1
00:00:00,600 --> 00:00:03,000
So, you really think of banter
is a really good really

2
00:00:03,000 --> 00:00:03,800
important.
Part of this?

3
00:00:04,300 --> 00:00:05,600
Yeah.
As long as it's not forced,

4
00:00:05,600 --> 00:00:06,600
right?
Yeah.

5
00:00:06,600 --> 00:00:08,900
I mean that's all bullshit.
You sleepy guy.

6
00:00:09,000 --> 00:00:11,100
Yeah.
So you you just got back from

7
00:00:11,100 --> 00:00:12,800
Australia, right?
Yeah, me Zealand.

8
00:00:12,900 --> 00:00:14,900
New Zealand long ago, TG.
Yeah.

9
00:00:14,900 --> 00:00:15,900
Wow.
I was that.

10
00:00:17,100 --> 00:00:18,700
So and I'm it right?
Amazing.

11
00:00:18,700 --> 00:00:25,100
Except for the Cyclone that we
got stuck in and Napier, Hawke's

12
00:00:25,100 --> 00:00:27,600
Bay.
We lost four days of the trip

13
00:00:27,600 --> 00:00:29,400
there.
We got stuck in a little Motor

14
00:00:29,400 --> 00:00:32,800
Lodge No imposter.
Did you gain four days because

15
00:00:32,800 --> 00:00:34,500
you were forced to stay there
for four more days?

16
00:00:34,900 --> 00:00:36,800
No, we didn't get to stay extra
four days.

17
00:00:36,800 --> 00:00:38,400
We know it wasn't an extra four
days.

18
00:00:38,400 --> 00:00:40,600
We missed Harbour Town, we
missed the whole Center.

19
00:00:40,600 --> 00:00:46,000
OH, Zealand kaity missed the
Pinnacle that trip?

20
00:00:46,000 --> 00:00:49,500
Yeah, well, no, I mean you, when
you go through the South, the

21
00:00:50,200 --> 00:00:52,800
south island of New Zealand,
it's like amazing.

22
00:00:52,800 --> 00:00:55,800
We went to Milford Sound, we
tried a couple times.

23
00:00:55,800 --> 00:00:59,100
I don't know if I told that
story already where we car broke

24
00:00:59,100 --> 00:01:03,700
down Falls, The helicopter and
it was crazy was really really

25
00:01:03,700 --> 00:01:06,000
crazy.
Well on that note welcome back

26
00:01:06,000 --> 00:01:08,500
to a record of my father.
Today we're going to be talking

27
00:01:08,500 --> 00:01:12,100
about a recent turn of events.
Yeah we find to be very

28
00:01:12,100 --> 00:01:13,300
interesting.
What is that?

29
00:01:13,300 --> 00:01:16,600
What is that event?
Yeah, I mean if anybody knows

30
00:01:16,600 --> 00:01:21,500
anything about banking Silicon
Valley Bank went into distress

31
00:01:21,700 --> 00:01:26,700
yesterday day before yesterday
yesterday there were actually

32
00:01:27,500 --> 00:01:31,700
you know senior hedge fund
people talking At a bailout was

33
00:01:31,700 --> 00:01:34,300
really interesting to hear
bailout and bank because it's

34
00:01:34,300 --> 00:01:36,800
like, hold it, you know, they
just seem to be having a little

35
00:01:36,800 --> 00:01:38,700
trouble.
We're doing with the gas tank,

36
00:01:39,000 --> 00:01:42,300
that was yesterday.
Well, this morning you wake up

37
00:01:42,300 --> 00:01:45,100
and they're the price of their
stock dropped 60% yesterday.

38
00:01:45,100 --> 00:01:49,300
And this morning, it was after
hours, trading, dropped another

39
00:01:49,300 --> 00:01:52,800
60 percent, it was a three
hundred fifty dollar stocks a

40
00:01:52,808 --> 00:01:56,300
couple days ago now.
It's 60 I think or not it

41
00:01:56,300 --> 00:01:58,900
stopped at 100 because they
couldn't let it drop another 40,

42
00:01:59,300 --> 00:02:01,300
you know.
So it's It's with the but The

43
00:02:01,300 --> 00:02:05,500
Regulators wouldn't shut at the
bank, they did that today, which

44
00:02:05,500 --> 00:02:08,400
is a big deal because it's the
second largest bank ever

45
00:02:08,400 --> 00:02:11,700
shuttered.
Its it just happened.

46
00:02:13,200 --> 00:02:16,100
They did this to Washington
Mutual and I think I was seven,

47
00:02:16,100 --> 00:02:18,500
it was another huge bank and
they're doing this, you know,

48
00:02:18,500 --> 00:02:20,900
kind of like really, really,
really quick.

