Tuesday, January 23, 2022রবিবার, ৯ই মাঘ, ১৪২৮
We typically do not discuss financial engineering in this space, but today seems to be opportune. This is a story that is rather widely known in a niche circle of the students of financial history. This is the story of Michael Burry and his hedge fund Scion Capital Management. It is made famous by the book by Michael Lewis and later a movie by the same name, The Big Short.
Personally, I am told a lot of the time that Short Sell is bad, it is even unfair. Capitalizing when market or stock prices go down is unethical. I am also told that short selling (selling a security first by borrowing it, and then buying it back at a lower price, at a profit is called short sell) is risky. This is simply because, again I am told, that price of a stock or a security can potentially go to infinity (for the crypto people, “to da moon!!”), therefore, one can have unlimited losses. While if you just buy a stock or a security (or crypto) it can only go to zero! Here is the funny thing; I have never seen anything to go “to da moon!!” (NASA stopped going there a while back). Yes, nothing that I have ever owned went to infinity. However, I have owned many assets that went to ZERO! Maybe there is a lesson to be learned there.
I think the rub on short-selling comes from the fact that short sellers are having fun when the market goes down. Like right now. Hive below $1 (some ‘ace trader’ here mentioned not too long ago that Hive will not go below one again), BTC below $40K, yeah you could be feeling the pinch, eh? If someone has fun while making profit, your rub will be many fold, eh?
Dr. Burry was autistic. He had a troubled life. He is always very opinionated. A medical doctor by profession he started trading during his night shift breaks. His stock picking was uncanny. He started a financial blog on his stock picks which was immensely successful during the dot com bubble. He started his own hedge fund in 2000. Investors were easy to come by, because by then he was already a celebrity in the niche financial world. By 2005, he saw the inflated real estate prices in the United States and globally, and thought that this real bubble was going to burst. So he wanted to go short against the rising real estate market. It was not an easy thing to do at that time. It was also highly dangerous and costly. He first started shorting stocks, but couldn’t get enough leverage. Then he started buying credit default swap (a sort of a leverage bet against subprime mortgage bonds). He kept buying while the market kept on rising. He lost millions and many investors decided to quit his fund. But he managed to convince them and stayed short of the subprime mortgages. Finally in 2007 the financial crisis and the stock market collapse happened. He had the largest short position on the mortgage market. As the market collapsed Dr. Michael Burry made $100 million plus for himself (in commission) and $700 million plus for his remaining investors who remained with him. As many of the famous talking heads in the financial world were closing shops or accepting defeat for good. Dr. Burry stood tall, alone, at the top. Yes, it is very lonely at the top.
Author -
As he spoke, he walked again to where the covered thing was and opened it. I could hear some of the other students utter exclamations in shock. I looked closely to really see what it was and realized it was a pale body, a dead body lying lifeless on the stretcher. I could feel my stomach gurgling uneasily as I tried to catch my breath.
Sometimes I think we have a lot of philosophers. But we cannot identify them. In this way many unknown philosophies are hidden from us. So we should spend some time with older people.
Listening to their life stories. Especially to spend leisure time of our life with our family uncles, grandparents. Then we will learn to understand many things that society does not know.
I'm here now, wondering if I'm destined for a garden or a wasteland.
Wondering why I haven't noticed the comets before
Flying, exploding into stardust. Landing among the stars.
I've looked down so much that I've never really seen
The sky before, never seen the freedom it could hold.
The sky's the limit, I've been told.But, for me, it's just a starting point.
It's not a guilty pleasure. It's not forbidden. It's not frowned upon.
Even the wisest and the noblest of men may find themselves laughing at someone else's misfortune. There are millions and millions of vines and Tiktok videos that prove, we sometimes enjoy others' misfortune.
Schadenfreude
If you don't know the definition, then what does this word sound like to you? To me, it sounds as if someone is up to some shenanigans. If you want the definition, you can look it up on google. In my simple words, when you see a stranger slips his footing, falls on his butt, and you start laughing, that's Schadenfreude. Don't beat yourself over laughing at someone's misery; everyone does it from time to time, and even the ones in misery, laugh too. People wouldn't spend hours or days formulating pranks to put someone through the hassle if there isn't fun involved.
