BeSpacific - 3rd Place. His newsletter is Money Stuff. Yes. 2. Matt Levine would like you to know that Elon Musk does not actually ruin all of his vacations. You have 100 Customer Bs who are short Bitcoin on margin: They each have $20,000 in their account and owe you 0.5 Bitcoin. If you go to an investment bank and say lend me $1 billion, and I will post $2 billion of your stock as collateral, you are messing with very dark magic and they will say no. Tyson Foods CFO Arrest Adds to Governance Challenges for Board. If you are a Tesla shareholder, or anyone else really, it is hard to care that much about Elon Musk dumping $4 billion of Tesla stock in November 2022. Oil is voluminous and oozy and poisonous and flammable and smelly, Mr. Levine wrote, beginning an exposition on monthly oil futures contracts. When he was in high school, he read a book by the novelist and essayist Nicholson Baker called The Mezzanine, about a man who leaves a fancy Midtown Manhattan office building during his lunch hour on an errand to buy new shoelaces. 4. Hi, I'm Matt Levine. So whereas the basic model of Coinbase is they buy Bitcoin for you and put it in an envelope, the basic model of FTX has to be they lend you money to buy crypto and then make use of your crypto to get the money. In financial terms, they have to rehypothecate your collateral; you cant expect them to just keep it in an envelope if theyre lending you the money to buy it. In August, Musk had said he was done offloading Tesla stock and that it was important to avoid an emergency sale of the shares in case he was forced to close the Twitter acquisition and struggled to bring in additional equity partners. FTX didnt have the money, and Bankman-Fried started calling around asking for a loan or a bailout. Coinbase says: Your funds are your funds, and your crypto is your crypto: Coinbase maintains internal systems, like a bank or a broker. It was like a combination of everything Mr. Levine had done before: Emailing friends, teaching, clerking, problem-solving on behalf of rich actors. Matts the perfect complement to Bess, Felix Salmon, another financial blogger, wrote in October 2011. Billionaires read Money Stuff. A coverage banker an investment banker whose job was to know companies and advise them on financial topics would bring me to a meeting with the chief financial officer of one of her companies to talk about convertible bonds. By 2011, Mr. Levine had decided to leave Goldman. 2: Dont borrow if you run a crypto business. You have no Bitcoins to give to the customers to whom you owe Bitcoins, no dollars to give to the customers to whom you owe dollars. You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. A few months ago, Matt Levine, Bloomberg's ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. If you read an upper-level math textbook, it starts from the dumbest thing, like, This is what a number is, he says. It begins with an escalator. The other is that FTX is closely associated with a hedge fund called Alameda Research. Also the fact that Customer C had all that FTT in the first place is not a great sign. Also SBFs Substack and premium bond taxation. I joke that people want a lock of his hair.. But your competitors probably offer loans, and it is tempting for you to do it too. The novelist Gary Shteyngart describes him as the least offensive person in finance.CreditBenjamin Norman for The New York Times. Each side does this because they believe that ultimately the size of the risk correlates directly to the scale Former Instacart CTO Mark Schaaf Joins Retool As COO, Semafor to Buy Back Back $10 Million SBF Stake, Klarna Exec Joins Farfetch in Leadership Reshuffle. Here is my author page, possibly. [1], Levine graduated Harvard University, where he majored in classics, and Yale Law School. Everybody used WhatsApp and now everybody writes checks. In 2007, he took a position at Goldman Sachs, applying his knowledge of corporate law to the financial markets. Yet he gives the same impression of personalization to readers who know little about finance. It seems somewhat unlikely. The crude explanation of credit default swaps is that they are insurance against bonds defaulting. Left Coast Crime is an annual conference organised by mystery fiction fans for mystery fiction fans, first held in San Francisco in 1991. published Apr 27, 2018, 10:03:35 AM, by Matt Levine (Bloomberg View) WeWork. As a subscriber, you have 10 gift articles to give each month. Before long, Mr. Levine was charming readers who considered themselves experts in the subjects he was addressing, whether by distilling a subtle legal