1 00:00:00,080 --> 00:00:02,720 Speaker 1: What's up, everybody. My name is Joe Brown. This is 2 00:00:02,840 --> 00:00:05,800 Speaker 1: financial heresy where we talk about how money works so 3 00:00:05,840 --> 00:00:08,680 Speaker 1: that you can make more, keep more, and give more. 4 00:00:08,800 --> 00:00:12,080 Speaker 1: Today I've got my good friend Jack Nobody Special Finance 5 00:00:12,720 --> 00:00:15,760 Speaker 1: on the channel where you've got a bombshell report for you. 6 00:00:16,520 --> 00:00:19,080 Speaker 1: Nvidia has been in the news a lot recently, mainly 7 00:00:19,120 --> 00:00:21,760 Speaker 1: because its stock price has been going through the roof 8 00:00:22,600 --> 00:00:26,720 Speaker 1: reaching new levels and then going through those roofs as well, 9 00:00:27,120 --> 00:00:32,120 Speaker 1: just skyrocketing. And Jack did some research and found out 10 00:00:32,159 --> 00:00:35,760 Speaker 1: that might not all be above board and started doing 11 00:00:35,840 --> 00:00:39,400 Speaker 1: some digging figuring out where these orders are coming from 12 00:00:39,760 --> 00:00:45,839 Speaker 1: and the companies involved in these very suspicious numbers of orders, 13 00:00:46,040 --> 00:00:48,440 Speaker 1: and what these companies have done in the past, and 14 00:00:48,720 --> 00:00:53,159 Speaker 1: found out some if it proves to be true, some 15 00:00:53,360 --> 00:00:57,400 Speaker 1: very crazy things, some very shady things happening behind the 16 00:00:57,440 --> 00:01:02,000 Speaker 1: scenes potentially here. And so really excited to have have 17 00:01:02,480 --> 00:01:05,560 Speaker 1: Jack on the show today for you, and you can 18 00:01:05,600 --> 00:01:07,800 Speaker 1: be the judge. After listening to all of the evidence. 19 00:01:08,120 --> 00:01:11,679 Speaker 1: You know, there's not necessarily a fire, but there is 20 00:01:11,800 --> 00:01:13,760 Speaker 1: a lot of smoke, and so we're going to go 21 00:01:13,800 --> 00:01:15,640 Speaker 1: through a lot of that. So really excited for this 22 00:01:15,680 --> 00:01:18,600 Speaker 1: one for you today. Report on what's going on behind 23 00:01:18,640 --> 00:01:20,840 Speaker 1: the scenes at Invidia. All right, Well, thank you so 24 00:01:21,000 --> 00:01:24,480 Speaker 1: much Jack for joining me today here. I am really 25 00:01:24,520 --> 00:01:29,959 Speaker 1: excited to get into this. Like we said earlier, unweaving 26 00:01:30,280 --> 00:01:34,000 Speaker 1: the story of Core, we've here, So let's start with 27 00:01:34,040 --> 00:01:39,160 Speaker 1: what's going on right now within Nvidia. 28 00:01:39,240 --> 00:01:42,560 Speaker 2: All right. So, unless you've been under a rock, you've 29 00:01:42,560 --> 00:01:45,280 Speaker 2: probably heard AI mentioned a few times in the last 30 00:01:45,280 --> 00:01:48,920 Speaker 2: few months, right and in Vidia is at the epicenter 31 00:01:49,480 --> 00:01:53,160 Speaker 2: of the AI mania, and Vidia is AI mania. Let's 32 00:01:53,200 --> 00:01:54,760 Speaker 2: just call it what it is. Most of the games 33 00:01:54,760 --> 00:01:57,320 Speaker 2: in the S and P five hundred have been from 34 00:01:57,360 --> 00:02:00,600 Speaker 2: the magnificent seven big tech stocks, and then VideA has 35 00:02:00,640 --> 00:02:05,279 Speaker 2: been the leader of that pack. Without Nvidia, the AI 36 00:02:05,440 --> 00:02:08,920 Speaker 2: rally would not have been and we'd be looking at 37 00:02:08,919 --> 00:02:10,959 Speaker 2: an S and P that was maybe up one or 38 00:02:11,000 --> 00:02:14,240 Speaker 2: two percent this year, maybe even down. So in Vidia 39 00:02:14,440 --> 00:02:19,240 Speaker 2: is driving the growth narrative of the entire stock market 40 00:02:19,320 --> 00:02:23,440 Speaker 2: right now. And within Nvidia, we're all familiar and VideA 41 00:02:23,520 --> 00:02:27,640 Speaker 2: just posted a fantastic quarter. I remember being blown away 42 00:02:28,280 --> 00:02:31,320 Speaker 2: by the numbers, just amazing growth. Their growth had already 43 00:02:31,360 --> 00:02:36,760 Speaker 2: been amazing, and I remember hearing their projections a quarter 44 00:02:36,840 --> 00:02:38,919 Speaker 2: ago and being doubtful of the numbers they were given, 45 00:02:38,960 --> 00:02:40,600 Speaker 2: and then they came in and they blew away even 46 00:02:40,639 --> 00:02:44,560 Speaker 2: those numbers. So just phenomenal quarter. And then the stock 47 00:02:44,600 --> 00:02:47,919 Speaker 2: reacted kind of strangely. The stock shot up eleven percent 48 00:02:47,960 --> 00:02:50,960 Speaker 2: after hours after the earnings, and then the rally faded 49 00:02:51,160 --> 00:02:54,960 Speaker 2: pretty much from the opening bill. We saw some selling 50 00:02:55,000 --> 00:02:59,200 Speaker 2: of the news and the only takeaway from that was 51 00:02:59,240 --> 00:03:02,480 Speaker 2: that retail piled in at the numbers and the big 52 00:03:02,480 --> 00:03:07,200 Speaker 2: money faded the rally, and so that made me very suspicious. 53 00:03:08,280 --> 00:03:11,280 Speaker 2: And then I caught wind of a tweet from Samantha 54 00:03:11,320 --> 00:03:14,760 Speaker 2: La Duke, who is the founder and chief investment officer 55 00:03:14,760 --> 00:03:19,600 Speaker 2: of LaDuke Trading. She posted a Twitter thread describing how 56 00:03:19,800 --> 00:03:23,880 Speaker 2: most of this magnificent performance of in Vidia's quarter was 57 00:03:23,960 --> 00:03:26,280 Speaker 2: driven by one of their customers, a company I had 58 00:03:26,320 --> 00:03:30,640 Speaker 2: never heard of called core Weave, and in particular, core 59 00:03:30,720 --> 00:03:34,280 Speaker 2: Weave had just placed a massive order for these new 60 00:03:34,440 --> 00:03:38,400 Speaker 2: h one hundred GPUs in videos amazing technology, and it 61 00:03:38,440 --> 00:03:41,880 Speaker 2: is amazing technology, you know, through this whole narrative here, 62 00:03:42,400 --> 00:03:45,000 Speaker 2: don't mistake this for me doubting in videas tech. The 63 00:03:45,080 --> 00:03:49,160 Speaker 2: tech is amazing, that doesn't mean the business practices are though, 64 00:03:50,200 --> 00:03:54,320 Speaker 2: and this company, core Weave was really the big driver. 65 00:03:54,440 --> 00:03:56,880 Speaker 2: They had just taken out a two point three billion 66 00:03:56,920 --> 00:04:00,520 Speaker 2: dollar line of credit, and they took that two point 67 00:04:00,520 --> 00:04:02,280 Speaker 2: three billion dollar line of credit and they bought two 68 00:04:02,320 --> 00:04:06,640 Speaker 2: point three billion dollars worth of Nvidia GPUs And coincidentally, 69 00:04:06,720 --> 00:04:10,080 Speaker 2: that two point three billion dollars was the exact number 70 00:04:10,760 --> 00:04:14,560 Speaker 2: of the beat in data centers for Nvidia. So really 71 00:04:14,880 --> 00:04:19,400 Speaker 2: all of Nvidia's growth was from this one company, core Weef. 72 00:04:20,279 --> 00:04:22,320 Speaker 2: And that's when I started to go down this rabbit 73 00:04:22,360 --> 00:04:26,560 Speaker 2: hole of the company, the people behind the company, the 74 00:04:26,640 --> 00:04:29,320 Speaker 2: other companies involved, where their money was coming from, some 75 00:04:29,400 --> 00:04:33,119 Speaker 2: of Nvidia's history, and every time I turned on turned 76 00:04:33,160 --> 00:04:36,920 Speaker 2: over a rock, there was just more rot and more 77 00:04:37,040 --> 00:04:41,039 Speaker 2: stink and more cockroaches scurrying, and it really this rabbit 78 00:04:41,080 --> 00:04:42,919 Speaker 2: hole goes deep. Joe, I am going to try to 79 00:04:42,920 --> 00:04:46,200 Speaker 2: be as efficient with my words as possible here, because 80 00:04:46,240 --> 00:04:48,599 Speaker 2: this story does go deep. But I promise you there 81 00:04:48,760 --> 00:04:50,440 Speaker 2: is so much here you're going to want to hear 82 00:04:50,480 --> 00:04:51,080 Speaker 2: every word of this. 83 00:04:51,760 --> 00:04:55,160 Speaker 1: All right, Well, I'm excited for anybody who's been following 84 00:04:55,760 --> 00:05:00,679 Speaker 1: this podcast and my YouTube channel for a while knows, 85 00:05:00,839 --> 00:05:03,440 Speaker 1: and but I do need to make the disclosure right 86 00:05:03,480 --> 00:05:06,479 Speaker 1: here that as of the time of this recording I 87 00:05:06,600 --> 00:05:10,040 Speaker 1: do have a a short position on both the S 88 00:05:10,080 --> 00:05:14,320 Speaker 1: and P five hundred and in video and so uh 89 00:05:14,520 --> 00:05:18,520 Speaker 1: and so take take that uh uh for what it's worth. 90 00:05:20,279 --> 00:05:24,560 Speaker 1: And so I personally am very excited to dive into 91 00:05:24,600 --> 00:05:29,400 Speaker 1: this because I started seeing you talk about about this, 92 00:05:29,600 --> 00:05:32,000 Speaker 1: like as you mentioned once, you started kind of turning 93 00:05:32,000 --> 00:05:33,640 Speaker 1: over the rocks and discovering things. 94 00:05:33,640 --> 00:05:34,520 Speaker 2: So I was just like, you know. 95 00:05:34,480 --> 00:05:37,039 Speaker 1: What, we've gotta We've got to have you on the 96 00:05:37,040 --> 00:05:41,400 Speaker 1: show to hammer this out. So let's let's start at 97 00:05:42,279 --> 00:05:47,520 Speaker 1: Let's start at the beginning chronologically with uh, just in 98 00:05:47,680 --> 00:05:52,840 Speaker 1: video the history of how they've you know, maybe fudge 99 00:05:52,880 --> 00:05:54,719 Speaker 1: the numbers a little bit here and there, just so 100 00:05:54,760 --> 00:05:57,760 Speaker 1: we can see how far back some of this, uh 101 00:05:57,760 --> 00:06:00,680 Speaker 1: these practices go to boost their their stock price. 102 00:06:02,160 --> 00:06:04,960 Speaker 2: So right now I'm actually looking at a press release 103 00:06:05,000 --> 00:06:10,520 Speaker 2: from the SEC dated May six, twenty twenty two. The 104 00:06:10,560 --> 00:06:14,279 Speaker 2: SEC charges in Vidia Corporation with inadequate disclosures about the 105 00:06:14,320 --> 00:06:18,520 Speaker 2: impact of crypto mining. It turns out, in twenty eighteen, 106 00:06:19,560 --> 00:06:25,159 Speaker 2: during the last crypto bubble, Jensen Huang, the CEO of Nvidia, 107 00:06:26,200 --> 00:06:30,479 Speaker 2: withheld vital information about how much of Nvidia's business was 108 00:06:30,880 --> 00:06:35,560 Speaker 2: dependent on crypto mining. Right, these Nvidia GPUs were selling 109 00:06:35,600 --> 00:06:38,880 Speaker 2: like crazy, and all of those earnings were being reported 110 00:06:38,960 --> 00:06:42,200 Speaker 2: in their gaming business on all their quarterly and their 111 00:06:42,240 --> 00:06:45,160 Speaker 2: annual reports, and these numbers were fantastic in Nvidia was 112 00:06:45,200 --> 00:06:49,360 Speaker 2: a big growth story in twenty eighteen, and Jensen Wang 113 00:06:49,440 --> 00:06:53,320 Speaker 2: was fined by the SEC because he withheld information that 114 00:06:53,440 --> 00:06:57,520 Speaker 2: most of those Nvidia GPUs were being sold to crypto miners, 115 00:06:58,160 --> 00:07:02,160 Speaker 2: and that was vital information for his investors because, as 116 00:07:02,240 --> 00:07:05,080 Speaker 2: you know, in twenty eighteen, crypto didn't do so well. 117 00:07:06,240 --> 00:07:09,720 Speaker 2: That was the end of the prior having cycle, and Bitcoin, 118 00:07:09,800 --> 00:07:13,320 Speaker 2: along with all the other cryptos, started to crash and 119 00:07:13,400 --> 00:07:17,880 Speaker 2: with it crashed invidious earnings, and Jensen Wong withheld information 120 00:07:17,960 --> 00:07:20,800 Speaker 2: from his investors about how dependent on crypto minors his 121 00:07:20,880 --> 00:07:23,360 Speaker 2: business was, and his investors paid the price for that. 122 00:07:24,320 --> 00:07:29,040 Speaker 2: So the SEC, in typical SEC fashion, Jensen Wong wrote 123 00:07:29,080 --> 00:07:31,360 Speaker 2: him a check five and a half million dollars and 124 00:07:31,400 --> 00:07:35,760 Speaker 2: they settled without any admission of wrongdoing, and so we 125 00:07:35,880 --> 00:07:39,320 Speaker 2: basically got away with it. This was that was the 126 00:07:39,360 --> 00:07:45,520 Speaker 2: first one. What was the date on that, This was 127 00:07:45,680 --> 00:07:50,840 Speaker 2: May sixth of twenty twenty two. Last year it was. 128 00:07:50,960 --> 00:07:55,320 Speaker 2: It was based on events that took place in twenty eighteen, okay, and. 129 00:07:55,280 --> 00:07:57,320 Speaker 1: In twenty eighteen, for those of you who are not 130 00:07:57,920 --> 00:08:02,240 Speaker 1: looking at a chart. In October of twenty eighteen, the 131 00:08:02,960 --> 00:08:05,840 Speaker 1: stock price in Video stock price peaked out at just 132 00:08:05,880 --> 00:08:08,960 Speaker 1: about seventy three dollars per share. That was in October. 