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2022-11-23 07:00 by Karl Denninger
in Investing , 1632 references Ignore this thread
You're Going To Get Robbed
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Read this Twitter thread in full.

Today, we issued a final rule that allows retirement plan investors to take climate change and other environmental, social and governance (ESG) factors into consideration when making investment decisions:

Oh really?

Did you not just see a prime example of what happens when "ESG" takes over a corporation?  Why, you did.  It's called Twitter.

Three quarters of the people, all hired with "ESG" in mind, were just fired by Musk who as a private owner has zero obligation to any such so-called "principle."  The various screaming parties in the ESG cult all predicted immediate doom and disaster.  No such disaster has occurred; the firm's only service it provides to the public is running just fine with one quarter of the staffing load -- and thus cost -- it used to have.

If you think Twitter is unique in this regard you're too stupid to have a retirement and deserve to lose every cent of whatever you claim to be "investing."

Let's put this in simple terms: If "ESG" is a net positive for a company then nobody has to exempt anything or make it a separate subject of consideration and in fact doing so is stupid because if it in fact makes the firm more competitive and operating at a lower cost per unit of output it wins all on its own.

What the Department of Labor has said by issuing this advisory is that your "retirement plan" can now be disadvantaged to any degree whatsoever, including losing all of it, when (not if) these "ESG" initiatives cause the firms invested in to underperform or fail outright and when that occurs you can't sue the plan provider for violating their fiduciary responsibility to you as the true owner of the asset.

In other words the Department of Labor is formally admitting that these "ESG" initiatives are not to the benefit of the firm's operating results and thus are also not to your benefit as an investor.  This fact has now become a formal admission by our Federal Government.

What's worse?  This "rule" amounts to an admission of collusive price-fixing -- albeit indirect -- between what are supposed to be competing firms.  Under 100+ year old law that is a serious criminal felony.

You will get screwed out of trillions of dollars over the coming years as a result of this and you are responsible for that screwing because you have and continue to permit this sort of rank corruption to take place without demanding it stop and backing up that demand with whatever is necessary to eliminate it.

So be it.

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Cmoledor 1k posts, incept 2021-04-13
2022-11-23 07:14:46

Fuck the fucking fuckers. What a load of shit our gubmint has become. Well I suppose its been that way for a while but this one is really a load of shit. Why not just dictate that we invest in unicorns?? Assholes.

The whole world is one big fucking scam
Why are you giving a vulgarity warning here? Our genial host is an advocate of both skullfucking and sodomy via rusty chainsaw. Credit to Rollformer
Wayiwalk 575 posts, incept 2016-11-09
2022-11-23 07:31:54

Just imagine all the "good" the Dept of Labor could do if they had a sizable budget to spend on programs.

smiley smiley smiley smiley smiley

(needed a bunch of these to ensure I convey my degree of sarcasm)

The Lockdowns Will Continue Until the Morale Improves!

I keep thinking, "it can't get any worse" and then it does!
Bluto 1k posts, incept 2021-07-10
2022-11-23 07:54:34

I reckon the only way to "win" is not to play. Easy enough.

May all the ESG clowns be fully vaccinated and boosted forever.

"One man with courage makes a majority" Andrew Jackson
Synopsis 76 posts, incept 2010-02-05
2022-11-23 07:57:38

I remember reading an article a few months ago (and posted here) about a bank in Australia who will no longer making loans on internal combustion (gasoline) automobiles. You see, they do not care what consumer want in a product or about what YOU think period. With this ESG creed, they can control everything. You are not going to buy another gasoline car because the are not going to loan you the money to do it. See how that works?

No one likes all the new woke entertainment at Disney now right? Thats ok because the big bankers will still buy the stock because its ES fucking G and its good for all of us.

It is full on and in your face 1984. If you dont obey and comply with ESG and all the woke bull shit that goes along with it then you are cut off. No bank loans or investments for you or your business. The ESG companies will not be able to do business with non ESG compliant companies.

Merlin 141 posts, incept 2017-07-25
2022-11-23 08:06:50

Oh Fucking Ducky.

There goes what's left of my pension. Is it time to start shooting these Bastards yet?

