 the radical, fundamental principles of freedom, rational self-interest, and individual rights. This is the Iran Book Show. All right, everybody. Welcome to Iran Book Show. Last-minute pivot here. New topic. Thank you, Cook. So, here I am, preparing to do a show on boring Joe Biden economic voodoo economics I called it, minimum wage by America. And I was already, already for that, you know, reading up last-minute some additional stuff on minimum wage proposals, and then Cook sends me this, what are your thoughts on what's going on with Reddit and GameStop? And it's like, God, why didn't I think of that? That would make a much better topic. I know a little bit about finance. I know a little bit about short-selling. I don't know much about GameStop. I'll give you that. But this is a perfect topic for the Iran Book Show. So, here we go. Somebody's asking, are you going to the next aucoin? Definitely. I'll be speaking there. Let's hope it happens. So, here we go. We're going to be talking about GameStop and Reddit and short-selling and short squeezes and option buying and call options and put options and, I guess, a hatred of hedge funds. That's kind of interesting. And all of that. So, I don't know how many of you are familiar with what's going on. So, I'll give you a quick update, kind of, of what the topic is and what's happening. And so, you can all catch up. Then we'll get into it. We'll, you know, and I'll tell you what I think and we'll see where it takes it. So, this should be fun and you'll probably, you know, one of the things you'll find is, you know, that I'll be one of the few people out there in the universe who's actually going to defend the short squeezes, the hedge funds, the guys shorting the stocks and analyzing it to a large extent from that perspective. Okay, so what's going on? A couple of things. First, well, yeah. First, there is a stock called GameStop. GameStop is a company, brick and mortar company. It has stores where they sell games. You know, if you might have been in one, you might see them at strip malls that I think they're all over the country. Like most brick and mortar companies, they're not doing well. Their stock was pretty cheap. They, you know, COVID has not been a help. They've been really struggling. So that's item number one. Item number two. Over the last few years, we have seen the development of retail stock buying platforms. Robinhood comes to mind that make it super cheap to buy and sell stocks, to trade in the marketplace. Super cheap and really easy, you know, interfaces, user interfaces that are simple to use, easy to use. And these have become the favorites of, you know, 20, 25 year olds, 30 year olds, 40 year olds to trade. Add to that the fact that a lot of people have been at home and out of work and maybe have some stimulus cash in the bank account and not very busy and day trading seems like a cool thing to do, you know, buying, selling stocks. So that's item number two. Item number three, Reddit, which is a very popular, what is it? Chat, social media type platform where people chat and discuss different issues. Well, Reddit has a number of groups that engage in discussions about trading. And often, you know, there's a discussion and people get excited and they all go into stock together. And the stock price goes up because they're all trading into the stock all at once and then maybe they get out. And over time, I think that many people on the Reddit platform have come to the conclusion that they're, you know, kind of geniuses and they're really smart at this and they're really good at this as day traders tend to convince themselves. And they have a communication platform with thousands, maybe tens of thousands of other people who are, other people who are, you know, like them, day traders and on Reddit and are ready to pounce and ready to move quickly and can move large amounts of money, small amounts of money, but large numbers of people pretty quickly and therefore impact stock prices really, really quickly. So you add those components, the ability to trade quickly, cheaply. The chat groups where people follow each other, that people get people, each other excited very, very quickly. So madness of crowds kind of impacts where everything is wild up and people move in groups, in, you know, mobs into the stock market driving prices up. And then a lot of stocks that nobody's paid attention to a long time like GameStop that are pretty cheap and that are pushed down and maybe there's a corporate event. I think in GameStop there was a replacement of CEO and the stock stack's moving up because some people think a little bit more optimistic about the stock. And then that is makes it noticed by the Reddit community and the Reddit community starts buying and the buying drives the stock price up. So then the buyer say, whoa, look how much money I made on this. Maybe we should buy some more. And they buy more and then they buy more and then they buy more and it goes up and up and up and they get more people excited. Hey, you're missing out. If you don't invest now, you missed out on a great deal. And then they use options. Options is where you buy an instrument that you make money. If the underlying asset, the stock in this case, goes up a lot, you make even more than what the stock grows. But if it goes down, if it stays the same, you lose everything. The value of what you bought goes to zero. So and buying options can drive stock prices up by the fact that in many cases, in some cases, the person who sold you the option buys the stock in order to protect himself just in case the stock goes through the roof. But him buying it drives the price up. So what has happened to GameStop? GameStop over the last, I mean today, today's Wednesday. Yeah, today GameStop shares went up 157%. And what did it take for GameStop shares to go up 157% is for Elon Musk before the market opened today, he tweeted GameStunk. Stunk is used as investment banter on Reddit. And he just put the name in and it went out 157%, no other news available. In addition, before today, GameStop was out, how much was it? Let me see if I can get the exact number. 3,700% over the last six months, most of that happening over the last couple of weeks. 3,700%. The stock is worth, I don't know, the company is now worth $30 billion for a brick and mortar, brick and mortar game store. Complete nonsensical, completely makes no sense, complete ridiculous. Now, part of what drives the stock up is, let's go through, I don't know how many of you know what short selling is. So as GameStop went up, it got to a point where some investors, for example, hedge funds, some sophisticated investors, investors that are in the markets, that have a lot of money in the markets, that analyze markets pretty carefully. As the stock went up, these hedge funds came in and said, you know, the stock doesn't make sense that it's this expensive. We're going to short the stock. Now, what does a short mean? A short means the stock, selling a stock you don't own. So how do you sell a stock you don't own? Well, what you do typically is you borrow the stock from somebody who owns it, you borrow the stock. Let's say the stock is selling at $50 a year and you think it's going to go down. So you borrow the stock at $50 and you sell it. So you get $50 in your bank account. Now the stock goes down, let's say it goes down to $25. So at $25, you now buy the stock at $25 and you return the stock to the person you borrowed it from, because you still owe the stock. How much money have you made? You made $25, you made 50% on your so-called investment. Remember, you borrow the stock, you sell it, then you buy the stock when it goes down and you return the stock to the person you borrowed it from and you made money if the stock goes down. What happens if the stock goes up? Well, let's say again you borrowed the stock, the stock is selling at $50. Let's say the stock goes up to $100. Let's say the stock goes up to $100 and the guy says, I want my stock back. Then you have to buy the stock for $100 and give it to him and you lose 50. Let's say the stock goes to $200 or the stock goes to $300 or the stock goes to $3,000. Now you got $50 in your pocket and you owe the guy a stock that is worth $3,000. Now imagine you did it with more than one stock. So part of what happens that causes the frenzy on the upside is called the short squeeze. At some point, the guy who, let's say I'm the guy, I borrowed the stock, I'm sitting there. The stock keeps going up and up and up and I think, oh my God, my ability to lose money here is infinite. It can keep going up and I'm just losing money the more it goes up. So what I do is I buy, I cover my short and that's called the short squeeze. When the stock market is, the stock has gone up so high that I can't afford to wait. I have to buy the stock and return the stock to the guy I borrowed it from and get out of there. A short seller has unlimited downside risk. He can lose in theory, not in reality, but