Bitcoin and Beyond

The surging price of the world’s best-known cryptocurrency has made some investors rich and prompted skeptics to point to the excesses of the current bull market. Central bank digital currencies (CBDCs) may offer a surer route to greater financial inclusion, but are policymakers and the public prepared for this potentially radical innovation?

In this Big Picture, Harvard University’s Kenneth Rogoff thinks that the COVID-19 pandemic could accelerate the emergence of CBDCs, and outlines two ways in which monetary policymakers could introduce them. The case for a digital dollar, however, is far from clear-cut, says Barry Eichengreen of the University of California, Berkeley, not least because fear that a digital renminbi will challenge the greenback’s global dominance is overblown. But New York University’s Nouriel Roubini makes the case that CBDCs could replace both an inherently crisis-prone banking system and worthless private cryptocurrencies such as Bitcoin.

Chatham House’s Jim O’Neill is similarly unimpressed by the Bitcoin hype, and explains why cryptocurrencies like it will never be anything more than speculative vehicles. For that reason, says Willem H. Buiter of Columbia University, only those with a robust appetite for risk and the wherewithal to absorb heavy losses should consider investing in them. By contrast, Brian Armstrong of cryptocurrency exchange Coinbase argues that cryptocurrencies with strong consumer-privacy protections should be a key feature of the post-pandemic recovery.

Either way, conclude Katharina Pistor of Columbia Law School and Co-Pierre Georg of the University of Cape Town, central banks may soon need to expand their remit and develop a new regulatory infrastructure to manage both public and private digital currencies.

Why Bitcoin & Crypto Is Not The Future (Ex-Citigroup Global Chief Economist Willem Buiter)

We speak to Willem Buiter, Global Chief Economist at Citigroup (2010-2018). In contrast to our interview with Bitcoin.com founder Roger Ver, Willem Buiter argues Bitcoin and other cryptocurrencies are essentially is an environmentally unfriendly, speculative fiat currency with no use countries trying to evade Western economic sanctions. He also disputes that it can be used as a currency and discusses why there won’t be mass-scale adoption.

Brian Moynihan: Blockchain not Bitcoin

00:01
populism hits the financial markets
00:03
is it a fluke or does it point to
00:05
something deeper this is bloomberg wall
00:07
street week i’m david weston
00:10
this week special contributor larry
00:12
summers of harvard
00:14
yes there is retail fraud
00:17
not everything that’s done by short
00:19
sellers
00:20
is especially attractive bank of america
00:23
ceo
00:24
brian moynihan it’s good people
00:26
investing i think people have to be
00:28
careful and we all know that
00:29
charming mossovar rachmani of goldman
00:32
sachs
00:33
it is clear that this is not necessarily
00:35
justified from a valuation perspective
00:38
jared bernstein of the council of
00:40
economic advisors
00:42
related company’s ceo jeff blau
00:45
and peter atwater of financial insights
01:01
there was a lot going on this week the
01:03
federal reserve had its first meeting of
01:05
the new year
01:06
the economy is a long way from our
01:08
employment and inflation goals
01:10
and it is likely to take some time for
01:12
substantial further progress to be
01:14
achieved
01:14
president biden issued a new series of
01:16
executive orders janet yellen was sworn
01:19
in as the first woman to be the u.s
01:21
treasury secretary and oh yes the titans
01:24
of tech
01:24
announced their earnings from last
01:26
quarter but despite
01:28
all of the major news global wall street
01:30
was consumed with the story of what had
01:33
been
01:33
a small largely overlooked company that
01:36
sold
01:36
video games at the local mall a company
01:39
that the big hedge funds were happy to
01:41
bet against
01:42
until a flash mob on the social media
01:44
site reddit
01:45
decided to take on the shorts and the
01:48
rest
01:48
is history this has captured the
01:50
attention of the america
01:52
and every trader and nitrater alike the
01:55
word nuttiness comes to mind to be
01:57
honest
01:57
the gamestop story is good fun to watch
02:00
a sort of financial porn
02:02
but we need to ask ourselves whether
02:04
there’s more to it than just a battle of
02:06
the netizens versus the shorts
02:08
whether a combination of the liquidity
02:10
in the market driven by the fed
02:12
put together with the phenomenon of
02:13
social media with just a pinch of
02:15
lingering resentment of a financial
02:17
system
02:18
that seems to be rigged is part of a
02:20
larger truth
02:21
something that could point to an ugly
02:23
reckoning around the corner
02:24
with historically loose monetary and
02:27
fiscal policy
02:28
it’s really been the printing of money
02:30
by the central bank and the distribution
02:32
by the the government that’s financed a
02:35
lot of the activity
02:38
here to help us make some sense out of
02:40
these markets and how they’re reacting
02:41
to the news of the week
02:43
is charming most of our rachmani she is
02:45
chief investment officer at goldman
02:46
sachs wealth management sure i mean
02:48
always a pleasure to have you on we had
02:50
a fair amount of up and down in the
02:51
equity markets this week on wednesday
02:53
they were down the most since october
02:55
and you can tell us why that is maybe
02:57
because of what we heard of jay powell
02:58
the fetch here
02:59
and then on thursday they came roaring
03:00
back again what do we make out of all
03:02
this is it telling us anything more
03:04
fundamental about the economy
03:06
first of all thank you for having me i
03:07
always enjoy being on your show as well
03:10
in terms of the specifics of this type
03:12
of volatility
03:13
if you think about the equity markets on
03:15
average the volatility is around 15
03:18
now since the pandemic we’ve been above
03:20
20 for a long period of time
03:22
so seeing this type of market moves is
03:24
inevitable
