --> 00:02:59,640 Speaker 1: bit more with Warren Buffett as far as individual investors 57 00:02:59,720 --> 00:03:02,040 Speaker 1: can learned. But let me just go back and agree 58 00:03:02,040 --> 00:03:04,360 Speaker 1: with what Asani just said. It add a little bit 59 00:03:04,360 --> 00:03:07,720 Speaker 1: of how we think about it. First, I think I 60 00:03:07,760 --> 00:03:10,040 Speaker 1: think when you talk about the backs, what the government's 61 00:03:10,080 --> 00:03:11,880 Speaker 1: doing and the stimulus and all that. I think, what's 62 00:03:11,880 --> 00:03:15,280 Speaker 1: really put a floor under this market our interest rates. 63 00:03:15,360 --> 00:03:18,840 Speaker 1: And as when the SMP dividend yield is higher than 64 00:03:18,880 --> 00:03:21,440 Speaker 1: the interest rate on the tenure, it's easy for people 65 00:03:21,480 --> 00:03:23,280 Speaker 1: to say, well, why wouldn't I just take the SMP 66 00:03:23,360 --> 00:03:26,680 Speaker 1: dividend plus hopefully some appreciation and so forth. And so 67 00:03:27,080 --> 00:03:28,760 Speaker 1: when we think about the market, one of the things 68 00:03:28,760 --> 00:03:30,880 Speaker 1: we keep an eye on is whether interest rates are 69 00:03:30,880 --> 00:03:33,600 Speaker 1: going to start to rise. High interest rates are the enemy, 70 00:03:33,880 --> 00:03:36,360 Speaker 1: are the enemy of the market um in terms of 71 00:03:36,400 --> 00:03:40,560 Speaker 1: the evaluations and going up and up. Uh. Interestingly, corporate 72 00:03:40,560 --> 00:03:43,240 Speaker 1: profits have held up surprisingly well during this period, and 73 00:03:43,280 --> 00:03:45,360 Speaker 1: in fact, in this current earning seasons that were right 74 00:03:45,360 --> 00:03:47,920 Speaker 1: in the middle of now, something like seventy or even 75 00:03:47,960 --> 00:03:51,640 Speaker 1: seventy five percent of companies are beating expectations. And so 76 00:03:51,720 --> 00:03:54,720 Speaker 1: there are real earnings coming through for many for many 77 00:03:54,720 --> 00:03:57,200 Speaker 1: of these companies. And the third thing I'd say is 78 00:03:57,240 --> 00:03:59,400 Speaker 1: that as we talk to our managers, and most of 79 00:03:59,400 --> 00:04:02,840 Speaker 1: our money, as you know, is managed by specific fund 80 00:04:02,880 --> 00:04:07,360 Speaker 1: specialized funds that have a specific area of of interest. UM, 81 00:04:07,440 --> 00:04:11,480 Speaker 1: we have not we have rarely seen so much enthusiasm, bullishness, 82 00:04:11,560 --> 00:04:13,320 Speaker 1: if you want to call it that about the market. 83 00:04:13,600 --> 00:04:15,920 Speaker 1: In addition to what I said about interest rates and 84 00:04:15,920 --> 00:04:19,880 Speaker 1: so forth and earnings coming through. What our managers are 85 00:04:19,920 --> 00:04:23,800 Speaker 1: seeing is this one point six trillion dollars of pent 86 00:04:23,920 --> 00:04:26,839 Speaker 1: up demand, of excess savings, of dry powder or whatever 87 00:04:26,839 --> 00:04:29,280 Speaker 1: you want to call it. That Jason Furmant and Larry 88 00:04:29,320 --> 00:04:31,240 Speaker 1: Sumrs has talked about this in a bit as well, 89 00:04:31,600 --> 00:04:34,880 Speaker 1: that many of us expect to become unleashed as the 90 00:04:34,960 --> 00:04:38,120 Speaker 1: virus becomes less of a fact, people get vaccinated and 91 00:04:38,160 --> 00:04:41,280 Speaker 1: start to clout and have all the things to do 92 00:04:41,320 --> 00:04:43,039 Speaker 1: that they didn't get to do and now want to do, 93 00:04:43,120 --> 00:04:45,680 Speaker 1: and the cash to do it. I pushed together two 94 00:04:45,680 --> 00:04:48,359 Speaker 1: things that ste've just talked about. One is Larry Summers 95 00:04:48,480 --> 00:04:51,920 Speaker 1: and Jason Furman. Also, I'll add Olivia von Chard weren't 96 00:04:51,920 --> 00:04:54,680 Speaker 1: warning actually about the possibility of inflation coming back as 97 00:04:54,720 --> 00:04:57,480 Speaker 1: we keep pumping money to economy and the interest rates 98 00:04:57,520 --> 00:04:59,520 Speaker 1: being the enemy of the market. Is there a risk 99 00:04:59,600 --> 00:05:01,520 Speaker 1: as an vester, do you need to take into account 100 00:05:01,640 --> 00:05:04,200 Speaker 1: a risk that inflation may drive up interest rates and 101 00:05:04,279 --> 00:05:07,359 Speaker 1: change the complexion of the market. Absolutely, that that is 102 00:05:07,400 --> 00:05:10,720 Speaker 1: something that we watch very That's something we watch very 103 00:05:10,800 --> 00:05:15,080 Speaker 1: very closely. As you know, actual reported inflation at the 104 00:05:15,120 --> 00:05:17,479 Speaker 1: moment is incredibly subdued. There was just a number of 105 00:05:17,480 --> 00:05:20,719 Speaker 1: the other day UH, and there's really no sign of anything. 106 00:05:20,760 --> 00:05:22,920 Speaker 1: But but that's not surprising. We're still in this kind 107 00:05:22,920 --> 00:05:25,880 Speaker 1: of partial lockdown. But when you look ahead and inflationary 108 00:05:25,880 --> 00:05:29,479 Speaker 1: expectations using treasuries and tips and all the calculations you 109 00:05:29,520 --> 00:05:32,920 Speaker 1: can do, inflationary expectations have moved up a bit there 110 00:05:32,960 --> 00:05:35,280 Speaker 1: now in the two percent range when you go out 111 00:05:35,320 --> 00:05:38,159 Speaker 1: one year. And that's fine because that's the target, but 112 00:05:38,240 --> 00:05:40,760 Speaker 1: it is something we absolutely keep a close eye on. Tony. 113 00:05:40,839 --> 00:05:43,760 Speaker 1: What about Rock Creek UM. It's really interesting because both 114 00:05:44,080 --> 00:05:48,000 Speaker 1: FED German and UH and the European Central Bank are 115 00:05:48,120 --> 00:05:50,680 Speaker 1: basically saying they don't I don't say they don't care 116 00:05:50,720 --> 00:05:54,039 Speaker 1: about inflation rates, but they're not concerned. They're not going 117 00:05:54,080 --> 00:05:57,000 Speaker 1: to be moving to do anything different than what they've 118 00:05:57,040 --> 00:06:00,320 