The hope for the little boy, who we all are, is that one day hell would come for breakfast on the hedge fund tools that are close to ruining baseball, the country and the world. And right now, through an inexplicable force that could only be karma, everyone would have to work at Wendy’s so they could experience what a minimum wage is really like. The system is too equipped for this calculation to arrive and they have already bought and paid anyone who could have made that change, but there is still hope. Hope is good, perhaps the best of things, after all.
The canary of the coal mine would always be the Mets, of course.
After all, the Mets were the only sports franchise they received Special Joan Collins by Bernie Madoff, who gave sports fans a look at the sordid hedge fund / world Ponzi scheme and inner chaos. The Mets were paralyzed for years by the losses of the Wilpon family in the Madoff affair. Does it happen again? Probably not. But you can excuse Mets fans for having some flashbacks and getting a hose to feel safe.
If you haven’t seen it, and this is very unlikely, as it has been everywhere for the last two days, there has been something like a mini-insurgency against one of these insatiable hedge funds in recent days. Melvin Capital had been shortening GameStop shares; he bet the retailer would run out of effort, especially during the pandemic, to continue. I’m not going to try to explain the whole concept of “short circuit,” because I, like you, tend to have my eyes crossed with this kind of thing. Also, if you’re interested, here’s an excuse to find the scene The great short film on Margot Robbie explains it in a bathtub, which will be a much more enjoyable experience for you. In the crudest terms possible, basically, these rich idiots are trying to take advantage of the demise of a company.
Well, some Reddit users decided to defend themselves and started buying GameStop shares. And buying it and buying it. Seeing as this would raise the price, and that’s exactly what Melvin Capital didn’t want, they were a bit boned. And it got worse, because Elon Musk always makes things worse, and all of this has fed on itself over the past two days. The end result was that Melvin Capital was off their skis worth $ 3 billion.
G / O Media may receive a commission
And this is where the new Mets owner, Steve Cohen, comes in.
The Cohen’s Point72 Asset Management group is one of two funds that teamed up to get Melvin with $ 2.752 billion to keep him afloat, and hopefully they will overcome the proletariat’s push against them. He also took them out of his GameStop game (though some Reddit warriors are skeptical). Cohen’s company is “only” involved for $ 750 million right now, but you know how these things can go. Currently, GameStop shares are trading around $ 320 per share, about 16 times more than where it was on January 12, when it all started, and almost 50 percent more than even yesterday.
Cohen has already addressed it by calming the nerves of Mets fans, indicating that his business and baseball farms are not mixed.
And that is probably true. $ 750 million is barely a fraction of Cohen’s overall value, and that’s not how these things work, and he should be pretty sure. But it would be pretty wonderful if it weren’t for him and the Mets. One of these days, these people have to lose and lose a lot. And who loses more than the Mets?