03:26
in fact if we go back and look at the
03:28
post global financial crisis period
03:30
we have had episodes of the market down
03:32
five percent
03:33
uh at least 95 percent of the time
03:36
episodes of down 10 75 of the time
03:40
so one has to look at this at this kind
03:43
of market move and recognize
03:45
that this is just a lot of noise the
03:48
main
03:48
signal and the main message that we’re
03:50
giving our clients
03:51
is to stay invested we have good
03:53
economic growth
03:55
we have a very very favorable
03:58
earnings outlook and so when you combine
04:01
all of those
04:01
our recommendation continues to be stay
04:04
invested
04:05
and look beyond this kind of volatility
04:07
at this time
04:08
as you know we heard from chair powell
04:10
this week and he was asked about the
04:12
question of
04:13
bubble or froth or sort of extended
04:16
valuations because of the
04:17
very accommodative monetary policy he
04:19
sort of dismissed that i think it’s fair
04:21
to say he didn’t think that’s
04:22
the real problem here do you have any
04:24
concern about that at all because
04:25
there’s a lot of talk around right now
04:27
about
04:27
things being overextended when we look
04:30
at equity valuations
04:31
uh there are a couple of different
04:32
perspectives we bring to bear
04:34
first and foremost we look at a series
04:36
of metrics
04:37
but we look at them not just compared to
04:39
long-term averages
04:41
but one actually has to look at them in
04:43
the context of a period of low and
04:45
stable inflation
04:46
so when you’re looking at the
04:48
environment we have been in since
04:50
april of 1996 which is low and stable
04:54
inflation
04:55
we actually are not as expensive as
04:57
people think we are
04:58
in fact based on looking at the broad
05:00
range of uh
05:02
these metrics our view is that given a
05:05
view on where we’re going to be
05:06
on earnings this year we’re probably
05:09
about 14 to 20 percent overvalued
05:12
that is not a bubble in addition we
05:14
actually look at equity risk premium
05:16
what are equities yielding relative to
05:19
what bonds are we
05:20
yielding that is also above average and
05:23
finally we actually have something we
05:24
called
05:25
um is it’s an indicator that looks at
05:27
explosive price behavior
05:29
and we have to get that to around 90 to
05:32
100 to think we’re in a bubble
05:34
that currently stands at 26 it’s at a
05:37
hundred percent for bitcoin
05:38
but for something like equities it is
05:41
not showing bubble levels at all
05:43
furthermore if we compare it to where we
05:45
were in the dot-com bubble levels
05:47
we’re substantially below that so
05:49
definitely not a bubble trouble yet from
05:51
our perspective
05:52
charming a moment ago you explo referred
05:54
to explosive growth
05:55
we cannot talk about explosive growth
05:57
this week without talking about gamestop
05:59
i mean you just have to talk about it
06:01
give us your take on game stock what is
06:02
going on there is that a fluke is it a
06:04
symptom of something else
06:06
what’s driving that when we look at
06:08
these types of uh
06:09
headlines and this kind of price action
06:12
um it is clear that you this is not
06:14
necessarily justified from a valuation
06:16
perspective
06:17
so what is it driving driving in an era
06:20
of social media
06:21
easy access to trading very low cost
06:24
in terms of transaction costs for people
06:27
you could have a lot of momentum and a
06:28
lot of investors can pile into an
06:30
investment theme
06:31
and that does mean that you’re going to
06:33
end up with prices that
06:35
don’t probably reflect fair value and
06:37
this could be seen
06:38
in many areas it’s not just individually
06:40
in a particular stock
06:42
you could see it in other sectors and
06:44
asset classes and again cryptocurrencies
06:46
are a good example where you see the
06:47
same
06:48
type of price action where it’s not
06:50
clear these are justified by
06:52
any value argument and any fundamental
06:54
arguments
06:55
yeah i don’t hear anybody arguing that
06:56
it was justified by value arguments
06:58
does it pose anything of a risk for the
07:00
rest of the market in terms of the price
07:02
action it’ll get some attention it’ll
07:04
get a lot of headlines
07:05
but at the end of the day again one has
07:07
to separate all this noise
07:09
from the main signal it’s not as if we
07:11
would recommend our clients have a
07:13
significant
07:14
allocation to any of these sectors or
07:17
specific talks
07:19
core assets really need to be uh in
07:22
something like the s p 500 in something
07:25
like ifa
07:26
very small allocation for example to
07:28
emerging markets but it needs to be more
07:30
diversified
07:31
one of the pillars of our investment
07:32
philosophy is the real way
07:35
to create good long-term wealth is
07:36
through having some diversification in
07:38
the portfolio
07:39
okay charming as i say it’s always a
07:41
great pleasure to have you with us that
07:42
charming most of our rachmani
07:44
of goldman sachs coming up
07:47
what caused the gamestop spectacle and
07:50
what should be done about it
07:52
from peter atwater of financial insights
07:55
what we’re seeing today is very aimed at
07:58
going after companies that everybody was
08:01
convinced was
08:02
you know we’re on their way out in the
08:03
stretcher
08:05
this is wall street week on bloomberg
08:13
[Music]
08:22
a video game store is at the heart of a
08:24
titanic struggle between
08:25
short sellers and retail investors until
08:28
recently gamestop
08:29
was a company whose time seemed to have
08:31
passed with serious gamers turning to
08:33
the internet not the mall to get their
08:35
games
08:36
but then social media got involved
08:38
starting a meteoric rise
08:40
in gamestop stock after reddit’s wall
08:43
street bets forum started pumping the
08:44
stock to its users
08:46
the army of social media empowered day
08:49
traders catapulted the former small caps
08:51
market value
08:52
beyond those of even members of the s p
08:55
500.
