Consumer Barometer, The Worst Career Advice, Soaring Student Loans

TOM: BLOOMBERG MONEY, PERSONAL FINANCE, RETIREMENT, WEALTH MANAGEMENT. JOBS DAY. A LOT OF OTHER THINGS TO TALK ABOUT. A MOMENT OF SILENCE, PLEASE. PETER DUKES. IN 2003, CANDACE GOT ME A PUNK IS BY SCOTT FEET. 'TIS THE SEASON. PETER DUKES INVENTED THIS AT STARBUCKS YEARS AGO. SCARLET: IT IS NOT FEEL LIKE EVEN THOUGH IT IS 85 DEGREES TODAY. TOM: WE HAVE A VERY INTERESTING SHOW, A CONCEPTUAL SHOW. NOT LIKE THE TWO YEAR YIELD. WE WILL TALK ABOUT THAT IN A MOMENT, BUT I THINK IT IS A VERY DIFFERENT SHOW TODAY. SCARLET: WE ARE GOING TO TALK ABOUT HOW WE WORK AND HOW ONE GENERATION WORKS DIFFERENTLY THAN ANOTHER, SPECIFICALLY GEN Z VERSUS THE OLD TIMERS. TOM: SUSAN WELCH WILL JOIN US OF NEW YORK UNIVERSITY. REALLY IMPORTANT CONVERSATION ABOUT THE GENERATIONAL SHIFTS AROUND PERSONAL FINANCE. SCARLET: WE HAVE THE CHIEF ECONOMIST AT APOLLO. TORSTEN GOES BEYOND MACRO ECONOMICS TO EVALUATE THE BIG PICTURE FOR INVESTING. SCARLET: I JUST LOOKED AT THE TWO YEAR YIELD TO OPEN THE SHOW AND IT IS TOPSY-TURVY. TOM: 5% YET? IT IS A NUTS DAY TODAY WITH IN THE MARKETS STARTING EARLY IN THE MORNING. THE EQUITY MARKETS RIGHT NOW HAVE BEEN ALL OVER THE PLACE. OFF THE JOBS REPORT, A CONTINUES. NOT LIKE IT WAS BUT WE WILL TAKE IT. THE VIX IS EXTRAORDINARY. DISASSOCIATED. SCARLET: THE NASDAQ SORT OF NEAR RECORD HIGHS. LET'S TAKE A LOOK AT THE CROSS ASSET BOARD. THE 10 YEAR YIELD TURNAROUND ALONG WITH THE TWO YEAR YIELD. YESTERDAY, IT TOPPED 5.3%, THE HIGHEST SINCE 2002. THE DOLLAR IS DOWN BY .2%. OIL LOWER AS THE G7 MAY BE RELEASING SOME BARRELS FROM ITS STRATEGIC RESERVES. TOM: THE CURRENCY MARKETS, EVEN SWISS FRANC'S. THAT IS WHAT WE DO ON BLOOMBERG MONEY. IT HAS BEEN AN EXTRAORDINARY FRIDAY, MAINTAINING CONFIDENCE INTO OCTOBER, INTO THE END OF THE YEAR. WE CAN DO THAT WITH THE TEAM SELECTED HERE AS WELL. DAVID GURA IS WITH US THIS MORNING FROM BLOOMBERG THIS WEEKEND. INTO THE POLITICAL MAELSTROM. NIKKI WALLER IS HERE. A WIDE SET OF TOPICS. PERSONAL FINANCE IS SHATTERED WITHIN THESE MARKETS. NIKKI: GOOD THING WE ARE IN IT FOR THE LONG TERM. TOM: ROMAINE BOSTICK WITH US . WE ALL FOLLOW THE BLURB BUT ROMAINE IS REALLY CHANNELED IN AND WE WILL TALK ABOUT HIS PERSPECTIVE. SCARLET: HE TALKS TO A LOT OF CEOS AND HAS GOOD INSIGHT ON HOW THESE CONSUMER FACING COMPANIES ARE MANAGING THIS PERIOD. TOM: ROMAINE BOSTICK ON A FIRST WORD BASIS WITH JALEN BRUNSON. ROMAINE: I CALL HIM J. TOM: DAVID GURA, WHAT IS YOUR FIRST QUESTION TO RON ABOUT THE CACOPHONY WE ARE LIVING? DAVID: WHY IS THE VICE PRESIDENT GOING TO FLORIDA? WHAT DOES IT SAY ABOUT THEIR STRATEGY, THE REPUBLICAN STRATEGY GOING FORWARD. WE WERE PROMISED BY THE PRESIDENT A FEW MONTHS AGO, HE WILL CRISSCROSS THE NATION. HE IS STICKING FIRMLY TO THE RED STATES. TOM: THE PERSONAL FINANCE OF THE 50 STATES ARE FLAT ON THEIR BACK. WHY ARE THEY IN IOWA WHERE THE AFFORDABLY ISSUE -- GRASSLEY, 90 YEARS OLD IS APOPLECTIC. DAVID: YES, IN HIS 90'S. I THINK IN STATES WHERE WE ARE SEEING RACES INCREDIBLY CLOSE, CANDIDATES MAY NOT FEEL EASY WITH THE PRESIDENT GOING THERE BECAUSE OF WHAT HAPPENED IN THE ECONOMY MORE BROADLY. I WAS STRUCK BY WHAT THOM TILLIS SAID. RETIRING FROM THE SENATE. THIS IS A TIME WHERE IN THESE LAWMAKERS OF FOCUSING ON THEIR OWN STATES. THEY DON'T WANT TO HAVE THE BURDEN OF THE PRESIDENT IN THESE DISTRICTS. TOM: IS THIS WHERE HE MENTIONS DUKE IS 4-0? DAVID: I WILL NOT TALK ABOUT UNC FOOTBALL ON PRINCIPLE. SCARLET: WE GOT SOME JOBS NUMBERS TODAY. WE ALSO GOT CONSUMER CONFIDENCE THIS WEEK THAT PEOPLE FEEL REALLY LOUSY. EVEN THOUGH THERE IS JOB GROWTH AND WE HAD SOLID PMI NUMBERS THAT SHOW THE ECONOMY -- IT IS HARD TO GET AHEAD OF WHERE THINGS ARE. ROMAINE: RIGHT NOW, YOU HAVE A CONSUMER THAT IS BEHAVING A LOT BETTER THAN WHAT HE OR SHE ACTUALLY FEELS. I GUESS THAT IS WHAT IN THE SHORT-TERM BUT IN THE LONG TERM, IT RAISES QUESTIONS ABOUT ARE WE REACHING A BREAKING POINT? AND ABOUT THE MIDTERM ELECTIONS, THIS HAS COME UP TIME AND TIME AGAIN ON THE CAMPAIGN TRAIL. IT IS NOT FEEL LIKE A LOT OF PEOPLE IN WASHINGTON ARE PAYING A LOT OF ATTENTION TO IT, BUT A LOT OF THE RETAILERS AND APPAREL MAKERS AND THE COMPANIES SELLING GOODS AND SERVICES ARE PAYING ATTENTION. THAT IS ALL YOU HEAR ON THE CONFERENCE CALLS. SCARLET: NIKKI YOU SEE THAT WITH COMPANIES LIKE DAVE AND BUSTER'S. NIKKI: WE ARE SEEING REAL CONSUMER FATIGUE. WE KNOW IN PEOPLE'S