Hospitals Counting Beds Again

Business Week on iTunes, SoundCloud, bl Bloomberg dot com. You can also listen to our radio show at two pm Eastern on Bloomberg Radio every weekday, or watch us on YouTube by searching Bloomberg Global News. Investors. They are perhaps rightly worried about this spike that we're seeing across the country in coronavirus cases, especially in the sun Belts. This is not a disease. We know that summer is going to just sort of take away from us. Uh, the

numbers are scary. John Tazzi is healthcare reporter for Bloomberg. He joins us on the phone from Queens And you know, John, I grew up in Houston, and so I look at what's going on in that city. I look at Texas and it's really troubling and a little bit scary. Help us understand where we are because two months after, almost three months after we were facing this in New York City,

we're back to counting beds again. Yeah, I mean, I think it's a really concerning situation, um, as you said, and you know, not just in Texas, but a number of states um Arizona, California have recently set records for new cases um and you know, we we are seeing a rise in hospitalizations as well. So you know, sometimes new cases are just an indication of more testing. But I think there are an increasing number of positive tests, uh,

and an increasing number of hospitalizations. And you know, the concern I think everywhere is to avoid getting to a point where hospital systems are, uh, you know, are overwhelmed that they have you know, not that they don't have enough debts to treat the patients they have coming in right, so much so that as you you know, put in your story that late yesterday the Texas Children's Hospital System in Houston began accepting adult COVID nineteen patients because of

a surging demand. I do wonder John and your reporting. Have those states that are now dealing with surges and cases and and increasing hospitalization, have they learned anything? Are they better prepared than we were potentially here on the East Coast, you know, where it just kind of I think safe to say no one expected it, you know, to to shoot up as much as it did, and I think a lot of people were caught uh not, you know, unprepared. So I just wonder our hospital systems

across the country better prepared now. UM. I think there are a lot of valuables in play. I think in some ways, yes, um, you know, everybody has now had uh some time to sort of see this coming and you know, to begin uh stockpileing uh personal protective equipment, UM you know in medicines, UM, you know, and to kind of really look carefully at their plans around how they are going to create surge capacity uh if they

need to, um you know. But there are some other um factors that uh, you know pulling the other direction. In New York in uh in March and early April, basically everything stopped. People were not getting uh medical care for you know, non emergent issues other than COVID. A lot of schedules. Care was just canceled for weeks um in order to give the hospital's capacity to uh, you know,

to treat the COVID surge. Um. In most of the country, elective surgeries are have resumed and hospitals are treating patients you know who who couldn't put up care indefinitely for you know, really serious issues in some cases, so you know, they're balanced thing that as well, along with you know, the kind of rising number of um of coronavirus cases,

so being a little bit prochial here. How much do we need to worry in the Tri state area, which is starting to get back to work, where we it feels like, have been assured along the way that New York and and states surrounding would be ready if there was a second wave. What have we learned? What do we need to be worried about, especially because of what

happened uh here before? Um. Well, I think that what the epidemnologists will tell you is that the potential for more spread of the virus exists everywhere, right because most of the population is still susceptible. So even though you know in New York that the number of people testing positive is very low, now and it feels much safer

than it did, certainly a couple of months go. Um, you know, there's nothing to say that, you know, we won't be in a similar situation to what we're seeing in in Texas and Arizona again at some point down the line. And I think, you know, hospital systems everywhere are you know, considering, um, you know what they have to do to prepare for for uh, that kind of situation.

