The Bitter Man Who (Accidently) Invented Short Selling

[@HowHistoryWorks]

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[@Phosfit]

Erie Canal history?

[@ecoideazventures6417]

Major spelling mistake at @8:05

[@Rhombohedral]

One of his descendants looks totally like Isaac Le Maire See "De wondere wereld van kunstenaar Cornelis Le Maire" and more on his finished works at his birthday "Cornelis le Mair 80 jaar. Meesterlijk Stilleven." here on KZbin = he is a Dutch painter. Specially when he was younger he is a total incarnation of his ancestor ,as 4 months ago Cornelius Le Mair turned 80 years young and he basically literally lives his life as if it would be the 16th-17th century, as in he is very eccentric. his surname is written slightly different yet I do think he is a descendants of the same le Maire family. Over the centuries the same family easily can have their surnames differently written. But I would like to know for sure My eccentric Dutch painter is family of your eccentric Isaac. And Isaac had a brother named .. Cornelius. another reasons they might be family , as southern Dutch catholic families tend to name their offspring to family member over the centuries. Even so French catholic families emigrating to the southern catholic Netherlands .a such I Am quite sure Cornelius Lem Maire is of the same family of your isaac and Cornelius. Cornelius is the Latin name of the Dutch name Cornelis . and Dutch notary's and government tend to use the latin name on official documents like birth certificates and passports.. My tip for the day is google Cornelis Le mair video's about the man, you won't regret doing so.

[@SaintGGod]

Hating is a form of art

[@aspensulphate]

One might even call it an art form.

[@CG-yq2xy]

"Hey, if people aren't mad at you, you're doing something wrong." -Riley Freeman

[@weswest8666]

Not having short sellers is like hiding the thumbs down button. Toxic positivity only!

[@highbread817]

Fantastic way to put it If a company is doing well, they should invite short sellers to come. That liquidity gets baked into the share price imo

[@Mix1mum]

Or we can stop treating the economy like a craps game. Derivatives, etc are all akin to prop bets. You can make or lose a lot betting the prop but for some reason, the players that consistently win, never touch it. Straaaaange.

[@highbread817]

@@Mix1mum a short sell isn't a derivative...

[@Mix1mum]

@@highbread817 im aware, hence the ETC

[@highbread817]

@B_Van_Glorious one more thing Derivatives are a tool. They can be used for speculative bets. But the other side of that are people like ranchers, oil companies, farmers, utility companies, etc. All use derivatives to protect themselves from economic risk. Blanket statements implying they're all gambling is just wrong. The speculators smoothe out price fluctuations overall. They mostly lose money, and that gets distributed to pensions and shareholders across the globe. I'm all for regulating derivatives in order to make their risks more transparent and restrictions on putting large amounts of money on them

[@EphReinhard]

We seem to think modern commercial law is British, but more and more we learn the Dutch were centuries ahead of everyone.

[@jdj8168]

It is actually incredible once you find out just how much they have been punching above their wait for centuries.

[@jerrysstories711]

3:48 I think you meant, "There was no reward without risk." Risk without reward is easy to find!

[@Thaihandmade-wd9mh]

No, he meant it that way. Every risk he had taken to date had been with great reward so he didn't see risk as having potential loss.

[@zrebbesh]

My problem with futures trading in general, both short and long, is that it creates a class of people who stand to benefit from disinformation.

[@ethanlai1044]

Yeah, but isn't that true for every single act of commerce? You always want people to be misinformed, to over-value what you are selling and undervalue what you are buying. This is why we have consumer protection laws and insider trading laws to level the playing field. this is also why stores don't advertise how much they bought their inventory at and why you always pay for an inspection before you buy a house, or pull the Carfax before you buy a car. It is the duty of the individual to accurately appraise the product at hand and the duty of the government to make it as easy to appraise as possible, leading to efficient markets.

[@makeyourich992]

@@ethanlai1044damn ur a nerd but I appreciated this so much

[@appropriate-channelname3049]

Normal traders stand to benefit from disinfo to. Like wow this Enron company is amazing never stopping this thing. Or wow Nikola just showed off a working electric semi truck my stock in them just went to the moon.

