Warner Bros Bidding War & Musk’s Retirement Warning | PBD #741

Patrick Bet-David, Anthony Pompliano, Jeff Snider and Brandon Aceto break down Zohran Mamdani’s $127B NYC budget proposal, Warner Bros. Discovery leadership turmoil and Hollywood shakeups, and Elon Musk’s retirement warning tied to AI automation, Tesla, and the future of the workforce. ------ ♟️ SALES LEADERSHIP SUMMIT 2026: https://bit.ly/45Evtj4 📺 JEFF SNIDER'S EURODOLLAR UNIVERSITY: https://bit.ly/4i5uz3W 💻 ANTHONY POMPLIANO'S CFO SILVIA: https://bit.ly/3OltsCu Ⓜ️ MINNECT WITH JEFF SNIDER: https://bit.ly/4c27s9x Ⓜ️ MINNECT WITH ANTHONY POMPLIANO: https://bit.ly/4aBgFTU Ⓜ️ MINNECT WITH BRANDON ACETO: https://bit.ly/4anHnR3

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:14Speaker 00

  My handshake is better than anything I ever signs, right here. You are a one of one? My son's right there. I don't think I've ever said this before.

• 0:27Patrick Bet-David?

  This is what you missed. The podcast was already started. A big fight broke out over Disney, Paramount, or YouTube, where Time Warner should go to. Jeff got angry because Tom's not here today. And shout out to Tom who's in Vegas, representing the Future Looks Bright shoes at the Magic Show. And then we're going to Italy at the Mykam Show as well, which is gonna be great, exciting. We'll give you an update on that. But we've got a lot of stories to talk about today. We got three brilliant minds again with us. Pom Snyder and Aceto is in the house with the stories that we have. We may go with the first one. Elon Musk says retirement may be a thing that we have to get rid of. Like, I don't even think if retirement's a real thing or not. And there's

• 1:10Patrick Bet-David?

  a clip on it. M'Donnie, this noble man, this sweetheart of a man, Pom wrote a long email to him, long tweet to him. And Pom, I'm gonna come to you because you're a New York guy. He said they are forced, forced in New York, because Hoco's not working with them, to tap into the defined, the retirement plan of the New York City. Can you imagine? The word he was, because of everything that's going on our hands, we're forced. We would never do this, but we're forced. You gotta love communist.

• 1:41Speaker 02

  Does that mean he's on the same page as Elon Musk? They're just gonna eliminate retirement together?

• 1:45Patrick Bet-David?

  Two different ways. But, you know, you love communists because when they campaign, they talk about, you know, how bad force is. And then when they win elections, all they wanna do is force. So, it is what it is. Jesse Jackson, charismatic champion of civil rights, died at 84. May he rest in peace.

• 2:04Patrick Bet-David?

  The whole thing with CBS and Stephen Colbert, they took the interview down. They didn't want it to be up. Is it a true story? Or was it a, you know, spectacle? Because maybe Colbert doesn't like the fact that Jimmy Kimmel got all that love from the hate and the backlash. Maybe he's trying to create it. Maybe he's watching what happened with Don Lemon having record-breaking followership and his, what do you call it? Substack, you know, subscribers going up. He's like, "Man, I want to get some hate. Can you cancel me so I can come out and say you can't cancel me?" And then an email comes out saying CBS said, "You just have to make sure you give the right amount of time to the other side." But that's not what he wanted you to see, and we'll talk about that. Side note, we won't get into this, but apparently there's a fight going on with Rondo, Razzie and Gina Carano.

• 2:49Patrick Bet-David?

  We'll see how that goes. We will talk about Mamdani. We will talk about Palantir moving its headquarters to Denver, to Miami. So that's a lot of engineers coming this way. Trump says Japan to invest in energy industrial projects in Ohio, Texas and Georgia. Berkshire Hathaway, we kind of talked about this in the back. I don't know what Palm's position is going to be with this. Berkshire Hathaway invests in New York Times and trims Apple. So they're more pro-New York Times and less Apple. Very weird. You would go this way, but not Apple. I'm curious to know what you guys are thinking about that. VIX surges 18% to 20.82 as inflation surprised and Fed transition sparks market reassessment.

• 3:35Patrick Bet-David?

  Vance, a little concerned about what's going on with Anthropic. Obviously Elon made some comments about it, so did Hexit. So Elon, Hexit and Vance, they're kind of on the same page when it comes down to Anthropic. We'll talk about that. Logan Paul sells a record-breaking card for $16.4 million. This Pikachu Illustrator sold for more than any Mickey Mantle card ever. Which, by the way, you know what that means, and it's not good. But it's great if you own the cards. That means the market just, the comps went up like this a little bit, right? So you can't go and negotiate a deal right now because anybody who had a card, guess what they're going to say? "Well, did you see how the Pikachu's?" That means this card is worth this, and they're going to make those kinds of arguments. So we'll see. We'll see what happened there. McDonald's, folks, some good news for some of you guys.

• 4:20Patrick Bet-David?

  Very small percentage of the audience that consumes this content is testing GLP-1 friendly menus.

• 4:27Patrick Bet-David?

  As Ozempic patients seek out protein packed meals weird because McDonald's had a record breaking quarter apparently they were up 8.6% or 6.8% while Wendy's is shutting places down don't know why maybe we'll find out here from some folks on why that is so then Gen Z locked out a home buying puts in money in the markets this new video did you guys see the Brad Pitt and Tom Cruise video did you Jeff did you see this video have you seen this video yet or not no have you seen a pop I love the fact that you haven't seen it because you're gonna see it for the first time okay it is so real then there's another movie that they made did you see the movie they made a 200 million dollar production movie that they made in a day all

• 5:10Patrick Bet-David?

  because of AI this is a very different direction that we're gonna be going we'll talk about obviously paramount and then we got a few other things you know China Alibaba and BYD have links to Chinese military US concludes a shout out to Hermès CEO a lot of people are getting criticized right now for being on the Epstein files I think there's a good story here that we should give respect to a CEO that did it right and then let me see what else we got here we'll cover that this this one story farming farmers are aging and their kids don't want to be in a family business little scary but we may hit up that story as well and then Waymo is paying DoorDash gig workers to close the robot taxi doors can you imagine hey can you close that door we'll give you five bucks

• 5:53Patrick Bet-David?

  Uber gets out yeah boom all right you got paid five bucks you have to get out you don't know

• 5:58Speaker 03

  just drive by roll down the window

• 5:59Patrick Bet-David?

  that is wild that that is happening but anyways with that being said gang before we get into the stories we have our annual sales leadership summit that is coming up this year we're doing it at the Trump Doral I went to the property the other day unbelievably beautiful property and if you're a salesperson or a sales leader or a CEO that wants to drive sales and find superstars and develop superstars Rob play that clip that you have I think Alicia send it to you Go right ahead buddy. I got a question for you. Which of these two skillsets guarantees success more? You being able to recruit rock stars, eights and nines, coming in talented and they change the company overnight? Or two, you knowing how to develop rock stars? Which of these two guarantees success?

• 6:44Patrick Bet-David?

  From my experience, when I was not a rock star and I got lucky and I recruited a rock star, I could never keep the rock star. Eventually, I obsessed over developing people to succeed in sales. Once I did that, all the rock stars started knocking on the doors because they wanted to work with me. This is why once a year, I host an event called the Sales Leadership Summit. This year, we're doing it March 25th through the 27th at Trump Doral. If you want to find out how you and your team can attend this event to learn how to become better sales leaders, click on a link below, fill out your information, one of our consultants will get ahold of you. There you go, Rob. That's the QR code and we're gonna put the link below. Rob, if you can put the link below as well for people to go learn more about it and fill out the information.

• 7:28Patrick Bet-David?

  One of our representatives will call you and answer any questions you may have about the event. And hopefully, we'll see you there, March 25th to the 27th at the Trump Doral. Having said that, let's get right into it. Okay. So Paramount, you know, we're seeing stories about who's supposed to buy Time Warner. Paramount is out, right? Oh, Paramount's not gonna be getting it. It's probably gonna be Netflix. And then these stories start coming. Paramount grows more confident, Warner Brothers and Discovery will drop Netflix bid. And, and a lot of people, Tom is texting me all night. He said, let me tell you what's going on here. I said, I'm gonna go to Snyder first on this and then pump and see what we do. So confidence has grown inside Paramount Skydance and Warner Brothers Discovery.

• 8:11Patrick Bet-David?

  It's deal with Netflix in a matter of days and reopen a months-long bidding war of the company. The Warner Brothers, if Warner Brothers does reopen the process, it will have less to do with the recent barely enhanced offer by Paramount, where it didn't increase its all-cash deal of 78 billion bid, other than agreeing to cover a backup breakup fee to walk away from Netflix. Then the worries about valuation and the regulatory uncertainty. At the Post Report of last week, the firm known as WBD Warner Brothers. That controls the iconic Warner Brothers studio HBO Max streaming and cable properties like CNN Discovery has been under massive pressure to consider the sweet sweetened offer

• 8:54Patrick Bet-David?

  from Paramount Sky Dance increasingly Warner Brothers investors believe the nearly sealed 72 billion dollar deal from Netflix for the studio and the streaming service is facing insurmountable regulatory hurdles while they also are questioning the valuation of the Netflix offer Jeff where do you stand with this?

• 9:10Speaker 02

  Again, I think that it's an admission that the industry as it was is failing that there's there's enough technological change and evolution that they're trying their best to keep the horse alive as long as they possibly can and the only way to do that is to create streaming libraries that are big enough to survive the fact that they have all just junk.

• 9:31Patrick Bet-David?

  But why do you think this happened though you know it's going this way and the market's like I don't I don't think they're gonna pick it up I don't think Paramount's gonna pick it up and then all of a sudden oh come back here no we should look at Paramount why do you think that happened?

• 9:42Speaker 02

  There's stuff going on behind the scenes because this has become such a hot button thing you know the government's getting involved I mean we've got lawyers involved there's a lot at stake for all parties involved which means it's too much to just simply say oh Netflix you take it we'll be fine we'll go someplace else it's it's again the competition issue is really what's driving everything the fact that social media I specifically say YouTube but it's not just YouTube.

• 10:07Patrick Bet-David?

  You would rather have it go to YouTube?

• 10:09Speaker 02

  No I'm saying YouTube is eating their lunch social media is eating their lunch the idea of appointment television that kind of it's you know baby boomers do that most young people.

• 10:20Patrick Bet-David?

  Appointment television that's what you call it.

• 10:21Speaker 02

  That's what they call that's not my term they call it appointment television the idea that somebody sits down.

• 10:26Patrick Bet-David?

  76 million boomers out there you just pissed off.

• 10:27Speaker 02

  I know I'm sorry but to all the younger people who have like for example never seen a nightly news report they're not gonna sit down at 6:30pm and watch CBS News that that property is dead.

• 10:40Patrick Bet-David?

  What do you think you think it's gonna end up going to Paramount you think it's gonna end up going Netflix what are your thoughts?

• 10:46Speaker 02

  I think that

• 10:48Speaker 03

  All the numbers, everything everyone's focused on, the wrong thing to focus on. There's only one thing that matters.

• 10:53Patrick Bet-David?

  Tell me.

• 10:53Speaker 03

  Who are the people? You go and bet against the Elsons? They got Netflix's market cap is 325 billion. Larry Ellison personally is worth 225 billion dollars. His net worth is almost as much as the entire Netflix business. So they got the money. The second thing is you got people running Netflix who aren't the founders. You have basically professional CEOs who have come in. So you're an adult.

• 11:15Patrick Bet-David?

  Are you talking about Ted?

• 11:16Speaker 03

  Yeah, they're not the founders.

• 11:18Patrick Bet-David?

  They're not. But Reed is still involved, right?

• 11:20Speaker 03

  That's fine, but you're in a dogfight. You need, you need people who know how to fight, right? It's like taking somebody who is like a bodybuilder at the gym. They look real good, right? Look, they got the big muscles and stuff.

• 11:29Patrick Bet-David?

  Fight a UFC guy.

• 11:30Speaker 03

  Well, you fight a street fighter, they don't got the muscles, but they whoop your ass, right? And so same thing here is you basically have very entrepreneurial family that is just going to keep fighting. And you see it every time you see a headline come across, what they talk about.

• 11:42Patrick Bet-David?

  Let me ask you guys.

• 11:43Speaker 03

  We're gonna go red alert, we're gonna go, you know, real hard at this.

• 11:45Patrick Bet-David?

  Here's a question for you. How much, how much does diplomacy and building relationship with the current administration matter in deals this size?

• 11:54Speaker 04

  10 out of 10.

• 11:55Patrick Bet-David?

  You think so?

• 11:55Speaker 04

  Yeah.

• 11:56Patrick Bet-David?

  Tell me why.

• 11:56Speaker 04

  I think that's the entire reason why this is happening. Like, look at the Kao Shi odds. It was, I think they were up like 60% that Netflix is gonna win a week or two ago. And now it totally flipped and now they're saying Paramount's gonna win.

• 12:06Patrick Bet-David?

  You have the updated Kao Shi odds?

• 12:07Speaker 04

  Yeah, now it says Paramount is the favorite.

• 12:11Speaker 04

  And I think.

• 12:11Patrick Bet-David?

  Is that it?

• 12:12Speaker 04

  Yeah.

• 12:12Patrick Bet-David?

  Who will successfully take over Warner Brothers? So Red is who? Red is Netflix?

• 12:16Speaker 05

  No, none before July 2027 is Red at 15%. Netflix at 36.4%. Paramount at 49.8%.

• 12:24Patrick Bet-David?

  Can you go to the peak of Netflix, Blue, whatever that was in June, July? January, right there, yeah.

• 12:30Speaker 04

  Yeah, it was like two weeks.

• 12:31Patrick Bet-David?

  70, wow. 72% of Paramount was at what? Does that say 16?

• 12:36Speaker 05

  16.2% of Paramount.

• 12:37Patrick Bet-David?

  And now it's what?

• 12:38Speaker 05

  Today it is 49% Paramount, Netflix 36.8.

• 12:43Speaker 04

  Without any breaking news, oh, sorry. Without any breaking news happening though, so I think that's like you said, behind the scenes stuff, and I think that's the forces of the political will behind it.

• 12:50Speaker 02

  So is it a government backlash? Is it a public backlash? Is it like you're saying, is it the street fight between the companies?

• 12:56Speaker 03

  Well, there's some other things that have happened. There's been a couple of deals that occurred where people started to realize, wait a second. Cause there's this whole controversy, and I don't know all the details, right? But there's this whole controversy over, uh, how much is some of the assets actually worth? And shares versus cash. Cash is king, $1 equals $1, right? But the second you start talking about, hey, we're going to give you some shares. Well, is that share worth $1 or worth $3? And there's a bunch of debate about that. But there's been some public market deals that have happened where now it's calling into question things that Netflix was previously saying. And so I think that you have a combination of factors. You've got the politics like they're talking about. You've got the characters that are, you know, kind of, uh, going through this.

• 13:32Speaker 02

  The players, yep.

• 13:33Speaker 03

  And then you also have, okay, we're getting more data from the market that maybe it's just that, look, these legacy assets might not be as valuable as everybody thought they were.

• 13:41Speaker 05

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• 15:36Speaker 06

  And by the way, long-term, go 20 years, not five years. Go 20 years. 2046. What does the media look like? What does Netflix look like? What does YouTube look like? What does Time Warner look like? What do these guys look like?

• 15:53Patrick Bet-David?

  Well, you know a great point, Versant? You know, this like CNBC, MSNBC, all they all got spun out from NBC Universal? It's down 35% since they went public.

• 16:05Speaker 06

  Versant?

• 16:06Patrick Bet-David?

  Versant. So like NBC has all these assets. They basically took CNBC, MSNBC, Golf Channel. The appointment television stuff. And they spun it out and they say, that's our streaming business. We don't want to have our movie film library, all this stuff, funding this other stuff. So we're going to break these out into two separate businesses. That Versant business that got spun out is now down 35%. So what they thought it was going to go out at, obviously the market is repricing it 35% lower. So then you go and you look at Netflix, you look at these other things, and I think to your point, like...

• 17:08Speaker 03

  How much TV do you watch versus YouTube, social media, Netflix? It's just not that much.

• 17:13Speaker 04

  It's played out. Oh, sorry. I finished.

• 17:15Speaker 03

  No, so it's just like it is less valuable than it was, you know, five, 10 years ago.

• 17:19Patrick Bet-David?

  It's 75 billion dollar value to Paramount and 75 billion dollar value to Netflix where they want to pick something like this up, Brandon.

