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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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Speaker 1: my co host Matt Miller. Every business day we bring

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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along

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Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast

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Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and

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Speaker 1: at Bloomberg dot com slash podcast. Well, the story of

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Speaker 1: the morning certainly has been this Archegos Capital Management, the

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Speaker 1: unwinding of this fund and the volatility that it's caused

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Speaker 1: a handful of names, including some of those big media

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Speaker 1: names like Viacom, CBS and Discovery, as well some tech names,

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Speaker 1: and the in in fact it's had on some of the

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Speaker 1: relationship banks. Let's get the latest with Shawnalie Bassek, Bloomberg

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Speaker 1: Wall Street reporter fanale Thanks so much for joining us here.

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Speaker 1: It's really been the story over the last several days

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Speaker 1: here about what happened. What do we what's the latest

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Speaker 1: on Archaegas Capital Management. Yeah, well, first of all, it's

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Speaker 1: the fallout we're seeing of the banks, but also what

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Speaker 1: an ugly day for Viacom. I mean the share is

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Speaker 1: still dropping. You know, I've spoke to a bunch of

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Speaker 1: investors today that playing these media stocks and obviously not

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Speaker 1: so thrilled with the moves you're seeing in the market

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Speaker 1: and really just the violent fundamentals, um, you know, the

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Speaker 1: violent swings you're seeing underneath the surface. Y, especially among

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Speaker 1: the investors that bought a secondary offering that Viacom issue.

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Speaker 1: Just uh, I guess on March five dollars to share

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Speaker 1: they bought stock and now the stocks stating at forty four.

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Speaker 1: So a lot of unhappy investors out there, I'm sure, yeah, absolutely,

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Speaker 1: And I mean if we need to take a big

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Speaker 1: step back, I mean a lot of this was bought

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Speaker 1: on by this family office run by you know, of

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Speaker 1: Bill Wong, who was embroiled in an insider trading a

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Speaker 1: scandal and then was able to really get all of

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Speaker 1: this exposure on leverage from multiple banks. UM. Really a

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Speaker 1: huge family office, despite not many people having heard much

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Speaker 1: about him before, not since two thousand twelve. I mean,

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Speaker 1: he's a family office, be because he um settled wire

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Speaker 1: fraud charges, right, and it's interesting that he's even trading

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Speaker 1: with Goldman Sachs and others because we know that um,

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Speaker 1: the compliance uh people at Goldman Sachs on numerous occasions

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Speaker 1: had told the their bankers, no, you can't work with

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Speaker 1: this guy anymore. Yeah, And ultimately that kind of moratorium

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Speaker 1: ran out, and it was Goldman Sacks, it was Morgan Stanley,

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Speaker 1: it was no Mura, it was Credit Sweets, even Deutsche

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Speaker 1: Bank at one point. So you really had a range

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Speaker 1: of banks show up and really enable the this um

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Speaker 1: person really amassing humongous family office that has now a

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Speaker 1: mass these major positions on leverage by means of the

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Speaker 1: banking system that has supported him and Shinali, what do

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Speaker 1: we know about the use of swaps in this transaction?

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Speaker 1: I guess one of the big issue for a lot

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Speaker 1: of people's, you know, particularly investors of some of these

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Speaker 1: names like Viacom, CBS and the Discovery, like why are

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Speaker 1: these stocks going up so dramatically when the fundamentals do

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Speaker 1: not support it? You even it prompted the company the

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Speaker 1: issue stock, it prompted analysts that downrade the stock, and

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Speaker 1: it was all because we didn't really know who the

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Speaker 1: buyer was, and it was because of these swaps. What

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Speaker 1: do we know? Yeah, it's a great question. These swaps

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Speaker 1: um you know, the arcane type of financial product called

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Speaker 1: contracts for difference. And you know, big hat tip to

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Speaker 1: Tracy Allaway on our team for really running through the

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Speaker 1: issues here. It's very unclear as to you know, what

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Speaker 1: the rules are around these swaps across borders. Right, We're

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Speaker 1: not even just talking about a US story here, and

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Speaker 1: the SEC did say they are in contact with the banks,

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Speaker 1: they are looking at the issue here as a major

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Speaker 1: financial regulation nerd. I've got to say that Gary Gensler

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Speaker 1: led SEC moving forward, I'd be pretty upset about what

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Speaker 1: happened here, and I'd also be looking moving forward around

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Speaker 1: why the leverage outside of the banking system has just

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Speaker 1: gone so far and away such that we're seeing one

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Speaker 1: of the biggest blow ups since LTCM. What does this

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Speaker 1: mean for Wong? What does this mean for our gos?

