Original subtitles

You following the primaries?

-Yeah. Hillary Clinton's not man enough to be president.

And this Obama guy is?

-Jenn, meet Beau, our senior vice president.

-Pleasure, pleasure.

-Happy Birthday.

-It's not for a couple more days, but thanks.

-I know you from your college-football days.

I spent some time in the Bay Area.

You were quite a thing at Stanford.

-Making me sound like a has-been.

No, that's not what I meant.

- My God. - I could've gone pro.

- Yeah? - Football or baseball.

Edward offered me more, so...

-Whoa, is that the iPhone?

-I got mine, too.

This is a prototype.

Not your ordinary iPhone.

Gift from Edward. - Ooh, wow.

Dickie.

What a surprise.

- No shit. Dickie Boca. - In all these years,

I don't recall ever seeing you at one of our quarterlies.

- Abby. - This is history.

-Sounds like a reason to celebrate.

-My colleague doesn't really drink,

but maybe tonight on such a rare occasion...

-Here. Let me.

- Please. Join us. - Abby.

-To you, Richard.

This is Richard, my golden goose.

-Hi, Richard. I'm Lena.

Dickie, need a hand with that?

-And that would make you Jack... or the giant?

"Golden goose."

Isn't that from "Jack and the Beanstalk"?

-Well, in that case, I'm the giant.

-You two, stay out of trouble.

Hey, Beau, I'd like to tell you something.

-Birds of a feather.

-Bartender, let me get two bottles of Cristal.

Hey, want a dab of MDMA?

Hey.

What brought you out tonight?

-Miss.

Welcome home, Mr. Boca.

Shit.

This is some view.

But a bit stark on the decor.

There. That's better.

And this chair should go over there.

Sumsum, I hope you're okay.

My cat ran away today.

She's out there somewhere.

-I helped myself to some water.

What's all this about?

-Let me guess... A gift from Edward?

He admires you.

-He admires what I do for him.

Yeah. Golden goose.

I got that.

So what is it that you do?

-Quant trading.

-Wall Street?

Savage sport.

So, what,

you guys think you're matadors?

-No, if anything, I'm... I'm a spectator.

-I think you're more in the ring than you'd like to admit.

-I just design the models.

-So you're the math guy.

-Yeah, um... math and code.

Well, I synthesize and weigh a very large number

of different types of evidence, and, using certain metrics,

I hope to anticipate what'll happen next.

So you know what's going to happen next?

-No.

But my models do.

-How'd you get into that?

-Do you really want to know?

Bees.

-Bees? Like honeybees?

-My thesis was on how bee colony collapse disorder

would cripple California's almond production.

Turns out, it did.

That's similar to what I'm studying.

Being around winemakers and viticulturists

got me thinking about sustainability,

which eventually made me take an interest in water.

That's my concentration.

- Water. - So what happened to the bees?

-They vanished.

-What do you mean, vanished?

Like, died?

-No. No, vanished.

Like, nobody knows.

-And you didn't try to figure it out?

-Well, that's not what my models are programmed to do.

Like... like you, I-I study ecosystems.

Our Earth is 4.6 billion years old.

So we can gather inferential data

based on what's happened before.

Then I... then I program the algorithms

based on these findings, and they... they learn

from their environments.

So they're adaptive. They... They... They...

They can be applied to... To most anything.

But they're... They're predictors.

They're not mystery solvers.

Um...

I recently did one for wine.

-But you don't drink.

No.

No, I collect.

This is the wrong one.

-What?

-I own the whole floor.

You can't be serious.

-Yeah.

Velcome to my cell.

-Freezing in here.

Wow.

You weren't kidding.

-Edward always told me high-end wine offered bond-like security

with stock-like returns.

It turns out, he was right.

It doesn't correlate to other asset classes.

Pick anything you'd like.

-One day, when I'm all grown up,

I'll have a place just like this.

I don't mean the whole floor.

Just this unit would do.

Except my place will have more than just one glass.

And a decanter.

-What do I do?

-You drink it.

But smell it first.

Here.

Loosen up.

This is meant to be fun.

-You're good at this.

-It's just something that comes easy,

and it helps pay the bills.

At least until I get myself through school.

-What are you going to do with a background in water?

-Um...

I don't know.

You strayed pretty far from bees.

I don't want to be managing a wine bar

for the rest of my life.

Maybe some form of artificial recharge.

All I know is our current model of progress is unsustainable.

