YouSaid · the spoken record

Manny Friedman

lines on the record: 57
first: 2019-03-18
most recent: 2019-03-18
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“My favorite motto comes from the Book of Isaiah which says You are my witness I am the Lord You're not my witness I am not the Lord and since interpreted over again that what is it really saying it saying each of us is the hand of God each of us can be God can save that person on the street or make a difference make small differences make big differences and it really is a powerful powerful statement because at least it allows me to understand how human beings how you can have something like the Holocaust happen which being Jewish is something that is very very important to me but every single group has had their own Holocaust and they ask the same question or the same terrible tragedy they say well how could this happen well at least that gives you an answer Of how it can happen because the rest of the people don't do anything.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's where a great leadership is are leaders who see the bigger issues, the bigger good of society. And then they take people who want to be small thinkers and they bring them up to their level instead of going down to the lowest level.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, leadership. We don't have this in every country. We didn't always have this in the United States. So obviously we're idealistic. People forget people who call for George Washington to be guillotined in the 1790s on some of the fights about France and England. So, you know, we've never been as perfect as we think we are, but great leadership can make all the difference in the world. And those people have to make everyone rise to their levels. And it's disturbing.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Their innate self interest at times. We have lots of goodness in us, but it's hard to get that done. And so what you have going on now in Congress is the tragedy of the commons, fishing, killing every single fish in the ocean, killing every single bison, because Cholam as fast as you can because I'm a hunter, I'm going to maximize my benefit. And somehow you have to break that.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Childishness and in a sense going backwards. I mean, there's a famous law called Dunbar's Law. This is everything is in three hundreds. Why? Whether it's your Facebook people or the people you can talk to? Because we grew up in communities of 300 people for 100,000 years, 500,000 years. That's why you only can have 300 real friends. That's why gossip is so important. But the beauty of these complex societies, we were able to hopefully override Dunbar's law. And here we see the opposite, that everyone's going backwards. So my pet peeve is the government, which has to be the leader, has lost its leadership ability. And we all need leadership. Well, it's called the tragedy of the commons because it's very, very hard to get people to act past.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Biggest pet peeve is I'm very, very discouraged with the government that they're not able to work together. This country is so powerful, so great, but we're part of the world now. But I feel like I was a teacher at one point. I taught seventh grade. When I watched Congress and when I watched the administration, I feel like I'm back, not in the seventh grade, I'm back in the first grade. And I just can't believe it. And especially when all these people were growing up were my heroes. And I've never seen such levels of”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Everybody's crashed because if you bike enough, you're going to have lots of crashes. It's like saying if you play professional football, are you going to have injuries? Period. You're going to have injuries. You're going to have crashes. Everyone who bikes has crashes.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's really biking, though it's biking because I have to bike, because my wife does triathlons, and for me to bike with her, I need to bike, because she will bike 70 80 miles a day. So fortunately she got me a pedal assisted bike, and so biking is probably my biggest sport.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Change come big change eventually. And we already have ten people working on Opportunity Zone and we are trying to get it to the next level. We like to be investors. We like to be lenders. We'd like to be people who work with the balance sheets of the lenders to allow them to make these loans.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, what we're doing is we're trying to raise money and opportunity zones. We have a fund and we're raising money and building projects, but it's a tiny part of what we do. We're mainly a specialized player in debt of banks or small banks, but that's a lucky break for us because one of the secondary benefits of opportunity zone is many of the small banks in the United States that sit in the middle of Opportunity Zones. They're going to be overwhelmed with new loan applications. And so we're getting some of our leads from small banks or medium-sized banks. We will do capital relief for small banks. So anytime you have a massive change, it creates the opportunity. It's when you have no change that there's no opportunity. So I don't care whether it's 08, 09, or the Great Depression. Out of those things come great.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would short Silicon Valley right now. If you have real estate in Palo Alto, you should be selling it. Because if you're in Silicon Valley, you're except for a small place in Silicon Valley, which is an opportunity zone, those businesses are all going to move to Oakland. Are they going to move to parts of California that are opportunity zones?”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“You have to start somewhere. We call it the law of increasing returns. The reason Austin is the capital of Texas is people who are crossing the plains and a wagon broke down and many of the people in the wagon trains said, we're not going any further. They stopped there and that became Austin, Texas. Charlotte, North Carolina is the banking capital in the United States. No inherent advantage except it was the first state to approve.