Steve Eisman: ”It’s very hard to short a stock that’s a cult”

when I talk to UK investors and I say you know it’s possible that that Jeremy Corbyn could become Prime Minister the immediate reaction and i’ve had this literally conversation reaction from someone was no way and I said way and she said why and I said because it’s people who look like you talk like you and went to schools like you told me that Donald Trump couldn’t be President in case you haven’t noticed he’s president so I think it’s possible I mean III what probability that is that I don’t know but it’s not small [Music] how in bethere elegant and some food so keen on skill sent what is an octa and he stole we assembly until Hollywood success filmin the big short oak new I did iseman for kicks diggin yeah Steve Eisman you famously saw the financial crisis coming and successfully bet against the American housing market they even made a film about you and now you say that the biggest story on planet earth is brexit why so I think that the biggest story actually on planet Earth or at least in the developed world for a very long time has been the unequal distribution of income in the developed world and I actually think that is the sort of primordial cause of the financial crisis because rather than actually deal with that problem head-on our political system decided you know let’s let’s democratize credit instead and democratize credit means giving loans to people who really should necessarily beginning loans and that was the home equity crisis and in everything in the developed world I think Springs from that because every every place in the developed world has the same unequal distribution of income it’s a terrible indictment of the establishment and that problem manifests itself differently in every country but today it manifests itself in terms of populism so Donald Trump is President I think largely because of that Italy has ironically a dual populist government of the right and the left how that happens I don’t know but then again it’s Italy and in the UK the story is brexit and I think it’s the most interesting story on the planet right now because you know I’ve been to London several times and when you speak to people in the UK they have absolutely no idea what’s gonna happen and the most important issue that the country is facing there very very long time and one could argue that actually the political chaos in the UK is bigger than than in Italy because more ministers have resigned from just from Teresa mais government and resigned in Italy over the last decade did you know that I did not know that but how I do good yeah you told me yes so you are also betting against a couple of British banks because of brexit correct why well one thing I’ve learned in life is that when there’s something that could potentially happen that is so hard it that is just so horrifying people tend to discount the probability of it it’s just human nature and while you know the British market performed poorly last year I don’t think it price has priced in the possibility of brexit and/or Jeremy Corbyn becoming Prime Minister and I think both could happen and happen this year and if they do that would be extremely negative for the UK market so I’ve expressed that how to put this I’ve expressed it with a toehold so I’m short three UK banks don’t ask me which three because it doesn’t matter I could I could I used to be – I used to be – I added another one because I think the probability of brexit happening is higher so I added a third but the three aren’t important because it could be any of any three and if any of these events happen I’ll probably do more so is it a hard brexit or in No Deal brexit that is a particular threat towards the UK financial system and these banks well I mean I would think the UK banks will survive they’re much better capitalized and they were but the betting is that if there is a hard brexit there’ll be a recession in the UK which would be negative for credit quality which causes banks always to go down hmm many businesses here in London are more worried about a potential Jeremy Corbyn government than brexit do you think that view is correct well if you get a hard brexit and then you get Jeremy Corbyn that’d be that’d be bad yes at least and I look I’m not I’m not a citizen of the UK it is not my role here to tell people what to do or how to vote my only job is to predict what to try and predict what happens and try and predict what that does to the market with all due respect to Jeremy Corbyn Jeremy Corbyn makes Bernie Sanders look like a raging capitalist and I mean that very seriously even though it’s a funny line and you know he’s already said for example he will break up Royal Bank of Scotland he’s gonna nationalize the water utilities his view is he wants the the UK government in every aspect of the economy as far as I can tell I’ve just proved extremely negative for the UK market mm-hmm and you don’t think that is priced in not even close not even close oh when I talk to UK investors and I say you know it’s possible that that jeremy corbyn could become Prime Minister the immediate reaction and I’ve had this literally conversation reaction from someone was no way and I said way and she said why and I said because it’s people who look like you talk like you and went to schools like you told me that Donald Trump couldn’t be President in case you haven’t noticed he’s president so I think it’s possible I mean III what probability that is that I don’t know but it’s not small mmm when did you stop paying attention to brexit and sort of the risks here I started to pay attention to it more during the summer I mean I’ve been paying attention to throughout but it’s been getting closer and then I read Yanis varoufakis his book adults in the room and it gave me a whole different perspective on it yeah we’ve had Yanni’s very focus here on this program when the book came out why did that book give you a different perspective because I mean his story is that Greece could never possibly pay back the debt I think anybody who’s ever even looked at it would agree with that but rather than in a EU trying to work out some real accommodation with Greece by eliminating part of the debts that Greece could function I think the EU was worried that if they did that there’d be a lineup of other European countries who would want the same thing and so they basically said I’m an almost biblical way like Abraham sacrificing Isaac they sacrifice Greece on the altar of the EU and the ramifications of that for Greece were staggering in that in the Great Depression the United States economy declined from point two four point by 15 percent Greece’s declined by 25% I mean it’s horrifying so look