[@maxwellschmidt235]

This is why extreme libertarian anti regulatory positions are looney toons. Their theories depend on rational actors, while we can empirically see that RAM is a rare state for people to be in.

[@M-dv1yj]

@@ethanlai1044so much is wrong with what you said. To its core. Other than personal responsibility. The rest 😂😮

[@stevojohn]

Newton defined rather than discovered gravity. Anyone who has thrown anything in the air or fallen over has discovered gravity.

[@ftorididk4198]

Gravity literally didn't exist before 1687

[@lightfeather9953]

I don't think you understand how language works here. Discovering "gravity" obviously doesn't mean that. "Gravity" is obviously shorthand for the Newtonian theory of gravity. Do you understand that words meaning can differ depending on context?

[@kpuff8282]

The only people that are upset at short sellers are the people that want to blame someone else for their own actions

[@Robynhoodlum]

This is all interesting, but short selling didn’t cause the 2008 crash. Mortgage backed securities developed in the 70’s and 80’s inflated by speculation did. The shorts were just a way to bail out the sinking banks, it wasn’t the cause of the breached hull or gushing water.😂

[@dkennell998]

Bravo! Excellent vid, great choice of subject matter. Amazing story, and I learned so much. The dutch in the age of exploration were really so fascinating.

[@TQFMTradingStrategies]

Short selling comes from contracts for delivery which are arguably some of the oldest commercial deals humans did. We forget that money and metal used to be almost directly convertible to a degree. It seems weird now mostly because we no longer use commodity based currency. But back in the day you would literally borrow copper or silver or gold and sell it to turn into another good, which if that good increased in value relative to copper or gold that good could be sold and turned back to gold which you return to keep the difference. Profiting as the value of the asset you borrowed gold declined. See how that works. But value is relative

[@lastspring]

The fact that you used log scale on the VOC portfolio 9:38 adds so much credibility to your research.

[@ceceking100]

I will rent a house and sell it.

[@highbread817]

Good business plan, way to cut inventory costs!

[@Nthsey]

Just make sure to buy it back before your lease is up or your landlord will raise hell!

[@honor9lite1337]

If only by renting you've got the house's document ownership.

[@BertieJasokie]

*borrow and buy it back is a better way of putting it.

[@WatchDeggySF]

Actually, kinda brilliant for these cities where there are so many empty homes just being held by investors. Get under the table rent scheme going and although illegal I know this could work in SF and likely some other major cities

[@zenastronomy]

short sighted logic. short selling helps the rich avoid liability by dumping stock and winning on both the bull and bear markets. someone always is left holding the bag, short selling allows market manipulation by the big boys. gamestop was a one off. the other 99999 million times short selling led to 2008crisis and all the rest. leaving tax payers holding the bag.

[@relatively_random4903]

Good points, but even if short selling didn't exist the big guys could profit during the bear markets because they can just sell normally. They should have the stocks on hand since they're big. They wouldn't be able to use leverage though. To me, it seems like it's leverage in general which fuels bubbles and crashes, whether it's on the long or the short side.

[@zenastronomy]

@@relatively_random4903 the owners of a stock will not want to reduce the value of a stock. why would you want to bankrupt your own company and reduce your own stocks value? so they won't deliberately spread rumours and then sell it for a loss. very stupid and risky game sure if they think it is a bad company, then they will sell it. but then after that they won't care and won't rebuy it. and whoever bought it, will try make the company strong again. only short sellers are motivated to destroy a company to the point of bankruptcy. As the lower the company goes the more they make. A group of people motivated not to make a company profitable, but the exact opposite. So you end up creating a rich class of people who's sole business motivation and plans of action, is to destroy companies. Unlike the scenario where somebody just sold normally as they thought the company was bad and then never bothered with the company afterwards. By allowing short selling especially naked short selling, you create more evil traders and more market manipulation. Ppl who care more about manipulating the price of a stock through fair means or foul, rather than investing. the objective of the stock market is not to make traders rich, the objective is for it to help the market work efficiently. that means companies being priced honestly and fairly, bringing honest investors and honest businesses together etc. And not allowing such market manipulation.

