Clubhouse

are you celebrating anything in particular with your short shirts um no i'm just trying to look sexy in these in these tight pants with the you know fabulous red in the goals uh is the good times room has almost 6 000 people in it right now all right just give it a minute because we promised we'd start at 10 and i think a few more people are going to try and trickle in and then you're going to get you'll get going for what should be probably historic uh first ever time for you and somebody amazing okay by the way um can you let him vlad from robin hood wow [Music] all everyone uh thank you for joining us for what is really a historic uh episode um i will come to our very very uh special guest in a second uh but just to quickly introduce the rest of the

nuke uh we have jack um this is really fun uh you know we've been waiting all day this is the longest way to 10 p.

m because we just couldn't wait to get this going um i hope this is as much fun by the end of it for you as it is for us first question from you is when are we going to get to mars [Music] roughly the same quadrant of the solar system and where we can do age planetary transfer and uh so we have one about six months ago about a year and a half there'll be another one so figure you know i don't know uh five and a half years five and a half years so what does it take from here to that point like what are the milestones do you think that's true you know five years out we are landing on mars well we're going to make a social play like aircraft where the cost of an air flight is um the component of that is fuel and um you can't just be throwing rockets away

every time and then you have orbital refilling so where you can extend the ship up towards uh then send another strip of dark wood transport propellant so that you can load up um to be almost cool with propellant and then go to mars and uh if if you've got a large fully monthly reusable rocket with over refilling that uses um high efficiency low-cost propellants then you can go to mars and then one one last thing is on mars here you need a local uh propellant production um anything here throughout the atmosphere uh combine it with the water ice h2o to create ch4 methane and oxygen and if you have those elements i would like to become multi-planter and we have a self-sustaining study on mars which i think is one of the most important things we could possibly

do for ensuring the long-term existence of consciousness yeah i think yeah that makes sense sorry i'll go for it yeah you've spoken about this often which is you know expanding your scope of consciousness and how it is tied to multi-family life could you explain what that means for you and why that matters to you uh sure well is it all meaningless i got quite depressed actually people out about it and and then the thing that kind of broke me out of it was reading out of this hitchhiker's guide to the galaxy um where he essentially pointed out that the universe is the answer and really the hard part is figuring out what questions to ask about the answer that is the universe um determining from the fact that the answer is the easy part of the questions

about the hard part so in order for us to gain a um a better understanding what questions to ask or to understand what it's all about we have to increase the scope and scale of consciousness so that we're better able to figure out how much questions at the same time um for reasons external or internal and and that was that all civilizations go through um technology complexity um because of globalization so i think for the first time the four and a half billion year history of earth has been possible to extend life beyond earth um and make life possibly planetary and this window of opportunity may be over for a long time i hope it is or it might be open for a short time um and i think it would be wise for us to assume that it's open for a short time um

it's not a pessimist but i you know you have to say like some chance of telling you for a short time and we should take advantage of this brief window opening where we can transfer life transport life to make life multi-planetary and and humanity is essentially the agents of life in this process and i think we almost have an obligation to uh ensure that the creatures of earth continue uh even if there is a collaboration on earth which as i said could be man-made or it could be uh like natural calamity as if you look at the fossil yeah i think yeah i think you know all of it makes sense and i think we've heard you've talked about this before i think one other question i have is you know when you get there you know we have to set up the whole society we

have to set up civilization there um how will the whole thing work in your mind like you know everything from what does it mean to have internet connection in mars um all the way to like garments and and i would not presume to prescribe what should happen there i think the important part is just that we get people there and we get the equipment necessary to establish a self-sustaining civilization um at least one self-sustaining city and i think the key threshold of when we would pass the great culture of this this particular great filter is um is sufficiently self-sustaining such that if the ship stop coming from earth for any reason it could be something massive or it's not something i mean civilization on earth content with a bang or a weapon and but

either way if the ship stopped coming from mars does mars die out or not um and moscone has been missing one little ingredients threshold where is self-sustaining um and are we able to do that before some calamity or or a gradual decline civilization occurs that prevents the strips from going there that's the that's that's the key threshold let yourself dream out over the next few decades like what would you what would you consider success like let's say they get through the first you know five years even the first 10 years like what do you think is possible to build on mars 10 years in 20 years then 30 years then after first um [Music] uh no it will be dangerous uh hard work um it's gonna be you're out there on the frontier uh you know a great adventure

