PBD Podcast - We Raised The Interest Rates 7 Times This Year! | Ep. 235 | Part 1

Episode Date: February 11, 2023

In this episode, Patrick Bet-David and Home team will discuss: Reaction to FED increasing interest rates  Disney laying off 7,000 employees  OpenAi taking over Yahoo jobs  FaceTime or Ask Patrick any questions on https://minnect.com/ Want to get clear on your next 5 business moves? https://valuetainment.com/academy/ Join the channel to get exclusive access to perks: https://bit.ly/3Q9rSQL Download the podcasts on all your favorite platforms https://bit.ly/3sFAW4N Text: PODCAST to 310.340.1132 to get added to the distribution list --- Support this podcast: https://podcasters.spotify.com/pod/show/pbdpodcast/support

I Did you ever think you would make it? I feel I'm so close I could take sweetly the story. I know this life meant for me Yeah, why would you plan on the life when we got bett David value payment giving values contagious? This world on your panoras. We can't no value hate it. I'd be running home. You look what I become Okay, so Adam first of all you're supposed to apparently you're not supposed to be here Yeah, because people thought that was your last week last week People have been you know rooting for my downfall. Do you know?

Do you know how many, do you know how many, do you guys know how many instruments, messages I got, people going to sided. Hell yeah, pack out rid of them. And then other people going, you're stupid and loud. And I was like, good, good. And it was worth, we're live. It was supposed to be birthday, dry out week. Yes.

Adam is back from you were where you were Jackson hole Wyoming go check it out if you want to have an alternative to Aspen or Vale. It's all the rich people. I really know. That's where it's kind of a cultural place. Yeah, that's actually where Vinny would pinch bears. Yeah, yeah, because I'm poking him. I'm poking him in the muscles and inside joke Vinny was pinching bears this morning. Anyways, but by the way, so I was gone for missed, I think two parts, did I miss anything? Nothing crazy happened. Nothing happened when Rowan Martin or Jason Whitlock, none of the artists don't, anything, anything of those.

Love was in the air and you missed it. Definitely, absolutely. Good, good, good guys. Time to catch my, yeah. PBD's other side than me. Listen, let's try to be fearless today. This is all I want to do. Okay, let's try to be fearless today. This is all I wanna do. Okay, today's part.

I wanna try to kinda like, honestly, like straight up, I want us to kind of, if any of the stories scare you, tell me, I won't bring it up to you. If you're not comfortable with it. Okay. So let's get into it. These are some of the stories that we plan on talking about today.

Number one, that's not Ron. Is it ex-president Donald Trump post a photo of Florida governor, Ron DeSSantis allegedly drinking and partying with high school girls Okay, here we go governor voters a GOP voters are picking DeSantis over Trump in a hypothetical head-to-head matchup. This is CMBC Cuomo blast Biden over migrant crisis the southern States were right. Cuomo's going after Biden. What does that mean?

We have no clue. We'll talk about it. Fed official on board with more modest pace of interest rate Hikes, Jamie Diamond warns it's too early to declare victory against inflation. Google to beef up search on AI. Times got a lot of thoughts on that with alphabet. It's interesting what's going on there.

The layoffs, whether it's Disney 7,000, whether it's Arcaithywood, talking about the reasoning behind the layoffs, or Yahoo announcing that 20% of the folks are going to be laid off at Yahoo, was Nia goes after Elon Musk, okay? Musk fires a top Twitter engineer, people are curious on why that is taking place.

This guy named LeBron James became the all-time score, but we're not gonna cover that. We'll just recognize it's a big deal. Congratulations to the guy. High school students suspended and arrested for saying there's only two genders, Toronto Sun, catastrophic. Gay couple charge with raping,

Suns pimped them out to pet, is that the story you? Pimped them out, recorded it, and then made porn, and then yeah Is this the they're going there they got nine But I haven't I have an opinion on what should really happen to the audience are pouring into Nevada and people in Nevada are not Happy about it and then at the end maybe we'll make some predictions just Nevada have stayed income tax and look into that yeah There's a benefit

So anyways, by the way something happened with O'Keefe. I know you're looking into the story. We'll talk about O'Keefe as well on what happened. But why don't we go right into the economy? Page five, if you want to go into page five, first story is going to be a, I believe it's a Reuters story. Let me see if I can find a beneficial story. Yeah, let me get to it.

Okay, here we go. Fed officials on board with more modest rate hikes, this is a Reuters story. According to Fet officials, more interest rate hikes are expected as a central bank, AIMS tool, Kool inflation, New York Fed, President John Williams stated

that moving a federal funds rate of between a half a point, I'm sorry, five points to five and a quarter seems a very reasonable view of what we'll need to do this year. However, he also noted that the Fed would probably be able to make a take smaller steps relative to the pace of past tightening campaigns. Jerome Powell added that if we continue to get, for example, strong labor market reports or higher,

higher inflation reports, it may well be the case. We have to do more. Okay. Williams also emphasize importance of monetary policy to get into state levels We'll strain that out. Okay. Anyways, um, Tom. What are your thoughts when you hear a story like this? Based on what Powell is saying and Last month 517,000 job report new jobs, which is a good Number and then we're going to talk about the layoffs here in a minute. What do you think is going to be happening with rates here? Wow. There's a whole bunch of things done, Pat.

Care. First of all, we can talk about the jobs really, really fast and about how some of these jobs for people getting back to work after COVID. And it's a lot of hospitality jobs that are in there. But when you get that report that the White House does a victory lap on down the street, Powell sees that and goes, I got to keep raising rates. This economy is too hot. So it's, it's, does the White House really want Powell to be reacting like that? And Powell's. It's important what you just said. It's important what you just said. So the more the numbers look better, the more he will increase rates. Because remember, what's Powell looking for?

