Scott Galloway · 59:18
CNN is they get between 13 and $17. I don't know what Fox gets. So just to give you a sense... Oh, and let's talk about median household income.
Kara Swisher · 59:28
And cost of doing business. But go ahead.
Scott Galloway · 59:30
Yeah. You wanna reach wealthy people. Wealthy people are now responsible for 50% of consumer spending. They have more discretionary income. Right? Fox News, the average household... The median household income is $60,000. CNN, 65. CNBC, 85.
Kara Swisher · 59:48
Mhmm. That's not a Pivot,
Scott Galloway · 59:50
150 because So we get a very tech heavy, high paid it's pretty obvious why cable news... Fox is actually doing pretty well. But cable news as a whole
Kara Swisher · 1:00:03
Yeah.
Scott Galloway · 1:00:03
Is dying. It's literally dying. So Barry Dillard's saying he wants a new look and a new feel. What I would suggest is unless you can pick it up at distressed pricing and consolidate it with a bunch of other stuff, I think Barry's falling into the same trap that a lot of people follow into, and that is nostalgia is not a strategy. I don't think there's any I don't think there's any coming back.
Kara Swisher · 1:00:26
Really? Interesting. They're too expensive. I mean, you didn't even figure in costs. Our costs are basement compared to all their
Scott Galloway · 1:00:33
Oh, the gross margins? Yeah. I mean, then then it gets... It goes from ugly to worse.
Kara Swisher · 1:00:38
Yeah. What's interesting is there there... There's... It's a... It's still a great brand, and I agree with you about the romanticism. Mean, he happens to be, even today at his... He's much older, is still the best programmer around.
Scott Galloway · 1:00:53
He's been No. He's he's a he's a legend in the world of media.
Kara Swisher · 1:00:55
But not just that. I don't... I've never seen him think, like, oh,
Scott Galloway · 1:00:58
I do Yeah. But so is John Malone, and he hasn't been able to figure it out.
Kara Swisher · 1:01:02
I agree. I agree. But I'm just saying, I I I wouldn't, like, just say, oh, he's just being romantic. I... I've had discussions with him. He's got some great ideas, and I agree. It's a real problem. It's... I I would spin it off and see what Zucker and Dillard could do. Because I... Both of them, very good. I... They have a lot of ideas, and they bring in people who have great ideas. And what would you do with it? If if they said, here is this This is what you have, Scott. What would you do with it? I know you have CNN? Just an anathema to television. I know that. But I... It's an interesting... I think it's what he knows best, and it would be interesting. I think he would be an interesting owner. He's... He says it's not happening, but, but it's nice that he's bringing it up, I think. Well... Sorry. And by the way, speaking of our demo... Of our young demo, 42 means there's a lot of people on the very young side. A lovely young man named Evan last night. I was going into this party for Hank Paulson. He was like, I love Pivot. Say hi to Scott. And I was like... And and Amanda was like, that is a very young person. I get stopped by very young people, very old people, middle... Most much in the middle and very different people. And I really... Evan, I really appreciate all the nice things you said about the show, because we we like all our different fans. But you're right. An age thing is important, all kinds of stuff. Anyway, Barry, good luck. Alright. We're not gonna be buying it, and I won't go off on my craziness like I did with the post. Alright, Scott. One more quick break. We'll be back for predictions.
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— Predictions segment begins —
Kara Swisher · 1:04:00
Okay, Scott. Let's hear a prediction. Oh, one thing. I predict we're gonna have a great time at South by Southwest. Alright. That's my prediction.
Scott Galloway · 1:04:07
That's what you're predicting. Always. Alright. So my prediction is, essentially, I think the markets this year are gonna go down. I think I think we're Uh-oh. I think we're on the precipice of, like, a $10,000,000,000,000 wipeout. Woah. Really? Oh, yeah.
Kara Swisher · 1:04:27
Tell all.
Scott Galloway · 1:04:28
Well, not... And by the way, I get this wrong all the time. This is not financial advice. But I don't think it's from Iran. It's from what comes after Iran. And this is this is the chain reaction here. I don't think oil is gonna... I think oil is not gonna be at a $150, but it's gonna be it's it's gonna be sustainably higher. It's gonna be elevated through the rest of the year. And inflation in some markets reignites. The Fed can't cut rates. They're trapped to inspire the economy because they're worried about inflation. I think corporate earnings are really impaired as consumers stop spending because some of them will be paying $5 a gallon for gas, and their four zero one k will start to decline, and q two earnings season becomes bad. And then what CEOs do when things are sort of bad is they throw in the kitchen sink, and they'll make it look like a bloodbath just to get all the bad shit out. But the real contagion here is gonna be from emerging markets. I think there's a decent chance that Pakistan and Egypt default and as well as Sri Lanka and Bangladesh, dollar denominated debt, very energy dependent, very fragile economies because they all they all... There's this domino effect in those markets because they can't afford oil imports, and their dollar denominated debt just becomes unpayable. And then the real downward spiral starts. European banks holding that emerging market debt start announcing write downs. The foreign bank, Deutsche Bank, BNP Paribas, all hugely exposed, credit spreads blow out, and we get sort of a... Not this to the same extent, but we get an o eight style, which bank is next moment, except this time, it's happening while The US is fighting a war we started for no reason.
Kara Swisher · 1:06:22
It's an excursion, Scott. It's an excursion.
Scott Galloway · 1:06:26
Well, that's the mistake here. It should have been a special... It should have been a military combat operation. Instead, they've turned it into a war with no objectives. But, anyways, by August, the narrative ships ships from transitory war shock to holy shit. We may have broken the global financial system. The S and P is off 20 to 40% from its peak. Bitcoin goes to, like, 30,000. And, you know, and quite frankly, the only thing that probably goes up is canned goods and ammunition and Chevron.
