CONFIRMED: Wall Street Is Going On-Chain

0:00Hello, everyone. We've got a lot to discuss today. The government data is so bad that it may become a national crisis. Bitcoin and crypto, they can't stop winning, baby. Figma went public and retail investors got screwed like always. Carvana just completed the greatest comeback in Wall Street history. And humanoid robots, they're now doing your laundry. We're live today from the desk of Anthony Pompliano.

0:30All right, ladies and gentlemen, I've got very bad news for us. It is impossible to trust the government data anymore. Let me explain what's going on here. It is no secret that I personally think the government's inflation metric, CPI, it is complete nonsense. The data collection and the methodology is all screwed up. For example, they've got humans walking into grocery stores, manually inputting the prices of various products, or they'll even call a few hundred people on the phone each month and ask them, what do you think that you can rent your house for? Not what did you actually rent your house for, but what do you think?

1:01That obviously has got a lot of problems baked into it. Now, obviously that is dumb and it makes no sense. But now we have data that also suggests the government is making up one third of all the data used to calculate the CPI metric. Yeah, you heard me right. The government does not have the data for one third of their inputs. And so they are openly telling us that they are estimating the numbers. That's just code for they make it up. They got no clue. One third of the data inputs. But the problems don't stop there. We also just got the latest job revisions and it ain't pretty. Our friends over at Geiger Capital point out that the June jobs numbers revised down from 147 ,000 to 14 ,000.

1:39And the May jobs, they were revised down from 144 ,000 to only 19 ,000 jobs. This means 15 of the last 17 monthly jobs reports, they've all been revised lower. Now this happened under Joe Biden, and now it's happening under Donald Trump. It isn't a Republican or a Democrat thing. It is the data, stupid. We can't collect data in a reliable way. And the methodology used to calculate these economic measurements those are laughable at best. So I hate to be the bearer of bad news, but you cannot trust the data. So stop worrying about the day-to-day gyrations of the economic metrics and instead focus on what is going to happen long-term.

2:14They're not gonna stop printing money and that means only one thing, asset prices are going much, much higher over time. Bitcoin and cryptocurrencies, they just can't stop winning, baby. In a decade, we went from critics claiming that Bitcoin would be banned by the government to now many people realize Bitcoin's going to save the legacy financial system. But it's not just the investors that are thinking this. SEC Chair Paul Atkins recently announced Project Crypto, which is going to revolutionize financial markets. Yesterday, he said, quote, I have directed the commission staff to update antiquated agency rules and regulations to unleash the potential of on-chain software systems in our securities markets.

2:53Federal securities laws have always assumed the involvement of intermediaries that require regulation. but this does not mean that we should interpose intermediaries for the sake of forcing intermediation where the markets can function without them. End quote. Basically, the SEC is saying everything's going on chain and Bitcoin and crypto is going to win. Jamie Dimon now is also realizing the same exact thing. He previously said that he was actually going to fire anyone who was trading Bitcoin, but now he's changing his tune and he's starting to embrace Bitcoin for his clients. Here's what Jamie had to say in a recent interview.

3:25We've seen lately a merging of kind of crypto and JP Morgan and traditional finance in recent months, whether it's the Coinbase partnership that you announced yesterday where Chase customers can use credit cards to fund Coinbase accounts or Investor Day where you said clients can buy Bitcoin, although you've cautioned against it, or the stablecoin-like token, JPMD. How prevalent do you see crypto in traditional finance? And do you foresee risks as these two worlds do become more intertwined? Well, first of all, there's never been a new financial product that didn't entail risk. So that obviously is going to be risk.

3:57and they haven't written all the laws yet. Like, you know, think of the rules around it, like, you know, AML and BSA and KYC and disclosures. And, you know, when they say stablecoin, which we're going to have, I'm not against stablecoins, like a mutual fund. You know, but mutual funds have rules. What are the rules going to be around stablecoins? And I think there are really, so I'm a believer in stablecoin, a believer in blockchain, not personally a believer in Bitcoin itself. But you're the customer. You know, I don't like to tell customers what they can and can't do with their money. That is a whole different issue for us.

4:27And so we're going to accommodate those things. You mentioned that we did a deal with Coinbase, so you can now move money from Chase to Coinbase. We're going to make it easier for people. They've agreed how to use our APIs, which we think is a good thing. So we'll be in it, and we'll see. It's a little bit of a solution looking for a problem, because if I'm going to send you—we already have the JP Morgan coin. We already moved money 24-7. We moved$10 trillion a day quite effectively, efficiently, safely, with all the cyber protection and stuff like that. But if I'm gonna send you a stable coin, you're gonna say to me one point Well, I don't want your mutual fund just send me cash and I'll invest the way I want and but there are things that stable coins Maybe you can do that you know traditional cash can't like is programmable I might be able to say that stable coin Then you can send it to ten different vendors you want to pay on a regular basis or something like that So we'll be in it and we'll use it and again if the customers want to use it and how they use it And it's used properly.

