Heavily indebted and already financially struggling before 2008, with car sales expected to plummet due to the ongoing global crisis.
The Mother of All Squeezes
How Volkswagen went from being on the brink of bankruptcy to the most valuable company in the world in two days
/THREAD/
Heavily indebted and already financially struggling before 2008, with car sales expected to plummet due to the ongoing global crisis.
If you are not familiar with stock shorts and short squeezes check my thread below.
https://t.co/ABGshetm9x
Shorts, Squeezes, and Betting Against Stocks
— Kostas on FIRE \U0001f525 (@itsKostasOnFIRE) January 27, 2021
What is short selling, how is it used and why is it risky?
/THREAD/ pic.twitter.com/PyDd208hFe
This was a surprise to many who were led to believe that Porsche wasn't planning a takeover of VW, based on the company's announcements.
Porsche had a 30% stake, the Lower Saxony government fund held 20% of the shares, and another 5% was held by index funds.
This left 45% of the available shares to cover for the 13% of short shares.
However, with Porsche acquiring an additional 44% the outstanding shares were only 1%.
Due to the short squeeze, VW's stock rose 66% on Monday and skyrocketed to more than $1,000 on Tuesday.
In a single day, it became the most valuable company in the world.
By December, it had returned to its normal levels, in the mid-200s.
The company was basically a hedge fund selling luxurious cars on the side.
In 2007, 3/4 of the company's profits were from trading derivatives and the rest from selling cars.
The hedge funds that were involved in shorting the VW stock incurred collective losses exceeding $30 billion.
/END/
https://t.co/rahchSIXcC
The Mother of All Squeezes
— Kostas on FIRE \U0001f525 (@itsKostasOnFIRE) January 27, 2021
How Volkswagen went from being on the brink of bankruptcy to the most valuable company in the world in two days
/THREAD/ pic.twitter.com/h85Qhv78Wq
https://t.co/eRwAf5k7oe
List of Educational Threads on Financial Independence and Investing for Beginners#FinancialIndependence #financialeducation #financialfreedom #investing
— Kostas on FIRE \U0001f525 (@itsKostasOnFIRE) January 3, 2021
1/ Financial Freedomhttps://t.co/8j5KG5ioFK
More from Kostas on FIRE 🔥
More from Business
So while America was forced into a high percentage of unemployment, billionaires in America made 406 billion from their “essential” businesses.
I wonder how much came from the
Funny, this transfer of wealth from the poor citizens to the rich billionaires aided by lockdowns and tyrannical governors wasnt just isolated to America. Australia billionaires seemed to amass much wealth during a time record number of businesses
I wonder how much came from the
Funny, this transfer of wealth from the poor citizens to the rich billionaires aided by lockdowns and tyrannical governors wasnt just isolated to America. Australia billionaires seemed to amass much wealth during a time record number of businesses
AUSTRALIA: Country's billionaires are over 50% richer than they were this time last year, according to data from Bloomberg Billionaires Index.
— The Spectator Index (@spectatorindex) December 30, 2020
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https://t.co/hT5XPkTepy #english #wiki #wikidiff
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What is the difference between “alias” and “pseudonym?”
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THIS.
Russia hasn't been a willing partner in this treaty for almost 3 decades. We should have ended the pretense long ago.
Naturally, Rand Paul is telling anyone who will listen to him that Trump is making a HUGE MISTAKE here.
Rand is just like his dad, Ron. 100% isolationist.
They've never grasped that 100% isolationist is not 'America First' when you examine it. It really means 'America Alone'.
The consistent grousing of pursuing military alliances with allies - like Trump is doing now with Saudi Arabia.
So of course Rand has also spent the last 2 days loudly calling for Trump to kill the arms deal with Saudi Arabia and end our alliance with them.
What Obama was engineering with his foreign policy was de facto isolationism: pull all the troops out of the ME, abandon the region to Iranian control as a client state of Russia.
Obama wasn't building an alliance with Iran; he was facilitating abandoning the ME to Iran.
Obama wouldn't even leave behind a token security force, so of course what happened was the rise of ISIS. He also pumped billions of dollars into the Iranian coffers, which the Mullah's used to fund destabilizing activity [wars/terrorism] & criminal enterprises all over the globe
Russia hasn't been a willing partner in this treaty for almost 3 decades. We should have ended the pretense long ago.
Naturally, Rand Paul is telling anyone who will listen to him that Trump is making a HUGE MISTAKE here.
Arms control agreements are good when you have willing partners. Lightens the load on our military.
— John Noonan (@noonanjo) October 20, 2018
Russia hasnt been a willing partner in years. There will be gnashing of teeth from people who do arms control advocacy full time, but this is right movehttps://t.co/WmQE43ERCB
Rand is just like his dad, Ron. 100% isolationist.
They've never grasped that 100% isolationist is not 'America First' when you examine it. It really means 'America Alone'.
The consistent grousing of pursuing military alliances with allies - like Trump is doing now with Saudi Arabia.
So of course Rand has also spent the last 2 days loudly calling for Trump to kill the arms deal with Saudi Arabia and end our alliance with them.
What Obama was engineering with his foreign policy was de facto isolationism: pull all the troops out of the ME, abandon the region to Iranian control as a client state of Russia.
Obama wasn't building an alliance with Iran; he was facilitating abandoning the ME to Iran.
Obama wouldn't even leave behind a token security force, so of course what happened was the rise of ISIS. He also pumped billions of dollars into the Iranian coffers, which the Mullah's used to fund destabilizing activity [wars/terrorism] & criminal enterprises all over the globe
