WEBVTT - Fed Gets a Win Deflating Asset Bubbles 0:00:01.840 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.320 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world of business and finance, 0:00:09.880 --> 0:00:13.680 plus technology, politics, economics, all furnishing the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:19.640 analyst in more than one and twenty countries. You can 0:00:19.680 --> 0:00:23.239 download Bloomberg Business Week on iTunes, SoundCloud, or Bloomberg dot com. 0:00:23.400 --> 0:00:25.160 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:31.440 YouTube and now also on Bloomberg Quick Take. We got 0:00:31.440 --> 0:00:33.120 more Fed talk we want to get to. Yeah, well, 0:00:33.120 --> 0:00:35.080 speaking to the FED, it's not really succeeding when it 0:00:35.120 --> 0:00:37.440 comes to its dual mandate. Yes, unemployment is low, but 0:00:37.560 --> 0:00:41.360 inflation remains sky high. That's at It's monetary tightening campaign 0:00:41.400 --> 0:00:44.040 is having a major impact in deflating asset bubbles that 0:00:44.120 --> 0:00:46.519 just swelled during the pandemic. I mean, we're talking crypto 0:00:46.680 --> 0:00:49.680 housing prices, tech stocks, and it's doing so without up 0:00:49.760 --> 0:00:53.440 ending its financial system. Rich Miller writes all about it. 0:00:53.479 --> 0:00:56.080 He's Bloomberg News Economics reporter he joins his via zoom 0:00:56.080 --> 0:00:59.160 from Washington, d C. Rich. Good to have you with 0:00:59.280 --> 0:01:01.960 us this ternon. So take us through the metrics that 0:01:01.960 --> 0:01:05.800 you looked at when you talk about deflating asset bubbles here. Well, 0:01:05.840 --> 0:01:09.199 I mean, obviously the one that topic topic the juror 0:01:09.200 --> 0:01:12.040 at the moment is is crypto, right, and that's depending 0:01:12.080 --> 0:01:15.759 on how you measured It's the market cap of crypto 0:01:16.000 --> 0:01:18.920 is down about two thirds from like three trillion dollar 0:01:19.000 --> 0:01:22.520 high not too long ago. Um. If you can look 0:01:22.520 --> 0:01:27.120 at the Fang stocks, they're down about more than fifty um. 0:01:27.240 --> 0:01:29.759 Nasac is down less than that, but Nasac as a whole. 0:01:29.760 --> 0:01:33.480 But if you um look at the Fang stocks that 0:01:33.560 --> 0:01:37.039 down by more than fifty cent, and the house prices 0:01:37.080 --> 0:01:40.160 they're just starting to tick over. But you know, this 0:01:40.240 --> 0:01:43.160 is the first time they've basically started the decline and 0:01:43.800 --> 0:01:47.920 in ten in ten years, um, so all across the 0:01:47.960 --> 0:01:52.560 board we're seeing sort of pretty weak asset prices. And 0:01:52.600 --> 0:01:56.880 if you would you know, I told people, you know 0:01:56.920 --> 0:01:59.320 that the FED was gonna raise rates so aggressively a 0:01:59.400 --> 0:02:02.240 year ago, Uh, they would have said, oh my god, 0:02:02.400 --> 0:02:04.960 you know, we're gonna see havoc in the financial markets. 0:02:05.000 --> 0:02:09.000 You're gonna you're gonna see um firms going bust. You're 0:02:09.000 --> 0:02:14.280 gonna see uh bank runs, You're gonna see etcetera, etcetera. 0:02:14.960 --> 0:02:17.120 None of that has happened. You know, we we the 0:02:17.160 --> 0:02:19.280 air is coming out of these bubbles. But so far, 0:02:19.560 --> 0:02:22.359 so far, and that's a big, big provisor. So far, 0:02:22.480 --> 0:02:25.400 it hasn't really you know, you know, shaking the financial 0:02:25.480 --> 0:02:28.440 system like we saw in you know, the Great Financial Crisis. 