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Trump’s market impact: Bitcoin, M&A, IPOs + transition picks; Polymarket CEO raided by FBI Podcast Episode Description
(0:00) Bestie intros!
(7:57) Election impact on Bitcoin, crypto, and fintech stocks
(21:56) M&A and IPOs: What to expect in 2025
(39:52) Pharma advertising on cable tv: Should it be allowed? Is big pharma buying influence?
(58:17) FBI raids Polymarket CEO Shayne Coplan’s home
(1:05:51) Trump’s transition picks: Strategy, highest upside/downside, and more
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Referenced in the show:
https://www.google.com/finance/quote/BTC-USD
https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-pli-s-56th-annual-institute-securities-regulation-111424
https://fred.stlouisfed.org/series/DGS10
https://www.businessinsider.com/federal-reserve-cuts-interest-rates-quarter-point-powell-inflation-election-2024-11
https://www.cnbc.com/2024/11/13/cpi-inflation-october-2024.html
https://x.com/elerianm/status/1857297087010107728
https://x.com/chamath/status/1359248379377762310
https://www.congress.gov/bill/118th-congress/house-bill/4763/text
https://stockanalysis.com/ipos/statistics
https://pitchbook.com/news/reports/q2-2024-pitchbook-nvca-venture-monitor
https://www.google.com/finance/quote/TSLA:NASDAQ
https://x.com/elonmusk/status/1848055198494728496
https://www.nytimes.com/2024/11/13/business/media/msnbc-fox-news-ratings-election.html
https://x.com/EndWokeness/status/1856208378541769076
https://www.americanrhetoric.com/speeches/PDFFiles/Mark-Zuckerberg-Letter-on-Govt-Censorship.pdf
https://www.cjr.org/the_trump_reader/trump-threatens-new-york-times-penguin-random-house-critical-coverage.php
https://nypost.com/2024/11/13/business/fbi-seizes-polymarket-ceos-phone-electronics-after-betting-platform-predicts-trump-win-source
https://www.bloomberg.com/news/articles/2024-11-13/polymarket-investigated-by-doj-for-letting-us-users-bet-on-platform
https://www.reuters.com/legal/us-federal-court-upholds-ruling-letting-kalshiex-list-election-betting-contracts-2024-10-02
https://www.nbcnews.com/tech/tech-news/fbi-raids-polymarket-ceo-shayne-coplans-apartment-seizes-phone-source-rcna180180
https://x.com/shayne_coplan/status/1856838409861386722
https://www.cftc.gov/PressRoom/PressReleases/8478-22
https://x.com/shayne_coplan/status/1856808022481539192
https://fortune.com/crypto/2024/10/30/polymarket-trump-election-crypto-wash-trading-researchers
https://x.com/WallStreetSilv/status/1852863585375977877
https://x.com/charliekirk11/status/1857237886736715971
https://x.com/VivekGRamaswamy/status/1856725762130260383
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Trump’s market impact: Bitcoin, M&A, IPOs + transition picks; Polymarket CEO raided by FBI Podcast Episode Top Keywords
Trump’s market impact: Bitcoin, M&A, IPOs + transition picks; Polymarket CEO raided by FBI Podcast Episode Summary
In this episode of the All In Podcast, hosted by Jason Calacanis, key topics include the state of the cryptocurrency market, the impact of political decisions on finance, and the dynamics of mergers and acquisitions (M&A). The hosts, including Chamath Palihapitiya, David Sacks, and David Freiberg, discuss the surge in Bitcoin and other financial stocks following political events, particularly focusing on the Trump administration’s influence on the crypto industry. They highlight Trump’s engagement with the crypto sector, including his plans to replace SEC Chairman Gary Gensler.
The conversation also delves into the M&A landscape, suggesting that mid-market companies should be allowed more freedom to buy and sell to stimulate economic growth, while larger companies should be restricted to prevent excessive consolidation of power. This approach could lead to a more dynamic market with new significant players emerging.
A recurring theme is the influence of media and self-censorship, particularly in how stories are selected and covered, with a focus on the pharmaceutical industry’s advertising practices. The hosts question whether pharma companies should be allowed to advertise directly to consumers, suggesting that financial incentives might shape media coverage.
The episode also touches on the concept of “punctuated equilibrium” in evolution, drawing parallels to market dynamics where significant changes can lead to new growth opportunities. The hosts discuss potential disruptive innovations that could have both positive and negative impacts, emphasizing the importance of strategic decision-making in navigating these changes.
Overall, the episode provides insights into the intersection of politics, finance, and media, offering perspectives on how these elements influence market behavior and public perception.
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Trump’s market impact: Bitcoin, M&A, IPOs + transition picks; Polymarket CEO raided by FBI Podcast Episode Transcript (Unedited)
Speaker: 0
00:00
Hey, everybody. Welcome back to the All In podcast. With us again today, yawning from Milan, your favorite, the chairman dictator Chamath Palihapitiya. You look a little tired meh friend. How are you doing over there bryden?
Speaker: 1
00:16
I left Monday. I flew to Singapore. I was on the ground for 2 days and I flew here. I’m here for 2 days, and then I go to London for 5 days. I’m exhausted.
Speaker: 0
00:31
Arya on a whirlwind tour.
Speaker: 1
00:33
I mean, I’m based I’m flying around the world, literally flying around the world moving west. Meh.
Speaker: 0
00:41
Right.
Speaker: 1
00:42
I’m tired.
Speaker: 0
00:42
And this is all in service.
Speaker: 1
00:45
Ai gosh.
Speaker: 0
00:45
I mean, at our age, you feel it. People do. It hits differently when you when you pass 40. And I’m assuming this is 80, 90 business. You’re out there saloni. You’re selling. You’re selling grok. You’re selling 80, 90. You’re out there doing BD?
Speaker: 1
00:59
Little selling, little closing. And then I’m speaking at the Oxford Union on Wednesday.
Speaker: 0
01:04
Okay. Okay.
Speaker: 1
01:05
Well, that
Speaker: 0
01:06
sounds fancy.
Speaker: 1
01:07
Checking the bucket list.
Speaker: 0
01:09
Okay. There you have it. And in his camo hat and in his election afterglow. Look at the glow. He is in that afterglow. He is post ai here. Post election
Speaker: 2
01:24
Anybody got a cigarette? I need to I need to light up the cigarette.
Speaker: 0
01:28
I know what you said. That was a close one. I didn’t think I was gonna make it, but you did. Do you like my glow? Too sick.
Speaker: 2
01:34
J. Cal, this is this is ai hat. Well, it says Trump fans.
Speaker: 1
01:37
You look
Speaker: 0
01:38
like no more fud. What does it say? You’re hunting libs.
Speaker: 2
01:41
No. Remember remember when, Tim Walz rolled out the camera
Speaker: 3
01:44
hat? Yes.
Speaker: 2
01:45
And you said it was gonna win the election for Harris County?
Speaker: 0
01:47
It might. It might. I thought that he might have a shot. Yes. No. I was wrong about that one. Be belly belly quiet.
Speaker: 2
01:53
We got all the camo guys. They voted for us.
Speaker: 0
01:55
Hunting wibbles. Nobody’s gonna get this, impersonation, but it’s very good. And listen to ai.
Speaker: 1
02:01
Is that
Speaker: 0
02:01
Elmer Fudd? That’s Elmer Fudd. Be belly belly quiet. We’re hunting liberals.
Speaker: 4
02:07
That sounds like Mike Tyson. Well,
Speaker: 0
02:09
I’m gonna mess up that Jake Paul.
Speaker: 2
02:13
How about I wear a different front pad every week for the next 4 years?
Speaker: 0
02:17
Absolutely fantastic. It’s I mean, the ratings on this show ones. Ai mean, all I care about at this point, I’m getting savage in any way possible. All I care about is ratings now. Let’s
Speaker: 1
02:28
go. You’re fine.
Speaker: 0
02:29
MAGA, get in the comments. Let’s get these ratings up. And with us, of course, the CEO of Ohalo, Ohalo, David Freiberg. How are you doing, man, little buddy?
Speaker: 4
02:42
Thanks for having me again, Jayco. Thank
Speaker: 0
02:43
you. Ai. Well, it’s
Speaker: 2
02:44
good to
Speaker: 0
02:44
have you. Again. It’s good to be here. Yeah. How are you doing?
Speaker: 4
02:48
I’m chilling, man. You know? Just Nice
Speaker: 2
02:50
to be the executive producer to have you on the show.
Speaker: 0
02:53
Yes. Ai been executive producing here. Well, it’s, you know, always I am always thinking about your best interest. I was hearing a little I I heard you on a phone call before you said you had a perfect body. What was that in reference to? Ai you get a scan?
Speaker: 4
03:05
Go yeah. She makes me go to the dermatologist where they she examines your whole nude body to look for moles. So this morning, I went in early to the dermatologist. She examined it. She sai, perfect. I said
Speaker: 1
03:18
Does she have to wear sunglasses because you’re just so white? Like, it just like, it’s blindingly white.
Speaker: 0
03:23
Just Poor woman. Did she get hazard pay?
Speaker: 1
03:25
The poor that poor dermatologist. My god.
Speaker: 0
03:28
Oh, no.
Speaker: 4
03:28
Wait. Wait. She’s like she’s like, thank you for the experience.
Speaker: 0
03:31
But this is why we need to, in all seriousness, this is why, Saks, we have to legalize psychedelics. This poor woman has PTSD after that. We need to get her some
Speaker: 4
03:40
Get out of here. Meh out of here. It was a wonderful examination. She was thrilled.
Speaker: 0
03:44
I meh Alright. Okay. And, of course, I’m Jason Calacanis. And, you know, there’s been a lot of scuttlebutt Sachs. I don’t know if you know this, but, comedy might still be legal here on the oil and pocalypse. But there’s been a lot of scuttlebutt, a lot of debate, a lot of energy, dare I say, around
Speaker: 1
04:01
Are we gonna break the rules today, finally?
Speaker: 0
04:04
Sai don’t know. We’ll see. Anything’s possible. People get a little sensitive sometimes with the comedy.
Speaker: 1
04:08
Do I have to put my pronouns back in my Zoom chat and piss off
Speaker: 0
04:11
my some pronouns back in Shabbat Palah Yeahpatea. Douche bag. Here we go. You you ai not know this, but a lot of appointments are being made, Sachs. Did you know this? Are you aware that the appointments are being made?
Speaker: 2
04:24
I’m aware. Yeah. Sounds great.
Speaker: 0
04:26
You have sai you’ve seen the flow of them. Well, I got a dump. I’m not gonna say who sent these to me, but I actually got the next 5 or 6 announcement that Trump’s gonna make. I’m not gonna say who gave it to me. Oh, my god. Kushner.
Speaker: 1
04:39
This sai been a this bit has the potential to be so good. I’m so tired, but you’ve got me awake. I’m Okay. Ai awake now.
Speaker: 0
04:47
I’m ready. Here’s our first one. Here’s our first one. This is a very interesting one. Good. Yeah. Here it is. This is a statement from Donald j Trump. It is my great honor to announce that under Biden of Delaware, we’ll head a new department, the Bureau of Founder Mode Procurement. Founder Mode Procurement.