133 00:08:09,120 --> 00:08:12,200 Speaker 1: By the end of the year it had crashed all 134 00:08:12,240 --> 00:08:15,520 Speaker 1: the way to like thirty one thirty two dollars per share, 135 00:08:15,600 --> 00:08:20,080 Speaker 1: so fifty percent just about decline in the stock price 136 00:08:20,680 --> 00:08:25,360 Speaker 1: as a result of that. So, as you said, investors 137 00:08:25,520 --> 00:08:28,880 Speaker 1: paid the price. This wasn't the first time, though, that 138 00:08:28,920 --> 00:08:32,199 Speaker 1: they had done something like this under his leadership. 139 00:08:33,280 --> 00:08:38,480 Speaker 2: That's correct. It turns out I found another SEC filing 140 00:08:38,760 --> 00:08:42,480 Speaker 2: and somebody responded to I can't remember the individual on Twitter. 141 00:08:42,520 --> 00:08:44,280 Speaker 2: I'd give them credit, but somebody sent this to me 142 00:08:44,440 --> 00:08:47,560 Speaker 2: just today in response to one of my Twitter videos 143 00:08:48,200 --> 00:08:51,760 Speaker 2: about Core. We've that all the way back in two thousand, 144 00:08:51,800 --> 00:08:53,760 Speaker 2: which I didn't even know when Video's history goes back 145 00:08:53,760 --> 00:08:55,840 Speaker 2: that far. Nobody had ever heard of them. In two thousand, 146 00:08:57,080 --> 00:09:01,840 Speaker 2: the cfo's name was Christine Hoberg, and I'm looking here 147 00:09:01,960 --> 00:09:05,720 Speaker 2: at a SEC filing that's dated September eleventh, two thousand 148 00:09:05,760 --> 00:09:12,600 Speaker 2: and three, and they are accusing the CFO of in Nvidia, 149 00:09:12,880 --> 00:09:15,319 Speaker 2: which at the time was still you know, Jensen Wong founded. 150 00:09:15,360 --> 00:09:17,040 Speaker 2: He's been the CEO the whole time. So this was 151 00:09:17,080 --> 00:09:22,679 Speaker 2: on Jensen Wang's watch that she made materially false statements 152 00:09:22,800 --> 00:09:27,960 Speaker 2: in in Vidia's quarterly earnings, that in particular, she purposely 153 00:09:28,000 --> 00:09:31,520 Speaker 2: failed to record three point three million dollars in expenses 154 00:09:32,120 --> 00:09:35,880 Speaker 2: related to a deal with suppliers. And what happened was 155 00:09:36,400 --> 00:09:40,240 Speaker 2: Christine Hoberg, then CFO of Nvidia, cut this deal with 156 00:09:40,280 --> 00:09:44,839 Speaker 2: one of her suppliers where they would undercharge in Vidia 157 00:09:44,880 --> 00:09:48,360 Speaker 2: for some of their product, and then they cut a 158 00:09:48,480 --> 00:09:51,680 Speaker 2: separate deal in a second document that said the vendor 159 00:09:51,760 --> 00:09:55,000 Speaker 2: would recoup that investment by overcharging in a following quarter. 160 00:09:56,200 --> 00:09:59,720 Speaker 2: And this resulted in a fifteen percent is actually fifteen 161 00:09:59,720 --> 00:10:03,680 Speaker 2: points three percent overstatement of Nvidia's earnings on that quarterly report. 162 00:10:05,280 --> 00:10:09,640 Speaker 2: And she furthermore, she withheld the second document that said 163 00:10:09,840 --> 00:10:12,000 Speaker 2: the vendor is going to overcharge us next quarter to 164 00:10:12,040 --> 00:10:16,160 Speaker 2: recover their investment. She purposely created two different documents, two 165 00:10:16,160 --> 00:10:20,000 Speaker 2: different agreements, and withheld the agreement about overpaying later from 166 00:10:20,000 --> 00:10:23,560 Speaker 2: their independent auditors, because obviously their independent order would have 167 00:10:23,559 --> 00:10:26,600 Speaker 2: flagged that and said you can't do that, that's illegal. 168 00:10:26,679 --> 00:10:30,240 Speaker 2: So she hid that document from them and once again 169 00:10:30,320 --> 00:10:34,120 Speaker 2: settled with the SEC admitting no wrongdoing. But she paid 170 00:10:34,160 --> 00:10:37,360 Speaker 2: six hundred and seventy one thousand dollars. That's a pretty 171 00:10:37,400 --> 00:10:43,680 Speaker 2: expensive not wrongdoing admission there. And what we have here 172 00:10:43,800 --> 00:10:48,640 Speaker 2: is two examples of Nvidia either withholding vital information, if 173 00:10:48,679 --> 00:10:52,720 Speaker 2: not outright making materially false statements to their investors for 174 00:10:52,840 --> 00:10:56,559 Speaker 2: the sake of maintaining a growth narrative in their quarterly 175 00:10:56,600 --> 00:10:59,720 Speaker 2: earnings report. And this is not a theory. These are 176 00:10:59,720 --> 00:11:01,640 Speaker 2: doctors documented. You know, I just sent you the links. 177 00:11:01,679 --> 00:11:06,720 Speaker 2: Anybody can go check these. They're out there. So that's 178 00:11:06,720 --> 00:11:09,960 Speaker 2: in Vidia's history, not a squeaky clean company. And you know, 179 00:11:10,000 --> 00:11:12,959 Speaker 2: I've heard the criticism that Jensen Huang run he runs 180 00:11:12,960 --> 00:11:16,360 Speaker 2: his company like a hedge fund. So there's a pretty 181 00:11:16,360 --> 00:11:20,840 Speaker 2: good example of Nvidia doing some unclean practices when it 182 00:11:20,880 --> 00:11:21,640 Speaker 2: comes to their books. 183 00:11:22,240 --> 00:11:26,280 Speaker 1: Now, so we've got two examples historically a little bit 184 00:11:26,440 --> 00:11:30,760 Speaker 1: spread apart, but still under the same leadership. As far 185 00:11:30,800 --> 00:11:34,480 Speaker 1: as employee compensation goes, I know that it's extremely important 186 00:11:34,520 --> 00:11:37,520 Speaker 1: that their stock price continues to grow because the way 187 00:11:37,520 --> 00:11:40,200 Speaker 1: that their stock options work, they do have the capability 188 00:11:40,280 --> 00:11:49,679 Speaker 1: to basically backdate the cost, so they can they can 189 00:11:49,840 --> 00:11:53,920 Speaker 1: increase their compensation if the stock price continues to climb. 190 00:11:54,480 --> 00:11:59,960 Speaker 1: And so it's a kind of a system wide incentive 191 00:12:00,800 --> 00:12:03,240 Speaker 1: to have that stock price continue to go up based 192 00:12:03,280 --> 00:12:06,839 Speaker 1: on internal compensation and how their stock options are are 193 00:12:06,880 --> 00:12:11,600 Speaker 1: set up. What's going on right now, So so you 194 00:12:11,640 --> 00:12:13,480 Speaker 1: alluded to it at the beginning. Let's get into a 195 00:12:13,480 --> 00:12:18,520 Speaker 1: little bit just the Nvidia side. First they beat. It's 196 00:12:18,600 --> 00:12:21,560 Speaker 1: keeping the market up what the stock price did, and 197 00:12:21,559 --> 00:12:23,000 Speaker 1: then we'll get into the other companies. 198 00:12:24,200 --> 00:12:27,160 Speaker 2: So you have to understand in Video's share right now, 199 00:12:28,080 --> 00:12:30,760 Speaker 2: the stock is being driven by the growth. It's not 200 00:12:30,800 --> 00:12:33,199 Speaker 2: being driven by how awesome the tech is. All right, 201 00:12:33,200 --> 00:12:35,439 Speaker 2: And that's the biggest criticism I've seen of my work 202 00:12:35,480 --> 00:12:38,400 Speaker 2: recently is people saying you just don't get the science. Okay, Boomer, 203 00:12:39,280 --> 00:12:41,880 Speaker 2: I'm not arguing that the chips aren't awesome. I produce 204 00:12:41,920 --> 00:12:44,480 Speaker 2: my videos on an in videographics card. Okay, the tech 205 00:12:44,559 --> 00:12:48,600 Speaker 2: is awesome. It's the business, it's the growth narrative and 206 00:12:48,640 --> 00:12:51,360 Speaker 2: in videos trading it's something like thirty eight times sales 207 00:12:51,480 --> 00:12:56,920 Speaker 2: right now. Obscene, guys, this is quadruple the peak of 208 00:12:57,000 --> 00:13:00,199 Speaker 2: the dot com bubble. Right. You know that famous quote 209 00:13:00,240 --> 00:13:04,040 Speaker 2: from the Sun Microsystems CEO, what were you thinking when 210 00:13:04,360 --> 00:13:06,720 Speaker 2: you gave me a ten time sales valuation? And he 211 00:13:06,760 --> 00:13:08,640 Speaker 2: goes on, you know, I could go ten years without 212 00:13:08,679 --> 00:13:11,520 Speaker 2: paying any expenses, any taxes, any anything, and I still 213 00:13:11,520 --> 00:13:13,040 Speaker 2: it would take me ten years to pay you back 214 00:13:13,080 --> 00:13:16,480 Speaker 2: at that rate. What were you thinking? Nvidia is almost forty, 215 00:13:17,240 --> 00:13:20,920 Speaker 2: So if ten was crazy, forty is obscene. Now that 216 00:13:21,040 --> 00:13:23,200 Speaker 2: also means that in Nvidia needs to maintain this growth 217 00:13:23,240 --> 00:13:26,840 Speaker 2: story at all costs. The second the growth even slows 218 00:13:26,880 --> 00:13:29,400 Speaker 2: a little bit, this thing is coming back down to 219 00:13:29,400 --> 00:13:31,320 Speaker 2: earth in a big way, and it's bringing the whole 220 00:13:31,360 --> 00:13:35,600 Speaker 2: market with it. And what I see in this most 221 00:13:35,640 --> 00:13:38,920 Speaker 2: recent quarter is a last minute edition of two point 222 00:13:38,960 --> 00:13:43,120 Speaker 2: three billion dollars of money from this company core weave 223 00:13:43,200 --> 00:13:47,080 Speaker 2: that nobody has ever heard of, that the source of 224 00:13:47,080 --> 00:13:50,640 Speaker 2: that money is highly suspicious, and the people behind this 225 00:13:50,760 --> 00:13:55,480 Speaker 2: company are highly suspicious. And these two this company and 226 00:13:55,520 --> 00:13:58,079 Speaker 2: the people giving them the money, are propping up the 227 00:13:58,120 --> 00:14:00,360 Speaker 2: stock value of a company that has a history of 228 00:14:00,400 --> 00:14:02,959 Speaker 2: making false statements and doing some shady deals to inflate 229 00:14:03,000 --> 00:14:06,000 Speaker 2: their stock price, and considering what's riding on this, I 230 00:14:06,040 --> 00:14:07,320 Speaker 2: decided to start looking at it. 231 00:14:08,320 --> 00:14:11,280 Speaker 1: Yeah, so it's worth mentioning as well because we'll hit 232 00:14:11,320 --> 00:14:15,760 Speaker 1: on this later that basically the valuation of the major 233 00:14:15,800 --> 00:14:21,680 Speaker 1: indexes is being held up almost purely by and video 234 00:14:21,800 --> 00:14:28,520 Speaker 1: right now. Without that, you would not have indexes where 235 00:14:28,520 --> 00:14:28,920 Speaker 1: they're at. 236 00:14:29,520 --> 00:14:34,360 Speaker 2: Yeah, you know, my background is nuclear power. I spent 237 00:14:34,440 --> 00:14:36,960 Speaker 2: fifteen years working at commercial nuclear power plants. I should 238 00:14:37,040 --> 00:14:40,440 Speaker 2: just close that I'm not a finance guy by pedigree, 239 00:14:41,040 --> 00:14:43,000 Speaker 2: but when I used to work in nuclear power, we 240 00:14:43,000 --> 00:14:45,120 Speaker 2: were always on the lookout for what was referred to 241 00:14:45,160 --> 00:14:49,480 Speaker 2: as a single point vulnerability. Right. Nuclear power uses defense 242 00:14:49,680 --> 00:14:52,480 Speaker 2: in depths. We have multiple barriers to protect the public 243 00:14:52,520 --> 00:14:55,720 Speaker 2: from radioactive materials, multiple fail safes, fail safes for the 244 00:14:55,720 --> 00:14:58,400 Speaker 2: fail safes, fail safes for them, and we're always on 245 00:14:58,440 --> 00:15:01,040 Speaker 2: the lookout for a single point vault moerability. Is there 246 00:15:01,080 --> 00:15:04,760 Speaker 2: one component that could break and you lose your backup 247 00:15:04,760 --> 00:15:07,120 Speaker 2: and your backup and your backup and your backup. So 248 00:15:07,360 --> 00:15:10,200 Speaker 2: we're taught to seek those out and limit them, eliminate them. 249 00:15:10,200 --> 00:15:12,600 Speaker 2: And right now, in Vidia is a single point vulnerability 250 00:15:12,640 --> 00:15:15,240 Speaker 2: for the whole market. Right, it is one company that 251 00:15:15,400 --> 00:15:18,560 Speaker 2: any flaw in the Nvidia narrative, the whole market comes 252 00:15:18,560 --> 00:15:20,640 Speaker 2: down with it. And I found a lot of flaws 253 00:15:20,640 --> 00:15:23,080 Speaker 2: in the Nvidia narrative, and the press is not covering it. 254 00:15:23,480 --> 00:15:26,960 Speaker 2: The press is writing puff pieces about this core Weave company. 