Frieberg is a treasure of the pod. He has a holistic view, not oversimplify things, pretending he knows the answer which shows he is the wisest one. Always eager to listen to him
he's just way too pro elite, nothing to see here, global order is fine as is He's acting as if everything would have been perfect if not for the lockdowns Delusional
This was his best one imo. I appreciate how we always zooms out to look at pretty much every topic from a kind of ’first principles’ perspective. Economically and socially.
I would love to have one solid hour of Friedberg just talk about science. He simplifies incredibly complex topics with ease and shows the relevance to our daily lives. Probably my favourite person from this podcast.
I do kinda perk up whenever Friedberg jumps in because I can't predict or don"t always know what angle he comes at any particular topic. Even when I can tell what his bias might be overall, it doesn't always determine his take on a topic.
I’m a fan. But as a career banker, this was difficult to listen to. 1. A bank that offers ‘vault service’ for holding cash isn’t a bank. Banks are required to serve the community in which they operate via taking deposits and making loans. 2. A money market fund doesn’t make ‘loans’. A real MMF simply buy t-bills and short term depos. Anything else is not an MMF. 3. SVB failed due to poorly managed concentration risk. Their balance sheet primarily consisted of assets AND liabilities of speculative tech startups and small businesses. The liquidity shortage was a function of this risk.
Surprise that the ego squad who talks about which country they visited each week like any normal people give af are a bunch of elitist azzhols. Woah. Crazy.
The shock on Jcal's face when Chamath nonchalantly said 'dumb tangent 😂 Also, Friedberg deserves better companions during his science corner than these three! Time for a spinoff science corner podcast!
These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this only the beginning!
People fail to understand the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend and im comfortable with it!
@@ambertraceyy Over the years, I have learnt not to trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time. Still a millionaire.
@@Andersonstew My advisor is ‘’HEATHER LEE LARIONI’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
The bestie bailouts. Good for you guys. All these bank issues had me worried about the struggling billionaires out there. Glad the working class can step in to save you. 🙏🏻
@@aaayyy1953 Well, paid for by the tax payers. Because billionaires forget/ignore that there is something called fractional reserve banking and didn’t bother to do their due diligence because who cares when you always get a bailout. This is why capitalism doesn’t work, because we don’t have it. These people are all about socializing losses but privatizing gains. If this was a farmers bank or whatever they would let it go belly up. But God forbid that billionaire VCs lost while gambling.
Friedberg makes me so hopeful for the future. So valuable to have this kind of clear communication to evangelize our most important technological projects 1:17:31
The depositors had to be fully insured, imagine the mayhem if the FED didn’t come out say that every cent in SVB and any bank is insured to the full, it would have completely destroyed the economy and the banking system, if I deposit my money in a bank I know that’s the safest place I can put it, if that trust is gone the financial system collapses
I am with the shareholders and investors losing their money because that comes with inherent risks and rewards that they knew about; but the depositors losing money destroys the whole point of a bank right?
Sounds hypocritical but I think it’s two completely different things. Like telling someone not to start a crypto company but you invest in the crypto space for arbitrage gain. Short term it could be beneficial but long term could be a problem
Thank you for this wonderful video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong?
I strongly advise you against self trading, it's really dangerous and had brought so many investors down, you need someone with the knowledge and strategies, someone dedicated to the crypto currency market business, and I will strongly recommend expert, Mrs Janet
Sacks, I'm not saying depositors should lose their money, I'm saying that govt shouldn't bail out. Apparently your principals don't run that deep after all. Learn from this, make the changes to prevent this in the future.
Privatize the profits and socialize the losses. Capitalism isn't working anymore. These banks and investors take massive risk either with bad investments or uninsured deposits, make massive profits, then expect the government to bail them out when it blows up.
Loved science corner! I could never understand why in past episodes Chamath would say energy and compute could go to zero. Really interesting and exciting!
KEY STATEMENT by David Friedberg "The Central Bank is just going to be ONE BIG BANK" 🚨 Bingo! Easier to run a national CBDC through, no? Consolidate all other banks into the Central Bank. If you see it, you see it.
Yup sacks is not a republican. He is a liberal. He wants to give away regional power and choice and turn us into China. Classic shill. Should have seen David for what he was.
It's obvious now that Friedberg could easily spin out the "Science Corner" section into his own podcast and it would be much better than the "All-In Podcast". I think he is just keeping the band together for his friends, which is admirable in a way. He is the George Harrison of the group.
The first sign that you are "spreading a panic" is that you.... are panicked. Sacks was freaking out, emotionally tweet storming and throwing tantrums over the weekend, issuing threats to the Feds if they didn't step in and bail it out. Not spreading a panic is just stating your opinion, without hysterical emotions, with what you believe will be the outcomes, and what you recommend as corrective actions. The comment that the VC's are the "adults in the room" made me LOL. A person who only cares about their profit and nothing else, is not ever "the adult in the room", rather, they are the person that needs to be put in check by the adult in the room.