49
00:02:21,300 --> 00:02:23,700
You know, and you look at where
the economy is in a market is,

50
00:02:23,700 --> 00:02:26,300
and it's a completely different
place than wasn't 08.

51
00:02:27,400 --> 00:02:29,200
You know, you don't have this
oversold crazy.

52
00:02:29,200 --> 00:02:32,900
I mean, we had a crazy economic
housing thing, but then that

53
00:02:32,900 --> 00:02:35,100
kind of died when we start
raising interest rates and

54
00:02:35,100 --> 00:02:37,000
everything went to hell in the
housing market.

55
00:02:37,500 --> 00:02:41,000
Well, then it hadn't gone to
Hell, yet the actual shuttering

56
00:02:41,000 --> 00:02:43,400
of all the banks and the banks
could make a, you know, they

57
00:02:43,400 --> 00:02:47,500
could make any more, you know,
no interest rate, no doc loans,

58
00:02:48,000 --> 00:02:52,900
which is foolish, but we don't
wait, we digress address.

59
00:02:53,200 --> 00:02:56,800
So, here we are on Friday.
And, and the reason we even talk

60
00:02:57,000 --> 00:02:58,500
About this current event.
We never talk.

61
00:02:58,500 --> 00:03:02,300
We sometimes talk about current
events is that the first time I

62
00:03:02,300 --> 00:03:06,800
lived through something like
this was in October of 87.

63
00:03:07,500 --> 00:03:11,200
There was a there.
It was October 16th, it was

64
00:03:11,200 --> 00:03:14,600
Black Friday and everything.
It was the triple Witching Hour,

65
00:03:14,600 --> 00:03:18,400
which is the third week.
It's when all the options expire

66
00:03:18,400 --> 00:03:22,400
on all the different Industrials
and a bunch of other things, I

67
00:03:22,408 --> 00:03:24,700
don't know the technical and you
know, I can look it up.

68
00:03:24,700 --> 00:03:28,100
Second, this was your first day.
Working for this traitor.

69
00:03:28,100 --> 00:03:32,200
No, no, no.
This was my first day was Monday

70
00:03:32,300 --> 00:03:33,300
was Monday.
Okay.

71
00:03:33,300 --> 00:03:37,100
Monday, which is now forever
known as Black Monday.

72
00:03:37,600 --> 00:03:39,400
Black Friday was not called
Black Friday.

73
00:03:39,400 --> 00:03:42,300
When it happened, it was just
sort of like what the hell

74
00:03:42,300 --> 00:03:45,900
correction it's bad.
But then over the weekend fear

75
00:03:45,900 --> 00:03:47,500
grew and that's and that's what
it is.

76
00:03:47,500 --> 00:03:50,600
Now it's like the markets closed
and people can't do anything and

77
00:03:50,600 --> 00:03:53,200
they're all sitting there.
I'm getting calls from people

78
00:03:53,400 --> 00:03:55,600
and I started getting emails.
It's like what the hell's going

79
00:03:55,600 --> 00:03:56,300
on?
What's going on?

80
00:03:56,300 --> 00:03:58,500
What can I do?
Could I do and I'm like we can't

81
00:03:58,500 --> 00:04:01,100
do a damn thing now everything's
closed can't do anything till

82
00:04:01,100 --> 00:04:03,300
Monday morning it's shut take it
all out.

83
00:04:03,300 --> 00:04:06,300
Should take it all out.
We run CH run Joey run and I do

84
00:04:06,500 --> 00:04:11,800
not like oh my gosh I can it
just kind of feels like the same

85
00:04:11,800 --> 00:04:15,300
thing which means that Monday
would be Black Monday all over.

86
00:04:15,300 --> 00:04:21,700
Again that was my first day
working for a Trader who had he

87
00:04:22,200 --> 00:04:25,700
he was a arbitrator Arbitrage
which is they look for

88
00:04:25,700 --> 00:04:28,600
disparities in price.
You know, so many makes an offer

89
00:04:28,600 --> 00:04:32,400
for a company that's 18 and they
think it's going to be 30 or 20,

90
00:04:32,400 --> 00:04:34,400
or 25.
So they bought they take a big

91
00:04:34,400 --> 00:04:37,900
position in the company with
information that they think they

92
00:04:37,900 --> 00:04:40,500
know more about the company than
the people that are making the

93
00:04:40,500 --> 00:04:44,500
offer and then the price of the
stock Rises and they make that

94
00:04:44,700 --> 00:04:48,700
sliver between what the offer is
or right before the offer and

95
00:04:48,900 --> 00:04:50,700
what they all company,
ultimately, sells for.

96
00:04:50,900 --> 00:04:54,400
There's a okay, very, very, very
simplistic terms.

97
00:04:55,100 --> 00:05:03,200
Well eyes, I call Monday and
back then 100 million shared a

98
00:05:03,200 --> 00:05:08,900
was considered impossible and
yet the the extent they were

99
00:05:08,900 --> 00:05:12,300
wishing that they would reach
like a billion shares or know.

