Crypto Two

[MinnesotaEric]

Apparently the Crypto thread got deleted.

I don't understand the hostility toward crypto. If you don't like the investment idea then don't follow it with your money.

Buy treasuries and build out bond ladders instead but be careful as many think that at least 6% will be the new basis going forward for a very long time.

Or buy value when things drop further and PE ratios sag to the point where solid companies are trading below 6 to 1 as 2023 is anticipated to usher in one hell of a recession which should freak out the investor class into risking off to cash positions and selling!

Think crypto is a ponzi scheme, then put your money where your mouth is and short the hell out it.

I already posted a video on the method of shorting bonds, well crypto works the same way so, call your I-banker and tell them I'd like to take a short position in bitlesscoin with a default swap and make videos to send to your fellow traders and investors taunting them and especially after you've covered your short position, and gone long!

Or for that matter find any asset class or company that has only been able to exist on low interest loans that are all but dried up these days or from over speculation caused by the fear of missing out. Such targets deserve to be shorted because they are over-leveraged, unaware of what their leverage exposure is, or no plausible reason can be found why the asset's price will continue to increase over the next 24 months. Back in the Great Recession the shorting plan worked like this:

1) Find an institution that is in trouble or so convoluted that it doesn't know what assets it owns.
2) Take a heavy short position with CDSs.
3) Short the common stock.
4) Watch the credit rating downgrade wipe out liquidity effectively freezing the company.
5) And the treasury to step in and wipeout shareholder value.
6) Reap hordes of money covering cheaply.
7) Reap more money collecting money on the wiped out CDS.
8) Find a new target of opportunity like the idiot who sold you the CDS, like AIG or something.
9) Rinse and repeat all the while knowing that no bulls will stand in your way because they lack the confidence to do so.
10) Welcome to one of the greatest short-side momentum markets ever known.

 

[Snobdds]

I asked how /pine could get more osmosis time and...boom it's gone.

 

[/pine]

Apparently the Crypto thread got deleted.

I don't understand the hostility toward crypto. If you don't like the investment idea then don't follow it with your money.

Buy treasuries and build out bond ladders instead but be careful as many think that at least 6% will be the new basis going forward for a very long time.

Or buy value when things drop further and PE ratios sag to the point where solid companies are trading below 6 to 1 as 2023 is anticipated to usher in one hell of a recession which should freak out the investor class into risking off to cash positions and selling!

Think crypto is a ponzi scheme, then put your money where your mouth is and short the hell out it.

I already posted a video on the method of shorting bonds, well crypto works the same way so, call your I-banker and tell them I'd like to take a short position in bitlesscoin with a default swap and make videos to send to your fellow traders and investors taunting them and especially after you've covered your short position, and gone long!

Or for that matter find any asset class or company that has only been able to exist on low interest loans that are all but dried up these days or from over speculation caused by the fear of missing out. Such targets deserve to be shorted because they are over-leveraged, unaware of what their leverage exposure is, or no plausible reason can be found why the asset's price will continue to increase over the next 24 months. Back in the Great Recession the shorting plan worked like this:

1) Find an institution that is in trouble or so convoluted that it doesn't know what assets it owns.
2) Take a heavy short position with CDSs.
3) Short the common stock.
4) Watch the credit rating downgrade wipe out liquidity effectively freezing the company.
5) And the treasury to step in and wipeout shareholder value.
6) Reap hordes of money covering cheaply.
7) Reap more money collecting money on the wiped out CDS.
8) Find a new target of opportunity like the idiot who sold you the CDS, like AIG or something.
9) Rinse and repeat all the while knowing that no bulls will stand in your way because they lack the confidence to do so.
10) Welcome to one of the greatest short-side momentum markets ever known.

Just curious...Are there that many shares in street accounts that can be had for retail shorting?

 

[Snobdds]

Just curious...Are there that many shares in street accounts that can be had for retail shorting?

Dude...

 

[MinnesotaEric]

I asked how /pine could get more osmosis time and...boom it's gone.

I've tried getting more osmosis time. But then my nature got the better of me and I asked, "Why?" Asking the local overlords, "Why?" is very bad and has always led me into trouble when I was in school.

"Why are we getting assigned this busy work?, I asked. If I wanted to learn, I'd go to a library, I took this class because of all the hotties."

Never worked out well for me, see. Smile.

 

[MinnesotaEric]

Just curious...Are there that many shares in street accounts that can be had for retail shorting?

You don't need the shares. You can spot price the swap so long as you can find an investment banker to write the swap for you.

 

[Avenger]

I don't get the hostility either. People get emotional about things I guess.

 

[California]

You don't need the shares. You can spot price the swap so long as you can find an investment banker to write the swap for you.

And that's where the FTX sudden evaporation may still lead to a cascading domino of broker failures. Apparently some naked shorts were relying on obtaining shares from FTX if they needed to cover. Poof. Nothing there.

I've been following this from the outside, watching the Gamestop Circus. Apparently short interest vastly exceeds the real number of actual shares issued by gameStop, and the kids on Reddit have been buying and direct-registering to dry up the number of shares in brokers' hands, available for the shorts to claim as collateral. I'm not gambling on this but I am interested in following how the various twists and turns reveal how share price is unrelated to listed daily transactions, because most of the volume occurs between brokers in the dark of night - inaccessible to the retail investor and price unknown. Lots of smoke & mirrors. May you live in interesting times ....

 

[wawajake]

I will give my defense of my push back and negativity on it........by using various life examples in the past 3 decades, ......the normalization of pot smoking, or abortion or gay life style, all required the lowering of our benchmarks between whats good for society and whats harmful. So a monetary system without a backbone of tangible backing and rules written on the fly, lowers the benchmark for everyone as to scruples expected in even the old reliable monetary system.

 

[MinnesotaEric]

And that's where the FTX sudden evaporation may still lead to a cascading domino of broker failures. Apparently some naked shorts were relying on obtaining shares from FTX if they needed to cover. Poof. Nothing there.

I've been following this from the outside, watching the Gamestop Circus. Apparently short interest vastly exceeds the real number of actual shares issued by gameStop, and the kids on Reddit have been buying and direct-registering to dry up the number of shares in brokers' hands, available for the shorts to claim as collateral. I'm not gambling on this but I am interested in following how the various twists and turns reveal how share price is unrelated to listed daily transactions, because most of the volume occurs between brokers in the dark of night - inaccessible to the retail investor and price unknown. Lots of smoke & mirrors. May you live in interesting times ....

You don’t need to cover the short if you’re using a swap. You’re taking out insurance (like a put) on a spot price for a reoccurring fee.