WEBVTT - 11/18/25: Foreclosures Surge, Epstein Scandal Explodes, Trump Latino Support Plummets 0:00:00.080 --> 0:00:01.599 Hey guys, Saga and Crystal here. 0:00:01.680 --> 0:00:05.240 Independent media just played a truly massive role in this election, 0:00:05.360 --> 0:00:07.840 and we are so excited about what that means for 0:00:07.880 --> 0:00:08.720 the future of this show. 0:00:08.880 --> 0:00:10.760 This is the only place where you can find honest 0:00:10.760 --> 0:00:13.280 perspectives from the left and the right that simply does 0:00:13.320 --> 0:00:14.680 not exist anywhere else. 0:00:14.760 --> 0:00:17.080 So if that is something that's important to you, please 0:00:17.120 --> 0:00:19.599 go to Breakingpoints dot com. Become a member today and 0:00:19.640 --> 0:00:22.800 you'll get access to our full shows, unedited, ad free, 0:00:22.800 --> 0:00:25.600 and all put together for you every morning in your inbox. 0:00:25.680 --> 0:00:27.560 We need your help to build the future of independent 0:00:27.560 --> 0:00:29.920 news media and we hope to see you at Breakingpoints 0:00:29.960 --> 0:00:35.960 dot com. Good morning, everybody, Happy Tuesday. Have an amazing 0:00:36.000 --> 0:00:37.840 show for everybody today. What do we have, Crystal, indeed 0:00:37.840 --> 0:00:38.080 we do. 0:00:38.120 --> 0:00:40.440 We have Kevin Hassett of the White House telling us 0:00:40.440 --> 0:00:42.960 we may have a quiet period in the labor market, 0:00:43.000 --> 0:00:45.840 nothing to be distressed about, just because of AI displacement. 0:00:45.920 --> 0:00:48.120 Might be a a little quiet out there in terms 0:00:48.159 --> 0:00:50.919 of job creation. Also some updates on Larry Summers, who 0:00:51.040 --> 0:00:54.400 was heavily featured in those Epstein emails that were released. 0:00:54.440 --> 0:00:56.640 He says he is now stepping back from some of 0:00:56.680 --> 0:00:59.480 his public commitments, So we will dig into what was 0:00:59.600 --> 0:01:00.440 revealed there. 0:01:00.280 --> 0:01:01.200 And his response. 0:01:01.720 --> 0:01:04.440 Also a bunch of updates with regard to Ice. First 0:01:04.480 --> 0:01:07.120 of all, Latinos who had voted in significant numbers for 0:01:07.160 --> 0:01:11.960 Trump abandoning him also in significant numbers. And the Greg 0:01:12.000 --> 0:01:14.399 Bovino team has now moved to Charlotte and then they're 0:01:14.400 --> 0:01:16.759 apparently planning to go to New Orleans. So break down 0:01:16.959 --> 0:01:20.240 what we know about those deployments and also the aftermath 0:01:20.280 --> 0:01:23.640 of what happened in Chicago, some new indications about what 0:01:23.800 --> 0:01:27.160 we may be planning in Venezuela. Will dig into that. 0:01:27.240 --> 0:01:30.119 Sager has a property tax update for all of us. 0:01:30.200 --> 0:01:32.800 Excited to hear from him on that one, and really 0:01:32.800 --> 0:01:35.480 looking forward to this interview we have with a top 0:01:35.520 --> 0:01:38.080 AI safety researcher. This is a guy who had left 0:01:38.400 --> 0:01:42.000 Open AI because of his concerns about the direction of AI. 0:01:42.080 --> 0:01:43.680 He is sounding the alarm and he co author of 0:01:43.720 --> 0:01:46.319 paper called AI twenty twenty seven that's gotten a lot 0:01:46.319 --> 0:01:49.360 of attention. That is his and his co author's best 0:01:49.520 --> 0:01:53.320 guess of how AI is going to develop and the 0:01:53.560 --> 0:02:00.400 major consequential, potentially civilizational risks entailed in this multi trillion 0:02:00.440 --> 0:02:03.320 dollar project that the oligarchs and our government, Chinese and 0:02:03.320 --> 0:02:05.880 everybody else are throwing tons of money at, tons tons 0:02:05.920 --> 0:02:08.200 of effort at, so really looking forward to. 0:02:08.400 --> 0:02:08.960 Speaking with him. 0:02:08.960 --> 0:02:10.639 I've watched a bunch of his interviews and read his 0:02:10.720 --> 0:02:11.680 paper obviously. 