I don’t know I’m not here to tell people where the brexit is right or wrong but I think the people who were in favor brexit are strongly of the view that we’re a democratic country and we want control over our economy and we don’t want that control to exist in Brussels and I think that’s what this is really all about and they have a point hmm so this book by a Greek lefty made you an American investor understand the largely right-wing brexit airs in Britain better yes yes ironic ironic yes it’s a small world small world yes so you’ve previously warned about the health of European banks Italian banks obviously also Deutsche what’s your view at the moment well you look the European banks were better capitalized and they have been the stress tests that the European regulators do every year so it’s a little bit of a joke I mean I love a stress test where you go through all this rigmarole to show that the banks are okay and then six months later a bank in Italy is taken over so I have no confidence whatsoever and the stress test if the European regulators do I do have a lot of confidence in this dress says that the American regulators do I don’t think any of the big banks in Europe are at risk like they used to be they’re just they’re not as well capitalizes the United States their balance sheets aren’t is clean probably with the exception of Sweden and some of the other Nordics but I don’t see a financial calamity coming in the European banks anymore I wouldn’t own them but they’re better than they were so you’re one of the people who have been shorting Tesla betting against the Tesla stock that has not worked yet it doesn’t prevent people this is the largest bet in Wall Street history against a single company at least according to mr. Eiland musk of Tesla isn’t it and it’s been going on for I don’t know what that’s true if that’s the biggest bet that’s a large statement I mean it’s not a big certainly you know island it’s not it’s also not the biggest short in my portfolio yeah it’s very hard to short a stock that’s a cult mm-hmm my view of Tesla is there’s a lot of competition coming and he there’s really been no competition until now and the second half of this year there’s a lot of competition coming and he’s losing his tax break which is gonna hurt his margins and I think his sales and I have skepticism that he’s going to be able to successfully build a mass-market car why he well until now he has built a car for rich people and you know what talking to people actually owned a Tesla is very amusing I was in San Francisco in late August and I went to the home of some friends and they said so Steve what are you sure I said I and I just started two short Tesla and the reaction I got across the table was well I own a Tesla could you be short Tesla it’s a great car you know the whole room was like upset and but then I asked how many cars do you have oh I have three cars and a chauffeur so just remember something about cars cars fail in other words you gotta take a car to get fixed there’s an accident you need a place to go to fix your car now unless you have three other has two we have the cars worth I said it doesn’t matter so you know when you’re buying a 65 to $80,000 car and it’s your third car and you get into some type of car accident and it takes a month or two to fix the car it’s not a big deal but when you’re buying a $30,000 car that’s your car and you can’t wait a month to have your car fixed he doesn’t have the infrastructure to service the cars that’s where I think the big risk of the company long-term is hmm so not just in implementation and practice Ward out those selling cars and just selling the car so how is it shorting a cult as you said I mean Eiland musky severe cold is not easy he’s got 23 million followers on Twitter and he likes to sort of you know he says something positive and people say ah and they buy the stock so this will be an interesting year I’m not wedded to the short yeah I just think there are a lot of issues it’s a very expensive stock and it’s more likely than not I think at some point here he stumbles and that will hurt the stock you didn’t believe in Tesla but you do believe in General Motors oh I actually do yeah well like I’ve covered him for a very very long time and I used to cover it more from the financial services side which was a disaster and sank the company so the old GM had a terrible balance sheet it had one of the worst management teams in the history of planet Earth and that’s not even close to an exaggeration and it failed and when it did more prior to when it did when it’s with its bad balance sheet it’s bad management it sold at five to six times earnings so fast forward today it actually has a good management team maybe even better than good it has a pristine balance sheet and it sells at five to six times earnings now what’s interesting about it is that there are actually two leaders in autonomous driving today and that is Google and GM and the first time I heard that GM was a leader in autonomous driving I thought it was ridiculous but then I heard from so many other experts that I came to the conclusion this is correct and so the way the math works is GM loses about 50 cents a share in its autonomous driving unit but we have a value for the autonomous driving unit because Softbank has put money into it so call it seven dollars a share now the company this year has already said they said this last week that they’re gonna make something like 650 so if he adds the 50 cents back that’s seven dollars for the car company so if you deduct from the current stock price the $7 that we know the autonomous driving unit is worth the stock is $30 divided by seven dollars and you get about a four and a half multiple now call me crazy but a four and a half multiple is kind of an inexpensive stock and I think what’s gonna happen is as we get closer and closer to the autonomous driving world you’re gonna see a real shift in the way people look at GM you know not all investing is a hundred percent rational so people who look at car companies they only care about two things one of the monthly sales and how long is the cycle that’s all they care about now there’ll be a conversation that will take place over the next year or two where a tech analysts will go to his portfolio manager and he or she will say I have one of the two leaders of autonomous driving and the stock is selling at four times earnings and his his or her p.m. will say you mean four times revenue and no no four times earnings and they’ll go nuts because they’re not gonna believe it and so there will be a report that someone will write someday I don’t know what it is but I know what the title is and the title is autonomous driving unit