00:30:15 · Tillman Holloway, Anthony Pompliano
All of the fronts, it's just like, you know, no wonder why they're involved in the Texas, you know, new stock exchange down there because it's it's a tokenized effort. [00:30:27] S2: So I'm just googling right now. BlackRock has literally educational content. What is tokenization? What is the meaning? What is the market impact? Yahoo Finance, just last month, BlackRock tokenization push gathers pace as Wall Street continues. Their build tokenization on a tokenized money market fund has grown to about $2,300,000,000 since its 2024 launch. BlackRock, according to Bloomberg, sees tokenized funds moving into Wall Street. Then they even have things, crypto and tokenization episodes of their pod... Like, hello? They are yelling from the rooftops that they are going all in on this stuff, and it kinda feels like people maybe don't believe them or are not yet excited about this?
00:31:13 · Tillman Holloway
[00:31:13] S3: It's gonna be... It goes back full circle to what I said earlier about us being a debt based economy. How many people do you know that borrow against their stock portfolio? It's just the super high net worth. It's... That that isn't a common practice for the vast majority of Americans. And if you look at the amount of debt that we've been able to incur as Americans, it's on the back of real estate. Well, real estate has scalable risk attached to it in terms of management and overhead costs and and burn rate. And so, you know, if I'm a bank and I... And I'm owed a million dollars by Tillman Holloway for a piece of real estate, well, I just foreclose on him and I sell the property and it's mine and I I I hold it for the month or two months or three... That's a very easy transaction for them to manage. It's a very difficult transaction for them to take on 10,000 keys across the country from a billion dollar debt based, you know, loan attached to real estate. So you have this ceiling that precludes us from lending, And and the the ceiling is the management and scalable risk attached to real estate, even though that's the core vehicle that... By which we lend in America. I think this is a new frontier for lending. I think collateralization of loans through smart contracts going forward makes scalable lending the the threshold, the barrier to entry very, very low. If I have $10 in Tesla stock, I can borrow 5 on it. And I can do it through a smart contract where if I'm not paying 42¢ a month through the smart contract, they just take my 42¢ out of the $5 equity that's in the loan value. And they do it at scale, and that is the way in which the the vacuum cleaner has defaults that are managed automatically that are accruing into something that has infinite liquidity into the Bitcoin network. And Bitcoin will be the backstop for all of those real world assets and where they get denominated eventually upon default. That's the way I look at it.
00:33:25 · Anthony Pompliano
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00:35:31 · Anthony Pompliano
AdI guess the question then becomes, how do you think of companies like maybe Figure Technologies? Right? So they they basically are figuring out how do we do consumer lending, and they do it for HELOCs. They do it for, you know, crypto backed loans, all this kind of stuff. But then they are essentially securitizing and creating this marketplace where people can come and take it out, but they're doing it with new technology and trying to drive cost down, which if cost goes down, shouldn't volumes and marketplace activity go up and, like, it's a, you know, inverse reaction?
00:36:03 · Tillman Holloway
[00:36:03] S3: Yeah. Well, I I touch on your... You know, as it pertains to the debt levels now, I would agree they are at all time highs, obviously, and the burden is, mounting at a pace at which it never has before. But the growth in our stock market has actually been a steeper curve. So if you divide that debt into the growth of our stock market over any time period you want, the stock market has outperformed it from a ratio perspective. And so it's it's it's not the whole truth. The whole truth is is that the debt has to keep up. I mean, the debt service has to be... That's a cash flow issue. But the debt amount as a total compared against the value of our... The US stock market is never, you know, very, very low right now. And so I just look at the debt service as the main thing that we have to deal with, and you print your way out of that and you increase, you reprice commodities your way out of that. And we've seen that. We're literally seeing that in front of our own eyes. Silver's been more volatile in the last eighteen months than it has in the last thirty years. Gold, same thing. Oil, same thing. Every tech stock, same thing. Even the S and P is is... You know, there's a lot of chop. And so what does it tell you? Well, it tells you that markets are in flux, but therein lies, like, if you don't get overleveraged and you look at the smartest money in the room, they just look at these volatile moments as buying opportunities. They're just investing in The US economy because at the end of the day, if you chase this rabbit to its hole, it's not about, you know, The US debt going to a rate that we think is unsustainable. It's what's the alternative.
00:37:56 · Anthony Pompliano
[00:37:56] S2: When you see that Americans are going into the ballot box... And I don't know if you've seen these memes where, like, they say, like, men under the age of 30 or 35, you know, they were blue, they went red, and then they u turned back to blue. And it's almost like, I dunno. Maybe they were u turned back to red or they all, like, you know, leave the political system. And it's like, don't wanna, you know, anything to do with this. But they obviously are searching for solutions. Yeah. And when we talk about debt, when we talk about affordability, when we talk about homeownership, when we talk about all these components, including base pay growth, including job opportunities, including all kinds of, almost like anxiety driven, like, is AI? Is TikTok? Is all this stuff gonna, like, ruin my life? Can I have a family? Am I gonna have kids? Like, woah. Everyone, take a deep breath. How do you see this playing out? Like, what... Where can technology help? And then where should maybe the technologist, maybe avoid trying to help?