100
00:05:12,500 --> 00:05:17,500
When I, when I went in, I went
in there was 100 million.

101
00:05:17,500 --> 00:05:21,800
They were trying to get 85 in
85, I went with the finance 84.

102
00:05:21,800 --> 00:05:24,800
I wouldn't it Finance Club went
New York Stock Exchange and they

103
00:05:24,800 --> 00:05:29,300
were preparing for some day.
Being able to trade 100 million

104
00:05:29,300 --> 00:05:30,300
shares.
That's what I want.

105
00:05:30,300 --> 00:05:31,100
Yeah, wasn't it?
Yeah.

106
00:05:31,300 --> 00:05:33,700
And it was crazy.
And here they were doing it like

107
00:05:33,700 --> 00:05:36,900
4 years, 3 years later and they
didn't want to be in.

108
00:05:36,900 --> 00:05:39,000
The problem was they weren't
keeping up.

109
00:05:39,700 --> 00:05:43,200
So you would, you would say,
hey, I want to buy that stock at

110
00:05:43,200 --> 00:05:48,600
17, and was showing it was
bleeping 17, but the trades

111
00:05:48,600 --> 00:05:51,000
hadn't caught up with it.
Exactly.

112
00:05:51,000 --> 00:05:55,400
And really, it was, it was six.
So if you just put in a sell

113
00:05:55,400 --> 00:05:58,300
order, you see you Thought you
were selling at 17 because

114
00:05:58,300 --> 00:06:01,400
you're trying to you trying to
get out of the stock, it's 17

115
00:06:01,400 --> 00:06:03,200
because you figured okay, that's
not a bad loss.

116
00:06:03,500 --> 00:06:06,300
Well, then when it closed to
three days later, they had three

117
00:06:06,300 --> 00:06:12,900
day close it, close it, 60, you.
I mean people got wiped out and

118
00:06:12,900 --> 00:06:15,200
there were a lot of them that
worked on margin and margin.

119
00:06:15,200 --> 00:06:21,900
You got to settle the in a day
and there were like, I don't

120
00:06:21,900 --> 00:06:26,300
know, 10 big hedge funds at that
point, no, not hedge funds, 10,

121
00:06:26,300 --> 00:06:29,900
big or four.
Arms and four of them went out

122
00:06:29,900 --> 00:06:32,600
of business that day.
I mean, Kidder Peabody was

123
00:06:32,700 --> 00:06:37,100
really, really big.
They got hammered then and they

124
00:06:37,100 --> 00:06:42,400
lost a third of the capital.
In one day, I remember counter

125
00:06:42,400 --> 00:06:43,900
delaio.
They were this really

126
00:06:43,900 --> 00:06:47,100
up-and-coming firm and had
hundreds of millions in capital

127
00:06:47,400 --> 00:06:52,500
and then borrowed capital and
then They lost it all in a day

128
00:06:53,000 --> 00:06:55,500
and then they were closed and
they were all looking for jobs

129
00:06:55,500 --> 00:06:58,400
by Wednesday.
I mean it was just it was a

130
00:06:58,400 --> 00:07:01,000
Slaughter and everybody said
this is it this is the end of

131
00:07:01,000 --> 00:07:03,100
the world.
The markets never going to come

132
00:07:03,100 --> 00:07:05,500
back.
We should everybody should go

133
00:07:05,500 --> 00:07:09,600
into long-term bonds or you just
all the all the Tuesday,

134
00:07:09,600 --> 00:07:12,000
Wednesday Thursday.
Well anyway, let me go back to

135
00:07:12,000 --> 00:07:16,500
the day I call in my first day
because I'm calling the 13 D's

136
00:07:16,500 --> 00:07:19,800
is that's when someone acquires
5% or more, they came out hourly

137
00:07:19,800 --> 00:07:23,400
and pay Paper at the SEC.
And the first point of

138
00:07:23,400 --> 00:07:26,800
dissemination was there.
So if you had somebody in the

139
00:07:26,800 --> 00:07:30,700
room, you would hear about the
market before it got posted it

140
00:07:30,700 --> 00:07:34,600
Al Jones got posted it out Jones
at quarter past so you could

141
00:07:34,600 --> 00:07:38,200
technically Insider trade with
quite a few.

142
00:07:38,200 --> 00:07:40,800
Yeah.
With the scc's information and

143
00:07:40,800 --> 00:07:44,600
it was perfectly legal because
the documents came out and if

144
00:07:44,600 --> 00:07:46,100
you could summarize them get
them.

145
00:07:46,600 --> 00:07:50,200
And remember this is a stack of
documents that how to open.

