Logical Analysis Report

Key Focus

NMC discovered more than $4bn of loans it says it had no knowledge of before the Muddy Waters report.
Shorting is tough in any market, but even more so when, for years, stocks charged to new record highs week after week.
Before the coronavirus-driven market rout, "there were companies that were clearly problematic companies but wouldn't make a good activist short piece, because investors were so anaesthetised to risk, it really had to be an exceptional situation", such as Burford and NMC Health, he said, "to get traction in the marketplace".
That is why he says that if there is a silver lining to the pandemic-fuelled tailspin in markets, it is that fraudulent companies will perhaps no longer be able to hide under more than a decade of "extra stimulative policy".
"That's the economic playbook we've been employing since the bubble burst," he said
Markets just got pushed higher and higher and people pushed uncomfortable info out of their heads."
He says the market rout might not have been so pronounced if central bank policy had not enabled market participants'disregard of risk.

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Knowledge Graph(Read more)

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High Level Topics

MARKETS

FCA

SHORT-SELLERS

High Level Abstractions

MARKETS(4, 0 Order)

( MARKETS )(4, 0 Order) top

( MARKETS, RISK )(2, 1st Order) top

( MARKETS, POLICY )(2, 1st Order) top

( MARKETS, VOLUMES )(1, 1st Order) top

( MARKETS, VARIOUS )(1, 1st Order) top

( MARKETS, TULIP )(1, 1st Order) top

( MARKETS, TRADING )(1, 1st Order) top

( MARKETS, THE_DUTCH )(1, 1st Order) top

( MARKETS, TAILSPIN )(1, 1st Order) top

FCA(1, 0 Order)

( FCA )(1, 0 Order) top

SHORT-SELLERS(4, 0 Order)

( SHORT-SELLERS )(4, 0 Order) top

( SHORT-SELLERS, CARSON_BLOCK )(2, 1st Order) top

( SHORT-SELLERS, BEAR )(2, 1st Order) top

( SHORT-SELLERS, REGULATORS )(2, 1st Order) top

( SHORT-SELLERS, POLICY )(2, 1st Order) top

( SHORT-SELLERS, MARKETS )(1, 1st Order) top

( SHORT-SELLERS, WARNING )(1, 1st Order) top

( SHORT-SELLERS, VINDICATED )(1, 1st Order) top

( SHORT-SELLERS, TULIP )(1, 1st Order) top

References

( MARKETS ) top
( MARKETS, RISK ) top
(Read more) top
Before the coronavirus-driven market rout, "there were companies that were clearly problematic companies but wouldn't make a good activist short piece, because investors were so anaesthetised to risk, it really had to be an exceptional situation", such as Burford and NMC Health, he said, "to get traction in the marketplace".
That is why he says that if there is a silver lining to...
(Read more) top
He says the market rout might not have been so pronounced if central bank policy had not enabled market participants'disregard of risk.
( MARKETS, POLICY ) top
(Read more) top ... that if there is a silver lining to the pandemic-fuelled tailspin in markets, it is that fraudulent companies will perhaps no longer be able to hide under more than a decade of "extra stimulative policy".
"That's the economic playbook we've been employing since the bubble burst," he said
(Read more) top
He says the market rout might not have been so pronounced if central bank policy had not enabled market participants'disregard of risk.
( MARKETS, VOLUMES ) top
(Read more) top
"For years, we've been looking at trading volumes and it was clear there would be a major unwind," he said.
( MARKETS, VARIOUS ) top
(Read more) top
"With various quant funds getting hit on the chin here, and what I expect will be decreasing prominence of passive index funds
( MARKETS, TULIP ) top
(Read more) top But blame is often put on short-sellers when markets go south, a refrain that goes back hundreds of years. The Dutch banned shorting during the tulip bubble in the early 1600s.
( MARKETS, TRADING ) top
(Read more) top
"For years, we've been looking at trading volumes and it was clear there would be a major unwind," he said.
( MARKETS, THE_DUTCH ) top
(Read more) top But blame is often put on short-sellers when markets go south, a refrain that goes back hundreds of years. The Dutch banned shorting during the tulip bubble in the early 1600s.
( MARKETS, TAILSPIN ) top
(Read more) top
That is why he says that if there is a silver lining to the pandemic-fuelled tailspin in markets, it is that fraudulent companies will perhaps no longer be able to hide under more than a decade of "extra stimulative policy".
"That's the economic playbook we've...
( FCA ) top
(Read more) topHe gives a bull-case scenario. "Let's say I really like Fiat Chrysler," the carmaker known by its ticker, FCA, he begins. "Now, all of a sudden we have this tremendous chop in the markets, but I want to stay exposed to FCA. Now, I'll look at FCA and want to hedge my FCA exposure, so I'll short...
( SHORT-SELLERS ) top
( SHORT-SELLERS, CARSON_BLOCK ) top
(Read more) top'Look in the mirror': Carson Block blasts short-selling critics
'You can't classify me as a bear', says high-profile short-seller, 'you can classify me as someone who has for a long time thought very little of this...
(Read more) top
So how should we now think of Carson Block, one of the world's most famous short-sellers. Is he the classic vindicated bear.
"You can't classify me as a bear," he says
( SHORT-SELLERS, BEAR ) top
(Read more) top'Look in the mirror': Carson Block blasts short-selling critics
'You can't classify me as a bear', says high-profile short-seller, 'you can classify me as someone who has for a long time thought very little of this was real'
Short-seller Carson Block did not see the global Covid-19...
(Read more) top. Is he the classic vindicated bear.
"You can't classify me as a bear," he says.
( SHORT-SELLERS, REGULATORS ) top
(Read more) top
And that is why criticism of short-sellers, growing louder from regulators and governments during this month's massive stock market jolts, gets him particularly riled up.
"When people who have some say in policy and some influence are lecturing short-sellers,...
(Read more) top Napoleon called short-sellers treasonous. Regulators in the US and the UK banned shorting of financial stocks during the 2008 crash.
And despite evidence that questions their effectiveness, bans on shorting are currently being enacted in Italy, France, Belgium...
( SHORT-SELLERS, POLICY ) top
(Read more) top
"When people who have some say in policy and some influence are lecturing short-sellers, I say 'Look in the mirror'," Block said by phone from San Francisco.
He raises his voice a little: "Look at all this fragility in...
(Read more) top
He says the market rout might not have been so pronounced if central bank policy had not enabled market participants'disregard of risk. But blame is often put on short-sellers when markets go south, a refrain that goes back hundreds of years
( SHORT-SELLERS, MARKETS ) top
(Read more) top. But blame is often put on short-sellers when markets go south, a refrain that goes back hundreds of years. The Dutch banned shorting during the tulip bubble in the early 1600s
( SHORT-SELLERS, WARNING ) top
(Read more) top. But he has been warning about market complacency for years.
And that is why criticism of short-sellers, growing louder from regulators and governments during this month's massive stock market jolts, gets him particularly...
( SHORT-SELLERS, VINDICATED ) top
(Read more) top. Is he the classic vindicated bear.
"You can't classify me as a bear," he says.
( SHORT-SELLERS, TULIP ) top
(Read more) top See ( MARKETS , TULIP )