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Dr Sardonicus 2021-01-15 12:59

Mystery Economic Theater 2021
 
[url=https://www.npr.org/2021/01/11/954945486/trump-regulators-rule-would-force-banks-to-lend-to-gun-makers-and-oil-drillers]Trump Regulator's Rule Would Force Banks To Lend To Gun-Makers And Oil Drillers[/url][quote]The Trump administration is trying to push through a last-minute rule that could force banks to offer loans to gun-makers and oil exploration companies or to finance high-cost payday lenders.

The move follows announcements by the biggest U.S. banks that there are some industries and activities they don't want to finance, such as drilling for oil in Alaska's Arctic National Wildlife Refuge or making loans to gun manufacturers who make assault-style weapons. Some major banks have [url=https://www.npr.org/2020/02/26/809210657/alaska-feels-the-brunt-as-investors-promise-retreat-on-fossil-fuels]sworn off[/url] making those loans.[/quote]

axn 2021-01-15 13:29

Wouldn't this run into forced speech / first amendment issues?

Dr Sardonicus 2021-01-15 13:37

[QUOTE=axn;569354]Wouldn't this run into forced speech / first amendment issues?[/QUOTE]I'm not sure about free speech, but I imagine it will run into [i]some[/i] legal issues. Possibly something based on "substantive due process," which basically means that laws should forward the legitimate aims of government.

But my guess is, the new Administration will deep-six the new rule.

bsquared 2021-01-26 22:01

Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.

masser 2021-01-26 22:21

[QUOTE=bsquared;570178]Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.[/QUOTE]

The madness of crowds. It'll be painful when the party ends.

Dr Sardonicus 2021-01-27 00:33

[QUOTE=bsquared;570178]Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.[/QUOTE]Gamestop. Huh, never heard. [Google Google]

Hmm, it seems the same shenanigans are being played with a number of stocks.

Fascinating. A group of investors on the the WallStreetBets subreddit of Reddit manages to create enough demand to drive a stock higher though the company's prospects are not rosy, the vultures have begun to circle, and its stock is being sold short.

As I understand it, a short sale is usually of borrowed shares. The broker who loaned the shares for the short sale can and will will step in and close the short position if the price moves too far the wrong way too fast, and the short seller then has to pay up. So if a stock expected to fall rises rapidly instead, it creates a "short squeeze," in which the short sellers scramble to buy back their borrowed shares before the price goes [i]too[/i] high and they lose their shirts. And this increased demand helps drive the price up further.

So one thing is, these folks driving up stocks despite the companies' prospects are sticking it to short sellers.

Once all the current short positions are closed out, my guess is, the company's actual prospects come back into view, and it's "look out below!"

LaurV 2021-01-27 03:50

You can only sell short on an uptick. When it falls, it falls hard.

retina 2021-01-27 05:02

The real WTF here is that huge casino everyone refers to as the stock market.

masser 2021-01-27 17:34

[QUOTE=Dr Sardonicus;570190]
Once all the current short positions are closed out, my guess is, the company's actual prospects come back into view, and it's "look out below!"[/QUOTE]

Here's the take of a cryptocurrency dude: recent political radicalism is bleeding into finance. The crazy short-squeezing in GME is just one more item in the list of [URL="https://twitter.com/novogratz/status/1354422972191297539"]"symptoms of growing inequality."[/URL]

bsquared 2021-01-27 18:03

[QUOTE=masser;570267]Here's the take of a cryptocurrency dude: recent political radicalism is bleeding into finance. The crazy short-squeezing in GME is just one more item in the list of [URL="https://twitter.com/novogratz/status/1354422972191297539"]"symptoms of growing inequality."[/URL][/QUOTE]

Sounds about right. Browse through r/WSB right now and you'll see a lot of hate directed toward "the man". Some seem less interested in making money than they are in taking down the establishment.

xilman 2021-01-27 18:23

[QUOTE=bsquared;570273]Some seem less interested in making money than they are in taking down the establishment.[/QUOTE]So what else is new?

masser 2021-01-27 18:26

[QUOTE=bsquared;570273]Sounds about right. Browse through r/WSB right now and you'll see a lot of hate directed toward "the man". Some seem less interested in making money than they are in taking down the establishment.[/QUOTE]

If you have the money to burn by attacking investors in short positions, you are "the man."
Or a fool being duped by some incarnation of "the man."

Xyzzy 2021-02-01 02:24

[URL]https://arstechnica.com/gadgets/2021/01/hedge-fund-melvin-sustains-53-loss-after-reddit-onslaught/[/URL]

Edit: "Thoughts and prayers!" :rofl:

Dr Sardonicus 2021-02-03 02:12

[QUOTE=masser;570279]If you have the money to burn by attacking investors in short positions, you are "the man."
Or a fool being duped by some incarnation of "the man."[/QUOTE]I'd say the WSB folks who bought in late are, or will be, out most of what they invested.

Gamestop (GME)

[Date, open, high, low, close]

Jan 28 2021, 265.00, 483.00, 112.25, 193.60]

Jan 29 2021, 379.71, 413.98, 250.00, 325.00

Feb 01 2021, 316.56, 322.00, 212.00, 225.00

Feb 02 2021, 140.76, 158.00, 74.22, 90.00

Dr Sardonicus 2021-02-05 00:25

Gamestop (GME) update [date, open, high, low, close]

Feb 03 2021, 112.01, 113.40, 85.25, 92.41

Feb 04 2021, 91.19, 91.50, 53.33, 53.50

Uncwilly 2021-02-05 00:51

Should have shorted it on the 29th.

