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Connor
You know, I don't really want to jump into the probable/plausable argument here, as interesting as it is, I just had a small thought that seems to have been over-looked in the discussion.

Art hired a boatload of financial guru's who were working independantly with their own set of funds. The guru who spills the beans somehow manages to put a few pieces together and extrapolates all the numbers (i.e. he's probably talking out of his ass with regard to them.)

He may have an idea what a few other guys were able to do, plus what he did, and figures a percentage probably didn't do so well and viola!

We all have to keep in mind that game information like this has to be taken with a grain of salt. Sure, we can trust what he says and figure Art has 10 trillion in the bank and is about to turn the lights off on Novatech. Or we can look at that Art's plan has had a string of good luck, but he's just scraping by on what he's been able to do.

I mean, if he had the resources the snitch says he has Art probably would have been more successful taking out Gunderson than he was. I've always figured that the snitch was a little generous in his estimates. That, and Art probably has all his assets tied up in things to bring down these corporations and what not. One wrong move and Art will be back in the BTL den.

Club
QUOTE (Charon)

EDIT : Yeah, I'm proud of that new comparison I thought of. The US budget is roughly two trillions. 1 874 billions in 2004 with a deficit of 445 billions to be accurate. The GNP of the US is about 11 trillions. Obviously UCAS is going have smaller figures.

Inflation. I can see the UCAS having bigger numbers, but not as much buying power.
Nath
QUOTE (Charon)

EDIT : Yeah, I'm proud of that new comparison I thought of.  The US budget is roughly two trillions.  1 874 billions in 2004 with a deficit of 445 billions to be accurate.  The GNP of the US is about 11 trillions.  Obviously UCAS is going have smaller figures.

QUOTE (Club)
Inflation. I can see the UCAS having bigger numbers, but not as much buying power.

US (circa 2004)
Population: 293 millions
GDP per capita: $37,800
GDP: $11 trillions

UCAS (circa 2060)
Population: 172 millions
Per Capita Income: ¥28'000 = u$112,000
Total Income: ¥4.8 trillion = u$19.26 trillions

Assuming the UCAS dollar was launched at the face value of a US Dollar at the time (2030), yeah, there was some inflation. We could imagine a budget for the UCAS around 1 trillion in nuyen, or 4 trillion in UCAS dollars. The UCAS figures can be smaller or bigger than those of the US, depending on the money you use (but since all the counts made for Art Dankwlather were made in UCAS dollar since the beginning of this thread, eh...).
Snow_Fox
QUOTE (Charon)
QUOTE (Kanada Ten)
Could Art have taken loans using the 20 billion as collateral - taken them without (or preventing) informing other banks that he's done so? And thus borrow 20 billion five or six times and use that to buy controlling stock in asset heavy corps? Gut those corps and do it all over again? And thus have trillions of dollars in available assets, but not actually own it (just control).


We wouldn't get into the trillions, but what you suggest is more sensible.

Yes, if you have 20 billlions in cash you can also use it as collateral to borrow even more.

This is actually possible, with one glowing point- due dilligence would have a bank looking to see if there was already a lien on the money- meaning bank #2 is less likely to give full balue to the loan, or will charge more interest than did bank #1. Bank #3 is even less helpful and so on. So you would need to either
A) hide the existing liens.
B) do some sort of nanosecond application (we're drifting into scifi here big time) so that each loan is done at the exact same momment so the trade doesn't show up.

Another option that just occurred to me was that he could have done what ENRON did, only not get cuaght- that is use his collatteral to set up dummy companies that then owe you mnoey, these show up as assests on your corp ledger when trying to borrow money, as long as no one finds out you also own the company that borrowed the money too.
Charon
QUOTE (tisoz @ Feb 27 2005, 01:38 AM)
Art buys 20 billion worth of seemingly worthless put options selling for .005 nuyen each.

Show me a put option market that can absorb purchases of 20 billions for a single title. Then describe the run that could single handedly drop the value of that title by 10$ in a few days considering that, if such a title exist, we obviously have to talk about a corporation that is as big as SK at least. Except SK doesn't trade publicly, of course.

Let's say Shiawase. Let's imagine the secondary market on Shiawase stock can absorb a billion worth of purchase in put option (I refuse to consider 20 billions!).
Anyway, such a huge corporation would know that something is wrong. Maybe Art used hundreds of intermediaries to hide his involvement. Still, Shiawase is not stupid and keeps an eye on its own stock. They'll notice the increased spike in activity. Not being dummy they will immediately realize this is no random occurence and suspect that a group of people, or maybe a single individual, is expecting their stock to fall. It's kind of what MIFD exists for. And suddenly big trouble start for Art. With one intermediary, he'll be spotted immediately (look, "that guy bought a billion's worth!") and hundreds will each be harder to track but are probably overall an even greater risk. Somewhere, it's inevitable that there is a weak link in the chain. Art will get killed. Even if the operation succeed, Shiawase won't stop looking. For someone manipulating their stock, they will never stop looking. And the money trail for such a big sum, incoming and outcoming, will be certainly within the abilities of a megacorp to follow.

