I'd like to thank the Center for the Education of Women and their Director, Gloria Thomas, for cosponsoring our event this afternoon. I'd also like to welcome the university's Chief Financial Officer, Kevin Hegerty, and Loreta Thomas, the Associate Vice President for Human Resources at the University of Michigan. Today's event is part of the Ford School's annual City Foundation lecture series, which enables us to bring some of the world's most prominent policy leaders and thinkers to campus. And so it really is a pleasure to welcome all of you here today to hear one of the most distinguished macroeconomists, Dr. Roger Ferguson, who is President and Chief Executive Officer of TIA-CREF. Well, you'll be hearing more about TIA-CREF shortly. Let me just simply say that it is one of the nation's largest financial institutions. It works to help people provide, to help provide financial security for more than five million customers in academia, medicine, a variety of different nonprofit sectors, and it manages assets that are worth nearly $900 billion. In fact, the University of Michigan was the first institution to formally provide resources, send money in to TIA-CREF. So there's a very special relationship there, which is something that we're proud of. And TIA-CREF has been the retirement provider for the University since 1919. It's also been named by Black Enterprise Magazine as one of the 40 best companies for diversity. Again, you'll be hearing more about the institution shortly. Well, I first met Roger Ferguson when he was a PhD student at Harvard and I was an undergraduate. He was known by many, certainly me included, as a really thoughtful, level-headed, valuable resource, and that is a reputation that really, truly continues to this day. As some of you may know, on September 11th, 2001, Roger was vice chair of the Board of Governors of the Federal Reserve, and in fact, he was the only Fed governor in Washington, D.C. on that fateful day, and it was his decisive level-headed actions in the aftermath of the attacks that really helped to keep the U.S. financial system functioning and avoided what could have been a financial disaster. Roger continued his public service as a member of President Obama's Council on Jobs and Competitiveness, and as a member of the panel of Economic Advisers for the Congressional Budget Office. And he recently co-chaired the National Academy of Sciences Committee on the long-run macroeconomic effects of the aging U.S. population. Again, one of the topics that we'll spend some time on this afternoon. Roger has really shaped policy from the private and nonprofit sectors as well, has had a financial services for Swiss Ray on the boards of several nonprofits, and of course, since 2008 in his current role as CEO of a Fortune 100 provider of retirement services. This is Roger's second visit as a policy talks lecturer and third recently to the university, and he's being very generous with his time. We very much appreciate the time that he will be spending with our faculty and students as well as participating today. While he shares the stage with another renowned macroeconomist, the University of Michigan's own Professor of Economics and Public Policy, Justin Wolffers. Justin was named by the IMF as one of the 25 economists under 45, shaping the way we think about the global economy. And by the New York Times as one of the top 13 young economists to watch. His ideas and views can regularly be seen in print media. And if you are following him on Twitter, you have probably, like me, enjoyed his unique humor and insight. He is known for making economics accessible and interesting. And so we're particularly delighted to have him join the conversation today. He has recently returned to teaching at the Ford School after two years in Washington at the Brookings Institution and the Peterson Institute for International Economics. We're delighted to have him here as well. So before we launch into today's conversation, I'd like to remind our audience that if you have a question for either of our speakers, please write it on one of the cards that you should have received when you came in to the auditorium today. Volunteers will collect your cards. And Ford School Professor Betsy Stevenson along with two of our students, Drake Baglietto and Travis Harold will facilitate the question and answer session which we look forward to as well. If you're watching online, please tweet your questions. Use the hashtag policy talks. And so, it is my pleasure to turn the floor over to Roger Ferguson and Justin Wolffers. Welcome. Thank you. Sir Roger, welcome, welcome to my home. I just learned the scariest thing by the way. My boss follows me on Twitter. I don't know what that means. Let's start at the beginning. What is this organization you run, TIAA-CREF? Good. Well, thanks, Justin. And it's a pleasure to be here. So I think you heard a bit from Susan. TIAA-CREF is a Fortune 100 company, a couple of things you should know. First, it's not publicly traded, so you can't buy or sell our stock. And secondly, it is a not-for-profit organization. So it's in that sense different from any other big national institutions. As Susan said, we have been in existence since 1918. And our purpose is to provide for financial well-being for folks in the not-for-profit sector, as you heard. Primarily we do that by focusing on retirement. So we allow people to save for retirement from the day they join the faculty or staff or administration at a place like University of Michigan on to the very end. But we also provide a range of other services for individuals and institutions, banking, life insurance, trusts, services, endowment management, et cetera. And we do manage almost $900 billion. It moves up and down at the market to some degree. And we are pretty well known for the broad diversity of what we do. So equities for sure, fixed income products of all types, structured products. But not as well known, we are the number one and number two manager of real estate in the world, about $90 billion of real estate. We are in one or two in terms of ag land and timber. And we're very large in infrastructure. So an older company, started in 1918, well established, very safe, very secure, and importantly quite diversified. And the final plan I'd make is quite successful. So we have won the LIPPER award for the best large fund family for three years in a row, which looks at multi-year performance. And as my colleagues have reminded me, you've also got most of our money. Yes. You take good care of it? We, you're, as Susie said, our oldest client in terms of remittance, one of our largest, and yes, we take very good care of your money. And if you could make it even larger, that would be better. Well, I work at that almost every day when I'm not on a campus talking to people. And even as I'm sitting here, I'm thinking, what can I do to make Justin's retirement bigger? That's the perfect segue. So what are some of the big retirement mistakes that you see people making? I think the biggest one can be described as not thinking about it. And in fact, it's often said that people spend more time planning a vacation than they plan their retirement. And so the big headline is not thinking about it. What does that mean that people do that are a series of mistakes underneath that headline? First, people don't save enough. As a society, the Senate has estimated that we probably are short retirement savings well over $6 trillion, a huge amount of money. So what's going on there? First, many people don't participate in the retirement plan when they have one. About half of Americans haven't done that. Secondly, as I said, they don't save enough. The third thing that people do that's a mistake is they crack into their retirement nest eggs for a variety of things that are important to have, but not necessarily things that are more important in retirement, such as buying a home or buying a boat or things of that sort. So that's called leakage, technically. And then the final mistake that people often make is they get very excited about the size of their nest egg, how much they've saved, without actually thinking about how is that going to play out as retirement income? Because many folks are going to live in some version of retirement for 15, 20, maybe 30 years, and the mistake they make is not recognizing how long they're going to be in retirement. So there's a lot of people making a lot of mistakes. What can we do to help them not make those mistakes? Well, look, I think we can leverage what you and I and many folks in this room probably know of as some of the incentives slash approaches built in around behavioral economics, for example. So one idea is to automatically enroll people in a savings plan and force them to opt out. And thereby you're taking advantage of all the inertia that exists for all of us. The second may well be to do something that's called automatic escalation. So as people earn more, have them save more and have that again be automatic and then folks opt out. A third thing that we do that's really very important is give people a chance in their retirement plan to save, not just to accumulate assets, but also to think about the payout phase. And what I mean by that to put it less English, if you will, and more technical, have an annuity option as part of the plan option. So here, University of Michigan, you can all save as in the TIA program. And that gives you a chance to save what we call annuity units that earn payments while you're saving and then automatically or relatively easily allow you to roll over into retirement income. So this is again a bit of behavioral economics. On that last point I'd say in America overall about 2% to 3% of families or households are anortized within our system. By the time it's over, people have taken 70% of our participants or more, 75% have taken an annuity option as one of their options. And so, you know, it's a little bit of behavioral economics that gets people to do the right thing at the very end. So I know some of my freshmen here, so what is an annuity? Can you explain that? So an annuity is a financial product that basically allows you to use my company, let's say, to guarantee an income for you for life. And the way we do that is by pooling the lives of many millions of people, which therefore it's an insurance product, and then everybody gets paid out of that pool over time. And what happens in the way this works is for sure in a very, very large pool of people will have some folks who have the misfortune of having relatively short lives, will have the some folks who have the good fortune of having relatively long lives, and through actuarial science you can basically pool all those risks, early mortality, longevity, to create guaranteed income for life. And so ultimately what this allows you to do is instead of taking all the longevity risk on yourself instead of saying gee, I may live to be 100 or 110, you pool that risk with a bunch of other folks and that's the business that we're in. I hope that's clear enough. So that seems super logical, but don't you have sort of the opposite problem of health care? Like with health care, sick people want to buy it and healthy people don't, and it makes it expensive. And this, it sounds like people are going to live a long time want to buy it, others won't, it's going to make it expensive. That's exactly right. And so it's a little different health care in the sense that you may not really know what your outcome is likely to be. You may have a good, you go with a prior, right? You have a strong hypothesis. So, you know, my parents unfortunately didn't live for a very long life, so I might think gee, maybe I'm in for a shorter lifespan. You know, there are folks here whose parents may be in their 90s or 100s and you think well gee, I'm in for a longer lifespan. We've got that, but you pool all those folks together and you still end up having quite a distribution. But there's no doubt that there's a possibility of a selection bias against us, but the reality is that actually hasn't occurred and we've been doing this for 97 years, so even though they're really sharp economists like you who are out there trying to do selection bias against us, to date, that hasn't worked very well. So we would invite you, we hope that you're anewatized with us, right? And if you win the lottery and live for 140 years, my job is to be there where my company's job is to be there to pay you for 140 years. Okay, so it's a problem in theory but not in practice. It's a problem in theory and it's not yet been a problem in practice. Okay, so you've talked a little about like using behavioral economics to get people to save more. In my University of Chicago educated friends see this as the heavy hand of the state telling people what to do.  