Feb 11, 2021. One classmate, the journalist Elie Mystal, had a lot to say about Mr. Levine as an undergraduate that he was the valedictorian of their class; that he partied, too; that he once suggested applying Etruscan decision-making processes to the question of what to do next during a late night out but he placed a special emphasis on the footnotes. Money and stuff. Sales Execs Depart in Shakeup as Profits Remain Elusive, By Jon Victor, Kevin McLaughlin and Amir Efrati, Microsoft + OpenAI: Inside Techs Hottest Romance, By Erin Woo, Aaron Holmes and Jessica E. Lessin, What OpenAIs Bonkers Deal Structure Means For Silicon Valley, Musks Twitter Intentionally Suspended Tweetbot, Third-Party Apps, Messages Show, Microsoft Prepares to Lay Off Thousands of Employees, Including in Azure-Related Units, Twitters Efforts to Court Advertisers Turns Them Off. 1. A bond plus CDS should be a (credit-)risk-free combination. Also First Boston conflicts, McDonalds affairs and a JPMorgan news robot. 103 Production . ext. Twitters ad business is not recovering. So whereas the basic model of Coinbase is they buy Bitcoin for you and put it in an envelope, the basic model of FTX has to be they lend you money to buy crypto and then make use of your crypto to get the money. In financial terms, they have to rehypothecate your collateral; you cant expect them to just keep it in an envelope if theyre lending you the money to buy it. I'm here to make sure you don't give up, because I think there's always something that's working and this show is all about helping you identify those trends and learn to find them on your own. Lets accept, for the purposes of this essay, that founders and venture capitalists are engaged in a simple trade. Levine's analysis in his column have been widely covered by other newspapers. A few months ago, Matt Levine, Bloomberg's ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. by Paul Ford, earlier) . ext. 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(The liabilities are dominated by $7.4 billion of loans.). Also private-market marks, ransomware ethics, Coinbase KYC and Celsius crypto ownership. Matt Levine runs the " Money Stuff " newsletter, one of the most irreverent and informative guides to the absurdities of the financial world. And they both pay you interest. It is concerned with western North American region mysteries, but the conference itself travels worldwide, having been held in Canada and the United Kingdom, as well as different parts of the United States. It is not a plot-driven novel. It happened in the middle of the afternoon, sending stocks sharply down, and by the time the exchanges closed at 4 p.m., many financial news outlets were still struggling to explain why. You won't have to worry about missing anything. How Is That a Good Thing? I write the Money Stuff newsletter at Bloomberg Opinion. Matt Levine would like you to know that Elon Musk does not actually ruin all of his vacations. The worst outcome is that you dont have enough capital, you go bankrupt, and Customer B does not get his money back. Billionaires read Money Stuff. Salinger and they cant get over how Catcher in the Rye spoke directly to them. Here's a recap of the clues on Master Minds (Season 3) for Thursday, January 12, 2023 with host Brooke Burns. He makes readers feel in on the savage joke that is late capitalism. As you can review in our publicly filed, audited financial statements, we hold customer assets 1:1. FTT goes down, leaving FTX undercapitalized, leading to customer withdrawals, leading to ruin. Matt Levine's Money Stuff: Not Everything Is Insider Trading - Bloomberg. Theres never a situation where customer funds could be confused with corporate assets. Money Stuff. Do you think that there is a big financial firm in the US that got through the entire pandemic without any employees doing any business over WhatsApp or text messages from their personal phone? It is called The Crypto Story. The idea of leaving Wall Street for a precariously capitalized blog would probably strike a lot of financiers as romantic, quaint, even idiotic. If you think of the token as more or less stock, and you think of a crypto exchange as a securities broker-dealer, this is completely insane. On top of that, US regulators are circling FTX, investigating whether the firm properly handled customer funds, as well as its relationship with other parts of Bankman-Frieds crypto empire, Bloomberg News reported Wednesday. published Jan 18, 2018 8:39:36 AM, by Matt Levine (Bloomberg View) - Hovnanian. Im doing a bit, he says. But it sure has been a distraction! (Asked about the Etruscans, Mr. Levine said he thought Mr. Mystal might be referring to one of his favorite anecdotes from Herodotus. Stock Sniper Might Have Pumped and Dumped. Addded Sep 28, 2018. I just hope he doesnt get poached by some deep-pocketed mainstream news organization which will end up stifling the very thing hes best at.. The analogy is: Imagine a weird sort of bank. Download. In August, Musk had said he was done offloading Tesla stock and that it was important to avoid an emergency sale of the shares in case he was forced to close the Twitter acquisition and struggled to bring in additional equity partners. He is doing exactly what he has long wanted to do. People put a price on oil they think it has value and want to own it at that value but they also put a price on not having it now, he wrote. Commodity futures need to be standardized and tied to a physical delivery point, which in this case was overwhelmed, wrote one publication. Mr. Levine says the book may have changed his life. It is an FTT whale, and FTT is now worthless. Please Click the Donate button and support BeSpacific. Sabrina is also the solo Editor, Publisher and Founder of, Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002, Searchable Database Over 45,000 Postings. [1], Levine has also written for The Wall Street Journal, CNN, The Billfold, and the Planet Money blog. (He also says that if he were to take more time to write, hed use fewer words.). Matt Levine is a finance columnist for Bloomberg Opinion . Its neurotic, commenting on the nature of modernity itself. Hes a very smart guy who is very much not a lawyer, and that is very fruitful, Levine says. I write about finance for Bloomberg Opinion. A few months ago, Matt Levine, Bloombergs ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. Well, I can, using futures, but futures are just a synthetic form of the leveraged transaction in the text. The more people who sign up for accounts, and the more they trade, the happier Robinhood is. Today's Master Minds: Mark "The Beast" Labbett, LaKedra Pam, Ryan Chaffee. but it is a lot like stock in FTX. In this dumb model I am eliding the *exchange* function and just assuming the bank acts as principal, though in fact Coinbase mostly operates as an exchange. Any institutional lending activity at Coinbase is at the discretion of the customer and backed by collateral. His column discusses current events in corporate finance and market. articles a month for anyone to read, even non-subscribers! "I write a lot about people who have gotten in trouble with the SEC or the Justice Department. If I short Bitcoin at $20,000 via futures and put up $4,000 of collateral, that is a leveraged trade; if Bitcoin goes above $24,000 then my collateral is gone. Most classically, they borrow short to lend long, taking checking deposits that can be withdrawn at any time, and using them to make long-term mortgages. [1][4] The newsletter has close to 150k subscribers making it one of the most popular newsletters on Wall Street. Financial regulators are looking at the biggest private equity firms use of WhatsApp and other messaging apps for work, in a signal that the US is ramping up its push to police Wall Streets electronic communications. 6. Today's episode title: "Trivia, Smarts & a Drumline". Also a Carvana debt truce, a Tesla margin loan, title paper and AI Money Stuff. For the rest of you: Money Stuff will be off tomorrow and Monday, back on Tuesday. Log in to access all of your BLAW products. This is Matt Levine at Goldman, and also Matt Levine at Goldman.. Never miss an update. Hes the least offensive person in finance, said Gary Shteyngart, the author of Super Sad True Love Story. When Mr. Shteyngart was working on his latest book, Lake Success, a darkly comic novel about a hedge funder spiraling out of control, he asked Mr. Levine to review a draft for accuracy. The business model of real-estate companies is pretty much, you borrow a lot of money, you use it to buy buildings, and you rent out space in the buildings to tenants. He was of the place, and he found its workings genuinely interesting. The attributes of this token are, like, it entitles you to some discounts and stuff, but the main attribute is that FTX periodically uses a portion of its profits to buy back FTT tokens. The popular messaging app Telegram has brought in so much money from a small group of private investors that it is calling off a planned sale of cryptocurrency to the wider investing public, according to a person familiar with the matter. February 4, 2016. 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Before the price of Bitcoin drops too far, you will be calling up Customer A for more margin, and if she doesnt answer the phone you will liquidate her position to pay back the loan you made. But FTX doesnt have their money; it has FTT, and a loan to Alameda. He is an experienced journalist covering Wall Street, and is also one of the few people in the press who can both understand and explain complicated economic issues! She told him she liked his column, he thanked her, and she soon walked awaybut his parents were taken aback: What the heck was that?, Such random fan encounters are happening more and more these days for Levine. JPMorgan Says Frank Was Fraud. When I was an investment banker, one thing that I did was pitch convertible bond offerings to companies. But the other weird thing about this bank is that, every day, you come in and say hey Id like to exchange my dollars for euros or my euros for pounds or whatever, and each time you do that the bank charges you a dollar. If everyone takes their money out at once, you have the money. But it is also a crypto token, which means that a customer can come to you and post $100 worth of FTT as collateral and borrow $50 worth of Bitcoin, or dollars, or whatever, against that collateral, just as they would with any other token. You know Im good for it: If I dont pay you back, you can sell my Bitcoin and pay yourself back from the proceeds.. When I asked him what he would do if the internet went away tomorrow, he responded quickly. Apple announces updated 14-inch and 16-inch MacBook Pros with M2 Pro or M2 Max, Wi-Fi 6E, 8K HDMI, up to 96GB of RAM, and more, starting at $1,999 and $2,499 Apple today announced the next-generation 14-inch and 16-inch MacBook Pro models with faster 5nm-based M2 Pro and M2 Max chips Also profitable nonprofits, FTX assets and WWE governance. All Rights Reserved. Have a large reserve. 4. Why dont you lend me $10,000 so I can buy $20,000 of Bitcoin, so I can get more excitement? This is called a margin loan. Learn more about a Bloomberg Law subscription. [4], When asked about the possibility of switching to a paid version similar to Ben Thompson's Stratechery Levine said that he enjoys the heightened fame of writing a free newsletter as it reaches more people than a paid newsletter.[6].
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