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Speaker 1: Is is this the end for that family office? I mean,

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Speaker 1: I want to see who banks with him again, Matt,

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Speaker 1: And I mean after something like this, you know how,

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Speaker 1: I think there will be much more to come in

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Speaker 1: the coming days on exactly how this happened. That that

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Speaker 1: that reminds me is there more to come in terms

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Speaker 1: of unwinding? Do you think I do think that we

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Speaker 1: have to be watching this closely I do think there's

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Speaker 1: more to come. One sign of faith that was given

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Speaker 1: by a hedge fund manager just this morning was, you

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Speaker 1: know the vix is still pretty low. Right, you're not

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Speaker 1: seeing these uh this these massive swings go into the

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Speaker 1: broader market and it's entirely But will you see a

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Speaker 1: few more hedge funds lose a lot of money? Probably? Yeah.

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Speaker 1: I mean first it was meme stocks and we could say, Okay,

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Speaker 1: that's just a bunch of retailers playing around because the board, Uh,

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Speaker 1: now we've got this issue. Um, have we heard anything

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Speaker 1: from the regulators in general? It just feels like you

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Speaker 1: were mentioning shy. It just feels like if I were

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Speaker 1: Gary Gensler coming in here, Um, I got some work

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Speaker 1: to do here. There's a lot of things for me

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Speaker 1: to look at, right, and let's let our memories be

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Speaker 1: longer too, Because at the end of early before even

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Speaker 1: the markets one hey, riot wire, we were seeing hedge

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Speaker 1: funds trade at you know, like a hundred to one

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Speaker 1: sometimes leverage when they were trading in treasury markets, to

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Speaker 1: the point that it caused pressure on some of the

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Speaker 1: safest funding markets in the world. So you know, it's

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Speaker 1: not even just game stop or you know this this

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Speaker 1: issue that we've seen with archegos. How is it that

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Speaker 1: you see so many issues in the hedge fund industry

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Speaker 1: in regard to borrow money in in just a year

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Speaker 1: and a half. Yeah, so leverage is definitely give me

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Speaker 1: a point. Um the gnsler is going to focus on

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Speaker 1: in terms of regulation, is there anything else? Is there

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Speaker 1: anything else? Well yeah, well yeah, yeah, Well there's Jenny Yellen,

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Speaker 1: there's f stock, right, I mean, are they going to

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Speaker 1: be clamping down on the non bank financial system in

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Speaker 1: a big world? And also disclosure? Right, Remember Gary Gansler

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Speaker 1: was former CFTC that was the main overseer swaps market.

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Speaker 1: That's exactly what I'm thinking in shale. When you see

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Speaker 1: the words secret um in regards to assets then in

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Speaker 1: a headline, then you know that there's gonna be at

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Speaker 1: least one or two Congressmen thinking this is a problem. Yeah, exactly.

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Speaker 1: It's the most read story on Bloomberg today, so it's

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Speaker 1: got to be in the back of everybody on Sunday

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Speaker 1: and Saturday and Friday. It's been the eight of the

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Speaker 1: top ten most dread stories over the weekend. So definitely, UM,

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Speaker 1: a fascinating scoop there, and uh, who we all props

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Speaker 1: to is this Eric Shatsker with Eric Schrie, Sophia Horte

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Speaker 1: coast to Tracy Alloway Bay who we have a whole

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Speaker 1: team on this one, all right, and remember, you know

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Speaker 1: it's interesting. We're gonna have you know, a return, a

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Speaker 1: story and a show on four thirty Wall Street time

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Speaker 1: on Bloomberg Radio and television, really diving into this issue,

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Speaker 1: so make sure to tune in for that. There was

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Speaker 1: recently a really cool deal done by a Canadian electric

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Speaker 1: vehicle manufacturer. Electro Mechanica had UM from the beginning, done

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Speaker 1: all of its production in China, but now the company

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Speaker 1: is opening a location in Arizona. And we've got the

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Speaker 1: guy who did that deal for b d O on

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Speaker 1: the air, Tom Stringer, Corporate real Estate Advisory Managing Director

