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Recession Expectations and Stock Rally
00:10:10
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| Hey everybody, today in the Charlie Kirk show, a rather comprehensive financial episode here about the economy. | |
| If you have any anxiety about the economy, this is the episode for you within two incredible experts, Maria Bartaromo and David Sachs, the mastermind behind PayPal, one of the masterminds behind PayPal, alongside Peter Thiel and Elon Musk. | |
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| We go. | |
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| There's just so much economic uncertainty right now. | |
| I'm getting text messages from people all across the country, and there is a lack of clarity. | |
| There is a lack of understanding of what is happening in the markets, what's going to happen next. | |
| And the best economic conditions are ones that are predictable. | |
| This is far from predictable. | |
| It's chaotic. | |
| It is uncertain. | |
| It is incredibly fragile right now. | |
| And it's well known. | |
| I mean, people are experiencing it. | |
| They're seeing it. | |
| Let's play some tape here right now. | |
| Let's play CUT 27. | |
| NBC talking about inflation hitting a record high. | |
| Play Cut 27. | |
| Year over year, these are the money ball numbers. | |
| Year over year headline, 8.6. | |
| 8.6. | |
| A new cycle high usurping March, which was 8.5. | |
| That was the highest since 1981. | |
| Now 8.6 continues to be the highest since 81 because the comp there is 8.9 to 11.8%. | |
| And if we look at year over year core, also hotter than expectations, up 6%, following 6.2%. | |
| Now, no one has their finger more to the pulse of what's really happening in the markets, what's happening in the economy than the legendary Maria Bartaromo. | |
| Maria, welcome back to the program. | |
| Hey, Charlie, great to see you. | |
| Thank you, you too. | |
| So help kind of us laymen understand what you think is happening right now. | |
| It's very confusing. | |
| More dollar bills in circulation than ever before. | |
| The markets are tumbling. | |
| What's your take? | |
| Yeah, I think it's pretty much you go back to the very fundamental definition of inflation. | |
| Like you just said, too many dollars chasing too few goods. | |
| And this was the threat when the Democrats started pushing their spending plan at the beginning of Joe Biden's presidency. | |
| We all know that he signed the COVID relief package in March of 2021. | |
| And at that time, when he first entered the White House, inflation was at 1.4% in January of 21. | |
| So little by little, it has gone up and up and up with all of the spending. | |
| They tried to push through a $5 trillion Build Back Better agenda. | |
| And that also stoked the expectations of more money. | |
| But I would say, you know, and then the infrastructure package in November of last year. | |
| And then, of course, on top of, you know, once we got to like almost 8%, 7.5% inflation, then Russia invaded Ukraine and added to it. | |
| I would say one worry that I would have right now is I don't think we've seen the peak. | |
| I don't see any evidence of the peak because when you go back to that COVID relief package, you see that there are hundreds of billions of dollars that have gone to states that have not been appropriated yet. | |
| So they're still going out. | |
| And so you're still having the same situation. | |
| You also have not seen the peak months for gasoline. | |
| That's the driving months of July and August. | |
| So I think we've got a little bit of upset to come. | |
| So there's a huge, I don't want to get too wonky, but I think that our audience should know about this. | |
| Can you talk a little bit about the bond market losses and how that plays into all of this? | |
| I mean, there's been a massive sell-off in the bond market right now. | |
| And that sometimes can be a harbinger for things to come. | |
| Can you talk a little bit about that? | |
| Absolutely. | |
| Look, the bond market has seen prices decline. | |
| And when prices decline, yields go up. | |
| And we're seeing yields go up on the expectation that rates are going to continue to stay elevated. | |
| When you have a differential between the two-year yield and the 10-year or the 30-year, it's called an inverted yield curve. | |
| And when you have in the past seen the inverted, when the yields become inverted like that, where one is much higher than the other in terms of the rate, that indicates that a recession is at hand. | |
| I personally would say we're probably in a recession right now. | |
