and they're going to clean things up but they're going to try to do what oprah did a year before it went public but the point is not that the point is. we works underwriters wall street banks with wealth management divisions were this close to selling it to you at a $50000000000.00 valuation and now we don't know if it will even get $10000000000.00 we don't know if it'll even get an i.p.o. it all remains to be seen they have to i.p.o. or the fall of a whole bunch of dead so i think thanks on the hook that they'll find a way to get it done but this is the part you should never forget they were ready to go right and who was the lead underwriter j.p. morgan of course you know because of the 2008 crash because of the 987 crash because the dot com crash all these different regional brokerages all got consolidated and taken over and there's only like one or 2 left but one of them is satan 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 bite as he always does josh brown is correct to point this out and as he points out it came very close to happening but let's not forget that right now things are happening and they have not been stopped a whole repo scandal is ongoing the whole 'd negative interest rates are the same we work 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 an i.p.o. but we're getting gunned down in a hail of financial bullets from financial bad guys shooting at us with impunity very well play you thank you actuating out is with impunity for the new major motion picture i'll be starring in by the photographer of this show i forget his name but it's a nice guy those magic tricks like i do. yes patrick is

a great film. so max you know what the repo market is yes it's continuing it's going to worse the situation is getting worse we're going to have to fly back to the east coast to deal with that because i want to turn next to another article this was a business insider we doesn't work on the deposing of its c.e.o. i wrote in business insider not about adam newman 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 don't really care so much about the commercial real estate market he goes into any talks about how it's going to impact that because of that because of the fact that we work as we've covered is the largest tenant in new york and london so i want to look at the part that is relevant to the monetary system and what we've 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 that 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 they're relying on this this is like a no go this is that what you're 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 you're talking about fraud everywhere this is the new business model and also on top of this he's 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 in 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 occupancy co-working spaces copious support services and tie ins so we work is renting from huge commercial landlords in new york and they're renting a floor 2 or 3 floors in the building and then the same course the real estate agents are saying wait we're going to do the same model we own the building and we're just going to do like we're going to offer short term let's as well it's remarkable predatory behavior within a predatory nation within a predatory company that was going public thanks to a predatory bank j.p. morgan so it's a parasite wrapped in a predator or wrapped in a neural disease wrapped in diarrhea pretty much as you would sum this up and it's remarkable what you just mentioned there's 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 that mat a mismatch and this is taking the cardinals and packaging it. there are value added so it would be like say 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 the 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 we'll say is far more expensive and rigid a commodity than cars and yes people landlords can provide a small fraction of their inventory for coworking shore occupancy without. burying

their business model in risk for we work apparently undertaking risk is the business model risk as a service has a risk as a service as 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 hahaha that's impossible if you're losing money on every unit but here you have taken that idea in a world where interest rates are negative remember you've gone through the looking glass getting a guaranteed loss and obama is seen as an asset that's worth buying and and then gendering a premium so these government bonds that are guaranteed losers are trading at a premium to their face value so a company that takes losses as a service is guaranteeing a wipe out in your in your account is now supposedly trading at a valuation as an i.p.o. to rival the biggest corporations in america josh brown over there wherever he is now i think you know he put out this viral video and he you know it is it is

a lunacy but as an isolated case it's within the system as we've been reporting for years that it takes lunacy as a service lucy as a service risk as a service of course the fed other central banks around the world what they've been trying to induce is more risk taking so of course it would be natural that within this paradigm post 2008 we now have risk as a service businesses popping up because this is what they're trying to sell. and you've already talked about that how you know options trading the volatility for me allow the separation of risk and reward said 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 the turkey which was valued at 50000000000 now it's down at 10000000000 in my not even be able to i.p.o. so we don't even know if it's 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 trying to this is as bad as any ice you know that ever happened in this space right he's been caught dozens of times committing fraud and he's paid hundreds of billions in fines yeah that's 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 famously in congress when he was pointed out to him by congressman mr diamond you committed a crime any you know had to shush your cat 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 you're committing a financial crime with a lot of money you're considered a hero if you introduce a negative interest rate considered a god if you're trying to take a sack of garbage public j.p. morgan you're considered an immoral and that's unfortunately is going to lead to a dire and. the financial system now i want to turn to ed harris and 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 it's 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 price so these sales are recorded every quarter by services. make public how insiders or

c.e.o.'s the. people who run the companies are selling their own stuff and so we can see 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. usually is a precursor 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 the company you know they're being sued left right and center the federal regulators actually saying like don't invade that this might kill you. the day it plowed $13000000000.00 into super unicorn jewel jewel a san francisco startup dominates the east cigarette market in the u.s.

