Latest / Simply Bitcoin / $57 TRILLION TRAP: Why The Stock Market CAN'T Crash (Bitcoin to $1M?) | Bitcoin Simply
Transcript
- 0:00The stock market is going to crash big time.
- 0:02Biggest crash in history. So it hasn't happened yet.
- 0:07The inevitable question is, do you think that we will have a
- 0:12crash or not? The answer is we will have a
- 0:18crash. I just can't tell you when, and
- 0:20I can't tell you how deep. That was Robert Kiyosaki and
- 0:23Andrew Ross Sorkin, 2 of the latest talking has to predict
- 0:26the stock market crash. Like the rest of the doomsayers,
- 0:29they're wrong. The stock market can't crash.
- 0:32It has to go up forever. With AI coming to replace jobs,
- 0:35young people not buying homes or having kids, and nothing on the
- 0:39horizon to stimulate growth in the economy, the system can't
- 0:42afford stocks to crash. But here's the kicker for Gen.
- 0:45Z, this doesn't help you because you don't own stocks or homes,
- 0:49the two things that the system's propped up on currently.
- 0:51And news flash, with inflation on the horizon, it only gets
- 0:55worse from here. Bitcoin is a life raft.
- 0:57Bitcoin is the only realistic way for Gen.
- 0:59Z to try to build wealth. You need to pay attention before
- 1:02it's too late. And if you're skeptical, I break
- 1:05down why it gets harder from here.
- 1:07If you don't own assets, Assets like Bitcoin.
- 1:10This is Dante Coco Bitcoin. Simply, let's go.
- 1:17There are some economists who suggest that because Mr. Trump
- 1:20ties his success to the success of the market that he's not
- 1:24going to let anything like what happened in 1929 happen, and
- 1:30that we should feel secure because of that.
- 1:32I. Think it's hard to know how
- 1:36things get out of control when confidence disappears?
- 1:39It happens like this. So you spent nearly ten years on
- 1:44this book. The inevitable question is, do
- 1:49you think that we will have a crash or not?
- 1:54The answer is we will have a crash.
- 1:57I just can't tell you when and I can't tell you how deep, but I
- 2:00can assure you, unfortunately, I wish I wasn't saying this.
- 2:03We will have a crash. Hot garbage.
- 2:06We'll have a crash. Can't tell you when, can't tell
- 2:08you how big it'll be, but it'll happen.
- 2:11He's dead wrong and his thinking is stuck in the past.
- 2:14A stock market crash cannot happen in our current financial
- 2:17system. Let me give you a breakdown of
- 2:18how the world has changed and why 1929 isn't realistic.
- 2:22Point #1 The Knicks are going to the Finals for the first time
- 2:25since 99. The last time the Knicks were in
- 2:27the finals, gas cost $1.11 a gallon, a dozen eggs $0.95, the
- 2:33median home price $158,000. The Dow Jones under 11,000, the
- 2:39euro was just five months old. It shows you how much the world
- 2:42can change in 25 years. And right now we're going
- 2:45through a massive change in the financial system in the way that
- 2:48the world works with so much debt and people have their heads
- 2:51stuck in the sand. The realities for our parents
- 2:54aren't the same. For Gen.
- 2:55Z and younger, it's bleak. And first time homebuyers at a
- 2:59historic low. 20% of all homebuyers.
- 3:02Before the O 8 collapse it was about 40%.
- 3:06What the hell is going on? Well, I think This is why young
- 3:10people are so mad today. You know, I think there used to
- 3:13be starter homes, not these five, you know, bedrooms, 5
- 3:16baths that exist in all, you know, communities around the US.
- 3:20We used to have homes that were 1/3 to half the price of what a
- 3:24starter home is now in the US with the average, the average
- 3:28price of a home being $400,000. And then, you know,
- 3:31simultaneously, young people today, their wages haven't
- 3:34increased. So, you know, in the 1940s,
- 3:37ninety percent of young people, they earned more than their
- 3:41parents by age 30. Today, less than 40% of young
- 3:45people earn more than their parents did at the same age.
- 3:48And so I think young people aren't just quiet quitting, you
- 3:52know, they're not just logging off and doing Tik Toks.
