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 ...
Redditors and gamers did to hedge funds what hedge funds have been doing to companies like Gamestop forever.
Hedge funds lost billions. Already getting bailed out.
Gamers and "toxicity" being blamed once again, of course.
— Grummz (@Grummz) January 27, 2021
Elon Musk tweeted out support for the populist takeover of the market, which some credit as being the catalyst for the rocket-like rise of GameStop’s stock price.
Gamestonk!! https://t.co/RZtkDzAewJ
— Elon Musk (@elonmusk) January 26, 2021
The financial establishment is calling for “authorities” to do something about it. Why? The stock market is all about gambling. It’s a game. The finance bros are just mad that some guys on Reddit played better than the hedge-fund managers who are used to winning. Oh well! You win some and you lose some, boys! The memes are hilarious.
Live view of wsb overtaking the global financial system pic.twitter.com/y9jFOxYVew
— Fintwit (@fintwit_news) January 26, 2021
Even NASDAQ was threatening to shut down the market over the mass inflation of GameStop stock to protect their friends on Wall Street. NASDAQ CEO Adena Friedman was literally stuttering her way through a justification for regulating the people who made the house lose. This didn’t convince me of any wrongdoing. Does it convince you?
HAHA! Is that where you moved your money to when you got out of the market?
The Main Street traders who got the wealth are the ones who bought Gamestop at $20 and sold to the Reddit buyers at $300. It will probably stabilize somewhat above the original $20 with the short sellers chased off, but it will be a lot below the current price. Those late Reddit buyers who used their $600 stimulus checks to buy 2 shares will end up with 2 shares at $30. Right now we are similar to March if someone shouted "I'll pay $100 for that package of toilet paper".
Good to see the hedge funds nailed because they sell short and then drop hints on Bloomberg about how bad the stock is and never get caught for manipulation. But Gamestop is not worth $300+.
Would not be surprised if the Feds use whatever crooked scheme they can to stop this.
This could not happen to a more deserving bunch!
Redditors are posting what they’re going to do with their winnings. #Billions is trending on Twitter.
You can not convince me this isn't hilarious and ompletely worth a hedgefund going out of business. pic.twitter.com/A7zdsbZjzJ
— Griffin – Live Protest News (@GriffinMalone6) January 27, 2021
Investor Jason Calacanis pointed out that a bunch of kids with $600 stimulus checks created the perfect storm and managed to screw Wall Street.
I guess professional short sellers never considered what would happen if they got squeezed by a legion of tiny retail investors with 20-year-old forum software, a free-trading app, and a $600 stimulus check at their disposal
Perfect storm!
Of course they are spiking. This quote from Wall Street, the original movie, is precisely on point:
“Buddy, it’s not a question of
enough. It’s a zero sum game, sport.
Somebody wins and somebody loses.
Money itself isn’t lost or made,
it’s simply transferred from one
perception to another. Like magic.
That painting cost $60,000 10 years
ago. I could sell it today for
$600,000. The illusion has become
real. And the more real it becomes,
the more desperately they want it.
Capitalism at its finest.”
Weird, they didn't seem to think the market was under-regulated when it was them doing it.
“The financial establishment is calling for “authorities” to do something about it.”
Sorry, but “outsider” trading is not (yet) illegal.
Redditors are posting what they’re going to do with their winnings. #Billions is trending on Twitter.
You can not convince me this isn't hilarious and ompletely worth a hedgefund going out of business. pic.twitter.com/A7zdsbZjzJ
— Griffin – Live Protest News (@GriffinMalone6) January 27, 2021
Investor Jason Calacanis pointed out that a bunch of kids with $600 stimulus checks created the perfect storm and managed to screw Wall Street.
I guess professional short sellers never considered what would happen if they got squeezed by a legion of tiny retail investors with 20-year-old forum software, a free-trading app, and a $600 stimulus check at their disposal
Perfect storm!
they came up with a plan and it is working
GME down about 200 right now.
You just don’t let people buy the stock...like on Robinhood. They can only sell
You won’t be surprised. The system will protect the big money. It always does.
RE: Sorry, but “outsider” trading is not (yet) illegal.
Charles Payne at Fox Business Payne called it a “short squeeze” and said “it’s working.”
According to The New York Times, GameStop’s market value jumped from $2 billion to more than $24 billion “in a matter of days.” Share prices for AMC Theatres and Nokia have also been driven up.
“Wall Street is losing its mind and Wall Street now wants to change the rules of the game because a bunch of people with accounts ranging from $500 to $2,500 are taking down the billionaires,” Payne said.
If this kind of trading is to be made illegal, then Hedge Funds practices should all be made illegal as well.
Hopefully the administration will declare Robin Hood a domestic terrorist!
(and make themselves the laughingstock of everyone everywhere...)
One of many fine quotes from that classic film.
Spot on... Hedge funds being beat at their own game. The rules were the same until Robinhood restricted retail buying. What would Hedge funs do if their access to market was cut off?
The swamp is never far away. The reddit/wallstreetbets folks will face a new head of SEC enforcement. Peter Strzok’s wife has popped up again
https://www.sec.gov/news/press-release/2021-15
RE: Gold and silver are spiking today. ;)
Not sure if the Reddit groups are doing this.
Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.
Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.
Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.
Why not squeeze $SLV to real physical price?
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