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[00:00:00]

So at the end of the day, we're decentralized, we don't go by the same rules as you do from the jail cell. Well, that's that story becomes less intrigue. You know what I'm saying?

[00:00:09]

So are we even go to the moon at this point? Why am I wearing this? Emergency, an awesome podcast, was What a crazy day, an unprecedented day on Wall Street. Welcome back to Paulson's number one podcast in the world. GME restricted, Nokia restricted, AMC Restricted. Robinhood has restricted stocks trading on certain stocks. Wall Street's going, what are you doing?

[00:00:46]

What are you doing? We still got one boss. This is to get the gold here. What are we going to. Is a yes no, the trip to the movies, it's postponed for now. Until further notice, yeah, it's a disaster, yeah, if you're like me guys, you don't quite understand stocks. I've had to have a real self reflective moment where I had to ask whatever my dumb people have described, describe stocks to me for years over and over and over again.

[00:01:20]

And I've never truly gotten it. And then yesterday, when all this craziness started happening with the game stocks, I had you come over and whiteboard it out for me. Everyone, this is Chase Hero. He's a good friend of mine. He also built the Maverick Club. He's been in the stock market for over a decade. And your portfolio is quite diversified and you're very good with your money. And so you gave me a little crash course on the stock market and what was happening in the background of the creditors and Wall Street versus the Wall Street banks in the Lehmann versus hedge funds.

[00:01:49]

Now it's they've poured over Robin Hood. It's been a crazy morning. It's been a volatile morning. So this episode, we're going to educate you exactly what's going on, how we got here, and I guess what's going to happen to the future of Wall Street, because I can't see this not being a pivotal moment in trading history. It'll be changed forever. Absolutely.

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Are you surprised this morning as you sit here? I woke up and saw the news that the impenetrable shield around the wealthiest of Americans remains semi impenetrable. I think I think Reddit has done a great job. But at the end of the day, are you surprised are you shocked that that this is happening?

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I'm not, unfortunately. You know, believe it or not, as I always tell you guys, the way I trade is normally like 10 years out. I buy something, hold for ten years because they're notoriously good at this. You know, at the end of the day, the average person investing wants the win, like they probably aren't winning a lot in life. So they're hunting for that win.

[00:02:46]

And when it's robbed from them, it motivates them and they're like, all right, it'll never come back. Or that five grand maybe I shouldn't have put in. Now it's two. I need that money. That's why it's it's so sad because what happens, it just goes right back up and they're moving these markets around and just such a crazy way. I mean, but to be honest with you, it's it's to be expected. And I think that we can also probably expect that absolutely no one will go to jail because of all the things so many people are saying do.

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They can't do that. Well, isn't that illegal? This has to be a crime. Someone should be thrown in jail.

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And I keep saying this morning, the same people that benefit from this happening are the ones that make the laws to prevent it from happening in the future. What do you think they're going to do? This is a systemic fucking problem, dude. It's it's designed for exactly this to happen.

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It's well, the thing is, is they want you to get in the market enough with hope, but at the same time, they want to make the market so weird.

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It's like they're dangling that hope, that prospect of potentially making money in front of you. But then when it happens, they're like, oh, whoa, you've made you made too much. And it sucks that the billionaires. We're able to take back, at least for now, the power from the Trillian thousand years. Well, it's because also the show and you watch the news dangle huge returns. It's like they glorify these insane returns. You see it on CNBC wall.

[00:04:15]

So you see it all the time, like look at these crazy gains. So someone gets into the stock market the first time. They're like anticipating that's what's going to happen to them. And when it doesn't, I mean, it is the ripple effect of this will be horrible. Right now, this is incredibly fucked. People are really down on their luck.

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Can I ask you how down on your luck you are? You don't have to say. I'll say. Yeah.

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So I'll be honest with you, I joined this for fun. You know, I put a hundred grand in at one point this morning. It was a little over five million then like eight million. And then I went to go sell the options and you could tell they were manipulated. The market were ten grand. I was like, well, how can this be this? This makes no sense. And then I realize it's always been this way. They don't trust the average person to act freely because they think that if you think freely, new things will change and it will board about things that they can't control, i.e. cryptocurrency and things of that nature.

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So Reddit is, you know, they couldn't control the platform. They can't control free traders. But what are they? Do they lock their access out to Robinhood? You know, I believe most wealthy people can just call up their broker and still buy all these things right now. Yeah. Yeah, for sure. Which is just so screwed.

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How does how is Robin Hood or some of these other trading platforms defending their position on halting the ability to trade these stocks? Is it because they they see some sort of, you know. Illegalities in the fact that this is happening in the first place, are they? Is it a liability they put on their end or tight? I also saw Alert's coming yesterday from the AFP saying that there's a tremendous amount of volatility right now. Be careful. Are they claiming that they're protecting their users put out in light of current market volatility?

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We're restricting transactions for certain securities to position closing only, including AMC and read more. But why? Like if you pop that open, why are they doing it or why? Sorry, what not. Why are they doing?

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Why are they claiming they're they're saying they're trying to protect their end user from like buying in right now. Super volatile stock. Correct. But here's the problem is there's millions of people who all bought in and you just cut them out at the knees. They created the volatility. Correct. I mean, the thing is, is should it be at the price it is? That's relative. I mean, it really is this world we live in is ever changing.

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So I don't think fundamentals are going to say they are. But if enough people trust something, they can send it wherever they want. Case in point, Tesla. Right. So I think that just they're trying to staple's people's choice.

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And it's crazy only that an app called a Robin Hood is literally doing the exact opposite.

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Robin Hood did. And he was a hero. The Robin Hood flitter Robin, the Robin, the fucking Hood. And I posted this Citadel bails out Melvern Capital. So then Ken Griffin calls a Robin Hood CEO, Vlad, and says, don't allow buying Jimmy Amzi naked anymore. You got some sort of citadel handles 60 percent of Robin Hood's trades. Basically, Robin Hood needs Citadel slash Ken Griffin. So. The platforms and the people that are backed by the money are still always going to choose the money, correct.

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And it sucks.

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And Citadel's really powerful. I think that people forget that they're the people who essentially high frequency trade this. So when you you know, when Robin Hood sends their trade off to the ecosystem to go back to the exchange to buy something, they're buying that position from them and they're breaking up a couple of a couple pennies and they make that margin on both sides. So they always are flush with capital and able to kind of move the market, how they see fit.

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This should be illegal. There's no question about a thousand percent. There has to be some sort of accountability. Take this. This I don't understand. My brain can not compute how this is not criminal. Is it a class action lawsuit?

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Well, like, I feel like I've been making. Well, that's what I'm just that's what I'm saying. I mean, how are they're not going to they're not going to prosecute the people that are making them the money.

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I don't I'm saying they're all eating off of that. All of the all of the administrators or legislators that would make laws to prevent this type of thing from happening are eating all their money unless it's in Citadel's is what's in Melbourne capital is what's funding their trips to Pebble Beach. This is what's fueling their jets like activity like this. And like I was just was thinking about it more this morning. It's like putting the Internet, which everyone says is undefeated, and I sure hope it continues to prove so against a truly undefeated fucking monster that is the American financial system.

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This is a system unlike the Internet, that has not lost this system cannot lose. If you take down the banks, they are bailed out with taxpayer money. The money we make to shut them down, we then pay back to get them back up. They are simply rescanned, reformatted to attack us from a different flank. It doesn't fucking matter. It doesn't matter, dude. And so in a lot of ways, I like the suit while we are on a trip right now, go to the moon and listen.

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You kind of keep thinking this is what I had to do. This just for you guys. Look at this. I wore my naked underwear. Wow.

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The stocks restricted, though, so I'm stuck with it. You were probably going to get this all flag and stuff. Hash tag, not naked. My bad. Some of the Wall Street bets folks are being shadow band, the guy who I'm about to invite on the podcast, which I'm going to do now, he hopefully has some answers for us and can educate us a little bit on how this started, where we're at, where we're going. His account is shadow band, literally.

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And there was a moment yesterday where they shut down the Reddit. Yeah, it was crazy.