So?

-It's all the same.

Come on. Try.

Cherries, currants, earth.

A week-old sock.

First thing that pops into your head.

-I don't know.

Grapes.

-What?

-It's corked.

-What?

-The wine.

It's corked.

You do know what that means?

-Yes, um, TCA tainting.

Are you sure?

-Quite.

Should we grab another one?

What's that?

-That alarm?

This is when I wake up.

It's okay, Richard.

You have to learn to let things go.

I should see if my cat's back.

Thanks for the company.

Bye.

-Do you see Murdoch

as taking a different approach withThe Wall Street Journal,

which, of course, is a very different kind of newspaper

than theNew York Post? - Well, I think it should be

noted that his brand of revitalization

with theNew York Post includes it losing

tens of millions of dollars.

So News Corp is big enough to absorb the losses

that he has, with... With theNew York Post

and the... the losses he had for many years

with Fox News Corporation.

I mean, what we've seen from Murdoch's news properties,

for example, just watching Fox News within the last year,

we've learned that Mark Foley is a Democrat,

Barack Obama went to a madrasa,

and there were weapons of mass destruction in Iraq.

I think he has a broader agenda to try to really degrade

the idea of news, degrade reporting,

and degrade journalism so that journalism stands

at the same level as the kind of political message,

political propaganda he likes to push through his properties.

-Well, the thing about Mark Foley

being a Democrat was a mistake, and we all make mistakes...

...in that taped interview, is there a positive side

to Murdoch taking over The Wall Street Journal

because he's going to pour money into it.

-This at a time when...

...buying out or laying off employees.

-Well, I think the hope is that Rupert Murdoch

not only will put more money intoThe Journal,

but that he'll also leverage that brand.

-If you don't mind, I could do the news for you.

-I thought you were just going to tidy up her hair

and put a little makeup on her, but...

She looked great, as... as well.

-Come on. I can't believe...

-You can't prove that I did any of that.

-Hey, everyone, and welcome to

a special edition of "This Week."

We're here at Drake University

for the first debate of this presidential campaign.

All nine Republican candidates for president

are with us, and let's get right to them.

And here, the front-runner at 26%, Mitt Romney,

former governor of Massachusetts.

Former mayor of New York, Rudy Giuliani's next at 14%.

Mike Huckabee, former governor of Arkansas, is at 8%.

Also at 8%, Senator John McCain of Arizona.

Kansas Senator Sam Brownback is at 5%.

-The word "mosquito" derives from the Spanish word,

"little fly."

The mosquito's life-span depends on a few factors...

Temperature, humidity, sex, and time of year.

For mosquitoes to thrive, they need an environment

with a sustained water supply,

feeding hosts... Nectar or honeydew,

from which they can extract sugar.

The mosquito goes through four stages of development...

The egg, the larva, the pupa,

and, finally, the adult mosquito,

also known as the imago.

The female mosquito has a syringe-like proboscis

that is used to puncture the skin of its host,

which it uses to obtain protein to produce eggs.

This is known as the blood meal.

-Hi, Sally.

Can you get me the invite list from Friday's party,

the names and phone numbers?

If you have it handy, please e-mail it

or have it ready for me first thing tomorrow.

Thanks.

How's this for a fucking birthday gift?

Barry Bonds' baseball bat.

Game bat on top of that.

First base side, finger-blasting Bing's mom,

catching fly balls.

It's fucking awesome.

-Fucking Petco going nuts.

Ooh, hey. Damn, Dickie.

Hate to see what she looks like.

-Good morning, Mr. Boca.

-Good morning, Sally.

-Sir, do you need anything?

-No, I'm fine.

Just that list, Sally.

-Okay.

Joey, look alive.

Casanova, you going to tell me what the fuck happened?

No, look at this swing.

-This... this volatility. My... My model went berserk.

No, have you... have you seen anything out of the ordinary?

-Pbht. Other than you leaving with that girl

from the party and your face?

-But look at this interval.

-Yeah, that's self-corrected.

Market gyration.

-W-Which briefly erased half a trillion dollars

in market value? - Maybe it's latency.

- Latency? - Yep.

-That's what you're going with?

- Yeah. - No, I've factored in

how long it takes to send and receive orders.

Our quotes adjust for heavy loads.

No, sigma events, they... they...

They don't look like this. - Okay,

you tell me what it is, smart guy.

I think it's liquidity shocks.

