Obama Outlines Economic Vision: Money Moves (07/24)

Your next video will start in
  • Info

  • Comments


July 24 (Bloomberg) -- "Money Moves" brings insight to investors looking for alternatives Deirdre Bolton talks to the professionals in hedge funds, private equity, venture capital, angel investing and real estate. Find out where they see opportunities. (Source: Bloomberg)

Of opportunity for all of those americans who have not made it yet.

Who are working hard but are suffering poverty wages.

Who are struggling to get full- time work.

A lot of folks are still struggling.

To many people in poverty.

Here in america we have never guaranteed success.

That is not what we do.

More than some other countries, we expect people to be self- reliant.

Nobody is going to do something for you.

To do something for you.

We have tolerated inequality for the sake of a more dynamic economy.

It is all for the good.

But that idea has always been combined with a commitment to the equality of opportunity, of portability, the idea that no matter how poor you started, if you are willing to work hard and discipline yourself, you can make it too.

That is the american idea.

[applause] unfortunately, opportunities for upward mobility in america have become harder to find over the past 30 years, and that is a betrayal of the american idea.

That is why we have to do a lot more to give every american a chance.

The best defense against all of these forces is the strength of the community.

So, we need a new push to rebuild rundown neighborhoods.

We need new partnerships.

We need new partnerships with some of the hardest-hit towns in america to get them back on their feet.

Because no one who works full time in america should have to live in poverty i will keep making the case that we need to raise the minimum wage.

It is time for the minimum wage to go up, like when ronald reagan took office.

[applause] we are not a people who allow the chance of birth to decide life's biggest winners or losers.

After years in which we have seen how easy it is for any of us to fall on hard times, you know that there are good people who work hard and sometimes they get a bad break.

The plan leaves.

Somebody gets sick.

Somebody loses all.

We have seen it in our family, friends, and the neighbors.

We have seen it happen and that means that we cannot turn our backs when bad brakes hit any of our fellow citizens.

Good jobs, a better bargain for the middle-class, an economy that grows from the top out , not the bottom down.

That is where i will focus my energies.

[applause] that is where i will focus my energy and not just for the next few months, but for the remainder of my presidency.

These of the plans i will lay out across this country.

But i will not be able to do it alone.

I will be calling on all of us to take up this cause.

We will need our businesses, some of the best in the world to pressure congress to invest in our future.

I will be asking our businesses to set an example by providing decent wages and salaries to their own employees.

I will highlight the ones that do just that.

There are companies, like costco, which pay good wages and offer good benefits.

[applause] companies like the container store that pride themselves on training their employees.

And on employee satisfaction.

These companies prove that it is not just good for the employees, it is good for the businesses to treat workers well.

It is good for america.

I will be calling on the private sector to step up.

I will be saying to democrats that we have got to question some of our old assumptions.

We have to be willing to redesign or get rid of programs that do not work as well as they should.

[applause] we have got to be able to embrace changes to cherished priorities so that they work better in this new age.

Democrats cannot just stand pat and just defend whatever government is doing.

If we believe that government can give the middle-class a fair shot in this new century, and i do believe that, we have an obligation to prove it.

That means that we have got to be open to new ways of doing things.

With these republicans in congress, we need them to set aside short-term politics and work with me to find common ground.

[applause] it is interesting, in the run-up to this speech of lot of reporters were saying -- you know, mr.

President, these are all good ideas, but sullivan you have said before, some of them sound great, but you cannot get those through congress.

Republicans allow agree with you.

And i say -- look, the fact is that there are republicans in congress right now who privately agree with me on a lot of the ideas that will be proposing.

I know, because they have said so.

But they worry that they face political retaliation for cooperating with me.

There are others who will dismiss every idea i've of forward.

Either because they are playing to their most strident supporters or in some cases because sincerely that have a fundamentally different vision for america.

One that says that inequality is both inevitable and just.

One that says that an unfettered free market inevitably produces the best outcomes regardless of the pain imposed on ordinary families and that government is a problem and we should just shrink its as small as we can.

In either case, i say to these members of congress that i am laying out my ideas to give the middle class a better chance.

Now it is time to lay out your ideas.

You cannot just be against something, you have to be for something.

[applause] [cheering] even if you think i have done everything wrong, the trends that i just talked about or not happening -- were happening well before it took office.

It is not enough for you to simply oppose me, you have got to be for something.

What are your ideas?

If you are willing to work with me to strengthen american manufacturing and rebuild this country's infrastructure, let's go.

