capstack gymnastics

special sits & distress. professional pie cutter.

[capstack gymnastics @fivebuyseven]

@NickNemo17 You’d understand this if you had 6th grade reading comprehension and the opportunity to read a PPM for such a PE fund.

[capstack gymnastics @fivebuyseven]

@NickNemo17 You describe “LP’s” taking out loans on the net asset value of their investment in a PE fund as if that’s a novel concept. Ya heard of something called a credit economy? There is no recourse from a LP’s creditor to an underlying PE investment done by the GP.

[capstack gymnastics @fivebuyseven]

Wtf????

[SightBringer @_The_Prophet__]

What you’re looking at is:

High-income serfdom.

•Dual-income households making $500K+ annually should, by all traditional definitions, be considered “wealthy.”
•But in NYC, after taxes and basic lifestyle inflation, they’re functionally treading water - no savings, no freedom, no escape velocity.

This is engineered.
1. Fixed costs are locked by design
•Rent: artificially inflated via institutional landlordism and supply restrictions.
•Daycare: priced like private school, yet necessary for both parents to work - a childcare tax on ambition.
•Groceries: inflated through supply chain fragility and dollar degradation.
2. Marginal tax rates above $500K are essentially 50%
•But what you’re buying with those taxes is a collapsing public infrastructure, a hostile state, and a crumbling urban experience.
3. The deeper weapon: status illusion
•This class is not poor, so they don’t revolt.
•But they are too taxed, too indebted, and too obligated to ever exit.
•They’re the buffer zone - the most important psychological firewall between the elite and the underclass.

This is not “unsustainable.”

It’s hyper-sustainable, because it drains ambition into productivity without rebellion.

People ask why the Bitcoin thesis matters here?

Because Bitcoin is exit.
It’s the only post-fiat, post-rent-seeking, post-state-bonded capital format that escapes this trap. Not just optically but structurally. No counterparty. No inflation leakage. No tax-induced cage.

This chart is the fuel. Bitcoin is the fire.

If you’re still stuck in this system by 2026, the door will be closed.
This isn’t just about surviving New York.
It’s about surviving fiat civilization.

[capstack gymnastics @fivebuyseven]

@RPCapacity @GrandTokamak Problem will be viewed as “temporary” and mgmt fees still get paid in the interim. Zero incentive to do anything other than roll over for sponsors

[capstack gymnastics @fivebuyseven]

@RPCapacity @GrandTokamak Would not be surprised by a wave of amendments introducing PIK toggles or capping cash interest by other means. Sponsor friendly reputation, perception of no “problem” investments for LPs, and volume is the name of the game in that world

[capstack gymnastics @fivebuyseven]

@SirBaby6 @JerryCap From a regulatory capital charge perspective, wouldn’t there be no differentiation between a merger-arb play with lower vol than overall market and any other common equity investment? Seems like more a call on rates / fwd equity market returns, no?

[capstack gymnastics @fivebuyseven]

@Mc_Partnerships @pmje73 agree but cautious of directional calls on cyclicals using supply constraint as basis. think if volatility in supply chain calms down there is 1-3% margin oppty even at depressed volumes. They already variable-ized cost structure in response to diesel falling off a cliff in 18/19

[capstack gymnastics @fivebuyseven]

@Mc_Partnerships @pmje73 What are your thoughts on supply chain issues easing just as we head into a (potential) recession? Fwiw think strong starting point for consumer balance sheets and constrained supply over the last 3 years should partially offset but interested your opinion

[capstack gymnastics @fivebuyseven]

@CTRI9123 @AlfretonTownFC @FootyScran @PFTCommenter how many beers

[capstack gymnastics @fivebuyseven]

@garlandrg “Prevailing ET” shows you’re big law

[capstack gymnastics @fivebuyseven]

@CapitalHousecat @PlaceboCapital Correct^

[capstack gymnastics @fivebuyseven]

@PrefShares @PFTCommenter

[capstack gymnastics @fivebuyseven]

@KoalemosCap @dstressdanalyst This makes me want to puke

[capstack gymnastics @fivebuyseven]

@HalCapLLC @BillGates This has wasted at least 5 hours of my week

[capstack gymnastics @fivebuyseven]

@websiteidi0t Mikey miles strikes again

[capstack gymnastics @fivebuyseven]

@PlaceboCapital Only bearish SS reports are analysts going off the deep end with a personal vendetta against mgmt for some reason (burned at fireside chat in 2012 or something). Absolutely no true signal in a bearish SS thesis IMO

[capstack gymnastics @fivebuyseven]

@CallProtection @ShitFund Nice

[capstack gymnastics @fivebuyseven]

@RunRateEBITDA Special sits << “opportunities” fund