Kara Swisher · 50:28
But liability and privacy legislation can do a lot of good things for this, and it's good for them too for it to have some structure around that. It's better rather than them making their own decisions because you know what the decisions they make will be because they're rather self interested, as are most people. I'm gonna go on it today and ask a dad joke in Scott Galloway's voice, and I shall bring it back for us, our next show. Okay, Scott. Let's pivot to a listener question.
Scott Galloway · 50:52
You've got you've got I can't believe I'm gonna be a mailman. You've got mail.
Kara Swisher · 50:57
This question comes from Alec in New York City. He writes, hi, Karen Scott. What are your thoughts on the rise of the new gambling and betting industry? It seems like it's impossible to escape news and advertisements from this industry with all new casinos opening in city centers like New York. Isn't it just another ticking bomb that will disproportionately affect young men? Oh, everything with young men is so interesting. They come to Scott to ask this question. So, Scott?
Scott Galloway · 51:21
I'm really torn on this, Kara. I I don't... I think as The bottom line is, I don't know how you outlaw gambling. It doesn't make sense when it's just sequestered to certain geographies or certain communities.
Kara Swisher · 51:31
It's not. 30 states have legalized NWC.
Scott Galloway · 51:34
Right. 30 of the 50? I can see the arguments both the way. I think what we have to do is, I don't want to say be more thoughtful parents or incorporate into... I think it would help to have certain what I'll call non STEM based classes in high school. I think people should be taught mating dynamics.
Kara Swisher · 51:53
What is it called, like the behave yourself course?
Scott Galloway · 51:55
Okay. How do you approach a person that you're romantically interested in while making them feel safe? This is how relationships form. This is what it means to be a good partner. I think this would be helpful for kids in their teenage and their formative years. I think it's important to say this is what's happening in your prefrontal cortex. And by the way, as a young man, you are more vulnerable to gamification that results in gambling, that results in addiction. And by the way, gambling more than any other addiction has a greater suicide rate. And the reason why is because you can go down a rabbit hole and no one knows. If you're addicted to meth, people figure it out pretty fast and they intervene or they try to intervene. You can lose your house, your parents' money, and be hundreds of thousands in debt with gambling, and nobody knows. And so you decide there's no way out. There needs to be education. I know that's a pat answer. I think parents have to be very aware of these dangers, with young men.
Kara Swisher · 52:55
Yeah. No. And they don't do well. They don't do well. There's interesting statistics. According to debt.org, more than twenty percent of compulsive gamblers end up filing for bankruptcy, and over $7,000,000,000 in legal bets on Super Bowl twenty twenty two according to the American Gaming. I mean, people love it. It's an addiction. It's just like a
Scott Galloway · 53:13
lot It's a huge thrill. I mean, to a certain extent, in the stock market you get a little bit of that thrill. And I don't know, I don't understand how you suppress it or age gate it, and also I think the best regulation in the world is mistakes and doing stupid things, so I don't think you want to infantilize people.
Kara Swisher · 53:29
Do you gamble a lot? I don't gamble at all.
Scott Galloway · 53:32
Oh, I love... This is exactly what I do. I go to Vegas. I take a kilt. I get super fucked up.
Kara Swisher · 53:37
What?
Scott Galloway · 53:38
I take $5,000 I go down to the casino. I play craps which I don't even understand. I just start yelling out shit like baby needs new shoes, and there's a gamble in the house. I get ridiculously fucked up, and I lose it all, and it's worth it. And there's a lesson there.
Kara Swisher · 53:53
Enjoyable. It's consumption.
Scott Galloway · 53:55
Gambling is consumption. The moment you start thinking you need to leave Vegas with as much or more money than you came with, you're gonna be heartbroken and depressed because it's not gonna happen. There's a reason they can afford white tigers and Cirque du Soleil in the Rainbow Room. It's consumption. Take money.
Kara Swisher · 54:13
Craps is actually where you can make money, but go ahead, from what I understand.
