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The real story behind all of -- much Bob doll and former Georgia W bush deputy assistant that -- Bob do you first.
What is it what's really driving this.
Well I think get when you look at things -- you find there's a lot of cash out there but not returning any thing.
Borrowing costs are pretty low if you can get the money stocks are pretty cheap.
We have an environment where growth is -- as you pointed out it's tough to grow and so you think about doing it in organically rather than organically.
Then the final thing -- -- that's a bit of -- changes the world is slowly healing.
And so people are willing to step out -- a little more confidence to do some of these deals so I think this has been getting we'll see more.
Well you know it's your Barack Obama -- that and then you -- here crowing about.
There were surging stock market as he did in his State of the Union Address you're gonna look at this and say well.
If Wall Street as a problem with me it's certainly has a funny way -- selling it what do you make -- Yeah hi I'm sure that there I'm glad that I will go dress -- the tuba.
-- funny convinced that President Obama and his team will try to take full credit for this -- -- if you look behind this the stock market is.
Really essentially flat and we taken inflation into account during the Obama years we've lost ground in the market in and I can't help but look at the situation.
With all these announced mergers and think what it could be.
If President Obama and his team realized that they can't get to there you know spending your -- not without getting this economy growing.
And and and the economy is hobbling along even a slow runner get eventually cross the finish line and I think that's what we're seeing.
But -- you know is that when you well we might be you know back suits those levels of the -- -- -- five years ago but it has been a steady climb back from the -- And then maybe it's it's a Bob's point it's it's a market itching to put -- -- to sitting on the sidelines to work net net good.
For Barack Obama -- Yeah a lot for -- let let me be clear I mean we're all investors we all wanna see this thing improved but I agree with Bob economics is about choices.
And what's really behind this is there's been precious few good choices.
And what we're seeing is is that with returned so low and other investment options we just might see some more people.
But making these types of investments because even -- taxes go up there is uncertainty about how far they're going after this deal that was reached.
You know but I -- -- -- argued about -- slowly.
Inching back economy here everywhere.
Not -- gang buster that's about enough maybe to -- money that's been nervous as I said sitting on the sidelines to come back -- But the way it's being committed -- -- necessarily to expand plants and operations.
As much as it is to retrench -- your buying out a competitor.
You're really not expanding your business you're really just retrenching -- -- -- -- if -- dal.
Try to privatize yourself your dot heralding.
The success of what's going on that you could argue its part of the bond to Fidelity.
So explain the mechanics of what's happening.
Well meal I think you're actually right and I I agree with Matt had the -- I put it is just think how much better -- could be if we had decent policies.
Look at the rate of return on capital in the rate of return to use capital is a big gap in the reason there hasn't been something prior to this.
And the reason is that in more as much as we seen this week.
Is that uncertainty in the absence of clarity around a good policy.
Also the mechanics are absolutely right it's it's a bit of retrenchment is sort of like I don't know well what else to do with the money some gonna give more back to the share.
Older Obama may be exact opposite bud Bundy and that is only that certainly right -- -- one of the -- on Saturdays through the election editing not a who's gonna win but.
Whether you know juggle all the bush -- tax rates are going to be renewed or not those on the -- throughout.
Now now now we now now -- there's I guess more uncertain about -- more taxes.
Up by and large we kinda know where we stand -- Wall Street.
You go to or bad light that aspect of it.
Absolutely we know more today than we did -- back prior to the election and prior to the fiscal cliff.
We have so many uncertainties and so I'm not saying that we're gonna get more deals like that we will my point is -- we had more clarity.
I think we get a whole lot more deals and I think -- what -- saying as well.
-- -- -- Totally agree and I think.
You know won any issues that's at stake here is investors.
Certainly Republican investors were waiting for a savior to come -- was Mitt Romney gonna win was John Boehner going to be able to stop everything.
In reality it said in.
Basically the Democrats control the senate Barack Obama got a second -- -- with fat comes a lot of clout and there's certain reality setting in.
And in so I think that's one of the reasons why you're seeing people act.
You know I have a crackpot theory on this settlement and -- odds -- -- -- the experts -- about when it comes to -- -- case.
But as you know guys -- do read -- teleprompter so I think I know what I'm talking about so Bob I'm gonna raise this issue would view that.
I think Wall Street Dow is beyond.
Worrying about Washington on whether it's gonna once again in two weeks you know a blow another sequestration deadline to read and see you come to -- It's trying to march on despite Washington.
Convinced it's just a farce and just get back to doing whatever -- could do on its own and thinking that it has great opportunity.
On its own what say you.
I'm not gonna disagree with that if you ever remember the answer -- the first question you gave me I didn't bring Washington in it at all muted because lady greeted with the it to some degree what -- still a variable.
But I think in investors' minds may be a little less than it was a few months ago.
And that's probably good thing and when we talk about Washington we can't forget -- Central Bank in the Federal Reserve and all its friends around the world that are certainly helping.
Keeping the return on cash flow keeping the liquidity.
And being a fostering the idea of let me take another risk -- by buying the company down the street.
So upshot for Republicans -- that would be what.
Well you Republicans.
I understand -- all of that real particular and your old friend -- that's okay.
Well let me just say at the person that brought up Washington that that could really be up -- for Washington.
It for Republicans in all this is the fact that.
I think there are certain reality setting in of voters' minds and I think the president has had a little of boost in his approval rating but as they get to see -- policies.
Especially as he brings up this ridiculous idea.
Carbon taxes in climate change you're gonna see a whole other ripple -- -- the economy of people getting nervous about what the exact tax rates going to be.
Especially -- when you consider if you look at energy and its impact on our economy it's growing and growing and some of this manufacturing Renaissance we're seeing.
-- -- hundred billion dollars of new projects is because we have this wonderful cheap plentiful energy President Obama is doing his best even scare those folks.
-- watch closely gentlemen thank you very very much in the meantime.
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