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And now it's steaming on five million people. What's next week going to be like? I just feel like it's such a voice that this could get crazy out of hand. And again, you have to remember the powers that be, they can just unplug everything. So I was take us back to the Stone Age. So here's my question. And this is going to be the you know, this is completely devil's advocate. I'm not saying it's right or wrong, but I was watching that scene from The Matrix this morning where the guys eating the steak and he says, you know, for eight years they told me that this wasn't real.

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And he eats a steak. He does. Ignorance is bliss. And the Matrix guy says to him, So we have a deal, you know, like and a lot of ways I'm just like, yo, should I just dump fall back in the Amazon? And just like, at what point do I just get back on the giant shoulders and at least please, please just a couple of dollars for me.

[00:10:28]

Like that's you know what I'm saying. I'm not saying do that, like keep fucking fighting, but it's just like, yo, are we going to keep getting fucking pulverizing the grounders? Elon Musk going to take us to Mars and save us. I want to go somewhere to space. We could tell I dressed for it quite fucking later. I thought we were going to the moon and now everybody's still holding, but not because they want to because they fucking have to.

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Because it gets sell the stock. Well, yeah.

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And you're destroying people like we talk you talk about like the the mental issues and the things people go through, mental health. What do you think a whole bunch of people are going through right now when they've just been like they're like you took my choice away.

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I believe we have them on. Can you hear us? How are you, brother? And Gary, you are amazing. Yeah, pretty good, it's been a wild morning, huh? You can say that again, I still have my protein shake breakfast, which I barely touched. Have you been stressed out? Have you been busy? Busy, yes, stressed out. Not really. This is Wall Street has been in the press before and I'd been in the press before, certainly not to this extent.

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So, yeah, is a bit of stress now, and I'm enjoying that. Got you.

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Well, really appreciate you taking the time to hop on with us on such short notice. And Jamie, I wanted to clarify your involvement in Wall Street bets because your Twitter says founder of Wall Street BET. But if I understand correctly, there's no it's not controlled by anyone in particular. It's not owned by anyone particular. Right. It's an open forum with a few moderators.

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Are we? What's your actual. Correct. Right. So it's a founding really means that I created the Sabatier.

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They went on the Reddit platform and other social platforms, Twitter, YouTube, whatever, and they came up with the name and I registered it on Reddit specifically.

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You started community to see what the rules are for the topic and you promoted to try to grow it and get the conversation going. And then as as the creator of it, you're also the head moderator, meaning you get to decide all the moderators stuff that it looks like, what conversations are allowed, not allowed, and how it's grown and promoted, promoted.

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I grew it over the years as moderator for pretty much the entire time up until April of last year.

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Gotcha. Very cool. Very cool. I had some people reaching out to me this morning, like messaging me. Does even this this practice of speaking on shows upset other members of the community? Because I got quite a few messages.

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I'm sorry I switched the Wi-Fi network. Oh, he's. Oh, I thought he I thought he does that from time to time.

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I just switch the Wi-Fi. I was like, he has a poker face for sure. No wonder he's the guy you got cut off.

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Come back and I just got some shit. I don't even know how I started the wi fi, the wi fi switch. I got some messages from people this morning that were basically kind of telling me that they were upset. No one speaks for us where it could be an open community.

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What does this practice of even speaking on platforms like this, like, upset the community or just came off a TMZ, CNBC, CBS? Right. You've been.

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I've done all. Yeah, yeah.

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So, yeah, you know that I don't speak for Wall Street because nobody speaks for Wall Street.

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That's it's not an organized movement or community. It is by definition just a group of people that go on there. And then they shared topics. And if they like the topics, they upload it like a tweet. And those those conversations which go a lot of attention, end up going to look for the topics like what? There is no unified person that speaks on behalf of Wall Street.

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That's the the appearances I've been making have been from a perspective of the founder of Wall Street. That's about the my experience with it. And as a passive observer of this phenomenon, to be honest with you, I got no skin in this game. But when I was stressed. No, I'm just watching this, enjoying this. I'm talking about the subject, this taking place, which I have a lot of interest in. Got it.

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Got to very cool. So I want to I want to take a second to to educate everyone listening who maybe isn't familiar with how all of this started. How did this viral game stock boom even begin? I guess it was slowly making the loss of people that are saying, including me, that I wanted to learn how to trade, how to make some extra money, it might take an extra risks. I don't mind losing whatever it is that you're putting on the table.

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And there had been pretty much two schools of thought in the world of the stock market. You got this. But the scholarly approach, which you can probably categorise the boomers, which take this fundamental approach and they analyze the do value versus growth and crunch numbers, and they sit there and collect evidence that they had a more active group of people, which these are professionals. They can buy and sell stocks with no long term interest. And I'm going to just cashing in on on the short term moves.

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Individuals did this on their own and large institutions do that as well. All big firms, Goldman Sachs, JP Morgan, they all have trading desks. This new category that kind of develops. I started with that kind of category, this trading it evolved into this is Naem stock mentality, this new stock boom, or people no longer care about the stock price moves. They no longer care about the mechanics of what's taking place. They just think it's funny and they'll put a picture.

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It goes viral. Everyone talks about it, they enjoy it. They don't care if it goes up or down. They can, but either direction and they just have a blast doing it. And sometimes they need money that's wild.

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So what was the thing that was the catalyst for GameStop? You know, I I've been asked a like so what do you think about this movement?

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They're knocking out all these big hedge funds that are like, I don't think Wall Street doesn't have the capacity to not have an organizational structure where they don't have a leader. That said, hey, guys, let's knock over a hedge fund today. The most likely, this is my prediction. They most likely started like any other stock they talk about. You started trading it. They start making money with it, and all of a sudden they see this effect because so many people are doing this and the type of trades that they're doing using these stock options that have an effect.

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This is the how the entire mechanics of the market works and ended up inadvertently pushing the stock up or maybe advertently. I have no idea.

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And as soon as that started all these steam, then people said, wow, the more we do this, the more we can make, like usually if you place bets and historically and the stock market as well as an individual, you pick apples going up or down, you make a bet and that's it. You're right or wrong on horse races and sports.

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Do the same thing. You're either right or wrong. You make a list. But in this case, all of a sudden these guys are influencing the outcome of the bet, because by the very nature of the fact that lots of people do it, all of a sudden the price is doing stuff relative to the number of people that are doing it. And so that got attention.

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And that's pretty much the reason why it's exploded to the Internet in the form of predators, got together a function as a unit and went head to head against against hedge funds.

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You know, to me, that's what's crazy about it, like taking off chaos. You end up finding order out of it, like you ended up scrambling, know a deck of cards long enough. You'll get them in order, I suppose. And I kind of feel that this is what happened here. There historically, you go on Washburn's, you have people go, I think this might to go down. I think the stock market is going to go up and they have between each other a rivalry of short vs.

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long. So, you know, people are betting on the stock going down or up. And it's a very fun conversations, Bill. Spirited and and it's you know, it's historically been the case for some reason.

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They all kind of quick in a place with this one and huge, huge numbers and scope and number of people and the types of efforts they're making.

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And boom, all of a sudden you have this organized organization that takes place out of chaos.

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It's fascinating what's what started as like a fun gathering of people trying to stick it to the men now feels like a like a revolt like this feels like a world war.

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Who's the William Wallace?

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Who's the dude at the front with the face paying the broadsword? You told me about this one kid.

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Well, tell me about this kid. The kid. Yeah, he's like fifty three thousand fifty three K to fifty million. The other day he held strong. I want to say something on that, because you think that maybe the perfect storm of the fact Michael Burry made a post about it in twenty nineteen, he kind of got behind it. And if you know Michael Burry, he stuck it to the man with shorting the housing market back in the day.

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And like, like you guys are committing fraud. The guy in the big show is the guy. And then people realize that this Melvin Capital is also the same bag trying to take Elon Musk down. I feel like people want a chance to, like, be like I want to be heard in this world and I want to make action. And like this is this will ripple effect in the stock world forever.

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But even but even but even Barry then yesterday kind of almost rolled back on it at the end at the end all this and said, yo, this has reached a point now where it's dangerous. Why do you think somebody paid them? Probably, or he knows how effed up the game is and how shady they can play it. And he feels bad for the common man. I mean, after he made all that money, he turned into like a recluse for.