0:02:28.720 --> 0:02:30.960 It's interesting, I mean even looking at something like commodities, 0:02:31.000 --> 0:02:35.359 they're down about uh from their high back in June, 0:02:35.360 --> 0:02:37.680 and some of that's geopolitical rich, but you do wonder, 0:02:37.800 --> 0:02:41.120 right like it makes you think might the FED f 0:02:41.200 --> 0:02:43.360 O M. C. J. Powell and Company be able to 0:02:43.400 --> 0:02:47.280 engineer that soft landing? Yeah? I mean it it increases 0:02:47.320 --> 0:02:52.440 the chances, right um um. Obviously, if if you really 0:02:52.480 --> 0:02:57.440 saw havoc in the system, you know, the the we'll 0:02:57.480 --> 0:03:00.840 be heading into a recession, very clear really and probably 0:03:00.880 --> 0:03:04.160 a deep one, and and the FED would have to 0:03:04.200 --> 0:03:08.200 be cutting rates a lot. But uh, so far they can. 0:03:08.280 --> 0:03:11.359 They've been able to keep raising race without sort of 0:03:11.840 --> 0:03:14.440 causing so much havoc in the financial market that that 0:03:14.600 --> 0:03:17.840 that they'll have to you know, stop or retrace. And 0:03:18.160 --> 0:03:20.000 I've got a quote in there from Jeremy Stein, he's 0:03:20.000 --> 0:03:22.200 an ex fed governor, and you know he said, you know, 0:03:22.680 --> 0:03:24.120 if you had told me a year ago that they 0:03:24.160 --> 0:03:26.079 were going to be raising this, I'd say, oh my god, 0:03:26.200 --> 0:03:28.880 you know, you're gonna crack everything up. But so far 0:03:29.000 --> 0:03:31.640 we haven't. Is One of the reasons why this is 0:03:31.720 --> 0:03:35.080 kind of okay is because it goes to what's referred 0:03:35.080 --> 0:03:40.120 to as the wealth effect. When people's assets decline, they 0:03:40.640 --> 0:03:43.520 tend not to spend as much money on large purchases. 0:03:43.880 --> 0:03:47.760 But it's not huge though, right, Yeah, I mean I 0:03:47.760 --> 0:03:51.120 think the economists say it's you know, for every dollar full, 0:03:51.160 --> 0:03:55.800 it's only like a couple of cents off consumption basically, right, 0:03:56.280 --> 0:03:58.400 it might be a little a little, a little bit. 0:03:58.440 --> 0:04:01.920 But does that have an effect to bring down inflation. Well, 0:04:01.920 --> 0:04:05.440 that'll that'll be one factor contributing to uh, you know, 0:04:05.480 --> 0:04:08.600 a slowdown and consumption. And that's what the fit defend wants, 0:04:09.200 --> 0:04:12.760 you know, consumption to slow, demand to slow so that 0:04:13.040 --> 0:04:16.000 that's that's one of the one of the one of 0:04:16.040 --> 0:04:18.400 the vehicles. But I guess the main vehicles are what 0:04:18.440 --> 0:04:20.960 you'd say, you know, your higher buying costs right, so 0:04:21.080 --> 0:04:26.359 housing um buying less you know, fewer cars, buying, fewer 0:04:27.279 --> 0:04:31.720 durable goods. That would be the main um mechanism by 0:04:31.760 --> 0:04:34.800 which the higher interest rates would slow the economy down. 0:04:34.880 --> 0:04:39.440 But a peripheral periphetly we would also by by knocking 0:04:39.440 --> 0:04:41.840 asset prices down and makes people feel less rich. I'm 0:04:41.839 --> 0:04:43.599 gonna save a little more, I'm not going to spend 0:04:43.600 --> 0:04:45.520 that money, right. You know one thing I want to 0:04:45.520 --> 0:04:47.760 ask you, rich and I wonder if we can't roll 0:04:47.800 --> 0:04:50.520 out some kind of financial blow up, which you you 0:04:50.560 --> 0:04:52.080 point out your story because you know, one of the 0:04:52.080 --> 0:04:53.919 things I think about this, I'm not saying this is 0:04:53.920 --> 0:04:57.200 a blow but you have Blackstones Behemoth private credit fund, 0:04:57.640 --> 0:05:00.160 you know, hitting redemption limits for the first time. It's 0:05:00.200 --> 0:05:03.400 to your histories because you had investors pulling out some 0:05:03.560 --> 0:05:06.400 fifty billion dollars from the corporate landing. But like I 0:05:06.400 --> 0:05:08.920 saw that, and we continue to kind of figure out 0:05:08.960 --> 0:05:12.800 corporate real estate, like might it not come back fully 0:05:12.920 --> 0:05:16.400 post pandemic and so what happens? So I just wonder, 0:05:16.440 --> 0:05:20.640 is there's something potentially that could still happen. Yeah, yeah, 0:05:20.680 --> 0:05:25.000 I mean that actually that that fun the Blackstone Fund 0:05:25.040 --> 0:05:30.000 has actually been doing pretty well. So um uh, it's 0:05:30.000 --> 0:05:32.279 not like you know, people are pulling the money out 0:05:32.320 --> 0:05:36.400 because they um because they weren't getting performance yet losing 0:05:36.400 --> 0:05:38.880 money that