Cattle Rancher loses $200M of Tyson's Money Trading Futures

[guru]

No Greensill is different. Greensill was in a business to provide a valuable service to a sector of a business that was being ignored by the Big Banks simply because they were not profitable. Greensill's having financial trouble largely due to the covid-19 that has slowed down the businesses of his clients to the point of defaulting on their loans and the insurance companies bailing on him at the time of need (very typical of insurance companies, never there when you need them) but he had a successful business model that was working. Before Covid-19, he was doing very well and there was no fraud. All Greensill needs right now is this guy:

Somebody to just give pledge their funds to tie him over this difficult period, something the insurance companies were supposed to do.

Whereas this Easterday is different. He was engaging in fraud all alone just for him to engage in financial trading that never worked. The guy was losing money EVERY DAY!!! For TEN YEARS!!! And he defrauded companies to feed his "trading business" aka gambling addiction. Hope he gets some therapy for his gambling addiction when he's doing time in jail.

Greensill:
- was funding businesses and people like Easterday who were issuing fake invoices:
“Greensill Capital’s administrator has been unable to verify invoices underpinning loans to Liberty Steel owner Sanjeev Gupta, the Financial Times reported on Thursday.
Greensill’s administrator, Grant Thornton, has received denials from companies listed as debtors to the steel group stating that they had never done business with Gupta, the FT report added.”
(source: https://www.reuters.com/article/bri...-underpinning-loans-to-gupta-ft-idUSL4N2LU4D8 )

- Greensill was financing imaginary/potential/future clients and invoices:
“The more advanced way that Greensill Capital worked is that sometimes it would sit down with a client and imagine who might one day become a customer of that client, and then imagine how much of the client’s product that hypothetical customer might buy from the client, and then Greensill would pay the client early for those entirely hypothetical receivables, and then Greensill would collect the money later from the customer, if the customer actually became a customer and bought things from the client. If not, Greensill and the client would keep rolling the loans over and hope that one day the customer would show up. ”
(source: https://www.bloomberg.com/opinion/a...nanced-imaginary-invoices-for-gupta-s-liberty )

- was lending money to businesses who already borrowed money against the same invoices from the same companies that backed Greensill:
“Greensill, for its part, was shovelling money to companies backed by its own principal backer, SoftBank.”
(source: https://www.ft.com/content/70ba9c03-e207-4187-b62f-4b73c8fcac19 )

- “the group operated with an insane degree of undisclosed concentration to risky companies, exemplified by the Gupta exposure, while simultaneously trumpeting its (small-scale) contracts with big brands such as AstraZeneca and Airbus.”
(source: https://www.ft.com/content/70ba9c03-e207-4187-b62f-4b73c8fcac19 )

So even if Greensill wasn’t Easterday, he can be compared to WeWork with the dreamy ambitions founded on creativity, leverage, unsustainable business, and literally imaginary profits. Otherwise anyone is free to buy Greensill or start a similar business and back the same businesses Greensill was backing.

 

[JSOP]

Greensill:
- was funding businesses and people like Easterday who were issuing fake invoices:
“Greensill Capital’s administrator has been unable to verify invoices underpinning loans to Liberty Steel owner Sanjeev Gupta, the Financial Times reported on Thursday.
Greensill’s administrator, Grant Thornton, has received denials from companies listed as debtors to the steel group stating that they had never done business with Gupta, the FT report added.”
(source: https://www.reuters.com/article/bri...-underpinning-loans-to-gupta-ft-idUSL4N2LU4D8 )

- Greensill was financing imaginary/potential/future clients and invoices:
“The more advanced way that Greensill Capital worked is that sometimes it would sit down with a client and imagine who might one day become a customer of that client, and then imagine how much of the client’s product that hypothetical customer might buy from the client, and then Greensill would pay the client early for those entirely hypothetical receivables, and then Greensill would collect the money later from the customer, if the customer actually became a customer and bought things from the client. If not, Greensill and the client would keep rolling the loans over and hope that one day the customer would show up. ”
(source: https://www.bloomberg.com/opinion/a...nanced-imaginary-invoices-for-gupta-s-liberty )

- was lending money to businesses who already borrowed money against the same invoices from the same companies that backed Greensill:
“Greensill, for its part, was shovelling money to companies backed by its own principal backer, SoftBank.”
(source: https://www.ft.com/content/70ba9c03-e207-4187-b62f-4b73c8fcac19 )

