WEBVTT

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(clanging)

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♪

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(crackling)

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(crackling)

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(crackling)

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♪

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(bubbling)

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♪

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We view growth
as something positive.

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It\'s great watching
our kids grow up

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or seeing a tree grow.

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Yet we are always aware

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that all growth
must come to an end.

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There is a limit.

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Nature knows no such thing
as infinite growth.

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This rule seems to apply to
every kind of growth but one.

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Economic growth

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is somehow supposed
to continue indefinitely.

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We believed then and now,

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there are no limits
to growth and human progress

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when men and women are free
to follow their dreams.

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And we were right.

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If that growth fails
to materialize, we panic.

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But why?

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As one person recognized
150 years ago,

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growth is
the fundamental principle

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of our economic system.

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Capitalism only works
when the economy grows.

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But Karl Marx recognized
something else as well.

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It is this growth that will
eventually destroy

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the system itself.

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And today,
have we reached that point?

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Is the system
about to collapse?

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Or might infinite growth
actually be possible?

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♪

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The governments don\'t want us
to even question the G word.

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They don\'t even want to put
a discussion around growth.

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If you were looking
at this from the outside,

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an alien arriving
from outer space

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and you\'re looking
at this society,

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you would really wonder
what was going on.

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What are they doing?

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What is this growth
that has to appear

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in every political sentence
and is the basis

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of every economics textbook?

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What is it all about? Is it a--

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Is it a religion
that they have?

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Is it a god
that they\'re chasing?

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Is it a virus
that\'s taken over them?

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And what is this visceral fear

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that emerges as soon as growth
starts to go away?

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♪

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(crackling)

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♪

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(door opening)

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♪

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(chatter)

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(applause)

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The Federation
of German Industries

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is Germany\'s
most influential lobby.

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No German government can
afford to ignore its voice.

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(speaking foreign language)

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(applause)

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♪

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♪

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Where does this
unshakeable belief

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in economic growth come from?

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Has it always been there?

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Is it really part
of human nature?

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♪

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It was through audacious
and imaginative use

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of mass production methods

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that U.S. industry
was able to perform

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its wartime miracles.

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To build more planes

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than all the United Nations
put together.

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To turn out ships
at the rate of 200 a month.

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Ships which carried overseas
the armed might

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of the United States to decide
the outcome of a war.

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The success story
of economic growth

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began during World War II.

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Mass production of tanks
and aircraft

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led the American economy
out of crisis.

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The output
of military equipment

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was now calculated by
a new statistical measure:

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gross domestic product or GDP.

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If production, i.e. GDP, grew,
then so did prosperity.

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Americans believed so firmly
in this new formula

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that they compelled
their allies

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to bring their economic
policies in line with it.

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From then on, it wasn\'t
people\'s incomes that counted;

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it was only growth.

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♪

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And it turned out to be
such a useful measure,

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actually for the war effort

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and for understanding
the war effort,

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that afterwards
there was a lot of effort

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put into building this system
of national accounts,

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having this number, the GDP,

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correctly measured
through the economy.

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And it became, almost...

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incrementally, it became

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the single most important
policy number

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across the world.

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It kind of symbolizes
progress to us.

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Sort of says, \"Wow,
things are getting bigger,

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so they must be
getting better.\"

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That was the birth of the GDP.

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In the three decades
after the war,

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the Western economies grew
up to eight percent annually.

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In the U.S. they called it

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\"The Golden Age of Capitalism.\"

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In France, they were
\"The 30 Glorious Years.\"

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In Germany, it was
\"The Economic Miracle.\"

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An entire generation enjoyed
material prosperity

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and full employment

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and this became engraved in
the collective consciousness.

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Even though these
high growth rates

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were only made possible
by massive wartime destruction,

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the belief in growth
was now unstoppable.

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GDP became the most important
benchmark in history.

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(engine puttering)

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♪

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(shouting)

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♪

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And the economy
and the growth of the economy

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was doing a good job for us
when--when we were young,

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if you like,
when as an economy,

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as a society, we were young.

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And one of the really
important things to say is

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that there are some societies
where that is still necessary,

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where you still need
that growth

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where you still need food,
clothing, and shelter,

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where there are very, very poor

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undernourished people
living on less than the price

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of a skinny latte
from the cafe downstairs.

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And that\'s a--
that\'s a situation

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where growth makes some sense.

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But the idea that,
as human beings,

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all we want ever is
more and more stuff

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doesn\'t really stack up.

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So, after a certain point,
you have to ask yourself,

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\"Well, how much is enough?

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How much more do I need
to grow the economy

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to satisfy human appetites?\"

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(birds chirping)

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(clicking)

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The GDP counts everything
that\'s produced, really.

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Yeah, sure it counts some of
the good things that we need,

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but it also counts,
you know, ambulances

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to clear up carnage
on the streets

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or the rescue efforts

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when an oil tanker
pollutes the ocean.

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To some extent, all of this
is a measure of the busyness

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of economic activity.

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But many of these things,

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even though they are
getting bigger,

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are not really economic growth,

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they\'re more
un-economic growth,

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because they\'re not
delivering welfare.

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Sometimes they\'re
just clearing up

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after the mess we made.

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Sometimes they\'re
really creating mess,

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really destructive production,
if you like,

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of, you know, things that
actually just destroy stuff.

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♪

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The 1970s saw growth rates
sink for the first time,

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due to the oil crisis
and other factors.

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The boom was over,
the market saturated,

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Western economies stagnated.

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Millions suddenly found
themselves unemployed.

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It was uncharted territory.

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For the first time, the limits
of growth became visible:

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economically, socially,
and ecologically.

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(birds squawking)

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♪

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(shattering)

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We do have some understanding
about growth.

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In 1972, a group of scholars

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commissioned by
the Club of Rome

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presented a report
in Washington

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entitled \"The Limits to Growth.\"

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Using a computer simulation,
researchers at MIT

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had calculated
for the first time

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what continuous
economic growth

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would do to the planet.

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Their findings set off
alarm bells around the world.

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When resource consumption
is doubling every 20 years...

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For the first time,
people were confronted

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with the fact
that economic growth

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could also have
negative consequences

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and that the planet\'s
natural limits

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would soon be reached.

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The success story of growth
was in crisis.

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The most important lesson
is that we are near the end

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of a development of society

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which has been going on
for about 2,000 years.

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We\'ve reached levels
of prosperity

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which carry the seeds
of disruption

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and necessitate
a complete re-look

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at the whole world\'s social,

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political, and other situations.

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The Club of Rome report
sold 30 million copies

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and became a global sensation.

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The realization
that exponential growth

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was destroying the foundation
of human life on this planet

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was entirely new
and shocking to many people.

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And yet, soon the scholars
themselves came under attack.

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Their calculations were decried

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as irresponsible fear mongering

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because it\'s impossible
to admit the unacceptable.

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The success story of growth
must continue.

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♪

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Unfortunately, many of
the scholars\' predictions

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turned out to be right
and in many cases,

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reality even surpassed
their bleak predictions.

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♪

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♪

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As the Club of Rome report
was causing

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an international uproar,

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the Brazilian rainforests
in the Amazon basin

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were still nearly untouched.

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The huge Brazilian state
of Mato Grosso,

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largely populated
by indigenous people,

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consisted of forest
and savannah.

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Today, not much of that
is left.

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Since the mid-\'80s,

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progress, aided by
international investors,

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has been eating away
at the rainforest.

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Thirty-five football fields
of forest

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disappear every minute.

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It\'s been the same story
over and over again:

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lumberjacks move in first,

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then cattle breeders,
and finally the soybean barons.

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♪

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(screeching)

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(animals calling,
insects chirring)

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♪

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♪

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(squeaking, slamming)

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(engine puttering)

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The tropical climate delivers

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three to four harvests per year

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and with it, massive profits.

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Soy and corn for export
and animal feed.

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(engine puttering)

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Highway 163 is the gateway
to the Amazon basin.

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It brought lumberjacks,
money, and destruction

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into the forest.

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Today countless trucks
line the agribusiness highway

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transporting
their valuable cargo

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to the international port.

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They pass an endless sea
of soybean fields,

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enormous silos
and slaughterhouses

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through one of the largest
boom regions in the world.

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Growth rates of up to 20%.

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Big business.

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(engine puttering)

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In the \'70s, this region,

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it was just populized
by Indians.

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It\'s just Amazon forest.

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Thirty-four years
just of colonization

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and it\'s
the most important region

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in agribusiness
of the country.

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It\'s the right place
to make new investments,

00:21:38.583 --> 00:21:41.417
to make money.

00:21:41.417 --> 00:21:42.750
Woo!

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Woo!

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Ha!

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Woo!

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Here is the most important,
biggest feedlot

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in this state of Mato Grosso.

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The cattle, a good part
is exported to Russia,

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China, and other countries.

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Here, we work, it\'s just
to classify the animals.

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The cattle goes to the JBS,

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the most biggest meat industry
in the world is from Brazil

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and they have it in other
12 countries around the world.

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-Do you see any limits?
-No.

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Next ten years,
with the technologies,

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what can I say?

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There is no limit.

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The limit is
probably the sky,

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heaven is the limit.

00:22:39.792 --> 00:22:42.417
(buzzing)

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♪

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(birds squawking)

00:22:48.417 --> 00:22:53.709
♪

00:22:53.709 --> 00:22:56.500
(birds squawking)

00:22:56.500 --> 00:23:00.750
♪

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In just a few years

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Mato Grosso\'s untouched
wilderness was transformed

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into the world\'s
largest food factory.

00:23:07.291 --> 00:23:10.083
(engine puttering)

00:23:10.083 --> 00:23:16.834
♪

00:23:50.583 --> 00:23:53.333
(clucking)

00:23:53.333 --> 00:23:56.291
(chirping)

00:24:03.208 --> 00:24:06.166
(clucking)

00:25:07.041 --> 00:25:10.000
(rumbling)

00:25:48.750 --> 00:25:51.625
(drone of helicopter)

00:25:51.625 --> 00:25:52.500
♪

00:25:52.500 --> 00:25:53.959
(siren wailing)

00:25:53.959 --> 00:25:56.125
In response to the crisis
of the \'70s,

00:25:56.125 --> 00:25:58.875
economic policy underwent
a change of course.

00:25:58.875 --> 00:26:02.542
New growth had to be found,
no matter what the cost.

00:26:02.542 --> 00:26:05.583
Even if that meant
unleashing the primal forces

00:26:05.583 --> 00:26:08.750
of finance capitalism.

00:26:08.750 --> 00:26:09.875
♪

00:26:09.875 --> 00:26:12.375
These had been contained
after World War II

00:26:12.375 --> 00:26:14.125
because they were
held responsible

00:26:14.125 --> 00:26:18.208
for the Great Depression
and the war itself.

00:26:18.208 --> 00:26:21.041
(indistinct chatter)

00:26:21.041 --> 00:26:22.250
♪

00:26:22.250 --> 00:26:26.208
Monetarism was
the new magic word.

00:26:26.208 --> 00:26:27.208
♪

00:26:27.208 --> 00:26:28.250
Monetarism was the idea

00:26:28.250 --> 00:26:31.208
that if you put more money
into the economy,

00:26:31.208 --> 00:26:32.792
\"liquidity,\" it was called,

00:26:32.792 --> 00:26:34.834
that additional money
in the economy

00:26:34.834 --> 00:26:36.041
would help real investment.