No, but I'm not seeing any evidence.

No, what are you seeing in the flow?

-Everything, Dickie.

-Y-Y-You're confusing my model.

-Dumbest smart guy I ever saw.

-No, this c... this could... this could fuck up the whole market.

-I'm doing what everyone else is,

except I'm doing it better.

Fuck basketball.

-In the hunt for Osama bin Laden,

there's apparently been little progress.

Afghan president...

Yeah.

Okay, then.

It was nice to see you at the party on Friday.

How was the end of yournight?

-Fine.

If you don't mind, um...

-W-What am I looking at here?

-Have you heard the term "runaway world"?

Now, we've entered a realm where, because of the speed,

volume, and complexity,

this thing, it's no longer human-readable.

No, this is a young, highly impressionable system

and... and we're polluting it. - Calm down.

-I don't understand what's going on with the market,

and that's very disconcerting. - Beau told me.

-Yeah, Beau's a part of the problem.

-Mnh.

This competitiveness is good.

Your encoded trading rules, his leadership and savvy,

but you can't go around accusing...

-It'll take me the better part of two days to figure out

what happened in those... those few billionths of a second.

And this thing is happening with greater and greater frequency.

I-I can't keep up.

-Well, if you can't, no one else can.

Is that supposed to reassure me?

Listen, I-I'm not going to pretend

I know how Honeybee works, but it does.

The proof is in our P&Ls.

And I know I sleep well at night.

-Well, at least someone does.

No, we need to go offline.

-Do you mean?

-Stop trading.

I'm serious.

W-W-We have crossed some sort of Rubicon...

-If we stop, we die.

-Which, by its very definition, is an arms race.

-If it is, then we are the U.S. of fucking A, my friend.

-What I'm talking about is a cascading ripple

that could destabilize the entire market.

And if there's a fire...

No. Whenthere was a fire,

we all have to get out the same door.

-Well, now you can make sure

we are the ones closest to the door.

Edward?

What are you doing here?

-Shh.

Olé!

Olé! Olé!

-Lena!

-Hi. You've reached Lena. Please leave a message.

-Hi, Lena. It's Richard Boca.

I had a dream about you last night.

Um...

Hi, Lena. It's Richard, Boca.

W-we met at a party on Friday,

and... and then went back to my place.

You... You asked what brought me out,

and, well, you see,

we don't celebrate birthdays at the office.

Um, we do a-a kind of joint thing

at our... At our quarterlies.

I never go.

You know, I don't... I don't like the attention.

But, um, this one fell on my actual birthday.

And you made it a great one.

I'm... I'm sorry if I... I frightened you.

It's just that TCA tainting can be as high as 9.7%

and... and the mead about 3.5%.

But what really upset me was...

Hi, Lena. It's... It's Richard.

I'm... I'm sorry about the wine.

I, it was... It was very late night.

I just wanted it to be perfect.

Um, I'd like to open another bottle with you.

I hope you found your cat.

Than... Thanks for listening.

-You were involved in the question, as well.

-I don't think this is just a Republican problem.

I think this is a problem that spans the parties.

And we don't just need a change

in political parties in Washington.

We've got to have a change in attitudes

of those who are representing the people of Ameri...

-Inside is the dreaded boardroom,

where each week somebody will be fired.

-Hi, Daddy.

Daddy's coming home.

- Hi, honey. - Say, "Hi, Daddy."

-The tri-state area is under a mosquito advisory

after reported cases of West Nile virus

have surfaced at local hospitals.

It's recommended that you not keep standing water around.

There are no reported cases of the deadlier encephalitis

or malaria viruses.

This chart shows just how severe

a mosquito outbreak could be.

We're looking at the world's deadliest animals to humans.

-Dogs? They shouldn't be on there.

Who doesn't love dogs?

-The fact is, mosquitoes kill twice as many people as...

-Welcome to the world, little guy.

Just give me a moment.

What?

-I know what you're fucking doing.

-What, making us fucking money?

-Look. Look!

-Dickie, you honestly believe anything we do

can affect the overall market?

-Do you think we're too small? Have you ever slept with...

-Dude, just focus on back-testing and optimization.

You doknow what your objective is, right?

Look right here, where I bottomed.

See that? Why were we sitting out?!

-Because the model panicked!

Because it's sending it into feedback loops!

I'm warning you. I'm warning you.

-Put the fucking bat down.

-You stop fucking with it.

