Starwood Capital CEO Barry Sternlicht: Labor force 'structurally hard' to kill with interest rates

[@tabtn6844]

He is whinning because he runs overleveraged REITs that are highly sensitive to interest rate.

[@mogulrider]

Man this guy's business and people like his are dying in front of our eyes.

[@bmwlane8834]

Good...greedy developers

[@tmclean9]

Not really. If you follow Barry, Starwood hands back properties to lenders the same day they raise money to buy similar properties. Bankers and Barry always make money.

[@jobunaga4178]

SURPRISE, SURPRISE! the guy whose business is completely dependent on debt financed commercial real estate forecasts a scenario where the fed should pause rate hikes, if not cut rate. need a boulder sized grain of salt with this one.

[@gavmoeller]

Most of starwoods income actually comes from lending not properties so they actually benefit from rising rates as 90+% of their lending is floating rate

[@jobunaga4178]

@@gavmoeller you don't benefit from high interest rates as a lender if commercial real estate defaults on their loans.

[@thomas927]

@@jobunaga4178 yea, Starwood still does, they're amazing at turning their REO assets into a profit

[@weirdshibainu]

Nevada just passed a 12% pay raise for State Workers. Interest rates will have no impact on them, but it'll affect te private industry.

[@elmasbuscado909]

12 percent is nothing

[@weirdshibainu]

@@elmasbuscado909 It is when its across thousands against a budget.

[@juliovalencia4948]

@@weirdshibainu the city of San diego just got a 30 percent raise

[@weirdshibainu]

@@juliovalencia4948 That's a city. Do some math.

[@azuresage1067]

@@weirdshibainuwhen was the last raise?

[@AllAroundHnadyMan]

Excellent presentation and overall view of what’s going on with the economy. Good point of view with data on what the federal reserve is doing. I want this guy to manage my money.

[@GTRrocker84]

I don’t trust any of these sociopaths. They only care about what’s best for them.

[@louisstevens6779]

Imagine running an economic system where, in order to quell inflation, we need to destroy livelihoods. That is the most asinine thing I've ever heard. We can do *vastly better* in operating our financial system

[@ColourRevolution666]

Powell is an old guy, and satan needs new friends. By rasing rates it will destroy livelihoods and peoples savings, which are worth their times and lives, thus similarly to killing millions of people if you count all the time and work they put into earning all the money. Satan can not get all people to hell, but few people in position of power he can and will try his best.

[@Bk-qz3yk]

The government is public enemy number 1

[@hdlam1]

Free market economy

[@AH-fm7rj]

I bet he has tons debt which has to be refinance soon.

[@mesutserim1595]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio

[@chrisbluebird5037]

@friederichkuhn8300 I agree, before the pandemic got real serious, I used to handle all my investment and I was pretty good at it, fast forward to post-pandemic and my-portfolio is steady in the red with profit rate down to the lowest, that's when I touched-base with a coach I saw featured on businessweek, who restructured my portfolio and over the last couple years, I've made over $850k from initially $210K

[@chrisbluebird5037]

@javiermunoz990 My advisor is "Nadine Julia Allevato" You can easily look her up, she has years of financial market experience.

[@miawhitlock9140]

@@chrisbluebird5037 I just looked up Nadine Julia Allevato online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.

[@sbar39]

Barry's calling on the Name of the most high and asking for grace and mercy 🙏

[@JoeDurbs]

Why is he not talking about price control by the manufacturing and petroleum companies . We need more capitalism competition among companies

[@maicolc7216]

This guy is brilliant. Where can I see more of Sternlicht?

[@pjcanseco2590]

I agree, he is very, very good at what he does. I always listen whenever I get to hear him speak. He comes on the show only a few times a year, it seems like.

[@thunderb00m]

Down by the river if things go according to jpows plan. Hope he loses everything.

[@JMoney-ne3to]

You should have followed his lead in Sept 2022! 😂 BRILLIANT

[@Madmun357]

Commercial real estate is hurting because buildings are sitting unused while workers still work from home.

[@Juliamey]

The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[@trane85]

Yes, truly, investing in the market, even if it's just the S&P 500, can keep up with inflation, because the growth rate of stocks will always exceed the inflation rate. But if you don't have the courage, you could just invest with a financial advisor, which even has greater return on investments, while securing your investment against losses.

[@gary803]

Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!

[@MikeyyyS]

@@gary803 I've been skeptical about the banks for a long time, to be honest, but didn't know how to get started with an advisor. If it's okay, can I know who your advisor is, because I need some recommendations?

