garvia.es

Student Recap — Oct 29, 2025

🧭 1) Logistics & Grading

💡 2) What We Did Today

2.1 — Exploring Google NotebookLM

We started with a live demo of Google’s free AI tool NotebookLM, which allows you to:

🔍 Real example from class:

🧠 Lesson: Tools like NotebookLM can compress thousands of pages of financial information into actionable insights.
But — technology multiplies understanding only if you’ve built the base knowledge first.

2.2 — Macro Context: The FOMC Meeting

Today is a Federal Reserve meeting (FOMC) day.

💭 Key reflection:
The Fed acts as the system’s “thermometer.” Even if the thermometer is off, people still feel the temperature through markets.

2.3 — From Maps to Markets

🗺 Takeaway:
A map (your notes, diagrams, summaries) is not the territory (the real economy, politics, markets).
To master finance, you must connect the two.

2.4 — Introduction to Banks (Preview for Next Class)

🧩 3) Key Concepts to Remember

Concept Meaning / Application
Efficient Market Hypothesis (EMH) Markets reflect available information; arbitrage keeps prices fair.
QE / QT Quantitative easing/tightening: central bank injects or withdraws liquidity.
M0 vs M2 Monetary base (cash + reserves) vs. money supply (adds deposits).
Holy Trinity Risk – Return – Liquidity (the three forces in finance).
Map ≠ Territory Notes ≠ reality; knowledge must connect to current events.
Data-dependent paradox Acting on data when official data are frozen (e.g., U.S. shutdown).

🧠 4) Suggested Activities for This Week

  1. Use NotebookLM:

    • Upload the course summaries and build your own mind map.

    • Generate 10 flashcards on:

      • Supervisors (Central Banks, SEC, etc.)

      • Monetary aggregates (M0, M1, M2)

      • QE vs QT

    • Create a 1-minute audio recap to review key ideas before bed.

  2. Write short summaries (1–2 paragraphs each):

    • How is the financial system divided and supervised?

    • What’s the difference between M0 and M2?

    • Explain QE/QT in simple terms.

    • Name and describe the three main banking risks.

🏦 5) Next Session Preview — Banks & Basel

We’ll cover:

✨ 6) Final Thoughts

Transcription

29 de octubre de 2025, 10:36a.m.

