The Goat, A Giant and Mr. Shoes.

Greetings and welcome to Inside Baseball with Old Chestnut. I'm Liam Allen with my friend Morris Sachs. Good morning, Morris. Liam, how are you this fine day? Wonderful. Wonderful. I also want to say good morning to Dr. Torsten Slot. And everyb and everybody over at Apollo. Good morning, everybody. Good morning, Dr. Slock. Um, and good morning, folks Apollo.

And good morning to Marco Marko Kalanovich too. Good morning, Marco. I want to welcome in all our loyal listeners. Dr. And the guys at Bloomberg. Let's not forget the Bloomberg people. All my friends over at Bloomberg, especially Bloomberg Surveillance, uh Tom Keene, John Farrow, Lisa Obromitz, Michael Barr. Everybody, it's nice.

to see all of you on this one on this wonderful Sunday morning where we had an exciting week in the markets. We have a holiday weekend coming up. Um and a lot of good action to discuss with my denizens. of the Bond World Morris. So welcome, welcome all listeners, especially the Platinum subscribers. Good morning, platinum folks. Okay. First of all, let me get the executive producer credits out of the way. Of course, life coach Leslie Harris. Um

my good friend uh as yours uh Edward George Fisher. Yep. Morning credit. And uh Uh a friend of mine named Jeff, I've asked him if he wanted an executive producer credit, but he said no. Okay. Um he likes to keep a low profile. And in his line of work, you know. Yeah, it's important to stay out of the public eye. So that's interesting because a lot of people really thrust themselves into the public eye. Um

You know, be we we we touched on it last week, people that like to talk publicly about their trades and about their book. Um, but I understand someone in your circle trying to keep out of the public view. Um, because you know, what what are the pros of of of entering the public realm? I made a blunder yesterday. I I've Said many times, uh I have anger management issues. And we had an incident here yesterday. And um Please go on. No, I well Day one. Day two or day two we had it.

In my defense, and clearly I don't have much of one. Uh yesterday morning I was awakened by my good friend and co-host Liam Allen. Uh who was upset because it had become apparent on at Cesspool of Twitter. Uh Dr. Slock Had been cribbing some of our material. Maybe not, maybe it's a coincidence, but you know, this was not us. bringing it up, but um anyway, you know, I'm not a uh I was on Twitter uh for I I don't know. I mean ten minutes. It it was it was

Almost as long as the time I worked for Bobo's hedge fund. That's how short a period of time it was. But um, you know, that Twitter is kind of funny. Um, the comment was made to me. by my friend Jeff. He just talked I I sent him a note saying do you um as he has a Tesla as as does uh uh Mississack. And both these people are of the the Jewish faith. Elon has had some had a difficult time. And this is my my my

friend Jeff said he he blows up Twitter, blows up relationships with the Jews, and today blew up a rocket. I'm detecting a pattern. Um You you know, we talked about uh torsen SLOC copying. You know, I think it goes deeper than that because um, you know, the Quasi anti Semitic comments from Elon Musk Happened not long after uh we on this podcast, Inside Baseball with Little Chestnut. I I think I

remarked how shitty the car is, or something to that extent. And the next thing you know, he's smashing the Jews. But um, you know, he suffers from uh autism and um I don't have a degree in the in psychiatry or neurology, but I'm I'm well familiar with those things. And there's a couple of people in the public domain, um, Elon Musk and then uh the low-hanging fruit, Kathy Wood. And I've diagnosed them with personality disorders.

Um, let's start with Kathy Wood. Um first and um I'm reading from Google, so if I'm wrong, I would take it up with Google. But quoting, narcissistic personality disorder is a mental health condition in which people have an unreasonably high sense of their own importance. They need and seek too much attention and want people to admire them. People with this disorder may lack the ability

to understand or care about the feelings or others. And I might add just as an aside, editor's note, or the financial well-being of others. And You know, Kathy, where are the customers yet? You know, um she had a big week. There was talk about how how how well ARC did this week. Well, it's because as she said, well, you know, when the bond market rallies.

Our stocks will do well. We opined when something you claim to have a compound annual growth rate of forty percent, whether the tenure note yields of four or five, I I don't see how that comes into play, but Um in any event, uh, without doing the Hava, um old chestnut again had a

a successful week. Um people are now searching for uh yield and um but uh Before I get too far down the rabbit hole of slamming people, I'd like to talk, if you don't mind, a little bit about the GOAT. Stanley Druckermuller and he has gone on record. Talking about owning a massive amount of two-year notes lever. And in that instance, what that indicates to me is he's probably. bought the two year future. Okay. Because To leverage a treasury

The way you would go about doing it is you would go to a bank and you would do a repurchase agreement, which involves all s all sorts of legal documentation. And there's there's Well, I would say it's de minimis, there's credit risk. Okay. However, if you go to the futures exchange, um

You you have credit risk, but it's a different order of magnitude because the exchange guarantees every trade. All the members of the exchange are on the hook. So you ain't gonna have a problem there. So my guess is. The Druck went out and bought a bunch of two-year futures. And uh in addition to that, he was short 30-year treasuries. Now, I don't know if this will be up in time. But uh you have that Bloomberg page I sent you. I do. Um so for our listeners.

