WEBVTT - Crowdfunded Loans Helping Small Business Grow 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney. Alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.560 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.720 at Bloomberg dot com slash podcast. We have been hearing 0:00:22.840 --> 0:00:27.680 a lot about helping out businesses, small businesses, about helping 0:00:27.720 --> 0:00:32.480 out marginalized businesses, women and minorities over the past couple 0:00:32.479 --> 0:00:37.600 of days from the big gigantic bank CEOs on Capitol Hill. UM. 0:00:37.640 --> 0:00:42.879 But they typically come out with surprisingly small numbers. Really, UM, 0:00:43.440 --> 0:00:45.720 I guess Goldman Sachs is a really is a real exception. 0:00:45.760 --> 0:00:48.760 They've been doing this ten thousand small business program for 0:00:48.760 --> 0:00:51.960 our decade now. But Chris Saklakis joins us right now. 0:00:52.000 --> 0:00:56.600 He's the CEO of a global nonprofit called Kiva, which 0:00:56.720 --> 0:01:02.400 is really a micro financing business that aims at UM 0:01:02.640 --> 0:01:10.360 marginalized business owners UM to raise and disperse crowdfunded loans. UM. Chris, 0:01:10.400 --> 0:01:12.399 welcome to the program. Thanks for joining us. What a 0:01:12.480 --> 0:01:14.679 time to be in this business. How did you get 0:01:14.680 --> 0:01:18.000 into this because I know you came from the famous 0:01:18.040 --> 0:01:24.560 online wine platform Vivino. Yeah. So I've been at Kiva 0:01:24.680 --> 0:01:28.720 precisely one month in two days, so I'm very to it. 0:01:28.800 --> 0:01:34.560 But yeah, exactly so. Uh what I what I decided 0:01:34.600 --> 0:01:37.520 when I left Vino was that I really liked technology 0:01:37.600 --> 0:01:40.479 and online marketplaces, but I wanted I wanted to put 0:01:40.520 --> 0:01:44.120 my expertise to better use, and I wanted to I 0:01:44.160 --> 0:01:46.000 wanted to fulfill two things. One was to be a 0:01:46.040 --> 0:01:49.120 positive role model for my sons, who are both teenagers, 0:01:49.720 --> 0:01:52.160 and to work in the organization that actually has a 0:01:52.160 --> 0:01:56.040 positive impact on people's lives. And so when Civa came along, 0:01:56.720 --> 0:01:59.360 it was a perfect combination of those two things. We use. 0:02:00.040 --> 0:02:04.080 We Kiva used technology through an online marketplace kiva dot org, 0:02:04.520 --> 0:02:08.880 where lenders can come in UH and find information on 0:02:09.000 --> 0:02:12.080 borrowers in the United States and around the world and 0:02:12.200 --> 0:02:15.400 decide on how much they want to give as a loan, 0:02:15.520 --> 0:02:17.520 And they can give as little as twenty five dollars 0:02:18.040 --> 0:02:22.160 UH to fund a loan for someone in Cambodia who's 0:02:22.240 --> 0:02:25.520 trying to buy seed for a farm, or someone in 0:02:25.520 --> 0:02:30.960 the United States who's trying to establish a restaurant. So Chris, 0:02:31.040 --> 0:02:34.840 You know, this pandemic obviously has been hugely disruptive, disruptive 0:02:34.880 --> 0:02:39.440 to the entire planet, to the economics of the entire planet, 0:02:39.480 --> 0:02:44.240 and particularly on small businesses, minority businesses, things like that. 0:02:44.320 --> 0:02:48.440 So as you think about your company, your effort at Kiva, 0:02:48.480 --> 0:02:51.679 how do you expect your business to change maybe going 0:02:51.760 --> 0:02:53.920 forward as you probably interact with a lot of these 0:02:53.960 --> 0:02:58.920 small businesses that have been impacted, Well, a lot of 0:02:58.919 --> 0:03:01.120 what we're doing is continue knewing what we've done in 0:03:01.160 --> 0:03:04.800 the past. We we made some big shifts during COVID 0:03:04.880 --> 0:03:07.760 last year, but over the course of the fifteen year 0:03:07.919 --> 0:03:11.560 history of Kiva, we have funded over one point five 0:03:11.680 --> 0:03:16.280 billion dollars worth of loans to to nearly four million 0:03:16.320 --> 0:03:20.120 people in seventy seven countries, and roughly ten percent of 0:03:20.160 --> 0:03:22.760 