Just like Friedburg mentioned, in Argentina we use safe boxes, because we do not want to bear the bank’s counterparty risk. Unfortunately, safe boxes have a cost so effectively, you have to pay money every year if you want to have your savings secured.
portfolio companies were on the line, and his portfolio company Robinhood is robbin the hood. Robinhood Users Cannot Cash Out Their Bets Against SVB. The controversy centers around put options, which allow investors to bet on the decline
You call that courage?! Lmao. All in podcast is trash, these guys are welfare recipients begging for gov handouts while bragging about cashmere sweaters. Pathetic
Having heard every episode of All In so far my god Friedberg and Chamath are at a seriously higher level of sheer depth and breadth of knowledge. Check out 47:11 - 50:26. 50:26 is the moment Sacks realizes he is in deep waters in this conversation and needs to paddle back
Always remember that these are 4 multi millionaires/billionaires who have nothing in common with the rest of us. They are smart and entertaining but these guys will always protect their own class first and foremost.
I was skipping, through the segment today and absolutely locked in when Friedberg started speaking on the sciencer corner of superconductors. The level of disseminating complex topics into absorbable information for the average individual is phenomenal.
The correct acronym is SIFI, not SIB. This balance sheet problem is not exclusive to Banks, rather we should presume every public company balance sheet is holding bonds at an unrealized loss. Municipalities are likely also holding these bonds. The only viable solution is to cut rates immediately.
If company A has 10 million dollars one would think that some thought would go into where they put that money. As mentioned, regional banks do not have the same regulations as the big banks like WF, BOA, etc. The CFO of any of these companies that park 10mil or any amount over $250k should be well versed in the risk management the regional banks and National banks are held to by the Gov’t. Rather than put their money in a bank that has the controls in place to safe guard their money the Tech industry has placed a premium on wine service and fancy cheeses at the regional banks like SVB. As a result, they rave about service at these regional banks and have zero thought about the risk associated with regional banks. I’m just an average Joe who has dreamed of having 10mil dollars to run a business. One of the first thoughts that occur to me when I dream of having that much money, is where to put it so I don’t lose it if the bank goes bankrupt. The era of free money continues for the 1% while the common folk continue to flip the bill for these guys. It is the era of free money that promoted the risky behaviors these companies. It’s time for these risky behaviors to be weeded out by letting them fail…..
Chamath describing crypto is beautiful. "Different way to solve this problem", "100% transparency", "laws written in code", "tactical real time intelligence".
@@somethingginterestingg4275 sacks at around 27m . I don't think it changes much at all though. He was clear that many of the startups in his portfolio were depositors (as was the norm) which is much more important than his mortgage
@@somethingginterestingg4275 at 23:48 J cal mentions this. In the prior pod, he said he had no exposure to SVB at all. That’s why he non- chalantly mentions it here. I think he got called out on Twitter about it originally.
But there are a lot of small businesses/non-profits and the like that could get caught up in these issues and find themselves unable to make payroll. I see it as more of an issue that ends with a bunch of employees that live paycheque to paycheque suddenly having no income.
@@kylem324 Yes but that's where the first $250k available monday comes in; as well as the first dividend payment. Since the fed/fdic is making stuff up as they go, just prioritize non profits(hospitals, etc) to be made whole first with the dividend payments. Everyone is pretending like Johnny's little league is going to stop because they banked with SVB. If you work for a startup, even the single parent who needs to make their mortgage-you work in an inherently risky sector and your employer did not properly manage risk. Your mortgage is late? Congrats. Pay the $90 fee like the rest of America. They aren't taking your home because your mortgage comes in a week or too late.
@@jaredking31 Small business can employ up to 500 employees. When I mention SMB (or just small in this case) I’m explicitly not referring to just tech or startups and talking more globally than just SVB. (Size - Per gov definition) Roughly 50% of the workforce is employed by a small business. If the average salary is $50k p/a, any org with 100+ employees is going to struggle to make payroll instantly, let alone any other overhead. And depending on how their cashflow occurs, a lot of their operating capital might be locked up until dividends can be disbursed. Some non profits run with their capital for the year on deposit. And how many SMB’s operate on a net 30-90 schedule? Many people could find themselves in a hole through no fault of their own. They won’t instantly be thrown out of their housing, but these problems could also persist for longer than a few weeks. So even an org with only dozens of employees could run into problems within weeks. Or even smaller where there’s a lot of capital needed in procuring either materials or goods. My point - there’s lots of places where that $250k doesn’t go very far. And further the liquidating of assets with a haircut to deposits (say 30%) will be greater than the operating margin of most orgs.