| We know that we already had a contraction in the first quarter, 1.5% lower. | |
| We'll get another revision to that. | |
| Then the other day, the Atlanta Federal Reserve predicted that there will be no growth in the second quarter. | |
| They said 0.0% for the second quarter. | |
| So it's probably going to be a contraction. | |
| So we probably are in a recession right now. | |
| And that is why markets have been really so weak. | |
| The market, obviously, the stock market down 32% on the NASDAQ year to date. | |
| You know, I mean, double-digit declines for the Dow and the SP as well. | |
| And I think what you've got happening here is a sharp slowdown as a result of inflation. | |
| So you've got bad policy resulting in bad outcomes of high inflation and inflation cutting into our purchasing power. | |
| So, you know, one issue is that earnings estimates are still too high. | |
| So, you know, you've got lots of analysts out there and they make predictions about earnings. | |
| And that is how stock prices are priced. | |
| That's how stocks are priced. | |
| Because if you think a company is going to make XYZ in earnings, then you can say, okay, well, I'll buy that stock based on what the potential for earnings are. | |
| But those estimates are too high. | |
| They have to come down. | |
| And that's why we may very well see further declines in this market long term. | |
| Having said that, we're already seeing some sizable declines year to date. | |
| So we could see a little bit of a rally over the near term. | |
| But I would sell into it because you still have the broader macro story that is weakening with the Federal Reserve raising rates into a weakening economy. | |
| You know, you look at the mortgage market right now, the mortgage rates right now, 30-year fixed rate mortgage, 6%. | |
| Lenders are, you know, are looking at 6%, 6.25%, even though it hit last week, 5.7%. | |
| That is called demand destruction because a homebuyer goes into the market, they say, okay, I want to buy a home. | |
| They see this, they're getting sticker price from the price of the home. | |
| And then they say, wait, I want to get a mortgage. | |
| It's going to cost me 6% for 30 years. | |
| And they say, you know what? | |
| I'm done. | |
| I'm not going to do it. | |
| I'll have to rent for a little while. | |
| That earnings are not there. | |
| And so that's what we're seeing. | |
| It's so interesting. | |
| On a micro, at least some people that work with us, they're moving into Phoenix to come work with us at Turning Point USA on the show. | |
| And they said, Charlie, I'm renting for the next year or two. | |
| They said, I'm not getting involved in this. | |
| And that's going to have ramifications and property values and other things. | |
| So, I want to ask you, Maria, in the couple minutes we have remaining, what would you do if you were the Treasury Secretary, the head of the Federal Reserve? | |
| Obviously, it's a hypothetical, but they really don't have much left at their disposal except saying, we're going to have to slow this down. | |
| I mean, they went so hard, so heavy, so quickly, lowering rates so abruptly, you know, in a reaction to the lockdowns and to the virus, it's almost as if they metaphorically emptied their clip, and now we have to almost live off of the declining sugar hide that was self-induced. | |
| From either from a monetary stimulus standpoint or a fiscal stimulus standpoint, is there anything left that can be done, or do we just have to accept the reality? | |
| We have to swallow the cough syrup and get used to it. | |
| No, we really need to ensure that the market believes there's enough oil and gas on the market. | |
| We really need to open the spigots. | |
| That is the way to fundamentally change the price of gasoline and oil. | |
| Because what you have going on right now is the Federal Reserve slamming on the brakes. | |
| They just raised rates 75 basis points, probably going to raise again another 75 basis points. | |
| That's slamming on the brakes. | |
| So if you're going to slam on the brakes, then you are going to stop an economy, potentially put it in recession. | |
| Monetary policy cannot do anymore. | |
| The Fed has its hand size. | |
| They can't do anymore. | |
| You've got to look at fiscal policy. | |
| And fiscal policy would be the simple supply-demand dynamics in the oil market. | |
| More supply equals lower prices. | |
| And that supply should come from America since we have so much of it. | |
| But the administration has a climate agenda and they're jamming it through every agency of government. | |
| And it's having real-life implications all throughout the economy. | |
| Maria, thank you for being so generous with your time. | |
