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Dahlman Rose CEO Kim Fennebresque on why central banks will prevent a bank-funding crisis in Europe and why privatizing aspects of the U.S. infrastruc...
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-- joining us is a guy who knows firsthand -- about how banks work and then what can swamp them -- fed -- is the chairman and CEO Norman rose.
And previously.
He -- -- division of the French banks Societe Generale that was -- sentenced to count good to see you can see this when -- year 0:5 central banks band together gonna have to obviously and say don't worry we're going to.
Keep the cushion under you and everything will be fine -- not.
Because we know the when the market turns its -- -- -- thing.
Yeah that this is a little bit like.
You know Wylie coyote and roadrunner I mean I think it -- you know why the -- he's trying to catch a falling safe.
And I don't think anybody knows how low is and so it may work for today may work for a month.
But these things are very hard to plumb the depths so.
Erica thanks -- three years ago.
Lehman goes under -- next day our Federal Reserve opens a discount window that banks can walk right up to and borrow very cheaply and then nobody else really went under mean arguably Merrill Lynch had to be bought by somebody else but.
Maybe this is enough to hold on but do you foresee a bank funding crisis in Europe.
Now I do I do think there's going to be.
A lot of Central Bank intervention weather's -- winners ECB or others perhaps to be intervention.
To prevent teachers create a floor but I don't see I don't see a funding crisis I don't think they'll allow to get to a crisis they have watched us go through what.
And they won't allow.
Let's get back to job creation here in the United States -- you are an investment bank that's private specializing in essence in the Catholic transportation energy.
And I think transportation I think big opportunities and projects which is what the president has talked about but what's the best way to effectuate that.
Well I think that there there are two things of what you want is has -- -- and that's a little more problematic as was not as much private sector activity.
Should their -- so I think there should clearly should be I think we have a public sector that has manage these things terribly in the past so when the president says.
We need to fix our railroads and our bridges and our highways and our airports that's all true that's been true for twenty years and we have with you go to any.
New emerging country and in in Asia you'll see everything's new.
-- airports for example.
Airports in the United States are mostly run by state governments should -- privatize yes there's there's all these all these.
Enterprises should be private to be better -- by private they'll attract capital.
But they need to be fixed before they can be taken public -- they should all be privatized okay for me for example and Gatwick and London I know is is partly private that are fully private but you've got the BAA the British.
Authority that's involved with aviation and aerospace and you say.
They're managing to manage airports and then the private money could come in.
And he's doing a little bit better yes and I think and I think in fact you know here there are private equity funds that are involved in infrastructure.
And they're buying up infrastructure assets around the country it's slow and it's a small amount of money relevant to the total value of these things but there's no question -- better.
That are held in private hands let's get to the rails rails.
Before Warren Buffett got involved -- kind of an afterthought sort of yesterday's industry and now they have become such an opportunity.
Where is that opportunity that people can best capitalized I think on the short -- -- lots of opportunity but I think all of them provide opportunity or an essential mover.
Of commodities and commodities have to be moved so they are they are very do it more cheaply if you visually fortunately and -- independently won't -- they are dependable.
Yeah railroads to not get grounded by bad weather I mean of course -- floods which we saw in the past have been a problem but.
You know EU also underwrite offerings -- you just under road of recent offering for Molly court which is that one US rare earth company that has been such a high flyer.
What's happening with Molly -- and and with the miners and elements things like zinc and nickel of those opportunities.
-- those those continue to be terrific opportunities and I think they are going they are cyclical obviously.
But there is a pay a super cycle in commodities when there's rarer sort other other commodities that are being put under pressure by the Chinese the Indians.
Who all need -- -- they relentless desire demanding an example of a rare earth.
More of them are you we've had won but I mean it's all ends in letters that I -- How it's gonna get there all of the periodic showers and elements that I know -- -- a classroom but.
-- -- by accident called -- that there.
But looking at at how that second offering went was it inspiring do you feel like OK there's real opportunity here or if there's a global slowdown will there be less.
A need for something like a rare earth group.
Now I would there may be some who lessening demand but and I think the Chinese for long time put real real restrictions on what we -- could lead the country because they're trying to control the themselves.
The World Trade Organization trying to stop that.
I think the demands gonna go -- we -- -- we -- a dip for a year or two yes but I think these these commodities are in long term demand and that's why.
We have focused on that area of.
Of the commodity super cycle that's what our businesses I do that a couple of bomb on the periodic chart Lawrence Berkeley on and and who knows what else yes exactly the flip that we're literally tungsten thank you great to see if you.
Come back to -- well good to see you again -- -- abreast of -- Munro.