in theory, an infinite amount of money. How much can he make? The best he can do is double his money. So it's very asymmetrical risk. You can double your money if the stock goes to zero, but you can lose an infinite amount, an infinite amount. So the short squeeze is when those shorts get out. Now, when a stock goes up 3,700% and it's not just one stock. You know, the stock of Blackberry, you remember Blackberry? The phone, the email thing, it's an awful company. I mean, it used to be great, but it can't compete. It can't compete with Apple, can't compete with Samsung. It's been skyrocketing. So a bunch of these stocks are skyrocketing. There are companies out there, hedge funds out there that specialize in shorting these stocks. Now, is shorting a good thing or a bad thing? Or shorting is... So, okay, we'll get to shorting a bad thing, good thing in a minute, right? Because that's a whole other discussion about stock prices. So as the price is going up, the shorts are getting squeezed. They have to get out. They lost a huge amount of money, and at least in one case, Melvin Capital. Melvin Capital was almost wiped out, almost wiped out. A lot of these hedge funds use leverage, and it's very, very, very dicey for them. So in the case of Melvin, which was almost wiped out. But, you see, the underlying trade is a good trade. Melvin is right to short these stocks. In the long run, Melvin will make money. And the people running Melvin are smart guys who, in the long run, make them market more efficient. I'll get to that in a minute. And what they do is absolutely true and right and correct. And yet, they're being driven out of business. Now, you know that these guys are basically good guys, and they know how to make money, and their business is good, and their decisions are good. How do you know this? Well, you know it by the fact. You know that by the fact that Melvin Capital is being bailed out. Not by the government, God forbid. And if the government were bailing them out, I'd say, who knows if Melvin is good or not, from a business perspective. No, Melvin is just being bailed out. Bailed out bail out is the wrong term. They've just got a two and a half billion dollar investment. I think Jonathan is here. Jonathan also runs a hedge fund. Wouldn't you like a two and a half billion dollar investment from Citadel and 0.72. Two of the best hedge funds in hedge fund history. Citadel and 0.72 who manage, I think, hundreds of billions of dollars. And who just gave 2.5 billion dollars to Melvin. Why? To make money. They didn't give it out of charity. They didn't give it as a bail out. They gave it as an investment. They figured Melvin was down. If somebody says it's 2.75, maybe I wrote it down wrong. Melvin is down. We can make an investment on pretty good terms. And believe me, they got good terms on this. Otherwise they wouldn't have done it. We're going to make a fortune when Melvin comes back. And that's how you know Melvin, no idiots. The short sellers of GameStop are no idiots at all. So, okay, so we've got, start going through the roof. We've got hedge funds who short the stock getting squeezed. Now I'm going to tell you a personal story. Because this happened to me. This happened to me. I mean, I think, the guys that read it think they invented this. That this is the first time it's happened. There's nothing wrong with overshorting. I mean, they didn't overshort. They, you know, they shorted stock they didn't have. But in normal times, there's nothing wrong with that. And it's not pump and dump. The pump and dump is what the Reddit guys are doing. So here's my story. Right. This happened a long time ago. 1999 happened in April 1999. In April 1999, this is in the midst of the dot com bubble. And I know some of you weren't born back in 99. So this is ancient history for you. But there was a dot com bubble and it's in a bubble. And, you know, there was a week in April of 1999 where any bank, I invest in banks, boring brick and mortar banks, like GameStop, right, boring stuff. And there was a week in April of 1999 where every bank that announced that maybe one day it would have a website, maybe one day it would do internet banking. The stock doubled or tripled for a day, maybe two, and then went back to normal, right? So everybody rushed in, stock went through the roof, and then went back down. By the way, this happened during Black Lives Matter. Black-owned businesses that traded in a stock market like black-owned banks went way up and then came back down to the fundamentals to what? But they went way up because everybody was excited about investing in black-owned businesses, drove the stock up, divorced them fundamentals. They came back down to their normal level. Anyway, these banks all doubled and tripled within a day, two days. Not 3,700 percent, just 200, 300 percent. And I, during that period, had a short on a bank called Net Bank. You can look it up. Now, I don't remember the exact numbers, but this is approximately, this is part of managing somebody else's money, and I had a short on Net Bank. Why did I have a short on Net Bank? Because it was already, at the time I put the short on, the most expensive bank in the United States. And that made no sense. It couldn't make a lot of money. It didn't make a lot of money. It had a pretty simple and business model with no upside, no world upside. So, I think I shorted it at $40 a share, let's say. In a matter of two days, the stock went from $40 a share to $160 a share. Now, I, just to give you a sense of how much money you can lose in a short, I had a $200,000 investment in it, so maybe I shorted it at less than 40. And at the peak, when it had gone up, I was down a million dollars. So, in a sense of $200,000 investment, I would have lost the $200,000 plus another $800,000. So, I was down a million dollars on this stock. My investor called me up and said, what are you doing? I said, don't worry. The stock's going to go down. There's no question it'll go down. It's not worth $40, never mind $160. It's just not worth it. And he said, look, that's not how you do this. Get out. So, the next day, luckily, it went down a little bit. I got out. We still booked a huge loss, hundreds of, you know, close to a million bucks. Within two years, two years, the stock went to four. Within four years, the stock went to zero. It basically went bankrupt. So, even though I was right, I was in the same position as Melvin, I couldn't bear the losses. And I had to get out and I booked a massive loss, right? That's what's going on with GameStop. Now, what will GameStop be worth in a year? Two, three, four? Very little. Very little. Stock can't stay that high. You can buy and buy and buy. But at some point, at some point, it's obvious that the stock price is completely divorced from the fundamentals. KL says, you're on book, I told you so, as if I would say I told you so. Yes, but that's not the point. The point is as an investor, you can't do that. You can't, there's only so many losses you can absorb. There's a certain level of losses you can't absorb as a fiduciary managing other people's money. You can't keep absorbing the losses. And in the dot-com era days, stock prices could go up and up and up and up just like right now. You don't know where it ends. You don't know how much. You don't know when your investor's going to want his money back. You just can't do it. And when you withdraw your money, when you withdraw the short, you're buying stock which helps the bubble and the bubble can keep going. At some point, all bubbles boost. At some point, the price comes down. Now some people are going to make a lot of money on their way up here. The smart ones are going to get out in time. A lot of people are not going to be smart. A lot of people are going to be the people who say, oh, I missed out. Let me get in now. And at some point, the stock will tumble. Stocks' prices are not random. Stock prices are based on the potential of a company to produce cash flows. A stock price is the present value of future cash flows. In other words, of future profits in a sense, but it's not accounting profits. It's economic profits. So the present value, the value today of all the stream of cash that this company is going to generate in the next 20 years. And indeed, in an interesting environment where interest rates are very close to zero, cash that a company generates in 20 years is very valuable today if you believe there's going to be no inflation, if you believe interest rates are not going up. So stocks should be higher given lower interest rates. It can be this higher. Not for a company that can't produce the cash flows. Where is GameStop? Going to produce cash flows 3700% greater than what they were supposedly producing just two months ago, three months ago, four months ago. It doesn't matter if interest rates are zero. It's still true that a company is, the company's value is the present value of future cash flows. The future cash flows might be priced at zero, but