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Speaker 1: Bloomberg Audio Studios. Podcasts.

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Speaker 2: Radio. News.

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Speaker 3: Bloomberg Money.

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Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keen with

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Speaker 2: Scarlett Fu. Join us each week for a smart look

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Speaker 2: at the forces shaping your financial life on personal finance,

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Speaker 2: on retirement, and wealth management. We will explore how people

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Speaker 2: are earning, investing, and building wealth. We are live Fridays

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Speaker 2: at noon Eastern on Bloomberg Television. Subscribe to the podcast

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Speaker 2: wherever you listen, and as always on the Bloomberg Terminal

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Speaker 2: and the Bloomberg Business app.

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Speaker 3: Good afternoon, everyone. Bloomberg Money. It's on personal finance. It's

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Speaker 3: on retirement. Wealth management.

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Speaker 2: We're going to talk about that today after those bank

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Speaker 2: earnings this week.

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Speaker 3: Tom Keynes, Scarlett Fu. Good afternoon.

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Speaker 2: I mean, my head is swirling here and I just

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Speaker 2: as a grounding center gloom, fear that Apple is still,

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Speaker 2: as we go to air here, a $ 5 trillion company.

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Speaker 1: Well, thanks to the foldable phone. If you want to

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Speaker 1: order that.

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Speaker 2: Are you getting one?

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Speaker 1: No, I'm not. I'm going to wait. I'm not a

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Speaker 1: first adopter.

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Speaker 3: We stop right now.

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Speaker 2: We halt the show because the first person I know

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Speaker 2: that will get the foldable iPhone is Sri Natarajan.

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Speaker 3: Come on, Sri. Are you going to get the foldable iPhone?

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Speaker 4: If it was a flip phone, yes. Not the foldable.

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Speaker 3: There we go. Okay. Well, there we're done.

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Speaker 2: Sri will join us here on Wealth Management here in

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Speaker 2: a moment.

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Speaker 3: It's a wonderful show.

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Speaker 2: Scarlett's going to tell you the important part of the

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Speaker 2: show on real estate. Thomas Porcelli will join us. He's

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Speaker 2: chief economist at Wells Fargo. He is the number one

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Speaker 2: guy I know on wage growth or lack thereof. Tom

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Speaker 2: Porcelli will tell us about the state of the American worker.

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Speaker 1: And in the age of 7.5% mortgages, we take aim

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Speaker 1: at the challenges of home purchases. With a one-two punch,

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Speaker 1: we've got Jonathan Miller, who co-founded his own appraisal and

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Speaker 1: valuation firm, and Bess Friedman, CEO of Brown Harris Stevens.

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Speaker 3: Do you think they're on speaking terms?

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Speaker 1: I hope so.

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Speaker 2: I hope so.

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Speaker 3: We'll have to see.

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Speaker 2: A wonderful Bloomberg set of conversations after a busy week.

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Speaker 2: Sreenad Rajan, wonderful to have him for the first time

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Speaker 2: on the show. Yes, the banks, the big banks, but

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Speaker 2: we're going to talk wealth management today. Stacey Vanek-Smith will

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Speaker 2: join us. She's done the math on your next Social

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Speaker 2: Security check, or will you get one out there? I

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Speaker 2: guess Jack Lew says like 2032. Well, for people.

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Speaker 1: Yeah, who are going to get Social Security after 2032,

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Speaker 1: that's the big question. But if you get it now,

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Speaker 1: you're good.

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Speaker 2: I want to give you a vignette into how Bloomberg works.

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Speaker 2: We're going to air. The control room is all steeled up.

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Speaker 2: And we're talking flag football between the Chargers and the Eagles.

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Speaker 3: That's right.

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Speaker 5: Prospect Park this weekend. It's been rained out weekend after weekend.

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Speaker 3: Do you have orange slices?

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Speaker 5: There'll be orange slices.

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Speaker 3: There'll be orange slices. Gatorade, cooler of Gatorade. We'll be ready.

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Speaker 3: Let's jump into it right now, Sri.

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Speaker 2: I want to focus on what Bloomberg Money does, which

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Speaker 2: is wealth management. It's usually underplayed when the earnings come out.

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Speaker 2: It's a boom economy, isn't it?

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Speaker 6: Yes, but right now you've got me feeling nostalgic about

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Speaker 6: my old Motorola flip phone, Tom, I have to say.

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Speaker 2: John Tucker's still using that one. That's a different story.

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Speaker 2: Tell me about wealth management. Tell me about Morgan Stanley

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Speaker 2: leading the way.

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Speaker 6: That's the big story for me through this quarter. You know,

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Speaker 6: you look at the numbers. If you go back to

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Speaker 6: the summer, you talk about the SpaceX IPO back in June.

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Speaker 6: And we talked about the $ 500 million in fees for

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Speaker 6: the banks that were leading that IPO offering.

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Speaker 4: But that was just the start.

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Speaker 6: This quarter, Morgan Stanley reported $ 232 billion in net new assets.

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Speaker 6: What was the analyst's estimate? $ 111 billion. More than double

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Speaker 6: what analysts had been expecting. And that was largely driven

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Speaker 6: from flows coming from these IPOs. As people were getting

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Speaker 6: this public stock, that got deposited into current. That's a

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Speaker 6: big deal for a firm like Morgan Stanley.

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Speaker 2: Is wealth management in the future out five years, out

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Speaker 2: 10 years? Is it like the money machine? Is it

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Speaker 2: a profit machine? Or is it narrow margins like, say,

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Speaker 2: ETF fees?

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Speaker 4: At Morgan Stanley, the pre-tax margin is 30%.

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Speaker 6: 3-0.

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Speaker 1: 3-0.

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Speaker 4: On wealth management.

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Speaker 3: On wealth management.

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Speaker 4: We're in the wrong business.

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Speaker 1: And it's steady revenue, too. That's the other thing.

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Speaker 4: Steady Revenue, you don't have to think about the future.

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Speaker 4: It is, we're already there.

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Speaker 6: If you think about the transformation of Morgan Stanley, what

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Speaker 6: has happened to that bank since the depths of the

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Speaker 6: financial crisis in 2008, how James Gorman transformed it and

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Speaker 6: how TETPIC is carrying it forward, wealth management is certainly

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Speaker 6: a big piece of that bank. And it's an integrated

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Speaker 6: operation that works very closely with the success of its

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Speaker 6: investment bank.

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Speaker 2: All right.

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Speaker 1: So that's one side of the economy and what people

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Speaker 1: are seeing. This week, we also got indication that inflation

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Speaker 1: continues to run pretty hot, meaning it's rising faster than expected, Stacey.

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Speaker 1: And I know you've been looking at different angles of this.

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Speaker 7: Yes.

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Speaker 8: So obviously, we've got inflation numbers, inflation up 3.7 percent

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Speaker 8: across the economy. But in a lot of places, much higher.

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Speaker 8: Gas prices up 34 percent over last year. Now, Social

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Speaker 8: Security payments did get a bump. So starting on December 31st,

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Speaker 8: payments will be up by about 3.6 percent. So almost

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Speaker 8: keeping up with inflation, but.

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Speaker 1: Just not quite.

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Speaker 8: That'll be an average of $ 75 per month. So people

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Speaker 8: are going to be getting a little extra money if

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Speaker 8: they're on Social Security, but not keeping up with the expenses.

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Speaker 2: He brilliantly shows the two Americas. He's talking fancy people

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Speaker 2: buying 6,000 square feet on Fifth Avenue. We'll do that

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Speaker 2: in the back half of the show. And Stacey's talking

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Speaker 2: about people waiting for the check because that's all they got.

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Speaker 1: And the Beige Book, which is the Fed's regional assessment

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Speaker 1: of how things are going, indicates that businesses report consumers

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Speaker 1: also holding back, too.

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Speaker 8: Yeah, that was really interesting. I like the Beige Book.

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Speaker 8: It's a lot of stories from different business owners.

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Speaker 1: We like stories.

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Speaker 4: It's a great, I love the Beige Book.

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Speaker 8: But there were just a lot of shop owners reporting

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Speaker 8: that people, they had the same number of customers, but

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Speaker 8: people were buying less. They were cutting back. They were

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Speaker 8: flinching at prices. And so far, the American consumers held

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Speaker 8: out so admirably. But if that starts to crack, that

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Speaker 8: could really be trouble.

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Speaker 1: And of course, that all plays into how people feel

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Speaker 1: as we head closer to the midterm elections, David. There's

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Speaker 1: a lot of, I don't want to call it interference,

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Speaker 1: but it feels like it's a normal thing now, of

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Speaker 1: Russia using bots to push these fake election videos to

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Speaker 1: get people all angry.

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Speaker 2: I know.

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Speaker 3: Well, it was expected.

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Speaker 5: Stephanie Baker, our colleague in London, has done amazing reporting

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Speaker 5: here looking at what is being pushed out by these

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Speaker 5: Russian bot farms. And what we're seeing this time around

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Speaker 5: are videos that look like they're legitimate from an American

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Speaker 5: news agency, but using AI.

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Speaker 3: Are saying really outlandish and off-the-wall things.

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Speaker 5: And on top of that, we're seeing these bot firms

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Speaker 5: kind of pushing them out so that it seems like

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Speaker 5: they're getting a lot of views as well. Look, we've

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Speaker 5: heard many members of the intelligence community in this administration

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Speaker 5: and from before warning that this might happen. And I

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Speaker 5: think as we get to two weeks out from these midterms,

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Speaker 5: the fear is what influence, what is this going to

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Speaker 5: do to the election?

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Speaker 3: Where do we see those bots? Where do I see those?

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Speaker 5: On Instagram, on TikTok, I mean, they're cropping up in

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Speaker 5: the same places, Twitter as well, and so you have,

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Speaker 5: there's a lot of happy talk from Twitter's current leadership,

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Speaker 5: they're trying to cull it, but it's a very difficult

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Speaker 5: thing to fight.

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Speaker 2: Do the Democrats have an Elon Musk?

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Speaker 5: No, not in the same way, but you look at

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Speaker 5: the money that we've seen Elon Musk spending here, it

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Speaker 5: dwarfs what George Soros, for instance, other big Democratic donors

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Speaker 5: have spent. So we're seeing it go in one direction.

