18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
17,590 Blog Posts

Moron $XIV Trader Levies Lawsuit Against Credit Suisse For Wipe Out

We all know what happened last month with the infamous XIV product, which was apparently DESIGNED to trade to zero. On February 6th, 2018 the XIV was trading $100 at the close of trading. When it reconciled at 4:01 it began to tumble and even greater morons chased it all the way down into the toilet bowl and into the sewers. When it opened up for trading, it was trading at $5, which is generous considering it was DESIGNED to be worthless. It was all there for you to learn about, in the prospectus, but you were too stupid and lazy to figure it out.

Here’s Jim Cramer explaining what had happened.

Here’s some more poignant content from the CNBC website, from a Bill Blain at Mint Partners.

Bill Blain, a senior fixed income broker at Mint Partners, said the main issue with the ETN was “understanding the exact basis on which Credit Suisse has been selling these products.”

And it turns out this understanding is absolutely crucial. The Credit Suisse XIV prospectus says on page 197: “The long term expected value of your ETNs is zero. If you hold your ETNs as a long-term investment, it is likely you will lose all or a substantial portion of your investment.”

Blain said that if that has been “properly made clear to investors” then legally the bank will be covered. “However, it’s not yet clear these products were marketed with that page 197 disclosure concisely explained,” he added.

In response, Credit Suisse spokesperson told CNBC that the bank “clearly stated in the prospectus that this was meant for short-term holding” and that it was marketed exclusively to professional investors.

“It very clearly says this is not a security that you buy and hold. It is designed to be used on a daily basis,” the spokesperson said.

Well is that true? Of course it is. Here’s the CEO of Credit Suisse telling you that he read it in its entirety and it plainly states, in black and white, the damned thing was going to zero. All you had to do was pick up the damned thing and learn about it.


An investor who got wiped out filed a lawsuit in Manhattan, alleging Credit Suisse manipulated the ETN through its liquidation, also stating the company did a poor job explaining the risks associated with the product.

What in the world is he talking about?

Credit Suisse retorted these ridiculous charges with the following statement.

“The publicly available prospectus accurately and fully disclosed the risks of an investment in XIV, which is only intended for sophisticated institutional clients,” the bank said in a statement emailed to Reuters, referring to the product by its former stock ticker.

“Credit Suisse did not engage in any conduct designed to mislead investors regarding XIV’s value or cause the February 5, 2018, decline in XIV’s price,” the bank said.

The bank’s chief executive, Tidjane Thiam, has called the product “legitimate” and said investors took their own risk on a trade that did not pan out.

It just didn’t pan out folks, down 95% from 4 o’clock to 4:01.

The lawsuit is seeking class action status.

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Youtube Reveals Plan to Erase Conspiracy Theory Videos From Platform

You have to understand what we’re dealing with here, an extreme tyrant by the name of Susan Wojcicki.

Who is she?

Her sister is Anne and Anne is married to Google co-founder, Sergey Brin. Susan is also worth ~$400 million — and she’s very smart, and she’s been the CEO of Youtube since 2014. However, after the elections, the free speech mood over at YT changed and Susan promised to do something about it. She promised to crack down on fake news and also demonetize hate speech. Because the platform is so big, she deployed machine learning idiot robots to do this. The subsequent result was the complete destruction of the Youtube community. People who’ve made their lives on YT, professional vloggers, went from making hundreds of thousands to almost nothing at all. The iBankCoin channel, which is now suspended for posting “hate speech” in the form of a CNN interview, went from netting monthly revenues of $4,000 to a few hundred bucks. Lucky for me, I don’t need that money.

This is what Youtube suspended our account over.

So off Susan went, furthering and deepening her crusade against what she deemed to be hateful speech. She has since expanded that mantra to include ‘conspiracy’ videos. I imagine ‘fake lunar landing’, 9/11 was an inside job, the illuminati runs the world’, and everything you needed to know about ‘aliens’ videos will soon be deleted from Susan’s website.


Because she said so.

You’re a dumb goat and cannot make good decisions, so she’ll make them for you. Don’t worry, it’s a private company and they can do whatever they want, just like the electricity company is private and can shut off your lights if they felt like it. Quit being anti-capitalist.

In the event she doesn’t remove your video, she might just myth bust it with links posted to your video, against your will. And, there’s nothing you can do about it.

Conspiracy videos abound on YouTube, whether it’s about the Earth being flat or school shootings being staged. YouTube, its parent Google, Facebook and Twitter are all facing challenges with the spread of misinformation, propaganda and fake news.