[@gary803]

I'd recommend Colleen Rose Mccaffery. She is a genius when it comes to diversifying her holdings. You can verify her identity for yourself by looking her up online. She is well knowledgeable about the financial markets.

[@MikeyyyS]

@@gary803 Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it

[@MPK1881]

What is he talking about? My rent has increased a lot. With this rate of inflation, more people need to live on the road sides. There is a reason why FED is looking at the lagged housing numbers. FED is doing good and they have raise that rates to another 2% more to curb the inflation once for all. Otherwise, we keep discussing about increasing housing prices & cryptos in pubs and on lunch tables.

[@Marva123]

Barry laid out the entire dilemma. Basically, the FED will have to lower rates in the short term.

[@TheAmos1]

it's about inflation not the labor force when profits have been record high over a decade

[@Hiwinders]

Charging is easy… Period. I have been driving an EV since 2014. Once you put in an outlet in your garage then you charge overnight when power is super cheap and wake up every morning with a full tank. It is magical! I used these same car for long multi-state road trips and yes that does take more time than filling up with gas. But really gas stations are disgusting. If I never go to another gas stations that will be awesome. If you live in a condo or apartment then charging will be a bigger challenge. So I am a realist… Not everyone will be driving an EV. The transition will take longer than people think. I still want a corvette that is all EV and not the hybrid oddball that Chevrolet has created.

[@LumosMx]

You have an intelligent guest, please stop interrupting him.

[@DrewskiOne]

Great stuff, Barry

[@info781]

We need high interest rates to slow down real estate, the Federal reserve has fixed that issue now.

[@cinemaipswich4636]

Why would the Fed interest rates go down, when unemployment goes up? There are labor shortages everywhere, because immigration is very low. Wages only form a small part of corporations cost.

[@nathanhayhurst3212]

80 year old men, should never quote thier thesis in College.

[@KungPowEnterFist]

Hey, its this guy! I love seeing him on the channel, because he is getting absolutely destroyed in this market. So much fun to watch. Did he bring any fake charts with him this time? 🤣🤣🤣

[@joseballite1666]

Haha true that’s hilarious, but quick question - are you worth 4.6 billion dollars?

[@KungPowEnterFist]

@@joseballite1666 What makes you think he is worth $4.6B? 🤣🤣🤣

[@joseballite1666]

@@KungPowEnterFist that’s a bad question but I’ll offer some help: google “Barry Sternlicht net worth”

[@letsdanceonhere]

Stemplicht is right on.

[@markhirstwood4190]

Barry just keeps talking, no stopping him, anchors can't get a word in edge-wise. Good info though, he's sharp. Becky's still so hot... I think housing's going to lose 95% of its value.

[@Fellowtellurian]

Wage growth down to slow inflation is wage imprisonment. Tax the rich and corporations to slow spending.

[@davewang2436]

fix should be automation or immigration or both for the labor market.

[@bmwlane8834]

Dude lives on debt....yea he hates this.....he didn't complain on the way down to free money.

[@iamric23]

Joe kernan just is not interested. Unless he is the one talking he wants nothing to do with it.

[@bingebinge3722]

J Powell lives in a totally different dimension from the service sector but the whole world is hoping him can fix it, and the interest rate is the only tool he has. Great...

[@dougmanzo9648]

They got to keep hammering government spending that’s why inflation is so high

[@kitana097]

It all has to do with liquidity. Central banks around the world are pumping liquidity and it will seep into the US market.

[@blessedspear2642]

Something seems off about Sternlicht

[@jaygold4467]

Yes, hospitality has no slave wage workers!

[@oneshot2g]

Leisure jobs aren't exactly high wage jobs.

[@zhuang1694]

of course interest affects government spending - at least the interest they pay on bonds!

[@sunrizen]

Median existing home prices are up 9.66% since January. Rents will likely follow. I don't think shelter inflation, the main component of core inflation, is coming down anymore.

[@AnotherAmerican91]

Meh Jerome can hike a few more times and things will break eventually.

[@hdlam1]

He's only vocal, because his money is on the line. He wouldn't complain if the Fed comes to bail his industry.

[@sivakrishnat5471]

He leveraged low interest rates. Now he is screwed.

[@UziGameGP]

He's a billionaire I'm sure he's fine lil buddy

[@artwha0]

@@UziGameGPbut his company might not be. These kinds of guys aren’t worried about their bank accounts, they want their companies to grow

[@UziGameGP]

@darkchildwhat1 oh his company will be doing fine, don't you worry. Focus on your own amazing job.