We've tried the Soap Box, They censored that.
We've tried the Ballot Box, They stuffed that.
We've tried the Jury Box, They tamper with that.
All we have left is the Cartridge
Djsnola 320 posts, incept 2009-03-16
2022-11-23 08:11:16

This certainly seems like a ruling the will make the IPO market quite interesting going forward. Perhaps staying private will be the way to go and stick to raising VC in the smaller but more efficient private markets.
Shadowmask 4k posts, incept 2021-05-24
2022-11-23 08:12:23

Whatever. Wake me up when the shooting starts.
Ocdawg 383 posts, incept 2019-03-14
2022-11-23 08:19:43

SBF still walking free tells you all you need to know

I'll take, "Keep my cash for $500 Alex."


"I say we take off, nuke the entire site from orbit... it's the only way to be sure"
Adgc1971 5 posts, incept 2022-09-03
2022-11-23 08:27:51

I try to do an "excellent securities gains" (ESG) approach on investing.
Misemeout 27 posts, incept 2021-09-12
2022-11-23 08:58:41

It's true that ESG garbage is theft and an outrageous drain. At least you can bet against the companies involved in that garbage. It was inevitable they would have a scam to drain retirement accounts.
Takewhatyoucan64 85 posts, incept 2022-08-30
2022-11-23 08:58:46

so ESG and DEI bullshit is also inflationary
Takewhatyoucan64 85 posts, incept 2022-08-30
2022-11-23 08:58:49

from here on out all stocks are meme stocks.
Cyben 55 posts, incept 2022-10-21
2022-11-23 08:58:52


Now, if you believe what you wrote, ask yourself how it is that big bankers can continually make investments at loss.

The only possible answer is that they're investing -- legally or otherwise -- things that do not rightfully theirs. How is that permitted to continue?
Evergreen 212 posts, incept 2021-12-26
2022-11-23 09:13:28

From the rational man approach, it doesn't stand to reason that the account manager would actively consider garbage as an attraction for his charge.

So, why would he advocate to go there, in violation of his rational man charter?

Well, for reasons other than to profit from marginal competitiveness of the objective investment.

What does that leave as "rational" arguments for the behavior?

Politics. Using the massive treasure at his disposal to wield AGAINST the companies that are not ESG.

Remember, to lib-tots (liberal totalitarians), everything is political. Thus, now that pension funds and massive money managers fed by the 401K laws have unbelievable volumes of chips in their possession, they wield them as clubs.

Thus, to rule in ESG is to backhand all non-ESG. Divestments of unpopular companies would now be legit under such a ruling, because choosing worse over better was indefensible until now. Now likely comes the push for universal ESG if any company wants to not be embargoed.
Tonythetiger 754 posts, incept 2019-01-27
2022-11-23 09:14:09

Extra Stupid Governance.

Most publicly traded companies have it now, to one degree or another.

If they're not pissing your money away on saving the planet, they are attempting to scam the planet with promises of saving it or saving the feelz of dead-weight employees.

Fortunately my 301k allows me to put 90% of my money into a self-directed brokerage account, so I can try to minimize the ESG impacts that come with the limited options offered in the base plan.

"War is when the Government tells you who the bad guy is. Revolution is when you decide that for yourself." - Benjamin Franklin
Synopsis 76 posts, incept 2010-02-05
2022-11-23 10:55:59

Fuck yeah I believe what wrote.

The world has been slipping down the proverbial slippery slope for at least 30 years now.

Which slippery slope you ask? Companies doing things that dont make sense for the business, but play along and do it anyway. It used to be called being politically correct. Those in power are in power because they do play along.

Take for example the Nasdaq Board Diversity Rules.

NASDAQ wrote..
By 2025 or 2026, depending on their listing tier, companies must either have two diverse directors, including one who identifies as female and another as an underrepresented minority or LGBTQ+

Now, does that make any fucking business sense whatsoever? It does not matter. Comply and play along or be delisted.

There are many, many examples like this at every level of business and government.

Ocean_eyes7 6 posts, incept 2022-06-26
2022-11-23 10:56:21

Looks like a way to milk off more $ from Joe American. Wage slaves have "a way out" of their enslavement by means of "retirement account".

The average schlub gets saddled with nearly $100k the instant they become an adult, for a useless degree in 'hospitality and hotel management' (a degree created whole-cloth to allow dumb, but sportball-worthy kids to go to your prestigous hallowed halls), which gives you no skills for actually working. Then spend years paying 1/3 of their money to Uncle Sam, for his handouts and crap. When you've managed to sock away some money for your twilight years, now your company who set up your IRA can invest that money in ESG?

