Go Back   EcoModder Forum > Off-Topic > The Lounge
Register Now
 Register Now
 


Reply  Post New Thread
 
Submit Tools LinkBack Thread Tools
Old 01-29-2021, 07:08 AM   #21 (permalink)
Rat Racer
 
Fat Charlie's Avatar
 
Join Date: May 2011
Location: Route 16
Posts: 4,136

Al the Third, year four - '13 Honda Fit Base
Team Honda
90 day: 42.9 mpg (US)
Thanks: 1,757
Thanked 1,908 Times in 1,238 Posts
Quote:
Originally Posted by ME_Andy View Post
I'm curious if anybody can even think of a single good reason to have options and derivatives.
Something to do with efficiently allocating capital to... Oh, wait, it's a parasitic way to make money from people who are trying to allocate capital efficiently while distorting and risking the whole system. Sorry, my bad.

__________________

Quote:
Originally Posted by sheepdog44 View Post
Transmission type Efficiency
Manual neutral engine off.100% @MPG <----- Fun Fact.
Manual 1:1 gear ratio .......98%
CVT belt ............................88%
Automatic .........................86%

  Reply With Quote
The Following 2 Users Say Thank You to Fat Charlie For This Useful Post:
ME_Andy (01-29-2021), Piotrsko (01-29-2021)
Alt Today
Popular topics

Other popular topics in this forum...

   
Old 01-29-2021, 07:14 AM   #22 (permalink)
Rat Racer
 
Fat Charlie's Avatar
 
Join Date: May 2011
Location: Route 16
Posts: 4,136

Al the Third, year four - '13 Honda Fit Base
Team Honda
90 day: 42.9 mpg (US)
Thanks: 1,757
Thanked 1,908 Times in 1,238 Posts
Quote:
Originally Posted by JSH View Post
I've never heard Musk come out against people that take a long position in Tesla - just those that take the short position.
Actually, it's one of his most common tweets: Elon Musk Says Tesla Share Price Is Too High

If you could time his tweets, you'd be the short selling king. But he does a great job building the company, which is the real long position.
__________________

Quote:
Originally Posted by sheepdog44 View Post
Transmission type Efficiency
Manual neutral engine off.100% @MPG <----- Fun Fact.
Manual 1:1 gear ratio .......98%
CVT belt ............................88%
Automatic .........................86%

  Reply With Quote
The Following User Says Thank You to Fat Charlie For This Useful Post:
Xist (01-31-2021)
Old 01-29-2021, 08:30 AM   #23 (permalink)
home of the odd vehicles
 
rmay635703's Avatar
 
Join Date: Jun 2008
Location: Somewhere in WI
Posts: 3,358

Silver - '10 Chevy Cobalt XFE
Thanks: 361
Thanked 673 Times in 504 Posts
Quote:
Originally Posted by Fat Charlie View Post
I'm a big fan of stocks, of owning shares in a company or in a mutual fund. I'm fine with speculation too.

But the last paragraph of this article has a very important bit of information:


So for every GameStop share out there, 2.6 shares were sold short. What kind of a system, what kind of government-regulated system, lets there be 2.6 shares sold short for every one share that .
Speculation by its nature WILL ALWAYS lead to fraud.

That is why made up games of short selling and derivatives rationally by their nature arent possible to regulate consistently or fruitfully

Its similar to why glass segal existed , yet we thought we knew better and in short order have had 2 massive economy tearing events in 10 years with another forming 10 years later.

The non-sense in housing right now would have never been possible under glass segal and the government just pouring money at rates unseen to prevent 1999/2009 will only create a larger disparity and crash down the road.

Large swaths of the countries homes/apartments are being bought by a couple bailed out companies which should strike fear in anyone with a brain.
  Reply With Quote
Old 01-29-2021, 10:06 AM   #24 (permalink)
Growin a stash
 
Join Date: Jun 2014
Location: Austin TX
Posts: 642
Thanks: 360
Thanked 228 Times in 172 Posts
Quote:
Originally Posted by JSH View Post
When you short a shock you borrow the shares, sell them, with a contractual agreement to replace those shares within a specific time. However, the person you sold the shares to can also loan them to someone else, who loans them to someone else....
That makes sense. Thanks.

Again, 260% of float was short. What happens when it's time to replace the borrowed shares and there just aren't enough to go around? How is that possible?

(Assuming the contracts all have the same end date)
__________________


2015 Nissan Leaf S, 164 mpge

Last edited by ME_Andy; 01-29-2021 at 11:56 AM..
  Reply With Quote
Old 01-29-2021, 12:05 PM   #25 (permalink)
In the fasting lane
 
RedDevil's Avatar
 
Join Date: Dec 2012
Location: Nieuwegein, the Netherlands
Posts: 3,853

Red Devil - '11 Honda Insight Elegance
Team Honda
90 day: 48 mpg (US)

It - '09 Hyundai I10 Active Cool
Team Hyundai
90 day: 29.76 mpg (US)
Thanks: 1,604
Thanked 2,127 Times in 1,371 Posts
I watch Hyperchange since a couple of weeks.
I like his take on this. I also like that I do not have to increase the video speed


I bought a pair of AMC shares (another overshorted stock experiencing a short burn) just to have a toe in the water. It has been going up, for now.
__________________
2011 Honda Insight + HID, LEDs, tiny PV panel, extra brake pad return springs, neutral wheel alignment, 44/42 PSI (air), PHEV light (inop), tightened wheel nut.
lifetime FE over 0.17 Gmeter or 0.1 Mmile.