Speaker: 0
05:02
You notice Sachs dropped off. He doesn’t sana to, have a reaction shot here. Next one up. This is interesting. Tony Hinchcliffe. I don’t know if you know him.
Speaker: 0
05:11
He has been appointed to a new role. He’s the ambassador to Puerto Rico.
Speaker: 1
05:15
Chamath. He’s he’s That’s
Speaker: 4
05:18
a good one.
Speaker: 0
05:19
Chamath, actually, your wish has come true. You are now your sole duty is to ensure all executive branch knitwear is on point. The sweater inspector general. Everybody’s gonna have perfect knitwear. Knitwear. Absolutely knitwear. And, I By the way, just
Speaker: 1
05:35
so you know, that’s a that’s a Laura Sana Cashmere sweater
Speaker: 0
05:38
in that picture. Apparently. Apparently. I’m actually decided I would flip. I’ve gone full MAGA. Here I am. Ai been appointed as chief virtue signaller.
Speaker: 2
05:47
That I like.
Speaker: 0
05:48
So That I like. Every time you’re
Speaker: 4
05:49
doing all
Speaker: 0
05:50
in podcast
Speaker: 1
05:50
You hear
Speaker: 2
05:51
me? You’re gonna have stiff competition from Mark Cuban for that for that post.
Speaker: 0
05:54
I know. I beat him out. I beat him out.
Speaker: 2
05:56
Well, I’ve been up to the knee. Yeah.
Speaker: 0
05:57
Yeah. I went down to Mark Well, he deleted it.
Speaker: 2
05:59
He deleted all of his pro Kamala tweets. Have you done the same?
Speaker: 0
06:04
No. No. I haven’t yet.
Speaker: 2
06:05
There you go.
Speaker: 0
06:05
But, that’s gonna be part
Speaker: 2
06:06
of the you’re gonna get this shah.
Speaker: 1
06:08
Look at the lusty eyes in this picture. Yeah.
Speaker: 0
06:10
I know. It’s pretty great. That’s the reality.
Speaker: 1
06:12
You really you you have there you have not found a virtue. You didn’t wanna just burrow yourself.
Speaker: 0
06:17
Absolutely not. Absolutely not. Hey, Freiberg. You’ve been appointed. Here we go. As Bobby Kennedy’s whipping boy,
Speaker: 4
06:25
and you will be
Speaker: 0
06:26
officially his little bitch. Anything any innovation you come up with is officially blocked. And here he is. My great honor to announce David Sacks is now the chief retribution officer. Congratulations. Well done.
Speaker: 2
06:42
Retribution must be had, J. Cal. A payback
Speaker: 0
06:46
is a bitch.
Speaker: 2
06:47
There were a lot of people who were out of line just a little bit a little bit. They deserved to get smacked out a little bit.
Speaker: 0
06:52
Just on Ram gonna get his shoeshine box?
Speaker: 2
06:54
Sun x a little bit. Just a little bit. You let your winners ride.
Speaker: 1
07:01
Rain man David Cyrus.
Speaker: 0
07:14
There’s been a a lot of talk about a holiday party. Freebree, you wanna get some update on holiday party?
Speaker: 4
07:19
Quick plug on the party. So the party is coming up in 3 weeks. The all in holiday spectacular, Steve Aoki, Andrea Botez, Gary Richards, Sana Destructo, are gonna be DJing several
Speaker: 0
07:31
of the ai. A secret DJ set.
Speaker: 4
07:36
I may. It’s actually a good idea. Oh,
Speaker: 1
07:37
they track the beat.
Speaker: 4
07:39
We will have chess challenges with Alex Botez. Several sections are sold out. VIP is sold out. Draymond’s joining us. Draymond Green. The Warriors. He’s gonna come and do a little bit with us on stage. It’d be great.
Speaker: 0
07:52
He’s great.
Speaker: 4
07:53
So it should be great. Get your tickets at allin.com/events. Alright.
Speaker: 0
07:58
Let’s get into it, everybody. I just wanna start with a a little bit of, finance here. Bitcoin and finance stocks way up since the Trump win, which was now 10 days ago. Bitcoin peaked at 92,000. Unbelievable. It’s dropped down to 89, but obviously that’s an all time high. And as we all know, we talked about it on the show, Trump heavily, heavily courted the crypto industry during his campaign.
Speaker: 0
08:26
In addition to the Bitcoin news, since early August, Affirm, Robinhood, PayPal, Coinbase, all up double or 50%. It’s an extraordinary run. In July, Trump headlined a Bitcoin conference. He laid out his plans. Number 1, he was gonna fire Sai chairman Gary Gensler. Here’s the clip.
Speaker: 3
08:48
On day 1, I will fire Gary Gensler and appoint a new SEC chairman.
Speaker: 1
09:01
Miss. Oh.
Speaker: 3
09:04
I didn’t know. Is that unpopular?
Speaker: 0
09:08
Iron. The fire. I
Speaker: 3
09:15
ai know he was that unpopular. Let me say it again. On day 1, I will fire Gary Gensler.
Speaker: 0
09:24
Woah. There it is. Okay. Enough with that. Technically, president can’t fire the SEC chair, but he can appoint a new one when Gary’s term ends in 2026, or Gary could resign when Trump takes office. That happens, sometimes. And folks are speculating Gensler has already made that decision to step down.
Speaker: 0
09:44
He put out a press release with a quote in it that a number of people took note of where he said it’s been a great honor to serve with them, the people who work at the SEC, doing the people’s work and ensuring our capital markets remain the best in the world. Trump also said the federal government will never sell, never ever sell its Bitcoin holdings, which they own through criminal assets, as you know.
Speaker: 0
10:08
And number 3, he said he would create a Bitcoin and crypto presidential advisory council where Trump said, quote, the rules will be written by people who love your industry, not hate your industry. And he also advocated that all future Bitcoins would be minted in America. I don’t know that he gets to make that choice, but, there you have it.
Speaker: 0
10:30
Freeberg, any thoughts here on the crypto market and this incredible bull run here we’ve seen in the last, you know, 10 days and then before that
Speaker: 4
10:40
couple of ai. I mean, I think like you said, it’s not limited to crypto. Crypto is one market of several that have been significantly affected by the outlook based on Trump’s election. I think that Trump’s election has a couple of key features that are changing market dynamics.
Speaker: 4
10:56
One is folks kind of view some of his policies to be obviously stimulatory with lower tax rates and more deregulation. This is, you know, theoretically gonna drive up investment and economic growth. The deregulatory nature on its own benefits markets that have been encumbered by regulatory oversight and regulatory challenges like crypto, finance, and Fintech.
Speaker: 4
11:20
So those types of businesses are are clearly gonna benefit or expected to benefit significantly by being able to launch products more quickly and have features and ways that they can generate revenue that they might be challenged to do under the current regulatory schemas. And then, there’s also this element of kind of things being inflationary, the the feature of tariffs. If we don’t get spending cut fast enough, there’s an effect on market.
Speaker: 4
11:43
So, you know, we’re still seeing 10 year treasury sit at about 4 a half percent up from 3 a half percent, which is where we were right around the rate cut beginning in September. And meh, since those rate cuts began in September, we’ve cut 75 basis points. And, and and we’re still seeing the ai of 10 year treasury hold ai, which in ai of implies that there’s expected to be persistent inflation.
Speaker: 4
12:04
In fact, the October inflation number accelerated again. So it’s back up, not going down. It’s I think it went up to 2.6 percent up from 2.3% the month prior. These general kind of effects that are predicted from the Trump policy plans is having an effect in different markets.
Speaker: 4
12:20
Obviously, in equities, we’re seeing more kind of risk seeking, risk taking. And then in the bond markets, because of the 4 a half percent treasury yield, there’s a really interesting ai. And and I I kinda sent this this link out, yesterday. But if you look at the spread on yields between US treasuries, which have historically been kind of considered and talked about and are deemed the the risk free rate and the yield that corporates have to pay to borrow money.
Speaker: 4
12:49
We haven’t seen a spread this low in 26 years. So it’s a 17 year low for the spread between the yield that companies that issue junk bonds have to pay from treasuries. And it’s a 26 year low for credit grade bonds. So this means the market is either more risk seeking, meaning they’re looking for more yield and they’re going into corporates because they feel like there is a higher probability that these companies are gonna be successful in the future.
Speaker: 4
13:18
They’re not gonna have higher default rates, etcetera. So the market is becoming much more risk seeking. Or the alternative is that parts of the market are reassessing the risk free nature of treasuries themselves. If spending doesn’t get under control, the treasury market appetite is decreasing.
Speaker: 4
13:34
So there’s this kind of spread that’s shrunk in the last couple of months. So we’re seeing capital flooding into the markets for risk seeking assets, and this is obviously affecting crypto equities and and bond markets all across the board. And we’ll talk a little bit about IPO and meh and a later.
Speaker: 0
13:48
Great. Chamath, your thoughts ai from yum yum?
Speaker: 1
13:53
I mean
Speaker: 0
13:54
Yum yum. You could say it. It’s a it’s a yummy. It’s gonna be a just saying.
Speaker: 1
13:59
No. I meh, look. What did I say at the beginning
Speaker: 4
14:02
of the year is gonna be
Speaker: 1
14:03
the biggest risk asset winning trade? Yeah. It’s great. Bitcoin’s great.
Speaker: 0
14:11
Oh my lord. I haven’t seen you this long, generally. What made you more happy? Getting to Milan and spending time with your white truffle dealer or watching Bitcoin break ai k, which one was more exciting for you, Carl?
Speaker: 1
14:28
You know, honestly, you know what I think about? I actually think about all the Bitcoin I sold. Oof. Yeah. You You know, Ai had
Speaker: 0
14:35
Bitcoin Sai
Speaker: 1
14:36
had a bunch of Bitcoin in my funds when I managed outside capital. You know, that’s a, I don’t know, a 3 or $4,000,000,000 mistake in growing now because my partners at the time capitulated, and I wanted to be a good team meh. And we distributed and it was profitable, but obviously Ai shouldn’t have sold it. Would’ve made them a lot more money.
Speaker: 1
14:59
And then I think about, like, I bought some land. Ai remember Tahoe. It was in the Wall Street Journal. I’m sure you can find it. But Yeah.
Speaker: 1
15:09
How much is that worth now? Probably a couple $100,000,000, maybe more.
Speaker: 0
15:14
Rough trade. Rough trade. But you you do have Bitcoin holding. Ai, can I ask you
Speaker: 4
15:18
a question? Why do you say sold Bitcoin as opposed to converted Bitcoin into dollars? Like, when you think about Bitcoin just as a as a participant, do you think about Bitcoin as a dollar denominated asset that you go and buy Bitcoin and then you’re eventually gonna sell it, turn it back into dollars, and use the dollars?
Speaker: 4
15:35
Or are you, like what do you think about the purest kind of idea that Bitcoin should be the de facto currency and store value in the future and the dollar doesn’t matter, and we shouldn’t necessarily be talking about the the value of Bitcoin in dollar denominated terms as something I’m gonna eventually turn it back into?
