Michael Douglas, David Exe Lee, Tom Hanks discussed on The Cracked Podcast
And I was like, what? That's baffling. It's just like he's his job was to play a game. It's almost like the scene in arrested development were Tobias is going around being like, heard about that Fugate like it's literally that, but on a national scale. So weird and the internet sort of grooved his approach to it. There's also another person here. His name's Navinder sing surrou- and he's from another article called six random. Nobody's who secretly run the world. He was one person. He was living in his parents house in London, and he was in his early thirties, but he used the internet to spoof trading contracts. He would make it seem as if a train was going to happen, and then it didn't. And he apparently made fifty million dollars doing that. Did he go to jail? I don't exactly know. It's very hard to tell if he went to jail or not, because also financial news is hard to read a very difficult to track. He was taken in by Tom Hanks from catch me if you can assure. Yeah, that's right. Yeah, how but he hasn't. I mean, it's all fake, but he only got caught because one move he did in two thousand ten crashed the Dow Jones by six hundred points. So it didn't crash crash it, but it went down quite a bit and then they were like what's going on? And it was because this one guy did a bunch of fake trades to such an extent. And there's a Bloomberg article about how he also lost the whole fortune just separately through stuff. He invested in and other people scammed him, and it's it's weird to me that I think I was raised thinking that a lot of different people and companies and actual work is what runs the stock market. And in many cases, it's just like bold individuals, random people just deciding I'm the person who gets to wear that shirt into the stock thing. That's there's no qualification. Zero, my ex studied engineering and then you're like, you wanna come be a traitor in. He was like, I know how to build bridges. Could I do this instead? And they were like, yeah, whatever you seem like you look good in that shirt come on over. I didn't even think about it. I am wearing a contrast collar shirt right now, and I didn't think about it in terms of like, I'm coming to talk about the stock market. It's very different from the Michael Douglas shirt. I don't mean to okay, make people listening at home think you're wearing that exact, but I would love for them to think that and suspenders have gray hair just picture Michael Douglas. That's who I am. One of those enormous beige phones with antennas. That's what I'm talking into right now by so by. So they just hang up. I've moved antenna down. Speaking of commodities too, because one thing that I think is maybe not necessarily public knowledge is that there's also a stock market currency market, a commodity market. There's all sorts of different spaces that these things get traded and and with commodities, there was a guy named Steve Perkins and he's in, I wanna cite these people's great crack writing at six people who single-handedly screwed entire Connie's. It's by Robert Evans, Sam Cooper and St. Perkins was an oil trader. So he was trained the commodity of oil, which as many of us now is very valuable and in twenty ten, he went out drinking all weekend. Like the company did a paid trip for them to go drink and party. And then he decided to just keep drinking Monday and Tuesday. When he got back to work, he'll just keep it going because he's a role. And then he ended up buying five hundred twenty million dollars in oil over a one thousand nine period where apparently he was just kind of blacked out and it was up to sixty nine. Percent of the total world trading and oil because apparently and has line of work. You only are supposed to purchase stuff when people ask you to pay for it in, and he just kind of went ahead and did it. And I guess there's no rules or systems or anything. Jerry what year was this? It was twenty ten God. So what happened? They just kind of tried to switch it all back as far as I can. Oh, no. Did he go to jail? There's no Jason. Stake in the economy went to jail, no jails, full of people of color who had one gram of wheat. The end. I think also there is, I mean, a party culture societas with Wall Street to like a masculine sort of like, yeah, party hang out Lee, you know, be be at the office all hours like, I'm sure these people are not healthy is seems like, yeah, yeah. And then they're like bleary eyed and tired and like and like coming down from cocaine and they're like, I don't know what's the world economy that sure. That's who we want in charge. Yes, those guys, I'm thinking of pop culture again, like wolf of Wall Street. Matthew mcconaughey is advising Leonardo Caprio on the uppers downers and masturbation. He used three day right need to do these things to my body to make my brain function to move the entire world economy of job. Okay. Yes. So they can just say, could just switch it back. I for one thing don't know a lot about the economy but researchers best it can, but also I feel like journalism struggles to cover this stuff because I think the the articles we've put together and then also what they're drawing on tends to cover like the mistake or event of it, you know. And I don't know if there's that much follow up on what happens to these people like maybe all of them went to jail. I don't really know. Yeah. Yeah, I wasn't even sure like the Martha Stewart thing, the insider trading. Yeah, I wasn't even. I was like, whoa, what. I guess it's like they are not allowed to give information. I don't. I think if you ask five people on the street, they would have no idea what insider trading is. Yeah, I think they would