Transcript
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Hey there, welcome to the PR Breakdown, where I pull back the curtain on the biggest scandals, pr missteps and comebacks of the year.
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I'm your host, molly McPherson, here to help you understand what happened, why it happened and what you can learn from it.
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It is that time of year again the Crisis of the Year Review.
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Joining me today are my go-to colleagues in crisis, warren Weeks and John Paranac, my two Canadian colleagues in crisis, who are breaking down the year's most unforgettable PR disasters and how some managed to turn their chaos into control.
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Now, as you're listening to this podcast and you're thinking, jeez, I hope this doesn't happen to me or my company, I have a tool for you.
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You can head on over to my website, mollymcphersoncom slash crisis checklist and you can grab your free crisis response checklist.
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It's a 10-step cheat sheet to help you respond to a crisis.
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Trust me, it's a resource every communicator and business owner needs.
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Now let's dive in.
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Hey, warren and John, welcome back to the PR Breakdown for our year in review.
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Are you excited?
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I'm super excited, excited to talk about bad stuff.
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We always love to talk about the bad stuff and break it down.
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We are each going to give, ideally, maybe two or three.
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Whatever we'll do around Robin and discuss what we consider doesn't necessarily have to be the top PR crisis, but a notable PR crisis from 2024.
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Why we think that any nuance to the story, any learning, and then the other two will jump in with their context and their thoughts.
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Are you up for it?
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Sounds good, All right.
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Warren, give us one sentence who you are, what you do.
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I have been in the communications business 30 years, which I know is hard to believe.
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He looks so young, they say on audio um, a media training coach based in Canada, and uh love chatting about issues and crisis stuff.
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Me too, John.
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How about you?
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I'm a 25 plus year uh crisis communications um consultant, working from Toronto as well.
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All right.
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Well, anyone who listens to my podcast knows exactly who you two are, and let's jump in because everybody wants to hear.
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So let's start alphabetical order.
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Actually, I'm going to go with John.
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Let's start with you.
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What's on your list?
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So the one that topped my list.
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I went to look back at the year and everything that we've sort of seen happen in PR media, and I wanted to start with Boeing, because that actually kicked off in January of 2024.
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And, as people might remember, there was an Alaska Air flight where an unbolted part of the airplane flew off in mid-flight and, as a result, boeing had yet another crisis to manage.
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And, of course, this is the same plane that had been the source of two crashes, I think a couple of years prior.
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And I look back as I was preparing for this and just seeing what the company was saying.
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The thing that I wanted to drill down on was when this happened.
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There was a lot of statements from the company along the lines of Boeing is accountable for what happened.
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There was a lot of statements from the company along the lines of Boeing is accountable for what happened.
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Whatever the specific cause of this accident might turn out to be, this can't happen.
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We're going to turn this around.
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Our customers deserve better and for me, it was a great example of where you might be using all the right words, but when the actions of the company don't match the thing you're talking about, there's no credibility and obviously that company has a long way to go to rehabilitate itself.
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When I look back at the lessons that others can take from what we saw, this is a great example of showing that crisis and reputation repair has to start with the things you do and it can't be fixed by words, because the words aren't going to do it itself.
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Said Warren any chance Boeing was on your list.
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Boeing has, frankly, been on everyone's list in this business for five years when those two airplanes crashed and the thing that I remember most is that they took.
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I think it was eight months from the second crash until Dennis Mullenberg.
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I think it was eight months from the second crash until Dennis Mullenberg, who was the CEO at the time, gave that really half-assed apology.
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You know we got some things wrong and I thought, for all the families who have been devastated forever, that was just too late, too little, especially for such a well-funded, publicly traded company.
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Now you've got them stranding astronauts.
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There are people within the company who said that they would never fly on those planes.
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People who build them because they see the stuff that goes on behind the scenes.
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The Boeing whistleblowers seem to be a very clumsy bunch.
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Also, I don't want to get all tinfoil hat quite yet.
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I'm sure we'll get there, but I'm not surprised.
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John brought that up and it just shows you you can't great crisis management.
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It's not just writing a check.
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Well, this shows that my planning was poor.
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So it's feeding right into what Boeing does.
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Because Boeing was on my list here, I thought I was bringing in an outlier, because it happened a while ago, I mean beginning of the years when we heard of the blunder.
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And then, warren, you remembered the whole astronaut piece of it as well, and they're still, am I correct?
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They're still up there, they're not coming back until February, and Elon Musk has to come in and save the day.
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So maybe that's part of your crisis plan.
