YouSaid · the spoken record

Steve Eisman

lines on the record: 61
first: 2023-06-16
most recent: 2023-06-16
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“If you care about banks, really? Is it really a store of value? How could it be a store of value when it goes up and down like a yo-yo every single year? Currencies don't do that. People who trade currency, a 10% move in a currency like the dollar in a year is extraordinary. So people who trade currency, the only way you can make money generally is to leverage yourself enormously. You can't have a currency that's a store of value that goes from 20,000 to 50,000 to 20,000 to 25,000 in between. You're going to the bathroom and coming back. So I don't understand, honestly, somebody should tell me because I just don't understand the social utility of Bitcoin. Again, other than money laundering. That is excellent.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Store of value I knew would come to me about it. I was having a data retrieval problem, a store of value. I heard this from a bunch of people. It's a great store of value. And my response to that is really...”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“So then the thesis was that it's a way to hedge against the debasement of fear currency. So the problem with that thesis was And still is that if that's the case, then Bitcoin should go up when everybody's freaking out about the stock market and freaking out about inflation and NASDAQ is down and people are freaking out about the stock market. And that's not how Bitcoin acts. It goes up. I actually calculated this. The correlation over the last several years of Bitcoin and Nasdaq is anywhere from 40 to 65% depending upon what time period you're talking about. That thesis can't be true. So Bitcoin in that sense is just another warm form of speculation. The latest thesis that I heard, because people don't give up, is it's a form of, what's the word?”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Is it good for anything else other than money laundering? So at this point, it is certainly not good for transactions in the real world because the cost of it is just way too high. Now, the people who argue that one day it'll be cheap enough to do, I have my doubts because Do you know how much money goes over the rails of Visa and MasterCard per year? It's like two trillion. You know how much Visa and MasterCard charge per transaction? Ten basis points. So I think assuming that these coins really exist in terms of the real world, it's going to take a very, very long time for there to be enough volume, for there to be cost efficient. Until then, it's mostly going to be about money laundering. So what else is it good for? So people keep coming up with new theories. So obviously it's not good for transactions.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so So, as I like to say, not that I feel that strongly about it. So there are two issues about crypto. Is it actually a currency? And number two, what's it good for? So personally, I have my doubts that it's even a currency, but let's push that aside. What's it good for? So one thing we know for certain what it's good for is money laundering. That we know for certain.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, I am. I mean, the problem is that And I don't say this pejoratively at all, but people who have a very environmental bet, not bet, bent. Don't want any non solar to be built. But the problem is that to get from here to there, you're going to need a bridge. So they fight any permitting. But the problem is you can't wave a magic wand and electrify every single car in the United States. So that's a real problem. I don't know how to solve that other than this administration has to really push through shorter permitting.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“The issue really is at this point that to actually do something with the federal government money takes a long time. Now, whether they can shorten the time, that's very important. But it's more of a time issue, I think, at this point than a competence issue.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I know they got in line. There are 50 alpha males with tens of millions of dollars in the bank. I used to be an alpha male. I'm not. I'm a beta. And don't ask how I got there. They're all waiting in line, and a woman comes out who's probably like a teller. I mean, literally, and she comes out and she says, I know you're all here to get your money, but unfortunately the bank has just been seized by the federal government and we can't give money to everybody. So the first guy in line starts screaming. And he says, I'll clean it up. He goes, I want my F&50 F and freaking million dollars. And she says, sir, I just lost my job. And he starts screaming. I want my 50 f and freaking finger million dollars. And that guy could have learned a lesson about diversification. Because if he had, he wouldn't have been there.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“You got to be diversified. I mean, I'll give you an example. So I have a friend who runs a VC company, and the Thursday of Silicon Valley in the afternoon, he freaks out. He goes online, and he pulls all his money.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Because everybody would know that if the next bank Eventually we'll take away the deposit insurance. And if your bank fails, we won't guarantee you. Maybe we put another guarantee ball in the pot.