08:21
KEENE: Jim O'Neill with us, Goldman Sachs.
Jim, your colleague, Ed McKelvey, talking $500 billion. I would suggest most economists looking for a tranched QE2.
Set up the difference. What's going to be - why should we care about $100 billion, $100 billion, $100 billion, versus a McKelvey $500 billion?
O'NEILL: Well, you have to ask about Ed about that. These days, of course, I'm chairman of the asset management division. But, you know, to some extent, it may not matter.
I think what's important is when we go into the FOMC meeting, how the Fed explains what it's going to do, as well as probably the (inaudible). You know, and I think linked to some of the controversies within the FOMC debate, it's probably the case that the Fed doesn't want to shoot all its bullets too quickly, because obviously there is very - a large number of uncertainties, including how much the economy might need it. So, you know, I'm personally in the camp to do a little at first, but to make it clear that if need be, there'll be plenty more coming.
KEENE: What else do you see out there? As you mentioned, you've got a new shingle on the door for Goldman Sachs Asset Management. How are you linking your economics to the grind of finding a better Sharpe ratio?
O'NEILL: You know, I think one of the reasons why I've taken this opportunity is that I see a remarkably diverging, changing, but exciting world out there, which many people, certainly the vast number that are listening to your program, as well as many in the professional markets, they don't really realize how dramatically the world is changing. And I would argue for the better.
There are hundreds of millions of people being taken out of poverty all over the world. And as I linked in a piece I wrote over the weekend it sounds like you guys have seen, you know, I think we have to stop talking about many of these places as the so-called emerging world.
They are front and center of the same plummet that all the rest of us live, and they are becoming rapidly more wealthy very quickly. The future of the U.S. for the next decade probably depends on exporting to all these places. And in my new position, I want to help grow the asset management world to think better and smarter about how to help all of our clients from this exciting universe.
KEENE: In 30 seconds, for our friends listening in London, what's Wayne Rooney going to do?
O'NEILL: Oh dear. Unfortunately, I think there's been some real breakdown of relationships there, and he might be on his way, I'm afraid to say.
KEENE: Where would you think he would go?
O'NEILL: I'm not getting -
KEENE: Come on, Jim.
O'NEILL: I'm not getting into that. I'm not getting into that. I hope he stays with Manchester United.
KEENE: That would be a safe answer.
Jim O'Neill -
PREWITT: Thank you, Jim.
KEENE: - Goldman Sachs Asset Management.
08:24
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