Do Soros next.
Your friend,
Bagster
Posted on 01/28/2021 8:06:20 AM PST by SeekAndFind
The craziest financial story of the week has got to be GameStop stock’s meteoric rise from $6 a share to $340 a share overnight. It all began when Melvin Capital hedge-fund managers decided to short GameStop, betting the stock would fall. But a lot of retail investors viscerally hate billion-dollar hedge-fund managers who make a living manipulating the stock market and driving small investors out of the game.
The investors on Reddit’s “Wall Street Bets” page got together to buy, buy, buy GameStop and drove the stock way up, costing Melvin Capital billions of dollars. You could say it was a massive redistribution of Wall Street wealth to Main Street traders.
Kickboxing champion Andrew Tate said, “If I have to lose six million to destroy Wall Street, I’m ready to f*cking go. F*ck ’em. These people on Reddit are geniuses.” He went on to explain why he and a lot of people don’t like Wall Street hedge-fund tycoons:
They’re the worst people on earth…they have no talent, they don’t make money, they just have a pot of money and they manipulate markets to make their pot go up with other people’s money and they get bailed out by the government anyway. They’re the worst people in the world.
Tate laughed uproariously imagining Melvin Capital financial teams waking up to the news that GameStop had a 600% increase overnight and wiped out 30% of their entire net worth. (Tate can be seen in the YouTube video at the bottom of this article.) Rumors of bankruptcy prompted a cash bailout of $2.75 billion by billionaire investors to keep Melvin Capital solvent.
Steve Cohen’s Point 72, Ken Griffin’s Citadel, and other partners are plowing a total of $2.75 billion into Melvin Capital, the hedge funds said on Monday.
(Excerpt) Read more at pjmedia.com ...
Stock will fall and people will lose their butts. Fun to watch though.
Robin Hood screwed up here. They have competitors waiting in the wings. Never screw over your customers, unless you’re Goldman Sachs.
Government Sachs always gets away with it.
https://www.zerohedge.com/markets/reddit-rebellion-about-descend-precious-metals-market
Do Soros next.
Your friend,
Bagster
Great quote, but this is less about what’s being done than it is about who’s doing it.
Deep State and its big biz cronies don’t like competition.
Don't count on that. I'm slowly working myself out from under their clutches.
Robinhood is no longer supporting Gamestop as of today.
They should call it "reparations". Make the mediot's heads explode.
“One of many fine quotes from that classic film.”
My first job out of college in 1984 with a finance degree was working for a brokerage house.
The movie is spot on how it was back then. Little exaggerated.
I was a lousey trader was fired. I am not the type a, ruthless competitive type of person.
I was making 75-80k and I was at the bottom of the rung in sales. That was a lot lof money in 1984 but there was guys making 350k on up.
PE for most stocks is at historic highs now. If this drives everyone to value, it will be a “game” changer for every market...
While it is good to see a hedge fund get gamed by a bunch of little guys, in any price wave the biggest beneficiaries are usually small in number but always on the early side of the buying wave. The smartest of them sold their recently bought shares long before the wave hit its high, while the majority will be holding shares bought at prices above what the price will settle down to. Some, with big skin in the game but not with large other assets may have to take losses that collectively may equal or exceed what the hedge fund lost.
I’d like to see if possible a way for these internet trolls to do the reverse of what happened in the last few days, instead of pushing up the price they could force the stock way down just to screw with these hedge funds
And at the end of the day, Game Stop is still a dying business. A brick and mortar retailer of what is now mainly a digital asset. Any executive there with stock is selling it off as fast as they can.
Agree
The Reddit Group ("RGs") are day traders.
They are not investors.
Also, 95% of the RGs who try to play the GameStop trade are going to break even or lose money.
GameStop is worth $20 - or less.
It does not matter how high the price gets. Once every short seller is flushed out, the stock price is going straight back to $20.
Unless - LOL - the RGs start shorting GameStop on its round trip to $20!
I’ve always considered the Trilogy of Modern America Business Films to include “Wall Street”, “Glengary Glen Ross” and “Boiler Room”. A couple semesters worth of business knowledge (and shennigans of course) contained therein. Cheers!
I wonder if this will be the first ripple in the collapse of the US Jenga economy? Right now, it seems to be right on the edge of a second Great Depression, much larger than the first, as the experts have been saying for quite a while.
You have to have a great upset before you can have a great reset.
They are doing it correctly—the hedge funds have much higher exposure with shorts.
The key tactic is to force the hedge funds to raise cash to meet their obligations—preferably in nanoseconds!
I am so proud of our young people—they _get_ it.
Sun Tzu—The Art of War.
Attack them when and where they are weakest.
Have a thousand new tactics waiting in the wings.
Karl, there was naked short selling (120%) previously in GME. That will make the main street buyers whole because +20% stock must be bought back to cover the WSB’s short positions.
There’s more than enough ‘Must Buy Back’ positions to cover Main street investors purchases.
The Robin Hood (and other young small investors) used their stimulus checks to “strike back” at the system.
If they made money, great—if not, it was a “political contribution”.
;-)
Just wait until the next stimulus check hits!
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