WEBVTT - Single Best Idea with Tom Keene: Richard Clarida & Robert Schiffman

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

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<v Speaker 2>The single best idea, here's the single best idea of

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<v Speaker 2>super Bowl sixty. It was not Bloomberg Surveillance day after

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<v Speaker 2>super Bowl sixty, but we've been doing this for a

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<v Speaker 2>few years. Today's show is the strongest post super Bowl

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<v Speaker 2>show we've ever ever had, and it was so because

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<v Speaker 2>of always our guests and always the news flow. A

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<v Speaker 2>huge economic week had What a joy to have the

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<v Speaker 2>Vice Chairman of the Federal Reserve of the former Vice chairman,

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<v Speaker 2>I should say for Chairman Powell, Richard Clareda of Columbia

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<v Speaker 2>Richard Clarina, now of Pimco. Brilliant question Paul Sweeney asked

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<v Speaker 2>Vice Chairman Clarida about nineteen fifty one and FED independence.

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<v Speaker 1>This is what they call in DC, very big tent language.

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<v Speaker 1>It means different things to different people. The one accord

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<v Speaker 1>that we do know about, which is the one that

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<v Speaker 1>was struck in nineteen fifty one between the Treasury and

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<v Speaker 1>the FED, was a signal moment and FED independence because

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<v Speaker 1>it got the FED out of the business of essentially

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<v Speaker 1>camping treasure yiels. In fact, as I like to teach

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<v Speaker 1>my students, we all know that world War two ended

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<v Speaker 1>in nineteen forty five, but the FED didn't get the

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<v Speaker 1>memory till nineteen fifty one because the Truman administration pressured

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<v Speaker 1>the FED to keep a cap on rates. The FED

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<v Speaker 1>declare independence in the accord. I think now, if there

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<v Speaker 1>is a Treasury Fed accord, it would not be so

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<v Speaker 1>much focused on that. It would be focused on for example,

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<v Speaker 1>should the FED a whole two trillion dollars of mortgage

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<v Speaker 1>backed securities? Should the FED the composition of the Fed'

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<v Speaker 1>portfolio really be tilted toward tea bills unless from holding

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<v Speaker 1>ten and thirty year treasury So I think there are

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<v Speaker 1>a lot of conversations.

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<v Speaker 2>To have ricer Claire to there of a PIMCO. So

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<v Speaker 2>yesterday we're in a game and I'm drifting off because

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<v Speaker 2>it was, you know, it was such an offensive, you know,

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<v Speaker 2>sort I like, not boring, but it's great defense and all.

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<v Speaker 2>But I'm just thinking about I'm thinking about tech, and

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<v Speaker 2>my question was, Okay, there's a bond offering last week,

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<v Speaker 2>there's got to be another one sometime soon, and after

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<v Speaker 2>that another one. Well like six hours later, we get

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<v Speaker 2>this deal from Alphabet Google including thirty two and one

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<v Speaker 2>hundred year bonds. Bloomberg wrote it up brilliantly in London.

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<v Speaker 2>The one hundred year bond is in Sterling. It's going

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<v Speaker 2>to be fascinating. We dragged in Robert Shiftman, expert on

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<v Speaker 2>tech credit. Robert Schiffman on these bond deals by hyperscalers.

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<v Speaker 3>I actually think this is pure genius. Weight at average

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<v Speaker 3>cost of debt capitals near zero. You've got some of

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<v Speaker 3>the smartest, wealthiest businessmen in the country making a long

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<v Speaker 3>term bet on AI. They don't care about what the

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<v Speaker 3>stock is doing tomorrow. They know that their balance sheets

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<v Speaker 3>are pristine and they are building for long term success.

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<v Speaker 3>I think, you know, people always ask us, why are

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<v Speaker 3>these balance sheet double A and triple A. They've got

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<v Speaker 3>so much cash, Why don't they buy back more stock,

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<v Speaker 3>Why don't they give up bigger dividends. It's because they

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<v Speaker 3>have vision, and this is some of the vision. You

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<v Speaker 3>want to be able to put capital to work whenever

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<v Speaker 3>you want, in whatever size you want, and they're doing

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<v Speaker 3>it now, and quite frankly, I think is genius.

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<v Speaker 2>Can't say enough about his work. Robert schiff And on

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<v Speaker 2>the terminal on the Bloomberg. You have to have, you know,

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<v Speaker 2>you have to have a Bloomberg terminal, but writing up

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<v Speaker 2>on tech and credit he is just absolutely definitive. We're

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<v Speaker 2>in a podcast. We're on Apple Well all that they

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<v Speaker 2>did at the Super Bowl. We're on Spotify, on YouTube podcasts,

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<v Speaker 2>single best idea.