hook me up with $10 million of enron stock. since i'm borrowing them, i'm going to take them and go out and sell them in the open market, get the $10 million of proceeds myself. in the future, fight over those shares back to the brokerage firm. i'm betting if they fall from $100 to two dollars, when i have been vindicated, i can go back and close the short position by buying all the shares back. hi pocket the difference between $100 and two dollars. the difficulty with that is let's say you buy a stock. the most you can lose is what you put into the stock. i by $1000 of the stock, that's all i can lose if it goes to zero. the short-sellers can just keep losing money if they are wrong. tesla. there was no shortage of short-sellers two or three years ago. we think it is a scam. he's not going to make money on cars. i don't trust his financials. the problem is when they were shown to be wrong and tesla is turning a profit and suddenly added to the s&p 500 index, all the skeptics have to cram back into the room and by the stock bac

story we're following for you at least 2 people have been killed and several others injured in the enron after police fired live ammunition to disperse protesters in the city of mandalay the protesters were repeating a cold front end to a military coup that took place more than 2 weeks ago. your update this hour up next for porter where we meet a man keeping a remote village in russia connected with the outside world i try and say that i'll be back with more news at the top of the hour until then there's always our website dot com you can follow us on social media as well as the news i'm rebecca racist thanks for joining us. why are people forced to hide in trucks. i've lived there are many reasons. and there are many answers. lists and there are many east.

so suddenly you lose faith in the ponzi scheme and like bernie madoff one day it just blew apart or enron remember it was going great for a few years and then one day it just blew apart hyperinflationary collapse of the u.s. dollar is happening right now against bitcoin it's happening right now people it's not in the news because it's scary like if you were to say oh my gosh there's a tsunami coming and the people on the beach would say that's too scary selected a process that information is just too scary and then they just sit there on the beach and they get swept away everybody is not prepared for the tsunami of hyperinflationary collapse against the u.s. dollar stopping 2021 will get wiped away as swiftly as they did in the tsunami the only escape valve as christine lagarde calls it is bitcoin she called it i believe christine legarde she said your escape from the catastrophe that i christine created is a good one for a catastrophe market that mark falak had mentioned in the last episode and i just think it's it's interesting to observe that the 2 bluest most elite states in america c

it being we are actually the money is going on and mr minister i think let's turn now to $1.00 of enron coms big promises when he came into office and that is to stamp out corruption the anti corruption agency the national accountability appear on the an a b has arrested around a dozen politicians from the opposition since then how many have been arrested from your party why would anyone who would have been arrested from my party it was all have no iraqi an interest are in the. top if there's any you should point out who should be arrested from our party. well let me tell you what the supreme court of your country thinks about your handling and how you're approaching the anti corruption campaign and a stinging decision last year the supreme court said that the anti corruption body the national accounts ability bureau is selectively applying its laws on individuals when it detained 2 opposition politicians for 15 months without credible charge your top bar association goes one step further to say it's a tool for arm twisting of political opponents. so how can you say that the anti corrup

bet it being we are actually the money is stable no not a minister i think let's turn now to one of enron coms big promises when he came into office and that is to stamp out corruption the anti corruption agency the national accountability there are only an a b. has arrested around a dozen politicians from the opposition since then how many have been arrested from their party why would anyone who would have been arrested for my party it was all have no iraqi an interest in the. point if there is any you should point out who should be arrested from a party. well let me tell you what the supreme court of your country thinks about your handling and how you're approaching the anti corruption campaign and a stinging decision last year the supreme court said that the anti corruption body the national accounts ability pirro is selectively applying its laws on individuals when it pertains to opposition politicians for 15 months without credible charge your top bar association goes one step further to say it's a tool for arm twisting of political opponents so how can you say that the anti corrupti

it being we are actually the money is going on and mr minister i think let's turn now to $1.00 of enron coms big promises when he came into office and that is to stamp out corruption the anti corruption agency the national accountability appear on the and maybe he has a restaurant a dozen politicians from the opposition since then how many have been arrested from your party why would anyone who would have been arrested from my party he was also have no iraqi missile site in the. top if there is any you should point out who should be arrested from the party. well let me tell you what the supreme court of your country thinks about your handling and how you're approaching the anti corruption campaign and a stinging decision last year the supreme court said that the anti corruption body the national accounts ability carol is selectively applying its laws on individuals when it detained 2 opposition politicians for 15 months without credible charge your top bar association goes one step further to say it's a tool for arm twisting of political opponents so how can you say that the anti corrup