255 00:15:27,640 --> 00:15:30,800 Speaker 2: And the time to ask questions is when the number 256 00:15:30,840 --> 00:15:33,160 Speaker 2: is going up, not after the number has gone down. 257 00:15:33,160 --> 00:15:36,400 Speaker 2: And everybody's saying, how could this happen? And so I 258 00:15:36,440 --> 00:15:39,000 Speaker 2: want to just zero in on that two point three 259 00:15:39,000 --> 00:15:41,920 Speaker 2: billion dollar line of credit that drove these Nvidia earnings, 260 00:15:42,000 --> 00:15:45,360 Speaker 2: because it was this company, Core Weave, that got this 261 00:15:45,400 --> 00:15:47,960 Speaker 2: two point three billion dollar line of credit credit. First 262 00:15:47,960 --> 00:15:50,720 Speaker 2: of all, that is the entire market cap at the 263 00:15:50,760 --> 00:15:56,200 Speaker 2: time of Core Weave. So somebody loaned them their entire valuation. 264 00:15:57,080 --> 00:16:02,240 Speaker 1: Are these public company? No, okay, it was loaned to 265 00:16:02,280 --> 00:16:03,080 Speaker 1: them by. 266 00:16:04,640 --> 00:16:07,560 Speaker 2: Magnetar Capital was the leader of this round, but also 267 00:16:07,640 --> 00:16:10,120 Speaker 2: Blackstone was played a major role in that. Blackstone has 268 00:16:10,160 --> 00:16:15,480 Speaker 2: a ownership stake in Magnetar Capital. Other players included black Rock, Carlisle, Pimco. 269 00:16:16,560 --> 00:16:18,480 Speaker 2: There was a couple other smaller players in there, but 270 00:16:19,520 --> 00:16:21,760 Speaker 2: the big dogs of Wall Street all got together and 271 00:16:21,840 --> 00:16:23,840 Speaker 2: loan Core. We have two point three billion dollars and 272 00:16:23,880 --> 00:16:26,040 Speaker 2: Core We've turned around and gave that money right to Nvidia, 273 00:16:26,560 --> 00:16:29,400 Speaker 2: and that resulted in that big earnings beat. And the 274 00:16:29,400 --> 00:16:32,840 Speaker 2: connection that Samantha LaDuke made is, Hey, all these people 275 00:16:32,880 --> 00:16:34,920 Speaker 2: who are giving this money to Core Weave for the 276 00:16:34,920 --> 00:16:38,400 Speaker 2: purpose of driving in Nvidia sales higher, they're all major 277 00:16:38,440 --> 00:16:42,840 Speaker 2: stakeholders in Nvidia. So take that eleven percent rally in 278 00:16:42,960 --> 00:16:47,480 Speaker 2: Nvidia's share price after hours, these companies made that two 279 00:16:47,520 --> 00:16:50,840 Speaker 2: point three billion dollars back. If they sell, if they 280 00:16:50,880 --> 00:16:53,480 Speaker 2: sold a small portion of their position after hours or 281 00:16:53,600 --> 00:16:56,160 Speaker 2: at opening bell the next day, which you know that 282 00:16:56,280 --> 00:16:59,480 Speaker 2: rally after earnings faded that day, then they could have 283 00:16:59,520 --> 00:17:01,840 Speaker 2: recovered that the whole two point three billion dollar investment 284 00:17:01,880 --> 00:17:05,800 Speaker 2: and then some just by selling that rally after the 285 00:17:05,840 --> 00:17:10,560 Speaker 2: earnings were announced. And there was more smelly things about 286 00:17:10,560 --> 00:17:13,399 Speaker 2: that two point three billion line of credit, like the 287 00:17:13,440 --> 00:17:16,159 Speaker 2: fact that it was collateralized by the very chips that 288 00:17:16,200 --> 00:17:16,840 Speaker 2: they bought with it. 289 00:17:17,720 --> 00:17:21,160 Speaker 1: So magnatarin Code, we gotta pause there because I'm gonna 290 00:17:21,200 --> 00:17:23,440 Speaker 1: need I'm gonna need to focus on that. So just 291 00:17:23,960 --> 00:17:26,520 Speaker 1: to make sure that I have I have this story 292 00:17:26,560 --> 00:17:31,879 Speaker 1: straight so far, in Vidia flies up after hours because 293 00:17:31,920 --> 00:17:35,240 Speaker 1: they report a beat the amount that they beat by 294 00:17:35,560 --> 00:17:39,359 Speaker 1: two point three billion dollars. Turns out that was all 295 00:17:39,720 --> 00:17:44,400 Speaker 1: a purchase order from one company, Core Weave, who will 296 00:17:44,440 --> 00:17:47,040 Speaker 1: get into But nobody's ever heard of these guys before. 297 00:17:47,119 --> 00:17:49,560 Speaker 1: Suddenly they have two point three billion dollars to make 298 00:17:49,560 --> 00:17:54,040 Speaker 1: a big purchase from Nvidia. Where did they get that money? Well, 299 00:17:54,080 --> 00:17:58,199 Speaker 1: it wasn't from earnings, it wasn't from revenue. It was 300 00:17:58,720 --> 00:18:04,760 Speaker 1: a pile of loans. And these loans came from companies 301 00:18:04,800 --> 00:18:11,440 Speaker 1: like Magnetar, Blackstone, black Rock, Pimco, and these guys, especially Magnetar, 302 00:18:12,320 --> 00:18:14,640 Speaker 1: are major shareholders of Nvidia. 303 00:18:16,600 --> 00:18:19,240 Speaker 2: I don't know if Magnetar is a major shareholder of Invidio. 304 00:18:19,280 --> 00:18:20,919 Speaker 2: I don't know that the rest of them are. Okay, 305 00:18:21,040 --> 00:18:22,080 Speaker 2: the rest of them are. Yeah. 306 00:18:22,960 --> 00:18:26,880 Speaker 1: Of that two point three billion dollar loan, that that 307 00:18:26,960 --> 00:18:29,240 Speaker 1: line of credit, how much of that came from Magnetar. 308 00:18:31,800 --> 00:18:35,359 Speaker 2: They didn't break out that specifics of it. Okay, it 309 00:18:35,440 --> 00:18:39,119 Speaker 2: was led by Magnetar, And I can't give you Magnetar 310 00:18:39,240 --> 00:18:43,560 Speaker 2: until recently, right until recently, it was almost all Magnetar. Yes, 311 00:18:43,760 --> 00:18:45,680 Speaker 2: And I can take it through the timeline of core 312 00:18:45,720 --> 00:18:47,560 Speaker 2: Weave's capital raise if you want. 313 00:18:49,080 --> 00:18:50,800 Speaker 1: I think we should get into that in a minute. 314 00:18:50,840 --> 00:18:51,360 Speaker 2: So all right. 315 00:18:51,480 --> 00:18:55,240 Speaker 1: So, so basically in Video is flying up because they 316 00:18:55,240 --> 00:18:58,240 Speaker 1: get a bunch of purchase orders, but it's coming from 317 00:18:58,600 --> 00:19:03,000 Speaker 1: money that was loaned through, you know, from people who 318 00:19:03,040 --> 00:19:06,680 Speaker 1: were invested in the company, meaning that they they could 319 00:19:06,720 --> 00:19:11,720 Speaker 1: just sell and Video shares after hours to pay for 320 00:19:11,760 --> 00:19:17,280 Speaker 1: the cost of that of that loan. Okay, if allegedly, 321 00:19:17,359 --> 00:19:19,600 Speaker 1: if you know, because obviously we don't know, we can't 322 00:19:19,680 --> 00:19:22,800 Speaker 1: see who was selling those shares. From a technical perspective, 323 00:19:22,800 --> 00:19:26,080 Speaker 1: it does look like, uh, the market didn't believe the 324 00:19:26,200 --> 00:19:28,560 Speaker 1: rally that big money sold. As soon as it pops, 325 00:19:28,760 --> 00:19:30,879 Speaker 1: it has retested to try and get back above it 326 00:19:30,920 --> 00:19:34,280 Speaker 1: failed again. So it looks like the big big money 327 00:19:34,320 --> 00:19:37,520 Speaker 1: doesn't doesn't believe this thing has what it takes to 328 00:19:37,520 --> 00:19:38,439 Speaker 1: to keep on going. 329 00:19:38,880 --> 00:19:41,760 Speaker 2: It looks like retail bought the earnings and big money 330 00:19:41,760 --> 00:19:44,040 Speaker 2: sold it. Yep, Okay, keep that in mind. 331 00:19:44,440 --> 00:19:49,600 Speaker 1: Okay, So before I cut you off, you were just 332 00:19:50,000 --> 00:19:54,840 Speaker 1: about to start talking about Shoot, I thought I wrote 333 00:19:54,840 --> 00:19:57,840 Speaker 1: it down you You were about to head into the collateral. 334 00:19:59,320 --> 00:20:03,080 Speaker 1: The collateral, right, Okay, So what do you mean by that? 335 00:20:03,240 --> 00:20:05,360 Speaker 1: The chips are the collateral for the loan. 336 00:20:06,200 --> 00:20:10,080 Speaker 2: Yes, the loan was made to core Weave by Magnetar 337 00:20:10,240 --> 00:20:13,480 Speaker 2: and Blackstone and black Rock and the other guys. The 338 00:20:13,600 --> 00:20:16,520 Speaker 2: loan was made to core Weave. It was collateralized by 339 00:20:16,560 --> 00:20:21,280 Speaker 2: the chips that they bought with that loan, Right, I 340 00:20:21,320 --> 00:20:23,639 Speaker 2: guess it's not heard of. Your mortgage is the same way. Right, 341 00:20:23,720 --> 00:20:26,560 Speaker 2: you take out a loan, you buy a house, The 342 00:20:26,640 --> 00:20:30,720 Speaker 2: loan is collateralized by the house that you're buying. Although 343 00:20:30,760 --> 00:20:32,800 Speaker 2: you know, you usually put money down, you have to 344 00:20:32,840 --> 00:20:35,080 Speaker 2: buy insurance on it and all kinds of things. In 345 00:20:35,160 --> 00:20:39,080 Speaker 2: this case, though, they lent core Weave the entire valuation 346 00:20:39,240 --> 00:20:42,119 Speaker 2: of their company two point three billion dollars, and then 347 00:20:42,160 --> 00:20:45,240 Speaker 2: they collateralized it with these circuit boards, these GPUs that 348 00:20:45,280 --> 00:20:50,919 Speaker 2: they're buying. Now, think about the upgrade cycle of computer technology. 349 00:20:51,840 --> 00:20:55,359 Speaker 2: Circuit boards do not hold their value. So that's fishy 350 00:20:55,480 --> 00:20:58,600 Speaker 2: to say the least, that they would collateralize a two 351 00:20:58,600 --> 00:21:02,040 Speaker 2: point three billion dollar line of credit with the circuit 352 00:21:02,080 --> 00:21:04,159 Speaker 2: boards that they were buying something that what do they 353 00:21:04,200 --> 00:21:06,440 Speaker 2: have maybe a year to make that money back, maybe 354 00:21:06,480 --> 00:21:13,280 Speaker 2: two tops before These are near worthless assets. So right 355 00:21:13,320 --> 00:21:16,760 Speaker 2: away this thing doesn't smell right. The circular accounting. You've 356 00:21:16,760 --> 00:21:19,399 Speaker 2: got major shareholders loaning money to a company for the 357 00:21:19,440 --> 00:21:23,000 Speaker 2: purpose of them turning around and buying product from a 358 00:21:23,080 --> 00:21:27,359 Speaker 2: company that you know, the loaner owns shares of the 359 00:21:27,440 --> 00:21:31,280 Speaker 2: company collateralized by the chips that they're buying. This is 360 00:21:31,359 --> 00:21:34,119 Speaker 2: circular accounting, is what it looks like. 361 00:21:34,920 --> 00:21:39,800 Speaker 1: So if if for some reason they are forced to, 362 00:21:42,920 --> 00:21:45,200 Speaker 1: you know, try and liquidate the collateral to get paid 363 00:21:45,240 --> 00:21:47,639 Speaker 1: back for the loan, if it takes longer than a 364 00:21:47,760 --> 00:21:50,360 Speaker 1: year or two, the collateral is worthless. 365 00:21:51,320 --> 00:21:54,760 Speaker 2: So that's what I'll say. It's worthless. Maybe it's not worthless, 366 00:21:55,600 --> 00:21:59,800 Speaker 2: but this stuff is going to bleed value pretty quick. Sure, Okay, 367 00:22:02,040 --> 00:22:05,760 Speaker 2: all right, So who is who is Core Weave? What 368 00:22:05,880 --> 00:22:11,159 Speaker 2: are they doing with these chips? And where did they 369 00:22:11,200 --> 00:22:13,239 Speaker 2: come from? What have they been what have they been 370 00:22:13,280 --> 00:22:18,240 Speaker 2: doing this whole time? So Core Weave their business model. 