October 7, 2025 • 28 mins
- Ed Yardeni, Chief Investment Strategist at Yardeni Research
- R Kipp deVeer, Co-President and Partner at Ares Management
- Ned Lamont, Governor (D) of Connecticut
- Bill Cassidy, Republican Senator: Louisiana
Ed Yardeni, Chief Investment Strategist at Yardeni Research, joins for a discussion on the US equity outlook and the push higher in markets. R Kipp deVeer, Co-President and Partner at Ares Management, and Ned Lamont, Governor (D) of Connecticut, join from the Greenwich Economic Forum for discussions on the US economy and US leadership. Bill Cassidy, Republican Senator: Louisiana, joins to talk about the government shutdown and outlook for Trump administration priorites.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:11):
This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
with Lisa Bromwitz and Amrie Hordern. Join us each day
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anywhere else you listen, and as always on the Bloomberg
(00:34):
Terminal and the Bloomberg Business app Danny if you had
any research writing. Everyone's on the lookout for signs of
an AI bubble, Yet the market continues to climb the
walls of bubble worries. Joined us now for more ed
Welcome to the program, sir, Two part question, what's the
bubble and what is this?
Speaker 3 (00:51):
Well, at this point, I think we're getting into bubble territory.
For sure. We've got the forward pe of the S
and P five hundred around twenty three, and the peak
during the previous tech bubble in the late nineteen nineties
was twenty five. So we're getting close. But you know,
the earning story has been phenomenally strong, particularly this year
(01:15):
in the first and second quarters. Who would have thought
with all the commotion coming out of Washington, And it
looks us on the third quarter earning season, which is
about to start, is going to be very strong as well.
We're expecting ten percent a year over yere percent change,
So the earnings are actually there to continue to drive
this bull market higher. But I wouldn't want to see
(01:38):
the valuation multiple go any higher than it is right now.
Speaker 2 (01:41):
At that earning story part of the reason, part of
many reasons why a lot of people are still looking
for the potential mounts up. Typically, a mounts up is
a risk people want to own. Is it a risk
you want to own? And are you willing to keep
your bets on this market quite concentrated to take advantage
of it?
Speaker 3 (01:57):
Well, you know, I think it hasn't been all valuation
And the reality is again has been a earnings lead
melt up, which is fine. I don't have a problem
with that, and that's really not a melt up. The
fundamentals are actually there. And oh, by the way, if
this whole AI thing turns out to be a lot
of hype and the companies that are spending all this
(02:19):
money on AI infrastructure, have to kind of slow it down,
and it's not exactly the end of the world. I mean,
these companies are using cash flow to finance this. It's
not like nineteen ninety nine where telecommunications companies did seller
financing and there was a tremendous amount of debt because
to do that they borrowed in the jump bond market.
(02:40):
So there's a lot of credit in the bubble back then.
This time around, it's cash flow, and if they have
to slow it down, their profits are suddenly going to
look even better.
Speaker 4 (02:52):
Well, and two of those companies, AMD and open Ai.
The amdco Julie Sue said this yesterday. The more open
ai deploys, the more revenue get and they get to
share the upside. Does it concern you that this is
so circular?
Speaker 3 (03:06):
Yeah, well, you know, I'm thinking of putting a few
billion dollars into open ai and doing business with them.
Everybody's playing the game here, So yeah, the circularity of
it has got the market's really spooked. The market's got
spooked about AI back in January, remember with deep seek,
and so this is kind of the latest fear that
(03:29):
we haven't seen anywhere near the kind of correction we
saw with Deep Seek. I'm not that concerned about it.
I think there is a lot of capital spending going on,
and these companies, you know, unless they're misinformed, which I
kind of doubt it. These hyperscalers, they know what's going on,
and they know that the capacity of their system is
(03:52):
getting stretched, is getting pushed by everybody using AI and
try to figure out how to use it.
Speaker 4 (04:00):
Bezos said this week as well that investors are just
having a hard time in the middle of excitement to
distinguish between the good ideas and the bad ideas. How
do you distinguish between the good and the bad?
Speaker 3 (04:13):
Well, I'm no better at it than anybody else's At
this point, I'm going to assume that the hyperscalers, who
basically are Magnificent seven kind of companies, know what they're doing,
and they are you know, a lot of the investments
are data centers. It's not like you know, right now,
there's a lot of mystery about where the spending is going,
(04:35):
and the data centers but themselves and that are actually
the data is available monthly from the construction report that
the government used to put out when they was open
But that showed that data centers were running around forty
billion dollars, and that's at an annual rate. That's times twelve.
(04:57):
That's not a terrible number. Now, of course, once you
build the actual structure, you've got to stuff it with
all these semiconductor chiefs, and that that money is being spent.
I don't think this is money down the drain. I
think you know, this is for real.
Speaker 2 (05:14):
And there is an additional dimension that makes this rather
strange that we have the US government picking winners at
the same time intow Trilogy Metals, we have open AI
picking winners too. We saw evidence of that in the
last twenty four hours. Does that change your approach to
start picking at.
Speaker 3 (05:29):
Well? You know, my attitude towards Washington is, it's amazing
how well the economy does despite Washington. It's amazing how
well the stock market does despite Washington. I don't I
don't like the state capitalism, as you rightly called it.
It doesn't it's not really necessary. The free market should
be able to decide who the winners are and who
(05:51):
the losers are. So it's more more a noise coming
out of Washington. The signal we're really seeing the fundamentals
as the economy continues to be extremely resilient. That's really
the word for the economy. The past four years, we've
had the most widely anticipated recession of all times. That
(06:12):
didn't happen. I didn't think it would happen. And I
think that's why the evaluation multiples are high, and that's
why earning this so remarkably strong.
Speaker 2 (06:21):
Stay with us, multilintex Savanta's coming up off to this.
Speaker 5 (06:33):
Here.
Speaker 1 (06:34):
It is not a government shutdown.
Speaker 6 (06:35):
It's a beautiful morning in front of a beautiful waterfront.
And I'm here with Kip Deevere, who's the co president
of Areas Management, which oversees almost six hundred billion dollars,
And thank you so much for being with us here.
I do want to start where John was talking about
this idea of the tech build out. How much private
asset managers have been instrumental in that. I'm just wondering
(06:56):
how much you are continuing to accelerate your investments into
digital infrastructure, given that everyone is worried about an AI bubble?
Are we investing too much? Are we seeing the fruitions
of our money?
Speaker 7 (07:06):
Sure, so we've sort of transitioned that business to be
broader in its scope. Historically we've been largely a lender
to the space, so a senior lender and a mezzanine
investor as well through our dead infrastructure business. We did
a recent acquisition that you may be aware of, a
business focused on industrial logistics investing mostly in Japan, but
(07:27):
it's global and they have real digital infrastructure development capability,
so we've started to roll that out. We've done two
completed projects now in Tokyo.
Speaker 5 (07:37):
We have a third underway.