If you had better ideas to bring down the cost of college for working families, let's hear them.

If you think you have a better plan for making sure that every american has the security of quality, affordable health care, then stop taking meaningless repeal votes and share your concrete ideas with the country.

[applause] repealing obama care and cutting spending is not an economic plan.

It is not.

If you are serious about a balanced, long-term fiscal plan that replaces the mindless cuts currently in place, or if you are interested in tax reform that gives working families a better deal, i am ready to work, but you should know that i do not accept deals that meet the basic tests of strengthening the prospects of hard working families.

This is the agenda we have to be working on.

[applause] we have come a long way since i first took office.

You know, as a country -- [applause] as a country we are older and wiser.

I do not know if i am wiser, but i am certainly older.

You know, as long as congress does not manufacture another crisis, as long as we do not shut down the government to keep them from keeping it open, as long as we do not risk a u.s. default over paying bills that we have already racked up, something we have never done, we can probably muddle along without taking bold action.

If we stand pat and do not do any of the things i talked about, our economy will grow, although slower than it should.

New businesses will form.

The unemployment rate will probably take down a little bit.

Just by virtue of our size and our natural resources and, most of all, the talent of our people, america will remain a world power and the majority of us will figure out how to get by.

But, you know, that is our choice.

If we just stand by and do nothing in the face of immense change, understand that part of our character will be lost.

Our founding precepts about wide-open opportunities, each generation doing better than the last, that will be mf.

Not a reality.

The position of the middle class will erode further.

Inequality will continue to increase.

The power of money will distort our politics even more.

Social tensions will rise as various groups fight to hold onto what they have worked start blaming somebody else for why their position has not improved.

The fundamental optimism that has always propelled us forward will give way to cynicism or nostalgia.

And that is that the vision i have for this country.

It is not the vision that you have for this country.

It is not the america we know.

It is not a vision that we should be settling for.

Not a vision we should be passing on to our children.

I have now run my last campaign.

I do not intend to wait until the next campaign for the next president before tackling the issues that matter.

I care about one thing and one thing only, how to use every minute.

[applause] the only thing i care about is how to use every minute of the remaining 1276 days of my term to make this country work for working americans again.

[applause] [] that is alive -- [' cheering] that is all i care about.

I do not have another election.

I will tell you, that is where i believe america needs to go.

I believe that is where the american people want to go.

It may seem hard today, but if we are willing to take a few bold steps, if washington the just shake off its complacency and set aside the kind of slash and burn partisanship that we have just seen for way too long, making some common-sense decisions, our economy will be stronger one year from now, five years from now, 10 years from now.

[applause] if we focus on what matters, that more americans will know the pride of first paycheck.

More americans will love the fast action of flipping the signs of an on their own business.

More americans will have the joy of, you know, scratching the height of their kid on the door of the brand new home.

Is that not what makes a special them of it is not the ability to generate incredible wealth for the few.

It is our ability to give everyone a chance to pursue their own true measure of happiness.

We have not just wanted success for ourselves.

We want it for our neighbors as well.

[applause] that is why , when we think about our own communities we are not a mean people, not a selfish people.

Not a people that just looks out for number one.

Why should our politics reflect those kinds of values?

That is why we do not college on stream or susie's stream, brought onstream.

We call it the american dream.

No matter who you are, where you come from, who you love, you can make it if you try.

[applause] that is what we are fighting for.

So, yes, congress is tough right now, but that is not want to stop me.

We are going to do what we can where we can.

We are going to go on the road and talk to you and you will have ideas.

We want to see which ones we can implement.

We are going to focus on this thing that matters.

One of america's greatest writers, carl sandburg, riding right here in galesburg over a century ago.

[applause] he saw the railroads bring the world to the prairie.

And the prairies and itself to the world.

He saw the advent of new industries, new technologies.

He watched populations shift.

He saw fortunes made and lost.

He saw how a change to be painful and have a new age to unsettle long-held customs and ways of life.

He had that frontier optimism, so he saw something more on the horizon.

And he rode -- i speak of new cities and new people.

The past is a bucket of ashes.

Yesterday's a wind gone down.

The sun dropped in the west.

There is only an ocean of tomorrow's, a sky of tomorrows.

America, we have made it through the worst of yesterday's winds . we have to have the courage to look forward, said our eyes on the horizon, find an ocean of tomorrows.

We will find this guy of tomorrow for the american people, for this great country be love.

Thank you, god bless you, i've got less the united states of america.

