17 Burst results for "Greg Fos"

"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

02:16 min | Last week

"greg foss" Discussed on What Bitcoin Did

"When the prices at five thousand or one thousand and they paid fifty thousand was also do that best times. You've never guys always want to bet with me. i'm big. I got if i bet every bitcoin guy that wants a bet with me peter i can i ask a question greg. Let me feel sorta great. I'm i'm gonna try. I'm wanna i wanna try and thought it because i think actually I think if there's a chance at peter schiff can be convinced or understand. Some of it actually is actually a really good thing. Now when you said yes these people have benefited from the special speculation on the price and they have been able to use this former money in that scenario all we therefore not proving the use case. That decentralization is the indian. Peter picked bev. Everything i i think i want before you just try answer without thinking three. Let's just thinking through what we've talked about the fact that these people have benefited from this price appreciation so they've benefited from a market for this price existing so and they've also benefited from the technology. We have we not proven that the world does benefit from a decentralized woman money that is pernicious that is sensitive resistant. isn't that the innovation where the innovation was. Gold is you can make jewelry. The innovation with bitcoin is. You've created the money that governments control that can actually help people in scenarios so therefore the reason need to hold and there is a use case for holding it. Well first of all. I think governments can have a lot more control over it. Then you think if they put their minds to it. I mean they can outlawed they can. They can do a lot of things that would make very difficult for law abiding people to have anything to do with with bitcoin or any other cryptocurrency. So it's not like it's beyond the reach of government and in fact it's far more likely that the government in the united states or other governments would ban gold bitcoin then they would goal because it's very difficult to ban gold. I mean even when fdr made it illegal for americans to own gold. It wh- where that was true. But americans couldn't own monetary gold. They can have a gold watch. They have a gold ring. In fact i remember when i grew up. Our silverware was made of gold. Is that people were making silverado..

peter schiff bev greg peter bitcoin Peter fdr united states government
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

04:56 min | 2 months ago

"greg foss" Discussed on What Bitcoin Did

"The network has grown. The talent in the network has grown. The protocol is more robust than layer. Two is real life layer three is coming. Bitcoin could be. It could be the layer three on. Bitcoin could absorb all the successful defy apps. That are currently living on other. Rab on other blockchain's okay. It's just unbelievable what this could cause in growth doesn't matter the base layer right now is better value then when i got involved six years ago and the price was one under one thousand. Us dollars per coin. I am more excited about the return profile of bitcoin today then when it was under a thousand dollars are going very simply because it is the network effect. The value of bitcoin is the network and that network is growing with use cases growing every day. And if you want an entr an intuitive value. Bitcoin is default insurance on every single idiot. Feet nation. Out there okay which is pretty good insurance to own. Because they've proven over time that they are a bunch of buffoons. And if you wanna keep your money managed by buffoons go ahead then who is the buffoon. Maybe it's peter who keeps lending his money dave. You never pays them back. Listen if you went over there with david. linda money's. He's good valley. I then i would within. I wouldn't lend the money. I would just give it to him. I'd say dave here's some money and maybe that's what the governments are doing now. Hey fos here's some money. And i'm like i don't want your money because every time you give it to me you'll fuck it up. I'm giving dave stimulus checks on i. You may may well be fucking dave. Listen dave what i love can actually called dave and we're gonna give name museum. Why is she doesn't because he doesn't get bitcoin. All right. listen this has been awesome. I tell you how close this out. It goes out quite differently. It's been great. show great. Have your manual smarter share. I'd love to have you back on the show again in the future but dylan i'm massive massively fascinated by the fact that you quit college..

Bitcoin dave Rab linda money peter Us david dylan
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

02:56 min | 2 months ago

"greg foss" Discussed on What Bitcoin Did

"The fed's gonna cut rates and then cub boom so all. The smart people are basically doing the same with bitcoin at the moment again. We're gonna don't no. They're not no. They're not greg greg. We're the smart people. I'm saying the smart people. Okay how about this. But the smart people that understand credit default swap markets are still stuck in their little Okay i better figure out how this works. But they haven't done the work on bitcoin. That's what i'm saying. Nobody has studied it. Greg no those fucking it is. I'm on saying all the people who understand bitcoin right. This is what we did. This is the moment at the end of the big show where they're trying to sell. They'll say i'll take thirty cents on the dollar off. Whatever we're doing the same. I'll just take the bitcoin. I can get a like. I'll get rid of my pounds. Give you that bitcoin. Because we don't there might be one be kind of black monday. There might be multiple black mondays. There might be a a series of events directly events events but either way over the next however many years. we're going to see some form of debt. Jubilee is inevitable. The great reset yeah. I mean like that movie's pretty awesome. Like with when michael berry sitting there. And he's he's writing down he's on he's on his whiteboard and he just keeps marching down more and more losses like i mean that's kind of what being big holder feels like over the short term rates like i'm right i know him right but the market telling me i'm wrong but at the moment like the entire like mortgage backed securities all that junk in the big short. That's like the entire fiat system. And the credit default swap is like bitcoin. Hallelujah hallelujah and here's the thing that was a movie guys. Sit in the chair okay. Your speaker is tight as a fucking not okay. You can't even breathe. You're sitting there. You're sweating you're like fucking my life is over everything. I have invested in the system in this business. I'm trying to to to to create. And i have good track record but the world is blowing up and you cannot even breathe and i promise you that doesn't come out in a movie. You need to sit in the chair. You need to manage risks. You need to sweat your fucking ass off because you think the world is going to end. Well this is the point. I keep trying to make like obviously over the last year especially last six months of other people come to me and this ended. Tell me about this bitcoin thing. Why should i be buying and in the last three months. It's a tougher conversation because people saying yeah but like you went up to sixty four now. It's down to thirty two thousand. I'm saying listen. You buy bitcoin for when you need it. You're buying it for that point with this stuff. But the shit hits the fan his the prices drop to thirty two grand. That's a bonus you can still buy cheap because you're not meant to be selling your bitcoin. Now you might be sending in five years or ten years well when when you need it so every time you see a price drop. That's a bonus like coin sharing. You hold value iguanas like house insurance and the house is on fire and the agency called you up like. Hey you're premium just got cut by fifty percent and you're looking at.

greg greg michael berry fed Greg
"greg foss" Discussed on We Study Billionaires - The Investors Podcast