general antonio good terror has called for global ceasefire as a coronavirus and that may come in the enron. director of operations said there was virtually a land invasion of gaza in the past few days. well this is something that happens on our i mean to them. it's out in space it's a free for all as a. piece of palestinian territory and people as an under its own control and they can do whatever they want to get away with it and as i said that's why they do not the world is not in atlanta to talk about the ceasefire this year and that in places where there are 2 or so or civil wars are ended and the list and it is an ongoing occupation which is an ongoing activity action and the question actually so is it and doesn't think at least that there is no ceasefire going to listen is are not shooting it's is that is in a state of occupation and aggression and that doesn't see why it should stop otherwise it at all in order to hold israel to a counter and occupation they will demand stopping the settlement activities beginning dismantling settlements started doing stop killing stop has the militi

rationale of the go sheeting with people they just criminals who i say were said to be emboldened by enron some want to go see issues between them and government officials. armenia's top army general is at all this with the government the president is refusing to fire him even though the prime minister has publicly called for his dismissal prime minister nick called passionate man and called on the president to fire colonel general on a guest and after accusing the military of an attempted coup the prime minister has faced growing calls to step down since november that's when protesters say he betrayed the country by ceding land the to end a 6 week war with azerbaijan robin forestay a walker isn't yet a van and says protesters think authorities are on their side it is definitely a sorry supports from the political institutions is waning in media full nickel pressure on the prime minister and the opposition who know. every every day of late calling for his resignation said that this was a victory of sorts for them and they even say now that they're hoping that the police and the other secur

rationale of the go shooting with people they town just criminals who i say were said to be emboldened by enron someone who goes issues between them and government officials. if you open officials are being accused of carrying out a systematic campaign of ethnic cleansing in the region of to grey allegations so in a us government supports reports obtained by the york times and says fine to see back prime minister moving from time to time pushing out to graham's and seizing intimidation and violence. if european launched a military campaign against a close regional government and its solid fighters in the both sites have been accused of atrocities william davidson this international crisis group's ethiopia researcher he says the conflict is field tensions about land rights. during the early stages of the war. the federal forces intervened in the west integrate they were accompanied by forces from the neighboring region including some irregular militia that was part of the military campaign to oust the greys regional government but many of those am horrified actions also have the intention of rec

it has uncovered scandals like enron.ing to see if any actual regulation comes out of this moment in time. emily: and quickly, gamestop closing $44 a share today. the ceo resigning. do we know why? katie: not certain why, but it was interesting to see that stock moves so much after hours after that move. i mean, there's still the fundamental backing, you have activists joining the board. so we will see as the market gets a chance to react to that once they open tomorrow how it shakes out. but definitely some very interesting breaking news out of gamestop. emily: something we will continue to follow. katie greifeld, thank you so much. that does it for this edition of "bloomberg technology." we have daybreak asia coming up next. i am emily chang in san francisco. this is bloomberg. ♪ is bloomberg. ♪ haidi: a very good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia. our top stories, asia looks to extend optimism on wall street after reassuring fed comments on reflation and growth.

of the biggest frauds ever that saved investors tens, hundreds, countless billions of dollars from enron to valiant to martin -- forgive me for not saying his name. they had information to the marketplace where the stocks are being touted. they're planning to gear up right now. listen, neil, as i talked to the hedge fund executives and they're a lobby group called the manage funds association, which will be heading this effort, they were telling me, listen, we knew something would come down against us given the makeup of congress. now that it's democrat. you notice elizabeth warren, the progressive democrat from massachusetts is on the finance committee. what we department know is what the triggers of that would be. it's this whole thing involving robinhood, gamestop and red did it and they feel it unfair. they had nothing to do with the speculation and the promoing of these stocks where some of these people will lose money as it closed below $100 a share today. somehow hedge funds were involved shorting the stocks. should point out the problems with gamestop, blackberry and some of the