And you know, one of the messages I think we're hearing from Health US victuals no, no, you know what I was just gonna say, just to wrap up, is I love the way you wrap up your story. And there's a quote I believe from one physician who talks about that even if the health system is as prepared as we can be, if we see the degree of COVID cases and hospitalizations and it keeps growing exponentially, Um, this doctor says, I don't know if even the best

preparation of the world would be enough. And it just is once again, Um, you know, Jason, a repeat of you know you can prepare and prepare about when those numbers go off the chart, it's really tough to keep up. And that's potentially what we could see again. Um, John, thank you so much, really appreciate the story. And you're reporting. John Tazzi, healthcare reporter at Bloomberg News, joining us on

the phone in Queens, New York. And Jason, listen, you know here we are once again check out most red on the Bloomberg terminal there are. You know, for a while the virus updates was trending much lower in terms of what everybody was reading on the terminal. It's back up again. We've been here before. We've seen this movie and and I think we didn't like it the first time, and we like it even less this time. So we're

gonna keep a close eye on this for sure. Eager to get some time later with the dean of the Stanford Medical School and get his perspective on what they're seeing from a medical perspective. We have leaned heavily on doctors and deans like him to give us a real reality check in terms of preparation, but also, you know, some prescriptive advice on what should we what we should be thinking about when it comes to work in life and all of it. I have advice for you, Jason,

wear a mask, yeah, and social distancing. Yeah, I'm just going to put it out there. Sorry, Sorry for the sarcasm. Large family grew up on sarcasm. Alright, it's not even sure it's sarcastic at this point, it's just direct. You're absolutely right. This is Bloomberg Business Week with Carol Masser and Jason Kelly on Bloomberg Radio. Well, today was day three of Bloomberg Global Amazing event wrapping it up actually right now, I believe they're wrapping it up here in

the US. So it went around the world. It was in Asia, Middle East, Europe, and the United States obviously, and during the European portion. This morning I got to catch up with Bruce Flat. You've met him. We've spent some time with him out in l a and elsewhere. He's based in New York. He was in London. He's got a global portfolio. They are a massive real estate investment, massive real estate, infrastructure, renewables. We talked about all of it.

Check out a portion of this conversation. I would just say that, you know, leave aside the health um impact of everything. Um, the only thing constant in life is changed. And uh, we've witnessed from all across the world, the closing down of offices and the opening up of offices, and we're we're virtually opened up all of our offices globally and we're back up at some office in London here we're probably New York were thirty um and you know, so the numbers have been have been going back up

and it's taken us three months. It's been stressful for a lot of people. But um, you know the bottom line, this will pass, and this is the crisis of the day. But we'll look back at it, um and some small things are going to change. Bought a lot of going back to where they were, and we'll have another crisis in the future. I'm sure, um that will be just as bad as this one. When you're in the middle of it. So what are those small things that have changed?

Because you have a window literally in figuratively into how we work. We spent so much of our time at the office, we spent shopping, you also have a window into that. What are the things that you see that will change in the short to mid term that we should be thinking about. Yes, so for offices, once we shut down office buildings around the world and that people

went home, we started thinking this three months ago. We started thinking about what is it that we need to do get those offices back open, and that has included all of the things that you have seen if you're in an office today or you will see when you shortly go back, which is there's more distancing, elevators are have spacing out, there's more cleaning. Our air is better than what you're breathing in your house because we are um taking particles out of the air that we never

took out before. So all of those things are happening in office buildings today and they are going to be some of the safest places in the world to be in the future. UM In In in retail, there's no doubt. There was this trend that was going on, and the trend was online and good retail. We're moving together and retailers were using them together as one UM space to deliver goods to customers, and that's going to be accelerated.

There's no doubt. Uh. With curbside pick up probably increasing and other things happening, the trends that we're happening are going to continue to UM increase, some of them exponentially as you come out of this. And it's safe to say, and I know that this is your business, but you're still long office as a way of working. You've talked several times over the past few weeks about the power

of people being together and those sorts of things. I think we're seeing that manifesting even in our social lives. Help me understand that a little bit. So here's what I would say. Our our view is that office space. After talking to virtually every company that we lease space

two um that they're bringing their people back. The only the only reason some are saying we're actually not bringing back everyone right now is they don't have they don't have enough space to be able to have social distancing. While that's important to bring everyone back, So they may be bringing back of the people because of that, but eventually they're going to bring them all back. And I guess the point I would make, and I think this is in our company, but it's in other companies we

talked to. The office is about the social interaction of people that creates a culture in a business. The spontaneity and the collaboration that comes from an office is incredibly important to a business, and you can't create that by video conference. Uh, you can maintain it for a while, and that's what we've all done for a little while. But you really can't do that over the longer term.