On our website, I have posted a Bloomberg screenshot which shows the US Treasury market. And um I did this for two reasons. I want to show an example, but more importantly, the marketing department wants us to drive trap traffic to the website. I I you know, I d I just work here, right? So are you are you looking at the screen? I am. Okay. I got my terminal open. There you go. So if you look sort of on the left hand column. In the middle, you'll see...

When issued notes and bonds? Yep. And then okay. So basically this is a listing of what we call the on-the-run Treasury security. So uh as you've all read in the newspaper, they issue Treasury securities all the time. And for a period of time, uh the most recent issue. Security would be referred to as the current. So if you wanted to trade the current two year, you would just say. better off with a two year and it it would be kind of the colloquial way to trade these

And so what we have here is a listing of all of the current issues. So the the 5% of October 13, 31, 2025, known as the two-year note. You read across that's the price is par. six plus offered at PAR six and five A's. So it's a very tight. It is an example on a million dollars that spread from PAR six plus To power six and five A's is thirty-nine dollars and six cents per million. Okay. So In the business we call that tighter than a frog's ass. Really looking for yield there. So

What I want to show you here is what the goat has done. Let me ask you a question. Is that normal for that to be that tight? Yeah. Okay. I mean it's it's typical. Okay. I mean, during times of crises it will widen out. But this is more often than not the way it is. And by the way, on those prices, ginormous size. Like uh I I would imagine on the two-year note, it's six and five A's. You could buy a billion dollars, no problem. Easily. Yeah.

I mean, in fact, it would be so easy, we wouldn't refer to that as a billion, we would call that a yard. A yard. Yeah, I know. So yeah. I forget who you traffic with.

Should be talking to the audience here. So um why I think it's important if the audience gets a chance. to s to look at this page, I I th there's things here that I I think are significant. So What the goat has done is he has put on a curve tray. meaning he thought the shape of the curve looked wrong, and it would

be ultimately a normal shape curve, meaning the shorter maturities would have a lower yield and the longer maturities would have a higher yield. And I think last week I opined that as a professional trader, Uh I would only put on Arbitrage trade. That paid me while I was waiting. Mm-hmm. And he has put this curve trade on. Except the dynamic is such that he's paying every day to be in that trade. Meaning if it doesn't move in his favor every day he loses money.

So um Before we we go too f much further, there's an interesting dynamic here, which I don't want to say I've only seen it You know, five times in my career, but it I haven't seen it 20 times in my career. On this day, um, which I I suspect was Friday, to your note. The one that the goat was long a massive amount of is down on the day. Well, not only simultaneously, but at the same time, the 30-year note, which she is short of, was up. Yeah, fifteen basically.

You know, um correlation is not causality, but generally And when I say generally, north of 90% of the time, the interest rates move in the same direction. So to see something like this. Noteworthy. Uh the the most noteworthy example of this was when I was a youngster at Aubrey Lanson and they had the Plaza Accord to weaken the dollar. Yeah, everybody, yeah, I know. Yeah, I mean this is one of those days where I believe the two year note.

Took off to the upside and the long bond shit the bed because the weakening dollar people were concerned was going to create inflation, yada yada yada. I don't know that anything in particular happened on Friday. To cause the market to do this. My suspicion is, and keep in mind, you know, I'm retired and I don't have many uh contacts in the business anymore, but my suspicion is. So many people expect the curve to normalize, meaning upward sloping, that the gang is all

you know, piled in on the on the wrong side. And as what many traders, including our executive producer Leslie Harris, would say, the markets job is to shake the people and see who falls out. And and this is a good example of uh of that. So a guy like the Druck I mean to him it's not about the money, it's all about the game, right? But

To go out in public and say, I think the shape of the curve is wrong, I I agree with them. I think the shape of the curve is wrong. And I think over time it will normalize. But as I've said in the past, and why I've virtually eliminated all of these paid subscriptions is in the end, it's not about being right. It's about making money. Hence my comment about um I only want to be in on trades that I know are going to be for a long time that pay me to be in them because.

You know, unless you know of a specific catalyst to make the trade work, and and there are a number, you know, I think I gave you the example of futures contracts expire in 90 days. Or Treasury auctions can be a catalyst or the year end, the the cleaning up of balance sheets can make trades work. Um but there isn't the catalyst.

make the curve become normal is time on his side or is time against him aga huge against him totally against him but wait there's more just just to uh Recollection. I I had a bad day yesterday. I I had a anger management issue, which I don't know if we'll have time to discuss, but I uh it it was it was an ugly moment.

Maybe one of the worst ever, but we'll go back to that then. We'll come back to that. Hopefully. Please. Um I said, you know, the drug, as I said earlier, probably bought two year few. And uh, you know, um back in the day when I worked at Greenwich Capital. We had uh the intermediate term covered with uh myself and uh E.G. Um and the front end, the um

let's see the three year no it and in was run by two guys whose names I don't have permission to use, but I will refer to them by their uh Nom de Guerre. Um Mr. Shoes and Giant. Okay. Now they were specialists. They may still well be, I don't know if they're working. But they ruled that two-year future with an iron fist. Mr. Shoes and the Giant. Giant. Giant, by the way. was in his year the third smartest guy in China.