0:02:11.400 --> 0:02:14.079 So that's one really interesting guy. I've seen a bunch 0:02:14.080 --> 0:02:15.640 of his stuff. I know some of you are familiar 0:02:15.639 --> 0:02:17.600 as well with play clips of him here on the show. 0:02:17.639 --> 0:02:20.160 Thank you to everybody who has been signing up at 0:02:20.200 --> 0:02:22.680 a premium subscriber Breakingpoints dot com if you can help 0:02:22.840 --> 0:02:26.440 support our work, our Epstein Expose's journalism and more. It 0:02:26.480 --> 0:02:29.280 actually deeply helps us out over here. If you can't 0:02:29.280 --> 0:02:31.480 afford it, no worries, please just hit subscribe to this 0:02:31.560 --> 0:02:34.040 video or any of the videos on our YouTube channel. 0:02:34.320 --> 0:02:36.520 And if you're listening to this the podcast, please send 0:02:36.560 --> 0:02:39.040 an episode to a friend. We've got a ton of 0:02:39.080 --> 0:02:42.160 new listeners actually coming in from the Epstein issue, which 0:02:42.200 --> 0:02:44.520 we're deeply proud to have you all here for trusting 0:02:44.600 --> 0:02:47.160 us with your newsdiet, So please send an episode to 0:02:47.200 --> 0:02:49.480 your friend if you're interested, or rate us five stars 0:02:49.639 --> 0:02:52.040 on our favorite podcast platform. It really helps other people 0:02:52.200 --> 0:02:54.440 find the show. But let's go ahead and start there. 0:02:54.520 --> 0:02:59.200 With the economy and this quiet period being described here 0:02:59.320 --> 0:03:03.320 by the White House in this AI, they're saying, it's 0:03:03.360 --> 0:03:05.000 just a little cooling off, it's just a little bit 0:03:05.040 --> 0:03:07.600 of a blip of what's happening. Let's take a listen. 0:03:07.760 --> 0:03:11.720 Last CPI report. We got surprised forty eight Bloomberg economists 0:03:11.720 --> 0:03:14.720 on the downside, and even had some sort of temporary 0:03:14.720 --> 0:03:16.800 bad news because there was a refinery. 0:03:16.320 --> 0:03:17.839 That would shut down if you're looking at the top 0:03:17.840 --> 0:03:18.480 flag number. 0:03:18.720 --> 0:03:20.840 I think that there have been mixed signals in the 0:03:20.919 --> 0:03:25.880 job market and really really positive signals in the output markets. 0:03:26.200 --> 0:03:28.480 As you know, we've got GDP now running close to 0:03:28.520 --> 0:03:32.000 four percent, we've got productivity running up around three percent, 0:03:32.280 --> 0:03:33.920 and so I think that there could be a little 0:03:33.960 --> 0:03:37.960 bit of almost a quiet time in the labor market 0:03:38.080 --> 0:03:41.040 because firms are finding that AI is making their workers 0:03:41.080 --> 0:03:43.600 so productive that they don't necessarily have to hire the 0:03:43.680 --> 0:03:46.080 new kids out of college and so on. But because 0:03:46.080 --> 0:03:48.960 there's so much output growth and income growth, that's the 0:03:49.040 --> 0:03:51.000 kind of thing that you know, a free market will 0:03:51.000 --> 0:03:53.880 work out relatively quickly. As you know, new ways to 0:03:53.920 --> 0:03:54.880 spend money emerge. 0:03:55.320 --> 0:03:58.520 Free mark's going to figure it out, don't worry about it. Well, 0:03:58.600 --> 0:04:01.360 you know, it's one of those where I keep saying this, 0:04:01.480 --> 0:04:04.840 The Biden vibes on this are just so out of control. 0:04:04.920 --> 0:04:07.960 Like what they keep doing is they post charts, they 0:04:08.000 --> 0:04:11.280 say the economy is historically better than ever. If it 0:04:11.400 --> 0:04:15.000 is bad, it's always somebody else's fault. And if you 0:04:15.080 --> 0:04:16.760 know to the extent it is somebody else's fault, we're 0:04:16.760 --> 0:04:19.600 also we're not going to do anything about somebody else's fault, right, 0:04:19.640 --> 0:04:21.560 so you can't. This is one of those where with 0:04:21.640 --> 0:04:25.279 AI they just continue to basically think that yes, it 0:04:25.279 --> 0:04:28.719 will shake out. It's free market creative destruction, the libertarian's 0:04:29.000 --> 0:04:30.960 favorite word whenever it comes to this, And you know, 0:04:31.200 --> 0:04:33.880 maybe there is something to that. But part of what 0:04:34.000 --> 0:04:35.640 is so distressing and we're going to talk about with 0:04:35.640 --> 0:04:38.920 the AI twenty twenty seven plan is basically they keep 0:04:38.960 --> 0:04:40.919 saying stuff out loud like none of you are going 0:04:41.000 --> 0:04:43.440 to work in five years, and the government is just 0:04:43.520 --> 0:04:47.320 completely just letting it go. Just this morning, House Republicans 0:04:47.320 --> 0:04:49.479 are apparently scheming to try and put some language in 0:04:49.680 --> 0:04:53.320 that will block all states from regulating AIS any individual state. 