We Study Billionaires - The Investors Podcast

07:23 min | 5 months ago

"greg foss" Discussed on We Study Billionaires - The Investors Podcast

"Do you see a world where you could actually do. Negative yield or a negative coupon for some type of equity. That's promising the. Buy bitcoin if this continues to this really interesting how about. Credit default swaps are settling bitcoin rather than settled in fee. I mean these are some wicked wicked cool ideas. But yes so i'll take out today is so i i saw a tweet by anthony pomigliano With quite smart except he said that they should take so game. Stop today announced that they were gonna Do a shell filing for a billion dollars of debt and equity. I think probably said equity and he said well. They should put it all in. Bitcoin and i said i thought to myself. No you know what they don't need to put it all in bitcoin. The first thing they need to do is pay down some of their high yield bonds because game stop is a high yield borer. The you'll borders themselves. Should i are typically. Their high yield is because they're straining to meet their interest obligations let alone their term Repayment of debt and to own. Bitcoin in that scenario is much different than a high grade. Credit a bit. has very low leverage or a higher yield credit has very low leverage game. Stop has enough that they have two hundred million dollars of debt that they should actually pay. It's a two year maturity. They need to pay that down. Get it off their balance sheet credit rating it'll change their default profile meaningfully because if you have no debt you can't default and then they could start playing the bitcoin game but the first thing for them to do is solve their debt maturity profile before they jump right into bitcoin. Okay and this is what sailor understands so well. He used an instrument. That's a quasi equity instrument. It's not a debt. Instrument or convertible bond is more large portion of it is equity. And that's what he did. He used the equity The convertible bond. Which is an equity derivative market to fund. His bitcoin purchases brilliant guy sailor. He's your rocket scientists. And you know it these guys are just. I went to mcgill. And i took a couple of engineering courses with these walking mainframe cures the beautiful thing about sailors. He can actually speak as well as the math right like you know. Here's the thing these some of these guys you go to school with there are just so smart. They can even speak. They speak the base layer of the base language of the world which is called mathematics. But they don't speak any other language very well. A walk on computer mainframe right so at least at least sailor can speak that he can talk the talk as well. Love it so true. All right greg. I could literally talk to you for the rest of the night. This is really fun. We have to do this more often. What the score is in the ncw game right now. Do you know. I have no idea so one guy said why. Are you doing it on monday night. And the only thing i could think of is because gonzaga's playing and i'm like okay. I haven't even looked at the score. But i'm hoping that there's still still enough time in the game. I want to thank you a look. I wanna point out something that. I'm really proud that i learned about you. So west point grad you. It looks like he flew an attack helicopter at at at one time in your career. I had a friend from my hometown. Montreal that actually went to west point as well and flew flew a helicopter for the us army in alabama was okay so he was based out of their lives in california right now. He's not in that but he's a great guy and Let me tell you You know it's it's it's the service that you guys give to your country that makes you guys so so good. I gave one of my roommates from cornell. Died in one nine. Nine eleven In that horrible accident and or that horrible event. And so i as a canadian. I'm i'm i've experienced some of the ebbs and flows of the us culture at way different than canada We need you guys. I need candidate get their arson gear. But we won't do it without the us doing because we never do. And this is why. It's so important for kids to embrace the alternative that i see as bitcoin that fix the money fix the world as mardi. Ben says this is so important and it's important for people that put like yourself did put service into the country. You don't do that because you don't love your country because you love your country and we're doing this for big point because we actually glove the country. We're not trying to destroy the country. We're trying to help the countries right. Absolutely you couldn't say it any better greg. It's so important. Like this is a non conscription army that you guys have the highest technologies in the world. Bitcoin can help so many things that can bring a six chip manufacturing back to north america. Which itself is a source of a potential national defense issue. candidate needs that because we're country of basically the population of california We don't have a big central bank behind us like the or the fed and quite honestly were trouble. And that's not does not make me happy because my my granddad serve the country in two world wars and he didn't do it because he didn't love his country he did it because he wanted a better future for our children. And i just want the same and i'm sure you do so. Let's do this. Coin thing. I wanted to thank everybody listening and to tell you guys take tremendous strength from the bitcoin twitter community. I've learned so much. And i wanted to thank you for the opportunity to To share my experiences greg. I'll have your twitter handle in the show notes. Is there any other links or anything else that you can. I wrote a paper. I wrote a paper. It's actually may be published in bitcoin magazine. But i'll send you the link to the paper. It's a it's in pdf format. It's it's long enough. It's maybe more than forty pages or something. So i put my history there. And i put my methodology for pricing pricing bitcoin as a function of credit default swaps. Why i think it makes sense. And i'll just send you that link. Okay i'll put it in our our rdm and you can attach that in anyone who has any questions or most importantly any any criticism okay. I'm wide open. I want you guys to car falls in this okay. I believe i'm right. But i'm never one hundred percent certain i will not go out and say i'm one hundred percent certain about very few things because you just can't be you need to hedge your risk and always learn and learn if you're wrong and adjust your position accordingly greg. Thanks so much for making time to come on the show. I thoroughly enjoyed this conversation. As i think i look forward to bringing you back on my friend. It's it's so nice to talk to you guys in. I'm not sure who who you guys want to win. In the nc double a. But i hope it's a close game. I hope there's a buzzer beater to to to celebrate so Thanks a lot for having me. And i look forward to our next encounter pay so thanks for everybody listening to the show. If you enjoyed the conversation be sure to subscribe to the show on whatever podcast app. You're using we really appreciate that and if you have time leave us a review so thanks for joining us this week and we'll catch you next wednesday. Thank you for listening. T i p to access our show notes causes. Oh forums go to the investors. Podcasts don't come. This show is for entertainment purposes only before making any decisions. Consult a professional. This show is copyrighted by the investors. Podcast network written permission must be granted before syndication..

anthony pomigliano california alabama Ben monday night north america twitter Montreal today two hundred million dollars next wednesday two year canada one hundred percent six chip this week one cornell more than forty pages one guy
"greg foss" Discussed on We Study Billionaires - The Investors Podcast

