Posted on 01/30/2021 5:43:57 PM PST by amorphous
Going broke? Maybe they can learn to code, or make solar panels.
I am hearing rumblings silver is the next short. Going big on Monday.
“At the time, poor beleaguered banks were victims, while hedge funds betting them down as the economy circled the drain were seen as antisocial monsters. “They are like looters after a hurricane,” seethed Andrew Cuomo, then-Attorney General of New York State, who “promised to intensify investigations into short selling abuses.” “
Amazing ! Now short sellers are saintly capitalists and small retail longs are the bad guys !
two things can happen.
1) hedge funds lose billions and get bailed out
2) their a-hole Swamp cronies in congress, tech, SEC and FED reduce the cost of the bailout by retroactively changing the rules, cancelling trades, freezing trading, deplatforming message boards
Probably a combination of both !
I can’t wait for Biden /Dem congress to delay Coronavirus relief to do a hedge Fund bailout !
Buying more GME on monday
I for one, like it when stuff like this happens. Investing, no matter what you invest in, involves risk. When investors (speculators?) are oblivious to that reality, bad things can happen. I healthy respect for the risks involved needs to be reinforced every now and again. I keeps the lily-livered at home...
I’m going to go direct to gold. GLD as well as physical.
I was going to move to ~ 15 % precious metals anyway just as more of an inflation hedge.
What are people going to do with Silver? Buy silver stocks, or try to get physical silver, or both?
“Short-sellers bet by borrowing shares from so-called prime brokers (Goldman, Sachs and JP Morgan Chase are among the biggest), selling them, and waiting for the price to drop, at which point they buy them back on the open market at the lower price and return them. The commonly understood rub is that prime brokers don’t always really procure those original borrowed shares, and often give out more “locates” than they should, putting more shares in circulation than actually exist (as in this case).”
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The law requires the short sellers to own the shares before they sell them.
As stated in the article, they can borrow the shares from a dealer
In the case of Game Stop, the hedge funds sold over 140% of the total number of shrares that game stock had in float.
This was illegal, but the hedgers have been getting away with destroying legitimate businesses by “naked shorting” a company into bankruptcy.. at which time the hedgers can pick up the stock to cover their short positions for pennies.
Whispers out there say the reddit crew & everyone that’s joined the party will not sell their shares until they see $1,000 per share
Who knows?
It’s been fun watching.
but the big financial institutions haven’t had any consequences. Actually, after 2008 they were red circled for survival.
These hedge fund guys are supposed to be so smart. So what about the internal risk controls where they are in a short position at 140% short interest of float ?
Also, what about the brokers lending stock to short sellers where the stock is 140% short interest.
If the short defaults, the broker makes it up... and now we are back to red circled for survival.
Best we get out of this is make Biden start his Presidency by bailing out hedge funds.
Actually, I’m glad for Trump here, that he is out of it. Now its not his monkeys, not his circus.
“hedge funds lose billions and get bailed out”
Alex Jones made a good point today. The White House and SEC pressuring and allowing trading apps to restrict, stop, and throttle the ability of people to buy the stock was a stealth bail out already. The effect was to protect the funds from further loss.
Monday should be an interesting day for SLV & physical.
In a run to gold, would gold stock prices go up? Or would only physical gold go up and paper gold crash? Both? Why?
i’d like to hear your opinion please.
It will be interesting to watch them exit...we might learn something. Or, they may just hold. There may be a natural limit of how low it will go if no one is selling, including the hedges who’ve sold more shares than there are available to purchase.
Lol, I for one think solar panels are a great investment. I have 2.3 kw worth and have been selling excess KWs back to the local utility for 11 years now! :)
I’m certainly not a gold expert, but mining stocks generally take a while before they move when gold prices spike up
Good for you, Sir. Just don’t get too caught up in things. :)
Buy physical silver.
Most of the silver market is totally fake—paper.
If you take possession of it you don’t own it.
Probably both, but the chatter is about SLV positions, not necessarily physical. Silver has been UNDERVALUED for decades; it’s no secret.
Trading at $27 and should be somewhere around 700-800. If there is a run, it is going to blast gold into the ionosphere too.
correction—If you _don’t_ take possession of it, you don’t own it.
Wait until congress gets done with them. There will be a shell of what Wall Street was.
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