what we've done over the last few years has gone 0:03:22.760 --> 0:03:26.440 to businesses in the United States. The people we target 0:03:26.960 --> 0:03:30.680 are people who traditionally aren't able to get loans. We 0:03:30.760 --> 0:03:33.040 call them the unbanked, the people who don't have access 0:03:33.040 --> 0:03:36.600 to financial services. And so as part of what we 0:03:36.640 --> 0:03:40.680 did with COVID, we were available, we were able to 0:03:40.800 --> 0:03:44.080 provide loans to people who would get rejected from other 0:03:44.120 --> 0:03:47.360 banks people who couldn't get p PP loans, and so 0:03:47.680 --> 0:03:52.040 very often those are minorities of black and Latin X 0:03:52.120 --> 0:03:56.360 business owners women. UM. In fact, the vast majority of 0:03:56.400 --> 0:03:59.240 the loans we do in the United States, UM are 0:03:59.360 --> 0:04:03.840 too are two women and two people of color and immigrants. Right. 0:04:03.840 --> 0:04:06.240 I mean, how many times have I been in a 0:04:06.320 --> 0:04:08.760 cab in New York City only to find out that 0:04:08.800 --> 0:04:12.400 my driver is actually was a doctor when he was 0:04:12.400 --> 0:04:16.000 working in Bulgaria or something crazy like that, UM, and 0:04:16.080 --> 0:04:18.800 just doesn't have any credit or any access to the 0:04:18.839 --> 0:04:23.080 financial system when he gets to the US. Yeah, that's right. 0:04:23.120 --> 0:04:25.240 So we we fund a lot of immigrants. Most of 0:04:25.279 --> 0:04:28.280 our funding goes to entrepreneurs, people who are starting businesses 0:04:28.400 --> 0:04:31.320 or who have businesses as who want to continue. And 0:04:31.440 --> 0:04:33.640 one of the reasons Kiva was so resonant for me 0:04:33.760 --> 0:04:36.720 is because my parents are immigrants. They immigrated from Greece. 0:04:37.080 --> 0:04:39.960 When my dad came here, he really had nothing. He 0:04:40.040 --> 0:04:42.960 started as a laborer in the steel mill. He eventually 0:04:43.000 --> 0:04:48.240 became an apprentice with an electrician, became qualified electricians, started 0:04:48.279 --> 0:04:51.960 his own electrical contracting business, and then started real listening 0:04:52.000 --> 0:04:54.640 to the development. But he couldn't have started that business 0:04:54.760 --> 0:04:57.400 or done his real estate development without access to capital, 0:04:57.400 --> 0:05:00.320 without a loan. And so the loans that you give 0:05:00.400 --> 0:05:04.000 to small businesses with Kiva resonate with me because they 0:05:04.000 --> 0:05:06.880 go to entrepreneurs just like my dad. Chris gives a 0:05:06.880 --> 0:05:09.400 sense just briefly about thirty seconds, kind of the financial 0:05:09.440 --> 0:05:13.119 returns for the folks that do crowds fund these loans. 0:05:13.120 --> 0:05:16.080 How's how's it worked out. Yeah, So if you're a 0:05:16.160 --> 0:05:19.880 lender on Kiva, it's a zero interest, zero percent interest loan, 0:05:20.400 --> 0:05:24.880 but there's the repayment rate historically has been so if 0:05:24.880 --> 0:05:27.360 you put in a hundred dollars today, over the course 0:05:27.400 --> 0:05:29.800 of the next two years, you'll get ninety six dollars back, 0:05:30.080 --> 0:05:32.760 and then you can re lend that money if you want. 0:05:32.960 --> 0:05:37.320 So relative to a donation, Uh, this is this is 0:05:37.360 --> 0:05:39.080 a loan. The money comes back and then you can 0:05:39.120 --> 0:05:41.440 re lend it. If you keep the money in the 0:05:41.520 --> 0:05:43.760 Kiva system for a period of four or five years, 0:05:43.760 --> 0:05:46.799 that hundred dollars could result in five hundred, six hundred 0:05:46.839 --> 0:05:50.640 dollars worth of loans back to people who needed That's 0:05:50.760 --> 0:05:52.440 very ingenious. I was trying to think about how the 0:05:52.520 --> 0:05:54.719 economics of that work, and you should do a reverse 0:05:54.760 --> 0:05:57.120 repo facility. You know, the FED got I think four 0:05:57.480 --> 0:06:01.120 eight six billion dollars at zero present yesterday from like 0:06:01.240 --> 0:06:05.520 