Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The single best idea, here's the single best idea of
Speaker 2: super Bowl sixty. It was not Bloomberg Surveillance day after
Speaker 2: super Bowl sixty, but we've been doing this for a
Speaker 2: few years. Today's show is the strongest post super Bowl
Speaker 2: show we've ever ever had, and it was so because
Speaker 2: of always our guests and always the news flow. A
Speaker 2: huge economic week had What a joy to have the
Speaker 2: Vice Chairman of the Federal Reserve of the former Vice chairman,
Speaker 2: I should say for Chairman Powell, Richard Clareda of Columbia
Speaker 2: Richard Clarina, now of Pimco. Brilliant question Paul Sweeney asked
Speaker 2: Vice Chairman Clarida about nineteen fifty one and FED independence.
Speaker 1: This is what they call in DC, very big tent language.
Speaker 1: It means different things to different people. The one accord
Speaker 1: that we do know about, which is the one that
Speaker 1: was struck in nineteen fifty one between the Treasury and
Speaker 1: the FED, was a signal moment and FED independence because
Speaker 1: it got the FED out of the business of essentially
Speaker 1: camping treasure yiels. In fact, as I like to teach
Speaker 1: my students, we all know that world War two ended
Speaker 1: in nineteen forty five, but the FED didn't get the
Speaker 1: memory till nineteen fifty one because the Truman administration pressured
Speaker 1: the FED to keep a cap on rates. The FED
Speaker 1: declare independence in the accord. I think now, if there
Speaker 1: is a Treasury Fed accord, it would not be so
Speaker 1: much focused on that. It would be focused on for example,
Speaker 1: should the FED a whole two trillion dollars of mortgage
Speaker 1: backed securities? Should the FED the composition of the Fed'
Speaker 1: portfolio really be tilted toward tea bills unless from holding
Speaker 1: ten and thirty year treasury So I think there are
Speaker 1: a lot of conversations.
Speaker 2: To have ricer Claire to there of a PIMCO. So
Speaker 2: yesterday we're in a game and I'm drifting off because
Speaker 2: it was, you know, it was such an offensive, you know,
Speaker 2: sort I like, not boring, but it's great defense and all.
Speaker 2: But I'm just thinking about I'm thinking about tech, and
Speaker 2: my question was, Okay, there's a bond offering last week,
Speaker 2: there's got to be another one sometime soon, and after
Speaker 2: that another one. Well like six hours later, we get
Speaker 2: this deal from Alphabet Google including thirty two and one
Speaker 2: hundred year bonds. Bloomberg wrote it up brilliantly in London.
Speaker 2: The one hundred year bond is in Sterling. It's going
Speaker 2: to be fascinating. We dragged in Robert Shiftman, expert on
Speaker 2: tech credit. Robert Schiffman on these bond deals by hyperscalers.
Speaker 3: I actually think this is pure genius. Weight at average
Speaker 3: cost of debt capitals near zero. You've got some of
Speaker 3: the smartest, wealthiest businessmen in the country making a long
Speaker 3: term bet on AI. They don't care about what the
Speaker 3: stock is doing tomorrow. They know that their balance sheets
Speaker 3: are pristine and they are building for long term success.
Speaker 3: I think, you know, people always ask us, why are
Speaker 3: these balance sheet double A and triple A. They've got
Speaker 3: so much cash, Why don't they buy back more stock,
Speaker 3: Why don't they give up bigger dividends. It's because they
Speaker 3: have vision, and this is some of the vision. You
Speaker 3: want to be able to put capital to work whenever
Speaker 3: you want, in whatever size you want, and they're doing
Speaker 3: it now, and quite frankly, I think is genius.
Speaker 2: Can't say enough about his work. Robert schiff And on
Speaker 2: the terminal on the Bloomberg. You have to have, you know,
Speaker 2: you have to have a Bloomberg terminal, but writing up
Speaker 2: on tech and credit he is just absolutely definitive. We're
Speaker 2: in a podcast. We're on Apple Well all that they
Speaker 2: did at the Super Bowl. We're on Spotify, on YouTube podcasts,
Speaker 2: single best idea.