371 00:22:18,280 --> 00:22:21,240 Speaker 2: They don't own any technology, they don't own any intellectual property. 372 00:22:21,480 --> 00:22:24,639 Speaker 2: There's nothing unique about their business model. They buy chips 373 00:22:24,920 --> 00:22:28,760 Speaker 2: from Nvidia and then they build data centers warehouse full 374 00:22:28,840 --> 00:22:32,880 Speaker 2: of these GPUs and their plan is to rent out 375 00:22:32,920 --> 00:22:37,600 Speaker 2: the computing power to provide. They look at it as 376 00:22:37,720 --> 00:22:41,320 Speaker 2: like the plumbing, the electricity, the grid. For artificial intelligence, 377 00:22:41,359 --> 00:22:43,200 Speaker 2: all these AI companies are going to have to rent 378 00:22:43,240 --> 00:22:47,480 Speaker 2: the computing power from core Weave, so that business model 379 00:22:48,840 --> 00:22:52,520 Speaker 2: resembles a real estate investment trust more than anything. Right, 380 00:22:53,000 --> 00:22:55,119 Speaker 2: they don't have any IP, there's nothing special about them. 381 00:22:55,160 --> 00:22:58,040 Speaker 2: The only thing special about core Weave is that Magnetar 382 00:22:58,080 --> 00:23:00,320 Speaker 2: will give them money and Nvidia will let them buy 383 00:23:00,320 --> 00:23:03,360 Speaker 2: their chips. Right, Microsoft would buy in Vidious chips, anybody 384 00:23:03,359 --> 00:23:05,560 Speaker 2: would buy in Vidious chips. But for whatever reason, whatever 385 00:23:05,600 --> 00:23:08,080 Speaker 2: reason in Video will sell them to core Weave mostly. 386 00:23:09,760 --> 00:23:12,119 Speaker 1: So why when you say that, is that the just 387 00:23:12,520 --> 00:23:14,560 Speaker 1: they can only produce a certain amount and they're selling 388 00:23:14,640 --> 00:23:15,720 Speaker 1: them to core Weave, or. 389 00:23:16,320 --> 00:23:19,959 Speaker 2: Is like yes, yeah, I mean the line to get 390 00:23:20,000 --> 00:23:23,200 Speaker 2: their hands on these chips is around the corner. Everybody 391 00:23:23,280 --> 00:23:26,159 Speaker 2: wants them, right, And that's one of the big criticisms 392 00:23:26,200 --> 00:23:29,520 Speaker 2: of my work, is that everybody wants them. And you 393 00:23:29,560 --> 00:23:32,080 Speaker 2: know my answer to that is, then why sell them 394 00:23:32,119 --> 00:23:36,280 Speaker 2: to these guys who are having to borrow their own 395 00:23:36,359 --> 00:23:39,080 Speaker 2: market cap collateralized by their own chips? Why are you 396 00:23:39,160 --> 00:23:41,640 Speaker 2: selling to these guys and not anybody else? 397 00:23:42,440 --> 00:23:45,000 Speaker 1: So and so that that may not even be because 398 00:23:45,000 --> 00:23:48,040 Speaker 1: they're doing anything shady with them, it's just because where 399 00:23:48,200 --> 00:23:54,200 Speaker 1: that that uh, it circulates back to back to their 400 00:23:54,240 --> 00:23:56,520 Speaker 1: share price, which is always their ultimate goal. 401 00:23:57,320 --> 00:23:59,400 Speaker 2: And it's also worth pointing out that in Video owns 402 00:23:59,440 --> 00:24:03,000 Speaker 2: a small state in core Weave. I don't know how much, 403 00:24:03,920 --> 00:24:06,840 Speaker 2: but Nvidia is a partial shareholder in core weaf. 404 00:24:07,880 --> 00:24:13,879 Speaker 1: Okay, now you you mentioned earlier their total valuation was 405 00:24:14,119 --> 00:24:16,239 Speaker 1: two point three billion dollars, which is odd because that's 406 00:24:16,240 --> 00:24:17,320 Speaker 1: the same size a line of credit. 407 00:24:17,480 --> 00:24:20,880 Speaker 2: Joe. That's that's month ago news. They're trying to sell 408 00:24:20,920 --> 00:24:23,000 Speaker 2: a stake. Core Weave is now asking for an eight 409 00:24:23,080 --> 00:24:28,160 Speaker 2: billion dollar valuation a month later, so and again reads 410 00:24:28,200 --> 00:24:31,040 Speaker 2: don't do that. There's nothing special about their business model. 411 00:24:31,480 --> 00:24:34,800 Speaker 2: So yeah, now they're asking for an eight billion dollar valuation. 412 00:24:34,920 --> 00:24:37,240 Speaker 2: They just that article hit the tape a few days ago. 413 00:24:37,400 --> 00:24:38,480 Speaker 2: But finish your thoughts. Sorry. 414 00:24:39,000 --> 00:24:43,479 Speaker 1: So, up until recently, the main investor who's been plowing 415 00:24:43,560 --> 00:24:46,840 Speaker 1: money into core Weave has been Magnetar. 416 00:24:47,520 --> 00:24:49,920 Speaker 2: Yes, and just to give you an idea of this, 417 00:24:52,119 --> 00:24:54,920 Speaker 2: core Weave has not always been core Weave. They were 418 00:24:55,040 --> 00:24:58,399 Speaker 2: founded in let me get the date right here. They 419 00:24:58,440 --> 00:25:02,120 Speaker 2: were founded September twenty first of twenty seventeen by these 420 00:25:02,160 --> 00:25:05,520 Speaker 2: three guys, Michael and Trader, Brandon McBee and Brian Venturo, 421 00:25:06,359 --> 00:25:08,080 Speaker 2: all right, and there was this a fourth player who 422 00:25:08,119 --> 00:25:09,600 Speaker 2: you'll hear about later, a guy by the name of 423 00:25:09,720 --> 00:25:13,720 Speaker 2: Jack Cogan. He's one of the board of directors. So 424 00:25:13,840 --> 00:25:16,720 Speaker 2: they were founded in September of twenty seventeen. They were 425 00:25:16,800 --> 00:25:20,719 Speaker 2: in athereum mining operation that that was what they did, 426 00:25:20,880 --> 00:25:24,040 Speaker 2: and they did that for a few years, and then 427 00:25:24,920 --> 00:25:27,200 Speaker 2: you know, they raised one point two million dollars in 428 00:25:27,359 --> 00:25:30,880 Speaker 2: twenty nineteen trying to do a cap raise. There. Good 429 00:25:30,920 --> 00:25:34,040 Speaker 2: for them. Something weird happened on October twenty eighth of 430 00:25:34,119 --> 00:25:38,880 Speaker 2: twenty twenty one. That's when Atlantic Cryptocorp filed the trademark 431 00:25:38,960 --> 00:25:42,000 Speaker 2: for the word core weave. And the date is important here, 432 00:25:42,040 --> 00:25:45,840 Speaker 2: October twenty eighth of twenty twenty one, because just two 433 00:25:45,960 --> 00:25:51,600 Speaker 2: weeks later, on November tenth of twenty twenty one, Magnetar 434 00:25:51,680 --> 00:25:56,960 Speaker 2: Capital gives them fifty million dollars. Took a fifty million 435 00:25:57,000 --> 00:25:59,399 Speaker 2: dollar stake in this outfit that two weeks ago was 436 00:25:59,480 --> 00:26:04,080 Speaker 2: just a theory minors. And then a year goes by 437 00:26:04,920 --> 00:26:09,119 Speaker 2: in November of twenty twenty two, November thirtieth, Chat GPT 438 00:26:09,280 --> 00:26:11,920 Speaker 2: is announced in AI Mania begins, all right, that's when 439 00:26:11,960 --> 00:26:16,600 Speaker 2: everything changed. A week after chat GPT gets announced on 440 00:26:16,760 --> 00:26:20,480 Speaker 2: December sixth of twenty twenty two, Magnetar gives core Weave 441 00:26:20,520 --> 00:26:26,280 Speaker 2: another one hundred million dollars. Four months later, April twentieth, 442 00:26:26,320 --> 00:26:29,840 Speaker 2: twenty twenty three, core Weave raises another two hundred and 443 00:26:29,960 --> 00:26:34,080 Speaker 2: twenty one million dollars one hundred and eleven million from Magnetar, 444 00:26:34,240 --> 00:26:37,639 Speaker 2: and the rest is split between Nvidia themselves along with 445 00:26:38,160 --> 00:26:41,560 Speaker 2: former Getthub CEO Nat Friedman and a former Apple exec 446 00:26:41,720 --> 00:26:45,000 Speaker 2: named Daniel Gross. But again Magnetar is the big player here. 447 00:26:45,200 --> 00:26:47,719 Speaker 2: Hundreds of millions coming in from Magnetar. Now we've got 448 00:26:47,760 --> 00:26:49,800 Speaker 2: in Vidia themselves taking a stake in one of their 449 00:26:49,880 --> 00:26:55,920 Speaker 2: customers a couple other guys. A month later, May thirty first, 450 00:26:56,640 --> 00:26:59,480 Speaker 2: core Weave gets another two hundred million, all from Magnetar. 451 00:27:01,080 --> 00:27:03,720 Speaker 2: And then on August third, was that fateful two point 452 00:27:03,760 --> 00:27:06,680 Speaker 2: three billion dollar line of credit, again led by Magnetar. 453 00:27:06,760 --> 00:27:08,720 Speaker 2: I don't know how much of that was Magnetar, just 454 00:27:08,760 --> 00:27:11,680 Speaker 2: that it was led by Magnetar. But for whatever reason, 455 00:27:11,840 --> 00:27:16,680 Speaker 2: Magnetar Capital keeps pumping tens of millions, hundreds of millions, 456 00:27:16,760 --> 00:27:20,080 Speaker 2: eventually billions of dollars into this company, core Weef, that 457 00:27:20,200 --> 00:27:23,840 Speaker 2: owns no intellectual property. They're just They're basically a rate. 458 00:27:25,440 --> 00:27:28,840 Speaker 2: So you know, I was sitting here putting together these videos, 459 00:27:29,080 --> 00:27:31,840 Speaker 2: and I'm saying, what is so special about core Weef? 460 00:27:32,000 --> 00:27:34,800 Speaker 2: What do they have? They have two things? And video 461 00:27:34,840 --> 00:27:39,120 Speaker 2: will let them buy chips because everybody wants some video chips. 462 00:27:39,160 --> 00:27:42,119 Speaker 2: But for whatever reason, core Weave gets them, and Magnetar 463 00:27:42,160 --> 00:27:45,280 Speaker 2: will give them money to buy those chips with. So 464 00:27:46,359 --> 00:27:49,080 Speaker 2: I go down the rabbit hole of who is Magnetar 465 00:27:50,040 --> 00:27:53,320 Speaker 2: because that seems like, now I'm why are they giving 466 00:27:53,359 --> 00:27:57,000 Speaker 2: these guys the money? Yeah, And when I learned about Magnetar, 467 00:27:57,359 --> 00:28:03,560 Speaker 2: oh boy, it's called the Magnetar trade. And that is 468 00:28:03,600 --> 00:28:05,480 Speaker 2: not a good thing. That's like having a disease named 469 00:28:05,480 --> 00:28:08,160 Speaker 2: after yourself, right, you don't want to be you don't 470 00:28:08,160 --> 00:28:09,920 Speaker 2: want there to be Joe Brown syndrome. You don't want 471 00:28:09,920 --> 00:28:11,840 Speaker 2: to be remembered for the first guy dying from some 472 00:28:12,040 --> 00:28:14,600 Speaker 2: paradise parasite, or you know, it's not a good thing. 473 00:28:14,640 --> 00:28:19,600 Speaker 2: The Magnetar trade has made famous because these guys are 474 00:28:20,359 --> 00:28:24,639 Speaker 2: the sleaziest, slimiest, most despicable people in all of Wall Street, 475 00:28:25,480 --> 00:28:28,560 Speaker 2: and I want to recall I'm assuming most of your 476 00:28:28,640 --> 00:28:31,320 Speaker 2: viewers have probably seen The Big Short. There's a memorable 477 00:28:31,320 --> 00:28:34,880 Speaker 2: scene in The Big Short where Steve Carell's character Mark Baum, 478 00:28:34,920 --> 00:28:37,760 Speaker 2: who's based on Steve Weisman in real life, He's having 479 00:28:37,840 --> 00:28:43,720 Speaker 2: dinner with this Asian gentleman, a CDO manager, and you know, 480 00:28:43,800 --> 00:28:45,720 Speaker 2: all of his buddies are in the corner watching and 481 00:28:45,720 --> 00:28:47,600 Speaker 2: they're like, oh my god, his head's going to explode, 482 00:28:47,640 --> 00:28:49,920 Speaker 2: and they're like, no, he's too, he's fascinated. He's going 483 00:28:50,000 --> 00:28:51,960 Speaker 2: to keep going. And by the end of the scene, 484 00:28:52,000 --> 00:28:54,560 Speaker 2: Steve Carell's hair is all messed up. He can't believe 485 00:28:54,640 --> 00:28:58,560 Speaker 2: what an unbelievable schmuck this guy is that he's talking 486 00:28:58,560 --> 00:29:02,120 Speaker 2: about this CDO manager. And this CDO manager was based 487 00:29:02,160 --> 00:29:04,400 Speaker 2: on a real life character by the name of wing 488 00:29:04,720 --> 00:29:09,640 Speaker 2: F Chow, and wing F Chow he worked for his 489 00:29:09,760 --> 00:29:15,000 Speaker 2: own company, but his job he assembled CDOs, collateralized debt obligations. 