The Fed Opening the Flood Gates

Published on
April 14th, 2020
Duration
30 minutes


The Fed Opening the Flood Gates

The Interview ·
Featuring Dr. Thomas Hoenig and Pedro da Costa

Published on: April 14th, 2020 • Duration: 30 minutes

Dr. Thomas Hoenig, distinguished senior fellow at George Mason University's Mercatus Center, joins Pedro da Costa, columnist at MarketWatch and Forbes, to discuss Dr. Hoenig's experience as former chief executive of the Kansas City Fed and former vice chairman of the Federal Deposit Insurance Corporation (FDIC). Drawing upon his experience as a voting member of the Federal Open Market Committee, the Fed's principal organ for making large asset purchases, Dr. Hoenig discusses the current extreme measures that the Fed is taking in order to support asset prices during this unparalleled exogenous shock that the quarantine has inflicted on markets. They explore how large the Fed’s balance sheet could get and what a sustained zero-interest policy will mean for investors, workers, and employers. Filmed on April 8, 2020.

Comments

Transcript

  • cs
    connor s.
    7 May 2020 @ 16:33
    Appreciate the lens
  • SB
    Stewart B.
    23 April 2020 @ 16:54
    He's been reading Hayek! That is awesome for a central banker.
  • MC
    Michael C.
    14 April 2020 @ 08:36
    Great to have Dr Hoenig on, thanks Pedro. Hard for him to be truly candid since he is still a Fed insider. Pretty clear though that between the lines he admits the Fed can't fix a solvency crisis and in that event the Fed balance sheet wont really matter. $10tr balance sheet very realisitc and grateful he admitted that.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:13
      Many thanks for watching.
  • RN
    Richard N.
    14 April 2020 @ 13:02
    Thank you for this great interview. I would love to hear from an interviewee that is coming from the opposite viewpoint. I'd like to see yall debate/interview someone with the view that MMT will pull us out of the economic rut and that markets are going back up. Obviously, I know that the mainstream media does this already but if yall see someone that yall believe is a respectable influencer in finance with an opposing view I think there would be value in that conversation.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:12
      How's Stephanie Kelton? Working on it!
  • PU
    Peter U.
    14 April 2020 @ 13:27
    Pedro, where are the hard questions that should have been asked of Hoenig/FED?
    • CB
      C B.
      14 April 2020 @ 13:39
      I agree. It must be hard to attract a senior Fed official for an interview like this if they expect to be grilled, but I really wish Pedro had pushed him to explain how the Fed will exit this balance sheet bonanza without causing further damage and/or planting the seeds of the next crisis.
    • JD
      James D.
      14 April 2020 @ 15:30
      Two old friends reminiscing about the good old days of 2008-9
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:12
      Send them over and I'll ask the next guest. Plus, I like to save the hardest ones for people who are in an actual position to do something. Debates with ex-officials tend to be more theoretical by definition.
  • JJ
    James J.
    14 April 2020 @ 19:16
    Please no more Fed people that paper over global central banks role in boom bust cycles and all the alleged anguish they feel in implementing bailout programs to socialize risk and destroy true price discovery.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:10
      They're literally the most powerful, market driving central bank in the world and you don't want to hear from them? Explain that investment strategy please.
  • DS
    David S.
    14 April 2020 @ 20:49
    Dr. Hoenig, Thank you for your candid discussion. If I helps, I think you have a little President Truman in you. He would have liked the direct way you answered many questions - recovery length, difference with a pandemic recession, etc. I particularly like your comment on QE. From a lay person's point of view, I feel that QE1 was necessary. After that the QEs just inflated the stock market and hard assets making the divide between the rich and poor even greater. Human nature is interesting in that everyone who made a lot of money thinks that it was all their brilliance without luck. Thanks for your time and thoughts. Best of luck. DLS
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:10
      Cheers David I'll pass it along.
  • RM
    Russell M.
    14 April 2020 @ 21:53
    I thought his was a very interesting interview because it provided an insiders view of how the Fed behaves in a crisis and what we can expect in the future - political pressure driven QE infinity. He also has the same fear we do about the effect of this on our ability to climb out of a deep recession this $20 trillion of government debt. The Fed will be forced to continue to suppress interest rates or Treasury debt servicing costs will swallow up the Federal budget. In other words the Fed will be forced to inflate away government and private debt. Design your investment strategy accordingly!
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:09
      Glad you liked it.
  • DL
    Dominic L.
    14 April 2020 @ 23:52
    The interviewer did a good job.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:09
      Thanks. Tough crowd!
