back to indexE7: California's collapse, how SPACs are opening the markets for growth stocks & more
Chapters
0:0 The gang recap their summers
6:43 Is California collapsing? Why or why not? Has the one-party system failed?
14:5 Understanding the bureaucratic side of California's problem
20:37 AB-5 & the working rights of freelancers
27:11 How would AB-5 passing impact Uber & Lyft's long-term profitability & consumer experience, could franchising fix this?
34:45 California lagging in police reform, what tactical steps could be taken to stop deadly policing
46:13 Chamath on the most important economic event of the last decade & why he is now bullish on the market
50:46 Why technology companies should be going public sooner, how SPACs are allowing retail investors access to growth stocks
61:23 Election talk - who is in the lead ahead of the first debate?
72:21 Bestie recommendations
00:00:00.320 |
Hey, everybody. Welcome back to the all in podcast besties have reunited. It's been a bestie summer 00:00:06.480 |
Chamath. How are you doing? You're back in America? Yes, I'm back in America. Back in America. 00:00:12.000 |
Feels great. Good summer. Yes. I had seven weeks in Italy. It was really incredible. 00:00:18.720 |
What is the vibe in Italy post pandemic? Obviously, they had the roughest of any nation, 00:00:24.960 |
I think, except for China and Wuhan. With COVID-19. How's the psyche there? 00:00:30.560 |
No, it's incredible because they're I mean, they're so resilient, they basically decided 00:00:35.120 |
that they don't ever want to go through it again. So everybody wore a mask and people socially 00:00:40.880 |
distance there's a lots of dinners outside no restaurants were really seating people indoors, 00:00:45.360 |
you'd walk into a store and you'd have to put some, you know, Purell on your hands and wear a 00:00:54.640 |
50 cases a day. And then I keep looking at the news when I was there 60,000 a day here I was it 00:01:00.800 |
was just really, it was sad. And then on top of that to see the riots, the fires. I mean, 00:01:06.000 |
there's a you know, it's been a disturbing summer here. 00:01:09.440 |
How are you doing, David Sachs? You're back in San Francisco. And 00:01:15.280 |
you got to spend a little bit of time in an undisclosed location. As we know from the 00:01:19.200 |
last couple episodes of the podcast. How is San Francisco right now? How has your bestie summer 00:01:24.400 |
David Sachs: It's been great. Yeah, I was I guess I can now disclose that my 00:01:29.760 |
location was, was Mexico specifically Cabo. And that was it was a great place to be for 00:01:38.720 |
David Sachs: Yeah, exactly. But actually, it was great. It was a great place to be in the 00:01:45.200 |
early stages of the pandemic, because everyone was wearing masks, you know, they did take it 00:01:48.480 |
really seriously. And there were very few cases and seemed like it was under control, at least in 00:01:53.920 |
the area I was. And then, you know, we came back to San Francisco for school for the kids school, 00:02:01.440 |
which, you know, I'm not sure we have to be here. But, but that's, that's, that's what we came for. 00:02:06.080 |
Aaron Norris: Is the kids school actually open? Are they going to school? Or they keep pushing 00:02:10.080 |
it out two weeks like my kids are? David Sachs: Yeah, it's we don't, 00:02:12.800 |
they're not going in person yet. But I think they keep trying to figure out when they're gonna be 00:02:16.720 |
able to start doing that. So it's all zoom based right now. 00:02:19.760 |
Aaron Norris: Yeah, which means no learning, right? I mean, do you think these kids are actually learning on the school? 00:02:19.800 |
David Sachs: Yeah, I mean, I think they're learning on the school. I think they're learning on the school. 00:02:19.860 |
Aaron Norris: Yeah, which means no learning, right? I mean, do you think these kids are actually learning on zoom? Or do you think it's just glorifying? 00:02:25.940 |
David Sachs: A little bit. I mean, a little bit. I think it's difficult. 00:02:29.060 |
Aaron Norris: Yeah, we gave up on it. And Friedberg, are you there? 00:02:35.620 |
Aaron Norris: How's your best summer been during this crazy time? 00:02:39.460 |
Friedberg Kahn: I've been in the Bay Area. I've been crossing all seven layers of Dante's Inferno 00:02:49.780 |
outer layer of COVID to the middle layer of California's proposed wealth tax, to the inner 00:02:56.660 |
layers of extreme heat, smoke and the absolute central layer of pain. More recently, my three 00:03:03.620 |
year old daughter decided 34 nights ago to not sleep anymore. So yeah, we've been living the life. 00:03:10.500 |
It's been glorious. And I wear a mask now for COVID and then I wear another mask on top of 00:03:16.900 |
that mask for the smoke. So we're just living the California dream. 00:03:20.260 |