0:04:53.400 --> 0:04:56.080 Remember this, They previously tried to pass this gambit and 0:04:56.120 --> 0:05:00.279 there was a pushback against it, and I'm increasingly just thinking, like, look, look, 0:05:00.480 --> 0:05:03.880 I'm sorry, Like we have to have democratic check whenever 0:05:03.880 --> 0:05:06.839 it comes to our relationship with this technology, when billions 0:05:06.880 --> 0:05:09.000 of us are going to use it, and you out 0:05:09.080 --> 0:05:11.520 in your own words, if we take you seriously, it's 0:05:11.560 --> 0:05:14.400 going to cause mass layoffs, It's going to disrupt every 0:05:14.400 --> 0:05:16.920 facet of our society. It's just too important to leave 0:05:16.960 --> 0:05:18.600 in the hands of Sam Altman. I don't trust him, 0:05:18.600 --> 0:05:19.520 and I don't think anybody. 0:05:19.240 --> 0:05:22.200 Else should oh or anyone anyone or literally anyone else. 0:05:22.240 --> 0:05:24.640 I mean, so, I actually been thinking a lot about 0:05:24.680 --> 0:05:27.040 this this week, and increasingly obviously. 0:05:26.640 --> 0:05:28.240 There's a lot going on with the Trumpeters. 0:05:28.279 --> 0:05:31.200 There's you know, Ebstein files, there's the big beautiful Bill, 0:05:31.440 --> 0:05:34.480 there's Venezuela, there's the Ice deployments. There's a lot of 0:05:34.480 --> 0:05:37.880 shit going on with the Trump administration. I'm increasingly feeling 0:05:37.960 --> 0:05:42.200 like the AI push is actually the main event, is 0:05:42.240 --> 0:05:45.840 like the main done just in terms of the consequences 0:05:45.880 --> 0:05:48.400 of it that I've already been convinced of, but that 0:05:48.720 --> 0:05:51.640 you know, in Trump's campaign, you'll recall you had, first 0:05:51.680 --> 0:05:53.760 of all, him flip his position on a bunch of issues, 0:05:53.760 --> 0:05:56.159 including crypto in order. 0:05:56.000 --> 0:05:57.560 To please these tech oligarchs. 0:05:57.600 --> 0:05:59.880 You had a bunch of these tech guys who previously 0:06:00.040 --> 0:06:02.120 we like more or less Democrats or voting for Democrats, 0:06:02.160 --> 0:06:05.520 supporting Democrats, flip their support to Trump. You had Elon 0:06:05.600 --> 0:06:08.119 Musk himself coming in with what two hundred and fifty 0:06:08.120 --> 0:06:12.240 million dollars plus and taking an extremely aggressive, active role 0:06:12.279 --> 0:06:15.480 in the campaign, being influential in who Trump picked as 0:06:15.480 --> 0:06:17.760 his VP. And then what happens as soon as he 0:06:17.800 --> 0:06:19.800 comes into office. First of all, you guys will remember 0:06:19.839 --> 0:06:22.840 the images from the inauguration where he's surrounded by all 0:06:22.920 --> 0:06:26.360 of these tech barons. A striking image and a striking 0:06:26.400 --> 0:06:29.159 portrait of what was to come. In that initial batch 0:06:29.200 --> 0:06:31.640 of executive orders, you remember there was a whole slew 0:06:31.640 --> 0:06:35.000 of them, so it was somewhat lost. But immediately what 0:06:35.120 --> 0:06:38.320 he did was to roll back any of the safety 0:06:38.520 --> 0:06:41.479 guardrails that have been put in place by the Biden administration. 0:06:41.839 --> 0:06:45.640 The whole push of this administration has been to completely 0:06:45.800 --> 0:06:49.479 deregulate the tech industry, I mean regulation in general, but 0:06:49.520 --> 0:06:52.320 specifically the tech industry, and make it so that it 0:06:52.360 --> 0:06:53.600 was completely. 0:06:53.160 --> 0:06:54.160 Off to the races. 