Global financial system implosion begins

[kabbes]

The high value of Tesla stock is largely because it's a famous company with a publicity savvy CEO in an era when millions of people are making specific consumer choices about investing pension money - 401k or robin hood, etc. Tesla is a perfect mix of an understandable and visible product, prestigious and futuristic, and most importantly - number go up.

That’s how I see it too. I’m not a professional investor, though — clearly there is a view out there that its price is a bit more supportable than that. I’m not so convinced I’m right that I’m unwilling to consider the alternatives.

 

[Idaho]

That’s how I see it too. I’m not a professional investor, though — clearly there is a view out there that its price is a bit more supportable than that. I’m not so convinced I’m right that I’m unwilling to consider the alternatives.

It is possible for it to be both valuable and overvalued. Potential is a fickle thing when it comes to investments. There are ways to argue that X has stratospheric potential, and value it based on that... While at the same time potential is not a "real" thing that you can bash out in a factory and sell in a shop.

 

[kabbes]

It is possible for it to be both valuable and overvalued. Potential is a fickle thing when it comes to investments. There are ways to argue that X has stratospheric potential, and value it based on that... While at the same time potential is not a "real" thing that you can bash out in a factory and sell in a shop.

Yes, and I note that of the various US funds I have looked at, only one has Tesla visible in its top ten holdings. That means if the institutional investors are holding it at all, they are doing so typically with less than 2%. So as a whole they clearly aren’t willing to rely on that potential either.

 

[platinumsage]

Yes, and I note that of the various US funds I have looked at, only one has Tesla visible in its top ten holdings. That means if the institutional investors are holding it at all, they are doing so typically with less than 2%. So as a whole they clearly aren’t willing to rely on that potential either.

Baillie Gifford love them, and own 4% of Tesla as it's in lots of their funds e.g. Scottish Mortgage Trust is 10% Tesla. They've had to sell quite a bit across different funds to keep below the 10% limit for a single stock.

 

[kabbes]

Baillie Gifford love them, and own 4% of Tesla as it's in lots of their funds e.g. Scottish Mortgage Trust is 10% Tesla. They've had to sell quite a bit across different funds to keep below the 10% limit for a single stock.

Well so far, I guess you can’t say they have been wrong. The key, as ever, will not to still be holding the handrail when the bus drives off the cliff...

 

[ska invita]

Tesla is a perfect mix of an understandable and visible product, prestigious and futuristic, and most importantly - number go up*

* The past performance of any investment is not necessarily a guide to future performance. The value of investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The value of shares may rise as well as fall due to, and not just including, the volatility of world markets, interest rates, economic conditions/data and/or changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested.

 

[yield]

'Spend as much as you can,' IMF head urges governments worldwide

MOSCOW, Jan 15 (Reuters) - Policymakers worldwide should embrace more spending to help revive their stuttering economies, the head of the International Monetary Fund said on Friday at Russia's annual Gaidar economic forum.

Managing Director Kristalina Georgieva did not give any specific economic forecasts, but made clear her desire for governments to up their spending and that a synchronised approach internationally was best for growth.

In 2020, the IMF provided support to 83 countries, she said.

"In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: 'please spend'. Spend as much as you can and then spend a little bit more," Georgieva said.

"I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption," she said.

 

[platinumsage]

This is interesting. Implies the future has arrived early and the pandemic has boosted the perceived future earnings prospects for these companies.

 

[ska invita]

This is interesting. Implies the future has arrived early and the pandemic has boosted the perceived future earnings prospects for these companies.


View attachment 250284

thats got to be a bubble no? covid will pass soon

 

[Idaho]

thats got to be a bubble no? covid will pass soon

Surely if there is one thing the '20s has taught us, is that everything is a bubble.

 

[kabbes]

thats got to be a bubble no? covid will pass soon

Depends if office workers WFH for a year has permanently changed the nature of work and consequently the patterns of living and leisure. I would imagine that those buying into these tech companies are betting on current patterns just becoming even stronger in the future rather than receding post-COVID.

I don't know for sure, but I think tech indices like that one often include things like green energy and biotech companies too. I'm certainly betting that there will be some Google-sized companies coming out of those sectors at some point in the next 30 years. I wouldn't even begin to profess to guess which ones, though, or even if the final biotech Google even exists yet.

 

[not-bono-ever]

..

 

[not-bono-ever]

.

 

[Idaho]

The Wallstreetbets versus shorting hedge funds is pretty hilarious/bizarre/interesting. Two hedge funds have been forced to close their shorts at great expense due to coordinated pumping. Stock price has gone from $18 at the start of the year to... Currently... $368!

All for a troubled retailer that sells and buys/resells hard copy computer games at strip malls in America... A dwindling proposition.

 

[platinumsage]

Retailers are cancelling orders for physical silver made over the weekend:

Silver jumps 8%, touches 8 year high as Reddit traders try their squeeze play with the metal

The sharp move higher reflected the biggest move for silver futures since at least 2013 and extended gains for silver and silver-related equities last week.

www.cnbc.com

Lots of ramping going on by those with vested interests e.g.:



Those dipping their toes in for a fast buck are likely to lose as usual.

 

[platinumsage]

Anyway it's all nothing new:

The 1980 Silver Squeeze

 

[not-bono-ever]

Meh. Bubble madness

 

[not-bono-ever]

Been brought up earlier but BoE now likely to use -ve interest rates later this year. We are still fucked from 2008.

 

[Flavour]

Been brought up earlier but BoE now likely to use -ve interest rates later this year. We are still fucked from 2008.

this is massive if it happens

 

[ska invita]

this is massive if it happens

why do you think?