So offices are going to be incredibly important as they were before, and in fact today, um, Jason, we're actually releasing greater amounts of space to people than they had before because they want to accommodate all our people and get them back quickly and uh, and so they're increasing their footprints versus getting taking less. That's fascinating. But you

can go either way, right Jason. People can either you know, reduce their footprint and either have people out in the suburbs or working from home, or they can increase their footprint in the big cities to give everybody more space so that they feel comfortable. So that's and I listen, I've heard the death of major cities. How many times? How many times have we heard it. I don't think that's going to happen. I just think we're gonna have to figure out new ways. I think cities are going

to change. I think you're going to have you know, I was talking to some people on the heels of this conversation, you know, because lots of people wanted to talk about what Bruce had to say, and you know, it's interesting. I think we're going to be living in a hybrid world. Um. You know, I just think about my experience this week alone, you know where it's like I spent a couple days in the office here I am, I'm doing the show, you know, with you. I did

the show with you yesterday in a totally different location. Um. You know. Obviously, different people's jobs require different things at different times, and you know, I just I do think though the structure of cities could change. You know, one of the things we talked about later on in the conversation, prompted by an audience question, was does the architecture and

design of cities change? And this is something you've talked about, which is do we move to a place where actually we want a little more space, so we need more walkable spaces, we need more space for outdoor dining, and so does that change the way cities look and feel?

I think it's possible. It's so funny. For the first time I went into our local supermarket just recently, which has been like it was kind of a big thing for me because we've just stayed away and it was I gotta say it was a clean place to begin with.

It was cleaner, it was really organized, there was more space, like the aisles were open and there were you could only walk one way down, And I have to say, to some extent, maybe we need to rethink some of the way things are built and on a grander scale cities. I gotta say the city has gotten crowded. There's a lot more cars because of Uber and Lift, And I'm not saying those need to go away, because I think

they have provided great services. But I think we need to think about it's a walking city, and it's become much more difficult to do that. So let's figure that out. Yeah, I think in order to do that, though, you've got to figure out public transportation. And I've yet to take public transportation, so I can't judge it um fully. But the reality is is that that has to be clean. I mean it has to be clean beyond clean. And by all accounts, the MTA has done a great job.

But the thing we have to worry about is large groups of people, right listen, and it's needed to be cleaner than what it's been. Okay, I'm just gonna put that out and I know, it's really tough when you think about my husband. I were talking about the numbers that ride it on a daily basis. When everything is normal, it's unbelievable. But it can be better, and I think we need to figure that out. So um fascinating to hear his conversation. And I think stay tuned everyone in

terms of how things play out. But cities I still love. They love it well. You and Bruce flat your long cities, your long offices. So we'll see where that goes. Check that whole interview out on Bloomberg Live dot com. This is Bloomberg Business Week with Carol Messer and Jason Kelly on Bloomberg Radio. In today's Bloomberg Business Week, Economics, we want to look at the interesting and complicated and often problematic relationship between the FED and acid bubbles. Great voice

to have to talk about that. He put out some research. Joe Kalish is back with us. He is chief Global macro Strategist at ned Davis Research, and he joins us on the phone from Sarasota, Florida. Joe, it is so good to have you back with us. How are you. I'm doing well, Carol, Thanks for having me back. Well, it's great to have you back. And you know, it's interesting we've heard from the FED a lot lately. J Powell a lot, and certainly various FED governors you dig into.

