Posted on 02/01/2021 4:35:56 AM PST by NewJerseyJoe
Or a link that explains it. Thank you
Even after watching Trading Places for 30+ years, I still don't understand exactly what they were doing at the stock exchange. 🙁
Any reason the brokers who lent the stock in the first place wouldn’t just agree extend for another 15 days or so (for a very significant fee)?
And my comment applies there equally.
Don’t know, when the demand for the stock is high, how long will they let them wait for the stock?
Once the hedge funds start to buy the stock to repay their borrowing, they are in for a ride.
yes
Naked short selling is the problem. This is what retail investors are attacking.
Investment houses can sell unlimited amount of stock depressing the price of a companies stock to the point of BK.
There is no requirement to return borrowed stock within a month, because no stock has been borrowed.
You forget the naked short thing. You , Mr Turkey Hedge Fund who is sleeping with the butchers wife, sold 100% of turkeys on earth, and for good measure sold 40% more imaginary turkeys and now you have to come up with 140% of all turkeys on earth which a 5 year old understands is impossible. The butcher found out about your sale and is “plucking” you hard insisting you deliver those turkeys and his wife trying to help you by stealing his turkeys and giving them to you under the table.
Rush mentioned this on his show last week...
What if what you describe just what happened, only that the short selling was done at prolonged and at 140% the number of stocks?
Hedge funds borrow shares of stock at sat $20, they then start selling that stock back and forth amongst them at lower prices during each trade. This drives the price down, maybe to ZERO, they then buy the shares back at ZERO or whatever they drove the price down to to return the borrowed shares.
The difference between what they borrowed them at and what it cost to replace is their profit.
A bunch of people on Reddit, CALlED their bluff and continued buying the stock, refusing to sell and drove the price sky high, thereby Bankrupting the Casino.
When they first short the stock, they are hoping that there are buyers in the market at the current price. The GameStop stock has an average daily trade volume of several million shares, so there's always buyer activity.
When it comes to buying back the shares they are short, the short traders themselves are compelled to buy.
-PJ
Turkey......
Perfect explanation! lol
the DS counterfeited stock.
the DS got caught.
today is FREEDOM DAY.
Panic for DS.
Ahhhhh, but therein lies their conundrum. They, on paper though not in practice, are not naked, rather the houses that allowed the trades invented the stock out of whole cloth and are charging them sky high interest. All of this done on a wink and a nod. Wall Street is crooks to the left and thieves to the right with fraudsters in the back and liars up front.
The media goes on about how they need to regulate this activity. The activity that needs to be regulated if anything is the short sellers. They got to the point where they shorted 140% of the available stock. They set themselves up and I am sure they have done it in the past and got away with it.
If more regulation is to come, they need to limit the amount of shorts.
I’d say don’t even touch it, whatever the Government touches is a dumpster fire anyway.
So what if this happened. The important thing is these Hedge Funds got caught and are going to pay a lot of money.
Ben Shapiro doesn’t do that good a job at explaining, First of all, he sounds like a sped up recording to 3x speed. Second, he doesn’t explain the dynamics of how simply buying stock increases the price appreciably.
If it were as easy to increase the price of a stock by merely buying lots of shares, then why don’t the big players increase the stock prices when they buy up shares to replace the short sell shares?
Don’t be so fast to think silver can’t be squeezed. Most of the silver paper is as naked as the 40% over sold GME. The issuers of the paper can not deliver. Not enough physicals.
In the 70’s the Hunt bros ran silver up from $11 to over $50. It wasn’t oversold then. Overselling increases paper issuers risk exponentially.
Hide and watch.
Short sellers assume unlimited (potential) risk.
“He who sells what isn’t his’n...
... buys it back or goes to prison.”
SLV’s prospective states that if they can’t get physical delivery, the NAV just diverges from spot silver. So tell me how that works? It doesn’t.
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