Speaker 7 (07:39):
Just on the outskirts of London, so we're getting more
active on the development front. I think that the measured
approach that we've taken getting into the market doesn't frankly
put our investors at risk right Our goal is to
generate great returns for our investors, So we think if
you stay in tricky markets, hard to find entitle land,
(08:00):
and then you're building really high quality facilities, which we
think we are. Because we have an in house team
that came with the acquisition, it's pretty easy for us
to find great leases from investment grade tenants like viper scalers.
Speaker 6 (08:13):
Are you passing up opportunities that concern you? Do you
see things out there that I.
Speaker 7 (08:17):
Think we're selective, and I think if you look historically
in areas like this over the last twenty or thirty years,
typically when this much capacity comes online, some of it,
at the end of the day is going to have
to be marginal.
Speaker 1 (08:30):
Right.
Speaker 7 (08:31):
These trends tend to lead to overbuilds in certain places.
So I think us being selective and being measured and
what we build is super super important.
Speaker 6 (08:39):
One thing that we've seen over the past five years
is an incredible consolidation of market capitalization of the biggest
asset managers, the biggest private asset managers. I'm thinking of
the ones that you won't name, like Apollo and KKR,
and of course areas defintely named. I'm just wondering whether
you think this is the sort of path to follow,
that you think the biggest are going to only get
bigger and dominate this book.
Speaker 7 (09:00):
We've believed since the beginning Frankly of the company, the
more scaled platform, both in terms of diversity of asset
classes but also diversity of geography is it was a
huge advantage. So we think we get better information to
participate in more markets. We probably do better due diligence
because we have better access points. So I think the
(09:22):
both investing advantages but also the capital raising advantages are
real and you'll see you see that with the growth
of Varies, with the growth of Apollo, and growth of
all the Blackstone KKR, all these folks that have consolidated
share for you.
Speaker 6 (09:35):
Just actually did see another record year for fundraising, and
it feels like it's accelerating with respect to how easily
it is to really get interest from investors.
Speaker 1 (09:45):
What's sort of been the tipping point? Where are you
seeing that interest really coming from?
Speaker 7 (09:48):
Yeah, I mean, we grew up raising most of the
capital from the firm from institutions, so it was pensions,
sovereign wealth funds, et cetera, et cetera. And we've really
diversified the way that we raise capital today. So I
would say an increased focus on the wealth channel for sure,
an increase focus on what our insurance clients are looking
(10:10):
for because they're very challenged in a tight spread, lower
rate environment. So it's just become more and more diverse.
And I think is we're able to educate and offer
access to investors that didn't have access to certain products before.
There's just a lot of uptakes from a new set
of clients that are interested in what we can deliver
it areas.
Speaker 6 (10:29):
How much is that going to be turbocharged by some
of what's coming out of Washington, DC to open up
some of the private as a management field for one KA.
Speaker 7 (10:38):
Accounts coming to I think our view is that it's
probably a ways off for that to really provide a
lot of lyft. But we are incredibly supportive obviously of
bringing our products into channels where there's interest. And I
do think that those groups of investors today who have
not had access to alternatives deserve access to alternatives.
Speaker 6 (11:02):
So right now, one thing that is another theme for
the year has been American exceptionalism and this question of
is it still the best place to invest? And I wonder,
as the co president of Areas, whether you see the
greatest opportunity in the United States or whether you increasingly
are expanding overseas that you see better investment.
Speaker 7 (11:19):
Opportunity well, And so I think holistically we've been looking
to expand geographically for a host of different reasons, just
to give our investors more access points in terms of
geographic diversification and a class diversification. But to actually answer
your question, I do think despite some of the instability
that people may feel here, that most of the investors
(11:41):
that we see around the world are most excited still
about investing in America.
Speaker 6 (11:45):
It's one thing that we've seen sort of this idea
that everything was going to fall apart in the first half,
and suddenly we're talking about a reacceleration, and suddenly the
M and A that everyone had been expecting is coming
back online. We're actually seeing those deals come to place.
How active has it gotten for you? I mean, how
much you see this in your book?
Speaker 7 (12:00):
So I mean, look, the first three to four months
of the year, we're pretty rocky, particularly up through April,
and that really slowed transaction volume everywhere. But I'd say
in most of the asset classes that we're in, everything
is rallied back to where it was pre Liberation Day
and even through that. So credit spreads are incredibly tight,
whether you look at high grade corporates or high yield
(12:22):
or loans. The equity markets are obviously up through highs.
The thing that we're most excited about is actually kind
of a shift for folks that see maybe some of
those markets as expensive into some of our real assets businesses.
So the recovery in real estate, which we think is
real is offering a lot of opportunity for us to
(12:44):
kind of play into the sectors that we like. We
refer to kind of as the new economy real estate.
So that's industrial, that's logistics, it's self storage, it's multifamily,
and we're seeing, we talked about it for a moment earlier,
a lot of investment in the infrastructure space, whether it's
additional or toward digital.
Speaker 6 (13:01):
How much is that predicated on the idea of FED
rate cuts or how much is that completely independent in
a sort of secular bed on some sort of shift
in the economy.
Speaker 7 (13:09):
I don't think it's particularly you know, reliant on rate cuts.
I think rate cuts help equity more than it helps
credit lending businesses.
Speaker 5 (13:18):
So our own.
Speaker 7 (13:19):
View is the yield curve is probably over predicting cuts.
I frankly think the economy here is pretty good, and policy,
while it's a bit restrictive, doesn't seem to be slowing
too much down here in the States. So transaction activities
picking up, and valuations, as I mentioned, have recovered in
(13:40):
almost every asset class. So I do think we'll see
a slow decrease here in rates to try to provide
some relief and keep the economic growth that's slowed growing.
But my own view is I don't think rates ring
it down as quickly as maybe you're reading about in
the newspaper.
Speaker 6 (13:56):
So I have a feeling I know how you're going
to answer, But what concerns you more some sort of
downturn of the next six months or some sort of
reacceleration in inflation.
Speaker 7 (14:03):
The ladder the ladder, I mean, I think we see
the economy as good, although the growth has slowed, and
that's partially a result of rate increases by design to
obviously try to deal with inflation. But I think that
the real scary moment is that if you see a
reignite of inflation and the FIT has to really dramatically
rethink their policy, which I think has been one two
(14:25):
leave rates where they are, slash, reduce them a bit,
which is obviously going to accommodate more growth and more
rise and valuation.
Speaker 2 (14:32):
Stay with us multile impex. Savannah's coming up off to this.
Speaker 6 (14:44):
I I'm here with Governor Ned Lamont of the Great
State of Connecticut in this October is that what Anne
Marie called it in Connecticut in the Delmar Harbor and Governor,
thank you so much for being with us. I want
to start with something that's an increasingly hot topic. We're
here at a leader of businesses, with the leaders of
businesses who oversee huge portfolios of money.
Speaker 1 (15:07):
How is governor, do you keep.
