In the movie The Big Short, do the investors purchase the mortgage bonds from the banks and then have them insured with credit default swaps? Or did they just purchase the credit default swaps without owning owning the bonds?

In the beginning of the movie, Dr. Burry walks into the bank and wants to buy credit default swaps on the banks mortgage bonds. I'm trying to understand the process. Dr. Burry states he wants to purchase 100 million in default swaps at the first bank for example. I understood the transaction like this:

He pays 100 million up front for mortgage bonds, and has them insured by paying additional fees if the bonds increase in value over time.

I became confused with the process when Dr. Burry stated he wanted to buy "Credit Default Swaps on the Mortgage Bonds." Wouldn't he need to purchase ownership of the bonds before he could have them insured? Or do credit default swaps work in a way where you can bet against these bonds without having to take ownership of them and just pay the premium fees, which is whatever the bank charges?

Please explain Dr. Burry's 1.3 billion short position. Did he pay all of that at once, or is that the amount over time he'll pay on the premium fees? Or is it the amount he paid for the mortgage bonds all together which doesn't count the premium fees that will be paid down the line?

massive dilution coming. the private company is about to own 75% of the Fully Diluted Equity, which is newly issued stock and many of the direct investors will get a large portion of this 75% chunk at very low prices. if you really want to invest in this trash, get out now and wait for it to drop, then buy at the lows.

Ew! Ketchup everywhere, all over my weiner! Need relish!

these type of plays are precisely why i'm thinking about eliminating this buy and hold strategy and sticking to my PDT's, buy sell first day on specific patterns. this sub-penny trash is where most of the scams happen.

It was a rumor I heard in an Investors Underground chatroom.

obviously. but it's hard to say what happened. the whole thing is fishy. i definitely agree this situation needs to be reported. i'm sure some pissed of shareholders who lost a great amount will do everything they can to help initialize this investigation.

maybe UHLN had no intention of seeing the deal go through in the first place. They could have colluded with traders, had them accumulate shares before the announcement and split the proceeds from profited shares. UHLN could have went into the deal knowing it was going to fall apart because they didn't have the resources or capital needed to make it happen. basically they could have screwed us all over and made it look like CG's fault.

however you seem to be leaning in the direction of UHLN because you're claiming that "reasons for terminates weren't legally cited" by CG. You do realize the initial and only announcement about the cancellation was through a Facebook post? Do you think the person running that Facebook page is going to know the exact legal terms for why it was terminated?

I don't think so, but they for sure know that the deal is over. We just have to wait for further information from people who can actually let us know the exact legal reasons. My point is, CG are definitely not stupid enough to announce an agreement cancellation without proper legal reasons.

Look at UHLN's track record in the past. They obviously screwed this up. I find it hard to believe CG's facebook page released that statement unless they were tipped off by the owner and/or higher management. I'm quite sure they have lawyers who found a way to break the agreement.

I'm betting my money on CG here, and I think the agreement has been terminated. They wouldn't issue this statement unless they found a surefire way to end it. That's idiotic.

We don't even know what the agreement was. We literally know nothing. The original press release stated UHLN signed an "agreement". Until we have seen the agreement, there's literally nothing you can say which is true. You're just blindly speculating.

I will say that in M&A's there are usually termination clauses that allows one party to step away from the deal if the other party has not met certain conditions within the agreement. My guess is when the owner of CG found out about his wife and Everett Dickson, he immediately went to his lawyers and found a way to break up the deal. UHLN has a horrible business track record in the past, and they most likely effed up, in addition to the adultery committed by UHLN management.

I'm hearing rumors that Everett Dickson banged the wife of CG's owner and that's why the deal is off. Someone in a chatroom is claiming to have direct knowledge of why the deal went awry.

I still think CG originally posting about a "sales transaction" between them and UHLN was illegal. That was the basis for why most people invested their money. If anyone is liable or should be sued it's them. UHLN didn't post any public information or press release regarding a possible acquisition.

uhln really screwed this deal up. they probably were wanting too much of a stake. greedy bastards can't settle for a small win

says who?

https://seekingalpha.com/pr/16905793-chf-solutions-commences-manufacturing-transition-aquadex-flexflow-system-minnesota-facility

the flash bid was just there as bait so people slap the ask at .0003's and these guys take their one tick flip profit $$$

don't buy into the hype, play the price action. just because this company did a business deal with a billionaire doesn't mean anything. The guy has had some troubles with his businesses as of late, and he's made some very poor decisions.

http://medcitynews.com/2017/06/can-patrick-soon-shiong-silence-critics/

That site is BS. They don't even have RETC, PGSY, or ENVV anywhere listed, which have been the biggest pumps that crashed recently in the past few days. I banked on RETC after dip buying the dump then it bounced and I made 40%.

what pump site?

Which promo firm had the most impact do you think? I got 4 or 5 of the awwi picks in my inbox from different firms.

I'm reporting NITE to the proper authorities for investigation. Some of these MM's have too much damn power.

epxy so much loading every other day its ridiculous! gettin' ready for the next pump

what is it with you and starbucks? i'm not old I don't drink coffee. I drink redbull, i don't have to worry about my blood pressure at all.

until i saw the games being played here and i realized this is trash

news?! coming from a CEO who was absent for the last 2 years and left his shareholders in the dark without any updates? Sounds good! We should trust this guy, totally.

that's what they want u to think. in reality this is most likely dilution!

add 3 more zeros to that bud.

dscr going to .0001 watch out!!! you have been warned

DSCR going back down to .0001 book it

too risky get out now imo

whacking those .0003's! time to get outta this pos!

Nope! its just flippers, i don't have anything on the ask. i'm about to whack the bid at .0003's and get outta this pos. i don't like the action here. it's too riskY!

Look at that ask stacking at .0004! This is a pig! Pigs don't fly...what a piece of trash this is!

Lies! whack the .0003's! Do it!

where's your proof ? guy is presumed dead for 2 yrs and all of the sudden comes back and will lead a corporation? lol pls. might as well whack the .0003's and get outta ur position. let the hopeful keep dreaming in unicorn land.

runs over tbh. been holding this since it was selling those .0002's few weeks back. the pr was fluff to sell shares

looks like the run is over. oh well i'm still up 150% or 100 if i sell at .0004

33% of the 250 mill were .0002's, rest were .0003's i have the vwap for that day

which MM's are on .0005 ask

i'm on mobile, if someone would be so kind as to send screenshot of L2. my platform is bugging