Making a fresh pot of tea so I can really savor reading this one Gift link www.wsj.com/tech/elon-mu... - ThreadSky

bakerdphd.bsky.social • 190 days ago

Making a fresh pot of tea so I can really savor reading this one

Gift link

https://www.wsj.com/tech/elon-musks-twitter-takeover-is-now-the-worst-buyout-for-banks-since-the-financial-crisis-3f4272cb?st=54c26wqm01uz7pv&reflink=desktopwebshare_permalink

Comments

lunabelle.bsky.social•190 days ago

And trump just said gas cars better than electric. .there's a fall out coming 🤣

andycrain.bsky.social•190 days ago

The problem is that if the banks are that leveraged by the loans, they are unlikely to call it in. They will keep loaning $ in a desperate attempt to save the day.

bakerdphd.bsky.social•190 days ago

In my mind, the problem is they are holding onto these loans because they still want to see a payday (via fees) if he takes one of his other companies public in the future. Which means they're still willing to let his stuff slide in the hopes of making money in the future.

peter-donnelly.bsky.social•188 days ago

Fire sale in 10..9..8..7..

dly.bsky.social•190 days ago

I love this song!!!

neqone.bsky.social•190 days ago

"Steven Kaplan, a professor of finance at the University of Chicago who has tracked such deals since the 1980s, said Twitter isn’t only the biggest hung deal by dollar amount since the 2008 financial crisis but one of the biggest of all time. "

londoner007.bsky.social•190 days ago

Might join you

marcusmauney.bsky.social•190 days ago

Sicko.jpeg

jymbob.bsky.social•190 days ago

Ahahahahahahahahahahahahahahahahahahahahaaaaaaaa (pause for breath) haaaaahahahahahahahahahahaaa!

jamessteel2008.bsky.social•190 days ago

guiltypanacea.bsky.social•190 days ago

This is delicious

scinrd.bsky.social•190 days ago

A gift of a link indeed, and even better yet, it's about the richest grifter in the world taking out a bank on his downward spiral.
Win-Win in my opinion, it'll be nice watching that whole mess crash and burn.

vickiaphd.bsky.social•190 days ago

Your gift links have me taking actual lunch breaks lately, and I am eternally grateful for it!

bakerdphd.bsky.social•190 days ago

Yessss! My library access should enable other people to read all this good stuff!

photaculous.bsky.social•190 days ago

Only sickener is the Banks will weedle out of it somehow, with some kind of bailout or by pinning the bill on regular folks.

dashingdrewster.bsky.social•190 days ago

Trust elon musk...be broke by dusk

tmoney2007.bsky.social•190 days ago

Lol. LMAO.

noisybrooklyn1.bsky.social•190 days ago

This is most enjoyable. Muahahaha.

mbbrownsf.bsky.social•190 days ago

☕️🫖☕️

Joining this tea party.

highlawn.bsky.social•190 days ago

The real "suckers and losers".

thiccofferman.bsky.social•190 days ago

Wasn't this the plot of Margin Call

jekllnnhide.bsky.social•190 days ago

stellagarp.bsky.social•190 days ago

this is the loveliest feeling

amphibiouscat.bsky.social•190 days ago

It’s so funny!

bakerdphd.bsky.social•190 days ago

This is a warm bath with the flavored epsom salts! Just luxurious.

tarw.bsky.social•190 days ago

These loans should have had some conditions built in on Musk's behaviour - at the very least to always act in the best interests of the company

The value of X is now around the value of the loans according to some reports

With advertisers and users running for the hills the value will drop further

tmoney2007.bsky.social•190 days ago

Nah,... I like the banks being punished too.

tarw.bsky.social•190 days ago

Interesting to see how this pans out.

If Musk needs to sell Tesla shares in that volume to repay the loans, Tesla stocks will fall in value

tarw.bsky.social•190 days ago

What are the odds that Musk will use the X platform as much as he can to influence November's election and then fold it leaving these banks in a mess?

naggingcoronet.bsky.social•190 days ago

He could. But Elmo has been using X to court fascist dictators to make him richer, presumably with side deals using hidden payoffs. Elmo wants Venezuela's lithium. But Maduro may finally be at the end of his string. Elmo wants to sell Tesla's in India, and is courting Modi with X.

plrock.bsky.social•190 days ago

Didn't he just get paid like 50 billion dollars by Tesla? Or is that all just in stock, so he'd have to sell it all in order to actually have the cash to pay back the banks.