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Right. Right. Because he was just like the system is so rigged, you know what I'm saying? And I think that partly people don't want people to lose. And to be honest with you in this, normally the people who are losing are the people who succumb to the pressure. Right. And they take a loss position, like I always say, like I've done well in the stock market and I've had horrible months, I mean, months that make you want to, like, cry or rethink all of your objectives in life.

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But you hold, you like hold. They're like I no longer doing this. Right.

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But to the point to the point you made earlier about this all being kind of started from like gaming and joking, do you think there's any, you know, rightfulness for the people who do this for a living to be to be upset outside of financial reasoning? Like like a lot like stocks, dogecoin, like that little meme dog, you know, going up against these institutional people. And I understand. Yes. Do we want to remove some of that money from hedge funds?

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Yes, we want to even the playing field for sure. But do you think there's any level of it where some of these guys are like, yeah, I've been doing this for forty years, like I've been I studied my whole fucking life to do this. My family depends on on on this money, whatever, especially some of the guys at the lower levels that aren't, you know, billion dollar golden parachute guys. But these guys that have studied their whole life to be there.

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Do you think there's any level of that, people that are just upset because some a group of people are using a fucking meme dog to force?

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But absolutely, first of all, it absolutely has poetic justice know, like this concept of sticking it to the man, it feels good. It's got a feel good story. And I'll tell you who's kicking themselves. The guys that were sitting out in 2010 with their pickets outside on Wall Street saying that we've got to occupy it, hoping to take over the control of them. But they're just complaining about like, no, man, this isn't fair, whatever these guys, these guys to out a different way to do it.

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I don't think it was their intention to take down Wall Street because, you know, it's not the same situation. It's not like they're out of a job, whatever they just bought and they're making money with it. And it kind of turned into it.

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But here's here's what I want to do on that particular episode. We also got to stop short sellers. Whatever one thing is, kicking out a fund that a hedge fund that feels good because they've done it. This is an invite on big boys club. And all of a sudden these nobody's got them together and just not somebody at all in poker.

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Right.

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The what's going to be interesting is as soon as the stocks turn around, maybe these GameStop, maybe some of these other ones are trading in general. I know for a fact they're all going to change their mind and they're going to say, all right, guys, let's go ahead and just shoot this, too, because it's going back. These guys are after making money and they're not going to sit out on the money. And the fact is most likely at some point, the stock going to come back down to reality.

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These these people are going to make money all the way back to the hypocrites. But, you know, it's it's going to make people go crazy, you know, because right now they're thinking, oh, you know, these guys, they're all for making money.

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So I can't wait for that to happen because this whole movement against betters, I've seen this happen time and time again on Wall Street. It's on Wall Street. Bets happened last year during the February crash in the market.

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And they change your mind. But your second point, the meme stocks. Absolutely. It's got to piss people off. They have to go and learn about discounted cash flows. No one knows what with evitable tax. And they can get these certifications.

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Of course, there's all sorts of certifications, really difficult to get. And yeah, these guys are sitting there going, ha ha, my pencil has a ludicrous button and I'm going to turn these these called these bets into a ludicrous bet and they make a funny tick tock video and then they may actually make money.

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That's the thing. So these these old timers will sit there and say, you guys don't know what you're doing, you're going to lose your shirt.

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Well, they haven't lost their shirt yet. And it's been a while since they've been doing this long before GameStop. And the fact is, they're little funny pictures having an effect on it. So I'll give you one example. Last year when when the pandemic started, everyone was locked in, people having to do Zoome meetings for every single let's invest in. And they look it up and they they look at the wrong zoom company because there's a ticker symbol that they don't always match.

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So they bought a company that just happened to have that ticker and they shot up this unsuspecting company. The price of the stock's astronomically right. The other Zoome also went up. The correct one also went up.

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And these these institutional traders going, ha ha, you children, you picked the wrong stock. You don't know what you're doing in the investing world, but these children made more money picking the wrong stock than they did have. They picked up. So they took everybody away.

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They're not waiting for dividends on these things, you know? So it's it's crazy. It's like a perfect storm.

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Right now, though, I think everybody is looking for a way to organize themselves. Could you imagine it happening right now? Because like he was saying, I see in the group, I mean, I've spent far too much time as a father of four children. I probably shouldn't be on Reddit for fucking sixteen hours a day, but so be it.

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But what I'm seeing on there is a lot of people actually holding, for example, the kiddie guy that had fifty three came in. This guy has life changing money and yes, he sold a little of his position, but he's sitting there with what, thirty, forty million dollars in shares. I mean we're educated guys and I'm holding my stuff. I'm willing to take it down because I just like how history repeats its story.

[00:25:16]

Hold it to the grave. I'm that way. I'm like the moon. If the Renaissance happens and they go through the files, I want to be like that boy is one of us.

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Like I grew up with nothing. I went to prison. I've been through all these things. It is really just like he said, it's poetic justice just to see just to watch them stressed that right there, like ulcers are probably forming and all hemorrhoids. Yeah. Here's my I've never been stressed probably like this.

[00:25:40]

What stops the Robin Hood's, the strong skys, the dogecoin pointers from making fifty to one hundred million dollars, banding together and becoming the old fart head. This like so with great power comes great responsibility. Are these the people that change the wave completely? They go, they get their money. They're like, you know what I mean? One hundred million on stocks last year with that little bald guy with the fucking arrow that always goes up. I'm going to give 90 percent back to the community.

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Like, are we seeing that? Are we starting to see that happen?

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I feel we way will. We spoke a little bit of giving back the money last year when most of the stocks were crashing, they were making so much money shorting the economy and just they were cheering on the unemployment rate, the cheering on the world's going to crash and burn because it was hurting the stocks. And they're making so much money and they feel guilty to the point that they started donating that money. They found random causes to do it with.

[00:26:34]

But but they have that little bit of a conscience. Now, if they're going to turn around and create a participant and be a big fund, it's so hard to tell.

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Like, I just checked the Twitter accounts and saw what's her name, Alexandra Cortez.

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It's totally turned this thing on. Right. And she's she's a player.

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And Elizabeth Warren, you have people in Congress that are taking the side of Wall Street and it's hit on and say they're pissed off that Robin Hood apparently stopped people from trading certain stocks today to try and contain some of this madness in a piece about it. Hold on a second. It's fair when it's the big guys, but when it's the little guys, you guys are getting out of the way like you guys feel uncomfortable. What's the deal?

[00:27:16]

This is where I get confused. That seems so obviously illegal. Like they should. Who who wouldn't be pissed off about this, if you're truly unbiased and you just see the scenario, some described it to you, there's someone who's definitely wrong and there's someone who's definitely right.

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There's a bad guy and maybe I'm a good guy. Right.

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So so it's it's good that these people are speaking up here. I just let's here's an interesting question.

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What happens? Let's let's let's turn this around. Right.

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I've heard accusations of market manipulation and blah, blah, blah. Who knows if that's going to be true or not. It's interesting. I get both points and I'm also not an expert on it. But but but the accusations are being made toward Foschi bets for market manipulation. You want to know what else is manipulating the market when you stop people from trading that stock? Did you see what happened to price today? It's down like twenty fifty. I don't know what percentage.

[00:28:13]

And I think in no small part because these guys decided to come off the ballot, they they're just as big a player in manipulating the market and they're actually an organizer.

[00:28:22]

You know, if I were a regulator, I'd be asking myself these questions since having an effect on these prices and they're both having an effect, these retail people pushing the stock up and the fact that these brokers are blocking them to push the stock down, there's no free market. Who's the referee here again? Is it the FCC? The FCC? Well, I was going to say what happened.

[00:28:43]

That's fine. Like, they already know kind of what they're going to get. You know, they've done this before. This isn't like new.

[00:28:49]

What happens is they're like we either either lose twenty billion dollars this week and funds may shut their doors.

[00:28:57]

We might have like irreversible damage or we do what we always do.

[00:29:01]

We put our three billion dollars slap on the wrist. I mean, let's go to let's go to what's the dope snowboard hell up in Spain or whatnot. Kercheval.