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of business formation in the United States, you look at what's happened in Silicon Valley over the last 20 or 30 years. A lot of the people there say that the companies that spawn out of Silicon Valley in part are successful because you have the human capital ecosystem that's sitting there. And maybe you start to have that more and more in a place like Austin, Texas. How do you go from having none of that in an opportunity zone to creating enough of an ecosystem of human capital so that businesses can hire the right people and thrive?”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Hundred dollars, a thousand dollars, a million dollars, a hundred million dollars, a billion dollars. So all of a sudden the ability to start a business in the United States is going to become 20 times easier because the hardest part of starting any business in this country is money, having the initial capital and staying power because you can have the most brilliant idea, but you need staying power. And the money coming into opportunity zones is going to provide you that and provide you with a community environment, an environment that helps feed your business.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Every single person who's going to start a business in the United States is going to look at opportunity zones. The reason is they're across the street from where they are now in many cases. And they need to look at the rules, find out about the rules, because what are those advantages of the rules? The first advantage of the rules, if you're going to start a business or expand your business, you're probably going to have lots of people, lots of funds who want to give you money. And raising money, raising capital is the honey that starts off it, is the catalyst that makes it work. And if Uber can't raise money, if Amazon can't raise money, if Google can't raise their initial round, there are no companies. And so that is one important key, and that's what's so important about opportunity zone. It provides you access much, much easier.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because if you create massive jobs, massive construction, they're the beneficiary. In Oakland, we know our hotel is union built, union labor. Great. We're overjoyed. So there will be pushback. There will be abuse. It's going to be surprising, the pushback and the abuse is going to come from people who see this as a change that they don't want because they're used to making a change come through themselves. So you'll see pushback from nonprofits. You'll see pushback from everybody who feels threatened by this program.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Like it the way it is. And so the abuse actually is going to come from people saying, no, no, this is not the way we should make change in the United States. We want to make it through massive government programs, which we know are failures over and over and over again. And so there are people who are strongly opposed to one change of their areas, not in my backyard, whether it's a windmill, whether it's solar, no matter what it is, whether it's affordable housing. The biggest issue is never in my backyard. So you are going to get pushback. But it's surprise where you're going to get pushback. You're getting pushback in Long Island City from unions. You're getting pushback from different specific groups that are actually the major beneficiary. Unions are a major, major beneficiary of.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Part of the reason we have abuse income taxes, nobody can understand their income tax. The beauty of this is it's so simple that it's A, B, C, D, E. The federal government's not involved with it on an hourly basis. New market tax credits is a wonderful program to come up with $100 that costs the government $200. That's a joke. It costs more to administer it, to put it together than the net effect. Here, the government saying, look, we're going to change the tax policy. It's going to be self-administered. We will audit it and let it go. Now, I would argue the abuse you're going to see is abuse that people don't like to talk about, and that is change. Nobody likes change. Everyone likes life, Lisa, if you're living the good life.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Industry or new concept, and you're going to get people who don't understand it, who aren't used to doing things a certain way, doing it the correct way. And so it will be abused by people who are maybe sham artists. I don't know, or it'll be abused because it doesn't create quite the change everyone hoped for. And that in some cases that'll be true. But I believe that we have abuse everywhere. We have abuse in income tax. Income tax has been around for almost eighty, ninety years now. Do we have abuses there? Absolutely every single day. So you're never going to prevent complete abuse. The best way to prevent abuse is one, make something simple.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, what could go wrong is I could be dead wrong in terms of how many people are going to use this, but unless it's used in massive size, then this becomes another government program. If this is going to be a $50 billion small program, then forget abuse. It's just nothing but another failure. I believe it'll be more than a trillion dollars. This is going to go on until 26. They're already talking about extending it because they see this as a win-win situation. The government is going to make money in this program, not lose money because you're taking dead assets. You'll never get the tax on. You're creating jobs. We estimate it'll increase GDP by four tenths of percent. In terms of abuse, there's lots of people who jump in anything new, whether it be Bitcoin, whether it be marijuana, whether it be any new...”