Scott Galloway · 54:16
Well, no. Craps is the place you lose the least. There isn't a game in Vegas over time you will make money. And so I think part of education, you know, my... I can tell my 12 year old's totally into Vegas and wants to go to Vegas. I'm like, gambling is fun. Dad loves to gamble, and this is what dad does. What
Kara Swisher · 54:34
do you love about it? It bores us living daylight out. Vegas is so awesome.
Scott Galloway · 54:38
Oh my god. It's hilarious. People are friendly. It's fun.
Kara Swisher · 54:41
I have no addictive tendencies. It's so... Except for maybe Twitter use.
Scott Galloway · 54:45
Yeah. But it's not an addiction. If you look at it like, I love to drink. It's consumption. I love to buy love to drink. I love to buy cool tennis shoes. That's consumption.
Kara Swisher · 54:54
I don't love that.
Scott Galloway · 54:55
So you just have to think of gambling as consumption, but assume... Start from a position of the following, like buying like buying a cool pair of tennis shoes, like going to Disneyland, like going to a strip club. However you consume, expect to leave with no money, and then you're fine. But don't talk yourself into believing you have some strategy or insight into this thing.
Kara Swisher · 55:17
Yeah. I see. So a little decompression, and you have the number that you're gonna spend. I think it's when people It's a shit
Scott Galloway · 55:22
ton of fun.
Kara Swisher · 55:23
Spend $500. It's a ton of fun. Yeah. I get it. But they just say they're spend 500, and then they keep going. And I... That's what... That's where it gets dangerous is when they keep going.
Scott Galloway · 55:30
Alright. That's what it means to be an adult. Right?
Kara Swisher · 55:33
So if we went to Vegas, I would be at, like, the shows, and you would be in the kilt spending the money. Correct?
Scott Galloway · 55:38
Oh my god. I am so much fun in Vegas. I am I am a good drunk. I love to gamble. I know the best places there. It is a ton of fun.
Kara Swisher · 55:47
I would go to Cirque du Soleil. I like Vegas. I like Vegas.
Scott Galloway · 55:50
A ton of fun. I love Vegas.
Kara Swisher · 55:52
I don't mind a strip club. Some of them are okay, but I like a show. I like a show. That's what I like, so I would do that. That's it.
Scott Galloway · 55:58
But the problem is when you push out gambling to every device, and it's constantly in your face, and you gamify it, and maybe you prey on people who are in a weak moment thinking, could get back to paying my rent, or I got to be honest, makes me uncomfortable, but I don't know how to address it.
Kara Swisher · 56:18
It's heady. Do you really wear a kilt? Oh, 100%. A ton of fun.
Scott Galloway · 56:24
It's a great conversation starter.
Kara Swisher · 56:26
Do you wear underwear with that kilt?
Scott Galloway · 56:27
Yeah. Big Edna twins need a little support at my age.
Kara Swisher · 56:30
Okay.
Scott Galloway · 56:31
Alright. It's like a set
Speaker · 56:32
Just in
Scott Galloway · 56:32
case. Care without underwear. Alright. Sad anteater. It's nobody needs to see my junk. It's really... It's not a good look.
Kara Swisher · 56:39
Alright, Vegas. You're safe. Don't worry about it if Scott shows up in a kill.
Scott Galloway · 56:43
It's not a... Speaking of which, I need to manscape and hit hit up my testosterone this afternoon.
Kara Swisher · 56:48
I do... I don't I don't wanna hear this. Now we've moved on to things I don't have any interest in. Anyway, you've got a question of your own. That was a great one and you'd like answered, and send it our way so you can hear about Scott's various and sundry hijinks. Go to nymag.com/pivot to submit a question for the show, or call 85551 Alright, Scott. One more quick break. We'll be back for predictions.
Speaker · 57:13
Everyone's talking about the prospect of a democratic wave in the midterm elections. But here's something that matters just as much, the battle to control state legislatures.
Speaker · 57:23
That's the most important thing we should be focusing on right now.
