Short-seller Chanos Sees `Golden Age of Fraud’ in Speculative Market 

need to get rid of cnbc

There's a reason the best financial journalists are NOT on CNBC lol

No, to be on CNBC you have to be a stock pumping propagandist.

U see, the interviewer is an Asian, a chinese. Chinese people are generally raised up to be respectful.

@@chinchang5117 that’s certainly not true bro 😂

Yes yes yes 100x yes. SHE CAME PREPARED

CNBC is fake news

CNBC is for personalities and pundits.

U see, the interviewer is an Asian, a chinese. Chinese people are generally raised up to be respectful.

So work harder and make less money? Yea, that doesn’t seem smart or respectable. The purpose of the market is to make money.

@@drtyjrze Since when was shorting "making less money"? And going short takes about as much time and work as going long. Unless your only research is "stonks only go up".

@@Mondrayish look at the market the last 10+ years. If you went long the market you’re up big. If you’re a short you had to pick and choose the correct companies to short and time it correctly. Not sure what’s difficult to understand about which was more difficult AND less profitable.

@@drtyjrze Ya thought so. Yup, you're right. Stonks only go up! SPY 450!!

@@Mondrayish I didn’t say that, but you’re the smartest person in the room! Keep shorting, a broken clock is right at least twice a day. Your time will come, eventually.

Agreed. Well done

Agreed!

what the hell, is that really her name or a nick name?

@@AWildBard yeah

There were times I thought none of the fundamentals support these prices but as John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.”

It literally can't go tits up

STOnKS

no it goes down everytime

My basic take is that Tesla is a tremendous company, but perhaps someone overvalued. My beef with Chanos is that he’s been making completely bogus claims about Tesla for years. It’s one thing to say the company is overvalued, it’s another thing to go below the belt and talk about executive turnover, “competition is coming”, and all the other tropes that have been completely discredited. I actually agree with a lot of what Chanos said about certain areas of the marketing being overvalued. Just think he’s been really off base about Tesla.

@@xyzzy4567 I agree with Chanos about TSLA being overvalued. I think it's been overvalued for at least the past 12 months. A great company with probably a very bright future - just overpriced imo. The main risks with shorting a company like TSLA are, a) Short-term stock prices are largely based on faith, b) Growth stocks grow so the longer you hold the short, the more likely you'll end up being on the wrong side of the trade. Any shorting is very risky as you can lose many times you're stake but there's a HUGE difference between shorting a company that's committing fraud or who's market is shrinking and shorting a growth stock that you think is simply overpriced.

if only he had waited until now to take his position, maybe he would have a chance. although it's possible their eventual profits will catch up to the extreme overvaluation right now. tesla seems so dominant now, but also, barely any people drive electric vehicles, it is a nascent industry.... think of what we'll see in ten years. so I think it is a mistake to see tesla's continued dominance as a given. My issue really is that you have to be a contrarian POS to go out of your way to boldly take this position when so many other companies are clearly more likely to fail, or have CEOs without a proven track record, etc.

@@violarulez I think the main problem here is, that other companies catched up. Audi E-Tron, Porsche Taycan are attacking the Model S, then there are Hyundai Ionic/ Kona / ID 3. All these cars are cheaper than a Model 3. ATM, there is no direct competitor to the model 3, but this market is small. Why compete with the best technology, when you can beat the "best" technology in all other (price-) fields. My opinion on Tesla is, that the space that it can occupy is to small for its market evaluation. The market it hast is worth max. 30 billion dollars. I forgot the model Y, ah yes, there are Volvo XC40, Polestar, BMW IX3, Hyundai Ionic 5. And all of these are great cars. One comment towards Audi/Porsche vs. Tesla. The Tesla has the better performance, but the german cars are on another quality level. If I spend 100k, some flaws with Tesla cars are not acceptable. But, I would also not spend 100k on a car...

Terrible call. He's just shorting shit he doesn't like or understand. He's probably bearish BTC and crypto as well

Very true. The FED is the most interventionist entity in the USA. When are american citizens going to understand that we have massive corporate socialism in the country.