FINANCES ARE STRESSED, THE FIRST THING TO GO IS THAT DISCRETIONARY SPENDING AND A FUN NIGHT OUT. THE OTHER THING THAT'S HAPPENED IS PLACES LIKE LUCKY STRIKE AND DAVE AND BUSTERS ARE NOT CHEAP ANYMORE. WE WERE LOOKING AT A COUPLE HUNDRED BUCKS FOR A NIGHT OUT WHEN ALL OF US CAN REMEMBER THE BOWLING ALLEY -- YOU CAN HAVE A GOOD TIME FOR $20. SCARLET: YOU CAN. ROMAINE: WHEN WAS THAT? SCARLET: BETWEEN WAGES AND INSURANCE COSTS, THAT HAS GONE WAY UP. YOU HAVE TALKED TO THE CEO OF NIKE A COUPLE TIMES. THEY HAVE THEIR OWN ISSUES, EXECUTION ISSUES. ELLIOTT HILL INHERITED A BUNCH OF PROBLEMS BUT IT SHOWS THE CHALLENGES THE CONSUMER DEPENDENT COMPANIES ARE FACING. TOM: IT IS ONE OF THE MORE ULTIMATE DISCRETIONARY NAMES. ROMAINE: THERE ARE SOME BROADER MACRO ISSUES. I WAS LOOKING AT THE ANECDOTAL FED DATA ABOUT WHERE SPENDING IS. SPENDING A STRONG ADD VALUE PLACES, THE COSTCO PLACES OF THE WORLD. DURABLE GOODS IS STARTING TO CIRCLE THE DRAIN. AT THE BOTTOM OF THE STACK IS APPAREL AND FOOTWEAR. IT HAD DONE BETTER AT THE START OF THE YEAR. PEOPLE ARE ONLY BUYING THE THINGS THEY EITHER ABSOLUTELY NEED OR THINGS THAT ARE REALLY UNIQUE AND EXCITING AND THERE'S NOT A LOT IN BETWEEN. TOM: MRS. KEENE HAS THE JAYLAND BRUNSON -- JALEN BRUNSON NIKES. I DON'T EVEN KNOW WHAT THEY COST. THE NAME STILL MATTER TO NIKE? ROMAINE: YES, IT MATTERS. WHEN THEY RELEASE THE EARNINGS REPORT, THEY ALSO RELEASE THE CAITLIN CLARK COLLECTION. THE MOST MONEY THEY HAVE BACKED FOR A WOMAN ATHLETE EVER. THE AMOUNT OF MONEY THEY ARE SPENDING RIVALS WHAT THEY WOULD SPEND ON SOME OF THEIR MALE ATHLETES. THEY SEE HER AS THE FOCAL POINT FOR THE ENDORSEMENT BRANDING. THEY ARE NOT SELLING. JORDAN IS DOWN, SPORTSWEAR IS DOWN. THE ONLY REAL BRIGHT SPOT, THE NIKE BRAND IN NORTH AMERICA. NOT SELLING ANYTHING OVER IN EUROPE NOW. THIS IS A STORY WHERE PEOPLE HAVE OPTIONS, AND FOR A LOT OF PEOPLE, THOSE OPTIONS ARE NOT NIKE. SCARLET: PEOPLE ARE BEING SELECTED WITH THEIR SPENDING, BUT DAVID, IF YOU LISTEN TO THE PRESIDENT, THERE IS NO AFFORDABILITY CRISIS, NO CHALLENGE. AS FAR AS HE'S CONCERNED, HE FIXED WHATEVER INFLATION PROBLEMS EXISTED. DAVID: I THINK THAT IS RIGHT. WHAT WE HAVE FROM THE PRESIDENT IS THIS PROMISE OF A $5,000 DIVIDEND. THE PROMISE THAT COME ELECTION DAY, THE WAR WILL END, OIL PRICES WILL COME DOWN. THERE IS FRUSTRATION AMONG THE AMERICAN PEOPLE WITH HAVING TO HOLD ONTO THAT. I THINK THERE IS THIS TALK ABOUT SENTIMENT, A REAL DISCONNECT. THE $5,000 CHECK WAS A THROWAWAY LINE AT THE REPUBLICAN CONVENTION IN DALLAS. IT CONTINUES TO HAVE LIFE. LAWMAKERS ARE HAVING TO DEAL WITH HOW THEY DID THESE CONSTITUENTS? NIKKI: THIS HAS BEEN A LITTLE BIT OF REPUBLICAN TALKING POINT. AMERICANS ARE FAIRLY RICH. ONE OF THE THINGS WE ARE LOOKING AT AND MONEY IS LATER THIS YEAR, THE FED WILL RELEASE ITS SURVEY OF HOUSEHOLDS CONSUMER FINANCES. WE ARE GOING TO SEE HOW IT IS THAT PEOPLE ARE MANAGING TO SHOP AND SPENT EVEN WITH EVERYTHING THEY ARE FACING. WE CANNOT AVOID THAT PEAK -- THE FACT THAT PEOPLE HAVE RETIREMENT ACCOUNTS. PEOPLE HAVE HOMES, BY AND LARGE. THEY ARE PRETTY GOOD SITUATION WITH THE MORTGAGE. WHAT FEELS BAD SOMETIMES IS THE DISCRETIONARY STUFF. ON TOP OF THAT -- SCARLET: YOU HAVE AI LOOMING OVER EVERYONE. YOUR TEAM WROTE ABOUT HOW THERE'S A NEW REPORT HAVE AI MAY FORCE 11 MILLION WORKERS INTO NEW JOBS. NIKKI: IT IS A REALLY BIG NUMBER FROM MCKINSEY AND IT SHOWS THE EXTENT OF WHAT WE COULD BE LOOKING AT IN THE NEXT COUPLE YEARS. AND HOW OUR JOBS ARE GOING TO CHANGE, WE DON'T KNOW. IT IS ONE OF THE THINGS THAT IS HELPING PEOPLE FEEL NOT SO GREAT. TELL ANYONE THERE IS BIG CHANGE COMING, BUT WE CANNOT TELL YOU HOW. IT WILL BE KIND OF PAINFUL AND THAT ADDS UP SYSTEM -- TO SOME REALLY DARK CONSUMER SENTIMENT. TOM: DAVID MENTIONED THE CAROLINAS. FOR HIS BIRTHDAY, WE NEED TO UNDERSTAND THIS IS LIKE HIS SECOND JOB. HIS REAL JOB IS KNEELING A MAJOR PENTATONIC SCALE WITH INCREDIBLE ABILITY HERE. DAVID GURA PLAYING FIDDLE A FEW WEEKS BACK. ♪ [LAUGHTER] ♪ TOM: I WAS NOT SURE WHICH VIDEO WE HAD. THAT WAS A CELEBRATION DURING COVID. SCARLET: THOSE ARE SOME SKILLS. [LAUGHTER] TOM: DURING COVID AS WELL. SCARLET: HAPPY BIRTHDAY DAVID GURA. WE WILL MAYBE GET YOU TO DO THIS LIVE ONE DAY. DAVID: I WOULD LOVE TO. WE CAN BRING THE BAND TOGETHER. SCARLET: WHAT IS YOUR INSTRUMENT? NIKKI: TRIANGLE. SCARLET: I WILL BRING THE COWBELL. THANK YOU SO MUCH TO ALL OF OUR GUESTS TODAY, NIKKI