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Speaker 1: UM running site selection and incentives there. And Tom, let's

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Speaker 1: talk about before we did the back to work, UM,

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Speaker 1: you know, back to school uh discussion, let's talk about

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Speaker 1: Electro Mechanica, UM, how you got them into the US,

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Speaker 1: into Arizona and why they're building there instead of another

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Speaker 1: plant in China. Well, good morning, guys, thanks for having

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Speaker 1: me back. Really appreciate it. Very interesting story. Um, certainly

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Speaker 1: it's a it's one that's part of a frothy ev

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Speaker 1: market it right now. But you know, we started looking

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Speaker 1: at the project a couple of years ago. UM, the

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Speaker 1: market for evs was still really just emerging. Obviously Tesla

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Speaker 1: had had established itself, but other players were really just

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Speaker 1: sort of coming up to bat at that point in time.

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Speaker 1: And we were in the midst of the tarif from

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Speaker 1: the trade discussions, UM, which caused right a lot of

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Speaker 1: ripples and people were having to make adjustments for that.

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Speaker 1: So access to the North American market, solidifying the supply

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Speaker 1: chain were really kind of strategic decisions that the company

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Speaker 1: was making early on. And by the time we got

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Speaker 1: through the project and COVID had read its ugly head

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Speaker 1: and then market demand and awareness really poor EVS in

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Speaker 1: the US really just surged dramatically. It was looked like

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Speaker 1: a very strategic decision that was made two years ago.

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Speaker 1: Now these these a lot of these sites are going

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Speaker 1: up in Texas, California, Arizona. Does the sun have something

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Speaker 1: to do with that? Well, I don't think anybody dislikes

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Speaker 1: warm weather. Certainly into the winner that we've had here,

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Speaker 1: in the northeast. So that's checked on for those locations.

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Speaker 1: But I think if you look at the states that

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Speaker 1: are really emerging as EV powerhouses and you hit the

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Speaker 1: nail on the head, I would say, you know, you Texas,

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Speaker 1: Arizona in particular, which had really no automotive manufacturing industry

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Speaker 1: prior to too Lucid, to Nicola now electro Mechanic and

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Speaker 1: some others. Um, you're looking at southern states that are

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Speaker 1: aggressive in economic development in terms of corporate recruitment, job training, UM,

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Speaker 1: aggressive tax and incentive policy, terrific utility rates, and frankly,

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Speaker 1: with warm weather and good tax rates from a first

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Speaker 1: lincome standpoint, places people in talent really want to go.

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Speaker 1: So those have been very attractive kind of benchmark points

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Speaker 1: for those locations. Hey, Tom, you mentioned earlier, you know,

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Speaker 1: the push for some companies to bring their supply chains

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Speaker 1: um maybe on shore in the US UH, and that

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Speaker 1: was certainly a big discussion point during the Trump administration.

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Speaker 1: Where are we now that we have a new administration.

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Speaker 1: Are companies still moving that way or they reassessing? No,

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Speaker 1: I think it's a it's a good bit of continuity

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Speaker 1: between the administrations. You know, anytime you can get Republicans

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Speaker 1: and Democrats degree on anything, watch out, it will probably happen.

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Speaker 1: But this one seems to be um really taking hold

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Speaker 1: because the markets and commercial industry and and frankly consumers

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Speaker 1: were driving it more so than any policy decisions. So

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Speaker 1: here we have the policy decision makers chasing the markets,

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Speaker 1: which usually makes for very good policy. Um. So there's

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Speaker 1: a lot of continuity. I think you saw great investment

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Speaker 1: also again in Arizona with Intel just last week with

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Speaker 1: the twenty billion dollar chip fab facility, and that was

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Speaker 1: facilitated by both administrations, both the Trump administration starting it

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Speaker 1: and the Biden administration coming on and taking hold to

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Speaker 1: help the state of Arizona drive that home. So, UM,

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Speaker 1: some good continuity in in the kind of will will say,

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Speaker 1: um resetting of supply chains. Uh, that's that's really going on.

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Speaker 1: So we're an implementation now, it's not just policy anymore

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Speaker 1: thought process. I just want to jump in and I'll

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Speaker 1: tweet out a picture of the Electro Mechanica solo car.

