WEBVTT - Think, Innovate, Organize! 0:00:02.279 --> 0:00:06.600 Broadcasting live from the Abraham Lincoln Radio Studio, the George 0:00:06.640 --> 0:00:11.200 Washington Broadcast Center, Jack Armstrong and Show, Katty arm Strong 0:00:11.240 --> 0:00:12.960 and Getty and he. 0:00:15.800 --> 0:00:29.040 Armstrong and Getty. Hard to believe that a little company 0:00:29.200 --> 0:00:35.000 that started in a warehouse in El Segundo is now UH. 0:00:36.640 --> 0:00:41.320 Is now is not going public for the it was 0:00:41.600 --> 0:00:44.519 with the largest ipo that ever. 0:00:45.640 --> 0:00:49.400 That was not his best work. Elon was talking about 0:00:49.479 --> 0:00:53.200 his ipo, which debut on Friday and searched past two 0:00:53.200 --> 0:00:57.200 trillion dollars on its debut, and people who got in 0:00:57.280 --> 0:00:59.280 and got out at the right time made some money. 0:00:59.280 --> 0:01:01.800 It was up nighte teen percent from the ipo price 0:01:03.000 --> 0:01:05.720 later in the day. But you know, these things make 0:01:05.800 --> 0:01:08.360 such a splash when they happen in the news, These 0:01:08.360 --> 0:01:14.679 big IPOs SpaceX did andthropics going to UH happens chat 0:01:14.720 --> 0:01:17.520 GPT will be a big one open AI and whether 0:01:17.600 --> 0:01:19.119 or not we should get involved in them is always 0:01:19.160 --> 0:01:19.720 a question to me. 0:01:20.360 --> 0:01:22.320 Yeah, I think a lot of folks have only a 0:01:22.400 --> 0:01:25.440 vague idea of what happened and what it all means. 0:01:25.520 --> 0:01:27.640 So to answer some of those questions, we turned to 0:01:28.120 --> 0:01:32.280 Stephen Kates, a finance expert with Bankrate Dot com Stephen, welcome, 0:01:32.319 --> 0:01:32.679 how are you. 0:01:33.920 --> 0:01:35.440 I'm doing good, Thanks for having me. 0:01:35.600 --> 0:01:37.360 That is the question, isn't it what happened and what 0:01:37.400 --> 0:01:37.880 does it mean? 0:01:37.920 --> 0:01:42.920 Tell us, Well, what happened was SpaceX went public. The 0:01:42.959 --> 0:01:46.160 IPO price was one hundred and thirty five dollars. So 0:01:46.200 --> 0:01:49.560 that's the price that anybody who applied to try to 0:01:49.560 --> 0:01:53.040 get access to those IPO shares, that's the price that 0:01:53.080 --> 0:01:57.440 they got. They would all be, you know, in the 0:01:57.480 --> 0:02:00.440 money here. It's currently trading for about a hundred seventy 0:02:00.440 --> 0:02:04.440 five dollars, so we're roughly about thirty percent higher than 0:02:04.440 --> 0:02:07.000 that IPO price. So that's a good thing for anybody 0:02:07.000 --> 0:02:10.280 who did get that for anybody who didn't but wants 0:02:10.320 --> 0:02:13.320 to get in or is thinking about it, you know, 0:02:13.520 --> 0:02:17.480 that's a different calculus because now you're buying again thirty 0:02:17.480 --> 0:02:19.920 percent higher than that IPO price, and you have to 0:02:20.000 --> 0:02:23.560 determine do you think it's going higher over what timeline 0:02:24.400 --> 0:02:27.359 and how much do you expect to actually profit? 0:02:27.560 --> 0:02:30.160 So can anybody invest now? You can jump in now 0:02:30.160 --> 0:02:31.519 if you want, anybody can invest. 0:02:31.960 --> 0:02:34.040 You can go out there, you can buy as many 0:02:34.040 --> 0:02:36.560 shares as you can find out on the open market. 0:02:36.720 --> 0:02:38.880 So I was looking at a chart on Friday because 0:02:38.919 --> 0:02:40.600 you know, there's so much talk about this on Friday, 0:02:40.639 --> 0:02:43.240 and it looks like it's pretty all over the place 0:02:43.280 --> 0:02:46.160 on these really big IPOs when they debut, whether a 0:02:46.240 --> 0:02:48.440 week later they're up or down or flat. 0:02:48.280 --> 0:02:51.920 Right, Yeah, I mean there's a lot of volatility with 0:02:52.040 --> 0:02:56.639 IPOs again because you know, these companies coming from private market, 0:02:57.160 --> 0:03:01.520 there's a lot less transparency, a lot less reporting on that, 0:03:01.639 --> 0:03:05.720 