[00:29:09]

You want to know what's even you want to know. What's even more interesting than that is what's actually behind the scenes. I haven't seen enough conversation about Citadel. The Citadel is the company that handles the water flows for Robin Hood.

[00:29:20]

Right. They make money every time you trade. That's it.

[00:29:23]

They don't care if you lose my temper.

[00:29:25]

In short, you are making money off of this thing and a lot of it, because yesterday was the highest volume of stock options traded in the history of Wall Street.

[00:29:33]

So they made the most amount of money on that aspect of it. You know what else happened after they knocked over this Melbourne Capital One? Citadel said, hey, I got a ton of cash laying around and I happened to have made up on unrelated activity to your demise. I'll go ahead and buy you. That is the most hostile takeover in the history of Wall Street.

[00:29:51]

I mean, they devised or at least they're that comfortable position and they don't have to worry about the regulators. They're just processing flows like the credit card merchant.

[00:30:00]

If it feels like you're sitting at a poker table with a chip leader, do you know what I'm saying? Like, they can just muscle anything they fucking want. You know, when you're sitting there and you have just enough to get in on the fucking blinds and you're like, yeah, I'm going to fight back. And Wall Street is sitting there with fucking stacks of chips, bro. Listen, when this all started happening yesterday, the hedge funds just bought Coles.

[00:30:22]

They just bought Coles on fucking GameStop to cover their fucking shorts losses. Now they're going to buy more shorts on the way back down. They're going to make more money. And the people that put the whole fucking program together and they're gonna be sitting at the table with an even bigger stack, also saying now you owe us money for pulling this shit and they're going to be.

[00:30:41]

Absolutely that is absolutely missing from the conversation. People talking about how these hedge funds are losing. I hate to break it to you. They're not that one did it.

[00:30:51]

But these guys look, I talked to Andrew, left the guy from from Cetron or whatever, and, you know, being careful with my words, he didn't seem too worried.

[00:31:02]

All right. I have a feeling that everybody knows what he is not their first rodeo, one one a fun went down, but the rest of them seem to be just fine. Absolutely. There's other ways to take this on. So, yeah, they're going to make money, too. Yeah.

[00:31:16]

You think Steve Cohen woke up, stressed out this morning? He's not fucking. Chuckles Didn't show up in the road. Showed up. He would be. Yeah. But like fifteen percent, one point seventy two. He just he's do not understand what. Eighty five percent still on the table. Looks like four point seventy two. You're going to make it back.

[00:31:32]

It's not this is not going to break anything, but it did create a nice fucking ripple which is a start. It's a start. We interrupt this program to bring you a word from our sponsor and it's a great one. Is there something interfering with your happiness or preventing you from achieving your goals? Like, absolutely. Well, better help will assess your needs and match you with your own licensed professional therapist. You can start communicating under forty eight hours.

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This podcast is sponsored by Better Help and Impulsive Listeners Get 10 percent off their first month at Better Help dotcom slogan back to the program. I have a question.

[00:33:03]

Well, that's the thing is these guys are used to playing these these big stacks and they're not used to even consider when when one individual comes up, that's not even enough money to meet the ante nowadays. Now, they've actually been out of a little bit and they were not prepared. So that's why they are in an uncomfortable place. Right? Right.

[00:33:18]

Are these, you know, Melvin Capital shareholders, are these people, like, potentially open to Sue Melvin Capital for, you know, they're supposed to be a fiduciary? You would one would think if you're shorting a company that hard and open yourself that much, you're not really thinking about the future. So like part of me is like, what happens if they get like the shareholder gets bailed out because of, you know, these companies are doing shady stuff?

[00:33:41]

Who pays that? How does that go down?

[00:33:44]

Yeah, I don't I don't honestly know enough about that to tell you.

[00:33:48]

But I'll tell you this. When you said that they shorted something really hard, think about short sales.

[00:33:52]

Like if you want to just open up an account, I don't think you can do it with Robin Hood. But if you want a certain account, you usually have to go through some extra steps, because when you put it down on paper, they say potential losses are infinite. Right? When you when you buy a stock, the potential losses is how much value? It's hundred bucks and go to zero. But if you're starting a stock, one hundred percent go to infinite and so you can all what you only have to share.

[00:34:13]

It's a short one share an infinite amount of money in theory.

[00:34:17]

In practice, not because so I think more the case is why did they, why didn't they get out earlier. I don't know how big a position to have based off of how close to infinite GameStop got. They probably should have cut their losses earlier or take some calls, whatever. That's what I want to know. I don't know to it's the money.

[00:34:37]

Not only that, but I bet you it's also an optics thing. I bet you it's an optics thing for the fund to say, no way we're going to take a fucking hold of the Internet. We're going to figure this out. This stock's coming back down. Imagine sitting there as it went to one nine to ten to to 50 to 80 sitting there. We're not fucking losing these shorts or a whole nine of these. We're not going to by it.

[00:34:55]

We're not getting beat by Elon Musk and just get your fucking short-handed.

[00:34:58]

Well, that's our Ken Griffin. Citadel came in with Stephen Cohen. They said, hey, Melvin Campbell, don't sell your shares. Your big positions will cover your downside, but don't sell them.

[00:35:08]

It's again, I want to reiterate, this literally feels like a war where I'm watching the leverage go back and forth. Like once this hit mainstream media yesterday, there was a moment when it started to really, really, really spike, which is you were here. That's when I that's when I bought in and bought some options. And then the credit got shut down. Wall Street bets. Right. Or was it the discord or both the Reetta went private.

[00:35:32]

Yeah, the discord got shut down for unrelated reasons. And the company goes private on a regular basis. You know, a lot of times when they getting a lot of heat, sometimes it's a joke, sometimes it's a legitimate change. I don't really know yesterday exactly what it was, but it's up to the moderators to temporarily stop the conversation.

[00:35:51]

Gotcha.

[00:35:51]

Because when that happened and Portnoy spoke on this and I backed him on Twitter, every time a group or a person has been de platformed, their message is activated and amplified.

[00:36:05]

It just it just it's like you get slapped in the face in your arm. He comes back. So then I felt like the leverage was back in the creditors power the by the retail buyers power. And everyone was preparing today to buy to go crazy was going to be, you know, the second coming. And absolutely. We woke up today and you can't do anything. Yeah, and that's the things, right, like they actually got some pretty high profile and some big heavy hitter allies and they got Mark Cuban tweeting about this, obviously, before all this got to Crazy Musk, Mosqueda.

[00:36:41]

But now you have politicians, big time politicians that are weighing in on this and are also outraged about the fact that there's this back and forth and they're taking sides. Right. And they're taking them from much more philosophical reasons than they can if you. And it's it's absolutely is. I agree 100 percent with that. Yeah.

[00:36:58]

He called he called it a war, which it is. And, you know, we all know what the right side is. We all know the side that we want to be on. We all know what the side that we want to win, that we want to win. Excuse me, but unfortunately, like right now, that side is is made up of a bunch of people with knives facing off against a bunch of people with nuclear weapons. Like this is not leverage has not swung in any way.

[00:37:18]

You saw point zero zero zero zero zero zero zero one percent swing in leverage yesterday, like bro. And when you see that lever swing to favor the little guys, they'll just move a lever in a different department to fuck you anyways. Like it's not this is not this. This all feels great. And it's as as you said, is very poetic and we've talked about it. But honestly, like, this would need to really keep up and really gain like some serious fucking traction, even put a dent in the system that is American wealth.

[00:37:48]

But even that one percent is made a huge change.

[00:37:52]

I grip the same exact way that was going to be my playwrite like so.

[00:37:57]

So maybe you're not playing with wait for you look at any type of change in the history of anything. Right. Like it starts with conversations and the conversations are being it doesn't matter if it was just, you know, you can make the price of a share go off with very little money. That's the penny stocks are famous for. There's nothing when the property's fallen. So in theory, like it's whether or not somebody is willing to sell something in a certain price that that transaction is posted and that price is a new price.

