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. The US 3 00:00:06,400 --> 00:00:09,880 Speaker 1: economy continues to send mixed signals. The financial stories that 4 00:00:10,000 --> 00:00:13,560 Speaker 1: cheap 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 --> 00:00:31,240 Speaker 1: David Weston from Bloomberg Radio. A nation recoils in horror 10 00:00:31,440 --> 00:00:33,919 Speaker 1: and the markets look the other way on hopes of 11 00:00:33,920 --> 00:00:37,599 Speaker 1: a brighter tomorrow. This is Bloomberg Wall Street Week. I'm 12 00:00:37,680 --> 00:00:41,040 Speaker 1: David Weston. Just when you thought it couldn't get any worse, 13 00:00:41,400 --> 00:00:45,200 Speaker 1: it did. On top of a pandemic and a cratering economy, 14 00:00:45,479 --> 00:00:48,640 Speaker 1: we faced a week of demonstrations and riots as people 15 00:00:48,680 --> 00:00:51,360 Speaker 1: took to the streets to protest the brutal killing of 16 00:00:51,360 --> 00:00:55,320 Speaker 1: a black man in Minneapolis, and President Trump he said 17 00:00:55,400 --> 00:00:58,600 Speaker 1: he would send in federal troops to quell the disturbances. 18 00:00:58,880 --> 00:01:01,880 Speaker 1: We asked Columbia Economy Jeffrey Sachs about the causes of 19 00:01:01,880 --> 00:01:04,880 Speaker 1: this chronic inequality and what could be done about it. 20 00:01:05,160 --> 00:01:08,640 Speaker 1: I think digitization has played a big role in both 21 00:01:08,880 --> 00:01:13,640 Speaker 1: raising overall output but shifting it to a smaller and 22 00:01:13,720 --> 00:01:19,640 Speaker 1: smaller part of society, and the COVID epidemic is probably 23 00:01:20,840 --> 00:01:25,440 Speaker 1: going to result in a dramatic increased concentration of wealth. 24 00:01:25,880 --> 00:01:31,520 Speaker 1: Think about it. Jeffrey Dizos, owner of Amazon, founder of Amazon, 25 00:01:33,240 --> 00:01:40,000 Speaker 1: has increased his wealth by an estimated thirty five billion 26 00:01:40,080 --> 00:01:43,479 Speaker 1: dollars since the start of this year, at a time 27 00:01:43,520 --> 00:01:49,440 Speaker 1: that we have mass unemployment. We have the greatest unemployment, 28 00:01:49,960 --> 00:01:55,080 Speaker 1: the largest loss of jobs since the Great Depression, rivaling 29 00:01:55,120 --> 00:01:58,800 Speaker 1: the Great Depression. And yet the stock market is up 30 00:01:59,640 --> 00:02:07,480 Speaker 1: and uh some of the big tech UH Titans are 31 00:02:07,800 --> 00:02:11,000 Speaker 1: booming in their wealth. So what's happening, I think, is 32 00:02:11,080 --> 00:02:15,280 Speaker 1: that we're seeing this dramatic wiping out of a large 33 00:02:15,360 --> 00:02:19,360 Speaker 1: part of our economy, the brick and mortar sector, a 34 00:02:19,480 --> 00:02:23,280 Speaker 1: huge amount of shifting online, and that is part of 35 00:02:23,320 --> 00:02:27,120 Speaker 1: this digital trend that already has been leading to the 36 00:02:27,160 --> 00:02:30,480 Speaker 1: concentration of income and wealth. When the dust settles, I'm 37 00:02:30,520 --> 00:02:35,399 Speaker 1: afraid we're gonna probably have the greatest increase of inequality 38 00:02:35,480 --> 00:02:37,800 Speaker 1: that we've ever had in a short period of time, 39 00:02:39,600 --> 00:02:42,240 Speaker 1: which is saying a good deal because going into this 40 00:02:42,280 --> 00:02:44,400 Speaker 1: before the pandemic, we were not in great shape, and 41 00:02:44,400 --> 00:02:46,920 Speaker 1: inequality it was growing to a substantial degree. There are 42 00:02:46,919 --> 00:02:50,120 Speaker 1: remarkable statistics. I know you've seen that. For example, back 43 00:02:50,120 --> 00:02:54,640 Speaker 1: in seventeen, the net worth of the media and African 44 00:02:54,639 --> 00:02:58,600 Speaker 1: American family was ten percent that of the median white family. 45 00:02:58,639 --> 00:03:00,120 Speaker 1: So we had a problem going in and then, as 46 00:03:00,160 --> 00:03:01,880 Speaker 1: you point out, if you look at the COVID loss 47 00:03:01,919 --> 00:03:05,680 Speaker 1: of jobs, it was greatly disproportionate on Hispanics and on blacks. 48 00:03:06,320 --> 00:03:08,840 Speaker 1: What can we do to remedy that at this point 49 00:03:08,840 --> 00:03:10,560 Speaker 1: because what we're seeing right now I think it is 50 00:03:10,600 --> 00:03:14,800 Speaker 1: certainly about police brutality, but it's about much more. It's 51 00:03:14,880 --> 00:03:18,680 Speaker 1: probably the case that when the calculations are made carefully, 52 00:03:18,760 --> 00:03:23,519 Speaker 1: that the richest twenty Americans or so all white I 53 00:03:24,000 --> 00:03:28,320 Speaker 1: believe to be the case, have more net worth than 54 00:03:28,480 --> 00:03:32,800 Speaker 1: all the financial wealth of the African American forty million 55 00:03:33,120 --> 00:03:37,800 Speaker 1: people in American society. Don't. I don't guarantee the number. 56 00:03:37,880 --> 00:03:40,040 Speaker 1: I say this has to be looked at. But these 57 00:03:40,040 --> 00:03:45,320 Speaker 1: are the relative orders of magnitude that we're talking about 58 00:03:44,480 --> 00:03:48,640 Speaker 1: the top billionaires. If you take the top twenty thirty, 59 00:03:49,160 --> 00:03:53,040 Speaker 1: I have well over a trillion dollars of net worth. 60 00:03:53,720 --> 00:03:57,520 Speaker 1: That's something like the financial wealth in the African American 61 00:03:57,560 --> 00:04:01,480 Speaker 1: community of forty million people. It's unning what is happening 62 00:04:01,480 --> 00:04:07,520 Speaker 1: in terms of the shocking, unbelievable, unprecedented wealth at the 63 00:04:07,680 --> 00:04:13,040 Speaker 1: very very top. He's himself with a hundred fifty billion 64 00:04:13,120 --> 00:04:16,960 Speaker 1: dollars of net worth, something we cannot get our heads around. 