The Party Is Over, Grab What You Can #154

This week we look at two stories that share a single underlying logic: the people running things have stopped pretending to care about the original purpose of the institutions they control, and are now just taking what they can before the music stops.

The first is FIFA. Gianni Infantino announced this week that FIFA, a nonprofit organisation founded to promote and regulate football around the world, will create a for-profit subsidiary and sell 20 percent of its stake to private investors, with Joshua Kushner, brother of Jared Kushner and son-in-law of Donald Trump, among those involved. We discuss why this is the logical endpoint of decades of slow institutional decay, and why UEFA, despite its own complicated record, finds it surprisingly easy to be the good guys here.

The second is the SpaceX IPO. Elon Musk bypassed the standard investor road show, set a valuation with no serious basis in the company's financials, ran a targeted marketing campaign at retail investors who worship him, and had SpaceX included in the Nasdaq composite index within 15 days of listing when the standard timeline is three months to a year. Index funds were then legally required to buy SpaceX shares, transferring wealth from ordinary pension holders to the richest man in the world and his Saudi co-investors.

We close with an announcement: we are going on our summer break. The deep dive series begins on August 10th and runs through August 31st, taking listeners from the Enlightenment through the 19th century institutionalisation of liberal democracy, through the 20th century peak, and into the 21st century collapse. Regular weekly episodes resume on September 7th.

This podcast is an individual project between us, Dario Hasenstab and Balder Hageraats. We are supported by our producer Stefani Obradovic from Western Bubble Insights & Strategy. If you would like to get in touch with us, write us an email at thewesternbubble@gmail.com.