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Speaker 5: That is more and more money in each of these

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Speaker 5: election cycles. Elon Musk far and away the biggest donor here. Yes,

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Speaker 5: there are Democratic donors who spend a lot of money,

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Speaker 5: but they are outmatched, broadly speaking. when you compare Democrats

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Speaker 5: to Republicans, Democrats are still very much lagging Republicans.

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Speaker 1: The bots spread all kinds of speculation and rumors about

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Speaker 1: where James Tallarico had been prior to showing up.

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Speaker 5: Yes, he made five payments to OnlyFans that he had been... Anyway,

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Speaker 5: all of this stuff is, to somebody who follows the

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Speaker 5: news closely, patently false. But again, this kind of veneer,

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Speaker 5: this patina of legitimacy makes it seem like, indeed, maybe

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Speaker 5: this is a report from ABC News.

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Speaker 2: What's your biggest mystery to Election Day right now? Is

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Speaker 2: it Senate, House, governors?

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Speaker 3: Is it In the game that you live, what's the

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Speaker 3: biggest mystery?

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Speaker 5: I think it's the Senate, because you detect the enthusiasm

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Speaker 5: among many Democrats that there is a possibility that it

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Speaker 5: could change in terms of leadership. Obviously, that's going to

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Speaker 5: be a harder hill for Democrats to climb here, but

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Speaker 5: that's the mystery. The House seems like a foregone conclusion

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Speaker 5: because of how few seats Democrats need to win. It

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Speaker 5: would be a sea change were they to get control

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Speaker 5: of the Senate as well.

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Speaker 2: A sea change here coming out of COVID, and this

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Speaker 2: is to the leadership of Sreenath Rajan. with Bloomberg News,

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Speaker 2: the profitability of the banks as a whole, do we

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Speaker 2: understand just how.

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Speaker 3: Big they are?

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Speaker 6: I'm not quite sure we do because I just ran

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Speaker 6: the numbers in the last 10 years. 10 years ago,

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Speaker 6: the big six US banks combined profitability was $ 86 billion.

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Speaker 4: At the end of 2026, we're going to.

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Speaker 6: Get within kissing distance of $ 200 billion. That has been

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Speaker 6: massive growth. They have been able to expand their margins.

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Speaker 6: Revenue growth has been there. And at the end of

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Speaker 6: the day, the banks are not really the drivers of

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Speaker 6: anything on their own. They are a proxy for consumer health.

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Speaker 6: They're a proxy for corporate health. And they're a proxy

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Speaker 6: for market activity. And all those three fronts have been

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Speaker 6: going great for the banks.

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Speaker 2: In the grind that you do, where will we be

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Speaker 2: in five years between the traditional asset gatherers, Schwab, Fidelity,

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Speaker 2: and Vanguard, the rest of them, and those big banks?

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Speaker 2: Where do you see that mix in five years?

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Speaker 6: Have to wonder and you have to assume that there's

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Speaker 6: going to be a shift because as we were coming

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Speaker 6: out of 2020, that was the grand period of envy

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Speaker 6: when you talked to bankers and you talked about what

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Speaker 6: they were looking at and they were looking at that

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Speaker 6: golden era for private market firms, the private investment giants.

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Speaker 4: Now we've moved back to the Wall Street circle.

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Speaker 2: We've got to stop the show here. I feel like

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Speaker 2: I'm dealing with Francine Lacroix. Guri shows up with an

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Speaker 2: espresso at 12 noon.

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Speaker 3: Give us a close-up. It's just too much. It's very London.

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Speaker 9: I don't know.

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Speaker 5: I've had a latte already.

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Speaker 4: I have too much milk. You've been up early.

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Speaker 3: I've been up early.

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Speaker 5: I've got to be ready for this show.

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Speaker 3: I'm on my third Sanka.

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Speaker 1: I just got amped up by watching the Tesla Roadster

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Speaker 1: do aerial flips.

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Speaker 4: That was my thing.

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Speaker 3: When cars fly.

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Speaker 6: What are you going to do with a car that

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Speaker 6: does a backflip?

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Speaker 1: Well, don't worry. We're not going to have access to it.

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Speaker 1: It's only in that very contained environment. You can drive

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Speaker 1: behind a car that does a backflip.

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Speaker 2: There you go.

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Speaker 1: All right. Thank you to everyone joining us today. We

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Speaker 1: want to thank our chief Wall Street correspondent, Srinath Rajan,

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Speaker 1: Stacey Vanek-Smith, host of the Everybody's Business podcast, and, of course,

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Speaker 1: David Gurra, co-host of Bloomberg This Weekend. Coming up on

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Speaker 1: Bloomberg Money, Tom Porcelli, chief economist at Wells Fargo. We're

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Speaker 1: going to talk wages and how consumers are navigating rising prices.

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Speaker 1: This is Bloomberg Money.

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Speaker 2: You're listening to Bloomberg Money. Stay with us with more

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Speaker 2: to come after this. Bloomberg Money, good afternoon to you

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Speaker 2: on Wealth Manager Retirement and on the wages to come.

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Speaker 2: We're going to dive into it here in a moment.

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Speaker 2: What was your observation this week among the different shows

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Speaker 2: you do, the ETF show and such?

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Speaker 3: I mean, it's a nuts week.

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Speaker 1: It was a nuts week. The chip sell-off has gathered

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Speaker 1: steam and it's a tough week for anyone who's long tech,

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Speaker 1: which is basically.

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Speaker 2: All of us.

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Speaker 3: I was thunderstruck.

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Speaker 2: CoreWeave is 550 employees. The way we're talking about it,

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Speaker 2: I would have thought it was 20,000 employees.

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Speaker 1: And one analyst says the stock could go to zero.

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Speaker 2: Well, we'll have to see on that. The raging debate

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Speaker 2: out there. Ed Ludlow with leadership at Bloomberg Technology.

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Speaker 3: This is a joy.

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Speaker 2: There's a moment where economists become famous. And for Tom

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Speaker 2: Purcell years ago, it was sterling analysis of your paycheck.

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Speaker 2: and it adjusted for inflation. He's chief economist at Wells Fargo.

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Speaker 2: How bad is the real wage right now? I'm going

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Speaker 2: to put the chart up in a minute, but just

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Speaker 2: give us the update. Are we making any money here

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Speaker 2: after inflation? Well, first of all, thank you for that

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Speaker 2: lovely introduction.

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Speaker 10: Very appreciated. And I love the format of the show.

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Speaker 10: I think it's fantastic. So good luck with it. I

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Speaker 10: think it looks like you.

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Speaker 3: Got- It's okay. We're not on speaking terms, but move on.

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Speaker 10: Yeah, look, I think that the consumer right now, from

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Speaker 10: a real wage perspective, it's obviously looking pretty rough for

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Speaker 10: them at this juncture. And so whether you look at ECI,

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Speaker 10: which I think you're going to pull up a chart

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Speaker 10: of that, or you look at just something even more

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Speaker 10: simple like, I don't know, real average hourly earnings, it

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Speaker 10: doesn't really matter.

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Speaker 1: We're behind inflation.

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Speaker 10: I mean, the consumer is really struggling from a real

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Speaker 10: earnings perspective. And the truth is, and we should talk

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Speaker 10: about this more. But the truth is, I don't really

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Speaker 10: see that going away imminently.

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Speaker 2: Let me bring up the chart here. This is back

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Speaker 2: to 2001, so it's a quarter of a century chart.

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Speaker 2: And this is Porcelli. This is the ECI index, which

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Speaker 2: is wages and benefits. It's a little bit fancier paycheck

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Speaker 2: than hourly wages. And what's so important there, folks, is

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Speaker 2: the good news before COVID. We had a positive real wage,

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Speaker 2: and then COVID and the noise and all that.

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Speaker 3: And then there was a nice rebound.

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Speaker 2: And then, Tom, you're saying this negative raise, the red circle,

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Speaker 2: could continue.

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Speaker 10: Yeah, and so what everyone should know is what they're

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Speaker 10: looking at there in that chart, that's ECI, which includes everything, right?

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Speaker 10: It's not just wages. It's also benefits. If you just

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Speaker 10: did the wages part... of ECI, it looks meaningfully worse.

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Speaker 10: In fact, it's in negative territory. So again, I think

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Speaker 10: that's a really important caveat to what people see, because

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Speaker 10: what I would tell you is that it's actually worse

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Speaker 10: than that chart.

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Speaker 1: How well does anyone understand how much inflation, higher prices

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Speaker 1: influence behavior like consumer spending? For instance, my 15-year-old dishwasher

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Speaker 1: now leaks water when it's running a cycle. So I

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Speaker 1: can either pay a plumber, like what, $ 300 to diagnose

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Speaker 1: and repair, or spend at least $ 800 to buy a

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Speaker 1: new one. It makes more sense for me to buy

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Speaker 1: a new one before prices go up even higher, but

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Speaker 1: I may just end up not doing anything and trying

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Speaker 1: to get a used one off Facebook Marketplace.

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Speaker 10: I think this is a really important idea. because as

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Speaker 10: much as I can tell you that real wages are

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Speaker 10: really sort of struggling here, the reality is there's still

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Speaker 10: a wealth effect in place, right? The reality is people

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Speaker 10: still look at their 401k statements when they come in

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Speaker 10: or their investment accounts when they come in, and they

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Speaker 10: see that they're looking pretty positive. And that wealth effect,

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Speaker 10: I think, is really emboldening people to basically feel comfortable

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Speaker 10: dipping into saving to the extent that they are. And that,

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Speaker 10: to me, is, I think, again, a really important part

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Speaker 10: of the story because You know, if the one side

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Speaker 10: of your balance sheet is looking pretty good, right, whether

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Speaker 10: you're sitting on a house, whether you're sitting on a

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Speaker 10: 401k or, again, any investment account, the truth is, for

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Speaker 10: most people, that's what's encouraging them to continue to go

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Speaker 10: out and spend. And that's why we actually, it's funny,

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Speaker 10: when we think about, like, our consumption forecast, I can

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Speaker 10: tell you that beneath the surface, the consumer is looking, again,

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Speaker 10: a little roughed up. But it doesn't change our consumption

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Speaker 10: forecast because consumers are still feeling pretty good on Wealth Effect.

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Speaker 2: I look here, Tom, and this is the heritage of

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Speaker 2: Wells Fargo economics, Jay Bryson and John Sylvia from decades ago,

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Speaker 2: brilliant analysis of how Americans used to move around. We

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Speaker 2: used to look over the horizon, the cliche, go west,

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Speaker 2: or at least go down to Key West. But I look, Tom,

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Speaker 2: where we are, and the research I've seen for years

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Speaker 2: at Wells Fargo We've become a more static America.