Hola.
Yeah, yeah, I don’t know.
Yeah, yeah.
I was going to say that we speak.
But this is a chat with a lot of teachers. Don’t. Don’t show your weakness too much. I mean, there is no need to say that I whatever this goes someone.
Let me you.
Did they share with you the transcripts? If I haven’t share with you all transcripts, ask me back to do it and I will do it, yes.
Right in the Where are you?
Uh, you got it because you got it all. These are you guys, no?
Here, here, here.
I don’t want to synchronize all messages. I just want messages from this, from this whatever. OK, I OK, I want to synchronize, but let me close this.
Let me start with this one there and let me share. I have already shared this with you I think, isn’t it? Let me here I’ve got this.
OK, this goes one hand I I should get used to once I create. Once I create the file with the transcript and with the summary, I should share immediately in the group with you.
I should do it. I should get this. You have cut your hair. I have cut my hair. We have cut our hairs. I’m improving my English. OK, I’m synchronizing this. OK, I don’t want to. Oh, I should open what’s up there.
But I’m not going to anyone have any one of can you research? There was a group that all transcripts that I have with you transcripts are so yes please if any there’s one anyone is going to do it.
This one because I don’t want to feed them with this. Anyone can do it.
No one. I need someone rising. Anyone is on the way.
I’m gonna let me open Google.
Google, you know who will get it.
Who knows? Who does not know?
You have not raised his hand or her hand? You know it’s all? No. Let me… No, no, no. Oh, yes. Great. Great, great, great. Thanks.
Let me just write to solve one hard and solve a.
OK, let me because doing this this is I feel.
Oh.
Who that now? Who knows? Google.
Yeah.
Yes.
No, I think that this is a better way in order to communicate with you and that’s asking asking you to raise your hand.
OK, OK. I’m gonna take attendance now. I don’t care. I mean, OK, perfect. Now. Perfect. I here are the transcripts. Yes, I should send you. I don’t have all transcripts.
I’m just downloading all all these transcripts I have already talked about. These are in format MD that is plain text.
Uh, I.
That is one way in my computer. I don’t need to do this. I mean, it’s just pressing all these buttons and it goes. Sorry for this. It’s more the time I dedicate to pressing buttons that somewhat something else. There are not all transcripts, yes. So what we are going to see is bias. Bias because we are not.
At all, yes, I would look at Lane.
Hey.com.
Hey.
Please then steps.
Here I am.
Let me come back.
Nämlich.
Now I’m not think in German.
I’m not Talking german.
I’m the Talking german like so I like a german.
Hey.
Notebook LM is Google’s is Gemini and I have. I don’t pay anything to this so you can use it without any kind of. I pay 20 euros. It’s a GPT and it’s one of the most.
Most is the better 20 euros I have paid in my monthly is the best subscription I have because with ChatGPT I do almost everything regarding.
Order or regarding managing information.
I also learn new things through ChatGPT, but not I read whatever. Let me notebook LM, yes.
I’m gonna create a new.
Telefiono Narcivo say, oh, this is Spanish, but I’m gonna go descargas, yes, and these are.
I don’t know. I don’t. Well, I’m gonna see it now because probably I would resend all of you, all the transcripts again, because I don’t know.
If I have send you to just the summary, I’m gonna open one of these.
Let me see. Oh.
Sorry, I have not for example in this one.
There are no transcriptions. Sorry, it’s not the same. Let me see.
Now it’s not the same. I’m going to talk about this next day, next day with a proper class. Why? Or let me show you. Let me show you. I’m going to talk about this. I’m going to resend you all the files together with the transcript.
Yes. For example, this is another class I teach in Spanish and in this class not only not only do I have the summary, but also I have the transcription of the whole class, yes.
And running Google Notebook LM with the file combined with the transcription is absolutely amazing because it’s like having all the information you have saved during the class live inside.
BLM.
And you can just, you can start asking things. In this case, what I have sent you is not bad. It’s not bad.
What I have sent you is not bad. For example, I can say a.
I I can, for example, mappamental. Yes, this is not bad, but it could be much, much, much better, yes. And I want to show you the full equipment car, not just a car with wheels, yes.
I have press this button. Mental map. Let me open here.
It’s in Spanish because the language is in Spanish, but let me do it again. Let me close this. Let me steal you mental map. Oh, this is the only one that I cannot. Let me selection are la idioma English, yes.
Generate. I am generating an audio summary, yes, and I’m going to open this mental map.
For example, Mercado Sinaceros. This is the course. Efficient market hypothesis, institutions and regulation, financial instruments, Holy Trinity, Holy Trinity. That is, oh, sorry, Holy Trinity, Holy Trinity.
Holy Trinity here, I mean Holy Trinity, yes, that is.
Risk, return and liquidity, then risk, uncertainty, black swans. And then once you press one of these, you can get all the information regarding the concepts. For example, let me open this financial instruments.
Let me there should be a button in order to close to close everything. Yes, financial markets. This is my course.
What do you want me to press, John?
Financial instruments, then types, most common instruments or valuation valuation.
Present value, future value, internal rate of return, duration. I haven’t talked too much about valuation, but common instruments, stocks, bonds, loans, derivatives and money. Then definition and types. Security. What is the definition?
Then for example, if I want to know, let me move somewhere here. Efficient market hypothesis, yes, arbitrage and then high frequency trading. I press high frequency trading.
And.
In.
In English, please.
I press high frequency trading.
High frequency trading example is using the sources to powerfully illustrate the role of arbitra as the core mechanism driving efficiently efficiency in modern finance market. Here is a discussion of what the sources state regarding high frequency trading. The core mechanism of efficiency arbitrage is the final profit generation market.
Correction, do you see what I’m showing you?