truth or simply explaining the significance (or absurdity) of something that had been out in the open yet overlooked. Some of Mr. Levines readers write to him and attempt to mimic his style, as if he were J.D. When FTX.com, one of the largest crypto exchanges, was instantaneously vaporized yesterday, Coinbase put out a statement, the gist of which was dont worry, we are not going to be instantaneously vaporized. The part that I want to focus on is this paragraph: There cant be a run on the bank at Coinbase. Above the Laws sister blog Dealbreaker, focusing on Wall Street gossip was hiring. I just hope he doesnt get poached by some deep-pocketed mainstream news organization which will end up stifling the very thing hes best at.. This is Matt Levine at Goldman, and also Matt Levine at Goldman.. If the price of FTT goes down, then FTXs business is riskier, because it has less collateral. [1][4], After graduating Harvard, Levine was a high school Latin teacher. "[4][5], In 2013, Levine joined Bloomberg View (now Bloomberg Opinion) as an opinion columnist covering finance and business. The last time Ilooked at Yahoo, in December, I calculated that the after-tax equity value of its actual businesses, outside of Alibaba and Yahoo Japan, was about $1.7 billion. High up is brushing tongue, a thought that occurred 150.0 times per year, and earplugs, at 100.0 times per year. You have loaned 50 of the Customer As Bitcoins to the Customer Bs, and $1 million of the Customer Bs dollars to the Customer As. Finance journalism isnt known for its writerly voices. Levine's analysis in his column have been widely covered by other newspapers. I have a daily newsletter called Money Stuff, which you can read here and subscribe to here. It is an FTT whale, and FTT is now worthless. Now lets add a few more FTX-specific elements. Comments disabled. Our fully audited ledger identifies your account, your fiat and crypto holdings, and tracks your account activity in real time. When I asked him what he would do if the internet went away tomorrow, he responded quickly. Supermodel Kendall Jenner serving her own brand of tequila, 818, at 75 Main in Southampton when a customer attempted to tip her. The way it works is roughly that you open an account and send dollars to Coinbase, and then you tell Coinbase Id like to buy some Bitcoin with those dollars, and Coinbase buys Bitcoin and holds on to it for you and charges you a fee for that transaction. 6. Terrible. Zhao himself admits there was no master plan to take over FTX. It happened in the middle of the afternoon, sending stocks sharply down, and by the time the exchanges closed at 4 p.m., many financial news outlets were still struggling to explain why. Money and stuff. Actually thats the best outcome. I write the Money Stuff newsletter at Bloomberg Opinion. Play in New Window. Or you can subscribe to Money Stuff and other great Bloomberg newsletters here. Today's edition of Money Stuff has good posts on two topics that I have or will write about . 2. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen . Ledgers, Bitcoin, Blockchain, in which he lays out the basics of Bitcoin's technology. Having closed the deal for Twitter and spent a few days wreaking havoc, Musk has gotten bored and moved on to some other expensive hobby, which we will hear about in due time. Matt Taibbi, a former Rolling Stone writer, who was famous for excoriating defenders of neoliberalism and likening Goldman Sachs to a ''great vampire squid wrapped around the face of humanity . He will come to you and say heres my Bitcoin back, Id like to withdraw my dollars. But you dont have his dollars, or not all of them; half of them are with Customer A. An icon used to represent a menu that can be toggled by interacting with this icon. But one general point is that while some customers will want to borrow dollars to buy Bitcoin, other customers will want to borrow Bitcoin. One is that FTX is an exchange for levered traders, offering products like perpetual futures and leveraged tokens that build in margin lending. After graduating from Harvard in 2000, with a major in classics, Mr. Levine taught Latin at a high school in a Boston suburb. Mr. Levines favorite subjects include insider trading statutes, bond-market liquidity and the ubiquity of securities fraud, but his columns are never boring. Searchable database of over 45,000 postings! Well, you have to borrow it too. And often I will have made fun of them, and they'll be like, 'That was p She told him she liked his column, he thanked her, and she soon walked awaybut his parents were taken aback: What the heck