American Consequences - October 2017

is because the technology isn’t expensive, and it made life easier. Nearly everyone in Kenya has a mobile phone, and that’s all they needed. Not the latest iPhone or best smartphone, just a simple cellphone did the job. Re: Blue Apron’s Two-Sided Tale of Wall Street In order to short a stock, you have to be able to borrow it. How did ‘Luke’ manage to short Blue Apron on the initial day of trading? Who did he borrow the shares from? – Bob D’Angelo Turney Duff comment: Shorting an initial public offering (IPO) can be difficult because of the limited number of shares available to borrow. But it’s not impossible. What a hedge fund would do is call up their prime broker to request a “borrow” of that stock. Typically, a good-sized hedge fund could have two or three different prime brokers they use. And like most things on Wall Street – the relationship matters. They’d beg their prime broker to get a borrow on as many shares as they could. Then, they’d call their other prime brokers and do the same. Also, sometimes hedge funds can short stocks without the borrow. If they cover on the same day, typically nothing happens. But if they carry the position overnight, they get a call the next day and the process of a buy-in starts to occur. This usually results in a slap on the wrist and takes many days to become official so the stock might be lower before they are forced to buy the shares back.

Get Ready for an Oil Squeeze (Bad News for Oil Bears) The firm that

accurately predicted 2014’s oil crash from $100 to $40… And warned

that “Peak Oil” was a myth… Now says America is on the precipice of what could be the biggest oil boom in history. Click here to learn more .

Good news for Your Retirement Account

A new bill is moving through Congress. If you saved for retirement, you could

collect thousands in cash over the next few weeks. Get the details .

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