of GM worth more than the entire current market cap of the company that will happen you know what day that will happen I don’t know but then this stock is going to get completely revalued that’s why that’s why I bought it so you are worried about corporate debt at the moment so corporate triple b-rated corporate bonds then the market for that has exploded why is this such a big risk well not to correct your question too much I did I’m worried I’m not petrified yeah so let me give you some statistics and you’ll understand the dimensions of the issue in 2007 the size of the trip will be corporate bond market a triple B is one level above Junkin with 750 billion today it’s 2.7 trillion that’s not the issue when it was 750 billion dealer inventory I’ll explain what that is in a second was a hundred billion out of 750 billion in the total market today dealer inventories a billion which is effectively zero so what that means is in two thousand six and seven if you own triple B corporate debt and you wanted to sell it you could go call Goldman Sachs and say I like to sell my triple B corporate bonds goldman sachs would buy it from you because that was the business they were in post the Volcker Rule that is no longer the business that they’re in so if you call government say I want to sell my triple B corporate bonds gum will say we’ll get back to you we’ll try and find you a buyer so what’s gonna this will by the way I want emphasize this this issue will not cause the next recession and it’s not the size of it it just it’s not going to cause the next recession but when the next recession does happen whenever that is and I’m not predicting a recession this year I’m not even next year this is where problems will show up because you’ll want to sell your triple B corporate debt and maybe you have it marked at ninety cents on the dollar and someone will buy it from you but they’ll buy it at forty cents on the dollar and so there’ll be massive losses with investors who own that type of debt that’s not a systemic issue that’s just a problem people own that debt mmm-hmm so tying things back a little bit to GM so a lot of people are very worried about the ongoing trade war if you can call it that between the US and China do you think those warnings have been exaggerated I mean the US economy seems to be doing fine it hasn’t been exaggerated now the US economy was doing great through the first nine months of last year and we’ve seen some pretty good slowing in the last three months of the year I’d say the US economy was growing plus three before it’s probably growing plus two and change maybe two and a half not a calamity the stock market seems to be pricing in a recession already or at least it was until this last week I don’t see a recession and you know I take my cue generally from actual credit quality mm-hmm you know credit quality United States on the consumer size and then the consumer side has never been this good in my lifetime and the Linkwood season still so I don’t see a recession when consumer credit quality is low and improving mmm call me in six months to a year we might have a different conversation mmm and what about domestic political risks anything that the president might do well there is a dangerous question look the US political environment is extremely volatile we have a we don’t have we don’t have a functioning government right now you know the government just shut down Wall Street doesn’t seem to care too much III don’t see a resolution anytime soon so you know what that means for the economy I’m not sure at this point but I don’t see a resolution between between the Democrats and the Republicans on reopening the government mm-hmm what role should emotions play in investing I mean you wrote sometimes portrayed as being angry you don’t seem very angry to me but about those years of therapy years of therapy okay but is it good for example to be angry as an investor to be driven by your feelings sometimes well let me just say first that there is a theory that the market is rational and that all information is priced into stocks all the time someone from the University of Chicago actually want a Nobel Prize for that theory and not to them yes well they won the last time they wanted I can’t remember who want it but it was about six or seven years ago I think that there is ridiculous come to my office look at my screen I see panic in euphoria like every week people invest with their emotions they just do do I think that’s good or bad I don’t think it’s good or bad that’s what happens creates opportunities if you can stay rational it’s hard to stay rational all the time how do you do do you for example like shorting something that you dislike oh I love shorting something yeah it’s like yeah I don’t forget though I don’t dislike Tesla yeah at all and look I he’s trying to make a car he’s trying to make an electric car that’s a good thing I just think the stocks overvalued and and there’s gonna be competition mmm I’m not emotional about Tesla I’m very data-driven you know if it turns out that he sells a lot of cars despite the tax break going away and he sold he creates a mass-market car god bless him I’ll cover the short eye man I just I’m not emotional about something you get emotional about you know when it comes to things like for-profit education I get emotional hmm yes why well I think that the for-profit education industry in the United States is just an unethical industry and you know I’ve met so many former students of these schools that are burdened overly burdened with debt from degrees that are utterly worthless it’s it’s terrifying so I used to short a whole bunch of for-profit education schools under the theory that the government would actually do something right that theory proved to be correct for quite a number of years but under this administration that’s not happening hmm so that was a case where your moral moral outrage made you lose money no I made money you made money ya made money on that short but it was a pretty volatile ride but I’m not really involved anymore because this administration supports the industry mmm-hmm so you mentioned your lot less angry these days so compared to ten years ago or 11 12 years ago when you started your big big famous short I’m the American housing might be on my tombstone yes it will be a lie it Steve Carell oh yes who plays you in the in the film how have you changed as an investor if at all apart from being less angry well I broaden my horizons I used to just do financials and now I do all sectors which just makes for more interesting investment experience but my approach is pretty is pretty similar to what it always was hmm thank you very much see you guys man thank you you