  • BC
    Burton C.
    15 April 2020 @ 02:16
    What a hack puff piece! Never one challenge to any of his blow dried answers. I can get this stuff watching Steve Liesman on CNBC. His answer was pretty rich when asked could the country have been better prepared going into this crisis. According to Hoenig this entire crisis is all about the virus. If it had not been for the virus everything would have been fine. Yeah, maybe Pedro could have asked a few questions about the FED's panic response to the repo emergency starting last September. As in why they needed to falsify market interest rates in the first place. And I thought the FED promised it would be temporary . If everything was so great why were they pouring in hundreds of billions overnight by February. Pedro you are no journalist, you are just a cog in the disinformation campaign. And RealVision I am disappointed in allowing this disinformation campaign to be propagated on your network. At least Raoul is speaking the truth.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:09
      A little harsh but I can take it. So here's the thing: Hoenig is a retired policymaker. He's not in charge anymore. When I have a sitting official in the chair, the tone will be much different. Working on that.
  • BC
    Burton C.
    15 April 2020 @ 02:35
    Also Pedro, it never occurred to you when he said the FEDs balance sheet would likely go to $10T that the obvious follow-up question would have been what the FEDs plan was to bring it back to pre-GFC levels ($400m)? The answer at least would been good for a guffaw!
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:07
      My apologies for the omission. It may be due to the fact that I'd already asked him during a previous conversation a month earlier--and he told me it would probably be another 10 years at least! So i knew the answer but I unduly deprived RV viewers of it.
  • mj
    mandeep j.
    15 April 2020 @ 07:23
    The Fed has not been able to withdraw its accommodation for the last 12 years. I wonder why Pedro didn't challenge him more on Dr. Hoenig's assertion that the Fed needs to find a way out of this "extra ordinary" easing soon otherwise it could become "entrenched" Is it not already?
    • DS
      David S.
      15 April 2020 @ 07:47
      Why do you think that the Fed has been unable to withdraw its accommodation? DLS
    • WM
      Will M.
      15 April 2020 @ 19:18
      Because of course, doing so would have crashed the system. The tightening attempted last year quickly showed there is not enough liquidity left to keep the system running. Buy gold (in some form at least) and save (at least partially) yourselves.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:05
      I thought he was very clear he doesn't expect the Fed to get out any time soon.
  • DS
    David S.
    15 April 2020 @ 20:18
    I am surprised at the constant Pavlovian response by RV commenters with the word Fed. The following quote shows that Dr. Hoenig was opposed to QE1, QE2 ad nauseum. “Dr. HOENIG: Well, let me begin by saying in the last crisis, I was supportive of the immediate relief programs in 2008. I became very strongly in disagreement with the majority of the FOMC when they initiated QE1 and 2 and so forth in a recovering economy. They were putting massive amounts of reserves into the system in a recovery, keeping interest rates low and I was concerned then that it was going to create the next excess with increased leverage, misallocation of resources that would follow from that and that was very controversial at the time inside the Fed. I still feel very comfortable with my position.” Yet he is validified merely by association with the Fed. These knee-jerk reactions make it more difficult to get quality guests to speak to us. RVTV’s subscribers want to hear from the best. Let’s help by being more respectful of our guests and actually listen to what they say. DLS
    • DS
      David S.
      16 April 2020 @ 02:37
      Sorry, I am getting too old to proof. It should have been vilified. DLS
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:04
      What he said.
  • CS
    Corrian S.
    16 April 2020 @ 09:48
    This is the worst interview I've ever seen on Realvision. No issues with Dr. Hoenig, but Pedro da Costa was beyond incompetent. How about the interviewer ask some actually relevant questions, like: 1) What does Dr. Hoenig think about how far the Fed balance sheet can potentially run before systemic issues (hyper inflation, monetary debasement, etc.) become a major issue, and not just stop at "oh I think the Fed Reserve will run up to 10 trillion due to this crisis". An insight into whether he thinks 10 trillion is the limit, or 20 trillion is the limit, or 500 trillion is the limit, could actually be insightful to infer how far the Fed may actually be prepared to go. 2) Do the Fed ever think about or discuss internally, the ramifications of their monetary policy on exacerbating income and wealth inequality, given that pumping liquidity disproportionately favors asset-owners. 3) How do the debates actually work on the inside of the FOMC when weighing the pros of bailing out the economic system in the short term, vs the moral hazard with bailing out financially irresponsible banks / hedge funds / corporations 4) Does Dr. Hoenig and those at the Fed see a pathway on how the Fed Reserve can EVER reduce their balance sheet and increase interest rates back to a normalized level given current (and ever increasing) debt levels in the economy. Would like to see Dr. Hoenig back on the show with a different interviewer next time.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:03
      Thanks for your feedback. Those are all good questions but there were other issues I also wanted to address. We'll have him back and request viewer input!