fifty banks. Um. No, it's a fascinating business, and yours 0:06:05.640 --> 0:06:08.320 is I think a really interesting story. Chris. So, it's great, 0:06:08.880 --> 0:06:12.200 um to have smart people like you doing this kind 0:06:12.240 --> 0:06:15.440 of good work to help. You know, other people out 0:06:15.440 --> 0:06:16.920 there just want to get a lug up, just need 0:06:16.960 --> 0:06:20.359 to get into the system. Chris Sokolochus, there is the 0:06:20.480 --> 0:06:28.480 CEO of Kiva. This is Bloomberg. Are bringing Laurence sour 0:06:28.640 --> 0:06:31.919 right now, Associate Professor of Emergency Medicine at Johns Hopkins 0:06:32.000 --> 0:06:36.120 School of Medicine, And Lauren, I got a question. I've 0:06:36.160 --> 0:06:40.360 always thought about this, and I think because of the pandemic, 0:06:40.520 --> 0:06:42.640 I finally know the answer, but I want to hear 0:06:42.640 --> 0:06:45.880 it from you. You know, there've been anti vaxers around forever, 0:06:46.520 --> 0:06:49.360 and I always thought, like, who cares if their kids 0:06:49.560 --> 0:06:53.080 aren't vaccinated? As long as my kids are. Now, the 0:06:53.120 --> 0:06:56.000 same question is coming up in terms of COVID, like 0:06:56.520 --> 0:06:59.880 if of the public doesn't get vaccinated, does it matter 0:07:00.000 --> 0:07:04.000 to the six of us that does. Yeah, I think 0:07:04.520 --> 0:07:06.479 I definitely think it matters because I think we have 0:07:06.560 --> 0:07:10.440 this sort of social contract and depending on the thresholds 0:07:10.440 --> 0:07:13.480 that people that people are looking at, it changes how 0:07:13.520 --> 0:07:15.320 safe it is to reopen and be in public, And 0:07:15.440 --> 0:07:17.520 especially with the disease like this, where we don't actually 0:07:17.560 --> 0:07:20.080 know what reinfection is going to look like and what 0:07:20.160 --> 0:07:24.360 the potential future threats are UM, the more people getting 0:07:24.400 --> 0:07:27.480 vaccinated can only be better. When you think about people 0:07:27.560 --> 0:07:30.800 who are sort of anti vacts and UM, especially in 0:07:30.840 --> 0:07:34.679 the pediatric population, they're making decisions for kids who don't 0:07:34.720 --> 0:07:37.760 have sort of a say in that process, and on 0:07:37.840 --> 0:07:42.640 top of that before they were born. Yeah, that's true. UM, 0:07:42.680 --> 0:07:45.640 but there are kids who and kids and teachers and 0:07:45.760 --> 0:07:48.360 parents and family members of those kids who are not 0:07:48.440 --> 0:07:51.520 vaccinated who can't get vaccinated for various reasons. They may 0:07:51.560 --> 0:07:54.000 have a vaccine allergy, or they may have an immune 0:07:54.040 --> 0:07:57.880 compromise situation or UM. You know, there's several reasons why 0:07:57.920 --> 0:08:00.200 people may not be able to get vaccinated, and so 0:08:00.240 --> 0:08:02.040 then you're putting those people at risk. So that's a 0:08:02.040 --> 0:08:04.560 good point. In fact, I read a story I think 0:08:04.680 --> 0:08:07.560 maybe it was in the Times about UM. For example, 0:08:07.640 --> 0:08:13.880 people who have received organ transplants UM aren't really aren't 0:08:13.880 --> 0:08:15.920 able to be vaccinated or the vaccine doesn't work as 0:08:15.920 --> 0:08:18.480 well for them. My theory had been this, Lauren, I thought, 0:08:18.480 --> 0:08:20.240 you know, what do I care if somebody in the 0:08:20.280 --> 0:08:23.400 bar isn't vaccinated and has COVID. As long as I am, 0:08:23.600 --> 0:08:26.080 I'm not going to get it. But what I was 0:08:26.120 --> 0:08:28.640 thinking is maybe if too much, if too many people 0:08:28.640 --> 0:08:30.760 don't get vaccinated, then the virus lives on and it 0:08:30.840 --> 0:08:33.920 you takes into something even crazier, and then it overtakes 0:08:33.920 --> 0:08:37.680 my vaccine power. Yeah, I think that's always a risk. 0:08:37.720 --> 0:08:40.480 I mean, mutations, variants are are going to continue to 0:08:40.520 --> 0:08:44.520 be a risk and um, and you could have a 0:08:44.600 --> 0:08:47.559 situation like we don't know