YouTube CEO Susan Wojcicki said at a conference Tuesday that the company will include links to the online encyclopedia Wikipedia to try to debunk videos espousing conspiracy theories.

But Wikipedia itself has had its share of credibility issues, as the service lets anyone edit its content, whether that person is a pedigreed expert or an online troll. Though Wikipedia has tried to address that — in part by restricting edits on high-profile or controversial pages — it isn’t immune from hoaxes and its own conspiracy theories.

In a statement Wednesday, YouTube said the links will include other “third-party sources” besides Wikipedia, though YouTube isn’t identifying any. The organization that runs Wikipedia said Wednesday that it had no formal partnership with YouTube, but welcomed the use of Wikipedia resources.

YouTube said the move is part of a broader initiative to crack down on misinformation, though it did not give details on what else is in the works.

While conspiracy videos are nothing new on YouTube, the topic received renewed attention in recent weeks as videos falsely claimed that students speaking out about the Feb. 14 Florida school shooting, which killed 17 people, were “crisis actors” who were not really there when it happened. One such conspiracy video was the top trending video on YouTube until the company removed it — although many similar videos remained up, illustrating the difficulty in instituting any sort of crackdown.

Conspiracy videos, to be sure, are not against YouTube’s policies. In the “crisis actor” case, the company said it removed the video because it violated its rules against harassment. As such, YouTube is unlikely to ban misinformation entirely. Instead, it may adopt Facebook’s tactic of de-emphasizing such content and making it less likely to be seen. As it stands, critics say YouTube is doing the opposite.

How is Susan able to accomplish this gigantic task? It’s simple. During supper she asked her brother in-law, Sergey, if she could hire 10,000 people to ‘clean up’ Youtube and he thought about it, whilst rapidly swishing some Bordeaux in his wine glass, and then he said yes.

She then asked if she could employ the ultra-left leaning Southern Poverty Law Center to help clean it up and again he gave it some thought, and then his wife Anne touched his hand and looked at him and said ‘please sweet heart, do it for me’ and again he said yes.

The net result has been scorched earth ever since, with thousands of right of center content providers being ‘accidentally’ purged.

The one silver lining in all this is the likelihood that we’ll never have to see a flat earth video again, no matter how interested it might be.

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Morning Poppers (The Liquidation of Toys R Us Edition)

Three years ago, Toys R Us was taken private; its balance sheet expanded to $5 billion; exorbitant fees paid to Bain Capital and KKR, and now they’ve played themselves into liquidation. An American icon will soon be discarded to the shit-heap of history — potentially wiping out 33,000 jobs in the process. Moreover, as the liquidation commences, an ocean of available square footage will become available — square footage that only Dick’s and Best Buy could absorb — but they’re not interested in that shit anymore.

Dow futures are indicating +100, in spite of MUH trade war worries. The media are such fucking faggots trying to stir up emotions with this trade war narrative. Remember, we own China, not the other way around, because we’re their primary market and they have a lot of their cash reserves tied up in our treasuries. Never forget that.

Gold is -0.4%, Oil +0.6% and Bitcoins have recovered a bit from last night’s sub $8,000 blood bath, currently trading at $8,200.

Trump said this, regarding S. Korea.

“We lose money on trade, and we lose money on the military. We have right now 32,000 soldiers between North and South Korea. Let’s see what happens.”


And he also said this, according to audio obtained by Wapo.

“Trudeau came to see me. He’s a good guy, Justin. He said, ‘No, no, we have no trade deficit with you, we have none. Donald, please,’ ” Trump said, mimicking Trudeau, according to audio of the private event in Missouri obtained by The Washington Post. “Nice guy, good-looking guy, comes in — ‘Donald, we have no trade deficit.’ He’s very proud because everybody else, you know, we’re getting killed.

“ … So, he’s proud. I said, ‘Wrong, Justin, you do.’ I didn’t even know. … I had no idea. I just said, ‘You’re wrong.’ You know why? Because we’re so stupid. … And I thought they were smart. I said, ‘You’re wrong, Justin.’ He said, ‘Nope, we have no trade deficit.’ I said, ‘Well, in that case, I feel differently,’ I said, ‘but I don’t believe it.’ I sent one of our guys out, his guy, my guy, they went out, I said, ‘Check, because I can’t believe it.’

‘Well, sir, you’re actually right. We have no deficit, but that doesn’t include energy and timber. … And when you do, we lose $17 billion a year.’ It’s incredible.”

Double what!?

Here are other headlines.

