You are currently browsing the tag archive for the ‘Wall Street’ tag.
Last month embattled Ukrainian President Volodymyr Zelenskyy spoke before the U.S. Congress via Zoom while appealing for help in fighting off the invading Russians. That speech received high praises from most people with one major exception. A Wall Street stockbroker named Peter Schiff complained over Zelenskyy’s choice of wearing a t-shirt.
Notice that he spelled the name of the country as “the Unites States.” In any case that tweet erupted a raging firestorm with many people pointing out that Zelenskyy has literally been dodging bombs that were raining over Kyiv by the Russians and he had been hiding in bomb shelters for several weeks. Who knows when he’ll actually be able to return home and don a regular business suit once again. (Vladimir Putin is still continuing his invasion of Ukraine as of this writing and the 50th day of that invasion came and went last week with no signs of the fighting slowing down.)
I collected this guy’s tweet along with other tweets attacking him and made a short video where I paired it with the song “Shut the Fuck Up.” You can view it on TikTok, Clapper, and YouTube. Enjoy!
Every Wednesday in January, 2021 has been accurately summed up by this tweet that I saw on Twitter featuring just four images.
The first image is the storming of the U.S. Capitol building on January 6. The second is of the Articles of Impeachment that Congress had issued for President Donald Trump for the second time in his term in office on January 13. The third is the inauguration of President Joe Biden on January 20. The fourth one, featuring GameStop, was a drama that first became news yesterday. It seemed to me to have completely come from out of left field but that’s because I’m currently not on Reddit. It involves a type of stock selling that gives Wall Street firms its deserved horrible reputation.
I read up on this and here is what’s going on that I’m going to try to explain as simply as possible. Ideally a company that wants to grow and expand will need money to pull this off. One way is to take out huge bank loans, which can be a hassle if a company is constantly growing only to hit a ceiling so it has to put its growth plans on hold until it can get more loans. Plus the company will eventually have to find a way of eventually paying off those loans.
Another way is to become a publicly traded company on Wall Street where it issues stocks and shareholders will own a share in the company. If the company does well in terms of profits, the shareholders will get some of the profits that the company has produced. If the company does poorly, then the shareholders will financially suffer. Usually shareholders purchase stocks in a company with the expectation that it will continue to prosper.
There is a type of Wall Street company known as a hedge fund, which is pretty sleazy in nature. They are the opposite of a usual shareholder in that they will invest in a company with the expectation that the company will lose profits. If that happens, then the hedge funds will make money. This is basically little more than glorified gambling with a lot of high risk and these hedge funds are basically financial vultures by taking advantage of a company’s decline while hoping that the company will fall apart.
Here is how they do it. Let’s say I’m a hedge fund manager who wants to bet that a publicly traded company that I’ll call The Joe Blow Company is on the verge of financial collapse. Joe Blow only has so many shares to go around and I don’t want to go through the hassle of buying shares myself. But I know someone who is a Joe Blow stockholder. I go to my friend and ask her if I can borrow her Joe Blow shares for a month or two. My friend agrees so she lends me her shares.
The next thing I do is to sell the Joe Blow shares at the stock exchange for its current value, which I’ll say is worth $10 per share.
Now I spend the next few weeks to see how The Joe Blow Company does on Wall Street. My prediction that Joe Blow will decline has come true because I see that its stock has declined to $6 per share. At that point I buy back the Joe Blow shares that I had previously sold but this time I only pay $6 per share using the money that I had earned when I originally sold those shares at $10 per share. In the long run I end up making $4 profit per share that I can keep. Soon afterwards I give the shares back to my friend while I’m feeling smug over my $4 profit per share.
GameStop was about to become a real-life example of a hedge fund target. GameStop, which sells video games and gaming consoles, is one of those retail chains that are frequently found in malls and shopping centers all over the United States. In fact I remember that GameStop really became big when it not only expanded across the United States but it also purchased other chains like Babbage’s, Funcoland, and Electronics Boutique.