-Put the fucking bat down

before I break your little freakazoid ass.

-No, I'm calling Edward.

You are out. Done.

-Call Edward. Great idea. Easy, Dickie.

-Don't fucking call me that. No! No!

No!

- Mr. Boca, please. - No.

-Try to calm down.

Mr. Boca.

-Okay.

Have you seen my dry-erase board?

Dear, Mr. Boca.

You have been working yourself too hard.

Have you seen a doctor?

-For what?

-I-I could find someone to see you today.

-Just find my fucking dry-erase board?

-What if I could find someone who made house calls?

-Do you realize my responsibility,

the pressure that I'm under?

Where would this company be without me, without mymodel?

Do you know what would happen to this company

if my model were to fail?

Do you? - Mr. Werner and Mr. Harris...

Beau.

Do you think he'sgoing to fix this?

Have you not been paying attention?

I'm starting to think that

they're all working against me.

Close the door.

Close the door. I want you to hear this.

Come here. Come.

Listen.

Do you hear it?

-Buzzzzzzzzzzz.

No, do you hear it?

I'm not the one that needs a doctor.

I can feel it on the hair of my arms,

and they're talking to me, Sally.

Do you hear it?

- Please. - Just listen.

Do you know what they're saying, Sally?

- No. - Of course not.

Nor does Edward, but I do.

That is 10,000 trades a minute,

166 2/3 trades a second,

and it's in need of my constant care.

So if you'll excuse me,

I am in the middle of a very important conversation.

Be sure not to interrupt us again.

...at Tuesday's open

in the wake of the biggest one-day gains

for the Dow Jones Industrial Average

in nearly five years

as investors await news

from the Federal Reserve on interest rates.

-We have some breaking news coming in.

For that, we throw it over to Marlon at the sports desk.

-Thanks, Cindy.

Barry Bonds of the San Francisco Giants

just hit his 756th career home run,

passing Hank Aaron as the all-time leader

in Major League Baseball.

Bonds hit the home run against Washington Nationals

pitcher Mike Bassett in the fifth inning of their game

and AT&T Park in San Francisco, California.

-Bonds stands alone.

He is on top of the world tonight.

Bon appétit.

- Welcome. Just for the record. - Yes.

I never knew until I read your book...

- Yes. - ...that black swans existed.

I thought all swans were white.

-But my... my black swan doesn't have feathers.

My black swan is, number one, a surprise.

Two, it's very consequential.

Extremely consequential.

Think of the first war, the Great War.

Think of, Google, the Internet.

The Renaissance, the invention...

- These were all black swans? - They were black swans.

-There was nothing to indicate they were coming?

-Nothing to indicate... Before.

My book is about what I call the narrative fallacy is...

Just, you know, as with the Great War,

and after the fact, we go and find the causes

and effectively, you know...

We like... we don't like to accept the fact

that we live in a world...

-Shh!

I'm listening to this. - ...outside of the path

of our imagination, we don't want to accept it,

so we concoct, we invent stories

to convince ourself that we understand.

-What do you know that we don't know?

-I don't know. That's... That's exactly what I write.

-Amen, brother.

-What I'm thinking here is a very simple...

-There's no mathematical model you've created?

-Not... Not at all. I'm just showing weaknesses, alright,

and some inferential methods and weaknesses

and some disciplines, okay,

by showing that effectively calculate...

Let me give you a-a... For example,

there are a lot of disciplines, okay, economics,

political science in which the expert is no expert.

And I think that the reason... - Except in retrospect.

- Sorry? - Except in retrospect.

-Retrospect. And... And you can show

that they don't have more predictive power

than cab drivers. So what I'm...

Here, I'm showing that, effectively,

we live in a world we don't understand.

-Lena.

No, I'm just sitting here...

...drinking a 1990 Pétrus out of your glass.

The book I consulted suggests that I opened it too early...

...but, you know, it's...

...no, it's... it's... It's quaffable.

That's the word, right?

No, I wish you would join me.

-I taste...

tobacco...

-...and chocolate.

-I'm letting go now.

- Sir? - No, hold on.

Yes, Sally?

-Mr. Boca, you have not been answering your phone.

Mr. Werner has been trying to reach you.

- You were right, Sally. - I'm... sick.

Mr. Werner wants to know if you have finished

updating Honeybee.

-Tell him he can continue to sleep well at night.

-So that's a yes, then?

Because...

