48 replies to this topic

[BSLRoseKatz]

The GameStop stock frenzy, explained

 

Pretty amusing to follow as someone with no investment in this and a frequent Reddit user

[mweb08]

The GameStop stock frenzy, explained

Pretty amusing to follow as someone with no investment in this and a frequent Reddit user

Crazy story and insane profit for those that got in on this early, or even just this week.

[Biggsy]

I feel like this is the proper place to bring up a bunch of small time "retail investors" from reddit banding together to drive Gamestop shares from like $10 a share to over $300. All those retail investors are making $100k+ (probably double their day job salaries in some cases) while Costing all the big time wall street millionaires, billions of dollars in a sweet reversal of fortunes. Score one for the little guys.

[The Epic]

I feel like this is the proper place to bring up a bunch of small time "retail investors" from reddit banding together to drive Gamestop shares from like $10 a share to over $300. All those retail investors are making $100k+ (probably double their day job salaries in some cases) while Costing all the big time wall street millionaires, billions of dollars in a sweet reversal of fortunes. Score one for the little guys.

 

At the end of the day, you'll be pretty shocked as to who ends up losing money and who ends up getting made whole.

 

But a lot of people made life-changing money today, and I'm happy for them. 

[Biggsy]

At the end of the day, you'll be pretty shocked as to who ends up losing money and who ends up getting made whole.

But a lot of people made life-changing money today, and I'm happy for them.

The group is holding the stock until Friday. Investors shorted more stock then what actually existed. Those margin accounts will be called Friday, and those million dollar investors now HAVE to buy the stock back at the market price. They've already reallocated billions of dollars to cover the losses. Sure some retail buyers will lose out when the price inevitably plummets. They'll lose hundreds or even thousands of dollars from their initial investments. Others will bank anywhere from 10's of thousands to millions on it. Wall Street elitist millionaires are estimated to lose over 5 billion. That's Billion, with a B.

This was never about the group truly making money. As much as it was about sticking it to hedge funders who short companies and use publications to drive the stock price down. All so they can profit millions, while simultaneously destroying businesses and costing retail buyers in the process.

This group finally came together, chose the most shorted stock on the market, and blew it up with the goal being to hold it until brokers called their margin accounts to give the stock back.

My favorite part of this, is that in their panic to pull all favors and minimize their losses, they've shown their obvious corrupt hands. Calling in favors to certain brokers to halt buying on said stocks, but allowing them to be sold. AOC and Cruz have already agreed that an investigation needs to be had. Politicians are taking the side of the little man. Other big time guys like Cuban are questioning the methods and corruption. Dave Portnoy is basically leading the revolution to end Robin Hood and have the founders jailed for what they've done. Its beautiful. Who knew that all we needed for a little unity was some wall Streeter's showing their corrupt hands while also losing billions. Greatest reallocation of wealth the U.S.A has ever seen. 😂

[BSLRoseKatz]

Robinhood Stops Users From Trading GameStop Stocks, Other Reddit Picks

 

This is really just a wild story

[The Epic]

My favorite part of this, is that in their panic to pull all favors and minimize their losses, they've shown their obvious corrupt hands. Calling in favors to certain brokers to halt buying on said stocks, but allowing them to be sold. AOC and Cruz have already agreed that an investigation needs to be had. Politicians are taking the side of the little man. Other big time guys like Cuban are questioning the methods and corruption. Dave Portnoy is basically leading the revolution to end Robin Hood and have the founders jailed for what they've done. Its beautiful. Who knew that all we needed for a little unity was some wall Streeter's showing their corrupt hands while also losing billions. Greatest reallocation of wealth the U.S.A has ever seen.

 

In some cases, even forcing them to be sold, which is just bare-rumped blatant. 

 

I hope...hope...that legitimate legislation comes out of this, but I have strong doubts. Robinhood literally manipulated the market so that rich people could recover their losses, leaving retail investors hanging out to dry...which was the opposite of the "intent" of the app. It's insane. Heads -should- roll, but I'm skeptical that they will.

[mweb08]

In some cases, even forcing them to be sold, which is just bare-rumped blatant.

I hope...hope...that legitimate legislation comes out of this, but I have strong doubts. Robinhood literally manipulated the market so that rich people could recover their losses, leaving retail investors hanging out to dry...which was the opposite of the "intent" of the app. It's insane. Heads -should- roll, but I'm skeptical that they will.

Yep. I mean the app is literally called Robinhood, and due to the reason you mention. It's ridiculous.

Note that they've said they'll allow limited buying of Gamestop and adjacent stocks that they cut off today.

[Mike in STL]

Robinhood Stops Users From Trading GameStop Stocks, Other Reddit Picks

 

This is really just a wild story

I wish I learned more about finance. 

 

Is this some kind of situation where common people are benefitting financially, and because billionaire hedge fund managers are taking a hit, it's all of a sudden a problem? 

 

EDIT: I see this being covered more in another thread.