Come on. Apparently, and and this has been verified, they give tests to the Chinese kids. I believe it. Yep. And he he came like dirt. And he and you guys got a hold of how you guys well because he he came in as a summer intern. And he got to be friendly with Mr. Shoes and and yeah, and he really good, really good, really good guy. Um he did one day. Uh and I and I chose to Ultimately admire him for this. Uh Giant had this trade-on called the the Thai bot basket. Now, as you know, the Thai bot.

was or is a currency. Was. And it was sort of pegged to the dollar and there was some kind of ARB. And this is one of those learning experiences for me where I didn't really understand the trade, but it seemed like it was a thing to do. And um It went south. meaning we went the wrong way and and um guys were starting to unwind it and I met um executive producer Leslie Harris. to play uh that angry game uh I'm trying to eliminate called golf. Mm-hmm. Mm-hmm. And I remember uh

Leslie saying tonight guys are going to get a lesson in the forwards. Now So there's different ways you settle trades beyond the scope of this discussion, but um Giant had taken half of the trade-off, but he needed the market in Asia to open to take the other half. And Uh needless to say, to cover this short, we ended up paying a thousand percent. Literally 1000%. Now it was 1000% for one day. Yep. Okay. But thousands of thousand. Yep.

Um and why I bring it up, not to to poke fun at Giant, but to praise him, because There was no whining. He he took it like a fucking man. He manned up, he owned it, the whole thing. We took the hit and and we moved on. But Anyway, so you have Mr. Shoes and the Giant, who worked with me in Eiji for years.

Again, why am I bringing this up? Well, the goat, the druck, is now long. A ginormous, what was his a massive amount? Yeah, massive, massive, yeah. Okay. So I was sitting this morning at the breakfast table, admiring the blue sky and the sun. And you can already tell my mood has improved, right?

And I'm thinking about, you know, what are we going to talk about? Do I wanna focus on my meltdown yesterday at the front gate or do I you know, do we wanna talk about the market? Oh, this happened at the front gate.

This is we'll go back. We'll go back. I just a good if you're if you're teasing this, this is good. Okay. Go ahead. Good is all relative. I you know, I've got children who listen, but in any event, um I realized that if the GOAT was long two-year note futures, it's more likely than not that he bought them from Giant and Mr. Shoes. And so I texted executive producer E. G. Fisher and I said, are two you know futures rich? And he said, yeah. And I won't put the number on it.

But based on what he told me, they're really rich. And now what does that mean? What that means is When the goat goes to get out of these two-year notes, these guys are gonna put him in the fucking potato sack and start it beating him relentlessly. And that's if he's smart. Okay. If he's not smart and he tries to do the calendar spread with them. If he's cle if he thinks he's clever, yeah. No. Nishkit, do not, you know, I'm telling you. It's you're talking about

Guys who know what they're doing. And Stan may be the greatest stock traver ever. And Mr. Shoes and Giant may not be the greatest futures traders ever. But they're pretty fucking close. And Stan. that these guys have. Yeah, he's dabbling in the bond market. He's not a bond right. I think he kind of publicly I think he kinda hinted at that and he said, you know And did he he publicly I mean it's on

He's been real up front about buying the top of whatever, of O one or whatever, where he got he got caught up in the in the hysteria and made a big move and he learned from that. So y you know, it's not a flawless track record. Well

So I I wanted to bring this up, not that I revel in this poor guy's loss of wealth, because I know it's everyone struggles to make ends meet, but we're gonna get to see in real time. assuming he still has the trade on, how he gets himself out of this position. Because, you know, you're talking about a lot of two year note futures and uh You know, these guys know how to extract a pound of flesh, which is why I go back to the calendar spread. One of the things we used to do would be try.

And keep the front contract fair enough value. and push the the advantage to the back contract and let guys kind of feel like, oh, they're getting some breathing space and they can push the problem off three months. And then we had them. Yeah, then you you're setting the hook and you're just letting them get away. Oh yeah, you just sending that line. And we would literally have the these trades on for a couple of years.

And the beauty of the thing is people don't, it's like the common mistake is people will say, well, I don't have, you know, negative carry because I got two year futures. You know, it's like that's almost as bad as saying you have a net jet share to me.

You think because you don't pay an interest charge that you just give it to you for free? Yeah. That's up there with checks in my mouth. Right, right. Wow. So anyway, uh Uh uh you know, I've babbled enough about that, but it is interesting to see. To me, you have this confluence of events where the front end goes down in price, up in yield, and the long end goes up in price, down in yield in an environment where you would expect.

the opposite to be happening. And and I think if memory serves, I mentioned my old colleague uh Rico would tell me about being in a political market. You know, the best thing to do is to get out because rationality uh leaves, you know, uh leaves the theater. And uh so I I know for me, not being hampered by having investors or leverage It's been pretty uh, you know, I guess this is a quasi hava. It's been pretty much easy pickings because, you know, as I

would we would talk about, you know, early investing, you know, decide what your goals are and then kind of back into those sorts of things. So for me, you know, we got the levels that I thought were, you know, relatively safe. and unlevered. And, you know, as they crapped on things, we judiciously picked picked them up. And and I remember at one point during our discussions, I said to you about Munis.