my summer at enron. - wow, that's not such a bad idea. - great! - anything else?se. - keep. - there's a bunch of sent emails that just say "delivered." sh- i want to keep thosee? so i can see what i sent. - that's why you have a "sent mail" folder. - keep. - there's about 30 news alerts from "nip slip" - for what? - "nip slip." - oh, okay. i don't know how those get on there. - well... - must be hackers. - ooh. - [knocks on door] hey. what's up? - whai had doned you the worst thing ever, would you still want to be my friend? - did you murder someone? - worse than that. - oh, my god. - lurk much? i miss pam. - is that what we're going for now? "okay"? we used to go for "pretty good." - great. hey, how do you feel about starting an employee of the month program? - yeah. you know what, that actually might make me feel better. i'm not in this for the trophies, but-- 'cause you can't be employee of the month, you're a manager - well, technically, i am a co-manager. and i barely have any responsibilities. but i work hard, i love this company, and for those reasons, i th

but it is true that short sellers sometimes uncover things that are going on at enron is the companyellers helped and that's great. very frequently it also has another side the role to take is to provide as much transparency as possible when people come on the show you now disclose whether they hold positions in the companies they're talking about. i don't know if that's regulatory or cnbc's ethic polic policies if a hedge fund puts out a report, they need their position to be disclosed. it's hard when people are tweeting about stocks. or on reddit the government does need to play a role in evaluating when people or institutions are manipulating stock prices stock price manipulation is a real thing that the s.e.c. and other government bodies regulate they need to continue to do that and, of course, they need a budget to do that. the regulators are stretched very, very thin. >>> spencer, i wonder if you have a sense yet of what the lesson is from this latest moment that we're in driven by reddit because when i look at wall street bets this morning i see a situation where there are a l

goes back further than the 1990's, but a sers of fateful decisions were made in the late 1990's when enronst from the past, now-defunct but this scandal plagued energy company headed by the late can lay, lead successful push under then governor george w. bush to radically delay girly -- deregulate the electricity sector. as a bottom-line line, decisions about the generation and distribution of power were stripped from regulators in texas and handed over to private energy on the basis of this logic what is good for industry will be good for everyone else, prices will be lower, axum competition. so you have all of these private players competing with each other and they are independent from the rest of the grid. i see some really interesting parallels with what has happened with covid. handover essential functions of the state to private companies, whether health-care companies were energy companies, what they seek to do is make maximum profits and you do that through "efficiency." what does it mean in practice? to take out all of the slack in the system because you are bringing out profits

like gamestop, but also against france like the infamous -- also against frauds like the infamous enronshort sellers helped take down 20 ars ago, by exposing its phony accounting. financial analyst james early. >> shortsellers, they find the bad stuff, the dirty stuff, the frauds, the scams. they protect investors. paul: which brings us back to the reddit flash mob. yes, they successfully ran up gamestop's stock price, which squeezed the short-sellers. >> but this is also incredibly risky because people in the community can start selling gamestop and the prices can start going down. people who bought at the height of this thing are going to end up holding the bag. paul: this past weekend, i put two last questions to grandson joe, until gamestop a remarkably savvy investor. when are you going to get out? >> ias initially going to get out at a thousand dollars a share. however, i've revised it to four hundred dollars a share after it hasn't soared as much as quickly as i thought it would. paul: $293 is what you spent, let's say it goes back to eighteen dollars a share, how are you going t

he uncovered the enron scandal many years back and many more, and also this is where it's interestingtand, he didn't reach out to biden himself. he did talk to white house economic aides about the need for short selling. alsod tried to shoot down a proposal by vlad tenev -- remember, the reason they had to stop some of the trading is he didn't have capital to settle the trades, and it takes two days to settle the trades. liz: yeah. >> -- even more capital. he wants immediate settlement. what jim said to the white house is simply this: if you have two-day settlement, first of all, you'll have a lot of back office problems because these firms make a lot of mistakes, number two, you won't have short selling because it takes a couple days to locate stocks to short. now, why do we need short selling out there? here is simply -- liz: amazing. charlie, amazing, can i just tell you that the stock opened at $44.70 today. it was halted -- >> okay. now, this is why -- liz: -- halted again and it's still halted. >> this is why we need short selling, okay? gamestop, based on its fundamentals, is n

