China's AI Threat, SpaceX's Plunge, and Trump's Truth Social Grift

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They know homes. Higher the right pro today. Megan Rupino here, this week on Attouch More, the beautiful game I am talking with US Women's National Team and Denver Summit Captain Lindsey Heaps, about her journey from Denver, Colorado, over to Leon, France, and now back to Denver, and her hopes for the 2027, as the US Women's National Team captain, I'm also weighing in on the biggest moments and controversies from the World Cup order finals. Check out the latest episode of Attouch More, the beautiful game, where we get podcasts, and on YouTube.

“I think Elon Musk will be remembered as arguably the greatest engineer in a sector, but that sector is not space or EVs.”

That sector is the financial markets. Hi everyone, this is Pivot from New York Magazine, and the box media podcast network. I'm Karis Swisher. And I'm Scott Galloway. Scott, how was it?

The game. It started off slow, first half was kind of a sleeper, and then the second half was great, and so yeah, it was great to be there. I took my boys. What was the vibe of the place?

You know the Argentinian fans are incredible, and the Spanish fans are hot, so generally speaking, you know, check, check, check, and not live did a good job.

I will say this, I thought FIFA put on an incredible tournament in terms of touch points and graphics and vibe. It was, you know, typically the final is not the best game. What was unusual about the Cup, the tournament at Qatar was the final was the best game. It's like the Super Bowl usually isn't a very good game, and this wasn't, this was an okay game, not a great game, but it sort of like, quite frankly, I'm exhausted, the World Cup, the tournament itself was incredible, but I'm kind of glad for it to be over.

The thing in the middle was a little bit jumbled, it was sort of like, I didn't think it worked.

“I was like, we're a bad bunny, like, we're always thinking what was the comprehensiveity of it?”

I mean, when they like yell out, Shakira and Elmo in the same breath, you're sort of like, what's going on here? It just felt like a dog's breakfast, and I just, those things are hard to pull off, you gotta, you gotta try and please everybody and, you know, have somebody set the charts, but it's also ethnically ambiguous, and then it's just, that's a difficult one. But just to put some numbers around it, I think the business story and I've said this for a while, it's going to come out, you're just going to see over and over.

They're an advertiser, but they're going to be, they're going to get good or bad, they're going to get a ton of awareness. The World Cup will be the largest gambling event in history.

Yeah, 5.6 billion. Yeah, and Cal Street did more get this than 31 billion in trading volume in June.

That's up 87% from May, and the platform is declared 1 billion in daily volume every day since the tournament began June 11th. And they say, just the World Cup 5, I am 23 billion, Pauli Market, said in all time, monthly record of 10.8, I mean, and just one game USA versus Belgium, Drew, 64 million on Cal Street. And what's interesting here is that when you have this much money wagered on matches, they're no longer, it's not a very gambling story, it's a capital market story. And Cal Street's at a 3 million users during the World Cup.

And it feels like prediction markets are kind of becoming the Bloomberg terminal for the-- Yeah, but, well, is that a good thing? Or just, it is thing, I get it, it is thing, but is it a good thing? I generally think that way during on sports is something that young men need to be educated about. I don't know if you can stop it, I don't know if you can ask someone to go fight for the country and then not wager on the Browns game.

And there's just no getting around it if you look at the data.

It's a bit on anything, right? Once they get started, like they were betting on drug outcomes, it starts to get a little-- Well, there's just the pure addiction element, and the fact that when it's state legalized as gambling, bankruptcy is tend to skyrocket. Yeah, and then there's the potential for insider trading. I actually think that'll get arbitraged out when people realize if they don't have insight and information, they should not bet. We'll get to that, because Trump-- I mean, I have to say White House teleprompter operator is being investigated over allegations that he used inside knowledge of the president's speeches.

He used to earn over 100k on calcium. And then Trump media is going to sell Wall Street traders investment firms as much as 100,000 dollars a month for faster access to his posts on Trump's social, where he talks about what he's going to do, and then he bets against. It's all like, it's both insider trading, it's insiderness, it's gaming the system, and then it's possible addiction.

“So, I mean, I think betting can be fun, it's just this seems like on Turbo, and especially when the president himself and his minions are all doing it.”

Well, there's-- I mean, a couple of things. So just to wrap up, one of the more-- I think one of the most interesting things that's not covered about these prediction markets is that we used to discover information through traditional media and journalists. Sure. Now we discover through markets, and when enough people have money on an outcome, markets often become the fastest aggregator of truth. I use data from prediction markets more than I use data from traditional news outlets now. Whenever it's about politics or predicting anything, this tends to be the data source I go to.

So there's this weird, neither good nor bad. It really is the wisdom of crowds has been monetized and is not being leveraged for data input for media companies such as ourself. The insider trading thing, like, so people on both sides of the aisle engage in insider trading. Trump came in and said, "You guys are diameters, I'm going to make millions, not thousands, maybe even hundreds of millions."

And then just a brazeness of saying, "This is tantamount to." So Republicans will always say,

"It's accurate, it's beaker Pelosi up 600 percent in the past 10 years, the S&P up 200 percent." And they clearly shed access to non-to-material non-public information. But she didn't start a wire service selling her insight from me.

“Yeah, right. I mean, it's like under Biden amplified, right?”

It's like under Biden selling crack on the White House lawn. It's like being that brazen. And by the way, he hands down has the best social in the world right now. Very, very, very authentic, talking about addiction. Anyways, I just can, it goes, it goes back to the basic notion.

If you can get a commit a crime, don't get a speeding ticket. Don't have an isolated incident.

Yeah, just commit double murder and rob banks every fucking hour. Yeah, I know. And then everyone just doesn't know where to look. Honestly, everyone's looking for an edge. It's a different category story. It's like, are you crazy? Or are you nuts? I love it. The all the little ones get caught.

And then Trump doesn't plain sight into steals and steals. He's just just that thief. Speaking of which, he tried to steal the attention from the team. What was that wandering around the stage? Did he got food, right? Correct or not? He got, he got food on the way out. And he did get food on the way out. But he got food on the way in. You could hear him.

Sorry, excuse me, you're right. On the way in. But it was Claudia Shambam. It was Prime Minister Carney or President Shambam. You know, they were there all there. It makes sense that they were all there. It wasn't as bad as I thought. I was going to be, I mean, no one likes to get food. I don't, but I'm trying to remember it past Super Bowl's.

Our presidents usually applaud it. I haven't been to that many events with presidents. They don't get food like that. He gets food everywhere he goes. But why was he on the stage? Could you, could you even tell from where you were sitting? He wouldn't get off the stage. And then that that in Fintina, his, his, his little guy who gets him awards chased him across the stage to try to get him to move.

Because you know, you're supposed to do this thing where you push the... I don't think, I don't think that was him at Tension Monitoring. I think that was him

“daughtering. I don't know. I just, I don't know if you could tell, but that's what was happening.”

It was weird. It was weird. Of course he just said, I think he was daughtering. That's what I felt everyone's like, oh he's taking attention. I'm like, I don't think he knows where to go. Like, because the guy ran after him, like, I often do it. Oh, my mom was getting more of it. But Johnny, in Fintina, look, Fife has a terrible reputation. And it's, and it's earned every ounce of that terrible

Netherlands, whether it's the ILC, even the NCAA, I think is, is not draped itself in glory. Because they, they have just a total lack of regulation. They have immense power. They have cartel power that monopoly power. These stadiums weren't even allowed to say, I'm a jealous stadium or met life. They had to cover it up such that Fife would have told Monopoly power on all monodidic bad revenue. Interesting. Yeah, it definitely feels as if I'm a capitalist.