First of all, kudos and thank you because you give props to our own Mike McKee here at Bloomberg News. And the question that he asked J. Powell at the last press conference, why don't we kick off there? What? What kind of intrigued you about that question? I thought Michael really zeroed in on some really critical questions that the said is going to need to grapple with I think longer term, and what we as investors need to grapple with and policymakers need need to deal with it,

and and and essentially, you know, Michael asked to two things. One, uh was on the question of acid bubbles and whether the FITS policies were helping to UM promote that. And the second one was as a consequences would have said therefore contributing to wealth inequality. There are a lot of questions at the press conference about income inequality, but Michael focused on on the wealth and equality aspect. So I

think both of those were really UH important. UM questions to ask and and and and essentially, you know, the Fed chairman UH said they really didn't have much choice, that they weren't hitting their goals in terms of maximum employment and price stability. UM, that you know, they were really couldn't be concerned with the level of asset prices. And and he really kind of you know, sidestepped the

whole question about um wealth inequality. UM. But he also did you know, I think Michael is also asking about um, you know, financial stability, and I thought, UH, Chairman Powell's way of framing that was to go to the banks

and say, well, the banks were better capitalized. H And that's true, but in other areas of the Monetary Policy Report, they it flags some issues with households and businesses and non bank financials, so um, you know, he started put them more a little bit more of a positive and in the actual report, well, it's tricky. It gets to the heart of what we've been talking to so much

about here at Bloomberg. UH. And in light of the virus, to be quite honest, and also what happened in Minneapolis and the killing of George Floyd, and again we're talking about inequalities, racism, in America and we're once again having that discussion of wealth creation versus income, you know, and where we're seeing the gaps, and there's a lot, uh and a wide gap in America when it comes to

who has the wealth and who does not. And you certainly get into that, you know, lots of questions about the FED and central banks, you essential banks and their role in creating bubbles. Your point is, I mean, we can learn from the past, and I guess the past has shown us that the FED doesn't necessarily think a lot about the bubbles they're creating. Well, they may be aware from but I guess they feel there's not much

they can do about it. So the most famous one was the so called a rational exuberant speech that form ofthe Chairman Greenspan gave in December ninety six. And at that time the NASDAK was around twelve hundred or so, essentially climbed to five thousand. So you know, I think the attitude on the part of the policymakers is that they really can't identify a bubble, uh, and they'll just

deal with the aftermath. And we have a very similar situation two thousands with the housing bubble and you know that the said was very slow to react to that, and then they kind of let asset prices go here up until you know, the COVID crisis and just let let the you know, stack prices continue to rise and without much concern. To be fair though, and and you know, and I know you listened to the in Burg. I mean, as we've had many discussions for a long time, it

felt like the FED was the only game in town. Uh. And we've certainly seen relief come from from the US government, but the FED was certainly looking at ways to calm the markets, you know, make it easy to make sure that money was flowing throughout the economy, especially in the early days of the crisis and the shutting down of

the economy. And so, you know, is it fair to say that you at least you know, understand kind of what the FED is thinking about and what it's watching and maybe what it kind of almost had no choice but to do and to make it and kind of set the path for potentially creating another bubble. Well, the problem is they really didn't have a choice because if they didn't do those things would be a whole lot worse.

Well that's no, but that's my point. That's my point exactly that they didn't really have a choice, right, They really didn't have a choice. They had to restore the functioning and of the financial markets number one, which I think they've done a pretty good job of doing that. Um. And then because of the huge uh you know, setback we've had in the economy, Uh, you're actually restoring some wealth can be helpful in terms of spending, and that

could help support the economy. So you know, I'm not saying it's not necessary, but my point was, you know, in that the financial markets basically have a green light to go where they want to go, and the FIT is not going to come in and stop it and pop it. Well, and I just just got about thirty seconds here, Joe, So do you see a bubble and what that bubble might be at this point? Just quickly so? So, um, you know, I think there's a limit on how much

uh you know, the treasury rates can go down here. Um. You know, I think we kind of explored where those lows were not just in the US, but but globally. Um. And in terms of stock market evaluations, I see those is more fairly proh. There's a measure I'd like to look at on a forward basis, right looking at the Triple Bonniels and and we're close to zero today on the equity risk premium um and we never went below that during the entire two thousand nine to two thousand

