Also in this playlist...
This transcript is automatically generated
-- Raymond James joins us now maybe Morse perspective on this and and done other things that are going on in the markets but more capital.
No future bailouts -- mean obviously the goal of not being able to bail out these banks again is a it is a -- one I would think.
Fred but what do you make of what the Fed is -- trying to accomplish here.
Well I think they're trying to obviously walk a tight -- between.
Not tightening too much on the one hand and supporting.
More discipline in the lending function.
And more discipline in the terms -- risk management the balance sheet and you know this all goes back to what happen in 20082009.
And the libertarians.
They are probably felt.
Just let the banks go.
And obviously that might have had you know pretty pretty dire consequences in the short term.
You know I think part and parcel that would have been letting General Motors go as well.
But the bailout of General Motors obviously you know there's a lot of other political pressures all these all these matters of course have tremendous political.
-- -- it's not as if we operate in a in a free enterprise vacuum we do not.
-- -- and -- -- the point where do you think we are now because it's all right to have these.
I guess agility to academic discussions about what if we would have let the banks go -- mean it was a mass spec that is -- sometimes you remember us.
You know in hindsight you remember differently than actually was -- -- -- use real nerve wracking times as our bullet the -- -- not as easy as that many would argue especially those.
On Wall Street it sounds like Europe.
That -- but now we are a couple years removed from that were able to have this bigger picture.
Discussion do you think we're moving in the right direction and will we ever be at a point where this goal of no bail outs can be realistically accomplish two things.
I think he can be I think regulations -- going to drive that without question.
And I think the but you know -- again let's remember we have a lot of other considerations here besides our economy.
You know there's -- -- debate in Washington now let's reduce transfer payments and let's increase taxes each one of which unto itself.
-- job growth and it depresses the GDP it's a conversation makes no sense and that people and -- -- each side of the island dug in on their position.
The Republicans -- -- taxes which -- with which I agree.
And let's reduce entitlements which -- in the absence of really corrupt entitlements I don't agree -- -- -- It sounds good on paper to say it one way or the other but then you say what's the actual application of all -- I want to zero in and on the present day -- if we can.
You know the markets up today were back about 50000 fine.
Nicole talked about the yacht manufacturing.
-- -- talked about factory orders today with the other manufacturing data -- came out yesterday with a big jobs report on Friday so even though it's a holiday week to very very important week.
The economy's the next few minutes of another guess coming up in a moment with some other thoughts but who want to talk about where we are where do you think we are in the recovery right now.
Well I think you know I I think that the capital markets.
Are not necessary reflective of what's going on -- the underlying economy.
So if you look at GDP growth over the last five years which has been supposedly a recovery it's been a fairly lukewarm recovery.
I think there is good structural reasons why.
The stock market's going to continue to be relatively robust we're gonna have.
You know periods of consolidation -- and you know step back which is good for markets quite honestly we don't create too much of a bubble here.
But by the same token there structural reasons you know the interest rate.
Demonstrated that this fixed income -- interest rates are so low the other side that argument of course to the side of describing that.
People have to chase returns and then doing it -- this is not gonna work in the in the short term in the intermediate term which is one of the reasons people are going into the equity markets that is I think equity markets we'll continue strong.
Filter by section