Speaker: 1
15:51
It hasn’t happened yet. And so until it happens, I think you have to view it as like a very good gold proxy, but it’s a largely dollar denominated asset.
Speaker: 4
16:08
Now why do you see it going the other way? Ai, so a lot of folks thought that as a safe haven, it should do well when there’s a negative economic outlook, but it has traded the last couple of years kind of the opposite.
Speaker: 1
16:19
No. It’s totally correlated. No. It’s totally it’s a totally correlated asset. I mean Yeah. There will be a point and it’s probably in our lifetime where it is an independent asset and a non speculative store of value. There will be that day, but that day is not now. And I think it’s very important to see the conditions on the field as they are versus what you wish it to be.
Speaker: 1
16:46
And, and the reason is that it allows you to risk manage more appropriately. Because if you don’t see it, then when something happens to the dollar complex, good or bad, or when something happens to rates, good or bad, or when something stimulative happens, good or bad, you’re not gonna react properly if you’re in the business of managing it as a risk asset.
Speaker: 1
17:09
So if you’re in the set it and forget it bucket and there are some people, I think it’s great none of these conversations matter. But like most people, you’re probably going to be motivated to do something. And I think if you’re motivated to do something or you have FOMO that stimulates you to do something, whatever the psychology is that leads you to action, it’s probably important to just view things as they really are versus how you wish them to be.
Speaker: 1
17:39
And so I think the purist may eventually be right. I think they will be right at some point in my lifetime, but they’re not right now. And that’s why these things are correlated.
Speaker: 0
17:49
If the market goes up.
Speaker: 1
17:51
The other thing I’ll say just broadly about the market is I think that there’s a tremendous amount of optimism about the economy. I think that’s why you see risk spreads get crushed.
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17:59
Definitely.
Speaker: 0
18:00
Yeah.
Speaker: 1
18:02
And I think that as long as we see the kind of prognostications that the Trump administration is putting out, I think people are going to be mostly bullish. I think the way that this trade turns around is when something actually breaks in terms of the inflation picture or in terms of the deficit picture.
Speaker: 1
18:24
And if those things look like going into 2025, that president Trump’s actions are not gonna be able to course correct it, then I think you’re gonna see people go massively risk off, which I think will not be great for markets, obviously. Ai right now, we’re not in that point.
Speaker: 4
18:42
And you don’t think the tenure reflects that already at 4 a half percent? I mean, that’s showing some degree of inflation and concern about the deficit. Right? It’s slightly
Speaker: 1
18:53
Yeah. Ai think I think the 10 year could be at 7%. Yeah. What does 4 a half percent mean? I mean, if you’re if you’re gonna run 8% of GDP level deficits for the next 4 or 5 or 6 years
Speaker: 0
19:09
Yeah.
Speaker: 1
19:10
You’re gonna have the 10 year at 7 to 8%. That’s just mathematical.
Speaker: 4
19:15
Right.
Speaker: 0
19:17
Sacks, your thoughts on, crypto before we get into IPOs and m and a, if any?
Speaker: 2
19:22
Yeah. Just on crypto, the house republicans already passed a framework for crypto regulation earlier this year. It actually got 71 democrats to to join it. It was called the Financial Innovation and Technology for the 21st Century Act or FIT 21, and it would classify digital assets like crypto as commodities regulated by the CFTC If the blockchain they run on is is, quote, functional and decentralized, that’s the key requirement.
Speaker: 2
19:49
If their blockchain is functional but not decentralized, then there would be concerted securities and fall into the purview of the SEC. I think the the crypto industry basically wants a really clear line for knowing when they’re a commodity and they want commodities to be governed, governed like all other commodities by the CFTC.
Speaker: 2
20:08
So that’s what the Republican bill would do. I think with the Republicans now winning the senate, the prospects for that bill to get enacted are now greatly improved, especially because Sherrod Brown, who used to run the banking committee, just lost to Bernie Moreno. This was a a seat in Ohio. Elizabeth Warren is still gonna object to this legislation, but she’s just gonna have way less influence.
Speaker: 2
20:33
And ai you said, it’s not clear that Gary Gensler’s gonna be sticking around very long at the SEC. Sai, look, the bottom line here is that I think that we are close to having clear rules of the road codified by congress, which is what the crypto industry’s been asking for. And the days of Gensler terrorizing crypto companies by issuing Wells notices without clarifying what the rules are that he is in in prosecuting, those days are about to be over.
Speaker: 2
20:58
So I think this is why the crypto markets are rallying.
Speaker: 0
21:03
And so to your point, if it’s centralized or partially centralized, you’re gonna be a security. If you’re decentralized, anybody can join the network. No one person controls the network. And I guess most people would consider that Bitcoin versus sai Ripple, which is partially decentralized but largely centralized and that’s going to be, I guess, the new rules of the road.
Speaker: 0
21:25
In addition to that, there are new rules that are being enforced that hopefully Ram
Speaker: 2
21:31
supports fit 21 passes. Right? This bill is called fit 21. But I think much, much higher likelihood that it or something like it now can get through the congress.
Speaker: 0
21:39
Sense. Yeah. And then there’s also legislation that’s already been enacted that’s there’s multiple ways and multiple paths, but accredited investors, There’s gonna be a path to becoming an accredited investor with a test. So that is something that is also on the docket. We’ll see if it happens. Let’s talk about Ai and M and A. Yum, yum, boys.
Speaker: 0
21:59
Just a level set here with the audience. Here’s the number of IPOs per year. And as you can see, the last 3 years have been some of the lowest since 2008 and 2009, the great recession, for those of you who are old enough to remember it. And if you look at VC, the number of distributions have been absolutely on the floor for the past 3 years.
Speaker: 0
22:26
In fact, if you look at the distributions from 2022 through 2024, those 3 years combined, it’s been around 200,000,000,000, which is less than 2019 in vatsal. And, with this year projected to be about a 100,000,000,000 in distributions, that’s about 14% of the peak ZURP era, when in 2021 we had $710,000,000,000 in distribution here.
Speaker: 0
22:53
So the backroom buzz is that Donnie from Queens is going to make M and A great again. Couple of reasons there. Sai, the wrath of Sana Khan’s coming to an end. Meh 7 sitting on massive amounts of cash and that cash is growing as people have laid people off and they’re focused on getting fit.
Speaker: 0
23:13
Obviously, we all know the Fed did another quarter point cut last speak. Although some people maybe don’t know that because it seems to have gotten lost in the election news. And psychologically, I think everybody’s feeling very optimistic. So maybe these IPOs are back on the menu. Chamath, I don’t know if you saw it, but Klarna just filed for their IPO. That’s a Swedish Fintech company.
Speaker: 0
23:35
They were kind of the pioneers in buy now, pay later. What are the other IPOs we could see? File in 2025. Databricks, Stripe, Wizz, Canva, Plaid, Rippling and Airtable. There’s a long shot that people have been buzzing about. I don’t have any inside information, but people have been speculating SpaceX could IPO Starlink, their Starlink unit.
Speaker: 0
23:56
And if you want to get really crazy, Chamath, maybe there’s a long shot that Sam Altman jumps the fence and decides he’s gonna take OpenAI public during this window that people expect to be opening. What do you think, Chamath? What’s gonna happen here in terms of meh and a and IPOs in 2025?
Speaker: 1
24:14
I think it’s gonna still be pretty subdued. Ai. I don’t I don’t think that you’re gonna see these crazy m and a deals that I think everybody is expecting. I also don’t anticipate a lot of these big companies going public, at least in the first half of the year. And the only reason I say that is I just think that like this year and the first half of next year, what’s the difference?
Speaker: 1
24:46
The IPO market is what the IPO market is. And if the 10 year is back to, you know, 4 and a half, ai, that’s not a compelling strategy for some Sai company or some internet business that didn’t take an opportunity to go public when rates were at 0. So if you just look mathematically at what the actual fair value of these companies should be, I don’t know. It’s not like such a great IPO market.
Speaker: 1
25:13
Then on the M and A side, if all you’re doing is waiting for Linacon to not be there, to me, I think that that betrays what M and A is supposed to be, which is you’re supposed to underwrite some industrial logic from first principles where things are very accretive and very accretive things should not hang by a thread on the emotional regulation or dysregulation of the FTC commissioner.
Speaker: 1
25:41
So I kind of think that you would have seen some of this stuff already as well if if the industrial logic was so high. And again, when rates are non trivially high, I just think that it’s not the easiest thing in the world to pull off like a really big M and A event, nor is it a really easy thing to pull off to pull off a huge IPO when Yeah.
Speaker: 1
26:00
But again, there’s a reason why Warren Buffett has $325,000,000,000 sitting in t bills making 4 and a half percent a year. He owns more t bills than the United States government. He’s making about $15,000,000,000 a year in interest. When you can do that with absolutely no risk, again, relative to stocks at least Yep. What is this IPO going to give you?
Speaker: 4
26:23
Chamot’s right. Like, the the 10 years at 4 a half percent, you’re basically paying 20 times cash flow to own a risk free bond, the US treasury bond.
Speaker: 1
26:32
Or you could pay 23 times to own the 30 times.
Speaker: 0
26:35
The asset.
Speaker: 4
26:35
Yeah. It’s 30 times to to own the S and P ai right now.
Speaker: 1
26:39
It’s nuts.
Speaker: 4
26:40
Yeah. It’s but but there is a lot of risk seeking shifting happening, Chamath. Right? Sai, I mean, we talked about, like, some of the crypto stuff, some of the Fintech stuff, deregulation shah the PE might seem high today. But if you forecast out 10 years for some of these businesses in a deregulated, de taxed environment or reduced tax, reduced regulation ai, that the earnings should accelerate in a way that outpaces the the multiple you’re getting today.
Speaker: 4
27:07
Right? Sai, I mean, this is part of why some of the Fintech companies are ripping right now, why some of the finance companies are ripping right now. If under Trump and the Republican control of the house and senate, laws don’t pass and regulations get reduced, theoretically, earnings are gonna rip and you should pay a higher multiple today because you’re actually buying these things at 8 to 10 times earnings 5 years from now.
Speaker: 4
27:28
So there seems to be some risk appetite there. But I do agree with Chamath on the m and a point. If you think about what’s going on over the last couple of years Hold
Speaker: 1
27:37
on a second. Can I ask you
Speaker: 0
27:38
a question? Do you think that
Speaker: 1
27:39
regulation is the reason why these SaaS companies have never made a dollar profit?
Speaker: 4
27:43
No. No. I’m not talking about SaaS. I’m not talking about SaaS. I’m talking I get what
Speaker: 1
27:47
you’re talking then you’re talking about industrial companies?
Speaker: 4
27:49
No. The Fintech market. Right? So we were talking about Fintech and some of these assets earlier. Some of these equities that have been written
Speaker: 1
27:57
It’s a very narrow part of the economy. Right? Like, if you look at broad like, on a broad based basis, the tens and tens of 1,000,000,000,000 of dollars of market cap that exist, I do agree with you that deregulation benefits a bunch of those companies, but it benefits sort of the non tech businesses more than the tech businesses.
Speaker: 1
28:17
The tech businesses right now are relatively lightly regulated. Yeah. I would think that it benefits pharma businesses. It benefits ag businesses. It benefits real estate companies.