That's that's great. Yeah, that's great perspective. UM, Joe, thank you so much. Nice to get some time with you on this Wednesday. Really appreciate Jo Kayleish, his chief Global macro Strategies at ned David's Research, joining us on the phone in Sarasota, Florida. This is Bloomberg Business Week with Carol Masser and Jason Kelly on Bloomberg Radio and our

weekly Bloomberg Green segment. We're gonna take a look at the common traits that are often found in leaders who really really move the needle when it comes to sustainability. So let's get right to that story. I feel like I love when we get to specifics. Emily Chason is Sustainability editor Bloomberg New She joins us on the phone once again in New York City. UM, Emily, good to

have back with us. Tell us about this story. I'm just curious about they said, Okay, you're gonna go talk to leaders and find out what's in come and tell us how it came about and what you found out. Yeah, so thanks so much for having me again, Kara Um. This is a really interesting topic right now because there's so much systemic change in the system right now. There's a pandemic, there's climate change, there's um huge issues around

inequality and social justice. And who are the types of leaders who can solve those problems and identify these issues sooner rather than later and pivot and make changes in't that? So what we did was we talked to Russell Reynolds Association, which as a recruiter, and they have been looking at the traits of leaders at the companies that are sort of scoring the best unsustainability UM. That's companies like Unilever,

companies like Hilton Hotels UM. They were un Global compact to sign those and what they found was there were some traits that sort of make a sustainability leader and some traits they might be born with. I have to just say just kind of a call out and maybe a little flex for Jason and me, but we have talked to both the head of Hilton, Christmas Set and Alan joke of Uni Leaver. So we have talked with them, Yeah, exactly, exactly, So, UM, tell us a bit more about what those traits are. Yeah.

So well, the first one they found was being a multi level systems thinker and being able to incorporate systems thinking into your your leadership style. Right. And then there were also people who wanted to actively include stakeholders in their talks and really you know, understand the issues of stakeholders and UM bring them in, not in terms not managing them, not telling them what to do, but to

bring them in and bring them along. UM. The other one was disruptive innovation UM and being able to challenge traditional approaches and cut the bureaucracy and sort of figure out where those tradeoffs are between profitability and sustainability. And the last one was having sort of a long term mindset.

So they found these four ideas and it wasn't necessarily that leaders were born with them a lot of times maybe they were, but sometimes they wake up to them across the course of their career, like they go through a UM transformative business opportunity and say, oh my gosh, wait,

I can think differently about this. Yeah, I mean, and man as you said, we are seeing this so across the board right now in this moment, right I mean, in this moment where a CEO isn't allowed to I shouldn't say it is allowed, isn't able to just like jet around the world and sort of hop from place to place. They're usually in one spot. They're having to

deal with everything that's in front of them. Uh. And one of those things, obviously, are these big issues of equality, which demand a level of accountability and transparency that we just have not seen leaders subjected to in a long time, if ever, Carol, Yeah, I think it's a really good point.

And there's another story in the terminal and and we I don't know if you saw this too, but it talked about E s G investors, those who run E s G funds, you know, and they're constantly saying to other companies and leaders like, hey, where's your diversity, we're your sustainability, And now they're looking at their own firms and finding out, oh wait, we're not doing so well on that Market's just kind of, you know, kind of

blows your mind. And it's great that I think people are finally really understanding what it means to be either diverse or sustainable. You know, it has to be all the way around. Yeah, it's definitely important to be authentic and all of these things sort of walk the walk

um to talk to talk um. So we also talked to the Carlisle Group, which is that what the Impact report this week on what they've been doing, and we asked them about, you know, how are you seeing this in the real world, and they said that the management teams that really focus on where the world is going versus where it has been are the ones that are generating great financial performance. Interesting. Yeah, I mean, and I will say private equity in in many ways, and Emily,