All of the black boxes are ready.

-Thanks.

-What is going on here?

-Enough.

Hi, Sally. - Mr. Boca, are you okay?

-No, no, I'm... I'm okay.

I need a box of citronella candles.

- Okay. - Now, how many come in a box?

And in a carton?

-Okay, yeah, yeah, no, I'll... I'll... I'll take a carton.

- Okay. - And flowers,

cut and potted. - Potted?

Let's just buy out the whole store.

Fine. Just the white ones.

And when my tux arrives, just...

Just hang it on the door handle and ring the buzzer twice.

-Okay. Right away.

-Finally...

some order and obedience.

Look upon her, ye young ones.

For all of you who didn't get to know her,

she was a great mother.

It's because of her that we are all here.

Look beyond yourselves.

We, too, are an ecosystem.

And if we are going to survive, we need to work together.

To Mother, may we all make you proud.

-We'll be making a few stops.

Now, the first is near the New York Stock Exchange.

-And now to this wine bar.

Excuse me. Abby, right?

-Yes, and may I help you?

-Well, is Lena working tonight?

-Um, may I tell her who's here?

Yes, I'm... I'm sorry.

I'm Richard.

Richard Boca.

-Richard.

Yeah, just one second.

Please, just kindly wait there.

Yeah, just right there, please.

-Richard? Is that you?

- Hi. - My God, are you okay?

-Never better.

Well, here, I got you a new one.

What's wrong? Did... Did you already get another one?

-No. They're not gloves, Richard.

-Um, you never called me back.

-I told you, I have class, and I'm here in the evenings.

Richard...

you can't keep calling.

-I'm sorry.

I didn't know how else to... To do this.

I don't know how this works.

-She's adorable.

What am I supposed to do with her?

-Dickie, my boy.

-I'll get you a glass.

Abby? - Yeah?

Thank you.

-Glad to see you. We were worried about you.

-Love the tux.

-I see you've met the new owner.

-Can you get us another one, please?

-Sure.

-Now, we are sitting on a $10 billion time bomb,

and you're doing what, buying wine bars?

A little dramatic, no?

So, did you update the model?

-Kind of.

Actually, I-I created an entirely new one.

-What?

But what was wrong with Honeybee?

It took years to perfect.

-No. I told you

that the environment is too hostile and destructive.

I taught it to defend itself.

-How long have you been working on this?

- Two days. - Two days and it's live?

-You may not understand algorithms,

but you're a master of game theory.

Quite the prisoner's dilemma you find yourself.

What makes you think I can be played?

-2005 Scarecrow.

-What's your end game?

You couldn't fuck her, so you tried to fuck me?

-Don't let him control you.

To these rare occasions.

-May they remain such.

-Come.

Sit.

Before he bought the wine bar, he helped me out with rent.

That's how it started.

The owner wasn't even looking to sell.

But when Ed would want something...

I feel trapped.

-We can do better than this.

- Hey. - Come here, little guy.

Hey.

Wow! Were you expecting someone?

What is that scent?

Is that citronella?

You moved it.

See? That's much better.

-I sold everything else.

But I saved this one just for you.

-Ooh. Crown jewel.

-Allow me.

-Should you be drinking?

The sweating.

Is it an allergy?

-It's... It's self-discovery.

One's self-preservation.

-Think you found yourself a roommate.

-You know, I got a decanter.

But I still only have one glass, so I have to share.

-Here.

-What do you think?

-You first.

So...

Worms.

Worms?

And truffles.

You know what?

I think you nailed it.

Have you been following this story?

The miners trapped in Utah.

-No.

But I know how these stories and.

-What... they'll vanish, like your bees?

Those poor people.

-There's something I'd like to show you.

-What is it?

I hope it's not more wine.

-No, no, no.

Um, it is, um...

but only in the way wine led you to water,

when water led you here.

It's your turn to let go.

-Welcome home.

-We have some breaking news on the financial markets.

For that, we turn it over to our resident economist,

Rachel Godoy, reporting from Wall Street.

-News out of the U.K. this morning.

BNP Paribas is citing, and I quote,

a complete evaporation of liquidity,

and it's blocking withdrawals

from three major hedge funds.

As a result, the Dow Jones Industrial Average

is down nearly 400 points due to credit worries.

Canadian and European stocks are also down.

The European Central Bank, United States Federal Reserve,

and Bank of Canada...

-Richard?

Richard.

Richard?