  • RM
    Russell M.
    16 April 2020 @ 13:53
    I thought it was very revealing when he said: "even after the pandemic, you have to get through the recovery. That will put enormous pressure on the Federal Reserve to make sure that interest rates remain low, both for the government to borrow and for the economy itself to recover. It's going to be under a lot of pressure to increase its printing the money, its creation of reserves, and I could see it being $10 trillion, fairly easily see that coming our way." He was acknowledging what common sense tells us, i.e., that the Fed knows it cannot allow interest rates to rise because of the adverse effects on the debt service burden on the Federal government. The effect on the rest of the economy is a secondary consideration. They can't do what is best for the rest of the economy, allow market interest rates, because it will cause debt servicing costs to the government to swallow the entire budget and then some or the government will continually have to issue more bonds to cover current servicing costs which the Fed will have to buy, just like today's interventions in the Repo, commercial paper and other credit markets, because no one else will. They're not stupid, they know this is bad for long term economic health and stability but they have not choice because of short term political pressures. The are afraid of social chaos. It's a legitimate fear. They are between a rock and a hard place.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:02
      That was awesome. Hoenig has seen both sides in a way--Fed and FDIC.
  • TD
    T D.
    19 April 2020 @ 05:06
    Good interview. Different style than what you're used to seeing. Nice work!
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:01
      Thanks!
  • MR
    Michael R.
    19 April 2020 @ 12:22
    He said "banks are unable to provide liquidity". Its always what the Cbankers don't say. BANKS ARE UNWILLING TO PROVIDE LIQUIDITY! Can you say "Repo Market"!
  • DG
    Danko G.
    16 April 2020 @ 13:39
    Sorry, but it is being too "politically correct", or should I put it the guest was with no info. We have it too much on tv, this was like press conference from FED officials than insider's peek. I have to say that Pedro was perfect (it was the only way to interview guest), and as someone mentioned, he, with his warm smile and elegantly packed question, make this conversation meaningful. Only information we get from his questions, not from former executive and I would rather to hear Pedro's views than Mr. Hoenig's.
    • DS
      David S.
      17 April 2020 @ 06:27
      What did you think when he said he was opposed to QE1, QE2 etc? DLS
  • CB
    Carl B.
    15 April 2020 @ 18:44
    Wrong audio uploaded. Can we have this fixed?
    • IH
      Iain H.
      15 April 2020 @ 19:53
      Posted about it at 10:50 this morning and still not fixed.
    • GH
      Gabrielle H. | Real Vision
      15 April 2020 @ 23:17
      The correct audio file has now been uploaded--our apologies!
  • JG
    James G.
    15 April 2020 @ 21:41
    Bailing out subprime and companies that wasted capital buying back stocks to line their pockets is a real travesty and heads should roll in the Fed and in Congress.
  • DG
    Dave G.
    14 April 2020 @ 13:21
    End the Fed!! they ARE the cause of the massive market dislocations and ultimately will make thing much worse. They are only there to protect the rich and this phony economy.
    • DS
      David S.
      15 April 2020 @ 20:37
      Do you really want Congress and the Administration directly in charge of printing money?? You may be getting your wish as the Treasury takes over the job of money printing. DLS
  • DS
    David S.
    14 April 2020 @ 19:25
    Disappointed. Smart, but very dumb folks are the reason why we are in the situation we are in. All they know is how to press the "print" button.
    • DR
      David R.
      14 April 2020 @ 20:19
      David, they also know how to print the "buy" button. And they're extremely proficient at taking no responsibility for any negative consequences of their terrible policies, such as these having caused the worst wealth inequality in centuries and the massive social unrest it will eventually trigger.
    • DS
      David S.
      15 April 2020 @ 20:32
      David R. - Not sure about your country, but in Americas we caused the problem by voting in representatives that helped the greedy. Then the greedy helped the representatives. The common good was not addressed. DLS
  • MT
    Mike T.
    15 April 2020 @ 15:45
    How many folks work at the Fed?12000 to 15000???? Just what do they do all day? Powell and his predecessors should be hauled up in front of the International Court in The Hague. Rant over, I feel better now
    • WM
      Will M.