even at zero interest rate. There's risk. You have to have some discount rate. If there's no risk, why is there no risk? The company could go bankrupt. The company could have less cash flows than you expect. I mean, I have heard this story of the laws of finance are gone. Growth companies are all the matters. Stocks can only go up if they grow. I've heard that story before. And whenever I've heard it, whenever people start telling me that story, that's when I know it's time to sell. God, that's when I know it's time to sell. Because that is BS. Companies has produced cash flow. Cash flow has to be discounted. Now it's true. Amazon, Apple, Google, you think there's no risk in Amazon, Apple, Google's stock price? Not stock price, future cash flows. You think they should be discounted at zero? As if there is certainty? That is ridiculous. Now interest rates are low. So your inflation premium is very low. But at some point, at some point, any one of those companies could fail. Not fail in a sense of go bankrupt. Fail in a sense of produce earnings that are disappointing. So I don't know exactly what the stock price of Amazon, of Google and Apple should be. I suspect lower than what it is today, but I don't know. I don't know. I haven't run the numbers. I can guarantee that the stock price of GameStop and BlackBerry are not where they should be. Of course, text is exponential. But from what levels? Is it always exponential? Is there no ending it? I mean, if text is exponential and you run the numbers, Google, Apple and Amazon will basically own the entire world if that were true. None of that is true. You can imagine that stock prices can only go up. And you will suffer the consequences. And you will suffer the consequences. I mean, I heard exactly the same thing in 1999. Now it is true that if you, by the way, in March of 2000, technology stocks went down. And over the next few months, the NASDAQ went down over 50%. It took almost a decade or more than a decade to get back to where they were. Our tech stocks right now in that position where they could drop 50%. Certainly Teslas, certainly many other stocks. By the way, many of those tech stocks in 1999 went to zero. Some of them went down 80%. So stocks have to reflect the fundamentals. Stocks have to reflect the underlying company's long-term profitability. Stocks have to represent the whiskiness associated with that long-term profitability. I don't know what is better than tech stocks. It depends on what? It depends on the valuation. Yeah, the hyper growth profits, but if it's all priced, if that's already in the price, then it could still go down a lot. You could easily overprice tech stocks, easily. You don't know what the return of investment is going to be in the future on a stock, even if you know what the return of investment is going to be in the future in the company. So every time markets have detached fundamentals from stock prices, we call that bubbles. They end badly. People lose a lot of money. A lot of money. And I suspect some people are making money right now. Somebody is going to lose a lot of money on game stock, blackberry and these other stocks that the reddit people are driving up. Fundamentals are not dead. Fundamentals will come back. Fundamentals might be dead for a month. They might be dead for a year. They might be dead for two years, three years. But they will come back and they will come back with a vengeance. And when they do, some of you will be holding the bag. We'll be holding the bag. And again, I'm not giving stock advice. I'm not telling you what stocks I don't know if Amazon, Google and Apple are overpriced or not. When I say fundamentals, do you mean reality? In a sense, yes, but a particular aspect of reality, the reality of the profitability of the company, the reality of the ability to make money. I love the reality of the ability to make money. That's a reflection of the stock price. And when people start making arguments that Apple goes up because you love your iPhone, it's time to sell Apple. I'm not saying it'll go down tomorrow, but this is exactly the kind of thinking detached from reality. Thinking detached from economic fundamentals, thinking detached from financial fundamentals. That it's when people say that, like, you know, Tesla is really, really expensive. And John Galt of all people tells me, have you ever been in a Tesla? By the way, the two are unrelated, completely unrelated. You can produce the best product in the world and your stock price could be higher than what it should be. Everybody could love your product and your stock price could be higher than what it should be. And I heard exactly the same thing about Pets.com in 1999. Where's Pets.com right now? It's zero. And it went to zero very quickly. And a bunch of other things that were before the time. Now, I'm a huge fan of technology. I'm a huge fan of technology stocks. And long term, I think technology is going to be great. And when these stocks go down in the next, call it correction, I'll probably be buying. Would I buy tech stocks right now? I don't think so. Now, I'll be doing some research to try to put a number on these. But right now, no, I would not buy tech stocks. Certainly not Tesla. I'm sure there are tech stocks that might be undervalued, that it might be good deals. I don't buy ARK investing or any kind of investing. Investing principles like economic principles, they don't change with the mood. It is true that technology has some exponential growth. And technology grows at a faster, good technology. Technology that wins an end, which is very hard to determine who's going to be the winner. That technology does have unique growth opportunities. But that and stock prices have to be correlated. And right now, they're not correlated. I will look at ARK Invest because I'm interested in people who invest in innovation. And I don't know why that's doing that. It's called, recommends a company called ARK Invest. I'll look at it. But as I said, it'll be interesting to see what their research looks like. It'll be interesting to see what's, you know, I'm all for exponential growth. That's great. All right. So let me just, I just want to say something about why this is troubling, scary, other than, you know, it's scary because I've been in the middle of it and lost money. I mean, I give you the example, Net Bank. Net Bank was the future. And it was the future. I mean, the future of banking is the internet. But was Net Bank the one that's going to take advantage of it? No. And I could see it in 99. And everybody, I'm sure all the ARK investors of that time were rushing into it. And ultimately drove it up to, I don't know, 200 bucks a share. And four years later, it went bankrupt. That's what I'm talking about. Stock price and the underlying technology grew exponentially. The underlying technology of internet banking dominates the world today. But it wasn't Net Bank that benefited from that. And it certainly wasn't the shareholders of Net Bank that benefited from it. Why is the phenomena of Reddit rushing into stocks and driving them up so negative? Well, one is having stock prices that actually reflect reality, that reflect fundamentals, that reflect the true nature, the true nature, the objective nature of the company, the objective price, value of the company is crucial for the functioning of markets. Markets are used, prices are used to allocate capital. Prices are signals that as to where to allocate capital, start going up in normal circumstances, is a signal that that is a growing, thriving, interesting opportunity to invest. And allocators of capital, whether it's banks, whether it's investors, whether it's all kinds of investors, start looking at that area. So I'll give you an example in the beginning of an automobile industry. Automobile stocks went way up. And all the people who invested in buggies, remember buggies, horse and buggies, looked around and said, whoa, what's going on here? Oh, it's a competitor to buggies. And they started selling buggies and putting money into automobiles. And that was good. It's a good signal. And it's good to destroy, if you will, the capital that's in buggies, to reallocate the capital in buggies to something productive because buggies are a dying industry. So stock prices going up and down based on fundamentals, based on what's actually going on in the world, is crucial to the functioning of markets, crucial to the allocation of capital, and therefore crucial to capitalism or to even semi-capitalist markets. If capital starts being allocated, based on prices that are not connected to reality, it is an economic disaster. So let's say, now in this case I think markets know, but let's say markets think, oh my God, GameStop, whoa, that probably means that brick and mortar stores have increased in value dramatically, and that's the future. And everybody rushes into investing brick and mortar stores as they collapse. That would be a disaster for markets. And to the extent that