Speaker · 57:26
The GOP has a trifecta in 23 states, which means they control the governor's seat plus the state house and the state senate. For Democrats, it's 16 states.
Speaker · 57:37
Meaning that the opportunity to pass the policies that the majority of our state supports, things like increasing minimum wage, legalizing marijuana, codifying abortion.
Speaker · 57:48
If Democrats flip just a handful of state legislatures, the majority of Americans will now live in a state under full democratic control, which could have big policy implications.
Speaker · 58:00
That's all on the table with the democratic trifecta.
Speaker · 58:02
This week on America Actually, we're in Wisconsin, and we talked to Francesca Hong.
Speaker · 58:07
We have an opportunity through Wisconsin to actually start improving the brand for Democrats.
Speaker · 58:13
Catch us every Saturday on YouTube or wherever you get your podcast.
— Predictions segment begins —
Kara Swisher · 58:20
Okay, Scott. Let's hear a prediction.
Scott Galloway · 58:23
Well, I'll make an obvious one. So, JPMorgan's about to have their best quarter in history. The torrent The torrent. The tidal wave. The tsunami. What happens in a tsunami is the water... That's how you know tsunami is going out. The water level goes dramatically lower. Like, all of a sudden, you go to the beach and, like, where's the water? And that is a disturbance. Pre.
Kara Swisher · 58:46
That's That's
Scott Galloway · 58:47
before. Disturbance is sucking all the water out, and it's about to come back with a vengeance. Well, the water level has gone down. People are withdrawing their money from regional banks, and the tsunami is gonna be the wave of capital that goes into JPMorgan and is going in.
Kara Swisher · 59:04
Just JPMorgan or Goldman or what?
Scott Galloway · 59:07
Oh, all of them will benefit, but no one's gonna benefit like JPMorgan. I had a board meeting this morning for Ledger, which is this cold storage hardware wallet. We had a... Guess what? Best day ever? Sunday. Right?
Kara Swisher · 59:19
Oh, because everyone's putting...
Scott Galloway · 59:21
Everyone wants out of USD and banks and wants custodian, wants wants cold storage and wants to know for certain they have, you know, my coins, my keys, I get a 100¢ on the dollar here. There's volatility risk in the asset, but nobody can fuck with it. No one can invest it in securities.
Kara Swisher · 59:38
Did gold go up? Did gold go up? I didn't even look.
Scott Galloway · 59:41
I don't know, but whenever there's a flight to safety, the dollar usually goes up and treasuries usually go up. And we're finding the same thing at ledger, but the biggest beneficiary in banks, oh my god. Wait till the earnings call, the next earnings call when Jamie Dimon says, we took in more capital that we can now loan out at a higher interest rate than we pay than we were expecting for the next three to five years, and we did it in three to five days.
Kara Swisher · 1:00:07
Yeah. Gold is way up to five year highs
Scott Galloway · 1:00:10
right now. Close. The next few articles are gonna be on knock on effects. There's gonna be a lot of scapegoating. I actually think those guys who are the venture catastrophists are gonna get probably more than their fair share of criticism, but they're going to get a lot of criticism. There's going to be an enormous analysis of which other banks are slowly but surely going to leak capital, who benefits here. I'll be honest, I think the American government benefits here. I think the US government were the adults in the room. I think this was a great day to be... I mean, sounds it sounds passe. I think it was a really good slash great day to be an American. The government did.
Kara Swisher · 1:00:49
Yeah. Hey, stupid venture capitalists. They weren't playing pickleball. They were doing their jobs, unlike
Scott Galloway · 1:00:54
Super smart people.