I don't think there's any better way to leverage the most powerful instinct than a self-preservation

and capitalism than I do think it's it's just proven over and over that creates a growth in need

“for social services. But it does feel like it's just gone too far. Yeah. Yeah, I think you've”

had too much world cup. But speaking of gifters, I have to also tell you something that hasn't gone too far. Andrew Tate and his brother Tristan had been arrested in Miami after British authorities issues 38 new charges against them, including allegations of rape and trafficking. These guys, I mean, there was obviously a big meme about his outfit, which was very strange and was the strange sort of, you know, lady outfit. It was on outfit. But I'm very happy

they were arrested for anyone who wants to read about them. You will understand that these people

need to be thrown into jail and never let out again. I'm so happy. I hope Trump doesn't

try to stop them from being extradited to England, which is where these latest, they were, of course, jailed in Romania. I think he'll do that. I didn't even thought of that. Yeah, Trump could. He did

“that's how how anything they got back here from Romania. Trump put the, put the pressure on Romania”

to let him out. God, I agree with all the shitties under with, with abstine. That's a last thing. This is, you know, I mean, I got this right. This is abstine in real time. This is abstine in real time. Like, at, with the government letting these people off all the time. That's how they got back here. That's where the reporting main in our lady outfits. But, but these two are rapists and sex traffickers and they, and, and child monsters. I just, this is just the fact that the Trumps are

so tight in them with them, JD Man's follows them. There's, it's not. There's one, there's Manisfier's one thing. These two are, are predators and should be thrown into jail. And I'm glad Britain came after them. Yeah, I agree. And I don't, I know it's 38 new counts. I'm glad that the justice system is taking over here. But the good news, in the lens, I look at this through, you, you know, two certain extent is that young men have moved on from the tastes. They're no longer a thing.

“The media has not, and I think it's good that they maintain coverage and that they're brought”

to justice for what would feel like just so many allegations that they're going to spend, you know, it's probably a pretty safe prediction that they may spend a decent part of the rest of their life in jail. The crown prosecution service is added. New charges, rape, human trafficking, and decent images of child. Yeah, it's their thing. This is there. And it brings their, it bring Andrew Tate's total charges to 42. They found additional alleged victims in bed for sure and

hurt for sure bringing the total number of accusers in the UK case to seven. Both of them had dual USUK citizenship. And I'm now waiting, um, extradition. The thing that doesn't get a lot of attention, and I think might be the reason they end up in jail is people don't talk a lot about, the actual business model. And that is Andrew Tate didn't get famous from kickboxing or big brother. He may have gotten famous doing that, but he got rich teaching men to get rich, teaching men to get

rich. Right. Basically, hustler's university and he had this bogus subscription remind me of a Trump university. This bogus subscription education platform. And at one point, they think he had 100,000 people, almost all men, roughly a $50 a month at its peak. So $5 million a month in recurring revenue from basically an affiliate market, pyramid scheme, where the product was mostly more affiliate marketers.

And, and the pitch was never subtle. Dominance submission. And this thing called the matrix as a

world view, where women are property and violence against them is a lifestyle brand. They've really set young men the, the, the few. And I want to give more young men more credit than just believing everyone was a Tate fan. But the scary thing about that part of the Manus fear, and what was so medacious about it, is it would start off OK, be fit, be action oriented, take control of your economic life. And then it just became about dominance and misogyny and crime. Yeah, right,

really. Let's just like, like, just call it what it is. I mean, they, they like sell rape as a product. I just, I think that they, they, they, they, they should go to jail and stay there. And I would agree that like all kinds of young men have rejected that my sons years ago had rejected them,

And I was sort of disturbed by that. So I had been very aware of his messaging. And I had rejected it.

That said, he had enough followers to be able to party on and among the followers apparently are barren Trump and others. And it just, you know, in this case, and I'm playing there and Trump, this is grotesque, but it's very attractive in some way. And they are essentially rapists and sex traffickers. And I now pedophiles and the Trump administration better remove itself for many

“because it is. It's Epstein in real time. These guys at the end of the day, I believe they're going”

to be found guilty of a lot of different crimes and spent a lot of time in jail. The thing I find most interesting is that how were obvious grifters like this and such violent people able to get so much traction and get so much influence on a percent care. They're very close to the Trump people. And I go back to what Peter Drucker says that every business success can be reverse engineer into a change in demographics. And so what's the demographic here? What's the market that opened

up? And I believe that it's millions, it's a cohort that unfortunately has exploded. And that is a cohort of loneliness and downward mobility, young men, and they created demand. And guys like tastes applied at random. It must be girls thought. Raptive Bugatti's and grievance. This isn't your fault. And the thing that he has kind of in common with Trump was the persecution or grievance complex that they leverage. His the tape rather standard response to every legal action across

countries that accuse them of crimes has been the same script. This is a conspiracy against me because I speak the truth. Right. Exactly. And does that remind you of anybody? Right. So they take a specific evidence-based allegation and they reframe it as an attack on the truth or on an idea. And it's effective because it's flattering to the audience that if you believe him, you're not defending an accused rapist. You're defending free speech and a movement.

So I find, like, how did this happen to me? Will be written about in, you know, sociology books. I agree. I agree. Let me tell you there's a story which I mentioned a couple weeks ago in June

“called Andrew Tate's Empire of Abuse by Heidi Blake from the New Yorker. You need to read it.”

It is just, she in, it's an incredible indictment on a lot of people that facilitated it,

but it, it'll give you a primer into why these people belong in jail and should stay there for the rest of their lives. And I'm glad. And I'm glad they got arrested in such an embarrassing way to, you know, the, when they're weird little outfits. And by the way, the silver lining here is Scott Galloway has his Halloween outfit. Yeah, I am. And everybody was talking about it. Oh my god. They're just, except they're rapists. God, you could do better. Well, I'll take the gay prostitute,

like, yeah, gay prostitute. Although no gay would dress like that. Sorry. They're, no gay. It's like a, like a, a mid-western lady, paralegal. Anyway, um, okay. Yeah, that's a, that's a, that's a quick break. When come back, uh, SpaceX stock has taken a dive. Support for the show comes from Vanta. Every new tool your team

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“I am not an AI catastrophist, I'm an AI optimist, I think it's going to create more jobs”

and it destroys and I think our job as professionals is to figure out how to leverage these tools. AI, more than almost anything I do in terms of what I could point to for real, economic leverage and savings, is 100% in the legal fields. Harvey is the AI designed specifically for legal work, trusted by leading law firms and enterprise legal teams. All right, so now I'm looking at their demo. It plugs into tools that lawyers already work with, lexis nexus,

Microsoft, and this is a key and I do this internally with my LLMs. With permissions, it lets you look at the firm's own files and databases. So here it's answering a question, reads the complaint, pulls the relevant terms, checks the web, weighs the evidence, and traps the response, but it also can do this in a shared workspace between the firm and the client. So they both have visibility into the work thing done and can both have value to it.

“I think this space is clearly hand in glove for AI, right? So there's no doubt about it,”

this I think is going to be super helpful, not only for law firms themselves, but internally for general counsels and companies. Harvey is AI tailored for law. You can learn more at Harvey.ai. Scott, we're back. This is an interesting story. Ed is all over this, man. I've been following Ed. He loves this story. SpaceX stock is no longer blasting off. Let's use a rocket term. Shares of the company are down almost 23% white be at almost a trillion dollars in market value.

