But MY NEXT GUEST SAYS THIS FEELS LIKE THE 2018 LEVERAGING IN THE HOUSING SECTOR., EXCEPT WHO WILL SWOOP IN NOW TO SAVE THE DAY MIKE ITS GOOD TO SEE YOU AGAIN. FEELS LIKE A RERUN. So, WHERE DO WE GO FROM HERE WERE EXPERIENCING BASICALLY A DUAL BASED LEVERAGING EVENT. BOTH MACRO DELEVERAGING AND TIGHT MONETARY POLICY AND A MICRO DELEVERAGING EVENT WITHIN CRYPTO, WHICH VERY MUCH REPRESENTS WHAT HAPPENS IN THE HOUSING BUBBLE, WHERE CREDIT STANDARDS DETERIORATED SIGNIFICANTLY AND IT WAS REALLY A Result OF THIS STRIVE FOR YIELD., SO YOU HAD, AS IN THE MORTGAGE CRISIS, THEY WENT DOWN TO LOWER QUALITY BORROWERS AND WE HAD A SIMILAR SITUATION WHERE YOU HAD LARGE SCALE PLATFORMS, ETC. WHERE THEY NEEDED TO SUSTAIN USER GROWTH VALUATION LEVELS IN THE MARKET. They WERE PROVIDING IN THEIR CAPITOL STAGING ROUND AND TO DO THAT TO THEN GENERATE NET INTEREST MARGINS, WHICH IS WHAT THEYRE ABLE TO GENERATE ON THEIR DEPOSITS. They HAD TO GO FURTHER AND FURTHER OUT THE RISK CURVE TO SEE THE THINGS THAT WERE NOT MEANT. For THIS TIME OF YIELD ENVIRONMENT., I THINK ANALOGIZES WELL TO WHAT HAPPENS IN THE HOUSING CRISIS.. We KNOW HOW THAT STORY ENDED WITH TAXPAYER FUNDED BAILOUTS.. Some FINANCIAL FIRMS, SWOOPING IN TO BUY OTHERS., WERE STARTING TO SEE A RERUN NOW.. Do YOU THINK IT ASSUMES BECAUSE OF THE DEEP POCKETS THAT J.P. MORGAN, WHAT HAPPENS TO SESSIOUS WHAT HAPPENS TO ALL THE REST OF IT AND DOESNT SEEM LIKE THERES A BAILOUT COMING SO WERE RISK MANAGERS WE UNDERSTAND AND ACKNOWLEDGE THAT RISK.

FROM A PRIVATE INVESTMENT STANDPOINT, WE Manage AROUND THIS KIND OF STUFF, BUT FOR PLATFORMS THAT GROW IT ALL COSTS THATS, WHERE YOU EXPERIENCE A LOT OF THE ISSUES AND THE OFF SHORE, TRADITIONAL LENDING IS PROBABLY THE MOST WORRISOME AND BEING UNWOUND AS WE SPEAK. This IS A DISTRESSED SCENARIO. WHEN YOU HAVE CASH IN THESE ENVIRONMENTS, THERES ATRALKTIVE OPPORTUNITIES – AND YOU HAVE OBVIOUSLY YOU THERES A LOT OF NEWS AROUND WHO THEY MAY OR MAY NOT BAILOUT.. When YOU GO BENEATH SURFACE IT MAY LOOK GOOD FOR DEPOSIT HOLDERS, BUT NOT EQUIATY. In THE COMPANY., WHAT YOURE SEEING IS A BROAD BASED ASSESSMENT OF THE MARKETS. TRYING TO ASSESS UNDERLYING RISK IN THE MARKET.. I WAS GOING TO SAY: HOW DO YOU TAKE ADVANTAGE OF A SITUATION, SO YOU CAN BUY SOMETHING. Now. City GROUP WAS TRADING AT ROCK BOTTOM LEVELS, BUT ITS NOT A WHOLE LOT ABOVE THOSE LEVELS, 15 YEARS LATER TODAY.. So WHERE DOES BLOCK TOWER SEE THE OPPORTUNITY ITS ACROSS THE BOARD? Theres INTERESTING PARTS OF THE MARKET HAPPENING WHERE YOURE SEEING SPREADS BLOW OUT THE AD VENT OF NEW INVESTMENT TECHNOLOGIES, WHERE YOU CAN TAKE TRADITIONAL CREDIT BRINGING ON CHAIN – AND THESE NEED TO BE UNWRITTEN AT A VERY CONSERVATIVE LEVEL.. So THE WORLD WAS MOVING. Toquickly. YIELDS WERE GETTING DONE TOO QUICKLY AND THAT CULMINATES IN SOMETHING LIKE WERE SEEING TODAY.. I THINK IT BRINGS IT BACK TO BEING ABLE TO HAVE THE TIME TO UNDERWRITE AN INVESTMENT AND STRUCTURE IT WELL.

, AND THIS IS CRYPTO NATIVE AND ASSET MANAGERS. Ive SPOKEN WITH. Most OF THEIR SPECIAL SITUATIONS, HEADS THEYRE ALL TRYING TO FIGURE OUT EXACTLY WHERE THEY CAN DEPLOY THEIR BALANCE SHEET, TAKE THEIR TRADITIONAL STRUCTURING AND PROVIDE THE SPACE..

https://www.youtube.com/watch?v=aiBV2xbrUYU