Nobody knows for sure who was in the position that blew up. However, one thing is for sure is that price manipulation to the upside is celebrated like it is some great thing, while price manipulation to the downside is considered evil and reprehensible. Get real.
Europe bans shorting financials after their close, we do same after hours. EU bails out banks, we do same. German Govt and Porsche 'conspire', w/i the law over there, mind you, to punish hedgefunds. Get it? See where we're going? Most of you don't want to admit what scum a lot of these thugs are, but I know the stories, the behind the scene threats and innuendo they use. The 'passing out money' tactics they use to get their way. What ever. But where we are now is, guys like Dodd, Schumer, you name 'em, if they are in the NE or head a financial commitee, they are suspect, took the dough. And there is one good way to get rid of the evidence. Couldn't happen to a nicer bunch. I can only hope, on the way to the gallows, they yak it up with the Feds. You will see this in the States next.
When (and if) Volkswagen shares will be delisted? If they aren't going to be delisted, is it possible to short it now, buy a put or sell an SSF? Is there are any other cornered stocks in the recent history. This is not just short squeze, it's a cornering, like it was in the old times in America. thanks
Rumour in Frankfurt is that the Jerry government , who btw own a big chunk of VW, were leaking info and dropping hints to some auto analysts in early Oct. about the possibility of a''mexican style stand off '' develping between hedgies and Porsche... Make your own minds up.
The Porsche-Veedub thing was rumored at least six months ago. Anybody who got caught has only themselves to blame. IMO etc.
Porsche¡¯s innocence or guilt is not the question here. There would be riots in Europe if the courts for some reason found in favor of the hedge funds and broke those trades. Even if Bafin did find Porsche guilty of breaking the rules, Porsche will be treated like a hedge fund and basically get slapped on the wrists with a token fine. The morality of SAC is not the issue either. Who cares if SAC is good or bad? There is nothing anyone can do about it anyways. But the losses on the Volkswagen trade are real and unaffected by relativistic judgments. It is extremely stupid to get caught in a short squeeze but in the Volkswagen case it was also extremely painful. SAC and Greenlight could each have taken maybe US$5-10 billion in losses from Volkswagen alone. The thing about being short is that your losses are potentially unlimited. With such losses, you can guess at one reason why Steve is looking to raise more money. Smart investors will want to see a monthly balance sheet for 2008 up to October or even November before committing capital in January. We will get to find out just how bad this episode was for SAC when they start canvassing for funds.
I heard 50 billion in losses for SAC, maybe 1 trillion. Nah, I read some analysis that claimed maybe 6 billion in total for all the losses, but who knows.