There's a saying in Japan that translates as, *** "The misfortune of others tastes like honey." *** We're not all good, and we're not all bad either. And just because you're laughing at someone else's bad luck doesn't make you a "rotten to the core" being. It's not that others' misery is amusing to all of us. It's often a case that we find our misery a little less painful when we see another person having a bad day. Do we seek out pleasure in pain? Certainly. A masochist would find pleasure in the pain that's inflicted on him but not others. A sadist, however, will find pleasure in the pain that's inflicted on others. Are we all a little bit of a sadist and a little bit of a masochist? Call it dark humor.
You cry, I laugh, the world laughs.
I believe many of my compadres will remember a certain comprehension where a man's loss of a pair of shoes dissipated upon seeing a feetless beggar. It means that sometimes seeing someone else in pain gives us the opportunity to forget our pain temporarily - it's a very twisted concept but hey, who has ever been simple - no one. It's a bizarre way of seeking comfort. The world is black, white, and gray. If we were all black and white, then there wouldn't be anyone sharing vines of unfortunate incidents, and the rest of the world wouldn't be laughing.
We're not angels, we're not demons - a little bit of both attributes we have within us - we're humans. In our nature, most of the time, the pain saddens us; we seek joy in normal things, whether it's in ours or others - that's the white side. We inflict pain on others - perhaps that's the black or darker sides. So, I suppose gray areas would be a mix of both - hence the fifty shades of grey or gray (pun intended). When we ourselves find humor in our debacle, when we drop our untouched ice cream, can we blame others if they're laughing at our silliness?
The unicorns don't exist.
The tears started to flow without a word. The body slowly began to regain consciousness after the primary shock of the current state took a more sinister turn. His mind finally formed that one question he never thought would come first, How the hell did this happen? The severity of his situation still somehow left him speechless; his mind couldn't comprehend the cruel truth, the truth of his fate, the cruel tragedy waiting before him.
Why does it have to be him? The question sent an uncontrollable rage into his very core, threatening to destroy the smirking face, a desire to wipe out the existence of everything and everyone. The reality shattered again, and with the bubbling rage, all he wanted to do was scream, scream at the injustice, scream at the world, scream at his own fate tied to this sickening man who would clearly shape the last moment of his tragic life. But he couldn't; the duct tape around his mouth was too tight where his own sock was used to seal the words. Hands and legs slapped together, tied mercilessly, leaving little to no room for blood circulation. The rope around his neck was the only loose thread the bastard left on his body, but he could never figure out the twisted reason behind the mercy.
The thrill rushed through every vein of his body, the sound of low sobs, desperate attempts to lose the tight bindings, few drops of tears on the dusty floor, but mostly the deep ocean blue eyes, holding the hatred, fear, loath and plead, all directed towards him. He was in control of the fate of this unfortunate man. He would shape the story of a last few pages, and it would be him who would decide where to put the full stop. He didn't know the man, didn't know how his life was, where he wanted to go, what were his likes and dislikes, he didn't even know the name, he couldn't care less. But it's the power to mold the fate, the desire to direct the story of an unknown human always pushed him towards an unlimited ecstasy, and he loved it; he loved to watch them beg, plead, offer anything and everything, only to live.
He loved the control.
He slowly came closer, crouching down to take a good look at his new prey, eyes roaming over the body with desperate hunger, while his mind started to spin the wheel, to come up with thousands of ideas, but the first question was where to start.
He looked at the long slender fingers, the soft pointy ears, the rough but at the same time tender jawline, an inviting belly. He could almost feel the squeaky feeling on his hand when the knife would slowly penetrate the stomach and the ecstasy he would feel while pulling it out; the ear would come off without much afford, the elastic substance would be a perfect addition to the trophy list. The fingers, he thought, would require some work, but the dramatic display of the action would certainly soothe the hunger. He nodded with satisfaction; the fun would be worth all the trouble. His eyes again travel back to the favourite part, the ocean blue eyes; he couldn't wait to see the emotions that would consume it shorty, the uncontrollable fear, pain, despise, he couldn't wait to witness it all, but mostly he couldn't wait to see the life, slipping slowly, fading all those emotions one by one, he wanted to witness death, a death created by his own will.
With a slow pace, he walked over to the table placed around the corner of the playroom and picked up one of the sharp knives; the look of pure joy and thrill broke out from his thin lips as he finally addressed the unfortunate man, a cruel fate, he thought, waiting to be shaped by his majestic hands.