Lam Research initiated with a Outperform at FBN Securities; tgt $300
Signet Jewelers target lowered to $44 at Telsey Advisory Group as transformation plans weigh on earnings and visibility
Amber Road: E2open (EOPN) affirms proposal to acquire AMBR for $10.50/share
e.l.f. Beauty downgraded to Underweight at Morgan Stanley
SLDB -57.4% (receives notification from the FDA that IGNITE DMD, its Phase I/II clinical trial for SGT-001 microdystrophin gene transfer in Duchenne muscular dystrophy, has been placed on Clinical Hold)
Qorvo downgraded to Underperform from Neutral at BofA/Merrill

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Everything you knew about Bitcoin, throw it out the window.

Here’s the Bitconnect guy — clearly mentally damaged from his ordeal in BCC.

The sector is now vulnerable to negative news flow. This is prime time for further SEC/government meddling — rape people while their pants are down.

Total market cap now just $325b, down nearly $500 billion from the top or 62%.


Here’s the top cryptos by market cap, currently entering a post apocalyptic landscape, one bereft of civil life.

The HODLers have been dispatched, avocados stolen and eaten by orcs. All that is left now are money launderers who bake in the losses are a transaction cost. The best way to deal with this type of deep sell off is to avoid thinking this is the bottom. Assume prices will drop by another 50%, bake in a worst case scenario, and buy your favorite SHITCOINS using a dollar cost averaging stratagem.

Bubbles are fun until they pop. After they pop and the losses are tallied, sans dead cat bounces, it takes a very long time to recover those highs. Go check out the Nasdaq bubble of 2000 for reference.

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Trump’s New Chief Economic Advisor Hates Bitcoin — But He Loves Gold

I’m sure you heard the news and at this point anything I say about Larry is moot. So now the question pivots to what will Kudlow be whispering to Trump.

Perhaps this?

Maybe that’s why Bitcoin got smashed today, currently trading at $8,200.

Regarding gold, Larry is a huge fan. He even went as fas as to say we should have a gold/commodity backed dollar.

“Of course, I’d love to see a gold- and commodity-backed dollar. And maybe future bitcoin reformers can restructure in such a way. But the dollar is accepted around the world by governments, banks, businesses and consumers because it is a reliable medium of exchange, even if its store of value has deteriorated.”

Regarding the bailouts, this from an old BI article

Hi Henry. would you be kind enough to tell your man Wiesenthal that I have supported a gold -backed dollar since the mid 1970s.

Also, I favored letting Lehman go bankrupt.

And I did not support Tarp 2, the capital injections. I did support Tarp 1, where Treasury was going to buy toxic assets in order to resell them, RTC style. And, Tarp 1 would have been possible under a gold-backed dollar.

The trade: short BTC, long GLD, long UUP.

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Elizabeth Holmes Charged with Massive $700 Million Fraud — Gets Slap on Wrist and $500,000 Fine

At one point Theranos was valued at more than $10 billion. Today, the SEC announced they’ve forced her to surrender all 19 million shares in the company she defrauded people with, in addition to — GET THIS — a $500,000 fine. That’s right, ladies and gents, a $500,000 fine.

Oh, she’s also barred from being an officer or director of a publicly traded company for 10 years. So harsh.

The law is an ass.
The law is an ass.
The law is an ass.
The law is an ass.
The law is an ass.

Holmes began to rise to national attention in 2013 when she claimed that Theranos had developed a medical technology that could do what seemed impossible: Its secret machines could run thousands of medical tests using the blood from a tiny finger-prick, and do so quickly and cheaply. Glowing magazine profiles followed, and she talked about making lives better for patients around the world, as well as disrupting a multibillion-dollar industry dominated by giants like Laboratory Corp. of America Holdings and Quest Diagnostics Inc.

Behind the scenes, things were very different.

Holmes had claimed her machines could process 90 percent of the tests performed by standard lab equipment. Those statements won the company an agreement with a national pharmacy chain in 2010 even though the technology was not yet “commercially ready,” according to the SEC. The SEC refers to the pharmacy chain as “Pharmacy A.” In 2013,

Theranos publicly announced a partnership with the drugstore chain Walgreens, which later sued Theranos. The companies eventually settled.

As the roll-out with “Pharmacy A” neared, according to the SEC, Holmes told the company’s engineers to modify standard blood-testing machines to run Theranos’s tests.

She hid that change from the pharmacy executives, conducting demonstrations using Theranos’s machines and leading them on company lab tours without revealing the company was using third-party technology. The pharmacy gave Theranos a $100 million “innovation fee” to help with the expansion.