um but it will not be a luxurious thing that is for sure quite going uh creating the necessities um you know we needed an iron ore refinery all of the fundamentals of industry in order to make sure that mars is a subtle sustaining planet um over time like this would take a while but uh you could terraform the planet and make it earth life um most people are warming it up so yeah so you know as you talk about this i mean honestly what comes to mind is sort of the idea that a martial civilization you know although obviously imported to earth it will quickly evolve to be quite a bit tougher um by necessity and just the missile image just leaving my mind as the spartans uh in ancient greece um do you think that do you think do you think the sort of vector

of civilization will unfold differently is the consequence of difficulties getting going different civilizations for it yeah yeah absolutely the fact that it's you can only go to mars every two years and that is a six months six months journey although i think we can over time get that potentially as low as one month you can't go to mars when uh earth is on the on the other side of the sun from mars like the you know times we're gonna block your heart especially no matter what you do so that uh a group of people uh arriving roughly every two years um to ensure the long-term continuance of consciousness as we know it um because as far as we can tell we're the only um delicate seen nothing to indicate uh that thursday any alien association whatsoever i

would i i'd be the first jump with that in a second but i've seen there's such to ask you evidence because in the last year there's been multiple reported ufo sightings there was the mysterious object that flew past our solar system um that could not be explained by other means um and where the probable explanation by other means is much more likely than alien technology so people say they're signing the resolution of the picture needs to be at least like 7 11 atm good okay levels um um what would your response be if they start coming to you when they turn 18 or you know 22 and they say you know dad you know you know you planted us to mars and there's probably foreign um controls the universe um well i mean i mean from uh the spice controls universe and

if memes are spiced those means i mean there's a little bit of truth to it in that like like how do you you know what is how do things become interesting to people and it means like actually kind of a complex form of communication that's like a picture maybe says ten fell swords um you know it's a complex picture with a bunch of meaning in it um and it is you know aspirationally funny uh so you know i affected people so yeah um how did you get so good at them i mean um i remember following you many years ago going from uh i guess uh probably um i mean you know if you go back to my early very early tweets technically i was on twitter i think in the very early days when they were only like made ten thousand less than ten thousand users uh but then like

people were just like tweeting like what kind of latte they had at the university street uh starbucks and i was like i don't even know this so then i deleted my twitter account um and you're like following or creating right now what are the ones that are interesting to you right now um i think some of them and then some of them are sent to me i have some pretty kick-ass game dealers yeah are there reviews on mars wait wait you're gonna have a good team dealer there will be my friends mike is a good game dealer and uh claire as well and uh jaco and a few quite a few others actually i personally am the likely responsible very interesting news and why people should be working there for folks who don't know about it i thought it was really cool like you know

just the possibility of it which is really fantastic tell us more about it you know there are a lot of engineers listening on this um this clubhouse uh you know what is neural link why should we care what is possible with it sure so um the the long-term okay so new link steps from a concern i had uh where i was trying to figure out even in a benign ai scenario how do we at least go along for the ride so um i mean if it has been following yeah closely it's supposed to be improving dramatically um you know if you feel like look let's say gp1 plus gmt versus gp3 and just how radically that's improved um and just like you know deep minds and i mean i think they've run out of games to win at basically um important thing is like tesla actually has i think one

of the the strongest ai teams in the world but his ait focused on real world usability um so just really building uh vision perception and control with ai but even in a benign scenario for ai where let's say like the fbi is like just really wants to be super nice to us and make us happy how do we stay relevant and have meeting and at least go along for the ride that's been a good scenario in terms of avoiding the bad scenario to the degree we can couple uh collective human will to the outcome of artificial intelligence and what's developed that way i think that'll probably be a better scenario for unable to effectively couple collective human oil to that outcome so um so the final the death is getting kind of desperate but you already have a tertiary

digital layer you've got your sort of limiting system which is your primitive drives and uh desires and responses uh and then you've got your cortex which is like long-term planning and thinking um those are two biological layers and then there's a tertiary layer third layer which is digital and you already have that in the form of your phones and computers and all your applications um you're far more powerful than the human would be without those uh cognitive enhancements but the bandwidth between your cortex and your additional pressure layer is very slow and in fact with the adventure phones um it got even slower so if you're if you're thumbing what's the rate so so so we need to improve the bandwidth um and with the direct neural interface we can