Any thoughts?
Any thoughts?
This is amazing!
Let me This is amazing. And I haven’t shown you probably for you. I mean, let me. Sorry for what I’m going to say. Sorry for what I’m going to say.
I know that you are here just for my body. You don’t care about my personality if you are just looking for ready.
This is much more than enough. With this you can get everything.
You just put this so because there are times that more is not better. I want to send you much, much, much more information. I want I want to send you all these with the transcripts. Why?
Because if I have, if I would have transcripts there, what is John one of the first questions I’m going to ask who will know who Kalem?
If I say liquidity, what is the name?
I don’t know yet the answer, but I’m sure that.
We will not look at them will say.
I have all classes recorded. I have done with other students and it’s absolutely amazing because you can get all information you need regarding the know how many times do I have mentioned Trump?
How many times do I have mention pay?
Hey.
If I say fit.
If anyone knows how to get extra Gray.
Today when I say pet, please raise, raise your hand.
Raise your hand. Who knows? No. Raise your hand. No, no. Raise your hand if you know how to get extra grade today. Me say fit. Who knows? Please.
Raise your hand. Raise your hand.
OK, more please. I’m going to check. I’m going to check if you know why today that is important now.
OK.
The Fed are carrying. Yes, today is the meeting. Today is the meeting. Today, this afternoon is the meeting and I need to talk about banking.
And I want to show you this.
You know that I’m near collapse. Also, you know that there are, if you see the transcripts in the transcripts, a lot of.
What do you say this asterisko in Spanish?
If you see a lot of this is because I have set back and because I say I didn’t know what was going on because and format NB abstract is bold and I say I I saw the transcript and from one point everything was bold.
And it’s because the astronaut made. Yep. Sorry for this. Jerome Powell, today he’s going to talk. Jerome Powell, today he’s going to talk. Yes.
This is important and today’s the day. I did a minute. I did a minute and next.
Next Monday we don’t have class. Not because of me, because of the university. Next Wednesday we have class. Important thing also Monday after next Monday we don’t have class. Wednesday after next Monday, yes, we have.
But tell me, let me say in the final.
There won’t be negative points regarding the test.
There won’t be negative points regarding this, so all of you can answer all things you want. Make sense. This is better.
Yes, OK, OK, let me continue with this. This is better for you because here there is less information, but personally I want to show you the full, the full equipment.
But with this, you can fully study my course without any problem. And let me open this here. Efficient market hypothesis.
Your political context, let me.
Context or geopolitical context, accounting, language, monetary geopolitics and markets.
Briggs of power, and on sales and tariffs.
I’m looking for monetary policy.
I can go to Nixon, Nixon, Chuck.
Here it is. Institutions and regulation, central banks, monetary policy tools before 2008, after 2008 taxes.
This is amazing.
This is absolutely amazing. Here you have the whole course. If you take all the transcripts, not the transcripts. Sorry because you don’t have the transcripts. If you are, if you take all the summaries and you put it in your own Google notebook LM.
You will see this in English.
This is Spanish because the computer is in Spanish and because mine is in Spanish and you can see your own in English. Yes, central banks. Oh, Ris banking, Ris bank, then of Fed.
And here probably I was looking for Jerome Powell. And because I’m looking for Jerome Powell, I’m going to ask where is Jerome Powell? If Jerome Powell is not in the summaries, I don’t know if he is or not. If Jerome Powell is not in the summaries.
He would say that with the information he has, he has not found anything.
If I ask about Julius Caesar or if I ask about Mitterrand or about Pedro Sanzes and I have not mentioned these names in class, you will know.
Based on the sources and answers in English, because I have asked in English. Based on the sources, Jerome Paul is referred primal in the context of his role and perfect. Jerome Paul is mentioned the first day of class, yes.
FOC Federal Open Market Committee. What is what is the Federal Open Market Committee? I want to talk about banks and I’m going to talk about banks. But today’s the meeting, today’s meeting, today’s speech, the meeting start yesterday.
And FOMSMC is what is being what the people that meets together. And in this meeting there are two groups of people. On one hand, seven members of the Junta is in Spanish, seven members of the borough of the central bank.
And then there is the political fight. You can see Christopher Weller Bowman, the one that has been sent by Trump one month ago. I mean, these seven names are absolutely important and together the decision is been taken by these seven.
Plus five of the.
Five of the 12 governors of the.
Federal banks that conform Fed. Fed is formed by 12 banks. Among all these 12 banks, there is one that is much, much powerful than the others. That is New York.
You don’t need to know this because this afternoon is the meeting and the political thing is on the way. It’s important you to know how all these things work. The the decision is being taken by all together. Yes, on one hand there are seven members of the Central Bank Committee and on the other hand there are five.
Among 12 New York Bank always has always a seat on the Fed committee and in case, in case the Fed should press 1 button and do things, who is the one that will press this button?
The New York one. New York one is the one that is closer to the market, yes. And among the rest of the banks, they are seated in groups of three. Everyone goes to the meeting, but just one vote, yes.
Are you following me?
It is important.
Kate Perry. You know Kate Perry? No Kardashian. You know Kim Kardashian. What is the name of the father that is the lawyer? OG Simpson? You know who I’m talking about that is transgender or something like this?
I don’t know what I’m talking about. There are two fathers. Perfect. I don’t know what I’m talking about, but probably you know what I’m talking about. If you want to understand Kim Kardashian War, knowing this thing that I have say probably is important.