Atop of the financial fraud committed, after it was revealed the company has perpetrated a medical fraud, risking the lives of thousands, they had to retract or correct tens of thousands of tests.

It was sanctioned by regulators at the Centers for Medicare and Medicaid Services, which banned Holmes from running a lab company for two years. The company let go many of its employees and shut down its consumer-testing operations, and said it would focus on developing its technology.

By the end of 2017, the company was on the “verge of bankruptcy,” according to the SEC. It has since obtained a term loan that will keep it afloat for about a year, the SEC said.

Steven Peikin, the co-director of the SEC’s enforcement division, said the company avoided paying any penalties in part because the misconduct was perpetrated by Holmes and Balwani. A corporate penalty would harm investors who had already been defrauded, he said.

If you’re scratching your head wondering what makes Elizabeth Holmes and Theranos special, look no further than their original board of directors — all well connected men inside of our government.

Source: Forbes

Let’s take a look at Theranos’ 12-person board (which is an 11-man team if you don’t include CEO and Chairwoman Elizabeth Holmes—interesting given her stated commitment to women in STEM). We have former Secretary of State Henry Kissinger, former Secretary of Defense Bill Perry, former Secretary of State George Shultz, former Senators Sam Nunn and Bill Frist (who, it should be noted, is a surgeon), former Navy Admiral Gary Roughead, former Marine Corps General James Mattis, and former CEOs Dick Kovacevich of Wells Fargo and Riley Bechtel of Bechtel. There is also one former epidemiologist—William Foege, and, in addition to Holmes, one current executive, Sunny Balwani, who is Theranos’ president and CEO.

Holmes’ parents have worked inside the US govt their entire lives, mom as a Congressional committee staffer and Dad is a long time government shill for various agencies.

More on Dad.

For almost 25 years he has served in a number of leadership positions with the Department of State and USAID, including as the Principal Deputy Assistant Secretary of State for Refugee Programs, the Acting Director of the Office of Foreign Disaster Assistance and the Director of the US Trade and Development Agency.

Other US Government assignments have included serving as the third ranking officer at the US Environmental Protection Agency, as its Chief Financial Officer and Assistant Administrator for Management.
A graduate of Wesleyan University, Holmes served as a Second Lieutenant for Civil Affairs in the US Army. He received the US Army Soldier’s Medal for Heroism. In addition to his extraordinary service record here in the United States and around the world, he has served Webb for many years as a trustee (1998-2009) and a class agent since 2000.

Holmes resides in Washington, DC with his wife Noel. They have two children: Elizabeth and Christian (a graduate of WSC’s class of ’05).

My sentiments exactly.

The rules are different for some people.

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FAKE FOOD FOR THE WIN — “The Fly” is Back Crushing Retards and Their Protective Helmets

I stand before you a very successful man. Just yesterday I was lamenting over the specter of being on the wrong side of trades. Then something happened. A slit in the time-space continuum occurred and I started to see digits on my screen, like the fucking Matrix. The power of PI, on this being PI-day, is now with me.

I stepped in and bought EVGN — another FRANKENFOOD company with alliances with Monsanto and House DuPont. They’re working on FAKE CORN, so you can eat that shit along while reading some FAKE NEWS atop your FAKE TITS.

While most of you boneheads got poleaxed today, I banked coin. Let’s review.

I bought YTEN at $2.08, currently trading at $3.05 — +48%.
I bought SEED at $0.90, currently trading at $1.37 — +52%

And lastly, I stepped into $EVGN and it hasn’t moved yet — because they don’t know about it. Shhh, don’t tell anyone.

That was my day, pal. How was yours?

No matter how hard you try, no matter how bad you want it — you’ll never be as good as Le Fly.

Fuck the cryptos. We’re onto bigger and better fake fish (extra AQB).

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Here’s the Next Wall Street Bubble Trade: Ag-Biotech

Get inside of the fucking seed box.

This one is simple, since there are only 3-4 related names in the space so far.

RKDA came out with news regarding their Frankenstein wheat.

Arcadia Biosciences, Inc. (RKDA) has achieved two key technology milestones in its High Fiber Resistant Starch Wheat program. First, through advanced screening and traditional breeding techniques, the company has developed non-transgenic wheat varieties that contain up to 94 percent amylose, the highest levels available. Increased levels of amylose correspond to high levels of resistant starch, which has been proven to deliver significant health benefits. Second, these same wheat varieties deliver levels of total dietary fiber high enough to meet the threshold required by the FDA for a “Good Source” of fiber or “High in Fiber” designation on consumer packaging.

As a result of curing world hunger, this shit happened.