GOVERNMENT/WALLSTREET COLLUSION! *** PICK THE AMERICAN CITIZENS WORST ENEMY: 1. THE CCP, 2. THE TALIBAN/TERRORISTS, 3. THE US GOVERNMENT/WALLSTREET CABAL & DEBT.

.....except that the average person’s pension, stock, or retirement portfolio has benefitted the whole way.

I can't go a day without overhearing some random person talking about their stock portfolio, only a matter of time.

I've been in the stock market since 2014 (when I turned 18). Never heard anyone my age talk about the stock market, until now. Now everyone seems to be in the market.

@@felixf4378 OMG wow you are so amazing! Everyone was talking about bitcoin a decade ago. You're not special.

that sounds crazy....so you mean young people just playing with their phone and saying they are buying stocks? can you give me some more examples? when did you recognized it the first time?

@@bestvidsdottk At least he doesn't hate himself like you do.

Didnt Trump say the same thing about Biden. The market hit all time records instead. The DOW loves Biden.

@@ricomajestic I believe what the market really likes is Divided Government

The market just likes massive liquidity, negative real rates, and people doing stupid things with their money!

the market did once crash into a record low in April though, for the record.

Comment Machine yeah it did and nobody was expecting it to happen, and now that it happened, everyone thinks they’re a genius predicting the next unrealized market crash.

@@znome8500 down to $50? I doubt it

@@znome8500 The Fed is holding everything up. With a gun. At least regarding shares

@@helldeirch you said $50 not me.

@@znome8500 So when you remarked that "the fed was holding up Tesla" - what did you mean? That the fed is only holding up Tesla's share price and not all the shares in the rest of the market?

@@znome8500 Maybe you might want to re-check the S&P 500 entry criteria and re-visit your last incorrect comment. However we still need to deal with your earlier remark about the market, the fed, and a myth.

Bruh 😂

Like Peter Schiff

@@sparcx86channel42 Peter Schiff is a one trick pony, whose trick was housing back in 2008. Nowadays he will spew his doom porn to anyone who will listen and have him on. And buy HIS gold and HIS newsletter which I suspect is how he really makes his money. Schiff doesn't have the skills or intelligence to be in Chanos' league of investing. But Peter will be right again, like a broken clock.

​@@sparcx86channel42 You do realize that Peter Schiff doesn't have any short positions right? He's bullish on gold, a strategy that seems to have worked out just fine in 2020.

@M. M. I disagree entirely with that. Although I don't fully trust Ray Dalio's motives all the time, I would take his assessment over Schiff's. From watching the past year to going back to 2008, Schiff's the same. And Schiff hasn't (to what I am willing to see) figured out that the powers that be will move the entire universe to prevent another Great Depression or not. If your only answer is to buy gold (and only gold) during this time that's too myopic. I believe that's similiar to what caused Hugh Hendry to throw in the towel in the last decade is things didn't go his way.

Interesting post Mark. What is a risk premium spread? Thanks.

@@fendermon Hi fendermon. Consider risk premia for a moment. Risk premia is the risk (measured as volatility - since there is no other way) and average return function of each asset class. The asset classes with lower risk premia, such as short-dates treasuries, offer a lower average return. While assets like equities, which have much higher volatility and payout a higher average return over time, have a higher risk premia by their nature. The relative risk premium "spread" is the difference in the risk premia between the asset classes. If the spread between, say for instance bonds and equities, becomes quite small, you will see an outflow from equities and an inflow into bonds, as investors can almost achieve the same returns for a much lower level of risk. The opposite can also happen - the spread can be so wide that even though equities are overvalued, the risk/return profile on equities might be far more attractive

Started as a finance major back in 2003... after a few years realized what crooked stupid financial system we have, the way it functions completely from retail retirement firms, literally Washington Mutual wanted me to broker for retirees or soon to be retirees and I got an incentive to put them in to particular investments, not investments that would necessarily benefit them the most. And then there's everything else, it just gets more ridiculous.

Agreed. This is all just a massive pump for tutes to unload. They got caught off guard with the rona drop so they are making sure they can exit positions in profit 😂

No, he shorted Robinhood.

@@patsavage1245 Oh boy, I really HOPE so! :D Let's do Silver next.