Two percent. Inflation. He's looking for two percent until he can see two percent. He's staying up in the bedroom with the cheerleader. So we, you know, we can't forget the cheerleader. We can't forget about that. That's the best cheerleader. Yeah, shout out to the cheerleader.

Shout out to Jerome Powell. Mayor. Pounding the poor economy. But, so that's part one, part two, part two of this is what Powell is saying is, okay, I'm only going to go to quarter points and I'm going to stretch him out a little bit, but he's still raising rates. He's still raising. So what he's saying is, yeah, the economy now has a great point, is now got about 50% head and toward 60%. So it's still an F, head and toward a D,

but it's getting better. That's all pal is saying is I'm going to stretch it out, but I'm still raising rates. So rates are still going to be going up. Mortises aren't going to be going down. And what was very interesting, and I flipped you a text on this yesterday, is but Jamie Diamond is saying,

hey, we're out in out of the woods yet, and down the street at B of A, because Jamie's the woods yet and down the street at B of A because you know Jamie's JP working chase down the street at B and A their research yesterday was talking about the same charts that we talked about on the podcast almost a month ago about Savings and credit card debt and they're saying it's not gonna take much unemployment for this to be a very hard landing So we're not out of the woods yet, and I think that's what all of this is pointing to. Here's what's crazy. Do you know when is the last time? Do you know how many times we increased the rates last year, 2022, not including one we did this year? How many times we increased

rates last year? Six times? Seven times. Last year was seven times. Do you know what's the last time we increased the rates seven times in one year? Do you know what's the last time we did that? 19 or 18? Was that way? The total. You know what's the last time we did that? 19. Was that way? 205 or 205? 205 is the last time we increased the seven times. Okay. We did eight times, one time, which we increased at eight times in a year.

But so anytime the rates go the way they're going, what follows is unemployment. That's the Phillips curve. The Phillips curve says interest rates inflation high unemployment low. You flip inflation high unemployment low. You flip it inflation unemployment high inflation interest rates are low. So those things go against each other right. So the way it's looking right now if they keep pushing I know if any of this is something

you study very closely. If they keep pushing this unemployment is going to crash tremendously. By the way fun fact fun fact you ready for this. How many times you think we lowered interest rates the most in a single year? What is the record of the most times we ever lowered interest rate? What was the year and how many times was? I'd be so curious enough, you know, you're probably not going to get it right. So don't go to the year you're thinking you're going to go because it's economic expansion. It's a different year. What is the most times we lowered interest rates in a year?

I just want you to know before why you guys think I just went from fearless to fearful like right now It just happened. I'm fearful. What do you think? Was it 2008 when we dropped everything to a half a point and we dropped like five times now What is the most times we low interest rates in a year? Once I'm guessing this pure speculation was under Ronald Reagan Okay, so it was 2001. Okay, but then here's the question, how many times do we lower it? How many times do we lower it in one year?

In one year. It's a crazy number. Like I had to keep reading this article over and over and over because I couldn't believe it. Is it eight? Nine times? Was that the nine time drop? It was in 2001 and people are commenting right now because he googled it 11 times 2001 Yeah, that that crazy That was a nuclear winner that was a tough one session lower and lower and lower and back to back to back to back

So look, you know the the feds control what happens to the economy guy when you hear the saying drone pals The most powerful. It's not because he you know, it's just the stain. He really is, but right now everybody is trying to kind of get Powell to play along and Powell, the good thing about Powell, which is kind of weird. He's the guy that's the Fed Chair who was put in there by guy named Donald, and he's still there by guy named Joe, okay, which means he doesn't, he? Which means he doesn't favor the right,

he doesn't favor the left, he used to work for Carlisle group with Rubenstein, so to him, he's just saying, guys, I have, he's one dimensional, two percent, two yet there, he's gonna keep increasing interest rates, which is gonna be very weird on how bad. Now everybody now is saying, well, it's gonna be soft landing, it's gonna be soft landing,

it's gonna be soft landing. It's gonna be soft landing. You know what's a great thing when people say things like that? Paranoia disappears. You know what happens when paranoia disappears? The best opportunities come right after paranoia disappears. The best opportunities to things to buy is when people get cocky.

People start to get a little bit cocky getting about the fact that this inflation thing, this recession thing's gonna come by. Adam, what are you thinking? By the way, I just start to get a little bit cocky getting about the fact that this inflation thing, this recession thing's gonna come by. Adam, what are you thinking? By the way, I just like to get a running tab. This is something we should consistently do, Rob. Would you pull up the fear greed index with CNN with a typically,

oh, the monitor where the monitor is all right now, that just be good to kind of monitor the general. What do you think, Rob? We went from full on fearful 30 days ago. I think it's greed. It's a little bit greedy right now. I think we are. I would say we're in the greed index.

I'd say we're in the greed. Oh, look at that. Now we're getting a little greedy. We're getting greedy. I think it was at 60 something percent a week ago. So I don't know, we've moved out of the fearful state of the economy into a more greedy point. By the way, look at what you're saying right there.

This is very important. What Adam is saying, zoom in a little bit. Zoom in, look at one year ago, what was the score? Fear, everybody was scared. 33, a year ago, about a month ago, we were 51. So from 51, we've gone to 72, and a week ago was 76, which is extremely greedy. I don't know.

Interesting. How it is, it's significant. So is this greedy, meaning meeting like people like you know That they're the cause of the houses are going down and people are buying more buying more, you know You're no longer like staying tight 99 cents store. You're not going there anymore Oh really all wow it's the opposite of fear hold on guard let me get out there and explore a little fearful fearless Like people are fearless today. Today's fearland. Yeah, well, I think since you're you're kind of giving us a history lesson on the amount of rate interest rate hikes and lowering it I think it's important to note it's currently at 4.5% we're talking about the

Fed fund rate right and that's the the rate at which what commercial banks loan each other overnight money to match reserves as out that that's essentially what it is right Tom and then it's obviously the Fed uses interest rates and rate hikes to kind of cool inflation, stat for you. We talk about what mortgage rates were in the, like this for sale or no. And we should put it on for sale. No, I'm asking you two questions.