GameStop’s profitability has stalled in recent years because of the rise of online retailers like Amazon along with the rise in mobile gaming where one can directly download games to a smartphone or tablet. On top of that, some of the newer video gaming consoles are also offering downloadable games as an alternative to going to GameStop to purchase a video game disk. In fact there is speculation that there will be a day when video gaming consoles won’t even have a disk slot because all of its games will only be available through downloads.
So these hedge funds have been borrowing GameStop shares and selling them on Wall Street with the expectation that GameStop’s shares will decline further so they will buy back the cheaper GameStop shares, pocket the profits, and give the shares back to their owners.
But a group of people on Reddit have thrown a monkey wrench into the hedge fund schemes. They decided to organize on one of Reddit’s forums (known as a sub-Reddit) to buy GameStop’s shares using the Robinhood app. This sudden surge in purchasing GameStop shares have made those shares suddenly go up in value. So the hedge funds who had previously sold GameStop shares in the hopes that it would lose value are now seeing those same shares go up in value. Since these hedge funds had borrowed someone else’s GameStop shares, they are on the hook for buying those shares back at a higher price per share, which means they have lost money.
And these Reddit members have also moved to purchase shares of other companies that the hedge funds have bet on for losing its value like AMC Theaters and BlackBerry only to see the value of those shares suddenly rise as well.
I haven’t purchased anything from GameStop in about six or seven years (due mainly to tight finances plus I have two outdated consoles that GameStop no longer sells video games for—a Playstation 2 and a Nintendo Wii) but I’m definitely cheering that chain’s sudden good fortune. The people who run these hedge funds are the same kind of people who did financial shenanigans that caused the 2008 economic crash that this country has never quite fully recovered from. What was worse was that President Barack Obama did nothing to prosecute those who tanked the economy while hiring Wall Street types like Tim Geithner in his administration. (That was one of the reasons why I was so disappointed in Barack Obama. He should have done what Iceland did, which prosecuted their citizens who helped to tank that country’s economy in 2008 and they are now serving prison terms.)
By not prosecuting those Americans who tanked the economy in 2008, the U.S. government sent a message to Wall Street that it is okay to engage in financial shenanigans that harm companies and their employees (in the form of layoffs) because they will be richly rewarded and will never have to face the consequence of their actions.
But now individuals on Reddit have organized and decided to strike back against the hedge funds and I’m loving this. These hedge funds have lost $5 billion on the GameStop debacle. The hedge funds are finally facing the consequences of gambling on a company’s downfall and they deserve it. As this article in The Guardian puts it:
Hedge funds aren’t exactly the world’s favourite people, given that they make vast quantities of money, often with ruthless disregard for the businesses that become little more than chips in a financial casino game.
During the financial crisis, shorting became a byword for vulture capitalism. Hedge funds were accused of deliberately driving companies into the ground by taking out billion-dollar short positions, artificially pushing down share prices to the point that they collapsed, when they might otherwise have survived.
To be fair, GameStop does have problems, mainly with the fact that its current business model of selling video games and gaming systems in a bricks and mortar store is becoming more and more obsolete due to the rise of downloadable games. GameStop will have to make some hard decisions on whether to go into downloadable games itself or focus more on selling classic obsolete gaming systems while hyping itself as a “retro” gaming outfit or even to expand into other areas (like board games or toys). It’s quite possible that GameStop may eventually go out of business. But, thanks to its recent surge in its stock price, GameStop will have the luxury of taking more time to make its own decision on what to do next.
I’m looking forward to seeing what these Reddit investors will do next. It would be poetic justice to see these hedge funds lose a lot of money. It’s not like these hedge funds are creating anything of value that people would want to buy. They aren’t working with their hands doing jobs like tilling the fields or clearing the streets of garbage. They aren’t doing necessary things like serving as fire fighters or school teachers. All they are doing is just spending their days gambling on the stock market while hoping that companies will fail and not even caring that real people tend to lose their jobs when the companies they work for suddenly fail so much that they end up going out of business.