One could say that it was overvalued and it's not really wiping it out. It's just coming down to where it belongs. As we tape the market cap for the company is 1.63 trillion and going down, the short squeeze is quite heavy on here. Let's just know what you said about the stock in early June. I think SpaceX is about to hit a 10-year high on the minute it goes public, meaning it'll

“be all downhill from there. Yeah, I think you got this. And to talk about what's happening here”

in the short squeeze with what's occurring, most of the float, which is very small at this moment, is devoted to short sellers. So explain the situation. I think Elon Musk will be remembered as arguably the greatest engineer in a sector, but that sector is not space or EVs. That sector is the financial markets. He is engineered in concert with Goldman and JP Morgan. I mean, if creating demand, whether it's just this will be a good trade or it's Elon,

Elon always gets his investors back or look at all these pictures of rockets, look at all this

flowery, we work like language about the world being an interstellar species or an interplanetary species, constraint supply and an unprecedented evaluation. Just not we've never seen anything like this. Yeah. Call the president or call whoever get included in the Nasdaq 100 get demand that no IPO has ever been fortunate enough to register. Now, everyone talks about, okay, they've lost a trillion dollars in market value, but it's still worth 1.6 trillion. This isn't, this is 35 dollars stock.

Yeah, it's not a broken company. It's a reminder that gravity eventually applies to stocks too. And this is, this is what IPO has had become. In that is, there are no longer an opportunity for retail investors to participate in America's greatest companies. They don't create value. They know like or create value, you care at they transfer value from optimistic public investors to early private investors, because if someone who's on or been on the board of a lot of private companies,

there's so much capital available in the private markets that if the people who really know the company in the sector well, think, you know what, there's still a lot of growth in value here. They keep it off in themselves and they find their own capital and they invest and they don't need

to access the public. If you wanted to raise a couple hundred million bucks, like Google did back

when they went public in the 90s, you had to go public. VCs and institutional investors didn't have that kind of capital. Now, the only basically have said this for a while, the IPOs have now become the last stop on the Trump train. And that is, okay, we don't think there's upside any more here. Basically, it's like showing up to an IPO right now, it's like showing up to a poker game after

thing. If you don't know who the dumbest person in the room is, it's you. Now, having said that,

if you can get in on shares at the pricing, like from your investment bank or your social investor or whatever it is, these guys engineer a one-day pop. If we had a real, a real SEC chair

“coming in, I think a really solid review of the IPO process of this company. Or even tokenization,”

even let's throw a bone at the crypto guys. Maybe they should tokenize private companies, put it on the blockchain and create a level of transparency and disclosure using AI that more people can participate in these companies pre-IPO, but the IPO process itself. It's now a transfer well, yes. Well, and now like that, it kind of defines the term rig. Explain what the short sellers are doing here and why this float is so they kept the float tight in order to create the pop, correct? Well,

as a percentage, so first off, okay, the wave of the roll was included in the NSF 100. They also waved another roll. Typically, when a company goes public, it has to float a certain amount of the

company. With this, although they raise $80 billion on a $2 trillion market cap company, that means

only 4% of the firm's shares were available. Right. And they have all sorts of staggered lock-ups, they have effectively soft lock-ups that if you buy through certain platforms, you get banned from the platform, if you sell. If you sell, sell the stock, which is they don't want to call it a lock-up, because that would violate certain SEC conditions and create a different class of stocks that they created aware, or work around that's effectively a lock-up. But people basically, this is one of the

most shorted stocks in history now, because people are betting it's going to go down. And what people do is they borrow stock and sell, sell it back to you at the same price for a fee, and they're hoping that it'll go down, and they have to get to sell it back to you at the price when they initially shorted the stock. It's dangerous because any move-up creates a short squeeze, and it can create velocity on the way up. Which Elon has battled the forward Tesla and other things. He and

George Sellers have been on a lifelong flight over the valuations of his companies. Yeah, this is a company that is, and every time I say this about Muscomerong and to be fair, Muscus delivered in spades for his investors, that people who invested in Twitter, it's like they must have thought I'll write this thing off, and he's figured out a way to stuff it into SpaceX and

“talk about rockets, and those people now have a chance to get their money on it. But here's the thing,”

I believe they're going to get their money out, and there's going to be an enormous number of investors who've made a lot of money to be fair, a lot of private investors, and it will create some economic growth. I got a friend of mine for one of the investment banks said that there are 12 new billionaires just in Texas. You know, the IPO market and capital formation in the U.S. in SpaceX is part of this is a marvel. Except they way not be stay billionaires, right?

Elon's no longer a trillionaires now at this point. Okay, but still the amount of well created here. I get it, but it's on the backs of dupes, right? Someone's going to be at the short end of the stick, and that's going to be okay. It to be fair. I don't think we're out there telling people, it's overvalued. Goldman Sachs and Morgan Stanley putting a price trading on it at 205 and 300. That is an exercise and creative writing. And I wonder if we're headed back to again, 99,

remember when people were saying analysts were saying, putting out buy recommendations and then in private emails saying, this is a piece of shit. There's just no fucking way. I don't care who that Morgan Stanley analyst is. I guess he or she is a very bright person and an exchange for the feast or underwriting this company and exchange for the opportunity to manage the wealth of the shareholders post the IPA, which is actually a bigger business for these investment banks,

the people don't talk about. There's a general on this on the analyst, not to say this thing's

“overvalued. It's worth 40 bucks to share. That gives back. Right. And Sarban socks, I think was supposed”

to cure that and it has not. The only difference is it used to be, if you had a certain type of company,

the analyst writing it up was the most important thing and the analyst used to show up to pitch

the IPO. And they're no longer allowed to do that. They're supposedly not talking to each other, but there's no fucking way. Anyone with half a brain would put a $300 price target on this thing. What would you do here? What is the investor? Yeah, just sit quietly. If you're in a, do you mean a shareholder or just a shareholder now? Is it going down? Are you kidding? Yeah. The, the, the, love it is way, the way I look at it is I

just look at the asymmetry of potential upsides and the underlying valuation. The asymmetry here is is very dramatic that if this stock was at seven, it's much more likely what is it now 140 or something out of it? Yeah. It's much more likely this stock's at 70 than 280. So you have asymmetry to the

or whatever, but also if you're a private market investor, you might be up 10 or 20x on this, which again, credit SpaceX, credit Elon, credit the markets for creating that. Oh my gosh. I've had calls. I haven't had a call from anyone at SpaceX. I've had a call from employees that open AI and anthropic that are being pitched to by their shares in the secondary market. And I would say the same fucking thing, sell at least 50% and hope and call me, I hope I'm wrong.

Lock in most are all of those. Lock it in. All right, but speaking of which, and that topic China is, once again, sticking its claim in the AI race, this is a really interesting story. Something we've talked about a lot. Chinese startup moonshot AI just unveiled a new open source model called Kimmy K3, which the company says can match top models from open AI and anthropic.