      15 April 2020 @ 19:20
      I find a nice Balvenie 16 year old malt whisky really helps me relax....
  • WM
    Will M.
    15 April 2020 @ 02:29
    A number of points: Hoenig seems to talk about the present crisis as if it was only precipitated by the Coronavirus. The fact is that the Repo market signaled a financial crisis back in September and the “temporary” repo support became effectively permanent by year end. This alone shows that financial crisis was brewing before the civid impact. I would remind viewers that Bernanke had previously said that QE was a temporary measure and yet we went on to have multiple bouts of it over several years. I was also remind viewers that Yellen is on record saying that it was unlikely we would see another financial crisis yet the black swan of this virus and the ensuing lockdown has brought upon us a crisis which is going to be worse than the GFC by possibly an order of magnitude. The FED is now simply an arm of the treasury, is no longer independent and is now engaging in outright monetization of the debt. The FED got us here through its mismanagement of interest rates and establishment of moral hazard back in Greenspan’s time. His actions directly led to the Mortgage crisis as the GFC. The Fed is only here to support private equity and big business and big backs. The middle class in the US are about to be wiped out saving the Tesla’s and other companies who can only survive with cheap debt. I do not dispute that the FED are the only thing between us and the next depression, but any assumption that the “people” support the FED will soon evaporate once financial chaos reigns, as it will. Even if the economy gets restarted in May, things are not going to be the same ever again. This is going to get much worse and the divisions in the US and especially in Europe will tear us apart. I found Mr Koenig to have a slightly “smarmy” attitude and just couldn’t watch all of this video.
    • BC
      Burton C.
      15 April 2020 @ 02:38
      Will, see below entry
    • BC
      Burton C.
      15 April 2020 @ 02:43
      Will.. you correctly state above "The FED got us here through its mismanagement of interest rates and establishment of moral hazard back in Greenspan’s time. His actions directly led to the Mortgage crisis as the GFC" but then go on to say: "I do not dispute that the FED are the only thing between us and the next depression" Which one is it? No the actions of the FED going forward will exacerbate the debt deflation that is now baked into the cake. By continuing to falsify interest rates and ultimately destroy the currency it will put us into an extended depression.
    • WM
      Will M.
      15 April 2020 @ 19:15
      Burton, without the FED gushing money into the system at this time the plumbing (as Raoul and Julian call it) would have completely blocked up leading to massive default and financial collapse almost overnight. I agree with your comments but having JUST retired on April 1, I need to get my pensions in order to save them (I get 50% of the total freed up in 2 months or less). My personal funds are 33% gold/miners, 33% cash, 33% other stuff. I have to consider my own practicalities and at least the FEDs actions give YOU time to get your assets in order. Problem is, Europe may drag us all down within a couple of months anyway. I wish you the best of luck Burton, this is going to get worse as you already know.
  • RM
    Russell M.
    15 April 2020 @ 16:25
    I thought this was very useful because it was like hearing from the horse's mouth (a Fed high level insider) that despite the suboptimal QE effect on stability and growth, the Fed is trapped spewing ever more $Trillions of QE debt and helicopter money into the system to prop up every aspect of an economy make more fragile by prior bouts of QE. The debt will likely (based on past experience) never be able to withdraw because politics will not allow it to absorb the pain necessary to achieve this. If we don't go back to work, printing money loans and helicopter money won't save the economy. The economy needs to generate goods and services. Absent a restarting economy, trillion dollar QE will just make what is left to buy more expensive. The QE crushing debt will burden the recovery that takes place when the Covid threat goes away. This debt burden will have to be inflated away. Buy some gold insurance.
  • RP
    Rodolfo P.
    15 April 2020 @ 15:30
    Echoing Iain's comment: The wrong audio file was uploaded for this show. It is a daily briefing. Can someone please upload the correct audio? Thanks.
  • IH
    Iain H.
    15 April 2020 @ 14:50
    The wrong audio file was uploaded for this show. It is a daily briefing. Can someone please upload the correct audio? Thanks.
  • TL
    Tracey L.
    15 April 2020 @ 14:41
    I loved Pedro's style with its mix of silk boxing gloves, warm smile and hidden dagger. His approach was so disarming as he unleashed his zinger questions. Dr. Hoenig couldn't help but smile as he "politically correctly" signaled his belief that the world is totally screwed. If you read behind the smiles and niceties, it's clear that Dr. H knows the pandemic will continue, the recovery will be slow as molasses (or non-existent) and that there is no way the fed can exit the scene.