[@jaym9846]

Inflation for the poor. Inflated stock prices for the rich. FED's job is done.

[@777jones]

I guess his argument is that he isn’t sophisticated enough or prudent enough to withstand midrange interest rates. So? Why should I care?

[@24theMoney]

Hey Barry, what's up with $CANO? Massive % for withhold for 2 directors, but they have been re-elected. LOL. Barry gonna drop the hammer on Marlow CEO.

[@Fellowtellurian]

Government spending is targeting much needed and delayed spending on climate change mitigation and infrastructure. How can one money you say consumer spending is causing inflation while the next you say it is government spending that is causing inflation. Which is it? Who should we starve, the people so they stop spending or government programs so we fail to meet our obligations to future generations? Your eyes are so focused on spending and ignoring taxation of corporations and the wealthy. You tax corporations, they will spend less then use those taxes to build out these governmental programs that we need because private industry is NOT meeting the needs of the people or the planet.

[@michaelfuller7804]

please what service jobs do you or your competitors hire full time?

[@maierhof]

Finally someone is standing up and telling the truth the way it is. Thank you Barry. Sorry you had to deal with the bobbling heads of CNBC interrupting you the entire time.

[@ColourRevolution666]

Starwood is on my watchlist. Will buy in future.

[@frankwang4143]

Dude is talking his book as always. Trying to protect all his money lol

[@R4dr1ar]

So are his graphs false?

[@AH-fm7rj]

@@R4dr1ar What do the graphs say? that the rents are up 100% in the last 3 years. You know that +4% (even if true) is still a rent growth 🤣🤣🤣

[@R4dr1ar]

@@AH-fm7rj Are you that stupid? The graph points out that the Fed might use a bad model and therefore might create a unnecessary recession

[@MegaPapa8888]

He is mad at federal govt.

[@eh7599]

Don't cry Barry

[@mikehundt4263]

Guy whose job depends on low rates lobbies for low rates. Shocking 🙄

[@harrychu650]

He is mostly correct. The poorly educated cannot see that this monetary policy is putting austerity upon the middle class while shifting "more" spending to the Gov't budget is simply a wealth transfer or reallocation of wealth. Overall, this will not bring down inflation, money will just be reallocated to the special interest cronies. Pro-growth policies are needed that will drive productivity through disruptive innovation is needed.

[@jacobwatson1818]

Inflation has been cut in half from a year ago and it appears there is. Strong chance it will be down to 3% ish by end of year. You have some good points but you're wrong about Inflation.

[@harrychu650]

@@jacobwatson1818 I agree with the decline in CPI YoY Comparables. However I submit to you that the inflation "felt" by consumers, and most felt by the middle-class will continue regardless of what the CPI prints are. The issues we are dealing with have to do with demographic shifts whereby the youngest Boomers are now at -- traditional -- retirement age. Price gouging has taken hold in industries like autos, airlines, hotels, heatlhcare, insurance, and others, the street refers to this as "Pricing Power." These are the same industries riddled with special interest cronies who are receiving more taxpayer dollars. Rate hikes will not impact this IMO. Energy and food pricing will be unstable so long as the Ukraine Conflict continues. If these misguided monetary policies continue, the result will be a diminished middle-class IMO. Food for thought.

[@jacobwatson1818]

Harry Chu energy prices have come down as well. To clarify, you agree that inflation has come down dramatically in the last 12 months, and it appears it will continue to decrease?

[@harrychu650]

@@jacobwatson1818 Yes I agree according to the CPI that inflation has come down and prices are not moving up YoY at a 9% rate. As you pointed out most of that is oil which the FOMC will admit isn't impacted by rate hikes

[@jacobwatson1818]

Harry Chu Good, I'm glad we agree that inflation is better and going in the right direction.

[@virgilpalmer2427]

These people are so detached from reality it's simply amazing..😂😂😂😂😂

[@QuiLe-qw5jb]

👍.CNBC Was right: "What's Inflation when everything are FREE?". 😅

[@watchr0b]

Poor people stop giving money to rich? Print more and give it to them. Things start looking tough for business? Throw the poors out of work. Repeat.

[@rblongfellow]

This guy is clueless. Get warren mosler on

[@abvincent12]

It's comical - CNBC drags on these very rich people to tell us how everyone else is doing. Why don't you go grab a few workers off the street and ask them how they are feeling. I think that'd be more realistic than asking this guy.