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If Elon Musk is saving you, then you are definitely going to remain in crisis.
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I think a bigger part of their problem as well is in the management from you mentioned, dennis Muhlenberg, warren, down to the CEO that followed him and I'm losing his name, and he had to leave as well is that Boeing is stuck in the status quo.
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They still consider themselves such a powerhouse and what they do is always the right thing, but their stock in the reputation game is so low and I don't know how they could ever regain that trust, because that's what it comes down to.
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Who trusts Boeing?
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Not many, including the whistleblowers.
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All right, warren.
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Next.
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So I'm going to go with one that's hot off the press and actually still unfolding here in Canada, and that's Justin Trudeau, ourudeau, our esteemed prime minister.
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This is a story that has made international headlines this week, so his finance minister and deputy prime minister resigned yesterday in a pretty scathing letter non-confidence.
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And I remember five or six years ago seeing these trucks with bumper stickers and flags saying you know F Trudeau, and I thought, well, that's kind of rude, that doesn't seem very nice.
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And you've only seen that sentiment grow and grow and grow, to the point where I would have to say that he has had one of the roughest stretches of 12, 24 months.
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You know, his marriage has collapsed, everyone seems to hate the guy, and here you have this political dynasty is maybe not the right word but his father, pierre Trudeau, classic Canadian politician.
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It was 40 years ago that Pierre Trudeau did his famous walk in the snow.
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After 15 years leading the country, he decided that he was not going to do it anymore and, for whatever reason, his son is not getting the message, and so not only is he tarnishing his own reputation, that of the country, he's also, I would say, tarnishing his family name, and you know, we'll see if that changes down the road, but right now he's one of the most despised people in the country.
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John, what do you think?
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fellow countrymen, I'm going to take not a contrarian view of Warren's, but I'm going to pile on to the former finance minister.
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So the day that she resigned, she was supposed to be giving what's in effect like a budget speech in parliament, and what apparently happened was on the Friday before the prime minister asked her to step down from her role and she refused to, and so he effectively fired her.
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But she decided to quit before he could follow through with that and it threw the country into turmoil.
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And that isn't what you do when you're acting in the best interest of your country.
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In the US we saw Joe Biden.
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Democrats thought it was in the best interest of his country to resign and let someone else run, and in this case this person decided you know, I'm going to throw a flaming bomb out into the political discourse and really disrupt everything.
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So from a reputation standpoint, doesn't look great on her, doesn't look great on the government, doesn't look great, justin trudeau.
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So all around it's a bit of a dumpster fire and I'll add that yeah you've probably seen this the president or president-elect trump, possibly referring to the prime minister as the governor now.
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Oh, is that true?
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Is that true?
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The governor of Canada.
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Well, that's a good jump off point for where I wanted to come in.
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When Trudeau was having, I saw a big problem was when I happened to be in Canada and I was in Calgary and I was watching the news and I was noting, wow, like Justin Boy is having his Biden moment and he seems like someone now a US citizen and I will admit I do not follow Canadian politics as much as I should as a northern neighbor here to your south, immediate south but he had a lot of confidence, a lot of people followed him, he had the looks, he had the lineage, he had the family and sometimes I think political families they tend to coast and ride on that longer than they should.
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And it's that again, that status quo, that I think he felt like he had more power behind him and more, you know, just more likability behind him.
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And then it bottomed out and it was interesting, the backlash and how the backlash in Canada from the conservative who's who's running, the conservative who is blasting, yeah, so got a lot of traction, just like Trump did in the US.
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And, and, john, you know how Warren shoved it down our throats about the election.
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That's correct, it was correct, but I felt it smacked of the same thing.
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So right now he is dealing with chaos and now with the tariffs, and with Trump looming now on that issue, he's leaving in a very vulnerable position.
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Absolutely.
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Well check this out.
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So justin trudeau literally just tweeted something, um, and the fact that he is that he allows um comments on his tweets, I'm like you gotta give it to the guy.
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So this is 43 minutes ago and this is on um, what?
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Uh?
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Tuesday afternoon.
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We're stepping up to keep our border strong and secure by deploying new helicopters, drones and surveillance tools, by adding new scanners and sniffer dog teams to stop and seize fentanyl, by cracking down on money laundering that's funding cross-border crime.
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Where the hell was that over the last?
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You know however many years he's been in power?
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For two terms, john's smiling.
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He's talking pretty tough now.