146
00:07:50,300 --> 00:07:55,400
Hands in here foot and a half
tall. 25 are coming out an hour

147
00:07:55,600 --> 00:07:57,600
because that was the kind of
acquisition back then.

148
00:07:57,600 --> 00:08:01,300
Everything was going crazy.
This was, this is the boesky

149
00:08:01,300 --> 00:08:04,000
times.
I remember one of the firm's I

150
00:08:04,000 --> 00:08:08,000
work for before.
Well, boesky had every every

151
00:08:08,000 --> 00:08:11,300
little research firm in the
reference room on call.

152
00:08:11,700 --> 00:08:13,400
They paid them a monthly
stipend.

153
00:08:13,400 --> 00:08:17,500
So first one to get it to him
got a Bonus, all the rest, got

154
00:08:17,500 --> 00:08:19,300
their monthly, I mean that was
what it was.

155
00:08:19,300 --> 00:08:21,900
So everybody was trying to Get
the information to them first

156
00:08:22,900 --> 00:08:25,500
and the same thing with the
other arms were all getting wise

157
00:08:25,500 --> 00:08:28,200
to the ways that all the other
arms, tried to gain the

158
00:08:28,200 --> 00:08:32,299
marketplace.
Anyway, where was I going with

159
00:08:32,299 --> 00:08:36,100
this?
I was talking about the

160
00:08:36,107 --> 00:08:40,600
difference in the trades, I call
you know, my Williams Act

161
00:08:40,600 --> 00:08:43,900
filings I call and there's
companies that are going into

162
00:08:43,900 --> 00:08:47,000
distress at the time.
I think I'm trying to remember

163
00:08:47,000 --> 00:08:52,100
one I think was CSX or I don't
want to say cxx it was a it was

164
00:08:52,100 --> 00:08:54,600
a Home Building Company.
It was asbestos really.

165
00:08:54,600 --> 00:08:56,300
I don't remember the name of it
completely.

166
00:08:56,300 --> 00:08:58,000
It was a special was really it
was something.

167
00:08:58,000 --> 00:09:00,900
It was like it was trading at
like 17 is share.

168
00:09:01,100 --> 00:09:05,200
They had a tender offer for 17
and And they were like 10 days

169
00:09:05,200 --> 00:09:11,600
into the tender offer and not
that day but the day or two

170
00:09:11,600 --> 00:09:15,400
later they rescinded the tender
offer and then the stock went

171
00:09:15,400 --> 00:09:22,700
down to like six and our guy,
our guy sold his it's 16 instead

172
00:09:22,700 --> 00:09:27,700
of like 9 or 8 or 7 so you know
and he had like I think 100,000

173
00:09:27,700 --> 00:09:32,000
shares.
So you know, 100,000 times. 10

174
00:09:32,000 --> 00:09:34,600
is what?
How's your mouth?

175
00:09:35,700 --> 00:09:39,100
A million.
Okay, so on one trade, you know,

176
00:09:39,100 --> 00:09:42,100
in that and that may not seem
like and that's not a lot today,

177
00:09:42,200 --> 00:09:45,100
but this is one that was 87
this.

178
00:09:45,100 --> 00:09:47,800
Yeah, that's a little different.
But anyway, that's all on that

179
00:09:47,800 --> 00:09:51,600
Monday.
I'm calling and I call it no

180
00:09:51,600 --> 00:09:55,300
one's answering the phone.
In a way, the phone system setup

181
00:09:55,300 --> 00:09:58,600
is I'm calling from a pay phone.
I call into a central number.

182
00:09:59,400 --> 00:10:03,100
There are three Traders and
their two analysts, and there's

183
00:10:03,100 --> 00:10:06,000
a person who calls all the
companies and browbeat cement to

184
00:10:06,008 --> 00:10:08,200
give them information.
And then there's the owner.

185
00:10:09,000 --> 00:10:11,500
And the phone is like, remember
those?

186
00:10:11,600 --> 00:10:15,400
I don't know if you remember
dial phones or push-button

187
00:10:15,400 --> 00:10:19,100
phones, and they had five lines,
and when I call, I would come in

188
00:10:19,100 --> 00:10:23,300
on a line and all three of them
could hit the line at any time.

189
00:10:24,200 --> 00:10:26,800
And it's like, you say, you had
a portfolio of these three

190
00:10:26,800 --> 00:10:29,000
stocks and you'd hit the line,
say Phil.

191
00:10:29,000 --> 00:10:32,200
What For me and I would read
shit to you real fast and say so

192
00:10:32,200 --> 00:10:34,500
and so is acquired three point,
five point one percent.

193
00:10:34,500 --> 00:10:36,700
He said what are the prices that
ice?

194
00:10:36,800 --> 00:10:41,200
It's a 14, 14 and a half 17.
He's got 10,000 shared traits

195
00:10:41,200 --> 00:10:43,200
that set 19.
Just got 10,000 share trades at

196
00:10:43,200 --> 00:10:44,800
20.
It's like, what does he say,

197
00:10:44,800 --> 00:10:47,100
says he's going to see control.
Does he have financing?