WALLER, DAVID GURA AND ROMAINE BOSTICK. TOM: COMING UP, WE HAVE REALLY IMPORTANT DISCUSSIONS. THE HUGELY ANTICIPATED, MY ESSAY OF THE YEAR LAST YEAR. SHE IS THAT NYU AND THIS WILL GET SOME HEAT GOING IN THE ROOM. CONTROVERSIAL FROM SUZY WELCH. SCARLET: WE WILL LOOK INTO ALL THAT INCLUDING HER RESEARCH ON DECISION-MAKING AND HOW IT APPLIES TO YOUR MONEY MOVES. THIS IS "BLOOMBERG MONEY." TOM: PUMPKINS FIVE. SCARLET: YOU ARE NOT INTO IT, HUH? TOM: WHAT A DAY. THE JOBS REPORT. EUROPEAN HYDROCARBONS AND ALL THAT. SCARLET: FRENCH BOND PRICES FOR ANYONE WHO IS PAYING ATTENTION TO WHAT'S GOING ON IN EUROPE. TOM: A LITTLE OFF-TOPIC ON THAT. SOMEONE BEYOND IMPORTANT. SUSIE WELCH, NYU STERN SCHOOL BUSINESS PROFESSOR WHICH BARELY DESCRIBES HER IMPACT. WE WILL TALK ABOUT THE PATH TO ACADEMICS AND ALL THAT. I CAN GIVE YOU THE EXACT DATE. SEPTEMBER 24, 2025. I SAID, YEAH. IS GEN Z UNEMPLOYABLE? IT IS SIMPLE. A BLISTERING ESSAY IN THE WALL STREET JOURNAL ABOUT THE KIDS. HOW DAMAGED ARE THE KIDS? THIS IS THE MORNING MUSTER RIGHT HERE. THE MONEY MUSTER I SHOULD SAY. THIS IS FROM THE ESSAY. IT IS SIMPLE. THE MESSAGE IS OFTEN MET WITH THE PUSHBACK THAT BUSINESS NEEDS TO CHANGE. WHAT HAS A FOCUS ON ACHIEVEMENT GOTTEN US BUT ANXIETY? ONCE A LIFE OF SCOPE WITH ACTION AND A DECENT PAYCHECK WHEN THE WORLD IS ALREADY UNSTABLE? HOW DAMAGED ARE THE KIDS OUT OF COVID? SUZY: I DON'T KNOW IF I WOULD USE THE WORD DAMAGED. I LOVE GEN Z. I THINK THEY WERE CHANGED. MAYBE THEY WERE CHANGED EVEN BEFORE GEN Z. WHAT THE PANDEMIC REINFORCED IS THAT THEY DID NOT WANT TO POSTPONE JOY. THEY DID NOT WANT TO EARN THEIR HAPPINESS. THAT'S ACTUALLY A VERY ANCIENT CONCEPT. YOU WORK HARD AND THEN YOU EARN YOUR GOLD WATCH AND YOUR RELAXATION AND YOUR RETIREMENT BASICALLY. YOU WORK HARD AND THEN YOU PLAY HARD. WHAT HAPPENED IS THAT THEY SAID, WE DON'T LIKE THAT ARRANGEMENT. WE WOULD LIKE TO NOT POSTPONE JOY. THE BOTTOM COULD FALL OUT AT ANY TIME. MAYBE THERE IS NO JOY SO WHY WOULD WE SIGN-UP? TOM: IS THE STEAM COMING OUT OF MY EARS SCORCHING YOU? SCARLET: THEY HAVE SUBSCRIBED TO YOLO IN AN EXTREME WAY. WHAT DO OLD PEOPLE LIKE TOM AND ME GET WRONG ABOUT THE SKILLS THAT YOU NEED AND HOW TO BUILD A CAREER TODAY FOR THIS COHORT OF GEN ZERS WHO DON'T WANT TO DELAY JOY? SUZY: PEOPLE FROM OLDER GENERATIONS HAVE AN ARRAY OF VALUES. ACHIEVEMENT MORE. THEY HAVE AN EQUATION IN THEIR HEADS THAT YOU HAVE TO WORK TO GET YOUR TIME OF PLEASURE. MAYBE THEY ARE RIGHT. I DON'T SUBSCRIBE TO IT. I WORK ALL THE TIME AND I LOVE WORKING. I WOULD SAY THAT IF YOU WERE MANAGING GEN Z AND YOU CANNOT PUT YOUR FINGER ON WHY THEY ARE DRIVING YOU DAISY, THERE ARE WORDS FOR IT. THEIR VALUES ARE DIFFERENT THAN YOURS. DEPENDING ON HOW MUCH POWER YOU HAVE, YOU CAN DECIDE WHETHER OR NOT YOU WANT GEN Z WITH THAT ATTITUDE OR YOU CAN GET GEN Z WITHOUT PYONGYANG TOM: ARE THERE TWO GROUPS -- WITHOUT. TOM: ARE THERE TWO GROUPS? I HAVE ONE WHO KNOWS THE KING'S ENGLISH. THERE ARE TWO PARTS OF GEN Z. THERE'S A PART THAT I GREW UP WITH. THEN THERE'S THIS COHORT YOU'RE TALKING ABOUT. SUZY: NOT EVERYONE IN GEN Z IS THE SAME. IF YOU LOOK AT THE NUMBERS. 2% OF GEN Z HAVE THE VALUES THAT WE WOULD TYPICALLY ASCRIBE. TOM: 2%? SUZY: THEY EXIST. THERE'S A CAGE MATCH OF ORGANIZATIONS AND INDIVIDUALS WHO ARE TRYING TO HIRE THAT 2% AND THE REST HAVE A DIFFERENT SET OF VALUES. THEIR TOP VALUE IS SELF-CARE AND WELL-BEING. THEIR SECOND VALUE IS AGENCY, WANTING TO MAKE ALL THE DECISIONS. VOICE IS THEIR THIRD VALUE. AUTHENTIC SELF-EXPRESSION. TOM: HOW DO YOU SAY THIS WITH A STRAIGHT FACE? SCARLET: MY QUESTION IS, HOW MUCH OF THE RESPONSIBILITY RELIES WITH SCHOOLS? YOU HAVE TO HAVE THE KNOWLEDGE TO MOVE FORWARD WITH THESE KINDS OF DEMANDS. UNIVERSITY PROFESSORS DON'T APPEAR TO BE EQUIPPING THESE YOUNG PEOPLE WITH THE RIGHTS WILL -- SKILL SET. SUZY: THEIR VALUES ARE FORMED BY THE TIME THEY GET TO SCHOOL. PROFESSORS FEEL THE SAME WAY ABOUT THIS. COOLS HAVE LEARNED TO CATER TO IT BECAUSE THEY ARE GETTING IN STUDENTS WHO HAVE A CERTAIN SET OF VALUES. THOSE STUDENTS TEND TO ARRIVE WITH TOTALLY DIFFERENT VALUES. IT'S HAPPENING EARLIER THAN THAT. I HAVE ONE LITTLE PIECE OF DATA THAT I JUST GOT RECENTLY. WE WENT TO THE LAB THAT I WORK IN AND WE GAVE OUR VALUES TEST TO 300 OF THE TOP EXECUTIVES AT A LARGE BANK THAT SHALL REMAIN NAMELESS. IT'S A WILDLY SUCCESSFUL BANK BASED IN NEW YORK. WE GAVE THE VALUES BRIDGE TEST TO THE TOP 300 EXECUTIVES BECAUSE THE CEO ASKED ME TO. 91% VALUE OVERLAP WITH THIS GROUP. UNBELIEVABLE. 