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Speaker 3: We're not moving, right? Absolutely right.

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Speaker 10: And, you know, you can see that in a, I mean,

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Speaker 10: if you wanted to sort of zoom out and look

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Speaker 10: at it in a more aggregate sense, you know, you

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Speaker 10: could look at something like the quit rate. I mean,

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Speaker 10: the quit rate is one, nine, two percent. I mean,

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Speaker 10: you have to go back to 2015 to see a

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Speaker 10: lower quit rate. And what's interesting about 2015, I mean,

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Speaker 10: I know that just sounds like a random number. It's

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Speaker 10: not that random. I mean, think about what was happening

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Speaker 10: in 2015. I mean, that was the jobless recovery. And

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Speaker 10: so we're back to there. So it's not like people

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Speaker 10: feel very comfortable.

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Speaker 1: When the labor market's doing fairly well, in fact.

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Speaker 10: Yeah, well, I think that that's part of the point, right? Like,

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Speaker 10: I don't know how... I don't know if the labor

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Speaker 10: market is doing nearly as well as, you know, something by,

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Speaker 10: if you're just simply looking at the unemployment rate, I

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Speaker 10: don't think that's the right way of really capturing sort

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Speaker 10: of the underlying essence of what's happening in the labor market.

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Speaker 3: I think, you know, you have to.

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Speaker 10: Look at sort of the degree of confidence towards labor.

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Speaker 10: And you can see that there's not a ton of confidence,

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Speaker 10: and that shows up in the quit rate or something

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Speaker 10: like the labor differential. And that is, I think, really

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Speaker 10: acting as a.

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Speaker 2: Sort of a ceiling.

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Speaker 1: How much does the data reflect the reality of how

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Speaker 1: people work now, which is some people have a full-time

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Speaker 1: job where they get a W-2, but other people are

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Speaker 1: putting together lots of gigs and hustling their way to

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Speaker 1: some kind of paycheck?

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Speaker 3: Yeah, for sure.

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Speaker 10: I mean, look, that is a huge part of the

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Speaker 10: labor backdrop today. I mean, that's an inescapable truth. And look,

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Speaker 10: at the end of the day, the unemployment rate is

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Speaker 10: still relatively low, right? I mean, it's between 4% and 4.5%,

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Speaker 10: which has been the case now for you know, the

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Speaker 10: last year or so. So labor is generally okay. I

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Speaker 10: just don't think it's as nearly as good as a

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Speaker 10: lot of people would think if you're just looking at

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Speaker 10: the unemployment rate.

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Speaker 2: I want to get you back here, but Tom, I

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Speaker 2: want to talk about retirement. The struggle in America, we've

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Speaker 2: got this huge number of halves. Bess Friedman's going to

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Speaker 2: be on from Brown hair Stevens. Thanks, Luigi, for that.

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Speaker 2: By Friday, my brain is just gone.

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Speaker 1: I know. I hear you.

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Speaker 3: Do you understand?

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Speaker 1: You can bond.

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Speaker 3: With me on this. Absolutely. I'm glad you like that, Susan.

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Speaker 2: I look, Tom, where we are, and we've got to

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Speaker 2: get to retirement. Yes. Peter Orszag sitting in this chair

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Speaker 2: last week. A huge body of America can't get to retirement,

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Speaker 2: can they?

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Speaker 10: Yeah, look, I think that that is going to be

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Speaker 10: the persistent challenge for, I think, for quite a number

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Speaker 10: of folks. You know, the reality is, and we just

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Speaker 10: did this work actually in a note, which hopefully you're

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Speaker 10: both getting that.

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Speaker 1: We'll get on the mailing list.

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Speaker 3: Please just let me know. I don't open my emails.

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Speaker 1: Continue.

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Speaker 2: I'll get you added.

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Speaker 10: And what we showed is that more and more people

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Speaker 10: are actually relying on investment income more so than wage income.

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Speaker 10: There's this transition that's happening right now. And what that

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Speaker 10: means is that you're more at the mercy of what

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Speaker 10: happens from a market perspective. That's an interesting thing, particularly

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Speaker 10: as you think about retirement.

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Speaker 1: Especially as a record 58% of all U.S. households are

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Speaker 1: now exposed to the stock market as opposed to before.

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Speaker 3: Yes, that's exactly right.

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Speaker 1: Tom, I know you spend a lot of your time

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Speaker 1: thinking about and writing about employment, inflation. What would surprise

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Speaker 1: other people about how you approach managing your own finances?

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Speaker 10: Oh gosh, I think that they would probably be surprised

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Speaker 10: to learn that I'm incredibly hands off. I sort of

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Speaker 10: set it and leave it. I really don't touch it

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Speaker 10: all that much.

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Speaker 1: Do you rip open your statements when they come in?

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Speaker 2: I don't.

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Speaker 10: I don't know what that says about me exactly, but no,

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Speaker 10: I'm very comfortable knowing that my time horizon is sufficient

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Speaker 10: where I'm not all that bothered by market swings. If

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Speaker 10: my macro view really lines up with, hey, by the way,

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Speaker 10: we're about to go into a very rough branch, I'll

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Speaker 10: make some adjustments. But otherwise, I'm just sort of, you know,

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Speaker 10: set it and let it go.

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Speaker 3: Our listeners and viewers are.

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Speaker 2: Opening their monthly statements and they're seeing price down and

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Speaker 2: fixed income. Is that something we need to get used to?

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Speaker 3: Yeah.

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Speaker 10: You know, we've been talking about this for quite some

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Speaker 10: time now. I think the rise in yields is real.

442
00:18:51,359 --> 00:18:55,420
Speaker 10: I think there's a new floor underneath yields. And I

443
00:18:55,460 --> 00:18:56,899
Speaker 10: think what people have to keep in mind, because it's

444
00:18:56,960 --> 00:18:58,720
Speaker 10: very easy, and this is especially true for, I think,

445
00:18:58,740 --> 00:18:59,520
Speaker 10: a lot of equity.

446
00:18:59,300 --> 00:19:00,380
Speaker 2: Investors, I think, sometimes.

447
00:19:00,800 --> 00:19:02,600
Speaker 10: I'm really worried about this, I think, more than most.

448
00:19:03,220 --> 00:19:05,480
Speaker 10: What you have to keep in mind is yields rising

449
00:19:05,520 --> 00:19:07,640
Speaker 10: in and of itself is not a bad thing. It's

450
00:19:07,660 --> 00:19:09,869
Speaker 10: the reason, right? It's the reason that matters. And if

451
00:19:09,910 --> 00:19:12,670
Speaker 10: yields are rising for good reasons, then I think it's OK.

452
00:19:12,690 --> 00:19:14,430
Speaker 10: I think most of the rise has been for good reasons,

453
00:19:14,450 --> 00:19:15,570
Speaker 10: even though it's been a lot of quirks.

454
00:19:15,869 --> 00:19:18,830
Speaker 1: OK, then there's all the existential crisis kind of questions

455
00:19:18,869 --> 00:19:21,330
Speaker 1: about national debt. Tom, thank you so much. Tom Porcelli,

456
00:19:21,369 --> 00:19:24,560
Speaker 1: chief economist at Wells Fargo. More to come on Bloomberg

457
00:19:24,600 --> 00:19:26,899
Speaker 1: Money with Jonathan Miller and Bess Friedman.

458
00:19:29,630 --> 00:19:32,710
Speaker 2: You're listening to Bloomberg Money. Stay with us with more

459
00:19:32,730 --> 00:19:34,040
Speaker 2: to come after this.

460
00:19:42,100 --> 00:19:45,449
Speaker 3: Bloomberg Money. Good afternoon. Yes, the fish are real. They

461
00:19:45,490 --> 00:19:47,270
Speaker 3: were not fake. It's not AI.

462
00:19:47,290 --> 00:19:49,750
Speaker 2: CoreWeave didn't do that or something.

463
00:19:50,350 --> 00:19:51,430
Speaker 3: Or the rest of them as well.

464
00:19:51,450 --> 00:19:53,910
Speaker 2: Bloomberg Money here on a Friday after sort of like

465
00:19:53,950 --> 00:19:55,490
Speaker 2: a kind of like an exhausting week.

466
00:19:55,710 --> 00:19:58,130
Speaker 1: It has been. And for the tech stocks, it continues

467
00:19:58,170 --> 00:20:00,629
Speaker 1: to be. I'm looking at eight straight days of losses

468
00:20:00,690 --> 00:20:03,130
Speaker 1: for chip companies. Remember when they were the high flyers?

469
00:20:03,369 --> 00:20:04,350
Speaker 3: Yeah, like three weeks ago.

470
00:20:04,850 --> 00:20:05,630
Speaker 1: Not so long ago.

471
00:20:05,670 --> 00:20:08,300
Speaker 2: Fortunately, I'm a long term six week record here.

472
00:20:08,490 --> 00:20:08,669
Speaker 9: All right.

473
00:20:08,690 --> 00:20:11,439
Speaker 1: Bloomberg Money is your new destination for personal finance. It's

474
00:20:11,480 --> 00:20:15,200
Speaker 1: a cross-platform effort that extends beyond your television screen, including

475
00:20:15,220 --> 00:20:18,040
Speaker 1: our new digital hub at Bloomberg.com slash money. And Tom,

476
00:20:18,080 --> 00:20:21,320
Speaker 1: this week we had a story about how 7% mortgage

477
00:20:21,359 --> 00:20:23,379
Speaker 1: rates have hit the U.S. housing market. It's actually more

478
00:20:23,420 --> 00:20:26,330
Speaker 1: than 7% now. And those rates have sent pending home

479
00:20:26,369 --> 00:20:29,369
Speaker 1: sales tumbling to near 12-year lows. So it's having an

480
00:20:29,410 --> 00:20:32,750
Speaker 1: impact on the numbers. The housing market has really slowed down.

481
00:20:33,520 --> 00:20:34,420
Speaker 3: It's really slowed down.

482
00:20:34,460 --> 00:20:36,720
Speaker 2: But I wonder, after talking to Sreenad Rajan about it,

483
00:20:36,750 --> 00:20:39,889
Speaker 2: how it's slowed down in certain climes of.

484
00:20:39,869 --> 00:20:41,050
Speaker 3: Wall Street as well.