Speaker 6 (15:09):
Attracting this type of business to a state while providing
some of the social services and other expenses that cause
taxes to go up.
Speaker 8 (15:19):
Well, the folks here at the Greenwich Economic Forum are
really important to the state, and the fintech sector, the
financial services sector a big piece of our economy. We're
part of the New York City financial ecosystem. I think
what they like here is a little bit of certainty, instability.
They sort of know where the state's going to go.
Are taxes a little bit less and it's not a
(15:40):
bad lifestyle.
Speaker 6 (15:42):
Are you concerned about what would happen if, say there
is a changeover in the leadership in New York City,
Let's say mayoral candidate Zoron Mumdanie does win and implement
some of the policies that he puts out there. Are
you concerned about the ramifications for a place like Greenwich
truly relies on the ecosystem of the t state region
a little bit.
Speaker 8 (16:02):
New York City is the financial capital of the world,
and we're a big piece of it here as evidence
of the economic form, and I want to make sure
that the next mayor understands how important New York City
is to that system and that's important to Connecticut.
Speaker 6 (16:17):
How confront are you about who the leader is in
the Democratic Party right now? Do you have a sense
of where the leadership really is coming from?
Speaker 8 (16:25):
Governors? Okay, I'm a little loaded for bear on that.
I like governors. Governors have to get stuff done. Voters
have to balance a budget, they have to do it
on time. Governors can't shut down a government. Governors are
sort of the opposite of what you see going on
to Washington. I think on both sides ale, but in
our case, the Democrats sees real leadership coming from the governors.
Speaker 5 (16:46):
But don't ask me to ask names.
Speaker 6 (16:47):
Well, but I'm wondering, though, how does a governor take
that leadership when things are shut down in Washington, DC,
And it seems like there's a real fissure right now
in the party and tactics in approach in platform.
Speaker 8 (17:01):
I can tell you the governor's incredibly frustrated. Democrats are
louder about it than Republicans. You know, we balance our budget,
we do it based upon some assumptions in terms of
what our relationship is with the federal government. If they
pull the rug out from under you every week, seems
to be happening right now, it makes it very difficult
for that certainty of stability that the people in this room.
Speaker 6 (17:21):
Like, how much have you seen actual ramifications from the
government shutdown in the form of funding that isn't coming through.
Speaker 8 (17:30):
It's not my first rodeo with these Trump shutdowns. So
we went through all of our commissioners. We saw what's
it most at risk? Where do you have reserves with
which is women, infant and children probably only had a
week it's worth of reserve there. So we've figured out
how we backstop that snap, which is you know, food benefits.
Speaker 5 (17:48):
That's the end of this month.
Speaker 8 (17:49):
So we're watching very carefully where the risk is and
i can't make up all the shortfall, but I'm trying
my best to help out the most vulnerable.
Speaker 6 (17:56):
Well, how long do you have reserves to cover things?
In other words, does funding run out? Should this shutdown
continue for a long period of time.
Speaker 8 (18:05):
End of this month, you know, snap Benefits is probably
seventy five million dollars a month. I cannot make up
that shortfall. So if the federal government walks away, that's tough.
If we had assurance the federal government is going to backstop,
if we had to help it out for a couple
of months and we'll get paid back, that's something else.
Speaker 5 (18:22):
We have none of that assurance.
Speaker 6 (18:23):
I guess I want to go back to the idea
of leadership right now because we are beginning the midterm
election cycle, and I wonder, as a Democrat in your
second term as governor, how much do you feel allegiance
to the Democratic Party versus something else, a MorphOS that's
coming that doesn't necessarily have a label.
Speaker 8 (18:42):
Well, as governor, you feel strong allegiance to your state.
Speaker 5 (18:45):
I'm a homer for Connecticut.
Speaker 8 (18:47):
I'm Team Connecticut, and you know, Republican or Democrat, I
try and get stuff done. Personally speaking, is I look
at a lot of the Civil War down of Washington, DC,
and I look at LA and I look at Chicago.
You know, I do think it's important that the Democratic
governors stand and stand and speak with one voice, that
you know what we need from the federal government in
(19:08):
terms of a reliable partner.
Speaker 6 (19:10):
How much are you concerned about some of the images
that we're seeing with the National Guard going into places
like Chicago and San Francisco and Portland and really raising
a question about whether it's going to be the States
versus the federal government.
Speaker 8 (19:24):
Right Dally will be speaking again. Remember a year or
two ago you was talking about civil war. Will you go, oh, Ray,
come on, it's a little bit unnerving if you see
those images right now. I talked to General Yvon, the
head of the Connecticut Guard. We're very careful, I said,
any inquiries from the federal government, I don't know. We
just sent our guard to Djibouti, not to Chicago. I
feel pretty good about.
Speaker 1 (19:45):
That going forward.
Speaker 6 (19:47):
What is your plan to try to keep businesses here
and attract them to the Northeast given the exodus that
has gone to Florida to other places have lower taxes.
Speaker 8 (19:56):
We are speeding up our rail system from say Greenwich
to you know, Grand Central. That'll be ten to fifteen
minutes faster. Working really hard to make sure, you know,
you can get the workforce you need. And again, we
haven't raised taxes in seven years, we've balanced the budget.
I think that type of stability is pretty helpful.
Speaker 1 (20:13):
Do you think that taxes need to come down?
Speaker 6 (20:15):
Do you think that that's an instrumental part of trying
to keep attracting businesses and compete with other states.
Speaker 8 (20:23):
Well, I'm a governor, so I can't over promise. Everybody
running against me is always say they're going to eliminate
the income tax in the state of Connecticut. I think
what's more important to the folks I talk to is
what's this state going to look like one year and
five years from now? Do I want to be here?
Because I'm making a five year bet. We haven't raised
taxes at all. I've cut them for middle class folks.
I think that's a good balance going forward.
Speaker 1 (20:44):
What is your number one hope for the state?
Speaker 6 (20:46):
What is your number one sort of policy platform that
you're hoping to get forward over the next one to
five years.
Speaker 5 (20:53):
I need housing.
Speaker 8 (20:54):
You know, for the first time in a long time,
a lot of young people are moving out here. Like
the lifestyle. We're pretty good as a suburban lifestyle. Rebuilding
our cities. You know, these are our cities. We're fifty
percent bigger fifty years ago. Now they're growing again where
young people want to be. As I talk to the
businesses and say, is this a place where young people,
young employees want to be, I'm trying to say, yes.
Speaker 6 (21:13):
How much are you participating in the reindustrialization of the
United States? And that's been a big platform that we've
seen overall. Is that something that you're trying to attract
to the state as well.
Speaker 8 (21:24):
Yeah, I'd like to think of us as a silicon
valley of manufacturing. We do a lot of complicated stuff
like submarines and jet engines and choppers, and they are
growing fast. That's the sort of the heart of our
economy in the northern part of the state. But you
know that's changing too. It's getting increasingly energy intensive. So
I'm going to bring down the price of electricity as
best I can and make sure they have the workforce.