Speaker 1: been doing. So that I think is very indicate about 119 00:06:00,320 --> 00:06:03,560 Speaker 1: what's going on in terms of UM. We also look 120 00:06:03,600 --> 00:06:07,480 Speaker 1: at Japan as a really important UM sort of historical 121 00:06:07,560 --> 00:06:11,080 Speaker 1: fact how hard it has been to push up inflation. Obviously, 122 00:06:11,160 --> 00:06:13,480 Speaker 1: the kind of numbers in terms of our stimulus plan 123 00:06:14,000 --> 00:06:16,880 Speaker 1: that are we're talking about right now, plus what we 124 00:06:16,920 --> 00:06:19,640 Speaker 1: will be talking about very soon hopefully, which is on 125 00:06:19,760 --> 00:06:23,640 Speaker 1: the infrastructure fund up front, will be very important. But 126 00:06:24,000 --> 00:06:28,320 Speaker 1: let's not forget it's also the fact that inflation itself, 127 00:06:28,360 --> 00:06:32,440 Speaker 1: the way we measure it, everyone knows, is problematic. Thank 128 00:06:32,480 --> 00:06:35,080 Speaker 1: you so much to our round table of Steve Ratner, 129 00:06:35,120 --> 00:06:38,840 Speaker 1: Will Advisors, and a Sunday Bachelists up Rock Creek. Coming up, 130 00:06:38,920 --> 00:06:42,040 Speaker 1: What the pandemic has meant for the least fortunate among 131 00:06:42,160 --> 00:06:44,840 Speaker 1: us and why taking care of them isn't just right, 132 00:06:45,360 --> 00:06:49,599 Speaker 1: it's a good investment from Robin Hood Foundation CEO Westmore. 133 00:06:50,160 --> 00:06:58,599 Speaker 1: That's next on Wall Street Week on Bloomberg. This is 134 00:06:58,640 --> 00:07:03,000 Speaker 1: Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 135 00:07:03,240 --> 00:07:06,839 Speaker 1: The pandemic has hit the most vulnerable among us the hardest, 136 00:07:07,120 --> 00:07:10,080 Speaker 1: and that's particularly true of people of color and even 137 00:07:10,120 --> 00:07:14,200 Speaker 1: more so children of color. Westmore has spent his career 138 00:07:14,240 --> 00:07:17,360 Speaker 1: addressing the needs of those who needed the most. Under 139 00:07:17,440 --> 00:07:20,120 Speaker 1: his leadership, the Robin Hood Foundation has become one of 140 00:07:20,160 --> 00:07:24,600 Speaker 1: the leading organizations in the country fighting poverty because it's right, 141 00:07:25,080 --> 00:07:28,480 Speaker 1: but also because it's good for our economy. He's been 142 00:07:28,480 --> 00:07:31,760 Speaker 1: on the front lines of fighting the effects of COVID nineteen. 143 00:07:32,240 --> 00:07:35,440 Speaker 1: The pandemic has been absolutely devastating. Uh. You know, the 144 00:07:35,480 --> 00:07:37,600 Speaker 1: reality is if you just take a look in New York, 145 00:07:38,160 --> 00:07:41,520 Speaker 1: if you had breakfast with your family today, you're better 146 00:07:41,560 --> 00:07:45,360 Speaker 1: off than two million of your neighbors literally right now 147 00:07:45,440 --> 00:07:48,080 Speaker 1: in New York City. At the height of the pandemic. UH. 148 00:07:48,160 --> 00:07:50,640 Speaker 1: In New York City alone, one in three parents of 149 00:07:50,680 --> 00:07:54,920 Speaker 1: small children were skipping meals or reducing meals in order 150 00:07:54,960 --> 00:07:59,200 Speaker 1: to feed their children. The pandemic has had absolutely devastating 151 00:07:59,320 --> 00:08:01,840 Speaker 1: impacts on communities. And really where you see it is 152 00:08:01,880 --> 00:08:04,040 Speaker 1: it's on the communities where it was the most predictable 153 00:08:04,280 --> 00:08:06,800 Speaker 1: that I was going to have a devastating impact. It 154 00:08:06,960 --> 00:08:10,560 Speaker 1: was the low income communities where there's concentrated poverty. It 155 00:08:10,680 --> 00:08:13,560 Speaker 1: was on communities of color. Also because when you consider 156 00:08:13,640 --> 00:08:16,120 Speaker 1: the fact that how many jobs were lost, many of 157 00:08:16,160 --> 00:08:18,240 Speaker 1: those jobs that were lost, and particularly the ones that 158 00:08:18,280 --> 00:08:22,000 Speaker 1: have not managed to come back, these were oftentimes the 159 00:08:22,080 --> 00:08:25,240 Speaker 1: jobs in hospitality. There were the restaurant workers, they were 160 00:08:25,280 --> 00:08:29,640 Speaker 1: the hot the hotel workers, uh, the ones who were 161 00:08:29,720 --> 00:08:33,200 Speaker 1: oftentimes the low wage, entry level jobs. But they were 162 00:08:33,240 --> 00:08:37,000 Speaker 1: also the jobs that were keeping families overflowed. And so 163 00:08:37,120 --> 00:08:40,200 Speaker 1: this has been a really complicated time for families in 164 00:08:40,280 --> 00:08:43,160 Speaker 1: New York and also around the country. So so taking 165 00:08:43,240 --> 00:08:46,160 Speaker 1: that need did you know so well? And I've identified 166 00:08:46,480 --> 00:08:48,720 Speaker 1: put it against what we're now talking about, this one 167 00:08:48,720 --> 00:08:50,600 Speaker 1: point nine trillion dollar package, because there's a lot of 168 00:08:50,600 --> 00:08:53,800 Speaker 1: talk about whether it's targeted or not. Is it targeted? 169 00:08:53,960 --> 00:08:55,960 Speaker 1: Is the money if it was adopted tomorrow, would it 170 00:08:55,960 --> 00:08:59,040 Speaker 1: get to the people who needed the most? It's it's uh, 171 00:08:59,040 --> 00:09:03,600 Speaker 1: it is targeted, yet not enough. Uh? And and really 172 00:09:03,640 --> 00:09:05,360 Speaker 1: what I mean by that as well, is there are 173 00:09:05,400 --> 00:09:08,920 Speaker 1: still nuances to the policies that are going to have 174 00:09:09,120 --> 00:09:12,199 Speaker 1: a much bigger and much larger impact if we can 175 00:09:12,240 --> 00:09:14,920 Speaker 1: actually focus on helping those who are the most vulnerable. 