WEBVTT - Single Best Idea with Tom Keene: Chris Whalen & Steve Auth

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

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<v Speaker 2>Single best idea, which is visit Houston.

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<v Speaker 3>Just got back from a wonderful moment with the Houston

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<v Speaker 3>CFA Society, their celebration their seventieth anniversary of Financial analysis,

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<v Speaker 3>and of course all the bustling energy and medical businesses

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<v Speaker 3>of Houston. A much much more extraordinary flying out of Iah,

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<v Speaker 3>the Houston Airport, the Bush Airport, just you see the

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<v Speaker 3>warehouse and distribution juggernaut that we in the East never see.

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<v Speaker 3>Absolutely extraordinary. And that goes to what I'm really focused

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<v Speaker 3>on now and in the coming weeks, which is the

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<v Speaker 3>supply supply line study of our trade dynamics. Mister Besson

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<v Speaker 3>and mister Kreer had a press conference today talk and

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<v Speaker 3>alluding to that with China a bit, but I think

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<v Speaker 3>going forward, supply line dynamics will be something really to

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<v Speaker 3>talk about. Really interesting day on the show. Christopher Whalen

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<v Speaker 3>joined us from whalan Global, and he's out with his

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<v Speaker 3>second edition of his book, Inflated. It's a musty of

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<v Speaker 3>sprawling history of the American financial system. Here's Chris Whalen

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<v Speaker 3>on the moment at hand.

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<v Speaker 1>It's almost like we're back to December twenty eighteen when

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<v Speaker 1>Jerome Powell almost ran the ship aground. You recall they

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<v Speaker 1>pivoted very quickly in January nineteen and started easing. That's

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<v Speaker 1>when they went to this ample reserve policy that they've

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<v Speaker 1>had since then. And I think that what we're worried

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<v Speaker 1>about is that the model that the FED uses to

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<v Speaker 1>judge whether liquidity is adequate or not is based on GDP,

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<v Speaker 1>which has nothing to do with anything. Liquidity is highly compartmentalized,

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<v Speaker 1>does not flow one way and another, so you really

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<v Speaker 1>don't know until there's not enough. Chris, I think that's

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<v Speaker 1>where we are today.

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<v Speaker 3>Chris Whalen, we're gonna get him in the studio and

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<v Speaker 3>celebration of his new book, Inflated as well. Stephen off

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<v Speaker 3>with us today with Federated hermy as we talked to

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<v Speaker 3>him about this market. All the bank results coming in

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<v Speaker 3>so good. Allison Williams, thank you so much for careful

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<v Speaker 3>analysis from Bloomberg Intelligence here of Federated on our bull market.

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<v Speaker 4>It's just set up tom right now in a very

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<v Speaker 4>attractive way these stocks. And we'd even lean into the

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<v Speaker 4>regional regional banks because they have not fully participated yet

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<v Speaker 4>and there's catch up trade there. But you know, you've

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<v Speaker 4>got like a perfect world here. You know, the yeal

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<v Speaker 4>curve is steepening. That's always good, particularly for the regional banks.

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<v Speaker 4>The economy is reaccelerating. You got Scott Bessetting Company focused

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<v Speaker 4>like laser beams on lowering the mortgage rate, which is

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<v Speaker 4>artificially high relative to the tenure. They're going to do that.

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<v Speaker 4>The housing sector takes off. That really helps the regional banks.

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<v Speaker 4>So you've got loan growth improving. You've got all this

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<v Speaker 4>inbound investment happening that requires financing.

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<v Speaker 2>That's more loan.

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<v Speaker 4>Growth, and the big banks, of course, as we're seeing,

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<v Speaker 4>have m and a animal spirits picking up IPOs.

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<v Speaker 1>It's just like.

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<v Speaker 4>Everything at once against a backdrop where these stocks are.

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<v Speaker 4>You know, you can make the case are cheaply valued.

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<v Speaker 4>They're certainly cheaply valued versus the market, and even on

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<v Speaker 4>a relative historical basis, that cheapness is still pretty reasonable.

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<v Speaker 2>So it's a kind of perfect storm. Steve author Federated,

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<v Speaker 2>I would point out that with his analysis, you don't

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<v Speaker 2>get to participate unless you're in the market before the event.

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<v Speaker 2>There's not enough discussion of that.

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<v Speaker 3>Outh Chivarone and the team at Federated and said, you've

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<v Speaker 3>got to play, you've got to be invested for moments

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<v Speaker 3>like this. Got much more Coming up again tomorrow, the

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<v Speaker 3>conversation with Governor Waller. That'll be in the nine o'clock

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<v Speaker 3>hour Eastern time. On podcasts, We're on an Apple, on Spotify,

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<v Speaker 3>on YouTube podcasts. It's single best idea