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The Prof G Pod with Scott Galloway cover image

Prof G Markets: OpenAI’s $90 Billion Valuation, FTC Takes on Amazon, and The Recession is Coming

The Prof G Pod with Scott Galloway

NOTE

The Natural Cycle of Recessions: Praying for a Recession

Recessions are a natural part of the economic cycle, and some argue they can be healthy. The speaker suggests that a recession would benefit young people by providing opportunities to buy stocks and assets at a reasonable rate. They also criticize the government's efforts to prop up the markets, viewing it as a transfer of wealth from the young to the old. The speaker emphasizes that economic strain can lead to a rebalancing of power. While they acknowledge the negative impacts of a pandemic, they consider a downturn in the NASDAQ to be even more tragic.

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Speaker 1
the thing. Recessions are a natural part of the economic cycle. When Jamie Dimon was asked, what is a recession? He said something that happens every seven years. So let's just look at probability. If effectively a recession is kind of you roll the dice and a six comes up, it's a recession for 12 or 24 months. And some people would argue recession is healthy. We've been rolling the die 15 times and it's never come up six. So quite frankly, someone your age should be praying for a recession that verges on a depression. Because here was what I had that you haven't had yet and that you need. In 2009, I was able to take the few nuts I had squirreled away and buy Apple and Amazon for, you know, 10 bucks a share and Apple is at 180 now. And I was able to buy Amazon at $4 a share on a split adjusted basis. And now it's at 140. There's constant paddling and life-saving procedures to keep rich people rich and people my age and capital owners rich at any cost by propping up the markets with deficit spending that you will pay the price for is nothing but a transfer of wealth from you to me. Because when you let stocks go down, when you let businesses go out of business, people coming into their prime income earning years, i.e. you, can buy stocks at a reasonable rate, can who knows, even buy a house that's gone into foreclosure and finally afford a house and who knows maybe if you go back to brooklyn culinary academy and give up on podcasting being an analyst when you can move in to cafe select which is an amazing restaurant that i don't think is going out of business in soho and lafayette but say a boomer owned it and there was a recession and he got fed and turned it back to the bank, you could move in and buy it at a great rate. The bottom line is catastrophe or economic strain, not even catastrophe, is a rebalancing of power from the old to the young. And we've decided that if 1.2 million people die, that would be bad, i.e. the pandemic. But if the NASDAQ went down, that would be tragic. So

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