Quote from nutmeg:
Many of the companies that have been the victims of naked shorting should never had access to the capital markets.
Just as home apprasals were inflated so were the IPo business model.
What exactly are you trying to say? That companies that were victims of naked short-selling did not deserve access to the capital markets this is equal to saying that a victim you was murdered should have never had life in the first place.
As far as the inflated prices of IPO's are concerned, most of it is based on the current market expectations, when you as business/stock owners go and buy a business/stock it is your responsibility to do your own due diligence, reduce your expectations and weigh all pros-and-cons before you invest cause if anything happens to go wrong (which is and should be an expected event in any business at any point of time) you run screaming scam.
The actual point is you are perhaps more to blame then some of the fund managers with bad money management cause most of you crying people definitely have far worse risk and money management skills, and do not even believe in accepting your own mistakes. A classic case of displacement.
As far as being in-sync with this topic of this thread is concerned. Two of the three firms that are being scrutinized have not made any significant losses, and the profits were more than losses hence are net profitable in this period.
Furthermore, at least one of these did not even want any part of the bailout and were quite literally forced to be a part of it.
As far as picking up the bad assets of most of these institutions is concerned most losses apart from the initial blowup of the couple of hedge funds was is in the form of mark-to-market accounting rules. All accountants would most probably agree that in accounting assets are always priced at the value of purchase and not at market value as(if) you do not sell an asset there is absolutely no point in counting a loss/profit. On the mark-to-market theory these bad assets are eventually going to reap profits, perhaps at the peak of which the whole mark-to-market business will be removed. Thus making this so called spending of your tax dollars one of the wisest investments ever made on behalf on most of you. Add the interest that will be generated on the money given by or against the choice of institutions to them, and it becomes even sweeter. Btw did I leave out the preferred shares?
A far as bonuses are concerned most people here perhaps do not even know the terms on which bonuses are paid out in the industry. As far as I am aware most of it is a legal obligation.
Btw. does anybody have any idea as to the amount of profits GS may have accumulated on their proprietary positions this year, actually lets make it simpler, on their short positions on crude alone. What ever it maybe they will definitely give a large bonus on that one, and I for one am all for it
Cheers!!