ISIS, I don’t know what I’m talking about, but if you want to understand Kim Kim Kardashian war, this is important.
Regarding monetary policy, what is important in this class to know that today is the meeting and to know that we don’t know what is going to happen, but we know what is going to happen and the answer is 25 basic points. What is going to happen next meeting in December?
Again, we don’t know what is going to happen, but the answer will be again almost for sure. I mean almost for sure. I don’t know it for sure or not, but the answer will be 25 basic points. Yes, these things that I have said regarding federal banks and this general culture.
That if you want to know, or if you are interested more in politics and knowing what is going on and whole things that Trump said affects the economy matters, matters much more than Kim Kardashian.
With all respect to Bill Garcia.
Makes sense.
OK, today, today there is the meeting. Today there is the meeting.
What else? What else? What else? Oh, one important thing.
This is this is absolutely important and probably this will be asked in the final. I don’t know how or oh I’m transcripted so so if I say that something is going to be asked in the final probably this.
What Powell will say this afternoon almost for sure, more than four times at least. Let me show you. Let me show you. I have already go through this way. I’m not going to spend too much time talking about Paul.
Holy market.
I don’t want to dedicate too much time to Poly market, yes.
A decision in October. What is this? 25 for sure, 25 basic points. Look for sure is 98%, but I don’t care too much about this thing. Let me see if I can go to let us see.
Rate January 2026.
October January meeting go by December meeting, December meeting, December meeting, let me December meeting.
Oh, no. Fed rate cut by no Fed rate cut by 9999. They are saying also that there should be a cut. Sorry, I have a Bowell December.
Will now Powell December. Sorry, what will Powell say during October, December. What is December?
What is December? I want to know about December meeting decision in October. I want to oh, Fed decision.
Fed the same Fed decision in December 80 percent, 25 basic points, yes and.
The decision in January.
OK.
OK, this is what I was thinking about. Yes, Fed decision in January is 25%, more or less 25% no changes, 50% no changes and 4225 basic points.
December, I was quite sure that they were going to cut interest rates in December. I’m not talking about today, today for sure. Yep. But I don’t want to say, I don’t want to go here. I want to have all this data. What will Powell say?
Inflation. He will mention inflation 123 times, almost for sure. The bets are if he will mention more than 4050 or 60 times unemployment. What is going to happen immediately after Powell’s speech finish? Someone is going to take this speech.
The transcription into ChatGPT and he will ask all these questions. Yep.
Not only, not not one after. There would be a live transcription that will be, say, counting how much worth, but whatever. I’m not talking about this. I’m not talking about this. I’m talking about something that is.
I’m looking for AIAI 62% recession, Trump, Trump pandemic 70. Sorry, he will say sorry 70%. Why he will say sorry.
We don’t know. So he could say throw water and say, oh, sorry, I have so throw some water. We don’t know. But this story is the first time I’m looking, I’m looking at it and.
Stafflation for me is the word. Stafflation is the word, but it’s not the word I’m looking for. I’m looking for another thing that is not there. What what Paul will say.
For sure, or has it has been said, I don’t know if he would say or not.
He will say we are data dependent and he will say that we will approach in a meeting by meeting.
Pitting by meeting approach, yes. What does to be data dependent mean and approaching a meeting by meeting context meeting? I don’t know what is going to happen in the future, yes. I don’t have any idea what is going to happen in the future. It it means that we are data dependent.
But let me today say one thing more. And please, I want all of you to listen to this. I want all of you to listen to this. You will say we are not independent.
Where Fred gets their data from?
Where Fed gets their data from? You understand the question.
Fed it’s their data from federal agencies.
That are close.
You know, but what now has not happened that time.
Because there is a shutdown. Do you understand what I’m saying?
There is no other.
Because federal agencies that give data are closed.
Will anyone see any difference today? Will anyone mention this in the media?
Yes. Have you read it? Yeah, it was in the Wall Street Journal this morning. OK, but but you understand what I’m saying. I haven’t. If you can say, Sir, the Wall Street, you’re not in the Wall Street is the place where.
Not Wallace. Not Wallace Street is New York. Sorry. And Washington is the place where we we didn’t where Jerome Powell will talk, but you understand what I’m saying.
It’s it’s like hearing the bow.
So there is a part of faith, part of faith in gold. We trust is what is written in in dollar, he said. We are data dependent on all federal agencies that bring data are closed.
And personally, yeah, but I am in Spain and I have not read Wall Street Journal this morning. But all of you understand what I’m saying. No, that he will say who will talk about data without data.
Hookers.
I care. A lot of people care. But at the end, what everyone wants, What do you want?
Continue on joining Madrid, getting the best grade possible in my exam and be happy.
What everyone is looking in like saying what I’m when I say who cares about following with data or without data, I’m not criticizing. I’m just pointing, pointing out that he will say we are data dependent. I don’t know.
I don’t know if he will say it or not, but he has said this in all meetings. He always say we are data dependent. Why? Because they are data dependent. And what does to be data dependent means that depending on data we will do one thing or another one for example.
Next Monday, 1-2 weeks ago, I thought I was going to be here, but because I am data dependent, I have heard that the university will be closed. So I’m data dependent and I won’t be here.
And if there are changes, if there is a pandemic, I am data dependent. And regarding the information I’ve got from the pandemic, yes, efficient market hypothesis has to do with information. With data we are data dependent.