65 00:04:17,600 --> 00:04:21,240 Speaker 1: And then people losing jobs by the tens of millions, 66 00:04:21,279 --> 00:04:27,200 Speaker 1: with absolutely a disproportionate burden being felt by minority communities. 67 00:04:27,240 --> 00:04:30,320 Speaker 1: This is desperate. What do we have to do about it? 68 00:04:30,360 --> 00:04:34,080 Speaker 1: We have to become a decent society where everybody has 69 00:04:34,120 --> 00:04:39,320 Speaker 1: access to healthcare, everybody has access to education. Uh, you 70 00:04:39,360 --> 00:04:42,760 Speaker 1: don't have a generation of the students with one and 71 00:04:42,760 --> 00:04:47,279 Speaker 1: a half trillion dollars of debt now completely unpayable because 72 00:04:47,279 --> 00:04:52,320 Speaker 1: the prospects have worsened dramatically, But it was unpayable beforehand. 73 00:04:52,760 --> 00:04:57,200 Speaker 1: And that requires companies like Amazon to pay some taxes, 74 00:04:57,600 --> 00:05:00,400 Speaker 1: not to ask for tax breaks from around the country, 75 00:05:00,400 --> 00:05:03,320 Speaker 1: but to pay their taxes. It requires the richest people 76 00:05:03,320 --> 00:05:06,760 Speaker 1: to pay taxes. It requires, in my view of tax 77 00:05:06,839 --> 00:05:11,039 Speaker 1: on wealth, which is so concentrated right now, that we're 78 00:05:11,040 --> 00:05:14,320 Speaker 1: going to wake up. In fact, we're not even waking up. 79 00:05:14,360 --> 00:05:17,080 Speaker 1: We know it, we see it. We're awake right now 80 00:05:17,160 --> 00:05:22,400 Speaker 1: that the budget deficit will be some of GDP perhaps, 81 00:05:23,080 --> 00:05:27,279 Speaker 1: and then we're going to be told by the Conservatives 82 00:05:27,360 --> 00:05:30,760 Speaker 1: representing the voices of the richest people, Oh, we can't 83 00:05:30,760 --> 00:05:34,720 Speaker 1: do anymore. We're gonna have to cut benefits to the 84 00:05:34,760 --> 00:05:39,800 Speaker 1: poor because of the large budget deficits. So it's an 85 00:05:39,880 --> 00:05:44,640 Speaker 1: extraordinary time by any standard, David. And the concentration of 86 00:05:44,720 --> 00:05:51,599 Speaker 1: wealth not a deliberate part of this epidemic, but it 87 00:05:51,680 --> 00:05:56,040 Speaker 1: seems to be the fallout of the epidemic is extraordinary. 88 00:05:56,240 --> 00:06:00,160 Speaker 1: One more point I would add on this. The FED has, 89 00:06:00,200 --> 00:06:05,440 Speaker 1: of course issue the trillions of dollars of new credits, 90 00:06:05,440 --> 00:06:08,240 Speaker 1: but the way our system works, it's not credits for 91 00:06:08,720 --> 00:06:13,880 Speaker 1: broad society. It's credits that go through the already large 92 00:06:13,960 --> 00:06:17,960 Speaker 1: concentrations of wealth and allow them to buy up even 93 00:06:18,000 --> 00:06:22,480 Speaker 1: more of the assets on a fire sale basis so easy. 94 00:06:22,560 --> 00:06:25,880 Speaker 1: FED credits after two thousand and eight was part of 95 00:06:26,520 --> 00:06:30,479 Speaker 1: the increased concentration of wealth after two thousand eight. Now 96 00:06:30,560 --> 00:06:34,680 Speaker 1: we're seeing it again in two thousand twenty that what 97 00:06:34,839 --> 00:06:38,120 Speaker 1: the FEDS doing to keep the economy from collapsing is 98 00:06:38,200 --> 00:06:44,080 Speaker 1: also going to have an effect on increasing the already 99 00:06:44,120 --> 00:06:48,560 Speaker 1: almost unimaginable inequality of wealth. That was Professor Jeffrey Sachs 100 00:06:48,560 --> 00:06:51,279 Speaker 1: of Columbia. Coming up, we hear from the Chairman of 101 00:06:51,279 --> 00:06:54,760 Speaker 1: the SEC, J Clayton, about how the markets are working 102 00:06:54,880 --> 00:06:58,560 Speaker 1: despite all the bad news and the volatility. That's next 103 00:06:58,600 --> 00:07:07,640 Speaker 1: on Wall Street Week on bloom Board. This is Bloomberg 104 00:07:07,640 --> 00:07:11,680 Speaker 1: Will Street Week with David Weston from Bloomberg Radio. The 105 00:07:11,720 --> 00:07:14,400 Speaker 1: markets have been put through their paces this year so far, 106 00:07:14,800 --> 00:07:18,239 Speaker 1: from a pandemic to an academic collapse to civil unrest, 107 00:07:18,640 --> 00:07:21,640 Speaker 1: but through it all, the man responsible for overseeing those markets, 108 00:07:21,760 --> 00:07:24,960 Speaker 1: SEC Chairman Jay Clayton says that they have held up well. 109 00:07:25,600 --> 00:07:30,600 Speaker 1: The bedrock of our system is good financial information UM 110 00:07:30,640 --> 00:07:33,080 Speaker 1: and this this asymmetry, you can call it, an on 111 00:07:33,200 --> 00:07:37,960 Speaker 1: level playing field with Chinese listed companies versus other companies 112 00:07:38,440 --> 00:07:42,000 Speaker 1: from non US jurisdictions listed, has gone on for too 113 00:07:42,040 --> 00:07:47,120 Speaker 1: long and first step, let's make sure investors understand it. 114 00:07:47,880 --> 00:07:51,320 Speaker 1: Second step, and the administration is now looking at this. 115 00:07:52,000 --> 00:07:54,760 Speaker 1: UH Senator Kennedy and Van hollend have a bill that 116 00:07:54,840 --> 00:07:57,680 Speaker 1: has a very sensible approach to this, which is give 117 00:07:57,760 --> 00:08:04,920 Speaker 1: people time to level that asymmetric or on level playing field. Uh, 118 00:08:05,200 --> 00:08:06,960 Speaker 1: now we know about it. Now we gotta figure out 119 00:08:07,000 --> 00:08:09,800 Speaker 1: what we're gonna do about it. Well, it is disclosure 120 00:08:09,920 --> 00:08:11,960 Speaker 1: enough in this situation as a practical letter. I mean 121 00:08:12,080 --> 00:08:14,160 Speaker 1: there there are now proposals up on the hill as 122 00:08:14,160 --> 00:08:16,040 Speaker 1: you know, the Senate has passed it would say if 123 00:08:16,040 --> 00:08:17,680 Speaker 1: a company, I think it's the rules. If you don't 124 00:08:17,800 --> 00:08:20,440 Speaker 1: allow access to the audit papers for three concent of years, 125 00:08:20,440 --> 00:08:23,840 Speaker 1: you get delisted. Do you need that kind of power? Well, 126 00:08:24,200 --> 00:08:27,480 Speaker 1: first step disclosure. But I but I do think that 127 00:08:28,040 --> 00:08:31,880 Speaker 1: consider whether more to level the playing field. And I 128 00:08:31,920 --> 00:08:34,680 Speaker 1: think the bill you mentioned that, the Kennedy van Hollenville, 129 00:08:34,760 --> 00:08:36,719 Speaker 1: it's very sensible way to look at this if you're 130 00:08:36,720 --> 00:08:38,800 Speaker 1: going to do more, because it gives people a period 131 00:08:38,800 --> 00:08:41,920 Speaker 1: of time, uh to level the playing field before you 132 00:08:41,920 --> 00:08:44,000 Speaker 1: would take any action. Uh. You know, I'm not a 133 00:08:44,000 --> 00:08:47,080 Speaker 1: guy who wants to take like precipitous Uh, you know, 134 00:08:47,240 --> 00:08:49,160 Speaker 1: hit the nail on the head with the hammer tomorrow. 135 00:08:49,679 --> 00:08:52,800 Speaker 1: But you know, I like the way they've approached it 136 00:08:52,840 --> 00:08:54,600 Speaker 1: and that there's a period of time to come into 137 00:08:54,600 --> 00:08:57,640 Speaker 1: compliance and if you don't, then it's time to um 138 00:08:58,120 --> 00:09:02,440 Speaker 1: take take measures beyond us disclosed j from You're having 139 00:09:02,440 --> 00:09:04,920 Speaker 1: watched this over some period of time. Uh, And I 140 00:09:04,920 --> 00:09:06,920 Speaker 1: know you don't want to name any individual companies, so 141 00:09:07,000 --> 00:09:09,520 Speaker 1: I won't name any individual companies. But is it across 142 00:09:09,559 --> 00:09:12,040 Speaker 1: the board with Chinese public trading companies or is it 143 00:09:12,080 --> 00:09:14,160 Speaker 1: more problem with some of the smaller or maybe up 144 00:09:14,200 --> 00:09:15,920 Speaker 1: and coming ones as opposed to some of the really 145 00:09:15,960 --> 00:09:19,040 Speaker 1: big megacap companies that we all know the names of 146 00:09:19,440 --> 00:09:22,679 Speaker 1: that have been publicly traded for a while. Well, well, David, 147 00:09:22,720 --> 00:09:24,760 Speaker 1: you you you bring up a good question. Uh, but 148 00:09:25,520 --> 00:09:30,040 Speaker 1: a point that applies in every market. Financial controls, audit 149 00:09:30,080 --> 00:09:32,800 Speaker 1: procedures and the like. They're different for larger companies than 150 00:09:32,840 --> 00:09:36,720 Speaker 1: they are for smaller companies. And uh, there are a 151 00:09:36,760 --> 00:09:41,120 Speaker 1: lot of smaller companies from that have operations in China 152 00:09:41,160 --> 00:09:43,839 Speaker 1: that are listed on our markets, and investors might look 153 00:09:43,880 --> 00:09:46,720 Speaker 1: at those differently from the multi caaps or or from 154 00:09:46,800 --> 00:09:50,199 Speaker 1: state owned enterprises. And uh, I'm not I'm not an 155 00:09:50,240 --> 00:09:53,360 Speaker 1: expert on international investing, but I but I do know 156 00:09:53,520 --> 00:09:55,720 Speaker 1: enough to know that you shouldn't look at a particular 157 00:09:55,800 --> 00:09:59,000 Speaker 1: jurisdiction in a monolithic way. Uh, you shouldn't. You should 158 00:09:59,040 --> 00:10:01,040 Speaker 1: look at that as to whether you're looking at a 159 00:10:01,040 --> 00:10:05,120 Speaker 1: smaller company, Uh, an international company that derives a lot 160 00:10:05,120 --> 00:10:07,760 Speaker 1: of its revenues from outside of that jurisdiction, or a 161 00:10:07,800 --> 00:10:14,000 Speaker 1: state of enterprises which has its own risks and reward profiles. Jay, 162 00:10:14,559 --> 00:10:17,520 Speaker 1: do you talk with your counterparts who are security regulars 163 00:10:17,640 --> 00:10:20,680 Speaker 1: in Beijing? In China? I mean, there have been times 164 00:10:20,679 --> 00:10:22,640 Speaker 1: when the Chinese government said, we really want to try 165 00:10:22,640 --> 00:10:25,360 Speaker 1: to coordinate, we want to harmonize, we want to open 166 00:10:25,440 --> 00:10:28,880 Speaker 1: up our markets, our securities markets. Is there any prospect 167 00:10:28,920 --> 00:10:32,800 Speaker 1: of actually some of that harmonization coming about? Uh? Look, 168 00:10:32,800 --> 00:10:36,160 Speaker 1: we do talk. UM talked to my my counterparts around 169 00:10:36,160 --> 00:10:39,640 Speaker 1: the world. Um. There's nothing that I have said to 170 00:10:39,679 --> 00:10:41,480 Speaker 1: you that I that I haven't said to them, and 171 00:10:41,480 --> 00:10:44,599 Speaker 1: that this is a problem that I believe needs to 172 00:10:44,640 --> 00:10:48,480 Speaker 1: be addressed. Um, And Uh, I hope it can be. 173 00:10:50,320 --> 00:10:53,880 Speaker 1: Are you hopeful do you think it will be? I'm look, 174 00:10:53,880 --> 00:10:56,839 Speaker 1: I'm an optimistic guy, but I'm but I'm optimistic because 175 00:10:56,840 --> 00:10:58,920 Speaker 1: I know that at some point, Uh. You know, I 176 00:10:59,120 --> 00:11:00,880 Speaker 1: hope is not a strato of ge You gotta you 177 00:11:00,960 --> 00:11:03,480 Speaker 1: gotta do other things as well. So you said the 178 00:11:03,520 --> 00:11:06,520 Speaker 1: legislations pending has been passed in the Senate. Uh sense, 179 00:11:06,760 --> 00:11:08,960 Speaker 1: I think you said, sensible way of approaching it? Is 180 00:11:09,000 --> 00:11:10,800 Speaker 1: it doable? Is it's something as you look at the 181 00:11:10,840 --> 00:11:14,960 Speaker 1: SEC could enforce without too much difficulty? Oh? Oh yes, 182 00:11:15,080 --> 00:11:17,000 Speaker 1: Now it's a it's a it's a sensible piece of 183 00:11:17,080 --> 00:11:20,679 Speaker 1: legislation and it and it uh captures the issue in 184 00:11:20,720 --> 00:11:23,600 