- 3:54They are really looking at the numbers and saying, why don't we
- 3:57have starter homes? Why aren't we earning more
- 3:59money? And student loans, not only your
- 4:03home's more expensive, we've got this massive debt on top of us
- 4:06that we can never get rid of. And oh, by the way, we were told
- 4:10that if we went to school, we got good grades, we got good
- 4:12jobs, we would have the American dream.
- 4:14And that does not appear to be happening.
- 4:15You're right. The American dream is broken,
- 4:18dead and gone, replaced by debt and servitude to a financial
- 4:21system that doesn't reward people who don't own assets.
- 4:24The dream was sold to our parents in the form of cheap
- 4:26homes and cheap stocks. The stock market is making asset
- 4:30owners richer than ever. The value of equities held by US
- 4:33households is $58 trillion, which is more than the total
- 4:37value of real estate by $9.8 trillion in America right now,
- 4:41the widest gap in history. Equities count for a total of
- 4:4433% of total assets and a record 47% of total financial assets.
- 4:49The S&P 7500, the Dow 50,000. The market that we're in is
- 4:53completely ridiculous, and if it were actually fairly valued off
- 4:57of real value, real earnings, well, it would have already
- 5:00crashed a long time ago. Stock market concentration is at
- 5:03its highest level ever. Stocks have rarely been this
- 5:06expensive. With 145 years of data, the Case
- 5:10Shiller index to the S&P 500 ratio is now 40.8, which means
- 5:14investors are paying $40.80 for every $1.00 in earnings.
- 5:18Something's not adding up. And look at this.
- 5:20NVIDIA. Just one company is now larger
- 5:23than seven of the 11 sectors in the S&P 500.
- 5:27All utilities, all real estate and all materials combined.
- 5:31It's a larger than the German economy and then accounts for
- 5:3320% of the S&P 500 gains. But here's the crazy part.
- 5:37With all of these records and all of this growth happening,
- 5:41well, consumer sentiment is at its lowest.
- 5:43That's because there's a difference between Main Street
- 5:46and Wall Street. People who own assets, mainly
- 5:49people who are older and our parents and those who don't.
- 5:52The one struggling to stay afloat right now, when someone
- 5:55says the market is crashing, it can.
- 5:57And let me show you why in one chart.
- 5:59There's this thing happening right now and it might be due to
- 6:02technology, It might be due to unaffordable home prices.
- 6:05But right now the US birth rate is declining and declining
- 6:09rapidly, meaning people aren't having kids.
- 6:11And we also have this thing happening right now, AI
- 6:14replacing entry level jobs. And with the market and the
- 6:17value of homes being so high and the next class not owning them,
- 6:20you cannot afford for the market to crash.
- 6:23And so young people, they're having to compensate for all of
- 6:26these challenges by going further and further out on the
- 6:28risk curve and taking more risk. Take a look at this chart right
- 6:31here. 62% of investors under 35 say that they have to take
- 6:34excessive risk in order to reach their financial goals. 43% of
- 6:38investors under 35 trade options, more than four times
- 6:42the 10% of over 55 investors trading options.
- 6:46Almost 30% of investors under 35 have purchased meme stocks in
- 6:50crypto assets, while it's just 2% of people over 55.
- 6:54Young people think they need to invest in scams or altcoins in
- 6:56order to get ahead. But newsflash, I'm here to tell
- 7:00you there's only one asset built for this time.
- 7:03A financially stable asset that's being adopted by the
- 7:05traditional financial system. But it's also digital, It's also
- 7:09native, it's also cyberpunk. It's also outside of the current
- 7:13system. The people saying don't invest
- 7:15in crypto are former crypto shillers.
- 7:17Well, my next guest shook up the crypto world recently when he
- 7:20said that most of the crypto industry is dead and they're
- 7:23never coming back. I'm going to bring it now.
- 7:24Professional Capital Management founder and CEO Anthony
- 7:27Pompliano. Oh man, when you said that it
- 7:30was like a shot across the bow. Maybe a shot into the bow.
- 7:33What exactly talking about? Well, think about sports, right?
- 7:37You kind of play middle school sports and high school sports.
- 7:40And then a very small percentage of people, they get to go to
- 7:42college and play sports and then eventually there's even a
- 7:45smaller percent they get to go play professional sports.
- 7:47Same things happen in the crypto world.
- 7:48If you're good enough, you're going to get adopted into the
- 7:51traditional financial system. So I think Bitcoin stable coins,
- 7:53equity infrastructure and tokenization that's going to
- 7:56graduate to the professional leagues.