| I love your Sunday show. | |
| It's phenomenal. | |
| It's a great summary of the last week and looking forward to the next week. | |
| And your commentary is very helpful today. | |
| Thank you so much, Maria. | |
| Thanks, Charlie. | |
| Appreciate it. | |
| Thank you. | |
| From cringing at the pump to getting an eye-popping check at your favorite restaurant, inflation is hitting us all where it hurts. | |
| Inflation is a thief and it really does hurt. | |
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|
Gavin Newsom's 2024 Presidential Bid
00:08:45
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| An interesting story that just popped up here. | |
| It's not really a story. | |
| Gavin Newsom just created a Truth Social account. | |
| So Gavin Newsom is a user now on truthsocial.com and has posted all about red state murders and all of that. | |
| I think it's a brilliant move by Gavin Newsome. | |
| It's very clear that he wants to run in 2024. | |
| I think Gavin Newsom will be formidable and Gavin Newsom will raise a ton of money. | |
| Gavin Newsom is much more likable than Kamala Harris. | |
| Course, he oversees a terrible state, $10 gas, all that stuff. | |
| We can go through it, murder rates, all the trans stuff. | |
| It's terrible. | |
| I will say, though, that Gavin Newsom creating a truth social account, I think, is a mark of political brilliance. | |
| It makes him look not like a woke liberal, that he's willing to go on conservative platforms and he's willing to engage in dialogue and interaction. | |
| He's also going to receive probably a fair amount of anonymous accounts that are going to be saying nasty things towards him. | |
| And he'll be like, oh, look at how terrible conservatives are. | |
| I come on their platform and they treat me so terrible. | |
| Kind of create the victim a little bit. | |
| It's a way for Gavin Newsom to kind of get in the headlines and say, look, I went on Trump's social media app. | |
| I'm willing to go anywhere. | |
| It's not dumb, I got to say. | |
| And it also frames the kind of Gavin v. Trump dichotomy that he wants for coming into 2024. | |
| It's also a very forceful move. | |
| I have to just say, if you look at if you're Joe Biden and you see this, there's no way that Biden, I think, will end up being the nominee in 2024. | |
| Whether he runs or not is besides the point. | |
| I do think that the Hunter Biden inquiry and criminal inquiry is a way to keep Joe Biden in his box to get him to step down and eventually have Gavin Newsome run. | |
| And Gavin, I think, is going to Gavin might run and other Democrats might run. | |
| But for most Democrats, I think they would be much more in support of someone like Gavin Newsom, because he sounds like Bain when he talks, than someone like Kamala Harris, who just cackles all the time. | |
| It's a very interesting move. | |
| Keep your eye on this. | |
| I know that's more of kind of an in-the-weeds type thing, but you don't go create an account on Donald Trump's social media application if you're not trying to make a point that you want to be a Democrat leader against the Republican eventual or the eventual Republican nominee. | |
| There's something to that. | |
| And I don't do not underestimate Gavin Newsome. | |
| I think he would be a far more difficult candidate for us to defeat, especially in places like Arizona. | |
| I don't think Gavin Newsom would resonate at all in Georgia or in Florida or Pennsylvania, but I think that Gavin Newsom would be very difficult to beat in a general in a state like Nevada, Arizona. | |
| I think we could bring it across the finish line. | |
| But Gavin Newsom is all the same radicalism that you've seen with Biden, even more so, with a little bit more charisma, an ability to be more articulate. | |
| But I think Michigan and Wisconsin, I don't think they would go for a California governor. | |
| That doesn't matter. | |
| The point is he'd raise an enormous amount of money, re-energize a lot of the Democrat groups in base. | |
| So keep your eye on this. | |
| Gavin Newsom creates a truth social account to try to frame himself as a Gavin v. Trump 2024 race. | |
| It's a little bit of a shot across the bow. | |
| If I'm a Democrat leader, I'm looking at this very carefully saying, huh, why would you be doing this? | |
| I would much rather run against Kamala Harris or Joe Biden than Gavin Newsome. | |
| I would just, I would, running against Kamala Harris, I think, would be very simple or easy. | |
| For one of those reasons, play cut 10. | |
| This is why I think Gavin Newsome has an opportunity to be the nominee in 2024. | |
| Sure looks like Gavin Newsome is starting to raise money for something national. | |
