There's real merit to the classical view that recessions are healthy because they let unsustainable economic behavior 'die' so the economy can be reborn, but that shouldn't stop us from trying to ease ordinary people's pain.

32:07>> I love it. Let's do it. >> All right. He also says rich people just own so many stocks. The top 10% owns 87%. >> Wait, hold on, comrade Batnik. This is a very important this is a very important thing. >> I agree with you. If you want to slow a recession, giving people money, like you're right. It it it totally >> But there is there is a huge school of

32:27thought that thinks that the economy that recessions are healthy, that people just need to take their medicine >> and things need to die in order in order to be reborn. And I totally get it. I'm not saying that I disagree with that sentiment entirely, but I am saying what if you could ease the pain a little bit and make people's lives a little bit less horrific. >> Especially for the especially for those

32:58who need it the most >> because the people that say that the economy needs to take its medicine are never the ones that are going to be collecting unemployment checks, whose lives are going to be turned upside down in a recession. It's it's think people, right? It's people whatever on Wall Street >> people who will have the means to buy stocks when they're down. All right. So

33:15the question is let's say the stock market is too big to fail. What is what is the second and third order effects here and what are the and I don't know exactly what the risks are like we lop off the left tail. It's gone. The left tail of Great Depression. See you later. What does that mean? Now here's my thesis of what this means. It means that

33:33markets will punish bad behavior way faster. And I think flash crashes now are not just going to be daily events. They're going to be bare markets. Like bare markets in the future are going to be flash crashes. We've already had them this decade essentially. >> Look at IBM. Look at IBM today. >> IBM liberation day was essentially a flash crash where the stock market for so this started in 2008 when they when

33:53they did not pass the TARP bill and the stock market went down like 10% in a day and they essentially forced the politicians to come together and pass that bill. The stock market said no no no you're going to do this or we're going to cause more pain. >> Yeah. The same thing happened in COVID, right? The stock market went down so fast and forced the hand the government

34:09had to send out money. >> SV liberation day. They forced Trump's hand into saying, "You know what? I think I'm going to do a 90-day pause on these tariffs." This is what's going to happen. The stock market is going to hold everyone's feet to the fire and say, "If you don't do this, we're see you later." That's what's that the market is going to be that it's going to

34:26you're going to get more way faster downturn. So, the market hold like makes people make decisions to do so. >> Yes, I agree. And it all works as long as earnings are going up because if the if if if corporate America slows, there's nothing politicians can do to make the stock market go up. It's just true. It's just earnings growth. It really is. >> And guess what? Corporations are really