(21:45):
It's all sort of an AI computerized workforce.
Speaker 2 (21:48):
Now, stay with us multiple impex. Savanna's coming up off
to this. Let's talk about the government shut down. I'm
pleased to say that joining us now is the Senator
from Louisiana, the Republican Chafre of the Senate Health, Education,
(22:09):
Labor and Pensions Committee, Senator Bill Cassidy joins us now
for more. Senator, welcome to the program, Sir, welcome back.
I should say there is a take on Wall Street
that we've seen this movie before, that we get to
the inevitable pressure points and the government reopens. You've done
this for a long time, You've had this seat for
ten years, Senator. Does it feel different this time?
Speaker 3 (22:30):
It feels a.
Speaker 9 (22:30):
Little bit different because there's a complete breakdown of trust.
Chuck Schumer, obviously you get ended tomorrow if he wants
to end it, but he doesn't trust the president that
said Chuck Schumer could end this tomorrow. I'm hoping that
he does, and I'm hoping it doesn't take a lot
of pain from the American people in order to get
him to do so.
Speaker 4 (22:48):
Is there a breakthrough the fact that in Good Morning, Senator,
that it does seem like both sides, at least at
this point want to talk about talking as political put it,
that the President is coming out and saying maybe there
could be a compromise comes to healthcare.
Speaker 3 (23:02):
Yeah, absolutely.
Speaker 9 (23:05):
You know, it's better to jawge all than the world wars.
Winston Churchill once said, so let's go ahead and start
talking that said, Republicans have suggested a seven week extension
of the current budget to to allow dialogue to continue,
and that's commonly done. As Chuck Schumer points out, it
happened thirteen times under Joe Biden, and so that seven
weeks kept the government open, allowed us to continue to negotiate.
(23:28):
So I think there's something else that Schumer's thinking about.
Not quite sure what it is, but I'd rather be
talking than kind of sitting in our own corners.
Speaker 4 (23:35):
What is going to happen though at the end of
the year when we get this premium.
Speaker 9 (23:39):
Hike, Well, first, we don't know what premium mic is
going to occur, let's just say that. But secondly, we've
got to address the fact that the Affordable Care Act
has become the Unaffordable Care Act, in which it takes
huge subsidies in order to continue to make those policies
affordable to Americans.
Speaker 3 (24:00):
That's wrong. We've got to.
Speaker 9 (24:01):
Roll that back to a point where it's still affordable
to Americans, but it doesn't require these huge subsidies. This
is not sustainable. But by the way, it's not just
me saying this. The Washington Post had an editorial about
how the Affordable Care Act is no longer affordable. So
I think now might be the time. What can we
do to help the American public lower health care costs
(24:23):
in a way which is not just for the exchanges
but for those in the kind of private markets as well.
Speaker 4 (24:28):
Could you get a compromise like that before the end
of the year.
Speaker 9 (24:32):
I sure hope so, But first you got to reopen
the government.
Speaker 3 (24:36):
We're actually asking for you.
Speaker 5 (24:38):
How can we do this? How can we do that?
Speaker 9 (24:39):
The government's shut down, so we can't get some of
the information. The seven week extension of the current budget
allows that to happen, and so I'd ask Schumer to
reopen the government in the meantime. I'm certainly committed to
how we get lower healthcare costs for all Americans. That's
what I've been doing my whole life, and so let's
get on it.
Speaker 1 (24:56):
Senator.
Speaker 4 (24:57):
When it comes to moderate Democrats, do you see any
willingness some of them to join the three that we
have seen sign up and vote for a clear stopgap
funding measure, And that's.
Speaker 9 (25:07):
Spoken to any of them personally, you'd like to think
so one more time, We've just asked for a seven
week extension of the current budget, which was done thirteen
times under Joe Biden, and so so I would hope
they would because this is inflicting pain on the American people.
But we could be talking with each other without a shutdown.
I think this is a political response by Schumer to
(25:30):
pressure from his left wing, but it should be pressure
from the American people keeping the government open while we
continue to work the lower healthcare cost.
Speaker 2 (25:37):
A Senator of the White House is still operational, and
if they're making moves, I wanted to squeeze this in
because I know you're a busy man. This morning, Trilogy
Metals in early training this morning is hired by more
than two hundred percent. The announcement that the US will
be taking a ten percent stake in the Canadian Minerals
Explorer leading to a big rally on the stock. Senator,
can you give me your opinion, your perspective on what
(25:59):
you think of the party moving towards something that smells
a little bit like central planning.
Speaker 9 (26:06):
Yeah, I'm a little bit personally concerned about state owned
enterprises because it's a slippery slope. At first, you're a
passive partner. It's one thing to have a position in
the stock market or it's another thing to have a time.
Speaker 1 (26:16):
Exit after TARP.
Speaker 9 (26:18):
There are some positions that the federal government had that
was a time exit. That's okay, But having a long
term interest, I think there'll be a future Democratic president
who will be tempted to go a little bit further.
We should definitely get a return on our investment if
we end up bailing somebody out. Absolutely, But on the
other hand, I'm a little bit nervous about taking positions
(26:38):
that go beyond a time exit.
Speaker 4 (26:40):
Well, what do you make of the fact that the
Republican Party, not the Democratic Party, is the party doing
this and supporting state capitalism.
Speaker 9 (26:48):
Yeah, so I think the president. I can't speak for
the president, and the Republican Party is a diverse organization.
I'll say that as well. I'm just speaking for Bilcassidy,
and I am a conservative, and I am a little
bit nervous when government ends up owning the means of production.
When that happens, sometimes the government ends up dictating to
the means of production what to do, for example, keep
(27:09):
employment up for political reasons. I'm nervous about that. Maybe
the President's got a great plan. It's one thing to
be a passive partner to own stock, we have a
time dexit, etc. Another to be active. Now, I will
say the president's specifically saying will not take a position
on the board. That's my understanding. That's a good thing,
that's a really good thing. But still I'll put all
those caveats out there.
Speaker 4 (27:30):
As a senator, does it concern you that the executive
branch is going one way and not consulting you and
your colleagues.
Speaker 9 (27:38):
Ultimately, we have to recognize that executive orders have been
put there, and the presidents can do kind of what
they want with an executive order. But obviously the problem
with that is that when a new president comes in,
she or he so far just he can immediately reverse
all those So you want legislation that will actually put
in place for certainty for business and for labor, that
(27:59):
plan for the economy that goes forward. So everybody understands
executive orders are powerful, but they're temporary. I would suggest
that we're going to have long term certainty. We need
Congress to William.
Speaker 2 (28:12):
Senator before you go, can Tiger's football get back on track?
Speaker 5 (28:16):
Okay?
Speaker 2 (28:16):
Who can Tiger's football get back on track?
Speaker 5 (28:19):
Oh?
