Charlie Rose

YNHow  04/17/2012 01:47 AM Report

many very interesting ideas and infos from people who know what theyy are talking about are always a good thing.

great interview. The image of the metronome was great,

SharkswithfrikingLazers  04/14/2012 04:08 AM Report

Charlie, you play tennis almost every day?

Good man.

SharkswithfrikingLazers  04/14/2012 04:07 AM Report

As the Chinese have said on the program, they need high growth or their people will starve. Pretty simple economics.

SharkswithfrikingLazers  04/14/2012 04:04 AM Report

In 2009, as unemployment hit its highest level in 17 years, Morgan Stanley paid its employees over 14 billion dollars.

Well of course silly. You have to keep the A players or something bad might happen.

SharkswithfrikingLazers  04/14/2012 04:02 AM Report

Laura Tyson is a professor at the University of California, Berkeley. She was the chair of the Council of Economic Advisers, and then director of the National Economic Council in the Clinton administration.

Shortly after leaving government, she joined the board of Morgan Stanley, which pays her 350,000 dollars a year.

What a fine government we have.

SharkswithfrikingLazers  04/14/2012 04:00 AM Report

Morgan Stanley was also selling mortgage securities that it was betting against, and it's now being sued by the government employees retirement fund of the Virgin Islands for fraud.

What a fine organization.

SharkswithfrikingLazers  04/14/2012 03:58 AM Report

ELIOT SPITZER: The defense that was proffered by many of the investment banks was not, you're wrong; it was, everybody's doing it, and everybody knows it's going on, and

therefore nobody should rely on these analysts anyway.

NARRATOR: In December 2002, 10 investment banks settled the case for a total of 1.4 billion dollars, and promised to change their ways:

BEAR STEARNS $80 MILLION

CREDIT SUISSE $200 MILLION

DEUTSCHE BANK $80 MILLION

J.P. MORGAN $80 MILLION

MERRILL LYNCH $200 MILLION

MORGAN STANLEY $125 MILLION

UBS $80 MILLION

GOLDMAN SACHS $110 MILLION

Morgan Stanley paid the $125M but I doubt in just over 9 years they have yet to really change their ways.

SharkswithfrikingLazers  04/14/2012 03:45 AM Report

Charlie asks the lessons learned from 2008? He says, 'Liquidity trumps it all'.

Yes, Warren Buffet did very well having the cash to buy General Electric stock with a dividend of 10%. http://www.usatoday.com/money/economy/2008-10-01-1678224584_x.htm

Eight days after giving Goldman Sachs a $5 billion lifeline back in late 2008, Warren Buffett cut a deal with GE CEO Jeff Immelt and lent the large industrial manufacturer $3 billion to stay afloat. Let us not forget $5B at Bank of America last year.

Of course, the lesson may be the curse if the business side of America is still sitting on $2 trillion in cash.

SharkswithfrikingLazers  04/14/2012 03:32 AM Report

He says, 'The Chinese are most active on African continent'.

This is very interesting.

So is it a new form of imperialism? You send slaves to them (prisoners) but still get the natural resources left over from the days of the imperial Brits, the Germans and others.

SharkswithfrikingLazers  04/14/2012 03:27 AM Report

He says, 'Banks are the backbone of the economy'.

Then we have a spineless economy. Banks pay virtually nothing (at the expense of savers) and then loan at 7% to 9% with almost no risk due to all the guarantees they require.

Might we get a metal rod implanted please?

vongleichent  04/11/2012 01:08 PM Report

Nice point on being physically and mentally in line. Great formulare to be successful.

topazgirl  04/10/2012 05:29 PM Report

What an intelligent and honest conversation with such an intelligent and honest man!...I do not understand much about markets, acquisitions, or "high finance", etc., but I DO know that Morgan Stanley cannot make money for long by ripping-off their clients, and that they can make even MORE money, for both themselves AND us, by keeping their clients their NUMBER ONE concern. What a refreshing and "unique" concept! Once again, Gelles' "Golden Rule" taken here by James Gorman and Morgan Stanley to a practical, as well as moral level... All the high-falutin, financial-speak justifications from other large corporations during and after the 4 year crisis we are crawling out of, is boiled down to a simple, logical truth: treat OUR money as you would your OWN, and we will ALL weather this for the better! If I'd have wanted to take such extreme risks with my hard-earned money, I'd have gone to the casino... and had more FUN, to boot....

Gelles  04/10/2012 03:37 PM Report

Well, here we are again, hunting for a magic bullet to end unemployment NOW -- and/or to begin a determined CHANGE AWAY from our current DEFICIT IN DEMAND, (not a deficit in tax collections and/or excessive government spending and/or borrowing -- that "experts" claim exists.

..... These "experts" are our problem -- they point to no solutions.)

