OpenAI’s $90 Billion Valuation, FTC Takes on Amazon, and The Recession is Coming | Prof G Markets

Recession Signs

Scott Galloway predicts a recession in the first half of next year, despite pushback suggesting the government will prevent it during an election cycle. He cites several indicators, including the resumption of student loan repayments and the impact of rising interest rates on mortgages, as primary drivers. Scott believes the depletion of COVID stimulus funds and a decrease in job openings are also contributing factors 1 2.

Recessions are a natural part of the economic cycle. When Jamie Dimon was asked what is a recession? He said something that happens every seven years.

--- Scott Galloway

Scott argues that the economy is due for a downturn, emphasizing that recessions, while challenging, are a normal part of economic cycles 2.

   

Economic Strain

Scott shares his observations from the Nordic Business Forum, noting that businesses are starting to feel the economic strain. He mentions seeing a decline in prices for the first time in a while, indicating a slowdown in economic activity. Scott believes that as more households refinance their mortgages at higher rates, the economic strain will increase, leading to a recession 3.

The bottom line is catastrophe or economic strain. Not even catastrophe is a rebalancing of power from the old to the young.

--- Scott Galloway

He also highlights the potential benefits of a recession for younger generations, such as the opportunity to buy stocks and properties at lower prices 3.

   

Market Updates

Ed Elson provides a weekly market update, noting declines in the S&P 500 and a rise in the dollar and bitcoin. He also highlights significant events like Chase UK's ban on cryptocurrency purchases and Meta's new smart glasses. Ed and Scott discuss the potential of augmented reality technology and the recent end of the Reuters strike 4.

I do think that kind of smart lenses or smart speakers, smart cameras or micro cameras, once that technology is there, I do think that you'll have some sort of smart glasses.

--- Scott Galloway

Looking ahead, they anticipate job openings data for August and the unemployment rate for September, which will provide further insights into the economic landscape 5.