Odd Lots

In this engaging discussion, Gillian Tett, a Financial Times columnist and Cambridge academic, dives deep into the world of complex financial derivatives. She reassesses the legacy of the 2008 financial crisis, questioning the perception of complexity as inherently negative. Tett explores how understanding these instruments could reshape economic discourse and shares insights on the evolving landscape of capitalism. She also highlights the challenges of transparency in derivatives markets and the role of non-bank financial institutions in today's economy.

Jim Egan, a Morgan Stanley housing strategist known for his insights on mortgage trends, dives into the current state of the American housing market. He highlights the stark divide between homeowners with ZIRP-era mortgages and those without, revealing how low, stable payments have insulated some from financial strain. Egan also discusses rising inventories and the potential for a nationwide price downturn, emphasizing the complexities of consumer debt amidst high interest rates and evolving mortgage dynamics. It's a captivating look at today's financial landscape.

Back in May, President Trump announced this big plan whereby American tech giants would participate in major AI projects in both Saudi Arabia and the United Arab Emirates. The announcement has created divisions within the White House, and more generally among people who are thinking about the intersection of artificial intelligence and geopolitics. One argument is that this is great news geopolitically, because it gives American technology a beachhead in this crucial region. Another argument is that by exporting the chips abroad, it creates a possibility that some of the technology will leak to China, or benefit China in some way. On this episode we speak with Bloomberg News reporter Mackenzie Hawkins, who covers tech and geopolitics in Hong Kong, about the deals, the divisions, and what to watch next as the US looks to maintain its edge in these key areas. Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox now delivered every weekday plus unlimited access to the site and app. Subscribe at  bloomberg.com/subscriptions/oddlotsSee omnystudio.com/listener for privacy information.

Stephen Miran, Chair of the Council of Economic Advisers, sheds light on the Trump administration's economic vision. He discusses the implications of sweeping tariffs aimed at revitalizing U.S. manufacturing and the ongoing tax cuts designed to spur growth. Miran addresses challenges like inflation and job dynamics, while exploring the balance between fostering business and ensuring national security. The conversation also critiques economic forecasting and emphasizes the interconnectedness of domestic policies and global competitiveness.

Harvard Professor Ricardo Hausmann, a leading expert in economic complexity, returns to discuss the implications of trade wars, focusing on the U.S.-China dynamic. He explains how tariffs might stifle the U.S.'s ability to manufacture advanced goods. Hausmann uses the metaphor of trees and monkeys to explore how nations evolve through trade. He emphasizes the importance of specialization in economic growth and warns about the risks of simplifying complex processes that drive innovation. The conversation also touches on urban dynamics and the role of intangible assets in national security.

Vladislav Zubok, a historian and author from the London School of Economics, dives deep into the complexities of the Cold War and its implications for today's geopolitical landscape. He explains how the ideological battle between capitalism and communism shaped global dynamics. Zubok also highlights the importance of diplomacy in U.S.-China relations and reflects on unique narratives, like the fascinating role of steel in history. With a touch of humor, he shares insights on Soviet chess culture, revealing its political significance.

Dive into the world of business as expert hosts break down the relevance of economic news in our daily lives. Learn about investment strategies and emerging technology trends that shape the market. The lively discussions aim to simplify complex concepts, making them accessible and engaging. Highlighting everything from the dynamics of the Federal Reserve to quirky topics like wolf cloning, this show offers a unique lens on what truly influences our financial landscape.

Glenn Hickman, president of Hickman's Egg Ranch, shares the alarming impact of a bird flu outbreak that decimated 90% of his chicken stock. He delves into the implications for egg prices and the industry's struggles with biosecurity and vaccine regulations. Hickman also discusses the daunting process of rebuilding his flock and the financial hurdles that come with it. Additionally, he highlights the concerning concentration of power in agriculture, revealing the challenges faced by small farmers in today's market.

Gene Seroka, the Executive Director of the Port of Los Angeles, shares crucial insights on the current state of global trade and its impact on America's economy. He discusses the confusion surrounding trade tariffs, including delays granted to some countries. Seroka also highlights the struggles that small and mid-sized businesses face with inventory management due to high tariffs, especially in the automotive sector. Additionally, he reveals the challenges of navigating port logistics amid fluctuating cargo volumes and the broader implications for consumers.

Steven Fulop, the Mayor of Jersey City and a candidate for governor, discusses innovative strategies for increasing housing supply in a city grappling with affordability and gentrification. He explores the delicate balance between luxury and affordable housing, sharing successful initiatives to attract developers. Fulop emphasizes the need for state-level reforms to improve infrastructure and tackle rising rent costs. He also addresses the complexities of local governance in New Jersey and the importance of collaborative solutions to enhance livability.