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Speaker 1: It's so cool. It's a little three wheeler with an

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Speaker 1: awesome trunk. I recommend googling it, but again I'll send

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Speaker 1: it out on Twitter. Tom let's get to the bank news,

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Speaker 1: which is, you know a lot of our listeners obviously

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Speaker 1: working in banks, tired of being at home with their

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Speaker 1: kids or in the case of the younger workers, with

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Speaker 1: mom and dad. They want to get back to the

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Speaker 1: excitement of the office, or maybe they don't. What are

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Speaker 1: you hearing, Hey, great question, I think all of us now.

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Speaker 1: A year in UM, it was super positive. At first,

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Speaker 1: it was unbelievable how quickly corporate America, financial institutions, government

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Speaker 1: really shifted gears and and kept productivity up and shifted

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Speaker 1: to it to working at home. UM. I think we've

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Speaker 1: certainly realized there's some advantages to it, but there's certainly

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Speaker 1: some limitations, and those limitations are starting to kind of

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Speaker 1: pray the edges of it. I think people are excited

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Speaker 1: to get back. I think it's gonna look a little different.

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Speaker 1: That's one thing that's been consistent. You hear that term

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Speaker 1: hybrid thrown out there are probably a thousand times today

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Speaker 1: every leader that gets asked this question. That's because it's right.

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Speaker 1: We've proven our cost effect that it is to allow

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Speaker 1: people to work from flow from home and have flexibility,

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Speaker 1: and that access to talent really means you can recruit

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Speaker 1: somebody to work in New York, but they could be

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Speaker 1: in Iowa or across the other side of the world.

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Speaker 1: And that's a huge advantage for companies and a challenge

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Speaker 1: for jurisdiction. So I think as we start to come back,

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Speaker 1: flexibility is going to be extremely important. Probably less square

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Speaker 1: footage in the central business district is something that's definitely emerging,

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Speaker 1: and that's the challenge that's going to have to be addressed.

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Speaker 1: In those higher cost jurisdictions, They're gonna have to get

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Speaker 1: into economic development a lot more aggressively because all those

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Speaker 1: jobs won't come back. Um, there was a great static

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Speaker 1: in that from the Journal the other day that office

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Speaker 1: occupancy physical occupancy in New York City, for example, is

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Speaker 1: down eight four from last year, and I mean that

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Speaker 1: is just a devastating when you think of the number

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Speaker 1: of turkey sandwiches and bagels that are not consoled and

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Speaker 1: how that affects right the rest of the region. Yeah,

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Speaker 1: we'll have to see how people come back, certainly in

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Speaker 1: some of these urban markets. Tom Stringer, thank you so

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Speaker 1: much for joining us. Tom Stringer's corporate real Estate Advisory

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Speaker 1: Managing director for Site Selection and Incentives at the firm

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Speaker 1: b DO based in your giving us some thoughts about

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Speaker 1: how the supply chain coming closer to home for a

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Speaker 1: lot of US companies and what that means for infrastructure

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Speaker 1: time for Bloomberg Opinion. We rejoined today by Chris Anderson,

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Speaker 1: CEO and co founder of three D Robotics based in

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Speaker 1: San Diego, and the topic really is some of these

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Speaker 1: big tech companies, are they media companies that are responsible

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Speaker 1: for the content or are they simply technology platforms uh

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Speaker 1: and sourcing and hosting user generated content therefore uh not

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Speaker 1: liable for that content. Chris, thanks so much for joining

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Speaker 1: us here. We we just had some of those big

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Speaker 1: tech CEOs Facebook, Google and others in front of Congress.

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Speaker 1: Yet again, I don't think anything of substance was achieved.

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Speaker 1: What's your view on how maybe some of these you know,

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Speaker 1: big tech copies should be thinking about the content that's

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Speaker 1: on their platforms. Yeah, you're you're right. There was nothing

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Speaker 1: of substance achieved in there, and there never is and

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Speaker 1: these sort of things they're largely theater um. The problem

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Speaker 1: is that there's a, you know, a fundamental disconnect between

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Speaker 1: the role of the platform, which is really what they

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Speaker 1: call common carrier. They you know, there's the user created

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Speaker 1: content is impossible to uh to to edit the way um,

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Speaker 1: you know, professionally created content is um. And then then

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Speaker 1: then the their power which is now you know, greater

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Speaker 1: than than the newspapers um. And so the you know,

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Speaker 1: the question is is it's is it going to be

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Speaker 1: some sort of oversight board like Facebook you're creative? Well,

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Speaker 1: that doesn't scale. Is it going to be you know,

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Speaker 1: actually imposing requirements on them that they responsible for all

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Speaker 1: the content? Well, that doesn't scale. Is it breaking them

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Speaker 1: up like an antitrust? Well, that doesn't really solve the problem.