0:06:54.400 --> 0:06:57.960 With this AI tech development with no breaks on the car. 0:06:58.480 --> 0:07:01.560 We had multiple press conferences with these guys. You see 0:07:01.600 --> 0:07:04.800 them at dinners with these guys. This is the central 0:07:05.040 --> 0:07:09.479 piece that this Trump administration really is about. They're placing 0:07:09.520 --> 0:07:11.960 this bet that number one, we can beat China to 0:07:12.280 --> 0:07:15.920 ag artificial general intelligence, and that number two, it's going 0:07:16.000 --> 0:07:19.320 to magically solve more problems than it creates. When if 0:07:19.360 --> 0:07:22.720 you actually listen to the researchers of one of them 0:07:22.760 --> 0:07:24.320 we're going to talk to you today. If you listen 0:07:24.520 --> 0:07:27.400 to even guys like Sam Altman or Mark Zuckerberg, who's 0:07:27.480 --> 0:07:29.920 one of the least responsible actors actually in all of this, 0:07:30.120 --> 0:07:32.960 you listen to Elon Musk, they'll tell you we are 0:07:33.000 --> 0:07:36.480 planning to replace at the very least tens of millions 0:07:36.480 --> 0:07:39.160 of jobs with robots, like we are planning to make 0:07:39.240 --> 0:07:43.560 you irrelevant. This is already happening. We covered how Amazon 0:07:44.000 --> 0:07:48.760 their plans to eliminate half a million jobs were leaked. 0:07:48.840 --> 0:07:50.840 The New York Times got their hands on it. They're 0:07:50.880 --> 0:07:53.320 already implementing this. There is a warehouse down I believe 0:07:53.320 --> 0:07:58.280 in Shrapeport, Louisiana, where is largely robots already. So this 0:07:58.320 --> 0:08:03.080 is happening now. This clip from Kevin Hassett is so significant. 0:08:03.200 --> 0:08:05.040 I think, as far as I know, this is the 0:08:05.040 --> 0:08:08.880 first time the White House is acknowledging that that labor 0:08:09.200 --> 0:08:12.920 displacement is already happening. Now it's happening exactly the places 0:08:12.920 --> 0:08:15.720 you would expect, with coders and with new employees coming 0:08:15.800 --> 0:08:18.120 out of college, so that those entry level jobs are 0:08:18.160 --> 0:08:20.760 being destroyed. People cannot get their foot on the ladder 0:08:21.040 --> 0:08:22.480 that is where it starts. 0:08:22.680 --> 0:08:24.760 But they have much bigger goals. 0:08:24.960 --> 0:08:27.280 So when he says, oh, it's just a quiet time 0:08:27.600 --> 0:08:30.240 and plays it down and frames it actually soger like 0:08:30.280 --> 0:08:32.000 this is some plus. Oh, they're just you know, these 0:08:32.000 --> 0:08:34.640 companies are getting more productive. It's a good thing actually 0:08:35.120 --> 0:08:38.080 that we're displacing all these workers and there's going to 0:08:38.080 --> 0:08:41.000 be a spike in unemployment and young kids coming out 0:08:41.040 --> 0:08:42.800 of college are not going to have jobs to go to. 0:08:42.920 --> 0:08:44.160 That's how he's framing it. 0:08:44.440 --> 0:08:46.719 That's how they're thinking about it, and that's how these 0:08:46.720 --> 0:08:48.480 companies are thinking about it too, which is why they 0:08:48.520 --> 0:08:50.280 all go out and brag as much as possible about 0:08:50.280 --> 0:08:51.360 all the layoffs that they're doing. 0:08:51.480 --> 0:08:53.600 Yeah, I mean, you know, to think it back. Actually, 0:08:53.880 --> 0:08:57.000 if you even roll the tape of our inauguration coverage. 0:08:57.040 --> 0:08:59.360 What we said is if you roll back, you know 0:08:59.480 --> 0:09:01.800 you will offer You may think that the most significant 0:09:01.800 --> 0:09:04.840 thing that happened in the Trump administration was AI. You know, 0:09:04.920 --> 0:09:07.960 considering all those tech CEOs, which we literally said on 0:09:08.000 --> 0:09:11.280 the day he was inaugurated with that picture, AI regulation 0:09:11.440 --> 0:09:13.360 and all of that has also just been a morass. 