So, I'm not good at this, and maybe someone else can clarify all of it, but I think this website tells me (as a very amateur stock market dabbler) that the banks that we bailed out in 2008 are betting that the economy will fail again.
My buddy and I were discussing stocks after the BBBY talk today and he pointed me at SQQQ.
https://www.proshares.com/our-etfs/leveraged-and-inverse/sqqq
In his explaining this to me, he said “buy that stock if the world ever goes to shit like it did in 2008 again” and I'm like what?
So, he explains that, apparently, this stock is a -3x representation of the market, so whatever the value of the market (quote unquote market) is at the moment, this stock is worth -3x, or inverse 3x, I should say.
I'm pretty sure the idea is that these banks are holding a bunch of these stocks right now because it'll go stupid if the economy crashes. So.. when was the last time the economy took a massive dump? When the banks caused it.
If you look at the bottom of the page I linked above, it lists the holdings. I don't fully understand this, but all this looks an awful lot like these guys are betting they'll mess it all up again.
If you look at the charts for this stock, it was worth -$400000 in 2010. If the market crashes again, these banks stand to make a shit load off these stocks, right? Am I missing something? Someone smarter than me look at this and tell me if I'm wrong.
I'm posting it here because it's a perfect example of corporate greed. I'd imagine we could find a million examples of stuff like this if we looked at all these companies hard enough.
At the same time, they are saying we are too expensive to pay. They are saying free healthcare is too much. All while they're betting that they can send us into a free fall again?
If I'm right about this, we should all be very pissed, and I feel like enough American's don't know this is happening.. or that it's even possible.
Hence..