Speaker 9 (28:19):
My gosh, I certainly hope, So I certainly hope. So
we have a good game that's coming up with South Carolina,
so I'm always hopeful for the Tigers.
Speaker 3 (28:29):
Go Tigers.
Speaker 2 (28:31):
This is the Bloomberg Savandons podcast, bringing you the best
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live on Bloomberg TV weekday mornings from six am to
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Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:11):
This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
with Lisa Bromwitz and Amrie Hordern. Join us each day
for insight from the best in markets, economics, and geopolitics
from our global headquarters in New York City. We are
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anywhere else you listen, and as always on the Bloomberg
(00:34):
Terminal and the Bloomberg Business app Danny if you had
any research writing. Everyone's on the lookout for signs of
an AI bubble, Yet the market continues to climb the
walls of bubble worries. Joined us now for more ed
Welcome to the program, sir, Two part question, what's the
bubble and what is this?
Speaker 3 (00:51):
Well, at this point, I think we're getting into bubble territory.
For sure. We've got the forward pe of the S
and P five hundred around twenty three, and the peak
during the previous tech bubble in the late nineteen nineties
was twenty five. So we're getting close. But you know,
the earning story has been phenomenally strong, particularly this year
(01:15):
in the first and second quarters. Who would have thought
with all the commotion coming out of Washington, And it
looks us on the third quarter earning season, which is
about to start, is going to be very strong as well.
We're expecting ten percent a year over yere percent change,
So the earnings are actually there to continue to drive
this bull market higher. But I wouldn't want to see
(01:38):
the valuation multiple go any higher than it is right now.
Speaker 2 (01:41):
At that earning story part of the reason, part of
many reasons why a lot of people are still looking
for the potential mounts up. Typically, a mounts up is
a risk people want to own. Is it a risk
you want to own? And are you willing to keep
your bets on this market quite concentrated to take advantage
of it?
Speaker 3 (01:57):
Well, you know, I think it hasn't been all valuation
And the reality is again has been a earnings lead
melt up, which is fine. I don't have a problem
with that, and that's really not a melt up. The
fundamentals are actually there. And oh, by the way, if
this whole AI thing turns out to be a lot
of hype and the companies that are spending all this
(02:19):
money on AI infrastructure, have to kind of slow it down,
and it's not exactly the end of the world. I mean,
these companies are using cash flow to finance this. It's
not like nineteen ninety nine where telecommunications companies did seller
financing and there was a tremendous amount of debt because
to do that they borrowed in the jump bond market.
(02:40):
So there's a lot of credit in the bubble back then.
This time around, it's cash flow, and if they have
to slow it down, their profits are suddenly going to
look even better.
Speaker 4 (02:52):
Well, and two of those companies, AMD and open Ai.
The amdco Julie Sue said this yesterday. The more open
ai deploys, the more revenue get and they get to
share the upside. Does it concern you that this is
so circular?
Speaker 3 (03:06):
Yeah, well, you know, I'm thinking of putting a few
billion dollars into open ai and doing business with them.
Everybody's playing the game here, So yeah, the circularity of
it has got the market's really spooked. The market's got
spooked about AI back in January, remember with deep seek,
and so this is kind of the latest fear that
(03:29):
we haven't seen anywhere near the kind of correction we
saw with Deep Seek. I'm not that concerned about it.
I think there is a lot of capital spending going on,
and these companies, you know, unless they're misinformed, which I
kind of doubt it. These hyperscalers, they know what's going on,
and they know that the capacity of their system is
(03:52):
getting stretched, is getting pushed by everybody using AI and
try to figure out how to use it.
Speaker 4 (04:00):
Bezos said this week as well that investors are just
having a hard time in the middle of excitement to
distinguish between the good ideas and the bad ideas. How
do you distinguish between the good and the bad?
Speaker 3 (04:13):
Well, I'm no better at it than anybody else's At
this point, I'm going to assume that the hyperscalers, who
basically are Magnificent seven kind of companies, know what they're doing,
and they are you know, a lot of the investments
are data centers. It's not like you know, right now,
there's a lot of mystery about where the spending is going,
(04:35):
and the data centers but themselves and that are actually
the data is available monthly from the construction report that
the government used to put out when they was open
But that showed that data centers were running around forty
billion dollars, and that's at an annual rate. That's times twelve.
(04:57):
That's not a terrible number. Now, of course, once you
build the actual structure, you've got to stuff it with
all these semiconductor chiefs, and that that money is being spent.
I don't think this is money down the drain. I
think you know, this is for real.
Speaker 2 (05:14):
And there is an additional dimension that makes this rather
strange that we have the US government picking winners at
the same time intow Trilogy Metals, we have open AI
picking winners too. We saw evidence of that in the
last twenty four hours. Does that change your approach to
start picking at.
Speaker 3 (05:29):
Well? You know, my attitude towards Washington is, it's amazing
how well the economy does despite Washington. It's amazing how
well the stock market does despite Washington. I don't I
don't like the state capitalism, as you rightly called it.
It doesn't it's not really necessary. The free market should
be able to decide who the winners are and who
(05:51):
the losers are. So it's more more a noise coming
out of Washington. The signal we're really seeing the fundamentals
as the economy continues to be extremely resilient. That's really
the word for the economy. The past four years, we've
had the most widely anticipated recession of all times. That
(06:12):
didn't happen. I didn't think it would happen. And I
think that's why the evaluation multiples are high, and that's
why earning this so remarkably strong.
Speaker 2 (06:21):
Stay with us, multilintex Savanta's coming up off to this.
Speaker 5 (06:33):
Here.
Speaker 1 (06:34):
It is not a government shutdown.
Speaker 6 (06:35):
It's a beautiful morning in front of a beautiful waterfront.
And I'm here with Kip Deevere, who's the co president
of Areas Management, which oversees almost six hundred billion dollars,
And thank you so much for being with us here.
I do want to start where John was talking about
this idea of the tech build out. How much private
asset managers have been instrumental in that. I'm just wondering
(06:56):
how much you are continuing to accelerate your investments into
digital infrastructure, given that everyone is worried about an AI bubble?
Are we investing too much? Are we seeing the fruitions
of our money?
Speaker 7 (07:06):
Sure, so we've sort of transitioned that business to be
broader in its scope. Historically we've been largely a lender
to the space, so a senior lender and a mezzanine
investor as well through our dead infrastructure business. We did
a recent acquisition that you may be aware of, a
business focused on industrial logistics investing mostly in Japan, but
(07:27):
it's global and they have real digital infrastructure development capability,
so we've started to roll that out. We've done two
completed projects now in Tokyo.
Speaker 5 (07:37):
We have a third underway.
Speaker 7 (07:39):
Just on the outskirts of London, so we're getting more
active on the development front. I think that the measured
approach that we've taken getting into the market doesn't frankly
put our investors at risk right Our goal is to
generate great returns for our investors, So we think if
you stay in tricky markets, hard to find entitle land,
(08:00):
and then you're building really high quality facilities, which we
think we are. Because we have an in house team
that came with the acquisition, it's pretty easy for us
to find great leases from investment grade tenants like viper scalers.