You know, you can always sell a Muni. You can't always buy one. And so, you know, I had bought a bunch with our our gang and uh they were marked pretty good against me. Um Но, oddly enough... Has uh uh the worm turned, all of a sudden I got a call um people were looking for some of the things we have. And, you know, I wouldn't say I'm in the same league as Mr. Shoes or Giant in terms of

extricating the last couple of basis points. But you know, when I have something people need and I don't need to sell it, I You know, I'm pretty good in negotiating. So I think as my brother is fond of saying, I made most of my money sitting on my hands. I I think I'll I'll sit sit for a while. So but um

Uh yeah, I I don't I don't know what uh what else really. I um continue to see Kathy Wood. Uh You know, like the joke, where's the most dangerous place? It's the space between Kathy Wood and a camera. I almost wonder. If anyone, any uh broker who has their client invested with her, Whether they've are violating their fiduciary responsibility because she's clearly got issues and um

You know, as I mentioned, I think I said earlier about, you know, um a narcissistic personality disorder. Um How do you feel about your buddy Billy Ackman coming out and uh s just just Dude, he loves Twitter. He loves to talk on Twitter and he has an opinion about everything. And before the um Before the Nazi flags had even stopped waving, he was uh standing by his man, Elon Musk, pronouncing him not an anti Semite. Um Which is just a tough take.

to to to be taken um from him on twitter knowing his hip well he clarified that it's not his personal investment it's Pershing Square's investment in Twitter. Okay. Oh yeah like Guns don't kill, people kill. Exactly. Thanks, Bill. Thanks for clarifying that. I don't I it in the money part. I believe Bill is telling the truth. I I think whatever his views are are his views.

Um, he's not doing it for the money, although he puts his money based on his views. So I you know, I I struggle with that. I I also think that having um the uh emotional problems that Elon Musk has, um the um autism You know, they have and I I I don't mean to be mean, uh but he has uh by his own admission, he's autistic. Yeah, Asperger's he says, yeah. Well but that's right, right, spectrum, yeah.

No, it it's autism. It's plain and simple. And so when you go look up characteristics of autistic people, you know, they have trouble with Social cues, they have right. So um The fact that he goes in and parses out single words. Of a letter from Osama bin Laden. Because that's part of the illness, right? Why Bill needs to go and try and defend. an autistic person, I I I I I'm kiff confused a little bit.

But since you mentioned Bill, um, who, as I've told you, he and I were business partners and triple A guy. Unbelievably generous, the whole thing. Yep. But you had mentioned. uh the Vanity Fair article about him taking on Dan Loeb to a bike ride. Now it's my favorite. It's my favorite. Let's just chat about it a little bit because I I I think this was kind of fun.

So at one of these hedge fund conferences, when I was working with E.G. and we were in the fundraising mode, I met Dan Lowe. And when I say I met him, I shook hands with him. Maybe 15 seconds of conversation, like I talked to Jerry Seinfeld longer than I talked to to Dan Loeb, but I'll tell you something. That guy is fit as fuck. Okay. I think he was a surfer. Try guy. Yeah. He's a tri athlete. So yeah, he's got the you know.

I can you can just tell, you know, the custom made shirt, there's no there's no ounce. I mean it was like me when people were telling me to eat a sandwich kind of thing. Yeah, yeah, yeah. Yeah. That that ship has sailed, by the way. But in in any event, um So you tell the story. Like there was a um supposed to be a bike ride.

Yeah, so d so so Dan and Bill are in in Bridgehampton. They're out in Bridgehampton in the summertime and they're gonna go for a bike ride and I believe they were gonna go out towards Montauk and meet another group. All right. So Dan and Bill go out, um And and to and normally like say you're gonna meet the other group.

You you probably you're you know, the general etiquette is you slow down. Hey Morris, good to see you. Ed, how you doing? Bill, good to see you. Okay, Dan, nice. All right, yeah, we're heading out to the lighthouse, all right. Chit chat for maybe two minutes and then you can spool up and go. Apparently Bill didn't even slow down. So they there's the intersection on on Sunrise Highway there where Dan slows down to meet his six friends and chit-chat and Bill blows by them. Okay.

really poor form in the cycling community. Okay. Heading downwind. Yeah, downwind. Yeah, yeah, yeah, yeah, yeah. So so Bill hammers it. Gaps these guys off off the front and he's you know, he's winning the race. Which is incredibly poor form on a group ride, especially with a bunch of dudes, probably guys he didn't even know. Okay. So there's there's multiple multiple problems. The race is out and back. Yeah, yeah.

Exactly which is why I asked about the direction of the wind. But but it wasn't even a race. It was supposed to be just a ride, the group ride, you know. So like you know that the joke the women tell? What's what do you call three guys on a bike? A race. A race, yeah, no, I know. Um so he gaps them. And then he blows up, okay? blows up. It sucks. Like y y there it sounds ridiculous.

Vanity Fair made it sound like he got shot, okay? And he was like nursing a like a a wheezing chest wound, okay? Really he he got leg cramps, which sucks on the bike, and yeah, you can't pedal. That sucks, okay? But It's embarrassing if you blow up the ride and then you blow up. Okay. That is. And let me tell you something, folks.