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Speaker 1: And we recommend that actually a um, you know, a

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Speaker 1: concept from the new paper ages is the best one.

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Speaker 1: So what's the what's the concept? Well, back back when

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Speaker 1: in when newspapers were the dominant cultural force for politics

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Speaker 1: and and and and and news in America, newspapers took

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Speaker 1: their responsibilities pretty seriously, and they were considered the fourth

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Speaker 1: the state, you know, after the after the three states

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Speaker 1: of government, the fourth the state was like the gate

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Speaker 1: keeper that rather the the the you know, the the overseer,

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Speaker 1: the you know, the people of the institution that kept

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Speaker 1: them honest and so newspapers have created the role of

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Speaker 1: om Boozman and on Woodsman is an independent UM and

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Speaker 1: you know, person and employee often whose job it is

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Speaker 1: to not only respond to complaints from the public, but

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Speaker 1: also to examine the institution from the inside, UM a

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Speaker 1: little bit like for example, an inspector general might be

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Speaker 1: UM within government. And most newspapers had on Boodsman, and

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Speaker 1: you know, and they just they just kept an eye

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Speaker 1: on you know, they watched the Watchman if you will, UM.

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Speaker 1: And now, over time, as newspaper industry has declined, the

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Speaker 1: role the om Boodsman has gone away. The New are Times,

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Speaker 1: for example, which called there's a public editor. They got

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Speaker 1: rid of their last one in two thousand and seventeen.

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Speaker 1: And yet and so, and that's appropriate as as newspapers

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Speaker 1: became less of a central figure in our you know,

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Speaker 1: our public discourse. But Chris, it's also in a newspaper,

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Speaker 1: you can't Paul and I can't write in and say

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Speaker 1: whatever we want in the New York Times the addition

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Speaker 1: coming out tomorrow, right. They they really are in charge

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Speaker 1: of their own content. Whereas Facebook is more like Speaker's

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Speaker 1: Corner in Hyde Park. Anybody can go there with a

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Speaker 1: soapbox and spew whatever kind of lies misinformation he or

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Speaker 1: she wants, and they often do. That's the problem, right

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Speaker 1: exactly what the analogy is that that a newspaper, you

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Speaker 1: you know, the writers the words are our subject, your control,

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Speaker 1: their employees. For social media, what you have instead is

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Speaker 1: policies and algorithms. The you know, they can't control the words,

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Speaker 1: they can control their algorithms and how they promote the

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Speaker 1: words to other people. And they control policies about what

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Speaker 1: moderation rules will be applied to take words down if

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Speaker 1: they're considered hate, speecher or whatever. And so the ambutsman

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Speaker 1: role here is more technical and and sort of policy oriented.

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Speaker 1: So in this case, for example, let's say that there's

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Speaker 1: a intrinsic bias in in Facebook's algorithms, Well, you know,

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Speaker 1: an ambutsman could spot that from from both inside and outside.

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Speaker 1: They not only can see the damage on the outside,

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Speaker 1: but they can see what's causing it, the root cause

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Speaker 1: on the inside and recommended change. Non botsman would then

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Speaker 1: have the ability to make public recommendations. The company would

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Speaker 1: be obligated to respond to those um those recommendations with

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Speaker 1: a certain time period etcetera. So that's something that that

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Speaker 1: an outside institution which doesn't have access to the algorithms,

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Speaker 1: can't do, and an inside, a purely inside institution might

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Speaker 1: have a conflict of interest from doing themselves, such as

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Speaker 1: an internal ethics group. Non Buosman states straddle the two

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Speaker 1: worlds and has perspective on both. It's interesting, this is

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Speaker 1: the seriousness of this issue here is getting ever more

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Speaker 1: apparent here. Uh, it impacted presently the election. In fact,

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Speaker 1: we're having a guest coming up later in the show

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Speaker 1: this morning, Jack Divine, former chief of ci CIA's worldwide operations.

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Speaker 1: He's actually written a book about what a threat Russia

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Speaker 1: poses in the cyber world. Uh, and again calling to

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Speaker 1: mind the election. So, Chris, the question is, can we

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Speaker 1: really depend upon these platforms to self police given how

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Speaker 1: serious this issue is? What the answer is by themselves?