I was just looking at it. I was just looking at it. Everybody's saying you look like Maverick. You look sick on camera. You don't. But it's not for sale? No, it is for sale. You could buy it off my back right now.

For a... I've got a stream green right now. You got to try. I'm no longer fearful. For $3,000, my shoes are for sale. But anyway, just history lesson. We talked about how in the 80s interest rates mortgages were double digits.

Do you know what the Fed Fundrate was in 1980 when Ronald Reagan took over presidency? 20%. That's what banks charged each other to borrow money. 20% are you kidding me? It's at 4.5%. By the way, it went down to 0% in 2008 and then during COVID.

So these dramatic rate hikes and lowering the rates, this is essentially, this is what makes America tick, right? We get so caught up in politics and fuck Joe Biden, and fuck drop, and this, but this is the, we talk about drone power being the most powerful man in America. These rates are wildly different, and how does this affect you, this affects you with your mortgage,

with your loans, with your car loans, with what you're paid in student loans, with what your patent student loans, with it caused to borrow money, small business loans. These are the numbers you gotta kind of pay attention to. Yeah, so let me look at the credit cards for sure. It goes right next to the story here, to transition after a perfect timing for this. Jamie Diamond Warren's is too early to declare victory

against inflation. JP Morgan Chase, Jamie Diamond suggests that the Federal Reserve could raise interest rates, higher than expected if price pressure persists. His comments come, am it growing signs of inflation in the US economy, including the strong January jobs report, diamond says,

people should take a deep breath on this, what before they declare victory because a month numbers looked good. The hiring surge in January has complicated the feds fight to lower prices and tame inflation. Some of the, which stems from the imbalanced labor market, employers added a whopping 517,000 jobs, that's what I talked about earlier,

nearly triple what Wall Street expected. By the way, that is insane. Once again, like to talk about the timing was perfect right before stated union speech for President Biden, 517,000 jobs, they were expecting a third of that, okay? While the unemployment rate has dropped to 3.4%, first time since May of 1969, okay? May of 1969, the Fed last week voted to raise

its benchmark interest rates to 4.75 and signaled that more increases could come this year. So these are going together. Jamie St. Relax pump the brakes, don't celebrate too early, but then layoffs. Let's talk about the layoff stories, okay? So layoff stories, then you hear if you can bring up the Disney.

So Disney comes out and says we're cutting 7,000 jobs and slashing five and a half billion dollars in cost as it unveils vast restructuring. This is a CNBC story. This is said Wednesdays planning on re-organize into three segments. While also cutting thousands of jobs and slashing costs, the median entertainment giant said it would now be made up of three divisions. Disney Entertainment, which includes most of its streaming and media operations, ESPN division, that includes a TV network and ESPN streaming services, A, parks, experiences and product units. The only reason a person like Bob Iker would do that is because maybe he's planning

on selling one of the three who knows. That's the way you break it apart because to say, well, we're now three different. So, hey, if you want to buy one of them, well, we're kind of for sale. Again, I'm not saying anything. I'm just speculating on Wednesday during its quarterly earnings, call win investors. Disney also announced it would be cutting five and a half billion dollars in costs, which will be made up three billion dollars from content, including sports and remaining two and a half billion dollars from non-content cuts. Disney also said it would be eliminating

seven thousand jobs from its workforce. That would be about 3% of roughly 220,000 people it employs. That's a lot of people. Tom, what do you thoughts on this? Well, there's a couple of things going on here. First of all, if any of you out there has got some walking around money, you got a couple of billion dollars and you ever wanted to own ESPN, that thing is for sale. It's been bleeding subscribers for literally a decade.

And it's not getting any better. You've seen big money, celebrity commentators have been not renewed. They've trimmed, they've called the herd, as they say. And then on the other side of it, I dove into this and it turns out Hulu is doing okay. So Hulu is doing okay. They had some intermar, national markets on streaming, not doing so well. But this is basically Iger coming back to turn this into a business. And they really overhired in a lot of areas. They had a lot of international things. And then he's looking at this ESPN thing saying, what do I do with this? Because right now Hulu

and Disney Plus are really covering for ESPN on the streaming side, because Disney's got a great portfolio, a great offering, and the problem is ESPN is dragging it, and then parks are trying to make a comeback, and they've had all the controversy where we've heard about, oh, we're gonna raise the price in parks so that way, they'll be less people in line for everybody that finally goes to the parks.

Remember that, they were hitting that around the December. Hey, any holiday travelers to going, and then they've also got to, you know, believe it or not, it's very real. What's going on in Florida with the tax change? That's real. When companies go, you'll read about companies opening factories in places and they get a tax break from the state

where they build the factory or something. Automakers have made a ton of money. Alabama gave money to Mercedes and Tennessee gave money to Toyota, please open your factories here, employ some workers, help our local economy. And ESPN is kind of poked the bear in Florida. So you're seeing Bob Eiger do what the CEO of Disney needed to do, but he has the permission to do it

because he's coming back with an expectation for change. This would be much more difficult with an entrant CEO, suddenly saying, I'm gonna do all this stuff. So they bought what companies? Bob Iger's known, he was with ABC Disney for 38, 40 years, whatever the time, it's a great book. If you've never read the right of a lifetime,

sick book. We had all employers leader, it's a phenomenal book to read. The guys are beast. Like Bob Eiger is a beast. Okay, he's the type of guy that could have ran for president. He may one day do it. He's that capable. He's heavyweight.