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That and that I would say, is a direct result of trump bullying him on twitter 100 yeah, oh, that's interesting, because what causes so many crises it's just ego or fear, it's the human reaction uh behind it.
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Uh, okay, so we had boeing, we had justin trudeau.
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I've already lost myself.
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Where are we?
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Is it on?
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me.
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Boeing.
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Justin Trudeau, now your turn.
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Oh, now it's my turn, okay, well, you know that this was somewhat of a given.
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I could go corporate, but I'll go with more of my mainstream culture.
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But it's not just for the celebrity of it all.
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I do think that there is a lesson in here, just a corporate one, and in here, just a corporate one, and that is a very recent riff from the headlines Jay-Z and the reason why I'm mentioning Jay-Z is he's not just a musician, he is like a corporation.
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This guy is worth $2 billion, he is huge and the significance of his crisis is how far one can fall, especially when they're affiliated with so many other brands.
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Now, last week, he came out with a fiery statement after he was included in an amended civil lawsuit with Sean Diddy Combs.
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And there is this pit bull lawyer down in Houston, texas, who wants to bring down Combs and Jay-Z.
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He promised there was going to be big names coming down and he delivered with Jay-Z.
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Now, what I found interesting on Sunday night, when I was trying to go to bed, I got a text from an Access Hollywood producer saying can you go on and talk about it tomorrow?
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You know about his statement.
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So, just like you two would do.
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I analyzed that statement within an inch and I was trying to get in the mindset of Jay-Z when he was writing Was this vetted by anyone else?
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Like what was the purpose behind it?
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So the rhetoric was so fiery, the tone was defensive, it was sharp and it made a mistake.
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That I see in all of the crises.
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Where there is guilt and that is blame, it's when they do not discuss anything about what the accusation is or take any accountability.
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It's just I'm going to point the finger elsewhere and I'm going to blame.
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And yes, you might get a lot of news chatter and you might get your fans following you, but that is a defensive tactic that never, ever, ever works.
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So I think he will be hit with this, but there's going to be collateral damage with his wife, beyonce there's a lot of scrutiny there.
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She's huge but also brands like the NFL.
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He's the guy running the halftime show.
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Now the NFL has to decide do we want to affiliate ourselves?
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Then there's Disney.
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I mean, 24 hours after this news, or 48 hours after the news, 24 hours after a statement, he's walking the red carpet with his wife and his daughter for Mufasa.
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She's the voice of Mufasa and Access Hollywood did ask me well, what do you think?
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What are they going to do?
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Are they going to show up?
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And I said, just based on that statement alone and the rhetoric and the anger and the blame and the distraction, oh, he'll show up, he'll 100%, and that's what he's doing.
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So that's mine.
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Don't you think that, especially in the past, since 2016, trump version 1.0, the whole, I guess, more proactive and aggressive public relations response to these types of things become much more the accepted way of dealing with things?
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Like in the past, I think there was a trend toward oh, we can't say that, we have to be more conservative, and now it's like we're just going to punch back, we're just going to be really aggressive, we're going to push back, and we've seen time and time again people able to muscle through these crises as a result, and that wasn't the case before, as I recall.
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But I don't know what's your thought on that.
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Well, quickly, John, you work with clients just like I do.
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I mean, Warren, you're a media trainer, so you're getting that feedback in the room and I get the feedback in the room.
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But, John, are you finding that your clients want you to fight back more and not to take accountability or own anything Like?
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Do you give into it or do you still counsel them to stay the course?
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You know what it varies depending on the situation.
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But I find, because I work with clients in the U?
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S and clients in Canada, that there is a definite difference between what American audiences are comfortable with and what Canadian audiences are comfortable with.
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So Canadians are?
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much more open and much more agreeable to taking a more proactive not proactive, but, you know, push back much more aggressively than Canadians typically tend to.
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I think it's changing, but I definitely see a difference.
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Interesting Warren.
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What about you?
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I saw the comedian Jimmy Carr the other day had a great line.
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I wish I would have thought of this.
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He goes.
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It would appear now that Jay-Z has 100 problems.
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This is one where, if you kind of zoom out and look at all because the whole the Diddy and the Jeffrey Epstein and all of the celebrities who've been kind of implicated in the rumors it's interesting.
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You know, ellen leaving the country.
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You got to read Hoffman linked with Epstein talking about leaving the country.
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I'm not saying it, I'm just like it's very interesting to see and you see a lot of people scrambling and a lot of positioning and a lot of jockeying and I think this is going to be one of the biggest stories of this year.
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And who's that guy?