5:21We'll be doing it. It's what the customer wants is not what JP Morgan personally wants Now, a lot of people are going to try to dunk on Jamie Dimon for changing his mind, but I think it's a sign of intelligence. It's what makes Jamie Dimon the best banker of our generation. He got new information and he changed his mind. We shouldn't dunk on those people. We should encourage more people to do this. So kudos to Jamie and kudos to JP Morgan. The orange coin is unstoppable and JP Morgan is better off embracing Bitcoin rather than sitting on the sidelines while their competitors benefit from it. Bitcoin and crypto are winning.

5:53They're going to continue to win. And the future of finance is in the digital world. And now the legacy folks, all those players, all those investors, they realize they better get on the train or they're going to get left behind. IPOs are back and we just saw an incredible performance yesterday. Figma, which is basically like Google Docs for designers, they went public on the New York Stock Exchange yesterday and they popped over 250 % from their IPO price. But here's the thing, that may not actually be a good thing. And I'm going to explain to you why. Now, first, you got to understand, Figma, it's a great company.

6:27Adobe tried to buy it for$20 billion just a couple of years ago. It got blocked by the government. They said all these antitrust rules. And so instead, Figma said, we're going to go back to the lab. We're going to sit down. We're going to work hard at our business. And we'll just go public ourselves. We don't need anyone to buy us. So yesterday, when they went public, they actually had an IPO pricing of$33 a share. So when the investment bankers go to the company and they say, we think that your company's worth $33 a share, we're going to go and we're going to raise you a bunch of money. And we're going to do that with all of our clients.

6:57So all those clients poured money into Figma at$33 a share. But yesterday when the stock started to trade on the New York Stock Exchange, it opened at$85 and it surged all the way up to over$110 per share. So that's great for the people who bought at$33, but you know who it's not great for? It's not great for Figma or for the investors in Figma or the employees in Figma who were selling their stock at$33 a share when now it's trading at over$110 a share. See, this is the problem is that all of the bankers who are incentivized to get a low entry price for their investors leaves money on the table for the company and the employees who actually built the business.

7:34And so yes, Figma's biggest outside investors, Index Ventures, Greylock, Kleiner, Perkins, and Sequoia, they're all holding a collected $24 billion in Figma shares now. Every single one of those guys is going to return their entire fund based on their investment in Figma, but it's actually the individual employees. They're the ones that are left holding the bag at 33 bucks a share. And so naturally what we need is we need some better mechanism that better aligns the incentives of the company, the employees, the investment bankers, and the investors. Let's have a system that actually can better perfectly price all of this.

8:07And then maybe, just maybe, more companies will want to go public and not feel like they're selling themselves short in the IPO process. All right, this is just an insane story. Carvana has to be one of the most ridiculous stories in the stock market over the last few decades. The company saw its stock price fall 99 % from 21 to 2023. 99%. Critics of Carvana were literally calling for the arrest and prosecution of the father-son founding team. People thought it was over, just KO'd, put the company out of its misery. But then Carvana went on the run of a lifetime. They ran it back turbo and saw the stock appreciate more than 11 ,000%.

8:43Recently hit a new all-time high of$400 per share. So it took two years to fall 99 % and then two years to increase by 11 ,000%. Talk about volatility. So let Carvana be a reminder of the great Warren Buffett quote. The stock market is a voting machine in the short term, but it's a weighing machine in the long term. Humeroid robots are coming and they are going to change your and my daily life very quickly. Let's take laundry as an example. I don't like doing it. My wife doesn't like doing it. Nobody I know likes spending time putting clothes in the washer, moving it to the dryer, and then folding it all up and putting it away.

9:17Laundry simply sucks. But now we have robots that are going to be able to do that for you. So don't worry about it. Figure AI, one of these humanoid robot companies, they just posted a demo video of their humanoid robot doing the laundry of their founder in his home. Take a look. All right. From Figure 2 humanoid robot doing laundry in the Adcock house. What do you guys think? Honey, you want to throw that in there? Yep. Throw it in. Good job.

9:51Hopefully you never have to do laundry again. What do you guys think?

9:56Now, just imagine what's going to happen when these humanoid robots can do anything in your home. They can cook, they can clean, they can watch your kids or anything else you need them to do. Humanoid robots are going to change our lives. And I think that it's going to happen way faster than people are predicting. Now, on top of that, though, I think people have not yet imagined exactly what these guys are going to be able to do. And so there's going to be a day where you're driving down some neighborhood and you're going to see a humanoid robot outside cleaning someone's car. You're going to see another robot walking someone's dog.

10:24And now you may even have a robot in your house who's going to do your laundry. I know that I'm interested in that. And I think there's going to be millions and millions of other people who say, how much is that robot? When can I get one? So humanoids are coming. Just understand that they are going to change everything that you think about on a daily basis. That's it for today's show. I hope you guys are enjoying this. I'm having a blast putting it together. Please make sure that you're following us on X and please, please, please subscribe on YouTube. We're trying to grow our YouTube audience there as well.

10:50I'll see you guys on Monday, live from the desk of Anthony Pompliano.