Montauk to Bridgehampton is maybe 15 of the flattest fucking miles in the East Coast. Okay. So my daughter could skip pedal her tricycle faster than Bill could pedal home, all right? One guy waited for him, nursed him back. But wait, there's more. Instead of like emailing Dan and the other guys in the group being like, Hey, sorry I was a douche. That was pretty, you know, like pay or or emailing the guy, thanks for waiting. It took him weeks or months.

to like apologize for being a clown on the ride. So Dude, that really shines a light into someone. Okay. And I personally I'm going to judge him for that, okay? I am going to draw conclusions about you personally from that, okay? Uh it might it might be wrong. Okay. And it might not be fair, but that's in the public record and that tells me a lot of things that I that I want to know about the person. Okay.

I know people that have done that. I have d I don't think I've done it myself because I knew better. Okay. But it's very, very, very telling. Okay. The way someone operates in a small group, okay, is indicative of them as an overall person. Okay. So I understand you're competitive. And you think you're athletic.

But this is really there's multiple, multiple issues with this, Bill. Um so I'm not gonna let you live that down. And if I see you again at the party, I'm gonna break your balls about it. To aug to augment what my colleague Liam has said, there are I think it's called the Velomate. Yeah. It's the rule the rules of cycling. And I think there's ninety-nine rules of cycling. I'll post that. I'll post. The rules. Um, rule number five. Okay. I've had a doctor, I've had a legitimate MD say to me.

You need to think about rule number five. And rule number five is harden the fuck up. Okay. So maybe guys in Lycra seem a little strange. But it's it's the fucking Marines. And you know, the beatings continue. Well past morale improving. Um that i what I it and I think I'd mentioned this before. So Ed and I would go to these meetings and Bill would be there and uh Ed and I were really fit. Ed Ed has always been a better

cyclist than me. He he really gets the strategy. There have been times in our lives where I might have been a little fitter or Ed might have been a little fitter. But Ed has always been a better rider than me. Let me say this. And I let me talk about judge and cyclists. And I'll give you a perfect example. When I first met Ed, Ed had gray hair. And I'd be like, oh, I'm gonna drop this old timer, no problem. Every time I looked over my shoulder, right there on my back wheel is it.

Okay, I learned that was a learning ex the I was a little punk kid and I thought this old timer, I'll get rid of he'll be gone real quick. Him him and Morris want to chit chat. Uh we're gonna get rid of them real quick. Wrong, dude. Undropable. Undropable. And here I am at 42. Ed's gotta have 20 years on me. I am washed up now. Ed'll ride my legs off tomorrow morning. Okay. So yeah, to Morris's point, Ed is a beast. What one of my favorite strogma posts was yours where you said something like

Old chestnut had me on the rivet with 20k to go or something like that. That was that that was the highlight. But Ed and I had concocted this scheme that Um, we were gonna see if we could somehow trick Ackman into challenging us to a bike race. Um, I don't care. I I mean, this is years ago and I've had life-changing events, so I can't ride like this anymore. But uh Ed and I Uh I don't think you were there. We went to a a sponsor event.

in Minnesota. Ed was there, Mike was there, Matt was there. We rode a sub-five hour century ride. Okay. So yeah, we we were fucking ripping it. And uh that would have been a lot of fun to take on uh take on Ackman. I I'd love to see him try Leadville if he's looking for a challenge. I that to me is the

You know, that's the Mount Everest of Cycling. So but the incident. So what happened? You get to the gate and they wouldn't let you in. Right? That's gotta be it. I mean you get to the gate, you haven't been there. Can we talk about Canada first and then we'll come back to the colour? I don't care about Canada. Nope, it's cold, they got problems, their prime minister's In the winter in this area, uh Scottsdale is called Silverleaf. And I picked it because uh my daughter's Uh father.

father-in-law had bought a place here and our friend Mike had bought a place here. And um we wanted a winter place. So this just kind of uh uh seemed very normal. So it's one of these high-end communities where there's like the guard gate and there's one side to come in and one side to go out. And so I may have mentioned Last year. I found I I couldn't get in and out of the electric portion. No. Oh yeah, it was too low to the ground. Yeah, yeah, yeah. Yeah, I said the EG is like

You know, is there something wrong with me? He's like, what do you mean? I said I like gotta crawl out of the thing. He's like, he says, doc, it's a sports car. That's how you get in and And then I decided the electric cars were bad for the environment. So anyway, my neighbor suggested I get this portion. Uh Uh Taikan. Taikan? Oh you got the Kaiyan, the truck. You got the truck. Yeah, the truck.

Yeah. You got rid of the taekan, you got the cayenne. Okay. Yeah. But I got the the CTS one, which goes zero to sixty. as fast as the electric. And and the ad says one of the reviews says it drinks dinosaur blood. Which so anyway, I've fallen in love with this car. And um I had it in Connecticut. Uh, but I want to drive it in Arizona. So I contact my neighbor, who's a wonderful guy, and he he

buys and sells cars left and right. So there's a car being dropped off in front of his house like once a week. And and I don't mean any car, like he got this Ferrari that was part electric, part gas. I I I whatever. So he gives me the name of the trucking company and I call the guy up and I said I'm a friend of so and so. Where are you? I said Granite. She's like uh Well, you're a friend of Mr So and so, so we'll do it.