So he bought Pixar, Marvel, Star Wars. What else did they buy? PSP and a big box. He owns Comcom, Ode's Comcom has $24 billion for the other part of Hulu. So do you think the buying spree was a little too aggressive when money was cheap or do you think it was the right move to go doing what they did? What years were there? They're not in the same time.

The timeline of when he bought all the different companies is a, it took him years to buy Steve Jobs's company. It took him years to go through, you know, so it was a lot of the good. A relationship with him and Steve Jobs, very interested in that relationship. Yeah, because originally Jobs was hated Disney, and then he was very upset at the way

that he'd Disney treated him, the guy that was before a Bob Iger, and he says, I just didn't like the way he was treated. Then Bob came in and says, would you mind having a meeting? No, and then finally it was open to the idea. Then they had the conversation. And eventually, when he sat down negotiating with jobs,

he kind of got the feel that he was ready and then jobs called him back and then boom, a deal was struck. And by the way, when jobs passed away, a lot of people thought his money was made from Apple. Yeah. He was the biggest shareholder of Disney, not Apple. He was the biggest single, biggest shareholder in Disney, not Apple. So was the biggest single, biggest shareholder in Disney,

not Apple. So for him, it was a lot of his network was increasing because of Disney. But here's a question for you. You said something, Sully Tom. You said Florida taxes, Florida taxes, right? The census vows to have Disney paid fair share of taxes. There's a new sheriff in town. This was a Fox Tampa Bay story of taxes. There's a new sheriff in town.

This is a Fox Tampa Bay story, right? There's a new sheriff in town, DeClaire Florida governor on the census during a press conference in Okola that's just the way it's going to be. The census proposed a bill that would keep a special taxing district in place, but given a new name and create five-person board

appointed by the governor, he insisted that this would allow for closer monitoring of the district without requiring tax payer to take on Disney's financial obligations they're not going to have their own government here wow what a thing for Disney to say Disney is going to pay its fair share of taxes and Disney is going to honor the debt however Florida Democrats argue that the bill is a political maneuver my dissent and does not address Disney's special perks or closure corporate tax. Loophole's a census also argues that closer oversight will give the state a more

accurate picture of Disney's land value and service efficiency. So this is a question for you, Tom. And then I'll open it up, you guys can banter. What's the likelihood? What's the likelihood that Bob Ike and DeSantis have had a private meeting already? Oh, very likely. 100%. Yeah. 100%.

Okay. And who's making the requests? Who's making the demands? There's a big difference between request and demands. Who's making requests? Who's making demands? I think Iger's making requests. DeSantis is making demands. I agree.

DeSantis is saying, you got to pay your property taxes and I demand you do it. Iger is saying, hey look, this goes way back to Disney building, all these jobs and bringing all this tourism. Every time you pay a little tax on a hotel room in Florida because you went to Disney theme park, Disney doesn't get that.

Florida gets that tax. So Iger is like, look at this economy that we've made for you in Florida, giving you all this tax, people buy food and come into Disney. We get the ticket to theme park. the economy that we've made, you know, for you in Florida, giving you all this tax, people buying food and coming to visit Disney, we get the ticket to Theme Park, you get the tax on food, lodging, car rental, all the things that they do. Come on, dude, please.

So he's making the request, and the Santa's the San, listen, I don't want this woke stuff, I'm going to tear this thing up, and you're going to pay your taxes, I demand it. Who wins? I think in the end, if you put this to the voters' Disney, if you put it only to the Florida voters, I don't think this is a winning argument for Disney. But here's my question. Him saying something like, you know,

less of the woke stuff, do you think Ron and Florida's is so big and powerful for that, like, especially the texting that Disney's gonna change their entire walk agenda to try to, you know what I mean, get into Florida because I just saw a cartoon that they put on Disney Plus Pat, I don't know if you guys saw that. It was like, it was a really, really racial type of,

like, do you think they're gonna, do you think that they'll change because of something like that? This isn't about walk anymore. This is path, walk. By the way, Biden is arguing and helping DeSantis. Every time he goes out, tax them billionaires make them pay their fair share.

Those kind of voices coming from Washington actually helped DeSantis because the average voter in Florida says, hey, you're right, maybe a long time ago, Disney got a tax break, but why aren't they paying their fair share of property taxes and things today? Yeah. I'll kind of allow you to really elaborate on the tax stuff. Here's

where I want to go with this though. You know, a wise man once told me, choose your enemies wisely. Okay. It's a great title for both. I think it's a great title for a book. So be careful. Look out of that coming soon. And I think Ron is pretty calculated. And again, I'm not getting into the tax stuff. I'm talking more culture wars and choosing your enemy wisely. And Ron won he won re-election, gave an entire speech. And like the the mic drop moment when he says Florida is where woke goes to die. And essentially he knows exactly what he's doing. He's sort of using Disney as the poster boy or the whipping boy for the woke agenda especially in Florida and Ron said okay How can I pinpoint business Florida woke agenda what company should I pinpoint this is pre-bob Iger by-biggers been CEO again now what three months six months max mm-hmm

And he said this is where I want to pinpoint my agenda This is exactly the type of company exactly the type of woke agenda that I'm gonna go after and it's working for him. I just don't know if at some point this is going to backfire, I don't know, but for right now it's definitely working for him. Yeah, so the Santa said, back in November 30th, when him and Bob Iger had a feud, he said we didn't drag them in.

They went in on their own and not only opposed the bill, threatened to get it repealed. They brought this on themselves. I don't care what a Burbank California based company says about our laws. Here's the thing. Go ahead, you're gonna say. I was just gonna say, I vividly remember

this is probably two years ago, you did an entire how-to on the difference between Florida Disney versus California Disney. And everything that was happening in Florida and free state of Florida, DeSantis, and versus what was going on California lockdown, Gavin Newsom, there were some stark differences. But I'm gonna tell you this, here's what I'm gonna tell you.