As human beings, we are that element. As humans, we are that. We are that. Things about DNA, things about our thoughts, things about entropy. This is too complicated. Yes, I’m moving to quantics, but forget about quantics. What I’m just going to say is that.
What Powell is going to do this afternoon is what he does all the afternoons, but in this case today there is no doubt.
You can get data from other resources, but he normally gets data from. OK, any questions?
This point is important.
Today.
My course.
A lot of mornings. A lot of people will sleep this morning when you last. We have class on Wednesday, yes, with 97 years. Last Wednesday afternoon my grandma passed away.
I’m OK. She was 97 and was a life full of joy and effort. Yes. So I’m absolutely happy with this at once.
If something like this happened, one thing you have is the war has not stopped. You understand what I’m saying. I don’t know if you have had a casual casualty in your family. Someone has passed away.
But once someone important for you pass away, I’m feeling you happy. Probably this is Chinese thinking about these things, but the war continue moving. The war has not stopped.
Somehow, somehow same thought.
We don’t need Fed in order to continue with our lives and at the same time Fed is like the not Fed. Fed is like the controlling one that looks for stability and data.
Even to fail is like the thermometer. It measures temperature. Do I need a? Do I need to measure temperature in order to see if now I have I’m cold or hot? No, not necessary. But if I want to look as a professional, I I should come here with the temperature.
Among these things, yes, but what that is doing in these months on one hand?
Is fighting against stability. Don’t ask me why, because I don’t know, but a lot of things Trump is making fights against stability.
I don’t know if you agree or not. I’m thinking about facts and I have taking words carefully. On one hand, Trump is fighting against stability. And if you hear Powell’s speeches, he said.
I don’t care too much about fiscal policy, I just care about my mandate that is look for stability and he’s getting his mandate though.
The the dollar is makes. If I think about dollar, it’s not too much affected by Trump politics.
You sure what I mean? At the end, everything is mental. Everything is mental. I mean, I don’t need data, I don’t need numbers, I don’t need grades. But at the end also all of you need grades. I know you all of you need grades and this game is the game we are playing.
Makes sense.
OK, what will Paul will say?
Will he say sorry?
F of F stands for federal.
And I don’t. I mean, you don’t Powell job is.
A primary service. I don’t know if he’s being paid or not. If you have the the machine that brings money, probably you will be paid.
But you know what I’m talking about, no? And you, Sir John, they want to treat you now. Thanks a lot.
Thanks a lot.
Those of you that didn’t know about Google Notebook LM.
What do you think about it?
Google Notebook LM is a language model. It’s like ChatGPT, but only works with the information that you have put inside.
Personally, for me, it’s much, much more important you to know about Google, not Google and that you to know about finance.
If you tell me what do you prefer this meeting, this afternoon meeting on or your students knowing about Google, not Google. In my course I know what I should say, but I don’t care about my course. I care about you managing information and you succeeding.
1st at university and then in life. I mean if you want to succeed, and succeed doesn’t means being full of money. I don’t know what does succeed mean. Each one would have their own definition, but knowing how to manage information. I’m not talking about learning.
Yes, sorry, I’m talking about learning, but I’m not talking about.
How to get information? For example, I don’t know what that something mean. If I were you, I will go. I will go to a dictionary instead of going to Google. If you want to cook spaghettis, I will not go to ChatGPT. I will go to the to the kitchen.
You see what I’m But if you want to order information, if you have data for from your teacher, or if you have a book and you want to read the book quickly and deeply.
I will do two things. On one hand, I would read the book. There is nothing such as reading the book. If you want to read, you want to read. I continue reading books. I love reading books. I always go. I always go.
With my Kindle, I always love, always, but.
How long does it take to read a book?
If I want to manage information, Google Notebook Ellen is the.
I’m gonna.
We send this to myself. This is a was a group that I have with myself.
And here I’ve got your class and information.
OK.
Yes, let me go. Have you seen how powerful is this?
OK, let me move before going.
William Shakespeare I have press here you have. This is not mine. You have some some notebooks.
The notebooks here in uh.
Books from 50 companies. Let me see this one. Oh, whoa.
Oh, ASML is sips about energy. Wow. Oh.
Oh.
Oh.
Do you know what is this? Public reports from the 50 most important companies over all over the world?
What do you want to know?
Tell me about the.
They add.
Of AI.
In an schematic way showing in with.
Cases it is favorable and in which cases it is not.
This is a finance class, no?
I’m happy not been recording the class. I’m just taking the transit.
Favourable, Favour, Favour. How do you say Favourable, Favourable, Favourable and not favourable, for example, Alibaba Google.
Bad news. I’m really quick. Bank of America. Good news. Salesforce. Bad news, yes.
Erica, Bank of America, Nvidia and be careful regulatory changes.
Anyone has any thought?
I see some smites.
Please don’t take a picture. Thanks.
Please don’t.
Please don’t.
Diesel.
Do I have your attention?
Yeah.
I was gonna say I was gonna show you Google Notebook LM.
I was going to go into Shakespeare and I have seen the reports of the 50 biggest companies. I have just asked Google Notebook LM in which companies the impact of what the what their companies say about themselves.
And in which companies the impact of AI is positive and in which companies the impact of AI is negative?
Don’t you understand? I I don’t want to explain you why. Don’t you understand that what I have this this is ****.
Are we in a finance class?
Who? Who?
Do I need to express in words?
What does this mean?
We have 50 all the reports. What has to do it for you?
What you should do?
Just plug a robo advisor. Just plug a robo advisor and start selling and buying.
This is amazing. This is incredible. This is great. This is.