176 00:09:15,200 --> 00:09:17,360 Speaker 1: One perfect example is I think about the child tax 177 00:09:17,360 --> 00:09:20,760 Speaker 1: credit where you know, in in in two thousand and eighteen, 178 00:09:20,840 --> 00:09:24,560 Speaker 1: and this was before COVID nineteen, about twelve million American 179 00:09:24,640 --> 00:09:28,120 Speaker 1: children lived in poverty, right, uh. And the and child 180 00:09:28,120 --> 00:09:33,319 Speaker 1: poverty nation. Why the costs are between eight hundred billion 181 00:09:33,440 --> 00:09:35,920 Speaker 1: and one point one trillion dollars. Again, we can't pretend 182 00:09:35,960 --> 00:09:38,240 Speaker 1: that there is no cost to child poverty. The cost 183 00:09:38,280 --> 00:09:41,040 Speaker 1: every year for child poverty is between eight eight hundred 184 00:09:41,080 --> 00:09:44,120 Speaker 1: billion and one point one trillion. What we're looking right 185 00:09:44,120 --> 00:09:46,200 Speaker 1: now with the with the with adjustments of the child 186 00:09:46,200 --> 00:09:47,920 Speaker 1: tax credit is that if you look at the two 187 00:09:47,960 --> 00:09:51,760 Speaker 1: thousand seventeen UH Tax Cuts and Jobs Act, it had 188 00:09:51,800 --> 00:09:54,559 Speaker 1: a child tax credit provision, but it included an income 189 00:09:54,600 --> 00:09:58,120 Speaker 1: phasing that really prevented over fifty percent of black and 190 00:09:58,200 --> 00:10:01,800 Speaker 1: Latino Latino children from receiving the full benefit. So there 191 00:10:01,840 --> 00:10:05,280 Speaker 1: are currently twenty four million children in this country right 192 00:10:05,320 --> 00:10:09,000 Speaker 1: now who are too deep into poverty to be able 193 00:10:09,040 --> 00:10:11,920 Speaker 1: to receive the credit because of this income phase in. 194 00:10:12,320 --> 00:10:14,400 Speaker 1: And so when we're talking about the bill that's being 195 00:10:14,400 --> 00:10:16,720 Speaker 1: proposed right now, the thing that can have the greatest 196 00:10:16,760 --> 00:10:20,360 Speaker 1: impact on our population, the greatest impact on child poverty 197 00:10:20,400 --> 00:10:22,520 Speaker 1: is if you can actually make the child poverty tax 198 00:10:22,559 --> 00:10:25,160 Speaker 1: credit fully refundable and also in addition to make it 199 00:10:25,200 --> 00:10:29,160 Speaker 1: fully refundable, you then make it permit. By doing those 200 00:10:29,200 --> 00:10:32,880 Speaker 1: two pieces to this bill, you would cut child poverty 201 00:10:33,320 --> 00:10:38,160 Speaker 1: in half overnight, literally moving four and a half million 202 00:10:38,240 --> 00:10:42,679 Speaker 1: children out of poverty overnight. And so we're hoping that 203 00:10:42,720 --> 00:10:46,480 Speaker 1: as they're we're having conversations about reconciliation about the real 204 00:10:46,559 --> 00:10:49,840 Speaker 1: drill down of these type of policies that we understand 205 00:10:49,880 --> 00:10:52,040 Speaker 1: the role that those policies are gonna be gonna be 206 00:10:52,080 --> 00:10:54,679 Speaker 1: able to make, and the adjustments on those type of 207 00:10:54,720 --> 00:10:57,200 Speaker 1: credits are going to have a market impact in our community. 208 00:10:57,360 --> 00:11:00,120 Speaker 1: And obviously there's a moral dimension to this is we 209 00:11:00,160 --> 00:11:02,760 Speaker 1: think about how many children in this very wealthy country 210 00:11:02,800 --> 00:11:05,280 Speaker 1: are poor, live below the popular land. There's also, as 211 00:11:05,280 --> 00:11:07,480 Speaker 1: you suggest, an economic aspect. I mean, if you really 212 00:11:07,480 --> 00:11:10,719 Speaker 1: could cut childhood poverty in half, what would it mean 213 00:11:10,760 --> 00:11:14,199 Speaker 1: for GDP for example? I mean, you're you're literally talking 214 00:11:14,200 --> 00:11:19,480 Speaker 1: about adding adding trillions every single year, onto, onto, onto, 215 00:11:19,480 --> 00:11:21,760 Speaker 1: onto our GDP, and the and the ability for us 216 00:11:21,800 --> 00:11:25,600 Speaker 1: also to be able to unearth the massive amounts of 217 00:11:25,679 --> 00:11:30,560 Speaker 1: intellectual capacity and intellectual talent that we are just completely squandering. 218 00:11:31,040 --> 00:11:33,600 Speaker 1: You know, we think about, for example, what's happening, you know, 219 00:11:33,679 --> 00:11:36,720 Speaker 1: within within education right now. You know when when when 220 00:11:36,800 --> 00:11:39,680 Speaker 1: schools closed and in New York City alone, you know, 221 00:11:39,720 --> 00:11:43,319 Speaker 1: three hundred thousand school children lacked access to devices. Three 222 00:11:43,400 --> 00:11:46,240 Speaker 1: hundred thousand children lacked access to school devices to be 223 00:11:46,280 --> 00:11:48,640 Speaker 1: able to do their work. In Baltimore City where I 224 00:11:48,679 --> 00:11:52,360 Speaker 1: live right now, sixty one percent of ninth graders are 225 00:11:52,440 --> 00:11:57,280 Speaker 1: chronically absent. Sixty ninth graders are missing more than thirty 226 00:11:57,360 --> 00:11:59,720 Speaker 1: percent of the school year, and so when we think 227 00:11:59,760 --> 00:12:01,840 Speaker 1: about what that means, not just in terms of what 228 00:12:01,880 --> 00:12:04,480 Speaker 1: it means for right now, but what does it mean 229 00:12:04,520 --> 00:12:08,480 Speaker 1: for the future when six of your ninth graders are 230 00:12:08,520 --> 00:12:11,840 Speaker 1: now unaccounted for. So we have to really be very 231 00:12:11,920 --> 00:12:14,880 Speaker 1: serious about being able to put the resources in place 232 00:12:15,000 --> 00:12:17,800 Speaker 1: right now to be able to protect for our tomorrow 233 00:12:17,960 --> 00:12:20,160 Speaker 1: and to be able to protect for our day after. 