An important benchmark, moonshot is priced to model at $15 per million output tokens that's cheaper

than anthropics Fable 5, which costs $50 for the same level of output AI and semiconductor shocks dropped on this new similar to what we saw with deep seek last year's Scott. This is before we discuss this, I'm going to play a prediction you made last December about China

“AI and Trump. Let's listen. I think China's about to go for the jugular here and I think that they're”

going to massively engage and what I refer to as AI dumping. And that is these open, open weight models including QM3 Max. These models are just much cheaper, lower power consumption and everyone from Airbnb to other Fortune 500 firms are starting to recognize that these things are lower cost. And I think essentially China's going to say, okay, the fastest way to kick this guy in the nuts is that he's made a giant bet on AI, including the S&P and his entire economy on AI, and we're just

going to start dumping AI into the US market. So great prediction. I want to talk about how concern your US companies. They're, of course, calling it AI communism. One of them, one of the top people about what China's doing essentially planned AI. They're giving you a way for free everybody and benefiting society. There's nothing more capitalists than trying to consolidate them what they're doing here. So Trump's former AI's or David Sacks called this a new model concerning

an argued US is setting itself back with regulation saying, this is how you lose the AI race. There is no regulation, David. So I don't know what you're thinking about the data center more trying to do it. However, it doesn't matter. This is not why this is not the problem, David.

The problem is these costs. So Scott, go for it. Because you really did, this is stayed with me

“when you started talking about it last year. I remember thinking he's dead right about what China's”

going to do here in your right. It's not AI communism. It's AI capitalism. It's what's happening. This, Cara, this is the biggest story that's getting. This is the business business business business story that is getting the least coverage. And that is, everyone thought the AI race would be one by the company with the smartest model. And increasingly, it's looking like it'll be one by whoever can drive margins to zero the fastest. China, China isn't going to beat

open AI in a frontier model, a premium AI. That's not what they're trying to do here. They're trying to make premium AI economically irrelevant. And that is exactly correct. Moonshot pricing AI at roughly 70% below comparable frontier models. It's not competition. It's dumb. Yeah, used to the word, exactly. It's AI dumb. And this is what China has done. This is just like, for God's sake, if we had a secretary of commerce who didn't have his head up as us. Yeah. God for God's sake,

just spend an hour with Jean Rieimundo up for God's sake. I just did. Get, get Justin Wolfers in there and say, and just listen to the people. They'll tell you, what is going on and what you can do about it. Yeah. This is what China did to solar panels. Steel, EVs, and batteries. First, they match Western

quality or they don't even match it. 80 90 percent. Plus, actually match it with cars. They've matched

it. But go ahead. Then they cut the price by two thirds. Then they own the market. Investors should

“stop asking who has the best model. The, the, the, the salient key question is the following. Who still has”

pricing power in 24 months? Yes. So what do the, so Trump will, we'll try to keep them out of here. The way they deal with EVs, but just a matter because across the globe, China will own the markets everywhere, like they do with EVs. But that is, if you go anywhere except the United States, their EVs are everywhere, everywhere. So what happens here? What? Because they're going to try to keep, they'll keep it out of this, this, this is what these, these companies are freaking. And they

because they're communists. So what, what, what, what does the Trump administration do since,

as you noted, they're banking, as you completely presently notice, they're banking on this.

“They've stake their entire market upon this. I think that's exactly what you said. His entire”

common year in AI, and we're going to start dumping AI onto the U.S. market. So what is, what did the Trump administration do, especially, because they're in there, especially after the midterons, they don't have a lot of moves to make here. When you make unilateral non-market decisions that are, are caked in bad judgment, you end up in a quagmar, you end up in a corner when they're no good options like the wrong. Whether it says that that's exactly right, whether it's going

into a run without consulting Congress, your allies having a plan around the state of Formos, you end up with no, no good options by deciding to no regulation, making a huge bet on AI infrastructure or making an enormous, but the market has just gone so crazy, so concentrated around small number of companies. And what you have here is he's going to be in a real quagmar, because you think, well, okay, he's just going to regulate it and tell these companies they can't use, tell American

companies they can't use, Chinese models. But the most frightening graph for the American economy, the global economy is one of those mountain graphs. And it shows it in the last 90 days, token usage of Chinese models is gone from like single digits to 53%. The majority of AI consumption now in the US appears to be coming from Chinese openweight models. And here's the problem, whether it's David Sachs or whoever it is that has an enormous investment, or just the economy

has an enormous investment and is dependent upon the growth of open AI and anthropic and Nvidia and all these companies that ship guys, infrastructure guys won't be hit as hard. But the front end models, if they get hit hard, the whole thing could, you know, those dominoes are already

starting to tip, but the problem is every VC and all the other people that he caters to are going

to call them and say, I can't afford to build this new insurance AI company. If you all have a sudden overnight decide, I can't use Chinese opening AI models. So he's he's surrounded by a lot of donors who are making a lot of money, arbing the arbing down the application layer to a cheaper LLM layer. And then there's the cyber security exposure. I mean, it just goes on. And he doesn't surround himself. He surrounds himself with people who want to make money in the short term, but don't

think about the long term ecosystem here. So this is, this is, I call this, okay, two things, AI don't think, and next Quagmar. He's going to be in a box there. He's going to be in a corner here. He doesn't even know. He's just even know. I don't think he understands the idea. I don't think he cares. I don't think he cares. I don't think he's honest way out. And he's trying to grab from whatever he can, you know, like, remember those things where they gave you a card and you ran around a

“supermarket. You had 10 minutes to take everything. That's what it feels like. Like he's running around.”

I'm not going to cut nothing. I can run around. I forgot. I remember the sketch of the meat. This is, uh, so I was a macro, micro economics graduate fellow in business school. This is literally going to be the most exciting, fun period to look at just how people, it's like smooth Holly all over. We used to just talk about how stupid tariffs were. And there was different historic events. The oil shock of the 70s, where we talked about how, how stupid they were in the 20s during the great

depression. How could they do it? How could they do it? How could they do it? This, this era is just replete with head up your has decisions that illuminate economics and markets. And then they blame like some housewife in Utah. It doesn't want a data center. I think you're absolutely right. The focus on data centers is probably too much, but at the same time it's not enough because the ones that they stick right in front of people are right in the midst of people. They couldn't have done it well.

They had to like do it in the most aggressive really toned up tone def way. I've been talking to a lot of people who are building these things. And they're like, we can show that we make money from it. I'm like, oh my god, they hate you. Like you really have lost the narrative here so badly

“that you need to recalibrate what you're doing. I never, I never, you know, Mr. Chance to”

intellectually virtually, I think, I think being a critical thinker means that on a regular basis,

if you do what we do, you inflame the people who think they like know you and trust you and like you. And you say something because you think it's the truth and knowing that people are going to get angry. I do this like every couple weeks. I say something that people think are stupid or wrong. And they like let me know via email and social. And that's fine. I think that probably means one, I get it wrong into doing something right. And the latest one, people are inflamed

were not, let me, let me, let me, let me be clear. Whether it's a chicken processing plant and nuclear

power plant or the Ford factory, generally speaking in every economic, economic progress involves just very understandable symbolism. It's like, no, I don't want the chicken processing plant next to me. I don't want three mile island a mile for my house. The, the charge of local government is to weigh the externalities versus the upside and make a thoughtful decision representing their community. And if you just go item by item here, you know, some are very real concerns. I think

that probably the purpose would happen. Probably most significant is the idea that we're straining the grid and send up electricity costs on middle class households such the time all can get richer. That is a very legitimate concern that should be screened for. But what gets missed is that many, if not the majority of these plants will be off grid and powered by natural gas. No, that is perfectly fine. I just think you have an Elon in Memphis, like poisoning

people of color, poor people of color. You've got a Kevin O'Leary in Utah, like accusing people. Poisoning people of color is a pretty charged statement. Why do you say that? Because there's the lawsuits right now. Methane, because he has a methane, there's a lawsuit. This is a, well, there's a lawsuit happening where he opened the thing, where he's releasing

“all levels of methane. And it's causing pollution and poisoning. That's, that's what that's.”