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Literally have no standing to sue, but given the composition of this court they're basically not going to care. So I think the case is going to go against the Biden.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, look, I will just tell you putting out my lawyer hat, Supreme Court's probably going to rule that what the Biden administration did is not kosher. But I actually think that the people who are suing.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, I'm not president of the United States. Go ask the last several presidents what they didn't spend money on this, but they didn't.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“We haven't spent money on it in generations. Ever noticed, you know, when was the last time? Put you this way. In the New York metropolitan area, every highway, every parkway, every bridge, every park was built by Robert Moses. You should all read the book by Robert Carr and Robert Moses. It's superb. That's the 30s, 40s, 50s, and early 60s. That was the last time the United States really spent a ton of money on infrastructure. Our infrastructure is just very, very old.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think general reshoring is going to take time Factories aren't built overnight. I still don't think there's probably a reluctance by companies to bring all of their shoring back to the United States because they're so used to cheap labor. But I do think. Know part of the story given all the legislation that's come back is something of a reindustrialization of America, how long that's going to take, I don't know. I think that, like I said before, the biggest story is going to be the grid. The grid is absolutely crucial. I mean, the estimates of improving the grid in the United States, everybody's got a different estimate, but it's like 200 billion, 300 billion. I mean, it's unbelievable numbers. That's going to, I think, going to be the biggest theme.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's an excellent question. Let's assume the regulators do raise the capital requirements for all the banks. It's going to force the banks really to, at least the regionals, to really narrow some of their lending because they're only going to want to make loans where the risk weight is low. And I know that the private credit lenders are literally salivating over this happening because Dodd-Frank under Terullo, who was the vice chair of financial supervision, not only did he lower their leverage by like, he cut it basically in half, but he narrowed the scope of what lending they could do. And that really opened up for the private credit lenders. Assuming that happens again, the private credit lenders will have even more room to play.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, they certainly could. I mean, it's so easy to pay stuff with Apple. Yeah. So, I do think Apple's already making inroads, how much farther they want to go, I don't know. There's the Apple credit card that's run by Goldman Sachs. I don't think Apple's ever going to really make a bigger inroad in the credit card business. The payments business, probably.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“The problem with making a big case for higher unemployment is if there's a shortage of labor. This is a little bit of the revenge of the middle class. So, you know, the 2008 crisis destroyed the lower middle class and the middle class. Here, the layoffs are in Tech and Wall Street. The middle class is actually doing quite well. I mean, what would cause a real uptick in unemployment? Look, if the Fed keeps raising rates and the economy really starts to slow down, there'll be some layoffs. Do I think they're going to be very high? I don't because labor shortages are still so important. People may want to warehouse their employees.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“There's this construction there. You know how long that construction's been going on? 12 years. Like 12 years. I could have done it myself faster. Like, what's going on with that?”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Know that's going to take years to do. But so stuff like that is the infrastructure stuff in the United States is pretty pathetic. Now, I remember years ago, maybe like 12 years ago, I had a conference in Hong Kong. It's like flying, the airport's completely new. You could literally eat off the floor. You get into a car, you get onto a highway. It looks like the highway was just built yesterday. You go over a bridge, you go, did they just finish this yesterday? And then, you know, you go to this wonderful hotel and then you come back to the United States and you go to JFK and you're embarrassed. Like this is the United States of America. It's unbelievable. Then you get on the Van Wick and the Gren Central Parkway. And it's, I mean, it's just unbelievable. By the way, have you noticed that when you're driving to JFK where the Grand Central meets the Van Wick?”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll give you an example of what we saw, the utility in California, I think it's PCG, there's a strict liability rule in California that basically says if PCG causes a fire and is only partially responsible, they're completely responsible. The old CEOs of PCG weren't too good. The new CEO was superb. And so she's embarked on this plan to basically bury all the wires of the company. Think about what that means. This is not Rhode Island. This is California. That's a lot of wires. Who's doing that? Quanta.