We Study Billionaires - The Investors Podcast

08:12 min | 5 months ago

"greg foss" Discussed on We Study Billionaires - The Investors Podcast

"It. Ray values done the homework. And yet he just won't say the word and he still relying on risk parity which way. You're also smart enough to know that that only worked when rates went from fourteen percent down zero or sixty basis points. It doesn't work going the other direction on behalf. Well he does in the hedge fund that i worked at for five years We tried to mimic the bridgewater Portfolio because why because it's brilliant portfolio interest rates truly are non correlated with equities but when they're correlated which they are right now meaning if yields go up bond prices go down and equities down as well then in your risk. Perry needs to be rewritten. You need another acid in their right. That asset is called bitcoin. You know it don't be scared. No you're so right. I mean ray obviously understood the long term trend of of interest rates direction. They were going brilliant brilliant. Yeah it was. It was such a brilliant strategy. Bit like all things that kind of comes to ahead based on what's playing out right now and if anybody understands that it's him but it's just surprising to see now whether he's doing it privately and just not talking about all those but it's like everything that theory of agents rate it gets harder and harder to resist it. When morgan stanley says that they're doing it when goldman sachs says they're doing it. Td bank in canada has just come out with a really really good research report where their head of research says. It's still a ponzi scheme. And that's good because you know if td bank actually embraced that they didn't ever brace high yield bonds until after thirty years until Until you know the us guys were doing it so successfully. So all. I'll say is there's always a continuum of people that are early. Movers and early adopters. But it gets harder and harder for people to ignore it. If big funds like morgan stanley new york life mass mutual come out and endorse it. You know one of the things. I wanted to comment on where you were talking about the The spreads being much larger on the anouar exchanges like bindi ants verses. Cassia me what i find interesting is so the. Cme obviously has scar tissue from past experience based on this fractional reserve banking system. That has this and when you look at how everything in this new crypto economy It's immediate kind of settlement. Kind of way. I mean that's the whole reason you have these. Us dollar coins that have been stood up as you can remove that risk of the fractional reserve system. When i find fascinating although you can go way more lever in these positions on these new exchanges like binavince the i would argue that the risk might not be there could be. Maybe there's something technically technically happening. That i don't fully understand but i do know that. They immediately settle. Which if if the risk is reaching the parody of whatever's on escrow okay it's immediately settled in and all parties are are settled out out of the positions without any type of impairment happening on. Okay then i will plead ignorance i. I've not traded on any of that. I do not have an operations department behind me to to go into depth in that and again i'll just stress. That's not what i am in bitcoin for. No i'm with you. Yeah you know. I think that you can create the. I'll go on the positive side. Any developed market needs a derivative market. Okay everybody says oh my god something like credit default swap was an evil thing if you believe charlie monger and And warren buffett on that fact and about purchasing fire insurance on somebody else's home and going out and trying to set their home on fire. That was an interpretation. That was wholly misinformed. The derivative market and the credit default swap market was such a brilliant in invention because it allowed the creation of credit indices much like equity indices. Equities don't have a maturity whereas all credit does have a maturity and therefore your index could theoretically mature and that's not what it index is. But what the cbs allowed is the continuous creation of a year contract that was placed in a and allowed guys like bill ackman to go out and purchase huge insurance on the credit markets and thereby hedge his equity positions. It was a what's called an upside down trade okay. He was using the top part of the capital structure to hedge the bottom part. But he did it. And what did he take out of that trade. It was some crazy amount. And it'll allow bill ackman to put up numbers during the current. The covid the cova crisis that he otherwise would not have been able to put up because his positions in hilton hotels and all these other things were getting carved he just went out and bought enough protection on the credit markets that he offset his losses inequities and people say. That was luck noman. That's not locked. That is skill in managing risk. And you need these instruments instruments to allow you to manage risk. And that's all bitcoin is. It's a risk management tool and despite peter schiff and all his venting over how it has no intrinsic value. All that peter schiff has successfully done is shown you what a poor really manager. He is okay because he has been for so long so wrong and he is not a position. Yeah okay so what do you need to always admit your mistakes. You need to understand when you're wrong and make adjustments accordingly and that's the key and so i will just say this is why we need it for canada. We need people to understand this. We need to understand the politicians to understand the fact that canada's trading at forty basis points is so much more important than the fact that it has this aaa credit rating which is wrong and this is the danger. The only thing. I wish that this website that you shared for the city has was a just a timeline that oh you drill down and you can get the spreads over time and you can do it. it's It's there. I don't have it in front of me and i'm not smart enough to show you on the computer. Is it on the same site. Yes it is. Yeah you can get you can get a history of the different spreads you'll notice in in the in the in the cova. Dad i see it now. Greg risk for free essay. You'll see an again. Everything will trade relative to the usa including all the banks okay. So all the banks. If you've pulled up j. p. morgan five-year cds. It trades in lockstep with the usa. It will not so there was a question that came up on your on your ask fos questions. Somebody said we'll high yield ever flip in the us treasury and the answer there is no okay. The us treasury will always trade at a lower yield then the high yield market. It doesn't mean that a particular corporate credit and there are very few triple a corporate credits laughed but there could be a time and this has happened in the past where corporate credit have traded at titensor spreads than the us treasury. It sorta hard to imagine michael happen. I'm sorry look at michael sailor house you can't you can't okay. Because he's a convertible has optionality in their put. Vall priced in there. So there's a big difference between a convertible bond which michael sailor is and a true senior credit. That has no equity vall. Incite michael sailor so smart. He already knows if he did a straight senior issue he probably have to pay about two hundred and fifty basis points more than treasury's but the reason you went to the convertible bond market is because the convertible bond arb- guys they want to buy equity. They want own his equity vault and by doing that. They effectively compress his yield spread zero. Okay and it's not though a true credit spread its equity vall. Impacting that yield spread..

zero charlie monger five years fourteen percent Perry And warren canada five-year Cassia Ray peter schiff Greg risk bill ackman td bank new york sixty basis points one bank usa about two hundred and
"greg foss" Discussed on We Study Billionaires - The Investors Podcast

