Let's Play Wall Street Raider - Ep55

Cha-ching!

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Closed Caption:

hello everyone and welcome to episode 55
of let's play Wall Street trader I'm
breaking your host before we begin today
I need to share with you again the same
thing that I did last time for those who
are not watching these episodes in order
we have reached the point where we are
leaving the realm of reality and
entering the world of make believe the
kinds of numbers that we're gonna be
seeing today have no basis in reality
and some of the transactions and the
behavior of the simulation are not going
to mimic any kind of behavior that
exists in the real world we have
basically built our wealth all the way
up to twenty one quadrillion dollars
something that no one in the world
real world has ever done and according
to the publisher of the game
the average or the the most common high
score that he sees after a thirty
five-year game is two hundred and twenty
to two hundred and thirty trillion so we
are well beyond what has been tested for
the regular market we have basically
exceeded all of the expectations
especially given that it's only 20 31
March of 2031 we haven't even completed
16 years of game time yet
nineteen years to go twenty years to go
though you are well beyond what the
publisher ever expected anyone to be
able to do with this game and as a
result we are going to see today
issues that have never been addressed
never been witnessed even and I am
working with the publisher to try to fix
the problems that we're gonna see today
so now that I've gotten that out of the
way basically let me recap what we did
last week or last episode we have fifty
seven companies that barring companies
well if we include holding company waste
management is a holding company and we
also have the six insurance companies in
the bay have sold off all of these
companies that we had last last time out
the ones that we retained we had them
sell off their holdings of oil and gold
we had them by the index instead of the
profits that they made off of golden oil
showed up on their earnings reports and
caused their stock prices to rise when
their stock prices rose value of their
index futures rose and so they were the
cash that they were turning off their
futures was dispersed
which added to their net worth which
raised their stock price which raised
the index which generated more cash
which raised their stock price which
raised index and on and on and on and we
had this point are in a constant wealth
generation so the fact that we rose last
episode from 1.2 quadrillion always up
to 21 is a result of that cycle and that
cycle will continue until we sell off
these index futures for instance well
actually before I actually start
thinking anything and in bed scene the
clock there's a couple of things that I
want to do the first thing that I want
to do is I want to close out all of the
options that we have on SunTrust and
I'll explain why well I guess I better
go ahead and show you why they so it's
good to me I have options options at
Arkansas best these are call options
because he's the counterparty put
options for the bank when I sold him put
options basically what time it was I'm
gonna sell him the two percent of the
bank's stock at a certain price today
and if it goes up
that put option will become worthless
and I don't ever have to pay back the
money that I owe it but if it drops in
order by the put option back I have to
pay him everything that he gave me plus
more so the price of the bank is up so I
should be making money and he should be
going broke but instead we look at his
net worth is negative on cash yes but
his option is supposedly worth more
money now than what I saw it when I sold
it to him it was only worth 50 million
bucks and now it's up over what 20
trillion that's just not supposed to
happen that is a that is a mistake that
is a flaw in the logic of the game
ok so if I close out all of these
options
you should go broke in which case I
would not have to buy back any of the
call options that I sold on it right so
I'm gonna buy all the outstanding stock
of the bank so that all of these options
on the bank to get settled basically
closed out right now the options that I
have unsafe go these are accurate I am
losing money is stock prices going up
and up from $35 shared a 60 . 76 so I'm
losing a lot of money on him so I'm
gonna buy those back also going to cover
short positions because I'm losing money
at all of them so I'm gonna go ahead and
close these out I don't have enough
money to buy the outstanding stock the
other public stock of the bank so I have
to have the bank to spur some cash but I
do have enough money to buy these back
somewhere to go ahead and take care of
this first one here
next to make an extraordinary dividend
for the maximum out no I'm going to buy
all the outstanding stock of the bank
and going to buy it from
are other five companies as well
next I'm going to buy index futures
so that I can show you
what's happening with them from a new
set
their main index futures and it's
already gone up because the index is on
the rise and this growth is exponential
already gone
from 21 to 39 one trillion dollars in
just a few clicks
so now I need to buy these call options
back from Safeco
I'm going to do that
well I have left is all options on
Arkansas best and now that we've closed
out all options you notice that the 220
trillion dollars that that option was
worth has disappeared didn't get credit
for it when I close the Options out and
he shouldn't have that 20 trillion was
not real that's a problem with the logic