Doing a cursory keyword search in Exodus, I found three other companies in the agricultural biotech space: SEED, YTEN, and FLDM.

I bought both YTEN and SEED.

Regarding SEED, this one has an added bonus. Last year they inked a deal with RKDA to codevelop some Frankenstein corn. Should the corn work out half as well as the wheat, well then, the stock should trade to a billion.

Origin Agritech & Arcadia (RKDA) announce a collaboration to achieve the export of a corn biotech product developed in China to the US for completion of global regulatory trials; financial terms not disclosed (2.08) Arcadia and Origin signed an agreement under which Arcadia will assist Origin in developing information for submission to regulatory authorities in the U.S., China and other countries for the approval of their traits in corn. This project involves production of inbred and hybrid seed lines under quarantine conditions in Arcadia greenhouses. “The successful movement of this corn seed, containing an insect resistance/herbicide tolerance trait discovered and developed in China, to the Arcadia greenhouse represents a key milestone in Origin’s strategic business plan to achieve global regulatory approvals for cultivation and international grain movement.”

Markets are Yellen soft right now — but I am hopeful that the aforementioned companies above can soar on news of curing world hunger, feeding the children and the babies, making food great again.

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Cramer: Rally is Semis ‘Based on Nothing’ — Pajama Trading Bidding Them Higher Because They Don’t Know What to Do

Although tempted to criss cross in the opposite direction and stick a spear into the head of Cramer and his bearish semis call — the man is right. There is a very large brain inside of that very ugly head of his. The lot of you are Cramer haters because you’re jealous of his success. Admit it you fucking faggots.

Here’s Cramer saying the recent rally in the semis is based on ‘absolutely nothing’, a fucking byproduct of asshole ‘pajama traders’ not knowing what to do with themselves. HINT: stop making bad decisions.

I posted that vid on Twitter and this just about sums up the people’s reaction to it.

But hang on there a second, fucked face. Have a look at this chart.

Fuck LAAAAMB research. Don’t sit there and tell me that shit is normal. How many times have the semis crushed investor portfolios over the past two decades? I recall making so much bank in the sector in 2004, only to get shredded in January of 2005. It really was something to behold and will not reflect in the indices or the records that you could access now. You just had to be there.

Now if you’re an investor in the semis today, you think it’s all peaches and cream. Why, you think NVDA and LRCX just invented time machines and managed to figure out how to create money out of thin air, just so your fucking share price could keep climbing up. But the world doesn’t work like that, asshole. What is good today is rotten tomorrow. Go chop open an avocado and leave it unattended for a few hours and then try to eat it. It’ll be black and disgusting and you won’t like it one bit.

That’s what the semis will look like very soon — a disgusting black avocado that has been left out on the table for too long.

As such, I bought SOXS. I am now long LABD and SOXS — positioning for the era of the short.

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Google Bans Crypto-Ads: The Era of the ICO Has Ended

Thank God those fucking ads are going away. My ad vendor was probably getting rich off those fucking things — but the vast majority of the crypto ads were, in face, scams. Google is merely treating them like securities and attempting to protect people from unsavory fuckheads who use ads to get liquid on people who don’t know a damned thing about investing.

The company is updating its financial services-related ad policies to ban any advertising about cryptocurrency-related content, including initial coin offerings (ICOs), wallets, and trading advice, Google’s director of sustainable ads, Scott Spencer, told CNBC.

That means that even companies with legitimate cryptocurrency offerings won’t be allowed to serve ads through any of Google’s ad products, which place advertising on its own sites as well as third-party websites.

This update will go into effect in June 2018, according to a company post.

“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” Scott said.

Google’s hard-line approach follows a similar ban that Facebook announced earlier this year.

While the crypto-currency boom has produced a lot of excitement and wealth, it’s still a largely unregulated space and has spawned countless high-profile scams.

This news comes as Google releases its annual “trust and safety” ads report.

Google said it took down more than 3.2 billion ads in 2017 that violated its policies, which is nearly double the 1.7 billion it removed the year before.

Google parent company Alphabet makes roughly 84 percent of its total revenue from advertising, so convincing advertisers that its ecosystem is safe and effective is critically important.

While I do agree with Google on this item, it should be noted that the company is quite literally removing revenues from their balance sheets by fucking with their Youtube model, banning popular channels, defunding channels that produce content they do not agree with, and now this — wide, sweeping ban of ads for an entire asset class.

Could this lead to an earnings shortfall?

No, since they’re a monopoly and are able to write their own checks. The only way Google misses earnings is if we see a sharp decline in the economy.

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