Obviously, we all know who DeSantis is, from the perspective of he's tough, he's strong, he's a leader, he's not going to compromise, you know, he comes across as an extremely valued based guy, all of this stuff. He's the type of guy that if you're in war, he would be the guy that would be call and shots leading, you visualize him as that leader. Doesn't fear, he'll stand up against anybody, right? But here's Bob Eiger, from my peel view of what Bob Iger is, point of view. I see Bob Iger being the Kissinger personality

that's willing to sit with anybody and negotiate talking to enemies and getting the enemy to be calm to speak with them in a reasonable manner without offending them. That's what I see Bob Iger, which means to me, I think this would be pay-per-view type of conversations if it was public talk that you can see the Santas and Iger having an hour, two hour meeting.

I think it's great for television, be great television to see those to go at it because it's two different style of getting things done. And they're both very, very effective. The Santis is set with heavy weights. But Bob Iger is also set with some real heavy weights over the years. So one is free. Business and political.

Exactly. You got the free market heavy weights. You got the other set which is political heavy weights. So anyways, we're going to see what's going to happen here. But that's Disney layoffs. There's more to it layoffs. You got Yahoo announcing the fact that they're laying off 20% of their staff by the end of the year,

beginning this week, this is also CNBC story. Yahoo will lay off more than 20% of its workforce by the end of 2023, eliminating a thousand positions this week alone, private equity firm, Apollo Global Management acquired 90% of Yahoo from Verizon in September 2020, and the company had about 10,000 employees at the time Axios reported a more than 1600 workers will lose their jobs in the latest cuts suggesting the company's current head count is closer to 8,000 employees. The layoffs are part of broader effort by the company to streamline operations in Yahoo's

advertising unit. Yahoo for business segment strategy has struggled to live up to the high standards across the entire stack. According to Yahoo spokesman, given the new focus of the Yahoo, Yahoo advertising company, we will reduce the workforce of the former Yahoo for business division by nearly 50% by the end of 2023. So here's the thing, how much of this Tom, okay, with Yahoo and with Disney and with Microsoft, not Microsoft, with Apple and with Amazon and with, you know, all, how much of it is layoffs because of interest rates, inflation, economy, and how much of it is because Disney roll youly screwed up, because Yahoo is on its way down.

It's been going down for a while, whether it's a good economy or bad economy Yahoo had a shot 15 years go to dominate the marketplace. They missed their mark Yahoo could about Twitter for six billion dollars. They Yahoo's made so many bad decisions over the last years They're a perfect book for a case study any Regular professor from any business school can do a case study on yahuwa 55 things not to do there are picture perfect story for that company but how much of this is bad mistakes how much of it is to bad economy people are tightened up i think this is eighty percent economy and then twenty percent we're

getting a window into what's happened at companies remember when the economy goes down and the layoffs start happening, for those of you listening and you sit there, I see layoffs all the time, have you ever had a situation where you were cleaning out your closet, you're gonna give a few things, maybe a goodwill, salvation army,

and all of a sudden you clean a bunch more stuff out of your closet and you're really organizing it and you drop some things off for charity and you feel pretty good about it. Whenever the economy goes down, corporations have the same opportunity to kind of clean out part of the garage. So while the news is bad, make all of your moves.

Follow that, when the news gets bad. Don't just lay off people, if you've always, hey, well, you know, you know, the kind of couple of projects Harry would like to write off. I've got a couple of things we're not sure about. Clean out the garage. This is 80% economy affecting, and 20% people are cleaning out the garage

like right now Yahoo's taking the opportunity. If Yahoo was still public, their ticker system would be W-L-Y what's left of Yahoo. They are just a shell of themselves, private equity bought it, to squeeze out what's left of the advertising money that comes out of Yahoo, and they're making a buck on that, but it's a shell of itself, and they're making a buck on that, but it's a shell of itself.

And they're using the opportunity to cancel some things and do this in line with everything else. So this is 80% the economy and 20% bad decisions. And Google saying, oh, we hired too fast. Now we have to trim it back. That's what they said last week. That's a form of cleaning out the closet. And then take a look at this. Remember when everybody said, oh, this is just a tech thing.

This is just tech layoffs. Remember that? Yep. The number of companies that have made layoff announcements is now slightly more than 200. Holy. Two hundred companies or no, no, no, companies have announced layoffs. And that's like more than 100 layoffs. There's been, now the tech companies are leading with 200 companies that have that have laid off more than a companies that have laid off more than 100 people or more is 200 of them right now. That's a real number. These are what we know.

But what he's saying is companies that have laid off more than 100 people. That's the number. Yeah. And now the headlines are coming out of 8,000, from didn't see, 15,000 from Google. Those are big numbers. I mean, that's like, you know, you take 15,000, that's like laying off a university. There's universities, 30, 40,000 people.

Let me ask you a, you mentioned that Google, Yahoo, had an opportunity to buy Google. Is that what you said? Yahoo had an opportunity to buy, yeah. Yahoo, it's had an opportunity to buy everybody. What year was that do you recall? I don't know for I know they had a chance at buying A Twitter for six billion, but Google stories a different story you can see it right in 1990 Larry pages are given founders of Google expect approach Yahoo to sell Google for one million dollars Oh my god, no, it's true.

And they went back. $1 million for Google. Yahoo. I would buy Google right now for all the money I have. I don't even have that much. Well, yeah, I have what? I would buy. I would buy.

I would buy. I would buy. I would buy. I would buy. I would buy. I would buy. I would buy. I would buy.

I would buy. I would buy. I would buy. I would crazy. It's crazy. It's crazy. So, I, like, let me take you back in time. We all remember, it was around 2000. Dude, I remember in the late 90s, literally asking my buddy, who was like a tech nerd at the time, I go, hey, Jeremy, what's the difference between the internet and email?