about sterilizing immunity as as 0:08:47.600 --> 0:08:50.640 much as we want to yet, right, So you could 0:08:50.640 --> 0:08:52.559 have a situation where you're on the tail end of 0:08:52.600 --> 0:08:55.319 meeting another vaccination, you get a low grade infection from 0:08:55.360 --> 0:08:59.040 that person and and it does overtake your vaccine, or 0:08:59.240 --> 0:09:02.240 you take very low grade infection that you may not 0:09:02.280 --> 0:09:04.959 even know that you have to someone else. And so 0:09:05.000 --> 0:09:08.800 there's there's situations where this chain of events happens, putting 0:09:08.840 --> 0:09:11.520 people who have no choice in the matter at risk. 0:09:11.760 --> 0:09:14.760 And that's where we want to really target, UM, bringing 0:09:14.800 --> 0:09:17.760 people who are not interested currently to getting vaccinated to 0:09:17.800 --> 0:09:20.720 the table and say what's stopping you, what's holding you back? 0:09:20.800 --> 0:09:23.600 What can we do to support bringing you to the 0:09:23.679 --> 0:09:27.680 vaccine table. How about something that's maybe even I think simpler, 0:09:27.720 --> 0:09:31.160 which is simply masking Here in New York, so I 0:09:31.160 --> 0:09:33.040 guess we're we've had a week or two of you 0:09:33.040 --> 0:09:36.160 don't have to mask indoor? Uh In New Jersey. As 0:09:36.160 --> 0:09:39.040 of today where I live, you don't have to mask 0:09:39.120 --> 0:09:41.120 indoor and you can actually stand at a bar and 0:09:41.160 --> 0:09:44.280 have a drink. I think, God forbid. What are your thoughts, 0:09:44.679 --> 0:09:49.040 Lauren about masking indoors? Let's just let' let's assume the 0:09:49.040 --> 0:09:51.680 outdoors is you know, that's pretty clear, clear cut. But 0:09:51.679 --> 0:09:54.600 what do you think about indoors? Yeah? For me, I 0:09:54.640 --> 0:09:58.800 think the risk is still high enough. My personal opinion 0:09:58.880 --> 0:10:02.440 is that I would so mask indoors wherever possible. UM. 0:10:02.640 --> 0:10:06.800 I think in general, we've relaxed these indoor mask mandates 0:10:06.840 --> 0:10:09.960 too soon. We're getting really close, and I think everyone's 0:10:10.000 --> 0:10:12.280 just so excited to you know, quote unquote get back 0:10:12.280 --> 0:10:14.959 to normal that they're willing to let their guard down. 0:10:15.000 --> 0:10:17.000 And I think that is where we get into a 0:10:17.040 --> 0:10:20.400 little bit of a high risk situation, and and masking 0:10:20.559 --> 0:10:24.240 is not you know, it's it's not that hard to do, 0:10:24.559 --> 0:10:27.240 and it is a simple step that we can take 0:10:27.280 --> 0:10:30.280 to protect ourselves and protect those other people that we 0:10:30.280 --> 0:10:32.640 were just talking about, you know. And so for me, 0:10:32.720 --> 0:10:36.040 I would like to see the mask the masking continue indoors, 0:10:36.160 --> 0:10:39.040 especially in those more crowded locations, until we get to 0:10:39.080 --> 0:10:44.960 those higher vaccinated levels. You know. Um, we're finally starting 0:10:44.960 --> 0:10:48.400 to look at the most at the simplest possible explanation 0:10:48.480 --> 0:10:51.880 for how this virus um got started at a market 0:10:51.880 --> 0:10:55.679 in Wuhan, down the street from a coronavirus lab in Wuhan. 0:10:56.280 --> 0:11:00.840 But even if the quote unquote conspiracy area's proved true, 0:11:01.080 --> 0:11:03.640 does it really matter where it came from to the 0:11:03.679 --> 0:11:09.960 medical field? Do you need those details? No? I mean, 0:11:10.040 --> 0:11:12.680 I think I think it matters to some people, and 0:11:12.720 --> 0:11:16.200 I think there's always an interest in exploring origins, But 0:11:16.320 --> 0:11:18.160 I don't think we're going to get there with some 0:11:18.360 --> 0:11:22.840 targeted um exploration of whether or not this is a 0:11:22.880 --> 0:11:26.160 cover up, or whether or not the origins were because 0:11:26.160 --> 0:11:29.960 of some some purposeful or unintentional things that happened in 0:11:29.960 --> 0:11:33.520 a lab. You know that we don't need that information 0:11:33.720 --> 0:11:37.080 to improve our response the next time we have a pandemic. 