Aaron Norris: What my parents immigrated here for, you know, paradise. 00:03:23.700 |
David Sachs: Well, I guess that's a good place to start. And just if anybody cares, I spent 10 00:03:29.300 |
days in Malibu and had a great time. I guess nobody cares. Can't be how my best summer was. 00:03:35.620 |
Aaron Norris: Jason, how's your best summer? J-Cal, how's your best summer? 00:03:39.700 |
Jason Wong: You know, I've been lonely and I tweeted, "I'm lonely." 00:03:43.140 |
And I got about 50 phone calls from people who are like, "I can't imagine J-Cal being sad." But I 00:03:49.580 |
Yeah. I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, 00:03:50.580 |
"I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." 00:03:51.580 |
And I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, 00:03:51.580 |
"I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." And I'm like, "I'm lonely." 00:03:51.580 |
And I said, "What are the symptoms of depression?" Because I think I might have depression. And I 00:03:56.700 |
went through it and I was like, "I don't have depression. I have great empathy for all the 00:04:00.300 |
people suffering." And just being isolated, you guys know me very well, better than anybody, I like 00:04:07.820 |
to talk to people. And it's been really difficult for me to, I'll be totally candid, to be isolated 00:04:12.620 |
like this. And the podcast is great and doing this podcast is great. But man, I miss people. 00:04:18.140 |
I just miss people. What are the symptoms of your depression? Just before you were self-diagnosing, 00:04:23.100 |
I'm just curious. I was feeling just sad about watching the riots and watch people shoot each 00:04:31.500 |
other. And then watching the wildfires, watching people die unnecessarily. And then 00:04:37.740 |
watching the wildfires, watching people die unnecessarily. And then watching the wildfires, 00:04:37.740 |
watching people die unnecessarily. And then watching the wildfires, watching people die 00:04:37.740 |
unnecessarily. And then watching the wildfires, watching people die unnecessarily. And then 00:04:37.740 |
watching the wildfires, watching people die unnecessarily. And then watching the wildfires, watching 00:04:37.740 |
the wildfires, watching people die unnecessarily. And then watching the wildfires, watching people die unnecessarily. And 00:04:37.740 |
then watching the wildfires, watching people die unnecessarily. And then watching the wildfires, watching people die unnecessarily. And then watching the madness for the election. It was just 00:04:40.300 |
all becoming, I wouldn't say overwhelming, but it just made me very sad that 00:04:44.540 |
so many people can't go back to work. And then the stock market's ripping. And it's a very, 00:04:50.060 |
I don't know how you guys feel, but it feels very surreal, right? Because in our world, 00:04:54.380 |
and I don't know how your portfolios and investments are doing, 00:04:57.340 |
a lot of the companies we've invested in as angel investors are doing just wonderfully. And we're 00:05:03.980 |
investing more than ever, but then you turn on the television and it's like the doom scrolling 00:05:07.660 |
is crazy. So I had to just stop doom scrolling. I think that was the key thing, Chamath, was just 00:05:11.740 |
looking at Twitter is that the trending topics is so depressing and just so overwhelming at times 00:05:19.020 |
that I took three days off this weekend and went camping and I literally didn't pull up Twitter and 00:05:24.700 |
I felt much better. So I think it was really Twitter related, like just opening up the trending 00:05:28.300 |
topics. I don't know if you did that on your holiday in Italy, but it really is a quick way 00:05:32.700 |
to get depressed. The best thing is that I was using it at a different time zone. And so, you 00:05:37.580 |
know, I was basically out of the flow and it makes a huge difference because then you're not in the 00:05:43.980 |
emotional turmoil of people's immediate reaction. And so you can just kind of move on. And then 00:05:54.540 |
also I just had a really fun summer because I really tried to detach and not use my phone. 00:05:59.660 |
I kept my meetings to a few hours a day and then otherwise I was doing things. 00:06:07.500 |
I was like, "Hey, I'm going to go to my phone call to J Cal." 00:06:09.900 |
"Hey, J Cal, I saw on Twitter that you're sad and lonely." It's like, "Yeah, 00:06:14.300 |
yeah?" It's like, "Are you suicidal?" It's like, "No." "Okay, goodbye." 00:06:17.500 |
I'm too much of a narcissist to ever consider that. 00:06:22.940 |
But I do want to thank you, David, for having me down to Cabo. And we got to have some good times. 00:06:30.300 |
We watched some good movies. Gladiator, Extended Cut was great. Some other movies that we watched 00:06:36.300 |