I bet dollars-to-donuts that FTX, Enron, Lehman Bros, and Solyndra had a phenomenal ESG score. Or would have, had they not bilked their customers and Madoff with their money...
Dingleberry 566 posts, incept 2011-11-06
2022-11-23 10:56:26

There is no saving a people insisting on being destroyed or enslaved by its own hand.

They voted for woke and depravity (i.e. for marxist dems and globalist neocons).

They got it.

I saw a vid yesterday of Elon finding a closet full of "stay woke" t-shirts in the Twatter HQ building. No wonder the stock price missed the run up of the last decade. Wokeness is not conducive to nature let alone economics. Karens tend to not be very productive, except at virtue signaling and running their mouths.

Now I read we are going to pay billions for our climate "sins" to some grifters at the UN? While China and 3rd world shit holes pollute on biblical scales with nary a peep.

Oh well. Just chalk in up to yet another hit on our standard of living and freedoms. The (m)asses have spoken.

Ingar 426 posts, incept 2017-02-14
2022-11-23 10:56:43

I used to donate to the Nature Conservancy. A couple of years ago, their newsletter had a feature about how the organization wasn't doing enough to attract POC and especially black women to the cause of preserving nature. As far as I know, there were never any barriers or disincentives against anyone donating to their cause and working on their projects other than perhaps an individual's lack of an altruistic spirit. Going off on a tangent to attract people who are not interested in the cause detracts from the energy and funding needed to accomplish the organization's original goals. They've not gotten a dime from me since that newsletter.

How many investment funds are going to come up short because of some woke managers commitment to marxist goals?
Tsherry 11k posts, incept 2008-12-09
2022-11-23 10:56:48

Mmmm. Cash.

This business will get out of control. It will get out of control and we'll be lucky to live through it. - The Hunt for Red October
Disgusted 468 posts, incept 2021-07-20
2022-11-23 10:56:52

Bluto, I'm sure most have at least 3 to 5 jabs now, and I say that's fking beautiful. These guinea PIGS are the dumbest m'fkrs that ever lived and are nothing but natural selection losers. That press conference yesterday at the White Shithouse was one for the history books, with Midget Mengele and Fake Dr. Ashish (that's why you have two arms) Jha pushing the toxic shit to the bitter end. Get your booster every year like the flu shot? Gee, what could possibly go wrong with that shit?

Every day our kind host points out another fking idiotic pile of bullshit the insane assholes are pushing on society. Like I said yesterday, I don't think the thing can last past 2024 without it all blowing up in their faces. How many bricks do you have to take out of the wall before there's no wall left? The dickheads are taking all the bricks from the bottom of the wall too. This sucker is going down hard, and it won't be pretty.
Frat 12k posts, incept 2009-07-15
2022-11-23 10:57:04

Your tone in this one (while spot-on) matches my own jaded fuck-it-all perspective at this point. My only solution - besides the obvious kinetic one - is to immediately start supporting more boosters for all of those involved. I think they should have them weekly - just to be careful, because teh covids are still out there!

God forbid you get the new XYZBBQWTF variant; strokes and heart attacks are much preferred, as it would have been so much worse to catch a cold.

We're fucked. There will be no happy ending here; there is no going back to 'normal.'. There are only bad outcomes and worse outcomes. And we don't get to choose those, either.
Ihsmta 842 posts, incept 2008-04-10
2022-11-23 11:00:44

Enterprising individuals will form "Non-ESG" investment funds who will draw capital from ESG funds through the obvious divergence of returns. It's only a matter of time.

IMHO, Elon Musk's purchase then house-cleaning at Twitter speaks volumes to the inefficiencies of ESG businesses and, indirectly, funds.

Disney fired Chapek for dismal performance then rehired Iger who doubled-down on stupid. Yeah, the stock popped but will anything really change?

Stupid, these people are...

"Economists are no different than the prophets of ancient Pompeii who reassured that Mt Vesuvius would never blow. After all, it never had before." Baxter Black, DVM and Cowboy Poet

"You can avoi
Djsnola 320 posts, incept 2009-03-16
2022-11-23 12:15:35

to me this all comes to one thing for existing large corporations and why they are on board with this and its basically the concept of "barriers to entry"... making so many industries so complicated to comply with requirements and being in compliance that new startups are almost impossible to succeed. feels like thats the goal
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