so you know, people can get into a florri of activity, 0:03:06.040 --> 0:03:08.600 you know, wanting to get involved, and then some sell. 0:03:08.600 --> 0:03:14.720 And I I had serious full mo is what I had? Yeah, Uh, 0:03:15.120 --> 0:03:15.840 just a lot of. 0:03:15.840 --> 0:03:16.560 People get that. 0:03:17.280 --> 0:03:19.440 I think the important thing that people need to understand 0:03:19.520 --> 0:03:22.920 is that for especially for large IPOs and SpaceX is 0:03:23.000 --> 0:03:25.120 one of the largest there has ever been, and the 0:03:25.240 --> 0:03:29.680 valuation is extremely high relative to some of the fundamental 0:03:29.760 --> 0:03:33.560 values like revenue and most large IPOs. You can take 0:03:33.560 --> 0:03:41.560 your facebooks, Ali Baba's you know all snap point Base, Robinhood, 0:03:41.600 --> 0:03:45.480 you name it. Uh, there's typically a fifty percent draw 0:03:45.520 --> 0:03:47.200 down in the first twelve months for some of the 0:03:47.320 --> 0:03:51.360 large IPOs. So that's real. That is, you know, the 0:03:51.360 --> 0:03:57.560 the median and average draw down from U takes a trough. Uh, 0:03:57.600 --> 0:03:59.920 you know, within the first twelve months. So that's a reality. 0:04:00.040 --> 0:04:01.960 If you're thinking about wanting to buy this, you need 0:04:01.960 --> 0:04:03.840 to recognize that you either want to have a long 0:04:04.000 --> 0:04:06.840 holding period or you may want to wait for the 0:04:06.920 --> 0:04:07.760 right price. 0:04:07.960 --> 0:04:09.520 Because you're betting against history. 0:04:09.600 --> 0:04:11.280 Joe, Joe's got a real question. I got a dumb 0:04:11.320 --> 0:04:13.680 guy question. Is this the sort of Are these big 0:04:13.680 --> 0:04:16.920 IPOs like this the sort of stuff that us dumb 0:04:16.960 --> 0:04:20.880 guys get into and like real investors, smart investors stay 0:04:20.880 --> 0:04:25.520 away from or not? I would not seems like dumb 0:04:25.520 --> 0:04:27.000 guy baits. It seems like the sort of thing you 0:04:27.080 --> 0:04:31.240 lure me in on. Well, I wouldn't say. 0:04:31.360 --> 0:04:33.360 I'm not going to say that anybody's word into these things. 0:04:33.360 --> 0:04:35.800 I think that the excitement, you know, is contagious. People 0:04:35.880 --> 0:04:37.280 like to be involved in these things. I mean, it's 0:04:37.320 --> 0:04:38.880 fun to be involved in these things. There's nothing wrong 0:04:38.920 --> 0:04:41.719 with that. I think it's a position size in question. 0:04:42.080 --> 0:04:45.240 If you try to put fifty percent of your net 0:04:45.279 --> 0:04:49.080 worth into an IPO, well then you're truly gambling because 0:04:49.120 --> 0:04:51.839 you don't really know what's going on with that company. 0:04:51.880 --> 0:04:55.240 You simply, as an average investor, have no access to 0:04:55.279 --> 0:04:59.320 information on what's really going on in that company. You're 0:04:59.360 --> 0:05:03.359 taking the word of the company at face value, and 0:05:03.440 --> 0:05:05.640 you can't always do that. Now, if you drop in 0:05:05.680 --> 0:05:08.400 a couple percentage points of your portfolio into this or 0:05:08.440 --> 0:05:12.400 any other IPO, go for it. That's your prerogative. That's 0:05:12.480 --> 0:05:16.799 not an unsafe position size. But you should never put 0:05:16.880 --> 0:05:19.160 money into something like this that you can't. 0:05:18.920 --> 0:05:23.200 Afford to lose. So, Stephen, this would probably require thousands 0:05:23.240 --> 0:05:25.919 of words to answer completely. But I've been reading a 0:05:25.920 --> 0:05:30.200 lot about how space is truly Captain Kirk the next 0:05:30.240 --> 0:05:37.120 frontier and also vastly yeah for manufacturing and technology and 0:05:37.120 --> 0:05:42.120 all sorts of amazing stuff having you know, you know, 0:05:42.160 --> 0:05:46.320 let's agree on that. To what extent is the skyrocketing 0:05:46.320 --> 0:05:52.560 price and the skyrocketing evaluation of SpaceX unmored to mathematics. 