Speaker: 1
28:26
It benefits a whole a whole swath of the economy, but we’ve started to see that rerating and maybe we’ll see a lot more. So maybe, Jason, the more nuanced answer to your question is the kind of meh and a that I think you wanna sai, that I mean, let’s face it, that we all wanna see here because we all have Yeah.
Speaker: 1
28:42
A vested interest, which is really specifically tech m and a. I don’t think that any of this deregulation particularly accelerates that. But maybe a more nuanced take on this would be that these other more regulated parts of the economy could do well and catch up to some of the earnings potential or the forward pricing of the tech businesses.
Speaker: 1
29:03
But again, now you get into this weird trade where you can buy steady cash flowing businesses that can grow in valuation as fast as a, as a fast growing, but money losing tech business, but then you trade both of those two things off and it has effectively the same yield as a 10 year, what do you do?
Speaker: 0
29:25
Yeah. Yeah. Ai, you know, I think there’s a lot of backed up inventory where venture capitalist boards and founders, people who control and make these decisions on m and a, if they would sell the company to a larger company, I think there’s a lot of exhaustion in the market, and that will drive the capitulation on valuation.
Speaker: 1
29:45
What are you
Speaker: 4
29:45
talking about?
Speaker: 1
29:46
What are the valuations will be? Yeah. Exactly. Yeah.
Speaker: 4
29:47
Why would
Speaker: 0
29:48
they be a large company for I’m watching it right now. I mean, do
Speaker: 1
29:51
you think Warren Buffett’s gonna take 325,000,000,000 of cash in No.
Speaker: 0
29:54
No. But I do I but I do the
Speaker: 1
29:56
ai his own stock. So what are you ai pay in terms of a multiple I
Speaker: 0
29:59
think it’ll be more like Salesforce or Microsoft or Google or Amazon getting off the sidelines because they’ve looked at it and said, you know what? The juice ain’t worth the squeeze. We might as well put our efforts and our capital into buying big hardware and building new products and services.
Speaker: 0
30:14
But if they think, hey. I got a chance of pulling this through. I’m sitting on all this cash. What if I hit another YouTube and Instagram, you know, really great acquisitions that were transformative for those two companies. Meta would not be where it is right now.
Speaker: 0
30:27
Facebook, you know that well, Ram. If they hadn’t gotten Ram, and certainly, you know Friedberg as an alumni of Google, if they didn’t get YouTube, it would be a completely different picture for that company right now. I think there’s a lot of those I just ai of acquisitions. Hold on.
Speaker: 0
30:40
Ai think there’s a lot of those acquisitions that have been sitting there waiting, and I’m watching the secondary markets. To your question, what’s the discount gonna be? The discount was last year. I kid you not. 70, 80, ai% off the last round for SaaS companies. And this year, it’s 20 or 30.
Speaker: 0
30:57
I’m seeing this when I’m getting offers to buy our shares in some private SaaS companies, some private Fintech companies. And then I also think if you’re a CEO and you watch Robinhood, Uber, Reddit, DoorDash, and Instacart, those ai have actually after getting a little bit of a ass kicking when they first went out, they have all rebounded massively.
Speaker: 0
31:21
And for the people who held on to their Reddit shares, Robinhood shares, Uber shares, they have been rewarded massively, massively for having faith in you know, through this storm. So I think those two things, the capitulation of all these boards and founders are gonna say, you know what? Let’s take the haircut.
Speaker: 0
31:38
Let’s go public, and let’s tell our story and and see if we can make it work as a public company. And then the people who feel one step weaker than that, I think they wanna cash their chips. And they’ve been in some of these investments, Chamath. It’s year 11, 12, 13, 14 for some of these private companies. There is capitulation on those boards. People are exhausted.
Speaker: 0
31:55
So that that I just I’m gonna get I’m gonna take the other side of the argument on this one.
Speaker: 4
31:59
I’ll kind of play along. So I think and I’ll disagree a little bit for a couple different reasons. These big tech companies, the ones that have had, you know, media businesses or because remember there’s tech that’s tech. Right? NVIDIA does not have a media business. But there’s been a conversation over the last couple of years where we need to break up big tech has been kind of part of the conversation with the Dems.
Speaker: 4
32:22
And now the Republicans are coming in and they’re saying the same thing. We gotta break up big tech. So there I think arya few of these companies, Google being one of them, that are very much handicapped right now with respect to what kind of meh and a they can do without dealing with the regulatory sledgehammer coming down on them.
Speaker: 4
32:39
So I don’t think that those guys are buyers, Jay Sai. I don’t think that Google’s in a place right now where they can go out and make a bunch of acquisitions. They’re gonna do everything they can to avoid the regulatory sledgehammer that’s coming their way. 1st, it was coming from the Dems. Now it’s coming from the new administration.
Speaker: 4
32:52
There’s a bunch of other companies, you know, that don’t really fit that bill. Like, Microsoft probably doesn’t fit that bill. NVIDIA, Adobe. Maybe they’ll make some acquisitions, but I don’t think it’s as simple as, well, we’ll sell vatsal low price. We’ll buy at a low price.
Speaker: 4
33:05
I’m just not sure they really need to do that right now. Agree with you.
Speaker: 1
33:08
I completely agree. I I think that these big tech companies will need to pay a pound of flesh for the deplatforming and the censorship that they did. And our scope is
Speaker: 0
33:22
a great ai if we’re gonna go to the political angle to bring you in, Sachs. What are the vibes? My perception is Trump likes to win, and Trump wants to see the economy soar. That is his platform. He’s a business guy. I think he wants to see fluidity. I know JD has been, not a fan of, like, the Googles, etcetera. So maybe you could help us navigate this. Who’s right here?
Speaker: 0
33:45
What’s the possibility of m and a becoming more vibrant in a Trump, administration?
Speaker: 2
33:51
Well, there’s no question that in general, president Trump wants to have the most vibrant economy we can have. And I think to that end, you’re gonna see the end of this era of deceleration, of regulatory capture, and lawfare. I think all those things are are over. I think that equities that have been straining or or tamped down under the weight of these abuses, you see them ripping now.
Speaker: 2
34:17
For example, Tesla, it’s gone from roughly 2.50 to 3.20 a share just since the election, and you could call that the lawfare discount. I mean, that basically is the discount on Tesla’s stock because the market was pricing in the risk of retaliation. If the Republicans lost, there’s a widespread belief that the democrats would go after Elon and his company. So you can actually measure the lawfare discount based on Tesla stock.
Speaker: 0
34:43
Regulation. Right? Because there’s a lot of regulations around self driving, rocket shah launches, all those things he’s involved in. There’s a lot of regulation shah you’re
Speaker: 2
34:50
There was this crazy thing where they they made some regulator made him put a headset on a speak. Did you see this? To test the effect on
Speaker: 0
34:58
seals of loud noises, the sonic booms?
Speaker: 2
34:58
The sonic booms. Yeah. This poor seal.
Speaker: 1
35:00
Do you see this poor seal have,
Speaker: 2
35:01
like, an headset? I don’t don’t do that to Freeberg. You Put the
Speaker: 0
35:04
Don’t know. Don’t put it on screen. Put it in post. Don’t put it on the screen. Don’t put it on
Speaker: 2
35:08
the screen.
Speaker: 0
35:09
Don’t put it on the screen.
Speaker: 4
35:09
It’s Freeberg is gonna Anyway,
Speaker: 2
35:14
so they subjected this poor seal to exactly the thing that they were worried would harm seals. In any event, the the seal seemed totally fine. It didn’t
Speaker: 0
35:22
They tortured seals to make a point. I got it. Yeah.
Speaker: 2
35:25
Anyway, it’s really crazy. So, yeah, look. Is crazy. This crazy?
Speaker: 0
35:28
What about this JD? Help us navigate I know JD’s the VP, and then you have Trump as the CEO. Chamoc pointed out maybe there’s a little on the GOP anger, resentment, residual because of the, you know, banning of Trump from YouTube and and some of these other platforms? Do you think that makes its way into m and a or not?
Speaker: 4
35:49
I guess, Sachs, like, let me be specific to J. Cal’s question. Not all tech companies are the same in that point of view. Right? Thank
Speaker: 0
35:55
you for switching it up. Yeah.
Speaker: 4
35:56
Tech M and A generally is a thing, but specifically the companies that have had social media platforms meh be kind of in a different lens from a regulatory perspective. Is that fair?
Speaker: 2
36:11
Yeah. I mean, look. I think that not everything Lena Khan did was bad. In fact, she definitely has some fans among the populist Republicans. And Yeah. You know, some of them who have spoken out on her behalf in various areas have been. JD Vance, Matt Gaetz as well. She did do some good things.
Speaker: 2
36:28
Specifically, she was willing to take on the big tech companies. I mean, companies like Amazon, Apple, Google, frankly, they just had a free ride for the last couple of decades where they were allowed to do anything. And she came in and said there’s a new sheriff in town, and she was actually willing to apply pressure on them to not engage in anti competitive tactics.
Speaker: 2
36:49
So I think she deserves credit for that. I think she did change the conversation. I think that we’ve talked about on previous pods that perhaps there was not as targeted and surgical an approach was used. Yeah. And as a result of that, it did have a chilling effect on m and a, and so it hurt the, you know, the small tech environment.
Speaker: 2
37:09
And so I think that we need to fix that part of it, but I hope that whoever replaces Lena Khan will continue to apply pressure to big tech because they are monopolies and they will abuse their power
Speaker: 1
37:20
if they’re allowed
Speaker: 2
37:21
to, and they need to be controlled.
Speaker: 1
37:23
Sachs, if you had to handicap the probability of a lawsuit or some kind of attempt to dismantle Google and Facebook? Would those be the 2 companies at the top of your list, and how would you handicap that?
Speaker: 2
37:45
So my view is that Google should be broken up. There’s abundant reasons for that. There’s at least 3 monopolies in that company. There’s the search business, the advertising business, and YouTube. I think they should be busted up. What are the odds that that happens? It’s hard to say, but what are the odds that that is pursued in the next administration in some capacity or at least investigated? I’d say high.
Speaker: 2
38:08
I’d say Facebook or Meta less so. I don’t see the compelling need to to bust them up. But quite frankly, I think the issue that Meta’s gonna face is just there were a lot of abuses in terms of censoring the free speech rights of Americans. Now I don’t think that was all the company’s idea. I think a lot of pressure was put on the company by the Biden administration.
Speaker: 2
38:34
I think they wanted to do the right thing and just didn’t show enough backbone. Think Elon’s
Speaker: 0
38:38
Zuckerberg’s been clear that he he writes it. Brexit.
Speaker: 2
38:41
Yeah. Sai I
Speaker: 0
38:42
guess spent the knee now. He’s like, listen. I ram I’m not gonna do it again.
Speaker: 2
38:45
Yeah. He published a letter and maybe it was done to some degree to inoculate himself against the result of this election, but I’d say to his credit, it wasn’t clear at all who’s gonna win the election when he put out that letter. And he basically said that he regretted the fact that Meta had gone along with the censorship request by the Biden administration, and he specifically referred to that whole Hunter Biden story that got censored in 2020 that was election interference.