you and I have talked about this before. We've been at some of the same conferences around investing, and you know, the private equity fronts for all of the slings and arrows that they take it in many ways, they seem to have kind of gotten religion around impact over the past few years. You know, you think about what KKR is doing, Carlisle you mentioned, and others, you know, and not to mention the ones who are very focused, uh specifically on this, like Generation which I know, our Gore Shop,

which you've spent some time with. Yeah, definitely. A lot of them are focused on this right now. KKR actually had a deal this week on water Um. There's a lot of thinking about the thing. You know, it would look at those long term trends. We want to happen to them right now, especially in private equity, and especially in finding those leaders who can make the pivots necessary

to build the infrastructure of the future. Well, and not for nothing, but what the private The reasons the private equity guys have gotten religion around this, as you well know, Emily, is because they can make a lot of money, and and these executives that they can attract can make a lot of money, and so you know, not surprisingly Hilton, you know, not necessarily a sustainability player and impact play, but private equity back. So really interesting, all right, Emily Chason,

thank you so much. Good to catch up with you. Our sustainability editor for Bloomberg joining us on the phone from New York City. Sustainable leaders have these traits in common. Check that out on the Bloomberg or Bloomberg dot com. Pretty interesting, right, yeah, totally interesting. But I think you know you and I've talked about too about everybody. Okay, let's do another focus group, let's talk about the problem.

Blah blah blah. You know this is getting down to okay, what makes a leader a really great leader in creating a diverse workforce, a diverse supply chain. Like, let's get down to the stace. How do you do That's that, that's what That's what creates it. Doing stuff. There's our next T shirt. Yeah, doing stuff, Just do it. Just do good stuff. At a boss a long time ago, he said, just do good stuff. He didn't give any direction other than that, but that's the way went did.

But it was pretty clear message. Yeah, just can you say it's like it makes sense. You're listening to Bloomberg Business Week on this Wednesday, Carol Master along with Jason Kelly. It is time to cut you down to the closing bill. Aaron Kennon is back with us. He's co founder and chief executive officer at Clear Harbor Asset Management. Back with us once again on the phone from Greenwich, Connecticut. Aaron,

good to have you here with us. You know we've been talking with you certainly throughout the year and throughout this crisis. Um, I don't know how has your outlook on the markets, on the economic rebound maybe changed over the last few months. Well, great to be back, Carol, thank you. Um, well, let's see. I mean, certainly we are going through a period where there's this huge divergence right between the the equity markets and the real economy.

Now that that's not necessarily a new thing, but the degree to which we're seeing a divergence is quite uh significant, meaning that you know, the equity market tends to be a discounting mechanism. It tends to recover or start to recover ahead of a recovery in the real economy. But you know, to come thirty nine, not including today, off of that March twenty three low is quite a significant. I think there's a lot of optimism built in the equity markets and when we you know, sort of look

at the divergence even within the equity market. Um, I think it really details a tale of two stories. Um the technology piece is in a bowl market and the financial piece is very much in a bear market. And I think that's really sort of proven itself out maybe perhaps since we last spoke. And so where does it go from here? Do you think, Karen? Well, I think as as we wade through this crisis, it's going to be long. They're going to be a lot of speed bumps, Jason,

and UM. I believe that, you know, the technology sector is an asset light sector that's focused on providing productivity to their clients, to their corporations. UM. In this period of future deglobalization, where you're going to have supply chains moving all around the world, technology is going to play a key role in that effort. I think companies with strong balance sheets, with strong management, and strong capital allocators more generally are going to capture some market share during

this crisis. They have been capturing markets or during this crisis, and will be even stronger as we come out the other side. So I think that trend continues. In The real question in our minds at Clear Harbor is well, what about valuations and UM? Technology valuations have become you know, quite quite lofty across the board and UM. But you know, you look at the banks and they're they're in a

