Michael Milken – The Milken Institute

• Milken noted that he would ot making specific predictions, but a thematic view of how he sees the world
• Thinks it’s valuable to understand history, and, unfortunately, we never learn from history
• Churchill said that when a solution to a problem is manageable it is always neglected
• It is no surprise why Germany is winning in the EU, their unit labor cost are much less than all the PIIGS
• Germany’s unemployment level is less than 6% vs 21% in Spain
• Northern Europe has routinely the least amount of problems, and Southern Europe has the most
• Valuable to look at 1) Perception vs Reality and 2) Capital Markets
• Perception: What came first the chicken or the egg? The correct answer is egg. Reptiles were laying eggs before chickens existed, and the birds that layed the egg to the first chicken were not chickens.
• You just need a different perspective on the problem to find the solution. Are we asking the right questions?
• The U.S. surprisingly has grown it’s oil production more than any other country in the past 3 years. Volatility created alternative production. North Dakota is the 4th largest producing state. ~ 6% of crude output
• Digital real estate is the important real estate. 6 billion digital phones in the world. Who is going to control the real estate?
• Brazil: Manaus Brazil use to be the rubber capital of the world. Now it is an electronic manufacturing powerhouse. Foxconn is investing 12 billion in Manuas.
• The world is moving east. Of the 50 largest GDP cities, 20 will be in Asia. Half of the European cities will drop of the list.
• Asia has 59% of their population that is 20-34 years old. This is where production and demand will be.
  
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