91% HAD THE SAME VALUES. THEIR TOP VALUES WERE WILDLY DIFFERENT THAN THE PEOPLE THEY WERE MANAGING. THEY DIDN'T HAVE GEN Z'S TOP TWO VALUES, AGENCY AND VOICE. WE HAVE THIS VERY SUCCESSFUL COHORT OF EXECUTIVES AND THEY ARE MANAGING PEOPLE WITH DIFFERENT VALUES. THIS IS WHAT'S CAUSING THE TENSION. SCARLET: THE KNOCKING HEADS. SHE WILL SHARE -- TOM: CAN WE DO TWO HOURS OF THIS? MAKE IT A WELSH LECTURE? SCARLET: BLOOMBERG MONEY. MUCH MORE COMING UP AFTER THIS. WE ALSO NEED TO TALK ABOUT THE PASSION PART OF IT. TOM: YES. THE FISH ARE ALIVE. WE ARE STILL GETTING THAT. PEOPLE THINK THE FISH ARE FAKE. SCARLET: THEY ARE TOTALLY REAL. TOM: THIS IS IMPORTANT. LET'S GET TO IT. SCARLET: WE WANTED TO ASK YOU ABOUT THE WORST CAREER ADVICE THAT YOU EVER GOT. I KNOW SOMETHING THAT DRIVES YOU BANANAS IS SOMETHING THAT STEVE JOBS USED TO TELL EVERYONE. FOLLOW YOUR PASSION. SUZY: YEAH. I'M HOLDING ON. I THINK MAYBE YOU SHOULD BUT MAYBE YOU SHOULDN'T. PASSION, OFTEN YOUR INTEREST, IS JUST ONE PART. IT'S A THREE LEGGED STOOL WHEN YOU TRY TO BUILD A CAREER THAT'S SUSTAINABLE. YOU HAVE A SET OF VALUES. EVERYONE HAS A SET OF VALUES. YOU HAVE APTITUDES. FOLLOW YOUR PASSION IF YOU'RE GOOD AT IT. I WOULD BE THERE WITH BEYONCE IF I WAS FOLLOWING MY PASSIONS BUT I'M TERRIBLE. STUDENTS WANT THIS WONDERFUL ANSWER. I UNDERSTAND WHY PEOPLE GIVE THIS ADVICE. IT FEELS VERY GOOD TO SAY, JUST FOLLOW YOUR PASSION. I WOULD SAY ANOTHER PIECE OF IT IS, PEOPLE DON'T KNOW WHAT THEIR PASSIONS ARE. WE HAVE A GENERATIONAL COHORT WHO WILL SAY WITH SERIOUSNESS, SOME DAYS I WANT TO BE A VETERINARIAN BUT IN THE AFTERNOON I WANT TO START A TECH COMPANY BASED ON AI. YOU HAVE TO CHOOSE BETWEEN THOSE I'M AFRAID. TOM: I WANT TO DOVETAIL THIS ALTOGETHER. YOU HAD A FATHER-IN-LAW WHO, YOU HAVE A VOICE WHEN YOU ARE IN BOSTON AND A RAILROAD CONDUCTOR. JACK'S FATHER WAS A CONDUCTOR ON A TRAIN A MILLION YEARS AGO. THAT HERITAGE WASN'T ABOUT A VOICE OR STUFFY BRILLIANTLY STUDIED HERE. WHAT DID YOU LEARN FROM JACK WELCH ABOUT GRINDING THROUGH THE INVESTMENT DAY? SUZY: I'VE OFTEN THOUGHT ABOUT WHAT JACK'S VALUES WERE. I WOULD HAVE LOVE TO KNOW WHAT HIS VALUES WERE. HE BELIEVED IN ENJOYING YOUR WORK. I DON'T WANT PEOPLE TO TAKE OUT WHAT THEY FIND TO BE AN ENJOYABLE THING. HE BELIEVED IN HARDWARE. HE WAS DRIVEN. WE LEFT OUR HONEYMOON EARLY BECAUSE WE MISSED WORK SO MUCH. THAT WAS OUR SHARED PERSONALITY TYPE. I THINK HE BELIEVED IN WORK. THE TERM FUN EMPLOYMENT WOULD HAVE DRIVEN HIM CRAZY. PURPOSELY NOT WORKING TO HAVE FUN. BUT WORK IS FUN. I THINK THAT HE WOULD HAVE SOME THOUGHTS. SCARLET: SO HIS APTITUDE WAS HARWARD. SUZY: HIS APTITUDES WERE TOO MANY TO LIST. SCARLET: THANK YOU SO MUCH FOR JOINING US. WE WERE JUST GETTING STARTED HERE. CAREER MANAGEMENT AND DECISION-MAKING. COMING UP, A CONVERSATION WITH THE CHIEF ECONOMIST AT APOLLO. WE WILL FOCUS ON PERSONAL FINANCE, RETIREMENT, AND WEALTH MANAGEMENT. THIS IS BLOOMBERG MONEY. TOM: BLOOMBERG MONEY. SCARLET FU AND TOM KEENE. AFTER THE JOBS REPORTS AND THE GYRATIONS WERE STAGGERING INTO OCTOBER. SCARLET: THIS ROUNDS UP A VERY VOLATILE SEPTEMBER WHICH IS TRADITIONALLY A BAD MONTH FOR STOCKS. TOM: I REALLY WONDER, OFTEN TIMES, WE REPORT ABOUT SUCH AN ARC OF AMERICA. SCARLET: LET'S THINK A LOOK AT WHERE STOCKS ARE TRADING NOW AS WE HEAD TOWARDS THE END OF THE WEEK, THE END OF TRADING FOR THE WEEK. WE WERE LOOKING AT THE MAJOR INDEXES LOOKING AT GAINS FOR THE MOMENT. THE NASDAQ CLOSED THE RECORD TERRITORY. THE NASDAQ 100 UP ABOUT 1%. VIX GOES DOWN TO 15 AND CHANGE. TOM: BLOWING UP ON ACROSS ASSET BASIS. IT IS ABSOLUTELY EXTRAORDINARY. 10 YEAR YIELD. TWO YEAR YIELD EVEN MORE. $102 ON DXY. HIGHLY UNUSUAL. SCARLET: AS WE MENTIONED, TODAY'S TRADING WAS DRIVEN BY THE JOBS REPORT, THE SEPTEMBER JOBS REPORT THAT CAME OUT AT 8:30 A.M. OUR LEAD REPORTER COVERING THE DATA RELEASED JOINS US NOW. COMING INTO THIS DATA POINT, IT LOOKED LIKE THE LABOR ECONOMY WAS DOING WELL AND THEN WE GET THIS SURPRISE WHICH SHOWS US MUCH SMALLER THAN EXPECTED INCREASE IN THE NUMBER OF JOBS ADDED. >> IT WAS A SMALLER NUMBER THAN EXPECTED. A LOT OF ECONOMISTS ARE SAYING IF YOU LOOK AT THE THREE-MONTH AVERAGE WHICH IS WHAT A LOT OF ECONOMISTS ARE DOING NOW BECAUSE THERE HAS BEEN SO MUCH VOLATILITY, THAT NUMBER IS 51000 AND THAT IS ABOVE THE BREAKEVEN RATE. ECONOMISTS ARE NOT TOO WORRIED. IT IS ALSO NOT