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E84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast

0:00 Besties discuss the one-month hiatus 7:03 Markets update: Fed decisions, goals, macro factors, root causes 32:19 Earnings estimate skepticism, labor force, job openings 47:17 How startups should think about the next 18-36 months 56:20 Crypto collapse, next shoe(s) to drop 1:08:41 Russia/Ukraine endgame, escalation, scrutinizing US alliances, sanctions failing 1:33:12 Will 2024 be Biden vs. Trump? Could it be DeSantis vs. Newsom? Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://www.google.com/finance/quote/SPY:NYSEARCA https://www.google.com/finance/quote/.DJI:INDEXDJX https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html https://www.longtermtrends.net/home-price-median-annual-income-ratio https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html https://www.reuters.com/business/energy/us-talks-with-allies-russian-oil-price-cap-says-yellen-2022-06-20/ https://www.xe.com/currencycharts/?from=RUB&to=USD&view=1Y https://www.wsj.com/articles/inflation-bls-price-checkers-who-determine-cpi-11652132333 https://www.chicagofed.org/research/dual-mandate/dual-mandate https://data.oecd.org/leadind/consumer-confidence-index-cci.htm https://www.rasmussenreports.com/public_content/politics/top_stories/right_direction_wrong_track_jun20 https://thehill.com/policy/finance/3525909-56-percent-in-new-poll-believe-us-is-in-recession/ https://www.linkedin.com/pulse/reducing-inflation-come-great-cost-stagflation-ray-dalio https://fred.stlouisfed.org/series/CIVPART https://tradingeconomics.com/united-states/job-offers https://www.socialcapital.com/ideas/2021-annual-letter https://techcrunch.com/2022/05/10/tiger-global-hit-by-17b-hedge-fund-losses-has-nearly-depleted-its-latest-vc-fund https://www.coinbase.com/price/bitcoin https://www.coinbase.com/price/ethereum https://www.coindesk.com/business/2022/06/17/three-arrows-capital-confirms-heavy-losses-from-lunas-collapse-exploring-potential-options-report https://www.ft.com/content/19c27ae1-ae72-4668-b3a9-162adc27dffc https://decrypt.co/103489/solend-whale-108m-loan-nearly-crashed-solana https://www.justice.gov/usao-sdny/pr/former-employee-nft-marketplace-charged-first-ever-digital-asset-insider-trading-scheme https://www.ft.com/content/4e211784-83eb-49a2-ba39-8976345a88d5 https://www.washingtonpost.com/world/2022/06/10/ukraine-ammunition-donbas-russia/ https://www.americanpurpose.com/blog/fukuyama/why-ukraine-will-win/ https://www.bloomberg.com/news/articles/2022-03-02/london-listed-russian-stocks-erase-570-billion-in-two-weeks https://www.bloomberg.com/news/articles/2022-06-20/ruble-soars-to-seven-year-high-in-challenge-to-bank-of-russia https://www.cnbc.com/2022/06/23/russias-ruble-is-at-strongest-level-in-7-years-despite-sanctions.html https://www.wsj.com/articles/u-s-push-for-exceptions-in-europes-sanctions-on-russian-oil-gains-traction-11655913796 https://abcnews.go.com/International/wireStory/correction-germany-nuclear-shutdown-story-82051054 https://www.bloomberg.com/news/articles/2022-06-23/catl-unveils-ev-battery-with-one-charge-range-of-1-000-kms https://nymag.com/intelligencer/2022/06/why-ron-desantis-can-beat-trump-in-2024.html #allin #tech #news

Chamath PalihapitiyahostDavid FriedberghostJason Calacanishost
Jun 23, 20221h 41mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

All-In crew reunites, dissects markets carnage, crypto crash, Ukraine stakes

  1. The hosts open by airing internal drama about equity splits, control of the show, and the failed attempt to turn All-In into a larger media company, ultimately confirming they remain equal 25% partners and will keep it as “just a pod.”
  2. They then dive into macroeconomics: how years of quantitative easing and stimulus created massive asset bubbles, why inflation is now entrenched, and why they expect a long, painful adjustment across stocks, housing, private equity, and labor markets.
  3. A major segment focuses on crypto’s collapse, over-leverage, alleged grift around token deals, and the regulatory and legal reckoning they believe is coming as billions in retail losses attract prosecutors and lawmakers.
  4. They close by critiquing Western policy on Russia/Ukraine, energy dependence, and China’s strategic gains, and game out likely 2024 U.S. presidential matchups while taking frequent shots at Biden’s performance and Trump’s viability.

IDEAS WORTH REMEMBERING

5 ideas

Expect a long, grinding bear market rather than a quick rebound.

Chamath argues that ~$30 trillion of excess global liquidity pumped in since 2008 must effectively be unwound, a process he expects to take 2–3 years with choppy markets and multiple ‘shoes to drop’ across asset classes.

Startups should plan for 3–4 years of runway and take painful cuts now.

Sacks relays growth-investor guidance that capital availability could drop ~75%, meaning founders who only have two years of runway may be forced to raise in the depths of a recession on terrible terms—if they can raise at all.

Crypto’s crash reveals massive leverage, structural grift, and legal risk.

They describe crypto as a ‘liquidity sponge’ that soaked up cheap money, fueled by token schemes where investors flipped early allocations; now that prices have collapsed, they expect aggressive enforcement actions and lawsuits.

The Fed’s slow response to inflation has forced it into overcorrection.

Friedberg and Sacks contend that the Fed kept buying bonds and holding rates too low despite clear growth and early inflation signals in 2021, forcing today’s rapid hikes that risk both recession and policy overshoot.

Founders are intellectually aware of the downturn but behaviorally in denial.

Sacks notes a disconnect where CEOs say they understand the macro risk yet still plan to ‘out-accelerate competitors’ instead of taking deep cuts, making only 10% reductions that he calls “just a performance review,” not real medicine.

WORDS WORTH SAVING

5 quotes

We’re at the beginning of the beginning of something that just fundamentally has to take some amount of time to work its way through the system.

Chamath Palihapitiya

Three to four years is the new two years of runway… If you try to raise in a year, you’ll be in the middle of a recession and investors will have all the leverage.

David Sacks (relaying Coatue summit advice)

Crypto is like a liquidity sponge. It sucks up excess liquidity when money is free, and now that sponge is getting wrung out.

David Sacks

We just had $2 trillion of money taken from retail [in crypto]… governments really hate it when retail investors lose money—watch out.

David Friedberg

We allowed our largest competitive frenemy, China, to drive their entire economy at a 30–40% discount to what we have to pay… this is not how you preserve the reserve currency of America.

Chamath Palihapitiya

All-In Podcast ownership dispute and decision to remain equal partnersOrigins of current inflation: quantitative easing, stimulus, and Fed policy errorsAsset bubbles and market outlook: stocks, housing, private equity, and laborStartup funding environment, valuations, and runway strategy in a downturnCrypto market crash, leverage unwinds, token grifts, and looming regulationRussia-Ukraine war, sanctions design, European energy dependence, and ChinaU.S. domestic politics: Biden’s prospects, DeSantis/Newsom 2024 scenarios

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