---

Look, I get that money can be made that way. And you're lucky to have had to occasion to see it in action. But don't tell me your corporation was making trillions in six months that way. Each distinct occasion absorbed an investment of, what, 10 milllions, 15, 50? Not 20 000 millions, I'd guess.

I said it before, the bigger the investment, the harder it is to make a killing with it. With 1000$ I can double it in an evening playing power. With 20 billion, it's another story.

What people don't seem to grasp is the scale we're talking about. 20 billion in UCAS dollar is a Bill Gate-like fortune that exploded into a cartoon like fortune. Bill Gates investments don't double every month like those of Art Dankwalther apparently did.

Trillions, guys, TRILLIONS. And in secret! Even with the UCAS dollar being a wek money compared to Nuyen, it's still non-sense.
Snow_Fox
More than that, if you purchase a set percent of a company, you must report it to regulator agencies- the SEC today, maybe the Corp Court in 2064 but still someone has to know. If you don't report it, well, I'm sure youn can get a bunk near Martha Stewart.
Nath
To give people an idea:

The biggest volume on a single title on New York Stock Exchange last friday was Exxon Mobil, 37 millions shares exchanged, a total worth of $2.3 trillion (of course, there are double count, a lot of those shares have been exchanged several times that day). The best differential you could do was $2.5 per share (buying at opening and selling around 14:15), a 4% gain. That was a big day since the average over the last three months was 12 millions shares exchanged each day. Exxon Mobil total market capitalization is 6,451,300,000 shares, weighting at the current value $408 trillions (institutional 52%, public 47%, insiders 1%). In other words, less than 0.5% of the existing shares were exchanged during that day.

Other stock makes a lot less, a volume between 500 and 700 billions for big names such as Citigroup, Pfizer, Wal-Mart or ChevronTexaco. Total volume (still with double counts) on NYSE was at least 6 trillions (very rough estimate). But friday might not be a good example, end of the week, all that.

(note that a 4% gain each working day, with every penny we own -I'm not saying this is possible- would turn 20 billions into 2 trillions in 6 months)
Shockwave_IIc
I think it's been touched on already but can't make money Via Currency Exchanges? I seem to remember in Corporate Shadowfiles that the Mega's had Departments that did just that, Borrowed Stupid amounts of money for 10 Secs did some kind of Currency Exchange, and made loads of money out of thin air. I think the book called it Arbatage or something
Nath
Arbitrage
Charon
Yeah, I mentionned it myself earlier.

You could make lots of money, not trillions. You need to be able to anticipate correctly the monetary market and bet big when you expect it to plunge or soar. As I said, fortune have been made that way, but not trillions and not every months since that kind of occasion do not come along every week.

Nath : Interesting. I didn't realize that Exxon had such a huge volume of stock flying around. As you said, doesn't make the 20 B -- 2000B translation possible in 6 month.

If corporations, banks and legal billionaire with legions of crack financial analyst (and expert financial SKs in the case of Shadowrun) can't succeed in consistently beating the market by more than a few points, I don't see how Art would do it from deep within his cave.
tisoz
IMO whoever wrote the piece looked at that 4% daily return Nath pointed out, figured Art is a guru that can do this with his entire fortune because he is setting up runs to influence the market and capitalize on the changes.

Charon, I agree it is farfetched. But you keep wanting to think he is trading in one company or having one shadowrun happen at a time. What is keeping him from having thousands going at a time? You also need to get over the idea of the US economy or even the entire US stock exchange. They are Megacorps, the biggest current corporation is a trifling subsidiary in their scale of things.

Arbitrage, as I am familiar with it, involves seeing different markets where an imbalance exists and making risk free trades. Say oil is selling for $50 a barrel on the New York exchange and being bought for $50.25 on the Chicago exchange. A trader could implement an arbitrage deal with no risk by buying on one exchange and selling on the other until the imbalance corrects itself.
hahnsoo
Art is also not bound by retaliation from an Omega order, at the moment, which is the one thing that prevents most AAA and AA megas from destroying each other outright.
Charon
QUOTE (tisoz @ Feb 27 2005, 07:36 PM)
IMO whoever wrote the piece looked at that 4% daily return Nath pointed out, figured Art is a guru that can do this with his entire fortune because he is setting up runs to influence the market and capitalize on the changes.


That's what I keep hammering : Dankwalther the ex-beetle head don't have any particular edge over any other investors. His financial gurus are no more magicians than everyone else's gurus. If turning 20 billions into 2 trillions overnight is possible for him, it's possible to everyone. Yet no one else does. Why?

QUOTE
Charon, I agree it is farfetched.  But you keep wanting to think he is trading in one company or having one shadowrun happen at a time.  What is keeping him from having thousands going at a time?


I keep using the single investment example because it's the only way to beat the market by a large margin. If you diversify significantly, your rate of return will be roughly that of the market. If you're damn good, you'll beat the market by a few points, top.

Consider playing head or tail : If you play once you have a 50% odds of winning 100% of your bets. If you play 1000 time, belive me, you'll be damn close to winning 50% like everybody else who tosses a coin a thousand time.