  • RS
    R S.
    15 April 2020 @ 12:04
    Over three decades working at the Fed, thank you for bringing us these interview guests wow!
  • IH
    Iain H.
    15 April 2020 @ 07:03
    II find it difficult to tell, are these people from the FED stupid, out of touch with reality or just your run of the mill bureaucrat who just use political spin to cover their tracks?
    • DS
      David S.
      15 April 2020 @ 07:28
      Mark Twain - Thank you for your advice again. DLS
  • NK
    Nick K.
    15 April 2020 @ 06:40
    Hi RV team. The Audio option for this interview is downloading the Monday, April 13th Daily Briefing...
  • TS
    Thomas S.
    15 April 2020 @ 02:53
    Softballs
    • TS
      Thomas S.
      15 April 2020 @ 02:55
      It the complexity and ridiculous leverage and debt that make the financial fragile
  • PP
    Patrick P.
    15 April 2020 @ 02:44
    Sorry ... but I see a wolf in sheeps clothing.
  • PD
    Peter D.
    15 April 2020 @ 01:01
    Ed Harrison should be doing interviews of government of monetary policy officials. The commentary would be the same. But it would have been fun to see the terror in Hoenig's face as he worried whether Ed would call out the inherent BS in dynamic stochastic models, econometrics and everything else he and central banks stand for.
  • KO
    Kelly O.
    14 April 2020 @ 23:39
    The “Audio” file for “The Fed Opens the Flood Gates” is the wrong audio file....it links to Monday’s Daily Briefing.
  • PC
    Peter C.
    14 April 2020 @ 22:28
    The Android app is so hard to use the film date is not a problem comparing to the UI design.
  • MB
    Matthew B.
    14 April 2020 @ 22:20
    This is fascinating solely for the insight it provides into the absolute vapidity of central bankers.
  • WS
    Winslow S.
    14 April 2020 @ 22:06
    a
  • DS
    David S.
    14 April 2020 @ 20:18
    David S. - The problem is not the Fed. The problems is any congress and any administration spending money. Who elected those representatives anyway? We did. .The Feds only major action is to add to or withdraw liquidity. Dr. Hoenig did a excellent job of discussing the possible length and depth of this crisis and the possible future Fed balance sheet totals. He did not gloss anything over. What we need to do somehow is insert fear of survival into our big corporations. Japan is not in great shape, but many of their corporation paid down their debt over ten years. US corporations borrowed money, issued options to the executive suites to drive up the price of their stocks. Those executives on average are probably gone now. In addition, all the passive investment has inflated the market, which I think is still inflated. Blaming the Fed is not productive. It is like blaming the weatherman for not controlling the rain. DLS
  • DR
    David R.
    14 April 2020 @ 14:26
    ED: "If you could point me to any company that releases "filmed on" dates other than RV in their original publication, I'd be interested to see it." Actually, in the first sentence of every interview, Macrovoices with Erik Townsend & Patrick Ceresna, they clearly state the precise date the episode was recorded. The turnaround times for RV and Macrovoices are similar and both are excellent. On occasion, MV airs episodes recorded weeks or even months earlier, such as during Xmas holidays or for a topic that's not time-sensitive (eg., a deep-dive discussion on the design of the Euroldollar market). I agree with many above that the recording date sometimes adds useful info or context. Accordingly, that tends to now be the SOP for lengthy, quality interviews in much of Eurasia today (for eg., Macrovoices' Erik Townsend is a permanent resident of HK now, having moved from the US, and he now follows this Eurasian norm for its 5.3-billion people and his global audience). I agree with others above; to heck with those few who we've seen abuse the recording date info to criticize RV; the majority aren't so petty or childish as most of us can differentiate time-sensitive from time-insensitive information. PS. You're an exceptionally talented financial journalist and interviewer. I mean broadly, not just in this episode. Big fan.
    • EH
      Edward H. | Real Vision
      14 April 2020 @ 15:02
      David, I've been on Macro Voices and it's pre-recorded! The date they quote is the release date, the publish date, not the film time. Irrespective, I really do appreciate all the feedback on this. It's very helpful in deciding where this should go. To be honest, my takeaway is that time to publish has to be shorter. My take is that the sooner the material is released after it is recorded the better. If it is same-day, then the film date doesn't matter.
    • JW
      Jon W.