they either they're pulling out to take profits 0:05:38.960 --> 0:05:41.039 or or they're pulling it out because they think, you know, 0:05:41.120 --> 0:05:43.480 maybe next year won't be so good as as for 0:05:43.600 --> 0:05:47.240 a commercial real estate as the dividends that they've been 0:05:47.240 --> 0:05:51.280 getting from that as as last year, and you know 0:05:51.320 --> 0:05:54.560 that fun did have you know a rule saying how 0:05:54.600 --> 0:05:59.800 much you could redeem? You know, So it's it's I'm 0:05:59.800 --> 0:06:02.839 not sure it's a sign of like you know, financial 0:06:02.880 --> 0:06:07.679 cracks are happening. Uh. I think it's more idiosynchronic. Actually, 0:06:08.160 --> 0:06:15.240 there was a caveat in here that you made. When 0:06:15.320 --> 0:06:18.440 when when does that caveat, if at all, come true? 0:06:18.440 --> 0:06:20.200 What do we need to look for to make sure that, 0:06:20.240 --> 0:06:22.440 you know, it doesn't up end the economy? What's the 0:06:22.480 --> 0:06:26.040 first sign? Yeah? I mean what you know? I wish 0:06:26.080 --> 0:06:27.960 I could tell you and right now I wouldn't be 0:06:28.000 --> 0:06:29.720 talking to you guys right or I'll be talking to 0:06:29.760 --> 0:06:32.560 you from a yacht right. We would welcome that with 0:06:32.640 --> 0:06:37.520 the great Internet connection too, I bet um uh, well, 0:06:37.560 --> 0:06:40.440 as we saw with the UK. I mean we're, you know, 0:06:40.520 --> 0:06:43.200 all of a sudden pension funds at all places, right, 0:06:43.279 --> 0:06:45.240 you know, we thought, you know, these are supposed to 0:06:45.240 --> 0:06:47.679 be rock solid, you know, all of a sudden that 0:06:47.680 --> 0:06:51.800 that you know, these things can come out of the blue. 0:06:51.960 --> 0:06:55.120 I mean, the regulators are doing their best to keep 0:06:55.160 --> 0:07:01.600 an eye on everything, but um, it's hard beforehand. You know, 0:07:01.880 --> 0:07:04.159 there's that Buffett saying, right when the when the tide 0:07:04.200 --> 0:07:07.560 goes out, you see who's swimming naked? Right? Um, you know, 0:07:07.600 --> 0:07:10.040 when when when the interest rates go up, you see 0:07:10.040 --> 0:07:12.720 who's sort of highly leveraged, and you know who who 0:07:12.800 --> 0:07:15.760 who Who's caught with their pants verbal pants now so 0:07:15.840 --> 0:07:20.280 to speak. So yeah, I mean mixing a lot of 0:07:20.280 --> 0:07:25.120 metaphors here, but anyway, yeah, um, you know, still to 0:07:25.160 --> 0:07:27.760 be said. But I mean, so far, so good. All right, Rich, 0:07:27.800 --> 0:07:30.000 we gotta run. Thank you so much. Rich Miller, economics 0:07:30.000 --> 0:07:32.520 reporter at Bloomberg News, joining us via zoom from Washington, 0:07:32.640 --> 0:07:37.840 d See Carol Master, Timsdanovich. This is Bloomberg Radio. This 0:07:38.120 --> 0:07:42.240 is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes. 0:07:42.280 --> 0:07:47.920 Tim Stenovic on Bloomberg Radio. Since life expanded, expectancy in 0:07:47.920 --> 0:07:50.720 the United States has declined two points seven years. It 0:07:50.840 --> 0:07:53.480 is the largest since World War Two that declined. Black 0:07:53.520 --> 0:07:57.320 Americans lost four years of life expectancy and Indigenous Americans 0:07:57.320 --> 0:07:59.320 lost more than six In our next guests as we 0:07:59.440 --> 0:08:01.680 can do a lot better, he writes about it in 0:08:01.720 --> 0:08:04.800 a recent article for Bloomberg City Lab. We're very pleased 0:08:04.800 --> 0:08:07.120 to have back with us. Dr Joshua Sharfstein. He's Igstein 0:08:07.200 --> 0:08:10.040 for the Public Health Practice and Community Engagement and director 0:08:10.240 --> 0:08:12.920 of the Bloomberg American Health Initiative. It's at the Johns 0:08:12.920 --> 0:08:15.080 Hopkins Bloomberg School of Public Health. It is supported by 0:08:15.080 --> 0:08:18.880 Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies, 0:08:18.920 --> 0:08:21.720 also the co author of the Opioid Epidemic What Everyone 0:08:21.760 --> 0:08:24.240 Needs to Know. Dr charf Stein this afternoon, joins us 