improve the bandwidth between your cortex and your digital territory layer by many orders of magnitude at least a thousand or maybe 10 000 or more we can also um a lot more time thinking about interesting things as opposed to taking complex thought structures compressing them down into words which is which also gain a very low cut rate um and then having someone else receive those words decompress them and then and then send words back to you um so a huge one about brain power and compression decompression um and we could be constantly on uh different concepts and so if you had a neural link typically your length you could do uh conceptual telepathy uh where you have a complex series a complex series of concepts and you just transfer them directly uncompressed

to the other the first drastically improve the quality of communication and the speed of it so um there are other sort of pretty wild things that can be done like you could probably save state in the here and you wouldn't be exactly the same so you you know a little less than transfer but you can also say it's also arguably true that when you wake up in the morning you're not exactly the same as yesterday um or the u of a month ago is not the same as the year of today cells have died um memory cell memories have dated so much strength and therapy memories so anyway the point is like you wouldn't be uh you could it could be something analogous to a video game like a game situation where you are able to resume upload your last state yeah kinda like ultra

carbon um maybe there's a few memories but i'll but mostly be here so now that's the launch code stuff in the short term the idea would really just be to address uh brain injuries or spinal injuries and um you know make up for whatever lost capacity somebody has with uh with an implanted shoe so the first thing that we're going after is a wireless compartment that would to control a computer or mouse or their phone or really any device uh just use just by thinking um and this is obviously going to be massive enabler you way way easier for them um there have been sort of primitive versions of this device one time with like wires thinking out of your head but it doesn't work all the time and you can't take it home with you so just having basically they

think i like it apple watches phones computers various kinds then actually they would be a great fit for um so yeah i mean we'll probably be releasing some some new videos showing progress maybe uh in a month or so and uh because we've already got like a a monkey with with a wireless implant in their skull and the tiny wires uh who can play video games uh using his mind and you can't even see where the neural implant was put into that so the usda came through and inspected our facilities our monkey facilities she said it was like the nicest sponsoring facilities she's ever seen in her entire career the early applications will really just be for you know people who've had a serious brain injury um like where it's like the value of the implant is just would

be enormous um [Music] initial surgeries with full disclosure of like risks and everything so we've tested implantation removal and re-implantation say and of course great um sorry um i mentioned kids earlier as it turns out i have a very uh bright and inquisitive pleasure um who is crawling all over everything and trying to figure everything out and learning as much as he can as fast as he can like what you know with everything that we know now and kind of all the modern tools we have like what's the best way to think about educating a five-year-old in today's world that's right the best way to ex yeah educate a five-year-old and then think about kind of his identification over the course of the next you know five or ten years like what what kind of

program ideally you think a kid should be on well my observations my kids were mostly educated by youth group and writers um and then you know and i guess classmates and i guess their lessons as well but um judging by the amount of time they spent online it just seemed like most of their education is actually coming from online um i mean i think generally with education you want to make it as interesting as possible if we're going to explain why we're teaching you this and why it is relevant um i mean we were able to um to forget things that are irrelevant or have low low relevance probability it makes sense like otherwise people remember all sorts of nonsense things that are very important to our future so unless unless relevance is established clearly

um then people will have a hard time remembering where it finds nature because it appears to be irrelevant um it might be relevant but if the law explains them they won't know um and then there's if you want to have some sort of engagement problem solving some sort of engaging narrative for problem solving like [Music] in um this is much better than having say a course on wrenches or a course on screwdrivers just like start with a problem and say what titles i need to solve this problem that establishes real relevance and gives a compelling hour of thread it seems like you could kind of if you had sort of elaborate enough projects you know you could you could rule a huge number of topics to do to ultimately kind of combine it with you know some really

actually you know interesting of great um if it's the casting engine you know what's that how do you get to a higher rpm or a you know better compression ratio um you know i'm using like uh um become what advice you have for parents and the next one is here you are with you know so many companies that i can't even stop my head why does the world have and this doesn't mean to sound you know psychopathic but why does the world have more um you there are pretty long essentials in my life that have been very painful and difficult and i'm not sure i would i'm sure people would want to do that you know um um what encouraging words do you have for entrepreneurs who want to do a startup and my response is if you need encouraging words don't do a startup and eventually

um in um just a quick recent flash recap this is uh uh the one only elon musk was first time on clubhouse and this is a show that we do every single day i know a lot of you are trying to get the route to overflow room what do you think of cryptocurrency what do you think of bitcoin what do you think of other uh yeah i gotta watch what i say here because some of these things can really move the market um many friends of mine have tried he had a bitcoin cake a cake that was like a bitcoin symbol on it and he fed me a slice of bitcoin cake in 2013.