So who's forcing who to do what in this? Well, let's first start with the fact that we are not the state. So, you know, we are purely a private organization. You can think of us as being like a mutual. So in fact, who's forcing whom is at the end of the day a little bit of peer pressure, right? So good retirements, let's say on the University of Michigan campus, I've always thought of as being a pure public good, right? So all of the faculty and staff benefit from having everybody have secure retirements. Otherwise, what you'd find is there'd be faculty who were, you know, working, working, working and then retiring on campus potentially in poverty or staff or administrators. And so at the end of the day, it's like any other pure public good, I think. We all look around and say, effectively, we're in this together. So if you have a great retirement, but someone else in the Ford School has a lousy retirement at the end of the day, that negative outcome could come back and haunt, let's say Susan, as the dean having to worry about balancing these various outcomes. And so what we've done is effectively taken that burden off of the schools and we have allowed this, you know, public good process to work, if you will, by using some of these techniques. So I look at this as a really, you know, clever, I'd almost say brilliant. Since I didn't create it, I could say brilliant. I think it's a solution to, you know, a public good problem that we have in society that has now worked for almost 100 years. And do you think there are other nudges out there that can sort of push people to actually start thinking more about retirement? Oh, sure. I think there are a number of nudges. So for younger folks, one of the things we're doing is putting retirement in the context of a lot of life choices that you have to make. And so you have graduate students, there are some here. If you lead a conversation with the average 24-year-old around retirement, you know, eyes glows over pretty quickly. If you talk about the various journeys or the paths along a journey, and this is one of them, and so you start to think about that. You also talk about it quite differently. So I think you may know Jeff Brown, a retirement economist at Illinois. He's on our board. He's talked a lot about framing. So if you talk about this as retirement income, that gets people excited. If you talk about it as a saving, as a retirement salary, that's a positive thing. If you talk about it more as an investment, that tends not to lure people. So you think about framing. And the third thing that one can do, and this works for both institutions and individuals, is do just a little bit of comparison.  Right. And so you set a little bit of a target. So one of the things that we've described is, gee, it helps if you are, between you and your employer, are saving, let's say, 10, 15, 12 percent of your salary for retirement. That number may seem high, may seem low, but at least it starts to give people something to target, because people often ask, if I wanted to save, gee, how much can I save? So a little bit of framing, some targeting, some setting, some models to create a little bit of incentive, all those things seem to work. Yeah, I remember I was an assistant professor. I was asked to sign up for these things many years ago. This is out at Stanford. And the woman said, well, how much do you want to save? And I said, how much should I? And her answer was, I'm not allowed to tell you. Right. And this is a very interesting challenge. So we haven't talked much about it, but there's a number of things that the government could do that would make this a little easier. And in fact, some of the policies and procedures that have been put in place by the government have, I think, worked against really good retirement savings. Some are working in favor. But one of the things I do spend some time doing is trying to work with the Labor Department and others on how they can create an environment that's more friendly towards retirement savings. So I feel kind of reassured talking to you that you're looking out for my best interests and all these nudges are going to help make me wake up and make the right choice. But that's the freedom you have as a nonprofit. So the broader retirement savings world, presumably, is far less kind, gentle, and a little more interested in their own bottom lines. There's no doubt, for sure. Now, what you are seeing in the for-profit segment is many of these same tools and techniques are being used. I think the big difference, and one that I think is a challenge for all of us, is the kinds of annuities that exist in the for-profit world tend to be, have more bells and whistles, if I can use that phrase, tend to be relatively expensive. And so one of the challenges that we have is we, at TI at CRAF, have a very good user-friendly annuity that has withstood the test of time back by some of the best actuaries in the world. And we do this all in the interest of our participants, but we're coming up constantly against all the noise in the system that says, gee, annuitization is a bad thing. Annuitization is a bad thing. And so one of the challenges that we do have is exactly that, taking a product that can either be toxic or not, and educating people to why ours might be different. The other thing that differentiates us, we offer mutual funds, for example. Our fees tend often, in fact, almost always to be in the lower quartile, often lower decile. And obviously, as an economist and many of you in the room know, that the fees that are associated with your mutual fund may be one of the biggest determinants of outcome. And so you really want to look for something that is, like us, very, very low fee. And there's a risk there that things are masquerading, if you will, based on good return without discussing the fee. And that becomes a part of the challenge as well. Yeah, as you surely know, one of the great perils of being an economist is people stop you on the street, and they're like, what should I do with my money? You have some idea. And they've just been watching fast money on TV. Some friend of theirs just won a stockpicking competition. And they say, what should I do with my money? And the answer from 100% of economists is low-cost, diversified index funds. And then you're the most boring guy in the room. And you get ignored. Exactly. It's an institutional challenge. And so if you ask us, we'd actually say low-cost. We'd say broadly diversified. We certainly also offer a range of both index and active, because there are folks who want that as well. And it does become less exciting than the none-on-on time of its talk to pick. So the answer you can always give as an economist when someone says, the first thing you say is save, save, save. And then you go into the other components.   That's been my experience anyway. You are one of the groups that does low-cost, well-diversified grants. So actually, you said something interesting. You said you offer both index funds and also active management. For the audience, active management is you've got a guy in an expensive suit with computers in front of him. And he's sort of saying, we should buy a little bit of this, a little bit of that, and so on. Do any of your retirement money and active funds? I have mine across both index and active. And by the way, it's not guys. In our company, I think about a third of our portfolio managers are women. And so why do I do both? One, as a trained economist, I fully understand the notion of indexing, et cetera. The reality is we have seen, particularly in areas that are a little more opaque, so emerging markets, small cap, that active management, based on fundamental research, can be very, very helpful over the cycle. And so I have been thinking through this real challenge slash dilemma around index funds versus active. And the other thing that one has to recognize is that index funds do reasonably well and less volatile markets that tend to be relatively smooth. When you get to lots of volatility, and I'd like to see more science around this, it may well be that active also has a role to play. And so I, even with my economics background and understanding where you're coming from, think that's important to have both of these options and capabilities. And you watch them very closely. The other thing that I do is we encourage people to do what's called rebalancing, which is once a year you figure out what your risk portfolio is and their profile is. And some things will have done really well, be they're index or active, and then you take some of that money off the table and put into things that haven't done so well. Because there is also a general tendency in both, but certainly in active, that styles are in and out of favor. One of the reasons to do this is to do this rebalancing is you recognize that there are these big cycles in markets and either the index or the active could be caught on the wrong side of a cycle, which is why you also don't wanna do what's called rebalancing. Okay. So more broadly, so we've talked about mostly about retirement, but just generally a state of financial literacy, what do you see out there? State of financial literacy is abysmal. And it's abysmal, how can one describe a general lack of knowledge? The problem is that most parents are not very comfortable with this space. And I think that's actually a generational shift that has occurred. And then therefore their kids aren't very comfortable with this space. And obviously if adults and general uncomfortable teachers often uncomfortable with this space as well, not economics faculty, but others. And so I think there's this general lack of financial awareness that permeates society. And I'm not gonna give my little quiz now, but there's a little quiz that we've given and about 30% of America has a financial literacy that is truly tested at financially illiterate. The challenge that I think we have is how do you break into a society of general illiteracy? So you need to educate some group that can then educate other groups, et cetera. And so what we're trying to do is move away from relying so much on a small cadre of literate people to try to use again some more gamification kind of technologies and techniques to encourage people to take a better interest and then using videos and things of that sort. Hopefully that will be a path towards greater literacy. The only other thing that we're doing is we are supporting 15 graduate schools, each one of whom has joined a slightly different experiment with