0:08:24.240 --> 0:08:27.320 on the phone from Philadelphia. Dr Charfstein, It's always great 0:08:27.360 --> 0:08:29.320 to get you on the program. Anyone who reads this 0:08:29.360 --> 0:08:33.319 headline would say, Okay, that's just because of COVID, but 0:08:33.520 --> 0:08:37.040 you actually arguing your peace that life expectancy would have 0:08:37.080 --> 0:08:40.520 gone down even if we didn't have the excess deaths 0:08:40.559 --> 0:08:43.400 that were caused by COVID. What's going on. Well, it 0:08:43.440 --> 0:08:47.480 turns out life expectancy peaked in the United States and 0:08:47.480 --> 0:08:51.040 and it's been stagnating and even declining a little bit 0:08:51.520 --> 0:08:56.640 since then, even before the pandemic. UM. The pandemic obviously 0:08:57.000 --> 0:09:00.080 is the major reason for that shocking decline, which is 0:09:00.160 --> 0:09:03.480 the largest decline in life expecancy since World War One, 0:09:04.200 --> 0:09:07.120 over a hundred years ago. UM. But it's not the 0:09:07.160 --> 0:09:10.840 only cause. Another major cause are overdoses. More than a 0:09:10.920 --> 0:09:15.080 hundred thousand Americans now dying as fatal overdoses. That's double 0:09:15.440 --> 0:09:18.559 um what it was just a few years ago. UM. 0:09:18.640 --> 0:09:21.120 And then on top of that, we see a significant 0:09:21.120 --> 0:09:26.120 increases in gun related suicides and homicide, as well as 0:09:26.440 --> 0:09:31.960 motor vehicle crashes, which are up like since. So there 0:09:32.000 --> 0:09:35.160 are multiple causes, but what they do have in common 0:09:35.400 --> 0:09:38.760 is that they are preventable. UM. A lot of these 0:09:38.800 --> 0:09:41.640 deaths can be prevented if we take some basic steps 0:09:41.640 --> 0:09:44.200 which actually have a lot of support. And forgive me, 0:09:44.320 --> 0:09:47.559 you're right, I've misread the largest since World War Two, 0:09:47.600 --> 0:09:51.160 that two point seven years off our life expect expectancy 0:09:51.240 --> 0:09:54.520 since nineteen very very significant. You know. One of the 0:09:54.600 --> 0:09:57.839 things that I've done some work on And recently when 0:09:57.840 --> 0:10:02.960 the u n UM in town and the fall, we 0:10:03.000 --> 0:10:06.840 did a gathering to talk about noncommunicable diseases. You know, 0:10:07.200 --> 0:10:10.000 so this is something you cover too, and we're talking 0:10:10.040 --> 0:10:14.920 about things like diabetes, strokes, heart disease. UM. This is 0:10:15.160 --> 0:10:17.679 really the leading killer in so many different countries, and 0:10:17.679 --> 0:10:19.200 I feel like we all just kind of well, yeah, 0:10:19.240 --> 0:10:21.920 that's a part of life, but it doesn't have to be, 0:10:22.000 --> 0:10:27.760 does it. Well, Um, there are absolutely ways to reduce 0:10:27.880 --> 0:10:33.600 premature deaths from cardiovasc disease, diabetes, and other noncommunicable diseases. UM. 0:10:33.720 --> 0:10:36.920 In the report, we talk about the value of controlling 0:10:36.960 --> 0:10:39.880 salt intake, and most of the salt we take in 0:10:40.120 --> 0:10:42.000 is already in our food, it's not the salt we 0:10:42.080 --> 0:10:44.760 put on with the salt shaker and getting the salt 0:10:44.800 --> 0:10:48.280 down and that food could make a big difference. I 0:10:48.320 --> 0:10:52.679 think it's estimated saving fifty lines a year. UM. That's 0:10:52.720 --> 0:10:59.200 my understanding. So it's UM, it's really UM important not 0:10:59.320 --> 0:11:02.360 just to think of it as you know, eat healthy, 0:11:02.400 --> 0:11:04.959 but how do we get healthy food to ourselves and 0:11:05.040 --> 0:11:09.360 to other people so we can We've covered food. I 0:11:09.400 --> 0:11:11.800 want to go to overdoses. You're the co author of 0:11:11.840 --> 0:11:14.000 the opioid epidemic. What everyone needs to know. We know 0:11:14.040 --> 0:11:16.920 that over the last few years, opioid overdoses here in 0:11:16.920 --> 0:11:21.160 the United States of skyrocketed. UM what is the best 0:11:21.160 --> 0:11:26.040 way to address this? So I think if to start 0:11:26.160 --> 0:11:29.960 with