We all know that light travels faster than sound. That's why certain people appear bright until you hear them speak. ― Albert Einstein

Last edited by RedDevil; 01-29-2021 at 12:21 PM..
  Reply With Quote
The Following User Says Thank You to RedDevil For This Useful Post:
freebeard (01-29-2021)
Old 01-29-2021, 12:29 PM   #26 (permalink)
Somewhat crazed
 
Piotrsko's Avatar
 
Join Date: Sep 2013
Location: 1826 miles WSW of Normal
Posts: 1,557
Thanks: 153
Thanked 425 Times in 361 Posts
Quote:
Originally Posted by ME_Andy View Post
That makes sense. Thanks.

Again, 260% of float was short. What happens when it's time to replace the borrowed shares and there just aren't enough to go around? How is that possible?

(Assuming the contracts all have the same end date)
That time of reckoning is why some stock goes massively expensive and some going bust. The truth be told, I am not sure if you buy the concept or if the stock does physically change of ownership. I still get legal notices and dividends on my holdings.
  Reply With Quote
Old 01-29-2021, 12:41 PM   #27 (permalink)
JSH
AKA - Jason
 
JSH's Avatar
 
Join Date: May 2009
Location: PDX
Posts: 1,716

Adventure Seeker - '04 Chevy Astro - Campervan
90 day: 17.3 mpg (US)

Dieselgate - '14 VW Jetta Sportwagen TDI
90 day: 38.24 mpg (US)
Thanks: 92
Thanked 977 Times in 653 Posts
Quote:
Originally Posted by ME_Andy View Post
I'm curious if anybody can even think of a single good reason to have options and derivatives.
No. It is just gambling.

Supporters claim that they can be used as a hedge against market volatility. You can buy an option at a low cost to hedge against your main position. My take on that is if you are so overextended in your position that you need to buy insurance if it fails then you should dial it back to what you can afford.
  Reply With Quote
The Following User Says Thank You to JSH For This Useful Post:
rmay635703 (01-31-2021)
Old 01-29-2021, 12:58 PM   #28 (permalink)
JSH
AKA - Jason
 
JSH's Avatar
 
Join Date: May 2009
Location: PDX
Posts: 1,716

Adventure Seeker - '04 Chevy Astro - Campervan
90 day: 17.3 mpg (US)

Dieselgate - '14 VW Jetta Sportwagen TDI
90 day: 38.24 mpg (US)
Thanks: 92
Thanked 977 Times in 653 Posts
Quote:
Originally Posted by ME_Andy View Post
That makes sense. Thanks.

Again, 260% of float was short. What happens when it's time to replace the borrowed shares and there just aren't enough to go around? How is that possible?

(Assuming the contracts all have the same end date)
The contracts can't have the same end date. You can only loan stock in the window that you own it. Loaning it outside that window is illegal.

It can all fall apart if people in the chain can't afford to buy back the stock and default. Say if the stock you bought and shorted at $20 suddenly jumps to $450 a share in a week.
  Reply With Quote
Old 01-29-2021, 01:40 PM   #29 (permalink)
Rat Racer
 
Fat Charlie's Avatar
 
Join Date: May 2011
Location: Route 16
Posts: 4,136

Al the Third, year four - '13 Honda Fit Base
Team Honda
90 day: 42.9 mpg (US)
Thanks: 1,757
Thanked 1,908 Times in 1,238 Posts
Quote:
Originally Posted by JSH View Post
No different than me loaning Frank $10, Frank loans it to Jack, and Jack loans it to Sam. There are twice as money dollars loaned than actually exist.
Quote:
Originally Posted by JSH View Post
The contracts can't have the same end date. You can only loan stock in the window that you own it. Loaning it outside that window is illegal.
There's a big difference between borrowing a fiat currency from the government that makes it and borrowing a share of a company. If I borrow more stock than actually exists, do I outvote the current Board and take control? No, because that's silly, you can't do that.

But it's what Wall Street does, and it's a problem.
__________________

Quote:
Originally Posted by sheepdog44 View Post
Transmission type Efficiency
Manual neutral engine off.100% @MPG <----- Fun Fact.
Manual 1:1 gear ratio .......98%
CVT belt ............................88%
Automatic .........................86%

  Reply With Quote
The Following User Says Thank You to Fat Charlie For This Useful Post:
Xist (01-31-2021)
Old 01-29-2021, 01:54 PM   #30 (permalink)
Master EcoModder
 
redneck's Avatar
 
Join Date: Jun 2009
Location: SC Lowcountry
Posts: 1,413

Geo XL1 - '94 Geo Metro
Team Metro
Boat tails and more mods
90 day: 72.22 mpg (US)

Big, Bad & Flat - '01 Dodge Ram 3500 SLT
Team Cummins
90 day: 21.13 mpg (US)
Thanks: 184
Thanked 1,140 Times in 559 Posts
.

Found on another site...

Lol... 😂








>

.

__________________
Disclaimer...

Im not a climatologist, aerodynamicist, virologist, physicist, astrodynamicist or marine biologist..

But...

I play one on the internet.

  Reply With Quote
The Following 2 Users Say Thank You to redneck For This Useful Post:
Fat Charlie (01-29-2021), freebeard (01-29-2021)
Reply  Post New Thread


Thread Tools




Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.
Content Relevant URLs by vBSEO 3.5.2
All content copyright EcoModder.com