Stellar episode, again! 👏🏽👏🏽👏🏽 Lol@ JCAPS! 😂 A legendary Science corner that has me in South Africa thinking about how to get my 6 and 8 yr old boys started on SuperConductors!! Thank you folks, you gentlemen give me hope of progress and a bright future that is possible if we all dig in and invest in our respective crafts! #Salute
They all own bitcoin.. ask yourself why they won't talk about it publicly. They want the masses to remain slaves to the corrupt system for as long as possible.
No one needs to apologize, early signals from the administration and some MSM looked like it was shaping up to be a let the tech bros burn moment. You guys sounded an alarm that letting depositors burn would only lead to contagion. You were right, shouldn't shoot the messengers. WSJ editorial board please haven't been relevant for a long time. The problems are not your podcast or twitter declarations and most intelligent people understand that. Keep doing what you do, we need more public discourse around real issues and less tribal banter.
I can disagree with some of what is shared on this Podcast,, but I LOVE the information, educating your viewers, different points of view, and the dynamics of the discussions. I LOVE IT, and I thank you for what you provide to the novice.
awesome episode :) The science corner at the end was a good finish to lift up spirits after the doom and gloom about the economy. Always heard about magnetic trains but was confused why the idea wasn't fully realized/mainstream yet. Didn't know superconductivity was a thing until now. Thanks guys~
@@WhyHighC How Bitcoin’s exchange rate for fiat currencies fluctuates is different from how the network is designed to function. Bitcoin is still being traded by wall street finance bros who have programmed their bots to treat it as a risk-on asset.
This is correct, and you know people this smart are aware of bitcoin. The fact they don't atleast discuss its potential is very suspicious in my opinion.
@@POH1222 idk if blowing up SVB is actually beneficial for them. Obviously i have no idea what the VC landscape is but it seems like the bank bent over backwards to service a very specific group of investors. It might have been better for VCs to help SVB out of their situation in the long run but again that's just conjecture maybe there are plenty of other options willing to offer the same terms
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Julia David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
Jason, look up Custodia Bank and Caitlin Long. She is a former Wall Street banker who was poised to open a 100% dollar-backed bank (as a Wyoming SPDI) with NO lending and NO interest. The Fed will not allow Custodia to get a Fed Master Account and offer their services widely. There is concern that this kind of bank would suck deposits from traditional banks due to their more secure nature. The rabbit hole goes deep.
The owner of that poor performing mortgage fund you mention is the FED. Noonel else wants that terrible asset. They buy it by printing currency and that is why all roads are now leading to inflation.
I did the 12 week MVP course and it was amazing - true to their word - they do charge you upfront to show you are serious but if you do all the coursework they immediately refund you every penny as soon as it's over. You get great advice and support from founders who are a bit later in their journeys as well and can guide you through certain challenges.
JC and Sacks are the epitome of “denial”….still promoting their VC fares as though nothing happened and everything is just going back to normal. Truly delusional. Chamath and Friedberg are cautious, alarmed and much more congruent with market conditions. Time to split. I will take a Friedberg podcast any day. I think Chamath contribution to this podcast was poignant, cutting and heartfelt. Chapeu!
1:09:23 - conductors (for electricity) 1:10:46 - magnet floats on top of superconductor 1:11:08 - frictionless trains 1:11:23 - new micro processors from superconductors (will use 1% of energy of a semi conductor processor) 1:14:00 - experiments people undertook - to drop it to 0 degrees
Sacks, when you talk about depositors as you do, you neglected to mention FDIC does insure depositors to $250k. And most businesses that deposit more understand cash management so as not to exceed $250k. You can't ignore that is the way the system is supposed to work, and if this limit was respected no one would have cared when SVB went under. There would not have been a panic. The bank may have still been insolvent but there would not have been a run.
I have two accounts for this exact reason. If these guys are the most sophisticated operators in the market, then why did I think to do this and not them? The reality is they knew that was prudent, but this bank gives them kickbacks to tell their founders they have to bank there. This was their mistake, their risk. If you are a depositor exceeding the insured amount you are an investor. They deserved to lose their money. BUT, I agreed that the bailout needed to happen. In light of this, though, my real problem was how Jason and Sacks handled this. They stoked fear of general bank runs without being clear that $250k is insured. They insulted and mocked the government for not doing something they were in the process of doing. And a reasonable person should believe they did this to protect their books and their friends' books by trying to increase the risk of the regulators not bailing them out by stoking lack of faith in both banking and government. And then to top it all off, they now act like tweeting this stuff was to sound the alarm to regulators. Which is so idiotic I don't even need to go into it. Some of the most shameless and embarrassing behavior I have ever seen.
wasn't credit suisse offering chamath 6.5% a couple episodes ago (E:118)? lol, now we know why....on another note though, Chamath nailed it in E118 @the 44:00min mark where he talks about the quality of earnings. Cashflow vs balance sheet accounting to present more profit (aka, the bond crisis we're seeing)
I would to hear you guys talk about the future of banking and fintech. Personal and commercial applications. We are experiencing the biggest disruption and opportunity in this space!