0:09:13.360 --> 0:09:15.080 You know you're talking about AIS. I did a few 0:09:15.080 --> 0:09:18.640 monologues about it at the time. Unfortunately, the Biden rules, 0:09:18.640 --> 0:09:21.160 in my opinion, would have basically just crystallized too big 0:09:21.200 --> 0:09:23.880 to fail. With a lot of the open AI and others. 0:09:24.040 --> 0:09:25.640 At that time there was a little bit more of 0:09:25.679 --> 0:09:28.520 a hope for an open source direction. The Trump administration 0:09:28.840 --> 0:09:33.400 has abandoned even the Biden administration's effective commitment to op 0:09:33.480 --> 0:09:36.559 too big to fail and to regulation because what they've 0:09:36.559 --> 0:09:40.720 done they need the AI companies to continue to investing 0:09:40.720 --> 0:09:44.439 in our economy. If they do stop building these data centers. 0:09:44.520 --> 0:09:46.040 We are in an official recession. 0:09:46.080 --> 0:09:46.160 Now. 0:09:46.160 --> 0:09:48.120 We're going to get to some data that already shows 0:09:48.160 --> 0:09:51.800 some recessionary impact. But the issue is the stock market 0:09:51.840 --> 0:09:55.480 and GDP is entirely reliant on these AI gains. That's 0:09:55.480 --> 0:09:57.960 part of the reason they'reletting them let fly because they're like, look, 0:09:58.000 --> 0:10:00.280 without this, we're screwed. I mean, you go to talk 0:10:00.320 --> 0:10:02.640 about tariffs and all this other stuff, the discussion is 0:10:02.720 --> 0:10:06.400 totally different without a lot of these AI companies, And 0:10:06.559 --> 0:10:10.880 in general, you're actually seeing recession and inflation problems that 0:10:10.920 --> 0:10:14.120 are bubbling up everywhere. Consumers are more miserable than ever before, 0:10:14.160 --> 0:10:17.160 literally rock bottom sentiment, and of course the same type 0:10:17.160 --> 0:10:20.480 of Biden administration stuff trying to tell consumers that they're wrong, 0:10:20.600 --> 0:10:23.480 like they're not wrong, they're empirically correct when it comes 0:10:23.480 --> 0:10:27.000 to grocery prices, housing, basic cost of living, health insurance, 0:10:27.040 --> 0:10:28.880 all the stuff that we cover here on a day 0:10:28.920 --> 0:10:31.400 to day basis, And the administration is doing the same thing, 0:10:31.720 --> 0:10:34.400 trying to blame other people. In fact, frankly, they're just 0:10:34.440 --> 0:10:37.160 doing it an even dumber and more low IQ way. 0:10:37.240 --> 0:10:40.720 Here with Scott Bessen for his explanation on beef Maria. 0:10:40.760 --> 0:10:44.400 The beef market is a very specialized market. It goes 0:10:44.520 --> 0:10:49.800 in long cycles, and that this is the perfect storm 0:10:50.000 --> 0:10:54.800 again something we inherited. And there's also because of the 0:10:54.880 --> 0:11:01.000 mass immigration, a disease that had been we've been rid 0:11:01.040 --> 0:11:04.319 of in North America made its way up through South 0:11:04.360 --> 0:11:07.719 America as these migrants, they have brought some of their 0:11:07.760 --> 0:11:11.080 cattle with them. So part of the problem is we've 0:11:11.120 --> 0:11:16.439 had to shut the border to Mexican beef because of 0:11:16.480 --> 0:11:18.679 this disease called the screw worms, So we're not going 0:11:18.720 --> 0:11:20.560 to let that get into our supply chain. 0:11:21.280 --> 0:11:24.559 So yeah, the explanation is that some of these people 0:11:24.559 --> 0:11:27.040 have brought the cows with them and that that's the 0:11:27.120 --> 0:11:30.360 disease that is spreading me so well, you know, I checked, 0:11:30.440 --> 0:11:32.240 by the way, I did check on that. What he's 0:11:32.280 --> 0:11:38.480 alleging is something called bovine sponge ofform and cephalopathy. But 0:11:39.360 --> 0:11:42.319 from what we see on the CDC website and others, 0:11:42.320 --> 0:11:45.800 it is not necessarily because people are bringing cattle over 0:11:45.840 --> 0:11:49.000 the border with them. But regardless, you know, actually just 0:11:49.000 --> 0:11:51.960 heard from somebody yesterday and others like beef prices in 0:11:52.080 --> 0:11:55.160 terms of sticker shock at the grocery store are ones 0:11:55.200 --> 0:11:57.800 where people are paying a lot of attention. But I 0:11:57.840 --> 0:12:00.840 increasingly buy the housing theory of everything, and when you 0:12:00.880 --> 0:12:02.640 buy that and you look at the data, it's just 0:12:02.679 --> 0:12:05.240 a disaster, not only in terms of home prices and rates. 