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January 29, 2021

Hedge Fund Manager Claims Victim Status; Claims "We Have to Work Together and Pull Together"

UPDATE! Via Tami, the Uniparty has decided to investigate these troublemaking likely-Nazis!!!

@disclosetv 15m

NEW - Elizabeth Warren (D-MA) sent a letter to the SEC asking them to investigate Reddit and social media posts.

https://tinyurl.com/y4jzpksz

(Gab link)

Back to main post about the whining hedge fund manager:

Weirdest thing: they're all in favor of radical libertarian individualism and red-in-tooth-and-claw absolute capitalism when they're fleecing you of your money, but when they're losing money -- as they did in 2007-2008-- suddenly they're in favor of socialized risk, government bailouts, and "working together and pulling together."

When they win their bets, they're archcapitalists, but when they lose, well, now we have to work together and distribute the losses fairly.

Is there anyone who doubts we're going to have another TARP bailout within three months?

It's estimated that the hedge funds have lost $70 billion in the short selling this year so far. (Note this includes many more stocks than the GameStop, AME, and Nokkia stocks we're talking about lately.)

Short-sellers are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies so far this year, data from financial data analytics firm Ortex showed on Thursday.

The hefty losses come as shares of highly-shorted GameStop jumped more than 1,000% in the past week without a clear business reason, forcing short-sellers to buy back into the stock to cover potential losses -- defined as a short-squeeze -- while retail investors then piled in to benefit from the surge.

Chasing shorted companies became a trend among retail traders, rippling across U.S. markets and Europe. Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.

Do not doubt that the bailout is coming. You gotz to know it's coming.

Their profits are private, their losses are socialized.

And you know exactly the politicians, in the Democrat Party and in the corrupt GOP as well, who will championing the bailout.

Will Mitt Rombley take a lead role in explaining to you that you're really saving your own money by transferring trillions of taxpayer dollars into private hands? Or will he just write the script for Mr. Sanctimony-and-Snark Ben Sasse to read?

Below, this asshole whining, and then after that, a lesson I learned in the crisis of 2007-2008.


Wait, so now we're all in on this together?

Say, the Capital Class probably got richer by a half trillion dollars or more during this lockdown, while most people lost money.

Will we be dividing that up between us?

Or are you guys keeping that for yourselves?

When Bush proposed the TARP bailout, I supported it, because, back then, I was an idiot neocon authoritarian who believed all the bullshit those higher in the hierarchy told me.

I expected that all the commenters would likewise support it, and was surprised to find most didn't.

So, to get some insight into this problem, I turned to my friend, who was in risk management at a major, major institutional investor.

I expected him to support TARP, because he was part of that world.

I was shocked that when I asked him if he supported TARP, he said flatly: "No."

I'm going to write up my conversation with quotations, but of course, this was 13 years ago and so the actual quotes are reconstructions. But this is very much the gist of what he said.

Because when someone you know has some knowledge in an area says the exact opposite of what you expected, you pay close attention.

"Why don't you support it?" I asked.

"Look, I've been in the room with these guys, the guys who make trades for institutional investors, when they screw up and lose hundreds of millions of dollars. And I can tell you, these guys live very risky lives. And when their risky moves blow up in their faces, they're very, very good at explaining why this is really mostly your fault, and why we're all in this together, and why it's really in your best interests to bail them out."

"Wait," I said. "These guys court risk? I thought they'd be risk adverse, being institutional investors?"

"No. They're cowboys."

"The companies don't know they're cowboys?"

"They know they're cowboys. They specifically seek out people who make risky choices. They want these people to be as aggressive as possible in their bets. If you're in an interview for one of these jobs, and you tell them about a trip to Vegas two months ago where you had $50,000 in play at three craps tables at the same time, they'd count that in your favor. It would show you had the gambling, swaggering nature they're looking for."

Then he explained that because these guys were constantly living on the edge -- and of course, frequently losing very big bets -- they had developed the skill of manipulating other people to cover their losses for them, or to excuse their losses.

He repeated: "These guys are very good at convincing you that it's in your best interest to cover their losses. That somehow, if you don't cover their losses, you'll be the one who winds up getting hurt the worst. I hear this bullshit that we have to give these people trillions of dollars to 'save the economy' and keeps the banks open, and it reminds me of a dozen meetings I've had with investment bankers who'd cost us a hundred million dollars patiently explaining why we their bonus shouldn't be reduced. Because, really, aren't we all just one big team? And don't we all win and lose as a team?"

That was an eye-opener.

No, I have no problem with anyone electing an aggressively risky investment strategy.

But I have a very big problem when these Risk-Courting Cowboys keep losing their bets and then come to the American taxpayer to tell us that it's in our best interest to give the a trillion dollars to cover their losses.

Their profits are capitalized; their losses are socialized.

Every single fucking time.

Bet as aggressively as you like.

But stop telling me that your losses are my problem.

And if you don't think they're working on TARP 2.0 right now -- and that China Joe isn't going to sign it, and read a prepared speech about why giving these people trillions will trickle-down to benefit us -- well, you're living in a dream-world.

I would note that sociopaths have two primary personality markers: they are extremely comfortable with taking big, brazen risks in their lives, and they are very skilled manipulators.

Now, I'm not saying these guys are sociopaths. (I'm also not saying they're not sociopaths.)

But what I am saying is that anyone who courts very big risks every day of his life will very naturally evolve the skill of explaining to other people why you should treat their bad fortune as your bad fortune.

If they didn't evolve the skill of explaining why you should cover their losses and excuse their risky lifestyles, they wouldn't survive long. Manipulating others to get out of jams they caused themselves is a survival skill for these people, whether actual sociopaths or not.

One more point: these people have been planting stories in leftwing outlets like The Guardian that the WSB group is filled with Nazis.

This is not some innocent misunderstanding.

They are laying the groundwork for declaring the people who beat them to be Domestic Economic Terrorists and be arrested.

And for the government to offer these Domestic Economic Terrorists a lighter sentence -- if they give back the money they legally won from these criminals.

It was that predicate, that these are "Nazis," that got the Discord shut down, demolishing the communications among the WSB guys. It was this sort of pressure, I'm sure, that got all the day-trading firms to crack down on this Nazi trading.

Unfortunately, these guys are about to be branded and arrested for Nazi Day Trading practices -- all so the guys who fleece us every fucking day can get their money back.

Update: We've had our first #MuhRussians sighting -- an MSNBC analyst suggested that we needed to "subpeona" the Redditors because they might be acting at the behest of "foreign powers."

Literally: Any time the Establishment does not like you, it will call you a conspiracy theorist, a white supremacist, and an agent of Russia.

They pay no price, neither in loss of money nor in loss of reputation, for these constant, lunatic, self-serving, delusional, vicious defamations.

And at 7:45, the corporate media goes to its go-to: The fat bastard on CNBC demands MOAR CENSORSHIP to keep these hobbits from communicating on social media.

It's literally their first go-to move now. "CENSOR THEM!"

One more thing: RobinhoodApp, which will certainly be facing Congressional and DOJ probes due to its decision to come to its Cartel-Partners' aid and shut down trading in GameSpot, is now accepting job applications for a flack.

@DaybookJobs


Job Opportunity!

Robinhood seeks a Federal Affairs Manager based in Washington D.C. to focus on federal advocacy and government affairs related to legislative and regulatory matters.
@RobinhoodApp

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posted by Ace at 12:10 PM

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