Selling Frenzy By Hedge Funds Hits Record, Offset By Surge In Buybacks
TYLER DURDEN, 04 May 2021
Two weeks ago, Bank of America warned that it had observed a sharp reversal to “increasingly euphoric sentiment” among its institutional, hedge fund and HNW clients, all of whom sold in the previous week even as stocks continued their grind higher. This happened around the time that Goldman’s Prime Brokerage had observed a startling streak as hedge funds sold stocks for 7 days out of 8, which prompted us to warn that a short squeeze was coming… we were right, because just a few days later the S&P was back at all time highs on – you guessed it – another whopping short squeeze. Continue reading “Article: Selling Frenzy By Hedge Funds Hits Record, Offset By Surge In Buybacks”
What The Boom In Fraud Says About The Current Market Environment, Part 2
TYLER DURDEN, 01 May 2021
Just about three months ago, I wrote a blog post which featured this quote, from Charles P. Kindleberger’s Manias, Panics and Crashes: “Swindles are a response to the appetite for wealth (or plain greed) stimulated by the boom.” Since then, the number of frauds, or swindles, that has been revealed has soared, a clear testament to both the breadth and degree of greed inspired by the current boom.
Most recently, we saw the collapse of Greensill Capital as the result of fraud. Like WireCard, Greensill was a relatively young finance company looking to disrupt its more mature competitors which took a few (illegal) short cuts in the process. Continue reading “Article: What The Boom In Fraud Says About The Current Market Environment, Part 2”
The Fall Of Turkey, The Rise Of Bitcoin
TYLER DURDEN, 26 April 2021
It never ceases to amaze me how tone deaf those with power are.
Turkish President Recep Tayyip Erdogan is in serious trouble for the first time in his political career. He’s a man staring at a massive electoral problem coming this fall.
Erdogan is currently presiding over an economy in complete freefall. With recent reports of food riots over government handouts of potatoes and onions the news only seems to be getting worse there on the eve of national elections. Continue reading “Article: The Fall Of Turkey, The Rise Of Bitcoin”
German Regulator Accuses Deutsche Bank Board Member Of Insider Trading Linked To Wirecard
TYLER DURDEN, 20 April 2021
For a minute there, it appeared that Credit Suisse might have snatched Deutsche Bank’s crown as the most dysfunctional bank in Europe as the Swiss lender struggled with the fallout from the Archegos blowup and the collapse of Greensill (a scandal that has set off a massive corruption scandal in the UK, and triggered renewed calls for regulatory reform in the European financial system). CS has announced billions of dollars worth of losses tied to the scandals, fired its head of risk and nearly half a dozen other senior employees, and taken other steps in an attempt at penance. But on Monday, Deutsche Bank, which seemingly can’t go more than couple of quarters without a scandal, has found itself in the headlines once again. Continue reading “Article: German Regulator Accuses Deutsche Bank Board Member Of Insider Trading Linked To Wirecard”
Meet The Tiny California Town “Full Of Dirt” That Snagged Elon Musk’s Boring Company
TYLER DURDEN, 20 April 2021
Elon Musk is taking his Boring Company circus on the road to Adelanto, California.
Adelanto is a town of 37,000 where the mayor, Gabriel Reyes, works part time and the city manager, Jessie Flores, is the full time chief executive of the city, according to a recent Bloomberg report.
The county supervisor mentioned to Flores recently that Musk’s Boring Company was looking for a place to practice digging tunnels, so Flores reached out. “Steve, we’re the ones you’re looking for. When can we meet?,” Flores texted Boring’s President Steve Davis. Flores suggested meeting at SpaceX’s headquarters, which was about 2 hours away from Adelanto. Continue reading “Article: Meet The Tiny California Town “Full Of Dirt” That Snagged Elon Musk’s Boring Company”
Gary Gensler is now head of the SEC. What comes next?
TYLER DURDEN, 19 April 2021
Apparently, firing half a dozen executives including its head of risk management (Lara Warner, also one of the most high-ranking women in the global financial services industry) hasn’t done enough to quiet shareholders’ demands for change atop Credit Suisse, the Swiss banking giant that reported a $4.7 billion loss from the collapse of Archegos Capital Management, with billions of losses likely to follow from the collapse for Greensill.