Speaker 1: a way like I I try very hard not to 185 00:11:23,880 --> 00:11:26,679 Speaker 1: uh to tell Congress what to do. It's the other 186 00:11:26,720 --> 00:11:29,400 Speaker 1: way around, they tell what to do. Um. But this 187 00:11:29,480 --> 00:11:31,560 Speaker 1: is a this is a very sensible way to approach 188 00:11:31,840 --> 00:11:35,360 Speaker 1: a parliament's been around for a while. What about some 189 00:11:35,440 --> 00:11:38,280 Speaker 1: of the issues you're working on before the pandemic came up, 190 00:11:38,400 --> 00:11:41,800 Speaker 1: talk about like reviving revisions to proxy rules. Do those 191 00:11:41,840 --> 00:11:43,400 Speaker 1: continue a pace or do you have to put those 192 00:11:43,400 --> 00:11:46,839 Speaker 1: to one side? Now? We we have not put our 193 00:11:47,120 --> 00:11:50,280 Speaker 1: policy making agenda to the side. Um. We are we 194 00:11:50,360 --> 00:11:54,160 Speaker 1: are a very when you talk about organizations um being 195 00:11:54,160 --> 00:11:58,360 Speaker 1: affected in different ways by the operational constraints of social 196 00:11:58,400 --> 00:12:03,720 Speaker 1: distancing and uh uh the health and safety uh structures 197 00:12:03,760 --> 00:12:06,960 Speaker 1: that we live by. We're a very lucky organization where 198 00:12:07,000 --> 00:12:11,560 Speaker 1: we're we can operate fairly effectively UM in a remote 199 00:12:11,840 --> 00:12:16,880 Speaker 1: UH capacity, and we've been doing so. And look the 200 00:12:17,440 --> 00:12:21,480 Speaker 1: women and men in those policy making divisions. UH, they're 201 00:12:21,480 --> 00:12:25,400 Speaker 1: committed to improving our markets and modernizing our markets. I'm 202 00:12:25,440 --> 00:12:27,120 Speaker 1: not going to put that on hold unless i have to. 203 00:12:28,280 --> 00:12:30,000 Speaker 1: And so, for example, the proxy rules, where do they 204 00:12:30,040 --> 00:12:34,080 Speaker 1: stand now? We're in there are are there are our 205 00:12:34,120 --> 00:12:36,720 Speaker 1: agenda to be finished in this fiscal year, and I 206 00:12:36,800 --> 00:12:41,360 Speaker 1: expect to haven't finished in this fiscal year. UH. I'm 207 00:12:41,440 --> 00:12:44,680 Speaker 1: so pleased with the rigor that our staff has applied 208 00:12:45,080 --> 00:12:47,720 Speaker 1: to all the comments we've received, and I think we're 209 00:12:47,720 --> 00:12:53,120 Speaker 1: on schedule to finish them UH during the fiscal year. UM. 210 00:12:53,640 --> 00:12:57,160 Speaker 1: People don't know about the SEC fifical year, so by 211 00:12:57,200 --> 00:12:59,080 Speaker 1: the end of this by the end of this period. 212 00:12:59,840 --> 00:13:01,760 Speaker 1: And how do you feel about bringing people back to 213 00:13:01,760 --> 00:13:03,559 Speaker 1: work at the SEC. I think you said at least 214 00:13:03,640 --> 00:13:08,720 Speaker 1: until July fifteen. Do you think that that's realistic? Well, David, 215 00:13:09,040 --> 00:13:12,880 Speaker 1: I do think it's UM. It is realistic because we 216 00:13:12,920 --> 00:13:16,199 Speaker 1: are able to function. Every organization is different, and I'm 217 00:13:16,200 --> 00:13:20,959 Speaker 1: not making choices for other organizations, but this organization functions 218 00:13:21,080 --> 00:13:24,880 Speaker 1: very well in a virtual environment. There are a number 219 00:13:24,920 --> 00:13:28,719 Speaker 1: of functions that we have that would improve UM with 220 00:13:28,760 --> 00:13:31,040 Speaker 1: people on site. There are some functions where you do 221 00:13:31,160 --> 00:13:33,640 Speaker 1: need people inside. Look, we live in a we live 222 00:13:33,679 --> 00:13:37,040 Speaker 1: in a country where due process is important, and we 223 00:13:37,120 --> 00:13:41,439 Speaker 1: have people whom we're bringing actions against, and if they 224 00:13:41,520 --> 00:13:46,679 Speaker 1: want the benefit of being interviewed face to face or 225 00:13:47,679 --> 00:13:51,559 Speaker 1: being able to in as virtual face to face environment 226 00:13:51,559 --> 00:13:53,360 Speaker 1: as possible, we need to provide that to him. We're 227 00:13:53,760 --> 00:13:56,120 Speaker 1: you know, we believe in due process. So those types 228 00:13:56,120 --> 00:13:59,880 Speaker 1: of things, UM, we have to do. But by and law, 229 00:14:00,280 --> 00:14:03,600 Speaker 1: we can operate very effectively remotely. And what I want 230 00:14:03,600 --> 00:14:07,720 Speaker 1: to do is as as things get back to normal, 231 00:14:07,800 --> 00:14:10,439 Speaker 1: I hope they do. I hope they do bring bring 232 00:14:10,480 --> 00:14:14,240 Speaker 1: people back in those areas that are most acutely affected 233 00:14:14,280 --> 00:14:19,200 Speaker 1: by remote working, and then go from there. UM, keeping 234 00:14:19,200 --> 00:14:23,000 Speaker 1: health and safety front of mind at all times. So 235 00:14:23,920 --> 00:14:26,520 Speaker 1: I have the luxury of that given the way we work. 236 00:14:26,720 --> 00:14:31,040 Speaker 1: I know others others don't, UM, but That's how I'm 237 00:14:31,040 --> 00:14:34,680 Speaker 1: looking at it. Here that was SEC Chairman Jay Clayton 238 00:14:35,280 --> 00:14:38,920 Speaker 1: coming up. We ask Washington veteran former Defense Secretary Leon 239 00:14:39,000 --> 00:14:42,239 Speaker 1: Panetta what the government needs to do to address a pandemic, 240 00:14:42,680 --> 00:14:46,200 Speaker 1: a steep economic downturn and still unrest coming all at 241 00:14:46,240 --> 00:14:49,000 Speaker 1: the same time. That's next on Wall Street Weekend on 242 00:14:49,200 --> 00:15:02,280 Speaker 1: Bloomberger This is Bloomberg Willis week with David Weston from 243 00:15:02,400 --> 00:15:05,280 Speaker 1: Bloomberg Radio. For the first time in history, the United 244 00:15:05,280 --> 00:15:09,040 Speaker 1: States faces a pandemic, an