I like it whether, whether it's weather. Listen, it'll be in court. This will, this will have been in court. And I'm just saying, this is what it looks like is that they, they cannot help themselves. Or you have Kevin O'Leary accusing people being Chinese communists in Utah. It could not have been for spokesperson. They couldn't have picked doors. So, or putting them even close, but when people are paying more for electricity, and it looks like, you know,

it looks like local officials are on the take or, or, you know, there's a lot of controversy about the Louisiana plant. But I don't know, you know, that, that should be litigated, essentially. By this is my fear. My fear is that because people are, quite frankly, this is the newest vessel for understandable anger around income inequality, that blue states are going to pass these moratoriums rather than saying, how could we make this so lucrative for the, the citizens of Minnesota

in terms of property taxes and an entity that does, in the short, granted, the long-term, not a lot of jobs in the short run, creates some vocational jobs, and we get property taxes from an entity, a reliable property taxes from an entity that doesn't tax our social services, almost at all. They have closed loop water systems and uses their own energy that's off grid and pays a lot of property taxes and if I were the use guys, I've told you my idea, I would try and get

those payments locked in because I don't think there's many of these things they're going to be built. Right. No, I get that. I think that more terms aren't forever. They are, let's have a figure out

“get this to do this in a right way. But that's, that's what hearings and public hearings in”

our legislative officials are supposed to do with that. A government, a governor weighing in and just doing a blanket moratorium. Right. But a lot of these tech companies are jamming these things through. I mean, that's, this is the issue is that they want to take a minute so they can do things like that. And just, you know, I think it's actually an interesting business because medicine talks to

least computing power from its data centers to anthropic, that could be worth $10 billion.

Dollars over two years, similar to a deal, anthropic just made with SpaceX for computing power, but only a third of the size. You know, meta is, is wants to use this compute. This, these infrastructure computes to get the cloud computing business to offset the costs of AI graphics. You know, there's all manner of things working out here and certainly government should be part of it. I think it's just the manner in which several of the most high profile properties

are going in that creates this hatred essentially. This is techno narcissism and community.

“I don't give a flank fuck about you. I say toned up things. I think that humans require too much”

power. I think there's a genocide against white Africa. This is, there's no, I, oh, and by the way, I, I have a tendency, the people I cohort with have a tendency to go to islands where there's underage

girl. There has never been an easier target right now. Correct. Then the tech brothers and some of

it as well earned. At the same time, a public official's job is to balance it. Here's, here's what I fear. Blue states will feel political pressure to make long speeches and put on moratoriums on data centers. The Republican southern states will say, "Come one, come all." And they're not stupid. They're not going to let them just like soak up all the water. I think they're smarter than that. And what I worry about, Cara, is that while Democrats in blue states will feel righteous,

we won't have as much tax revenue to pay for snap benefits and pay our high school teachers. I get that, but the actual backlash has happened in Tennessee, right? This is the only redest from right now. That's a good point. That's a good point. Is that Colossus? Is that our Colossus? Yeah, yeah.

to data center project in Tennessee than it publicly acknowledged. The pollution is hitting

predominantly black neighborhoods, the hardest. And it rewriters analysis found. Like this is just, this is just like a layup for any reporter. And this potential emissions from the turbine are far beyond the threshold that require federal permit and would release in near predominantly black communities already estimated to be suffering disproportionately high rates of lung disease according to writers. I mean, poisoning. Yeah, and that has a consistent and rough history that

the corporate American tends to go into it. Exactly. And if they had done it in the right way and we're going to help the community, we're going to give it your absolute, but they couldn't help

“themselves. And they, of course, I personally, I think Elon does more damage to these people than”

anything else. Like in terms of the way he behaves. And then you have, you know, the, you know,

the more on Kevin O'Leary coming up to sigh calling people Chinese communists because they object.

Like every single thing that gets built gets subjected to, but the way they handle the objection is, anyway, I would agree. I think you were absolutely right. And I don't think you're wrong. I just think the way they did it in high-profile places creates this. And it is an opportunity. It's just a question of how much an opportunity, how much a state or a local area should get. Anyway, it's a really interesting story, but it's, you're right. You've got this 100% right

along with China. The Chinese don't think to me is one of your greatest calls that was a long time ago. Go on. That's the way I want to start the week. People are going to just use these Chinese models. And there's all manner of cyber issues around that security issues, too. And that that I trust these American companies much, either. All right, let's go on a quick break. We come back.

“Why Netflix latest earnings has investors concerned?”

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unlocks in terms of productivity and utility in my professional life. Scott, we're back Netflix shares just hit a 52 week low after the company's latest earnings report, revenue and income are roughly in line with expectations, but investors were spooked by a third quarter revenue forecast that raises concerns about growth and other red flag engagement. This has been really the talk of lots of people, Ted Serando's hit back at those sophomore

slump viewership dropoff reports saying it's very common in the industry and season two fall

has actually improved this year. Netflix also says subscribers watch 97 billion hours and the first

half of the year up 2% from last year, not 2% is not that great, but the company is cutting back on what we watch reports now releasing data only once a year instead of twice. There's obviously thing about live TV channels, they got podcasts on there, they're doing short form stuff, subscription bundles, they're thinking about which thing never thought they would do. They're looking like TV to me or whatever, they're looking like YouTube is what they're trying to do.

So talk about what's happened here because they were sort of on a high like they could do no wrong and now people are sort of slapping at them pretty hard. I didn't see this coming, it's a big, big story. I thought their stock, I thought the company was going to be well positioned benefit from not spending $118 billion such that they could, you know, have Scott Pelle like get angry or

“maybe they would. I mean, I think they don't. Well, they wouldn't have ever had, they wouldn't have handled”

that way. They wouldn't have gotten CBS. Yeah, I don't hear him out. That was Skydance. You see, I'm saying they're like, there's just no way you could have pulled off the big act with. I think they, they showed real the board and Ted showed real discipline walking away. I don't, I got to a point where's like, okay, we're going to be house poor here. We're going to be trying to figure out ways for 10 years to figure out a way to show return on this. To a certain extent,

they become a, if you look at the earnings call, they become victims of their own success. Wall Street's no longer asking, can they win? They ask, can they keep winning forever? And you, you talked about this 97 billion hours watch and that's unbelievable, but it's up 2%

and people are used to double digigrow from Netflix. And the problem is, it's not a startup anymore.

It's becoming cable with a much better interface. And every media company eventually realizes the same thing. And that is, attention is finite. And the next story growth is adding subscribers. It's owning more hours of your day, but they've made more progress against that than they get credit for. They're going into live sports. They're going to have NFL games. They're actually bidding, which I care about on the 2030 World Cup. I just did that Brian Williams thing that you did.

Yeah. You know, we started talking about when we're going to hang up our cleats and he's like, you know, when the fast ball is no longer going to have to go right. Oh, Brian. You know, he's got to put those horses away wet and tired. Yeah, he's got to say, he's like, well, that's like having a moose and a convertible, you know, I even know what that means, but it sounds very down home. Yeah, he's a very, anyway, it's very enjoyable. Yeah, just a nice handsome guy.