![[LIVE] BABYMONSTER(베이비몬스터) - DRIP | 두시탈출 컬투쇼](http://i.ytimg.com/vi/UG05pxLGwzc/mqdefault.jpg)
![Everything You [PROBABLY] Don't Know About Negotiation | Chris Voss](/img/n.gif)
Frieberg is a treasure of the pod. He has a holistic view, not oversimplify things, pretending he knows the answer which shows he is the wisest one. Always eager to listen to him
he's just way too pro elite, nothing to see here, global order is fine as is
He's acting as if everything would have been perfect if not for the lockdowns
Delusional
That’s why we need stand-alone podcast with him.
💯
IMO the only bestie who doesn't let his ego or insecurities stand in the way
This was his best one imo. I appreciate how we always zooms out to look at pretty much every topic from a kind of ’first principles’ perspective. Economically and socially.
Friedberg in his zone is something to behold.
Sychophant
I would love to have one solid hour of Friedberg just talk about science. He simplifies incredibly complex topics with ease and shows the relevance to our daily lives. Probably my favourite person from this podcast.
🙏🙏
His passion makes me smile 😊
the crew loves to tease Friedberg, yet he just chills and delivers wisdoms. Humble af
Nobody on this podcast is humble.
I do kinda perk up whenever Friedberg jumps in because I can't predict or don"t always know what angle he comes at any particular topic.
Even when I can tell what his bias might be overall, it doesn't always determine his take on a topic.
Friedberg needs a science podcast ASAP
Sychophant alert
I’m a fan. But as a career banker, this was difficult to listen to. 1. A bank that offers ‘vault service’ for holding cash isn’t a bank. Banks are required to serve the community in which they operate via taking deposits and making loans. 2. A money market fund doesn’t make ‘loans’. A real MMF simply buy t-bills and short term depos. Anything else is not an MMF. 3. SVB failed due to poorly managed concentration risk. Their balance sheet primarily consisted of assets AND liabilities of speculative tech startups and small businesses. The liquidity shortage was a function of this risk.
Surprise that the ego squad who talks about which country they visited each week like any normal people give af are a bunch of elitist azzhols. Woah. Crazy.
Well said . All in folks had to save their ass.
why did the other 4 banks fail?
@@BootsieTheGreek he could easily know know more than them, theyre just VCs in tech
@@BootsieTheGreek was thinking the same thing
Alright everybody welcome to the bailed out podcast.
The shock on Jcal's face when Chamath nonchalantly said 'dumb tangent 😂 Also, Friedberg deserves better companions during his science corner than these three! Time for a spinoff science corner podcast!
Reach out to "Stuff you should know"
These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this only the beginning!
People fail to understand the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend and im comfortable with it!
@@ambertraceyy Over the years, I have learnt not to trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time. Still a millionaire.
@@Andersonstew My advisor is ‘’HEATHER LEE LARIONI’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
@@josephbush Oh great recommendation! I happen to know Heather too. She is also my adviser. totally recommend her.
Congratulations on the bailout guys
No chill,eh!
The bestie bailouts. Good for you guys. All these bank issues had me worried about the struggling billionaires out there. Glad the working class can step in to save you. 🙏🏻
@@aaayyy1953 Well, paid for by the tax payers. Because billionaires forget/ignore that there is something called fractional reserve banking and didn’t bother to do their due diligence because who cares when you always get a bailout. This is why capitalism doesn’t work, because we don’t have it. These people are all about socializing losses but privatizing gains. If this was a farmers bank or whatever they would let it go belly up. But God forbid that billionaire VCs lost while gambling.
Change the podcast name to Welfare Queens now 😅
Science corner is the best part of this
Friedberg makes me so hopeful for the future. So valuable to have this kind of clear communication to evangelize our most important technological projects 1:17:31
1:24:30 and Sack’s reaction to Freidberg’s motivating speech gives me hope for comedy 😂
Wild that Jason prevented a massive banking crisis by using caps lock.
@@patrickmccarthy5617 that's not a haircut that's getting wiped out
The depositors had to be fully insured, imagine the mayhem if the FED didn’t come out say that every cent in SVB and any bank is insured to the full, it would have completely destroyed the economy and the banking system, if I deposit my money in a bank I know that’s the safest place I can put it, if that trust is gone the financial system collapses
I am with the shareholders and investors losing their money because that comes with inherent risks and rewards that they knew about; but the depositors losing money destroys the whole point of a bank right?