their pool of graduate students. And these are not business schools, these are graduate schools of arts and sciences to see if we can find one or two techniques that tend to work with millennials and see if we can popularize that. So hopefully by this time next year we'll have some answers out of that and we can start to make that more general. So the view is if you can even get philosophers to make sensible decisions you've really succeeded. Among other groups, we're not to pick on them if we can get the economists to make sensible decisions, we won't succeed. So you touched on this a little before, this big issue, long-term savings. Are we saving enough? As a society, no, certainly individuals are not and then one can go to the broader question of society overall. But if I could take this to a more macro level, I think broadly speaking, and you may disagree with this, one of the big challenges in America as a society overall is we are more prone to consumption as opposed to savings. Therefore, because of that, I think we're probably investing too little in some fundamental things, both infrastructure it's been talked about but also education. So I think individually on a micro level, many of us probably most of us should be saving more. And I think at a macro level as a society we should attempt to rebalance a bit more towards saving and investment as opposed to consumption. And the reason I think that's really important on the macro level, but tied to this retirement issue is the big mystery that we're all dealing with around why productivity is so low. Yes. And as a person who thinks about retirement, all of you young folks out there, I'm gonna support my retirement by supporting Social Security for example. And it really is important to me that you become much more productive and that we deal with this productivity challenge. So putting on my big hat or putting on my small hat, I want more savings because I want more investments because I think that's gonna help drive more productivity which I think will make everyone's retirement better but also make society better. So does that cover a broad enough arc? Micro, macro. A little bit of, and made it very personal. Yeah. It's also important. That's what we're looking for. And so this also gets this broader issue. The population is aging. The first of the baby boomers now is starting to retire. Right. That's a big demographic bulge coming through. How's that gonna shape the economy? Our needs over the next few decades. This is one of the areas that's really right for a lot of debate. So all of us will agree that they're gonna be 78, 80 million baby boomers entering a retirement age over the next several years. As Susan I think mentioned in the intro, one of the things I did was co-chair this National Academy of Sciences activity on the macroeconomic impact of an aging population. And I would say the profession is struggling with whether or not having an aging population means that you have to have a population or a society that becomes less productive over time. And there's actually no consensus around this. So there are a couple of things that I think we conclude can come off the table. There's one view that says, gee, as populations age, what we're gonna find is older people are tending to disinvest and they're tending to sell their homes. And so equity prices and real estate prices are likely to be depressed. I don't think there's really much theory that supports that. And certainly the reality to date doesn't suggest that equity prices or housing prices are being depressed as we move into all of us aging baby boomers retire. And there are a lot of reasons why that, I think, is not likely to be the case. The economists are really struggling with whether or not older populations tend to be less productive in an economic sense. And you look at to Japan, for example, you look to Germany, which is a relatively old population, aging more quickly we are. It's clear that my Japanese economists friends believe that their demographics are clearly weighing on the potential in that economy. I don't see that necessarily in Germany, for example. And so I think the jury's out. I think it has very much to do with the capital labor ratio and things of that sort that may drive that. So then we go to the final thing, which we know will be the case, which is social programs that are geared towards supporting the aging are clearly gonna be under great stress. Social security, Medicare, Medicaid are all gonna be under great stress because of this aging population. A few factories, when social security was started, the ratio of retirees to working people, I think, if I get this right, was one to 15 or something like that. We now are down over the next five or 10 years, we'll go to one retiree for every two folks working. And that clearly will have big implications for the economic viability of these programs. So while we're not sure about asset prices, we're not sure about productivity, we are certain that social programs that are geared towards aging are clearly gonna be under greater stress just because the numbers are starting to evolve in that direction. So let me change pace. It's not often I get to talk to a former vice chair of the Fed, particularly a former vice chair during an extraordinarily interesting period, which was the years leading up to, but not including the global financial crisis. So you got out while the getting was good. And so by one view, economic growth in the United States was a miracle while you were in control. By another very common view that I hear, what you were doing was creating the sets of imbalances that caused the US economy, the global economy to go kaput. What's your answer to that view? Like most economists, I fortunately have two hands and so I will give you both sides of that story. First, we should be really cautious. The Fed is incredibly powerful for sure, but in no sense does the setting of monetary policy drive as many outcomes as many people would like to think. So let's be modest about the role of the US central bank. So what do we know? We know that a large number of imbalances were building up and led to this crisis. I think there is certainly quite a bit of debate and Ben Bernanke and others have been part of this on the question of what was driving these imbalances. Back to one of the earlier points I made, the fact that the US was and continues to be such a consumption driven country, while China in particular was more of a savings country. So we had those sorts of international imbalances that many people think fed back into the US financial system by keeping long-term interest rates in particular lower than they would have been otherwise. And so even at the time, even when I was on the Fed, Greenspan was talking about the conundrum, Bernanke was talking about the savings glut. I in a far less recognized set of speeches was talking about an absence of investment, which is just the flip side of the savings glut. And so all of us are trying to understand this really big imbalance that was building up. It probably had very little to do with monetary policy and it had a lot to do with trade and with the nature of the US economy. And so here I'd say, all right, there were imbalances building up. Not sure monetary policy was driving the trade imbalances between the US and the rest of the world. Second set of imbalances that clearly were building up were in the housing market. And here I'd say, yeah, the Fed deserves some demerit for two things. One is I think the main theory of housing for a long, long time until the crisis was that housing markets in the US don't all go kaput at the same time. So you would have heard Greenspan talking about bublets, for example. Because the history of the US had been, all righty, in New England there was a housing crisis, a housing correction. Slowed down the Northeast States for a little while but didn't have a big national impact. Florida is very well known and the sun belt for big real estate booms and busts. Same thing was true of the Southwest, the same thing was true in Texas, same thing was true in California. And so I think a place where a lot of the economists, including those of the Fed missed a fundamental change was this notion of regional housing markets all being on exactly the same cycle, which is actually one of the things that appears to have happened. Ironically, not ironically, if you actually dig into the facts of where the 2007, 2008 housing boom and bust occurred, it actually still was a relatively small number of markets but it happens to have been that all of those cycles were exactly overlapping. And so I think that's a place where people go, all right, the Fed had a model of the way markets evolved, the guy housing markets that proved in hindsight to clearly have been wrong. So then the third thing that people often say is, well gee, coming out of the 2001, 2000, 2001, 2002 cycle where the tech bubble burst, the Fed was too slow in raising rates. I think here the debate still rages, right? Because in fact, we started moving rates up and moving quite aggressively at the short end of the yield curve but the yield curve itself was surprisingly flat which led to the conundrum and all these other things which Fed backdoor was a result of that first set of imbalances. So if I think about it, housing market and the housing boom, bust being a series of cycles that were working exactly in the same way at the same time, Fed missed it, bigger imbalances, not sure monetary policy could have touched those one way or the other. And then did we hold interest rates too low for too long, debate still out, but the reality is rates were rising pretty aggressively but the yield curve was surprisingly flat which then fed into some of these other things. So I'll leave it to you to decide, am I giving the Fed a B, a B plus? And you can decide, but I think there are clearly mistakes that the Fed made and I think there's some points where the debate's still out and I think there's some points where clearly the central bank couldn't have touched and had no impact on these imbalances. What about the charge you didn't respond to there is the charge of complacency. So banking supervision, I remember through this period, if you could get a really good job at the Fed you'd work on monetary policy and if they didn't really want to hire you, they'd stick you in a back room to do banking supervision. Well now here, now here, you've gone one step too far young man. No, I think that's, here I actually do think unfair to a degree. So let me try to be clear about why I gave you that sort of nuanced answer. In fact, for better or for worse, some of our smartest brains at the Fed were working on a problem that was visible to all, which was that the capital regime called Basel I and this is gonna get sort of technical but I think I'm not gonna go too far into technicalities. So the capital regime that was existing at that time called Basel I, all of us thought was not appropriately risk sensitive. That it didn't really reflect the risks built up in bank balance sheets now. So positive check for saying, look, here's a problem. Here's where I think things didn't come together very well. And I was personally involved in this, the process of negotiating the new capital standard called Basel II, which was meant to drive more risk sensitivity into banking did not ultimately end up in a successful place in time. Now in part, people say because indeed so many smart folks were working on it, it became much more complicated, much more convoluted. So just the opposite of your problem was some of the best brains in the Fed were working on this highly risk