so i mean clearly i should have at least fight for bitcoins eight years ago conventional uh finance people you know so um and the most entertaining outcome is often most likely and arguably the most entertaining outcome and the most ironic outcome would be that dogecoin becomes the currency of earth in the future oh my god um it was insane um sitting outside our house right now um especially when it comes to all things technology and self-driving a lot of people are very interested okay so should you ask me about the future of batteries itself um the next few years um well yeah i mean i think that i mean the goal with tesla is is to accelerate the effects of sustainable energy um so in order to do that we've got to make a lot of cars we've got to make

them uh increasingly affordable and our rough target is we want people to um eventually make 20 million cars a year the reason for that is the two billion active cars and trucks in the road and you're not really moving the needle unless you're changing one percent of the existing clean and of course production as fast as possible as much as possible from suppliers and then but even though it's not enough so we're actually going to be building uh their rate as well um so panasonic um algae and jhdl and then you know to increase the accelerate stable energy further we're making our own cells um and um i'm pretty pretty excited about that and then anyways i think you expect possibly an acceleration of compounding annual growth uh at least aspirationally

that's our goal and and then that combine that with autonomy and it's very powerful story because once you have autonomy or self-driving cars you massively increase the utility of any different car um you know a typical car is driven about 12 miles sr 12 12 hours a week depending on the situation your roughly 12 hours a week and there's 168 hours in a week a week so most likely a third of the hours a week or something like that um so maybe they do 60 hours a week of usage instead of 12.

so basically per increase in asset utilization there um and far less need for parking less parking garages that kind of thing so um and this in itself is good for the environment um but the net of like having a lot of cars times uh motivational time self-driving i think is at the heart of why um a lot of investors think tesla is with what it is um is directly to live space and live saved and injuries about a million people die every year in car accidents and about 10 million per year have serious injuries uh so that's the pursuit of the better um and a lot of flights will be saved in lines and fuels lives made better if it becomes happens here on self driving you know you've made life a while back when you basically you know to put it mildly criticized

[Music] um is so um um first of all i know i like farming i guess you know because you know for the spacex dragon at joshua space station we for driving on real world roads um you you have to solve uh vision you have some vision basically understanding audit objects with passive optical um um passive optical photons and and then making sense of those objects um so like division perception what does this object mean what are they going to do what is the likely path of travel um no question about it um like it's just because people don't have eyes like they can't basically have effectively a human one test process has it's like having one camera on a slow gimbal you know there's all sorts of things that go wrong um in the occlusion penetrating wavelengths

uh just like radar you know roughly four millimeter radar or something like that um would be better if you can really delve into the arena of actual photon generation work um as an engineer so walk us through it's monday morning you wake up what is the day a typical work day in the uh um is not actually fun or interesting it's like chores so i've tried really hard not to do my chores but then i don't do my chores it's going to help so oh man you have to hear it for us [Music] and you do um and it's kind of there's something just really relieving just hearing you say that yeah um um and and then post meetings are much better uh even zoom meetings or whatever you know there's a little better than email anything's got an email i'll have a um of meetings

uh i'll write an email write checks um especially if it's like an email to the group like hey we need to i think we need to change direction do the following things um and you know if you think otherwise we're going to do these things and connect our act together in this area or that area um and then yeah a bunch of meetings most of my meetings are engineering and design but of course you have to deal with switching um it's really hard to context switch between space next and tell them all the things that are going on next tesla and then and then euro-link boring company which was fortunately pretty low low bandwidth but they don't take a high level cpu because they're smaller and there's where's of open diamond calendar and i think a lot of you know

well-known founders have large blocks because you have multiple companies you're running you're also much more engineered and traditional what is your challenge are like insane torrents deterrence for information um i mean sometimes if you weren't like what i do for a day it's insane uh i don't recommend it i i mean yeah i was thinking like then how long can i keep this up because i don't know my brain they're not like um nice to have goodies they're like this meeting is essential like okay um it's pretty intense um i think like maybe i should like at some point like [Music] that might be helpful i think so a book a documentary i think you know i mean i remember once hearing about how do you still sleep on the floor of your factory to do to really work