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“You mentioned the potential for abuse. If we're in the top of the first or we're in the warm up pitches and we've got a nine inning game, and hopefully extra innings, we've got a long way to go with a lot of potential. Could go wrong”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“To get together and put meat onto the law. That's what they're doing. There will be another set of regulations that will allow people to really be aggressively doing things. And then there'll be abuse regulations. Because whenever you create a program of a trillion dollars or more, it's only natural that there'll be abuses. And so that will be a third set of regulations. But again, this is just beginning, and it's mind-boggling to me that people don't understand the gigantic impact. Some of the impact is negative. It's going to have a negative impact on a lot of real estate that's in more traditional areas. The same thing. The demographics had a negative impact on some places, United States and the suburbs, whether it be Washington.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Way through just a bipartisan effort. It started on the progressive side of the Democratic Party, and it's been going on trying to get through Congress for six, eight years, and the leaders are probably Tim Scott and Corey Booker on the Senate side, one's Republican, one's a progressive Democrat, and they worked on it, worked on it, worked on it many, many other people have joined them, and they slipped it in to the tax legislation, the bill that was passed in seventeen, which no one even barely realized it. So it is law. It's just no more than a page, page and a half. But now the regulations have to be written around it, but that doesn't need Congress. That just needs the internal revenue and the Treasury Department.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Over the United States who are looking for capital. Capital is the key to making change. And one of the most powerful websites is the Economic Innovation Group at Sean Parker from Napster came up with this idea seven, eight years ago and is really the key driver. This is one of his think tanks and they have a wonderful website with interactive maps, with news. It's EIG and it's very easy to get on it and get all the material. That's certainly a basic part. But this is so far gone under the radar screen, but at some point you'll see an explosion out there.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“How did they do it? This is a growing area. Remember, if this is a nine-inning game, they're throwing out the worm-up pitches. We don't even have the regs out. And so it's so early, and there's so much skepticism I talk to a thousand people nine hundred of those thousand people think it's all make-believe. And when you get any type of dramatic change, no one wants to believe it in history. And you can go back in history and look at any gigantic change, political, economic. It's hard to believe that there will be a dramatic change. It doesn't happen that often. There's access to websites. There's articles. We're overwhelmed with a number of people once the word gets out that you're investing, you're overwhelmed with individuals, with corporations.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“When really 90% of the publicity should be, we're going to create 1,000 jobs, 10,000 jobs. We're going to create a million jobs in these areas. How do you go about?”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“On a training program, or maybe we'll build a clinic. We don't know yet with another group that's more interested in the ESG part of opportunity zones. So there's a wonderful linkage between philanthropy and the businesses that are going to be interop zones, but also please keep in mind that this also creates a massive lifeline to the people already operating businesses and opportunity zone because now they can expand. Now they can compete better against the businesses outside the opportunity zone. They get paid for helping to change these areas for the better or create jobs. If this program doesn't create jobs, then it doesn't work. The one negative so far is that all the publicity has been about real estate, about how much money you're going to make in real estate.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“People who used to work at, and there's nothing wrong with working at the Dairy Queen, who used to work at the Dairy Queen, but now they're going to work at a warehouse and they're going to make not tips, not minimum wage and tips, but $45,000, $50,000, and they're going to have health insurance. They're going to have leave. Well, these people now become important parts of society. They don't lose their job when they have a flat tire. They go to the PTA meetings. They have health insurance. They're in a sense not part of the government safety net. They're part of all of society. And this whole county has 3,000 jobs. We may create fifteen hundred new jobs. And there we will work through our philanthropy isn't building the warehouses, but we'll work.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Do artwork and they live it either at home or they live in group homes. And so we're giving money to them for the first time and we're trying to tie it into the hotel that's going to be built where we will buy some of the art, where we'll give them two or three events a year. We are going to try to do the same thing in Hardyville, South Carolina. We're building warehouses next to Savannah. Hardyville is one of the poorest counties in South Carolina. If you take out the people who work at the airport, the average income for a family is $28,000. Well, if we can do a training program on the”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Farming, what we can do for more traditional farming. Because keep in mind that we have the farming system we have today because there's this massive subsidy for every large company. So we're looking at that in terms of a pure investment. But we're also looking to tie in to opzone projects to tie in to what we want to do. Our company is building a hotel in Oakland, a low-end Marriott hotel for millennials, a Moxie Hotel, and 20 blocks away, 15 blocks away is one of the most amazing philanthropic efforts I've ever seen called Creative Arts, which basically has 100, 200, 300 adults who would have trouble getting jobs in industry, but they come to this place and they...”