0:11:37.160 --> 0:11:39.760 We don't need that information to take care of these patients. 0:11:40.080 --> 0:11:43.520 We don't need that information clearly to build vaccines, to 0:11:43.600 --> 0:11:47.400 build therapeutics. What we need is to focus those efforts 0:11:47.480 --> 0:11:49.760 on how we get out of this pandemic and how 0:11:49.880 --> 0:11:53.840 we move move the global health forward to be able 0:11:53.880 --> 0:11:55.920 to prepare for the next one. And that's not through 0:11:55.960 --> 0:11:59.520 an origins discussion. Lauren, thank you so much once again 0:11:59.559 --> 0:12:01.320 for join as you do every week, and we really 0:12:01.320 --> 0:12:04.280 appreciate your time. Laurence Sour, Social Professor of Emergency Medicine 0:12:04.320 --> 0:12:06.439 at Johns Hopkins School of Medicine. We should note that 0:12:06.440 --> 0:12:08.600 the Bloomberg School of Public Health is supported by Michael 0:12:08.640 --> 0:12:11.719 Are Bloomberg found Our, Bloomberg LP, Bloomberg Philanthropies, and this 0:12:11.880 --> 0:12:17.880 radio operation. Cities across the United States and the state 0:12:17.920 --> 0:12:22.040 of California, they're starting to make a case for local reparations. 0:12:22.440 --> 0:12:25.160 Are good. Folks at Bloomberg Business Week took a deep 0:12:25.200 --> 0:12:29.520 dive one of those cities. Susan Burfield. Burfield, Senior investigative 0:12:29.520 --> 0:12:32.640 reporter for Bloomberg Business Week, uh and also the author 0:12:32.720 --> 0:12:35.680 of The Hour of Fate, Theodore Roosevelt, JP Morgan, and 0:12:35.760 --> 0:12:39.400 the Battle to Transform American Capitalism. So thanks so much 0:12:39.400 --> 0:12:41.600 for joining us here. You guys took a look at 0:12:41.640 --> 0:12:45.160 this whole reparation's issue as it relates to a small 0:12:45.240 --> 0:12:49.480 town of Evanston, Illinois. What did you guys find? Yeah, 0:12:49.480 --> 0:12:52.439 so thanks so much for having me on. So Evanston, 0:12:52.559 --> 0:12:55.800 Illinois is um uh, as you said, a small city 0:12:55.920 --> 0:12:59.480 just north of Chicago, and UM, it has the distinction 0:12:59.600 --> 0:13:03.360 of being the first city in the US to offer 0:13:03.440 --> 0:13:08.680 reparations to its black residents, and UM, the first kind 0:13:08.679 --> 0:13:11.960 of effort that it's making, UM is to redress the 0:13:12.000 --> 0:13:17.280 housing discrimination UM that many black residents faced beginning as 0:13:17.320 --> 0:13:22.599 far back as nineteen nineteen. I'd say that I absolutely 0:13:22.640 --> 0:13:26.880 loved the story, Susan. It was really the kind of 0:13:26.960 --> 0:13:28.800 it was like a book you just can't put down. 0:13:28.880 --> 0:13:31.600 I was taking care of my baby and trying to 0:13:31.640 --> 0:13:33.880 feed her bottle, and I just I couldn't really do 0:13:33.960 --> 0:13:38.240 anything until I no, I mean, I just I I 0:13:38.440 --> 0:13:42.559 noticed that she couldn't distract me. I was. I found 0:13:42.559 --> 0:13:45.240 it really fascinating And at first, you know, it starts 0:13:45.240 --> 0:13:49.320 out really disturbing, because, Um, I was reading about Lucia's 0:13:49.320 --> 0:13:52.800 Sutton at the very beginning, and I was thinking, how 0:13:52.920 --> 0:13:56.320 is this possible, this kind of injustice in you know, 0:13:56.400 --> 0:14:00.360 the nineteen hundreds, that's my century. I could have imagine 0:14:00.360 --> 0:14:04.800 it happening in the eighteen hundreds. But it's just, Um, 0:14:04.840 --> 0:14:07.360 it's something everyone should read, even people who have been 0:14:07.480 --> 0:14:10.240 have become kind of numb to the social justice and 0:14:11.040 --> 0:14:14.560 the Congressman we're talking about woke capitalism. But when you 0:14:14.559 --> 0:14:18.959 read this, you can understand why it's worth fighting for. Um. 0:14:19.040 --> 0:14:23.560 The one thing I kept thinking to myself, Susan, is yes, 0:14:23.760 --> 0:14:26.680 you run into these real problems, especially