485
00:20:41,670 --> 00:20:44,950
Speaker 2: Eight Ways to Go with Jonathan Miller. He's co-founder of

486
00:20:44,990 --> 00:20:45,800
Speaker 2: Miller Samuel.

487
00:20:46,260 --> 00:20:48,660
Speaker 3: Far more than that, in this nation, he is the.

488
00:20:48,580 --> 00:20:53,580
Speaker 2: Definitive statistical voice on what's happening to your renting. what's

489
00:20:53,600 --> 00:20:56,090
Speaker 2: happening to your home ownership. I was going to start

490
00:20:56,109 --> 00:20:57,879
Speaker 2: with Seattle, but I got to rip up the script

491
00:20:57,940 --> 00:21:01,250
Speaker 2: after Sreenath Rajan was with us here. How do you

492
00:21:01,369 --> 00:21:04,590
Speaker 2: see in real estate the Wall Street boom that's out

493
00:21:04,630 --> 00:21:08,109
Speaker 2: there right now? Is it simplistically just the Hamptons? Is

494
00:21:08,170 --> 00:21:11,030
Speaker 2: it Bess Friedman coming up in a bit? Her Fifth Avenue?

495
00:21:11,410 --> 00:21:12,150
Speaker 2: Where does all that.

496
00:21:12,070 --> 00:21:14,290
Speaker 3: Wall Street money go in the Jonathan Miller world?

497
00:21:14,770 --> 00:21:17,350
Speaker 11: Well, it goes to the upper half or upper third

498
00:21:17,390 --> 00:21:20,609
Speaker 11: of the housing market. The lower you go in price,

499
00:21:20,650 --> 00:21:25,930
Speaker 11: the more dependent consumers are on mortgage rates. Equity drawdowns

500
00:21:26,040 --> 00:21:29,639
Speaker 11: are fueling a tremendous strength in the luxury market. New

501
00:21:29,660 --> 00:21:35,160
Speaker 11: York Metro the West Coast, certain markets, really is the story.

502
00:21:35,340 --> 00:21:40,280
Speaker 11: And I think we're overly obsessed with mortgage rates as

503
00:21:40,600 --> 00:21:43,440
Speaker 11: sort of the determinant of health of the housing market.

504
00:21:43,480 --> 00:21:47,080
Speaker 11: I think the biggest issue with mortgage rates is if

505
00:21:47,140 --> 00:21:50,100
Speaker 11: they stabilize, I think that there's a lot of people,

506
00:21:50,160 --> 00:21:55,899
Speaker 11: I call it, they're basically procrastinating to make a decision because.

507
00:21:57,300 --> 00:21:59,640
Speaker 11: Because they can't get their arms around the current rate

508
00:21:59,700 --> 00:22:04,770
Speaker 11: because five minutes later, it's going up or changing. Consumers

509
00:22:04,830 --> 00:22:07,170
Speaker 11: need time to sort of get comfortable, and there's been

510
00:22:07,690 --> 00:22:10,280
Speaker 11: sort of too much information flowing in.

511
00:22:10,310 --> 00:22:11,490
Speaker 3: What I love about your work.

512
00:22:11,350 --> 00:22:14,609
Speaker 2: Is you not only show San Francisco's mental up-up AI

513
00:22:14,670 --> 00:22:17,510
Speaker 2: and all that. I mean, the starter homes are like

514
00:22:17,550 --> 00:22:18,950
Speaker 2: half a million, a million dollars.

515
00:22:18,970 --> 00:22:19,670
Speaker 1: You can't get a starter home.

516
00:22:19,710 --> 00:22:21,040
Speaker 3: Yeah, there's no starter home. That's right.

517
00:22:21,060 --> 00:22:21,179
Speaker 7: Sorry.

518
00:22:21,420 --> 00:22:24,920
Speaker 2: But just north, Seattle's really struggling. Jonathan Miller and Miller

519
00:22:24,960 --> 00:22:29,040
Speaker 2: Samuel here on Seattle. Seattle is not San Francisco. There's

520
00:22:29,080 --> 00:22:33,950
Speaker 2: tech unemployment, uncertainty, there's layoffs, fewer job-driven relocations, and less

521
00:22:34,030 --> 00:22:37,730
Speaker 2: confidence among workers who still have jobs. And then you

522
00:22:37,770 --> 00:22:40,160
Speaker 2: list the name of the companies as well.

523
00:22:40,240 --> 00:22:43,320
Speaker 3: Are there a lot of Seattles out there? There are.

524
00:22:43,340 --> 00:22:46,980
Speaker 11: It's starting to, you're starting to break out and see that.

525
00:22:47,580 --> 00:22:51,239
Speaker 11: What's really interesting is that you can't sort of pigeonhole

526
00:22:52,200 --> 00:22:56,359
Speaker 11: a tech location as sort of with the AI boom

527
00:22:56,420 --> 00:23:00,619
Speaker 11: as being sort of safe. You look at San Francisco

528
00:23:01,550 --> 00:23:06,950
Speaker 11: was this dire downturn. The tech sector was really weak.

529
00:23:07,650 --> 00:23:10,810
Speaker 11: Housing prices were falling. Now we have the tech sector

530
00:23:10,830 --> 00:23:15,980
Speaker 11: in the switching to AI, but that's not happening in Seattle.

531
00:23:16,080 --> 00:23:19,479
Speaker 11: So it's very market dependent. Now we're seeing housing prices

532
00:23:19,540 --> 00:23:22,720
Speaker 11: in San Francisco up about 20% over the last year,

533
00:23:22,800 --> 00:23:24,300
Speaker 11: which is incredible.

534
00:23:24,340 --> 00:23:26,780
Speaker 1: San Francisco or San Francisco suburbs by Silicon Valley?

535
00:23:26,960 --> 00:23:27,280
Speaker 2: Both.

536
00:23:27,840 --> 00:23:31,410
Speaker 11: And what's really interesting is that Oakland across the Bay

537
00:23:31,470 --> 00:23:35,690
Speaker 11: Bridge is I see that as the Brooklyn of San

538
00:23:35,730 --> 00:23:41,320
Speaker 11: Francisco really saw declining housing prices for two or three years.

539
00:23:41,900 --> 00:23:43,080
Speaker 3: Now we're starting.

540
00:23:43,240 --> 00:23:46,650
Speaker 11: I think, seeing a San Francisco spillover where the jobs,

541
00:23:47,150 --> 00:23:50,270
Speaker 11: the suit for affordable housing is pushing prices up again.

542
00:23:50,430 --> 00:23:53,100
Speaker 1: So our understanding of all these different specific markets, a

543
00:23:53,140 --> 00:23:55,520
Speaker 1: lot of it comes from social media, from whatever people

544
00:23:55,580 --> 00:23:58,420
Speaker 1: who live there or who talk about places they're portrayed

545
00:23:58,480 --> 00:24:01,270
Speaker 1: in the narrative that they tell. How has social media,

546
00:24:01,290 --> 00:24:05,290
Speaker 1: the TikToks, Instagrams, YouTube shorts, changed the way people think

547
00:24:05,350 --> 00:24:07,450
Speaker 1: about how to transact in this housing market?

548
00:24:07,710 --> 00:24:11,620
Speaker 11: Well, I think social media, at least my feed, when

549
00:24:11,680 --> 00:24:14,800
Speaker 11: I look at the information coming at me, you get

550
00:24:14,840 --> 00:24:17,540
Speaker 11: the impression that every market in America is.

551
00:24:17,560 --> 00:24:18,620
Speaker 3: Flooded with supply.

552
00:24:18,640 --> 00:24:21,960
Speaker 11: And if you really look at it regionally, the Northeast,

553
00:24:22,080 --> 00:24:24,760
Speaker 11: the Midwest is devoid of supply.

554
00:24:25,100 --> 00:24:26,980
Speaker 3: You look at the Sunbelt, actually.

555
00:24:28,580 --> 00:24:31,680
Speaker 11: Has the most supply, but it's not as much as

556
00:24:32,660 --> 00:24:35,080
Speaker 11: that sort of has stopped, the inventory growth.

557
00:24:35,400 --> 00:24:38,080
Speaker 3: And the West is somewhere in between. So it's a

558
00:24:38,100 --> 00:24:39,139
Speaker 3: really mixed bag.

559
00:24:39,369 --> 00:24:42,170
Speaker 11: But inventory is the most important metric in housing right

560
00:24:42,230 --> 00:24:44,450
Speaker 11: now and has been coming out of the pandemic.

561
00:24:44,470 --> 00:24:46,310
Speaker 2: There seems to be, Jonathan Miller, in the arc of

562
00:24:46,350 --> 00:24:52,020
Speaker 2: your career, a society, cross-generation society, giving up on home ownership.

563
00:24:52,580 --> 00:24:56,020
Speaker 2: Are we becoming like Europe, where there's just a dominant

564
00:24:56,180 --> 00:24:58,639
Speaker 2: idea we're going to rent and never own?

565
00:25:00,210 --> 00:25:02,950
Speaker 11: I guess the short answer to that is absolutely not.

566
00:25:03,590 --> 00:25:06,690
Speaker 11: I don't think that. I think the problem is we're

567
00:25:06,760 --> 00:25:09,260
Speaker 11: in sort of a short-term environment where we have this

568
00:25:09,400 --> 00:25:14,240
Speaker 11: heavy burden caused by higher rates, which largely is an

569
00:25:14,320 --> 00:25:19,880
Speaker 11: economic unforced error. And I think, you know, this sort

570
00:25:19,920 --> 00:25:24,080
Speaker 11: of ends. The problem is the chaos. It's less about

571
00:25:24,119 --> 00:25:24,880
Speaker 11: the rate itself.

572
00:25:25,480 --> 00:25:25,980
Speaker 3: Rates are 7.5%.

573
00:25:25,980 --> 00:25:32,400
Speaker 11: Mm-hmm. That's not some crazy high number. It's just relative

574
00:25:32,460 --> 00:25:35,320
Speaker 11: to the pandemic where I believe the Fed kept rates

575
00:25:35,380 --> 00:25:36,290
Speaker 11: too low for too long.

