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Former American Express CEO Harvey Golub on how the government hindered the economy’s recovery.
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Here's a fact the recovery -- than one of the worst in the last sixty years.
That's according to my next guest -- dollar the chairman of Miller about fire and former American Express CEO he joins me now welcome to the show it's great to have you here thanks very.
Let's talk about this performance of the economy because it it is astonishing -- worst in sixty years ranking what.
Eleven out of eleven -- move out of that happen.
If -- if it did it -- it happened because the president articulated.
A set of policies that -- objective was to great jobs.
But his actions.
War actions that would have exactly the opposite effect.
So that you you spend 800 billion dollars in stimulus you -- spending several hundred million dollars a year increase that over five trillion dollars.
You keep interest rate at zeros on the 110 all of which sort of the stimulus.
And on the other hand you unleash regulatory.
Zealots that go out and try to kill industries to.
-- EA it is I think in the UPA doing it through the through the coal industry.
-- the Sierra Club a brand so of these -- announced today that it will do everything you're kind of make sure no more gas wells girls.
And they have an enormous amount of power and can probably have the -- you do their bidding.
Well if they're very close to them.
But but what -- went wrong it wasn't just over regulation there were other thing to -- administration put in place it probably didn't help the situation either.
The it was the anticipation.
I think -- suspension of further regulation.
That will come about through obamacare and through Dodd-Frank Dodd-Frank will be more dangerous than an economy that obamacare actually.
And and people see that coming.
They see the necessity.
What will be the necessity.
For increasing taxes.
You've been one of your earlier segments huge you showed some -- about the growth in the end the national that and the the cost of servicing that debt.
Under current scenarios won't be doubling that in the next ten years will have debt to GDP you know 120%.
And we'll have to pay for it.
It's not sustainable -- -- we just can't continue this 43 cents out of every dollar.
Going to servicing the debt it's just you wouldn't put up with that your personal life now.
He says something that I thought was very interesting that Dodd-Frank will be more harmful.
Then Obama care you ran American Express from 93 to 2001 you're somebody who knows.
What it means to it financial services the banking system to have this kind of regulation why is Dodd-Frank so phone owners.
It hit its basic assumption.
Is that -- wise -- can anticipate.
Those currencies such as systemic problems that can bring Gunner currently and take -- ahead of -- That is -- sense there is nobody that can do that.
That's what's first second.
By defining risk the way they are defining that they will have.
A greater concentration of risk because individual banks will.
We'll have portfolios that would be very similar to other banks portfolios.
Out of a segment of the economy is affected negatively it will affect.
All about it it's so everybody certainly go down not just one not just -- the -- The concentration.
Of banks is going up because Dodd-Frank.
Says these banks these institutions are too big to fail.
That means are safe to put your money with them -- level lower cost of funds they'll be more competitive and they won't gain market share.
But aren't they really now too big to bail.
I mean think about it I mean aren't these institutions so large now.
But there's if if one of them goes out the -- probe we can't bail out another institution how do you how do -- -- that.
Growing them we actually did hello all the -- the banks were not probably pay -- money back.
And you do it by having very low interest rates letting the banks borrow money from the Fed.
A very low interest rates and put the money out -- short term government securities and and recapitalize the banks.
Do you think -- -- you think.
It's easy to do that we've done it several times.
So you're not worried about another bank failing.
-- I don't know I think banks will fail and and it and -- and women fail we will be because -- concentration risk the lawsuit and risks the government says it is safe to have sovereign debt.
I wouldn't buy Greek debt would you.
Now middle up up up and that's it to -- I want to ask you though because this piece you wrote this op Ed in the Wall Street Journal really took apart.
Our recovery and -- -- showing how low it's been how anemic what do we need to do to get back on track.
It but we almost need to do the opposite we we need to stop this regulatory.
Zealotry.
This this crusade that seems to be going on.
Across.
The various.
Executive departments.
To impose.
Greater and greater regulation.
And greater weight on on the private economists.
We've got to is it more important than that actually is changing the tax system tax system is an abortion.
And in -- technical services reports it it is replete with favors.
Absolutely with.
With our crony capitalism.
We have a corporate tax code that is that is awful it is too hard it is also actually.
Form chain that's reforms -- taxes would be it would be a big step for that would be that would be the majors that are right.
-- -- -- -- thank you for coming on tonight really appreciate you're coming in this.