He's like, oh, you're, dude, you're talking about the late 90s, midnight. Nobody knew. Like, we, we think about, oh, the attack and social media. And big tech, it's like, you're aging yourself, bro. I'm 100% you have to state 39. First of donut, now this.

I full on admit that I was alive in the late 90s. I was, I don't know, despite contract, I believe, not a vampire. We were just selling it. But it was your third and ninth birthday, and then you go say that. Third, yeah, thanks a lot. The third time.

But I just, I'm using this as an example of how Yahoo was like a leader or a thought leader, a business leader at the time, and now they're sort of like a joke. I mean, they all started a trillion dollar. I remember at the time going to search information on the internet and I went on to Yahoo.com. This is in the early 2000s. And I remember a friend of mine goes Yahoo, use Google. I said Google. It's a Yahoo guy.

And the guy goes, Google, and I go, have fun with your Google buddy. I'm a Yahoo guy. Talk about getting it wrong. And I remember these conversations, because right now it's like, just Google it, Google it. How often do we say just Bing it? Just duck duck, go it. Just Yahoo it. It's not a thing. It's just Google it. Yeah use the Google machine

But just to let you know how the mighty have fallen Yahoo was the company in the early 2000s. It was it was all it was all Yahoo But well a path how much how much percentage of all those time do you guys think remember we talked about the last podcast Amazon all these they're all laying off How much does that to to do with AI? And now the AI's taking some of these jobs that these people are doing. It's not as, it's not significant right now,

but I mean, it has to do maybe some of it. I don't know. I don't know. By the way, let me just give you what Kathy would say. Here's what Kathy would say. She says, Arc invests CEO. Kathy would explain the real reason behind the tech layups.

This is her argument. According to stock, picker, and ARC invests CEO, Kathy with technology companies are cutting jobs as they harness the new AI tools and other technologies to increase productivity and provide new products and services. Wood States stated that these layoffs should not be viewed as a sign of technology sector being in disarray, but instead as a correction from over hiring during the height of the pandemic, more than 300 technology from including Amazon Apple zoomed Dell and IBM have seen layoffs in 2023 nearly 100,000 job cuts since the beginning of the year. The beginning of the year was just six weeks ago.

Five weeks ago, it's not like the beginning of the year. According to what AI is playing a role in the layoffs. As it provides new avenues for amplifying productivity, would even predicted that by 2030, Amazon will have more robotic employees than humans. So Vinnie, our AI expert, what do you think is causing? Please, because you're right. So tell us what AI is doing. Was I right?

I mean, AI, just think about it it because what was talking about it yesterday? I think it was on Rogen's podcast that the new update, the part four of the chat GBT is coming out. The way that they were talking with Lex Friedman, it's scary that in the next 10, 15 years, they're literally going to take over. And so it's going to ruin society because everybody's going to be unemployed. People are going to have over and so it's gonna ruin society because everybody's gonna be unemployed. People are gonna have the jobs and that pack.

I don't know about that. I'm just saying, that's what that, well think about that. I think it has to do with love. If right now you have somebody writing a story that I could easily just type in chat, ggbt, and then just tweak it a little bit, why do we need that human being doing it? You know what I mean? So, so you're right. I think the thing to put there is

the reaction. So for example, we can come up with content here. We can get Chad GBT to give us a script on what to put up there for what he call it. You know, how to respond to this. Somebody says this, how do you respond to that? And how do you respond to that? Okay, great. You can put that on there. There's no primes with that. We are enamored by human beings who independently can do things that others cannot do. We're enamored by that. Hollywood acting, if you can act the role

and get me to believe in the movie fences when you watch Denzel, you don't love me. I don't love you. You have the other, you see that. And but you've seen five other people do that part. That was done years ago by the famous legendary actor who passed away, you know, he's like, how would it, what a great, you see Leo when he does the bear

on top of him before the 90-year-old girl. This bear was on top of that one movie. What is the movie's name? The Covenant, what is the name of the movie? What the, you know what I'm, what's his name, what Tom Harding? When he lives in the world. Oh I'm with what's his name but I'm hard when he lives in all the people oh yeah he cut the real or sick what he does covenant of it. I don't get what's the name of it. He wanted the oven and covenant. Yeah, by the way, you hear Tony Robbins speak and he's like moving an audience and he's you know

or you hear Tony Robbins and Tony Robbins. No, not let's forgive me for you know, that's a whole different story. I don't want that right now. By the way, you watch Steve Harvey Teller's story. Have you seen Steve Harvey Teller's story in movies? I got to tell you Steve Harvey is maybe one of the top 10 best story tellers in the world today. When he tells a story, you could find yourself seven minutes later saying, what the hell did I do just the last seven minutes? Yeah. So Chad GBT cannot do that because you don't see the emotion behind the machine. We are not turned on by machines. Have you ever physically been turned on by a machine and say, man, I'm emotionally attached

to this. This doesn't mean there's an entire billion out of industry with us. I was just going to say Rob. Rob should be a video once. Rob should be a video and I was like, are they on sale? Yeah, and Tom knows the economy's taking the time. Yeah, so. Look, the fear with technology has been around for a long time.

Yeah. And the one thing with us as we age, Vinny, and we start worrying about end of the world, and you start talking about these kids are lazy and they don't know when you start making comments like that, that's the first time of you getting old. I'm getting old, 100%. But here's my thing though, Pat, I'm talking about 20 years

from now, because mind you, we're not in the beginning stages. It's this thing is getting smarter, smarter, smarter. Pat, the robot, you know, I saw in China, they have wrote, they had, dude, I saw a fleet of these Chinese robots. And it's, oh, I went to a restaurant with Kelly a couple weeks ago. I'm not joking. They had like one or two servers. We ordered the food.