0:05:52.680 --> 0:05:56.000 Is it just excitement? It's a big name of how 0:05:56.000 --> 0:05:56.800 do you read all of that? 0:05:58.480 --> 0:06:00.919 There's a lot of excitement. Now, I'm not an engineer, 0:06:01.160 --> 0:06:03.960 I'm not an aerospace engineer. I'm not any kind of 0:06:03.960 --> 0:06:09.240 an engineer. So the capability for a company like SpaceX 0:06:09.320 --> 0:06:12.320 or any other to do the kind of things that 0:06:12.320 --> 0:06:17.000 they've talked about having, you know, space data centers, doing 0:06:17.120 --> 0:06:20.679 micro chip manufacturing in space, doing you know, a trip 0:06:20.720 --> 0:06:23.440 to Mars? Is that something that can be done in 0:06:23.520 --> 0:06:26.840 five years or fifty years? I have no idea, but 0:06:26.920 --> 0:06:31.279 nobody else does either, and it, you know, to compare 0:06:31.360 --> 0:06:33.640 sort of how dislocated the valuation is. 0:06:35.480 --> 0:06:36.320 I'll put it this way. 0:06:36.720 --> 0:06:40.560 SpaceX is valued like Amazon but earns revenue like Macy's. 0:06:42.520 --> 0:06:44.920 Wow, let's bottom line it. How much did you put 0:06:44.960 --> 0:06:51.599 in zero? Okay, in fact in the idea? 0:06:52.200 --> 0:06:56.039 So I will tell you that any anybody who's going 0:06:56.120 --> 0:06:59.080 to be owning an index fund of the next year 0:07:01.080 --> 0:07:06.840 NASDAK you know specifically very soon will include some SpaceX shares, Yes, 0:07:06.920 --> 0:07:08.800 and P five hundred. It's going to be about twelve 0:07:08.839 --> 0:07:11.760 months from now, but it will likely get included. But 0:07:12.000 --> 0:07:14.120 the rules you know for those things are going to 0:07:14.160 --> 0:07:18.320 allow SpaceX into the indexes earlier than in past ips. 0:07:18.400 --> 0:07:21.400 So you enjoyed just pointing out, you know, like how 0:07:22.720 --> 0:07:25.880 so unknown. I mean, space is vast, but there's just 0:07:25.920 --> 0:07:28.200 so much What are they going to be doing when 0:07:28.440 --> 0:07:32.720 all that sort of stuff that's like a car company 0:07:32.840 --> 0:07:35.960 compared to these AI companies though? Is that I mean, 0:07:36.280 --> 0:07:40.400 like a solid we make bricks compared to these AI 0:07:40.440 --> 0:07:42.880 because who has any idea what these AI companies are 0:07:42.920 --> 0:07:45.640 going to be worth or making or doing and there 0:07:45.680 --> 0:07:47.800 with their IPOs are going to be really nuts, aren't they. 0:07:48.880 --> 0:07:52.600 Well it's similar, I mean, space X their financials are 0:07:52.840 --> 0:07:57.400 far more transparent than Anthropic or open AI. We know 0:07:57.520 --> 0:08:00.640 more about SpaceX and and the businesses that that are 0:08:00.680 --> 0:08:04.800 involved in that. You know, they're X formerly Twitter, you know, 0:08:05.000 --> 0:08:07.760 that was very clear what the financials looked like at 0:08:07.760 --> 0:08:12.640 one point for that, the you know, XAI there's more 0:08:12.680 --> 0:08:15.840 known about that, uh, you know, even even the uh, 0:08:15.960 --> 0:08:18.720 you know, the segment of starlink. There's a lot known 0:08:18.720 --> 0:08:21.800 about those things. And coming into this i PO, people 0:08:21.880 --> 0:08:25.960 could parse those numbers more easily. With open AI and Anthropic, 0:08:26.360 --> 0:08:29.920 it's very opaque. We don't really know much about these 0:08:29.960 --> 0:08:32.000 We know that they're growing fast, we know that they 0:08:32.040 --> 0:08:35.840 are deeply, deeply unprofitable, but a lot of the revenue 0:08:35.920 --> 0:08:41.720 numbers and the performance is muddy. It's annualized run rate 0:08:41.800 --> 0:08:44.560 numbers where they're saying that you know, we're we're doing 0:08:44.640 --> 0:08:48.960 twenty or thirty billion dollars in annualized run rate, which 0:08:49.040 --> 0:08:52.319 means that you know, on a high growth rate, that's accelerating, 0:08:52.320 --> 0:08:55.560 which is great, but it means that it kind of 0:08:55.679 --> 0:08:58.319 is fuzzy numbers because what they actually