00:26:36.041 --> 00:26:37.792
That would help
give us more production,

00:26:37.792 --> 00:26:39.959
it would allow us
to consume more goods,

00:26:39.959 --> 00:26:42.125
and we would get
growth back again.

00:26:42.125 --> 00:26:46.333
So this little hiatus,
if you like, in the \'70s,

00:26:46.333 --> 00:26:49.083
primarily caused
by the oil crisis,

00:26:49.083 --> 00:26:53.333
led to a transformation
in the economics

00:26:53.333 --> 00:26:54.625
of our--of our societies,

00:26:54.625 --> 00:26:56.625
and in particular
how we think about growth

00:26:56.625 --> 00:26:59.583
and how we think about
stimulating growth.

00:26:59.583 --> 00:27:02.125
♪

00:27:02.125 --> 00:27:04.834
Governments deregulated
financial markets.

00:27:04.834 --> 00:27:08.208
Banks, insurance companies,
and investment funds

00:27:08.208 --> 00:27:09.041
gained an influence

00:27:09.041 --> 00:27:11.834
and were now allowed
to gamble with currencies,

00:27:11.834 --> 00:27:15.583
stocks, even with
people\'s retirement funds.

00:27:15.583 --> 00:27:16.583
Capital was let loose

00:27:16.583 --> 00:27:21.625
and the financial sector
was flooded with money.

00:27:21.625 --> 00:27:30.667
♪

00:27:30.667 --> 00:27:32.166
It was a pact with the devil

00:27:32.166 --> 00:27:34.458
and the beginning
of the slow process

00:27:34.458 --> 00:27:36.041
of self-disempowerment.

00:27:36.041 --> 00:27:38.875
In exchange for growth,
governments relinquished

00:27:38.875 --> 00:27:41.041
their power
to financial markets.

00:27:41.041 --> 00:27:45.250
But who do we mean by
financial markets and capital,

00:27:45.250 --> 00:27:48.333
and what does it all
have to do with us?

00:27:48.333 --> 00:27:50.709
We can give the go

00:27:50.709 --> 00:27:55.959
to extend, I believe,
yes, getting the head nod.

00:27:55.959 --> 00:27:56.834
The Allianz Group

00:27:56.834 --> 00:27:59.542
is Europe\'s biggest
insurance conglomerate

00:27:59.542 --> 00:28:01.000
and one of the biggest players

00:28:01.000 --> 00:28:02.709
in the global financial market.

00:28:02.709 --> 00:28:05.875
(indistinct chatter)

00:28:06.792 --> 00:28:10.041
And, yes, China contributed
about one percent point

00:28:10.041 --> 00:28:12.917
to global growth,
and next to it, you have India

00:28:12.917 --> 00:28:16.333
with less than 0.2 percent
contribution to growth.

00:28:16.333 --> 00:28:18.083
And that\'s not
a cheap workbench.

00:28:18.083 --> 00:28:21.583
It\'s true, but China is
a little bit struggling

00:28:21.583 --> 00:28:25.875
really to change
their business model

00:28:25.875 --> 00:28:30.041
from investment-
and production-oriented

00:28:30.041 --> 00:28:32.917
to consumption-
and service-oriented

00:28:32.917 --> 00:28:35.583
business model, right.

00:29:18.417 --> 00:29:19.208
If we summarize:

00:29:19.208 --> 00:29:23.458
this moderate
positive growth in China,

00:29:23.458 --> 00:29:27.208
therefore,
also in Asia, overall,

00:29:27.208 --> 00:29:28.917
some kind of moderate growth,

00:29:28.917 --> 00:29:34.125
and in the developed markets
in Europe and the U.S.,

00:29:34.125 --> 00:29:39.125
there are also no new
growth drivers to be seen.

00:30:30.125 --> 00:30:32.458
So, the idea is
the collaboration

00:30:32.458 --> 00:30:36.041
with the world bank
to do projects together

00:30:36.041 --> 00:30:40.083
directly in emerging markets
based on hard currency,

00:30:40.083 --> 00:30:42.500
U.S. dollar or Euro,

00:30:42.500 --> 00:30:48.291
so to avoid the local
currency mortality.

00:31:23.208 --> 00:31:24.917
If we invest
in emerging markets,

00:31:24.917 --> 00:31:27.667
get a nice collateral,
a nice covenant on it,

00:31:27.667 --> 00:31:31.750
so we have a security
that we can sell if necessary,

00:31:31.750 --> 00:31:36.583
like the airplane
in the evasion finance area.

00:31:36.583 --> 00:31:42.208
That\'s a, let\'s say a win-win
situation for us.

00:31:43.125 --> 00:31:44.583
I take that as a \"yes.\"

00:31:44.583 --> 00:31:47.417
(laughs)

00:32:02.500 --> 00:32:07.125
(water lapping, birds calling)

00:32:07.583 --> 00:32:10.542
The money of millions
of insured individuals

00:32:10.542 --> 00:32:12.458
is sent on its way to multiply.

00:32:12.458 --> 00:32:14.542
When Andreas Gruber\'s team
has a rough idea

00:32:14.542 --> 00:32:18.583
to which countries and sectors
the billions should flow,

00:32:18.583 --> 00:32:20.375
they hire an asset manager.

00:32:20.375 --> 00:32:25.500
He determines what stocks
or bonds to invest in.

00:32:34.625 --> 00:32:39.417
Most of our clients are
institutions, companies,

00:32:39.417 --> 00:32:43.000
pension funds,
employers federations,

00:32:43.000 --> 00:32:47.083
also unions, churches,
central banks,

00:32:47.083 --> 00:32:50.500
sovereign wealth
management companies.

00:32:50.500 --> 00:32:54.750
What they want is
they want their money invested

00:32:54.750 --> 00:32:57.208
in the capital market.

00:32:58.667 --> 00:33:04.000
Our customers expect
their capital to be returned.

00:33:04.000 --> 00:33:04.959
They want their money back

00:33:04.959 --> 00:33:07.542
and they want a return
on that capital.

00:33:07.542 --> 00:33:14.625
And the more growth there is,
the higher the return.

00:33:30.709 --> 00:33:41.041
♪

00:33:45.959 --> 00:33:51.875
Worldwide, PIMCO manages
1.2 trillion Euros of assets,

00:33:51.875 --> 00:33:55.959
and in Germany, we are managing
490 billion Euros of assets

00:33:55.959 --> 00:33:58.208
we have under management here.

00:34:06.625 --> 00:34:09.959
So the financial markets,
they have a social role

00:34:09.959 --> 00:34:15.625
in distributing people\'s savings
towards investment,

00:34:15.625 --> 00:34:18.917
and that investment is
usually a form of debt.

00:34:18.917 --> 00:34:24.125
So when you take out a loan,
for example, to buy a house,

00:34:24.125 --> 00:34:25.917
that loan could end up in a bond

00:34:25.917 --> 00:34:29.250
and we could end up
buying that bond.

00:34:29.250 --> 00:34:30.542
So growth is important

00:34:30.542 --> 00:34:33.083
so that individuals
and companies

00:34:33.083 --> 00:34:35.917
who borrow money
in the capital markets

00:34:35.917 --> 00:34:40.375
can actually
pay those loans back.

00:34:44.333 --> 00:34:45.959
Not for this pre-trade.

00:34:45.959 --> 00:34:49.750
Yeah, but you wouldn\'t say
20 pips, wouldn\'t you?

00:34:49.750 --> 00:34:53.125
(indistinct remarks, chatter)

00:34:54.333 --> 00:34:56.625
So there is always debt
in the system.

00:34:56.625 --> 00:35:00.125
We can aggregate that
up to the whole country level

00:35:00.125 --> 00:35:05.041
and without growth,
that debt cannot be repaid back.

00:35:05.041 --> 00:35:07.375
Imagine a world
with a zero growth

00:35:07.375 --> 00:35:13.750
That\'s a world in which pretty
much everything gets frozen.

00:35:13.750 --> 00:35:17.500
If you haven\'t got a job
in this new world,

00:35:17.500 --> 00:35:21.166
with no growth, bad luck,

00:35:21.166 --> 00:35:23.834
you are gonna have to wait
for somebody to retire

00:35:23.834 --> 00:35:26.834
before maybe you get their job.

00:35:28.792 --> 00:35:35.208
A society without growth
probably won\'t work at all.

00:35:35.208 --> 00:35:37.625
Not for long.

00:35:37.625 --> 00:35:42.875
It\'ll degenerate into collapse.

00:35:44.208 --> 00:35:48.166
Without growth, societies
will descend into chaos,

00:35:48.166 --> 00:35:52.083
according to the financial
and political elite.

00:35:52.083 --> 00:35:53.750
But is that really the case?

00:35:53.750 --> 00:35:56.750
Isn\'t it rather
their blind faith in growth

00:35:56.750 --> 00:35:59.000
that leads us to chaos?

00:36:27.792 --> 00:36:38.125
♪

00:36:39.458 --> 00:36:42.291
In the \'80s,
the world of finance operating

00:36:42.291 --> 00:36:44.208
from the city of London
and Wall Street

00:36:44.208 --> 00:36:47.667
increased its influence
on governments and societies

00:36:47.667 --> 00:36:50.834
and became the driving force
of capitalism.

00:36:50.834 --> 00:36:53.875
Today, financial markets,
not governments,

00:36:53.875 --> 00:36:58.333
determine the well-being
of entire countries.

00:36:58.333 --> 00:36:59.166
How did it come to this?

00:36:59.166 --> 00:37:02.875
How could financial markets
gain such influence

00:37:02.875 --> 00:37:05.125
over our lives?

00:37:05.125 --> 00:37:15.458
♪

00:37:20.000 --> 00:37:22.000
One person who knows
the financial world

00:37:22.000 --> 00:37:25.750
better than almost anyone
is Stewart Cowley.

00:37:25.750 --> 00:37:26.583
For nearly 30 years,

00:37:26.583 --> 00:37:29.959
he was a successful
fund manager on Wall Street

00:37:29.959 --> 00:37:31.959
and in the city of London.

00:37:31.959 --> 00:37:33.125
♪

00:37:33.125 --> 00:37:34.583
No, I never planned
to be a fund manager.

00:37:34.583 --> 00:37:37.542
I was a scientist
and I was at Oxford,

00:37:37.542 --> 00:37:39.417
and one night I was playing
in a jazz quartet.

00:37:39.417 --> 00:37:43.000
The drummer was an economist,
we were very drunk.

00:37:43.000 --> 00:37:45.583
I asked, you know,
\"What\'s this thing in the city?\"

00:37:45.583 --> 00:37:46.583
that sort of thing.

00:37:46.583 --> 00:37:47.875
And he told us all about it.

00:37:47.875 --> 00:37:52.709
And I woke up the next morning
with a massive hangover.

00:37:52.709 --> 00:37:55.166
But remembered,
remembered what he said.

00:37:55.166 --> 00:37:58.458
I went to the careers department
at Oxford University

00:37:58.458 --> 00:38:00.458
and got the forms
and filled them in really badly,

00:38:00.458 --> 00:38:04.250
and before I knew it,
I\'d been offered a job.

00:38:04.250 --> 00:38:06.959
And I\'d been offered
20,000 pounds

00:38:06.959 --> 00:38:10.333
to go and start on Wall Street
in 1987.