could get us canceled. So we moved on. But I think that's the best thing about being on the show. 00:06:37.420 |
I won't admit that we watched History of the World or any other Mel Brooks movies, 00:06:40.620 |
but we had a good time. We played a couple of rounds of golf and that was good times. 00:06:43.260 |
But let's talk about California because I think we're all residents currently of California. 00:06:49.660 |
But let me just put it out there. How many people on the call are considering leaving California? 00:06:55.980 |
Is that going through anybody's mind right now? Because it's going through mine. 00:07:07.340 |
California is sort of emblematic of what could happen if you actually have the legislative bodies 00:07:15.420 |
plus the top sort of political leader up and down on one ticket. You basically have massive rife 00:07:26.220 |
incompetence and it's been compounded. People who are Democrats would have said, "Oh, the best thing 00:07:32.460 |
that can happen for Democrats is if you have local cities plus the state of California." And I think 00:07:37.260 |
that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. 00:07:37.340 |
I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's 00:07:38.060 |
a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. 00:07:38.540 |
Plus the state Senate, plus the governor as a Democrat. Republicans would have said the same 00:07:43.340 |
thing for Republicans. But as it turns out, it basically creates the worst outcomes. 00:07:49.100 |
And so instead, what you need is a little diversity of ideas and a little push and pull. 00:07:53.660 |
But California is like a bunch of clowns in a clown car right now. It's a joke. 00:07:59.260 |
But I'm not going to move. Now, a part of it I'm not going to move is my taxes I've set up in such a 00:08:06.860 |
way where California can't get access to most of my assets anyway. So they can pound cent. 00:08:16.220 |
Yeah. David, how are you? Sax, how are you feeling about California right now? 00:08:20.780 |
And just the craziness in San Francisco, the homelessness problem in San Francisco has become 00:08:26.860 |
acute during this. It's really getting crazy. And then the wealth task on top of it. 00:08:31.740 |
It's a disaster. It's a disaster. I mean, I'm not 00:08:36.460 |
leaving or anything, but it's certainly a topic of conversation that's come up a lot. And I do know 00:08:40.540 |
people who have left. I know a couple of people, prominent people in the venture community who've 00:08:47.580 |
recently moved to Austin. And it's a horrible time for the city and state to be proposing all these 00:08:55.340 |
new taxes. Just take one example. Because people are already realizing that because of COVID and 00:09:02.220 |
this new sort of work from home and Zoom business, it's going to be a lot more expensive. 00:09:06.220 |
Business culture where you can kind of work from anywhere that people are realizing they don't need 00:09:10.540 |
to be in San Francisco or in Silicon Valley anymore to be in the technology industry. 00:09:15.420 |
And so at precisely the time that people were reevaluating where they wanted to be, 00:09:20.380 |
realizing that they could be anywhere, California is now proposing to massively 00:09:25.180 |
increase the cost of being here. So it's horrible timing. And then you do have this 00:09:35.660 |
particularly with the sort of homeless problem. It just seems to keep getting worse. 00:09:40.540 |
And there's sort of this weird hostility to technology and tech workers here that I think 00:09:49.740 |
is somehow used as a scapegoat to prevent the city from dealing with its real problems. 00:09:54.300 |
And what do you perceive those real problems to be in the city? 00:09:58.060 |
I mean, you used the term homeless. I think most people looking at the problem, as one person 00:10:04.140 |
candidly told me, they're looking at the problem as a real problem. And I think that's a real problem. 00:10:05.260 |
And I think that's a real problem. And I think that's a real problem. And I think that's a real 00:10:05.660 |
problem. And I think that's a real problem. And I think that's a real problem. And I think that's 00:10:05.820 |
a real problem. And I think that's a real problem. And I think that's a real problem. 00:10:06.300 |
And I think that's a real problem. And I think that's a real problem. And I think that's a real 00:10:06.700 |
problem. And I think that's a real problem. And I think that's a real problem. And I wouldn't say 00:10:07.260 |
who said this, but it's a prominent person. They said, Jason, the issue here is this isn't a 00:10:10.860 |
homeless problem. This is a junkie problem. And they use specifics that I'm using that term because 00:10:15.500 |
that's the term to refer to people who are addicted to opioids, methamphetamine, fentanyl, 00:10:20.380 |