[@ar_ytb]

2008 wasn’t caused by short selling. It was caused by crap bonds being classified and sold as good bonds. The short sellers only saw it coming before everyone…

[@zenastronomy]

@@ar_ytb go do research on how short selling made 2008 a million times worse. and yes garbage mbs was the cause, but short selling allowed the banks to play both sides of the trade and made it a million times worse. this is one of the reasons why it is so bad. As banks and hedgies are not beholden to the consequences of their actions, as they can always dump it on retail traders, pension funds, governments etc. Short selling allows rich to manipulate prices, which creates fraud in prices and markets.

[@boeingotaku3723]

Channels like these are always better off underrated!!!❤

[@ecoideazventures6417]

Dont worry, most timepassing viewers would have seen this but passed it over

[@xcw4934]

Short sellers play an important role but the most important regulation mentioned was that claims that would hurt the company must be supported with actual evidence. If we go after company directors for fraud when they deceive the market about how great their company will be doing, we should similarly penalise short sellers fraudulently talking down the prospects of a company.

[@ronblack7870]

yes that would be great . remember cramer giving an interview, like 20 years ago, about how he would start a rumor to drive a stock down when he needed it down. somehow now short sellers are insulated from sec

[@yudistiraliem135]

Short selling a good or even decent company is suicidal. In tug of war short sellers would lose 99/100 of the time. You don’t even need to have good amount of money, you just need to not needed to use the investment money.

[@zenastronomy]

this is absurd. for every short seller there is someone buying the trade. so you are not doing anything except adding more chaos and liabilities to the market. which is not good.

[@zenastronomy]

​​@@yudistiraliem135short sellers don't need to bankrupt a company. majority of the time short sellers are just price manipulators. they pump and dump, then borrow and short sell. doing both they manipulate market prices creating chaos in the markets. making money on the up and down markets. there is no benefit and all harm. it is purely market manipulation to profit from manipulated artificially created price discrepancies.

[@xcw4934]

@@zenastronomy But then every long buyer is finding someone who is selling and therefore they're adding volatility as well. Should we just scrap markets entirely?

[@The_Scriptwriter]

Lesson: You don't need to fight every war. Know which one to avoid and which one to fight.

[@brianmaluleka9189]

He was ahead of his time

[@davianoinglesias5030]

Without short sellers banks would print infinite amounts of money to support the ever increasing demand for loans as people borrow to invest in the stock market

[@tomlxyz]

Only the central bank can make infinite money

[@davianoinglesias5030]

@@tomlxyz commercial banks print money too

[@relatively_random4903]

​@@tomlxyztldr Sort of kind of but not really in this case. Central banks print cash, but that's negligible in today's economy where almost all money is bank account balances. Those balances are private money printed by private banks. Each time a bank issues a loan the money is created, and each time a loan is repaid the money is destroyed. Regulation does give central banks the power to constrain private money creation by controlling the supply of bank reserves. These days, they don't directly control the supply of reserves because that's difficult to pull off, kind of the same as why planned economy never works for long. Instead, they control the price of money. They set short term rate targets and then dynamically adjust the supply of reserves to keep real rates at that target. This indirectly controls how much money banks will be eager to create or destroy -- the higher the short term rate, the more profitable a loan needs to be to be worth it for the bank (i.e. less risky or with a higher interest). The problem is when people start taking loans to buy investments, which then raises the price of the investment, which looks like profit to both the investor and the bank who will be more eager to create a new loan and then print more money to pump into the same investment. That's how you get bubbles and the central bank can't do much except raise rates so high that those loans become unattractive. But then nobody is going to be able to get a loan for anything non speculative because it's not worth it at the high rates which were adjusted for the insanely highly "profitable" bubble. Maybe separately regulating loans meant for speculation would work but I don't know how doable that is.