0:12:05.240 --> 0:12:07.280 But put this next one, please up on the screen. 0:12:07.600 --> 0:12:11.800 New Flora closures have now jumped some twenty percent in October, 0:12:12.000 --> 0:12:15.880 a sign of more distress in the housing market. Foreclosure starts. 0:12:15.920 --> 0:12:18.800 That's the initial phase of the process rose six percent 0:12:18.840 --> 0:12:21.439 for the month, and we're twenty percent higher than the 0:12:21.520 --> 0:12:25.360 year before. Completed foreclosures the final phase are up thirty 0:12:25.360 --> 0:12:29.160 two percent year over year. Florida, South Carolina in Illinois 0:12:29.320 --> 0:12:32.680 leading the state in Florida in foreclosures. They say that 0:12:32.760 --> 0:12:35.840 some thirty six thousand US properties with some type of 0:12:35.880 --> 0:12:39.400 foreclosure in October, such as default notices and others. That's 0:12:39.400 --> 0:12:42.120 twenty percent higher than the year prior. I mean, there's 0:12:42.160 --> 0:12:44.600 a lot of potential reasons for that. Usually it's just 0:12:44.600 --> 0:12:47.360 that people's household balance sheet and debt, which we've also 0:12:47.360 --> 0:12:50.160 been covering here now for years. It does eventually catch 0:12:50.240 --> 0:12:52.800 up if you're unable to make those mortgage payments. Also, 0:12:52.840 --> 0:12:55.480 potentially the government shutdown. Who knows how many of them 0:12:55.480 --> 0:12:57.760 were workers and others who are already behind on their 0:12:57.800 --> 0:13:00.960 bills and they just got a final final screw turning 0:13:00.960 --> 0:13:03.800 in there. So we don't know exactly what the reason is, 0:13:03.840 --> 0:13:06.480 but you know, if you lived through seven, you don't 0:13:06.520 --> 0:13:08.120 want to be seeing headlines like this. You just don't 0:13:08.120 --> 0:13:10.040 want to see it period, right. You want people to 0:13:10.120 --> 0:13:12.840 have enough money that they're at the very least they 0:13:12.840 --> 0:13:16.000 can make their kind of monthly bills. And right now 0:13:16.040 --> 0:13:19.559 with inflation at the grocery store, with housing, with rates 0:13:19.840 --> 0:13:23.120 and others, it just feels more unattainable than ever before. 0:13:23.280 --> 0:13:25.800 Especially and it's not about feeling. You can look at 0:13:25.800 --> 0:13:29.600 credit card balances, wages flat for over the last couple 0:13:29.640 --> 0:13:31.400 of years, and you can say it's pretty obvious where 0:13:31.400 --> 0:13:32.040 things are right now. 0:13:32.120 --> 0:13:34.040 Yeah, I just saw this from CNBC as well. It's 0:13:34.080 --> 0:13:36.719 the corollary to what you're saying about home foreclosures. Home 0:13:36.760 --> 0:13:39.640 Depot is cutting their earnings outlook as home improvement demand 0:13:39.679 --> 0:13:43.679 falls short of expectations. Apparently, they missed their third quarter 0:13:43.720 --> 0:13:46.760 earning estimates. That's their third straight miss. They cut their 0:13:46.760 --> 0:13:50.040 full year profit outlook. The company said slow consumer spending 0:13:50.280 --> 0:13:53.079 and a weaker housing market have made home improvement demand 0:13:53.240 --> 0:13:56.400 worse than it expected. So you can see indications of 0:13:56.400 --> 0:13:57.760 those ut youwhere yeah. 0:13:57.600 --> 0:14:00.000 You can see it in that debt. And then also 0:14:00.040 --> 0:14:03.120 so because AI is the single bet, then you also 0:14:03.160 --> 0:14:05.400 start to have to pay attention to some of these 0:14:05.440 --> 0:14:08.640 people who are you know, exiting their position. There was 0:14:08.679 --> 0:14:11.400 a huge one News yesterday showed let's put this up 0:14:11.440 --> 0:14:14.240 here on the screen A four. Peter Teal's hedge fund 0:14:14.240 --> 0:14:17.480 has now dumped his entire