576
00:25:36,609 --> 00:25:39,150
Speaker 1: Let's talk about the costs of housing ownership overall, because

577
00:25:39,230 --> 00:25:41,610
Speaker 1: it's not just high mortgage rates. It's not just high

578
00:25:41,990 --> 00:25:44,520
Speaker 1: prices for the homes overall. You also have high property

579
00:25:44,560 --> 00:25:47,020
Speaker 1: taxes and high insurance costs. And a lot of cities

580
00:25:47,359 --> 00:25:50,020
Speaker 1: and states are now looking into cutting property taxes because

581
00:25:50,040 --> 00:25:51,679
Speaker 1: they know that that's a pain point for a lot

582
00:25:51,700 --> 00:25:52,020
Speaker 1: of people.

583
00:25:52,040 --> 00:25:53,080
Speaker 3: Especially Florida.

584
00:25:53,180 --> 00:25:56,030
Speaker 1: Especially Florida. How does that all play out? Because something's

585
00:25:56,070 --> 00:25:57,850
Speaker 1: got to give, and services are going to go by

586
00:25:57,890 --> 00:25:59,770
Speaker 1: the wayside. You're not going to get your garbage picked up.

587
00:26:00,310 --> 00:26:02,930
Speaker 1: How do you get that idea across to people?

588
00:26:03,710 --> 00:26:07,620
Speaker 11: First of all, it's very weird to cut or remove

589
00:26:07,690 --> 00:26:11,540
Speaker 11: property taxes when they pay for police and fire and EMT,

590
00:26:12,020 --> 00:26:16,679
Speaker 11: maybe a little bit of school. That's all going to

591
00:26:16,700 --> 00:26:21,780
Speaker 11: be paid out of some other location. So maybe property

592
00:26:21,840 --> 00:26:26,189
Speaker 11: taxes go down, but essentially local governments lose control of

593
00:26:26,510 --> 00:26:29,910
Speaker 11: how the property taxes are spent and it becomes centralized where...

594
00:26:30,990 --> 00:26:34,050
Speaker 11: a municipality has to go to, say, Tallahassee in Florida

595
00:26:34,090 --> 00:26:36,210
Speaker 11: and sort of beg for their share of the pie

596
00:26:36,600 --> 00:26:38,440
Speaker 11: as opposed to a local government actually.

597
00:26:38,560 --> 00:26:41,560
Speaker 2: The mayor of Tallahassee or the mayor of New York City,

598
00:26:41,859 --> 00:26:45,410
Speaker 2: what's your number one advice to them? to fix, solve

599
00:26:45,450 --> 00:26:46,490
Speaker 2: this national headache?

600
00:26:47,450 --> 00:26:50,710
Speaker 11: Well, I think we're actually seeing some of that here

601
00:26:50,750 --> 00:26:53,950
Speaker 11: in New York. There's been a lot of fear-mongering about

602
00:26:54,580 --> 00:26:58,080
Speaker 11: New York and people fleeing the city, you know, taxes.

603
00:26:58,340 --> 00:26:59,600
Speaker 3: Are we? No.

604
00:26:59,800 --> 00:27:02,660
Speaker 11: We're actually not seeing it in the data at all.

605
00:27:02,780 --> 00:27:06,180
Speaker 11: We're not seeing people fleeing the city. And I guess,

606
00:27:06,720 --> 00:27:09,030
Speaker 11: you know, as my grandfather told me when I was

607
00:27:09,070 --> 00:27:12,229
Speaker 11: a kid growing up in D.C., if you're not working

608
00:27:12,310 --> 00:27:13,969
Speaker 11: in New York, then you're just camping out.

609
00:27:14,210 --> 00:27:17,210
Speaker 2: Scarlett, is this another reason that Jalen is God?

610
00:27:17,830 --> 00:27:18,530
Speaker 3: We're not leaving.

611
00:27:18,550 --> 00:27:20,950
Speaker 1: Jalen's God for so many reasons, we can't even begin

612
00:27:20,990 --> 00:27:26,060
Speaker 1: to list them. Let's talk a little bit about the Northeast,

613
00:27:26,100 --> 00:27:29,740
Speaker 1: because I think about extreme weather as well, and how

614
00:27:29,800 --> 00:27:33,379
Speaker 1: that's become... I don't know, makes certain places uninhabitable in

615
00:27:33,420 --> 00:27:36,370
Speaker 1: many ways. You think about, for instance, the northern coast

616
00:27:36,390 --> 00:27:38,550
Speaker 1: of Long Island or Connecticut, where they had a lot

617
00:27:38,570 --> 00:27:41,470
Speaker 1: of extreme flooding. How does that change evaluation of what

618
00:27:41,750 --> 00:27:45,389
Speaker 1: used to be fairly desirable regions that were always in demand?

619
00:27:46,200 --> 00:27:49,970
Speaker 11: So right now, there's no recognition of sort of flood

620
00:27:50,010 --> 00:27:51,149
Speaker 11: zone risk.

621
00:27:51,990 --> 00:27:54,369
Speaker 3: And that's going to.

622
00:27:54,330 --> 00:27:57,730
Speaker 11: Be a problem in 30 years, maybe not immediately.

623
00:27:58,410 --> 00:28:00,129
Speaker 3: But actually, what you're seeing.

624
00:28:00,010 --> 00:28:04,210
Speaker 11: Is in areas that are sort of constantly threatened by flooding,

625
00:28:04,840 --> 00:28:07,520
Speaker 11: we're actually seeing in these markets like in Long Island,

626
00:28:07,540 --> 00:28:10,840
Speaker 11: especially the south shore of Long Island, that these locations

627
00:28:10,880 --> 00:28:16,300
Speaker 11: that were formerly middle class waterfront type locations, Lots are

628
00:28:16,320 --> 00:28:18,700
Speaker 11: being doubled down, and it's luxury housing.

629
00:28:19,140 --> 00:28:23,600
Speaker 2: John, I need advice. Bess Friedman's coming on. She has

630
00:28:23,600 --> 00:28:27,820
Speaker 2: $ 36 million up Fifth Avenue. The monthly maintenance fee for

631
00:28:27,840 --> 00:28:32,970
Speaker 2: the guy standing out front.

632
00:28:31,810 --> 00:28:33,450
Speaker 4: Is $ 24, 396.

633
00:28:32,810 --> 00:28:33,129
Speaker 1: Wow.

634
00:28:33,350 --> 00:28:36,610
Speaker 3: That's almost like a Knicks ticket. I think that's real money, right?

635
00:28:37,350 --> 00:28:38,230
Speaker 3: That's real money.

636
00:28:38,250 --> 00:28:40,130
Speaker 1: That's a month's salary. It's a lease. I mean, someone's

637
00:28:40,190 --> 00:28:42,850
Speaker 1: annual salary. Jonathan, thank you so much for joining us today.

638
00:28:43,030 --> 00:28:43,730
Speaker 3: My pleasure.

639
00:28:43,800 --> 00:28:54,090
Speaker 1: Jonathan Miller is co-founder of Miller Samuel. This hour on

640
00:28:54,110 --> 00:28:57,010
Speaker 1: Bloomberg Money, we are talking about real estate. Bess Friedman,

641
00:28:57,030 --> 00:29:00,300
Speaker 1: CEO of Brown Harris Stevens, is with us. Bess, how

642
00:29:00,360 --> 00:29:03,040
Speaker 1: is business right now? Are people actually going in wanting

643
00:29:03,080 --> 00:29:04,420
Speaker 1: to buy or sell, or are they just kind of

644
00:29:04,700 --> 00:29:05,420
Speaker 1: forever looking?

645
00:29:06,160 --> 00:29:09,000
Speaker 7: Well, the market is actually really strong in New York City,

646
00:29:09,140 --> 00:29:12,920
Speaker 7: particularly at the high end of the market. That business

647
00:29:13,000 --> 00:29:15,900
Speaker 7: is really good, stronger than last year. But if you

648
00:29:15,920 --> 00:29:18,220
Speaker 7: look at Wall Street, it's supposed to make something like

649
00:29:18,220 --> 00:29:20,700
Speaker 7: $ 90 billion this year, and bonuses are going to be

650
00:29:20,740 --> 00:29:24,240
Speaker 7: something like $ 60 billion approximately. So You know, the rich

651
00:29:24,260 --> 00:29:26,900
Speaker 7: keep getting richer, and we have this sort of tale

652
00:29:26,920 --> 00:29:30,490
Speaker 7: of two different markets where discretionary spending is up, and

653
00:29:30,510 --> 00:29:33,090
Speaker 7: then we're in an affordability crisis on the other front,

654
00:29:33,110 --> 00:29:35,430
Speaker 7: which you guys talked about a little bit with Jonathan Miller.

655
00:29:35,870 --> 00:29:38,370
Speaker 1: So when you look at mortgage rates at these current levels,

656
00:29:38,410 --> 00:29:42,959
Speaker 1: almost 7.5 and mortgage rates affects the high-income buyer and

657
00:29:43,000 --> 00:29:45,960
Speaker 1: the low-income buyer just as much, what is the psychology

658
00:29:45,980 --> 00:29:48,670
Speaker 1: of sellers versus buyers now when you have mortgage rates

659
00:29:48,730 --> 00:29:50,070
Speaker 1: at 7.5%? You know, it depends.

660
00:29:50,310 --> 00:29:54,050
Speaker 7: So last year in New York City, 65% of the

661
00:29:54,110 --> 00:29:55,570
Speaker 7: deals were done without a mortgage.

662
00:29:55,630 --> 00:29:56,330
Speaker 4: They were cash.

663
00:29:56,490 --> 00:29:59,470
Speaker 7: So that's a little bit different. Most Americans get a mortgage.

664
00:29:59,540 --> 00:30:03,180
Speaker 7: And so, you know, rates are still historically pretty low,

665
00:30:03,320 --> 00:30:05,700
Speaker 7: but people are still adjusting. And the real issue, as

666
00:30:05,760 --> 00:30:09,520
Speaker 7: Jonathan said, is supply. We are 5 million homes in

667
00:30:09,580 --> 00:30:12,620
Speaker 7: deficit in the United States of America. My parents bought

668
00:30:12,640 --> 00:30:14,460
Speaker 7: a home when they were in their 20s. I bought

669
00:30:14,480 --> 00:30:15,760
Speaker 7: a home when I was in my 30s. And I

670
00:30:15,800 --> 00:30:17,840
Speaker 7: bet my kids are going to buy a home when they're.

671
00:30:17,720 --> 00:30:18,070
Speaker 11: In their 40s.

672
00:30:18,120 --> 00:30:19,050
Speaker 3: Or never buy one.

