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The Crazy Global Bailed Out Financial Firm Recovery Trade

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and of course, some people are making a mint out of it.

From the United States to Greece and Spain, fast money is being wagered on the recapitalization of bailed out financial firms that played a central role in the financial crisis of their respective countries. The frenzied speculation on these zombie-like institutions and their penny stocks is being driven by a range of investors, from big-money hedge funds to small individual investors, causing wild and gigantic swings in share prices that have produced both riches and pain. This is not the first time that financial players have tried to hit home runs off of financial firms that were almost killed by the financial crisis. A few brave and savvy investors made fortunes betting on the recovery of companies like AIG and Citigroup. But this most recent vintage trade, which has included investors betting both long and shot, seems equally daring and maybe even more speculative.

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IIRC a lot of people (investment bankers) shorted the like of AIG at the start then reversed their position just after the government caved in and bailed them out.

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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