Shall we begin.
"Bring me that pot right over here. Look carefully if anywhere else is leaking or not and get back to bed."
"Mommmmmmm, I can't sleep here. It's been leaking all over my bed."
This kind of scenario is quite common for this family. Their house is very old and so the rooftop has served them quite a long time but not anymore it can act accordingly. During the rainy days, the house starts to make living here miserable due to numerous leakages that are discovered every new day. Whether it's midnight or early in the morning, they can't sit or sleep quietly to enjoy the rain. They must suffer and struggle.
In his pastime, the teenage boy hovers through social media, but it's full of rainy updates. Some of his friends posted amazing pictures captured through their balconies, some posted sweet poems about rain, and some prepared delicious foods that best go with a rainy day. It feels like the rain has brought great keenness for all these people.
"Go fetch that bowl over there." said his mother, drawing his attention. He kept aside the phone and rushed. Another new hole, water-dropping little by little from the rooftop. This situation is the most hated one for him, but what can he do more than bear the situation quietly? Nothing, Can't even sleep peacefully under a blanket because at any moment it may get wet, and he can't even say from which end it's going to leak next time.
dim and died,
how far have you seen the gloomy night?
but none was aware,
none is scorned,
like the way, you are here.
how can they hear you cry?
Fathomeed darkness blurred your vision,
while people cheered in revision.
there in the palace,
a leak in the kitchen raised the fire.
the leak exhaled and burned their happiness.
The conspiracy makers laughed and enjoyed,
while the innocent lost their lives.
some are cozy, while some are boiled.
but some learners were crushed indeed,
they failed their exams on New Year's Eve.
the drunken had a blurred vision.
He saw stars shining brightly near his reach,
while the lighting caressed him to sleep.
he flooded it with poison indeed.
He did not last that night,
he died in his sleep.
it is the night for the Schadenfreude.
lures it drives,
nature of which is sadistic,
oh, here is a masochist!
dim and died,
how far have you seen the gloomy night?
Many people around us enjoy indulging in schadenfreude quite a bit. Whenever someone asked me to make a statement regarding schadenfreude, I could cite a dozen examples. This example may involve a close friend of mine, a relative, or a neighbor.
I often felt schadenfreude with friends when I was in college, and I have seen many people who laugh at others' misery. But after a while, even their laughs die down. Because inevitably, the tables always turn.
The most painful laughter I experienced reside in my college life. When my best friend stabbed me in the back, and everyone else laughed at it, the trust I had in people dissolved. I wasn't sure how I could trust someone again completely after that because I didn't know how their brains function. From there, I learned to "Never trust anyone " (please forgive the negativity).
Many in life may have found a good friend who, with all their might, tried to create a place of faith in your heart. At that time, I was in a lot of pain. But I couldn't cry out because those around me who witnessed my misfortune would only enjoy it more. I could always hear their schadenfreude-inspired laughter ringing in my head.
You must always keep your eyes open, remembering those who laughed at you. Because they are the ones who don't want you to improve, and I have kept them in my memories in each case. It will be best to keep ourselves away from these people.
মানুষ এখন হাসির ভেতর লুকিয়ে রাখে ফণা,
আড়াল হলেই নিন্দে ভীষণ, সম্মুখে বন্দনা।
"Fiddling while Rome burns!"
— Nero Claudius Caesar Augustus Germanicus.
We all know this idiom. But sometimes, it makes me wonder about its origin. It made people come up with numerous interpretations, but there's no concrete historical evidence that proves that Nero was fiddling at the exact time when this famous historical event took place. Moreover, there are no archaeological references of such a musical instrument called fiddle or violin to exist in 64 AD.
Doing trivial things amidst chaos or a crisis by a person is what this expression refers to. It has great affinity with the devastating event of a great fire which burned the mighty city of Rome.
A lesson to be learned here is giving importance to the right thing; I say arranging them in a priority-based order. You will definitely find out the most crucial one. Singing about Troy and watching a city burn into ashes can be considered as a good example of a certain behavior that is easy to avoid.
But it is crucial to look at the other side of the coin as well. Newton's great theories of motion have made me look at this idiom in a new light. Every action has an equal and opposite reaction! When you try to bring any positive changes, you will undoubtedly encounter some people who will always try to pull you back. Criticism is good and I love them. But personally, I adore the constructive ones.