economic downturn, and civil unrest 245 00:15:09,080 --> 00:15:12,320 Speaker 1: all at the same time. Leon Panetta faced his share 246 00:15:12,320 --> 00:15:14,720 Speaker 1: of crisis when he served in government, including as chief 247 00:15:14,720 --> 00:15:17,760 Speaker 1: of Staff to President Clinton when Jesse Jackson was giving 248 00:15:17,760 --> 00:15:20,560 Speaker 1: those remarks on the Mall. He went on to serve 249 00:15:20,600 --> 00:15:23,360 Speaker 1: as the Director of the CIA and the Secretary of Defense, 250 00:15:23,600 --> 00:15:26,680 Speaker 1: and his experience taught him how an administration deals with 251 00:15:26,720 --> 00:15:30,400 Speaker 1: a series of crises that come all at the same time. Well, 252 00:15:30,440 --> 00:15:34,440 Speaker 1: I I always found, uh, chief of Staff and then 253 00:15:34,520 --> 00:15:39,000 Speaker 1: later at CIA Director and Secretary of Defense, that when 254 00:15:39,040 --> 00:15:43,080 Speaker 1: facing a crisis, and when facing a series of crisis 255 00:15:43,120 --> 00:15:47,560 Speaker 1: as we are now, the best approaches to gather the 256 00:15:47,640 --> 00:15:51,840 Speaker 1: National Security Council together UH and determine what the best 257 00:15:51,880 --> 00:15:56,160 Speaker 1: strategy is to deal with each of these crises UH, 258 00:15:56,240 --> 00:16:00,000 Speaker 1: and to develop auctions obviously to present to the President, 259 00:16:00,520 --> 00:16:04,160 Speaker 1: but to try to develop at least a common strategy 260 00:16:04,720 --> 00:16:07,840 Speaker 1: that everybody can support and and that is in the 261 00:16:07,920 --> 00:16:11,480 Speaker 1: best interests of the country in terms of dealing with 262 00:16:11,520 --> 00:16:14,480 Speaker 1: that crisis. So I think this is a moment when 263 00:16:14,480 --> 00:16:18,160 Speaker 1: the president needs to listen to the advice of his 264 00:16:18,240 --> 00:16:23,280 Speaker 1: most experienced advisers. That's critically important at a time when 265 00:16:23,280 --> 00:16:27,560 Speaker 1: you're facing this kind of serious threat to the country. Well, 266 00:16:27,640 --> 00:16:29,720 Speaker 1: we heard from one senior advisor to day in a 267 00:16:29,800 --> 00:16:32,840 Speaker 1: Secretary Defense, but it was public, it wasn't behind closed doors. 268 00:16:33,480 --> 00:16:35,640 Speaker 1: Is there any doubt that the president has the authority 269 00:16:35,640 --> 00:16:37,800 Speaker 1: of the authority to send in photo troops if he 270 00:16:37,840 --> 00:16:41,120 Speaker 1: so chooses. There is this Insurrection Act, Well, look, I 271 00:16:41,200 --> 00:16:44,640 Speaker 1: think it's it's clear that the president could assert the 272 00:16:44,680 --> 00:16:51,200 Speaker 1: Insurrection Act. But again, uh, this country has recognized that 273 00:16:51,480 --> 00:16:54,960 Speaker 1: the purpose of our military is to be trained to 274 00:16:55,080 --> 00:16:59,760 Speaker 1: confront foreign adversaries in combat, not to be used for 275 00:17:00,080 --> 00:17:04,560 Speaker 1: a control or law enforcement. A posse Commentatis Act was 276 00:17:04,640 --> 00:17:07,760 Speaker 1: passed in the eighteen hundreds for the purpose of making 277 00:17:07,840 --> 00:17:10,800 Speaker 1: clear that the US military ought not to take the 278 00:17:10,840 --> 00:17:14,880 Speaker 1: place of of law enforcement. And so for that reason, 279 00:17:15,200 --> 00:17:19,159 Speaker 1: I commend Secretary of the Secretary of Defense esper Or 280 00:17:19,240 --> 00:17:24,080 Speaker 1: taking the position that he took, because military leaders almost 281 00:17:24,119 --> 00:17:28,360 Speaker 1: in unison, UH, do not believe that our military ought 282 00:17:28,400 --> 00:17:32,080 Speaker 1: to be used, uh to to fight our own people. 283 00:17:32,160 --> 00:17:34,719 Speaker 1: It ought to be used to fight foreign enemies. Our 284 00:17:34,800 --> 00:17:37,200 Speaker 1: federal troops even trained to do this. I mean to 285 00:17:37,200 --> 00:17:40,200 Speaker 1: pick up on your point. Are they trained to deal 286 00:17:40,240 --> 00:17:42,159 Speaker 1: with crowd control and things like that? Because we have, 287 00:17:42,280 --> 00:17:45,640 Speaker 1: sadly in our history seen instances where some military brunn 288 00:17:45,640 --> 00:17:47,520 Speaker 1: and who are not properly trained and we had some 289 00:17:47,720 --> 00:17:50,800 Speaker 1: tragic results such as can't stay You know the military, well, 290 00:17:51,320 --> 00:17:53,400 Speaker 1: the federal troops. Are some of the federal troops trained 291 00:17:53,440 --> 00:17:55,720 Speaker 1: to really be effective in this situation? Is this the 292 00:17:55,760 --> 00:17:58,320 Speaker 1: best tool in the tool kit? I don't believe it is, 293 00:17:58,400 --> 00:18:04,119 Speaker 1: because what why we train our military is to engage 294 00:18:04,119 --> 00:18:07,159 Speaker 1: in combat with a foreign adversary. That's what they're trained 295 00:18:07,200 --> 00:18:10,679 Speaker 1: to do. They're not trained on riot control, They're not 296 00:18:10,760 --> 00:18:14,920 Speaker 1: trained on crowd control, they're not trained on law enforcement. 