bear market. UM. Net interest margins are are collapsing, loan loan growth is certainly a problem UM, and and the credit picture is being butchered by the Fed. So UM, go ahead here, No, you know what I was thinking, Aaron, They're listening to you what you said about technology, and I certainly agree with you, but I got it to say, I look at my world and increasingly, I mean, Jason and I are doing our radio show because of technology,

and everybody is working at home because of technology. And I feel like, despite what the outlook is, if there's any one consistent theme that we can count on, and I know it's been what's propelled the market's higher, you know, coming off the crisis, but it is technology, absolutely, so I would be in in plead agreement with that. And um, and I think you know, we we do have points

of concern across the economy. I mean, certainly if you look at the SP five as in its entirety trading at you know, pick your number, but it probably best case twenty four times two thousand and twenty one earnings, so that that's a lofty multiple. UM. Corporate debtloads are are high. We saw the record high yield issuance this month, and um, you know that's that's all very much supported by by FED policy. Around the fallen angels. Unemployment, I

think it's a huge question mark. And I've been hearing a lot about the rise in the savings rate. Um, it's at a record. I don't think we saw a savings rate spike like this in our entire lifetime. And some of you that as a positive that there's cash on the sidelines. Well, you know, can I just can

I just jump? Because Jason and I talked about this yesterday, you know, as our reporting Ben Steve Berman put out a story that you know, yea that Americans have some money on the sidelines, but there is still consistently, you know, research showing that most Americans out there don't even have enough money to deal with like a car bill of four hundred dollars like that money on the sidelines. Some people are gonna have to live on that. And I know,

well that's right, that's absolutely right. And and the money on the sidelines is is it an indication of optimism or is an indication of of anxiety? What will be the catalyst for altering that anxiety level? And so, you know, you mentioned the FED Arran and I feel like history will be very kind. I've said this on this program before to j Powell and his cohorts for what they

have done. Don't fight the FED obviously has been one of the mantras that We've heard over and over again from both institutional and individual investors, what do you think the FED cannon should do next or what can we expect them to do next? Well, I think they're going to continue to provide um, you know, college stimulus, um monetary growth for as long as far as the eye can see. And I think the fiscal side, trickularly heading

into a president presidential election, will do the same. So expect another fiscal stimulus package four point oh coming along next month. But I also think the FED is stuck because they're trying to weaken the dollar. They would never say that they are, but the world is faced with this COVID crisis. It's not just the US economic slowdown, and so it's difficult, you know, for the U S Dollar to, you know, which is a flight to quality currency along with the en to depreciate here in the

midst of this global uncertainty. And I think that's one point of a real frustration for the FED right now. Do you think the Fed's creating another bubble? And it's just piggybacks on a conversation that we have with Joe Kalis earlier Na Davis's research, and you know, the Fed, doesn't you know, they're doing what they can to how about this economy, but as a result, maybe not so concerned about bubbles. They haven't been in the past. We

need to be concerned about that. Aaron, Well, I mean, I think the FED is caught between a rock and a hard place. Certainly, they're creating some bubbles. Some are maybe identifiable now and some will be identifiable uh later. But that isn't to say that the FED policy to try to sort of keep this economy flow, which was sort of a government induced initiative to close down the economy,

is not warranted. I mean, I think the FED is is in a is in a very difficult position, but they have a lot of firepower, and I think they'll continue to provide liquidity and will liquidity to allow for insolvency rage to decline. I think that's a big question and only time we'll tell on that. All right, Aaron Kennan, thank you so much. We're gonna leave with their co founder CEO Clear Harbor Asset Management joining us on the phone from Greenwich. Thanks so much for listening to Bloomberg

Business Week. Download the podcast on iTunes, South Cloud of Bloomberg Dot com but wherever you get your podcasts, and of course you can always listen to our radio show at two pm Eastern on Bloomberg Radio, or watch us on YouTube by searching Bloomberg Global News