and that if you were to actually unpack what we're calling a homeless crisis, it's actually a crisis 00:10:25.420 |
of drug addiction, and specifically fentanyl. And I don't know if you guys saw, we're going to hit 00:10:29.580 |
something like 500 overdose deaths this year. We're going to double last year, and it's all 00:10:33.260 |
fentanyl, which is a particularly deadly drug. So how much do you think that is the problem, David? 00:10:40.700 |
Huge. You're right that homelessness is not the cause of the issue. Homelessness is the consequence 00:10:49.980 |
Long-term drug addiction and mental illness. I mean, it's the end state. And you're right, 00:10:56.380 |
the city is not really tackling the underlying issues. In fact, it's kind of aiding and 00:11:02.220 |
abetting them. I mean, how many millions of needles does the city give away every year, 00:11:06.540 |
and then it only collects a small fraction of them with the remainder ending up on the streets? 00:11:10.940 |
It's just, it's bonkers. And I think part of the problem is that we keep saying that until we 00:11:19.580 |
can't demand any improvement in the situation in terms of homeless people. We have this poop squat 00:11:29.020 |
in San Francisco that's literally cleaning poop off the sidewalks because homeless people are 00:11:35.260 |
using our sidewalks as like a latrine, basically, as a bathroom. And what you keep hearing is that, 00:11:41.820 |
well, we can't do anything about that problem until we solve the homeless problem. And certainly, 00:11:48.460 |
we should try to solve that problem. But I think that's the problem. And I think that's the problem. 00:11:49.560 |
But it's a very long term, you know, difficult and tractable problem. In the meantime, 00:11:53.580 |
we can certainly do things like demand that homeless people not do that. 00:11:57.860 |
Yeah, and the policing seem to there seems to be a distinct issue with policing right now. I 00:12:04.660 |
watched the San Francisco Tenderloin Twitter account, David Freeburg, and they've arrested 00:12:09.380 |
something like 260 meth and fentanyl dealers. But we have a DA Chesa, I believe his name is, 00:12:17.540 |
who doesn't believe in prosecuting meth. And he's been in the police department for a long time. 00:12:19.540 |
any of those crimes related to drugs or petty crime. 00:12:23.100 |
Freeberg, what has the city turned into for you as somebody who's been a long term investor 00:12:29.100 |
Well, I moved here after I graduated college in 2001, and I loved San Francisco. 00:12:39.240 |
I honestly, over the years, have found the traffic and the congestion and the buildup 00:12:46.820 |
I'm a little bit of an anomaly in a sense, because I think a lot of people think that 00:12:50.780 |
the city should continue to grow and progress and build housing and so on. 00:12:56.440 |
But I think the quality of life has degraded for some time in the city as infrastructure 00:13:00.620 |
hasn't kept up with the changing pace of companies growing here. 00:13:06.060 |
And as a result, we've kind of got this ballooning, inflating budget that's been poorly managed. 00:13:11.140 |
You've got, I forgot the statistic, but there's some number of thousand people 00:13:16.660 |
plus that are city government employees in San Francisco earning over $300,000 a year. 00:13:20.880 |
And so there's a chronic kind of bureaucratic issue that is the cancer that has caused a 00:13:29.500 |
lot of the follow on crises that I think we're now experiencing acutely here in the city. 00:13:33.920 |
Now, in terms of leaving to your earlier question, I was really like, I've just been like everyone, 00:13:41.560 |
like I kind of talk about the Dante Inferno layers. 00:13:46.500 |
For me growing up, it's like a seven layer burrito. 00:13:50.820 |
Start with the beans and in the middle, you got the sour cream. 00:13:54.200 |
And, you know, this city has just gotten kind of... 00:13:58.100 |
And the state has gotten more and more difficult to live in. 00:14:00.120 |
And I was certainly thinking and talking to my wife, like we got to leave. 00:14:05.120 |
But then I did a call last week that I think 18 of us were on with Governor Newsom. 00:14:10.180 |
And, you know, he made a couple of really interesting points that really did honestly reset my perspective. 00:14:16.340 |
You know, I've tried to take a step back and think a little bit more broadly about the long term opportunity in California. 00:14:21.260 |
The way the state operates right now, it's the fifth largest economy in the world. 00:14:29.720 |
They've done a great job kind of managing kind of the fiscal gap that's being created by the COVID crisis. 00:14:34.680 |
And, you know, Governor Newsom made a point like we have had the California exodus story that's percolated and cycled really for decades. 00:14:43.940 |