As CEO Thomas Gottstein clings to his position, the Wall Street Journal reported Monday that John Dabbs and Ryan Nelson will immediately step down as co-heads of prime services, the prime-brokerage unit responsible for extending all that credit to Archegos (as a reminder, for an explainer on how Archegos built its $100 billion massively leveraged position. Continue reading “Article: Credit Suisse Prime Brokerage Heads Fired Over Archegos Blowup”
US Financial Markets Have Become A Giant Mirage Built On A Foundation Of Fraud
TYLER DURDEN, 17 April 2021
Would you pay more than 100 million dollars for a single deli in rural New Jersey that had less than $36,000 in sales during the last two years combined? I know that sounds like a completely ridiculous question, but the stock market apparently thinks that deli is worth that much. On Thursday, the Dow Jones Industrial Average closed above 34,000 for the first time in history, and investors all over the country cheered. But this financial bubble is not real. It is a giant mirage that is built on a foundation of fraud. Continue reading “Article: US Financial Markets Have Become A Giant Mirage Built On A Foundation Of Fraud”
Is China Preparing A Gold-Backed Yuan: Beijing Greenlights Purchases Of Billions In Bullion
TYLER DURDEN, 16 April 2021
In 2018, the Chinese launched a gold-backed, yuan-denominated oil futures contract. These contracts were priced in yuan, but convertible to gold, raising the prospect that “the rise of the petroyuan could be the death blow for the dollar.”
Two weeks ago, The IMF reported that the global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF’s COFER data released today. This matched the 25-year low of 1995. Continue reading “Article: Is China Preparing A Gold-Backed Yuan: Beijing Greenlights Purchases Of Billions In Bullion”
BLM Threatens Legal Action Against One Of Their Own Activists After Call For Probe Into Finances
TYLER DURDEN, 15 April 2021
As we highlighted yesterday, Hawk Newsome, who heads up a Black Lives Matter group in Greater New York City, made the call for an investigation, telling the New York Post “If you go around calling yourself a socialist, you have to ask how much of her own personal money is going to charitable causes.”
Newsome said “black firms and black accountants” should conduct an audit on BLM Global Network Foundation to “find out where the money is going.”
“It’s really sad because it makes people doubt the validity of the movement and overlook the fact that it’s the people that carry this movement,” Newsome added. Continue reading “Article: BLM Threatens Legal Action Against One Of Their Own Activists After Call For Probe Into Finances”
Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely”
TYLER DURDEN, 15 April 2021
In many ways, David Einhorn’s Greenlight appears to be back to its “new normal” – in a letter sent to investors, Einhorn writes that Greenlight again underperformed the market and returned -0.1% in the first quarter, badly underperforming the 6.2% return for the S&P 500 index, before proceeding to bash the Fed, broken markets, Chamath and Elon, the basket of short stocks and much more.
That said, even though as Einhorn writes Greenlight made only a handful of portfolio changes and essentially broke even, “a lot happened. In general, the investment environment – especially from mid-February through the end of the quarter – was favorable as value outperformed growth, and interest rates and inflation expectations rose.” Continue reading “Article: Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely””
BoJo Launches Investigation Into Cameron’s Lobbying On Behalf Of Greensill
TYLER DURDEN, 13 April 2021
For British PM Boris Johnson, the fallout from the collapse of Greensill has been akin to being gifted a golden saucer filled with excrement. At the time, BoJo apparently didn’t see anything wrong with facilitating the lobbying objectives of one of his predecessors, former PM David Cameron. But now that the British tabloid press has sicced the hounds on the PM, he has apparently realized it’s time for some damage control.
To wit, the FT reports that Downing Street and the Cabinet Office have launched a wide-ranging investigation after acknowledging that there was “significant interest in this matter.” Continue reading “Article: BoJo Launches Investigation Into Cameron’s Lobbying On Behalf Of Greensill”
Financial Tyranny: Footing The Tax Bill For The Government’s Fiscal Insanity
TYLER DURDEN, 09 April 2021
“We are now speeding down the road of wasteful spending and debt, and unless we can escape we will be smashed in inflation.”- Herbert Hoover
We’re not living the American dream. We’re living a financial nightmare.. Continue reading “Article: Financial Tyranny: Footing The Tax Bill For The Government’s Fiscal Insanity”
BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm
TYLER DURDEN, 09 April 2021
Earlier, several financial media outlets reported that Credit Suisse was considering dramatically shrinking or selling off its prime brokerage unit, the hedge-fund-focused business that just lost $4.7 billion for the bank, obliterating 18 months of the bank’s average net profits.
But in the last few hours, the focus has shifted to the bank’s asset management unit, amid reports that several American firms might be interested in making a bid, even as the bank has yet to release the final tally of expected losses from the Greensill debacle. Continue reading “Article: BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm”
LA-Based Actor Charged With Running $227 Million Ponzi Scheme
TYLER DURDEN, 08 April 2021
Zachary Horwitz, a little known LA-based actor, has been arrested by the FBI this week and was charged with running “an enormous ponzi scheme” wherein he represented that he had a successful film distribution company.
The reality was that the actor – who has had some roles in small films – was cheating his investors out of $227 million and using most of the money to fund his own lifestyle, according to the NY Post. Horwitz also “used investor funds to pay in cash for a $5.7 million home in Los Angeles’s Beverlywood neighborhood,” the Wall Street Journal added. Continue reading “Article: LA-Based Actor Charged With Running $227 Million Ponzi Scheme”