• 17:25Speaker 04

  Yeah, no, I just think like if this goes through for Netflix, it kind of creates a fortress for content like that example. I think it's because it's like, that's like a knockoff streaming service, what they made there, but Netflix is Netflix because it has most of the content on it. Then if they get this, it's like the primary source for content that people actually want to watch. So, um, yeah, I think just because it has market dominance already and this would give it like stuff that doesn't even have. So I think it would give it more of that monopoly that we're trying to avoid.

• 17:52Patrick Bet-David?

  Well, we'll see. I mean, can you go to Tom's tweet real quick? Go to Tom's tweet since Tom is not here. Warner Brothers Discovery just pulled a power move. Set the Netflix merger vote to March 20th. Told shareholders to vote yes on Netflix. Also reopen talks with Paramount for seven days. Paramount immediately raised their offer from 31, uh, 231 up from 30. Translation. Warner Brothers telling Netflix, we're with you while whispering to Paramount. Show us what you really got like dating two people at once. Classic corporate auction. Warner Brothers shareholder will win employees brace for layoffs. Either way, Hollywood consolidation, fewer buyers, worse deals for talent, higher prices for consumers. The trick will be getting this through the Federal Trade Commission hearings. That will be a mini series by itself.

• 18:36Patrick Bet-David?

  By the way, Tom, quick shout out to you. You got a laugh from a text joke, not an actual joke. So maybe in the future, we should test this out more often. I want to get to the next part here. Apple announces they want to take on YouTube and Spotify with new video podcasting push. Apple. When you think podcasting, you don't think about Apple. I don't even think Apple pays.

• 18:59Patrick Bet-David?

  Rob, does Apple pay anything in AdSense? I don't think Apple pays anything, right? There is no pay from Apple.

• 19:04Speaker 05

  Not in comparison to Spotify.

• 19:06Patrick Bet-David?

  Not in comparison to Spotify and YouTube. And by the way, YouTube used to be higher. Now, apparently Spotify even pays better than YouTube on AdSense. We get the reports on a weekly basis and you'll see Spotify getting above it. But Apple on Monday announced that it'll bring a new integrated video podcast experience to Apple Podcasts this spring. This move comes as video viewership continues to reshape podcasting. About 37% of people ages 12 and up watch video podcasts monthly, according to Edison Research. The update brings Apple Podcasts more in line with its competitors Spotify, YouTube, and now Netflix, which have increasingly leaned into video podcasting 20 years ago. Apple helped take podcasting mainstream by adding podcasts to iTunes and more than a decade ago,

• 19:51Patrick Bet-David?

  we introduced a dedicated Apple Podcasts app, says Eddie Q. Apple's Senior Vice President of Services in a statement, "By bringing categories leading video experience to Apple Podcasts, we're putting creators in full control of their content and how they build their business, making them easier than ever for audiences to listen." I get it, but what are you paying? Pomp, your thoughts on this?

• 20:12Speaker 03

  Well, I think that, look at what you guys are doing here, right? This is basically what TV used to be. And so, what's the difference between a podcast or a TV segment? It's actually in the distribution. There is no big difference. And as somebody who goes on legacy television quite a bit, but also is on the internet, people always ask, "Why do you go on TV?" And I tell them, "It's because I use the TV as a clip to then put on social media." It's basically just content creation. There's a different vibe, there's different people, different characters, different conversation there. But it's really just to drive the distribution on social media. So I think that's one big piece of it. And what these guys are realizing is also that the business economics of podcasts or that type of content is much more favorable to both the content creator, but also to the distributor.

• 20:55Speaker 03

  So if I want to go and I want to license CNBC, or I want to license CNN or whatever, there's all of these things involved, including all the agents that are involved for the hosts themselves, how much the unions are involved in producing the show, the distribution, all the people who have a hand in the cookie jar in terms of getting a cut. Well, if you just go straight to YouTube, or you go straight to Spotify, or you go straight to YouTube, uh, to, uh, Apple, now all of a sudden, you don't have all those people who are extracting value along the way. And so what you're able to do is you're able to get the content to the audience in a much more cheap streamlined way. And so that means that there's more profit for everyone to enjoy. And I think that's why Apple, who's really not only a hardware company, now a services company, they want to get in this game because they realize they're going to make more money here licensing this content than they are in some of these other, you know, kind of traditional legacy media.

• 21:40Patrick Bet-David?

  But I gotta tell you, Apple is not going to win this race with Spotify and YouTube. Apple, you know, you know what Apple's mindset's always been? You're lucky to be on our app. Therefore, you pay us a third, right? And they had that whole lawsuit that happened that changed the numbers. What was that video game company that was the first one brave enough to sue Apple? Do you know what I'm talking about?

• 22:01Speaker 03

  Epic.

• 22:01Patrick Bet-David?

  Epic, yeah, epic that went through it. So when I look it up right now, on what Spotify does, and what Apple does, and what YouTube does. So Spotify pays 50% of the ad revenue goes to eligible creators under its partner model, okay? Podcasters can offer pay tiers and keep 100% of the subscription minus processing fees, okay? YouTube, you'll typically make a dollar to $2 per thousand monetized views. So you could make $1,500 to $2,500 per half a million monthly views that you have. Okay, so their share of the adsense is 55, 45. Apple pays nothing. The only thing they do is if you have a subscription model. So if Apple wants to compete, and if

• 22:43Patrick Bet-David?

  they go this model with no adsense, they're not going to be able to compete with the other guys. Apple has to figure out a way to bring the adsense model to it. And by the way, if they did, they would be so competitive. If they started allowing content creators to get paid, they're not there yet, they're right now. When you, Rob, think about it, can you run a poll real quick? When you think about podcasting, matter of fact, just ask the question, where do you consume your podcasts? It's kind of an unfair place to ask the question, uh, because they're watching it on YouTube, but maybe ask the question the following way. Which of these do you look at as a preferred podcast platform? Spotify, YouTube, okay, you already have it? Can you run the poll? Let me see the poll. It put 89% where? YouTube, Spotify, none, but

• 23:28Patrick Bet-David?

  this is we're asking people on YouTube.

• 23:30Speaker 03

  Here's one piece that I would say is, If Apple came to me and they said, hey, we're going to give you the distribution, but we're not going to make any money for you. We're not going to sell any ads against your content. I would actually prefer to put the content on Apple because they're going to give me distribution, but they're not going to take anything. And so if you look at most people who are creating content, I think that there's a large portion of them that they rely on the AdSense. So if you're on YouTube, a lot of people are not selling ads themselves, they're just getting the AdSense. But for the higher level, the more sophisticated shows or content creators, they're monetizing themselves. So if you look at like the revenue for anything we put on YouTube, the amount of AdSense dollars we get compared to what we sell ourselves is immaterial. So what I want is I want distribution.

• 24:10Patrick Bet-David?

  Are you comfortable sharing that number?

• 24:12Speaker 03

  Uh, no, they probably won't let us do that, or our team would get mad.

• 24:15Patrick Bet-David?

  But let me, let me ask you a question.

• 24:16Speaker 03

  But let's just say, let's just say it's like 10 to 1.

• 24:20Patrick Bet-David?

  10 to 1 on what you do with?

• 24:21Speaker 03

  Like we sell direct ads ourselves.

• 24:22Patrick Bet-David?

  Versus the other way around.

• 24:23Speaker 03

  Versus what the, what the YouTube guys sell.

• 24:25Patrick Bet-David?

  So, so to me, I would, uh, um, I would say, I understand what you're saying because you're a pro, but you're not everybody.

• 24:34Speaker 03

  Correct.

• 24:34Patrick Bet-David?

  And so to me, if you want to get mass, mass exposure and growth, guess what? You have to hit that market up that doesn't have a sponsorship division.

• 24:45Speaker 03

  Yes.

• 24:46Patrick Bet-David?

  That's not doing it.

• 24:46Speaker 03

  Yeah, we're not all Patrick, but David, but you know, we're trying.

• 24:49Patrick Bet-David?

  We're not all pomp is what I'm saying because you get a lot of sponsorship money. We don't do it with everybody. We have one sponsor that we work with and you know, that's kind of how we will do certain things with. But to me, I think Apple has an opportunity and, and I wonder why the reasoning is. Jeff, where are you at with this?

• 25:06Speaker 02

  I think it's great because like you said, there's, it opens the door for potentially other business models, right? That's competition, that's what it's supposed to do. And that's why social media and these kinds of platforms, you're right, it's about distribution. It's not necessarily about ads. If you have a different business model and you don't want to go through the traditional YouTube or whatever else, um, Apple gives you the, the opportunity to get to a different, different marketplace, a different set of eyeballs. And if you can figure out how to make money on that, that's terrific. So.

• 25:36Patrick Bet-David?

  Do you think Apple's eventually going to offer an AdSense division?

• 25:38Speaker 02

  I think they have to. I mean, otherwise, why are they doing this?

• 25:40Patrick Bet-David?

  You think they will?

• 25:41Speaker 02

  They have to.

• 25:42Patrick Bet-David?

  Well, if they do. Who has a bigger distribution than them?

• 25:45Speaker 02

  Exactly, they have to have some kind of vision. There's gotta be some kind of idea. I mean, they're not just doing this as, you know, we're getting our asses kicked by all the other platforms. We need to just get in the game. They have some idea here. I think it's exactly what Anthony just said.

• 25:57Patrick Bet-David?

  It's what?

• 25:58Speaker 04

  It's lazy. Like, how about fricking create something? I mean, like, they they just mooch off other ideas the last decade or so. I mean, ever since Steve Jobs died, they haven't created anything. They just, you know, Apple Banking, now this. I mean, how about create something that has the biggest market cap in the world?

• 26:13Patrick Bet-David?

  Well, they would tell you, we did create podcasting.

• 26:17Speaker 04

  Yeah, but Steve Jobs.

• 26:19Patrick Bet-David?

  No, you're right. And by the way, I think you also have a good point that there are a lot of people on your side as well that criticize why they're not creating any new products. I mean, if you get a story, do you think Apple wants to hear a story that says Berkshire Hathaway? You know, chooses to invest. I don't know what page that story is, Rob. Berkshire Hathaway chooses to i- i- invest in New York Times and there it is. Berkshire Hathaway invests in New York Times and trims Apple. You think that's a good story?

• 26:47Speaker 04

  No.

• 26:48Patrick Bet-David?

  Berkshire Hathaway? Now, some people may say, well, you know, Buffett is no longer involved, so it's a different person that's doing it. But there is a level of criticism towards new things they're they're creating.

• 26:57Speaker 04

  It's like, what's the growth story? You know, like, they don't have haven't heard of Apple AI yet, not even a peep about it.

• 27:02Patrick Bet-David?

  I get that. Do you think they eventually will get into AdSense?

• 27:06Speaker 04

  Yeah.

• 27:06Patrick Bet-David?

  For podcasting?

• 27:07Speaker 04

  Yeah, they should, but it's it's not like a huge revenue stream. It's not a huge vertical. Like, I mean, I don't know what the story is as far as like a huge growth story for Apple. You know, it's like, there's a huge growth story for the other big, like, there's a huge growth story for Tesla, Google, but not Apple. No, like, they already have the full potential of the phone market.

• 27:26Patrick Bet-David?

  Pomp, you look like you want to say something.

• 27:28Speaker 03

  I think Apple has always done the exact same thing, which is they own the hardware market. They have a very luxury position there. They've been very good at international expansion to the point where I think people even criticize them that they are very focused on, you know, Asia, China, etc. And I don't know if you guys have seen this chart where basically every single one of the large tech companies is heavily investing in data centers and, you know, GPUs and all this stuff and it's just like the the CapEx expenditure on this thing has exploded. And Apple is basically flat. Everyone's like, well, why are they not spending money on this? And so when when you see that, you start to ask yourself, okay, like, what's the strategy here? Well, if you own the hardware, that is the consumer device in people's hands, you own distribution. If you own distribution, what have they done over the last 15 years or so?

• 28:12Speaker 03

  They have started to expand their revenue sources by offering services. Some of those services were just like App Store bullshit that they were, you know, essentially just taking the 30%. But they also did Apple Music and they started to kind of get into all these things. When you get into podcasts, what I think is really interesting about the internet is the internet not only has opened up these new business models, but there's a very strong argument that Mr. Beast is the new, you know, whatever, ABC or, you know, whatever channel.

• 28:38Patrick Bet-David?

  Paramount.

• 28:39Speaker 03

  Paramount.

• 28:40Patrick Bet-David?

  Exactly.

• 28:41Speaker 03

  So there was a clip that recently went viral of Mr. Beast and the president of Beast Industries. And they were talking at the Dealbook Summit and they said, well, what's your business? He said, all right, well, we got the content and that includes everything from going on YouTube to now they have the Amazon show and Beast Games and all that. Then they've got an entire consumer product division, which started out as like knickknack type food and, you know, feastables, lunchie or whatever it's called. Now they just bought a bank, right? They bought a fintech app that they're going to go distribute to it.

• 29:09Patrick Bet-David?

  Yeah.

• 29:10Speaker 03

  And then they're saying, oh, wait a second, but we're also going to create a marketplace for creators and advertisers to come and get connected to each other. So they're realizing that, hold on, if we have distribution, then we could put products through that distribution. But then we also can create a marketplace where we can take a fee. That's Apple's business. Apple has the distribution, they create services, then they have the marketplace. And so I just think that distribution naturally leads itself to wanting all these different revenue sources. And so they get into podcasts, yeah, of course they're going to eventually do AdSense. But I think they're also going to try to figure out, how do you do it in the Apple way? What's the other things that you can do that, you know, YouTube or others may not be able to do?

• 29:43Patrick Bet-David?

  And where was this? The Mr. Beast?

• 29:45Speaker 03

  Mr. Beast is at the Dealbook Summit. If you go to Twitter, just do Beast, you know, business line, maybe, or something like that.

• 29:53Patrick Bet-David?

  It's called what summit?

• 29:55Speaker 03

  Dealbook Summit.

• 29:56Patrick Bet-David?

  Dealbook.

• 29:57Speaker 03

  Go to media. Yeah, just do Mr. Beast and then click on media and that.

• 30:02Speaker 02

  Let's see.

• 30:03Speaker 04

  Well, you're looking at all that relies on them being the main phone for people, though. Like, what if they got disrupted by their technology, then they'd be, you know, destroyed pretty quickly, no?

• 30:12Speaker 02

  Wasn't that kind of like an arrogant assumption, though? If we own the technology, if we own the device, then people will just naturally flow from there. That may have worked 10 years ago, but the entire space has changed.

• 30:23Patrick Bet-David?

  You don't think that applies today? You don't think distribution wins?

• 30:26Speaker 02

  No, it does, but the distribution, the nature and character of distribution, as Anthony's saying, is completely changing.

• 30:32Patrick Bet-David?

  Right.

• 30:32Speaker 02

  That's the evolution here. That gets us back to Paramount and Netflix and everything else.

• 30:38Speaker 04

  Search Mr. on Twitter, search Mr. Beast Consumer, but Mr. Beast is all one word.

• 30:43Speaker 02

  The entire media ecosystem is being rewritten. It's completely rewritten, but it's only, you know, maybe a third of the way through it.

• 30:52Patrick Bet-David?

  How long is it, Rob?

• 30:53Speaker 05

  1 minute 16 seconds.

• 30:54Patrick Bet-David?

  Let's watch it. Go for it.

• 30:56Speaker 05

  So we have three divisions. Our media division, which obviously, as Jimmy talked about, YouTube is the anchor, but our shorts on TikTok and Instagram. Beast Games, which season two is airing in January. We just dropped animation. We also are working on other channels. So all of the content is one division, and that today is about half the revenue. And then we have a second division, which is our consumer products and services. Feastables being the anchor, our chocolate brand, the largest ethically sourced chocolate brand in the world. Our Mr. Beast Labs toy, where our toy is now the number one action figure in America. And our Lunchly, which is our snack product, in addition to our joint venture with Jack Link's for beef jerky.

• 31:41Speaker 05

  We're also launching a phone company, Beast Mobile, and a financial services platform in there, wrapped in financial literacy and access to the world's information in making sure we're doing good while doing well. And then the last one, which we're really excited about, is building a two-sided marketplace and a global creator platform, matching creators with Fortune 1000 marketers, who want to be able to access the creator influencer economy in an efficient way to be able to build demand for their products and services.

• 32:13Patrick Bet-David?

  This is what you call the ultimate flywheel. The importance of first winning with distribution, and then you can pick and choose. I just pulled up some numbers here. 2024, their holding company, okay, Beast Industries, did $473 million in revenue.

• 32:29Patrick Bet-David?