what we know and what we know work and 0:11:30.080 --> 0:11:34.240 one of the most effective treatments for opioid use disorder 0:11:34.679 --> 0:11:39.040 our medications like methodone and bupanorpine. They reduced the chance 0:11:39.080 --> 0:11:42.040 of death from any cause. Somewhere on the order of 0:11:43.440 --> 0:11:46.240 these medications. Forgive me, but are these medications that people 0:11:46.679 --> 0:11:50.680 take if they are unconscious like a what um you 0:11:50.720 --> 0:11:53.439 know in through their nose or these medications of it 0:11:53.559 --> 0:11:57.320 is not the lockdone is what is? What is resuscitates you. 0:11:58.040 --> 0:12:01.400 But then the problem is if you still have addiction, 0:12:01.440 --> 0:12:03.960 if you're still addicted, it is quite likely that you 0:12:04.000 --> 0:12:08.800 will go back to um using opioids because that is 0:12:08.800 --> 0:12:11.719 what your brain is really compelling you to do. So 0:12:11.960 --> 0:12:15.920 what U A pupernorphine and methodone do is really addressed 0:12:15.960 --> 0:12:20.559 that craving and people say, aha, I can be myself again. 0:12:20.679 --> 0:12:24.160 I remember one person who we interviewed. He said, I 0:12:24.200 --> 0:12:27.080 felt like I was married to heroin until I got 0:12:27.080 --> 0:12:29.480 on treatment with methodone and then I could get a divorce. 0:12:29.600 --> 0:12:32.400 I thought only suicide would be my own. That was 0:12:32.440 --> 0:12:35.280 the only way to get away. But it really addresses 0:12:35.400 --> 0:12:38.680 the problem in the brain from addiction, really helps people 0:12:39.200 --> 0:12:43.320 put their lives back together and dramatically reduces the risk 0:12:43.679 --> 0:12:47.120 of overdose deaths. And unfortunately, if you were then one 0:12:47.120 --> 0:12:49.520 in five people with opius used to sort of actually 0:12:49.520 --> 0:12:53.160 get these medicines, many places don't offer them. Many emergency 0:12:53.160 --> 0:12:57.360 departments to fight evidence that starting treatment in the emergency 0:12:57.360 --> 0:13:01.360 department will double the success staying in treetment it one month, 0:13:01.920 --> 0:13:04.800 and that was a very well designed, randomized controlled child. 0:13:04.840 --> 0:13:07.959 Despite that evidence, a lot of places don't offer it. 0:13:08.040 --> 0:13:09.920 So we say, look, let's make that the standard of 0:13:10.000 --> 0:13:13.880 care not just an emergency department, but also in jails 0:13:13.880 --> 0:13:16.880 and prisons, where people can get started on treatment and 0:13:16.960 --> 0:13:20.120 not only dramatically reduced the chance they'll die when they 0:13:20.200 --> 0:13:23.760 leave detention, but also dramatically reduced the chance they'll commit 0:13:23.840 --> 0:13:27.199 another crime associated very clearly with lower risit of it. 0:13:27.520 --> 0:13:30.560 Can we talk about gun shootings and full transparency. We 0:13:30.600 --> 0:13:33.840 know Michael R. Bloomberg very dominant when it comes to 0:13:33.960 --> 0:13:37.600 gun violence prevention, and he established every Town for Gun Safety, 0:13:37.600 --> 0:13:41.959 the largest advocacy group back in and has donated money 0:13:41.960 --> 0:13:44.640 to it. Of course. Michael Bloomberg, the founder of Bloomberg 0:13:44.720 --> 0:13:47.840 LP and Bloomberg Philanthropies. But gun shootings, it's kind of 0:13:47.880 --> 0:13:50.400 almost sad that I don't know that we're getting used 0:13:50.440 --> 0:13:53.360 to it, but it just feels like gun shootings are very, 0:13:53.440 --> 0:13:56.720 very commonplace in the United States. That's another big reason 0:13:56.760 --> 0:14:02.080 why life expectancy has gone down. That's right, forty seven 0:14:02.120 --> 0:14:06.640 thousand gun related suicides and homicides UM and UH, they 0:14:06.679 --> 0:14:10.760 are preventable, and there are particular policies that really do work, 0:14:11.000 --> 0:14:14.000 and some of them have been adopted by states across 0:14:14.040 --> 0:14:18.040 the political spectrum. I remember after the Parkland shooting. UM, 0:14:18.080 --> 0:14:20.960 there was a lot