Danny Moses | From “The Big Short” to the Big Long | Zer0es TV

TL;DR

Danny Moses discusses his background in finance, including his involvement in iconic Wall Street moments, and shares insights on the potential impact of cannabis investing.

Transcript

it just creates a another level of murkiness that is done again to protect the management and not the investor welcome to xeros tv we are very pleased to have a special guest in the studio today danny moses welcome to zeros tv nice to be here thanks for having me so danny you have been an essential part of some iconic wall street moments tell us yo... Read More

Key Insights

• 🥺 Leverage and derivatives can lead to market dislocations and financial crises.
• 💀 The orange county crisis highlighted the dangers of excessive leverage in bond investments.
• ❓ The mortgage market collapse showcased the unsustainability and flaws in the subprime mortgage industry.
• 💱 The cannabis industry is poised for growth, with potential regulatory changes and opportunities for revenue generation.
• 🚙 State and local governments may turn to cannabis and sports betting to address budget deficits.
• 😷 Majority public support for medical and recreational cannabis indicates a changing perception and growing market.
• ✳️ Understanding risk and fundamentals remains crucial in analyzing investment opportunities.

Questions & Answers

Q: Can you explain the orange county crisis and its impact on your understanding of financial crises?

The orange county crisis occurred when the use of leverage in the county's bond investments backfired, leading to a default. This experience taught me about the dangers of leverage and the importance of understanding risk in financial markets.

Q: How did your involvement in the mortgage market before the 2008 crisis shape your investment views?

Witnessing the rampant growth and unsustainability of the mortgage market made me skeptical of certain companies and their business models. I recognized the dependence on home price appreciation and the flaws in the rating agencies' assessments, which ultimately led to the market's collapse.

Q: What sparked your interest in cannabis investing?

After leaving the hedge fund industry, I explored different industries and found cannabis to be a promising macro trade. While there are challenges in the micro aspect of the industry, the changing legal landscape and the potential for revenue generation attracted me to invest in this sector.

Q: How do you see the future of cannabis industry in terms of regulation and market growth?

I believe that the cannabis industry will follow a similar trajectory as alcohol and become a consumer package goods (CPG) sector. We will see increased investments from CPG and alcohol companies as cannabis reshapes the market. The medical applications and revenue generation potential of cannabis make it an industry that will continue to grow.

Summary & Key Takeaways

• Danny Moses has been involved in various Wall Street moments, including the financial crisis, internet bubble, and subprime crisis.

• He emphasizes the importance of understanding the impact of leverage and derivatives in market dislocations.

• Moses believes that post-COVID, the financial challenges faced by cities and states, particularly concerning pensions, will be a significant issue.