  2025 projected Beast Industries, the numbers are not finalized, $899 million. You know that snack brand that he was talking about Feastables? You know what's the top line revenue just on Feastables? $250 million in sales just in 2024, when you think about this. So, this is the engine, the brand being created, the flywheel, some of the things that we talked about a year and a half ago at the Vault Conference, and those who were there, you know exactly what I'm talking about. This is powerful. This is powerful. The question is, Pomp, is this duplicatable? Can anybody do what Mr. Beast is doing? Maybe not at his level, but is it duplicatable?

• 33:08Speaker 03

  Well, I think that there's people who are already doing it. So, Kim Kardashian and Mr. Beast, from a business model standpoint, same thing, right? Get attention, drive distribution, build businesses, put it through the distribution. If you look at Jake and Logan Paul, I mean, they're two of the best entrepreneurs, I think, of our generation, right? Same thing. Get attention, build distribution, put products and services through it. So, it's definitely replicatable. Now, what I think is really interesting, and for Jimmy is going to be, his audience tends to be younger, and tends to have smaller dollars than, let's say, a, you know, a Ryan Serhant, or somebody with a much larger audience that is, or I'm sorry, with a much-

• 33:42Patrick Bet-David?

  Smaller audience, but a richer-

• 33:44Speaker 03

  Correct. So, what is he going to do as they grow in age? So, he's already got the relationship with them, and now you see him going into the fintech space, right? So, if he can grow with this audience over time, it is going to be insane as they come into more money and they start to have disposable income, he's going to be able to sell them all kinds of things that previously looked like snacks, that are high-volume, low-price.

• 34:03Patrick Bet-David?

  How closely you think he studies PewDiePie as a case study? To see what was done right and what was done wrong? Because, think about it. 10 years ago, PewDiePie runs the world, right? If you remember when they were racing with that other Indian YouTube channel, what was the other, what was the other YouTube channel called? When he was competing with, it starts with a T. Can you ask the question, which-

• 34:26Speaker 03

  T-Series?

• 34:27Patrick Bet-David?

  T, is it called T-Series?

• 34:29Speaker 03

  I think so.

• 34:29Patrick Bet-David?

  I think it's called T-Series, on who would get to 100 million first? And I think Beast got there or something. But how much you think he studies PewDiePie to say, "I don't want to make some of those mistakes, or do what he did right"?

• 34:39Speaker 03

  I've talked to Jimmy a number of times, and the two things I can tell you is, one, he is incredibly intelligent, and he's very strategic. But the second thing is, and I hope he doesn't mind me sharing this, he called me one time, and just out of the blue, and I answered. He goes, "Pomp, teach me something."

• 34:55Speaker 03

  Jimmy, you okay? They teach me something. And we started talking about, you know, uh...

• 35:00Patrick Bet-David?

  That was the opening of the call.

• 35:02Speaker 03

  Yeah, he just had, he had five minutes and he was just calling people on his phone. And he was just like, "Hey, what's something you learned this week?" or whatever.

• 35:07Patrick Bet-David?

  Wow.

• 35:08Speaker 03

  That tells you everything you need to know about a person in terms of their ability to continue to grow, learn, you know, uh, try to get better, etc. This guy is the top of his game. The gentleman that you saw talking there, uh, Jeff, is, uh, he's former CEO of Shutterfly. He worked at SoftBank. Now he, uh, came as the president and I think he's the CEO of Beast Industries. You don't recruit talent like that unless you are hyper ambitious. And those people look under the hood and say, "You've got the goods."

• 35:36Patrick Bet-David?

  What's the comp for a guy like that? What's he making?

• 35:38Speaker 03

  Probably not enough.

• 35:40Patrick Bet-David?

  Three to 20?

• 35:42Speaker 03

  I mean, it all depends on what is the equity package, right? But from a cash perspective, maybe he's getting paid, you know, one, two million bucks in cash. And then on the equity side...

• 35:49Patrick Bet-David?

  Upside, whatever you'd end up doing?

• 35:51Speaker 03

  Well, it also depends on how much, uh, you know, is he gonna bet on himself, right? Like, one of the things that's becoming very popular in public markets is the CEOs who take these kind of performance-based packages. And so, you know, I've even taken inspiration from whether it's Elon Musk, Kazo, Open Door, etc. People are just saying, "Listen, shareholders wanna see executives win if they're winning." They don't wanna see the executive make it 25 million bucks a year as the stock goes down.

• 36:14Patrick Bet-David?

  And by the way, it's so funny while we're talking about this. Last week, Logan Paul broke a record with Ken, uh, Ken Golden on the most expensive card ever sold. And the, the, you have the clip, Rob? Go for it. Go ahead.

• 36:25Speaker 06

  Logan Paul?

• 36:26Patrick Bet-David?

  Logan, you get it.

• 36:27Speaker 06

  Ken Golden?

• 36:28Patrick Bet-David?

  Yes.

• 36:28Speaker 06

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• 39:06Speaker 03

  On behalf of Guinness World Records, I can now confirm you have achieved a new record title for the, not only for the most expensive, poker

• 39:15Patrick Bet-David?

  Pokemon card ever sold at auction, but also the overall record for the most expensive trading card ever sold at auction.

• 39:25Patrick Bet-David?

  Oh my god, brother. Congratulations. Okay, you can pause it right there. Question is, he bought it for four or five million bucks, okay? Sells it for 16.4. What's the likelihood an average guy with zero following, who bought it, let's just say, when he did for five million would sell it for 16.4 today? What's the, how much of it was 16.4 because it's Logan Paul and Ken Golden? And how much of it is because of the asset?

• 39:51Speaker 03

  I don't think the price is determined by who's selling. I think the price is determined by who's buying. And I, A.J. Scaramucci, Anthony Scaramucci's son, I called him, I said, hey, he's kind of crazy, he paid 60 and a half million dollars. Why? And what he told me was, his entire thesis is that we are going to see the dollar get debased over the long run, and scarce assets are going to do very well. And so he, you know, he said something publicly where he wants to buy this card, he wants to buy the Declaration of Independence. There's a bunch of these assets that he wants, and he basically wants to then put them together. And he's got this, uh, this website, treasuretrove.com. It's just, you know, you type in your email and he's gonna like email you later or something. But basically, his whole idea is, can he go collect all of these super rare scarce assets? And he believes that, you know, this card went from five million to 16 million.

• 40:35Speaker 03

  He thinks that this card is worth over a hundred million dollars in the future. Whether he's right or not, I have no clue. I don't know that much about Pokemon. But what I do know is that it's a pretty good thesis. If you see gold, Bitcoin, real estate, all these things that historically have done very well, he's basically just betting on scarcity. And he's like, what's more scarce than, you know, the number one Pokemon card in the world? What's more scarce than the Declaration of Independence, right? And so, let's see if he's right, but it's a pretty interesting thesis. So now all of a sudden, if you think it's worth, you know, a hundred million, you're willing to pay 16 because you think you're gonna get a great return. So it's less about who's selling, it's more about, you know, who's buying and what their view is.

• 41:09Patrick Bet-David?

  I do think it's gonna be worth a hundred million. I, I think any of these non-duplicatable assets that are one-offs, especially the one of one, anything limited, numbered, one-on-one, one of, I had a call with, uh... Kevin O'Leary and his partner, we got on a call together.

• 41:28Patrick Bet-David?

  And we talked about what they're doing with collectible cards. You know, Kevin's now all of a sudden into the card business. And they're buying up a bunch of numbered, limited edition type of stuff. Where are you at with this, Jeff?

• 41:37Speaker 02

  I think that the seller is part of the story here.

• 41:40Patrick Bet-David?

  You think it's the seller more than the buyer?

• 41:42Speaker 02

  You're right. It's scarcity, but you can also create artificial scarcity, right? Because if you have a very unique product and it gets even more unique because there's a story behind it or a person behind it. That certainly doesn't hurt. So I think there is definitely some seller.

• 41:57Patrick Bet-David?

  You're saying the story has value to it as well?

• 41:59Speaker 02

  The story has value because it creates artificial scarcity. It's not just a unique item. It's a unique item with a story that you cannot replicate. What is that big ass diamond that everybody wanted forever? It was nothing more than a big diamond, but it had a ridiculous story and lore behind it. So they created artificial scarcity out of it.

• 42:16Patrick Bet-David?

  Is that something you're interested in? You want that big ass diamond or you're saying?

• 42:19Speaker 02

  No, I don't.

• 42:22Speaker 02

  I don't want the Pikachu card either.

• 42:23Speaker 03

  Do you think that's unique or you think that's always how assets have, you know, kind of risen in prices? Like the story has always been a value driver?

• 42:30Speaker 02

  It's not one or the other. There's always different ways to do things, but I think in certain situations like this, the story becomes part of the scarcity.

• 42:38Patrick Bet-David?

  And by the way, have you spoken to Ken before? I'm sure you have.

• 42:42Speaker 02

  Ken Golden?

• 42:42Patrick Bet-David?

  Oh, yeah, yeah. We were together at a event with Ken. Ken's ability to tell stories and promote, oh my God. This guy, if you ever see him sell a card and you just watch it for one minute, you will notice you're suddenly saying, I need this card. I need this piece. He is phenomenal at what he does. He's the best in the game.

• 43:05Speaker 02

  You know who he is? He's the Don King of collectibles.

• 43:10Patrick Bet-David?

  You're not lying. He is. He is. So we'll see what happens here with the collectible card space. Let me get into the next story. Next story I want to get to is Elon Musk and retirement. Rob, what page is that on? There it is, 14. Elon Musk says you can skip retirement savings in the age of AI. Not so fast. Okay, this is a Fox News story. Let's see how this story goes. Rob, if you want to play the clip first, go ahead. Yeah.

• 43:39Patrick Bet-David?

  Well, one like side recommendation I have is like, don't worry about like squirreling money away for retirement.

• 43:44Speaker 04

  in like ten or twenty years, it won't matter.

• 43:48Speaker 07

  Okay. Either either we're not going to be here, or.

• 43:52Speaker 02

  Can you expand on that a little bit?

• 43:55Speaker 04

  You won't need to save for retirement. If if any of the things that we've said are true, saving for retirement will be irrelevant.

• 44:01Speaker 07

  The services services will be there to support you. You'll have the home, you'll have the healthcare, you'll have the entertainment. The way this unfolds is fundamentally impossible to predict because of self improvement of the AI and the accelerating timeline.

• 44:17Speaker 04

  Yeah, it's called singularity for a reason.

• 44:19Speaker 07

  Yeah, exactly.

• 44:19Speaker 04

  I don't know what goes happen. What what happens after after the event arising?

• 44:23Speaker 07

  Exactly. You can never see past the black hole or the event horizon, the light going. I mean, Ray Ray has a singularity out way too far. I mean, this is like the next, what what's your timeline for? Yeah. For this.

• 44:35Speaker 04

  We're in the singularity.

• 44:36Speaker 07

  Well, we are in the singularity for sure. We're in the midst of it right now, for sure. And it would just. Well, we're in this beautiful sweet spot, which is, you know, the.

• 44:42Speaker 04

  We're the roller coasters. We're just.

• 44:44Speaker 07

  Yeah, exactly. That's a great analogy. It's like that feeling.

• 44:47Speaker 04

  You're at the top of the roller coaster and you're about to go.

• 44:49Speaker 07

  Yeah, but you know, it's gonna be a lot of G's when you.

• 44:51Speaker 04

  Yeah, a lot of G's.

• 44:52Speaker 07

  When you hit it.

• 44:54Speaker 04

  It's like people like, I don't have just courtside seats. I'm on the court.

• 44:57Speaker 07

  Exactly.

• 44:58Speaker 04

  And it blows my and still blows my mind. Sometimes multiple times a week.

• 45:03Speaker 07

  Yeah.

• 45:04Speaker 04

  And so.

• 45:05Patrick Bet-David?

  You can pause the right thing.

• 45:06Speaker 04

  Just when I think.

• 45:07Patrick Bet-David?

  Jeff, your thoughts. Do you agree?

• 45:08Speaker 02

  Uh, this is insane. He just said, look, we can't predict how this is gonna go. So the next thing he says, or the thing before that is, don't save for retirement. We have no idea how this is gonna look on the other side, so just say, screw it, the hell with it. Just trust us that this is gonna go well and you're gonna be taken care of.

• 45:25Patrick Bet-David?

  Is that how you process it, that he's saying, trust us, that we'll figure it out?

• 45:27Speaker 02

  He's saying, trust us, this is all gonna work the way we want it to work and that you won't need to save for retirement. And then he also says, we don't know how the hell it's gonna work out. I mean, to me, this is completely insane.

• 45:37Patrick Bet-David?

  Pop.

• 45:38Speaker 03

  Brandon, you go first and then I got a lot of thoughts on this. Let me hear what he says first.

• 45:42Speaker 04

  Yeah, no, it's it's super reckless. I mean, I'm curious like how many times Elon must been wrong. I know there's been a lot of them, but I mean, like to to put on.

• 45:51Patrick Bet-David?

  That's worth eight hundred billion dollars.

• 45:53Speaker 04

  I know, but still, he's been wrong. He's made crazy predictions. He's been wrong about like with timelines and everything. But like, look at the stakes that if he if he is wrong, like, I mean, people already don't save for retirement. So like, how many people are going to be influenced by that and say like, oh, yeah, screw it. I'm gonna be able to have UBI in the future. So I'm not gonna save for retirement. And then what if he's wrong? So it's super reckless.

• 46:12Speaker 03

  So I'm literally building a company around this because I think that this is the single most important thing that the everyday American has to understand is happening right now. There is a arms race that is about to occur, which is there is artificial intelligence that is being built at hyperspeed. And that artificial intelligence is being able to automate away tasks and eventually jobs at a very, very fast rate. Now, let me give you a couple of examples. Uh, how many software engineers now aren't writing code? They're just letting AI do it. I am invested in a lot of these companies. Fifty plus percent of the code being written inside these companies written by AI. Now there is Claude cowork. So now it can go and do a bunch of tasks that an entry level employee could do.

• 46:55Speaker 03

  You're now starting to even see Elon in that same interview. Oh, I'm sorry. He did an interview with the cheeky pint with Duar Cash and one of the Colson brothers. He kept saying, we think that Grok has a way to learn faster than all the other models. And he wouldn't say why. And so I started thinking about, because he kept mentioning Tesla, the Tesla model. And so I said, oh, my God, he is basically going to have people just record their computer screen while they work. And they're going to use the machine learning to figure out how to do what you do. And so I tweeted that Elon responded. I didn't tag him, but he responded. He said, pretty much. And so what's going to happen here is artificial intelligence is going to go put a bunch of people out of work. What I believe is the arms races, we have to race to harness artificial intelligence to make you money.

• 47:38Speaker 03

  Because basically what's going to happen here is if we do not harness the ability for artificial intelligence to make people money in terms of you have capital, you give it to the artificial intelligence, it goes into the market, it makes you money. What is going to happen is you're going to be out of work. You're not going to have any capital and you're going to not have a path because the machines can do a better job at anything that you do. And so the first thing that we did is we built this product called CFO Silvia, which basically you come in, you load all of your different accounts, you put your bank account, your crypto, your brokerage, all that stuff in there. And then you can start to talk to the AI and ask it simple questions. How to get my tax rate down? What should I do if I want to have this net worth in five years or 10 years? You can also ask it like, how does this current event go ahead and impact my current portfolio? And the beauty of this is if you ask a chat GPT or, you know, Anthropic or any of these other guys,

• 48:23Speaker 03

  it'll give you very basic answers. You know, here's what people do to get their tax rate down. What this does is it tells you to your specific situation, asset by asset, what to do. And what's interesting about this is we start to get feedback from these users. What are these users saying? I trust the AI more than I trust a human person. I tell the AI more things than I would normally tell you. I ask questions I wouldn't ask a human because the human will judge me, but I can ask these questions here. And so what you start to realize is people are going to put all of their information and context into these systems and they're basically going to say, help me. And CFO Silvia is doing it on the finance side, but what we start to see now is, okay, if there is an arms race occurring, what you're going to see is you're going to see finance get automated.

• 49:05Speaker 03

  Because ultimately, if you're an average person and you're saying, I go to work every single day and I might lose my job in the future, what do I do? I'm going to have to use this technology to get ahead or it's going to put me out of business. So that is the arms race.

• 49:18Patrick Bet-David?

  Do you agree with them though? Do you agree with them that retirement's not something that's important today?