Endvidia stock and has cut 0:14:17.520 --> 0:14:20.520 back even on the Tesla position. I mean, it's one 0:14:20.560 --> 0:14:23.600 of those where people obviously are trading and all of 0:14:23.600 --> 0:14:27.160 that all the time, but in general when you look 0:14:27.320 --> 0:14:30.200 at the people who are exiting and now starting to 0:14:30.240 --> 0:14:33.760 call the top. Let's say, on Nvidia, you had Michael Burry, 0:14:33.760 --> 0:14:37.080 the famed big short investor. Again it's always the caveat 0:14:37.080 --> 0:14:40.080 he has called many since the big short and he 0:14:40.320 --> 0:14:42.960 was incorrect. But he is staking out a big position 0:14:43.280 --> 0:14:46.960 against an Nvidia and Palenteer. But here what you see 0:14:47.080 --> 0:14:49.440 is that they sold some five hundred and thirty seven 0:14:49.480 --> 0:14:52.880 thousand shares in Nvidia. The steak would have been worth 0:14:52.880 --> 0:14:56.120 about one hundred million dollars, so the company's closed price 0:14:56.160 --> 0:14:59.480 on September thirtieth. This Teal sell off, coupled with Soft 0:14:59.480 --> 0:15:04.080 Banks sell off of its own n Video holdings last week, 0:15:04.280 --> 0:15:07.160 has fueled Wall Street's angst that the frenzy driving these 0:15:07.160 --> 0:15:09.800 sorts may have peaked, putting at risk the trillions of 0:15:09.800 --> 0:15:14.080 dollars that are committing to AI advancement. Investors and analysts 0:15:14.120 --> 0:15:17.280 still looking to the third quarter results are reported tomorrow 0:15:17.440 --> 0:15:20.280 to dispel worries of a bubble. At the same time, 0:15:20.720 --> 0:15:24.440 this I actually found kind of fascinating in myriad ways. 0:15:24.600 --> 0:15:28.120 Put a five here on the screen. So the founder 0:15:28.240 --> 0:15:31.480 of Klarna, he's the Swedish billionaire. Now, if you don't 0:15:31.520 --> 0:15:33.480 know what Klarna is, it's one of those buy now, 0:15:33.560 --> 0:15:36.720 pay later apps. So a guy who became a billionaire 0:15:36.960 --> 0:15:40.200 by founding a company which has basically saddled people with 0:15:40.280 --> 0:15:43.040 hundreds of billions of dollars in buy now, pay later debt. 0:15:43.200 --> 0:15:45.600 So's you could call him a debt billionaire. I think 0:15:45.640 --> 0:15:48.640 that's too fair. Now, says I'm nervous about all of 0:15:48.640 --> 0:15:52.320 this AI debt spending. Seems to me he's an expert 0:15:52.320 --> 0:15:55.440 in debt. That just me personally like the guy who 0:15:55.520 --> 0:15:58.840 literally created a novel way of debt in the twenty twenties, 0:15:58.880 --> 0:16:02.040 which that takes skill. I wouldn't say it's moral or anything, 0:16:02.080 --> 0:16:04.800 but takes skills, certainly to try and extract more money 0:16:05.200 --> 0:16:08.040 out of the consumer economy. In the twenty twenties, this 0:16:08.120 --> 0:16:11.440 guy says, I'm nervous about the trillions of dollars of 0:16:11.440 --> 0:16:14.840 spending on AI. He says the tech industry is committing 0:16:14.880 --> 0:16:18.480 too much money to huge computing infrastructure. He is a 0:16:18.600 --> 0:16:23.080 shareholder in open Ai, Perplexity xai service through his family office. 0:16:23.200 --> 0:16:26.600 He told The Financial Times that huge sums being poured 0:16:26.680 --> 0:16:29.760 making nervous. I think open Ai can be very successful 0:16:29.800 --> 0:16:32.400 at a company, but at the same time, I'm very 0:16:32.440 --> 0:16:35.000 nervous about the size of these investments in data centers. 0:16:35.120 --> 0:16:37.760 That's a particular thing that I am concerned about. He 0:16:37.920 --> 0:16:41.480 himself calls himself an AI evangelist, and he says an 0:16:41.480 --> 0:16:44.960 AI chatbot already handles two thirds of his customers services 0:16:45.000 --> 0:16:48.960 and inquiries over at Klarna. Now what he's pointing to, though, 0:16:49.360 --> 0:16:52.040 I we keep hammering this home on the show open 0:16:52.080 --> 0:16:55.160 Ai and Perplexity. In all these places they make money. 