..or why that German billionaire jumped in front of a train:

Adolf Merckle, one of the world’s richest men, committed suicide yesterday by throwing himself under a train, Bloomberg reports. Financial difficulties, and particularly great losses he suffered on Volkswagen stock, are being cited as the key reason he ended his life:

[Merckle's company] VEM was caught in a so-called short squeeze after betting Wolfsburg, Germany-based Volkswagen’s stock would fall. Merckle lost at least 500 million euros on the bets on VW stock, people familiar said on Nov. 18. VEM lost “low three-digit million euros” on VW stock, the company said in November.

A “short squeeze” sounds inconspicuous enough; you wouldn’t tell it by Bloomberg’s language, but Merckle’s Volkswagen bet lost out to one of the most masterful hacks of the financial system in history.

http://radian.org/notebook/porsche

I encourage you to read the whole article.  The morale of the story?  Don't mess with companines that did business with Adolph Hitler?

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1 Comment so far

  1. Jeff on January 8, 2009 9:46 pm

    That article was a nice find Chris.

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