• 49:23Speaker 03

  I think that, one, you should always have some sort of safety net, right? What I think that he's basically saying here though is he's actually not saying don't have retirement. What I think he's saying is humans are not going to drive their retirement. It is going to be all this other stuff. So what the future I envision is you're going to eventually take your money and you're just going to give it to the AI and the AI is going to make sure that you have monthly income, that you've got retirement money, et cetera. Now, there's a gap between where we are with the technology and where that eventually will be. But you see this, like people are passively investing in indexes. You see them constantly looking for, you know, there's all these AI bots and stuff that are now trying to figure out how to use the technology in the financial markets, high frequency trading, hedge funds have been doing this for a long time.

• 50:06Speaker 03

  So my view of this is he's right that you are not going to be trading your time for money in the future in the way that we've thought about that over time. But he's wrong in that you're still going to need money and so you need some sort of retirement.

• 50:20Patrick Bet-David?

  That's interesting. So.

• 50:20Speaker 02

  How does, I mean, again, how does that work for, say, a plumber?

• 50:24Speaker 03

  Well, the whole idea is that, you know, look, if I said to you right now, what can robots do? Most people will say electricians are safe, plumbers are safe, etc. Okay, but if I went back five years ago and I said, do you think that robots are going to build homes? You would tell me I'm crazy. I've seen multiple videos online. Now, the homes don't look the same, but they're 3D printed. They've got the cement automation, all this kind of stuff. And so as we rapidly get here, I think one of the aspects of all this AI stuff and robotics that to me is frankly, it breaks my mind, right? Because it's scary and exciting at the same time, is this idea of exponential production. So if the humanoid robots can start producing more humanoid robots, then what is going to be that future look like? Now, the one thing I will say is, I actually think that the last human mote that exists is right here.

• 51:10Speaker 03

  This is the last human mote. There is not a thing in your brain that is a mote compared to software. Software is going to be able to do everything that you mentally can do. But this, your five fingers in your hand, the dexterity, the mobility of your hand.

• 51:21Patrick Bet-David?

  What is going to be the value of knowledge? What is going to be the value of knowledge? What is going to be the value of somebody who has got a great memory and knows a lot of facts? Like, what is going to be useless? Something that we admire, that in 10 years, we're going to say, you know, yeah, so what? You're so smart. You have all that information? I can take Johnny off the street. He's a homeless guy. Put a 2.2 million dollar latest chip model from Nvidia that's this, and he's going to have access to every single book ever written, every fact in his brain. He's going to have every information there. Now it's about, let's see how good of a processor it is. What do we value today that because of AI, we will not in 10, 20 years?

• 52:03Speaker 02

  Creativity.

• 52:04Patrick Bet-David?

  You think creativity?

• 52:05Speaker 02

  Creativity, the ability to go beyond what we have today.

• 52:08Patrick Bet-David?

  So you think in 20 years, we won't value creativity?

• 52:11Speaker 02

  No, I think we will value more creativity.

• 52:14Patrick Bet-David?

  How about the know-how you were not going to? Know-how, knowledge, facts.

• 52:18Speaker 02

  Know-how, not like you say. You can replicate a lot of, I mean, because they're more, those are more mechanical processes. It's about the ability to go beyond where we have today. So that's, I mean, that's what human ingenuity has been since we were.

• 52:29Patrick Bet-David?

  I agree. You know, there's five things we, we score at the company. Every, every quarter, we do our calibration and it's based on five things. E, A, T, I, R. E is effort, A is attitude, T is teamwork, I is innovation, and then R is results. Three weeks ago, we're doing our calibration meeting and all the managers coming in, they're scoring everybody. And then one of our guys, Mario, scores someone a seven on innovation and gives these other two guys a one. And I said, why did you give these guys, this guy's seven and these two other one? He says, well, because of this, this and that. I said, okay, great. I said, but why this guy's seven because of this? And then he pauses and says, look, Pat, not gonna lie to you. I don't even know how to score for innovation. I said, that's fair. A lot of other people probably feel this.

• 53:10Speaker 02

  That was the right answer.

• 53:11Patrick Bet-David?

  So we have to figure out how to quantify on how to score innovation. And we did, by the way, and here's what our system was. Four-step process that we wrote out on the board. Number one was, how creative is this person? Which goes back to what you just talked about. That's the number one element of creativity to us. Number two was, does this person ask critical thinking questions all the time? We're sitting in a room and say, why do we have that over there? Should we move this prompt over here on the website? Should we move the CTA here? The video that we did, I don't know if I like the way it starts the first three seconds. Maybe we move the intro of this clip to second forty-eight and then move that one to first three seconds. So that is the critical thinking. So you got creativity, critical thinking. Number three is actually always thinking about how we can improve everything.

• 53:56Patrick Bet-David?

  And the last but not least is implementation, because you can have all the first three and you don't implement them. He's nothing. I agree with you. To me, the way you're presenting it, pump, is this is how I see it. Today, you go to a Morgan Stanley guy or Goldman Sachs or JP Morgan Chase guy. I have ten million dollars. How should we invest? Well, let's go small cap, you know, what's your risk tolerance, time horizon, all this other stuff. All right, we're gonna buy some this, we're gonna buy some this, we're gonna buy some that. Let's put some cash, let's put some this. Your age is fifty years old, so fifty minus a hundred, let's go fifty equities, fifty bonds, fifty. Okay, great. No problem. You're saying in the next two, three, five, 10 years, that person's gonna have, I got 10 million dollars.

• 54:36Patrick Bet-David?

  You give to the AI and AI will say, how aggressive do you want me to go find work to create a business? Are you willing to risk that this could not work and my brains of my engineers or the AI is gonna go build this company? Okay, he's gonna go do this for us. Is that kinda how you're processing it?

• 54:55Speaker 03

  I'm actually, I'm saying two things. One is today, the AI will give you information that no human is able to do at the speed and the cost.

• 55:05Patrick Bet-David?

  I'm not saying information. So I know about, I'm talking about.

• 55:07Speaker 03

  But you need the information first and you need people to get used to getting the information.

• 55:10Patrick Bet-David?

  What I'm going to is to kinda go back, pick it back up what Elon is saying. What, are we gonna get to a point? That it's purely about, here's the engines for AI, I give you 10 million, go start something, go build something. Go market something and I do nothing. Then I take that 10 million and now it's like 88 million, go do something.

• 55:30Speaker 03

  So there's two things that are happening right now. This is not like a, hey, is it gonna happen in the future? The first thing is, uh, there's a bunch of experiments that people have where they're basically saying, let me give you 10, 20,000 dollars to this AI. Go into the market and make me money, whether it's a crypto market, stock market, whatever, right? So that, that to me is not very different than high frequency trading now with better technology, but, but that is definitely happening. The second thing that I find really interesting is there's been a couple of these demos that have now gone viral online. Where people will say to the AI, create me a business that makes X dollars per week, per month, per year.

• 56:04Speaker 03

  Come back when you're done. And the AI will go and it'll say, okay, well, if I need to make a hundred thousand dollars a month. What industry should I go into? Let me go look at the TAMS of all these industries where is there, you know, a lot of competition that I could go and undercut, call it like it does, you know, all kind of like a business analysis. This is okay. Well, if I would need to be in that industry, what products should I serve or what service, right? What can I create? Okay, let's create a website, let's get a URL and it starts doing all this stuff. And these people are running these experiments and what they're essentially doing is they're giving the AI, right? That right now, one of the biggest stories about Apple is that they are actually selling out of the Mac minis, these small, uh, computers. Because people are buying them hand over fist and they are basically setting them up and they're putting an AI on it, giving it full control of the computer. And saying, I'm gonna give you a phone number, I'm gonna give you an email address, I'm gonna log you into all these accounts, go.

• 56:50Speaker 03

  And so I always go to and I say, right now, if we look back three years, most of this stuff didn't exist. Right? Chat GPT, AI agents, all this is all brand new. This is the worst the technology is ever going to be. And so there's a huge gap right now between how the technology works and how people know how to leverage it. I don't know if you guys saw recently, there was this huge breakthrough in, in science where these very sophisticated scientists came out and they said, look, 12 months ago, we didn't know how to use this technology. Now we actually know what questions to ask the technology. And so we started to solve really hard problems because we got better at using the tool. Right? It's like somebody who doesn't know how to use the shovel, all of a sudden learns how to use the shovel.

• 57:29Speaker 03

  So one thing that we've got for your audience is anyone who wants, anyone who signs up for CFO Silvia, uh, next 24 hours, we're gonna send them 100 prompts that I use on a periodic basis to better use AI to manage my finances. And what you'll see in these prompts is you can start to do things that you don't even know to ask. So like some of the popular stuff. What do rich people do to save money on their taxes? How should I take some of those ideas and implement them in my portfolio? All of a sudden, there's a bunch of stuff you just don't even know to ask. You don't know to Google this stuff. And when you go to, uh, whether it's an advisor, a friend, an assistant, whatever, and you say, hey, what are the things that I should be thinking about? They are limited by human knowledge. And so this is gonna get applied to every single sector.

• 58:14Speaker 03

  And that's why you see insurance companies saying, we're gonna charge less for premiums because software is better at driving, right? All the way through the economy.

• 58:22Patrick Bet-David?

  Yeah, and, and I love that, but also at the same time, I'm going to, what is your meeting with your investment banker or financial advisor gonna look like every quarter?

• 58:33Speaker 03

  You're not gonna have that.

• 58:34Patrick Bet-David?

  That's what I'm saying. If it's gonna go, I don't know if you're not gonna fully have one.

• 58:37Speaker 03

  No, they're gonna get automated away. They 100% are gonna get automated away.

• 58:40Patrick Bet-David?

  I think there will still be a role for the creative side and the advice side.

• 58:45Speaker 03

  But I think maybe this is something I disagree with Jeff on is, uh, and I like talking to Jeff because he makes me think much more critically about this stuff. But I actually would argue that if I said to somebody, hey, you need to be creative about whatever, art or prompting or whatever. If you simply ask the AI, come up with 20 prompts that I should ask about some topic. Or write me a prompt to create a piece of art.

• 59:07Patrick Bet-David?

  We'll have a president?

• 59:10Speaker 03

  Well, it begs the question of-

• 59:11Patrick Bet-David?

  Do you think we will have a US president?

• 59:12Speaker 03

  It begs the question of what is the role of the president?

• 59:15Patrick Bet-David?

  But think about it, what is the role of a financial advisor? What is the role of a doctor? What is the role of any of these jobs, right?

• 59:21Speaker 02

  That chairman.

• 59:21Patrick Bet-David?

  But do you think in 20 years we'll have a president?

• 59:23Speaker 03

  Yes, because I don't think that that job has a verifiable end state. Whereas I do think that a financial advisor, a lawyer, etc. Those are verifiable end states in most of it. Now, a lawyer starts to go to court and argue and all this stuff. But like, we get to a weird place where-

• 59:38Speaker 02

  Do we have automated courts?

• 59:40Speaker 03

  So that, I was gonna say is that-

• 59:41Patrick Bet-David?

  Have you guys seen that recent movie that just came out with Chris Pratt? Did you see the movie with Chris Pratt?

• 59:45Speaker 03

  No, I haven't seen it.

• 59:45Patrick Bet-David?

  Okay, can you pull up this movie with Chris? By the way, every-

• 59:47Speaker 03

  Well, I guess a good question. Do you think we'll have automated judges?

• 59:49Speaker 02

  Well, here's what I want to know. I think we have to define what AI, we think AI is gonna do. To me, it's more like a human-robot partnership. How can we make human, human beings more creative?

• 59:59Speaker 03

  Augment the human.

• 1:00:00Speaker 02

  Augment the human. And so you don't eliminate necessarily the role of the human. Maybe you eliminate some of the roles that humans used to do.

• 1:00:07Patrick Bet-David?

  Jeff, do you know what this movie's about? No. Let me tell you what this movie's about. Okay, this movie is about Chris Pratt, who's an agent. He's a detective. He gets accused of killing his own wife. Okay? He wakes up, he's sitting in a chair, handcuffs, shackles. He has 90 minutes where he's sitting in front of this judge called Mercy to make the argument why he is not guilty. If he doesn't, he's gone. If he does make the argument, he's free. And the most powerful, so the judge is an AI. You have to watch this movie, by the way. You have to watch this movie. You know how the movie ends? The movie, I'm not gonna tell you what ends up happening, but I'll tell you one special line that he says at the end that's scary as hell.

• 1:00:52Patrick Bet-David?

  He says, "I guess what we learned is, just like human beings can make mistakes, so can AI."

• 1:00:58Speaker 02

  Yeah.

• 1:00:59Patrick Bet-David?

  And it's about the judge when you see this.

• 1:01:02Speaker 02

  There's also, that's the thing. There's also a survival instinct in the human beings. We're not just gonna be, go passively be eliminated by AI. I think human beings, this is where the creativity comes in. The most creative humans are gonna figure out how to partner with AI to stay on top of the game.

• 1:01:16Speaker 03

  I just, I go back to, is there a verifiable end state of the judge? Yes or no? If the answer is yes, it'll be automated.

• 1:01:25Speaker 02

  If we have a lazy population that says.

• 1:01:27Speaker 03

  Where's the data coming from though? It may be, it may be better. Does a judge in the current judicial process end up helping or hurting humans when you add in bias, error, etc.? There's a huge debate that we could have in terms of the role of the judge.

• 1:01:44Speaker 02

  But aren't you just replacing human bias with AI bias?

• 1:01:47Speaker 03

  Well, so let me give you a good example is there's a study that shows if you are up for parole. You know, the worst time to go in front of the parole judge? Right before lunch. So they looked at throughout the time of day. Because people want to get to lunch. It's crazy. Look it up. There's a crazy study that shows if you go in front of.

• 1:02:05Patrick Bet-David?

  You're flirting with something very dangerous.

• 1:02:07Speaker 02

  No, see, that's the thing. I think.

• 1:02:08Patrick Bet-David?

  You're flirting with something. Let me explain to you why.

• 1:02:09Speaker 02

  Look, look, look, it's the hungry judge effect.

• 1:02:11Patrick Bet-David?

  I, I get that, but you're flirting with something very dangerous.

• 1:02:13Speaker 02

  But are you going to replace it with a worse bias from AI?

• 1:02:16Speaker 03

  Well, the question, the question becomes.

• 1:02:18Speaker 02

  We cannot, we cannot assume that AI has no bias.

• 1:02:20Speaker 03

  How much of the law should include empathy versus fact? And I don't have, I don't have a good answer for this.

• 1:02:26Speaker 02

  So you're going to put that into some coder's hands to code empathy.

• 1:02:29Patrick Bet-David?

  But you know what you're flirting with? Let me tell you what you're flirting with.

• 1:02:32Speaker 03

  There's no easy answer here.

• 1:02:33Speaker 02

  There's definitely no easy answer, right? But no, it's crazy. This is the conversation that people should have because you're right. The, the, the legal system, let's face it, it can be improved, definitely be improved. But this is where I think the creativity comes in. You give the tools to the judge or lawyers, whatever.

• 1:02:46Patrick Bet-David?

  Jeff, question.

• 1:02:47Speaker 02

  It's partnership of the act.

• 1:02:48Patrick Bet-David?

  You're flirting, you're flirting with, with, with.

• 1:02:50Speaker 02

  We got him now.

• 1:02:51Patrick Bet-David?

  But I'm, but I'm going to tell you.

• 1:02:53Speaker 02

  You've hit a nerve. You've hit something big here.

• 1:02:55Patrick Bet-David?

  I'm going to tell you why, though. I'm going to tell you why. Because where you're going, if, if you fully go there, you know how there's, uh, uh, what different parties do we have right now? We have the Republican Party, Democratic Party, Independent Party, you know, Communism, Socialism, Capitalism, whatever you want to call it, right? It is going to be human and the AI party. That's what it's going to come down to. And if you go there, guess what? They're going to win. If it's going to be those two together where you put them as the superior, they're going to win. Why?

• 1:03:27Patrick Bet-David?

  The instinct inside of you, whether we know it or not, we're super competitive. All of us. We're sizing each other up 24/7. The most noble person in the world, Mother Teresa, she's a psycho-competitor. Do you understand what I'm saying? Pastors are psycho-competitors. Joel Osteen, Billy Graham, it's in here. You can't get rid of it. It's in our gene. Okay? So then when it gets to a point and in your mind, you realize you can get AI on your side, then you see a couple of different people, you know, barrier to entry. What do you now have? It's about elimination of competition. Then what takes place? Now we're not banking on human team.

• 1:04:11Patrick Bet-David?

  Now we're banking on purely wealth and finance. And by the way, that's an empty place to be. Sergey Brin did an interview recently. I don't know if you saw this or not. And he's talking about what happened when he retired during COVID and how was the biggest mistake of his life. This is a guy that's worth a couple hundred billion dollars that just bought a $174 million house, I think in Miami. Rob, can you play this clip, please? Go for it.