I don’t. Yeah, I have. I have written. I have brought that in order to have.
I want to meet you. This is awesome.
You understand how powerful is this?
OK.
This is absolutely incredible. This has to do with markets. This has to do with information. You have what the companies have said regarding themselves. You have there what the companies have said regarding themselves.
You remember efficient hypothesis?
There was the weak form has to do with historical prices. Then there was the semi strong form that has to do with all public available information.
Are markets efficient?
It’s not a yes or not question. Thanks to this, you can make markets much, much more efficient. Yes, can you exploit all this information?
Yes. What does Google Notebook LM do? You put reports. Why 50? Because Google Notebook LM doesn’t allow you to put more than 15 the free version.
I have never had a course with more than 50 lessons. Normally the longest are 2530. I have enough. We know we will not do collect.
And I don’t have time enough in order to to take that and put that robo advisor. I don’t know if I have time or not, or probably I’m too old, but you guys are full of time.
You guys are full of time. For me, it’s just a succeed in life to be in front of you just sharing this.
For me, I am paid just having you in class.
But I think that some of you think about a family making money or whatever, and this is the tool.
This is the tool here.
I I don’t know why I have give me a list of the companies I should.
Best in and the companies I.
Should.
I have never seen this before.
What do I feel once I see this?
I feel as if I want to be playing with that tool forever. I don’t want to. I mean, I don’t want to teach anymore. I just want to play. I want to teach, but I want to play and I can teach while playing. You see the point.
I’m not indicators.
Company Cisco.
Disco, Alphabet, Nvidia, IBM, Samsung, Novo Nordisk.
And.
Alphabet you see that the same report, the same answer is telling me to invest and not to invest.
At Meta Media. OK, Abby Novo Nordisk, Rocher, Rocter and Campbell.
I’m just descargo de responsabilia. I am not responsible of this information. It’s been written by the A I I and also I am not responsible of this information.
And don’t you see how incredible this is? Yes, three years ago, how much McKinsey, Boston Consulting Group, JP Morgan would have paid for having this tool.
Omax.
OK.
Have you heard about Pelosi ETF? Do you know who is Pelosi?
Non American students. What’s your name? Right, right. You know who is Pelosi? So Pelosi. You know her?
I heard of her. Me, Marco. She was the speaker of the.
Please.
The speaker. Oh, OK. I mean, I I don’t know. I mean, I know who is her, but not too much. He’s Democrat. Yes. And she was the speaker of the Congress. He’s in the she’s sitting in the Congress. Yes. Have you have all the ETF of Pelosi?
It’s not Pelosi. It’s here. Congressmen in the US should make public, should make public all the investments they make because of transparency.
30 days after and then there is one ETF. All of you know what is an ETF. I have talked about ETFs and ETFs will be asking the ETF is a phone that can be bought and ETF is a phone.
That can be bought as if it were a stock. It’s a phone that is being trade public, yes.
Eh, Pelosi ETF.
Pelosi ETF is 1 ETF that replicates.
What Pelosi’s family, **, ** and her and her husband, the stocks they buy and it’s an ETF that has give a perform. I don’t know if 30% or much much better than SP500 has over perform SP500.
It has two years time. I mean it’s brand new, but it’s an ETF that is great. And there is also one ETF like the Pelosi one, but with the Republicans, with one of the Republicans that makes performs well but not as good as as Pelosi.
Why I have talked about Pelosi’s ETF.
Because what I have showed you there, personally, I think that is better, is better.
What is this? Just taking the public reports and analyzing them then that Google has put all together in a web page. This is amazing.
OK, more questions, more questions. No, there are there are no big questions, but any questions?
Don’t you feel this Sasha? John, what do you think about this? Incredible. Thanks. Thanks. Thanks. If you don’t believe what you are saying, like me, but but.
I am amazing. I’m amazed. This is awesome. Whatever. There’s another way. One thing you can do with this is turning off, turning off and just.
Turning on the one you want, you want.
I have. I’m just going to turn on Bersad Hathaway one. If I say Bersad Hathaway, who do you should think about? Warren Buffett. Warren Buffett. Warren Buffett is a name.
Uh, give me all.
The information.
Regarding the report, look what I have done. I have disconnected all the phones or the references and I have just marked one and the question I am asking he will understand that will be asked regarding the only reference that I have marked down.
Make sense?
Give me all the information regarding the report. This is Warren Buffett.
And I am going to send you immediately, not immediately today, this night or whatever I put in front of my computer and I take the transcript, I’m going to send you the transcript of this class.
Look, give me all like, oh, it’s information, financial, metrics.
I want a list of the new companies they have best in invest in.
I’m there.
Liquidity position, yes.
Why I’m asking this question without reading? Because I don’t want to make you lose too much time. I just want to go. They have they have both.
OK, 5 portfolio. They are American Express Company, Apple, Bank of America, Coca-Cola and Chevron Company Corporation. Sorry, 69% liquidity.
They have 42 billions in liquidity and no 42. No, sorry, they have in liquidity they have.
300 Oh no, also insurance.
They have more than 400 billion in liquidity. What does this mean?
Warren Buffett sold a lot of things in October. He has not bought anything yet. He’s prepared for a sock. Warren Buffett is prepared for a sock, a sock and what Warren Buffett will do.
Buy. Once this happens, he’s prepared for buying. Make sense.
OK. Uh, let me talk about banks. Let me talk about banks.
I have asked. I have another group of students.
And I have told I have the exam with them. I I realise how powerful is. I realise how powerful is Google Notebook LM with my transcripts two days ago. I have one exam with them tomorrow and I have told them that I’m going to give extra extra credit to those that show me how to use Google Notebook.
LM in a creative way and they are. He has made this video then.