was that?, Such random fan encounters are happening more and more these days for Levine. Programming note: Money Stuff will be off for the rest of the week. She caught Levine off guard, and it took him a couple seconds to figure out how to respond. And then if one day every single customer walked into the bank at the same time and said we would like our money back, the bank would just hand them all their envelopes. Today's Master Minds: Mark "The Beast" Labbett, LaKedra Pam, Ryan Chaffee. The approximately 150,000 people who subscribe to Money Stuff, a free newsletter written by Matt Levine, a columnist at Bloomberg, found an email in their inboxes with the subject line Theres Nowhere to Put the Oil.. It was actually about the Persians, he said. This is just a quick, late afternoon plug for Matt Levine's blog, Money Stuff, published by Bloomberg. You can check your account balance, and Coinbase says you have 0.5 Bitcoin or whatever. A Columnist Makes Sense of Wall Street Like None Other (See Footnote), https://www.nytimes.com/2020/10/08/business/matt-levine-bloomberg.html, Matt Levine in Prospect Park in August. You can subscribe at this link, or read the archive at this link. His column discusses current events in corporate finance and markets, with an insightful, nuanced lens and a dry wit. Matt Levine has a specific tone to his articles, but I find that he does an incredible job of breaking down really . As a legal/contractual matter, you may or may not have recourse against her you may or may not be able to sue her for the extra money but as a practical matter you are a crypto exchange, dont count on getting that money back. How Is That a Good Thing? He never joined an elite social club or spent six figures on a Hamptons summer rental. How Is That a Good Thing? Lets accept, for the purposes of this essay, that founders and venture capitalists are engaged in a simple trade. You might just say no, thats dumb, Bitcoin is volatile, buying $10,000 of Bitcoin is plenty of excitement. (In fact Coinbase shut down margin trading in 2020.) Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. Here is a link. ChatGPT Sounds Exactly Like Us. by Sabrina I. Pacifici on Sep 26, 2021. I feel like people who are true celebrities must have some charming repartee they can just kind of spin up automatically, said Levine, and everyone sort of leaves feeling good about the interaction. ChatGPT Sounds Exactly Like Us. Every new edition of the newsletter goes directly to your inbox. Download. Simply selling billions of dollars of Tesla stock would have upset his fans, driven down the stock price and undermined his image as a committed true believer. Matt Levine is a finance columnist for Bloomberg News. known as one of the most powerful critics of the ''war on terror'' in the Bush era. A $2.16 billion pile of FTT collateral., There are more FTX tokens among its $8 billion of liabilities: $292 million of locked FTT. (The liabilities are dominated by $7.4 billion of loans.). It would go out of business in fairly short order. . If everyone is worried about that, they will all take their money out of FTX. Subscribe to get full access to the newsletter and website. Martin Shkreli tells Do Kwon Jail is not that bad.. Mr. Levine was born in 1978 and grew up in the suburbs of Long Island. But FTX doesnt have their money; it has FTT, and a loan to Alameda. Matt Levine in Prospect Park in August. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. Thanks! Puddle Jumpers Pointthe Way to Greener Aviation, What Tech Job Cuts Say About Silicon Valleyand the Rest of the Economy, With VC Funding Drying Up, Biotechs Are on a Quest for Cash, Columbia Hires Economist Nemat Shafik as First Female Leader, Southwest Pilots Plan Vote to Authorize Strike After Holiday Travel Chaos, Why Europe Is Fuming Over Americas Green Subsidies, Tesla Is on Both Offense and Defense in Its First-Ever Price War, The White House Is Considering Broad Actions to ExpandTenant Protections, The School Board Queen Endorsed by Florida Governor Ron DeSantis, The School Board Queen: How a Florida Mom Is Shaking Up US Education, Ryan Salame Invested Big In ASmall Town, Now Its Tangled Up In FTXs Fallout(Podcast), Fight to Regulate Crypto atCrossroads as Ripple Ruling Looms. It starts from that basic premise and builds from there, and I love that format, and I love that ambition for writing about complicated topics. Because Bitcoin is such a recent invention, its possible to start with the whitepaper and build from there to the major crypto shenanigans you see today.
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