• 1:04:37Speaker 04

  Retired like a month before COVID hit. And it was like the worst decision. I had this vision that I was gonna sit in cafes and study physics, which was my passion at the time. And yeah, that didn't work because there were no more cafes. I was just kind of stewing and kind of felt myself spiraling, kind of not being sharp. And then I was like, I gotta get back to the office.

• 1:05:03Patrick Bet-David?

  We're 260 today.

• 1:05:04Speaker 04

  Time is close. But you know, after a number of months, we started to have some folks going to the office and I started to do that occasionally. And then started spending more and more time on what later became called Gemini.

• 1:05:17Patrick Bet-David?

  Which is super exciting and to be able to have that technical creative output. I think that's very rewarding as opposed to if I like stayed retired. I think that would have been a big mistake. By the way, pause it. Just the way he speaks, does he sound motivational to you? Does he sound inspired to you?

• 1:05:35Speaker 04

  Sad.

• 1:05:35Speaker 02

  I used to see this all the time when I used to manage money for people. I used to tell them when they get closer to retirement.

• 1:05:40Patrick Bet-David?

  That's why you guys are fighting because he wants to get rid of you.

• 1:05:45Speaker 02

  So don't retire because what you would see is that people who retire completely commit to retirement. They were dead within a couple of years.

• 1:05:52Speaker 03

  You know, you know what is the dirty truth of this whole AI thing?

• 1:05:57Speaker 03

  I have a lot of friends that run a lot of companies. Right now, two things are true. They have never worked as hard as they are working right now because they see there is an arms race. And they want to win to your point. That competition, if you control the machines, if you control the intelligence. All right, that's the first thing. The second thing, their day to day life at work is harder than it has ever been. Not only is there the speed of the innovation and everything, they can't keep up. But AI is taking away all the easy tasks.

• 1:06:27Patrick Bet-David?

  Yeah.

• 1:06:28Speaker 03

  So the only thing that are left are all the hard tasks now. So they've got to spend, you know, in terms of like density of hard tasks in a day is actually going up. And so it's this weird dynamic of like you're promised an economic or societal like utopia and abundance. But actually the lives of the people who understand what's happening here, they're working harder. And they're spending more of their day on the hard problems, which I actually think is leading to many of them not being as happy.

• 1:06:53Patrick Bet-David?

  Yeah, so when I, when I see something like this and I see a guy having $266 billion. You know what he can buy? He doesn't just buy that 16.4 million dollar card. He buys the entire company. He buys the entire brand. He can buy fanatics. He can buy industries. He can buy leagues if he wants to. That's the kind of money that he has.

• 1:07:12Speaker 02

  Cause he's a creative guy. He has to have the creative outlet.

• 1:07:15Patrick Bet-David?

  But there is a problem though. There is a problem. This video here, um, I made this video a couple of days ago and I had my son record me. And it says, the only noise that scares parents. Okay, Rob, go ahead and play it.

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• 1:10:08Patrick Bet-David?

  Yup.

• 1:10:11Patrick Bet-David?

  What is the only noise that scares parents? Silence. Silence. I knew what it was before even... But check this out. Do you know what the point is with what we're talking about right now with AI? Here's the point. Check this out. What happens if all of a sudden this race goes so quickly and then we replace everybody? What happens when a bunch of people have a lot of time on their hands? The last time I had a lot of time on my hands, my hair was orange. And just letting you know, last time I had a lot of time on my hands. It is so important for everybody to have a job and do something. Even if everything gets automated, I don't want to stay home all day. Even if, if, if we have half the population staying home doing nothing, that is a horrible society.

• 1:10:54Patrick Bet-David?

  Horrible society. We have to have purpose. We have to be going after something. So to me, the only thing is...

• 1:11:02Patrick Bet-David?

  The question becomes if you allow AI to run with no regulation. If you allow it to, is this something that you want to highly deregulate? Do you want to leave it open to let it go? And typically, you know, as a capitalist, you want deregulation. You don't want regulation. You want it to go. But at what level? Will it be at a level of replacing human beings? Will it be at the level of replacing what people are doing? Like right now, how long ago do you think the NFL could have changed referees and done 100% AI? They could have done it five years ago. How come they don't do it? Do you want... Well, they are doing it, but they are doing it. They are, but do you want it to be 100% getting rid of the referee? So that's the thing is... I don't know about that because then guess what happens?

• 1:11:42Patrick Bet-David?

  First is the referee, then the first team announces an AI head coach. We don't want a head coach. We want an AI head coach. That's a job. Then it goes to, listen, XYZ company just built a running back and the NFL has agreed that each team can have three AI robot players. Now you got a robot player that I paid 88 million dollars and sponsorship. So that's this anthropic quarterback. This one has the OpenAI quarterback. This one has, the game changes in a very big way. If we go too much there. Go ahead. Final thoughts before we move on.

• 1:12:14Speaker 03

  The NFL is interesting because they're trying to figure out, you know, did the ball cross the plane or not replay? All that stuff, right? I do think, I think as Jeff said earlier, is like this idea of human error is also a, an important point. So like baseball is actually the better example to me where there's a strike zone. When you watch a baseball game, they tell you whether it was in the strike zone or not. But there's still an umpire and the umpire still makes balls or strikes.

• 1:12:37Patrick Bet-David?

  I love that.

• 1:12:38Speaker 03

  Yeah. And so.

• 1:12:39Speaker 02

  Human, human robot partnership.

• 1:12:41Speaker 03

  Yeah. And so I do think that there is this, this transition period where people are trying to figure this out. The last thing I'll say about this whole thing though, is my number one piece of advice for people is to start using the technology. Because the one thing that I know for sure is you are going to get left behind if you use none of it. Now, how extreme is the impact is up for debate. But if you are not using this technology on a day to day basis, you are going to fall behind. And so you can start, you know, replace some of your Google searches with using AI, use it at work. Right? You know, you can start slow, but if you are not using this stuff, you're going to be left behind.

• 1:13:16Patrick Bet-David?

  Yep. I don't, that part I don't disagree, but it's very important to realize. By the way, we played a clip the other day in 2022, October 17th, when I said Dow is going to go to 50,000 by 2026.

• 1:13:27Speaker 03

  You nailed it.

• 1:13:27Patrick Bet-David?

  And, and I, yeah, I nailed it, but I'm telling you very soon, this whole political party concept could go away and it could be human versus AI and that could be 20 years away.

• 1:13:37Speaker 03

  But you know, you know what's funny is like, if you look at how Trump won in 2016, there's now a bunch of like information that's come out where basically they were selling the red hats and they were using that to get the data to then put into look alike audience on Facebook. They were using the Facebook advertising. Like that wasn't quote unquote artificial intelligence, but that look alike audience technology is machine learning and all this type of stuff.

• 1:13:58Patrick Bet-David?

  For sure.

• 1:13:58Speaker 03

  Right?

• 1:13:59Patrick Bet-David?

  We, we do it ourselves for sure.

• 1:14:01Speaker 03

  And so it's like whoever starts to use the technology more and more.

• 1:14:04Patrick Bet-David?

  Only if human is above. It's the only thing, if that stays above, if all of a sudden, look, look what happened right now. Birth rate in America, 1.58. You know, last year we only had 3.6 million babies born in America. Do you know how many babies we had born in America in 1940? 3.6 million. But we did it with a hundred and fifty million people.

• 1:14:25Speaker 03

  Yeah.

• 1:14:25Patrick Bet-David?

  And we only did three point six million with three hundred and forty million people. Do you know, America, three times, we went on a run of four million plus babies every year. Once we did it five years, once we did it seven years, once we did it eleven years. The most babies we ever made in a year is what, four point three million babies? So then we, you go through a list of why we're not making babies anymore, right? Okay. So one is, I think it's called Envion, the introduction of, uh, uh, what do you call it? Birth control pills. I think the year is nineteen sixty, that it was FDA approved and it was only available to married women in certain states. Now it's everywhere, right? Then you have Roe v. Wade, which abortion, sixty-five million kids we've killed the last fifty, sixty-something years, right?

• 1:15:09Patrick Bet-David?

  That's the real Holocaust that some people talk about. Then you have in nineteen fifty-seven, which was the highest birth rate we ever had in America, that's documented, three point seven seven. That year, women were in the workforce thirty-five percent of the time. Today, women are in the workforce sixty-five to seventy percent of the time. Very different. You know, that whole dual income, we want both to go to work. So when you look at the stats, you're like, yeah, let's get women working as well. This is gonna be great. We have double the workforce. Uh, birth rate dropped. What else? Um, you know, people were having kids at twenty-two, twenty, uh, twenty-three years old. Now they're having kids at thirty years old, thirty-two years old, thirty-four years old. So some of the movements that we adjusted, we took a different kind of a hit.

• 1:15:52Patrick Bet-David?

  So the only thing for me is like my, you know, my thoughts when it comes down to stuff like this, we have to be very careful that we don't over-edify AI to human. And if it goes that way, you will be a slave to AI in no time. It will own you in no time.

• 1:16:10Speaker 03

  If you think about this, right? So like one of the, the core principles that I usually revert to when I'm making kind of evaluations of this stuff is, does it hurt somebody else? Right? If it hurts somebody else, then, you know.

• 1:16:20Patrick Bet-David?

  Not yet, though.

• 1:16:21Speaker 03

  Well, but there's things. You make that, but other people don't. No, no, of course. But like, if you think of this phone, right? And you say to yourself, okay, somebody making that phone is saying, oh, you can connect with your family, you can learn information, you can do all this stuff. Well, there's a bunch of studies that show scrolling social media is incredibly bad, not only for your focus, for, you know, your energy levels, but also just your mental health and, and kind of all this stuff. And so it's. As a society, how do we make a trade off between is social media regulated to a certain degree or not, you know, how should we think about this?

• 1:16:52Patrick Bet-David?

  I think it should be for kids.

• 1:16:53Speaker 03

  You can't, but that's the thing is then is age demographic.

• 1:16:54Speaker 02

  You can't do that, you can't do that, though, because if you and all the ethical people like you make the same decision, then who will be left to run the AI arms race? It'll be the psychopath.

• 1:17:02Speaker 03

  What I'm saying, though, is just like, I think as a society, it's not just AI. It's like, there's a bunch of these technology things we're trying to figure out, right? So like, self-driving cars is another one. We need to have verifiable, objective data. Self-driving cars are much safer than a human driver. There are a mass amount of people who are fighting against this, saying we should not have self-driving cars on the street.

• 1:17:22Speaker 02

  It's a Dunning Kruger effect. Everybody thinks they're above average drivers.

• 1:17:25Speaker 03

  So you want to know what I do at dinners now? Whenever I host dinners is, we had a big conference last week and I had a dinner and there's probably 25 people or so, and I asked, I said, in this room, how many of you guys use AI on a daily basis? You know, kind of business crowd, everyone raised their hand. I said, great, how many of you think that your job is going to get replaced by AI in the next five years? Not one, not one person raised their hand. I said, well, listen, by the odds, somebody ain't going to be here in five years. It's just nobody thinks it's them.

• 1:17:47Patrick Bet-David?

  Yeah, yeah. No, I get that. Let me get to this next story, which has to do with this. And I'm going to come to you first, Jeff. Farmers are aging.

• 1:17:55Speaker 03

  Perfect.

• 1:17:56Patrick Bet-David?

  And their kids don't want to be in the family business. This is a Wall Street Journal story. This is the very, very important of what's taking place. It's a great story. Don Gounip is running out of time. The fifth generation farmer still wakes early in the morning to tend to roughly 1,000 acres of corn and soybeans and 40 cattle, but for four decades of grueling work about with, dealing with prostate, cancer and surgery to replace both of his hips with titanium implants, has taken a toll. The 74-year-old estimates he can maintain the current workload for a couple more years. 74 years old. Under the gaze of generations of the Gounips, the black and white photos, he gathers his

• 1:18:41Patrick Bet-David?

  four siblings to chart the future of their family's farm and contemplates a day where they no longer cares for the land.

• 1:18:51Patrick Bet-David?

  That runs on that road. It's his family's road. The natural choice to take over his son or daughter left for college and now working corporate fields. His siblings made the same decision. It's disappointing to me, he says, holding back tears. That's the way dice, the dice were rolled and you have to accept what life gives you. The number of farmers in America have been shrinking for years, but rising costs and weak commodity prices are pushing more families out at a faster rate. In 2015, 315 farms filed for bankruptcy, up 46% from 2024. U.S. Core Data shows those left are aging. There are more farmers 75 and older than under the age of 35, according to the U.S. Department of Agriculture. They are facing tough choices and tougher prospects.

• 1:19:34Patrick Bet-David?

  Family agriculture is in crisis and American farmers and ranchers are fighting for their livelihoods, says National Farmers Union President. What do you say, Jeff?

• 1:19:43Speaker 02

  This is gonna sound cold, but this is, the key here is family farms. Family farms are just uncompetitive. Factory farms are far more competitive, far more productive. The cost of food goes down, which is, as a society, what we want. We want cheaper food. In fact, we've been so successful at it, our poorest people are more likely to be obese than not. So what the market is saying in a self-organizational structure, that family farms cannot compete. And it brings us back to the AI argument. We've been through this before. In 1890, 90% of the American workforce were farm workers. Either you owned your farm or you worked for somebody else. By 1900, it was down to like 40%, 30%. It only went further from there.

• 1:20:24Speaker 02

  So the only question, bring us back to AI, is we're doing the same type of thing here, technological revolution. Will human beings be able to be creative enough and stay, as you say, Patrick, stay on top of the heap enough? So that we just reinvent new roles? Because people don't want to work, people want to survive, there'll be a place for creativity, that kind of thing. The only question for AI is whether or not this is actually different. You know, they keep calling it the singularity. I'm kind of doubtful about that. I mean, it's gonna definitely revolutionize the future. But as far as economic processes are concerned.

• 1:20:57Speaker 02

  You know, we've eliminated industries before. You used to go in an elevator in New York City in the 1920s. Somebody had to press the button for you, right? We don't miss the elevator operators, right? We don't miss telephone operators. In fact, we would not have had the Internet if it hadn't been for the elimination of telephone operators. We automated that process. Where did the telephone operators go? Where did the elevator operators go? They found new employment doing something else. So as AI takes over more of the mundane stuff first, does it invent? Do people invent new industries and opportunities to absorb the rest of the labor force? There'll be a shift, not an elimination. That's the optimistic take. I don't know that for sure. None of us know that for sure. But that's the optimistic take. And this is part of it. Moving unproductive farms out of the system because they're unproductive.

• 1:21:41Speaker 02

  They can't compete. That's a societal good. Nobody's making that decision. The marketplace is making that decision. And over time, people who used to run farms, who used to work on the farms, will migrate to something else, which is exactly what this story is telling us. There is a hopeful element in it. Pomp.

• 1:21:59Speaker 03

  I think there's three things on this. The part this article left out is definitely like, big farming is somewhat of an oligopoly and definitely has made family farming very difficult. If you go talk to farmers, they actually point to that as the biggest kind of culprit. They'll also point to things like tariffs, etc., that may have had smaller impact. But the big thing is just like, you know, the John Deeres of the world, etc., have had this consolidated power. There's this great book, and whenever I come on here, I like to bring kind of gifts for the audience, maybe. And this book, I think, is probably the single book I've read in the last year that has made me think differently about a bunch of things. It's called Leaving a Legacy. Basically, what this guy does is he looks at society and he says, "Hey, there's things that we have been convinced of that may not actually be the right way to think about this." And he comes at it from the perspective of,

• 1:22:42Speaker 03

  if you want to build, you know, a thousand-year family, if you want to think very long-term. And three key things he talks about. One is nepotism. We've been told that nepotism is a bad thing, but he actually uses the example of family farms. He says, if you're a fifth generation farmer, you don't go and try to find who can get the extra 15% yield out of your farm. You think about, let me raise my son or daughter to take over the farm because this is provided value. Yeah, this is provided value to our family and food, et cetera, and help us get a living. So he's got a bunch of stuff there. Second thing is philanthropy. He talks about the idea that we've somehow in this bureaucratic process been convinced that, you know, giving water to kids in Africa, very noble cause. But most people who do that are never going to actually meet those kids. And yet in your own neighborhood, in your local community, there's a bunch of people who need help.