. point $6000000000.00 during its fund raising round of this amount $12800000000.00 was invested by cigarette giant. last december in return for a 35 percent equity stake the deal gave jewel a valuation of $38000000000.00. going well for them which it couldn't have happened to better company right already like kill millions of people around the world with their business model like speaking of a bad business model like like half your customers die right in the in the cigarette making business so then they got into another business where they're going to kill those who didn't die for the last. yeah and you know of course is the rebranding of philip morris you know the cigarette company but after. they were selling cancer they decided we need to rebranding and so they became and they decided oh you know there's a new way to get cancer it's called baiting let's put it. into dollars and. oh wait

a minute maybe there's going to be a mark down wow well now we've got to take a break and when we come back i'm going to be continuing don't go away. with lawmakers manufacture consent instead of public wealth. when the ruling classes protect themselves. in the final merry go round of lives only the one percent. we can all middle of the room sick. i mean real news. in 2040 you know bloody revolution of you tube clip the demonstrations going from

being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it your style or here i mean your list with video through me in the new bill is that i knew. the former ukrainian president recalls the events of 2014. of those who took part in this today over 5000000000 dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. paradise with some all year round turned into a round the experimentation field for agricultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would the chemical company workers themselves be geared up that suited up locals. attempt to combat the on regulated experiments but often in vain you have

many of these people who have one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental research going on in hawaii whether these companies feel they can get away with this because the people have less political power. welcome back to the report i'm.

been hearing about it. basically to figure out the best way. to. the knowledge that they're going to. feature. people in. 12.

minimum maximum 5 years. we give. basically each. people. we know for sure. they're going to have a really good shot at understanding what they're about.

yeah i mean it's a combination of a couple things i was given. january 24th and i was super busy working on. at the time and it just didn't take. i was also trying to drag my parents. trying to get my dad to. march of this year. it would have been given him but i didn't 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. so what do they have in common the scope of. helping out making connections and. yeah i think i think it's important to make this. we think of it like a scale. and i think what that means is you need to make sure that it's sort of like. people. the people in it they like but it's actually kind of a rocky road to get into it because it's still a mess and technology extent or so the business itself tell me a little bit about that because it is a business sure it's 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 we're just taking transaction fees on the way. we as i'm sure is right in line with the way you think about things we don't 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 friend's 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 that's a cool marketing line will fund or sell also for imagine a baby shower you know your baby coming along and 18 years you've 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 we're really excited to have the bitcoin rabbi involved because we think we'll do a lot with bar and bottom it's 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 don't change because pickling changes you absolutely and so it is i mean 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 we're actually in the 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 in more of a low time preference way and improve their lives you know i've 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 greenbank. and this was using finance and capitalism in a new innovative way and to make these micro loans and it's 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 started to raise their rates and it became our predatory and so it's vic wayne curious what your thoughts are on this because the same that rather states now where it's doing battle with the big guys you've got now futures contracts you've got derivatives there's some concern that the price will be manipulated that they've seen precious metals you know after years of reporting that j.p. morgan manipulate the price of gold and silver and having them denied having regulators deny even though the irrefutable proof was. right in front of their nose and finally came out that it's fact they have been manipulating the markets and we know why they manipulate those markets so in the case that they were only on that

curve we had a we just entering now the bigger battlefield we prepared for that battlefield. well you know i'm i'm a finance m.b.a. from university of chicago has been in startups and i you know when i decided last august to spend my career going forward. the 1st thing i thought about was how do you get institutions involved and i spent last fall trying to work on getting a closed end fund listed for the g.s. could get in and i basically was just completely uninspired by that and i think the reason why is because i just didn't think that that would move the dial nearly as much as getting millions of individual humans involved getting like you know one percent of some portfolio that somebody manages for somebody else like. invest they have no soul in the game there right as i saw our friends. over at martin capital and pomp so we know very well they have that message get off one percent. you know you just get the institutions just begin that path and that's what they've taken as