100 thoughts on “Steve Eisman: ”It’s very hard to short a stock that’s a cult””

  1. Hes right about GM, however the nature of GM's autonomous solution is local to the US and won't easily scale worldwide. I also believe it can't scale work on most country roads, alleyways, parking lots, and all the other low traffic places.

    The company that solves self driving on every US highway and every major US city street will be worth well over a hundred billion dollars.
    The company that solves self driving for every sealed or metal road and parking lot in the world will be worth over a trillion.

    I'm long on Tesla because as a Software Engineer I believe they are the furthest along solving the trillion dollar problem. I think google and GM have chosen to solve the 100 billion dollar problem and will likely get there first.

  2. it is mostly the political dimensions of brexit that is analysed and hence this is a very refreshing and unique take

  3. While I agree with the idea ”It’s very hard to short a stock that’s a cult” and I am sure he came with that after his short on Tesla did not pay off.

    There is this argument he made that cars break down and people need their car.
    Tesla cars will not break down all at the same time.
    Only a limited number will break down in any given time of the year, and they give you another car during that time.
    So it is not a problem.

    And people have other options too especially in big cities.
    Public transportation, uber, taxi, rental.

  4. Great interview , but credit card and student loan delinquencies are at record levels in the US , so certain areas of the credit market are not rosey

  5. To anyone reading this post. We need to spread the word to force
    congress pass a LAW that no financial or banking institution can impose
    negative interest rates on depositors' funds.

    Reader, make similar posts to make a LAW on as many You Tube videos as
    you can. The arrogance of the central bankers to think they can rule
    over us, that they can make the rules,in order to STEAL our money should
    make any persons' blood boil.