He’s there and let me show you the video. Video takes time. I’m going to go to oh, sorry, I have pressed one button before. This is my notebook. Financial market institutions. This is my notebook and I have pressed here.
Video state I’m gonna press a video summary, yes.
And the video is generating, but before I have press here.
Welcome to the Deep Dive. Today we’re aiming for something ambitious. We leave it as the master key to understanding the global financial markets. Yeah, we’re trying to cut through the noise. We’ve got this whole stack of notes really digging into the fundamentals, the architecture.
the core framework, the language, you know, the tensions that actually drive the whole system. We’re looking at the connections between the big players, the institutions, the tools they use, the instruments, and well, global events with all the language.
We can go like this. Finance is really about managing the uncertainty. It doesn’t right. It manages. And the tools we use, stocks, bonds, options. They’re like Lego bricks. You use them to build structures, manage risk, hedge against whatever might happen. OK, so let’s start with the basics. Before you can build anything, we need the language, which finance is.
Accounting. Absolutely. It all starts there. Two main things you need to grasp. First, the balance sheet, right? Assets, all abilities plus equity. What you own equal what you owe plus what’s left for the owners. It’s like a photo snapshot in time. Precisely. And then you’ve got the peanut profit loss.
Exactly. It tells the story over a period, income, expenses, profit. This is crucial because, well, how do you value a company? How do you know if it can repay its steps? It comes from performance from that P&L story.
The balance sheet shows structure, the PNL show viability. Makes sense. OK, now the tools themselves, we talk about securities, stocks, bonds, options, that kind of thing. But there’s a more technical term for financial asset. What’s the deal there? Good question.
The key thing is a financial asset is intangible. Its value comes purely from a contractual point.
What do you think?
It’s absolutely amazing. Absolutely amazing. Absolutely amazing. Let me just finance these are where you you are this now.
Document.
Here you have a whole summary of all the information that I have given you during the class.
What is up? What is important? Several things that are important.
I will talk about banks next day. I will talk about banks next day. I will talk about banks next day.
There are things that are important. Why? Why now I can do so much things in a short period of time? Because I have planned.
The seed and I have water the seed for a lot of time, a lot of time now, but I have the first day of class. I told you that I was going to start recording my own classes and I didn’t know what I what was going to happen.
I don’t. I don’t know what I’m gonna do with all this information.
I don’t know. I didn’t know. But I did it. And I have all the transcripts. Well, and I’m going to say all the transcripts with you. I don’t have any any problem. First day you thought of first day of class. I was all the transcripts are mine. It’s my secret.
I’m going to say all without any doubt, because the more I serve, the more I give back, the more this class probably has been one of the classes.
In my life where I have learned the most.
Who is the one that learned the most? Someone has told me not to say this, but in one class, the one that learned the most is the teacher. Well, you cannot say this someone because.
You should be a knowledge. You are the one that learn.
There is a work that has to be done before. This is not just plugging the IAI. Think about a Ferrari. I’m I’m talking about a Ferrari, not a normal car that has been.
I don’t know if, but at least I know I know I have read about 3 people.
And there are more for three people that passed away because they see, they see on a Ferrari. They just is so, so sensitive, sensitive, sensitive or sensible, sensitive. No, sensible, sensible.
Sensitive. You just you just press a little and it runs and if you don’t know what you are doing, you you kill yourself. Why? Because you are not used to driving in this sense, so before driving.
Not not just a Ferrari before arriving.
Think about yourself. Think about your kids. Think about people you love before driving. You should know how to walk.
And not only driving is everything. You should also play sports. You should also go to the gym. If you just drive 4040 kilometres, you just drive 40 kilometres. This means that you have made a marathon.
No one will say, oh, I have made a marathon because I take my car and I have drove 40 kilometres. All of you know that making a running a marathon is different than driving 40 kilometres. Make sense? All of you see the difference?
So what I’m saying drive a lot, drive a lot, travel a lot, not just drive. Take planes, take trains in different places, but also walk.
Also take care with your health, take care with what you are eating, take care with talk with people and also please, please, I beg you, breathe.
Read. Read. Not just, not just, oh, not just plug and play.
Work out your brain. Do exercises right with hand, with the hand, right. Why? Because if you don’t do it, the problem is going to be yours. Because at the end, such GPT works. Why this works so well for me? Why do I enjoy it? Because.
I’ve been with, I’ve been working without ChatGPT and what I do now is I continue teaching. Same way, same way. Today I should speak about banks and I have not to speak about banks, but I’m going to send you a summary and I have why I’m not talking about banks because what I have seen in the mental map.
It’s so it’s. I’m happy with what I have done. It’s also and also you have all this access to information.
Now I can. I’m not going to stop it, but now I can stop the course and say, oh, all things that I have teach are enough. I’m not going to do it. But after seeing all this, I said I was worried because there were two Mondays less in class, less of class.
But I’m going to teach banks. I’m going to talk about banks. I’m going to talk a little bit. I don’t know yet about insurance. It depends on time. But I’m going to talk about bonds, fixed income. I’m going to talk about equity that I have already talked about them. And then I will talk, depending on time, a little bit about derivatives.