- 7:58Everything else you're going to get left in high school, man,
- 8:00Really, it's not going to make it I.
- 8:01Mean in a way that's kind of good, right?
- 8:02Because it feels like, I mean, there was one point where there
- 8:05was new stuff popping up every like every morning you wake up
- 8:08and there's 203050 different things and people didn't know
- 8:11what to do. They were throwing their money
- 8:13at everything. It might be better for the At
- 8:15the end of the day, for investors, no.
- 8:17Well, you want competition. We've had a lot of competition,
- 8:20but the free market ultimate is going to determine the winners.
- 8:22The beauty of this industry is that the market is the referee.
- 8:25The market's going to determine what's valuable.
- 8:27Now what you have is you've very sophisticated large pools of
- 8:29capital coming from the traditional world.
- 8:31And they're saying, OK, here's all these things that we can
- 8:32invest in. What are the things that we
- 8:34think are large, scalable, resilient and asymmetric?
- 8:38And I think those four things that I described, that's where
- 8:40their capital is going. And so that's why I say the
- 8:42crypto industry is dying. But this isn't new.
- 8:43Go back to the 90s, we talked about Internet entrepreneurs,
- 8:45Internet companies. Right now, we just call them
- 8:48entrepreneurs and companies. And so the idea of crypto is
- 8:52still going to be alive. But the word crypto, in five
- 8:55years, we're not going to use that word anymore.
- 8:56And it's just going to be, it's Bitcoin, just like gold, oil and
- 8:59anything else. And if you got a crypto coin,
- 9:02it's going to go to the wayside because if you can't make it in
- 9:04the traditional financial system, you ain't going to be
- 9:07able to make it. And he's not the only crypto guy
- 9:09saying everything else in crypto is crap.
- 9:11This is also coming from Arthur Hayes.
- 9:13Sure. And I guess liquidity will not
- 9:15flow. I mean, the good thing about
- 9:17Bitcoin is that if there are more units of Fiat tomorrow than
- 9:20today, it will go up in price mathematically, just that's pure
- 9:23math. But like everything else is very
- 9:25narrative different. The only things that are really
- 9:28doing well if you think about like sort of global capital
- 9:31markets is AI stocks, period innocent, right?
- 9:34Everything else is pretty much. Fucked.
- 9:35Everything else is cooked. Buy Bitcoin and never sell it.
- 9:40Look at Bitcoin's track record. When you look at the amount of
- 9:43time that you hold Bitcoin, well, the returns have been
- 9:46pretty good. The compounded annual growth
- 9:48rate versus the S&P 500 in gold far outpaced them.
- 9:52So Stanley Druckermiller says you don't get rich by investing
- 9:55in diversifying into 50 mediocre assets.
- 9:58You invest in two to three. With asymmetric return
- 10:00opportunity, you can be like the Mavs and try to sell your stars,
- 10:05or you can keep them and ride them and never let go of them.
- 10:08That's what we preach every single week and that's why we
- 10:11partner with Lenin, the leader in Bitcoin backed loans.
- 10:14Lenin allows you to keep your Bitcoin stack and never sell it
- 10:17and also never accrue capital gains.
- 10:20You have an appreciating asset borrowing in depreciating
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- 10:26hours and there's no credit checks and it's in about half of
- 10:30what you could get with a real credit card go to learn dot
- 10:33letting dot AO slash simply or use the link in the description
- 10:36to get started. Never sell your Bitcoin and you
- 10:38want to protect an asset that continues to go up in value and
- 10:41over the long term. You don't have to go at it
- 10:43alone. Work with a coach at the Bitcoin
- 10:45Way. They'll walk you through step by
- 10:47step what this Bitcoin thing means, why it's part of the
- 10:50traditional financial system, but also the things that made it
- 10:53the rebellious asset that cannot be controlled or adopted by
- 10:56anyone. And it gives you that freedom
- 10:57and capability if you you hold the keys and you do it
- 11:00sovereignly. Schedule a 30 minute meeting
- 11:02with the team and they'll show you exactly what this means.
- 11:05Go to thebitcoinway.com/partner/dante
- 11:08Dash cook, all of the stuff that I'm telling you isn't a new
- 11:11thing. Bit corners have been saying
- 11:13this for a long time. Yeah.
