It is called the high cost of good intentions, the history of. U. S. Entitlement programs. John thank you very much. I left omb in the mid in 1998hen returned to serve as the deptive omb then left again and returned stanford. What were the lessons that thelearned working at office of management and budget. What were the lessons that you learned working at the office of management and budget. Well it seemed it was toward spen. D more as you know Ronald Reagan more than any other president. How powerful they were. The Biggest Surprise in the if. Was fr yes. Yes. Tell that story. True with Social Security. But the Franklin Roosevelt of was not like the Franklin Roosevelt of 1933. Franklin roosevelt in 1633 managed to roosevelt of 1933. In his first year in office, he removed nearly 400,000 i disabledd war the rolls he re duesed by 50 percent and extra in ry change in the whole history of Entitlement Programs. Interesting about it was the way he went about it. Entered office, of course, we
Progressiverudeaus mission stalled in beijing, with Sticking Points on all sides. Betty david, good to be with you from hong kong there. Favor,stocks today in those that will benefit from tax reform. But dont pull out the party have yet. I want to pull out this chart, g btv 339. It is according to vanguard, the index fund company that manages almost 5 trillion has drivenot of what the markets, the low volatility, the record runs in stocks, the record stimulus, the low wages, no inflation, that is about to end in 2018. Tax reform or no tax reform. They see more volatility to come, which means they see lower returns. Do not expect of those nice, juicy returns of the last few years any longer. David absolutely. It is almost impossible to , the conducive assumptions and realities we had in 2017 continue well into 2018. It is almost like mothers womb. It is a perfect environment, but do you get it in this harsh world, it which is what 2018 seems to be like. Analogy, we have been drunk on ea
Later this week . Saudi arabia bombs the yo , a countrytal already in crisis. It is 8 00 a. M. Across the emirates. This is Bloomberg Markets middle east. I am Tracy Alloway in dubai. Stocks from tokyo to hong kong all trading down. Them as ci asiapacific index is in the green, but that masks underlying weakness in the tech stocks because of the u. S. People having time to digest the tax reform passed by the senate late friday and finding some unpleasant surprises, and that fed into u. S. Markets yesterday. At the s p 500. A roller coaster ride relatively speaking. It was up, then down, down by. 1 . Fang down 2. 1 , the biggest tech stocks. 10 year yields ticking up stillly, so that thesis intact. Bloomberg dollar index sliding. Lets look at the region. We did have some big middle east news. Ae markets have not had formerto react to the yemeni president s killing. There was a hope that qatar might see some developments when it comes to the blockade issue. Meanwhile, take a look at turk
Holding in europe. Yes they are the dax, chief amongst the leaders with quite a significant gain this morning. 10year note yield, been hanging around the 2. 4 level there we are, 2. 378. You can see wti up 32 cents. Lets get to our road map this morning. It does start with that market rally you just saw the futures are pointing to new records on growingconfidence that republicans in the senate and house are going to pass that historic tax cut plan this week. Plus, well have more on csx, investors are worried given the turnaround strategy may be in doubt after the sudden death of Hunter Harrison. Surging in the premarket after an upgrade from jp morgan. And weve got plenty of deals to talk about this morning. Geez, we sure do. Well get to those and talk p g. Lets get to stocks first. They are on track to open sharply higher, this on optimism on passage of the tax reform legislation. The house is slated to vote on the bill tomorrow followed by the senate with republicans hoping to get it
Isnt perfect a lot of things i wished for, lawmakers didnt bother to close all the fat cat loopholes, you know what . Im not surprised. Because these private equity guys are donates big bucks to lawmakers so washington wont go after them. Look how much money is at stake and how much both sides are getting from the fat cat donors effectively buying themselves a tax cut. That said there are a lot of good things. You know that Corporate Taxes lower. Means good things for the markets. New developments on a story weve been following closely on the intelligence report. Highly questionable uranium one deal. Attorney general Jeff Sessions is reviving a fbi investigation into Hillary Clintons ties to this deal and we have got the intel. First to connell mcshane, standing outside of a wells fargo bank, one Company Giving back to its employees because of tax reform. Connell, i love it reporter interesting, trish, because the corporate rate coming down from 35 to 21 that is really centerpiece, you