Charlie Rose and James Gorman play tennis, play at grasping the meaning of employment and money in relation to political economy, and one even plays at boxing with a teaching professional to keep his wind and muscles up to par.

They do their job but do not succeed at my job. My job is to put common sense solutions to recovery from a deflationary-induced depression before more of us lose their jobs, incomes and will to create economic democracy -- by:

..... reorganizing debt, and by

..... government investment in science, technology, engineering, math, (STEM), and in health, energy, education, infrastructure, R&D, training, and inflation-proof liquidity assurance, etc., (HEEIRITLA).

So, you never heard of HEEIRITLA and reject it out of hand. You admit we have deficits in DEMAND, SUPPLY, INCOME, and smart and honest leadership. OK. You define our needs. Then find a leader type to agree with you.

There are Generals David Petraeus and James Jones. REMant wants the ghost of Ronald Reagan. I want the ghost of Abraham Lincoln.

Do you want floating exchange rates that maximize the casino capitalism we're now married to. Or do we need fixed rates that start with plans and measurable objectives -- not race tracks and casinos.

The next big thing appears to be MORE FAMILY PICTURES AND MORE PICTURES OF ME, FRIENDS AND PRETTY PLACES -- in color and in the great cloud of internet memory on line. Pictures ar easier to create than good ideas that might be useful.

So my "Wiki-policy and "Output-based debt-free liquidity and cash money" are rejected for being too soft in a hard-boiled time and place. Better to eat s--t than solve problems. Problem solvers drown each other out. S--t eaters merely get obese from all that "stuff" inside their brain and dripping from their tongues.

aengle  04/10/2012 03:18 PM Report

Great interview - came across as a real person and not at all like the many other self-centered CEOs interviewed. My only question is how does someone with a great idea for another "i" product get it off the ground (help needed)? Thanks Mr. Rose for all of your programming; the only TV I must get home to watch.

tabs  04/10/2012 12:21 PM Report

One wonders what the title of the internal memo at Morgan Stanley was concerning this visit to the Charlie Rose Show, "Assuaging the Muppet's?" Mr Gorman is certainly a bright and affable type of Schmo that one wouldn't mind hoisting a pint with. Yet what was the purpose of this visit with Mr Rose, social, a book, a movie, a business deal a bit of legislation? It was Goldman Sacs and the fact that Mr Macks reception on Mr Roses show didn't receive a stellar reception. So Mr Gorman and company decided that before they get labeled "an enemy of the people" they would get out ahead of the curve and put a pretty face upon what they do. They pulled a John Houseman with their line that, "We make our money the old fashioned way, we earn it." Thus Mr Gorman stuck to the mantra that Morgan sticks to their core competency of what they do well and that they are about servicing their clients needs basically by making them money. Mr Gorman was wrong with using the metaphor that financial services and banking is the "Backbone" of the economy. It rather is the HEART of the economy as it facilitates the flow of money throughout the economy. One did get a clarification and reaffirmation that if one is holding assets that they had better have a quality of being desirable and have enough of value to be saleable during periods of duress. That said one wouldn't mind hoisting a pint with Mr Gorman as he does listen and have at least a modicum of humility.

One point of clarification, the residential RE market was in a normal "boom and bust" cycle starting in 1998. The only reason why unemployment went to 4.5% in the middle of the last decade was because Residential RE construction and the ancillary markets were carrying the economy. That and the fact that with housing appreciation and low interest rates people were able to use their homes as piggy banks which further stimulated demand. What the financial services industry did was to continue the game of musical chairs out further and longer than it would have otherwise done by packaging and repackaging those RE loans. The point of this is not to point a finger of recrimination but to point to the future and the fact that returning to a 4.5% unemployment rate is not a viable goal as it took a Bubble economy to achieve that rate. The economic problem that the US has to address is how to achieve sustainable employment and prosperity without using the masking device of bubble economies that only give the illusion of prosperity.

REMant  04/10/2012 12:15 PM Report

The lesson of 2008 IMHO is that deposit and savings banking should be absolutely separate, and the upshot of that is that deposits should be 100% available. Until that is done, and it has to start with the Fed, we will certainly see continual booms and busts, unless we fall into the kind of stagnation Japan and Britain have experienced, and we, ourselves, in the '70s, euphemistically termed a liquidity trap by the Keynesians. IMHO, we need not only the Volcker rule, we need a Volcker in the Fed, and a Reagan in the White House wouldn't hurt either.

A viable business must take care of consumers first, creditors next, and itself and its shareholders, last. Owners have been far too little accepting of risk in enterprise. They should see themselves as captains of their vessels, not the first to hop into the lifeboats.

Europe's problems were our problems more than theirs, which has been the case for almost a century, but as he said, they were wise to take the same conservative course they did after WWII in the face of similar headwinds. Ditto China.

A lot of Wall St types seem to like sports, particularly extreme ones. It might be better for us, however, if they took up some more contemplative pursuits.