on the local level, 0:14:26.680 --> 0:14:29.560 and you make this point in the story, if it's 0:14:29.600 --> 0:14:32.040 done on a federal level, it would be you'd have 0:14:32.160 --> 0:14:36.360 less you'd have fewer problems. Right. Yeah. Well, first of all, 0:14:36.440 --> 0:14:40.520 just thanks so much for the kind words about the story. UM. 0:14:40.520 --> 0:14:45.080 It was been a wonderful privilege really to be able 0:14:45.120 --> 0:14:47.560 to spend so much time on it, um and with 0:14:47.680 --> 0:14:50.960 people in Evanston, so um it kind of makes me 0:14:50.960 --> 0:14:55.360 want to move to Evanston. It's a beautiful place and 0:14:55.400 --> 0:14:57.320 they're good apparently good that they're good people. For the 0:14:57.320 --> 0:15:00.560 most part, right, they if they're taking this on, Yeah, 0:15:00.600 --> 0:15:03.080 they're trying to do the right thing. And you know, 0:15:03.440 --> 0:15:07.440 to your question, UM, you know, at the local level, UM, 0:15:07.440 --> 0:15:09.960 at it. You know, in a city like Evanston or 0:15:10.080 --> 0:15:13.760 in any city in the US, UM, there are always 0:15:13.800 --> 0:15:19.000 going to be different points of view about what reparations 0:15:19.160 --> 0:15:22.160 should look like at the local level, you know, and 0:15:22.240 --> 0:15:25.880 part of that is kind of what kind of discrimination 0:15:26.080 --> 0:15:31.760 or injustice to take on. First, how much money any 0:15:31.840 --> 0:15:35.920 city is going to be able, uh to to use 0:15:36.040 --> 0:15:38.680 to essentially you know, pay down the debt it owes 0:15:38.760 --> 0:15:42.360 to its black residents. UM. And you know, just the 0:15:42.480 --> 0:15:45.480 nature of city government or even state government. You know, 0:15:45.520 --> 0:15:49.880 there's UM lots of opportunities for people to comment, so 0:15:50.000 --> 0:15:52.880 you can hear very directly from lots of people. UM. 0:15:52.920 --> 0:15:56.600 And you know, at the national level, UM, there's been 0:15:57.240 --> 0:16:02.280 uh increasing MOMENTUM might say, UM ward the discussion. You know, 0:16:02.400 --> 0:16:05.400 so the cities are taking it many steps further than 0:16:05.440 --> 0:16:07.920 what's happening on the national level. But there is at 0:16:07.960 --> 0:16:11.040 least the discussion. You know, there is UM. There are 0:16:11.400 --> 0:16:17.240 studies that would help calculate how much reparations should be UM. 0:16:17.400 --> 0:16:21.320 And of course that's chillions of dollars, and in Evanston 0:16:21.400 --> 0:16:25.400 we're talking about millions of dollars. How does the process 0:16:25.480 --> 0:16:29.600 actually work if someone feels that they are due reparations, 0:16:30.120 --> 0:16:34.520 how's the process work? So in Evanston, UM, the first 0:16:34.920 --> 0:16:39.040 round of money, which is about four hundred thousand dollars 0:16:39.160 --> 0:16:41.840 UM and is going to be given out to recipients 0:16:41.880 --> 0:16:46.760 this summer. UH and essentially anyone who lived in Evanston, 0:16:46.880 --> 0:16:50.640 any black residents who lived in Evanston from nineteen nineteen 0:16:51.040 --> 0:16:54.840 to nineteen sixty nine UM. That's the year after the 0:16:54.840 --> 0:16:58.800 federal government passed the Fair Housing Act. So if you 0:16:59.120 --> 0:17:02.760 lived in evans Been during that time, you're eligible and 0:17:02.800 --> 0:17:07.399 you're given first priority. Second priority is to the descendants 0:17:07.440 --> 0:17:11.400 of those people, and third priority is to a resident 0:17:11.880 --> 0:17:16.360 who moved or lived in Evanston after that and can 0:17:16.359 --> 0:17:21.960 show that they faced discrimination. It's hard for me, UM 0:17:22.000 --> 0:17:24.879 to be flippant about this, because when you read about 0:17:25.000 --> 0:17:28.320 the Cannon family, the Simmons family, what happened to the 0:17:28.359 --> 0:17:32.800 Sutton family. UM, you just have to take it seriously. 