08:56
it just reflects the liquidity that
08:57
exists and the new players in the
08:59
markets you know historically it’s
09:01
indicative of a bubble type environment
09:03
but you know to go for a long time
09:05
the amateur day traders were targeting
09:07
short positions held by
09:08
gabe plotkin’s melvin capital and andrew
09:11
left
09:12
citroen research hedge fund titans ken
09:14
griffin and steve cohen
09:16
injected a total of two and
09:17
three-quarters billion dollars into
09:19
melvin capital
09:20
amid the short squeeze distress what’s
09:22
happening is that the retail right now
09:24
is stronger but
09:25
the short bets come back and fill in so
09:27
it’s it’s just a battle that’s going to
09:29
continue you’re going to see
09:30
game stuff go way higher within a matter
09:32
of days the reddit army had pushed the
09:35
rally so high
09:36
that melvin capital and citroen threw in
09:38
the towel on their short positions
09:40
citron research will no longer be
09:42
publishing what can be considered
09:45
as short selling reports the reddit army
09:47
of day traders also boosted other
09:49
has-beens including blackberry
09:51
retailer express and amc which is
09:53
fighting to save
09:54
off bankruptcy hedge funds are now on
09:56
the hunt for other companies that could
09:58
end up on the reddit mob’s radar
10:01
i think you’re going to see a number of
10:02
hedge funds declare bankruptcy in the
10:03
next several days
10:04
online brokerages reported service
10:07
disruptions caused by the retail trading
10:09
frenzy
10:09
and a number of them including robin
10:11
hood took the rare step of limiting some
10:13
transactions on shares of gamestop
10:15
amc and others you’re witnessing the
10:18
french revolution of finance where the
10:21
proletariat is rising up to change
10:24
the order structure and finance there’s
10:27
been a surge in overall retail
10:29
trading activity as people stuck at home
10:32
tried their hands at trading
10:34
according to bloomberg intelligence
10:35
individual investors accounted for
10:37
almost 20
10:38
of the trading volume in 2020. the fact
10:40
that retail investors are going to be
10:42
able to communicate with one another
10:44
that they can actually consolidate their
10:46
buying power is something i don’t think
10:48
the regulars would have anticipated
10:49
even three years ago
10:51
[Music]
10:55
so what caused the perfect storm that
10:57
some call gamestop
10:59
we asked peter atwater president of
11:01
financial insights
11:02
and he said it was something that had
11:04
been in the works for some time
11:08
what we’ve seen over the past couple of
11:09
years have been these flash mobs with
11:11
money as i call them where
11:13
investors particularly using social
11:15
media get together and
11:18
you know aim at a single company you saw
11:20
this with tilray beyond
11:22
me just one after the other and what
11:24
we’ve started to see
11:25
is they move from moving shares to
11:28
buying options to now buying options and
11:30
things that are
11:31
you know most shorted and to me this
11:33
just reflects
11:34
on the the confidence of the crowd
11:37
they’ve gotten much more strident
11:39
much more aggressive and and honestly
11:41
they’ve succeeded at it so
11:43
so behaviorally this looks very very
11:45
predictable
11:46
and it’s coming to a head let’s talk
11:48
about regulation
11:49
because there’s various discussion about
11:51
whether the sec or someone else should
11:53
be getting involved does this
11:54
potentially
11:55
lie afoul of what’s going on with the
11:57
sec in terms of
11:58
existing regulation i i don’t know if it
12:01
runs a foul or not
12:02
but as a researcher i have found that
12:05
regulators
12:07
when they act react to sentiment and so
12:11
i expect that if sentiment becomes too
12:13
extreme
12:14
people become concerned about systemic
12:16
safety
12:17
then you’ll see the regulators moving in
12:19
force and and
12:20
you know that that’s what they do they
12:22
will close the barn
12:24
doors at the moment that the the animals
12:26
have already left they’ll they’re going
12:28
to pour
12:28
water on a fire that was already
12:30
extinguishing
12:32
those who defend short selling say this
12:34
is a way of really communicating
12:35
information in early stage
12:37
at least questions about a company that
12:39
really facilitates an effective market
12:41
functioning
12:42
uh does this get in the way of that or
12:44
is this just that same
12:45
market signaling on steroids as it were
12:48
yeah
12:48
i’m in the camp that this is signaling
12:50
on steroids i mean what you
12:52
have right now is absolute speculation
12:56
using enormous leverage
12:57
you know targeted where they believe it
13:00
will be most effective
13:01
and i step back and say that only
13:04
happens david
13:05
near the climax of a confidence cycle
13:08
where people are so certain that they’re
13:10
going to win
13:11
that they bet the ranch in things that
13:13
have enormous leverage this is
13:15
this is flipping houses um you know from
13:18
2005
13:19
on steroids in 2021 well that’s one of
13:22
my questions actually because you are a
13:23
researcher
13:24
looking back through history whether
13:25
it’s the housing bubble or going back
13:27
further than that to tulips and south
13:29
sea and things like that
13:30
are there analogies that would inform us
13:32
now that might inform where we’re going
13:34
or is this a one-off
13:35
no i think that the the analogies hold
13:37
these are these tend to be climatic
13:39
events
13:40
where you know the crowd is enormous
13:43
it’s moving
13:44
in a manic very frequent way i mean it’s
13:47
to me it’s less
13:48
of a bubble than it’s a series of one
13:50
craze right after the other
13:52
and those those high energy moments tend
13:55
to happen
13:56
you know just at the at the peak in the
13:58
confidence cycle
14:00
peter we can’t get in the minds of the
14:02
people who are participating
14:03
particularly on reddit here
14:05
but from your research from your
14:06
reporting is this about finance as a
14:09
base or is it actually about
14:11
politics or about social norms and a
14:14
real resistance to sort of
14:16
some of the institutions we’ve had
14:18
including going all the way back to 2008
14:19
and
14:20
sort of a resentment about the fact that
14:22
perhaps those in the financial
14:24
system were not held properly to account
14:27
i i i sort of look at the evolution of
14:30
of this
14:30
this paradigm starting with sort of
14:33
gamesmanship people going online and
14:35
using
14:36
uh social media to to make money almost
14:39
as a game
14:40
then it became very greed filled and now
14:43
what you’re seeing
14:44
is i i think a consequence of that
14:47
k-shaped recovery
14:49
that i’ve been talking about for the
14:50
past year where
14:52
there is a there’s a jealousy there’s an
14:55
anger there’s a frustration at the
14:56
system and i think
14:58
that the size of the crowd now
15:00
encompasses that
15:02
aspect i mean don’t get me wrong there’s
15:03
there’s always a stridents to peaks in
15:05
the market
15:06
but this is this has got anger behind it
15:10
and the behavior of the mob in many ways
15:13
reminds me of what we saw two weeks ago
