E59: Twitter's content warning algo, equity audits, politicians trading stocks, Fed's next move

Twitter’s new “heavy conversation” warning appeared on a benign David Sacks tweet, and the panel could not tell whether a human editor, reports, or an algorithm triggered it. Their strongest point was procedural: moderation is unavoidable, but users should be told why a warning was applied and by what mechanism.

The Fed’s pivot was the episode’s core market story: QE was set to end after its balance sheet rose from roughly $4 trillion before COVID to nearly $9 trillion. Sacks said investors in real estate, venture capital and crypto were increasingly focused on rates, inflation and Washington rather than individual assets.

Chamath cited a new study reporting what he described as a 22-point drop in cognitive development among children born during the pandemic, with boys and lower-income children hit hardest. The panel treated learning loss as more concrete than broad stimulus, arguing for tutoring, summer school, smaller classes and stronger in-person schooling.

Friedberg’s durable COVID conclusion was that Omicron looked less like a final wave than evidence that the virus was becoming an endemic problem requiring adaptation. He argued that if high transmissibility came with lower severity, policy should prioritize keeping schools and businesses functioning rather than assume repeated containment could end transmission.

The panel’s clearest governance issue was stock trading by officials: it said STOCK Act disclosure violations carried trivial penalties and cited late filings by members of both parties. They widened the conflict-of-interest problem beyond Congress, noting Fed resignations over trading and a federal judge reportedly involved in more than 130 trading conflicts.

Friedberg argued that COVID did more than validate mRNA vaccines; it accelerated regulatory, commercial and public acceptance of RNA as a broader therapeutic platform. The larger opportunity is using cells to make useful proteins—or suppress harmful ones—for cancer and genetic disease, potentially compressing years of development that might otherwise have moved slowly.

London Breed’s call for more aggressive law enforcement marked a sharp change in San Francisco’s political tone, but the panel split over whether it reflected pragmatism or belated responsibility. Sacks expected growing conflict with District Attorney Chesa Boudin, while Friedberg stressed that Breed remained accountable despite the city’s fragmented governing structure.