Non-Tech
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When The Last Tulip Petals Fall, Who's Holding The Paper??
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| An SI Board Since January 1999 |
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This thread is meant to complement Auric Goldfinger's Tulipomania Thread. Auric wants to know when the Tulips will collectively fall, and more importantly why. I want to know who will be left holding the less valued paper when and if that happens. Auric is offering $5000 for the most correct answer to his questions. I am not.
As I read through the newspapers and magazines, as I scan through the posts and links on SI, and as I listen to the "experts" on CNBC, one thing is readily apparent. No one is holding any paper. At least no one admits to holding any paper. So where is the paper? Who is holding the shares over night?
If you look at some of the individual stock threads, or follow some of the day-traders' threads, you'll find that nearly everyone is trading a Tulip or an Internut, nearly everyone is making really big bucks doing so, and no one admits to making the possible fatal mistake of holding Tulip paper at the opening/closing bell.
If you read the financial newspapers, you'll see many institutional investors that have admitted to "dabbling" in these plays, but almost always never for more than a few hours or a few days, because no one wants to be holding shares when the last petals fall from the Tulips.
If you watch CNBC or listen to The Bloomberg Radio Network, very often "expert" analysts will appear to offer their opinions on what is happening, whether the Tulips will crash and burn or go on to new highs, and why they are/are not recommending any particular Tulip to their own client base. But time after time after time, you hear these experts say "The insiders in this Tulip or that Tulip are selling...". So that leads me to believe that the insiders aren't holding (many) shares either.
If you take into account all the Tulip shares out there, the legitimate shares, the shorted shares and the MM shorted shares (from the normal course of business), someone is holding one heckava lotta paper. Who?
Thanks.
KJC
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