Speaker 6 (08:13):
Are you passing up opportunities that concern you? Do you
see things out there that I.
Speaker 7 (08:17):
Think we're selective, and I think if you look historically
in areas like this over the last twenty or thirty years,
typically when this much capacity comes online, some of it,
at the end of the day is going to have
to be marginal.
Speaker 1 (08:30):
Right.
Speaker 7 (08:31):
These trends tend to lead to overbuilds in certain places.
So I think us being selective and being measured and
what we build is super super important.
Speaker 6 (08:39):
One thing that we've seen over the past five years
is an incredible consolidation of market capitalization of the biggest
asset managers, the biggest private asset managers. I'm thinking of
the ones that you won't name, like Apollo and KKR,
and of course areas defintely named. I'm just wondering whether
you think this is the sort of path to follow,
that you think the biggest are going to only get
bigger and dominate this book.
Speaker 7 (09:00):
We've believed since the beginning Frankly of the company, the
more scaled platform, both in terms of diversity of asset
classes but also diversity of geography is it was a
huge advantage. So we think we get better information to
participate in more markets. We probably do better due diligence
because we have better access points. So I think the
(09:22):
both investing advantages but also the capital raising advantages are
real and you'll see you see that with the growth
of Varies, with the growth of Apollo, and growth of
all the Blackstone KKR, all these folks that have consolidated
share for you.
Speaker 6 (09:35):
Just actually did see another record year for fundraising, and
it feels like it's accelerating with respect to how easily
it is to really get interest from investors.
Speaker 1 (09:45):
What's sort of been the tipping point? Where are you
seeing that interest really coming from?
Speaker 7 (09:48):
Yeah, I mean, we grew up raising most of the
capital from the firm from institutions, so it was pensions,
sovereign wealth funds, et cetera, et cetera. And we've really
diversified the way that we raise capital today. So I
would say an increased focus on the wealth channel for sure,
an increase focus on what our insurance clients are looking
(10:10):
for because they're very challenged in a tight spread, lower
rate environment. So it's just become more and more diverse.
And I think is we're able to educate and offer
access to investors that didn't have access to certain products before.
There's just a lot of uptakes from a new set
of clients that are interested in what we can deliver
it areas.
Speaker 6 (10:29):
How much is that going to be turbocharged by some
of what's coming out of Washington, DC to open up
some of the private as a management field for one KA.
Speaker 7 (10:38):
Accounts coming to I think our view is that it's
probably a ways off for that to really provide a
lot of lyft. But we are incredibly supportive obviously of
bringing our products into channels where there's interest. And I
do think that those groups of investors today who have
not had access to alternatives deserve access to alternatives.
Speaker 6 (11:02):
So right now, one thing that is another theme for
the year has been American exceptionalism and this question of
is it still the best place to invest? And I wonder,
as the co president of Areas, whether you see the
greatest opportunity in the United States or whether you increasingly
are expanding overseas that you see better investment.
Speaker 7 (11:19):
Opportunity well, And so I think holistically we've been looking
to expand geographically for a host of different reasons, just
to give our investors more access points in terms of
geographic diversification and a class diversification. But to actually answer
your question, I do think despite some of the instability
that people may feel here, that most of the investors
(11:41):
that we see around the world are most excited still
about investing in America.
Speaker 6 (11:45):
It's one thing that we've seen sort of this idea
that everything was going to fall apart in the first half,
and suddenly we're talking about a reacceleration, and suddenly the
M and A that everyone had been expecting is coming
back online. We're actually seeing those deals come to place.
How active has it gotten for you? I mean, how
much you see this in your book?
Speaker 7 (12:00):
So I mean, look, the first three to four months
of the year, we're pretty rocky, particularly up through April,
and that really slowed transaction volume everywhere. But I'd say
in most of the asset classes that we're in, everything
is rallied back to where it was pre Liberation Day
and even through that. So credit spreads are incredibly tight,
whether you look at high grade corporates or high yield
(12:22):
or loans. The equity markets are obviously up through highs.
The thing that we're most excited about is actually kind
of a shift for folks that see maybe some of
those markets as expensive into some of our real assets businesses.
So the recovery in real estate, which we think is
real is offering a lot of opportunity for us to
(12:44):
kind of play into the sectors that we like. We
refer to kind of as the new economy real estate.
So that's industrial, that's logistics, it's self storage, it's multifamily,
and we're seeing, we talked about it for a moment earlier,
a lot of investment in the infrastructure space, whether it's
additional or toward digital.
Speaker 6 (13:01):
How much is that predicated on the idea of FED
rate cuts or how much is that completely independent in
a sort of secular bed on some sort of shift
in the economy.
Speaker 7 (13:09):
I don't think it's particularly you know, reliant on rate cuts.
I think rate cuts help equity more than it helps
credit lending businesses.
Speaker 5 (13:18):
So our own.
Speaker 7 (13:19):
View is the yield curve is probably over predicting cuts.
I frankly think the economy here is pretty good, and policy,
while it's a bit restrictive, doesn't seem to be slowing
too much down here in the States. So transaction activities
picking up, and valuations, as I mentioned, have recovered in
(13:40):
almost every asset class. So I do think we'll see
a slow decrease here in rates to try to provide
some relief and keep the economic growth that's slowed growing.
But my own view is I don't think rates ring
it down as quickly as maybe you're reading about in
the newspaper.
Speaker 6 (13:56):
So I have a feeling I know how you're going
to answer, But what concerns you more some sort of
downturn of the next six months or some sort of
reacceleration in inflation.
Speaker 7 (14:03):
The ladder the ladder, I mean, I think we see
the economy as good, although the growth has slowed, and
that's partially a result of rate increases by design to
obviously try to deal with inflation. But I think that
the real scary moment is that if you see a
reignite of inflation and the FIT has to really dramatically
rethink their policy, which I think has been one two
(14:25):
leave rates where they are, slash, reduce them a bit,
which is obviously going to accommodate more growth and more
rise and valuation.
Speaker 2 (14:32):
Stay with us multile impex. Savannah's coming up off to this.
Speaker 6 (14:44):
I I'm here with Governor Ned Lamont of the Great
State of Connecticut in this October is that what Anne
Marie called it in Connecticut in the Delmar Harbor and Governor,
thank you so much for being with us. I want
to start with something that's an increasingly hot topic. We're
here at a leader of businesses, with the leaders of
businesses who oversee huge portfolios of money.
Speaker 1 (15:07):
How is governor, do you keep.
Speaker 6 (15:09):
Attracting this type of business to a state while providing
some of the social services and other expenses that cause
taxes to go up.