• 1:23:25Speaker 03

  And so philanthropy used to be this thing that was more kind of local rather than global. And so we've gotten away from that. But then the third thing he talks about is he spends a lot of time talking about this idea that as individuals, we have been convinced that everything that we work our entire lives for, we should not give to our children. We should not actually pass that wealth on to them. And he goes right at the heart of many of these issues, which I think consensus has been reached. His point is if you think long term, then you need multiple generations to accomplish things. He goes back to the farmer. But the other thing he says that I think is really important, feeds into this AI, feeds into the farm, et cetera, is a lot of people don't want to give money to their kids because they say, I'm going to mess them up. His point is, well, no, you just didn't raise your kids right then.

• 1:24:08Speaker 03

  Because there's plenty of families who pass on money through generations. And if they did a good job raising their kids, then their kids aren't messed up.

• 1:24:13Patrick Bet-David?

  I'm 100% aligned with everything you said right there.

• 1:24:16Speaker 03

  Yeah, fascinating book.

• 1:24:17Patrick Bet-David?

  That is a topic that's been very important to me the last five years with generational planning. I brought a guy on the podcast, probably 10 years ago, when I had my first son, second son. He was a guy that deals with the billionaire families in Seattle. And he tells a story about the Franklin Templeton story, which apparently they allowed him to tell the story publicly. They had 16 grandkids, of which 15 of them had drug and alcohol issues. And only one of them was the one, again, this is him telling the story on what he shared.

• 1:24:53Patrick Bet-David?

  And, and he said typically by the time a person like me shows up, it's too late. You need me before you have kids. You need me to start thinking about the stuff before. And then there's a bunch of legacy planning events you can go to, to talk about what it looks like. G1, G2, G3, G4, G5, and it's very enlightening. So, uh, I just ordered a book myself right now when you recommended it. So, uh, we'll see how that book is. All right. Let's get to the next story. Next story I want to get to is which one do we want to go to? There's so many. Can we give a shout out to this Hermès CEO? That he rejected financial predator Jeffrey Epstein's outreach. I mean, we're not going to go to the other Epstein stories. We'll go on that on, uh, on, uh, Friday.

• 1:25:30Patrick Bet-David?

  But here's Hermès CEO. Okay. This guy was approached allegedly by Epstein. Rob, I think this is on page seven. Is that him? Is that the, the, yeah, there you go. So let me read this to you. Everyone's being hit up in a negative way. Let's give a good story here. Axel Dumas told Reuters that Epstein approached him in 2013 as a company was defending itself against a hostile takeover attempt by Louis Vuitton. I think I was a target. I was a young CEO and we were in the middle of LVMH affair. He was a financial predator. Dumas was quoted as saying he already had a hateful reputation. Documents released by the Justice Department

• 1:26:12Patrick Bet-David?

  showed that Epstein sent several messages to Dumas assistant in 2013 and 2014, asking for meetings with the CEO. Epstein also sought the company's help in designing his private jet, but Hermès refused. Dumas told Reuters that he met with Epstein once in March 2013 during a company event at an, um, Adelair where the brand makes its product. According to Dumas, Epstein was not on the guest list. Indeed, he jo- instead he joined a group that was inclu- that included an award-winning director, Woody Allen, and his wife. Dumas told Reuters that Epstein kept trying to get an audience with him. After that, he tried three times to meet with me and I refused every time.

• 1:26:52Patrick Bet-David?

  The exec recounted, I can't tell you exactly what we knew about him or not, because I can't remember 13 years ago. But he already had a loathsome reputation. Uh, the DOJ files include- Small receipts are purchased made at her maid store in Paris show Epstein was a fan of the French brand that caters to the ultra wealthy and had email to ask if it could design my plane in one email to his assistant Epstein writes track down Axel Dumas in her me Hermes headquarters Paris the email shows Dumas on the system politely refusing Epstein's invest invitations to meet him in November 13 and January 2014 citing a prior engagement. What do you think about the story? What do you think about the story? Snyder, you go first.

• 1:27:30Speaker 02

  Yeah, I mean, there's two things here. One is he Epstein had a horrible reputation at that time, yet most people, it seems, didn't care. So I mean, this guy seems like he's the exception rather than the rule, which is incredibly sad and disappointing and disheartening. But I don't think it's necessarily surprising, which we've talked about many times before. The other thing is, the downside of something like this is guilt by association, right? And I think that's really the point of the story. The reason we have courts set up and we have a due process set up is so that something like this is doesn't happen. But when you get wrapped up into this, you know, sensationalized story with Epstein for really obvious reasons, things like this fall through the crack. So if you're just named in the Epstein files, suddenly you're you're guilty of association,

• 1:28:14Speaker 02

  which is, I'm gonna use the term, it's un-American.

• 1:28:17Patrick Bet-David?

  Pop, how do you how do you probably you get invited to a lot of stuff, you get you a lot of emails.

• 1:28:20Speaker 03

  I got something even even crazy for you. There's people in the chat are saying that I'm in the Epstein files. Right? So Saturday night when DOJ releases it also my phone blows up. The hell how I never don't know who this guy is never talked to this guy. So how am I in the Epstein files? See an email. It's a phishing email. The phishing email is somebody used my name with a at least got pulled up with a fake email. That's not my email. And it says that I am a there's I think there's two or three says that I'm an informant for the IRGC.

• 1:28:50Patrick Bet-David?

  What?

• 1:28:51Speaker 03

  And he better give me $10,000. And this is an email to Epstein's brother.

• 1:28:58Patrick Bet-David?

  Stop it.

• 1:28:59Speaker 03

  I swear.

• 1:29:00Patrick Bet-David?

  This is the funniest.

• 1:29:01Speaker 03

  This is in the DOJ Epstein file release. And so I'm like, wait, what the hell is going on here?

• 1:29:05Speaker 02

  Did you know that before?

• 1:29:07Speaker 03

  No, I had no clue. So in the file release. So the reason why I say this is is because now, remember, this is sent in 2020. This is when, you know, Bitcoin, everything was ripping, all this stuff. We were getting these phishing emails. Every person I ever talked to in my life, every person I ever knew, our investment firm, we were getting these all over the place.

• 1:29:26Patrick Bet-David?

  That is so funny.

• 1:29:27Speaker 03

  Now, here's what's crazy. Two things I took away from this. This is obviously not me, just for the record.

• 1:29:33Patrick Bet-David?

  So you're not part of the IRGC?

• 1:29:34Speaker 03

  I'm not part of IRGC and as one friend told me, he goes, "I knew it wasn't you because you would ask for more than 10K."

• 1:29:41Speaker 03

  But is now anybody, anybody who is caught in any email, who is mentioned, all stuff, they get, you know, kind of your guilt by association thing, that's very real. There's a lot of people caught up in this who had nothing to do, which hides the people who actually did do bad things. So by going and trying to label everybody, you actually are able to protect the people who actually did bad stuff, who should get found and prosecuted. The second thing is that when you go and you look at this, it took me 30 minutes, 45 minutes, to figure out whether this was a real email or not. I saw somebody tweet it and I said, "Is that, is that AI? Is it, is it real, is it not?" I had to go and I found the file, right, went to the thing, all this good stuff. And so what it started getting me to think about is like, this guy, not only did he resist it multiple times, but he explicitly says that he had, that he had a bad reputation.

• 1:30:27Speaker 03

  We've heard from a lot of other people who said, "Oh, I didn't know what his reputation was," all this good stuff. And so, you know, those people are lying, or they actually didn't know, right? They just got introduced to somebody, whatever, they didn't Google him, all this good stuff. It now makes me, every time I get introduced to somebody new, I do a little bit of homework, right? Especially when you know that they are kind of involved in some of these elite circles, etc. And so I think it's just a good reminder to everybody is, look, just know the people that you're doing stuff with and spend a little bit, a couple of minutes figuring that out. So you're not caught in any of these situations and good for this guy to-

• 1:30:59Patrick Bet-David?

  It is so true.

• 1:31:00Speaker 03

  To say, you know, "Hey, look, I don't want to meet you."

• 1:31:01Patrick Bet-David?

  I, I think this is actually a good story because every story is something bad. Brandon?

• 1:31:05Speaker 04

  Yeah, do you think they're doing the thing where they're associating so many people with it that they, and that gets discredited? So it like protects people who actually are associated with it? Because they're almost like diminishing the credibility of these reports that are coming out with the amount of people that are attached to it. Like it's, it's amazing that we're finding a connection potentially between like every major person out there in Epstein. So I almost wonder if they're trying to diminish the allegation of that. You know what I mean?

• 1:31:31Patrick Bet-David?

  You think that's what it is?

• 1:31:32Speaker 04

  Not with a specific case, but I wonder if they're...

• 1:31:35Patrick Bet-David?

  Hillary Clinton was being asked about it and she's like, "Release all the files. We don't know anything about this." You know, I didn't have a relationship with the fellow and then she gets asked about, how about Jelaine Maxwell? I think I met her at a couple, you know, Clinton Foundation events, but I don't have a relationship with her. Yet, at the same time, when her daughter got married, and Rob was saying this earlier, they had 500 people there. Nobody just walks onto that, and then Jelaine Maxwell has a seat right there, zoom in a little bit. That's Chelsea, that's the father, that's Jelaine right there at the wedding, so... It, it, look, there's different angles and different directions to go. All I'm saying is, for this specific story, to isolate, kudos to him for what he's doing.

• 1:32:19Patrick Bet-David?

  And it's something everybody has to be aware of nowadays, more than ever before. Let me get to the next thing. By the way, Tony Robbins and I were speaking, he said something to me. He said, "One guy came to me, I think he stole a lot of money from him, some big number, 400 million dollars." Massive number that he talks about.

• 1:32:36Speaker 04

  Somebody stole that from Tony?

• 1:32:37Patrick Bet-David?

  From Tony, in a business deal. He says, "Moving forward, what we did is, every single person that we went into business with, we did an extensive background check on them." So if you raise money from someone, they will do, like, they've probably done it to you multiple times. They'll do a background check, and they did mine, it was this thick, and the investor came to me, he says, "Okay, we're greenlit, moving forward." I said, "What did you find?" He says, "Did you know your license was suspended twice?" I said, "Twice? I thought it was once." He said, "No, it was twice." I said, "Wow, when was the second time?" He said, "Well, that's the worst thing that came out." I said, "Okay, that's great to know." So these people that are putting money, you gotta do the background check. I had the Heritage Foundation president yesterday here, Dr. Kevin Roberts.

• 1:33:20Patrick Bet-David?

  And their job for vetting Pomp, which is very interesting, is...

• 1:33:26Patrick Bet-David?

  You want to be a, you become a president. Let's just say Pomp becomes a president, but you've never been a senator, congress, so you don't know the swamp, you don't know the people. You're like Trump. You're not like Bush or Biden. They already know everybody, right? You come to us, we're Heritage. We vet the names and we have draft picks for each position. You want this? Seven names, draft pick, they vet. This background, this came out, this came out, this came out. Here's a, you know, what direction you want to go with these candidates that you have. Even with that vetting process, think about who gets through, right? Cause I asked the question yesterday, I said, if a person came to you that wants to give $2 million to the foundation, but if they were on the Epstein island, would you take the money? So now charities have to be careful with this. Campaigns have to be careful with this, right?

• 1:34:10Patrick Bet-David?

  This gets very tricky, slippery slope and you know, even there was this photo company that was taking pictures of kids in schools that the school all of a sudden said, "No, we don't want to deal with this company that comes and takes pictures of schools." Because the investor was on the Epstein list in a bad way, the school did a timeout. We're no longer taking pictures with this company. They went to a different direction.

• 1:34:34Speaker 03

  SPF. When he was giving out all the money to the politicians and stuff, if you did a background check on him, it would have came back super clean. So it's not just about the person, it's also where's the money coming from? Yeah. Right? So like it is, I mean, look, these are first world problems. If somebody's going to a foundation saying, "I'll give $2 million", but there is, like that is part now of vetting is who's the person and where's the money coming from?

• 1:34:58Patrick Bet-David?

  This, this kind of goes into where some of the high intense background check products being good.

• 1:35:05Speaker 03

  You see IMG Academy?

• 1:35:07Patrick Bet-David?

  What about it?

• 1:35:08Speaker 03

  Oh, pull this up. Do IMG Academy sanction? I just saw this, I think it was yesterday or the day before. IMG now had to pay a $1.7 million fine for accepting students in tuition linked to the Mexican cartel.

• 1:35:20Patrick Bet-David?

  Stop. Stop it. Go a little bit lower, Rob? Go a little bit lower, okay. An elite Florida campus, 1.7 point settlement for acceptance tuition from two students that tied with an ex and cartel. I'm G Academy, a prestigious Bradenton Prep School known as a powerhouse will work over massive some. Wow.

• 1:35:40Speaker 03

  But it's like serious.

• 1:35:41Patrick Bet-David?

  We were there, we were there a few months ago, or someone to one of their camps.

• 1:35:44Speaker 03

  US Treasury Department, I mean, this is like serious stuff. Now, again, how many students go to that school over all these years?

• 1:35:49Patrick Bet-David?

  How do you track it though?

• 1:35:50Speaker 03

  Two students, and now you got headlines, you gotta pay 1.7 million.

• 1:35:53Patrick Bet-David?

  But how do you track that though? How do you know where the money is coming from?

• 1:35:56Speaker 04

  And that's a trade off if you try to go the route of tracking it, because then that's like control of your money.

• 1:36:00Patrick Bet-David?

  Federal official who didn't name the students or specify the sports they played, said IMG accepted the tuition of 98,000 for one and 102 for another, from two specially designated national individuals who provided money and services to sanctioned drug cartels. But how would they know? How, did they, because the only way they're paying a fine is because the paper trail showed that they knew where the money was coming from and they accepted it.

• 1:36:25Speaker 04

  The bank should have known. I mean, that's a KYC issue. The bank should have known that this was dirty money.

• 1:36:29Patrick Bet-David?

  Know your clients, yeah. Go a little bit lower, go a little bit lower.

• 1:36:33Speaker 04

  Which raises other questions, but.

• 1:36:36Patrick Bet-David?

  There it is. So it was hit with 89 penalties for violating the foreign narcotics, kink pin, sanctions, regulations.

• 1:36:43Speaker 04

  The bank should have known that these individuals.

• 1:36:45Patrick Bet-David?

  So why are they paying the fine?

• 1:36:48Speaker 04

  I don't know.

• 1:36:48Speaker 03

  There's always a lot of details to this stuff.

• 1:36:50Patrick Bet-David?

  Guys, you guys are the smartest.

• 1:36:54Patrick Bet-David?

  Don't let AI do this to you. I'm expecting an answer from you guys.

• 1:36:57Speaker 04

  Banks get away with things.

• 1:36:58Patrick Bet-David?

  Can you, can you?

• 1:36:59Speaker 03

  But if you look at this, right, like there's also a bunch of companies now that have all popped up that first started crypto, now they're doing in the traditional banking world, tokenization, all that stuff. They're gonna be doing this stuff just trying to figure out, you know, where do these assets come from? And it's all like CYA stuff.

• 1:37:13Patrick Bet-David?

  But you know what this tells me? This tells me we need a product for this.

• 1:37:15Speaker 03

  Yeah.

• 1:37:16Patrick Bet-David?

  This is a big problem to solve. You need it moving forward.

• 1:37:18Speaker 04

  And I mean, not to get off topic, but I mean, they say that if it wasn't for drug money in 2007, that the whole banking system would have crashed. So it's probably not a thread that they want to pull on.

• 1:37:27Speaker 03

  Wait, what?

• 1:37:28Patrick Bet-David?

  Wait, are you supporting drug money coming?

• 1:37:30Speaker 04

  I'm not, I'm saying that the banking system allegedly depends on it according to what reports said in 2008.

• 1:37:37Speaker 03

  2008, the banking system didn't crash because there was drug money?

• 1:37:40Speaker 04

  Because there was drug money in the banks.

• 1:37:42Patrick Bet-David?

  Who said this?

• 1:37:42Speaker 04

  There's a report, there's articles that say that. Yeah, not to go down a rabbit hole, but that was a, that was a big...

• 1:37:48Speaker 03

  He didn't even go to Google, he went to ChatGPT.

• 1:37:50Patrick Bet-David?

  No, Brandon is like, alright, while we're doing this, while we're doing this, can we go to New York? Because Mumdani wants your money, folks. And honestly, he's getting sick and tired of the fact that the governor's not supporting him raising taxes, and it's not cool. It's not cool. And they forced him to do this. You know what he sounds like? He sounds like the spouse that hits the wife and says, "You made me do this. I would have never done this to you. You made me do this." Mumdani sounds like that. Uh, Rob, do you have the clip? Is this the one, Rob? The one that, um, this is the one? Okay. Watch this here, folks. Go ahead.

