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Back before it became apparent that a financial crisis was happening, there was an immense amount of leverage in the banking system over which Bernanke had a responsibility to regulate. The banks had become over-extended, over-leveraged and Fed wasn’t paying attention at the time. That’s just the math.
They may want to expand their business through leveraging a community that the listings market, particularly the NYSE brings to the table. And based on the feedback that we hear from companies who are private, the public currency is still very strong. RITHOLTZ: That’s interesting. They have — may have M&A targets.
It’s all about the math. Nordstrom reported that one-fifth of its sales now are via the online channel and Macy’s boasts that it’s the sixth largest online retailer, with double-digit increases in that channel year over year. So if online sales are increasing — and even at traditional retailers — why are they still in such a world of hurt?
I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. BITTERLY MICHELL: Not in leveraged, no, not at all, give more …. They understand currencies. RITHOLTZ: Applied Mathematics, Quants, those guys, yeah. I was econ and kind of geeky.
I was always good at math, but I really, I just didn’t relate to things that were more esoteric bonds options. What better investment outcomes could we have by leveraging our data? So we have lots of data that we can leverage. And I, I think that I kind of triangulated on it. I have no family history.
And I did a lot of options math, which I thought was interesting. So I had some experience in Africa that was able to leverage for this role. Which was interesting because I actually started my career at JP Morgan Asset Management in the high yield and investment grade credit research team. And I just learned a tremendous amount.
Walmart Pay comes to market with a few built-in advantages: it leverages the Walmart.com app, which is used by 20M+ people roaming around their stores each month, it works on every sort of smartphone out there, and they control the POS in all of their stores, just like Starbucks does. Next time, guys? SMB Working Capital.
The ability to use an anonymous single currency to power a decentralized, permissionless distributed ledger operating over the public internet where miners compete to solve the math problems that enable the processing of transactions is a remarkable innovation. The Crypto Has No Clothes. In concept. The Need for a Balanced View.
You know, people are comfortable, leverage builds. and what cross currency basis, et cetera, takes a while to assimilate at all. You know, the leverage in the system builds. The dollar is the reserve currency in the world. How are we doing in literacy versus math versus science? Where are we?
00:31:40 [Speaker Changed] So there’s the emotions and then there’s the math, right? And so when we, you know, kind of came into January of 2025, we were starting to talk to folks about, look at where the dollar is versus virtually every other currency super strong. In a very short period of time. Remember that.
My mom was a math teacher so — RITHOLTZ: Okay. A lot of the buybacks, by the way, and you could argue leverage has its own problems, but corporate treasurer is thinking that bonds were more overvalued than stocks. RITHOLTZ: Meaning commodities, currencies, anything that you’re buying with futures.
And I, and I really like the application of math and statistics and computer science to markets. You learn the math that can help you with, with market making operations. It’s just not smart on a math basis to do that. This is implicitly leverage. Leverage is a tool that accentuates both the good and the bad.
Wasn’t the Excel spreadsheet error, which changed their math. But that generally involves leverage, right? ’cause the economy wasn’t terrible, it was just over leveraged as we head in headed into the financial crisis. I mean that was, that was the problem. The problem is Japan is running two 50%.
It’s, it’s no different But, but inherently in futures, a whole lot more leverage, a whole lot more risk. You’re doing a lot of math in your head on the Fly. I’m doing, I’m doing an awful lot of math in my head on the fly. You had a lot of currency forwards trading, which made se made sense.
SCHWARTZ: And whose currency is up on the year? They got a lot of leverage. Isn’t that just a currency bet? And I’m like, “Well, if Bob Shiller is putting on the seatbelts, maybe he’s done the math, maybe I should be wearing a seatbelt in the back of the car.” This is — RITHOLTZ: Right.
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