234 00:12:20,240 --> 00:12:24,160 Speaker 1: There are economic implications, societal implications on us getting this 235 00:12:24,320 --> 00:12:26,520 Speaker 1: right right now. So so as we have to spend 236 00:12:26,520 --> 00:12:29,199 Speaker 1: a minute two on you, because you just recently announced 237 00:12:29,200 --> 00:12:31,920 Speaker 1: you'd be stepping down uh in may, I believe for 238 00:12:32,080 --> 00:12:34,440 Speaker 1: a CEO of Robin Hood Foundation, give us a sense 239 00:12:34,440 --> 00:12:36,520 Speaker 1: of what you feel you've accomplished there and what has 240 00:12:36,600 --> 00:12:40,000 Speaker 1: yet to be done. Well, I I am so incredibly 241 00:12:40,040 --> 00:12:42,760 Speaker 1: proud of the work we've been able to get done 242 00:12:42,920 --> 00:12:44,800 Speaker 1: as as a as a team and as a community 243 00:12:45,160 --> 00:12:47,680 Speaker 1: really for the past four years. In the past four 244 00:12:47,720 --> 00:12:51,880 Speaker 1: years alone, we've raised six hundred and fifty five million 245 00:12:51,920 --> 00:12:55,440 Speaker 1: dollars as an organization towards the poverty by including two 246 00:12:55,520 --> 00:12:59,480 Speaker 1: hundred and thirty million dollars last year alone, amid the pandemic, 247 00:12:59,520 --> 00:13:02,440 Speaker 1: which is one of highest fundraising totals in the organization's history. 248 00:13:02,720 --> 00:13:04,720 Speaker 1: You know, we have we have focused and rooted our 249 00:13:04,760 --> 00:13:08,640 Speaker 1: work in communities and really created not just initiatives that are, 250 00:13:08,840 --> 00:13:11,839 Speaker 1: for example, some of the first nationwide initiatives that we've 251 00:13:11,880 --> 00:13:14,200 Speaker 1: ever created in the history of our organizations, investing in 252 00:13:14,520 --> 00:13:18,600 Speaker 1: areas in Maryland and Pennsylvania and Illinois, but then also 253 00:13:18,640 --> 00:13:21,760 Speaker 1: even having a community lens and a community vote for 254 00:13:21,840 --> 00:13:24,640 Speaker 1: the first time in terms of where our capital gets 255 00:13:24,760 --> 00:13:30,040 Speaker 1: distributed and who which organizations received the received the revenue. 256 00:13:30,600 --> 00:13:33,079 Speaker 1: We've advocated for policy for the first time and built 257 00:13:33,080 --> 00:13:35,559 Speaker 1: a policy wing, uh, first time in the history of 258 00:13:35,600 --> 00:13:39,520 Speaker 1: the organization where we're fighting for pay for nonprofits we are. 259 00:13:39,760 --> 00:13:42,840 Speaker 1: We fought for a moratorium on evictions and utility shut offs, 260 00:13:43,080 --> 00:13:46,079 Speaker 1: activated a relief fund amid the pandemic, and distributed over 261 00:13:46,080 --> 00:13:49,960 Speaker 1: sixty five million dollars mainly in emergency food and emergency 262 00:13:49,960 --> 00:13:53,480 Speaker 1: cash assistance. So I'm incredibly proud of what we've been 263 00:13:53,520 --> 00:13:55,679 Speaker 1: able to get done. UH. And it's the right time 264 00:13:55,720 --> 00:13:58,480 Speaker 1: for the organization to be able to have you know, 265 00:13:58,600 --> 00:14:00,720 Speaker 1: have our new leader who is going to be able 266 00:14:00,720 --> 00:14:03,360 Speaker 1: to build on that strength and foundation to be able 267 00:14:03,400 --> 00:14:06,120 Speaker 1: to move us forward. And most importantly, it's just the 268 00:14:06,200 --> 00:14:08,560 Speaker 1: right time for me and my family. Uh. You know 269 00:14:08,600 --> 00:14:11,880 Speaker 1: I I was actually you know I, even though Robins 270 00:14:11,920 --> 00:14:15,240 Speaker 1: offices are in New York, I never left Baltimore. Uh, 271 00:14:15,240 --> 00:14:18,520 Speaker 1: And I've been commuting back and forth, and I stopped 272 00:14:18,559 --> 00:14:22,440 Speaker 1: keeping count of how many bedtimes I was missing. And 273 00:14:22,920 --> 00:14:26,040 Speaker 1: this moment, this time really helped me to take a 274 00:14:26,080 --> 00:14:29,480 Speaker 1: step back and think to myself, Uh, there were too 275 00:14:29,480 --> 00:14:32,320 Speaker 1: many moments, too many moments that I'll never get back 276 00:14:32,920 --> 00:14:35,880 Speaker 1: that I wasn't a part of that. Was Westmore, CEO 277 00:14:36,160 --> 00:14:39,000 Speaker 1: of the Robin Hood Foundation, coming up. The move from 278 00:14:39,040 --> 00:14:43,240 Speaker 1: combustion engines to electric vehicles. It's coming faster than we think, 279 00:14:43,720 --> 00:14:47,440 Speaker 1: and GM CEO Mary Barra is investing twenty seven billion 280 00:14:47,440 --> 00:14:50,320 Speaker 1: dollars to get us there. That's next on Wall Street 281 00:14:50,320 --> 00:14:59,280 Speaker 1: Week on Bloomberg. This is Bloomberg Wall Street Week with 282 00:14:59,400 --> 00:15:02,920 Speaker 1: David west It from Bloomberg Radio. The pressure is on 283 00:15:03,040 --> 00:15:06,960 Speaker 1: for automakers to go green. Investors, consumers, and even the 284 00:15:07,000 --> 00:15:10,840 Speaker 1: new administration are pushing the electric car revolution forward, and 285 00:15:10,920 --> 00:15:14,040 Speaker 1: Detroit is taking the hint. Ford announced that it will 286 00:15:14,040 --> 00:15:18,040 Speaker 1: invest twenty two billion dollars in e VS through doubling 287 00:15:18,240 --> 00:15:22,760 Speaker 1: its previous spending commitment. Here's Mark Kaufman of Ford. You 288 00:15:22,800 --> 00:15:26,000 Speaker 1: know we're seeing in both Europe and China there there's 289 00:15:26,000 --> 00:15:28,720 Speaker 1: a clear race for leadership there in the e V space. 290 00:15:29,000 --> 00:15:32,080 Speaker 1: GM's plans to go electric are even more ambitious. The 291 00:15:32,160 --> 00:15:35,120 Speaker 1: one and twelve year old automaker plans to go all 292 00:15:35,160 --> 00:15:39,320 Speaker 1: electric by five and we'll spend twenty seven billion dollars 293 00:15:39,360 --> 00:15:43,800 Speaker 1: on electric and autonomous cars by General Motors is our 294 00:15:43,840 --> 00:15:46,320 Speaker 1: pick with eight dollar price started hundred twenty dollar bull case. 295 00:15:46,320 --> 00:15:48,600 Speaker 1: I think it's it's the one to own this year. 296 00:15:48,760 --> 00:15:52,840 Speaker 1: That was Morgan Stanley's Adam Jonas. Tesla has already overtaken 297 00:15:52,880 --> 00:15:56,560 Speaker 1: traditional automakers like GM and Ford with its seven hundred 298 00:15:56,560 --> 00:15:59,640 Speaker 1: seventy two billion dollar market gap, but not all e 299 00:15:59,760 --> 00:16:02,840 Speaker 1: V companies have the track record to support their recent surge. 