• 1:38:23Speaker 04

  What I would rather do is ensure that they remain as they are, so that the city can be on firm financial footing. However, in order to get to this point of closing the gap on both this fiscal year and the next fiscal year, we are forced to raid the rainy day fund, the retiree health benefits trust reserve, and to increase property taxes across these other years.

• 1:38:43Patrick Bet-David?

  There you go. Okay, so what is this one? What is the next one, Rob? That you have?

• 1:38:47Speaker 03

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• 1:41:19Patrick Bet-David?

  Play?

• 1:41:19Speaker 06

  Increase. This would effectively be a tax on working and middle-class New Yorkers who have a median income of $122,000. The second path also requires us to raid our reserves. It would mean withdrawing $980 million from our city's Rainy Day Fund in fiscal year 2026, and $229 million from the Retiree Health Benefit Trust in fiscal year 2027. These are steps that have been taken before, but only in moments of extraordinary external crisis. Mayor Bloomberg's response...

• 1:41:51Speaker 04

  The 2008 financial collapse and Mayor de Blasio's response to the enormous revenue shortfall caused by the pandemic. We do not want to have to turn to such drastic measures to balance our budget.

• 1:42:02Patrick Bet-David?

  That's a threat. That's a look.

• 1:42:04Speaker 02

  That's the point. It's blackmail.

• 1:42:05Patrick Bet-David?

  Yeah.

• 1:42:06Speaker 02

  This is totally blackmail.

• 1:42:07Patrick Bet-David?

  Continue.

• 1:42:08Speaker 02

  We saw it happen in the UK.

• 1:42:09Patrick Bet-David?

  Be careful though. The guy to your right lives there. So you go ahead. Continue.

• 1:42:12Speaker 02

  We probably agree. But we saw it in the UK. What happens is leftist governments come in and they say, oh my God, we just discovered these numbers and these numbers are horrific. The only way we can get out of this crisis is if we tax the hell out of everybody. I know, by the way, we're raising expenses, you know. We're going to raise expenses to all our, to do all the stuff that we want to do. The UK did that in 2024. The Labour government comes in, they say, oh my God, we have this massive shortfall. We now have to institute a payroll tax, which eventually created lots of job losses on top of everything else. But typical playbook. That's what, that's what happens. And the other side of that is if you don't give us the money, look at, I mean, look at the language you use.

• 1:42:52Speaker 02

  The only time we've ever done this, 2008, 2020, it will be catastrophic unless you get the state government to fund every last thing that we want the state government to fund.

• 1:43:03Patrick Bet-David?

  Pump.

• 1:43:04Speaker 02

  I got a lot to say about this because we warned everybody this was going to happen.

• 1:43:11Speaker 02

  How funny is it that the guy who promised free transportation, free food and free childcare is now saying we ain't got enough money? Well, the first thing you do is stop giving out free stuff. That's the first thing. The second thing is he said that we have two options. Those two options, oh, you already found it. Yeah, you're already on top of this. All right. So the second thing is that he says we got two options. We can either have the New York state increase our budget or we could tax the hell out of homeowner or the rich and the profitable businesses. Well, we got a third option.

• 1:43:46Speaker 03

  Why don't we just spend less money? You may say, how do we do that? Well, back in this tweet, I sent to him, to our amazing mayor on January 29th, I responded to him and I said, hey, let me give you a couple of examples. Cause he announced these chief savings officers. And I said, alright, well, if there is these chief saving officers, just search my name in chief savings officer. I said, let's make the big cuts, right? I said, New York City needs a leader with a backbone to make the hard decisions. I believe you're young and enthusiastic enough to pull this off if you wanted to. For example, there's three to four billion dollars of annual savings that could be captured if you merely stop the aggressive enhancement to city workers' retirement benefits, and you cut the ridiculous administrative bloat inside the Department of Education. And you could accomplish this without losing any teachers, firemen, police officers, or city workers. You wouldn't have to raise taxes on anyone.

• 1:44:30Speaker 03

  Every hospital and school would stay open. And you don't need the chief savings officers. So, there is the closing of this gap by him simply just saying, we are not moving forward, going to keep increasing aggressively the benefits to all of the retirees. So people who aren't retired yet, we're just gonna stop making bigger and bigger promises to them. Just keep it where it is. And then, 40% of the New York City budget goes to the Department of Education, and the number of administrators there has absolutely exploded. And so when you look at this, you start to say to yourself, this is not a revenue problem. This is a spending problem. And if they have a 122 billion dollar budget, the state of Florida is 117 billion. There's 15 more million people that live in the state of Florida than in New York City.

• 1:45:12Speaker 03

  How the hell is New York City spending more money than the entire state of Florida on a budget?

• 1:45:18Speaker 02

  It's not a spending problem, it's a philosophy problem.

• 1:45:20Speaker 03

  It's crazy.

• 1:45:21Speaker 02

  Mandami was, he's exactly who we thought he was. And he advertised us the entire way.

• 1:45:25Patrick Bet-David?

  I actually love that he's coming through.

• 1:45:27Speaker 02

  Yeah, people's...

• 1:45:28Patrick Bet-David?

  I love that he's doing exactly what we thought he's gonna do.

• 1:45:30Speaker 02

  People voted for this. They voted for the fantasy and the fairy tale. And once you vote for it, you're kinda stuck with it. And that was, that was the, that's the political process that goes on here. Is that you, you vote for all the stuff, and then the blackmail happens to make sure that it happens.

• 1:45:47Speaker 03

  Well, you wanna, you wanna know what I think's gonna end up happening?

• 1:45:48Patrick Bet-David?

  Go for it.

• 1:45:49Speaker 03

  He ain't gonna, he ain't gonna get any of this done.

• 1:45:53Speaker 03

  No way. You know why? He's saying he's gonna raise property taxes 10%. It's not like a 1% increase, 2% increase. The, look at the people.

• 1:46:02Patrick Bet-David?

  He said he's gonna raise property tax 10%.

• 1:46:04Speaker 03

  I think that's what he said, right? He said 10% increase in property taxes, 9.7% or something.

• 1:46:08Speaker 04

  Yeah.

• 1:46:09Patrick Bet-David?

  To who though? To who?

• 1:46:10Speaker 03

  Every voter.

• 1:46:11Speaker 04

  People above 122.

• 1:46:12Speaker 02

  In the clip you played, he said, "Look, this is gonna hit middle-class earners." Which are the people he's supposed to be protecting.

• 1:46:18Speaker 04

  Yeah. But the biggest barrier to so-

• 1:46:20Patrick Bet-David?

  So you're saying he's not gonna be able to do it? Do you think he'll be able to do it?

• 1:46:23Speaker 02

  32%, they will revolt.

• 1:46:25Speaker 03

  32% of New Yorkers own homes compared to the-

• 1:46:29Patrick Bet-David?

  It's the lowest in other states.

• 1:46:30Speaker 03

  The national average is at 65, right? So we're 32%. Of the people who own the homes, everyone thinks that it's just rich people. But actually, if you look in Queens, the Bronx, etc., the homeowners there, they're not quote-unquote "rich." These are middle-class, lower, uh, middle-class Americans. You're gonna raise their property taxes 10%? Stop.

• 1:46:49Speaker 04

  And take their retirement money.

• 1:46:50Speaker 03

  Stop.

• 1:46:51Speaker 02

  That's, that's-

• 1:46:51Patrick Bet-David?

  Who does he need? Rob, who does he need for that to, for that to happen? Whose approval does he need?

• 1:46:57Speaker 02

  He needs the state government. He needs Hochul to get on, and get on board with it.

• 1:46:59Patrick Bet-David?

  But he's trying to get around Hochul. He's trying to do it in a way without needing Hochul.

• 1:47:02Speaker 03

  He's threatening.

• 1:47:03Speaker 02

  What, that he's threatening? Look, I'm gonna, I'm gonna decimate your core voter audience.

• 1:47:07Speaker 04

  I think it'd be the state congress.

• 1:47:09Speaker 02

  State?

• 1:47:10Speaker 04

  Cause they're, they're off her financial.

• 1:47:12Speaker 02

  This is New York City versus New York State.

• 1:47:14Speaker 03

  But you know what, you know what, uh, if you flip around to the other side? You wanna see the future of politics? This guy's an incredible entertainer. He had, look, think about this. Trump, remember when he did the tariffs? He had the science fair, uh, boards come out, right? And they had all the, the tariff rates and they were doing their science fair presentation. And everyone was like, "Look at these guys." You saw what Mom Donnie had? He had the science fair boards out, he was doing the whole, I mean-

• 1:47:34Patrick Bet-David?

  He's duplicating Trump very closely.

• 1:47:36Speaker 02

  He, he understands, he understands the game.

• 1:47:38Speaker 04

  They're all doing it now.

• 1:47:40Patrick Bet-David?

  Yeah, but by the way, I hope he comes through with all of it. I hope he comes through with it. I, I really hope he comes through with all of it.

• 1:47:46Speaker 03

  You get what you vote for?

• 1:47:46Patrick Bet-David?

  You know why though? No, let me tell you why though.

• 1:47:48Speaker 03

  Damn, Pat, come on.

• 1:47:48Patrick Bet-David?

  I'm gonna tell you why. I'm gonna tell you why. Every once- It took more of a turn than that. Every once in a while, the world needs to be reminded of what doesn't work. Every once in a while, you need a reminder. And if a guy like this comes in, by the way- During covid, what are the two states that lost a trillion dollars of wealth that left? New York and California. Do you know right now, the only state that has lost a trillion dollars of wealth on two different occasions is California. Hasn't happened in New York yet. That article hasn't hit yet, but it's coming soon if he continues the way he's doing. And I'm encouraging him. Please continue with all this stuff. Keep doing it. For some of you guys that are in New York that are like, but he's not a bad guy.

• 1:48:29Patrick Bet-David?

  It's okay, you know, we hate, you know, who would you have a Sliwa or who is Sliwa or who is Cuomo?

• 1:48:37Speaker 03

  Did you see, you saw, uh, this is very, uh, very sad, but, uh, I think that the number, uh, look up how many people died during the cold front. I think it was 16 or 20 people. So there's this standing, uh, philosophy that they take, they take the homeless people off, right? And, uh, and, and he didn't take them, uh, take them and he said, hey, if you want to stay outside, you stay outside. Obviously a lot of people died. Not everyone died from the cold front. Some of these are drug overdoses, et cetera, right? But, but definitely there are people who died, uh, cause they got left outside. But then I don't know if you guys saw recently, uh, the police, uh, shot and arrested a guy who ran at them with a knife. And Mom Donnie came out and he basically said, uh, I think that, uh, you guys should take the, the handcuffs off of him and let him go.

• 1:49:21Patrick Bet-David?

  I saw that.

• 1:49:22Speaker 03

  And so you have two things.

• 1:49:23Patrick Bet-David?

  And he went and visited him at the hospital. Is that the one you're talking about?

• 1:49:25Speaker 02

  He should have been visited by a social worker.

• 1:49:27Speaker 03

  Yeah. And so now you got, now you got two problems, right? One is, I don't think anybody who says, hey, if you run out of the cops with a, with a knife, right? You should be free. But the second thing is now you have the mayor who's, what is he going to inject himself into every single thing before the courts do? So what now all of a sudden, if you got to go to a jury, every, every jury member?

• 1:49:45Patrick Bet-David?

  I hope he continues. No, I'm telling you, uh, you know why? You know why? Because all the people that had the money and the resources in New York, you could have done more. You could have done more. I hope he continues. You guys, and I'm not talking about you. The people that don't want to say the wrong thing to lose customers, who are like, well, I don't want to say anything because I don't want to seem like I'm against Mom Donnie. The people that stayed quiet, I'm so glad you're getting what you're getting. I'm so glad you're getting what you're getting. By the way, kudos to the people.

• 1:50:16Patrick Bet-David?

  That got a ton of backlash that a lot of people said a lot of negative things about, who came out and said things. Kudos to you. Ackman was one of them. There's a few of them. You were out there saying stuff as well, but there was a few of them that were doing that. But the rest of you in New York, guess what? Your silence is causing this. Your silence. Your, I don't want to get the other, behind closed doors, some of people are vocal, but I hope he keeps pushing the envelope and he succeeds. I'm banking on this guy succeeding. We need a new case study of what happens when you allow somebody like, and by the way, this is a trifecta of a candidate because what you said right now

• 1:50:55Patrick Bet-David?

  is crime, right? Because that's safety. Then you have economical ideology, which is capitalism, socialism and communism. Then you have religious, where he's out there, you know, putting his hand on the Quran and speaking from the Quran on peace. So you have all three. And guess what scares some of the richer guys to speak against about? It's this here. They don't, they'll speak out against this, but this is why this is a perfect candidate that scares a lot of the billionaires and media people to say anything. And again, I'm rooting for you, buddy.

• 1:51:26Speaker 03

  Well, it's all, it's all, it's all rap.

• 1:51:27Speaker 04

  What about California, though? So why isn't, like, I would say, why isn't California a case study that scared people out of that, though? So?

• 1:51:33Patrick Bet-David?

  But it is, though. A trillion dollars left.

• 1:51:35Speaker 04

  But they're still voting for him, though. So do you think New York's ever gonna, like, vote somebody like this out again?

• 1:51:39Patrick Bet-David?

  No, but they, they, New York has voted Republican mayors. New York could have voted the mayor in a different way, and they didn't. So, by the way, these days of just, you know what? I don't deal with politics. I'm just gonna sit and grow my business and I'm not gonna do anything. Keep doing that. See what happens. There's a reason why eventually guys realize, we need an office in Virginia. We need an office in DC. We need an office in some of these places. Why? Because you need the help of some of these guys that are behind closed doors, or else guys like this are gonna run it and destroy. Maybe if you said, what is the greatest city in America? What is it? It's New York City. It's not even close.

• 1:52:19Speaker 03

  The crypto industry is a great example of this. The crypto industry for 12, 13 years said, hey, we're not into politics. Politics, we're outside the system. We don't care about all that stuff.

• 1:52:28Speaker 02

  It changed.

• 1:52:28Speaker 03

  Well, politics came for crypto and guess what? All of a sudden, those guys turned on a dime. They raised a bunch of money. They got Sherrod Brown, a bunch of these guys out of office.

• 1:52:36Speaker 02

  There's no atheists in foxholes.

• 1:52:37Speaker 03

  Listen, I will tell you right now, you go to Washington DC, you know, the number one thing that these politicians are scared of? The fair shake pack. They got a couple hundred million dollars and they are incredibly effective at going at some of these politicians. And so again, you know, money does have a huge impact on this stuff, but more importantly is that industry realized, hey, if we don't participate here, then we're going to get rules we don't like.

• 1:53:01Speaker 02

  But this is, this is part of, we've seen this before. We've seen this playbook in smaller ways. I mean, why do cities vote heavily democratic and have for decades? The reason is back in the sixties and seventies, they called it white flight. It was really getting away from democratic policy. So those who are in the middle class all moved to the suburbs. And what happens is the inner cities are left with either wealthy, ultra wealthy, or the vast majority are poor people. And the vast majority of poor people who get most of their every, their livelihoods, for lack of a better term, they get, you know, welfare and state aid through the democratic machine. So eventually you, the goal is to get rid of the safe people, to get rid of the middle class, and what's left will always vote for the uniparty or the single party, Democrats. That's, it's playbook as we've seen all, all throughout history.

• 1:53:46Speaker 03

  What a

• 1:53:46Speaker 02

  Same thing California, why is California one party state? Anybody who could leave, left.

• 1:53:50Speaker 03

  Well, why do you think Barack Obama and Hillary Clinton recently came out, started saying that the mass migration, everything was a mistake or, or all that?

• 1:53:58Speaker 02

  And homelessness in California? You're asking me?

• 1:54:00Speaker 03

  Yeah, I'm asking, no, I'm asking you.

• 1:54:01Speaker 02

  No, no, I, I think, I think where they're going right now is the following. The, the one part that I'm surprised Hillary's not distancing herself from, because they're going to lose, it's 10 out of 10, they lose. Is they are distancing from homelessness. She did say stuff about mass migration was a problem. She said that a couple of days ago, I think it was in Munich. I don't know where it was, maybe another place that she did, but they are still keeping the position of transgender interviewing somebody from that side. See, there are a lot of Democrats that don't subscribe to the transgender. You saw the $2 million lawsuit with the transitioner, the transitioner that came back and

• 1:54:35Patrick Bet-David?

  By the way, over the next five years, you're gonna see, in my opinion, hundreds of those happening all over the place. Doctors who help kids with puberty blockers are sitting around finding ways to get an insurance lawyer to protect them because they know they're gonna be targeted. It's coming their way in no time. You should have never touched the kids. You should have never touched the kids. So if you think about where politics goes away, pump, my opinion, is take Epstein and take the trans issue. There's Democrats and Republicans are like, uh, no, I'm good. I'm not there. Epstein, I don't care if you're Republican or Democrat, you're on the list and you did something, I wanna know about it, right?

