Dec 17, 2021, 6:03 AM ETPodcast, Interview, Conference Presentation

E59: Twitter's content warning algo, equity audits, politicians trading stocks, Fed's next move

The "All In" podcast recently entered the top 40 globally for the second consecutive week.
Chamath Palihapitiya wears a Tom Ford cashmere sweater featuring buttons allegedly made from endangered rhino horn; he notes the audience size likely dropped by one-third after revealing this.
David Sacks jokes about receiving a "sweater Karen" backlash from a woman named Karen, who spent $3,000 on eight sweaters.
Sacks recounts two New York anecdotes: a helicopter landing that tilted dangerously at an East River heliport, and a post-basketball dinner at Carbone where he consumed excessive calories, gaining 2.2 pounds.
Kevin Durant and Draymond Green reportedly have reconciled their past conflicts.
Jason Calacanis failed to secure a reservation at Carbone for a friend, citing the restaurant's extreme difficulty to book.

David Sacks had a tweet flagged by Twitter's moderation system containing the phrase "debating interest rates, inflation and tax policy," suggesting a specific algorithmic trigger for "heated" content.
Chamath Palihapitiya also received a warning flag on a tweet regarding "layers are for players" and $5,000 sweaters.
Panelists debate whether the flagging is a manual human decision (possibly intended to mute discourse) or an algorithmic error requiring tweaking.
A specific profile warning was added to a user's page regarding "interesting things to say," suggesting a new moderation trend.
The hosts suggest these warnings may be a tactic to protect users from bullying or to encourage a "nicer" tone, though they acknowledge the paternalistic nature of such interventions.

House Democrats have proposed a bill requiring independent racial equity audits for tech companies, with fines of $20,000 per day for non-compliance.
The "Color of Change" non-profit is a primary driver of these audit proposals, which would grant auditors potential veto power over product releases.
Panelists argue the proposed "equity audits" lack defined, generally accepted principles, effectively allowing political activists to dictate corporate product decisions.
Sacks compares the potential for product veto power to the 2002 Microsoft antitrust settlement, predicting it would stifle innovation similarly.
The hosts distinguish between "equality of opportunity" (fair hiring processes) and "equality of outcome" (mandated demographic results), arguing the latter distorts market dynamics.
The proposal is characterized as a "grift" where activists create social pressure to sell their audit services to corporations.
Elizabeth Warren and Bernie Sanders faced direct public rebuttals from Elon Musk regarding tax contributions and climate change rhetoric.
Musk noted he paid more in taxes than any other American this year, countering Warren's claims about "freeloading."
The hosts predict the "Build Back Better" bill is effectively dead, shelved until March or beyond due to high inflation and Federal Reserve tightening.

The Federal Reserve signaled it will accelerate tapering, reducing bond purchases from $90 billion to $60 billion monthly and ending quantitative easing by Q1.
Panelists anticipate three rate hikes of 50 basis points each next year to combat inflation.
The Congressional Budget Office (CBO) projects the Build Back Better bill would cost $5 trillion over a decade, exacerbating inflationary pressures.
The Fed's balance sheet has grown from ~$1 trillion in 2008 to nearly $9 trillion today, primarily through the purchase of Treasury bonds and corporate debt during the pandemic.
Sacks argues that adding more stimulus via the current bill is "insane" given the existing $6-7 trillion in government spending and monetary stimulus.
A new study cited in the podcast suggests children born during the pandemic experienced a 22-point drop in cognitive development, with male and lower-SES children most affected.
The hosts attribute the learning loss to poor educational incentives, including union policies that discourage classroom presence and the over-reliance on digital learning.

Omicron cases are surging rapidly in New York City and the UK, with high contagion among vaccinated populations.
Despite case spikes, hospitalization and death rates remain flat or declining, suggesting Omicron is less severe than Delta (potentially 40x more infectious but significantly less deadly).
Sports leagues (NBA, NFL) are experiencing player surges, with the NBA seeing a 7% positive rate recently.
Panelists predict a "political correction" in 2022 where even blue states will abandon strict lockdowns and mask mandates due to public fatigue.
The hosts forecast a divergence where "red states" continue operating normally while "blue states" face school closures and renewed restrictions.
The pandemic is described as shifting from an acute crisis to an endemic state requiring adaptation rather than containment.

A New Yorker profile criticized actor Jeremy Strong for "method acting" intensity, prompting a defense from peers like Anne Hathaway, Jessica Chastain, and Aaron Sorkin.
The panel contrasts the "virtuoso" grind of high performers with the behavior of "impotent critics" who attack rather than create.
There is bipartisan criticism regarding the STOCK Act, which prohibits congressional insider trading but lacks enforcement; violations carry minimal fines (approx. $200).
Specific disclosure failures noted: Brian Mast (aerospace), Rand Paul (pharma), and Suzy Lee (multiple trades).
Nancy Pelosi's stock trading success is highlighted as a reason to defend the current system, with the hosts noting the hypocrisy of politicians who decry insider trading while engaging in it.
The "grift" narrative extends to former Presidents (Obama, Clinton) monetizing influence through high-value book deals and speaking fees.
Landon Breed (San Francisco Mayor) has shifted rhetoric to support increased policing, signaling a potential recall of District Attorney Chesa Boudin.
Panelists predict a "red wave" in the 2022 midterms driven by voter backlash against radical progressive policies ("luxury beliefs") regarding policing, education, and decarceration.
The concept of "luxury beliefs" is defined as policies advocated by the privileged (e.g., defunding police, abolishing AP classes) that the advocates themselves are insulated from the negative consequences.

mRNA technology is transitioning from experimental to a mainstream therapeutic platform for cancer and genetic diseases.
The COVID-19 pandemic acted as a massive accelerant for mRNA approval and manufacturing capacity.
Future applications include RNA interference to block bad proteins and mRNA delivery to instruct cells to produce therapeutic proteins.
Experts compare the potential of mRNA to the impact biologic drugs had on pharma in the 1980s and 90s.
Panelists debate the net positive impact: whether the accelerated development of life-saving cancer therapies justifies the lives lost during the pandemic.
The FDA has already approved several RNA interference products, with a surge in cancer immunotherapy approvals expected.