Speaker: 2
39:11
It was a completely true story by the New York Post. It got censored by Big Tech at the request of these 51 former intelligence officials who were lying through their teeth claiming it was Russian disinformation. So he clearly regrets going along with that. In any event, I think there are better ways of handling the speech issue on social networks than busting up Facebook.
Speaker: 2
39:33
But I I I do think though that Congress should investigate or continue investigating what went wrong there and what exactly is the involvement of the intelligence community and the deep state in the censorship request that we saw exposed by the Twitter tyler. Meh?
Speaker: 1
39:52
Can I bring up something maybe tangential and you can react to this? Just speaking of kind of like censorship and then just the the media complex that we have. I saw today that Trump filed like a 10 or $15,000,000,000 lawsuit against the broadcast networks. And may, maybe this is old news, but I meh, and maybe I just saw the news now.
Speaker: 0
40:12
I saw a headline, go buy an x. I don’t,
Speaker: 1
40:14
I don’t Yeah. I saw one of those as well.
Speaker: 0
40:16
Yeah. Didn’t make ai doc.
Speaker: 1
40:17
And then separately with Bobby Kennedy’s nomination to HHS, one of the things that he has said that he wants to put an end to is the advertising that pharma does on these broadcast stations. If you put these two things together where you deprive these folks of their largest revenue source and at the same time they have to sort of like answer for censorship or manipulating content, it does, do you think that that changes the landscape of how all these companies behave in the future, or how do you think that that plays out?
Speaker: 2
40:52
Yeah. I mean, absolutely. So alright. Let’s take each one of those. So on the the broadcasters, and we’ve talked about this before, the big broadcast networks and their affiliates receive free spectrum licenses from the FCC, and they get some of the most valuable spectrum there is through those licenses in exchange for certain requirements that their broadcast are in the public interest.
Speaker: 2
41:15
Namely, they have to follow a fairness doctrine, which is supposed to mean that you give equal time to both candidates. Well, in the final weeks of this campaign, we saw some really egregious abuses. NBC brought on Kamala Harris, but not Donald Trump for a very favorable segment on Saturday Ai Live the week before the election.
Speaker: 2
41:33
Separately, you saw 60 Minutes deceptively edit an interview with Kamala Harris where they actually took one of her answers from one question and put it as the answer to another question. I mean, really deceptive. So you have a couple of examples with both CBS and NBC, which were violating the equal time ai.
Speaker: 2
41:54
We’re we’re clearly working on behalf of the Kamala Harris campaign. And when you look at the coverage itself, this election was the most unequal in terms of favorable coverage. It was something like a 60 point difference. So something like Kamala Kamala Harris received 80 something percent favorable coverage, and Trump received something like 85 percent negative coverage.
Speaker: 2
42:18
So it there’s no way Who’s
Speaker: 0
42:19
that according to? Do you know?
Speaker: 2
42:21
Yeah. There’s, it’s a report by Brent Bazel’s, media watchdog group. It’s been around forever, and it’s been recording this stuff in every election for the last 30 years. In any event, I think that there’s a very strong argument that the broadcasters have not been fair. That’s a violation of their license requirements, and we should be reevaluating their spectrum, especially because it’s not the highest best use of
Speaker: 0
42:43
spectrum anywhere. Of this though, Sachs, is that they have already been demolished. I don’t know if you saw, but a bunch of the anchors at CNN are not renewing because their advertising is so far off that ai, Chris Wallace, I think, was making 8,000,000 a year, 9,000,000 a year, and he just said, I’m gonna go do podcasts because they I think they lowballed his offer.
Speaker: 0
43:02
And if they lose
Speaker: 2
43:03
Well, there’s a bunch of
Speaker: 0
43:04
All that advertising from pharma, which I think in some of these networks is a third or half. And that’s all networks. That’s from Fox to CNN and every MSNBC, everybody combined. If they lose advertising from pharma, it’s over. Like, these those news networks are gonna lose half their revenue overnight.
Speaker: 0
43:22
That would be a that would be a death blow, Jamath, to your question.
Speaker: 2
43:26
Yeah. Well, let me let me get back to that. So so just on CNN and MSNBC, you’re absolutely right that they’re announcing a bunch of layoffs. Their ratings are destroyed. I think they’re down. MSNBC ratings are down ai 50% since the election. What that tells me is that their own audience
Speaker: 1
43:40
Wait. Arya. Since the election,
Speaker: 2
43:41
they’re down 50%. Yeah. And what that Oh my god. What that tells me is that their captive viewer base who’s been tuning in for years to all of this TDS have has now realized that they were deceived by Speak, and they’ve lost credibility even with their most fervent supporters.
Speaker: 2
43:57
So there’s no question that CNN, MSNBC, they’re hurting. Now J CAL, just to make one small modification, they do not receive they do not have speak licenses from the FCC, FCC. Right? Because Their
Speaker: 0
44:07
cable.
Speaker: 2
44:07
Their cable network. So they’re in kind of a different bucket. They don’t have to ai by the fairness doctrine that CBS and NBC do. Right? But they have different problems. And to your point about pharma, there’s absolutely no reason to be allowing pharma advertisements on these, TV networks.
Speaker: 2
44:27
The fact of the matter is the people who are viewing, those networks can’t buy you can’t buy pharmaceuticals without a prescription. Right? It’s up to doctors to write you the prescription. And this is why most countries, most Western countries prohibit pharma advertising on the networks.
Speaker: 2
44:44
And I think Bobby Kennedy has a very strong argument that it would serve the public interest not to allow this. We don’t allow advertisements for tobacco. Right?
Speaker: 0
44:55
So I guess the thing that doesn’t make sense to me, Sachs, is you’re so such a first meh absolutist sana free speech absolutist. Isn’t it? And I’m not saying this is my opinion, but, you know, my my challenge to you would be is tell me about freedom of speech and expression in relation to being able to do advertising for these problems.
Speaker: 2
45:18
Well, I mean
Speaker: 0
45:19
Aren’t aren’t consumers smart enough to figure it out?
Speaker: 2
45:22
The point of the advertising is I think is not, at the end of the day, to influence consumers because consumers can’t buy pharmaceuticals. They have to go to the doctor.
Speaker: 0
45:29
Ai it. Ask your doctor about it.
Speaker: 2
45:32
The purpose of the advertising is to buy favorable coverage. That’s the point. And there are many examples Okay.
Speaker: 0
45:38
Explain that. Explain that.
Speaker: 2
45:39
Well, there are many examples of people who’ve worked in these networks saying that they had a story that was negative about pharma companies, and that story got spiked because the pharma companies are the biggest advertisers. In fact, I think it was there’s a story about Fox News and who who who’s the ai, Roger Ailes?
Speaker: 0
45:59
Well, there’s been a number of stories. I know what you’re talking about. There’s been stories about Anderson Cooper. Who’s the the the guy who does international coverage on the weekends? GPS is the name of his show. I’m drawing I can’t remember right now.
Speaker: 1
46:12
Fareed Zakaria.
Speaker: 0
46:14
Thank you. Fareed Zakaria. Yes. I think a bunch of those shows were, like, literally brought to you by Pfizer, brought to you by these things. And so those shows potentially would just go away. And then there were there was reporting on the number of times they would report on those companies, and it showed they didn’t.
Speaker: 0
46:30
So what what do you think, Friberg, of should pharma companies be allowed to advertise to consumers to ask their doctors to ask them about Viagra?
Speaker: 1
46:42
What’s your take?
Speaker: 0
46:46
He’s thinking for those of you at home listening. He’s he’s giving a deep thought.
Speaker: 2
46:51
While he’s thinking, Jacob, let me just say Yeah. Please. I think I think there is there is a free speech issue that that has to be weighed. Okay? So I don’t wanna be totally dismissive of that. However, I think that the Viagra example is a is on the, like, far end of the spectrum of a drug that by, you know, by advertising it, you could actually get consumers to request it from their doctor.
Speaker: 2
47:11
I don’t think most drugs are like vatsal. And I think my contention would be that the real reason they’re paying all this massive advertising is not to influence consumers, but to influence the coverage that they get. And there is something very corrupt about that. And I think that Bobby Kennedy has a really strong point that if you were to remove that incentive that many people inside the industry have admitted exists, then you would get much fairer coverage of these pharma companies, and we had actually get to be a healthier country because you wouldn’t allow them to basically manipulate the public debate.
Speaker: 2
47:45
So that that’s the argument.
Speaker: 0
47:50
Friberg, you wanna chime in on it or no?
Speaker: 4
47:52
I I I mean, I feel like there’s some market correction that takes place here, which we’re already seeing, which is the consumers are moving away. We just talked about moving away from cable news, moving away from legacy media. They don’t trust it. The trust is at an all time low.
Speaker: 4
48:09
I don’t know if it’s necessarily the government’s job to determine who advertises what, where, how, and why. I don’t like the government having that sort of degree of authority, generally speaking, because it can then lead into the government having overreach and oversight to control entities that maybe are competitive with the government in different ways.
Speaker: 4
48:29
I do believe that the the beef with big tech is a result of big tech’s influence over the population where big government wants to have that degree of influence over the population. So it’s actually a battle between government and private entities over who can influence the population and who has the ability to control the narrative.
Speaker: 4
48:50
And I think that the general concept that the government should be determining who advertises where, what, how, and why is not a great one. And I don’t think that consumers are dumb. I think that consumers are showing their proclivity for independent media and independent news sources because they don’t trust the influence that’s been kind of imparted upon these other channels and these other sources, and they’re moving away from it.
Speaker: 4
49:13
So I don’t know if it’s as much kind of a regulatory question and big pharma needs to be affected. I I think that the market to to some degree does its job. I don’t think that consumers are dumb. I will also just kind of counter one of Sacks’ points. I I think that there are drugs, ai, multiple sclerosis is a good example.
Speaker: 4
49:30
There was a drug introduced a couple years ago called OCREVUS, and it was a new therapy for for multiple sclerosis that is extremely effective. It it’s a it’s a really a big step change in in biological therapies. And a lot of people that were on MS and have had MS for decades take kind of old school old school drugs that maybe aren’t that effective.
Speaker: 4
49:51
So to create awareness, and they’re not regularly seeing their doctors. They may not go in and see their doctor every year like they’re supposed to. So the the pharma companies are creating awareness that there’s this new modality and this new product that could help them to get them to go into the doctor’s office.
Speaker: 4
50:04
Ai I you know, so I I don’t wanna say that these are all, like, evil, you know, trying to control and influence. Like, there are good drugs that come to market. They’re beneficial to people, and people don’t know about them. How else are they supposed to get that word out if they’re not able to advertise?
Speaker: 4
50:16
So I don’t think that it’s all, like, negative and all malicious, you know, kind of behavior and manipulation of media. People we all have the resources. We all have the capacity, and we are all likely very frequently going to doctors. Most people don’t. And so most people that have chronic disease or have health issues, there there has to be a mechanism for, you know, making them aware of new options, new alternatives, new products that are coming to market.