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're doing it from a philanthropy where saying three or four different ways, not just us, but other people, so we have Kreski Foundation, a foundation saying, look, if you're putting together an op zone fund that meets our criteria, and that would be bias towards affordable housing, be biased towards Detroit, we will give you a first loss piece. We'll put in ten dollars on your hundred dollars and we'll take the first loss. It makes it a fifty times better investment. So we ourselves are looking at investing in opsone in different ways, mainly tied to the things that we care about. One area which we're just starting is in the anti-factory farming area. So we're looking at a little more of the rural areas of what we can do for vertical.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we start with this high level thesis that you're going to have significant capital flow. And if you get in the epicenter of where that capital is flowing, you're going to see some great investment returns. You're tackling this from two perspectives. One is your business is investing in there. And then the other, I know with your own family foundation, you're making investments, you're allocating capital to the zones. Let's start with your family investments. From the bottom up, how do you start, say, okay, I want to invest in opportunity zones? What do you do?”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“There was nothing inherently strong about the economics of Abu Dhabi 20, 30 years ago. They married intellectual capital with unlimited money, and now it's aircraft leasing capital of the world or a major aircraft center. Before that, it was sand in the desert”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“To a great extent because there's so much paperwork, it's so artificial at times that you make non-economic investments and the money disappears and that gets people upset, gets everyone upset. So now for the first time, every single bank can meet their community reinvestment act criteria and do that through investing into ops owns. Now often they're not dissimilar to the investments that they made before. They're somewhat similar only this time they're getting the benefit of a trillion dollars coming right behind it. If you combine anywhere in the world, if you take unlimited money and intellectual capital and you combine it, you create massive change, you create massive economic activity. Look at Abu Dhabi.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“You picked up on a trend that took place over the last 25 years. That is the movement back to the major cities, the major intellectual capital. Now, there is a doing good portion here. There is a ESG portion here. So we are seeing some state pension funds, some specific non-taxpayers that are saying, well, look, you know, we can get a good return and do good at the same time. So we're seeing this in a lot of places in some of the large philanthropic foundations. are making a major push in this area keep in mind it's also has one other twist to it and that is the community reinvestment act which is two three hundred billion dollars a year that makes banks invest in certain areas the truth is it's been a failure”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“There is no specific economic incentive. It's just they're going to get a higher return on their money. Do you want to be downtown New York, which where jobs are going to be moving out from? Or do you want to be in Brooklyn or the Tippan New York? Do you want to be in Bethesda or do you want to be in Silver Spring? So once you create the enormous momentum, the non-taxable investor looking for making good investments is simply going to follow the people who are creating these jobs, who are creating the momentum here. So it's like water. It seeks the lowest ground, returns simply seek the highest return based on the risk. And that's what's going to happen here. The same way anyone who bought downtown buildings 25 years ago in San Francisco, New York, Washington has made a brilliant investment because”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“There are some existing benefits to businesses in a most every opportunity zone area, but this doesn't take away from those extra incentives. Having said that, these incentives are so complex, these incentives So we're already seeing non taxpayers, state pension funds begin to look at this as a way to change areas that are in need by joining with the people doing opportunity zones.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“The first step will be probably business investments, and Puerto Rico is going to be in business investments. Let's just go through a few examples that haven't gotten real publicity. Google is just moving 20,000 AI people to the Tipan, New York. Now, some of it's not in the opportunity zone, but it's surrounded by three opportunities zones, 20,000 artificial intelligence people will create 50,000 artificial intelligence people. Google will go and start some of their offshoot companies across the river in Brooklyn or in the operative zones on the Tipp of New York. Micron's building a plant in Manassas, three billion dollars opportunity zone. Amazon's second headquarters is partially an opportunity zone in northern Virginia. These things have massive multiplier impacts.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Going to have stranded real estate. So the main aim is jobs, though the publicity how everyone has looked at it has been from a real estate point of view. Real estate is supposed to be the infrastructure of this program.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the rules are still being put out as we speak. So right now, in fact, it's almost impossible to invest in a business yet because the rules are not established. We have heard from Congress, we've heard from the White House, we've heard from Treasury turn of revenue that the rules are going to be extremely liberal to encourage both investments in op zones, allow businesses that are in op zones to participate and the rules for real estate have further to be defined, though certainly because the real estate rules were put out first, real estate people were pretty aggressive, so they have jumped on this first and gotten all the publicity. The fact is, which people don't realize, seventy percent of this is aimed at business. If this doesn't create jobs, jobs jobs, jobs, then this is going to be a complete failure.