[BSLChrisStoner]

The Ringer: The GameStop Stock Market Saga Explainer Dictionary

[JeremyStrain]

Yep. I mean the app is literally called Robinhood, and due to the reason you mention. It's ridiculous.

Note that they've said they'll allow limited buying of Gamestop and adjacent stocks that they cut off today.

They should have to change the app name to anti-Robinhood so at least you know what you are getting into.

[JeremyStrain]

I wish I learned more about finance.

Is this some kind of situation where common people are benefitting financially, and because billionaire hedge fund managers are taking a hit, it's all of a sudden a problem?

EDIT: I see this being covered more in another thread.

Yep and another shining example of rich white men having the system they have manipulated for years used against them so they stop the game, change the rules so they win.

[DuffMan]

Shit's so crazy it caused Jon Stewart to join twitter and join the discussion

[The Epic]

I wish I learned more about finance. 

 

Is this some kind of situation where common people are benefitting financially, and because billionaire hedge fund managers are taking a hit, it's all of a sudden a problem? 

 

EDIT: I see this being covered more in another thread.

 

This is pretty much it. 

 

If you're betting on a company to fail, and "the little people" screw you out of your money...man, that's the closest thing to karmic retribution that exists.

[Mike in STL]

This is pretty much it.

If you're betting on a company to fail, and "the little people" screw you out of your money...man, that's the closest thing to karmic retribution that exists.

Kinda like at the craps table the jerk that plays the don’t pass and don’t come lines, and little guys are rollers that can’t stop rolling sevens to open and then hitting their point number.

I am this jerk, but only at the craps table! Everywhere else, I love stories of getting one over on “the man”.

So do I need to buy up a ton of blockbuster video stock?

[The Epic]

Kinda like at the craps table the jerk that plays the don’t pass and don’t come lines, and little guys are rollers that can’t stop rolling sevens to open and then hitting their point number.

I am this jerk, but only at the craps table! Everywhere else, I love stories of getting one over on “the man”.

So do I need to buy up a ton of blockbuster video stock?

 

I think you're gonna see this a lot with failing/failed concepts until regulators find a way to stop it. 

 

Spectacularly failing (well, it was originally a joke) cryptocurrency Dogecoin shot up over the past few days. Again, absolutely life-changing money. 

 

It's non-sensical, but the commonality is "failing concepts."

[You Play to Win the Game]

Antoine - I know you're a finance guy. What do you mean when you talk about regulation? As in, eliminating hedge funds overall? How would they be able to regulate what happened? Also, do we need hedge funds? What would happen if that industry went away?

[The Epic]

Antoine - I know you're a finance guy. What do you mean when you talk about regulation? As in, eliminating hedge funds overall? How would they be able to regulate what happened? Also, do we need hedge funds? What would happen if that industry went away?

 

#1, Hedge funds will never go away as long as we live in this sort of environment. In fact, since hedge funds have pretty much maintained their wealth through the pandemic, it's really unlikely that any sort of regulation restricting hedge funds as a whole will take hold; the people in power got paid, and they want to keep getting paid.

 

#2, the regulation, if any, and at worst, would likely be related to shorts and the banning of more complex derivatives ultimately disguised as shorts. If they can't do that, then there will be some sort of strict regulation related to bigwig market manipulation tactics related to shorts (ie leaking news). I'm not optimistic that any regulation will have teeth with regard to penalizing the bigwigs/institutions. But we'll see.

[You Play to Win the Game]

#1, Hedge funds will never go away as long as we live in this sort of environment. In fact, since hedge funds have pretty much maintained their wealth through the pandemic, it's really unlikely that any sort of regulation restricting hedge funds as a whole will take hold; the people in power got paid, and they want to keep getting paid.

 

#2, the regulation, if any, and at worst, would likely be related to shorts and the banning of more complex derivatives ultimately disguised as shorts. If they can't do that, then there will be some sort of strict regulation related to bigwig market manipulation tactics related to shorts (ie leaking news). I'm not optimistic that any regulation will have teeth with regard to penalizing the bigwigs/institutions. But we'll see.

Based on how CNN and Fox News are covering this, and the fact that Congress regularly engages in insider trading and are cozy with Hedge funds (especially Pelosi), I just assumed when people bring up regulation with this, they meant to find a way to not allow us regular folks to be able to pull something like this off ever again.

[The Epic]

Based on how CNN and Fox News are covering this, and the fact that Congress regularly engages in insider trading and are cozy with Hedge funds (especially Pelosi), I just assumed when people bring up regulation with this, they meant to find a way to not allow us regular folks to be able to pull something like this off ever again.

 

I think the only way to keep "regular folks" from doing this is to keep the situation from happening. The redditors did nothing wrong, even from a moral standpoint; they just took advantage of a flaw in the market, like anyone would. Regulating that would risk dismantling the very concept of investing. You can't keep people from simply buying/selling stock. That's asinine.

 

It'd be like banning the shift in baseball, or some crap, because Chris Davis keeps hitting into them. 

 

The only way to fix it is to fix the flaw. The only way to fix the flaw is to regulate shorts somehow. Or else this will keep happening.