| Play cut 10. | |
| The vice president has been kind enough to take on managing this part of the portfolio for me, just as I did for when I was vice president for my former president. | |
| But it is something that, and I've asked her to personally do this. | |
| You can't understand a word he's saying. | |
| He's talking about the border. | |
| This is all happening, by the way, why The Atlantic, the press release propaganda arm of Lorene Powell Jobs, who is the widow of Steve Jobs, writes the article why Biden shouldn't run in 2024 by Mark Leibovich. | |
| Let me put this bluntly, Mark writes. | |
| Joe Biden should not run for a reelection in 2024. | |
| He is too old. | |
| It's what they say. | |
| Biden will turn 80 on November 20th. | |
| He'll be 82 if and when he begins a second term. | |
| The numbers just keep getting more ridiculous from there. | |
| It's not that 82 that's the problem. | |
| It's 86, one swing voter, said in a recent focus group, referring to the hypothetical age Biden would be at the end of a very hypothetical second term. | |
| In recent weeks, I've spoken to 10 official and unofficial advisors to the administration who have spent time around the president during these deranged and divided days in America. | |
| What has this been like to him, is what I've been asking essentially. | |
| How is he holding up? | |
| They say, for the most part, Biden is coping fine, you know, despite the fact there's 8.6 inflation, his depressed approval ratings, his vice president worse approval numbers, the looming wipeout in the midterms, and all other delights attending to Biden as he awaits the big rounded number birthday he has coming up in a few months. | |
| Let me take a pause here. | |
| I've said this before. | |
| It is a shame that the Atlantic is filled with a bunch of Bolsheviks. | |
| They're such talented writers. | |
| That's really, let me just, let me just reread this. | |
| They say, you know, for the most part, Biden is coping fine, you know, despite the 8.6% inflation, his depressed approval numbers, his vice president's worse approval numbers, the looming wipeout in the midterms, and all other delights attending to Biden as he awaits the big round-numbered birthday as he comes, as he's coming up in a few months. | |
| I mean, it's a very talented writer. | |
| The Atlantic has always been able to have a smug, just, I think, very effective way of capturing current events. | |
| It's just too bad. | |
| It's always to the left. | |
| So this continues. | |
| But here's another recurring theme I keep hearing, notably from people predisposed to liking the president. | |
| Quote, he just seems old, one senior administration told me at a social function a few weeks ago. | |
| So they're finally coming around to the fact that Joe Biden is kind of old. | |
| You know, Joe Biden signed a proclamation on World Elder Abuse Awareness Day. | |
| Quote, on this World Elder Abuse Awareness Day, let us recommit to delivering all older Americans the promise of a comfortable and peaceful life with dignity. | |
| I won't even comment on that. | |
| The Atlantic continues to write, though, that aside from reinvigorating the Democrats, Biden could instantly burnish his own legacy by opting out of 2024. | |
| He spared the country from more Trump in 2020, stepped in, calmed the thing down, and God love you for that, Joey. | |
| You should be thanked up and down the boardwalk, ice cream, cone in hand, sooner rather than later. | |
| All right, we'll table that discussion for the time being. | |
| You guys can email us your thoughts, freedom at charliekirk.com. | |
| I think Gavin Newsom is going to run for president in 2024, and either primary Joe Biden or Joe Biden will step aside for multiple reasons. | |
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QE, Inflation Reports, and Rate Hikes
00:07:10
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| With us to unpack what is happening in the private equity markets and more is the legendary David Sachs. | |
| David, welcome back to the program. | |
| Yeah, good to be with you, Charlie. | |
| So, David, what are you seeing in private equity markets? | |
| We talked to Maria Bartaromo about monetary fiscal pressures, kind of interest rates, but what are you seeing in the private markets? | |
| I'm very interested in that. | |
| Nothing good, unfortunately. | |
| It's, you know, this inflation report we had last Friday, the 8.6% inflation, I think really knocked markets for a loop. | |
| The basic reason is that prior to last Friday, you had this narrative that inflation had peaked. | |
| And the main reason for that is not that price levels were going down, but because inflation is measured on a year-over-year basis. | |