earned over the 0:08:58.400 --> 0:09:01.040 last twelve months is going to be significally lower than 0:09:01.080 --> 0:09:06.320 these run rate numbers. You analized run rate, meaning that 0:09:06.400 --> 0:09:08.840 you know, if you took a single month and you 0:09:08.920 --> 0:09:12.280 multiply it by twelve, you're saying that what we earned 0:09:12.360 --> 0:09:16.520 let's say in December, if we multiply that by twelve, 0:09:16.600 --> 0:09:19.840 look at that was a twelve month representation. That's what 0:09:19.880 --> 0:09:21.920 we might earn over the next twelve months. And so 0:09:22.600 --> 0:09:25.120 you can you can make things look really nice that way. 0:09:25.240 --> 0:09:31.720 You know, if you if I annualized my Christmas stockings 0:09:32.280 --> 0:09:35.200 on an annualized run rate basis based on what I 0:09:35.240 --> 0:09:38.199 got in December, well I'm getting twelve stockings per year, 0:09:38.760 --> 0:09:42.520 but I don't. So you know, of open AI or 0:09:42.559 --> 0:09:47.000 Anthropic earned a billion dollars in December, they could say 0:09:47.040 --> 0:09:50.079 we have an annualized run rate of twelve billion dollars 0:09:50.160 --> 0:09:55.400 per year even if they earned maybe two billion dollars 0:09:55.559 --> 0:09:58.960 in the past year, because they grew it significantly in December, 0:09:59.160 --> 0:10:02.960 which is great. Growth rate that's high, is amazing, but 0:10:03.000 --> 0:10:04.800 it doesn't tell you what they actually earned over the 0:10:04.840 --> 0:10:06.959 past couple months. It just tells you what they could 0:10:07.000 --> 0:10:09.840 earn based on a single data point. 0:10:10.360 --> 0:10:13.520 Final question for Stephen Kates of bankrate dot com. Stephen, 0:10:13.559 --> 0:10:17.480 are you using AI agents? Say in your work these days? 0:10:19.080 --> 0:10:21.319 I haven't used AI agents, but I do use AI. 0:10:21.480 --> 0:10:24.640 Do use the l l ms to do different analysis, 0:10:24.679 --> 0:10:28.839 and you know, sometimes even just bounce arguments off to 0:10:29.120 --> 0:10:31.440 try to make sure that you know those things are solid. 0:10:32.040 --> 0:10:36.439 But a lot of what I do is not looking at, 0:10:36.760 --> 0:10:40.720 you know, publicly available data as much as as it 0:10:40.760 --> 0:10:43.880 is analyzing things as they come out. So I can't 0:10:43.920 --> 0:10:46.000 really get an agent to do any better than I 0:10:46.040 --> 0:10:49.679 can to go read the CPI report. I'm looking at 0:10:49.679 --> 0:10:52.199 it as it comes out. The AI agent can't really 0:10:52.280 --> 0:10:53.000 do it any faster. 0:10:53.559 --> 0:10:57.079 So you're suggesting a strong don't buy when Anthropic has 0:10:57.080 --> 0:10:59.839 their IPO, I get it. Thank you saw through your code. 0:11:00.200 --> 0:11:03.440 I got it, wink No. Stephen katesbankreat dot Com, Stephen, 0:11:03.440 --> 0:11:06.120 good to talk to you. Thank you my pleasure. 0:11:06.960 --> 0:11:10.040 So what I liked about that is that dealed with 0:11:10.800 --> 0:11:14.320 dealed with dealt with the fomo that I think a 0:11:14.360 --> 0:11:17.680 lot of people have he didn't invest a single dollar. 0:11:18.840 --> 0:11:23.920 These things get so much attention leading up to their 0:11:24.160 --> 0:11:29.319 announcement and then the day of and everything like that. Apparently, 0:11:29.360 --> 0:11:32.600 feel free is like you're just being like a grown up, 0:11:33.080 --> 0:11:36.800 you know, medium risk investor, feel free to just ignore it. 0:11:36.800 --> 0:11:38.920 Sounds like to me, what do you think? 