297 00:18:15,080 --> 00:18:17,160 Speaker 1: At the same time, we have a difficult problem here 298 00:18:17,160 --> 00:18:19,359 Speaker 1: that I'm know I'm sure you appreciate, which is we 299 00:18:19,480 --> 00:18:22,240 Speaker 1: have I think the vast majority of protesters who are 300 00:18:22,320 --> 00:18:25,480 Speaker 1: peaceful are exercising their first Amment rights to petition for 301 00:18:25,520 --> 00:18:28,760 Speaker 1: redressing agreevances. But there are clearly some bad actors in 302 00:18:28,800 --> 00:18:31,080 Speaker 1: some of these demonstrations who are prone to violence and 303 00:18:31,160 --> 00:18:35,000 Speaker 1: trying to instigate something. But put aside the federal military 304 00:18:35,080 --> 00:18:37,440 Speaker 1: as a tool, what is the best way for the government, 305 00:18:37,440 --> 00:18:40,160 Speaker 1: the federal government, state governed to sort those two things out, 306 00:18:40,240 --> 00:18:43,840 Speaker 1: so we maintain law and order, we protect people and property, 307 00:18:44,080 --> 00:18:46,400 Speaker 1: but we also preserve the rights of those who want 308 00:18:46,400 --> 00:18:50,800 Speaker 1: to peacefully protest that horrific instance out in Minneapolis. Well, 309 00:18:51,160 --> 00:18:54,000 Speaker 1: I think it would be preferable rather than the president 310 00:18:54,359 --> 00:18:58,000 Speaker 1: asserting that somehow he'll take control of the situation if 311 00:18:58,000 --> 00:19:00,680 Speaker 1: others don't, I think the president ought to be offering 312 00:19:01,160 --> 00:19:06,160 Speaker 1: law enforcement assistance to states and local communities so that 313 00:19:06,240 --> 00:19:08,840 Speaker 1: they can in fact determine whether or not there are 314 00:19:08,960 --> 00:19:13,439 Speaker 1: criminal elements that are trying to take advantage of these protests. 315 00:19:13,480 --> 00:19:17,440 Speaker 1: That's a law enforcement issue, that's an FBI issue, that's 316 00:19:17,440 --> 00:19:21,680 Speaker 1: an intelligence issue. Frankly, Uh, the federal government gets good 317 00:19:21,680 --> 00:19:25,879 Speaker 1: intelligence on those that are trying to conduct those kinds 318 00:19:25,920 --> 00:19:28,959 Speaker 1: of criminal activities, and so that ought to be shared 319 00:19:29,040 --> 00:19:33,240 Speaker 1: with with state and local law enforcement so that they 320 00:19:33,280 --> 00:19:37,280 Speaker 1: can play the primary role in trying to maintain order 321 00:19:37,600 --> 00:19:40,679 Speaker 1: in their communities and in their states. Mrs Secretary, what 322 00:19:40,720 --> 00:19:43,320 Speaker 1: could we as a country learn from the military on 323 00:19:43,359 --> 00:19:46,280 Speaker 1: the subject of race, put aside their active involvement in 324 00:19:46,320 --> 00:19:49,119 Speaker 1: any peace commum missions. But but the the U. S. 325 00:19:49,160 --> 00:19:52,440 Speaker 1: Military was there ahead of allow of the rest of 326 00:19:51,800 --> 00:19:54,320 Speaker 1: the of the society, going back to the days of 327 00:19:54,359 --> 00:19:57,280 Speaker 1: Harry S. Truman when he was president, in integrating the military, 328 00:19:57,359 --> 00:19:59,560 Speaker 1: you have a much more integrated, I think military than 329 00:19:59,640 --> 00:20:02,560 Speaker 1: most companies do across the country. What have you learned 330 00:20:02,560 --> 00:20:05,160 Speaker 1: from that? What could you teach society? Because goodness knows, 331 00:20:05,480 --> 00:20:08,040 Speaker 1: pas we need to learn some things fast. I think 332 00:20:08,040 --> 00:20:10,800 Speaker 1: the military is a is a good example for the 333 00:20:10,840 --> 00:20:17,520 Speaker 1: rest of the country in terms of allowing allowing minorities, 334 00:20:17,720 --> 00:20:21,720 Speaker 1: allowing others to be able to serve their country. Uh, 335 00:20:21,760 --> 00:20:27,320 Speaker 1: and to be part of a unit working together to 336 00:20:27,440 --> 00:20:33,480 Speaker 1: accomplish a common mission. UH. My experiences that you know, 337 00:20:33,560 --> 00:20:37,159 Speaker 1: whether you're whether you're black, or whether you're brown, or 338 00:20:37,160 --> 00:20:40,960 Speaker 1: whether you're a woman. Uh, that you should have the 339 00:20:41,040 --> 00:20:44,840 Speaker 1: opportunity to serve this country. That was former Secretary of 340 00:20:44,840 --> 00:20:48,280 Speaker 1: Defense Leon Poeta. Coming up, We wrap up the week 341 00:20:48,320 --> 00:20:52,080 Speaker 1: with our special contributor Larry Summers. This is Wall Street 342 00:20:52,119 --> 00:21:01,359 Speaker 1: Read on Bloomberg. This is Bloomberg Wall Street Week with 343 00:21:01,480 --> 00:21:05,080 Speaker 1: David Weston from Bloomberg Radio. We wrap up our week 344 00:21:05,160 --> 00:21:07,840 Speaker 1: with Harvard's Larry Summers, who, of course was Second of 345 00:21:07,880 --> 00:21:10,879 Speaker 1: the Treasury and our is our very own special contributor 346 00:21:10,920 --> 00:21:12,800 Speaker 1: here on Wall Street Week. So, Larry, this has been 347 00:21:12,800 --> 00:21:15,399 Speaker 1: a tumultuous week. I think it's very to say. Every 348 00:21:15,480 --> 00:21:18,439 Speaker 1: day we've seen the video of demonstrations and yes riots 349 00:21:18,440 --> 00:21:21,600 Speaker 1: and yes looting across the country in response that tragic 350 00:21:21,600 --> 00:21:24,040 Speaker 1: instance in Minneapolis. At the same time, the equity mark 351 00:21:24,040 --> 00:21:26,560 Speaker 1: has just kept climbing higher and higher and higher. Why 352 00:21:26,600 --> 00:21:32,119 Speaker 1: don't the markets pay any attention to the evening news? Look, 353 00:21:33,359 --> 00:21:38,760 Speaker 1: it's as extraordinary a week as I've ever uh seen. 354 00:21:39,560 --> 00:21:45,920 Speaker 1: Someone said that we're living through the pandemic, the nine 355 00:21:46,000 --> 00:21:51,919 Speaker 1: economic collapse, the nineteen sixty eight civil unrest across America, 356 00:21:52,680 --> 00:21:57,760 Speaker 1: and the Andrew Jackson presidency all at once. I haven't 357 00:21:57,800 --> 00:22:03,679 Speaker 1: seen anything, lie kid. And before we talk about markets, 358 00:22:04,080 --> 00:22:10,920 Speaker 1: I think we have to acknowledge that the racial injustice 359 00:22:11,040 --> 00:22:16,600 Speaker 1: that has been pointed up uh by the dramatic events 360 00:22:16,800 --> 00:22:22,840 Speaker 1: now almost two weeks uh old, is something that our 361 00:22:22,840 --> 00:22:25,320 Speaker 1: country has been