198
00:10:47,100 --> 00:10:48,300
Yes.
Yes, financing.

199
00:10:48,500 --> 00:10:49,900
Okay.
That's serious.

200
00:10:50,200 --> 00:10:51,600
That's serious.
When you have financing, you're

201
00:10:51,600 --> 00:10:53,200
doing.
It is a highly confident letter.

202
00:10:53,200 --> 00:10:56,900
That was a very big thing then
but it was very, very compact.

203
00:10:56,900 --> 00:10:58,500
It was, I work 10 minutes an
hour.

204
00:10:59,200 --> 00:11:04,400
From 9:00 was no time because
the market wasn't open the

205
00:11:04,400 --> 00:11:05,800
market already reacted
information.

206
00:11:05,800 --> 00:11:11,100
It was 10 11 12, 1 2 3 so I were
I was on call six hours a day

207
00:11:11,600 --> 00:11:15,700
for about ten minutes each.
Our holiday was your work, this

208
00:11:15,700 --> 00:11:18,700
job form curious.
I only worked for about seven or

209
00:11:18,700 --> 00:11:24,100
eight months because it was
really, it was by far the most

210
00:11:25,100 --> 00:11:29,300
Stressful and non rewarding just
the way you're talking about

211
00:11:29,300 --> 00:11:30,600
because you wouldn't you
wouldn't make it.

212
00:11:30,600 --> 00:11:33,700
A sitting is, is everybody picks
up the phone and and each one of

213
00:11:33,700 --> 00:11:36,800
these Traders had their own
little group of stocks that they

214
00:11:36,800 --> 00:11:39,900
watched.
And if you were watching Pfizer

215
00:11:40,500 --> 00:11:47,900
and it and it came up in the D's
and Billy Bob was watching, you

216
00:11:47,900 --> 00:11:50,900
know, Xerox and Xerox came up in
the die's.

217
00:11:50,900 --> 00:11:52,800
Billy Bob would ask for Xerox.
So then I get the whole

218
00:11:52,800 --> 00:11:54,100
document.
You want me to read the whole

219
00:11:54,100 --> 00:11:56,200
damn thing.
You know, we had a million bucks

220
00:11:56,200 --> 00:11:59,700
in it and I would come back, I'd
have to go physically, get it,

221
00:11:59,700 --> 00:12:04,600
come back, call you back on the
phone and then he wouldn't pick

222
00:12:04,600 --> 00:12:07,300
up.
You would pick up and you would

223
00:12:07,300 --> 00:12:09,200
say, I don't fucking want the
Xerox.

224
00:12:09,200 --> 00:12:11,900
Shit, get the fuck away from me,
where the fuck is my Pfizer?

225
00:12:11,900 --> 00:12:14,200
You know, he fucking own Pfizer,
why don't you fucking have

226
00:12:14,200 --> 00:12:15,800
Pfizer?
And then, I'd be like, okay,

227
00:12:15,800 --> 00:12:18,700
I'll get Pfizer and then I go
and I get buys, when I come back

228
00:12:18,700 --> 00:12:21,200
and then the Xerox guy picks,
it's just like, and then I can

229
00:12:21,200 --> 00:12:24,100
see, and then they get online.
They get then they both click

230
00:12:24,100 --> 00:12:26,300
in.
And then they start cussing at

231
00:12:26,300 --> 00:12:30,000
each other, like, you fuck her.
Why the fuck are you fucking

232
00:12:30,000 --> 00:12:33,600
with my fucking tray?
You know it's like mmm and I

233
00:12:33,608 --> 00:12:38,300
mean everything that is.
Yeah, every third word.

234
00:12:38,300 --> 00:12:41,700
It just third were just crazy,
crazy crazy.

235
00:12:41,800 --> 00:12:48,200
They had a woman analyst who
could just minutes.

236
00:12:48,200 --> 00:12:52,000
Ask you late any man I've ever
seen just so believe it.

237
00:12:52,000 --> 00:12:57,600
She would just be so So brutal,
she would just like Crush you,

238
00:12:57,900 --> 00:13:00,900
you know I mean she talked about
your anatomy and how small it

239
00:13:00,900 --> 00:13:05,100
was in your hand size and I mean
without even like you know not

240
00:13:05,100 --> 00:13:11,500
even giving you a chance to cry.
But she also was like really

241
00:13:11,500 --> 00:13:15,200
really good at talking to like
vp's at large corporations and

242
00:13:15,200 --> 00:13:18,300
call on the board members and
getting tidbits of information

243
00:13:18,300 --> 00:13:21,700
from them like asking questions.
Like so you guys are going to

244
00:13:21,700 --> 00:13:24,900
buy that, right?
Well that's not.