stock prices are just giving confusing messages that people now don't know, is this a reddit stock, is this a meme stock, or is this something else, creates confusion in capital allocation, and creates less efficient markets, less wealth creation, real wealth creation, and long-term economic harm. So this reddit stuff is not harmless. It is harmful. And to the extent that it extends to other stocks, other industries, other players, it can really cause havoc. And people are celebrating this. So here's one guy on Twitter writes, and he's got 4.8 thousand likes. He writes, they took our stimulus. We took their hedge funds. So this is, and he's got a, in the background, he's got a building burning, you know, like a riot where a building is burning. So we're burning down their house. But whose house are they burning down? They're burning down the house of hedge funds. Hedge funds who short stocks. But hedge funds that short stocks are essential, crucial, to helping make prices efficient. To helping make prices reflective of real, true value. So that the allocation of capital in the economy can happen effectively. If you are going to destroy hedge funds, you're destroying markets, you're destroying the allocation of capital, and you're destroying the economy in which you live. So it's not neutral. It's not a game. Indeed, it's not a casino. If it was a casino, who cares? A casino that house loses, you win. It doesn't really matter. Here it is immensely important. Prices are a crucial indication, crucial indication of where to invest capital. They determine which industries grow and which industries shrink, which companies grow and which companies shrink, which managers are successful and which managers are not. And it's long-term, it's not short-term. And these nihilists who are not only playing at roulette and watching hedge funds burn, they're enjoying this. They think it's a game. They think this is wonderful. But it's the hedge funds that are shorting these stocks that are heroes. They're the ones holding onto reality. They're the ones who have grasped reality, holding onto reality, and trying to live by reality. Whereas in a sense, these people are just rejecting reality, denying reality, placing their wishes, their whims above reality. This is, somebody writes here, nihilism arriving in the stock market. Absolutely. Now, again, this happens. It's not only driven by nihilism. It's just driven by madness of crowds. It happened with a tulip bubble. It's happened with other bubbles. It happened at the dot-com. It happened with bank stocks during the dot-com, the story I told you before. Sure, 140%. It wasn't a hundred and fifty percent. That's their problem. There's nothing wrong with naked shorts. You just have to buy more stock in order to cover them. And if the price of the stock is so ridiculously high, why not short as much as you can? That's completely connected to reality because it's completely connected to the actual value underlying this. Now, if you're interested in my arguments for the stock market, I've got a book that I wrote called Mall Defense of Capitalism, which you can buy on Amazon. You can get it on Kindle. Mall Defense of Capitalism, which actually goes through why financial markets are mall, why they're good, why they're right, why they work, why short-selling is a good thing. Short-selling is still in a 60% of float after the stock price has already gone up quite a bit, not after the latest bump-up, but after a significant increase, a significant increase that had driven the company up way above anything that was reasonable in terms of what the fundamentals indicated. And again, I don't have a problem with shorting more than the float. The people who crashed the plane are the people who are playing this as if it's a roulette wheel. It's not the Mall Defense of Capitalism, it's the Mall Defense of Finance, and it came out three years ago and it's co-authored with Don Watkins. Don Watkins and myself, the Mall Case for Finance, and you can find it on Amazon. Just put my name on Amazon and you will find it. There's a hatred of hedge funds. Why? Because people don't understand what they do. They don't understand the importance of a stock market. They don't understand the importance of stock prices. They don't understand the objective value of marketplaces. And they resent wealth. They've always resented wealth derived from finance, always going back to Jesus kicking out the money changes from the temple. Money derived from money has always been resented. And again, I go into great depths in analyzing the hatred of financiers in the Mall Case for Finance. Let me just look. I thought maybe I had a copy back here of the book, but I can't see it. Yes, and I connect it to anti-Semitism in the book, but the Mall Case for Finance on Amazon, Indefensive Finance on Amazon, I've given a course on it. You'll find it in the bookstore. All right, that's my commentary on Reddit. If you own these stocks, sell. Here's my investment advice. If you own Blackberry or GameStop, sell. Miss out on the next layer up, but you will also miss out on the big, big move down, which is coming and it'll happen quick and it'll happen fast and it'll whip-saw these people. They won't know what hit them. They won't know what hit them when it happens and it's going to happen. I mean, remember, these are not technology companies. These have become more than companies. All right, let's see. Now, some of this, somebody's asking if this related to QE. Yes, some of it is related to QE. I think some of it's related to the fact of stimulus checks. Some of it's related to the fact that there's just a lot of money. There's a lot of money sitting in checking accounts. There's a lot of money sitting out there. There's also zero interest rates. It's just very hard to get any kind of return on your saving account or in any kind of CD or things that traditionally people might have put cash into and people are figuring out it's free money that government gave it to me. Why not jump in and gamble with it? And I think the fact that Robinhood has made this so easy, so cheap, so cost less is part of this. It makes it easy for people sitting at home and everybody's at home. People are not at work and why not? So, yes, this is related to QE because of the amount of money that's slushing around in the system. I don't know that it could have happened otherwise. It's really hard to tell. And again, it's a consequence of zero percent interest rates, which is related to QE. And it's not really QE. It's physical stimulus. It's just the fact that we keep increasing the amount of money people have out there and money held in the banks and money in checking accounts and so on. Unintended consequences of zero commissions? Yes. Not that I'm against zero commissions, but yeah, partially this is what happens. Everybody feels like there's no cost to going in a casino and they think they're just as smart as the hedge fund manager. What does he know that I don't know? I'd be fair value of GMEs, GameStop. I don't know probably what's it trading at $134. Is it worth more than, it's probably not worth more than $10 is my guess. So if I had a guess, but don't use my criteria. Somebody says around four, probably a better estimate than my 10, but certainly less than 10 from the 138 that it's been at. So yeah, I mean, new owner, somebody says, new owner's going to move it 95% online and close most stores. He's going to close most stores, not going to get any value out of it. It's unlikely he owns the stores that probably leases taking it online. Why is that a value? He's then competing with Amazon. He's competing with other online gaming stores. His profit margins are not going to increase. He's going to decrease costs. So maybe instead of four to a 10, maybe, but it can't be worth 138, right? So, you know, it's hard to tell what the dollar is worth. Derek says to be fair, Tesla Bitcoin US dollar aren't real either. I don't know if the dollar's not real. It trades regularly against gold. So I think we have a good estimate in gold terms of what the dollar is worth. Maybe gold buyers are not aggressive enough in buying it, but I don't know anybody else better to estimate the value of the dollar than those who are buying and selling gold. In terms of Tesla, yeah, I think Tesla is way overvalued. But again, I haven't run the numbers. I don't know by how much it's overvalued. And what was the other one? Bitcoin, yeah, Bitcoin. I have no idea how you value Bitcoin. So I don't know how you make it real in any kind of sense. I don't know what the value of Bitcoin is. And let's see, let's do, after watching many hours of your content, I guess you deserve five bucks. I don't know if to take that as a, I'll take it as a compliment. I think I deserve more than five bucks. You know, if you've watched hours of my content, what does that work out to be 10 cents an hour or one cent an hour? So I'm not complaining. Thank you for the five dollars, but it's a little