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Speaker 1: You know? No? And And the reason is is not

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Speaker 1: just that they're you know, might have conflicts of interests

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Speaker 1: or financial you know, reasons to do this. The answer

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Speaker 1: is that this is really their DNA. They're they're all

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Speaker 1: about growth, you know, They an engagement and the problem

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Speaker 1: is that growth and engagement sometimes leads to toxic behavior.

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Speaker 1: As a matter of fact. You know, as we know,

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Speaker 1: we're sort of driven to negative, negative news, and so

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Speaker 1: you know, newspapers have the same problem. They sort of

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Speaker 1: you know, push negative news because it was more if

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Speaker 1: it leads, it leads, If it bleeds, it leads, exactly.

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Speaker 1: So we can't count on them to do it themselves.

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Speaker 1: We do need some sort of independent oversight at a

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Speaker 1: certain scale. Obviously every little startup doesn't doesn't need this,

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Speaker 1: but a certain scale you're considered in the big leagues.

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Speaker 1: Call it million, you know, active users or a hundred millions.

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Speaker 1: You know, we know it when we see it at

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Speaker 1: that scale. There's a public responsibility, but there's not a competence.

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Speaker 1: We can't assume they have a competence to themselves. We

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Speaker 1: you know, we're looking for different methods. Congress doing it

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Speaker 1: for them isn't gonna work. Antitrust isn't gonna work. You know,

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Speaker 1: Facebook's oversight board is completely overwhelmed. They had two d

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Speaker 1: and twenty thousand complaints over the last three years and

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Speaker 1: they've resolved and they've looked at seven of them. But Chris,

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Speaker 1: your idea is a good one. I mean, is there

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Speaker 1: any possibility that it gets traction and ombudsman that straddles

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Speaker 1: both worlds and controls the algorithms and you know, uh

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Speaker 1: watches the watchers. Well, it's clear that Congress wants to

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Speaker 1: do something. They want to pass the law. Um, you know,

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Speaker 1: getting rid of the two thirty protections is like an

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Speaker 1: an H bomb. It's it's not gonna work. So you know,

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Speaker 1: they can need to bring up you know, Mark Zuckerberg

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Speaker 1: gonna tie every every three months, and they know, have

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Speaker 1: that little that little circus, or they can pass a

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Speaker 1: while requiring them to have this independent board member called

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Speaker 1: non budsman called you know, a public editor. Whatever they want,

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Speaker 1: and that seems structural, It seems easy to do. And

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Speaker 1: then you know what the experiment play out. Is there

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Speaker 1: appetite in Washington for that? Is there appetite for for action? Yes?

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Speaker 1: Is it an non budsman per se. Let's hope far

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Speaker 1: our o edit hasment influenced there. And I wonder if

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Speaker 1: there's appetite and Silicon Valley, because on the one hand,

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Speaker 1: they want to get rid of this problem, then they

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Speaker 1: don't have to deal with the idea that they would

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Speaker 1: have to break up our to thirty. On the other hand,

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Speaker 1: they want growth and engagement exactly. I think it's an

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Speaker 1: appetite to get to I mean, they want to do

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Speaker 1: the right thing. They're just not really set up to

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Speaker 1: do the right thing, and all the incentives are wrong.

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Speaker 1: So if they could have a a a surgical you know,

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Speaker 1: um effective solution, which is to say, one of the

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Speaker 1: board members have to be independent, has to be responsible

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Speaker 1: for this, has to be accountable to the public, but

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Speaker 1: a visible internally, I think they'd love it. It reminds

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Speaker 1: me of when Google decided they needed an adult in

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Speaker 1: the room and they brought in actual Eric Schmitt. Chris,

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Speaker 1: thanks so much for joining us, real pleasure're talking to you.

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Speaker 1: Fascinating stuff. Chris Anderson, CEO and co founder of three

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Speaker 1: D Robotics, also writing one of our pieces on Bloomberg Opinion.

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Speaker 1: If you want to see the work of our opinion people,

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Speaker 1: just type in O, P, I N GO on your

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Speaker 1: Bloomberg terminal. Let's talk about weed a little bit, because

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Speaker 1: New York lawmakers are agreeing to legalize recreational marijuana and

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Speaker 1: we could see dispensaries opening up as early as next year.