or in the display or both
he's going to go broke now and all this
money that it says I'm losing I'm not
gonna lose it he's going to go broke and
all these will become worthless and I'll
get to keep all the money I got from
these productions will I sold ok a lot
is happening in this game every second
has already just those few clicks itself
another 2,000 points all of our stocks
are growing exponentially so I'm going
to resign as CEO of the bank
turn on auto pilot that every time these
companies declare earnings it will split
their stock down to a more manageable
level otherwise it would go right off
the screen and we wouldn't know exactly
what the stock prices are
so I'm gonna save the game at this point
think we're gonna want to come back to
this specific point in time
other air that's gonna come up whenever
a company of ours is sued for antitrust
Ryland is the first one that's gonna
come up is the next antitrust that's
gonna make it to court is one against
Ryan O'Reilly has stock index futures
each of which are worth started out with
10,000 contracts each and then that was
split the index reached ninety thousand
so the split the index and that became
50,000 and then they split again so it
became one point five billion 1.25
trillion that's how many contracts he
has so when the index splits basically
they just multiply your number of
contracts by five so that the value
remains accurate so the value of these
now is 748 trillion dollars
one of them is 544 what we point 741
quadrillion dollars and this is just one
company and we have once again sixty
three companies with stock index futures
every time this goes up $1 were going up
billions and trillions over here each
company that we have futures for a
comeback
just remember he's got
37 quadrillion dollars I think 4141 3.7
trillion dollars in cash after he gets
sued there's gonna be a huge negative so
go ahead have irish sell it off
look at him again after his antitrust
suit makes it to court
training there's anything else I want to
do before it turned the ticker on
I'm gonna turn on the ticker ticker is
set to 66 and I'm going to fast forward
whatever I'm not talking but we're gonna
be looking at some stuff like for
instance the interest rate keep an eye
on that it's going to go all the way up
above 20% the rest of the commodities
will behave normally this stock index
basically is gonna double every couple
of minutes in the interest rate the more
cash there is in the market higher this
rates going to go basically gonna just
run the ticker I'm not gonna do anything
transaction wise from this point forward
till after its losses Berkshire Hathaway
will be up next we'll end up selling him
as well
net worth over here
index and a lot of pop ups are gonna
come up but lesser something I want to
talk about I'm just gonna enter right
through them we're going to be going at
four times regular speed slow it down on
youtube and watch all the individual
changes and the part of some but not
slowed down on YouTube and you'll be
able to see everything alright so
without further ado let's turn on the
ticker
earnings as got up when he gets to be in
a horrible hurt the next earnings report
that comes up will be for STI
as tu hi actually his earnings are going
to show that he's losing money not
losing money
but it says that he is
why this has a huge negative I couldn't
tell you the only cash she has i think
what I do is put that in something that
interests me maybe he may be is losing
money because he's paying interest on
all these CDs and earning as much from
having this cash sitting here as he is
paying out so let's put that Morgan is
helping out but it'll also illustrate
the point that I wanted to show you
watch this I'm gonna put all of his
money every set in the mortgages and now
look like I'm going to do is to bring up
his reporting in
got billions of dollars in cash again
ticker right now on the insurance
companies their income reports are
actually a little bit more in line with
the coming in Hartford is up
always up by the way this is their
regular income check out with their
total income is just huge 267
quadrillion now more sense is that
nineteen billion single quarter 27
trillion total
up trillion
here
sixteen trillion sixteen trillion yen
an extraordinary dividend it's the
autopilot doing that
up and let's look at these numbers I
mean it's just huge 588 quadrillion now
six trillion
cash so it's going into the banks they
will almost always got as much in just a
few seconds from the 4th to the eleventh
one week we already have another the
that's truly 866 394 quadrillion dollars
more just to
about the split ok look-see here at
splitting
another six trillion
so I'm more things and then I'm gonna
get out of the way and just let this run
but first of all I want to get in so I
don't want any party let's add to this
list
have a shortcut and later and don't
remember if I ever get my body back my
unsafe ok did so to show you my future's
now they've been split for their fifty
thousand of peace now it's what twelve
trillion a piece originally bought them
for 500 billion they've grown up to
twelve trillion each so this is gonna
keep going it gets ninety thousand it'll
split again will be two hundred and
fifty 1.25 million times 54 666
let me show you the bank real quick to
it comes to the net worth the stock
price catching up to the net worth
net worth is almost constantly double
near double
the stock price so even though all these
companies have all these all this cash
we're nowhere near our net worth is
nowhere near what he has in cash that's
because the stock price just never
catches up to the network ok so we're
