Jensen Huang Resigns, Data Centers Face Political Pushback & Housing Hits New Low

SPEAKER_1 (0:00)

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Steve Eisman (1:47)

Now, it's going to take a while to figure out the full implications of the resignation of Jensen Huang. We know the election combined with the CoreWeave debt, the wobbly foundations of the anthropic IPO valuation, and now the Jensen drama have all sucked trillions of dollars in valuation from the stock market and voters' retirement accounts. There was some extremely negative news about housing that came out this week. Inventory is increasing, but buyers aren't buying. That is the lowest rate in 16 years. But it's actually worse than that. Cisco reported Thursday night, these are very good numbers for Cisco. Charter reported last Friday, and the results were not good. There will be winners and losers, and it's time to return to good old-fashioned stock picking, a world I know well. Let's start the process now.

Hi, this is Steve Eisman, and this is The Weekly Wrap for the week ending Friday, November 13, but recorded Thursday night, November 12

If you like the work we're doing, please subscribe to our YouTube channel and visit us at steveeisman.com to subscribe to Substack. This past Wednesday, November 11, on Substack Premium, we posted an interview with Melody Wright of Unicus Research, who is an expert in housing.

SPEAKER_4 (3:06)

Some would call this, depending on which way you're looking at metrics, the most unaffordable in history right now.

Steve Eisman (3:12)

Melody discussed the horrific state of US housing and why she thinks housing prices are going to decline in most parts of the country. This coming Wednesday, November 18, we will post an interview with Gary Gensler, former head of the Commodity Futures Trading Commission, the CFTC, and the Securities and Exchange Commission, the SEC.

SPEAKER_5 (3:33)

And we tend to build the infrastructure before we have sufficient revenues to support that infrastructure. Every single time plays through to a correction. How damaging, when does it happen? And I've publicly already said, I think it's in the next 18 to 30 months.

Steve Eisman (3:49)

We will discuss the potential problems with the AI trade, regulation of prediction markets, and other regulatory matters as well. We hope you tune in. Now moving on to the wrap. This week we will discuss, one, AI news and implications, two, negative housing data and cost of living, three, earnings reports, of course, and four, my fantasy novel list.

Before we get started, let me begin with the conclusion. Until now, the AI debate has been between those who are extremely bullish, and those who think it will crash and burn and send the US into a horrific recession. For the reasons I'm about to go into, I think what we now need is a differential diagnosis. It's not all good, and it's not all bad. There will be winners and losers, and it's time to return to good old fashioned stock picking, a world I know well. We will be exploring this over the next several weeks, but let's start the process now.