[00:38:22]

Whether one dollar was changed or a billion dollars was changed, it's definitely the case with Bitcoin. But the fact is these conversations are no longer these light featherweight emission. This is a very, very heavy thing. Conversations, especially in every major social change from gay rights to whatever marijuana legalization was trying to come up with some of the reason why. That's exactly how it starts with these types of events.

[00:38:48]

Yeah, they're used to picket fences. This was like put it this way. It was so much that they did this blatantly in our faces, knowing that there's maybe knowing there's some sort of repercussion coming.

[00:39:00]

But they did it right in your faces because it's that strong. I guarantee they were so worried what would happen this morning. I was up with you last night. Talk with many friends coming in. They're like, where do I put money? I'm like, first off, we gambling here right now. What's going on? We're talking to banks about it last night. And there's this question of like, yo, what can happen here? At the end of the day, no one really knows what's going to fucking happen.

[00:39:21]

That's always the case with stocks, but especially when you get into the volatile stuff, which you talked about earlier, companies. What terrible fucking technicals. GameStop, I hate to say it is it is a dead enterprise.

[00:39:31]

It was I didn't kill five hundred or one number one stock was that it was like the Russel's no stock for a while. Like wasn't it something like that was crazy like that right there.

[00:39:40]

That right there should be jacked up somewhere like, like let's be honest, these games is GameStop going to come back on technicals and, and mechanics and become a and stick in the Fortune 500 as a stock that people want to own based on profit and gain? No.

[00:39:57]

Well, I agree with your point, but let's just say for sure. For sure, sounds like if the Winklevoss have their way, they're getting all their USD capital in the back, say the Winklevoss hippopotami increase the same thing you do with the hippopotamus.

[00:40:12]

They call both of them. Yeah.

[00:40:13]

Is this war winnable? Is it can we win can we win this war with the win? Right. Like what is what is a war?

[00:40:20]

Like, you knock out all the hedge funds and everything. Let's start with the trading opened back up, like what happens here. Is it because I mean, that has to be addressed, people have to be going crazy about the situation because it's no longer a free market, but I don't think it ever really necessarily was, but it looks more like more free than it does now.

[00:40:40]

I still open up. I mean, it does do it for you right now.

[00:40:44]

And they locked it out this morning because you see traders you want to do want to know who I feel that it is the people at GameStop, because those guys, whether you give the owner and a half shares because you're the owner or because you're the company and owns shares, you can sell some of these shares and get yourself out of these people. They can reinvent themselves with a lot of money that could make up. But the problem is that this is the regulation.

[00:41:06]

If they sell these shares, knowing that they're not worth that amount of money to unwitting customers, they start getting into regulatory problems. And so now we're talking about these companies. Even if they didn't cause the public, they just need to fraudulently unload these things, knowing that they're trying to get rid of these stocks at a high price. That's kind of where the company comes from. So they're they got to go crazy. They know they've got to be with so much money right now.

[00:41:30]

But if they sell to either see the company or to buy a yacht, they're in hot water.

[00:41:35]

So they want to go.

[00:41:38]

Even if they wanted to unload their shares, they couldn't because they can't sell them on any of the fucking platforms. My question my question is this. On that you see the SEC halt trading on stocks. A lot of times from an institutional or from an administrative or legislative or whatever you want to call a mechanical standpoint, they'll halt trading because something is just getting crazy volatile. Like we're going to slow this down every take a fucking breather before you do what you're going to do next.

[00:42:02]

Right. You see it all the time with penny stocks and all these other stocks have that increased volatility. One hundred percent shifts. You know, either way, is this the first time we've seen a private institution like Robinhood make that decision for the SEC? I don't know that they did. I don't know that they did make the decision for the. It does not make any sense that Robert had woke up this morning. So I want to do the right thing and put an end to this madness.

[00:42:27]

They really were questioned yesterday.

[00:42:29]

This happened with other brokers and whatever. I can't imagine. In fact, I even saw a tweet. I have to see exactly when it came out where this kind of ambiguous. They don't feel comfortable with this. I don't think it was their own willing to step in on behalf of the SEC. I like to think they were pressured into it. It makes no sense. There are already innovators there already. They've already shattered the status quo of how things work.

[00:42:55]

It doesn't make sense for them to start behaving like the traditional ones out of nowhere.

[00:42:59]

So what happens to Robin Hood if I'm a user of Robin Hood the app? Do I continue using it? Well, you don't have much of a choice. You know, like there's other I guess you can go on to different platforms and maybe they'll end up having to do the same thing. Once again, I don't think it's coming from internal board conversations. So you're kind of screwed. You know, like I said, maybe you'll find some other platform for now and maybe there'll be a cat and mouse game or whatever.

[00:43:23]

But I don't know.

[00:43:25]

I think Robin Hood, like Robin Hood, is overcome some serious challenges. They've been criticized because they have to terrible execution, because they're slow, because it can crack a security issue, because the run.

[00:43:37]

Yeah, they've had a lot of outages during last year. Also, when the stocks were doing crazy things, they had outages during the most important days of the stock market. Both they were dropping 10 percent or 10 percent.

[00:43:48]

And people. Yeah, but people came out to each other like, yeah, we're going to leave whatever and they'll love it for whatever reason. They're like, I don't know. I have they have a love hate relationship with they have such a fun interface.

[00:44:00]

Look, that's what I was just talking about, the power of a good OS or the power of a good fucking interface that it's so pretty. You're lucky you're not going to stop.

[00:44:11]

I don't want won't say what it is, but it's complicated. The one you it's complicated and I hate. And you got to like like I have to call some on the phone. They got like are you you you got to send some ID, you go on Robinov what do you like get an account in five minutes. You can upload money like you're done. Right.

[00:44:26]

Not only that, not only that, you want to get to the stock options which are complicated. I hate to break it to people like they are. But you get in there like I think Apple is going to go up. You look up Apple you like. Sure. Option. That sounds good. You go through the prices, you you go find what you can afford. Right. You got two hundred bucks and you've got you have no consideration for strikes or expiration means.

[00:44:43]

Like I got two hundred bucks on my guts. Nothing's going to go by the call and Robin Hood stops you because it wants to make sure you do the right thing.

[00:44:49]

Goes just to make sure I process this.

[00:44:51]

You think the stock is going up or down and you answer the oh, a green arrow. The color coded picture goes up and then you get confetti to sell it. Yeah. When you buy it, you buy a stock, it blows up. Although, you know, of course, that it's great that they figured it out.

[00:45:14]

The fat people in Lollie, with the bones, with no bone structure, were using Robin Hood. One hundred percent. They were sitting in those little incubators on Robin Hood looking at the confetti explode.

[00:45:24]

It's a beautiful app.

[00:45:25]

But didn't you just say something about it? And I pointed posted that like sixty percent of the trades are done with Citadel and. Yeah. So, like now it makes you start wondering that maybe Citadel is in collusion with them and doing their thing. And then what happens and how do they think about you think about these mechanisms they made. That's like something I do for my daughter, who's four right there, like congratulating you. Hey. Hey, dipshit.

[00:45:49]

Are you sure you're not being a dipshit right now? Check yourself like that. Just you see what I'm saying?

[00:45:53]

So, like, they kind of already like in a way it feels like they built this to move this class action lawsuit filed against Robin Hood and the Southern District.

[00:46:05]

You know, it's it's it's like it's it's really tricky because I think the city about like what's what's there to collude? The only the only way they're the biggest way they're making money from this is from people making trades. They don't care if you're going up or down or manipulating. Stocks are behind these stuff. They just want lots of individuals to make lots of little lakes and get a lot of confetti. Animation that's changing.

[00:46:27]

Everything that happens is up there. Their collusion is let's get people interested in the stock market right off the bat.

[00:46:33]

They're the they're comfortable maybe front loading to the speculation, of course. Yeah, but that's what I was saying. Like, they don't care. They don't care. The stock, the application goes down. They come back to try explaining frontrunning to someone that's that's clicking the Green Arrow on the on the candlestick charts.

[00:46:55]

And then I heard somebody on Twitter saying, well, he thinks the obvious things are going to start taxing these these trades or whatever.