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Kat Williams, the comedian who was on some podcast like six, seven months ago, predicted all of this, like he dropped names, said it's gonna happen in a very kind of interesting way and so, uh, there are many shoes still to drop his statement.
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I thought why.
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I read that online and it wasn't his name at the top, it was his production company or whatever.
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I read and it sounded a little unhinged to me.
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It sounded like a really rich, pissed off big ego person blasted it out and just hit sand on the couch.
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That's what.
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Well close, and the Access Hollywood producer told me this that he originally posted it to his ex account, took it down and then put it to Roc Nation, where it stayed.
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And I'm just looking at it that maybe the lawyer got involved and said let's keep your account clean and let's just keep this and keep it on your business.
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Okay, all right, warren, how about?
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you, oh, this is my next one now, yep, okay, so we've got a couple to go here because I knew we'd have some duplicates, so I've got a little.
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I got some, some spares here.
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I'm going to go with Sam Altman, the guy who is the creator of OpenAI, because this is a story.
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This is really interesting to me because this is a you know, chatgpt is a tool that probably all of us are using on a daily basis.
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Fascinating, I think it's almost like magic the way that it works.
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So it's a really cool platform.
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We'll probably take all our jobs someday, but for the time being, really cool.
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And what I find interesting about this guy is, if you look at all the things that have been happening around the company and we're talking about corporate reputations and personal reputations, that kind of thing almost every significant employee at that company co-founder, chief scientist, researchers, chief technology officer have all left the real heavy lifters, the real pillars of this company, including one of the co-founders.
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And also Elon Musk was the guy who started the company.
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So they're all gone and he's the only one who's really left and I have to ask myself why.
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So he was being questioned by the government at some point I don't know what month it was earlier this year and they made a big.
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They were trying to say, like follow the money, like how much money?
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What's your interest?
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How much equity do you have?
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And the clip is really funny and from a media training standpoint, I took a look at it today and he says this line he's like I have no equity in open AI, I'm doing it because I love it, which on the surface sounds kind of cheese ball.
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And it turns out now that they're taking open AI, turning it private, and he stands to, I think, profit by about $10 or $11 billion right out of the gate.
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He's got a $4 million sports car that someone took a picture of him driving in.
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So there's a little bit of hypocrisy here.
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And if you look at that clip where he says I have no equity in open AI, I'm doing this because I love it.
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What's interesting to me as a media trainer is he's shaking his head the whole time.
00:19:14.173 --> 00:19:31.306
He's saying one thing but his body language is saying another and so I really believe, as cool as chat GPT is and all the tools that they have and Sora and Dolly and all those, I think we're dealing with the Lego and Nerf versions of this and they've got access to the stuff that you would just blow the top of your head right off.
00:19:31.306 --> 00:19:44.935
And I think those people my read is the people that were in that company and Ilya and all those other folks who were there have a bit of a better moral compass and something scared the bejesus out of them and that's why they left the company.
00:19:44.935 --> 00:19:46.688
So this dude kind of gives me the creeps.
00:19:46.688 --> 00:19:47.790
On a personal level.
00:19:47.790 --> 00:20:05.566
I don't like what I'm seeing from him on a professional level and he's kind of saying one thing and doing another, another, and when you combine that with some of the most powerful technology in the universe, I think that's a really bad combo all that okay, so that's a good one, and you brought up a lot of good points about the background as well.
00:20:05.625 --> 00:20:06.647
So, john, what do you think?
00:20:07.410 --> 00:20:38.317
so I'm going to build on what warren's saying, because that congressional testimony that warren was just talking about, where he talked about how he has no equity you know, one thing we also do is we prepare people for this kind of testimony to parliamentary committees or, in the case of the US, congressional committees, and credibility and reputation is huge there too, because you can't go in front of them, as he did, and say I've got no stake in it and then all of a sudden a year later say, oh, actually, it happened, that this deal got done.
00:20:38.464 --> 00:20:40.432
Now I have $10 billion of equity in the company.
00:20:40.432 --> 00:20:46.759
That makes you very, very unbelievable.
00:20:46.759 --> 00:20:57.798
So the next time they go and next time they have to advocate for things and because the regulatory structure around artificial intelligence is still being developed, there's going to be lots of room for him to do that.
00:20:57.798 --> 00:21:07.391
And having a great reputation in order to show that we're the good guys, we want it done right, the right way and get the regulation to go the way you want, is directly impacted by these kinds of needless.
