Is Short Selling Dead? With Jim Chanos
Capitalisn't15 Feb 2024

Is Short Selling Dead? With Jim Chanos

The Wall Street Journal wrote that “Wall Street's best-known bear is going into hibernation" after the legendary short seller Jim Chanos announced he would close his main hedge funds late last year, in part due to diminishing interest in stock picking. Short selling, which bets on drops in asset prices, wins when companies and governments fail and has gained a predatory reputation over the years. Just last week, the China Securities Regulatory Commission vowed "zero tolerance" against what they called "malicious short sellers," according to Reuters.

One of our listeners wrote to Bethany with this question: “What does it say about capitalism if Jim Chanos can’t find enough investors willing to profit from its frauds, fads, and failures, not to mention the competitive forces that are necessary for a functioning market? Is short selling dead?” To discuss this, Luigi and Bethany sat down with Chanos himself, who has been cast as the “Darth Vader of Wall Street,” the “Catastrophe Capitalist,” and the “LeBron James of short selling.” Together, they discuss the relationship between short sellers and our information environment, the fallout from the "meme stock" craze, the effects of the Federal Reserve’s interest rate policies, and how short selling can contribute to market efficiency and resilience. Do short sellers play a positive role by uncovering corporate fraud, mismanagement, and systemic risks? What safeguards are necessary to prevent short-selling abuse and ensure fair and transparent markets?

Avsnitt(218)

The Failure of Russian Capitalism With Bill Browder

The Failure of Russian Capitalism With Bill Browder

On this podcast we mostly talk about what isn’t working in American capitalism. But, on this episode, we're taking a break to look at how capitalism can go wrong in other countries, specifically...Russia. And we’re going to do that with a very special guest, Putin's so-called number one enemy, Bill Browder.

2 Jan 202037min

Silicon Valley’s Corporate Culture Problem With Mike Isaac

Silicon Valley’s Corporate Culture Problem With Mike Isaac

Does Silicon Valley have a capitalism problem or does capitalism have a Silicon Valley problem? On this episode, Kate and Luigi sit down with Mike Isaac, New York Times technology reporter and author of "Super Pumped: The Battle For Uber " to find out if these tech startups have a toxic corporate culture issue.

19 Dec 201935min

Optimizing Our Healthcare System

Optimizing Our Healthcare System

You don't need us to tell you there's something very wrong with the American healthcare system. The real question is: what can we actually do to fix it? Could Democratic candidates Elizabeth Warren and Bernie Sanders be right that Medicare for all would be better? Would a single-payer system fix all the frictions in the industry? On this episode, Kate and Luigi delve into the economics and capitalism of the healthcare debate.

5 Dec 201939min

Shareholder Vote Suppression With SEC Commissioner Rob Jackson

Shareholder Vote Suppression With SEC Commissioner Rob Jackson

A common theme on our podcast is whether shareholders have too much power. But if we were going to redistribute that power, to whom should it go? Two recently proposed rule changes at the SEC would transfer more power to CEOs. But do we really want to empower managers to operate with less checks and balances? This week, Kate and Luigi sit down with SEC Commissioner Rob Jackson to talk through these issues and debate the proposed SEC rules.

21 Nov 201939min

Is Elizabeth Warren Right About Private Equity?

Is Elizabeth Warren Right About Private Equity?

Presidential candidate Elizabeth Warren blames private equity for many of the issues in our economy. She plans to reign it in and regulate it with her new bill the "Stop Wall Street Looting Act". On this episode, Kate and Luigi explain how private equity really works, whether it’s bad or good for society, and they dissect Warren’s proposal to regulate these firms.

7 Nov 201937min

College Admission (In)Justice: Harvard and Beyond

College Admission (In)Justice: Harvard and Beyond

Getting into the right college is arguably more important than ever, which has put the justice or injustice of admissions processes in the spotlight. On this episode, Kate and Luigi give a fresh perspective on a recent admissions trial involving Harvard, explain its implications for college admissions in general, and ask whether the way elite universities choose their students is an example of capitalism working or failing.

24 Okt 201936min

What It Takes To Win The Nobel Prize In Economics

What It Takes To Win The Nobel Prize In Economics

On this episode, Kate and Luigi explain how to win the econ Nobel, why it's important, and they attempted to predict who the 2019 winner might be.

10 Okt 201935min

Economic Research: Nothing Precisely or Precisely Nothing?

Economic Research: Nothing Precisely or Precisely Nothing?

On this episode, you're going to hear how the sausage gets made in economic research as Kate and Luigi personally investigate whether private equity is to blame for the retail apocalypse.

26 Sep 201935min

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