- 11:15Well, I think the overarching dynamic is that that the
- 11:20currency supply measured in dollars is continuing to expand,
- 11:24probably expanding 7% a year. It's been expanding about 7% a
- 11:28year for 100 years. And that currency printing goes
- 11:33to finance wars, foreign wars, trade wars, social programs,
- 11:38government deficits, any kind of political program.
- 11:42And I don't think that's new. It's been going on for thousands
- 11:45and thousands of years. The last two years have been no
- 11:50different. And would you say therefore it
- 11:53is those people who don't own assets are?
- 11:55Paying for government. Expansion without.
- 11:57Even realizing it. I think everybody pays for
- 12:01government in their own way. It's true that that people that
- 12:05don't own assets are suffering from that monetary debasement
- 12:10without realizing it. For the most part, government's
- 12:17expensive. It's it's always very expensive
- 12:20whenever you have political ambitions and it's going to be
- 12:23paid for either with taxes or with inflation or with some kind
- 12:28of confiscation or regulation of some sort that impairs
- 12:32somebody's property rights. There hasn't been a big crash,
- 12:35but somehow you feel poor. Somehow life feels harder.
- 12:39And this is the explanation. You have less purchasing power.
- 12:42You have less confidence in your future.
- 12:44And because the money printer continues to run, assets cannot
- 12:47crash. We would have no tax base.
- 12:49We would have no assets. For estates to get taxed when
- 12:52older generations die off, it's simply untenable.
- 12:55They must continue to inflate assets, but the problem is these
- 13:00assets are so expensive that it's hard for you to afford them
- 13:03and to accumulate them in any meaningful way.
- 13:06You need to understand why you need to start thinking in
- 13:08Bitcoin terms. You can't actually see the
- 13:10problem unless you reframe it. The house is being used
- 13:13protecting debasing of money, right?
- 13:16And so the house value versus the money has gone way up and
- 13:20the families can't live in the houses anymore.
- 13:22It's, it's owned by and then so the, the, the entire system
- 13:27degrades by the same money, right?
- 13:30And it's breaking down faster and faster.
- 13:31And people are taking all this leverage to try to live in a
- 13:35house because they think that's their only way out to escape the
- 13:39financial nightmare that they're in for their money losing value.
- 13:42So they're essentially storing their, their purchasing power in
- 13:45a house because it can't be stolen as fast as, as money,
- 13:49right? And and then, and and then they
- 13:53don't realize that then the taxes are going to go way up on
- 13:55the House, right. And they don't actually own
- 13:58their house. They're paying a huge mortgage
- 14:00to be able to have the privilege to rent a house from the
- 14:02government. Yeah, it's more.
- 14:03Of a trap. Than anything and it becomes a
- 14:05trap and they go into that so this so so then the foundation
- 14:09of society starts to break down. You need 2 incomes to be able to
- 14:13afford the house. Kids can't kids don't have one
- 14:16of the parents at home. Things start to change all
- 14:18across, across this and it gets worse, worse and worse from the
- 14:24from the alternative system, from Bitcoin.
- 14:27It's repricing the house, right? So my house was six years ago,
- 14:32300 Bitcoin, Now it's 15 Bitcoin 5.
- 14:36Four years from now, it'll be one Bitcoin.
- 14:38It's, it's, it's, it's, it's the house.
- 14:43It was never going up. It was going up according to
- 14:46infinite monetary units, Fixed monetary units, it's going down.
- 14:52Fix the monetary unit, watch your wealth increase.
- 14:55The best fixed monetary unit for Gen.
- 14:57Z in younger is Bitcoin, and hopefully you wake up to that
- 15:00reality before it's too late. One of the ways that you could
- 15:04do that is by subscribing to the channel.
- 15:06We drop fire Alpha like this seven days a week, and we keep
- 15:09you ready informed as to what's happening and happening in the
- 15:12world to protect your assets and your financial future.
- 15:14One of the ways that you can continue to get ahead is by
- 15:17owning assets. You can own a digital asset in
- 15:20Bitcoin and a Bitcoin mining machine infrastructure,
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- 15:27trade that's going up right now. Work with SAS mining.
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- 15:38Use the QR code in the info in the link to get started.
- 15:42This is Doctor Cook with Bitcoin.
- 15:43Simply happy stacking.