only know the vibe of it. They would be like, I dunno, she did something shady. Exactly. That's, that's. That's a the vibe is very clear, but that's it. They like snuck some info. Okay. Why? Why is that bad? If you can write in and tell me why insider trading as bad at WWW dot? Why is it bad dot com? Oh, that should be my new podcast is bad, and then I come on until things are bad. Just very as activities that idea. Yeah, I just have people on it. I'm like, hey, so like this idea, why is it bad? Please communism? Yeah, I don't know what's wrong, right, and I don't necessarily think they're good. Oh, sure. I just need to know what my argument is. When I say it's bad. Heart of the job description for handling this stuff. As far as I can tell is you're allowed to mess up some of the time or if mistakes happen. It's an element of how it works because there's also a guy in that same article as Ames, David exe Lee and he was a, he's a mathematician, but also works in the markets. And he came up with a something called the Gosse an Coppula function. Okay. And this was a very complex formula that let people try to predict how debt would work and then sort of place bets on that debt called collateralized debt obligations and long story short. It was a formula that worked absolutely perfectly for letting people make money almost automatically for about five years because they would just bet on whether debts get paid back or not. And someone would always worked all sorts of different kinds. And then eventually these people started using it to bet on housing market debt, and then housing market. What caused the entire great recession that we have lived short? Exactly. I know there's a lot of factors going into something like that. One of them is that this one guy thought of one formula that was so successful at one point, people were saying this guy should win a Nobel prize because he's making so many people wealthy at it, raises them out of poverty or something like that. Okay. And then it suddenly didn't work in the whole economy crash, and it can happen that way because one guy does something that's peeling to a few other people, and I, it's amazing to me that the economy can be in the hands of just a couple of people. It seems crazy. Yes. And also that it's in the hands of like we just trust these dudes. Yeah, we're like, I don't know what is he a guy seems legit like what so so. Okay. So people were betting that this, that this would get paid back? Yeah, a move. It was investors. They could take a set of debts and bundle them into one thing that you can invest in. And this became its own Marquette, and it grew from initially being something that nine hundred twenty billion dollars we're in, which is a lot to sixty two trillion dollars. Oh, which is I think just more money than I've ever seen written down in any way. And so then it was big and then it fell out. Here's the thing is that when people say, oh, we can't do total student loan forgiveness. Where would the money come from? We can't fix Flint's water crisis. Where would the money come from? Do you know where it would come from this shit? Who is holding onto this fence budget is so big. Like two people have all the money in our whole country, and then we go auto know where the money would come from. Okay. I have some ideas. And twenty trillion or whatever. You said a sixty. Two trillion sixty two trillion. One trillion could cover student loan. Do you know any. You know what? I don't understand. What do you even need all that money for to just make more money that was their whole goal. I feel like people on both sides of we don't have the money for that or why don't we have the money for that either way where all just sort of guessing what all the numbers are. Yeah. And the people who say there is enough money to fix it are correct because there is enough if you just look at it at a Broadway, it's billions versus trillions, but we just are like so individualized that we're like, well, that guy who made sixty trillion. He probably did something better than than us. Am I soc socialize? Probably. I'm just like, why does this guy need all of that? I don't know if people understand that all of that is an expression of priorities, like it's all we could prioritize taking care of all those things. Like is it? Is it something where we feel like the way we're prioritizing things now makes the whole thing run and we don't wanna break. It almost feel like people are like that individual imperative and will, and cowboy element is what makes the economy go. So if we blow that up, we'll lose everything. There's this mythology especially around the stock market of like we learned it well or like that. This person did something special, but I don't think they did and it's like, and then we're kept out of it because we're told that even you saying like, I don't understand the writing on it. That's on purpose. That's to keep like certain people like a barrier to entry all financial stuff, financial writing, all like money, blogs, all all of it is is sort of tick. A has like a barrier of entry to keep certain people out because they write in jargon and they don't need to write in that jargon. They just do it in order to like make things more complicated so that like they can keep certain people out out of the out of investing out of the stock market and like intimidate people away from like up, money's hard. I just don't know. I was not even start to learn, then that's why there's no economic mobility. So I think a lot of people have had that feeling. I know I've had it. Yeah, it's, it's really a scary. Yeah, of course. And I, it's, I've made all of this stuff. My fulltime job in, like I said, I still don't know anything. Nothing.