00:21:07.391 --> 00:21:17.558
Frankly, I don't want to say he's lying, because he probably was true at the time, but it was incredible to think that that was never going to be the case and he would never have some sort of stake in the company.
00:21:17.558 --> 00:21:24.778
Like, nobody works for free effectively because they love it, unless they're already like a billionaire.
00:21:26.185 --> 00:21:39.327
Yes, if there was another reason and whenever I'm looking at a statement or a direct quote, I always want to look at the intention behind the quote why would he specifically say I'm not gaining from this, or equity, whatever the specific words that he used?
00:21:39.327 --> 00:21:41.436
Well, it's because he was gaining something.
00:21:41.436 --> 00:21:43.465
That wasn't equity, but it was something else.
00:21:43.465 --> 00:21:51.913
You know, it's threading a needle with their words and they wordsmith it in a way where they can't get called out for lying or especially if it's testimony.
00:21:51.913 --> 00:21:53.076
I mean, they certainly can't lie.
00:21:53.076 --> 00:22:01.409
But, sam Altman, what that started is you know.
00:22:01.429 --> 00:22:12.548
Going back to Warren, the reputation part came with the board, with the resignations and the board asking him to leave on firing him based on how he treated people, that he was secretive, that he was abusive, that he just wasn't a good change agent, but possibly for bad.
00:22:12.548 --> 00:22:17.709
So it's safe to assume that he knew something and he was going to gain from something.
00:22:17.709 --> 00:22:21.267
Maybe it was just the intelligence that he knew would pay off down the road.
00:22:21.267 --> 00:22:34.992
Warren, you said it it's scary the amount of power, and when that power is given to just a few guys like a Sam Altman and an Elon Musk, it does get frightening.
00:22:34.992 --> 00:22:41.340
It's not even just the money, it's the power and the amount of intel that they now have together.
00:22:41.340 --> 00:22:45.788
It's frightening, agreed, okay, all right, john.
00:22:45.788 --> 00:22:46.789
What do you have next?
00:22:47.451 --> 00:22:56.501
Okay, so this is also a recent one and it's still a developing story, but I want to go to New Jersey and drones.
00:22:56.501 --> 00:23:05.032
So people I'm sure have been following on TikTok and other platforms all these videos of drones flying around at night.
00:23:05.032 --> 00:23:15.112
Some of them are probably airplanes, but there are so many things in the air, it seems, at night over New Jersey that it's kind of incredulous as to what's going on.
00:23:15.112 --> 00:23:25.195
And the government's message track on this has been consistently don't worry, it's not a foreign adversary, it's not a threat.
00:23:25.195 --> 00:23:30.534
However, if one crashes, make sure you call the fire department and we'll bring in the hazmat crews.
00:23:30.534 --> 00:23:38.711
And when they're asked questions like well, how do you know it's not a threat if you don't know what it is, there's no good answer.
00:23:39.212 --> 00:24:09.074
So clearly, this is one of the situations where there is a story that is not being fully explained or fully told, and so what is happening is the pressure is amping up and up and up almost on a daily basis, it seems, and it seems reminiscent of back earlier this year and I don't want to spoil it if we end up going there but another international story where it wasn't really clear about what was happening, with a very famous individual and all of a sudden, before you know it, it was weeks and weeks of speculation and videos and crazy stuff happening.
00:24:09.074 --> 00:24:23.769
I kind of feel like the same thing is happening here and I have no idea where this is going to end, but it's clear that the communications strategy that's being implemented is not going to solve or tamp this down.
00:24:23.769 --> 00:24:25.011
It's actually only making it worse.
00:24:25.011 --> 00:24:25.693
I don't know what.
00:24:25.693 --> 00:24:28.247
I'm sure you guys have been following it as well.
00:24:28.646 --> 00:24:36.298
Um, in the us especially, that's yeah, oh, I see, okay, um, okay, but yeah, so the drones.
00:24:36.298 --> 00:24:39.808
Now let's, let's, let's hone in on the drones.
00:24:39.808 --> 00:24:43.556
Who, in your opinion, would be the official spokesperson?
00:24:43.556 --> 00:24:45.266
Well we like who owns it?
00:24:45.446 --> 00:25:02.557
no one owns it, because we've seen the the pentagon speak about it, we've seen governors speak about it, we've seen congressional, state level-level and federal-level congressional spokespeople speak about it, and it is just a confusing, swirling mass of mystery.
00:25:02.557 --> 00:25:05.470
At this point, Literally and figuratively.
00:25:05.851 --> 00:25:07.675
Warren, what do you think of the drone issue?