He pointed out an article, which I've not been... 00:14:46.180 |
I've not been able to find, but I've been looking for it from Time magazine from 1959 that were like declared. 00:14:51.160 |
This is the year everyone's going to exodus out of the state. 00:14:55.560 |
There's some crisis that precipitates the mass exodus. 00:14:58.040 |
And it hasn't happened because it is a great place to work as a diversified industrial base. 00:15:03.760 |
Tech is a lot of the growth, but there's a lot of industry here. 00:15:06.700 |
Largest ag producer, largest, large military aerospace industry and on and on and on. 00:15:22.320 |
And I don't think any of us want to give that up. 00:15:24.780 |
And and the media has done a great job kind of magnifying these small stories that aren't really a story. 00:15:34.120 |
Governor Newsom made the case that this wealth tax proposal, you know, was one assembly member. 00:15:40.460 |
It wasn't even really being considered, but it kind of created this press flourish and everyone got involved. 00:15:45.860 |
And I know it kind of freaked out about it and it became this kind of another catalyzing event, but it wasn't really real. 00:15:51.160 |
So if we kind of broaden our perspective a little bit, both in terms of space and time, I think we get a little more kind of comfortable with like of all the places to live and all the places to work. 00:16:00.560 |
And you can go save some taxes and move to Austin. 00:16:03.240 |
But I mean, then you got to go live in Austin, you know, whatever. 00:16:07.880 |
You're right that it's the best in terms of climate, geography, natural beauty resources. 00:16:15.700 |
And the industries that have developed here and have strong network effects. 00:16:24.760 |
And it seems like the politicians are doing everything they can to mess it up. 00:16:28.420 |
I mean, I almost wonder if there's like a resource curse issue, particularly with San Francisco, where, you know, there's this thing and and I mean, this observable thing with governments that that sometimes you get a resource curse where if there's like a lot of oil in the country or something, you end up with with a government that's not very good. 00:30:41.540 |
Well, I would just disagree slightly in the sense that just because this has big distributional 00:30:49.420 |
consequences like basically who makes the surplus doesn't mean it also doesn't have 00:30:57.300 |
And whenever you prohibit people from engaging in the type of economic contracts relationship 00:31:02.860 |
that they want to engage in, you're reducing surplus. 00:40:43.500 |
And I think better oversight over the use of force. 00:40:48.320 |
The body cam idea, Jason, I've seen you tweet about. 00:40:55.680 |
The body cam idea I had was I asked, does anybody know, and does Black Lives Matter 00:40:59.680 |
or another organization track which police departments-- because we could get a list 00:41:04.160 |
of every police department that exists in some database somewhere. 00:41:07.280 |
Do we actually know what percentage actually have body cams and what model they use and 00:41:13.240 |
And one of the things that I think has happened this year is the live streaming and the live 00:41:19.420 |
video and the number of smartphones out there has resulted in us being able to see what 00:41:24.680 |
black and brown people have been telling us for decades, which is they're murdered by 00:41:30.660 |
And when you see George Floyd get murdered, it's fairly obvious that that's what happened. 00:41:35.540 |
Or they have the video of Breonna Taylor getting murdered. 00:41:41.120 |
So I was thinking we should just start with that as a base. 00:41:43.060 |
But I think that's a basic, which is every single cop car should have a 360-degree camera 00:41:48.300 |
And I don't exactly know how federal mandates work, Sax. 00:41:51.160 |
But don't you think there should be a federal mandate for just cameras and car cameras? 00:41:59.660 |
I mean, maybe not recording the police officers when they're sitting in their car. 00:42:08.340 |
Sort of like Fourth Amendment type search and seizure type situation. 00:42:12.880 |
I think it would make sense to have that on video. 00:42:16.920 |
I mean, you got to think every police will behave better. 00:42:23.400 |
A young guy, I think he was 19 years old, was shot in DC named Dion K. I don't know 00:42:28.880 |
if any of you guys watched the body cam footage. 00:42:36.320 |
But in the body cam footage, you can see that he pulls out this gun and throws it. 00:42:40.600 |
And when he pulls out the gun and flings his hand around, he's got the gun in his hand. 00:42:45.060 |
And so there was about 100 protesters that showed up, but it's largely become a non-story 00:42:49.640 |
as a result of the facts associated with the body cam footage. 00:42:52.980 |