weird way to say it. And so I don't know. Maybe that's good. Maybe it's not. Okay. Let's see. We've got a bunch of questions. I answered that one already. Okay. So we're going to do some super chat questions related to, to this topic. We'll start with related to the topic and then we'll move on to others. The first one is what are your thoughts? Yeah. I'm not, sorry, but I got the question. I copied all the questions from the Phoebe chat onto, I've got it here. So don't worry. You don't have to repost the question. I appreciate the five bucks, the five dollars, but you don't have to repost the questions. I've got them here. I copied them over. Thank you anonymous user. We just, I appreciate it. Yeah. So other, others of you who have watched hours of my videos, who would like to contribute five bucks to what I do, you know, in the super chat, I do appreciate it even though, because I know for some of you, five dollars is a lot of money. So I didn't mean to be flippant earlier. What are your thoughts on Chamath? I can't even pronounce his name. He'd liken shorts, shorting stocks to un-American, as we are hoping for company to fail. In my opinion, that is just efficiency. He has some Elon Musk as popularity to him, but I largely view him as a scam artist. Yeah. I mean, that's ridiculous. We want, we don't want unproductive companies. We don't want inefficient companies. We don't want buggy companies to succeed. We want companies that are inefficient, unproductive, badly run, old technologies to lose. We want those companies to free up their capital so that we can put it into the next Amazon, the next Apple, the next Google. And capital is limited. So, you know, if it's captured by dye industries, if it's captured by inefficient managers, if it's captured by any of that, yeah, we want the stock price to go down so that somebody can buy it, break it up, sell the assets, and redeploy them more effectively. Now, if you want a movie, an entertaining movie that is probably the best explanation that I'll ever get in finance in a movie, the best finance movie of all time, which is, it's brilliant and it's accurate. There's nothing in the movie from the perspective of finance that is not true. I mean, I would challenge a little bit of the characters in the movie and how they portrayed. But in terms of the actual content about finance, it's brilliant. And that movie is Other People's Money. Other People's Money is brilliant. The big short, no. Other People's Money, not trading places is awful with regard to finance. Awful. Most movies about finance are awful. But the one movie that is brilliant is Other People's Money. I highly recommend it. I used to use it in my finance classes when I taught finance. Daddy DeVito and look, in the movie, Daddy DeVito is buying up a New England wire and cable in order to break it up and free up its capital. And New England wire and cable makes great cables. Great cables. It's like the Tesla. Great cars. But nobody wants the cables. Nobody wants the cables. Trading places is terrible because trading places assumes you can teach anybody to do finance. Finance is easy, simple, nothing. It's a very anti-finance movie. While I don't like the way DeVito is portrayed. He's portrayed as a somewhat ridiculous character. The actual content of everything DeVito says in the movie about finance is 100% right. And his actions are completely moral. And he points out the immorality of the other side. And yes, you should be saying amen right now. Because when you hear the truth you should say amen. Daddy DeVito said something like that much more effectively at the end of his speech towards the end of the movie. It's a movie with speeches and they're good speeches. Good speeches. So anyway, I think short sellers are heroes. They take real risk I mean heroes in the sense that they're going to make money, but they take real risk in order to make markets more efficient. And one of the things I do is I short stocks in a particular industry with a particular focus primarily to hedge risk. But shorting is not a bad thing. Let's see. Now they ban WSB from Reddit and Discord. I don't know why they ban WSB. I'd have to look into why that happened. We'll get to that later. Later. All right. Wall Street bets, WSB kind of have a occupied Wall Street 2.0 vibe. Yes, but it's worse than occupied. It's a real nihilism. But I got in and got out of GME when it doubled so here's some. Yeah, I mean if you could take advantage of this do it, but be careful. It's better to get in early than late and get out, get out quick and don't regret you only doubled. You could have quadrupled. Anyway, say I doubled. That's great. I'm happy I doubled. So if you're going to play the game get out quick and don't regret staying in until the peak. People who regret go back in and they lose everything. Thank you for all you do and I asked a hedge fund question paying the piper. Thank you. The group took into account market account market information that took a risk against it and won. In the shorts the Fed went for and made a calculation market will adjust to reddit effect. Yeah, but they didn't. The market information is not real. The market information doesn't justify the price at which they're buying. They're buying completely divorced from market info and if the market adjusts to this irrationality, this mob mentality this divergent from fundamental then that means the market will be less efficient. And I don't think the market can adjust because they pounced on a company nobody would have expected and the information maybe justified it going from three and a half dollars a share to four dollars a share. Not three and a half dollars a share to one hundred and thirty four dollars a share. So no, you're trying to make the group out to be far more rational than they really are. Can we recommend recommend finance reading please. I mean I'm going to recommend a random walk down Wall Street. Random Wall down Wall Street. It's an older book and I don't agree with a lot of its philosophical assumptions and context but there's an immense amount of knowledge about markets and about how stock markets work. About how stock markets work. So I highly recommend that you look at look at it. Somebody says GME is at already 300 yeah so from 315 to 300 that just doesn't make any sense and it's not good for the market. It's not good for the market. Now I recommend a bunch of others I meant while I was in California to give you some of those but I generally recommend any book that lays out fundamental analysis what it looks like to look at stocks from the perspective of their earnings their profitability their future cash flows and to discount it to today and look at companies you know so I will you know I will get you a list of books now is not the time it's not coming to me but I will get you a list of books have I done a stock market 101 lecture show I did a course on financial markets which included a big section on the stock market it's called in defense of financial markets it's on YouTube if you go to my playlists under playlists there's a playlist on defense of financial market and there is more than one lecture there on stock markets how they function how they're efficient how they're important what they value is all of that is there so you know you can get that contact would you call the reddit GameStop situation kind of Wall Street Trolling maybe but not really because I mean it's not new that's the other thing about this it's as I told you I told you a story about how I lost a million bucks years and years ago it was a phenomenon and that was on you know a lot of it was happening on Yahoo Chat which was a lot less efficient than than reddit is but it was the same basic phenomenon the same thing happened in Chula Mania Chula Mania and things that happen happen over and over and over again over the years so no I mean I am not I am not a believer that ordinary folks who are not studied finance who are not professional financiers can systematically make money in the stock market I don't believe it I mean sure some people can they get lucky but you think you're smarter than Citadel and the people at Citadel 0.72 who have decades of experience and are off the charts smart and no finance and know how to look at these companies now it's true that a mob can can catch Citadel 0.72 and cause them to lose a lot of money but they can't do it consistently they won't do it consistently and it's it's going to be you know I think a lot of a lot of individual people lose money I mean I remember in 1999 when my finance students will tell me that I don't know anything about finance they were making a fortune and I was wrong in terms of looking at fundamentals and that and then they were all running out of class today trade and came the year 2000 and they lost a fortune they lost everything they made and much much more alright let's see other stuff related to this topic and then I'll go backwards have you chatted with Peter Schiff about building