Kevin: I’m thinking that’s probably good, because how long can you print free money? Granted, you get something for free, but it will ultimately cost you everything.
Well, we’re not neutral in our opinions, but at least we are in our positions. Just for the record, we are not short Tesla, we are not long Tesla. Why bother with cars when you can sell carbon credits? It’s the wave of the future. They’re worth almost half a trillion dollars, and that is more than all these other nine competitors that sell 50 million cars per year?ĭavid: We used to say when you’re talking about McDonald’s you make it up on volume. Those nine competitors produce 50 million cars per year. When you look at the behavior relating to investors in Tesla, the company is worth more than nine of its competitors combined. And in a bizarre twist of financial market fate, this is like a casino. True, their production is about 360,000 to 370,000 vehicles. Kevin: What the heck is a carbon credit anyway?ĭavid: It’s a different kind of zombie. Kevin: Isn’t that amazing? Almost half a trillion dollars? That’s more than almost all the other automakers combined.ĭavid: The company loses money on car production, but shows earnings exclusively from its sale of carbon credits. And it’s weird because, how do you consider it a zombie with a recent market cap of $450 billion?
What that represents is companies that actually are running almost purely on debt, virtually no profit, yet their stock is skyrocketing,ĭavid: Yes, it’s old world to think that you need earnings and profits, New World to think about leverage and the potential of what gets unpacked from sort of the pro forma bliss. That zombie phrase, by the way, before we jump in here, was used back during the last tech stock bubble – zombie companies. Kevin: You’ve been talking zombies because you’ve been talking about some of these companies. So, yes, I woke up to, as I’m finishing my thoughts and notes for the commentary today, I hear in the background, “Zombie, zombie.” That’s kind of the era of music that she likes.ĭavid: That’s right. I have no idea why she actually thinks of herself as the eighties girl. But before we get to that, you said that your daughter, who didn’t know what we were going to talk about today, got up singing a song with zombies in it.ĭavid: (laughs) It’s song from the nineties by the Cranberries, and over and over again they have the word zombie. Kevin: David, sometimes you think about some of these companies as the living dead. We want a world that is utopian in nature and goes beyond the vagaries of the market and the cruelties of capitalism.”
We want a world where there is no more pain. We want a world where there is no more business cycle. And that’s what you see with the orchestrated fiscal policy initiatives, monetary policy initiatives. “In one sense, we’re destroying capitalism and don’t know what system will replace it. Zombification & The Free Money Apocalypse