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Speaker 1: Let's bring in Keisha Cluki. She's a government reporter out

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Speaker 1: of Albany. Keisha, Um, so this is really going to happen. Yeah. Yeah,

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Speaker 1: it's a long time coming. Lawmakers have been pushed in

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Speaker 1: it the last few years, but they managed to push

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Speaker 1: it through and we're expecting a vote on the bill

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Speaker 1: any day now and Governor Cuomo has already staid he's

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Speaker 1: ready to sign it. Alright, So what does this mean

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Speaker 1: from I mean, how did that? Did think? Why? Now?

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Speaker 1: I guess how did this get done? Now? Keisha? Yeah? Well,

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Speaker 1: I think Um, Like I said, lawmakers have been pushing

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Speaker 1: it for the last few years, and they've really just

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Speaker 1: been stuck on a certain number of issues within the

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Speaker 1: bill and they weren't able to pass it through and

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Speaker 1: the last few years and sessions, UM. Last year they

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Speaker 1: said we've got it figured out, we're going to go

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Speaker 1: through and do it, and then the coronavirus pandemic hit,

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Speaker 1: so it was really delayed an additional year. Um. And

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Speaker 1: I think there's really this additional push because there's we're

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Speaker 1: surrounded New York day is surrounded by states passing UM

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Speaker 1: and legalizing recreational adult youth marijuana. New Jerseys on on

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Speaker 1: track to do it in a in two years. I

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Speaker 1: believe in New York is used to being first, and

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Speaker 1: I think here, uh, they've really been waiting and looking

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Speaker 1: at what's been going on nationally and they want to

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Speaker 1: get out there and get get their hands on some

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00:23:07,880 --> 00:23:10,600
Speaker 1: of that tax revenue. So funny to think of adult

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00:23:10,720 --> 00:23:13,880
Speaker 1: use marijuana because I feel like people quit smoking pot

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00:23:13,920 --> 00:23:16,520
Speaker 1: when they're twenty one or older. It's like a it's

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00:23:16,560 --> 00:23:19,280
Speaker 1: a high school thing. But this is do a lot

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00:23:19,280 --> 00:23:23,320
Speaker 1: of people in New York smoke pot? Well, it's it's

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00:23:23,320 --> 00:23:27,399
Speaker 1: actually expected to be. We we have a large marijuana

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00:23:27,720 --> 00:23:30,800
Speaker 1: medical marijuana market right now, but this is gonna be

435
00:23:30,880 --> 00:23:34,920
Speaker 1: anywhere from a four point to to six billion dollar

436
00:23:35,080 --> 00:23:40,560
Speaker 1: industry depending on on what your what business outlooks you're

437
00:23:40,560 --> 00:23:42,760
Speaker 1: looking at now. So it's gonna be one of the

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00:23:42,840 --> 00:23:45,960
Speaker 1: largest markets in the US, maybe I think even second

439
00:23:46,160 --> 00:23:50,840
Speaker 1: to second in the nation to California. Alright, how about

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00:23:50,960 --> 00:23:54,200
Speaker 1: for the folks that may have been convicted of a

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00:23:54,359 --> 00:23:57,680
Speaker 1: marijuana related crime, what happens to them and their records

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00:23:57,680 --> 00:24:00,880
Speaker 1: and so on. Yeah. So one of the main things

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00:24:00,920 --> 00:24:03,880
Speaker 1: that lawmakers have been pushing to do in this legislation

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00:24:04,080 --> 00:24:07,520
Speaker 1: is to help people who help both people and the

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00:24:07,680 --> 00:24:12,199
Speaker 1: communities who were hindered by previous drug laws and UH,

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00:24:12,359 --> 00:24:14,840
Speaker 1: the bill which came out this the details came out

447
00:24:14,880 --> 00:24:17,639
Speaker 1: this weekend, is going to have an automatic expungement of

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00:24:17,680 --> 00:24:22,080
Speaker 1: records for people with previous convictions who UM for activities

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00:24:22,119 --> 00:24:24,840
Speaker 1: that would no longer be criminalized. So as soon as UM,

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00:24:24,920 --> 00:24:28,920
Speaker 1: marijuana would be legal for people ages twenty one and older, UM,

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00:24:29,000 --> 00:24:33,320
Speaker 1: and they're going to reduce the amount of UM. The