thing you're given me a detour they will also push investors small are at risk of touts and valiant to enronhort-sellers uncovered and saved a lot of people money. in terms of real-time clearing i'm not an expert playing in the markets. obviously blat is not a expert playing at the markets either, he would not about the issues and caught off guard by will happen. i don't think he did anything wrong, i think that's why they locked on the trading because they did not have enough capital for the settlement so i'm just saying this is a very complicated thing there is an ipo for robinhood that they planned and bloomberg said they're still planning on doing it. i reported yesterday it's on hold i still believe it's on hold until they get through this. here's the thing i say on hold they have to get through this first. what is this the regulatory scrutiny and congressional scrutiny, navalny is going to be called before congress. just think about the ipo by your before a congressional committee. that usually does not happen. liz: not going to happen. not the best timing. the only difference between

if you think, if you think, neil, back to how bad enron was behaving and other companies that have been caught in fraud situations, at the end of the day the politicians will have to say, you know what? short sellers are really good. they're a good backstop. they're a good check and balance to use "politico" words on financial markets. there is something that is needed. again they're going down the wrong rabbit hole because there are, everybody who was in this chat room, everybody, big, small, in between, they all knew what they were doing. so, as far as the lawyers are concerned, you poll any securities attorney they will tell you how difficult it is to prove intent, even when you're dealing with full social media exposure, you can find out hot people are behind the bots an everything. this is going to be, i'm going to pull a janet yellen here, like watching paint dry. the politicians will get what they are asking for. neil: sometimes i have watched paint dry -- beforehand, it is not awful, awful. but, dan, let me get your take what is at stake here. a lot of people were pushed to the

but you're right, unfortunately the texas energy market is the market that gave you was enron. so you've got to watch what happens with the suppliers and the providers there and it looks pretty much like there was price gouging going on and people are starting to get these energy bills for over a thousand dollars and i don't believe that the people of texas should have to pay these outrageous bills. the state government is going to have to step in and basically hold people harmless, in other words, make sure that those exorbitant costs are not passed on to the customer here. i think they're going to see there's going to be a movement throughout texas of people who are liberal and conservative and across the political spectrum who are refusing to pay $2,000 when for two days they didn't even get power and they're not responsible for the poor planning that went on by state leaders. >> i want to loop back to something you said, which is this idea of resiliency that when you have a crisis like this, there is the opportunity to not just build back but fundamentally reimagine a city

customers are going to end up paying for this event in the same way that californians pay for the enronears. and that's because utilities that had to pay for gas and electricity at high prices last week are going to find a way to pass those costs on to their customers even if that means spreading it out over utility bills over the next two decades. >> that's interesting. so your point is even if -- so there is the example of the folks that signed up for this wholesale power, again, a little of a texas quirk can you even do that. there is very high cap on that. so that we're seeing the viral $10,000 bill. but your point is like these companies, the generators and utilities, they pay out of their eyeballs to get power. the they're going to just defray that cost to texans for years. >> that's probably what's going to happen. we'll have to see how it plays out over the next few months. there is reporting today, the federal regulator of energy has opened up two probes. one into potential market manipulation and the other into climate change risk and reliability. i wonder how much you think a

traditional utility customers will pay for this event in the same way that californias paid for the enronsis for 20 years, that's because utilities that had to pay for gas and electricity and exorbitant prices last week will find a way to pass those costs on to their customers, even if that means spreading out utility bills over the next two decades. >> that's interesting, so there's the example of those folks who signed up for this wholesale power, which is a bit of a texas quirk that you can do that, there's a very high cap on that, so we're seeing the viral $10,000 bill. but your point is that these companies, the generators and utilities paid out of their eyeballs to get power, they'll just defray that cost to texans for years. >> yep. that's probably what will happen. we'll have to see how it plays out over the next few months. >> there's reporting today that ferc opened up two probes. i wonder how much you think as someone who covers this space this is an inflection point not just for texas but for everyone. >> it's definitely an inflection point. it's hard to say at this point how