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“They invest it in an opportunity zone fund and they must do that within six months of when they take their gain. However, if they get a K1, they have really three months after they get their K1 to make their investment. They can go back the entire next year. So if you got your capital gains in April, then you would have until June 30th to defer your gain to have your tax saving. So we expect to see a great deal of activity between April and June of this year because the only thing you can do.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the mechanisms that you mentioned for deferral, just make sure I understand, someone takes a gain and it could be a stock, it could be a sale of a business, it could be real estate. They then take the money they would have paid taxes on the gain and they make an investment with it.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“So the areas were decided by the 2010 census. It had to be areas that were underserved, had lower income, and that then was the starting point, 25% below the median income. Then once you had all these different areas, each governor of each state could then pick the places it wanted because it turned out there were too many areas and it covered too much of every single state. So in fact, it's ten percent of the entire United States as an opportunity zone that's in every city, every state, every rural area, all of Puerto Rico. So it's everywhere. That's the first thing, and it covers 12% of the population. So there is no trouble finding an opportunity zone anywhere. In any place you want to locate a business or in any city in the United States.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I tell you, look, you're starting the new Amazon, and if we're successful, you're not going to have to pay capital gains tax on your investment, then it's a massive recruiting tool for you, for your number one, number two, number ten person. And also a certain tsunami effect. It has a law of increasing returns where people want to be located where things are changing, where industries are coming together. And so that is the real goal of this program.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is the mechanism? It's a simple mechanism that we're going to defer capital gains. You put up $100, you defer $100 of capital gains in some states. That's a lot. In DC, it's 53%. In New York, it's 53% on short-term capital gains. It's 32% on long-term capital gains. And we're going to defer that gain, but even more important, your investment is going to be non-taxable if you make a long-term commitment. It's going to encourage every single business that's going to start up United States. It's going to force it for tax reasons, for economic reasons, to be in an opportunity zone. Not only that, the opportunity zone also acts as a phenomenal recruiting tool because when I go to hire you.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“The mechanism is quite simple where basically the government's going to say look, if you have any kind of capital gains today or potential capital gains, what we'll do is we'll defer those capital gains if you invest in these areas and just as important on your investment if it's successful, whether it be a real estate, whether it be a business, whether it be Uber, whether it be Facebook, whether it be the newest AI company. We are not going to tax you on that investment if you hold it for ten years and we won't tax you on it until forty seven when you will then get the basis of two thousand forty seven.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“So that of a period of time we believe at least a trillion dollars of capital is going to flow from one area, one geography to another geography, from one neighborhood to another neighborhood. And that is what's going to happen.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“and let it flow and let it change the different parts of the country and let it equalize the economic areas of the country. There's a starting point. What are the actual regulations that create these incentives that you're talking about to change the flow of capital? So the incentives are that in this country we have a massive amount of what I would call unlocked capital, capital sitting in buildings, capital sitting in stocks that people don't want to sell because they've been held for so long or created so cheaply and therefore they have huge capital gains they don't want to take the capital gains. And so because number is so large And it grows every year. Right now, it's”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“And they're very, very active in that area. They said, look, we're going to create a change in America that's going to move the needle not a foot, not an inch, but we're going to move it ten miles. And we're going to do this by having this massive reallocation of capital from one area of the country to another area of the country. And that is really the goal of the opsone to try to equalize the massive disparity that's grown in the country for the last twenty years, fifteen years, ten years, five years. And so it's certainly a large, gigantic attempt. It's the biggest thing I've ever seen in my lifetime.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source
“Great to see you again. Good, Ted. Our last podcast worked out pretty well. Oh, good. Good. Well, we're down here at the Context Summit in Miami. So if there's chatter or background noise, there's a lot of activity. The last time we spoke, you had mentioned this new thing people were going to pay attention to called Economic Opportunity Zones. And it was the first I had heard of it. But working with family, paid a lot of attention to it since, and I thought it'd be fun to sit down and just talk about it. So why don't we start with your describing what is this thing that people are talking about, these economic opportunity zones? Sure. So a group of people came together and have worked on it for six or seven years. And these are people who really want to try to change America more from a philanthropy point of view.”
2019-03-18 · Capital Allocators · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · IDENTIFIED FROM THE TRANSCRIPT · source