• 1:55:16Patrick Bet-David?

  We're not, we don't do politics here. Eighty-five percent of us, ninety-five, ninety percent of us, we get on the same page. So I think this is where they're realizing twenty twenty-eight and midterms, they have to come a little bit to the center. If they don't go a little bit to the center, you got Maldani, you got AOC, you got all these guys. If you don't come here, they're worried what happens in twenty twenty-eight. So maybe it's even a, you know, a indirect way of Obama giving feedback to Newsom. Okay, in his very gentle way, cuz the way Obama will do it, it's a very massaged, gentle way to his own party. I think he is speaking to Newsom. I think they're worried about who's gonna be their leading candidate for twenty twenty-eight. AOC is being talked about whether she wants to compete. She's number two right now on Calci.

• 1:56:01Patrick Bet-David?

  If you pull up the list, AOC is number two on Calci. Maybe it's changed as of today, but Rob, if you pull it up. Number one is Newsom. I think number two is, yep, AOC is number two. Yeah, number one is Newsom. Go a little bit lower to see the rest of the names, Rob. So number two, Kamala, okay. Jon Ossoff and Shapiro and Kamala are third, so that changed. Shapiro came up cuz he wasn't third. Kamala was third. Prisker, down. Buttigieg, five, but even with Buttigieg. Did you hear what the stat came out about? How many African-American men voted for Pete Buttigieg? Did you see that number? No, how many? Zero.

• 1:56:43Patrick Bet-David?

  Zero. And Stephen A. Smith said on one of his shows, he says, "We just don't do that."

• 1:56:47Speaker 03

  Yeah.

• 1:56:48Patrick Bet-David?

  You can't, so they have to go back to common sense.

• 1:56:51Speaker 03

  It's, uh, if you really unpack, and I've been fascinated with, uh, Trump's ability to be an outsider and to win. Forget all of his policies, forget him as a person, just as a student of communication on the internet and in modern society. One of the things that, um, is kinda crazy, if you go on the internet and you look, there are people across all sorts of different demographics that would say, "Hey, you know, that's my president, that's the guy I voted for," all that kinda stuff. But also, there's a guy who's got, you know, gold toilets in Manhattan, has convinced, you know, farmers in Iowa that they're the same person, right?

• 1:57:28Patrick Bet-David?

  He speaks their language, though.

• 1:57:29Speaker 03

  But that's the thing is, I do think that the polished, uh, politician

• 1:57:33Patrick Bet-David?

  Yeah.

• 1:57:34Speaker 03

  has kinda gone to the side, and I actually think that's why Mam Dony is so compelling to people, is because he's speaking to like a millennial generation in their language, in their format.

• 1:57:43Patrick Bet-David?

  I'm so glad he's winning.

• 1:57:44Speaker 03

  Trump is FDR.

• 1:57:45Patrick Bet-David?

  I'm so glad he's winning.

• 1:57:46Speaker 03

  He's the guy who says, yeah, FDR was the same thing, you know, gold toilets, everything about that. FDR was the guy who said, "I hear you, I listen to you." People thought they could actually be heard during the Great Depression, of course. Trump, same thing. He got elected in 2016, I think the unemployment rate's fake. Rust Belt, lost all these jobs, "I'm gonna do something about it." He connected to people in the same way, even though he's not the prototypical, you know, red state rural area politician. That's what everybody else is trying to replicate. How do we become Trump? How do we find disaffected voices and become their outlet?

• 1:58:17Patrick Bet-David?

  Mm-hmm. Yeah, and by the way, let's do one last story before we wrap up, but those of you guys that are listening here, whether you agreed with Snyder or not, or you agreed with Pomp, they're officially on Menech. So you can Menech Snyder, Jeff, I call last name because in the military, we only do last name, Pomp, you know this. So, uh, you can message Snyder and get smarter, he's on there now, and you can do the same with Pomp and learn more about the software and different things they're doing. And then, Aceto's also there, okay? Brandon's also there if you wanna Menech him as well. But let's go to the last quote, last-

• 1:58:49Speaker 03

  We're all gonna compete over who can answer the most questions today.

• 1:58:52Patrick Bet-David?

  The, the, the, the competition's gonna be, who's gonna be the lightweight at the top? Uh, Alex Jones started answering his Menech this morning, so he's moved up to third place. It'll be interesting to see. The lightweight is wide open, but we'll see that. It's a very competitive, uh, climate on Menech. Uh, okay, so let's get to the next. What's the last, is there a story? You have strong opinions on, do you wanna go to the Colbert story? Or you guys don't have strong opinions there? You wanna go to Colbert, you wanna go to, uh?

• 1:59:19Speaker 02

  Budget deficit.

• 1:59:19Patrick Bet-David?

  You pick the story. Give me a good fiery story to wrap up with.

• 1:59:23Speaker 03

  Can I, can I give you one that we were talking about backstage?

• 1:59:25Patrick Bet-David?

  Tell me.

• 1:59:25Speaker 03

  That I, I genuinely would love to hear Jeff talk about? So, one of the theories, uh, a lot of great investors have right now is that deflation is a much bigger risk than inflation. I tend to agree with them in tariffs, uh, deportations, AI, robotics, all this stuff is very deflationary. Jeff was talking about this idea of if there is deflation, uh, then there may not be the debasement trade and all these things that people have been talking about. So maybe you wanna describe a little bit as to kind of, uh, your current viewpoint on there's this deflationary pressure, but what does that mean for the dollar or for asset prices?

• 1:59:56Speaker 02

  Yeah, well, I think a lot, what, what happens a lot of times is people create a narrative and then go looking for ways to support it. What I do is try to look at the markets in particular, never focus on one market or another. And see what they're telling me and then try as best as we can to construct a narrative about what the markets are saying. So start with something like the yield curve. The yield curve has been bull steepening since September of 2024. Bull steepening is a very negative deflationary signal. Let's be, let's, let's define our terms here. Cause you and I were talking about this and I know you, a lot of people don't realize there's two different forms of what is called deflation. One of them is very good, one that we really want to see in the, in the hope for AI is it creates this productive disinflation. We all know what productive disinflation is.

• 2:00:40Speaker 02

  You know, when we're younger, we know what it is intuitively. When we were younger, you know, you bought a fancy computer, it was really, really expensive. But over time it gets cheaper and cheaper and cheaper. That's not harmful deflation. That's, that's free market capitalism doing what it does well. That's not what the markets are saying. What the markets are saying is that, um, the economic situation is getting worse, not better. And therefore it's gonna lead to market volatility at the very least. It's gonna lead to economic volatility, which by the way, you've already seen, we had no job growth last year. An entire friggin' year without no job growth is gonna have downstream consequences. So what the markets are saying is that balance of probability, you're going to see interest rates go down and stay there for a pretty long time, which is not an inflationary situation, it's the opposite situation.

• 2:01:22Speaker 02

  And the counterargument to that is that in a situation like that, that's going to unleash the money printing machine of the government. The discussion that we were having is that the government doesn't actually have a money printer, money comes from the banking system. And if the banking system is not in the mood to create money, it won't. It won't matter what the Fed does, it won't matter what the federal government does, if the banks don't create money, there won't be money. And it's really not about supply, it's about circulation. Which is why we watch these signals like the yield curve. So the, you know, last year, for example, when everybody was talking about tariff inflation, sell America, Treasury rejection, the Treasury market itself was saying, I don't see any of those things. Yield curve kept bull steepening, which said, there is no tariff inflation, we have a bigger

• 2:02:06Speaker 02

  problem on the employment side, for macroeconomic reasons, not for AI, and that the outcome of that is going to be something that looks like a recession for too many people, if it doesn't actually become an outright recession itself. So in that situation, very different set of outcomes than dollar debasement, inflation and everything. So you start the Treasury yield curve and look at other assets like gold, if you're looking at strictly gold, gold goes parabolic, you think, well, there's dollar debasement. But gold can go up for other reasons. So you take gold and balance it against the Treasury yield curve, Treasury yield curve says, no dollar debasement, no deflation, what is gold saying? Gold tends to go up during periods when people want to own a safe haven. A safe haven, safe haven demand, looks a lot like what the Treasury yield curve says.

• 2:02:51Speaker 02

  If you're in China, for example, and we go through a deflationary period, as I just described it, macroeconomic downturn, you're not going to want to own, you want assets. They don't care about Jay Powell or Federal Reserve interest rates or the dollar, they're saying, do I want to invest in something in China? Hell no, I'm going to own gold. So gold as a signal wasn't about dollar debasement, it was about safe haven. That fits with the Treasury market, and it fits with a whole bunch of other markets as well.

• 2:03:16Speaker 03

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• 2:05:43Patrick Bet-David?

  You mentioned gold, what about stocks?

• 2:05:46Speaker 02

  Stocks volatility now.

• 2:05:48Patrick Bet-David?

  Volatility up or down?

• 2:05:50Speaker 02

  Both directions.

• 2:05:50Patrick Bet-David?

  Both directions.

• 2:05:51Speaker 02

  Both directions. So there's an anxiety that maybe there's something to the macroeconomic case that maybe AI won't be able to overcome with all of its positives. And believe me, I'm long run positive on AI for the reasons that we discussed. So you got market volatility in the stock market that is consistent with safe haven demand, treasury yield curve, bull steepening. You start to pull in all of these various signals that are coalescing on a, what we hope is an accurate narrative, but a common narrative, which is more of a recessionary downturn type of environment. And then you get the macroeconomic data that suggests, yeah, that's the case. At least for enough of the population that it becomes a major issue. Again, zero job growth for an entire year.

• 2:06:30Speaker 02

  That is an unhealthy economy. You don't just gloss over that. An unhealthy economy that gets more and more unhealthy. And I imagine most of the people watching me are saying the same thing. Yes, this is an unhealthy economy. This is a sick situation. So the markets are saying, yes, we hear you. Not only do we hear you, we're betting on the consequences of that unhealthy economy.

• 2:06:46Patrick Bet-David?

  What are you saying, though? Because right now, you got the story that also came out yesterday. US debt set to crush World War II record. I'm sure you saw that.

• 2:06:54Speaker 02

  Yep.

• 2:06:54Patrick Bet-David?

  As annual deficit explode to three trillion within decade.

• 2:06:59Speaker 02

  Right.

• 2:07:00Patrick Bet-David?

  So where are you going with this?

• 2:07:02Speaker 02

  What I'm saying is in, what I'm saying-

• 2:07:04Patrick Bet-David?

  There could be a possible market correction?

• 2:07:06Speaker 02

  Market, which market are you talking about? Stock market?

• 2:07:09Patrick Bet-David?

  Yes.

• 2:07:09Speaker 02

  That def, let's start with the deficit. The deficit, um, under these types of conditions, the marketplace, the general financial marketplace wants to own that debt because it is most liquid. Traditionally, bond markets, government bond markets, for a variety of reasons, and none of them are actually really good, they are the most liquid asset. So in a downturn, safe haven, you want to own US treasuries, regardless of the amount of treasuries that are printed. We saw this during the New Deal, heard the same arguments back then. You know, FDR is going to bankrupt the country, is going to explode the dollar, which he actually did. Treasury market, you know, interest rates are going to go double digits. They actually did the other thing. During the 1930s, treasury yields fell.

• 2:07:51Speaker 02

  They stayed down the entire decade because of demand for safety and liquidity, what's perceived to be safety and liquidity. So if you see the US government go absolutely ape shit issuing debt, pardon my pardon my language, I think it's appropriate here. We all agree that deficits are unsustainable, or deficits are a major issue. It's not an issue for the treasury market. And the reason why it's not an issue for the treasury market is because of this perceived demand for safety, which is the other side of gold and some other things. So that is a huge signal.

• 2:08:19Speaker 04

  Is it problematic for the rest of the world if the US isn't issuing all that debt, though?

• 2:08:23Speaker 02

  Yeah, that's actually, we don't have enough treasuries. I know that's gonna

• 2:08:26Speaker 04

  Meaning, there's not enough deficit spending?

• 2:08:28Speaker 02

  It's not the deficit spending, it's the financial instruments that are at the end of it.

• 2:08:31Speaker 04

  Isn't that what creates the treasuries, though, is the deficit spending?

• 2:08:33Speaker 02

  Right. It's a perverse situation where we actually need the government to spend, to create treasuries in order to satiate the market demand for it.

• 2:08:41Speaker 04

  Pump. That's trippy.

• 2:08:43Speaker 03

  It's, we come at it from different ways, but I think we agree in that I do believe people are drastically underestimating the risk of deflation. You know, I look at true flation over the CPI metrics. Trueflation is showing under 2% every single day this year. So we are, right now, this morning, they were at like 0.8% or so. And so what I believe is gonna happen is they are going to actually want the government to print more money, right? And we disagree a little bit in terms of how that happens. But if you have a deflationary pressure like this, we have been trained for the last 15 years, if the government prints money, you get inflation. But if you have tariffs, you have the deportations, you have the AI, you have the robotics, the government could actually go and try to stimulate

• 2:09:24Speaker 03

  the economy, bring down interest rates, print money, and you can still have that deflationary pressure. And so I keep calling it like a monetary slingshot, which is, in the short term, I actually think there's a number of assets that are gonna have some sort of headwind to them. So you may get that volatility in the stock market, Bitcoin's obviously down, you know, gold has kind of come off of the highs. But if they are going to go and do this kind of to address the the deflation, over the long run, they're gonna destroy the currency. And if they do that, then you're gonna wanna own these assets over the long run. So whether you're buying Pokemon cards, right, or you're buying, you know, in my case Bitcoin, gold, whatever. I think that you're going to do very well over the long run. And so what scares me is when people try to trade this stuff on a day to day basis

• 2:10:07Speaker 03

  because of the volatility, because of the announcements, because of the geopolitical kind of differences on a day to day basis. It's just very hard. And so it's more so just what is your in your portfolio for the next 10 years to benefit from something like this. And I think it's going to end up being those scarce kind of hard assets.

• 2:10:24Patrick Bet-David?

  I think equities is, you know, if you if you're too careful to try to time. We've all seen the chart of if you were, you know, you try to time the market and you were out for a period, it goes from 12.4% over last eight years to, you know, 9.1%. If you're out 20 of the days, you're at 6%. And how important it is to be there on the big days, when big days happen and be able to tolerate the bad days. But if you go, if you go away from equities long term, if you're somebody that's not what, you know, professionals that do this on a daily basis, it's problematic if you try to time it right now. And I do talk to certain people. I remember when COVID happened, one of my executives took out all their money out of

• 2:11:09Patrick Bet-David?

  equities when it hit 18,000. Remember when Dow hit 18,000? Everything out of equities. They lost 3 million bucks, took it out of equities, came back in equities, you know, at what? At 33,000. You know what it is to lose that 18 to 33,000? You're not going to get that back again. And these guys were in their, they were older, they were not younger. It's not like it was somebody that's 48 years old that could afford it. This was somebody that was a little bit older, closer to retirement that did something like this. Anyways, the goal is to get smarter and we delivered again today with Pomp, Snyder and Seto. Great to have you guys on. Gang, if anybody's watching this again, you got any questions for them, manact them if you want to learn more about.

• 2:11:51Patrick Bet-David?

  What they're doing with Sylvia, Sylvia, you can also monect him, he'll tell you more about it. Uh, but with that being said, there's a reason why maybe if Mamdani wins and keeps kicking ass, maybe this guy named Pampliano will choose to come back to Florida so we can do stuff like this more often. And maybe even with a live audience, I don't know. So maybe Mamdani is gonna push, pump out the next three years and says, look, you can bring the engineers here, just like Palantir just announced, they're coming back to Miami.

• 2:12:21Speaker 03

  I think you hired Mamdani as your recruiter.

• 2:12:23Patrick Bet-David?

  You voted for him, you got him, so you guys got him.

• 2:12:25Speaker 03

  I did not vote for him.

• 2:12:27Patrick Bet-David?

  Anyway, Scan, God bless, we'll do it again. Uh, the next live is what, Friday? What do we have going on tomorrow? Tomorrow's who? Kevin Roberts. Oh, Dr. Kevin Roberts, Heritage Foundation? Yes, sir. It's a little intense, the way it gets, it's intense the first 30 minutes, but I think you can enjoy the interview. Take care, everybody, God bless. Bye bye, bye bye.

• 2:12:45Speaker 04

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• 2:13:16Speaker 06

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• 2:14:01Speaker 06

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