Speaker: 4
50:40
So I’m not super, like, putting my foot down saying pharma companies shouldn’t be able to advertise, shouldn’t be able to buy media out there and and put ads up and tell people about stuff that they’ve discovered or that they’ve invented, that’s been regulated, that’s been tested, that’s been approved, and that works and can help save lives.
Speaker: 4
50:55
I think they should have the freedom and ability to do that. So I think there’s a there’s a bit of a nuance here to how this gets handled is my point.
Speaker: 2
51:02
Yeah. I mean, look, I I I’m not saying that there’s no benefit at all to letting pharma companies advertise some products. I think the question you have to ask is, why is so much money going from pharma to these news outlets? Because most of the products, you know, that you generally can’t buy them.
Speaker: 4
51:23
I’ll tell you the reason. The reason is that the pharma companies make so much money off of government funded insurance programs. Let me just state that again. If we only had private insurance or if consumers had to pay for their drugs and their therapies themselves, the cost of drugs would go way down.
Speaker: 4
51:39
The reason the cost of drugs has gone way up is because so much of the government insurance programs don’t negotiate drug prices. And there are all these middlemen and all these people that sit in between that have been regulated through regulatory capture into the system that has allowed an incredible inflation in the cost of drug prices.
Speaker: 4
51:57
Therefore, there is a lot of money to kind of continue the capture of the system. I don’t think that it is right. And I think that the free market generally or having a less regulatory captured market will allow an appropriate kind of pricing of therapies, an appropriate kind of adjustment in the market, which doesn’t exist today.
Speaker: 4
52:15
So so much money to kind of keep the market the way it is, needs to kinda keep flowing. That’s my sense of this. It’s it’s I don’t think it’s about bad drugs need to ai of stay in play as much as it is. This market’s been allowed to inflate, and the cost of health care and the cost of drugs has inflated in a way that’s simply untenable.
Speaker: 4
52:31
And it doesn’t make sense, and I think that it’s because of regulatory capture. And I think that that needs to change. And I’m hopeful that that that it does.
Speaker: 2
52:39
That’s the second reason then to get the this pharma money out of advertising because you’re basically explaining it as ai a self looking ice cream cone. But, again, there’s another reason as well, I think, that explains the sheer magnitude, which is its influence buying. It’s influence peddling.
Speaker: 0
52:55
To your point, Sai, I was that was what I was about to bring up. You know, there it’s very subtle. You’re not gonna have somebody at NBC or CNN or Fox come down and tell Tucker Carlson or Rachel Maddow or Anderson Cooper, hey, you can’t cover this story. But there is a bunch of self censorship that occurs, I believe, where people just don’t select certain stories to be on the docket, and they just shape the coverage.
Speaker: 0
53:22
So they might not say something positive or negative about Pfizer or Johnson and Johnson, whoever it is. They they’ll just avoid that story because these anchors are getting paid or have been previously paid 10,000,000, 25,000,000 a year. Do you think they’re going to, like, really go hard at Pfizer or somebody like that? No. They’re just not going to. I’ve been inside the machine.
Speaker: 0
53:45
They just avoid those stories. Okay. Let’s keep going through the docket here. I think that was a pretty good conversation. And Ai I by the way, I just wanted to say to the Trump administration, if you want the economy to rip, let m and a rip.
Speaker: 0
53:59
But my one caveat is there’s a really simple way to do this. If you’re under a $1,000,000,000,000 valuation, let those companies buy and sell each other because then we could go from a meh 7 to a mag 70. That’s where I think actually it makes the most sense. If you actually are concerned about the consolidation of power in the top 7, let them sit out acquiring more great companies, and let the people under that, who are the mid market cap companies, let them do the buying and selling because then you might have a Meh 8, 9, 10 show up.
Speaker: 0
54:27
That’s not talking ai book. It would be better for me, Friedberg, to let the Mag 7 participate because they can pay higher prices. They’re not price sensitive. But I do think the mid market companies buying and selling would make a healthier environment for competition.
Speaker: 4
54:41
So you think it sorry. You think it creates more competition, which will that’ll benefit consumers and grow the economy?
Speaker: 0
54:47
Well, look at it this way. If somebody wants to buy let’s say Waymo gets spun out. Somebody wants to buy it. If Amazon can’t buy it and Tesla can’t buy it and Amazon can’t buy it, but they could merge with Uber, Lyft, DoorDash, you know, all those mid Airbnb, if those companies could consolidate, can you imagine what would happen if Amazon couldn’t buy those companies, but you could see Waymo spin out and then partner with DoorDash and partner with Airbnb and you had that as one company?
Speaker: 0
55:18
Now you got a $400,000,000,000 company that is nipping on the heels, that is aggressively competing with Amazon. That’s what you want in the market is more competition for the Meh 7. You don’t want the Magnificent 7 to run away with it. And we could create the 8th, 9th, and 10th. So just imagine that, FreeBird, if there was a a another $1,000,000,000,000 company.
Speaker: 0
55:37
Like, I actually, I think Tesla just became a $1,000,000,000,000 company again. So now that they’re up in those ranks, great. Don’t let Tesla, don’t let Amazon, etcetera, NVIDIA buy more companies. Let those that mergers and acquisitions and that strength happen under the $1,000,000,000,000 mark.
Speaker: 0
55:52
What what do you think of that general concept, Freebur?
Speaker: 4
55:56
Yeah. I generally think competition is good. I generally think free arya should be allowed to operate, and I’ve shared my point of view. I think bigger is gonna drive more innovation than lots of little. So Okay. Again, Waymo wouldn’t exist if not for Google plowing 1,000,000,000 and 1,000,000.
Speaker: 4
56:10
And I don’t know about you guys. I took Waymo around the city yesterday. Pretty sick. Like, it is legit.
Speaker: 1
56:16
I don’t go to the city.
Speaker: 4
56:17
Yeah. Oh, it’s pretty legit. And, I I think that’s a toxic cesspool. And, by the way, I will say my other comment is I think San Francisco has gotten 10 x better now that I’ve been working downtown the last week or 2.
Speaker: 1
56:32
10x is better from a talk success pool just being a success pool.
Speaker: 4
56:36
I think part of the fact part of the reason is all of Walgreens is gone. There’s no there’s no Walgreens left.
Speaker: 0
56:41
You can’t buy deodorant. It’s problem solved. There’s nowhere
Speaker: 4
56:44
to do crime anymore. I know.
Speaker: 0
56:45
Buy toiletries. A drugstore that doesn’t exist. San
Speaker: 1
56:47
Francisco. How do you do that? You gotta
Speaker: 4
56:50
ask Jason. Jason, how do
Speaker: 0
56:51
you buy
Speaker: 4
56:51
with it?
Speaker: 2
56:52
Get an Amazon package delivered.
Speaker: 0
56:54
Yeah. I don’t hey, man. I’m in Texas. You can do whatever you want here.
Speaker: 2
56:58
Wait a second. Sai there’s
Speaker: 4
56:59
new Jason gets his supplies air dropped in once a month. What are you talking about?
Speaker: 2
57:03
I’m bullish on the San Francisco turnaround because I think Daniel Daniel Leary getting elected mayor was huge, and this doesn’t get really as much attention, but it’s very important.
Speaker: 4
57:12
The board shifted.
Speaker: 2
57:13
The radicals got voted off the board of supervisors. So
Speaker: 4
57:17
The board of supervisors are less progressive. Daniel’s in the mayoral office. It Good progress. And I think I think the city’s already, like, turning around. I’ve been super blown away the last couple of weeks Ai been downtown. I’m like, why am I not working downtown every day? It’s actually really nice.
Speaker: 4
57:31
It feels like San Francisco 20 years ago.
Speaker: 0
57:33
Let’s sai
Speaker: 4
57:33
the safety. Yeah. Yeah.
Speaker: 0
57:35
I mean, safety is the number one thing. If if they can
Speaker: 4
57:37
And this budget is already gonna be put under control. Sai Francisco spends 1 and a half x per cap capita of what New York City speak, and that’s something that Daniel and his team have kind of said they’re gonna address sort of ai their own doge. And there’s a team going in there to address this. So I’m really bullish on what’s gonna happen with the city. It’s just such a great place.
Speaker: 0
57:55
It seems like the power resides in the supervisors, and they seem to have flipped 2 or 3 of the really lunatic ones. Right, Sai? They got rid of Dopey Dum Preston. Who was the other guy?
Speaker: 2
58:05
Peskin.
Speaker: 0
58:06
Peskin. He was an idiot. And they those guys are done, so that’s progress.
Speaker: 4
58:11
Do you wanna talk about the Trump, candidates, Jayco?
Speaker: 0
58:14
Yeah. Let’s get to that in a second. But before we get to that, FBI raided the home of Polymarket CEO Shah Koechlin. He was on the election night stream. He was raided on Wednesday, November 13th, 8 days after the election. They say PolyMarket is Bloomberg, says PolyMarket is being investigated for allegedly accepting trades from Ram. S.-based users.
Speaker: 0
58:35
Here’s the backstory. In 2022, Poly Market paid 1,400,000 to settle a case with the CFTC for offering option contracts without proper designation. The Commodity Futures Trading Commission also ordered the company to prevent US traders from making bets. They recently said, Poly Arya, that is, that they had taken additional measures to block Americans from trading.
Speaker: 0
58:58
At the same time, Kalshi and Robinhood were able to offer presidential prediction markets because Kalshi, it seems like they won their lawsuit against the CFTC last month. So that allowed some betting markets to happen. But Polymarket is still banned from the US because of that settlement in 2022. Here’s the Polymarket claim.
Speaker: 0
59:15
They claim the raid was obviously political retribution by the outgoing administration against poly market for providing a market that correctly called the 2024 presidential election. And Shane posted on x, it’s discouraging that the current administration would seek a last ditch effort to go after companies they deem to be associated with political opponents.
Speaker: 0
59:35
Bunch of conspiracy theories flying around. Peter Thiel and founder of Fund have made an investment into the company, and Nate Silver is an ai. I guess Ai just point out to this.
Speaker: 2
59:48
Accurate. They’re much more accurate than
Speaker: 4
59:50
Nate Silver. Yeah.
Speaker: 2
59:51
And I’m not can it be if they got everything right?
Speaker: 0
59:55
Yeah. I mean, it that’s literally the point I was about to make, and, I’ll just end with this and then give it to you, Sachs, for red meat. Americans are not allowed to participate in a lot of different markets, and these kind of actions have been taken many, many, many times.
Speaker: 0
01:00:11
As we all know, poker, crypto, real estate, and prediction markets have all had actions like this taken against them, and they typically are a speak ticket.
Speaker: 1
01:00:20
The offices too or just his house?
Speaker: 0
01:00:22
Just his house according to the information we have right now.
Speaker: 2
01:00:26
They bust into his house at 6 AM, and they took his phone. Yes. By the way, shout out to No.
Speaker: 1
01:00:30
But, like like, if you were breaking the law, why wouldn’t they
Speaker: 0
01:00:35
all that TBD? Offices. Yeah. It’s a great great speculation. And important to note, this action came after the election is resolved. So it’s obvious the FBI knew that doing this beforehand would be seen as political and doing it after, I guess, the decision no. No. I heard what you’re saying.