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00:24:33,800 --> 00:24:37,119
Speaker 1: there's still a certain amount of marijuana that you can

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00:24:37,200 --> 00:24:39,200
Speaker 1: have on your person. It's not you know, a free

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00:24:39,200 --> 00:24:41,720
Speaker 1: for all. UM. There's still rules. They want to make

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00:24:41,760 --> 00:24:44,480
Speaker 1: sure that they're keeping the market legal, people aren't selling

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00:24:44,480 --> 00:24:46,760
Speaker 1: it on the black market, and really trying to keep

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00:24:46,800 --> 00:24:49,439
Speaker 1: it safe. But they're also trying to make sure that

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00:24:49,520 --> 00:24:54,360
Speaker 1: individuals aren't targeted for this. Has it been unsafe before?

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00:24:54,359 --> 00:24:59,840
Speaker 1: We've seen danger problems with pot. Yeah, I mean when

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00:25:00,080 --> 00:25:01,959
Speaker 1: when people are buying it on the black market. And

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00:25:01,960 --> 00:25:05,280
Speaker 1: this is just talking to lawmakers. UM, it can really

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00:25:05,280 --> 00:25:08,879
Speaker 1: contain anything. There's no guarantee of what's in it. So

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00:25:09,359 --> 00:25:12,720
Speaker 1: just like alcohol. Way back in the day when alcohol

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00:25:12,840 --> 00:25:16,320
Speaker 1: was UM, they they started a labeling system. Actually with

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00:25:16,320 --> 00:25:20,359
Speaker 1: Bourbon was the first labeling system. Thats wired you to

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00:25:20,440 --> 00:25:23,480
Speaker 1: put exactly what was in it, because people were putting

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00:25:23,520 --> 00:25:25,720
Speaker 1: anything in it, and it'll be the same with marijuana,

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00:25:25,720 --> 00:25:29,480
Speaker 1: so theoretically it'll be safer controlled. You know, the dosage

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00:25:29,520 --> 00:25:32,000
Speaker 1: that you're getting, um, you know exactly what's been it.

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00:25:33,160 --> 00:25:35,040
Speaker 1: A Keisha, thank you so much for joining us. We

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00:25:35,080 --> 00:25:40,240
Speaker 1: appreciate a. Keisha Kluki, government reporter for Bloomberg Government Weed legalized,

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00:25:40,240 --> 00:25:42,320
Speaker 1: weed coming to New York State. Here in New Jersey,

473
00:25:42,400 --> 00:25:44,439
Speaker 1: it has been legalized, although I don't think it's actually

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00:25:44,440 --> 00:25:47,880
Speaker 1: been implemented yet. They're kind of working some things out,

475
00:25:47,920 --> 00:25:50,840
Speaker 1: but it's coming and it's interesting. You know, it doesn't

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00:25:50,840 --> 00:25:53,520
Speaker 1: appear math that there's going to be a federal law

477
00:25:53,680 --> 00:25:57,320
Speaker 1: anytime soon, but the boy, the states are moving very aggressively,

478
00:25:57,640 --> 00:25:59,960
Speaker 1: and so when you get a big state like New York,

479
00:26:00,040 --> 00:26:04,240
Speaker 1: that really makes a statement. Of course, California, Colorado, some

480
00:26:04,240 --> 00:26:06,160
Speaker 1: of the other western states have had it, but it's

481
00:26:06,200 --> 00:26:09,040
Speaker 1: been really it's a big statement here when uh, you know,

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00:26:09,080 --> 00:26:11,280
Speaker 1: state as large as New York does it. Of course

483
00:26:11,320 --> 00:26:14,000
Speaker 1: with New York City, so it's a big move forward

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00:26:14,040 --> 00:26:17,359
Speaker 1: for the cannabis business. Thanks for listening to the Bloomberg

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00:26:17,400 --> 00:26:20,800
Speaker 1: Markets podcast. You can subscribe and listen to interviews of

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00:26:20,880 --> 00:26:25,639
Speaker 1: Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller.

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00:26:25,920 --> 00:26:30,199
Speaker 1: I'm on Twitter at Matt Miller three. On Fall Sweeney,

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00:26:30,200 --> 00:26:32,840
Speaker 1: I'm on Twitter at pt Sweeney Before the podcast. You

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00:26:32,840 --> 00:26:35,240
Speaker 1: can always catch us worldwide at Bloomberg Radio