15:15
at the capitol it’s a it’s a mishmash of
15:18
a whole lot of people
15:20
again we’re reaching for analogies
15:21
because it’s so unprecedented but i also
15:23
wonder if it has
15:24
something to do in parallel with some of
15:26
the cryptocurrency speculation the
15:28
extreme volatility there and is it
15:31
perhaps a generational issue
15:33
you know what started though was was
15:35
very futuristic
15:36
you know bitcoin tesla you know evs it
15:39
was very
15:40
oriented towards possibility what we’re
15:43
seeing today is very
15:45
aimed at going after companies that
15:48
everybody
15:49
was convinced was you know were on their
15:51
way out in a stretcher
15:52
you know the retailers these are these
15:54
are companies that nobody
15:56
was expecting to prosper and the short
15:59
interest just
16:00
really has enabled the crowd to catalyze
16:02
around them
16:05
that was peter atwater president of
16:06
financial insights
16:09
coming up bank of america ceo brian
16:11
moynihan on the rise of retail investors
16:14
and
16:14
what it means for the markets it’s
16:16
already been pretty democratized it’s
16:18
good people are investing i think people
16:19
have to be careful and we all know that
16:23
this is wall street week on bloomberg
16:36
this is wall street week i’m david
16:38
weston brian moynihan during his time as
16:40
chairman and ceo of bank of america has
16:42
emphasized the strategy of responsible
16:44
growth
16:45
what went on with gamestop this week
16:48
seems like just the opposite of that as
16:49
some
16:50
would say was the earlier parabolic
16:52
increase in bitcoin
16:53
but brian says that it’s not a problem
16:55
with the democratization of finance
16:58
the forces are larger than that
17:01
it’s already been pretty democratized we
17:03
we everybody talked about free trading
17:06
i think somewhere in like 2007 or
17:09
something like that i
17:10
i was riding around manhattan on a
17:12
double decker bus was free trading on
17:14
the side
17:14
side of it from bank of america this is
17:16
not a new concept and so
17:18
you know we we’ve seen 30 percent growth
17:21
in in our
17:22
uh balances for our in our maryland
17:24
which is our more affluent segment we’ve
17:26
seen a
17:27
net growth of 10 i think in in
17:30
what you call sort of digital brokerage
17:32
accounts and stuff and so it’s it’s good
17:34
people are investing i think people have
17:35
to be careful and we all know that but i
17:37
think if you look at it overall
17:38
if you look longer term what what are
17:40
the themes in financial services
17:42
more and more digital we saw we’re now
17:44
up to 80 of our direct consumer loans
17:46
done digitally
17:47
up from the start three years ago uh
17:50
more and more digital
17:51
more and more demand for i want digital
17:53
and i want high touch i want the
17:55
branches and i want the digital
17:57
more and more artificial intelligence
18:00
applied more and more operational
18:01
excellence
18:02
across all our platforms in terms of
18:04
process engineering and taking out paper
18:06
and
18:06
putting in digital work those are the
18:08
themes are just going to be tremendous
18:09
artificial intelligence distributed
18:11
networks
18:12
data information movement all those
18:15
things are incredibly important
18:17
but those things have been with us now
18:18
the questions we may have made a step
18:20
change and we’ll be after that so
18:22
yes investors yes borrowers yes
18:24
everything but
18:25
it’s really the digital it’s the new
18:27
news not as much as the underlying
18:29
asset cost when we talk about a lot of
18:31
capital looking for
18:32
a limited number of investments it’s not
18:34
limited to esg goodness knows
18:36
we’re seeing a lot of situations that
18:38
some people think
18:39
might be a bubble or at least froth or
18:41
something are you concerned that in fact
18:42
because the liquidity that’s been
18:44
injected for good and sufficient reason
18:45
to help the economy
18:46
that we really are risking ourselves in
18:48
some places i’ll give you two examples
18:50
bitcoin goodness knows has gone all over
18:52
the place and another gamestop right now
18:54
that is really quite a phenomenon and
18:55
it’s not the only one right now that’s
18:57
really getting bid way up
18:58
should we be concerned that maybe this
18:59
is an indication that maybe we’re
19:00
getting a little bit out over our skis
19:03
yeah you know those issues the moment
19:06
happen that time you know in the ebbs
19:08
and flows in the market and frankly i
19:10
don’t have great insight as to
19:12
uh those things uh we’ve been clear
19:14
about how we stand on bitcoin and
19:16
versus blockchain which is a technology
19:17
and stuff but let me let me back up
19:19
and and and the question is when you
19:22
look at the economy
19:24
and it’s about as big as it was in 2018
19:27
the projections from our team offered to
19:28
grow up five percent this year
19:30
in 21. um laugh at in 2018 in the
19:33
in the second quarter was the economy
19:35
was this big it was projected to grow at
19:37
like one half to two percent
19:38
and the interest rate environment was
19:39
100 150 basis points higher
19:42
and there wasn’t all this uh so there
19:44
wasn’t interest rate accommodation there
19:45
was a fiscal stimulus out there
19:47
now you have the same thing so the
19:49
fiscal stimulus is needed to help people
19:51
make it across the river here you have
19:53
six percent plus unemployment you have
19:54
these companies have an open that’s the
19:56
ppp
19:56
program you have holes in state budgets
19:58
and and that were created by the
20:00
cost of paying for all this work and
20:03
maybe tax
20:04
loss revenues and stuff those ought to
20:06
be dealt with and i think if we deal
20:07
with that
20:08
responsibly then what happens but the
20:10
possibility of overshooting here
20:12
is real and that’s what you’re hearing
20:13
less about the equity trading values the
20:15
moment but more about the question
20:17
when rates are one percent are going to
20:18
stay there for a long time
20:20
it’ll lead to risk and that could lead
20:21
to bubbles but the real question that
20:23
would be fundamentally bad for everybody
20:25
is if
20:25
if we miss the inflation turn and it’s
20:27
not there now but that’s one of the
20:29
challenges that
20:30
you know every that chair powell and his
20:32
colleagues have is to is to really be
20:34
watching this thing and they need to
20:36
make sure this great economy
20:37
grows again at the right rate and above
20:39
that right rate
20:40
and there’s some inflation in order to
20:42
make sure it doesn’t go backwards but on
20:43
the other hand
20:44
it’s going to be an interesting you know
20:46
as we move through the end of this year
20:47
the next year when this has all come
20:48
true the vaccine’s out and stuff it’ll
20:50
be interesting to see how they play
20:51
through that
20:52
well exactly let’s pursue that just for
20:54
a moment because uh there’s been a lot
20:56
of money given to a lot of people
20:58
again for good and sufficient reason
20:59
they’ve needed it but the indications
21:01
are a lot of it’s getting saved it’s not
21:02
