This pretty much says they don't have to cover their shorts...ever. And I don't know what is a valid borrowing rate, but I'd sit tight if money was costing my .6%.
RE: Bad earnings for Hedge funds. I don't know the accounting rules for professional traders. For personal traders, you don't realize gain/loss until you sell. I know there are different rules for professional traders, because you can only take 3000 loss and have to carry the rest.
I'm guessing there are some market to market adjustment rules to close the quarters. If that's the case, why are we just now hearing about it, not at the end of Q1 2021? That's when the major GME price spike was and their short positions would look REALLY FUCKING BAD on a Balance Sheet.
If there is no market to market adjustment and they realize the gains when they cover the shorts, that would mean they've closed some of the shorts (or lost their ass somewhere else, but that's unlikely). If they've closed some of the short positions, then we haven't seen the price action that was expected from closing the short. Unless they only closed a few of many short positions, in which case they're fucked right nice and would probably fold their tent and go home.
By the way, I googled Melvin Capital and Citadel's fiscal year ends and they're both 12/31. Accordingly, fiscal year earnings won't be disclosed until probably February, so any profitability numbers would come from quarterly releases, and again, why was Q1 2021 not the bombshell? That's when the giant price spikes were.
I don't know what's actually going on here, but there isn't a real clear picture on much. [Reply]
Originally Posted by lewdog:
Meh, these exist for all faster cars. Check out the numerous coffee and cars crash videos. Just hilarious how dumb some people are. :-)
I know. I just have to fling you shit.
BTW why are you awake? Aren’t you in pacific time? [Reply]