And he looks on the map and he says, I I can't get my truck down your street in Greenwich. And I said, Yeah, I I know that. But if you drive towards me, there's a street. call Mountainwood and you can pull well there. Well anyway, he calls back and says, I can't drive down Mountainwood. The truck's too big. Yep, yep. Um he said, well I'll just park on Lake Avenue.

Lake Avenue, folks, is like a windy two-lane double C line. You're not parking a semi on Lake Avenue. So he comes and he parks the semi on Lake Avenue. And I bring the car down the lane and out jumps like the gentle giant, like the nicest guy. And At that very moment, the cop car shows up and You know, the lights don't go on, but the cop gets out of the car and he starts talking to this gentle diet giant. And next thing you know, they're laughing and high-fiving and

The cook the car goes on the truck and he says, I'll I'll and this is like Wednesday. Yeah. He said I'll I'll be at your house Friday. I'm like, great. So we have this app. You you put in the name and the company. And when they show up, the guard looks and he says, okay. So I do all that stuff and and I'm kind of hanging around, you know, cutting up boxes and stuff. And uh the guy calls and he said, the guy at the gate won't won't let me in. I said, what do you mean? He said

They say we're not allowed to drive trucks of this size into the into the development. And I told the guy, I've delivered 50 cars here. So they go back and forth, back and forth. I realized that there's an impasse. So I get in one of my cars and I drive to the front gate. And as I I drive out, there's it's chaos, right? There's cars everywhere. And I realize, having been through this situation before. If I low key the thing, I'm gonna be there for a couple hours. Yeah.

So I parked the car such that nobody can leave the compound. Yep. Right? And now there's a line of rich people waiting to get out. Perfect. And um I'm going back and forth. The truck driver's going back and forth. The policeman Is there? I don't remember whether the lights are flashing. They want the guy to back. the semi onto this road called Thompson Peak. Parkway, which is a highway. Yeah, okay.

People don't ride their bikes on this anymore, even though there's a bike path. Understand people get killed. Uh and the guy's like, I cannot offload this car. And and so they're going back and forth. And in the meantime, There's a line of rich people who can't get out. Right. And I'm so angry at what's going on. And I'm trying to keep my mouth shut, which, you know, is nay impossible. I start shaking. I'm like I'm like fucking losing it. I had to sit down. I was so fucking angry.

The truck driver comes up and he he helps me up and he says I I will get your car to your house. Just just relax. I'll take care of it. And I go back to my car. And a couple of these guys, one guy in particular, starts opening his mouth at me about you stupid blah, blah, blah, blah, blah. And I looked at him and I used The F word and then the C word. Can't understand normal thinking. And he walked towards me and he squared up.

And he looked at me in the eye and said, What did you call me? And I I repeated it. Mm-hmm. And he kind of shrugged and walked away. So that's that's pretty much how it ended up. That was the end of that. That word that I mean like there's there's nothing you got it. You've you've ended the you heard. See the good news is Where I live, I'm not a member of the golf club. So they can't kick me out. Yeah, yeah. But I in hindsight. It probably wasn't

When I told Cheryl what happened, it it didn't go well. It did it didn't go well. And then this is this is the one flaw in her logic. She says, Why'd you even bother telling me? I said, Well, honey. What would you have said? If I didn't tell you and you heard about it. Yeah. Yeah.

But speaking of Cheryl, I wanted to uh mention something. Uh it it it delves into the political realm a little bit, but um I think it's noteworthy. So They have this community of conscience diversity breakfast in Westchester County once a year. And it's very successful. They have something like 400 people from

faith leaders, clergy, elected officials. So like George Latimer was there. I think lit Letitia James, she's okay. She she sent something. I think Governor Hokel. Okay. So W the reason I bring this up is you have all of these people who deal with religion. locally and all the religions. And these people every year get together, have breakfast together, and celebrate their differences.

And they celebrate their similarities. And it's a wonderful event, and it's always sold out. And everyone comes away feeling great about it. And the reason I bring it up is because. I like to contrast that with what's going on at the universities of our country, where you have people who expound political beliefs. When they're supposed to be teaching kids things about history or science or what whatever. And you have the people in the mix.

the religious people working hard to get along and you have the universities stirring the pot. And I can tell you, I can tell you the moment. This thing collapsed and So Cheryl and I went and paid a visit to youngest daughter at Northwestern University. And um it it was in the winter because I remember it being real fucking cold. So it had to be sometime uh after August. But youngest daughter had a roommate who

Uh and she was kind of moping around and we were like, what's going on? And she's like, I'm I'm so upset that Donald Trump is now president, I don't think I can go to class. And if I have this right, I think they like canceled classes. I think they postponed tests because they had safe spaces for kids. Yep. Give me a fucking break. Yeah. You know, grow up.

Grow up. You know, you didn't like who was elected president, so you you you can't carry on. Yeah. What are you gonna do later in your life when something bad happens? It's generation. And and I I I just you see these colleges with these massive endowments. So Harvard, let's take Harvard, they're the low-hanging fruit. I don't know what they have now, but when I traded, they had like a$40 billion endowment.

Now, being a free market guy, if people want to give their money to Harvard, then you give your money to Harvard. you get a tax break. So you and I, okay, are funding Harvard's ability to say these completely inappropriate things. Yep. Why why do they need forty, fifty billion dollars? I I mean they don't need it, they have it, it's the law, but you know, I I just it just sickens me when you hear all this information, which Clearly, being Jewish, I'm sensitive to the anti Semitism.