0:17:32.920 --> 0:17:35.880 But being flippant is in my nature, and I want 0:17:35.920 --> 0:17:38.320 to say that it seems like the best thing you 0:17:38.320 --> 0:17:40.800 can do for social justice. If you visit Evanston is 0:17:40.840 --> 0:17:45.840 by weed, right, I mean because the first the money 0:17:45.880 --> 0:17:49.159 that they're getting comes from the three percent cannabis tax 0:17:49.320 --> 0:17:53.160 and they've only got one weed vendor in town. So 0:17:53.720 --> 0:17:56.119 if you do go there, stop by and get yourself 0:17:56.160 --> 0:17:59.199 a pre rolled joint or something. Yes, well you're not 0:17:59.280 --> 0:18:03.280 the only one. The Alderman as they're called, Derek City 0:18:03.280 --> 0:18:06.120 Council member UM who came up with the idea UM. 0:18:06.160 --> 0:18:08.440 She's no longer serving, but I spoke to her while 0:18:08.480 --> 0:18:11.000 she was still in office and her message was, you know, 0:18:11.080 --> 0:18:14.959 come to Evanston and pleased buy drugs. Robin Ruth Simmons 0:18:15.480 --> 0:18:18.600 was that it was the Alderman now, uh, well that 0:18:18.720 --> 0:18:21.679 was Anne Rainey. Robin Ruth Simmons though UM is the 0:18:21.680 --> 0:18:26.360 one who first proposed reparations UM idea UM and then 0:18:26.440 --> 0:18:29.840 you know, worked with some other city council members to 0:18:29.880 --> 0:18:32.400 help create it UM. And it was Anne Rainey who 0:18:32.400 --> 0:18:34.680 came up with the idea of using the money from 0:18:34.680 --> 0:18:37.800 this new tax, you know, money that was unclaimed UM 0:18:37.840 --> 0:18:40.840 that they calculated would bring in about a million dollars 0:18:40.880 --> 0:18:44.480 a year, and then they devoted UM the first ten 0:18:44.520 --> 0:18:47.600 million dollars UM to the program, and you know, maybe 0:18:47.600 --> 0:18:49.840 that will take ten years to pless maybe less well 0:18:49.880 --> 0:18:52.479 hopefully UM, well they can raise those taxes a little bit. 0:18:52.480 --> 0:18:54.040 I think everyone will be willing to pay a little 0:18:54.080 --> 0:18:56.679 bit more UM for their for a good weed. But 0:18:56.880 --> 0:18:59.080 I have to say now for you, as as senior 0:18:59.119 --> 0:19:02.800 investigative report or UM, you may not notice, but as 0:19:03.000 --> 0:19:06.000 for a regular person, the history that these people have discovered, 0:19:06.440 --> 0:19:10.040 the research that they've put in to to go back three, 0:19:10.200 --> 0:19:13.399 four or five generations and get you know, titles and 0:19:13.440 --> 0:19:16.920 deeds and the stories that they have the story just 0:19:16.960 --> 0:19:20.200 for that to me is worth it UM. I love 0:19:20.280 --> 0:19:23.200 the family history that that they have discovered that you've 0:19:23.240 --> 0:19:26.280 reported here. Susan, thanks so much for joining us UM. 0:19:26.320 --> 0:19:30.160 Susan Bearfield and Jordan Holman wrote the story first US 0:19:30.200 --> 0:19:37.959 City Too Back Reparations meets hard Reality. Now let's delve 0:19:38.119 --> 0:19:42.000 into crypto. I don't think we've mentioned bitcoin at all today. 0:19:42.400 --> 0:19:47.760 Paul or Doge or ether or Tether. Mike mcgloan joins 0:19:47.840 --> 0:19:53.680 US Commodities Strategists for Bloomberg Intelligence on crypto UM. I mean, 0:19:54.720 --> 0:19:57.639 the volatility has been amazing, but the lineup of guests 0:19:57.640 --> 0:20:01.240 that we've had, Mike has been insane of the last week. 0:20:01.440 --> 0:20:06.160 I have interviewed uh Nick Carter, who is a brilliant 0:20:06.520 --> 0:20:10.480 writer from Castle Island Ventures, Sam Bankman Freed, who is 0:20:10.800 --> 0:20:12.720 one of the richest people in America now and he's 0:20:12.720 --> 0:20:16.280 only twenty nine. It's got like forty billion dollars in 0:20:16.320 --> 0:20:20.760 crypto And Bobby Lee, who is a pioneer in the 0:20:20.840 --> 0:20:25.520 space UM. He started BTC China and now has a 0:20:25.600 --> 0:20:32.480 really cool UM hardware wallet out. Uh, Mike, what what 0:20:32.560 --> 0:20:35.960 are your what's your current thinking on bitcoin? Is? We've 0:20:36.000 --> 0:20:39.480 gone through these wild up and down swings. Is it 0:20:39.520 --> 0:20:41.760 