QUOTE
Arbitrage, as I am familiar with it, involves seeing different markets where an imbalance exists and making risk free trades.  Say oil is selling for $50 a barrel on the New York exchange and being bought for $50.25 on the Chicago exchange.  A trader could implement an arbitrage deal with no risk by buying on one exchange and selling on the other until the imbalance corrects itself.


Yes, and the unbalance closes down freakishly quick nowadays, if they even happened. Information age and all that. In SR, with the Matrix, arbitraging legal goods could very well be dead.

The kind of arbitraging I saw in my classes usually involved interest rates and currency exchange. If the exchange rate between nuyen.gif and $ is out of balance compared to interest rates offered in Japan and the US, you could, for example, borrow $, convert them into nuyen.gif, deposit in a Japanese bank and then withdraw 6 month later to convert back into $ (presumably with a future contract). It's risk free if you act fast but there's not a lot of money to make that way. You don't make a fortune with these tricks. You already need a fortune and then manage to make some spending moneyt off it without risking the market.

QUOTE (Hanshoo)
Art is also not bound by retaliation from an Omega order, at the moment, which is the one thing that prevents most AAA and AA megas from destroying each other outright.


It's never a good thing to be the only one outside looking in. Translation ; he is the only major economic powers not protected by the oemga orders. He's fair game to anyone who can find his assets. And damnit, trillions in assets are not hard to notice.
toturi
QUOTE (Charon)
That's what I keep hammering. Dankwalther the ex-beetle head don't have any particular edge over any other investors. His financial gurus are no more magicians than everyone else gurus. If turning 20 billions into 2 trillions overnight is possible for him, it's possible to everyone. Yet no one else does. Why?

You keep thinking Art, Ex-BTL user, when you should be thinking Art, instrument of Big D. Look, he was a BTL user who had a former rep in the financial world for reliability and thoroughness and was for at least 2 years. And he managed to quit (abet with the help of DF) and subsequently filled with the desire for vengeance.

That tells me this: He has high willpower and perhaps body (he is an ex-addict and there has been no reports of a relapse). He has high financial skills, but not necessarily more than other gurus, but he will be no push over. And he will not be hesitant to burn/spend his karma for his revenge. So if he thinks he needs more money, he goes Karma for cash. The TN is too high? He burns some Karma to bring it down. He has only a single overriding goal: To destroy Novatech. There has been complaints of PCs with a lot of Karma being nigh invincible. You might want to consider that maybe the Big GM in the Sky decided to give Art a ton of Karma and he's not afraid to burn it all.
Charon
He got his trillions by burning karma? That's your explanation!?

Might as well not explain it all and hope no player asks.

For me, as I said a few post earlier, I'll just cut a few zeros from Art's fortune to get it out of la-la-land and back into I-can-suspend-my-disbelief territory.

PS : I *AM* the big GM in the sky. grinbig.gif
toturi
Not by Canon, you are not. There are 2 GMs in fact, Randall Bills and Mike Yates. And maybe the exchange rate between cash and karma are not the same for both ways. Oh, by the way, you should go read Ripley's Believe it or not more often. Truth is sometimes stranger than fiction.
Charon
No really, I am.

I drive a flying GM car.

And as a matter of fact, I should be on Ripley's believe or not any day, now.
Snow_Fox
I'm glad you can suspend your disbelief in ultra inflated bottom lines and get back to the serious work of cyber enhanced troll shamans, firing 20mm autocannons from the back of a motorcyle.
Sandoval Smith
QUOTE (Snow_Fox @ Feb 27 2005, 09:26 PM)
I'm glad you can suspend your disbelief in ultra inflated bottom lines and get back to the serious work of cyber enhanced troll shamans, firing 20mm autocannons from the back of a motorcyle.

That makes sense, within the context of the game. Art's unexplained trillions... notsomuch. Maybe he staged a daring robbery on Oribital Zurich while the guard was on a potty break.

*edit* I think I've lost track of who and what I'm arguing against. Laaaaa...
tisoz
QUOTE (Charon)
I keep using the single investment example because it's the only way to beat the market by a large margin. If you diversify significantly, your rate of return will be roughly that of the market. If you're damn good, you'll beat the market by a few points, top.

Consider playing head or tail : If you play once you have a 50% odds of winning 100% of your bets. If you play 1000 time, belive me, you'll be damn close to winning 50% like everybody else who tosses a coin a thousand time.

You kind of overlooked the point I was trying to make. I see why you are hammering at it needs to be a single investment. It is hard to beat the market while diversifying. But the majority of those involved in that market are following ethical business practices. Was I ethical in taking advantage of the stock price manipulation I was made aware of? Probably not, but I wasn't personally trying to manipulate the stock. I wasn't personally ripping of the stockholders of the acquired companies.

I think Art could do this with some big bucks. I also think he is executing many shadowruns concurrently and perpetually. Using downright illegal means to influence a stocks price. Art knows the shadowrun is coming, so he has no need to make a stock pick/forecast.

Consider your coin flipping example. It is like Art is playing with a weighted coin. He knows what side is going to come up the majority of the time.

In game terms, you said he slot BTLs, maybe he got a wickedly high knowsoft chip in finance.
Edward
There are ways to achieve such gains. However they are often immoral and or illegal, high risk and requiring a modicum of luck.