A robot came out with everything, gave us our food, gave me my drink, and I was like, can I get a refill? Yes. The thing left brought me my, I'm not, I'm not, I'm not, was this robot hot? I'm gonna tell you something right now. What was her name? Did you get her number? I don't know the name of it before I looked at Kelly and Kelly's eating she's having a thing that she's like I told you

There's a robot here. It's like a Korean one of the Korean hot pod I mean they're advanced bro, but my pat what a little it's a little car You know that you know roomba that runs around your house. I have one. I have one. I have a relationship with them single butt. Pat, sure a roomba that kind of has a little radar in it. So it doesn't run into furniture. It just kind of gets around with a,

with a big post on it and a platter on top. And you're, they put your food on it. No, but Pat, but Tom, when it dropped off my food, it kind of looked back to me and went, like it made like a noise. That robot was into me.

I think Pat is basically saying. When you get a Diet Coke refill. Yeah, I think Pat is saying that certain elements of humanity cannot be replaced. So friends, thanks. You know, we went to lunch a few weeks ago to a restaurant called Hooters. Yeah.

Shout out to our friends at Hooters. Hi, girls. I don't think there's ever gonna come a time that AI and robots are gonna make it called Rooters. Okay, like the robots aren't taking over Hooters. Hi girls. I don't think there's ever gonna come a time that AI and robots are gonna make it called Rooters. Okay, like the robots aren't taking over hooters. Oh, you should, hold on. I'm pretty positive.

You remember your Yahoo, your Yahoo Google situation? I'm talking about, you're gonna be an old man. You're gonna be an old man. I remember the podcast. I'm telling you right now, it's not gonna happen soon, but I'm saying it's happening because I think some of these jobs are going. Do you think, do you think, okay, so let's pull this

part of this? Cause I think there is fetishes. Like I had a, when you're in the army, you learn about a lot of weird things with people with fetishes, because when you're doing a late night guard duty, of course, you're done that before, you're like, hold it in, do it bro.

Hey man, dog, it's my fetish, can we keep this between, like, you know, at least be in order. Anyways, I'm not gonna get into specifics, but here's a part, fetish, you know, can we keep this with time like that least you know Anyways, I'm not gonna get to specifics. Yeah, but but but here's a part. Here's a part fetishes fine But I want I want to ask you this question. Let's let's say 30 years from now. Okay, you're 69 years old 30 years from now, however 70 you're gonna be 70 70. Okay, 30 years 30 years from now you're gonna be 70 okay You're at a restaurant. For like 75.

Fuck 74. Shut up, like we're doing like particulars, not tons of run-to-nobbs. You go to a restaurant, 70 years from now. You go, 30 years from you go to a restaurant, okay? And at this point, this restaurant is known for having the hottest robots in the world. By the way, technology is so advanced

that they are 100% scored in a way where what men think is beautiful, they look just like that. Their skin feels like regular skin. They have every feature a woman has. Yes. She comes and serves you food. Okay.

You flirt with her. Yeah, I know I am. Would you hook up with a robot? One hundred. One hundred percent. One hundred, I'm not gonna get a virus. I'm not gonna. But you're gonna have a feature though.

If they don't like you, that robot can cut it as well. If she doesn't like it. Bob it. It's gonna be like, oh, boom. One time you're going to. Boom. That, that age, that thing isn't thing is And well, no with the way technology

Yeah, yeah, I'm gonna be working on your dead well with the reverse agent code I might be but listen in 30 years Can you even imagine how hot like I'm not gonna lie? I saw are you gonna care like are you would you hook up with a robot? I have 100% bad with some of the videos that I've seen yeah 100% Vinnie would hook up with a robot Yes, I would and I've been years from now, and 30 years, I'm telling you guys, you're Yahoo Google, you're gonna change your tune. Yeah, I don't know. I don't know.

And 30 years, what these robots are all about. You know, consider me old school. I just kinda like hooking up with regular human women. You're saying that in 2020. No, it's cool, like, you're saying in 2023, in 2016, trust me, your tune is gonna change, bro. So that's it, you're leading the robot brigade of marketing to start banging robots.

I'm not saying bang robots, I'm saying I'm gonna be an old man by them, but what I'm telling you is the technology is gonna be ridiculous, because they're gonna look spectacular. I was doing something on the podcast, it was gonna be funny. I saw one of those ones that just sits on your couch. It looked ridiculous. The girl, it wasn't like robotic. Just wait 30 years, you see what's gonna happen.

Does it your face? You're like, wait, what's, you'll see. I'll show you one right now. You see that one we're half our heads missing. Here's what we got. How do we get here? We were talking about. I'd love to get a poll.

Yeah, not a question. He asked the question, he says, how much of this is AI? I said, here's what Kathy would said about it. Then I said, here's our AI expert Vinnie. And then he went talking about robot porn. And then we're here. And then we're here.

Later that same thing. Can I make one point about our friend, what are we gonna bring it back to the point? Yeah. I think, you know, we tend to forget. We just went through a worldwide pandemic for two years where it was like, what goes up must come down.

Money printing, inflation, insanity, lockdown, supply chain. We like, this was the global economy stopped for a full on year, especially depending on where you were in the world. And things are kind of restarting again. And Kathy said everyone thinks that technology sector isn't disarray, but here it is. Instead, this is just a correction from overhiring during the height of the pandemic. Kathy Wood, I never heard her name prior to 2000. She was one of

the darling investors of COVID. Okay. I'm going to ask you, Vinny. Does the name Eric Juan Ringabel? Eric Juan? No. Okay. He's the CEO founder of Zoom. He went from a relatively unknown man to arguably the most needed famous man in the world at one point, because he's the founder of Zoom. Now Zoom, it's like, yeah, so yeah, Zoom will be.