But look, the bottom, this company Netflix is almost Manhattan half. And I like a

“bottoms of valuation. It's trading in its lowest PE in a while. I think the company is this”

a buy here solely because yeah, I literally will two reasons. One, it can it's the operating system for for for non-work hours. And every time, and this happened in Netflix here four years ago, the start was way down. And right now, the fear is the clip economy that we're working with. YouTube. Yeah, YouTube is the fear. We have a new generation of people that don't want to go longer than two or three minutes and that YouTube and that clips on instant reels are going to

begin to soak all the time away. Their ad tier is actually done really well and his response will

for a lot of their new startups, which by the way, I thought was about idea. And the reality is

Ted and his, kind of, what's the coceos name? I don't give him credit. Greg, yeah, coceo of Netflix. The bottom line is every time people talk about this companies that were valued in the stock ads hit, Greg Peters, that it ends up being a buying opportunity. Yeah, I would agree. Although they do have risks from, I worry about some of them being a little jumpy with the podcast with it. Like, and there's sort of trying everything and maybe they may need to be a tiny bit more. Yeah, but they're

very analytical. They are. That's correct. They know stuff. They have, they're using AI and analytics to

media. You don't want to bet against Ted and Greg. I actually, I'm actually looking at the stock for the first time. I told you my Netflix stock story. I bought it at 12. That's a good news. On a risk adjusted basis or split adjusted basis, it's now at 700. The bad news is I sold it three months later at 10 to take a stock loss. I want to find a time machine so I can go back and

time and kill me and then kill myself. Here's what I wouldn't. I wouldn't be doing this.

“Joey, back and doing it. It's fun. It's a question of what what you do. And I think they were smart”

not to get that as you said. And speaking of which we got Eric Gardner from Puck, the other story is, of course, the Paramount Warner Deal and the AGs, which have sort of stopped it and it's tracks for now. But let's listen to Eric Gardner from Puck about what's happening in Paramount because this also slows down a competitor of theirs. Let's hear his summary of that. For the first time Paramounts people are starting to talk about the Supreme Court.

So what's going on there? Well, you have, of course, the Supreme Court could eventually factor. Maybe if an injunction is issued in Paramount appeals it up. I think this Marko gone here. I think it has to do with bargaining positions. I think that the state AGs

know that if they can drag this case on, it will cost the Elecins a lot of money $1.2 billion

if it's delayed a few months. And, you know, so what are Paramounts people doing in response? Well, they're talking about the consequences of pursuing this fight on and on and on. They're talking about how the Supreme Court has conservative justices who might change and that trust standards, who might make it tougher for our future mergers to be blocked. And so they're pointing out the cost of that way as well. In injunction, rolling will come soon

and after that, both sides will assess their options. Maybe against a Roman starting to go shading what a deal could be and so they'll have these kind of future considerations in mind. So, it's interesting. Another interesting media question. I personally would be a Netflix side on this kind of stuff in terms of figuring out how to get back, you know, how to get back and what they're doing. I guess they eventually will solve the problem and then have to deal

with the next problem, which is the debt that they have, which is enormous. So, away from all the other noise about that merger, the debt is the biggest story there. Yeah, I don't. I was against the consolidation here and then I spent some time with two economists that I really respect NYU and Chicago and they both convinced me just in very separate way that this does not even the combined Warner Bros. Discovery doesn't qualify or excuse me, Paramount doesn't

qualify as an monopoly and the industry needs to consolidate and you don't get to pick the political leanings of the consolidator. That's not, that's not reason for blocking a merger. Now, if I were the unions, if I were Sag Aftera in California, I'd be going, "Apes should crazy using whatever leverage I could because I do think these guys are going to be more of a threat to employment at this price and with their backgrounds in AI than another

acquire or would have been." But again, that's not a reason legally to block a merger either.

“We like consolidation. We like efficiency. That's part of capitalism. I think this is mostly”

political and I understand that, okay, if you're going to weaponize attorney generals and AG's in the DOJ, we're going to do the same thing against your donors. I get it. I like hitting back. At the end of the day, maybe California gets some consolation or they have to spend something, but this goes through. This goes through. This goes through. But again, these guys might be the dog that got the car. That's correct. That is correct. Then what? Look at the dad here and Oracle,

daddy's piggy bank is all 44% because everyone realizes no fucking way open AI can buy a trillion

dollars in Oracle or a hundred billion in Oracle compute. Yeah, that to me, Netflix is the one I would

focus. I still would be bullish on Netflix compared to this. No matter how this turns out for Paramount, it's not good going forward because they're going to have endless things to deal with along with the political stuff, along with it. It just goes, it's much more trouble. I think what Netflix is doing to try to figure out what works is actually a great idea. Even if I think of the half of the things won't work, I kind of like that. They're actually outmaking things,

“and that's what Paramount needs to focus on is what can they do to re-evaluate their businesses.”

And they're not going to, they're, they're stymied by the AGs. They're going to be stymied by the politics. They're going to be stymied very much so by the debt, which is whatever everybody should be focused on. So in this case, Netflix to me is the one that's doing the most interesting. I think. Yeah, you know, it sucks off 50%. I don't think you want to bet against this management team. I think, let me put it this way. I think there's more, again, going back to asymmetry.

If the stock doubled and just went back to where it was, I think people would say,

asymmetry versus the upside versus asymmetry to the downside in terms of, like, is our word for the day? Well, just, my god, you want to talk about the new defense

“department. She's a symmetry over and over. But anyways, I like, I think this is actually an opportunity.”

Yeah, yeah, anyway, it's an interesting time in media. Anyway, all right, Scott one more quick break. We'll be back for wins and fails. There's a civil war happening in the Democratic Party. And if there's one place that that's playing

out most clearly, it's in Michigan, a crucial Senate primary battle in Michigan that could determine

control of Congress in November. Congresswoman Haley Stevens in updool LCA, a progressive Democrat and a moderate Democrat. In the end, it all comes down to the dreaded e-word, electability. But in Michigan, one candidate is trying to turn the electability concept on its head. If we think that voters walk around asking, where do I sit on some theoretical left-right spectrum? Then in theory, the bulk of the voters are somewhere in the middle. The problem, though,

is that that model hasn't really accurately predicted our politics for a very long time. If

“Michiganers wanted moderate, why would they have elected Donald Trump twice?”

Dr. Abdul Elxayet is making the progressive case for America first. And he's trying to settle the Democrats at the illogical battle in the process. This is about the many verses of the money. I'm a stead-horrenton. And this is America, actually. Catch us every Saturday on YouTube or wherever you get your podcast. Every body is beautiful. Yet society is so obsessed with thinness that it has become a

proven financial asset, and there's a $300 billion growing weight loss industry.

If it literally pays to be thinner, our GLP ones actually a worthwhile financial investment. I'm Vivian 2, your HPFF, and on this episode of Network In Chill, we're diving into the thinness economy. It's tangible effects on your income, and the impact GLP ones are having on our everyday lives. No, you don't need to change yourself to be amazing, but yes, you might make more money if you do. Oh, listen, wherever you get your podcasts and watch on YouTube.com/yourrichbff.

Okay, stop from going to your wins and fails. I shall. I don't know. I have two. I'm going to have three. Well, no. Actually, you're show. You're show lady. You do you. I do me. Kathy Griffin put out this great thread showing the picture with her in this 23 year old. You said internet have out it, and I'm like, and I wrote back Kathy, have out it. Yeah, I haven't had anything at all. So enough men are doing the same thing and show yourself.

Enjoy your money. You're going to be good to do what dudes do. Yeah. Yeah. Anyway, as I predicted, speaking of good predictions, the Odyssey did a crazy numbers of the box office and sort of knocked off the anti-woke people.