Dr Sardonicus 2021-03-06 13:05

[url=https://apnews.com/article/john-mcafee-social-media-indictments-money-laundering-arrests-eb5ed1605f98693099fe8e3c70fb5405]Antivirus software creator charged with cheating investors[/url][quote]NEW YORK (AP) — Antivirus software entrepreneur John McAfee was indicted on fraud and money laundering conspiracy charges alleging that he and cohorts made over $13 million by fooling investors zealous over the emerging cryptocurrency market, authorities said Friday.

McAfee, 75, was charged in a newly unsealed indictment in Manhattan federal court along with Jimmy Gale Watson Jr., who served as an executive adviser on what prosecutors described as McAfee's "so-called cryptocurrency team."[/quote]

Dr Sardonicus 2021-03-25 12:33

This didn't seem to fit in the "Ferries and passenger shipping" thread over in the Lounge. It will, however, have a major impact on shipping, and therefore the economy. How major depends on how long it takes to refloat the ship, assuming it can be done. If it becomes impossible (e.g. the ship breaks) the impact would be major indeed.

[url=https://apnews.com/article/egypt-coronavirus-pandemic-asia-suez-canal-africa-d8b6696716ab45794cba583ecf0e4001]Stuck ship in Egypt's Suez Canal imperils shipping worldwide[/url][quote]ISMAILIA, Egypt (AP) — A skyscraper-sized cargo ship wedged across Egypt's Suez Canal further imperiled global shipping Thursday as at least 150 other vessels needing to pass through the crucial waterway idled waiting for the obstruction to clear, authorities said.[/quote]

retina 2021-03-25 12:43

WP has a picture of that.

[url]https://en.wikipedia.org/wiki/File:Ever_Given_Suez_Canal_24_March_2021.jpg[/url]

Dr Sardonicus 2021-03-25 16:27

At [url]https://www.vesselfinder.com/?imo=9811000[/url] there's a map with the current position of the [i]Ever Given[/i].

You can zoom and move the map to get everything from just south of Suez to the Mediterranean just north of Port Said. The circles showing the positions of other ships make those areas, and the Great Bitter Lake, look like bubble baths.

xilman 2021-03-25 18:11

[QUOTE=Dr Sardonicus;574535]This didn't seem to fit in the "Ferries and passenger shipping" thread over in the Lounge. It will, however, have a major impact on shipping, and therefore the economy. How major depends on how long it takes to refloat the ship, assuming it can be done. If it becomes impossible (e.g. the ship breaks) the impact would be major indeed.

[url=https://apnews.com/article/egypt-coronavirus-pandemic-asia-suez-canal-africa-d8b6696716ab45794cba583ecf0e4001]Stuck ship in Egypt's Suez Canal imperils shipping worldwide[/url][/QUOTE]Time to dust off the record from Plowshare?

Uncwilly 2021-03-25 18:22

The Canal has an interesting past event of note: [url]https://99percentinvisible.org/episode/great-bitter-lake-association/[/url]
[url]https://en.wikipedia.org/wiki/Yellow_Fleet[/url]

Dr Sardonicus 2021-03-29 14:51

[url=https://apnews.com/article/suez-canal-ship-freed-live-updates-48f856c9afed58feb908878c2a495287]Giant container ship that blocked Suez Canal set free[/url][quote]SUEZ, Egypt (AP) — Salvage teams on Monday set free a colossal container ship that has halted global trade through the Suez Canal, bringing an end to a crisis that for nearly a week had clogged one of the world's most vital maritime arteries.

Helped by the peak of high tide, a flotilla of tugboats managed to wrench the bulbous bow of the skyscraper-sized Ever Given from the canal's sandy bank, where it had been firmly lodged since last Tuesday.

After hauling the fully laden 220,000-ton vessel over the canal bank, the salvage team was pulling the vessel toward the Great Bitter Lake, a wide stretch of water halfway between the north and south end of the canal, where the ship will undergo technical inspection, canal authorities said.[/quote]

Nick 2021-03-29 15:25

They had to shift about 30 000 cubic metres of sand, and finally pulled the ship clear with 11 tugs and 2 sea-tugs.
After its inspection the ship will finish its journey to Rotterdam.

Dr Sardonicus 2021-03-29 15:50

[QUOTE=Nick;574733]They had to shift about 30 000 cubic metres of sand, and finally pulled the ship clear with 11 tugs and 2 sea-tugs.
After its inspection the ship will finish its journey to Rotterdam.[/QUOTE]Yes, assuming the inspection shows it's seaworthy. (taps side of head) Knock on wood...

Nick 2021-07-29 06:54

The container ship that blocked the Suez canal for a while has finally arrived
in Rotterdam with about 14000 containers, containing everything from
school diaries to motorbikes (1000 of them).

kriesel 2021-07-29 23:23

How it's thought to have happened. Why it's likely to happen again: [url]https://www.nytimes.com/2021/07/17/world/middleeast/suez-canal-stuck-ship-ever-given.html[/url]

LaurV 2021-07-30 06:57

Pay-walled here.

retina 2021-07-30 12:52

[QUOTE=LaurV;584379]Pay-walled here.[/QUOTE]Basically this:

The ships are too large and the rudders too small, and the pilots and captains don't have enough control over the ship at low speeds in high winds.

Ship control has been sacrificed in exchange for efficiency.

[size=1]We wanted to save $10 on fuel so we made the ship uncontrollable and it cost us $300M. It was a totally worth it.[/size]

xilman 2021-07-30 14:09

[QUOTE=retina;584393][size=4]We wanted to save $10 on fuel so we made the ship uncontrollable and it cost us $300M. It was a totally worth it.[/size][/QUOTE]I wonder what is the life-time saving on the fuel cost of a fleet of ships? Much more than $10 I am sure.

It may well be totally worth it, especially if part of the $300M (and other risks) was covered by insurance payments costing less than $300M.


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