Face time, yeah. We're back in human interaction, right? What does Lincoln say, circulate amongst the troops, touch? So I think we're going for this correction I'm talking about is that we've gone from like completely relying on technology for two years. So like, let's just get back so normal.

And I essentially a lot of these layoffs are because of that. Tom, what do you think about this whole conversation about relationships with robots? I'm actually, I want to ask it in a most serious way possible. You, your dad was a rocket scientist. You're a guy that went through IBM's training. You're a guy that was a professor at Biolo,

Adjunct professor at Pepperdine. You've been all over the place. You've been in technology. You've been in IT. You've been studying, following this industry for a while. So you know the good, bad, and the ugly. Do you think it'll come to a point where people will be dating robots, and they're going to be replacing relationships, all that stuff?

Well, I have two very distinct thoughts on this. The first is, don't worry about the robots. It's just jobs are going to be different, and people are going to do different jobs. It's like when the saddle Tanner, a Tanner is a guy that works with leather, and when the saddle Tanner saw the first car, he's like when the saddle Tanner, a Tanner is a guy that works with leather. And when the saddle Tanner saw the first car, he's like, oh man, my saddle business is screwed

if this catches on, right? Cause he's making saddles for horses and all that kind of stuff. And these waves go through the economy and technology and advancement happen, the jobs are different. Point one, point two, if you go look back at the dawn of the last like five technology cycles, the internet, DVDs, by the way, you know what, drove multi-perspective DVDs, remember you could watch a movie and change a perspective on it.

Porn. Porn. And CES, Consumer Electronics Show, tried to keep it off to the side. Porn was took full advantage of VHS. They took full advantage of DVD. Porn talked about the internet and what happened there. There's always been an element where people use technology to fulfill vices. So I think that's gonna happen with robots and I think it's bad for relationships. I think it's bad for the human relationship but we've seen it happen before with technology. And Pat, think about this.

We're kind of joking around. I'm joking about it, but I'm gonna, I'm gonna, no, I'm freaking comedian. But what I'm saying is Pat, think about this. It's people like us, obviously we wouldn't. You guys, girlfriend's married, whatever, whatever. I'm not talking no, I'm freaking comedian. But what I'm saying is bad thing about this. It's people like us, obviously we wouldn't. You guys, girlfriend's married, whatever, whatever. I'm not talking about the average guy that just watches porn on their phone

and we're not paying for it. It's the guy that, you know, like they get the subscription, they're watching it, they're alone. Trust me, those guys, you give them the opportunity of a robot that's in the house that they can hook up with. And dude, what was that movie walking Phoenix?

You guys, it was just her. Her, it was Scarlett Johansson was just a robot that's in the house that they can hook up with. And dude, what was that movie, Walking Phoenix? Uh, you guys, um, it was just her. Her. It was, um, Scarlett Johansson was just a robot and his ear and he was had a relationship. Bro, wait till that becomes darkest most annoying movie. A annoying movie, Pat, but looking at it was horrible. It was just him. The top 10 worst movies I've seen and I love Walking Phoenix. He's one of my favorites, but I'm patting my whole cheap.

That movie was to make just her voice in his head that said walking on an office, he was a, they made like hallmark cards. We should make a version of that from like a low budget and we should call it he him. He did for it. It's just like don't do it. And it's you. Yeah.

Oh my God. That's so fricking. Hey Johnny. Yeah. What? What? I just, I can't, I'm trying to have a relationship with my ex. I don't know, by the way, the more I think about it, here's what you're making me think about.

So, okay, so porn was what, VHS. Yes. I'm trying to buy the original movie cover, sealed of Rocky 1 and this one auction, and Godfather, but the first one's VHS, okay. Can't remember VHS, it was DVD, right? And then from DVD. So porn VHS, you know, in the Army barracks,

it's got like a thousand porn VHSs on top of each other. And we say, this one's the best one. So then you go DVD. Then you're saving files on a computer. Then it went Napster. Then it's phone easy. What is the main site? It's called whatever the new porn sites are.

There's a couple of big ones. And then from there you're gonna go virtual reality. What you're doing after virtual, virtual reality is they're doing that. So maybe the next phase after virtual reality is gonna be where some guy's gonna have a robot. I'm gonna take a lunch break. He goes in his lunch break.

Where, why is your truck going up and down? Whoa, it's the end. Her. It's her. My V2-2-100, it's a, you know, 20-29 model. I just bought it for 17 grand. Huh? Huh?

Huh? Huh? What are you doing, buddy? How mostly attached are you? If it's a robot, I'm like, Hey, Pat, listen, I know you've had a rough week. Go on my truck, just make sure you're not too crazy. That guy's too, but like, like, here's a question though.

God, if, if will the optics change, if you know how right now, if somebody says something about his girl, he's gonna get up there. Forget it. But then maybe it's okay. It's a robot. I don't give, yeah, if you say your robot is a piece of, that's, I guess what, that's fun. She's, she's a whore.

Okay. Whatever. Are you gonna be offended by? How? No, no, no, no. I don't know. I'm concerned about this direction we're going with. She's she's a whore. Okay. Are you gonna? Are you gonna be offended by hell? No? No, no, I don't know. I'm concerned about this direction. We're going. I did in the pan. I saw a video I saw a video where the guys and this was I was somewhere in Asia. They were in the virtual stuff People are sitting there watching and the guys pumping this machine that set up as if I sort of got as a female But he's seeing a really hot person. You're kidding me. I swear to God.

What kind of porn do you watch? I wasn't porn, it was on duck, duck, go. Duck, duck, go it, bro. Oh yeah. I'm just saying, just mark my words. I'll probably be dead by then. You'll see what's gonna happen. Watch how this technology changes.