gonna be lagging behind some point these
numbers are gonna get so big that the
program can handle it is going to take
us a while to get there I'm gonna go
ahead and run this just a show you how
high it will go along the way we're
gonna stop and look at a few things but
I'm gonna run this till it crashes
basically right and I'm gonna come come
back every once in a while when there's
something interesting like threats
that's when the bankruptcy it's all come
back or not the bankruptcy but the
antitrust and at some point the futures
will be worth so much money that it'll
crash and all the companies will be
forced to liquidate their futures and
they won't get
the full value of the futures
dead leaves will happen and all their
cash will be
turned negative basically
so we're gonna go and run the ticker I'm
going to fast forward and I'm gonna do
as I'm going to click through all these
notices just saw the ticker keeps
running put on some music and I'll be
back in just a minute
I just noticed a trial in stock prices
only a quarter so let's go look at them
right now see what's going on with him
see if I can see his antitrust go up and
he's already gone from whatever that was
never a three-point whatever what
julianne dollars he's already negative
he's basically exactly sure I trust
notice or whatever but this is what
happens right away as soon as somebody's
antitrust or Berkshire is the next one
he's got a cash still going up but as
soon as his antitrust hits here have
something
as they as these companies declare their
earnings the game the autopilot will
split them down to like the $50 level
some cases lower as the ticker runs they
just start going back up again let it
run for a little bit get an antitrust
that is
here's my notice that a BFS is gone
bankrupt so options that I had on him
are gone
no more options I him or any other
option to have my future's going to
split your just another five times this
figure
as the Arkansas best finally did go
bankrupt
because we sold him so since we didn't
known him we didn't get another as
guarding him and same thing will happen
with work here before the next phone
company's bankruptcy comes up which i
think is gonna be Vulcan Materials think
we're gonna already be at the point
where numbers are so big that the game
is gonna choke on the amount of cash
that its tracking if I won't sell Vokoun
off just on the off chance that it comes
up before the game crashes so I'm gonna
try to take her back on now and if that
does come up I will pause and we'll take
a look at him
numbers are so well is just going up and
up and up and up and up
Marco has just gone bankrupt you and I
both know that stock index futures are
any money that this should not happen is
cash you just get bigger and bigger and
bigger but we reached the point where
the numbers just can't keep up the gain
program the computer just can't handle
numbers as big as what we're looking at
now so you notice aperture when broken
he's awful this now and if I go to
so the bank start may have cash issues
as well I go two largest market cap
there are even enough spaces here to
show you the total value of these
companies because this is supposed to be
from largest to smallest as you can tell
the numbers reset to Tokyo just just too
big just TVA the game can handle it look
at the credit rating of the EU's gonna
be worth this much money have no debt
and equity credit rating materials is
cash is now showing negative because it
can't show or can't calculate how much
money he has anymore he's just too big a
number so this is what's happening just
got 61 billion dollars in our network
this will continue to go up because it
takes take some time for these
bankruptcies are being forced to
liquidate their contracts because the
numbers are too big and once that
happens they all start declaring
bankruptcy because their cash balances
broke gonna start going broke now the
bank start losing the cash but is stock
price hasn't caught up with his net
worth yet just went broke
63 quintillion
broke so I run this to this point three
times now and not counting this time I
see what was happening and basically
6068 what was the highest regard as
there is a element of randomness of
chance relations of all this stuff as
far as the stock prices closed and some
of the other factor is the interest rate
thanks price is probably doing better
now because the interest rate is down it
was all the way I had a first time that
I ran this it didn't fall below 15 16
and a half point so the banks price was
lower 55 billion another time it went
down at this point what happens when and
if I were to keep running the ticker is
these are companies including the bank
will go broke and the only money that we
will have left is what I have in these
futures like we actually reached the
point where crashed
so I'm going to write it down
so we have a couple of things that we
can do we can go ahead and sell off all
the index futures so that we don't get
to the point where the game is crashing
and resume our series we can go ahead
and let their net worth
run all the way up to 16 until you and
then sell off the bank transfer all of
our cash to a new bank that one st I
goes broke we don't lose it because it's
uninsured and then resumed our game or
we can with this particular series to
bed work with the developer to get these
issues resolved in version 7.73 and then
start a new series those are basically
are three options
so what I would like for you to do is
leave a comment below
after you've seen this and tell me what
you think we ought to do think my
intention is to go ahead and start a new