sensitive scheme of capital called Basel II. There are a number of other problems with it, frankly. One is it had to be consistent across countries and so we got involved in a very long protracted period of financial regulatory diplomacy where the US had every point of view and then get the British and the French and the Germans. And that was quite protracted. And then finally, elements of Basel II had to be adjusted to deal with different banking components here in the US, the small banks, medium-sized banks and large banks. So I've given you a longish answer to say, I don't think the Fed was complacent. I think we were aimed at the right thing. And here, the third point you can say was, your fault, lots of faults. We didn't get to the right answer quickly enough. And so I think complacency is not fair. But on the other hand, no doubt that, at least I think that everyone agrees with this, had we gotten to a much more risk sensitive capital standard more quickly, perhaps you could have at least not necessarily changed your directory of history, that's a strong statement, but forced banks to be much more prudent about some of the actions they took. And since that time, the international community has created this thing called Basel III. It looks exactly like Basel II in many ways, except it's just throwing many more parameters into the equation. So is it better or worse? I don't know, but the reaction to the crisis was in fact to go back to where we were, but to sort of modernize it in some ways. The final point I'd make, and then this to be quite clear, a fair amount of what was going on that led to the crisis was outside of the so-called banking system. I think everyone sort of recognizes that no one was really managing mortgage brokers and others who were then securitizing this stuff and throwing it into the system. And so the other challenge that I think we all had was all the bank regulators looking at the banks, we actually don't have a regulatory structure for the non-bank financial sector. And so that was a very large gap that I think has now been filled. Okay, so now last question, I just want to totally change directions. There's been a lot of student activism over the past year here at Michigan around race. And you are, I think, by any measure, the leading African-American economist of your generation. But ours is also a field that has really failed to be diverse. So I just wanted to make issue the invitation to sort of reflect on your experiences and tell us a little about how the field can do better. It's interesting. One, you took me back with the thought that I may be the leading African-American economist of my generation, which... I'm pretty confident that's right. It may be right. I don't, I'm not... No, I just never thought of myself in that vein. That's, wow, that's... Now, partially to be very honest, because there's so, the real point is there's so few African-American honest. No, there are. There are very, very few African-American economists. I'm 63 or 64. My generation of graduate school students, very few, frankly. And I think the challenge, and I'm not as close as I should be, now obviously, there are folks who won, in particular, who's just won the Bates Prize, the John Clark Bates Medal. So there are lots of other folks, but I think the real challenge in the profession is it is simply not diverse enough. And be that race, be that gender. Fortunately, we have gotten really good economists from the Pacific region, from Papua New Guinea, for example. I think that's been an element of diversity. So to be very serious about this, I think we have to understand, is there something about the profession that is off-putting to lots of people? And I think there are two or three things. One is, I don't think this has changed very much in my day, I would describe the profession as sort of very intellectually aggressive, if I can say that. Now, I had a bunch of folks who were my tenure, who were just waiting for me or someone else to make a mistake. It had nothing to do with race. It was just the nature of what a seminar was like. And that's not necessarily a very appealing environment to lots of folks. So why did I stick it out? For me, it was ultimately, I mean, I was just very, very lucky. My parents and my education led me to believe that the things that were happening to me were not necessarily around race. And if I wasn't good enough, it was up to me to be better. And so they didn't ask about me personally, but I think one of the things that we all have to think about when we get into these tough, tough situations is it's not necessarily about you personally. And people just mean to each other intellectually for the fun of doing that. And you have to either get into that game or not. So that's one thing. I think the second thing, frankly, and it's true even now, the range of interesting problems in economics, some of them have moved in and out of areas having to do with race and other things that people might be naturally attuned to. And so what was very interesting about the base prize, if I understand it, is it went to a young, to Roland Fry at Harvard, whose work, as I look at it, has a lot to do with race and different racial outcomes. So it's an unusual place for the profession to be recognizing that. I don't think people even in the profession thought that was an interesting set of topics to talk about after the 60s. So when I was coming along, it was all about monetary policy. Tough macro issues, things that maybe if you wanted to think about the community in which you grew up, there wasn't really space in academia to even make those legitimate questions. So one of the great things about what just happened is that whole set of questions has now become sort of quite legitimate again. So that might be helpful. So you've got the style of the profession being intellectually tough, and maybe that's not for everybody. You've got the question one that the questions that one might wanna explore being legitimate or not and looks like the pendulum has swung back to being legitimate. So I think those are a couple of things. The third, frankly, goes back to one of the big challenges. Math is, I mean, economics is a very mathematically driven profession. It doesn't have to be, as you well understand. The concepts are pretty intuitive, but you start to see black kids and women, girls fall out of math at a pretty young age. And so if you have a profession where the language is something that is folks are not encouraged to pursue starting at a young age, by the time you get to graduate school, if you haven't been thinking in calculus terms, and ready to work in calculus terms, it's pretty hard to get there. And starting and thinking about calculus terms starts based in the fourth grade or fifth grade because you have to, I might judge them, take calculus in high school in order to really make this work in college. And if you're being dissuaded from that for a variety of reasons, then it becomes very, very difficult. So three different kinds of answers, not sure they're necessarily, I know they're not complete, but those are at least my thoughts on this dilemma that we have of having this great profession that's incredibly important, but not very diverse in lots of ways. And we do have to overcome it, I think. Well, thanks for sharing that. We're gonna move to questions from the audience. If you haven't bored you all to death. Hope you have some questions. Yes, yes, yes. So good afternoon, everyone. I would like to thank you both for the awesome insight and your time. I'm Travis Harold. I'm a first year MPP student here at the Ford School. My interest is economic policy, so it was great to listen to that advice and suggestions that you both gave. Thank you. So the first question is for Mr. Ferguson here. Roger, you have been at the heart of monetary policy for many years. Following the post-2008 financial reforms, are we, as a country, better prepared for another financial crisis? So again, allow me to use both hands and say yes and no, right? And so what's worked, what has gotten better? Two or three things. There's no doubt that policy makers, regulators, legislators have put much more weight, forced banks in particular to put much more weight on risk and risk management. It's something we've always done, so we welcome everybody else getting into a place where risk and risk management are really valued. That's obviously got to be a very strong signal that will help us for sure. Secondly, though it's not perfect, I do think the communication among regulators has gotten a lot better through the FSOC. It's far from perfect, but that's a nice step forward. Having said that, I believe markets are prone to these moments of overshooting, manias and panics, all that sort of thing, and so I think it would be really unwise for us to say the era of financial crisis is behind us, simply not true. We're not going through a financial crisis right now, we're going through a period of pretty great volatility in markets. And I think it's impossible to say that we are, and at some point, not anytime soon, I hope, going to have some other big financial crisis. So I think we just have to be eyes open that markets are prone to these big swings. Sometimes, as we talked about with housing, the cycles overlap, and you end up getting bad situations. So we'll do the best we can, but I don't think we're ever going to be a place where we just aren't going to have that challenge again. All right, my name is Drake Bagliero. I'm a second year B.A. student at the Ford School, and as somebody who, my focus area is actually in political economy, it's been a great opportunity to be part of this conversation. Oh, great. The question that I have is for Mr. Ferguson, do you have an opinion on how a potential Fed hike in October or December might impact the market in light of the recent anticipation of reaction to the Fed's decision to not hike? Right, so this is the multi-million, I was going to say $64,000 question, this is a $64 billion question, I don't know. I actually think that when they move to doing what I think is inevitable, it will be a big relief to the markets. It will answer one of the questions that is hanging over market and market commentary. And I expect that it will probably not be as consequential as many people fear. Two reasons for that last statement. One is my suspicion is that what they were going to say around that initial hike is going to be relatively soothing and reassuring that markets are in good shape, the global economy looks like it's in reasonably good shape, the US continues to make progress, and I think they're going to say something else that will be very important, which is it's not necessarily one and done, but one and will watch as opposed to getting onto a quick elevator of 25 basis points every meeting. So the context I think is going to be relatively benign. And secondly, truth we told, moving from effectively zero to something approximately 25 basis points is hardly a tightening. The headlines will be blaring this as a tightening, but this will still be phenomenally accommodative monetary policy. And the third thing people have to really understand, in my day on the Fed, I feel now like I'm an ancient guy. Well, in my day, but not too many years ago, a few years ago, people feared getting to the zero bound. This was a place you didn't want to be. And so intellectually embracing a zero bound seems to me as though you're signaling a huge amount of anxiety, we're still in the crisis mode. And I think truth of the matter, the economy's progressed, we're moving towards full employment. And so I think the signal that we are