      14 April 2020 @ 16:54
      Ed: regarding Macro Voices, the recorded-on date is in the audio. The very first thing Erik says is, for example[1], "Macro Voices episode 214 was recorded on April 9th 2020. I'm Erik Townsend." 1. https://www.macrovoices.com/podcasts-collection/macrovoices-all-stars-podcasts/831-all-stars-101-julian-brigden-usd-and-spx-outlook-in-the-wake-of-covid-19
    • JW
      Jon W.
      14 April 2020 @ 17:03
      > If it is same-day, then the film date doesn't matter. Same day would obviously be great. But below you said "95% of material will publish within three business days of filming." If a subset of videos are not published same day/within 3 business days then it leaves us potentially guessing about the context for all of them.
    • SS
      Steve S.
      14 April 2020 @ 17:33
      Ed. I am a big fan of yours but you are wrong on this. "If you could point me to any company that releases "filmed on" dates other than RV in their original publication, I'd be interested to see it." RV is a disruptor and nothing like the mainstream and should aspire to be different through its transparency. I am so disappointed with you guys. Its such an easy thing to make your customers happy, just a date. Just do it and stop being so damn stubborn. This is wrong.
    • LS
      Lemony S.
      14 April 2020 @ 18:08
      I don't understand what the possible argument is against the published date placed, for 5 seconds at the beginning of the video, then it vanishes. I guess we could ask another way, which would be, "What ADVANTAGE DOES IT BRING REALVISION to not put the film date?" An answer to that would provide the honest assessment, since it is so easy to do (and was done before) yet there is HUGE resistance for something seemingly "costing" nothing.
    • DR
      David R.
      14 April 2020 @ 20:15
      Ed, thank you for your reply. Yes, all the Macrovoices broadcasts are pre-recorded, but every recording starts with the host verbally identifying at the start of the audio the date that the episode was recorded. That info isn't on their webpage like it used to be in RV. I used to also like seeing the location where the RV video was recorded, especially when it was recorded outside the US - but that's a nit.
  • VB
    Vincent B.
    14 April 2020 @ 19:52
    Nothing to be learned from this interview frankly. FED economists speak like politicians: general statements, no insights. We need an open discussion on FED actions and have the courage to ask the tough questions about policy effectiveness (and proof of that!). No more fluff! Maybe focusing on few specific issues would've gotten a better result or have a non-fed expert alongside, but I doubt any (ex) FED official dares to go there...
  • DS
    David S.
    14 April 2020 @ 19:42
    The Fed needs to provide risk while saving by saving some of the strategic national interest fallen angels. Supporting everyone is eliminating the risk of being foolish with your balance sheet . DLS dls
  • rg
    robert g.
    14 April 2020 @ 19:19
    this was disappointing and glossed over what could have been insightful into the misteps of how the fed has orchestrated an economy that can only survive with their constant intervention. I'm sorry if you wasted your time and money.
  • sk
    saner k.
    14 April 2020 @ 18:58
    better spend your 30 minutes on something else..
  • VP
    Vincent P.
    14 April 2020 @ 18:40
    FED people should tell the truth that they'll keep up the "money from air wizardry" until the S&P500 (not the economy) makes news highs again and again and again and.... well you know.
  • BT
    Brian T.
    14 April 2020 @ 16:51
    Yet another FED guy that believes his own bullsh*t. History will not treat people like this kindly. They will wonder “what we’re they thinking?”
  • TP
    Timothy P.
    14 April 2020 @ 16:32
    This brings to mind Nassim Taleb's often-quoted statement "Intellectual, but idiot." Mr Hoenig seems confused as to why certain things have happened, noteably when he said "leverage wasn't the cause of the crisis" -- yet he fails to connect the dots that ZIRP incentivized banks and others to chase yield at any cost, with leverage being their only recourse. I also can't shake the chesire cat grin he gave when discussing the ramping Fed balance sheet, as if it was the most normal thing in the world. Perhaps he's very happy and isolated in his ivory tower, but this balance sheet expansion will have real effects upon millions of lives. I would have preferred the interviewer knuckle-down with a former FOMC member and get some answers as to why the Fed is necessary to begin with. With this track record, I'd say the Fed's credibility is near zero -- just like their interest rates.
  • MS
    Mark S.
    14 April 2020 @ 16:25
    Totally softball interview.....why bother.