00:38:10.333 --> 00:38:11.834
And that was the Wild West.

00:38:11.834 --> 00:38:14.333
That was the beginning of it,
really.

00:38:14.333 --> 00:38:16.625
♪

00:38:16.625 --> 00:38:20.291
We went into the new era
of Reagan, Thatcher,

00:38:20.291 --> 00:38:21.875
and liberal trade.

00:38:21.875 --> 00:38:23.959
So what we\'re doing is
we\'re taking

00:38:23.959 --> 00:38:25.583
the corset off the system, yes?

00:38:25.583 --> 00:38:28.625
We went through this process
of liberalization.

00:38:28.625 --> 00:38:31.125
So the so-called Big Bang
in the city

00:38:31.125 --> 00:38:33.542
was all about
financial deregulation.

00:38:33.542 --> 00:38:35.834
\"Let\'s go,
let the market decide

00:38:35.834 --> 00:38:40.417
and let\'s hire people and
let\'s see what happens, yes? \"

00:38:40.417 --> 00:38:41.834
As opposed to
this really kind of

00:38:41.834 --> 00:38:44.667
controlled atmosphere
which we\'d had before.

00:38:44.667 --> 00:38:46.542
And it was that
that we walked into,

00:38:46.542 --> 00:38:50.500
where money now talks,
now money wins.

00:38:50.500 --> 00:38:52.333
And you need people,
smart people,

00:38:52.333 --> 00:38:55.959
to trade the markets and
make finance the powerhouse

00:38:55.959 --> 00:38:59.083
behind capitalism
which it is supposed to be.

00:38:59.083 --> 00:39:02.291
Because all capitalism
functions on debt.

00:39:02.291 --> 00:39:05.500
Functions on money
and in particular, debt.

00:39:05.500 --> 00:39:06.458
And that\'s what it did.

00:39:06.458 --> 00:39:12.000
And that\'s when growth and
inflation exploded in the 1980s.

00:39:12.000 --> 00:39:21.667
♪

00:39:21.667 --> 00:39:23.417
The plan seemed to work.

00:39:23.417 --> 00:39:24.291
Stock markets boomed.

00:39:24.291 --> 00:39:27.625
Growth no longer needed to be
financed by increasing wages

00:39:27.625 --> 00:39:30.875
and tax revenue;
now it was all about credit.

00:39:30.875 --> 00:39:33.834
Governments and individuals
were to take out loans

00:39:33.834 --> 00:39:38.041
from banks and investors so that
they could be good consumers

00:39:38.041 --> 00:39:40.750
and thus generate growth.

00:39:40.750 --> 00:39:42.458
♪

00:39:42.458 --> 00:39:46.083
Credit cards come along,
overdraft facilities,

00:39:46.083 --> 00:39:50.959
lending for houses
becomes widely available.

00:39:50.959 --> 00:39:54.750
And it is at that point
that it explodes.

00:39:54.750 --> 00:39:56.709
That now, it\'s not
just the very wealthy

00:39:56.709 --> 00:39:59.667
who have access to
all these things, consumerism,

00:39:59.667 --> 00:40:03.542
it\'s now people lower down
the income scales as well.

00:40:03.542 --> 00:40:04.625
And if you look at money supply

00:40:04.625 --> 00:40:08.000
and the supply of credit
in the early \'80s,

00:40:08.000 --> 00:40:09.625
it just explodes.

00:40:09.625 --> 00:40:15.041
♪

00:40:15.041 --> 00:40:17.208
It has been
access to consumerism

00:40:17.208 --> 00:40:20.875
and promotion of consumerism
plus debt

00:40:20.875 --> 00:40:26.417
which has created the growth
and created where we are today.

00:40:26.417 --> 00:40:30.333
♪

00:40:30.333 --> 00:40:33.166
When was the last time
you heard anybody say,

00:40:33.166 --> 00:40:36.417
\"I can\'t come out tonight
because we\'re saving up

00:40:36.417 --> 00:40:39.375
to buy a refrigerator.\"

00:40:39.375 --> 00:40:42.875
It just doesn\'t happen,
you know?

00:40:42.875 --> 00:40:44.917
Nobody waits anymore.

00:40:44.917 --> 00:40:47.166
♪

00:40:47.166 --> 00:40:49.959
The cold logic of the market
took over,

00:40:49.959 --> 00:40:53.417
producing winners and losers.

00:40:53.417 --> 00:41:03.750
♪

00:41:04.667 --> 00:41:05.792
You used to be
a poker player,

00:41:05.792 --> 00:41:08.959
is this poker play
with other means?

00:41:08.959 --> 00:41:11.125
Well, yeah, I\'ve
played some poker

00:41:11.125 --> 00:41:12.417
in my lifetime,
I suppose

00:41:12.417 --> 00:41:16.875
a lot of people in
this business have.

00:41:16.875 --> 00:41:21.792
I think that there
is a common feeling,

00:41:21.792 --> 00:41:24.458
that playing cards
or playing Blackjack

00:41:24.458 --> 00:41:27.166
or something like
that is gambling.

00:41:27.166 --> 00:41:29.083
But of course,
we know

00:41:29.083 --> 00:41:30.166
it\'s not really
gambling.

00:41:30.166 --> 00:41:31.333
It\'s taking
into account

00:41:31.333 --> 00:41:33.583
the probability
of certain events

00:41:33.583 --> 00:41:38.417
occurring and placing
wagers accordingly.

00:41:38.417 --> 00:41:41.458
We would call that
the art of speculation.

00:41:41.458 --> 00:41:49.792
♪

00:41:49.792 --> 00:41:51.041
One of the people
who knew best

00:41:51.041 --> 00:41:53.542
how to profit
from this new logic

00:41:53.542 --> 00:41:54.709
was Donald Trump.

00:41:54.709 --> 00:41:57.041
I really think
I have an instinct

00:41:57.041 --> 00:41:59.542
but I don\'t think it\'s
the instinct of a shark,

00:41:59.542 --> 00:42:03.750
I think it\'s the instinct
of maybe getting what I want

00:42:03.750 --> 00:42:07.291
or knowing how
to get what I want.

00:42:07.291 --> 00:42:09.875
Only a few recognized
the profit opportunities

00:42:09.875 --> 00:42:13.500
in this new era
as well as Donald Trump.

00:42:13.500 --> 00:42:14.750
He made large scale purchases

00:42:14.750 --> 00:42:17.041
of derelict New York
apartment blocks

00:42:17.041 --> 00:42:18.333
and promised
to transform them

00:42:18.333 --> 00:42:21.041
into luxury hotels
and apartments.

00:42:21.041 --> 00:42:25.041
He received financing from
banks high on the market boom

00:42:25.041 --> 00:42:27.125
and through
the largest tax break

00:42:27.125 --> 00:42:28.750
in New York City history.

00:42:28.750 --> 00:42:31.917
Trump himself paid
practically nothing.

00:42:31.917 --> 00:42:34.667
Manhattan is
an incredible place,

00:42:34.667 --> 00:42:36.208
where you build
a huge building

00:42:36.208 --> 00:42:37.583
and it\'s sold out
in a matter of days.

00:42:37.583 --> 00:42:39.667
I mean, you know,
you build a building

00:42:39.667 --> 00:42:41.375
with literally
300 or 400 units.

00:42:41.375 --> 00:42:42.291
I\'m building a building

00:42:42.291 --> 00:42:43.792
that\'s one of the
hottest buildings

00:42:43.792 --> 00:42:44.792
anyone\'s ever seen.

00:42:44.792 --> 00:42:46.583
It\'s just selling
like hot cakes.

00:42:46.583 --> 00:42:50.834
Manhattan itself is becoming
a place of the rich.

00:42:50.834 --> 00:42:52.250
Period.

00:42:52.250 --> 00:42:57.041
♪

00:42:57.041 --> 00:42:59.333
Where are your limits,
Mr. Trump?

00:42:59.333 --> 00:43:00.875
Well, I don\'t know
what my limits are,

00:43:00.875 --> 00:43:04.000
but I know that when
I reach my limits

00:43:04.000 --> 00:43:06.375
I hope I\'m gonna
be able to know that

00:43:06.375 --> 00:43:07.875
at that point.

00:43:07.875 --> 00:43:12.583
♪

00:43:12.583 --> 00:43:14.250
The genie was
out of the bottle.

00:43:14.250 --> 00:43:16.792
The brave new world
of financial capitalism

00:43:16.792 --> 00:43:19.250
could no longer
be constrained

00:43:19.250 --> 00:43:21.333
and great efforts were made
to sell it

00:43:21.333 --> 00:43:24.583
as a controllable
and secure system.

00:43:24.583 --> 00:43:26.208
♪

00:43:26.208 --> 00:43:28.375
The whole industry
is based around

00:43:28.375 --> 00:43:29.792
a kind of an illusion.

00:43:29.792 --> 00:43:32.083
And the illusion
of certainty.

00:43:32.083 --> 00:43:34.709
There is a vested interest
if you like,

00:43:34.709 --> 00:43:37.500
inside of the system as it is

00:43:37.500 --> 00:43:39.625
to project knowledge.

00:43:39.625 --> 00:43:40.792
And extra knowledge.

00:43:40.792 --> 00:43:42.959
And that\'s not to say
that the people

00:43:42.959 --> 00:43:45.208
who are in it are telling lies,

00:43:45.208 --> 00:43:49.542
it\'s that they\'re doing their
best with what they have.

00:43:49.542 --> 00:43:52.375
But they really don\'t have
any more knowledge

00:43:52.375 --> 00:43:54.417
than probably you do.

00:43:54.417 --> 00:43:58.792
♪

00:43:58.792 --> 00:44:00.625
The Bloomberg Company
from New York

00:44:00.625 --> 00:44:03.750
plays a central role
in the financial system.

00:44:03.750 --> 00:44:05.917
Since the 1980s,
Bloomberg has provided

00:44:05.917 --> 00:44:08.875
stock traders and bankers
with lightning fast

00:44:08.875 --> 00:44:11.583
price fluctuations
and finance data

00:44:11.583 --> 00:44:13.250
from around the globe,

00:44:13.250 --> 00:44:14.625
making it one of the world\'s

00:44:14.625 --> 00:44:17.709
most influential
media companies.

00:44:17.709 --> 00:44:18.583
Around the clock,

00:44:18.583 --> 00:44:20.875
Bloomberg\'s news agency
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00:44:20.875 --> 00:44:25.041
broadcast the glad tidings
of the free market.

00:44:25.041 --> 00:44:26.500
♪

00:44:26.500 --> 00:44:30.875
Our role in financial markets is
as a provider of transparency.

00:44:30.875 --> 00:44:33.166
We provide
a huge amount of data,

00:44:33.166 --> 00:44:35.125
a huge amount of numbers
on markets,

00:44:35.125 --> 00:44:36.208
on economies, on companies.

00:44:36.208 --> 00:44:40.125
All the things that investors
and companies themselves need

00:44:40.125 --> 00:44:44.542
to operate, to make money can
be discovered through Bloomberg,

00:44:44.542 --> 00:44:46.417
be it through
the data we provide

00:44:46.417 --> 00:44:48.583
or be it in the form
of breaking news

00:44:48.583 --> 00:44:51.208
from our journalists
from around the world.

