Scott Bessent

That somehow after they expire, then they go back to the old rate. Spending never changes. Spending never has to get renewed. And I think when I look and think about a mental model and how do systems work, how do they break down, one of the things that has caused this spending bulge is this idea that you never had to rescore spending.

That somehow after they expire, then they go back to the old rate. Spending never changes. Spending never has to get renewed. And I think when I look and think about a mental model and how do systems work, how do they break down, one of the things that has caused this spending bulge is this idea that you never had to rescore spending.

Yeah. I mean, it's OPM. It's other people's money. But Danny DeVito had that movie. But you would regard that as being a good politician. Right. Like you brought home the bacon for for your district.

Yeah. I mean, it's OPM. It's other people's money. But Danny DeVito had that movie. But you would regard that as being a good politician. Right. Like you brought home the bacon for for your district.

That because. The CR, a lot of people didn't like it, but one of the things that a lot of people didn't like, there were no earmarks in it. How dare they? Totally.

That because. The CR, a lot of people didn't like it, but one of the things that a lot of people didn't like, there were no earmarks in it. How dare they? Totally.

So we are re-examining all the bank regulations. And why are they there? Why do banks have to, I can't remember, it's five or seven percent to hold treasury bills. What are the regulations? Why do, I had a whole group of community bankers or small banks here last week, and why do they have to hold the same amount of capital

So we are re-examining all the bank regulations. And why are they there? Why do banks have to, I can't remember, it's five or seven percent to hold treasury bills. What are the regulations? Why do, I had a whole group of community bankers or small banks here last week, and why do they have to hold the same amount of capital

that JP Morgan and Wells Fargo and Citi hold when they don't have the complexity, they don't have, why do the regulators, one of these small bankers said, well, Bank of America does it this way. Bank of America has a trillion dollars in deposits. This was $183 million bank.

that JP Morgan and Wells Fargo and Citi hold when they don't have the complexity, they don't have, why do the regulators, one of these small bankers said, well, Bank of America does it this way. Bank of America has a trillion dollars in deposits. This was $183 million bank.

But I know you all talk about incentives a lot. Back to incentives. What's a regulator's incentive just to keep tightening the corset? They don't care about growth. They don't care about the common sense.

But I know you all talk about incentives a lot. Back to incentives. What's a regulator's incentive just to keep tightening the corset? They don't care about growth. They don't care about the common sense.

Well, it doesn't have to be rates, but if we do all the things I was just talking about, if we deregulate, if we have cheap energy, if we shed excess labor from the government, if we get government spending down, then rates, inflation should come down, rates should come down. But on the question of how are we going to measure it, I don't have any problem with private credit.

Well, it doesn't have to be rates, but if we do all the things I was just talking about, if we deregulate, if we have cheap energy, if we shed excess labor from the government, if we get government spending down, then rates, inflation should come down, rates should come down. But on the question of how are we going to measure it, I don't have any problem with private credit.

I actually think it's exciting. It's dynamic.

I actually think it's exciting. It's dynamic.

And the strength of the US financial system is the depth and now the breadth. But you could see that what's happened that so much lending is being pushed outside the regulated banking system, that tells you it's over-regulated. Right, yeah. So now, once we, so one test will be, how has bank lending, especially small regional, small banks, community banks, that come and go, and these small banks,

And the strength of the US financial system is the depth and now the breadth. But you could see that what's happened that so much lending is being pushed outside the regulated banking system, that tells you it's over-regulated. Right, yeah. So now, once we, so one test will be, how has bank lending, especially small regional, small banks, community banks, that come and go, and these small banks,

that small banks and community banks, they're 70% of ag loans, they're 40% of small business loans. And that's one of the reasons Main Street's been stifled.

that small banks and community banks, they're 70% of ag loans, they're 40% of small business loans. And that's one of the reasons Main Street's been stifled.