48 replies to this topic

[The Epic]

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.

 

I'm looking at you, robinhood, btw

[Mike in STL]

So how many people have to buy up how much stock to make life changing money? Can all us BSlers band together?

[Nigel Tufnel]

I think at this point, anyone who buys GameStop stock is probably going to eventually lose their investment.  It's a business without much of a future, and someone's going to be left holding the bag.  I'm happy that they could stick it to the SOB's at the hedge fund, though, and that some people have cashed out and made a lot of money.

[The Epic]

I think at this point, anyone who buys GameStop stock is probably going to eventually lose their investment.  It's a business without much of a future, and someone's going to be left holding the bag.  I'm happy that they could stick it to the SOB's at the hedge fund, though, and that some people have cashed out and made a lot of money.

 

The funny thing is that shorting Gamestop now is absolutely the smart thing to do, and there's a hedge fund right now that will make an absolute mint from doing it.

[CantonJester]

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.

 

I think you need a better metaphor, because I think the shift is the worst thing to happen to the sport and I don't care a wit about the O's.    

[Mike in STL]

Got lost in the rabbit hole for a few in hours in that reddit thread, and I don't even mind. 

 

Can't wait for the movie to come out. Over/Under 5 years for this to inevitably get made?

[BSLMikeLowe]

As much as I'm enjoying the schadenfreude over the hedge funds losing their shirts, weren't they pretty much correct that GameStop's days are numbered, like Blockbuster, and at some point this game will end badly for a lot of people?

[Biggsy]

The funny thing is that shorting Gamestop now is absolutely the smart thing to do, and there's a hedge fund right now that will make an absolute mint from doing it.

I was thinking that today myself. Citadel and Melvin are losing their ass. But some other investment companies are about to make a lot of money.

My issue is with how Gamestop was shorted in the first place. Gamestop was specifically targeted because brokers somehow allowed Hedge funds to short more stocks than what actually existed. The companies that do this all the time thought they had more easy money coming there way when Gamestop inevitably closed their doors and their stock went to pennies. They've done that for decades. And a bunch of bro's on reddit caught them with their hands in the cookie jar finally.

The best part is that almost everyone from that reddit group is perfectly fine losing their initial investments and holding their stocks if it means the hedge funds lose their ass. You have literally millions of average Joe's that are so sick of the elitist white douche's on Wall Street that they're willing to lose thousands of their own money just to make sure they lose billions.

[Biggsy]

I'm looking at you, robinhood, btw

A financial manager I know was talking to me about this. He was telling me that, while he 100%, believes their is collusion and manipulation at play between Melvin group, Citadel and Robinhood. It's also probably pressure from Robinhoods clearinghouse as well.


He's thinking Robinhood doesn't have the capital to cover the volume of Gamestop, AMC, BB and Dogecoin that is being asked by buyers. His assumption was the SEC probably used some back channels to their clearinghouse to basically tell them they weren't bailing them out if they couldn't financially cover the volume of stocks being traded. And the clearinghouse ultimately told Robinhood they had to shut it down. Hence why they allowed selling of certain stocks but not buying. And like was mentioned, even forced selling of stocks in margin accounts without the owners permission.

In a way I get it. Robinhood getting pressured by their own clearinghouse. As well as no doubt getting pressured by billionaires trying to mitigate their losses. But at the same time, they made the worst possible business decisions.

I think when the dust settles, Robinhood will be completely done, or be severely crippled with a permanent black eye.

[1970]

The only thing I have to do with Wall Street is three combined 401Ks (one of which goes back 31 years).  I’ve now lost $37k since this all began.  I’m more annoyed than concerned as I expect to get that back before I retire at the end of next year.  But it still sucks and it obviously hurts to lose that much money, no matter how it happens.

[RShack]

The only thing I have to do with Wall Street is three combined 401Ks (one of which goes back 31 years).  I’ve now lost $37k since this all began.  I’m more annoyed than concerned as I expect to get that back before I retire at the end of next year.  But it still sucks and it obviously hurts to lose that much money, no matter how it happens.

 

Fidelity did a study of which kind of investor did best over the long run...

 

Their finding:  people who simply *forgot* they had an account 

[1970]

I never make changes, but I still check it on occasion.  It just so happens I know where it was on Inauguration Day.

[Mackus]

My investments are all intended to be set-it-and-forget it types but I check the values and changes everyday.  Its one of the more illogical things I do.  All the stress of watching major swings with none of the benefits of someone who can deftly navigate those to their advantage.  I should just ignore it, but I can't.