[00:47:01]

Like they're not going to care about that either. They're losing money. They're losing money on the spreads and losing money all the execution. What the hell is a few extra cents on this thing? Like go on for ten years ago for the moon when the stock price goes up one hundred bucks, what the hell is fifteen cents for this particular trade? It's not stopping, though. That's the good thing.

[00:47:19]

At the end of the day here, regardless of what it does to combat institutional trading and hedge funds and how big that wave actually is, the big wave here is transparency. The big wave is blowing the lid off this fucker and showing people what's really sitting underneath it. You know what? I'm Sanamein. There's a lot of people that woke up this morning like, wow, this is fucked. This is fucked. People are making money and private private interests and the government are saying, stop making money.

[00:47:42]

This money belongs to people that you aren't as good as you. You don't deserve that money. Like we're seeing it.

[00:47:47]

We know now is a crazy house of cards, not one to allow to know what's going on. And this could open up the can of worms. That could be so.

[00:48:00]

OK, that's the biggest thing. Now is what's the takeaway? Where do we go from here? Do we flock to cryptocurrency? Coinbase is trending on Twitter right now. Doch, Coinbase, everything goes up like a client. This is the answer in coming up with a decentralized system.

[00:48:23]

What do we do? I not. I mean, these things are just numbers. They move around like you're buying dogecoin. You have these fundamental people go. Well, let me explain the thing about the blockade and the way that the fiat currency is the gold back. What was it like? And then you got the kids going to you don't understand how this technology works. It's great because you have the ledgers and whatever.

[00:48:44]

Like, it doesn't matter that the thing went up and it went down like it's another option for you to be able to pick it. Like you all talk about abstract things. I'm fascinated by volatility instruments. These are super complicated to explain, super complicated to understand.

[00:49:00]

And then they layer complexity on top of complexity. These are math formulas. They're they're not even you can't even come close to something in reality. But those numbers move up and down and people can make money by options and calls or whatever on these these crazy these math formulas. And they don't care. So sure. I mean, throw in some some cryptocurrency into the mix.

[00:49:19]

But the important I, I love what he did last year because he he also was a unified voice because he's got an audience that he did hold the lid on this, you know, on this elite approach to Wall Street.

[00:49:34]

Now these people and supposedly doing sophisticated things like do I you know, I forget what stocks you go for, but I like that I use this because I feed my dog. There's food. So I'm going to buy this stock and it will go up.

[00:49:44]

And he made tons of money. And then and then what's also serious about that is when he lost money, he was cool. But he goes, guess what, guys? I lost money out of the game, but I lost my money. Not bad guy. I did not pay that guy commissions to lose that money. This one's on me. So that's that's more profound. I think.

[00:50:03]

So it's even logical, even with the crypto to and, you know, wherever this goes from here, it's just like, you know, talking to somebody about about it this morning, decentralized currency. And they were like, well, the good thing about crypto on decentralized currencies, the government can never touch it. It's untouchable by the government. And I was like, that's great, that's great. Like, they can never fuck with the block chain.

[00:50:25]

Like, they can never take the money out of your wallet until they can. I said, what if they tell you the new tax rate on crypto capital gains is ninety five percent or what happens?

[00:50:33]

They make it a lot.

[00:50:34]

What if what if they say what if they say yo if you use are unfounded in ownership of crypto you're going to jail for ten years. So at the end of the day, yeah, we're decentralized. We don't go by the same rules as you do from the jail. So that's that story becomes less intrigue, you know what I'm saying?

[00:50:51]

So it's so fun. It's locked in. Are we even go to the moon at this point? Why am I wearing this exact scene?

[00:51:00]

But he's going he really wants to go to the moon. I thought we were going to your astronaut. I miss the fucking flight, dude. I miss the flight.

[00:51:09]

Oh, what's crazy is I mean, your first point of blotches is that the people are going to say, well, I can't text you because the technology allows us to not do that. Your second point is where it's at, right?

[00:51:20]

Like what happened with Silk Road, like, all right, here's your eBay or Craigslist or whatever for for buying whatever you want to buy with it, because those Super Anonymous, whatever, and now they're tweeting from a jail cell.

[00:51:31]

So, you know, the government does ultimately have a bit of a strong hand. They can always play, they can always make an example out of individuals and kind of scare people out of it.

[00:51:38]

So, you know, as much as you can be centralized government, still the the nature of cryptocurrency is global, right? Yeah. So but the government.

[00:51:49]

So what about what's a United States government? Could only Knuble what's the international government called the one that comes after if you go on the wrong Interpol, Interpol, Interpol, just they're like, no, no, no, no, no, it's decentralized.

[00:52:03]

I left America. They can't touch me. It's global. They're like, have you heard of Interpol? Well, they they exist in every country in the world that they get on extradition. Like, my my question is, once again, at what point do I just eat the Matrix steak, invest as much money as I can, and Amazon too big to fail, take the fucking returns and eat my filet mignon knowing that I'm a part of the system that's destroying the you know what say well, fuck.

[00:52:29]

Here's what's funny is last night I was looking up. I was like, how big look this up? How big is the financial like the stock market? I think it was like fifty five trillion dollars. If I'm correct. It's like around there is that I think that's good.

[00:52:40]

I'll tell you right now, the market cap on the entire sixty eight point five trillion. There you go. OK, so look this. Seventy quadrillion trillion.

[00:52:46]

What is the derivatives market total. This was crazy.

[00:52:50]

I have I have the answer to it. It's like it's it's crazy. I looked it up and they said it's like one point two trillion dollars.

[00:53:00]

So, yeah, that's that's it's like a swamp.

[00:53:03]

So it's a game that we're not able to. Right, it's like between two big counterparts, and again, they're really convoluting there's millions of forms of it, but just understand people are making bets on top of that's my whole point here is everybody's like, oh, the hedge funds. Oh, all these things. These motherfuckers have got one point two quadrillion dollars. Some people say it's ten times the world's GDP on these contracts that make no sense. Last time we got caught in swaps was the housing crisis.

[00:53:30]

People think because people want backside in their homes, that's why it all went to shit. No banks could have restructured. We could have pushed things out like we're doing right now. But there was 15 trillion dollars of swaps, people betting on if you were going to be right or you were going to be right, I'll bet you two hundred billion dollars, OK, you had one hundred to one and won it back sided. The money disappeared. I've never heard Cuadrilla.

[00:53:55]

Let me let me read from I saw it last night.

[00:53:58]

I just write a book I wrote and I published it long before this madness takes place about Wall Street bets and says, you know, the World Bank estimates that there's a six to nine trillion dollar market cap for the companies, but the derivatives market is an astounding one point two quadrillion.

[00:54:16]

Just to put that into perspective, for every dollar of value that exists in a share of a given company, the kind of thing to explain to a five year old. Seventeen dollars exist in this acronym. Laden leveraged, counterparty dependent, abstract variety that must be fed chooses to go right back is what we're talking about. One dollar of serious money versus seventeen dollars of your own money.

[00:54:40]

So we're not to that. We're not even at the table like like remember when I talked earlier about the hedge funds having the trip leading stack and we have the little the ante just to buy in. We're actually not even at the table. The table is so far above and away from us with hands that literally move the wealth of countries and they gamble entire GDP of countries on one fucking bet. Dude, what's crazy is what I was saying. Some even say some of these swaps.

[00:55:04]

I think of it like this. They did a really good analogy. It was it's somewhere on the Internet and they used gambling. Right. And it would be like you and me betting on Jeff has a 20 and the dealer showing like a six or seven. Right. And and I'm like, I bet Jeff is going to win. I bet you a hundred million dollars. And you're like, well, of course he is. I don't want to dump that, but I'll go against you if you give me two hundred to one on the opponent.

[00:55:30]

Now, the money's on the table. There's no new money added to the fucking table. It's just us talking about it and us trusting that the other person would do it, because the likelihood of me not winning is unlike, you know, it's very unlikely. But when it happens, it backside so fast. So my question was always like, wait until like the redit world and stuff. So understanding derivatives and swaps and like how they can like fluctuate like corn and orange and soy and oil and these things that can really actually have a problem.