wrestling with for a long time and 362 00:22:25,440 --> 00:22:28,520 Speaker 1: is going to be wrestling with for a very long 363 00:22:28,960 --> 00:22:34,520 Speaker 1: uh time, uh to come. What happened on the streets 364 00:22:34,560 --> 00:22:41,360 Speaker 1: of Minneapolis just can't keep happening, and there's just been 365 00:22:41,440 --> 00:22:49,639 Speaker 1: a huge outpouring of anger and upset. And the critical 366 00:22:49,760 --> 00:22:55,480 Speaker 1: question for our democracy is going to be whether all 367 00:22:55,520 --> 00:23:02,080 Speaker 1: of that anguish and anger is channeled to instructively UH 368 00:23:02,280 --> 00:23:10,080 Speaker 1: into positive change or doesn't bring about that kind of progress, 369 00:23:10,200 --> 00:23:13,879 Speaker 1: in which case the cleavages in our society are only 370 00:23:13,960 --> 00:23:19,399 Speaker 1: going UH to get worse. The market really doesn't seem 371 00:23:19,440 --> 00:23:24,120 Speaker 1: like a very big thing relative to all of that. 372 00:23:24,400 --> 00:23:27,959 Speaker 1: The market's job is to make a judgment about the 373 00:23:28,000 --> 00:23:33,760 Speaker 1: profits that companies UH will learn, and in approximate sense 374 00:23:34,000 --> 00:23:38,000 Speaker 1: is cosmically important. As these events are, they probably don't 375 00:23:38,080 --> 00:23:41,840 Speaker 1: change UM what those earnings are going to be over 376 00:23:41,960 --> 00:23:46,960 Speaker 1: some interval. But I would caution that over long time 377 00:23:47,000 --> 00:23:51,680 Speaker 1: periods this kind of thing makes a very big difference. 378 00:23:52,440 --> 00:23:58,480 Speaker 1: If you think back, the country almost unraveled in UH 379 00:23:58,840 --> 00:24:03,800 Speaker 1: the late nineteen sixties behind the because of cleavage is 380 00:24:03,880 --> 00:24:10,240 Speaker 1: associated with the Vietnam War, because of strife over issues 381 00:24:10,440 --> 00:24:15,240 Speaker 1: of racial justice, and not immediately you know, if you 382 00:24:15,320 --> 00:24:17,800 Speaker 1: look at what happened to the level of stock prices 383 00:24:17,920 --> 00:24:23,160 Speaker 1: relative to other prices, the real sn p UH five hundred, 384 00:24:23,560 --> 00:24:28,320 Speaker 1: it had its worst long decade UM in the last 385 00:24:28,359 --> 00:24:33,000 Speaker 1: six or seven decades. In the decade that followed what 386 00:24:33,119 --> 00:24:37,240 Speaker 1: happened in nineteen sixty eight, you saw a huge drop 387 00:24:37,760 --> 00:24:44,120 Speaker 1: into seventy four or five with the Walster Watergate episode, 388 00:24:44,359 --> 00:24:47,960 Speaker 1: the oil shocks, all that, and then you saw further, 389 00:24:49,119 --> 00:24:56,920 Speaker 1: very steep UH decline UH into UH two. And so 390 00:24:57,880 --> 00:25:01,960 Speaker 1: how America deals with all this is going to be 391 00:25:02,480 --> 00:25:08,320 Speaker 1: profoundly important, I believe for America's health, and I don't 392 00:25:08,359 --> 00:25:12,200 Speaker 1: think America's corporations can be healthy if America is not 393 00:25:12,880 --> 00:25:17,280 Speaker 1: UM healthy. And I think enlightened business leaders have recognized that. 394 00:25:17,480 --> 00:25:23,199 Speaker 1: You've seen many many CEOs UH making that point UH 395 00:25:23,359 --> 00:25:29,000 Speaker 1: this week. UH. So the markets are optimistic, and I 396 00:25:29,040 --> 00:25:32,600 Speaker 1: hope the markets are right in their optimism about COVID. 397 00:25:32,720 --> 00:25:37,320 Speaker 1: I hope the markets are right in their optimism about 398 00:25:37,359 --> 00:25:43,360 Speaker 1: the society UH coming together. UM. I'm not sure they 399 00:25:43,359 --> 00:25:47,120 Speaker 1: are UH right. It seems to me there's a lot 400 00:25:47,240 --> 00:25:52,399 Speaker 1: of optimism right now, and I worry that people who 401 00:25:52,480 --> 00:25:58,200 Speaker 1: were very nervous two months ago are fearful of missing out. 402 00:25:58,920 --> 00:26:02,119 Speaker 1: And it's that kind into fomo that may be driving 403 00:26:02,640 --> 00:26:08,520 Speaker 1: a fair amount of uh this UH market strength. You know, 404 00:26:08,560 --> 00:26:12,159 Speaker 1: if you think about almost all financial error, David. It 405 00:26:12,560 --> 00:26:16,280 Speaker 1: comes from people doing today what they wish they had 406 00:26:16,280 --> 00:26:22,080 Speaker 1: done yesterday. And everybody who was too scared to buy 407 00:26:22,240 --> 00:26:25,720 Speaker 1: at the end of March regrets it. And there are 408 00:26:25,760 --> 00:26:28,480 Speaker 1: a lot of people who think they're rectifying that error 409 00:26:28,520 --> 00:26:31,800 Speaker 1: by buying now, and maybe they'll turn out to be right. 410 00:26:32,480 --> 00:26:36,760 Speaker 1: But I'm not sure that's something, uh that we can 411 00:26:37,080 --> 00:26:41,960 Speaker 1: entirely uh count on. I think we've got a long 412 00:26:42,160 --> 00:26:46,680 Speaker 1: way to go with respect COVID, and an even longer 413 00:26:46,760 --> 00:26:52,800 Speaker 1: way to go with respect to having a unified and 414 00:26:52,920 --> 00:27:00,200 Speaker 1: in a profound sense, uh functional society living to its potential. So, Larry, 415 00:27:00,200 --> 00:27:01,920 Speaker 1: if we want to talk about people being right and wrong, 416 00:27:02,040 --> 00:27:03,840 Speaker 1: to take a look at the people who were estimating 417 00:27:03,880 --> 00:27:06,800 Speaker 1: the jobs numbers this week. They were wildly wrong by 418 00:27:06,840 --> 00:27:09,120 Speaker 1: ten million jobs, and they thought they were gonna lose 419 00:27:09,160 --> 00:27:11,280 Speaker 1: seven point five million in the United States. We actually 420 00:27:11,280 --> 00:27:13,560 Speaker 1: gained two point five Man, what do you make of that? 421 00:27:13,640 --> 00:27:15,480 Speaker 1: How could that have happened? What does that tell us 422 00:27:15,600 --> 00:27:19,560 Speaker 1: about where we're headed? Look, it should give us, all 423 00:27:19,600 --> 00:27:25,400 Speaker 1: of us who were involved in economic forecasting, a very 424 00:27:25,440 --> 00:27:32,480 Speaker 1: great sense of uh humility, And obviously it's a welcome 425 00:27:32,560 --> 00:27:38,400 Speaker 1: development for ten million American families and for America more generally. 