Speaker: 0
01:00:54
I’m adding something else, which is they obviously knew this would be political, Sachs, and so they did it after. They knew if they did it before, that would be looked like, you know, really bad that the prediction mark that’s predicting Ram a Trump win was rated. So they did it after. What what do you think, Sachs? What’s going on? Okay.
Speaker: 2
01:01:11
I think
Speaker: 0
01:01:11
it’s free. Political or not, I guess, is the question.
Speaker: 2
01:01:13
We don’t know what was driving this. It’s certainly an extreme action to bust into someone’s home at 6 AM with the FBI and take take your phone. So it’s very curious. I think there’s 3 theories that I’ve heard that I think could explain this, and I wanna just be very clear that there’s no proof on any of this.
Speaker: 2
01:01:31
It’s just speculation. Yeah. It’s speak speculation. Everything’s alleging. Speculation. Yeah. Yeah.
Speaker: 2
01:01:36
But ai the way, just before I get into it, I think Shane Copeland had one of the funniest tweets I’ve ever seen.
Speaker: 0
01:01:40
New phone who
Speaker: 4
01:01:41
diss?
Speaker: 2
01:01:42
Yeah. New phone who diss? Nick, you should show them. I mean, that was, like, ballsy. The FBI busts in your house, takes your phone, and that’s the person you tweet.
Speaker: 0
01:01:50
This is a that means that this is probably not a serious situation. But, anyway, go ahead.
Speaker: 2
01:01:53
Well, who who knows? But Yeah.
Speaker: 0
01:01:56
Or he’s confident is ai I would say. Yeah.
Speaker: 2
01:01:58
Yeah. Okay. So theory number 1 is that what the feds are looking for is whether any domestic whales were illegally wagering on the election outcome because, theoretically, the money is all supposed to be offshore because domestic wagering on the election was illegal. However, a court ruled just days before the election that domestic wagering was legal.
Speaker: 2
01:02:22
So theory number 1 doesn’t really make a lot of sense because the FBI would be enforcing a a rule or a law that the courts had just overruled just days before the election. So but that’s theory number 1. Theory number 2, and this theory was raised by Fortune Magazine, is that this that poly market was rife with what’s called wash trading, which is a form of market manipulation where shares are bought and sold often simultaneously and repeatedly by the same people to create a false impression of volume and activity.
Speaker: 1
01:02:54
Of liquidity.
Speaker: 2
01:02:55
This is illegal in the US, and it does occur in crypto markets. So they could have been going after that, but, again, it does seem like a very extreme thing to bust into his house. Why don’t you just ask Shane
Speaker: 4
01:03:06
for the record of doing this hours? Would the US government have if it’s all offshore in that context?
Speaker: 2
01:03:12
I don’t know. I’m just laying out Ai laying out possible theories, but
Speaker: 0
01:03:15
Thank you.
Speaker: 2
01:03:15
Fortune Magazine did did raise that theory. But, again, if that’s what your claim is, just subpoena Poly Market during business hours. I don’t know why you need to raid the the guy’s home.
Speaker: 1
01:03:25
Or raid the office. Right. That’s where the files are.
Speaker: 2
01:03:27
Right. And now let me let me lay out theory number 3. Okay?
Speaker: 4
01:03:31
Oh, boy.
Speaker: 2
01:03:31
Which is gonna be a little bit more controversial. Here we go. But,
Speaker: 0
01:03:36
Get the tinfoil.
Speaker: 2
01:03:37
If if somebody was manipulating these sites, okay, then on whose behalf were they doing it? And what you’d have to say is that they were doing it on behalf of that Kamala campaign Because in the last few days of the election, there was a weird blip where Poly Market and and Saloni, especially, Kalshi even more than Poly Market, all of a sudden flipped to Kamala.
Speaker: 2
01:04:01
And you could see this particularly in Pennsylvania where all of a sudden there was a big flip at the end away from Trump towards Kamala that turned out to be totally fake, and Trump won Pennsylvania pretty pretty handily. And so you gotta wonder, well, wait a saloni. Was a Kamala supporter maybe trying to push the narrative that there was a last minute surge to Kamala?
Speaker: 2
01:04:23
Because that’s what the action seemed to imply. And remember that at the same time this was happening, there was a big there was ai a media push to create a narrative by her supporters in the media that there was a late break for Harris
Speaker: 4
01:04:38
Yes.
Speaker: 2
01:04:39
By independents. And so you have to kinda wonder, was somebody trying to push the prediction markets at the last minute to feed a media narrative that they were trying to create? Look. I have no evidence for this whatsoever, but the the action in the betting markets and the narrative they’re trying to create in the media do line up.
Speaker: 2
01:04:57
So if somebody was gonna investigate election manipulation, this is what they should look into.
Speaker: 0
01:05:02
Chamath, you have any thoughts here? No. Zero thoughts. I mean Yeah. You know, my thoughts on an error. I I don’t see him ever doing anything risky or illegal, so it makes no sense to me. I’m guessing that somebody made him aware, pure speculation, of something in the system, and that probably was on his phone and they probably wanted to get that.
Speaker: 0
01:05:25
And it’s probably ai a speeding ticket, ticky tacky thing. And you just have the law still working its way through the system because they, Sachs, were under an order to not take US, but Kalshi had gotten the mark the the law changed with their successful lawsuit, or they had defended their their case.
Speaker: 0
01:05:44
So I would say it’s all allegedly, folks, and so wait for more information is always a good idea. Alright. Trump is building his team, and, it’s a long list. We’ve got, I guess, dozens of names right now. So let’s start with the 4.
Speaker: 1
01:06:01
Who’s your favorite, Jacob? Well, my opinion probably
Speaker: 0
01:06:05
doesn’t matter all that much, but let me go with the 4 that, are creating the most buzz.
Speaker: 4
01:06:10
Thomas.
Speaker: 0
01:06:11
Let’s let’s create the let’s go with the 4 that are having the most buzz, and then I’ll let you each tell me what you think those are.
Speaker: 1
01:06:17
One candidate you
Speaker: 0
01:06:18
you love? The one I yeah. There is one, actually, I love. But let’s I’ll save that
Speaker: 1
01:06:23
for now. Who’s that? I’m curious, actually. I’m genuinely curious.
Speaker: 0
01:06:26
Vivek and Elon doing doge is my absolute favorite.
Speaker: 1
01:06:29
Yes. Anything else that I am
Speaker: 0
01:06:34
fascinated by Bobby Kennedy going in and trying to make the country healthier. And the country is the most sick country, I think, of, all of the western countries. And I think our food system has massive problems. So I’m very excited to see what he does inside of the health and human services department.
Speaker: 0
01:06:54
I think it’s a little bit controversial, obviously, but I don’t see how it could be any worse than what we currently have. How do you feel about that? Who’s your favorite? I guess we can just go with people’s favorites if you wanna go that way.
Speaker: 2
01:07:07
The way I interpret his cabinet picks is that he’s creating a coalition. So I view it more as like a package deal, J. Cal. I’m not gonna pick out 1 or 2, although I do have my favorites. The person who I think very astutely understands what Trump is trying to do is Charlie Kirk, who’s a major influencer on the Republican side.
Speaker: 2
01:07:26
And he says that that what MAHA, which is Make America Healthy, again, they get RFK, Bobby Kennedy, HHS, obviously. The libertarians get Tulsi at DNI. I would add to that that they also get Elon Vivek at Doge. The base, the populist base gets Macades. They get Hegseth at DOD. They get Hohmann.
Speaker: 2
01:07:47
And then the speak through projecting strength crowd, which is kind of a nice name for neocon, gets Rubio as secretary of state and Stefanik at the UN. So I think that Trump is basically trying to have his cabinet reflect the diversity of views within the Republican party. He’s not decisively choosing one side over another.
Speaker: 2
01:08:10
What this means is that during his presidency, he’s gonna get all the views and all the options Okay.
Speaker: 0
01:08:16
Within the party. Collective view. That’s an interesting way of adapting. Let’s go point by point through the most controversial ones. Matt Gaetz is obviously the most controversial at the journey. That’s what’s happening. Young. That’s another trend. Yeah. And he has, been put up as attorney general.
Speaker: 0
01:08:30
He has to be confirmed by the senate, obviously. He’s the house rep from Florida. Sachs, how qualified is he for this job on a scale of one to ten?
Speaker: 2
01:08:38
I think that Matt Gaetz would be a breath of fresh air at at DOJ. I mean, look.
Speaker: 4
01:08:43
Here’s Why is that?
Speaker: 2
01:08:45
The DOJ has been involved for the last 8 or 9 years in a completely fabricated effort to portray Donald Trump as an agent of the Russians. It started with the Steele dossier. They then opened an investigation based on that phony piece of opposition research funded by the Hillary campaign.
Speaker: 2
01:09:04
They lied to the FISA court to spy on Donald Trump’s campaign. They then worked with the various intelligence services and with, the media to create this, like, hoax that went on for years years. There’s been no accountability for that. Furthermore, in the 2020 election, you also had that effort to essentially cover up the Hunter Biden hard drive that the FBI and DOJ were sitting on that for roughly a year.
Speaker: 2
01:09:32
They created sai a phony story that it was Russian disinformation when it turned out to be completely authentic.
Speaker: 0
01:09:38
So you think you believe there’s a lot to clean up there? How qualified to see on a scale of 1 to 10?
Speaker: 2
01:09:42
What the president what the president ran on was that the DOJ needed to be deweaponized, that it had been turned into a partisan political apparatus for the Democrats. I don’t think anyone can argue with that at this point. I think the American people clearly bought into that argument.
Speaker: 2
01:10:00
Now in order to clean it up, you’re gonna have to bring in a total outsider who’s willing to break some eggs and shake things up. Is Matt Gaetz the only person who could do that? No. There there are other people who could do it, but Matt Gaetz is definitely qualified for that role.
Speaker: 2
01:10:13
He was one of the most outspoken critics in congress of this weaponization of the FBI. He was never fooled by the Russiagate hoax. Most the establishment was.
Speaker: 0
01:10:22
Any concerns?
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01:10:23
Anybody anybody who bought into the Russiagate hoax is not qualified to run the DOJ at this point.
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01:10:28
Okay. Any concerns?
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01:10:30
Well, there’s a bunch of unproven smears and accusations that have been made against him.
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01:10:34
Well, obviously that. Any other concerns about him?
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01:10:37
Excuse me?
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01:10:39
Aside from the the the investigations and whatever and
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01:10:41
the smears There’s a bunch of unproven Yeah. Smears and accusations were made against him. And my own view on that is that if there was really something there, I think Merrick Garland’s DOJ would have acted on it 2 or 3 years ago. So I personally discount all these smears without there being any evidence whatsoever.
Speaker: 2
01:11:00
And I think it’s very predictable that what we’re seeing with both Matt Gaetz and with Tulsi is that the worst accusations get made without any evidence in the media when the blob or the establishment wants to stop a true populist reformer from cleaning up their backyard.
Speaker: 0
01:11:17
Friberg, your thoughts on Matt Gaetz? I mean, that seems to be the most controversial one. Any concerns? Do you think he’s the most suited guy for the job?