245
00:13:25,000 --> 00:13:26,000
What do you mean?
We're not.

246
00:13:26,000 --> 00:13:29,000
We're that's not public, we're
not going to do that, you know?

247
00:13:29,000 --> 00:13:32,800
So there was all these different
things that you would say that

248
00:13:33,100 --> 00:13:36,300
would solicit information.
Anyway, I was calling, they

249
00:13:36,300 --> 00:13:40,600
answered it 11:00 and all I
heard was Free Fall.

250
00:13:40,600 --> 00:13:43,100
It's a fucking free fall.
No one fucking cares.

251
00:13:43,100 --> 00:13:47,900
What you're saying, slam?
Well, that was my one call that

252
00:13:47,900 --> 00:13:49,700
I got that.
I talked to them on that day.

253
00:13:50,400 --> 00:13:54,400
Well no, I did.
I got a Somebody got a message

254
00:13:54,400 --> 00:13:57,800
to me, I don't remember how, but
I was supposed to call in for

255
00:13:57,800 --> 00:14:01,300
it. 4:00, you know, after the
market closed, we're going to

256
00:14:01,308 --> 00:14:04,600
have a 415, we're going to have
a session.

257
00:14:04,600 --> 00:14:07,300
And then we called in, we're all
in the market and it's like,

258
00:14:07,300 --> 00:14:09,900
well, how much did we lose?
Well, we're down.

259
00:14:10,900 --> 00:14:14,200
I don't know.
I think it was like, 8 or 10 or

260
00:14:14,200 --> 00:14:17,400
15 million, you know, which was
a third of the capital, you

261
00:14:17,400 --> 00:14:20,300
know, they had a lot of money
but not that much money because

262
00:14:20,300 --> 00:14:24,200
it's a small art desk and And
then there was all this

263
00:14:24,200 --> 00:14:26,800
commiseration about this and
that what's going on and all

264
00:14:26,800 --> 00:14:29,700
that kind of stuff.
But then, as it slowly went,

265
00:14:29,700 --> 00:14:32,100
that turned out to be one of the
longest bull markets we've ever

266
00:14:32,100 --> 00:14:34,300
had afterward.
If you stayed in the market,

267
00:14:34,300 --> 00:14:38,300
most people ran, I was living
with a guy at that time had his

268
00:14:38,300 --> 00:14:40,700
girlfriend there.
His girlfriend had a trust and

269
00:14:40,700 --> 00:14:43,800
she was all pissed off at her
dad because he lost all the

270
00:14:43,800 --> 00:14:48,200
money in the market.
And so she ordered him to take

271
00:14:48,200 --> 00:14:52,100
it all out of the market and
everybody that took all their

272
00:14:52,100 --> 00:14:55,900
money out of the market.
At that day, missed the largest

273
00:14:55,900 --> 00:15:00,700
bull market so so it's sort of
like that, but it does Silicon

274
00:15:00,700 --> 00:15:05,000
Valley thing feels like that.
So, I'm expecting over the

275
00:15:05,000 --> 00:15:09,200
weekend fear.
I'm expecting fear to rise and

276
00:15:09,200 --> 00:15:11,300
I've already got feeling it.
I'm all I've gotten like,

277
00:15:11,300 --> 00:15:13,000
feeling I've gotten like 10
emails.

278
00:15:13,000 --> 00:15:16,000
You can go online and run and
run an email.

279
00:15:16,000 --> 00:15:19,600
I mean, Run a search for Silicon
Valley and the stories are just

280
00:15:19,600 --> 00:15:21,700
popping.
Now, people are starting to pick

281
00:15:21,700 --> 00:15:24,400
it up and it's only fair.
Friday and they can't do

282
00:15:24,400 --> 00:15:27,600
anything.
And so, guess what happens, when

283
00:15:27,600 --> 00:15:29,500
see what we need on, Tuesday,
comes around.

284
00:15:29,500 --> 00:15:32,100
Let's see, it's like, it's like
an Alfred Hitchcock flick

285
00:15:32,300 --> 00:15:36,800
because you don't have to show
the guy stabbing, the woman in

286
00:15:36,800 --> 00:15:40,000
the shower, in some gutter away
and gutting her, and thrown her

287
00:15:40,000 --> 00:15:42,100
heart on the floor and all that
kind of happy horseshit.