  6. Interesting guy, very logical and reasonable, but he may have misidentified Tesla as a 'cult'.
    Reusable rockets, vehicles, energy storage and all the accompanying infrastructure, require logic and reason to function. Belief and ideology, the usual identifiers of cults, are notoriously rubbish at making that stuff work. A cult based on logic and reason could be no bad thing if they weren't logically incompatible. Or maybe it's a step forward in our evolution.
    That more and more people appreciate the phenomenon of Elon Musk doesn't make it a cult. The support he has may seem like a cult to those who don't see it yet but it's understandable, followings like this in the past have usually been cults. In our history we've often been confronted by awe inspiring wonders that we then worshiped. For instance the sun was so much of a wonder that we deified it. Now we know it's not a god and we, logically and reasonably, now know what's happening (ish). Consequently, with that knowledge, the wonder and ramifications of the sun are way more spectacular for us now than we ever imagined when we thought it was just a god.
    I think the same is true of this phenomenon. When we start to understand the scale of Musk's intentions and his extraordinary ability to execute, the phenomenon gets way more fascinating. Occasionally someone will deify him, but mostly not because he's so obviously human; he stuffs up.
    What interests me is his usual logical and obvious response to positive criticism when he realises he's stuffed up. He admits it and what he learned from it. However, if he doesn't think he's stuffed up he'll trust his own judgement and that's been doing very well for him so far, very well indeed.
    It's a truly awesome phenomenon.

  7. Trump being President is being made in to a bigger deal than it deserves.
    The UK's story of Brexist is because there are too many players who are going against the will of the people.
    How can anyone listen to an American from the financial industry and take them seriously?
    The whole US economy is the biggest welfare case in the world and the American economy is one of the most despicable hypocritical creations of man kind.
    The US philosophy has always been 'free and open fair competition and free will and free market' bullshit, but the stock market crashed and the US government rushes in the save the US economy. And this guy, while he was not a key player necessarily, he is part of this despicable hypocritical system here in the US, to take this guy seriously is giving legitamicy to this shitty US economy with its despicable players.

  8. As a German i say, Brexit looks like it is wrong and they may struggle for a while but on the long run they will benefit from leaving, because the EU is on the way to collaps.

  9. Servicing cars is generally a fairly lucrative business, no? I don't see why Tesla shouldn't be able to sustainably scale that aspect of the business in line with production. Hard to see this being an issue that will hinder their long-term success. Interesting thing is Tesla is moving towards mobile servicing. If they work out the kinks in that it'll be more convenient than having to take your car to a traditional service center (which nobody will miss!) and will probably mean less overhead for Tesla. Win-win.

  10. Eisman is not worried anymore!
    I don't know if that should calm me down or scare the shit out of me! Maybe he just don't want particular instruments to be priced in correctly 🙂

  11. Fantastic interview. Very informative. Eisman's character in "The Big Short" was like an Old Testament prophet screaming into the abyss. I'd buy his picks.

  12. This is just one more Clown in the Show! When the Show is Over and its coming….these Clowns like this Guy will Still have the F-in Smerk on their Faces! Middle Class has already been priced IN!

  13. "There are two leaders in autonomous driving: Google and GM" and not Tesla, it is hard to respect this guys opinion. Shorting the housing market wasn't his original idea either.

  14. Conveniently ignores that GM will have to cannibalize their current sales to start making EVs they are years from having positive margins on. There is a good reason it's valued so cheaply. Also saying Google or GM are the leaders in autonomous driving when TSLA has billions more miles of data. Data is food for AI essentially and if you consider total miles collected to data, TSLA has over 90% of them currently. The points about service are fair but still addressable so we'll see I guess.

  15. I find it strange for a guy to put millions in shorting Tesla not having experienced owning one, he's like Peter Schiff talking about bitcoin.

  16. "Jeremy Corbyn would be terrible for the market" — good! This market is hurting people more and more every day, more and more people just don't even want to be alive anymore, there's new people begging on the streets for their first times everywhere, this market won't stop taking until there's nothing left, dismantling it is an act of self defence.

  17. Bookmark this video too.

    Let's come back to this in 3 years to see who really is an expert.

    Here is my take (an apparent nobody from Nigeria – a 3rd world country). Let's compare this super important guy and the top "experts" he gets advice from:

    1) Autonomous driving.

    Unless you actually understand the technology for yourself (in-depth), you do not know that GM are among the leaders.

    Even if GM were leaders, their strategy is OWNING the fleet. When this becomes the norm, they will discover the error in doing it that way.

    Tesla understands the times we live in, and the therefore have a good feel for what is ahead of us.
    This is the era of decentralization! Tesla's autonomous fleet will be owned by it's customers…..who already have a knack for being LOYAL!
    These customers, when the time comes, will flip a switch, and their cars will go and earn money for them and for Tesla!!!

