Financial Crack: Why Leveraged Commodity Funds Are Crushing Traders
(00:00.174)
lot of a lot of commodity speculators got wiped out, wiped out last week, getting wiped out this week, as well. I always equate these moments because I get the messages I get invited on programs, you know, it’s the old Johnny Vontaine and Godfather going in there whining, whining and Don Corleone, what am I going to do Godfather? What am I going to do? And he grabs him, smack him upside the head, you can act like a man.
What am I gonna do, Chris? What am I gonna do? What’s I’m down? gonna I did this. I mean, yeah, you’re gonna have to put your big boy pants on. You’re gonna have to grow up. Okay. What did you think was going could happen to you? If you’re bought four time leverage silver fund.
Four times!
Again, I don’t think they should be legal. And I’m a libertarian guy, okay? I’m a libertarian guy, but I don’t think that should be legal. You know, it’s interesting. You know, you want to go out and you want to buy a stock on margin with leverage, you got to put 50 % up. This is four times levered in commodities, in metals. What could possibly go wrong? How many times here on the program where I’ve talked about leverage? Leverage, what are the, Charlie Munger mentioned it, one of the easiest ways
for people to lose money is to lever up. Let me explain to you something again for the umpteenth time here on the program. And this is me smacking you upside your head. Okay? You’re freaking greedy. You’re freaking greedy. You don’t want to work for it. You want a quick and easy hit. You think you’re so damn smart. You’re to lever yourself up in your portfolios. Whack. How’d that feel? Grow up. Everything in life that I
(01:55.384)
Meeting value and worth involves work, time and effort. You’re getting crushed because you know what? Your ingredient’s stupid. Okay? Sorry. Shoe fits. Wear it. Take a good hard look at yourself in the mirror. All you people buying all these highly levered funds, they do them with stocks, they them with all sorts of things, and eventually you’re gonna get crushed. Why does Wall Street even allow, why do they create these things? Because they can.
Okay? It’s basically they’re selling you crack or heroin. Wall Street’s version of crack or heroin. Oh, things are going in the right direction. Woo! Look at me, look at me! I’m high as a kite! Woo! I’m flying! Yeah.
And it happens in the opposite direction when things go down, right? You got to crash. Wall Street will sell you anything if you’re willing to buy it. was actually a pretty telling scene in the big short when Christian Bale’s character playing Michael Burry is basically trying to create.
a security betting on the demise of the housing market. And they had that line and it’s true. We’re from Wall Street, we’ll sell you anything if you’re willing to buy it. And they will.
And they will. And you got to think about this for a second. The genius behind their business, because they don’t give an F. OK? They’ve all had ethical bypass at birth. OK? To them, this is just my job. I’m just giving them what they want. I’m just giving them what they Whatever. OK? So it’s a crack dealer. So it’s a heroin dealer. So they give them what they want. Right?
(03:50.456)
They create, wow, look at this. We’re telling people exactly what it is. We’re basically selling financial crack. A four times levered silver fund or gold fund or whatever flip it is. Doesn’t make any difference. They charge a fee, they put the thing together and they get paid. They get paid to, I mean, it’s genius quite frankly.
(04:16.174)
But you participate.
You buy it. How’d that work out for you?
Again, how long the shortcuts working out for all of you super smart traders out there, huh? yeah, you’re so smart. Sure you are. Wack, wack, wack, wack. People got crushed. And then the funny thing is, and then they go on social media, praying, praying for people to step in and save them from their position.
(04:50.702)
Again, try to get rich quick. Keep trying. See how that works out for you. Watchdogonwallstreet.com.