getting spent in part because they don’t
21:04
have a place to spend it frankly because
21:05
a lot of the economy is shut down
21:07
how concerned are you as you look at the
21:09
economy because you have a real vantage
21:10
point into the economy broadly
21:12
i’ll continue there might be a snapback
21:14
that might actually trigger
21:16
believe it or not inflation we haven’t
21:17
talked about in a long time well
21:19
there’s been i mean it’s kind of
21:20
interesting if you traced last year
21:22
and we’ll see what the fourth quarter
21:24
all ends up final but
21:25
if you think about down 30 up 30 and up
21:28
a few percent
21:29
you have three four percentage points or
21:30
whatever it turns out to be and then
21:32
this quarter
21:32
the projections are may come down closer
21:34
to flat and that has a little bit to do
21:35
with the first quarter but
21:37
if you actually then pull that apart and
21:38
look at our our consumer
21:40
uh what we call consumer spending and so
21:43
debit and credit card spending is one
21:45
thing but this is around you know people
21:46
taking money on
21:47
atms and spending it writing checks for
21:50
services
21:50
uh p2p the zell product which is huge
21:53
right now
21:54
if you look at that spending through the
21:57
first 23 days of january
21:59
it’s up eight or nine percent over last
22:01
year’s first 23 days of january which
22:03
was up nine percent of the year before
22:05
so it is bigger in dollar amount it is
22:07
growing faster than it grew from
22:10
uh uh from eight uh from 19 to 20 18 to
22:14
19 and as fast as 19 to 20
22:16
if you look at the customer obviously
22:17
for the people who are unemployed and
22:19
you can see them receiving unemployment
22:20
benefits they’re using the money faster
22:22
if you look at the rest of customers
22:23
they’re using a discretionary retail not
22:25
uh sustenance retailing not you know so
22:27
they they are paying for their food
22:28
because they’re employed and so i think
22:30
these stimulus dollars can be spent much
22:32
more precise and i think the last
22:34
case was a good one and that it went
22:35
unemployment to the unemployment some
22:37
supplement there this
22:39
dollars under seventy five thousand
22:40
those are those are good items and
22:41
future stimulus ought to be likewise
22:43
geared
22:44
because otherwise it gets diminishing
22:46
returns and then you have the issue how
22:47
you pay for it long term and
22:50
the issue of whether it creates
22:51
inflation but there’s a lot of pent-up
22:53
savings and we would expect a good
22:54
second half of the year
22:56
now this is the mistake everybody makes
22:58
is they get talked about all the
22:59
economics and they forget there’s one
23:01
simple question
23:02
which is we have to win the war on the
23:03
virus and
23:05
right now we’re going in with a much
23:07
better
23:08
situation from a fight and that we have
23:10
this vaccine
23:11
and there’s vaccines going into people’s
23:13
arms and that then changes the course of
23:15
this
23:15
and yet that’s still out there but
23:17
that’s a light in a tunnel that wasn’t
23:19
here this year
23:19
you know last year in the summer
23:23
that was brian moynihan chairman and ceo
23:25
of bank of america
23:28
coming up working from home once seemed
23:30
to be the bold new innovation
23:33
but now for many the question is when
23:35
can i come back
23:36
to work people don’t come back to the
23:38
office new york cannot recover
23:40
and that’s really that’s really the sad
23:42
thing that’s happening now
23:45
this is wall street week on bloomberg
23:51
[Music]
23:58
this is wall street week i’m david
24:00
weston wall street has joined so many
24:02
others in figuring out how to work from
24:04
home
24:04
efficiently and effectively but the
24:07
appreciation for all that added
24:08
flexibility just
24:09
may be wearing off it feels like it is
24:13
fraying it is hard it takes a lot of
24:18
inner strength it’s remarkable that it’s
24:20
working as well as it is but i don’t
24:21
think it’s sustainable we have
24:23
10 12 back we weren’t telling they come
24:25
back but a lot of people want to come
24:26
back
24:28
related companies is the largest
24:30
landlord in new york city
24:32
and one of the most important real
24:33
estate developers in the entire country
24:35
and we asked its ceo jeff blau what it’s
24:38
going to take to get people back
24:39
into the office in new york the two
24:42
obvious answer answers are
24:44
vaccine roll out but probably even more
24:47
critical right now is testing um you
24:50
know we all thought
24:51
after new year’s that everyone would
24:52
would return right back to the office
24:54
but
24:55
in an interesting twist i i have a
24:57
feeling that the vaccine announcement
24:59
and the
25:00
closeness of it has really enabled
25:02
companies to just say you know i’m going
25:04
to
25:04
just wait it’s so close i’m not going to
25:06
pull everyone back to the office yet
25:08
you know unfortunately in new york
25:11
you know office actual occupancy people
25:13
showing up for
25:14
at their desk every day is under 10
25:17
um and it’s it’s critical that we kind
25:20
of
25:20
really push testing make people feel
25:23
safe and comfortable
25:24
until they ultimately do get vaccine so
25:26
people come back to the office if people
25:28
don’t come back to the office new york
25:29
cannot recover one of the things we’re
25:31
very conscious of in new york obviously
25:32
are the financial organizations uh do
25:34
you have a sense of companies in
25:36
in wall street how eager they are to get
25:38
their people back in
25:40
you know i’d say it varies i mean i’m
25:42
sure you’ve heard david solomon really
25:44
encouraging
25:45
uh goldman to encourage his employees to
25:48
get back
25:49
he had a very uh funny quote he kind of
25:52
said
25:52
well sure you guys all want to work home
25:54
from your living room and you can do
25:56
that
25:57
until your competitor shows up in person
25:59
and wins an assignment
26:00
you guys need to get back to the office
26:02
right so i do think that there is
26:04
pressure
26:05
um the market will ultimately bring
26:07
pressure for people to come back
26:09
you know it’s interesting you hear a lot
26:10
about uh tech tenants or ceos saying
26:14
i’m gonna let my employees just work
26:15
from home until june or december or or
26:18
forever in some cases
26:20
and yet behind the scenes when you talk
26:22
to them and i i spent a lot of my time
26:25
doing exactly that really trying to
26:26
understand
26:27
what their plans are they realize that
26:30
this doesn’t work from a
26:32
long-term perspective they realize that
26:34
culture is not
26:35
does not work it is not created over
26:37
zoom over skype or
26:39
whatever we’re using today and you
26:42
really
26:42
interactions happen in the hallway and
26:44
you bump into each other i know
26:46
certainly here at related that’s how
26:48
we work it’s a little bit less formal
26:50
and our best meetings just occur
26:52
when you walk down the hall and see
26:53
somebody and it’s it’s hard to
26:56
to create that on zoom you can’t
26:57
schedule that interaction
26:59
um how do you how do you train new
27:02
people
27:03