00:44:51.208 --> 00:44:55.917
It\'s a one-stop shop
for the financial markets.

00:45:00.875 --> 00:45:02.500
We\'re trying
to inform the markets,

00:45:02.500 --> 00:45:04.208
we\'re certainly not trying
to drive them.

00:45:04.208 --> 00:45:05.542
Providing a chronicle
of capitalism,

00:45:05.542 --> 00:45:08.709
telling the story of money,
is vitally important

00:45:08.709 --> 00:45:11.375
to Bloomberg and central
to what Bloomberg does.

00:45:11.375 --> 00:45:14.875
We\'re trying to make
a real-world feel for people

00:45:14.875 --> 00:45:16.709
so that they understand

00:45:16.709 --> 00:45:18.583
what\'s happened,
why it\'s happened

00:45:18.583 --> 00:45:21.583
and what might happen next.

00:45:25.291 --> 00:45:29.458
Economic growth data is one of
the most important numbers

00:45:29.458 --> 00:45:31.125
we look for.

00:45:31.125 --> 00:45:33.166
It provides
a football score

00:45:33.166 --> 00:45:34.667
on the state of an economy.

00:45:34.667 --> 00:45:37.959
Steady, solid growth
in financial markets

00:45:37.959 --> 00:45:42.417
is usually reflected
in solid, sustainable

00:45:42.417 --> 00:45:45.041
growth in economics,

00:45:45.041 --> 00:45:46.750
in demand,
in jobs markets.

00:45:46.750 --> 00:45:49.959
The reason is that
people feel wealthier.

00:45:49.959 --> 00:45:52.959
These are the yields
in Spain, Italy, Ireland.

00:45:52.959 --> 00:45:53.917
They\'re all falling today.

00:45:53.917 --> 00:45:57.333
Bond insurance is falling
across Europe today,

00:45:57.333 --> 00:45:59.083
and those are the commodities,

00:45:59.083 --> 00:46:01.000
the far right-hand side
of your screen,

00:46:01.000 --> 00:46:04.500
after Greece of course
received a deal...

00:46:04.500 --> 00:46:05.542
If you look at the textbooks,

00:46:05.542 --> 00:46:07.500
there should be no limits
to growth

00:46:07.500 --> 00:46:09.083
but if you look in
the newspapers at the moment,

00:46:09.083 --> 00:46:14.000
you get the feeling
there is a break on growth.

00:46:14.000 --> 00:46:17.583
The central question now
is whether

00:46:17.583 --> 00:46:19.375
we\'re in a cyclical slump

00:46:19.375 --> 00:46:22.625
or whether something
structural is going on.

00:46:22.625 --> 00:46:24.375
...nine percent lower,

00:46:24.375 --> 00:46:27.291
biggest drop since 2008.

00:46:27.291 --> 00:46:30.542
And do you have
a personal opinion on that?

00:46:30.542 --> 00:46:32.625
I don\'t have a personal opinion.

00:46:32.625 --> 00:46:34.667
I\'m a journalist.

00:46:34.667 --> 00:46:37.959
I do,
but I\'m not gonna share it.

00:46:37.959 --> 00:46:48.291
♪

00:46:50.000 --> 00:46:51.542
So the history of the world
would suggest

00:46:51.542 --> 00:46:54.500
that man actually
usually gets it right

00:46:54.500 --> 00:46:55.333
quite a lot of the time,

00:46:55.333 --> 00:46:58.125
that when backs
are put against the wall,

00:46:58.125 --> 00:47:00.667
those entrepreneurs,
those investors

00:47:00.667 --> 00:47:04.500
have smart ideas
that can actually flourish.

00:47:04.500 --> 00:47:06.333
If you look back 20 years,

00:47:06.333 --> 00:47:08.875
the idea of Facebook
or Twitter,

00:47:08.875 --> 00:47:11.875
of Apple computers,
of all those things

00:47:11.875 --> 00:47:14.834
that we almost
take for granted these days

00:47:14.834 --> 00:47:16.792
are new sources of growth.

00:47:16.792 --> 00:47:18.542
Yes, the world can
reinvent itself.

00:47:18.542 --> 00:47:22.125
It has done so multiple times
in history.

00:47:22.125 --> 00:47:24.208
You can usually
bet on the human being

00:47:24.208 --> 00:47:27.041
to find a better future.

00:47:27.041 --> 00:47:31.000
♪

00:47:31.000 --> 00:47:35.417
I used Bloomberg throughout
my 28-year career.

00:47:35.417 --> 00:47:37.375
Every single day.

00:47:37.375 --> 00:47:39.041
All these information
systems\' empires

00:47:39.041 --> 00:47:42.959
are based upon people\'s
remaining to have confidence

00:47:42.959 --> 00:47:44.667
in the information
they\'re giving out.

00:47:44.667 --> 00:47:49.291
And the promotion of the
ideology and the narrative

00:47:49.291 --> 00:47:51.000
which finance is based around,

00:47:51.000 --> 00:47:52.125
which has increasingly become

00:47:52.125 --> 00:47:54.917
this kind of game show
approach to things,

00:47:54.917 --> 00:47:58.583
in order to get people to invest
and be interested

00:47:58.583 --> 00:48:01.709
and see the possibilities in it,

00:48:01.709 --> 00:48:04.291
the capitalist message,
if you like.

00:48:04.291 --> 00:48:07.583
For a period of time,
everybody wins.

00:48:07.583 --> 00:48:08.792
That\'s the thing.

00:48:08.792 --> 00:48:09.667
And it\'s stable.

00:48:09.667 --> 00:48:11.208
Mathematically, it\'s stable,

00:48:11.208 --> 00:48:12.834
for a certain period of time.

00:48:12.834 --> 00:48:15.917
And then,
as a number of economists--

00:48:15.917 --> 00:48:18.125
Marx, Keynes have pointed out--

00:48:18.125 --> 00:48:21.625
is eventually,
all of these manias go up a lot

00:48:21.625 --> 00:48:23.875
and then they crash down.

00:48:23.875 --> 00:48:34.208
♪

00:48:40.208 --> 00:48:43.208
There was heavy lobbying
by the financial sector

00:48:43.208 --> 00:48:45.166
on the government to ensure,
actually,

00:48:45.166 --> 00:48:49.625
that this financial sector
growth could continue.

00:48:49.625 --> 00:48:50.458
And governments believed

00:48:50.458 --> 00:48:52.208
that it was in the interest
of the economy,

00:48:52.208 --> 00:48:54.542
because everyone told them,
monetarism told them,

00:48:54.542 --> 00:48:56.667
that if you had all this
liquidity in the system,

00:48:56.667 --> 00:48:58.875
then you must be growing
your real economy.

00:48:58.875 --> 00:49:02.458
But actually what was happening
within that system rather was,

00:49:02.458 --> 00:49:04.166
that you freed up
all this money,

00:49:04.166 --> 00:49:07.375
which was then used
to bet on the increases

00:49:07.375 --> 00:49:08.917
in the value
of certain companies

00:49:08.917 --> 00:49:12.917
and certain shares and of
money itself in the system.

00:49:12.917 --> 00:49:14.834
And the people who
were doing that betting

00:49:14.834 --> 00:49:18.458
were not only profiting from it
but they were also

00:49:18.458 --> 00:49:19.959
the only people who were
regulating the system.

00:49:19.959 --> 00:49:27.458
So it created a huge unstable
and an incredibly unequal system

00:49:27.458 --> 00:49:30.709
in which the rich
got very much richer

00:49:30.709 --> 00:49:32.542
really very fast.

00:49:32.542 --> 00:49:35.959
♪

00:49:35.959 --> 00:49:38.792
For decades,
society has been transformed

00:49:38.792 --> 00:49:40.000
into an enormous market

00:49:40.000 --> 00:49:43.667
to which there\'s
allegedly no alternative.

00:49:43.667 --> 00:49:47.375
The huge sums earned by a few
in the financial markets

00:49:47.375 --> 00:49:50.625
scream for higher returns
and have penetrated

00:49:50.625 --> 00:49:53.041
every corner of the globe.

00:49:53.041 --> 00:49:56.542
New ways are constantly sought
to expand profits

00:49:56.542 --> 00:49:58.291
already in the trillions.

00:49:58.291 --> 00:50:03.250
The world seems to be getting
too small for all the capital.

00:50:03.250 --> 00:50:13.583
♪

00:50:50.291 --> 00:51:00.625
♪

00:51:25.709 --> 00:51:30.083
When I was a kid, I couldn\'t
afford to fly in an airplane.

00:51:30.083 --> 00:51:32.417
I actually joined
the air transport industry

00:51:32.417 --> 00:51:35.041
before I ever flew
in an airplane.

00:51:35.041 --> 00:51:38.041
Today, people take flying
for granted.

00:51:38.041 --> 00:51:39.583
It shaped the way we buy goods,

00:51:39.583 --> 00:51:41.625
it shaped the places
people go to,

00:51:41.625 --> 00:51:44.166
it shaped the meetings
between people

00:51:44.166 --> 00:51:46.500
and different cultures.

00:51:46.500 --> 00:51:48.917
(hum of machinery)

00:51:48.917 --> 00:51:53.917
Over the next 20 years,
we expect the world to need

00:51:53.917 --> 00:51:56.667
32,000 new civil aircraft.

00:51:56.667 --> 00:51:59.125
Passenger aircraft
and freighter aircraft.

00:51:59.125 --> 00:52:03.417
And we expect to sell
a significant share

00:52:03.417 --> 00:52:05.875
of those 32,000.

00:52:05.875 --> 00:52:13.834
♪

00:52:13.834 --> 00:52:17.875
At the moment, around
one billion of the people

00:52:17.875 --> 00:52:22.166
who live on our planet
fly by air regularly.

00:52:22.166 --> 00:52:25.291
The remaining six billion
don\'t yet fly by air.

00:52:25.291 --> 00:52:29.917
And it\'s these people who
will be tomorrow\'s passengers

00:52:29.917 --> 00:52:30.875
and tomorrow\'s customers,

00:52:30.875 --> 00:52:34.667
in addition for those of us
in developed countries

00:52:34.667 --> 00:52:36.750
who take flying for granted.

00:52:36.750 --> 00:52:39.834
Clearly this means that
the biggest scope for growth

00:52:39.834 --> 00:52:43.875
is where the people are and
where the economic wealth is,

00:52:43.875 --> 00:52:45.208
the disposable incomes are.

00:52:45.208 --> 00:52:51.000
So, top of the list come
Asia Pacific, China, India,

00:52:51.000 --> 00:52:55.125
Indonesia, Southeast Asia,
and followed quickly

00:52:55.125 --> 00:52:57.792
by Latin America,
where we see strong growth.

00:52:57.792 --> 00:53:01.667
And a little further behind
but growing strongly

00:53:01.667 --> 00:53:07.208
from a small base is Africa.

00:53:08.583 --> 00:53:13.166
(unintelligible instruction)

00:53:17.875 --> 00:53:21.750
(radio transmission)

00:53:21.750 --> 00:53:23.125
Okay.

00:53:23.125 --> 00:53:27.709
(unintelligible instruction)

00:53:31.709 --> 00:53:34.000
You have to go to China
to appreciate

00:53:34.000 --> 00:53:37.542
how strongly
China has been growing.