I’d rather see a wealthy hedge fund manager stripped of his money than see a single mother and her children become suddenly homeless because the mother had suddenly lost her job and she wasn’t able to find another one nor could she afford to continue paying rent on her apartment.
All that I know is that things on Wall Street are going to get very wild.
I’m not feeling very optimistic regarding official U.S. policy towards the Coronavirus pandemic. It turned out that way back in January German scientists had developed one of the first tests for the COVID-19 (which is the Coronavirus’ official name) and they allowed the World Health Organization to offer the test to over 60 nations for free. Except the United States decided to reject WHO’s offer.
So that was the Trump Administration’s first major blunder and they decided to follow up with an even bigger blunder. Donald Trump attempted to buy the exclusive rights to a German company’s research into a vaccine for the Coronavirus. In the process that attempt had angered the German government while the German company turned down Trump’s offer.
On top of that, four U.S. senators (three Republican and one Democrat) sold stock in companies related to the Coronavirus shortly before the markets on Wall Street started to drop. So we now have public servants involved with insider trading who view the Coronavirus as strictly a money-making opportunity. That is totally disgusting and gross!
But the big kicker was Donald Trump’s behavior at a press conference today. He started off with claiming that there is a cause for optimism regarding new treatments, even though none of them have been proven effective yet.
Then NBC News reporter Peter Alexander asked what I thought was a reasonable question. He asked Trump to talk directly to Americans who are scared of this pandemic. This was an opportunity for a president to assure the American people to calm down, to tell them that he has a team of experts who are working on the problem, and to tell them that everyone can play their part in minimizing this pandemic by practicing social distancing and washing hands. Trump had a chance to shine in the spotlight had he said something to calm the American people. But that’s too easy. Instead he had a major hissy fit where he called Alexander a “terrible reporter.”
Traditionally the president is the one who speaks to the American people at a time of crisis, whether it’s a terrorist attack or a natural disaster or, in this case, a pandemic. Generally the president is supposed to assure the American people that he and his administration is on top of the crisis and they will get to the bottom of this crisis and ultimately prevail. Donald Trump totally failed at this. Peter Alexander offered him the perfect opportunity to calm people’s fears and, instead, Trump made it all about him and his grudge against Alexander. This is totally unacceptable.
I had briefly thought about going to the Tidal Basin (where the cherry blossom trees are in full bloom at the moment) to see if it is less crowded than other years (like last year when I didn’t last too long because the crowd was so huge that it was nearly impossible to even walk around the Tidal Basin). But then I saw that the DC Metro system had decided to close down the stations at Smithsonian and Arlington plus run the trains only once every 30 minutes in order to deter people from visiting the Tidal Basin. It just looks too much trouble to even go to the Tidal Basin this year plus it looks like there aren’t too many people who are even practicing social distancing at the Tidal Basin and the nearby West Potomac Park, as these photos that were posted on Twitter recently attest.
https://twitter.com/ZhaoyinFeng/status/1240979237122818048
The good news is that there are alternatives to the Tidal Basin. I’ve been to the trees in the National Arboretum and they are quite lovely plus there are usually fewer people than at the Tidal Basin. There are two additional places that aren’t even mentioned at this link that I’ve visited before and you should know about. One is in the Kenwood section of Bethesda, which I last visited five years ago and you can see the photographs right here. The other is on Crofton Parkway in Crofton, Maryland and you can see the pictures I shot in 2016 and 2018.
My only advice is that if you see huge crowds around a bunch of cherry blossom trees anywhere in the Baltimore-DC area, get away from that area ASAP! Yes, the cherry blossom flowers are beautiful to see but they really aren’t worth risking your health and (possibly) your life over.