But people shouldn't kid themselves. It's like once they get done with the Jews. Then they're coming after you. Ever, you know, minority, everyone's part of a some minority, right? I mean, y you might say white. Middle-aged men aren't a minority on Wall Street and they're coming after them. You know. Um, and and and I have to tread lightly here because um We have a a big audience.

In Canada. Right. And one of my kids is in Canada. And so uh between me going to visit her and then you and I having to go up there for marketing purposes. Um, I don't want any trouble with the government because, you know, we have to get into the border. But it's an interesting interesting to me. There's talk that um, you know, Prime Minister Trudeau. His mother was quite the party girl back in the day in Studio 54.

And I don't bump into Ian Schrager very often, but maybe every two, three, four years our paths will cross. And apparently there's a rumor that uh Maggie Trudeau had an affair with uh Castro. Oh, it's a fact. That's not

That's a fact. Oh well, you do a side by side picture. You you could do you do those two and you do Sinatra and Ronan Farrow and somebody else. I mean it's it's a stone cold lock. Well the the reason I bring up the Trudeau thing is'cause he's in there you know, mouth and off about Gaza and Israel, you know, i he he should he should uh uh stick to his own knitting because it sounds like there's something going on where he has diverted a lot of government contracts. to businesses

uh that have employed people in his family. This is all hearsay, but you can do your own research. But again, you know, we have a huge audience in Canada. Everybody knows that thanks to um Kevin Muir that saw something in you and me and decided to give us a break and now we're, you know, quite serious. But you know I I I I know sometime next year we have to go up to Yellow Knife and Moose Jaw.

And of course we love to do that meet and greet at the Al Capone Museum. Remember that was a big hit last year. I know, I know. And uh, you know, you and I like to do that um K O M segment in Lumsen. Before I forget, before I forget, before I forget, you mentioned Kevin Muir. Um You wanna respond to uh friend of the show, uh the convexity maven, Harley Bassman, who w who said that trading the two-year is for babies, okay?

Harley went on Harley did a great Harley did a great segment on uh on uh what's the name of the show? I'm sorry. The market huddle. He went on a market huddle and he and Kevin They did their they talked and Harley did his convexity thing. Um, great segment. And he mentioned uh it was nice, it was lovely to me. Thank you, Kevin, for mentoring uh Morrison Old Chestnut. Um, but but Harley did say that trading the front and trading the two-year is for baby.

So I just uh you know that kind of I took note of that. I just wanted to see if you have a a formal response. I don't think it was antagonistic. I thought, you know, and he was and he spoke very highly of you, but I just did take note of that. So I I just want to get your answer. I I take I take you've really cut into a vein because Uh I am really, and you and IG now are really the last remnants of a great tradition of two-year-no trade. Okay. So I had worked at Aubrey Lanson.

Which was uh started by Aubrey Lansston, who was head of bond trading at First Boston, and he went out and raised money from uh the Eccles family in Salt Lake City. As you know, the Federal Reserve Building, also known as the Eccles Building, okay. There there's a relationship there. So as a young man, I got a job at Auberg G. Lanson where we were hyper-focused on the two-year note.

And the man who was the head at that point, Dick Youngdahl was like uh chairman emeritus, the guy's name was Jack Freeman. And there was a saying, if Jack Freeman jumped out of a window, you should jump out with him because there was a net full of money waiting for you. So I got trained in the two-year note by Jack Freeman and John Ford. Uh John was more of the bill specialist. Okay. And in that day, that the two-year note, because that's really what's most susceptible.

吃饭跑 And so I uh that to me is like when I'm gone. That's the end of the line. Like the guys who were the, you know, the whippers and drivers. Uh, yeah, that's another one of these. sad bits of history that's gonna go when When I when I pass, although now that you've named your maybe that's good because you it cements your legacy. There'll never be another you. So like you've got it stone cold, and if they put it if they if that's the end of it, if there's that's great.

you're it's like babe ruth you know you're never gonna have another babe you're gonna have hot dogs beers and hit sixty home runs with with my performance at the gate yesterday i uh everyone's gonna be pretty fucking happy there's not gonna be another meet Um yeah, I I don't I don't know what the thing about Harley and um

I could have sworn he said he he didn't know who I was. No, no, he said he just said I don't know Morris personally, okay? Which in front which to me means he listens to the show every week. So he feels like he knows Well I I I I've traded billions of dollars of options with him. Okay. And I've met him in person maybe once or twice. Okay, well he's being respectful. But what I found perplexing is

First of all, very talented man. No question about it. I I think he i i is the real deal. 100%. But what you know, our job here. Our mission statement is pretty simple. And it's not the destruction of Israel. From C to C, or whatever they know. Our mission here is pretty simple: balls and strikes, right? Okay. So for years Harley would put out his research pieces pro bono and I would scrutinize them because they were they were elegant.

Uh he has this uh OCD thing with picking colors. Like he won't say red, it'll be like burnt orange. I I don't know. But that that was his thing, right? And more power to him. He's giving back by talking about but he would routinely pontificate about taking time off and taking vacations and no one on their deathbed ever said they and he said, and don't take a vacation and go to the four seasons, you know. Get in the car, see America, yada yada yada. All completely appropriate.