Speaker 8 (15:19):
Well, the folks here at the Greenwich Economic Forum are
really important to the state, and the fintech sector, the
financial services sector a big piece of our economy. We're
part of the New York City financial ecosystem. I think
what they like here is a little bit of certainty, instability.
They sort of know where the state's going to go.
Are taxes a little bit less and it's not a
(15:40):
bad lifestyle.
Speaker 6 (15:42):
Are you concerned about what would happen if, say there
is a changeover in the leadership in New York City,
Let's say mayoral candidate Zoron Mumdanie does win and implement
some of the policies that he puts out there. Are
you concerned about the ramifications for a place like Greenwich
truly relies on the ecosystem of the t state region
a little bit.
Speaker 8 (16:02):
New York City is the financial capital of the world,
and we're a big piece of it here as evidence
of the economic form, and I want to make sure
that the next mayor understands how important New York City
is to that system and that's important to Connecticut.
Speaker 6 (16:17):
How confront are you about who the leader is in
the Democratic Party right now? Do you have a sense
of where the leadership really is coming from?
Speaker 8 (16:25):
Governors? Okay, I'm a little loaded for bear on that.
I like governors. Governors have to get stuff done. Voters
have to balance a budget, they have to do it
on time. Governors can't shut down a government. Governors are
sort of the opposite of what you see going on
to Washington. I think on both sides ale, but in
our case, the Democrats sees real leadership coming from the governors.
Speaker 5 (16:46):
But don't ask me to ask names.
Speaker 6 (16:47):
Well, but I'm wondering, though, how does a governor take
that leadership when things are shut down in Washington, DC,
And it seems like there's a real fissure right now
in the party and tactics in approach in platform.
Speaker 8 (17:01):
I can tell you the governor's incredibly frustrated. Democrats are
louder about it than Republicans. You know, we balance our budget,
we do it based upon some assumptions in terms of
what our relationship is with the federal government. If they
pull the rug out from under you every week, seems
to be happening right now, it makes it very difficult
for that certainty of stability that the people in this room.
Speaker 6 (17:21):
Like, how much have you seen actual ramifications from the
government shutdown in the form of funding that isn't coming through.
Speaker 8 (17:30):
It's not my first rodeo with these Trump shutdowns. So
we went through all of our commissioners. We saw what's
it most at risk? Where do you have reserves with
which is women, infant and children probably only had a
week it's worth of reserve there. So we've figured out
how we backstop that snap, which is you know, food benefits.
Speaker 5 (17:48):
That's the end of this month.
Speaker 8 (17:49):
So we're watching very carefully where the risk is and
i can't make up all the shortfall, but I'm trying
my best to help out the most vulnerable.
Speaker 6 (17:56):
Well, how long do you have reserves to cover things?
In other words, does funding run out? Should this shutdown
continue for a long period of time.
Speaker 8 (18:05):
End of this month, you know, snap Benefits is probably
seventy five million dollars a month. I cannot make up
that shortfall. So if the federal government walks away, that's tough.
If we had assurance the federal government is going to backstop,
if we had to help it out for a couple
of months and we'll get paid back, that's something else.
Speaker 5 (18:22):
We have none of that assurance.
Speaker 6 (18:23):
I guess I want to go back to the idea
of leadership right now because we are beginning the midterm
election cycle, and I wonder, as a Democrat in your
second term as governor, how much do you feel allegiance
to the Democratic Party versus something else, a MorphOS that's
coming that doesn't necessarily have a label.
Speaker 8 (18:42):
Well, as governor, you feel strong allegiance to your state.
Speaker 5 (18:45):
I'm a homer for Connecticut.
Speaker 8 (18:47):
I'm Team Connecticut, and you know, Republican or Democrat, I
try and get stuff done. Personally speaking, is I look
at a lot of the Civil War down of Washington, DC,
and I look at LA and I look at Chicago.
You know, I do think it's important that the Democratic
governors stand and stand and speak with one voice, that
you know what we need from the federal government in
(19:08):
terms of a reliable partner.
Speaker 6 (19:10):
How much are you concerned about some of the images
that we're seeing with the National Guard going into places
like Chicago and San Francisco and Portland and really raising
a question about whether it's going to be the States
versus the federal government.
Speaker 8 (19:24):
Right Dally will be speaking again. Remember a year or
two ago you was talking about civil war. Will you go, oh, Ray,
come on, it's a little bit unnerving if you see
those images right now. I talked to General Yvon, the
head of the Connecticut Guard. We're very careful, I said,
any inquiries from the federal government, I don't know. We
just sent our guard to Djibouti, not to Chicago. I
feel pretty good about.
Speaker 1 (19:45):
That going forward.
Speaker 6 (19:47):
What is your plan to try to keep businesses here
and attract them to the Northeast given the exodus that
has gone to Florida to other places have lower taxes.
Speaker 8 (19:56):
We are speeding up our rail system from say Greenwich
to you know, Grand Central. That'll be ten to fifteen
minutes faster. Working really hard to make sure, you know,
you can get the workforce you need. And again, we
haven't raised taxes in seven years, we've balanced the budget.
I think that type of stability is pretty helpful.
Speaker 1 (20:13):
Do you think that taxes need to come down?
Speaker 6 (20:15):
Do you think that that's an instrumental part of trying
to keep attracting businesses and compete with other states.
Speaker 8 (20:23):
Well, I'm a governor, so I can't over promise. Everybody
running against me is always say they're going to eliminate
the income tax in the state of Connecticut. I think
what's more important to the folks I talk to is
what's this state going to look like one year and
five years from now? Do I want to be here?
Because I'm making a five year bet. We haven't raised
taxes at all. I've cut them for middle class folks.
I think that's a good balance going forward.
Speaker 1 (20:44):
What is your number one hope for the state?
Speaker 6 (20:46):
What is your number one sort of policy platform that
you're hoping to get forward over the next one to
five years.
Speaker 5 (20:53):
I need housing.
Speaker 8 (20:54):
You know, for the first time in a long time,
a lot of young people are moving out here. Like
the lifestyle. We're pretty good as a suburban lifestyle. Rebuilding
our cities. You know, these are our cities. We're fifty
percent bigger fifty years ago. Now they're growing again where
young people want to be. As I talk to the
businesses and say, is this a place where young people,
young employees want to be, I'm trying to say, yes.
Speaker 6 (21:13):
How much are you participating in the reindustrialization of the
United States? And that's been a big platform that we've
seen overall. Is that something that you're trying to attract
to the state as well.
Speaker 8 (21:24):
Yeah, I'd like to think of us as a silicon
valley of manufacturing. We do a lot of complicated stuff
like submarines and jet engines and choppers, and they are
growing fast. That's the sort of the heart of our
economy in the northern part of the state. But you
know that's changing too. It's getting increasingly energy intensive. So
I'm going to bring down the price of electricity as
best I can and make sure they have the workforce.
(21:45):
It's all sort of an AI computerized workforce.