gonna Is it here to stay? The volatility for right now? 0:20:41.760 --> 0:20:43.639 Are are we getting past it? Well? Hey, man, I 0:20:43.680 --> 0:20:46.520 appreciate you mentioned some very smart people that I list 0:20:46.560 --> 0:20:49.119 basically enjoyed those interviews, and I think the key thing 0:20:49.160 --> 0:20:51.000 to think about in cryptos is it's a bool market 0:20:51.080 --> 0:20:54.040 that's corrected. Got way too excited and I'm one of 0:20:54.080 --> 0:20:56.480 the people got suckered into. What really brought me and 0:20:56.600 --> 0:20:58.920 we thought it would continue up was when valtily dropped 0:20:59.400 --> 0:21:01.960 sixty dave out and bitcoin dropped to the lowest of 0:21:01.960 --> 0:21:04.120 the year right before the claps. It was like, oh, 0:21:04.320 --> 0:21:06.399 typically that means it's going to go higher. So it 0:21:06.480 --> 0:21:08.160 was a sign that was just way too much spec 0:21:08.240 --> 0:21:10.560 to exus is you know the minute that dose coin 0:21:10.560 --> 0:21:13.480 got in SATURNI live, that was the bell ringing. Okay, 0:21:13.560 --> 0:21:17.000 let's look back now, let's look forward. Right now, Ethereums 0:21:17.080 --> 0:21:20.919 up two on the year. The Bloomberg Galaxy Crypto index 0:21:21.000 --> 0:21:25.119 is up a hundred percent. Bitcoins up, bitcoins add the 0:21:25.119 --> 0:21:28.199 rest of the space. Ethereum is a stud and but 0:21:28.240 --> 0:21:31.240 I think that's that that appreciates is going to continue 0:21:31.280 --> 0:21:34.840 because the fundamental underpinions are still quite strong. How about 0:21:34.880 --> 0:21:38.200 the regulatory overhang, it's beginning to build here. We've seen 0:21:38.240 --> 0:21:40.960 some central bankers, including some folks in China. How do 0:21:41.000 --> 0:21:43.080 you think about that. Yes, that's the key thing point 0:21:43.520 --> 0:21:45.000 you brought that in there, and the key thing that 0:21:45.080 --> 0:21:46.800 Kathy would said. There's just not much you can do 0:21:46.880 --> 0:21:50.679 to really regulate bitcoin anymore. It's the world's largest decentralized network. 0:21:50.720 --> 0:21:54.399 It's open source software. So China his his. What China 0:21:54.440 --> 0:21:56.680 did recently, I think it's a good indication of how 0:21:57.160 --> 0:21:59.560 significant bitcoin is now here. We have a country that 0:21:59.640 --> 0:22:02.480 had let's not have I mean, it's becoming a surveillance state, 0:22:02.600 --> 0:22:05.120 doesn't have free full capital, certainly doesn't have a discourse, 0:22:05.280 --> 0:22:07.880 and they have to limit their their people from from 0:22:07.920 --> 0:22:10.359 Winnie the Pooh and from the Internet, so they have 0:22:10.440 --> 0:22:13.480 to limit Bitcoin and they have to limit flow of capital. 0:22:13.520 --> 0:22:15.520 So that's a significant sign. But it's also what's going 0:22:15.600 --> 0:22:17.520 to really tilt the US, I think to embrace it 0:22:17.560 --> 0:22:20.119 more because there's a cold war that's really brilliant and 0:22:20.160 --> 0:22:22.280 getting more and more. And that is what's I pointed 0:22:22.280 --> 0:22:24.159 out on the crypto chat this morning, is it's the 0:22:24.200 --> 0:22:28.840 digitalization of money. It's enhancing dollar dominance. The most widely 0:22:28.840 --> 0:22:31.399 traded crypto on the planet is tether. I've mentioned this before. 0:22:31.680 --> 0:22:35.000 It's double the volume of Bitcoin, and it's a digital dollar, 0:22:35.080 --> 0:22:37.760 and it's an ethereum token. So key things there. Dollars 0:22:37.800 --> 0:22:42.520 dominating ethereums gaining dominant theorems that significant, and the US 0:22:42.600 --> 0:22:44.679 is probably gonna say, oh, we also have to do 0:22:45.000 --> 0:22:47.600 is nothing here and we're beating China and the world 0:22:47.600 --> 0:22:51.119 and this big battle against the two major powers. Is 0:22:51.160 --> 0:22:57.320 there any um crypto token that you think is ideal 0:22:57.359 --> 0:23:00.880 for spending Because my idea is somethings gonna come along 0:23:00.920 --> 0:23:02.479