00:53:37.542 --> 00:53:41.375
Beijing Capital Airport
has become just recently

00:53:41.375 --> 00:53:43.542
the busiest airport
in the world.

00:53:43.542 --> 00:53:45.625
And that growth
will be continued

00:53:45.625 --> 00:53:47.041
with the new Beijing airport

00:53:47.041 --> 00:53:50.875
as well as the growth
in the major hubs.

00:53:50.875 --> 00:53:53.834
A lot of growth in China.

00:53:53.834 --> 00:54:04.166
♪

00:54:51.291 --> 00:54:56.834
We have delivered
over the last six years

00:54:56.834 --> 00:54:59.458
more than 100
brand-new airplanes

00:54:59.458 --> 00:55:02.417
to the airlines in China.

00:55:02.417 --> 00:55:04.917
Every year.

00:55:04.917 --> 00:55:05.750
In other terms,

00:55:05.750 --> 00:55:12.000
around one airplane
every three days to China.

00:55:13.875 --> 00:55:17.125
Fascinating.

00:55:18.709 --> 00:55:22.583
The changes are spectacular.

00:55:22.583 --> 00:55:29.375
I can\'t imagine,
when I came here in 1994,

00:55:29.375 --> 00:55:35.458
on the streets, you can see
everywhere full of bicycles.

00:55:35.458 --> 00:55:41.125
And today,
if you look at the streets,

00:55:41.125 --> 00:55:43.542
very limited number of bicycles.

00:55:43.542 --> 00:55:48.375
We feel that change
very strongly here.

00:55:51.250 --> 00:55:54.959
But you have more traffic jams
today.

00:55:54.959 --> 00:55:59.125
Traffic jams are
a real headache in Beijing.

00:55:59.125 --> 00:56:03.250
In a huge city like Beijing,
there are too much cars.

00:56:03.250 --> 00:56:06.083
Yes, it\'s another headache.

00:56:06.083 --> 00:56:16.417
♪

00:56:21.625 --> 00:56:26.166
(indistinct conversation)

00:56:26.542 --> 00:56:29.875
(reporting in foreign language)

00:57:08.291 --> 00:57:12.709
Currently we have
slightly more then 200 airports

00:57:12.709 --> 00:57:14.083
in China, in total.

00:57:14.083 --> 00:57:19.709
And every year, in the range of
10 or 15 new airports

00:57:19.709 --> 00:57:20.750
will be built.

00:57:20.750 --> 00:57:23.583
The market is huge
and we are optimistic

00:57:23.583 --> 00:57:27.375
because with
1.4 billion population,

00:57:27.375 --> 00:57:34.667
imagine if everybody can afford
the travel expenses.

00:57:34.667 --> 00:57:37.458
Even a peasant
with low cost business model,

00:57:37.458 --> 00:57:41.500
a worker that is
willing to travel by air.

00:57:41.500 --> 00:57:45.000
The market is fantastic,
you can\'t imagine.

00:57:45.000 --> 00:57:50.291
And I\'ve already seen
the sign of that!

00:57:50.291 --> 00:57:54.333
That\'s why,
every time I\'m asked about

00:57:54.333 --> 00:57:55.709
the perspectives of the market,

00:57:55.709 --> 00:57:59.542
I cannot measure
the dimension of this market

00:57:59.542 --> 00:58:03.792
when I have the reference
of 1.4 billion,

00:58:03.792 --> 00:58:09.166
which is even more important
than the whole of Europe.

00:58:10.625 --> 00:58:11.834
Every 15 years,

00:58:11.834 --> 00:58:15.417
the world fleet
will be doubled again.

00:58:15.417 --> 00:58:18.917
In China,
you don\'t need to wait 15 years.

00:58:18.917 --> 00:58:22.500
In seven, eight years,
we get the fleet doubled.

00:58:22.500 --> 00:58:27.959
It\'s quicker than
in other parts of the world.

00:58:29.000 --> 00:58:31.917
But more air traffic
means more pollution.

00:58:31.917 --> 00:58:34.250
What do you do about that?

00:58:34.250 --> 00:58:40.041
We made every single effort
to try to reduce the emissions.

00:58:40.041 --> 00:58:43.500
But if we look
at the social benefits,

00:58:43.500 --> 00:58:47.333
at the economic benefits
the aviation industry

00:58:47.333 --> 00:58:49.709
brings to the humanity,

00:58:49.709 --> 00:58:55.375
then people may think
differently.

00:58:55.792 --> 00:59:04.000
We are trying to make the world
smaller and smaller.

00:59:04.000 --> 00:59:08.917
To make it a real village.

00:59:08.917 --> 00:59:19.250
♪

00:59:42.709 --> 00:59:45.041
...that was made
at Ober Center.

00:59:45.041 --> 00:59:46.333
That cap.

00:59:46.333 --> 00:59:46.959
Copy that.

00:59:46.959 --> 00:59:51.709
For decades, growth was kept
on life support with debt.

00:59:51.709 --> 00:59:53.792
Only a few
had the courage to say

00:59:53.792 --> 00:59:56.375
that the party
couldn\'t go on forever,

00:59:56.375 --> 00:59:58.291
but no one listened to them.

00:59:58.291 --> 01:00:01.917
In September 2008,
the time had come.

01:00:01.917 --> 01:00:03.458
The house of cards collapsed.

01:00:03.458 --> 01:00:08.041
Okay, Tracy, I\'m cleaning off
the tip of the gun.

01:00:30.458 --> 01:00:32.500
♪

01:00:32.500 --> 01:00:35.542
It\'s a Black Monday
for the American capital market.

01:00:35.542 --> 01:00:37.917
Despite dramatic rescue efforts
over the weekend,

01:00:37.917 --> 01:00:41.542
all efforts to keep the world\'s
fourth largest investment bank

01:00:41.542 --> 01:00:42.959
alive have failed.

01:00:42.959 --> 01:00:46.458
Lehman Brothers is shutting
its doors for good.

01:00:46.458 --> 01:00:49.792
It\'s also, I think, a necessary
part of the clean-up process.

01:00:49.792 --> 01:00:53.125
Lehman we knew was weak,
we expected it to go.

01:00:53.125 --> 01:00:56.333
It\'s not going in the way
that people expected it to,

01:00:56.333 --> 01:00:58.417
but it\'s gone.

01:00:58.417 --> 01:01:01.375
♪

01:01:01.375 --> 01:01:03.750
In the long run, I\'m confident
that our capital markets

01:01:03.750 --> 01:01:07.792
are flexible and resilient and
can deal with these adjustments.

01:01:07.792 --> 01:01:09.625
Can you tell us
how you\'re feeling?

01:01:09.625 --> 01:01:11.083
It\'s awful, I know.

01:01:11.083 --> 01:01:11.709
It sucks.

01:01:11.709 --> 01:01:14.625
But did you see it coming
at all?

01:01:14.625 --> 01:01:16.417
No, I didn\'t.

01:01:16.417 --> 01:01:18.458
♪

01:01:18.458 --> 01:01:20.291
There was a deep shock
in the system.

01:01:20.291 --> 01:01:21.750
There was a sense of,
my goodness,

01:01:21.750 --> 01:01:23.000
we can\'t let this
happen again.

01:01:23.000 --> 01:01:27.208
Governments have to have a
better handle on this system.

01:01:27.208 --> 01:01:27.875
And for a while,

01:01:27.875 --> 01:01:29.667
there were attempts
to do that.

01:01:29.667 --> 01:01:34.000
It lasted probably
a matter of a few months.

01:01:34.000 --> 01:01:40.375
In fact, by the end of 2009
and into 2010

01:01:40.375 --> 01:01:42.792
the very same companies
that had been responsible

01:01:42.792 --> 01:01:44.291
for some of that disaster

01:01:44.291 --> 01:01:46.875
were still engaging
in those same kinds

01:01:46.875 --> 01:01:50.375
of risky trading procedures
that for a while

01:01:50.375 --> 01:01:52.083
had been stopped
in the wake of the crisis.

01:01:52.083 --> 01:01:57.458
So we learned the lesson,
but then we forgot it again.

01:01:57.458 --> 01:01:59.750
♪

01:01:59.750 --> 01:02:03.125
The financial crisis was a huge
opportunity for governments

01:02:03.125 --> 01:02:04.542
to free the world
from its dependency

01:02:04.542 --> 01:02:08.959
on financial markets
and to change the system,

01:02:08.959 --> 01:02:09.917
but they wasted it.

01:02:09.917 --> 01:02:13.500
Instead they did all they could
to revive the old system,

01:02:13.500 --> 01:02:17.959
spending trillions of dollars
to save the banks.

01:02:17.959 --> 01:02:20.083
Then something incredible
happened.

01:02:20.083 --> 01:02:25.375
The banking crisis miraculously
became a sovereign debt crisis.

01:02:25.375 --> 01:02:27.500
Private debt became public debt.

01:02:27.500 --> 01:02:29.333
Governments and their citizens
were subjected

01:02:29.333 --> 01:02:33.375
to austerity policies
under which millions of people

01:02:33.375 --> 01:02:35.333
suffer to this day.

01:02:35.333 --> 01:02:37.083
Banks and stock markets,
however,

01:02:37.083 --> 01:02:40.083
were keen to demonstrate
a sense of normalcy

01:02:40.083 --> 01:02:41.917
as soon as possible.

01:02:41.917 --> 01:02:45.166
In reality,
nothing is as it seems.

01:02:45.166 --> 01:02:47.291
Capitalism survived the crisis

01:02:47.291 --> 01:02:52.417
but no longer functions
like it once did.

01:02:57.667 --> 01:02:59.750
Even though it\'s not as busy
as it used to be,

01:02:59.750 --> 01:03:02.166
this is still
the center of capitalism.

01:03:02.166 --> 01:03:03.166
You can look at all the tourists

01:03:03.166 --> 01:03:05.417
who are outside the building
taking pictures.

01:03:05.417 --> 01:03:08.417
They all still believe this is
the center of capitalism.

01:03:08.417 --> 01:03:14.542
It may not be as busy as before
but it\'s a symbol of something.

01:03:14.542 --> 01:03:18.000
It means something to them.

01:03:23.875 --> 01:03:24.875
Here we have all the visits,

01:03:24.875 --> 01:03:29.542
like when President Bush came
onto the floor and visited.

01:03:29.542 --> 01:03:31.625
That\'s John Thain,
the former CEO

01:03:31.625 --> 01:03:33.542
of the New York Stock Exchange.

01:03:33.542 --> 01:03:34.834
You\'re looking for growth.

01:03:34.834 --> 01:03:36.500
That\'s what all these people
are looking for.

01:03:36.500 --> 01:03:39.750
How to grow their companies,
how to grow the economy.

01:03:39.750 --> 01:03:43.333
How to make more money,
how to employ more people.

01:03:43.333 --> 01:03:46.458
How to get people--
wages growing.

01:03:46.458 --> 01:03:49.333
The whole game here
is how to get growth.

01:03:49.333 --> 01:03:53.458
How to employ people, how to
keep the global economy going.

01:03:53.458 --> 01:03:56.583
That\'s what it\'s all about.

01:03:56.583 --> 01:03:58.500
Come on.

01:04:04.667 --> 01:04:07.625
I\'m sort of like the weatherman
for the stock market.