490 00:29:17,080 --> 00:29:18,680 Speaker 2: They do a pretty good job in the movie with 491 00:29:18,800 --> 00:29:21,680 Speaker 2: Chef Bourdain describing what a CDO is when he takes 492 00:29:21,760 --> 00:29:24,640 Speaker 2: the three day old fish at the restaurant and he 493 00:29:24,760 --> 00:29:28,400 Speaker 2: says it was yesterday's fish and you know, now, this 494 00:29:28,480 --> 00:29:30,600 Speaker 2: fish is not fresh anymore. So I'm going to cut 495 00:29:30,640 --> 00:29:32,640 Speaker 2: it into pieces and put it into a pot, and 496 00:29:32,680 --> 00:29:35,719 Speaker 2: I'm going to call it seafood bisk Right, it's all 497 00:29:35,760 --> 00:29:39,800 Speaker 2: the leftover mortgage bonds that nobody wants to buy. They're 498 00:29:39,840 --> 00:29:44,600 Speaker 2: all triple B rated crap, risky like people aren't lousy 499 00:29:44,680 --> 00:29:47,720 Speaker 2: Fico scores, ninja loans, no income, no jobs, no assets. 500 00:29:47,960 --> 00:29:49,560 Speaker 2: They put these all into a bucket. They call it 501 00:29:49,640 --> 00:29:53,840 Speaker 2: a CDO and they say it's a safe investment. So 502 00:29:53,960 --> 00:29:57,800 Speaker 2: Wing Chow was assembling these CDOs. What's that Because there's 503 00:29:57,800 --> 00:29:59,560 Speaker 2: a lot of them. Now it's safe, a whole lot 504 00:29:59,560 --> 00:30:02,920 Speaker 2: of yeah. Yeah. And this is at the height. This 505 00:30:03,040 --> 00:30:05,400 Speaker 2: is right before the GFC, So there's a lot of 506 00:30:05,480 --> 00:30:08,520 Speaker 2: this crap. So the banks. By now, the banks realize 507 00:30:08,560 --> 00:30:10,440 Speaker 2: what's going on. They need this stuff off their books, 508 00:30:11,080 --> 00:30:15,760 Speaker 2: and so they hire Wing Chow to sell these CDOs. 509 00:30:16,480 --> 00:30:19,160 Speaker 2: And what was going on was Magnetar Capital was helping 510 00:30:19,240 --> 00:30:24,160 Speaker 2: Wing Chow assemble these CDOs and they were urging Wing 511 00:30:24,320 --> 00:30:29,040 Speaker 2: Chow to put the riskiest possible mortgage bonds into these CDOs. 512 00:30:29,760 --> 00:30:34,160 Speaker 2: They wanted them to fail. They made sure these things 513 00:30:34,200 --> 00:30:37,560 Speaker 2: were the most high risk toxic sludge assets and all 514 00:30:37,600 --> 00:30:40,760 Speaker 2: the banks ballad sheets, and then they were sold to 515 00:30:40,920 --> 00:30:45,240 Speaker 2: unsuspecting investors while Magnetar was buying credit to fault swaps 516 00:30:45,240 --> 00:30:49,000 Speaker 2: on them, which means Magnetar was betting against them. So 517 00:30:49,200 --> 00:30:53,480 Speaker 2: they sabotaged investments, sold them to unsuspecting retail traders, and 518 00:30:53,600 --> 00:30:57,040 Speaker 2: made a fortune betting against them when they failed. Innocent 519 00:30:57,120 --> 00:31:02,320 Speaker 2: people lost billions. Magnetar made hundreds of millions. That's the 520 00:31:02,440 --> 00:31:06,640 Speaker 2: people who are funneling money into core Weave right now, 521 00:31:07,520 --> 00:31:10,520 Speaker 2: so core Weave can take that money and buy Nvidia chips. 522 00:31:11,720 --> 00:31:14,160 Speaker 2: So I ask you, if you're one of the guys 523 00:31:14,240 --> 00:31:16,640 Speaker 2: holding in a call option in video right now or 524 00:31:16,680 --> 00:31:18,800 Speaker 2: a share congratulations, you're up this year, You're up more 525 00:31:18,840 --> 00:31:20,960 Speaker 2: than me. Good job. I have no position in in video, 526 00:31:21,000 --> 00:31:28,040 Speaker 2: by the way, but these numbers are being driven almost 527 00:31:28,160 --> 00:31:33,240 Speaker 2: solely by a company with a history of creating sabotaged 528 00:31:33,280 --> 00:31:35,920 Speaker 2: investments and convincing retail to buy them so that they 529 00:31:35,960 --> 00:31:39,520 Speaker 2: can bet against them. That's the people that's the money 530 00:31:39,640 --> 00:31:43,000 Speaker 2: behind core Weave. Who is the money behind Nvidia's earnings beat? 531 00:31:45,160 --> 00:31:51,920 Speaker 2: So that's that's scary, especially considering how much is riding 532 00:31:52,000 --> 00:31:55,360 Speaker 2: on in video right now, the whole market, and in Nvidia, 533 00:31:55,560 --> 00:31:58,800 Speaker 2: is riding on core weave. So the whole market is 534 00:31:58,880 --> 00:32:01,880 Speaker 2: riding on core weave, and core weave is being financed 535 00:32:01,880 --> 00:32:05,000 Speaker 2: by people who sabotage investments while betting against them for 536 00:32:05,040 --> 00:32:08,000 Speaker 2: their own game. That's their history, and. 537 00:32:08,200 --> 00:32:12,560 Speaker 1: It's important, I think, to point out that a few 538 00:32:12,640 --> 00:32:15,040 Speaker 1: people got in a little bit of trouble for what 539 00:32:15,160 --> 00:32:20,120 Speaker 1: they did during the financial crisis, not these guys. And 540 00:32:20,880 --> 00:32:24,520 Speaker 1: to make it, to make it abundantly clear to the 541 00:32:25,080 --> 00:32:32,880 Speaker 1: five year olds, you are selling something to somebody that 542 00:32:33,000 --> 00:32:36,720 Speaker 1: you know is gonna catch their house on fire, and 543 00:32:36,840 --> 00:32:40,880 Speaker 1: at the same time, you're buying fire insurance on that property. 544 00:32:41,880 --> 00:32:45,200 Speaker 1: So you're making somebody pay you for something that is 545 00:32:45,280 --> 00:32:47,960 Speaker 1: gonna then turn around and make you even more money. 546 00:32:49,320 --> 00:32:51,520 Speaker 1: And there's going to be a sucker holding the bag. 547 00:32:52,840 --> 00:32:58,560 Speaker 1: And so in this circumstance to kind of weave these 548 00:32:58,760 --> 00:33:02,440 Speaker 1: threads together. And we have a company that has a 549 00:33:02,520 --> 00:33:08,360 Speaker 1: long history of somewhat shady things to try and boost 550 00:33:08,520 --> 00:33:12,320 Speaker 1: their stock price based on for a number of reasons, 551 00:33:12,400 --> 00:33:15,680 Speaker 1: maybe it's because of employee compensation, whatever, But we've got 552 00:33:15,720 --> 00:33:18,920 Speaker 1: the same leadership at the Helm they've gotten in trouble 553 00:33:19,000 --> 00:33:21,800 Speaker 1: for it in the past, and the narrative that's driving 554 00:33:21,840 --> 00:33:25,160 Speaker 1: their stock higher is a growth narrative, meaning they're they're 555 00:33:25,200 --> 00:33:27,560 Speaker 1: continuing to grow, so people are buying the stock because 556 00:33:27,560 --> 00:33:29,040 Speaker 1: they think it's going to be way bigger in the 557 00:33:29,120 --> 00:33:31,600 Speaker 1: future because you know, AI is going to take over 558 00:33:31,680 --> 00:33:35,360 Speaker 1: everything and they're just growing like crazy. So growth, that 559 00:33:35,480 --> 00:33:39,320 Speaker 1: growth narrative is essential to everybody at the HELM right now. 560 00:33:40,120 --> 00:33:43,880 Speaker 1: That growth narrative hinges on one order from a company 561 00:33:43,960 --> 00:33:48,440 Speaker 1: called core Weave, who is just kind of they're just 562 00:33:48,600 --> 00:33:52,440 Speaker 1: they're like a data center basically, and for some reason, 563 00:33:52,560 --> 00:33:55,880 Speaker 1: and Video is letting them purchase all their chips. Because 564 00:33:55,880 --> 00:33:59,400 Speaker 1: of that, core Weave is exploding in their valuation. But 565 00:34:00,360 --> 00:34:03,520 Speaker 1: that explosion in their valuation is being driven by investment 566 00:34:03,640 --> 00:34:08,080 Speaker 1: and loans from a company called Magnetar. Magnetar is this 567 00:34:08,239 --> 00:34:11,880 Speaker 1: company who has a history of, like we said earlier, 568 00:34:12,160 --> 00:34:13,839 Speaker 1: selling people things that are going to catch your house 569 00:34:13,880 --> 00:34:16,600 Speaker 1: on fire while simultaneously making large bets that the house 570 00:34:16,719 --> 00:34:18,400 Speaker 1: is going to catch on fire so that they can 571 00:34:19,080 --> 00:34:22,120 Speaker 1: make a bunch of money on it. And to your 572 00:34:22,200 --> 00:34:24,440 Speaker 1: point that you talk, I think we were talking off 573 00:34:24,480 --> 00:34:28,840 Speaker 1: air first before we hit record. If you're like, if 574 00:34:28,880 --> 00:34:30,840 Speaker 1: you're putting this stuff together, you don't even have to 575 00:34:30,920 --> 00:34:34,480 Speaker 1: be shorting in Vidia. Maybe you're unloading shares of Nvidia 576 00:34:34,480 --> 00:34:36,520 Speaker 1: if you're overexposed, So you're trying to drive this so 577 00:34:36,640 --> 00:34:38,239 Speaker 1: you can get somebody else to buy the shares from 578 00:34:38,239 --> 00:34:41,239 Speaker 1: you at a high price. But if this thing goes down, 579 00:34:41,360 --> 00:34:44,480 Speaker 1: the whole market is going down really quickly. It's all 580 00:34:44,760 --> 00:34:47,279 Speaker 1: it's it's all writing up on in video right now. 581 00:34:47,360 --> 00:34:50,200 Speaker 1: So if in Nvidia slows down, stops its growth, everything 582 00:34:50,239 --> 00:34:55,960 Speaker 1: else is coming down. So you're using this potentially to 583 00:34:56,160 --> 00:34:59,680 Speaker 1: unload your long on the market. You're using this to 584 00:35:00,120 --> 00:35:03,880 Speaker 1: short the market. So there's there's no paper trail for 585 00:35:04,360 --> 00:35:06,680 Speaker 1: you know, insider trading or manipulating the market here. 586 00:35:08,360 --> 00:35:11,839 Speaker 2: That's right, you can, and Magnetar has done a very 587 00:35:11,880 --> 00:35:16,160 Speaker 2: good job of maintaining an arm's length through their sleazy history. 588 00:35:16,320 --> 00:35:21,320 Speaker 2: Magnetar was not prosecuted during the fallout from the GFC, 589 00:35:22,800 --> 00:35:25,320 Speaker 2: Bank of America Merrill Lynch, who were Bank of America 590 00:35:25,400 --> 00:35:27,680 Speaker 2: I think who bought Merrill Lynch. They paid hundreds of 591 00:35:27,680 --> 00:35:30,520 Speaker 2: millions of dollars in fines to the SEC because they 592 00:35:30,600 --> 00:35:35,280 Speaker 2: withheld information from investors that those CDOs that they sold 593 00:35:35,320 --> 00:35:39,080 Speaker 2: to them were assembled by a company that was betting 594 00:35:39,120 --> 00:35:42,120 Speaker 2: against them. Don't you think the people who bought those 595 00:35:42,160 --> 00:35:45,279 Speaker 2: CDOs would have liked to know that information? That is 596 00:35:45,400 --> 00:35:49,120 Speaker 2: exactly what it looks like when emphasize looks like I do, 597 00:35:49,239 --> 00:35:52,239 Speaker 2: not having controvertible proof that they're all short these things 598 00:35:52,320 --> 00:35:55,440 Speaker 2: right now, right, but it really looks like it. And 599 00:35:55,600 --> 00:35:59,719 Speaker 2: look at the share performance of Nvidia after that earnings beat. 600 00:35:59,760 --> 00:36:02,440 Speaker 2: Look at that eleven percent after hours pop as retail 601 00:36:02,520 --> 00:36:05,399 Speaker 2: piles in, and look at the fade over the rest 602 00:36:05,480 --> 00:36:07,839 Speaker 2: of the day, over the following day, the big money 603 00:36:07,920 --> 00:36:12,759 Speaker 2: sold that rally. So it really there is a lot 604 00:36:12,840 --> 00:36:15,560 Speaker 2: of smoke there. There's a lot of smoke, all right, 605 00:36:15,640 --> 00:36:19,560 Speaker 2: And I'm not saying there's fire, but that's a lot 606 00:36:19,600 --> 00:36:23,120 Speaker 2: of smoke. Yeah, And there's more smoke coming, Joe, there's 607 00:36:23,160 --> 00:36:25,600 Speaker 2: so much more smoke coming. What do you want to 608 00:36:25,640 --> 00:36:31,800 Speaker 2: know next? Well, let's uh, well, let me ask you this. 609 00:36:32,800 --> 00:36:38,480 Speaker 2: You said there's a lot more smoke coming. What other 610 00:36:38,640 --> 00:36:41,920 Speaker 2: smoke is there? Because that's already a lot of smoke. 611 00:36:42,719 --> 00:36:45,880 Speaker 2: So we've got this this three way thing going with 612 00:36:46,400 --> 00:36:48,759 Speaker 2: magnetar to core weave to win video. We talked about 613 00:36:48,800 --> 00:36:51,479 Speaker 2: some of Nvidia's shady history. There run ins with the SEC. 614 00:36:51,640 --> 00:36:59,920 Speaker 2: We talked about Magnetars wonderfully unethical, diabolical unloading of CDOs 615 00:37:00,120 --> 00:37:03,120 Speaker 2: to the general public, and they got away with it. Amazing. 