300 00:16:03,200 --> 00:16:06,880 Speaker 1: Blink Charging, which owns and operates charging stations, is of 301 00:16:07,040 --> 00:16:12,080 Speaker 1: twenty two over the past year, making Tesla's four dock 302 00:16:12,200 --> 00:16:16,160 Speaker 1: rally look small. Blink has never posted an annual profit 303 00:16:16,240 --> 00:16:20,320 Speaker 1: and it's eleven year history. Here's Diamond CEO Ola Collineus. 304 00:16:20,680 --> 00:16:23,320 Speaker 1: The fact that the market seems to put such a 305 00:16:23,440 --> 00:16:27,920 Speaker 1: high evaluation on e V business. I I look upon 306 00:16:28,000 --> 00:16:31,480 Speaker 1: that as good news as an inspiration in our journey 307 00:16:31,680 --> 00:16:36,720 Speaker 1: over towards emission free mobility and becoming an EV company. Eventually, 308 00:16:37,000 --> 00:16:39,720 Speaker 1: evis still have a long way to go before they 309 00:16:39,760 --> 00:16:43,680 Speaker 1: replace gas powered cars. According to the International Energy Agency, 310 00:16:44,040 --> 00:16:48,240 Speaker 1: evs make up just three of total cars sold globally. 311 00:16:49,600 --> 00:16:52,760 Speaker 1: There two million cars in the United States and about 312 00:16:52,800 --> 00:16:55,320 Speaker 1: two hundred seven nine million running gasoline. And I don't 313 00:16:55,320 --> 00:16:57,520 Speaker 1: think people are going to throw away their cars, So 314 00:16:57,600 --> 00:17:00,280 Speaker 1: I think it's this is a longer evolution that Dan 315 00:17:00,360 --> 00:17:03,480 Speaker 1: Jurgen from i h S market. But g M CEO 316 00:17:03,680 --> 00:17:06,600 Speaker 1: Mary Barr is determined to bring the e V future 317 00:17:06,640 --> 00:17:09,320 Speaker 1: to us faster than we might think, and she thinks 318 00:17:09,400 --> 00:17:12,120 Speaker 1: it's not just good for the environment, it's also good 319 00:17:12,160 --> 00:17:14,800 Speaker 1: for her business. We're going to have a very positive 320 00:17:14,880 --> 00:17:19,520 Speaker 1: year in one, not only from a financial perspective, but 321 00:17:19,680 --> 00:17:23,720 Speaker 1: also the continued acceleration of our EV and our a 322 00:17:23,880 --> 00:17:27,280 Speaker 1: V business. We're really excited that very shortly we're going 323 00:17:27,359 --> 00:17:30,640 Speaker 1: to be launching the Chevrolet Bold EUV, and then you know, 324 00:17:31,000 --> 00:17:34,080 Speaker 1: later this year will be uh serving the market with 325 00:17:34,160 --> 00:17:37,560 Speaker 1: the GMC Hummer U e V, and then the catalec 326 00:17:37,680 --> 00:17:41,200 Speaker 1: Lyric comes shortly after that as well as tremendous progress 327 00:17:41,240 --> 00:17:44,880 Speaker 1: being made from an autonomous perspective as well. So we're 328 00:17:44,920 --> 00:17:47,520 Speaker 1: really excited about the year, the growth opportunities that we 329 00:17:47,560 --> 00:17:49,600 Speaker 1: have in front of us UH and so it's a 330 00:17:49,680 --> 00:17:52,920 Speaker 1: year of execution and you know the issues with chips, 331 00:17:52,960 --> 00:17:55,160 Speaker 1: this is a short term mission. Will work through it well. 332 00:17:55,240 --> 00:17:57,760 Speaker 1: Is general mode is basically the same boat as everyone else? 333 00:17:57,840 --> 00:17:59,440 Speaker 1: Or are there things that you can do to get 334 00:17:59,480 --> 00:18:02,119 Speaker 1: something that manage over other auto makers? I think in 335 00:18:02,160 --> 00:18:04,959 Speaker 1: general this is an industry issue. Of course, we're working 336 00:18:05,119 --> 00:18:07,720 Speaker 1: every single day with a cross functional team to look 337 00:18:07,720 --> 00:18:10,719 Speaker 1: for opportunities of how do we minimize the impact. So 338 00:18:10,800 --> 00:18:13,200 Speaker 1: we'll continue to do that. You know, we did provide 339 00:18:13,440 --> 00:18:17,280 Speaker 1: the guidance with a fairly wide range and we'll work 340 00:18:17,280 --> 00:18:19,359 Speaker 1: at every day and provide updates as we go forward. 341 00:18:19,680 --> 00:18:21,600 Speaker 1: As you said, you've got a lot of e V 342 00:18:21,920 --> 00:18:24,159 Speaker 1: models come out, including as you say, the Bold EUV 343 00:18:24,359 --> 00:18:27,520 Speaker 1: and the Bold EV new model coming out. You're investing 344 00:18:27,520 --> 00:18:29,680 Speaker 1: twenty seven billion dollars. This is part of a multi 345 00:18:29,760 --> 00:18:33,199 Speaker 1: year plan here As a practical matter, what are the 346 00:18:33,240 --> 00:18:35,640 Speaker 1: difficulties in that plan? And particularly want to talk about 347 00:18:35,640 --> 00:18:39,719 Speaker 1: supply chains things like battery cells some of the lithium issues. 348 00:18:39,960 --> 00:18:43,040 Speaker 1: Do you anticipate possible problems with supply chains into your 349 00:18:43,040 --> 00:18:46,080 Speaker 1: battery operation? Well, I think you know. We're one of 350 00:18:46,200 --> 00:18:52,240 Speaker 1: only two automakers that are doing cell manufacturer in this country. 351 00:18:52,320 --> 00:18:55,040 Speaker 1: We also are doing a tremendous amount of development on 352 00:18:55,080 --> 00:18:56,879 Speaker 1: our own and our own g M, R and D, 353 00:18:57,119 --> 00:19:00,640 Speaker 1: as well as partnering with startups and our of course 354 00:19:00,680 --> 00:19:03,640 Speaker 1: our joint venture with lg KEM that is development as 355 00:19:03,720 --> 00:19:07,000 Speaker 1: well as production. So you know, we're working hard to 356 00:19:07,040 --> 00:19:09,680 Speaker 1: make sure we have all the cells we need and 357 00:19:09,720 --> 00:19:12,680 Speaker 1: we've worked, you know, through the supply base to make 358 00:19:12,680 --> 00:19:16,320 Speaker 1: sure we do because we are as as we've talked about, 359 00:19:16,320 --> 00:19:21,600 Speaker 1: we're accelerating our v e vs with thirty and you know, 360 00:19:21,640 --> 00:19:24,440 Speaker 1: really covering the whole market. I did some rough math here. 361 00:19:24,440 --> 00:19:26,800 Speaker 1: It might be wrong, but basically, if you made all 362 00:19:26,800 --> 00:19:29,760 Speaker 1: of your vehicles as electric vehicles, you would actually be 363 00:19:29,880 --> 00:19:32,159 Speaker 1: using more than the total mono lithium produced in the 364 00:19:32,280 --> 00:19:34,840 Speaker 1: entire world by yourself. So does that mean we'll have 365 00:19:34,960 --> 00:19:37,479 Speaker 1: less lithium used or we're going to find new sources 366 00:19:37,480 --> 00:19:39,560 Speaker 1: of it? Well, I think you know we're working on 367 00:19:39,640 --> 00:19:42,320 Speaker 1: securing the supply that we need, but we're also working 368 00:19:42,480 --> 00:19:46,800 Speaker 1: on development that allows us to use less precious metals overall. 