super hard i i i gotta be right there with them um and they gotta they gotta see it you know seeing us believing and so a bunch of sleeping in the middle of the factory floor and you know sort of go to sleep before in the morning like you know waking up like four hours later and like they literally see me they won't pass me um um [ __ ] robots are like 15 feet away yeah and they're they're pounding metal and it's like you're splitting and your factory's like literature your your room is like literally in the middle of them at least i saw your you're like in the conversation that's where you're because people could not see me in the cops room so i slept on the floor outside the conference room it um or another effort what would you start um and then nobody

did anything so then actually initially as a joke and created the boring company um improve people's quality of life by making it easy to travel from one place to another in a city and then that can be further expanded to long-distance travel uh where if you just throw a vacuum on the tunnel then you can go extremely fast and invest in a plane or a high speed rail um so i really still recommend uh someone else said please start a styling company that'll be great um then there's rna or mrna basically synthetic viruses uh which is uh we're seeing particular effect with bio intake and um but i think people don't quite appreciate that that what's actually going on is the digitization of medicine so it's where you can just literally you know create an art

or dna sequence like a computer program and then uh encapsulate that in this is absolutely the future of medicine um tells actually just making affiliate fast uh rna sort of micro fab or something where for currently for cure back to growth to make it for other companies as well um i'm not sure i understand this why is tesla i'd say it's super random so for and position they said like we're willing to be acquired but there's like just a couple of projects that we think even though they're not related to automotive we really like to continue um and then another one was this biotech thing for it's basically three parts to it there's a dna multiplier an rna multiplier and studying which puts them the lipid shell on the rna sequence um like version three

of it now and then they keep going so if you keep it under resources and then it turned out um across the world so what would you do differently there um well i i don't have good insight into the situation really is important for anyone with use um cbs and walgreens which would give out the flu vaccine every year and say okay just just show up here and um vaccines which are quite temperature sensitive they can only be um sort of defrosted from from the deep deep freeze briefly and then they must be used or they they lose their effectiveness um this is the rna because the rna sequences they use are not stable those sequences want to reverse uh to something else um because they are not stable they must be frozen at a very low temperature uh or they will

simply want to revert to a lower energy state um rna sequence that's my understanding um so just like instead of worrying about like this as quickly as possible and for sure we should not worry about the second dose yet just give everyone the first dose i suspect that the the community grounded by the first dose is very significant um you know that is like three or four weeks later so uh we'll have to we're going to plant time and don't worry about like actually giving the dancing to someone who maybe just so that will happen you it will be thrown away uh later this year more than we could possibly ever need or want um just got approved which is a small conventional vaccine but it's a single shot at room temperature um and then there are more vaccines

that are going to get approved hopefully soon and um and um combined with that we we are i think starting to approach some degree of heart immunity um with you know people who contract the virus and um and and recovered so which is actually better than getting vaccine um but antibody great reaction is um better than that so um yeah um i think you know optimistic message that there will so you know speaking of vaccines california has you know it's been sort of bouncing between kind of 40th and 45th and 50th country you know by space in terms of the speed of the rollout and it sort of you know it re-raises those questions by coming up more and more which is you know you and i and a lot of people you know you're listening it's like you know builds our companies

you know primarily in california up until now um what's your view in the future in california uh from here well i should say i love california i've been i've lived half my life more than half my life in california just you know um like i am you know californian you know like so much of my i'm gonna build my companies here uh on energy storage technology for electric vehicles way back in like 92 i think it was 92-93 uh there's a little company called clinical research in sport um working on through advanced capacity um vehicles which may or may not be successful but would it be useful or not answered and like you know i mean you're basically the only internet company um and then uh because i'm like okay well i also write something for myself and i actually

wrote the first maps and directions on the internet i'm not sure how many people are aware of that first best directions yellow pages and white pages i wrote it personally it was just me on my computer and when we started this company we only had one computer the website only worked during the day because i was coding at night and from the server and during the day quite an adventure that's um sure um yeah so i i just want to let you know that the next time you show up at one of my companies that hang out with me you're gonna get an internship well thanks man but two computers um what are you what are you watching on tv what are you reading right now well um i just finished watching the last kingdom which i think is a great piece of you know mostly historical

