Single Best Idea with Tom Keene: Gary Gensler

Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature a conversation with Gary Gensler.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, single best idea. Gary
Gensler really something on Wall Street. Just terrific, terrific career,
mostly Goldbyn Sachs, coming out of the University of Pennsylvania,

(00:27):
and then he decided to do public service. It's culminating
as Chairman of Securities Exchange Commission. He's now at the
Massachusetts Institute of Technology, working with the recent Nobel laureate
Simon Johnson. They have a new effort out that I'll
get out on LinkedIn and Twitter here as I can.
But Gary Goensler talking about the abrupt shift to the

(00:50):
Trump SEC from the Biden SEC. Gary Goensler on the
modern technologies, the shadows out there. We talked about private
credit and valuation there, but far more. Gary Gensler on
stable coin.

Speaker 2 (01:06):
Stable coins. Tether was invented early on about ten eleven
years ago to be the equivalent of the poker chip
at the casino. You could use it to move crypto
versus crypto because these large exchanges couldn't get bank accounts,
and so instead you could sidestep any money lawn during

(01:28):
in sanctions. At a quarter of a trillion dollars, it's
starting to be somewhat meaningful. And here's the cool question,
the interesting economic question. Who gets the interest payments, Who
gets the float the three and a half or four
percent on on you know, for every billion dollars, that's
thirty five or forty million dollars of interest, and who
gets that interest. I'd rather have a money market fund

(01:51):
where I get the interest the investor.

Speaker 1 (01:53):
Gary Gonsler diplomatic there I would say about stable coin.
I really want to emphasize this is heated battle right now.
All the other distractions that we have. The Bank of
International Settlements I think has done absolutely brilliant work. I'll
cite the leadership of Raphael our au Er and BIS
and Geneva. Just in the last number of days they

(02:16):
have put out a blistering research paper on stable coin.
And as with ken Rogoff, my book of the Summer
Our Dollar Year Problem, three chapters from Kenneth Rogoff of
Harvard on stable coin, and this all circles back to
avoiding the regular system that we all live in for

(02:37):
criminal activity, and it'll be fascinating to see how that
works out. We continue with mister Gensler on well, the
thing we're all living with I used AI to get
ready for this interview. Gary Gensler on artificial intelligence.

Speaker 2 (02:51):
I would say this, it's one, it's been around at
least ten years, even longer, so it's not just new
with open AI and chat ch two. It's the most
transformative technology of the time. And I find myself thinking
I'm more of the optimist. I think there'll be a
lot of new productivity that comes from this, but also

(03:13):
a lot of changes in the job market. Bloomberg will
be different, Bloomberg Radio maybe not so different all right
at least, but I think it will be very different.
And so I think the US versus China is an
interesting thing. The big hyperscalers, the big you know, Chap,
GBT and Gemini and so forth. Those companies are competing

(03:37):
with China, and China's got well they have deep seek,
but they have something else. They have one point four
billion people, so they have data advantages over We're big,
but we're only three hundred and forty million people.

Speaker 1 (03:48):
Gary Gonsler. We'll try to get that entire interview out
on some form of Bloomberg digital platform. If you're in
the heat wave, please stay cool out there. It can
be dangerous we're on our podcast of course on YouTube podcasts.
This is single best I get