616 00:37:03,400 --> 00:37:06,359 Speaker 2: There's no happy ending in that story. Let's talk about 617 00:37:06,360 --> 00:37:09,480 Speaker 2: core weef now, because why core weef. I can't figure 618 00:37:09,520 --> 00:37:12,080 Speaker 2: out why will Nvidia sell to core Weave, Why will 619 00:37:12,120 --> 00:37:14,520 Speaker 2: Magnetar give core weave the money. There's got to be 620 00:37:14,560 --> 00:37:17,000 Speaker 2: something about these guys because they just own warehouses with 621 00:37:17,120 --> 00:37:21,200 Speaker 2: room for chips. Anybody can do that. And so I 622 00:37:21,239 --> 00:37:24,440 Speaker 2: started looking at these founders, all right, and I want 623 00:37:24,480 --> 00:37:27,160 Speaker 2: to zero in on three players here. Two of the 624 00:37:27,239 --> 00:37:31,480 Speaker 2: co founders, Michael and Trader, the current CEO, who has 625 00:37:31,600 --> 00:37:34,759 Speaker 2: no technical background. That's not a crime, right, I'm here 626 00:37:34,800 --> 00:37:36,920 Speaker 2: sitting here talking finance. I don't have a finance background. 627 00:37:36,920 --> 00:37:39,959 Speaker 2: I'm a mechanical engineer, all right, but that's not a crime. 628 00:37:41,120 --> 00:37:45,440 Speaker 2: Brian Venturo, he's their chief technology officer, again, does not 629 00:37:45,520 --> 00:37:49,320 Speaker 2: have a technical background. And one of their board of directors, 630 00:37:49,520 --> 00:37:52,840 Speaker 2: Jack Cogan, all right, there's a third founder, Brandon McBee. 631 00:37:53,680 --> 00:37:56,600 Speaker 2: He joined the party in twenty seventeen. He also doesn't 632 00:37:56,600 --> 00:37:59,120 Speaker 2: have a technical background. He's their chief science officer, but 633 00:37:59,280 --> 00:38:01,279 Speaker 2: he doesn't go back as far that I have been 634 00:38:01,320 --> 00:38:03,720 Speaker 2: able to find as these other three as Jack Cogan, 635 00:38:04,200 --> 00:38:07,960 Speaker 2: Michael and Trader, and Brandon McBee and not Brandon McBee, 636 00:38:07,960 --> 00:38:12,960 Speaker 2: Brian Venturo. Those three guys have been together for decades. 637 00:38:13,800 --> 00:38:17,480 Speaker 2: They founded a hedge fund together called Hudson Ridge Asset Management. 638 00:38:17,800 --> 00:38:20,239 Speaker 2: There is almost no history about what happened on that 639 00:38:20,320 --> 00:38:23,400 Speaker 2: hedge fund. I dug into them, I couldn't find anything 640 00:38:23,400 --> 00:38:26,200 Speaker 2: about them. I found a picture of a beer with 641 00:38:26,320 --> 00:38:29,040 Speaker 2: a reference to fridays at Hudson Ridge Asset Management. I 642 00:38:29,080 --> 00:38:31,719 Speaker 2: found an article about a weather intern from Penn State 643 00:38:32,160 --> 00:38:35,040 Speaker 2: who spent a summer in turning for Hudson Ridge Asset Management. 644 00:38:35,120 --> 00:38:38,680 Speaker 2: But nothing else. And Hudson Ridge did really good for 645 00:38:38,719 --> 00:38:41,760 Speaker 2: a year or two, and then they started to underperform 646 00:38:41,800 --> 00:38:43,640 Speaker 2: the S and P five hundred. They shut their doors 647 00:38:43,719 --> 00:38:48,200 Speaker 2: right around the time Atlantic Cryptocorp was founded. Now, Michael 648 00:38:48,239 --> 00:38:52,200 Speaker 2: and Trader, the CEO of Core Weave, Brian Venturo the 649 00:38:52,440 --> 00:38:55,320 Speaker 2: CTO of Core Weave, and Jack Cogan all worked together 650 00:38:55,360 --> 00:38:59,759 Speaker 2: at Hudson Ridge Asset Management. And even before that, these 651 00:38:59,840 --> 00:39:03,200 Speaker 2: three guys all worked together at a company called nat Source, 652 00:39:04,040 --> 00:39:07,160 Speaker 2: and that's where the smoke is. That's when when I 653 00:39:07,200 --> 00:39:09,879 Speaker 2: saw NAT Source that I found in about the first 654 00:39:09,920 --> 00:39:11,480 Speaker 2: ten minutes of this deep dive, and that's when I 655 00:39:11,560 --> 00:39:14,840 Speaker 2: knew something was up because NAT Source made their money 656 00:39:15,239 --> 00:39:18,600 Speaker 2: in carbon credits, and as soon as I said carbon credits, 657 00:39:19,200 --> 00:39:21,800 Speaker 2: all the red flags went up. I knew there was 658 00:39:21,840 --> 00:39:24,359 Speaker 2: something going on here because carbonreddits is a hot bread 659 00:39:24,520 --> 00:39:29,680 Speaker 2: hotbed of fraudulent activity, money laundering, tax evasion, all of it, 660 00:39:29,840 --> 00:39:34,400 Speaker 2: not to mention greenwashing at the expense of poor people. 661 00:39:35,719 --> 00:39:40,560 Speaker 2: And Jack Cogan was the former CEO of NAT Source, 662 00:39:41,680 --> 00:39:43,880 Speaker 2: Jack Cogan who sits on the board of directors at corwef. 663 00:39:44,760 --> 00:39:47,440 Speaker 2: Michael and Trader, the CEO of Corewave, was one of 664 00:39:47,520 --> 00:39:51,719 Speaker 2: his portfolio managers, and Brian Venturo, one of the co 665 00:39:51,840 --> 00:39:54,480 Speaker 2: founders of core Weave, also worked for Jack Cogan at NATSURCE. 666 00:39:55,320 --> 00:39:58,799 Speaker 2: So I went looking into nat Source and they were 667 00:39:58,920 --> 00:40:01,880 Speaker 2: leading the charge for cap and trade in the United 668 00:40:01,920 --> 00:40:04,080 Speaker 2: States back in two thousand and three. All through the 669 00:40:04,120 --> 00:40:06,160 Speaker 2: early two thousands, cap and trade was the big thing. 670 00:40:06,239 --> 00:40:10,399 Speaker 2: They were trying to create this mandatory market, and Jack 671 00:40:10,480 --> 00:40:13,000 Speaker 2: Cogan in particular, I found old footage of c SPAN 672 00:40:13,080 --> 00:40:15,359 Speaker 2: two this is in my part three video I talk 673 00:40:15,400 --> 00:40:21,600 Speaker 2: about this. He's asking Congress for flexible compliance frameworks, which 674 00:40:21,680 --> 00:40:24,320 Speaker 2: means give me a free for all. He's asking for 675 00:40:24,400 --> 00:40:27,480 Speaker 2: a mandatory cap and trade, which means force companies to 676 00:40:27,520 --> 00:40:30,600 Speaker 2: buy my product where I have very lax rules governing 677 00:40:30,640 --> 00:40:34,160 Speaker 2: my conduct. He said, do not exclude derivatives trading from 678 00:40:34,160 --> 00:40:37,840 Speaker 2: the carbon market, so allow me to financialize and do 679 00:40:38,000 --> 00:40:41,120 Speaker 2: all the kinds of wonderful engineering, manipulate prices through derivatives. 680 00:40:41,719 --> 00:40:45,360 Speaker 2: And he said, allow me to use carbon credits to 681 00:40:45,440 --> 00:40:48,640 Speaker 2: fund projects and developing countries in order to maintain cost 682 00:40:49,239 --> 00:40:51,640 Speaker 2: and coincidentally, that would also allow them to do business 683 00:40:51,680 --> 00:40:53,640 Speaker 2: in countries where they could take advantage of cheap land, 684 00:40:53,840 --> 00:40:57,040 Speaker 2: cheap labor. But also there's a lot of very dangerous 685 00:40:57,080 --> 00:40:59,760 Speaker 2: people with a lot of money to hide in countries 686 00:40:59,800 --> 00:41:05,320 Speaker 2: like at and Interpol warned about everything Jack Hogan was 687 00:41:05,360 --> 00:41:08,279 Speaker 2: asking for in a report in twenty thirteen that I 688 00:41:08,360 --> 00:41:11,720 Speaker 2: referenced in my part three video. Interpol warns how carbon 689 00:41:11,760 --> 00:41:14,320 Speaker 2: credits could be used for tax fraud, they could be 690 00:41:14,440 --> 00:41:19,239 Speaker 2: used for securities fraud, that there could be misstatement of 691 00:41:19,400 --> 00:41:24,000 Speaker 2: environmental benefits, that there could be transfer miss pricing, which 692 00:41:24,080 --> 00:41:26,799 Speaker 2: is where you basically ensure all of your profits are 693 00:41:26,800 --> 00:41:28,799 Speaker 2: booked in a tax saving country so that you can 694 00:41:29,120 --> 00:41:32,480 Speaker 2: low ball poor people in Africa, collect all your profits 695 00:41:32,520 --> 00:41:34,920 Speaker 2: in the Cayman Islands and then sell them into Europe 696 00:41:35,280 --> 00:41:37,879 Speaker 2: for no profits. So basically all the money is tax 697 00:41:37,920 --> 00:41:41,160 Speaker 2: free because you booked it at your shell company in 698 00:41:41,239 --> 00:41:46,520 Speaker 2: at tax saving So everything that Jack Hogan then source 699 00:41:46,600 --> 00:41:48,759 Speaker 2: guy who is now on the board of Directors of Corps, 700 00:41:48,800 --> 00:41:52,800 Speaker 2: we was asking Congress for Interpol, warned could facilitate financial crimes, 701 00:41:54,480 --> 00:41:58,160 Speaker 2: and Gary Gensler, oh, he's in this. Gary Gensler was 702 00:41:58,200 --> 00:42:02,480 Speaker 2: the head of the Commodity's Future Commission, the CFTC back then, 703 00:42:03,320 --> 00:42:05,640 Speaker 2: and Gary Gensler caught a lot of heat from Congress 704 00:42:05,719 --> 00:42:08,200 Speaker 2: because even though cap and trade was never passed, we 705 00:42:08,360 --> 00:42:11,520 Speaker 2: do have a voluntary carbon market, and it's not very 706 00:42:11,680 --> 00:42:15,680 Speaker 2: voluntary because ESG mandates forced companies to buy these carbon credits. 707 00:42:15,719 --> 00:42:19,080 Speaker 2: Otherwise the big fund managers won't buy their stock. So 708 00:42:19,239 --> 00:42:22,040 Speaker 2: Gary Gensler was running interference. He was getting a lot 709 00:42:22,080 --> 00:42:26,440 Speaker 2: of heat from Congress saying you're allowing these imaginary commodities 710 00:42:26,520 --> 00:42:29,839 Speaker 2: carbon credits to be traded willy nilly, and you're guaranteeing 711 00:42:29,960 --> 00:42:32,799 Speaker 2: that none of them fall under your jurisdiction. Why are 712 00:42:32,880 --> 00:42:36,600 Speaker 2: you doing that? And in one of the articles I 713 00:42:36,719 --> 00:42:39,239 Speaker 2: reference in my part three video, Gary Gensler is just 714 00:42:39,400 --> 00:42:42,600 Speaker 2: paying lip service to the need for transparency and strict regulations. 715 00:42:42,640 --> 00:42:45,439 Speaker 2: But then he's siding with Jack Hogan every time, giving 716 00:42:45,520 --> 00:42:48,480 Speaker 2: Jack Hogan exactly what he wants. That's the same Gary 717 00:42:48,520 --> 00:42:51,920 Speaker 2: Gensler who's now the head of the SEC who he 718 00:42:52,000 --> 00:42:54,880 Speaker 2: did nothing about precious metals manipulation at the CFTC, he 719 00:42:54,960 --> 00:42:58,560 Speaker 2: did nothing about dark pools, he did nothing about the 720 00:42:58,680 --> 00:43:02,439 Speaker 2: naked short selling of memestock. He met behind closed doors 721 00:43:02,480 --> 00:43:05,400 Speaker 2: with Sam bankman Fried. He's now leading the government takeover 722 00:43:05,520 --> 00:43:09,200 Speaker 2: of crypto. So Gary Gensler ran regulatory interference for Jack 723 00:43:09,239 --> 00:43:12,200 Speaker 2: Cogan back in the early two thousands so that he 724 00:43:12,239 --> 00:43:14,520 Speaker 2: could have this free for all in the voluntary carbon markets. 725 00:43:15,680 --> 00:43:19,480 Speaker 2: And one of the things I found was that nat 726 00:43:19,600 --> 00:43:23,320 Speaker 2: Source had at least twenty shell companies set up in 727 00:43:23,360 --> 00:43:27,440 Speaker 2: the Cayman Islands, possibly sixty. And I found that through 728 00:43:27,640 --> 00:43:30,680 Speaker 2: something called the Paradise Papers, which if you're listening you 729 00:43:30,800 --> 00:43:33,440 Speaker 2: probably heard of the Panama Papers, where all the wealthy 730 00:43:33,480 --> 00:43:35,439 Speaker 2: and the elites of the world were hiding their money 731 00:43:35,480 --> 00:43:39,360 Speaker 2: in shell companies in tax haven countries. The Paradise Papers 732 00:43:39,440 --> 00:43:41,120 Speaker 2: was essentially the same thing. It came out a few 733 00:43:41,200 --> 00:43:44,200 Speaker 2: years later. It was over thirteen million documents involving one 734 00:43:44,280 --> 00:43:48,400 Speaker 2: hundred and twenty thousand powerful people across the world. Jeffrey Epstein, 735 00:43:48,520 --> 00:43:52,520 Speaker 2: who didn't kill himself, was in it. Queen Elizabeth Prince, 736 00:43:52,680 --> 00:43:56,200 Speaker 2: Charles Rex Tillison, former Secretary of State, Wilbur Ross, former 737 00:43:56,239 --> 00:43:59,279 Speaker 2: Secretary of Commerce. All these guys were implicated in this, 738 00:43:59,520 --> 00:44:02,120 Speaker 2: and also implicated in the Paradise Papers were Michael and 739 00:44:02,160 --> 00:44:06,080 Speaker 2: Trader and Jack Cogan, the current CEO and director of Corweef. 