369 00:19:46,960 --> 00:19:50,560 Speaker 1: So it's kind of a yes, and both are things 370 00:19:50,560 --> 00:19:53,440 Speaker 1: that we're working on at the same time. And when 371 00:19:53,440 --> 00:19:56,280 Speaker 1: we talk about things like the bolt EV that's coming out, 372 00:19:56,640 --> 00:19:59,680 Speaker 1: questions come up with profitability. We had din Lawer competitor 373 00:19:59,680 --> 00:20:01,160 Speaker 1: come out in say, by the end of the decade, 374 00:20:01,359 --> 00:20:03,560 Speaker 1: they will be making as much or more out of 375 00:20:03,640 --> 00:20:06,080 Speaker 1: electric fields as they do off a combustion engines. What's 376 00:20:06,080 --> 00:20:10,040 Speaker 1: your profitability path for electric vehicles. Well, we have set 377 00:20:10,040 --> 00:20:13,000 Speaker 1: a goal for ourselves to have margins from our auto 378 00:20:13,040 --> 00:20:16,119 Speaker 1: business be at ten percent. That's not changing. Uh, we 379 00:20:16,160 --> 00:20:18,960 Speaker 1: don't talk about individual product line profitability, but I can 380 00:20:18,960 --> 00:20:21,040 Speaker 1: tell you with the progress that we're making because of 381 00:20:21,080 --> 00:20:25,000 Speaker 1: the work we do with battery development, from our our 382 00:20:25,040 --> 00:20:27,639 Speaker 1: first generation bol TV to when we get to ultim 383 00:20:27,720 --> 00:20:31,119 Speaker 1: we see about improvement and we're already working on the 384 00:20:31,119 --> 00:20:34,040 Speaker 1: next generation of our ultium technology that should take it 385 00:20:34,119 --> 00:20:38,040 Speaker 1: to accumulative sixty or more. So you know, I'm very 386 00:20:38,040 --> 00:20:41,159 Speaker 1: confident that as we move forward and continue to make advancements. 387 00:20:41,160 --> 00:20:44,840 Speaker 1: That was GM chairman and CEO very Bara coming up. 388 00:20:44,960 --> 00:20:48,960 Speaker 1: The pandemic reaches its one year anniversary, we review what 389 00:20:49,080 --> 00:20:51,720 Speaker 1: it's done to us and what long term effects it 390 00:20:51,760 --> 00:20:55,280 Speaker 1: will have with our special contributor Larry Summers of Harvard. 391 00:20:55,840 --> 00:21:03,159 Speaker 1: That's next on Wall Street Week on Bloomberg. This is 392 00:21:03,240 --> 00:21:07,600 Speaker 1: Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 393 00:21:08,080 --> 00:21:15,920 Speaker 1: Experience suggests that major pandemic events are events that take 394 00:21:15,960 --> 00:21:20,240 Speaker 1: place somewhere between half once every half century and once 395 00:21:20,280 --> 00:21:23,720 Speaker 1: every century. The fact that this one has gone so 396 00:21:23,840 --> 00:21:28,160 Speaker 1: far has to mean there's a substantial chance that it's 397 00:21:28,200 --> 00:21:32,400 Speaker 1: the one for this half century or this century. And 398 00:21:32,840 --> 00:21:36,679 Speaker 1: the events that take place that infrequently, the worst of 399 00:21:36,720 --> 00:21:41,000 Speaker 1: them kill a number of millions of people, and quite 400 00:21:41,040 --> 00:21:45,600 Speaker 1: possibly as many as ten million people. That was special 401 00:21:45,600 --> 00:21:48,120 Speaker 1: Wall Street. We contributed Larry Summers all the way back 402 00:21:48,160 --> 00:21:52,320 Speaker 1: February six, a year ago now, and this was before, 403 00:21:52,359 --> 00:21:54,920 Speaker 1: of course, there was a total shutdown in American economy 404 00:21:55,080 --> 00:21:58,119 Speaker 1: and it became rampant across the entire country. We welcome 405 00:21:58,160 --> 00:22:00,360 Speaker 1: now Larry Summers back, and Larry, I know you don't 406 00:22:00,400 --> 00:22:02,400 Speaker 1: want to take a victory lat This is not good news, 407 00:22:02,440 --> 00:22:04,920 Speaker 1: this is sad news. But you were right. You said 408 00:22:05,160 --> 00:22:07,960 Speaker 1: millions could die, millions have died, could be as many 409 00:22:08,000 --> 00:22:10,679 Speaker 1: as ten minute. We're a quarter of our way there globally. 410 00:22:10,800 --> 00:22:12,880 Speaker 1: Right now, give us a sense of what you think 411 00:22:12,880 --> 00:22:15,160 Speaker 1: COVID nineteen has done to this country into the world 412 00:22:15,240 --> 00:22:18,400 Speaker 1: so far. God, I wish I had been wrong. Uh. 413 00:22:19,160 --> 00:22:22,359 Speaker 1: I think it's so far probably the most significant event 414 00:22:23,200 --> 00:22:28,320 Speaker 1: of the twenty one century. I think we're getting towards 415 00:22:28,359 --> 00:22:32,439 Speaker 1: the end of it, for in its acute phase, at 416 00:22:32,520 --> 00:22:35,679 Speaker 1: least in the industrial world. But it's going to cast 417 00:22:35,760 --> 00:22:40,600 Speaker 1: a big shadow forward. And I think the ultimate historical 418 00:22:40,720 --> 00:22:46,040 Speaker 1: significance here is going to be that age to basically 419 00:22:46,119 --> 00:22:52,480 Speaker 1: manage this successfully and the West basically manage this unsuccessful, 420 00:22:53,160 --> 00:22:58,639 Speaker 1: and that is going to raise profound questions about the 421 00:22:58,760 --> 00:23:08,440 Speaker 1: democratic model, the functioning of democratic u polities, and so 422 00:23:08,720 --> 00:23:14,560 Speaker 1: I think the lessons we learned from this are going 423 00:23:14,680 --> 00:23:20,480 Speaker 1: to shape whether government by the people, government for the 424 00:23:20,680 --> 00:23:27,400 Speaker 1: people does or does not h perish from this earth. 