But what what I am troubled now with and with now, and especially given that interview, which I I didn't feel like anybody brought their A game to that interview, frankly. Um He's hawking this product, which is a long dated put. Okay. Now, look. I know we joke a lot about charging and this and that, but we don't We don't take any money. There's no sponsors. We won't even interview people, right? Because it's just just you and me talking, right? Why is Harley it gotta be north of sixty?

Going around doing grants conference, talking to Kevin Muir, talking a product, like Be spend time with your grandkids. So what do you you know what W at this point in your life, this is what you want to be doing? Sounds like he's having fun. He sounds like he enjoys it, dude. He's w you know I asked you last night while I was sitting at home last night. I'm sitting on my couch, all right. And I'm like

What the fuck am I doing here as I'm staring at the two ten yield curve chart at nine thirty on a Saturday night? I'm saying to myself, What what kind of fucking loser am I now? I was like,

And then I'm saying you've achieved total consciousness. I know. Whenever I meet people and they talk about the show, they're like Where's Liam work? And I said, We have an agreement not to discuss it. They're like Goldman. I go, I I can't say. Morgan Stanley. I listen, you can ask me all day long. But we respect his privacy and and and there it is. So I uh you know, my hat's off to you. Uh, for how far

You've come and you do put in a lot of hard work and I I admire that. I mean, first of all, you picked up right away it's it's twos tens, not tens twos. Not gonna make that mistake twice, okay. Dude, speaking of that speaking of people asking talking to me and and talking about the show, I was at a little event yesterday, um, and I bunched I bumped into a friend of yours, okay.

All right, okay. And he says, and he goes, You know, I listen to the show, I love the show. He goes, and he said the same. And he goes, Where do you work? And I said and I told him where I work and I said, You're familiar with that shop. And he goes, I am and he and we laughed about it. Okay. He was like You know, he goes, I can't believe that's where he's like, I had no idea. He goes, how do you how do you do?

like how are you so on top? And Ed's standing next to me. And Ed goes, Oh, he studied. And I was like, Oh yeah, sh I just laughed out loud. I said, I do. I said I said, Rich, I pay attention, you know, and I talk to you know, I do a little bit of prep. I said, you know, but it comes across it comes across well, you know. Um

And he said, you know, he goes, I really, you know, I enjoyed this. I think he said the show is smarter than it seems. He had a he said something really clever about it. And he said, He goes, it's not just about what you know, it's not it's not it's more than it seems is what he said. All right. And I know who you're I know who you're talking about, and that's the highest praise that man will ever give anybody, right?

But I I I'll I'll and this is a little sycophantic, but you're very bright. I mean, I I I you're as well read as anybody I've ever met. You write. as well as anybody. Uh I I, you know, the fact that you got into this stuff a little late and now you've mastered it, uh, does not surprise me at all. I, you know, so.

Anyway. It was the two year, you know. If I you you got me you got me from my life mission, which was shorting shit codes, okay? All right. So like I stopped with that nonsense and you know, finding the the calling in the two year, which is just such a rewarding daily, you know, it's just it's just a wonderful stable presence. Okay. That it's it's it's just been a real calm. Yeah, it's calming. Exactly. It's almost it's almost like a um

an Asian philosophy, right? It's like be like water. Right. Right? Water flows. When water goes into the cup, it becomes the cup. Yeah. Yeah, yeah. You talk about like the immersiveness. Like it is really like my it rules my life now. Sat like Saturday night. What are you doing?

I'm just reading them looking at the two year chart. I'm sending it to my other friend. He's like, What the fuck are you sending me? I was like, Well, I just want you to be up to date for the show tomorrow. I want you to know what the channel did this week. Exactly.

Well, um Maybe I should get going'cause I see some police cars pulling up of All right. Make sure you wave at the gate on the way out, you know? Yeah, with all the paparazzi. Well, by the way, I don't watch the show, but there's a TV show, The Crown. I think my parents watched it, yeah. Apparently Uh, from what I've heard, tonight's episode talks about the lady Diana debacle. Oh, oh, oh, oh. Let me go back to your neighbor. I have one more question, completely off topic. You're back in Arizona.

They still building the houses up in your are they done in your development? Are they still building in the development? Not really. Are they selling? Are they selling in the development? No, stuff slowed down here. Okay. Yeah. It slowed down. Okay. So they're not flying off. They're not, it's not it's not where do I sign and I'll take the furniture anymore out there, no? No.

It slowed down. I think the prices are down five to eight percent. Okay. But it's i there's no feeding frenzy. Okay. I think I think it's gonna be a long time before We see that again. Okay. If you're thinking of coming this way, I can find a nice laugh for you. Fucking pile of sand.

Uh given uh it's Thanksgiving, are we going to podcast next week? Well let's leave it up to the audience. Um if you guys want a Thanksgiving show, you e email me if you feel strongly about it. I I mean I'm around. I love talking to you. Uh what are you doing for Thanksgiving? Your girl's coming out?

We got the whole crew. Oh the gangs come out. All right, so then maybe on the weekend. Maybe on that's if they let them through the front gate. I'll talk to you soon, buddy. All right, buddy. I'll see you soon. Take care.