288
00:15:42,400 --> 00:15:47,200
All you have to do is let them
let their imaginations wrong and

289
00:15:47,200 --> 00:15:51,200
citing fearing, right?
Little bit of eyesight went with

290
00:15:51,200 --> 00:15:56,400
if you don't see like the
President or someone senior

291
00:15:56,400 --> 00:16:00,700
Financial guy, go on TV say
we're having National talk about

292
00:16:00,700 --> 00:16:03,200
what's going to happen.
Monday, shit's gonna hit the

293
00:16:03,208 --> 00:16:05,800
fan.
That's, I don't know that for a

294
00:16:05,800 --> 00:16:08,300
fact.
But I'm telling you I think

295
00:16:08,300 --> 00:16:11,300
that's what's going to happen.
You need some recourse right

296
00:16:11,300 --> 00:16:14,200
away pal.
The head of the FED has to come

297
00:16:14,200 --> 00:16:15,900
out and say we're going to
support this.

298
00:16:15,900 --> 00:16:18,100
We're the banks are going to be
fine.

299
00:16:19,000 --> 00:16:21,000
The banks are going to be fine.
Banks are going to be fine.

300
00:16:21,000 --> 00:16:22,500
You need someone idea of
believe.

301
00:16:22,500 --> 00:16:25,800
Somebody holds cigar that people
trust, it doesn't seem like a

302
00:16:25,800 --> 00:16:27,600
total idiot.
Pals, kind of like the only

303
00:16:27,600 --> 00:16:30,100
reason any of these economic
systems have ever worked is

304
00:16:30,100 --> 00:16:32,900
because people have confidence
in them from other people saying

305
00:16:32,900 --> 00:16:35,000
that they are confident in the
system.

306
00:16:35,300 --> 00:16:38,200
I mean, that's the only reason
why any of this is ever work to

307
00:16:38,208 --> 00:16:40,500
begin with.
Well, the dollar not being a

308
00:16:40,500 --> 00:16:44,500
piece of ameica piece of paper.
Why is it worth 100 pennies?

309
00:16:44,600 --> 00:16:47,300
No, because you believe it's
worth it, right?

310
00:16:47,600 --> 00:16:51,900
Yeah.
It's the only American us of a,

311
00:16:51,900 --> 00:16:55,300
that's why you know.
So so that's why I thought that

312
00:16:55,300 --> 00:16:58,700
I thought about the time in
about how cool it is.

313
00:16:59,400 --> 00:17:01,600
Hmm.
You know it's a very very

314
00:17:01,600 --> 00:17:03,900
interesting thing and for
somebody who has so much

315
00:17:03,900 --> 00:17:08,300
knowledge on it as well, I think
this is a an important topic to

316
00:17:08,300 --> 00:17:10,300
cover.
Especially that's what it just

317
00:17:10,300 --> 00:17:13,200
really jumped out at me because
I remember that timeframe

318
00:17:13,200 --> 00:17:16,099
housing markets as well.
Yeah, doesn't he?

319
00:17:16,099 --> 00:17:19,200
Well the thing is is so now we
can Populate.

320
00:17:19,800 --> 00:17:24,000
Yeah, you know, do we want to
do?

321
00:17:24,000 --> 00:17:27,200
We want to do not look.
I mean, I want to put this out

322
00:17:27,200 --> 00:17:29,500
like today or tomorrow.
I really do believe.

323
00:17:29,500 --> 00:17:30,800
I think we should put this out
tomorrow.

324
00:17:30,800 --> 00:17:34,500
It's very like a promissory
11:21 Valley Bank.

325
00:17:35,600 --> 00:17:38,200
Have we seen this before?
Because, you know, I think we

326
00:17:38,200 --> 00:17:43,100
have, I mean, people will say we
can tie it to like the 2008

327
00:17:43,100 --> 00:17:45,400
highs housing crisis, but I
think that's for a different

328
00:17:45,400 --> 00:17:51,200
reason this right now is, you
know, They bet heavily.

329
00:17:51,800 --> 00:17:56,000
Hmm, and they put all of their
cash and treasuries.

330
00:17:56,900 --> 00:17:58,500
And then they had a run on the
bank.

331
00:17:58,500 --> 00:18:02,200
And you say to yourself, what
they did is, they bought a bunch

332
00:18:02,200 --> 00:18:04,700
treasuries that were earning one
or two percent.

333
00:18:06,100 --> 00:18:09,400
Instead of having it in fully
liquid counts so they bought a

334
00:18:09,408 --> 00:18:12,800
treasury that's 1%.
Well the treasury say it's

335
00:18:12,800 --> 00:18:20,100
thousand dollars Rose to now
it's 4% short-term treasuries so

336
00:18:21,000 --> 00:18:24,500
if you want to buy a thousand
dollar treasury that only earns

337
00:18:24,500 --> 00:18:28,300
one percent in interest you're
not going to pay 1,000 for it.

338
00:18:28,300 --> 00:18:32,600
You're only going to pay like
960 or something, or 959 90 or

339
00:18:32,600 --> 00:18:35,300
whatever you do.
Pay a whole lot less than 1000.