of cynicism. People said, well, we've 0:14:21.000 --> 0:14:23.800 seen this movie before, nothing's going to change. But those 0:14:23.840 --> 0:14:26.240 young people got involved, and before you know it, a 0:14:26.640 --> 0:14:29.800 very red state, Florida pass the law called Extreme Risk 0:14:29.880 --> 0:14:35.520 Protection Orders, basically making it possible for people to um 0:14:35.720 --> 0:14:40.360 temporarily lose access to their guns if they're behaving dangerously 0:14:40.560 --> 0:14:43.040 and are a risk of themselves or others. And that 0:14:43.160 --> 0:14:46.720 was passed in Florida, and those laws indicates for every 0:14:47.240 --> 0:14:49.960 evidence so far, for every ten to twenty of those 0:14:50.080 --> 0:14:54.160 orders issued in temporary removals of guns happening, a suicide 0:14:54.200 --> 0:14:58.120 is prevented. And there are many examples of people who 0:14:58.240 --> 0:15:02.400 were um potentially going to kill someone else or even 0:15:02.440 --> 0:15:07.760 mass shootings whom this was a tool that kept everybody safe. Um. 0:15:07.920 --> 0:15:10.600 Those laws are in nineteen states, in the District of Columbia. 0:15:10.640 --> 0:15:13.560 Now our report says, let's let's put them everywhere. And 0:15:13.560 --> 0:15:17.160 in fact, Congress in its incredible you know gun legislation. 0:15:17.200 --> 0:15:19.480 I say incredible because people didn't think anything with hath 0:15:19.840 --> 0:15:23.040 actually provided money to help implement these laws, and good 0:15:23.120 --> 0:15:26.040 implementation of these laws where people know how to use them, 0:15:26.160 --> 0:15:30.160 really matters in preventing those suicides and homicides. The other 0:15:30.240 --> 0:15:32.800 policy that we write about has a lot of evidence 0:15:32.840 --> 0:15:37.480 behind that, and that's requiring a permit to get a firearm. 0:15:37.560 --> 0:15:40.000 Um it's called permits to purchase. And those laws are 0:15:40.040 --> 0:15:44.400 associated with fewer suicides, fewer homicides, and fewer mass shodes. 0:15:45.400 --> 0:15:49.440 What about when it comes to policies around driving, because 0:15:49.480 --> 0:15:52.280 motor vehicle deaths are another reason why we see a 0:15:52.320 --> 0:15:55.600 decline in life expectancy. You argue that these are preventable. 0:15:56.080 --> 0:16:01.320 How do cities and states prevent these? Yeah, they they 0:16:01.720 --> 0:16:05.720 they really are preventable, and there are different kinds of strategies. 0:16:05.840 --> 0:16:08.120 One of them that we mentioned in the report is 0:16:08.800 --> 0:16:14.600 additional technology to keep people who are um inebriated from driving. 0:16:14.760 --> 0:16:18.520 You know, reducing drunk driving UM is really important because 0:16:18.520 --> 0:16:22.040 it's responsible for so many deaths on the road. And 0:16:22.280 --> 0:16:26.200 right now there is um work to create new technology 0:16:26.240 --> 0:16:29.640 and cars that keeps people from driving who are drunk. 0:16:29.760 --> 0:16:31.800 And if if people can roll up their sleeves and 0:16:31.840 --> 0:16:34.760 get that technology to work, that could be very impactful. 0:16:34.880 --> 0:16:37.680 The other kind of solution we talked about is redesigned 0:16:38.120 --> 0:16:41.360 looking for where those crashes are happening. You know, when 0:16:41.360 --> 0:16:46.000 you see multiple little memorials on a particular corner, someone 0:16:46.040 --> 0:16:48.840 has to ask, you know, or a particular bend in 0:16:48.840 --> 0:16:52.320 the road, like is something wrong with the road? You know? 0:16:52.480 --> 0:16:56.520 And when you redesign to make things safe for pedestrians, 0:16:56.560 --> 0:16:59.680 safer for bicyclists, then you actually do see if you 0:16:59.760 --> 0:17:03.480 are motor vehicle related fatalities, and that can be a 0:17:03.520 --> 0:17:06.840 real strategy for reducing seemed that and I should be 0:17:06.880 --> 0:17:11.080 again full disclosure that Bloomberg Philanthropies has also been working 0:17:11.119 --> 0:17:14.240 to save lives and reduced industries injuries, I should say, 0:17:14.240 --> 0:17:17.119 