[@paulflocken2730]

Only by the permission of the central bank. ​@@davianoinglesias5030

[@clockworkvanhellsing372]

​@@tomlxyz check out prof richard werner on how individual banks create money.

[@gtbkts]

Thanks for the awesome content and all the amazing videos!!

[@philipramirez5406]

Wait... But the retail traders weren't the ones shorting. Citadel lost their money because people just kept buying more stock and holding. I don't see how shorting is a tool for common investors when you're exposing yourself to infinite losses.

[@TheMysteryDriver]

Because you don't need the money to short sell. It's literally free to do. So you can borrow someone's stock, sold it and promise to buy it back for them at a later time. If you borrowed $100 worth, sold it for $100 and then a month later the stock cost $60 you now have $40 you didn't before.

[@TheMysteryDriver]

But to address the infinite loss, odds of that are slim. You can also set auto buy back so you're not just ooops I owe people ten trillion dollars.

[@als4179]

Computers see thise orders and whipsaw them​@@TheMysteryDriver

[@aaron6806]

The video is full of these types of mistakes. The narrator needs to put in a bit more effort. Few of his definitions of financial terms were correct.

[@adcaptandumvulgus4252]

Glad warthunder is bleeding world of tanks of their players. They just need to keep the player abuse less than wargaming.

[@Rhombohedral]

One of his descendants looks totally like Isaac Le Maire See "De wondere wereld van kunstenaar Cornelis Le Mair" and more on his finished works at his birthday "Cornelis le Mair 80 jaar. Meesterlijk Stilleven." here on KZbin = he is a Dutch painter. Specially when he was younger he is a total incarnation of his ancestor ,as 4 months ago Cornelius Le Maire turned 80 years young

[@alehunter15]

Exceptional video, i really like the financial genre. Keep it up, pure class mate :)

[@samrichards1987]

17:42 he named it WHAT???!?

[@brycey2364]

I am so glad this popped up at the time mark.😂

[@jdj8168]

Cape hoorn. Named after Hoorn the birthplace of the captain

[@dimagass7801]

Shorts are too risky, I prefer inverse leveraged💀

[@relatively_random4903]

Isn't that basically the same thing?

[@guybrown8971]

Your missing the point...short selling is another market indicator...for example 2007/2008 shorting bank stocks was banned. .the US and UK governments would phone up barclays capital and try and ask anonymously "if you were to short a commercial western bank which one would it be" In other words,governments were left in the dark as to the next likely bank to fail...they had lost vital information. They would have gained by looking at loan/short spread. (Barclays would slam the phone down on them by the way).

[@TheMysteryDriver]

Ya I don't believe that about the phone calls.

[@kylehankins5988]

If you’re betting against your own industry to mitigate risk these kinds of financial instruments make a lot of sense. Other than that these financial instruments are probably unstable.

[@mq1995]

There is a typo at 8:11

[@mq1995]

another typo at 12:41

[@CryptoWinterSurvivor]

Dutch Dast India Trading Company, before everyone was thinking in terms of left and right

[@joshuavandenheuvel6065]

Hahaha as a Dutch guy it's really funny that he put a Spanish mill in the Dutch colony 😂😂😂

[@terrymcanalen3031]

Cannot have a Free Market without the ability to sell and go short

[@hansscheltema3348]

Short selling uncovers corporate fraud

[@sitrakaforler8696]

00:05 Isaac Lammer inadvertently created Short Selling 02:43 Isaac founded a successful trading company with lucrative ventures. 05:23 The rise and fall of ISAC La Mer, inventor of Short Selling 08:01 Creation of Dutch East India Company by Johan Von Oldin Barnavelt 10:34 Isaac's revenge plan against the VOC through manipulation 13:03 Inadvertently created regulation against naked short selling. 15:39 Isaac's revenge plot against the VOC through the Australian company. 18:07 Isaac Lir's bitter revenge and impact on business practices

[@JoeRogansForehead]

Brabant company ?! Like the Brabant killers

[@sourabhmayekar3354]

Nice

[@Hello-pl2qe]

If you know who owns 90% or more of all stock equities around the world, and also those who manage the largest funds, then surely you know who creates crashes in the market. If you think you own a stock because you bought one through the broker, look again. Most likely you hold no stock certificate at home.