sharing a studio together building a new studio down PR I'll ask him if he's building a studio I hadn't heard that he lives he doesn't live close to me and the question is where he would build the studio but I like having the studio at home I don't want to have to drive to do these I don't have the time I'm super busy I do the nice thing about Peter is his podcast and his professional life go hand in hand I have at least two careers and they don't necessarily go hand in hand and it's going to be very difficult so I'm going to build a home studio in my new home which I'm hoping to I'm hoping to go into you know by the time everything is built out and everything is ready probably May-June will probably start using it maybe earlier maybe April but more likely May-June and but I need to catch up with one of the things that I haven't done in Puerto Rico is caught up with Peter Schiff and hung out a little bit because you know we know each other we're friendly we chat on the phone once in a while but he lives not far from me and we should hang out so I will do that let's see so that's Peter Schiff gamers think they can gamify stocks but forget that they lose that if they lose it will mean game over there will be a lot of misplaced anger when the stock drops yes and when the whole phenomena is crushed and the phenomena will be crushed the phenomena is not healthy it's not good for markets capitalism will flatten them thoughts on a quality specifically ritual you're going to have to be more specific more specific on what you mean and it's not productive for government to be bailing out and helping to keep afloat on productive businesses of course not and that's part of the challenges that we're facing is that the government is pouring money into the economy money it's printing in order to bail out everybody now a lot of it the government caused but the fact that it caused it doesn't mean it should double up on the pain by bailing everybody out do you use options I don't right now but I will be in the near future for hedging purposes not for not for anything else the hedge I'm looking at you know I'm looking at using them as a hedge how do you feel about the monthly fool you know I'm not a big fan I haven't read anything super insightful there I thought they started out pretty well and then they became I don't know just normal stock pushes sometimes interesting articles sometimes not so I'm I don't know I'm not a big fan you know and again I don't I don't think that their publications out that they're going to give you stock tips that are worth anything I mean maybe private newsletters but if everybody can see it online pay no fee to see it then it's not worth anything yeah if you like the show please like it please press the like button it helps with the algorithms it really really does help we've got over 200 people watching and only 70 like 9 likes so please up the likes if we had private exchanges do you think the exchange hosting GME would should have shutdown trading yes good point but yeah I think I'd have to think it through figure out exactly what was going on but if the exchanges were truly private and they're not today the basically extensions of the SCC extension of government then I think so because I think of an exchange got the reputation of an exchange that was easily flooded by reddit types then hedge funds would avoid it and it would lose a lot of commissions so I think an exchange has an incentive a private exchange has an incentive to keep trading rational to keep trading at least at least up in certain boundaries within the range of reflective of reality and exactly how they would do that I don't know I don't have an answer but that's the beauty you would have competition you would have multiple exchanges and the different exchanges would compete with the rules and the exchange that had the best rules would get the most customers most trades and make the most money so he says I'm looking forward to a new podcast me too it's going to be very different and focused really on innovation focused on what do they call it AUK investing right on the great value of technology to human life it will be focused on what are the conditions and environments so it will be focused it won't be philosophical in a sense of it won't be focused on philosophy it won't be focused on ethics although it will have an ethical aspect it will be economics but in business technology oriented we'll talk a lot about a different channel and it will be a lot of interviews with technology technology leaders of course if I can get them to come on my show you said what's happening with GameStop doesn't make sense but sorry have you explained why it happens yeah I explained why it happens it happens because a bunch of kids think they can you know drive up the stock price and use options to do it and and they did it there's enough of them with enough money to be able to short squeeze the short sell so I went through all of this at the beginning of the show maybe you missed it but yes absolutely explain why and it doesn't make any sense because stock prices should be should be connected to reality I don't understand what you mean by define very fine what are you very fine in what context did I say something was very fine and I need to define it so explain to me what very fine is that's moofy asked that let's see other questions around this so yes I explained why it happened in the first part of the show Larry Cutlow's famous line in the former CNBC show free market capitalism is the best road to prosperity he should turn out to be a con yeah but he was always a con one of the reasons he would never have me on he was never have me on is because I would outflank him on the non-capitalist side and he was afraid of that so he only had me on the show once and it was clear that he looked like a non-capitalist when I was on the show and that's not the impression he wanted to give people will you feature Blake Sholes on your new podcast yes he's one of the people I would love to invite so yes let's see when are we getting the Iran Brook ATF can we join BHC I mean I can't market BHC on this show I mean that's that's a no-no SEC will come afterwards I can't say anything about BHG you know Iran Brook ATF it will be it's possible that out of this new podcast venture and it won't just be a podcast there'll be other aspects with articles newsletters it's going to be a non-project that might translate into a product an investable product and if it does then I'll definitely let you know about it to the extent that the SEC allows me to market it and to let people know about it so right now the product that I have I certainly cannot talk about here okay let's see let's see again I don't know what fine very fine means so Mofi if you want to without a super chat if you just want in the chat explain what you're asking about I'd be happy to answer the question how do you fact in fast growth with value investing well you you just factor it into the future cash flow so let's say you believe a business will go to 100% a year of free cash flow that's the cash flow after all expenses and everything taxes and everything is played you project next year it's going to make $100 a year after that $200 a year after that $300 a year after that $400 and you project it out let's say 20 years and you discount it back based on how confident you are that those projections are true based on the you know how risky your projections are and the riskier your projection the higher the discount rate you want to use to bring it back Nathan says GME to a thousand and if Nathan is investing in GME with assumption that it'll be a thousand Nathan is very likely to be one of those suckers that gets caught when this stock plummets plummets that's the danger what are my thoughts on Jim Chenos I don't know Jim Chenos so I apologize but I guess I'm showing my ignorance but there's a bunch of stuff I don't know so if you want to send me a link to something Jim Chenos wrote I'd be happy to look him up and comment on it but I don't know who he is UBI would be a disaster and certainly the United States of America at this point cannot afford UBI Jim Chenos is great in analyzing financials but he's a fool with technology you know famous bear yeah I mean I know bears bears are mostly wrong because stock markets tend to go up he showed a Tesla and lost well we'll see you know shorting as I said is risky business and the question is what happens in the long run was the short right timing is everything and timing is almost impossible to get right almost impossible to get right does buying broad based index funds still make sense in this market I don't know I mean I'm very very reluctant here to give you advice about what makes sense and what doesn't make sense particularly in this market I mean I have my investment portfolio outside of my professional investing is in broad based index funds tilted towards cheaper stocks tilted toward value because I think that I think that