An example procedure would be to sell short on a valuable small corp. then hire shadow runners to destroy there assets. Works best against uninsured or under insured corps.

Also note that with billions of dollars you can affect the price of a stock. If you by a large portion of the transient shares the price will rise, and then sell short more shares than you have and sell all your real shares and the price will fall, you have maid money. In SR that trick can be cycled every 60 seconds or less.

I don’t have any real training in this field but I could be wrong. But I think that those tricks and probably a lot of others exist but are usually not performed because they are illegal market manipulation and would destroy the integrity of the money markets in the long term, would that stop this man.

Assuming every ten minutes he can manipulate the market enough to make 0.06% in 6 months he will have 5,650,961% on his initial investment, when your starting investment is enough to buy out small corporations and in an age where the market responds within a fraction of a second that kind of return doesn’t seem so far fetched. It isn’t producing anything usable, it isn’t working out witch companies are going to rise in actual value, its all about using your pile of money to manipulate the preserved value of a share.

Edward
Crimsondude 2.0
I don't really care how much money he has or doesn't. I do think it's a cool idea, though.
Charon
QUOTE (tisoz)
In game terms, you said he slot BTLs, maybe he got a wickedly high knowsoft chip in finance.

And nobody else does? It's you who keep overlooking my points.

Please, I hope no one gives me another "Dankwalther is special and can do what no one else in the world is able to do" argument. Even Lofwyr isn't that special.

Your example wasn't one of diversification. You had insider knowledge in one title, not thousands, and it didn't result in the insane growth rate I calculated earlier for Art.

As for making shadowruns to manipulate stock, they take time and money. Lots of money if you need a team good enough to pull a seamless job that has a chance of influencing stock without blowing up in your face.

Plus, if you make one run per investment, your investments have to be major or the cost of the run eat the profit of the scam. Say a good team is paid 60K a member, 5 member, it's 300K. Cough up another 100K for the intermediaries used to locate the team. You can't be investing a mere 5 millions if you are to make a 400K run pay for you. You need at least 10 millions or more. But the run won't always succeed. Worse, it could succeed but be tracked to you. If you invest a large sum just before a stock manipulation occurs, some people will look into it. Some will look into it very hard.

All in all, you could pull it off but there is a definite risk. A risk that is offset a bit if the planning is careful and investment done over a long period of time. But Art doesn't have time. He needs a trillion in less than 6 month. 6 month is the bare minimum amount of time I'd take to plan this kind of job once.

Now do that kind of rushed job of a manipulation a thousand times in hundreds of city... Back to the law of probabilities. It'll blow in your face something fierce somewhere down the line.
toturi
It did... That's why there's the chapter in Threats 2. Again you are missing the point. Art is not doing it to make a profit. He is there for revenge. The objectives are different. It is the guy's estimate that Art made trillions. Yes, you can say that is an exageration and the guy got caught up in a fit of pique. But the fact remains that he managed to get enough money to bring down a AA and is on his way to bringing down a AAA. He doesn't care that the runs are traced to him, he doesn't care about failure, he's not afraid to risk it all.
Charon
QUOTE (toturi @ Feb 27 2005, 10:29 PM)
It did... That's why there's the chapter in Threats 2. Again you are missing the point. Art is not doing it to make a profit. He is there for revenge. The objectives are different. It is the guy's estimate that Art made trillions. Yes, you can say that is an exageration and the guy got caught up in a fit of pique. But the fact remains that he managed to get enough money to bring down a AA and is on his way to bringing down a AAA. He doesn't care that the runs are traced to him, he doesn't care about failure, he's not afraid to risk it all.

I didn't say a corporation couldn't be brought down by someone with billions and no desire for profit. I even supported that notion in an earlier post. I argued that 20 billion was enough in the first place and that there was no need for baloney stories about a miraculous streak of investment doubling his wealth each month.

When I talked about risks, it was in relation to Art supposedly sponsoring runs to increase his investment while remaining in hiding until he was ready to strike. Non sense. It's very risky yet it is about making profit, not taking down Novatech. Kind of lame to get canned chasing nuyen when your real goal is to squish Villier and you already have the billions to do it, no?

So what are you arguing me about?
Sandoval Smith
Why is it that Villiers hasn't orbital cowed Art yet, anyway? I'm sure he's well hidden, but Villiers probably has just as much of a mad on going as Art right now.
Charon
Well, it's a good point that once exposed, Art should be dead meat.

I don't see how his money trail can be so well hidden that is untraceable. Even Leonardo got tracked down. If you interact as much with the workd as Art do, you can't be as hard to find as a budhist monk hidden in a secret monastery cut off from the world.

If used in a campaign, you should ignore the idea that Art has been exposed in a shadowland file or that he took out Gunderson (that would attract a lot of atention).

Just use him for a few runs related to sinking Villier's corp. Assume that a slow and methodical sabotage of Novatech is all he has planned since his epiphany. Then when the explosive truth comes out, either Art succeeds (and from now on no more Novatech in your campaign) or he comes short and disappear never to surface again after a few company men pin him down.