| And so as you started to lap bigger and bigger comps from the end of last year, because remember this inflation started last summer, it started around 5% by the end of the year. | |
| It was about 8%. | |
| So the theory was that as you started measuring against bigger and bigger numbers last year, the inflation rate would settle down this year and you'd start to see month over month decreases. | |
| That was the theory. | |
| And there was an inflation report, not CPI, but a different measure a few weeks ago where you start to see a month over month decrease and it looked like this lapping effect was starting to take hold. | |
| And so I think that was the prevailing narrative is that we were expecting inflation to peak kind of go down and settle down through the rest of the year. | |
| Friday's number a week ago really blew that up where you had this increase from 8.3 to 8.6% inflation on a month over month basis. | |
| So I think at this point we're in unchartered territory because since inflation has not peaked yet, since it's still increasing on a month over month basis, this is deeply unsettling to markets because we just don't know where we're at anymore. | |
| Why do you think the theory was so wrong? | |
| I mean, I was told by experts a year and a half ago that there will be no structural inflation, that our productivity technology will keep it down. | |
| How did the financial experts miss this so terribly? | |
| It's a good question. | |
| And I think it starts with the, you know, the Fed and the Treasury Secretary. | |
| Remember, last summer, we had this surprise. | |
| This is around May of last year. | |
| We had the surprise inflation report of 5.1%. | |
| And that was the first print where it indicated something was going wrong. | |
| And immediately, almost reflexively, you had Yellen and the Fed kind of come out in unison saying this inflation was transitory. | |
| That was the word that was used. | |
| I never heard the word transitory used so much last year. | |
| The right response in hindsight would have been for the Fed to stop QE immediately. | |
| They basically were continuing QE for another nine months after that original 5.1% inflation print. | |
| They actually didn't stop QE till the end of Q1, which was just a couple of months ago. | |
| QE basically means that the Fed is intervening in markets to buy assets like government bonds and thereby increasing the size of their balance sheet. | |
| The reason why they do that is if they're buying bonds, it actually means that the yield that U.S. T bills need to offer goes down because they're creating the demand to buy it themselves. | |
| If those bonds were being sold onto the open market and the Fed wasn't intervening, then the implication would be the U.S. government would have to offer a slightly higher yield on those bonds to attract new investors. | |
| So essentially, they were subsidizing interest rates and artificially keeping interest rates low through QE. | |
| And then on top of that, you had the Fed funds rate, which is the sort of the interest rate that the Fed gets to set. | |
| That was also extremely low. | |
| So there was not only no reaction by the Fed last summer, they actually continued with QE kind of pumping liquidity into the market for another nine months. | |
| I think that was a disaster. | |
| What they should have done was immediately stop QE. | |
| They could have waited a quarter before raising rates. | |
| They could have said, okay, this is alarming, but we're going to wait and see one quarter if it's transitory. | |
| But they at least should have stopped with the QE. | |
| Because they didn't, because they didn't do that. | |
| You saw in private equity, basically VC markets, a real asset inflation, effectively a bubble in the second half of last year. | |
| Now, all of 2021, in hindsight, the asset prices were inflated, but especially in the second half of 2021, you got this enormous asset inflation. | |
| You got this bubble. | |
| And that's going to cause a lot more pain than there needed to be. | |
| We didn't need to have that bubble in the second half of last year. | |
| Now that bubble has collapsed. | |
| The stock market is way down. | |
| That has trickled down into VC markets, private equity markets. | |
| And there's a tremendous amount of wealth destruction that's taken place. | |
| And then that eventually will trickle down into the real economy and we're going to have a recession. | |
| That's such a smart point, is that it's an unnecessary benchmark that was set. | |
| So people continue to go up with the inflating ballooning assets. | |
| And then that wealth gets destroyed. | |