[00:56:03]

And now here comes the other side of that, them doing that, them uprooting the system could destroy all of us in its existence in the wake of it, because we've allowed these people, these financial guys, gals, whatever to prop us up like this. So all it takes is one thing. This is why probably they don't want these kids, all of us, to come in and see their game because they're not worried about the thing they're showing us.

[00:56:27]

They're worried that shit, they might be smart enough to see the shit.

[00:56:30]

We're not showing why and then what happened. I think that that's a great question or no. Let me make it more complicated than that, because in this scenario, that that scenario would have been good a year ago. But now we have a different scenario. Where you betting your two hundred to one odds, whatever, on this blackjack hand actually has an outcome on the game. In other words, if you're going to be hard to squeeze it into it.

[00:56:56]

But the fact that so many people are making these side bets, using these derivative markets that have no effect on the underlying is not a case anymore. The reason why the reason why GameStop is going up is because the mechanics of it what's happening is GameStop is a company that was smallcap.

[00:57:13]

Right. Makes it more susceptible to price moves with less money, number one. Number two, it was heavily shorted. All right. And number three, these guys go in there with really with a huge amount of volume, buying out of the money, dip out of the money call options. They have short term expiration people. So there's three participants, the people that are short. Sure. GameStop, of people that are wrong with what call options.

[00:57:37]

And then there's the middle guys, which are the ones that are selling these call options are kind of neutral or whatever. I don't care if it goes up or down. I'll sell you the option on the premium and I'll hedge my bet based off of what's happening with the price. The more the price gets close to that, the strike price, the more that they have to buy the shares with their own actual money in order to protect their interest.

[00:57:57]

And then that's called the hedging. And then if it goes up even further, they have to do something called gamma hedge and they have to. It's complicated, but they. You're forcing these guys to do their actual money and now the stock price is going up thanks to this, and now go ahead and bring this short squeeze situation out of it, because that's not an offer. These guys have to cover their sports by the stocks.

[00:58:17]

So so this is a really perfect storm. And it's a formula that they figure it out and they they're actually having an effect on these on the price. Usually when you see a price go up like it did last Friday, almost a week ago, usually every time I've ever seen that, it comes right back down to where you started and what happened instead, it kept going up. Nobody's seen this before because more people found out the news, found out the news is pumping the stock up to I hate to break it to you and obviously went up like crazy, you know, and it's it's it's the more popular this story became, the more people got into, the more likely you were to win.

[00:59:00]

The thing is, they're like spreading that on Reddit. If you watch in there, it's actually slightly brilliant, but they're like doing the math on how many shares are available. And they're like, guys, if we don't sell these shares, these these naked have to cover and it just keeps skyrocketing.

[00:59:14]

Do you think people are panic selling right now or do you think people will really hold these to be on?

[00:59:20]

What's it at right now? Because I watch it go back up today a little bit like it got pounded on and then like it was up it went like down to one hundred and twelve and then tripled in 30 minutes.

[00:59:29]

And then and then the moment it got up, that's when they restricted the no.

[00:59:34]

So that last night during the day today on my way over here, it was making its run back. So it was it was well on its way up. So I figured how high. Who knows. Correct. I think I think you're going to see people. I think what is it that two to twenty three.

[00:59:48]

Thirty seven. And it made a high of five. Thirty seven point three. Yeah. Wait so did that five. Did that five thirteen smack too short the shorts.

[00:59:58]

Well the thing is, is what happens is it went back up, they went up to three times what the five thirty went down and went back all the way back then it went back up like this is not normal.

[01:00:06]

People are holding what it shows you. I mean, look at the volume. Yesterday just you said it was the largest option volume day in Wall Street history. Like today, the volume just shows you take. And if you thought that was crazy, I would say you could ask pretty much anybody if they thought more people would buy today, if it was open, I think the consensus would have been yes. Yes. Yeah, for sure. So if that happened yesterday with that volume, what happened today?

[01:00:28]

So I think that's the math around there, like, oh, my gosh, we're actually going to be court where we this could go two thousand.

[01:00:36]

Ten thousand. Is it is it super hot right now? And can this heat be utilized on Monday? If the trading opens back up? Will it will it open back up?

[01:00:49]

Maybe tomorrow? I'm hoping tomorrow. I'm hoping tomorrow. But Right. Do we do we need to hold? Here's my thing. Here's my thing. And, you know, I don't feel bad for Wall Street, but it's kind of sucks for them. But I feel like people have been beat to shit all year. They're stuck at home. They're dwelling on this shit. They're thinking about this shit. And I just don't think that they're going to be like, I'm cool, because you have to look at this.

[01:01:11]

Most of these people who didn't sell, they're taking a beating. So they've kind of like made this logic in my head like, well, I'm down eighty percent.

[01:01:18]

So let's let's let's get some ten days and hold this bitch until it goes back up right to the moon. Correct.

[01:01:24]

So I think the big fear here is, is this looming? Does any listen, at the end of the day, look at Wall Street bats. I mean, they've almost got five million people. What was it a few days ago was like two million. I mean, this is utterly absurd. I have family members who I don't even think understand what the stock market is. I don't think the only with digital money is not a checkbook. Right.

[01:01:46]

Or some cash in their pocket. Like what is this like? Like, oh, son, what should we be doing here? And I'm like, oh, my God. So it has this semblance of hype and I want to be a part of it. And that's what Bitcoin did. You know, in the beginning, I truly think Bitcoin fell in twenty, seventeen, eighteen because a bunch of people were buying with credit cards and things they couldn't afford.

[01:02:05]

So when it started moving back on them, these are people who couldn't lose the money to begin with. They started like rationalizing why I can make a thousand bucks back. Let me get out. And when retail investors, lots of trades in, lots of different people move out, just like he said, the stock's going to go in the direction of the momentum. Correct. So I feel like people are seeing that again.

[01:02:24]

This time, though, this is a regulated, regulated security. It's in the real world. It's getting mass media attention. I mean, like you said, AOC, and I think even Ted Cruz was like for this. So you're getting bipartisan on both sides of this. I think Wall Street heads aren't going on vacation today.

[01:02:44]

That's probably the day by one group. Steve Cohen just tweeted, oh, what he say over here?

[01:02:51]

He goes, Well, no, I was looking at this other one. Still, I'm not feeling the love on the site today. Trading is a tough game, don't you think?

[01:03:00]

I just poke just poke in a huge community. An important women's prison prison for Robin Hood. Steve Cohen, whatever, Steve Cohen responded, Hey, Dave, what's your beef with me? I'm just trying to make a living, just like you have to take this off line like that, like he wants me even the hard cash from outside. The thing is, is El president will show up like four million people at this point like you. That's a bad person to step again.

[01:03:25]

Like Chamitoff, these guys, all they've been doing is good for this this world. Let me come off as a hedge fund exec or ex hedge fund, but he's like part of the people. He's even saying like, yes, he's been a corrupt game. That's wrong, you know, so we've got to show what's right and get it done.

[01:03:40]

But my my favorite tweet that I saw was somebody saying now the FCC has to outlaw outsider trading, which is hilarious with doing like, hey, where are you going to do it anymore? Now, it is cool to watch the big guys that come in and when because they have wait a little guys, they don't have a lot of times they don't want to speak their voice and want to break their anonymity. But you have big power players speaking to those people do so regardless of how much money, what percentage of the stocks they're controlling, whatever it is like once once these people spoke about it and you have government celebrities have a and which is kind of everywhere.

[01:04:15]

Yeah, sure. Hollywood's probably going to weigh on any moment. It becomes an actual movement.

[01:04:22]

Hollywood has I think everyone I've seen in Hollywood like I'm in it. I mean, Dobra posted like AMC one, two, three, you know, like a fun little thing.

[01:04:31]

Yeah. Posting about it, holding the line. I like it. Who's at the front with the Braveheart's.

[01:04:36]

You might be the Muhly might be rocking it. Come on now. Spin that thing around. Let's go everybody.

[01:04:41]

Everybody I talked to was just waiting on the Nokia boom today and then it got fucking smacked around. Yeah.

[01:04:46]

The thing is, I was just tell people in life in anything consistency, like if you want to win it something, just beat it, keep showing up. Right. Like you're going to chop a tree down eventually if you just show up, like it's going to probably suck at first, be hard and most people give up.