Oh, I kids went saw it. Yeah, pulling a hundred and twenty four million for opening

on the U.S. 250 million across the globe. Huge numbers. People were just not stopping, nonstop talking about it, which was interesting. Huge sales of the Odyssey itself. The Emily Wilson edition, which is considered much better. Translation, which he based it on, just all over the place, just doing really well. And I appreciate it. It's a great film. And it deserves it. And it shows that if you make really great blockbusters that are interesting and challenging and

a great movie people will go to them and gets people back in the theaters, which is great economically speaking of all the knock-on effects. And I love that they just nobody cared about the

“stupid wokes stuff that they thought might hurt it. I needed it, Chris Nolan. I think they thought”

Chris Nolan was conservative. I don't think he's anything. I think he's just, like, some make good movies. I thought that was, that was great. That was great. It was a fail on behalf of the anti-woke. People, which was great for my thing. I think I'm going to do a fail win kind of thing, Mark Warner, who was at, I interviewed Gina Romando at Johns Hopkins this week, which was a great interview. It'll go up soon. And Mark Warner came to the dinner center, Warner, and then he had to leave,

because he had to go on TV to talk about Trump's crazy speech, which we're not discussing at all, because it was insane, which I think was a big, turned out to be a big nothing burger, his election security. He said, "It's his attempts to slow the election. The mid-terms down the net." There is election interference. It just was impotous when you tried to get votes out of Georgia. Yeah. Yeah, and Af Pro's. So anyway, so Mark is very much, I have to say, I give him a great credit.

And he, he pillored CBS for running the Trump speech for, I don't know, 17 minutes without any comment, especially given Trump's record, by the way, MSNBC did it for 10 or so. I have to give credit to CNN, which I thought did the best job of the handling this, because they had a lot of the digital stuff to do. So they did not run the speech live,

But they did keep feeding Caitlin Collins. I thought she did a great job,

“clips, and then they would comment on them, and fact check them in real time, as they were happening.”

And at the same time, they did avail themselves. They did put the speech on the streamer live, but next to it were reporters commenting on commenting and fact checking in real time, next to the stream, which was great. They used digital means to do this, which was great. They should do that at debates. They should, we have a good idea to years ago. I have a caron with a bipartisan committee doing pants on fire or truth or mostly true.

Right, this is what they did. But they allowed people to watch it, which is like on the streaming,

where it belonged, but they didn't do it on broadcast television. And then they had reporters

reading the documents and commenting on them in real time. I thought, I've got to say, more apparently, from what I talked to people, it seemed like Mark Thompson was behind that,

“because exactly how you handled that. And I think Mark Warner was absolutely correct to pillory”

CBS for just putting it out there without any kind of fact checking. For as long as they did, I think MS should not have done it either. So I'm going to be equal time there, but I thought Mark was great. And he's very concerned about what Trump is trying to do. And it was a real fail on behalf of several news organizations and a win for CNN to be doing it that way. Other, others did not, I think ABC didn't run it, and ABC didn't. But I thought they did the best job,

because it did provide the speech in real time, but put around the guardrails that reporters are supposed to do. So I was really kind of pleased to see that, just to see that done so well in the CNN as it currently runs. And so Kudos to for them and Mark Thompson for doing it. And Mark Warner for warning about it. Go ahead. Yeah, I, you know, there's, there's there's a few

“people you meet and you think this guy would be a great president right now. I think Senator Warner”

would be an outstanding centrist president. Absolutely. I really, he's so, he just had the tragic death of one of his kids, but he's just keep, he keeps going. And I really appreciate his public service. Yeah. Well, there are a lot of calls from the Democratic Party for him to run. People saw him as very electable, but he's, he's had a lot of struggles with it, or he's had

real tragedy. And he's always, as one should opted for first family. Anyway, okay. So my loss is,

again, and we have to point this stuff out. And I always promise myself, I'm going to be more focused on business and tech and less part of the rage cycle. But I do think it's important. We continue to point this stuff out. Trump media is building a paid subscription product out of insider trading. And that's not hyperbola. It's, that's the actual SKU here. The offers the following for a fee, Wall Street firms or investors get Trump's true social post delivered in milliseconds ahead of the

public feed. So insider trading. That's it. It's front running insider trading. The launch is August first. Clients are already signed up. And Trump owns 41% of the company and he's selling or, you know, so like, let's strip the euphemism. This isn't a data feed. It's a front running service. And the product being sold is an information. It's the ability to trade on insider information before the country reads the same sentence. And so why, why does this matter? And April

Trump posted that Iran had fully re-opened the straight-of-horn moves. It was false. Oil moved anyways. The post was the event. The truth was optional. So he can, he can move markets if and when he decides it's beneficial for him. The people paying for his insider trading API. Trump has used true social to move markets on terrorists, fed personnel, military strikes. Every one of those posts is now a product with a millisecond paid tier.

And every, every rule in modern securities law. Reg FT, blackout windows, insider trading statutes exist to prevent one thing. Someone getting to trade a material information before everyone else does. And the reason we do that is the reason capital formation is unparalleled in our society. And companies get access to cheaper and cheaper capital, which means crazier and crazier ideas deeper in the barrel get funded. And occasionally,

those deep in the barrel batched crazy ideas end up being alphabet. And we end up having more tax revenue, and more jobs for our kids is because the 99% of investors who don't have access to

no stock market despite being a real economy and having a lot of firms that create a lot of

“cash flow value because the populist believes and knows the game is rigged against them. And so they”

don't invest in it. And if you, if you continue to have a small group of people who can engage in and said, it's getting to the point now where everything's gambling and as someone else is the house, because you don't have inside information. No, it's just so blatant. It's so crazy blatant. It's nuts. Well, it's a logical endpoint of a pattern that's existed for a while.

2.2 billion a Trump's disclosing come during his time in office, 1.4 billion of a crypto,

more than any public crypto company made last year. Also, it stock trades also. 22,000 of them in 2025. Biden made 13 in a soul presidency in video shares bought a week before commerce approved in video chip sales to China. Palantir bought nine times before he publicly praised its warfighting capabilities. Meanwhile, SEC enforcement actions against public companies,

“80 a year under Biden. Yeah, four in the last year. Enforcement is down at FDA. Well, that's why we have”

suddenly Legionnaires, these is back. Why we have the dirty, let the poopy lettuce. He's trying to take out scientific things on judges today. Like every day, it's a different thing. This is like a removal of all government regulation in order to help people make money. Markets functioning markets of which we have the best in the world. And again, people don't, people they for granted

how incredible it is for small companies. I was able to raise hundreds of millions of dollars in my

30s for batched crazy ideas and some work and some didn't. Where else can you do that? Yeah, I agree. Where else do the most talented people in the world want to come to business school here and then head to the valley so they can start these crazy fucking ideas and they can find capital to do it. The difference between us and Europe or one of the biggest differences comes down to risk. People who are willing to bet their human capital on something and

capital willing to risk their own money on those crazy risk takers. And if the game is rigged, that capital starts to go somewhere else. They markets run on one assumption.

Price reflects information available to everyone at roughly the same time. That's the whole

shooting match. And truth APA doesn't cheat on that assumption. It sells tickets to that cheating. And once Wall Street has a fiduciary reason to keep him posting, you haven't just corrupted president, you've made corruption a casual positive business model. This is this is putting in place

“structurally corruption and seeds of doubt around the market. And why wouldn't Wall Street buy it?”