0:11:40.480 --> 0:11:42.880 Right? Yeah, especially because and I was gonna I want 0:11:42.880 --> 0:11:46.320 to confirm this because I'm absolutely not an expert. I'm 0:11:46.360 --> 0:11:50.640 just a guy who's curious about it. How IPOs work 0:11:51.200 --> 0:11:59.480 sometimes is they're not immediately to the public. The underwriters 0:11:59.520 --> 0:12:01.679 and the company you agree on the final offer price 0:12:01.720 --> 0:12:07.680 for the shares and allocate them to select investors, and 0:12:07.760 --> 0:12:10.840 the next morning the stock begins trading on the New 0:12:10.920 --> 0:12:13.520 York Stock Exchange or the NASDAC or whatever. And at 0:12:13.600 --> 0:12:16.360 that point, everyday retail investors can buy and sell the 0:12:16.360 --> 0:12:19.319 stock on the open market. But there's a layer before 0:12:19.360 --> 0:12:21.920 we even get a shot at it of the well connected, right, 0:12:21.920 --> 0:12:24.360 I'd like to be in that layer, please, But. 0:12:24.400 --> 0:12:26.400 As I was looking at the charts on Friday, I 0:12:26.400 --> 0:12:28.640 forget who had that the Wall Street Journal, I guess, 0:12:28.679 --> 0:12:33.000 showing that it's just as likely to stay flat or 0:12:33.040 --> 0:12:35.720 go down as go up. So I mean there's there's 0:12:35.760 --> 0:12:38.920 no rhyme or reason really to the last half dozen 0:12:39.400 --> 0:12:42.560 biggest IPOs that have ever been seen because we keep 0:12:42.600 --> 0:12:48.400 setting records. Yeah, okay, well I'm happy to hear that. That. 0:12:49.200 --> 0:12:51.280 And if you're listening and you didn't get involved, either, 0:12:51.559 --> 0:12:54.000 you're not an idiot. You didn't you didn't miss your 0:12:54.040 --> 0:12:56.160 great opportunity or whatever. 0:12:57.120 --> 0:13:00.280 Right, No, No, it's all about the long term anyway, 0:13:00.400 --> 0:13:03.480 unless you're a really really good day trader, and we're not. 0:13:03.960 --> 0:13:09.520 But we should deal with this concept that Elon must 0:13:09.559 --> 0:13:11.959 becoming a trillionaire somehow screwed the rest of us. 0:13:12.200 --> 0:13:17.079 That's nuts, idiotic, idiotic, terrible And if you think that's true, 0:13:17.120 --> 0:13:19.280 stay tuned. We're going to straighten out before you make 0:13:19.280 --> 0:13:20.480 a bigger fool of yourself. 0:13:21.400 --> 0:13:25.360 Okay, that's next. 0:13:30.559 --> 0:13:34.559 Those who have been blessed the most, who have disproportionately 0:13:34.880 --> 0:13:39.240 attracted by whatever skill, more and more from the national wealth, 0:13:39.360 --> 0:13:41.560 they're gonna have to share more of that. 0:13:41.559 --> 0:13:47.880 That is the four term governor of California, two terms 0:13:47.920 --> 0:13:50.360 when he was the youngest governor ever ever of California, 0:13:50.400 --> 0:13:52.880 then two terms when he is the oldest governor of California, 0:13:53.400 --> 0:13:56.760 who believes there's a set amount of wealth out there 0:13:57.320 --> 0:14:01.920 and rich people have disproportion extracted from it. 0:14:02.960 --> 0:14:05.280 That is not only as wrong as wrong can be, 0:14:05.440 --> 0:14:11.120 it is a poisonous, diseased understanding of economics misunderstanding. 0:14:11.160 --> 0:14:13.160 Now, whether or not Jerry Brown actually believed that or 0:14:13.240 --> 0:14:15.360 was just pandering to people, I don't know. I also 0:14:15.440 --> 0:14:18.160 don't know this for instance. I mean, I was watching 0:14:18.200 --> 0:14:23.320 this stuff unfold online and including around one tweet that 0:14:23.360 --> 0:14:25.200 I put out there, and people, a lot of you 0:14:25.760 --> 0:14:28.360 getting in arguments on our Twitter feed, which I appreciate. 0:14:28.400 --> 0:14:30.640 You smart people who stood up for the free market 0:14:30.960 --> 0:14:34.200 and common sense. I really appreciate that. But here's an example. 0:14:34.400 --> 0:14:37.560 And I don't know this woman, but she has several 0:14:37.680 --> 0:14:41.400 hundred thousand followers and is involved in some organization. She 0:14:41.480 --> 0:14:44.600 tweeted out the idea that Elon Musk worked harder than 0:14:44.640 --> 0:14:47.600 every other personal live who has ever lived is very 0:14:47.640 --> 0:14:50.360 stupid and immature in a fairy tale wake up, he's 0:14:50.440 --> 0:14:51.040 robbing us. 0:14:52.440 --> 0:14:56.640 Wow, speaking of stupid and immature, Yeah, nobody said he 0:14:56.680 --> 0:14:58.880 worked harder. He works very hard, but no, he created 0:14:58.920 --> 0:15:02.320 more value. You see, That's the way it works. 