A HEATING UP ECONOMY. SCARLET: WE SAY THAT BECAUSE WE LOOK AT AVERAGE HOURLY EARNINGS WHICH CAME IN COOLER THAN EXPECTED. JULIA: I THINK THAT ALSO HELPS THE FED. YOU ARE SEEING THE JOB MARKET IS NOT PUSHING UP INFLATION, BUT AS WE KNOW NOW, YEAR OUR TAX AVERAGES HOURLY EARNINGS WAS 3%. TOM: YOUR CHART ON AVERAGE ARE HOURLY EARNINGS IS THE MOST IMPORTANT CHART. THAT AFTER ADJUSTING FOR ANY KIND OF INFLATION. JULIA: I WILL SAY IT IS A LITTLE WONKY BUT WHEN THE REPORT WAS TAKEN, BECAUSE IT WAS ENDING BEFORE THE 15TH, SOMETIMES THAT CAN MAKE AVERAGE HOURLY EARNINGS A LITTLE BIT LOWER. SCARLET: JULIA, THANK YOU SO MUCH, OUR BLOOMBERG U.S. ECONOMY REPORTER HELPING US MAKE SENSE OF THE LATEST JOB REPORT. LET'S BRING IN TORSTEN SLOK, CHIEF ECONOMIST AT APOLLO. TOM: WE ARE THRILLED HE IS WITH US WITH AN ECLECTIC VISION FROM DEUTSCHE BANK OVER TO APOLLO. I LOOK AT THIS AND THAT THING INTO THE WEEKEND, IN TERMS OF FINAL --PERSONAL FINANCE, RETIREMENT AND WEALTH MANAGEMENT, IS WE HAVE A TOPLINE BULL ECONOMY GDP LIKE WE'VE NEVER HAD. DISCUSS IT. IT IS LIKE AFTER NAPOLEON'S WAR, AFTER WORLD WAR II, THIS GDP IS A SHORT AND REPEATED TORSTEN: BECAUSE WE HAVE STRONG TAILWINDS OF GROWTH FROM THE AI BOOM, THE ONE, BIG BEAUTIFUL BILL AND THE HOME SHORING OF PRODUCTION WHICH IS DOING REALLY WELL. WHAT IS MOST NOTEWORTHY IS THE WEAKER DATA FOR BUSINESS FORMATION IS TELLING YOU THAT NUMBER OF NEW BUSINESS IS CREATED EVERY WEEK IS AT THE HIGHEST LEVEL EVER IN U.S. HISTORY. WE'VE NEVER HAD A DYNAMIC ECONOMY AS WE ARE HAVING AT THE MOMENT. TOM: BRING THIS OVER TO THE RETIREMENT PLANS WHERE EVERYONE IS IN FOUR INDEX FUNDS TRYING TO GET IT DONE. IF WE HAVE A ROARING ECONOMY, ARE WE AT RISK WITH OUR RETIREMENT? TORSTEN: WHAT IS REALLY IMPORTANT ABOUT THIS DISCUSSION IS SOMETHING WE TALKED ABOUT FOR YEARS. NOW WE HAVE A HUGE CAPITAL NEED FOR FINANCING AI. IN THE MEANTIME, WE HAVE A HUGE CAPITAL NEED FOR FINANCING THE GOVERNMENT. WE WENT FROM A SAVINGS GLUT FROM 2010 TO 2020 WHERE THERE WAS A SIGNIFICANT AMOUNT OF SAVINGS FOR CHINA, FROM SAVERS, FROM PEOPLE WHO HAVE A 401(K). TODAY, THERE ARE SO MANY THINGS TO INVEST IN. YOU COULD ALSO DECIDE TO INVEST IN AI. A NUMBER OF PROJECTS THAT NEEDS CAPITAL IS VERY SIGNIFICANT AND THAT IS WHY THE INTEREST RATES KEEP GOING UP BECAUSE THERE'S A SHORTAGE OF CAPITAL RELATIVE TO THE SAVINGS WE'VE HAD FOR MANY YEARS BEFORE THE PANDEMIC. SCARLET: AS STRONG AS THE NUMBERS INDICATE, IT IS NOT FEEL LIKE IT FOR A LOT OF PEOPLE. THE CONSUMER FACING PART OF THE ECONOMY FEELS LIKE IT IS A COMPLETELY DIFFERENT STORY THAN WHAT'S GOING ON IN AI AND ALL THE CAPEX AND THE BUILDUP OF THE AI INFRASTRUCTURE. TORSTEN: THAT IS BECAUSE THE ECONOMY IS BIFURCATED INTO A STRONG AI SPENDING BOOM. AND YOU HAVE THE INTEREST RATE SENSITIVE PART OF THE ECONOMY, HOUSING AND AUTOS. HOUSING MORTGAGE RATES, 2.7 AND NOW IT IS 7.2. IT HAS BECOME UNAFFORDABLE TO BUY A HOUSE. IF YOU ADD THAT TO AFFORDABILITY ISSUES WITH HEALTH CARE, EDUCATION, OIL PRICES, THAT IS WHAT CONSUMER CONFIDENCE -- TOM: WEALTH MANAGEMENT, WITHIN JUST BASIC WEALTH MANAGEMENT, PROJECT OUT ONE YEAR, THREE YEARS, FIVE YEARS OUT OF HOW WE BRING DOWN THIS ODD BOOM ECONOMY. WHERE WILL THE DAMAGE BE? THAT IS WHAT BLOOMBERG MONEY PEOPLE WANT TO KNOW. TORSTEN: THE KEY CONCLUSION IS INTEREST RATES WILL STAY HIGHER FOR LONGER. FROM A 60/40 PORTFOLIO PERSPECTIVE, THAT MEANS WE NEED TO TALK MORE ABOUT FIXED INCOME BECAUSE THE YIELDS, IT IS ACTUALLY REALLY JUICY IF YOU GO BACK AND LOOK AT HISTORY. THAT MEANS RATES AND HIGH QUALITY CREDIT, YOU CAN GET HIGH LEVELS OF YIELDS THAT YOU HAVE NOT BEEN ABLE TO GET FOR DECADES. TOM: SCARLET, JUICY IS CFA LEVEL 4. SCARLET: YOU DON'T HAVE TO GO INTO FIXED INCOME. YOU COULD KEEP MONEY IN CASH AND DO PRETTY WELL GIVEN WHERE DEPOSIT RATES ARE. THIS IS SOMETHING YOU HAVE WRITTEN ABOUT, THIS IDEA THAT PEOPLE WHO KEEP THEIR MONEY IN CASH WITH THE USE OF AI, THAT BECOMES A WHOLE DIFFERENT PICTURE BECAUSE AI CAN REALLY CHANGE BEHAVIOR IN A WAY THAT THE INDUSTRY, THE FINANCIAL INDUSTRY IS NOT QUITE PREPARED FOR. TORSTEN: WE'VE HAD A LOT OF CONVERSATIONS ABOUT MUSE. SCARLET: THE META APP. TORSTEN: A PERSONALIZED SYSTEM THAT CAN MAKE YOUR LIFE EASIER IN DIFFERENT WAYS. ONE WORRY IS IF THAT MAKES YOUR LIFE EASIER BY SWIPING OUT CASH YOU HAVE IN YOUR CHECKING ACCOUNT OR INTEREST RATE IS AT 0.01%, IF YOU CAN SLIDE THAT INTO ANOTHER ACCOUNT, SUDDENLY MY MONEY GOES