stocks like Tesla don't make any sense and I don't want to be in Tesla so I tilt my portfolio towards stocks I understand and stocks that I think are potentially undervalued I would be happy to buy technology stocks innovative stocks stocks that are going to grow where they're underlying companies and grow exponentially but I want to do that at valuations that make sense to me you know the valuations make sense to you good luck but what makes sense to you let's say that's that okay alright I think that's all the questions I have on this topic so I'm going to run down some questions that are not related to the topic Jordan Peterson is a great example of having a high IQ while simultaneously being completely irrational and detached from reality yeah but there are lots of people like that I mean a lot of people who you hate even more than Jordan Peterson you know Norm Chomsky who I think is one of the really truly horrible thinkers in the world has got a very high IQ and I think Sam Hamas is in a huge IQ and I agree with some things he said but other things he's completely detached from reality as well IQ is no reflection of your ability to connect to reality one other Jordan Peterson question I had here that shows so you couldn't ask but if Jordan Peterson believes romantic love is only about reproduction how can he explain the love between me and my boyfriend and other same-sex couples I don't know I don't know I mean I think this is where he's a conservative I think he thinks you're some kind of aberration some kind of in a sense perversion you know you're a evolutionary joke right and I think that's what he thinks so I don't but I shouldn't put words into his mouth I don't know but if you follow this on that's what it looks like somebody else says great show on Jordan Peterson romance it's unfortunate that he's influencing a generation of men to equate happiness with delusion I agree completely I think he's doing massive you know massive damage to a whole generation of young men in particular how can there be an economic collapse under Joe Biden how can the government keep giving hundreds of millions of people thousands of dollars a week in unemployment and will paying rent being optional become the new normal it it might but then these buildings are going to collapse these buildings are going to go nowhere right and you're going to see it as a disaster so there is a good chance there's going to be an economic collapse under Joe Biden certainly there's going to be slow economic growth and potentially stagflation under Joe Biden but I think there would have been slow economic growth under Trump I don't think there is anybody in the political map today that would actually do the things that are necessary to establish high economic growth with Joe Biden and with Trump there was a real possibility of collapse remember all the stimulus packages were supported by Trump including the $2,000 check to individuals so the printing of money and distributing of money non-stop unemployment benefits and all that is bipartisan at least with Trumpists so yes I think we're heading towards a major economic disaster but I've given up and trying to time it I don't do the Peter Schiff thing where I say it's going to happen and I know it's going to happen I don't know when it's going to happen but you have to pay the piper you have to pay the piper Governor Gnomes this is South Dakota banned on abortions due to Down syndrome made her much uglier she implied people are evil for not choosing to be caretakers for life yes I agree completely but banning abortions for Down syndrome is evil, downright evil I mean I think people thought that she would be a good presidential candidate in four years and just on the basis of this just on the basis of this I would never vote for that is ugly and evil and horrible of course you should be able to abort a child that is a Down syndrome child or any other kind of physical or mental deformities you should be able to abort in any case but certainly in cases like that and I think it shows a hatred of human life it shows a perspective on sacrifice and suffering that is just that's what life is for it's duty abort a fetus, not a child we're talking about aborting a fetus I shouldn't have said a child aborting a fetus anyway what else 12 rules for life, Objectivist edition I mean I did a series of your on book shows of the 8 basically 8 virtues 7 virtues which constitutes the Objectivist rules for life it's not 12 but it's Objectivist rules for life so if you're interested in that content definitely go and listen to it it's on my channel I think I made a playlist of it if not I will do so tonight and maybe I should call it Objectivist rules for rules for life because they are so that is Objectivist I haven't written a book I will write a book but I certainly have done it on the podcast so please go and look at it there okay couldn't we pay the piper through slow growth or do you think evident collapse is necessary I don't know we certainly could pay the piper through slow growth there's no question about that and I think that is the most likely scenario in the short run but there are no guarantees things are so irrational right now so many people and I think the Reddit stuff is another expression of that there's so much rationality in the world in which we live right now that you know collapse is very possible another Jordan Peterson why are people like Jordan Peterson so popular and ran not so popular do you think it's a reflection of sense of life yeah I think it's a reflection of sense of life of a conservative public I think it's also the fact that Jordan Peterson doesn't challenge you he's conventional he's mainstream what does he tell you to make your bed Einran tells you to think Einran tells you not to believe your elders Peterson tells you everything your parents told you was fine Einran tells you to challenge all the so-called established truth Jordan Peterson tells you that all the established truths are good you just need to be more diligent about your conservatism about following tradition I'm getting to all the questions I'm sorry I'm going out of order which is not fair but I will I will get back to them I was trying to get rid of all the Jordan Peterson questions at once so yeah Jordan is very mainstream and conventional my mother and my father told me to clean my bed clean my room and make my bed when I was kid now maybe your parents didn't and you need to be told that but that's deep it's not deep it's not deep right it's not deep but it's perceived as deep in a culture that doesn't want to think in a culture that doesn't want real depth that doesn't want to be really challenged that doesn't want to be told they really responsible for their lives they want to be told that they're somewhat responsible but their genes determine who they will fall in love with falling in love is good to begin with and that's Peterson so you know evolutionary psychology is very convenient for these people because it absolve them from ultimate responsibility A is a Tesla is a tech company not a car company Tesla is a general solution customers feed the data Waymo etc. only worked geofenced innovation I'm great with innovation and Tesla is a revolutionary car Tesla is a general solution you explain to me where the kind of revenue comes to justify the valuations particularly where ultimately Tesla is behind the curve when it comes to self-driving car technology it's behind a number of other companies that are more have more advanced self-driving technology and if it doesn't have a car if it's car is not the most important car out there then it won't have the data and it won't have anything to sell so where the revenues come from and even if you believe they will dominate what's it a general solution to what's it a general solution to it's not it's way behind the technology is coming out of Israel that are far more sophisticated in self-driving and providing the data to be able to drive the car far more sophisticated and BMW has licensed these you think Tesla is not going to have massive competition from everybody but what is it a general solution to are the other battery companies is Tesla light years ahead of other battery companies is it likely that there might be other battery companies that beat Tesla I've driven a Tesla it's wonderful to drive I don't like it particularly but it's wonderful to drive so what it's a subsidized car it's a government car why I mean I have no desire for Tesla given that the government is subsidizing it because it couldn't survive in a marketplace without the government so but on the basis it doesn't matter that it could survive in a marketplace without the government that's right nothing matters facts, reality finance, numbers dollars none of that matters none of that matters so what is the solution exactly for I mean even Elon Musk thinks the valuation of Tesla is absurd and they are you know again if it's a car company it's margins are going to be