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So here on money we always bring you perspective from the biggest names in business -- Pagliuca is co managing partner.
A Bain Capital and he's a corner of the Boston Celtics as well.
We were both at the -- -- state of the markets conference today in New York City to talk about the biggest things moving markets right now.
China has a lot of investors very worried.
Probably -- got found out though has a completely.
I think it's a little overblown you know that the Chinese have done a great job of managing their economy.
And it is more managed economy.
What they're really trying to do is his his shrink down -- shadow banking segment.
They're really not after that the -- -- and you -- I think in the last couple days.
They've actually open up the window for the based banks their concern was.
Shadow banking was -- high real estate prices and speculation.
And so they try to take some money out of the system to send a message that they wanted that the banks they had who actually investing and also lending in the shadow banking companies -- to pull back from that.
So so I think -- will moderate you know that approach I think they've sent the message.
And and so so I think they're gonna get back on track.
Any heavy hitter -- and try and manager bubble deflated slowly it seems like there's negative effects -- that -- anticipated you can actually also create bubbles by having the wrong policies right.
So I think they're pulling back the policy is never perfect.
But but but I don't I don't see a kind of dramatic.
You -- in the future around the world right now take me -- a little -- around the globe where do you see opportunity where do you see growth where do you -- danger.
From a private equity perspective.
There is opportunity everywhere so there are opportunities to slow growth markets -- up his investment markets and if you if you go to the US are the real opportunities and health care you know as health care system reforms.
As we now count -- more more technology to both make health -- lower cost higher quality.
There are many many -- software processing and -- types of service.
There opportunities that the spinning out of it and not only fueled guesses directly but all the economic growth is happening at all.
Yes the service providers to 22 -- gas fracking companies.
And the US is it general is the best place in terms of rule of law and and portability capital of governance.
So it's still very good market to invest into Europe didn't react as quickly as we did that to the that -- prices as you know.
The banks really kind of amended extended there they didn't really face up to the issues like the US did.
And so the banks are still struggling a bit.
The economy is struggling a bit India I would I would say it you know really proceed with caution there it is it that that -- had a lot of promise.
But certainly we had many -- coverage that found it's tough to do business there that the rule of law isn't -- -- perfect governance is is is a problem.
So we're very cautious and and if we do business in the -- has been fantastic partners China.
-- I think the key is is growth of investing -- companies that can take advantage of what's happening economically there.
And then in Japan we've actually had some great success in Japan because they have a very.
Many many many under -- businesses you know they have used policies to two you know not create shareholder value many cases they're starting to wake up to that.
And and we've had success there because elected business with a bank capital.
Who actually can come in and help grow those businesses and -- get them on the right track how do you see private equity changing or being different.
Over the next decade it's got to continue.
To develop capabilities to add real operative value companies the good news is.
It is very well positioned and made -- this rumor global.
And we can help companies do exporting we can help companies set up in other countries.
We we can -- enormous amounts of value that the two issues the US faces are.
Are this what do you do with the stimulus and how do you pull that back we've seen issues on that list reported as.
And the second issue is it and I think again like education is a long term issue that we really have to -- -- The size of are our deficit politicians are -- are not rewarded for long term thinking.
So to me that makes -- how -- this problem -- hope that's the real problem is are they going to wait.
Two we get to an apparent or an actual prices to -- it.
Yeah portion of the politicians have you know only reacted to crisis and and we try to create the fiscal -- crisis.
That didn't happen.
And so everybody's vote.
It's all the same the that -- and and the problem for the country is in Greece everything was fine and people -- the beach and there's abuse -- until wasn't fun.
And everything's going to be fine here until it isn't fine.
What's the crisis having you say very air on the beach -- is -- to know they're not human traits will spike up and and people lose confidence in the in the currency in the system.
You know if you if you step back because -- -- gas boom because of the economy's doing better and increase tax revenues.
A little -- off because of deficit of -- dollars going up to 600 billion.
-- I don't think that's a good thing 600 -- it is still a very large number and you know at some point we've got to get this imbalance.
And I'm not espousing that we -- -- a one year but just sitting down with the congress and the president saying let's get a ten year program to get this balance.
Would be -- great thing and hopefully we can all pressed for that in this room.
Do you think the Fed gets out of this clean the issue for the government is too you know just as it is with the deficit.
To slow walk our way out of out of this expansionary policy.
And they've got to be very careful of what they say when they say it I think they kind of have to just do it and do it cautiously over a period of time.
So I think they've got a really tough job on their hands to kind of you know put the genie back in the bottle.
But the solution is going to be just like with a deficit is going to be 88 you know five to seven year plan.
To smooth that out and get -- back to -- was.
He also sad that cheap energy from the share revelation of the appeal for manufacturing in -- savior to our economy.
Yes he's been watching Monday he also ran for senate as a Democrat and -- Democrat right good stuff are.
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