But this long protracted battle where both enemies are aware of each other, it's indeed a little hard to swallow in that particular case. It's not like Knight vs Cross or Lofwyr vs Alamais. Dankwalther needs secrecy and once the veil is lifted, he must either have succeeded or he won't be able to.
hahnsoo
QUOTE (Charon)
QUOTE (hahnsoo)
Art is also not bound by retaliation from an Omega order, at the moment, which is the one thing that prevents most AAA and AA megas from destroying each other outright.


It's never a good thing to be the only one outside looking in. Translation ; he is the only major economic powers not protected by the oemga orders. He's fair game to anyone who can find his assets. And damnit, trillions in assets are not hard to notice.

The other megacorps are watching and seeing only Novatech being hurt by this, and I'm sure there are quite a few Corporate Court reps that would rather see Novatech (and Villiers) ripped apart. Sure, they can smack his ass with an Omega Order... by vote of the all the AAA Megacorps. I don't think the AAA Megacorps see Art as a threat at all.
tisoz
I understand your point. I think it is erroneous.

I give one RL example for some possible rates of return. It took no insider knowledge, all you needed to do was look at the history of the stock coupled with their acquisition/growth plan. They came right out and said they wanted to grow by 20% a year and internal growth would only accomplish a 10% rate. So in their prospectus, they even say they are going to buy smaller companies to get their production capacity and customers.

Why would you pay some team + intermediary 400K to "plant this bomb on the side of tank car BN3842, yes the one with all the poison and hazardous materials on it"? Like my RL Union Carbide India chemical spill example. You could probably get it done for under 10K.

You don't seem to want to accept similar examples that have actually happened. You want to think of the planning of stealing the companies proprietary tech or super secret prototype. You don't have to steal Colonel Sander's secret recipe, you just need to have a few cases of food poisoning that gets a lot of press. Same with something like Coca Cola. You don't need their formula, you only need to put a few rats or mice in a half dozen 2 liters.

Poison a few pain relief pills.

Hire some old lady to spill some hot coffee on her lap and sue. Works even better if you had someone working on the inside to sabotage the coffee makers thermostat and testify it had been that way for months.

Put someone in a rodent suit at an amusement park and have them get filmed cursing at a child them pushing the kid to the ground and kicking him a few times.

None of these are going to put the company out of business, but they will probably affect the stock price for a little while. And if you really want to spend a buttload of resources pulling some intricately planned plot with far reaching ramifications, work those in too.
Charon
QUOTE (hahnsoo)
Sure, they can smack his ass with an Omega Order... by vote of the all the AAA Megacorps. I don't think the AAA Megacorps see Art as a threat at all.

That's not the point. The point is Novatech doesn't need an Omega order. They can go nuclear on Art's operation without the corp court blinking an eye. What's the court gonna do? Novatech isn't attacking another corp.

Art is not one of the players therefore Art isn't protected by the rules like the other players.

Beside, if anything, no matter what their personal opinion of Novatech, other corps aren't probably very happy about that kind of crap. A mad dog who bite your neighbor must be put down, even if you don't like the neighbor. Art canned two corp before attacking Novatech. And both Renraku and Shiawase aborbed part of Fuchi. Plus many big corps aren't rivals but business partner with Novatech. They can't be amused by this development. So you really think everyone is happy about that kind of development?

I'm not saying corps will fly to the defense of Novatech. But they'll use their voice to make sure the corp court stays out of it and let Novatech deal with Art howver they see fit, even if they get a bit carried away at time. Perhaps even slip a few tip about the money trail leading to Art. After all, Banks are corp too. Heck, most banks belongs to corps in SR.
toturi
What makes you think that since the other AAAs know that Art is carrying out his vendetta, they aren't subtly supporting him?

Novatech is holding on to the AAA seat only because of a technicality. That gives Novatech a voice that far outweigh its actual power. How much do you think that the other AAAs without a permanent seat would want Novatech out of the way? Especially if they can make Art their convenient attack dog?
Charon
QUOTE (tisoz @ Feb 28 2005, 02:03 AM)
You don't seem to want to accept similar examples that have actually happened.

No, similar example have not happened.

Never, ever, has a billionaire (or the equivalent for the era) become a trillionaire in 6 months.

Account for inflation, divide by wishful thinking, whatever.

The bottom line is the Author said that Art started with a Trump-like fortune and in six month turned it into that of... Well no single man has ever been that rich in the history of mankind.
Charon
QUOTE (toturi @ Feb 28 2005, 02:17 AM)
What makes you think that since the other AAAs know that Art is carrying out his vendetta, they aren't subtly supporting him?

Again, not really the point.

These Megacorp have to abide by the court's law.

They can't overtly stand in the way if Novatech track Art and then send a millitary strike on his ass. They can't stand in the way if Novatech deckers declare open seasons on Art's holding. Subtly helping him won't do him a lot of good in that case. In fact, I'd guess most megacorps wouldn't want to touch Art with a 10 feet pole because of that. If he was still working secretly, sure. In the open, forget it. It's like a rogue nation dropping a terrorist if he becomes too hot (like Carlos the Jackal in the 70s),

That's what I mean by going Nuclear ; Novatech is entitled to use exreme prejudice against Art. No megacorp will deny that, no more than the UN could deny the right of the US to stomp over Afghanistan (Iraq turned out to be another matter but let's not get into that). After his initial strike, Art becomes the Bin Laden of the SR economic world and like him his only hope to remain a free (and living man) is to hide in a grotto and stay there.
Edward
How would this scenario track to art.