  • EH
    Edward H. | Real Vision
    14 April 2020 @ 08:05
    Ed Harrison here. We have noticed a torrent of comments regarding the film date. Our apologies for not communicating this earlier. But, we removed the film date because we now release interviews in three business days or less, with only a few notable exceptions. At Real Vision, we have always prided ourselves on the timelessness of our interview product. With these interviews, ideas are the focus, not specific time-constrained trade ideas. Therefore, in the past, Real Vision often released interview content well after the film date. And, as a courtesy to our guests (and members), we included the film date in order to provide a degree of context for the guests’ more timely ideas. In today’s coronavirus world, we felt we could no longer adhere to that model. Things move much faster. So, we now have a mandate that 95% of material will publish within three business days of filming. We will continue to iterate processes to make our content as timely and informative as possible. Thank you all for being Real Vision members. Ed
    • JM
      James M.
      14 April 2020 @ 10:09
      Ed it is great that RV are targeting a 3 day publishing deadline but I struggle to understand why you can't just add the filmed on date too. I'm not sure what RV gain by not publishing this information, the markets (and the world) are moving incredibly quickly just now and significant changes can occur rendering what seemed a good 'idea' obsolete within 3 days. An example is the James Aitken interview, he mentions there is no way the Fed purchase JNK bonds, within 24 hours the Fed did just that.
    • SM
      Stephane M.
      14 April 2020 @ 10:16
      Ed I love your work on RV but.......I don't see any link between the coronavirus and the film date. Why hiding information??? We pay for the service, no?!?!? Go on CNBC or BNN and you get the date and the hour and the minute included in the video. Keep up your great work Ed!
    • JS
      Joseph S.
      14 April 2020 @ 11:07
      Again, you did not answer the question. You know the date the interview was conducted. Why are you unwilling and/or unable to post the date?
    • EH
      Edward H. | Real Vision
      14 April 2020 @ 11:28
      Stephan, CNBC and BNN don't publish film dates. They issue publish dates. That's the media industry standard. If you could point me to any company that releases "filmed on" dates other than RV in their original publication, I'd be interested to see it.
    • SG
      Sebastian G.
      14 April 2020 @ 11:44
      I am just grateful for the content, Ed and others. Cheers.
    • SM
      Stephane M.
      14 April 2020 @ 11:47
      Dear Edward, when I go to BNN video: https://www.bnnbloomberg.ca/video I can see the DATE AND THE HOUR. Transparency. Come on RV don't play with words... Auto parts makers pivot to medical supply production amid pandemic Mon, Apr 13, 2020 3:30 PM EDT
    • EH
      Edward H. | Real Vision
      14 April 2020 @ 11:52
      James: thanks for the comment on Aitken. Two things there. First, when I saw his comments on junk bonds, it reminded me of what I had been saying and how the Fed's actions changed the narrative. But, just because the Fed is buying fallen angels and a percentage of ETFs doesn't mean there is a blanket support for high yield issuers they way there seems to be for IG credit. So, perhaps the 'trade' hasn't changed. But, also, remember, in an Interview like Aitken's, it isn't about 'trade' ideas but a process and framework for thinking. That's what I was getting at in my initial comments. Second, the junk bond comment simply highlights what I said about our need to make content available more quickly. We cannot have content published with a huge delay anymore. Three business days is not a long time. But, the Aitken interview highlights that, in this world certainly, three business days can sometimes be too long. I guarantee you RV is going to make content available even sooner than that over time. I want that, and clearly you do too.
    • EH
      Edward H. | Real Vision
      14 April 2020 @ 12:03
      Stephan, I used to appear on BNN. It was mostly live. But it could be pre-taped on occasion. And I remember that the videos were released hours after I came on. So, I believe that's the video publish time, not the exact air time. I could be wrong there. But, at a minimum, it's not "filmed on" date. What we have been doing is providing both a air/publish date time and an actual "filmed on" date.
    • EH
      Edward H. | Real Vision
      14 April 2020 @ 12:15
      Two more general comments: A big reason we have added the daily briefing is the for the same reason we've moved to a 3 business day turn around on interviews: timeliness. We are still in the process of working all the kinks out there (my glitchy connection for example). But I hope you all appreciate that show as a good juxtaposition to the interview series. In the past, RV focused heavily on markets. But, now it seems policy choices drive markets as much as anything else. And Pedro da Costa is well connected to policy makers. In the same vein of providing timely content, we think these interviews by Pedro will give you an inside look into what policy makers might be thinking as they try to deal with this crisis. Expect more going forward.
    • JW
      Jon W.