 

I've got a small amount in crypto and the swings there are wild.  

[Mackus]

The only thing I have to do with Wall Street is three combined 401Ks (one of which goes back 31 years).  I’ve now lost $37k since this all began.  I’m more annoyed than concerned as I expect to get that back before I retire at the end of next year.  But it still sucks and it obviously hurts to lose that much money, no matter how it happens.

 

Congrats on your pending retirement!  What are your plans for when you've got more free time?  Any hobbies you intend to convert to full blown obsessions?  

[JeremyStrain]

As much as I'm enjoying the schadenfreude over the hedge funds losing their shirts, weren't they pretty much correct that GameStop's days are numbered, like Blockbuster, and at some point this game will end badly for a lot of people?

Yep. It’s one of the most slam dunk to go out of business soon. That’s why these Wall Street guys were watching for it and waiting. Only to find out they weren’t the smartest guys in the room and their tricks to get richer quick could backfire in certain situations.

There are probably 20-30 stocks out there this situation could happen for right now. I’ve made a hobby of watching for companies about to go out of.business before they hit the bankruptcy stage, so if I can see them coming I know others can too. Brick and mortar retail has been wobbling on its last legs like a dude fighting 1989 Mike Tyson.

Shopping malls need to shift to offset anchor stores that have historically sustained them with experience destinations or they are going to go under. Things like indoor sporting venues (imagine your kid has 8am soccer, but you get to be warm inside and have fresh Starbucks and a breakfast sandwich while you watch). Places like Dave and Busters. Libraries. Bounce places. Gyms. More restaurants. You will probably see some start to open actual bars indoors eventually.

[Mashed Potatoes]

Fidelity did a study of which kind of investor did best over the long run...

 

Their finding:  people who simply *forgot* they had an account 

 

Would love to read this if you had a link!

[BSLChrisStoner]

Fidelity did a study of which kind of investor did best over the long run...

 

Their finding:  people who simply *forgot* they had an account 

That's part of why there was so much movement to date funds.  

 

[BSLMikeLowe]

Yep. It’s one of the most slam dunk to go out of business soon. That’s why these Wall Street guys were watching for it and waiting. Only to find out they weren’t the smartest guys in the room and their tricks to get richer quick could backfire in certain situations.

There are probably 20-30 stocks out there this situation could happen for right now. I’ve made a hobby of watching for companies about to go out of.business before they hit the bankruptcy stage, so if I can see them coming I know others can too. Brick and mortar retail has been wobbling on its last legs like a dude fighting 1989 Mike Tyson.

Shopping malls need to shift to offset anchor stores that have historically sustained them with experience destinations or they are going to go under. Things like indoor sporting venues (imagine your kid has 8am soccer, but you get to be warm inside and have fresh Starbucks and a breakfast sandwich while you watch). Places like Dave and Busters. Libraries. Bounce places. Gyms. More restaurants. You will probably see some start to open actual bars indoors eventually.

I'm curious to see if GME’s management can somehow ride this wave of new investment to adjust their business model and turn things around.

[Biggsy]

I'm curious to see if GME’s management can somehow ride this wave of new investment to adjust their business model and turn things around.

Honestly, I'm not sure a market exists for them now. With PS and Microsoft already having their own online stores where you can buy and download any game, including pre-ordering and early access for doing so. Gamestop is kind of in a bad spot. Brick and mortar businesses like Gamestop are losing more and more of their customer base to the online stores. Especially with both PS and Microsoft now offering subscription services as well where you get "free" access to a library of older games that Gamestops business was built on selling.

I honestly see no business model or redesign that saves Gamestop. And neither did all of the short sellers currently losing their asses on their stock right now. 🤣

[1970]

Congrats on your pending retirement!  What are your plans for when you've got more free time?  Any hobbies you intend to convert to full blown obsessions?  

Thanks Mack.  One thing I won’t be doing is leaving the area - unless I want to get a divorce as we live on my wife’s family farm.  I’m going to start building a good sized garage / work shop in the Spring.  I’ll then re-start a hobby I gave up a few years ago - woodworking.  I’m really just retiring from corporate life and I’ll only be about 60 when I retire.  I’m then going to get my dream job - Lowe’s or Tractor Supply.  I’ll dutifully put in my 30 or so hours a week and be very happy and hopefully stress free.