releasing ourselves from the zero bound ought to be perceived as a relatively positive, assuming the first two conditions home. Okay, so this question is actually for my great professor here, Mr. Justin Wolfers. I have to see his bright face tomorrow also. And long, long last, give him a tough one. I know, right? What advice do you have, not as a CEO, in terms of what to give your children regarding retirement? What advice do I have to give my kids? Yes. My kids have two economists as parents. They're going to be okay. So pay attention at dinner. Pay attention at dinner. Could I reinforce this? And because I think it is pay attention to dinner, right? I know you, I don't know you're part of it very well, but if I think back on this issue of financial literacy, you know, you guys must have great conversations at home. My wife was a commissioner of the SEC, and our kids finally said, you know, we've got to go to get a degree in economics to understand what the heck you guys are talking about. And so I'm very much in this, if you've got two economists, pay attention. They will educate you or terrify you, one or the other. So I can only imagine in your house, it's a combination of education and terrifying. You're two kids are young, though. Yeah, like all of her, he's two. It's really hard to get the PowerPoint remote back from him at dinner. And he's looking going, what's the marginal benefit and the marginal cost of going to bed at this particular moment? Were you there? There may be another more serious question from the audience. All right, another question is for Roger. So how effective has the President's Council on Jobs and Competitiveness been? I would say it's best moderate, right? So if I wanted to say, boy, what a great job we did, I'd say, look at how the unemployment rate is falling surprisingly quickly to something that looks like full employment. The truth of the matter is, I think the policy ideas that we had were moderately interesting. Some of them were put in place. But I think what's really going on here, back to a point that Justin made, is monetary policy really has worked. And I'd give more credit, frankly, to monetary policy than fiscal policy and get us to a place where the economy is clearly on a path towards healing. Not to say fiscal policy hasn't played a role, but I think, and Justin made a point of view on this, if you look back over the course of financial, of both policies since the crisis, I think it's actually more likely that monetary policy was a lot more stimulative. And in fact, fiscal policy moved from stimulative to being somewhat contractionary. I think many people think relatively early in this recovery. I don't know if you would agree or disagree on that. I agree wholeheartedly. All right. So, how should students approach retirement while paying back student loans? How do you keep the balance? Better to pay loans faster or gain savings? So my view is the answer is yes. So what does that mean? What it means is, for those of you who have loans, obviously the first thing to do is to continue to service that debt and pay it off. I was talking to Susan before this, and I think we also, as a society, have to understand the realities of where the student loan situation is. It probably doesn't affect most of the folks in this room as much as it does others. So in this room, I'd say, you're probably gonna be in a position where you can continue to service your debt. The vast majority of you, if you do that, will be out of debt relatively quickly compared to other people, and then it's really time to turn towards saving and investing and planning toward the future. So plan to do both, sequence them properly, and recognize in some ways, unless Susan or Justin tells me otherwise, that I suspect the vast majority of the graduates from the Ford School of Immuneracy in Michigan are not the ones who are the heavily indebted ones that we have to worry about, and you guys are all gonna get great jobs, serve your, service your debt, and then go on to start saving at an early age for retirement. All right, this question actually comes to us from Twitter, and it says, so now, 14 years later, are there any decisions you made in the days and months after 9-11 that you could change if you would go back? Oh, interesting. No one's ever asked the 9-11 question that way. I'm gonna say something that sounds not very thoughtful, but I guess, given that things worked out reasonably well, and in fact, better than I could imagine at 10 o'clock on 9-11 of 2001, I'm not sure I'd change anything, right? I mean, it looks to me in hindsight, 14 years later, that we did most of the right things. I guess that's really what I think about it. So if you think about what we did, the biggest concern that I had, slash we had at that time, was absence of liquidity leading to a crisis of confidence. And so for those who know anything about this, we flooded the system with all sorts of liquidity. Currency for Manhattan, 47 billion dollars of check float that we honored, multiples of that for interbank float of one sort or another. And I think all those things worked quite well. I think what we did internationally, perhaps we could have done a bit more, but I think that worked out. So when I look back on 9-11, it worked as well as anyone could have expected given the shock to the system. I think the one thing that maybe one might have thought about was would it have been possible to get markets opened more quickly? And I don't think we had the technical capability of doing that much more quickly. So I'd say by and large, looking back on 9-11, I think we did most things right and it wasn't because it was all planned or anything, but I think a number of good decisions were made and I wouldn't have changed any of them. Roger, let's explore that a little more. It's like, it's a fascinating moment, right? So 9-11 happens and Roger's, you were Vice Chair at the time. I was Vice Chair at the time. You were Vice Chair at the time and every other Federal Reserve governor was traveling and therefore no one could get hold of them. Right. I know what it's like to be an economist. You go to school, you solve problem sets, you learn how to invert a matrix, all this sort of stuff. How exciting. Yeah, but none of that prepares you for that moment. And so there's some point at which this is about leadership. Where did that come from? How did you learn it? What did that moment involve? Okay, so let me talk about leadership in that context and let me start with the more technical and then go to the bigger. So the Fed does a huge number of things. The thing that people are most excited about is monetary policy and the 25 basis points and all of that. In no way will I denigrate or downplay that as being incredibly important. The other things the Fed does though are at some point equally important, particularly during a crisis moment. So we talked about one on which is banking supervision and regulation and that came to play on 9-11. The other thing the Fed does that most folks don't know and fortunately don't need to know is the Fed is a chief operator of the payment system for the United States. That's everything from clearing checks, if you still write checks and some of the older people in the room probably do, doing that overnight, clearing checks to making sure that when J.P. Morgan Chase owes $200 million to city group to close some big transaction or $2 billion to close the transaction, that money moves seamlessly overnight through what's called a large value payment system. Don't need to know that lingo. So I think I'm, I don't know history, I can't say that's true, but during my tenure, not only was I a voting member of the FOMC obviously, but I was also a responsible supervision regulation. I was responsible for the oversight of the reserve banks and I was the chair of the Payment System Policy Committee which got me deep into the bowels of how the system works. You were the financial plumber. I was the financial plumber or at least oversaw what the plumbers were doing. And so one of the elements of leadership that I always talk about is you have to have some technical skill. On the day of 9-11 it turned out that monetary policy wasn't the pivotal thing. It became so on the 17th. It was more about the financial plumbing and the way banks operate. So someone had to understand that we were flying checks around at night and what happens if we didn't. Someone had to understand what it meant to charge or not charge a daylight or an overnight overdraft fee to a bank. So the technical things, that's some of the stuff I had invested my time in. The other thing I had done which people all chuckle about, but I was responsible getting the Fed and more broadly the US and to some degree the global banking system ready for the big thing that didn't happen which was Y2K. That got me spending a lot of time thinking about the systems that underlay the financial plumbing. And we put into place around 9-11 a number of redundancy systems in the Fed that came the four or two years later on 9-11. So part of leadership is technical knowledge which fortunately I had because I had spent a fair amount of my time in the plumbing side of the system. Some of the leadership is about being clear on where you're going and what you want people to do. And so I decided that I was not going to evacuate the building. I couldn't lock the door so anyone was free to leave but I was going to stay. And fortunately for me and for the country, thousands of people decided to stay with me and I always get a little choked up around that. I've heard Fed staffers say that they decided to stay but were told to stay away from the walls. That is true actually. We moved things into the core of the building because we didn't know what was going to happen. So the second part of leadership is sort of saying here's what we're going to do and being quite clear about the direction. The third is to show some bravery, frankly. I describe it as fortitude but people don't want to follow a leader who seems to get shaken at the moment of crisis and here was a moment of crisis. So I thought it was pretty important to be quite clear about my own fortitude and to encourage others to do the same. So we had quite a discussion around issuing this simple statement that Fed is open and operating and we were prepared to provide liquidity. Everybody was sort of comfortable the second half. I had quite a conversation with a lot of Reserve Bank presidents about why not the system was going to be open and operating and at some point it became sort of more hierarchical and made that decision. And the final point is you really have to be sort of empathetic. So this issue about, look, make yourselves as safe as you can, get away from the windows. We relocated folks to the core of the building. And so what I'm trying to say is leadership has elements of expertise, some sense of vision, direction, clarity of purpose, a certain amount of fortitude and a certain amount of empathy and all those things sort of came to play around 9-11 and then there was an awful lot of, I guess the word now is blank. It was sort of making quick decisions without information which the Fed is not very comfortable doing.  