We Study Billionaires - The Investors Podcast

08:00 min | 5 months ago

"greg foss" Discussed on We Study Billionaires - The Investors Podcast

"A strong run at two percent. Rick santelli rick santelli. Who traded in the pits for many years would agree with that. It's about you know it's it's about returning to reversions to the mean you know what happened in the last year was just a total manipulation. Would not it's like a spring a coiled spring and sits it's bouncing back so yes now when i if i was going to draw a line out on yes trend. It really kind of takes me probably around the three percent mark. Because this on the chart here i don't know if i do. I i see you there so for me that would probably be the the pain threshold just looking at it in a super simplistic. Let's assume you're right. Yeah no that that means that the ten year bond which has a duration of the boat in eight if it goes from one seventy two three percent another one point three eight times one point three means the ten year bond will lose another ten points value just to get to where you think it's going to cause maximum paint and i'm going to tell you what that's wicked more than maximum pain and then you take the thirty year bond. That's already lawyer. So i actually think you're three percent. I think that's high. I actually think it's really two percent and maybe even right around one seventy five because don't forget if it goes out to do they can't just stop it a to. They need to bring it back and actually make the bond perform so they need to get that extra twenty five basis points as making it appear that the bond is performing this yield curves control whether it's one seventy five or two fifty or three percent again will cause people to look the credit default swaps markets. Okay 'cause people will start saying oh my god. This is not a true reflection of risk. I need to look to true reflections of risk and the us treasury is not gonna be able to sell default protection on themselves. It's like you don't go to an arsonist. Purchase fire protection or fire. Insurance right the. Us treasury will never be able to control the credit default swap markets. And that is why you need to look at those. For absolute indications of stresses and risks in the system not manipulated like yield curve control. But if you want to expand on that so let's say it is somewhere between two and three percent. So i'll i'll i'll go with you for me. I think what you're saying there is they've they've gotta get ahead of. I was calling it a trend line at three percent. But really that's the point where they have to have it fixed by fixed by then so. Yeah you're you're probably right One point seven five to two percent is where they're to have to start doing some action and since we're at one point seven whatever one point seven one or whatever right now still basis points. It's like basis points for kids right. I mean at the end of the day. it's all about price rate bonds trade for price. I'm not trade for basis points. And each one of those basis points when durations and rates are as low as they are and duration impact is as high as it is. Those bon prices are very meaningful changed by changes in yields orbits again for folks that aren't intimately familiar with bonds more talking about the rates going from one point seven to one point eight or one point nine. Those bonds are selling off and they're selling off in a very meaningful way for a market. That is if if you talk about all the bonds together like greg said earlier maybe thirty trillion dollars across the whole global market on no three hundred trump sorry hundred trillion. Just so massive guys. And it's just what happens when three hundred trillion loses ten percent of its value. Oh that just happens to be the equivalent to the entire. usa deficit. now we're talking real money to who is this born by this is borne by people that have matched long-term assets being their Their purchase of long-term bonds with their long term liability so insurance companies pension. Plans all of that. So i really liked this chart. And i i just wanna show it to you. I don't know that this does a lot of favors for our audience. But i think this is a really interesting chart here where it takes the ten year minus the two year spread. And then when you compare that you see it start rise in like this it was it had a really meaningful indicator for the two thousand eight two thousand nine crisis and you can see it steepness of the curve. It reflects the steepness of the curve bell and you know right now. The only thing that the us treasury actually focuses on or not. I you know they're they're purchasing one hundred twenty billion dollars of bonds each month. But they're focused on manipulating the short term yield or the overnight the fed funds rate. But they have not specifically said that they're going to jump into the yield curve control. I mean based on just looking at the numbers and looking at the trend to me. It seems like you'll curve. Control is coming by mid year to the third quarter of this year. Just kind of spying. I have no experience in that in. And i honestly hope it's not the case because as a credit trader again. It's like well. isn't that interesting. The first the sweat is starting to appear on the brow of the of the borrower being the us treasury. They're starting to sweat there. That's not what you wanna see a lender right. You actually just want to see confidence you want to see. Even though they're out in the market purchasing one hundred twenty billion dollars of debt each month. They're doing it in a in a fashion that isn't implying pegging the yield curve per se. I need to stress that the us treasury deciding to by high yield bonds was in an of itself such monumental event and it was only because they need to protect against the downgrade of four potential candidates being downgraded from investment grade or the triple be credit rating level to the double be credit rating level or high yield. Okay those four credits. Were general electric general motors ford and a t and t those four credits themselves are bigger and the entire high yield bond market. Can you imagine if those four credits got downgraded high-heeled bond market the clarity that would cause the equity markets and in the subordinate markets of the capital structure. It would have been crazy. So the the fed went in and said yes. We can by high yield bonds. Now they didn't just by those five or four names. They decided they would buy the entire market. Well now you've seen that high yield bonds are at the lowest yield. They've ever been in history. I will guarantee you again. I'll make another guarantee it's one hundred percent certain that if you own high yield bonds right now you will lose money on a real basis over the next five years on a real basis and you probably will on a nominal basis as well after you. Subtract out true defaults okay. It's only math. You need to pay your high yield bond manager of fee after you've paid all your fees and you've paid for defaults anyone who owns high yield bonds right now i don't know they must be just getting into the game. Okay because if you showed me this thirty years ago i honestly would have told you while it's not it's impossible it would not exist yet. Here's where we are. You know you. You said something to me that i had not thought about that. I think is a really important point. When we're talking about this yield curve control they have no incentive to announce that they're doing it they have no incentive to actually come out in a in a messaging cry was advising if i was advising him on that one hundred percent if i was the wall street guys advising them on that i would tell them. Do not do that. Yeah you can do it in practice you can do with the numbers could don't stand up there on the stage and say we were officially starting yield curve control. And i think you're right. We're a buyer at any price as long.

Rick santelli two percent ten percent two thousand three hundred trillion thirty trillion dollars last year ten points ten year eight one point thirty years ago hundred trillion one hundred percent three percent greg four names each month one seventy thirty year bond
"greg foss" Discussed on We Study Billionaires - The Investors Podcast