0:15:03.040 --> 0:15:08.240 And so the common refrain from a lot of people 0:15:08.600 --> 0:15:14.960 was about the They lumped different things together that are 0:15:15.000 --> 0:15:19.520 completely different things. Tax breaks like around you know, electric 0:15:19.600 --> 0:15:24.200 cars that Democrats pushed, you know that helped this car company, 0:15:24.520 --> 0:15:30.680 along with government contracts that the government signed with SpaceX. 0:15:30.160 --> 0:15:32.680 Among other competitive bidding exactly. 0:15:32.800 --> 0:15:35.440 Yeah, And the government decided to do it because space 0:15:35.600 --> 0:15:38.080 X could do it cheaper than NASA was doing. You 0:15:38.160 --> 0:15:41.000 were gonna pay more for it if NASA did for it. 0:15:41.320 --> 0:15:44.440 Did it anyway, Just all of these things being lumped 0:15:44.440 --> 0:15:48.280 together is we gave this money, We taxpayers gave this 0:15:48.400 --> 0:15:50.240 trillion dollars to Elon, which is. 0:15:50.320 --> 0:15:54.840 Just not right. Yeah, yeah, and just her whole premise 0:15:55.000 --> 0:16:00.760 is wrong. The wealthy don't hoard the money and they 0:16:00.760 --> 0:16:03.320 don't spend all of it. They couldn't more than he 0:16:03.360 --> 0:16:07.800 could ever spend a lifetime. Yes, that's correct. So real 0:16:07.840 --> 0:16:12.520 wealth accumulation comes from productive investment. You deploy capital into 0:16:12.520 --> 0:16:16.200 businesses and technologies, ventures of whatever sort you think are 0:16:16.240 --> 0:16:20.080 going to generate returns because they create value for others. 0:16:20.440 --> 0:16:24.560 If they don't give more value than they cost as 0:16:24.560 --> 0:16:28.080 perceived by the buyers, they fail and that money just 0:16:28.160 --> 0:16:29.920 goes to the people who are working to the business 0:16:30.000 --> 0:16:33.160 or whatever. But it's mutually beneficial. You build companies that 0:16:33.160 --> 0:16:37.080 employ people, lower costs for innovation, expand opportunities, and pull 0:16:37.120 --> 0:16:40.000 people out of poverty. You feed clothes, educate, and medicate 0:16:40.200 --> 0:16:44.440 entire families for generations when you build a successful business. 0:16:44.920 --> 0:16:47.520 The idea that at some point you should stop creating 0:16:47.600 --> 0:16:50.240 value in building businesses that do all those things. Because 0:16:50.280 --> 0:16:53.040 I'm super jealous of how much money you have. On paper, 0:16:53.360 --> 0:16:58.160 You're an idiot. You're an envy ridden I'm sorry, idiot's strong. 0:16:58.200 --> 0:17:02.240 You're a fool. You don't know enough to have an 0:17:02.280 --> 0:17:03.240 intelligent opinion. 0:17:03.680 --> 0:17:08.760 You're letting envy run your brain. Yes, and that's not good. 0:17:08.760 --> 0:17:10.400 I want to talk a little more about this after 0:17:10.440 --> 0:17:13.560 the commercials because I think it's very important. I'm worried 0:17:13.560 --> 0:17:19.120 about a revolution over this sort of thinking. It's crazy. 0:17:19.320 --> 0:17:20.439 Armstrong and getty. 0:17:22.119 --> 0:17:24.320 People at the Babylon be are really funny. I can 0:17:24.359 --> 0:17:27.679 go to that anytime and scroll through their latest headlines 0:17:27.720 --> 0:17:31.000 and always laugh. But this one time, this one made 0:17:31.040 --> 0:17:35.040 me laugh today. Schroding's got to get the name right too. 0:17:35.560 --> 0:17:40.000 Schrodinger's neighbor says thought experiment very interesting, but he'd really 0:17:40.080 --> 0:17:48.040 just like a straight answer on where his cat is okay, great, 0:17:48.359 --> 0:17:49.400 So where's my cat? 0:17:50.840 --> 0:17:51.879 Have you seen the cat? 0:17:54.200 --> 0:17:59.720 Google it? So the Washington Post actually had a peace out. 0:17:59.800 --> 0:18:02.520 This is about the whole Elon Musk becoming a trillionaire 0:18:02.520 --> 0:18:05.320 thing that this there should have been a there should 0:18:05.320 --> 0:18:08.080 be the litmus test, and they should have had everybody 0:18:08.520 --> 0:18:11.800 go on to a government website or something and put 0:18:11.800 --> 0:18:16.280 in their vote on Friday. Elon Musk becoming a trillionaire 0:18:16.560 --> 0:18:20.840 fills you with feelings of, oh, wow, cool, wish I 0:18:20.920 --> 0:18:29.320 could do that, That's awesome, how impressive, versus that's disgusting. 