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WL Ross & Co. CEO Wilbur Ross on why he believes there will be another round of quantitative easing by the Federal Reserve and what is needed to b...
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Our next guest says -- chairman Ben Bernanke will likely launch QE3.
Qualitative easing third round before the presidential election.
But he says it may not be effective joining us now.
Is legendary investor and businessman Wilbur Ross chairman and CEO of W -- Ross and company one of the world's leading private equity firms -- to have your world.
Good to be.
Up let's start with the let's start with you.
QE3 you really believe Bernanke will do.
But think there's a good chance of -- -- inflation seems very much and control.
Economy clearly is not doing that well.
And has been -- -- to hold inflation down boost the economy.
And the effect will be just extraordinary.
Momentum in the economy will see a surge of growth for the markets role.
Scream out how alert.
Well half and that's true I think the market's -- scream hallelujah.
I don't think the effect on the income you've been much of anything at all.
The banks already have -- 1000000000700.
Billion that excess cash.
They're not lending them out so why would they Linda the next -- think that you know and and that's a very important.
And why what is going to be what's required to get these banks moving money again.
What would you recommend to Bernanke would you recommend to Treasury Secretary Geithner.
Well -- think they're.
Several things first of will be consumer financial protection group should sort of lay off instead of -- up more and more complicated rules it's great.
-- -- think you should lend money.
But -- -- picking on them for who he is planning.
Not exactly conducive.
So second and think they need to read the food and the solution to the housing problem.
They're defining the housing problem.
As being how do you keep people.
In residences of them have actually basically.
Cannot afford.
The real problem is how did get -- clearing mechanism.
Get things to stabilize.
And get back to normal.
I'm getting the impression from a number of folks who who know what they're talking about.
That we have seen a bottom in housing that we are sort of deceit the formation.
Some advance.
In in the housing market in this country.
In particular.
What richer read.
Both very -- -- location by location Miami for example has really turned around.
20% -- that condominiums sold in my mid last year.
Was sold to Brazilians mostly for 1020%.
40% of the whole market.
Let me is really becoming the capital of Latin America and that's what it really takes to fix the housing.
Slump is inbound migration.
In -- inbound migration.
Especially of capital.
That's and aside from the fact that we are starting to attract direct investment.
On whether it's C -- her -- and Chinese oil companies or whether it is resilient money in Miami.
The fact is we've got to start building and we've got to start exporting.
And we.
Just about had it had we not with this sort of the -- when it comes to trade we need to export.
Oh absolutely and and one of the few things that would be good -- -- word -- -- very.
There's it would undoubtedly not our currency don't know and you know -- -- some marginal help Rex.
More job creation we're looking.
That anything can be done to turn around this jobless recovery in the next twelve months irrespective of who's elected -- Maybe over twelve moves would certainly not between now and the election.
That is just not enough time for anything to work.
Not enough time for anything to work and yet.
This is a question of leadership in this economy we're looking at confidence -- starting to show some signs of resurgence whether it's consumer confidence whether it is investor confidence.
What's it gonna take to see that rise.
You know I'm really just tired of one and a half percent growth I'm tired of hearing fools talk about new -- I'm tired of people not having.
You know very well frankly they -- that passion to go make something happen.
Whether they're business leaders are -- political leaders what's it gonna take.
Well someone -- has -- that just says the government has been substituting borrowing for balanced income.
People have been substituting borrowing.
-- there and come right living off borrowed money.
That's the very fundamental problem with the income households are starting to to shape up they're starting to firm up their balance sheets as well there are no load of that is due to mortgage forgiveness -- right foreclosures so it's not exactly the best way to fix and talent -- jobs -- -- Hector.
-- but the real problem with the terms of the believe is that we have a lot of structural unemployment.
Goes -- high schools and military and you know people who can work in factories you have to.
Rudimentary math rudimentary science.
Because factories.
Another place for physical labor.
-- computer controlled machines.
It's numerically controlled machines.
They're just not turning to people who can do it and this is -- time.
Which we would think that we really hearing from this president and from the challengers.
Who with greater detail their vision of what life in America should be over the next five to ten years.
Hopefully that is next on the campaign trail -- -- it's always great to talk with a correction -- thank you I'm well.
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