Max kaiser this is the kaiser report maximalist maximalist for max kaiser thats been obvious for years hey there might be some sounds hearing on the side walk thats just the clickety clack of laundry baskets here krypto springs in palm springs california the hottest crypto conference in the world. It is indeed the hottest conference in bake wine i want you to look at the marquee by the way i helped design this one were also toshi except for dot dot dot well we all know who that is but you know i want to turn to twitter because there was a viral little video clip that josh brown downtown josh brown posted to his twitter handle and he was so excited because he actually went viral had over 75000. 00 views this is the part i never want you to forget wall street was this close to selling you we work at 50000000000. 00 stop quacking like a duck and theyll stop throwing bread comes at you and heres the video clip this is the key thing to understand and to never forget wall street was this close to selling you. We work out a 50000000000. 00 they were ready to go they were locked and loaded the road shows planned everything fell apart at the last minute and now there are lines out of them and might step down as c. E. O. Theyll be called chairmen and theyre going to clean things up but theyre going to try to do what we did a year before it went public but the point is not that the point is that we works underwriters wall street banks with Wealth Management divisions were this close to selling the t. You had a 50000000000. 00 valuation and now we dont know if it will even get 10000000000. 00 we dont. Its really didnt get an i. P. O. At all remains to be seen they have to i. P. O. Will default on a whole bunch of debt so i. Think so in the hope that theyll find a way to get it done but this is the part you should never forget they were ready to go right and it was laid on the right or j. P. Morgan of course you know because the 2000 and crash because of the 987 crash because the dot com crash all these different regional brokerages all got consolidated and taken over and theres only like one or 2 left and one of them is thinking jamie dimon the tapeworm of wall street the parasite and he almost took this bag of garbage this colossal multi 1000000000. 00 bedded fecal matter public put it into the pension accounts in the iras and the brokerage accounts of people all over america for a quick buck as he always does josh brown is correct to point this out and as he points out it came very close to happening but lets not forget that right now things are happening and they have not been stopped the whole repo scandal is ongoing the whole d negative Interest Rates are the same as we were in the federal in the bond market these things are happening or experiencing a breakdown in markets all over the world so what we have we dodge one bullet call the we work and i. P. O. Were getting gunned down and i have a financial bullets from financial bad guys shooting at us with impunity and very well put you back to back shooting at us with impunity to sing for the new major Motion Picture ill be starring in by the photographer of this show i forget this thing but the nice guy those magic tricks like i do. Yes patrick is great. So you know what the repo market is yes its continuous going to war if the situation is getting worse thats where were going to have to fly back to the east coast to deal with that because i want to turn next to another article this is a Business Insider we doesnt work on the disposing of it. C. E. O. I wrote in business and cider not about adam newmans salacious antics but about the prank that is we works Business Model itself and how it has adversely skewed the Office Markets in new york and london i dont really care so much about the commercial Real Estate Market he goes into any talks about how its going to impact that because of that because of the fact that we work as weve covered is the largest tenant in new york and in london so i want to look at the part that is relevant to the Monetary System and what weve been talking about because the long term liabilities of course in the last episode we were talking about the fact that the banks in europe as j. P. Morgan pointed out in their report the banks in europe are unable to make money anymore because the business of banking is very simple they borrow short and lend long so they can always match their liabilities and their risk there are many able to manage their risk until negative Interest Rates here we have a system whereby this company has 34000000000. 00 in long term liabilities a rense they over the next 15 years and short term income streams these are temporary like offices and theyre relying on this this is like a no go this is that what youre taught in Business School not to do this is like a disaster zone but because time no longer has value because of negative Interest Rates because of this machine gun sort of situation youre talking about fraud everywhere this is the new Business Model and also on top of this hes in the sector with actual real sharks like king ping of the commercial real estate sector so the very landlords who actually own the space from which we work is plying its wares can set up and are setting up their own lemonade stands as he calls them in the form of short term flexible octopussy coworking spaces copious support services and tie ins so we work is renting from huge commercial landlords in new york and theyre renting a floor 2 or 3 floors in the building and then the same course the Real Estate Agents are saying. Wait were going to do the same model we own the building and were just going to do like were going to offer a short term lets just well its remarkable predatory behavior within a predatory nation within a predatory company that was going public thanks to a Predatory Bank j. P. Morgan so its a parasite rather than a predator or wrapped in a barrel disease wrapped in diarrhea pretty much just you and some of the stuff. Remarkable point you just mentioned theres only one cardinal sin you can make in business. If you just fill it down to its essence and that would be your long term liabilities and in such a way a mismatch and this is taking that cardinal sin and packaging it as their value added so it would be like satan going public on the New York Stock Exchange and guaranteeing eternal damnation for everyone and everyone applauding this and giving him 56000000000000. 