'This has to be one of the single greatest losses of personal wealth in history'

[Grim Reaper 6]

Using derivatives, Archegos, pronounced “Ar-chee-gos” by the company, maintained positions in stocks including ViacomCBS Inc.  Discovery Inc.  and GSX Techedu  and was hit by margin calls as the direction of those highfliers turned against the family office. The downturn in the stocks, with shares ViacomCBS and Discovery registering their worst downturns on record, forced the banks that lent Archegos the money to execute complex derivatives trades to ask the fund to put up more money or unwind the wagers. Losses at Archegos have triggered the liquidation of massive stock positions in excess of $30 billion in value, referred to as block trades, the Wall Street Journal wrote. Some, however, say that Hwang’s fund’s exposures in financial markets approached $100 billion.

‘This has to be one of the single greatest losses of personal wealth in history,’ says stock-market pro of Archegos margin call (msn.com)

[Tatetopa]

It is great to bet your own money if you think you know what is a good bet.  It is not fine to bring down banks and financial systems because you don't have the money to cover your losses..

[Grim Reaper 6]

14 minutes ago, Tatetopa said:

It is great to bet your own money if you think you know what is a good bet.  It is not fine to bring down banks and financial systems because you don't have the money to cover your losses..

Yea my thought exactly, because we know that somehow or someway average people like us will end up paying for the bad judgment of these bad actors.

I just paid $14,045 in federal tax for 2020, when the government bails banks out there is always an increase in federal tax's.

Edited April 4, 2021 by Manwon Lender

[Wistman]

It's not like we weren't warned about the risk of massive unregulated derivatives trading in the Bush/Cheney 2006 financial meltdown.  One of Obama's (read Timothy Geitner's) biggest flops of policy was in not initiating regulation of them after the Obama administration took over.  Now this, so no surprise really.  Stupid, stupid, stupid.

https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477

 

Edited April 4, 2021 by The Wistman

[Grim Reaper 6]

3 minutes ago, The Wistman said:

It's not like we weren't warned about the risk of massive unregulated derivatives trading in the Bush/Cheney 2006 financial meltdown.  One of Obama's (read Timothy Geitner's) biggest flops of policy was in not initiating regulation of them after the Obama administration took over.  Now this, so no surprise really.  Stupid, stupid, stupid.

https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477

 

I totally agree, there no excuse for any of this to happen.

[Tatetopa]

2 hours ago, The Wistman said:

It's not like we weren't warned about the risk of massive unregulated derivatives trading in the Bush/Cheney 2006 financial meltdown.  One of Obama's (read Timothy Geitner's) biggest flops of policy was in not initiating regulation of them after the Obama administration took over.  Now this, so no surprise really.  Stupid, stupid, stupid.

The way I heard it told was that if we removed regulations and reduce corporate taxes, the economy would take off like a rocket.

[Grim Reaper 6]

Just now, Tatetopa said:

The way I heard it told was that if we removed regulations and reduce corporate taxes, the economy would take off like a rocket.

Trumpism at its best!!

[Wistman]

13 hours ago, Tatetopa said:

The way I heard it told was that if we removed regulations and reduce corporate taxes, the economy DOW would take off like a rocket.

There.  I fixed their cunning little lie.

[Tatetopa]

3 hours ago, The Wistman said:

There.  I fixed their cunning little lie.

Point of view my friend.  If you are a member of the elite, the DOW is the economy.   As Leona Helmsley once famously said , "We don't pay taxes, only the little people pay taxes."

[Grim Reaper 6]

17 hours ago, Tatetopa said:

Point of view my friend.  If you are a member of the elite, the DOW is the economy.   As Leona Helmsley once famously said , "We don't pay taxes, only the little people pay taxes."

Yea that is the truth my friend that is certainly the truth!