- “the group operated with an insane degree of undisclosed concentration to risky companies, exemplified by the Gupta exposure, while simultaneously trumpeting its (small-scale) contracts with big brands such as AstraZeneca and Airbus.”
(source: https://www.ft.com/content/70ba9c03-e207-4187-b62f-4b73c8fcac19 )

So even if Greensill wasn’t Easterday, he can be compared to WeWork with the dreamy ambitions founded on creativity, leverage, unsustainable business, and literally imaginary profits. Otherwise anyone is free to buy Greensill or start a similar business and back the same businesses Greensill was backing.

His buyers abusing supplier finance inflating payables is not Greensill's fault; he is a victim of that unfortunately but it's not his fault. And his insurance company is supposed to see that and protect him and defend him instead of ditching him at the last minute. Greensill's business was to extend a loan to his buyers to pay the suppliers in advance of the terms. What the buyers do with the loan extended to them is the buyers' problem. It's like you lend some money to your friend and your friend lies to others in turn to buy more than what your original loan's amount can afford and turns around and can't repay your loan, that in turn f***s you up but ultimately it's your friend's fault not yours. And in the majority of Greensill's case, it's really because of covid-19 that have impacted the buyers' businesses that are causing them to have liquidity problems that in turn impacted Greensill.

And Greensills' concentration of "risky" businesses like AstraZeneca and Airbus is also in a way selfless. He was trying to support businesses for them to be able to accomplish something that cannot be measured in $$ terms. That's not being risky; that's being chivalry. Without his support, you think we would have the AstraZeneca vaccine that's saving billions of lives today? You think without his support for Airbus we would have the continuity of an airplane maker that is crucial to our aviation manufacturing industry? It's not he is financing drug dealers; he was financing businesses that are going through a difficult time due to extreme and unforeseen circumstances. Somebody's got do it but nobody was and he stepped in and filled that void, a void that much better capitalized Big Banks were unwilling to fill. Greensill was and is a hero. If I really have the money, I would gladly buy his business because he was doing something right. And once the economy re-opens, he would be able to get back on his feet and be profitable again. And he should be careful in choosing his insurance company next.

 

[murray t turtle]

They did, but he kept falling asleep every time he counted to 100.

View attachment 256433

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Some ONE GAVE me directions to his home office, turn right @ the dairy farm.It got darker + i called him back, give me some more directions, Phil, its so dark i cant tell a black angus from a holstein/LOL .He did + then said there are no cows there\ that dairy has been closed for years/LOL.........................................................................................................

 

[Pricechange]

I thought "Mike Tyson recovered to the tune of $200MM?"

tyson corp could probably invoice Mike for this 200M and he probably would just pay the invoice without looking at it...lol

But in all seriousness...this goes on all the time. Beef and corn growers industry propping their product prices through commodities long and then pretending it was completely unknown to them..surprised this wasnt hidden in the news..I guess easterday blew the whistle..

and then of course there is the oil industry..lol

 

[murray t turtle]

tyson corp could probably invoice Mike for this 200M and he probably would just pay the invoice without looking at it...lol

But in all seriousness...this goes on all the time. Beef and corn growers industry propping their product prices through commodities long and then pretending it was completely unknown to them..surprised this wasnt hidden in the news..I guess easterday blew the whistle..

and then of course there is the oil industry..lol

%%
Looks more serious than we thought....
Justice Dept, AGs office, [fraud with position limits ,CME],FDIC, Postal inspectors,inflated food prices unlawfully...............................................................................Looks like the chickens came home to roost ,so to speak.

 

[Pricechange]

%%
Looks more serious than we thought....
Justice Dept, AGs office, [fraud with position limits ,CME],FDIC, Postal inspectors,inflated food prices unlawfully...............................................................................Looks like the chickens came home to roost ,so to speak.

Notice that the fraud began in 2010 when beef and corn prices were stale along with everything else. By 2013 prices were gaining nicely on very questionable real demand. The fraud worked, so they just continued it. However, in 2021, beef and corn prices are stable and uptrend, so easterday became expendable. He became a disposable asset to the Firm.

On a side note. For any of you guys not believing that consumer prices are soaring and inflation is real, check the current beef charts for this year. Beef prices have soared 22% since the first March 2020 covid bail out.