[applause] [ cheering] ? button to "money moves." -- welcome to "money moves." i am deirdre bolton.

We can resign ourselves to diminishing living standards or do what america has always done, adapt, pulled together, fight back and win.

With more on the president's message from knox college, we bring in julianna goldman from the white house.

Of what stock -- struck you about the president still 's town?

The point of his speech was to turn the country's attention back to the economy, t up the debate for the coming budget fights we are expected to see this fall.

He went to knox college where in 2005 he went as a freshman senator.

He and white house officials believe that it was then that he made the clearest articulation of his economic views, that economic growth, the success of the economy really hinges on a strong and vibrant middle class.

He came here today to echo some of those themes and say -- yes, america has fought back from the 2008 financial crisis, but there is still a long way to go and we cannot risk harming that progress for these upcoming budget fights.

We are not there yet.

We have got more work to do.

Even though our businesses are creating new jobs and have broken record profits, nearly all the income gains of the past 10 years have flowed to the top 1%. it's that to me that the president made a point in talking about the success he has seen over the last several months of making it clear that we are also seeing the deficit coming down at the fastest rate in 60 years.

When you couple that deficit being reduced, gains in the economy, and the big fights ahead, when the current fiscal year ends and a possible fight over the debt ceiling, the president said look, we are moving in the right direction and it is not worth it to default on our debt or risk a government shutdown in harm the progress we have made and really imperil the middle class right now.

I thought it was significant for the end when he said -- short, if we do not do anything we can keep trudging along, but we will not see the strength of the middle-class.

The country is not going to be all that can be.

Trying to bring back some of the hopeful message that the president was so successful at conveying in his elections.

Julianna goldman, thank you, as always.

Joining us there from the white house with president obama's comments.

A big day as well for the sec.

Taking the stand on civil fraud allegations, the sec claims that tourre lost investors by misleading them on a bond deal.

Sue keenan, what is the latest?

The former goldman trader taking the stand could make or break the case of the sec.

He'll arrive early, ready to take the stand.

Let's listen.

[no audio] a cog in the wheel, a scapegoat for the sec.

A citigroup trader was acquitted of similar charges by the sec.

Right now their star witness, from goldman, testified that they did nothing to correct the impression that john paulson was a fellow long investor who was instead secretly betting the deal would fail.

The sec has lost two prior cases.

They have their biggest attorney and the case.

Legal observers say that should they lose it would raise the question of the sec possibility to prosecute fraud.

Sue keenan, thank you very much for bringing us the latest on fabrice tourre and those testimonies on civil fraud allegations.

All right, just ahead, video games are reshaping the way that hollywood creates movies.

We will introduce you to the brains behind many of the most successful games.

He is going to tell you how he is teaching film executives to start creating the movies that will hit it out of the park.

Also, the founder of jibjab will be telling us about his new family oriented venture.

? ? we have some breaking news to bring you on detroit.

A federal bankruptcy judge overruled the michigan state judge and said that the detroit filing is valid.

He may name another judge to oversee mediation between the city and creditors, who are owed about $18 billion.

The bankruptcy judge saying for the moment that bankruptcy is valid.

We are going to bring in dominic chu with the latest.

It is time for on the markets, let's kick it off with stocks today.

Another big earnings story we are following is forbes.

We will be back in just half an hour, keep it right here.

Fabrice tourre" returns -- "money moves" returns after this break.

? ? this is "money moves." the headline we are falling for you, prosecutors are planning to charge sac capital as part of a wide-ranging probe of insider trading according to a person familiar with the matter.

Of course run by its founder, steve cohen, there are no plans to charge him at this stage.

We want to keep you updated in bring you the latest from detroit, the bankruptcy filing that misfile is valid.

The bankruptcy protection will be determined in federal court, not state court.

The bankruptcy judge may need another to oversee mediation between the city and creditors who are owed about $18 billion.

For more on the top headlines we are getting you out to the newsroom with adam johnson.

Manufacturing in china, more than forecast.

The purchasing manager forecast shows that a key part of the economy contracted at the quickest pace since last summer, raising more doubts about china's ability to meet their annual economic growth targets.

China is not the only country feeling the slowdown.

Caterpillar, feeling the squeeze because of the lagging markets in china.

Mcdonald's, plowing ahead with full steam.

Betty liu sat down with the of mcdonald's. hear it -- ceo of mcdonald's. here is what he had to say about china.

We are not gauging success in china based on someone else.