    2) Competition.
    They keep talking about competition. But they do so as though they were blind!

    What is so difficult for these experts to understand?
    An electric car is a CAR. It is not some appliance that people buy solely for the purpose of being green.
    The primary reason will always be to drive from point A to B.

    Point I'm making is, if any of the competition makes cars that can come close enough to compete with Tesla, then they are making electric cars that will compete with Tesla as well as all the other cars that people have been trading in to buy Tesla's!!!

    The worst part is that, when all these electric cars are out there from Jaguar, BMW, Mercedes, Audi, etc….they are unwittingly announcing with a louder voice to the whole world that electric cars are finally here!!!

    Let's see how many people will go out of their ways to get gasoline cars then?

    3) EV is not in isolation. It ushers in Solar!

    Finally, with millions of electric cars in the streets, more and more people become conscious of getting solar panels (these can be financed EASILY with money that would otherwise have been wasted on utility bills).

    So millions of new electric car owners, and how many of Tesla's Competition sell solar panels and home batteries!??

    So let's all come back here to this thread by Q4 2022.
    Let's test this man's understanding of the markets in comparison to mine, shall we?

  18. So this super star investor doesnt know who Eugene Fama is? This EMH seems to be irrelevant to actual investors then…

  19. This guy is bonkers … Tesla is leading in autonomous driving, it's about data … Tesla has 95% and climbing of all the data there is from on the road testing. Now, it's only autopilot version (whatever) and people say that isn't up to scratch to be counted, they discount it, however navigate on autopilot is cresting the wave and all the background data Tesla already has from live user driving is going to come into it's own. Also, Tesla has hundreds of thousands of cars on the road poised to gather the data at the higher tier this year. Tesla is simply miles ahead.

  20. Smart dude and wise to the ways, but he didn't predict the housing crash. He was informed of a coming catastrophe in the housing market and due to his intelligence he wisely heeded the advice and took a good gamble that paid off to his dismay.

    The interviewer is fantastic by guiding the conversation then allowing him to speak without constantly trying to talk over him. Great job.

  21. 18:08 where he's wrong with this point is the same reason credit was great until the recession. Get behind on your car payment? Refi and cashout on your house. The American piggy bank cures all ills……until it doesn't. We're reaching the part where "doesn't" is coming into play.

  22. Not sure what the hype is really on Tesla. It's got to do with Elon, more than their product. Their cars are nice, but electric will forever be a niche. Just like some people "just don't drive" and would just rather bicycle or take public transportation everywhere, some people "just don't like electric" cars, and it may simply be because they prefer the sound of, say, a V12 engine. There is NOTHING Tesla can sell these people in their product line. Tesla may be like the MySpace of the early social media frenzy. Everyone was on MySpace…and then Facebook came along.

  23. lmaoooooo doesnt believe in tesla but believes in GM , the biggest stumbling cost in electric cars is the cost of the batteries , all car companies are going to face extreme supply chain issues , EXTREME, tesla has already overcome this issue, gm use less efficient batteries. And they are also making a terrible bet with their LIDAR system which will take years and tons of government intervention to bring up to the point where it can be used by everyday people, tesla have gone the image recognition and machine learning route , which although is more volatile, will increase in reliability , Tesla wont go bust because of a number of factors in my opinion:

    1.they are well ahead of everyone else in car specifications( range , power,technical capabilities) and already have the supercharger infrastructure.

    2.autopilot data(billions of miles)

    3.Their partnership with panasonic( theyve learnt how to make batteries at scale and how to streamline the supply chain) , they make 5000 model 3's a week , that's 22080000 individual cells, the only viable competition right now is audi, and their specs are meh tbh , i expect audi to be real competition in about 2025 and tesla would have already had leaps in technology as well.

    his concerns are valid but i thnk long term are only teething issues

  24. Tesla is gonna totally crush autonomus driving mark my words ppl do not understand exponential growth of how their system works. Every day teslas autonomus system is getting more stronger than the previous one by the end of the year your model 3 will be able to drive itself anywhere anytime with 99% accuracy…. it will be just reguatory hurdles that will very likely postpone the full deployment

  25. Filmed at the Mayfair Hotel. I used to work at the Washington. You would see all sorts of people come in. It would've been interesting to speak to this guy.