673
00:30:19,110 --> 00:30:19,870
Speaker 2: Or never buy one.

674
00:30:20,570 --> 00:30:23,720
Speaker 7: And the American dream is being, you know, running past us.

675
00:30:23,750 --> 00:30:26,030
Speaker 2: Your magic in the grind of real estate is you

676
00:30:26,070 --> 00:30:29,110
Speaker 2: started out reading real estate articles at Ithaca College a

677
00:30:29,150 --> 00:30:32,320
Speaker 2: million years ago. Ithaca College, like any other college town

678
00:30:32,340 --> 00:30:36,340
Speaker 2: with a number of universities, is an absolute outrage of

679
00:30:36,420 --> 00:30:37,940
Speaker 2: housing non-affordability.

680
00:30:37,980 --> 00:30:38,240
Speaker 3: That's right.

681
00:30:38,260 --> 00:30:40,780
Speaker 2: I mean, let's take Ithaca as a microcosm of what

682
00:30:40,860 --> 00:30:42,830
Speaker 2: needs to be done. Why can't we do it like

683
00:30:42,880 --> 00:30:44,790
Speaker 2: our grandparents and build houses?

684
00:30:45,090 --> 00:30:47,710
Speaker 7: Well, the challenge is state and local. You have to

685
00:30:47,750 --> 00:30:49,750
Speaker 7: get past the legislators.

686
00:30:49,110 --> 00:30:50,770
Speaker 1: And you need to change the zoning.

687
00:30:51,130 --> 00:30:54,020
Speaker 7: Like Mayor Adams was successful in getting the city of

688
00:30:54,040 --> 00:30:56,240
Speaker 7: Yes passed and we got more zoning in New York City.

689
00:30:56,560 --> 00:30:59,000
Speaker 7: We need more people that are willing to communicate and

690
00:30:59,040 --> 00:31:01,850
Speaker 7: work together. It shouldn't be what flag you wave. We

691
00:31:01,880 --> 00:31:04,330
Speaker 7: should just vote for good policies. And we have the

692
00:31:04,370 --> 00:31:07,030
Speaker 7: midterms coming up, and people are thinking about the economy,

693
00:31:07,070 --> 00:31:11,140
Speaker 7: but every politician should be talking about housing affordability. How

694
00:31:11,160 --> 00:31:13,140
Speaker 7: do we get more supply in the market? Those are

695
00:31:13,160 --> 00:31:15,540
Speaker 7: the most important things today for Americans. But they can't

696
00:31:15,580 --> 00:31:18,550
Speaker 7: solve that on their own, right? That becomes something very local,

697
00:31:19,070 --> 00:31:21,930
Speaker 7: and there's a lot of opponents and proponents.

698
00:31:21,950 --> 00:31:24,010
Speaker 1: There's a lot of nimbyism. I mean, it's a mess,

699
00:31:24,030 --> 00:31:25,470
Speaker 1: and it doesn't get solved anytime soon.

700
00:31:25,550 --> 00:31:27,520
Speaker 7: No, but it gets solved if people are willing to

701
00:31:27,580 --> 00:31:30,300
Speaker 7: just drop their flags and come together and talk and say,

702
00:31:30,320 --> 00:31:32,680
Speaker 7: how do we solve these problems? We have to stop

703
00:31:32,740 --> 00:31:34,080
Speaker 7: this sort of ridiculousness.

704
00:31:35,060 --> 00:31:36,120
Speaker 3: I look, Bess, at.

705
00:31:37,060 --> 00:31:40,020
Speaker 2: Some of the critics who say the kids aren't sacrificing.

706
00:31:40,060 --> 00:31:41,640
Speaker 3: They've got to do this. They've got to do that.

707
00:31:41,660 --> 00:31:45,090
Speaker 2: They're not saving their pennies to get the 20% down payment.

708
00:31:45,310 --> 00:31:47,010
Speaker 2: We're really beyond that now, aren't we?

709
00:31:47,030 --> 00:31:50,490
Speaker 7: Way past that. I mean, the wages can't even keep

710
00:31:50,670 --> 00:31:52,250
Speaker 7: up with what they would have to pay to buy

711
00:31:52,270 --> 00:31:55,000
Speaker 7: a home. It's just not affordable today for them. They

712
00:31:55,040 --> 00:31:55,820
Speaker 7: can't pay their rent.

713
00:31:55,840 --> 00:31:55,940
Speaker 11: Right.

714
00:31:56,400 --> 00:31:58,440
Speaker 7: I mean, a lot of my daughter's friends, their parents

715
00:31:58,480 --> 00:32:01,000
Speaker 7: are helping them to pay their rent today. It's a

716
00:32:01,080 --> 00:32:04,380
Speaker 7: tough environment for young people today. And so we have

717
00:32:04,420 --> 00:32:07,450
Speaker 7: to figure out solutions. It's our job to... We're the adults.

718
00:32:07,530 --> 00:32:08,850
Speaker 7: We need to come up with solutions.

719
00:32:09,130 --> 00:32:10,750
Speaker 1: You talked about how your parents bought a house when

720
00:32:10,770 --> 00:32:12,430
Speaker 1: they were in their 20s. There are a lot of

721
00:32:12,470 --> 00:32:15,490
Speaker 1: baby boomers that have homes, multiple homes, in fact. And

722
00:32:15,510 --> 00:32:18,459
Speaker 1: they have real assets that have appreciated a lot in value.

723
00:32:18,900 --> 00:32:22,800
Speaker 1: When they're passing, what happens... to that portfolio of houses

724
00:32:23,140 --> 00:32:25,300
Speaker 1: I mean do they get left to the kids left

725
00:32:25,320 --> 00:32:28,020
Speaker 1: to the grandkids I mean.

726
00:32:27,460 --> 00:32:31,410
Speaker 7: Obviously it's very circumstantial depending on but many times they'll

727
00:32:31,430 --> 00:32:33,230
Speaker 7: sell them and make a lot of money or it'll

728
00:32:33,270 --> 00:32:35,230
Speaker 7: go to the family and the family will sell it

729
00:32:35,330 --> 00:32:38,290
Speaker 7: it just depends on the person's circumstances but they made

730
00:32:38,370 --> 00:32:41,210
Speaker 7: enormous sums of money and having a home was a

731
00:32:41,230 --> 00:32:43,470
Speaker 7: big part of it it's a commitment to your future

732
00:32:43,560 --> 00:32:45,120
Speaker 7: and economic security for.

733
00:32:45,020 --> 00:32:47,600
Speaker 2: People For people that rent, they have to get into

734
00:32:47,640 --> 00:32:50,610
Speaker 2: a mindset of saying, I'm not going to get home appreciation.

735
00:32:50,620 --> 00:32:53,490
Speaker 2: I've got to rent, and I've also got to save,

736
00:32:53,530 --> 00:32:57,219
Speaker 2: whether it's retirement plan 401k, or frankly, accounts outside that.

737
00:32:57,440 --> 00:32:58,580
Speaker 2: Do you see that happening?

738
00:32:59,740 --> 00:33:03,250
Speaker 7: I don't see that enough happening. And I think, I

739
00:33:03,310 --> 00:33:07,830
Speaker 7: wish that more people were buying versus renting because you're literally, unfortunately,

740
00:33:08,130 --> 00:33:11,150
Speaker 7: throwing your money out the window. Now, if you're testing

741
00:33:11,210 --> 00:33:13,080
Speaker 7: a market and you're going to be there temporarily, I

742
00:33:13,100 --> 00:33:15,140
Speaker 7: totally get it. But if you plan to live in

743
00:33:15,160 --> 00:33:18,100
Speaker 7: a place, if you can, ideally, you want to buy

744
00:33:18,160 --> 00:33:19,660
Speaker 7: something and build equity.

745
00:33:19,720 --> 00:33:20,640
Speaker 3: So many people can't.

746
00:33:20,860 --> 00:33:24,070
Speaker 7: I know, but that is the very issue that we

747
00:33:24,110 --> 00:33:25,330
Speaker 7: have today in front of us.

748
00:33:25,410 --> 00:33:27,510
Speaker 1: For those who do have the means to buy a place,

749
00:33:28,370 --> 00:33:29,930
Speaker 1: they go to a broker and they look at the

750
00:33:29,990 --> 00:33:33,090
Speaker 1: listings to see what's available. There's a thing called private listings.

751
00:33:33,130 --> 00:33:35,110
Speaker 1: How big of a deal is this where you don't

752
00:33:35,150 --> 00:33:38,070
Speaker 1: have access to the houses that are available, those apartments

753
00:33:38,090 --> 00:33:39,730
Speaker 1: that are available that other people do?

754
00:33:39,870 --> 00:33:41,620
Speaker 7: I mean, I think it's a huge issue. I mean,

755
00:33:41,650 --> 00:33:43,860
Speaker 7: if we think about fair housing, we don't want to

756
00:33:43,900 --> 00:33:47,560
Speaker 7: dismantle fair housing laws. And fair housing is not about

757
00:33:47,640 --> 00:33:49,160
Speaker 7: the intent of the policy.

758
00:33:49,240 --> 00:33:50,320
Speaker 4: It's about the impact.

759
00:33:50,720 --> 00:33:53,140
Speaker 7: And if people can't get access to homes, it's gonna

760
00:33:53,180 --> 00:33:56,260
Speaker 7: have a very bad impact on minorities. Derek Johnson, the

761
00:33:56,300 --> 00:34:00,090
Speaker 7: president of the NAACP, spoke specifically about this in his

762
00:34:00,160 --> 00:34:03,650
Speaker 7: piece in Time. And I think access to housing is crucial.

763
00:34:03,690 --> 00:34:06,370
Speaker 7: We just talked about having a housing affordability crisis.

764
00:34:06,830 --> 00:34:08,069
Speaker 1: This is a real problem.

765
00:34:08,230 --> 00:34:10,330
Speaker 7: And let me ask you, if you were buying a home,

766
00:34:10,810 --> 00:34:12,770
Speaker 7: Would you want to know how many days the home

767
00:34:12,790 --> 00:34:13,470
Speaker 7: was on the market?

768
00:34:13,590 --> 00:34:14,050
Speaker 3: Absolutely.

769
00:34:14,239 --> 00:34:15,359
Speaker 1: Well, that's what they're doing.

770
00:34:15,400 --> 00:34:18,320
Speaker 7: They are hiding that information with the private listing networks.