He discovered the Fraud of Enron, Lehman, Luckin Coffee and Wirecard and shorted them, He's not short GameStop

@@ryanschneer Theranos? Another billion dollar scam. The elites are so smart

@@disillusionedanglophile7680 Only the elites fell for that scam.

"fraud" and "bad business practices" are just buzz words. The entire industry is like this. He shorted Tesla so you know his clock isn't perfect.

i think ibm made their biggest mistake by buying red heat for 34 billion. i liked them before, but after this i quit my position

seriously. She was writing "SHORT IBM!"

ibm is boomer tech

@@georgesamaras2922 Nah but the boomers milked it for every last drop of divs when Ginni Rometty was CEO. Now it's a mountain of debt supported by declining cashflows.

Roku's market cap is $37B; which is around 30x its sales of $1.2B TTM. It may be overpriced, but its a growth company. It has grown revenue 40% and 50% over past years. Thats pretty damn good for the already competitive streaming industry imo. Dont just look at stock price ya know.

I agree with your post, but would only advise people to buy Roku on a 30% pullback. There's a lot more runway for this stock in 2021

Youre right. Maybe as a car company they could be valued reasonably at $50B or so. But they collect data, so that adds another $500B to their market cap. I looked at Teslas revenues and almost all of it is from selling automobiles, but dont be fooled by that, they arnt a car company. They may not make any money from it, but they are a battery and data company. Google collects so much more data though, there is no comparison. So they should be worth 500 Trillion dollars.

@@Inbal_Feuchtwanger 500 trillion???? apple is 2 trillion lmao

So when will Tesla start making money on their data!? What good is data if you can’t monetize it? What good is growth if you can’t make a profit on it? Reminds me of the old joke: Our prices are so low we lose money on every sale! How do we make money? Volume, volume, volume!

that would be a hypocrite. He is so impervious to all people company hires, materials buy from company's, economy it creates.

vincbestia he’s probably right, that likely happened.

I am sure he his leveling his positions and going in with a controlled stop loss

Heard of options?

@@subaganesh232 options require accurate timing which is not easy to say the least

Chin up. You live and you learn!

You only lose if you sell it at a loss. They aren’t bankrupt so cash out later.

GM and GE were never successful companies. They were a house of cards built on sand foundations of their ridiculous financial arms, which caused them to be TBTF and need taxpayer bailouts.

@@id10t98 they have only been around for a 100 years. They were successful and are still making billions. Probably more then all of us put together. Maybe currently they aren’t as profitable as they once were but to say they are not successful is not accurate.

@@PhongNguyen-nz9kz GM was a dinosaur car company back in the 1970's, producing junk still to this day. GE used to build decent appliances, jet engines and nuclear power plants. Jack Welch ruined the company by focusing it into a financing company and it killed the company. Investing in them is dead money.

The man has been talking s**t about Elon & Tesla for the past 5 years. No doubt he's salty about 1) Being publicly wrong. 2) Missing the run up

Does anybody know if he also shorted Amazon back in the days?

@@migo-migo9503 Nothing seems to come up

@@migo-migo9503 Mark Spiegel tried shorting Amazon briefly in 2015, but as far as I know Chanos never did.

Lmao

Not so long buddy

@@thorbenreuter5937 Bear in mind my comment was written three months ago, but what might obtain is the market's driving rates higher but the Fed's maintaining its interest rate stance. Then banks would profit from the difference in interest rates. If it's not obvious, let me state plainly I'm not educated in finance. Nevertheless, I recall the Fed's reacting to higher market rates in the past. I don't know that it will do so now, and I don't know what will be the consequences of its determination to maintain low and apparently below market interest rates.

@@midlander8186 It's taking a long time but hikes will be forced in, thanks to inflation. Even their phony official inflation gauge is going to pick up on the crazy inflation we have. It's just lagging because they use OER.

😄 😄 😄

No..thats the lobby of Motel 6..best he can do now.

No, market is fairly valued

Not for long i think... once people learn and grow it will correct itself from it I think

@@threetimes90 when? i bet it will keep going.. too much passive ownership of stocks causing no short term corrections.

Welcome to a market run by democracy rather than professionals with a fiduciary duty. Same way anyone can sell on Amazon or shopify with no required quality control or fed regulation. It’s a full blown global participation market. It’ll go on forever until there’s a way to stop everyone from participating.