  26. The liabilities associated with autonomous vehicles will far exceed the value of the technology, as applied directly to autonomous vehicles. The application of the technology to improving the safety of non-autonomous vehicles has a value that exceeds the liability because there can be a reasonableness test applied to the responsibility of the driver. Autonomous vehicles will never exist as a mass market product.

  27. As an outsider, I felt Trump would win for the simple fact that people had enough of political correctness dictatorship. My prediction is that Canada will be the next country to vote NO to political correctness in 2019 and many other countries will follow.

  28. Sounds like an opportunity fixing Tesla cars if musk doesn't want invest in the maintenance of his cars what if someone else does

  29. How about Nigel Farage being the Prime Minister of England? I am a Medium and I told my husband that and made comments on You Tube, back when that suggestion sounded totally crazy. Even Nigel Farage said he was out of the game, my husband told me. Let's see what happens! I predicted NO Deal for the end of March)

  30. The cause of the credit crisis was the "democratization of credit?" I guess that's one way to look at it. Another way might be the banking and mortgage industry needed more and more MBSs to keep the party going. The old "pocket the cash and pass the hot potato down the line" game. "Right Steve?"

  31. Hey Steve. There's a reason the "developed world" is considered "developed". It's because of Capitalism. Yes, the middle incomes are shrinking but so are the lower incomes and the higher incomes are RISING. There's ALWAYS going to be income inequality. That's the nature of elastic markets. As soon as we start trying to "fix" this… that's when success and wealth of the western world will start to look more like 3rd world nations. Which is, of course, the goal of the left.

  32. Let's not kid ourselves, the "for profit" education market IS the entire higher education market. Just because the "non-profit" money gets filtered into an endowment or new buildings does not magically mean that the administration behaves all that differently than the Board of Directors for a publicly traded firm. How else would my undergraduate college move from charging $5000 per year in 1989 to over $40,000 per year today.

  33. 11:17 That's not the real reason why he shorts TSLA; he is lying. He shorts it because every other trader on Wall Street shorts it and that's a fact; it is well known to be the most shorted stock on Wall Street.

    It's not hard at all to short a stock that is widely known to be shorted and is actively traded; it simply keeps it from being overvalued like Amazon.

    What a D-Bag.

  34. Everybody have to remember our Government was ran by 3 disbarred lawyers & White collar crime Bankers practicing legal fraud for the past 8 years they are all pretty brainwashed…… they win by hook or by crook…. Bernie Madoff robbed most of the American senior citizens from his own generation back in 2008….he was only CAUGHT because the economy CRASHED & he got backed into a corner by the Angels of God through the numbers … he had to turn himself in…..their rule of law is if you can’t beat them then cheat them ….it’s embarrassing & sad ? follow the money ? numbers don’t lie people do!

  35. @3:23 Yeah. Like gasoline vehicles becoming obsolete.
    @11:30 Wow! Another clueless short. It is 2019 now, and I know middle class people who have made a Tesla their only car (some trading in their Civics and Corollas) and they are not looking back! Best decision they ever made! Remember Steve, there is very little that can go wrong in a car that has 16 moving parts and only needs windshield washer fluid replaced.
    @12:08 But I do believe in GM! You know, the company that needed a huge bailout and just closed two more assembly plants? Yeah that one!
    @13:00 LOL!!!! Wow! The clueless comments continue!
    @13:08 Your first reaction was correct. The other "experts" are paid shills and trolls to make people like you look away from the reality of the Tesla Robo Taxi network. Coming to a blind, drunk, annoyed, handicapped, immobile, low income, tourist, had-enough-of paying-for-autos client near you in 2020.

  36. Tesla has 90% of autonomous driving data…AI is about iterative improvements through data collection. We'll see if Steve Eisman's premise is correct. Remember to check your premises – Michael Burry – the guy Steve Eisman copied in his big short. I like many of Steve's assertions but I think he's emotional and adding up his liking of GM with the Tesla short.

  37. The whole system is based on a lie. Wake up God’s people. Money created out of loans? So creation of money is based on a mathematical equation requiring ever more loans to pay to previous loans which have interest. The entire economy is a Ponzi. Madoff just played the game like any other rationale player in a rigged game would.

  38. humans, in general, underestimate low probability negative outcomes (eg financial crises, natural disasters); and overestimate low probability posivitive outcomes (eg gambles, lottery wins)

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