As for the annual National Cherry Blossom Festival, most of the events (including the annual Cherry Blossom Parade) have been cancelled so you won’t see much entertainment this year.
Le Creuset launches cast-iron Star Wars cookware.
Preacher stops to check his phone while speaking in tongues.
How an “Arts and Culture Economy” rebuilt a former coal town.
Inscription reveals final years of life in Pompeii before the city was buried in ash.
Man knits sweaters of places then visits those places wearing sweater.
Elsa Koditschek cleverly hid in her own house from the Nazis.
Inside the wildly popular forum where landlords plot to screw you over.
Stock buybacks: how Wall Street has created “profits without prosperity.”
Spirit bird: “One-in-a-million” yellow cardinal seen in Alabama.
Today is the last day that Toys R Us is in business. When it closes its doors at the end of the day today, the entire store chain will be history after being in business for 70 years. When Toys R Us began closing a huge amount of its stores in January, I took photos of the one in Annapolis because, at the time, it was among the stores that were NOT slated to be closed. I had heard rumors that the entire chain would eventually go kaput so I decided to take photos of what an average Toys R Us store was like on a typical business day. I purchased a Fingerlings monkey and I was given this free frequent rewards card.
I ended up never needing to use that card because soon after that trip Toys R Us decided to close all of its stores at once. I went back to the Annapolis store during the early phase of that going out of business sale in late March. I made one more trip to that same store in early April, mainly because I was visiting another place in the same area at the time and I decided to drop by the store. I made one impulse purchase on that trip—a 12-inch plush version of the store’s mascot, Geoffrey Giraffe.
Here’s a closeup of his hoof with the backwards letter “R”, which was part of the Toys R Us logo.
You can see more photos of Geoffrey in my April post.
That purchase of Geoffrey Giraffe turned out to be the last thing I ever purchased from Toys R Us. I wasn’t able to make any more return trips to any Toys R Us store after April due mainly to the fact that all of the last remaining Toys R Us stores are located at least a half-an-hour’s drive away from where I live and money was too tight for me to make too many long-distance trips. (It wasn’t always like this. At one point there were three Toys R Us stores located closer to my home but—one by one—they gradually closed until my only Toy R Us shopping options depended on taking long car trips.) So I’ve ended up experiencing the last day of Toys R Us virtually, thanks to YouTube videos like these.
Given what happened, I think it’s very appropriate that the Geoffrey Giraffe plush toy was the last thing I ever purchased from Toys R Us since he was the corporate mascot. He even appears on this latest melancholy update of Toys R Us.com’s website, which announced its farewell.
Toys R Us got killed off by Wall Street corporate greed while its workers are now out of a job. Adding insult to injury, Toys R Us has refused to give their employees any kind of a severance package and they are now organizing to fight that chain for what should be rightfully theirs. It’s a horrible situation no matter how you look at it. Too bad, so sad.
Democrats paid a huge price for letting unions die.
Sexism, remembered and forgotten.
Remembering the life and music of labor agitator Joe Hill.
The 10 greatest films of all time according to 846 film critics.
15 gay Founding Fathers and Mothers.
How to make America more like Scandinavia.
Hey, Nicki Minaj, Pocahontas was a rape survivor, not a sex symbol.
Before buying a Kindle, consider the physical book’s benefits.
The Internet is enabling a new kind of poorly paid hell.
One person’s opinion after visiting the Museum of the Bible.
Closing malls and bankrupt stores: blame Wall Street predation for the “retail apocalypse.”
Your brain on poverty or why poor people seem to make bad decisions.
Yeah, sure, #Resistance, let’s pretend that Bill Clinton isn’t a sexual predator.
Forget the Nordic Diet. Try the Nordic Tax Plan.
Behind the scenes of the new Museum of Selfies in Los Angeles.
The secretive family making billions from the opioid crisis.
Harvey Weinstein, Hugh Hefner and the poor excuse that explains a lot.
You must be logged in to post a comment.