771
00:34:18,340 --> 00:34:20,600
Speaker 7: They're saying that the days on market.

772
00:34:20,980 --> 00:34:23,830
Speaker 2: I'm going to interrupt. This is so important. I look

773
00:34:23,870 --> 00:34:26,569
Speaker 2: at other countries' real estate, and we're heading back to

774
00:34:26,590 --> 00:34:28,790
Speaker 2: the opaqueness. of those other countries.

775
00:34:28,830 --> 00:34:29,350
Speaker 3: Thank you.

776
00:34:29,570 --> 00:34:32,170
Speaker 1: And that's 100%.

777
00:34:32,170 --> 00:34:35,550
Speaker 2: We're retreating back to what I see in other nations. 100%.

778
00:34:35,550 --> 00:34:39,120
Speaker 7: And that's why we've been raising alarm bells and saying, look,

779
00:34:39,480 --> 00:34:42,540
Speaker 7: this is not helpful. I mean, there are investigations going on,

780
00:34:42,980 --> 00:34:45,420
Speaker 7: but this is a policy or platform that is super

781
00:34:45,480 --> 00:34:48,840
Speaker 7: dangerous to fair housing, to affordability, to everything that matters.

782
00:34:49,140 --> 00:34:52,200
Speaker 7: And we should not allow these private listing networks to exist.

783
00:34:52,719 --> 00:34:54,469
Speaker 2: We've got our books out today, and we did it

784
00:34:54,510 --> 00:34:55,850
Speaker 2: on real estate for Bess.

785
00:34:55,910 --> 00:34:56,890
Speaker 3: We've been here.

786
00:34:57,270 --> 00:35:00,930
Speaker 2: Scarlett, why don't you start with your piercingly wonderful book?

787
00:35:00,969 --> 00:35:03,450
Speaker 1: Well, Bess mentioned zoning and how that's a big deal.

788
00:35:03,560 --> 00:35:04,759
Speaker 3: No, no, no.

789
00:35:04,820 --> 00:35:06,540
Speaker 1: It's not boring because my book is called- It is

790
00:35:06,560 --> 00:35:07,200
Speaker 1: a little boring.

791
00:35:07,320 --> 00:35:07,660
Speaker 9: No, no, no.

792
00:35:07,700 --> 00:35:08,000
Speaker 2: Book is?

793
00:35:08,040 --> 00:35:09,500
Speaker 1: I'm going to connect it, right?

794
00:35:09,540 --> 00:35:09,779
Speaker 9: Okay.

795
00:35:09,800 --> 00:35:12,570
Speaker 1: My book is Paved Paradise, How Parking Explains the World

796
00:35:12,610 --> 00:35:15,350
Speaker 1: by Henry Graybar. And full disclosure, this book is on

797
00:35:15,390 --> 00:35:17,500
Speaker 1: my reading list, so I have not yet started it.

798
00:35:17,590 --> 00:35:20,170
Speaker 1: But the basic thesis here is that Americans expect parking

799
00:35:20,210 --> 00:35:24,339
Speaker 1: to be convenient, available, and free. So that leaves the U.S. over-parked,

800
00:35:24,500 --> 00:35:28,500
Speaker 1: lots of parking, and under-housed. That's another contributing factor to

801
00:35:28,520 --> 00:35:30,180
Speaker 1: the fact that we have limited supply.

802
00:35:30,239 --> 00:35:32,700
Speaker 7: Yeah, a lot of economists and people talk about this,

803
00:35:32,719 --> 00:35:35,110
Speaker 7: that that could help if we could build more housing

804
00:35:35,130 --> 00:35:37,790
Speaker 7: in those areas near MTA state where people can get

805
00:35:37,830 --> 00:35:40,330
Speaker 7: to public transportation. We don't need to have so many

806
00:35:40,370 --> 00:35:41,590
Speaker 7: cars and so much parking.

807
00:35:41,630 --> 00:35:44,219
Speaker 1: We need more homes. There are rules in certain cities

808
00:35:44,260 --> 00:35:47,020
Speaker 1: that require new housing developments to build a minimum number

809
00:35:47,060 --> 00:35:50,340
Speaker 1: of parking spaces. And so this simultaneously raises the cost

810
00:35:50,400 --> 00:35:53,339
Speaker 1: of construction and then gives NIMBY people a reason to

811
00:35:53,400 --> 00:35:54,320
Speaker 1: object to new developments.

812
00:35:54,340 --> 00:35:56,190
Speaker 2: And that's one of the ideas that they're working with,

813
00:35:56,210 --> 00:35:58,910
Speaker 2: trying to get a little more uh a little more

814
00:35:58,969 --> 00:36:02,910
Speaker 2: done because Bess Friedman is here mine is on home

815
00:36:02,950 --> 00:36:05,279
Speaker 2: design can you see me on a ladder like a

816
00:36:05,360 --> 00:36:05,960
Speaker 2: threat to.

817
00:36:05,860 --> 00:36:08,500
Speaker 3: Society what do you do if you're dealing with the

818
00:36:08,560 --> 00:36:09,080
Speaker 3: Upper East.

819
00:36:09,020 --> 00:36:14,460
Speaker 2: Side and Bess Farrow and Ball recipes for decorating Bess

820
00:36:14,480 --> 00:36:16,410
Speaker 2: has been in their seven I think it's the 70th

821
00:36:16,450 --> 00:36:20,190
Speaker 2: street office so many times and I'm sorry what it's

822
00:36:20,270 --> 00:36:24,070
Speaker 2: about it's about the color I mean, you look, the color,

823
00:36:24,110 --> 00:36:25,860
Speaker 2: you know, each color tells a story.

824
00:36:25,930 --> 00:36:28,500
Speaker 4: Oh, color with a U-L-O-U-R.

825
00:36:28,719 --> 00:36:32,279
Speaker 1: Oh, color. This is a new vocabulary.

826
00:36:32,300 --> 00:36:34,640
Speaker 2: John Farrow told me that, you know, it's not Saturday

827
00:36:34,660 --> 00:36:37,270
Speaker 2: Night Live. John Farrow, I said, John's British and Farrow

828
00:36:37,330 --> 00:36:39,290
Speaker 2: and Ball is very British. I said, John, I said,

829
00:36:39,330 --> 00:36:40,130
Speaker 2: how do you pronounce it?

830
00:36:40,170 --> 00:36:41,730
Speaker 3: John said, color. I said, okay.

831
00:36:41,770 --> 00:36:42,130
Speaker 2: Okay.

832
00:36:43,550 --> 00:36:46,310
Speaker 3: I mean, everybody has to redecorate, right? The fancy people.

833
00:36:46,489 --> 00:36:49,279
Speaker 7: Yes, the fancy people. Yes, and they have to say

834
00:36:49,320 --> 00:36:50,520
Speaker 7: color instead of color.

835
00:36:50,580 --> 00:36:51,160
Speaker 1: Apparently.

836
00:36:51,180 --> 00:36:52,620
Speaker 4: That's the way it works. Yes.

837
00:36:52,980 --> 00:36:56,060
Speaker 1: So this book treats paint and color choices like cooking recipes.

838
00:36:56,280 --> 00:36:57,779
Speaker 1: Fair and bold. Like a formula you can follow.

839
00:36:57,800 --> 00:37:00,590
Speaker 2: It started in Dorset, and their magic was they didn't

840
00:37:00,790 --> 00:37:03,930
Speaker 2: use chemicals. They used soil, dirt. They would charcoal it

841
00:37:04,010 --> 00:37:06,870
Speaker 2: and all that. And it used to be reasonably priced.

842
00:37:07,070 --> 00:37:10,090
Speaker 2: Over the years, thank you to Mr. Trump's tariffs as well,

843
00:37:10,870 --> 00:37:14,510
Speaker 2: is to the Saturday Night Live spoof. It's outrageously expensive.

844
00:37:14,550 --> 00:37:16,970
Speaker 2: The only people that can use this stuff are people

845
00:37:17,030 --> 00:37:18,120
Speaker 2: that deal with Bess Friedman.

846
00:37:18,760 --> 00:37:19,350
Speaker 3: I mean, that's it.

847
00:37:19,400 --> 00:37:22,240
Speaker 1: Bess Friedman deals with everybody. She likes everybody.

848
00:37:22,260 --> 00:37:25,180
Speaker 7: I work with everyone. Even the people who like Kalor.

849
00:37:26,880 --> 00:37:29,299
Speaker 1: What color would you paint your north-facing room versus your

850
00:37:29,340 --> 00:37:30,340
Speaker 1: south-facing room?

851
00:37:31,010 --> 00:37:34,390
Speaker 2: Well, that's actually a sophisticated discussion. I mean, the fancy

852
00:37:34,410 --> 00:37:36,590
Speaker 2: people in Fifth Avenue will have six shades of white.

853
00:37:36,690 --> 00:37:39,580
Speaker 1: There you go. No, six shades of, like, eggshell, not white.

854
00:37:39,600 --> 00:37:39,920
Speaker 3: That's right.

855
00:37:39,940 --> 00:37:41,239
Speaker 4: It's eggshell. That's correct.

856
00:37:41,300 --> 00:37:42,500
Speaker 3: Excuse me. I'm out of touch.

857
00:37:42,600 --> 00:37:43,000
Speaker 1: Off-white.

858
00:37:43,120 --> 00:37:43,500
Speaker 3: Off-white.

859
00:37:44,000 --> 00:37:45,259
Speaker 1: Bess, thank you so much for joining us.

860
00:37:45,260 --> 00:37:45,440
Speaker 11: So fun.

861
00:37:45,480 --> 00:37:46,859
Speaker 3: You guys are wonderful. We'll do it again.

862
00:37:46,880 --> 00:37:49,489
Speaker 1: Thanks, guys. Bess Friedman, CEO of Brown Harris Stevens. And

863
00:37:49,530 --> 00:37:52,730
Speaker 1: for the latest reviews and recommendations from Bloomberg, be sure

864
00:37:52,770 --> 00:37:56,650
Speaker 1: to subscribe to the On Books newsletter. Bess, come back anytime.

865
00:37:57,010 --> 00:38:00,210
Speaker 1: You guys are so fun. Coming up, the NBA season

866
00:38:00,250 --> 00:38:04,820
Speaker 1: begins on Tuesday. The Knicks begin their title defense.

867
00:38:04,950 --> 00:38:07,890
Speaker 3: Tom? $ 61, 000.