01:04:07.625 --> 01:04:10.083
I come in every day
and try to figure out

01:04:10.083 --> 01:04:11.583
what\'s going on
in the stock market.

01:04:11.583 --> 01:04:14.417
I talk to trading desks,
I talk to analysts,

01:04:14.417 --> 01:04:16.625
I talk to people who know a lot
about the stock market,

01:04:16.625 --> 01:04:19.041
and I go on the air
and on the Internet

01:04:19.041 --> 01:04:20.500
and explain what\'s going on.

01:04:20.500 --> 01:04:21.917
So, every day I come in
and try to figure out

01:04:21.917 --> 01:04:26.166
which way the wind is blowing
on Wall Street.

01:04:26.166 --> 01:04:28.875
(chatter)

01:04:30.125 --> 01:04:33.709
100,000, open
at 16 dollars and 12 cents!

01:04:33.709 --> 01:04:35.291
Good work!

01:04:35.291 --> 01:04:38.375
(cheering)

01:04:38.375 --> 01:04:40.333
Congratulations,
a big day for all of you.

01:04:40.333 --> 01:04:42.917
Congratulations, and again,
happy to have you.

01:04:42.917 --> 01:04:43.750
Thank you very much!

01:04:43.750 --> 01:04:46.375
This is my favorite part
of my job.

01:04:46.375 --> 01:04:47.667
(chatter)

01:04:47.667 --> 01:04:48.959
Watching people make money.

01:04:48.959 --> 01:04:51.500
Watching capitalism at work.

01:04:51.500 --> 01:04:53.375
-Congratulations.
-Thank you.

01:04:53.375 --> 01:04:55.125
Thanks, Bob.

01:04:59.041 --> 01:05:03.083
So, remember, the SEP 500 is
now 1.5 percent this month.

01:05:03.083 --> 01:05:04.750
We have very clear
market leaders,

01:05:04.750 --> 01:05:08.083
and the reason we\'ve had it
is because better prospects

01:05:08.083 --> 01:05:09.750
for earnings
in the fourth quarter.

01:05:09.750 --> 01:05:12.083
Remember what
the market leaders have been?

01:05:12.083 --> 01:05:13.375
Energy, tech, and banks.

01:05:13.375 --> 01:05:16.625
Lagging today?
Energy, techs, and banks.

01:05:16.625 --> 01:05:18.667
That\'s interesting.

01:05:18.667 --> 01:05:20.959
Thanks, guys.

01:05:20.959 --> 01:05:21.959
Hi, Nancy, how\'re you doing?

01:05:21.959 --> 01:05:26.041
Hey, Bob, let me just
change your battery.

01:05:29.333 --> 01:05:30.291
You can\'t come up and say,

01:05:30.291 --> 01:05:33.041
\"Well, the markets
are just drifting around.

01:05:33.041 --> 01:05:34.417
There is no real meaning

01:05:34.417 --> 01:05:36.083
of anything
that\'s happening today.

01:05:36.083 --> 01:05:38.542
Back to you, Sue.\"
That won\'t make any sense.

01:05:38.542 --> 01:05:40.583
Nobody\'s going to be
interested in that.

01:05:40.583 --> 01:05:42.375
Human beings want stories.

01:05:42.375 --> 01:05:44.750
They don\'t want
an endless list of numbers.

01:05:44.750 --> 01:05:46.834
Nobody\'s impressed
with a list of numbers.

01:05:46.834 --> 01:05:48.166
They want to know
what\'s going on.

01:05:48.166 --> 01:05:51.875
Tell us in plain English
what the markets are doing.

01:05:51.875 --> 01:05:55.458
And that\'s the real skill set
and often that\'s not easy,

01:05:55.458 --> 01:05:58.750
because things
are very complicated.

01:06:01.917 --> 01:06:02.709
Hey, Pisani.

01:06:02.709 --> 01:06:06.083
So what do you think\'s
going on here?

01:06:07.750 --> 01:06:09.834
Yeah.

01:06:09.834 --> 01:06:14.834
Azure Power opened at 16.12,
it\'s now trading at 15.29.

01:06:14.834 --> 01:06:16.041
That\'s kind of a disappointment.

01:06:16.041 --> 01:06:18.709
-Down 15 percent.
-They were very nice, though.

01:06:18.709 --> 01:06:19.792
They were such wonderful people.

01:06:19.792 --> 01:06:23.709
They all came from India to do
the whole solar power thing.

01:06:23.709 --> 01:06:24.709
You know, they were all excited

01:06:24.709 --> 01:06:27.417
and it was just a great moment
to talk to them.

01:06:27.417 --> 01:06:30.417
And they said
they\'ve been watching CNBC

01:06:30.417 --> 01:06:32.542
-for 20 years.
-Aw!

01:06:35.208 --> 01:06:39.667
People have always claimed
that capitalism can be evil

01:06:39.667 --> 01:06:41.583
and capitalism
doesn\'t help people.

01:06:41.583 --> 01:06:43.542
I completely disagree.

01:06:43.542 --> 01:06:45.500
What I see in the last 150 years

01:06:45.500 --> 01:06:49.208
is millions of people
have been lifted out of poverty.

01:06:49.208 --> 01:06:53.208
I personally am a true believer
and still believe

01:06:53.208 --> 01:06:54.917
that the system works well,

01:06:54.917 --> 01:06:58.875
and I\'m committed
to that system.

01:09:04.625 --> 01:09:07.208
Here\'s the news for the day:

01:09:07.208 --> 01:09:09.667
Everybody love each other

01:09:09.667 --> 01:09:13.083
and quit
screwing each other over.

01:09:13.083 --> 01:09:15.417
Be a friend to everybody.

01:09:15.417 --> 01:09:17.917
And don\'t forget,
just \'cause we\'re homeless

01:09:17.917 --> 01:09:20.792
don\'t mean we\'re bad people.

01:09:25.208 --> 01:09:28.166
I think what we\'ve seen
over the last few years

01:09:28.166 --> 01:09:34.542
is cracks in the shiny surface
of capitalism.

01:09:34.542 --> 01:09:36.875
And at first
that\'s what they look like.

01:09:36.875 --> 01:09:38.041
They just look as though

01:09:38.041 --> 01:09:39.583
there\'s something
not quite right

01:09:39.583 --> 01:09:42.625
on the way the light
reflects off it.

01:09:42.625 --> 01:09:48.750
And as you look
more and more closely,

01:09:48.750 --> 01:09:52.041
you see this--
you see that these cracks

01:09:52.041 --> 01:09:54.834
go right to the heart
of the model.

01:09:54.834 --> 01:09:55.959
They go right to the heart

01:09:55.959 --> 01:10:01.250
of the basic ideas
of capitalism.

01:10:01.250 --> 01:10:05.583
♪

01:10:05.583 --> 01:10:08.041
Does capitalism still work?

01:10:08.041 --> 01:10:11.333
Can the system deliver
what it promises,

01:10:11.333 --> 01:10:16.750
providing growth, jobs,
and prosperity for all?

01:10:16.750 --> 01:10:24.667
♪

01:10:36.500 --> 01:10:39.166
(hum of machinery)

01:12:12.709 --> 01:12:15.792
(robotic buzzing)

01:13:21.125 --> 01:13:25.250
♪

01:13:25.250 --> 01:13:27.417
Ever since
the Industrial Revolution,

01:13:27.417 --> 01:13:30.166
machines have been
replacing human labor,

01:13:30.166 --> 01:13:33.458
thereby causing
great societal upheavals,

01:13:33.458 --> 01:13:36.375
but until recently,
they had only replaced

01:13:36.375 --> 01:13:39.083
the physical labor of humans.

01:13:39.083 --> 01:13:40.959
Now machines
are capable of doing

01:13:40.959 --> 01:13:43.375
what makes us humans unique:

01:13:43.375 --> 01:13:44.834
They are able to think.

01:13:44.834 --> 01:13:47.709
It\'s a completely new chapter
in human history

01:13:47.709 --> 01:13:50.250
which will have
massive consequences

01:13:50.250 --> 01:13:52.917
on how we live and work.

01:13:52.917 --> 01:13:56.125
♪

01:13:57.959 --> 01:14:00.041
Can technology think?

01:14:00.041 --> 01:14:01.458
Watson can.

01:14:01.458 --> 01:14:05.375
IBM Watson is a technology
unlike any that\'s come before,

01:14:05.375 --> 01:14:06.875
because rather than
force humans

01:14:06.875 --> 01:14:07.959
to think like a computer,

01:14:07.959 --> 01:14:11.500
Watson interacts with humans
on human terms.

01:14:11.500 --> 01:14:13.500
♪

01:14:13.500 --> 01:14:16.583
You don\'t program Watson,
you work with Watson.

01:14:16.583 --> 01:14:19.542
And through your interactions
with it, it learns,

01:14:19.542 --> 01:14:21.208
just like we do.

01:14:21.208 --> 01:14:23.417
♪

01:14:58.750 --> 01:15:00.375
Are you interested
in talking about

01:15:00.375 --> 01:15:03.333
how I express
and understand emotions?

01:15:03.333 --> 01:15:05.208
I can express emotions
with my voice,

01:15:05.208 --> 01:15:09.166
gestures, and tablet
as well as the colorful lights

01:15:09.166 --> 01:15:11.208
in my eyes and on my shoulders.

01:15:11.208 --> 01:15:13.792
As you can see,
I am a humanoid robot

01:15:13.792 --> 01:15:14.792
created by Aldebaran.

01:15:14.792 --> 01:15:18.500
I\'m a sophisticated combination
of hardware and software,

01:15:18.500 --> 01:15:23.041
designed to interact with humans
and bring them joy!

01:15:23.041 --> 01:15:26.208
-Thank you!
-You\'re welcome!

01:15:51.417 --> 01:15:54.041
(indistinct announcement)

01:15:54.041 --> 01:15:56.417
In the future,
algorithms and robots

01:15:56.417 --> 01:16:00.250
will be able to carry out
nearly every routine task

01:16:00.250 --> 01:16:02.709
previously performed by humans.

01:16:02.709 --> 01:16:04.709
Millions of jobs will vanish.

01:16:04.709 --> 01:16:08.417
These new technologies
do provide economic growth

01:16:08.417 --> 01:16:10.291
but not much in the way of jobs

01:16:10.291 --> 01:16:13.333
and that could endanger
capitalism itself.

01:16:13.333 --> 01:16:16.542
Who will be able to purchase
all the nice things

01:16:16.542 --> 01:16:18.125
mass produced every day

01:16:18.125 --> 01:16:19.375
when there are not enough people

01:16:19.375 --> 01:16:22.250
who can pay for them
with their wages?

01:16:22.250 --> 01:16:25.208
(machinery whirring)

01:16:34.458 --> 01:16:44.792
♪

01:16:48.166 --> 01:16:50.041
Are we all passengers on a plane

01:16:50.041 --> 01:16:53.041
whose navigation system
is broken?

01:16:53.041 --> 01:16:55.959
Are we still in control
of the system

01:16:55.959 --> 01:16:58.625
or is it controlling us?

01:16:58.625 --> 01:17:08.959
♪

01:17:46.041 --> 01:17:46.917
In financial markets,

01:17:46.917 --> 01:17:50.333
algorithms have long since
been running the show.