| But it's actually worse than that because the dollar bill they have is also worth less, 10%, 12%, 15% less year over year. | |
| So you're at, you're on your balance sheet, you look 30% poorer if you bought at the top of the market where you are now. | |
| And then your dollar bill is also 15% to 20% less, depending on where you live. | |
| So about two minutes remaining, do you think it was political what the Fed did then? | |
| Because the way you explain it is quite honestly inexplicable to me how a group of experts could say, yeah, let's just keep on buying bonds. | |
| Like let's continue with quantitative easing. | |
| Like, sure, why not? | |
| I mean, do you think they were trying to create like a year-end sugar high? | |
| I mean, what is the possible explanation for this? | |
| I certainly don't have one. | |
| Yeah, I don't know exactly what their motivations were. | |
| It could just be that they're very slow to react. | |
| I mean, I've generally just been kind of unimpressed with Powell and Yellen. | |
| They just don't seem like that alert or sort of, you know, hands on the wheel, like, you know, alert to me. | |
| They've been sort of complacent and reactionary. | |
| So I don't know if it's just sort of like a competence issue or whether there's some other motivation, but I think the performance has been pretty bad. | |
|
Startup Culture in a Software Recession
00:08:03
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|
| But just going back a second to the point you were just making, I think there's a couple of different effects going on. | |
| So you mentioned inflation. | |
| That has a huge impact on the real wages of American workers. | |
| So when they go to the store and buy meat or buy gas, those prices are much higher and their wages have not kept up. | |
| So the wage inflation has not kept up with prices. | |
| So everybody feels poor because their wages just don't buy as much as they used to. | |
| But there's a separate effect that we were talking about, which is the wealth effect. | |
| That something like 14% of global GDP has now been wiped out. | |
| That's right. | |
| Global wealth through this stock market crash. | |
| So you combine those two things and everybody feels poor from the top level to the bottom level. | |
| That's going to result in less spending. | |
| And that's what's going to cause the recession. | |
| It's a completely unnecessary up to go down, basically, is what you're articulating. | |
| And I call it an economic sugar high. | |
| And you feel awful after it. | |
| You're demoralized. | |
| And so then people are less likely then to invest and to take risks. | |
| David, I want to ask you about the ramifications this could have for startup culture and for entrepreneurs, because I know personally a lot of wealthy people that were just thrown around money in the last year and a half, because if you had a deck, they would invest in it. | |
| Like, I am going to create the next Dropbox. | |
| I think we're going to see a kind of slow-motion car crash over the next six months of a lot of these bad investments that are just not going to be able to continue to survive. | |
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| Do you think that we are going to see a mass amount of, I don't want to say bankruptcies, but just kind of businesses folding because of kind of the faulty investment and as a byproduct of all these cheap dollar bills floating around the last 18 months? | |
| Yeah, I mean, I think there's what I call deferred mortality risk. | |
| Anytime that you have a lot of starts being created, a good number of them just aren't going to make it. | |
| That's just sort of baked into the cake. | |
| But it was so easy to fundraise over the last couple of years that not many companies ever kind of got that come up. | |
| And so you're able to, even the bad companies were able to raise quite a bit of money. | |
| So I think what you're going to see is that a lot of companies that never should have raised or, you know, basically should have been weeded out through our Darwinian capitalist process. | |
| They are now going to have a really hard time fundraising. | |
| And yes, you will see increased startup mortality over the next two years. | |
| So without going into specifics, but if you could kind of guide us through some generalities, where are you placing your capital right now? | |
| I think that would be interesting for people to know. | |
| I mean, you know, don't divulge any information you're not comfortable with, but just kind of general trends, you know, because people, we just got an email. | |
| They said, Charlie, I'm down 45% in the last six months. | |
| People are scared. | |