Stock A has 10,000,000 shares that are regularly traded, the rest are not on the market the list price is $10 on the UCAS stock exchange. It trades frequently on this exchange by SR standards, averaging 5 trades a second

Holding companies 1-10 purchases 100,000 shares in stock A within a second. Cost 1.05 Million

5 seconds later du to supply dropping 10% the value of stock A increases to $12

Investment companies 11-30 sell short stock promising to sell 50,000 shares each for $11.50, income 1.15 million.

Holding companies 1-10 sell there stock quickly income 1.15 million

The rapid influx of stock drops the price to $9.50

Investment companies 11-30 all settle there debt buying stock for those they promised to give it to, expense 1 million

Monies invested 1.05 million
Net expense 2.05 million
Net income 2.3 million
Net profit $250,000 or just under 25%
Time elapsed 10 seconds

All companies 1-30 are registered in jurisdictions that do not require reporting of ownership although ultimately they trace ownership to art there records are not available on the matrix (and they are small time enough to get away with that).

The only point I expect to be wrong on is the portion of the traded stock you need to buy to or the change in stock price you could create 25% profit is probably overly optimistic but even 5% profit would make the gains he made reasonable

Another couple of steps could be added to increase the profit from this enterprise

You should be able to reproduce this every 20-30 seconds and in parallel be working on other stocks that will behave in a similar manner to utilise the full investment capital and any loans you can secure against your holdings.

As for shadow runs, why do you need to pay 60K a runner, these are basic runs, make a mess, blow that up, make there host crash. Even kill a scientist is only worth 5K a runner. If you want more subtle then fill exec’s home computer with pictures of people raping 8 year olds of both sexes (ideally include sim sense recordings of same) and call the cops as an anonymous informant isn’t going to call for 60K per runner. Maybe 10K including the penalty for having to find pictures that make you puke to use. We aren’t talking about AA or even AA corps here. We are using small companies that can be more easily manipulated.

Indecently what would a run be worth where the entire job was to let it be known that your running against a corp. there actually is no run, just the appearance of the build up to one?

Edward
toturi
And that's what they'll do too. When Novatech's resources are being used to strike at Art, the other AAAs are using deniable shadowrunners to strike at Novatech and biting pieces of Villier's holdings.

Oh, and Novatech already knows that Art is after them. And he is succeeding. Honestly, I do not think he even cares about his life as long as Novatech goes down.
Charon
QUOTE (edward)
How would this scenario track to art.


Well, I could attack the reasoning point by point but I'll just ask :

And the other investors aren't doing the same thing because... ?

Remember my little finance joke : A finance student sees 20 bucks and bend to pick it up. His teacher stops him. "Kid, if there really as 20 bucks on the ground, don't you think somebody would have picked it up?"

So to answer the above question ; people don't do that because it doesn't work. There is no risk free cash machine. If there was, everybody would do it, inflation would explode and the government would crack down on it (or just crack, it depends).

There are occasional good investment opportunities (very good even), but none in the history of mankind has ever been able to absorb 20 billions and give out above 92% a month.

---

I would also add that you are being very optimistic about what would affect the value of a stock. Much of what you suggest wouldn't even be newsworthy, much less sufficient to scare investors into selling their stock.

"Oh no, a manager of Omnitech has been caught with kiddie porn on his computer. My, Omnitech isn't gonna be able to turn a profit this year. I'll sell."

This wouldn't even affect the stock today, much less in the jaded 2060s. What investors are worried about is fluctuation in cashflow.

BTW : The tought that the corp would search the personal computer of a corp executive based on an anonymous tip is flat out ridiculous anyway.
Charon
QUOTE (toturi @ Feb 28 2005, 02:59 AM)
And that's what they'll do too. When Novatech's resources are being used to strike at Art, the other AAAs are using deniable shadowrunners to strike at Novatech and biting pieces of Villier's holdings.

Oh no, those super shadowrunners are after Novatech and will "nibble" at their holding! Whatever is Villier going to do? Keep the security personnel on high alert, cancel vacation and pay a lot of over time for a few weeks? hire a few trusted "consultant" to bolster the ranks? No, surely Novatech will crumble. It couldn't stand up to the might of such professionals of high caliber as a crew of shadowrunners. It is DOOMED!

Hum, sarcasm aside, and no offense, but that wouldn't bring down Novatech. It'll be expensive but when it's over Art would be dead and that would be it.

Of course, that's not how the authors will play it, I suspect.
toturi
That's because he's got no more money. Novatech is already in debt.
Charon
QUOTE (toturi)
That's because he's got no more money. Novatech is already in debt.

Financing is not the problem.

Corporation are always in debt anyway, the question is just how much. If no more financing can be acquired through debt, there is always stock.