INTO MY ACCOUNT AND IT GOES OUT. TOM: DO YOU DO MUSE? TORSTEN: WE HAVE TO FIGURE OUT HOW MANY PEOPLE ARE GETTING THEIR DATA TO MUSE. TOM: YOU'VE GOT TO BE KIDDING ME. YOU WILL GIVE ZUCKERBERG AND THAT PROVE YOUR PERSONAL FINANCIAL DATA? TORSTEN: IT IS ALREADY POSSIBLE IN MANY DIFFERENT WAYS TO TAKE YOUR MONEY IN AND OUT OF YOUR CHECKING ACCOUNT. SOMETIMES IT TAKES DAYS, SOMETIMES IT TAKES LESS TIME BUT AT THE END OF THE DAY, IF YOU CAN SWIPE YOUR MONEY OUT OF THE CHECKING ACCOUNT WHERE YOU ALSO GET A HIGHER YIELD. I THINK THIS IS THE WAY WE ARE MOVING. THAT MAY NOT BE HAPPENING WITH MUSE AND THE PERSONAL ASSISTANCE FROM AI BUT THAT IS HOW THINGS ARE MOVING. WITH BLOCKCHAIN TECHNOLOGY MAKING THESE THINGS A LOT EASIER. TOM: CAN WE MENTIONED BLOCKCHAIN IN BLOOMBERG MONEY? SCARLET: I THINK WE CAN. I FEEL LIKE THAT WILL INTRODUCE A LOT MORE VOLATILITY. THE NUMBER YOU SEE TODAY MAY NOT LAST FOR VERY LONG. TOM: THAT IS TRUE AND THAT IS, ALSO WHY THE RISK IF MONEY MOVES AROUND MUCH QUICKER AND SUBSCRIPTIONS ARE CANCELED AND SUBSCRIBED TO MUCH QUICKER, IT WILL HAVE A MORE VOLATILE ECONOMY. TORSTEN: THAT IS WHY AI CAN BE DISRUPTIVE. IT CAN BE DISRUPTIVE IN THE NORMAL PRODUCER ECONOMY BUT ALSO IN PERSONAL FINANCES. TOM: THIS COMES RIGHT OVER TO WEALTH MANAGEMENT, RETIREMENT, THE PSYCHOLOGY OF WHAT WE ARE DOING. YOU ARE AN EXPERT ON THE CONTINENT OF EUROPE. IS THE CONTINENT OF EUROPE -- ARE THEY GOING TO BECOME MORE ANGLO-AMERICAN IN THEIR CAPITALISM? WE'RE PRAYING FOR THEM TO TAKE MORE RISK, OR EQUITY RISK. DO YOU BUY IT? TORSTEN: OVER TIME, THIS WILL COME BECAUSE THE EUROPEANS UNDERSTAND THIS. THEY NEED GROWTH, THEY WILL ABSOLUTELY HAVE TO GROW THE ECONOMIES AND HAVE MORE DEVELOPED FINANCIAL MARKETS. IF WE SIT IN GERMANY OR DENMARK OR FRANCE AND WE HAVE A GOOD IDEA, YOU WILL NEED TO GO INTO YOUR BANK AND SAY CAN I BORROW SOME MONEY? IF THEY SAY NO, YOU HAVE NO OTHER PLACE TO GO. FINANCIAL MARKETS IN THE U.S., YOU CAN GO TO VENTURE CAPITAL, PRIVATE EQUITY, ANOTHER BANK. THERE ARE DIFFERENT PLACES YOU CAN GO AND HAVE THIS DISCUSSION. TOM: I HAVE ONE MORE BECAUSE SCARLET HAS SMARTER QUESTIONS. DID YOU KNOW I BOUGHT THE AUSTRIAN 100 YEAR PAPER? TORSTEN: SORRY TO HEAR THAT. TOM: I WAS A YIELD HAWK. A RELEASE SCREWED UP ON THIS AND TORSTEN SAID DON'T DO IT. I THOUGHT THE 100 YEAR PAPER AND IT IS DOWN LIKE 80%. AT LEAST I DIDN'T BUY IT LEVERAGED. THAT WAS CASH. TELL ME ABOUT YIELD RIGHT NOW GIVEN THESE NON-GYRATIONS WITHIN THE RETIREMENT? TORSTEN: WHAT IS IMPORTANT IS THE RATION WHICH TELLS YOU BONDS CAN BE VERY RISKY. WE ARE FIGURING OUT THAT ANYONE WHO HAS PUBLIC U.S. TREASURIES AND PUBLIC CREDIT ARE VERY DURATION SENSITIVE. THAT IS WHY BEING SHORT ON DURATION IS A GOOD IDEA AT THE MOMENT. WHAT IS ALSO A GOOD IDEA, SECURE SOME OF THE CAPITAL STRUCTURE BUT MAKE SURE YOU ARE SHORT OF THE DURATION DEBT SO YOU ARE NOT EXPOSED TO THOSE MOVES. SCARLET: IF YOU ARE EARLY ON IN YOUR RETIREMENT PLANNING, YOU HAVE DECADES LEFT TO WORK AND YOU WANT TO PUT MONEY AWAY -- YES, YOU PUT IT INTO EQUITIES BUT WE KEEP HEARING ABOUT ALTERNATIVES. THE IDEA THAT THIS IS STILL A GOOD PLACE TO GO WITH INTEREST RATES RISING CONFUSES ME BECAUSE PRIVATE EQUITY AND PRIVATE CREDIT GOT THEIR HEYDAY BECAUSE RATES WERE SO LOW. NOW THAT RATES ARE HIGHER, HOW IS THIS STILL A GOOD TIME? TORSTEN: AS LONG AS YOU HAVE HIGH QUALITY PRIVATE EQUITY -- THAT IS AS GOOD AS INVESTMENT GRADE FROM THE U.S. GOVERNMENT. THAT'S EXACTLY IS THE WHOLE POINT THAT WHEN SOMETHING IS INVESTMENT GRADE, IT IS ABLE TO HOP -- PAY THE HIGHER DEBT SERVICING COSTS. MAKE SURE YOU INVEST IN COMPANIES -- I KNOW IT SOUNDS TRIVIAL, AND IN COMPANIES THAT HAVE EARNINGS, THAT ACTUALLY MAKE MONEY AND ABLE TO PAY HIGHER INTEREST RATES WE ARE FACING. SCARLET: LOTS OF THINGS WERE RATED INVESTMENT RATED THE LAST GO AROUND AND IT TURNED OUT THEY WEREN'T. TORSTEN: THAT IS TRUE. TODAY, A LOT OF THINGS ARE INVESTMENT GRADE RATED BY SEVERAL RATING AGENCIES. INVESTORS NEED TO THINK ABOUT THE BROAD SPECTRUM OF RISK. YOU CAN TAKE VENTURE CAPITAL WHERE YOU HAVE NO EARNINGS THE NEXT FIVE YEARS. THAT'S A DIFFERENT TYPE OF RISK RELATIVE TO INVESTING IN PRIVATE CREDIT. THE ABILITY TO PAY THE HIGH DEFICIT. TOM: ONE FINAL IDEA. ARE YOU IN ON THE NEW YORK YANKEES? YOUR APOLLO TOOK A MINORITY INTEREST IN THE NEW YORK YANKEES. ARE YOU STEALING FROM TAMPA BAY IN NEW YORK? TORSTEN: I WILL WEAR IT AND IT WILL BE FUN. TOM: THAT WAS