@@Jacquellynnn You are right liquidating assets so that inflation can dwindle at it while they are in jail is better. Out with the druggies in with the crooky business men. Love that! The jailers will be paid and not tell the difference. An addict is addict!
Lots and lots and lots and their all gunna get margin called and every stock is gunna take a massive hit besides the ones they shorted the living daylights out of. Can you say market correction?
As long as these complex unregulated derivative contracts exist, a lot of these large "under the table" positions will still happen. Have someone in Congress who understands these and can regulate them and the game changes. Not getting hopes up though
Sure, now that the cows have left, let’s close the barn door with more regulations that people don’t follow. How about trying some serious prison time for these crooks?
@@rainydays999 Indeed. Myself included, and I haven’t been on vacation in over 2 years. Actually, it’s been at least 3-4 years. I don’t go around whining about it. I’m grateful for what I do have. It’s more than I deserve.
Im mostly cash... This is gonna get ugly quickly... You have to understand those dollars are now gone. I'm sure this dudes funds are all gone. Or should I say customer funds...
They don't the 'derivative is only a symbolic rep of the asset. The banks don't ask what the heck they are leveraging against because they dont have to. This is going to cascade. He isn't the only one doing this.
their not wrong, its not the virus that is affecting our lives, its the government. Without the government doing crap like this we wouldnt be locked in our houses or in this mess in the economy.
I didn't hear CNBC mention SEC should step in, regulation is needed. N this is a "fascinating" "opaque" story for you guys. That is why in CNBC we no trust. Go back to picking on $GME
It’s a zero sum game. The money does not vanish. It changes hands. This could be one of those rare moments in history where we’re witnessing the greatest inter-class wealth transfer. Get $NAKD: It’s the next big short squeeze everyone is talking about !!! Short interest is almost 488% of float. What on earth are you thinking if you’re not already in? 🚀🚀🚀
Archegos had huge positions in Viacomcbs stocks (and others). How they mange to buy so much was by borrowing (or leveraging) from the banks. Basically, the bank agrees to buy X amount of shares on behalf of Archegos, in return for a fee (called margins). From the outlook, the banks are the owners of those stocks. Thus, the banks had no idea that so much of these stocks were actually held by Archegos. Ideally, the margins that Archegos have put up should be higher than what has been lost in the stock market that the bank held. This protects the bank from Archegos potentially defaulting on the losses. When some of the Chinese stocks that Archegos have leveraged fell, these banks asked Archegos to post more margin (essentially money/ collateral) to maintain its position in those stocks. When Archegos didn’t, the bank sold those stocks to protect themselves. In the meantime, early this year, Viacomcbs stocks went up from $40+ to $100+ in 2 months (probably due to Archegos’ massive buying), and thought that their stocks were in high demand. They decided to offer more shares to the public at $80-$100 in order to raise money for their streaming contents. They misjudged the market’s appetite for those shares and diluted its price, hence the stock price fell. This has spooked the banks which held large amount of Viacomcbs stocks (like billions of dollars) on behalf of Archegos, and they asked Archegos to put up margins for those losses/ exposure. When Archegos failed to do so, the banks sold those shares in masses. Two banks declared that Archegos defaulted and sold the stocks. This triggered a massive selloff as other banks also sold the stocks that they have held for Archegos in panic. The sudden flood of shares in the market had caused Viacomcbs stocks to fall about 50%, and it’s now back to $40+. Those banks that had sold first probably made some money or managed to cover the losses. And the banks that were late to the selloff (like Credit Suisse and Nomura) posted huge losses. This, in turn, caused the share prices of those banks to fall.
First, all those people poring into financials because bank stocks were a great value? Next, all those investments associated with the leverage and dependant on it will find the taps being closed off. How far will it go? Too big to fail immediately comes to mind. Last? It's always the poor sap taxpayers?
Lol. Different day, same old leverage run.... Thus movie nevers gets old. Hwang overreached since he operates a family office so much less compliance guard rails.
Andy Mills is chairman of Archegos Capital and Peter Philbrick is director of business development. Why would family owned fund need director of business development to attract more fund. There are lot of illegal stuff going on around this company thus SEC should investigate by confiscate their materials before they destroy all the evidence. Since all of people worked at Archegos Capital was heavily involved with church, it's very likely that they had rich pastor families assets under their management and not declared at SEC. Victims will unlikely come out in public due to embarrassment being head of church. There are tax fraud and SEC fraud all over this company. Bill Hwang also likes to brag about his church involvement during meetings which I hate selling God to raise fund for his gambling habit. US SEC and S Korean SPO should work together for this investigation. Since 2010, both law enforcement can share data without going thru an embassy.
Nothing will ever change as long as funny money is being created and instead of funding real productive assets, projects, scientific and technological advancements that bring around solid jobs and increased prosperity, is instead lent around to mediocre clowns who bet the house until they go belly up! Why can't we criminalize such behavior and send these people to rot in jail for some time to teach them a lesson in speculation??
Palantir could have avoided this, linked all those credit swaps and high leveraged bets / swap agreements linked to one person and many banks linked to one trade.
Not systemic? lmao. You just wait. The only game in town are these offerings being pushed. These hedge funds own many of them. This guy owned 10% of viacom...
'Very strange Block trades' lol It's all such a mystery! lol How was this allowed to happen... lol No way!... Swap agreements all across Wall Street... No Way! ... lol It's not like there is software that can track data and numbers... It's all magic! Gosh he didn't listen to the rules and just made these deals. And we all know that software can't track any of this because its so complicated to write such software...lol A 12 year old could write software to track this.... lol We all know that none of this matters... fresh money gets minted and everyone involved is made whole... oh but WallstreeBets sub-Reddit humans acting on publicly available data need to be regulated for sure!