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, it depends. I mean, I'll just give you one stock, which hopefully Newberger won't shoot me tomorrow about. So we've owned a company for a while called Quanta. We have it in most of our portfolios. So Qanta is a company, you know, utilities don't do anything. Somebody has to build the utility. Someone has to manage the wires. Somebody has to bury the wires. So Qanta, prior to all this grid stuff, used to sell it 10, 11, 12 times earnings. But because all the stuff involving infrastructure, the opportunities for the company have been enormous, so the stock has been revalued. How often does that happen? Not that often. But when you have the potential to do something like that, you go all in. But it requires a lot of work.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“And their companies are coming to Newberger. I go to the meetings. I do some research on individual companies. Trading day ends, you know, there might be some more to do when I go home. That's my day.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I actually don't think there will be, I mean, look, if we go into some kind of recession, I think there will be a normalization of consumer credit. I don't think the consumer is over-levered. There's really no subprime mortgage lending in the United States at all. There's very little subprime credit card lending. There's some subprime order lending. But whatever problems happen, there's not going to be, I think, in the consumer area. Like I said, there'll be normalization. loan loss provisions in the banks will go up. It's not a calamity. What's going to happen in high yield, office, et cetera, but those problems will be, you know, for example, the office will be concentrated in CMBS and in certain regional banks. So it's going to be more concentrated as opposed to systemic issues.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I haven't done enough work on this, but people that It's very problematic because, I mean, I'm sure some of you have seen Blackstone and Brookville. I mean, these are not small companies have given back the keys for some of their pretty good buildings because they know the debt's going to come due in a few years. They know what the cash flow is going to be, and they can't support the cash flow. So they're giving the keys back. So if Blackstone and Brookfield are giving back buildings, how's everybody else going to be? There are what I'd call AAA properties in New York City. I don't know San Francisco as well, like one Vanderbilt. But after that, after a couple of buildings that are like that, I think the rest are problematic.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the problem for you is that when your debt comes due, then you got a problem. Until then, you could, as we like to say, extend and pretend.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“It's got a blue, maybe it's 2.2 That's unbelievable when you think about it. So, you know, the market has really repriced the public entities, but the private entities really haven't marked down their portfolios there because nothing is trading. About $175 billion of office debt coming due this year and about $150 billion of office debt coming to due next year. If you took out a loan, let's say three, four years ago to buy something and the LTV was 60%, today it's probably 100%. So, I mean, the issue is the refinancing, and I think it's going to be tough.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Mean there's a lot of different categories of CRE. Let's talk about cap rates first. First of all, leave aside fundamentals. You bought something when rates were nothing and you paid a 3% debt and your cap rate was, let's say, three or four percent. And now if you wanted to borrow, you're going to pay 7% or 8 the value of your real estate went down. Period. The area that is the most problematic is obviously office. The areas that are probably the worst are San Francisco and New York. I'll just give you a shocking statistic. I've looked at it the other day. I was stunned. Do you know what the market cap of Vernado is? Two billion.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“They are actually very, I mean, the first submit I was wrong about this. You heard it here first. It's a very surprising thing that the home builders have done so well with rates so high. But there is a shortage of housing. I do think that existing home sales are still fairly low. Everybody employed, and if you have a 3% mortgage, it's hard to sell your house and buy something else if you want to trade up and get a 7% mortgage. But the home builders have been very good at cutting some of their prices, their costs, incentivizing people through their internal mortgage companies. I'm actually very impressed by what they've done.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“What I've heard from some companies, you know, very large banks that really have the best data that consumer spending has really slowed in the last couple of months. The consumer is still relatively healthy because everybody's employed. So you're not going to see like a real deterioration in consumer credit or anything like that until people start losing their jobs. Is that going to happen? I don't know. I think it's probably more likely than not. But until we start to see unemployment go up, you're not going to see a problem with credit. That doesn't mean the consumer is not going to pull in their horns. I mean, you're starting to see that in a lot of different retail companies. I mean, I think everybody saw Dollar General how much that went down because spending was, you know, spending at the lower end is slowing. People are starting to trade down. So it's happening behind the scenes, but it's a little glacial because everybody is employed.