01:17:50.333 --> 01:17:52.625
Computers interact
with other computers

01:17:52.625 --> 01:17:56.542
in fractions of a second
without any human input,

01:17:56.542 --> 01:18:00.166
and sometimes they do things
that were not planned

01:18:00.166 --> 01:18:04.083
like in the Flash Crash
of May 2010.

01:18:04.083 --> 01:18:06.625
Wow! Almost a thousand points!

01:18:06.625 --> 01:18:08.917
We call this a capitulation!

01:18:08.917 --> 01:18:11.625
They\'re gonna
probably hold trading!

01:18:11.625 --> 01:18:14.208
We can\'t stop the selling!

01:18:14.208 --> 01:18:16.250
The Flash Crash was an incident

01:18:16.250 --> 01:18:20.208
in which markets
essentially disappeared

01:18:20.208 --> 01:18:21.917
for a few seconds.

01:18:21.917 --> 01:18:26.917
The whole event
took maybe 40 minutes,

01:18:26.917 --> 01:18:28.041
but there was a moment

01:18:28.041 --> 01:18:31.291
during this massive
stock market decline

01:18:31.291 --> 01:18:34.792
which was not triggered
by any particular event.

01:18:34.792 --> 01:18:38.000
There was no news,
there was no dramatic change

01:18:38.000 --> 01:18:42.375
in economic conditions
or corporate fundamentals.

01:18:42.375 --> 01:18:45.959
It was simply
a positive feedback loop

01:18:45.959 --> 01:18:49.417
kicked off within
a complex system

01:18:49.417 --> 01:18:51.000
that fed upon itself,

01:18:51.000 --> 01:18:53.583
and suddenly,
all of the computer systems

01:18:53.583 --> 01:18:55.333
that were looking
at the same signals

01:18:55.333 --> 01:18:59.375
in the same ways
all reacted at the same time

01:18:59.375 --> 01:19:04.000
and withdrew their orders
from the market.

01:19:07.333 --> 01:19:10.417
As the market continued to drop

01:19:10.417 --> 01:19:12.125
and risk limits were being hit

01:19:12.125 --> 01:19:17.375
and programs were reacting
in unexpected ways,

01:19:17.375 --> 01:19:20.667
you could see them
getting more and more frantic

01:19:20.667 --> 01:19:22.750
until, at some point,
the head of the firm

01:19:22.750 --> 01:19:25.834
came running out
onto the trading floor shouting,

01:19:25.834 --> 01:19:27.542
\"Shut it off! Shut it all off!\"

01:19:27.542 --> 01:19:29.583
and we just started
hitting Control C

01:19:29.583 --> 01:19:32.375
and killing programs
left and right.

01:19:32.375 --> 01:19:33.500
Any keyboard you could find,

01:19:33.500 --> 01:19:37.667
you killed the program
that was running.

01:19:37.667 --> 01:19:38.834
As you watched the market,

01:19:38.834 --> 01:19:41.750
you could see the exact
same thing was happening

01:19:41.750 --> 01:19:43.458
on every other trading floor,

01:19:43.458 --> 01:19:46.000
because orders were
just disappearing

01:19:46.000 --> 01:19:48.166
out of the market.

01:19:48.166 --> 01:19:50.250
♪

01:19:50.250 --> 01:19:51.750
It was that moment
where you\'re sort of

01:19:51.750 --> 01:19:56.208
staring into the abyss
and you\'re saying to yourself,

01:19:56.208 --> 01:19:58.458
\"What\'s gonna happen now?\"

01:19:58.458 --> 01:20:00.208
It doesn\'t make any sense.

01:20:00.208 --> 01:20:01.500
There\'s nothing economically

01:20:01.500 --> 01:20:05.917
that would explain why a market
would just be gone.

01:20:05.917 --> 01:20:07.834
♪

01:20:07.834 --> 01:20:10.375
-Yeah!
-Good job!

01:20:10.375 --> 01:20:12.208
Yeah!

01:20:12.208 --> 01:20:13.417
Yes!

01:20:13.417 --> 01:20:14.458
♪

01:20:14.458 --> 01:20:16.959
The modern financial market,
it has become

01:20:16.959 --> 01:20:20.500
what would be called
a complex adaptive system.

01:20:20.500 --> 01:20:22.709
Humans cannot control
complex systems.

01:20:22.709 --> 01:20:28.000
That\'s the fallacy
of how we approach regulation

01:20:28.000 --> 01:20:30.250
and oversight
of a complex system.

01:20:30.250 --> 01:20:33.750
It can\'t be done, because
we can\'t understand them.

01:20:33.750 --> 01:20:36.417
There\'s too much going on.

01:20:36.417 --> 01:20:37.542
(distant sirens blaring)

01:20:37.542 --> 01:20:42.792
Do you think we have lost
control of the system?

01:20:47.333 --> 01:20:48.041
I don\'t know.

01:20:48.041 --> 01:20:51.875
Have we lost control
of the system?

01:20:53.458 --> 01:20:57.166
Maybe control is overrated.

01:20:58.625 --> 01:21:03.959
Maybe it\'s okay to not
necessarily be in control,

01:21:03.959 --> 01:21:08.583
provided the economy
is working for everyone.

01:21:08.583 --> 01:21:10.959
Now, I don\'t think
it\'s working for everyone.

01:21:10.959 --> 01:21:15.250
The economic system
is not functioning as it should

01:21:15.250 --> 01:21:17.125
and the benefits
are not accruing

01:21:17.125 --> 01:21:20.667
to as many people
as they could be.

01:21:20.667 --> 01:21:21.917
♪

01:21:21.917 --> 01:21:26.125
The Flash Crash also came
and went without consequences.

01:21:26.125 --> 01:21:28.917
In fact, the capital
turnover rate

01:21:28.917 --> 01:21:30.792
has accelerated since then.

01:21:30.792 --> 01:21:34.417
Today, computers interact
in nanoseconds.

01:21:34.417 --> 01:21:39.417
A nanosecond is
a billionth of a second.

01:22:22.333 --> 01:22:24.083
In this room,
that\'s what we do here,

01:22:24.083 --> 01:22:25.166
we have an on/off switch.

01:22:25.166 --> 01:22:28.667
There is really
no human intervention.

01:22:28.667 --> 01:22:32.667
I really don\'t believe
in leaving the room

01:22:32.667 --> 01:22:38.375
and letting something
trade unattended.

01:22:38.375 --> 01:22:39.750
It\'s about being there

01:22:39.750 --> 01:22:44.083
with the creation that,
you know, you\'ve worked on.

01:22:44.083 --> 01:22:46.458
Even if I--no,
you don\'t control it,

01:22:46.458 --> 01:22:47.250
but you watch it.

01:22:47.250 --> 01:22:52.917
Is it doing everything
that you designed it to do?

01:22:56.417 --> 01:23:00.375
I really don\'t interact
with economists

01:23:00.375 --> 01:23:03.667
and policymakers,
so I\'m gonna have to say

01:23:03.667 --> 01:23:05.458
there\'s really not much
of a connection.

01:23:05.458 --> 01:23:08.750
If there was a strong connection
between the two,

01:23:08.750 --> 01:23:11.667
you would think
that firms in my space

01:23:11.667 --> 01:23:16.166
would have need for people

01:23:16.166 --> 01:23:22.625
with that kind
of economic background.

01:23:23.500 --> 01:23:24.750
As I said, who do we hire?

01:23:24.750 --> 01:23:28.333
We hire scientists,
technologists, and lawyers.

01:23:28.333 --> 01:23:33.208
We don\'t hire MBAs,
we don\'t hire economists.

01:23:34.208 --> 01:23:36.542
There are many
mathematical models

01:23:36.542 --> 01:23:41.375
that come out of fields
such as horse betting

01:23:41.375 --> 01:23:44.125
that are used in our business

01:23:44.125 --> 01:23:49.041
as fundamental pieces
of algorithmic trading.

01:23:49.041 --> 01:23:53.875
We somehow project,
in our capitalist society,

01:23:53.875 --> 01:23:59.500
this idea that this
is a safe environment

01:23:59.500 --> 01:24:03.500
for people to build up
their retirement on.

01:24:03.500 --> 01:24:06.959
It\'s actually a hyper
competitive environment

01:24:06.959 --> 01:24:12.417
and, you know,
depending on the product,

01:24:12.417 --> 01:24:15.583
sometimes I feel safer
going into a casino

01:24:15.583 --> 01:24:19.208
than trading certain products
in our space.

01:24:19.208 --> 01:24:23.917
So, this idea that, um...

01:24:24.917 --> 01:24:27.834
...that markets are...

01:24:28.917 --> 01:24:32.166
...somehow going to support

01:24:32.166 --> 01:24:37.041
a very, very large base
of the population

01:24:37.041 --> 01:24:39.709
and produce returns for them

01:24:39.709 --> 01:24:41.834
when, in our space, all we do

01:24:41.834 --> 01:24:44.959
is try to eliminate
those returns.

01:24:44.959 --> 01:24:48.083
I mean, that\'s the job.

01:24:50.000 --> 01:24:52.083
It is a very different world

01:24:52.083 --> 01:24:56.750
than the way it\'s advertised
to the general public.

01:24:57.959 --> 01:25:01.375
♪

01:25:01.375 --> 01:25:03.083
Financial markets
are out of control

01:25:03.083 --> 01:25:06.667
and no longer have
any connections to reality.

01:25:06.667 --> 01:25:09.542
While algorithms and robots
produce growth,

01:25:09.542 --> 01:25:12.417
they only provide work
and prosperity for a few,

01:25:12.417 --> 01:25:15.709
and it\'s this growth
that\'s destroying our future

01:25:15.709 --> 01:25:16.750
on the planet.

01:25:16.750 --> 01:25:19.917
The signs that something has
gone wrong with our system

01:25:19.917 --> 01:25:22.333
have become impossible
to overlook,

01:25:22.333 --> 01:25:26.041
so why do we consistently
ignore them?

01:25:26.041 --> 01:25:27.792
♪

01:25:27.792 --> 01:25:28.875
Even though ordinary people

01:25:28.875 --> 01:25:33.000
actually don\'t have so much
trouble with the idea

01:25:33.000 --> 01:25:37.792
that you can\'t go on growing
on a finite planet.

01:25:37.792 --> 01:25:39.166
Actually, most people get that,

01:25:39.166 --> 01:25:40.667
because it\'s very, very basic.

01:25:40.667 --> 01:25:46.083
There is nonetheless
a political consensus

01:25:46.083 --> 01:25:48.125
and an institutional consensus

01:25:48.125 --> 01:25:52.166
for which that vision
is incredibly important,

01:25:52.166 --> 01:25:55.041
it\'s incredibly,
deeply embedded.

01:25:55.041 --> 01:25:57.750
And so what you have is
it\'s almost like a--

01:25:57.750 --> 01:26:02.709
it\'s almost like a kind of
collective schizophrenia

01:26:02.709 --> 01:26:03.583
that on the one hand

01:26:03.583 --> 01:26:05.667
we can see
the blindingly obvious,

01:26:05.667 --> 01:26:07.208
it\'s staring us in the face,

01:26:07.208 --> 01:26:10.917
and it is at one level

01:26:10.917 --> 01:26:14.917
something that even--
even my kids,

01:26:14.917 --> 01:26:17.208
school kids can get

01:26:17.208 --> 01:26:20.834
that you just don\'t go on
growing and growing forever

01:26:20.834 --> 01:26:23.125
when you\'re in a finite place.