740 00:44:06,760 --> 00:44:10,880 Speaker 2: These guys had at least twenty shell companies set up 741 00:44:10,880 --> 00:44:12,600 Speaker 2: in the Cayman Islands that I could find, and they 742 00:44:12,640 --> 00:44:17,360 Speaker 2: had names like Carbon Compliance Acquisition Corp. Fourteen, Carbon Compliance 743 00:44:17,520 --> 00:44:23,640 Speaker 2: Acquisition Corp thirty, NAT Source Acquisition Corp ninety nine, NAT 744 00:44:23,680 --> 00:44:26,680 Speaker 2: Source Carbon Acquisition Corp twenty two. There was even Carbon 745 00:44:26,760 --> 00:44:31,320 Speaker 2: Compliance Acquisition Corp sixty So I only counted twenty, but 746 00:44:31,480 --> 00:44:34,480 Speaker 2: the nomenclature suggests there could be as many as sixty 747 00:44:34,560 --> 00:44:41,360 Speaker 2: of these, So maybe somebody can enlighten me. What legal 748 00:44:41,520 --> 00:44:46,799 Speaker 2: reason would somebody have for setting up twenty at least 749 00:44:46,960 --> 00:44:51,080 Speaker 2: possibly sixty shell companies in the Cayman Islands a notorious 750 00:44:51,120 --> 00:44:56,399 Speaker 2: tax haven other than either transfer mispricing i e. Tax 751 00:44:56,480 --> 00:45:03,360 Speaker 2: evasion or more center money laundering, because another thing that 752 00:45:04,080 --> 00:45:08,160 Speaker 2: Interpol Interpol warned is that criminals could use carbon credits 753 00:45:08,840 --> 00:45:12,480 Speaker 2: as a way to purchase carbon credits or fund projects 754 00:45:13,120 --> 00:45:16,320 Speaker 2: in countries that don't ask questions, and then that money 755 00:45:16,400 --> 00:45:18,759 Speaker 2: could generate carbon credits which could be sold into the 756 00:45:18,800 --> 00:45:21,080 Speaker 2: traditional finance system as a way of washing the money. 757 00:45:22,360 --> 00:45:24,160 Speaker 2: And of course to do that you would need a 758 00:45:24,239 --> 00:45:27,600 Speaker 2: network of shell companies. Well, NAT Source Energy which was 759 00:45:27,680 --> 00:45:29,760 Speaker 2: run by the founders of Core We've had a network 760 00:45:29,800 --> 00:45:33,080 Speaker 2: of shell companies. And also keep in mind the business 761 00:45:33,120 --> 00:45:35,520 Speaker 2: that that got into after they left nat Source. All 762 00:45:35,600 --> 00:45:38,520 Speaker 2: these guys they got into crypto mining. And what is 763 00:45:38,600 --> 00:45:43,719 Speaker 2: one common denominator between carbon credits and crypto mining. Those 764 00:45:43,760 --> 00:45:49,279 Speaker 2: two things have nothing in common except money laundering. Both 765 00:45:49,440 --> 00:45:52,279 Speaker 2: are used for money laundering. They're actually the two best 766 00:45:52,360 --> 00:45:56,640 Speaker 2: ways to clean dirty money. I'm not saying that is 767 00:45:56,719 --> 00:46:01,200 Speaker 2: what Core Weave did, but they have a proximity to it, 768 00:46:01,400 --> 00:46:04,839 Speaker 2: that's for sure. They have a very close proximity through 769 00:46:04,880 --> 00:46:06,920 Speaker 2: their shell companies in the Cayman Islands, the trading in 770 00:46:06,960 --> 00:46:10,080 Speaker 2: the carbon markets, and the crypto mining. All right, those 771 00:46:10,120 --> 00:46:12,360 Speaker 2: are an awful lot of coincidences right there. That's an 772 00:46:12,360 --> 00:46:14,839 Speaker 2: awful lot of smoke. I do not have definitive proof 773 00:46:14,880 --> 00:46:17,320 Speaker 2: that they were engaged in these activities, but I do 774 00:46:17,480 --> 00:46:21,640 Speaker 2: have definitive proof through the International Consortium of Investigative Journalists 775 00:46:21,640 --> 00:46:24,800 Speaker 2: who published the Paradise Papers, that they did have that 776 00:46:25,080 --> 00:46:28,000 Speaker 2: network of shell companies, and they did specifically ask for 777 00:46:28,160 --> 00:46:32,520 Speaker 2: all the things that enabled these crimes. They ask Congress 778 00:46:32,520 --> 00:46:36,480 Speaker 2: for it. The footage is in my video. So now 779 00:46:36,600 --> 00:46:42,880 Speaker 2: let's loop this whole thing together. Magnetar Capital, who engineered 780 00:46:43,239 --> 00:46:46,520 Speaker 2: the sabotaging of CEOs, dumped them onto retail investors while 781 00:46:46,560 --> 00:46:51,200 Speaker 2: betting against them. Magnetar Capital inexplicably giving tens of millions, 782 00:46:51,400 --> 00:46:53,919 Speaker 2: then hundreds of millions, then billions of dollars to core Weaf, 783 00:46:55,280 --> 00:46:58,080 Speaker 2: people who formerly used to mine crypto and before that 784 00:46:58,239 --> 00:47:01,120 Speaker 2: they used to trade carbon credits through shell companies in 785 00:47:01,160 --> 00:47:05,480 Speaker 2: the Cayman Islands. And then core Weave turns around and 786 00:47:05,520 --> 00:47:08,800 Speaker 2: gives all that money to Nvidia, a company with a 787 00:47:08,960 --> 00:47:13,240 Speaker 2: history of cooking their books to drive artificial growth narratives. 788 00:47:14,520 --> 00:47:16,520 Speaker 2: You take all three of these stories and aggregate these 789 00:47:16,560 --> 00:47:19,160 Speaker 2: three main players in this all three of them have 790 00:47:19,840 --> 00:47:23,600 Speaker 2: at best a checkered past. And now I'm starting to 791 00:47:23,640 --> 00:47:26,480 Speaker 2: get a picture here. It really looks like retail traders 792 00:47:26,520 --> 00:47:29,120 Speaker 2: are being used as exit liquidity for these guys to 793 00:47:29,160 --> 00:47:33,200 Speaker 2: get out. And that's exactly what the trading pattern after 794 00:47:33,320 --> 00:47:37,520 Speaker 2: that magnificent quarter that Nvidia just posted looked like retail 795 00:47:37,680 --> 00:47:39,200 Speaker 2: piled in and big money sold. 796 00:47:42,320 --> 00:47:50,200 Speaker 1: M Well, I mean that's a perfect stubble. But the number, yes, 797 00:47:50,360 --> 00:47:56,000 Speaker 1: number one, I can't even imagine the amount of work 798 00:47:56,080 --> 00:47:59,120 Speaker 1: that you've had to put in to number one just 799 00:47:59,600 --> 00:48:02,000 Speaker 1: find to all of this information, and then number two 800 00:48:03,120 --> 00:48:07,000 Speaker 1: figure out how it weaves together. And for those listening, 801 00:48:07,320 --> 00:48:10,839 Speaker 1: you just had a big facial expression. Sounds like there's shill, 802 00:48:11,080 --> 00:48:15,000 Speaker 1: looks like there's something else you need to say. Ten minutes, brother, 803 00:48:15,760 --> 00:48:17,840 Speaker 1: here this is the shocker. It took me longer to 804 00:48:17,920 --> 00:48:19,960 Speaker 1: put it together, all right, putting it together and painting 805 00:48:20,040 --> 00:48:20,400 Speaker 1: the picture. 806 00:48:20,440 --> 00:48:22,440 Speaker 2: That took a while. And it takes a long time 807 00:48:22,520 --> 00:48:25,399 Speaker 2: to tell the story because there's it's a very hard 808 00:48:25,480 --> 00:48:27,400 Speaker 2: story to tell. And look, I got a little goofy 809 00:48:27,800 --> 00:48:29,880 Speaker 2: in my Part three video. I use C and C 810 00:48:30,120 --> 00:48:33,320 Speaker 2: Music Factory to try to tell the story because I 811 00:48:33,440 --> 00:48:35,920 Speaker 2: knew when I had to put C span two footage 812 00:48:35,920 --> 00:48:37,640 Speaker 2: from a decade ago in the video, I'm like, how 813 00:48:37,680 --> 00:48:39,920 Speaker 2: am I going to keep people with modern attention spans 814 00:48:39,960 --> 00:48:42,759 Speaker 2: engaged in this video? I know things that make you 815 00:48:42,840 --> 00:48:45,759 Speaker 2: go hmm, and which also means I had to demonetize 816 00:48:45,800 --> 00:48:48,120 Speaker 2: the video. I felt it was that important. I worked 817 00:48:48,360 --> 00:48:52,759 Speaker 2: all through Labor Day weekend. God bless Gigi, my wife. 818 00:48:52,880 --> 00:48:55,040 Speaker 2: It was our anniversary and I spent the whole weekend, 819 00:48:55,120 --> 00:48:57,800 Speaker 2: all three days, just buried in this putting this video together. 820 00:48:58,960 --> 00:49:01,919 Speaker 2: But Joe finding the stuff, I gotta tell you, brother, 821 00:49:02,520 --> 00:49:06,759 Speaker 2: ten minutes. It took me ten minutes to go to 822 00:49:06,880 --> 00:49:09,400 Speaker 2: the core Weave website and find the names of the guys, 823 00:49:10,400 --> 00:49:12,320 Speaker 2: and then with the names of the guys, go to 824 00:49:12,400 --> 00:49:16,839 Speaker 2: their LinkedIn pages find their common history, the Hudson Ridge 825 00:49:16,960 --> 00:49:19,319 Speaker 2: and the NAT Source company. And once I had NAT 826 00:49:19,360 --> 00:49:22,080 Speaker 2: Source and I started looking into them, then I found 827 00:49:22,440 --> 00:49:25,880 Speaker 2: the Carbon Compliance Acquisition Corps Shell Companies. I mean that 828 00:49:25,960 --> 00:49:30,680 Speaker 2: took ten minutes of Google to find this information, and 829 00:49:30,760 --> 00:49:32,600 Speaker 2: then it took a few days to stew and marinate 830 00:49:32,640 --> 00:49:35,160 Speaker 2: on it and build the picture. But Joe, this tells 831 00:49:35,239 --> 00:49:39,759 Speaker 2: me the ease with which I found this me nobody special, right, 832 00:49:39,840 --> 00:49:43,080 Speaker 2: I'm just I'm a former engineer who has a home 833 00:49:43,120 --> 00:49:46,520 Speaker 2: office YouTube operation. I put this together in a couple 834 00:49:46,560 --> 00:49:48,160 Speaker 2: of minutes of Google and then a few hours of 835 00:49:48,200 --> 00:49:51,120 Speaker 2: thinking about it. And the real shocker here is this 836 00:49:51,320 --> 00:49:54,680 Speaker 2: tells me I am the only one in the world 837 00:49:55,120 --> 00:49:59,120 Speaker 2: who bothered to look, because anybody else with half a 838 00:49:59,160 --> 00:50:01,719 Speaker 2: brain who looked would have found what I found. 839 00:50:02,440 --> 00:50:04,759 Speaker 1: Well, nobody looked in You're not. You're not getting this 840 00:50:05,120 --> 00:50:06,280 Speaker 1: from inside information. 841 00:50:06,480 --> 00:50:13,239 Speaker 2: You publicly available information, publicly information. It's it's. 842 00:50:14,440 --> 00:50:16,239 Speaker 1: It reminds me of going back to the movie that 843 00:50:16,280 --> 00:50:18,040 Speaker 1: we've talked about a few times in the Big Short, 844 00:50:18,640 --> 00:50:23,920 Speaker 1: when Michael Burry's saying that that it's it's it's going 845 00:50:23,960 --> 00:50:25,040 Speaker 1: to crash, They're going to default. 846 00:50:25,040 --> 00:50:25,640 Speaker 2: They're like, how do you know? 847 00:50:25,760 --> 00:50:30,520 Speaker 1: He's like, I read it, like I just I looked 848 00:50:30,719 --> 00:50:34,640 Speaker 1: and read it all and everybody's everybody's delinquent and not 849 00:50:34,719 --> 00:50:36,920 Speaker 1: making their payments. What do you mean I just looked. 850 00:50:37,040 --> 00:50:38,600 Speaker 1: I looked at all of them. They're not they're not 851 00:50:38,680 --> 00:50:39,520 Speaker 1: making their payments. 852 00:50:40,400 --> 00:50:41,640 Speaker 2: But you know, Joe, let me give you a word 853 00:50:41,680 --> 00:50:44,520 Speaker 2: of caution about that, because Burry was magnificent and he 854 00:50:44,680 --> 00:50:47,800 Speaker 2: was right, but he was early. Yeah, all right, And 855 00:50:48,040 --> 00:50:50,440 Speaker 2: you know I mentioned I have no position in in video, 856 00:50:50,920 --> 00:50:53,399 Speaker 2: and I commend you, brother for being short in video, 857 00:50:53,480 --> 00:50:55,320 Speaker 2: because that's you're braver. 