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I think people have lived with low rates for so long that it is unimaginable to them that the Fed's going to keep rates high. They just can't imagine it. You know, they were like, oh, the Fed will cut rates in the second half of this year. That was never my position, but that obviously was the position of the market. And that now seems to be going away. But like I said, I like to say you don't think about your paradigm you inhabit it. And one of the paradigms is that we're all entitled to live in a zero rate world. That's gone. Everybody hasn't woken up to that fact.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“So she comes to me basically with PTSD and I promised her I would hold her hand. And so I've only invested a few stocks and otherwise I put her in bonds and treasuries. And I figure after about a year, maybe she'll have the emotional ability to invest in stocks. So look, I think you really have what's also going to come back is catering to everybody's individual risk profile as opposed to just putting 50% of your money in tech.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“He predicted the return of value, not value investing. It's how much volatility is in your portfolio, how diversified are you. You don't want to be too diversified. What's the beta versus alpha in your portfolio? Those are the concepts that I think are going to start to come back. Just as an example, my partners and I, you know, we run separately managed accounts. Everybody's got a different risk profile. So I'll just give you one extreme example. I got a cold call from a woman who saved about a million dollars. By killing herself, basically. And she gave money, I won't say the name of the very large bank to manage her money. And they obliterated her. I never saw a portfolio like this. Every single security she had had a loss.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Are you kidding? People haven't focused on that in the last 10 years. You have been paid to take as much risk as possible. So that concept, which was invoked for a very long time has been people have just stopped paying attention to it.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Adjustment returns means how much return are you generating given every unit of risk? There's mathematical ways to figure out”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“To have an electric oven. Well, if we could snap our fingers and just do that, there'd be a blackout immediately. So, you know, their companies are involved with the electrical grid, there's reshoring, there's greenification, although, you know, the solar companies sell it insane multiples, but there are other ways to play it. And the other concept that I think is going to come back is what I'd call a risk-adjusted returns. Risk adjusted returns have been out of favor because everybody just wants to invest in tech. I think the world's going to be, you know, if rates stay high, I think that is going to happen because I think Volker, Freudian slip. I think that Powell is petrified of doing what Volcker did, which was stop raising rates, cut them a little bit, inflation soars, and he has to go to 17%.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I mean, for example, let's go back to the high revenue growth of negative earnings companies. So they're up a lot this year on a percentage basis. But when you go from 200 to 10 and you're at 14, yeah, it's up 40%, but so what? You know, the large cap mega companies, I think, are investable for a very long time. But after that, it's unclear. And I think, I mean, if anybody gave me their money today, for example, I wouldn't be so overweight tech. I'd be much more diversified. I'd have some God forbid bonds. There's a plenty of other stories other than tech, such as, I mean, for example, has anybody ever noticed that the electrical grid in the United States is pathetic? You've noticed. I don't know if everybody saw there's this new rule that came out from the governor that says every single new building in New York State.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“But I'm going to look at videos of the pure play. And there's AMD. We'll see how well their new chip is going to do. How much is this going to add to the earnings of Microsoft and Google and Meta? Well, it's not going to be as much as Nvidia, obviously, you know, but how much it accelerates the growth rate. I mean, we're really not going to know this for a couple of years because, like I said, it's going to take time to really develop something that's not going to have somebody write a brief where all the citations are wrong. I go back to this over and over again. It's stunning to me. Tracy is lawyer would not read the citation. I used to be a lawyer. That a lawyer would submit a brief where he does not read the citations and the brief is astonishing.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“It's actually not trading at 30 X revenue. It's trading after the most recent, the stock went up 26%, but the earnings doubled. I think the PE got cut in half. So I don't remember where the PE is right now, but it's not insane anymore. It's actually lower than it was before they reported.