COMPLIANCE PROOF. SCARLET: WERE YOU PART OF THE RED SOX GAME? TORSTEN: I WAS PERSONALLY NOT PART OF THAT BUT WE ARE SO PROUD. SCARLET: THANK YOU SO MUCH, TORSTEN SLOK. REALLY APPRECIATE IT. COMING UP, MILLIONS OF AMERICANS RISING EXPENSES ARE ANOTHER PRESSURE POINT ON TOP OF THEIR STUDENT LOANS. GUESS WHAT? THOSE LOAN PAYMENTS ARE GETTING BIGGER. WE WILL EXPLAIN WHY. ♪ SCARLET: IT IS YOUR NEW DESTINATION FOR PERSONAL FINANCE. A CROSS-PLATFORM EFFORT THAT EXTENDS BEYOND YOUR TELEVISION SCREEN INCLUDING OUR NEW DIGITAL HUB AT BLOOMBERG.COM/MONEY. THIS WEEK, A STORY THAT FEELS EXTREMELY RELEVANT RIGHT NOW IS ABOUT SOARING STUDENT LOAN BILLS AND AFFORDABILITY BECAUSE EVERYTHING IS MORE EXPENSIVE BUT NOW, THERE HAS BEEN THIS REORGANIZATION, RESTRUCTURING OF OVERHAULED STUDENT LOANS THAT HAS LEFT PEOPLE WITH STUDENT LOAN DEBT PAYING EVEN BIGGER. TOM: I'M CONFLICTED ON THIS. SCARLET: LET'S BRING IN ONE OF THE AUTHORS OF THIS STORY, SARAH FOSTER. THIS HAS TO DO WITH JOE BIDEN AND WHAT HE DID FOR STUDENT LOANS AND I WOULD PRESIDENT TRUMP IS DOING, RIGHT? SARAH: A LOT OF AMERICAN STUDENT LOAN BORROWERS ARE CAUGHT IN THE CROSSHAIRS OF THE SHIFTING FEDERAL STUDENT LOAN DEBTS PAYMENT PLANS. WE SPOKE WITH MY COLLEAGUES, WE PROFILED STUDENT LOAN BORROWERS ACROSS THE COUNTRY ASKING THEM WHAT PAYMENT PLANS THEY ARE PICKING, HOW THEIR BILLS ARE CHANGING, HOW IT IS IMPACTING THEIR FINANCES AND MANY OF THE BORROWERS WE SPOKE WITH TOLD US THAT THE PAYMENTS HAVE IN SOME CASES DOUBLED. SCARLET: THAT IS BECAUSE THEY ARE CHOOSING BIGGER PAYMENTS AS ASK -- AS OPPOSED TO EXTENDING THEIR LOANS FOR LONGER, RIGHT? >> THERE ARE TWO NEW -- LONGER REPAYMENT WINDOWS ARE HIGHER BILLS THAT CAN ACCELERATE REPAYMENTS. IT'S RESULTING IN A LOT OF AMERICANS WHO TOOK ON STUDENT LOAN DEBT CHOOSING BETWEEN PAYING STUDENT LOAN BILL ORDERS SAVING FOR OTHER GOALS. BORROWERS MENTIONED THAT THEY ARE HAVING TO SACRIFICE. TOM: YOU DO RESEARCH ON THIS. IS THERE ANY UNDERSTANDING THAT FOR DECADES, PEOPLE PAID THEIR STUDENT LOANS? SARAH: ONE BORROWER HAS CONTINUED TO MAKE PAYMENTS FOR ALMOST 20 YEARS AND HE SWITCHED TO MULTIPLE PLANS. HE'S GONE BACK AND FORTH ON FORBEARANCE. HE'S GONE TO GRADUATE SCHOOL. IT'LL TIMIDLY RESULTED IN THE INTEREST BEING EVEN HIGHER THAN THE PRINCIPAL BALANCE THAT HE TOOK OUT. SCARLET: THE AMOUNT THAT PEOPLE ARE BORROWING NOW IS DIFFERENT THAN WHAT THEY WERE BORROWING 20 YEARS AGO. TOM: I AGREE WITH THAT. SCARLET: I DON'T KNOW THAT IT'S A FAIR COMPARISON. THE OUTSTANDING STUDENT LOAN OUT THERE IS MASSIVE COMPARED WITH CREDIT CARD LOANS OR AUTO LOANS. TALK ABOUT THE MAKEUP THERE. SARAH: WE LOOKED AT THE COMPOSITION OF DEBT THAT A LOT OF HOUSEHOLDS HAVE. IT IS STILL THE CASE THAT HOUSING DEBT MAKES UP THE BIGGEST SHARE. WHEN YOU COMPARE AUTO LOANS AND STUDENT LOAN DEBT, THOSE ARE IDENTICAL. IT'S THE INCREASE SINCE THE EARLY 2000 THAT IS A MAJOR HURDLE. TOM: PERSONAL FINANCE. EARLIER IN THE WEEK IT WAS A SHOCK AND IT WAS SO IMPORTANT FOR US. SARAH IS LIVING THIS. 30 YEAR MORTGAGE RATE. WHO KNOWS WHERE IT WILL BE MONDAY OR A MONTH FROM NOW? THE TRAJECTORY IS REALLY SHOCKING. THE LONG-TERM TREND, THE FREE LAUNCH EXPANDED OUT TO 8000 SQUARE FEET AT THE BOTTOM THERE. HOPE WE GO FROM THREE TO 7%. THIS IS A PROFOUND IMPACT EVEN FOR PEOPLE WHO AREN'T LOOKING FOR A 30 YEAR MORTGAGE. SARAH: I GO BACK TO THE BEGINNING OF THE YEAR AND I THINK ABOUT WHAT I WAS HEARING FROM ECONOMISTS WHO I WAS SPEAKING WITH. THE HOPE WAS THAT 2026 WOULD BE BETTER FOR US. WE SAW MORTGAGE RATES TIP LOW 6%. SCARLET: RIGHT. THE IDEA IS THAT WE WOULD SEE INTEREST RATE CUTS FROM THE FEDERAL RESERVE AND THAT WOULD BRING DOWN MORTGAGE RATES AND ALLOW FIRST-TIME HOMEBUYERS TO FINALLY BE ABLE TO BUY THE HOME. SARAH: IT HAS BEEN SO DIFFICULT. WHAT WAS ORIGINALLY THOUGHT OF THE CEILING IS NOW BEING QUESTIONED AS TO WHETHER IT'S THE NEW FLOOR. AS LONG AS THE WAR IN IRAN CONTINUES, OIL PRICES, DIESEL AT RECORD HIGHS. THIS IS GOING TO CONTINUE TO BE A PROBLEM. TOM: WE DESTROY SARAH FOSTER'S WEEKEND. THIS IS MY A TUNNEL READ WHICH I THINK IS INCREDIBLY IMPORTANT ON BONDS. IT'S A HIGHLY READABLE LOOK AT THE HISTORY OF BONDS FROM VENICE TO AMSTERDAM TO LONDON AND OVER TO ALEXANDER HAMILTON. THIS IS A TRIUMPH BY ROBIN WIGGLESWORTH. A FABULOUS DEBT, A QUOTE FROM ENGLAND AGES AGO. I CAN'T SAY ENOUGH ABOUT THE READABILITY OF THIS. IT READS LIKE DANIEL YOUR AGAIN. SCARLET: DOES IT DEMYSTIFY THE BOND