Mad at Wall Street for the Wrong Reasons

Jen Ross, a former analyst at an all-short hedge fund and current strategy and business intelligence consultant for the US Space Force space program, primarily focused on program strategy and business intelligence. Jen Ross and Carol Roth break down all the technical terms around trading and short-selling and other related Wall Street concepts that have recently been in the news with the GameStop and Reddit drama. Jen and Carol also talk about the issues around the Fed and the broader Main Street vs. Wall Street sentiment, as well as their respective lists on what could tank the stock market.

Plus, a “Now You Know” on how to make sure nobody sits next to you on a plane.

Jen is also responsible for flight operations during National Security Space launches, which means she works with a team of engineers to ensure that the rocket doesn’t hit anything in orbit during the launch, and that the second stage doesn’t hit anyone/anything when it falls back down to earth.  

You can connect with Jen on Twitter @rocket_jenross.

Subscribe to The Roth Effect with Carol Roth in Apple Podcasts (and leave a 5-star review, please!), or by RSS feed. For all our podcasts in one place, subscribe to the Ricochet Audio Network Superfeed in Apple Podcasts or by RSS feed.

Published in: Economics
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There are 5 comments.

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  1. OccupantCDN Coolidge
    OccupantCDN
    @OccupantCDN

    Good talk. Very informative.

    I always thought that the CDO market was like fire insurance… Except you’re buying insurance for buildings that you don’t own. I think that the easiest way to straighten out the market is only issue CDOs to the owners of the securities they’re hedging against. The sad thing about the 2008 crisis, is that none of the underlying causes have been addressed. The fed just printed over the problems.

    There are a tremendous number of black swan events out there that could crash the dollar or even the entire western monetary and trade system.

    • #1
  2. MISTER BITCOIN Member
    MISTER BITCOIN
    @MISTERBITCOIN

    OccupantCDN (View Comment):

    Good talk. Very informative.

    I always thought that the CDO market was like fire insurance… Except you’re buying insurance for buildings that you don’t own. I think that the easiest way to straighten out the market is only issue CDOs to the owners of the securities they’re hedging against. The sad thing about the 2008 crisis, is that none of the underlying causes have been addressed. The fed just printed over the problems.

    There are a tremendous number of black swan events out there that could crash the dollar or even the entire western monetary and trade system.

    capital reserve or margin requirements are too low

    it’s like naked short selling – the number of short positions can’t exceed 100% of float 

    We have laws that regulate insurance, derivatives, shorting, etc… the bigger problem is the SEC’s policy of selective enforcement

     

    • #2
  3. OccupantCDN Coolidge
    OccupantCDN
    @OccupantCDN

    MISTER BITCOIN (View Comment):

    capital reserve or margin requirements are too low

    it’s like naked short selling – the number of short positions can’t exceed 100% of float 

    We have laws that regulate insurance, derivatives, shorting, etc… the bigger problem is the SEC’s policy of selective enforcement

    For the larger firms the reserve is largely an illusion. Why have any reserve, if you get into trouble the Fed will print your way out of trouble anyway. Get all your money into the market – maximize profits today shareholder value today. If things go wrong the fed has your back – if things go disastrously wrong the tax payer will be left holding the bag.

    Selective enforcement is why Bernie Madoff was able to skate for so long. Nobody reviewed his returns or gave his funds any scrutiny at all for decades.

    • #3
  4. EJHill Podcaster
    EJHill
    @EJHill

    OccupantCDN: If things go wrong the fed has your back – if things go disastrously wrong the tax payer will be left holding the bag.

    • #4
  5. MISTER BITCOIN Member
    MISTER BITCOIN
    @MISTERBITCOIN

    OccupantCDN (View Comment):

    MISTER BITCOIN (View Comment):

    capital reserve or margin requirements are too low

    it’s like naked short selling – the number of short positions can’t exceed 100% of float

    We have laws that regulate insurance, derivatives, shorting, etc… the bigger problem is the SEC’s policy of selective enforcement

    For the larger firms the reserve is largely an illusion. Why have any reserve, if you get into trouble the Fed will print your way out of trouble anyway. Get all your money into the market – maximize profits today shareholder value today. If things go wrong the fed has your back – if things go disastrously wrong the tax payer will be left holding the bag.

    Selective enforcement is why Bernie Madoff was able to skate for so long. Nobody reviewed his returns or gave his funds any scrutiny at all for decades.

    In 2008, TARP was completely unnecessary. We have bankruptcy law (chapter 7, 11, etc) that handles businesses with toxic assets. A financial matter became a political football once Congress intervened

     

    • #5