868
00:38:06,090 --> 00:38:09,640
Speaker 2: For two tickets where you want to sit. Just by Jalen.

869
00:38:09,920 --> 00:38:11,480
Speaker 1: Have we pulled the trigger yet? Are we doing it?

870
00:38:11,480 --> 00:38:12,500
Speaker 3: No, we're not. We're looking.

871
00:38:12,540 --> 00:38:14,339
Speaker 2: Alexis Christophorus may go.

872
00:38:14,500 --> 00:38:14,820
Speaker 1: Okay.

873
00:38:14,900 --> 00:38:15,380
Speaker 2: All right.

874
00:38:15,480 --> 00:38:16,830
Speaker 1: Well, we'll see how it all shakes out.

875
00:38:18,270 --> 00:38:21,330
Speaker 2: You're listening to Bloomberg Money. Stay with us with more

876
00:38:21,350 --> 00:38:29,259
Speaker 2: to come after this. Bloomberg Money here on Personal Finance, Retirement,

877
00:38:29,300 --> 00:38:30,219
Speaker 2: Wealth Management.

878
00:38:30,500 --> 00:38:33,450
Speaker 3: I've got to say this again, CoreWeave. Good morning, Ed Ludlow.

879
00:38:33,870 --> 00:38:35,930
Speaker 2: And a good afternoon.

880
00:38:35,530 --> 00:38:36,290
Speaker 3: To Ed Ludlow.

881
00:38:36,370 --> 00:38:38,910
Speaker 2: What a week for him on technology. I've got to

882
00:38:38,950 --> 00:38:41,950
Speaker 2: say it because I called it CrossWeave this morning. CrossWeave?

883
00:38:41,969 --> 00:38:44,239
Speaker 3: CrossWeave. Yeah, I nailed it. CoreWeave here down $ 7.

884
00:38:44,160 --> 00:38:46,899
Speaker 1: Yeah, well, it's been a brutal week for CoreWeave.

885
00:38:46,940 --> 00:38:48,399
Speaker 3: That's as much tech as we're doing today.

886
00:38:48,460 --> 00:38:48,970
Speaker 4: That is it.

887
00:38:49,040 --> 00:38:52,710
Speaker 1: OK, let's move on to basketball because the world champion

888
00:38:52,770 --> 00:38:55,150
Speaker 1: New York Knicks begin their season on Tuesday.

889
00:38:55,310 --> 00:38:55,830
Speaker 2: Yay.

890
00:38:56,770 --> 00:38:58,489
Speaker 1: And it's going to be huge. They're going to take

891
00:38:58,650 --> 00:39:01,800
Speaker 1: on the Philadelphia 76ers. And Lisa Mateo is here with

892
00:39:01,910 --> 00:39:03,960
Speaker 1: us to look ahead to all of this. She is

893
00:39:03,980 --> 00:39:06,219
Speaker 1: co-host of Bloomberg This Weekend. I know you've been doing

894
00:39:06,260 --> 00:39:08,299
Speaker 1: a lot of reporting around this. Yes, yes, yes.

895
00:39:08,340 --> 00:39:11,520
Speaker 9: I mean, it's the Sixers. It's LeBron in a Sixers jersey.

896
00:39:11,800 --> 00:39:12,759
Speaker 9: The next, the same day.

897
00:39:12,780 --> 00:39:13,580
Speaker 1: Titan versus Titan.

898
00:39:13,660 --> 00:39:16,070
Speaker 9: Yes, and like the same day, they're hiding up that

899
00:39:16,410 --> 00:39:18,810
Speaker 9: championship banner to the top of Madison Square Garden. So

900
00:39:18,950 --> 00:39:21,290
Speaker 9: everybody's out there. I took a little sneak peek because

901
00:39:21,330 --> 00:39:23,930
Speaker 9: a girl can dream. Okay, went on StubHub. Courtside, you

902
00:39:23,950 --> 00:39:25,109
Speaker 9: can still get $ 19, 000 tickets.

903
00:39:25,190 --> 00:39:25,750
Speaker 4: Oh, my God.

904
00:39:26,090 --> 00:39:28,810
Speaker 1: Okay, and even at the way top, $ 1, 100. That's the cheapest.

905
00:39:30,270 --> 00:39:30,930
Speaker 4: That it's going to go.

906
00:39:30,950 --> 00:39:33,280
Speaker 1: The cheap seats are $ 1, 100. Cheap seats are $ 1, 100.

907
00:39:33,140 --> 00:39:36,000
Speaker 2: You look down at the court, it's like Jupiter in

908
00:39:36,060 --> 00:39:37,779
Speaker 2: the western sky at night.

909
00:39:37,800 --> 00:39:38,600
Speaker 3: It's crazy.

910
00:39:39,060 --> 00:39:41,160
Speaker 9: But, you know, this is what we're talking about on

911
00:39:41,180 --> 00:39:43,299
Speaker 9: Bloomberg this weekend. It is all about the merch, right?

912
00:39:43,320 --> 00:39:43,440
Speaker 11: Mm-hmm.

913
00:39:43,739 --> 00:39:47,100
Speaker 9: And it is the growing woman sports fan. And that's

914
00:39:47,140 --> 00:39:50,120
Speaker 9: kind of what we're focusing on. Because women have the

915
00:39:50,180 --> 00:39:53,480
Speaker 9: buying power. They love to shop. There's more women watching.

916
00:39:53,520 --> 00:39:56,200
Speaker 9: The fans are growing. So I sat down. Her name

917
00:39:56,260 --> 00:40:01,310
Speaker 9: is Zara Therese Tish. And she is owner of this company, Therese.

918
00:40:01,330 --> 00:40:04,750
Speaker 9: They're an activewear company. But she has the licensing with

919
00:40:04,810 --> 00:40:08,630
Speaker 9: about 100 teams. So she does the NHL, the MLB,

920
00:40:08,690 --> 00:40:10,990
Speaker 9: the NFL. All the teams.

921
00:40:11,090 --> 00:40:12,330
Speaker 4: Plus she does WNBA sports.

922
00:40:12,790 --> 00:40:14,350
Speaker 9: She does some of the National Women's Soccer League.

923
00:40:14,370 --> 00:40:16,239
Speaker 1: So she's designing it or her team is designing it?

924
00:40:16,260 --> 00:40:18,010
Speaker 9: So she is designing it. Her team is designing it.

925
00:40:18,680 --> 00:40:21,160
Speaker 9: And they put out, you know, all the collection out there. Now,

926
00:40:21,200 --> 00:40:22,280
Speaker 9: this is high-end merch.

927
00:40:22,340 --> 00:40:23,100
Speaker 4: Just want to let you know.

928
00:40:23,180 --> 00:40:25,020
Speaker 9: Like a tank top will run you about $ 70. The

929
00:40:25,040 --> 00:40:29,590
Speaker 9: bomber jacket, which I loved. It's going to be about $ 350.

930
00:40:29,130 --> 00:40:31,589
Speaker 1: And that's a New York Giants t-shirt or hoodie. And

931
00:40:31,610 --> 00:40:34,310
Speaker 1: that's because her husband is David Tisch?

932
00:40:34,550 --> 00:40:36,649
Speaker 9: Yeah, well, her husband is David Tisch, so he has

933
00:40:36,690 --> 00:40:40,049
Speaker 9: that family history line, you know, to the Tisch family.

934
00:40:40,150 --> 00:40:42,610
Speaker 9: It was his great uncle that actually bought the New

935
00:40:42,650 --> 00:40:43,910
Speaker 9: York Giants way back in the day.

936
00:40:43,969 --> 00:40:45,680
Speaker 1: So this is not just pink it and shrink it.

937
00:40:45,730 --> 00:40:47,330
Speaker 1: This is, like, designed for women.

938
00:40:47,350 --> 00:40:50,810
Speaker 9: This is designed for women by women. And it's not, like,

939
00:40:50,950 --> 00:40:52,450
Speaker 9: just pink. You know how we come out and it's, like,

940
00:40:52,550 --> 00:40:54,390
Speaker 9: either pink or in the back of the day you

941
00:40:54,410 --> 00:40:56,690
Speaker 9: had to go and, like, wear your husband's jersey because

942
00:40:56,710 --> 00:40:58,180
Speaker 9: they didn't have anything for the child.

943
00:40:58,320 --> 00:40:59,740
Speaker 4: This is a little bit different.

944
00:40:59,780 --> 00:41:01,340
Speaker 9: So it's like sequence.

945
00:41:01,380 --> 00:41:02,739
Speaker 1: It's all these type of different things.

946
00:41:02,800 --> 00:41:04,779
Speaker 9: But because you have to go, you go to a

947
00:41:04,780 --> 00:41:06,960
Speaker 9: Knicks game and you think about it, it's a fashion show. Oh,

948
00:41:06,980 --> 00:41:07,359
Speaker 9: it is.

949
00:41:08,060 --> 00:41:09,759
Speaker 1: Tom, I think it's time for us to check out

950
00:41:09,800 --> 00:41:11,250
Speaker 1: the merch at the New York Knicks game.

951
00:41:11,550 --> 00:41:13,109
Speaker 2: I've already checked it out.

952
00:41:13,150 --> 00:41:15,770
Speaker 3: We have custom made Jalen shoes.

953
00:41:16,010 --> 00:41:18,990
Speaker 1: Lisa Mateo, thank you. Be sure to catch Bloomberg this weekend,

954
00:41:19,030 --> 00:41:20,209
Speaker 1: every Saturday and Sunday morning.

955
00:41:28,110 --> 00:41:31,750
Speaker 2: This is the Bloomberg Money Podcast, bringing you a smart

956
00:41:31,790 --> 00:41:35,750
Speaker 2: look at the forces shaping your financial life. I'm Tom

957
00:41:35,810 --> 00:41:39,030
Speaker 2: Keen with Scarlett Fu. You can watch the show live

958
00:41:39,430 --> 00:41:42,890
Speaker 2: on Bloomberg TV every Friday at noon Wall Street time.

959
00:41:43,370 --> 00:41:47,879
Speaker 2: Subscribe to the podcast on Apple, Spotify, or wherever you listen.

960
00:41:48,320 --> 00:41:51,580
Speaker 2: And as always, on the Bloomberg Terminal and the Bloomberg

961
00:41:51,640 --> 00:41:56,020
Speaker 2: Business app. Thank you.