And at some point you have to decide. And so that was another element of leadership here. So anyway, this conversation went to a very different place, but we did. So that's the 9-11 answer. Anything else? So another question we received is how is TIA doing, how are they reaching out to younger generations? And then also how is TIA competing with for-profit companies such as Fidelity? Okay. So we're working hard on both of those things. First, for the younger generations, you have to be mindful that I can't reach out, we can't reach out to a millennial and say, let's talk about retirement because the other issues come into play. And so we are trying to put what we do into a broader context of financial security. More importantly, we've done a lot of surveys of millennials and the language is not so much around saving as for the purpose of savings, but seems much about freedom of choice, ability to make movements when you want to, et cetera. So we are trying to learn the right set of language, trying to frame the issues appropriately. We also are working very hard to have millennials talking to each other.  And in no sense are we aggressively marking a company because what we've heard from millennials is we don't want to be sold. We're prepared to buy once we're convinced but we don't want to be sold. So those are some of the things that we're doing and well aware they have to do a lot more of it because all of us aging baby boomers are gonna leave about $30 trillion to millennials and so we have to get people really prepared for that. How are we competing? We're competing by emphasizing our strengths and values and what makes us different. So I'm not for profit heritage. The fact that we are not publicly traded we're more like a mutual. And the fact that we clearly put our participants' interests first. And 90 plus percent of the people who have worked with us check the box that we clearly put individuals' interests first. And frankly the final thing we're doing is we're recognizing that a lot of regulatory changes that our competitors are opposed to and we look at those as being potentially net positive. So you probably haven't noticed this. Maybe you have at the Ford School there's this new regulation of our fiduciary responsibility that's being promulgated or recommended, proposed as a right phrase by the Department of Labor. A lot of the industry is strongly opposed to it. We look at that and say there are a lot of good things about it. There are places to be fixed. So we are working with regulators to try to actually create a regulatory environment that we think is better for everybody and that would be better for us. Roger, can you explain that issue a little more? It's a really fascinating point. Fiduciary duty? All right, so the issue is when it comes to selling financial products does the advisor that is in the process of, I'll use the word selling those products have an obligation to put the consumer's interests first to be a fiduciary or not. And the line of fiduciary versus not fiduciary is really sort of unclear. So an example is when one of our worthy competitors goes to somebody who's one of our participants and says it's time for you to roll over that money from where you've been saving it into this IRA, do they have to tell you the expenses in the IRA may be higher, all the products in the IRA may be proprietary to that company and that their compensation may depend on getting you to roll over your money out of a low-cost, low-fee retirement plan into a more high-cost IRA. So that's an example of what a fiduciary has to disclose versus not. And so the law now, the challenge now is when is someone selling a product have to stand in the role of a fiduciary putting your interests first, making the right sets of disclosures or when don't they? And that is where the debate is being drawn. One of the elements in this proposed reg will in fact force this issue around the rollovers to be governed by this fiduciary standard and may well slow down the financial services firms whose business has been to get people to roll entire A's. And if you notice it, this is a little more nuanced but if you notice what's going on on TV advertising now around IRAs, you'll hear a lot of language such as this might be the right thing for you to decide whether that this is in your interest. So already the advertising around this aggressive rollover industry is starting to reflect the fact that we have to put, everyone has to put the fiduciary interest of the consumer ahead. Is that roughly sensible? Like if my father-in-law walks into his financial advisor's office, he's not necessarily gonna get good advice for him. There are levels so that he will have to get advice that is described, products that are suitable for him. So if your father-in-law is 95 years old or 85 years old or 75 years old, he's probably not, the law will not allow an advisor to say buy this high flying penny stock that could either do incredibly well or collapse. So there's a suitability standard that already exists. The question is, do you have to put his interest first in a fiduciary standard and therefore disclose him all of the fees and other things and how do you have to disclose that and how far do you have to go in educating him about those things and that's where the line is moving back and forth. So you cannot have misselling, you can't have people selling things that are not suitable, but the question is, to what degree do you have to disclose all the bells and whistles and to what degree can you encourage or not once all that has been disclosed. So it gets a little fuzzy for sure, but the main goal is to frankly raise the hurdle so that we, as an industry, we never do this, but others do. We make sure that people aren't rolling out of one set of products and another set of products that are arguably suitable, but may not be as good for that individual. That makes sense. Okay. You have any more out there? It's actually not out there, it's up here. All right. So this question reads, that it seems that the Fed has been eager to raise rates in the past few weeks despite indicators like inflation showing it's not to. Is the Fed being too heavily influenced by banks and the market? Oh, no, I don't think the Fed is being too heavily influenced by banks and markets. I think what's going on is they have two objectives. I'm gonna, you students will get these words if you've had Justin's class, others. So the Fed's challenged that they have two objectives and one tool, if I can say that. So they're supposed to create low and stable inflation and they define that as an inflation of around 2%, and they're supposed to create maximum sustainable employment or full employment that is not overheated, so it's not inflationary. So what's going on is they're, and by the way, they started the place where they've embraced this sort of emergency low level of interest rates. So what the Fed is struggling with is, okay, the unemployment rate has come down to something that looks like it's pretty much full employment around 5.1%. They thought by their forecast that was gonna happen 18 months from now. So they already have achieved that goal. But inflation continues to be very, very subdued. The dollar is rallying, increasing in value, which is likely to put downward pressure on inflation. And so they aren't so sure of their inflation forecasts. Is inflation likely to get close to 2% at a reasonable timeframe, and therefore it's important to raise rates now or not? So the reason that the Fed has been in this push me, pull you, stop, start, mode, and it's having a little bit of difficulty communicating clearly, is that the data are somewhat internally contradictory, and so there's no clarity of what to do. And in that moment when we have a committee, right now I think it's 10 voting members, the ability to get everyone consensed, which is not a word, but reaching consensus, is very, very tough. So I don't think the Fed's being pushed by banks or anyone else. I think they are struggling with data that are somewhat inconsistent, starting at a really unusual place historically, and trying mightily to reach a consensus, and frankly because they're relatively transparent, sort of doing that in the public way. So you get one person making one speech and another person making another, and that I think has proven to be a bit of the source of the challenge. They're not sure what to do, and they're not quite sure what to say, and that's a pretty tough place for a regulatory body or a policy-making body to be in a democracy. Okay. All right, so this is the last question that we have time for. The question comes from Twitter. Since 2014 or the first quarter, the Fed funds rate has edged up within the target range. Is this the Fed slowly tightening before a right hike? So the answer is no, I think what this is, is markets reflecting just the point I was making, which everyone knows a Fed wants to increase rates, and so money market participants, or market participants, the way Justin's class would expect him to do, are anticipating, they're reading the data and they're saying, ah, unemployment rate keeps coming down, Fed's likely to tighten, I wanna move before then, and so people in markets are unwilling to lend money at rates that they think are not gonna be sustainable, which is why rates are sort of gradually rising. I don't think it's the Fed doing anything per se, except interacting with markets and trying to keep the rate at the target, but it's a very hard thing to do when it's obvious that rates are gonna rise because no one wants to be on the wrong side of an inevitable move in monetary policy. Is that okay? Is that okay? What about the idea that the job is to set interest rates, it must be how to keep not doing it every week, right? Ha ha ha ha ha ha ha ha! Ha ha ha ha ha ha ha ha ha! You Australians are so witty.  I've never thought about it that way. To be more serious to the serious under the question, under the question, it is very hard to keep rates at any level that seems in the minds of market participants to be inconsistent with the real data. And that's a little bit of why these rates are rising, because it is, and this would be true at any rate, but particularly true at a historically low rate. And so, yes, to some degree, it is really hard to use the limited number of tools that they have to do something that the market is saying is not sustainable. If they were to come out and say, we do not intend to raise rates for the next long period of time, then it becomes a lot easier to keep rates down. This is one of the things that Benanke used so well, and we did it in my period, but he did it a lot better, using an ability to set expectations in order to really anchor rates. And right now, what they've done is they've allowed market expectations to become a little unhinged, and therefore it's harder for them to actually set rates. Does that make sense?  I was just gonna share one with you. So it turns out, interest rates now have been zero for six years and nine months. And I know that, because I have a daughter, she's now this tall, she's six years old, and the Fed cut interest rates to zero exactly nine months before that, so. So what, do you wanna tell us more, Justin? This is why we call it a Stimulative Monetary Policy. Thank you very much. But not seriously, right? You've come an enormous amount of space here, and we're all incredibly grateful to you for sharing that with us. So thank you very much. Thank you very much, Justin. That was very funny. Justin Walters, thank you so much. It was a terrific, that was a terrific conversation. We all learned a lot and we all enjoyed it. I would also like to thank all of you on behalf of the Ford School and CEW for joining us, and for a great set of questions as well. I invite you to stay and continue the conversation just outside the hussy room, which is on the second floor, and there are staff who will help direct you in the right place, so we can continue the conversation over some refreshment. Thanks again for joining us. Please join me in a final round of thanks to our guests. It's great.


