Kathy Wood, Jack Dorsey, Henry Blodgett discussed on Squawk Pod

Squawk Pod


Today, on our podcast, fallout from the Facebook papers, how much did Zuckerberg know? And did he care? Insiders Henry blodgett. I think that we are in this collective moment blaming Facebook for all of our ills as a society. How best to handle the billionaires? Lawmakers inch closer to a wealth tax, but we're not there yet. Stony brook economics professor and former Bernie Sanders adviser, Stephanie kelton. The lowest hanging pay for fruit is enforcement. We shouldn't have tax cheats. We shouldn't have very wealthy people hiding and failing to disclose income. They ought to be paying tax on. Those stories plus, speaking of wealth, Elon Musk's net worth soars with Tesla's $1 trillion market cap. The target seemed way far off, and then we watched it just sort of happened and we watched the demand in the success of the company sort of match it. It's Tuesday October 26th, 2021, squawk pod begins right now. Our first headline today on the pod fresh off the Twitter. A dry topic, inflation, two high profile tech personalities, Jack Dorsey, and Kathy wood. Jack Dorsey, we all know Twitter, square, the beard, the diet. Kathy wood, here's a refresh. She is one of Wall Street's most closely watched tech investors. We see coverage over every move in her portfolio. Some have even ventured to say she's the best stock picker ever. Retail traders on Reddit love her two offering endearing monikers like Queen and ant Kathy. Her ark innovation ETF did 9 times better than the S&P and 25 times better than the Dow in 2020. She's famous for her big bets on innovation, Bitcoin, for example, and Tesla. Here's Joe kernan, Becky quick, and Andrew Ross Sorkin, breaking down the inflation, tweet storm. We've talked about Cathy wood in her views on inflation, but arc invest, the founder jumping in to the latest inflation debate, it started when Twitter CEO Jack Dorsey tweeted in his words, hyperinflation is going to change everything. It's happening. Kathy wood responded in 2008 O 9 when the fed started quantitative easing. I thought inflation would take off. I was wrong. Instead, velocity, the rate at which money turns over per year, declined, taking away its inflationary sting, velocity, still is falling. And a long series of tweets would went on to predict that once the holiday season passes, companies would face excess supplies in it prices would at that point unwind. When I was at salt with her, she actually made the case over the next 5 years, there's going to be enormous deflation. I believe we are seeing is going to be incredibly confusing, I think, to people. Just look at what's happened to the bond market this year. You know, against all expectations, yields have dropped from I think it was one point 7 5 at the peak in March down to one three as inflation expectations are exploding. We believe the reason for that is that we're probably when all of a sudden done and the dust clears from the supply chain problems and everything, we're probably in a highly deflationary world. But her argument about deflation at the time, and I don't know if you think it's reflective of what she's trying to say now was actually a function of technology. She thinks that there's going to be massive deflation. And then the question, of course, begs. If you believe that we're in a deflationary environment, of course, which seems at odds with where we are at least right now, then can you still be a Bitcoin bull, which of course she is, you know, arguing that it could be worth something on the order of $500,000 a coin over the next 5 years. I think there's two stories though. This is the weighing scale there. I don't know. Look, inflationary versus deflationary, there was a really interesting threat on Twitter, Preston fish. I got to know of it, and I've interviewed in the past. Points out that for things that we need, everything from housing to food prices to gas prices, higher education, healthcare costs, all of those things have far outpaced inflation in some cases. It's the things that maybe we want and that we like, things like technology that are certainly helpful that have been deflationary. And if you combine those two things, that's where you kind of run into problems. For those of us who can spend more, you have a better situation than the people who are in a position of spending all of their income on things they need. And I think there's long term sort of really neat things to think about like what the Internet did for price discovery and Amazon and B2B and you could see everything everywhere. And what technology did for things like air-b-n-b or Uber or wherever you're using everything, you sort of putting everyone on a plane that needs to go to a certain point. You can save all this money. And then you think of healthcare and the promise of sequencing the human genomes that sooner or later we're going to prevent things. Instead of people spending three weeks in the hospital for 10,020 $1000 a day, whatever it is, maybe we understand how to prevent and handle and there's prescription drugs if they work or the cheapest thing around. If you don't need chronic care. So there's all these long-term things that are great, but then near term that's just the way it is. We're printing money gangbusters. We aren't handling the energy situation very well. I don't think in this transition we're rushing it way too quickly. And then you look at all the other, all the other stuff. The supply chain, if we can't get toilet paper on the shelves, how do you make a prat and Whitney engine and aerospace components with chips? And I would really worry about things. My car's here. My car's here. What's in my car? No, longer. And I think it was like in one of those boats or something or stuck in the port over there where it couldn't leave. But that's why UPS earnings are going to be interesting today too. Just getting things placed. They will. Yeah. But yeah, so my own little supply chain story. It's easy. It's easy. I don't think it may not be over. I've got my car. Elon Musk is now the world's richest person by more than a $100 billion. This thanks to the recent surgeon Tesla stock at a net worth of $289 billion, Musk ranks higher than the market cap of 20 of the 30 Dow industrial companies. That's as a human being falling just behind Disney at $312 billion and ahead of Salesforce, Nike and Coca-Cola Tesla hitting a $1 trillion market cap yesterday on the news that hurts is ordering a 100,000 cars to build out its Evie fleets and a bullish analyst known for Morgan Stanley, putting the stock price to $1200 or at least that's their expectation. Test the closing up more than 12% on that day. Tesla now worth more than the next 9 largest global automakers combined. And this brings me to two thoughts, guys. One was sitting on the set with both of you in Davos Switzerland now four years ago when we heard about his compensation scheme, which if you remember at the time.

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