00 valuation we work is kind of trying to pitch themselves as that of commercial real estate sector of the office space sector so the problem is that this form of is one that has guaranteed all its drivers pay at least multiple fleets of cars for the next decade in a half and then some long term liabilities against short term income streams would make no more sense of that right hail industry than they do to the commercial real estate even less so for the latter as real say its far more expensive and rigid a commodity than cars and yet people landlords can provide a small fraction of their inventory for coworking shore occupancy without carrying their Business Model in risk for we work apparently under taking risk is the Business Model risk as a service has a risk as a service because it all just talk about a company and say well they lose money on every unit they sell but they make it up on volume ha ha ha thats impossible if youre losing money on every unit but here you have. Take in that idea in a world war Interest Rates are negative remember weve gone through the Looking Glass so i getting a guaranteed loss in obama is seen as an asset thats worth buying and and engendering a premium so the Us Government bonds that are guaranteed losers are trading at a premium to their face value so a company that takes losses as a service thats guaranteeing a wipe out in your in your account is now supposedly trading at a valuation as an i. P. O. Its arrive all of the biggest corporations in America Josh Brown over there were every is now saying on p. C. I think you know he put out this viral video and he you know it is it is a lunacy but its not an isolated case its within the system as weve been reporting for years that takes lunacy as a service we see as a service risk as a service of course the fed the other Central Banks around the world what theyve been trying to induce is more risk taking so course it would be natural that within this paradigm post 2008 we now have risk as a Service Business is popping up because this is what theyre trying to sell. And youve already talked about that how you know the options trading the volatility former allowed the separation of risk and reward so they get to dump all the risk on everybody else and the wall street gets to keep the reward now of course jamie dimon and j. P. Morgan by the way here they were going to sell their investors this turkey which was valued at 50000000000 now its down at 10000000000 in my not even be able to i. P. O. So we dont even know if its worth anything right he of course has called big point a fraud and got caught not only with their Precious Metals manipulation but now this china this is as bad as any ice you know that ever happened in this space trade hes been caught dozens of times committing fraud and hes paid hundreds of billions in fines yet and thats called moral hazard because marilee you would go to jail for that but he pays a fine and so he interprets that. As a green light to commit more fraud he said famously in congress when he was pointed out to him by congressman mr diamond youve committed a crime any you know smile and looked at them and so will find me right because i hold a guaranteed under obama Financial Crimes are not prosecutor in america youre committing a Financial Crime with a lot of money youre considered a hero if you introduce a negative Interest Rate considered god if youre trying to take a sack of garbage public j. P. Morgan youre considered an immortal and thats unfortunately going to lead to a dire and. The Financial System now i want to turn to ed harris and then he tweeted this story from the Financial Times and again so they were going to dump we work on to 50000000000. 00 valuation with this company with a Business Model that makes no sense at all and these wall street guys knew it had a Business Model that they know because its fundamentally unsound they know that this is what they teach you in all Business Schools when when banks used to actually do some lending to businesses j. P. Morgan would have never lend to anybody with this Business Model right insider stock sales rise to decade high in the u. S. Executives across the u. S. Are shedding stock in their own companies at the fastest pace in 2 decades amid concerns. That the long bull market in equities is reaching its final stages so the highest 2 decades in writer sales of their stock. Sales are recorded every quarter by Services Made public how insiders are c. E. O. s the. People who run the companies that are selling their own stock and so we can see that this record stock price on the dow jones and there are some people the people who actually run these companies are dumping their dumping as fast as they can and that obviously is not a good sign and usually. Creek is a precursor to to an event of some type. They have very big doubts in the stock market and i want to turn to one other crazy story kind of like in the we work thing because after we work the next highest valued unicorn was jewel j u u l which was this beeping company you know theyre being sued left right and center the federal regulators actually saying like dont invade that this might kill you. The day it plowed 13000000000. 