It is how much goes to mcdonald's. he went on to say that they are developing a menu that is both innovative and exciting.

Coming up today at "street smart," trish reagan hosted a poker tournament of economic titans.

Some of the details may have leaked out, but we have the real preview of what was said by these hedge funders around the table.

Coming up in the next hour.

See you then.

Thank you very much.

In the meantime we are following developments on del.

They said they want more money if, and this is a big if, they go private.

The committee wants more time to think about it.

Christina broke this news on the timing.

Cristina, august 2 is the new date?

Yes, that is the new date.

We will be out here yet again to see if this deal can finally passed muster with shareholders.

Carl icahn has acted as a foil so far.

We heard from him and he calls the situation the desperate dell debacle.

Level language from him.

We heard the silver lake and michael dell are increasing their offer by 10 cents, but it has strings attached.

What they are asking for is basically the special committee, they want the special committee to drop a shirt -- shareholder and carl icahn sees that as crazy, changing the rules of the game because you are losing.

He does not see the purpose of it.

Let me give you a context, this special committee will probably not agree to the term of less michael dell wants to come to the table with a $14 per share bid.

It basically means that they have to come up with more money, which in the past they have signaled they are not willing to do?

That is right.

Earlier today they said 13.75 was the best and final offer.

According to our reporting we were hearing that they would not budge on 13.65. the fact that they have gone up in debates a willet -- indicates a willingness to go up.

We may see something completely different next week.

Tonight the meeting will start and likely come to a quick end, adjourning into next week.

But silver lake and michael dell is saying is that special committee has until 6:00 p.m. tonight to tell them whether they will accept this new share offer proposal for shareholders and, if they do not, it expires, meaning that if nothing happens tonight, the 13.75 new offer will expire and next week shareholders will have the opportunity to vote on the original deal.

Unless, of course, we get an entirely new deal, which is a real possibility.

Christina, thank you for joining us there in texas.

Staying with technology, if you are a big game are you already know about ken levine, the visionary creator behind the bio shocke franchise.

Warner bros.

Has hired him to write a screenplay for the remake of "slogans run." he is with us now from boston.

I know you started as a screenwriter out of college, then he went into developing video games.

Is this not a return to home for you?

I am very much a video game developer.

Logan's run it was particularly interesting to me.

I was immediately drawn to my first encounter with dystopian stories.

People that follow my games know that they are about dystopias.

To some degree i think i owe those games to reading those books in seeing that movie as a kid.

What does this say about media right now?

Movies used to be the source of inspiration.

As you talked about, "logan's run close but for u.s. a kid.

Now it seems that the talent is coming from gaming, so those are coming first in serving as inspiration for movies.

Do you think that is generally true?

If you look at talented and creative people, whether it is some like myself, or j.j. abrams, guilermo del toro, you have people who are interested in creating things.

At heart i am always the game's creator and that will always be my focus, but i love movies and television shows and if you have an opportunity to use your work on some things like "logan's run, closed what i could not pass it up.

I know it is early days, can you give us an idea of what of a look like?

It is way too early to talk about any of that.

Right now i am not even officially started on the writing process.

I have been talking to john bird, the producer, about it.

It is an idea i have been thinking about my take on it would be.

Before we let you go, getting back to the game the said is your focus, the bioshock franchise, the latest one selling 4 million copies.

Does that mean that gamers will not be seeing another bioshock game a while?

Can you do out?

-- do both?

Actually, we will be talking about new bioshock stuff reason.

You can start now, if you want.

I would love to break that story here, but some people would be very angry with me if i were to do that.

There is very exciting news for the fans coming up extremely soon about more exciting things in the bioshock world.

They will see it very soon.

Quick question, gaming in the living room or mobile?

If you had to pick, which one wins?

The thing is i do not think that gamers want to pick.

We really tune into the future, the same way when i watch a netflix movie , sometimes i want to watch it in my bedroom, sometimes on an airplane.

Games have to become more transportable.

I do not just mean running game on a mobile device, i mean starting a game in your living room, digging it up on the road, in your car -- well, not value are driving, but a hotel room or wherever you are, that is something that is important to me is a gamer.

Moving those distinctions, allowing people to play the game where and how they want to.

Thank you so much for the time.

Great to have you with us.

That was ken levine, by a shot creator, now a "of logan's run close of screenwriter.

When we come back, sesame street for the digital age.

A new interactive digital service for kids and parents, next.

? ? welcome back to "money moves ." sesame street for the connected ag is the story of my next guest.

