Single Best Idea with Tom Keene: Jim Bianco & Scott Ladner

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

In this episode, we feature conversations with Jim Bianco & Scott Ladner.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:14):
A single best idea. The news flow this August is extraordinary.
Of course, Ann Marie Horden in Anchorage. We'll have really
special coverage tomorrow from Alaska on a summit, or as
Tina Fordham said, maybe it's a non summit. We'll have
to see on that. Lindy Fox was wonderful with CFR
in Germany as well, but you know, it'll be interesting

(00:34):
day at tomorrow. It has been an interesting week as well.
One of the high points with Jonathan Ferrell's really informative
interview which let us see a snapshot, if you will,
a movable feast almost of how the Secretary of Treasure
he is thinking, this is mister Bessant, and he was
really quite something about cutting interest rates. There has been

(00:56):
a firestorm of response on Wall Street. Here's Jim Bianco
Bianco Research.

Speaker 1 (01:03):
He basically said, any model suggests that that interest rates
should be cut by one and a half to one
and three quarter percent, I'll come back and say to
you that there's no model that says that if you
have a three percent interest rate, that you should be
cutting interest rates by that much. And John Author's authored
does something about that yesterday, and he'll talk more about that.

(01:25):
That the idea that interest rates should go below the
inflation rate when the inflation rate is this high is unprecedented.
It's never been there when it's been above three percent.
It should stay above the inflation rate by some premium.
And that's why I think that the current funds rate
at four and a quarter to four and a half

(01:45):
is very close to neutral. And that's why I was
saying earlier. If you want to cut interest rates and
the fedies looks like they're going to, you're not going
to get the desired economic growth outcome. You're going to
get an inflationary outcome.

Speaker 2 (02:00):
Biancle there with one view. Let us remind ourselves that
eighteen months ago, almost two years ago, he was courageous
in calling for resilient inflation. He was very lonely in
that call. Since we taped that, we got the PPI
report and it was really something. I can't say enough
about the heat of the research notes coming out after

(02:22):
eight point thirty this morning, high point of the day.
We're going to rip up the script here. Scott Ladner
joined us. He has an incredible career in derivative mathematics
and in trading investment at WA Covia and now on
the Horizon and he came in and I said, what's
up and he said, you know his interns and AI.

(02:45):
This is riveting for every parent battling the modern technology
with their kids. On your children and the effect of
artificial intelligence Scott Ladner Horizon.

Speaker 3 (02:58):
It doesn't look like it actually. That's that's sort of
the peril of AI right now that we're we're starting
to trying to figure out is like like how much
like how much below the surface are some of these
kids getting and are they using it as a crush
the sort of like hide how little they actually know?

Speaker 1 (03:13):
You know?

Speaker 3 (03:13):
This is like it's it's a real thing, and we're
figuring it out in real time, and it's like what
we've seen so far is it's a little bit scary,
Like I don't I don't love what I see right
now out of really really young ones like that twenty
four to twenty five year old. You know, they're still kids,
but they but they know enough still to use it
to be productive. But they're really young ones. I'm worried
right now they're using it too much, too much of a.

Speaker 2 (03:31):
Crouch and Aside there for August and back to school.
We're on podcasts, We're on Apple, we're on Spotify, on
YouTube podcasts. It's single best idea