0:18:30.400 --> 0:18:33.600 I'm angry, unfeased on. 0:18:33.680 --> 0:18:35.439 Something wrong exactly. Yeah. 0:18:35.560 --> 0:18:38.000 In other words, positive feelings versus negative feelings. 0:18:38.240 --> 0:18:40.760 I can't imagine. 0:18:40.200 --> 0:18:42.440 How I could have any negative feelings about the fact 0:18:42.440 --> 0:18:46.080 that Elon Musk became a trillionaire through inventing all kinds 0:18:46.119 --> 0:18:49.960 of really really cool stuff. Yeah, how could that possibly 0:18:50.000 --> 0:18:50.680 make me unhappy? 0:18:50.880 --> 0:18:57.200 Anywaying them, developing them, making them available to the masses. Yeah, 0:18:57.240 --> 0:18:57.720 that's the thing. 0:18:57.920 --> 0:19:00.480 So in Bezos was the world richest man for a while, 0:19:00.480 --> 0:19:02.760 and people would complain about that. Tim Sanderfer, who was 0:19:02.800 --> 0:19:07.560 always big on because he gives people stuff they want 0:19:07.680 --> 0:19:10.480 at a price they like that's how he became the 0:19:10.480 --> 0:19:17.919 world's richest man. What's wrong with that? Similar but different 0:19:17.920 --> 0:19:20.200 with Elon Musk anyway, The Washington Post put this out, 0:19:20.240 --> 0:19:25.240 which is just so incredibly misleading. It's Jeff Bezos's newspaper. 0:19:25.240 --> 0:19:27.399 He understands this, he would think he wouldn't want it anyway. 0:19:27.560 --> 0:19:30.920 Elon Musk companies have received at least thirty eight billion 0:19:31.080 --> 0:19:36.280 dollars in US government contracts, subsidies, loans, and tax credits, 0:19:36.680 --> 0:19:40.119 according to a comprehensive financial investigation they had to do 0:19:40.160 --> 0:19:43.320 an investigation the Washington Post. I like the way they 0:19:43.359 --> 0:19:46.960 lump together all those things that are completely different. I mean, 0:19:47.480 --> 0:19:52.320 tax credits, loans, subsidies, and contract government contracts are all 0:19:52.359 --> 0:19:54.160 completely different things. 0:19:54.160 --> 0:19:57.680 And all of them passed by the legislatures in question. 0:19:58.160 --> 0:20:00.280 Right, and so many of them are things but you 0:20:00.359 --> 0:20:06.080 on the left love. But one of my litmus tests 0:20:06.119 --> 0:20:09.200 to use that phrase again would be for those of 0:20:09.200 --> 0:20:12.440 you or who are complaining on our Twitter feed, because 0:20:12.440 --> 0:20:15.520 I basically tweeted out, you're a moron if you're mad 0:20:15.520 --> 0:20:17.919 about Elon becoming a trillionaire and you think it somehow 0:20:17.960 --> 0:20:20.800 takes money from you, Oh yeah, what about this much money? 0:20:20.880 --> 0:20:23.000 Or that much money he got. This much money isn't 0:20:23.000 --> 0:20:27.119 taxax payer money? Oh yeah, you're right about that money. 0:20:27.400 --> 0:20:30.160 All government money is tax payer money. But it's an 0:20:30.200 --> 0:20:35.119 investment or. In the case of the uh tes list cars, 0:20:35.160 --> 0:20:37.480 this is the stuff that your crowd wanted anyway to 0:20:37.520 --> 0:20:42.560 get the electric car industry going. But on the on 0:20:42.640 --> 0:20:46.760 the investing in various things, do you ever here's my 0:20:46.800 --> 0:20:50.720 litmus test. Did you ever get upset when the government 0:20:50.760 --> 0:20:54.959 invested billions of dollars in something that amounted to crap, 0:20:55.160 --> 0:20:58.520 didn't amount to anything, didn't do anybody any good, didn't 0:20:58.520 --> 0:21:01.920 create a single job, didn't help climate change, didn't help 0:21:01.960 --> 0:21:05.199 homeless people, didn't build a bullet train, didn't whatever. Do 0:21:05.280 --> 0:21:08.199 you ever get upset about those? Or only when somebody 0:21:08.280 --> 0:21:09.040 ends up rich? 0:21:09.680 --> 0:21:12.440 Right? Right? Well, the first one doesn't, right, the first 0:21:12.440 --> 0:21:15.760 one doesn't satisfy their envy, though, it's only the second 0:21:15.800 --> 0:21:18.160 one that really gets some feeling that envy. Because that's 0:21:18.160 --> 0:21:19.360 what this is all about. 