I mean, it's a chance to make money. You make money? I'm tempted to buy it, Cara. All right, I know. I thought, okay, it's a hundred grand. I'll trade on it. If I make make money, I'll donate a democratic candidate. And then I thought, okay, is that a good or a bad idea? I don't. Yeah. Yeah. You doesn't care about people. Maybe it doesn't amount to anything. And also, I don't have the infrastructure to trade on them. They are going to be selling the silver

wear from the White House before they go. They're going to put it on eBay. They're going to put on plates on eBay. This feels like it was tailor-made. And I have no evidence of this. But but Citadel is some of the brightest minds in the world. They built. They spent millions building just a cop a wire to their headquarters, where they would get information in millisecond faster. And then they have to technology to trade on it. And by the way, it's

perfectly legal. This feels like a quantum trading, whatever the term is, went to him and said, we have an idea. Yeah. Of course. No. He's done this over and over again. Selling access. Selling access. What it is. This is this is. This is. This is operated presidency. This is not only corrupt. It is going to cost entrepreneurs in the markets. And it's going to, it threatens this unbelievable thing that is on parallel and that is capital formation. All right. My win is what

I'll loosely call Gen Z's man to brothers. And that is military recruiting or the military recruiting crisis, at least in the short term appears to be over. And Gen Z is ended it. The Navy Army Air Force in the space hope for a civil hit there 2026 recruiting goals nine months ahead of schedule. That's the strongest recruiting class in 15 years. It's the testosterone isn't it? You got three years ago, the services fell short to their goals by as much as 25%. ROTC is surging Dartmouth program group

from a cadets at 35 and three years. And this is happening despite a very unpopular conflict

everyone, of course, is climbing credit. Secretary Hexess has the military stopping woke recruiters

point to prep courses and modernize outreach. But the best reporting on this has been from the Wall Street Journal. And they talked to the recruits themselves. And it's a much simpler story. Well, the military is selling with the rest of the economy stop providing. And that is purpose and belonging. One sailor, and I thought this was very moving, said he joined because he wanted to find my place somewhere. That's where young people want. They just want to find their place.

Economics are playing a role here full tuition ROTC scholarships. It's a college course, or plus healthcare and education benefits, rights. They're offering this just as the entry-level

“job market appears to be softening. Also, I think it comes down to one words. And that is trust.”

Institutional confidence is collapsing everywhere. You have the military ranks as America's

second most trusted institution behind only small business. So I've also said, I think the arm

services are, I think there's a lot of young people, especially young men who are really untethered, wandering and lost. And I believe that the service is, it's obviously not for everybody. But I think for a lot of people, it's a fantastic means of marinating, feeling a sense of purpose, meeting other people. I would agree. You know, I wanted to go with the military. Yes, I know you did. And my dad, let me just say my dad, one in the military right after college.

Who's a doctor, right? He was sent him to college. He had sent him to medical school and he served for 10 years and then he died right when he got out. But he, he, this is how he did it. You know, he was from a family of limited more limited means. And this is how he got, you know, he got out of West Virginia essentially. And one of the only problems that I have right now, it will besides headset is more on is with holding promotions from women and people of color. Or scrubbing the name of gay veterans off

of ships. Like unfairly not promoting women. Like he has a thing out for women and people of color in the top ranks. And that's grow task. Like that's supposed to be the fairest place in the world. And the fact that he's holding their talkers. This is not, they didn't get their promotions because it's woke. It's just gross what he's doing at the top in terms of withholding those things. And that's not what the military's about. But I do think it's a great alternate. And the question is,

are they really screening people? That's the thing. Look at what happened at ice. This guy who

“just murdered someone I think was was never vetted. Like the vetting has to happen because this”

one guy who shot turns out he is very severe mental illness. I think when they go through the ice vetting when this is all cleaned up, it's going to be pretty repulsive the kind of people they let handle the gun and told to get out there and chase immigrants. Our military managers are clearly doing something right. And that is if you look at leadership, if you look at elected officials, if you look at successful business people, if you look at some of the most successful people in

business school, we have a wonderful program at NYU Stern where we're bringing veterans. If I don't mind, am I company and it's not, it's not, I mean, it's a little bit of patriotism.

But we always interview veterans. They're very impressive people. And as a matter of fact, until

this year, 70% of the men showing up to recruiters' office didn't qualify because of obesity, or they were unable to pass the mental health test. Or education. So Gen Z signing up not only reflects more patriotism on their part and different things some good, some bad in the economy. It reflects the young people. It reflects well on young people. And also there's nothing, there's no greater leveler in the United States so far than the military because nothing like being in a fox hole

or counting on someone for your life or the life of others puts race, how rich their father is, their sexual orientation in a fucking backseat where it belongs. It's like, can I trust this woman with my life? And I don't care who your daddy is. Do you didn't want to go into military, right? You didn't have an interest in it? Oh no, my dad took me to anapolis. He was in the world, Navy. And it was one of those moments, Kara, we went and we toured anapolis where it was clear my parents

lack this sophistication to know what was going on. Because we toured anapolis and my dad wanted me to go and we were pretending that I was going to apply. I didn't have the grades. I didn't have

“the SAT scores. And then they, they said you have to get a letter of recommendation from one”

of your senators. And like, we're fairly like lower middle class. We didn't even know how to go about that. It just, the tour cry frankly was one of those moments where you realize like you're unremarkable and you have no business being there. And it was just sort of, I just remember

And my parents don't even realize there's so much sophisticated. They did no homework on what's

“required to get into anapolis. Don't know, no, no, no, no, no. I feel bad for young Scott.”

Oh, now I feel pain for a young Scott. I would have been an ad. Oh, yeah. So instead, I went and like went to like crazy fucking fraternity parties and like made out with hot women at UCLA

and I did things worked out. Yeah. Anyway, we want to hear from you, send us your questions

about business. Heck, or whatever's on your mind, go to nmymag.com/pivot. Just a minute

“question for the show or call eight five five five one pivot. Elsewhere in the Kara and Scott”

universe this week on on. I'm talking about the rise. It's an insurgent progressives with a panel

of political experts. One of them is Amanda Litman, co-founder and president of run for something

a great group attracting young people of all kinds to public office. Let's listen to a clip. If you don't like DSA, it is possible for the establishment wings of the party or the old guards such as it is to offer a different vision. Like they could avail themselves of selling something that would solve the problems and speaking to the anger people feel. The fact that they have instead chosen to punch left or to, you know, blame the young people who want these

“wild and crazy things like make an argument. I think she makes a good point. Make an argument.”

I think it's a great. It's a really interesting organization. Okay, that's the show. Thanks for listening to Pivot and be sure to like and subscribe to our YouTube channel. We'll be back on Friday. Today's show was produced by Laren Amen, Zoe Marcus, Taylor Griffin, and Todd Wiseman, earning her tight engineered the episode. Thanks all sorts of Dubro's, Mr. Vera, on to Ante Salon, to shot croiss. Fox Me is executive producer podcast. Make sure to follow

Pivot on your favorite podcast platform. Thanks for listening to Pivot from Box Media. We'll be back later on the week for another breakdown of all things tech and business. Congratulations to Team Spane, beating Argentina 1-0. In extra time, Golden Ball, Best Player, Rotary from Span, Golden Boot, Killian, and Bob Bay. Got a crowd of all tangles, edging messages. Eight, a wonderful career from Messages with Glass World Cup. The Golden Globe, Best Goldkeeper, what a wonderful tournament.

Thanks to everyone who came and well done in America.