Hey guys, we are going to do the second to last Video here for the kids art drawing series and then we're going to move on to some painting So we stopped our drawing at door So we are going to do the next three prompts Line arrow and circles So let's have some fun with that shall we? I hope as we get started with This video that y'all have done your homework and that you've done your chores And that you're minding mom and dad. See I need a pen here we go. Okay, so And that you're doing all of that before you get started with your art Let's see line L-i-n-e arrow A-r-r-o-w. I hope my spelling is not the best C-i-r-c-l-e-s circles Now going back to our first word which is line. There's a lot of different ways that you could Take the word line and make a drawing from that and I want you to Feel free to Draw the first thing that comes to mind that you're inspired to draw for me I think what comes to mind for me is a bunch of people or Creatures standing in line waiting in line If you've been to the shops with your one one or both of your parents lately, you know There's a lot of time spending waiting in line, right? So what if we drew a line of feet of people? So what if we drew some feet Because they're all standing in line So I'm just drawing this funny squiggly shape For the base of the foot and then I'm doing some circles for toes Yes humans have five toes These only have four but you get the idea so do this kind of squiggly funny shape Then do another one and then do some circles for toes You could do animal feet and you could do paws more like Okay, see what I'm doing. Okay, so something more like like a dog's paw like that and they would have four and You know, so maybe it's a cat maybe it would have Claws some of them would have four there So you could do it, you know, you could make up an animal but do some feet in a line and Then I'm going to color my feet. What color am I gonna make my feet? I Kind of want to make a purple and I kind of want to put like a sign That says start here with a little arrow Yeah, reminds you of standing in line at the stores right now, right?  So that's that's what I get when I see the word line What do you get? I would love you could just do a Drawing of a page of different colors and shapes and sizes of lines Do what it feels right to you and I would love to see where you go with that. All right next arrow Arrows are fun arrows are easy. So I want you to start with a straight line Then on one end of the line, I want you to draw a triangle on the other end of the line I want you to do some shapes That sort of look like funny-shaped rectangles coming off of The other end of the straight line and then do like at least two on one side And then on the other side in the same space do two more like that and Then the fun thing to do is to do another arrow This time have it going the other direction You'll notice I do if you haven't noticed but before now I usually do Go over my lines twice. I Intentionally have them be messy. I like the messy sketchy look of my drawings So for me, I don't want it to be perfect. I want it to be messy like that Then of course we can color it. We can use some of our markers. Let's use the blue one These are again the Crayola metallic markers. So they're water soluble. So we've got our Paint brush next to us. You of course can use as we've said before Just a q-tip and a cup of water if that's what you have use what you have You don't need special tools to make art and this is just a regular black pen Mom and dad probably have one like it in their office Or in the kitchen junk drawer do be careful about asking permission to use their stuff Don't just go grab it. Maybe they want to do some drawings with you. You never know Okay, so let's color the other one So put the ink down there and then we're gonna blend it with a brush And I'm not being super careful about how messy it is because again as we've said I like the messy look So arrows, how cute is that? Now if you're a kid who's handy with computers some of these would be cute scanned Into a computer and you could print them onto like a little note to your friends If you have permission to use a computer again use it with permission Okay, we're gonna move our little board here that we're using as a hard surface. We're gonna turn the page Circles circles are fun circles are easy, but circles are really hard to draw and be perfect at So you could of course take something like I have a spool of thread handy and you could trace around that And to do perfect circles. I find it more fun to just draw circles. So They're not gonna be perfect.   That's important And then you have time for art We are going to be back in the next video with the final three prompts and then we'll move on to some painting For none of this. Do you need special tools or supplies? Use what you have. I'll give you options of what you can do always of course as I've said do it with mom and dad's permission and mind them and mind What they're saying and do your schoolwork stay safe Stay healthy stay creative Don't forget to like share and subscribe if you can and go out and do something nice for yourself Because you deserve it the link for all of the words the download for all of the words is in the description below And I will make sure it's there If you are just now seeing this video and you haven't seen it from day one The playlist will be also linked in the description below so go check it out And that's it for today go out and do something nice for yourself because you deserve it. See you later. Bye guys


Now, what is a highlight highlight are stories that are permanently embedded on your Instagram profile, saved under something called highlights. And as you can see here, these are the different types of highlights, basically their categories of content that you can actually save. So then that way people can click into them and they can see what you have to offer them and basically information that you're sharing with them. Now the four common types of highlights, product detail, which includes your menu, your pricing and your recipe. And as you can see here, so when people click into the how to order, this would pop up. When people click on this, this would pop up. When people click on the other highlights, this would pop up. So as you can see here, there's a lot of information that we can share with our customers when they land on our page and when they click on their highlights. So as you can see here, once they click onto this, these are the different stories that would pop up. Just images that would pop up all the time and it's permanently embedded into our profile. The different flavors. Operations is also another key highlight that you can create for your Instagram profile. For example, how to order the instructions to pick up, instructions for delivery, FAQ. Now next up branding behind the scenes would be another very good highlight that you can have milestones, holiday updates and your team. So sharing information on all these items would be a great way for you to brand your Instagram profile and to answer questions that your customers may have on your brand.  Now, why is it important that we pay attention to the highlights? First up because it answers your potential's customers' questions. Once again, I always come back to this. If you don't answer your customers' questions in a very clear and concise manner, they will scroll away because you only have two seconds to answer that question and you need to provide everything that they're looking for in a very short period of time. It allows you as a brand to create and showcase the content that your customers want to see. For example, if you do not create these content, if you don't categorize it properly, you just allow your customers to scroll and do the stalking. A lot of times they are just clueless and it just makes it very difficult for them to do so. And once again, you are going to lose your customer. And lastly, it allows you to categorize your content for a much better customer experience. For example, if I already love your brand and I want to learn more about you and your team and you have that highlight on your Instagram profile, automatically it gives me as a consumer a very, very good and easy way to navigate and to learn more about you. But if you don't have that highlight, then it's very difficult for me to scroll through your website, go through your Instagram posts and we read like dozens of different posts just to understand more about you. That's the reason why having this highlight section is so powerful for your food brand. Now the four steps in creating your highlights, now how do you even create it? Now you know the importance. We need to create the cover as you can see here. These are the covers for the highlights. It shows up as orange, green, pink and this is all customizable. You can actually do whatever you want in this little circle. Now we need to create five different categories. As you can see here, how to order, pick up delivery, recipe, bubble kit and tag us. And these are all customizable as well. You can create any categories that you would want. Now that we created these assets, we're going to upload the cover onto Instagram. We're going to teach you and show you how to put that image on here. And then lastly, we're going to show you how to update all the different content and categorize it within each of these individual highlights. Now the first step is to create the highlight cover for the five different categories. And we're going to be creating categories for how to order, pick up the delivery, recipe and your product and tag us. Okay, these are the five covers that I recommend you to go and create for your food brand. Now you can add additional categories as you wish. Some other examples would be about us, behind the scenes, mission values team, why, and the list goes on. It really depends on what you like and what you enjoy and it's a preference thing. But for this specific lesson, we're going to teach you on how to create covers for these five categories. Use Canva.com. It is a free tool that allows you to create this item.  And it allows you to create that cover completely for free. And it has the proper dimensions, so you don't even need to know the dimensions.  