Kara Swisher · 1:00:55
Super smart people doing their jobs. They are. If you spend time with them, you're like
Scott Galloway · 1:00:59
And came in with a full faith in Grubb, and one of my portfolio company CEOs went to Silicon Valley Bank Monday morning, waited in line to figure out if they had money and if he could get it out and transfer it. We decided, we couldn't decide what to do, so we decided we're leaving half with SVB and moving half elsewhere, just as like smart risk management. Okay, maybe there's some truth that you shouldn't have all your money with one bank, so we're putting half somewhere else, but we wanna be good citizens and invest in the ecosystem, and we think SVB is actually... Does a good job. But when he was in line, this guy pulled up in a black sedan ten ten minutes before... True story. Ten minutes before the bank doors open, this big handsome guy in a black suit wearing black sunglasses with a big name tag that said, you know, Bob something, FDIC. And he went down the line, and he said, my name's Bob from the FDIC. I'm a special officer at the FDIC. Your deposits are safe here. And went down the line and shook everybody's hand. And I'm like, that's that's the US fucking government.
Kara Swisher · 1:01:56
When The government it's at its best.
Scott Galloway · 1:01:58
When it's
Kara Swisher · 1:01:58
its There's always problems.
Scott Galloway · 1:01:59
But what is it supposed to do? The US government is supposed to do things the private sector can't do. Generally speaking, the private sector, if you don't want you don't want the government, and this is a fundamental difference between capitalism, socialism, the means of production you primarily want to put in private hands when you can. Now occasionally
Kara Swisher · 1:02:15
As in China. As in China, I think they're gonna suffer.
Scott Galloway · 1:02:17
And now occasion... Occasionally, the government can do something better than private sector. They do a better job running the Navy than probably a private company would because there's no profit motive there, or when there is no profit incentive, it's better for the government. But also, they wanna do things that no one else can do. And they were able to come in and essentially calm the waters in zero time flat because only they can do it. And you know what's going happen? We're going to find out. It's not going to cost them that much. When the waters calm here and already interest rates have come down and those bonds have increased in value, you're gonna find when the dust settles, it really didn't cost taxpayers very much.
Kara Swisher · 1:02:53
Didn't cost at all. Didn't cost... You know, it's their job. That's why we have the government.
Scott Galloway · 1:02:57
Yeah, it's a great day to be an American. And by the way, all of you who keep telling America to get out of the way, and then all these arsonists who complain that the fire department is underfunded and late when you have a problem, that's... That you're not being a citizen, you're being a survivalist. But the... Circling back, the prediction, JPMorgan. Oh my gosh.
Kara Swisher · 1:03:20
Alright. JPMorgan.
Scott Galloway · 1:03:21
It's good to be Jamie Dimon.
Kara Swisher · 1:03:23
And we'll see what happens with Bitcoin. It was at, of course, $61,000.500 in November 2021. Now it's at 24, but that's certainly up quite a bit from the lows that it has suffered down at 11. They had lows. So, it's up. People feel like that. They want to diversify. Diversity. Diverse at banks. Diverse... Woke... Wokeness in your diversity of spending. That's how I look at it. Anyway, Scott, that's the show. We'll be back on Tuesday with more pivot and
— Predictions segment ends —
Scott Galloway · 1:03:53
more Pioneering Vanguard.
Kara Swisher · 1:03:55
You vanguarding pioneer. That's what you are. You kilt wearing gambler.
Scott Galloway · 1:04:01
Daddy's a good time in Vegas.
Kara Swisher · 1:04:02
You. And congratulations to us for winning. We deserve it completely. That's how I feel. I'm just saying we're a good pair. You can just... You never invest in our relationship.
Scott Galloway · 1:04:11
I'm in this to win it. Until the kids are out of the house, I'm here.
Kara Swisher · 1:04:14
Okay. Great. Read us out.
Scott Galloway · 1:04:16
Okay. Today's show was produced by Lara Naiman, Evan Engel, and Taylor Griffin. Ernie Endertot, engineering this episode. Thanks also to Drew Burrows and Mia Silverio. Make sure you subscribe to the show wherever you listen to podcasts. Thank you for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for another breakdown of all things tech in business. Who do you want in your foxhole? Janet Yellen or a bunch of venture catastrophists? Jesus Christ. What bitches?
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