series anyway but if you would like to
see this game run all the way out to its
thirty five-year conclusion enough
people are interested
far as technique moving well I think I
covered them all I never thought that I
would like the options I never thought
that I would get have GV GV baseball is
a member of the WSR United forum and I
have to have him to thank for getting me
started in the options are highly
profitable highly effective investment
tool I never really understood without
prior to speaking with him about them
stock index was new to me where to this
version of the game I was playing
version 6.5 one was introduced in
version six point six that's something
that I haven't really used before
starting this series and very it's
actually easier to make money on the
index that it is the rest of the clubs
because it's easier to predict where
it's going to go up for what its gonna
go bad especially if you own a major
portion of the market as we have the
entire second half of this series
which i think is about what we started
investing in the stock index anyway your
comments and helping me decide where to
go at this point I'm going to take two
weeks off and start doing some shorter
retargeted videos on different concepts
in the game
explore stock selection when you have
very little cash so how do you how do
you select which stocks to invest in
cover passive investment of investing in
bonds commodities how to use stock
options to your best advantage
videos ten-fifteen minutes each that
basically cover all the finer points of
individual strategies and perhaps a
couple of longer ones were your
combining several of those features
together for an overall strategy so
thank you for joining me for the series
it's been a lot of fun I didn't do not
expect it to come to this point this
early
matter of fact I never expected this
particular perpetual wealth generation
tool to happen I think probably the
solution one of the reasons why is being
caused number one is because on the put
options and call options when you're
selling them especially when you're
selling large blocks of trillions of
dollars if there's no company in the
game that can reasonably afford to be
the counterparty on those trades and it
should not be allowed those trade should
basically when you try to initiate then
come back and say
and sorry but this large this is too
large I cannot find a car counterparts
according to developer that's what it's
supposed to do but somehow because of
the size of the trade the number is
being converted to a negative which is
less than the amount of money that those
companies have so it's allowing the
trade to take lights just like when our
companies in the later stages of this
simulation positive and negative think
the same thing is happening during that
credit check so that's the first thing
the second thing is on these trades that
have kept our partners like let's say me
and centrist we enter into a transaction
and SunTrust are losing money on it and
he sells off the side of the trade that
is not at the same time
canceling my side of the trade so
basically like how to party becomes the
public now in this simulation the public
can't go bankrupt so when the index
futures certainly make money and the
counterparty never goes bankrupt there
is a way we've shown that there is a way
to make that a perpetual profit
generator and that can happen when the
counterparty cancels his side nice the
other side should also be canceled if
the counterparty goes bankrupt that
should be the end of the trade I cannot
collect more money than the counterparty
has recently come up with so even in the
real world when a company goes bankrupt
yeah that's it creditors have to fight
over what little is left and they get
pennies on the dollar and that's not
happening here we're being allowed to
make money in perpetuity for the
duration of the of the futures contract
which we set them all the way out to
five years so it's five years went by
and we were making money on it and we
got to the expiration date then it would
be settled by the numbers are so big
before we get there I mean we only
played when I say it was like eight
months nine months of game time if that
was like the end of October right when
we got to 61 billion six months again
time maybe seven it's just not going to
get to the end before the game can
handle it so that's gotta that's got to
be put in place to think that's possible
is to possibly get rid of counterparties
but again you have a situation where
your trading partner can go bankrupt so
what do you do when you lose out of
control
to open to manipulation at that point I
think the kind of parties had to stay in
when the counterparty goes bankrupt
ourselves off the futures or the option
either side should be cancelled as well
like I said these numbers have never
been addressed these never been tested
he's never seen anyone get up here at
this level before so it's all a new
experience and it'll all be addressed
I'm sure so as soon as something happens
of course I'll put some comments on this
particular episode I'll be looking for
yours as well
please let me know what you'd like to
see in the next one or if you have any
many episodes that you would like to see
produced one that was requested on the
forum was starting strategies to
generate maximum in the early stages of
the game means put any requests in the
comments below and I'll be happy to take
them up for consideration right so
thanks for joining me I hope you enjoyed
it I had a lot of fun and I hope you did
too if you did please like and share and
until next time this is Ray come saying
have a good one