Then you're going to have the perfect template created already for you. And if you want to make it even look more professional, you can actually go on FlatIcon.com and allows you to find free icons like these. And all you have to do is just download this image and upload it back on Canva. So then that way you can have a very professional looking highlight cover, right? So some of the common icons that we type in to find would be Courier, Pickup Truck, Clock, Utensils, etc. So be creative with this whole process, right? Follow this tutorial if you need more information. Right here, that's the link on how you can create the highlight covers for your five different categories. I've included a lot more resources just in case this lesson is a little bit too fast for you. I don't want to go into too much detail because it just loses that experience for you. As an example, this is what we have created as highlight covers for the case study we created Bulbasaur. Our Bulba Kit, Pickup and Delivery, Recipe and How to Order. Now that we've created that cover, it's time to create content for our categories. For each of the categories, make sure you have screenshots, photos and different messages that fall within each of these categories. And once again, you can use Canva to build out your message and the content for each of these categories. And what I mean by that, it means that, for example, if I want people to have information and to tell people how they can do pickup and how delivery works, then for each slide or each image, we tell them exactly how to do that. So, for example, right here, we offer free pickup. What's the location? What's the time? How are they going to get access? And this provides content for customers to know one slide. Second slide, Delivery and then Delivery Pricing. So as you can see here, we just break it down in different content into very sequential manner. So then that way it's simple and it's easy for customers to see this because if we combine all three items into one image, then it becomes very difficult and messy and very heavy loaded for our customers to receive. And that's the reason why we break it down in sequential and simple manners to give our customers information. Definitely, if you want to check out more, check out at Bulbasaur.yvr as an example of how you can start creating content for your different categories. Now that you have created your cover, now that you have created content for your Instagram highlight, it is time to upload them onto Instagram. So how do you upload them? Upload the cover first, okay? So once you're in your Instagram profile, click on the top button plus sign, okay? And by the time that you're watching this, this interface might have changed. So at the end of the day, we're looking for this plus sign. For now, it is on the top right on your homepage. Next up, once you click on the plus, then you select the story. Scroll left or right until you find story section, okay? You're going to see this camera mode. And then what you do is you're going to scroll up with your thumb to open up your camera rule once you're in the story section. Once you scroll up, then you're going to be able to select your first cover image. And this image can be added, click on send to as your Instagram story. So you added this as your Instagram story. Now we want to add it to our highlight and create that category. How do we do that? Then go back and view your story. And once you review your story, you're going to be able to click on this highlight icon in the bottom right of the screen. Once you click on this highlight icon, then you can click on plus in this new highlight section, click on it. And then you can fill in the category name. And for us, we want to fill in how to order.  You've just uploaded your cover and created your category of highlight. Do this for the rest of the categories that you've created. So then that way this would automatically generate. These buttons would stay on your Instagram profile as you create each of these categories. Now that you have uploaded your cover, it is time to upload content into these different categories. Same thing. Go back on your home screen, click on the add button and then click on story. You'll see this camera mode, scroll up. And then once you scroll up, click on this button right here, select multiple because you want to be able to select multiple images to add to your categories. Okay. Click on multiple and then select all the relevant information or images that are supposed to go into that specific category. We're talking about one category right now. Okay. So select all the different images that you would want to add into that one category. Right. All images will now click on next. Now you're going to be able to add all those images to your story. Now go back to your profile, click on the highlight that you want to add the content to. So for example, the images that we added to our story are basically all about pickup and delivery. Now we want to click on the category right here. Once you click on it on the bottom right, there is a icon that has more click on it and then click on edit highlight and select the stories that you want to add to this specific highlight. Once you select it, then you're done. Now you can repeat this process for the rest of the categories in order for you to add content into each of these highlight categories. Now a pro tip for you is that if you want more in depth tutorials on how to do this, click on the link right here and the link right there. Now it is your turn to create your highlight covers and Instagram highlight stories using Canva. I've located a ton of resources for you. So then that way you can use it for your creation. I hope you enjoyed this video. I'll see you guys in the next lesson.


All eyes were on British billionaire Richard Branson as he sailed more than 50 miles above the New Mexico desert in his Virgin Galactic rocket plane in a daring fate. He made a set return in the vehicle's first fully crewed test flight to space. The success of the flight also gives the entrepreneur a bragging right in a highly publicized rivalry with fellow billionaire Jeff Bezos. Bezos had hoped to fly into space first aboard his own space company's rocket. Sanders' launch of the VSS Unity passenger rocket plane marked the Virgin Galactic 22nd test flight of its SpaceShip 2 system, but it's the fourth crewed mission beyond Earth's atmosphere. The launch of the VSS Unity passenger rocket plane marked the first flight of its SpaceShip 2 system, and it's the fourth crewed mission beyond Earth's atmosphere.


If you are out there to experience sexuality with different people, you are also out there absorbing energies of different people into your system. And when you do that, it can corrupt the system. And don't mean corrupt it in a conceptual sense, but energetically. You can be... It's also a dangerous game to play sometimes, because women are very, very powerful. When a woman curses a man, basically he's doomed. And it's also true. You'll see a lot of men, when men are not careful how they treat their women, they can be so badly impacted in their work, in their sense of worth, by a woman's silent curse. It's not worth attracting that.


Did you know that you can duplicate any Zonai device you want in Tears of the Kingdom and it's really easy. Step 1, think of a Zonai device you want to duplicate. Step 2, walk up to a wall. Step 3, select one Zonai device of your choice. You can select up to 10 of that one Zonai item. Step 4, press the Y and B button at the exact same time. You should see a quick lag and then the Zonai device you selected will fall on the ground. When you open up your Zonai devices menu, you'll see that none of it has decreased in the amount in the menu. This is going to help a lot with people who love building insane devices using auto build and you can use it to make a ton of rockets that you can fuse to your shield because who doesn't love rocket shields? Subscribe because the next glitch is going to be even crazier.


size 51 okay others it was zero you know it is one should I do it energy of the photon is what hc by lambda this is equal to the energy of the proton sorry counting edge of the proton let's that be e p okay fine so now energy of the photon is e so this is e only lambda 1 is deeply wavelength of proton so lambda 1 should be h by momentum which is what to mass of proton into e and in doubt now this is deeply wavelength of the proton and wavelength lambda 2 lambda 2 is what which is what see by e so from here you can get okay now lambda 1 divided by lambda 2 it will come out to be proportional to e to the power half right option 2 is correct okay it out all right so let's move to next one this we'll take a small break after this when you guys will be taking mock test which I've shared today how many will you take tomorrow so many okay let's see are you guys learn those who are taking mock test regularly are you guys learning anything new see we can do that we can do that okay so we have limited amount of time so I'm trying to optimize that suppose you have let's say 100 rupees so how you spend that same thing right so in case you have doubts where you have written a mock test we already spent three hours you know struggling with those questions you look at the solution you don't get few of them so there'll be I think hardly four or five questions like that you in which you have a doubt you can always post that on the group you already spent three hours with it and a class also goes in discussing those 30 questions that will be I think so to say a waste of some useful time which we can use to solve this past then I want to do this right so we need to optimize everything so that is another reason why I was planning to have life classes so that you know other best students also comes in then rather than doing same thing different places then we'll have only one class per week so if I have it online if it is just problem-solving then we can meet multiple times in a week we can do many many things otherwise just once in a week and there right now just couple of weeks are left anyways what is the answer for 52nd tell me frequency of a is it same as be see this stopping potential is same right that is a frequency of a will be able to frequency of B now stopping potential of C is more than A and B so frequency of C should be more okay frequency which is creating C stream will be more because finding a G maximum is more for C okay so look at option 1 frequency of a frequency of B that we have already and is not able to see so this is out of question this is out of question now between these two the only difference is in densities are same or different this is a different one photon per electron if you go by that logic then option one is correct okay fine so we'll take a small break and we'll meet after that