[01:05:01]

But if you wait 10 years to become an overnight success.

[01:05:04]

Yeah, I was reading something about like retail traders and like institutional investors and it was saying something like, you know, and it comes off the Internet, so don't quote me. But it was something like the retail investor on average holds their trade six months where institutional hold trades ten years. So it's like that right there. Just kind of explains what's happening here. Like, it's just it's weak hands, you know, and what.

[01:05:26]

Yeah, what you should do, because it's a brawl once again, not to bring it back to the gambling thing, but there's a reason the house hates to 17 and everybody sits there and they they look at me and they say, I've got a fourteen and I'm facing seven. I don't know. There's been a lot of big cards coming out. They're going to say, I'm like, bro, the house hits on that hand. Do what the house does.

[01:05:47]

Yeah.

[01:05:48]

Mimic their behavior to earn like them if they're holding, hold the fucking stock till the fucking moon.

[01:05:54]

Yeah, it's great. I'm going without you. We're here. I'm here. I got my naked hands on it and then you come so prepared.

[01:06:01]

I thought I was going to have the outfit took me down to hey guys, I hate to do this to you. I'm having a ton of no time. I'm not going to let you do this because I will not have this done to me. But, Jamie, thank you for your time. We appreciate you, bro. Thanks a lot for having me. Of course. But of course, best of luck to you. Thanks for that first night.

[01:06:22]

Now I'm going to let people fuck me down there, done the wild, crazy, crazy times, man.

[01:06:29]

It's just crazy to chase. What do we do? Because I'm down some money. Do I hold the line with my fucking boys? We hold.

[01:06:39]

Let's go. Let's go on the fucking line. That's all I got naked.

[01:06:43]

Zach, can I get I got I'm also dressed for the trip that you guys are trying to go on, so I got you. Yeah. OK.

[01:06:49]

And then just watch Wall Street collapse or build back what happened.

[01:06:55]

Yeah. Watch, watch. And you know, I want to just like I'm not a financial investor, I'm not giving advice, but I think I can offer a little bit of insight. I came from nothing. I went to prison. I built my success from the ground up and I learned that it comes slow. But one one thing I've really figured out in life is people's emotional control of things when when it comes to money and investing. If you can break that up even a little bit, you have a much better chance because emotions are hard to control as is, and they cause us to do things that we regret later on in all facets of life.

[01:07:28]

So one thing that I did when I was had a lot of emotions and trading, they picked something that I was already wasting money on. Maybe I went to movies all the time or I went to the club is two hundred bucks a month. What I did is I looked at it like this. I'm like, listen, I want to be in the game. I ain't rich, but I want to participate. I can't take crazy swings to put in ten grand and lose two G's.

[01:07:47]

I can't take it. So what I would do is I would just put in two hundred bucks every month to the things I liked and I would forget it because to me I already blew that money. And the sheer fact you stop doing the things. What did you stop going to the clubs.

[01:08:00]

Yes, I would substitute correct. Otherwise I'd have gone broke. Right. You have. To have, like, conviction in what you want, like it's it's not hard to be successful, it's it's it's arduous. It takes a long time. We think it's going to be. And it just the second you realize it takes time and my only advice is I can give to people is ten years ago I was a broke nobody hated by everybody walking piece of shit in people's eyes 10 years later.

[01:08:28]

I don't remember what that was like. And I didn't do anything crazy. I just was consistent. Every single day I said, fuck the noise. They're always trying to distract me. Everything in the world is trying to. I just want to make my life better. How do I do it? The way they're doing it. I just started buying. That was it. I'm like, listen, that ten grand for the year's going to go on anyways.

[01:08:49]

I'm trying to get pussy or do whatever I want. Baby, you know me. That's prior to our marriage.

[01:08:53]

I love you, you know.

[01:08:55]

But the idea here is is like I just really think we need to educate people more of the chance they have. Right. Because a little bit of money and all the time with, you know, consistently with time equals. Well, money. Patriotic buying. Yes. Plus time. Well, you're doing it. You're still doing it to this day. To this day, you're telling me how much you unload on bitcoin every day. It's wild.

[01:09:15]

Yup. Twenty five grand every single day. I buy every single day. And it's I it's because, you know, I want to buy bigger pieces. I believe I've done very well in the markets. This year has been crazy. Right. It's it's been you know, last year we've done very well. But I like the idea of even me managing that craziness. Right. So some days I buy at forty thousand, some days I'm getting a thirty.

[01:09:37]

So it feels better as my account's going up and it's less like, oh my God, I just lost my whole house or oh my God, I got to change the way I live now. I can't go do that because that's when it really starts messing you up is when you, like, change the narrative of your future. Yeah. Like I lost ten grand every I got a I got a one bedroom apartment, I got to sell my car.

[01:09:56]

And now how do you ever get back on the winning path again when you're like constantly debilitating yourself. So that's always I just tell people, I think people more of this would take place, more of quote unquote. The little man would have a fighting chance if they were just consistent.

[01:10:11]

Yeah. They erased the negative things in their life that are completely pointless and mindless and they start building their future.

[01:10:17]

And also and that's such a great point. And also, I think goes along with trading at your your level of expertise. I think there's so many people that see this this action and they see all these people, oh, this guy went fifty to fifty million, which, by the way, bravo, that's fucking compatible. But for the average person who's jumping and trying to do that, filled with emotion. Yes. Scared trading. They get in, they drop 10k this morning.

[01:10:40]

They call their broker. I saw the GameStop news ten GameStop. It's now four K they sell. They take a six thousand dollar hit because they're not informed, they're not doing what they should be doing. Your system is very smart. Trickle money and trickle money in over time as opposed as opposed to putting it into a savings account periodically, put it into the market, put it into some blue chips, put it in some midcaps, whatever the fuck it is, and don't try to trade.

[01:11:03]

I mean, that's my personal opinion. I trade it for like two years. I probably I probably is an inch from, like, beating my wife. And I keep making all my friends. You're like literally a top, like you have a great win, like, I mean a great win. And then the next day it's like a low.

[01:11:19]

It is great. It's like your best friend, like just cheated on you with your girl in your bed, like with your favorite stuffy or something right next to petting your dog.

[01:11:26]

Like it's just you're like, how did I come to this. Your job has become being a professional blackjack player, you know what I'm saying? Like you're out of your out of table. You're a little bit more informed about what cards are going to come because you've done studies and stuff. But at the end of the day, like who knows if it's going to be a three under the eight or a fucking ten or seven, you know?

[01:11:44]

Yeah. I saw your tweet this morning to go to prison. You said he has his own FSA and he's had his own episode. This.

[01:11:51]

Oh, yeah, of course. Know especially having you on today. I'm like brothers. There's too much here. But this is fun. I it's great. This is the last thing I'll say.

[01:11:58]

I saw your tweet this morning. This would be crazy. So I mentioned the chase built the Mavericks Club and the overtime crew. Yeah, he power Sleepify who does the premium subscription based models if you don't want to do only fans. We had some of our VIP would love the power Wall Street bets community. We truly believe we can build something for this movement that we've become so powerful that we can even the even the playing field against these clusters of human beings.

[01:12:21]

That would be wild. That would be amazing. I would I would love to do it. And I think we could I actually think we could do something that disrupted a lot of stuff. Just imagine, like, first off, there's tons of money being made. Imagine like a commutative, like hold.

[01:12:35]

Right. Well, we could all vote on what's happening with it, right. Like just think about that.

[01:12:40]

Think about five million people voting. Can you guess how is going to be outlawed after who knows. But like I can tell people what I've traded, eight million people can go on their Twitter and say, I traded this position, you know, like I'm in I love it. This is what's happening. It's just I'm curious is what you're going to get away with with enough money? We could probably get away with the same shit there.

[01:13:01]

Again, no tears. Just say it. All right, so we'll end it there. Chase, thanks for joining us. Love having you. Yeah, yeah. Well, yeah, we had you. Yeah, but I hear you. Yeah. Maybe did who. No, no. She knows I am your new boss in many ways. Thanks. Let's do a balsom hit that subscribe. I hope you learned something.

[01:13:19]

I will see you next to the moon.