— Sam White
For all mankind tries to paint themselves as holy and glorious saints, they are nothing but vigorously tainted in their nature. Vile and lecherous thoughts haunt our psyches more frequently than we care to admit, and it's just a game of pretense everyone puts up on their end as they try best to resist the temptation the thoughts bring. Some succeed more or less as they live their lives; others are not so lucky. But like all, even the most tainted ones wear a mask of innocence, playing out the role of a model human as best they can, while shoving these dark fantasies and fallacies into the filthy closet of their mind.
Schadenfreude; it's a feeling that's most common in human nature, and as it falls under the tainted diagram, it also falls into the list of most concealed. But just as truth always sees the light no matter the situation, you can never truly hide this lecherous feeling. And so the sense of schadenfreude lives on, marking its presence through lives and history, both.
Take warfare as the most common example. The winning nation cries in joy and delight while the losing nation suffers a terrible loss. Even with all the splatted blood and bodies from both sides, we see praises being rained upon the ' heroes' who brought down the so-called 'chaos', while snickering at the battered down soldiers and commoners who suffered losses unrecoverable. It's common for humans to hide their hideous acts under the hoods of righteousness. The things that are beneficial to the party or person are put on the pedestal called 'greater good', and all the bloodshed and harming behind achieving the goal are shoved under the rug. Such is the game of politics. Most of us are mute pawns to this system, and we play the game they want us to play without the concern of cause and effect.
If we move on to a more personal level, schadenfreude is more shrewd and vile. The tingling feeling of satisfaction you receive when you see your friend receiving a low score on the same exam you took? That right there is where the core of this sensation resides. It's just the intensity that varies from person to person, from act to act. And no matter how much we try to separate these small tingling feelings from the ones that generate from vile acts, the origin stays the same. The satisfaction a rapist receives while doing the unforgivable is merely just an intensified feeling one gets as they laugh while watching someone slipping down the stairs. It's an unacceptable comparison, a concept that raises questions against humanity. But humanity itself is a tainted equation, woven with traces of self-satisfaction and glorification.
In the end, it all comes down to resistance and acceptance. We can never deny the darkest part of ourselves. They live and breathe the same as we do, and denial and unacceptance only make the lava boil, biding its time to pour out. The more you run from your demons, the harder they give chase. So why not accept them instead? Acknowledge them and yourself as who you truly are, and have trust that you'll make the right choices in the end. Because even with all the tainted corners and dark alleyways, humanity is like a city; prospering even with its flaws.
Because it's the flaws that make it more real. It's the flaws that make it more,human.
Barcelona/Atletico Madrid are two of the world's most elite football clubs. But one of them suffered a tad too much under the transition. And that would be Barcelona. The club signed several players in the last half-decade to fill the void Neymar left behind. But none of those choices were practical enough. The latest in this long list of so-called "Fan signings" is Antoine Griezmann. The celebrated Frenchman was the star at the red half of Madrid. And when he expressed his wishes to play for Barcelona, the transfer took place. Barcelona wanted to calm the fans more than they wanted to replace Neymar, and as a result, Griezmann's career went downhill. On the other side, Atletico also suffered without their star forward, who played as a shadow striker.
Playing for Barca brought many changes to Antoine's role. He was primarily tasked to play at the wings, which is undoubtedly not his role. So, he lost his touch, and the world lost Griezmann as they knew him. Fast forward a little in time, Barcelona was set to let go of the prolific Uruguayan, Luis Suarez. The club allegedly humiliated the player upon his departure, for which Suarez was grieved. Guess who bought him from Barca? Atletico. Buying him for a measly 2.5 million euros and, with his help, Atletico actually won the league. Okay, that's one sting in Barca's back.
Now, the very next season. Griezmann was having a rough time. So, finally, Barcelona decided to let him go, on a loan deal, to Atletico Madrid. Yes, they sent him back where they took him from. And getting back at his old club and role, Griezmann flourished again. And Barcelona? Their jaws dropped that they lost their only good striker to a rival club and were in contention of potentially a 70-million-euro net losses in both Griezmann and Suarez deal. Barcelona was stunned by Atletico Madrid in both on-field and off-field facets. And today, Atletico is enjoying the duo of Suarez and Griezmann. Meanwhile Barcelona? Well, is busy being Barcelona