0:21:19.240 --> 0:21:21.000 Right, And that's what I wanted to get to that. 0:21:21.720 --> 0:21:25.040 I was trying to find it the some philosopher from 0:21:25.080 --> 0:21:27.160 way back in the day, and I'd never heard anybody 0:21:27.160 --> 0:21:31.399 put it this way before. About how Marxism is. People 0:21:31.400 --> 0:21:34.800 get it wrong. They think it's because you want to 0:21:34.840 --> 0:21:37.400 help the downtrodden. Nope, it's because you want to tear 0:21:37.520 --> 0:21:44.000 down the successful. That's the motivation. You might, you know, 0:21:44.119 --> 0:21:48.120 intellectually claim to yourself that it's to help the downtrodden, 0:21:48.320 --> 0:21:52.399 but the real emotional motivation is that guy's got a 0:21:52.400 --> 0:21:55.600 bunch and I want to tear him down, which is sick. 0:21:55.960 --> 0:21:58.080 I don't know how you end up that way, but 0:21:58.320 --> 0:22:01.840 that's what that's what's bothering people. Otherwise, you'd been bothered 0:22:01.840 --> 0:22:05.640 by Stacy Abrams getting two billion dollars for her some other, 0:22:05.880 --> 0:22:08.480 some or other project that never amounted to anything, never 0:22:08.480 --> 0:22:12.000 created a job, never did anybody any good, but you didn't. 0:22:12.040 --> 0:22:16.080 That didn't bother you. Elon doing something that has ended 0:22:16.160 --> 0:22:19.840 up being cheaper products for the government, US the taxpayer, 0:22:20.320 --> 0:22:23.400 or creating hundreds of thousands of jobs and all those 0:22:23.440 --> 0:22:26.280 people pay taxes and blah blah blah. That makes you 0:22:26.359 --> 0:22:30.600 mad because it made Elon richer. It's just an envy thing, yeah, clear, 0:22:30.680 --> 0:22:31.879 so logic behind it. 0:22:32.200 --> 0:22:34.879 Their entire neighborhoods, even cities where the vast majority of 0:22:34.920 --> 0:22:37.560 people think that way came across this. I love this 0:22:37.920 --> 0:22:42.280 reply to somebody who calls themselves proud socialist and says, 0:22:42.320 --> 0:22:44.640 I would much rather live in a society where everyone 0:22:44.680 --> 0:22:48.000 has healthcare, housing, and food than a society or one 0:22:48.080 --> 0:22:51.720 trillionaire now owns more wealth than half the country. And 0:22:51.800 --> 0:22:54.960 this person responded, I'd rather live in a society where 0:22:55.000 --> 0:22:57.840 everyone has access to healthcare, housing, and food too. The 0:22:57.920 --> 0:23:01.679 real question is what system is most effectivot producing those outcomes. 0:23:02.160 --> 0:23:05.800 Blaming a trillionaire for poverty misunderstands the problem. A trillionaire 0:23:05.840 --> 0:23:10.440 doesn't create government deficits, waste, public funds, mismanaged housing policy, 0:23:10.560 --> 0:23:14.639 inflate the currency, or burden businesses with regulations that suppress growth. 0:23:14.880 --> 0:23:19.159 Governments do. The entrepreneur builds a trillion dollar enterprises, demonstrating 0:23:19.200 --> 0:23:23.560 how to think, innovate, organize, lead, execute, allocate capital, and 0:23:23.640 --> 0:23:27.400 create value at an extraordinary scale. In most cases, their 0:23:27.400 --> 0:23:31.040 wealth is a by byproduct of creating products and services 0:23:31.240 --> 0:23:34.640 that millions or billions of people voluntarily choose to use. 0:23:35.359 --> 0:23:38.879 And Furthermore, history shows that widespread prosperity was not created 0:23:38.920 --> 0:23:42.000 through wealth redistribution never has been Since the rise of 0:23:42.040 --> 0:23:46.720