We Study Billionaires - The Investors Podcast

06:42 min | 5 months ago

"greg foss" Discussed on We Study Billionaires - The Investors Podcast

"In the us. It's a one and a quarter of two thousand fifty and it has lost twenty six percent of its value in one year. That's a tough mark to market. That's twenty six points that's eighteen years or more. It's twenty something years of coupons of the one and a quarter coupon to make your price loss back. This is tough to report to your bond dad. Unitholders isn't it. Hey thanks for coming out. You just lost twenty six percent in one year now. That's only a one hundred basis points changing in rates for its went up. Four hundred basis points complexity starts to come in. The price won't go down. There can't go down eighty percent because just doesn't there's the convict's the is the is the shape of the basin curve. But i'll tell you. These are big big big price. Movements for insurance companies pension plans that have matched their liability suit against these assets but all of a sudden off twenty six percent. That's tough to take to your unitholders. So yes you're hundred percent correct on that price. The difference though is. I'm not certain that it meant they had to reach out the yield curve or you reach out the risk spectrum that respect from is always there it's always relative generally to the us treasury curve the incentive. Perhaps you could say we're high yield bonds at a three hundred basis point spread over treasuries starting with a fourteen percent yield which meant. Us treasuries were fourteen. Percent adds three hundred basis points on top of that. You get seventeen percent. Is that seventeen percent more attractive in nine thousand nine hundred eighty eight versus this year when the ten year is one in one seventy you add those same three hundred basis points on top of it it may look more attractive but then you think about it you have the rates that could be going in the other direction and you may say i don't like bonds of any duration let alone the fact that you have that spread of three hundred basis points over so it's harder for me to make that to say that it was pushing people out now does it. It makes things like the discount rates on all assets lower which means the price appreciation of all assets definitely goes up but was it really pushing people out. I think that always existed president. I think there were always the people that would take that incremental three hundred basis points. And they're still people right now that won't take that incremental three hundred basis points at one seventy and i think they're actually being very smart right now not taking that incremental three hundred base points but then you talk about the price mechanism for pricing growth equities and everything. Yeah there is a cascade. Not guess where i would push back on it bragging. I'm curious to hear your thoughts on this. So when we look at back in in the late eighties and you look at the debasement. That was occurring. It was showing up in the cpi gauge. It was showing up as our debasement rate back then was call at fifteen percent and you had that actually showing up in the cpi gauges fifteen percent. And i would argue today that that gauges completely utterly broken and that the way that the the basement is kind of getting inserted into the system is through the bond market. Mostly this a little bit of being you. Bi here recently and because it's not showing up the cpi gauge. You have people in equities you have people in fixed income alike that are stepping into those trades thinking that. Cpi is real when in fact it's actually being manipulated lower cancer. They're actually getting into these really risky positions but they only become risky. If there's a new alternative that shows up to the currencies that everybody is using alike around the world like that all unravels itself but it has to have some type of catalysts that provides a relief out. What a great explanation so now. I understand what you're saying. You know what's neat so. I never traded bonds for inflation expectations. I was a credit guy. And this'll help explain. And i believe this sincerely. I believe that credit concerns will overwhelm inflation concerns whether those inflation concerns are actually being properly measured on. I believe that it's credit. It's going to be the defining characteristic of setting the base rate so every base rate is a combination of inflation expectations. As you point out. And historically that's been the overriding factor and credit component. And my argument is that the ten year. Us treasury has an inflation expectation in it but it also has a credit component. It is not even though it's termed the risk free asset in the world. And it's there's no one that's better. It's still not risk free because if it was risk free. The credit default swaps market wouldn't be charging you a premium to insure against the default of the us treasury so my argument is yes inflation expectations are. They're their concern for all fixed income investors. But that's a backward-looking concern the forward-looking concern is credit now. We'll credit be impacted by increase interest rates due to inflation or one hundred percent. It's you know. Ause effect. But i see now what you were saying about how the gauge did the. Cpi agree is not a realistic chop wood index. The money supply growth is michael. Sailor would say are all much better. Inflation inflation of shoe inflation. It's a fascinating topic. That i think really kind of gets to the root of why. There's so much misconception. In just the financial markets in general because juno as well as anybody greg if you went and talked to a hundred people in finance and said is cpi your inflation gauge in. I think ninety nine out of one hundred of them would say yeah. What else would direct. Well that's a dumb question unless though and this is what a head scratcher for a lot of people right now. Wirehouse prices going crazy in in most countries for sure north america you know. I just saw wall street journal article about what's happening with house. Prices in in the united states and canada. Let me tell us is going off the charts as well and if that's not an indication of inflation concerns. I don't know what it is and why is that. Well people will say is your. Is your price really going up for. I asked the question. Is it just that your unit of account is going down the quilt right. So your house doesn't really change in value. It's always been valuable and there's arguments. Yeah that people will pay more overtime for that value but certainly not anything like the growth in the house prices right now and it's just that the unit of account the.

eighty percent fifteen percent seventeen percent twenty six percent canada twenty six points north america eighteen years fourteen percent one year hundred percent united states one hundred percent one today late eighties one hundred fourteen ninety nine twenty something years
"greg foss" Discussed on We Study Billionaires - The Investors Podcast

We Study Billionaires - The Investors Podcast

07:49 min | 5 months ago

"greg foss" Discussed on We Study Billionaires - The Investors Podcast

"For your host preston cash back all right. Hey everybody welcome to the show. And like i said in the introduction. I'm here with greg voss and from what i hear greg everyone keeps telling me you two need the talk. So here we are. We're going to do this. I'm flattered thank you for having me so greg i wanna start off just kind of with your foundation early on were you always in fixed income since the starter. Is it something that you worked. In the past decade s- over thirty years and with a focus on credit and fixed income. And i did trade most other instruments including equities. There were times when i would take equity short positions against bond positions. We could talk about that but yes. I'm a trader focused on credit markets. And i've traded all sorts of derivatives including credit default swaps bank loans etc. So when you first came into the market give us an idea of where the ten year treasury was at just so we can kind of talk about this big credit cycle. And kinda where you at that point in time in some of the narratives in that kind of stuff excellent question so yeah. I started my career in one thousand nine hundred eighty eight and the us tenure was at about fourteen percent. Let's not argue over. Subtleties crash of nineteen eighty. Seven was my middle year at business school and one thousand nine hundred eighty one. I started working so the crash caused yields to come in but then they rebounded a little bit. So let's call it fourteen percent on the us treasury it. Did you know hit about a nineteen percent top in one thousand nine hundred eighty two ish so they did come down somewhat from nineteen percent to fourteen percent but in one thousand nine hundred eighty eight. That's when i got my start. So greg back then i would imagine that the narrative of rates could still go back up and hit new highs. Was that something that was still being talked about when you were coming into the fold. Yeah you know it's it's it's really a bit of a different dynamic. I mean there was paul volcker. He was bad for chairman in the in the early eighties and he he was determined to snuff out in inflation and so he just went hard on on short term rates Jack them all the way. Up to stop the inflationary spiral and rates Eked out it wasn't at the time there were a lot different things happening for example crash in nineteen seven on the stock market crash. October nineteen eighty-seven that send a ton of people for a loop. Because they were new things on the block press. Were folio insurance. They called this thing using futures portfolio insurance. When you look back on it it was so infantile but oh no no. This was the the the latest in grade. So yeah baen. Math was was interesting. It wasn't a certainty that rates would come down but the general feeling was that they would normalized from those continuous high levels in the late eighties. And then there was this Might inauguration and i've said this on other podcast was. I started working for the royal bank of canada. Nineteen eighty eight and it was insolvent. Okay this is a crazy but true scenario because it had way too. Many lesser developed country loans l. d. c. Most of those loans were in latin america but in one thousand nine hundred eighty eight treasury secretary nicholas brady came out with a plan. You solve the mexican debt crisis and it was based on zero coupon treasuries as collateral against the obligation and they changed a five year. Loan these five year loans that were non-performing. They changed into thirty year instruments. Okay the pay. The banks did not have to write down the loans to market. They were backed by zero-coupon treasury strip bonds which at fourteen percent. You can appreciate over a thirty year term. How low the dollar prices is a brilliant strategy but it allowed all money center banks in the world to escape themselves back on after making these Horrible loans to countries. And this was my first inauguration. And i'm like hold on a second. You take this business school you you come to work in the system. And i'm working for the largest bank in canada and it's it's insolvent the value of its liabilities exceeded the value of its assets which were loans and therefore the book value equity would have been written down do zero if they had to write those loans to market ehich. Just i looked at this cynical. Then how is it possible. This whole system functions and it functions because there's a too big to fail implied but back to the central banks and this is different manufacturers hanover. Chase manhattan all these these banks in new york city which have been combined in. There's been some Absolutely you know mergers and acquisitions but These banks were in the same position. So treasury secretary nicholas brady came up with this brilliant solution and it was my first. Welcome to the firefox s- You know you're working for a bank in die. If i ran out and told the newspapers this i be fired in a second and only that would run me at town because the banks are the safest things around will guys. They're not okay. You just don't understand mathematics. And i said yes. The banks can be bailed out by the government and the only way they can do that is by printing money. And that's when. I started looking for a solution to it. Yeah it's it's amazing to see how the restructuring effectively the the debt jubilee. But it's just the it's being structured. It's all just being completely restructured in being assumed at a collective level by undertaking that reorganization transfers of risk. As you're implying you know. It eventually ends up on the government's balance sheets and that's where it is now. It can't go any further. This is why we are at a particularly perilous time in the debt cycle because it got transferred in two thousand eight two thousand nine from the financial system full onto the government balance sheets and they did nothing to solve that did not raise tax revenues when they had a chance to pay down their debt. And so it's a mathematical certainty. Now that fee. It's will debase. I want to say what's really fascinating about the example you just provided is the two pieces that are vital to what you're describing is a reduction in the yield and extending the duration. You said rheinland. From short duration two out to a thirty and the yields went from whatever they were down to zero. And when we look at what's happened from when you first came into fixed income to today not just in canada not just in the us but literally globally. We've seen the yields trickled down from those levels that you described sixteen percent. Plus you know this. The world trade off the us right every single other yield curve in the world trade off the us treasury. Okay you can say oh. That's not the case. I'm a proud german. And that's not the case. And i'll look you right in the eyes and say euro everything in the world trade off the us treasury and everyone will say well then how come there's negative rates in ecb land but not in north america and you can say because that's in a different currency but if you put everything into us dollars you will see that everything in the world trade off the us treasury as it should has it's the defacto reserve asset slash currency of the world. I think an important way to look at currencies and fixed income because they're very closely related is just the reflexively between them and when you look at the amount of dollars that are in the system from fiat currency compared to the euro or the yen. Or whatever you're just looking at that size the sheer size of it is. What's driving the impact that you're describing there not just domestically but the eurodollar market.