00 into super unicorn jewel jewel a San Francisco start up dominates the east Cigarette Market in the u. S. It research in point 6000000000. 00 during its fund raising round of this amount 12800000000. 00 was invested by cigarette giant algeria last december in return for a 35 percent equity stake the deal gave jewel a valuation of 38000000000. 00 obviously its not going well 8 for them which it couldnt have happened to Better Company right is already like kill millions of people around the world with their Business Model like speaking of a bad Business Model like like have your customers die right in the in the cigarette making business so then they got into another business where theyre going to like kill those who didnt die from the last round of cancer as a service yeah and you know tray of course is the rebranding of fillmore you know bill morris a Cigarette Company but after it was determined they were selling cancer they decided we need to rebranding and so they became entree and then they decided oh you know theres a new way to get cancer its called baiting lets put billions of dollars into that and oh wait a minute maybe theres going to be a markdown wow well now weve got to take a break and when we come back im going to be continuing dont go away. Join me every thursday on the alex simon show and ill be speaking to guest of the world of politics sports business im showbusiness ill see you then. From calls for trunks and pietschmann to the saga known as parades and political elites appear to be terrified of democracy and the peoples will also should we lament the passing of the new liberal order. In 2040 you know bloody revolution to to correct the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just no war here i mean your list book video. Scrolling needle the former ukrainian president recalls the events of 2014. Of those who took part in this to do over 5000000000. 00 to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. Welcome back to the report im. Been hearing about it. Basically to figure out the best way. To do it. With. The knowledge that theyre going to. Feature. People. Actually. Indoctrinate you can give them a little bit of. Minimum maximum 5 years in the 1st year we give you know. Basically teach. People that. We know for sure. Theyre going to have a really good shot at understanding what about. The yeah i mean its a combination of a couple things i was given. January 24th and i was super busy working on. At the time and it just didnt take. I was trying to drag my parents. Trying to get my dad to. March of this year and. It would have given him some but i didnt want to trade it for. As a way to give to his audience. Because he felt that. The government. Actually work with. The advisors. Great. Of course the big. So what do they have in common this group of. Helping out making connections and. Yeah i think i think its important to make. We think of it like a scale. And i think what that means is you need to make sure that it sort of. People have a plan but its actually kind of a rocky road to get into it because its still an s. And Technology Center so the business itself tell me a little bit about that because it is a business sure its a for profit business absolutely so how does that work for you guys in the how do you scale it what you like and i mean really were just taking transaction fees on the way in and so we as im sure is right in line with the way you think about things we dont let people give their own bitcoins we want everybody to hold their bitcoins out of them so you can only liquidate for a beautiful orange coin and put that in your friends account another really important aspect of the business and we suspect this will be a big use cases you can actually sign up to get the coin so if you want to sort of you know go fund yourself for your birthday or a wedding or christmas or whatever you can sign up and then tell your friends that you want to get the coin for president thats a cool marketing line will fund or sell also for imagine baby showers you know you may be coming along and 18 years youve got that big expense everyone is freaking out about it you can set this up and hopefully some of that funding will be offset by. Absolutely yeah were really excited to have the bitcoin rabbi involved because we think well do a lot with bar and bottom its because we love that 5 year window between turning 30 and then being an adult and having a bunch of bitcoin waiting for you i say this often that you dont change because pickling changes you absolutely and so does that mean to you well. A rallying cry for us and a phrase we use a lot is basically the gift of bitcoin giving the gift of bitcoin not just big clients and were actually in early process of writing a book called the gift of bitcoin which is going to be a collection of stories from people around the world about how bitcoin actually changed them for the better or made them think about things more of a low time preference way and improve their lives you know ive been thinking about Different Things like the way that the foundation in. Bangladesh forget the name exactly but they made micro payments of bell ball for. Are. Women and they really transformed the green bank. And this was using finance and capitalism in a new innovative way and to make these micro loans and its also cycled i think the name is people are giving. Small amounts to small producers in different regions of the world and so money in capitalism is being transformed before our eyes in the case of her main interesting lee enough they kind of ran up against the establishment the big banks came in and they