You mean wild that they promoted a general bank run so their money would be subsidized? Yeah, wild!
You mean by whining like a crybaby?
The fact that Jcal felt the need to say “this isn’t an apology” over 10 times is revealing imo
What is it revealing? Genuine question.
Shout out Yellen’s Milk for feeding these babies
Yeah it’s hard to listen to them the same. Crying for socialism when they lose. Whatever.
Privatize gains, socialize losses. Rinse. Repeat.
😅😅😂😂
Sachs "I always told everyone to not go with SVB"
Also Sachs: Had money in svb.
These guys are just a bunch of crooks
Sounds hypocritical but I think it’s two completely different things. Like telling someone not to start a crypto company but you invest in the crypto space for arbitrage gain. Short term it could be beneficial but long term could be a problem
What is the time of that quote?
@@pointbite it was last pod. Not sure the time
@@kawikanewton9229 So there is a good chance you misquoted him?
Great job guys. All that crying in the media finally paid off. Bailout rewarded!
how many weeks before we are back to loving the "free market"?
Thank you for this wonderful video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong?
Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong
Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade
I strongly advise you against self trading, it's really dangerous and had brought so many investors down, you need someone with the knowledge and strategies, someone dedicated to the crypto currency market business, and I will strongly recommend expert, Mrs Janet
Wow I'm just shock you mentioned and recommended Expert Mrs Janet,I thought I'm the only trading with her
YOU DON'T NEED TO BE SHOCK BECAUSE I'M ALSO A HUGE BENEFICIARY OF expert MRS JANET
I’m only here for science corner. It’s always either fascinating or sleep inducing. Love the anticipation.
Friedberg is the only person on this podcast that is not a liar.
@@AnonymousQwerty Jcal is the worst part of the pod, and that's even with scamath
Chamath at minute 25mins is showing a very high level understanding of how the fed influences the economy/asset prices. Super helpful!
JCAL: "Frankly I didn't think we'd make it past 50 episodes"
Chamath: 3:12 "Well that's because you tried to ruin the pod."
[Friedberg on the floor] 😂
almost stopped wathcing this bc ic Chamath but I just ignore him
@@Mag-us6iz Whats wrong with Chamath?
@@joyalbabu1398 arrogance, pride, gluttony
All in pod jumped the shark when they begged to get bailed out
Sacks, I'm not saying depositors should lose their money, I'm saying that govt shouldn't bail out. Apparently your principals don't run that deep after all. Learn from this, make the changes to prevent this in the future.
Privatize the profits and socialize the losses. Capitalism isn't working anymore. These banks and investors take massive risk either with bad investments or uninsured deposits, make massive profits, then expect the government to bail them out when it blows up.
Fascinating science corner, keep them coming!
Loved science corner! I could never understand why in past episodes Chamath would say energy and compute could go to zero. Really interesting and exciting!
Science corner was so good, wish the whole group would show more interest in discussing those topics
"Gimme a bank vault. Why does that service not exist in the world?"
This is LITERALLY THE REASON Bitcoin was invented.
its absurd how they are realizing from first principles why bitcoin was invented
They want a bank vault to avoid all risk. I love bitcoin but it's not exactly a risk free asset lol
KEY STATEMENT by David Friedberg "The Central Bank is just going to be ONE BIG BANK" 🚨 Bingo! Easier to run a national CBDC through, no? Consolidate all other banks into the Central Bank. If you see it, you see it.
Yup sacks is not a republican. He is a liberal. He wants to give away regional power and choice and turn us into China. Classic shill. Should have seen David for what he was.
It kinda looks like that’s the plan - CBDC
Why?
@@CamLizenby Why CBDC, or why does it look like we're heading in that direction?
But they're struggling to create a narrative for doing it
It's obvious now that Friedberg could easily spin out the "Science Corner" section into his own podcast and it would be much better than the "All-In Podcast". I think he is just keeping the band together for his friends, which is admirable in a way. He is the George Harrison of the group.
Mr. Friedberg surprised me with his knowledge and interest in superconductors and quantum computers, good choice.
I don’t see venture firms distributing profits to the government when they’re doing really well.
The first sign that you are "spreading a panic" is that you.... are panicked. Sacks was freaking out, emotionally tweet storming and throwing tantrums over the weekend, issuing threats to the Feds if they didn't step in and bail it out. Not spreading a panic is just stating your opinion, without hysterical emotions, with what you believe will be the outcomes, and what you recommend as corrective actions. The comment that the VC's are the "adults in the room" made me LOL. A person who only cares about their profit and nothing else, is not ever "the adult in the room", rather, they are the person that needs to be put in check by the adult in the room.