425 00:23:28,040 --> 00:23:33,240 Speaker 1: One looks at the magnitude of the contrast in the 426 00:23:33,320 --> 00:23:37,960 Speaker 1: fraction of people who died in populations of the extent 427 00:23:38,080 --> 00:23:40,920 Speaker 1: to which kids were able to continue to go to school, 428 00:23:41,680 --> 00:23:45,160 Speaker 1: of the length of time for which life was profoundly 429 00:23:45,440 --> 00:23:49,720 Speaker 1: interrupted in a China, or in a Japan, or in 430 00:23:49,760 --> 00:23:55,000 Speaker 1: a Korea, or even in a Pakistan, and contrast that 431 00:23:55,240 --> 00:23:59,520 Speaker 1: with H what's happened in the United States or Spain, 432 00:24:00,200 --> 00:24:07,159 Speaker 1: were the United Kingdom. And it's UH deeply disturbing. And 433 00:24:07,320 --> 00:24:11,960 Speaker 1: I think that may be the longest u legacy of this. 434 00:24:12,960 --> 00:24:17,439 Speaker 1: Beyond that, David, I think it's accelerated the trends that 435 00:24:17,600 --> 00:24:23,720 Speaker 1: were either concerning us or exciting us before it happened. Um, 436 00:24:23,840 --> 00:24:26,560 Speaker 1: We're all going to be working with much more I 437 00:24:26,760 --> 00:24:32,359 Speaker 1: t H in our lives, much sooner than we envisioned. 438 00:24:33,119 --> 00:24:36,280 Speaker 1: Most of us thought of zoom as having to do 439 00:24:36,480 --> 00:24:39,800 Speaker 1: with how fast you were going UM a year and 440 00:24:39,800 --> 00:24:44,520 Speaker 1: a half ago. That's not the first association any of 441 00:24:44,600 --> 00:24:49,879 Speaker 1: us have with the word zoom. Today. It's going to 442 00:24:50,119 --> 00:24:57,800 Speaker 1: change how we work. It has been, like so many things, UM, 443 00:24:58,040 --> 00:25:05,600 Speaker 1: much more aimful uh for those with less education and 444 00:25:05,680 --> 00:25:09,119 Speaker 1: for those in the lower part of the income distribution 445 00:25:09,760 --> 00:25:14,480 Speaker 1: than for those who who are fortunate. I think it's 446 00:25:14,560 --> 00:25:21,720 Speaker 1: also going to change geography. UM. I was very worried 447 00:25:21,840 --> 00:25:24,760 Speaker 1: for a variety of reasons about the prospects for New 448 00:25:24,840 --> 00:25:30,720 Speaker 1: York City. I am much more concerned today after the 449 00:25:30,840 --> 00:25:39,320 Speaker 1: catalyst to exit that COVID UH represented co education, whether 450 00:25:39,359 --> 00:25:42,080 Speaker 1: it's higher education or grade school education has really been 451 00:25:42,160 --> 00:25:45,080 Speaker 1: hit hard by this pandemic. It has not recovered far 452 00:25:45,160 --> 00:25:48,320 Speaker 1: from it so far. How do you assess the loss 453 00:25:48,400 --> 00:25:52,000 Speaker 1: that we're taking right now in educating our young people? Look, 454 00:25:52,440 --> 00:25:56,240 Speaker 1: as best we can tell, when you lose a year 455 00:25:56,280 --> 00:26:00,639 Speaker 1: of education early in life, you get some of it back, 456 00:26:01,640 --> 00:26:05,600 Speaker 1: but you don't get all of it back. And so 457 00:26:06,280 --> 00:26:12,000 Speaker 1: the scar that is being placed on millions of children 458 00:26:12,000 --> 00:26:16,239 Speaker 1: who really didn't get much schooling UH this year is 459 00:26:16,280 --> 00:26:20,600 Speaker 1: not a scarf that's ever completely UH going to heal. 460 00:26:21,520 --> 00:26:25,840 Speaker 1: The President is absolutely right about the importance of getting 461 00:26:25,840 --> 00:26:30,600 Speaker 1: people back to school safely. That is about vaccinating, that 462 00:26:30,760 --> 00:26:37,439 Speaker 1: is about testing, That is about having appropriate infrastructures. And 463 00:26:38,000 --> 00:26:41,320 Speaker 1: I yield to no one in the importance I attached 464 00:26:41,359 --> 00:26:45,280 Speaker 1: to doing this safely. But I have to say that 465 00:26:46,720 --> 00:26:52,960 Speaker 1: entrenched UH and I'll say uh, teacher union interests that 466 00:26:53,040 --> 00:26:59,640 Speaker 1: have resisted going back to school have really been putting 467 00:26:59,680 --> 00:27:06,240 Speaker 1: their own material benefit I had of UH, the interests 468 00:27:06,280 --> 00:27:10,000 Speaker 1: of their kids, and that is not the best tradition 469 00:27:10,080 --> 00:27:14,320 Speaker 1: of the teaching profession. Some cases, they're absolutely right to 470 00:27:14,480 --> 00:27:20,520 Speaker 1: be focused on what's necessary before we move forward. But 471 00:27:20,960 --> 00:27:24,200 Speaker 1: I'd sure like to see a much more collaborative spirit 472 00:27:24,720 --> 00:27:28,880 Speaker 1: between teachers and school districts to get people back to school. 473 00:27:29,680 --> 00:27:34,280 Speaker 1: I did the success we've had in higher education, Uh, David, 474 00:27:34,920 --> 00:27:38,439 Speaker 1: In some ways, my class this year by zoom was 475 00:27:38,560 --> 00:27:43,240 Speaker 1: better than it had been with me in person, because Uh, 476 00:27:43,400 --> 00:27:46,560 Speaker 1: there was editing, there was the opportunity to bring in 477 00:27:46,640 --> 00:27:49,439 Speaker 1: people from all over the world, uh, to speak to 478 00:27:50,200 --> 00:27:55,320 Speaker 1: uh my class. I think America needs to launch a 479 00:27:55,480 --> 00:28:00,439 Speaker 1: major initiative to bring what's in our universities, which is 480 00:28:00,600 --> 00:28:04,560 Speaker 1: one of our great sources of national strength, to the 481 00:28:04,760 --> 00:28:08,240 Speaker 1: entire world, and I hope that will be a continuing 482 00:28:08,359 --> 00:28:12,280 Speaker 1: legacy for President Biden. So, Larry, let me wrap this 483 00:28:12,400 --> 00:28:15,080 Speaker 1: up by trying to find a happy note. When I 484 00:28:15,200 --> 00:28:17,399 Speaker 1: practiced law, we had this saying, when you're writing a 485 00:28:17,440 --> 00:28:20,720 Speaker 1: difficult brief, if you can't fix it, then feature it. 486 00:28:20,760 --> 00:28:23,000 