5 ms·
I'm tired of people supporting bailouts under the guise of "social good".
by jdhn 5y ago
I'm tired of people supporting bailouts under the guise of "social good".
- HWR_14 5y agoI'm fine with supporting bailouts for the social good. I just think that the shareholders of the bailed out companies and executives should personally lose assets. Not necessarily sufficiently to pay for the bailout but to act as a real discouragement.
- labster 5y agoThey did and will lose money on their bets, just not ridiculous amounts that don’t reflect the real market price. Also the bailouts we’re talking about here are loans to nickel miners to cover margin calls, not free money. They will make money selling nickel at a higher price.
- Lionga 5y agoAnd you are the chosen one to decide which prices are real and which are not "real"?
- labster 5y agoYes, that’s me. First time anyone has recognized me. One of my rules is that prices that have increased by 3 times in a few hours with no real change in demand and most suppliers still producing, then it’s not a real price.
- mynameishere 5y agoAnytime someone places a short position they are creating demand in the future from themselves. They know this.
- HWR_14 5y agoThe problem was the callable short. They had nickel coming in N months. They could fulfill it then. They just couldn't take a short position that would be fulfilled then - instead it had to be fulfilled randomly before then.
- chii 5y ago> the shareholders of the bailed out companies ... should personally lose assets if shareholders lose assets, then it's not a bailout. If they get bailed out, then they aren't losing assets. You're talking about the same coin, viewed from different angles. What you wish to accomplish - the shareholders taking a haircut, but for third-parties such as customers or general public to not take one, is impossible.
- athrowaway3z 5y agoYou're type of reply is common with people who assume the free market is real and that the rules prohibit interference. Neither has ever been true. Its just a theoretical ideal some people in government argue in favor off. Food subsidies are bailouts under the guise of "social good", in some places they prevent people from starving.
- jdhn 5y agoYour type of reply is common with people who want to avoid the very real question of why the rules are bent when trades go wrong for certain people. Please tell me why you think somebody who shorted nickel so heavily to the point that they almost went broke deserves a bailout.