Worst case scenario, Villier can sell 5% of his own stock and have all the liquidity he needs to end this fight without even losing his majority equity in Novatech.

tisoz
Way to ignore the real life examples of things that have affected stock prices and could be duplicated by cheap shadowruns. Instead you put up a strawman argument. But you do go on to ridicule other potentialruns.

Also, how come your Novatech deckers are so much more effective than Art's hired deckers? You seem to think everything Novatech does will be golden and everything anyone else attempts will be rotten.

QUOTE (Charon)
Well, I could attack the reasoning point by point but I'll just ask :

And the other investors aren't doing the same thing because... ? 

Remember my little finance joke : A finance student sees 20 bucks and bend to pick it up.  His teacher stops him. "Kid, if there really as 20 bucks on the ground, don't you think somebody would have picked it up?"

So to answer the above question ; people don't do that because it doesn't work.  There is no risk free cash machine.  If there was, everybody would do it, inflation would explode and the government would crack down on it (or just crack, it depends). 


My father says this all the time. He said it when I told him about the fluctuating stock, He said it when I bought a few lots in Florida for $12,000 and sold them 5 years later for $120,000. (Here's a little investment tip for everyone: it's not too late. It's late but unimproved Florida property will probably double in the next 2-5 years. Baby boomers are hitting retirement age and it will only get worse.) I've told dozens of people about property tax lien certificates that pay up to 36% a year. Even I am one not to invest in MI certificates which I have heard pay up to 50% after the second year. The states I have bought in pay 10% IN, !8% FL, 25% TX, 36% IL. You either get your money plus the interest or the property. But no one I know has invested in them.

You actually hit on why everyone doesn't invest in high return ventures. RISK. Only you seem to think every investment carries the same amount of risk. If that were true, why does anyone invest in treasury bills, or certificates of deposit, or savings accounts? They do because there are people who won't even accept the risk associated with the stock, bond or money markets.

What Art is doing is a whole level of risk beyond what normal investors are willing to accept. Something about death or prison rightly deters them.
Charon
I said it again and again ; no single high risk investment can absorb 20 billions and investing in tons of different smaller high risk investment is the equivalent of investing in the market ; it yields the market rate.

Nobody listens?

I keep telling you I agree that there are good investments out there. Do I need to quote myself to show it?

Not three posts ago I said :

QUOTE (Charon)
There are occasional good investment opportunities (very good even), but none in the history of mankind has ever been able to absorb 20 billions and give out above 92% a month.


But...

NO ONE IN THE HISTORY OF MANKIND HAS TAKEN 20 BILLION
(or the equivalent for the era when accounting for inflation) AND TURNED IT INTO TRILLIONS IN 6 MONTHS

Never. Ever. Since the Pharaoh to the current days. In fact, no single man has ever owned trillions (though presumably a few do in SR, albeit it's always based in a growth that spans decade like for Lofwyr).

You have sold your condo for a big profit? Good for you. People have bought 3$ lottery ticket and won 200 000 millions buck with it too. I'm not denying that it's possible to make a killing on the market, never have.

But...


NO ONE IN THE HISTORY OF MANKIND HAS TAKEN 20 BILLION
(or the equivalent for the era when accounting for inflation) AND TURNED IT INTO TRILLIONS IN 6 MONTHS

Is it sinking in? The larger the investment, the harder it is to get it to grow exponentially. Until it becomes impossible to get much more than the market rate.
It's the same reason why an emerging country can get a much higher growth on GNP than a rich country. It's easy to grow by leap and bound with a small capital base. It's not with a larger one and it's impossible with a huge one.

PS : Oh, and the money making scheme exposed by edward? The one I was answering to when I said it was impossible and you answered me with an unrelated real estate example? Yeah, that's still impossible to pull as a standard business practice.
tisoz
QUOTE (Charon)
I said it again and again ; no single high risk investment can absorb 20 billions and investing in tons of different smaller high risk investment is the equivalent of investing in the market ; it yields the market rate.

I told you how Art could easily invest in a hundred or a thousand different investments and beat the hell out of the market rate. You just keep ignoring it.

So I can't think of anyone that has ever done it. Unless you can calculate the value gained by every conquering band, tribe, horde, army, etc. throughout prehistory and recorded history, you can not make this claim. I think from the time Noah loaded up the ark (the time that went into building it was him amassing his investment vehicle) until he and his family possessed all the earth was less than 6 months. Let's see, rained for 30 days - that's a month, how long did it take the waters to recede? wink.gif

Even at that, records are made to be broken, Art breaks the record in the SR timeline. Maybe you're forgetting one of the basic sayings of investing: past performance does not guarantee future returns. So it really doesn't matter if it hasn't ever been done before.
toturi
QUOTE (Charon)
NO ONE IN THE HISTORY OF MANKIND HAS TAKEN 20 BILLION
(or the equivalent for the era when accounting for inflation) AND TURNED IT INTO TRILLIONS IN 6 MONTHS

Doesn't mean no one can.

NO ONE IN THE HISTORY OF MANKIND HAD WALKED ON THE MOON PRIOR TO 1969.

Doesn't mean no one could.