Speaker 1: Is there a way to feature some of the difficulties 487 00:28:23,040 --> 00:28:25,000 Speaker 1: we've had, and that is to say, to recognize the 488 00:28:25,040 --> 00:28:27,320 Speaker 1: fact there has been a failure of competency, as you've 489 00:28:27,320 --> 00:28:30,240 Speaker 1: talked about repeatedly on the part of our government, failure 490 00:28:30,240 --> 00:28:32,440 Speaker 1: in various aspects, and to be something of a wake 491 00:28:32,520 --> 00:28:34,880 Speaker 1: up call, a clarion wake up call that actually could 492 00:28:34,880 --> 00:28:37,119 Speaker 1: help us turn around some things that, let's be honest, 493 00:28:37,320 --> 00:28:40,080 Speaker 1: needed to be turned around long before the pandemic. I 494 00:28:40,160 --> 00:28:43,240 Speaker 1: think we've got some examples. Look what we've done with 495 00:28:43,400 --> 00:28:49,360 Speaker 1: vaccines in terms of producing and developing developing this fast 496 00:28:50,240 --> 00:28:56,560 Speaker 1: is a miraculous tribute to the combination of science, intellectual leadership, 497 00:28:57,040 --> 00:29:01,680 Speaker 1: and powerful companies and mark its, and that gives us 498 00:29:01,720 --> 00:29:05,520 Speaker 1: something to build up. I think we've had a wake 499 00:29:05,640 --> 00:29:14,680 Speaker 1: up call that you need civil expert, serious thoughtful people 500 00:29:15,320 --> 00:29:19,680 Speaker 1: leading a society rather than what we had before. And 501 00:29:19,680 --> 00:29:23,960 Speaker 1: while I've got some disagreements on nuances of economic policy 502 00:29:24,560 --> 00:29:31,160 Speaker 1: with President Biden's UH team, isn't it remarkable that we're 503 00:29:31,760 --> 00:29:38,280 Speaker 1: talking about the optimal size of stimulus packages rather than 504 00:29:38,440 --> 00:29:44,840 Speaker 1: talking about possible impeachable offenses by the president? Isn't it 505 00:29:44,880 --> 00:29:49,320 Speaker 1: We're remarkable that we're worried about economic officials with the 506 00:29:49,400 --> 00:29:55,000 Speaker 1: wrong multiplier estimates rather than economic officials lying UH their 507 00:29:55,000 --> 00:30:04,520 Speaker 1: own pockets. Isn't it remarkable? Remarkable that we're talking about 508 00:30:04,560 --> 00:30:09,040 Speaker 1: and including every American in every group. But yeah, there 509 00:30:09,040 --> 00:30:11,800 Speaker 1: are arguments about ways in which we might be doing 510 00:30:11,800 --> 00:30:14,760 Speaker 1: it the right way or the wrong way. But isn't 511 00:30:14,760 --> 00:30:19,760 Speaker 1: that a sea change from pitting one American group against 512 00:30:20,920 --> 00:30:25,720 Speaker 1: another group. So I think that this has been a 513 00:30:25,960 --> 00:30:30,840 Speaker 1: kind of wake up call and it is starting to 514 00:30:31,040 --> 00:30:35,200 Speaker 1: reawaken the best impulses in Americans and therefore in America. 515 00:30:35,560 --> 00:30:37,400 Speaker 1: And there you have the positive note. Thank you so 516 00:30:37,520 --> 00:30:42,200 Speaker 1: much to special Wall Street Week contributor Larry Summers of Harvard. Finally, 517 00:30:42,640 --> 00:30:48,240 Speaker 1: one more thought, when does irrational exuberance become rational? Exuberance 518 00:30:48,440 --> 00:30:51,160 Speaker 1: was breaking out all over the markets this week? But 519 00:30:51,280 --> 00:30:54,320 Speaker 1: it's not always the fundamentals that are making money for people. 520 00:30:54,840 --> 00:30:58,240 Speaker 1: The game stop read it phenomenon moved on to cannabis 521 00:30:58,480 --> 00:31:01,680 Speaker 1: as Tilly was up two sent already in the month 522 00:31:01,680 --> 00:31:05,680 Speaker 1: of February with the Reddit wind at its back. And bitcoin, 523 00:31:05,800 --> 00:31:08,960 Speaker 1: don't get me even started a bitcoin. And if we're 524 00:31:08,960 --> 00:31:14,160 Speaker 1: talking fundamentals, what exactly our fundamentals for a made up cryptocurrency? 525 00:31:14,240 --> 00:31:16,719 Speaker 1: And then we come to Tom Brady and the Tampa 526 00:31:16,760 --> 00:31:20,000 Speaker 1: Bay Buccaneers. We started the week with the greatest of 527 00:31:20,000 --> 00:31:23,320 Speaker 1: all time, proving it by winning his seventh Super Bowl 528 00:31:23,560 --> 00:31:26,400 Speaker 1: and being named its Most Valuable Player for the fifth time. 529 00:31:26,880 --> 00:31:28,920 Speaker 1: When it comes to Brady, and the Buccaneers. You have 530 00:31:29,040 --> 00:31:32,760 Speaker 1: to say, the fundamentals are there an angel's quarterback whose 531 00:31:32,880 --> 00:31:35,640 Speaker 1: arms seems to be as strong as ever. So you 532 00:31:35,800 --> 00:31:39,160 Speaker 1: have to say that Tampa Bay exuberance was far from irrational. 533 00:31:39,760 --> 00:31:43,680 Speaker 1: But then by midweek even Brady seemed to get carried 534 00:31:43,720 --> 00:31:46,640 Speaker 1: away as he wrote his two million dollar yacht in 535 00:31:46,720 --> 00:31:52,040 Speaker 1: the celebratory parade and then gasp through the Vince Lombardi 536 00:31:52,080 --> 00:31:55,880 Speaker 1: Trophy from his boat over the water to his Bucks 537 00:31:55,880 --> 00:31:59,600 Speaker 1: tight end Cameron brad in the boat behind him, not 538 00:31:59,680 --> 00:32:02,680 Speaker 1: so reasontly Brave made the catch on top of his 539 00:32:02,720 --> 00:32:05,080 Speaker 1: three receptions in the Super Bowl itself, and if the 540 00:32:05,120 --> 00:32:08,320 Speaker 1: trophy had gone to the bottom, Brady does have six 541 00:32:08,360 --> 00:32:12,200 Speaker 1: more at home after all. But still, in this odd time, 542 00:32:12,320 --> 00:32:15,360 Speaker 1: the exuberance in the face of a pandemic, you have 543 00:32:15,400 --> 00:32:18,680 Speaker 1: to wonder whether this you only live once trade may 544 00:32:18,840 --> 00:32:21,840 Speaker 1: be going just a bit too far. That does it 545 00:32:21,920 --> 00:32:24,479 Speaker 1: for this episode of Wall Street Week, I'm David Weston, 546 00:32:24,800 --> 00:32:26,680 Speaker 1: Mrs Bloomberg. See you next week.