Kara Swisher · 1:06:59
Well, that's a scenario. Happy South by Southwest.
Scott Galloway · 1:07:03
But but it's gonna start... The prediction's the following. It's gonna start... The contagion is gonna start in emerging markets that can't afford oil, and their debt is dollar denominated. It's just a toxic cocktail.
Kara Swisher · 1:07:18
Very accurate prediction, I have to say.
Scott Galloway · 1:07:21
And the problem is we've shot so many bullets with our debt and printing money that the ECB and the Federal Reserve doesn't have the same firepower to try and lift us out of this. So in other words, it could be like an o eight shock, but the problem is we we have less ammunition for a bailout.
— Predictions segment ends —
Kara Swisher · 1:07:42
Yep. With the tariffs, with the debt, with everything. I mean, you know, one of the things that... Did you hear James Carville saying, I don't have enough Trump derangement syndrome. I want more. I I should... You know, I'm so furious at this fucker. He was screaming. This... What he has done here with this neuron... And it all, as you have noted many times, links back to Epstein again. Right? It links back to this guy.
Scott Galloway · 1:08:03
He's the guy in every room.
Kara Swisher · 1:08:04
In every room. I think you're absolutely right that this... Everything is motivated by either people wanna get before... While the getting's good or for themselves or an unhealthy need to hold on to power in a demented way. Like, I I remember when Elon said that one time, if Democrats... It's an existential crisis for the world of Democrats when... Actually, as I always say, every accusation is a confession. We're in an accidental crisis because of these greedy fucks and because of the the need to hold on to power over everything, and it's gonna... It has reverberations around the world.
Scott Galloway · 1:08:43
There's some really interesting tax proposals. Senator Booker proposed, basically, a tax holiday for young people, which I love. Not that expensive because young people don't make that much money. We need to level up young people who are 24% less wealthy than they were forty years ago versus old people who are 72% wealthier. And then for the first time, I saw a wealth tax that could potentially make sense. But instead of going after billionaires, they should be going after anybody or everybody that, say, has a wealth, you know, more than call it a $100,000,000. You get no happiness. Your kids will get no incremental happiness from inheriting that much money.
Kara Swisher · 1:09:22
Yeah. We're helping you. Billionaires, we're helping you lift your wallets.
Scott Galloway · 1:09:25
And it should be it should be annual, and it should be small enough such that people don't have to liquidate assets.
Kara Swisher · 1:09:30
Or move to Florida. Like Yeah.
Scott Galloway · 1:09:33
It has to be federal.
Kara Swisher · 1:09:34
Starbucks is
Scott Galloway · 1:09:35
just It has to be federal.
Kara Swisher · 1:09:35
You're absolutely right. That's great. Okay. Alright. We're gonna talk about that. That's gonna be one of our big topics at South by Southwest. Anyway... Because you have... Will have just interviewed, baby Jesus. Anyway, wanna call Jesus. Call him baby Jesus. I I dare you. Penis hugs, baby Jesus.
Scott Galloway · 1:09:53
That's my in Austin, you can't find three wise men and a virgin.
Kara Swisher · 1:09:56
Oh, very good.
Scott Galloway · 1:09:58
You knew it was coming.
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Scott Galloway · 1:10:01
it was coming. We just heard from the Calorico team, and that he has a scheduling conflict.
Kara Swisher · 1:10:05
Yeah. We... Anyway, we wanna hear from you. Stop with the jokes. Send us your questions about Business Tech or whatever's on your mind. Go to nymag.com/pivot to submit a question for this show or call 85551 elsewhere in the Karen Scott universe. I'm gonna get serious for a second. Monday, I published a story that I think I'm the most proud of of anything I've done in a very long time. I sat down with three Epstein survivors who've been pushing for more transparency with... On on with Care Swisher. Survivor, Liz Stein, who's also a survivor of childhood, sexual abuse, said her desire to help her younger self fuels her advocacy work. Let's listen to a clip.
Speaker · 1:10:41
It would be irresponsible of me to have this position and to not use it so that others did not feel alone in this. Because if I could go back and tell myself anything, it would be to tell someone. And if they don't listen, tell someone else and just keep telling until people listen to you. And even if you feel like they don't, be proud of yourself because you at least were able to sit in your uncomfortable truth when other people weren't. And that's really what fuels me doing this advocacy, being the person that I wish was there for me when I needed them most.
Kara Swisher · 1:11:20
This is a great show. They actually got to talk a lot about it. Often, get these shorter interviews. It was really very moving. I dare... I just listened to it. I know everyone goes, oh, good goodness.
Scott Galloway · 1:11:30
Yeah. You know the emotion in her voice.
Kara Swisher · 1:11:32
Such dignity, such incredible strength, such heroic behavior in the face of adversity. And, you know, it was in... Lot of... I've gotten a lot of feedback that's been... I really appreciate, but it was all these women. They were astonishing. It has nothing to do with me, but I let them talk, and you should listen to what they have to say, as she said. Anyway, that's the show. Thanks for listening to Pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week.
Scott Galloway · 1:11:59
Today's show was produced by Lara Nayman, Tony Marcus, and Taylor Griffin. Ernie and her Todd engineered this episode. Manolo Moreno edited the video. Thanks also to Drew Broz, Misa Barron, Dan Chelan. Nishat Kerwa is Vox Media's executive producer of podcast. Make sure to follow Pivot on your favorite podcast platform. Thank you for listening to Pivot from New York Magazine and Vox Media. You can subscribe to the magazine at nymag.com/pod. We'll be back next week for another breakdown of all things tech and business. We will see you all in the great state of Texas.
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Scott Galloway · 1:13:56
I mean, whale, help me.
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Scott Galloway · 1:14:17
now.