uh drama um um sort of um uh things about like having a shortage order or something there's something like if it doesn't make any scientific sense at first so i was like come on so then i stopped watching it but i it sounds like you know asheville's actually like interplanetary travel would be like you know what's the sort of face routine and by the way the politics that flow right so it sort of sets up a three-way battle between you know there's the earth and mars and then the asteroid belt um when [Music] did you see the ravens banquet the most recent one yeah it's great uh have you seen the new christopher nolan yes wow okay and did you understand it um well i think i think he said just don't like go deep into it just enjoy it for the movie and four

hours like later i emerged from better things like i still don't like entirely get it so i should have just you know just skim through it and just watch it for the fun of it yeah yeah exactly um you know i think you know i don't you don't take up too much every time this has been amazing um you've pretty much broken about like over a dozen maybe more rooms and for all your um here and on twitter you've been asking for people to join tesla do you any final thoughts for everybody who's listening to you right now well do you want to hear the real story um from vlad from robin hood about what happened this week with case out uh uh okay you need to like let him somehow click on a button so you can talk uh since you mentioned that right at the beginning is

in fact a book of philosophy disguised as a silly humor book um and if you read it from the standpoint of wow this is an interesting book of philosophy this is quite insightful um here's the point of um the answer is easy once you probably can probably formulate the question um and uh yeah i mean i like the fact that the ship is powered by infinite improbability it's called the heart of gold um yeah yeah um a sort of clerical error they basically decide that they need to have an ssl highway and an earth's in the way and so they about this i think was posted on the board what do you mean um hey guys thanks for uh thanks for inviting me up it's good to hang with all of you all right so what really happened give us the inside scoop all right well i was actually

hoping that uh you would invite me up for the fermi paradox part because um this has been a very surreal weekend and week for me um one of the really great things is all the people coming to coming out of the woodwork to offer support for the company uh offer you know advice so um i got introduced today um and actually i should say i just randomly downloaded clubhouse a couple days ago just to see what it was all about so this is my first time literally using the app but um yeah i i got introduced to uh your friend antonio elon who had some good advice for me and then introduced me to you you had some great advice and then i figured you know i heard about this clubhouse and uh this has got to be part of the simulation so i just uh thought why not so here

i am so i'm actually um i'm actually an adherent to the simulation hypothesis all right well it's philippines man what happened last week why do you uh stop people why can't people buy the gangstop shares the people demand an answer and they want to know the details in the truth yep um okay so let me let me start by giving a little bit of background is um um there's actually a couple of companies so there's a an introducing broker dealer uh called robinhood financial and that basically is the app that you uh know and love it processes trades uh you're a customer of robinhood financial then there's a clearing broker dealer um robin the securities that clears and settles the trades and then we have revenue which is our crypto business um all of which uh

all of these are kind of different entities that are differently operated so basically wednesday of last week we just had you know unprecedented volume unprecedented load on the system uh a lot of these you know so-called mean stocks were you know going viral on social media and people were people were joining robin hood and there was a lot of net buy activity on them um as you guys all know and robinhood at this time i think was number one on the ios app store and uh pretty close if not number one on google play as well so just unprecedented activity um and so thursday morning right so i'm asleep but at 3 30 a.

m pacific our operations team receives a file from the nscc which is the national securities clearing corporation so basically as a broker as a clearing broker and this is where robert the securities comes in we have to put up money to the nscc based on some factors including things like the volatility of the of the trading activity concentration into certain securities this is the equities business so it's based on stock trading and not options trading or anything else um so they gave us a file with a deposit and the request was around three billion dollars um which is you know about an order of magnitude more than what it typically is right so um no no why is this so high like this seems like like it sounds like this is an unprecedented increase in

demand for capital what formula did they use to calculate that well um yeah and just to give context you know robinhood up until that point has raised you know a little bit around two billion dollars in total uh venture capital up until now so it's a big number like three billion dollars is um is a large number right so and um know the details are we don't have the full details it's a little bit of an opaque formula but there's a component called the var of it which is value at risk and uh that's based on kind of some fairly quantitative things although it's not it's not fully transparent so uh there are ways to reverse engineer it but uh it's not kind of publicly shared and then there's a special component which is discretionary um so that's that kind