@@jkk20 Good point. Pensions have gone the way of the Dodo. People have little choice but to invest, and bond funds are dead money.

Exactly. Everyone knows what he’s saying. The difference is most adapted to the environment. He’s been losing for 10+ yrs. It’s similar to Buffett missing the entire tech explosion.

“GDP is down 30% ” This is simply not true. This is the projected annual GDP decrease according to quarter two data

Naw bruh.

True. Solar City was about to go bankrupt before Elon did a bailout. And even though Solar City has only been a liability for Tesla, so far both Solar City and Tesla shareholders have been rewarded, so they didn’t complain and this late in the game have no basis to complain. They all had time to gain 1000% and get out. It will be interesting to see if the right people are put in place to get the market back in balance. Offer 5 year 10% APR CDs like back in the late 80s and see how much stupid money moves out of TSLA and into safety. It’s absolutely crazy how many are willing to risk losing all their savings just because there is a temporary period were interest earned is slightly less than inflation. Covid, unemployment, foreclosures, medical bills. It’s all about to get crazy as we enter the deep cold winter and people will be gathered inside crowded placed. Who will keep buying luxury cars when nobody has extra money? Governments are starting to push the welfare burden onto those who have small investments like a rental house, and allowing tenants not to pay without fear of eviction. Chanos knows Tesla is still not stable. Even Elon knows it. Once VW, Ford and a few others kill the ZEV credit market, Tesla is back to losing money each quarter again. Only now they have loses spread out among more factories. Many TSLA holders will be posting “Buying the dip, this is a great sale”, while actually selling some hoping the new Robinhood investors are still buying.

Tesla isn't a car company. If it was a car company, it'd be overpriced dog crap instead of a boutique speculative luxury brand.

@@redlionplumbing that's OPs point ☝️

@@gwills9337 well China can't backstop their demographic cliff and real estate market. Can't borrow our way into prosperity.

no mining at Tesla

@@olegscherbina1493 I think mining = "The Boring Company"

Dude has balls of steel. That much can be said. I actually agree with him on most of what he said. Tesla was a major miss though-will be hard to live that down.

Great example of the hysteria in the markets. I saw all this back in 2000 era tech bubble, exact same situation.

No stopp loss: famous last words of any trader

Lol no stop losses on shorts?! Unlimited liability YOLO

Lol. No one is longer TSLA than EM. Look at his holdings.

@@EnergyMaxWh sometimes you need to read between the lines. Also, there is no boat (that I know of).

What has happened to critical thinking and reading between the lines?? You think Elon negotiated such a tranche that would make him the wealthiest CEO ever, just to be SHORT?!?? Wow. Just. Wow. 🤦🏿‍♂️

Go NIO.

expected % return on a real estate investment --> Net operating income/market value of property

@@deshtruction33 Thank you!

The #of years of earnings it takes to recover your purchase cost. A 1 million $ purchase price building earns 100k per year. CAP = 10. Which is excellent scenerio cap 25? Bad

@@Sugarman44 Thank you too, Sugar man!

Something like Amazon was probably.

Most businesses fail because they are under capitalized, not because they're unprofitable. The rich can afford to waste money and then write off the losses. The plebs aren't really allowed to be entrepreneurs - they are too resource poor

He's waiting for cybernetic implants

Hahahahaha

Harsh 😂

They probably crashed and burned, literally.

They are net long the market. They use short book to leverage up their longs.

@@varunpriolkar_com how does that work when you short Tesla as a hedge 😂

Doesnt take a genius to figure that out

anyone not under a rock saw that. So many thought that, that’s why its up again.

The bad actors in the market is the FED ... untouchable by the regulators for fraud. the small actors of fraud aren’t going to deflate this market. Just a blip

The market can stay wrong longer than we can stay liquid

Hi, I'm from the future and you got this one big wrong, bro.

@@gwills9337 I have been so right...so absolutely wonderfully right. Thank you for bringing back my 2 year old post showing the truth. Thank you very much.

Might I suggest a long position on gold and silver? Back out at 50% and 100% returns. Them go back stocks.

said the people about the nazis...