This is Why They Naked Short................

Discussion in 'Wall St. News' started by flytiger, Oct 4, 2008.

  1. A while back I postulated that these short biased hedge funds manipulated their victims because first, the fees are so huge, they need to make the stocks crater instantly to make up for slippage, Prime Broker costs, etc. I also said Cohen and Loeb and those guys had no more talent than I. And now it seems, einhorn is admitting as much.

    I dare say anybody here with any brains, and that's a select bunch, knew what I knew. Refco at seven bucks was zero. Bear was bludgeoned to death, and when Fuld said he was next, he knew what he was talking about. But you see, when you run 10 billion, and you need returns for ego, whatever, you have to make events happen in your time frame, which is, NOW. When they take away those tools, naked shorting, Mommy losing her Barron's job, appearances on CNBC, reporter hack jobs, look what happens:

    Greenlight said its funds had large losses in its short positions in financial securities. While Greenlight did have a contribution from its bearish bet on Lehman, it said most of the gains were earned in previous quarters.
    "We believe that the changing rules on short-selling contributed to large losses for the partnerships on these (financial) names during the quarter," Greenlight said. It said that it did not view any of the financial names in its portfolio as potential bankruptcy candidates but rather as overvalued equities with fundamentally challenged business models. Greenlight's plan to "hold these positions for a good deal of time" suggests that the selling that plagued the financial sector only a few weeks ago is not over.
    Among the financial names Greenlight lost money on was an unnamed bond guarantor in which it had a small short position. "... We added to the position as it rose, creating additional losses as it rose even further. It is hard to see why this won't work well, as the company is essentially in runoff."


    http://www.forbes.com/2008/10/03/hedge-funds-tpg-greenlight-biz-wall-cz_ar_1003apologies_print.html

    Now, he gets to play our game. I'm wrong, but I can't be wrong. I'm going to average up. Now, with the huge redemptions he's going to take, he won't be able to hold those positions, just like you and me. It appears, from this, he doesn't know how to cut and run. He's about to learn, or disappear. And I"m for 'disappear".

    All I've ever been saying was , obey the law. I''m not saying Einhorn didn't - that's for the FEDS to decide. But I am saying a lot didn't, and they killed all of us. Because trying to make a living in this now will be like swimming with chains.