from traffic crashes. Um. And they've been doing this around 0:17:17.200 --> 0:17:19.639 the world. Dr josh H. Charstein, thank you so much. 0:17:19.680 --> 0:17:22.320 Fi Stein for public health and practice and community engagement 0:17:22.320 --> 0:17:26.560 at John's Hopkins Bloomberg School of Public Health. He is 0:17:26.680 --> 0:17:30.520 also director of the Bloomberg American Health Initiative, also at 0:17:30.600 --> 0:17:34.560 Johns Hopkins. Joining us on the phone in Philadelphia, you're 0:17:34.600 --> 0:17:38.560 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:17:38.640 --> 0:17:42.400 Quick Takes Tim Stinovic on Bloomberg Radio. The new Wisha 0:17:42.440 --> 0:17:45.359 Bloomberg Business Week is out in this week's issue has 0:17:45.359 --> 0:17:47.680 at least a bit of good news for readers and listeners. 0:17:47.760 --> 0:17:51.119 It's the ninth annual Good Business issue, featuring subjects from 0:17:51.160 --> 0:17:54.879 tackling inequality to saving the planet with more sustainable practices. 0:17:55.040 --> 0:17:58.639 Bloomberg Business Week Solutions and Strategy Senior Editor Rebecca Penty 0:17:58.720 --> 0:18:02.679 oversees the issue. She joined us on the phone from London. Rebecca, 0:18:02.680 --> 0:18:03.960 I want to get to some of the stories in 0:18:04.000 --> 0:18:06.080 just a second, especially the cover story. It's close to 0:18:06.119 --> 0:18:09.800 my heart because I'm a subscriber to Misfits Market. But 0:18:10.200 --> 0:18:12.439 let's talk a little bit about your thinking behind the 0:18:12.480 --> 0:18:16.320 issue and how you approach it this year. Yeah, So, 0:18:16.359 --> 0:18:19.639 I think every year we're we're looking for uplifting stories 0:18:19.680 --> 0:18:22.520 to tell about how business can be a force for 0:18:22.640 --> 0:18:25.960 good in the world, um, which which isn't always something 0:18:26.000 --> 0:18:28.119 people think about. I mean often times people think that 0:18:28.359 --> 0:18:30.560 CEO is just out to make a quick book or 0:18:30.920 --> 0:18:34.639 you know, thinking about shareholder returns as being the b 0:18:34.840 --> 0:18:38.400 l end All. And I think this year our issue 0:18:38.520 --> 0:18:42.200 is landing at a time that's just perfect because we've 0:18:42.240 --> 0:18:45.040 got inflation throwing, We've got you know, job cuts that 0:18:45.040 --> 0:18:48.000 are starting to trickle through, and we've got some skepticism 0:18:48.000 --> 0:18:52.760 out there about E s G investing and most recently, 0:18:53.440 --> 0:18:56.920 you know, whether CEO philanthropists really are all they're cracked 0:18:57.000 --> 0:18:59.920 up to be, you know, the case of STX crumbling 0:19:00.160 --> 0:19:05.960 and sambankment freeds, effective altruism movement, um, you know, really 0:19:06.000 --> 0:19:10.160 becoming changed. So I think the issue is really timed 0:19:10.240 --> 0:19:15.919 well in providing readers with some uplifting stories about people 0:19:16.000 --> 0:19:20.160 about leaders who actually are doing some really positive work 0:19:20.160 --> 0:19:22.880 and deserves the attention. All right, Well, let's talk about 0:19:22.920 --> 0:19:24.960 one of those leaders, and that is the leader at 0:19:25.000 --> 0:19:27.600 Misfits Market, and that is the cover story tell us 0:19:27.600 --> 0:19:30.080 about this. I'm not familiar with him, but Tim says 0:19:30.080 --> 0:19:32.040 he's a pretty active I tell you, I got to 0:19:32.080 --> 0:19:34.960 tell you, Rebecca, I was exactly the person you described 0:19:34.960 --> 0:19:38.320 in this story. We didn't subscribe until lockdown hit and 0:19:38.440 --> 0:19:41.480 that's when we know thanks to the story, uh, Misfits 0:19:41.480 --> 0:19:44.960 went into overdrive. And I remember getting an email from 0:19:44.960 --> 0:19:47.960 them saying, Hey, you're not the only one. We are overwhelmed. 