01:26:23.125 --> 01:26:27.125
And the only mechanisms
from biology

01:26:27.125 --> 01:26:30.083
or from nature
that we see that do that

01:26:30.083 --> 01:26:33.834
end up basically
killing their host.

01:26:45.041 --> 01:26:45.792
This is for TV.

01:26:45.792 --> 01:26:49.375
I\'ve gotta go
to the debate in Las Vegas

01:26:49.375 --> 01:26:51.250
and I have to do my show
from out there,

01:26:51.250 --> 01:26:52.000
so this is--

01:26:52.000 --> 01:26:54.625
the network puts all this stuff
together for me.

01:26:54.625 --> 01:26:56.750
I\'m telling you,
I\'m dressing a lot better now

01:26:56.750 --> 01:26:58.542
than I was
before I did television,

01:26:58.542 --> 01:27:00.875
\'cause they even
hire you a stylist.

01:27:00.875 --> 01:27:02.667
You know what I mean?

01:27:02.667 --> 01:27:05.291
You guys look like shit,
so you obviously don\'t know

01:27:05.291 --> 01:27:06.125
what I\'m talking about,

01:27:06.125 --> 01:27:10.166
but this is some
really nice clothing.

01:27:10.166 --> 01:27:12.250
The most powerful name
in financial television,

01:27:12.250 --> 01:27:15.542
-Wall Street Week is back.
-Do you have some news?

01:27:15.542 --> 01:27:17.750
Skybridge actually
purchased the rights

01:27:17.750 --> 01:27:20.291
-to Wall Street Week.
-Skybridge Capital

01:27:20.291 --> 01:27:22.125
and its managing partner
Anthony Scaramucci

01:27:22.125 --> 01:27:25.875
are reviving the iconic
Wall Street Week program.

01:27:25.875 --> 01:27:26.750
It\'s a show about money

01:27:26.750 --> 01:27:29.458
developed by people
who work in money.

01:27:29.458 --> 01:27:32.917
I view myself
as a capital artist.

01:27:32.917 --> 01:27:37.291
This company that
I\'ve created is my canvas.

01:27:37.291 --> 01:27:39.959
I know you guys in the media
don\'t like capitalism,

01:27:39.959 --> 01:27:41.417
but, you know,
someone had to pay

01:27:41.417 --> 01:27:43.166
for the camera
and the microphone,

01:27:43.166 --> 01:27:45.083
so, I mean,
at the end of the day,

01:27:45.083 --> 01:27:46.917
the capitalist system
is the only system

01:27:46.917 --> 01:27:50.834
that we\'ve been able
to design that works.

01:27:51.500 --> 01:27:55.834
Wall Street is still,
whether people like it or not,

01:27:55.834 --> 01:27:58.750
it\'s part of
the participatory engine

01:27:58.750 --> 01:27:59.583
to financial growth.

01:27:59.583 --> 01:28:02.333
Let me just give you
a perfect example:

01:28:02.333 --> 01:28:04.000
The American fracking process,

01:28:04.000 --> 01:28:06.917
the technological solution
is created.

01:28:06.917 --> 01:28:11.417
You then need to mobilize
capital into that solution,

01:28:11.417 --> 01:28:12.458
to create the energy.

01:28:12.458 --> 01:28:14.792
Now, some environmentalists
don\'t like it

01:28:14.792 --> 01:28:16.291
and we can have
a huge debate about that,

01:28:16.291 --> 01:28:19.333
but at the end of the day,
this was an innovative idea

01:28:19.333 --> 01:28:23.959
that\'s unleashed a tremendous
amount of surplus energy

01:28:23.959 --> 01:28:29.375
that the world didn\'t expect
15 or 20 years ago.

01:28:30.667 --> 01:28:32.750
Let\'s talk about growth, okay?

01:28:32.750 --> 01:28:35.208
There is a perception right now

01:28:35.208 --> 01:28:38.041
in these elitist academic salons

01:28:38.041 --> 01:28:39.500
that we\'re not gonna
grow anymore.

01:28:39.500 --> 01:28:41.417
Well, that\'s just
flat out wrong.

01:28:41.417 --> 01:28:45.500
If you study 5,500 years
of human history,

01:28:45.500 --> 01:28:47.792
we know that human beings
are designed

01:28:47.792 --> 01:28:50.375
to have great
intellectual curiosity

01:28:50.375 --> 01:28:51.125
and to innovate.

01:28:51.125 --> 01:28:53.166
There are so many things
that we\'re gonna do

01:28:53.166 --> 01:28:54.166
over the next 50 years

01:28:54.166 --> 01:28:56.959
that\'s gonna shock everybody
in terms of our capability.

01:28:56.959 --> 01:28:59.792
We\'re gonna pull asteroids down
from the asteroid belt

01:28:59.792 --> 01:29:02.125
that are loaded with platinum,
that will probably be

01:29:02.125 --> 01:29:03.959
where the first trillionaire
comes from.

01:29:03.959 --> 01:29:06.875
We\'re gonna unlock
the ability to stop aging

01:29:06.875 --> 01:29:09.917
or to destroy cancerous cells
in our bodies.

01:29:09.917 --> 01:29:12.417
All of this innovation
is ahead of us,

01:29:12.417 --> 01:29:14.583
and there\'s tremendous
opportunity for growth.

01:29:14.583 --> 01:29:18.125
You\'re gonna grow as long
as you get the tax policy

01:29:18.125 --> 01:29:21.917
and you get
the economic regulations right

01:29:21.917 --> 01:29:23.834
and you create
the incentive to grow

01:29:23.834 --> 01:29:26.041
and you send a message
from Washington

01:29:26.041 --> 01:29:27.083
that we\'re open for business.

01:29:27.083 --> 01:29:29.083
You wanna see
three percent growth,

01:29:29.083 --> 01:29:30.000
four percent growth?

01:29:30.000 --> 01:29:34.417
You\'ve gotta change
the academic view of this stuff

01:29:34.417 --> 01:29:36.291
and talk to
real time practitioners

01:29:36.291 --> 01:29:38.208
that understand
how to grow businesses

01:29:38.208 --> 01:29:41.875
and create innovation
in the economy.

01:29:41.875 --> 01:29:44.583
There will always be growth
on the planet.

01:29:44.583 --> 01:29:48.208
There will always be
a jagged line upward

01:29:48.208 --> 01:29:49.125
for human beings,

01:29:49.125 --> 01:29:52.333
because that\'s been the case
for 5,500 years,

01:29:52.333 --> 01:29:53.667
and as long as we don\'t
blow each other up

01:29:53.667 --> 01:29:55.792
with nuclear weapons,
it will be the case

01:29:55.792 --> 01:29:58.875
for the next 5,500 years.

01:29:58.875 --> 01:30:04.125
♪

01:30:04.125 --> 01:30:06.875
(helicopter buzzing)

01:30:06.875 --> 01:30:11.083
♪

01:30:11.083 --> 01:30:14.667
There\'s a sense of desperation
to this strategy.

01:30:14.667 --> 01:30:18.333
There\'s a sense of having,
for a decade or so,

01:30:18.333 --> 01:30:22.750
recognized there might be
some limits

01:30:22.750 --> 01:30:27.500
to our ability
to continually grow the system.

01:30:27.500 --> 01:30:30.125
And now we\'re tired
of that idea.

01:30:30.125 --> 01:30:33.125
We don\'t want to be
so realistic in the world.

01:30:33.125 --> 01:30:38.959
We would much rather
have a total fantasy

01:30:38.959 --> 01:30:39.917
for our guiding star.

01:30:39.917 --> 01:30:42.083
We would like
to have this vision,

01:30:42.083 --> 01:30:44.750
\"No, we don\'t have to think
about curtailing growth,

01:30:44.750 --> 01:30:47.750
we have to think about
making growth even stronger.

01:30:47.750 --> 01:30:49.000
We have to go harder for it,

01:30:49.000 --> 01:30:51.041
we have to make America
great again.

01:30:51.041 --> 01:30:52.917
We can all be billionaires.

01:30:52.917 --> 01:30:55.667
We can all have
property empires.\"

01:30:55.667 --> 01:30:57.667
And of course, it\'s an illusion.

01:30:57.667 --> 01:31:02.542
It goes back to exactly
that same simple basic fact.

01:31:02.542 --> 01:31:04.417
We live on a finite planet.

01:31:04.417 --> 01:31:07.625
There isn\'t the space
for the dream

01:31:07.625 --> 01:31:11.583
of this reinvigorated
growth fetish.

01:31:11.583 --> 01:31:15.959
This is a round trip
for Donald Trump...

01:31:15.959 --> 01:31:17.875
We live in extraordinary times.

01:31:17.875 --> 01:31:20.875
Our world is becoming
increasingly complex

01:31:20.875 --> 01:31:22.458
and many are disappointed
to find

01:31:22.458 --> 01:31:26.709
that they are worse off
than they used to be.

01:31:26.709 --> 01:31:28.917
But instead of doubting
the economic system,

01:31:28.917 --> 01:31:33.166
they turn to those who have
profited from it the most,

01:31:33.166 --> 01:31:37.625
those who continually
promise new growth.

01:31:37.625 --> 01:31:40.458
For these empty promises,
more and more people

01:31:40.458 --> 01:31:44.125
are apparently willing
to sacrifice democracy,

01:31:44.125 --> 01:31:47.667
peace, and their environment.

01:31:47.667 --> 01:31:51.125
Capitalism has reached
a new level of escalation,

01:31:51.125 --> 01:31:54.709
but is no longer suited
to the world we live in.

01:31:54.709 --> 01:31:58.250
Its end is closer than we think.

01:31:58.250 --> 01:32:08.583
♪

01:32:43.250 --> 01:32:46.792
Are you an optimistic
or a pessimistic person?

01:32:46.792 --> 01:32:49.333
I don\'t know, I don\'t know
that I\'ve ever reflected on it.

01:32:49.333 --> 01:32:53.709
You can\'t do this to me
at this point in an interview.

01:32:53.709 --> 01:32:55.709
Am I an optimist?

01:32:55.709 --> 01:32:56.959
Yes.

01:32:56.959 --> 01:32:58.875
Optimism is an act of will.

01:32:58.875 --> 01:33:02.083
Optimism is what, um--

01:33:02.083 --> 01:33:04.333
is what a football team

01:33:04.333 --> 01:33:06.166
has to hold
to the very last minute,

01:33:06.166 --> 01:33:09.458
even if it\'s a goal behind,
if it wants to win.

01:33:09.458 --> 01:33:12.542
And I think, you know,
Gramsci once said,

01:33:12.542 --> 01:33:14.542
\"It\'s pessimism
of the intellect,

01:33:14.542 --> 01:33:15.542
it\'s optimism of the will,\"

01:33:15.542 --> 01:33:20.709
and this is not just
a snappy thing to say.

01:33:20.709 --> 01:33:23.000
It\'s actually the most
constructive thing to say.

01:33:23.000 --> 01:33:25.750
We gain nothing really
from pessimism

01:33:25.750 --> 01:33:28.375
and we gain everything
from being optimistic

01:33:28.375 --> 01:33:30.250
about the future.

01:33:30.250 --> 01:33:40.583
♪

01:34:03.417 --> 01:34:13.750
♪