If your total market is in the quadrillions? You think you can't invest billions to get trillions?
Charon
QUOTE (tisoz @ Feb 28 2005, 05:06 AM)
I told you how Art could easily invest in a hundred or a thousand different investments and beat the hell out of the market rate.  You just keep ignoring it.

No, I don't keep ignoring it. I keep answering that if Art can invest in thousands of different investments he couldn't beat the market by more than a few points. Diversification lower risks and also variability in the expected return.

If he could beat the hell out of the market everytime, then through which kind of financial magic unavailable to everybody else is he doing it? We're back to the burning karma theory from last page.

BTW : loved your noah's argument. Got a good laugh out of that. rotfl.gif
tisoz
No, he is using shadowruns to influence the market. Every illegal and unethical means he can employ to obtain his objective. Look at some of the things I listed that have actually happened that influenced a stocks price. Art is duplicating those with shadowruns. They don't cost hundreds of thousands to pull off, maybe tens of thousands.

So he knows what stock is going to move and close enough to when. He can do it to hundreds of different stocks at the same time.
Charon
QUOTE (toturi)
Doesn't mean no one could.

If we're down to that, I think we can close the argument.

It's like saying that just because no one has ever seen the invisible pink unicorn doesn't mean she's not out there.

Well, it's true. But I'm not too worried to be proven false anytime soon if I claim there's no such beast.
Charon
QUOTE (tisoz @ Feb 28 2005, 05:24 AM)
No, he is using shadowruns to influence the market.  Every illegal and unethical means he can employ to obtain his objective.

As opposed to the ethical corporations who don't hire runner? Please. You've read the novels, I'm sure. Assassination, sabotage, extraction... What more is Art going to do? The corps are already using every dirty trick in the book. It's what make this a cyberpunk economy instead of just the normal cut throat business of the real world.

Really, what edge does he have that they don't? Better analysts than Shiawase's MIFD? Better foresight than Lofwyr? Better luck than Wuxing who manipulate dragon lines to their advantage? What?
toturi
QUOTE (Charon)
Really, what edge does he have that they don't? Better analysts than Shiawase's MIFD? Better foresight than Lofwyr? Better luck than Wuxing who manipulate dragon lines to their advanate? What?

Suicidal tendencies. The willingness to put your life on the line is the best edge. Oh and did Art's ancestor really buy Big D dinner?
tisoz
QUOTE (Charon)
QUOTE (tisoz @ Feb 28 2005, 05:24 AM)
No, he is using shadowruns to influence the market.  Every illegal and unethical means he can employ to obtain his objective.

As opposed to the ethical corporations who don't hire runner? Please. You've read the novels, I'm sure. Assassination, sabotage, extraction... What more is Art going to do? The corps are already using every dirty trick in the book. It's what make this a cyberpunk economy instead of just the normal cut throat business of the real world.

Really, what edge does he have that they don't? Better analysts than Shiawase's MIFD? Better foresight than Lofwyr? Better luck than Wuxing who manipulate dragon lines to their advantage? What?

I thought we covered that a few times.

The corps have to worry about corp war or an omega order. Art needs to worry about reprisals, too. But I don't think there are many individual investors with Art's monetary resources.

In the whole scheme of SR reality, this is not near the top of my improbable events. NAN overthrowing US and Ghostwalker trashing Denver seem even less likely to me. But others disagree and are not going to convince me, so I doubt anyone will convince you.

Just hope I showed how it had a minute possibility of happening.
Charon
QUOTE (tisoz @ Feb 28 2005, 05:48 AM)
I thought we covered that a few times.

The corps have to worry about corp war or an omega order.


Corp are using runners specifically because they have to go around Omega orders.

They're deniable and all that. If Art was using the fact that he doesn't have to worry about the corp court to his advantage, he wouldn't be using Shadowrunners. He would be using an army for a direct confrontation. Oh, right he has none.

By using runners to do his dirty work, Art is playing on the usual Corporate dirty playing field. No edge there.

QUOTE (toturi)
Suicidal tendencies. The willingness to put your life on the line is the best edge.


Man, guys like Lofwyr, Villier and Lanier really should take a lesson from that. Bunch of chickens who never risked their life for profit and power...

Oh wait. The first agreed to a duel with another great dragon, the other played an insane game of chicken with the rest of Fuchi that would have gotten him geeked if he hadn't come on top and Lanier did one better by infiltrating Renraku and if you read the events in Technobabel you will see that in his last days in Renraku he faced more danger than the average runners.

If we were talking about RL executives you might have a tiny point there. But SR top executives are completely insane. They often do risk their life. That's why the corporate player was an archetype in the Cyberpunk game. It's part of the genre. Quite a few get killed, as a matter of fact. I'm guessing their attrition rate has got to be much worse than firefighters. More like being a soldier in Iraq! Right now I'm reading Shadowboxer and Erica Johnson, number 3 at Gunderson (ironic, eh?), has personally killed the last survivor of a group of runner she set up. She's kinda hoping the ploy will contribute to her machinations to climb the last remaining echelons. Gotta read the rest of the novel to see if she gets killed. She kinda deserve it... Anyway, Art has nothing to teach about taking risks to these guys.
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