858 00:50:55,280 --> 00:50:55,680 Speaker 1: Man than me. 859 00:50:55,800 --> 00:50:58,719 Speaker 2: That's and I'm a firefighter doing that. I'll run into 860 00:50:58,719 --> 00:51:03,000 Speaker 2: a burning building. I'm not short in that's stock standing. 861 00:51:03,160 --> 00:51:04,640 Speaker 2: You know. That's like standing in front of a freight 862 00:51:04,719 --> 00:51:06,400 Speaker 2: train and betting your life. It's going to stop. The 863 00:51:06,480 --> 00:51:08,359 Speaker 2: laws of physics are on your side. Eventually you're going 864 00:51:08,400 --> 00:51:09,960 Speaker 2: to be right, but you might be a pancake by then. 865 00:51:10,719 --> 00:51:13,080 Speaker 2: So Bury was early, and he almost didn't make it. 866 00:51:13,760 --> 00:51:16,120 Speaker 2: You know, he was way down. He was getting sued 867 00:51:16,120 --> 00:51:21,160 Speaker 2: by his investors because he underestimated just how much corruption 868 00:51:21,280 --> 00:51:26,840 Speaker 2: there was, just how how bad they with a capital T. 869 00:51:26,960 --> 00:51:30,120 Speaker 2: I always use air quotes. They all right, because they 870 00:51:30,400 --> 00:51:33,319 Speaker 2: will use the public for exit liquidity. They need time 871 00:51:33,640 --> 00:51:36,200 Speaker 2: to dump this stuff on our pensions. They need time 872 00:51:36,239 --> 00:51:38,399 Speaker 2: to dump this stuff into mutual funds four to one case. 873 00:51:38,440 --> 00:51:41,600 Speaker 2: They need time to get their money out. And the 874 00:51:41,760 --> 00:51:46,239 Speaker 2: AI Bubble, which appears to be a narrative concocted by 875 00:51:46,360 --> 00:51:49,320 Speaker 2: these sleezebags at Magnetar And I'm not saying the technology 876 00:51:49,400 --> 00:51:53,160 Speaker 2: isn't great. The technology is amazing, but the business practice, 877 00:51:53,280 --> 00:51:57,200 Speaker 2: the growth, the numbers behind it are all engineered, engineered 878 00:51:57,239 --> 00:52:01,440 Speaker 2: by people with a very shady past. And I just 879 00:52:01,600 --> 00:52:03,600 Speaker 2: need people to hear this story. I need to get 880 00:52:03,640 --> 00:52:05,800 Speaker 2: this story out there. People need to be warned. And 881 00:52:06,600 --> 00:52:09,480 Speaker 2: that's why with Part three, I got a little nutty 882 00:52:09,480 --> 00:52:12,080 Speaker 2: and a little loopy with the song because I needed 883 00:52:12,120 --> 00:52:15,640 Speaker 2: a way to keep non finance people engaged, and I 884 00:52:15,719 --> 00:52:18,319 Speaker 2: had to demonetize the video to put the song in there. 885 00:52:18,320 --> 00:52:20,640 Speaker 2: I felt that strongly about it. And the song is perfect, 886 00:52:20,680 --> 00:52:22,279 Speaker 2: by the way, because the song is by C and 887 00:52:22,320 --> 00:52:26,400 Speaker 2: C Music Factory, which is a fake band. They stole 888 00:52:26,520 --> 00:52:29,960 Speaker 2: Martha WASH's voice and dubbed it over a dancing model 889 00:52:30,080 --> 00:52:32,160 Speaker 2: to make her look like an artist. So you know 890 00:52:32,239 --> 00:52:34,239 Speaker 2: in the video there's people are dancing and they're having 891 00:52:34,280 --> 00:52:37,040 Speaker 2: a good time. But the joke is even the song 892 00:52:37,200 --> 00:52:40,920 Speaker 2: is fake. There's just so much corruption and greed and 893 00:52:41,080 --> 00:52:44,480 Speaker 2: fraud and it's everywhere and people need to know about it. 894 00:52:45,400 --> 00:52:47,239 Speaker 2: I got to get the message out because it's going 895 00:52:47,320 --> 00:52:50,759 Speaker 2: to get worse if people don't hear about it quick well. 896 00:52:50,760 --> 00:52:54,400 Speaker 1: I think it's very important as well, and the implications 897 00:52:54,600 --> 00:52:59,680 Speaker 1: are beyond justin video like we talked about earlier. Since 898 00:53:00,080 --> 00:53:02,759 Speaker 1: the whole market is writing on this AI craze and 899 00:53:03,239 --> 00:53:06,239 Speaker 1: the growth story here and without it, and without that 900 00:53:06,400 --> 00:53:11,719 Speaker 1: little bump that in Vidia's crazy growth has given the 901 00:53:11,760 --> 00:53:14,719 Speaker 1: overall market a little bump, you can imagine how ugly 902 00:53:14,800 --> 00:53:17,279 Speaker 1: things could get real quick. And I do want to 903 00:53:17,680 --> 00:53:22,520 Speaker 1: make a note, just because you brought it up, I 904 00:53:22,640 --> 00:53:24,480 Speaker 1: don't do this myself, and I would never recommend to 905 00:53:24,560 --> 00:53:30,720 Speaker 1: anybody ever participating in naked shorting anything, making any investment 906 00:53:30,800 --> 00:53:33,719 Speaker 1: choice or trading in any way that opens you up 907 00:53:33,840 --> 00:53:39,320 Speaker 1: to unlimited risk, especially for a limited potential gain. 908 00:53:39,760 --> 00:53:40,960 Speaker 2: Is literally the. 909 00:53:42,880 --> 00:53:45,600 Speaker 1: Last thing that anybody wants to do investing. And so 910 00:53:46,040 --> 00:53:47,800 Speaker 1: the way I just want to be very clear, the 911 00:53:47,920 --> 00:53:50,439 Speaker 1: way that if I ever enter into shorts, like I said, 912 00:53:50,440 --> 00:53:52,920 Speaker 1: I have a short position on Nvidia and the S 913 00:53:53,000 --> 00:53:55,680 Speaker 1: and P five hundred is through the use of options, 914 00:53:55,800 --> 00:53:57,279 Speaker 1: and that way I can make sure that I'm taking 915 00:53:57,280 --> 00:53:58,880 Speaker 1: on a very limited amount of risk so that if 916 00:53:58,880 --> 00:54:01,080 Speaker 1: I'm wrong, I lose a small amount of money, and 917 00:54:01,160 --> 00:54:03,120 Speaker 1: if I'm right, then I, you know, win big it's 918 00:54:03,120 --> 00:54:05,640 Speaker 1: an asymmetric rist to the upside for me, even though 919 00:54:05,640 --> 00:54:07,880 Speaker 1: it's technically a short on the on the market. So 920 00:54:08,320 --> 00:54:12,520 Speaker 1: anybody's interested in how I do that Heresy Financial University, 921 00:54:12,920 --> 00:54:16,800 Speaker 1: I teach advanced hedging techniques like that. But thank you 922 00:54:16,960 --> 00:54:19,520 Speaker 1: so much, Jack for coming on and explaining all this. 923 00:54:19,800 --> 00:54:23,160 Speaker 1: You've put together some really in depth stuff on this. 924 00:54:23,239 --> 00:54:26,319 Speaker 1: Everybody's been having you talk about this. I imagine more 925 00:54:26,320 --> 00:54:29,200 Speaker 1: and more is going to come out as people start 926 00:54:29,239 --> 00:54:31,440 Speaker 1: contacting you and saying, hey, I have more information. So 927 00:54:32,080 --> 00:54:35,480 Speaker 1: I encourage everybody to go subscribe to your YouTube channel 928 00:54:36,440 --> 00:54:39,920 Speaker 1: and I will link that in the show notes. And 929 00:54:40,239 --> 00:54:42,360 Speaker 1: it's Nobody's special finance. 930 00:54:43,200 --> 00:54:46,919 Speaker 2: Yes, nobody Special Finance. That's me and Joe. If I could, 931 00:54:47,800 --> 00:54:49,239 Speaker 2: I'm going to give you a partial credit for this 932 00:54:49,360 --> 00:54:52,200 Speaker 2: one because you are one of the reasons I started 933 00:54:52,239 --> 00:54:54,200 Speaker 2: a YouTube channel. I just want you to know that 934 00:54:55,360 --> 00:54:58,440 Speaker 2: I don't have a finance background. I knew after Repo 935 00:54:58,560 --> 00:55:02,719 Speaker 2: Madness in twenty seventeen that something was up. It was 936 00:55:02,760 --> 00:55:05,200 Speaker 2: it twenty seventeen or twenty eighteen, No, twenty nineteen, sorry, 937 00:55:05,239 --> 00:55:07,239 Speaker 2: September of twenty nineteen. I knew something was up with 938 00:55:07,320 --> 00:55:10,320 Speaker 2: repomannas I didn't know what I didn't know enough, and 939 00:55:10,440 --> 00:55:13,160 Speaker 2: I went digging and I came across your YouTube channel, 940 00:55:13,200 --> 00:55:16,160 Speaker 2: and that's why I discovered Heresy Financial right around Repomannas, 941 00:55:16,160 --> 00:55:18,439 Speaker 2: and you did a fantastic explanation of what was going 942 00:55:18,480 --> 00:55:21,120 Speaker 2: on and a very large part of this trip that 943 00:55:21,160 --> 00:55:23,000 Speaker 2: I've taken over the last few years that saw me 944 00:55:23,120 --> 00:55:25,479 Speaker 2: walk away from a very lucrative career in nuclear power 945 00:55:25,880 --> 00:55:29,480 Speaker 2: and into a very non lucrative career in youtubing. But 946 00:55:30,000 --> 00:55:32,120 Speaker 2: you were a big influence in that and your channel, 947 00:55:32,239 --> 00:55:34,800 Speaker 2: and I really admire what you do here and I 948 00:55:34,920 --> 00:55:38,000 Speaker 2: would not have been in a position to go do 949 00:55:38,160 --> 00:55:40,800 Speaker 2: this digging and find this if it wasn't for your influence. 950 00:55:40,920 --> 00:55:42,520 Speaker 2: So I'm going to share the credit with this one 951 00:55:43,360 --> 00:55:44,680 Speaker 2: with you. So thank you for that. 952 00:55:45,560 --> 00:55:47,840 Speaker 1: Well, thank you. That means a lot to me, and 953 00:55:48,680 --> 00:55:51,080 Speaker 1: I'm glad that you are doing what you're doing. I 954 00:55:51,160 --> 00:55:53,360 Speaker 1: think what you're doing is good for the world. Everybody 955 00:55:53,440 --> 00:55:57,000 Speaker 1: needs to needs to hear it, and so I keep 956 00:55:57,040 --> 00:56:00,239 Speaker 1: on going and I'm really really excited to say, see 957 00:56:00,280 --> 00:56:02,520 Speaker 1: how this whole thing unfolds, and I know you'll be 958 00:56:02,960 --> 00:56:03,800 Speaker 1: leading to charge. 959 00:56:03,600 --> 00:56:07,479 Speaker 2: With the story. You and me both brother yep. And guys, 960 00:56:07,520 --> 00:56:10,160 Speaker 2: if you hear this, share this, get this out there 961 00:56:10,239 --> 00:56:13,480 Speaker 2: because the press will not cover it. I have sent 962 00:56:13,560 --> 00:56:17,640 Speaker 2: this to journalists. I see people are tagging journalists left 963 00:56:17,680 --> 00:56:21,120 Speaker 2: and right on Twitter. This got one. This series got 964 00:56:21,280 --> 00:56:24,279 Speaker 2: one point three million views on Twitter, oddly enough, and 965 00:56:24,360 --> 00:56:26,600 Speaker 2: only got about thirty thousand views on YouTube, even though 966 00:56:26,680 --> 00:56:29,200 Speaker 2: my YouTube following is twice as big as my Twitter following. 967 00:56:29,800 --> 00:56:32,279 Speaker 2: I'm not saying that google Stock would sink along with 968 00:56:32,360 --> 00:56:34,440 Speaker 2: it in video if the AI mania were to fade, 969 00:56:34,480 --> 00:56:39,080 Speaker 2: but things that make you go. But it did really 970 00:56:39,120 --> 00:56:41,880 Speaker 2: well on Twitter, and I know people in the financial 971 00:56:41,960 --> 00:56:46,440 Speaker 2: press have noticed. Nobody has talked about it, yet nobody 972 00:56:46,480 --> 00:56:49,080 Speaker 2: wants to cover it. And remember that was another feature 973 00:56:49,080 --> 00:56:51,160 Speaker 2: in that movie we talked about. The press was more 974 00:56:51,200 --> 00:56:53,839 Speaker 2: worried about losing access that they didn't want to cover 975 00:56:53,920 --> 00:56:54,879 Speaker 2: it until it was too late. 976 00:56:56,080 --> 00:56:57,600 Speaker 1: Well, we are the new press, so. 977 00:56:59,120 --> 00:56:59,600 Speaker 2: I started. 978 00:56:59,640 --> 00:57:01,719 Speaker 1: I've I've been seeing this start to trend, and I 979 00:57:01,800 --> 00:57:04,680 Speaker 1: think that this is the proper way today today's day 980 00:57:04,680 --> 00:57:06,080 Speaker 1: and age, to get the word out about things. 981 00:57:06,160 --> 00:57:07,759 Speaker 2: So keep it up. 982 00:57:07,800 --> 00:57:10,040 Speaker 1: I appreciate what you're doing. And then again, anybody, I 983 00:57:10,600 --> 00:57:15,920 Speaker 1: highly recommend going in following nobody Special Finance on YouTube, 984 00:57:16,360 --> 00:57:18,720 Speaker 1: so thanks so much. We'll talk again soon. 985 00:57:19,400 --> 00:57:19,919 Speaker 2: Thanks Joe,