rationale of the go shooting with people that just criminals who i say were said to be emboldened by enron someone who goes issues between them and government officials. ethiopian officials are being accused of carrying out a systematic campaign of ethnic cleansing in the region of tea tray the allegations are in the u.s. government reports obtained by the new york times and says fine says he backs prime minister of the modes are moving from time to time who should not to grain season intimidation and violence in field. launched a military campaign against separatists in the both sites have been accused of atrocities william davison is the international crisis group's ethiopia researcher he says the conflict has fueled tensions about land traits. during the early stages of the war. the federal forces intervened into west integrate they were accompanied by forces from the neighboring region including some irregular militia that was part of the military campaign to oust the greys regional government but many of those and horror of factions also have the intention of reclaiming what they see

call it the texas enron way. but those choices, that deregulation has led us to where we are now.ay warm, safe, and alive. and yet, even in the face of that kind of despair, one texas politician says that texans would happily endure more nights of freezing agony rather than welcome federal oversight. and that is next. sight. d that is next mornings were made for better things than rheumatoid arthritis. when considering another treatment, ask about xeljanz... a pill for adults with moderate to severe rheumatoid arthritis when methotrexate has not helped enough. xeljanz can help relieve joint pain and swelling, stiffness, and helps stop further joint damage, even without methotrexate. xeljanz can lower your ability to fight infections. before and during treatment, your doctor should check for infections, like tb and do blood tests. tell your doctor if you've had hepatitis b or c, have flu-like symptoms, or are prone to infections. serious, sometimes fatal infections, cancers including lymphoma, and blood clots have happened. taking a higher than recommended dose of xeljanz for ra ma

is jim chanos, close associates -- if you know jim, he's like the guy that, essentially, called the enronhanos has made the point that if you get rid of short selling, all you're going to do is hurt the small investors. this is chanos' position. agree with it if you want. i agree with some of it. the stock market has far many, many more touts than it does people attacking stocks. often if you don't have anybody giving the negative view, people will just think tesla, for example, is going to the moon forever and never has to improve its cars or its production. short sellers called tesla out on that and said they were close to bankrupt. tesla got its act together because of the amount of immense pressure by short sellers. and these are some of the arguments that chanos, from what i understand, is making to the white house economic team. i can't tell you if he's going the persuade them, persuade congress. he does have, from what i understand, he's making the same arguments as some selective people on the hill. he's also a making the argument that to if you change the settlement time, everybo

we can go through the list of frauds and the big ones, the enrons, the world comes, the wire cards iney put the whistleblower in jail before they realized he was writ right and the whole thing was a fraud. it's very important to have this balancing force out there to keep the investing public out of being defrauded of their precious retirement savings. >> yeah. but there is a distinction to be drawn here in the case of gamestop, and we are watching the shares collapse now. the argument was not whether gamestop was a fraud nobody was claiming that's the case it's not the argument was about valuation, about whether the stock price actually reflected the real prospect for the company or whether it was perhaps inflated, and there were a lot of people who moved into those shares and shorted them on the belief that they weren't you know, sometimes that can be viewed quite negatively. sometimes it appears short sellers are getting together in a way to create what we call a bear raid. you know, you can have arguments about valuation and sometimes short sellers take it a bit too far, or no >>

forth with you i know you were doing it i was doing it different networks at the time you remember the enronhere they forced people to go buy into that market? you remember that? >> i do. >> it was, like, that sort of gamestop-ish well, the same thing is happening now. i just got a text from an electricity trader, which there are not many by the way. there was just a trade done ercot north. $8750 per megawatt hour. a normal contract for march is 40 >> what is going on? there are, obviously, shortages, but what is happening in the market there who would be willing to pay that kind of a price? >> anybody who has to. so that trade just occurred. it was one trade, but you think about that, guys 8750 megawatt hour versus a normal contract is 40. who is going to have to pay that i don't want to speculate, but i will say this. i will be careful what i say, david. there are companies out there that sell you, you own the faber household and they will say why don't you forget about your normal power company, come with us for a fixed rate, you pay what we pay. and they will go in the wholesale market a