426 00:27:39,160 --> 00:27:43,119 Speaker 1: But I think it would be a mistake two over interpret. 427 00:27:44,160 --> 00:27:49,119 Speaker 1: We knew that the whole country was locked down in 428 00:27:49,880 --> 00:27:54,159 Speaker 1: mid April, late April, or even early May in a 429 00:27:54,200 --> 00:27:57,919 Speaker 1: way that was not going to be sustained, and so 430 00:27:58,119 --> 00:28:02,320 Speaker 1: we knew that there was going to be a bounce back. 431 00:28:03,200 --> 00:28:09,280 Speaker 1: We knew that um businesses that employ millions of people 432 00:28:09,840 --> 00:28:15,680 Speaker 1: had received grants basically, but in order for those grants 433 00:28:15,720 --> 00:28:19,520 Speaker 1: to be grants without an obligation to pay back, they 434 00:28:19,560 --> 00:28:24,920 Speaker 1: had to rehire a large number of employees. So when 435 00:28:24,960 --> 00:28:29,600 Speaker 1: I thought about these numbers, as I did through the day, 436 00:28:30,359 --> 00:28:35,560 Speaker 1: I asked myself how much of this changed my view 437 00:28:35,680 --> 00:28:38,560 Speaker 1: about where the economy would be at the end of 438 00:28:38,560 --> 00:28:44,200 Speaker 1: the year, and how much of this what represented an 439 00:28:44,440 --> 00:28:51,880 Speaker 1: earlier bounced back from the floor then most people had expected. 440 00:28:52,680 --> 00:28:57,160 Speaker 1: And I think it's more earlier bounds than it is 441 00:28:57,880 --> 00:29:05,440 Speaker 1: stronger and bigger bounce. So it's certainly good news. But 442 00:29:05,600 --> 00:29:08,760 Speaker 1: when the President starts talking about how it's gonna be 443 00:29:08,840 --> 00:29:10,960 Speaker 1: faster than a v and the economy is going to 444 00:29:11,040 --> 00:29:15,680 Speaker 1: be a rocket ship and all of that, maybe no one. 445 00:29:15,960 --> 00:29:22,320 Speaker 1: No one can know h for sure, but the fundamental 446 00:29:22,440 --> 00:29:27,600 Speaker 1: constraints on the economy. Uh, some sectors aren't going to 447 00:29:27,640 --> 00:29:30,840 Speaker 1: be able to come back as long as COVID is pervasive. 448 00:29:31,520 --> 00:29:36,040 Speaker 1: There's a risk of a second wave of COVID. There's 449 00:29:36,560 --> 00:29:43,280 Speaker 1: substantial financial overexposure and leverage, and especially in the real 450 00:29:43,400 --> 00:29:47,680 Speaker 1: estate sector where tenants aren't paying and landlords aren't positions 451 00:29:47,720 --> 00:29:52,040 Speaker 1: to pay mortgages, and that's putting strain on the financial system. 452 00:29:52,080 --> 00:29:57,320 Speaker 1: Those problems aren't resolved, and they're not really closer to 453 00:29:57,440 --> 00:30:02,000 Speaker 1: being resolved because we've got a good employment report. So yes, 454 00:30:02,840 --> 00:30:07,680 Speaker 1: faster bounce, but I'm not sure the ultimate uh place 455 00:30:07,800 --> 00:30:12,640 Speaker 1: we get is going to be very different. Finally, Larry, 456 00:30:12,840 --> 00:30:14,640 Speaker 1: we need to spend one minute here at the end 457 00:30:14,680 --> 00:30:17,440 Speaker 1: to connect those two points out. Which is the striking 458 00:30:17,440 --> 00:30:20,120 Speaker 1: thing to me of these numbers was the unemployment for 459 00:30:20,240 --> 00:30:23,520 Speaker 1: black Americans did actually went up as it went down 460 00:30:23,560 --> 00:30:28,440 Speaker 1: for both whites and Hispanics. What causes that? It's the 461 00:30:28,520 --> 00:30:34,760 Speaker 1: old adage, David, I suspect, uh, last hired, first fired, 462 00:30:35,480 --> 00:30:39,280 Speaker 1: and in this case it's first fired, last hired, And 463 00:30:40,080 --> 00:30:44,440 Speaker 1: that's what we're and uh, that's what we're seeing. I 464 00:30:44,480 --> 00:30:47,480 Speaker 1: don't know whether we can reach a firm interpretation on 465 00:30:47,520 --> 00:30:54,160 Speaker 1: the basis of one month's numbers. But God knows, UM, 466 00:30:54,320 --> 00:30:59,520 Speaker 1: it's not right, um that African Americans are doing as 467 00:30:59,640 --> 00:31:04,160 Speaker 1: much delivering as they're doing and as little being delivered 468 00:31:04,200 --> 00:31:10,280 Speaker 1: too as is taking place. And that's got something to 469 00:31:10,320 --> 00:31:16,680 Speaker 1: do with uh, the patterns uh that we are that 470 00:31:16,720 --> 00:31:20,320 Speaker 1: we are, that we are seeing, and we're gonna need 471 00:31:20,360 --> 00:31:23,520 Speaker 1: to do something about that. And we're gonna need to 472 00:31:23,600 --> 00:31:28,520 Speaker 1: address uh, these questions of inclusion if we're going to 473 00:31:28,640 --> 00:31:33,440 Speaker 1: have a kind of economy that we all want. Yeah, 474 00:31:33,520 --> 00:31:35,200 Speaker 1: and all the weeks for that to happen, this was 475 00:31:35,280 --> 00:31:37,880 Speaker 1: not the one to have it happen. But so true, Larry, 476 00:31:37,880 --> 00:31:39,640 Speaker 1: they are larger issues here that we're gonna have to 477 00:31:39,640 --> 00:31:42,360 Speaker 1: come back and address again and again. Many thanks to 478 00:31:42,360 --> 00:31:47,040 Speaker 1: our special contresor Larry Summers Harbored, former Secretary of the Treasury. 479 00:31:47,240 --> 00:31:49,600 Speaker 1: This has been another edition of Wall Street Week. See 480 00:31:49,680 --> 00:31:51,920 Speaker 1: you next week.