is then: joining the global head of fixed income, and dove peebles.he issue of goldilocks, retail stocks fell for a third month. it does not pay the picture everything is ok in the u.s. economy. kathy: i think what we are seeing is the normal replenishment that we see, particularly in credit card debt. there is a tendency to recoup. in general, job growth is good and that is what drives it. say, bob,let's just are things as good as they are expected to be? bob: things are awesome right now. look at small business optimism. the second highest rating in history. highest reading was september 1983, and that was during the reagan reform years. you look at wage gains which are picking up your you look at central highest reading banks wy slow and gradual and normalizing at a pace that we in the markets can easily absorb. jonathan: dove peebles? people are looking in the wrong spot. we don't have core pce. the inflation has been in asset prices. everybody thinks that is a great thing. as au define goldilocks buoyant economy, which i agree with bob, we have a

still with me, bob michele, kathy jones and doug peebles.campbell soup, a lot of people use it as an example to say maybe it is the beginning of the end of the good times for investment grade credit. what is your view? douglas: i think it goes back to this discussion around the central bank. it is not an on-off switch, but they are slowing significantly. the liquidity has been available 12 months ago, it is a different level now. it is a dimmer. we don't expect to see lights out at any point in time, but markets are behaving today i think more normal than 12 months ago. namely, there is a name that comes up, a concession in the marketplace, it prices, it does not trade immediately stronger but we are digesting it and from the day after issuance until now, it is doing reasonably well. kathy: there has been a lot of supply to absorb, a huge amount of supply to absorb, and you have the expectation of higher rates down the road. a year ago, i'm not sure everyone believed rates would move up and be higher six months or 12 months from now. now if

morgan, kathy jones, and doug peebles.the good old days, 12 months ago, you could narrow through execution. they would go into the secondary market and then continue to rally. that didn't happen with campbell soup. a lot of people use it as an example to say maybe it is the beginning of the end of the good times for investment grade credit. what is your view? douglas: i think it goes back to this discussion we had around the central banks. it is not an on-off switch, but they are slowing significantly. the liquidity that has been available 12 months ago let's say is a different level now. again it is a dimmer. we don't expect to see lights out at any point in time, but markets are behaving today i think more normal than they were 12 months ago. namely, there is a name that comes up. there is a concession in the marketplace. it prices, it does not trade immediately stronger, but we are digesting it, and from the day after issuance until now, it is actually doing reasonably well. jonathan: kathy. kathy: there has been a lot

jonathan: joining me around the michele, bob michael -- kathy jones and douglas peebles.athy, this doesn't quite compete the picture that everything is ok in the u.s. economy. kathy: first is always a little soft and we had a pretty good fourth quarter in terms of consumer spending, so i think what we are seeing is a normal retrenchment you see, particularly a lot of credit card debt was run of over the past couple of months. there is a tendency to recoup. in general, the economy looks pretty good and that drives it. jonathan: bob, are things maybe not as brilliant as they seem? bob: things are awesome right now. jonathan: welcome me through why. capacity, look at small business optimism. it posted the second highest reading in history. the highest was september, 1983, during the reagan reform years. look at wage gains, they are starting to pick up. and you look at the central banks. they are being slow and gradual and normalizing at a glacial pace that we in the markets can easily absorbed. jonathan: doug? douglas: i think people are looking at the wrong place at inflati