Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Referenced in the show: Axios - Changes to capital gains taxes omitted from Biden's infrastructure plan https://www.axios.com/biden-infrastructure-plan-capital-gains-taxes-318224d2-84f8-4c48-b5db-bbcec5fdd74f.html Cal Matters - A wealth tax could sabotage California’s recovery https://calmatters.org/commentary/my-turn/2021/03/a-wealth-tax-could-sabotage-californias-recovery Healthline - COVID-19 Vaccines May Help Stop Virus Transmission: Here’s What We Know https://www.healthline.com/health-news/covid-19-vaccines-may-help-stop-virus-transmission-heres-what-we-know Show Notes: 0:00 Besties intro, state of the public & private markets 18:54 Chamath receives inspiring note re: last week’s longevity talk 21:17 Archegos debacle, issues with trading on margin 32:26 Biden’s infrastructure bill, US government becoming overleveraged 45:45 Potential tax hikes, inefficient deployment of capital, California wealth tax impact 52:59 Trade off between freedom & equality, how free markets spur innovation, generational changes 1:05:14 Is a wealth tax constitutional? Vaccine update
The All In Podcast is back with David Friedberg, David Sax, and Chamath Palihapatiya. They're punchy, in a mood, and ready to talk about open sourcing to fans, Kinwa, and more.
The market is going to hold SPAC leaders accountable for deals that were retraded causing IPOs to be discounted by 20% and 30%. With the expiration of SPACs approaching, market scrutiny is increasing.
Pre-revenue seed deals used to be in the 5 to 10 million dollar valuation range, but now they can go for 27 to 30 million dollars, putting pressure on sponsors to put up more money to get these deals done.
The speaker shares their experience in the VC market during a four month period where they did more deals than any other four month period due to other investors not investing. They highlight the importance of active risk management in the private market, suggesting that it may be a good idea to focus on working with existing portfolios to raise capital, rather than investing in new companies.
The speakers discuss finding a deal where all four "besties" can be involved and sharing pitches based on subject matter to the best-fit bestie.
The origin story of Tiger Management involves its founder, Julian Robertson Jr., calling everyone "tiger" and naming the company after this nickname. The company later faced a major scandal due to a $5 billion book of business with 60,000 derivative contracts and over a trillion dollars of notional exposure, similar to the long-term capital management fiasco of 1997.
The effectiveness of stress test methodologies in ensuring adequate capital reserves, while creating low cost capital and maintaining liquidity in the markets, is a topic of ongoing debate. If stress tests are too limiting, the cost of capital goes up and it becomes difficult to trade, resulting in lower market liquidity.
With governments continuing to spend and run deficits, risk should be better managed at the individual and company level. Private market participants being overlevered is a concerning issue while governments remain sympathetic for being overlevered.
The United States' current single party system can cause issues with any bill being defined by a small group of people, leading to a potential inability to fund necessary programs if interest rates increase, resulting from inflation.
A nuanced take on the infrastructure bill suggests that while there may be some need for spending, a lot of it feels anachronistic and habitual, with the majority of the $2 trillion bill going towards transportation infrastructure.
California proposed a wealth tax through a 1% surcharge for individuals with over 50 million, and an increase in the corporate tax from 21% to 28% to fund the first bill of a proposed infrastructure plan. The second bill, known as the Families Act, would be funded through personal income taxes increase which may prove to be controversial.
According to this discussion, a society that prioritizes freedom in terms of infrastructure, entrepreneurship and innovation is likely to achieve the most progress. Implementing measures such as a wealth tax could limit this progress over time, even if they aim to achieve equality.
A wealth tax may lead to a decrease in tax revenue as the rich and their businesses move out of the state to avoid the tax. The younger generation may have forgotten how it feels to lose, leading them to leave the state now to avoid the potential wealth tax in the future.
The challenge with democracy is that the majority can take things away from the minority, but one principle of political science is to protect a minority that funds a state's budget by preventing the majority from discriminating against them.
A recently published paper shows that the first shot of the COVID-19 vaccine can provide 80% efficacy after two to three weeks, while another study suggests waiting more than three months for the second shot may be more effective in vaccinating a larger population.
In this podcast, the speaker highlights the danger of blindly following experts without questioning the logic behind their arguments. He argues that this limits people's ability to express themselves, share ideas, and find the truth.
This transcript is a jumbled assortment of disconnected phrases and sentences.