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Jill on Money with Jill Schlesinger

The China Hustle Part Two

Jill on Money with Jill Schlesinger

Audacy

Self-improvement, Business, Investing, Education

4.61.8K Ratings

🗓️ 27 December 2020

⏱️ 19 minutes

🧾️ Download transcript

Summary

Next up on the list of films to stream this holiday weekend is The China Hustle. The documentary begins amid the depths of the 2008 financial crisis, when we meet protagonist Dan David and a band of Wall Street outsiders. These detective-like investors operate on the fringes of the financial world, scouring global markets for money making opportunities. With the U.S. economy and markets in a tailspin, they turn to China, where there is what seems like a modern day gold rush. Chinese stock market indexes are doubling every year and the potential seems endless. There’s one problem, though: U.S. investors can’t participate because they are barred from investing directly in Chinese markets. But this is America, and people always find a way. A few Wall Street operators create a novel solution by bringing hundreds of promising Chinese companies directly to U.S. stock markets. All of the sudden, US investors can get in on the Chinese miracle, without leaving the comforting confines of the NYSE and the NASDAQ. It all seems to be going well, until detectives discover that most of the companies they’re investing in are frauds, producing phony balance sheets, claiming sham inventory levels and celebrating non-existent profits. The investors flip their strategy on its head and begin to master the art of short selling, essentially, betting that a company will fail. Have a money question? Email me here. Please leave us a rating or review in Apple Podcasts. "Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com. To learn more about listener data and our privacy practices visit: https://www.audacyinc.com/privacy-policy Learn more about your ad choices. Visit https://podcastchoices.com/adchoices

Transcript

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0:00.0

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0:03.3

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0:05.3

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0:09.8

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0:14.0

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0:17.0

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0:20.0

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0:25.0

Get tax pots with Monzo Business Pro for £5 a month.

0:28.1

Te's and sees apply.

0:29.3

Welcome to the Jill on Money Podcast. It is Sunday December 27th and today we're

0:39.0

airing the second part of our interview with the director of the China Hustle that's a documentary about some pretty scary

0:46.7

shady Chinese companies the director is Jed Rothstein his main character is Dan David.

0:53.0

In this part of the interview, we talk about how they tried to expose these shady companies

0:58.6

to US authorities, which didn't work, and so they decided to do what every investor does, short them.

1:04.7

You'll also hear about the ordinary investors who lost their shirts betting on some of these

1:09.6

Chinese companies.

1:11.1

Here's the second part of our interview with Jed Rothstein and Dan David.

1:15.1

You go hire these guys, you find out that in fact it is fraudulent and then you start beginning

1:21.2

the process of saying let's now bet against them?

1:24.0

No. What happens then?

1:26.0

I said well we don't want to be short sellers. That's not our outlook. We're value investors.

1:32.0

Let's not try and learn a new game. Let's go to the

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