The Volkswagen is the most valuable corporation in the world right now
I don´t have time now to explain the Volkswagen short squeeze in detail. It is well explained by Bloomberg. It is a crazy story. Hedge funds were shorting Volkswagen until Porsche started buying its shares and all the shorters were forced to cover. As a result Volkswagen right now is the most valuable corporation in the world its shares are up 90%. It is worth 100 times more than GM, 12 times more than Boeing. And the banks who were shorting it have lost their shirt. Can somebody end this madness? These are the banks that all of us are financing through our tax money?
Posted on General | 6:51 pm
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Posted by fonero - October 28, 2008 8:21 pm - #
“These are the banks that all of us are financing through our tax money?” - could explain this hypothesis a lot more detailed? I think these banks mostly are tax p-a-y-e-r-s! why should i be wrong? thx.
Posted by Martin Varsavsky - October 28, 2008 8:29 pm - #
@ fonero:
the bailout plan is a plan financed by us, the tax payer, banks are not paying taxes now cause they are losing tons of money and when corps lose money they don´t pay taxes
Posted by fonero - October 28, 2008 8:35 pm - #
of course for today you are ok. but this is the reverse side of free market. - you also made profit in it
300 hundred years ago in the netherlands something similar seemed to happen. in germany it is known as the “tulpenzwiebelspekulation” in engl. then”bulbous tulip speculation”…
Posted by Antoin O Lachtnain - October 29, 2008 4:08 pm - #
Dou you think you should start shorting VW? Can you stay solvent longer than the market stays irrational?
Posted by Martin Varsavsky - October 29, 2008 6:11 pm - #
@ Antoin O Lachtnain:
I don´t short but my friends who did first lost a ton of money but the ones who stayed in the game did very well today as VW shares went down 43%. They are still at an absurdly high level.