0:16:55.280 --> 0:16:57.560 No one's saying they don't make any money. They actually 0:16:57.600 --> 0:16:59.800 make a lot of money. But they have so much 0:17:00.200 --> 0:17:03.880 the door that in terms of commitments that open ai itself, 0:17:03.920 --> 0:17:06.399 it's current projected loss in twenty twenty eight is seventy 0:17:06.440 --> 0:17:10.040 eight billion. Seventy eight billion dollars of losses just in 0:17:10.080 --> 0:17:12.680 twenty twenty eight and a trillion dollars in spending commitments 0:17:12.720 --> 0:17:14.639 just for that one company that doesn't even factor in 0:17:15.080 --> 0:17:19.080 Xai perplex all of these other data center commitments. So 0:17:19.240 --> 0:17:22.200 if you have even a marginal crawl back to reality, 0:17:22.480 --> 0:17:25.800 that is a crash for our economy and for our GDP. 0:17:26.359 --> 0:17:29.960 That's the problem. And I mean, look, enough people are 0:17:29.960 --> 0:17:32.800 saying it at this point. I don't even really think 0:17:32.840 --> 0:17:35.120 you could call it a black Swan event. It's one 0:17:35.160 --> 0:17:38.159 of the more predictable things there are. Obvious business cycle 0:17:38.240 --> 0:17:39.560 is one of those things they teach you and like 0:17:39.880 --> 0:17:42.880 econ one oh one, and everyone's just kind of on 0:17:43.200 --> 0:17:45.840 pins and needles waiting for it to happen. But Wall 0:17:45.880 --> 0:17:48.879 Street's irrational exuberance. Also, it doesn't seem to be fading. 0:17:49.080 --> 0:17:51.520 There's still billions of dollars being poured into this, so 0:17:51.760 --> 0:17:54.159 really nobody knows, like you could be, you know, it's 0:17:54.320 --> 0:17:56.520 you could either be a person who is you know, 0:17:56.560 --> 0:17:59.800 crying wolf or something like that. Like, nobody is exactly clear. 0:18:00.080 --> 0:18:02.679 Nobody wants to miss out on the gains. But the richest, 0:18:02.720 --> 0:18:05.560 some of the richest fund managers in the world, they're 0:18:05.600 --> 0:18:08.120 taking profit they're selling and they're saying, hey, that's enough, 0:18:08.160 --> 0:18:09.919 We're going to take the cash. Yeah, what it is 0:18:09.960 --> 0:18:11.240 that makes me very nervous. 0:18:13.920 --> 0:18:16.280 A lot of the logic of it is people don't 0:18:16.280 --> 0:18:18.320 want to be left on the sidelines because think of 0:18:18.440 --> 0:18:21.760 what has been advertised as the end state of AI 0:18:21.920 --> 0:18:24.359 is one of these companies is going to reach AGI 0:18:24.480 --> 0:18:26.879 and that's going to change everything and the you know, 0:18:26.960 --> 0:18:29.720 the company and the founders or the CEO, the executives, 0:18:29.760 --> 0:18:32.760 whoever's in charge at that time that are you know, 0:18:32.840 --> 0:18:35.240 in charge of that company. When they achieve AGI, not 0:18:35.280 --> 0:18:37.720 only are they going to become tremendously wealthy, they're also 0:18:37.720 --> 0:18:41.200 going to become tremendously powerful, like tremendously powerful in a 0:18:41.240 --> 0:18:45.000 way that has never we've never seen before in the 0:18:45.040 --> 0:18:48.240 history of the planet type of powerful if the promise 0:18:48.320 --> 0:18:50.160 lives up to what they're holding out. 0:18:50.640 --> 0:18:52.440 So, yeah, these guys who. 0:18:52.359 --> 0:18:57.879 Are megalomaniacs want to make sure that they are have 0:18:57.960 --> 0:19:00.280 a stake in the winning team when that it all 0:19:00.320 --> 0:19:02.680 comes to pass. Now it's possible, it never does come 0:19:02.720 --> 0:19:05.080 to pass. Our guest today will say, you know, he 0:19:05.119 --> 0:19:06.960 thinks it is he believes that they are going to 0:19:07.000 --> 0:19:08.960 get to that point, but it's possible they never do 0:19:09.040 --> 0:19:10.919 get to that point, that it stays sort of in 0:19:10.960 --> 0:19:13.119 the realm of what it is now, which is still 0:19:13.160 --> 0:19:15.239 causing a lot of havoc and displacement and a lot 0:19:15.280 --> 0:19:18.440 of significant consequences, a quiet time in the labor market, 0:19:18.480 --> 0:19:20.840