[@mikolowiskamikolowiska4993]

So what do I own

[@Hello-pl2qe]

@mikolowiskamikolowiska4993 A used computer with an unsupported windows version.

[@theaquariancontrarian3316]

Jean baptiste colbert??? 😂😂😂 did he have his own late show and live band???

[@backroomserklärt]

Nice vid

[@Phosfit]

Erie Canal video?

[@tanner9956]

Bruh just wanted to get his get back lmao

[@charlesmcdowell9436]

The real Batman

[@stg213]

Isaac 🤔 Every single time...

[@zenastronomy]

short sellers don't need to bankrupt a company. majority of the time short sellers are just price manipulators. they pump and dump, then borrow and short sell. doing both they manipulate market prices to make profit, creating chaos in the markets. making money on the up and down through manipulation. there is no benefit and all harm. for every short seller there is a buyer. so where is the benefit? someone is always left holding the bag. so short selling adds nothing to the market except more market manipulation and price chaos. both of which are inherently bad for society.

[@SuperPlayz]

Seems like bro is still holding those FFIE 😂

[@TheMysteryDriver]

If people didn't want their shares borrowed (they can get interest from the borrower btw) they can tell their brokers.

[@zenastronomy]

@@TheMysteryDriver it doesn't matter if ppl are willing to do something. drug addicts are willing to do drugs. drunk drivers are willing to take the risk of driving drunk as they think they are capable. we write laws in society for the better of everyone.. market manipulation affects everyone in the world. not just the two ppl trading. do you know why we even have the little laws we do banning market manipulation, it's because traders would cause mass starvation by manipulating food and other essentials. market manipulation still causes huge harm to pension funds, 3rd world, people's savings, etc. It should be banned. simple as that.

[@financelearn7702]

Bro is promoting video games now 🤣🤣🤣 video games that grift kids with micro transactions You became a grifter yourself

[@aaron6806]

The narration and grammar in this video are terrible. Interesting story, needs work.

[@greatndit]

confusing

[@davidjackson7675]

22 kids from one wife?

[@bellemorelock4924]

Your numbers are like a chum bucket. You claim a Dutch Guilder to be around $20 today (but actually $15 and $22 in succession, only a couple years apart), then this: 09:31 Suddenly 78M Guilder is ... $8 TRILLION ?!?!?! Just before it was 1G:$20, now a few years later "at the peak" value of the shares, the conversion is 1G:$10,000! The value of a Guilder increased (deflation) by 500x in under 20 years (within charter)? HOGWASH! The (Human) population of planet earth was 5% of today, without indoor plumbing, etc. NO WAY! That much wealth would buy entire continents then. ALSO THIS: you say "in 1799" which is almost a century off the chart you show. And while that long could allow such incredulous deflation, that much deflation has NEVER happened, nor for that long a period, ever!

[@ricardopperez]

Yeah, that's incorrect, I've made a comment which was removed (maybe because I added a link to the source). The world GDP in 1700-1800, according to estimations, was something between $200 to $700 billions, THE WOLRD GDP. The correct calculation for the total market value for the VOC during its peak is something between $1 to $2 billion.

[@Phosfit]

Corn, our savior.

[@tipsyXtwo]

Yeah a tree growling “I… AM… THE LARGE COMPANY” just doesn’t hit the same

[@graham2631]

You sure it was an accident?

[@binder946]

OG of hater 😂😂😂😂❤🎉❤❤🎉❤🎉

[@okboomer6201]

"Merchant" is a code word for 👃 🇮🇱🇮🇱🇮🇱😂😂👃👃 🔥🔥🔥🔥💀💀💀

[@francescobuadu8912]

🤡💩

[@銀河のたろー]

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[@銀河のたろー]

SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.

[@銀河のたろー]

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