      14 April 2020 @ 13:06
      Ed, I very much appreciate the new faster pace of publishing. And I agree with you when you say "ideas are the focus, not specific time-constrained trade ideas". That said, I frequently find myself frustrated by not knowing the exact context in which a conversation is happening since I find there's usually at least one or two comments in a video where it would be helpful to know the date of recording. I understand that you guys were unhappy that some viewers were were misusing the recorded-on date and even using it to complain about things being out of date. But please don't treat us all like children based on the behavior of the few. I don't think I'm the only one for whom this is a regular source of frustration and for whom it has unfortunately left a bitter taste in the mouth that is tainting an otherwise excellent product. Thank you again to you and the rest of the team for your excellent work! -Jon
    • JS
      J S.
      14 April 2020 @ 13:56
      Content is great regardless of the date. Simply having the date gives a better understanding of the conversation. 3 or 5 days the content is always relevant. its just the context in fast paced circumstances. I honestly doubt viewership would diminish by having the date. thank you pls keep up the great work.
    • DR
      David R.
      14 April 2020 @ 14:28
      ED: "If you could point me to any company that releases "filmed on" dates other than RV in their original publication, I'd be interested to see it." Actually, in the first sentence of every interview, Macrovoices with Erik Townsend & Patrick Ceresna, they clearly state the precise date the episode was recorded. The turnaround times for RV and Macrovoices are similar and both are excellent. On occasion, MV airs episodes recorded weeks or even months earlier, such as during Xmas holidays or for a topic that's not time-sensitive (eg., a deep-dive discussion on the design of the Euroldollar market). I agree with many above that the recording date sometimes adds useful info or context. Accordingly, that tends to now be the SOP for lengthy, quality interviews in much of Eurasia today (for eg., Macrovoices' Erik Townsend is a permanent resident of HK now, having moved from the US, and he now follows this Eurasian norm for its 5.3-billion people and his global audience). I agree with others above; to heck with those few who we've seen abuse the recording date info to criticize RV; the majority aren't so petty or childish as most of us can differentiate time-sensitive from time-insensitive information. PS. You're an exceptionally talented financial journalist and interviewer. I mean broadly, not just in this episode. Big fan.
    • BS
      Benjamin S.
      14 April 2020 @ 14:31
      Another vote here for the recorded date. As other say, It's valuable because it provides us with context. We understand it's a challenging environment to produce content and I would still value RV the same even if they only posted every second day. Thats the world we are in right now.
    • DR
      David R.
      14 April 2020 @ 14:33
      ^I meant, exceptional work in Ed's last live interview, and all of them actually since day one...Wow good job!
    • MC
      Michael C.
      14 April 2020 @ 15:42
      Hi Ed, I understand your point about timely releases (which is great). However, the filmed on date will still be useful for people that view the content at a later date (for example a week or month later). In the end, it is still a useful piece of information regardless of how timely the releases are in my humble opinon.
  • GB
    Gold B.
    14 April 2020 @ 14:16
    Interesting
  • SS
    Steve S.
    14 April 2020 @ 13:02
    Guys. I have seen a thread on Twitter that must be shared with the world. It shows some of the companies which are included in HYG and hence is being propped up by the FED. Some names include Tesla, Netflix and Uber. This is criminal: https://twitter.com/agnostoxxx/status/1249365743105445888
  • JL
    Jake L.
    14 April 2020 @ 12:53
    His controversial view, not controversial at all. The FED's decision to continue with low interest rates and QE is controversial.
  • SS
    Steve S.
    14 April 2020 @ 12:21
    Whether or not interviews are conducted within 3 business days, I still want to know the date it was filmed. Why? Because what if a few months down the line I want to watch an old video and would like to know when it was filmed? RV stop this BS. The customer is always right. Give the audience what they want and stop being so damn stubborn. It's not about you, its about the audience. Thank you.
    • JD
      Jesse D.
      14 April 2020 @ 12:34
      See Ed's comment below for those who haven't. I've come around to thinking 'within 3 business days' is good enough. The point of these interviews is to absorb macro perspectives, not daily trade ideas. By the way, on what other network does the editor respond to our comments like this? I love RV!
  • PC
    Petros C.
    14 April 2020 @ 10:36
    I think audio points to a daily briefing, if I am not mistaken?
  • BD
    Ben D.
    14 April 2020 @ 09:37
    Good interview all around. I hope that Dr. Thomas Hoenig makes another appearance on Real Vision in the future to share his knowledge and experiences as President of Kansas Fed. It would be tough but I'm sure there would be a lot of interest in seeing an interview between Danielle Dimartino Booth and Dr. Hoenig focused on substance, policy creation and their effects.
  • PV
    Peter V.
    14 April 2020 @ 08:41
    Great to get a former FED member. He think the FED can stop printing. That went well in 2018.. What a clueless idi-t ..