But it’s just going over financial instruments, just going over financial instruments. But the most important thing I have already talked about that and what is that most important thing?
Not the most important. The most important thing is taking care, thinking about your family. This is the most important. Apart from human things, most important thing is understanding the map and inside the map, understanding that not only the map, the map is not the reality.
One thing is the map, and another thing is what Jerome Powell would say. In the map, Federal Reserve has a lot of data.
We are like this afternoon. Who cares about data?
But one thing is the map and another different thing is the territory, territory. One thing is the map and another thing is the territory. And then inside the map there are agents. I have talked about traders, I have talked about brokers, I have talked about financial institutions, I have talked about it years.
I’ve talked a lot about ETFs. That ETF is like an investment fund. But personally, if I were you, I will not invest in funds. I will just invest in ETFs. And this is not an invest, an investing advice piece of advice. You see what I mean?
What I mean is that.
What I mean is that I have already talked about all things and I don’t care because I have to record most of them and I have just seen that the map is correct. I have done, I have done the map in one second. What I’m going to do, not next next class, I will talk about bugs.
Next class I will talk about banks, but what I will do?
Or what I can do now. I’m not. I’m generating one video. I don’t. I don’t know about this video, but once I have this video I will share with you or you can create your own questionnaire.
This is going to be faster. No question are you know, sorry. I love this.
Regenerating target us.
And the target us.
Oh.
Much things. Sorry in the tarjetas tarjetas is car. In each car there is one idea. You press the car and after there is there is the idea and then the answer to the car. But I have played with that.
And you just saw the idea and it’s one of the notions we have gone through the the course and with the idea we can continue play. If you hear the summary that has been made, it’s much better than my class.
I jump from one place to another one, me explaining I’m not the best one explaining then there my English is a disaster. The summary that I have sent you is much better than my class and it’s just 12 minutes. If you don’t understand one word, you can.
Go back and they out there are the questions personally.
I would love.
I would love, yes, I’m not going to do it. I’m not going to do it, but personally I would love to pass the whole course.
What are the the three division principal divisions of the balance sheet of one company?
Assets, liability, assets, liabilities and equity.
Next one in finance, what is being registered in the P&L?
Income, incomes, expenses.
What is the holy Trinity? This is one of the test questions. This is one of the questions I have asked in the text. What is the holy Trinity? I have not upload. I have not allowed the meter.
I’m so happy to see this question here, because at the end everything makes sense. What is the holy cremity?
Liquidity and two more. I like this answer. Liquidity and two more. Normally the answer is the others and liquidity. Nobody thinks about liquidity.
Return risk and equity. Return risk and equity. Return risk and equity.
And tell me.
General term for instruments that can be traded as stocks, bonds and options is how do we call it? What do we call it? I don’t know.
How do we call financial instruments that are securities for the I would say securities. I have teach this. This is what I have say in class and I don’t know the answer.
I would say securities. Oh, securities. So happy of passing my own.
Bonds, loans are dead. What is the difference between a bond and a loan? A bond and a loan?
Well, so, so I’m not going to do this and I’m going to learn now, but but I’m getting on fire because I love the question he’s asking me because are the questions that I would like to hear.
But what is the difference between a bone and a lone?
We’ve got is a loan, but not every loan has to be a loan.
At the end, it has to do with lending money, asking money.
Loans are in normal life. If you need money, what what you will? How do you, how will you get your money? You go to the bank and ask for a loan. People, normal people, if they look for money, they look for loans.
But why do I talk so much about loans and why do I not talk about loans? Do you understand the question?
Why do I talk? Why do I talk about bonds? And why do I not talk about loans?
You understand the question?
So.
For individuals, for individuals also.
You issue loans because you want finance.
No.
I mean, I’m individual. Let me call individual a company. I mean you can issue bonds if you want, but you should pass through this SEC. You need approval. It’s a long period of time. It’s a long process. Why do we use? Why do I talk so much about bonds?
Not because of let me tell you in the pedalogical way. I’m getting on fire with the I’m so happy today.
Why? Why? Because.
Of I’m not you are thinking and I agree with you about the primary market. What is the primary market when the instrument is issued by the first time? Is there a secondary market regarding loans?
There could be that loans are John, not loans are not standardized, standard are not standardized. That is is hard to send, to resend a loan. It’s really hard. You should.
If too much explanation, all this is the contract, this is the person. But bonds are absolutely standardized and because of that there is a secondary market and because of this secondary market they have an incredible impact in economy.
We can take public bonds, the secondary market and get the yield curve. We can take public bonds and have fixed income markets. Yes, it’s because of the standardization and it’s because of the purchase of your liquidity.
Is the purchase of liquid. So do you see that just with this I could be teaching for in December bonds?
Loans are can be traded in a market, while loans cannot be traded in a market. This is what I have already said. Probably I have explained this in class before.
And I have not shared with you the transcription. I told you that this is not the full equipment card.
He’s just enough. Any questions?
No.
For today, I think that we have had much more than enough.
Please.
Or with Google, not Google.
I will not ask in the final anything regarding Google Notebook element.
But I will do. I will work over that. Yep, a pleasure. Thanks a lot.