paul volcker nineteen percent sixteen percent two thousand new york fourteen percent one thousand latin america late eighties thirty year canada north america five year two pieces one thousand nine hundred eigh early eighties nicholas brady greg voss past decade s thirty
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

05:03 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"He's ever responded to me in a tweet he goes. I say peter. Your son is smart. He's playing probabilities. I think bitcoin goes to a million dollars. A coin with a three percent probability. Bitcoin was trading at about ten thousand bucks at that time with a three percent profitability. It goes to a million dollars coin and a ninety seven percent chance it goes to zero expected value of that binary outcome is thirty thousand right so ninety seven zero zero three percent times a million and i quote around. Paul i said going to a million while peter schiff finally response migos my son's only eighteen years old. He's an idiot. Which your excuse the and that was the only that was the only response god out of him and since that. Am like i love. Your son is waste martyred is. I don't have to see him to be arabs for. He said my son's only eighteen years old. What's your excuse. I get so. He didn't call his son in need. He implied surly. I need you and animal care that let's do this and talk real mathematics rather than some japa- valuations of what you think is value. He's been wrong for a decade. I'd love to send out but the problem is you wouldn't shut the fuck up when we would you debate folks over. Everyone and he won't he won't he won't ever do is go. Let me let me just comprehend what you're saying. Let me russia or is it. Have you got a point. Points like that hype thing. He takes his position and post rationalizes. It's a waste. it's real. Well it's fair but he also has as a money manager he'd never manage any of my money because You know if you don't admit you're wrong at times and no one is ever one hundred percent correct. Then you have to make adjustments to your portfolio and by not adjusting that court folio. He deserves zero percent of people's mind. Forget i forget that guy this greg. This was amazing. I love this bickering. insurance okay. Go out soon. I think we would have to do a follow up. Because i think i'm going gonna get a bunch of questions on this. I've loved this. Please keep doing my pleasure. If i can never do anything for you just ping be reach album. I'll tell you. I can't wait till we meet in person in some continent or whatever. I love the stuff you're doing i wanted. Thank you as well for being a you know a. You're helping my kids in your own kids helping my kids. You're helping the kids a every country in the future. So i want to pubs that we have eight of them if we had eight of them. I don't know how many will have after this will ovid mass by dad. They're pretty fun. Where are they what what. We'll cities montreal. They're all in montreal. While i am into begun to canada this.

thirty thousand Paul montreal three percent peter schiff canada eight ninety seven percent peter zero percent zero about ten thousand bucks one hundred percent a million dollars eighteen years old ninety seven zero zero arabs a million a decade russia
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

04:55 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"She gets to sell books to. There's there there is an incentive there that might be a truly believe she just doesn't understand what contagion in a financial market looks like and nobody out there who trades equities even understands the importance of the prime markets in the credit markets. Because everything starts with credit are full capitalist system is built on credit and equity markets are just the tail of the dog and when the dog which is the credit markets gets upset that tale like wags like some sort of insane maniac. But they get with around what happened in the equity markets right now. We haven't even touched on one of the things not looking at whether it's doing today but one of the things that the discount rate is being adjusted for growth stocks like the high tech future cash flows are a lot of cash flows. Come in the future projected. They're not guaranteed. But as you change that discount the value of those cash flows goes down. Meaning if you change the discount rate increase the discount. The value of those cash flows goes down and hence the value the perceived value that equity goes down. People are saying there's an question for With is the the discount rate of a dividend in perpetuity. Okay and it's one over r. One over one over the discount rate. So if if it's a ten if you're discount rate is ten ten percent or point one. Your multiple is ten but then you have to adjust it for growth and the equation becomes one over are minus g so are being a discount rate minus the growth rate. And that's when you can get these huge multiples okay. Because if the growth rate is over ten percents year essentially almost dividing are your your your multiple becomes one divided by something very close to zero and then you get a huge multiples of tash flow. Well all of a sudden if that are start increasing and that g starts decreasing..

today one ten ten percent zero over ten one of the things things One
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