very thin if it's a data company it's going to have to have a lot of cars to accumulate the data and there are a lot of other companies that are selling a lot of cars that will accumulate data and compete with them so it's not clear that data is going to be more valuable and the margins of the data are going to be that valuable is it a battery company well there are going to be lots of people producing batteries in the future and providing them and getting the data and providing that data to the market so I'm not saying Tesla is worthless Tesla is a great company and it's really interesting technology and it's doing amazing things and Elon Musk is clearly a genius but is it worth the price that it's at that is a completely different question than it is a good company the two are not necessarily related the two are not necessarily related you're saying they have 5 billion miles and going is 5 billion a lot or is it a little I don't know Tesla will produce hundreds of billions in free cash flow in the next 5 years you remind me of the people who told me Trump will win and mark my words I'm marking your words can we meet back here in 5 years and one of us will tell the other I told you so I'm game I'm even willing to put some money on it all right hundreds of billions of dollars in free cash flow in the next 5 years all right we will see here's a 499 to help you towards a cocktail with Peter when you meet up what you do thank you I appreciate that I still haven't figured out what you're talking about how do you factor in fast growth with value investing I answered that you adjust the numbers to fast growth in the context of fictional story is it okay for an AI robot to sacrifice himself the iron giant terminated to etc yes but it's not clear what sacrifice means does the robot have does the robot have free will have purpose in life we'd have to think about the psychology and the morality of a robot with AI and free will if it doesn't have free will then of course it is and in general you know given the damage terminated I mean terminated to does the right thing but there's a whole analysis you would have to do of the movie and he chooses to do it and he chooses to do it partially because he understands the horrific nature of his own technology and why his own technology needs to be destroyed so it's more than just killing himself because it's not clear it's sacrifice he learns to value human beings he learns to value the world and he realizes the world cannot exist with his technology and therefore he must destroy it and therefore he kills himself did you know Stephen Pica is about to release a book on rationality he did not might be a good chance to have it on to talk about his view of rationality versus ours yes I agree I'd love to get Stephen Pica on given Taiwan's performance would you recommend indexes from there yes probably I mean I don't again I don't know what the value of the indexes is I don't know if it's already priced you'd have to think about if it's priced or not and I generally believe in diversification so having some Taiwan exposure is probably good yeah somebody says love T2 yeah T2 is in my view a really really good movie in a sense that it's I think it's got a great philosophical theme it's beautifully made it's really good it's well acted it's very suspenseful particularly for the time and it's again it's got a real theme I mean it's it's it deals directly with the issue of free will and it comes out clearly on the side of pro-free will in a strong way alright $20 question it's commented distinguished sex as male or female based on genitals and gender as how one feels internally as male female non-binary etc is gender a legitimate concept or is it an anti-concept aimed at destroying sex I don't know I haven't thought about it but it's probably a anti-concept aimed at destroying sex at the same time the way it's used today at the same time there is something going on with transgender people there's something going on psychologically and maybe biologically in terms of hormones and other things and that has to see studied and figure out what exactly is going on there and I think I think the science is just not there and it doesn't know and I think today scientists are too afraid to engage with the issue because they'll be canceled so they can't honestly engaged in the question of gender and sex because of cancel culture but I think that it probably is an anti-concept probably motivated by again by political correctness I think that came out right but a test as Q4 gap net income minus subsidies is negative 131 million 17 years of losing money this year yeah I know but it's going to make hundreds of billions of dollars minus subsidies in the next five years how do we know that we just know it because even a lawn doesn't think that Elon Musk but we have people on the chat here who know more about Tesla than Elon Musk and they know what it's worth what corporation company in history do you think has contributed the most to the benefit of an individual the benefit of us as individuals probably standard oil probably JD Rockefeller I mean if you think about oil is powered what oil is made possible if you think about all the products that are made of oil if you think about how much cheaper he made oil the internal combustion engine plastics everything else that came out of it I think that it's there's no question that that corporation probably had a greatest impact on individual life more than any other company in history and you know at this point we're getting to the point where you know today it's probably Amazon but it's hard to tell because but yeah Amazon is huge in sort of changing people's lives and their contributions and then of course you know yep alright if Fed says is no chance of inflation in the next decade could they be wrong do they know any errors in their analysis yeah the Fed's always wrong when has the Fed been right is the question I mean they use bogus economic models they a central plan is concerned the central plan is no did you think they knew that there was going to be inflation in the 70s when they were doing what they did in the 60s do you think they knew they were going to drive the economy into a great recession a great depression when they did what they did in the late 20s and early 30s do you think the Fed knew what they were doing when they drove the economy into the great recession in 2008 well behavior from 2003 to 2008 drove the economy into a great recession the idea that the Fed knows what it's doing is completely bizarre it's like thinking that you know that central planning works and it doesn't doesn't work if you like the show if you like the show if you get value from the show if you like it right there you can also contribute to the show at your onbookshow.com please subscribe there are probably a lot of people listening to the show who are not subscribers please subscribe to the show you can subscribe to the show press the bell and then you get notified every time I'm on live we'd love to see an increase in subscribers as a result of the show so subscribe like share we should have over 200 likes and of course if you want to support the show value for value then you can do so on your onbookshow.com slash support you can do so on patreon on subscribe star and right here on the super chat on locals as well Dave Rubin's locals but the best place to support the show is your onbookshow.com slash support where does motivation comes from motivation comes from your choices motivation comes from your values the clearer you are on what your values are the clearer you are on what's important to you in life and what is important for your life not just emotionally what I like I like Ferraris or whatever but what is important for your life what will contribute the most to your life what will make you happier the clearer you are on it and the clearer you are on the need to pursue your values to achieve your values and how that can make can make your life great fabulous amazing that's where motivation will come from once you understand that fully and fully integrate that alright we're on spitting straight facts right now I'm not sure what we're talking about alright thank you everybody thanks for listening sorry we had the dropped show right in the middle there we'll splice it together and get a new one out and no you see all the investors haven't made enough money to be able to afford a Tesla sorry I had to do that they're making so much money in the market they don't want to take it out in order to buy a Tesla they want to just keep the money multiplying thanks everybody and we will know about Tesla one way or the other probably in the next year or so so we will find out if I was right or if I was wrong and I'm fine if I was wrong you know if you guys make a lot of money on Tesla and if Tesla keeps going up all the power to you thanks everybody have a great night I'll see you on Saturday Saturday at 11am eastern time Saturday at 11am eastern time