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@SteveKrak - Steve Krakauer
Incredible CNBC moment about GameStop - billionaire hedge fund manager Leon Cooperman trashes the “people sitting at home getting checks from the government” trading, and says “fair share is a bullshit concept... It’s just a way of attacking wealthy people. It’s inappropriate.” https://t.co/Yy73WpM9wN
Video Transcript AI Summary
The speaker discusses the current market situation, expressing skepticism about the valuation of GameStop and the overall market. They believe that the market will return to normal and that the risk curve is shifting towards riskier investments. They also criticize the concept of "fair share" in taxes, arguing against targeting wealthy individuals. Ultimately, they emphasize the importance of working together.
Full Transcript
Speaker 0: You're you're saying that
Speaker 1: the environment interconnected. It's all interconnected. The reason the market is doing what it's doing is people are sitting at home, getting their checks from the government, basically, trading for no commissions and no interest rates. And I'm not saying you're stupid. Show me a guy with a good record of consistently, and I'll show you a smart guy.
You know, Bill Parcells says it well. You are what your record says you are. I'm not damning them. I'm just saying from my experience, this will end in tears. You know?
GameStop is not worth $500. It's not worth 40. It's not worth 3. It's not worth 2. It's not even worth a 100.
It's not even worth 50. I don't know what the hell it's worth, to be honest with you. I'm not involved with it, and I hate to talk about things I don't know anything about. Well I would you do
Speaker 0: when you're talking about the you do know about valuing companies. Right? I mean, that's what you did for a living. You try to come up with a value based on what their projected earnings and growth prospects were were going to be. What's so interesting about this particular case is that none of this appears to be based in any way, shape, or form on the fundamentals that people like you and seasoned investors have grown up on.
So it's maybe a little harder to to accept
Speaker 1: and take. What I'm saying is it'll ultimately return to normal. You know, for the last 50 years, the 10 year US government bond is yielded in line with nominal GDP. So nominal GDP is a summation of real growth and inflation. So let's say you got 2 and 2 is 4%.
You're gonna lose a lot of money when the bond goes from 1 to 4%. Okay. The average multiple of the 15 is currently over 22 approaching 23. You know, we have pulled forward demand. You know, either you're into MMT and you say that deficits don't matter and and your people accept a negative interest rate over a period of time.
It just is leading everybody's being pushed out of the risk curve. Think about it this way. You know, it's 10, 15 years ago, the risk averse person bought t bills. He woke up and said or she woke up and said, I can't survive on 0. I'll take duration inflation risk and I'll buy t bonds.
The t bond buyers says, I can't survive on 1%, I'll buy industrial credits. Industrial credit person says, I can't survive on 2% or 3%. I'm gonna buy high yield. The high yield buyers says, I can't survive on 4% or 5%. I'm gonna buy CLOs, collateralized loan obligations which are more obscure.
They're less richly valued. Okay? And then the CLO buyers says, you know, the stock market's so hot. I'm gonna take 25% of my fixed income fund and put it into equities. And the equity guy is saying, I'm gonna buy Bitcoin.
So everybody is moving down the risk curve.
Speaker 0: And one
Speaker 1: of these days, not not today, not tomorrow, but one of these days people are coming in the risk curve. And I think we have lots of issues to deal with. We have enormous national debt to deal with and, basically, I don't think interest rates belong where they are. I mean, just think about it. We're borrowing tons of money and, taxes are likely to go up.
You know, just listen to it. Right now President Biden is tackling the easy things. All of us want to get the virus behind us. Right? So anything he does to battle the virus is universally welcome.
When he starts talking about raising tax and capital gains, raising tax on ordinary income, in a recent speech he's talked about fair share. I hate that expression with a passion. What does fair share mean? I've said in your program numerous times, basically I'm willing to work 6 months a year for the government and 6 months for myself, which means a marginal tax rate of 50%. You live in California, Connecticut, New Jersey, New York, you're already well past that.
Okay? And this fair share is a bullshit concept. It's just a way of attacking wealthy people and you know, I think it's inappropriate. We all gotta work together and pull together. Well And I think that that that's my view.
Speaker 0: Work together, pull together. Okay. Work together, pull together. I think a lot of people would, agree with that. I think there is a
@SteveKrak - Steve Krakauer
Rachel Maddow asks E. Jean Carroll what she's going to do with "Trump's money" to help "women's rights." Carroll says she and Maddow will "go shopping, get completely new wardrobes, new shoes...Rachel, what do you want, penthouse?" Her lawyer nervously says "that's a joke": https://t.co/5LAx5xU5Uy
Video Transcript AI Summary
Speaker 0 mentions using some of the money they will receive from Trump to support women's rights. Speaker 1 responds with humor, suggesting extravagant purchases and trips. They joke about fishing in France for women's rights. Speaker 0 clarifies it was a joke and expresses willingness to do something for women's rights. They conclude with a final question.
Full Transcript
Speaker 0: You've talked about using some of Trump's money that you're about to get, to help shore up women's rights. Do you know what that might be, what that might look like
Speaker 1: or Rachel. Yes. Tell me. I had such such great ideas for all the good I'm gonna do with this money? First thing, Rachel, you and I are gonna go shopping?
We're gonna get completely new wardrobes, new shoes, motorcycle for Crowley, new fishing rod for Robbie. Rachel, what do you want? Penthouse. It's yours. Rachel.
Penthouse and, France. You want France? You wanna go fishing in France?
Speaker 0: No? Oh, alright. Alright. Okay. That's a joke.
Although, if if me fishing in France could do something for women's rights? I would take the hit. You know? I would obviously take one for the team. Alright.
Let me let me as if as if you need persuasion in that regard. Let me let me finish with a final question.