Just like Friedburg mentioned, in Argentina we use safe boxes, because we do not want to bear the bank’s counterparty risk. Unfortunately, safe boxes have a cost so effectively, you have to pay money every year if you want to have your savings secured.
Science corner should be 1/4 of the pod. Cool stuff.
Agreed! Or a spin off 😂
JCal: "no financial interest in the bank"
... Except for your mortgage and probably a bunch of money tied up
If he has a mortgage with them, the bank has a financial interest in JCal, not the other way around.
portfolio companies were on the line, and his portfolio company Robinhood is robbin the hood. Robinhood Users Cannot Cash Out Their Bets Against SVB. The controversy centers around put options, which allow investors to bet on the decline
Happy to see that the Science Corner is back. Very interesting topic on Superconductors. Love how Friedberg explained it.
Chamath showing leadership by having the courage to outline some possible VC misbehavior at SVB…👍🏽
You call that courage?! Lmao. All in podcast is trash, these guys are welfare recipients begging for gov handouts while bragging about cashmere sweaters. Pathetic
Having heard every episode of All In so far my god Friedberg and Chamath are at a seriously higher level of sheer depth and breadth of knowledge. Check out 47:11 - 50:26. 50:26 is the moment Sacks realizes he is in deep waters in this conversation and needs to paddle back
Friedberg and Chamath are definitely the most knowledgable and Friedberg is probably the wisest of the 4
Friedberg is so humble and to the point
18:28
Thank you for not cutting David off and letting him finish! Appreciated.
Always remember that these are 4 multi millionaires/billionaires who have nothing in common with the rest of us. They are smart and entertaining but these guys will always protect their own class first and foremost.
And that is common with rest of us :)
I was skipping, through the segment today and absolutely locked in when Friedberg started speaking on the sciencer corner of superconductors. The level of disseminating complex topics into absorbable information for the average individual is phenomenal.
Great science corner Friedberg! Best part of the episode. Wish jcal and all showed you more love. 1:23:42
Sacks makes the moat sense in this podcast!PERIOD!!!!People want the trustworthy banks!!!
The correct acronym is SIFI, not SIB. This balance sheet problem is not exclusive to Banks, rather we should presume every public company balance sheet is holding bonds at an unrealized loss. Municipalities are likely also holding these bonds.
The only viable solution is to cut rates immediately.
Can’t wait for the besties to distribute their gains to the Fed! So generous! 😍
Exactly! 😂
Thanks friedberg for the science talk! Really appritiate those in depth topics!
Friedberg’s laugh in the background is everything 😂😂😂
If company A has 10 million dollars one would think that some thought would go into where they put that money. As mentioned, regional banks do not have the same regulations as the big banks like WF, BOA, etc. The CFO of any of these companies that park 10mil or any amount over $250k should be well versed in the risk management the regional banks and National banks are held to by the Gov’t. Rather than put their money in a bank that has the controls in place to safe guard their money the Tech industry has placed a premium on wine service and fancy cheeses at the regional banks like SVB. As a result, they rave about service at these regional banks and have zero thought about the risk associated with regional banks.
I’m just an average Joe who has dreamed of having 10mil dollars to run a business. One of the first thoughts that occur to me when I dream of having that much money, is where to put it so I don’t lose it if the bank goes bankrupt.
The era of free money continues for the 1% while the common folk continue to flip the bill for these guys. It is the era of free money that promoted the risky behaviors these companies. It’s time for these risky behaviors to be weeded out by letting them fail…..
The bailout boys. Good work besty
Chamath describing crypto is beautiful. "Different way to solve this problem", "100% transparency", "laws written in code", "tactical real time intelligence".
“I have a mortgage on the office with SVB” you notice how he snuck that in there. He didn’t mention that last episode.
@@somethingginterestingg4275 sacks at around 27m . I don't think it changes much at all though. He was clear that many of the startups in his portfolio were depositors (as was the norm) which is much more important than his mortgage
@@somethingginterestingg4275 at 23:48 J cal mentions this. In the prior pod, he said he had no exposure to SVB at all. That’s why he non- chalantly mentions it here. I think he got called out on Twitter about it originally.
I agree with David Sacks on all of those compounding decisions - great explanation.
You guys forget that the average person doesn't have more than 250k at the bank, and thus does not take on any risk.
But there are a lot of small businesses/non-profits and the like that could get caught up in these issues and find themselves unable to make payroll. I see it as more of an issue that ends with a bunch of employees that live paycheque to paycheque suddenly having no income.
@@kylem324 Yes but that's where the first $250k available monday comes in; as well as the first dividend payment. Since the fed/fdic is making stuff up as they go, just prioritize non profits(hospitals, etc) to be made whole first with the dividend payments. Everyone is pretending like Johnny's little league is going to stop because they banked with SVB. If you work for a startup, even the single parent who needs to make their mortgage-you work in an inherently risky sector and your employer did not properly manage risk. Your mortgage is late? Congrats. Pay the $90 fee like the rest of America. They aren't taking your home because your mortgage comes in a week or too late.