Story bots, with interactive content for parents and kids.

You are probably already familiar with jobjab.

-- jibjab.

Greg, i have wasted many hours watching much political content, laughing at the stuff you have created.

Now you are on two-storyo story bots.

Think we have a video to show everyone.

L.s.i. you can up with the idea -- you can tell us how we came up with the idea.

Oh, there is made.

Anyway, i am sure the movie is there.

There you go.

I am right along.

An orange and blue creature.

How did you get the idea to launch this new brand?

We were in our 20's when we came up with jibjab.

Were inspired about what you could build on the web with comedy.

In our 20's and 30's we are still on the web, but i just turned 40, he is laid 30's, we have kids and we have been inspired by our kids use of technology.

What could sesame street be if it were an event today?

You started this in 1999, you survive that crashed with jibjab.

You have lived through a digital age crisis.

Do you feel you have figured out the secret sauce for those eras?

Keep changing.

Never stop changing.

Looking back on our history, there have been an equal number of business models.

Four years ago we started developing interactive readings and personal development.

We built a really nice subscriber base and now we are building a subscription based model around these safe learning acts for kids and parents as well.

What is the mobile component in all of this memo if you have kids or are around kids, they are incredibly adept with smart phones and computers.

Stuff that shows up on my iphone that i did not even know about.

They gather that stuff in the living room right now.

With these devices that are everywhere, of what kind of great entertainment can we create that helps kids learn but are also tools that help parents?

As far as the business goes, are you doing this through advertising?

What we are doing is what we wanted as parents.

It is a collection of apps.

Moylan subscription price of mott's them all.

It lets them create a contained in a safe place for kids to play.

Peace of mind that your kids are playing.

That is a big deal.

I had a friend that racked up $300 in virtual acorn charges for some squirrel.

There is a lot of abuse in that space.

Really nice to meet you, thank you for coming in.

Creator and co-founder of jobjab, -- jib jab, now creator of storybots.

In just a minute.

? ? time for our daily buzzword to improve your vocabulary.

Bob rice is here.

A federal judge sending headlines out of detroit bankruptcy.

That is valid and very much in play.

To the great distress of investors out there.

The term general obligation means that the municipality that issues these bonds is supposed to use its full power to make sure it has the interest and principal to pay back investors.

Of course, the big distinction is against jeep -- revenue bonds.

There are some other kinds of certificates of participation.

The big idea is that it is normally associated with specific hospitals and stadiums and you only get the revenues out of that project to pay back your bond.

Getting back to it, i know we have charts about how much these have suffered lately.

I know that when we talk about detroit, people say that people will only be paid 10 cents on the dollar.

It is a big shocker.

This shows how much the high- yield municipal bonds have been hurt over the course of the last year.

It shows you how they have been doing better than high-yield municipals.

Our friend from cumberland advisers, very exciting, showing the aaa general obligation bonds are using more than taxable u.s. treasuries at this point.

That is incredibly unusual.

It shows you how much damage has been done by detroit, primarily.

You see that this is supposed to be a safe investment?

That is right.

What we have gotten out is that everyone has realized it is not quite as safe as people thought.

Back in two minutes.

? tomorrow on "money moves," amazon earnings, and i will be enjoined by a specialist who will be here, also the ceo of a technology company, the company that streamlined the mobile workforces around the world.

They just made a lot of cash from a lot of vc's in silicon valley.

Those are just two of our guests.

It is time to get you caught up on the markets.

Dominic chu has the latest.

Here is how markets are trading right now.

You can see most of the major indexes are pretty much flat to down, down for tens of 1% for the s&p, the dow jones down about 1/4 of 1%, and the nasdaq is cleaning -- clinging on to some modest gains.

Some of the others we are looking at, general dynamics, reporting earnings that beat estimates, and there gulfstream business jet revenue helped offset the lacking revenues in another division.

And one of the biggest movers on the s&p 500, reporting second- quarter earnings, moody's corp., raising demand for all of the credit grade, and electronic arts is at a five-year high after reporting that there was a smaller than projected first- quarter loss.

They thought they would lose about 60 cents per share, in one stock that is popping today is eli lilly.

Let's talk with that with olivia sterns who went out to eli lilly hq.

Olivia, what have you learned?

This is a strong center results.

Net income rose 31%. but i think the real reason we are seeing that is they raised the guidance, and they did that in an environment where they are about to fall off of a patent cliff.

These drug companies always faced these patent cliffs.

Sombalta is a big one for them.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change