05:38 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"Here's anything do you do you a by fire insurance on your home and then sell it be okay but then you sell it known you own it forever. Bitcoin is insurance. That you own forever okay. And someday if we move to a bitcoin standard then we'll be buying and selling bitcoin. But until that happens you need to own this insurance forever. You don't buy fire insurance from a pyromaniac okay. You do not by fiat currencies and by default protection from the us government. It's it's it's asinine unique a buy bitcoin or insurance from someone who is counterparty neutral. Okay or an old counterparty risk. Or let me i want. You told me if i'm right and wrong. Okay is this is the bitcoin market actually the bond market and everyday. We've repricing the insurance intentionally. I mean look. A market is a market. It's it's the most beautiful thing about capitalism markets are truth okay. I'm not going to tell you also. Bitcoin maxi. i'll be very honest about that. But am i going to tell you. There's not other uses of other blockchain technologies out there. I had my views. But i'm certainly not going to tell you like peter. Schiff tells you that. Bitcoin has no intrinsic value because that would be dumb. No it clearly. Does i mean. I've tried to debate. Had him on my show and he just doesn't shut the fuck up when you're trying to talk about doing and then also he's intellectually dishonest. Because you actually listened to any arguments but let's forget him for now. I'll sit up at the bay wisher but the point is if you pick when i'm not using it as a currency yes. I'm getting paid. But really i'm getting paid in it because i'm just. It's almost like i'm being paid in insurance abroad. The have that get paid in this grants. And i feel like i feel. I feel like it's almost like all these things get traded. You've talked about the bomb. Markets being liquid markets. You've talked about the debt. Markets being traded you've talked about the credit default swaps being traded. Because one more component component of all that is a trillion dollar market. Yeah it was worth a trillion bucks. Okay at fifty. Four thousand bucks. I think is when it's worth a trillion bucks. No it's worth a trillion. A trillion is bigger in the entire canadian. Banking system okay. The value of bitcoin is now larger than the entire canadian banking system. The value of bitcoin in a couple.

fifty Four thousand bucks peter a trillion bucks Schiff a trillion A trillion dollar canadian one more component wisher pyromaniac bitcoin
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

05:52 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"Five percent of nine hundred. Trillion is forty five trillion forty five trillion. Divide by twenty million. They were talking some big bananas. They're right not no. no disrespect. Mark cuban but yet those are real. Okay it doesn't. It doesn't work that you divide the forty five trillion by twenty one million because what actually happens forty five trillion to go into that. There is the premium as the price us up. No you're totally right. But you know you gotta start with something on gotta start with valuation metrics. Michael sailor thinks that goes to one hundred trillion. So one hundred trillion. Divide by twenty million. So you're talking five million my point being this guys we're at a rounding error rate. I don't even know what bitcoin is. And i try today. I try not to look at it on a daily basis although i do trade instruments on the stock exchanges that that That are impacted. so i should know where it's trading when markets are open but. Let's say it's fifty two thousand which it was this morning. Something or was it fifty. Four fifty two doesn't matter. We'll five with beckham for rounding. Error is such a rounding error compared to where it could go. And incidentally i got involved in bitcoin. One thousand bucks. Bitcoin actually less risky and a better trade right now. Of course today. Than when i got involved in it when it was a thousand dollars. Okay so why. Is that the case while the network stronger the adoption the use cases is playing out. You guys got you got caseload. Michael sailor whose honestly probably the you know. I love rocket scientists. Because i'm actually. I took turbomachinery in engineering. I sort of understand with these guys. Thank listen he's got it man he had he gets it break down to first laws of thermodynamics. Do all that. It's inevitable that if you own zero bitcoin right now. Your taking extreme amounts of risk compared to if you have an app portfolio allocation. That's what people don't get this. Risk management is bell hedging upside and the downside listened to that point. Anyone listen to that point. They really kind of. Take that in a sec. Quotable as a quotable thing you just said that if you need have managed risk yet but i think i've managed risks my whole life and that's what you have to do is play probabilities and play expected values. I sort of like peter schiff. I maybe not but here he just he. He is trust absolutely digging himself at deeper hole and has a traitor. If you ever get that you blow up and you're done you're gone a cart. You your honor gurney. You're off the floor. And you never return. But peter schiff is just replaying this whole thing. I think it's feeder. I would love to defeat them. We wanted to debate debate. Our sailor random called michael a chicken for not taking the food. i know. listen curious. okay. I sent. Hey peter. I did send your son bitcoin for his birthday yes. I was one of the people. 'cause he actually gets it. Spencer shift gets a..

Mark cuban twenty million five million Five percent one hundred trillion Michael sailor peter forty five trillion nine hundred twenty one million fifty michael peter schiff today beckham One thousand bucks fifty two thousand Spencer this morning five
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

02:40 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"Okay whether it's insurance whether it's a platform like You know bitcoin wallet anything like this. But they're only twenty one million of them so you better get your piece of it because it's going way way higher so let me just go back on this insurance thing because i think this is so. We've spreads close. Would you see that as a reason for the bitcoin. The value bitcoin. To maybe drop some you see the money yes potentially but they're not going to close what it's a one way train. It's it's it's just mathematics so anyone who's buying Who's selling fall. So every every transaction you need a buyer and seller of default protection anyone who's selling default protection on the united states right now is chances are they're using leverage and that's the dangerous part so they're picking ten basis points they think. Oh it's free money. i'm leaving. May their leave me ten times okay. So they're getting a full percent for free and then all of a sudden it widens and they get a tap on their by their boss. Why are you selling so much. Reduced your reduce your position and the as a seller of protection all of a sudden become a buyer. And that's what happens. The sellers evaporate because the leverage they re using is gone so the interesting thing here is fit. Currencies are are are. Set up to fail as we've talked about in this. Because of the way the government's print money but he's in a death spiral debt spousal which puts bitcoin in a. Would you call the increase like a yields. An you spiro. Know what how would you. What's because if if it's if it's like a magnetic forces right yes of energy conservation of so the same thing in finance like Yes if the intrinsic value of it will increase if you buy that to that valuation methodology we. We don't even have to go there. We can go as a function of total global assets. Right why don't we start with added. Just say if. Bitcoin does become the global reserve asset. Then it should occupy percentage of everybody's portfolio and i liked to started as the total global financial assets as i see them including real estate is nine hundred trillion dollars u. s. nine hundred trillion dollars isn't unreasonable to think that if bitcoin becomes the global reserve asset could get five percent of global financial assets..

nine hundred trillion dollars five percent twenty one million ten times one way train united states ten basis points bitcoin
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

05:03 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"Only a business. I'm just not going to tell you if i have a problem. Oh that you know the month later. Whatever i got a letter saying in sixty five days or your accounts be closed because we don't go service you after twenty five years and i'm like oh fuck yourself but i think that you know. I think the problem is here as well. I think that's multiple problems. They've become too much nanny state. I think the other problem is. I'm a useless customer to them because i'm not in my overdraft. I'm not taking out their services. I think they won't customers who are kind of broke. Who are always in their overdrafts. They're making fees off them interesting. Okay because essentially i get a free service from them. I get free banking. Because i don't actually i don't have any comment can argue with you. You know what. I'm gonna use very logical but we don't need this anymore. So i switched over to one of these online neobanks. Okay and it seems to be perfectly. I don't need a branch. I basically don't need bust. I don't it was like blockbuster. Their asset was to have all the locations in every city anyways year liability. When next phil competed the banks of the subject. Yes i agree. So having worked in banking So i i. I got my start trading at a bank and then i moved to the hedge fund side so banks were always counter-parties. You know yeah there you grow up you know all this zoom offers. They have comfort in their banks. Because that's how they grew up in off none of the none of the kids these days they they do banking on their phone. They don't actually even go to a physical branch retail rash. So that's what's changing there. And then.