@@jaredking31 Small business can employ up to 500 employees. When I mention SMB (or just small in this case) I’m explicitly not referring to just tech or startups and talking more globally than just SVB. (Size - Per gov definition)
Roughly 50% of the workforce is employed by a small business. If the average salary is $50k p/a, any org with 100+ employees is going to struggle to make payroll instantly, let alone any other overhead. And depending on how their cashflow occurs, a lot of their operating capital might be locked up until dividends can be disbursed. Some non profits run with their capital for the year on deposit. And how many SMB’s operate on a net 30-90 schedule? Many people could find themselves in a hole through no fault of their own. They won’t instantly be thrown out of their housing, but these problems could also persist for longer than a few weeks.
So even an org with only dozens of employees could run into problems within weeks. Or even smaller where there’s a lot of capital needed in procuring either materials or goods.
My point - there’s lots of places where that $250k doesn’t go very far. And further the liquidating of assets with a haircut to deposits (say 30%) will be greater than the operating margin of most orgs.
But the company hiring that persons have. So here’s the risk for that person.
@@kylem324 that is what's supposed to happen in a recession.
Stellar episode, again! 👏🏽👏🏽👏🏽
Lol@ JCAPS! 😂
A legendary Science corner that has me in South Africa thinking about how to get my 6 and 8 yr old boys started on SuperConductors!!
Thank you folks, you gentlemen give me hope of progress and a bright future that is possible if we all dig in and invest in our respective crafts! #Salute
Let's blame the regulators WITHOUT mentioning the fact that we have been blaming regulators for over-regulation. 😂😅
Both over regulation on nonsensical insignificant areas AND lack of regulation on actually risky practices can be true at the same time. Just sayin'.
1:25:00
Thank you Sacks for using a good audio system.
Guys, please use top audio settings. Be nice. Thanks.
BITCOIN, THE ANSWER YOU'RE LOOKING FOR IS BITCOIN! 🤦
Fax Bitcoin for life baby
self-custody ftw 💪
They all own bitcoin.. ask yourself why they won't talk about it publicly. They want the masses to remain slaves to the corrupt system for as long as possible.
Frieberg's physics explanations just blows my mind.
Friedberg is next level!
No one needs to apologize, early signals from the administration and some MSM looked like it was shaping up to be a let the tech bros burn moment. You guys sounded an alarm that letting depositors burn would only lead to contagion. You were right, shouldn't shoot the messengers. WSJ editorial board please haven't been relevant for a long time. The problems are not your podcast or twitter declarations and most intelligent people understand that. Keep doing what you do, we need more public discourse around real issues and less tribal banter.
KEEP SCIENCE CORNER!
Love the superconductor speech. Can't wait for quantum, RTS, and nuclear.
They got bailed out, look how happy they can be
I can disagree with some of what is shared on this Podcast,, but I LOVE the information, educating your viewers, different points of view, and the dynamics of the discussions. I LOVE IT, and I thank you for what you provide to the novice.
awesome episode :) The science corner at the end was a good finish to lift up spirits after the doom and gloom about the economy. Always heard about magnetic trains but was confused why the idea wasn't fully realized/mainstream yet. Didn't know superconductivity was a thing until now. Thanks guys~
BAILOUT BOYS ARE BACK!
They basically spent an hour describing that they need Bitcoin.
self-custody ftw 💪
But they can't pump & dump it on others like they used to do with their shitcoins
@@WhyHighC How Bitcoin’s exchange rate for fiat currencies fluctuates is different from how the network is designed to function. Bitcoin is still being traded by wall street finance bros who have programmed their bots to treat it as a risk-on asset.
@@WhyHighC Which is it now? You said it didn't shoot up, but in the next sentence you write its up. Its literally up by 30% compared to a week ago.
This is correct, and you know people this smart are aware of bitcoin. The fact they don't atleast discuss its potential is very suspicious in my opinion.
Productivity increases are not the right way to solve the problem. If it is right way, we won’t have these problems at all
SVB def had long term issues but the funniest part is where VCs blew up their own bank for no reason
@@POH1222 idk if blowing up SVB is actually beneficial for them. Obviously i have no idea what the VC landscape is but it seems like the bank bent over backwards to service a very specific group of investors. It might have been better for VCs to help SVB out of their situation in the long run but again that's just conjecture maybe there are plenty of other options willing to offer the same terms
People who were trying to understand bitcoin but couldn't quite grasp it before - just got a small dose of it's appeal.