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“So, other than Visa and MasterCard, who has long-term staying power in payments is never obvious. But the space used to be really, really hot, especially the companies that, again, big revenue growth negative earnings. But what's happened over the last several years is so much capital has gone into this space that they're basically killing each other. And it's not hot anymore. And people are exiting. Is that going to happen to ChatGPT? Less likely because you've got real behemoths that are going to be spending a lot of money. But around the app part, we'll see what happens.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Why don't I give you an example of a group that used to be hot? And it is not the payment space. PayPal, Square, etc, etc. So by the way, I've done payments for a very long time. And I will tell you that every five years somebody comes in and says, I got this thing that's going to completely disintermediate Visa and Mastercard. I swear to God, every five years like clockwork. And two years later, they come back and they say, no.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, you know, I'm not a fortune teller, although some people think I was a fortune teller. But, I mean, that's the obvious case. I don't have any reason not to believe that, but we'll see in a year or two years what's going to happen. This is not going to happen overnight.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, at some point in the next six months or so, it'll probably get rolled out into all the data centers in the country. So the beneficiaries are the people who sell the hardware, the chips and everything connected to the chips. The obvious companies that have the data. And then after that, we really don't know. Does this benefit into it or not benefit into it? Does this help Accenture or Hert Accenture? It's unknown. And we don't know yet who's going to be creating good apps that's going to do very well. So right now the story is very narrow in terms of investing.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, and I mean literally shoot me, okay This tomorrow morning. So, what do I think of NVIDIA? Let me tell you what I think about the whole chat GPT AI situation. As everybody knows, the market's been very narrow this year. If you take out the eight big tech stocks, the market is maybe a 1% or 2%. In terms of Video is selling a lot of chips because everybody wants to get into the act, so they're sort of stocking chips. But what we don't have yet is really too many apps. And so I love the story that was in the papers about the lawyer who had a case that he had to write a brief. And so he asked ChatGPT to write the brief and all the citations didn't exist. That guy's going to be disbarred, okay? Thank you, ChatGPT. So the apps aren't there yet. So right now, you know, this story is just in a few data centers.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“What I think the regulators learned was that you have to be fast. So the fact that they guaranteed deposits over a weekend and seized two banks was very important. So they did learn that lesson, but they weren't looking for liquidity duration problems.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know what? Credit Suisse was in trouble. SVB was in trouble. First Republic was in trouble. Well, this is why it would be hard to enforce. No, but they were actually in trouble. It didn't matter what was being said on social media. So I don't put a lot of stock on that.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, that's true. I mean, part of the issue is that it's so easy to move money today electronically. I think it was a very big mistake by the regulators to allow basically every single VC fund and every single VC company to bank with one bank. That was, you know, reminds me a little bit of the people used to say in terms of subprime mortgages that you got diversification. And so the affair was a low correlation. It turned out it was a correlation of one. This was more obvious that it was a correlation of one.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“San Francisco examiners should have been all over Silicon Valley. I think what the press said was that they went in and they suggested nicely that Silicon Valley start looking into its issues. A regulator should not be asking nicely. They should be telling meanly. But for some reason, that wasn't done.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“Totally different The problem with what you're hearing about the regulators raising capital requirements by 10%, 20%, that's useless because this wasn't a capital problem. This was a liquidity problem. And by the way. No matter how much liquidity you might have, You don't have enough of those to run on the bank. So this is more of a, I think, Examination issue rather than a liquidity issue and a capital issue.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I agree with that. I mean, the problem is whenever these things happen, it seems like the regulators adopt the attitude that if we don't do this, the system's going to burn. You know what? The system's not going to burn. In 2008, that was true. With Silicon Valley really wasn't true, but for some reason the regulators felt it was true, and that's why they acted the way they did. I don't think for what it's worth, that I think that deposit insurance is going to be guaranteeing everything within after the first 12 months.”
2023-06-16 · Odd Lots · Steve Eisman on Banks, AI and His Next Big Bet · IDENTIFIED FROM THE TRANSCRIPT · source