Speaker 2 (21:48):
Now, stay with us multiple impex. Savanna's coming up off
to this. Let's talk about the government shut down. I'm
pleased to say that joining us now is the Senator
from Louisiana, the Republican Chafre of the Senate Health, Education,
(22:09):
Labor and Pensions Committee, Senator Bill Cassidy joins us now
for more. Senator, welcome to the program, Sir, welcome back.
I should say there is a take on Wall Street
that we've seen this movie before, that we get to
the inevitable pressure points and the government reopens. You've done
this for a long time, You've had this seat for
ten years, Senator. Does it feel different this time?
Speaker 3 (22:30):
It feels a.
Speaker 9 (22:30):
Little bit different because there's a complete breakdown of trust.
Chuck Schumer, obviously you get ended tomorrow if he wants
to end it, but he doesn't trust the president that
said Chuck Schumer could end this tomorrow. I'm hoping that
he does, and I'm hoping it doesn't take a lot
of pain from the American people in order to get
him to do so.
Speaker 4 (22:48):
Is there a breakthrough the fact that in Good Morning, Senator,
that it does seem like both sides, at least at
this point want to talk about talking as political put it,
that the President is coming out and saying maybe there
could be a compromise comes to healthcare.
Speaker 3 (23:02):
Yeah, absolutely.
Speaker 9 (23:05):
You know, it's better to jawge all than the world wars.
Winston Churchill once said, so let's go ahead and start
talking that said, Republicans have suggested a seven week extension
of the current budget to to allow dialogue to continue,
and that's commonly done. As Chuck Schumer points out, it
happened thirteen times under Joe Biden, and so that seven
weeks kept the government open, allowed us to continue to negotiate.
(23:28):
So I think there's something else that Schumer's thinking about.
Not quite sure what it is, but I'd rather be
talking than kind of sitting in our own corners.
Speaker 4 (23:35):
What is going to happen though at the end of
the year when we get this premium.
Speaker 9 (23:39):
Hike, Well, first, we don't know what premium mic is
going to occur, let's just say that. But secondly, we've
got to address the fact that the Affordable Care Act
has become the Unaffordable Care Act, in which it takes
huge subsidies in order to continue to make those policies
affordable to Americans.
Speaker 3 (24:00):
That's wrong. We've got to.
Speaker 9 (24:01):
Roll that back to a point where it's still affordable
to Americans, but it doesn't require these huge subsidies. This
is not sustainable. But by the way, it's not just
me saying this. The Washington Post had an editorial about
how the Affordable Care Act is no longer affordable. So
I think now might be the time. What can we
do to help the American public lower health care costs
(24:23):
in a way which is not just for the exchanges
but for those in the kind of private markets as well.
Speaker 4 (24:28):
Could you get a compromise like that before the end
of the year.
Speaker 9 (24:32):
I sure hope so, But first you got to reopen
the government.
Speaker 3 (24:36):
We're actually asking for you.
Speaker 5 (24:38):
How can we do this? How can we do that?
Speaker 9 (24:39):
The government's shut down, so we can't get some of
the information. The seven week extension of the current budget
allows that to happen, and so I'd ask Schumer to
reopen the government in the meantime. I'm certainly committed to
how we get lower healthcare costs for all Americans. That's
what I've been doing my whole life, and so let's
get on it.
Speaker 1 (24:56):
Senator.
Speaker 4 (24:57):
When it comes to moderate Democrats, do you see any
willingness some of them to join the three that we
have seen sign up and vote for a clear stopgap
funding measure, And that's.
Speaker 9 (25:07):
Spoken to any of them personally, you'd like to think
so one more time, We've just asked for a seven
week extension of the current budget, which was done thirteen
times under Joe Biden, and so so I would hope
they would because this is inflicting pain on the American people.
But we could be talking with each other without a shutdown.
I think this is a political response by Schumer to
(25:30):
pressure from his left wing, but it should be pressure
from the American people keeping the government open while we
continue to work the lower healthcare cost.
Speaker 2 (25:37):
A Senator of the White House is still operational, and
if they're making moves, I wanted to squeeze this in
because I know you're a busy man. This morning, Trilogy
Metals in early training this morning is hired by more
than two hundred percent. The announcement that the US will
be taking a ten percent stake in the Canadian Minerals
Explorer leading to a big rally on the stock. Senator,
can you give me your opinion, your perspective on what
(25:59):
you think of the party moving towards something that smells
a little bit like central planning.
Speaker 9 (26:06):
Yeah, I'm a little bit personally concerned about state owned
enterprises because it's a slippery slope. At first, you're a
passive partner. It's one thing to have a position in
the stock market or it's another thing to have a time.
Speaker 1 (26:16):
Exit after TARP.
Speaker 9 (26:18):
There are some positions that the federal government had that
was a time exit. That's okay, But having a long
term interest, I think there'll be a future Democratic president
who will be tempted to go a little bit further.
We should definitely get a return on our investment if
we end up bailing somebody out. Absolutely, But on the
other hand, I'm a little bit nervous about taking positions
(26:38):
that go beyond a time exit.
Speaker 4 (26:40):
Well, what do you make of the fact that the
Republican Party, not the Democratic Party, is the party doing
this and supporting state capitalism.
Speaker 9 (26:48):
Yeah, so I think the president. I can't speak for
the president, and the Republican Party is a diverse organization.
I'll say that as well. I'm just speaking for Bilcassidy,
and I am a conservative, and I am a little
bit nervous when government ends up owning the means of production.
When that happens, sometimes the government ends up dictating to
the means of production what to do, for example, keep
(27:09):
employment up for political reasons. I'm nervous about that. Maybe
the President's got a great plan. It's one thing to
be a passive partner to own stock, we have a
time dexit, etc. Another to be active. Now, I will
say the president's specifically saying will not take a position
on the board. That's my understanding. That's a good thing,
that's a really good thing. But still I'll put all
those caveats out there.
Speaker 4 (27:30):
As a senator, does it concern you that the executive
branch is going one way and not consulting you and
your colleagues.
Speaker 9 (27:38):
Ultimately, we have to recognize that executive orders have been
put there, and the presidents can do kind of what
they want with an executive order. But obviously the problem
with that is that when a new president comes in,
she or he so far just he can immediately reverse
all those So you want legislation that will actually put
in place for certainty for business and for labor, that
(27:59):
plan for the economy that goes forward. So everybody understands
executive orders are powerful, but they're temporary. I would suggest
that we're going to have long term certainty. We need
Congress to William.
Speaker 2 (28:12):
Senator before you go, can Tiger's football get back on track?
Speaker 5 (28:16):
Okay?
Speaker 2 (28:16):
Who can Tiger's football get back on track?
Speaker 5 (28:19):
Oh?
Speaker 9 (28:19):
My gosh, I certainly hope, So I certainly hope. So
we have a good game that's coming up with South Carolina,
so I'm always hopeful for the Tigers.
Speaker 3 (28:29):
Go Tigers.
Speaker 2 (28:31):
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