 

[platinumsage]

Been brought up earlier but BoE now likely to use -ve interest rates later this year. We are still fucked from 2008.

I think the fact that today they announced that banks could take six months over preparations was effectively punting the idea into the long grass for the short to medium term, i.e. if they weren’t needed sharpish then they won’t be needed until the next crisis. That seemed to be the view of bond and currency markets today anyway.

 

[kabbes]

A lot of euro rates have been negative for years. The world keeps on turning.

 

[Flavour]

why do you think?

cos the uk's never done it before and would be a historic admittance that the pound is in the shit

 

[not-bono-ever]

Economists and MBAs have had their day. New paradigm needed. Out of ideas

 

[not-bono-ever]

The BoE chucked this out to the banks, esp. CHAPS members for discussion in 2020 with a firm underlying tone of get this ready for ‘21 .

 

[Artaxerxes]

Pope shits in woods, bears Catholic

 

[ska invita]

Pope shits in woods, bears Catholic

Sounds like the LSE are advertising their services

 

[yield]

Bank governor takes responsibility for regulatory failings over LC&F scandal
Mon 8 Feb 2021

The governor of the Bank of England has told MPs that he takes responsibility for regulatory failings over the £237m London Capital & Finance investment scandal, and that he wished he could have spared the “suffering” of those who lost money.

Andrew Bailey, who was formerly the chief executive of the Financial Conduct Authority (FCA), also revealed that he did not know about LC&F “until pretty much the point it was closed down” by the City regulator.

Bailey, who took over as the Bank governor in March 2020, was being questioned by MPs a week after the head of an independent inquiry into the matter said the Treasury needed to consider whether Bailey should face “consequences” over the FCA’s failure to properly regulate the firm before it went under.

More than 11,600 people had invested a total of £237m when LC&F collapsed in January 2019. Its “mini-bonds” had promised returns to investors of up to 8% a year.

German regulator takes oversight of Greensill Capital as crisis deepens
Tue 2 Mar 2021

The crisis engulfing Greensill Capital, a controversial bank that employs former UK prime minister David Cameron, mounted on Tuesday night when it emerged that Germany’s financial watchdog has taken direct oversight of operations at a local subsidiary of the London-based lender.

The bank, which specialises in supply-chain finance where businesses borrow money to pay bills, was plunged into crisis on Monday when Credit Suisse suspended $10bn (£7.2bn) of funds linked to Greensill, warning that there were “considerable uncertainties” about the true value of the assets.

Swiss asset manager GAM Holdings on Tuesday said it was also closing its $842m GAM Greensill supply chain finance fund because of “market developments and resulting media coverage”.

Germany’s banking regulator BaFin has in recent weeks had a special representative working at Greensill Bank, a subsidiary lender based in the north-west town of Bremen. That person is reported to have taken day-to-day control of operations there, according to the Financial Times and Bloomberg. The regulator, which has been conducting an audit of the bank since autumn, declined to comment.

SoftBank-backed Greensill Capital is on the brink. 50,000 jobs could be at risk
CNN 03/03/21

Greensill Capital collapse shows City watchdog needs shake-up, say MPs
09/03/21

Light-touch regulation.

 

[CH1]

Bank governor takes responsibility for regulatory failings over LC&F scandal
Mon 8 Feb 2021




German regulator takes oversight of Greensill Capital as crisis deepens
Tue 2 Mar 2021




SoftBank-backed Greensill Capital is on the brink. 50,000 jobs could be at risk
CNN 03/03/21

Greensill Capital collapse shows City watchdog needs shake-up, say MPs
09/03/21

Light-touch regulation.

I'm surprised there's nothing much in main stream media about this. The latest Bloomberg article suggests its only a matter of time as Dudley Moore used to say on Dereck and Clive. An earlier detailed Bloomberg articl I read said that the NHS is hooked in

• Greensill apparently provide cahs-flow advances to small pharmacies
• Greensill also aparently provide an NHS recommended salary advance scheme for nurse etc.

How did an outfit like this infiltrate the NHS? The boss is basically an Australian farmer, but recently had to add a fourth executive plane to his fleet, so he can access his world-wide profit centres.

UK government is peculiarly myopic when it comes to prospective financial scandal. I remember having a coffee with Peter Walker - Tory Minister in the Heath government when he was held captive in the Manchester University student union canteen by SocSoc and SWP etc students he thought he had come to debate with.

His old firm Slater Walker went truly tits up only a couple of years later in 1974- no assets left to strip and no bak ;loans to prop them up.

Looks like Peter Walker and Lex Greensill share something. Neither had university education, but this did not did their charisma.

Who is Lex Greensill? The billionaire banker tied to GAM’s crisis

A former prime minister, a Swiss fund giant, a sacked fund manager and the Australian financier who links them all

www.fnlondon.com

Latest Bloomberg Greensill Capital Close to Collapse After Athene Calls Off Deal
this about the Greensill business model incl NHS and the Gupta Steel co is fascinating Credit Suisse Overruled Risk Managers on Greensill Loan

 

[yield]

I'm surprised there's nothing much in main stream media about this. The latest Bloomberg article suggests its only a matter of time as Dudley Moore used to say on Dereck and Clive. An earlier detailed Bloomberg articl I read said that the NHS is hooked in

• Greensill apparently provide cahs-flow advances to small pharmacies
• Greensill also aparently provide an NHS recommended salary advance scheme for nurse etc.

Bloomberg, Guardian and CNN are mainstream.

How did an outfit like this infiltrate the NHS? The boss is basically an Australian farmer, but recently had to add a fourth executive plane to his fleet, so he can access his world-wide profit centres.

"The crisis engulfing Greensill Capital, a controversial bank that employs former UK prime minister David Cameron"