of acts as a multiplier and um basically discretionary discretionary meaning like it's just their opinion yeah they're uh it's it's a little bit i mean i'm sure there's there's definitely more more than just their opinion but here um it's like it seems weird that you'd get a sudden 10 billion dollar demand you know three billion three minutes yeah it was three billion okay you know just suddenly out of nowhere um about um you know what was what was going on in what's going on in the in the nscc to make these calculations but um yeah essentially what's holding you hostage right now [Music] and i actually was asleep at this point you know the operation scheme was uh was fielding this at three o'clock and then um you know we got back we put our heads together

um you know our chief operating officer basically said look let's call up the higher ups at the nscc and kind of figure out what's going on maybe there's some way we can work with them and basically there was another call and they lowered it to something like 1.

4 billion dollars from street okay we're making some progress right and then that's still a high number and then we basically proposed well let's let's explain how we plan to um let's explain how you know we'll manage risk in these symbols throughout the day uh we propose um marking these volatile stocks that were kind of driving driving the activity physician closing only and then at about an hour before market closed market open so 5 30 or 5 in the morning they came back and they said okay the charge is or the deposit 700 million which we then deposited and paid promptly and then um everything was fine that that um explains why we had to um we had to mark these symbols position closing only and also why you know we didn't want to we knew this was a

bad outcome for customers um you know part of what's been really difficult is um robbing the stands for you know democratizing access to stocks and yeah we want to give people the access so it has been very very challenging but we had no choice in this case we had to conform to our regulatory capital requirements and so the team did did what they could to make sure we were available for customers details of uh of all of that okay but you know and to be fair we were we were i think there was legitimate sort of turmoil in the markets like these are unprecedented events with these mean stocks and you know there was a lot of activity so there probably is um some amount of extra risk in the system that warrants higher higher requirements so it's not entirely

unreasonable but we do operational processes to make sure that customers that have positions could sell their open positions because obviously restricting someone we got a lot of questions about okay you had to restrict buying why didn't you also restrict selling and the fact of the matter is if people get really pissed off if they're holding stock and they want to sell it and they can't so i think that's that's categorically worse so um and lots of other brokers i think were in the same situation robinhood was in the news but you just sort of heard this industry why i read other brokers uh basically restricted the same exact activity all right so it sounds like this this organization should you know it calls you up and they basically have gone through

your head either they had all this money or [Music] yeah i think that's fair you know we have to comply with these requirements financial institutions have requirements um you know the the formula behind these requirements um i think um it would obviously be ideal if there was a little bit more transparency so we could plan better around that um you know but to be fair we were able to open and serve our customers and um you know 24 24 hours later our team raised over a billion dollars in capital so that when we when we did open uh well when we do open tomorrow morning we'll be able to kind of relax the stringent position limits that we put on these securities on friday will there be any limits well i think there's always going to be some theoretical limit

like we don't have infinite capital right and on friday there are limits um so there's always there's always gonna have to be some limit i think the question is you know will the limits be high enough to the point where you know some it won't impact you know 99.

9 plus percent of customers so if you know someone were to deposit a hundred billion dollars and decide to trade in one stock like that that wouldn't be possible you know all right um yeah listen and fair those um have been reasonable so we are i think the the one thing that is maybe not clear to people is robin is a participant in the financial system all of these um so we do get a lot of questions about you know when you work with market makers when you work with clearing houses uh vertically integrating and getting um the financial system that allows customers to trade shares is sort of a complex web of multiple parties and you know it's hard to everyone says it could be better it could be improved um it's just the necessity of trading equities in

the us that you have to do all these things to what degree are you beholden to citadel i mean like basically but then what happened yeah there's a rumor that uh you know this was this was a clearing house this was a clearinghouse decision and it was just based on the capital requirements so um from our perspective you know citadel and other market makers who are involved in that but wouldn't they have a strong say in who got put in charge of that organization since it's an industry consortium not a government consortium the conspiracy theories a little bit so i just have no reason to believe that that's the case you know okay all right um well i guess we'll see what happens with future actions um for um on i know it's pretty late and uh thank you so much

you know i deeply appreciate it and i'm sure everyone in the audience here and watching elsewhere so thank you so much we cry and pick a song that's the first thing so i'm gonna play thank you so much all right i think i think we're done wow wow that was insane guys whoa thank you we just with this history guys