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Welcome to Animal Spirits, the podcast that takes a completely different look at markets and investing.

Hosted by Michael Bannick and Ben Carlson.

Two guys who study the markets as a passion and invest for all the

right reasons.

Michael Battnick and Ben Carlson work for Ritholz's wealth management.

All opinions and should not be relied upon for investment decisions.

Clients of RIT holds wealth management

may maintain positions in the securities

discussed in this podcast.

So this week, there was some news with We Work. Are they going through like a reorg? What is this?

I think this is a forced reorg because they didn't get as much money as they thought. So

Soft Bank, which we mentioned before, was going to give them $16 billion to buy the majority of the

firm and now they've decided to instead give them $2 billion which seems like a

little less. Do you think the full story has not come out yet? I think that's possible.

I think they're, they, this company went just full bore and tried to just go for it while money was flowing.

And they're going to be one of the ones that on the other side is going to have some problems I think.

Well you're saying their community adjusted EBITDA won't hold up to scrutiny?

So the Wall Street Journal said in the first nine months of 2018 they posted revenues of $1.2 billion in a net loss of about 1.2 billion dollars.

So that's almost perfect if you think about it, but obviously a lot of these companies

are going for the spend a lot of money now get a bunch of people and

figure out the scale and then profit stuff later but I guess it's got to be a

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