0:19:48.080 --> 0:19:49.560 You're on a wait list, but we'll try to get 0:19:49.600 --> 0:19:52.280 you in. I think that's when a lot of people 0:19:52.320 --> 0:19:55.200 started subscribing to online groceries. It's the same for me, 0:19:55.320 --> 0:19:58.440 you know, was when I when I started as well 0:19:58.520 --> 0:20:01.600 in London. And this is a really fun story about 0:20:02.040 --> 0:20:05.119 you know, a founder who is now thirty years old. 0:20:05.400 --> 0:20:08.959 UM the son of immigrants from India, and you know, 0:20:09.040 --> 0:20:12.840 his parents taught him the value of not wasting food 0:20:13.080 --> 0:20:16.240 about you know, eating eating. One of the anecdotes is 0:20:16.280 --> 0:20:18.840 his parents would let him throw an apple away until 0:20:18.880 --> 0:20:22.320 he'd eaten all the flesh around the core. And so 0:20:22.359 --> 0:20:27.760 he started this Philadelphia based online grocer in and you 0:20:27.800 --> 0:20:32.480 know he was talking odd ball shaped fruit of fruits 0:20:32.480 --> 0:20:35.320 and vegetables, you know, things that read are too big 0:20:35.560 --> 0:20:39.840 or odd shaped that the grocery stores wouldn't sell. UM 0:20:39.880 --> 0:20:42.399 in his living room with his apartment that he shared 0:20:42.440 --> 0:20:45.560 with his future wife, and it really grew from there. 0:20:45.640 --> 0:20:48.880 And soft Bank as an investor, they've got and he's 0:20:48.880 --> 0:20:52.119 got five million adventure capital funding and he's taken this 0:20:52.240 --> 0:20:55.000 thing national and that means, you know, a lot of 0:20:55.000 --> 0:20:57.760 growing pains, a lot of trying to sort out how 0:20:57.800 --> 0:21:00.320 does he stick to that mission of providing people with 0:21:00.560 --> 0:21:05.200 organic you know, UM produce, trying to trying to keep 0:21:05.480 --> 0:21:09.320 food out of the trash, UM with also trying to 0:21:09.359 --> 0:21:14.320 meet that those nationally sourcing all of the supply and 0:21:14.320 --> 0:21:18.000 and providing customers with things that they want because people 0:21:18.000 --> 0:21:20.000 are counting on being able to order what they want 0:21:20.000 --> 0:21:21.920 when they want, and that doesn't always line up with 0:21:22.480 --> 0:21:26.080 UM dealing with food that would otherwise end up in waste. Rebecca, 0:21:26.080 --> 0:21:27.399 as we said, this is one of the stories that 0:21:27.400 --> 0:21:30.520 makes up the cover, if you will, in the cover 0:21:30.640 --> 0:21:32.840 theme of good business. But I do wonder, you know, 0:21:32.880 --> 0:21:35.440 when you talk about misfits, you know there's lots of 0:21:35.480 --> 0:21:38.199 transparency and it does look like. This is truly when 0:21:38.240 --> 0:21:40.440 we think what maybe E. S G should be, this 0:21:40.520 --> 0:21:42.720 is what it kind of you would think it would 0:21:42.720 --> 0:21:46.040 look like. Having said that, is the business sustainable? Is 0:21:46.040 --> 0:21:49.600 it viable? Because it sounds like they're growing like crazy. 0:21:50.200 --> 0:21:54.080 I think that's the big question that the story isn't 0:21:54.160 --> 0:21:56.280 quite able to answer because they're just in the middle 0:21:56.320 --> 0:21:58.480 of scaling up. So, I mean, I think some of 0:21:58.480 --> 0:22:01.159 the risks that we point out is that they're investing 0:22:01.240 --> 0:22:07.320 a lot, I mean the capital investment in terms of facilities, technology, people, 0:22:07.880 --> 0:22:11.120 I mean, just investing in relationships with all their suppliers, 0:22:11.680 --> 0:22:17.199 um and and it's a it's a famously scrappy difficult 0:22:17.280 --> 0:22:20.280 space to crack because if you're going you know, if 0:22:20.320 --> 0:22:22.920 you're going into the very urban areas, then it makes 0:22:23.480 --> 0:22:26.240 it's easy. But if you're going to rural places, I mean, 0:22:26.320 --> 0:22:30.080 the CEO acknowledges that they're losing money in some of 0:22:30.119 --> 0:22:32.680 their roots in order to just gain those customers. So 0:22:33.080 --> 0:22:36.000 it's certainly a risky bet. And we don't have all 0:22:36.040 --> 0:22:38.160 the information because of course they're not going to share 0:22:38.200 --> 0:22:40.560 everything with us, But I think it's um you know, 0:22:40.640 --> 0:22:44.040 and I think also it's disclosing that not every single 0:22:44.040 --> 0:22:46.280