you know you have an incoming class of
27:05
analysts
27:06
uh goldman has 2500 new analysts come in
27:10
and what are they supposed to do on zoom
27:12
so i i ultimately do think
27:14
um i think the long run answer here is
27:18
that
27:18
there will be more flexibility in the
27:20
workplace
27:21
i think that employees value the ability
27:24
to work from home
27:25
a portion of the time if you divide a
27:27
person’s day into
27:29
the bump into a hall an interactive
27:31
meeting and
27:32
writing an investment memo which they
27:34
can do by themselves
27:35
maybe there’s a way to divide that work
27:37
up and the i’m just using this the
27:39
investment memo writing actually happens
27:41
you know on friday at home
27:43
um and the rest is but it also needs to
27:46
be a coordinated day
27:47
in that world of more flexibility as you
27:49
call it does that affect the long-term
27:51
demand
27:52
for commercial real estate as a
27:54
practitioner are you looking at a
27:55
different curve on the out years
27:58
um i don’t really think so because
28:00
ultimately you still need
28:02
for those days that you’re coming in
28:05
people to have an office
28:06
i what i think might happen is that the
28:09
build out of space
28:10
might change so there might be more
28:12
meeting rooms more conference facilities
28:14
more auditoriums
28:15
and smaller certainly private offices
28:18
and and maybe more open cube type
28:22
seating so
28:23
i think it’s going to change i don’t i
28:25
don’t think it will really affect
28:26
the overall demand are you seeing a
28:29
shift in your own business between
28:31
commercial on the one hand and
28:33
and uh residential on the other and
28:35
particularly when it comes to some of
28:36
the big luxury malls you had a really
28:38
big one there
28:39
at hudson yards are you shifting your
28:41
use at that massive project on hudson
28:43
yards
28:44
yes so we spent a lot of time thinking
28:47
about the future of real estate
28:48
development
28:49
um in response to the pandemic but also
28:52
just over time that everything evolves
28:55
and actually if you think about hudson
28:56
yards it really
28:58
had uh many of the features that we
29:00
think are critical today
29:02
i mean the the the words that people
29:04
like to say today are
29:05
15 minute cities what does that really
29:07
mean it means that you want basically
29:09
everything you could work your whole day
29:11
or spend your whole day within a
29:12
15-minute walk so it goes back to
29:15
kind of the live work play nature of of
29:17
the way we’ve been designing our
29:19
mixed-use developments
29:20
so you think about hudson yards here we
29:22
have office retail residential retail as
29:24
you said
29:26
yes is there too much retail in many of
29:28
these things today
29:29
yes and we are converting a former
29:32
neiman marcus base into
29:33
420 000 square feet of of incredible
29:36
office space
29:37
because there is demand for office and
29:39
less demand for retail
29:42
that was jeff blau ceo of related
29:44
companies at the bloomberg year ahead
29:46
summit
29:48
coming up the biden administration takes
29:50
on the battle with covet
29:52
and dealing with the economic
29:53
consequences of it we talked with
29:55
council of economic advisers member
29:57
jared bernstein about what is needed
30:00
this package
30:01
uh uh is is what is what it’s going to
30:05
take
30:05
to finally put covet 19 behind us
30:11
this is wall street week on bloomberg
30:24
this is wall street week i’m david
30:26
weston the bind administration is
30:27
hitting the ground running
30:29
but boy does it have a lot of ground to
30:30
cover we talked with the long time bind
30:33
advisor
30:34
just named to the council of economic
30:35
advisers jared bernstein
30:37
about what it needs to get done
30:40
the biggest problem is a dual problem
30:42
and you yourself david just
30:45
nailed it which is the dual impact
30:48
of the persistence of the virus
30:51
and its impact on economic activity on
30:54
commerce
30:55
unemployment on our ability to really
30:58
get
30:58
a recovery underway and as i think you
31:02
know
31:02
it’s not a uh an impact that is hitting
31:05
everyone
31:06
when the president talks about a
31:08
k-shaped recovery he’s talking about
31:09
something real
31:10
when he talks about racial equity he’s
31:12
also making a connection
31:14
between who gets most hurt by these
31:16
dynamics these dual dynamics were
31:18
describing
31:19
and this uh legislative priority top
31:22
legislative priority
31:23
of passing the american rescue plan uh
31:26
this package
31:27
uh uh is is what is what it’s going to
31:30
take
31:31
to finally put covet 19 behind us
31:35
and get a bona fide recovery underway it
31:38
funds a national
31:39
vaccine campaign to dramatically
31:42
increase the pace of inoculations of
31:45
vaccines it mobilizes a hundred thousand
31:48
public health workers
31:49
it ramps up testing treatments and
31:51
therapeutics
31:52
it engages with emergency paid leave it
31:55
brings science
31:56
back into the picture in a big way it
31:58
provides states and localities
32:00
with the money they need to reopen
32:01
schools which is so important for kids
32:03
and their parents and the economy
32:05
and that and you know i can say much
32:06
more about its components but
32:08
that is the dual challenge we face
32:11
and this plan is designed to attack it
32:14
and attack it hard
32:16
and i must say jared i don’t hear many
32:18
people republican or democrat
32:19
complaining about trying to really
32:20
attract the coronavirus getting the
32:22
vaccination program up supporting public
32:24
health things like that
32:25
there are other issues though that
32:26
people ask is it really targeted at that
32:28
k
32:28
aspect you just addressed how do we make
32:30
sure the dollars get to the people who
32:32
need it the most
32:33
for example on the 1400 payments anybody
32:35
will say some people really
32:36
need that desperately frankly some
32:38
people don’t they’ve kept their jobs
32:39
they’re doing just fine
32:41
yeah now that’s important and i think
32:43
the uh thing to recognize
32:45
there is that the checks are are better
32:48
targeted than i think many folks realize
32:50
now that doesn’t mean that they just go
32:52
to folks at the bottom
32:54
but that’s because it’s not just folks
32:56
at the bottom who need the money
32:57
and if anybody’s listening to me in the
32:59
you know 75 100k
33:01
range uh many of them yes many have kept
33:04
their jobs many have lost hours many
33:06
have lost wages
33:07
lots of those folks again i’m not just
33:10
talking about the poorest i’m talking
33:11
about folks in the middle class
33:12
something that’s always been
33:14
very important uh to uh to president
33:16
biden so he talks a lot about the
33:18
struggles that middle class families
33:20
have had in recent decades
33:21
many of those folks face um uh
33:24
uh issues around rent and um mortgage
33:27
payments so
33:28
there’s been these moratorium in play as
33:30
you know and that’s a lot that but
33:31
moratorium is not
33:33
you know forbearance is is not
33:34
forgiveness so at the end of these
33:36
moratoria
33:38
uh people face very significant bills