Speaker: 4
01:11:24
I I don’t wanna comment on Matt Gaetz, but I’d like to talk about Why not? Because I’d like to talk about a broader point of view on it. Okay. So I think there’s this kind of thing that happens in biology called evolution. And a lot of people think evolution is this continuous process, but it’s not.
Speaker: 4
01:11:47
Evolution is this process by which there is some significant growth for a period of ai, and then there is an extinction event or an external force that causes what ultimately becomes what’s called punctuated equilibrium. So the whole kind of system resets, and then the healthier, stronger species survive and they grow and they persist.
Speaker: 4
01:12:07
And if you look at the first chart, Nick, that I pulled up, this will just show you guys past extinction events. Large amounts of biomass over the past half 1000000000 years get wiped out when these extinction events occur. And then evolution occurs because the species that can survive the extinction event persists in the environment and they grow.
Speaker: 4
01:12:29
And that’s how evolution kind of actually takes place is there’s an external force that changes what survives and what doesn’t. It’s kind of a testing force. If you look at federal spending, and this is a crazy link, but here’s federal spending over the last couple of decades.
Speaker: 4
01:12:44
And I would argue that many of the agencies, much of the bureaucracy, many of the jobs created, many of the spending programs, many of the operating models, many of the behaviors can kind of be viewed as a specie or species within this ecosystem that have kind of grown a lot over the last few decades.
Speaker: 4
01:13:04
And I think what Trump’s mandate was by the people, and people don’t wanna hear this and they don’t like it, but his mandate was to be kind of the extinction event. And whatever agencies, whatever operating processes, whatever individuals, whatever bureaucratic systems exist within the federal government that can withstand the scrutiny of the individuals that Trump is going to put in charge of each of these agencies, that they can survive and they can come out the other end, there is certainly some degree of strength and resilience and hardiness.
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01:13:35
This is not about right or wrong. This is
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01:13:38
a great to exist if they can survive.
Speaker: 4
01:13:40
Bring in this is gonna bring in the most disruptive force that federal agencies have ever seen. And the intention with Trump isn’t to find some person to keep running things the way they have been run-in the past. His mandate from the people who elected him based on the message he put out there is to do the opposite, which is to go in and be as disruptive and damaging and destructive as possible.
Speaker: 4
01:14:01
And whatever comes out the other side will be stronger, will be hardier, and theoretically, will be, you know, more resilient. And I think that that’s the event that’s underway. Now, the people who are getting exactly what they want in Trump’s candidacies are the Democrats.
Speaker: 4
01:14:19
They were saying Trump is gonna put a bunch of crazy lunatics in office and he’s gonna make them the cabinet and they’re gonna and they’re and now they’re able to kinda clap their hands and say, we told you so. We told you so. And I’m not sure that if they’re really getting the meh, which is that the intention here isn’t to keep things running the way they have been running, but to really fundamentally test the systems.
Speaker: 4
01:14:38
And test the systems with the most challenging oppositional forces the systems have ever been tested by, which is the candidates or the individuals that he’s putting in charge of each of these agencies. So I I’m not saying it’s right or wrong one way or the other. But I’m making an observation that this is gonna be kind of an extinction level event that Trump’s decisions on who he’s putting in place Ai think are gonna drive an outcome on the other end that’s gonna make the government look very different.
Speaker: 4
01:15:03
And I you know, I’m not gonna sit around and say this person’s good, this person’s bad because I don’t think the point is to find someone that’s quote qualified to do the job. The intention is actually quite different. And the outcome may actually be positive for America if you fast forward a couple of years in some cases.
Speaker: 4
01:15:17
And there’s some cases where things could get really messed up and people could suffer and jobs will be lost and all sorts of bad things will happen. But we cannot continue the way we have been with respect to federal spending with respect to federal spending, bureaucracy, and inefficiency in the federal government.
Speaker: 4
01:15:32
And so something has to happen. And if this is the path by which this gets resolved in the limited window that’s in front of this this particular administration, which is probably 2 years, maybe ram, maybe this is what has to happen.
Speaker: 0
01:15:44
Shabbat, where do you stand on Freeburg’s interesting metaphor here that we’re sending meteors into each of these departments to blow them up and see if they survive an extinction level event. I saw you nodding. Do you think this is, an interesting framing?
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01:16:00
Great take. I have nothing to add to Friedberg’s take.
Speaker: 0
01:16:03
Got it. Who’s your favorite?
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01:16:04
Yeah.
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01:16:05
You asked me the question. I answered. Who’s your favorite?
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01:16:07
Well, I think let’s take Elon and Vivek off the table because
Speaker: 0
01:16:11
That’s an obvious one that we all have been behind since the beginning. Yeah. Ai we know and we all support the idea. Who’s not against more efficiency? I mean, you have to be an idiot to be against efficiency. It’s, like, the easiest one to say you love. Ai mean, you have to be an idiot to be against efficiency. It’s, like, the easiest one to say you love.
Speaker: 0
01:16:21
I think the highest beta pick so far has been Bobby Kennedy. I think the 2nd
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01:16:21
highest beta pick is Matt Gaetz.
Speaker: 0
01:16:30
Explain ai highest beta pick in this context, please.
Speaker: 1
01:16:33
Sai think the 3rd is Tulsi Gabbard. That there is the potential for an enormously positive 2 or 3 Sigma outcome, but there’s also the chance that it can really not work.
Speaker: 0
01:16:49
That was exactly why I picked Bobby Kennedy because he’s gonna shake it up. Right.
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01:16:52
Peter Thiel just did this podcast with Bari Weiss and
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01:16:55
It was fantastic, by the way. Highly recommend.
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01:16:57
Highly recommend. He was awesome. Meh. The one of the great things he said is that he was talking about science, but I think the example works here as well, which is that we didn’t have enough skepticism and we had too much dogma. He was talking about sort of like the, the death of science.
Speaker: 1
01:17:14
And I think that that idea applies here as well, which is that the federal bureaucracy has not really been challenged. And Vivek put out a very compelling post on Exware. He basically sai, like, look, when you on the one hand, there’s gonna be radical transparency, but on the other hand, there’s a lot of case law that we can use to kind of try to really dismantle the government apparatus.
Speaker: 1
01:17:41
And they’re putting themselves on a shot clock to do it by 2026 for the 250th anniversary. So I think I’m really predisposed to this idea that it’ll force the government to be very resilient at the end of this process. And I think that’s a good thing. And it’ll probably be very different than what it is on the way in. And I think that that can be very positive.
Speaker: 0
01:18:07
Alright. So we got Chamath and myself actually giving some specific names that we thought were interesting. I’ll go back to you, Sachs. Maybe I’ll phrase it as to Chamath’s phrasing. Which one do you think has the greatest chance of creating a massive potential change that could be positive but also has some possibility of a disruptive downside?
Speaker: 0
01:18:28
In other words, it could go either way. But, man, if it goes the right way, it could be brilliant and amazing and great for all Americans. Who would be your number 1, number 2 in that regard?
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01:18:37
Well, you have to identify what the potential downside is. I think the single biggest risk in a second Trump term is that somehow the United States gets into an unnecessary war, a war that we don’t need another forever war. I I it’s certainly not what president Trump wants. He’s been abundantly clear on the campaign trail that he wants to avoid wars. He wants to avoid World War 3.
Speaker: 2
01:18:58
It’s clearly where all of his instincts are. But the fact of the matter is we have a very fraught and difficult international situation right now. The Middle East is on fire. We have a proxy war going on with Russia. So there is the chance that things could always spiral out of control.
Speaker: 2
01:19:13
And you need, I think, within the cabinet, not just hawkish voices, but also dovish voices so that the president has the full range of options at his disposal. And so in that sense, I would say that, you know, Tyler as being one of the more dovish voices is incredibly critical just to balance out some of the other voices who are more hawkish.
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01:19:34
And so in that sense, I think, you know, just making sure that the president gets to hear from a a wide spectrum of views, I think that that part’s very important.
Speaker: 0
01:19:45
So that would be Tulsi. Tulsi would be your pick for, like Yeah.
Speaker: 2
01:19:48
Just because, like, Tulsi could literally make the difference between whether we get in a a necessary forever war or not. I would also just say that with respect to the other picks, there’s obviously a lot of hysteria going on, a lot of hyperbole about the downsides. I don’t think it’s gonna be like a meteor hitting the earth. I don’t think it’s that destructive.
Speaker: 2
01:20:09
I think that it’s more ai, will some eggs be broken up to make an omelet? Right? That’s that’s the analogy I would use rather than the meteor. And the thing I would just say is that we all agree the United States is currently on an unsustainable fiscal path. We know that we’re spending too much money.
Speaker: 2
01:20:26
We know that the bureaucracy is too big. What’s the downside of shaking it up? There’s just way more upside than downside in terms of shaking up this bureaucracy.
Speaker: 0
01:20:35
Because the current path is bankruptcy.
Speaker: 2
01:20:37
Exactly. So why do we have to act like that it’s so risky to bring in outsiders of populists and reformers into these agencies. We know there’s gonna be huge resistance to them. The biggest risk, frankly, is inertia taking over and the reformers aren’t able to do enough and we all
Speaker: 0
01:20:56
Doing nothing is not an option. Yeah.
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01:20:58
And then we go bankrupt. That’s the big risk.
Speaker: 0
01:21:00
Why is Chelsea getting attacked? What’s the Russian connection? People are saying like, I don’t know I don’t know any of the history here, so tell me.
Speaker: 2
01:21:08
It’s obvious. It’s because Washington is a very hawkish place. It’s basically run by the war machine. There’s there’s no money going to Washington to lobby for peace. All the money in Washington is coming from the military industrial complex. So by definition, it’s extremely hawkish and it’s geared towards war.
Speaker: 2
01:21:27
And Is there some
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01:21:29
history with Tulsi and Russia? Yeah.
Speaker: 2
01:21:30
Just to finish my point. Yeah. Tulsi has been one of the few consistent voices advocating for peace. So of course, the establishment wants to basically get her nomination vetoed. But, again, I think you have to see the cabinet as a package deal. I think it’s very important to have Tawsy as one voice for peace within a larger cabinet that already has many hawkish voices. Got it.
Speaker: 0
01:21:52
Okay. Alright, everybody. For your sultan of science from Oholo, David Freiberg, the chairman, dictator, Chamath Palihapitiya from 80, 90, and David Sacks from Kraft Ventures. I am Jason Calacanis, your host here at the All In Podcast and This Week in Startups. We’ll see you next time on the All in Podcast. Bye bye.
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01:22:15
Back at you, chief retribution officer.
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01:22:19
What’s your name? Oh, you’ve heard some trouble.
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01:22:24
We’ll let your winners ride.
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01:22:27
Rain man David Sacks.
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01:22:31
And it said, we open sourced it to the fans, and they’ve just gone crazy with it.
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01:22:35
Love you, West.
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01:22:35
I Sweet.
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01:22:36
Sweet of kin wab.
Speaker: 1
01:22:54
We should all just get a room and just have one big, huge orgy because they’re all just useless. It’s like this, like, sexual tension, and we just need to release them out.
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01:23:02
Let your Let your feet. Let your
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01:23:05
feet. Your feet.