one sixty five days phil after twenty five years month later
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

03:57 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"We each other on that standard now. We're not because none of us wanted to go for big car right now. So what we're doing is dumping dollars or pounds and just hold in. Bitcoin and i do on an eight week basis. I hold business and personal cash flow of eight weeks which is a month of running costs. A month of leeway everything else is in big one. So that's what i want to do. Is i want to be paid in bitcoin. 'cause that is my standard and i think the great thing about this is that it's it's optional. But as more people poured into the gravity of this bitcoin standard the stronger. It becomes an out of the car. Seat becomes any kind of accelerates it one hundred percent correct You you know. We talked about the store value. Have you know people there if you have never transferred money internationally using bitcoin. If you have a bitcoin wallet. And i've done this. I've sent money to australia. I've sent it to an indigenous group in australia. That i felt i needed to support I've never i never met them. I was able to get it settled within ten minutes. It was more than zero dollars worth. It was less than a car but it was substantial amount. I don't wanna overplay the fact that technology was so so beautiful. If you've ever tried to send an international wire transfer and is the most painful process that you can possibly go through with commercial banking. Okay you you get worried about these swift codes. And i actually did it on friday just. I don't know you know. I've done it before it. On friday i was transferring. Some money to florida and The the address of the bank. It was settling in pittsburgh so was pnc bank in pittsburgh. I didn't actually have the address a new the street. The bank was on the swift code but there was a chance it because the address was missing it. This money would not settle. I'm like aren't you of your minds. Is this actually possible in the twenty th century that because you're missing a street address on a bank and i couldn't get in touch with anyone so i said okay senate anyway and i make by. I was highly confident. It would settle but i wasn't certain come on. Let's let's stop pretending you guys. Bitcoin and e e scale ability the visibility transferability. Bitcoin is the most beautiful thing. You were talking about gold. Come on let's try it. Let's let me try and goal to australia. I can try as hard as i want. Peter schiff notwithstanding it ain't is good it says naught is good it okay and by how much how much gold.

twenty th century pittsburgh friday eight weeks eight week australia Peter schiff more than zero dollars one hundred percent florida ten minutes pnc bank less than a car senate month bitcoin
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

03:31 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"If you're a global lender and you're losing money in argentina and then you're losing money in country x y z. You're like hey. I'm gonna take my money out of canada before i lose my money in canada as well. You know it just becomes. It becomes a bit of a steamroller and if you're losing your shirt over here. You're far less less prompt up to go inland money to another country than lose. Your should which is why you have to think about web. How can i keep my money because if it's money it's my well. The rule four doesn't it doesn't have to be currency right value. I'm saying easing currencies. Like where can i put my currencies. Because if i don't want to hold in the currency widow. I put it because i mean roughing currencies. They're all gonna fail nita somewhere. I have property goad there. You go point. Yep yep firefox All these things hard assets you know And i love the community to being a solid. So is okay that we start talking about bitcoin cash So here's the cool thing rate first of all. I'm fifty seven years old. I just discovered believe it or not. I've just discovered twitter. All right. And i must say that these guys are some of the smartest people i've ever interacted with our a some of them are they have high conviction. There's nothing wrong with fight conviction. But the bitcoin twitter community is absolutely remarkable in its ability to to assess risks that most people if they don't get it and it's so neat that having worked in the markets for thirty years. It's really really neat. To come across a community is so tuned in as i've come across bitcoin twitter community and i'm it's a pleasure to be a part of it on a plea by proud plead. Hey but this is something. I've been looking for for thirty years. I've been looking for this solution for thirty years right. So how did you discover bitcoin. Great questions so to be honest rates. I i am lucky enough. I got introduced. Because i was a founding shareholder in a company called three i q which was the first exchange traded not etf its exchange listed close closed end. Bitcoin fund on a regulated exchange in the world there was race scale in the us cadet traded on the pink sheets. We ought bitcoin listed in canada on the toronto stock exchange. Not i was a founding shareholder and it was actually the the gentleman who whose idea was for this fun. They introduced me to. I'd heard about it. I never seen it and he sold it to me with one screen. We are actually one of my jobs in montreal him up. I'm a small business owner in montreal. Even though i live in toronto. I own some jobs and we happened to be at one of my pubs in montreal and he goes look at this thing called trade block. And i'm an engineer and i see this thing in action and like heard of bitcoin. What this thing of beauty. This is the most beautiful thing. I've ever seen from an engineering perspective. And it was you know. And i said this is the solution. I've been looking for for thirty years at that time. Twenty five years. You know this was in two thousand and sixteen. I said i'm in. I want this product to be able to be offered for all canadians to be able to get exposure to the antifa. Okay call bitcoin. The antifa end. That's what it is and.

argentina canada twitter thirty years Twenty five years one screen fifty seven years old three i q montreal first exchange one two thousand canadians four first sixteen rule toronto firefox block
"greg foss" Discussed on What Bitcoin Did

What Bitcoin Did

03:59 min | 6 months ago

"greg foss" Discussed on What Bitcoin Did

"That you discount those add change the net present value of those cash flows changes while so again everything's correlated with the key is the us treasury ten year three year. Five year right. Okay and so what i'm trying to understand is these are. There's really liquid market these bonds traded continually and Let's use the example as the pension funds. They always want to get that always happier with a lower return but a safer time right. Generally speaking just depends again. Everything's rejected so if you if you're very risky but you're being compensated rethink your being compensated for you. You you You make that. Investment is wa but say you holding assasin. That's got. I don't know ten years left on it at a certain a say you still got to five the rate on it. Transfers and coupons percent coupon. Yeah okay five cent. Coupon would be a reason. Would there be a reason to sell that. And then buying a new bond with a new coupon because you've only got five years left you think okay. There's another one out here. Is like a low yield. But it's got a longer time frame on it will exchange. The dow is goes okay. He also leads. I think he might have just confused on the if it was a longer timeframe the yield generally wouldn't be lower would be hired higher. But let's just assume so. So yes why. Why do bonds trade. Why do people make adjustments to their portfolio. Well there's inflation expectations they adjust in there for the safe. Inflation's going to increase going to decrease my duration gonna take twenty year bond and trade that twenty year bond for like a six year bond. So there could be all sorts of mixing and matching of maturity buckets. There could be things like You know all of a sudden you're you've been redeemed. Let's say you're a hedge fund manager and all of a sudden you're getting People wanna cash will you. Don't deliver them bonds you have to deliver them cash..

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