33:40
now that means that they and this is
33:42
really
33:42
important bit of economics here this
33:44
gets down into some keynesian
33:45
multipliers
33:47
um what we’re talking about here is that
33:50
yes
33:50
some of these expenditures will be
33:53
initially saved and not spent
33:55
and that gives them kind of you know a
33:57
low mo a lower multiplier in a keynesian
33:59
sense
34:00
but that’s just kind of a technocratic
34:02
concern
34:03
i think what’s most important is that we
34:05
finally
34:06
look ahead that was jared bernstein
34:10
member of president biden’s council of
34:12
economic advisors at the bloomberg
34:13
year ahead summit and now it’s time for
34:15
a look at the week ahead
34:17
on global wall street thanks david the
34:20
liquidity squeeze in china will remain
34:23
front and center
34:24
well we’ll be looking at the january
34:26
readings on china’s pmis to get an idea
34:28
of the economy’s pulse
34:30
we also have central bank meetings in
34:31
australia and thailand
34:33
with the rba expected to maintain its 77
34:36
billion
34:36
quantitative easing program india’s
34:39
finance minister has a tough job on her
34:41
hands to help spur a recovery in an
34:43
economy facing its worst recession
34:46
since 1952 when the country’s budget is
34:49
handed down on monday
34:51
and quiet show technology the main rival
34:53
to bike dance in china
34:55
is slated to list in hong kong on friday
34:57
in what would be the world’s
34:58
biggest internet ipo since uber danny
35:02
thanks juliet in the eu a dispute has
35:05
opened up
35:06
between them and astrazeneca with the eu
35:09
saying that they need to fill their
35:10
contractual obligation to deliver more
35:13
vaccines
35:13
despite the fact there was a glitch in
35:15
belgium production
35:17
at the week ahead we also have a boe
35:19
meeting to look forward to
35:21
what will the reaction from the boe be
35:23
considering that data has significantly
35:26
weakened
35:26
in the uk we’ll see what type of
35:28
stimulus they might
35:30
propose or any other support measures
35:32
romaine
35:33
thanks danny well u.s investors will
35:35
have a slew of corporate earnings to
35:36
digest next week more than a quarter
35:39
of the 1000 largest u.s listed companies
35:41
set to report earnings
35:42
big tech will be in focus alibaba
35:45
alphabet and amazon
35:46
and in the healthcare space pfizer amgen
35:48
and regeneron
35:49
will be ones to keep an eye on based on
35:51
the company’s reporting so far
35:53
the s p 500 in aggregate has seen about
35:56
a one percent drop in earnings per
35:58
share despite the fact that revenues are
36:00
actually higher now on the economic
36:01
front keep an eye out for manufacturing
36:03
data on monday
36:04
auto sales on tuesday and u.s monthly
36:06
employment numbers
36:07
that arrives on friday and will be sure
36:09
to bring back into focus
36:11
that two trillion dollar fiscal stimulus
36:13
plan that president joe biden
36:14
is trying to push through congress david
36:18
thanks to juliet danny and romain
36:22
coming up we wrap up the week as always
36:24
with special contributor larry summers
36:26
of harvard
36:28
this is wall street week on bloomberg
36:41
this is wall street week i’m david
36:42
weston we wrap up every week with our
36:44
special contributor larry summers of
36:46
harvard
36:46
and this week we have to get larry’s
36:48
thoughts on the phenomenon that is
36:50
gamestop
36:51
and what it may tell us about the state
36:52
of our markets our economy and maybe our
36:55
politics
36:56
more broadly i should say larry so thank
36:58
you so much for being with us uh you’re
37:00
a macroeconomist you’re not a day trader
37:02
that i’m aware of you’re not a short
37:03
seller that i’m aware of
37:05
so i’m not asking about as a trader but
37:07
from a macro perspective
37:09
is gamestop let me put it simply a fluke
37:12
or a symptom
37:15
i think it’s a bit of i think it’s a bit
37:16
of both i think it
37:18
points up that there’s a lot of activity
37:22
in finance and in financial markets
37:24
that’s not necessarily particularly
37:26
productive
37:27
or particularly rational and that
37:29
there’s a need for
37:30
adult supervision uh sometimes
37:33
uh i don’t think that this is something
37:36
that’s either gonna
37:37
lift the economy up or bring the
37:40
american economy
37:42
uh down but it does seem like there’s
37:45
more risk uh than there has to be
37:49
born in a variety of directions so
37:52
that’s a question really could this be a
37:53
canary in the mine shaft
37:55
the economy’s not going to make it or
37:58
not make it based on gamestop goodness
37:59
knows
38:00
but it could be an indication couldn’t
38:02
it of of of sort of froth or even more
38:05
than fourth maybe a bubble as you know
38:06
chair powell has asked about that
38:08
this week look i i think you’ve got to
38:11
be
38:12
concerned gamestop is one thing
38:16
the uh ways in which ipos have
38:19
popped by a factor of two or three
38:23
the uh new financing vehicles
38:26
associated with some of what’s happened
38:30
in
38:31
the spac sector certainly not all of
38:33
what’s happened in the
38:34
uh spac sector all of this
38:37
has a slight feeling of 2000 or 1929
38:42
uh in the air and so i think the idea
38:46
that we’ve got a new group of financial
38:48
regulators coming in who are
38:50
more committed to regulation than the
38:53
previous
38:54
uh group i think that’s all welcome
38:58
whether that means that markets are in
39:00
some
39:01
aggregate sense uh overvalued uh
39:05
that’s not a judgment uh that i’d be
39:08
prepared to reach
39:09
uh certainly with confidence but i
39:12
certainly think
39:12
risks are uh in a
39:16
two-way direction but i also
39:20
think david that you got to look at both
39:22
sides as yes
39:23
there is retail froth not everything
39:27
that’s done by
39:28
short short sellers is especially
39:31
attractive
39:32
either and certainly there have been
39:34
excesses of the practice
39:37
of uh short selling and then trying to
39:40
disparage and
39:42
so there are things that have gone on in
39:44
the hedge fund
39:45
uh community that i think uh
39:48
can at least be uh questioned
39:51
uh as well and in general the activity
39:55
of some people trying to short and other
39:56
people trying to
39:58
uh squeeze them and people trying to
40:01
create bandwagons
40:02
to the down uh to the downside
40:06
it’s a pretty imperfect uh
40:09
business and i don’t think anybody can
40:12
feel entirely comfortable about what’s
40:14
there
40:15
i guess the other question i’d want to
40:17
put
40:18
is not all well-intentioned regulation
40:23
works out well and you know it turned
40:26
out that in their early incarnations
40:28
certainly circuit breakers ended up
40:31
exacerbating volatility because people
40:34
started selling when they were afraid
40:36
the market
40:37
might close in the incarnation that got
40:40
put in some of the rules we had on money
40:43
market funds
40:44
actually made runs on money market funds
40:47
more likely not less likely so
40:51
indignation and dismay about the status
40:54
quo
40:55
may be a necessary condition for new
40:57
regulation
40:59
but it’s not a sufficient condition for
