Yeah TSLA is dragging down the market today. Fascinating how that company is dropping its prices, trying to become a mass-maker of cars at lower price points, rather than a luxe product. Would be a giant triumph if it can get that done. As I understand it, I think they're trying to make EV credits apply only to US cars, which would help.
Today's prediction is another from the banking crisis last month.
This one is out of my wheelhouse so I'm not sure I am interpreting it correctly.
This poster noted that the credit default swaps of office REIT Vornado had blown out, suggesting the company's ability to service its debt was in question.
Since then the stock has risen 25%, implying that no, the company's ability to service its debt is not a serious question. Another example of having a fact correct but the stock market not caring about it. If you had shorted VNO based on this, you got your head ripped off. The CDS blowout was, so far, not indicative of a major problem, and showed people panicking unwisely.
That said, chances are 1/3 that I am misinterpreting this. I suspect Gente could clear it up if I have something wrong.
Steve Hou (“CONSUME LESS!”)
@stevehouf
Speaking of Commercial Real Estate, here's $VNO's CDS blowing out.