[@lanebarker297]

This guy deals in REAL ESTATE............ he needs ZERO interest rates, what do you think his opinion is going to be people !!!!!!!!!!!!!!!!!

[@brianoleson9224]

atleast he is being honest that we are seeing historic things going into a recession and not trying to say we will see traditional one

[@epluribusu9430]

Money mad Sternlicht. Never ever enough money. Confederate Republican Sternlicht.

[@Oneofone88]

Gig economy is why things are off

[@robertpritchard4681]

Do you need to be an economist to figure out that Ya Money is coming out of the system but they found so much money into the system but it's not affecting anyting that's why your people don't realize or maybe a dude you're just not admitting it on TV I don't know

[@harrychu650]

The money they handed out wasn't to the individual citizens, the bulk went to the corporate cronies, e.g. Airlines and that is continuing with the highest government budget in history while they are seeking to make more of you unemployed.

[@jianlinzou3100]

this guy loves inflations 😂

[@michealgary4559]

I'll forever be thankful to you you've changed my whole life continue to preach about your name for the world to hear you've saved me from a huge financial debt with just little investment, thanks so much Mrs.Nancy Kay Rinker

[@Jasonbarren1]

I’m surprised you know her too. I’ve been making a lot of profits investing with her for a few months now.

[@SandraGrant0]

You invest with Mrs Rinker too? Wow that woman has been a blessing to me and my family

[@PaulLeed]

I’m new at this, how can I reach her?

[@gabrielrose3271]

I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much.

[@michealgary4559]

She's mostly on telegram

[@eh7599]

Commercial RE dead money bye bye

[@domwlokosky3171]

Only smart investor that understands economy

[@billytuchscher]

The economy is not slowing because passive investment of 401k's/Retirement Funds keep feeding the stock market with an insatiable appitite, which throws off the demand curve, and artificially inflates stock values.

[@petersack5074]

3:40 Time. Y E S. Spending. .....take a peek : 31 trillion dollars. BREAKDOWN. Say there is 333,000,000 million US citizens. 31,000,000,000,000 trillion dollars divided by 333,000,000 million = 93,093 dollars each. IF EACH PERSON, SPENT THIS AMOUNT OF MONEY, EVERY DAY. THIS, WOULD REQUIRE 333,000,333 D A Y S. .....it ain't gonna be paid off, Mr Joe Biden ! Like many Americans, the federal government is shelling out a lot more money to cover interest payments on its debt after a series of Federal Reserve rate hikes over the past year. The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier. The fourth-quarter tab was also nearly $30 billion more than in the prior quarter, which is the largest quarterly increase on record, said Jerry Dwyer, an economics professor emeritus at Clemson University. Borrowing costs are expected to become an increasingly heavy burden in coming years. The Congressional Budget Office is set to provide its latest estimate on Wednesday. The surge is due mainly to the Federal Reserve raising interest rates by 4.25% between March and December. The central bank increased the rate another quarter point in February. Until recently, it cost the federal government very little to issue debt to finance its operations. “It was almost free money,” Dwyer said. “You could borrow a trillion dollars, and if you financed it with Treasury bills, you paid almost no interest. But interest rates weren’t going to stay there forever.” The national debt is once again in the spotlight now that the US has hit its $31.4 trillion debt ceiling, forcing Congress to take action or risk a catastrophic default. The Treasury Department is taking extraordinary measures to allow the government to continue paying its bills in full and on time, which it expects to last at least until early June. The spike in interest payments also contributed to the federal government hitting the debt ceiling that much faster. And it adds to the pressure on Congress to raise taxes, cut spending or allow the government to borrow more to meet all its obligations. Higher interest payment in coming years Even if the Federal Reserve slows or stops raising rates this year, as many economists expect, the nations' borrowing costs will continue to increase. That’s because as the existing debt matures, the government issues new debt with the higher prevailing interest rates. The higher rates could increase the net interest cost on the national debt to about $9 trillion over the next decade, according to estimates by the Peter G. Peterson Foundation, a nonpartisan organization that seeks to raise awareness of America’s long-term fiscal challenges. That’s up from the record $8.1 trillion that the CBO projected in May 2022 and the $5.4 trillion it projected in July 2021. By 2032, interest costs will triple to more than $3 billion per day and to at least $9,400 per household, on average, according to the foundation. They are on track to become the largest federal budget item, surpassing Social Security and Medicare by the middle of the century.