340
00:18:36,100 --> 00:18:39,600
And that loss is eaten by the
bank and the bank needs to cash

341
00:18:39,600 --> 00:18:42,900
the treasuries in because
everybody's going to the bank

342
00:18:42,900 --> 00:18:45,400
and saying, we want our money
one or money now or money.

343
00:18:45,400 --> 00:18:49,000
Now, so the bank's already down
one point, eight billion.

344
00:18:49,800 --> 00:18:53,100
It's a 16 billion dollar bag.
I mean, so I'm surprised but

345
00:18:53,100 --> 00:18:56,500
most of the assets are tied up
in you know they loan money to

346
00:18:56,500 --> 00:19:01,900
venture capitalists so in VC.
And so the money's tied up in,

347
00:19:02,500 --> 00:19:05,400
you know, illiquid Securities.
So they can't, they don't have a

348
00:19:05,600 --> 00:19:07,500
Way to get Capital.
So they went out and they try to

349
00:19:07,500 --> 00:19:11,500
borrow and they couldn't they I
mean, you could say that the CEO

350
00:19:11,500 --> 00:19:13,600
going to the market saying we
need two and a half billion to

351
00:19:13,600 --> 00:19:17,500
shore up, our balance sheet was
an incredibly stupid move.

352
00:19:17,500 --> 00:19:21,900
But You know, it is what it is,
right?

353
00:19:22,500 --> 00:19:24,800
Exactly, we'll see.
What happens.

354
00:19:24,800 --> 00:19:26,800
Here we've been seeing what's
happening with Bed Bath &

355
00:19:26,800 --> 00:19:29,400
Beyond?
No, no, I'm gonna watch that at

356
00:19:29,400 --> 00:19:30,600
all.
If you've been watching, there's

357
00:19:30,600 --> 00:19:35,000
the last ditch effort to
basically Crown fund money from

358
00:19:36,200 --> 00:19:40,500
shareholders and they actually
update for it was like they

359
00:19:40,600 --> 00:19:43,500
gained like what was?
It was like 350 million dollars

360
00:19:43,500 --> 00:19:47,100
the other day surprisingly and
you're just seeing their stock

361
00:19:47,300 --> 00:19:51,400
like go down from $2 to.
Dólar de Bank up to $2 like

362
00:19:51,400 --> 00:19:53,600
every single day.
It's just doing this back and

363
00:19:53,600 --> 00:19:56,500
forth and so, interesting, it's
crazy.

364
00:19:56,700 --> 00:20:00,300
See the movement, you know, it's
very, very anything.

365
00:20:00,300 --> 00:20:04,200
I'm like, wow.
Wow, wow, I'm hoping for a a

366
00:20:04,200 --> 00:20:07,900
Holy Savior to buy the kind of
thing where you last, you

367
00:20:07,908 --> 00:20:09,600
haven't, you you own Bed Bath
and Beyond.

368
00:20:09,900 --> 00:20:13,400
Yeah, I do heroically.
I do not.

369
00:20:13,400 --> 00:20:15,800
I'm not happy right now.
It's still not be as bad as

370
00:20:15,800 --> 00:20:18,800
upstart know, God.
That was so bad.

371
00:20:19,800 --> 00:20:23,400
I'm still looking at that.
Oh my gosh, my God, it's a 380

372
00:20:23,700 --> 00:20:25,700
and the, you know, it's dropped
a 300.

373
00:20:25,700 --> 00:20:28,800
It's to its 280.
It's 270, it's 250.

374
00:20:29,200 --> 00:20:31,100
Oh my God, it's never dropped a
slow.

375
00:20:31,300 --> 00:20:33,500
It'll never go any lower, it's
worth so much more than this is

376
00:20:33,500 --> 00:20:35,500
worth so much more than this.
It's worth so much more than

377
00:20:35,500 --> 00:20:37,700
this and I read like ten
articles and all this kind of

378
00:20:37,700 --> 00:20:40,300
power in the handful of round.
They did all the financing and

379
00:20:40,300 --> 00:20:42,800
they showed the income statement
and balance sheet and how its

380
00:20:42,800 --> 00:20:45,700
kind of grow out of this.
And you know, this is the, this

381
00:20:45,700 --> 00:20:49,700
is the bottom.
Well mean, watching the Laughs

382
00:20:49,700 --> 00:20:52,400
at that company kush.
Yeah and then the mean water

383
00:20:52,600 --> 00:20:55,300
it's now three guys now it's at
9:00.

384
00:20:56,600 --> 00:20:58,200
Is it even?
Let me see, let me check its

385
00:20:58,200 --> 00:21:00,000
nine or 19 or something like
that.

386
00:21:00,000 --> 00:21:04,300
I look at that.
I'm just like what the hell say

387
00:21:04,300 --> 00:21:05,300
let's see.
What's that do?

388
00:21:06,600 --> 00:21:08,900
Hmm.
Fifteen dollars and fifty.