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Julia David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
I'm surprised you know her too, I've been making a lot of profit investing with her for a few month now.
You invest with Julia too? Wow that woman has been a blessing to me and my family.
Julia changed my life because of the high profits I got from investing with her.
Please how can i get intouch with her, i'm new at this
YAY! Science corner. Fav part of the pod. 👍
I want the besties to all play CIV or AOE for an episode, I think it would be cool seeing how each one of their civilizations grow
This would have been amazing
Friedberg would steamroll them all!
Great idea!
Or Rust
They would need the FED cheat code to give them unlimited gold or you would be watching them reload saved games when they make a mistake
Jason, look up Custodia Bank and Caitlin Long. She is a former Wall Street banker who was poised to open a 100% dollar-backed bank (as a Wyoming SPDI) with NO lending and NO interest. The Fed will not allow Custodia to get a Fed Master Account and offer their services widely. There is concern that this kind of bank would suck deposits from traditional banks due to their more secure nature. The rabbit hole goes deep.
Very compelling science corner well done Friedberg 👏
The owner of that poor performing mortgage fund you mention is the FED. Noonel else wants that terrible asset. They buy it by printing currency and that is why all roads are now leading to inflation.
This is the most bitcoin episode I’ve ever seen
Had to scroll way too far to find this. They're essentially describing Bitcoin.
I did the 12 week MVP course and it was amazing - true to their word - they do charge you upfront to show you are serious but if you do all the coursework they immediately refund you every penny as soon as it's over.
You get great advice and support from founders who are a bit later in their journeys as well and can guide you through certain challenges.
So do we need to make banking nonprofit? That way they aren’t inclined to use deposits, potentially in risky ways, to make money.
Credit Unions are cool
I mean if this doesn't show a use case for decentralized systems like crypto and bitcoin, btc has ripped almost 50% in the last few days
What minute is the part where Sacks congratulates the government for their rapid intervention?
I love Science Corner and how detailed his level knowledge is
Enjoyed the science corner!
Go Friedberg! Thanks for talking more.
Loved and needed the science break! Friedberg 👍🏻
Wow! This is by far the best discussion I've heard on the crisis and ideas for the future
JC and Sacks are the epitome of “denial”….still promoting their VC fares as though nothing happened and everything is just going back to normal. Truly delusional. Chamath and Friedberg are cautious, alarmed and much more congruent with market conditions. Time to split. I will take a Friedberg podcast any day. I think Chamath contribution to this podcast was poignant, cutting and heartfelt. Chapeu!
Does David have his own podcast?
The piece about superconductors 👍👍👌👌
Mr Sach's just got enlightenment! Americans don't like the rules of the game being changed after the fact!
1:09:23 - conductors (for electricity)
1:10:46 - magnet floats on top of superconductor
1:11:08 - frictionless trains
1:11:23 - new micro processors from superconductors (will use 1% of energy of a semi conductor processor)
1:14:00 - experiments people undertook - to drop it to 0 degrees
I enjoy the science segments!
these guys love congratulating themselves
Sacks, when you talk about depositors as you do, you neglected to mention FDIC does insure depositors to $250k. And most businesses that deposit more understand cash management so as not to exceed $250k. You can't ignore that is the way the system is supposed to work, and if this limit was respected no one would have cared when SVB went under. There would not have been a panic. The bank may have still been insolvent but there would not have been a run.
Correct
I have two accounts for this exact reason. If these guys are the most sophisticated operators in the market, then why did I think to do this and not them? The reality is they knew that was prudent, but this bank gives them kickbacks to tell their founders they have to bank there.
This was their mistake, their risk. If you are a depositor exceeding the insured amount you are an investor. They deserved to lose their money. BUT, I agreed that the bailout needed to happen.
In light of this, though, my real problem was how Jason and Sacks handled this. They stoked fear of general bank runs without being clear that $250k is insured. They insulted and mocked the government for not doing something they were in the process of doing. And a reasonable person should believe they did this to protect their books and their friends' books by trying to increase the risk of the regulators not bailing them out by stoking lack of faith in both banking and government.
And then to top it all off, they now act like tweeting this stuff was to sound the alarm to regulators. Which is so idiotic I don't even need to go into it. Some of the most shameless and embarrassing behavior I have ever seen.
wasn't credit suisse offering chamath 6.5% a couple episodes ago (E:118)? lol, now we know why....on another note though, Chamath nailed it in E118 @the 44:00min mark where he talks about the quality of earnings. Cashflow vs balance sheet accounting to present more profit (aka, the bond crisis we're seeing)
You guys need to bring in Caitlin Long from Custodia Bank as a guest re: the banking model with full reserves.
I would to hear you guys talk about the future of banking and fintech. Personal and commercial applications. We are experiencing the biggest disruption and opportunity in this space!