matthewsp.bsky.social•190 days ago

As I understand it's structured mostly in options, and that shares he acquires by executing the options must be held for 5 years. He has lots of other Tesla stock, but some of that is already pledged as collateral for other loans.

matthewsp.bsky.social•190 days ago

Not to mention, if he moves to sell a big number of Tesla shares quickly he risks making the Tesla valuation tank. That can have ripple effects on his personal finances as well as for Tesla (and maybe his other ventures too).

bakerdphd.bsky.social•190 days ago

Most of the financial press I've been reading lately on this seems to signal that folks are worried that he will need to sell some tesla stock in order to pay some of twitter's bills. I kinda just figure someone will bail him out. Here's one article.

https://fortune.com/2024/08/15/elon-musk-tesla-stock-sale-twitter-x-advertiser-boycott-finances-bradford-ferguson/

edifiedlistener.bsky.social•190 days ago

I love this for us.

offdamountain.bsky.social•190 days ago

Just don't you dare make the taxpayer pay for it!

atcl.bsky.social•190 days ago

murrlin.bsky.social•190 days ago

Thats hilarious 😂

guiltypanacea.bsky.social•190 days ago

😢😢😢

tmoney2007.bsky.social•190 days ago

This just goes to show you... these people aren't smarter than anyone else. They're in the process of eating a multi-billion dollar shit sandwich because they didn't take into account that there might not be a greater fool for them to offload this bullshit onto...

bakerdphd.bsky.social•190 days ago

🎻

essaywells.bsky.social•188 days ago

Absolutely incredible that they lent Musk multiple billions so that he could buy a business that *doesn't make a profit* and now they're surprised and upset that they're not getting their money back. Amazing display of financial acumen from all involved, 10/10 no notes.

lorennacleary.bsky.social•190 days ago

Steeped in the goodness of Schadenfreude💜

theprocrastinator.bsky.social•190 days ago

A fresh pot of tea and a big slice of Shadenfreude.

theprocrastinator.bsky.social•190 days ago

And I misspelled Schadenfreude, while remembering that German nouns are capitalised.

andyjarrett.com•190 days ago

"...some of Musk’s public comments and tweets have made a sale of the debt more difficult for them given the resulting pressures on the business"

I hope at least one of the banks go under from this. I know they wont, but they need to learn to back these fools!

suestrong.bsky.social•189 days ago

Really enjoying this, added it to my collection 😁

jenebbeler.bsky.social•190 days ago

🎉🎯

erin-p.bsky.social•190 days ago

Ha ha!

peter-donnelly.bsky.social•188 days ago

peterfeld.bsky.social•190 days ago

"The resulting write-downs have hobbled the banks’ loan books and, in one case, was a factor that crimped compensation for a bank’s merger department, according to people involved with the deal."

Who says Musk never did any good?

rewhan.bsky.social•190 days ago

Bless u for the gift link, we should all be able to enjoy this delicious schadenfreude. 🍹

peebeejaybee.bsky.social•190 days ago

God, this'll be like having a slice o' cake with that cuppa - delish😋Thanks

peebeejaybee.bsky.social•190 days ago

Omg, just finished it. That final quote from the MUFG Bank:

"We anticipate reaching a positive outcome regarding repayment."

Pretty sure "anticipate" here is a synonym for "are shitting bricks about"

bakerdphd.bsky.social•190 days ago

It's clear the reporters found out they moved the loan to the "we ain't ever getting paid" section of the bank and they had to scramble up a reply as to ensure that apartheid clyde wouldn't yell at them

peebeejaybee.bsky.social•190 days ago

With a HUGE dollop of self-interest on the side, I'd say. No economist/mkt nerd, but I remember ENRON & how these things can change in an instant. If (when) Manbaby fails, they're all screwed - and no doubt DOJ investigations galore. Which is a thought I'll let linger on a wee while longer, yeah...

naggingcoronet.bsky.social•190 days ago

OMG. How 20+ years makes you forget. The Enron Scandal crashed everything. Not just the high-tech bubble, but the US economy & add a couple of terrorist hijacked planes literally destroying a trade center, and bad times for all. Right out of Ghost Busters, 100 days of darkness, mass mayhem...

peebeejaybee.bsky.social•190 days ago

The only thing capitalism lets trickle down is disaster