But I just want to propose something else that's a little bit more radical. 00:42:56.420 |
Maybe my libertarian ideals kind of cross with my socialist ideals and forming this 00:43:15.020 |
Everything you're talking about is layers and layers of bureaucracy and ideas and shit 00:43:20.000 |
But there is kind of one common, you know, butterfly effect, butterflies at the source 00:43:24.000 |
of all of-- a lot of what we're talking about, which is guns. 00:43:27.660 |
If there weren't any guns in the United States, I would not feel threatened as a police officer. 00:43:32.820 |
I would never have any reason to feel threatened and I would never have any reason to pull 00:43:37.040 |
The reason I always make to pull a gun as a police officer is my life is threatened. 00:43:45.120 |
And that's the case in like the UK, for example, where there are like no police officer shootings 00:43:49.320 |
of civilians because they're never under threat of being killed by a gun. 00:43:54.480 |
So there's a simple answer, which is get rid of the guns. 00:43:57.040 |
But you know, a little too controversial and obviously many layers to that argument, especially 00:44:06.500 |
But I would say, you know, much of what's going to go on now and in the future is just 00:44:12.160 |
It's going to be building more layers of complexity. 00:44:14.940 |
It's more kind of associated complexity to try and resolve the underlying problem of 00:44:19.440 |
all of this, which is that we've got guns on the streets. 00:44:23.320 |
And therefore, you know, there's always this threat against every individual that their 00:44:31.340 |
There's not going to be any new gun control legislation for a generation because of the 00:44:41.320 |
I mean, every single gun sale is going to be at an all time high. 00:44:43.980 |
And there are more first time gun buyers in the United States in the last several months 00:44:51.360 |
I mean, the ranks of the NRA must just be swelling right now. 00:44:56.680 |
And so this idea that you're going to get gun reform, I don't think it's going to happen. 00:45:03.260 |
And you know, I think, you know, you use the word, I think, idealistic. 00:45:08.140 |
I mean, I think it's like a little bit naive to assume that gun sales are going to be at 00:45:12.800 |
I mean, it's not like it's going to be a big deal. 00:45:14.800 |
I think, you know, I think it's going to be a big deal, but I think that's the thing. 00:45:17.800 |
You've got to be able to assume that you're going to be able to get rid of all the guns 00:45:19.800 |
There are a lot of people in this country who feel the need to have a gun to protect 00:45:21.800 |
And, you know, the cops can't always get there quickly enough. 00:45:26.140 |
And a lot of people feel the need to have that for self defense. 00:45:28.800 |
I also think the minimum amount of training for a police officer should not be six months. 00:45:32.680 |
I think they have to re I mean, if we really want to have the society move forward and, 00:45:38.700 |
you know, to solve our issue of race, which is, you know, like the original setting of 00:45:42.940 |
America, we're going to really need to start thinking about making, you know, police go 00:45:47.840 |
back to school for 18 months, 12 months and rethink how we how we address the situation, 00:45:52.840 |
because it's just tragically unfair that one group of people's children has to worry when 00:45:58.540 |
they're driving in a car and, you know, other people on this call don't have to worry. 00:46:06.780 |
Let's take a hard shift to the economy and then we'll go into the election. 00:46:14.520 |
You've been talking a little bit about the economy and the stock market ripping again, 00:46:20.400 |
But we did have like a massive rip with Tesla and Tesla and Apple, I guess, doing a stock 00:46:28.180 |
Why are we hitting all time records, Chamath? 00:46:32.320 |
We have the most important thing that's happened, I think, in economics in the last 10 years. 00:46:36.980 |
The Federal Reserve, Jerome Powell gave this landmark speech and he basically said we are 00:46:41.220 |
going to keep rates at zero for the next half decade. 00:46:48.540 |
I mean, quite honestly, it could be a decade, but they're going to let inflation run before 00:46:56.340 |
There's no path to any near term inflation of any kind whatsoever. 00:47:02.140 |
So Jason, my honest perspective is you're basically going to get paid to be long equities 00:47:10.560 |
because your risk free rate is zero and will soon be negative. 00:47:16.040 |
And what are you supposed to do if you're an asset manager? 00:47:18.520 |
What are you supposed to do if you take California back to using California? 00:47:22.840 |
Let's just say you're CalPERS, you're the California pension system, and you have hundreds 00:47:32.140 |
So you're going to have to be a long equities.