41:01
any kind of
41:03
regulations i think we’re going to need
41:06
people who are with regulatory
41:07
responsibility to sit down
41:09
consult with all the parties reflect
41:12
very carefully
41:13
on what’s happened here and what its
41:16
lessons are
41:18
larry from your experience having
41:20
studied these things and lived through a
41:21
fair number of them
41:22
where does this all lead i mean this
41:24
week we had the likes of
41:25
alexandria ocasio-cortez joined together
41:28
with ted cruz for goodness sakes to
41:30
agree
41:30
there’s got to be a congressional
41:31
investigation where does washington take
41:33
something like this
41:38
look i’d almost be prepared to say that
41:41
whenever aoc and ted cruz agree
41:44
they’re wrong and that there’s a general
41:47
principle
41:49
when a cause attracts the attention
41:53
of both extremes
41:56
you have to worry a lot about that
42:00
particular uh cause
42:03
and i think the idea that
42:06
somehow the people who are involved in
42:10
this
42:10
are really great social justice warriors
42:13
um and that this is an occasion to get
42:16
the man
42:17
i don’t think is a particularly fruitful
42:20
way to think about
42:21
uh policy but my guess is that two
42:25
things are going to happen
42:26
one is this thing’s gonna in some ways
42:30
set in its own undoing they’re gonna be
42:32
some painful lessons learned
42:34
people are gonna be more careful about
42:36
shorts about shorting
42:38
because they got squeezed and routed on
42:40
the one side
42:41
and people who are involved in pushing
42:43
this stock up to ludicrous levels are
42:45
probably going to end up losing a lot of
42:47
money
42:48
and they’re going to learn a lesson from
42:49
that too so to some extent
42:51
this thing is going to teach its own
42:53
lessons and
42:55
i think the dull work of government
42:58
we’re not going to have any instant
43:00
legislation
43:02
but we’re going to have committees
43:03
formed to study various aspects of this
43:07
to make recommendations that are then
43:09
considered
43:10
is actually going to probably lead us
43:12
with better financial
43:14
markets and a better set of rules
43:17
than the rules we have today okay larry
43:20
let’s wrap up the week as we do every
43:22
week
43:22
with some summer says three quick
43:24
questions number one on the vaccination
43:26
program
43:27
will it over perform or underperform
43:29
what is now expected
43:30
i think it’s going to over perform i
43:32
think it was a masterpiece of spin
43:35
frankly to define the objective as 100
43:38
million doses over
43:39
100 days at a time when even the trump
43:42
administration had figured out how to do
43:44
850 000
43:46
doses a day so i think they’re going to
43:49
see that
43:49
target massively outperformed on
43:52
my best guess would be you’ll see 175
43:56
million doses
43:57
in uh the first hundred days and that’s
44:00
as it should be
44:02
and if we don’t get a bad shock from
44:05
biology
44:06
i think we’re going to make more
44:07
progress more quickly on covid
44:10
than many people expect what kind of
44:12
progress we’re going to see with the
44:13
economy
44:13
second question is will we over perform
44:16
or underperform current expectations for
44:18
the u.s economy
44:19
different people have different
44:21
expectations but i’m betting on growth
44:23
above six percent this year
44:25
and i think that’s over performing on
44:28
most people’s expectations i really
44:30
think we
44:31
very much now are in a world of
44:34
two-sided risk
44:36
both in terms of real activity and in
44:38
terms of possible inflation risk
44:41
third thing jay powell chairman of the
44:44
federal reserve we heard from this week
44:45
we heard from the fomc
44:47
how do you react to what you heard and
44:49
saw
44:52
we’re lucky to have jay there and i
44:55
think in the fullness of it all he’s
44:57
made
44:58
very good judgments i
45:01
think that they need to be more mindful
45:04
of the possibility that the conventional
45:07
wisdom is wrong
45:09
and that we have a little more inflation
45:12
picking up
45:13
a little sooner or that financial
45:16
markets get away from us
45:18
and so i thought he was
45:21
so focused on providing reassurance
45:25
on the fed’s continued stimulus to the
45:28
economy
45:29
that he created a dynamic where if it
45:32
was necessary
45:33
to do things the other way it would come
45:36
as a pretty jarring shock
45:38
and that was my worry about how he
45:41
calibrated the balance
45:43
by all things considered i’m glad he’s
45:45
there
45:46
larry it’s always such a pleasure to
45:48
deal with you every single week that is
45:50
special wall street week contributor
45:51
larry summers
45:52
of harvard finally one more thought
45:57
the vaccination site 800 years in the
46:00
making
46:00
as we press forward urgently impatiently
46:03
to get as many people vaccinated as soon
46:06
as possible
46:06
we face a series of hurdles
46:08
manufacturing doses as fast as we can
46:10
testing and approving new vaccines
46:12
getting the medicine distributed
46:14
covering the last mile and getting it
46:16
into people’s arms
46:18
only vaccinating everybody everywhere
46:22
would get us out of the risk of this
46:24
mutation
46:25
but of all the problems we face real
46:27
estate isn’t really one of them
46:30
google the term mass vaccination sites
46:32
and you get almost
46:33
one and a half million results
46:35
everything from pharmacies to hospitals
46:37
to sports arenas we hope to open up in
46:40
roughly about
46:40
two weeks time to do base center for uh
46:43
mass
46:44
vaccination centers but there’s only one
46:46
that has the highest spire in all of
46:48
england
46:48
the largest cathedral clothes the
46:50
largest cloister and that is the
46:51
cathedral of salisbury
46:53
where according to legend at least back
46:55
in about 12 20 or so
46:57
a bishop shot an arrow into the air hit
46:59
a deer and where the deer fell is where
47:01
they built the cathedral
47:02
and that cathedral now is a mass
47:04
vaccination site
47:06
and now the chapel of saint michael the
47:08
archangel is filled with refrigerators
47:10
for the vaccine the huge nave is full of
47:13
chairs
47:13
rather than pews and that’s where the
47:15
elderly who have been inoculated wait to
47:18
make sure they have
47:19
no allergic reaction wait while two
47:22
church organists play soothing music
47:24
while they wait
47:25
you can call it song freud you can call
47:28
it a stiff upper lip
47:29
but as we all wait for the vaccine we
47:31
believe will save us
47:33
leave it to the brits to do it with
47:35
class
47:36
that does it for this episode of wall
47:38
street week i’m david weston this is
47:40
bloomberg
47:41
see you next week

Bitcoin’s Inequality: 40% owned by 0.2%

Bitcoin is one of the most unequally distributed assets in the world, with just under half a percent of all bitcoin investors owning more than 80% of all bitcoins, and should they liquidate, the market could see a substantial sell-off, said Ryan Giannotto, director of Research at GraniteShares ETFs.

0:00 – Bitcoin is ‘cornered’

5:50 – Bitcoin’s volatility

8:17 – Bitcoin ETF coming soon?

11:44 – Economy, inflation, and gold