| They're uncertain. | |
| Like, what wisdom could you possibly give our audience on that? | |
| Well, there's the investing that I do kind of personally, and then there's the investing that I do professionally as my day job. | |
| And, you know, my day job is I run craft ventures. | |
| I'm a venture capitalist. | |
| And specifically, I invest in business software, basically software that startups sell to enterprises. | |
| And I still think that's a great place to be an investor. | |
| You know, it's not like software is going away. | |
| You know, software is becoming a larger and larger percentage of the cost structure of enterprises. | |
| And there's so many opportunities to create new kinds of business software. | |
| It just never, that opportunity is never going away because the business environment is always changing. | |
| So it will always need new kinds of software. | |
| So I'm bullish on the category. | |
| It's also called SaaS software as a service. | |
| There are lots of public SaaS companies out there. | |
| They have been beaten up very, very badly. | |
| If you look at the SaaS index, there's one called Wisdom Tree Cloud Computing, which is sort of an index. | |
| It's basically at its 52-week low. | |
| I'm not recommending that anyone necessarily buy it because I don't know where the prices go from here. | |
| But, you know, I tend to think that these SaaS companies, these cloud software companies, they're great businesses and they will continue to grow. | |
| And they're very high margin. | |
| And I think they will do well long term, but they've just been beaten up very badly because of the rising interest rate environment. | |
| That's good wisdom. | |
| So in closing, I just want to ask your thoughts. | |
| I know you know him. | |
| What do you think is going on with Elon and Twitter? | |
| There's been a lot of mystery around it recently. | |
| Any insight you could give to us? | |
| Well, I don't know anything that's non-public about this, but my interpretation of that town hall meeting he had to with the employees the other day is I would slightly revise upwards the chance that this deal actually happens. | |
| It was looking shaky the last few weeks because Elon's been complaining about the bot problem. | |
| But I tend to think the fact that he was willing to do the town hall meeting with the employees would be a bullish signal that he actually intends to close the deal. | |
| I totally and completely agree with that. | |
| And do you think the price of Tesla going down is going to impact this at all? | |
| I mean, just this is speculation right now, but he'll figure out a way to finance, I think, this no matter what. | |
| I mean, do you think that might be part of the calculus as well? | |
| Well, it's tough to say. | |
| I mean, I think it's clearly not helpful that his net worth has been cut by whatever percentage over the, you know, 30, 40, 50% over the last few months. | |
| But he still has the wherewithal to do the deal if he wants to do the deal. | |
| And he's not solely financing it. | |
| He has a number of well-heeled partners with deep pockets and big funds who've stepped up. | |
| So I think he still has the wherewithal to do this deal. | |
| It may not be as comfortable for him personally, but I didn't hear anything in the town hall that led me to believe that he is walking away from this or squeamish about it. | |
| I think maybe he wants to renegotiate the price, which would be appropriate if the bot problem is bigger than 5%. | |
| So it'll be interesting to see if that happens. | |
| If I'm on the Twitter board and Elon wants to renegotiate the price, I would be open to that because if Elon walks away, Twitter's stock price is going to crater because they're affected by what's happening in the market as well. | |
| In addition to that, the company is in chaos. | |
| So, you know, it'll be interesting to see where this ends up. | |
| I guess what I would bet on, although not a lot of money, would be that the deal actually closes and Elon maybe gets some price concession out of them. | |
| I hope you're right. | |
| I think it's good for the West for Elon to buy Twitter. | |
| Thank you so much, David. | |
| Great commentary as always, and thanks for sharing your wisdom. | |
| Thank you. | |
| Absolutely. | |
| Thanks, Charlie. | |
| See you later. | |
| Thank you. | |
| Thank you so much for listening, everybody. | |
| Email me your thoughts as always, freedom at charliekirk.com. | |
| We'll see many of you at Student Action Summit, tpusa.com slash SAS. | |
| Thank you so much for listening. | |
| God bless. | |
| For more on many of these stories and news you can trust, go to CharlieKirk.com. | |