Posted on 01/26/2021 6:18:14 PM PST by ransomnote
Thank You...
I would suggest looking for it on JuliansRum gab feed. I was just sharing what I thought was something of interest to the thread.
May be of interest to your discussion. Had this linked to me on linkedin.com. A good summary of what has been unfolding and why the “pros” are mad and trying to get the SEC to hinder the market.
“Because the rules are changing, people don’t like that,” technology investor Chamath Palihapitiya told CNBC. “We are moving to a world where ordinary folk have the same access as professionals and can come to the same conclusion or maybe the opposite. The solution is more transparency on the institutional side not less access for retail.”
Ymani Cricket wrote:
“Getting interdasting...
(Twtt about Yellen in contact with HF mgrs, NYSE, social media)
Yes it is.
Add that to the anons getting involved with stocks....
I’ve been trying on a couple places. So this is what is going on with GME and a couple other stocks.
Hedge fund shorted a stock. What this means is that they borrowed a share from someone who owns it and sold it at the current price expecting that it would drop in price and they could buy it back at a lower price and make a profit. That is a short sell.
However, what the Reddit and Robin Hood folks saw was that the stock was shorted by 150% of the shares available - which means that they either did a naked short (without a share available) or sold the same share twice - both of these are illegal by the way.
So when the short is that significant then if you can get enough buyers to jump in - (which in this case the reddit group is about 2M people strong) the price will rise. However the shorts have to cover if it goes up too much because there is NO limit to how much they can use - so the brokerages will call in the short if the amount goes to high against their accounts. The higher the price the more that these hedge funds stand to lose. The kicker is that when they start to try closing out their short position - which they MUST do by Friday (or whenever their brokerage makes the call on their account) their own demand will force the price even higher - especially IF no one is willing to sell their position.
This is a “short squeeze”. Some call it a Gamma short squeeze. As long as the holders of the stock don’t sell enmasse then the price must go up because the short seller HAVE to close their short positions by buying the stock. Since they OVER shorted it they are in a terrible position and the stock holders hold all the cards because there aren’t enough shares available for the hedge fund to close out their short position... unless the reddit/Robin Hood holder sell. Their target is $1000 by Friday.
There is a chance the SEC will step in to force a cap - but this would be against the market forces and basically a bailout by the regulatory agency. If that happens it means the markets - as well as the government are proving that there is a two-tiered system because they will not be allowing the market to set the price. Gonna be a helluva two days.
Other stocks are in play as well - though not oversold as much as GME. AMC theaters, Blackberry, and a few others range from 70-125% short stakes. The hedges made a bet they can’t cash and the retail traders have pooled together to hand them their backsides in a significant way legally.
I’m reading stories of college loans paid off, medical bills for family being paid, retirements funded, etc.... they are cashing small amounts to pay this stuff while holding onto the massive quantities need to prevent the shorts from closing. It’s amazing!
My standard comes from
9 The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun. 10 Is there any thing whereof it may be said, See, this is new? it hath been already of old time, which was before us. 11 There is no remembrance of former things; neither shall there be any remembrance of things that are to come with those that shall come after.
And
I Corinthians 10: Moreover, brethren, I would not that ye should be ignorant, how that all our fathers were under the cloud, and all passed through the sea; 2 And were all baptized unto Moses in the cloud and in the sea; 3 And did all eat the same spiritual meat; 4 And did all drink the same spiritual drink: for they drank of that spiritual Rock that followed them: and that Rock was Christ. 5 But with many of them God was not well pleased: for they were overthrown in the wilderness. 6 Now these things were our examples, to the intent we should not lust after evil things, as they also lusted. 7 Neither be ye idolaters, as were some of them; as it is written, The people sat down to eat and drink, and rose up to play. 8 Neither let us commit fornication, as some of them committed, and fell in one day three and twenty thousand. 9 Neither let us tempt Christ, as some of them also tempted, and were destroyed of serpents. 10 Neither murmur ye, as some of them also murmured, and were destroyed of the destroyer.
11 Now all these things happened unto them for examples: and they are written for our admonition, upon whom the ends of the world are come........
We have been given the script long ago.
There are no better memes on the internet right now than WSB. Discuss. pic.twitter.com/ItfcbFIKso— José Luis Ricón Fernández de la Puente (@ArtirKel) January 26, 2021
Here’s the deal with public officials and threats: threats go with the turf and there is plenty of security available if needed.
If an elected official caves in the face of threats, they have caved to the mob. That is a kind of cowardice that can not be excused on the part of an elected official. The SOLE remedy if they feel the need, is resignation.
Anything less is a betrayal of the people.
Maudeen wrote:
“Congrats on the retirement but you may need to hold on to options because taxes (state, federal and local) not to mention fees are going to go through the roof! Bigtime!”
The tax guy and I figured it so the pension distribution would be such that I’d get all of my fed tax back at the end of the year, there isn’t any state tax, and local tax is school/city/county.
401k is 90% bonds 10% company stock.
No debt, house & car paid off, and credit card gets paid in full the end of every month.
Perfectly encapsulates the stonk revolt dynamic
Maybe so - might grab some of that SDS if that ema doesn’t hold
for that matter, everything put out by any govt entity should be carefully scrutinized...
they are out right liars....
***************************************************************************
As I told my oldest daughter when they visited before the election, I assume the government is lying, until it can be proven otherwise.
Those stolen memes look rather.... Q-ish!
Satire got someone facing 10 years??!!??
I love the meme,..
but Foldy, where did you get the #326 association??
Thanks. And add to that the Fed was moved into the Treasury.
but, can anyone join these reddits?....
LOL. Anyone arrogant and stupid enough to do naked shorts desires what they get. 🤣🤣🤣🤣🤣🤣
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