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Former Goldman Sachs vice chairman Robert S. Kaplan weighs in on the deleveraging process and economy.
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And it's pretty cool all the data mention about the college football programs -- the letter of a check -- these numbers.
For more important because they're about the entire country Americans uncertain.
About the -- year ahead half say.
United States' best years -- now behind -- 47% still believe that the best is yet to come for the country is from Gallup.
Let's bring Robert Stephen Kaplan and former vice chairman of Goldman Sachs professor at the Harvard Business School it's from Boston with -- -- today what do make of this rob.
But it's not surprising we're in a period where we're going through on massive deleveraging and our country the household.
That are being surveyed have got to tighten their belts reduce their debt.
Businesses on the bright side are doing well and we get to watch the spectacle of our government every month.
Which is still over leveraged.
And and we don't we're not seeing improvement fair in its balance sheets so I think it's scary to people.
And they in particular they've got to tighten their belts they wanna see the government do what it needs to do and I think that'll be encouraging.
To the population that the government.
Can come together and get its act together.
And so far we haven't mean obviously we haven't seen that in one cliff after another -- and every time they have a a deadline they just create a new one which is what we're going through.
At this point isn't long term issues though that you talk about this deleveraging process that we've been in so.
How much of this becomes a self fulfilling prophecy for people where -- fundamentals and statistics behind the economy might be OK but people.
Still -- -- don't believe that and that kind of puts us back in in trouble again.
Well here's what the economic problem is reducing debt.
And is that puts a drag on GNP growth puts a drag on people's earnings we've got to go through another five or eight years of getting our debt down.
So that we can grow again I think pick people in the country are willing to do it but we've got to get started.
Right and and so this is this is a long term problem.
I think the country is mentally prepared for it they now want to see the government that.
Did this or something is there an impetus or DP it this or something you can see on the horizon which drives the government.
To act we talked about Simpson Bowles and a year -- that no labels group -- tries to get people to cooperate.
Our view here -- been at the market at some point will force them to cooperate and maybe bond yields.
I'll start to really go up the -- now we have to do something but what do you think -- how to when they when they act is because they have to.
If you mentioned no labels were calling for an annual report.
From some independent party like comptroller of the currency that gives an accurate assessment of the US government budgets.
And the outlook and -- I think we feel and I feel optimistic.
We've got a president that's about to be inaugurated a second term.
He should be worried about his legacy.
And I and I think that there's no place to hide on this they've got to do entitlement reform.
And they've got to address these issues cannot -- it depends on what we do.
And that the problems we know what they are we know with the solutions are whether it's means testing that inflation testing.
Maybe it's eligibility age we know what and -- What needs to be dead and now it's time to do it right and the president that was gonna have to really step up to this.
And it can't be a fight political fight.
On one political battle after another I think I'd love to see the president now step up.
And articulate a clear vision for reducing.
And restructuring are entitlements.
All kind of turn the doubting -- on this so we are able believe that obviously -- we -- -- we hope you're right Roberts Stephen Kaplan thanks for coming on again today appreciate it thank you.
