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 🔥
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Should we go into the details of these 125 years?
SA is built on the exploitation of labour. That labour has functioned on alcohol unfortunately. Very few people consume liquor purely for enjoyment unfortunately. When SAB opened its doors 1895 workers were paid in alcohol- the dop/tot system. 2 years into SAB's establishment
The Prohibition Act is introduced. This means black people are barred from buying your wines, beer etc. So SAB's products are exclusively for white people. But during this period beer brewing by Black women is the norm. Ayinxilisi ncam ke this type of beer. Apparently it had some
Nutritious elements to it. Now some of the context around drinking culture during this time is migrant labour to the mines, further land dispossession, the Anglo-Boer Wars, Rhodes corruption (our first state capture commission if you will) which leads to his resignation.
This context plays a role in how our cities and small towns are constructed, how they lead to the confinement and surveillance yabantu. Traditional beer brewing is identified as a threat because buy now mining bosses have identified that there's money to be made here.
SAB has formed part of the fabric of SA for the last 125 years & we've stood behind the nation through its triumphs & challenges. After much consideration,SAB has decided to approach the Courts to challenge the Constitutionality of the decision taken to re-ban the sale of alcohol pic.twitter.com/40rWpJSW5b
— SABreweries (@SABreweries) January 6, 2021
SA is built on the exploitation of labour. That labour has functioned on alcohol unfortunately. Very few people consume liquor purely for enjoyment unfortunately. When SAB opened its doors 1895 workers were paid in alcohol- the dop/tot system. 2 years into SAB's establishment
The Prohibition Act is introduced. This means black people are barred from buying your wines, beer etc. So SAB's products are exclusively for white people. But during this period beer brewing by Black women is the norm. Ayinxilisi ncam ke this type of beer. Apparently it had some
Nutritious elements to it. Now some of the context around drinking culture during this time is migrant labour to the mines, further land dispossession, the Anglo-Boer Wars, Rhodes corruption (our first state capture commission if you will) which leads to his resignation.
This context plays a role in how our cities and small towns are constructed, how they lead to the confinement and surveillance yabantu. Traditional beer brewing is identified as a threat because buy now mining bosses have identified that there's money to be made here.
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I think a plausible explanation is that whatever Corbyn says or does, his critics will denounce - no matter how much hypocrisy it necessitates.
Corbyn opposes the exploitation of foreign sweatshop-workers - Labour MPs complain he's like Nigel
He speaks up in defence of migrants - Labour MPs whinge that he's not listening to the public's very real concerns about immigration:
He's wrong to prioritise Labour Party members over the public:
He's wrong to prioritise the public over Labour Party
One of the oddest features of the Labour tax row is how raising allowances, which the media allowed the LDs to describe as progressive (in spite of evidence to contrary) through the coalition years, is now seen by everyone as very right wing
— Tom Clark (@prospect_clark) November 2, 2018
Corbyn opposes the exploitation of foreign sweatshop-workers - Labour MPs complain he's like Nigel
He speaks up in defence of migrants - Labour MPs whinge that he's not listening to the public's very real concerns about immigration:
He's wrong to prioritise Labour Party members over the public:
He's wrong to prioritise the public over Labour Party
