Margin Call 2

[AtW]

It’s happening, again...

”Throughout the day equity sales traders at Goldman and its rival Morgan Stanley hammered the phones as they tried to move billions of dollars of stock. Shares in US companies such as Discovery as well as online retailers Shopify and Farfetch were offered out, wiping billions of dollars off valuations. The sales were executed in five blocks. After the initial $6.6bn round, Goldman followed with another $2.3bn in the afternoon and $1.7bn worth of ViacomCBS shares. Morgan Stanley sold $4bn worth of shares earlier in the day, followed by another $4bn batch in the afternoon. Morgan Stanley initially allowed investors to choose their allocations of individual stocks, but later moved to an “all-or-nothing” offering where traders would buy an entire basket of securities, two sources familiar with the process said.”

https://www.ft.com/content/1b9119b2-...2-d10a021cd71b


Like in the movie... https://youtube.com/watch?v=3nlQWRjBzcE

[Fraidycat]

"Fat cats and starving dogs"

This latest US stock market bubble was always going to pop at some point.

And this one seems to be an even bigger stock market bubble than the one we saw in 2000.

[Fraidycat]

Apparently it was some fund called Tiger Cub Archegos Capital Management LLC that got the margin call.

Goldman and Morgan Stanley got out first, (liquidated the positions that fund held with them with a fire sale)

Looks like Nomura and Credit Suisse got left holding the bag and have significant losses:

https://www.theguardian.com/business...-business-live


That is some major cut throat action between the Investment Banks on public display. Im sure that kind of things goes on all the time behind the scenes on a smaller scale. But this looks too big to be hidden.

Reminds me of another line in the Margin call film, when refering to the bank they work for: 'They do not lose money. They dont mind if everyone else does. They dont lose'

Said in another clip from movie: https://www.youtube.com/watch?v=xW1CrQu_H6E

[AtW]

""Credit Suisse: US-based hedge fund defaulted on margin calls"



I was right, as usual!

""Archegos is a “family office,” which manages the private wealth of hedge fund manager Bill Hwang.

Could not have happened to a better guy...

[AtW]

Them were dirty shorters

[AtW]

Them were dirty shorters

Oh err...

"1. The catalyst was ViacomCBS, which did a $3 billion stock offering through Morgan Stanley and J.P. Morgan earlier in the week that fell apart. It resulted in massive selling. This fund [Archegos] was long a lot of ViacomCBS using a lot of leverage."

Still - lots of leverage, same kind of scum.

[Andy2]

They have literally learnt nothing. Soon it will 2008 all over again. Blowing up real estate and stocks bubbles will burst by next year. Hedge funds are using too much leverage to maximise profits.

[TwoWolves]

They have literally learnt nothing. Soon it will 2008 all over again. Blowing up real estate and stocks bubbles will burst by next year. Hedge funds are using too much leverage to maximise profits.

Everybody wants Alpha, baby. Interest rates effectively negative for a year.

[Fraidycat]

They have literally learnt nothing. Soon it will 2008 all over again. Blowing up real estate and stocks bubbles will burst by next year. Hedge funds are using too much leverage to maximise profits.

"Fat cats and starving dogs"

"1637, 1797, 1819, 1837, 1857, 1884, 1901, 1907, 1929, 1937, 1974, and 1987, 1992, 1997, 2000, 2008.."

[AtW]

Only safe heaven is in AMD shares and luxury bedsits over kebab shops in Bham, this is not a financial advice!