their way to move the ball forward you're saying you look at that and decided maybe instead of getting one billionaire to own a couple of bitcoin i'm going to get a 1000000000 people not a fraction of a big climb well i think they in particular are actually more aligned than you would think just because their network has always been a lot of family offices so they're not usually going to try to like blackstone in the big client it's much more likely that it's going to be on a road show with a lot of family offices so it's kind of just like the high end of what i'm talking about. obviously palm spends a lot of time talking to hundreds of thousands of people with this broadcast and things like that and i think that's a and b saying right exam and talking the language of c. and the thing i mean i don't mean to digress into talking about completely so i mean a completely separate and i did ok but but but you guys are part of ecosystem stronger because it is just stronger. based on absolute numbers of people that care about the client it's more decentralized it's more powerful and you know there are fewer

choke points and there's fewer opportunity for you know regulatory interference or government action or whatever the case may be we just you know we want more miners and more full nodes and more people doing self sovereignty and we want more people owning bitcoin however we can get them done that quite a service like this are in a special service they do share a common need for custodial service right right so. here comes the spring and in the opening statements by malcolm to mirrors she was talking about time of a loss of innocence and industry moving away from the cypherpunk era to what you call the eternal september an era of kind of turning this whole thing until playing the mill a commodity is boring instrument if i can summarize it in that way. what do you think about this idea where having a big client custodial services is not necessarily a great match with that cypherpunk thought process you know cypherpunk being like

everyone needs to be going to burn everything down and we're going to encrypt everything and everyone can go to hell you know to study services are like we want to be part of the big the big club how do you reconcile but i think it's symbolic i think that quinn is way more powerful when there are enough people that are doing a totally private self sovereign totally fine with picking up stakes and moving to another jurisdiction and fighting this fight till the bitter end but obviously number goes up when a lot of people even if it's custodial at coinbase or wherever crack and holding onto a number goes up price goes up it is as someone once described klein a movement toward universal acceptance of hard money and peace to. get rich scheme yes. it is so that rising prices we've been trying for decades now to look at rising price equals good like in the case of a we work i.p.o. even though it's complete garbage the fact that the price went up for 3 years on

the venture capital markets mean it's good so that's our mindset that's our lizard brain that's right something quite hacks that lizard brain and says keep looking at the price going up but by the way we're going to turn you into a self sovereign individual who's doing battle with centralized nefarious warmongers am i just putting words into your mouth. your words but i agree with you i think i think recruits recruits and creates passionate individuals you know as effectively as anything that i've ever seen not a cover up that you go and thank you that's been the company is give thanks they have ties report page to mexico that's going to go to the stairs of the cars are part of a mac address if you have an i think i get one only cory clips then if they want to reach us on twitter. guys report or kaiser report dot com it looks like bio.

vanity and by north it's so many people because a cop beat him is so boring that even such a bad cop be sending. i'm not guilty anybody and. i'm here to find the next guy. looked up live again in the human being done the unfelt to feed the dog she went down panty and dumped. the clicks and moved for the c.e.o. thing to the deflection boards are pretty safe. that is a god given that i got after many answers. he and others are going to going to hear a lot about that on the board

a lot where. you can buy a gun you probably get nothing like a. long long while and then you'd also want to bottom there's a famous french airline control glottal. and one new person and led to me move 100 gandhi a new low i'm going to run the place 1st be able to keep you know you can go to mach you lend him and join you. the world is driven by shaped by one person. no jerry thinks. we dare to ask.

them to follow and that comes out of a war. of the sort of one among one of them. a product from a t.v. way too high is not the high i might. have thought this month when put to the office and shown. for the photo to the muslim youth a lot of those. then

it is someone that would do bore. me. a massive anti beijing protest in hong kong turned ugly with a police officer firing and lined brown and demonstrators throwing acid and peace officers. off of the tower 2020 u.s. presidential hopeful joe biden's team demands news networks stop giving air time to donald trump's lawyer accusing him of spreading lies about the former vice president we asked new yorkers that when he joined me should be banned from their t.v. . chilling on he should be able to speak as biden should be able to refute any any churches they try to shut out.