MARKET? TOM: IT DOES. TOM KEENE BABBLE IN ENGLISH. I CAN'T SAY ENOUGH ABOUT IT. SCARLET: MARY KEIO WROTE A FANTASTIC REVIEW OF THIS BOOK. I'M CURIOUS WHETHER IT WILL TURN INTO A TV SERIES ON NETFLIX OR SOMETHING ELSE. THERE ARE SPECIFIC EXAMPLES OF WHAT HAPPENED IN AND STARTED -- AMSTERDAM. WHAT HAPPENED WHEN ALEXANDER HAMILTON WAS LEADING THE TREASURY? TOM: BRINGS EVERYTHING. IT EVEN HAS MARY CHILDS IN THE BOOK. GREAT BOOK. I LOVE IT THIS WEEK. SCARLET: AT THE HEART OF THE PE INDUSTRY, ONE OF THE SINGLE MOST SIGNIFICANT WEALTH GENERATORS IN THE PAST 40 YEARS. LOOK AT WHO OWNS ALL THE SPORTS TEAMS. GRETCHEN MORTENSEN AND JOSHUA ROGERS. THESE ARE THE PLUNDERERS. NOT SUBTLE AT ALL. THEY CLEARLY HAVE A POINT OF VIEW. IT'S ABOUT HOW PRIVATE IT -- PRIVATE EQUITY FINANCIERS USE DEBT TO GENERATE BIG PROFITS FOR THEMSELVES. REALLY REMAKING THE ECONOMY IN THE PROCESS. WE ARE NOW SEEING IT. TOM: WHAT I HEAR ALL THE TIME, YOU CAN'T DO THIS WITHOUT READING BACKGROUND. THAT'S WHAT THESE BOOKS DO. THEY ARE BACKGROUND TO MAKE YOU HAVE A DEEPER THOUGHT ABOUT WHAT WERE DOING AND PERSONAL FINANCE. SCARLET: SO MANY YOUNG PEOPLE SAY THAT THEY WANT TO GO INTO PRIVATE EQUITY. THIS IS BEFORE THEY EVER WORKED IN BANKING AT ALL. BECAUSE THAT'S HOW YOU BUILD WEALTH AND MAKE A LOT OF MONEY. THAT'S THE NEW INVESTMENT MAKING AND WALL STREET. SARAH: IT'S TRUE. THERE'S AN -- ARISE IN EARNERS WHO REALIZE YOU DON'T GROW WEALTH THROUGH YOUR SALARY ALONE. ESPECIALLY IF YOU ARE ABLE TO TAKE A JOB THAT MOVES YOU INTO STOCK OPTIONS. MAYBE THE ABILITY TO WORK FOR A COMPANY THAT IPO'S. TOM: WHERE AM I GOING TO BE IN FOUR YEARS? SARAH: INVEST -- AND VESTING SCHEDULE IS DIFFICULT. THERE IS SO MUCH VOLATILITY IN THE MARKET THAT YOU HAVE TO CONSIDER. SCARLET: SARAH FOSTER, REALLY APPRECIATE YOU JOINING US. COVERAGE OF STUDENT LOANS AS WELL AS MORTGAGES. FOR THE LATEST REVIEWS AND RECOMMENDATIONS FROM BLOOMBERG, SUBSCRIBED TO THE NEWSLETTER. TOM, YOUR BOOK ONCE AGAIN. TOM: THANK YOU SO MUCH. THE FABULOUS DEBT. SCARLET: IT MAY FEEL LIKE SUMMER. THE LEAVES ARE CHANGING. WILL YOU PUT GAS IN YOUR TANK TO GO SEE FALL FOLIAGE? A LOOK AT WHAT PEOPLE ARE SPENDING THEIR MONEY ON THIS WEEKEND. THIS IS BLOOMBERG MONEY. IS THAT CENTRAL PARK? BLOOMBERG MONEY. GOOD AFTERNOON APPEARING IN ANY NUMBER OF THINGS TO TALK ABOUT TO GET THROUGH THE WEEKEND. AS WE SAID, YANKEES CRUSHED THE RED SOX. NO ONE WAS MORE HAPPY THAN LISA MATEO. LISA HAS BEEN GARBED IN THE DREADED NEW YORK YANKEES MERGE HERE OVER THE YEARS. LISA: TOM, I'M SO SORRY. WE HAVE TO GO ON. YES. THE FABULOUS JACKET. THANK YOU TO TOM KEENE WHO LOOKS SO HAPPY. TOM: IT IS TOO MUCH. SCARLET: FIRST GAME OF THE AL DS ON SATURDAY. LISA: SATURDAY. YES. THEY SWEPT BOSTON. WE ARE MOVING ON SATURDAY TO TAMPA BAY. FROM SATURDAY YOU GO TO MONDAY. WEDNESDAY THEY BRING YOU BACK HOME. THAT'S WHEN YOU START LOOKING UP TICKETS. MY HUSBAND IS ALREADY ASKING ME. TOM: TALKING ABOUT PERSONAL FINANCE. LISA: IF YOU LOOK BEHIND WHERE THE YANKEES SAID, $6,000 FOR ONE TICKET. TOM: SO $12,000. LISA: JUST THE STARTING. IF YOU GO TO THE 300 SECTION, IT IS ABOUT $300. EVERYONE IS ASKING. TOM: YANKEES BEAT RED SOX. SCARLET: SPECIAL FOR YOU. TOM: WHY DON'T WE SEGUE TO WHAT MATTERS IN THE AUTUMN GLOW? SCARLET: A LOT OF PEOPLE DRIVING OUT AND CHECKING OUT THE FALL FOLIAGE. LISA: IN THE POCONOS, YOU SEE IT ALREADY. THEY HAVE THIS GREAT FAIRY THAT TAKES YOU ON THIS WHOLE BEER TREK THING. STRAIGHT UP THE HUDSON RIVER. IT'S AMAZING. SCARLET: JUST-IN-TIME FOR PEOPLE TO VISIT THEIR SCHOOL -- KIDS AT SCHOOL. VISITING WEEKENDS COINCIDE WITH THE FALL FOLIAGE. LISA: CORRECT. I JUST CAME BACK FROM VISITING MY DAUGHTER. SCARLET: IF YOU HAPPEN TO FLY, UNITED WANTS YOU TO DEFECT FROM DELTA. LISA: THE BATTLE OF THE WI-FI. UNITED OR DELTA? UNITED HAS ELON MUSK STARLINK AND DELTA DOES NOT. THEY HAVE AMAZON LEO. IN-FLIGHT WI-FI SERVICE. IT'S THE WHOLE BACK AND FORTH. UNITED IS TRYING TO GET DELTA'S CUSTOMERS TO SAY, WE WILL TAKE YOU ON AND KEEP YOUR LOYALTY POINTS. TOM: I KNOW WE DO PERSONAL FINANCE. BECAUSE OF LISA'S APPEARANCE, SPACEX HAS SPIKED UP TODAY. AND THEN STARLINK. SCARLET: AMONG MANY BUSINESSES. THAT'S PERSONAL FINANCE. LISA: MY DAUGHTER HAS A BIG ANATOMY PHYSICS TEST TODAY. SO STRESSED OUT BUT IT'S GOOD. SCARLET: THANK YOU SO MUCH. MAKE SURE TO WATCH BLOOMBERG THIS WEEKEND EVERY SATURDAY AND SUNDAY MORNING. THAT DOES IT FOR BLOOMBERG MONEY TODAY. HAVE A GREAT DAY.